product stewardship energy pollution prevention …corporate environmental affairs ibm corporation...
TRANSCRIPT
Diana Lyon
Program Director
Corporate Environmental Affairs
IBM Corporation
Route 100, Building 2
Somers, NY 10589
(914) 766-2744
About this report
Welcome to IBM’s tenth annual report covering global
environmental affairs, workplace safety and employee
well-being.
We view this report as a valuable tool for maintaining a dialogue
with a variety of interested parties, including our employees,
customers, investors, neighbors and regulators. However, we
realize that we cannot address all the interests of these groups in
a single document. We produced this report in accordance with the
Public Environmental Reporting Initiative (PERI) Guidelines, which
we helped to develop. For additional information, questions or
comments on the report, please contact:
Executive responsible for this report:
Wayne S. Balta
Director, Corporate Environmental Affairs
IBM Corporation
Route 100, Building 2
Somers, NY 10589
(914) 766-2720
This report is also available on the
Internet at
http://www.ibm.com/ibm/Environment/
Chairman’s Message 1IBM & Its Technology for a Sustainable World 2IBM Performance at a Glance 4The Well-Being of People 5
Safety in the Workplace 7Corporate Policy — Employee Well-Being and Product Safety 9
Environmental Management System 10Setting the Standard: ISO 14001 11Monitoring Supplier Performance 11Investing in Environmental Protection 13
Product Stewardship 14Energy 19Pollution Prevention 20Waste Management & Conservation 22Releases 24Remediation 26Audits & Compliance 27Water Conservation 28Community & Global Solutions 29Recognition 30Corporate Policy — Environmental Affairs 32
On the cover:
A view of the Alpine Lakes Wilderness in the Central Cascades region of Washington state in the U.S., and IBM’s
new “system-on-a-chip” product. Capitalizing on its leadership in copper technology, IBM has bonded
semiconductor logic and memory onto a single chip. A silicon rectangle no larger than a thumbnail, this chip can
provide eight times the processing and up to four times the memory found on today’s typical personal computer.
For IBM, 1998 was a productive year on many fronts. It was a year in which we worked hard to carry forward our long-standing commitments tohelp protect and preserve the global environment and to be mindful of thehealth and safety of employees in our workplace.
Here is a sampling of what you can read in greater detail within this report:
● For the second year in a row, IBM was named ENERGY STAR®
Computer Partner of the Year by the U.S. Environmental ProtectionAgency. We also produced the world’s first PC system unit, theIntelliStation E Pro, to use 100 percent recycled resin for its major plastic parts.
● We became the first semiconductor manufacturer to set a specific target for reducing the emissions of perfluorocompounds, gases thought to play a role in global climate change.
● We completed the ISO 14001 Environmental Management Systemaudit process at all our manufacturing and development sites in accordancewith our single global registration under this standard. We have alsoencouraged our suppliers to consider this standard for their own operations.
● Within IBM, we set up a new, consolidated Global OccupationalHealth Services organization and management system to help us more effectively promote the well-being of employees at our sites. New initiativeswere implemented in ergonomics, transportation and life safety.
● And with e-business, the centerpiece of IBM’s strategic direction, we are enabling access to education, information, services and markets andovercoming barriers to economic development for people all over the world.
Even as we take pride in these accomplishments, we acknowledge that moreremains to be done. Companies like ours, with the necessary resources andtechnological capability, must continue to strengthen well-being in theworkplace, address our planet’s pressing environmental problems and helpthe world develop in a more sustainable manner. Through our operations,products and services, we intend to do just that.
Louis V. Gerstner Jr.Chairman and Chief Executive OfficerJuly 1999
IBM
& It
s Te
chno
logy
2
As a new century nears, balancing theneeds of people, economies and theenvironment has become of more andmore critical importance. Since manyof the solutions supporting such sus-tainable development are based uponknowledge, technology and access toinformation, IBM, as a multinationalleader in information technology andsolutions, can play a valuable role. IBMis committed to doing so, realizing thatthis benefits its own prosperity as wellas the well-being of our world.
e-businesse-business represents IBM’s overarch-ing strategy, and it’s a strategy that, increating a networked society, can be asignificant force behind sustainabledevelopment.
