Performance Summary

Performance Summary

Over the course of a year, IBM uses a series of metrics to measure our corporate responsibility efforts. Below is a summary of the data in several important areas. Our Key Performance Indicators (KPIs) for various parts of the business are also noted, along with some explanation.

kpi Denotes Key Performance Indicator


Employees

Learning

At IBM, we focus on allowing IBMers to flourish by providing guidance and opportunities for career and expertise growth, allowing IBM and IBMers to succeed in this rapidly changing world. IBM blends traditional, virtual, and work-enabling learning and development activities to accomplish this. This strategy enables us to provide timely, comprehensive, and targeted learning while achieving more efficient, effective learning delivery.

  2009 2010 2011 2012 2013
Learning investments worldwide ($M) kpi 490 547 466 477 525
Learning hours worldwide (M) 25.5 28.6 27.4 33 40
Learning hours per employee kpi 64 67 63 78 82

Women in the workforce

For more than 100 years, IBM has shown a dedication to addressing the specific needs of women in our workforce and to creating work-life and career development programs that address their needs. We are committed to the progress and leadership development of women in our workforce and providing opportunities across the more than 175 countries where we do business.

Women in the workforce % kpi 2009 2010 2011 2012 2013
Global workforce 28.7 28.1 28.5 30 30.1
Global executives 21.2 21.4 21.5 22.3 23.2
Managers 24.6 24.8 24.6 25.6 26.0

Global illness/injury rate

2009 2010 2011 2012 2013
Total number (per 100 employees) 0.27 0.27 0.33 0.29 0.30

Volunteering

IBM supports and encourages employees and retirees in skills-based volunteering in their local communities around the world.

Retiree and employee volunteer hours (k) 2009 2010 2011* 2012* 2013
Asia Pacific 118 111 663 116 117
Europe, Middle East, Africa 155 198 430 216 201
Latin America 43 44 152 39 48
North America 954 1,110 1,956 1,210 1,130

* IBM celebrated its Centennial in 2011-12 and the exceptionally high volunteer hours reflect the many special volunteer projects associated with the Centennial.


Giving

IBM tracks and reports global corporate contributions by issue, geography, and type of grant. Giving by issue is important, as our goal is to maintain education as our primary focus by using IBM’s innovative skills and technology to improve student performance. Giving by geography is also important to help us understand the alignment of our resources with our global operations. But the type of our giving—a combination of services, technology (including software), and cash designed to transform approaches to societal challenge and achieve measureable outcomes—is what we believe distinguishes IBM.

While education is our highest priority, educational improvement cannot be achieved unless its connection to other issues is understood. Consequently we intend to maintain strategic investments in human services, culture, health, and the environment. In addition, it is vitally important that we maintain the flexibility to address new initiatives and meet extraordinary external conditions, such as disaster relief and recovery. We believe that our contributions in 2013 met these goals. Even in a challenging economic environment, our overall contributions last year rose by more than $10 million, with education continuing as our largest area of activity.

IBM operates in a global, fully integrated fashion. This is reflected in the distribution of our citizenship contributions by geography. Some of our contributions are given on a globally competitive basis, so geographical distribution may vary due to the number and quality of applications. By type of contribution, technology and services as a percentage of total contributions increased in 2013, consistent with our focus on providing transformative and effective solutions.

We do not set goals for percentage change in contributions year over year, nor for giving by geography or by type of contribution. We focus instead on increasing the quality of our work with organizations on projects that successfully use our most innovative solutions and have a significant and measureable impact on key social issues. Current trends in contributions will not necessarily continue, but rather will be determined within the framework of our goal to increase the effectiveness of our contributions.

2009-2013 global contributions

Global corporate contributions by issue ($M) kpi 2009 2010 2011 2012 2013
K-12 education 44.0 34.7 28.8 24.7 22.4
Higher/other education 92.4 116.8 113.0 118.3 124.7
Culture 5.7 3.2 3.8 3.7 3.0
Human services 15.0 7.7 17.9 16.9 17.3
Health 4.2 4.3 4.5 3.5 3.5
Other 19.9 16.1 22.7 24.8 32.0
Environment 4.7 6.4 5.4 5.2 5.0
Total 185.9 189.2 196.1 197.1 207.9
Global corporate contributions by type ($M) kpi 2009 2010 2011 2012 2013
Cash 40.3 39.3 46.9 42.6 41.4
Technology 102.2 105.3 91.3 99.2 100.2
Services 43.4 44.6 57.9 55.3 66.3
Total 185.9 189.2 196.1 197.1 207.9
Global corporate contributions by geography ($M) 2009 2010 2011 2012 2013
United States 77.1 75.8 70.8 69.9 75.7
Asia Pacific 45.4 34.8 36.3 35.9 37.5
Canada 8.4 6.8 6.8 7.1 7.8
Europe, Middle East, Africa 35.2 54.3 60.2 64.4 65.7
Latin America 19.8 17.5 22.0 19.8 21.2
Total 185.9 189.2 196.1 197.1 207.9

Environment

IBM maintains goals covering the range of its environmental programs, including climate protection, energy and water conservation, pollution prevention, waste management, and product stewardship. These goals and our performance against them are discussed in the Environment section of this report. The goals identified here as KPIs are based on stakeholder interest and materiality. IBM considers all of its goals to be important metrics of the company’s performance against its commitment to environmental protection.

Energy conservation

IBM’s goal is to achieve annual energy conservation savings equal to 3.5 percent of IBM’s total energy use. In 2013, IBM again achieved this goal, attaining a 6.7 percent savings from its energy conservation projects.

