Apple Plans To Go Carbon Neutral Across Supply Chain, Products Within A Decade

Apple Inc (NASDAQ: AAPL) is planning to turn carbon neutral across the entire spectrum of its business, manufacturing supply chain, and product life cycle by 2030, it announced Tuesday.

What Happened

The Tim Cook-led company says it's already carbon neutral for its corporate operations worldwide.

The iPhone maker now plans to cut emissions by 75% within a decade and develop “innovative carbon removal solutions” for the remaining 25% of its comprehensive footprint.

Apple will also establish an impact accelerator, with a focus on minority-owned businesses, to bring about "positive outcomes in its supply chain and in communities that are disproportionately affected by environmental hazards."

The Cupertino-based company said, along with the private equity fund US-China Green Fund, it would invest $100 million in accelerated energy efficiency projects for its suppliers.

Why It Matters 

Apple would achieve net-zero climate impact for every device sold by 2030, if the consumer electronics giant lives up to the commitment.

Microsoft Corporation (NASDAQ: MSFT) previously committed to becoming "carbon negative" by 2030, that is, it would aim to cut more carbon from the environment than it emits.

Amazon.com Inc. (NASDAQ: AMZN) has pledged to be carbon neutral by 2040.

Apple announced April last year that its chip supplier Taiwan Semiconductor Mfg. Co. Ltd. (NYSE: TSM) and iPhone manufacturing partner Hon Hai Precision Industry Co. Ltd. (OTC: HNHPF), better known a Foxconn, had committed to using renewable energy, CNBC reported.

Price Action

Apple shares closed about 1.4% lower at $388 on Tuesday and traded 0.18% higher in the after-hours session.