IBM's Environmental Management System- ISO 14001

1. IBM's Environmental Management System- ISO 14001 NC DPPEA Workshop August 24, 1999

2. IBM's Business • Develop, Manufacture and Sell Information Technology Products, Including Computers and Microelectronic Technology, Software, and Networking Systems and Information Technology-Related Services Worldwide.

3. IBM’s Business (Cont.) • IBM Product Units • Server Group • AS 400; RS 6000; System 390 • Personal Systems Group • Printing Systems Company • IBM Microelectronics Division • Networking Hardware Division • Storage Systems Division • Retail Store Solutions • Display Business Unit IBM Product Units

4. RTA's Manufacturing and Development Mission • Manufacture/assembly of computer and networking hardware products • Computer refurbishing operations • Hardware/software development activities • Human Resources for US • Customer call centers for software/hardware support

5. IBM's EMS • IBM has one EMS with a tiered approach Corporate Provide Feedback for Continual Improvement Develop Common System Locations and/or Division Operating Units

6. IBM's EMS • Corporate's Role • Set environmental policy • Develop IBM WW environmental strategy • Define requirements of IBM's EMS • Establish environmental Corporate Instructions and Environmental Practices • Set Corporate level environmental objectives and targets

7. IBM's EMS • Corporate's Role (cont.) • Provide guidance to locations and/or • Division/Operating Units • Measure environmental performance • Perform environmental affairs audits at locations • Review status of environmental affairs with top management • Communicate environmental affairs progress to interested parties

8. IBM's EMS • Location and/or Division/Operating Units' Role • Develop and implement programs to conform with IBM's EMS • Identify legal requirements and apply for permits • Develop location and/or Division/Operating Unit procedures • Monitor compliance to legal and IBM requirements

9. IBM's EMS • Location and/or Division/Operating Units' Role (cont.) • Report compliance to agencies • Perform self-assessment • Review EMS with Location and/or Division/Operating Unit management • Report key characteristics to Corporate

10. IBM's EMS Control • Primary control point of environmental management for Locations and/or Divisions/Operating Units: • Locations control manufacturing processes, activities, and services • Divisions/ Operating Units control products

11. Core Elements of IBM's EMS • Environmental Policy • Corporate Instructions • Environmental Practices • Worldwide EMS Manual

12. IBM's Environmental Policy • IBM has a single corporate-wide environmental policy, which • Commits IBM to Environmental Affairs Leadership • Contains 11 elements addressing a wide array of environmental concerns for IBM's business activities, products and services • Commits to striving for continual improvement of the EMS and performance • Requires every employee and every contactor on IBM premises to follow it

13. IBM's Corporate Instructions • Applicable to all business units and locations • Specify broad requirements on environmental subjects, such as: • energy management • hazardous materials transportation • environmentally conscious product design • supplier evaluation of environmental considerations • incident reporting • environmental impact assessment • and others

14. IBM's Environmental Practices • Applicable to all business units and locations • Specify detailed requirements for air emissions, water discharges, waste management, transfer and storage of liquids, and chemical management

15. IBM Worldwide EMS Manual • Aligns IBM's existing EMS with ISO 14001 • Re-emphasizes and delineates EMS requirements for Corporate Environmental Affiars and Locations and/or Operating Units • Used ISO 14001 as a tool to improve the effectiveness, efficiency, and consistency of IBM's EMS

16. Additional Core Elements at RTA • RTA EMS Manual • Product EMS Manuals (RSS, NHD, PSG) • Program Manuals • Emergency Planning Manual

17. Environmental Aspects • Process • Team of environmental experts • Criteria used for identification of significant environmental aspects • Environmental impact of the aspect • Legal /regulatory requirements • IBM environmental requirements • Good neighbor (activities and services) • Customer views (products)

18. Examples of Environmental Aspects • Activities and Services • Chemical use • Hazardous waste generation • Air emissions • Waste recycling • Hazardous materials transportation • Energy consumption • Groundwater/soil remediation/cleanup

19. Examples of Environmental Aspects • Products • Product energy consumption • Recyclability/reuse • Product chemical emissions • Recycled/recyclable materials • Product protective packaging (shipping) • Supplies/consumables

20. Significant Aspects Focused at RTA • Product Aspects • Three product groups: Networking Hardware, Personal Systems Group, and Retail Store Solutions • Key Significant Aspects Related to Activities and Services • Solid waste mgmt/recycling • Air emissions (including employee vehicle emissions) • Energy consumption

