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 commence, Apple Inc. has integrated low carbon design principles into their
products. The company has enhanced manufacturing processes, minimizing waste and
optimizing material utilization. Apple's commitment extends to designing products that
require fewer materials from the outset, ultimately reducing emissions associated with
material transportation and processing. As Apple progresses towards its 2030 carbon
neutrality goal, ongoing efforts involve exploring new materials and refining manufacturing
techniques. A notable focus has been on improving the carbon efficiency of integrated
circuits, recognized for their carbon-intensive nature. These circuits play crucial roles in
electronic devices but demand substantial energy for production. In pursuit of sustainable
solutions, Apple has engaged in collaboration with IMEC, a pioneering research and
innovation hub in nanoelectronics and digital technologies. As the first public company to
join IMEC in October 2021, Apple aims to enhance data associated with integrated circuit
production and leverage shared expertise to identify carbon reduction opportunities across the
industry. Apple remains dedicated to investigating opportunities for enhanced efficiency
throughout its product manufacturing processes. In 2022, the company continued investments
in research and development projects targeting waste reduction, decreased machining time,
energy efficiency in material transformation, and maximizing recovery from manufacturing
scrap. Once these advancements are successfully developed, Apple plans to collaborate with
its suppliers to implement them at scale within Apple's supplier facilities. (Apple,2022a)

Furthermore, Apple has embraced the incorporation of recycled materials in its

manufacturing processes as part of a strategic initiative to reduce the carbon footprint of their
products. The company's approach involves transitioning to materials produced using low-
carbon energy and recycled content, particularly focusing on components that significantly
contribute to the product carbon footprint. To advance this commitment, Apple joined the
First Movers Coalition's near-zero emissions primary aluminum commitment for 2030,
underlining their dedication to sustainable material resourcing. Apple's "GiveBack" program
facilitates the exchange of old iPhones for newer models, promoting recycling practices. The
traded-in devices undergo recycling, extracting specific materials for reuse.
 (Apple GiveBack Campaign)

The ultimate objective is to manufacture every Apple product with 100% recycled or
renewable materials. To achieve this goal, Apple designs devices to incorporate more
recycled content and ensures the recovery of these materials at the end of a product's life
cycle. This strategy reduces reliance on mining, shipping, and processing raw materials,
thereby mitigating the carbon footprint and conserving natural resources. Given that
aluminum constitutes a significant portion of Apple's product manufacturing footprint, the
company has developed a 100% recycled alloy that meets high-performance and durability
standards. Notably, the Apple Watch Series 8, Apple Watch SE, all iPad models, MacBook
Air, Mac mini, and the 14-inch and 16-inch MacBook Pro models now utilize 100% recycled
aluminum in their cases. As a result of these initiatives, aluminum accounted for less than
10% of Apple's product manufacturing footprint in 2021. Apple's commitment to
sustainability extends to the innovative use of tools and technologies for material
reclamation. Disassembly robots play a crucial role in dismantling iPhone devices, recovering
valuable materials such as gold, cobalt, tungsten, and rare earth elements. These materials are
then transformed back to their raw state and reused as recycled materials in the production of
the next generation of Apple products. This comprehensive approach aligns with Apple's goal
of promoting a circular economy and minimizing environmental impact throughout the
product life cycle. (Apple, 2002b)

In addition to incorporating recycled materials, Apple has actively pursued green

practices by prioritizing improvements in energy efficiency. A significant portion of Apple's
gross carbon footprint, 65 percent, is attributed to the manufacturing of its products.
Recognizing this impact, Apple collaborates closely with its suppliers, making energy
reduction a focal point of the company's overall strategy. This collaborative effort aims to
utilize clean energy as efficiently as possible throughout the entire supply chain, leading to
the establishment of leaner and more energy-efficient factories worldwide. The Supplier
Energy Efficiency Program, initiated in 2015, plays a pivotal role in assisting Apple's
suppliers in optimizing their energy consumption. By implementing energy-efficient
practices, the program aims to reduce the energy intensity of manufacturing, resulting in a
notable decrease in carbon emissions. Achieving energy efficiency gains and subsequent
carbon savings often involves improvements at the facility level. This may include the
replacement of outdated and inefficient lighting and equipment, as well as the capture and
reuse of waste heat. Additionally, refining manufacturing processes through the use of smart
controls and monitoring provides opportunities to accomplish the same tasks with reduced
electricity consumption. Through these concerted efforts, Apple continues to make strides in
enhancing energy efficiency across its supply chain, contributing to a more sustainable and
environmentally conscious approach to manufacturing. (Apple, 2022c).

