# Environmental Progress ## Behind every # Report ## Apple product is a plan for ## the future Covering fiscal year 2022 Apple APR-cover-toc\_image-NEW-noshadows-OPT1.jpg * * * Contents Introduction Letter from Lisa Jackson Report highlights Our environmental strategy Goals Climate Change 8 Goals and progress 9 Our approach 14 Low-carbon design 17 Energy efficiency 20 Clean electricity 26 Direct emissions abatement 27 Carbon removal Resources Goals and progress Resources 32 Goals and progress 33 Our approach 34 Materials 48 Water 52 Zero waste Smarter Chemistry 57 Goals and progress 58 Our approach 59 Mapping and engagement 62 Assessment and management 64 Innovation Engagement and Advocacy 68 Our approach 68 Listening 69 Achieving change together 71 Supporting communities Appendix 76 A: Environmental data 85 B: Corporate facilities energy supplement 94 C: Supplier Clean Energy Programme supplement 99 D: Assurance and review statements 108 E: Environment, Health and Safety Policy 110 F: ISO 14001 certification 112 Report notes 113 End notes * * * Reflections Lisa Jackson Vice President, Environment, Policy & Social Initiatives Apple is on a journey to 2030. In 2020, we reached carbon neutral for our corporate operations, but we always knew we could do more. So we set an even more ambitious goal — to make our products carbon neutral by 2030, across our entire supply chain and the lifetime energy use of our customers’ devices. Teams across Apple quickly got to work, and thanks to their innovations, we’ve made extraordinary progress. This was also the year we called on our suppliers to accelerate their work to address their emissions. We’ve sent a clear message that the companies who manufacture our products must decarbonise their entire Apple footprint by 2030, including the use of 100 per cent renewable electricity. And today, over 250 of our suppliers — accounting for over 85 per cent of Apple’s direct manufacturing spend — are a part of our Supplier Clean Energy Programme. packaging around your Mac. We’re transforming so many aspects of the way we make our technology, and with our Product Environment Reports, you’ll see where we’ve made progress and where the hard work remains. One thing is clear: we’re closer than ever to the day you can hold your Apple device and be confident in the knowledge that it has net-zero carbon impact. There are few companies that can make that claim — let alone ones that set our high standards and transparently show their progress along the way. As we move closer to our goals, we’ve continued to push the pace by bringing new clean energy online to power our supply chain. And we’re investing in a growing number of renewable energy projects to balance the electricity our customers use to charge their devices. Equity remains a central focus of our investments in clean energy and green technology. We continue to grow our Impact Accelerator, which invests in the next generation of innovative, diverse entrepreneurs in fields like clean energy, recycling and green chemistry. We’ve also expanded our Power for Impact programme, which brings renewable projects to communities around the world — from neighbourhoods in rural South Africa to under-resourced schools in the Philippines. We believe the best way to fight climate change is to engage communities on their front lines, and every day, we put the action to those words. Recycled materials are also a key focus of our innovations, and another way we’re driving down our emissions. Today, about 20 per cent of the materials in our products are from recycled or renewable sources. Our goal is to one day reach 100 per cent, and to end our reliance on mining altogether. Where we continue to extract materials, we maintain the highest standards in our due diligence and respect for human rights. And we’re accelerating our work with new goals to use 100 per cent recycled cobalt, tin, gold and rare earth elements in key components by 2025. The strides we’re making play a huge role in driving down our emissions even further, reducing our reliance on energy-intensive mining, smelting and refining. show our work, because we want to be the ripple in the pond that creates I’ve worn a few different hats over my career — including as Administrator of the US Environmental Protection Agency, and leading this work at Apple. It’s taught me that tackling climate change is possible only when we bring government, industry and communities together. We have to meet a global challenge with global solutions — solutions that centre on people. I have so many talented, passionate colleagues who share in this mission. Thanks to their tireless work, we’ve hurdled barriers that once seemed impossible to clear. We have no illusions about the challenges ahead, but whatever comes, we’ll keep marching forward. Apple is on a journey — and we’ll share the road with as many people as we can. We hope you’ll join us. Lisa Jackson * * * Report highlights Throughout 2022, we’ve achieved progress across our environmental goals as an organisation. Our employees, suppliers, industry partners and other stakeholders have each played an integral role in helping us to reduce our impact, create equitable solutions, and drive broader change across industries and our communities. These efforts have yielded positive results across our business. And where we’ve encountered challenges, we’ve also identified opportunities to continue to make a difference. Carbon neutral for corporate emissions Since April 2020, we’ve achieved carbon neutrality for our corporate emissions1 by sourcing 100 per cent renewable electricity for Apple facilities, implementing energy efficiency, and securing high-quality carbon offsets for remaining emissions. While corporate emissions represent only a small portion of our overall emissions, this is an important step towards our broader goal of achieving carbon neutrality for all our products. Read more on page 13. Read more on page 7. We reduced our overall emissions across scopes 1, 2 and 32by over 45 per cent compared with our 2015 baseline year. We avoided over 28 million tonnes of emissions through reduction initiatives like transitioning our supply chain to renewable electricity and sourcing recycled content for our products. Reduced value chain emissions by over 45 per cent In October 2022, we urged our worldwide supply chain to decarbonise their entire Apple-related footprint by 2030, including their scope 1 and 2 emissions associated with Apple production. We also communicated that progress towards these goals will be a crucial part of the criteria we consider when awarding future business. Read more on page 19. Read more on page 19. Read more on page 27. Committed an additional $200 million to nature-based projects In 2023, Apple announced a commitment of additional funds — up to $200 million — to expand the Restore Fund to be managed by Climate Asset Management, a joint venture between HSBC Asset Management and Pollination. The new investment will broaden the portfolio of nature-based projects, including agricultural and agroforestry projects, that scale up carbon removal while aiming to achieve a financial return on investment. Introduced our comprehensive water strategy This year, we’ve evolved our existing water stewardship strategy into a holistic, enterprisewide approach that addresses water availability, quality and equity. Our five-pillar approach is grounded in understanding the local conditions of the watersheds in which we operate. Read more on page 48. Read more on page 48. Increased our use of recycled materials Reduced plastic content in packaging In 2022, plastics accounted for only 4 per cent of our packaging — down from 21 per cent in 2015 — marking significant progress towards our goal to eliminate plastics from our packaging by 2025. Read more on page 39. Read more on page 66. Drove the creation of a new standard for green cleaners The Green Chemistry & Commerce Council awarded Apple the 2022 Impact Award for our commitment to sustainable chemistry and the transparency we’ve demonstrated in our smarter chemistry goals and progress. In 2022, Apple continued to serve as chair of the Green Cleaners for Electronics Manufacturing task group — along with more than 20 industry partners — and submitted the draft version of IPC-1402, Standard for Green Cleaners Used in Electronics Manufacturing, for public review. This new standard will help suppliers across the electronics supply chain select cleaners that are safer for employees and the environment. Advanced the Impact Accelerator * * * Our environmental strategy The environmental challenges we face today are significant, and we’re responding with urgency and innovation. We approach our work by focusing on fundamental questions. What matters most? And where can we make the greatest impact? These questions — and the data underlying their answers — guide our work across our strategic pillars of climate change, resources and smarter chemistry. We know we’re not alone in working to reduce our environmental footprint. So we’re engaging with others to support our efforts and find opportunities to move our industries forward. Climate Change We’re already carbon neutral for our corporate operations, and we’ve set a goal to become carbon neutral for our entire product footprint by 2030. We plan to get there by reducing our emissions by 75 per cent compared with 2015, then investing in highquality carbon removal solutions for the remaining emissions. Low-carbon design Energy efficiency 4 Clean electricity Direct emissions abatement Carbon removal Direct emissions abatement Smarter Chemistry We aim to make durable, long-lasting We aim to make durable, long-lasting We aim to make durable, long-lasting products and packaging using only recycled or renewable materials, as recycled or renewable materials, as well as enhance material recovery. At the same time, we’re committed to stewarding water resources and recycled or renewable materials, as well as enhance material recovery. At the same time, we’re committed to stewarding water resources and to stewarding water resources and to stewarding water resources and sending zero waste to landfill. sending zero waste to landfill. Engagement and Advocacy Materials Water Zero waste * * * Goals Highlight We’ve reduced the emissions across our value chain by over 45 per cent since 2015. We create products and services to enrich the lives of our customers. And we strive to do so in a way that sustains the ecosystems and resources that we all depend on. Setting ambitious goals is essential to this — to drive the innovation and collaboration that make change possible and to be transparent about and accountable for our progress. Achieve carbon neutrality for our entire carbon footprint by 2030, and reach our emissions reduction target5 Resources Use only recycled and renewable materials in our products and packaging, and enhance material recovery Eliminate plastics in our packaging 6 by 2025 20 per cent of all materials shipped in products in 2022 came from recycled sources. Smarter Chemistry Reduce water impacts in the manufacturing of our products, use of our services and operation of our facilities Drive comprehensive reporting of the chemicals used in our supply chain to make our products Avoid exposure to chemicals that could be harmful to human health or the environment * * * Introduction **Climate Change** Resources Smarter Chemistry Engagement and Advocacy Appendix 2023 Environmental Progress Report7 ## We aim to make all our products carbon ## neutral by 2030 # Climate Change * * * Goals and progress Become carbon neutral for our corporate operations. since April 2020 by implementing energy efficiency initiatives, sourcing 100 per cent renewable electricity for Apple facilities, and securing carbon offsets for the remaining corporate emissions. Transition our entire product value chain, including manufacturing and product use, to 100 per cent clean electricity by 2030. As of March 2023, over 250 suppliers have committed to transitioning to 100 per cent renewable electricity for their Apple production, with over 85 per cent of Apple's direct spend for materials, manufacturing and assembly of our products worldwide included in those commitments. * * * Our approach Climate change continues to define the world around us in ways that impact our daily lives. Shifting weather patterns threaten the food we eat. Widespread wildfires and flooding devastate the communities we live in and the ecosystems we depend on. These dangers are felt around the globe and are developing at an unprecedented pace. The stakes are fundamental: human rights like life, health, food, and an adequate standard of living face grave risks, disproportionately affecting low-income and historically marginalised communities. The worst, and potentially irreversible, impacts of climate change can be prevented with global, comprehensive and immediate action. As a large global company, we believe it’s our responsibility to take strong, decisive and inclusive steps to mitigate our impact on the climate. We’ve committed to achieving carbon neutrality across our entire value chain by 2030 — reducing emissions by 75 per cent compared with 2015 and balancing the residual emissions with high-quality carbon removal. This means that our goal to 7 be carbon neutral also extends to all our products. This goal is more aggressive than the Intergovernmental Panel on Climate Change’s recommendation for global carbon neutrality within 20 years.8 Apple is also committed to working towards reaching a 90 per cent reduction in emissions from our 2015 baseline by 2050. Attaining this deep decarbonisation target will require a different focus and a collective, global effort. Entire industries and economies must decarbonise. And while reaching a 90 per cent reduction in emissions is outside Apple’s or any one company’s control, Apple is committed to supporting action as part of this global shift: to push for better policies, invest in new technological innovations, and engage in new and expanded partnerships, both public and private. Our goals are ambitious — and they come with many challenges. But we’ve already made progress by cutting emissions across our value chain by over 45 per cent since 2015. We began by making the transition to sourcing 100 per cent renewable electricity at our offices, retail stores and data centres, which we achieved in 2018. And in 2020, we achieved carbon neutrality for our corporate emissions.9 Our philosophy for achieving carbon neutrality follows these principles: Calculate our footprint across our value chain: Our responsibility extends beyond our direct operations to our product-related emissions. That’s why we model our emissions across the entire life cycle of our products — including the sourcing of raw materials, manufacturing, shipping, product use and end-of-life processing.10 We use the results of our detailed carbon accounting to adjust our 2030 Climate Roadmap, which lays out our plan to become carbon neutral. Set ambitious targets: Our plan to reach carbon neutrality by 2030 centres around our strategy to reduce emissions by 75 per cent, relative to our 2015 carbon footprint. This reduction aligns with what current climate science shows is necessary to limit warming to 1.5° C.11 We plan to invest in high-quality carbon removal projects to address the remaining emissions, prioritising naturebased solutions. And by focusing on emissions reduction, we’re tackling the transformative work of making low-carbon products. Match solutions to sources: For each activity within our value chain, we seek out decarbonisation actions that tie to the source of those emissions. For example, we’ll look to reduce emissions from electricity by using renewable or low-carbon electricity, and decrease emissions from transportation by using alternative fuels and lowercarbon modes of transport. By matching solutions to carbon sources, we’ll do our part to help decarbonise the economy. $4.7B Make environmental progress good for our business: We’re proving every day that there doesn’t need to be a trade-off between what’s good for the planet and what’s good for business. This means that we seek out climate solutions that are cost competitive, offer a financial return, benefit our customers, or achieve more than one of these outcomes. For example, we’re working with investment managers who are creating investment funds for clean energy and nature-based carbon removal solutions, which aim to deliver both environmental benefits and neutrality by 2030 centres around our strategy to reduce financial returns. And when we design products to be energy efficient and use recycled content, we view these as product features that add value for our customers. By underpinning our climate strategy with strong business We plan to invest in high-quality carbon removal projects principles and innovation, we aim to harness the power of markets to replicate our solutions at scale, creating the based solutions. And by focusing on emissions reduction, impact necessary to meet global reduction targets. * * * Our 10-year Climate Roadmap addresses Apple’s carbon footprint through five pillars: Low-carbon design Design products and manufacturing processes to be less carbon-intensive through thoughtful material selection, increased material efficiency and greater product energy efficiency. Energy efficiency Increase energy efficiency at our facilities and in our supply chain by finding opportunities to reduce energy use, such as retrofitting outdated or inefficient equipment and systems. > 75 per cent > emissions reduction Clean electricity Transition our entire product value chain — including manufacturing and our customers’ use of our products — to 100 per cent clean electricity by 2030. Direct emissions abatement Reduce direct greenhouse gas emissions in our facilities and our supply chain through process innovation, emissions abatement and moving away from fossil fuels. Carbon removal <25 per cent of footprint Explore all solutions: Reaching our 2030 carbon goal will require scaling proven solutions that are available today, as well as exploring the solutions of the future. This includes facilitating the development of new technologies, like direct carbon-free aluminium smelting, adopting novel financial approaches such as the Apple Restore Fund, advancing policies that support a low-carbon economy, and continuing to invest in research and development to enable decarbonising our products by 2030. Be open: We’re committed to disclosing our carbon footprint as well as our climate strategy and progress. By sharing our approach, we aim to send clear signals to others and invite them to work with us. We also hope to empower our peers in their pursuit of carbon neutrality and engage investors through financing options, such as green bonds. This means sharing both challenges and successes. Our annual Environmental Progress Reports, as well as our response to the global disclosure non-profit CDP, provide details on our progress. * * * Apple’s comprehensive carbon footprint efforts to reduce Apple’s emissions. In 2022, our environmental programmes avoided over 28 million tonnes of emissions across all scopes. Initiatives that we’ve been growing for years — that we’ve been growing for years — like sourcing 100 per cent renewable like sourcing 100 per cent renewable electricity for our facilities, transitioning suppliers to renewable energy and using low-carbon materials in products — have yielded clear results. Thanks to this work, we’re decoupling 45 per cent. 20.3 million TONNES net carbon emissions\*\* - Low-carbon materials represents emissions savings from transitioning to recycled materials in our products, or use of low-carbon aluminium, as described on page 14. \\*\\* Net carbon emissions represents our total gross footprint minus carbon offsets applied to each category. Percentages shown for each emissions category represent the share of Apple’s gross footprint. Totals add up to more than 100 per cent due to rounding. † Starting in fiscal year 2022, we’re including transmission and distribution losses as part of scope 3 emissions, which are matched with renewable electricity. ‡ Starting in fiscal year 2022, we’re incorporating emissions associated with employees working from home as part of Apple’s new hybrid work model, as well as emissions from third-party cloud services — the electricity from both of which is addressed using renewable energy. * * * Progress towards net-zero emissions Our plan to become carbon neutral by 2030 centres around a 75 per cent emissions reduction target compared with our 2015 footprint. We’ve already reduced our gross carbon footprint12 by over 45 per cent since 2015. And we plan to address residual emissions through high-quality carbon removals. (million tonnes CO2e per fiscal year) * * * Carbon neutrality for our corporate emissions Since April 2020, we’ve been carbon neutral for our corporate operations, including direct emissions (scope 1); indirect emissions from purchased electricity, steam, heat or cooling (scope 2); and emissions from business travel and employee commuting (scope 3). In 2022, we expanded the scope 3 emissions we include in our corporate footprint and are now also carbon neutral for work from home, third-party cloud services, electricity transmission and distribution losses, and upstream impacts from scope 1 fuels. To reach neutrality, we focused on driving energy efficiency improvements and transitioning our facilities to 100 per cent renewable electricity, which we achieved in 2018. These programmes have reduced our scope 1 and scope 2 emissions by 67 per cent since 2011, when we first began procuring renewable electricity, even as our business grew. We’ve addressed the remaining scope 1, 2 and 3 emissions (for a total of 324,100 tonnes) by securing high-quality carbon credits from projects that protect and restore forests, wetlands and grasslands. Measuring our footprint We account for our carbon footprint by following internationally recognised standards, like the World Resources Institute (WRI) Greenhouse Gas Protocol and ISO 14040/14044. For our corporate footprint, we calculate emissions based on consumption data when available; when it’s not available, we rely on reasonable assumptions and methodologies to estimate emissions, which we revisit and improve on regularly. For our product hardware carbon footprint, we use a life cycle–based approach. Apple-specific data drives many of our most critical calculations; in cases where that data isn’t available, we rely on secondary sources, including industry - We’ve reduced corporate emissions through energy efficiency, renewable electricity and low-carbon fuels, and we’re applying carbon offsets to the remaining emissions. Evaluating climate risks In 2020, we conducted a climate scenario analysis to help us better understand the potential physical and transition effects of climate change. To align with the Task Force on Climate-related Financial Disclosures (TCFD) recommendations, we considered a range of future scenarios, including a scenario below 2° C. Our assessment had a global scope to capture all our corporate facilities — including offices, retail locations and data centres — as well as 200 supplier facilities, based on spend. The analysis highlighted how our renewable energy programme and carbon neutrality goals could contribute to our corporate resilience. It also provided environmental data that we considered when developing business strategies, including around supply chain diversification, and when safeguarding our global assets. The results of the scenario analysis contributed to a larger body of internal assessments on the physical and transition impacts of climate change on our business. Corporate Emissions (having already reduced scope 1 and 2 emissions by 67% since 2011\*) carbon neutral for our corporate operations * * * Low-carbon design Each Apple product represents an opportunity to reduce our carbon footprint — even small changes can yield significant results. Our carbon footprint helps us identify opportunities to reduce the carbon intensity of our product designs. We prioritise the materials and components that account for significant portions of our carbon emissions. This means that the choices we make product by product can scale towards reducing our overall footprint. These priorities inform our work to design for material efficiency and increased use of recycled and renewable materials. Improving material and manufacturing efficiency Less means more when it comes to our approach to materials and how we process them. Making our manufacturing processes more efficient creates less waste and helps us make the most of the materials we source. We’re also working to design our products so they require less material in the first place. Combined, these efforts help reduce emissions from transporting and processing materials. And as we progress towards our 2030 carbon neutrality goal, we continue to investigate new materials and new ways to manufacture efficiently. We’ve continued to improve the carbon efficiency of the integrated circuits that we use in our products — components we’ve prioritised because they’re carbonintensive. Integrated circuits perform vital functions in electronic devices but require significant energy to manufacture. We also continued our work with the sustainable semiconductor technologies and systems research programme of imec, a world-leading research and innovation hub in nanoelectronics and digital technologies, of which we were the first public company to join in October 2021. Our goal in collaborating is twofold: to improve the data associated with integrated circuit production, from end to end, and to use improved data and shared expertise to identify carbon reduction opportunities for the entire integrated circuits industry. And we keep investigating new opportunities for improved efficiency across our product manufacturing processes. In 2022, we continued to invest in research and development projects aimed at creating less waste in processing materials, reducing machining time and associated energy use, more efficiently transforming material into the shapes we need, and maximising recovery and reprocessing of manufacturing scrap. Once these improved processes are successfully developed, we plan to work with our suppliers as they deploy them at scale at our supplier facilities. Using recycled materials to lower our product carbon footprint Materials selection is another way to reduce the carbon footprint of our products. Our strategy is to transition to materials manufactured using low-carbon energy and recycled content. We’ve prioritised the materials and components that make up a large part of our product carbon footprint to move us closer to our goal of product carbon neutrality. And to accelerate collective efforts, we signed on to the First Movers Coalition’s near-zero emissions primary aluminium commitment for 2030 (see more on page 26). * * * Climate Change Resources Smarter Chemistry For products shipped in 2022 that had enclosures made with primary aluminium, we prioritised the use of aluminium smelted using low-carbon sources of electricity rather than fossil fuels, for a lower carbon impact. We also shipped iPhone SE enclosures that contained ELYSIS aluminium, which was smelted without generating greenhouse gas emissions (see page 26 for more information). We also continue to make progress in how we source recycled aluminium. Our first priority is to recover any of our own scrap at high quality. Then, to augment this, we look to other post-industrial and post-consumer sources for high-quality recycled aluminium, which emits less carbon than newly mined materials. And we’re expanding our sourcing to include post-consumer recycled aluminium from building and construction scrap that meets the high standards that our products require. These emissions reduction efforts have reduced our aluminium-related emissions by 71 per cent since 2015 and now represent less than 8 per cent of our product manufacturing footprint, compared with 27 per cent in 2015. 71% In 2022, we began shipping products with certified recycled steel and expanded our use of certified recycled gold — two materials that typically have significant carbon footprints. We introduced certified recycled steel for the first time in the MacBook Air with M2 chip, which has 90 per cent recycled steel in the battery tray. And we significantly expanded the use of certified recycled gold in our products — from the gold plating on the main logic board on iPhone to other product main logic boards and flexible printed circuit boards — increasing recycled gold content from 1 per cent in 2021 to approximately 4 per cent across all product lines in 2022. * * * Driving product energy efficiency Product energy use accounts for 24 per cent of our gross carbon footprint — and it has an impact on the individual energy use of each of our customers. This is why we’ve set aggressive targets to reduce our products’ energy usage. We approach this challenge in the earliest phases of design, taking a holistic view of each product — from how efficiently the software operates to the power requirements of individual components. With each generation of products, we strive to improve energy efficiency. For example, the transition to Apple silicon on Mac devices continues to drive these improvements. The latest generation of our Pro chips is enabling more Mac devices to run with improved energy efficiency. For example, MacBook Pro with M2 Pro and M2 Max made significant progress in reducing energy use in 2022, and the new Apple TV 4K is designed to minimise its impact on the environment, using nearly 30 per cent less power than the previous generation while achieving more powerful performance.13 The efficiency gains of the A15 Bionic chip eliminate the need for an internal fan, resulting in a more compact design and contributing to a 25 per cent reduction in carbon footprint over the previous generation. Through our energy efficiency improvements, we’ve cut overall product energy use across all major product lines by more than 70 per cent since 2008.14 And Apple products are consistently rated by ENERGY STAR, which sets specifications that reflect the 25 per cent most energy-efficient devices on the market. In 2022, all eligible Apple products received an ENERGY STAR rating for superior energy efficiency.15 They also met the requirements for EPEAT registration,16 another environmental rating system for electronic products, which considers energy efficiency and a number of other environmental topics. Product energy efficiency Over the course of a year, Mac Studio uses up to 1,000 kilowatt-hours less energy than a high- 18 end PC desktop. iPhone 14 uses 57 per cent less energy than the US Department of Energy’s requirements for battery 19 charger systems. * * * Energy efficiency Our energy efficiency goals extend well beyond our products. We’re focused on using less energy across our operations, beginning with how we design, operate and maintain our facilities. And we continue these same efforts into our supply chain. Energy efficiency is also essential to meeting our 2030 carbon neutrality goal. So we track and monitor energy use across our operations and supply chain, conducting audits to find opportunities to work more efficiently. And we view our energy use holistically, from the point of design to the point of manufacture. Operating Apple facilities efficiently Existing buildings: There are significant opportunities to save energy in retro-commissioning buildings that Apple already occupies or operates, including energy-intensive facilities like data centres. We audit the performance of buildings around the world, and then deploy identified reduction measures. Retro-commissioning focuses on building controls to emphasise energy use reduction and operational efficiency. We are prioritising reducing natural gas usage and replacing natural gas equipment with electrical equipment. While we’ve already transitioned to renewable electricity for our facilities, minimising natural gas is also an important element of working towards decarbonisation. We are focused on reviewing and benchmarking our most natural gas–intensive buildings to look for reduction and fuel switching opportunities. While our data centres, retail stores and offices all use 100 per cent renewable electricity, we are focused on reducing the energy we use in the first place. We consider natural gas and electricity usage at each of these types of sites — as well as research and development facilities — auditing how we perform and, when needed, using best practices for energy management to reduce our loads. And we tailor the design of new buildings to our occupants’ and lab users’ specific needs. This approach helps us use our facilities efficiently and productively. Data centres: Data centres are traditionally energyintensive, requiring significant resources to cool the heatgenerating equipment. That’s why we’re continuously monitoring and improving upon the controls for our In 2022, we further improved energy efficiency at data centres by deploying our own server design, developed with a focus on energy and computing efficiency, resulting in over 56.7 million kilowatt-hours per year in energy savings. This work builds on previous efficiency efforts in our data centres, including developing a specification requiring our servers to be powered by high-efficiency power supplies — exceeding even the efficiency requirements for ENERGY STAR certification — which was deployed to hundreds of thousands of servers in 2021, resulting in over 4 million kilowatt-hours per year in energy savings. New facilities: When designing new facilities, we incorporate energy efficiency principles early in the process. We look at each location’s conditions, planning for local temperature, humidity and light. As each site becomes operational, we monitor how well we’re performing and make needed adjustments. For example, in designing our new campus in Austin, we put in a watercooled air-conditioning system, rather than air-cooled, because of its increased energy efficiency. At the same time, it was critical to consider the water stress of the area, so the cooling system will be supplied with recycled water, which will also be used for toilet flushing. The first phase of our work on the Austin campus is saving 5.7 million kilowatt-hours per year. Energy efficiency addresses emissions from: Direct emissions (scope 1) Indirect emissions (scope 2) * * * Retail stores: In 2022, we were especially focused on our efficiency measures in European retail stores as the region navigated energy shortages. Beyond aligning with all mandates in place, we established a task force to exceed them, identifying and rolling out additional measures — related to LED lighting, temperature, and even keeping doors closed — in retail stores across the continent. Measurement and accountability: Measurement is critical to maintaining building energy performance. We continue to develop our system of energy tracking and benchmarking, which includes data from utility meters that continuously monitor 15-minute electricity and daily natural gas energy consumption. This method helps us identify performance issues at our sites early. We can then take corrective action to restore building system efficiencies and actively manage our energy footprint. Finally, across Apple, “energy champions” play an important role in achieving our efficiency outcomes. These employees sit in facilities roles across the company, proactively identifying opportunities for efficiencies and bringing their teams and colleagues along to put them in action. In 2022, our energy efficiency programme avoided 69.4 million kilowatt-hours of electricity, which includes savings from the efficient servers, and 161,000 therms of natural gas per year through adjustments made to 9.3 million square feet of new and existing buildings. Together, these new initiatives reduced total energy use by 4 per cent in the targeted buildings (including data centres with high loads) and will avoid an additional 27,500 tonnes of CO2e per year. Combined with ongoing energy savings from past years, we saved over 89,000 tonnes of CO2e in 2022. Improving energy efficiency in our supply chain The manufacturing of Apple products accounts for 65 per cent of Apple’s gross carbon footprint. To address this impact, we’re collaborating closely with our suppliers to prioritise energy reductions as an important element of our strategy. Together, we work to use clean energy as efficiently as possible at every point in our supply chain, creating leaner, more efficient factories all over the world. The Supplier Energy Efficiency Programme, launched in 2015, exists to help our suppliers optimise their energy use. Implementing energy efficiencies reduces the energy intensity of manufacturing, which translates to reduced carbon emissions. Energy efficiency gains and subsequent carbon savings are often found at the facility level — for example, by replacing outdated and inefficient lighting and equipment or capturing waste heat for reuse. Honing manufacturing processes using smart controls and monitoring can also offer opportunities to complete the same work with less electricity. We support our suppliers’ energy efficiency projects by helping to identify optimisation opportunities and design solutions through assessments, and providing extensive education and training opportunities that include technical assistance and connections to external funding for energy efficiency projects, which can be an obstacle to making improvements. As suppliers become more knowledgeable in this space, they become more able to tackle deeper decarbonisation challenges. We continue to expand the support we provide to suppliers as they build more energy-efficient systems, through new training and educational materials, and increased access to funding opportunities — like the Asia Green Fund, which Apple launched in 2019 to help provide energy efficiency expertise and finance capitalintensive energy efficiency projects. In 2022, $8.9 million of investments have been made in supplier efficiency projects using the Asia Green Fund. 1.3M In 2022, more than 100 supplier facilities participated in our energy efficiency programme, achieving over 1.6 billion kilowatt-hours of electricity savings and about 2,039,000 MMBtu in additional energy savings, which together avoided over 1.3 million tonnes of CO2e, representing a 17 per cent increase since 2021. * * * Feature Apple calls on global supply chain to decarbonise by 2030 Reducing energy use begins with measuring and understanding the carbon footprint of a business. Since 2019, as part of Apple’s Supplier Code of Conduct, we’ve required our suppliers to regularly identify sources of emissions, measure their scope 1 and scope 2 carbon emissions, and make this information available to Apple as needed. By understanding a supplier’s carbon emission sources and quantity, we can provide resources that help the supplier create an action plan to decarbonise and maximise energy efficiency opportunities. Further, we empower our suppliers to utilise the training, resources and tools provided through our programmes to extend their efforts beyond Apple to their own supply chains and customers. Apple has made significant progress in reducing emissions in our supply chain through work on energy efficiency and renewable energy (see page 22). At the same time, we’ve set — and continue to advance — clear expectations for our suppliers on the decarbonisation required to meet our 2030 goal in the years to come. In October 2022, we urged our materials, manufacturing and assembly partners to decarbonise their entire Apple footprint by 2030, including all their scope 1 and 2 emissions associated with Apple production. We’ll evaluate our suppliers’ work to decarbonise their Applerelated operations — including running on 100 per cent renewable electricity — and we’ll track yearly progress. Progress towards these goals will be a crucial part of the criteria we consider when awarding future business. Additionally, we encourage suppliers to address the greenhouse gas emissions beyond their Apple production, prioritising clean energy. To help suppliers meet their commitments and go even further, we offer a suite of free learning resources and training, and we work closely with our suppliers and local partners to identify effective solutions for renewable energy and carbon removal. Over 250 suppliers have committed to 100 per cent renewable electricity for Apple production, as part of Apple’s Clean Energy Programme. Holmen Iggesund in Sweden (pictured) joined the programme in 2023. * * * Clean electricity We’re at a pivotal moment in addressing climate change. Renewable energy is poised to replace fossil fuels as the future of electricity. Its adoption means cleaner air and lower carbon emissions. Apple has generated or sourced 100 per cent renewable electricity for 20 its corporate operations since 2018, and we’re swiftly progressing towards transitioning our entire manufacturing supply chain and product use to 100 per cent clean electricity too. As we grow, we continue to bring new renewable electricity projects online around the world. In the long term, we believe these projects provide more cost-effective energy with less price volatility. Renewable electricity can offer a competitive advantage by providing power to our operations, as well as to those of our suppliers, with greater control over energy supply and reduced exposure to cost fluctuations. And supporting our suppliers to adopt renewable energy technologies helps put them in a unique position to drive environmental action in their respective regions and significant progress towards our goal of carbon neutrality by 2030. Ultimately, we find ways to optimise energy use, and we seek renewable sources to supply that energy in support of our goal of 100 per cent clean electricity across our operations, manufacturing supply chain and charging of Apple products. With the renewable energy that we source, we aim to achieve positive impacts. Before we engage in an energy project, we consider its potential environmental and social impacts. When possible, we focus on creating new renewable electricity projects, going above and beyond what might be available on the local grid. We also follow stringent assurance standards21 to verify our clean energy projects. Maintaining 100 per cent renewable electricity for Apple facilities Our retail stores, data centres and offices around the world currently source 100 per cent renewable electricity. We’re proud of this accomplishment — and as we grow, we’re working diligently to maintain this benchmark. We’ve focused our efforts to source renewables around several key pillars: creating new renewable energy projects, undertaking projects that deliver clear benefits to local communities, and supporting renewable energy innovations. Creating new projects New renewable electricity projects require New renewable electricity projects require investment — whether in the form of direct ownership, equity investments or long-term power purchase agreements. In total, Apple-created renewable sources account for about 90 per cent of the renewable electricity that our facilities use — currently around 1.5 gigawatts. Apple-created projects include: • Direct ownership (~9 per cent of Apple‑ Direct ownership (~9 per cent of Apple‑ created projects) We