Apple Confidential–Internal Use OnlyApple Confidential–Internal Use Only

Guiding Supply Chain Water StewardshipWorld Water Week 2019

August 26, 2019

“We believe that business, at its best, serves the public

good, empowers people around the world, and binds us together as never before.”

Tim Cook

Labor Human Rights Environment Health and Safety

Apple’s Supplier Code of Conduct

supplier sItes

engaged

39%participating Supplier

reuse rate in 2018

116 25B gallons saved

to date

7.6Bgallons freshwater

savings 2018

Apple’s Supply Chain Clean Water Program

2018 Two Certified Factories,

First Gold Certified Factory in Electronics

Advancing Adoption of Water Stewardship

Importance of Developing a Water Footprint

Water Stewardship | Going beyond the factory walls

Water Stewardship | Going beyond the factory walls

Display Enclosure Camera Battery Packaging Board

Electrical’s Integrated

Circuits Glass Silicon

Assembly

Leading the Movement to Water Stewardship

Raise awareness to the standard in Asia Pacific

Digitize and automate the certification process

Certify Apple Suppliers to the AWS standard

AWS and the AWS Standard

A DIVERSE ALLIANCE WITH A COMMON GOAL

Foundation: multi-stakeholder governance

Members are from Business, Public Sector & Civil Society | Global, National, & Local

Our Mission:

We ignite and nurture global and local leadership in credible water stewardship that recognizes

and secures the social, cultural, environmental and economic value of freshwater

OUR JOURNEY TO-DATE

Phase 1: AWS Standard

System Development

2008 2009 2010 2011 2012 2013 2014 2015

Phase 2: AWS Standard

System Implementation

2016 2017 2018 2019

Corporate commitments to AWS Certification

Standard revision process

PRIVATE SECTOR - BRANDS

NGOs - OTHER STANDARD

SYSTEMS

PUBLIC SECTOR NGOs - BRANDS

PRIVATE SECTOR –

SERVICE PROVIDERS

Selected members

AWS: GLOBAL MEMBERSHIP

A COMMON DEFINITION OF WATER STEWARDSHIP

The use of water that is:-

− socially equitable

− environmentally sustainable

− economically beneficial

achieved through a

stakeholder-inclusive process

that involves

site and catchment-based actions

3rd party certification

Credible claims

Catchment impacts

THE AWS STANDARD V2.0

AWS CERTIFICATION SNAPSHOT

~40 certified

~80 registered

~100 pipeline

IMPLEMENTER IDENTIFIED BENEFITS

Site:

- Increase efficiencies

- Enable risk mitigation

- Grow staff capacity & motivation

- Strengthen stakeholder relationships

- Build and grow community trust

Catchment:

- Improve local water quality and availability

- Protects socially and culturally important water-related areas

- Drives local collaboration

- Supports knowledge sharing

- Strengthens multi-stakeholder governance

Corporate:

- Understand sites’ risks

- Common approach across whole business

- Credible independently verifiable claims

- Contribute to CDP & other disclosures

- Support CSR activities

- Reinforces brand credentials

MORE THAN JUST A STANDARD

- Training & capacity building

- A common language for water stewardship

- Enabling member collaboration

- Facilitating learning, dialogue and knowledge sharing

- Advancing awareness of water stewardship

- Discrete projects

- Sector engagement

Learnings from AWS Implementation in China

•AWS Foundation and Advanced Training to Core Team

•Self-assessment

Our Approach

•Site Kick-off and Gap Assessment

•Action Plan and Implementation

•3rd Party Audit

•Implementation Tools, Templates and Examples

•Good Practice Catalogue

• 3 AWS training sessions

• 63 participants from 20 companies

• 2 sites certified in 2018

• 3 sites on-track to be certified this year

• 7 sites conducted gap assessment

• 2 network meetings

• 26 organisations participated

• 2 catchment studies

Program Key Figures - 2018 ~ 2019 Aug.

Driving Changes

Typical Suppliers

CWP Graduate

AWS Core

AWS Gold

Level of Sustainability in Water Management

Nu

mb

er

of

Sit

es

A Site’s Typical AWS Journey

April

AWS 2-day Training

May

Kick-off & Gap Assessment

Jun

Action Plan

- Catchment study

- Stakeholder & Supply chain

- New procedures, policies and plans

Sept

Pre-audit (not a must)

- Leadership Commitment

- Project Implementation

- Communication & Disclosure

Dec

Final Audit & Certificate

New Year

Maintain System

Experience Sharing

Nov

Public Consultation

Activities & Outcomes

Site Level Activities

Community Engagement200+ People Reached

Water Quality Monitoring Beyond the Factory Fence

9 Primary Suppliers Engaged in Water Usage and Risk Survey

Activities & Outcomes

Site Level Improvements

8 Stakeholder Consultation Meetings Organised or Attended

10+ Groups of Visitors to the Site and Experience Sharing

Environmental and Water Information Disclosure

Quarterly Gathering

Water Stewardship China Network

– International NGOs

– Local NGOs

– Water Utility Operator

– Global Brands / MNCs

– Local Companies

– Consultants

– Financial Institutes

Sept. in Zhejiang

Dec. in Nanjing

Learnings:Earlier Adopters

“It was very challenging to obtain catchment info at the beginning. We also didn’t know how to reach consensus with certain stakeholders.”

Site Manager

“Learning about catchment context is key for us to understand government long-term vision and

foresee policy trend.”

Site Manager

“Taking the initiative to meet with stakeholders and listening to their ideas helped to avoid community conflicts and get more brand

recognition.”

Site Manager

Learnings:Other Partners

“Companies need to look long-term and have a feeling of a community with shared future. We also introduced

designated incentive policy to reward leaders and hope to accelerate the transformation”

Local Environmental Protection Official

“Kunshan shows a great example when various programs joining forces to promote water stewardship, build local

capacity, develop pilot case and drive policy change.”

WWF China

Learnings:Apple and AWS AP

•What’s unique about this sector and China?

•Have we found a model to scale up at catchment level to achieve visible impacts?

•Have AWS Standard proven to be relevant?

•What’s the remaining gap?

Key Learnings

Apple Confidential–Internal Use Only

New Tools and Learning Platform

1. SECTOR LEADERSHIP

2. PRACTICAL SUPPORT

3. EVIDENCE

WHY COLLABORATION WITH APPLE MATTERS

SECTOR LEADERSHIP

SECTOR LEADERSHIP

PRACTICAL SUPPORT

EVIDENCE

Global Water Stewardship Forum

November 12-13, Edinburgh

SUMMARY

- AWS offers a clear pathway to improved water stewardship

- Pathway provides opportunities for leadership and collaboration

- Our collaboration with Apple will help others on their water stewardship journey

Apple Confidential–Internal Use OnlyApple Confidential–Internal Use Only

Q&A Session

50

Compliance Clean Water Program AWS

PermitExecutive

Sponsorship

Assessment

Sampling

Water

Balance

Engagement

Reporting

Program

Graduation Certification