Governance Executive Compensation Tied to ESG Performance Stakeholder Engagement In FY21, we incorporated a new set of measurements into our executive Our ESG goals are formulated based on a comprehensive stakeholder review compensation programs focused on sustainability and building inclusive and process which includes materiality review and analysis and identifying diverse teams, which resulted in the increase of the individual performance business critical issues. By actively engaging both internal and external factor (IPF) of the Annual Incentive Bonus Plan from 30% to 50% of the overall stakeholders in this process, we ensured our strategy and goals are targeted payout calculation. Ten percent of the overall bonus payout calculation for to key areas allowing us to have the greatest impact and create positive Starbucks senior vice president and above population is tied to Starbucks outcomes. This process includes direct outreach, public forums and industry planet-positive results which aligns to our vision of giving back more than working groups, and we will continue to leverage these channels on an we take from the planet, as well as ensuring the sustainability of coffee and ongoing basis. other materials which are paramount to our business operations. Another ten At the local level, operations teams, including our regional, district and store percent of the overall bonus payout calculation is tied to creating an inclusive managers are available and often actively engage local stakeholder questions environment where everyone belongs, because the strength, diversity and or concerns. If an issue goes beyond the scope of their responsibilities, they inclusiveness of our workforce drives our success as a global brand. escalate it to the Starbucks Support Center (headquarters). Any issues related to ESG matters referred to the Global Social Impact and Global Public Policy Responsible Tax Policies team for response or further action. As a responsible business, we manage our global tax responsibilities in keeping with our mission and values. Our approach to tax aims to align with Political Expenditures the needs and long-term interests of our various stakeholders - including Starbucks is committed to being actively involved in the communities governments, shareholders, partners and the communities where we operate we serve. This commitment extends to our approach to public policy. We and source products. To achieve this, we work to implement several guiding believe we have a responsibility to advocate policies that support the principles: health of our business, our partners and communities we are part of. In an • We always consider the company’s corporate and social responsibilities, effort to better communicate these activities, Starbucks adopted a policy to brand and reputation when considering tax affairs. provide more transparency about our corporate political contributions and • We aim for our tax affairs to be sustainable and equitable, and we expenditures. We believe this policy serves Starbucks interests in promoting recognize the importance of tax systems in helping governments fund public policies of concern to the company and educating elected and public policies and programs to meet the needs of their communities and officials about our business, while providing important information to our residents. partners, customers and shareholders. Starbucks is committed to conducting business ethically, with integrity and in accordance with the law. Part of that • We engage with all tax authorities in an open, transparent and respectful commitment includes compliance with rules, regulations and standards manner. governing our interaction with the government, including our disclosure and • We support initiatives to improve transparency on tax matters, including accountability regarding political contributions and expenditures. Organisation for Economic Co-operation and Development (OECD) measures on country-by-country reporting and automatic exchange of information. • We comply with the financial and tax related disclosure and transparency requirements of the U.S. Securities and Exchange Commission (“SEC”), as well as other government institutions that require financial and tax reporting in each jurisdiction where we have operations.