Supplier diversity IBM’s supplier diversity program operates in all countries where we do business, and diverse suppliers provide products and services in every IBM procurement category. In 2021, IBM spent $1.9 billion with first-tier diverse suppliers worldwide, including $1.4 billion in the United States (both totals include Red Hat and 10 months of Kyndryl data). IBM has committed to dedicating 15% of our first-tier diversity supplier spending to Black-owned businesses by 2025. IBM requires our first-tier suppliers to report their own diverse- supplier expenditures that are utilized in support of IBM contracts, and including this second-tier spending increases our 2021 aggregate total (first and second tiers) to $2.4 billion. Likewise, IBM submits quarterly reports on diversity spending to approximately 300 clients. Our 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 veterans, LGBTQ+ individuals, or people with disabilities. Opportunities are also expanded for nonprofit organizations that hire disabled persons, and for US HUBZone companies. You can learn more about our program at the IBM Global Procurement website. Responsible minerals sourcing Since the passage of Section 1502 of the Dodd-Frank Financial Reform Act of 2010, IBM’s 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 the Congo and adjoining countries. We deploy a multifaceted approach that includes robust policies and practices, as well as external collaboration, to reach these objectives. At year-end 2021, IBM’s in-scope suppliers reported using 266 smelters or refiners (SORs)—achieving 100% usage of conformant, active, or recycled 3TG SORs for the third consecutive year. IBM’s responsible minerals sourcing policy is aligned with the framework of the Organisation for Economic Co-Operation and Development (OECD) Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas (CAHRAs), including Annex II and the related supplements pertaining to downstream companies. IBM has expanded its efforts to include ethically sourced cobalt, following the approach we built with our suppliers on 3TG. IBM is an active member of the Responsible Minerals Initiative, and engages directly with our in-scope suppliers to collaborate and build capacity, to assure lasting progress. We require in-scope suppliers to source 3TG minerals from ethical SORs that are conformant or active in a recognized third-party validation scheme, or from 100% recycled scrap sources. IBM pairs skilled members of our responsible minerals team with suppliers to work on training, best practice sharing, and overcoming the challenges of a dynamic market environment where SOR status changes occur and must be adapted to. Our working relationships span multiple layers of the supply chain, in which many interrelationships exist, in order to sustain progress. Additionally, the IBM Almaden Research Center has invented a battery technology free of nickel and cobalt, which could potentially help eliminate the need for heavy metals in battery production, and transform the long-term sustainability of many elements of our energy infrastructure. You can learn more about our Responsible Minerals policy and due diligence process, or download our annual Conflict Minerals Reports and our white paper “IBM’s journey in Responsible Minerals Sourcing,” at IBM’s Responsible Minerals website. 2013–2021 3TG smelter or refiner validation 0 50 100 150 200 250 300 350 0 50 100 150 200 250 300 350 2016 2017 2018 2013 2014 2015 2019 2020 2021 Conformant SORs Nonconformant SORs 37 IBM 2021 ESG Report