As IBM’s CEO, Lou Gerstner, recentlytold the U.S. Congress, “We are wit-nessing nothing less than the rise of anew economy — a digital economy —and a new global medium that will bethe single most important driver ofbusiness, economic and social changein the coming century. It will alter theway we teach our sons and daughters,care for our aged, reach out to the dis-abled and homebound, and enlightenthe isolated and disenfranchised. It cancreate new opportunities to help closethe divide that exists today between therich and the poor. And it will exert newpressures on existing geopolitical structures and all their underlying economic assumptions.”
What are these networking advance-ments that are increasingly linking ourglobal society? The infrastructure ofnetwork computing enables people touse various devices — ranging from PCsand network computers to emergingtechnologies like Web-enabled TVs,personal digital assistants, screen-phones, and smartcards — to accessapplications and data residing onservers anywhere in the world via theInternet and internal and external networks.
e-business is about how people canbenefit from network computing. Itincludes, for example, e-commerce(buying and selling over the Net);intranets that help organizations bettermanage knowledge and operations;extranets that improve organizations’relationships with suppliers, distribu-tors and partners; and the delivery ofinformation and services over the Net.
Today, e-business through networkcomputing is increasingly removing tra-ditional barriers — geographic, culturalor political — for people all over theworld to start or reinvent businesses,gain new customers and participate ineconomic development. It can open upaccess to information, global marketsand opportunities for billions of people.It can bring a host of services to peoplethe world over, including medical con-sultations from remote experts, accessto education through distance learning,agricultural advice and weather fore-casts, and access to important govern-ment and financial services.
e-business also helps businesses tomeet customers’ needs more efficiently.From enabling better analyses of cus-tomer requirements, to on-line cus-tomer care, to optimizing logistics andthe supply chain, it can reduce resourceconsumption and waste, change theeconomics of transactions and improveorganizational effectiveness.
And as this technology enables tele-working, reducing unnecessary travel,the environment again benefits. So, too,can an organization and its employees.The organization becomes more acces-sible for talent that may be constrainedfrom reaching it, and employees canenhance their work/life balances.
In short, e-business can play a vital rolein helping the world develop in a moresustainable manner. Other ways inwhich IBM’s technology, products andservices contribute toward sustainabledevelopment follow.
for a Sustainable World
As highlighted in many
of IBM’s current TV com-
mercials, e-business
can overcome barriers
that once limited oppor-
tunities, creating new
ways to expand market
access. It enables a
company to achieve a
global reach while mini-
mizing its infrastructure,
optimizing logistics
and avoiding waste. In
the example below,
e-business enables a
grandson expanding the
family’s olive oil busi-
ness to “stay local while
selling global.”
3
Reducing environmental impactIBM has a long history of commitmentto environmental protection and astrong focus on reducing the environ-mental footprint of its operations andproducts. This is demonstrated in othersections of this report. A sampling of contributions in the areas of eco-efficiency (producing more value usingless energy and materials) and the useof information technology follow here.
Eco-efficiencyRecent advancements propelling eco-efficiency have been numerous. In Mayof this year, IBM announced it set a newworld record in hard-disk data-storagedensity, writing and reading data bits sosmall that an unprecedented 20 billionof them would fit within a square inch.This is more than three times greaterthan existing products. At this density,every square inch of disk space couldhold 2,500 average-sized novels.Increasing data density can lead to diskdrives that are lighter and consume less energy. Since 1991, IBM’s data densityhas increased by more than 60 percentper year, which has reduced energyconsumption by 99 percent.
