1、2023 ESG REPORT IBM Impact-_,_ IXI Contents Introduction Governance Social Environment Appendix IBM 2023 ESG Report About this Report This report covers our progress and performance in 2023.The content of this report is informed by collaboration and engagement with communities,clients,stockholders,a

2、nd employees,and considers standards and initiatives such as the Global Reporting Initiative(GRI)Standards,the Sustainability Accounting Standards Board(SASB),the Task Force on Climate-Related Financial Disclosures(TCFD),the Stakeholder Capitalism Metrics,and the United Nations Sustainable Developme

3、nt Goals(SDGs).More information on IBMs Environmental,Social and Governance(ESG)reporting can be found on the IBM Impact website.An ESG Data Summary with reference to the GRI and SASB standards and the UN SDGs can be found in the Appendix of this report on page 60.We conduct regular assessments that

4、 identify topics important to our stakeholders and inform our ESG strategy.We are currently performing a double materiality assessment as required in accordance with the Corporate Sustainability Reporting Directive.Our assessments are solely intended to reflect priority ESG issues and should not be

5、construed as a characterization 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 fi

6、nancial reporting.We regularly refresh these analyses to capture changing circumstances and to adopt a more dynamic approach to identifying key ESG topics.The current year data presented covers our global operations from January 1,2023 to December 31,2023.Certain employee-related data and programs p

7、resented may not include or may not be applicable to certain acquired or non-wholly owned subsidiaries.Certain supplier data presented may not include or may not be applicable to certain business units or acquired or non-wholly owned subsidiaries.On November 3,2021,the company completed the separati

8、on of its managed infrastructure services unit.Accordingly,unless 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 and 2023 information.To the extent any hi

9、storical information is updated or recast,the information will be disclosed accordingly.Information about our business and financial performance is provided in the 2023 IBM Annual Report.IBM also completed an external limited assurance audit of our 2023 greenhouse gas(GHG)emissions inventory and the

10、 underlying data and calculation processes.Forward-Looking and Cautionary Statements Any forward-looking statement in this report speaks 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

11、based on IBMs current assumptions regarding future business and performance;these statements,by their nature,address matters that are uncertain to different degrees.Forward-looking statements involve a number of risks,uncertainties and other factors that could cause actual results to be materially d

12、ifferent.1 About IBM IBM is addressing the hybrid cloud and artificial intelligence(AI)opportunity with a platform-centric approach,focused on providing client value through a combination of technology and business expertise.We provide integrated solutions and products that leverage:data,information

13、 technology,deep expertise in industries and business processes,with trust and security and a broad ecosystem of partners and alliances.Our hybrid cloud platform and AI technology and services capabilities support clients digital transformations and help them engage with their customers and employee

14、s in new ways.These solutions draw from an industry-leading portfolio of capabilities in software,consulting services anda deep incumbency in mission-critical systems,allbolstered by one of the worlds leading researchorganizations.Contents Introduction Governance Social Environment Appendix 2 IBM 20

15、23 ESG Report Introduction Letter from Our Chairman and CEO 5 Our ESG Goals 7 Accountability for ESG at IBM 9 Human Rights at IBM 10 Ethical Impact|Governance Corporate Governance and the Board 12 Business Ethics 16 Responsible Technology 17 Policy Advocacy 21 Equitable Impact|Social Our Culture 23

16、Supporting Our Employees 24 Diversity and Inclusion 27 Community Development 35 Supply Chain Social Responsibility 39 Environmental Impact|Environment Global Environmental Management System 44 Energy and Climate Change 46 Conservation and Biodiversity 52 Pollution Prevention and Waste Management 54

17、Supply Chain Environmental Responsibility 57 Solutions for Sustainability 58 Appendix ESG Data Summary 60 Awards and Recognition Highlights 71 Top Suppliers 72 IBM 2023 ESG Report 3 Contents Introduction Governance Social Environment Appendix IBM 2023 ESG Report Contents Introduction Governance Soci

18、al Environment Appendix Introduction Letter from Our Chairman and CEO Im proud to present this 2023 IBM Impact report,which highlights our progress across the three pillars of our IBM Impact framework:strengthening business ethics,fostering greater equity in the communities in which we work and live

19、,and protecting our environment.As IBMers,we believe in leveraging technology to make a transformative impact on business and society.At the same time,rapid advances in powerful technologies like AI must be balanced by responsible scaling and deployment strategies.Last year,IBM released watsonx.gove

20、rnance,an end-to-end toolkit for AI governance that enables responsible,transparent and explainable AI workflows.In addition,IBM and Meta announced the formation of the AI Alliance,a group of more than seventy industry and academic leaders joining together to advance open,safe and responsible AI.We

21、recognize that promoting equitable access to AI skills is also crucial to tomorrows workforce.Internally,we created the watsonx challenge for IBMers around the world to grow their knowledge through hands-on experience in AI for business.Externally,we announced a new goal to train 2 million learners

22、in AI skills by the end of 2026 through expanded education collaborations and new generative AI coursework on IBM SkillsBuild.We have already engaged over 11 million learners on our platforms,evidence of the substantial progress weve made towards our goal to train 30 million people by 2030.We also a

23、pplied technology in new ways to make our worlds essential systems more efficient and sustainable.We expanded the IBM Sustainability Accelerator program,which leverages AI and other leading-edge technologies to help populations vulnerable to environmental threats.In addition to clean energy and agri

24、culture projects,the initiative grew to include water and city resiliency projects and earned the U.S.Chamber of Commerce Foundation Citizens Award for“Best Sustainability Program.”In addition,last year we beat our 2025 target for reducing IBMs operational GHG emissions,a solid milestone towards our

25、 goal of net-zero operational GHG emissions by 2030.These and other initiatives earned IBM various honors,including recognition by Ethisphere as one of the Worlds Most Ethical Companies and by Time Magazine as one of the 100 Most Influential Companies.As our progress in 2023 showed,IBM is committed

26、to trusted technology as a force for good.The application of transformative technologies like AI and hybrid cloud is enabling productivity and business transformation at a scale and speed previously unimaginable.Im deeply grateful to the many IBMers throughout the world who are helping us to shape a

27、nd lead this moment responsibly.IBM 2023 ESG Report 5 Contents Introduction Governance Social Environment Appendix Arvind Krishna Chairman and Chief Executive Officer IBM Impact IBM is focused on the challenges and complexities facing todays world.Our ESG reporting embodies this philosophy throughth

28、e threepillars of our IBM Impactframework.Environmental Impact Creating better pathways to conserve natural resources,reduce pollution,and minimize climate-related risks Contents IBM 2023 ESG Report 6 Introduction Governance Social Environment Appendix Ethical Impact Creating innovations,policies,an

29、d practices that prioritize ethics,trust,transparency,and above all-accountability Equitable Impact Creating spaces and opportunities for everyone by focusing on diversity,equity and inclusivity within IBM,as well as globally Our ESG Goals(1 of 2)As detailed throughout this report,our commitment to

30、creating Ethical Impact,Equitable Impact,and Environmental Impact includes goals.Progress for a subset of these goals for calendar year 2023 is as follows:Ethical Impact IBM 2023 ESG Report 7 Contents Introduction Governance Social Environment Appendix Topic Goal Progress Status Business Ethics Achi

31、eve 100%employee participation in our annual Business Conduct Guidelines(BCG)program.We attained 100%employee participation in our annual BCG program in 2023.ACHIEVED IN 2023 Responsible Technology Train 1,000 technology suppliers in technology ethics by 2025.After exceeding our goal to train 1,000

32、ecosystem partners in technology ethics in 2022,we announced our goal to train technology suppliers.In 2023,we trained more than 600 suppliers in technology ethics towards this goal.Prepare our company and clients for responsible AI adoption aligned with IBM Principles for Trust and Transparency.In

33、2023,we released watsonx.governance,a component of watsonx designed to accelerate responsible,transparent and explainable AI workflows,and led the creation of the AI Alliance,an open community to accelerate responsible AI innovation.ACHIEVED IN 2023 Policy Advocacy Engage in responsible policy advoc

34、acy to drive growth and innovation across the globe on topics including,AI,cybersecurity,trade,data privacy and workforce skills.In 2023,IBM advanced a risk-based approach to the regulation of AI and a skills-first approach to filling critical tech jobs through activities such as publishing a policy

35、makers guide to responsible AI foundation models and supporting the introduction of two U.S.bipartisan workforce development bills.ACHIEVED IN 2023 Diversity and Inclusion Annual Incentive Program for executives includes a modifier to drive accountability in improving executive diversity representat

36、ion.Executive representation of women globally,as well as Black and Hispanic executives in the U.S.,excluding Red Hat,changed by+1.1 points,-0.2 points and+0.6 points,respectively,in 2023.These results did not increase or decrease the incentive score.The executive incentive program will continue to

37、include a modifier and our goal remains to improve executive representation in these areas.Supply Chain Responsibility Engage 100%of IBM Global Procurement suppliers on sound practices including social and environmental responsibility,ethics and risk planning.In 2023,IBM Global Procurement engaged 1

38、00%of our suppliers on sound practices.ACHIEVED IN 2023 Equitable Impact Topic Goal Progress Status Diversity and Inclusion$250 million investment in apprenticeships and new-collar programs by 2025.Since 2022,we have invested$100.3 million towards apprenticeships and new-collar programs,in line with

39、 expectations.Maintain our longstanding practice of pay equity,ensuring equal pay for equal work.IBM continues to pay 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.ACHIEVED IN 2023 Communi

