Apple sets up $300m renewable energy fund for supply chain
July 24, 2018
Apple and ten of its suppliers are investing nearly $300m over the next four years to connect suppliers in China with renewable energy sources. As part of Apple’s commitment to address climate change and increase the use of renewable energy within its supply chain, the money will go into the China Clean Energy Fund.
The fund will invest in and develop clean energy projects totalling more than 1GW of renewable energy in China, the equivalent of powering nearly a million homes.
”At Apple, we are proud to join with companies that are stepping up to address the climate challenge,” said Lisa Jackson, Apple vice president. “We’re thrilled so many of our suppliers are participating in the fund and hope this model can be replicated globally to help businesses of all sizes make a significant positive impact on our planet.”
Transitioning to clean energy can be complex. This is especially true for smaller companies that may not have access to viable clean energy sources. By virtue of its size and scale, the China Clean Energy Fund will give its participants the advantage of purchasing power and the ability to attain more attractive and diverse clean energy sources. The fund will be managed through a third party, DWS Group, which specialises in sustainable investments and will also invest in the fund.
The initial suppliers participating in the China Clean Energy Fund are Catcher Technology, Compal Electronics, Corning, Golden Arrow, Jabil, Luxshare-ICT, Pegatron, Solvay, Sunway Communication and Wistron.
This move follows Apple’s announcement earlier this year that its global facilities are powered by 100 per cent clean energy and the launch of its supplier clean energy programme in 2015. Since that programme began, 23 manufacturing partners, operating in more than ten countries, have committed to powering all their Apple production with 100 per cent clean energy.
Apple and its suppliers will generate more than 4GW of new clean energy worldwide by 2020, representing one-third of Apple’s current manufacturing electricity footprint.
Apple is also working with its suppliers to find ways to reduce greenhouse gas emissions. The company recently announced it reached a breakthrough with aluminium suppliers Alcoa and Rio Tinto on a new technology that eliminates direct greenhouse gas emissions from the traditional smelting process, a key step in aluminium production.