Apple already has ventured far beyond most other companies when it comes to pushing for climate action within its supply chain. 

Consider that it has convinced more than 70 Apple suppliers to use renewable energy to produce products on its behalf, an effort funded in part by close to $5 billion in green bonds issued by the technology giant as well as a dedicated pool of money in China. 

Now, it’s wandering farther into uncharted territory.

With its latest set of combined sustainability commitments, Apple is pushing for carbon neutrality across its entire business by the end of this decade, including its supply chain and the life cycle for its products. Its own operations have been carbon neutral for some time, thanks in large part to its extensive investments in renewable energy projects.

While every large company focuses to some extent on motivating suppliers to embrace sustainability principles such as reduced emissions or zero waste, few have aggressively and officially extended their corporate carbon neutrality pledges into the Scope 3 realm and into to their entire value chain. IKEA, L’Oreal, Microsoft and Unilever stand out as the notable recent exceptions in my sphere of knowledge. (I’d love to hear about more.)

“By driving this scale of climate ambition through its supply chain, Apple is making a big, global contribution to the move to clean energy, transport and manufacturing. It will have a particularly big impact in some of the most critical markets for tackling greenhouse gases. The 2030 timing is as important as the scale of this move. By then, the whole world needs to halve carbon emissions,” said Sam Kimmins, head of the RE100 initiative at the Climate Group, in a statement.

As of this update — and thanks to new projects in Arizon, Oregon, and Illinois — Apple has supported the development of more than 1 gigawatt of clean energy to support its own corporate campus footprint.

Apple’s new carbon neutrality strategy will be supported by a number of investments, including a carbon solutions fund to protect and restore forests (something that Microsoft and Amazon are also prioritizing). Its first projects, in partnership with Conservation International, include a unique focus on restoring mangroves — which can store up to 10 times more carbon than forests on land. The overall aim of this nature-based carbon solutions fund is to remove 1 million to 2 million metric tons of carbon dioxide annually, with the aim of scaling over time.

“This approach is more than buying carbon credits — it is an investment in nature that provides meaningful returns for both the planet and the people who invest in it,” Apple notes in 2020 annual environmental progress report.

Speaking of investments in people, Apple has created an Impact Accelerator meant specifically to invest in minority-owned businesses focused on “positive outcomes” in its supply chain or addressing communities disproportionately affected by environmental hazards.

“Systemic racism and climate change are not separate issues, and they will not abide separate solutions,” said Lisa Jackson, vice president of environment, policy and social initiatives for Apple, in a statement. “We have a generational opportunity to help build a greener and more just economy, one where we develop whole new industries in the pursuit of giving the next generation a planet worth calling home.”

Apple hasn’t said how much the accelerator will allocate in funding toward addressing the climate crisis, but the effort is part of Apple’s larger $100 million Racial Equity and Justice Initiative announced in June. We’ll be watching this initiative closely.

Plenty of other updates are included in Apple’s progress report. I’ll leave you with a few highlights: 

• 7 gigawatts and counting. That’s how much clean energy companies within Apple supply chain have committed to using. In China and Japan, Apple also has stepped in to help facilitate the development of close to 500 megawatts of solar and wind projects. Incidentally, while many of these initiatives are international, close to a dozen involve facilities in the United States.
• A new materials diet. Apple is using the first batch of the low-carbon aluminum it has been developing in production related to the 16-inch MacBook Pro notebook computer.
• Liam and Daisy, meet Dave. The company has added another disassembly robot within its materials recovering and circular production lab in Austin, Texas. This one takes out the Taptic Engine from iPhones, which is the haptics technology component. (You can catch a video here.)
• Recycled and rare. All rare elements included in the aforementioned Taptic Engine were reclaimed from recycling.
• 35 percent. That’s how much Apple reduced its actual carbon footprint since it peaked in 2015.

This story was updated at noon EDT July 21 to remove the Greenpeace USA comment, as it did not properly reflect certain publicly stated elements of Apple’s strategy.

