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1、IBM Impact 2022 ESG Report 2 IBM 2022 ESG Report About this Report This report covers our progress and performance in 2022.We conduct regular impact assessments to inform our Environmental,Social and Governance(ESG)strategy and to identify which topics are important to our stakeholders.The content o
2、f this report is informed by collaboration and engagement with communities,clients,stockholders,and employees,and considers frameworks and initiatives such as the Global Reporting Initiative(GRI)Standards,the Sustainability Accounting Standards Board(SASB),the Task Force on Climate-Related Financial
3、 Disclosures(TCFD),the Stakeholder Capitalism Metrics,and the United Nations Sustainable Development Goals(SDGs).IBMs GRI Index and SASB Index can be found on our IBM Impact site.Our impact assessments are solely intended to reflect priority ESG issues and should not be construed as a characterizati
4、on regarding the materiality of such information to IBMs business or operating results.These assessments are not a determination of“materiality”as the term is defined in securities or other laws of the United States or other jurisdictions,nor its use in the context of financial reporting.We regularl
5、y refresh these analyses to capture changing circumstances and to adopt a more dynamic approach to identifying key ESG topics.Except where noted,the presented data excludes Red Hat.On November 3,2021,the company completed the separation of its managed infrastructure services unit.Accordingly,unless
6、otherwise noted,the 2021 information presented in this report includes 10 months of activity related to the managed infrastructure services business,and therefore may not be comparable to 2022 information.To the extent any historical information is updated or recast,the information will be disclosed
7、 accordingly.In June,we will publish an addendum inclusive of year-end 2022 progress against our renewable electricity procurement and operational GHG emissions reduction goals and our 2022 GHG emissions inventory.The 2022 ESG Report Addendum will be available on our IBM Impact site.Our 2022 greenho
8、use gas(GHG)emissions calculation process and underlying data is subject to an external limited assurance audit.Information about our business and financial performance is provided in the 2022 IBM Annual Report.Forward-Looking and Cautionary Statements Any forward-looking statement in this report sp
9、eaks only as of the date on which it is made;IBM assumes no obligation to update or revise any such statements except as required by law.Forward-looking statements are based on IBMs current assumptions regarding future business and performance;these statements,by their nature,address matters that ar
10、e uncertain to different degrees.Forward-looking statements involve a number of risks,uncertainties and other factors that could cause actual results to be materially different.Contents Governance Introduction Social Environment Appendix Appendix 3 IBM 2022 ESG Report Contents Introduction Introduct
11、ion Letter from Our Chairman and CEO.5 Our ESG Commitments.7 Accountability for ESG at IBM.8 Human Rights at IBM.9 Ethical Impact Governance Corporate Governance and the Board.11 Business Ethics.15 Responsible Technology.16 Policy Advocacy.19 Equitable Impact Social Our Culture.22 Supporting Our Emp
12、loyees.23 Diversity and Inclusion.26 Community Development.32 Supply Chain Social Responsibility.35 Environmental Impact Environment Global Environmental Management System.41 Energy and Climate Change.42 Conservation and Biodiversity.45 Pollution Prevention and Waste Management.46 Supply Chain Envir
13、onmental Responsibility.49 Solutions for Sustainability.50 Appendix Appendix Awards and Recognition Highlights.52 Top Suppliers.53 Contents Governance Introduction Social Environment Appendix Appendix 4 IBM 2022 ESG Report Introduction Contents Introduction Governance Social Environment Appendix 5 I
14、BM 2022 ESG Report Arvind Krishna Chairman and Chief Executive Officer Letter from Our Chairman and CEO IBMers have always aspired to make a lasting,positive impact on the world both internally,and in our work with clients and partners.We have a strong heritage of aligning business goals with broade
15、r ethical,equitable and environmental impact.This is another critical way we fulfill our mission to be the catalyst that makes the world work better.As a company that works in almost every industry and every sector,the trust that our clients place in us is incredibly important.When it comes to deplo
16、ying transformative technologies like artificial intelligence,trust is paramount.The advent of foundation models and large language models has generated tremendous interest in AI,making the technology faster,more accessible and powerful to use than ever before.At the same time,we must take every nec
17、essary measure to ensure that AI is used ethically and equitably to benefit society.This IBM Impact report documents how we are accomplishing this while leading with ethics,transparency and trust;promoting diversity,equity,and inclusion;and helping the environment.Ethical Impact IBM has for decades
18、followed core principles grounded in commitments to Trust and Transparency that guide our handling of client data and insights and the responsible development and deployment of new technologies.We have also created a number of tools to help ensure that AI systems are fair,robust,explainable,accounta
19、ble,and aligned with the values of the society for which theyre designed.Examples include IBM Design for Sustainability,IBM OpenPages with Watson,IBM Watson Knowledge Catalog,and IBM AI FactSheets.In 2022,we trained over 1,000 ecosystem partners in technology ethics,surpassing our initial commitment
20、,and we have launched a new commitment to train 1,000 technology suppliers in tech ethics over two years.Together with academic partners,the Notre Dame IBM Tech Ethics Lab launched 27 projects related to the ethics of technology and convened a Global University Summit to discuss how the principles o
21、f the Rome Call for AI Ethics might be put into practice.Equitable Impact In 2022,we saw a year-over-year increase in overall representation for women globally,and Black,Hispanic,Native American,and Pan-Asian communities in the U.S.To help ensure an inclusive workplace,IBMs Global Real Estate and Di
22、versity&Inclusion teams collaborated with employees around the world on design features to make our facilities more accessible,welcoming,and productive for IBMers and our clients.As part of our efforts to develop multiple pathways to employment,we have committed to investing$250 million in skills-fi
23、rst training like our apprenticeship program.We have hired over 900 apprentices through our U.S.apprenticeship program,with more than 90%of past program graduates becoming full-time IBM employees.Two years ago,we launched a global plan to provide 30 million people with new skills needed for the jobs
24、 of tomorrow by 2030.We have made significant progress toward this goal,with over 7 million learners enrolled in IBM courses.We also continue to advance our goal of having 15%of IBMs first-tier diversity spending with Black-owned suppliers by 2025.Environmental Impact IBM was proud to be named techn
25、ology partner of the 2022 United Nations Climate Change Conference,or COP27,where we showcased how our technology and expertise are helping business and government align sustainability goals to organizational objectives.That includes using Envizi and our Environmental Intelligence Suite to help clie
26、nts understand and mitigate risks from climate change.With the latest IBM z16 and IBM LinuxONE Rockhopper 4 systems,we are delivering security and performance while helping clients of all sizes save on data center space and energy consumption.IBM was proud to be recognized by Boston Consulting Group
27、 and TIME Magazine for helping clients turn their sustainability ambitions into actions.We are also making progress towards our goal of net-zero operational greenhouse gas emissions by 2030.In 2021,we reported a 61.6%reduction of emissions since 2010.Over the last two years we completed a total of 1
28、,455 energy conservation projects.As a result of conservation projects implemented in 2022,we avoided 71,000 MWh of energy consumption and 25,600 metric tons of CO2 emissions.We also diverted 93.8%(by weight)of IBMs total nonhazardous waste from landfill or incineration.Last year we held our first a
29、nnual Supplier Sustainability Leadership Symposium to promote energy efficiency.I invite you to read more about our efforts in this comprehensive report.While we are proud of the progress we have made,we are mindful that advancing our environmental,social and governance goals is a continuous journey
30、 of improvement.I am always inspired by IBMers constant dedication to this essential work and their pursuit of a better future for all.Arvind Krishna Chairman and Chief Executive Officer Contents Introduction Governance Social Environment Appendix IBM Impact 6 IBM 2022 ESG Report Ethical Impact Crea
31、ting innovations,policies,and practices that prioritize ethics,trust,transparency,and above all-accountability Environmental Impact Creating better pathways to conserve natural resources,reduce pollution,and minimize climate-related risks Equitable Impact Creating spaces and opportunities for everyo
32、ne by focusing on diversity,equity and inclusivity within IBM,as well as globally Contents Introduction Governance Social Environment Appendix ESG at IBM IBM is focused on the challenges and complexities facing todays world.Our ESG reporting embodies this philosophy through three pillars.Environment
33、al Impact Reach net-zero operational greenhouse gas emissions by 2030 Commitment in progress We will provide an update on our progress towards our net-zero operational greenhouse gas emissions commitment in our 2022 ESG Report Addendum that will be available on the IBM Impact site in June.Divert 90%
34、(by weight)of IBMs total nonhazardous waste from landfill and incineration by 2025 Achieved annual target in 2022 In 2022,we diverted 93.8%(by weight)of our total nonhazardous waste from landfill and incineration.We are working to reduce the amount of diverted waste sent to waste-to-energy processes
35、 from the 11.9%(by weight)achieved in 2022 to less than 10%.Document 100 client engagements or research projects in which IBM solutions have enabled demonstrable environmental benefits by 2025 Commitment in progress Since January 2021,we have documented 40*such engagements or projects.*Results inclu
36、sive of Red Hat Equitable Impact Ethical Impact with Black-owned suppliers.In 2022,6.9%of our first-tier supplier diversity spend was Commitment in progress Commitment in progress Commitment in progress New commitment in 2023 7 Contents Introduction Governance Social Environment Appendix Our ESG Com
37、mitments Our commitment to creating Ethical Impact,Equitable Impact,and Environmental Impact includes targets.Updates through the end of calendar year 2022 for those targets are as follows:Include technology ethics education in training for IBM ecosystem partners,reaching 1,000 partners by end of 20
38、22 Achieved by target date We exceeded our target to train 1,000 ecosystem partners in technology ethics in 2022.Train 1,000 technology suppliers in technology ethics by 2025 Annual Incentive Program includes a modifier to drive accountability in improving executive diversity representation Commitme
39、nt in progress While executive representation of women globally,as well as Black and Hispanic executives in the U.S.,excluding Red Hat,improved by 0.3 points,0.7 points and 0.3 points,respectively in 2022.This improvement did not increase the incentive score.The executive incentive program will cont
40、inue to include a diversity modifier and our goal remains to close the gap in executive representation in these key areas.Engage 100%of suppliers on sound practices including social and environmental responsibility,ethics,and risk planning Skill 30 million people globally by 2030 Commitment in progr
41、ess Since January 2021,over 7 million*learners have enrolled in IBM courses.$250 million investment in apprenticeship and new-collar programs by 2025 Log 4 million volunteer hours by 2025 Commitment in progress Since January 2022,IBMers logged over 437,000*volunteer hours towards our goal.15%of firs
42、t tier supplier diversity spend from Black-owned suppliers by 2025 IBM 2022 ESG Report Committee Responsibilities Members IBM Board of Directors The Board and its committees have oversight responsibility for ESG-related matters and are continuously engaged with senior management on risk management a
43、nd activities,policies,and progress towards our ESG goals.The Audit Committee:Oversees financial and audit risks identified through IBMs enterprise risk management framework,including those related to cybersecurity,in addition to the implementation of and compliance with IBMs Business Conduct Guidel
44、ines.The Executive Compensation and Management Resources Committee:Oversees IBMs compensation programs and employee engagement as an indicator of company culture,and reviews IBMs human capital management,diversity and inclusion,and other management resources programs.The Directors and Corporate Gove
45、rnance Committee:Oversees corporate social responsibility,sustainability and other environmental,societal,and governance matters.ESG Executive Steering Committee The ESG Executive Steering Committee provides leadership and direction on key corporate responsibility issues and organization-wide goals.
