2021, improved nonconformance rates from reaudits Full audits Reaudits 2021 distribution of nonconformances by section of the RBA code of conduct (68 full audits) 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% E w Supplier responsibility (Mgt) Management accountability and responsibility (Mgt) Food, sanitation, and housing (H&S) Legal and customer requirements (Mgt) Audits and assessments (Mgt) Occupational safety (H&S) Freely chosen employment (Lab) Emergency preparedness (H&S) Wages and benefits (Lab) Working hours (Lab) 21.1 8.5 10.6 2.8 9.9 1.4 7.1 0.0 0.0 6.0 0.0 4.2 0.0 4.2 3.5 0.7 3.5 0.7 2.8 2.1 Environmental 6% Health and Safety 28% Labor 32% Ethics 7% Management Systems 27% These results include Kyndryl for the full year. These results include Kyndryl for the full year. 2021, top 10 nonconformances from 68 full audits (661 total nonconformances) Priority and major nonconformance Minor nonconformance Risk assessment and risk management Nondiscrimination Audits and assessments Occupational injury and illness Management acccountablity and responsibility Wages and benefits Freely chosen employment Occupational safety Emergency preparedness Working hours 8.9% 3.3% 12.2% 6.4% 0.9% 7.3% 4.2% 2.1% 6.3% 4.2% 1.1% 5.3% 3.3% 1.1% 4.4% 10.4% 12.5% 2.1% 3.9% 0.5% 4.4% 3.5% 0.2% 3.6% 3.0% 0.5% 3.5% 2.6% 0.1% 2.7% 0.0% 3.0% 6.0% 9.0% 12.0% 15.0% These results include Kyndryl for the full year. 36 IBM 2021 ESG Report