Is Apple’s First ‘Carbon Neutral Product’ the Real Deal or Just Another Case of Corporate Greenwashing?

🍏 Apple recently released their latest Apple Watch as their "first-ever carbon neutral product". This has since been critiqued by many, including Monique Goyens, the director-general of BEUC, the European consumer organisation, who stated that Apple’s claim is "scientifically inaccurate".

🇪🇺 The EU's Green Claims Directive is increasingly setting the standard for what can and cannot be claimed in corporate sustainability communications in an effort to clamp down on 'greenwashing'. (See my previous post on it here: https://lnkd.in/e6ZdYhXP). The Directive aims to eliminate misleading environmental claims, and the EU have announced plans to ban such 'neutrality' claims that rely on the purchase of carbon credits by 2026.

🔍 Apple’s recent assertions of 'carbon neutrality' for its latest Watch is drawing scrutiny and highlights the complex landscape of corporate carbon accounting. Below are some of the issues with their claims as well as what they are doing well:

❌ Quality of Carbon Credits: Apple are currently relying solely on lower-permanence CDR which is not in line with the “like for like” principle. They should adopt a portfolio with a preference for durable CDR, thereby ensuring that their fossil fuel emissions are compensated with durable CDR.

❌ Renewable Energy Claims: Assertions by Apple of using “100% clean electricity” for manufacturing are contested, considering low renewable electricity shares among its major suppliers.

✔️ Public Claims: Apple is putting itself out there in a way few other corporates have done. Their CEO, Tim Cooke is personally standing for their green claims - a level of corporate accountability unseen before.

✔️ CDR Funding: Apple is going to be channeling a lot of money to CDR - almost exclusively nature-based solutions - and this is already way more than what the vast majority of companies are doing.

⏰ The Apple case serves as a wake-up call for businesses. As the EU’s Green Claims Directive gains traction, businesses will need to adjust their sustainability reporting and marketing communications to align with stricter regulations. Stakeholders across the board, including investors, regulators, and consumers, are demanding greater clarity and honesty in environmental claims.

🎉 I, for one, am looking forward to this new era of increased transparency, pushing corporations towards more robust credits and doing better. High-quality, permanent CDR will reduce risks for businesses and appear as the most attractive option to substantiate green claims.

What's your take on Apple’s claims? Corporate sustainability role model or greenwashing?