At Starbucks, we've always been committed to working alongside ‘communities to help people thrive and protect the planet. Since the introduction of our first Caffé Latte in 1984, cow’s milk has been an integral ingredient for the company. As s company that works with and relies on the farming community every day, we have responsibility to help drive solutions toreach our resource positive goals, support farmers and help ‘ensure a sustainable future of dairy. Collaborating wth farmers to help support a sustainable future is work we've done before. Just a with our coffee, Starbucks goals for the dairy we buy to be produced under high quality and responsible practices Starbucks Sustainable Dairy Program Toward that effort, in 2022 Starbucks launched its Sustainable Dairy Program in the United States, designed to advance environmental stewardship, help enhance farmer and workforce conditions, and help ‘ensure the quality care of animals, The program provides farmers with tools and information to help ensure a more sustainable dairy industry for future ‘generations, including: * Financial incentives fr continuous improvement in the areas of environment, workforce and animal care,as well as annual cost-share funding to support implementation of practices that reduce greenhouse gas emissions like methane. * Technical support and assistance specific to carbon and water footprint reduction that will help solve priority issues for dary farms and communities. For example, in California, Starbucks invested in water meters for farms to help monitor water use and set water reduction goals. * Workforce traning in partnership with Dairykind to improve animal handling and reduce on-farm injuries and incidents * Self-assessment toolsin partnership with the Equitable Food Initiative to provide management systems support that help dairies elevate a ‘culture of continuous improvement while providing their workforce ‘with stable and professional working environments. Kathryn, a farmer enrolled inthe Starbucks Sustainable Dairy Program, shares the sustainable practices her family uses on thei farm in calfornia,stanguens STORIE avews PEOPLE PLANET COFFEES CRAFT PRESS CENTER » In 2020, Starbucks joined the US. Dairy Net Zero Initiative (NZI), a partnership of the US dairy community working to accelerate industry- wide progress toward achieving greenhouse gas neutrality and improvements in water conservation and quality on farms. Through NZI, Starbucks partners directly with farmers in our supply chain ‘and has committed to invest $10 million toward the research and implementation of new practices in feed production to manure management, nutrition and on-farm energy efficiency with the goal providing farmers with technology and environmental practices. ‘An example of how this partnership comes to life isa pilot with Alliance in Florida implementing a ful ‘across several workstreams to demonstrate outcomes that are economically viable and sustainable with the potential to eliminate up to e of technologies and practices 25% of feed loss, reduce carbon, increase renewable energy and decrease diesel use, The learnings from this pilot will be shared to help more farmers and support impact at scale. Q SachSTORIES PRE puaner —corseEacnat ness cen ~ os In partnership with the Universit of Florida, NZI is conducting an enteric methane study determining the ability of daily eed intake and enteric methane emissions measurement to detect reductions in methane production expected from utizing a feed adcitive called Rumensin, Additional feed additives are also being vetted for testing to increase the options available fr farmers. Results from this work will help to ensure that enteric mitigation practices are effective and economical in a controlled research environment before applying these practices on the farm.