Case study

In this segment, we’ll analyze a company that has implemented green business practices.
This case study explores Apple Inc.'s commitment to environmental sustainability and its
implementation of green business practices. It delves into the company's initiatives in renewable
energy, product recycling, supply chain sustainability, energy-efficient product design, and eco-
friendly packaging. The study evaluates the impact of these initiatives on Apple's carbon footprint,
resource conservation, supplier accountability, consumer awareness, and competitive advantage.

Apple Inc. is one, if not the biggest technological oriented companies in the world. They
mainly manufacture smartphones or computers. In its 2022 financial year, Apple reported 394.33
billion U.S. dollars in revenues, compared to eight billion U.S. dollars in 2004 (Apple Revenue by
Fiscal Quarter 2023 | Statista, 2023). This revenue has been obtained by the sales of its smartphone
series the “iPhone” or its “Mac” line-up. However, in order to keep up with the ever-changing state
of the world, this company has resorted to implement green practices. This is due to its importance
and benefits which can mitigate risks and reduce costs, but also enhance their reputation, attract
customers who prioritize sustainability, and contribute to the overall well-being of the planet and
society.

To start it off, Apple Inc. has implemented low carbon design in their products. Apple has
made manufacturing processes more efficient which creates less waste and this helps with making
the most out of the materials the company source. Apple has also have been working to design their
products so that they require less material in the first place. Combined, these efforts help reduce
emissions from transporting and processing materials. As Apple progress towards their 2030 carbon
neutrality goal, they continue to investigate new materials and new ways to manufacture efficiently.
In that regard, Apple continued to improve the carbon efficiency of the integrated circuits that they
use in their products. These are the components they’ve prioritized because they’re carbon
intensive. Integrated circuits perform vital functions in electronic devices but require significant
energy to manufacture. Hence, Apple has also continued their work with the sustainable
semiconductor technologies and systems research program of imec, a world-leading research and
innovation hub in nanoelectronics and digital technologies, of which Apple was the first public
company to join in October 2021. Apple’s goal in collaborating is twofold. One is to improve the data
associated with integrated circuit production, from end to end, and to use improved data and shared
expertise to identify carbon reduction opportunities for the entire integrated circuits industry. Apple
also keeps on investigating new opportunities for improved efficiency across their product
manufacturing processes. In 2022, Apple continued to invest in research and development projects
aimed at creating less waste in processing materials, reducing machining time and associated energy
use, more efficiently transforming material into the shapes needed, and maximizing recovery and
reprocessing of manufacturing scrap. Once these improved processes are successfully developed,
Apple plans to work with their suppliers as they deploy them at scale at Apple’s supplier facilities.
(Apple,2022a)
 Next, Apple has implemented using recycled materials in their manufacturing. Materials
selection is another way to reduce the carbon footprint of their products. Apple’s strategy is to
transition to materials manufactured using low-carbon energy and recycled content. They’ve
prioritized the materials and components that make up a large part of their product carbon footprint
to move them closer to their goal of product carbon neutrality. In that matter, to accelerate collective
efforts, Apple signed on to the First Movers Coalition’s near-zero emissions primary aluminum
commitment for 2030. Apple has started a program called “GiveBack” where consumers are able to
trade-in their old iPhone for a newer model. Later on, the old phone will be recycled where certain
materials from the old phone are taken. Apple’s goal is to one day make every Apple product with
100% recycled or renewable materials. To achieve that, they designed devices to use more recycled
content and make sure these materials get recovered when products reach end-of-life. When
manufacturing of products use recycled and renewable materials, Apple is able to lower the reliance
on mining, shipping, and processing raw materials, thereby reducing carbon footprint and conserving
precious natural resources. Aluminum is one of Apple’s most widely used materials, and it
represented over a quarter of their products manufacturing footprint in 2015. Because of that, Apple
developed a 100% recycled alloy that still meets high standards for performance and durability. The
new Apple Watch Series 8 and Apple Watch SE use 100% recycled aluminum in their cases. In
addition, all iPad models, MacBook Air, Mac mini, and the 14-inch and 16-inch MacBook Pro models
also use the same recycled material. Thanks to these changes, aluminum made up less than 10%
Apple’s 2021 product manufacturing footprint. Every Apple product contains materials that can be
used to build new ones. With this initiative, this helps Apple reclaim more materials with innovative
tools and technologies. Disassembly robots, take apart iPhone devices and components to recover
crucial materials like gold, cobalt, tungsten, and rare earth elements. These collected materials make
it back to the same state as raw materials which later is used as recycled materials for the next
generation of products. (Apple, 2002b)