build our own projects — including solar, biogas fuel cells and low-impact hydro projects — to provide renewable electricity, where feasible. Long-term renewable energy contracts (~88 per cent of Apple‑ created projects) Through long-term power purchase agreements, virtual power purchase agreements and other forms of long-term commitments, we help support new, local and primarily solar PV and wind projects in line with our renewable energy–sourcing standards. • Equity investment (~3 per cent of Apple‑ created projects) We invest capital in new solar PV or wind projects in some markets, matching the renewable energy generated with our energy use. • Long-term renewable energy contracts At 200-megawatts, the Montague Wind Power Facility in Oregon is one of Apple’s largest renewable projects to date. Indirect emissions (scope 2) * * * Apple has invested in the California Flats energy storage project, which retains generated clean energy from intermittent renewable sources, including the adjacent 130-megawatt California Flats Solar Project (pictured). To address gaps in our renewable energy needs beyond what’s provided by Apple-created projects, we directly purchase renewable electricity through available utility green energy programmes (about 5 per cent of our total corporate load in 2022). Co-location and distribution facility vendors supply about 3.2 per cent of our total load of renewable energy. And in certain situations, we purchase Renewable Energy Certificates (RECs).22 These RECs, which account for about 3.5 per cent of our total load, share the same power grid as the Apple facility they support, where available. These purchases are subject to the same standards as our Apple‑ created renewable energy projects. Appendix B provides additional details on Apple’s renewable energy solutions. Supporting social impact Supporting social impact We launched our Power for Impact programme in 2019 to help provide local communities with needed energy resources. With funding from Apple, local communities and organisations gain access to cost‑ effective energy. At the same time, Apple retains the projects’ environmental attributes, benefiting the community, our company and the environment. Apple is currently supporting 20 renewable electricity projects around the world, including in the Philippines, Thailand and South Africa. Read more about Power for Impact on page 25. Advancing renewable electricity through innovation We’ve continued to pursue innovations in how we We’ve continued to pursue innovations in how we create and use renewable electricity, including through investments in energy storage. To help address the intermittency in renewable electricity production, we’ve invested in utility-scale storage in California and in research on new energy storage technologies. The California Flats storage project — an industry-leading grid-scale battery energy storage system capable of storing 240 megawatt-hours of electricity — became operational in 2021. This project supports the 130-megawatt California Flats solar farm, which provides most of our renewable energy in California, by storing excess energy generated during the day and deploying it when it’s most needed. Apple-created renewable sources account for about 90 per cent of the renewable electricity that our facilities use. We’re also continuing to support biological methanation research at Aarhus University in Denmark, which explores the production of synthetic methane for storage in the existing gas grid. In this process, bacteria consume both hydrogen produced from excess renewable energy and captured carbon dioxide to produce methane, the principal component of natural gas. Methane produced from renewables is a versatile energy carrier that can be used as a fuel source in households, industry and transport. * * * Supply chain clean energy progress Renewable electricity operational and committed in gigawatts (GW) In the past two years, together with our suppliers, we've more than tripled the amount of renewable electricity online in our supply chain. As of March 2023, over 250 suppliers making up over 85 per cent of Apple’s direct spend for materials, manufacturing and assembly of our products worldwide have committed to using renewable electricity for their Apple production. In total, the Supplier Clean Energy Programme now has over 20 gigawatts of clean energy commitments, of which nearly two-thirds are already operational. In 2022, the 13.7 gigawatts of renewable energy procured by suppliers and online in Apple’s supply chain generated 23.7 million megawatt-hours of clean energy, avoiding 1 7.4 million tonnes of carbon emissions — a 23 per cent increase over 2021.23Appendix C includes more information about which suppliers have joined Apple in transitioning to 100 per cent renewable electricity. How suppliers are responding Long-standing energy policies and infrastructure that incentivise the use of fuels like coal can make it difficult to bring new renewable energy online in some regions, prompting some of our suppliers to rely on less impactful solutions, like one-off purchases of energy attribute certificates from existing renewable energy projects. These options represent an annual cost for buyers and offer no opportunity for cost savings or a return on investment. To overcome these challenges, suppliers are leveraging new purchasing methods, creating renewable energy businesses, and even participating in some of the world’s largest and most innovative renewable energy deals. Suppliers are also adapting to changing renewable energy markets by finding new solutions, including firstof-their-kind procurement structures in specific regions that include more corporate procurement options. In many cases, our suppliers are leading the way with the efforts they’re undertaking. We work closely with our suppliers to identify innovative methods of creating and accessing cost-effective renewable energy. And we work together to break down barriers by advocating for clean energy–friendly policies. * * * How we support our suppliers Galvanising internal champions We’ve been able to quickly scale the Supplier Clean Galvanising internal champions We’ve been able to quickly scale the Supplier Clean Energy Programme by involving supplier-facing Apple employees. Apple employees are passionate about the environment and are driven to help meet our 2030 carbon neutrality goal. We empower supplier-facing Apple employees — those who often travel to supplier sites or have direct, consistent contact with suppliers — with the tools they need to help speed a supplier’s transition to 100 per cent renewable electricity. This starts with data and transparency. We track the electricity use and renewable procurement of our suppliers, including those just beginning to learn about renewable electricity and others that are well on their way to using 100 per cent renewable electricity, and we help them measure progress and gain access to solutions. We’ve also created internal training and crafted a simple engagement process, backed by resources for both Apple employees and suppliers. By connecting our suppliers with resources and providing transparency on supplier progress, our teams are scaling impact across our supply chain. Supporting supplier capacity We share the experience gained through our transition We share the experience gained through our transition to 100 per cent renewable electricity with our suppliers because knowledge empowers them to identify and pursue opportunities to decarbonise as their businesses evolve. For this reason, we invest heavily in providing education and training across our supply chain through platforms such as our Clean Energy Academy. More than 170 supplier participants in China, Korea, Japan and Vietnam participated in our Clean Energy Academies in 2022. The academies offer updates on available energy procurement options in suppliers’ markets, help suppliers prepare to participate in upcoming renewable energy pilots, and provide guidance from local experts on implementation. This programme supplements our Clean Energy Portal, which is available to all suppliers and provides training materials, resources and countryspecific information to guide suppliers in their transition to 100 per cent renewable electricity. In 2022, we announced plans to donate these resources to create a first-of-its-kind public training platform that will be available to businesses across many different industries. This platform will give companies of all sizes — in Apple’s supply chain and beyond — access to the resources and advocacy networks we’ve cultivated for nearly a decade. We also educate suppliers through advanced and customised training with leading experts. And we support the creation and growth of renewable energy industry associations that our suppliers can join to learn about local opportunities. Expanding access to renewable electricity To support our suppliers’ transition to renewable To support our suppliers’ transition to renewable electricity, we help them find high-quality solutions so they can decide how best to address their specific needs. When we face barriers to accessing cost-effective clean electricity, we innovate. One such innovation, the China Clean Energy Fund, enables Apple and our suppliers to invest in clean energy. As of March 2023, the fund has invested in over 650 megawatts of renewable electricity projects, with nearly 100 per cent of those investments online. We also connect suppliers with opportunities to buy renewable energy directly from project developers and utilities as those models emerge around the globe. Advocating for policy change Our collective ability to procure and enable high-quality Our collective ability to procure and enable high-quality renewable energy is often influenced by local policies. Effective government policies and rules can remove significant barriers to low-carbon solutions and enable solutions to rapidly scale. We recognise that to transition to renewable energy effectively, clean energy investments need to make financial sense. But carbon-intensive energy sources, like coal and gas, often have an unfair price advantage because of explicit subsidies and the ignored costs of externalities, such as air pollution and carbon emissions. We’re encouraging governments not to subsidise or expand carbon-intensive infrastructure that will inhibit competition and discourage the development of new technologies, like renewable energy and advanced energy storage technologies. We also encourage governments to keep pace with the speed of technological innovation, consider life cycle emissions of energy solutions, and support new energy solutions that effectively reduce global emissions. We lend our voice and stand with other companies and NGOs to break down policy barriers to achieve thriving clean energy markets. Across regions where our suppliers operate, we engage with policy makers to support renewable energy that’s cost-effective, accessible to companies, and sourced from high-quality projects with a material impact on local markets. For example, with RE100, an initiative that brings together the world’s most influential businesses through commitments to use 100 per cent renewable electricity, we’ve identified country-level policy barriers to procuring renewable electricity. RE100 collates the challenges that member companies face and advocates for changes on our behalf. We also co-founded the Asia Clean Energy Coalition, which convenes a diverse coalition of leading renewables to renewable energy effectively, clean energy investments private sector actors to enact critical policy shifts in Asia that will enable a variety of corporate procurement options for renewable energy. * * * Apple is investing in renewable energy worldwide — including this large-scale solar project in Brown County, Texas — to help address the electricity customers use to charge their Apple devices. As we expand on our strategy to cover product use with clean electricity, we’re considering a number of factors in selecting projects. In accordance with global greenhouse gas accounting standards, we’ll match the electricity consumption of our products with 100 per cent clean electricity on an annual basis. While we’ll source the majority of our clean electricity from the region, we’re maintaining geographic flexibility for a portion of the emissions so that we can target grids with higher carbon intensity. This approach allows us to balance focusing on areas where our customers use our products and maximising the social and environmental benefits of additional renewable energy. For example, while California is a large market for Apple, we might build new renewable energy projects in other locations with lower clean energy percentages on their grids, where the same renewable energy capacity can have a more significant impact. Engaging with our customers In many places, electricity comes from clean sources like As a first phase of this work, we’re working towards developing large-scale solar and wind projects in the US and Europe. In the US, we’ve invested in the 320-megawatt 2,300-acre IP Radian solar project in Brown County, Texas, and plans for additional projects in the US are underway. In Europe, we plan to engage in projects that range between 30 and 300 megawatts, with an initial request for proposals issued in 2022. Beyond the work that we do on our products, we collaborate with others to continue advancing climatesmart decision-making for customers across their household energy usage, as well as for our employees and partners. As an example, Apple has joined the CoolClimate Network, a research partnership of the University of California, Berkeley, that motivates and empowers individuals and organisations to make lowcarbon choices. * * * FEATURE Increasing access to clean energy around the world Power for Impact is driven by the idea that access to clean energy creates opportunities within communities while benefiting our climate. Apple launched the initiative in 2019 to provide under-resourced communities with renewable power while supporting economic growth and social impact. The programme funds clean energy projects that are mutually beneficial — local communities and organisations get access to cost-effective energy, and Apple retains the environmental attributes of each project. We currently support 20 renewable projects around the world, including: Colombia: Apple helps bring a rooftop solar power system online at the Hospital Infantil Santa Ana. The money saved on energy bills will allow the hospital to purchase more equipment and medications. A rooftop solar installation at Ciudad Don Bosco, a non-profit organisation that provides educational and social services for under-resourced youth, helps the group advance its sustainable development goals. Democratic Republic of the Congo: Apple provides access to renewable energy for the Malaika School, which empowers Congolese girls and their communities through education, agriculture, water projects, health outreach, sport and vocational training. To support Malaika students and teachers, this solar initiative builds on other Apple collaborations, including virtual Today at Apple sessions on coding with Swift, photography, filmmaking and design, as well as other events with Apple Retail teams and Diversity Network Associations. Israel: Apple supports the Nitzana Educational Eco- Village, a community for at-risk youth, with a 260-kilowatt solar system to help lower electricity costs. The savings help enhance educational experiences for young people from various backgrounds. Nigeria: A remote mini-grid project is under development to provide energy access to community members and replace fossil fuels for some businesses. Apple will also continue to support the development of a solar power system to serve primary healthcare centres in the state of Ondo, as well as 200 households in the surrounding region. South Africa: Apple will fund new rooftop solar installations at a vocational school and at a home for senior citizens. Along with the four operational projects, these installations will reduce electricity costs, and the savings will help fund operating costs and expand programmes to support underserved groups. Apple will continue to bring electricity to over 3,500 households that previously lacked access with local street lighting. Vietnam: Apple helps provide solar electricity for 20 schools around the country, and helps each thousands of children about sustainable development and STEM. Zambia: A microgrid supported by Apple will provide power to hundreds of households that are currently without electricity. The project will reduce reliance and costs associated with imported diesel and petrol for generators, and it will increase the amount of power available to community organisations and businesses. Power for Impact is expanding access to clean, affordable power in different parts of the world. Apple will continue to focus on uplifting communities as it pursues its environmental goals. * * * Direct emissions abatement Some materials that are integral to our products result in significant emissions. The same is true for certain manufacturing processes and the transportation of our products. To address these emissions, we seek technological solutions and emissions abatement, and we’re moving away from fossil fuels. Rethinking how aluminium is made As part of Apple’s commitment to reduce our products’ environmental impact through innovation, we’ve partnered with aluminium companies and the governments of Canada and Quebec to invest in ELYSIS — a joint venture to commercialise patented technology that eliminates direct greenhouse gas emissions from the traditional smelting process. This is a revolutionary advancement in the manufacturing of one of the world’s most widely used metals. Since our collaboration began in 2018, we’ve helped accelerate the development of this technology by facilitating the joint partnership and providing initial funding and ongoing technical support. continued to make progress within its industrial research and development centre in Quebec — enabling the venture to begin producing commercial-purity primary aluminium at industrial scale — and continued construction of its larger commercial-scale prototype cells. Addressing fluorinated greenhouse gas emissions One of the largest contributors of direct emissions in our supply chain is the use of fluorinated greenhouse gases (F-GHGs). F-GHGs are used in the electronics manufacturing of semiconductors and flat-panel displays, and they have global warming potentials that are thousands of times more than those of CO2. We’re partnering closely with key manufacturers as they work to prevent these gases from being released into the atmosphere. So while the use of F-GHGs in certain manufacturing processes today is difficult to avoid, emissions can be abated by switching to alternative input gases, by optimising production processes to use and emit fewer F-GHGs, and by installing gas abatement tools. Transporting products We’re also seeking out technical innovations for transport, including working with our suppliers to use alternative fuels and electric vehicles. For example, in Europe we piloted a heavy-duty lorry fuelled by hydrogen, an emerging low-carbon fuel for lorries that travel long distances. And we’re continuing to evaluate carriers that offer carbonneutral deliveries using electric vehicles, including e-bikes and e-cars. These innovations help reduce our impact in the communities where our customers purchase our products. And by preferring vendors that offer low-carbon options, we signal the value of these options to us and reward those driving decarbonisation in their industry. We are also combining multiple products into one delivery when possible, reducing packaging and reducing emissions though efficiency on the last leg of the journey. At the same time, Apple is working to spur entirely new solutions — for example, by supporting analyses by Carbon Direct identifying pathways for developing sustainable aviation fuels. Improving employee travel and commuting We’re continuing to explore ways of reducing our carbon footprint from employees commuting to work. For example, we’re helping our employees transition away from single-occupancy vehicles through public coach services and campus bicycles. To incentivise the use of electric vehicles, we offer more than 1,670 EV charging stations and 3,200 ports across our US-based campuses. For the commute-related emissions that remain, we’re applying high-quality offsets. Direct emissions abatement addresses emissions from: Product manufacturing (scope 3) * * * Carbon removal Our 2030 Climate Roadmap aims to reduce our emissions by 75 per cent compared with 2015 levels, as well as scale up carbon removal strategies to address the remaining emissions that we can’t yet avoid. We’re exploring a range of carbon removal solutions to do so, which is consistent with the Intergovernmental Panel on Climate Change’s position that all pathways limiting warming to 1.5° C require carbon removal for 26 unavoidable emissions. $$ 1. 5 ^ {\\circ} \\mathrm {C} $$ Carbon removal projects take carbon dioxide out of the atmosphere and store it in long-term carbon sinks, whether nature-based — like forests, wetlands and grasslands — or geologically, in formations such as saline aquifers or other suitable geological sites. In addition to removing carbon, nature-based carbon removal projects also offer important ecological and social benefits, such as preserving biodiversity and enhancing the resilience of ecosystems while often providing economic development opportunities for local communities. Investing in nature The earth’s trees, plants and soils provide some of the greatest capabilities to remove and store carbon from the atmosphere. Carbon credits provide an opportunity to invest in these solutions, but carbon markets haven’t yet scaled to remove the carbon needed to limit global warming to 1.5° C. That’s why we’re expanding naturebased investments to support our goal of achieving carbon neutrality across our full product life cycle by 2030. In 2021, we partnered with Conservation International and Goldman Sachs to launch the Restore Fund, which has closed over $100 million in projects that are forecast to remove over 1 million tonnes of carbon starting in 2025. This fund is unique because it aims to change carbon removal from a cost to a potentially profitable investment. By creating a fund that generates both a financial return as well as real and measurable carbon impact, we aim to drive broader change — encouraging capital investment in carbon removal around the globe. Carbon removal projects to address non-electricity emissions — up to 25 per cent of 2015 emissions (all scopes) Through the first phase of the Restore Fund, we’re working with forestry managers to create sustainably managed forests that are optimised for both carbon and wood production, creating revenue from timber and generating high-quality carbon credits. Photo credit: Arbaro Advisors. * * * The first phase of our innovative fund has focused on blending responsible forestry practices with carbon removal. We’re working with forestry managers to create sustainably managed forests that are optimised for both carbon and wood production in order to create revenue from timber and generate high-quality carbon credits. The projects also seek to maximise environmental impact, including carbon, hydrology and habitat restoration. In October 2022, Apple announced three new projects through the Restore Fund. In partnership with Conservation International and Goldman Sachs, Apple has invested with three high-quality forestry managers in Brazil and Paraguay with the goal of restoring 150,000 acres of certified sustainable working forests and protecting around 100,000 acres of native forests, grasslands and wetlands. Together, these initial forestry projects are forecast to remove 1 million tonnes of carbon dioxide from the atmosphere starting in 2025. To improve the accuracy of monitoring, reporting and verification of the projects’ carbon removal impact, Apple is deploying innovative remote sensing technologies using Space Intelligence’s Carbon and Habitat Mapper and Upstream Tech’s Lens. Using high-resolution satellite imagery from Maxar and other providers, this initiative enables us to view detailed habitat and forest carbon maps for our Restore Fund projects. Through our engagement with the MIT Climate & Sustainability Consortium, Apple is jointly funding research with PepsiCo and Cargill on improving the measurement of soil carbon in nature-based carbon removal projects. And Apple is separately exploring the use of LiDAR data using iPhone to improve field measurements of forest carbon. Based on our learnings with these projects and the growing global need for more nature-based solutions, Apple announced an expansion of the Restore Fund in 2023\. Apple has committed additional funds — up to $200 million — that will be managed by Climate Asset Management, a joint venture between HSBC Asset Management and Pollination. The commitment will support a broader portfolio of high-quality nature-based projects that scale up carbon removal while seeking to achieve a financial return on investment. The expanded fund will target two types of investment: sustainable agriculture and other ecosystem assets, and a pipeline of landscape restoration projects that aim to remove carbon from the atmosphere. Together, this unique blended fund structure will continue to demonstrate that we can invest in high-quality nature-based projects to achieve both financial and carbon returns. Integrity and a rigorous approach are central to how we designed the Restore Fund with our partners. The projects aim to become certified to international standards developed by organisations such as Verra, Gold Standard, the Climate, Community & Biodiversity Alliance (CCBA) and the Forest Stewardship Council (FSC). Use of these international standards helps confirm that the carbon stored in forests is measured and reported to the highest standards and that projects have the most up-to-date safeguards in place. The projects we choose will also seek to have a positive impact on the livelihoods of local communities by bringing economic opportunities to often underserved rural economies. And we’ll continue to focus on projects that protect lands with high conservation values. High-quality carbon offsets as an interim solution We plan to reach our goal of becoming carbon neutral across our entire value chain by 2030, using a wide range of solutions at our disposal, prioritising significant emissions reductions and long-term carbon removal initiatives like the Restore Fund. But as the projects in the Restore Fund come online, we’re also working to address difficult-to-avoid emissions in the short term. We’ve been carbon neutral for our corporate emissions since April 2020. We started by reducing our corporate emissions through the use of 100 per cent renewable electricity and energy efficiency efforts at our facilities. But emissions remain difficult to avoid in some activities — including the natural gas used in some of our buildings and emissions from business air travel and employee commuting. For the emissions we can’t avoid, we use high-quality offsets as an interim solution. We’re intentional about identifying avoided deforestation and removal projects that are of the highest standard and that achieve meaningful impact. We often originate our own projects working with a reputable partner, like Conservation International, or we carefully select projects from thirdparty certified registries. For more details about our purchases of carbon offsets, see Appendix A. * * * FEATURE Advocating for strong climate policies The scientific community has laid out a clear rationale for mitigating the impacts of climate change by reducing emissions — and they’ve provided stark warnings for the consequences of inaction. In addition to strong actions by businesses and individuals, we need strong government policies that support a just climate transition. That’s why Apple believes that advocating for strong climate policies is a core part of our climate strategy. Apple has a long history of advocating for strong climate policies. And in 2022, Apple, joined by other companies, submitted an Amicus Brief, urging the US Supreme Court to uphold the US EPA’s authority to regulate greenhouse gases from power stations. Our climate policy advocacy centres on the following principles: Setting strong science-based targets Policy makers need to set strong science-based targets Policy makers need to set strong science-based targets to reduce emissions in line with the Paris Agreement and limit warming to 1.5° C. Rapidly decarbonising through economy-wide and sectoral policies Rapid decarbonisation requires every sector of the economy to adopt new zero-carbon technologies as fossil fuels phase out. We not only support economy-wide policies but also acknowledge that each sector responds to different signals and the maturity of technologies to decarbonise them isn’t equal. Apple’s advocacy for sectoral approaches includes these principles: • Promote economy-wide carbon pricing programmes with strong interim and long-term targets and accountability mechanisms. • Advocate for policies that make it easier and more • Support policies that promote energy efficiency across all sectors, including for manufactured goods. • Invest in mature and new zero-emission technologies to cut emissions, particularly in hard-todecarbonise sectors. • Advocate for policies that make it easier and more cost-effective to deploy renewable energy. • Support policies that promote energy efficiency Encouraging and enabling high-quality measurement and disclosure of emissions Governments should require that companies measure Governments should require that companies measure their emissions along the entire value chain and disclose those emissions publicly. Developing clear rules for disclosure across all scopes of emissions will create best practices, enhance the transparency and integrity of claims, and promote competitive innovation. Governments should align to have the same high-quality standards. Ensuring high-quality solutions Governments should establish or oversee systems Governments should establish or oversee systems to track and verify renewable energy credits and carbon credits to avoid double-counting, to incentivise participation and to ensure environmental integrity. These credits should be transparent and verified to provide confidence to the public, and promote energy solutions that significantly reduce emissions, including consideration of the full value chain impact. Centring equity and justice in climate solutions Climate policies should support the development of the new green economy, with new job opportunities focused on advancing clean innovation. Equity should be a guiding principle of policies supporting this economy. Communities that have been disproportionately impacted by climate change should benefit from the economic opportunities of potential solutions. \[We\] believe that both corporate and regulatory action are necessary to prevent the worst impacts of climate change and have a strong interest in the implementation of sound public policies to reduce greenhouse gas emissions. Brief Amici Curiae of Apple et al., West Virginia vs EPA (2022). * * * Key milestones in our climate policy advocacy 2015 (US): Apple joined the White House’s American Business Act on Climate Pledge, in which participating companies voiced support for a strong outcome at the COP21 in Paris and demonstrated an ongoing commitment to climate action. 2016 (US): Apple joined Google, Microsoft and Amazon to sign an Amicus Brief in support of the US EPA’s Clean Power Plan. 2016 (World): Apple addressed 700 senior government, business and community leaders at the seventh Clean Energy Ministerial, where we called for governments across the world to put a price on carbon to address climate change. 2017 (US): Apple urged the White House to remain in the Paris Agreement and take meaningful action on climate change. 2018 (US): Apple filed individual comments to the US EPA, urging it not to repeal the Clean Power Plan because of its importance in reducing emissions. 2018 (Japan): Apple filed comments with the Japanese government, calling for the development of a robust and verifiable renewable energy trading system. 2018 (US): Apple filed comments to the Federal Energy Regulatory Commission, urging it not to finalise a rule that would subsidise fossil fuels, which would limit the ability of renewables to compete in the electricity market. FERC chose not to finalise that rule. 2017 (Vietnam): Apple joined other companies urging the government of Vietnam to make regulatory changes allowing businesses to procure renewable energy through direct power purchase agreements. 2017 (China): Apple hosted a roundtable with the Green Electricity Consumption Cooperative Organization (GECCO) to create a platform for buyers in China where they can discuss renewable energy procurement challenges and opportunities, and inform future policy. 2018 (China): Apple submitted formal comments to China’s National Development and Reform Commission about the implications of draft policy on corporate clean energy procurement. 2018 (South Korea): Apple met with government officials in Korea to discuss the need for increased renewable generation and retail choice, whereby consumers can select their power source. 2018 (Japan): Apple was among the first multinational companies to join the Japan Climate Leaders’ Partnership, a coalition of companies that align business objectives with environmental goals. 2019 (Vietnam): Apple urged the government to reform the electricity market, allowing businesses to purchase power directly from renewable power stations. 2019 (World): Apple participated in the UN Environment Assembly and conducted bilateral discussions with a number of countries to advocate for policies that enable a circular economy and bold action on climate. 2022 (South Korea): Apple spoke at the carbon neutrality conference calling for Korea’s 2030 energy plan to set a higher target for renewable energy, a fairer competitive market for renewables and improved transparency for renewable energy solutions. 2021 (US): Apple became the first company to voice support for the enactment of the Clean Energy Standard (CES) that would decarbonise the power grid by 2035. 2021 (Vietnam): Apple and other companies vocalised our support to the government of Vietnam for the ambitious Power Development Plan prioritising clean energy. 2021 (US): Apple was one of the first large, public US companies calling on the SEC to require disclosures of global greenhouse gases across all emission scopes. 2020 (EU): Apple called on European leaders to increase their climate ambition to achieve targets of at least 55 per cent greenhouse gas emissions reduction by 2030 and carbon neutrality by 2050. The EU adopted these targets. 2022 (US): Apple, along with Meta and Google, advocated for greatly expanded renewable generation to achieve a 70 per cent reduction in emissions in North Carolina through intervention in the North Carolina Carbon Plan proceeding. To reach our global climate goals, governments must create policies that support a just climate transition. We've been actively advocating for strong climate policies for many years. * * * Introduction Climate Change **Resources** Smarter Chemistry Engagement and Advocacy Appendix 2023 Environmental Progress Report31 # Resources ## It takes recycled guts to reduce our ## footprint * * * Goals and progress Goal Use only recycled and renewable materials in our products and packaging, and enhance material recovery. In 2022,20 per cent of the material we shipped in our products came from 27 recycled or renewable sources. We’ve accelerated our work through new commitments to transition to 100 per cent recycled cobalt, tin, gold and rare earth elements in selected 28 components by 2025. Goal Eliminate plastics in our 29 packaging by 2025. Our product packaging contains only 4 per cent plastic — down from 21 per cent in 2015. Goal Eliminate waste sent to landfill from our corporate facilities and our suppliers. Goal Our corporate facilities waste diversion rate increased to 71 per cent, driven by progress at our data centres. * * * Our approach Each of our products and services is made possible by natural resources. We’re committed to sourcing, using and recycling the materials we rely on in a way that meets our high standards for labour, human rights and environmental stewardship. This commitment extends across our operations and supply chain, so we use materials in a manner consistent with our values, we responsibly manage freshwater usage so that these resources will be available and safe for others in the community, and we work to eliminate waste at our facilities and those of our suppliers. This serves our objective to minimise the overall resource footprint supporting our products. And we know we can’t do this alone — it requires collaborative stewardship of shared resources. In the future we envision, our products are made solely from responsibly sourced, recycled and renewable materials — to our same rigorous standards of quality and durability. We aim to build durable, long-lasting products that make the best use of the resources required to make them. And recycling approaches and innovations make this achievable, helping us recover and use the materials we rely on in our products to their full potential. We’re working with leading recyclers and academic institutions to realise this future through researching new technologies and identifying the challenges and opportunities to achieve positive change across industries. Water is one of the most critical resources we need to build our products. It provides vital services at our offices, data centres and stores — and it’s essential to our manufacturing processes. Water is also a community resource. For this reason, we prioritise our stewardship efforts — working towards the most efficient use of freshwater, using alternatives where possible and managing our discharge responsibly. We also look beyond our facilities to the water basins where we operate. Through collaborations with local partners — including companies, NGOs and government agencies — we’re working together to improve the quality of the water that our communities rely on. Another approach to conserving resources is by eliminating waste. We work to reuse and recycle across our operations and throughout our supply chain. We strive to eliminate waste where we and our suppliers operate. These efforts go beyond reducing the amount of waste that we generate. We’re innovating approaches to reuse and working with local businesses to create new recycling opportunities. Within resources, we focus on three main areas of impact: Transition to only recycled or renewable materials in our products and packaging, and maximise material efficiency, product longevity and recovery. Materials Reduce water impacts in the manufacturing of our products, use of our services and our facility operations. At the same time, transition to alternative solutions, improve the quality of water we discharge and protect shared water resources. Water Zero waste Minimise overall waste generated and eliminate waste sent to landfill from our * * * Materials We’re working towards a world where we create our products from, and where we contribute to, circular supply chains. This starts by building products that are circular by design and made from responsibly sourced, recycled and renewable materials. This work will help us end reliance on mining, which is often both carbonintensive and detrimental to the communities and ecosystems where it takes place. We aim to create products that make greater use of circular supply chains that don’t rely on mined resources. They do so while meeting our rigorous requirements for quality, durability and performance. Part of what makes this possible are the recycling innovations we’re developing to enhance material recovery. While these innovations support circular supply chains for Apple, we also hope our actions are inspiring others to follow. This progress can impact those who buy our products, can influence the markets where we work, and can create change for broader global communities. These are the opportunities that drive us through the challenging work of creating circular supply chains. The following three pillars define our approach to achieving circularity: We source recycled and renewable materials for our products and packaging, and we use these materials more efficiently. We also source the materials responsibly, whether from primary, recycled or renewable sources. Sourcing and efficiency We source recycled and renewable materials for our Collection and recovery We improve how we collect end-of-life products and We make the most of the materials we use by designing long-lasting products. We design durable hardware, leverage software updates to extend functionality, provide convenient access to safe and high-quality repair services, and direct devices and parts to be refurbished and reused. Sourcing and efficiency How we pursue circularity for our How we pursue circularity for our products products The source of the materials we rely on matters to us. We place a clear value on materials that don’t deplete the earth’s resources. As we move towards recycled and renewable content, we’re joined in our efforts by many partners. We look forward to engaging with many others as part of a broader global transition. As we design new products, we continue to source materials responsibly and use materials efficiently and safely. * * * Expanding our use of recycled content Our progress on materials continued in 2022 as we’ve Expanding our use of recycled content Our progress on materials continued in 2022 as we’ve moved closer to creating a circular supply chain for several materials. With tin, we first proved in 2017 that we could use 100 per cent recycled tin for the solder on the main logic board (where the majority of tin is found) of iPhone 6s, and in 2022, we’re now using 100 per cent recycled tin on many flexible printed circuit boards used across almost all newly launched products. This resulted in the total shipped recycled tin increasing to 38 per cent across all product lines in 2022 — up from 30 per cent in 2021. We took a similar approach with gold. Across all products, we expanded our use of certified recycled gold — from the gold plating on the main logic board on iPhone to other product main logic boards and flexible printed circuit boards — increasing certified recycled gold content to approximately 4 per cent across all products that shipped in 2022 — up from just 1 per cent in 2021.30 These and other innovations helped us increase our use of recycled and renewable content to 20 per cent of all the material shipped in products in 2022.31 We’ve also achieved several milestones with copper and zinc. For iPad models introduced in October 2022, we’re using 100 per cent recycled copper foil in the main logic board. For Mac Studio and Studio Display, we’ve developed a brass alloy using 100 per cent recycled copper and zinc for use in the AC inlet and plug pins. Finally, since last year, we’ve nearly doubled our use of recycled cobalt in batteries to 27 per cent across iPhone, iPad and Mac devices year on year, bringing the total