46、It meets monthly,chaired by the Vice President,Corporate Social Responsibility&Chief Impact Officer,and includes senior executives from functional areas across the company.Each functional area is responsible for developing its specific goals and strategies.Chair:Vice President,Corporate Social Respo
47、nsibility&Chief Impact Officer Vice President&Chief Operating Officer,IBM Research Vice President,Corporate Environmental Affairs and Product Safety&Chief Sustainability Officer Director,Labor Relations Vice President&Chief Leadership,Culture,and Inclusion Officer Vice President&Chief Privacy and Tr
48、ust Officer Vice President,Supply Chain&Chief Procurement Officer Vice President&Chief Accountant Vice President,Investor Relations Vice President,Government and Regulatory Affairs Vice President,Assistant General Counsel&Corporate Secretary Vice President&Chief Risk Officer ESG Working Group The ES
49、G Working Group maintains awareness of ESG matters occurring across the company,monitors regulators and standard-setters sustainability-related matters,and helps bring the interests of external stakeholders and IBMs value chain forward for discussion.It includes representatives from functional areas
50、 across IBM and meets at least monthly to review key policy and strategic issues,and to make recommendations to the ESG Executive Steering Committee.Representation is cross-functional with expertise in relevant and varied disciplines across the company.Contents Introduction Governance Social Environ
51、ment Appendix Accountability for ESG at IBM IBMs long-term performance strategy integrates economic,environmental,and societal performance and leadership.The IBM Board of Directors oversees IBMs long-term business strategy and is actively engaged in ensuring that IBMs culture reflects its commitment
52、 to integrity,trust and transparency,and inclusion.Under the guidance and supervision of our Board and its committees,IBM senior management is responsible for the companys environmental and social performance and regularly reports to the Board and its committees on IBMs ESG activities.Our ESG functi
53、on coordinates day-to-day ESG and corporate responsibility-related activities and is led by the Vice President,Corporate Social Responsibility&Chief Impact Officer who reports to the Senior Vice President,Marketing and Communications.IBM 2022 ESG Report 8 9 IBM 2022 ESG Report Human Rights at IBM At
54、 IBM,we have always set high standards for the way we conduct business from corporate and social responsibility to sound business ethics.In 2019,we adopted a Human Rights Statement of Principles.These Principles represent our commitment to respect all human rights in line with international standard
55、s such as the UN Guiding Principles on Business and Human Rights,the Universal Declaration of Human Rights,and the ILO Declaration on Fundamental Principles and Rights at Work.During 2021 and 2022,we worked with a sustainability and human rights nonprofit to identify the salient human rights issues
56、across our business.This assessment prioritized areas for future due diligence and informed the development of our human rights strategy,including the formation of a role dedicated to the oversight of our human rights initiatives.Salient Human Rights Issues Product and Research Misuse Inequality/Dis
57、crimination via Products Human Rights in the Supply Chain Privacy and Cybersecurity Ethics and Corruption Human Autonomy and Dignity Freedom of Expression and Access to Information Labor Rights at IBM Environment and Human Rights Right to Science Contents Introduction Governance Social Environment A
58、ppendix 10 IBM 2022 ESG Report Ethical Impact Contents Introduction Governance Social Environment Appendix Corporate Governance and the Board 11 IBM 2022 ESG Report Corporate Governance IBMs Board of Directors has long adhered to governance principles designed to ensure the continued vitality of the
59、 board and excellence in the execution of its duties.For more than 25 years,the Board has had in place a set of governance guidelines reflecting these principles,including a policy of requiring a majority of the Board to be independent directors,the importance of equity compensation to align the int
60、erests of directors and stockholders;and the practice of regularly scheduled executive sessions,including executive sessions of independent non-management directors,led by the independent Lead Director.The IBM Board Corporate Governance Guidelines reflect IBMs principles on corporate governance matt
61、ers.IBMs Business Conduct Guidelines is our code of ethics for directors,executive officers,and employees.Any amendment to,or waiver of,the Business Conduct Guidelines that applies to one of our directors or executive officers may be made only by the Board or a board committee,and would be disclosed
62、 on IBMs website.IBM also has a process by which stockholders and other interested parties may communicate with the Board or non-management directors.Governance Highlights Effective Leadership,Independent Oversight,Strong Corporate Governance Independent Lead Director with robust and well-defined re
63、sponsibilities Committee sessions with key strategic leaders from senior management Annual Board self-evaluations led by the independent Lead Director Executive session led by independent Lead Director at each board meeting Proactive board and committee refreshment,with focus on diversity and the op
64、timal mix of skills and experience Annual review of the board leadership structure Confidential voting Stockholder Rights and Accountability Annual election of all directors Majority voting for directors in uncontested elections Stockholder special meeting right Proxy access No stockholder rights pl
65、an No supermajority voting provisions Robust year-round stockholder engagement process Signatory of Commonsense Principles 2.0 Endorser of Investor Stewardship Group Principles Signatory to the Business Roundtable Statement on the Purpose of a Corporation Stockholder right to remove directors Conten
66、ts Introduction Governance Social Environment Appendix Contents Governance Introduction Social Environment Appendix IBMs Board of Directors The IBM Board is composed of a diverse group of members,all leaders in their respective fields.All current directors have leadership experience at major domesti
67、c and international organizations with operations inside and outside the U.S.,at academic or research institutions,or in government.Directors also have deep industry expertise as leaders of organizations within some of the companys most important client industries and constituencies.11 out of 12 dir
68、ectors are independent.In the last four years,two women directors and three ethnically diverse directors were added.The average tenure of director nominees is 5.9 years.Fifty percent of our director nominees were first elected to our Board in the past four years.IBM 2022 ESG Report The Board include
69、s directors who have a deep understanding of our business,and members who bring new skills and fresh perspectives.We have a deliberate mix of age and tenure on the Board,which reflects our commitment to ongoing and proactive board refreshment.The Directors and Corporate Governance Committee and the
70、Board believe that the abovementioned attributes,along with the leadership skills and other experiences of the Board members described on the next page,provide IBM with the perspectives and judgment necessary to guide IBMs strategies and oversee their execution.Business Operation,Innovation,Transfor
71、mation,and Digital Experience For over a century,IBM has continuously reinvented itself to help its clients move from one era to the next.The ability to comprehend and analyze complex matters,including technology,is key to the IBM Boards oversight of the companys innovation and digital transformatio
72、n.All IBM directors have led large organizationscrucial experience for understanding and overseeing the scale,scope,and complexity of IBMs business.Industry Expertise IBM uniquely combines innovative technology with deep industry expertise,underpinned by security,trust,and responsible stewardship.IB
73、Ms directors have experience leading organizations in a variety of industries that enhance the Boards knowledge.Their perspectives on contemporary business issues and experience running data-intensive organizations are an asset to the company and to our stockholders.Diverse and Global Perspective Th
74、e Boards diversity and international experience is crucial for IBM,which operates in more than 175 countries.Our business success is derived from an understanding of diverse business environments and economic conditions,and a broad perspective on global business opportunities.12 13 IBM 2022 ESG Repo
75、rt IBM Board of DirectorsExperience and Skills of Director Nominees Thomas Buberl David N.Farr Alex Gorsky Michelle J.Howard Arvind Krishna Andrew N.Liveris F.William McNabb III Martha E.Pollack Joseph R.Swedish Peter R.Voser Frederick H.Waddell Alfred W.Zollar Client industry experience Organizatio
76、nal leadership and management Global operations CFO Specific risk oversight/risk management exposure Technology,cybersecurity,or digital Academia Government/regulatory,business associations,or public policy Public board Gender identity Male Male Male Female Male Male Male Female Male Male Male Male
77、Race and/or ethnicity White/Caucasian White/Caucasian White/Caucasian Black/African American Asian/Pacific Islander White/Caucasian White/Caucasian White/Caucasian White/Caucasian White/Caucasian White/Caucasian Black/African American Born outside the U.S.The following client industries provide a sn
78、apshot into the many key and diverse industries in which our directors have relevant experience.Many of our directors have experience in multiple client industries.Contents Governance Introduction Social Environment Appendix Healthcare Government Manufacturing Research&Development Energy Financial S
79、ervices&Insurance Information Technology Chemicals 14 IBM 2022 ESG Report Risk Management We maintain a consistent,systemic,and integrated approach to enterprise risk management(ERM).Designed to identify,mitigate,and manage significant risks,our ERM function assesses risks across the organization to
80、 develop a holistic,enterprise-level view of risks arising from evolving regulatory or financial environments,operations,or strategic planning and execution.This includes evaluation of ESG-related risks.Oversight of risk management begins with our Board of Directors,which is responsible for assessin
81、g our ERM approach and overseeing managements execution of its risk responsibilities.IBMs risk professionals,including the Chief Risk Officer(CRO),work closely with senior management to integrate risk assessment into Board and committee briefings on topics of strategic importance.The Board and its t
82、hree committees receive periodic updates on the ERM program,and each committee examines specific risk components:Audit Committee Reviews financial and audit risks identified through our ERM framework,including those related to cybersecurity,and oversees implementation of and compliance with IBMs Bus
83、iness Conduct Guidelines.Executive Compensation and Management Resources Committee Reviews risks related to compensation programs and employee engagement as an indicator of company culture,and reviews IBMs human capital management,diversity and inclusion,and other management resources programs.Direc
84、tors and Corporate Governance Committee Reviews risks associated with governance,as well as corporate social responsibility,sustainability,environmental,and other societal and governance matters.Additionally,our Chief Trust and Compliance Officer reports regularly to the Board and to the Audit Commi
85、ttee on compliance-related matters and holds a private session with Audit Committee members at every meeting.Our senior management is responsible for assessing and managing the various risk exposures on a day-to-day basis.The ERM program is led by our CRO(reporting up through our Chief Financial Off
86、icer)who drives senior leader decision making.This is achieved through a senior executive Country Investment Board and operationalizes via a risk council of business unit and process leaders,and senior managements relevant governance forums.We have developed tools that employ analytics and AI techno
87、logies to assist our ERM processes,and our Country Risk Scorecard identifies emerging risk areas.By leveraging a series of key risk indicators,we can timely alert country and regional leadership of risk areas and proactively respond.We promote a company culture of risk awareness through online educa
88、tion and mandatory training in areas such as business integrity and cybersecurity including a new Risk Academy,where all employees can take courses and earn badges on risk management awareness and skills.Additionally,all employees are encouraged to report potential risks through numerous channels(an
89、onymously if preferred),or to local management.Environmental and Climate-Related Risks Climate change is a serious concern that warrants meaningful action on a global basis.In addition to other risks identified by our ERM process,we consider risks identified by the TCFD in our risk management profil
