Environmental Progress Report.

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EnvironmentalProgressReport.Covering fiscal year 2019

IntroductionClimate ChangeResourcesSmarter Letter from Lisa JacksonOur responsibilityOur environmental strategyOur environmental visionClimate Change101416182425Our approachLow-carbon designEnergy efficiencyRenewable electricityDirect emissions abatementCarbon removalResources30314448Our approachMaterialsWater stewardshipZero waste to landfillSmarter Chemistry53545658Our approachMapping and pendix A: Apple’s environmental dataAppendix B: Facilities renewable energy supplementAppendix C: Assurance and review statementsAppendix D: Environmental health and safety policy statementAppendix E: ISO 14001 certificationCover: An Apple-protected forest in Maine, United States.Image Credit: EcoPhotography2020 Environmental Progress Reportapple.com/environment

IntroductionClimate ChangeResourcesSmarter ChemistryAppendix3Our year in reviewThe responsibility to protect our shared planetintersects every aspect of our lives. This year hasoffered humbling reminders that nature is biggerand more powerful than any one of us—andthat our ability to solve worldwide challengesdepends on historic innovation and collaboration.That’s why Apple has dedicated our resources—and our best thinking—to consideringthe environment in everything we do: the energy that powers our operations, thematerials in our devices, the companies we do business with, and the health and safetyof those who make and use our products.We’ve led our industry in reducing our environmental footprint for years, but we knowthere is more to do. So we’ve set a groundbreaking new goal to further reduce ourimpact on the planet we all share: By 2030, we’re committing to total carbonneutrality. We are already carbon neutral for our corporate emissions, includingcorporate travel—resulting from our use of 100 percent renewable electricity for ourfacilities and investing in high-quality projects that protect and restore forests, wetlands,and grasslands. And we’re well on our way in our supply chain. But we’re going furtherto cover our entire, end‑to‑end footprint. All the way down to the shipping that movesour products around the world, and the energy used to power our customers’ devices.But our journey is incomplete if the communities most impacted by environmentalharms do not have a voice in our mission to address them. That’s why a key componentof our roadmap is an all-new Impact Accelerator for minority-owned businesses—sothat our investments in renewable energy or carbon capture can help fight systemicbarriers in our economy. That investment is part of our 100 million Racial Equity andJustice Initiative to expand opportunities for Black and Brown people in the areas ofeducation, economic equality, and criminal justice reform.Lisa JacksonVice President, Environment,Policy & Social InitiativesThis initiative will support not just our carbon goal but all of our ongoing environmentalambitions. Like our visionary goal of closing the loop on our supply chain and to oneday no longer mine materials from the earth. Many of our products now contain higherpercentages of recycled material than ever before, but we won’t be content until thatnumber hits 100 percent for all of our devices. Achieving this critical goal will also helpus to further reduce our carbon footprint, and we’re dedicating Apple’s unmatchedinnovative capacity to get there.Perhaps most importantly, we are channeling our learnings and influence to bringothers along. We’re committed to supporting smart policies around the world thatbetter protect the planet and make transitioning to a low-carbon future more efficient.And we’ve helped dozens of Apple suppliers transition to using clean energy. They’vebuilt a powerful new competitive advantage that will set them apart in the years ahead.And those who are holding out should know that the clock is ticking. Our commitmentto the planet means working with partners who share in our mission.We hope the details in this Environmental Progress Report offer a model for others tocopy. We are proud of what we’ve accomplished, but not so proud as to believe thatthese efforts alone are enough. In the urgent years ahead, we will all need to thinkdifferently and act urgently in order to build the safer, healthier, more equitable futurewe all know is possible. We’re committed to doing our part.2020 Environmental Progress Reportapple.com/environment

