6,000 Starbucks Locations are Green Stores

Starbucks has certified over 6,000 of its global locations as “Greener Stores.”

The certifications demonstrate that these establishments meet sustainability and environmental impact criteria, including waste diversion and energy and water savings.

The company’s Greener Store program expanded to new markets in 2023, resulting in nearly doubled certified Greener Stores to 6,091. With the addition of new markets such as India, Hong Kong, Indonesia, Malaysia, New Zealand, Philippines, Singapore, Thailand, Taiwan, Vietnam, Bahrain, Italy, France, Spain, and Costa Rica, Starbucks now operates Greener Stores in 44 markets.

It must be noted that Starbucks launched the Greener Store initiative in 2018 to have 10,000 Greener Stores globally by 2025. It first launched the initiative across its U.S. and Canadian locations. Starbucks claims that its Greener Store policies save it almost $60 million annually in U.S. operating costs. These savings come from 30% water and 30% energy savings, among other measures. Additionally, the Greener Store policies help the company achieve its “resource positive” sustainability goals, which call for a 50% reduction in carbon emissions, water use, and landfill waste by 2030.

Michael Kobori, Chief Sustainability Officer, Starbucks, said, “Our big vision for the future is for every Starbucks store around the world to be more sustainable. That’s why I’m excited to see the continued growth of Greener Stores globally, driven by the passion of our partners.”

“Starbucks’ environmental promise comes to life through our baristas’ daily actions which help define a Greener Store, our innovative shift toward reusable cups, and our partnership with coffee farmers on sustainable growing practices — it’s all part of our commitment to give more than we take from the planet,” he said.

If we were to list the value chain of any large Indian corporation or the India office of an MNC, the micro, small, and mid-size enterprises (MSME) would comprise more than 80 percent.

As more and more organizations prepare themselves and their teams to adhere to various ESG statutes and sustainability compliances in 2024, they must also involve their MSME partners in their green endeavors.

The right time:

India has set the target to achieve net zero emissions by 2070. Furthermore, the Indian government launched the “LiFE” (Lifestyle for Environment) campaign, realizing that achieving a sustainable future requires the participation of citizens. The UN recently commended the G20 Presidency of India for emphasizing sustainability goals.

Businesses are held accountable by the 193 UN member states to achieve sustainable development. However, since MSMEs are essential to business value chains, large corporations can only meet their ESG targets if they assist MSMEs in implementing sustainable business practices.

The reason is twofold:

1. Climate change and resultant disasters impact everyone equally. It is therefore crucial that everyone is aware of the impacts of their business not just on their top line and bottom line but on the overall planet.
2. Since new compliances demand that the enterprises calculate Scope-1, -2-, -3 and now even -4 emissions at all levels, and MSMEs form a bulk of any organization’s supply chain, it is essential to create awareness in the community. More vital is encouraging it to create its own sustainability and integrated reports!

The importance of MSMEs and the changing business dynamics:

MSMEs play a crucial role in achieving the 2030 Agenda for Sustainable Development and SDGs by reducing poverty, creating jobs, and promoting entrepreneurship. They are food producers and contribute 27% to India’s GDP. To address climate change, large and small businesses must invest in sustainability. The government can empower the MSME sector by introducing standardized ESG disclosure and certification providing guidance, incentives, and support.

The MSMEs are in the spotlight for various reasons. This includes their increasing:

a) Contribution to the Indian GDP
b) Contribution to the manufacturing production
c) Stake and significance among the global supply chain
d) Contribution to exports
e) Contribution to the UNSDGs
f) Manufacturing and systems integrated of the IT and solar/wind power solutions

The sheer magnitude of MSMEs—they contribute more than 29% to the GDP and are responsible for 50% of the country’s total exports. The sector generates 360.41 lakh jobs out of the 11.10 crore jobs. The jobs mainly belong to the manufacturing sector, in the rural and urban areas, with 387.18 lakh jobs in trade and 362.82 lakh jobs in other services across the country. They are also accountable for one-third of India’s manufacturing output —making them an essential candidate for assistance in becoming inclusive and sustainable.

However, the booming sector faces pressure from domestic and international—TCFD, BRSR, SBTi, (CBAM being the latest) regulatory mandates to disclose sustainability/ESG initiatives.

Indian MSMEs lagging:

How prepared are our MSMEs to report on DEI, green finance, governance, and the environmental impact of their business? to make the information public?

According to three SIDBI and Dun & Bradstreet India surveys, only 25% of MSMEs have the internal knowledge or ability to implement sustainability measures in their operations. This highlights the significant challenges that MSMEs face in implementing these initiatives owing to a need for more capital and technical expertise.