One other way Apple has utilized green practices is by improving energy efficiency. The
manufacturing of Apple products accounts for 65 percent of Apple’s gross carbon footprint. To
address this impact, Apple collaborates closely with suppliers to prioritize energy reductions as an
important element of Apple’s strategy. Together, both Apple and its suppliers work to use clean
energy as efficiently as possible at every point in our supply chain, creating leaner, more efficient
factories all over the world. The Supplier Energy Efficiency Program, launched in 2015, exists to help
Apple’s suppliers optimize their energy use. Implementing energy efficiencies reduces the energy
intensity of manufacturing, which translates to reduced carbon emissions. Energy efficiency gains
and subsequent carbon savings are often found at the facility level. For example, by replacing
outdated and inefficient lighting and equipment or capturing waste heat for reuse. Honing
manufacturing processes using smart controls and monitoring can also offer opportunities to
complete the same work with less electricity. (Apple, 2022c).

Lastly, the green practice that has been used by Apple is by using clean electricity. As Apple
grows, they continue to bring new renewable electricity projects online around the world. In the long
term, these projects ran by Apple will provide more cost effective energy with less price volatility.
Renewable electricity can offer a competitive advantage by providing power to Apple’s operations, as
well as to those of Apple’s suppliers, with greater control over energy supply and reduced exposure
to cost fluctuations. With supporting it’s suppliers to adopt renewable energy technologies helps put
them in a unique position to drive environmental action in their respective regions and significant
progress toward our goal of carbon neutrality by 2030. (Apple, 2022d).

With that being said, Apple Inc. has been able to bring positive impacts with their green
practices. Reduced Carbon Footprint is an impact Apple made by the implementation of renewable
energy. Apple's commitment to using 100% renewable energy for its operations has significantly
reduced its carbon footprint. This shift away from fossil fuels to renewable sources like solar and
wind power has led to a substantial decrease in greenhouse gas emissions. Apple’s retail stores, data
centers, and offices around the world currently source 100 percent renewable electricity. The
company focused their efforts to source renewables around several key pillars which is creating new
renewable energy projects, undertaking projects that deliver clear benefits to local communities, and
supporting renewable energy innovations

Apple Inc. has also achieved carbon Neutral Operations by applying carbon neutrality for its
corporate offices, data centers, and retail stores, Apple has set a precedent in the industry. This has a
positive impact on the environment and demonstrates the feasibility of large-scale carbon reduction
strategies. This came to be with Apple designing their products with low carbon production in mind
and also by using renewable energy.

Challenges

With the ever-changing state of the world, the corporate world has faced many challenges to
mitigate the damage done upon the world. For example, Apple shifting to 100% renewable energy
faced initial obstacles, including the availability and reliability of renewable sources. The transition to
renewable energy requires strategic planning, investment, and a commitment to overcoming
obstacles, showcasing the importance of long-term vision. However, Apple has made small steps in
achieving this goal.

Hence, the lesson learned here is achieving sustainability goals while maintaining economic
viability requires strategic planning by companies. Businesses can learn from Apple's approach to
balancing economic success with environmental responsibility.

In conclusion, the challenges faced by Apple in implementing green business practices

provide valuable lessons for businesses aiming to enhance their sustainability efforts. These lessons
underscore the need for strategic planning, ongoing commitment, stakeholder engagement, and a
balance between innovation and environmental responsibility.
 Future trends and opportunities

The future holds a bright future with current developments of the human kind.
However, they are many steps that have to be taken so that humankind may achieve this that bright
future. Hence, sustainable or rather green practices are needed in order to achieve it. The future of
green practices is expected to be shaped by a combination of technological advancements, policy
changes, and a growing awareness of environmental issues. They are some key trends that may
influence the future of green practices.

The first one is renewable energy. Renewable energy is energy derived from natural sources
that are replenished at a higher rate than they are consumed. Sunlight and wind, for example, are
such sources that are constantly being replenished. Renewable energy sources are plentiful and all
around us. For example, solar energy can be used as renewable energy due to it coming from
sunlight and it is the most abundant source of energy. This is because the rate at which solar energy
is intercepted by the Earth is about 10,000 times greater than the rate at which humankind
consumes energy(United Nations, n.d). The benefit of solar energy is that solar technologies can
deliver heat, cooling, natural lighting, electricity, and fuels for a host of applications. Solar
technologies convert sunlight into electrical energy either through photovoltaic panels or through
mirrors that concentrate solar radiation.

