Recently Apple released the Corporate Responsibility Report for 2021~2022 (Apple, 2022). In addition to what we can all guess, there is one detail that deserves attention.
That is Apple’s rapidly advancing goal of becoming a “closed-loop manufacturer”. Nearly 20 per cent of the materials used in Apple products shipped in fiscal 2021 come from recycled sources (Apple, 2022).
Apple wants to build new phones and computers entirely from materials recycled from e-waste. To do this, Apple has embarked on a radical re-engineering of its underlying materials supply chain. In order to become a “closed-loop manufacturer ” (Gonios, 2021), Apple needs to create a “closed-loop supply chain of materials” and work with its wide range of suppliers and partners to increase the proportion of recycled materials used in Apple products. Theoretically, if Apple could close its “closed-loop supply chain” tightly enough – by recycling the products it sells – it could also reduce the impact of raw material price fluctuations.
However, the reverse logistics required in principle by the “closed-loop supply chain” – i.e. Apple’s mass recycling of its own products and their use in the production of new products – is not yet well developed. The progress Apple has made so far has been unsatisfactory. There are still many barriers to building the logistics of product recycling that have not been overcome (Wijayasundara, 2022). So the company is still a long way from being a strictly “closed-loop manufacturer”. Many observers believe that Apple’s ‘closed-loop manufacturing’ is still at a superficial stage. This is why many critics argue that Apple’s “closed-loop manufacturing” is a sham and that “greenwashing” is the real deal (Ragay, 2021).
However, we can also assume that Apple has contributed. Apple has also provided a model for the integration of electronics manufacturing into the circular economy. And It has technically explored the applicability of recycled materials in electronics manufacturing.
References
Apple, 2022. Annual Report on Corporate Social Responsibility (CSR) Activities FY20/21. [Online]
Available at: https://www.apple.com.cn/job-creation/Apple_China_CSR_Report_2022.pdf
[Accessed 15 10 2022].
Apple, 2022. Apple expands the use of recycled materials across its products. [Online]
Available at: https://www.apple.com/newsroom/2022/04/apple-expands-the-use-of-recycled-materials-across-its-products/
[Accessed 15 10 2022].
Gonios, N., 2021. How Apple Is Transforming Into a Closed Loop Product-As-A-Service Provider. [Online]
Available at: https://www.circulist.com/insight/apple-slow-journey-to-becoming-a-closed-loop-product-as-a-service-provider
[Accessed 15 10 2022].
Ragay, L., 2021. Apple’s 2030 Plan: Greenwashing or a Genius Plan?. [Online]
Available at: https://www.alittlebithuman.com/apples-2030-plan-greenwashing-or-a-genius-plan/
[Accessed 15 10 2022].
Wijayasundara, M., 2022. 5 barriers to using recycled materials to boost the circular economy. [Online]
Available at: https://igsmag.com/features/5-barriers-to-using-recycled-materials-to-boost-the-circular-economy/
[Accessed 15 10 2022].
I agree with the critics that it feels a bit like greenwashing. Creating a completely closed supply chain or product seems far fetched to me, especially in an industry that is innovating so quickly. Technology innovates so quickly that before a device can be recycled, a new version is already out, and one can only hope that the old parts can be reused. Moreover, it must be difficult, if not impossible, to verify and control whether every component they use is actually recycled. Will they buy back their own devices to ensure this? Are they also interested in other brands’ electronic devices? Either way, any attempt to reduce environmental pressure is certainly a good one. I think it is a great initiative and I hope Apple can implement it to the best of their ability and competitors will follow them.
Firstly, I want to thank you for your interesting post, I also agree that the idea for a closed supply chain is unrealistic with the possibilities we currently have. Using their own e-waste to create new products is certainly a good concept for both the environment and its resources. However, with the rapid improvements of technology and the never innovations, its askable whether the reused materials are sufficient enough to keep up with the future changes. As is well known, large companies tend to put themselves in a good light compared to competing companies, trying to give consumers the feeling that they are taking their needs into account. Whereby it could be said that Apple is engaging in “greenwashing” by this idea, to create a competitive advantage. None the less it would be great if Apple could close their supply chain as it would be very innovative.
Thank you for your post. Personally, I think Apple getting to the stage to aim for a ‘closed loop supply chain’ is a good thing. Apple is a very big player, so even a couple percentages higher in recycling reduces carbonization significantly. The company has the resources to invest in oppertunities like this, in which the company also can make money. However, it seems controversial given the fact that there are rumours that Apple is purposely letting batteries drain faster after updates, which increases the use of new components. In the end, I think that setting a closed loop supply chain up would take a long time given the fact that the company is not used to re-using older parts.
It is so interesting to see your post and get to know that Apple is getting the aim for a ‘closed loop supply chain’. Personally, I think Apple shared a large portion of the electronic devices market. Thus, it would be environmentally friendly to implement this plan. Also, for the consumers, I think this will also reduce the production cost and thus reduce the price of the iPhone. Absolutely, maybe it will reach a win-win situation. But on the other hand, I am still wondering how to deal with the batteries of iPhones as, usually, the batteries are the most difficult part to recycle. And also the batteries will cause most of the pollution to the environment.