Zhi DongXi (public number: zhidxcom)
Compile the | Yang Chang
Edit | Three Norths
This week, Apple released its 16th "People and Environment in Our Supply Chain" report. The report notes that Apple's product supply chain involves millions of people in more than 50 countries (or regions).
In 2021, Apple conducted 1177 supply chain enterprise assessments, of which 211 were without prior notice. Meanwhile, Apple announced a new $50 million supply chain enterprise employee development fund.
In the report, Apple also details how the company and its supply chain companies support employees in supply chain companies, how they transition to clean energy, and invest in innovative technologies.
First, launch a $50 million supply chain employee fund
In 2021, Apple conducted 1,117 independent third-party assessments in 52 countries, including 886 corporate code assessments and 291 smelter and refinery assessments. In addition, Apple conducted 211 breakthrough evaluations and surveys. Apple evaluates more than 500 standards, verifies compliance and identifies areas for improvement in supply chain businesses. The assessment includes three areas: workers and human rights, health and safety, and the environment.
At the same time, Apple will also require supply chain companies to accept the Verification Evaluation Program (VAP) of the Responsible Business Alliance Code of Conduct (RBA). In fiscal 2021, Apple Supplier Site completed a total of 99 VAP evaluations for RBAs.
In fiscal 2021, about 86 percent of the assessed suppliers were rated as high performers, 14 percent as moderate performers, and less than 1 percent as low performers.
Apple continues to provide more support to employees in the supply chain. Apple noted in the report that since 2008, more than 23.6 million employees in its supply chain companies have received relevant training. In 2021, Apple launched a new digital platform based on the opinions of supply chain employees surveyed through a focus group approach to provide intensive training directly for supply chain employees. In the future, Apple will continue to cooperate with the international development organization Pact to provide relevant training for miners in Congolese mining areas.
As part of the supply chain enterprise assessment, in 2021, Apple interviewed 87,626 supply chain enterprise employees and conducted 42,230 telephone return visits to confirm that these employees were not affected by the interview. The number of people interviewed by Apple in 2021 is 69% higher than the number of interviews in 2020. In addition, Apple anonymously surveyed 264963 supply chain employees in 191 factories to understand employee satisfaction with the workplace. The number of people surveyed anonymously by Apple in 2021 is 90% higher than in 2020.
Apple also announced a $50 million Supply Chain Employee Fund to empower supplier employees by providing learning opportunities for people in the supply chain and the communities surrounding the supply chain.
The fund program is expected to reach 3.5 million Apple supply chain employees in more than 40 countries. Apple said the fund will first provide employees of Apple's supply chain companies in the United States, China, India and Vietnam. Apple expects more than 100,000 supply chain employees to gain access to new learning opportunities by 2023. The courses available to these employees include courses in the fundamentals from leadership training and technical certification to programming, robotics, and advanced manufacturing, including green manufacturing.
Apple has previously launched the Swift programming program, and from 2017 to the present, a total of 15,852 supply chain enterprise employees have completed the learning program. In 2021, some of these employees who completed swift programming programs will also use the programming skills they learned to develop or release 14 apps on Apple's App Store.
More than 175 Apple suppliers have committed to renewable energy
Apple also controls its supply chain from a safety and environmental perspective. In terms of safety, Apple has introduced a comprehensive guide to equipment from 122 major suppliers, clarifying Apple's fire safety needs during the anodizing and plating processes. Apple will continue to drive security improvements to devices across the supply chain by providing customized, expert-level support to 212 supplier sites.
Apple collects chemical and safety data from more than 1,000 supply chain companies' sites to determine the use of chemicals at those sites, as well as related data and security measures.
In 2021, Apple has also made great progress in environmental protection. The magnetic substances in key components of MacBook Pro, iMac, iPhone 13, iPad (9th generation), Apple Watch Series 7, HomePod mini, and AirPods (3rd generation) are made of 100% recyclable rare earth elements.
The main components of the iPhone 13 use 100% recyclable gold. These main components include the plating of the main logic board and the wires in the front and rear cameras.
Each model in the iPad family now features a 100% recycled aluminum casing. The batteries of the products also use key minerals that have 100% reliable sources and can be recycled, including cobalt and lithium.
Apple will continue to be cautious when collecting primary materials and will evaluate relevant companies.
Apple also pointed out in the report that in 2021, more than 175 of Apple's suppliers have pledged to use renewable energy in the production of Apple products. When it comes to conserving water, Apple's clean water program suppliers have saved more than 50 billion gallons of water from 2013 to the present.
During the COVID-19 pandemic, Apple has also worked with suppliers to protect employees' work safety and reduce the impact of the epidemic on production. Apple conducted more than 200 related assessments to verify that suppliers are complying with COVID-19 control agreements
Conclusion: Apple's supply chain is huge
Apple's supply chain spans more than 50 countries around the world, involving hundreds of businesses. Apple implements its plans by surveying these supply chain companies.
As a technology giant, Apple's every move may affect many related companies. Many companies have also received more industry attention because they have become Apple supply chain companies. As can be seen from Apple's report, fruit chain companies need to face multiple evaluations if they want to maintain their supplier status.