90、e.IBM,like other companies,is subject to potential climate-related risks and costs,such as those resulting from increased severe weather events,prolonged changes in temperature,new regulations affecting hardware products and data centers,carbon taxes,and increased environmental disclosures requested
91、 or required by clients,regulators,and others.Our senior management assesses the significance of environmental and climate-related risks and opportunities and manages them accordingly.Reports on IBMs environmental programs,challenges,and emerging issues are regularly provided to the Board and its Di
92、rectors and Corporate Governance Committee.We do not expect compliance with environmental laws and climate change regulations to have a disproportionate effect on the company or its financial position,results of operations,and competitive position.Conversely,we believe there is opportunity to use IB
93、Ms AI,hybrid cloud,and other technologies to assist clients with managing their climate-related risks.Contents Introduction Governance Social Environment Appendix 15 IBM 2022 ESG Report Business Ethics Every year employees worldwide participate in IBMs Business Conduct Guidelines(BCGs)program to cer
94、tify their understanding of our code of business conduct and ethics and recommit to doing business with integrity.The IBM BCGs policy is available in 26 languages,and the accompanying online course,which includes ethical dilemmas that employees may face day-to-day,is available in 20 languages.During
95、 2022,IBM again achieved 100%participation in the annual BCGs program.In addition,IBM Trust and Compliance also conducts extensive in-person and virtual training on topics including public procurement,business amenities,anti-corruption,speaking up and nonretaliation,being a gatekeeper,and fraud prev
96、ention.Sponsored and attended by our business leaders,these training initiatives set the tone from the top and are customized to highlight the risks the particular audience might face.New tools and applications such as live polling and role plays,are leveraged to drive engagement and participation.O
97、ur internal reporting channel enables employees to report concerns or suspected violations of our BCGs,as well as unethical or unlawful behavior within IBM.Similar reporting channels have been established for suppliers,business partners,and others to raise concerns.Learning about issues and concerns
98、 allows us to intervene early,investigate,and remediate.Our annual Global Integrity Survey,first launched in 2010,enables employees to provide feedback on their perception of ethics and integrity within IBM.The insights gained from the survey help us gauge employee sentiment regarding speaking up,re
99、taliation,and“doing the right thing.”Survey results are also used to implement changes to our programs and to enhance training on targeted topics.Integrity in our Daily Operations IBM is committed to principles of business ethics and lawful conduct.It is IBMs policy to conduct itself ethically and l
100、awfully in all matters and to maintain IBMs high standards of business integrity.IBM Business Conduct Guidelines Available in 26 languages and accompanied by an annual online course and certification,which IBMers are required to complete.IBM Code of Conduct for Business Partners The standards of bus
101、iness conduct and business practices with which IBM requires IBM Business Partners to comply.Supply Chain Code of Conduct First-tier suppliers of hardware,software,and services are required to adhere to our RBA Code of Conduct which outlines requirements for labor,health and safety,environmental,eth
102、ics,and management systems.IBMs own operations also adhere to the RBA Code of Conduct.IBM Policies Govern internal and external company-wide actions including:Business conduct and ethics Reciprocity Workforce diversity Health and safety Data privacy Diverse business relationships Environmental affai
103、rs Quality Politics Human rights principles Global employment standards Cognitive principles Statements on individual issues Contents Introduction Governance Social Environment Appendix Responsible Technology 16 IBM 2022 ESG Report Technology Ethics For more than a century,IBM has earned the trust o
104、f our clients and of society by ushering powerful new technologies into the world responsibly and with clear purpose.We maintain trust in transformative technologies,such as AI,through a foundational commitment to ethics by applying the IBM Principles for Trust and Transparency.A report released by
105、the IBM Institute for Business Value,AI ethics in action,found that building trustworthy AI has now become an executive-level business imperative largely driven by societal expectations.At the center of IBMs trustworthy AI efforts is the AI Ethics Board,made up of a diverse set of stakeholders from
106、across the company,who infuse the companys principles into business and product decision-making.The AI Ethics Board is steered by a corporate advisory committee and supported by AI Ethics focal points within the companys business units and a strong advocacy network.We encourage others to also integr
107、ate ethical considerations into their design and development processes and provide guidance by sharing our findings and governance model.Some notable examples include the IBM Design for Sustainability and IBM Software Engineering for Sustainability position papers;IBM OpenPages with Watson,which hel
108、ps AI governance adopters manage rapidly changing regulatory and compliance demands;and IBM AI FactSheets,which we contributed to the public domain and are now a key component of the IBM Watson Knowledge Catalog,that helps organizations to implement AI governance.To promote AI ethics practices throu
109、ghout our ecosystem,IBM exceeded our target to train 1,000 ecosystem partners in technology ethics and have announced a new commitment to train 1,000 technology suppliers in technology ethics by 2025.Contents Governance Introduction Social Environment Appendix 17 IBM 2022 ESG Report Collaborations a
110、nd Initiatives In 2022,sponsor of the AI for Good initiative in service of the United Nations International Telecommunication Union and in support of the United Nations SDGs.The Notre Dame IBM Tech Ethics Lab hosted 36 universities from across the globe at a Global University Summit to discuss how t
111、he principles of the Rome Call for AI Ethics might be put into practice and eight universities formally signed the Call.In January 2022,the Lab announced that 27 projects related to the ethics of technology through scaling,automation,identification,prediction,persuasion,and adoption would be funded
112、by the Lab.We also worked to establish best practices across industry as a member of the Data&Trust Alliance,contributing to projects that included establishing Algorithmic Bias Safeguards for Workforce and Responsible Data&AI Diligence for M&A.In May 2022,IBM co-founded the Responsible Computing co
113、nsortium to approach trustworthy IT and sustainability.The consortium,comprised of technology innovators from industry and academia,created a framework to address current and future challenges holistically and systemically in computing.The Responsible Computing framework focuses on:Responsible Data
114、Centers:Designed and operated with an emphasis on sustainability Responsible Code:Conscious code choices that optimize environmental,social,and economic impact over time Responsible Systems:Inclusive systems that address bias and discrimination,driving equality for all Responsible Infrastructure:Eff
115、icient use of available and future technology Responsible Data Usage:Data is securely used in ways that drive transparency,fairness,and respect for the users Responsible Impact:Technologies and innovations that drive positive impact for society at large Contents Introduction Governance Social Enviro
116、nment Appendix 18 IBM 2022 ESG Report Cybersecurity IBM maintains a multifaceted risk-management approach to identify and address cybersecurity risks.This includes a foundation of policies and procedures upon which IBM manages its own infrastructure and data,as well as ongoing assessment of technica
117、l controls and methods for identifying emerging risks.IBMs security monitoring program and incident response process applies to IBM operations worldwide,identifying and responding to any threats or attacks on networks,end-user devices,servers,applications,data,and cloud solutions in IBMs operating e
118、nvironment in real time.We foster security awareness and responsibility among our workforce with online training,educational tools and videos,and other initiatives.All employees and contractors are required to complete cybersecurity education within 30 days of joining IBM and are required to refresh
119、 their training annually.IBMs Chief Information Security Officer(CISO)leads a team that works across the company to protect IBM,its brand,and its clients against cybersecurity risks.The CISO team is responsible for information security strategy,policies,standards,architecture,and processes including
120、 the maintenance of extensive internal corporate directives requiring the creation and implementation of information security standards,processes,and procedures.The CISO reviews and approves these directives and other corporate policies annually.Both the Board and its Audit Committee receive regular
121、 updates from senior management,including the CISO and cybersecurity experts,in areas such as threat intelligence,major cyber risk areas,emerging global policies and regulations,cybersecurity technologies and best practices,and cybersecurity incidents.Our enterprise IT security policy and related st
122、andards are based on industry best practices,including but not limited to,the National Institute of Standards and Technology(NIST)and the International Organization for Standardization(ISO).To maintain leading-edge levels,we have implemented a set of practices,called IBM Security and Privacy by Desi
123、gn,that IBM business units use to assess threats,test protections and verify that security requirements are met.Our Data Security and Privacy Principles(DSP)detail the contractual commitments of security and data protection IBM makes to its clients.Our DSP is a comprehensive set of Security and Priv
124、acy commitments to our clients that is modeled to be an industry leading collection of security terms that considers industry standards,IBM standard practices,and regulatory requirements.To validate security controls,IBM ensures all controls are tested and certified regularly through a combination o
125、f frameworks and assessments,including ISO,System and Organization Controls(SOC),the Sarbanes-Oxley Act,the Federal Risk and Authorization Management Program,the Health Insurance Portability and Accountability Act(HIPAA)and others.IBM also undergoes numerous internal and external audits,and each ser
126、vices team conducts ongoing self-assessments.You can learn more about IBMs internal IT security principles at the IBM Trust Center.IBM Cybersecurity Governance IBM Board of Directors&Audit Committee Cybersecurity Advisory Committee(CAC)Business Unit Information Security Officers(BISOs)for each busin
127、ess area IBM Chief Information Security Officer(CISO)Contents Introduction Governance Social Environment Appendix IBM is committed to meaningful management and oversight,and accurate reporting with respect to our engagement with government officials,and we consistently seek to provide our stakeholde
128、rs with relevant data regarding our public policy engagement.Contents Data Privacy IBM is committed to developing policies and practices that prioritize ethics,trust,transparency,and accountability.For over a century,we have earned the trust of our clients by responsibly managing their data.We have
129、worked to earn the trust of our stakeholders by ushering powerful new technologies into the world,responsibly and with purpose.We are harnessing our end-to-end data fabric platform to enable a more continuous compliance approach,increasing flexibility and speed to address emerging regulations and fu
130、ture-proof our day-to-day privacy operations.As an organization,IBM has legal,contractual,and ethical obligations to respect individuals privacy rights,and a duty to maintain the highest standards of data security,governance,and integrity.In 2022,IBMers and contractors received a highly interactive
131、online course designed to help recognize and defend against common cybersecurity threats,handle sensitive and personal information appropriately,and address AI ethics issues.IBM also advocates for policymakers to focus on constancy and compatibility when crafting new regulations to forge global tech
132、nology rules that provide a consistent approach to handling personal information while enabling the free and secure flow of data across regions.At IBM,trust and transparency are foundational to our company.IBM 2022 ESG Report Introduction Governance We regularly review and update the IBM Privacy Sta
133、tement,translating it into multiple languages,with the continued goal to simplify the explanation of how IBM collects,uses,and shares information.We are firmly committed to the responsible stewardship of data entrusted to us by our clients.Every six months,we publish reports of inquiries we may rece
134、ive from law enforcement agencies regarding data and the steps we take to protect the integrity of such information.Emerging technologies are raising questions about how to address the potentially significant challenges they pose to privacy and consumer welfare.Policymakers,researchers,and other sta
