Starbucks’s sustainability actions based on its Greener Stores Framework
| Date of interview | October 18, 2022 |
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| Interviewees | Starbucks Coffee Japan Ltd. Kazuhiro Yanagi Team Manager, Sustainable Design Team Concept Design Group, Store Design Department Store Development Division Yoko Sugiyama Team Manager, Solution Planning Team Facility Management Group, Store Construction Department Store Development Division |
First, could you give us a summary of what your jobs are.
Mr. Yanagi: I am working in the Sustainable Design Team, which is part of the company’s Store Design Department. My job mainly entails the facilitation of certification based on the Greener Stores Framework, which is an international certification program designed to promote stores that are less harmful to the environment. The Greener Stores Framework is Starbucks’s own global certification initiative jointly developed with the World Wildlife Fund (WWF). To become certified under this program, stores must meet the eight criteria as explained below. If a store is conducting its operation in an environmentally conscious manner by striving to reduce its CO2 emissions, water use, and waste, and is qualified as such by this global certification, it officially becomes a greener store. Meanwhile, all new stores that will be opening in the future are all basically designed as greener stores. Since I cover all sustainability-related aspects of store design development, my job is fairly cross-functional.
Ms. Sugiyama: I am assigned to the team that handles store-building projects, which is part of the Store Construction Department. It is also responsible for implementing effective designs suitable for store operations, introducing new appliances, and providing technical support on various aspects of store construction. As far as the Greener Stores Framework is concerned, I handle technical matters such as analysis of changes in energy and water consumption caused by our adoption of different in-store items.
In this capacity, I am also leading the effort to expand the use of renewable energy at our stores. While they still comprise only a small percentage, all currently-operating Starbucks stores in Japan that have drive-throughs or are otherwise directly accessible from the adjacent roads − which are known as romen-ten (road-facing stores) − are RE100-certified in terms of their electricity sourcing (RE100 is the global initiative under which participating businesses aim to source 100% of their electricity from renewable energy, whose membership includes many corporations from all around the world including Japan). When planning electricity sourcing, we take into consideration the climate, culture, history, and other factors that are important to each area where a Starbucks store is located, as we believe in giving back to the local communities in all the ways we see fit, to show them appreciation for allowing us to operate our stores.
What is the Greener Stores Framework?
Mr. Yanagi: The Greener Stores Framework is a certification program created by the Starbucks headquarters, which is adapted and applied to each of the countries and regions around the world. So, it is basically a scheme for certifying the stores that are operated in an environmentally conscious manner. Before that, we used to use LEED (Leadership in Energy and Environmental Design) for our store certification, which is an international certification system for assessing green buildings that are friendly to humans and the environment, and we do have several Starbucks stores in Japan that are LEED-certified. However, as Starbucks had decided to move away from LEED to create a unique set of standards that can be better applied to the retail operations of such scale as that of Starbucks, we co-developed the Greener Stores Framework with SCS Global and the WWF. As each of the standards that comprise this Framework must reflect the circumstances, laws, and systems of each country where it is adopted, we have made some modifications while making sure that the standards that we use in Japan are on par with the rest of the world. We are currently making arrangements so that all our stores will become certified under the program in the near future.
In terms of store design development, we have created the related standards so that they can serve as the baselines for progressively achieving sustainability, including the parts of our stores that are not so visible out in the open where materials with no traceability could potentially be used. None of these standards are extraordinary, as the main goal here is to make sure that each of the materials used meets the commonly-accepted environmental standards before it is used in our stores. As the Greener Stores Framework is also constantly updated, they will be comprised of different standards five years and 10 years out from what we apply today. So even the stores that are certified once under the program will get renovated in several years’ time when its air conditioning system is upgraded, say, or another form of capital expenditure occurs. Our goal is to develop and implement such standards that will set in motion a virtuous cycle that allows all Starbucks stores to become and remain as environmentally conscious operations.
