The first step was the ratification of the Kyoto Protocol in 1997, which reduced carbon emissions around the world. This act was put into effect in 2005 but it did not have any real impact until 2007, when the media called out Steve Jobs for a lack of transparency surrounding Apple’s actions regarding the environment and overall public indifference to environmental concerns. After these scandals, Apple revealed details about its efforts to remove toxic materials from its products. Prior to this, climate-friendly actions were not discussed in a business context, but rather leveraged as marketing strategies in the form of symbolic ‘green actions’, such as on-site paper recycling or small-scale tree planting. Progress was slow but in 2012, after more pressure from the press, Apple released its first environmental footprint report. Shortly after, Apple representatives also stated in an interview that, “Apple is committed to pursuing energy-efficient growth by increasing our renewable energy participation to match the growing needs of our data center.” This was finally concrete proof of change towards eco-friendly business. Following these events, Tim Cook hired Lisa Jackson, a former Administrator of the U.S. Environmental Protection Agency (EPA) under President Obama, to oversee Apple’s environmental policies and social initiatives. She quickly earned the title of VP and by 2015, Apple had become a lot more cautious of its products’ production effects on global warming and pollution in general. Finally, in July 2020, Tim Cook posted on Twitter his goals in regard to Apple’s sustainability. He announced that “by 2030, Apple’s entire business will be carbon neutral — from supply chain to the power you use in every device we make.” He also added that “the planet we share can’t wait, and we want to be a ripple in the pond that creates a much larger change.” Although it did take some time, Apple has made immense progress toward this cause. It also set the example and today, nearly all of the world’s top 250 companies (G250) publish yearly sustainability reports. Stakeholders reinforce this practice by demanding consistent and comparable data that most often comes in the form of Global Reporting Initiatives (GRI).
Apple’s 2023 environmental progress report contains reflections from Lisa Jackson about how Apple’s journey is successfully transforming its business to become carbon neutral. She specifically highlights, “that the choice between a thriving business and a thriving planet is a false one,” which is backed up by Apple having reduced its emissions by 45% since 2015 while also reaching more customers than ever before. However, to achieve its 2030 plan, Apple must reduce its emissions by 75% compared with its emissions from 2015, as well as balance the residual emissions with high-quality carbon removal. Apple’s innovations can be broken down into three pillars:
(1) Pushing for better policies. Apple called on its suppliers to accelerate their work toward reducing carbon emissions and has enrolled more than 250 of its existing suppliers (accounting for over 85% of its direct manufacturing force) in its Supplier Clean Energy Program.
(2) Investing in new innovations for products and packaging. The increase in usage of recycled materials has led, for example, to the iPhone 14 using 100% recyclable gold in a part of all cameras instead of other materials harmful to the environment. Additionally, 70% of iPhone 14 packaging is made with recycled wood fiber. Product designs are also being adapted to use less energy. For instance, “the new Mac mini has a nearly 50% percent reduction in carbon footprint compared with previous generations.” Apple has also taken a big step towards leveraging ocean transport for its products which, “reduces transportation-related emissions by 95%” compared to air transportation.
(3) Engage in new partnerships. For example, Apple has created the Restore Fund, which contributes to nature-based solutions that aim to restore our environment — forests, wetlands, and grasslands. Equity remains a central focus of Apple’s mission; with their program Impact Accelerator, they are able to invest in the next generations and create innovative and diverse entrepreneurs. This program also brings renewable energy projects to communities all over the world.
Apple is paving the way for other corporations to follow suit in their sustainability efforts and is advocating for strong climate public policies, as well as government regulatory actions. Lisa Jackson stated throughout her report: “we don’t see sustainability as a constraint on our business. We see it as a source of innovation and a way to future-proof our business.” As the world of business moves towards eco-friendly products, it is no wonder why business schools are embracing the importance of global environmental sustainability when training our future leaders.