40、ty Development Skill 30 million people globally by 2030.Since 2021,over 11.5 million learners have engaged with free IBM training content.Log 4 million volunteer hours by 2025.Since 2022,IBMers logged over 974,000 volunteer hours towards our goal.Supply Chain Responsibility 15%of first-tier supplier

41、 diversity spend from Black-owned suppliers by 2025.In 2023,approximately 8.5%of our first-tier supplier diversity spend was with Black-owned suppliers.Our ESG Goals(2 of 2)As detailed throughout this report,our commitment to creating Ethical Impact,Equitable Impact,and Environmental Impact includes

42、 goals.Progress for a subset of these goals for calendar year 2023 is as follows:Environmental Impact Topic Goal Progress Status Energy and Climate Change Implement a minimum of 3,000 energy conservation projects to avoid the consumption of 275,000 megawatt-hours(MWh)of energy from 2021 to 2025.Sinc

43、e 2021,we have completed 2,130 energy conservation projects as of year-end 2023,avoiding an estimated 256,000 MWh of energy consumption.Procure 75%of the electricity IBM consumes worldwide from renewable sources by 2025,and 90%by 2030.In 2023,our renewable electricity procurement represented 70.6%of

44、 our total electricity consumption,which keeps us on track to meet our 2025 goal.Reduce IBMs operational GHG emissions 65%by 2025 against base year 2010,adjusted for acquisitions and divestitures.In 2023,we reduced our operational GHG emissions 68.5%against base year 2010,adjusted for acquisitions a

45、nd divestitures,meeting our goal of 65%emissions reduction by 2025 two years early.ACHIEVED IN 2023 Reach net-zero operational GHG emissions by 2030.We continue to make progress towards net-zero operational GHG emissions by 2030.IN PROGRESS Conservation and Biodiversity Achieve a year-to-year reduct

46、ion in water withdrawals at larger IBM locations in water-stressed regions.In 2023,water withdrawals at these locations increased by 3.4%versus 2022 as a result of employees returning to the office.NOT ACHIEVED IN 2023 Source paper and paper/wood-based packaging directly procured by IBM from forests

47、 that are sustainably managed and certified as such.In 2023,99.8%(based on spend)of the paper and paper/wood-based packaging IBM directly procured worldwide came from suppliers that warranted that the source was derived from sustainably managed forests.Plant 50 pollinator gardens at IBM locations gl

48、obally by year-end 2023 to support biodiversity.We exceeded our goal,with 70 pollinator gardens planted globally at IBM locations by year-end 2023.ACHIEVED IN 2023 Pollution Prevention and Waste Management Divert 90%(by weight)of IBMs total nonhazardous waste from landfill and incineration by 2025 t

49、hrough reuse,recycling,composting and waste-to-energy processes.Use waste-to-energy processes for no more than 10%(by weight)of the diverted waste.In 2023,we diverted 94.2%(by weight)of our total nonhazardous waste from landfill and incineration.Of the total amount diverted,10%(by weight)was sent to

50、 waste-to-energy processes thereby meeting our goal.ACHIEVED IN 2023 Eliminate nonessential,single-use plastic items(including cups,straws,cutlery,plates,carry bags and food containers)from IBM-managed cafeteria operations globally by 2025.As of year-end 2023,we eliminated all nonessential,single-us

51、e plastic items at 58 of the 60 IBM-managed cafeteria operations worldwide.Solutions for Sustainability Document 100 client engagements or research projects in which IBM solutions have enabled demonstrable environmental benefits by 2025.Since 2021,we have documented 72 such engagements or projects.A

52、pproximately 85%of water withdrawals at these locations are for domestic consumption in the workplace and heating,ventilating and air conditioning of buildings.Introduction IBM 2023 ESG Report 8 Contents Governance Social Environment Appendix Accountability for ESG at IBM IBMs long-term performance

53、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 to integrity,trust and transparency,and inclusion.Under the guidance a

54、nd 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 function coordinates day-to-day ESG and corporate responsibility-related acti

55、vities and is led by the Vice President&Chief Impact Officer who reports to the Senior Vice President,Marketing and Communications&Chief Communications Officer.Contents Introduction Governance Social Environment Appendix IBM 2023 ESG Report 9 Committee Responsibilities Members IBM Board of Directors

56、 The Board and its committees have oversight responsibility for ESG-related matters and are continuously engaged with senior management on risk management and activities,policies,and progress on these matters.The Directors and Corporate Governance Committee:Oversees policies and practices related to

57、 corporate social responsibility,sustainability and other environmental,social and governance matters.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

58、,diversity and inclusion,and other management resources programs.The Audit Committee:Oversees internal controls regarding publicly reported environment,social and governance data,as well as compliance with legal and regulatory requirements.ESG Executive Steering Committee The ESG Executive Steering

59、Committee provides leadership and direction on key corporate responsibility issues and organization-wide goals.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 a

60、rea is responsible for developing its specific goals and strategies.-Chair:Vice President&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&Ch

61、ief Leadership,Culture,and Inclusion Officer-Vice President&Chief Privacy and Trust Officer-Vice President&Chief Procurement Officer-Vice President&Controller,Environmental,Social and Governance-Vice President&Global Head of Product Management and Strategy,IBM Sustainability Software-Vice President,

62、Investor Relations-Vice President,Government and Regulatory Affairs-Vice President,Assistant General Counsel&Corporate Secretary-Vice President&Chief Risk Officer-Global Managing Partner,IBM Consulting ESG Working Group The ESG Working Group executes and maintains awareness of ESG matters occurring

63、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 across IBM and meets at least monthly to review key policy a

64、nd 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 Environment Appendix Human Rights at IBM At IBM,we have always set h

65、igh 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 standards such as the UN Guiding

66、Principles on Business and Human Rights,the Universal Declaration of Human Rights,and the International Labour Organization(ILO)Declaration on Fundamental Principles and Rights at Work.In 2021 and 2022,we worked with a nonprofit sustainability and human rights organization to identify the salient hu

67、man rights issues 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 overseeing our human rights initiatives.In 2024,we will evaluate our due diligence approach to ide

68、ntify areas in which we can advance our human rights initiatives.Salient Human Rights Issues IBM 2023 ESG Report 10 Product and Research Misuse Inequality/Discrimination via Products Human Rights in the Supply Chain Privacy and Cybersecurity Ethics and Corruption Human Autonomy and Dignity Freedom o

69、f Expression and Access to Information Labor Rights at IBM Environment and Human Rights Right to Science Contents Introduction Governance Social Environment Appendix Ethical Impact IBM 2023 ESG Report Contents Introduction Governance Social Environment Appendix Corporate Governance and the Board Cor

70、porate Governance IBMs Board of Directors has long adhered to governance principles designed to ensure the continued vitality of the Board and excellence in the execution of its duties.IBMs corporate governance principles include a policy of requiring a majority of the Board to be independent direct

71、ors,the importance of equity compensation to align the interests 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 Guide

72、lines reflect IBMs principles on corporate governance matters.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 onl

73、y by the Board or a board committee,and would be disclosed 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

74、-Independent Lead Director with robust and well-defined responsibilities-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 an

75、d committee refreshment,with focus on diversity and the optimal mix of skills and experience-Annual review of the Board leadership structure-Director overboarding policy Stockholder Rights and Accountability-Annual election of all directors-Majority voting for directors in uncontested elections-Stoc

76、kholder special meeting right-Proxy access-No stockholder rights plan-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 Pu

77、rpose of a Corporation-Stockholder right to remove directors IBM 2023 ESG Report 12 Contents Introduction Governance 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 leadershi

78、p experience at major domestic 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 co

79、nstituencies.The Board includes 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

80、 Governance Committee and the Board believe that the above-mentioned 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.Optimal

81、 Mix of Skills and ExperienceofDirectors IBMs directors collaboratively contribute significant experience in the areas most relevant to overseeing our business and strategy.The skills and experience of our Board include,but are not limited to:-Industry leaders with deep executive and oversight exper

82、ience;-Global operational experience to oversee a business of IBMs scale,scope and complexity;-Technology,cybersecurity and digital transformation experience;-Key insight into IBMs regulatory environment;and-Diversity of backgrounds and experiences.Independent and Diverse Board Independence 12 Indep

83、endent 1 Non-Independent 92%Gender and Ethnic Diversity38%3 Women and 3 Ethnically Diverse Directors Average Tenure 2 10 Years 5 5-10 Years 6 5 Years Average 5.9 years IBM 2023 ESG Report 13 Contents Introduction Governance Social Environment Appendix IBM Board of Directors-Experience and Skills Dir

84、ector Marianne C.Brown Thomas Buberl David N.Farr Alex Gorsky Michelle J.Howard Arvind Krishna Andrew N.Liveris F.William McNabb III Michael Miebach Martha E.Pollack Peter R.Voser Frederick H.Waddell Alfred W.Zollar Client Industry Expertise Organizational Leadership and Management Global Operations

85、 CFO Specific Risk Oversight/RiskManagement Exposure Technology,CybersecurityorDigital Academia Government/Regulatory,Business Associations or Public Policy Public Board Gender Identity Female Male Male Male Female Male Male Male Male Female Male Male Male Race and/or Ethnicity White/Caucasian White

86、/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.Energy Financial Services&Insurance Healthcare Government Manufacturing

87、 Research&Development Information Technology Chemicals IBM 2023 ESG Report 14 Contents Introduction Governance Social Environment Appendix Risk Management We maintain a consistent,systemic,and integrated approach to enterprise risk management(ERM)that is designed to identify,mitigate,and manage sign

88、ificant risksand align with recognized standards such as the COSO ERM framework and the ISO 31000 standard.Weassess risks across the organization to maintain a holistic,enterprise-level view of risks arising from evolving regulatory,financial,and geopolitical environments aswell as from our operatio

