Environmental impact – Reach net-zero greenhouse gas emissions by 2030 – Divert 90% (by weight) of IBM’s total nonhazardous waste from landfill and incineration by 2025 – Initiate 100 client engagements or research projects by 2025 in which IBM solutions have enabled demonstrable environmental benefits Equitable impact – Skill 30 million people globally by 2030 – Log 4 million volunteer hours by 2025 – $250 million investment in apprenticeship and new collar programs by 2025 – 15% of first-tier supplier diversity spend with Black-owned suppliers by 2025 Ethical impact – Include technology ethics education in training for IBM ecosystem partners, reaching 1,000 partners by end of 2022 – Added diversity modifier to executive annual incentive program metrics – Engage 100% of suppliers on sound practices, including social and environmental responsibility, ethics, and risk planning This report covers our progress and performance in 2021 and some notable activities during the first quarter of 2022. In selecting content for inclusion, we were inspired by frameworks and initiatives such as the Global Reporting Initiative (GRI) Standards, the Sustainability Accounting Standards Board, the Task Force on Climate-Related Financial Disclosures (TCFD), the Stakeholder Capitalism Metrics, and the United Nations Sustainable Development Goals. IBM’s full GRI report, using the GRI Standards guidelines, can be found online. 1 In 2021, we engaged Business for Social Responsibility (BSR)— a nonprofit consultancy dedicated to sustainability—to provide input on our ESG priorities and to inform our ongoing ESG reporting strategy. The data in this report covers our global operations. The information in this report has not been externally assured by third parties, except where noted. With the separation of Kyndryl on November 3, 2021, for comparability purposes, the qualitative and quantitative data included in this report is not consistent with the presentation in the 2020 and earlier reports, which included Kyndryl data. Except where noted, the presented data excludes Red Hat,® which can be found at the Red Hat Community and Social Responsibility website. You can find the unofficial submission of Red Hat EEO-1 data as of December 31, 2021, on our ESG website . Information about our business and financial performance is provided in the 2021 IBM Annual Report . Examples of IBM’s commitment to creating environmental impact, equitable impact, and ethical impact: 1 Each of the frameworks and initiatives referenced above discloses policies and material metrics related to ESG topics. However, the concept of materiality is defined differently under these reporting frameworks, and we do not attempt to formally reconcile the divergent uses of the term “materiality” by these frameworks. 8 IBM 2021 ESG Report 8 IBM 2021 ESG Report