• by Tanya Gazdik , August 26, 2024

Starbucks CEO Brian Niccol is under fire for his plans to travel back and forth via private jet between his California home and the company’s Seattle headquarters. 

The perk “has brought some attention to the climate change implications of those flights and Starbucks’ projection as an environmentally friendly business, which recently rolled out new cups that use less plastic and eliminated plastic straws,” according to CNN Business. “Jet travel, whether via large commercial jet or small private jet, is a major source of carbon emissions, responsible for about 800 million tons of carbon dioxide annually or more than 2% of total global energy-related emissions, according to the International Energy Agency..”

On Friday, Greenpeace posted on social media that the arrangement is “unacceptable” and included a link to a petition to ban private jets. 

“Starbucks’ commitment to helping its new CEO commute thousands of miles regularly has raised the alarm for environmental activists, especially since Starbucks has recently announced new operational sustainability commitments, including solar power projects and a second returnable beverage cup pilot program in partnership with NextGen,” according to Nation’s Restaurant News.

To accommodate this regular commute of approximately 1,200 miles each way, Niccol will be “eligible to use the company’s aircraft” to travel back and forth between Newport Beach and Seattle both for work and for personal travel “up to a maximum amount of $250,000 per year, which amount will be based on the aggregate incremental cost to the company,” according to Starbucks’ offer letter to Niccol, in a document that was posted to the United States Securities and Exchange Commission.

Dan Coatsworth, an investment analyst at AJ Bell, told the BBC that Niccol "on paper" was being given the "same hybrid working terms as other office-based employees, as one might expect.”

"However, what leaves a sour taste is the idea he can use a private jet to nip 1,000 miles between California and Seattle," he added.

Coatsworth said while using a private jet was not only bad for the environment and would send a bad message to customers and staff, it was also "ultimately not a practical way to run a $105 billion business with an estimated 400,000 employees.”

Ultimately, consumers are not fans of hypocrisy when it comes to a company promoting sustainability and environmentally conscious business practices, while allowing the use of a private jet. 

“Consumers seem to care about these things more these days than before,” Ran Duchin, a finance professor at Boston College, tells The New York Times. “You’re buying a narrative. You’re not just buying the coffee. This is an implicit stand on issues like sustainability.”