89、ns,strategic planning and execution.This assessment includes evaluation of ESG-related risks.The IBM Board of Directors is responsible for overseeing managements execution of risk oversight,for assessing IBMs approach to risk management,and the full Board regularly reviews IBMs enterprise risk manag

90、ement framework and processes.IBMs senior management is responsible for assessing and managing IBMs various exposures to risk on a day-to-day basis,including the creation of appropriate risk management programs and policies.Management regularly reports to the Board and its committees on a variety of

91、 risks.The ERM program,which drives senior management decision-making,is led by our Chief Risk Officer who reports up through our Chief Financial Officer.We have developed tools that employ analytics and AI technologies to assist our ERM processes and utilize a Country Risk Scorecard to identify and

92、 assess emerging risk areas.By leveraging a series of key risk indicators,we can timely and proactively respond together with country and regional leadership.We promote a company culture of risk awareness through online education and mandatory training in areas such asbusiness integrity and cybersec

93、urity including a Risk Academy,where all employees can take courses and earnbadges on risk management awareness and skills.Additionally,all employees are encouraged to report potential risks through numerous channels(anonymously if preferred)or to local management.Environmental and Climate-Related R

94、isks 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 profile.IBM,like other companies,is subject to potential climate-related risks and costs

95、,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 or required by clients,regulators and others.Our senior management assesses the s

96、ignificance 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 Directors and Corporate Governance Committee.We do not expect compliance with enviro

97、nmental 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 IBMs AI,hybrid cloud,and other technologies to assist clients with managing their cl

98、imate-related risks.IBM 2023 ESG Report 15 Contents Introduction Governance Social Environment Appendix Business Ethics Every year,employees worldwide participate in IBMs Business Conduct Guidelines(BCGs)program to certify their understanding of our code of business conduct and ethics,and recommit t

99、o doing business with integrity.The IBM BCGs policy and the accompanying online course are available in multiple languages and address the ethical dilemmas that employees may face day-to-day.During 2023,IBM again achieved 100%participation in the annual BCGs program.In addition,IBM Trust and Complia

100、nce conducts extensive in-person and virtual training on public procurement,business amenities,anti-corruption,speaking up and non-retaliation,gatekeeper responsibility and fraud prevention matters.Sponsored and attended by our business leaders,these training initiatives set the tone from the top an

101、d are customized to highlight the risks a particular audience might face.Various tools and approaches such as live polling and role plays,are leveraged to drive engagement and participation.Our internal reporting channel enables employees to report concerns or suspected violations of our BCGs and un

102、ethical 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 allows us to intervene early,investigate and remediate.Our annual Global Integrity Survey enables employees to prov

103、ide feedback on their perception of ethics and integrity within IBM.The insights gained from the survey help us gauge employee sentiment regarding speaking up,retaliation and“doing the right thing.”Survey results are also used to implement program changes and enhance training on targeted topics.Inte

104、grity in our Daily Operations IBM is committed to principles of business ethics and lawful conduct.It is IBMs policy to conduct itself ethically and lawfully in all matters and to maintain IBMs high standards of business integrity.IBM Business Conduct Guidelines Available in 26 languages and accompa

105、nied by an annual online course and certification,which IBM employees are required to complete.IBM Code of Conduct for Business Partners The standards of business conduct and business practices with which IBM requires IBM Business Partners to comply.Supply Chain Code of Conduct First-tier suppliers

106、of hardware,software,and services are required to adhere to the Responsible Business Alliance(RBA)Code of Conduct which outlines requirements for labor,health and safety,environmental,ethics and management systems.IBMs own operations also adhere to the RBA Code of Conduct.IBM Policies Govern interna

107、l and external company-wide actions including:-Business conduct and ethics-Reciprocity-Workforce diversity-Health and safety-Data privacy-Diverse business relationships-Environmental affairs-Quality-Politics-Human rights principles-Global employment standards-Cognitive principles-Statements on indiv

108、idual issues IBM 2023 ESG Report 16 Contents Introduction Governance Social Environment Appendix Responsible Technology Technology Ethics For more than a century,IBM has earned the trust of our clients and society by ushering powerful new technologies into the world responsibly and with clear purpos

109、e.We maintain this trust as society explores the opportunities presented by transformative technologies,such as AI,through our continued commitment to ethics by applying the IBM Principles for Trust and Transparency.At the center of IBMs responsible technology efforts is our AI Ethics Board,who infu

110、se IBMs principles into business and product decision-making.The AI Ethics Board is steered by a diverse set of senior leaders from across the company and is supported by a strong advocacy network and our AI Ethics Focal Points within various business units.In addition to actively supporting the pri

111、nciples,IBMs AI Ethics Board shares thought leadership around emerging issues,and in 2023,published various white papers,including Augmenting Human Intelligence the IBM Point of View and Foundation Models:Opportunities,Risks and Mitigations.The Foundation Models white paper is the basis for IBMs AI

112、Risk Atlas in the product documentation of our AI platform,watsonx.The IBM Principles for Trust and Transparency are the guiding values that distinguish IBMs approach to AI ethics.-The purpose of AI is to augment human intelligence-Data and insights belong to their creator-Technology must be transpa

113、rent and explainable The Pillars of Trust are our foundational properties for AI ethics that support the Principles.Explainability Good design does not sacrifice transparency in creating a seamless experience.Fairness Properly calibrated,AI can assist humans in making fairer choices.Robustness As sy

114、stems are employed to make crucial decisions,AI must be secure and robust.Transparency Transparency reinforces trust,and the best way to promote transparency is through disclosure.Privacy AI systems must prioritize and safeguard consumers privacy and data rights.IBM 2023 ESG Report 17 Contents Intro

115、duction Governance Social Environment Appendix Advancing a smart risk-based approach to the regulation of artificial intelligence was one of our policy advocacy priorities in 2023.Last year,IBMs Chief Privacy and Trust Officer,Christina Montgomery,addressed the need for responsible AI innovation in

116、her testimony before the U.S.Senate Judiciary Subcommittee on Privacy,Technology,and the Law,and contributed to the Artificial Intelligence Commission Report as a member of the U.S.Chamber of Commerce AI Commission,and the U.S.National AI Advisory Committee(NAIAC)Year 1 Report as a NAIAC member.For

117、additional AI policy advocacy highlights from 2023 see Policy Advocacy on page 21.IBM is a“living lab”for the technology it brings to market,continually improving product capabilities that help businesses and governments use,integrate and deploy AI responsibly.Our governance frameworks are integrate

118、d into solutions like the recently released watsonx.governance,a component of watsonx designed to accelerate responsible,transparent and explainable AI workflows.Beyond the governance we embed in our own solutions,we are making excellent progress on the goal we announced last year to train 1,000 tec

119、hnology suppliers in technology ethics by 2025,with more than 600 suppliers trained at the end of 2023.IBM recently renamed the Chief Privacy Office to the Office of Privacy and Responsible Technology.This change reflects the evolution of our privacy,data and AI program as IBM and our clients prepar

120、e for AI regulatory requirements and demonstrates our commitment to remain at the leading edge of responsible technology now and in the future.Collaborations and initiatives-In early 2023,IBM reaffirmed its commitment to the Rome Call for AI Ethics to champion ethical approaches to the design,develo

121、pment and deployment of artificial intelligence.-We led the creation of the AI Alliance,a broad range of global organizations fostering an open community to enable developers and researchers to accelerate responsible AI innovation while ensuring scientific rigor,trust,safety,security,diversity and e

122、conomic competitiveness.-The Notre Dame IBM Technology Ethics Lab released its 2023-2024 Call for Proposals(CFP),“The Ethics of Large-Scale Models.”The Lab also delivered a virtual symposium on the ethical use of foundation models in enterprises,along with an Auditing AI Workshop,and a course titled

123、“Auditing AI:An Introduction.”Finally,collaborative projects between Notre Dame and IBM researchers have focused on topics,such as understanding how organizations can quantify the return on investments(ROI)in AI ethics.-IBM and 18 other enterprise companies worked together under the aegis of the Dat

124、a&Trust Alliance organization to create Data Provenance Standards,the first cross-industry metadata to bring transparency to the origin of datasets used for both traditional data and AI applications.-IBM contributed to the U.S.Department of Commerces National Institute of Standards and Technology(NI

125、ST)AI Risk Management Framework,a guidance document to help manage the risks of AI technologies.IBM also contributed to the development of a companion resource for generative AI through a NIST Generative AI Public Working Group.-IBM contributed to the Partnership on AIs“PAIs Guidance for Safe Founda

126、tion Model Deployment,”a framework for model providers to responsibly develop and deploy a range of AI models,promote safety for society,and adapt to evolving capabilities and uses.-IBM is an International Association of Privacy Professionals(IAPP)AI Governance Foundational Supporter and has support

127、ed the development of training and a new certification path for professionals working in the field of AI governance,including support to develop the IAPP Body of Knowledge.IBM 2023 ESG Report 18 Contents Introduction Governance Social Environment Appendix Cybersecurity From an enterprise perspective

128、,IBM implements a multi-faceted risk management approach to identify and address cybersecurity risks based on the NIST Cybersecurity Framework.We have established policies and procedures that provide the foundation upon which IBMs infrastructure and data are managed.We regularly assess and adjust ou

129、r technical controls and methods to identify and mitigate emerging cybersecurity risks.We use a layered approach with overlapping controls to defend against cybersecurity attacks and threats on IBM networks,end-user devices,servers,applications,data and cloud solutions.We draw heavily on our own com

