Supplier environmental goals Since 2010, IBM has required all first-tier suppliers to establish their own social and environmental management systems as well as set quantifiable goals and publicly disclose progress toward those goals in the areas of energy management, GHG emissions reduction, and waste management. This is an important aspect of IBM’s deployment of the RBA code with its suppliers of hardware, software, and services. In 2021, IBM established three goals to help accelerate GHG emissions reductions in our supply chain and to encourage suppliers to take ownership and build their capabilities across a broad range of sustainability topics. These goals: – Require key suppliers in emissions-intensive business sectors to set an emissions reduction goal by 2022, addressing their Scope 1 and Scope 2 GHG emissions, that is aligned with scientific recommendations from the UN IPCC to limit Earth’s warming to 1.5 degrees Celsius above pre-industrial levels. + During 2021, we worked with logistics, airline, and hotel suppliers (representing 28% of suppliers covered by the scope of our goal) to collect information about their emissions reduction goals, and we have started an assessment to determine their alignment with the UN IPCC recommendations. In 2022, we will contact the remaining in-scope suppliers, complete an assessment of their targets, and work with any suppliers not yet meeting the goal to establish action plans. – Establish, by year-end 2021, individual baselines for fleet carbon intensity with each key carrier and shipment supplier involved with IBM’s product distribution globally. Starting in 2022, convene with each supplier to set a fleet carbon intensity reduction target covering the services they provide to IBM. + In 2021, we engaged our top five logistics suppliers and established a fleet carbon intensity baseline for their logistics operations. In 2022, we will continue to work with these suppliers to obtain more insights into the carbon intensity of their fleets and set carbon intensity reduction goals. – Convene an annual Sustainability Leadership Symposium to recognize progress and achievement among suppliers in emissions-intensive business sectors across applicable areas of environmental stewardship. + Our first Supplier Sustainability Leadership Symposium is planned for the second half of 2022. Remediation At IBM, we take swift action to clean up any environmental contamination found at former and current sites, and we are committed to taking proactive measures to prevent future contamination. When groundwater contamination was first discovered at one of IBM’s sites in 1977, we voluntarily initiated groundwater monitoring at our manufacturing and development locations worldwide. Today, IBM has more than 2,000 monitoring wells in place at its current and former locations. In 2021, IBM operated remediation systems that removed approximately 10,200 pounds of solvents from groundwater and soil vapor at three currently operating IBM locations and 12 former IBM locations. IBM also has financial responsibility for remediation at one additional former location. Under the US Superfund law, IBM is also involved in remediation activities at some third-party sites in the United States. The Superfund law creates retroactive responsibility for all parties that may have sent waste or otherwise contributed to contamination at a site, regardless of whether the site’s operations and/or the shipments of waste to that site were legal, or even best practices, at the time. Currently, IBM is participating in remediation activities or bears some financial responsibility at 19 Superfund sites. 47 IBM 2021 ESG Report