135、keholders should proactively seek to understand these risks and develop precise technological and policy safeguards.To prepare for what comes next with new technologies like neurotech and quantum,IBM is collaborating with academic,industry and government leaders to create enduring solutions.Social E
136、nvironment Policy Advocacy We advocate for public policies that are relevant to our business and to our stakeholders including our employees,our partners,our stockholders,and the communities where we live and work.Appendix We engage policymakers and leaders globally to promote ideas that can help sp
137、ur growth and innovation with new technologies or address societal challenges,such as building a skilled and diverse workforce.We do this by developing innovative policy ideas that are aligned with national agendas,through building trusted relationships with government leaders,and through partnershi
138、ps with academia and civil society.IBM has never made political contributions nor endorsed candidates for office,and our company does not have a political action committee.19 20 IBM 2022 ESG Report IBMs public advocacy highlights in 2022 include:IBM was an early and vocal advocate of the CHIPS and S
139、cience Act of 2022.For several years we have advocated for this historic investment in American semiconductor innovation and manufacturing and engaged with members of Congress,the administration,and the business community to ensure this legislation made it across the finish line.After several years
140、of pushing for better safeguards against harmful content online,IBM welcomed the Digital Services Act(DSA),which looks to curb online illicit content and increase content responsibility for online platforms,and the Digital Markets Act(DMA),which curbs the power gatekeepers have over online services
141、in the EU.IBM continues to push for strong,bipartisan privacy legislation in the U.S.,and in June the company sent a letter to Congress advocating for consumers to have a single and consistent set of privacy rights established through a comprehensive national law that champions consumer privacy whil
142、e fostering innovation,competitiveness,and accountability.IBM supports the Climate Leadership Council proposal that would put a tax on carbon dioxide emissions,with the proceeds of that tax a“carbon dividend”to be returned to citizens.After two years of collaborative negotiation,IBM supported passag
143、e of the Cybersecurity Incident Reporting for Critical Infrastructure Act in 2022,which enables a whole-of-government approach to prepare and respond swiftly to cyber threats.The IBM Policy Lab,established in 2020,convenes leading thinkers in public policy,academia,and technology to develop concrete
144、,common-sense policy ideas that leverage technology to help tackle some of the most pressing issues facing our world.In 2022,the Policy Lab released papers covering:Precision Regulation for Data-Driven Business Models,which outlined a new approach for how governments can regulate consumer-facing dat
145、a-driven business models based on risk.Recommendations for the European Union-United States Technology and Trade Council(TTC)to promote stronger trans-Atlantic cooperation on digital,technology and trade issues.Strategies for policymakers to improve the security and transparency of software supply c
146、hains,including open source software(OSS).IBM is committed to meaningful management and oversight,and accurate reporting with respect to our engagement with government officials,and we consistently seek to provide our stakeholders with relevant data regarding our public policy engagement.We receive
147、consistently high ratings from independent analysts of corporate practices on lobbying and political spending,including from the Center for Political Accountability and Transparency International UK.IBM is also committed to advocating for policies that advance diversity and inclusion globally.Inform
148、ation on our advocacy efforts can be found in the Diversity and Inclusion section on page 26.More information about our public policy governance and public reporting is available on IBM.com/policy.Contents Introduction Governance Social Environment Appendix 21 IBM 2022 ESG Report Equitable Impact Co
149、ntents Introduction Governance Social Environment Appendix 22 IBM 2022 ESG Report Our Culture IBM operates in more than 175 countries and employs over 285,000 people.We are in constant pursuit of our goal to make the world work better and are proud to be at the forefront of groundbreaking changes in
150、 the industries we serve and the world at large.We help the world work better by delivering innovative products and services that maximize businesses productivity and efficiency and by contributing positively to society.IBMers are critical to accomplishing this.By providing an inclusive environment
151、that encourages learning and exploration of new ideas and innovative approaches,we can make the greatest impact with our clients,partners,colleagues,and the world.Our culture is what drives us.Its what motivates every IBMer to do their best work.Together,we think big,set the pace for our industry,fo
152、rge partnerships,and make the world work better.8 in 10 employees believe IBM makes a positive impact in the community Results inclusive of Red Hat Our Culture Formula:Purpose+Values+Behavior Our Purpose:To be the catalyst that makes the world work better.Our Values:Three fundamental values serve as
153、 the foundation of IBMs culture and brand.They guide our work,decisions,and relationships:Dedication to every clients success Innovation that mattersfor our company and for the world Trust and personal responsibility in all relationships Our Behaviors:IBMs Growth Behaviors reflect the mindset and be
154、haviors required to drive new ideas,collaboration,inclusion,and speed.When demonstrated,these six behaviors allow us to unleash our full potential and lead to optimal outcomes.These behaviors dictate how we show up for each other and for our clients and partners.Growth minded:believing people can im
155、prove over time with effort.We apply this mindset when approaching solutions,by experimenting,learning,and focusing on progress over perfection and activate it by staying curious,and open to feedback,to learn and unlearn new information and skills Trusted:providing ongoing,candid feedback to help ea
156、ch other grow,having tough conversations when needed,and acknowledging intent and impact when we communicate.Building inclusive relationships with respect and empathy creates a safe,trusting environment for employees to collaborate Team focused:expanding boundaries for our teams to include different
157、 perspectives and promote plurality of thoughts in order to drive greater collaboration and exponential outcomes Courageous:making critical decisions and taking calculated risks by combining both data and experience to forge an actionable path forward;being able to think independently and having the
158、 courage to stand on our own Resourceful:tackling challenges with the resources we have at hand,coupled with prioritization,brainstorming and a can-do attitude;being resilient,both personally and in business and unleashing untapped capabilities Outcome focused:being clear about the outcome we are lo
159、oking for in everything we do,then aligning and prioritizing all of our energy to ensure our execution is leading toward our business objectives;challenge and deprioritize things that do not align by adjusting course of action with agility and being open to“fail fast”Contents Introduction Governance
160、 Social Environment Appendix Supporting Our Employees 23 IBM 2022 ESG Report IBMer Career and Development Twice annually,IBMers complete“Performance Reflections”which encourage them to celebrate their accomplishments and plan for focus areas going forward.These Performance Reflections are then evalu
161、ated by managers against two dimensions:business outcomes and skills.IBMer Learning IBM invests in its employees professional development with a range of advanced tools and resources that empower IBMers to direct their own career paths and build the skills required to pursue their goals.Our next gen
162、eration learning strategy deeply centers on skill growth,and we have refreshed our learning program to better align with this strategy.Our enterprise-wide shift emphasizes learning and experiences to build skills and expertise critical to job roles and internal mobility.With our refreshed programs,I
163、BMers will accelerate skill growth and gain more relevant skills in a more efficient and personalized manner,allowing for deeper learning in less time.IBMer Leadership Development We provide an end-to-end leadership journey from the time employees are identified as having leadership potential throug
164、h our most senior positions.During this leadership journey we seek to empower every employee to demonstrate our Growth Behaviors that bring the IBM culture to life.Embedded across all strategic HR portfolios,our Growth Behaviors represent what we look for when we hire,how we recognize and reward tea
165、ms,how we measure engagement and performance,and how we assess,develop,and select leaders.Our Growth Behaviors digital content is available to all employees and additional resources,including workshops,are provided to IBM leaders.In addition,senior executives receive team activation sessions,special
166、ized deep-dives,and professional coaches aligned to the Growth Behaviors.All leaders receive leadership assessments and in 2022 the results of these assessments were used to provide over 11,000 leaders with resources and personalized learnings.Our current learning resources:Your Learning at IBM:Gene
167、rates personalized learning recommendations and resources for IBMers using Watson AI technology.Your Career at IBM:Designed to help IBMers assess their current skills,identify skills they need for new roles,and find career opportunities within IBM,it connects IBMers to certification programs,as well
168、 as coaching and mentoring to supplement their development.Employee Learning 2020 2021 2022 Total hours worldwide(M)32.5 22.5 24.3 Hours per regular/full time employee 88 84 86 Results inclusive of Red Hat Contents Introduction Governance Social Environment Appendix 24 IBM 2022 ESG Report Health,Saf
169、ety and Wellbeing IBM has a long-standing commitment to the health,safety,and wellbeing of its employees.This commitment is embodied in our health and safety policy and through our compliance with country legal requirements,both of which are implemented through IBMs Health&Safety Management System(H
170、SMS).Established in 1999,our HSMS provides a framework to manage evolving and emerging health and safety risks by providing a system to identify,assess,and address the health and safety risks employees face in their day-to-day work activities.IBMs Health and Safety Management System supports IBM ope
171、rations globally and has been externally certified since 2019 to comply with the ISO 45001:2018 occupational health and safety standard.Worker-related Injuries 2021 2022 Number of fatalities 1*0 Rate of fatalities 0.0016*0 Number of high-consequence work-related injuries3 5 1 Rate of high-consequenc
172、e work-related injuries1 0.0082 0.0018 Number of recordable work-related injuries2 38 9 Rate of recordable work-related injuries1 0.0625 0.0159 Number of hours worked 607,952,000 564,650,000 Main types of work-related injuries Slips and falls,automobile and struck by/strike against Struck by/strike
173、against an object,slips and falls,overexertion Work-related Ill Health 2021 2022 Number of fatalities as a result of work-related ill health 0 0 Number of cases of recordable work-related ill health2 22 24 Main types of work-related ill health Hearing loss&musculoskeletal Hearing loss&musculoskeleta
174、l*Updated from prior year to reflect subsequent events 11,000,000 hours worked is used for rate calculations 2ASTM E2920-19 Standard Guide for Recording Occupational Injuries and Illnesses is used to standardize reporting of work-related recordable(i.e.,Level 1)injuries and illnesses 3High-consequen
175、ce work-related injuries are reported in accordance with GRI 403-9 Contents Introduction Governance Social Environment Appendix Benefits We offer a comprehensive benefits program designed to support IBM employees and their families across multiple dimensions of health physical,mental,social,and fina
176、ncial.Benefits vary from country to country.We are committed to flexible workplace policies and comprehensive work life programs to help our employees achieve balance while fostering success.An array of benefits and programs are available to employees such as flex time and parenting benefits.25 IBM
177、2022 ESG Report Contents Governance Introduction Social Environment Appendix -Wellbeing Programs We believe our employees perform their best at work,at home and in the communities where they live and work when their wellbeing is supported.Our wellbeing programs,which include physical,mental,and fina
178、ncial health are shaped by risk assessments,frequent surveys and employee feedback sessions.In 2022,our wellbeing programs focused on cardiovascular,musculoskeletal,and mental health.We believe in not taking a one-size-fits-all approach when it comes to health,safety,and wellbeing.As a large global