The next trend is electric vehicles. Electric vehicles unlike your conventional transportation
doesn’t use any form of fuel such as petroleum or diesel. A normal vehicle release fumes into the
environment which proves harmful as years go by. Subsequently, an electric vehicles uses a battery
which does not release any sort of fumes into the environment and are environmentally friendly as
they use little or no fossil fuels (petrol or diesel). This in return helps in reducing the amount of
carbon monoxide released in hopes to lower the amount of carbon in the world. Electric vehicles
have low running costs as they have lesser moving parts for maintaining. While some EVs used lead
acid or nickel metal hydride batteries, the standard for modern battery electric vehicles is now
considered to be lithium ion batteries as they have a greater longevity and are excellent at retaining
energy, with a self discharge rate of just 5% per month. Despite this improved efficiency, there are
still challenges with these batteries as they can experience thermal runaway, which have, for
example, caused fires or explosions in the Tesla model S, although efforts have been made to
improve the safety of these batteries. (twi global, n.d).

With that being said, with the ever-growing for green practices. It provides potential for
sustainable entrepreneurship and growth for the green market. One of the most significant
opportunities for sustainable entrepreneurs today is in the field of renewable energy. As climate
change becomes an increasingly pressing issue, the world is transitioning towards a more sustainable
energy system. For example, businesses can focus on developing new solar panel technologies or
building wind farms that generate clean energy. Prioritizing sustainability can help businesses reduce
their carbon footprint and minimize waste, resulting in long-term cost savings. Furthermore, by
creating sustainable products and services, businesses can promote social justice and equality,
improving social welfare.

the world aims to reduce emissions and to be as green as possible. Currently it is the best time to get
into this field. Including so many opportunities and unexplored spheres. Even though many countries
cannot generate enough energy from nuclear energy which is one of the best ways of generating
energy itself. By using renewable, it will prove sufficient if many corporations or countries invest in
this venture (Mark Vassilevskiy, 2023). Between 2022 and 2030, the global green technology and
sustainability market is predicted to grow. In 2022, the size of this market collected to roughly 13.76
billion U.S. dollars. By 2030, it is expected to peak at almost 62 billion U.S. dollars, increasing at a
compound annual growth rate of 20.8% from 2023 to 2030. (Apple Revenue by Fiscal Quarter 2023 |
Statista, 2023)
Reference

Apple revenue by fiscal quarter 2023 | Statista. (2023, November 3). Statista.
https://www.statista.com/statistics/263426/apples-global-revenue-since-1st-quarter-2005/
#:~:text=In%20its%202022%20financial%20year,billion%20U.S.%20dollars%20in%202004.

Apple (2022a). Apple Environmental Progress Report 2023, 14.

https://www.apple.com/my/environment/pdf/Apple_Environmental_Progress_Report_2023.pdf

Apple (2022b). Apple Environmental Progress Report 2023, 14-15.

https://www.apple.com/my/environment/pdf/Apple_Environmental_Progress_Report_2023.pdf

Apple (2022c). Apple Environmental Progress Report 2023, 18.

https://www.apple.com/my/environment/pdf/Apple_Environmental_Progress_Report_2023.pdf

Apple (2022d). Apple Environmental Progress Report 2023, 20.

https://www.apple.com/my/environment/pdf/Apple_Environmental_Progress_Report_2023.pdf

United Nations (n.d). What is renewable energy ?

https://www.un.org/en/climatechange/what-is-renewable energy#:~:text=Renewable%20energy
%20is%20energy%20derived,plentiful%20and%20all%20around%20us.

Twi Global (n.d) What is an EV (Electric Vehicle) ?

https://www.twi-global.com/technical-knowledge/faqs/what-is-an-ev

Mark Vassilevskiy (2023) Sustainable Entrepreneurship: The Future of Business And The Environment

https://www.linkedin.com/pulse/sustainable-entrepreneurship-future-business-mark-
vassilevskiy#:~:text=One%20of%20the%20most%20significant,a%20more%20sustainable%20energy
%20system.
Global green technology and sustainability market size 2022-2030. (2023, July 21). Statista.
https://www.statista.com/statistics/1319996/green-technology-and-sustainability-market-size-
worldwide/#:~:text=Between%202022%20and%202030%2C%20the,20.8%25%20from
%202023%20to%202030.