130、mercial security solutions and services to manage and mitigate cybersecurity risks.IBM maintains a Security Operations Center(SOC)that monitors for threats to IBMs networks and systems,utilizing threat intelligence provided by a range of sources,including the IBM Security X-Force Exchange platform,w

131、hich maintains one of the largest compilations of threat intelligence in the world.We also rely on tools licensed from third party security vendors to monitor and manage cybersecurity risks.We periodically engage third parties to supplement and review our cybersecurity practices and provide relevant

132、 certifications.We have a global incident response process,managed by IBMs Computer Security Incident Response Team(CSIRT),that relies primarily on internal expertise to respond to cybersecurity threats and attacks.We utilize a combination of online training,educational tools,videos and other awaren

133、ess initiatives to foster a culture of security awareness and responsibility among our workforce,including responsibility for reporting suspicious activity.IBM has a third party supplier risk management program to oversee and identify risks from cybersecurity threats associated with its use of third

134、 party service providers and vendors.Risks are assessed and prioritized based,among other things,on the type of offering/engagement,supplier assessments,threat intelligence and industry practices.IBM Cybersecurity Governance Responsible for overseeing managements execution of cybersecurity risk mana

135、gement and for assessing IBMs approach to risk management IBM Boardof Directors&Audit Committee Composed of,among others,SVPs from the major business units,the SVP overseeing cybersecurity,and the SVP for Legal and Regulatory Affairs&General Counsel;the CAC is responsible for,among other things,sett

136、ing the Companys governance structure for managing cybersecurity risk and reviewing noteworthy cybersecurity incidents and strategies to prevent recurrence Cybersecurity Advisory Committee(CAC)Manages the team responsible for leading enterprise-wide information security strategy,policy,standards,arc

137、hitecture and processes for IBMs internal systems IBM Chief Information Security Officer(CISO)Coordinate with the Office of the CISO on security issues specific to particular business segments Business Unit Information Security Officers(BISOs)for each business area IBM 2023 ESG Report 19 Data Privac

138、y IBM is committed to developing policies and practices that prioritize ethics,trust,transparency and accountability.Our Principles for Trust and Transparency have built a strong foundation that enables us to successfully adapt to new eras of digital transformation and breakthroughs.To address the e

139、ver-changing regulatory environment,IBM has implemented an Integrated Governance Program(IGP)to drive a continuous compliance approach in data privacy and data governance.The IGP includes data and model clearance that was used extensively in the creation of the IBM watsonx Granite model series,decod

140、er-only foundation models for generative AI tasks for enterpriseuse.We regularly review and update the IBM Privacy Statement,translating it into multiple languages,with the continued goal to simplify the explanation of how IBM collects,uses and shares personal information.We are firmly committed to

141、the responsible stewardship of data entrusted to us by our clients.Every six months,we publish reports of inquiries we may receive from law enforcement agencies regarding data and the steps we take to protect the integrity of such information.As current and emerging technologies raise new challenges

142、 to privacy and consumer welfare,IBM remains committed to helping in the development of precise technology and policy safeguards.IBM worked with the Future of Privacy Forum on its report,Data Sharing for Research:A Compendium of Case Studies,Analysis and Recommendations,that reviewed corporate-acade

143、mic partnerships and provided practical recommendations for companies and researchers on sharing data for research.To prepare for what comes next with new technologies like neurotechnology and quantum,IBM will continue collaborating with academic,industry and government leaders to create enduring so

144、lutions.Contents Introduction Governance Social Environment Appendix IBM 2023 ESG Report 20 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.We en

145、gage policymakers and leaders globally to promote ideas that can help spur 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 build

146、ing trusted relationships with government leaders,and through partnerships 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.The IBM Policy Lab,established in 2020,convenes leaders

147、worldwide in public policy,academia,and technology to develop clear and actionable policy recommendations that leverage technology to help tackle some of todays most pressing issues.In 2023,the IBM Policy Lab released papers covering:-How governments can strengthen their cloud policies globally;-The

148、 role of technology companies in the fight against climate change;-A policymakers guide to AI foundation models;-Digital skills for the EU;-A technology workforce playbook for the U.S.;and-Policy principles to develop and implement cybersecurity reporting.IBM is committed to meaningful management an

149、d 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 consistently high ratings from independent analysts of corporate practices on lobbying

150、 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.For information on our advocacy efforts,see Diversity and Inclusion on page 27.More informat

151、ion about our public policy governance and public reporting is available on our IBM Government and Regulatory Affairs website.Contents Introduction Governance Social Environment Appendix IBM 2023 ESG Report 21 IBMs public advocacy highlights in 2023 included:-Advancing a risk-based approach to the r

152、egulation of artificial intelligence with:-Attendance by IBM CEO Arvind Krishna at the first U.S.Senate AI Insight Forum;-Testimony before the U.S.Senate Judiciary Committee on Rules for AI by IBM Vice President&Chief Privacy and Trust Officer Christina Montgomery;-Attendance by IBM SVP&Director of

153、Research Dario Gil at the AI Safety Summit in the United Kingdom;-Welcoming the White House Executive Order on AI and the introduction of The AI Research,Innovation,and Accountability Act of 2023 in the U.S.Senate;-Welcoming a provisional agreement on the worlds first comprehensive AI legislation,th

154、e European Unions AI Act;and-Joining as a signatory on the Government of Canadas voluntary AI code of conduct.-Advancing a skills-first approach to filling critical tech jobs-especially in key areas such as cybersecurity and AI-by supporting the release of the Office of the National Cyber Directors

155、National Cyber Workforce and Education Strategy,supporting the introduction of two bipartisan workforce development bills in the U.S.House of Representatives,and with testimony before the U.S.House of Representatives Education and the Workforce Committee.Contents Introduction Governance Social Envir

156、onment Appendix IBM 2023 ESG Report Equitable Impact Our Culture IBM operates in more than 175 countries and employs over 282,000 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 the industries we serve and

157、the world at large.We do this by delivering innovative products and services that maximize the productivity and efficiency of businesses while contributing positively to society.IBMers are critical to accomplishing this.By providing an inclusive environment that encourages learning and the explorati

158、on of new ideas and innovative approaches,we can make the greatest impact with our clients,partners 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,forge partnerships,and make the world work better.I

159、n 2023,our engagement and inclusion results from our annual Engagement Survey remain strong,demonstrating that our value proposition and work environment support a world class culture.In 2023,our voluntary attrition decreased when compared to each of the past two years.Contents Introduction Governan

160、ce Social Environment Appendix IBM 2023 ESG Report 23 Over 187,000 employees globally responded to the annual Engagement Survey Nearly 9 out of 10 employees who participated in the survey reported feeling empowered to express their authentic identities at work.More than 8 out of 10 employees who par

161、ticipated in the survey indicated that they were engaged at work.Our Culture Formula Our culture formula brings the IBM work experience to life.Our purpose articulates why we exist and the role we play in society and industry,while our three fundamental values serve as the principles that govern our

162、 culture and brand.Our Growth Behaviors guide how we show up for each other and for our clients and partners.IBM Culture=Purpose-To be the catalyst that makes the world work better+Values-Dedication to every clients success-Innovation that matters-for our company and for the world-Trust and personal

163、 responsibility in all relationships+Behaviors-Growth Minded-Trusted-Team Focused-Outcome Focused-Resourceful-Courageous Supporting OurEmployees IBMer Career and Development Twice annually,IBMers complete performance reflections which encourage them to celebrate their accomplishments and plan for fo

164、cus areas going forward.They are evaluated against two dimensions:business outcomes and skills.Managers and employees engage in this process together.IBMer Learning IBM invests in its employees professional development with a range of advanced tools and resources that empower IBMers to direct their

165、own career paths and build the skills required to pursue their goals.Our next generation learning strategy deeply centers on skills growth.We have refreshed our learning program to better align with this strategy.Our enterprise-wide shift emphasizes learning and experiences to build skills and exper

166、tise critical to job roles and internal mobility.With our refreshed programs,IBMers will accelerate skills growth and gain more relevant skills in a more efficient and personalized manner,allowing for deeper learning in less time.For additional employee learning data see ESG Data Summary on page 63.

167、Our current learning resources:Your Learning at IBM Generates personalized learning recommendations and resources for IBMers using IBM 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 wit

168、hin IBM,it connects IBMers to certification programs,as well as coaching and mentoring to supplement theirdevelopment.85 Average Learning Hours Per Regular,FullTime Employee Contents Introduction Governance Social Environment Appendix IBM 2023 ESG Report 24 Leadership Development To ensure the conti

169、nued growth of IBM and the achievement of our strategic goals,last year,we introduced the IBM Leadership Behaviors which define the characteristics and capabilities required of IBM executives.These behaviors are built upon the IBM Growth Behaviors and articulate our expectations for how IBM executiv

170、es show up for our clients,partners,and employees.The behaviors are the anchor for the framework we use to assess and develop executives at the senior most levels of our company and are embedded into a set of Signature Executive Learning Experiences that act as the starting point for each phase of t

171、he IBM executive leadership journey.We believe these Behaviors are a market differentiator and are key to selecting and developing the executive talent required to achieve long-term success.IBM Leadership Behaviors for Executives Inspire Followership-Role model for IBMs culture-Exude the confidence

172、to achieve what might seem impossible-Foster an environment of caring,belonging and inclusivity Activate the Enterprise-Drive ambition for the IBM Corporation-Maximize productivity by leveraging the full power of IBM-Create positive energy from friction Accelerate Strategy-Make big bets without fear