Ms. Sugiyama: We are not just focused on adopting any and all practices simply because they are good for the environment. Rather, we consider it essential to maintain all the qualities that a good café should have for our customers while creating a sound work environment for our employees that are referred to as partners. For example, if we dim the lighting to save energy, it will be difficult for our staff to determine whether the cream topping on a glass of Frappuccino is done properly.
While I have been conducting interviews with people around the world over the past year to learn about the unique circumstances of each region, I realize that the technology being applied in manufacturing in Japan is highly advanced, which affords us a wide selection of products to choose from that all meet the environmental standards we value. In this regard, I feel quite lucky about the circumstances we are in. So our greener stores will be using such ecological items as I’ve just described in order to deliver to our customers the Starbucks experience that entails both sustainability and comfort, and will keep evolving as increasingly greener stores. But our efforts alone won’t be sufficient to improve Japan or the natural environment, so I would like to facilitate this greener store initiative in lockstep with our vendors that make the components of our stores.
The first greener store we built in Japan is the one on the edge of the Wadakura Fountain Park in the Outer Garden of the Imperial Palace, where a water reuse plant called WOTA that supplies water for washing hands is installed. As this example indicates, I intend to constantly learn about progressive products and practices, determine what their social benefits might be, and implement them at our stores as I see fit.
Mr. Yanagi: This might sound very difficult, but I think our role is also to assess the precise energy-conserving performance of each appliance or article we consider implementing, as a matter of standard practice. While the general perception of environmentally conscious activities might entail going to all kinds of trouble to minimize our impacts on nature, we are in a professional position to suggest ideas that are fun and sustainable at the same time. For example, by suggesting using tumblers, we might help our customers improve the taste of their drinks and enjoy communication with our partners more. Unless people get into it through an easy and fun experience, I think promoting better understanding with them would be a difficult task. So the first step might be to allow the customers to become more aware of the sustainability concept through their empirical experiences, and then invite their attention to our greener store initiative. Our environmental ideas might spill over into the local communities, with people taking our environmental store designs and arranging and implementing them on their own businesses, etc. In other words, our setting of an example in terms of renewable energy use and waste reduction, etc. could play an important role in society by making such practices more accessible in many different ways.
Ms. Sugiyama: Concerning waste materials, disposal procedures and circumstances vary across different countries and regions. So even if some types of waste may be 100% recycled in Japan, it might be a globally common practice to dispose of those same materials by incineration. With this in mind, when I was presented with the Greener Stores Framework from the U.S. headquarters and had to arrange it to better adapt to Japan, I broke it down into individual components and modified them one by one, so that they would all fit and blend well with the operational practices and circumstances unique to Japan.
Could you share with us what the specific environmentally conscious features are of Starbucks’s first greener store in Japan?
Mr. Yanagi: The first greener-store-certified Starbucks in Japan − which is named the Kokyo-Gaien Wadakura Fountain Park store − has two significant meanings attached to it, one obviously being the first-in-country certification status, and the other as a sustainability hub for Japan, where a whole range of progressive initiatives for environmental protection will be implemented and tested empirically. While the store also uses renewable energy, its particular focus has been on the waste reduction during the store construction and the selection of materials that were used to build it. For this, we studied the sample cases of two Starbucks locations before the store opening to learn about the different waste materials that would be produced, which of those would be taken to landfills or incinerators, and what could be recycled. Then, we created and implemented this basic rule that we could only use the materials for which appropriate recycling routes were available. Even with the materials that would be difficult to recycle and have to be demolished, we carefully select them by paying attention to how easily they could be demolished or converted into easily recyclable states. While my job at the Store Design Department required me to design a number of stores over the years, I feel like new perspectives have been integrated into my professional repertoire in terms of store development. So all the sustainability ideas that were examined for the opening of the first certified greener Starbucks store in the Wadakura Fountain Park will be reflected in the designs of our new stores also.
