Apple extends checks on Chinese suppliers

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Apple extends checks on Chinese suppliers

By Kathy Chu
Updated

HONG KONG: Apple has told a prominent Chinese environmental activist that it will soon launch independent environmental audits of at least two suppliers' factories in China, the activist said.

The audits come as Apple faces mounting criticism about toxic pollution and factory injuries at overseas suppliers' factories. The environmental reviews would be separate from an independent probe of working conditions at the China factories of Apple suppliers, including Foxconn Technology, that began last week.

Workers are seen inside a Foxconn factory in the township of Longhua in the southern Guangdong province.

Workers are seen inside a Foxconn factory in the township of Longhua in the southern Guangdong province.Credit: Reuters

Ma Jun, the founder of The Institute of Environmental and Public Affairs, said Apple agreed to the independent audits late last month in response to two reports that the institute and other environmental groups released last year documenting hazardous waste leaks and the use of toxic chemicals at suspected Apple suppliers.

The audit, which could begin next month, will start with two suppliers, but might expand to others, said Mr Ma, one of China's leading environmental activists.

The audits will focus on environmental issues, including whether Apple suppliers are discharging toxic waste into the water supply and soil. Mr Ma's group in Beijing and other members of the Green Choice Alliance, a coalition of 41 Chinese organisations, will participate in the investigations, to be conducted by a professional auditor.

Apple has long conducted internal audits of suppliers. But an independent review is necessary to "make sure that the audit is done in a transparent way", said Mr Ma, whose group has met and had calls with Apple half a dozen times since mid-September.

An Apple spokeswoman, Carolyn Wu, declined to comment. Apple says on its website that it insists that suppliers "provide safe working conditions, treat workers with dignity and respect, and use environmentally responsible manufacturing processes".

The environmental audit reports, when released, will disclose the names of the suppliers examined after they've been given an opportunity to fix any problem identified, Mr Ma said. Of the two dozen suspected Apple suppliers named in the reports last year, Apple has confirmed it works with at least seven: Foxconn Technology, Meiko Electronics, Unimicron, Ibiden Electronics, Wintek, Nan Ya Printed Circuit Board and Compeq Manufacturing.

Apple also plans to use a pollution database that the Institute of Environmental and Public Affairs has on its website, containing records of more than 95,000 environmental violations by Chinese suppliers, to monitor existing suppliers and check on new ones, Mr Ma said.

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The institute's report last August detailed how Meiko Electronics' factory in Wuhan, in central China, discharged large amounts of waste into surrounding rivers and lakes. A chlorine accident at Meiko Electronics in 2008 also led to the poisoning and hospitalisation of 18 workers, according to the report. Meanwhile, residents in Kunshan, in eastern China, complained that they couldn't open their windows because of fear they would choke on acid gas and dust from another supplier, Unimicron.

Apple's decision to launch independent audits at its overseas suppliers is a move in the right direction for Chinese workers who tend to face harsh working conditions and low pay, according to Gary Liu, deputy director of the China Europe International Business School's Lujiazui International Finance Research Centre.

"Apple now realises that its brand name will suffer if it continues to be blind to the misbehaviours" of suppliers, said Mr Liu.

The development could increase pressure for improvements at other Chinese suppliers. Apple joins Adidas, Nike, Patagonia and others that have supported such monitoring to improve labour conditions in contract plants.

Apple's size gives it a leadership role among US companies: "If Apple doesn't change, then it could serve as a very bad model for other companies," Mr Ma said.

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