The SPeX report shows that only one in three MSMEs in Q3 2023 were aware of green financing and its impact on brand image and competitiveness.

While MSMEs continue to be highly aware of sustainability issues and are eager to adopt sustainable practices, compliance is outside their priorities. According to the survey, only 23% of MSMEs claimed prompt and complete compliance with sustainability regulations, and only 17% had started sustainability-related policies and procedures. Furthermore, just 2 out of 5 MSMEs claimed that client retention has improved due to sustainability initiatives.

Government support and investors’ push:

Recognizing the potential of the MSMEs, the GoI recently launched three sub-schemes under Raising and Accelerating MSME Productivity {RAMP) program to promote sustainable technology adoption, boost the circular economy, and address delayed payment issues.

Among them, the MSE SPICE Scheme and MSE Green Investment and Financing for Transformation (GIFT) Scheme are government programs aiming to support circular economy projects and the MSME sector towards zero emissions by 2070, providing credit subsidies and support.

Besides, the GOI revamped its credit guarantee program for MSMEs in Budget FY2023-24 to lower credit costs and provide additional guaranteed credit without collateral.

The Union budget announced plans to launch a unified Skill India Digital Platform to facilitate demand-based formal skilling, connect employers, and foster entrepreneurship schemes.

One of the best pushes to report on ESG disclosures can come from the stock exchanges. The SEBI has mandated India’s top 1000 listed companies (by market capitalisation) to report on Business Responsibility and Sustainability Reporting.

Why are such disclosures not mandated for the MSME segment?

So far, 464 companies have been listed on the BSE SME platform, of which 181 have migrated to the main board.

Similarly, the market capitalization of the SME companies listed on the NSE Emerge platform crossed ₹1 lakh crore mark for the first time. Almost 397 companies have listed on NSE Emerge with fundraising of more than ₹7,800 crore.

The Nifty SME EMERGE Index launched in the year 2017, currently consisting of 166 companies from 19 sectors, has shown a CAGR of 39.78% till November 2023, which signifies a notable track record & the growing contribution of the SME sector in the overall economic growth of our country, the National Stock Exchange (NSE) said.

Notwithstanding the widely recognized significance of the MSME sector in advancing the industrial development of the nation, it is a fact that the industry has been confronted with a multitude of challenges. Therefore, to enable the MSME sector to comply with the ESG and sustainability standards, as the regulators have stated their intention, large corporations, and the government must provide timely assistance and incentives within a predefined time frame.

The changing scenario:

However, in August last year, a survey showed that ESG adoption was considered a high priority by 92% of Indian MSMEs. They believe that ESG is essential to joining the global value chain.

Hence, various ESG risks are also assessed for MSMEs, such as inappropriate waste disposal techniques, the impact of climate change on production, noncompliance with labor laws, inadequate health and safety measures, human rights violations, irresponsible raw material sourcing, and unethical business practices.

End note:

These are encouraging trends. A slight nudge, a small push, can go a long way in integrating the MSME segment into the mainstream of ESG.

A new climate action report cautions about alarming trends in carbon emission initiatives by the corporate sector.

Just 14% of the companies reduced carbon emissions in line with the set targets over the past five years, reveals a new report. This is alarming as climate-related disasters intensify in frequency and severity, creating economic impact on communities and businesses.

Despite a responsibility to mitigate the crisis with emissions reductions in their operations and supply chains, companies have not made much progress over the past year. The new report by CO2 AI and Boston Consulting Group (BCG) is being released ahead of COP28.

Titled Why Some Companies Are Ahead in the Race to Net Zero, the study builds on CO2 AI and BCG’s 2021 and 2022 investigations into the progress that businesses worldwide have made on emissions measurement and reduction.

The two companies surveyed 1,850 executives responsible for emissions measurement, reporting, and reduction in their organizations across 18 major industries and 23 countries. Each organization surveyed had at least 1,000 employees and annual revenues ranging from $100 million to over $10 billion.

“There are encouraging signs of progress in measuring and reducing emissions, but businesses must redouble their efforts,” said Hubertus Meinecke, BCG’s global sustainability leader and a co-author of the study.

Highlights of the survey

Companies are falling short on reduction ambitions, citing a wide array of challenges
Companies have significantly improved partial measurement and reporting of Scope 3 emissions—up 19 percent since 2021, from 34% to 53%
Asia Pacific respondents improved comprehensive emissions reporting by 7 percentage points (PP) since 2021; South American and North American respondents improved Scopes 1 and 2 emissions reporting by 9 PP and 5 PP, respectively.
On decarbonization, 40% of survey respondents estimated an annual benefit of at least $100 million to their business.
Within the next three years, 30% of companies plan to expand the deployment of AI-powered tools to improve accuracy, efficiency, and decision-making in emissions management.