179、employer,we strive to provide wellbeing programs that are culturally relevant and inclusive to address the needs of a diverse employee population.Our wellbeing programs vary by country and are based on the prevailing health and safety needs of the applicable end-users.Mental Health Employee mental h
180、ealth has always been an IBM priority,even before the COVID-19 pandemic imposed new levels of stress.All employees worldwide have confidential,24/7 access to critical mental health support through employee assistance programs and supplemental resources.Employees also have access to the Mental Health
181、 Ally Badge program,an online training designed to help employees become mental health allies.The program covers basic information about mental health and teaches employees how to recognize and address stigma,and how to help connect peers in need of support with an appropriate service or resource.In
182、 addition,IBM launched a resilience-building tool to help equip employees with the ability to handle challenges,thrive in the face of stress,and bounce back smarter and stronger to face changing work and life demands and optimize opportunities.26 IBM 2022 ESG Report Diversity and Inclusion We foster
183、 a culture of conscious inclusion and active allyship,where every IBMer can make a positive impact on society while bringing their authentic selves to work.We are building this through creating a more diverse workforce,cultivating a flexible work environment,enabling an inclusive culture,and advocat
184、ing for equity,both inside and outside of IBM.Our four strategic priorities measure our progress through actions and outcomes Employee Experience We champion all diverse communities of IBMers and support every employee to thrive and bring their authentic selves to work.Advocacy We work to drive syst
185、emic change that creates opportunity for diverse communities.Contents Governance Introduction Social Environment Appendix Allyship We provide training and support to help every IBMer be an upstander through inclusive behaviors.Accountability We harness data transparency to enable accountability,acti
186、on and outcomes for increased diversity representation and inclusion at every level of our company.Contents Governance Introduction Social Environment Appendix -Employee Experience We champion all diverse communities of IBMers and support every employee to thrive and bring their authentic selves to
187、work.Our eight official communities include Women,LGBTQ+,DiversAbility,Black,Hispanic,Native American,Asian,and Veteran.We set strategy for each of our communities annually through D&I Leadership Councils which are supported by senior IBM leaders and our Business Resource Groups.Business Resource Gr
188、oups Business Resource Groups at IBM are volunteer,employee led groups formed around a common interest,bond,or background.Over 200 Business Resource Groups Employees globally participate with membership in 52 countries In 2022,IBM established 22 new Business Resource Groups IBM 2022 ESG Report It is
189、 important to us that we create an inclusive workplace where all our employees feel supported.A comprehensive update to the IBM Workplace Guidelines was issued in 2022,which included requirements such as all gender restrooms,reflection and prayer rooms,lactation rooms,increased aisle widths and turn
190、ing radius,and tonal contrast for materials.These design elements will be included in all new workplace projects going forward.The Guidelines also included baseline Inclusive Design elements which are required at IBM legacy locations regardless of age or geography.Advocacy We work to drive systemic
191、change that creates opportunity for diverse communities through investments,partnership programs,external advocacy,and legislation.Information on our philanthropic efforts to support inclusivity can be found in the Community Development section on page 32 and information on our work with diverse sup
192、pliers can be found in the Supplier Diversity section on page 39.Apprenticeships and Returnships IBM continues to invest heavily in apprenticeship and new-collar programs globally to ensure the next decade in tech is more inclusive.We believe apprenticeship and returnship models can help close the o
193、pportunity gap,as well as narrow the skills gap in IT.To promote this approach,in 2022 IBM committed to investing$250 million in apprenticeship and new-collar programs by 2025.IBM Apprenticeship Program Provides an entry point into IBM for people with relevant skills but without advanced degrees wha
194、t we call“new-collar”talent.Our U.S.Department of Labor registered program is competency-based and enables apprentices to be paid while they learn skills for various strategic roles.Launched in 2017,the program began with software engineering and has expanded to 35 job roles,including data science,c
195、ybersecurity,and design.We have hired over 900 apprentices through our U.S.program with more than 90%of past program graduates becoming full-time IBMers.IBM Tech Re-Entry Program Seeks people looking to rejoin the workforce after a career break.This paid“returnship”provides a path back to full-time
196、employment and helps individuals modernize their skills with learning,plus mentorship from IBM experts.Available in ten countries,this initiative is also providing opportunities to people whose careers were disrupted by the COVID-19 pandemic.27 Policy Advocacy Throughout the year,we also supported s
197、everal bills brought forth to the U.S.Congress in support of our diverse communities of IBMers including:The Respect for Marriage Act,to protect marriage equality for LGBTQ+and interracial couples,which Congress passed and was signed into law by the President in December 2022 The Equality Act,to ext
198、end civil rights protections to the LGBTQ+community The Dream Act and the American Dream and Promise Act,to provide protections and certainty for Deferred Action for Childhood Arrivals(DACA)recipients,or DREAMers We advocate for our diverse IBMers globally and,in November,sent a letter to Slovakias
199、Prime Minister urging the Slovak government to create a safe and welcoming environment for all following the murders of two members of Slovakias LGBTQ+community.Contents We recognize that for new-collar strategies to make an impact on the labor market at scale,we must work together.This is why we ha
200、ve partnered with the Consumer Technology Association to create the CTA Apprenticeship Coalition that helps companies launch apprenticeship programs in the U.S.,are founding members of the OneTen Coalition and the New York Jobs CEO Council,as well as a chair of the Business Roundtables Multiple Path
201、ways Initiative.These efforts work to improve opportunities by scaling new-collar programs and encouraging more companies to adopt skills-first talent strategies.Allyship IBM provides voluntary training and support to help every IBMer be an upstander through inclusive behaviors.In addition,we requir
202、e all our employees globally to complete training on the Business Conduct Guidelines which includes learnings on sexual harassment,discrimination,bullying and retaliation prevention as part of its Introduction Governance annual certification process.We regularly refresh education for our employees t
203、o help foster an inclusive culture and provide them with the tools and knowledge to become an Ally through our Be Equal Ally Badge which has been earned by thousands of IBMers.The Be Equal Ally Badge is earned by IBMers who embody intentional and positive everyday efforts to advance and benefit peop
204、le different from themselves.This badge is earned through demonstrated learning,volunteer effort,and advocacy and is assessed and approved by earners managers.Be Equal Ally Badge earners actively advocate through actions and activities to create a supportive,inclusive culture at IBM for all diverse
205、communities.Social Environment Accountability IBM harnesses data transparency to enable accountability,action and outcomes for increased diversity representation and inclusion at every level of our company.Pay Equity Paying people fairly based on their job and without discriminationregardless of gen
206、der or raceis not optional.It is a mandate that aligns with our values.IBM has a longstanding practice of pay equity and is firmly committed to equal pay for equal work.It has been part of our global policy since 1935preceding the U.S.law by several decades.We have been conducting statistical pay eq
207、uity analysis in the U.S.since the 1970s.To support our commitment to pay equity,each year we follow a consistent methodology to identify and address any pay equity gaps across genders globally and across races and ethnicities in the U.S.In 2022,all countries where IBM has employees were included in
208、 our pay equity analysis.We are proud of the results:overall,IBM pays equitably for similar work.Women globally earn$1.00 for every$1.00 earned by men for similar work.The same is true for underrepresented minorities in the U.S.Diversity-Linked Executive Compensation To reinforce our focus on improv
209、ing the diverse representation of our workforce,we link executive compensation with the companys performance in key diversity areas.A modifier for diversity results is included in the annual incentive program for our executives globally and is based on improvement in executive representation for wom
210、en globally and U.S.underrepresented minority(URM)groups(specifically,Black and Hispanic)for our executives Appendix in the U.S.Our goal remains to improve and close the gap in representation.Opportunities for Self-Identification Diversity and Inclusion have always been the cornerstone of our succes
211、s as a company.IBM believes that providing opportunities for self-disclosure allows employees to voluntarily share their uniqueness.By self-identifying,we show awareness and may leverage differences by creating solutions and network opportunities for a successful company.Of employees who self-identi
212、fied in 2022:Over 9%self-identified as LGBTQ+Almost 5%self-identified as Veterans Over 1%self-identified as People with Diverse Abilities Results inclusive of Red Hat.The privacy of our employees is our chief concern and IBM complies with all applicable legal requirements when handling this informat
213、ion.The indicator is designed so that only a specific and limited number of professionals within the Diversity and Talent organizations have access to this information.Self-identification information is not visible to managers or team members and is held in strictest confidence.In 2022,of our global
214、 promotions,42.2%were women and,of our U.S.promotions,8.3%were Black employees and 7.7%were Hispanic employees.Results inclusive of Red Hat IBM 2022 ESG Report 28 20 21 22 31.8%31.9%29.0%Women(Global)20 21 22 30.1%35.5%29.9%Women(Global)20 21 22 5.7%3.8%5.2%Black 20 21 22 5.5%5.1%5.1%Hispanic 20 21
215、22 0.4%0.4%0.2%Native American 20 21 22 18.0%17.2%15.6%Pan-Asian 20 21 22 0.9%0.8%0.8%Multi-race 20 21 22 6.7%9.8%7.1%Black 20 21 22 5.0%6.8%5.1%Hispanic 20 21 22 0.6%0.3%0.0%Native American 20 21 22 19.6%19.2%17.0%Pan-Asian 20 21 22 2.2%0.8%0.3%Multi-race Management(includes all executives and peop
216、le managers)Representation New Hires(U.S.)(U.S.)(U.S.)(U.S.)(U.S.)(U.S.)(U.S.)(U.S.)(U.S.)(U.S.)29 IBM 2022 ESG Report IBM hired over 59,000 employees in 2022 Women(data includes active regular employees)All data(except for women,as noted above)includes active regular and nonregular(supplemental)emp
217、loyees Results inclusive of Red Hat,including prior years which have been restated Contents Introduction Governance Social Environment Appendix Representation and Hiring Trends Overall(includes all members of the specific community)Representation New Hires Women Black Hispanic Native American Pan-As
218、ian Multi-race Women Black Hispanic Native American Pan-Asian Multi-race(Global)(U.S.)(U.S.)(U.S.)(U.S.)(U.S.)(Global)(U.S.)(U.S.)(U.S.)(U.S.)(U.S.)33.5%36.8%37.3%19.7%19.2%24.0%23.5%22.9%20 21 22 20 21 22 20 21 22 20 21 22 20 21 22 20 21 22 20 21 22 20 21 22 20 21 22 20 21 22 20 21 22 20 21 22 6.6%
219、7.4%7.7%6.2%6.6%7.0%0.3%0.4%0.5%18.2%0.8%0.9%0.9%37.4%40.1%39.5%10.2%13.8%13.5%8.4%9.5%9.8%0.3%0.4%0.6%0.5%0.7%0.7%0.8336 in 20 21 22 27.7%28.8%29.1%Women(Global)20 21 22 30.0%30.3%31.0%Women 20 21 22 Black 20 21 22 Hispanic 20 21 22 Native American 20 21 22 14.7%15.7%16.8%Pan-Asian 20 21 22 Multi-r
220、ace 20 21 22 7.1%10.4%6.5%Black 20 21 22 5.4%7.1%6.5%Hispanic 20 21 22 0.0%0.0%0.0%0.0%0.0%Native American 20 21 22 18.5%20.0%20.7%Pan-Asian 20 21 22 Multi-race 5.0%5.3%0.3%0.7%6.0%5.5%0.4%0.5%6.6%5.9%0.5%0.6%1.8%Executive(includes Director level and above)New Hires(U.S.)(U.S.)(U.S.)(U.S.)(U.S.)(U.S
221、.)(U.S.)(U.S.)(U.S.)(U.S.)(Global)Representation 30 IBM 2022 ESG Report As noted in the Proxy,excluding Red Hat,executive representation of women globally,as well as Black and Hispanic executives in the U.S.,improved by 0.3 points,0.7 points and 0.3 points,respectively in 2022.Women(data includes ac
222、tive regular employees)All data(except for women,as noted above)includes active regular and nonregular(supplemental)employees Results inclusive of Red Hat,including prior years which have been restated Contents Introduction Governance Social Environment Appendix 27.4%30.1%30.7%5.7%6.6%7.1%6.3%6.7%7.
