Apple's clean energy drive draws more Asian suppliers

PALO ALTO, U.S. -- Apple now counts 175 suppliers that have committed to using 100% renewable energy to produce components and assemble for its products, the company announced Wednesday, as the global push for decarbonization sweeps the technology sector.

The U.S. tech giant aims to be carbon neutral across its entire supply chain and products by 2030. In addition to reducing the carbon footprint of its facilities, Apple has been urging business partners to switch to clean energy since 2015.

Roughly 110 suppliers had committed to using 100% renewable power as of March, including many leading Asian players like BYD, Hon Hai Precision Industry, Pegatron, SK Hynix, and Taiwan Semiconductor Manufacturing.

The expanded roster published Wednesday, which now accounts for almost 90% of Apple's total suppliers, include 11 Japanese additions, from Japan Display and Alps Alpine to aluminum maker UACJ, parts maker MinebeaMitsumi, electric wire maker Fujikura, and electronic connector maker Hirose.

Other notable additions include steelmaker Posco and battery makers Samsung SDI and LG Energy Solution from South Korea, as well as touch-screen maker TPK and circuit board producer Unimicron Technology from Taiwan. Infineon Technologies and Western Digital were among newcomers from outside Asia.

All companies that are involved in the final assembly of iPhones and Mac computers have committed to switching to 100% renewable energy, Apple said.

Apple's Sarah Chandler says suppliers are finding renewable energy to be more economical. (Photo courtesy of Apple)

Apple suppliers are increasingly expanding their use of renewable energy to cover products for other customers as well, Sarah Chandler, Apple's senior director for environment and supply chain innovation, told reporters.

Meanwhile, other suppliers worry that they could lose Apple's business if they move too slowly toward decarbonization.

"A lot of our suppliers are finding that renewable energy is more economically viable," Chandler said when asked about these concerns.

There is "not a big trade-off between the environment and economic bottom line," she said.

Apple's announcement comes days before the COP26 climate conference in the U.K. is set to begin. A major question there will be whether countries can set more ambitious decarbonization goals.

A growing number of countries are committing to carbon neutrality, but are often either vague when they intend to achieve it, or set goals that are three decades or more into the future.

Apple's goal of carbon neutrality by 2030 is 20 years ahead of the United Nations target of 2050.

"Ahead of COP26, we hope these actions from Apple will encourage governments around the world, as well as the business community, to drive progress towards protecting the planet we all share," Chandler said.