IBM calculates its greenhouse gas (GHG) emissions according to The Greenhouse Gas Protocol Corporate Accounting and Reporting Standard and follows procedures aligned with the ISO 14064-1 standard. Please see our independent limited assurance verification statement.
With few exceptions, IBM does not estimate Scope 3 GHG emissions associated with our value chain because the necessary gross assumptions associated with such estimates simply do not enable credible, factual results. For more information, please see our Position on Scope 3 GHG emissions.
Notes:
1 Our reported emissions for calendar year 2021 include ten months of operation of IBM's managed infrastructure services business, which was spun off into a new company, Kyndryl, on November 3, 2021.
2 Figures have been rounded to the nearest thousand.
Description of Scope 3 GHG emissions
- Purchased goods and services
These are the emissions associated with IBM's use of electricity in data centers located in facilities managed by third parties where IBM does not procure the electricity (also referred to as co-location data centers).
- Use of sold products
These are the emissions associated with the electricity consumption of our sold products when they are used by our clients. In estimating emissions from the use of our sold products, we only capture products sold during the reporting year and account for 12 months of estimated consumption. We use product specifications such as nameplate power, quantity of products sold every year, we make assumptions around typical client hardware utilization rates, and use industry average Power Usage Effectiveness and global electricity GHG emission factors to estimate these emissions. We do not extrapolate this data to estimate emissions around a hypothetical lifetime of our products because that would require gross assumptions based on lifetime and specific client applications.
- Upstream leased assets
In some countries, IBM provides leased vehicles for employees that they may use for personal purposes. For these vehicles, we have set standard guidelines that require leasing of vehicles with lower emissions profiles. These guidelines enable reductions in average car emission levels as the car fleets are renewed.
- Business travel
These emissions are associated to business air travel on commercial carriers and car rentals. Business travel is a necessary and important part of ensuring that IBM understands our clients' needs and delivers the best client experience possible. We have worked with rental car companies to require that they offer more fuel-efficient vehicles to our employees while traveling for business. IBMers can reduce the need for travel by taking advantage of strategic collaboration and meeting tools that allow them to easily engage with clients and their colleagues to have productive meetings, without the need for travel.
- Employee commuting
Our reported figure for employee commuting emissions only includes estimations made for our U.S. employees since this is the population for which we can make credible assumptions around their commuting behavior and we have access to reliable third-party data to estimate emissions. IBM has been active for decades in promoting programs that reduce employees' work-related commutes and associated GHG emissions. For example, many locations promote biking to work by having bicycle lockers, racks and showers available on-site. At several larger locations, IBM sponsors shuttle services to transport employees to mass transit stations and also between IBM campuses and buildings Also, many IBM locations are within reach of the public transportation system, giving employees the choice to use more energy-efficient mass transit to commute to work. Globally, many of our locations partner with local public transit authorities to develop ride-sharing programs and negotiate subsidized transit passes for IBM employees. IBM is a member of the Best Workplaces for Commuters (BWC) program. Currently, seven of IBM's largest campuses in the United States are registered as BWC sites. Our BWC-registered locations actively work with their local transit commissions and offer other commuter benefits on-site to integrate IBM's programs with regional programs, increasing commuting options for our employees.