173、 of failure-Infuse speed and agility-Make appropriate trade-offs to maximize outcomes Growth Behaviors Growth Minded Trusted Team Focused Outcome Focused Resourceful Courageous Contents Introduction Governance Social Environment Appendix IBM 2023 ESG Report 25 Health,Safety,and Well-being IBM has a

174、long-standing commitment to the health,safety,and well-being 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(HSMS).Established in 1999,ou

175、r 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.For worker-related injuries and ill health data see ESG Data Summary on page 63.IBMs

176、 Health and Safety Management System supports IBM operations globally and has been externally certified since 2019 to comply with the ISO 45001:2018 occupational health and safety standard.Well-being Programs We believe our employees perform their best at work,at home and in the communities where th

177、ey live and work when their well-being is supported.Our well-being programs,which include physical,mental,and financial health,are shaped by risk assessments,frequent surveys and employee feedback sessions.In 2023,our well-being programs focused on cardiovascular,musculoskeletal and mental health.Ou

178、r well-being programs vary by country and are based on the prevailing health and safety needs of the applicable end-users.Mental Health At IBM,mental health has always been and will continue to be a priority.All employees worldwide have access to:-Employee assistance programs and supplemental resour

179、ces that provide confidential,24/7 critical mental health support;-Our Mental Health Ally Badge program,designed to help employees become mental health allies with an online training that covers basic information about mental health,how to recognize and address stigma,and ways to connect peers in ne

180、ed of support with an appropriate service or resource;and-A resilience-building tool to help equip them 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.Benefits IBM is committed to helping our employees ac

181、hieve balance while fostering success by providing them with an array of benefits,such as paid leave and programs to support health and well-being.We offer a comprehensive benefits program Appendix Contents Introduction Governance Social Environment designed to support IBM employees and their famili

182、es across multiple dimensions of health physical,mental,social and financial.Benefits vary from country to country.IBM 2023 ESG Report 26 Diversity andInclusion At IBM,we foster a culture of conscious inclusion and active allyship,where every IBMer can make a positive impact on society while bringin

183、g their authentic selves to work.We aspire to create a sense of belonging for all by building a more diverse workforce,cultivating a flexible work environment and advocating for equity,both inside and outside of IBM.Contents Introduction Governance Social Environment Appendix IBM 2023 ESG Report 27

184、Our four strategic priorities measure our progress through actions and outcomes Employee Experience We are champions of inclusion,enabling diverse communities of IBMers to thrive andgrow.Accountability We harness data transparency to enable accountability,action and outcomes for increased diversity

185、representation and inclusion at every level of our company.Advocacy We work to drive systemic change that creates opportunity for diversecommunities.Allyship We provide training and support to help every IBMer be an upstander through inclusive behaviors.Employee Experience Our eight official communi

186、ties include Women,LGBTQ+,People with Diverse Abilities,Black,Hispanic,Native American,Pan-Asian and Veteran.We set strategy for each of our communities annually through Community Leadership Councils which are supported by our most senior IBM leaders and amplified through our Business Resource Group

187、s.We believe it is important to create a work environment where employees feel supported.IBMs Inclusive Workplace Design initiative continued in 2023 which included all-gender restrooms,reflection and prayer rooms,lactation rooms,increased aisle widths and turning radius and tonal contrast materials

188、 for the visually impaired.These design elements will be included in all new workplace projects going forward.The guidelines also include baseline Inclusive Design elements which are required at IBM legacy locations.Business Resource Groups Business Resource Groups are volunteer,employee-led groups

189、formed aroundacommon interest,bond,orbackground.-Over 200 Business Resource Groups-Employees in more than 50 countries participate-In 2023,IBM established 25 new Business Resource Groups Appendix IBM 2023 ESG Report Contents Introduction Governance Social Environment 28 Advocacy We demonstrate advoc

190、acy through our effort to drive systemic change that creates opportunity for diverse communities.For information on our philanthropic efforts to support inclusivity see Community Development on page 35 and for information on our work with diverse suppliers see Supplier Diversity on page 42.Policy Ad

191、vocacy In 2023,we supported several bills brought forth to the U.S.Congress and statelegislatures in support of our diverse communities:-The Equality Act,to extend civil rights protections to the LGBTQ+community-The Dream Act and the American Dream and Promise Act,to provide protections and certaint

192、y for Deferred Action for Childhood Arrivals(DACA)recipients,or DREAMers-State policing reform proposals Additionally,we urged the Czech Republics Prime Minister to support same-sex marriage and joined a business coalitionadvocating for LGBTQ+inclusion inSlovakia.Skills-First Talent Strategies For n

193、early a decade,IBM has developed our organizations talent model to put skills first.We emphasize skills-first hiring,which means we prioritize the right mix of in-demand skills over specific degrees when looking for talent to work in technologys fastest-growing areas,like AI.This policy and what we

194、call our new-collar programs provide an entry point into IBM for people with relevant skills,but without advanced degrees,therefore expanding ways for people to enter the workforce.Our new-collar programs,like apprenticeships and returnships,can help close the opportunity gap,as well as narrow the s

195、kills gap in IT.To promote this approach,in 2022 IBM committed to investing$250 million in apprenticeship and new-collar programs by 2025,towards which we have invested$100.3 million.Our continued investment in apprenticeships and new-collar programs globally helps to ensure the next decade in tech

196、is more inclusive.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 founded and have chaired for four years the Consumer Technology Associations Apprenticeship Coalition that helps companies launch apprenticeship programs

197、in the U.S.Additionally,we are founding members of the OneTen Coalition and the New York Jobs CEO Council,as well as a chair of the Business Roundtables Multiple Pathways Initiative.These efforts work to improve opportunities by scaling new-collar programs and encouraging more companies to adopt ski

198、lls-first talent strategies.IBM 2023 ESG Report 29 Contents Introduction Governance Social Environment Appendix IBM U.S.Apprenticeship Program 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.Lau

199、nched in 2017,the program began with software engineering and has expanded to 35 job roles,including data science,cybersecurity,and design.We have hired nearly 1,000 apprentices through our U.S.program,with more than 90%of past program graduates becoming full-time IBMers.IBM Tech Re-Entry Program Ou

200、r re-entry program serves people looking to rejoin the workforce after a career break.This paid“returnship”provides a path back to full-time employment and helps individuals modernize their skills with learning,plus mentorship from IBM experts.Available in 20 countries,this initiative is also provid

201、ing opportunities to people whose careers were disrupted by the COVID-19 pandemic.IBM 2023 ESG Report 30 Contents Introduction Governance Social Environment Appendix Allyship IBM provides voluntary training and support to help every IBMer be an upstander through inclusive behaviors.In addition,we re

202、quire all 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 annual certification process.We regularly refresh education for our employees to help foster an inclusi

203、ve 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 annually.Im In Allyship Campaign In 2023,we launched a yearlong allyship campaign called Im In,which included a series of strategic initiatives focu

204、sed on mentorship,sponsorship,career development,and building empathy through storytelling.Our programming enables active allyship,supports our commitment to attracting and retaining talent,reinforces our pledge to inclusion and creates a sense of belonging.Allyship Circles These events feature imme

205、rsive sessions that explore allyship and actionable strategies for immediate impact.Dynamic breakout sessions provide a safe space for meaningful conversations and knowledge sharing,fostering personal growth.The events conclude with actionable steps for becoming better allies and contributing positi

206、vely to a more inclusive workplace.Executive Speed Mentoring The Executive Speed Mentoring program seamlessly combines career road mapping and executive mentorship in a collaborative setting.Through its four-part structure,employees showcase accomplishments,learn practical career progression strateg

207、ies and gain insights from executives.The integration of executive mentoring adds valuable support,guidance,and perspectives to enhance career growth and development.Be Equal Podcast This thought-provoking and empowering podcast series delves into the multifaceted world of Diversity and Inclusion.Ho

208、sted by passionate IBMers and available on all major streaming platforms,this series provides a platform for a wide range of voices and global perspectives that encourages dialogue,learning,and action to create a more inclusive workplace.Boots2Blue An IBM veteran hiring initiative representing the j

209、ourney a veteran makes from wearing boots while in military service to transitioning to a civilian career at IBM.Travelers Requiring Special Assistance Helpdesk A new concierge service we created in collaboration with American Express Global Business Travel to support our employees who have special

210、needs when traveling.A helpdesk of trained counselors provides inclusive travel assistance,including airport,train,hotel,and ground transportation booking,and coordinates accommodation support throughout the travel experience.Accountability IBM harnesses data transparency to enable accountability,ac

211、tion 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 gender or raceis not optional.It is a mandate that aligns with our values.IBM has a longstanding practice of

212、 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 equity analysis in the U.S.since the 1970s.To support our commitment to pay equity,each year we follow a co

213、nsistent methodology to identify and address any pay equity gaps across genders globally and across races and ethnicities in the U.S.In 2023,all countries where IBM has employees were included in our pay equity analysis.The pay equity data represents total compensation,including base,bonus and equit

214、y.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 attracting and retaining dive

215、rse talent in our workforce that represents our clients and the world,we include a diversity modifier as part of our executive compensation plan.It measures improvement in executive representation for women globally and underrepresented minority(URM)groups(specifically,Black and Hispanic)in the U.S.

