IBM relies on a series of metrics to measure our corporate responsibility efforts every year. 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.
denotes key performance indicator
We continue to support our employees and the business in building and modernizing the critical skills needed to innovate, work in new ways and adopt a growth mindset. IBM Learning creates learning solutions based on users’ needs and wants. We offer personalized, real-time and inspiring learning experiences delivered through a cognitive and cloud-based digital platform. We use Watson Analytics to measure the impact through Net Promoter Score, analyze the emotional sentiment and predict digital learning preferences. These practices allow us to hone our learning solutions to better enable IBMers to achieve their full potential, provide value to our customers and support our strategic imperatives of cognitive, cloud and agile.
Women in the workforce
IBM remains dedicated to addressing the specific needs of women in our workforce and to creating work-life and career development programs that address these needs. We are committed to the progress and leadership development of women in our workforce and to providing opportunities across the more than 175 countries where we do business.
Global illness/injury rate
IBM supports and encourages employees and retirees in skills-based volunteering in their local communities around the world. Since 2003, when IBM launched its volunteering enablement initiative, 287,000 registered users have logged over 20 million hours of service worldwide.
|Retiree and employee volunteer hours (K)||2012*||2013||2014||2015||2016|
*IBM celebrated its Centennial in 2011 – 2012, and the exceptionally high volunteer hours reflect the many special volunteer projects associated with the Centennial.
IBM tracks and reports global corporate contributions by issue, geography and type of grant. Giving by issue reflects our goal to maintain education as our primary focus by using IBM’s innovative skills and technology to improve student performance. Giving by geography helps us to 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 — is what we believe distinguishes IBM. We have long believed that money alone does not solve problems. Innovative solutions are also required to transform approaches to societal challenge and achieve measurable outcomes.
While education is our highest priority, we cannot achieve educational improvement without understanding its connection to other issues. Maintaining strategic investments in human services, culture, health and the environment gives us a more complete picture of how to effectively transform education. 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.
The geographic distribution of our citizenship contributions reflects how IBM operates — in a global, fully integrated fashion. Some of our contributions are given on a globally competitive basis, so geographical distribution may vary due to the number and quality of applications.
We do not set goals for percentage change in contributions year-to-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 use our most innovative solutions successfully and have a significant, 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.
|Global corporate contributions by geography ($M)||2012||2013||2014||2015||2016|
|Europe, Middle East, Africa||64.4||65.7||64.8||82.2||104.2|
*Combined Canada with U.S. as North America – both countries reported separately in previous reports.
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 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.
IBM’s goal is to achieve annual energy conservation savings equal to 3.5 percent of IBM’s total energy use. In 2016, IBM again achieved this goal, attaining a 5.3 percent savings from its energy conservation projects.
Renewable electricity procurement
IBM’s renewable electricity procurement goal is to purchase 20 percent of our electricity consumption from renewable sources by 2020, over and above the quantity of renewable energy provided as part of the mix of electricity that we purchase from the grid. In 2016, IBM contracted with its utility suppliers to purchase approximately 783,000 megawatt-hours of renewable electricity, representing 21.5 percent of our global electricity consumption and exceeding our goal four years early.
CO2 emissions reduction
Our third-generation CO2 emissions reduction goal is to reduce CO2 emissions associated with our energy consumption 35 percent by year-end 2020, against base year 2005 and adjusted for acquisitions and divestitures. In 2016, IBM achieved and exceeded this goal four years early as IBM reduced its operational CO2 emissions by 38.1 percent against the 2005 baseline.
Product energy efficiency
IBM has two goals related to product energy efficiency. The first goal is to improve the computing power delivered for each kilowatt-hour of electricity used with each new generation or model of a product. The second goal is to qualify its new server and storage products to the ENERGY STAR program criteria where practical, and where criteria have been developed for the specific server or storage product type. Please see the 2016 product stewardship goals and performance table for information regarding performance against these goals.
Nonhazardous waste recycling
Our goal is to send an average of 75 percent (by weight) of the nonhazardous waste generated at locations managed by IBM to be recycled. In 2016, we recovered and recycled 86 percent of our nonhazardous waste.
Product end-of-life management
IBM’s goal is to reuse or recycle end-of-life IT products such that the amount of product waste sent by IBM’s product end-of-life management (PELM) operations to landfills or incineration for treatment does not exceed a combined 3 percent (by weight) of the total amount processed. In 2016, IBM’s PELM operations sent only 0.6 percent of the total processed to landfill or incineration facilities for treatment.
In early 2016, IBM established a new goal to achieve ongoing year-to-year reductions in water withdrawals at data centers and other large IBM locations in water-stressed regions. In 2016, IBM reduced water withdrawals at these locations by 6.6 percent against a 2015 baseline year.
2016 global supplier spending fell $1.1 billion — primarily related to declines in IBM hardware revenue — with the largest decreases in Logistics Procurement (25 percent) and Production Procurement (19 percent). Our largest regional decrease was 9 percent in Asia Pacific. Total spending with diverse suppliers (first-tier) increased slightly from 2015, driven by diverse spending outside the U.S., and reached 8.5 percent of our global total spend.
The decrease in supplier improvement plans completed and accepted was due to a lesser number of social responsibility full audits and re-audits conducted in 2016. This is part of our normal assessment cadence, as EICC audits have a two-year duration which affects (up and down) the number of audits in the successive calendar year. IBM requires an improvement plan for all suppliers with noncompliance discovered during an EICC audit or re-audit of their facilities; implementation of the plans may begin in one calendar year and complete in the next.