As COVID-19 rampages through vulnerable minority populations with tragic consequences, and protests for racial justice surge among a similar demographic, city climate planners see a renewed focus on climate justice.

The pandemic, in some ways, has been a trial run for the anticipated coming impacts of climate change — a not-so-distant future in which low-income and minority populations are the most at risk. As mayors make quick strategic changes to address the short-term COVID crisis, they are also in the midst of planning for similar long-term climate issues.

Last week, the C40 Cities Climate Leadership Group, an organization of mayors from around the global, launched a Detailed Agenda for Green and Just Recovery from COVID-19 to ensure that this crisis propels sustainable innovations instead of a return to old ways. 

“Equity is really at the heart of our recovery in the city,” said Mayor LaToya Cantrell of her city, New Orleans, during the C40 press conference. “We’ve had 542 deaths [due to COVID-19] in our city and out of the 542, 404 were Black or Brown. Our response to this pandemic is an opportunity to create a much more healthier, more sustainable and equitable city, no doubt about it.”

Another organization, Climate Mayors, a network of 438 United States mayors, hopes to provide peer-to-peer sharing between American cities to help adapt to and in some ways reverse our changing climate. It has helped fill the U.S- shaped hole in leadership left by the Trump administration. 

“We want to make sure we’re reflecting back to the international community that there is a lot of effort going on to reduce emissions and energy technology,” said James Ritchotte, director of Climate Mayors.

GreenBiz recently spoke with eight chief sustainability officers and mayors that are part of the Climate Mayors network to understand what actions they are taking to ensure climate justice is embedded into their climate resiliency plans. Below are excerpts from the interviews, edited for length and clarity.

Boston

Boston is aiming to be carbon neutral by 2050 by focusing on their 86,000 buildings. The city is also investing in seawalls to prevent erosion due to sea level rise. 

Christopher Cook, chief of environment, energy and open space

On COVID-19 pandemic learnings that can apply to climate change initiatives: 

What COVID has put in the forefront is how interwoven racial equity is with our climate crisis. Those social equity gaps in our society show how intentional we have to be in the climate work to make sure that we’re not exacerbating the situation. We have to be very intentional about job creation, or else our most socially vulnerable won’t be able to fully participate. We started very intentional conversations with our Office of Workforce Development to make sure that we are connecting directly with communities of color, and are starting a job training program for city retrofitting.

On how COVID-19 gives us a chance to help vulnerable populations: 

We can take [the pandemic as an] opportunity to be intentional about creating a cleaner respiratory environment for our citizens, especially those living in affordable housing. People need to have air filters and high-quality HVAC systems. Can we also use this as an opportunity to electrify those systems and retrofit those systems? So as we make buildings more efficient and cleaner from a carbon perspective, can we also make them healthier buildings?

Carmel, Indiana

Carmel is focusing on making its city greener through transportation initiatives, including more bike access and roundabouts. 

Mayor James Brainard

On how making the city more bike accessible is an environmental justice issue:

Everybody talks about affordable housing, it’s really more about affordable living. A lot of city design requires huge amounts of a poor person’s expenditures be spent on gas, automobiles and insurance. We unveiled 225 miles of bike trails so you can get anywhere within the city of Carmel by bicycle, which is also important for environmental justice. To somebody who can’t afford a car, that makes a huge difference. So many times we’ve designed our cities so that not having a car isn’t even an option. We are also working to make our city beautiful, too. Wealthy people can travel to some of the most beautiful places on earth. But for people who can’t, they have a right to have their city be beautiful as well. So we focused on that through public art and beautiful parks and trails.

On environmentalism as a Republican issue: 

[Environmentalism] is a Republican issue. It was Teddy Roosevelt that started the national parks. It was Eisenhower who set aside the arctic reserve. It was Nixon and Ford who signed the EPA into existence. The Migratory Bird act was Nixon. The Endangered Species Act was for Nixon. The Republicans were very much environmentalists, starting with Teddy Roosevelt. Ford was always environmentalist, and got a lot done. And it disappoints me that this is something the Republican party has not focused on recently.