223、0%0.3%0.4%0.4%20 24.2%24.5%24.6%0.9%1.0%1.0%29.6%34.0%32.5%9.8%11.6%11.5%8.8%8.9%8.7%0.2%0.3%0.5%29.6%29.9%31.9%0.5%0.8%1.0%Representation and Hiring Trends Technical(includes Distinguished Engineers,Designers,IBM Fellows,etc.)Representation New Hires Women(Global)Black(U.S.)Hispanic(U.S.)Native Ame
224、rican(U.S.)Pan-Asian(U.S.)Multi-race(U.S.)Women(Global)Black(U.S.)Hispanic(U.S.)Native American(U.S.)Pan-Asian(U.S.)Multi-race(U.S.)20 21 22 20 21 22 20 21 22 20 21 22 21 22 20 21 22 20 21 22 20 21 22 20 21 22 20 21 22 20 21 22 20 21 22 31 IBM 2022 ESG Report The data below is from IBM and Red Hats
225、unofficial submission of U.S.EEO-1 data as of December 31,2022.IBM EEO-1 Female Male Total Native American Black Pacific Islander White Asian Hispanic Multiple Native American Black Pacific Islander White Asian Hispanic Multiple Executive/Senior Officials and Managers 6 74 509 116 53 16 4 96 2 1,011
226、 310 98 19 2,314 First/Midlevel Officials and Managers 12 217 2 1,536 372 137 44 8 194 7 3,024 1,037 250 60 6,900 Professionals 34 1,210 25 5,686 2,755 864 129 51 1,547 46 13,086 5,161 1,648 218 32,460 Technicians 1 43 117 24 29 1 6 187 7 999 118 217 7 1,756 Sales Workers 9 197 3 1,004 245 139 16 24
227、 355 6 3,259 701 355 33 6,346 Administrative Support Workers 3 101 338 27 57 3 4 24 2 206 14 26 3 808 Craft Workers Laborers and Helpers Service Workers Operatives Totals 65 1,842 30 9,190 3,539 1,279 209 97 2,403 70 21,585 7,341 2,594 340 50,584 Data includes all U.S.employees on IBMs payroll,inclu
228、ding active full-time,part-time,casual,temporary(if on the company payroll),co-ops/interns,and people on short-term disability.Not included are employees who are inactive,terminated or on severance,retired(but still on the payroll for benefits or payouts),expatriates,contractors,inpatriates on forei
229、gn payrolls,or people on long-term disability.Red Hat EEO-1 Female Male Total Native American Black Pacific Islander White Asian Hispanic Multiple Native American Black Pacific Islander White Asian Hispanic Multiple Executive/Senior Officials and Managers 2 16 2 1 50 10 3 84 First/Midlevel Officials
230、 and Managers 2 39 398 50 21 5 3 34 1 819 102 43 17 1,534 Professionals 149 1 1,033 264 81 39 11 146 3 2,273 426 186 72 4,684 Technicians Sales Workers 10 1 213 29 15 8 1 53 3 901 139 72 41 1,486 Administrative Support Workers 15 52 11 16 2 12 81 12 13 6 220 Craft Workers Operatives Totals 4 213 2 1
231、,712 356 134 54 15 245 7 4,124 689 317 136 8,008 Data includes all U.S.employees on Red Hats payroll,including active full-time,part-time,casual,temporary(if on the company payroll),co-ops/interns,and people on short-term disability.Not included are employees who are inactive,terminated or on severa
232、nce,retired(but still on the payroll for benefits or payouts),expatriates,contractors,inpatriates on foreign payrolls,or people on long-term disability.Contents Introduction Governance Social Environment Appendix 32 IBM 2022 ESG Report Community Development Corporate social responsibility has been a
233、 hallmark of IBMs culture for over 100 years.Together,we have a shared commitment to creating a better,more equitable worldfor each other and within our global communities.During the past year we have launched,expanded,and enhanced innovative social impact programs that are driving greater global im
234、pact.IBM Giving and Volunteering Volunteerism and giving are at the epicenter of our work and are foundational to our commitment to advancing diversity,equity,and inclusion.IBM Giving Worldwide IBM has a comprehensive giving strategy that allows us to provide the breadth of our expertise,technology,
235、and cash to support our Corporate Social Responsibility mission and priorities in education and skills,sustainability,and others.Our giving strategy is global and focuses on areas where IBM seeks to make a significant impact on those with the greatest need.In response to the devastating series of ea
236、rthquakes in Southern Trkiye and Syria,we created a fundraising campaign in February that matched employee donations to Bridge to Trkiye(BTF)and the International Red Cross.398.2 474.1 447.9 Technology 317.1 387.8 338.4 Services 36.8 42.1 64.7 Cash 44.3 44.2 44.8 Europe,Middle East,Africa 129.2 167.
237、9 151.1 Asia Pacific 69.9 150.4 103.3 North America 171.2 109.4 171.6 Latin America 27.9 46.4 21.8 Total contributions worldwide IBM Giving Worldwide($M)2020 2021 2022 Contributions by type Contributions by region Results inclusive of Red Hat.2020 and 2021 results have been restated from prior year
238、to include Red Hat IBMs social impact programs aim to address complex societal challenges by utilizing our technologies and our greatest strength,our employees.Our priority areas are:IBM Giving and Volunteering We connect employees with the resources they need to make an impact in communities around
239、 the world.We are progressing towards our 2022 commitment of 4 million volunteer hours by 2025 with over 437,000 volunteer hours recorded last year Education&Skills We are investing in the future of work with a holistic,end-to-end ecosystem approach that fosters access to education and training,whil
240、e creating a more diverse pipeline of applicants.We have committed to skill 30 million individuals by 2030 Since 2021,over 7 million learners have enrolled in IBM courses In addition,we are collaborating with over 20 historically Black colleges and universities(HBCUs)to establish IBM Cybersecurity L
241、eadership Centers Sustainability As a technology company,IBM plays a key role in enabling organizations to turn sustainability ambition into action.By the end of 2025,we expect to provide$30 million worth of cash,technology,and services through our Sustainability Accelerator to organizations helping
242、 populations vulnerable to environmental threats Contents Introduction Governance Social Environment Appendix 33 IBM 2022 ESG Report IBM Volunteers IBM Volunteers leverages the collective power of people and resources to ensure meaningful impact worldwide.The program supports active and retired IBMe
243、rs who donate their time and talents to academia,grassroots initiatives,and organizations helping to build our communitiesand their efforts qualify for IBM grants to the eligible organizations they support.IBM Volunteers has more than 100,000 registered users where we logged over 437,000 volunteer h
244、ours in 2022.*IBM Service Corps gives IBMers the opportunity to use their professional skills to help communities tackle complex challenges in education,humanitarian efforts,cybersecurity,and economic development.Since 2008,IBM Service Corps has engaged more than 8,400 employees to undertake 470 pro
245、jects in 56 countries.Volunteering Hours 2021 2022 Worldwide retiree and employee volunteer hours 440K1 437K2 1Restatement from prior year to reflect calculation correction 2Results inclusive of Red Hat*Results inclusive of Red Hat Education&Skills We believe the talent gap is one of the biggest cha
246、llenges facing businesses today.Through our social impact programs,IBM is meeting the needs of multiple learners.We have committed to skill 30 million people by 2030 with a focus on individuals that have been historically underrepresented in the technology field.Since 2021,over 7 million learners*ha
247、ve enrolled in free IBM courses through our combined education initiatives and,in 2022,we contributed over$435 million in combined cash,technology,and services toward education.Our cornerstone education programs are:IBM SkillsBuild IBM SkillsBuild is a free education program that provides valuable s
248、kills and career opportunities to traditionally underrepresented communities in technology.The program,which offers over 1,000*courses in 20*different languages on cybersecurity,data analysis,cloud computing and many other technical disciplines in addition to workplace skills,includes learners aroun
249、d the world who are predominately high school and university students,faculty,or adult learners.The program includes an online platform that is complemented by customized practical learning experiences delivered in collaboration with a global network of partners.HBCU Cybersecurity Leadership Centers
250、 IBM is collaborating with over 20 HBCUs to create IBM Cybersecurity Leadership Centers that will advance STEM-based opportunities for students.Through this collaboration,faculty and students at participating schools will have access to coursework,lectures,immersive training experiences,certificatio
251、ns,IBM Cloud-hosted software,and professional development resources,all at no cost to them.STEM for Girls STEM for Girls,which launched in India in 2019,is designed to foster a robust STEM ecosystem that encourages critical thinking,problem solving and innovation among the upcoming generation of wom
252、en in India.Through mentorship and project-based learning pathways,middle school and high school young women are exposed to different careers in STEM.P-TECH In 2011,IBM co-created P-TECH as an innovative high school model incorporating post-secondary pathways and workplace experiences aligned to car
253、eer readiness.Today,it has evolved into a successful,global,open-source model that includes mentoring,career exploration and access to IBM SkillsBuild.Contents Governance Introduction Social Environment Appendix Call for Code Call for Code,the largest tech for good initiative of its kind,calls on te
254、ams of developers and problem solvers to build technology solutions that leverage IBM AI technologies to address specific global sustainability problems in clear and unique ways.In 2022,GardenMate,a marketplace app that connects those with a surplus of fresh produce to local consumers,won our 2022 C
255、all for Code Global Challenge which saw participation from thousands of developers,students,enterprise developers,and partners.Contents Introduction Governance Social Environment Appendix Sustainability We believe the power of science,technology and innovation can help tackle environmental issues wh
256、ile serving the communities exposed to environmental hazards.By uniting experts and technology with the purpose of improving the lives of populations most affected by environmental threats,we have the potential to make a lasting,scalable impact on populations in need.IBM Sustainability Accelerator I
257、n 2022,we announced the IBM Sustainability Accelerator,a pro bono social impact program that applies IBM technologies,such as hybrid cloud and AI,and expertise to enhance and scale nonprofit and government organization solutions,helping populations especially vulnerable to environmental threats.Our
258、first cohort,which began work in 2021,is focused on sustainable agriculture,while our cohort announced at COP27 in November 2022 focuses on clean energy.We plan to select five organizations for this program each year and have committed$30 million worth of cash,services and technology by the end of 2
259、025.In 2022,we contributed over$4.7 million to promote environmental sustainability related to these programs.34 IBM 2022 ESG Report 35 IBM 2022 ESG Report Supply Chain Social Responsibility In 2022,we spent$17.5 billion with over 10,000 suppliers of hardware,software,and services,and continued to p
