🧠 Food for thought

Implications, context, and why it matters.

Apple’s India clean energy move leaves supplier gaps

• Apple’s new investment covers its own India operations. Its suppliers still need to shift Apple-related work to 100% clean electricity by 2030 1.
• That goal remains far off in India. A recent report found that only two of 13 suppliers use stronger renewable buying routes such as power purchase agreements, long-term deals for clean power, or self-generation 2.
• In 2024, Foxconn unit FIH Mobile ran on about 35% renewable energy. Tata Electronics reported carbon neutrality only through international renewable energy certificates, tradable credits linked to renewable power generation that the report calls low-impact 2.
• Apple’s earlier venture with CleanMax was built for its offices and retail stores in India. It did not cover the much larger electricity use of manufacturing suppliers there 3.

What Apple’s CleanMax deal means for Make in India

• As Apple builds more products in India while reducing reliance on China, it also needs those factories to meet its environmental standards 1.
• If emissions stay high at newer sites, Apple could weaken its image as a climate leader 4.
• The investment also adds pressure on suppliers to move past low-impact certificates. Longer-term power purchase agreements can add new clean energy capacity to the grid 2.
• The move may set a higher standard for other multinationals moving production to India. Amazon had committed, as of November 2023, to buy electricity from 50 wind and solar projects across India 4.