sustainable performance of apple
TRANSCRIPT
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