HERBIE

GOES

BANANAS

GREENER

APPLE
June 6, 2011

Sustainability Roadmap

Apple is already a leader in innovation and engineering, and we are applying these same talents to become an environmental leader. Based on our tangible actions and results over time, hopefully our customers, employees, shareholders and professional colleagues will all feel proud of our ongoing efforts to become a greener Apple. -Steve Jobs

Apple has yet to make any serious investments in clean energy, or use its brand to promote the cause of environmental stewardship.
renewableenergyworld.com, January 2011

Apple vastly underperforms Dell, HP, and IBM on Sustainability performance.

HERBIE

GOES

BANANAS

GREENER

APPLE
June 6, 2011

Sustainability Roadmap

CONTRIBUTING FACTORS: Manufacturing Transportation Product Use Recycling Facilities Energy Efficiency

SUSTAINABILITY
Apples vision is to bring the best user experience to its customers through its innovative hardware, software, peripherals, services and Internet offerings. Apple also recognizes the importance of being a leader in environmental sustainability in reaching that vision. Currently the electronics industry contributes an estimated 2% of greenhouse gases around the world. Of that 2%, it is estimated that Apple is responsible for 9.6 million metric tons of green house gas emissions in 2009. The company recognizes the importance of minimizing its contributions to this growing problem.

VISION

&

MISSION
products. The most important thing Apple can do is ensure future generations quality of life while providing value for customers, shareholders, and employees. This is the path to that goal.

By adding up the emissions generated from the manufacturing, transportation, product use, and recycling of Apple products as well as the emissions generated by Apple facilities the company was able to pinpoint where greenhouse gas emissions come from. Apple found that 97% of its carbon footprint is directly related to its products (manufacturing, transportation, product use and recycling) while a mere 3% comes from facilities. While most companies are focusing on energy efficient office space, Apple has instead made it a mission to reduce the carbon footprint left by its

CONTENT:
Manufacturing Transportation 3 3

Apple is on a mission to minimize the environmental impact of its products.

Product Use

STRATEGY
In order to become the industry leader in the production and distribution of sustainable products ,Apple must improve its product offerings. The company must design its products to use less material, ship with smaller packaging and be free of toxic substances. In addition the products must be created to be energy efficient in use as well recyclable whenever possible. With the launch of every new product, Apple will be one step closer to reaching its goals of reducing its carbon footprint and becoming the industry leader in environmental sustainability.

Recycling

Facilities

Energy Efficiency

Goals to 2020

GREENER

APPLE

Page 3

MANUFACTURING45% Polyvinyl Chloride (PVC) is a thermoplastic polymer. It is the third most widely produced plastic because it is cheap, durable, and easy to assemble. Although PVC has some positive attributes, it has the potential to emit toxins that other forms of plastic do not. In the electronics industry it is mainly used as an insulator and coating for electrical cables. The manufacturing of PVC uses the raw material Vinyl Chloride (VC). VC is an odorless gas that has been linked to neurological disorders and cancer of the liver. PVC manufacturing is a major contributor to air emissions of VC. In addition to being highly toxic, the VC emissions

OF

CARBON

FOOTPRINT that are known to be toxic and resistant to degrading. There are several substitutes for BFRs in electronics that provide the same fire safety using organic compounds. It has also been argued that product redesign can reduce or eliminate the need for fire retardants. Several electronics companies are already using these alternatives. Apple has begun to phase out BFRs and PVCs but has not completely eliminated them in their product lines. This has put them behind other competing electronic companies in the race to become the leader in sustainability.

can cause explosions in manufacturing facilities similar to the Formosa Plastics plant. PVC is not necessary in electronics. A number of companies are phasing it out of their product mix by using other non toxic plastic compounds. Apple has not set a date to remove PVC from its products. Major new product lines like the iPod nano and MacBook still contain PVC. Brominated Flame Retardants (BFRs) are commonly used in electronics to reduce the flammability of the product. The manufacturing of BFR synthetically uses raw materials OF CARBON

OUT OF CONTROL Five workers died, two were seriously injured, a nearby community was evacuated, and fires burned for days following a vinyl chloride explosion at the Formosa Plastics plant in Illiopolis, Ill., in April.

TRANSPORTATION5% Very little information is available on Apples supply chain because it is an important piece of competitive success.

FOOTPRINT packaging size by 53% over the past 5 years therefore decreasing carbon footprint.

However, the worldwide distribution network has a significant impact on greenhouse emissions. Apple has reduced

PRODUCT

USE46%

OF

CARBON

FOOTPRINT rated energy star compliant. However, following a recent change in energy star standards, Apple has not released how their products are scoring. Therefore, Greenpeace has scored Apple at only partially good on energy efficiency.

