Apple is creating a $300 million fund to build solar power in China (AAPL, DB)
- Apple wants its parts suppliers to use renewable energy, like it does at its stores and headquarters.
- So it’s investing in a $300 million fund along with its suppliers that will invest in new solar and wind projects in China.
- The fund will be managed by DWS Group, Deutche Bank’s asset management arm.
Apple is reaching into its cash pile to help spread solar energy and wind farms across China.
The iPhone maker has teamed up with 10 of its components suppliers to create a new $300 million fund that will invest in renewable sources of energy in China over the next four years.
The fund, called the China Clean Energy Fund, will be managed by DWS Group, Deutsche Bank’s asset management arm.
The idea is that the fund can invest in new power generators so that the companies that make parts for Apple — its suppliers — have better access to renewable energy sources. In China, where many of Apple’s suppliers are based, that means a lot of wind wind and solar.
Apple did not specify how much of the $300 million fund will come from its coffers and how much its 10 suppliers will contribute.
Apple is hoping the fund can help develop new renewable energy projects that don’t currently exist. Apple said that the projects it invests in will total more than 1 gigawatt of renewable energy.
Part of the reason for the fund is to help smaller companies that do work for Apple find clean energy. While a big supplier may be able to negotiate renewable cost-effective renewable energy deals, a smaller manufacturer may have less leverage.
That’s important as Apple said earlier this year that it wants its suppliers to run off of 100% clean energy. It announced in April that its own facilities were fully powered by renewable energy, including its headquarters, Apple Park, which has a 17-megawatt solar installation on its roof.
The Apple suppliers investing in the fund are:
NOW WATCH: Why penalty kicks are so unfair to goalies
Read the full article from it’s original source: http://uk.businessinsider.com/apple-300-million-fund-solar-power-china-2018-7