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2019 Progress Report

“We believe that

business, at its best, serves the public good, empowers people around the world, and binds us together as never before."

Tim Cook

CEO Apple Supplier Responsibility 2019 Progress Report3PlanetPeopleProgress We care deeply about the people who build our products, and the planet we all share. So we hold ourselves and our suppliers to the highest standards to ensure everyone is treated with dignity and respect. And we share our work openly so others can follow our lead. We continuously challenge ourselves to expand our education programs and provide skill-building opportunities that meet the needs of those in our supply chain. Since 2008, over 3.6 million supply chain employees have participated in education programming. We"ve implemented programs that help supplier employees learn new skills, earn degrees, and expand their career options. We also provide health and wellness education to give people the tools to take charge of their well-being. Every year, we find new ways to partner with our suppliers to protect the planet. In 2018, our suppliers achieved UL Zero Waste certification for all final assembly test and packaging facilities across iPhone, iPad, Mac, Apple Watch, AirPods, and HomePod. Our suppliers conserved 7.6 billion gallons of freshwater, and 100 percent of our final assembly sites adopted safer, greener cleaners in their manufacturing processes. Driving the highest standards in the world means continuously raising them, and helping our suppliers meet them. In 2018, we completed 770 Apple-managed supplier assessments covering manufacturing facilities, logistics and repair centers, and contact center facilities. In addition, 279 third-party mineral smelter and refiner audits were conducted. We believe that if we"re not finding areas to improve, we"re not looking hard enough. If we discover that standards aren"t being met, we work side by side with suppliers to help them improve. If a supplier is unwilling or unable to meet our requirements, we end our business relationship with them. Through capability building and partnership, we not only improve our suppliers" performance in our supply chain, but beyond it as well. Our 2019 Annual Progress Report outlines the results of our efforts in 2018. Apple Supplier Responsibility 2019 Progress Report4PlanetPeopleProgress

People

Building new skills for the future

Creating paths to advancement

Health education

Supplier workplace rights training

Planet

Greener supply chains reach beyond factory walls

Water stewardship

Safer process chemicals

Eliminating waste

Combating climate change

Progress

Apple-managed assessments

2018 Assessment results

Progress in our mineral supply chain

A deeper look at our Apple-managed assessment results

Labor and Human Rights assessment results

Health and Safety assessment results

Environment assessment results

Leading by example and sharing our work 08

10 13 20 23
28
30
33
34
38
41
42
44
47
48
51
54
59
62
64
M B M+ compliance with Apple

Working Hours Standards

across all work weekssupplier employees trained on their rights since 2007

In 2018, Apple was awarded

an A+ rating and ranked first out of 40 retailers by Mind the Store for our actions to eliminate toxic chemicalsranking,

Corporate Information

Transparency Index (CITI),

5th year in a row

participation in third-party audits across identified tin, tantalum, tungsten, gold, and

cobalt smelters and refinersincrease in high-performing suppliers year over yearsupplier recruitment fees repaid since 2008, $616k

repaid to 287 supplier employees in 2018 gallons of freshwater saved and 39% supplier water reuse rate high-performing supplier facilities,

1% low-performing2018 Stop Slavery Award —

issued by Thomson Reuters

Foundation

final assembly sites for iPhone, iPad, Mac,

Apple Watch, AirPods,

and HomePod UL Zero

Waste certified

770 Apple-managed supplier

assessments + 279 smelter and refiner third-party audits conducted in 45 countries

Mindthe Store

Apple Supplier Responsibility 2019 Progress Report5PlanetPeopleProgress

People

2018 Highlights

Planet

Progress

MineSmelters & refinersComponentsFinal assemblyLogisticsRetail storesRecycling Apple Supplier Responsibility 2019 Progress ReportPlanetPeopleProgress

Our supply chain is global.

So is our responsibility.

Fusion Machine Operator,

Device Glass Technology, United States

Over 3.6 million supplier employees have

participated in education and skill-building programs to date.