recycled cobalt shipped in 2022 to 25 per cent.32 Prioritising our efforts Prioritising our efforts Our recycled and renewable efforts continue to focus on 14 materials we’ve prioritised based on a broad range of environmental, social and supply chain impacts. (These are outlined in detail in our Material Impact Profiles white paper.33) Some of the materials prioritised through this process include lower-mass but higher-impact materials. Our priority materials include aluminium, cobalt, copper, glass, gold, lithium, paper, plastics, rare earth elements, steel, tantalum, tin, tungsten and zinc, and they account for 87 per cent of the total product mass shipped to our customers in 2022.34 Our teams are overcoming many obstacles to creating closed-loop supply chains, including material performance and traceability. This is possible through our work with a diverse group of partners. We’ve been able to design a new, 100 per cent recycled aluminium alloy that meets our rigorous performance standards. And we’ve improved our ability to track key materials like batteries within our supply chain, end to end. Barriers to our progress remain — including challenges within our control and those outside Apple’s direct influence. Addressing these requires a collective response. But through collaboration within the material space, we can achieve impact felt beyond our business. The supply chains we’re helping create serve more than just our needs — they help promote the availability of competitively priced, quality recycled and renewable materials across geographies. Maintaining high standards for materials is an essential element of this work. Our recycled and renewable material specifications follow standards established by the international community.35 Through this process, we’re able to confirm that a material has been recycled or comes from a renewable source — one that can continually produce without depleting the earth’s resources.36 We approach materials from new sources with the same rigour, evaluating each for the safety of the materials’ chemistry. This process allows us to scale our use of materials that are better for the environment and safe for use in our products. Responsible sourcing of materials Responsible sourcing of materials This diligence carries over to sourcing. We obtain our resources responsibly, regardless of whether we’re using primary or recycled materials. This approach is a necessary complement to our environmental efforts — and it draws from the same reliance on international standards. Our standards for Responsible Sourcing of Materials are based on leading international guidance, including the United Nations Guiding Principles on Business and Human Rights and the Organisation for Economic Co-operation and Development (OECD) Due Diligence Guidance. In 2022, 100 per cent of the identified tin, tantalum, tungsten, gold (3TG), cobalt and lithium smelters and refiners in Apple’s supply chain completed assessments to verify compliance with our standards, and to aid in identifying social, environmental, human rights and governance risks. We also map other materials in our products such as mica, copper, graphite and nickel, and before production, evaluate suppliers of new materials for compliance with our requirements. We also continue to map, conduct additional due diligence, and facilitate independent third-party audits on other materials used in our products, such as graphite, nickel and copper. As we build supply chains for recycled materials, we’re also partnering with the smelters and refiners identified through this process. Industry collaboration As we focus on responsible sourcing and the use of recycled content, we continue to engage with multiple industry initiatives. These include our role on the steering committee of the Responsible Minerals Initiative (RMI). This coalition is one of the most commonly used resources for companies — from a range of industries — that are working to address mineral sourcing issues in their supply chains. We are also a board member of the Platform for Accelerating the Circular Economy (PACE) and co-lead the electronics programme. PACE is a global collaboration platform for public and private decision makers to share a vision, best practices and innovations towards a circular economy. Apple is a co-champion of the First Movers Coalition for Aluminium, whose focus is to aggregate demand signals for ultra-low carbon technologies and materials. We also collaborate with other industry organisations, including the Aluminum Stewardship Initiative, to promote transparency across supply chains and implement additional commodityspecific auditing and due diligence systems. * * * FEATURE Our transition to certified recycled materials by product line In 2022, the average recycled content shipped in Apple products increased to 20 per cent. We’ve approached the work material by material, component by component, starting by introducing recycled content in one product and then expanding across Apple’s product lines. We're using more recycled materials than ever All products launched in the calendar year include certified recycled content Some products launched in the calendar year include certified recycled content Some products launched in the calendar year include certified recycled content No products launched in the calendar year include certified recycled content Recycled content not applicable\* - Material is considered “not applicable” if it’s found only in small quantities dispersed across modules. * * * FEATURE FEATURE Progress across our priority materials Progress across our priority materials We’re making progress towards our goal of sourcing only recycled or renewable materials in our products: in 2022, 20 per cent of the material we shipped in products came from 37 recycled or renewable sources. We’re also accelerating our ambition: we recently announced that by 2025, we plan to use 100 per cent recycled cobalt in all Apple-designed 38 batteries; 100 per cent recycled tin soldering and 100 per cent recycled gold plating in all Apple-designed rigid and flexible printed circuit 39 boards; and 100 per cent recycled rare earth elements in all magnets 40 across all products. Key challenges to developing circular supply chains include: Technical properties The properties of a recycled or renewable material The properties of a recycled or renewable material may differ from the primary material. This needs to be accounted for during product design and manufacturing. For example, certain recycled plastics differ in properties from other plastics. The composition of other recycled materials can also be impacted by some level of contamination during the recycling process. Availability and access Supply of recycled and renewable materials can be constrained by the limited availability of scrap sources or production of renewable content. When supply exists in some locations around the world, new suppliers need to be incorporated into supply chains for the material to be accessed. Supply chains Recycled or renewable content may not be easily Recycled or renewable content may not be easily accessible on the market, requiring the development of new supply chains. Traceability Information about the source of materials — whether mined, recycled or renewable — might not be readily available. Scale Materials for a single component can come from Scale Materials for a single component can come from hundreds of different material suppliers, representing an exponential increase in effort as we scale the use of high-quality recycled or renewable materials across components and products. Regulatory barriers Transboundary movement regulations — created | Material | Key challenges | Progress | | --- | --- | --- | | Aluminium | Regulatory barriers Technical properties Scale | We're continuing to scale our new, 100 per cent recycled aluminium alloy — which incorporates recycled content without compromising performance — across all products. Overall, in 2022,67 per cent of the aluminium we shipped came from recycled sources — up from 59 per cent in 2021.41Of the products introduced during this period,iPad Air(5th generation),Apple Watch Series 8,Apple Watch SE(2nd generation)和MacBook Air with M2 all contain 100 per cent recycled aluminium in their enclosures.Apple Studio Display contains 100 per cent recycled aluminium in the stand,and Apple TV 4K(3rd generation)contains 80 per cent recycled aluminium in the thermal module.Because recycled aluminium can have 1/40th the carbon footprint of aluminium from primary sources,this supports our pursuit of low-carbon design.42Our recycled material comes from several sources,including scrap from the manufacture of Apple products and other post-industrial sources.And our product claims are supported by suppliers who have taken the additional step of getting their recycled content certified by an independent third party. | | Cobalt | Regulatory barriers Availability and access Scale | In 2022,25 per cent of the cobalt shipped in our products—nearly double the amount shipped in 2021—came from certified recycled sources on a mass-balance basis,including both post-industrial scrap and post-consumer scrap from end-of-life batteries.The cobalt from iPhone batteries disassembled by Daisy(one of our disassembly robots)is being returned to the market,making the material available to others.And in 2023,Apple committed to using 100 per cent recycled cobalt in all Apple-designed batteries by 2025.43 | | Copper | Technical properties Supply chains Scale | Electronics applications require the use of high-performance copper.Yet even as challenges remain in identifying quality scrap sources,we're making progress.In March 2022,we introduced 100 per cent recycled copper for the first time in any Apple product:Apple Studio Display and Mac Studio both use 100 per cent recycled copper in the brass pins of the power lead plug and AC inlet.We also continue testing 100 per cent recycled copper in other applications to evaluate its technical properties and performance across product lines.Copper is also a key material in printed circuit boards.For iPad(10th generation),introduced in October 2022,we're using 100 per cent recycled copper foil in the main logic board—Apple's first use of standalone recycled copper. | | Glass | Technical properties Availability and access Scale | Recycled sources are scarce for the quality of glass we use in our products—and performance of this material is key to the durability of our final products.We're working hard to identify recycled content and incorporate it into the material we use to produce glass parts.The cover glass and back glass of all iPhone and iPad devices contain recycled glass.By incorporating quality scrap in our applications,we also help keep glass at its highest-purity use for future recovery. | | Gold | Regulatory barriers Transparency Scale | In 2021,iPhone 13 models were the first Apple devices to contain 100 per cent certified recycled gold,used in the plating of the main logic board and wire of the front and rear cameras.In 2022,we expanded our use to the wire of every camera of iPhone 14 and to the plating of the printed circuit boards of all newly released Apple Watch models,to iPad Pro 11-inch(4th generation)和 to AirPods Pro(2nd generation),increasing our use of recycled gold to about4 per cent in 2022 across all product lines-up from 1 per cent in 2021.Because primary and secondary sources of gold are often commingled,to certify 100 per cent recycled sources required pioneering industry-leading levels of traceability:we identified suppliers who were able to source and segregate recycled gold sources while meeting our due diligence requirements,then we elevated these suppliers as preferred vendors.This level of traceability helped us to build out a supply chain of exclusively certified recycled content.And in 2023,we committed to using 100 per cent recycled gold plating in all Apple-designed rigid and flexible printed circuit boards by 2025.44All gold in Apple products is responsibly sourced,whether it's primary or recycled.For more information,see our Conflict Minerals Report. | | Lithium | Regulatory barriers Availability and access Scale | We're shifting towards recycled materials recovered from batteries as they become more viable and economical.We've worked to identify sources of recycled content and test the performance of the recycled material to see if it meets our requirements—both at the material level and in its application in batteries.This rigorous evaluation is key to maintaining our products' performance as we transition to recycled content over the long term.In January 2023,Apple began using recycled lithium for the first time in some of our batteries for some products,and we're in the process of getting this material third-party certified.45 | | Paper | | For information about our progress on paper,see our feature on packaging. | | Plastics | Technical properties Availability and access Scale | We use a broad range of plastics in hundreds of product components,from speakers to keycaps.Each plastic material has different performance requirements that we must maintain as we switch to recycled or renewable sources.And we continue to diligently pursue this effort.In 2022,we introduced more than 100 parts with an average of over 40 per cent recycled plastic.These include the Apple Watch Ultra antenna lines on the housing,which use plastic from bottles that have been transformed into a stronger,higher-performance material. | | Rare earth elements | Regulatory barriers Availability and access Scale | More than 73 per cent of the total rare earth elements that Apple shipped in products in 2022 came from certified recycled sources,a significant increase from 45 per cent used in 2021.To reach this progress,we've focused on rare earth elements used in magnet manufacturing — praseodymium,neodymium,terbium and dysprosium—and worked with our supply chain to build circular supply paths for the rare earth elements.And we're featuring greater percentages of recycled rare earth element content across our latest devices:100 per cent in iPhone 14 and Apple Watch Series 8,99 per cent in iPhone 14 Pro Max and Apple Watch Ultra,and 98 per cent in MacBook Air with M2.We're also committed to using 100 per cent recycled rare earth elements in all magnets across all products by 2025.46 | | | Material | Key challenges | Progress | | --- | --- | --- | --- | | | Steel | Regulatory barriers Technical properties Scale | Since steel is a highly recycled material, we focus on keeping it in the highest-quality form possible, working to recover high-purity steel from our manufacturing scrap and our products at end of life. We're collaborating with our supply chain partners on opportunities to expand the use of recycled content into components of our products. Scaling the use of recycled steel is a key challenge because there are multiple layers in the supply chain between the raw material and the many components that ultimately become part of our products.We're making progress in realigning these supply chains to use more recycled material.In June 2022,we introduced90 per cent recycled steel in the battery tray of MacBook Air with M2一a first for Apple. | | | Tantalum | Regulatory barriers Availability and access Supply chains | We continue to address the challenge of sourcing 100 per cent recycled content at the quality we need for capacitors.We're actively investigating recovery approaches from end-of-life electronics to develop further use of this recycled material.Based on material recovery rates, our products may already contain some recycled tantalum.But to reach our goal,we have to move beyond existing tantalum supply chains that mix primary and secondary content.This requires starting from the beginning by identifying new sources of quality tantalum scrap,then building traceable supply chains around exclusively recycled material so that we can verify its use in high quantities in our products. | | | Tin | Scale | With tin,we began our efforts to use recycled material on the main logic board for iPhone 6s in 2017,and last year we expanded to many flexible printed circuit boards across many products.This resulted in our recycled tin use increasing to38 per cent on average across all product lines in 2022一up from 30 per cent in 2021.In 2023,we committed to using 100 per cent recycled tin soldering in all Apple-designed rigid and flexible printed circuit boardsby2025.47As we continue to scale use across even more components,we seek to engage an exponentially increasing number of suppliers in this effort. | | | Tungsten | Regulatory barriers Technical properties | More than 95 per cent of the tungsten used in 2022 came from recycled sources,a significant milestone from prior years.In 2022,all released iPhone models feature 99 per cent recycled tungsten across the entire device,and all released Apple Watch models feature 100 per cent recycled tungsten across the entire device.And with the help of our disassembly robots,Daisy and Dave,and our recycling machine,Taz,the tungsten from our Taptic Engine can be recovered and recycled. | | | Zinc | Technical properties Supply chains | We continue to work to identify high-quality sources of recycled zinc.This is a challenge because the material is prone to accumulating impurities during the recycling process.Each source we identify is rigorously tested so that recycled materials meet our high performance standards.In March 2022,we introduced 100 per cent recycled zinc for the first time in Studio Display and Mac Studio,which use it in the brass pins of the power lead plug and AC inlet. | Recycled content Certified recycled content is sourced from recycled Responsible sourcing Apple’s Responsible Sourcing of Materials Standard * * * FEATURE Reducing plastic and waste through packaging innovation We’re closing in on our goal to We’re closing in on our goal to eliminate plastics from our packaging 48 by 2025. To get this far, we’ve addressed many packaging components that typically rely on plastic, including large product trays, screen films, wrapping and foam We’re closing in on our goal to eliminate plastics from our packaging To get this far, we’ve addressed many packaging components that typically rely on plastic, including large product trays, screen films, wrapping and foam screen films, wrapping and foam cushioning, replacing each with fibre cushioning, replacing each with fibre alternatives. We’re now focusing on implementing innovative alternatives to the small uses of plastics across our packaging — like labels and lamination — which will help us address the remaining 4 per cent of plastic in Apple’s packaging footprint. At the same time, we’re taking steps At the same time, we’re taking steps so that our packaging is recyclable and the fibre we source comes from recycled sources or responsibly Improving the recyclability of our packaging helps reduce our overall environmental footprint. In 2022, we released a number of products with over 95 per cent fibre-based packaging, including iPhone 14 Pro, MacBook Air with M2 and iPad Air (5th generation).49 And this year, we’ve continued this work with packaging innovations for iPhone, iMac, iPad and Apple Watch to address the remaining plastic in the smaller parts of our packaging — labels and lamination. To eliminate the need for labels on the latest iPhone models — iPhone 14 and iPhone 14 Pro — we introduced digital printing directly on the back of boxes.50 We developed a custom high-resolution ultraviolet inkjet printer that can print on demand at the manufacturing facilities where iPhone is packaged. We estimate that eliminating the labels will avoid over 300 tonnes of plastic, over 150 tonnes of paper and over 3,700 tonnes of carbon emissions.51 We carefully developed our new overprint varnish to replace the polypropylene lamination while meeting rigorous quality standards for our packaging recyclability and aesthetic. * * * Each of these innovations has applications for our other products — and potential to eliminate plastics. We intend to implement these across our products to reach our goal of eliminating plastics in our packaging. For example, overprint varnish replaces the plastic lamination that accounts for approximately half the plastics remaining in our packaging. We’re also working to improve the recyclability of our packaging. Apple’s packaging design guidelines factor in packaging recyclability, requiring the use of fibre-based materials that can break back down to pulp as part of mixed-paper recycling streams, alongside materials like cereal boxes.53 These guidelines are supported by third-party assessments from firms — including Western Michigan University’s Paper Pilot Plant and the US Forest Service’s Forest Products Laboratory — and we continue to monitor evolving international packaging standards. The Conservation Fund and World Wildlife Fund, we’ve protected and improved forest management practices on more than 1 million acres of working forests in the US and China. In 2022, these forests generated enough responsibly sourced fibre to balance all the virgin fibre in our packaging, while contributing to the global supply of responsibly sourced fibre.54 Packaging fibre and plastic footprint\* (tonnes) Our goal is to eliminate all plastics from our packaging by 2025.\*\* In 2022, only 4 per cent of our packaging footprint was from plastic, and 66 per cent came from recycled fibre. Since 2017, 100 per cent of the virgin wood fibre in our packaging has come from responsible sources.† Starting in fiscal year 2022, we expanded our packaging goal boundary to better reflect our impact, resulting in an increase of about 36 per cent of our total packaging mass, as reported here. We’re now including retail bags, all finished goods boxes (including plastic content in labels and in-box documentation), packaging sent to our customers as part of Apple Trade In, AppleCare packaging for whole units and service modules (with the exception of plastics needed to protect items from electrostatic discharge), and secondary packaging of Apple products and accessories sold by Apple. Our goal boundary does not include the inks, coatings or adhesives used in our packaging In addition to our packaging footprint. We also calculate the fibre used at our corporate facilities. In fiscal year 2022, this number was 632 tonnes. Starting in fiscal year 2025, we plan to eliminate plastic from packaging. The boundary of Apple’s packaging footprint reflects the boundary of our plastic elimination goal. It includes retail bags, all finished goods boxes (including plastic content in labels and in-box documentation), packaging sent to our customers as part of Apple Trade In, AppleCare packaging for whole units and † Responsible sourcing of fibre is defined in Apple’s Sustainable Fibre Specification (PDF). * * * Product longevity Our products are designed to last. Product longevity not only makes for a better customer experience but also is an important aspect of conserving Earth’s finite resources and meeting our 2030 carbon neutrality goal. Our approach combines hardware designed to endure the rigours of everyday use, regular software updates that unlock new features and functionality, and — when needed — high-quality repair services. Apple Trade In plays an important role in product longevity. Longer-lasting devices provide our customers with options to access the value of their current device through Apple Trade In or third-party programmes. Customers can upgrade to the latest products using credit according to their device’s trade-in value. This also helps keep products in use for as long as possible so that new customers can experience Apple products and services with refurbished devices. Making more products and services available to more people is good for our business, and making those products last longer is better for the planet. We’re committed to building long-lasting devices, and part of achieving that is designing durable hardware. To minimise products’ need for repair, we refine features that improve durability, like water resistance and Ceramic Shield, which protects the display on iPhone. And we provide regular software support, so customers can update their devices to the most recent operating systems and unlock the latest features and functionality years after purchase. Building products to last Durable hardware is central to our products. Engineers in our Reliability Testing Lab assess our designs against our strict durability standards that measure the performance of materials, components and fully assembled products. They use testing methods that mimic realistic conditions in which our customers use their products, assessing many aspects of each device. In-depth user studies to understand how our customers use, and misuse, their products inform the durability standards that we’ve established. Our customers use our products every day. Which is why we design our devices with the rigours of continuous use in mind — and to minimise the interruptions of maintenance and repair. iPhone retains its value over time\* During product development, we test numerous units of a product, relying on the results to inform each successive round of design. In 2022, Apple introduced Apple Watch Ultra, with a design developed for the highest level of durability to support the needs of our most adventurous and explorative customers. Apple Watch Ultra was designed for demanding conditions that required a series of new environmental and impact tests to maintain the device’s high level of reliability. Tests that our engineering team developed included a random impact test to simulate bike falls, a gravel impact test to evaluate durability in rugged stone terrain, and additional environmental tests to support compliance with MIL-STD-810H — a standard used for military equipment that‘s also popular among rugged device manufacturers.57 This also included low-pressure testing to simulate a range of environmental conditions, from high altitude to extreme temperatures, temperature shock, chemical exposure, freezing and thawing, shock, vibration, submersion, and other assessments to emulate operations in rugged settings. Our engineers performed these tests in addition to other trusted reliability procedures developed through iteration across several generations of the Apple Watch product line. - According to the “2021–2022’s Phone Depreciation Report”, published by BankMyCell, a website that tracks trade-in and sale value of technology products. * * * Improving access to repairs We design our products to be used daily with minimal We design our products to be used daily with minimal need for repair. But if a repair is needed, customers should have easy access to convenient, quality repair services to get their product back up and running as quickly as possible. We’ve expanded our repair footprint in the past three years — nearly doubling the number of professional service locations that have access to genuine Apple parts, tools and training. Repair options include Apple Store locations, Apple Authorised Service Providers, participating Independent Repair Providers, postal repair centres, onsite service and Self Service Repair. This also includes more than 4,000 Independent Repair Providers and a global network of more than 5,000 Apple Authorised Service Providers, with more than 100,000 service technicians, that offer support for customers to get repairs. Since 2019, our Independent Repair Provider programme has enabled independent repair businesses of all sizes to access genuine Apple parts, tools, diagnostics and training. This programme expanded from the US, Europe and Canada to more than 200 countries worldwide. We also continue to expand coverage by offering repair service at our customers’ homes and offices in selected cities across the United States, providing greater convenience to our customers. We train and certify service personnel to repair Apple products. This helps them correctly diagnose the issue, leading to successful service and repair and preventing damage to the device so that it works as it should. In 2022, we introduced Self Service Repair, providing individuals with access to repair manuals and genuine Apple parts and tools through the Apple Self Service Repair Store. Self Service Repair is available in the US and Europe — including in Belgium, France, Germany, Italy, Poland, Spain, Sweden and the UK. The new online store offers more than 45 types of device repair, intended to enable customers who are experienced with the complexities of repairing electronics to service certain iPhone models, MacBook and Mac computers, and displays themselves. Global repair locations In 2022, Apple launched Self Service Repair programme in Europe Apple Authorised Service Providers, retail stores and Independent Repair Providers Self Service Repair * * * Designing products with repairability in mind We continue to make progress designing more durable products and offering customers more repair options. At the same time, we’re working to make repairs more accessible and affordable. iPhone, for example, has even more repairable modules than before, in addition to enhanced durability features and water resistance. iPhone 14 and iPhone 14 Plus introduced an updated internal design that improved the repairability of the back glass and ease of access to internal components, making fixes easier. In the new internal design, the aluminium housing and back glass are no longer one enclosure, so repairs to the back glass don’t require replacing the housing. The 13-inch MacBook Air with Retina display (2018) and later models also allow for battery replacement with a stretch-release adhesive, facilitating component access. And iPad mini (6th generation) and iPad Air (5th generation) now support the same unit battery replacement in selected locations. We’ve also expanded availability of repair parts in countries around the world to support vintage products for up to seven years. For example, a programme for Mac notebooks makes battery repair available for up to 10 years after the product was last distributed. For more information, refer to the support page about availability of service parts past warranty. Keeping products current with software updates Free software updates also support our product longevity goals. We provide these to enhance our customers’ experience by allowing them to access the latest features available to their device for as long as possible. This includes important security and privacy updates. As we continually improve the operating systems that power our products, we also make sure that each software release runs seamlessly on all supported devices. Customers can benefit from the latest software updates whether they’re using a brand-new device or one that’s several generations older. iOS 16, our most recent release, extends support back to iPhone 8 (2017). iPadOS 16 compatibility goes back to the fifth-generation iPad (2017), and macOS Ventura supports MacBook models from 2017 and later. The updates in each operating system make the latest capabilities — from Messages and the Lock Screen to Continuity features — available to a broad user base. These updates also provide more customers with access to the newest security and privacy features. Software updates are popular with our customers. By February 2023, more than 80 per cent of all iPhone devices introduced in the last four years had updated to iOS 16, and iPadOS 16 was being used on 50 per cent of devices introduced in the last four years. These continually high rates of adoption make it clear that our customers see value in software updates. We also offered customers using iOS 15 and iPadOS 15 the option to update only the security features on their device for a while — giving them more time, if they wanted it, to update the entire operating system. Extending the life of products and parts through refurbishment and reuse Products that last longer make the best use of the Products that last longer make the best use of the resources that go into them. Refurbishing and reusing products helps lower the impact that each device has on the environment — including carbon intensity per year of life. We extend the life of our products by building them to serve more than one owner — enabling customers to exchange devices for an upgrade. We collect devices for refurbishing and reuse through several programmes, including Apple Trade In, the iPhone Upgrade Programme, AppleCare and our corporate Hardware Reuse Programme. In 2022, we sent more than 12.1 million devices and accessories to new owners for reuse. The Apple Trade In programme, available in 25 countries, provides customers with product end-of-life options — they can access the value of their current device if they upgrade to a newer model, or they can trade in their device for free. Our customers drive the success of our trade-in programmes and those of third parties. Customers who customers see value in software updates. We also offered use these options help realise the long-term value that we’ve designed and built into our products — whether through trading or passing down their devices or by while — giving them more time, if they wanted it, to update purchasing refurbished products. Each product that‘s refurbished and reused contributes to reducing our overall environmental footprint. Some device parts can also be reused. We’re finding new ways to access these valuable components within our devices. After recovery, these parts can be used to replace existing components or repurposed in new creative applications. We continue to expand the number of parts that can be recovered and refurbished to our high quality and performance standards, and reused as replacements. This enables us to reduce the need to create spare parts as we repair devices. We also remain focused on innovation opportunities to reuse accessories sent for recycling. For example, we send collected power cables and adapters that still function to our final assembly sites, where they power products used on production lines. * * * iPhone longevity journey Repairable at retail stores, Apple Authorised Service Providers and central repair locations Features to enhance durability 2007 iPhone (1st generation) SIM tray 2010 Increased durability and repairability enhance iPhone longevity iPhone 4 2016 iPhone 7 SIM tray Battery Haptics Main logic board Display Rear camera Display 2018 - Splash, water and dust resistant: IP67\* Sapphire crystal lens cover Splash, water and dust resistant: IP67\* iPhone X SIM tray Battery Rear camera SIM tray Splash, water and dust resistant: IP67\* Rear camera 2022 Splash, water and dust resistant: IP68\* Sapphire crystal lens cover Sapphire crystal lens cover Surgical-grade stainless steel Display SIM tray Battery TrueDepth camera Splash, water and dust resistant: IP68\* Bottom speaker Top speaker Rear camera Main logic board Top speaker Enclosure Display Enclosure TrueDepth camera Splash, water and dust resistant: IP68\* cleaning and drying instructions. Liquid damage not covered under warranty. \\*\\* Back glass repair is available for iPhone 14 and iPhone 14 Plus. cleaning and drying instructions. Liquid damage not covered under warranty. \\*\\* Back glass repair is available for iPhone 14 and iPhone 14 Plus. * * * Product end of life Even after a product reaches the end of its life, the materials within it can serve the next generation of products. Each time we effectively recover materials from end-of-life products, we enable circular supply chains — and make the best use of finite resources. This takes collaboration — with customers who trade in their products when they’ve finished using them and with recyclers capable of recovering materials effectively from devices. This helps to reduce the need to mine new materials. It also saves the considerable energy expended in extracting and refining materials, driving down emissions and conserving resources. Optimising recycling through partnerships and innovation and innovation Our recycling strategy is a key part of our efforts to create circular supply chains. We’re working to make it easier for customers to recycle our products. We provide or participate in product take-back and recycling collection programmes in 99 per cent of the countries where we sell products. Our customers can trade in devices they’re no longer using for reuse or recycling at retail locations and through recycling programmes offered by local operators. They also have the option to do so online through platforms like Apple Trade In. In 2022, we directed more than 40,000 tonnes of electronic scrap globally to recycling with the help of customer and employee programmes. Our customers play an important role in continuing the growth of these programmes, and we encourage them to engage in these programmes by returning devices after use. We work with best-in-class recyclers to make sure we can maximise the potential of the recycling materials stream, as well as drive our efforts to close the loop on key materials. We define best-in-class recyclers as those capable of recovering materials at high rates, and doing so with the best environmental and safety performance. We verify recyclers’ compliance with our Code and Standards through independent third-party assessments. In addition, we look for our recyclers to maintain regional leading certifications such as Weeelabex, e-Stewards® or R2. As we expand our partnerships with recyclers across the globe, we’re maintaining the rigorous standards we require of all suppliers. We assess our recyclers regularly for compliance with labour and human rights, security, and environment, health and safety (EHS) standards, regulations and best practices. In 2022, we conducted 61 recycler assessments. We’ve increasingly sought out specialist providers capable of handling specific material streams to increase the quantity and quality of materials, and we’ve seen volumes handled by these suppliers grow by over 70 per cent in 2022. This global footprint of recyclers also helps us build a more resilient recycling supply chain and innovate with more suppliers around the world. to continue devising new recycling solutions that can be shared through training and ongoing support. We help these partners develop the ability to disassemble our products and recover as much material as possible while minimising waste. In 2022, we expanded our Apple Recycler Guides to include certain models of iPhone and the new Studio Display. These guides are developed by our engineering teams to help recyclers optimise recovery and make sure that the processes can be completed using tools and procedures available to a wide range of professional recyclers. The guides provide valuable insight into the recycling process, including recommendations for directing disassembled parts to the best downstream facilities for resource recovery. As we continue to improve material recovery through collaboration, we’re increasing the availability of high-quality recycled content on the market for all. Through the Apple Education Hub, part of our Supplier Employee Development Fund, we’ve also supported efforts to improve recycling capacity, quality and efficiency with our US-based recycling suppliers with a lean manufacturing educational programme. Embracing lean methodologies and management systems can bolster employee engagement, mitigate safety issues and improve recycling economics. We work with best-in-class recyclers to drive our efforts to close the loop on key materials used in our products. * * * Beyond our programmes around the world, we continue to explore ways to make e-scrap recycling even more convenient for our customers. Through our membership with Corporate Eco Forum (CEF), we’ve collaborated with Amazon, Dell Technologies, Google and Microsoft on a doorstep electronics waste recycling pilot programme in the US. Launched in February 2022, it offers residents in the city of Denver, Colorado, direct pickup of e-waste from their homes upon request. This pilot will enable us to learn more about consumer behaviour, with an ultimate goal of making recycling more convenient for users. We’re also continuing our partnership with Atea — a leading provider of IT infrastructure solutions in the Nordic and Baltic region — to collect end-of-life iPhone devices for recycling with our Daisy robot in the Netherlands. We encourage more of our customers around the world to engage with Apple to return endof-life devices to us so that materials are returned to the circular economy. To learn more about our recycling programmes, visit the Apple Recycling Programmes web page. Developing new approaches to disassembly and recovery Innovation plays a key role in realising the potential of Innovation plays a key role in realising the potential of recycling — not just for Apple products but throughout our industry. We continue to develop better, more efficient means of disassembling products that maximise material recovery while minimising waste. Our Material Recovery Lab (MRL), an R2-certified facility in Austin, Texas, focuses on assessing the recyclability of our products, helping inform design decisions that support disassembly and recovery. The MRL’s work has led the way in automated approaches to material recovery with our robots Daisy, Dave and Ta z . Daisy, our disassembly robot, is capable of quickly and skilfully taking apart 23 models of iPhone — including various models between iPhone 5 and iPhone 12 — into discrete components. This vital step helps improve material recovery and recycling and yields clear results. From just one tonne of iPhone main logic boards, flexes and camera modules recovered by Daisy, our recycling partner is capable of recovering the same amount of gold and copper as would be found in more than 2,000 tonnes of mined rock.58 We hope other innovators follow suit. The US Patent and Trademark Office issued Apple five patents related to Daisy, and we’re willing to license these to researchers and other electronics manufacturers that are developing their own disassembly processes.59 Dave, a robot specialising in disassembling the Taptic Engine, enables the recovery of rare earth magnets as well as tungsten and steel. Taz, which helps recycle modules by separating magnets containing rare earth elements from audio modules, is designed as an alternative to the conventional shredder that many recyclers rely on. While rare earth elements are typically lost in conventional shredders, Taz is designed to access these valuable materials, improving our overall recovery rate. We’re also developing new technologies at our Santa Clara Valley, California, asset recovery centre that leverage automation and machine learning to facilitate recycling processes that typically require manual sorting, which can be time-intensive and error-prone. This work aims to create low-cost solutions that our suppliers can deploy to recover more materials, freeing up their employees for more complex tasks that can’t be easily automated. The benefits we’re trying to achieve aren’t strictly resource based. We’re also working to improve the material handling efforts of demanufacturing. In 2022, we began deploying overhead projector–based augmented reality systems to recyclers. This system projects instructions for demanufacturing processes onto the work surface. This innovation is designed to further improve safety, productivity and efficiency. Designing for the next generation of recycling The greatest opportunities for recycling are yet to The greatest opportunities