Ecopledge and Green Century Applaud Apple's Plan For Free iPod Recycling
New program will encourage recycling, reduce toxic waste, and potentially drive increased sales
For Immediate Release: June 3, 2005
Apple Computer announced today that it would begin offering free recycling of iPod music players at its retail stores around the country. iPod owners who bring their old units to the stores will receive a 10% discount on the same-day purchase of a new iPod.
"We're very happy to see Apple take this step," said Andrew Shalit, an environmental advocate at Ecopledge. "As environmentalists, we know that it will reduce the amount of toxic waste in our landfills and help consumers understand that electronics manufacturers can and should take responsibility for e-waste. For the company's shareholders, we see it as a way to increase foot traffic in Apple Stores and increase iPod sales."
This step was specifically requested at Apple's annual shareholder meeting in April by a representative of Green Century Capital Management, an environmental investing firm working in close partnership with Ecopledge. At the time of the meeting, Apple Chairman and CEO Steve Jobs responded by dismissing the problem. Both Ecopledge and Green Century view today's announcement as a sign that the computer company is beginning to take the issue more seriously.
The move comes in the wake of an ongoing campaign by environmental groups and shareholder activists calling on Apple to take more responsibility for the disposal of the electronic goods that it produces. During Apple's annual meeting, members of the Computer Takeback Coalition released a report detailing the shortcomings of Apple's recycling policies. Inside the meeting a representative of Green Century Capital Management read a prepared statement (attached) and requested free, in-store recycling.
Electronic waste, also known as e-waste, cannot be dumped in landfills because of its toxic components. The cost of safely disposing of e-waste is currently borne by municipalities around the country, which often pass the cost onto residents in the form of a hefty disposal fee.
While positive, Apple's new program does not fully address the company's e-waste problem. Pound-for-pound, computers and monitors comprise the vast majority of Apple's production of electronic goods. Activists and shareholders will continue to press Apple to expand its free recycling programs to cover computer equipment as well as mp3 players, and to offer free and convenient recycling to consumers who do not live near an Apple Store.
"Apple has been trying for years to get people to switch from Windows PCs to its Macintosh computers," Shalit said. "What better way to do this than to take their old PC's off their hands, and give them a discount on a new Mac at the same time? We'd like to see them offer this around the country with an initial focus on the Apple Stores."
###
Ecopledge is a public interest organization that focuses on improving corporate environmental practices. It engages in shareholder advocacy in partnership with investment adviser Green Century Capital Management, Inc.
Green Century Capital Management, Inc. administers the Green Century Funds, the first family of no-load, environmentally responsible mutual funds.
###
Statement of Rachel Gibson, representing Green Century Capital Management, at Apple Annual Shareholder Meeting, April 21, 2005.
My name is Rachel Gibson and I am here today representing the Green Century Capital Management. Green Century is an environmentally responsible investment company; Green Century investors want to support companies that are good stewards of our environment, both because this is the right thing to do and because they believe that this will enable businesses to perform better over the long term. Green Century is concerned that our company's policies on e-waste and recycling may fall short of this standard.
Apple has long been a leader in technological innovation. This leadership has earned the company significant brand loyalty from consumers. Apple's failure to act decisively on this issue creates the risk that its consumers will begin to view the company as a polluter; this could lead them to turn their backs on the company.
Like all computer and electronics manufacturers, our company's products contain many toxic chemicals that can cause significant environmental damage and serious health problems. Despite this, our company has not acted as aggressively as others in the industry in seeking to ensure that its products are responsibly disposed at the end of their useful life. Whereas Dell and HP offer programs for consumers to recycle old equipment free of charge, Apple's program charges consumers $30 and thereby discourages the responsible disposal of its products. Whereas Dell and HP have set goals for their recycling programs and reported publicly on their progress, Apple has not communicated effectively on this issue with its shareholders or the public.
This issue need not be a risk for Apple, though. It can be an opportunity as well. A strong recycling program would enable Apple to burnish its image as an environmentally responsible company. It would also assist the company in gaining new customers. For example, by offering free recycling at Apple Stores, we could provide another incentive to potential switchers [from Windows PC's]. This is just one idea that Apple could use to turn the recycling challenge into an opportunity; I'm sure if Apple's best and brightest set their minds to it, they could generate hundreds more.
My question is this: Given the risks and the opportunities posed by the issue of recycling, why not take leadership in developing innovative solutions to ensure that all of our products are disposed of responsibly? And why not start by disclosing information on the results of our current program and setting goals for the future?