Also in May, IBM introduced its S/390G6 Parallel Enterprise Server — the firstserver to be powered by IBM’s new cop-per chip technology. The G6 takesadvantage of copper technology todeliver up to a 50 percent performanceboost over the G5 server, announcedless than a year before. The new tech-nology also allows the chip designer tofit more computer logic, or “intelli-gence,” on a chip. For customers, thatmeans systems that run cooler, fasterand provide higher performance, whileusing less energy.
The use of information technologyIt’s called “Deep Computing” — apply-ing raw computing power, advancedsoftware and sophisticated algorithms tosolve increasingly complex problems.And it’s a critical tool in analyzing manyof the environmental issues facing ustoday.
We are already seeing many benefits ofDeep Computing — from simulations ofnuclear explosions eliminating the needfor nuclear testing, to improved weatherforecasting, advancements in climatemodeling and the development of life-saving drugs. And this is only the begin-ning of what we’ll be able to achieve.
Digital solutions are also replacing theirless preferable physical alternatives,resulting in environmental benefit. Forexample, IBM’s RS/6000 SP, an updat-ed version of the chess-playing DEEPBLUE supercomputer, is being used tohelp design safer cars and aircraft, whilereducing the materials used duringdesign development. And simulatingchemical reactions in process designand optimization is reducing chemicaluse and its associated waste.
Promoting economic growthIn addition to the developmental oppor-tunities made possible by e-business,IBM’s operations themselves contributeto economies around the world. IBMemploys approximately 291,000 peoplein over 160 nations. The company indi-rectly supports the employment ofcountless others through its use ofthousands of suppliers. IBM also pro-motes economic growth throughemployee purchasing, taxes and more.
In 1998 IBM invested $5.6 billion inresearch and development. For thesixth straight year, the company wasworld leader in new patents, topping its1997 output by 40 percent and becom-ing the first company in the U.S. toachieve more than 2,000 patents issuedin a single year.
Benefiting societyOur world’s overall well-being is tightlylinked to the health and vitality of itsindividual communities. IBM has a longhistory of demonstrated commitment togood corporate citizenship at the local,national and international levels.Through its technology, monetarygrants and the efforts of its employees,IBM corporate philanthropy spans soci-etal needs in the areas of education, theenvironment, health, human services,arts and culture. In 1998 IBM provided$116 million in technology, technicalservices and cash to efforts and organi-zations dedicated to benefiting society.IBM employees also contributed nearly$44 million and 4 million hours of vol-unteer service to local causes.
One elemental imperative supportingsustainable development — education —is the centerpiece of IBM’s corporatephilanthropy. Education is vital to ahealthy community and a thrivingeconomy. From its Reach and Teachprogram to its flagship ReinventingEducation Program, IBM is providingtechnology and expertise to help designand implement new teaching methodsfor schools in Brazil, Canada, India,Ireland, Italy, Vietnam, South Africaand the U.S. Through such technolo-gies as data warehousing, knowledgemanagement and distance learning,these programs are reaching hundredsof thousands and potentially millions of elementary and secondary schoolstudents. They are extending andimproving the quality of education and enabling a new generation of children to better carry the promise of the world’s future.
4
IBM
Per
form
ance
One hundred percent of IBM’s manufac-
turing and hardware development sites
have completed the ISO 14001 audit
process and are part of IBM’s single
global registration to this standard.
Energy conservation efforts saved $16.1
million, 267 million kilowatt hours of
electricity, 2.92 million gallons of fuel
and avoided 188,000 tons of CO2
emissions in 1998.
IBM’s U.S. injury and illness incidence
rate decreased 11.8 percent from 1997
to 1998, remaining significantly lower
than the industry average. IBM’s
lost-time injury rates outside the
U.S. continued to be lower than their
respective peer industry rates.
