In a move aimed at boosting the use of green energy across its supply chain, Apple says it will team up with 10 of its suppliers in a new investment fund that will put money into renewable energy projects across China.
The technology giant its suppliers have agreed to invest a combined $300 million in the newly created China Clean Energy Fund over the next four years, the company announced. It is a closed-end fund managed by Deutsche Bank’s asset management unit, DWS Group, and will back clean energy projects that combined will generate more than 1 GW of energy, Apple says.
Information on what specific projects the fund may invest in, or what criteria the fund managers will use when deciding on investments, was not available. But, in addition to investing in renewable energy projects, the fund will develop renewable energy projects itself, a statement from Apple says.
The 10 suppliers that have agreed to invest in the fund are Catcher Technology, Compal Electronics, Corning, Golden Arrow, Jabil, Luxshare-ICT, Pegatron, Solvay, Sunway Communication and Wistron, according to Apple.
“We’re thrilled so many of our suppliers are participating in the fund and hope this model can be replicated globally to help businesses of all sizes make a significant positive impact on our planet,” Lisa Jackson, Apple’s vice president of environment, policy and social initiatives and the former Environmental Protection Agency administrator, says in a statement.
Several of the participating companies are among the 23 firms taking part in Apple’s Supplier Clean Energy program. Under that program, which launched in October 2015, the companies commit to, by 2020, using only renewable energy for producing the parts they supply to Apple.
Apple notes that smaller companies in particular can find it difficult to transition to clean energy because they often lack access to green energy sources. “By virtue of its size and scale, the China Clean Energy Fund will give its participants the advantage of greater purchasing power and the ability to attain more attractive and diverse clean energy solutions,” Apple says.
The company announced earlier this year that its facilities worldwide are now 100% powered by clean energy. It also said that it is making progress, through ongoing efforts with its aluminum suppliers Alcoa and Rio Tinto Aluminum, on technologies aimed at eliminating eliminate direct greenhouse gas emissions from aluminum smelting.