According to the IAWT 96% of the US population has an active cell phone. This means that much of the energy usage of Apples products is in the hands of the end consumer. Apple helps by ensuring that product designs are energy efficient.

The impact of lower energy requirements will result in less greenhouse emissions at power plants. In 2008, the MacBook computer was the first to become energy star compliant. All computer models were eventually

GREENER

APPLE

Page 4

RECYCLING1% Apples commitment to the environment includes finding the most efficient ways to reuse or recycle electronic equipment, including computers and displays from the manufacturer. When Apple products are recycled with Apple, some parts are reused and other parts can be broken down and repurposed. Apple can achieve up to 90% reuse rate (by weight) of

OF

CARBON

FOOTPRINT Apple meets or exceeds all hazardous waste disposal requirements and keeps waste in the region where it was collected and does not dispose of hazardous waste in solid-waste landfills. Apple demands strict requirements with its contractors and enforces all safety and health laws and does not use prison labor.

the original product. Apple encourages recycling by supplying gift cards to customers who recycle their old computers. In addition if you want to recycle your old nonApple computer Apple will help you do that for only $30 and also help you recycle your Mac battery for free.

FACILITIES The Austin, Sacramento, and Cork facilities are powered 100% by renewable energy eliminating 19,200,000 kgs of CO2e emissions. This is achieved by high tech controls and monitoring devices, highefficiency equipment and continual innovation.

3%

OF

CARBON

FOOTPRINT

Apple offers public transportation incentives and up to 800 employees use their free biodiesel commuter coaches. This is estimated to eliminate the use of 1,559 cars and 10,292,000 kgs of CO2e emissions per year.

ENERGY

EFFICIENCY chip (used in the i-pad, i -touch and many others) is designed to deliver power while maximizing battery life. Mac operating systems are designed to balance tasks to keep a computer from over working and automatically enter sleep mode. It even regulates power between key strokes to save energy. Every computer that apple makes exceeds Energy Star specifications and has earned an EPEAT Gold rating.

The 3 keys to product energy efficiency is efficient power supply, components that require less power and power management software. Apple focuses on manipulating all three keys to ensure sustainable products. For example, the A4

GREENER

APPLE

Page 5

Where Should We Be In 2020?

100% RECYCLING RATE BY 2020

Apple currently calculates this recycling rate by adding the total weight they recycle in a year and then dividing that number by the total weight of the products they sold seven years earlier. Apple currently has a 70% recycling rate. This number will continue to grow if Apple continues to migrate its products to aluminum casings.
PRODUCTIONREDUCE CARBON FOOTPRINT GOALS FOR 2020

Currently 97% of Apples Carbon emissions come from their products. This included manufacturing, customer use, & even the emissions used to recycle their products. Thus the focus has to continue to be on the manufacturing of products. Apple needs reduce their 9.6 million tons of greenhouse gas emissions by 50% by 2020
TOXIC ELEMENT REMOVAL

Apple has been ahead of the curve with removing toxic substances such as arsenic, brominated flame retardants (BFRs), mercury, phthalates, and polyvinyl chloride (PVC) from the environment. To be completely successful, Apple needs to stay ahead of the curve and shout out successes from the rooftop. While Apple has completely removed BFRs from all its products there is still a need to completely remove PVC from ALL products.

GREENER

APPLE

Page 6

LONGER

LASTING

PRODUCTS

Once again Apple is the industry leader in this arena, but that doesnt mean things cant improve. Typical laptop batteries only have 200-300 batteries recharges. Apples Macbook Pro can be recharged 1000 times, which is head and shoulders above the competition. Apples goal for 2020 is to produce the first battery that can be recharged an unlimited amount of times. With Apples current capabilities they are well on their way of achieving this goal.
PUBLICIZE SUCCESS

importance of ecological and environmental conditions, and they glean most of their information from the web (79%). When it comes to the green movement, there are seemingly limitless opportunities for brands to engage with consumers on an interactive level in real time using digital media. In a survey, 64% of millennials 18 to 29 said they would be willing to pay more for a product if they knew some of their investment was going toward an environmental cause or an environmentally conscious company.

While Apple clearly has call outs on the website in regards to current sustainable efforts, there is still opportunity to do a better job of marketing success to customers. There are two large demographic groups, the baby boomers & their children, the millennial generation (18 29), that would love to hear the Apple products they are buying are also industry leaders when it comes to sustainability. Millennials are one of the most highly educated demographics when it comes to understanding the

Developed by:`