APPLE INC. | Financial Impact of renewable energy plans at APPLE INC.

Status
Omitted
Previous AGM date
Resolution details
Company ticker
AAPL
Lead filer
National Legal and Policy Center
Resolution ask
Report on or disclose
ESG theme
  • Environment
ESG sub-theme
  • Climate change
Type of vote
Shareholder proposal
Filer type
Shareholder
Company sector
Technology
Company HQ country
United States
Resolved clause
Resolved: Shareholders request that, by December 31, 2026, the Board of Directors publish a report—prepared at reasonable cost and omitting proprietary or competitively sensitive information – assessing: 1. The incremental capital and operating expenditures Apple has incurred and reasonably expects to incur through FY 2030 to: a. maintain 100% renewable electricity for all corporate operations (offices, retail, logistics hubs, data centers); b. execute the Supplier Clean Energy Program and other initiatives central to Apple’s 2030 carbon-neutral goal (including manufacturing energy, transportation, and materials initiatives); and 2. The anticipated effects of those expenditures on: a. hardware cost of goods sold and gross margin (manufacturing and logistics energy inputs); b. operating margins for the Services segment (e.g., iCloud and other datadependent services); and c. Apple's consolidated profitability under varying power-price scenarios.
Whereas clause
Whereas: Apple Inc. (“Apple” or “Company”) has made far-reaching climate commitments, including powering its corporate facilities with 100% renewable electricity1 2 and achieving company-wide net zero emissions by 2030.3 4 5 Global energy demand will see an unprecedented surge over the next few years.6 7 8 9 10 Apple’s energy assurances from just a few years ago now appear obsolete.
Supporting statement
Supporting Statement: Apple’s green energy pledges already impact manufacturing, logistics, retail, and artificial intelligence. Meeting them will expose shareholders to incremental capital outlays (e.g., power purchase agreements, virtual power purchase agreements, unbundled renewable energy certificates) and higher operating costs—especially as tightening power 1 https://www.apple.com/newsroom/2018/04/apple-now-globally-powered-by-100-percent-renewable-energy/ 2 https://www.apple.com/newsroom/2024/04/apple-ramps-up-investment-in-clean-energy-and-water-around-theworld/ 3 https://www.apple.com/newsroom/2020/07/apple-commits-to-be-100-percent-carbon-neutral-for-its-supply-chainand-products-by-2030/ 4 https://www.apple.com/environment/ 5 https://www.apple.com/environment/pdf/Apples Carbon Removal Strategy White Paper.pdf 6 https://www.iea.org/news/global-electricity-demand-to-keep-growing-robustly-through-2026-despite-economicheadwinds 7 https://www.wsj.com/business/energy-oil/how-big-data-centers-are-slowing-the-shift-to-clean-energy-44ef4145 8 https://www.wsj.com/business/energy-oil/ai-boom-to-fuel-surge-in-data-center-energy-needs-iea-99f90810 9 https://deloitte.wsj.com/riskandcompliance/powering-generative-ai-innovative-solutions-for-data-centers397d12d8 10 https://www.wsj.com/science/environment/ai-electricity-water-environmental-impact-59520a43 markets lift wholesale prices. The U.S. Department of Energy notes that interconnection costs for new renewable resources now equal 50-100% of total project cost as penetration rises, up from less than ten percent a few years ago.11 Apple’s 2024 Environmental Progress Report12 discloses renewable-energy volumes and supplier participation but does not quantify (i) the incremental capital and operating expenditures already incurred or expected to achieve 100 % renewable electricity for expanding data-center loads, or (ii) the effect of those expenditures on the Services-segment operating margin or Apple’s consolidated profitability. Investors therefore lack critical insight into the financial trade-offs embedded in Apple’s energy strategy. For purposes of this proposal, “incremental” means costs relative to the lowest-cost reliable power available in each market. This Proposal does not prescribe energy procurement practices; it encourages disclosure of energy costs for shareholder education. The requested report could, at management’s discretion, discuss relevant risk-mitigation strategies and sensitivity analyses illustrating profitability under energy type and price trajectories. Shareholders should be concerned that Apple’s existing disclosures appear to operate under assumptions that have become considerably less likely in recent years. This report would provide investors with insight into the cost, risk, and return profile of Apple’s comprehensive renewable-energy and carbon-neutral roadmap—enabling an informed judgment about whether the program enhances or dilutes long-term shareholder value.

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