“Businesses are increasingly acknowledging the transformative power of technologies and artificial intelligence in bridging the divide between their reduction ambitions and real, tangible impact,” said Charlotte Degot, CEO and Founder of CO2 AI and a co-author of the report.

Progress on Comprehensive Emissions Measurement Remains Slow

According to the survey, just 10% of companies now report comprehensively measuring all their emissions, revealing no improvement relative to the 2022 survey. More concerning, only 14% of companies report reducing emissions in line with their ambitions over the past five years, down 3 pp from 2022, citing difficult economic conditions and capital constraints as challenges to their reduction efforts.

However, companies that have made decarbonization progress are realizing both financial and non-financial benefits to their businesses, citing reputational value, lower operating costs, and regulatory compliance among the top benefits. When asked to quantify, 40% of respondents estimated an annual financial benefit of at least $100 million from meeting emissions reduction targets, a 3 pp increase compared with last year’s survey.

An Improvement in Scope 3 Emissions Measurement

The number of respondents indicating partial measurement and reporting of Scope 3 emissions has increased by 19 pp since 2021, from 34% to 53%. In tandem, more respondents said they had set Scope 3 reduction targets—up 12 pp since 2021, from 23% to 35%—with the most common areas of focus being waste management and purchased goods and services.

Some regions have demonstrated a clear improvement in comprehensive measurement of emissions in the past two years. Asia Pacific respondents improved comprehensive reporting of Scope 1 (direct emissions from company-owned and controlled resources), 2 (indirect emissions from the generation of purchased energy that an organization consumes), and 3 (indirect emissions that occur in the value chain of a company, including both upstream and downstream emissions) emissions by 7 pp since 2021. The number of South American and North American respondents improved comprehensively, reporting their internal emissions, Scopes 1 and 2, by 9 pp and 5 pp, respectively.

Four Traits of Companies Reducing Emissions in Line with Ambitions

Companies that report reducing their emissions in line with their ambitions were found to display four notable traits more strongly:

Collaborating with suppliers and customers on emissions measurement and reduction: 75% of companies that reduced emissions in line with their ambition have joint reduction initiatives with most of their suppliers, and 54% have similar initiatives with most of their customers.
Calculating emissions at the product level: The survey found that 75% of companies attempt to calculate emissions for at least some of their products “from cradle to gate,” that is, from raw materials to distribution.
Harnessing the power of digital technology in the emissions-management process: Companies with automated digital solutions for measurement are 2.5 times more likely to measure their emissions comprehensively. In addition, 30% of companies plan to expand the deployment of AI-powered tools within the next three years to improve accuracy, efficiency, and decision-making in emissions management.
Viewing Regulations Positively: They are 2.0 times more likely to view emissions-reporting regulations to be a key enabler of reduction.

A recently released study shows that consumers are willing to change their behavior as environmental concerns are increasing due to extreme weather. They are also ready to pay 12% more for sustainable products. Bain & Company published a major new study exploring the top sustainability concerns for business leaders, customers, and employees.

The study further finds that more than 60% of businesses are off track to meet their sustainability goals. Progress will require a combination of technology, policy, and behavior change. There is a need to increase the conscious base of consumers and employees. This may help companies follow sustainability goals.

Said François Faelli, partner and head of the global sustainability practice at Bain & Company, “The companies know they have a key role to play in the energy and resource transition. Many view this as their legacy, but they are worried about the growing gap between their progress and public commitments. While it will not be easy, there are three levers CEOs must prioritize: policy, technology, and behavior.”

As part of the study, they surveyed 23,000 consumers. The results underscore the growing urgency of sustainability topics. Some 64% of people reported high levels of concern about sustainability. Most said their worries have intensified over the past two years and that their concern was first prompted by extreme weather.

Consumer facts

Baby boomers are often just as concerned as Gen Z.
Both liberals and conservatives are concerned about the environment.
Consumers are willing to pay a premium for sustainable products, 12% on average, but they are still priced too high.
Consumer behavior can change more quickly than anticipated.
There is a disconnect between what consumers want and what most companies sell.
Consumers struggle to identify sustainable products and don’t trust corporations to make them.

Four critical areas of focus for companies

The momentum behind sustainability and dynamic shifts in consumer behavior has profound implications for any company.