IntroductionClimate ChangeResourcesSmarter sDesign 4.7B100%100%We continue to use 100 percentrenewable electricity at Apple stores,data centers, and offices across44 countries.The Taptic Engine in iPhone 11,iPhone 11 Pro, and iPhone 11 Pro Maxis built from 100 percent recycledrare earth elements—a first for Appleand for any smartphone.135%70 40%We’ve reduced Apple’s overallcarbon footprint by nearly 35 percentsince our emissions peaked in 2015.And we’ve now committed to carbonneutrality by 2030.More than 70 suppliers have committedto 100 percent renewable electricityfor Apple production.The 13-inch MacBook Air withRetina display, introduced in July2019, contains over 40 percentrecycled content.UN ClimateNeutral NowCDP AA For our work to reduce carbonemissions, we were recognized forthe sixth consecutive year in CDP’sClimate Change “A List.”Apple was the only retailer to receivethe top rating in the “Mind the Store”campaign for our work to eliminateharmful chemicals in productsand packaging.green bondsApple remains the largest corporateissuer of green bonds, underscoringour strong commitment to theenvironment.reductionof emissionsAwardThe United Nations recognizedour achievements in reducingcarbon emissions.2020 Environmental Progress Reportrenewableelectricitysuppliers committedto clean energyratingrecycled rare earthelements in iPhonerecycled contentin MacBook AirMind the Storeapple.com/environment

IntroductionClimate ChangeResourcesSmarter ChemistryAppendix5OurresponsibilityApple has a history of channelinginnovation to address global challenges.That task has never been more urgentthan now, with the existing threats ofclimate change and environmentaldegradation that our planet faces. Webelieve we can make the world’s mosticonic products—without depleting theearth’s resources. That’s why we takeresponsibility for the impact of our entirevalue chain, including the complete lifecycle of our products, as well as ourown facilities. This includes supportingthe environmental innovation neededto help us meet our goals, and creatingeconomic opportunities for minorityowned businesses and institutions thathave been historically disadvantaged.By doing so, we hope to build pathwaysfor others to reduce their footprint whileaddressing environmental impacts thatdisproportionately negatively affectcommunities of color.Our valuechainProduct life te facilitiesEnd-of-liferecoveryProduct finalassemblyAppleofficesProductuse2020 Environmental Progress ReportApple vironment

IntroductionClimate ChangeResourcesSmarter ChemistryAppendix6Our environmentalstrategyWe focus our environmental work in areas where we believe we can makethe biggest difference. Our strategy is informed by comprehensive dataand input from external stakeholders. What we learn drives our mission:to make products without taking from the earth. Achieving this ambitionrequires focus and innovation in three key interconnected areas:Climate changeResourcesSmarter chemistryWe’ve set a goal to becomecarbon neutral across our entirefootprint by 2030. We will getthere by reducing our emissionsby 75 percent compared to 2015,and then investing in carbon removalsolutions for the remaining emissions.We aim to make products andpackaging using only recycledor renewable materials. At thesame time, we’re committed tostewarding water resources andsending zero waste to landfill.We maintain rigorous controlsto ensure our products are safefor anyone who assembles,uses, or recycles them.Low-carbon designMaterialsMappingand engagementEnergy efficiencyWater stewardshipAssessmentRenewable electricityZero waste to landfillInnovationDirect emissionsabatementCarbon removal2020 Environmental Progress Reportapple.com/environment

IntroductionClimate ChangeResourcesSmarter ChemistryAppendix7Our environmentalvisionOur ambitious vision across our three focus areas outlineswhere we are headed and what we intend to achieve.Climate changeResourcesSmarter chemistryWe are proud to have reached100 percent renewable electricity forApple facilities, and carbon neutralityfor Apple’s corporate emissions,including business travel and employeecommute. We are embarking on a newgoal to become carbon neutral forour entire carbon footprint by 2030.We’ve progressed significantlytoward making products andpackaging using only recycledor renewable materials;stewarding water resources;and sending zero waste to landfill.For years, we’ve led the industry ineliminating potentially harmful chemicalsfrom our products. We will continueto drive Smarter Chemistry to promotehuman and environmental health throughleadership, transparency, and innovation.To get there, we will:Our ambition is to:More specifically, we will:Transition our entire manufacturingsupply chain to 100 percentrenewable electricity by 2030.Use only recycled andrenewable materials inour products and packaging.Drive 100 percent transparencyof chemical use in our supplychain and products.Reduce emissions by 75 percentfrom 2015 levels by 2030.Eliminate plastics inour packaging by 2025.Minimize exposure tochemicals that could be harmful tohuman health or the environment.Balance the remainingemissions with high-qualitycarbon removal projects.Minimize use offreshwater resources inwater-stressed locations.Integrate Smarter Chemistryinnovation into the way we buildand design our products.Eliminate waste sent to landfillfrom our corporate facilitiesand our suppliers.2020 Environmental Progress Reportapple.com/environment

