IPhone Assembly Booms in India, But Apple's Suppliers Lag on Renewable Energy Targets

Apple has set a target to slash its Scope 1, 2, and 3 emissions by 75% by 2030, measured against a 2015 baseline, and it requires all suppliers and assembly facilities to transition to 100% renewable electricity by that year.

These scopes encompass the full spectrum of a company's greenhouse gas emissions: direct operations (Scope 1), purchased energy (Scope 2), and the broader value chain, including suppliers and end-user product consumption (Scope 3).

During fiscal year 2024, India accounted for 20% of global iPhone assembly, a proportion projected to rise further. Yet, the study titled “Greening India’s Apple” highlights scant headway in renewable energy (RE) uptake among 13 key Apple suppliers operating in the country.

“Only 2 out of 13 Apple suppliers with manufacturing units in India have reported the use of RE in their sustainability reports,” noted Simran Kalra, the report's lead author. “This is a far cry from Apple's goal of 100% RE use in its supply-chain by 2030.

Suppliers are also lagging in energy data monitoring and verification. Addressing these gaps is essential to make Apple’s Scope 3 emissions reporting accurate and credible.”

Among the 13 suppliers producing for Apple in India, just FIH Mobile Ltd.—a subsidiary of Foxconn—and Flex Ltd. have sourced RE via effective methods such as Power Purchase Agreements (PPAs), on-site solar installations, and bundled retail power. FIH powered 35% of its operations with RE in 2024, while Flex achieved 27.5% in both 2023 and 2022, according to their respective sustainability disclosures.

The other 11 suppliers either reported zero RE usage in their Indian facilities, relied on low-value energy certificates, or provided no details on RE sourcing for these sites.

Tata Electronics touts carbon neutrality, but this relies solely on acquiring low-impact International Renewable Energy Credits (i-RECs). True reductions in India's grid emissions occur only when fresh renewable capacity replaces coal-fired power at the margins.

Strategies like RE PPAs directly support this transition, whereas REC purchases leave fossil fuel generation and usage unchanged, rendering them low-impact for decarbonization purposes.

The analysis drew from the most recent public sustainability reports, climate strategies, and Carbon Disclosure Project (CDP) submissions from Apple and its Indian suppliers. It further revealed that 10 of these 13 suppliers are located in regions boasting robust open access provisions and rapid green energy expansion, including Tamil Nadu, Karnataka, and Maharashtra.

Nevertheless, these firms are failing to leverage available open access RE, underscoring a critical shortfall in Apple's efforts to green its supply chain.

On a worldwide scale, Apple has cited ongoing drops in its market-based emissions, crediting supplier adoption of clean energy. The report counters this by pointing out that over 50% of global supplier RE sourcing in 2023 and 2024 involved low-impact, opaque tools like unbundled RECs.

To bridge these issues, the report urges Apple to steer suppliers toward robust RE acquisition options, such as extended-term PPAs or self-generated/on-site renewables, over detached RECs.

It also calls for Apple to enforce thorough energy data tracking and third-party audits across all manufacturing locations. While Apple has funded fresh RE projects in other nations to aid supply chain emissions cuts, no such initiatives have materialized in India.

“Apple’s choice of India as a manufacturing hub is an excellent move, but the lacklustre performance of its suppliers on the RE front is worrying. Apple needs to ensure its Indian suppliers are on track to meet the 2030 100% RE goal.

This is eminently feasible given India’s vibrant RE ecosystem, but it does need Apple, their suppliers and local discoms to address the issue proactively,” remarked Ashish Fernandes of Climate Risk Horizons.