216、Our goal remains to improve and close the gap in representation.We believe a diverse workforce drives creativity and innovation in our products and services and as a result increases shareholder value.In 2023,of our global promotions,40.8%were women and,of our U.S.promotions,9.4%were Black employees

217、 and 9.2%were Hispanic employees.Contents Introduction Governance Social Environment Appendix IBM 2023 ESG Report 31 Opportunities for Self-Identification IBM believes that providing opportunities for self-disclosure allows employees to voluntarily share their uniqueness.By self-identifying,we show

218、awareness and may leverage differences by creating solutions and network opportunities for a successful company.Of employees who self-identified in 2023,approximately:-10%self-identified as LGBTQ+-5%self-identified as Veterans-5%self-identified as People with Diverse Abilities The privacy of our emp

219、loyees is a chief concern.We comply with all applicable legal requirements when handling employee information.Self-identification information is not visible to managers or team members and is held in strictest confidence.Representation and Hiring Trends Overall Representation Women(Global)21 22 23 3

220、6.7%*37.2%*37.4%Black(U.S.)21 22 23 7.4%7.7%7.5%Hispanic(U.S.)21 22 23 6.6%7.0%7.0%Native American(U.S.)21 22 23 0.3%*0.3%*0.3%Native Hawaiian/Pacific Islander(U.S.)21 22 23 0.2%0.2%0.2%Pan-Asian(U.S.)21 22 23 19.2%19.7%20.5%Multi-race(U.S.)21 22 23 0.9%0.9%0.9%New Hires Women(Global)21 22 23 40.1%3

221、9.7%*40.5%Black(U.S.)21 22 23 13.8%13.5%12.4%Hispanic(U.S.)21 22 23 9.6%*9.8%8.9%Native American(U.S.)21 22 23 0.3%*0.3%*0.5%Native Hawaiian/Pacific Islander(U.S.)21 22 23 0.2%0.3%0.2%Pan-Asian(U.S.)21 22 23 23.5%24.0%27.6%Multi-race(U.S.)21 22 230.7%0.7%0.5%Management Representation Women(Global)21

222、 22 23 31.0%*31.1%*31.4%Black(U.S.)21 22 23 5.6%*5.8%*5.6%Hispanic(U.S.)21 22 23 5.6%*5.9%5.0%*Native American(U.S.)21 22 23 0.3%*0.3%*0.4%Native Hawaiian/Pacific Islander(U.S.)21 22 23 0.1%0.1%0.1%Pan-Asian(U.S.)21 22 2317.1%*18.4%*19.6%Multi-race(U.S.)21 22 230.8%0.8%*0.8%New Hires Women(Global)21

223、 22 2334.1%*30.4%*33.4%Black(U.S.)21 22 23 8.8%*5.5%10.0%*Hispanic(U.S.)21 22 238.1%*4.0%*10.2%Native American(U.S.)21 22 23 0.0%*0.0%0.5%*Native Hawaiian/Pacific Islander(U.S.)21 22 23 0.3%0.4%0.0%Pan-Asian(U.S.)21 22 2319.4%*22.9%*27.3%Multi-race(U.S.)21 22 230.3%*0.0%*0.0%Management includes all

224、executives and people managers.IBM hired over 30,000 employees in 2023.Data excludes students.*For 2023,IBM revised the definition of employee categories to improve consistency and prior results have been restated to align with these definitions.IBM has also included an additional racial category fo

225、r Native Hawaiian/Pacific Islander with prior yearsresults.Social Environment Appendix Contents Introduction Governance IBM 2023 ESG Report 32 Representation and Hiring Trends Technical Representation Women(Global)21 22 23 30.1%30.6%*31.1%Black(U.S.)21 22 236.6%7.1%6.8%Hispanic(U.S.)21 22 236.7%7.0%

226、6.8%Native American(U.S.)21 22 23 0.2%*0.3%*0.3%Native Hawaiian/Pacific Islander(U.S.)21 22 23 0.2%0.2%0.2%Pan-Asian(U.S.)21 22 23 24.5%24.7%*23.6%Multi-race(U.S.)21 22 231.0%0.9%*0.9%New Hires Women(Global)21 22 23 34.0%32.5%32.8%Black(U.S.)21 22 23 11.6%11.5%11.7%Hispanic(U.S.)21 22 23 8.9%8.6%*6.

227、7%Native American(U.S.)21 22 23 0.2%*0.2%*0.8%Native Hawaiian/Pacific Islander(U.S.)21 22 23 0.2%0.3%0.2%Pan-Asian(U.S.)21 22 23 29.9%31.9%34.2%Multi-race(U.S.)21 22 23 0.9%*0.9%*0.7%Executive Representation Women(Global)21 22 23 28.8%29.1%30.2%Black(U.S.)21 22 23 6.6%6.4%6.1%*Hispanic(U.S.)21 22 23

228、 5.9%6.4%5.5%Native American(U.S.)21 22 23 0.3%*0.5%0.5%Native Hawaiian/Pacific Islander(U.S.)21 22 23 0.1%0.1%0.1%Pan-Asian(U.S.)21 22 23 15.7%16.6%*17.6%Multi-race(U.S.)21 22 23 0.5%0.6%0.7%New Hires Women(Global)21 22 23 33.2%*30.9%*36.4%Black(U.S.)21 22 23 10.4%7.1%*6.8%Hispanic(U.S.)21 22 23 6.

229、4%*13.6%7.1%Native American(U.S.)21 22 23 0.0%0.0%0.0%Native Hawaiian/Pacific Islander(U.S.)21 22 230.4%0.0%0.0%Pan-Asian(U.S.)21 22 23 20.0%20.5%*28.4%Multi-race(U.S.)21 22 230.0%1.9%*0.0%Executive includes Director level and above.As noted in the Proxy,excluding Red Hat,executive representation of

230、 women globally,as well as Black and Hispanic executives in the U.S.,changed by+1.1points,-0.2 points and+0.6 points,respectively in 2023.Data excludes students.*For 2023,IBM revised the definition of employee categories to improve consistency and prior results have been restated to align with these

231、 definitions.IBM has also included an additional racial category for Native Hawaiian/Pacific Islander with prior yearsresults.Social Environment Appendix Contents Introduction Governance IBM 2023 ESG Report 33 The data below is from IBM and Red Hats unofficial submission of U.S.EEO-1 data as of Dece

232、mber 31,2023.IBM EEO-1 Female Male American Indian or Alaska Native Black or African American Native Hawaiian or Other Pacific Islander White Asian Hispanic or Latino Two or More Races American Indian or Alaska Native Black or African American Native Hawaiian or Other Pacific Islander White Asian Hi

233、spanic or Latino Two or More Races Total Executive/Senior Officials and Managers 6 67 470 123 56 16 4 90 3 912 306 99 20 2,172 First/Mid-level Officials and Managers 12 199 3 1,446 401 143 48 10 182 8 2,862 1,072 248 97 6,731 Professionals 25 1,088 18 5,135 2,644 779 131 51 1,378 43 12,009 4,969 1,5

234、03 258 30,031 Technicians 1 36 130 23 30 1 7 171 5 930 112 186 8 1,640 Sales Workers 11 201 5 1,045 304 164 17 28 361 6 3,212 724 370 37 6,485 Administrative Support Workers 81 295 27 35 3 20 1 115 6 17 2 602 Craft Workers Laborers and Helpers Service Workers Operatives Totals 55 1,672 26 8,521 3,52

235、2 1,207 216 100 2,202 66 20,040 7,189 2,423 422 47,661 Red Hat EEO-1 Female Male American Indian or Alaska Native Black or African American Native Hawaiian or Other Pacific Islander White Asian Hispanic or Latino Two or More Races American Indian or Alaska Native Black or African American Native Haw

236、aiian or Other Pacific Islander White Asian Hispanic or Latino Two or More Races Total Executive/Senior Officials and Managers 15 1 1 51 8 2 78 First/Mid-level Officials and Managers 2 35 365 47 21 5 3 27 675 93 39 13 1,325 Professionals 1 132 2 957 267 84 31 10 182 4 2,553 500 227 98 5,048 Technici

237、ans Sales Workers 9 183 13 12 7 22 3 543 57 31 19 899 Administrative Support Workers 11 37 5 4 1 5 2 2 1 68 Craft Workers Laborers and Helpers Service Workers Operatives Totals 3 187 2 1,557 333 122 43 13 232 7 3,827 660 301 131 7,418 Data includes all U.S.employees on IBM and Red Hats payroll,inclu

238、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

239、gn payrolls,or people on long-term disability.Contents Introduction Governance Social Environment Appendix IBM 2023 ESG Report 34 Community Development Corporate social responsibility(CSR)has been a hallmark of IBMs culture for over 100 years.Together,we have a shared commitment to creating a better

240、,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 impact.More than 8 out of 10 employees believe IBM makes a positive impact in the community.Contents Int

241、roduction Governance Social Environment Appendix IBM 2023 ESG Report 35 IBMs social impact programs aim to address complex societal challenges by utilizing our technologies and our greatest strength,our employees.Our priority areas are:Education&Skills We are investing in the future of work with a h

242、olistic,end-to-end ecosystem approach that fosters access to education and training,while creating a more diverse pipeline of applicants.-We are committed to skilling 30 million individuals by 2030.-Since 2021,over 11.5 million learners have engaged with free IBM training content.-In 2023,we announc

243、ed that we will train two million learners in AI by the end of 2026,with a focus on historically underrepresented communities in the technology industry.-In addition,we are collaborating with 20 historically Black colleges and universities(HBCUs)to establish IBM Cybersecurity Leadership Centers.Sust

244、ainability As a technology company,IBM can play 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 IBM Sustainability Accelerator to organizations helping populations v

245、ulnerable to environmental threats.In 2024,we announced up to an additional$45 million investment over the next five years.IBM Giving and Volunteering We connect employees with the resources they need to make an impact in communities around the world.-IBM is progressing towards our goal of 4 million