IntroductionClimate ChangeResourcesSmarter ChemistryAppendix8ClimateChange.Apple launched a first‑of‑its‑kind China Clean Energy Fund to connectsuppliers with renewable electricity projects. Our first fund investmentsincluded this 48-megawatt wind farm in Hunan province.2020 Environmental Progress Reportapple.com/environment

IntroductionClimate ChangeResourcesSmarter ChemistryAppendix9HighlightsWe’ve achieved some significant milestonesin our work to reduce emissions and accelerateclimate solutions, through years of investmentsin emissions reduction programs.Our 2019 comprehensive carbonfootprint has shown a 35 percentabsolute reduction since it peakedin 2015, even as product saleshave increased. We’ve done thisby focusing on energy efficiency,low‑carbon design, and transitioningto 100 percent renewable electricityat all of our facilities worldwide—andworking with our suppliers toward thesame goal. To date, over 70 suppliershave committed to 100 percentclean energy for Apple production.35%And we’ve been focused on reducingthe carbon footprint of our products bytransitioning to recycled and renewablematerials in key components.We know we all have to do more.Mitigating climate change is ofvital importance. That’s why we’reaccelerating and expanding ourwork and announcing that by 2030we will reach carbon neutrality forour entire footprint. This includesemissions in our supply chain andacross the product life cycle,from raw material extraction andprocessing, to manufacturing, andthrough to product use and end‑of‑lifematerial recovery. We are also nowcarbon neutral for our own operations.There’s never been more urgencyto act, given the devastating threatsof climate change, so we are sharingour progress and ambitions withthe world to ask others to join usin eliminating carbon emissions.Progresstoward zero100%Renewable electricityat corporate facilities70 We reduced our comprehensivecarbon footprint by 35 percentsince its peak in 2015.We continued to source 100 percentrenewable electricity at all offices,retail stores, and data centers,across 44 countries.Over 70 suppliers have committedto 100 percent renewable electricityfor Apple production, of which2.7 gigawatts is operational today.4.3M73%Productenergy useCarbon neutraloperationsBy increasing efficiency and usingrecycled and other low-carbonaluminum in our products, we havedecreased our carbon footprint by4.3 million metric tons in 2019.In 11 years, we’ve reduced averageproduct energy use by 73 percent.Beginning April 2020, Apple iscarbon neutral for our corporateemissions, investing in high-qualityprojects that protect and restoreforests, wetlands, and grasslands.Low-carbondesign2020 Environmental Progress ReportSupply chainrenewable energyapple.com/environment

IntroductionClimate ChangeResourcesSmarter ChemistryAppendix10OurapproachClimate change is a definingissue of our time, and thescience clearly shows thatwe are at a pivotal moment.From shifting weatherpatterns that threaten foodproduction, to widespreadwildfires that devastateentire communities andecosystems, the impacts ofclimate change are global inscope and unprecedented inscale. Without comprehensiveand immediate action today,adapting to these impactsin the future will be moredifficult and costly.As a global business, we have aresponsibility to our customers,employees, shareholders, and the worldat large, to take strong, decisive action onclimate change. That’s why we recentlyannounced our goal to be carbon neutralby 2030. This is 20 years ahead of therecommendations by the IntergovernmentalPanel on Climate Change, which call forcarbon neutrality as a planet by 2050.To meet our goal, we’ve created aclimate roadmap. By working with teamsacross the company, we’ve identified abroad portfolio of projects to reduce ouremissions, which we will regularly update.We are leveraging Apple’s USD 2.2 billiongreen bond issued in November 2019to help meet this climate goal.Our philosophy for achieving carbonneutrality follows these tenets:Take complete accountability:We take responsibility not only for ourdirect operations, but for the entire lifecycle of our products. The responsibilityextends from the production of rawmaterials through product manufacturingand shipping, to the energy used to powerour facilities and our customers’ devices,and recover materials at the end oftheir useful life.Set ambitious targets:We plan to reduce emissions by75 percent by 2030, compared to2015 levels, through product designand engineering, energy efficiencyand renewable energy, and directemissions abatement. Then for theremaining emissions, we will investin carbon removal, like natural climatesolutions that protect and restoreecosystems and play a vital role inremoving carbon from our atmosphere.Match solutions to sources:We will address direct emissions throughenergy efficiency, emissions abatement,fuel switching, and carbon removal.And we will address emissions fromelectricity generation with renewableelectricity. In this way, the solutions wecreate will match their sources, which,when scaled, is necessary to trulydecarbonize our economy.Make no compromises:We don’t believe there is an inherenttrade-off between the environment andwhat is good for business. We intend tomeet our carbon reduction goals withoutcompromising on things like our designand performance, the durability of ourproducts, or our bottom line. We believethat our carbon goal will challenge us toimprove on all aspects of our business.Pursue all solutions:A successful approach means workingacross multiple solutions. We mustconcurrently deploy all the tools atour disposal, scaling proven solutionsand enabling new ones.Be open:We are committed to transparency aboutour climate strategy, progress towardour reduction goal, as well as climaterisk–related financial information. To thisend, we report each year to CDP, a globaldisclosure nonprofit, which has aligned tothe Taskforce on Climate-related FinancialDisclosures (TCFD) recommendations.In addition, we’re currently undertaking aclimate-scenario analysis that will help useven better understand the physical andtransitional effects of climate change.Work together:The best solutions are often foundthrough collaboration. We plan to pursuepartnerships and identify projectsand financing models that help scaleefficiency, renewables, and carbonremoval beyond our footprint.Our 10-year climate roadmap will leverage five pillars to decarbonize Apple’s carbon eelectricityDirect emissionsabatementCarbonremovalWe will design products andmanufacturing processes to beless carbon-intensive.We will increase energy efficiencyat our corporate facilities andin our supply chain.We will maintain our use of 100 percentrenewable electricity for our corporatefacilities and transition our entire supplychain to 100 percent clean, renewablesources of electricity.We will avoid direct greenhouse gasemissions through technologicalsolutions or switching to non‑fossil‑based low‑carbon fuels.Working in parallel with ouremissions reduction efforts, we willscale up investments in carbon removalprojects, including nature‑basedsolutions that protect and restoreecosystems around the world.2020 Environmental Progress Reportapple.com/environment

