---

No identification of any specific incidents related to modern slavery that required remediation, though did include historical analysis of MSA.

---

We encourage workers to report any

retaliation to us, and we, along with our third-party audit partners, follow up with all suppliers

to address any reported issue. In 2018, nearly 36,000 phone calls were made to workers to

ensure that they were not retaliated against for sharing a concern. We also have an internal

system that enables our employees to alert Apple if they perceive an issue within their office,

or if they visit a facility and see or hear something of concern. Following each submission,

Apple investigates the reported issue to determine whether the report identifies a violation

of our Supplier Code and Standards. In 2018, 17 incidents were reported and investigated,

with the SR team following up on each within 24 hours.6

---

If a supplier is unwilling

or unable to meet our requirements, the supplier risks being removed from Apple’s supply

chain. To date, 20 manufacturing supplier facilities have been removed from our supply

chain. Smelters and refiners deeper in our supply chain are held to similar standards

and if they exhibit a lack of commitment to meet our Supplier Code and Standards, they

risk losing Apple’s business. In 2018, five tin, tantalum, tungsten, and gold, and two cobalt

smelters and refiners were removed from our supply chain. The names of these suppliers

have been included on a “Do Not Source List” that is published on an internal website

available to Apple employees.4

---

In 2018, two cases of debt-bonded labor were uncovered

in Japan at two supplier sites. In each case, the supplier was required to repay all fees to

their impacted employees. A total of US$616,000 in recruitment fees was repaid to

287 supplier employees. 7