Apple (AAPL+0.75%) announced a new investment fund in China that will support its plans to transition to a 100% renewable energy supply chain by the end of the decade.
The company said it’s committed up to 720 million yuan ($99.3 million) for the second phase of its China Clean Energy Fund, which it first announced in 2018 with the aim of connecting Chinese suppliers with renewable energy sources. The initial commitment aimed for almost $300 million of joint investment between Apple and Chinese suppliers over four years.
The first fund “has exceeded its stated goal” by building more than 1 gigawatt of wind and solar projects in 14 Chinese provinces, Apple said. With the new investment, Apple said the Energy Fund plans to add about 550,000 megawatt-hours of wind and solar capacity annually.
“Our suppliers in China are driving world-class advances in smart and green manufacturing,” Apple COO Jeff Williams said in a statement. “We’re proud to deepen our collaboration with suppliers across China to drive innovation, opportunity and progress for our shared planet.”
The new fund, managed by British asset management firm Schroders, is another way for Apple’s suppliers and other Chinese companies to commit to renewable energy, “while also aiming to generate financial returns for investors,” the company said.
The second China Clean Energy Fund will support the company’s mission to reach carbon neutrality through its supply chain and product lifecycle, Apple said, adding that about two-thirds of its production in China currently relies on renewable energy.
Separately, Apple said in February that it plans to invest $500 billion over the next four years to support domestic manufacturing and artificial intelligence development in the U.S.
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