On how two ideologies can come to the same decision that benefits climate:

I had a guy who was very conservative giving me a hard time about spending $750,000 on switching to LED streetlights. So I said to him, “Well, what about the cost savings?” Because of less electricity, the savings will be about a 22 percent a year annualized rate of return on that money we invest. I showed him the bills. And he said “Oh, I guess this is a pretty good idea.” So he didn’t care about the environment. But he did care a lot about the return on investment. By the time we ended the conversation he got to the same place. But not for the environmental reason, but for a fiscal reason. People can get in the same place for different reasons.

Houston

Houston has committed to 100 percent renewable energy for all municipal buildings on its way to reaching carbon neutrality by 2050.  

Marissa Aho, chief of resilience officer

On Houston’s strategy for imbedding climate justice into climate resilience:

In January we released a report with recommendations particularly related to flood resilience. We focused on three historically underinvested communities in Houston: Independence Heights; Greenspoint; and Kashmere Gardens, which is part of Mayor [Sylvester] Turner’s Complete Communities Plan initiative, which is looking at 10 of our most historically under invested African American and Hispanic, Latinx neighborhoods, and creating action plans to improve quality of life. A majority of the key actions are really understanding that our most vulnerable people, places and systems are disproportionately affected when there is any disruption. So, we have a number of targets but one is to address the huge disparities in life expectancy depending on what neighborhood you grew up in or live in. And that pre-COVID was a 24-year disparity. 

Los Angeles

Los Angeles is on track for a 45 percent decrease in emissions by 2025 with the goal of carbon neutrality by 2050. The city’s climate initiatives was written in conjunction with creating new green jobs as part of Los Angeles’ Green New Deal.  

Lauren Faber O’Connor, chief sustainability officer

On how Los Angeles plans to address heat issues to benefit lower-income communities: 

A big concern of climate change are impacts of heat and extreme heat in Los Angeles. Some of our citywide goals just facilitate a cooler, more resilient city, and I mean cooler as in temperature. This needs to happen citywide but we’re targeting the rollout in communities that are in greatest need and have the lowest tree canopy and the most vulnerability, like an elderly population, low-income population who may not be able to run an AC if they even have an AC. We want to make sure that we’re cooling those neighborhoods, and doing it in a way that meets their needs by focusing on the walk to a bus stop and at the area around the bus stop. The laying of cool pavement to reduce the urban heat island effect by literally paving a lighter shade over our streets. And then combining those with local tree planting to create more canopy cover and doing those things in neighborhoods that need it the most.

On focusing money towards overlooked communities:

The Transformative Climate Communities Program was created by the state through the climate investments, cap and trade dollars. We worked with local community leaders to prepare projects that would apply for state funding. The first year the Watts neighborhood was awarded a $30 million grant… They’ve suffered a lot of injustices and need more significant and more direct investment. We prioritize that with incredible innovation by electrifying the local buses, electrifying the service in Watts. But also providing an EV Car Share service, bike share and bike lanes, multiple pedestrian improvements to allow for more walking, rooftop solar for home. What’s incredible is that when we hear from our community leaders, they would say to us that Watts is always last. In this project, LA has put Watts in the front of the line.

Oakland, California

Oakland’s climate action plan to get to carbon neutrality includes funding for a downtown shuttle, constructing electric vehicle charging stations and launching a green retrofitting program for residential houses, among 29 other initiatives.  

Daniel Hamilton, sustainability program manager

On climate programs that address inequities: 

When we talked about the need to create denser urban environments to accommodate more people, the community said, “Well, it’s not just about the densities and the land use. Its about housing discrimination.” The climate solutions to these couldn’t be ignorant of or silent on those types of topics. The action items are designed specifically to address the broader social issues as well as climate issues. It’s not just a greenhouse gas reduction policy. It’s a policy that targets the systems that create the greenhouse gases in ways that address historic inequities and provide some solutions. An example of this would be the action items focused on anti-displacement, so keeping people rooted in Oakland. When we talked about this densification of land uses, housing came up as a big issue. But the final action item doesn’t say “provide greater densities.” The final action item is actually support for the community land trust model to build wealth within the communities to allow people who are in Oakland to stay in the community and not have to move out to second- and third-tier suburbs and drive a lot further to get to the same jobs they exist in today.

