BRANDON SELLAM

Is Apple a sustainable company ?

Summary What is the meaning of sustainable development ? From sustainable development to sustainable performance… Apple profile What is a sustainable company ? Features of Sustainable performance of Apple Is Apple a sustainable company ? Some examples of Apple’s sustainability Advantages of sustainable performance for the company Limits of sustainability for the company Video Conclusion References

What is the meaning of sustainable development (1/2)

?

“According to the classical definition given by the United Nations World Commission on Environment and Development in 1987, development is sustainable if it “meets the needs of the present without compromising the ability of future generations to meet their own needs.”

Sustainable means equitable, ethical, responsible

Sustainability refers not only to environmental issues but also economic & social areas

What is the meaning of sustainable development (2/2)

?Objectives of sustainable development

Source : World Bank report, 2014

From sustainable development to sustainable performance… Sustainable development deals with

economic, social and environmental issues in macro level (regions, cities, countries…)

Sustainable performance refers to sustainability in the companies/enterprises at a more micro level

Macro-level Sustainable development

Sustainable performance Micro-level

Apple Profile

CEO : Tim Cook FOUNDERS: Steve Jobs, Ronald Wayne, Steve Wozniak Creations : April 1, 1976 Stock actions price: 110,30$ Market capitalisation > 700 billion $ Activities : design, manufacturing, and marketing of mobile

communication and media devices, personal computers, and portable digital music players, softwares & accessories

Net income 2014: 39.5 billion $ R&D expenses : 6.1 billion $ Staff : 92.600 Full-time equivalent (FTE)

Source : Annual report 2014, Apple – Form 10-K

What is a sustainable company ?

Transformation & impacts of the whole value chain of the company in a more sustainable way

Transparency Ethics Compliance to environmental, human

rights standards

Illustration of value chain

Raw materials procurement

Design & Manufacturing

Sales & Recycling

Features of Sustainable performance in Apple company

Environmental impacts in the whole value chain of the company

CO2 emissions from employees travel

Carbon footprint Energy savings for the customers Use of Renewable resources Recycling of materials Packaging Avoidance of restricted substances Streamlining resources for designing & producing better products

more innovative & efficient Education programs for employees of Apple facilities & employees of

its suppliers (≈ 200 main suppliers in the world) Improvement of the security in the facilities

Is Apple a sustainable company ?

APPLE

More innovative products / energy

savings

Reduction of packaging volume

of the iPhone 6

100% of data centers use

renewable energy

Decline in carbon emissions / 7%

Source : Environmental Responsibility Report, Apple company, 2015

Somes examples of Apple’s sustainability (1/2)

Training of 2.3 million of workers about their rights in 2014

Clean Water Program : to help suppliers to process water and recycling it

Apple Supplier EHS Academy : training of best practices in terms of environment, safety & health

92% of compliance regarding the norm of 60 working hours per week maximum

Source : Apple Supplier Responsibility 2015 Progress report

Somes examples of Apple’s sustainability (2/2)

Environemental report of the Iphone 6s Plus:1. 95 kg CO2e – Total greenhouse gaz emition : 84 % to production, 11 % to

customer use, 4% to transport, 1% to recycling iPhone 6s Plus is designed with the following features to reduce environmental impact: Arsenic-free display glass , Mercury-free LED-backlit display , Brominated flame retardant–free, PVC-free, Beryllium-free, Speaker enclosures made with 30 percent post-consumer recycled plastic & Power adapter that outperforms strictest global energy efficiency standards. 2.

MATERIAL USE for iphone 6s Plus: 43g of battery , 40g of display, 35 g of Aluminium, 28 g of stainless steel, 23g glass, 12g circuit Bords, 4 g of plastic & 4g from other’s material3.

Restricted substence: Arsenic-free display glass, mercury-free LED-Backlist display, BFR-free, PVC-free, Beryllium-free;Apple offers and participates in various product take-back and recycling programs in 99 % of the regions where Apple products are sold.

Advantages of sustainable performance

Reputation/ Brand image

Growth of market shares

Saving costs in the long term

Products/services more innovative technologically

Limits of sustainable performanceRisks in terms of Greenwashing / Exaggerating

Communication focused on environmental issues

Return on investment complex to evaluate

Higher prices of products for customers

Working conditions of workers in China should be improved

Conclusion

Model of sustainability

Take into account social

change

Transparency / environmental

reports

Education of employees of

suppliers throughout the world

Limits of the model

Marketing/ Greenwashing

?

Working conditions in

China / suppliers

Recycling of all the

products is possible ?

Apple

Key questions :

• How to build/create a culture of sustainability ?• Does sustainability lead to Performance in companies or chaos ? (reference to Volkswagen

crisis)

References

Environmental Responsibility Report, 2015 Progress report, Apple Company

Supplier Responsibility 2015 Progress report, Apple Company

Annual report 2014, Apple – Form 10-K An introduction to Sustainable Development,

World Bank, 2004 Is Apple the model of sustainable company ?,

Bloomberg Environemental report of the Iphone 6s Plus