IBM will publish year-end 2021 progress against its new renewable electricity and GHG emissions reduction goals in June 2022, once we have completed our annual external limited assurance audit of our GHG emissions calculation process and underlying data. + With reference to the voluntary Greenhouse Gas Protocol, this addresses Scope 1, Scope 2, and Scope 3 emissions associated with electricity consumption at third-party co-location data centers. + IBM has also committed to initiating 100 client engagements or research projects by 2025, in which IBM solutions have enabled demonstrable environmental benefits. For example, IBM Research is supporting the development of new carbon-removal solutions by accelerating the discovery of enabling materials. – Implement a minimum of 3,000 new energy conservation projects to avoid the consumption of 275,000 megawatt- hours (MWh) of energy from 2021 to 2025. – Improve average data center cooling efficiency 20% by 2025, against base year 2019. IBM’s new 2025 GHG emissions reduction goal achieves a rate of reduction that exceeds what scientists from the UN Intergovernmental Panel on Climate Change (IPCC) indicate is necessary to limit Earth’s warming to 1.5 degrees Celsius above pre-industrial levels. Our energy and emissions goals and reporting cover all activities taking place in IBM-owned or leased facilities (inclusive of Red Hat). These facilities also include IBM data centers located in facilities managed by third parties where IBM does not procure the energy or control the operations of the buildings—also known as co-location data centers. Energy conservation Continuing IBM’s five decades of commitment, we implemented 936 energy conservation projects in 2021 across more than 190 locations globally, avoiding 90,000 MWh of energy consumption and 26,500 metric tons (MT) of CO 2 emissions, and saving $9.9 million. 1 We adjusted schedules for lighting levels, temperature and other building systems to avoid unnecessary consumption of energy during the COVID-19 pandemic, when buildings were underutilized. We also implemented projects in our data centers to improve the energy efficiency of both cooling and IT equipment, retrofitted lighting, and improved the operational efficiency of our building infrastructure. 1 In measuring performance against IBM’s energy conservation goal, we only include the first year’s savings from projects. Accordingly, IBM’s total energy savings and CO 2 emissions avoidance from these projects are greater than this simple summation of the annual results. We do not include reductions in energy consumption resulting from downsizings, the sale of operations or cost-avoidance actions, such as fuel switching and off-peak load shifting, in our energy conservation results. 2021 energy conservation savings by project type Building controls projects 2% IT and cooling efficiency projects in data centers 30% Heating, ventillation, and air conditioning projects 37% Lighting efficiency and controls projects 9% Other projects 11% Central utility plant efficiency projects 11% 41 IBM 2021 ESG Report