Orlando, Florida

Orlando hopes to power the city entirely off renewable energy by 2050. But the city’s 2018 Community Action Plan is on an even quicker timeline, establishing goals for 2040 that include getting the government’s 232 buildings up to LEED code, planting 20,000 trees and increasing the electrical vehicle infrastructure. 

Chris Castro, director of the office of sustainability and resilience

On creating programs that help low-income communities meet overall climate goals: 

Low- and moderate-income communities often are spending two and three times as much per square foot on utilities than more affluent communities. The landlords of these homes or apartments are reluctant to make ongoing maintenance improvements to them. So they have very outdated air conditioning systems, outdated insulation and lighting. As a result, they have less resources, but they’re spending more on their utility bills. In one of our notorious communities of color, Paramore, people are burdened by upwards of 18 percent of their household income being spent on utilities. The average across in Orlando is 4.5 percent. That has helped us to develop new programs. We’ve partnered with a nonprofit called SELF, Solar Energy Loan Fund. We helped them establish their regional headquarters in Orlando. They provide funding, specifically to low and moderate income communities for home energy improvements, reducing energy and water use, lighting and HVAC, onsite solar, and even sewer and water improvements. It’s a loan product that is really looking at an unsecured very low interest loan for homeowners. So a person with a low credit score of 500 can get a loan for 5 percent to 6 percent interest from SELF versus getting laughed out of the bank when they’re asking for a loan to get a new AC system. This is an opportunity for people on the low and moderate income spectrum to have the financial tools to make these home improvements that improve quality of life, save energy, save water and reduce carbon right at the end of the day. I think we’ve invested about $150,000 over the last few years to help them out.

Richmond, Virginia

To reach the city’s goal of an 80 percent reduction in greenhouse gas emission by 2050, the sustainability office is focusing on increasing alternative energy options with solar panel installations. 

Alicia Zatcoff, sustainability manager

On climate mapping helped with the COVID response:

We have a pretty sophisticated mapping, the equity index. We have gone through and assessed and about 20 social vulnerability factors including geographic-based and demographic factors, resulting over 140 layers and pieces of data on the map. We rank those pieces of land using our climate equity index to identify where new parks or open spaces could be. We mapped our heat index looking for our heat islands. Using the equity index we can prioritize those areas, which is a different approach than we would have taken a year or two ago. So we’ve done that for climate. And then when COVID hit, we went back to see what the risk factors are for getting COVID and then the factors for getting severe disease or dying. And what we found is they are so closely aligned with the climate risk and vulnerability factors. The community that was on the frontline of climate change, we’re also on the front line of COVID.

Saint Paul, Minnesota

Saint Paul’s top priorities are to become a carbon-neutral community and to reduce greenhouse gas emissions 50 percent by 2050. The government buildings are hoping to decarbonize by 2030. 

Russell Stark, chief resilience officer 

On how car sharing will benefit low-income communities 

We are making sure that at the same time that we’re reducing emissions, we’re actually creating a mobility access benefit for our lowest-income communities. For example, car sharing has operated on a round trip model. Most of the parking locations are where the market is, usually around colleges or high density neighborhoods or in some cases better-off neighborhoods. When we thought about expanding our car share was to expand the service into some of our lowest income communities and communities of color. We are partnering with community-based organizations to expand that service into 10 locations that really haven’t had the service before.

Earlier this year, Danone became the first listed company to become an “enterprise à mission,” a new type of corporation created by a 2019 French law. The pioneering governance structure will see the food giant officially entrench environmental, social and societal objectives into its bylaws, alongside more typical profit goals.

Danone, founded more than a century ago and famously declared an asset of national importance by the French government in 2005, has long prided itself on being a purpose-led business. Its new status is the latest in a string of moves the company has made to boost its environmental, social and governance (ESG) credentials as it works towards meeting a highly publicized aim of becoming one of the first B Corps certified multinational.

