Environmental governance and risk management

Governance process

The Vice President of Corporate Environmental Affairs and Product Safety (and Chief Sustainability Officer) is the top environmental executive of IBM. This person is authorized to set IBM's strategy for environmental affairs, including matters related to climate change, and to establish the company's environmental requirements, goals, and management system to drive consistent execution across IBM's global operations and achieve results consistent with environmental leadership.

The Directors and Corporate Governance Committee of the IBM Board of Directors oversees IBM's environmental programs and performance and is responsible for reviewing and considering IBM's position and practices on issues related to corporate responsibility such as protection of the environment, corporate citizenship, and philanthropic contributions. The Vice President of Corporate Environmental Affairs and Product Safety meets with the board committee annually to discuss IBM's environmental programs, performance, challenges and emerging issues.

Risks related to environmental matters

IBM's Enterprise Risk Management program considers environmental risks, including those related to climate change. Environmental risks are reviewed with relevant IBM organizations responsible for business operations continuity, supply chain, and reputation to ensure plans are in place to minimize risks. In addition, our global environmental management system also includes a process for identifying and assessing significant environmental aspects of our business.

IBM considers risks as identified by the Financial Stability Board Task Force on Climate-related Financial Disclosures (TCFD) in its risk management process. IBM senior management assesses the significance of environmental and climate-related risks and opportunities. They also manage these risks and provide updates to the IBM Board of Directors and its Directors and Corporate Governance Committee about these matters.

Furthermore, IBM has established internal objectives and targets for energy conservation, procurement of renewable electricity, greenhouse gas emissions reduction and other key environmental performance indicators. Performance against these objectives and targets is routinely monitored, and results are reviewed annually by the Board's Directors and Corporate Governance Committee.