21. Objectives and Targets • Objectives and Targets established at both Corporate and Location/Division levels • Locations/divisions may establish additional product specific targets, but must adopt Corporate's • Primary Considerations • Legal / regulatory requirements • IBM Corporate requirements • Other requirements (e.g., Energy Star) • Significant environmental aspects • Technological options • Financial, operational & business requirements • Views of interested parties

22. IBM Corporate Objectives and Targets (Activities and Services) • Hazardous waste reduction • Year to year overall reduction • Energy Conservation • 4% overall consrvation savings • Nonhazardous waste recycling • 67% solid waste • 35% industrial waste • Perfluorocompounds Reduction • 40% reduction by YE 2002

23. IBM Corporate Objectives and Targets (Products) • Energy efficiency • Energy Star • Power consumption per unit of function • Materials Recovery Centers landfill reduction • 10% reduction in 1999 versus 1998 • Plastics recycling • Purchase 10% recycled plastics by 2001 • Design for Environment • Assessments on at least 80% of products released in 1999

24. Engineering Center for ECP (RTP, NC) • ECP design, assessment & metrics • Material selection • Plastics recycling • Regulatory tracking& interpretation • Product end-of-life management programs • Support of materials recovery, reutilization • operations • ISO14001 support • Life cycle assessment studies • Environmental packaging • ECP communications

25. IBM’s Registration to ISO 14001

26. Goal • Achieve Single Worldwide Registration to ISO 14001 Covering IBM's Manufacturing and Hardware Development Locations Across All Business Units • Complete registration audits at 30 Locations in 14 Countries Plus Corporate Environmental Affairs • Location populations: <1,000 to 20,000 • Business Units include Microelectronics, Storage Systems, S/390 Servers, AS/400 Servers, RS/6000 Servers, PC Servers, Personal Computers, Networking Hardware

27. Reasons for Goal • It Reinforces the Integration of Environmental Considerations Throughout IBM's Business • It Positions IBM to be Competitive • It is Consistent with Our Quest for Environmental Leadership • A Single Worldwide Registration is Consistent with Our Long-standing EMS and it is the Most Efficient Approach

28. How We Proceeded • Completed Worldwide Gap Analysis • Published Worldwide EMS Manual Consistent with ISO 14001 • Developed Common Solutions • Training • Identification of Significant Aspects • EMS Audit Methodology • Retained a Single Worldwide Registrar • Transferred Existing Site Registrations (through Surveillance) and Began Audits at New Locations

29. Advantages of Our Approach • Capitalizes on IBM's Existing Global EMS • An Outstanding Way to Help Ensure We Execute the Same EMS No Matter Where in the World We Do Business • Consistency Yields Efficiency and Effectiveness • Least Cost Approach • Avoids Multiple Registrations by Multiple Registrars • Enables Ongoing Audits to Proceed According to Sampling Plan

30. Challenges with Our Approach • Significant Worldwide Coordination Required • Would be Very Difficult to Integrate with Existing ISO 9000 Registrations • Single Registrar Expects a Well-Structured, Mature, and Consistent EMS at all IBM Locations -- Even those that are New in the Business

31. Current Results • Earned First Edition of Worldwide Registration in December, 1997 • Supported by successful registration audits at 11 of 26 (original number) locations plus Corporate Environmental Affairs staff • 12 Months from decision to proceed • 3 Months ahead of plan • To Date, all 30 M&D Locations Worldwide are on our Registration

32. Value to Our Business • Environment is Clearly Being Further Integrated -- Employees and Managers are Much More Aware of the Environmental Policy and Their Role in it • EMS is "System Dependent" rather than "Person Dependent" • It Helps Drive Continual Improvement • Customer Inquiries are Handled Efficiently • Strengthening our Record of Leadership

33. Continual Improvement Activities • Integration of functions traditionally not thought of as having a major environmental impact: • Procurement • Transporation and distribution • All on-site contractors • The list of significant aspects has been expanded and objectives and targets are being enhanced

34. Continual Improvement Activities • Off-site suppliers are being encouraged to implement and register to ISO 14001 • IBM is working with the U.S. Technical Advisory Group to TC 207 on ISO 14001 revisions • On-line environmental training is being developed for environmental professionals new to IBM

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