Eric Soubeiran, the company’s vice president of nature and water cycle, explained that weaning the company off intensive farming is at the core of its new sustainability mission. Danone, which owns a range of household brands including Volvic, Evian, Actimel, Alpro and Activia, is first and foremost a dairy company, after all.

“If you really want to do sustainability well in a company, you need to know your business well,” Soubeiran said. For a food company, that means knowing how and where you source your ingredients, what your customers want, and understanding the provenance of your direct and indirect carbon emissions. “Concretely, when you look at Danone, 60 percent of our carbon footprint is from agriculture,” Soubeiran acknowledged. “Eighty-nine percent of our water footprint is from agriculture. [Sustainability] starts from knowing your Scope 3 [value chain emissions]. It is looking at the elephant in the room, and going after it piece by piece. That is why it’s very important for us to have an opinion about the agriculture model we want.”

[Sustainability] starts from knowing your Scope 3 [value chain emissions]. It is looking at the elephant in the room, and going after it piece by piece.

As such, the company is working with farmers worldwide to adopt a regenerative approach to farming that encourages healthier soil and ecosystems, better water stewardship and a broader diversity of cultivated seeds and crops. Danone is providing training to farmers in France to make the switch to new techniques to meet a goal to rely on 100 percent regenerative farming in the country by 2025. And in order to encourage the approach beyond its supply chain, Danone recently founded the One Planet Business for Biodiversity (OP2B) initiative, a cross-sector effort to improve the private sector’s approach to biodiversity.

The strained food production system is begging for reform, argued Soubeiran. “It is very clear in Danone’s vision that the food system is broken,” he reflected. The practices ensconced in the “green revolution” of the 1970s, he said, have “intensified agriculture practices to a point where we have created a situation where food has become a commodity. And by definition, a commodity has no value or very limited value. That’s why [as an industry] we are focused on volume, not quality, and how we have reached a point where we accept the fact that 30 percent of all food produced globally is wasted.”

The transition away from intensive farming, he stressed, not only can prevent the loss of wild species, create better working conditions for farmers and livestock, end monocropping and protect local ecosystems, but is also a lever that Danone must pull if it is to reduce its carbon emissions to net zero by mid-century in line with global climate goals.

Soubeiran has experience disrupting what he dubs “linearalized” food chains and moulding them to be more sustainable. In a previous role at Danone, he was charged with managing the company’s milk supply during the period when France liberalized its previously tightly controlled milk market. The company decided to eschew a price mechanism focused on volume and set its milk price based on the cost of production, giving Danone leeway to firm up production conditions with farmers. “We wanted to stabilize our relationship with farmers so that we could discuss the way they were farming, talk about sustainability and animal welfare,” Soubeiran explains. “It’s hard to do that when you have huge [price] volatility.”

Indeed, Soubeiran is under no illusions that the wholesale transition to regenerative farming comes at a cost premium, despite growing interest in sustainable products from customers across Danone’s markets. “There is a market for sustainable food — people look for it — but we need to develop parallel stream of financing,” he said. “That’s why Danone has signed the green recovery appeal at the European level, because we believe the transformation and the renegotiation of the agriculture policy is instrumental to that.”

There is a market for sustainable food — people look for it — but we need to develop parallel stream of financing.

An additional stream of financing is targeted at helping farmers improve the quality of what they are producing while keeping prices down for the customer, Soubeiran explained.

As such, in May the company urged the EU to use its upcoming Farm to Fork and Biodiversity 2030 strategies to establish an EU Common Food Policy that provides incentives to farmers to switch to regenerative practices. These, the company suggested, could range from crop and livestock insurance that minimizes the risk of lower yields through the transition process; “innovative multi-stakeholder financing mechanisms” or carbon bonds for agricultural products with pricing adjusted to reflect soil carbon sequestration performance; and guarantees of “first loss” inspired by the renewable energy sector that would allow farmers to fund the transition to more resilient agricultural systems.

