Denmark has plenty to learn from the Silicon Valley ecosystem
Silicon Valley remains the world’s leading entrepreneurial ecosystem - this in spite of a global pandemic with remote work and relocations from the area. But what makes Silicon Valley unique, and what can we learn from the ecosystem in Denmark?
Apple, an American company based in Silicon Valley, has announced its plan to become carbon neutral by 2030, not only across its own directly controlled business activities but also throughout its supply chain and products. Considering that 98% of its emissions are not directly under Apple’s control, this is a daunting task. However, the company's efforts to transform its complete global operations are already well underway. Apple plans to reach its 2030 goal by reducing its total emissions by 75% and implementing Carbon Dioxide Removal (CDR) solutions to balance and address the remaining 25%[1].
The scale of Apple’s commitments, extending beyond just reducing its own absolute emissions, has the potential to drive massive change. Especially through its vast supply chain, where now more than 300 manufacturers in over 28 different countries have committed to using 100% clean energy for Apple production by 2030[1]. Apple works closely with its suppliers, providing them with resources, training, and support to transition to cleaner energy and reduce their emissions. As of 2023, Apple’s manufacturing partners support over 13 gigawatts of renewable electricity around the world, marking a nearly 30 percent increase in the last year. This effort not only aids in Apple's own pursuit of carbon neutrality but also helps potential suppliers and partners to adopt similar sustainable practices, thereby expanding its impact beyond the company's direct operations.
“Fighting climate change remains one of Apple’s most urgent priorities (…). We’re looking forward to continued partnership with our suppliers to make Apple’s supply chain carbon neutral by 2030. Climate action at Apple doesn’t stop at our doors, and in this work, we’re determined to be a ripple in the pond that creates a bigger change.”
Tim Cook, CEO of Apple[2]
As the indirect overall emissions in a company’s value chain, Scope 3 accounts for all of its upstream and downstream emissions. These are connected to activities such as the production of purchased materials, outsourced activities, waste disposal, and the use of sold products and services[3]. Such emissions are usually the hardest for companies to measure and tackle. At the same time, this area offers the broadest potential for innovation and improvements in efficiency and provides opportunities for companies to influence their wider business ecosystems.
In Apple's case, this presents a chance to redefine product design, manufacturing processes, and the use of energy, setting a new standard for sustainable operations within the industry. One key example of this initiative is Apple's Clean Energy Charging feature[4]. Introduced with iOS 16, this innovative feature enables your device to charge when the lowest carbon-emission electricity sources are available[5]. This initiative demonstrates how Apple is utilizing technological advancements in their journey towards carbon neutrality. According to Mary Ann Piette, Senior Scientist at Lawrence Berkeley National Laboratory, this development is a part of the future of devices, where there will be an increasing shift in energy consumption to align with cleaner and cheaper grid power[5]. If adopted by all U.S. iPhone users, this feature could have a positive CO2 impact comparable to removing 85,000 cars from the roads[6].
As of 2020, Apple had achieved a 40% reduction in CO2 emissions relative to 2015. Currently, the company claims carbon neutrality across its operations and has also launched its very first carbon-neutral product[7].
One component of Apple’s climate strategy, aimed at addressing or offsetting the remaining 25% of its total emissions, involves an initial commitment to nature-based CDR projects. In 2021, Apple launched its Restore Fund with a $200 million commitment. In 2023, Apple further expanded its commitment to CDR by making an additional investment commitment of up to $200 million to a fund aimed at removing 1 million metric tons of carbon dioxide per year at its peak, all while generating a financial return for the fund's investors.
Apple's approach to climate resilience illustrates how addressing a company’s complete carbon emissions is possible even when 98% is out of its direct control. It involves prioritizing reductions to the fullest extent and then committing to CDR, while recognizing that long-term success aligns with sustainable practices. Apple is not only reducing emissions; it's also safeguarding its business against potential disruptions caused by resource scarcity, regulatory changes, or reputational risks associated with environmental impact. This points to the growing consensus among leading businesses that addressing climate change is not merely an ethical obligation but also a strategic imperative for resilience. It's about securing the future of the company, the communities in which it operates, and the planet.
[1]Energy World: “Apple Leads Tech Giants in Pushing Suppliers to Adopt Clean Energy”, 2023
[2]Apple: ”Apple Calls on Global Supply Chain to Decarbonize by 2030”, 2022
[3]Greenhouse Gas Protocol: ”Scope 3 Calculation Guidance”, 2013
[4]Apple: “Use Clean Energy Charging on Your iPhone”, 2023
[5]Computer World: ”Apple's Clean Energy Charging is the Future of Electronics”, 2023
[6]The Washington Post: “The iPhone is Staging a Quiet Revolution in How We Charge Our Devices”, 2023
[7]Apple: ”Environmental Progress Report”, 2022