Hazardous waste generation worldwide
increased by 7,000 metric tons, or
13 percent in 1998, though it decreased
by 5 percent relative to greater produc-
tion volumes. Of the hazardous waste
generated in 1998, 82 percent was
recycled.
Worldwide chemical releases and
transfers off-site for treatment and
disposal decreased 6.2 percent in
1998 despite a continued increase in
production.
Worldwide plants, labs and administra-
tive facilities recycled 74 percent of
nonhazardous waste in 1998.
IBM reduced the percentage of product-
related scrap landfilled by its Materials
Recovery Centers by 10.6 percent versus
1997. Less than 4.3 percent was sent by
IBM to landfills in 1998.
at a Glance
Silicon germanium — SiGe for short —
is a new material used in making microchips
that will result in less expensive, high
performance communications tools with
advanced features and functionality
well-beyond today’s technology.
This exceptionally high speed, innovative
chip technology requires dramatically less
power than conventional silicon chips, and it
will soon make today’s compact, high-
performance consumer electronics even
smaller. It will enable products to provide
more sophisticated functions while using
less materials. And thanks to SiGe, in the
future, power-packed devices will be more
portable with longer-lived batteries requiring
recharging less often. Think of it as more zip
per chip.
5
The GOHS team consists of occupational health
physicians and nurses, ergonomists, and safety
and industrial hygiene professionals.
The IBM commitment to the environ-ment has an inward as well as an out-ward focus. Through safety programsand ergonomic task forces, wellnessactivities and health-related programs,IBM is dedicated to the well-being ofits people and the safety of its work-places wherever it does business.
IBM’s corporate policy on EmployeeWell-Being and Product Safety appearson page 9. The management systemsupporting this policy includes corpo-rate instructions on IBM GlobalOccupational Health Services (GOHS),safety and environmental affairsrequirements for joint business ven-tures, and safety and health considera-tions in relationships with suppliersand contractors.
The company’s well-being goals weregiven new impetus in January 1999,when IBM’s well-being mission, whichincludes occupational health, safety,individual hygiene and ergonomics, was consolidated into a single GlobalOccupational Health Services organiza-tion. Its objective is to provide animproved interface and integrated support to all IBM organizations worldwide.
In its drive for continual improvement,IBM has implemented a new Well-Being Management System (WBMS).This system provides the framework forIBM to effectively plan, communicateand implement new or existing health,safety and wellness programs and ser-vices, then review, verify and report ontheir effectiveness. In this undertaking,employee well-being is recognized as afundamental value that is critical toIBM’s continued business success.
The
Global Occupational
Health Services (GOHS)
provides support for
the following services
and programs:
● Emergency Services
● Clinical Preventive
Services
● Health Promotion
● Worksite Evaluations
● Disability Risk
Management
● Training & Education
● Regulatory Compliance
of People
wel
l-bei
ng
6
are to increase employee health andwell-being, reduce health care costs,improve quality and maintain employeetrust and confidentiality. As ofDecember 1998, 73 percent of partici-pants had improved their knowledge ofdiabetes, 63 percent were better able tomanage the condition, and 31 percentlost fewer days from work. A similarprogram is being planned for asthma.
The 1998 Cardiovascular HealthPromotion and Screening Program pro-vided IBM employees with a broadarray of education and services relatedto cardiovascular health and preven-tion. Seventy-four programs conductedthroughout the U.S. provided immedi-ate risk assessments based on both self-reported and measured values.
Data collected anonymously from theprograms brought some interestingpoints to light. First, in this self-selectedpopulation, there was a high prevalenceof cardiovascular risk (65 percent hadone or more risk factors) and second,many were unaware of their risk. Theseresults confirmed the value of cardio-vascular health for well-being programsin the U.S.
ErgonomicsErgonomics is the study of personsinteracting with an engineered environ-ment. Applied principles of ergonomicsresult in improved employee comfort,efficiency and productivity, and reducedcosts of doing business.