260、romote social and environmental responsibility among our global supply network and across our industry.On a comparative basis with 2021,both purchasing spend and number of suppliers are considerably reduced as a result of the separation of our managed infrastructure business in November 2021.Since 2
261、010,IBM has required its first-tier suppliers to create and maintain a social and environmental management system to address their responsibilities within a year of starting to do business with us.IBM suppliers must establish their management systems,measure performance,set goals,disclose results,an
262、d cascade these requirements to their upstream suppliers who perform work material to the goods and services provided to IBM.See the IBM Supply Chain Responsibility website for more details.Information on our promotion of environmental responsibility among our global supply chain can be found in the
263、 Supply Chain Environmental Responsibility section on page 49.Responsible Business Alliance(RBA):IBM is a founding member of the RBA,a nonprofit industry group that enables its members to strive for continuous improvement in the social,environmental,and ethical responsibility of their companies,and
264、upstream supply chains.We require our first-tier suppliers of hardware,software,and services(as well as IBMs internal operations)to adhere to the RBA Code of Conduct,which contains provisions on labor,health and safety,environmental requirements,ethics,and management systems.The RBA code is the foun
265、dation for the social and environmental management system criteria that we require our suppliers to maintain.To help suppliers meet our requirements,we provide and facilitate education,including online access to the RBA learning academy that we augment with IBM developed materials.We regularly updat
266、e these programs to address areas where assessments have revealed needed improvement.We encourage our suppliers to publish ESG reports to help drive greater supply chain transparency and best practice sharing.Our top 50 Production and Logistics suppliers and top 50 Services and General Procurement s
267、uppliers for 2022 are listed on page 53.From this group,74 published ESG reports with 61 following GRI guidelines(as does IBM).Supplier Spending by Category($B)2020 2021 2022 Services and General procurement 20.3 18.8 14.0 Production procurement 3.3 2.9 3.1 Logistics procurement 0.6 0.5 0.5 Total($B
268、)24.2 22.2 17.5 Supplier Spending by Region($B)2020 2021 2022 North America 10.9 10.2 8.6 Asia Pacific 5.1 5.0 4.1 Europe,Middle East,Africa 5.5 4.9 3.1 Latin America 2.7 2.1 1.8 Total($B)24.2 22.2 17.5 Contents Introduction Governance Social Environment Appendix 36 IBM 2022 ESG Report Supplier Audi
269、ts Annually,a cross-section of our first-tier suppliers are requested to participate in RBA-Validated Audits to gauge their conformance to the RBA code and to IBMs requirements.If an RBA full audit reveals nonconformance,we work with suppliers to review their corrective action plans and suggest reco
270、mmendations to reach code conformance.IBM steadfastly follows the RBA assessment process and requires reaudits for these suppliers to measure their progress toward full conformance.In 2022,IBM suppliers participated in 60 RBA full-scope audits and 46 reaudits in 19 countries where heightened risks f
271、or social and environmental responsibility are known to exist.2022 Full Audits and Reaudits by Country Full Audit Reaudit Total China 21 13 34 Mexico 5 5 10 India 2 8 10 Thailand 3 6 9 Philippines 4 3 7 Singapore 4 3 7 Taiwan 3 3 6 Brazil 4 1 5 Korea 3 1 4 Romania 3 0 3 Malaysia 2 0 2 Hungary 1 1 2
272、Japan 0 1 1 United States 1 0 1 Bulgaria 1 0 1 Columbia 1 0 1 Vietnam 0 1 1 Czech Republic 1 0 1 Germany 1 0 1 Total 60 46 106 42%Labor 3%Ethics 6%Environmental 17%Management Systems 32%Health and Safety 60 full audits 2022 Distribution of Nonconformances by Section of the RBA Code of Conduct Conten
273、ts Introduction Governance Social Environment Appendix 37 IBM 2022 ESG Report The 60 full audits revealed a total of 324 nonconformances against the five provisional sections of the RBA Codethe 10 most frequent nonconformances are shown in the graph to the immediate right.Versus 2021,IBM observed a
274、net reduction in the number of code nonconformance reported from these RBA full audits.This was the result of the positive impact of our supplier engagement(training and consultation on the shortfalls within their RBA Self-Assessment Questionnaires),and a higher ratio of hardware suppliers audited(m
275、ost with prior RBA audit experience).In 2022,IBM collaborated with 46 suppliers to plan and execute RBA reaudits to vet corrective action plans associated with full audits performed during 2021-2022.These reaudits yielded a 71%improvement in conformance from the findings in the related full audits.I
276、n this same group,48%of suppliers attained full conformance to the RBA Code after one cycle of audit,correction action,and reaudit.We remain engaged with suppliers that show residual nonconformance and require a second corrective action plan to be developed for further assessment.As part of our RBA
277、Code conformance management system,we review full and reaudit results monthly with IBMs procurement teams and vice presidents,and quarterly with our Chief Procurement Officer.From this dialogue,we make alterations to our supplier education programs,assistance,and future sourcing patterns.15.7%20.1%9
278、.3%13.3%5.2%8.0%4.6%7.1%4.0%5.9%3.1%5.9%2.8%3.7%2.2%3.1%2.2%2.5%1.5%2.2%2022,60 Full Audit Results(Top 10 nonconformances to RBA code provisions by%)Priority&Major Nonconformance Minor Nonconformance Working Hours Emergency Preparedness Freely Chosen Employment Wages and Benefits Occupational Safety
279、 Occupational Injury and Illness Non-Discrimination Audits and Assessments Legal and Customer Requirements Food,Sanitation and Housing 18.8%9.7%13.5%8.5%1.2%1.2%0.6%0.3%0.3%1.2%2.6%2.6%2.4%2.4%2.4%7.9%5.6%3.8%3.5%2.9%2022,Improved Nonconformance Rates from Reaudits(%nonconformance to RBA Code provis
280、ions)Full Audits Reaudits Working Hours(Lab)Emergency Preparedness(H&S)Occupational Safety(H&S)Freely Chosen Employment(Lab)Wages and Benefits(Lab)Management Accountability and Responsibility(Mgt)Occupational Injury and Illness(H&S)Audits and Assessments(Mgt)Non-Discrimination(Mgt)Supplier Responsib
281、ility(Mgt)Contents Introduction Governance Social Environment Appendix 38 IBM 2022 ESG Report Modern Slavery and Forced Labor Over the past decade,there has been growing realization of the circumstances surrounding the involuntary exploitation of individuals under modern slavery and the potential fo
282、r forced labor in extended supply chains.Through our membership in the RBA,we have been active in addressing this issue.In 2020,RBA membership adopted a code change that explicitly addressed parameters to prevent forced labor in the supply chain.We have built upon the RBA code provisions to develop
283、online training for our buyers and employees and have collaborated with external parties to create a technology platform to assist multi-stakeholders in interrupting modern slavery.Annually,we publish two reports in response to Australian and United Kingdom legislation with details on our activities
284、 to combat modern slavery and forced labor.These reports are updated each June and are available on our IBM Impact website.Responsible Minerals Sourcing Since the passage of Section 1502 of the Dodd-Frank Financial Reform Act of 2010,our focus has been to ensure that 3TG minerals(tantalum,tin,tungst
285、en,and gold)used in our products do not contribute directly or indirectly to armed groups in the Democratic Republic of the Congo and adjoining countries.We deploy a multifaceted approach that includes robust policies and practices,as well as external collaboration,to reach these objectives.Our resp
286、onsible minerals sourcing policy is aligned with the framework of the Organisation for Economic Co-Operation and Development(OECD)Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas(CAHRAs),including Annex II and the related supplements pertain
287、ing to downstream companies.IBM has expanded its efforts to include ethically sourced cobalt,following the approach we built with our suppliers on 3TG.We are an active member of the Responsible Minerals Initiative and engage directly with our in-scope suppliers to collaborate and build capacity,to a
288、ssure lasting progress.We require in-scope suppliers to source 3TG minerals from ethical smelters or refiners(SORs)that are conformant or active in a recognized third-party validation scheme,or from 100%recycled scrap sources.IBM pairs skilled members of our responsible minerals team with first-tier
289、(and upstream)suppliers to work on training,best practice sharing,and overcoming the challenges of a dynamic market environment where SOR status changes occur and must be adapted to.Our working relationships span multiple layers of the supply chain,in which many interrelationships exist,in order to
290、sustain progress.As a complementary activity,IBMs Responsible Minerals team maintains communications with our research community to keep them abreast of the challenges in the marketplace associated with minerals sourcing.This can help to influence future development of products.As an example,the IBM
291、 Almaden Research Center has invented a battery technology free of nickel and cobalt,which could potentially help eliminate the need for critical metals in battery production and transform the long-term sustainability of many elements of our energy infrastructure.Our annual Conflict Minerals Report(
292、CMR),available in May,will include information on our in-scope suppliers use of conformant 3TG SORs in 2022.A library of current and past CMRs in addition to our Responsible Minerals policy,due diligence process,and our white paper“IBMs Journey in Responsible Minerals Sourcing,”are available on IBMs
293、 Responsible Minerals website.Our working relationships span multiple layers of the supply chain,in which many interrelationships exist,in order to sustain progress.Contents Introduction Governance Social Environment Appendix IBMs Global Supplier Diversity Program,in existence for over 50 years,oper
294、ates in all countries where we do business,and diverse suppliers provide products and services for each of our procurement categories.We require our first-tier suppliers to report their own diverse supplier expenditures that are utilized in support of IBM contracts.Contents Supplier Diversity We rec
295、ognize that a diverse supplier base is integral to our companys profitability and strategic objectives solidifying the connection between customer satisfaction and success in the marketplace.Our supplier diversity program*includes suppliers that are majority owned,operated,and controlled by people f
296、rom a racial or ethnic minority(as defined in each applicable country or region),women,military veterans,LGBTQ+individuals,or people with diverse abilities.Learn more about our program at the IBM Global Procurement website.Introduction Governance Social Environment Appendix Building and maintaining