IntroductionClimate ChangeResourcesSmarter ChemistryAppendix11Climate change is realand we all share aresponsibility to fight it.We will never waver,because we know thatfuture generationsdepend on us.”Tim Cook, CEO2020 Environmental Progress Reportapple.com/environment

Climate ChangeIntroductionResourcesSmarter ChemistryAppendix12Apple’s 2019carbon footprintUnderstanding our carbon footprint is essential to taking strong action to eliminate it.That’s why we model it so comprehensively, taking responsibility for emissions acrossour entire value chain, including Apple’s corporate operations, as well as across theproduct life cycle, from manufacturing (including material sourcing), use, transportation,and end-of-life material recovery. And each year, we use the results to adjust ourclimate roadmap, which lays out our plan to get to carbon neutral by 2030.Scope 1Scope 2Scope 376%Product ns ofCO2e14% 1%Direct emissions0%Emissionsfrom electricity3%Business travel &employee commute 1%5%Product useProduct transportMaterial recoveryCorporate emissionsProduct life cycle emissionsThe WRI Greenhouse Gas Protocol defines the methodology for calculating carbon emissions.Scope 1 emissions are those greenhouse gasesresulting from fuel combustion from sources we ownor operate—like vehicles or natural gas for heating.2020 Environmental Progress ReportScope 2 emissions refer to those resulting from useof electricity. Renewable energy generates minimalScope 2 emissions, whereas burning coal, oil, or naturalgas to produce electricity releases carbon dioxideand other greenhouse gases into the atmosphere.Scope 3 emissions refer to all other indirect emissionsthat occur in a company’s value chain, including upstreamand downstream activities.apple.com/environment

IntroductionClimate ChangeResourcesSmarter ChemistryAppendix13Our past and futurecarbon footprintIn fiscal year 2019, we reduced our comprehensive carbon footprint for the fourthconsecutive year—down 35 percent compared to 2015, when Apple’s carbon emissionspeaked, even as net revenue increased by 11 percent over that same period. In the pastyear, we avoided over 10 million metric tons from our emissions reduction initiatives—likeour Supplier Clean Energy Program, which lowered our footprint by 4.4 million metric tons.We also made several productdesign changes over the past fiveyears, like sourcing aluminum madewith hydroelectricity and increasedrecycled content, as well as improvingefficiency—which together

the environment in everything we do: the energy that powers our operations, the materials in our devices, the companies we do business with, and the health and safety of those who make and use our products. We’ve led our industry in reducing our environmental footprint for years, but we know there is more to do.

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