IBM has been demonstrably committed to addressing climate stress through the company’s energy conservation and climate protection programs for decades. The company began disclosing its carbon dioxide (CO₂) emissions in 1994 and set its first CO₂ emissions reduction goal in 2000.
IBM recognizes climate stress as a serious concern that warrants timely, meaningful action on a global basis to reduce the atmospheric concentration of GHGs in accordance with scientific judgment.
- IBM believes all sectors of society, the economy and governments worldwide must participate in solutions to climate stress.
- IBM supports joint efforts by the private and public sectors to reduce global GHG emissions. These initiatives are most effective when they are implemented through market-driven mechanisms and are economically efficient, environmentally effective, and sustainable.
- IBM believes a diverse energy portfolio is necessary to achieve an orderly adaptation to a world in which GHG emissions are constrained while maintaining successful economies and secure supplies of energy, and also meeting the needs of humanity.
- IBM considers energy conservation to be a cornerstone of climate protection. IBM will continue to conserve energy and continually improve the energy efficiency of its operations, products and services while collaborating with and encouraging its global suppliers to do likewise.
- Consistent with its values, IBM will continue to collaborate with clients, governments and other partners to create innovations and solutions to address climate challenges.
IBM’s goal is to reach net-zero operational GHG emissions by 2030 by conserving energy and purchasing renewable electricity to reduce residual GHG emissions to less than 350,000 mtCO2e and by using feasible technologies to remove those residual emissions. Our net-zero ambition is supported by additional goals to:
- Procure 75% of the electricity IBM consumes worldwide from renewable sources by 2025, and 90% by 2030.
- Implement a minimum of 3,000 new energy conservation projects to avoid the consumption of 275,000 MWh of energy from 2021 to 2025.
- Improve average data center cooling efficiency 20% by 2025, against base year 2019.
- Improve the computing power delivered for each kilowatt-hour of electricity consumed for new server products as compared to equivalent, previous-generation products with a valid upgrade path.
For additional details on our energy and climate goals, please see:
We recognize that the most effective way to reduce our GHG emissions is to make our operations more efficient and thereby reduce IBM’s actual consumption of energy, which is the company’s most significant source of GHG emissions. IBM established its global energy conservation program in 1973 and developed the methodology leading to its first energy conservation goal in 1975. The company continues to focus on ways to further reduce its energy consumption.
Energy consumption
In 2024, the total energy consumption by IBM’s global operations was approximately 2,236,000 MWh across all commodities, of which 83% was electricity. This consumption represents a decrease of 2% versus 2023 and was driven by increased operational efficiencies and a continued focus on energy conservation. While consumption grew in some of our operations due to increased workloads associated with developing and training our Granite AI models, this growth was offset by reductions in other operations.
Energy conservation projects
In 2024 we implemented 544 energy conservation projects across more than 160 locations globally, avoiding an estimated 98,000 MWh of energy consumption and 29,000 mtCO2e. As of year-end 2024, we had completed 2,650 energy conservation projects since 2021, resulting in 355,000 MWh of energy consumption avoided, surpassing our 2025 conservation target a year early. The primary driver of energy savings was IT equipment upgrades across our data centers.
Moving forward, we will focus our conservation efforts on initiatives that directly eliminate Scope 1 emissions, aligning with our overarching goal of achieving net-zero emissions by 2030.
Data center energy efficiency
To minimize the environmental impact of our data centers, we implement a multifaceted approach focused on energy efficiency:
Space Utilization: We optimize the use of space within our existing facilities, enhancing workload density and thereby decreasing energy consumption per unit of compute power.
Technology Upgrades: We leverage advancements in hardware and software efficiency by investing in energy-efficient IT infrastructure.
Leasing Strategy: We prioritize leasing co-location data centers where renewable electricity is available and with superior energy efficiency, equipped with advanced, state-of-the-art cooling and power management systems.
We track performance versus our data center cooling efficiency goal by measuring the Power Usage Effectiveness (PUE) of our data centers. In 2024, we surpassed our 2025 data center cooling efficiency goal with an estimated weighted average PUE of 1.41 and an improvement of 25.5% versus our 2019 baseline.
Renewable electricity consumption
We increased our renewable electricity consumption to approximately 1,480,000 MWh in 2024, representing 79.6% of our total electricity consumption and meeting our 2025 renewable electricity procurement goal a year early. Our renewable electricity purchases included 67.6% contracted directly from power suppliers or obtained via landlords, and 12% were already in the electricity mix we received from the grid.
Data center renewable electricity consumption
Overall, 83% of the electricity consumed in our data centers came from renewable sources. Globally, 35 data centers were supplied with 100% renewable electricity in 2024.
Renewable electricity procurement strategy and reporting
Our reporting of renewable electricity consumption counts only what is generated in the grid regions where our consumption actually occurs. We do not rely upon the purchase of unbundled renewable energy certificates from other grid regions to comprise any “percent renewable” if we cannot credibly consume the electricity those certificates represent. Our definition of “grid region” aligns with how the U.S. Energy Information Administration1 defines power balancing authorities’ territories. We apply the same concept for other jurisdictions.