246、 volunteer hours by 2025 with over 974K volunteer hours recorded thus far.Education&Skills We believe the talent gap is one of the biggest challenges facing businesses today and are taking bold action to help close it through our social impact education programs.In 2021,we committed to skill 30 mill

247、ion people by 2030.This will help democratize opportunity,fill the growing skills gap,and give new generations of workers the tools they need to build a better future for themselves and society.Since then,over 11.5 million learners have engaged with free IBM training content through our combined edu

248、cation initiatives.In 2023,as part of this goal,we committed to train 2 million learners in AI by the end of 2026.To achieve this,we are expanding our collaborations with universities and partners to deliver AI training to adult learners,and are launching new generative AI coursework through IBM Ski

249、llsBuild.Through our social impact education programs,IBM is meeting the needs of different learners while providing education and digital credentials.Our cornerstone programs are:IBM SkillsBuild IBM SkillsBuild is a free education program that provides valuable skills and career opportunities to tr

250、aditionally underrepresented communities in technology.It includes an online platform that is complemented by customized practical learning experiences delivered in collaboration with a global network of partners.The program serves learners around the world and offers over 1,000 courses in over 20 d

251、ifferent languages on AI,cybersecurity,data analysis,cloud computing and many other technical disciplines in addition to workplace skills.Last year,IBM SkillsBuild added a new selection of generative AI courses as part of our new AI training commitment and launched a new sustainability curriculum to

252、 help equip the next generation of leaders with skills for the green economy through free training that connects cutting edge technologies to ecology and climate change.With AI-powered recommendations available for each learner,this interdisciplinary coursework connects topics such as ecology and bi

253、odiversity,with technology training in AI and data analytics.IBMs STEM for Girls initiative,designed to foster a robust STEM ecosystem for the upcoming generation of women in India,was more deeply integrated into IBM SkillsBuild in 2023.This integration aims to facilitate deeper engagement by progra

254、m participants with the courses offered on the platform.HBCU Cybersecurity Leadership Centers IBM has collaborated with over 20 HBCUs to create IBM Cybersecurity Leadership Centers that are advancing STEM-based opportunities for students.Through this collaboration,faculty and students at participati

255、ng schools have access to coursework,lectures,immersive training experiences,certifications,IBM Cloud-hosted software,and professional development resources,all at no cost tothem.P-TECH In 2011,IBM co-created P-TECH as an innovative high school model incorporating post-secondary pathways and workpla

256、ce experiences aligned to career readiness.Today,it has evolved into a successful,global,open model with an ecosystem of education partners.IBM supports the model including mentoring,career exploration and access to IBMSkillsBuild.Since 2021,over 11.5M learners have engaged with free IBM training co

257、ntent.Contents Introduction Governance Social Environment Appendix IBM 2023 ESG Report 36 Sustainability We believe the power of science,technology and innovation can help tackle environmental issues while serving the communities exposed to environmental hazards.By uniting experts and technology wit

258、h the purpose of improving the lives of populations most affected by environmental threats,we have the potential to make a lasting,scalable impact.IBM Sustainability Accelerator The IBM Sustainability Accelerator is a pro bono social impact program that applies IBM technologies,such as hybrid cloud

259、and AI,and expertise to enhance and scale nonprofit and government organization solutions,helping populations especially vulnerable to environmental threats.Each year,we select five organizations to participate in cohorts centered around different sustainability topics.Since its launch in 2021,the p

260、rogram has made significant progress.Last year,the program joined the U.S.governments PREPARE Call to Action and VACS Champions initiative,the UN Water Action Agenda,the UN Climate Technology Centre and Network,and formed a UN Energy Compact.At the beginning of 2024,building on top of our goal to pr

261、ovide$30 million in cash,technology,and services by the end of 2025 towards this program,we announced that we plan to increase this goal by up to an additional$45 million over the next five years.Since 2021,we have invested nearly$11.7 million towards the IBM Sustainability Accelerator.The IBM Susta

262、inability Accelerator currently has three active cohorts and,in 2024,announced our RFP for the fourth cohort focused on resilient cities:-Sustainable Agriculture:In support of the UN SDG 2 to end hunger,achieve food security and improved nutrition and promote sustainable agriculture.Focused on helpi

263、ng smallholder farmers make agriculture more sustainable to increase their productivity and income,consumer awareness and the development of more sustainable markets.Three out of the five projects from the cohort concluded in 2023,with approximately 40,000 direct beneficiaries.The rest of the projec

264、ts are currently undergoing technical implementation.-Clean Energy:In support of the UN SDG 7 to ensure access to affordable,reliable,sustainable and modern energy for all.Focused on addressing clean energy issues such as electricity access,energy usage,energy transition and renewables strategies fo

265、r communities.The cohort started testing and deploying solutions in communities around the world.-Water Management:In support of the UN SDG 6 to ensure availability and sustainable management of water and sanitation for all.Focused on scaling technology solutions that address water issues by support

266、ing availability and sustainable management of water and sanitation for vulnerable communities.In the second half of 2023,the cohort kicked off and entered the ideation phase with IBM Garage.-Resilient Cities:In support of the UN SDG 11 to make cities inclusive,safe,resilient and sustainable.This ne

267、w cohort,targeted for launch in 4Q2024,will aim to find ways to foster urban resiliency in the long-term.Contents Introduction Governance Social Environment Appendix IBM 2023 ESG Report 37 IBM Giving and Volunteering Volunteerism and giving are at the epicenter of our work and are foundational to ou

268、r commitment to advancing diversity,equity and inclusion.IBM Volunteers IBM Volunteers leverage the collective power of people and resources to ensure meaningful impact worldwide.The program supports active and retired IBMers who donate their time and talents to academia,grassroots initiatives,and o

269、rganizations helping to build our communities.IBM routinely brings our workforce together through global campaigns that feature both in-person and virtual opportunities for meaningful community engagement that addresses critical mission areas.In 2023,more than 27,000 volunteers participated in IBM v

270、olunteering,collectively logging over 543,000 volunteer hours.Volunteering Hours 2022 2023 Worldwide retiree and employee volunteer hours 431,000 543,000 Restatement from prior year to reflect calculation correction.IBMers are committed to engaging with purpose-driven initiatives through our signatu

271、re volunteer programs that align with both the enterprise and our CSR priority areas of education,skills and sustainability.Our signature volunteer programs include:-IBM SkillsBuild&P-TECH:IBM volunteers champion education equity and workforce inclusion by sharing their career expertise with learner

272、s and job seekers,creating pathways for all individuals to participate in the future of work.-IBM Service Corps:Provides IBMers with opportunities to use their professional skills to help communities tackle complex challenges in education,humanitarian efforts,cybersecurity,and economic development.S

273、ince 2008,employees have participated in 478 projects in 56 countries.-IBM Sustainability Accelerator:IBM volunteers deliver innovative technology solutions to nonprofit organizations,aiding populations especially vulnerable to environmental threats and producing outcomes that will lead to a more su

274、stainable world.IBM Giving Worldwide IBM has a comprehensive giving strategy that allows us to provide our expertise,technology,and cash to support our CSR mission and priorities in education and skills,sustainability and other areas.Our giving strategy is global and focuses on areas where IBM seeks

275、 to make a significant impact on those with the greatest need.For the breakdown of our total contributions worldwide see ESG Data Summary on page 66.IBM Giving$386.9M 2023 Total contributions worldwide Diversity and inclusion are foundational principles of IBMs culture.Deeply embedded into our volun

276、teer programs,these values help us create a more equitable future for everyone.Throughout 2023,IBM offered volunteer opportunities aligned with our eight Diversity&Inclusion Communities that fostered an environment of conscious inclusivity where differences are embraced and IBMers could make a posit

277、ive impact on society.Contents Introduction Governance Social Environment Appendix IBM 2023 ESG Report 38 IBM is deeply committed to supporting organizations and communities in need.In 2023,the Disaster Relief Program offered IBMers the opportunity to support communities around the world through cha

278、ritable giving.Through this program,IBM also establishes charitable giving campaigns where we match employee donations 1:1.Supply Chain Social Responsibility In 2023,we worked with over 10,000 suppliers of hardware,software,and services,and continued to promote social and environmental responsibilit

279、y among our global supply network and across ourindustry.Since 2010,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 mana

280、gement systems,measure performance,set goals,disclose results,and 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.For information on our promotion of environmen

281、tal responsibility among our global supply chain see Supply Chain Environmental Responsibility on page 57.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 et

282、hical responsibility of their companies,and 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 an

283、d management systems.The RBA code is the foundation 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 w

284、ith IBM developed materials.We regularly update 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

285、 and top 50 Services and General Procurement suppliers for 2023 are listed in Top Suppliers on page 72.From this group,81 published ESG reports with 68 in reference to GRI standards(as doesIBM).Contents Introduction Governance Social Environment Appendix IBM 2023 ESG Report 39 Supplier Audits Annual

286、ly,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 recommendatio

287、ns to reach code conformance.For suppliers with corrective action plans,we require them to bere-audited to measure their progress towards fullconformance.In 2023,IBM suppliers participated in 82 RBA full audits and 48 re-audits in 22 countries where heightened risks for social and environmental resp

288、onsibility are known to exist.The 82 full audits revealed a total of 664 nonconformances against the five provisional sections of the RBA Code.2023 Distribution of Nonconformances by Section of the RBA Code of Conduct 34%Health and Safety 14%Management System 35%Labor 8%Environmental 82 Full Audits

289、9%Ethics In 2023,the RBA audit protocol was changed to feature a distributed assessment of Management Systems within the other four provisions of the Code:Labor,Health and Safety,Environment,and Ethics.This change helps to ensure that inadequacies are addressed in subsequent corrective action plans