for recycling are yet to come. We’re committed to a long-term approach to recycling innovation, relying on and continually improving current approaches while nurturing new and emerging technologies. By fostering research and development, we can identify opportunities for transformative changes. We invest with this in mind. And we continue to support initiatives that set out to redefine disassembly and material recovery. We’re investing in recycling innovations that can have industry-wide impacts. For several years, we’ve worked with Carnegie Mellon University’s Biorobotics Lab in the School of Computer Science’s Robotics Institute to identify and disassemble e-scrap. This innovation has the potential to enable recyclers to recover the materials at a higher quality. The software from this project will be open source and available to others in the industry who are working to maximise the recovery of recyclable materials. We’ve also worked with the lab to improve the accuracy of disassembly and the recovery of materials through X-ray imaging with RGB imaging. And we’re optimising our robots’ abilities to handle objects and adjust to contact, enabling them to “feel” by using high-frequency force feedback and machine learning. Through this work, we’re driving towards developing truly intelligent disassembly technology. * * * Feature Our position on circular economy policy The responsible use of natural resources is a critical part of Apple’s environmental objectives. Extracting the materials that make up our products comes with significant environmental costs. We work to minimise these by using materials efficiently so we can one day build all our products out of recycled or renewable materials. This circularity ambition is an integral part of our strategy to meet our goal of being fully carbon neutral in 2030, including across the lifetime use of our products. Global demand for electronics is increasing, and with it, so is the demand for the materials that make up those products. Awareness is growing of the finite nature of some of these resources, such as critical minerals or rare earth elements — as well as of the complex, globally interrelated nature of the supply chains that electronics rely on. Circularity plays an important role in helping realise environmental benefits while building supply chain resilience. Policy can be part of the solution, helping transition from the older “take-make-dispose” linear model to circular supply chains. This reflects changing technologies as well as current and future demands, making circular supply chains competitive with traditional, extractive ones. Over the last year, Apple has reached new milestones in our products and our efforts to demonstrate what’s possible in circularity. We’re aiming for even greater use of recycled content in our products. Our commitments include using 100 per cent recycled cobalt — a critical mineral — in Apple-designed batteries and using 100 per cent recycled rare earth elements in all magnets, both by 2025.60 And advancements in recycling technology help make this possible. For example, cobalt recovered from iPhone batteries disassembled by Daisy is returned to the market. And Taz — which we developed as an alternative to traditional shredders for breaking down electronics — enables us to recover even greater amounts of rare earth elements. This more efficient and economical approach makes these materials available to others beyond our supply chain. We’ve also expanded our Self Service Repair programme from iPhone 12 and iPhone 13 to include MacBook Air and MacBook Pro notebooks with the M1 family of chips. This makes repair manuals and genuine Apple parts and tools available to customers through the Apple Self Service Repair Store. We continue to build, support and participate in circular supply chains. But challenges remain to achieve fully circular electronics supply chains. Policy can help accelerate progress. A thriving, responsible, circular economy supports critically important health, safety and environmental protections. It can also enable closed-loop supply chains to be cost and operationally competitive with linear models. Harmonised policies can remove barriers and drive the transition to circularity by meeting the following high-level objectives: Sourcing and recycling materials responsibly: • Policies should seek to improve strict labour, human • Policies should seek to improve strict labour, human rights and environmental standards throughout recycled and primary materials supply chains. • Circularity should be a priority for policies that aim to recycled and primary materials supply chains. • Circularity should be a priority for policies that aim to address sources of supply over new ways or locations for resource extraction. Recycling electronics will help unlock the valuable materials in those devices for reuse, reducing reliance on newly mined resources. Designing for longevity: • Policies should strive to maximise product longevity • Ecodesign policies are most effective in delivering environmental benefits when they’re product specific and globally aligned. Improving material recovery: • Support the development of efficient collection • Support the development of efficient collection programmes that engage customers, protect environmental and human health, and capture high volumes of electronics for reuse, repair, refurbishment and recycling. • Waste regulations should be consistent and Apple is working to realise a circular economy through policy engagement and advocacy. • Waste regulations should be consistent and harmonised across geographies, enabling efficient, commercially viable movement of materials. Such policies can drive maximum materials recovery, prevent downcycling, and help enable parity with newly mined resources while maintaining critical environmental and social protections. Improving recycling: • Incentivise the inclusion of recycled content in • Incentivise the inclusion of recycled content in products by supporting the generation of increased, high-quality material supply, including improving waste collection and recycling infrastructure, the development of global waste treatment standards and recycled content quality standards. • Support the development of advanced electronics Apple supports the ratification of the Basel Convention by the United States. This would help enable circular supply chains and address some current barriers to efficient materials recovery and reuse. The Basel Convention is the global regulatory framework guiding how some waste — including electronics and e-scrap — can be moved for recovery, recycling and disposal. The convention provides critical environmental and social protections, especially against moving hazardous waste to geographies that lack the resources to manage it in an environmentally sound manner. Countries that have ratified the convention can move materials covered by the agreement between themselves, following the agreement’s regulatory requirements. • Support the development of advanced electronics recycling facilities that can recover more types of resources, including materials that are difficult to recover or of lower value. * * * Water Water is among the planet’s most precious resources. We consider the full life cycle of water as we bring our products and services to life. And we know that to protect this resource, we must go beyond our corporate footprint, across our supply chain and into the communities and watersheds where we operate. Climate change continues to impact global water resources — making freshwater increasingly scarce, flooding more frequent and access more vulnerable. These effects can be felt in the communities where we and our suppliers operate, which is why we’re committed to managing these resources responsibly. We can do so by reducing our freshwater withdrawals and returning clean water to the watershed. We can limit the use of freshwater. And, where appropriate, we can rely on alternative sources such as recycled water for functions like irrigation and cooling so that freshwater is available for people and ecosystems. Water quality is another challenge. We’ve made it a priority to maintain the quality of the water that we use and discharge so it will be suitable for its next use, contributing to the overall health of local watersheds. Water is a community resource, and it demands equitable distribution and access, which requires a collective approach to challenges and local solutions. This is why we’re committed to engaging watershed stakeholders through supporting Alliance for Water Stewardship certifications for our suppliers and key corporate facilities, as well as by participating in local watershed management projects. We aspire to advance water security in the places where we operate through actions that deliver on our guiding principles of improving availability, quality and access. We’ve aligned our approach across five strategic pillars: low-water design, site efficiency and conservation, site water stewardship, replenishment and nature-based solutions, and leadership and advocacy. This strategy is informed by geographically specific insights. Resources like the World Resources Institute (WRI) Aqueduct Water Risk Atlas provide detailed insights on local watershed health, such as baseline water stress. Understanding that 37 per cent of our corporate and supply chain water use is located in areas of high or extreme basin stress helps inform the prioritisation of our efforts.61 We continue to monitor and manage water use in our owned-and-operated facilities, and we go beyond the typical practice in our industry by further engaging with our suppliers across our manufacturing supply chain sites to better understand their water use. Only by considering impacts throughout the value chain can we achieve the water management goals that we’ve set for ourselves. Our water strategy LOW-WATER DESIGN LOW-WATER DESIGN Minimise water impacts in the design of products, services and sites. SITE EFFICIENCY AND CONSERVATION Improve the performance of existing sites and processes. SITE WATER STEWARDSHIP Demonstrate responsibility beyond our facilities through watershed level management. REPLENISHMENT AND NATURE-BASED SOLUTIONS Improve water availability, quality and access through regenerative approaches. LEADERSHIP AND ADVOCACY Advance water management through policy, advocacy and * * * Low-water design We approach low-water design by first focusing on site selection, conducting a water risk evaluation to determine whether a potential site is in a water-stressed area or not. We aim to avoid locating water-intensive processes in water-stressed locations, so we either use the results to select a more appropriate site where possible or to mitigate the impact of our expected water use. Then we look to systems and processes that use less water or reuse water, so that we can limit excess water consumption and, where possible, eliminate waste. We also design solutions to manage the quality of the water that we return to the watershed. In our corporate operations, we discharge the majority of our wastewater to the sanitary sewer. Up to 44 per cent of the water we use at our corporate locations is discharged back into the local water system rather than consumed.62 We monitor the water quality from sites where we have an industrial wastewater discharge so that each location meets or exceeds local discharge requirements. One example is our new Capstone campus in Austin, Texas, where we aim to achieve net-zero water use. To accomplish this, the campus will rely on an onsite wastewater reuse system, as well as condensate recovery and stormwater capture, limiting potable water use to potable purposes only. This effort will avoid 50 million gallons of freshwater use, relying instead on non-potable water for cooling and toilet flushing.63 This cooling approach will also allow us to achieve 28 million kWh in energy savings annually at the location. In our supply chain, a majority of water is used during manufacturing. For example, in 2019 we launched a pilot programme at a manufacturing location in China as part of our anodising improvement programme with the aim of reducing, and eventually eliminating, potentially hazardous discharge as well as reducing water and chemical use. Anodising is the most water-intensive process in the metal-finishing process of enclosures. As part of the pilot, we employed several water efficiency approaches, including using cascade and counterflow rinsing processes, which helped retain 75 to 85 per cent of the water used during metal finishing. This process improvement has the potential to save millions of gallons of freshwater annually when applied at scale. The aluminium anodising process is typically water-intensive. In 2019, we launched a pilot to seek to eliminate hazardous discharge and increase water efficiency from anodising. The cascade and counterflow rinsing processes, which helped retain 75 to 85 per cent of the water used during metal finishing, could save millions of gallons of freshwater annually when applied at scale. * * * Water use at corporate facilities We track our corporate water use for our data centres, retail stores, distribution centres and corporate offices. We also capture rainwater and recover condensate as alternative water sources for use onsite. 1,272 Mgal FRESHWATER We define freshwater as drinking-water quality, the We define freshwater as drinking-water quality, the majority of which comes from municipal sources and less than 5 per cent of which comes from groundwater. 9% RECYCLED WATER We source recycled water as a key We source recycled water as a key alternative to freshwater and use it primarily for irrigation, cooling systems and toilet flushing. Our recycled water comes mostly from municipal treatment plants, with less than 5 per cent coming from onsite treatment. Site efficiency and conservation One challenge we’ve committed to addressing is reducing water use, even as we grow in our corporate facilities. Separating growth from water use requires dedicated focus. In 2022, our facilities used about 1.3 billion gallons of water in our direct operations, a 9 per cent increase from 2021. Some of this growth reflects the return to office from the COVID pandemic, but most of the increase was driven by corresponding growth in our data centre cooling loads. We expect currently implemented improvements in water use effectiveness (WUE) and new dry cooling designs at our data centres to decouple water use from electricity use. These efforts start at the local level. In Santa Clara Valley, California, where our corporate headquarters are located, we’ve pursued water conservation across our landscaping efforts. This includes six new projects in 2022, saving 1 million gallons of water. We intend to expand this work to an additional 16 conservation projects in 2023. At our data centres, we’ve upgraded and replaced servers to reduce our cooling water usage by 50 million gallons annually. We’ve also piloted a resin water treatment system that resulted in a 30 per cent reduction in makeup water use and up to 60 per cent reduction in discharge.65 Based on this success, we are implementing this technology at our data centres in Prineville, Oregon, and Mesa, Arizona. Additionally, we piloted a plant-based water treatment using sustainably harvested sphagnum moss at several data centres, helping eliminate the need for biocides and corrosion inhibitors. This system, which uses compostable, natural sphagnum moss to improve water quality, can further improve water savings. We implemented this at our Reno, Nevada, data centre and have begun permanent installations in Maiden, North Carolina, and Mesa, Arizona. We’re also expanding our efforts to recover water that’s otherwise wasted. Six new condensate recovery installations — including four in Santa Clara Valley and installations at our new Capstone campus in Austin, Texas, and at our Maiden, North Carolina, data centre — harvest excess water from cooling systems to be redirected to cooling towers and for landscaping use that would otherwise be discharged. * * * Site water stewardship We look beyond our operations and those of our suppliers to address shared water challenges. This involves engaging with the communities around our facilities for the protection of local watersheds. Since 2018, we’ve partnered with the Alliance for Water Stewardship (AWS) to advance the AWS Standard, the first global framework to measure responsible water stewardship across social, cultural, environmental and economic criteria. In 2020, Apple joined the AWS board of trustees with the objective of highlighting water stewardship opportunities to our suppliers and promoting collective action on shared water challenges with the Information and Communications Technology sector. Through AWS, we’ve been able to certify facilities that meet the AWS Standard, considering benefits and recognising impacts to local water catchments, communities and ecosystems. Our Prineville, Oregon, data centre was the first facility of its kind to receive AWS certification in 2021. In January 2023, our Reno, Nevada, and Mesa, Arizona, data centres also achieved certification. We are on track to certify all of our owned and operated data centres by 2025. We’re also active in the communities where our facilities are located. In Prineville, we supported the Deschutes Land Trust in the protection of the Ochoco Preserve, which is situated at the confluence of the Ochoco and McKay creeks — a major salmon and steelhead trout habitat in the Crooked River basin. In Reno, Nevada, and the surrounding areas, we continue to partner with The Nature Conservancy for restoration and clean-up efforts of natural habitats along the Truckee River. Replenishment and nature-based solutions In partnership with the Bonneville Environmental Foundation, we’re funding the removal of the invasive Arundo donax cane species in the San Fernando Valley area of the Los Angeles River watershed. This plant species monopolises space, sunlight and water, displacing wildlife and stressing local watersheds. This removal effort addresses water availability in the watershed that feeds the greater Los Angeles area and will deliver 46 million gallons of replenished water annually. A key element to addressing water availability, quality and access is replenishment efforts and nature-based approaches to restoring watersheds. Our goal is to replenish our corporate freshwater withdrawals in high-stress locations. This work is underway with some key projects. from the large aquifer that underlies Prineville, treats the water, and then conveys it uphill to a smaller local aquifer. In the summer, this stored water is pumped to meet our cooling needs so that our water usage doesn’t affect city water supplies. This response to seasonal variability helps provide water security and drought resilience for the region. We’re also engaged with the Uptime Catalyst Facility in India, one of our key corporate locations with water, sanitation and hygiene (WASH) challenges, to introduce an innovative performance-based programme that allows clean, cold water to be more widely distributed and maintained. This will generate a volumetric water benefit annually, equivalent to our direct operations freshwater withdrawal in India.67 Leadership and advocacy Our work on water affords us another opportunity: to lead with others and push for change across industries. We collaborate with groups, including AWS and the Responsible Business Alliance (RBA), and speak to audiences that are in a position to impact their communities and industries. In May 2022, we addressed wildlife and stressing local watersheds. This removal effort the AWS Global Water Stewardship Forum in Edinburgh to discuss our stewardship strategy supply chain. In October 2022, we addressed the RBA’s annual conference in Santa Clara, California, with AWS to promote collective action on key catchment identification In 2018, we partnered with the City of Prineville to develop in the ICT sector in order to further accelerate supplier participation in water stewardship efforts, including supplier hubs in priority water basins. In 2022, we partnered with Frank Water in India to develop and implement a water resource management plan through a community-based WASH grant that focuses on increasing water stewardship through improving decisionmaking around water and climate resilience. Frank Water works alongside local partners so that safe water, sanitation and hygiene are within reach for communities experiencing challenges in accessing water resources. And in 2023, we joined the UN Water Conference to speak to the importance of corporate leadership on water, emphasising the importance of supply chain actions. We also take positions on issues that matter to us and where we can try to make a difference. We’re engaging with the development of the next phase of Volumetric Water Benefit Accounting methodology with the WRI and others to further the replenishment and nature-based solutions industry. * * * Zero waste All waste that gets sent to landfill comes with costs. These can be measured in the resources and emissions that go into discarded materials. And too often, the most vulnerable communities around the world carry a disproportionate burden of these costs and others associated with waste disposal. We’re working to change this by prioritising waste-free operations at our own facilities as well as those of our manufacturing suppliers. At our offices, retail locations, data centres and construction sites, we’re implementing systems and approaches to avoid sending waste to landfill. We’re asking our manufacturing suppliers to do the same. Our focus is on eliminating waste generated during manufacturing and engaging with local specialist recyclers and composters to redirect materials from landfill. This requires innovation and collaboration with local partners to make the best use of our resources. We measure our progress in the amount of waste we divert at the source and by our ability to protect the communities where we and our suppliers operate. Reducing waste at our corporate facilities We’re reducing the amount of waste generated in our corporate operations and directing more to recycling programmes — an effort that has continued since launching our Zero Waste Programme in 2018. Initially, we focused on US campuses and retail locations. Since then, we’ve grown in the US and around the world while remaining committed to sending zero waste to landfill. In 2022, recycling and composting efforts allowed us to achieve a waste diversion rate of 71 per cent — up from 68 per cent in 2021 — limiting landfill waste from our global operations to about 16,000 tonnes.68 Despite occupancy increases during our transition from COVIDrelated temporary closures, our overall waste generated remained low. We haven’t interrupted our efforts to make progress on waste diversion since achieving our first zero-waste certification, UL’s Zero Waste to Landfill validation, in 2015 for our campus in Cork, Ireland. In 2023, our Taiwan Technology Center became the second Apple facility to receive the UL Solutions Zero Waste to Landfill validation.69 And our data centre in Viborg, Denmark, became the third facility to receive TRUE certification in 2023, joining our data centres in Mesa, Arizona, and Prineville, Oregon.70 These facilities achieved TRUE Platinum, the highest certification level. TRUE recognises facilities that divert more than 90 per cent of waste for recycling, compost or reuse. To accomplish this, we improved waste separation through infrastructure upgrades and moved away from single-use materials to reusable alternatives. These certifications also reflect efforts working and coordinating with local partners, from composters to specialist recyclers capable of handling specific waste streams, like plastic wrappings and foams. By partnering with these providers, we’re able to support the local economies engaging in recycling and composting as an alternative to municipal waste disposal programmes. Promoting material reuse, composting and waste diversion across our corporate and retail locations retail locations As our company grows and changes, we’ve prioritised finding opportunities to recycle construction and demolition waste. In 2022, we achieved a waste diversion rate of 83 per cent — approximately 23,500 tonnes — from corporate office and data centre construction and demolition projects through recycling and source separation efforts. We expanded source separation efforts for our corporate office and data centre construction projects — from 7.2 per cent participation in 2021 to 36 per cent across projects in 2022. The locations using this approach saw a 10 per cent higher overall diversion rate. An example of the effectiveness of source separation is our new office at Battersea Power Station in London. Our team there achieved a 98 per cent diversion rate of construction waste, including 272 tonnes of plasterboard, one-fifth of which was directed to agricultural uses such as mushroom cultivation and farming. The project reused timber onsite and donated key construction materials, including plasterboard, for local uses. The location also recycled personal protective equipment used during construction and build-out. In 2023, our Viborg facility in Denmark became the third to receive TRUE Platinum certification, which requires more than 90 per cent of waste from a facility to be recycled, composted or redirected for reuse. * * * We also focus on using less so that we reduce the waste to be recycled or sent to landfill. By identifying significant sources of waste — like packaging materials and commonly used equipment — and then working with our suppliers, we’ve found bulk packaging solutions and recyclable and reusable alternatives. Across our data centre sites, we’re switching to reusable air filters. Previously, there were no off-the-shelf reusable air filters available for our application. In 2019, we partnered with an industry-leading automotive filtration and technology company to design a sustainable solution that met very specific design criteria for our design centres. And more than 38,000 reusable high-performance air filters — which are available for other companies to use — have been placed in Apple-managed facilities worldwide to date. By replacing disposable air filters with reusable ones, we avoid landfilling 23 tonnes of dirty filters each year. Further, the reusable air filters are more energy efficient, leading to 35 per cent savings in fan energy use. And we intend to rely exclusively on reusable filters at data centres from now on. We’re working to keep waste that’s unavoidable out of landfill. This requires sorting items correctly to redirect waste to recycling and composting where possible. To enable this, we make clearly labelled containers available throughout our locations. For example, we’re working to reduce contamination and increase recycling rates by continuing to roll out consolidated bins for recycling, composting and landfill, and by improving signage. We recycle paper, plastic, aluminium and cardboard materials at most of our corporate and retail sites worldwide. And more than 450 of our corporate offices, retail stores and data centres are participating in composting. We’re also using technology to improve our diversion rates at corporate locations. At our offices in Santa Clara Valley and Culver City, California, we piloted waste sensor technology, a system that employs cameras and data collection within waste containers to monitor contamination and increase diversion efficiency. The data provides collectors with accurate information on volume to inform scheduling of pickups and the use of appropriately sized hauling containers. Our employees are one of our best resources in achieving our zero-waste goals. They play a critical role in reporting on waste and facilitating waste audits at our locations. We support these efforts with training, education and access to resources. In 2022, we standardised waste reporting requirements across all our data centres and corporate offices and implemented a centralised dashboard system. Our retail auditing programme examined 13 locations in North America, documenting the material characteristics of our waste. This data will allow for better assessment Driving solutions internally through communication, reporting and education Our employees are one of our best resources in achieving of our waste practices and opportunities to improve our approaches. We also launched site-specific zero-waste training for all Apple data centres. All new data centre employees are now required to complete the site-specific zero-waste training and receive manager approval of completion. Finally, we’ve standardised signage at our data centres with contextual signs for logistics and operations, as well as for office and administrative sites. Taking a zero-waste approach with our suppliers We’re committed to leaving no waste behind in the communities where we build our products. Our suppliers, recyclers and waste solution providers are central to achieving this goal. We’re working with them to eliminate waste from our manufacturing processes. Since we launched the Zero Waste Programme for our manufacturing partners in 2015, we’ve continued to make considerable progress. And this programme has expanded to include more than 300 supplier facilities across 14 countries and regions. In 2022, we shifted our Zero Waste Programme from an and tools to help suppliers track their waste, set wasteminimisation goals, and create improvement plans towards achieving zero waste for their operations. We make available to all facilities participating in the programme resources and guidance on how to reduce waste and then reuse, recycle or compost the waste they do create. Suppliers at these locations can also access tools to improve waste management and, in some cases, onsite support. The programme is making an impact: in 2022, suppliers redirected 523,000 tonnes of waste from landfill (up from 491,000 tonnes the previous year), bringing the total to 2.5 million tonnes since the programme’s inception — the equivalent of eliminating 3.1 million square metres of landfill space. Throughout 2022, 100 per cent of established final assembly sites — including for iPhone, iPad, Mac, Apple Watch, AirPods, HomePod, Apple TV and Beats — maintained zero-wasteto-landfill operations.71 Over 150 Apple supplier facilities are zero-waste verified. And we’re working on the next challenge in achieving zero waste, which is a level deeper into the subassembly module suppliers who assemble the individual components that make up Apple products. The waste stream at this level is often more complex than final assembly sites, but we’re making progress. This year, module suppliers — including core technology suppliers — that are participating in the Zero Waste Programme increased by 50 per cent. Eliminating landfill waste across these sites marks both a significant effort and an achievement, diverting more than 357,000 tonnes of waste from landfill. 2.5 million tonnes of waste were redirected from landfill by supplier facilities as part of Apple’s Zero Waste Programme. * * * Getting to zero through innovation Innovation plays a significant role in advancing progress towards zero waste within our supply chain. We use novel recycling strategies and approaches to divert greater quantities of waste from landfill in our supplier facilities at even greater rates. But we also pursue material solutions to impact the waste streams coming into these facilities to simplify and maximise the recyclable content that our suppliers work with. We’ve partnered with our suppliers and local businesses to create new recycling options and develop opportunities for material reuse. Recycling and reuse provide environmental benefits and can help our suppliers increase material efficiency while reducing the costs associated with material waste. At final assembly supplier sites, more of our suppliers use the recyclable and reusable alternatives that we helped develop for key sources of waste. In particular, our Recyclable Protective Films (RPFs) that protect products during manufacturing and the reusable trays used to deliver modules safely through assembly sites have helped our suppliers reduce waste. We’ve also achieved reductions by developing thinner stretch wrapping film used on pallets for final product packaging. This wrapping film is a significant portion of the virgin plastic usage in our supply chain. The thinner film reduces the amount of plastic needed by up to 50 per cent. We’ve shared the formula for our proprietary thinner stretch film with our suppliers’ current wrapping film vendors to help accelerate its adoption while producing stronger wrapping films for product packaging. Another opportunity for waste reduction is to decrease the amount of plastic tape used on our production lines — and to develop a stronger paper tape that can act as an alternative. An audit of our production processes showed that the plastic tape used to secure parts before assembly is often mixed with paper tape, making it difficult to sort and divert from landfill to a recycling process. And in many cases, the plastic tape wasn’t needed. We found that for 75 per cent of the parts secured with plastic tape, paper tape could perform equally well. We then worked with an industry-leading tape producer with the technology to produce a strong, lower-cost paper alternative. This new paper tape alternative was put to use for 200 parts, eliminating 1,200 tonnes of virgin plastic from our waste streams. Engaging with suppliers to reduce waste We work closely with our suppliers to realise our zero- Engaging with suppliers to reduce waste We work closely with our suppliers to realise our zerowaste goals. This work faces a range of challenges, including a lack of access to recycling technologies, the absence of local infrastructure, and the lower value of recyclable material that impacts the economics of recycling. We engage with our suppliers to address these challenges through knowledge sharing. The Waste to Resource database we designed provides access to available technologies and local recyclers that we’ve collected from the suppliers we work with. The database provides information on more than 1,000 resources across more than 177 cities in China, Thailand and Vietnam — a number that grows as we and our suppliers share valuable resources through the database. As more of our suppliers achieve their zero-waste goals, we’re able to learn and share more information. We plan to make this resource public for the benefit of the entire electronics industry. Reducing waste is an ongoing collaboration between us and our suppliers and recycling vendors. We’re actively sharing best practices and innovative approaches to reduce waste; and we’re matching our suppliers with capable recycling technologies that help eliminate waste throughout the process of manufacturing our products. allows for third-party zero-waste verification at a systems level rather than at a site level. The assurance procedure has allowed us to accelerate the verification process significantly and establishes a new model that companies across industries can employ to verify zero-waste programmes at scale. This streamlined approach has brought even more suppliers into our programme, with more than 150 validated in 2022 — a 50 per cent increase from the previous year.72 We also provide support for our suppliers in verifying their zero-waste efforts. The foundation of our Zero Waste Programme since launch has been following the UL 2799 Zero Waste to Landfill Environmental Claim Validation Procedure (ECVP), which requires at least 90 per cent diversion through methods other than waste-to-energy. Through this standard, our supplier facilities can certify against clear benchmarks for waste diversion, including Platinum, Gold and Silver levels of verification. We’ve spent the last seven years expanding this programme throughout our supply chain, with suppliers in China, India and Vietnam becoming UL validated. In 2022, Thailand joined that list when a local Apple supplier became the first in the country to receive UL 2799 ZWTL Gold validation. Since we switched from individual site verification to system-level verification, suppliers participating in the assurance programme can easily apply their verification statements from UL. Following the switch, many suppliers maintained their individual certification for their own purposes. * * * Feature Green buildings Each space we build presents an opportunity to realise the type of world we’d like to live in — one that’s inclusive and accessible, reflects the value we place on creativity and innovation, and furthers our environmental goals. Whether we’re constructing a data centre or corporate office or restoring a historic site to house a retail outlet, we have an opportunity to advance our vision. Our environmental approach to design and construction adheres to industry-recognised best practices for green buildings that promote renewable energy, water conservation, energy efficiency and responsible material sourcing. As of 2022, 100 of our corporate offices and data centres across the world are LEED (Leadership in Energy and Environmental Design) or BREEAM (Building Research Establishment Environmental Assessment Method) certified. That number grows each year as we develop more than 17 million square feet of green building space globally. Our global footprint requires that we adapt to the needs of different locations and climates while pursuing our overall objectives. In 2022, four Apple sites in the US and China earned LEED Gold certification. One example is for the construction of a corporate facility in California, where we achieved an 80 per cent diversion rate for construction materials — 15 per cent more than the average diversion rate typically observed in this region — by separating the majority of recovered materials and sending them to local specialist recyclers. We sourced FSC-certified wood for 98 per cent of the wood used in this project. And 50 per cent of its structural materials were sourced from regional manufacturers less than 800 kilometres away, minimising material transport by using local suppliers. We bring a similar environmental approach to our retail store development. In Vancouver, Canada, we reopened Apple Pacific Centre, nearly doubling the previous store’s size while reimagining features and elements to incorporate the location as a creative hub for the community. The design drew from the local landscape and ecosystem, including a facade surrounded by 10 magnolia trees sourced from the Pacific Northwest. The store’s exterior is framed by a living wall spanning more than 12 metres and featuring 144 species of locally sourced plants. Designed to stay lush throughout the year, the living wall promotes bee and insect habitats and naturally absorbs heat and traffic noise. Our new store in London, Apple Brompton Road, features a unique curved ceiling and 12 towering Sicilian ficus trees. Both spaces, like all Apple facilities, source 100 per cent renewable electricity. Each Apple building needs to coexist with its environment while meeting our standards for human-centric design. We work hard to strike this balance and harness the creativity and innovation these challenges demand. 100 In 2022, we opened Apple Brompton Road, which sources 100 per cent renewable electricity, like all Apple facilities. 