Nature and Biodiversity

Apple has issued a 'green bond' to help tackle climate change

The Apple Inc. store is seen on the day of the new iPhone 7 smartphone launch in Los Angeles, California, U.S., September 16, 2016. REUTERS/Lucy Nicholson  - RTSO2SH

Last year, Apple allocated $442 million to 16 different projects from renewable energy to recycling. Image: REUTERS/Lucy Nicholson

Valerie Volcovici
Journalist, Reuters
Share:
Our Impact
What's the World Economic Forum doing to accelerate action on Nature and Biodiversity?
The Big Picture
Explore and monitor how Future of the Environment is affecting economies, industries and global issues
A hand holding a looking glass by a lake
Crowdsource Innovation
Get involved with our crowdsourced digital platform to deliver impact at scale
Stay up to date:

Future of the Environment

Apple Inc offered a $1 billion bond dedicated to financing clean energy and environmental projects on Tuesday, the first corporate green bond offered since President Donald Trump withdrew the United States from the Paris climate agreement.

The offering comes over a year after Apple issued its first green bond of $1.5 billion - the largest issued by a U.S. corporation - as a response to the 2015 Paris agreement.

Apple said its second green bond is meant to show that businesses are still committed to the goals of the 194-nation accord.

“Leadership from the business community is essential to address the threat of climate change and protect our shared planet,” said Lisa Jackson, Apple's vice president of environment, policy and social initiatives.

Apple Chief Executive Tim Cook was one of several CEOs who directly appealed to Trump to keep the United States in the pact before he made his decision.

The tech giant said proceeds from the green bond sales will be used to finance renewable energy, energy efficiency at Apple facilities and in its supply chain and procuring safer materials for its products.

The offering also includes a specific focus on helping Apple meet a goal of greening its supply chain and using only renewable resources or recycled material, reducing its need to mine rare earth materials.

Last year, Apple allocated $442 million to 16 different projects from renewable energy to recycling from its first bond offer.

One of the projects it funded was a robotic system called Liam to take apart junked iPhones and recover valuable materials that can be recycled, such as silver and tungsten - an attempt to address criticism that Apple's products, while sleek and seamless in design, are so tightly constructed that their components can be difficult to take apart.

Although green bonds comprise a small fraction of the overall bond market, demand has grown significantly as investors seek lower-carbon investments.

In 2016, $81 billion of green bonds were issued, double the number from 2015, according to the Climate Bonds Initiative, an organization that promotes the use of green bonds.

Governments are also embracing the use of green bonds as a way to meet a 2015 pledge by world leaders to limit global warming this century to below 2 degrees Celsius.

Loading...
Don't miss any update on this topic

Create a free account and access your personalized content collection with our latest publications and analyses.

Sign up for free

License and Republishing

World Economic Forum articles may be republished in accordance with the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International Public License, and in accordance with our Terms of Use.

The views expressed in this article are those of the author alone and not the World Economic Forum.

Related topics:
Nature and BiodiversityEnergy Transition
Share:
World Economic Forum logo
Global Agenda

The Agenda Weekly

A weekly update of the most important issues driving the global agenda

Subscribe today

You can unsubscribe at any time using the link in our emails. For more details, review our privacy policy.

Why nature-positive cities can help transform the planet

Carlos Correa Escaf

May 24, 2024

About Us

Events

Media

Partners & Members

  • Join Us

Language Editions

Privacy Policy & Terms of Service

© 2024 World Economic Forum