Introduction Climate Change Resources Smarter Chemistry Engagement and Advocacy Appendix 2023 Environmental Progress Report 22 Supply chain clean energy progress Transitioning our suppliers As of March 2023, over 250 suppliers making up How suppliers are responding Renewable electricity operational and committed in gigawatts (GW) to renewable electricity over 85 percent of Apple’s direct spend for materials, Long-standing energy policies and infrastructure that manufacturing, and assembly of our products worldwide incentivize the use of fuels like coal can make it difficult The electricity that our manufacturing suppliers use have committed to using renewable electricity for to bring new renewable energy online in some regions, represents the largest single source of carbon emissions their Apple production. In total, the Supplier Clean prompting some of our suppliers to rely on less impactful Operational throughout our manufacturing supply chain. That’s why Energy Program now has over 20 gigawatts of clean solutions, like one-time purchases of energy attribute Committed In the past two years, our efforts to facilitate the transition of our entire supply energy commitments, of which nearly two-thirds are certificates from existing renewable energy projects. together with our suppliers, chain to 100 percent renewable electricity are essential already operational. These options represent an annual cost for buyers FY16 we've more than tripled to reaching our 2030 goal of carbon neutrality. And the and offer no opportunity for cost savings or a return on benefits extend beyond Apple. Suppliers are able to In 2022, the 13.7 gigawatts of renewable energy investment. To overcome these challenges, suppliers are the amount of renewable implement best practices in advocating for and procuring procured by suppliers and online in Apple’s supply chain leveraging new purchasing methods, creating renewable electricity online in our renewable energy across all their operations and to generated 23. 7 m illion megawatt-hours of clean energy, energy businesses, and even participating in some of the FY17 supply chain. share them with their own partners. At the same time, avoiding 17. 4 m illion metric tons of carbon emissions — world’s largest and most innovative renewable energy transitioning to 100 percent renewable electricity presents a 23 percent increase over 2021. 23 Appendix C includes deals. Suppliers are also adapting to changing renewable challenges: technical and regulatory barriers, need for more information about which suppliers have joined Apple energy markets by finding new solutions, including first- FY18 capital investment, and lack of awareness about where to in transitioning to 100 percent renewable electricity. of-their-kind procurement structures in specific regions find and access high-quality and cost-effective solutions. that include more corporate procurement options. In many cases, our suppliers are leading the way with FY19 Our Supplier Clean Energy Program helps enable the efforts they’re undertaking. We work closely with our In China, this includes the Green Power Trading Platform suppliers’ transition to clean, renewable electricity through suppliers to identify innovative methods of creating and and cross-provincial power purchasing agreements that policy advocacy, providing information and access to accessing cost-effective renewable energy. And we work have provided suppliers with more options. South Korea renewable energy procurement options, and creating together to break down barriers by advocating for clean has expanded its options for green power, including FY20 engagement opportunities with renewable energy energy–friendly policies. power purchase agreements and the ability to purchase experts. To cover emissions from suppliers that we don’t renewable energy credits. Japan has also introduced new contract with directly, we plan on investing in additional renewable energy options, including power purchase renewable electricity projects. To date, we’ve directly agreements and price-competitive nonfossil credits that FY21 invested in nearly 500 m egawatts of solar and wind have the potential to scale access to renewable energy projects in China and Japan. across the market. While we’ve seen progress in key markets, we continue to advocate for policies that enable FY22 renewable energy to compete fairly with fossil fuels, opening more avenues for our suppliers to make the transition (see page 29 ). Gigawatts 4 8 12 16 20