Introduction Climate Change Resources Smarter Chemistry Engagement and Advocacy Appendix 2023 Environmental Progress Report 77 Appendix A Greenhouse gas emissions We account for our carbon footprint by following internationally recognized standards, like the World Resources Institute (WRI) Greenhouse Gas (GHG) Protocol and ISO 14040/14044. 1 Improving the accuracy of our carbon Notes: footprint is an ongoing process — as we learn more, we refine our carbon models and adjust our climate roadmap. We also regularly revisit the boundary of our carbon footprint as our data sources improve and our business • For data on years prior to 2018, please reference past Environmental evolves. For example, in 2022, we expanded our corporate footprint to include work from home emissions, third-party cloud services, electricity transmission and distribution losses, and upstream impacts from our scope 1 fuel use. Progress Reports . • Totals might not add up due to rounding. 1 Apple’s carbon footprint boundary is aligned with the Greenhouse Gas Fiscal year (GHG) Protocol framework and includes emissions that are material and relevant to Apple, where data is available. Apple’s carbon footprint 2022 2021 2020 2019 2018 includes direct scope 1 emissions; indirect scope 2 emissions from Corporate emissions Gross emissions 324,100 166,380 334,430 573,730 586,170 purchased electricity, steam, heating, and cooling; and indirect scope 3 emissions from purchased goods and services, transportation and (metric tons CO 2 e) 2 Scope 1 55,200 55,200 47,430 52,730 57,440 distribution, business travel, employee commute, product use, and end of life. Natural gas, diesel, propane 39,700 40,070 39,340 40,910 42,840 2 Apple is carbon neutral for corporate emissions as of April 2020. Fleet vehicles 12,600 12,090 4,270 6,950 11,110 Beginning in fiscal year 2022, we’ve expanded our footprint boundary to include scope 3 emissions associated with work from home, third- Other emissions 3 2,900 3,040 3,830 4,870 3,490 party cloud services, electricity transmission and distribution losses, and upstream impacts from scope 1 fuels. Scope 2 (market-based) 4 3,000 2,780 0 0 8,730 3 Emis sions from R&D processes and refrigerant leaks. Electricity 0 0 0 0 8,730 4 W e estimate the life cycle emissions associated with our use of renewable electricity for our corporate facilities to be about Steam, heating, and cooling 5 3,000 2,780 0 0 0 60, 000 metric tons CO 2 e. We do not currently account for these emissions in our carbon footprint, due to the poor quality of this data. Scope 3 265,800 108,400 287,000 521,000 520,000 5 Beginning in fiscal y ear 2021, we’re accounting for scope 2 emissions from the purchase of district heating, chilled water, and steam. Business travel 113,500 22,850 153,000 326,000 337,000 6 Beginning in fiscal y ear 2020, we updated our methodology for Employee commute 6 134,200 85,570 134,000 195,000 183,000 calculating emissions from employee commute to reflect employees working from home during COVID-19. Upstream fuel 10,600 0 0 0 0 7 F or a detailed breakdown of carbon offset purchases applied Work from home (market-based) 7, 5 0 0 0 0 0 0 to our corporate footprint, see the carbon offsets table on the following page. Transmission and distribution loss (market-based) 0 N/A N/A N/A N/A 8 W e retired 167, 000 metric tons of carbon credits from the Chyulu Hills project in Kenya to maintain carbon neutrality for our corporate Third-party cloud (market-based) 0 0 0 0 0 emissions in fiscal year 2021. This project is certified to the VCS and CCB standards. Carbon removals 9 W e retired 70, 000 metrics tons of carbon credits — 53,000 from the Corporate carbon offsets 7 –324,100 –167,000 8 –70,000 9 0 0 Chyulu Hills project in Kenya and 17,000 from the Cispatá Mangrove project in Colombia. Product life Gross emissions (Scope 3) 20,280,000 23,020,000 22,260,000 24,460,000 24,550,000 10 Because we’re committed to accuracy and transparency, we regularly cycle emissions refine our product life cycle assessment model and sources of data. For Manufacturing (purchased goods and services) 13,400,000 16,200,000 16,100,000 18,900,000 18,500,000 example, last year we obtained more granular data summarizing in which (metric tons CO 2 e) 10 countries our products are sold and used, resulting in more granularity Product transportation (upstream and downstream) 1,900,000 1,750,000 1,800,000 1,400,000 1,300,000 possible for grid emission factors used in the carbon footprint of the Product use (use of sold products) 4,900,000 4,990,000 4,300,000 4,100,000 4,700,000 product use phase. The net result was an increase in our fiscal year 2021 carbon footprint. When using the same level of data granularity and End-of-life processing 80,000 80,000 60,000 60,000 50,000 model as fiscal year 2021, our product use carbon emissions in fiscal year 2021 would have been about 2. 5 percent lower. Carbon removals 11 F or fiscal year 2021, we retired credits from the Chyulu Hills project in Kenya and purchased carbon credits from two additional projects to Product carbon offsets 0 –500,000 11 0 0 0 offset a total of 500, 000 metric tons of direct emissions across our value chain. The first projec t , a REDD+ coastal conservation project Total gross scope 3 emissions (corporate and product) 20,550,000 23,128,400 22,547,000 24,980,000 25,070,000 in Guatemala, protects and conserves forests from deforestation and (metric tons CO 2 e) degradation. The second project aims to establish forests on about 46,000 hectares of barren land that isn’t otherwise in use across seven Total gross carbon footprint (without offsets) 20,600,000 23,200,000 22,600,000 25,100,000 25,200,000 counties in the Guizhou province of China. Both projects are certified (metric tons CO 2 e) 12 to the same high standards that we require for projects in the Restore Fund, including VCS and CCB standards. Total net carbon footprint (after applying offsets) 20,300,000 22,530,000 22,530,000 25,100,000 25,200,000 12 D ue to rounding, our gross and net carbon footprints do not always (metric tons CO 2 e) 12 equal the sum of the subtotals disclosed above.