100 Apple buildings worldwide are LEED or BREEAM certified for environmental performance as of 2022. * * * Introduction Climate Change Resources **Smarter Chemistry** Engagement and Advocacy Appendix 2023 Environmental Progress Report56 ## Protecting those who make, use and recycle ## our products by using safer materials # Smarter Chemistry * * * Goals and progress GOAL Avoid exposure to chemicals that could be harmful to human health or the environment. We performed toxicological assessments on over 1,300 materials in 2022 to proactively evaluate and eliminate potentially harmful substances from our products. Integrate smarter chemistry innovation into the way we design and build our products. Apple led the IPC task group that helped develop and publish a new IPC industry standard on the use of safer cleaners in 2022. Drive comprehensive reporting of chemicals used in our supply chain to make our products. We’ve included over 47,000 materials in our comprehensive material library. * * * Our approach We carefully consider the chemicals we use in our products and manufacturing processes. These choices directly impact the safety, recyclability and reuse of our products, which are key to truly circular supply chains. Smarter chemistry is our approach to identifying chemicals that best serve all our priorities, including safety, performance and environmental impact. This supports our circular supply chain efforts by minimising the recirculation of potentially harmful substances. Our efforts to remove potentially harmful chemicals from our products help create safer and healthier workplaces for our employees and suppliers, and safe products for people and the environment. We’ve taken the important initial step of accounting for the materials we use, both in our products and in the processes to create them. This information helps us better protect the people who design, make, use and recycle our devices. It also informs our efforts to Our approach to limiting potential chemical exposure in product manufacturing leverages the hierarchy of controls. The hierarchy of controls is a concept used to control hazard exposure and consists of five actions in order of preference: elimination, substitution, engineering controls, administrative controls and personal protective equipment (PPE). Elimination and substitution are the most preferred forms of control. When no alternative is available to eliminate or substitute potential exposure, we rely on engineering and administrative controls to safeguard against it. As we focus on this for our manufacturing processes, we push our industry to do the same. protect the environment. We’re working side by side with leading members of the scientific community, NGOs and industry organisations to move forward, and we continue to push for the development and broad adoption of safer alternatives. Our approach involves proactively promoting the use of smarter materials and chemicals. This involves establishing safety requirements that often exceed local industry standards and empowering our suppliers to meet our guidelines. We also help suppliers source materials that are safer alternatives, which provide the necessary level of performance and are also better for people and the environment. We have created standards and programmes to support these efforts, including the rigorous requirements defined in our Regulated Substances Specification (RSS) and the deep supply chain engagement through our Full Material Disclosure (FMD) and Chemical Safety Disclosure (CSD) programmes. We also share what we’ve learned in creating these systems with others in the industry — and we push for change that can transform product manufacturing. Advocacy and leadership are needed to make this happen, and we’re committed to providing both — pushing to broaden the use of safer and more sustainable materials based on smarter chemistry, and working with our suppliers and material manufacturers to create alternatives that can help move our industry forward. Our smarter chemistry strategy Mapping and engagement Engage our supply chain partners to comprehensively identify the chemicals in the materials used to make our products and the processes used to make them, allowing us to drive change that goes beyond what’s required for regulatory compliance. Assessment and management Assess the potential human health and environmental risks of chemicals to Assess the potential human health and environmental risks of chemicals to evaluate compliance with our requirements and inform product design. Innovation * * * Mapping and engagement We’re committed to creating products of the highest quality — and that commitment extends to the health and environmental impacts of everything we make. This begins with a clear understanding of the chemistries of the materials that go into our products. Through collaboration, we can build a comprehensive view of the chemicals in the materials we use and drive improvements in how we make our products. Several Apple programmes support these efforts. Our FMD programme maps the materials and their chemistries in our products, while our CSD programme tracks the materials used to manufacture our products. We drive our supply chain partners to collect in-depth information on the chemicals they use, including the purpose for their use, the amount consumed, and how the chemicals are being applied, stored and handled. We also work closely with our partners to review the steps being taken to protect their employees. We have criteria for the performance needs, environmental impact and safety of the materials we use. Our goal is to identify material chemistries that meet these standards. We examine the effects of material chemistries across a product’s life — from design and manufacturing to the customer experience and, ultimately, recycling and recovery. Through early engagement and effective data collection, we’re able to develop a comprehensive view of each material, and its chemistry, in support of our health and environmental goals. We’re leading in these efforts. With our partners, we’re engaged in the work required to understand the chemical composition of the materials in our products, as well as the chemicals and materials used during manufacturing. Close collaboration with our partners allows us to account for the materials used across our supply chain. This information informs our decisions when it comes to health and environmental risks. The way that we effectively collaborate with our partners can help others in our industry take their own steps towards eliminating potentially harmful chemicals in their products and manufacturing processes. This progress across our industry supports our effort to build responsible circular economies at scale. Our goal is to identify material chemistries that meet these Good data is fundamental to delivering safer products. We rely on detailed and comprehensive information to inform our decision-making on material chemistries. The FMD programme, launched six years ago, is integral to this process. It aims to catalogue and map each chemical in the materials used in our products. Material manufacturers are at the centre of these efforts. They provide thorough reporting on material compositions from deep within our supply chain — proprietary data that’s shared through our innovative and secure data collection system. This system enables us to make informed choices about the materials that are used. For iPhone, iPad and Mac products released in 2022, we collected detailed chemical information on 91 per cent of each product by mass, on average. For the Apple Studio Display, we collected information on more than 93 per cent of the product by mass. Smarter chemistry matters at every stage in the product life cycle * * * Comprehensive chemical mapping Understanding chemical ingredients leads to better materials for Apple products. Apple works with material manufacturers to understand the chemistries of the materials to enable evaluation. Mapping chemicals throughout product development leads to the use of safer materials in the manufacturing process. CSD data informs and prioritises supplier engagement, encouraging rigorous chemical management practices and adoption of safer alternatives. Apple customers benefit from using products made with safer materials and chemicals. The FMD and CSD programmes help support the creation of best-in-class products in a responsible manner for our customers. Creating an inventory of chemicals used in manufacturing We prioritise the health and safety of the people in our supply chain. The Apple Supplier Code of Conduct and Supplier Responsibility Standards outline our requirements for our suppliers in the areas of health and safety, labour and human rights, environment, ethics and management systems. We also account for how chemicals are selected and managed within our supply chain — and the impact this can have on people working in our supply chain. The comprehensive materials library helps inform decisions across our product life cycles. It drives better material selections by our supply chain partners through the RSS, and it provides a foundation for assessing the materials that we specify, how our products are manufactured and, eventually, how they’ll be recycled. We’re using innovative approaches to this process, including machine learning to digitise data from chemical tests so this information can be more easily assessed. And we’re finding ways to share this information by supporting the development of industry standards that will help encourage the exchange of data on materials. These efforts support our goals of improving the safety of our products and the wider electronics industry and beyond. Detailed and accurate information drives this process, including which chemicals our suppliers use as they make our products and how they store, handle and consume each one. Through the CSD programme, suppliers are required to provide this data as part of a rigorous disclosure process. With a detailed chemical inventory from our suppliers, we can support our supply chain partners in identifying risks and opportunities to implement safer alternatives. * * * We evaluate materials for substances restricted in our Regulated Substances Specification — including VOCs — using equipment like this gas chromatography/mass spectrometry (GC/MS) system. Working with suppliers to meet global requirements We support supplier engagement with these programmes — and the RSS — through ongoing training. This continued engagement is central to our partnership and to our shared efforts to promote smarter chemistry in our products and processes. Since 2020, our suppliers in China worked under the new regulations governing the use of materials containing volatile organic compounds (VOCs). And we went even further to support compliance by assessing and qualifying over 3,500 low-VOC materials for use, helping our suppliers transition to these alternatives. In 2022, we continued to provide additional support for suppliers through training sessions on the new regulations, which were attended by more than 800 participants. By deploying a VOC specification worldwide, we’re also helping drive adoption of low-VOC alternatives around the world. And we’re working with our suppliers to identify and develop materials that meet the current and upcoming complex per- and polyfluoroalkyl substances (PFAS) regulatory requirements. 47,000 validated materials are stored in our comprehensive materials library. 93% These programmes, along with the RSS, allow us to engage with suppliers through ongoing training. This fosters our partnerships and shared efforts to promote smarter chemistry in our products and processes. * * * Assessment and management We base key decisions on our product designs, manufacturing processes, and approaches to recycling and reuse on the data we collect on chemicals and materials. This information enables us to establish requirements for our suppliers, including those set in our Regulated Substances Specification and our Restricted Chemicals for Prolonged Skin Contact Materials specification. Our requirements provide clear restrictions on potentially harmful materials and chemicals, including those that are restricted. Through our assessment system, we work so that only materials that meet our stringent requirements are used in Apple products. The data we gather on chemicals and our rigorous assessments allow us to make informed decisions on chemical management for the safety of those who use, make and recycle our products. These decisions also help make the materials recovered from our products at end of life safer for reuse in new products, enabling circular supply chains. Setting and maintaining rigorous chemical safety requirements Over 20 years ago, we first published the Regulated Substances Specification, setting requirements for the use of chemicals or materials in our products, accessories, manufacturing processes and packaging. The specification builds on our history of advancements in material safety — and it reflects our dedication to the collection of necessary data to uphold these requirements. We continue to evolve the RSS with new chemicals and restrictions based on the latest scientific research and standards, drawing from regulations, international standards and voluntary requirements. Many of the specification’s restrictions exceed the most stringent local regulatory requirements in order to protect human health and the environment. The specification designates restricted substances and requires reporting on additional substances. We’ve updated and expanded chemical restrictions that, in many instances, surpass current regulatory restrictions. Most recently, we’ve added perfluorohexanesulfonic acid (PFHxA) — which is a subset of the larger group of PFAS — phenol, isopropylated, phosphate (3:1) (PIP 3:1), and several skin-sensitising substances well ahead of regulatory restrictions. Our Green Chemistry Advisory Board provides feedback on key initiatives, including potential updates to the RSS. The advisory board is an independent group of leading researchers and academics. Their diverse experience and perspectives help us lead the way to protect our customers and those who make or recycle our products. We remain focused on materials that will be in prolonged skin contact. We apply rigorous controls defined in our Restricted Chemicals for Prolonged Skin Contact Materials list. The restrictions focus on substances that are potential skin sensitisers to minimise the potential for reactions commonly reported across wearable products, like jewellery. These restrictions are derived from leading standards, recommendations from toxicologists and dermatologists, international laws and directives, and Apple policies. We mandate that our suppliers analyse each material that comes into prolonged contact with skin according to Apple’s requirements, and we review compliance with these requirements. Our specifications are incorporated into contractual obligations for our suppliers, and each one helps us maintain our stringent requirements. * * * We’ve proactively provided our suppliers with a list of cleaners and degreasers that are safe to use, and since 2018, all our final assembly sites have used only safer alternative cleaners and degreasers. Verifying and developing in the Environmental Testing Lab the safety of the use of a substance in a particular product. In 2022, we continued to expand the scope of biocompatibility testing beyond individual materials to include modules and whole products. Through this work, we have an even more comprehensive view of each material and the impact that assembly has on safety. We perform toxicological analysis of the materials in our products to help guide our material safety guidelines. The information we share through material specifications benefits our suppliers and those we collaborate with in the industry. We now proactively provide our suppliers with a list of cleaners and degreasers that are safer to use. In 2022, we approved 58 safer cleaners for use in our supply chain, bringing the total number of safer cleaners we’ve approved over the past three years to 133. Each of these cleaners has gone through a rigorous independent assessment against a comprehensive set of criteria. We’re making an immediate impact in our efforts to protect human health and the environment through our approach to the application of cleaners and degreasers. These substances account for some of the highestuse materials at final assembly sites. Regulators and environmental health and safety organisations have focused considerable attention on the chemistries of cleaners and degreasers. We’re investing in the due diligence required to identify preferred alternatives for use by suppliers and others in the industry. Our efforts have had a direct impact on health and safety — and they have the potential to change how our industry operates. We’re promoting the use of safer alternatives for process chemicals in our supply chain by making it easier for suppliers to select preferred substitutions from the start. All our final assembly sites have used only safer alternative cleaners and degreasers, as defined by Apple, since 2018. We’ve since expanded this work to the component manufacturers who create modules used in final assembly, helping them identify and implement opportunities to use safer alternatives in their operations. In 2020 and 2021, we received the EPA Safer Choice Partner of the Year Award for our work to scale the use of safer process chemicals and protect those working in our supply chain. * * * Innovation We’re continually developing our knowledge of material properties to improve the chemical safety, performance and environmental impact of materials. These three factors drive our assessments of substances and help us pursue innovations that align with our values. The foundation of these innovations is our work in mapping, assessing and managing the chemicals used in our products and supply chain. We also look at how these materials are used in a product life cycle, from design and manufacturing to end of life. With this knowledge, we can seek out and support the development of safer chemistries that have an impact, and we can contribute to continually improving the overall safety of our products and processes. Innovating the designs and processes used to make our products By focusing on materials early in product development, we create opportunities to innovate improvements throughout the process of creating a product. We assess materials for performance, safety and environmental impact. These represent our holistic approach to smarter chemistry, allowing us to design for our customers’ needs while creating products that exceed expectations and are safer for use, reuse and recycling. To achieve these goals, we focus on the process of material selection. This involves choosing the substances incorporated into our product designs and those that our suppliers use to manufacture our products. Our comprehensive chemical profiles of each material provide the basis for each decision. The FMD programme documents material information — like composition — for review by our experts so that a substance’s suitability meets our standards before it enters our supply chain. This includes toxicological assessments of each chemical within a material, focusing on those that come into prolonged contact with skin. Each design choice determines the materials included in our product and the chemicals required to make them. Through the CSD programme, we look at the conditions in which a material is used so that we can make recommendations that reflect the existing controls around a substance. And we work proactively with our suppliers so that their employees are protected through proper storage, handling and material application controls. Our work considers the impact of materials when our products reach their end of life. We take steps to prevent potential releases into the environment during the recycling process and to protect those involved in recycling our products. This involves monitoring chemistries that may be harmless in small quantities but become more concentrated through recycling processes. And it also entails assessing how potentially harmful substances impact the recyclability of a material to avoid downcycling — use of the material in lowerquality applications — or substances that could make the material unsafe for any use. We also pursue innovation projects that lead to better products. In 2019, we launched a pilot programme at a manufacturing location in China as part of our anodising improvement programme with the aim of reducing, and eventually eliminating, potentially hazardous discharge, as well as reducing water and chemical use. As part of the pilot, we employed several water efficiency approaches, including using cascade and counterflow rinsing processes, which helped retain 75 to 85 per cent of the water used during metal finishing. This process improvement has the potential to save millions of gallons of freshwater annually when applied at scale. Creating new, safer chemistries to move the industry forward Our strict requirements that govern potentially harmful substances in our products and processes encourage the suppliers we work with to also prioritise safer materials, helping create a market for better alternatives. We’re lending our expertise on safer chemistries to help our suppliers meet the growing demand for safer materials. Prioritising these materials also means phasing out chemistries that don’t meet our specifications. We’ve approached this across our company and products while investing in safer alternatives to drive change across our industry. The use of safer cleaners today supports the circular supply chains of the future. The material and process innovations we develop result from all these efforts. Our work to share information across our supply chain, perform detailed process and chemical assessments, and partner with suppliers on chemical management lays the foundation for improvements. We’re able to better protect those who make and use our products and enable the reuse of key materials. And by keeping harmful chemicals out of our supply chain at the outset, we make it possible for us and others to recover materials for the next generation of products. * * * Using our research and analysis of materials, we’ve collaborated with suppliers to find safer alternatives — including for substances where none currently exist. In those cases, we lend our technical capabilities in material science to work with suppliers to develop entirely new chemistries. We maintain the same high safety, performance and environmental standards for new alternative materials, submitting them through rigorous testing and evaluation to avoid regrettable substitutions. This work isn’t new to Apple; we’ve been leading in the identification and successful removal of potentially harmful substances since the late 1990s. This process has involved the rigorous assessment of chemicals and the removal of those that don’t align with our goals — in some cases, before removal becomes a requirement and industry standard. We’re committed to phasing out our use of PFAS and engaging with all our supply chain partners to restrict PFAS from our products and manufacturing processes. While our analysis indicates that PFAS used in our products are safe during product We’ve replaced these with safer thermoplastic elastomers. Both are still used by other companies in power leads and headphone cables. Brominated flame retardants (BFRs) In 2008, we eliminated BFRs from thousands of In 2008, we eliminated BFRs from thousands of parts, such as enclosures, cables, circuit boards and connectors. We use safer metal hydroxides and phosphorus compounds in their place. We eliminated mercury from displays in 2009. We use energyefficient, mercury-free LEDs and OLEDs instead of mercury-based fluorescent lamps in all our displays. Mercury use, we felt it was important to broaden our scope to consider manufacturing along the supply chain. We’re prioritising our phaseout activities in applications that result in the highest volumes of PFAS reductions and the most meaningful environmental impact. We’re pursuing our phaseout in three steps: compiling a comprehensive catalogue of PFAS uses in our products, identifying and developing non-PFAS alternatives that can meet our performance needs, and confirming that non-PFAS alternatives align with our human health and environmental goals. Apple phased lead out of display glass and solder in 2006. Substances that we keep out of our products\* Arsenic Arsenic, traditionally used in glass, has been eliminated from Apple display glass since 2008. Eliminated from all new product designs, beryllium is found in copper alloys used to make connectors and springs. We eliminated PFOA and PFOS from our products, with RSS restrictions added in 2010 and 2013, respectively. These types of chemicals are commonly used in manufacturing water-resistant materials. We’re committed to eliminating PFAS entirely from our products. PFAS (PFOA and PFOS) - Apple’s Regulated Substances Specification describes Apple’s restrictions on the use of certain chemical substances in materials in Apple products, accessories, manufacturing processes, and packaging used for shipping products to Apple’s end customers. Restrictions are derived from international laws or directives, regulatory agencies, ecolabel requirements, environmental standards and Apple policies. Apple products are free of PVC and phthalates with the exception of AC power leads in India, Thailand (for two-pin AC power leads) and Republic of Korea, where we continue to seek government approval for our PVC and phthalates replacement. Apple products comply with the European Union Directive 2011/65/EU and its amendments, including exemptions for the use of lead. Apple is working to phase out the use of these exempted substances where technically possible. * * * Advocating for safer alternatives across our industry Our work around smarter chemistry helps facilitate the transition to safer alternatives that are accessible to others in our industry. The criteria we set for chemicals — and how our suppliers use them — help establish even more stringent standards around health and safety across the electronics industry. We collaborate with standardsetting bodies, trade associations and NGOs to achieve this — developing tools, standards and mechanisms to drive the identification and adoption of smarter chemicals throughout our supply chain. We’ve focused on cleaners and degreasers — building out a safer cleaners innovation ecosystem through multiple efforts. In 2022, we continued our role as a founding signatory of the Toward Zero Exposure programme from the Clean Electronics Production Network (CEPN). Led by the NGO Green America, CEPN is a multistakeholder initiative to accelerate companies’ efforts to eliminate workers’ exposure to hazardous chemicals and to raise awareness of the need to improve chemical management practices across the global electronics manufacturing industry. As a signatory, we report on the progress we’ve made to remove nine process chemicals from our supply chain that have been collectively identified as priorities for replacement at our final assembly sites. We’re also accountable for our efforts to protect workers from exposure to potentially harmful substances. We prioritise this work by emphasising effective engineering solutions and administrative controls across manufacturing processes. While personal protective equipment is essential and foundational to protecting people, we focus on employing safer alternatives from the start, and we support that with PPE as a measure to eliminate exposure to potentially harmful chemicals. In 2022, we continued our collaboration with IPC, the premier global electronics standard-setting body, by drafting and helping launch IPC-1402, Standard for Green Cleaners Used in Electronics Manufacturing. This standard resulted from work over the past two years with the Green Cleaners for Electronics Manufacturing task group, where Apple has served as a chair working with more than 20 industry partners. This new standard will help suppliers across the electronics industry select cleaners that are safer for employees and the environment. Last year, Apple received the IPC Stan Plzak Corporate Recognition Award for our work on this effort and our contributions to the industry. We continued to partner with ChemFORWARD — a non-profit organisation committed to creating broad access to chemical hazard data and a registry of cleaners — to make it easier for suppliers to choose safer alternatives. We also supported the Responsible Business Alliance in producing a comprehensive technical guide on responsible chemical management, as well as over 20 hours of related training content to educate millions of workers across thousands of companies about controlling occupational exposures to hazardous chemicals. * * * Introduction Climate Change Resources Smarter Chemistry **Engagement and Advocacy** Appendix 2023 Environmental Progress Report67 # Engagement and Advocacy ## We hear our stakeholders ## loud and clear * * * Our approach Apple is committed to achieving clear impact across our environmental goals — and beyond our footprint as a company. This is urgent work that we can’t do without others. As a member of the global community, we see it as part of our responsibility to engage thoughtfully with those addressing environmental challenges — from those in the policy community to the direct stakeholders involved in issues day-to-day and driving change. Listening to voices from a range of backgrounds and experiences This means working with our partners, learning from their feedback and providing support where we can make a difference. We aim to effect positive change within and beyond our operations and supply chain. And we respond to the world around us by looking for opportunities where our leadership can impact policies, industries and communities in a transformative way. We approach our conversations with others through curiosity and with the intention of learning from diverse communities devoted to environmental stewardship. We purposefully engage those who bring a range of perspectives and understanding of the issues that matter to us. The conversations we have with policy makers, non-profit organisations and community leaders help shape how we see regulations, approaches and the promise of emerging technologies. We learn from this engagement too. This process helps us discover opportunities to navigate challenges and improve our efforts to achieve our environmental goals. Ultimately, we’re able to put these conversations into action — whether that means aligning with new standards and best practices or exploring the potential that cutting-edge research can have on our operations. We can better achieve a Transformative impact within our industry and for global communities when we work alongside a diverse group of stakeholders We engage with the scientific community to better understand emerging approaches and cutting-edge tools that can support our environmental goals. We’re working with researchers at Carnegie Mellon University in Pennsylvania to create robotic recycling systems to enhance material recovery for Apple and others through the development of advanced mechanisms for product makers, non-profit organisations and community leaders disassembly and material sorting. We also continue to engage our Green Chemistry Advisory Board, an independent group of toxicologists and experts who advise on our smarter chemistry initiatives, including potential updates to the RSS. Their diverse expertise and perspectives help us lead the way to protect our customers and those who make and recycle our products. whether that means aligning with new standards and best * * * Engaging with others has also helped us refine our approach to industry standards and best practices. We draw from cross-sector engagement platforms to help guide our programmes and set standards for environmental efforts. The Alliance for Water Stewardship (AWS) is one example of this. Their expertise defines the world-class water stewardship practices we’ve implemented at key Apple and supplier facilities, earning AWS certification for adherence to their Standard. We’re motivated by what we hear from within the business community, including our customers, employees, suppliers, industry partners and investors. Their input provides vital support for our environmental goals and pushes us further in our efforts. For example, as co-chair of the United States Information Technology Office (USITO) — a trade association representing the US information and communications technology industry in China — we lead the environmental protection and energy efficiency working groups. In this role, we engage with other companies in China as we work to comply with new environmental regulations and with policy makers on future standards. We continually look for more opportunities to hear from others — at the industry and national levels — to receive feedback and make progress. Achieving change together An important part of leadership is the responsibility to influence change — whether through policy advocacy or direct engagement with groups invested in issues. Collective action provides the best means to achieve results on pressing environmental issues. When we take a proactive role in sharing our experiences and contributing to collaborative efforts on our areas of focus and expertise, we can better realise the goals on climate, resources and smarter chemistry that we share with other stakeholders. Policy advocacy Policy is instrumental in effecting change across For example, in the US in 2022, we filed comments with the Federal Energy Regulatory Commission (FERC) to encourage more rapid integration of renewable energy to the transmission grid, a key bottleneck to renewable energy deployment. And Apple, joined by other companies, submitted an Amicus Brief, urging the Supreme Court to uphold the US EPA’s authority to regulate greenhouse gases from power stations. Policy advocacy Policy is instrumental in effecting change across industries. Apple supports climate and environmental policy through our actions and stakeholder engagement. This also involves actively advocating for policies that advance environmental objectives — and support the Paris Agreement — by evaluating the positions of our industry partners to align business goals to address climate change. In Asia, we spoke at a carbon neutrality conference calling for Korea’s 2030 energy plan to increase the ambition of its target for renewable energy solutions. And we serve as an executive member of the Japan Climate Leaders’ Partnership (JCLP), a business coalition focused on renewables and pushing for greater climate ambition in Japan. Partnership and collaboration with the government is essential to this. JCLP has called for an increased focus on the renewable energy transition in alignment with the Paris Agreement’s 1.5° C target and the level of carbon pricing needed to incentivise emissions reduction. Read more about how we advocate for climate policy around the world on page 29. We’re also partnered with the Platform for Accelerating the Circular Economy (PACE), a global group of public and private decision makers focused on the circular economy — and how to push forward the vision and best practices needed to scale advancements. Building community around these efforts is essential to achieving our environmental goals. Through its engagement at key global events, PACE provides a vital platform to pursue solutions across governments, the private sector and civil society. Read more about our position on circular economy policy on page 47. Industry engagement We engage in dozens of industry initiatives so we can We engage in dozens of industry initiatives so we can support beyond our own operations. These allow us to share knowledge and discover additional pathways to advocate for change. Through partnerships and coalitions, we contribute to various industries by sharing Japan. Partnership and collaboration with the government proprietary tools and standards and pursuing policy objectives that drive towards our shared goals. This year, with IPC, a global electronics trade association, we developed and released IPC-1402, a new standard for chemical cleaners intended to support safer, greener practices among manufacturers. Engagement with trade and industry associations helps to achieve alignment with environmental and climate policy in our collaborative efforts. We’re deepening our engagement on climate policy with our US federal trade associations. As part of this process, we’re evaluating relevant trade association positions on climate and identifying specific areas of misalignment with Apple’s values and principles on climate change. We then work with our trade associations to reduce areas of misalignment. * * * Collaborative impact Collective action matters when it comes to taking on Collective action matters when it comes to taking on environmental challenges. We make public commitments alongside our partners to make our support clear and signal the change we are working to create. We’re transparent about the progress we make against these commitments, so that we and our partners can be accountable for results. The work we do with others yields tangible results across our environmental goals — and it provides a catalyst for others to take action. An example of this is our commitment to 100 per cent renewable electricity with members in markets across the globe through RE100, an energy initiative aiming to scale zero-carbon grids by uniting the world’s most influential businesses committed to transitioning their electricity use to entirely renewables. We’re also part of the First Movers Coalition, a global initiative harnessing the purchasing power of companies to decarbonise seven “hard to abate” industrial sectors that currently account for 30 per cent of global emissions according to WEF. Through this initiative, we’ve committed to moving to sustainable aviation fuel for 5 per cent of our passenger air travel footprint; to procuring at least 10 per cent of annual primary aluminium at or above First Movers Coalition’s definition of “nearzero emissions primary aluminium”; and to ensuring at least 50 per cent of all aluminium procured annually is sourced from secondary aluminium by 2030. We’re also supporting investments in forestry and carbon removal through external initiatives like the Forest Investor Club and our own Restore Fund (see page 27), which help us back projects that offer a financial return while contributing to our environmental goals. Through Race to Zero and America is All In, we’re tracking our shared commitment to support the Paris Agreement and efforts to achieve robust near-term emissions targets. As a founding member of the Asia Clean Energy Coalition — launched in 2022 at COP27 — we support accelerated corporate renewable electricity procurement in Asia, as part of a just and equitable energy transition in the region. We remain committed to addressing issues beyond climate change, including chemical safety and reducing the amount of plastics in our products. As part of the Toward Zero Exposure programme with the Clean Electronics Production Network (CEPN), we’re working to address health and safety challenges in the electronics supply chain with other stakeholders. We share our pledge to eliminate plastics from our packaging by 2025 with the Ellen MacArthur Foundation. Key Partnerships and Memberships | Stakeholder | Our engagement | | --- | --- | | Aluminium Stewardship Initiative | Supporting responsible sourcing within the aluminium value chain; recently completed an audit against their Performance Standard of environmental, social and governance criteria. (Member) | | Ceres | Dedicated to taking action to stabilise the climate, protect water and natural resources, and build a just and inclusive economy. (Member of the Ceres company network) | | ChemFORWARD | Working to advance safer chemistry in product design and manufacturing. (Co-design partner, chair of Technical Advisory Group) | | China Association of Circular Economy(CACE) | Sharing our best practices in their conferences and workshops and partnering with the organisation on advocacy efforts focused on recycling and waste. (Senior member) | | Clean Electronics Production Network(CEPN) | Working to improve chemical safety in the electronics supply chain as part of this multi-stakeholder initiative. (Member of the design team) | | Clean Energy Buyers Alliance(CEBA) | Promoting customer-driven clean energy use. (Member, serving on the Supply Chain and International Collaboration working group) | | Japan Climate Leaders' Partnership | Aligning business objectives with climate goals. (Executive member) | | MIT Climate and Sustainability Consortium(MCSC) | Galvanising the business community to have an impact on broad and intersecting environmental challenges. (Industry Advisory Board Member) | | Platform for Accelerating the Circular Economy(PACE) | Joining global leaders in the effort to transition to a circular economy. (Member of the board) | | RE100 | Showing our commitment to 100% renewable energy. (Member of the RE100 Advisory Committee) | | Responsible Business Alliance(RBA) | Dedicated to responsible business conduct in global supply chains. (Full member, serving on the RBA Board of Directors and steering committee of the Responsible Minerals Initiative) | | World Business Council for Sustainable Development(WBCSD) | A community of the world's leading sustainable businesses working towards a net-zero, nature-positive and more equitable future. (Member) | * * * The Conservation Fund works to centre local organisations, like McIntosh S.E.E.D., to support land retention among Black landowners in the rural US South. In 2022, Black landowners from Georgia participated in workshops and training sessions hosted by McIntosh S.E.E.D. on topics relevant to climate resiliency. Supporting communities around the world In 2022, we supported efforts that span a breadth of work. The Conservation Fund is actively engaging and supporting land retention among Black landowners in the rural US South. Working to support and centre local organisations like McIntosh S.E.E.D., this collaboration helps landowners become more resilient to climate change through workshops and training sessions on topics like sustainable forestry. World Wildlife Fund is engaged at the community level in developing alternative livelihood and other climate resilience projects through their Climate Crowd programme. Beyond Benign works to increase BIPOC representation in smarter chemistry by providing students and teachers in minority-serving institutions with training, resources, networks and curriculum support. Frank Water works with communities in India by using technology to map local watersheds and monitor the health of water ecosystems. The China Green Carbon Foundation is working on innovative approaches to carbon sequestration, including developing and restoring semi-urban forests and strengthening management practices. And Conservation International founded the Finance Lab for Irrecoverable Carbon to create business models and new approaches for incentivising the protection and repair of ecosystems essential to meeting global climate goals. We value the opportunity to work with partners to contribute beyond our direct corporate operations — outside our areas of expertise and sometimes in new spaces. This is where some of the most vital work is being done to support transformational change for communities. Our work combines both collaborative work and philanthropic contributions, which we determine based on each organisation’s focus and their potential to effect change. And we recognise the importance of community-driven leadership on many issues by providing support. * * * We continue to collaborate with environmental justice groups by providing grants to minority-led and minoritycentred organisations that focus on environmental issues. These organisations play a significant and vital role within their communities. They also support our efforts to avoid negative impacts for under-represented communities as we pursue our environmental goals. We’re able to provide both financial support and assistance in amplifying the work and impact these groups have in and beyond their communities. And we work with these groups to address the global effects of climate change and environmental hazards that traditionally impact overburdened communities. We expanded our Strengthen Local Communities grant programme — which provides funding to local organisations in the communities where Apple team members live and work — to communities outside the United States. In 2022, we supported the Environmental Justice Foundation based in the United Kingdom and the Karrkad Kanjdji Trust and Original Power in Australia with grants that focused on access and equity. We also continued to support organisations in the US, including The Green Door Initiative, the Michigan Environmental Justice Coalition, the Environmental Leadership Program, Native Conservancy and UPROSE. We’re seeing progress too. Hispanic Access Foundation works to support diverse Latino voices in their communities to advocate for environmental issues that directly affect their daily lives. Through our partnership, the organisation was able to double the number of interns it employs while paying a competitive market wage, and jump-start the Latino Climate Council, a new network of young, talented Latino leaders who are diversifying the field and bringing frontline perspectives to the climate justice movement. And representatives from the Center for Rural Enterprise and Environmental Justice travelled to Japan to learn about the country’s approach to renewable energy. They also met with local representatives and partners to better understand Japanese perspectives around equity, inclusion and justice in connection with the environment. Apple supports the Hispanic Access Foundation, which focuses on amplifying diverse Latino voices in their communities and advocating for environmental issues that directly affect their daily lives. * * * Feature Advancing our commitment to equity with the Impact Accelerator We’re working so that environmental progress and equity go hand in hand. And through the Impact Accelerator, we aim to expand access to opportunity through our investments in environmental sectors — such as renewable energy, carbon removal, recycling innovation and smarter chemistry — which also help fight systemic barriers that impact communities disproportionately affected by environmental issues. As the Impact Accelerator enters its third year, we’re deepening our commitment to this initiative. The Apple Impact Accelerator is designed for Black-, Hispanic/Latinx- and Indigenous-owned businesses that share our focus on innovation and our commitment to the environment. With customised training and access to Apple experts, our Impact Accelerator helps companies as they achieve their next stage of development. As part of Apple’s Racial Equity and Justice Initiative, the Impact Accelerator supports businesses that drive innovation and positive outcomes in our supply chain — so that together, we can work to support communities disproportionately impacted by environmental issues. In 2022, our second class of the