Hypothesis Resolution

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. 


4 Pillars

Product

Planet

People

Profit

Apple’s 2025 Agenda

1. Transition to only recycled renewable materials in products and packaging:

-Eliminate all plastics

-Switching to fiber alternatives (durable wood-derived)

-Efficient use of low-impact materials

2. 10.4 Million devices refurbished for new users in the fiscal year 2020

- Includes all devices collected by Apple for refurbishing during the fiscal year 2020.

1. Apple's 10-year climate roadmap covers its approach toward climate issues:

-Low Carbon Design

-Energy Efficiency

-Renewable Electricity

-Direct Emissions Abatement

-Carbon Removal


2. Since April 2020 Apple has been carbon-neutral

-Stores

-Corporate Facilities

-Business Travel

-Employee Commuting


3. 41 billion gallons of water saved through Apple’s supplier Clean Water program since 2013.

1. Upholding the highest standards

- Apple Supplier Code of Conduct

-Apple Supplier Responsibility Standards


2. Advance respect for human rights

- Promote the application of UN Sustainable Development Goals


3. Encourage gender and racial equity and justice

1. Apple Performance in 2020

- $57 billion in net revenue

- 15.5% market share

- Sales:

US: 45.5%

Outside the US: 54.5%


2. Apple Percentage Growth in Profits

- Suffered a 3.9% difference in net income from 2019

- Net revenue:

2018: $59,531 B

2019: $55,256 B

2020: $57,411 B

- Average growth of 6.2% for the past 5 years (2016-2020)


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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