Ms. Sugiyama: In the past, we used to change many chairs and other furniture that were still usable and renovate stores for the sole purpose of updating our brand image. But we have adjusted our basic way of thinking since and are trying to make full use of the items that are still usable instead of replacing them right away when they become non-functional or outdated. So it is a major change in our practice that we now pay much attention to minimizing the waste that gets produced in store renovations, while considering how we could utilize any furniture that we replace.
As you source renewable energy across different regions of the country, are there any particular challenges?
Ms. Sugiyama: If renewable energy is considered in terms of how much each municipality can source it, I think the market is still in its early stage of development. So, we are still far from where RE100-compliant electricity supply is available throughout Japan under uniform conditions. Therefore, when we first embarked on our initiative, roughly a half of all municipalities across Japan were unable to source renewable energy at all. So, to address the situation, we contacted and interviewed the employees of the municipalities that were unable to source renewable energy to learn about their related activities, with the hopes that we might be able to obtain some insights into their endeavors through direct local engagement in addition to communicating with the electricity companies. I also discovered that even the prefectures that were thought of as progress in terms of their renewable energy adoption had spots of regions where it was unavailable. In other instances, the prefectural employees that we contacted were helpful enough to consult their local electricity companies for us, due to which the renewable energy supply became available.
Another point worth sharing here is that we encountered so many cases where local communities were eager to adopt renewable energy but could not determine how many people would use it and they lacked the background necessary for making it happen. In the case of major urban areas, because land is scarce, solar panel installation in large quantities might not be feasible, and the circumstances of each local community are unique. In terms of the reduction of greenhouse gas emissions, while CO2 is often talked about, I think the methane gas that is generated by sewage treatment and waste disposal also has a significant impact. While major cities typically experience difficulty generating electricity from solar radiation and hydropower, they employ high-temperature incinerators to dispose of waste due to the concern of dioxins. So we are considering working out such arrangement with them that will allow us to use the bio gasses and the heat emitted from their incinerators as our energy supply.
Also, through our communication with the stores operating in the municipalities that are providing environmental education to their communities concerning recycling, etc., we have started noticing how renewable energy might be adopted there in such a manner that would optimal for them. For example, if a sash manufacturer is looking for a place to build its factory, it might consider many locations with abundant water supply and hydropower capacity from which electricity could be sourced, while there might be other locales where there is too much snow accumulation for it to access solar power, or the winds might be too intense. There are also communities where power plants built during or briefly after the Meiji era have been carefully maintained and are still in use. So, in each of these circumstances, I intend to consider the unique local circumstances and facilitate appropriate sourcing activities. While what I may be able to accomplish alone might not be much, I would like to play my role in ensuring that Japan will remain sustainable for many years to come, while emphasizing the importance of being able to give back to the local communities where we operate our stores.
Do you have any particular points that you pay attention to concerning energy sourcing?
Ms. Sugiyama: I get my ideas from the C.A.F.E. (Coffee and Farmer Equity) Practices, which is Starbucks’s own certification program that involves certain purchasing criteria conducive to ethical coffee sourcing, which is the first of its kind in our industry. While it is more efficient from a business standpoint to bulk-purchase coffee from large plantations in high volumes, Starbucks’s fundamental principles dictate it to procure coffee beans from small-scale farmers that carefully cultivate their plants in order to serve higher-quality brews to the customers, while looking out for the betterment of the local communities and fulfilling other social responsibilities in each of the countries of origin. In other words, if we are to source coffee in an ethical manner, the rest of the items that Starbucks sources ought to be ethical, too, I reckoned. So, from that I got the hint that we might want to source electricity in a similar fashion.
I personally like travelling so I often take trips to many different places and have also been involved in the restoration efforts in the region that was devastated by the Great East Japan Earthquake. Through those experiences, I have realized that within the same prefectures exist subsets of quite diverse local features in terms of climate, environment, culture, history, and how people think and act. So if you observe all these aspects closely, you might recognize that Japan is a highly diverse place in that sense, despite being such a small island nation. Along this line of thinking, if we are to give back to each local community where we open and operate a store, I believe we should select the type of energy from which we source our electricity that is suitable for each location, considering its unique circumstances.
