Technology firm Apple has launched a new investment fund in China that can connect suppliers with renewable energy sources.
This is part of the company’s commitment to address climate change and to increase the use of renewable energy within its supply chain.
Initially, it will include 10 suppliers and Apple will jointly invest about $300m in the next four years into the China Clean Energy Fund. This fund will invest in and will develop clean energy projects which are expected to total more than 1GW of renewable energy projects in the country, which can power nearly 1 million homes.
Since its launch in 2015, the clean energy program, 23 manufacturing partners have committed to 100% renewable energy for Apple production.
Apple said: “Transitioning to clean energy can be complex. This is especially true for smaller companies that may not have access to viable clean energy sources.
“By virtue of its size and scale, the China Clean Energy Fund will give its participants the advantage of greater purchasing power and the ability to attain more attractive and diverse clean energy solutions.”
This fund will be managed through DWS Group, a third party which specializes in sustainable investments and will also invest in the fund.
Apple also stated that it is investing in more than 485MW of clean energy projects across six provinces in china to address the upstream emissions in its supply chain.
The news follows Apple’s announcement earlier this year that its facilities are powered by 100% clean energy. As per the company, by 2020, Apple and its suppliers in more than 10 countries will generate nearly 4GW of clean energy worldwide, representing one-third of the company’s current manufacturing electricity footprint.
Presently, Apple is also working with its suppliers to find new ways for reducing greenhouse gas emissions. It recently achieved a breakthrough with aluminum suppliers Alcoa and Rio Tinto Aluminum on a new technology that eliminates greenhouse gas emissions resulting from traditional smelting process, a key step in aluminum production.