Apple Asks Suppliers to Decarbonise Operations; New Solar, Wind Energy Investments in Europe Announced

Apple said on Tuesday it would make fresh investments to set up solar and wind projects in Europe and called on its suppliers to decarbonize operations related to the production of iPhones and other products.

The company in 2020 had pledged to remove carbon emissions from its entire business, including products and its sprawling supply chain - which spans from Vietnam to Brazil - by 2030.

The iPhone maker will now require its supply partners to report on progress on carbon neutrality goals, specifically, Scope 1 and Scope 2 emissions reductions, related to the production of Apple products and will audit their progress annually.

More than 200 suppliers, representing 70 percent of Apple's direct manufacturing spending and including Corning, Nitto Denko, SK Hynix, STMicroelectronics, TSMC, and Yuto, have committed to using clean power such as wind or solar for all Apple production, Apple said.

Apple had previously asked suppliers to commit to 100 percent renewable energy for Apple's production.

"We're determined to be a ripple in the pond that creates a bigger change," Chief Executive Officer Tim Cook said. Apple has been carbon neutral for its global corporate operations since 2020.

Many multinational companies are increasingly looking into global supply chains to reduce their carbon footprint as climate change becomes a bigger focus for investors and regulators.

Apple said the European investments are part of a strategy to address about 22 percent of its carbon footprint coming from the electricity customers use to charge their devices.

With the construction of new projects in Europe, the company is aiming to power all Apple devices on the continent with low-carbon electricity, it said.

In total, the planned investments will add 3,000GWh per year of new renewable energy on the grid, Apple said.

© Thomson Reuters 2022