What happened
Shares of Starbucks (SBUX 0.47%) climbed on Monday, surging as much as 4.9%. As of 1:11 p.m. ET, the stock was still up 4.2%.
While the upbeat market sentiment no doubt contributed to the move, the company-specific catalyst that sent the coffee purveyor higher was a bold move by Starbucks that could pay lasting dividends to the planet -- and shareholders.
So what
In a Starbuck Stories blog post, the company announced plans to reduce waste via an innovative reusable-cup program, with plans to shift entirely to reusable cups by 2025. This is part of a broader move to reduce its waste by 50% by 2030.
Image source: Starbucks.
Starbucks has been piloting a reusable-cup plan in six markets worldwide. By the end of 2023, customers will be encouraged to use their own personal, reusable cup at locations throughout the U.S. and Canada, whether they use the café, drive-thru, or mobile order and pay. To that end, Starbucks continues to test its "Borrow-A-Cup" program in the U.S., Japan, the United Kingdom, and Singapore and will launch the program in more countries over the coming year.
Single-use cups represent roughly 20% of the company's worldwide waste, while the combination of the cup and lid boost that total to about 40%. Making a dent in that total will not only keep these cups out of the landfill, but could also help reduce the costs associated with throwaway beverage containers.
The company is also testing new technologies and customer incentives in conjunction with its pilot plan, including cup-washing stations on the counters at its cafés.
Now what
Finding an innovative solution to disposable cups will ultimately be a good move for Starbucks and the environment. It's estimated that the company goes though roughly 7 billion one-use cups annually.
This isn't the first time Starbucks has bucked the status quo in an effort to be more environmentally friendly. The company previously did away with plastic straws in favor of its "sippy-cup" style lids, which are fully recyclable.