Devise a future-proof and flexible strategy. Few companies plan beyond the typical 3-year strategy, and even those who look at 5 to 10 years tend to focus on expectations for technology adoption. These plans fail to fully consider two other factors that move just as rapidly and with as big an impact: regulations and consumer behavior.
Acknowledge a fragmented consumer base. Companies need to diverge consumers, innovate products, and design propositions that appeal to different segments—local markets, consumers with different definitions of sustainability, and consumers with a range of purchasing motivations.
Test and learn to determine what works—and repeat. In such a fluid environment, companies can lean aggressively on marketing experimentation, using digital tools, and adapt accordingly.

Get in front of regulations. As we’ve seen worldwide, government policy inevitably becomes a huge contributor to changing consumer behavior. Across all industries, companies need to be at the forefront of helping to shape the regulations affecting their businesses. A company’s ability to anticipate policy shifts and build future-proof portfolios will help determine whether it can outpace competitors.

Upskilling employees to rise to the challenge

The study found that 75% of business leaders believe they have not embedded sustainability well into their business. The instinct of many CEOs is to prioritize external hiring to address all skill gaps, including sustainability.

A new survey of 4,700 people found that 63% felt different skills and behaviors would be required for their company to execute its ESG ambition or strategy. Yet only 45% of nonmanagers said their employer offers reskilling and upskilling opportunities that would enable internal mobility.

Despite almost every CEO saying they have a talent problem, few companies have defined what it means to be a great employer. In another recent survey, 44% of respondents said it is easier to find a better opportunity outside of their company than within it.

Google has signed market advisory firm Deloitte as its first global systems integrator (GSI) for the Cloud Ready Sustainability Program.

The Google Cloud Ready (GCR) Sustainability Program validates Google Cloud-aligned organizations with business-ready technology to help customers achieve their sustainability goals.

The partnership:
Deloitte uses generative AI and geospatial data to help clients mitigate climate risks, adopt green solutions and unlock the value of low-carbon products and services.

As a GCR-GSI, Deloitte is already leveraging its industry and domain knowledge with Google Cloud’s technology and platforms to help customers transition to a sustainable future.

The two companies are enabling customers globally to create economic pathways toward zero emissions.

Solutions and use cases:
The electrified Fleet solution includes integration of global fleet telematics data, resource optimization and ongoing impact monitoring for customers to map their electrification journey.

Freight and logistics:
For instance, Deloitte is using the solution to help Purolator, an integrated freight, package and logistics solutions provider in Canada, to map its net-zero transportation journey.

Purolator aims to reduce Scope 1 and Scope 2 GHG emissions by 42% by 2030 and reach net-zero emissions by 2050. Deloitte developed a strategic roadmap that included assessing vehicle types, usage patterns, and energy options, achieving emissions reduction and electrifying 60% of last-mile delivery vehicles by 2030.

FSI:
Deloitte and Google Cloud are using geospatial analytics to enhance visibility and gain new insights to climate risks across lending and investment portfolios in the financial services industry.

The National Westminster Bank (NatWest), a major bank in the United Kingdom, leveraged geospatial data from Google Earth to capture climate-related data points across its commercial banking portfolio.

Google Cloud, Deloitte and Climate Engine used the geospatial technology to provide new data points and insights to assist NatWest with its climate reporting obligations — e.g., the EU Taxonomy and Taskforce on Nature-related Financial Disclosures (TNFD). Secondly, the data was also used to support their customers’ own climate and nature data collection. The information allows farmers to build a tailored picture of the challenges such as flood, drought, fire and biodiversity risks, at the field-specific level.

The road ahead:
Going forward, Deloitte and Google Cloud’s global initiative will focus on sustainability, climate, and equity, helping clients transition to zero-emission energy, sustainable capital markets, and equitable communities.

“We are excited to be working with Google to take purposeful action to help mitigate climate risks, unlock the value of sustainable products and services, build green communities and green jobs and accelerate our progress toward a global net zero future,” said Jamie Sawchuk, Partner and Global Sustainability Leader, Alphabet Google Alliance, Deloitte Canada.

“Through this program, Deloitte and Google Cloud can leverage our unique roles to help bolster the momentum to address climate change with cloud-based technologies and AI,” said Justin Keeble, Managing Director, Global Sustainability, Google Cloud.

Backdrop:
Launched in 2022, Google Cloud Ready – Sustainability is a partner-led program, aimed at partners committed to helping global businesses and governments accelerate their sustainability programs. The partners build solutions that enhance the capabilities and ease the adoption of Google Cloud technologies such as Google Earth Engine and BigQuery, allowing customers to leverage data-rich solutions that help reduce their carbon footprints.

Tag: Sustainability goals

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