290、and vetted during re-audits.We largely attribute the net increase in the number of supplier nonconformances from the prior year to the change in the audit protocol.In 2023,IBM collaborated with 48 suppliers to plan and execute RBA re-audits to vet corrective action plans associated with full audits

291、performed during 2021-2023.These re-audits yielded an 85%improvement in conformance from the findings in the related full audits-a 14 point improvement over 2022.This was the result of heightened collaboration and evidence validation with our global suppliers in their corrective action plans to guid

292、e and assure improvements were being made according to plan.Inthis same group,44%of suppliers attained full conformance to the RBA Code after one cycle of full audit,correction action plan and re-audit.For continuous improvement,we remain engaged with suppliers that show residual nonconformance and

293、require a second corrective action plan to be developed for furtherassessment.As part of our RBA Code conformance management system,we review full and re-audit results monthly with IBMs procurement teams and vice presidents,and quarterly with our Chief Procurement Officer.From this dialogue,we make

294、alterations to our supplier education programs,assistance and future sourcing patterns.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 for force

295、d 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 online

296、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 three reports in response to Canadian,Australian and United Kingdom legislation with details on our activi

297、ties to combat modern slavery and forced labor.These reports are updated each June and are available on our IBM Impact website.For more information on our RBA full audits and re-audits,see ESG Data Summary on page 67.IBM 2023 ESG Report Contents Introduction Governance Social Environment Appendix 40

298、 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,tungsten and gold)used in our products do not contribute directly or indirectly to armed groups in the Democratic Republic of th

299、e Congo and adjoining countries.We deploy a multifaceted approach that includes robust policies and practices,as well as external collaboration,to reach theseobjectives.Our responsible minerals sourcing policy is aligned with the framework of the Organisation for Economic Co-Operation and Developmen

300、t(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 pertaining to downstream companies.IBM has expanded its efforts to include ethically sourced cobalt and mica,following the approac

301、h 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.We require in-scope suppliers to source 3TG minerals from ethical smelters or refiners(SORs)that are conformant or act

302、ive in a recognized third-party validation scheme,or from recycled scrap sources.IBM pairs skilled members of our responsible minerals team with first-tier(and upstream)suppliers to work on training,best practice sharing,and overcoming the challenges of a dynamic market environment where SOR conform

303、ant 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 sustain progress.As a complementary activity,IBMs Responsible Minerals team maintains communications with our research community to ke

304、ep 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 Almaden Research Center has invented a battery technology free of nickel and cobalt,which couldpotentially help eliminate the need fo

305、r critical metals in battery production and transform the long-term sustainability of many elements of our energyinfrastructure.Our annual Conflict Minerals Report(CMR)is anticipated to be published in May 2024 and will include information on our in-scope suppliers use of conformant 3TG SORs in 2023

306、.Alibrary 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 the IBM Responsible Mineralswebsite.Our working relationships span multiple layers of the supply chain,in which

307、manyinterrelationships exist,in order to sustain progress.Contents Introduction Governance Social Environment Appendix IBM 2023 ESG Report 41 Global Supplier Diversity We recognize that a diverse supplier base is integral to our companys profitability and strategic objectives solidifying the connect

308、ion between customer satisfaction and success in the marketplace.Building and maintaining 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 deliv

309、er innovation,quality products and world-class service to a growing globalmarketplace.Our global supplier diversity program includes suppliers that are majority owned,operated,and controlled by people from a racial or ethnic minority(as defined in each applicable country or region),women,military ve

310、terans,LGBTQ+individuals,or people with diverse abilities.Learn more about our program on the IBM Supplier Diversitywebsite.IBMs Global Supplier Diversity Program,in existence for over 55 years,operates in all countries where we do business,and diverse suppliers provide products and services for eac

311、h 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 and is collected as second-tier spend.First-Tier Supplier Diversity Spend($B)2023 U.S.$0.9 Non-U.S.$0.3 Total$1.2 In 2023,our second-tie

312、r supplier diversity spend was approximately$0.5B.In 2020,IBM set a goal of dedicating 15%of our first-tier supplier diversity spending to Black-owned businesses by 2025.In 2023,approximately 8.5%of our first-tier supplier diversity spend was with Black-owned suppliers.Contents Introduction Governan

313、ce Social Environment Appendix IBM 2023 ESG Report 42 Contents Introduction Governance Social Environment Appendix IBM 2023 ESG Report Environmental Impact With a 50-plus year commitment to environmental responsibility in all of its business activities and a 34-year history of annual public environm

314、ental reporting,IBM continues to take deliberate actions to drive real results.Global Environmental Management System IBMs corporate environmental policy,first formalized in 1971,provides the strategic framework for our global environmental management system(EMS).We have maintained an EMS for decade

315、s and continually update it to reflect our current intersections with environmental matters.Theglobal scope of our EMS covers hardware product design and development,manufacturing,data centers,real estate operations,procurement,logistics,and asset recovery services.Setting and executing against goal

316、s to drive continual improvement is an integral part of our EMS.We currently have 21 environmental sustainability goals that address energy and climate change,conservation and biodiversity,pollution prevention and waste management,supply chain and value chain,and EMS.We have continuously maintained

317、a single global registration to the ISO 14001 EMS standard since 1997 and to the ISO 50001 energy management systems standard since 2012.In addition,our GHG emissions quantification process is certified to the ISO 14064-1:2018 standard and our GHG emissions inventory and disclosures are verified wit

318、h limited assurance by an independent third-party using the ISO 14064-3:2019 standard.More information about IBMs management system certifications and our environmental programs can be found on the IBM Environment website.Contents Introduction Governance Social Environment Appendix IBM 2023 ESG Repo

319、rt 44 Stakeholder Engagement We proactively engage and collaborate on environmental matters with stakeholders from a cross-section of nongovernmental organizations(NGOs),government agencies,businesses,industry associations,investors,academia,communities,and employees.Some examples are:European Green

320、 Digital Coalition(EGDC):The EGDC is a group of companies committed to supporting the EUs“green and digital transformation.”IBMs Flex Platform solution,which provides balancing capacity for the grid,was selected by EGDC to demonstrate“calculator”development across six economic sectors(energy/power,t

321、ransport,construction/buildings,manufacturing,agriculture and smart cities)to help digital technologies users assess the net environmental impact(positive or negative)of selected solutions with methodologies jointly developed by member companies,together with NGOs and relevant expert organizations.T

322、he IBM Flex Platform solution case study calculator was finalized in June 2023 and presented at the Digital with Purpose Global Summit in September 2023.National Aeronautics and Space Administration(NASA):In2023,IBM and NASA expanded our collaboration on AI foundation models to encompass geospatial

323、analytics and large language models.Together,we announced and open-sourced the first geospatial foundation model to monitor our changing planet using NASA earth observation data.Downstream applications include detecting natural hazards and tracking changes to forests and agricultural practices.This

324、model was showcased at COP28 and highlighted reforestation efforts with the Government of Kenya.We also co-developed and open-sourced a new large language model trained on scientific literature to make this knowledge more accessible and announced development of a new AI foundation model for weather

325、and climate.Downstream applications include downscaling climate projections and fine-tuning forecasts to support renewable energy forecasting.Technip Energies(TEN):IBM Research invented the VolCat Technology as a more efficient,and sustainable way to recycle polyethylene terephthalate(PET)used in te

326、xtiles and packaging and,in 2021,IBM formed the VolCat Technology Joint Venture with TEN and Under Armour to develop the VolCat Technology into a process robust enough to regenerate dyed PET packaging,polyester textile and cotton-polyester blends.In 2023,building on our partnership,TEN announced the

327、 launch of Reju,a polyester regeneration company that will take the VolCat Technology to industrial scale.The Green Grid(TGG):TGG focuses on creating tools,providing technical expertise and advocating for the optimization of data center energy and resource efficiency.As a member of TGG since its inc

328、eption in 2007,IBMers actively participate on the TGG Executive Leadership Council,the Server and Storage Energy Standing Working Group and hold chair positions on both the Data Center Energy Efficiency Standards Standing Working Group and the Data Center IT Equipment Energy Efficiency Metric Activi

329、ty Working Group.In 2023,TGG provided its technical expertise and advocacy on proposed laws and regulations in the U.S.,the EU,China,and India,and on new and updated standards developed by theISO.U.S.Department of Energy(DOE):IBM joined the U.S.DOEs Energy Efficiency Scaling for 2 Decades program wh

330、ich aims to increase the energy efficiency of computing by 1,000 times over the next two decades.U.S.National Science Foundation(NSF)Convergence Accelerator:IBM Research has partnered with the University of Pittsburgh,Cornell University,NuMat Technologies,ChemForward and Digital Science to accelerat

331、e the discovery of alternatives,replacements,and remediation solutions for per-and polyfluoroalkyl substances(PFAS),a growing class of environmental pollutants commonly referred to as forever chemicals.This project,called PFACTS,includes the development of an online platform,AI tools,and community e

332、ngagement to help reduce and eventually eliminate the nonessential use of PFAS.In February 2024,PFACTS was selected for a Phase 2 award from the NSFs Convergence Accelerator as part of Track I:Sustainable Materials for Global Challenges.This effort builds upon the Phase 1 year of planning,scoping,an

333、d collaborating with key semiconductor industry groups and leading consumer electronics manufacturers during 2023.Wildlife Habitat Council(WHC):For information on our engagement with the WHC,see Biodiversity on page 53.45 Contents Introduction Governance Social Environment Appendix IBM 2023 ESG Report Energy and Climate Change For decades,IBM has been committed to addressing climate change through