Two months ago Apple announced 96% of its worldwide energy now comes from renewable sources and also pledged to reach 100% by getting its supply chain to invest in renewable energy. Today Apple has announced it is issuing a $1 billion green bond to further its renewable initiatives.
As reported by Bloomberg, last year Apple offered the largest green bond in U.S. corporate history at $1.5 billion. Now, just about two weeks after President Trump decided to withdraw the United States from the Paris climate agreement, Apple has issued another $1 billion bond to help move the company and its supply chain to 100% renewable energy.
An unnamed source provided detailed projections about the bonds:
The bonds, maturing in 2027, will yield 95 to 100 basis points more than Treasuries, according to a person with knowledge of the matter, who asked not to be named because the deal is private. They are expected to be rated Aa1, the person said.
Deciding to offer bonds for its sustainability plans means Apple won’t have to dip into its offshore cash. Here is how the company will be spending some of the resources on green efforts:
The company is investing in solar energy, hydroelectric plants and biogas facilities in Oregon, North Carolina, Nevada, Arizona and California, including $850 million on a 130-megawatt solar farm near San Francisco over the next quarter century, and has received permission to sell power to the wholesale energy markets.
Tim Cook urged President Trump along with many other tech industry leaders to keep the U.S. committed to the Paris climate agreement. After President Trump decided to withdraw, Tim Cook shared an email with Apple employees sharing frustration and disappointment about the choice, and also reaffirmed Apple’s position on climate change and sustainability.
Climate change is undeniable. Earth’s resources won’t last forever. And technology must be safe for people to make and use. We don’t question these realities — we challenge ourselves to ask what we can do about them in every part of our business.
In addition to today’s green bond, Apple has increased its focus on environment and commitment to sustainability this year with a pledge to stop mining the earth, a series of educational and humorous Earth Day videos, and Tim Cook and Lisa Jackson taking many opportunities to discuss the topic.
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