APPLE INC. | Report on Forced Labor at APPLE INC.

Status
33.71% votes in favour
AGM date
Previous AGM date
Proposal number
7
Resolution details
Company ticker
AAPL
Lead filer
Resolution ask
Report on or disclose
ESG theme
  • Social
ESG sub-theme
  • Modern slavery inc. forced labour
Type of vote
Shareholder proposal
Filer type
Shareholder
Company sector
Technology
Company HQ country
United States
Whereas clause
That shareholders of Apple, Inc. {Apple} ask the Board of Directors to oversee the preparation of a report, at reasonable cost and omitting confidential and proprietary information, on the extent to which Apple’s policies and procedures effectively protect workers in its supply chain from forced labor, including the extent to which Apple has identified suppliers and sub-suppliers that are at significant risk for forced labor violations, the number of suppliers against which Apple has taken corrective action due to such violations, and the availability and use of grievance mechanisms to compensate affected workers. The report should be posted to Apple’s website.
Supporting statement
Apple relies on over 200 suppliersl globally for product components. These suppliers and sub-suppliers may be at significant risk for forced labor if they have facilities in areas with a high risk of forced labor, or source inputs from such areas. Apple’s Code of Conduct {2005} lists forced labor as a ‘core violation’ of its policy, with suppliers required to ‘ensure that all work is voluntary’ and prohibited from traffic[king] persons or us[ing] any form of slave, forced, bonded, indentured, or prison labor.’ The Code also states suppliers must undertake due diligence and allow Apple access to their facilities to evaluate suppliers and sub-suppliers’ compliance.2 Apple’s Human Rights Policy {2020} states its desire ‘to be a force for good in the lives of people in our supply chain’, and asserts that Apple works ‘hand in hand with our suppliers to ensure that every workplace provides a safe and respectful environment for everyone’.3 It has been reported that at least nine4 companies in Apple’s supply chain participate in the government of China’s forced labor program. Reports suggest that Apple severed ties with Ofilm Group over allegations that it’s involved in that program. Following evidence since 20l7 of millions of Uyghurs and other Turkic Muslims being forced into internment camps and related labour programs,5 the Parliaments of the UK and Canada and the US State Department recognized this as a genocide.6 US Congress is actively working to pass legislation to create a ‘rebuttable presumption’ that goods from the Uyghur region are made with forced labor and will be prohibited from entering the US unless ‘clear and convincing’ evidence can be shown to the contrary.7 The proposed report is intended to mitigate this regulatory risk, given Apple’s dependence on suppliers operating under a government accused of genocide. We urge shareholders to vote for this Proposal.

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