IBM includes renewable electricity generated from wind, hydropower, biomass, solar, and geothermal sources in our reported renewable electricity consumption. We report all of our contracted renewable electricity purchases whether from new or existing generation sources, “additional” or otherwise, and without discriminating against large hydropower plants. All purchases signal to suppliers our desire for them to maintain and broaden their renewable electricity offerings. This approach also recognizes that all sources of renewable electricity contribute to decarbonizing our economy.
IBM methodology to calculate its consumption of renewable electricity
IBM differentiates between two categories of renewable electricity consumption:
- Contracted renewables: purchases of renewable electricity for which IBM enters into a direct contractual relationship with a utility, power supplier or landlord to specifically procure and consume renewable electricity.
- Grid-supplied renewables: quantity of renewables that is part of the mix of electricity our facilities automatically receive from the grid.
To quantify contracted renewable purchases, the company relies upon its contracts with its providers. Typically, IBM obtains bundled Renewable Energy Certificates (RECs) or Guarantees of Origin (GoOs) in corresponding quantities that confirm this information. In geographies where RECs or GoOs are not available, the company obtains other equivalent documentation as alternative evidence to RECs or GoOs.
IBM estimates the grid-supplied renewables using publicly available power generation data by source from the International Energy Agency2, the U.S. Environmental Protection Agency3 (at grid sub-region level) and the Canada Energy Regulator4 (at provincial level). The company endeavors to obtain the most recent reliable data for any given reporting cycle.
IBM does not arbitrarily assign the consumption of renewable electricity to certain types of operations to be able to show desirable metrics (e.g., assigning all of the company’s renewables consumption to its data center operations). The company’s approach is to assign renewables consumption proportionally to the operations consuming the electricity at a facility level.
1 U.S. Energy Information Administration
3 U.S. Environmental Protection Agency eGrid Summary Tables 2018
IBM’s GHG emissions reduction goals
IBM set its fifth-generation GHG emissions reduction goal in 2021 to reduce operational GHG emissions 65% by 2025 against base year 2010, adjusted for acquisitions and divestitures. This goal covers all of IBM’s Scope 1 and Scope 2 emissions, including emissions associated with IBM’s electricity use at co-location data centers. Beginning in 2024, emissions from these co-location data centers, which were previously classified as Scope 3 emissions, were reclassified as Scope 2 emissions to better align with the concept of operational control. These emissions continue to be reported within our energy and climate goals.
The company’s goal is based on science. The United Nations Intergovernmental Panel on Climate Change (UN IPCC), in its “Special Report: 1.5 C°,” indicates that anthropogenic CO₂ emissions must decrease 45% between 2010 and 2030 to limit Earth’s warming to 1.5 degrees Celsius above pre-industrial levels. This translates to an annual rate of reduction of 2.25%. IBM’s goal achieves a rate of reduction of 4.3% per year.
After meeting our 2025 operational GHG emissions reduction target in 2023, we continued to reduce our operational GHG emissions to 265,000 mtCO2e in 2024. We are now below the committed residual emissions target of 350,000 mtCO2e in our 2030 net zero goal.
Going forward, we aim to continue driving emissions reductions through additional actions to conserve energy and meet our 90% renewable electricity target. We continue to evaluate options to remove our residual GHG emissions as we approach our net-zero target of 2030.
IBM’s approach to addressing value chain GHG emissions
Scope 3 emissions occur in the value chain of a reporting company – both upstream and downstream. These emissions result from the activities of a reporting company’s suppliers, clients and employees. Estimating Scope 3 emissions accurately can be challenging due to a lack of primary data and the complexity of value chains.
In 2024, IBM estimated and reported emissions in four Scope 3 categories including, upstream leased assets, employee commute, business travel, and use of sold products. IBM anticipates reporting an inventory of all material Scope 3 categories in 2026 for calendar year 2025 emissions as we continue to implement our IBM Envizi Suite to simplify our Scope 3 reporting.
Our value chain GHG reduction efforts focus on capacity building across our supply chain. For example, IBM requires all first-tier suppliers to set GHG emissions reduction goals and publicly disclose their results. Key suppliers in emissions-intensive industries are further required to set science-based goals that align with the recommendations of the UN IPCC. To address downstream emissions, one of IBM’s longstanding goals is to continually improve the energy efficiency of our server products. We are also committed to using IBM offerings to help clients gain operational efficiencies and applying our technologies to accelerate solutions to global environmental challenges.
ISO 14064 — Part 1: Specification with guidance at the organization level for quantification and reporting of greenhouse gas emissions and removals
Following our decades-long practice of quantifying and disclosing greenhouse gas (GHG) emissions, IBM's internal processes for GHG emissions accounting and management were first certified against ISO 14064-1 in 2022.
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.