Starbucks China is extending its carbon reduction efforts to the upstream supply chain.
At the third China International Supply Chain Promotion Expo, Starbucks China reached a strategic cooperation agreement with Envision Group.
In the next three years, they will jointly build a carbon management platform for Starbucks China's supply chain, completing the full-chain carbon footprint calculation for Starbucks' direct procurement suppliers and important indirect procurement suppliers, and based on this, customize carbon reduction pathways for them.
The carbon footprint accounting, based on international standards, divides corporate greenhouse gas emissions into three scopes: direct emissions from owned facilities (Scope 1), indirect emissions from purchased energy (Scope 2), and indirect emissions from the value chain generated upstream and downstream (Scope 3).
Starbucks China and Envision have long collaborated in the areas of Scope 1 and Scope 2.
The core operational facilities of Starbucks China's over 7,500 stores have all connected to Envision's intelligent IoT operating system.
Relying on this system, Starbucks implements intelligent management of seven major systems and over 20 types of equipment, such as air conditioning and lighting, according to the operational characteristics of different store types and time periods.
This initiative has reduced emissions while improving operational efficiency, achieving an average annual energy-saving rate of 12% per store, equivalent to an annual saving of over 6,000 yuan in water and electricity costs.
The number of stores certified as green stores nationwide has exceeded 2,100, accounting for nearly 30% of the total number of stores in China, significantly higher than the global average.
The Starbucks Coffee Innovation Park also adopts Envision's &#34;zero-carbon integrated energy solution.&#34;
Through measures such as solar photovoltaic panels, smart energy storage, DC fast charging, digital energy and carbon management systems, and green electricity procurement, the park achieves energy saving, cost reduction, and carbon reduction.
The park has deployed over 26,000 square meters of solar photovoltaic panels, which can meet 20% of its energy needs. The industrial park achieves 100% green electricity coverage, with its annual carbon reduction equivalent to the carbon absorption of 800,000 coffee trees in a year.
For Starbucks, as the &#34;chain leader,&#34; Scope 3 is the core challenge for carbon reduction.
Calculations show that about 70% of its total value chain carbon emissions come from upstream suppliers.
To address the largest single source of carbon emissions from farms, Starbucks and Envision will jointly develop sustainable dairy digital management tools. Through green electricity procurement, they will build photovoltaic facilities to optimize energy management; at the same time, they will adjust feed formulas and additives and implement precision feeding.
A relevant person from Starbucks China told Xinfeng that over the past two years, the investment in calculating suppliers' carbon emission footprints has been borne by Starbucks, and in the future, even with business expansion, some costs will still be covered by them.
Starbucks China CEO Liu Wenjuan stated, &#34;We look forward to deepening our cooperation with Envision, allowing the supply chain behind coffee to move towards green alongside Starbucks, and we welcome suppliers to apply the successful experiences of carbon reduction for Starbucks to broader areas of their own operations, promoting a larger-scale green transformation in the catering and retail industry.&#34;

SBUX

Collaborative carbon reduction across the entire value chain

- Starbucks China is extending its carbon reduction efforts to its upstream supply chain through a strategic partnership with Envision Group.  
- Over the next three years, they will develop a carbon management platform to calculate the carbon footprint of direct and indirect suppliers, aiming to create customized carbon reduction pathways.  
- The initiative addresses the significant challenge of Scope 3 emissions, which account for approximately 70% of Starbucks' total carbon emissions, particularly focusing on sustainable dairy management to reduce emissions from farms.

In collaboration with Envision Technology, Starbucks China launches a full-chain carbon inventory