Soubeiran contends that the coronavirus has, in some respects, made his mission easier, given that the animal-originating coronavirus has underscored how ecological systems support human life. “If we protect biodiversity, we are basically protecting the diversity of DNA,” Soubeiran mused. “There’s also a sanitary aspect to it, given that we’re protecting corridors of biodiversity. While that was not that obvious six months ago, that’s obvious now for everyone.” He points out more than 65 percent of all emerging infectious diseases in humans are zoonotic — transmitted to people from animals.

But, while the zoonotic coronavirus has turbocharged public understanding of biodiversity and served as a “call to action” for Danone’s corporate sustainability initiatives, Soubeiran concedes that on a practical level the pandemic has hampered the firm’s ongoing efforts to transition farmers to regenerative practices. For example, when social distancing regulations were at their most demanding, trips to train farmers on new practices and discuss investment and financing plans became logistically impossible.

On the bright side, however, the crisis has underlined the resilience of Danone’s direct sourcing model, he says, which minimized supply chain disruptions caused by the pandemic. The firm sources 75 percent of products directly from suppliers, Soubeiran explained, adding that the model is a major boon in a world where collaborations and knowledge-sharing between multinationals and their suppliers are critical to meeting carbon targets and other joint sustainability objectives.

Soubeiran contends that there is a healthy appetite from company shareholders for Danone’s growing file of sustainability initiatives, in particular its decision at the close of last year to publish carbon-adjusted earnings per share (carbon EPS) in its quarterly reports. The metric sends a very strong message to shareholders that the company “has done its homework” on counting its Scope 1, Scope 2 and Scope 3 emissions, according to Soubeiran, as well as exposing them to the invisible cost of carbon. Danone, banking on the assumption it reached peak emissions in 2019, is confident that its carbon-adjusted EPS will rise over the years to come. And investors are engaging with the approach — in 2018, Soubeiran estimates he had 70 interactions with shareholders; last year, it had more than doubled to 190.

Moreover, in late June, 99 percent of shareholders backed Danone’s motion to become an “enterprise à mission,” a turnout dubbed “mind-blowing” by Danone chief executive Emmanuel Faber. “Huge kudos to our shareholders after today’s unanimous support of the change of Danone’s by-laws to incorporate health, planet, people and inclusiveness objectives as part of our mission,” Faber enthused. “You showed evidence that finance can change the world. It is on us, boards and CEOs, CFOs to engage finance on what matters. It responds. Big time.”

Very often, sustainability is seen as a constraint — about less carbon, less pesticide, less fertilizer.

Over the coming months, Soubeiran will focus on steering a cross-sector effort to improve the private sector’s approach to biodiversity, dubbed the One Planet Business for Biodiversity (OP2B) initiative.

The coalition, launched by Danone at last year’s UN COP climate conference, counts consumer goods heavyweights L’Oréal, Google, McCain, Walmart, Kellogg, Nestlé and Unilever. The companies have promised to work together to scale up regenerative agriculture practices, to increase the number of ingredients sourced in order to reduce the world’s reliance on a handful of crops, and to better protect local ecosystems through nature restoration and eliminating deforestation. The group is developing a framework for action that will be unveiled at the IUCN World Conservation Congress, postponed six months to January in the wake of the pandemic.

The initiative has been inspired by “systems thinking,” Soubeiran explained, and will focus on specific actions that can be monitored instead of overarching science-based targets or percentage-based goals. “With OP2B the focus is on action, action that can trigger a transformation,” he said, adding that that the single-issue, action-orientated initiative is “quite a new way of collaborating” for Danone.

Overall, Soubeiran is buoyed by the boundless opportunities’ biodiversity boosting initiatives present to food companies looking to enrich their portfolios — a fact underlined by this week’s World Economic Forum study highlighting how a nature-focused recovery could deliver over $10 trillion of economic gains. “Very often, sustainability is seen as a constraint — about less carbon, less pesticide, less fertilizer,” Soubeiran reflected. “But biodiversity is about more: More choice, more taste, more experience. It’s a very interesting topic and creates a positive spin on sustainability.”