Energy conservation kpi 2009 2010 2011 2012 2013
As % of total electricity use 5.4 5.7 7.4 6.5 6.7

Product energy efficiency

IBM’s product energy goal is to continually improve the computing power delivered for each kilowatt hour of electricity used with each new generation or model of a product. Performance is tracked by product line—servers and storage systems.

Product energy efficiency kpi—Please see the Product energy efficiency table

Recycled plastics

In 2013, 14.8 percent of the total weight of plastic resins procured by IBM and its suppliers through IBM’s corporate contracts for use in IBM’s products were resins that contained between 50 and 100 percent recycled content. Comparing only the weight of the recycled fraction of these resins to the total weight of plastics (virgin and recycled) purchased, 10.8 percent of IBM’s total weight of plastic purchases in 2013 was recycled plastic versus the corporate goal of 5 percent recyclate.

Recycled plastics 2009 2010 2011 2012 2013
% of total plastics procured through IBM contracts for use in its products that is recyclate 13.2 11.5 12.4 12.6 10.8

Product End-of-Life Management (PELM)

IBM’s goal is to reuse or recycle end-of-life IT products, such that the amount of product waste sent by IBM’s is PELM operations to landfills or incineration for treatment, does not exceed a combined 3 percent of the total amount processed.

In 2013, IBM’s PELM operations sent only 0.3 percent of the total processed to landfill or incineration facilities for treatment.

Product End-of-Life Management kpi 2009 2010 2011 2012 2013
% of total processed sent by these operations to landfill or incineration for treatment 0.5 0.6 0.4 0.3 0.3

Hazardous waste management

IBM’s goal is to achieve year-to-year reduction in hazardous waste generated from IBM’s manufacturing processes indexed to output. IBM’s hazardous waste generation indexed to output increased 4.2 percent in 2013.

There were two primary factors for this year-to-year increase: an increase in fluoride/heavy metal sludge generation at one manufacturing site, due to an increase in hydrofluoric acid chemical used as part of the continued transition to single wafer tools and processes at thinner line width integrated circuits, and an increased use of the specific photoresist solvent to improve yield. The waste solvent was sent by IBM to be recycled.

Hazardous waste management 2009 2010 2011 2012 2013
% change in hazardous waste generated from manufacturing operations indexed to output +8.4 -21.6 -3.5 +2.9 +4.2

Nonhazardous waste recycling

Our voluntary environmental goal is to send an average of 75 percent of the nonhazardous waste generated at locations managed by IBM to be recycled. In 2013, we recovered and recycled 86 percent of our nonhazardous waste.

Nonhazardous waste recycling 2009 2010 2011 2012 2013
% recycled of total generated 76 79 78 87 86

Water conservation

IBM’s goal is to achieve annual water savings equal to 2 percent of total annual water usage in microelectronics manufacturing operations, based on the water usage of the previous year and measured as an average over a rolling five-year period. In 2013, new water conservation and ongoing reuse and recycling initiatives in IBM’s microelectronics operations achieved an annual 3.2 percent savings in water use, resulting in a rolling five-year average of a 2.3 percent savings versus the 2 percent goal.

Water conservation 2009 2010 2011 2012 2013
% annual water savings in microelectronics manufacturing based on previous year usage
and measured as an average over a rolling five-year period
3.1 2.8 2.6 2.2 2.3

Supply Chain

2013 supplier spend was down $2.5 billion driven largely by decreased volumes in our Systems and Technology group and from leveraging marketplace pricing opportunities. Geographic distribution of supplier spend remained consistent as our supply base is positioned to serve the needs of our customers on a global basis. We continued to grow diverse supplier spend, which provides IBM a competitive advantage by harnessing the flexibility of this group of companies to meet our changing business needs.

Supplier spending by category 2009 2010 2011 2012 2013
Services and general procurement (%) 69 64 64 64 67
Production procurement (%)         28 33 33 33 30
Logistics procurement (%) 3 3 3 3 3
Services and general procurement ($B)   22.6 22.1 23.4 22.8 22.1
Production procurement ($B) 9.3 11.6 12.0 11.5 9.7
Logistics procurement ($B) 0.9 1.0 1.1 1.0 1.0
Supplier spending by location 2009 2010 2011 2012 2013
North America (%) 39 35 34 35 36
Asia Pacific (%) 29 35 34 35 35
Europe, Middle East, Africa (%)   25 22 23 21 21
Latin America (%)                7 8 9 9 8
North America ($B) 12.8 12.3 12.5 12.4 11.8
Asia Pacific ($B) 9.4 12.2 12.5 12.4 11.4
Europe, Middle East, Africa ($B) 8.1 7.5 8.3 7.4 7.0
Latin America ($B)              2.5 2.7 3.2 3.1 2.6
First-tier spending kpi 2009 2010 2011 2012 2013
Total US ($B)       10.9 10.7 10.6 10.7 10.2
Diverse US ($B) 1.4 1.5 1.7 1.7 1.9
Diverse non-US ($M) 806 742 881 939 917

IBM’s supplier social responsibility assessment protocol requires that all audited suppliers create and submit a Corrective Action Plan (CAP) for all non-compliance, with priority given to major non-compliances. The CAP forms a conduit, linking initial audit findings to supplier-generated improvements geared toward resolution of root causes with verification taking place through a re-audit scheduled following the completion of all improvement actions. The reduction in 2013 Corrective Action Plans was the result of improved supplier code compliance during full audits in 2011-2013 and a reduction in the number of full scope audits as we transitioned aspects of our Supplier Assessment program.

Supplier corrective action plans completed and accepted kpi 2009 2010 2011 2012 2013
  84 316 473 311 175