297、a community of diverse suppliers increases IBMs opportunity to hear new ideas,apply different approaches,and gain access to additional solutions that respond to customer needs.Such collaboration helps IBM deliver innovation,quality products,and world-class service to a growing global marketplace.IBM
298、 has committed to dedicating 15%of our first-tier supplier diversity spending to Black-owned businesses by 2025.In 2022,6.9%of our first-tier supplier diversity spend was with Black-owned suppliers.Supplier Diversity Spend($B)*2022 First-Tier U.S.1.1 Non-U.S.0.45 First-Tier and Second-Tier Total Wor
299、ldwide 2.0 IBM 2022 ESG Report 39 40 IBM 2022 ESG Report Environmental Impact Contents Introduction Governance Social Environment Appendix 1988:First waste recycling goal 1990:Began annual corporate environmental reporting 1991:Integrated design for environment practices into product development 199
300、4:Began annual corporate reporting of CO2 emissions 2001:First purchase of renewable electricity 2007:Published formal position on climate change 2015:Publicly supported the Paris Agreement Contents Introduction Governance Social Environment Appendix Global Environmental Management System IBM views
301、environmental leadership as a long-term strategic imperative.For more than 50 years,we have committed to environmental responsibility in all our business activitiesa commitment formalized by our first corporate environmental policy in 1971,which integrated environmental responsibility throughout the
302、 fabric of our business.IBMs corporate environmental policy provides the strategic framework for the companys global environmental management system(EMS).We have maintained an EMS for decades and continually update it to reflect our companys intersections with environmental matters.Setting and execu
303、ting against voluntary goals to drive continual improvement is an integral part of our EMS.The global scope of our EMS covers hardware product design and development,manufacturing,data centers,real estate operations,procurement,logistics,asset recovery services,and business services.Since 1997,we ha
304、ve continuously maintained our single global registration to the ISO 14001 EMS standard.We also have maintained a single global registration of our EMS to the ISO 50001 energy management systems standard since 2012.In addition,our GHG emissions quantification process is certified against the ISO 140
305、64-1:2018 standard and our GHG emissions inventory and disclosures are verified with limited assurance by an independent third-party using the ISO 14064-3:2019 standard.Stakeholder Engagement We proactively engage and collaborate with stakeholders from a cross-section of nongovernmental organization
306、s(NGOs),government agencies,businesses,industry associations,investors,academia,communities,and employees on environmental matters.Some examples include:The Climate Registry(TCR)As a longtime proponent of transparency in environmental reporting,we supported the development of the recently launched N
307、et-Zero Portal by TCR.Since 2020,we have participated in TCRs working group defining the principles,objectives,framework,and questionnaire in support of this initiative.The Net-Zero Portal is a public,online platform that collects information on“net zero”GHG pledges made by organizations and how ent
308、ities plan to meet their commitments and their progress.National Science Foundation(NSF)Convergence Accelerator IBM Research has partnered with OntoChem,the University of Pittsburgh,Cornell University,and NuMat Technologies with additional guidance from the Semiconductor Industry Association(SIA)PFA
309、S Consortium and the Division of the National Toxicology Program National Institute of Environmental Health Sciences(DNTP/NIEHS)to help accelerate the discovery of alternatives to per-and polyfluoroalkyl substances(PFAS),which are concerning because of their persistence in the environment and their
310、potential for toxicity.This project,centering on the development of a PFAS Toolkit for Innovating Replacements(PFASTIR),is one of 16 multidisciplinary teams selected to participate as part of the NSFs Convergence Accelerator programs 2022 cohort for Track I:Sustainable Materials for Global Challenge
311、s.Southwest Urban Corridor Integrated Field Laboratory Led by Arizona State University and funded by a five-year grant by the U.S.Department of Energys Office of Science,IBM Research,in partnership with the other two major public universities in Arizona,two national laboratories and other local stak
312、eholders,will help advance urban climate solutions by researching the effects of extreme heat,atmospheric pollutants,and limited water supply,especially for Arizonas vulnerable communities.UN Science-Policy-Business Forum on the Environment(UN-SPBF)As a founding member,we continue to work with the U
313、N-SPBF to demonstrate how data and advanced information technology can underpin new solutions to persistent environmental problems.In 2022,representatives from IBM Research and IBM Software presented on technology and transformation at the 4th Global Session of the UN-SPBF.Refreshed in 2021,our 21 e
314、nvironmental sustainability goals establish transparent targets that address:Energy and climate change Conservation and biodiversity Pollution prevention and waste management Supply chain and value chain Environmental management system IBM 2022 ESG Report 41 Energy and Climate Change 42 IBM 2022 ESG
315、 Report Our energy and GHG emissions goals and reporting cover facilities owned or leased by IBM,inclusive of Red Hat.These facilities include IBM data centers located in facilities managed by third parties where we do not procure the energy or control the operations of the buildingsalso known as co
316、-location data centers.Our goals for energy efficiency and conservation,renewable electricity procurement and GHG emissions reduction include:Procure 75%of the electricity IBM consumes worldwide from renewable sources by 2025,and 90%by 2030.Reduce IBMs operational GHG emissions 65%by 2025 against ba
317、se year 2010,adjusted for acquisitions and divestitures.Reach net-zero operational GHG emissions by 2030,using feasible technologies to remove emissions in an amount which equals or exceeds IBMs residual emissions.Correspondingly,aim for residual emissions of 350,000 metric tons(MT)of CO2 equivalent
318、 or less by 2030.With reference to the voluntary Greenhouse Gas Protocol,our GHG emissions reduction and removal goals address Scope 1 and Scope 2(market-based)emissions,as well as Scope 3 emissions associated with electricity consumption at third-party co-location data centers.Implement a minimum o
319、f 3,000 new energy conservation projects to avoid the consumption of 275,000 megawatt-hours(MWh)of energy from 2021 to 2025.Improve average data center cooling efficiency 20%by 2025,against base year 2019.Our GHG emissions reduction goals achieve a rate of reduction that exceeds what scientists from
320、 the UN Intergovernmental Panel on Climate Change(IPCC)indicate is necessary to limit Earths warming to 1.5 degrees Celsius above pre-industrial levels.Energy Conservation During 2022,we implemented 519 energy conservation projects across more than 150 locations globally,avoiding 71,000 MWh of energ
321、y consumption and 25,600 MT of CO2 emissions,saving$9.5 million.1 Our efforts included strategic adjustments to lighting levels,temperature,and other building systems to avoid unnecessary energy consumption as we adapted to new levels of onsite working.Most of our data centers now incorporate hot/co
322、ld aisle containment.2 In addition,we continued to execute projects aimed at enhancing the energy efficiency of both cooling and IT equipment,retrofitting lighting systems,and optimizing the operational efficiency of our building infrastructure.1In measuring performance against IBMs energy conservat
323、ion goal,we only include the first years savings from projects.Accordingly,IBMs total energy savings and CO2 emissions avoidance from these projects are greater than this simple summation of the annual results.We do not include reductions in energy consumption resulting from downsizings,the sale of
324、operations or cost-avoidance actions,such as fuel switching and off-peak load shifting,in our energy conservation results.2Hot/cold aisle containment is a strategy used in data centers to improve energy efficiency and reduce cooling costs.It involves organizing server racks in a way that achieves th
325、e greatest separation of hot exhaust air and cold intake air.In 2021,we set a goal of 3,000 energy conservation projects by 2025.We have completed 1,455 as of year-end 2022,avoiding 161,000 MWh of energy consumption.From 1990 through 2022,we conserved 10 million MWh of energyequivalent to more than
326、triple our current annual energy consumptionsaving$680 million and avoiding 4.63 million MT of CO2 emissions.Contents Governance Introduction Social Environment Appendix 64%IT server efficiency projects 1%Other projects 2%UPS(Uninterruptable Power Supply)related projects 3%Lighting related projects
327、30%Heating and cooling related projects 2022 Energy Conservation Savings by Project Type 1Power usage effectiveness(PUE)is the ratio of the total energy consumed by the data center divided by the energy consumed by the IT equipment.The closer the value is to 1,the more energy efficient the data cent
328、er and its cooling delivery are.2Our 2019 PUE baseline was updated to include only those data centers that remained with IBM after its managed infrastructure services business was separated.Contents Data Center Energy Efficiency Our approach to managing and enhancing the energy efficiency of our dat
329、a centers is comprehensive,encompassing various strategies such as optimizing existing space to improve workload per area,upgrading IT infrastructure to reduce energy consumption,and leasing new,more efficient spaces.We measure the power usage effectiveness(PUE)1 at the data centers we operate where
330、 possible and obtain PUE data from landlords of co-location data centers.For data centers where we are unable Introduction Governance Social Environment Appendix data.Using this approach,we calculated our 2022 weighted average PUE to be 1.52 compared to our baseline PUE of 1.552 in 2019.New requirem
331、ents for co-location landlords implemented in our leasing strategy have begun to yield results,and our ongoing efforts to enhance the utilization of our data centers offer a viable route towards accomplishing our goal to improve the average cooling efficiency of our data centers by 20%by 2025 agains
332、t our baseline.to obtain PUE data,we utilize industry average IBM 2022 ESG Report 43 44 IBM 2022 ESG Report Use of Renewable Electricity In 2021,64.2%*of the electricity consumed across our global operations came from renewable sources.That total includes 49.3%renewable electricity directly contract
333、ed from our power suppliers,in addition to the other 14.9%that is a part of the remaining electricity we obtain directly from the grid.*When reporting our consumption of renewable electricity,we count only what is generated in the grid regions where our consumption actually occurs.We do not purchase unbundled renewable energy certificates representing energy we cannot consume,which would inflate o
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