in the procurement and product development cycles. Since fiscal year 2020, 9 percent of prospective suppliers evaluated for Code- related risks have been prevented from entering our supply chain for being unable or unwilling to meet our Code and Standards. Once new suppliers are awarded Apple business, we begin the process of helping them quickly get up to speed on our requirements through our supplier onboarding process. In 2021, we expanded our onboarding process to engage new suppliers at an even earlier stage in their working relationship with Apple. We also extend our support to help prospective suppliers correct compliance issues found during the procurement process — even when the supplier is not awarded Apple’s business — at no cost to the participating companies. Since 2020, 68 percent of companies that were not awarded Apple business elected to join this voluntary program, helping to protect people and the planet beyond the reach of our business and supply chain. Supplier engagement and accountability We take a broad, comprehensive approach to engaging with our suppliers to confirm that our standards are met. One of the tools that we employ are assessments. Assessments, also known as audits, are one of several methods we use to measure compliance with our requirements. These independent, third-party assessments, which take place onsite at supplier facilities, provide a snapshot of a supplier’s performance. However, when combined with regular engagement with supplier teams, mandated reporting, and listening directly to hundreds of thousands of supplier employees about their workplace experiences, our rigorous supplier assessments provide a clear measure of their performance in upholding our Code and Standards. In the 2021 reporting period, 1177 assessments were conducted in 52 countries. This included 886 Code of Conduct assessments and 291 smelter and refiner assessments. 20 Since 2007, Apple-managed assessments have covered 94 percent of our direct manufacturing spend. The Apple Supply Chain 3 million+ people Thousands of businesses and facilities 52 countries Our People and Environment in Our Supply Chain Report (page 99) provides a detailed overview of progress in our supply chain, including efforts to identify, mitigate, prevent, and remedy human rights risks as outlined by the Business and Human Rights Due Diligence process set forth in the UNGPs. We work closely with many experts across Apple — from product and services designers to facility managers — to evaluate and update our Code and Standards annually to address emerging risks, incorporate new legal requirements and industry best practices, and reflect the needs of supplier employees in a dynamic operating environment. We engage with a range of stakeholders, including rights- holders, civil society organizations, academic experts, and program partners, to ensure that our Code and Standards reflect current internationally recognized labor, human rights, health and safety, and environmental standards. Upholding our values from the start We work across our business to implement our standards from the earliest stages of product design and development — from the suppliers we choose to work with, to the materials in our products, to the processes and equipment we use to make them. We take a comprehensive approach to identifying and mitigating risks early Design & engineering Logistics Primary materials Final assembly Retail stores Smelter & refiner Components Services Services Recycling A global network of people and businesses working together to build the best products in the world. Appendix Governance Communities Suppliers Customers Our People Environment Introduction Apple’s 2022 ESG Report 38