Could you explain about the climate change actions Starbucks has been implementing to address climate change, manifesting as unexpected flooding, extremely hot summers, high winds, etc.?
Mr. Yanagi: As to your question on the flooding, for example, we pay careful attention to assess the presence of any related risks by checking flood hazard maps, etc. before officially deciding on the locations of new stores. Especially when we are planning on opening a new store close to a river, it is our standard protocol to estimate the types of effects that could be caused if the river floods and inundates the store, and how we should obtain evacuation information for our partners and customers. In the case of stores with drive-throughs, as they tend to be out in the suburbs away from any train station or public transport, we stockpile emergency supplies in view of the risk of our partners possibly getting stranded for several days. These procedural changes have been quite remarkable to me.
Ms. Sugiyama: There has been a shift in our operational practice that we should not be as eager as we once were to keep our stores open and operating no matter what, if there are challenging circumstances. As many of our partners care for the stores where they work, we would not want them to be the victims of any disaster if it could be prevented. And if any of our stores should be impacted by a disaster, we want the partners to take action to keep themselves safe first as individuals, instead of prioritizing maintaining their store operations.
As the major typhoons that recently affected us entailed high risks of disasters, we were having discussions about temporarily closing the stores that would be hart-hit. While many of our stores use a lot of large glass windows and walls, which would allow for the viewing of our customers enjoying their coffee, etc. inside, it is a risk factor from a safety perspective. But if we are to err on the side of safety and enclose all our stores with conventional walls, there will be little fun left in terms of café experience. So if we can exercise our prudence to temporarily close at-risk stores, it leads to protecting our customers and partners at our glass-clad store locations. To find our sweet spot between these two extremes, we are constantly reviewing how we should optimize our operations and protocols.
Mr. Yanagi: While it is the region-specific sales departments’ call to temporarily close or keep open any stores under their purview, the head office is also monitoring the information. As the incidence of abnormal weather conditions has become higher than before, our internal processes have been improved to assess all possible risks in advance and take any necessary action as quickly as we should.
Ms. Sugiyama: This is a rather extreme scenario, but if we decide to open a new location and later discover that we are unable to recruit any partners from the local community, we will be in deep trouble. In other words, each store that is successfully operated must have enough numbers of both motivated partners (staff) and willing customers. So, in our approach to store development, I believe we should focus on our partners’ satisfaction with their work environment and treating all people fairly.
Mr. Yanagi: The standards we apply in deciding whether any repair is needed have been changing in details also. For example, the roof above the menu board at each drive-through used to have such a shape that could get damaged by an extraordinarily large typhoon. So we are updating our standards relating to any at-risk store components and disburse capital expenditures as needed to repair any damage caused to our stores, as we won’t be able to keep them open with any present safety concerns.
In the areas that constantly have high winds, we have made it a standard practice to install windshields around the product-handling window at every drive-through. Other changes in such standard practices include installation of an airlock at the store entrance, and such standards as they relate to the drive-through area have been updated every year. We also regularly hear the opinions of partners at each store, conduct case studies based on their input, and implement repairs not only at the store from which the input originated but also at other stores where similar risks are involved. Starbucks is constantly renovating its stores so that uniformly reasonable conditions are maintained across all locations, including fairly old ones.
Are there any particular initiatives being implemented on air conditioning and temperature control at your stores?
Mr. Yanagi: As all of our stores with drive-throughs keep their windows open during summer as customers come and go constantly, the internal temperature often becomes the same as the outdoor temperature. So, when creating an air-conditioning plan for each such store, we make sure to set up the airflow so that the staff working there could remain cool and comfortable as much as possible. I also see increasing instances of gusty winds and other abnormal weather patterns at certain times of the year, which I take to be some effects of climate change.
