In May 2016, Starbucks, the Seattle-based coffee chain, announced that it had closed an offer of $500 million in bonds to fund sustainability projects. The move was made to “fund programs that ensure coffee is grown and distributed in a way that can be maintained over the long run.”
Companies such as Starbucks are realizing that building out a sustainable supply chain is critical to achieving meaningful impact on their goals. The use of these bonds brings needed capital to help suppliers implement practices now that will have a long-range return for Starbucks. Sustainability bonds allow investors to directly support a sustainability agenda, and based on the popularity of this first issuance, there may be more to come.
Starbucks: Starbucks Issues the First U.S. Corporate Sustainability Bond
Bloomberg: Starbucks Raises $500 Million with Its First Sustainability Bond
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Additional Contributing Author: Freedom David
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