Empowering people through

education, skill building and a safe and respectful workplace

Building new skills for the future

Creating paths to advancement: New skills,

degrees, and pathways

Health education: Elevating knowledge

Supplier workplace rights training: Respect for

human rights throughout our supply chain10 13 20 23

Engineer,

iPhone production, China Apple Supplier Responsibility 2019 Progress Report10PeopleProgress Our education programs are designed to provide a path to advancement for the people in our supply chain, from life skills to vocational certifications and college degrees. Here are the stories of a few of those employees who participated in Apple education programs in 2018. For the millions of employees who work for Apple"s suppliers, advancement often begins with education. That means education of all kinds — vocational education, education in the soft skills that help employees become better managers, and health education that gives them tools to manage their well- being. Apple"s education programs are designed to function like a staircase, allowing participants to climb, one step at a time, toward their goals.

Robotics instructor with

students, Robotics classroom, China Apple Supplier Responsibility 2019 Progress Report11PeopleProgress You can see that in action at the facilities of Catcher Technology in Suqian, a Chinese city of 5 million, 300 miles northwest of Shanghai. There, Liu Jingbo is leading his students into the future of manufacturing. The students, though, aren't merely students — they are full-time employees at Catcher who are taking advantage of a program created by Apple that provides on-the-job training in the kind of automation technology that is changing the way manufacturing is done. On each side of the students are six industrial robotic arms at rest, the same kind used throughout Catcher's facility, which manufactures precisely molded machine metal casings that form the foundations of iPhone, iPad, and MacBook. “You need to know the basic coding of how to program your robotic arm," Liu tells his students, who sit before operating systems that control the model robot arms. “But you also need critical thinking skills, so you know how to troubleshoot." At the facilities of the electronics manufacturer Jabil in the central Chinese city of Chengdu, employees were given the opportunity to dedicate time this past fall to learning to code in the Swift language used to create iPhone apps. And that's exactly what they did, building their own original apps over the course of their time in training. “It really changed my life," says Tao Jiang, a technician who joined Jabil in 2018 and co-created an app that helps employees share technical tips through a workplace social media system. “Now if I face a problem, I can turn it around to look at it in a different way. It's totally changed my mindset at work. Before I was just an operator, but now I want to be a professional in the IT department." Another education program, the Factory Line Leader Program, provides college students from vocational schools in four provinces across China with an opportunity to learn to become what are known as line leaders — manufacturing line supervisors, essentially — through a newly created work-study program. Apple Supplier Responsibility 2019 Progress Report12PeopleProgress While suppliers will benefit from a well-prepared workforce, it"s the students themselves who stand to benefit most. “I would say this program changed my career path and even my life," says 23-year-old Wu Zubin. “Before I joined this program I had no idea what I would do, no idea what

kind of job I could get. This has given me a clear path forward."Last year, Lin Weiqiang, along with his classmates in the city of Xiamen in

China"s southern Fujian province, participated in the Factory Line Leader Program at the Apple supplier TPK. They still take classes, but their schooling under the program is much more interactive than traditional vocational education. The program places students on the production line, with veteran mentors to tutor them. And they also receive lessons in soft skills — how to interact with line employees effectively, how to speak in public, and how to organize your time. They"re the sort of skills you need to be a good line leader. “These are the kinds of things you can"t learn in school," says Wang Minglong, another participant in the program. “If I hadn"t come here, I wouldn"t know how to deal with different kinds of people." Providing those paths for advancement is what Apple is aiming to do, by meeting employees where they are and seeking to support their own unique goals. Empowerment and life skillsEducation and career advancementVocational skills 3.6M+

Over 3.6 million participants to date

Apple Supplier Responsibility 2019 Progress ReportPeopleProgress

Creating paths to advancement

New skills, degrees,

and pathways

A path to advance — at every skill level

68
42
of participants had minimal or no coding experience before the program; today, they can develop an app apps developed by participants spanning workplace improvements, gaming, and social networking Apple Supplier Responsibility 2019 Progress Report14PeopleProgress

Coding a new career path

In 2017, a program was created to share Apple's Swift coding technology with supply chain employees. Swift was developed by Apple as an intuitive tool that makes learning to code fun and interactive. Our coding program initially focused on bringing training to supplier employees in several major sites around China, and started with the basics. Once familiar with operating systems and interfaces, students began learning to code. The program offers interactive lessons to teach key coding concepts, and additional challenges and templates encourage students to explore code in engaging new ways. In 2018, the next phase of Swift content rolled out to participating supplier facilities, an intensive App Development with Swift training program. At the end of the program, many students had the skills to successfully create their own app. The apps cover a wide range of topics, from real-time machinequotesdbs_dbs9.pdfusesText_15