Impact Accelerator included 16 businesses at the leading edge of environmental services and solutions. Each company selected is at least 51 per cent owned, operated and controlled by a Black, Hispanic/Latinx or Indigenous individual and aligns closely with our environmental strategy, including our commitment to become carbon neutral by 2030. Many of them share a focus on bringing clean energy, opportunity and vital services to vulnerable and underserved communities. The companies participate in a three-month programme aimed at accelerating progress towards their goals. The programme includes live virtual sessions, online courses on supply chain management, supplier diversity, financial and legal subjects, and one-to-one mentorship with an Apple expert on topics from renewable energy to responsible sourcing. Executives and their teams receive customised training that provides the knowledge and tools that organisations need to succeed as Apple suppliers, as well as access to Apple mentors and experts to help align their business priorities with Apple’s environmental goals. The programme culminates in an opportunity for participants to pitch their services and solutions to decision makers and business leaders within Apple. The companies sustain their commitment after the programme. Each participant transitions to Apple’s Supplier Success community to further foster the connections developed during the programme — and to forge new connections across all generations of the programme. Every business is given the opportunity to attend a business executive leadership programme focused on supply chain and growth through a leading university. Our most recent class featured a diverse set of companies engaged in work on water stewardship, recycling technologies, and green building and engineering, among other areas. The programme supports these companies as they better position themselves for growth, improve their abilities to engage larger contracts, and expand their customer base — all while supporting their commitment to the environment. The programme has also connected like-minded business leaders, both within our Impact Accelerator classes and at Apple, to create new opportunities for innovation and to realise our shared goals. * * * Introduction Climate Change Resources Smarter Chemistry Engagement and Advocacy **Appendix** 2023 Environmental Progress Report74 # Appendix ## focusing on the finer details of our progress * * * Appendix contents 76 Appendix A: Environmental data 77 Greenhouse gas emissions 78 Carbon offsets 79 Carbon footprint by product 81 Apple’s life cycle assessment methodology 82 Energy 83 Resources 84 Normalizing factors 85 Appendix B: Corporate facilities energy supplement 94 Appendix C: Supplier Clean Energy Program supplement 99 Appendix D: Assurance and review statements 100 Net comprehensive carbon footprint, facilities energy, carbon, waste, paper, and water data (Apex) 102 Product carbon footprint (Fraunhofer Institute) 104 Supplier Clean Energy Program (Apex) 105 Supplier Energy Efficiency Program (Apex) 106 Packaging fiber and plastic footprint (Fraunhofer Institute) 108 Appendix E: Environment, Health and Safety Policy 110 Appendix F: ISO 14001 certification 112 Report notes 113 End notes * * * Appendix A Environmental Environmental data 77 Greenhouse gas emissions 78 Carbon offsets 78 Carbon offsets 79 Carbon footprint by product 81 Apple’s life cycle assessment methodology 81 Apple’s life cycle assessment methodology 82 Energy 82 Energy 83 Resources 83 Resources 84 Normalizing factors 84 Normalizing factors * * * Appendix A Greenhouse gas emissions Greenhouse gas emissions We account for our carbon footprint by following internationally recognized standards, like the World Resources Institute (WRI) Greenhouse Gas (GHG) Protocol and ISO 14040/14044.1 Improving the accuracy of our carbon footprint is an ongoing process — as we learn more, we refine our carbon models and adjust our climate roadmap. We also regularly revisit the boundary of our carbon footprint as our data sources improve and our business evolves. For example, in 2022, we expanded our corporate footprint to include work from home emissions, third-party cloud services, electricity transmission and distribution losses, and upstream impacts from our scope 1 fuel use. | | | Fiscal year | | | | | | --- | --- | --- | --- | --- | --- | --- | | 2022 | 2021 | 2020 | 2019 | 2018 | | | | Corporate emissions (metric tons CO2e)1 | Gross emissions | 324,100 | 166,380 | 334,430 | 573,730 | 586,170 | | Scope 1 | 55,200 | 55,200 | 47,430 | 52,730 | 57,440 | | | Natural gas, diesel, propane | 39,700 | 40,070 | 39,340 | 40,910 | 42,840 | | | Fleet vehicles | 12,600 | 12,090 | 4,270 | 6,950 | 11,110 | | | Other emissions2 | 2,900 | 3,040 | 3,830 | 4,870 | 3,490 | | | Scope 2 (market-based)3 | 3,000 | 2,780 | 0 | 0 | 8,730 | | | Electricity | 0 | 0 | 0 | 0 | 8,730 | | | Steam, heating, and cooling4 | 3,000 | 2,780 | 0 | 0 | 0 | | | Scope 3 | 265,800 | 108,400 | 287,000 | 521,000 | 520,000 | | | Business travel | 113,500 | 22,850 | 153,000 | 326,000 | 337,000 | | | Employee commute5 | 134,200 | 85,570 | 134,000 | 195,000 | 183,000 | | | Upstream fuel | 10,600 | 0 | 0 | 0 | 0 | | | Work from home (market-based) | 7,500 | 0 | 0 | 0 | 0 | | | Transmission and distribution loss (market-based) | 0 | N/A | N/A | N/A | N/A | | | Third-party cloud (market-based) | 0 | 0 | 0 | 0 | 0 | | | Carbon removals | | | | | | | | | Corporate carbon offsets7 | -324,100 | -167,0008 | -70,0009 | 0 | 0 | | Product life cycle emissions (metric tons CO2e)10 | Gross emissions (Scope 3) | 20,280,000 | 23,020,000 | 22,260,000 | 24,460,000 | 24,550,000 | | Manufacturing (purchased goods and services) | 13,400,000 | 16,200,000 | 16,100,000 | 18,900,000 | 18,500,000 | | | Product transportation (upstream and downstream) | 1,900,000 | 1,750,000 | 1,800,000 | 1,400,000 | 1,300,000 | | | Product use (use of sold products) | 4,900,000 | 4,990,000 | 4,300,000 | 4,100,000 | 4,700,000 | | | End-of-life processing | 80,000 | 80,000 | 60,000 | 60,000 | 50,000 | | | Carbon removals | | | | | | | | | Product carbon offsets | 0 | -500,00011 | 0 | 0 | 0 | | Total gross scope 3 emissions (corporate and product)(metric tons CO2e) | | 20,550,000 | 23,128,400 | 22,547,000 | 24,980,000 | 25,070,000 | | Total gross carbon footprint (without offsets)(metric tons CO2e)12 | | 20,600,000 | 23,200,000 | 22,600,000 | 25,100,000 | 25,200,000 | | Total net carbon footprint (after applying offsets)(metric tons CO2e)13 | | 20,300,000 | 22,530,000 | 22,530,000 | 25,100,000 | 25,200,000 | • For data on years prior to 2018, please reference past Environmental Progress Reports. Notes: • Totals might not add up due to rounding. 1 Apple’s carbon footprint boundary is aligned with the Greenhouse Gas (GHG) Protocol framework and includes emissions that are material and relevant to Apple, where data is available. Apple’s carbon footprint includes direct scope 1 emissions; indirect scope 2 emissions from purchased electricity, steam, heating, and cooling; and indirect scope 3 emissions from purchased goods and services, transportation and distribution, business travel, employee commute, product use, and end of life. 2 Apple is carbon neutral for corporate emissions as of April 2020. • Totals might not add up due to rounding. 1 Apple’s carbon footprint boundary is aligned with the Greenhouse Gas from the purchase of district heating, chilled water, and steam. 6 Beginning in fiscal year 2020, we updated our methodology for calculating emissions from employee commute to reflect employees working from home during COVID-19. 7 For a detailed breakdown of carbon offset purchases applied 4 We estimate the life cycle emissions associated with our use of renewable electricity for our corporate facilities to be about 60,000 metric tons CO2e. We do not currently account for thesedata. emissions in our carbon footprint, due to the poor quality of this 5 Beginning in fiscal year 2021, we’re accounting for scope 2 emissions emissions in our carbon footprint, due to the poor quality of this 5 Beginning in fiscal year 2021, we’re accounting for scope 2 emissions from the purchase of district heating, chilled water, and steam. 6 Beginning in fiscal year 2020, we updated our methodology for end of life. 2 Apple is carbon neutral for corporate emissions as of April 2020. Beginning in fiscal year 2022, we’ve expanded our footprint boundary to include scope 3 emissions associated with work from home, thirdparty cloud services, electricity transmission and distribution losses, and upstream impacts from scope 1 fuels. 3 Emissions from R&D processes and refrigerant leaks. 3 Emissions from R&D processes and refrigerant leaks. 4 We estimate the life cycle emissions associated with our use 7 For a detailed breakdown of carbon offset purchases applied to our corporate footprint, see the carbon offsets table on the following page. 8 We retired 167,000 metric tons of carbon credits from the Chyulu 8 We retired 167,000 metric tons of carbon credits from the Chyulu Hills project in Kenya to maintain carbon neutrality for our corporate emissions in fiscal year 2021. This project is certified to the VCS and CCB standards. 9 We retired 70,000 metrics tons of carbon credits — 53,000 from the 10 Because we’re committed to accuracy and transparency, we regularly refine our product life cycle assessment model and sources of data. For example, last year we obtained more granular data summarizing in which countries our products are sold and used, resulting in more granularity possible for grid emission factors used in the carbon footprint of the product use phase. The net result was an increase in our fiscal year 2021 carbon footprint. When using the same level of data granularity and model as fiscal year 2021, our product use carbon emissions in fiscal year 2021 would have been about 2.5 percent lower. 11 For fiscal year 2021, we retired credits from the Chyulu Hills project in 11 For fiscal year 2021, we retired credits from the Chyulu Hills project in Kenya and purchased carbon credits from two additional projects to offset a total of 500,000 metric tons of direct emissions across our value chain. The first project, a REDD+ coastal conservation project in Guatemala, protects and conserves forests from deforestation and degradation. The second project aims to establish forests on about 46,000 hectares of barren land that isn’t otherwise in use across seven counties in the Guizhou province of China. Both projects are certified to the same high standards that we require for projects in the Restore Fund, including VCS and CCB standards. 12 Due to rounding, our gross and net carbon footprints do not always 12 Due to rounding, our gross and net carbon footprints do not always equal the sum of the subtotals disclosed above. * * * Appendix A Carbon offsets Carbon offsets We retired the following carbon offsets toward our corporate emissions footprint for 2022. | Project name | Project description | Vintage | Volume retired | Registry link | | --- | --- | --- | --- | --- | | Alto Mayo | The Alto Mayo Protected Forest(AMPF) covers approximately 182,000 hectares of land in the Peruvian Amazon of extremely high value for biodiversity conservation and watershed protection.The threats to the area have increased in the last decade with the development of regional infrastructure projects and the rising price of coffee-the main crop grown in this area-leading to increasing deforestation and the subsequent loss of ecosystem services that this area provides.In responseConservation International and its allies in the region designed the Alto Mayo Conservation Initiative(AMCI) to promote the sustainable management of the AMPF and its ecosystem services for the benefit of the local populations and the global climate.With the financial support of carbon financing,these actions are facilitating the conservation of large expanses of forest with associated climate change mitigation benefits while also creating opportunities for the sustainable development of local communities. | 2016-2018 | 9,100 | registry.verra.org/app/projectDetail/VCS/944 | | Chyulu Hills | The Chyulu Hills REDD+ Project(CHRP)是a multi-partner initiative designed to promote climate change mitigation and adaptation,restore biodiversity,and create alternative livelihoods under the UN scheme of Reducing Emissions from Deforestation and forest Degradation(REDD+).It's located in the Tsavo-Amboseli ecosystem in southeastern Kenya and stretches over an area of over 410,000 hectares.Its main geographic feature is the volcanic Chyulu Hills mountain range,from which the project derives its name.This project presents a broad ecosystem approach,including REDD+,to provide long-term sustainable financing and management to maintain the ecological integrity of an iconic African landscape.The project will help protect a very high-value wildlife and biodiversity area while supporting the development needs of Indigenous and other local communities. | 2017 | 315,000 | registry.verra.org/app/projectDetail/VCS/1408 | * * * Appendix A Carbon footprint by product Carbon footprint by product The following tables list the carbon footprints (in kilograms) of Apple products sold as of March 9, 2022, along with select configurations.\* Storage configurations | | Storage configurations | | | | | | | --- | --- | --- | --- | --- | --- | --- | | iPhone | Unit | 64GB | 128GB | 256GB | 512GB | 1TB | | iPhone 14 | kg | - | 61 | 67 | 83 | - | | iPhone 14 Plus | kg | - | 68 | 75 | 91 | - | | iPhone 14 Pro | kg | - | 65 | 71 | 84 | 116 | | iPhone 14 Pro Max | kg | - | 73 | 80 | 93 | 124 | | iPhone 13 mini | kg | - | 61 | 69 | 81 | - | | iPhone 13 | kg | - | 64 | 71 | 83 | - | | iPhone 12 | kg | 70 | 75 | 85 | - | - | | iPhone SE(3rd generation) | kg | 46 | 50 | 58 | - | - | | | Storage configurations | | | | | | | iPad | Unit | 64GB | 128GB | 256GB | 512GB | 1TB2TB | | iPad Pro 12.9-inch(Wi-Fi+Cellular) | kg | - | 135 | 142 | 156 | 183284 | | iPad Pro 11-inch(4th generation)(Wi-Fi+Cellular) | kg | - | 107 | 121 | 121 | 148249 | | iPad Air(5th generation)(Wi-Fi+Cellular) | kg | 80 | 84 | 92 | - | - | | iPad(10th generation)(Wi-Fi+Cellular) | kg | 72 | 82 | - | - | - | | iPad(9th generation)(Wi-Fi+Cellular) | kg | 75 | - | 84 | - | - | | iPad mini(6th generation)(Wi-Fi+Cellular) | kg | 68 | 71 | 77 | 90 | - | | Apple Watch | Unit | Aluminum case with Sport Loop | Aluminum case with Sport Band | Stainless steel case with Sport Band | Titanium case with Ocean Band | Titanium case with Trail Loop | | --- | --- | --- | --- | --- | --- | --- | | Apple Watch Ultra,49mm | kg | - | - | - | 56 | 56 | | Apple Watch Series 8,45mm | kg | - | 33 | 35 | - | - | | Apple Watch SE(2nd generation),44mm | kg | 28 | 31 | - | - | - | • Dashes indicate that the configuration does not exist. \* - Product carbon footprint data for Apple products are published in our Product Environmental Reports and are accurate as of product launch. In instances where carbon models were developed prior to product launch, we leverage preproduction units. * * * | | | Storage configurations | | | | | --- | --- | --- | --- | --- | --- | | Notebooks | Unit | 256GB | 512GB | 1TB | | | 16-inch MacBook Pro(2023),Apple M2 Pro chip with 12-core CPU and 19-core GPU | kg | - | 300 | 327 | | | 16-inch MacBook Pro(2023),Apple M2 Max chip with 12-core CPU and 38-core GPU | kg | - | - | 356 | | | 14-inch MacBook Pro(2023),Apple M2 Pro chip with 10-core CPU and 16-core GPU | kg | - | 243 | - | | | 14-inch MacBook Pro(2023),Apple M2 Pro chip with 12-core CPU and 19-core GPU | kg | - | - | 272 | | | 14-inch MacBook Pro(2023),Apple M2 Max chip with 12-core CPU and 30-core GPU | kg | - | - | 301 | | | 13-inch MacBook Pro(2022),Apple M2 chip | kg | 167 | 182 | - | | | 13-inch MacBook Air(2022),Apple M2 chip | kg | 147 | 171 | - | | | 13-inch MacBook Air(2020),Apple M1 chip | kg | 161 | 181 | - | | | | | Storage configurations | | | | | Desktops | Unit | 256GB | 512GB | 1TB | 4TB | | 24-inch iMac with 4.5K Retina display,Apple M1 chip with 8-core CPU and 7-core GPU | kg | 481 | - | - | - | | 24-inch iMac with 4.5K Retina display,Apple M1 chip with 8-core CPU and 8-core GPU | kg | 486 | 511 | - | - | | Mac mini(2023),Apple M2 chip | kg | 112 | 126 | - | - | | Mac mini(2023),Apple M2 Pro chip | kg | - | 150 | - | | | Mac Studio(2022),Apple M1 Max with 32GB memory | kg | - | 262 | - | - | | Mac Studio(2022),Apple M1 Ultra with 64GB memory | kg | - | - | 375 | - | | Mac Pro(2019),3.5GHz(8-core) processor,Radeon Pro 580X,32GB memory | kg | 2,765 | - | - | - | | Mac Pro(2019),2.5GHz(28-core) processor,dual Radeon Pro Vega II Duo with Infinity Fabric Link,1.5TB memory,Afterburner card | kg | - | - | - | 6,994 | | Displays | Unit | | | | | --- | --- | --- | --- | --- | | Studio Display(2022) | kg | 544 | | | | Pro Display XDR with Pro Stand | kg | 974 | | | | HomePod | Unit | | | | | HomePod(2nd generation) | kg | 92 | | | | HomePod mini | kg | 42 | | | | Apple TV | Unit | Storage configurations | | | | 64GB | 128GB | | | | | Apple TV 4K,Wi-Fi | kg | 43 | - | | | Apple TV 4K,Wi-Fi+Ethernet | kg | - | 46 | | | iPod touch | Unit | Storage configurations | | | | 32GB | 128GB | 256GB | | | | iPod touch(7th generation) | kg | 32 | 38 | 48 | * * * Appendix A Apple’s life cycle assessment methodology Apple’s life cycle assessment methodology When conducting a product life cycle assessment (LCA), we calculate carbon emissions using the 100-year time horizon global warming potentials (GWP100) from the 2014 IPCC Fifth Assessment Report (AR5),\* including biogenic carbon. The following details the five steps we use to conduct our LCA: 1. To model the manufacturing phase, we use part-bypart measurements of the entire product along with data on part production. In some cases where part-bypart data is not readily available, we also use designlevel data for size and weight detail. The measurements help us accurately determine the size and weight of the components and materials in the product, while data on manufacturing processes and yield loss during production allows us to account for the impact of manufacturing. The LCA includes accessories and packaging, as well as decreased emissions through Apple’s Supplier Clean Energy Program. When calculating Apple’s comprehensive carbon footprint, we also include units that are repaired and replaced through AppleCare. 2. To model customer use, we measure the power consumed by a product while it is running in a simulated scenario. Daily usage patterns are specific to each product and are a mixture of actual and modeled customer use data. For the purposes of our assessment, years of use, which are based on first owners, are modeled to be four years for macOS and tvOS devices and three years for iOS, iPadOS, and watchOS devices. Most Apple products last longer and are often passed along, resold, or returned to Apple by the first owner for others to use. More information on our product energy use is provided in our Product Environmental Reports. 3. To model customer use, we measure the power consumed by a product while it is running in a simulated scenario. Daily usage patterns are specific to each product and are a mixture of actual and modeled customer use data. For the purposes of our assessment, years of use, which are based on first owners, are modeled to be four years for macOS and tvOS devices and three years for iOS, iPadOS, and watchOS devices. Most Apple products last longer and are often passed along, resold, or returned to Apple by the first owner for others to use. More information on our product energy use is provided in our Product 4. To model transportation, we use data collected on shipments of single products and multipack units by land, sea, and air. We account for transporting materials between manufacturing sites; transporting products from manufacturing sites to regional distribution hubs; transporting products from regional distribution hubs to individual customers; and transporting products from final customers to recycling facilities. There is inherent uncertainty in modeling carbon emissions due primarily to data limitations. For the top component contributors to Apple’s carbon emissions, Apple addresses this uncertainty by developing detailed process-based environmental models with Applespecific parameters. For the remaining elements of Apple’s carbon footprint, we rely on industry average data and assumptions. 5. After we collect data about manufacturing, use, transportation, and end of life, we combine it with detailed greenhouse gas emission data. This emission data is based on a combination of Apple-specific and industry-average data sets for material production, manufacturing processes, electricity generation, and transportation. Renewable energy used in the supply chain, initiated by suppliers independently or through the Apple Supplier Clean Energy Program, is also accounted for within the LCA model. Combining product-specific information with emission data in our LCA allows us to compile detailed results for greenhouse gas emissions as they relate to each product. The data and modeling approaches are checked for quality and accuracy by the Fraunhofer Institute in Germany. 6. After we collect data about manufacturing, use, transportation, and end of life, we combine it with detailed greenhouse gas emission data. This emission data is based on a combination of Apple-specific and industry-average data sets for material production, manufacturing processes, electricity generation, and transportation. Renewable energy used in the supply chain, initiated by suppliers independently or through the Apple Supplier Clean Energy Program, is also accounted for within the LCA model. Combining product-specific information with emission data in our LCA allows us to compile detailed results for greenhouse gas emissions as they relate to each product. The data and modeling approaches are checked for quality and accuracy by the Fraunhofer * * * Appendix A Energy Fiscal year | | | Fiscal year | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | Unit | 2022 | 2021 | 2020 | 2019 | 2018 | | | | Corporate facilities energy | Electricity | | | | | | | | Total | MWh | 3,199,000 | 2,854,000 | 2,580,000 | 2,427,000 | 2,182,000 | | | U.S. | MWh | 2,614,000 | 2,377,000 | 2,192,000 | 2,075,000 | 1,830,000 | | | International | MWh | 585,000 | 477,000 | 389,000 | 351,000 | 351,000 | | | Fuel | | | | | | | | | Total | MWh | 334,250 | 467,280 | 439,170 | 462,680 | 494,460 | | | Natural gas | MWh | 188,630 | 203,010 | 202,360 | 202,340 | 204,970 | | | Biogas | MWh | 76,280 | 208,620 | 210,820 | 217,140 | 226,660 | | | Propane liquid | MWh | 1,830 | 40 | 140 | 280 | 280 | | | Gasoline | MWh | 38,790 | 34,880 | 14,910 | 23,950 | 37,740 | | | Diesel (other) | MWh | 15,610 | 9,780 | 9,610 | 16,450 | 20,270 | | | Diesel (mobile combustion) | MWh | 13,120 | 10,950 | 1,330 | 2,520 | 4,540 | | | Other | | | | | | | | | Steam, heating, and cooling¹ | MWh | 19,800 | 22,480 | 0 | 0 | 0 | | | Energy efficiency² | Corporate facilities | | | | | | | | Electricity savings | MWh/year | 317,120 | 260,390 | 244,690 | 208,640 | 113,200 | | | Fuel savings | MMBt/year | 315,870 | 299,780 | 297,090 | 277,120 | 254,140 | | | Supplier facilities³ | | | | | | | | | Electricity savings | MWh/year | 1,620,425,230 | 1,418,825,350 | 1,101,440 | 943,890 | 798,930 | | | Fuel savings | MMBt/year | 2,038,930 | 1,047,440 | 752,680 | 25,120 | 25,120 | | | Renewable electricity | Corporate facilities | | | | | | | | Renewable electricity used | MWh | 3,199,000 | 2,854,000 | 2,580,000 | 2,430,000 | 2,170,000 | | | Renewable electricity percentage⁴ | % of total energy | 100 | 100 | 100 | 100 | 99 | | | Scope 2 emissions avoided | metric tons CO₂e | 1,201,000 | 1,064,000 | 948,000 | 899,000 | 690,000 | | | Supply chain⁵ | | | | | | | | | Renewable electricity capacity (operational) | GW | 13.7 | 10.3 | 4.5 | 2.7 | 1.9 | | | Renewable electricity capacity (committed) | GW | 6.8 | 15.9 | 7.9 | 5.1 | 3.3 | | | Renewable electricity used | MWh | 23,700,000 | 18,100,000 | 11,400,000 | 5,700,000 | 4,100,000 | | 1 Beginning in fiscal year 2021, we’re accounting for the purchase of district heating, chilled water, and steam. 2 Because energy efficiency measures have lasting benefits, energy efficiency savings are calculated cumulatively since 2012. All efficiency measures are retired based on their effective useful lifetime as documented by the California Energy Commission. Due to the COVID-19 pandemic, corporate facilities’ energy use declined temporarily as we adjusted lighting and climate controls due to shutdowns and reduced occupancy. These savings are not included in the total savings from our energy efficiency program initiatives. We also recognize that energy use at our employees’ homes likely increased during this period. We have not accounted for this energy use because we anticipated this impact is small relative to our overall energy use and we’re still evolving our methodology. 3 Energy savings from supplier energy efficiency improvements are 4 Beginning January 1, 2018, 100 percent of the electricity we use to power our global facilities is sourced from renewable energy. 5 Supply chain renewable electricity capacity (operational) and 5 Supply chain renewable electricity capacity (operational) and renewable electricity use for fiscal year 2021 do not include REC purchases Apple made, equivalent to 0.3 GW and 500,000 MWh, respectively, to address a small increase to its carbon footprint. * * * Appendix A Resources Resources | | | Unit | Fiscal year | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 2022 | 2021 | 2020 | 2019 | 2018 | | | | | | Water | Corporate facilities | | | | | | | | | Total | million gallons | 1,527 | 1,407 | 1,287 | 1,291 | 1,258 | | | | Freshwater1 | million gallons | 1,380 | 1,259 | 1,168 | 1,178 | 1,190 | | | | Recycled water2 | million gallons | 142 | 141 | 113 | 106 | 63 | | | | Other alternative sources3 | million gallons | 5 | 7 | 5 | 7 | 4 | | | | Supply chain | | | | | | | | | | Freshwater saved | million gallons | 13,000 | 12,300 | 10,800 | 9,300 | 7,600 | | | | Waste | Corporate facilities4 | | | | | | | | | Landfill diversion rate | % | 71 | 68 | 70 | 66 | 67 | | | | Landfilled(municipal solid waste) | pounds | 33,260,990 | 33,202,200 | 25,826,550 | 38,317,120 | 32,372,890 | | | | Recycled | pounds | 78,618,250 | 73,489,220 | 63,812,300 | 72,338,130 | 66,380,630 | | | | Composted | pounds | 8,726,170 | 4,844,960 | 6,302,410 | 10,482,120 | 10,397,430 | | | | Hazardous waste | pounds | 2,780,610 | 3,525,840 | 4,053,770 | 6,096,600 | 6,277,800 | | | | Waste to energy | pounds | 1,197,570 | 657,890 | 786,250 | 1,129,080 | 1,105,140 | | | | Supply chain | | | | | | | | | | Waste diverted from landfill | metric tons | 523,000 | 491,000 | 400,000 | 322,000 | 375,000 | | | | Product packaging footprint | Packaging | | | | | | | | | Total | metric tons | 276,100 | 257,000 | 226,000 | 189,000 | 187,000 | | | | Recycled fiber | % of total | 66 | 63 | 60 | 59 | 58 | | | | Responsibly sourced virgin fiber5 | % of total | 30 | 33 | 35 | 33 | 32 | | | | Plastic | % of total | 4 | 4 | 6 | 8 | 10 | | | 1 We define freshwater as drinking-water quality. The majority of our freshwater comes from municipal sources, and less than 5 percent comes from onsite groundwater sources. 3 Other alternative sources of water include rainwater and recovered condensate captured onsite. Water used for construction activities like dust control is not included in this total and represents 13 million gallons of water used in fiscal year 2021. 4 Total does not include construction and demolition waste or electronic 2 Recycled water represents a key alternative water source. Our recycled water is sourced primarily from municipal treatment plants, with less than 5 percent coming from onsite treatment. Recycled water is primarily used for irrigation, makeup water in cooling, and toilet flushing. 3 Other alternative sources of water include rainwater and recovered 4 Total does not include construction and demolition waste or electronic waste. We’re refining our methodology for collecting this data and plan to include it in future years. We‘ve also restated the total for 2018 without these categories of waste. 5 Responsible sourcing of wood fiber is defined in Apple’s Sustainable 5 Responsible sourcing of wood fiber is defined in Apple’s Sustainable Fiber Specification. Since 2017, all the virgin wood fiber used in our packaging has come from responsible sources. * * * Appendix A Normalizing factors Normalizing factors | | Fiscal year | | | | | | --- | --- | --- | --- | --- | --- | | | 2022 | 2021 | 2020 | 2019 | 2018 | | Net sales(in millions,US$) | 394,328 | 365,817 | 274,515 | 260,174 | 265,595 | | Number of full-time equivalent employees | 164,000 | 154,000 | 147,000 | 137,000 | 132,000 | - As reported in Apple’s Form 10-K Annual Report filed with the SEC. * * * Introduction Climate Change Resources Smarter Chemistry Engagement and Advocacy **Appendix** 2023 Environmental Progress Report85 ## Appendix B # Corporate facilities energy supplement * * * Appendix B Corporate facilities energy supplement Corporate facilities energy supplement Use of renewable energy at our facilities has been a central component of our emissions reduction strategy since 2011. We’ve learned a lot about how best to secure renewable energy, which has helped us educate suppliers and expand our renewable energy efforts into our supply chain. This appendix summarizes the types of renewable energy solutions we’ve deployed, and it details how we implement renewable energy at our data centers — our largest energy loads. How we procure renewable energy Since launching our renewable energy program in 2011, we’ve implemented a number of solutions to procure renewable energy. Our strategy has evolved over time to create the most positive impact. Ownership and PURPA In 2011, Apple’s 100 percent equity ownership of our Maiden solar arrays was the first time a nonenergy commercial company built its own utility-scale solar PV project. We used a 1978 federal law called the Public Utility Regulatory Policies Act (PURPA) to structure the project. We then applied this same structure to two more large solar PV and biogas fuel cell projects in North Carolina and two microhydro projects in Oregon. This was a landmark moment in corporate renewable energy development and led to an increased use of PURPA in these states. Since 2012, in California and Oregon, we’ve used a program called Direct Access to bypass the default electricity generation offered by the utilities servicing our data centers in those states. Instead, we contracted directly with independent power producers who could supply 100 percent renewable electricity. After initially buying from existing, third-party-owned projects, we’re now procuring renewable energy from projects we created: The Solar Star II and Montague Wind projects deliver renewables to our Oregon data center, and the California Flats solar project delivers renewables to our data centers, offices, and retail stores in California. Direct Access GreenEnergy Rider In 2013, we opened a new data center in Reno, Nevada. In 2013, we opened a new data center in Reno, Nevada. With no PURPA or Direct Access options in Nevada, we worked directly with the local utility, NV Energy, to create a whole new regulatory structure. The Nevada GreenEnergy Rider enables us to secure a long-term, fixed-price contract for renewable electricity from a new solar PV project built for us but managed by the utility. We’ve used this partnership to create four solar projects totaling 320 megawatts. Equity investment In 2014, we invested in two 20-megawatt solar PV In 2014, we invested in two 20-megawatt solar PV projects in Sichuan, China, to support all our in-country retail stores, corporate offices, and data storage facilities. This project represented the first time a commercial company created a new large-scale project in China for its own use. We’ve since replicated this model many times for Apple’s supply chain. Portfolio solutions In 2015 and 2016, we adapted to land scarcity constraints in Singapore and Japan by contracting for solar PV on 800 rooftops in Singapore and 300 in Japan. We adapted our approach in each country to fit local partnerships and regulatory structures: We signed a long-term agreement similar to a power purchase agreement in Singapore and made an equity investment in Japan. These projects offer us long-term flexibility as our load grows. Since 2017, we’ve been powering Apple Park with 100 percent renewable energy — about 75 percent of which is generated onsite and managed by a microgrid. The onsite generation comes from 14 megawatts of rooftop solar PV and 4 megawatts of baseload biogas fuel cells. Any additional energy required is drawn by Direct Access from the California Flats solar project in nearby Monterey County. The microgrid system with battery storage manages the renewable energy generation and the building’s energy use; optimizes demand management, load shifting, and frequency regulation services; and ensures uninterrupted energy reliability against local grid outages. * * * Facilities renewable energy projects To reach 100 percent renewable electricity for Apple’s own facilities, Apple has helped create 1,549 MW of renewable energy around the world. The projects listed to the right represent Apple-created renewable energy projects that support Apple facilities’ electricity use and contribute to cleaner grids around the world. Operational projects apply a mix of clean energy technology, including wind (22.9 percent), solar (76.0 percent), microhydro (0.21 percent), and biogas fuel cells (0.9 percent). This table represents all operational renewable energy projects that Apple has helped create. | Location | Renewable energy technology | Size(MW) | | --- | --- | --- | | PV | 0.5 | | | Brazil | Wind | 0.5 | | China mainland | PV | 130 | | Colombia | PV | 0.2 | | Denmark | PV | 42 | | Denmark | Wind | 17 | | France | PV | <0.1 | | India | PV | 2 | | Israel | PV | 5 | | Japan | PV | 12 | | Mexico | Wind | 0.8 | | Philippines | PV | 0.1 | | Singapore | PV | 35 | | South Africa | PV | 0.2 | | Taiwan | PV | 1 | | Turkey | PV | 4 | | Arizona,U.S. | PV | 55 | | California,U.S. | Biogas fuel cell | 4 | | California,U.S. | PV | 146 | | Illinois,U.S. | Wind | 112 | | North Carolina,U.S. | Biogas fuel cell | 10 | | North Carolina,U.S. | PV | 164 | | Nevada,U.S. | PV | 320 | | Oregon,U.S. | Microhydro | 3 | | Oregon,U.S. | PV | 125 | | Oregon,U.S. | Wind | 200 | | Texas,U.S. | PV | 1 | | Texas,U.S. | Wind | 25 | | Virginia,U.S. | PV | 133.6 | | | Total | 1,549 | Note: Data current as of February 2023 (operational). * * * Fiscal year 2022 energy and carbon footprint (corporate facilities) The table below provides a detailed breakdown of 2021 energy use, which we used to calculate our greenhouse gas emissions. | Location | Scope 1 | | | | --- | --- | --- | --- | | Total gas(MMBtu) | Renewable biogas(MMBtu) | Scope 1 emissions(metric tons CO2e) | | | Corporate | 826,063 | 202,978 | 31,030 | | Cupertino, CA | 672,244 | 202,978 | 22,849 | | Elk Grove, CA | 13,782 | - | 732 | | Austin, TX | 20,948 | - | 1,113 | | Other U.S. | 67,362 | - | 3,585 | | Cork, Ireland | 20,151 | - | 1,070 | | Singapore | 142 | - | 8 | | China | 686 | - | 37 | | Other international | 30,748 | - | 1,636 | | Data centers | 19,109 | 17,961 | 62 | | Maiden, NC | 17,961 | 17,961 | 1 | | Mesa, AZ | 312 | - | 17 | | Newark, CA | - | - | - | | Prineville, OR | 836 | 0 | 44 | | Reno, NV | - | - | - | | Viborg, Denmark | N/A | N/A | N/A | | Colocation facilities(U.S.) | N/A | N/A | N/A | | Colocation facilities(international) | N/A | N/A | N/A | | China | N/A | N/A | N/A | | Retail stores | 58,720 | 0 | 3,119 | | Domestic(U.S.) | 36,005 | - | 1,912 | | International | 22,716 | - | 1,207 | | Total | 903,892 | 220,939 | 34,211 | Scope 2 Dash indicates unavailable data. | Electricity(million kWh) | Renewable electricity(million kWh) | Scope2 emissions(market-based,metric tonsCO2e)^{1}$ | | --- | --- | --- | | 856 | 856 | 0 | | 428 | 428 | 0 | | 13 | 13 | 0 | | 64 | 64 | 0 | | 57 | 57 | 0 | | 16 | 16 | 0 | | 15 | 15 | 0 | | 33 | 33 | 0 | | 230 | 230 | 0 | | 2,138 | 2,138 | 0 | | 432 | 432 | 0 | | 379 | 379 | 0 | | 20 | 20 | 0 | | 275 | 275 | 0 | | 419 | 419 | 0 | | 27 | 27 | 0 | | 371 | 371 | 0 | | 117 | 117 | 0 | | 98 | 98 | 0 | | 205 | 205 | 0 | | 97 | 97 | 0 | | 108 | 108 | 0 | | 3,199 | 3,199 | 0 | N/A = Gas use at colocation facilities is considered outside of Apple’s operational control. 1 Scope 2 market-based emissions from purchased electricity is zero. But, we also account for purchased steam, heating, and cooling, which resulted in 3,020 metric tons of emissions in fiscal year 2022. * * * A focus on data centers We used over 2.14 billion kWh of electricity in 2022 to power our data centers and colocation facilities around the world. We’re proud that 100 percent of that electricity came from clean, renewable sources including solar, wind, biogas fuel cells, and low-impact hydropower. To cover our needs, we build our own renewable power projects and work with utilities to purchase clean energy from locally obtained resources. We’re staying at 100 percent even as Apple’s data center presence continues to grow. We now operate eight data centers, and more are being developed. These data centers are spread across North America, Europe, and Asia. Each has unique design features that conserve energy and reflect the climate, as well as other aspects, of its location. Maiden, North Carolina 100 percent renewable since opening June 2010 Between 2011 and 2015, we installed 68 megawatts of Apple-created projects: two 20-megawatt solar projects, an 18-megawatt solar project, and 10 megawatts of biogas fuel cells. We then worked with the local utility, Duke Energy, to help build five solar projects through its Green Source Rider program. These solar projects came online beginning in 2015 and were Duke Energy’s first Green Source Rider projects to become operational. We worked with Duke Energy for several years to develop this green energy tariff option, which allowed Apple and Duke Energy to develop new renewable energy projects. The five Green Source Rider projects have a combined capacity of 22 megawatts. In 2017, we made long-term commitments to five more solar projects in North Carolina, for an additional 85 megawatts of clean energy. In 2022, the Maiden data center was supported by projects that generated 432 million kWh of renewable energy, which is equivalent to the energy used by over 11,000 homes in North Carolina for a year. Use of renewable energy 2 allowed us to avoid over 171,000 metric tons of CO e during the fiscal year.3 capacity of 22 megawatts. In 2017, we made long-term commitments to five more solar projects in North Carolina, for an additional 85 megawatts of clean energy. In 2022, the Maiden data center was supported by projects that generated 432 million kWh of renewable energy, which is equivalent to the energy used by over 11,000 homes in North Carolina for a year. Use of renewable energy allowed us to avoid over 171,000 metric tons of CO e 2 The energy efficiency measures we’ve implemented at our Maiden data centers include use of outside air cooling through a waterside economizer during night and coolweather hours, which, along with water storage, allows the chillers to be idle 75 percent of the time. Maiden, North Carolina: Grid mix versus Apple-sourced renewable energy Electricity use in 2022: 432 million kWh | Default grid mix (North Carolina) | % | | --- | --- | | Coal | 16 | | Gas | 37 | | Nuclear | 33 | | Hydro | 5 | | Renewable | 10 | | Other | <1 | Source: eGRID 2021. 2 Carbon emissions equivalences calculated using 2021 data from the U.S. Energy Information Administration: [www.eia.gov/electricity/](http://www.eia.gov/electricity/) sales\_revenue\_price/pdf/table5\_a.pdf. 3 Emissions avoided are calculated using the GHG Protocol methodology for calculating market-based emissions. | Apple actual renewable energy allocation | % | | --- | --- | | Apple's solar projects | 75 | | Apple's biogas fuel cells | 3 | | Apple's wind projects | 21 | Source: 2022 energy data. Note: Totals don’t add up to 100 percent, due to rounding. * * * Prineville, Oregon 100 percent renewable since opening May 2012 100 percent renewable since opening May 2012 To support our Prineville data center, we signed a 200-megawatt power purchase agreement for a new Oregon wind farm, the Montague Wind Power Facility, which entered commercial operation at the end of 2019. It’s our largest project to date, producing over 562 million kWh of clean, renewable energy a year. This is in addition to our power purchase agreement for the 56-megawatt Solar Star Oregon II project located just a few miles from our data center. This solar PV project, which came online and began supporting the data center in 2017, produces 141 million kWh of renewable energy per year. To strengthen the connection between Apple and these projects, we use Oregon’s Direct Access program to supply the renewable energy from these projects directly to our data center. | Default grid mix (Oregon) | % | | --- | --- | | Gas | 35 | | Hydro | 45 | | Renewable | 20 | Also supporting the data center are two microhydro projects that harness the power of water flowing through local irrigation canals that have been operating for over 60 years. In 2022, these microhydro projects are expected to generate nearly 2 million kWh of renewable energy. To supplement these projects, we executed a long-term purchase agreement for all environmental attributes from a 69-megawatt portfolio of eight solar projects in Oregon. Source: eGRID 2021. Prineville, Oregon: Grid mix versus Apple-sourced renewable energy Electricity use in 2022: 275 million kWh In 2022, the Prineville data center was supported by projects that generated 275 million kWh of renewable energy, which is equivalent to the energy used by over 8,000 homes in Oregon for a year. Use of renewable 4 energy allowed us to avoid over 196,000 metric tons of CO2e during the fiscal year.5 Our Prineville data center takes advantage of the cool and dry climate by cooling its servers with outside air whenever possible. Indirect evaporative cooling is enabled when the outside air temperature gets too high to cool the servers with outside air alone. | Apple actual renewable energy allocation | % | | --- | --- | | Apple's microhydro projects | 1 | | Apple's solar projects | 51 | | Apple's wind projects | 48 | Source: 2022 energy data. Reno, Nevada 100 percent renewable since opening 100 percent renewable since opening December 2012 Unlike competitive energy markets where some of our data centers are located, the regulated electricity supply in Nevada did not offer a simple solution for us to create new renewable energy projects dedicated to our data center. So, in 2013, we created a partnership with the local utility, NV Energy, to develop the Fort Churchill Solar project. Apple designed, financed, and constructed the project, and NV Energy operates it and directs all the renewable energy it produces to our data center. The Fort Churchill Solar project uses a photovoltaic panel with curved mirrors that concentrate sunlight. The 20-megawatt array has an annual production capacity of over 40 million kWh. To facilitate further renewable development in Nevada, Apple worked with NV Energy and the Nevada utility commission to create a green energy option open to all commercial customers, called the NV GreenEnergy Rider, that does not require the customer to fund project development up front. Thanks to this new option, in 2015 we announced our second Nevada solar project, the 50-megawatt Boulder Solar II project. This project came online in 2017, producing about 137 million kWh of renewable energy per year. We’ve used the NV GreenEnergy Rider program two more times, first for the 200-megawatt Techren II solar project. Apple’s largest solar project to date, it’s estimated to produce over 540 million kWh per year and came online in late 2019. 