Finally, another key green practice employed by Apple involves the use of clean
electricity. As Apple experiences growth, the company actively launches new renewable
electricity projects worldwide. These initiatives, managed by Apple, are designed to offer
more cost-effective energy in the long term, with reduced price volatility. The incorporation
of renewable electricity not only powers Apple's operations but also extends to the company's
suppliers. This strategic move provides Apple and its suppliers with greater control over their
energy supply, minimizing exposure to cost fluctuations. Apple's commitment to supporting
its suppliers in adopting renewable energy technologies places them in a unique position to
drive environmental action within their respective regions. This collaborative effort not only
advances Apple's commitment to carbon neutrality by 2030 but also contributes to significant
progress in promoting sustainable practices throughout the supply chain. By leveraging clean
electricity, Apple aims to establish a competitive advantage, not only in terms of operational
efficiency but also as a catalyst for positive environmental change on a global scale (Apple,
2022d).

Certainly, Apple Inc. has indeed brought about positive impacts through its green
practices, particularly in reducing its carbon footprint. The commitment to using 100%
renewable energy for its operations has been a significant driver in achieving this goal. By
shifting away from fossil fuels and embracing renewable sources such as solar and wind
power, Apple has experienced a notable reduction in greenhouse gas emissions. Currently, all
Apple retail stores, data centers, and offices globally source 100% renewable electricity,
marking a substantial milestone in the company's sustainability efforts.

In addition to reducing its carbon footprint, Apple has achieved carbon-neutral

operations by implementing carbon neutrality measures across its corporate offices, data
centers, and retail stores. This proactive approach sets a precedent in the industry, showcasing
the feasibility of large-scale carbon reduction strategies. Apple's commitment to low carbon
production and the utilization of renewable energy in its product design has played a crucial
role in reaching this milestone. By focusing on creating new renewable energy projects,
supporting innovations in renewable energy, and implementing projects that benefit local
communities, Apple continues to demonstrate its dedication to environmental stewardship
and sustainable business practices.
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 topic is renewable energy, which refers to energy sourced from natural
elements replenished at a rate higher than their consumption. Examples include sunlight and
wind, continuously replenished in nature. These sources are abundant, with solar energy
being a prime example due to its derivation from sunlight, which is the most prolific energy
source. The Earth intercepts solar energy at a rate approximately 10,000 times greater than
humanity's energy consumption rate. (United Nations, n.d). Solar energy offers a multitude of
benefits, as solar technologies can provide heat, cooling, natural lighting, electricity, and fuels
for various applications. The conversion of sunlight into electrical energy is achieved using
either photovoltaic panels or mirrors that concentrate solar radiation.
 (An example on how electric vehicles functions)

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

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

https://www.apple.com/my/environment/pdf/
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Apple (2022b). Apple Environmental Progress Report 2023, 14-15.

https://www.apple.com/my/environment/pdf/
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Apple (2022c). Apple Environmental Progress Report 2023, 18.

https://www.apple.com/my/environment/pdf/
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Apple (2022d). Apple Environmental Progress Report 2023, 20.

https://www.apple.com/my/environment/pdf/
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United Nations (n.d). What is renewable energy ?

https://www.un.org/en/climatechange/what-is-renewable energy#:~:text=Renewable
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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-
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Global green technology and sustainability market size 2022-2030. (2023, July 21). Statista.
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%202023%20to%202030.