A new ergonomics initiative focuses onmobile workers (about 60,000 in IBM),office workers and manufacturing oper-ations in developing countries. Theobjectives are to increase ergonomicawareness and comfort in working envi-ronments and to supply key supportpersonnel with information and toolsneeded to integrate ergonomic solutionsinto relevant design and engineeringactivities.
Ergonomic information was posted onthe GOHS Web site. Web trafficincreased from 500 hits per month toover 17,000 hits in the two weeks afteremployees in the U.S. were informed of its availability. Employees in IBMCanada expressed a similar interest.Ergonomic information will also bemade available on Web pages in Asia-Pacific, Latin America and Europe.
Special needsIBM has published a new CorporateInstruction for designing products,applications and technology that areaccessible to people with disabilities—now representing more than 10 percentof the world’s population. The instruc-tion provides direction to all IBM oper-ating organizations and subsidiariesabout features, functions and controlsthat must be designed into IBM hard-ware and software products, Internetweb pages and product documentation.
Everyone can access the ergonomics information found in IBM’s award-winning Healthy Computing
web site http://www.pc.ibm.com/healthycomputing which integrates text, graphics and animation
to offer a comprehensive source of information on topics ranging from the proper physical setup of
a workstation to mobile computing and telecommuting.
The Well-Beingof People
(continued)
Accent on informationIn addition to organizational and systemchanges, new ways of presentingrequired and useful information wereintroduced in 1998.
❦ After converting four milliondocuments from paper to electronicimages, an electronic medical folder isnow in use at all IBM U.S. sites. Thefolder makes records more accessible toIBM physicians nationwide to improvecollaborative decision-making.
❦ Two safety workbooks wereupdated in 1998. One covers theresponsibilities of IBM managers toprovide a safe and healthful workplace,to provide safety and health training,and to report work-related injuries. Theother provides safety information forrepresentatives who service IBM andother equipment manufacturers’ hard-ware throughout the world.
New health programs In partnership with Intracorp, IBM hasdesigned and implemented a pilot dia-betes disease management program forthe IBM employees with this conditionwho are enrolled in the IBM Self-Managed Health Care Plan. The goals
Technology for special needsThree new products demonstrate the IBM commitment to special needs:
❦ A Web browser for blind people, the IBM Home Page Reader, uses IBM ViaVoice Out Loud to provide synthesis without the need for a hardware synthesizer. The device can orally communicate Webinformation back to a user exactly as it is presented on the computer. The Home Pager Reader also has anintegrated electronic mail feature called the Home Page Mailer so that users who are blind can easily usethis for e-mail.
❦ In conjunction with Arkenstone, an IBM business partner, a new product has been made available for people with reading challenges. The product reads electronic text aloud so that people withdyslexia or reading impairments can take advantage of both auditory and visual information to better comprehend the material.
❦ A new IBM Self Voicing Kit is making Java applications accessible to millions of disabled people.The kit allows developers to add, expand or customize a range of accessibility features to applications,including an audio user interface that speaks the information aloud in the Java application.
7
Note:
These are the
rates for total
work-related
injury/illness
cases reported
under the U.S.
Occupational
Safety and Health
Act (OSHA). In
addition to lost-
time cases, they
include cases that
required medical
treatment.
afet
y in the Workplace
s IBM’s safety record continues to be oneof the best in the industry. Its 1998 U.S.OSHA injury/illness rate declined 11.8percent from 1997. This rate reductioncontinues a three-year trend in decreas-ing injury/illness incidents.
Reductions in 1998 include a 9 percentdecrease in time away from work, a 17percent decrease in restricted workactivity, and a 10 percent decrease inmedical treatment rates. However, thelost workday rate increased by 2 per-cent, reversing a four-year trend, andmeriting continued focus on initiativesto assist line management.