4 Carbon emissions equivalences calculated using 2021 data from the U.S. Energy Information Administration: [www.eia.gov/electricity/](http://www.eia.gov/electricity/) sales\_revenue\_price/pdf/table5\_a.pdf. 5 Emissions avoided are calculated using the GHG Protocol 5 Emissions avoided are calculated using the GHG Protocol methodology for calculating market-based emissions. Next was the 50-megawatt Turquoise Nevada project, which came online in late 2020. The project is estimated to produce 110 million kWh of renewable energy per year. In 2022, the Reno data center was supported by projects that generated 419 million kWh of renewable energy, which is equivalent to the energy used by nearly 12,000 homes in Nevada for a year. Use of renewable energy 6 allowed us to avoid more than 145,000 metric tons of CO2e during the fiscal year.7 6 Carbon emissions equivalences calculated using 2021 data from the U.S. Energy Information Administration: [www.eia.gov/electricity/](http://www.eia.gov/electricity/) sales\_revenue\_price/pdf/table5\_a.pdf. Like in Prineville, our Reno data center takes advantage of the mild climate by cooling its servers with outside air whenever possible. When the outside air is too warm to cool the servers alone, it draws from indirect evaporative cooling. 7 Emissions avoided are calculated using the GHG Protocol methodology for calculating market-based emissions. Reno, Nevada: Grid mix versus Apple-sourced renewable energy Electricity use in 2022: 419 million kWh | Default grid mix(Nevada) | % | | --- | --- | | Coal | 7 | | Gas | 63 | | Hydro | 5 | | Renewable | 26 | | Apple actual renewable energy allocation | % | | --- | --- | | Apple's solar projects through the NV GreenEnergy Rider program | 100 | Source: 2022 energy data. * * * Newark, California 100 percent renewable since January 2013 100 percent renewable since January 2013 Our data center in Newark, California, is powered by 100 percent renewable energy. We hit this milestone in January 2013, when we began serving the data center with energy sourced primarily from California wind power. We acquired this energy directly from the wholesale market through California’s Direct Access program. In 2017, Apple’s 130-megawatt California Flats solar project in nearby Monterey County came online, and now we use Direct Access to supply power from that project directly to our data center and other Apple facilities in California. In 2022, the Newark data center was supported by projects that generated 20 million kWh of renewable energy, which is equivalent to the energy used by nearly 10,000 homes in California for a year. Use of renewable 8 energy allowed us to avoid more than 804 metric tons of CO2e during the fiscal year.9 Source: eGRID 2021. | Default grid mix(California) | % | | --- | --- | | Coal | <1 | | Gas | 49 | | Nuclear | 8 | | Hydro | 7 | | Renewable | 34 | | Other | <1 | Mesa, Arizona 100 percent renewable since opening March 2017 Newark, California: Grid mix versus Apple-sourced renewable energy Electricity use in 2022: 20 million kWh Our global command data center in Mesa, Arizona, came online in 2016. To support this facility, we partnered with the local utility, the Salt River Project (SRP), to build the 50-megawatt Bonnybrooke solar project, which became operational in December 2016. This project produces over 148 million kWh of clean, renewable energy a year, which roughly matches the energy used by the data center. As the Mesa data center grew, it became apparent that we needed additional sources of renewable energy to maintain our 100 percent renewable electricity goal. In addition, we began working with SRP to develop a customer renewable energy program in 2017, resulting in their Sustainable Energy Offering, which launched in 2019, to provide a diverse mix of commercial electric customers with new renewable energy at an affordable price. Under this program, Apple has executed an agreement with SRP to purchase a portion of the output of their 100 MW Central Line PV facility. The project became operational in April 2022. 8 Carbon emissions equivalences calculated using 2021 data from the U.S. Energy Information Administration: [www.eia.gov/electricity/](http://www.eia.gov/electricity/) sales\_revenue\_price/pdf/table5\_a.pdf. 9 Emissions avoided are calculated using the GHG Protocol methodology for calculating market-based emissions. In 2022, the Mesa data center was supported by 379 million kWh of renewable energy, which is equivalent to the energy used by over 10,000 Arizona homes.11 Use of renewable energy allowed us to avoid more than 158,000 metric tons of CO2e during the fiscal year.12 10 Apple took operational control of the building in October 2015 and converted it to a data center that began servicing customers in March 2 0 1 7. 12 Emissions avoided are calculated using the GHG Protocol methodology for calculating market-based emissions. | Default grid mix(Arizona) | % | | --- | --- | | Coal | 13 | | Gas | 44 | | Nuclear | 29 | | Hydro | 6 | | Renewable | 8 | | Source:eGRID 2021. | | * * * Denmark 100 percent renewable energy from the first day of operations Our data center came online in 2020. The data center’s construction phase was powered with 100 percent wind energy from a local renewable energy retailer in Denmark. Our Northern Jutland PV project achieved commercial operation in late 2019, will meet all the data center’s near-term energy needs, and at 42 megawatts, is one of Denmark’s largest solar power plants. Our second renewable project in Denmark, a 17 MW wind project, also came online in late 2020. We have secured long-term supply contracts with both Danish renewable projects, which will scale up as our data center loads grow. The power system design at the data center is based on a resilient substation that eliminates the need for backup diesel generators. This reduces the carbon footprint of the data center and completely eliminates the need for large diesel fuel storage systems and diesel engine emissions that would impact the local community. | Default grid mix(Denmark) | % | | --- | --- | | Coal | 13 | | Gas | 5 | | Renewable | 76 | | Other | 6 | China 100 percent renewable energy from the first To cover the electricity load at our two data centers in China, we procure 100 percent renewable electricity from a solar project that came online recently in China. As the data centers further expand, we’ll continue to source renewable electricity in-country to support the growth with renewable electricity. 13 Emissions avoided are calculated using the GHG Protocol methodology for calculating market-based emissions. 14 Emissions avoided are calculated using the GHG Protocol methodology for calculating market-based emissions. In 2022, the China data center was supported by 98 million kWh of renewable energy, avoiding more than 60,503 metric tons of CO2e during the fiscal year.14 | Default grid mix(China) | % | | --- | --- | | Coal | 63 | | Gas | 3 | | Renewable | 29 | | Other | 5 | Source: IEA Electricity Information 2022: [www.iea.org/data-and-statistics/](http://www.iea.org/data-and-statistics/) data-product/electricity-information. * * * Our colocation facilities The majority of our online services are provided by our own data centers; however, we also use third-party colocation facilities for additional data center capacity. While we don’t own these shared facilities and use only a portion of their total capacity, we include our portion of their energy use in our renewable energy goals. Starting in January 2018, 100 percent of our power for colocation facilities was matched with renewable energy generated within the same country or regional grid. As our loads grow over time, we’ll continue working with our colocation suppliers to match 100 percent of our energy use with renewables. Third-party computing Beyond the use of our own data centers and colocation facilities, we also use third-party services to support some of our on-demand cloud computing and storage services. As of 2022, all the electricity associated with Apple’s load at our third-party computing vendors is matched with 100 percent clean energy. | | Total energy use(kWh) | Renewable energy(kWh) | Default utility emissions(metric tons CO2e) $ ^{15}$ | Apple's emissions—including renewable energy(metric tons CO2e) $ ^{16}$ | Percent renewable energy(%) $ ^{17}$ | | --- | --- | --- | --- | --- | --- | | FY2011 | 42,500 | 0 | 10 | 10 | 0 | | FY2012 | 38,552,300 | 1,471,680 | 17,200 | 16,500 | 4 | | FY2013 | 79,462,900 | 46,966,900 | 31,800 | 14,500 | 59 | | FY2014 | 108,659,700 | 88,553,400 | 44,300 | 11,000 | 81 | | FY2015 | 142,615,000 | 121,086,100 | 60,500 | 12,700 | 85 | | FY2016$ ^{18}$ | 145,520,900 | 143,083,200 | 66,300 | 1,600 | 98 | | FY2017 | 289,195,800 | 286,378,100 | 125,600 | 1,500 | 99 | | FY2018 | 327,663,800 | 326,959,700 | 146,600 | 400 | 99.8 | | FY2019 | 339,047,649 | 339,047,649 | 146,400 | 0 | 100 | | FY2020 | 372,901,398 | 372,901,398 | 153,459 | 0 | 100 | | FY2021 | 384,727,076 | 384,727,076 | 146,780 | 0 | 100 | | FY2022 | 487,921,930 | 487,921,930 | 182,700 | 0 | 100 | 15 We calculate default utility emissions to provide baseline emissions of what our carbon footprint would have been without the use of renewable energy. This allows us to demonstrate the savings resulting from our renewable energy program. 16 Apple’s greenhouse gas emissions are calculated using the World Resources Institute Greenhouse Gas Protocol methodology for calculating market-based emissions. 17 We calculate our progress toward our 100 percent renewable energy goal on a calendar-year basis, while the numbers reported in this table are based on fiscal year. Beginning January 1, 2018, all the electricity use at our colocation facilities is from 100 percent renewable energy. 18 Over the past few years, we’ve been installing submeters in colocation facilities to better track electricity usage. Beginning in fiscal year 2016, we started reporting this submetered electricity usage. Prior to fiscal year 2016, reported electricity usage was conservatively estimated based on maximum contract capacity quantities. We’ve updated our fiscal year 2016 colocation facilities footprint to more accurately reflect Apple’s operational boundaries. Per the GHG Protocol, we’ve removed from our electricity usage and scope 2 calculations those emissions associated with colocation facility cooling and building operations. * * * Introduction Climate Change Resources Smarter Chemistry Engagement and Advocacy **Appendix** 2023 Environmental Progress Report94 ## Appendix C # Supplier Clean Energy Program supplement * * * Appendix C Supplier Clean Energy Program supplement Supplier Clean Energy Program supplement The Supplier Clean Energy Program is integral to Apple’s goal of reaching carbon neutrality by 2030. We’re focused on working with our suppliers to help them increase energy efficiency at their facilities and transitioning suppliers to clean, renewable electricity. These efforts are helping reduce product-related carbon emissions, create a more resilient supply chain, and contribute to healthier communities — while offering a model for others to follow. We’re proud of the progress our suppliers have made. As of March 2023, over 250 manufacturing partners in 28 countries have committed to 100 percent renewable electricity for Apple production (see below for the suppliers participating). Additionally, Apple itself has directly invested in nearly 500 megawatts of renewable electricity projects to cover a portion of upstream emissions. The Supplier Clean Energy Program now has over 20 gigawatts of clean energy commitments, of which nearly two-thirds are operational. In 2022, the 13.7 gigawatts of renewable energy online in Apple’s supply chain generated 23.7 million megawatt-hours of clean energy, avoiding 17.4 million metric tons of carbon emissions — a 23 percent increase over 2021.1 We help our suppliers select projects with the greatest potential for impact and with a clear carbon, ecological, and social benefit, and we consider the life cycle emissions associated with current and emerging clean energy technologies. In most cases, wind and solar solutions meet our criteria. For some energy solutions, such as biomass and hydroelectric generation, we review individual projects so that they deliver positive impact while minimizing harm. We also uphold stringent assurance standards so that all clean energy can be verified through third-party assessment.2 We want to be a driving force for the development of new projects and help overcome barriers to bring new renewable electricity online. With the rapidly changing policy dynamics in some of our key countries, we continuously evolve our framework both to comply with local laws and regulations and to yield the most positive and meaningful energy transformation. 1 2021 renewable electricity figures associated with Apple’s Supplier Clean Energy Program do not include REC purchases that Apple made to address a small increase to its carbon footprint. When accounting for the REC purchases, the total renewable energy online in Apple’s supply chain was 10.6 gigawatts, generating 18.6 million megawatt-hours and avoiding 14.2 million metric tons of carbon emissions. Supplier energy efficiency and clean energy achievements 10.6 gigawatts, generating 18.6 million megawatt-hours and avoiding 14.2 million metric tons of carbon emissions. 2 Apple’s independent assurance provider for the Supplier Clean Energy Program conducts work against standard procedures and guidelines for external verification of sustainability reports, based on current best practice in independent assurance. The procedures are based on principles and methods described in International Standard on Assurance Engagements (ISAE) 3000 (Revised), Assurance Engagements Other than Audits or Reviews of Historical Financial Information (Effective for assurance reports dated on or after December 15, 2015), issued by the International Auditing and Assurance Standards Board, and ISO 14064-3:2019, Greenhouse gases — Part 3: Specification with guidance for the verification and validation of greenhouse gas statements. * * * Supplier renewable electricity solutions The following charts include breakdowns of the contracting mechanisms and technologies that suppliers have identified to help meet their commitments. Supplier renewable energy procurement mechanisms (FY2022) Apple’s suppliers are implementing clean energy solutions using a variety of contracting mechanisms — with renewable power purchases representing the majority of solutions implemented to date, at 66 percent. We work with our suppliers to select projects with the greatest potential for impact and with a clear carbon, ecological, and social benefit. “Other technology” includes clean energy sources such as some forms of biomass, geothermal, and small-scale, low-impact hydro. Note: Above total doesn’t add up to 100 percent due to rounding. * * * Supplier commitments As we continue transitioning our supply chain to clean energy, over 250 suppliers globally — including over 40 new commitments in the past year — have committed to producing Apple products with 100 percent clean electricity: 3M AAC Acoustic Technologies Advanced International Multitech AKM Meadville Electronics Alpha and Omega Semiconductor Limited Alps Alpine Amagasaki Seikan Amkor Technology Incorporated\* Amphenol ams OSRAM\* Anshun (Asia) Investment Arkema ASE Technology Holding Asia Vital Components Company Limited AT&S Auras Technology Co., Ltd. Avary Holding Baotou Inst Magnetic New Materials Co., Ltd.\* Bemis Associates Bichamp Cutting Technology Biel Crystal (HK) Manufactory Ltd Bin Chuan Enterprise Co., Ltd.\* BOE Bosch Sensortec GmbH\* Bourns K.K. Boyd Corporation Bruel & Kjaer Bumchun Precision Co., Ltd. Engineered Materials Solutions LLC Epistar\* Everlight Electronics Co., Ltd. Fastway Creation Flex Ltd. Flexium Interconnect Inc. Fujikura Limited Future Hi Tech Company Limited G. Bopp & Co. AG General Interface Solution Ltd. Global Lighting Technologies Goertek Golden Arrow Printing Company Limited GSEO Guangdong Ellington H.B. Fuller Hama Naka Shoukin Industry Company Limited Henkel Hi-P International Limited HIROSE ELECTRIC CO., LTD. Holmen Iggesund\* Hon Hai Precision Industry I-PEX Inc. INB Electronics Infineon Technologies AG Injection Rubber Industrial Co., Ltd. Interplex Holdings Limited Intramedia ITM Semiconductor Co., Ltd. J.Pond Industry (Dongguan) Co., Ltd. Jabil Inc. James Cropper PLC\* Japan Aviation Electronics Jarllytec JCET Group Company Limited\* JDI Jiafeng Coating Co., Ltd.\* Jiangsu Enoel New Material Technology Co., Ltd.\* Jiangsu Gian Jiangsu Jun Technology\* Jiangyin Kangrui Molding Technology Company Limited Jinlong Machinery and Electronics Jones Tech PLC JXTG Holdings Inc. Kam Kiu Aluminium KC Precision Technology (Dongguan) Co.,Ltd\* Keiwa Incorporated Kersen Science & Technology Kioxia Holdings Corporation Knowles Corporation\* KOJA (Cayman) Co., Ltd. Konrad GmbH Kunshan KIMD Co. Ltd Kunshan Luxin\* Laboratorio Elettrofisico Largan Precision Co., Ltd. - Asterisks denote suppliers that have newly committed to 100 percent renewable electricity (since March 2022). * * * LEALEA Enterprise Co., Ltd. Lens Technology LG Display LG Energy Solution LG Innotek\* Lishen Lite-On Technology Corp. LOTES Co., Ltd. Luen Fung Group Lumileds Luxshare-ICT Marian Inc. Micron Minebea Mitsumi Inc. Mingxun Molex Inc. Multi-Fineline Electronix, Inc. Murata Manufacturing Co., Ltd. Nan Ya PCB Nanofilm Nidec Nippon Mektron (Mektec) Ningbo Magsound Industry Co., Ltd. Nishoku Technology Nissha Co., Ltd.\* Nitto Denko Corporation Nordic Semiconductor ASA ON Semiconductor Corporation\* Paishing Technology Company Pegatron Penn Engineering Phone In Mag-Electronics Pioneer Material Precision Tech Co., Ltd. Plansee Group Platinum Optics Technology Incorporated PPG Industries Primax Group Qiandong Rare Earth Group Co., Ltd.\* Qorvo Quadrant Quanta Computer ROE SABIC RyPax Wing Fat Inc. RRD SAES Getters S.p.A. Saati S.p.A.\* Samsung Electronics Co., Ltd. (Memory Division)\* Samsung Display\* Samsung Electro-Mechanics Company Limited\* Seoul Semiconductor Seiko Advance Ltd. SFS Group AG Sharp Corporation Shandong Innovation Metal Technology Co., Ltd. Shanghai LianYing Screws Co., Ltd.\* Shenzhen Deren Electronic Co., Ltd. Shenzhen Forceblack Technology Co., Ltd\* Shenzhen Shi Zhenghe Zhongxin Share Holdings Co., Ltd. Shenzhen Linkconn Electronics Co., Ltd.\* Sumida Corporation\* Shenzhen Shindy Technology Co., Ltd. Stora Enso Oyj Sumitomo Chemical Company Limited\* Sumitomo Electric Industries Shenzhen Sunway Communication Company Limited Sunny Optical Sunrex Technology Corporation\* Sunwoda Electronic Simplo Technology Company Limited Suzhou Becklos Electronic Technology Co., Ltd.\* Suzhou Anjie Technology Sony Semiconductor Solutions Sichuan Furong Technology Co.,Ltd. Suzhou Copper Ze Metal Technology Co., Ltd.\* Suzhou Hengmingda Electronic Technology Co., Ltd. Suzhou Jiazhi Electronic Co., Ltd. Shin Zu Shing Co., Ltd. Tripod Technology Corporation STMicroelectronics Suzhou Shihua New Material Technology Co.,Ltd.\* Suzhou Wanxiang Technology Co., Ltd. Tailun Electronic Materials\* SK hynix SoluM Suzhou Yinke Solvay Taiwan Hodaka Technology Co., Ltd. United Test and Assembly Center (Dongguan) Co. Ltd Taiwan Surface Mounting Technology Corp.\* Unitech Taiyo Holdings Co., Ltd. Viavi Teikoku Printing Inks Manufacturing Company Limited\* Taiyo Yuden Co., Ltd. Victrex Vishay Intertechnology Incorporated\* Viscom AG Tianma Micro-Electronics (Hong Kong) Ltd. The Chemours Company Tong Tai Ying Technology Co., Ltd. tesa SE - Asterisks denote suppliers that have newly committed to 100 percent renewable electricity (since March 2022). Tongda Group Zhuhai CosMX Battery Co., Ltd. * * * Appendix D Assurance and Assurance and review statements 100 Net comprehensive carbon footprint, facilities energy, carbon, waste, paper, and water data (Apex) 102 Product carbon footprint (Fraunhofer Institute) 102 Product carbon footprint (Fraunhofer Institute) 104 Supplier Clean Energy Program (Apex) 104 Supplier Clean Energy Program (Apex) 105 Supplier Energy Efficiency Program (Apex) 105 Supplier Energy Efficiency Program (Apex) 106 Packaging fiber and plastic footprint (Fraunhofer Institute) 106 Packaging fiber and plastic footprint (Fraunhofer Institute) * * * Appendix D Net comprehensive Net comprehensive carbon footprint, facilities energy, carbon, waste, paper, and water data (Apex) INDEPENDENT ASSURANCE STATEMENT To: The Stakeholders of Apple Inc. Introduction and objectives of work Apex Companies, LLC (Apex) was engaged by Apple Inc. (Apple) to conduct an independent assurance of select environmental data reported in its 2022 environmental report (the Report). This assurance statement applies to the related information included within the scope of work described below. The intended users of the assurance statement are the stakeholders of Apple. The overall aim of this process is to provide assurance to Apple’s stakeholders on the accuracy, reliability and objectivity of Subject Matter included in the Report. This information and its presentation in the Report are the sole responsibility of the management of Apple. Apex was not involved in the collection of the information or the drafting of the Report. Apple requested Apex to include in its independent review the following (Subject Matter): Scope of Work ▪ Assurance of select environmental data and information included in the Report for the fiscal year 2022 reporting period (September 26, 2021 through September 24, 2022), specifically, in accordance with Apple’s definitions and World Resources Institute (WRI)/World Business Council for Sustainable Development (WBCSD) Greenhouse Gas Protocol: o Energy: Direct (Million Therms) and Indirect (Million kilowatt hours (mkWh)) Council for Sustainable Development (WBCSD) Greenhouse Gas Protocol: o Energy: Direct (Million Therms) and Indirect (Million kilowatt hours (mkWh)) o Renewable Energy (mkWh) o Renewable Energy (mkWh) o Water Withdrawal (Million Gallons) o Renewable Energy (mkWh) o Water Withdrawal (Million Gallons) o Greenhouse Gas (GHG) Emissions: Direct Scope 1 emissions by weight, Indirect Scope 2 o Water Withdrawal (Million Gallons) o Greenhouse Gas (GHG) Emissions: Direct Scope 1 emissions by weight, Indirect Scope 2 emissions by weight, Indirect Scope 3 emissions by weight (Purchased Goods and Services, Fuel and Energy Related Activities, Employee Commute and Business Travel) (Metric Tonnes of Carbon Dioxide equivalent) o Waste Quantities and Disposition (Metric Tonnes) o Paper Quantities (Metric Tonnes) o Appropriateness and robustness of underlying reporting systems and processes, used to collect, analyze, and review the environmental information reported (Metric Tonnes of Carbon Dioxide equivalent) o Waste Quantities and Disposition (Metric Tonnes) o Paper Quantities (Metric Tonnes) Excluded from the scope of our work is any assurance of information relating to: ▪ Text or other written statements associated with the Report ▪ Activities outside the defined assurance period The work was planned and carried out to provide reasonable assurance for all indicators and we believe it provides an appropriate basis for our conclusions. Assessment Standards 1. Virtual/ remote site visit to Apple facilities in Cork, Ireland 2. Site visit to Apple facilities in Culver City, California 3. Interviews with relevant personnel of Apple; 4. Review of internal and external documentary evidence produced by Apple; 5. Audit of environmental performance data presented in the Report, including a detailed review Our work was conducted against Apex’s standard procedures and guidelines for external Verification of Sustainability Reports, based on current best practice in independent assurance. Apex procedures are based on principles and methods described in the International Standard on Assurance Engagements (ISAE) 3000 Revised, Assurance Engagements Other than Audits or Reviews of Historical Financial Information (effective for assurance reports dated on or after Dec. 15, 2015), issued by the International Auditing and Assurance Standards Board and ISO 14064-3: Greenhouse gases -- Part 3: Specification with guidance for the validation and verification of greenhouse gas statements. 2. Site visit to Apple facilities in Culver City, California 3. Interviews with relevant personnel of Apple; 4. Review of internal and external documentary evidence produced by Apple; 5. Audit of environmental performance data presented in the Report, including a detailed review of a sample of data against source data; and 6. Review of Apple information systems for collection, aggregation, analysis and internal of a sample of data against source data; and 6\. Review of Apple information systems for collection, aggregation, analysis and internal verification and review of environmental data. Apex verified the following indicators for Apple’s Fiscal Year 2022 reporting period (September 26, 2021 through September 24, 2022): Our Findings | Parameter | Quantity | Units | Boundary/Protocol | | --- | --- | --- | --- | | Natural Gas Consumption | 903,892 | Metric million British thermal unit | Worldwide occupied properties / Apple Internal Protocol | | Electricity Consumption | 3,199 | Million kilowatt hours(mkWh) | Worldwide occupied properties / Apple Internal Protocol | | Renewable Energy | 3,199 | Million kilowatt hours(mkWh) | Worldwide / Invoiced quantities & self-generated | | Scope 1 GHG Emissions | 55,202 | Metric tonnes of carbon dioxide equivalent(tCO2e) | Worldwide occupied properties / WRI/WBCSD GHG Protocol | | Scope 2 GHG Emissions (Location-Based) | 1,065,405 | tCO2e | Worldwide occupied properties / WRI/WBCSD GHG Protocol | | Scope 2 GHG Emissions (Market-Based) | 3,018 | tCO2e | Worldwide occupied properties / WRI/WBCSD GHG Protocol | | Scope 3 GHG Emissions-Fuel and Energy Related Activities (Location-Based) | 43,578 | tCO2e | Worldwide occupied properties / WRI/WBCSD GHG Protocol Value Chain(Scope 3) | | Scope 3 GHG Emissions-Fuel and Energy Related Activities (Market-Based) | 10,648 | tCO2e | Worldwide occupied properties / WRI/WBCSD GHG Protocol Value Chain(Scope 3) | | Scope 3 GHG Emissions-Business Travel | 113,475 | tCO2e | Worldwide occupied properties / WRI/WBCSD GHG Protocol Value Chain(Scope 3) | | Scope 3 GHG Emissions-Employee Commute | 134,242 | tCO2e | Worldwide occupied properties / WRI/WBCSD GHG Protocol Value Chain(Scope 3) | | Scope 3 GHG Emissions-Work From Home Emissions(Employee Commute)(Location-Based) | 42,967 | tCO2e | Worldwide occupied properties / WRI/WBCSD GHG Protocol Value Chain(Scope 3) | | Scope 3 GHG Emissions-Work From Home Emissions(Employee Commute)(Market-Based) | 7,474 | tCO2e | Worldwide occupied properties / WRI/WBCSD GHG Protocol Value Chain(Scope 3) | | Scope 3 GHG Emissions-Other Cloud Services(Purchased Goods and Services)(Market-Based) | 0 | tCO2e | Worldwide occupied properties / WRI/WBCSD GHG Protocol Value Chain(Scope 3) | * * * | Water Withdrawal | 1,527 | Million gallons | Worldwide occupied properties / Apple Internal Protocol | | --- | --- | --- | --- | | Water Discharge | 679 | Million gallons | Worldwide occupied properties / Apple Internal Protocol | | Trash Disposed in Landfill | 15,086 | Metric tonnes | Worldwide occupied properties / Apple Internal Protocol | | Hazardous Waste(Regulated waste) | 1,261 | Metric tonnes | Worldwide occupied properties / Apple Internal Protocol | | Recycled Material(Removal by recycling contractor) | 35,583 | Metric tonnes | Worldwide occupied properties / Apple Internal Protocol | | Composted Material | 3,958 | Metric tonnes | Worldwide occupied properties / Apple Internal Protocol | | Waste to Energy | 543 | Metric tonnes | Worldwide occupied properties / Apple Internal Protocol | | C&D Landfilled | 4,877 | Metric tonnes | Worldwide occupied properties / Apple Internal Protocol | | C&D Recycled | 23,535 | Metric tonnes | Worldwide occupied properties / Apple Internal Protocol | | Paper Used | 632 | Metric tonnes | Worldwide occupied properties / Apple Internal Protocol | | Product end use avoided emissions | 200,000 | tCO2e | Worldwide occupied properties / WRII/WBCSDGHG Protocol Value Chain(Scope 3) | | Gross Carbon Footprint | | | | | --- | --- | --- | --- | | Corporate GHG Emissions(Market-Based)1 | 324,059 | tCO2e | Worldwide occupied properties/WRI/WBCSDGHG Protocol | | Product Use | 4.86 | Million metric tonnes of carbon dioxide equivalent | Worldwide occupied properties/WRI/WBCSDGHG Protocol | | Manufacturing2 | 13.44 | Million metric tonnes of carbon dioxide equivalent | Worldwide occupied properties/WRI/WBCSDGHG Protocol | | Transportation3 | 1.87 | Million metric tonnes of carbon dioxide equivalent | Worldwide occupied properties/WRI/WBCSDGHG Protocol | | Recycling3 | 0.08 | Million metric tonnes of carbon dioxide equivalent | Worldwide occupied properties/WRI/WBCSDGHG Protocol | Apex Companies, LLC | Gross Carbon Footprint4 | 20.57 | Million metric tonnes of carbon dioxide equivalent | Worldwide occupied properties / WRI/WBCSD GHG Protocol | | --- | --- | --- | --- | 1. Corporate GHG Emissions = Scope 1 GHG Emissions +ot verified by Apex Scope 2 (Market-Based) GHG Emissions + Scope 3 GHG Emissions 2. Manufacturing emissions (30.83 million metric tonnes) n- reportedly verified by another third-party provider- CEP emissions reductions (17.39 million metric tonnes). 3. Not Verified by Apex. Reportedly verified by another third-party provider. CEP emissions reductions (17.39 million metric tonnes). 3\. Not Verified by Apex. Reportedly verified by another third-party provider. 4\. Gross Carbon Footprint = Corporate GHG Emissions + Product Use + Manufacturing + Transportation + Recycling 3. Not Verified by Apex. Reportedly verified by another third-party provider. 4. Gross Carbon Footprint = Corporate GHG Emissions + Product Use + Manufacturing + Transportation + Recycling Based on the assurance process and procedures conducted regarding the Subject Matter, we conclude that: • The Energy, Water, Waste, Paper, and Scope 1, Scope 2, Scope 3 (Business Travel & Our Conclusion that: • The Energy, Water, Waste, Paper, and Scope 1, Scope 2, Scope 3 (Business Travel & Employee Commute) GHG Emissions assertions shown above are materially correct and are a fair representation of the data and information; • There is no evidence that the Scope 3 (Work From Home, Other Cloud Services, and Fuel and a fair representation of the data and information; • There is no evidence that the Scope 3 (Work From Home, Other Cloud Services, and Fuel and Energy Related Activities) GHG emissions are not materially correct and are not a fair representation of the data and information; • Apple has established appropriate systems for the collection, aggregation and analysis of representation of the data and information; • Apple has established appropriate systems for the collection, aggregation and analysis of relevant environmental information, and has implemented underlying internal assurance practices that provide a reasonable degree of confidence that such information is complete and accurate. Statement of independence, integrity and competence Apex has implemented a Code of Ethics across the business to maintain high ethical standards among staff in their day to day business activities. We are particularly vigilant in the prevention of conflicts of interest. The assurance team has extensive experience in conducting verification and assurance over environmental, social, ethical and health and safety information, systems and processes, has over 30 years combined experience in this field and an excellent understanding of Apex standard methodology for the Assurance of Sustainability Reports. Trevor Donaghu, Lead Verifier Program Manager Sustainability and Climate Change Services Attestation: David Reilly, Technical Reviewer Principal Consultant Sustainability and Climate Change Services March 13, 2023 * * * Appendix D Product carbon Product carbon footprint (Fraunhofer Institute) Letter of Assurance Comprehensive Carbon Footprint – Scope 3: Product related Carbon Comprehensive Carbon Footprint – Scope 3: Product related Carbon Footprint for Fiscal Year 2022 Fraunhofer IZM reviewed Apple’s scope 3 carbon footprint data related to the products manufactured and sold by Apple Inc. in fiscal year 2022. Summary This review checks transparency of data and calculations, appropriateness of supporting product related data and assumptions, and overall plausibility of the calculated comprehensive annual carbon footprint comprised of emissions derived from the life cycle This review and verification covers Apple’s annual greenhouse gas emissions and does not replace reviews conducted for individual product LCAs for greenhouse gas emissions (GHGs). The life cycle emissions data produced by Apple for individual products has been calculated in accordance to the standard ISO 14040/14044: Environmental management – Life cycle assessment – Principles and framework / Requirements and guidelines. This review and verification furthermore complies with ISO 14064-3: Greenhouse gases – Part 3: Specification with guidance for the validation and verification of greenhouse gas assertions. • Assumptions and estimations made are appropriate product related data and assumptions, and overall plausibility of the calculated comprehensive annual carbon footprint comprised of emissions derived from the life cycle assessment (LCA) of Apple products shipped in fiscal year 2022. This review and verification focuses on Scope 3 emissions for products sold by Apple Inc. (as defined by WRI/WBCSD/Greenhouse Gas Protocol – Scope 3 Accounting and Reporting Standard). These criteria are also fundamental to the review of LCAs conducted for individual product emissions. The reviewers note that the largest share (99%) of Apple Inc. annual carbon footprint is comprised of scope 3 emissions from individual products. The aforementioned criteria have been regularly reviewed by Fraunhofer IZM since 2007 with a view to • Selection of primary and secondary data is appropriate and methodologies used are adequately disclosed • The system, boundaries and functional unit are clearly defined providing independent feedback that can facilitate continuous improvement and refinement in the LCA methodology applied by Apple Inc. Data reported by Apple is as follows: | | Manufacturing | Transportation | Product Use | Recycling | Total base product footprint | | --- | --- | --- | --- | --- | --- | | 2022 | 30.83 | 1.87 | 5.06 | 0.08 | 37.84 | | \[MMT CO2e\] | \[MMT CO2e\] | \[MMT CO2e\] | \[MMT CO2e\] | \[MMT CO2e\] | | MMT CO2 e: million metric tons carbon dioxide equivalents The total scope 3 product related carbon footprint is reported to be 37.84 million metric tons CO2e, applying a location-based method reflecting the average emissions intensity of grids on which energy consumption occurs. This figure does not include greenhouse gas emissions reductions for manufacturing resulting from Apple renewable energy projects, supplier renewable electricity purchases, and supplier renewable electricity installations. Based on the process and procedures conducted, there is no evidence that the Greenhouse Gas (GHG) assertion with regards to scope 3 carbon footprint • is not materially correct and is not a fair representation of GHG data and information, and has not been prepared in accordance with the related International Standard on GHG quantification, monitoring and reporting. 2 Reviewed Data and Plausibility Check A verification and sampling plan as required by ISO 14046-3 has been established for the comprehensive carbon footprint review and verification, defining the level of assurance, objectives, criteria, scope and materiality of the verification. As part of this review and verification Apple disclosed following data to Fraunhofer IZM: • Sales data for FY2022, including accessories and including AppleCare, Apple's extended warranty and technical support plans for their devices. • Life cycle GHG emissions for all products, differentiating the actual product configurations (e.g. memory capacity) • Calculation methodology for the comprehensive carbon footprint • Detailed analysis of the comprehensive carbon footprint including: * * * Fraunhofer This review comprises a check of selected data, which are most influential to the overall carbon footprint. The overall plausibility check addressed the following questions: o Detailed product specific split into life cycle phases • Are product LCAs referenced and updated with more recent data correctly? The data and information supporting the GHG assertion were projected (use phase and recycling) and historical (i.e. fiscal year 2022 data regarding sales figures, manufacturing, transportation, use patterns where available). • Are results for products, for which no full LCA review was undertaken, plausible? This review was done remotely. o The contribution of individual products and product families to the overall carbon footprint In FY2022 and beginning of FY2023 11 recent product LCA studies have been reviewed successfully against ISO 14040/44. These LCAs cover product segments iPhone, iPad, MacBook Air, and MacBookPro. These recently reviewed LCA studies cover products which represent in total 35.6% of the total scope 3 carbon footprint. Representatives of other product segments (iMac, Apple Watch, iPod, Mac Pro, HomePod, AirPort Express / AirPort Extreme, Apple TV, Airpods and Beats products) underwent no or only minor design changes compared to those which went through a full LCA review in former years. All reviewed LCA studies up to now cover in total 68.4% of the total scope 3 carbon footprint. 3 Findings All questions raised in the course of the review were answered by Apple and related evidence was provided where needed. For all product LCA calculations, where exact data was missing, the principle of a worstcase approach has been followed and results have been calculated with rather conservative estimates. Apple’s assessment approach is excellent in terms of granularity of the used calculation data. A significant share of components is modelled with accurate primary data from Apple’s suppliers. The review has not found assumptions or calculation errors on the carbon footprint data level that indicate the scope 3 carbon footprint has been materially misstated. The excellent analysis meets the principles of good scientific practice. Berlin, March 1, 2023 - Karsten Schischke - Fraunhofer IZM Dept. Environmental and Reliability Engineering - Marina Proske - Fraunhofer IZM Dept. Environmental and Reliability Engineering 4 Conclusions Reviewer Credentials and Qualification Karsten Schischke: Experience and background in the field of Life Cycle Assessments include Karsten Schischke: Experience and background in the field of Life Cycle Assessments include • Life Cycle Assessment course and exam as part of the Environmental Engineering studies (Dipl.-Ing. Technischer Karsten Schischke: Experience and background in the field of Life Cycle Assessments include • Life Cycle Assessment course and exam as part of the Environmental Engineering studies (Dipl.-Ing. Technischer Umweltschutz, Technische Universität Berlin, 1999) • more than 150 Critical Reviews of LCA and PCF studi Umweltschutz, Technische Universität Berlin, 1999) • more than 150 Critical Reviews of LCA and PCF studi ICT equipment, home automation devices, servers, dees since 2005 (batteries, displays, mobile devices, sktop computers, inverters) for 7 different industr networked y clients and of the EPEAT Environmental Benefits Calculator • Coordination of and contribution to compilation of more than 100 ELCD datasets (available at [www.lca2go.eu](http://www.lca2go.eu/); and of the EPEAT Environmental Benefits Calculator • Coordination of and contribution to compilation of more than 100 ELCD datasets (available at [www.lca2go.eu](http://www.lca2go.eu/); product groups: hard disk drives, semiconductors, printed circuit boards, photovoltaics) • Environmental Lifecycle Assessments following the MEEuP / MEErP methodology in several Ecodesign Product product groups: hard disk drives, semiconductors, printed circuit boards, photovoltaics) • Environmental Lifecycle Assessments following the MEEuP / MEErP methodology in several Ecodesign Product Group Studies under the European Ecodesign Directive since 2007 (external power supplies, complex settop-boxes, machine tools, welding equipment, mobile phones, tablets) comparative Life Cycle Assessment of SIM technologiesearch projects since 2000 (wafer bumping, printed es machine tools, welding equipment, mobile phones, tablets) comparative Life Cycle Assessment of SIM technologiesearch projects since 2000 (wafer bumping, printed es •• various environmental gate-to-gate assessments in r Marina Proske: Experience and background in the field of Life Cycle Assessments include • Life Cycle Assessment course and exam as part of the Environmental Engineering studies (Dipl.-Ing. Tec board manufacturing) Further updated information at: [www.linkedin.com/in/karsten-schischke](http://www.linkedin.com/in/karsten-schischke) Marina Proske: Experience and background in the field of Life Cycle Assessments include • Life Cycle Assessment course and exam as part of the Environmental Engineering studies (Dipl.