Ms. Sugiyama: Another example I can provide is about air conditioning. If a store has its air conditioning system set to ecological mode to vary its operation across different hours of the day, the staff won’t be able to fine-adjust the temperature often because they are busy taking care of the customers. To solve this problem, we are testing this idea of creating an automatic temperature adjustment program that does just than at 30-minute intervals based on the current status of electricity.
Mr. Yanagi: In terms of hardware, we already have the temperature management system, which issues an alert each time the temperature exceeds a specified threshold and lets us monitor the temperature data across all stores in real time. While this alert is typically sent to the assigned sales staff in each area, we do monitor the information at the central office also.
Ms. Sugiyama: We also pay attention to implementing appropriate zoning designs, assuming the amount of exercise is different between our partners and customers, resulting in their disparate perception of heat, although the space inside each store is one unbounded open expanse, and the zones cannot be completely separated from one another. Along this line of thinking, we hold our internal discussions thoroughly for our store space planning, such that tradeoffs are made correctly while preserving our essential café qualities, including the set-up that allows our customers to enjoy watching how our baristas prepare their beverages.
Mr. Yanagi: From the perspective of equipment planning, we have separate air conditioning systems at each store, for the customer seating area, the bar, and the back room. More specifically, the air conditioning is set up so that the temperature can be adjusted differently between the customer seating area and the area where the partners work around the espresso machine and other heat sources that tend to run hot. So, if you stand behind the bar where the partners are stationed and take a seat in the customers’ area to feel the difference, you would notice a world of difference in terms of perceived air temperature.
Ms. Sugiyama: The perception of temperature also varies among individuals. So if one partner turns on the air conditioning as she feels it’s too hot, another partner that later comes in to let the first partner take a break might feel it’s too cold. While we should apparently mind to cease our overconsumption of energy, we must also avoid creating a situation where some individuals must endure the temperature that is adjusted much too high or too low for them. To this end, I intend to closely communicate with the manufacturers of air conditioning systems to stay current on their technological innovation and try out any new measures that are feasible.
How do you conduct the maintenance of your existing stores?
Ms. Sugiyama: We do have a well-established program for store maintenance operations. We have been gaining incremental insights also that our overall energy efficiency actually improves if we replace in-store items that have economically or socially deteriorated, as opposed to just discarding them as they must be updated. We have started discussing on the applicability of such approach as we will convert our existing stores into greener stores.
In addition, 100% of our in-store lamps have been switched to LEDs. While we used to have conventional lamps for our signages, etc., they have all been converted to LEDs although no customers likely noticed this. In this way, we are constantly updating and revising our standards even on the parts of the stores that are not so visible. As a result, the specifications of the installed equipment between any recently opened stores and those that opened two years ago are quite different.
Mr. Yanagi: From the perspective of energy conservation, the thermal insulation characteristics of the exterior walls have changed markedly also. While the dimensions of our typical Starbucks store are not large enough to be subjected to the restrictions under the Act on Rationalizing Energy Use, we voluntarily comply with equivalent restrictions in accordance with the Greener Stores Framework and have created such standards applicable to our exterior wall planning and thermal insulation planning with emphasis on energy conservation. For each store that we design that has a drive-through, we ran simulations of all likely conditions that may arise and have established a set of standards enumerating specifications that would provide an optimal level of comfort, such that the customers could stay warm and comfortable while a sound energy balance is maintained.
Another point that we mind is such designing of our stores that can minimize the amount of damage that could be potentially inflicted by typhoons. For this, we review and address each risk factor carefully by implementing outdoor seats that can be put away with ease, minimizing the number of items that could be blown away, fastening those that must remain in position, etc. In addition, I believe it is important to revise our standards such that the stores can be checked quickly after a typhoon blows over and resume their normal operations. This concept also applied to our roof specifications modification and drive-through standard updates. I believe it is essential for us to keep all aspects of our store operations optimized while reviewing and adjusting our standards constantly to adapt to the status of climate change.
