Introduction Climate Change Resources Smarter Chemistry Engagement and Advocacy Appendix 2023 Environmental Progress Report 95 Appendix C Supplier Clean Energy Program supplement The Supplier Clean Energy Program is integral to Apple’s Apple’s clean energy standards goal of reaching carbon neutrality by 2030. We’re focused We help our suppliers select projects with the greatest on working with our suppliers to help them increase potential for impact and with a clear carbon, ecological, Supplier energy efficiency and clean energy achievements energy efficiency at their facilities and transitioning and social benefit, and we consider the life cycle suppliers to clean, renewable electricity. These efforts are emissions associated with current and emerging clean helping reduce product-related carbon emissions, create energy technologies. In most cases, wind and solar 2020 a more resilient supply chain, and contribute to healthier solutions meet our criteria. For some energy solutions, 2015 communities — while offering a model for others to follow. More than 100 suppliers such as biomass and hydroelectric generation, we Launch of the Supplier Clean committed to 100 percent We’re proud of the progress our suppliers have made. review individual projects so that they deliver positive Energy Program and Supplier renewable electricity for impact while minimizing harm. We also uphold stringent Energy Efficiency Program 2018 Apple production 2022 As of March 2023, over 250 m anufacturing partners in assurance standards so that all clean energy can be Launch of the China Clean Energy All Apple products’ final Apple called on its 28 countries have committed to 100 percent renewable verified through third-party assessment. 2 Fund , which enables Apple and assembly sites committed global supply chain to electricity for Apple production (see below for the our suppliers to invest in more than to 100 percent renewable decarbonize by 2030 suppliers participating). Additionally, Apple itself has 1 gigawatt of renewable energy in China electricity for Apple production directly invested in nearly 500 m egawatts of renewable We want to be a driving force for the development of electricity projects to cover a portion of upstream new projects and help overcome barriers to bring new emissions. The Supplier Clean Energy Program now renewable electricity online. With the rapidly changing has over 20 gigawatts of clean energy commitments, policy dynamics in some of our key countries, we of which nearly two-thirds are operational. In 2022, the continuously evolve our framework both to comply with 13.7 gigawatts of renewable energy online in Apple’s local laws and regulations and to yield the most positive supply chain generated 23. 7 m illion megawatt-hours of and meaningful energy transformation. clean energy, avoiding 17. 4 m illion metric tons of carbon emissions — a 23 percent increase over 2021. 1 2017 2021 Launch of the Supplier Clean 214 suppliers across Energy Portal 26 countries committed to 100 Initial Apple investment toward the 2019 percent renewable electricity 2023 development of 500 megawatts of for Apple production solar and wind projects to address Key supplier commitments reached Over 250 suppliers committed to upstream emissions in Apple’s in major supply chain countries 100 percent renewable electricity supply chain First in-person training hosted by for Apple production, corresponding Apple for over 30 suppliers in China to over 80 percent of Apple’s direct Supplier Code of Conduct requires manufacturing spend suppliers to maintain an inventory of air emissions, including greenhouse gases 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 m illion megawatt-hours and avoiding 14. 2 m illion 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 .