At the beginning of the report, we asked whether
or not Apple uses the GRI framework to share its sustainable practices with its
stakeholders. While Analyzing Apple’s ESG report we discovered that the
company does use the GRI framework to share some information about its
sustainability practices; however, Apple only focuses on showing positive
outcomes of its operations and totally fails to share its negative outcomes.
Moreover, Apple also fails to share its information in a way that encourages stakeholders’
engagement. First, Apple’s ESG report is lengthy and mainly in text format.
Moreover, the report is missing graphs or images to make information more
accessible and comprehensive for stakeholders which can discourage readers from
fully reading the whole report. Furthermore, the company does not share accurate information
in its report as the data shared are estimates calculated by Apple itself and do
not provide detailed data to better understand Apple and its sustainable
strategy. Finally, Apple’s ESG report is a recollection of forward-looking statements,
and the company has stated that it is not in any obligation to update or execute
those strategies.
We also asked whether
or not Apple uses the triple bottom line to be a profitable company. Apple,
with a net worth of $3 trillion, has already demonstrated that it is one of the
most profitable companies in the United States. Moreover, Apple’s revenue,
which was $57 billion in 2020, has kept growing for the past 5 years at an average
growth of 6.2%. Nevertheless, does Apple also implements sustainable practices
for its products, planet, and people? We have created a table that demonstrates
that the company has created sustainable practices in regard to its products, employees,
and the environment. For example, Apple has refurbished 10.4 million devices in
2020; nevertheless, in 2018 the company generated 36.5 million tons of waste that
ended up in landfills. Furthermore, that number has been increasing for the
past ten years. Besides, Apple has created sustainable practices that protect
the environment. For example, the company has stated in its ESG report that it
wanted to be carbon-neutral in stores and corporate facilities; nevertheless,
the company does not have into consideration its supply chain manufacturers
when does those claims as Apple does not tend to think of its supply chain as an
integrated part of the company. Furthermore, Apple’s ESG report only states forward-looking
statements, and although the company was able to decrease its carbon impact by
32% in 2021, in any way it was completely carbon neutral in 2020. Finally,
Apple has also created programs to increase the working conditions of all its
employees including those working on its supply chain. Nevertheless, because
Apple has only implemented those supplier programs for its first-tier suppliers,
it is calculated that only 20% of Apple’s suppliers truly follow those
practices.
We also asked whether
Apple is as sustainable as it makes its stakeholders believe. As we have already stated, Apple is a company
that tends to mislead its stakeholders into believing whatever the company wants
in order to be able to gain more reputability while only caring about gaining
profits. It is an understatement to state that Apple is, indeed, a sustainable
company. Currently, the company is at the fifth stage of sustainability
maturity and Apple has been creating multiple sustainable programs since 2012.
Some of those programs are the Regulated Substance Specification, Supplier Energy
Efficiency Program, or the Impact Acceleration. According to Eccles &
Serafeim (2013) in order to increase profitability, companies should invest in
sustainable practices that tackle their most material ESG issues companies. Apple’s
most material issues are data security, employee engagement, diversity, and
inclusion, product design and life-cycle, supply chain management, and
materials sourcing and efficiency. Of those five, Apple only invests in data
security, employee engagement, diversity, and inclusion, and material sourcing
and efficiency. Apple invest in data security by creating some of the safest smartphones
in the market with features such as encrypted data and unique device account
numbers. Furthermore, Apple invest in material sourcing and efficiency by
collaborating with the Oeko-Institute e.V. to develop a report named Material Impact Profiles (MIPs)
to analyze the environmental, social, and supply impacts of different mined
materials. Apple invests in employee engagement, diversity, and inclusion by
implementing practices such as inclusive hiring and diverse representation,
initiatives for enduring change in research and development, and equity pay for
everyone and everywhere. Nevertheless, Apple does not invest in sustainable
practices for its supply chain and product design and life-cycle which has
caused greater issues for the company. For example, Apple has created the
iPhone 13 which is created with recycled materials such as tin, tungsten, and
gold. Furthermore, the iPhone 13 uses 54% less energy than the energy
conservation standard and it has to assist Apple to reduce its iPhone carbon
footprint by 6%. Yet, the company keeps increasing the waste it sends to
landfills as Apple has still not created a closed-loop strategy for its
products having into consideration the full life-cycle of its products. Apple may
use recycled materials to create its packaging and its products, but the company
has failed to incorporate end-of-life-cycle products into its strategies. Furthermore,
after the Foxconn dilemma that occurred in 2010, Apple created sustainable
practices to assist its suppliers to implement better working conditions for its
employees. Nonetheless, it is calculated that only 20% of those suppliers
implement those practices. Furthermore, in 2021 the company was accused of
using forced labor and violating Chinese labor laws. Moreover, former Apple
employees stated that the company did not take major actions to not delay
product launches.
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