Spinoff of IBM’s managed infrastructure services business IBM completed the spinoff of its managed infrastructure services business, now a publicly traded company called Kyndryl, in early November 2021. Accordingly, the environmental information in this report includes 10 months of data for that business. When we publish results for calendar year 2022, they will cover a notably different base of operations. Energy and climate change IBM has been demonstrably committed to addressing climate change for three decades. As a founding partner, IBM helped the US Environmental Protection Agency (EPA) launch ENERGY STAR in 1992. We began disclosing CO 2 emissions in 1994, and made our first purchase of renewable electricity in 2001. IBM published its policy position on climate change in 2007, long before today’s acute focus, recognizing that climate change is a serious concern that warrants timely, meaningful action on a global basis. In 2015, IBM voiced its support for the Paris Agreement, and reaffirmed such support in 2017. IBM became a founding member of the Climate Leadership Council in 2019 and continues to support the council’s bipartisan plan for a carbon tax, with its proceeds—a “carbon dividend”—to be returned to citizens. Updated goals In 2021, IBM established its third consecutive goal for the use of renewable electricity; its fifth consecutive goal to reduce greenhouse gas (GHG) emissions; a goal to achieve net-zero GHG emissions; and related goals for energy conservation, data center energy efficiency, energy-efficient product design, suppliers, and client engagements. Nine of our goals involve climate change. Five are described below, and the others are cited in this report’s sections regarding product energy efficiency and supplier environmental goals: – Procure 75% of the electricity IBM consumes worldwide from renewable sources by 2025, and 90% by 2030. – Reduce IBM’s GHG emissions 65% by 2025, against base year 2010, adjusted for acquisitions and divestitures. – Reach net-zero GHG emissions by 2030, using feasible technologies to remove emissions in an amount which equals or exceeds IBM’s residual emissions. Aim for residual emissions of 350,000 metric tons of CO 2 equivalent or less by 2030. IBM joined the Climate Neutral Data Centre Pact in 2021. As a member, IBM will continue to increase energy efficiency, purchase additional renewable electricity, conserve water, and facilitate the reuse and repair of IT equipment at our data centers. Also in 2021, IBM became a founding member of the European Green Digital Coalition (EGDC). The EGDC is a group of companies committed to supporting the green and digital transformation of the European Union. In joining the coalition, IBM pledged to continue developing digital technologies and services that are more energy- and material-efficient, along with methods and tools to measure the environmental impacts of these technologies. IBM joined a dozen other enterprises as inaugural members of the Massachusetts Institute of Technology Climate and Sustainability Consortium, whose mission is to accelerate the large-scale, real-world implementation of solutions to address the threat of climate change. Charity Wayua of IBM Research Africa spoke at a UN Environment Assembly meeting on big data for the environment in March 2022. Photo credit: DSkilton/UN-SPBF 40 IBM 2021 ESG Report