Ms. Sugiyama: In terms of energy, I also believe there is still more we can do, especially by taking advantage of our being in Japan. While this concept might be in its developmental phase still, we might be able to get involved in joint projects that are testing local circular economy models, etc. or some other initiatives. As there are so many technologies being developed in Japan that allow for environmental conservation, I am keenly interested in learning about them.
About the 2nd Greener Store in Japan: Starbucks’s Minori-no-sato Togane Roadside Station Store
Mr. Yanagi: At this particular location, we have installed solar panels on the roof and are using the energy generated by them to supply electricity for in-store use partially. They also serve as emergency power supply as long as solar radiation is available. This is not of Starbucks’s own making. Rather, we are working with Togane City and Sanyu Plant Service Co., Ltd., which is a contracted vendor that is recycling the coffee bean pulp for us. So among the three parties, we have executed a comprehensive cooperation agreement and discussed how we could implement sustainable measures together, with the Starbucks store operating at the roadside station. While one of the purposes of the solar panels that are installed atop the store is to supply the electricity for in-store use, the primary objective is to supply power to the local community during emergency events. With this in mind, the three parties consulted each other and decided where to install the solar panels, power outlets, etc. I felt from such experience that the case of this particular store has slightly delivered above and beyond the requirements of the greener store concept. On balance, I think this project has given us so many useful hints that we could consider in our future development of local store designs.
Ms. Sugiyama:Ms. Sugiyama: Concerning solar panel installation, I used to think that the optimal location would be where the climate is temperate, with long solar radiation and moderate winds, like the Seto Inland Sea region suitable for olive cultivation. Then I later found out that olive trees can be also grown in Togane City, which was quite surprising to me. As solar panels are susceptible to typhoons, it is difficult to plan their installation in a location that has high incidences of lightning strikes and intense winds. So all this meant that the climate of Togane City would be highly suitable for our solar panel installation. Furthermore, because Togane City is exposed to little inundation risks and distant from the coastal line, we determined that our installation of the power generation system there would likely not result in any secondary disaster that might involve local people that would come to the area to get electricity. So, instead of systematically installing solar panels at all Starbucks stores and being satisfied with it, I believe it is crucial for us to scrupulously review the unique characteristics of each location, reexamine and verify our decisions, including their ramifications that could affect the local community.
Mr. Yanagi: Before this particular store was opened, we internally communicated to the partners that would be working there some key information about the store’s unique operations, the waste separation rules that must follow, etc. In those sessions, we had the store design staff explain about the types of materials that were used, what measures would be implemented to reduce waste, the rules for sorting and discarding trash, how an improved recycling rate could yield positive results, and so on.
Finally, please share your outlook on the future.
Ms. Sugiyama: Since I believe Japan has such a fascinating culture and its diverse subsets, I would like to share it with a wide range of people I come across, while continuously improving my stock of knowledge that would allow me to create more interesting things, spend fulfilling moments, and achieve happiness ultimately. As I also aspire to bringing about a world full of zero-energy buildings, infrastructure, etc., I intend to expand my information bandwidth that covers not only CO2 and water-related topics but also the rest of the environment and technological advances. I will then use the insights to help solve problems that are associated with local communities and energy. There is this particular phrase that I like, which, in essence, asks the following question: “What if the world becomes a better place with your each purchase of coffee from Starbucks?” I’d be happy if I could play my role in such direction.
Mr. Yanagi: I think Starbucks’s key strength is its engagement capacity that is exercised one store at a time. So we are adept at conducting activities that are conducive to building connections with the local communities, and have the local people use our stores as their own. As we operate stores across Japan where we can communicate and spread our positive ideas and practices, and we have our partners that could learn them and disseminate them further, I believe we could do something highly impactful that could help transform Japan for the better even. Put differently, I think we could be instrumental in showcasing our greener stores’ standard development practices, other sustainable initiatives, reusable item creation, etc. at each of our stores nationwide, and widely spread the adoption of our model and similar ones. To make such approach possible, I remain committed to implementing more exemplary initiatives in my professional capacity.
(Posted on December 6, 2022)
