Apple Inc. (AAPL) has announced a plan to become carbon neutral across all of its company divisions by 2030.
The tech giant stated that it is already carbon neutral for its corporate division and that by expanding the 10-year plan to the entirety of the company, it will also apply to every device that it produces.
In a July 21 press release, Apple CEO Tim Cook said, “Businesses have a profound opportunity to help build a more sustainable future, one born of our common concern for the planet we share.” He added, “Climate action can be the foundation for a new era of innovative potential, job creation, and durable economic growth. With our commitment to carbon neutrality, we hope to be a ripple in the pond that creates a much larger change.”
Apple says that it will invest in other businesses with an Impact Accelerator that calls for initiatives to “drive positive outcomes in its supply chain and in communities that are disproportionately affected by environmental hazards.” The investment will come from Apple’s $100 million Racial Equity and Justice Initiative that was announced last month.
“Systemic racism and climate change are not separate issues, and they will not abide separate solutions. We have a generational opportunity to help build a greener and more just economy, one where we develop whole new industries in the pursuit of giving the next generation a planet worth calling home” commented Apple VP of Environment, Policy, and Social Initiatives Lisa Jackson.
The iPhone maker is also providing guidance to other companies by offering a roadmap which it outlines in its 2020 Environmental Progress Report. The plan calls for a reduction in emissions by 75% while the remaining 25% would be for developing innovative carbon removal. It also outlines goals such as low carbon product design, carbon removal expanding energy efficiency, renewable energy, in addition to process and material innovations.
Apple’s call for change in corporate environmental policy comes at a unique crossroads where many computer and smartphone manufacturers are preparing for the deployment of new 5G technology. The technology is expected to be in Apple’s upcoming iPhone device later this year.
Canaccord Genuity analyst Michael Walkley said on July 16 that “Apple is well-positioned to benefit from the long-term 5G investment cycle.” He added, “The installed base of users grows, and ecosystem service and adjacent hardware sales benefit.” He reiterated a Buy rating on the stock and raised his price target from $310 to $444 which implies 14% upside potential.
Overall, 25 analysts assign Buy ratings, 6 Hold ratings, and 1 Sell rating, giving AAPL a bullish Strong Buy Street consensus. The average analyst price target stands at $368.19 suggesting 6% downside potential, with shares already up 33% year-to-date. (See Apple’s stock analysis on TipRanks).
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