-Ing. Technischer Umweltschutz, Technische Universität Berlin, 2009) • Critical Reviews of LCA studies incl. water, fiber and plastic footprints since 2012 for 2 industry clients and of the Umweltschutz, Technische Universität Berlin, 2009) • Critical Reviews of LCA studies incl. water, fiber and plastic footprints since 2012 for 2 industry clients and of the EPEAT Environmental Benefits Calculator Life Cycle Assessment of modular smartphones (Fairphone 2, 3 and 4) EPEAT Environmental Benefits Calculator Life Cycle Assessment of modular smartphones (Fairphone 2, 3 and 4) •• Studies on the environmental assessment and carbon footprint of ICT Life Cycle Assessment of modular smartphones (Fairphone 2, 3 and 4) •• Studies on the environmental assessment and carbon footprint of ICT • Studies on material and lifetime aspects within the MEErP methodology •• Studies on the environmental assessment and carbon footprint of ICT • Studies on material and lifetime aspects within the MEErP methodology Further updated information at: [https://de.linkedin.com/in/marina-proske-74347164/en](https://de.linkedin.com/in/marina-proske-74347164/en) * * * Appendix D Supplier Clean Supplier Clean Energy Program (Apex) INDEPENDENT ASSURANCE STATEMENT To: The Stakeholders of Apple Inc. Introduction and objectives of work Apex Companies, LLC (Apex) was engaged by Apple Inc. (Apple) to conduct an independent assurance of its Supplier Clean Energy Program data reported in its 2022 environmental report (the Report). This assurance statement applies to the related information included within the scope of work described below. The intended users of the assurance statement are the stakeholders of Apple. The overall aim of this process is to provide assurance to Apple’s stakeholders on the accuracy, reliability and objectivity of select information included in the Report. This information and its presentation in the Report are the sole responsibility of the management of Scope of Work Apple requested Apex to include in its independent review the following: ▪ Methodology for tracking and verifying supplier clean energy contributions, including the Energy Survey, Renewable Energy Agreement, and other forms of supporting documentation provided by suppliers where available; ▪ Assurance of Clean Energy Program data and information for the fiscal year 2022 reporting ▪ Assurance of Clean Energy Program data and information for the fiscal year 2022 reporting period (September 26, 2021 through September 24, 2022), specifically, in accordance with Apple’s definitions: o Energy: Reported megawatt-hours (MWh) of clean energy attributed to the Clean Energy Program for suppliers; o Operational Capacity in megawatts (MWac) of clean energy in support of Apple manufacturing as a part of Apple’s Supplier Clean Energy Program; o Avoided Greenhouse Gas (GHG) emissions associated with clean energy attributed to the Clean Energy Program; o Appropriateness and robustness of underlying reporting systems and processes, used to collect, analyze, and review the information reported. Excluded from the scope of our work is any assurance of information relating to: ▪ Text or other written statements associated with the Report 3. Interviews with relevant personnel of Apple; 4. Review of internal and external documentary evidence produced by Apple; 5. Audit of environmental performance data presented in the Report, including a detailed review of a sample of data against source data; and 6. Site visits to Apple facilities in Culver City, California 7. Interviews with relevant personnel of Apple; 8. Review of Apple information systems for collection, aggregation, analysis and internal verification and review of environmental data. The work was planned and carried out to provide reasonable assurance for all indicators and we believe it provides an appropriate basis for our conclusions. Apex verified the following indicators for Apple’s Fiscal Year 2022 reporting period (September 26, 2021 through September 24, 2022): Our Findings | Parameter | Quantity | Units | Boundary/Protocol | | --- | --- | --- | --- | | Clean Energy Use | 23.66 | Million megawatt hours(mMWh) | Apple suppliers/Apple Internal Protocol | | Avoided GHG Emissions | 17.39 | Million metric tons of carbon dioxide equivalent(mMtCO2e) | Apple suppliers/Apple Internal Protocol | | Operational Capacity | 13,708 | Megawatts(MWac) | Apple suppliers/Apple Internal Protocol | Our Conclusion • The Clean Energy Use, Avoided GHG Emissions, and Operational Capacity assertions shown above are materially correct and are a fair representation of the data and information; and Based on the assurance process and procedures conducted, we conclude that: • Apple has established appropriate systems for the collection, aggregation and analysis of relevant environmental information, and has implemented underlying internal assurance practices that provide a reasonable degree of confidence that such information is complete and accurate. Statement of independence, integrity and competence No member of the assurance team has a business relationship with Apple, its Directors or Managers beyond that required of this assignment. We have conducted this verification independently, and there has been no conflict of interest. The assurance team has extensive experience in conducting verification and assurance over environmental, social, ethical and health and safety information, systems and processes has over 30 years combined experience in this field and an excellent understanding of Apex standard,methodology for the Assurance of Sustainability Reports. Principal Consultant Sustainability and Climate Change Services Attestation: Apex Companies, LLC * * * Appendix D Supplier Energy Supplier Energy Efficiency Program (Apex) INDEPENDENT ASSURANCE STATEMENT To: The Stakeholders of Apple Inc. Introduction and objectives of work Apex Companies, LLC (Apex) was engaged by Apple Inc. (Apple) to conduct an independent assurance of its Supplier Energy Efficiency Program data. This assurance statement applies to the related information included within the scope of work described below. The intended users of the assurance statement are the stakeholders of Apple. The overall aim of this process is to provide assurance to Apple’s stakeholders on the accuracy, reliability and objectivity of the reported information. This information and its presentation are the sole responsibility of the management of Apple. This information and its presentation are the sole responsibility of the management of Apple. Apex was not involved in the collection of the information or the drafting of the reported information. Scope of work Apple requested Apex to include in its independent review the following: ▪ Methodology for tracking and verifying supplier energy efficiency projects, including supplier energy audit reports, supplier progress reports, energy efficiency project verifications, and other forms of supporting documentation provided by suppliers where available; ▪ Assurance of Energy Efficiency Program data and information for the fiscal year 2022 reporting period (September 26, 2021 through September 24, 2022), specifically, in accordance with Apple’s definitions: o Avoided Greenhouse Gas (GHG) emissions associated with energy reductions o Avoided Greenhouse Gas (GHG) emissions associated with energy reductions attributed to the Energy Efficiency Program; o Appropriateness and robustness of underlying reporting systems and processes, used to collect, analyze, and review the information reported. Excluded from the scope of our work is any assurance of information relating to: ▪ Activities outside the defined assurance period. Methodology As part of its independent verification, Apex undertook the following activities: 2. Review of documentary evidence produced by Apple; 3. Review of Apple’s systems for quantitative data aggregation. 4. Audit of performance data; Apex Companies, LLC The work was planned and carried out to provide limited, rather than reasonable assurance and we believe it provides an appropriate basis for our conclusions. Our Findings Apex verified Avoided Greenhouse Gas emissions for fiscal year 2022 reporting periods: | Period | Quantity | Units | Boundary/Protocol | | --- | --- | --- | --- | | FY2022(9/26/2021-9/24/2022) | 1.35 | Million metric tons of carbon dioxide equivalent | Apple suppliers/Apple Internal Protocol | On the basis of our methodology and the activities described above: ▪ Nothing has come to our attention to indicate that the reviewed emissions data within the scope of our verification are inaccurate and the information included therein is not fairly stated and have not been prepared in accordance with Apple’s stated protocols for the Supplier Energy Efficiency Program; ▪ It is our opinion that Apple has established appropriate systems for the collection, aggregation and analysis of quantitative data such as energy and associated GHG emissions reductions. This independent statement should not be relied upon to detect all errors, omissions or misstatements that may exist. Statement of independence, integrity and competence No member of the assurance team has a business relationship with Apple, its Directors or Managers beyond that required of this assignment. We have conducted this verification independently, and there has been no conflict of interest. The assurance team has extensive experience in conducting verification and assurance over The assurance team has extensive experience in conducting verification and assurance over environmental, social, ethical and health and safety information, systems and processes, has over 30d methodology for the Assurance of Sustainability Reports years combined experience in this field and an excellent understanding of Apex standar. Program Manager Sustainability and Climate Change Services Attestation: David Reilly, Technical Reviewer Principal Consultant Principal Consultant Sustainability and Climate Change Services Principal Consultant Sustainability and Climate Change Services * * * Appendix D Packaging fiber Packaging fiber and plastic footprint (Fraunhofer Institute) Letter of Assurance Comprehensive Carbon Footprint – Scope 3: Product related Carbon Comprehensive Carbon Footprint – Scope 3: Product related Carbon Footprint for Fiscal Year 2022 Fraunhofer IZM reviewed Apple’s scope 3 carbon footprint data related to the products manufactured and sold by Apple Inc. in fiscal year 2022. Summary This review checks transparency of data and calculations, appropriateness of supporting product related data and assumptions, and overall plausibility of the calculated comprehensive annual carbon footprint comprised of emissions derived from the life cycle assessment (LCA) of Apple products shipped in fiscal year 2022. This review and verification focuses on Scope 3 emissions for products sold by Apple Inc. (as defined by WRI/WBCSD/Greenhouse Gas Protocol – Scope 3 Accounting and Reporting Standard). • The system, boundaries and functional unit are clearly defined Assumptions and estimations made are appropriate providing independent feedback that can facilitate continuous improvement and refinement in the LCA methodology applied by Apple Inc. Data reported by Apple is as follows: | Manufacturing | Transportation | Product Use | Recycling | Total base product footprint | | --- | --- | --- | --- | --- | | | | | | | | 2022 | 30.83 | 1.87 | 5.06 | 0.08 | 37.84 | | --- | --- | --- | --- | --- | --- | | \[MMT CO2e\] | \[MMT CO2e\] | \[MMT CO2e\] | \[MMT CO2e\] | \[MMT CO2e\] | | MMT CO2 e: million metric tons carbon dioxide equivalents • is not materially correct and is not a fair representation of GHG data and information, and Based on the process and procedures conducted, there is no evidence that the Greenhouse Based on the process and procedures conducted, there is no evidence that the Greenhouse Gas (GHG) assertion with regards to scope 3 carbon footprint • has not been prepared in accordance with the related International Standard on GHG quantification, monitoring and reporting. 2 Reviewed Data and Plausibility Check As part of this review and verification Apple disclosed following data to Fraunhofer IZM: • Sales data for FY2022, including accessories and including AppleCare, Apple's extended warranty and technical support plans for their devices. • Life cycle GHG emissions for all products, differentiating the actual product configurations (e.g. memory capacity) • Calculation methodology for the comprehensive carbon footprint • Detailed analysis of the comprehensive carbon footprint including: * * * Introduction Climate Change Resources Smarter Chemistry Engagement and Advocacy **Appendix** 2023 Environmental Progress Report107 o The breakdown of the carbon footprint into life cycle phases manufacturing, transportation, product use and recycling o Detailed product specific split into life cycle phases o The contribution of individual products and product families to the overall carbon footprint The data and information supporting the GHG assertion were projected (use phase and recycling) and historical (i.e. fiscal year 2022 data regarding sales figures, manufacturing, transportation, use patterns where available). This review comprises a check of selected data, which are most influential to the overall carbon footprint. The overall plausibility check addressed the following questions: - Are product LCAs referenced and updated with more recent data correctly? - Are results for products, for which no full LCA review was undertaken, plausible? This review was done remotely. 3 Findings 4 Conclusions Comprehensive Carbon Footprint Letter of Assurance Client: Apple Inc. * * * Introduction Climate Change Resources Smarter Chemistry Engagement and Advocacy **Appendix** 2023 Environmental Progress Report 108 ## Appendix E # Environment, Health and Safety Policy * * * Appendix E Environment, Health and Safety Policy Environment, Health and Safety Policy Mission Statement Apple Inc. is committed to protecting the environment, health and safety (EHS) of our employees, contractors, and customers in the design, research, manufacture, distribution, and use of our products and services and the global communities where we operate. We recognize that by integrating sound EHS management practices into all aspects of our business, we can offer technologically innovative products and services while conserving and enhancing resources for future generations. Apple strives for continuous improvement in our EHS management systems and in the environmental quality of our products, processes, and services. Guiding Principles Meet or exceed all applicable EHS requirements. Where laws and regulations do not provide adequate controls, apply higher standards to protect human health and the environment. Design, manage, and operate our facilities safely, promote energy efficiency and renewable energy, and protect biodiversity and the environment. Encourage contractors, vendors, and suppliers to provide safe working conditions, treat workers with dignity and respect, act fairly and ethically, use environmentally responsible practices, and have effective programs for the control of environmental aspects, wherever they perform services for Apple. Support and promote sound scientific principles, practices, and public policy initiatives that enhance environmental quality, health and safety performance, and ethical sourcing of materials. Communicate EHS policies and programs to Apple employees and stakeholders, and ensure suppliers operate in accordance with Apple’s Supplier Code of Conduct. Supplier Responsibility resources and Supplier Code of Conduct are available at apple.com/uk/supplier-responsibility. Strive to create products that are safe in their intended use, conserve energy and materials, and prevent pollution throughout the product life cycle, including design, manufacture, use, and end-of-life management. Pursue continual improvement through the evaluation of our EHS performance by monitoring ongoing performance results and through periodic management reviews, as well as a commitment to correcting EHS nonconformities. Ensure that all employees are aware of their role and responsibility to fulfill and sustain Apple’s EHS management systems and policy by providing training and tools in the user’s primary language. Luca Maestri Senior Vice President and CFO February 2023 * * * Introduction Climate Change Resources Smarter Chemistry Engagement and Advocacy **Appendix** 2023 Environmental Progress Report110 ## Appendix F # ISO 14001 certification * * * Appendix F ISO 14001 certification Apple operates manufacturing facilities in Cork, Ireland. We certify 100 percent of these facilities with ISO 14001. NSAI Certificate of Registration of Environmental Management System to I.S. EN ISO 14001:2015 A Hollyhill Industrial Estate AHollyhill p Cork Ireland pp pl NSAI certifies that the aforementioned company has been assessed and deemed to comply with the provisions of the standard referred to above in le respect of:- e This certificate remains valid on condition that the Approved Environmental Management System is maintained in an adequate and effi partner of IQNet –cacious manner. NSAI is a the international certification network ( [www.iqnetcertification.com](http://www.iqnetcertification.com/)) Registration Number: 14.0202 Original Registration: 20 March 2001ra Last amended on: 14 July 2021 Valid from: 14 July 2021 Remains valid to: 10 July 2024 Approved by: Stewart Hickey Head - Business Excellence, NSAI All valid certifications are listed on NSAI’s website may be verified under “Certified Company Search”– [www.nsai.ie](http://www.nsai.ie/). The continued validity of this certificateti THE INTERNATIONAL CERTIFICATION NETWORK AAppppllee OOppeerraattiioonnss EEuurrooppee Hollyhill Industrial Estate Hollyhill Cork Ireland for the following scope: A ooppeerraattiioonnaall aaccttiivviittiieess rreellaatte has implemented and maintains a TThhee mmaannaaggeemmeenntt ooff aallll EEMMEEAA ooppeerraattiioonnaall aaccttiivviittiieess rreellaatteedd ttoo mmaannuuffaaccttuurriinngg,, ssaalleess,, ddeelliivveerryy aanndd aafftteerr ssaalleess ssuuppppoorrtt ffoorr ddiirreecctt rreettaaiill aanndd cchhaannnneell ccuussttoommeerrss.. which fulfils the requirements of the following standard: II..SS.. EENN IISSOO 1144000011::22001155 II..SS.. EENN IISSOO 1144000011::22001155 IIssssuueedd oonn:: 1144 JJuullyy 22002211 FFiirrsstt iissssuueedd oonn:: 2200 MMaarrcchh 22000011 EExxppiirreess oonn:: 1100 JJuullyy 22002244 This attestation is directly linked to the IQNet Partner’s original certificate and shall not be Registration Number: IE-14.0202 AENOR Spain AFNOR Certification France APCER Portugal CCC Cyprus CISQ Italy CQC China CQM China CQS Czech Republic Cro C证 Certosa DQS Holding GmbH FCAM Germany FCAV BIFONDONORMA Venezuela ICONTE Colombia Inspecta Sertifioitio Oy Finland INTECO Costa Rica RICA Argentina IQA Japan KFQ Korea MIRCT Greece MSIZ Hungary Nemko AS Norway NSAI Ireland NYCE-SIGE México PCB Comp Quality Austria Austria RR Russia SI Israel Slovenia SIRIM QAS International Malaysia SQS Switzerland SRAC Romania TEST St Petersburg Russia TSE Turkey YUQS Serbia IQNet is represented in the USA by: AFNOR Certification, CISQ, DQS Holding GmbH and NSAi Inc. - The list of IQNet partners is valid at the time of issue of this certificate. Updated information is available under [www.iqnet-certification.com](http://www.iqnet-certification.com/) CERT-067.14001: MMA IQNet NSAI 14001 2015 A4 (1) * * * Report notes About this report This report is published annually, typically in April, and focuses primarily on fiscal year activities. This report addresses environmental impacts and activities at Apple facilities (corporate offices, data centers, and retail stores), as well as the life cycle impacts of our products, including in the manufacturing, transportation, use, and end-oflife phases. To provide feedback on this report, please contact [environment-report@apple.com](mailto:environment-report@apple.com). Reporting year We track our environmental progress based on Apple’s fiscal year. All references to a year throughout the report refer to Apple’s fiscal years, unless “calendar year” is specified. Apple’s fiscal year is the 52- or 53-week period that ends on the last Saturday of September. Data assurance We obtain third-party verification for some of the information in this report from Apex Companies and the Fraunhofer Institute in Germany (as denoted in Appendix D). Data in this report, including data or verification from third parties, reflects estimates using methodologies and assumptions believed to be reasonable and accurate. Those estimates, methodologies, and assumptions may change in the future as a result of new information or subsequent developments. In addition, the bulk of Apple’s recycled content data is certified and thus verified by an independent third party. Less than 5 percent of the total mass shipped in Apple products in fiscal year 2022 is recycled content data that is either supplier verified, meaning it has been reported by the supplier and crosschecked by Apple, or supplier reported, meaning it has been reported by the supplier based on production and allocation values. In all cases, Apple defines recycled content in alignment with ISO 14021. Product claims are made as of the launch date of those individual products, and they are accurate as of product launch. Forward-looking statements The report does not cover all information about our business. References in this report to information should not be construed as a characterization regarding the materiality of such information to our financial results or for purposes of the U.S. securities laws. While certain matters discussed in this report may be significant, any significance should not be read as necessarily rising to the level of materiality used for the purposes of complying with the U.S. federal securities laws and regulations. The information covered by the report contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding our environmental goals, commitments, and strategies and related business and stakeholder impacts. Forward-looking statements can be identified by words such as “future,” “anticipates,” “believes,” “estimates,” “expects,” “intends,” “plans,” “predicts,” “will,” “would,” “could,” “can,” “may,” “aim,” “strive,” and similar terms. These statements involve risks and uncertainties, and actual results may differ materially from any future results expressed or implied by the forward-looking statements. These risks and uncertainties include, without limitation, any failure to meet stated environmental targets, goals, and commitments, and execute our strategies in the time frame expected or at all, global sociodemographic and economic trends, changing government regulations, technological innovations, climate-related conditions and weather events, our ability to gather and verify data regarding environmental impacts, the compliance of various third parties with our policies and procedures, and our expansion into new products, services, technologies, and geographic regions. More information on risks, uncertainties, and other potential factors that could affect our business and performance is included in our filings with the U.S. Securities and Exchange Commission, including in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of the company’s most recently filed periodic reports on Form 10-K and Form 10-Q and subsequent filings. Further, from time to time we engage in various initiatives (including voluntary disclosures, policies, and programs), but we cannot guarantee that these initiatives will have the desired effect. We assume no obligation, and expressly disclaim any duty (including in response to new or changed information) to update any forward-looking statements or information, which speak as of their respective dates. Readers should not place undue reliance on the forward-looking statements made in this report. Moreover, many of the assumptions, standards, metrics, and measurements used in preparing this report continue to evolve and are based on assumptions believed to be reasonable at the time of preparation, but should not be considered guarantees. Given the inherent uncertainty of the estimates, assumptions, and timelines contained in this report, we may not be able to anticipate whether, or the degree to which, we will be able to meet our plans, targets, or goals in advance. For more information Respect for human rights shapes how we make our products and services. Our responsibilities go beyond our stores and corporate offices: They extend to our supply chain, the communities we’re a part of, and the planet we all share. Read Our Commitment to Human Rights. Apple’s Racial Equity and Justice Initiative aims to help dismantle systemic barriers to opportunity and combat injustices faced by communities of color. Read more about our work to uphold the highest standards of labor and human rights, health and safety, and environmental stewardship across our global supply chain in our People and Environment in Our Supply Chain 2023 Annual Progress Report. * * * End notes Introduction 1 Apple is carbon neutral for corporate emissions, which include scope 1 and 2 emissions, as well as scope 3 emissions from employee travel, business commute, work from home, and third-party cloud services. 2 Apple follows the GHG Protocol Corporate Accounting and Reporting Standard (GHG Protocol) to calculate value chain emissions. The GHG Protocol defines scope 1 emissions as direct greenhouse gas emissions that occur from sources that are owned or controlled by the company; scope 2 emissions as the indirect greenhouse gas emissions from the generation of purchased electricity, steam, heat, and cooling consumed by the company; and scope 3 emissions as all “other indirect emissions” that occur in the value chain of the reporting company, including both upstream and downstream emissions. Apple sets an operational boundary for its emissions and excludes the following scope 3 categories, as defined by the GHG Protocol, which collectively make up less than 10 percent of our 2015 base year scope 3 emissions: “capital goods” due to limited data availability, which limits our ability to influence these emissions, and “waste generated in operations,” as these emissions are negligible. 3 Apple reports data about the recycled content of its products at different levels of fidelity, based on the level of independent data verification. The bulk of Apple’s recycled content data is certified and thus verified by an independent third party. Less than 5 percent of the total mass shipped in Apple products in fiscal year 2022 contains recycled content that is either supplier verified, meaning it has been reported by the supplier and cross-checked by Apple, or supplier reported, meaning it has been reported by the supplier based on production and allocation values. In all cases, Apple defines recycled content in alignment with ISO 14021. We do not currently include industry-average recycled content, which may result in underreporting actual recycled content. Total recycled material shipped in products is driven by product material composition and total sales — as a result, this overall recycled or renewable content percentage may fluctuate based on the number and type of products sold each year. 4 Renewable electricity refers to fossil fuel–free sources of energy, like 4 Renewable electricity refers to fossil fuel–free sources of energy, like wind, solar, and low-impact hydroelectricity projects. Clean electricity refers to both renewable electricity as well as other projects that Apple considers “low carbon” but not “renewable,” like nuclear and large-impact hydroelectricity projects, which may be included as a result of low-carbon electricity provided by the grid. 5 We plan to reach carbon neutrality beginning with our fiscal year 2030 carbon footprint. Climate Change 7 We plan to reach carbon neutrality beginning with our fiscal year 2030 carbon footprint. 8 Intergovernmental Panel on Climate Change (IPCC), “Summary for Policymakers of IPCC Special Report on Global Warming of 1.5°C approved by governments,” press release, [www.ipcc.ch/2018/10/08/](http://www.ipcc.ch/2018/10/08/) summary-for-policymakers-of-ipcc-special-report-on-globalwarming-of-1-5c-approved-by-governments. 9 Corporate emissions include scope 1 and 2 emissions from Apple retail stores, corporate offices, Apple-owned and colocated data centers, and Apple-produced digital content for Apple One services, as well as scope 3 emissions associated with business travel, employee commute, work from home, upstream impacts from scope 1 fuels, and use of third-party cloud services. 10 Refer to Appendix A for a description of our methodology for calculating life cycle carbon emissions. 11 The Science Based Targets initiative (SBTi) has validated the following emissions reduction target for Apple: 61.7 percent by fiscal year 2030 relative to our fiscal year 2019 emissions. This SBTi-validated target is derived from our target to reduce emissions by 75 percent by fiscal year 2030 relative to 2015, with a base year of 2019 instead. Our SBTi target excludes less than 3 percent of scope 1 and 2 emissions in the base year, including fire suppressants, refrigerant leakage, purchased or landlord-provided steam and chilled water, and certain greenhouse gases (HFC, PFC, SF6, and NF3), which do not meet Apple’s relevance threshold. In addition, our SBTi target excludes the following scope 3 categories, which collectively are approximately 10 percent of our base year scope 3 emissions: “capital goods” due to limited data availability, which limits our ability to influence these emissions, as well as “fuel and energy related activities” and “waste generated in operations,” as these emissions are negligible. 12 Gross carbon footprint refers to Apple’s carbon footprint before applying carbon offsets. Our net carbon footprint incorporates carbon offsets. 15 Eligible products are those in a product category for which ENERGY STAR certification exists. For more information, visit [www.energystar.gov](http://www.energystar.gov/). ENERGY STAR and the ENERGY STAR mark are registered trademarks owned by the U.S. Environmental Protection Agency. 13 Testing was done under the condition of streaming 4K movies played on Apple TV 4K (3rd generation) with the Siri Remote from the Apple TV app. 14 Based on sales-weighted averages of Mac, iPad, iPhone, Apple Watch, Apple TV, HomePod, AirPods, and Beats. Resources 20 Apple began sourcing 100 percent renewable electricity for its corporate operations on January 1, 2018. 25 Based on the methodology Apple uses to calculate transportation emissions, which is regularly reviewed by a third party, Fraunhofer IZM. 26 Rogelj, J., D. Shindell, K. Jiang, S. Fifita, P. Forster, V. Ginzburg, C. Handa, H. Kheshgi, S. Kobayashi, E. Kriegler, L. Mundaca, R. Séférian, and M.V.Vilariño, 2018: “Mitigation Pathways Compatible with 1.5°C in the Context of Sustainable Development.” In: Global Warming of 1.5°C. An IPCC Special Report on the impacts of global warming of 1.5°C above pre-industrial levels and related global greenhouse gas emission pathways, in the context of strengthening the global response to the threat of climate change, sustainable development, and efforts to eradicate poverty \[Masson-\ Delmotte, V., P. Zhai, H.-O. Pörtner, D. Roberts, J. Skea, P.R. Shukla,\ A. Pirani, W. Moufouma-Okia, C. Péan, R. Pidcock, S. Connors, J.B.R.\ Matthews, Y. Chen, X. Zhou, M.I. Gomis, E. Lonnoy, T. Maycock, M.\ Tignor, and T. Waterfield (eds.)\]. In Press. [www.ipcc.ch/site/assets/](http://www.ipcc.ch/site/assets/) uploads/sites/2/2019/02/SR15\_Chapter2\_Low\_Res.pdf. 21 Apple’s independent assurance provider for the Supplier Clean Energy Program conducts work against standard procedures and guidelines for external verification of sustainability reports, based on current best practice in independent assurance. The procedures are based on principles and methods described in International Standard on Assurance Engagements (ISAE) 3000 (Revised), Assurance Engagements Other than Audits or Reviews of Historical Financial Information (Effective for assurance reports dated on or after December 15, 2015), issued by the International Auditing and Assurance Standards Board, and ISO 14064-3:2019, Greenhouse gases — Part 3: Specification with guidance for the verification and validation of greenhouse gas statements. 23 2021 renewable electricity figures associated with Apple’s Supplier Clean Energy Program do not include REC purchases that Apple made to address a small increase to its carbon footprint. When accounting for the REC purchases, the total renewable energy online in Apple’s supply chain was 10.6 gigawatts, generating 18.6 million megawatthours and avoiding 14.2 million metric tons of carbon emissions. 24 ELYSIS was used in the production of the 16-inch MacBook Pro that end of each fiscal year. 29 Apple’s goal to eliminate plastic from our packaging includes retail bags, all finished goods boxes (including plastic content in labels and in-box documentation), packaging sent to our customers as part of Apple Trade In, AppleCare packaging for whole units and service modules (with the exception of plastics needed to protect items from electrostatic discharge), and secondary packaging of Apple products and accessories sold by Apple. Our goal does not include the inks, coatings, or adhesives used in our packaging. We plan to eliminate plastic from the packaging of refurbished Apple products by 2027, once old product packaging designs are phased out. 30 We currently do not account for industry average recycled content, 28 Beginning in fiscal year 2025, we plan to use 100 percent recycled cobalt in all Apple-designed batteries (on a mass-balance basis), 100 percent recycled tin soldering and 100 percent recycled gold plating of all Apple-designed rigid and flexible printed circuit boards, and 100 percent recycled rare earth elements in all magnets. We calculate our use of recycled cobalt on a mass-balance basis at the end of each fiscal year. 24 ELYSIS was used in the production of the 16-inch MacBook Pro that was released in 2019. The 16-inch MacBook Pro released in 2021 now features a 100 percent recycled aluminum enclosure. 31 Apple reports data about the recycled content of its products at different levels of fidelity, based on the level of independent data verification. The bulk of Apple’s recycled content data is certified and thus verified by an independent third party. Less than 5 percent of the total mass shipped in Apple products in fiscal year 2022 contains recycled content that is either supplier verified, meaning it has been reported by the supplier and cross-checked by Apple, or supplier reported, meaning it has been reported by the supplier based on production and allocation values. In all cases, Apple defines recycled content in alignment with ISO 14021. We do not currently include industry-average recycled content, which may result in underreporting actual recycled content. Total recycled material shipped in products is driven by product material composition and total sales — as a result, this overall recycled or renewable content percentage may fluctuate based on the number and type of products sold each year. * * * Resources continued 32 Recycled cobalt is used in all Apple-designed batteries across iPhone, iPad, and Mac devices and is accounted for on a mass balance– system basis. 33 Since publishing the “Material Impact Profiles” white paper, we’ve expanded our analysis to include biodiversity factors. 34 In Apple’s 2022 Environmental Progress Report, we stated that the 14 priority materials account for 90 percent of the total product mass shipped. For fiscal year 2022, Apple has improved its internal data models, resulting in an increase in the total product mass shipped, thereby reducing the coverage of our priority materials to 87 percent of the total product mass shipped. 35 Recycling makes better use of finite resources by sourcing from recovered, rather than mined, materials. Apple defines recycled content in alignment with ISO 14021. 36 We define biomaterials as those that can be regenerated in a human lifespan, like paper fibers and sugarcane. Biomaterials can help us use fewer finite resources. But even though biomaterials can regrow, they’re not always managed responsibly. Renewable materials are a type of biomaterial managed in a way that enables continuous production without depleting the earth’s resources. That’s why we focus on sources that are certified for their management practices. 37 Apple reports data about the recycled content of its products at different levels of fidelity, based on the level of independent data verification. The bulk of Apple’s recycled content data is certified and thus verified by an independent third party. Less than 5 percent of the total mass shipped in Apple products in fiscal year 2022 contains recycled content that is either supplier verified, meaning it has been reported by the supplier and cross-checked by Apple, or supplier reported, meaning it has been reported by the supplier based on production and allocation values. In all cases, Apple defines recycled content in alignment with ISO 14021. We do not currently include industry-average recycled content, which may result in underreporting actual recycled content. Total recycled material shipped in products is driven by product material composition and total sales — as a result, this overall recycled or renewable content percentage may fluctuate based on the number and type of products sold each year. 38 Apple’s commitment is to use 100 percent recycled cobalt, on a mass 40 Apple’s commitment is to use 100 percent recycled rare earth elements in all magnets beginning in fiscal year 2025. 41 To account for recycled aluminum, we leverage third-party certified recycled aluminum data, as well as supplier verified data, meaning it has been reported by the supplier and cross-checked by Apple. 39 Apple’s commitment is to use 100 percent recycled tin soldering and gold plating in all Apple-designed rigid and flexible printed circuit boards beginning in fiscal year 2025. 42 This statistic compares the carbon footprint of aluminum from recycled sources with primary aluminum smelted with electricity generated from coal. 43 Apple’s commitment is to use 100 percent recycled cobalt, on a mass balance–system basis, in all Apple-designed batteries beginning in fiscal year 2025. We calculate our use of recycled cobalt on a mass balance–system basis at the end of each fiscal year. 44 Apple’s commitment is to use 100 percent recycled tin soldering and gold plating in all Apple-designed rigid and flexible printed circuit boards beginning in fiscal year 2025. 45 This achievement was made in 2023 and is not reflected in the total 45 This achievement was made in 2023 and is not reflected in the total estimated recycled content, which captures fiscal year 2022 data. 46 Apple’s commitment is to use 100 percent recycled rare earth elements in all magnets beginning in fiscal year 2025. 47 Apple’s commitment is to use 100 percent recycled tin soldering and gold plating in all Apple-designed rigid and flexible printed circuit boards beginning in fiscal year 2025. 48 Beginning in fiscal year 2025, we plan to eliminate plastic from our packaging. Apple’s goal to eliminate plastic from our packaging includes retail bags, all finished goods boxes (including plastic content in labels and in-box documentation), packaging sent to our customers as part of Apple Trade In, AppleCare packaging for whole units and service modules (with the exception of plastics needed to protect items from electrostatic discharge), and secondary packaging of Apple products and accessories sold by Apple. Our goal does not include the inks, coatings, or adhesives used in our packaging. We plan to eliminate plastic from the packaging of refurbished Apple products by 2027, once old product packaging designs are phased out. 50 Refers to retail packaging. 49 Breakdown of U.S. retail packaging by weight. Adhesives, inks, and coatings are excluded from our calculations of plastic content and packaging weight. 51 Estimation of avoided plastics, paper, and carbon emissions are based on weight of materials per unit and projected sales data. 52 Estimation of avoided plastics, paper, and carbon emissions are based on weight of materials per unit and projected sales data. 54 Based on expected equivalent fiber production from our forestry projects and virgin fiber used for Apple product packaging. To determine the output of Apple’s projects, we work with our partners to understand the productive potential of these working forests. The forest management plans required to achieve or maintain certification limit harvest volumes to sustainable levels. We use these potential harvest volumes to estimate the sustainable productive capacity of these forests. 55 According to “2021–2022’s Phone Depreciation Report” published by BankMyCell, a website that tracks the trade-in and sale value of technology products. 56 This applies specifically to our U.S.-based Trade In program. 57 MIL-STD 810H is a certification for military equipment. Tested categories include: Altitude, High Temperature, Low Temperature, Temperature Shock, Immersion, Freeze/Thaw, Shock, Vibration. 58 Estimated based on rock-to-metal ratios from USGS — a change from our previous report, which used ore-to-metal ratios — and on recovery rates from iPhone main logic boards and flexes. 59 Apple is willing to license five patents relating to Daisy and certain other associated intellectual property on reasonable, royaltyfree terms. 60 Apple’s commitment is to use 100 percent recycled cobalt, on a mass balance–system basis, in all Apple-designed batteries beginning in fiscal year 2025. We calculate our use of recycled cobalt on a mass balance–system basis at the end of each fiscal year. 61 We define high stress as areas with high or extremely high overall water stress based on the WRI Aqueduct Water Risk Atlas tool and refined by additional local knowledge and research. 62 We calculate water discharge based on known evaporation, from activities like cooling and irrigation. For sites where these evaporative activities are not present, we estimate that water withdrawn is returned to municipal systems. We estimate our margin of error to be approximately 10 percent, and we will continue to update our model with new sources of data. 63 Based on previous estimated consumption and observed use patterns of nearby facilities. 70 Our Mesa and Prineville data centers are third-party certified as Zero Waste by USGBC TRUE, receiving their certifications in 2021 and 2020, respectively. TRUE requires 90 percent diversion or higher from the landfill without the use of waste-to-energy to achieve the TRUE-certified project designation. 64 These savings do not include reduction in water use from facility closures and reduced occupancy due to the COVID-19 pandemic. We consider those savings temporary, and we acknowledge that the water use was transferred to employees’ homes. © 2023 Apple Inc. All rights reserved. Apple, the Apple logo, Restore Fund, and Power for Impact are trademarks of Apple Inc. Beats is a trademark of Beats Electronics, LLC., registered in the U.S. and other countries and regions. iOS is a trademark or registered trademark of Cisco in the U.S. and other countries and is used under license. ENERGY STAR and the ENERGY STAR mark are registered trademarks owned by the U.S. Environmental Protection Agency. Other product and company names mentioned herein may be trademarks of their respective companies. 66 We account for savings through this program on a fiscal-year basis, rather than a calendar-year basis as reported in publications before fiscal year 2021. 71 All established final assembly supplier sites — or those that have been Apple suppliers for more than one year — for iPhone, iPad, Mac, Apple Watch, AirPods, HomePod, Apple TV, and Beats are third-party verified as Zero Waste by UL Solutions (UL 2799 Zero Waste to Landfill Environmental Claim Validation Procedure (ECVP). UL Solutions requires at least 90 percent diversion through methods other than waste-to-energy to achieve Zero Waste to Landfill (Silver: 90–94 percent, Gold: 95–99 percent, and Platinum: 100 percent) designations. 72 These sites have been third-party verified by UL Solutions against 65 These savings are based on data observed from pilot operations. 68 Waste diversion rates do not include construction and demolition waste or electronic waste for fiscal year 2022. Electronic waste is accounted for in the total metric tons of electronic waste that we sent to recycling, found on page 83. 69 These sites have been third-party verified by UL Solutions against 72 These sites have been third-party verified by UL Solutions against the UL 2799 Zero Waste to Landfill Environmental Claim Validation Procedure (ECVP). UL Solutions requires at least 90 percent diversion through methods other than waste-to-energy to achieve Zero Waste to Landfill (Silver: 90–, Gold: 95–99 percent, and Platinum: 100 percent94 percent) designations.