There were also reductions in the fre-quency and severity of lifting and mate-rials handling cases at some sites.Overall, IBM U.S. achieved a 24 per-cent reduction in lifting type cases anda 21 percent reduction in the work dayslost due to lifting accidents. Repetitivetrauma disorders increased in 1998, asdid tool and equipment-related inci-dents. Sites are assessing these to betterfocus on this problem.
IBM’s safety programs outside the U.S.experienced similar results and con-tinue their leading ways, as seen in the
table on page 8. IBM’s operations inseveral countries achieved substantiallylower injury/illness case rates in 1998versus 1997, and all have case rates sig-nificantly lower than those of theirpeers where peer data are available.
Workers’ compensationIn many countries, IBM employees whoare injured in the workplace are eligiblefor workers’ compensation benefits.When an injury or illness occurs, theobjectives are threefold: to help restorethe employee’s health as soon as possi-ble, to prevent further occurrence, andto support the injured employee finan-cially during time off from work.
Early reporting is critical in this regard.All cases are reported electronicallywithin 24 hours to the insurance car-rier, and in 1998, refinements to theprocess improved both the quality andusefulness of the data.
IBM workers’ compensation perfor-mance measures in the U.S. continue toimprove. The rate per 100 employeesdropped from 2.75 in 1997 to 2.32 in1998. Total costs decreased 18 percentfrom 1997 to 1998, with per capitacosts declining over 10 percent.
Life safetyIBM’s Global Life Safety Standard pro-vides a building design standard forIBM locations worldwide. Based on theU.S. National Fire Protection LifeSafety Code, IBM adopted its standardin response to its increasing growth andconstruction in developing countrieswhere life safety design regulationsvary. It provides a uniform level of fireprotection in IBM-occupied spaceworldwide. The standard also includesa life safety design and review processthat requires a “certificate of occu-pancy” inspection by GOHS profession-als prior to building occupancy for newconstruction or major renovation.
8
4
6
2
U.S. Work-Related Injury/IllnessRate ComparisonsRate per 100 Employees
Total U.S. Industry
Computer Equipment &Electronic Components Industry
IBM Manufacturing,Development & Research
OSHA
Rat
e
94 95 96
1.34
7.1
4.0
97 98
1.52
Note:
Countries shown represent the majority of IBM’s manufacturing operations. The injury rates assume an average of 2,000 hours
worked per employee per year. The UK data pertains only to injuries with 3 or more days lost time. Because of the differences in
governmental reporting requirements, a direct comparison between countries is not appropriate. The peer industry rate is an
estimate of the average rate for companies doing a type of work similar to that done by IBM in that country. Some country numbers
have been updated from prior years.
8
Safety in theWorkplace
(continued)
Lost-time Injury/Illness Case Rate Per 100 Employees
N/A = Not Available 1994 1995 1996 1997 1998
Brazil IBM 0.02 0.19 0.23 0.16 0.02
Available Peer Industry 0.92 1.12 0.45 N/A N/A
Canada IBM 0.42 0.10 0.13 0.11 0.06
Available Peer Industry 1.18 1.19 0.66 0.49 0.71
France IBM 0.43 0.45 0.45 0.45 0.36
Available Peer Industry 0.88 0.90 0.90 0.92 0.93
Germany IBM 0.48 0.59 0.29 0.31 0.37
Available Peer Industry 3.60 N/A N/A N/A N/A
Italy IBM 0.40 0.46 0.44 0.51 0.44
Available Peer Industry N/A N/A N/A N/A N/A
Japan IBM 0.02 0.01 0.02 0.00 0.02
Available Peer Industry 0.06 0.08 0.07 0.07 0.09
UK IBM 0.11 0.10 0.10 0.07 0.07
Available Peer Industry 0.60 0.50 0.56 0.58 N/A
US IBM 0.97 0.99 0.90 0.80 0.34
Available Peer Industry 2.10 2.10 1.85 1.90 N/A
Training was developed and conductedon a global basis to ensure a life safetycode skill base for GOHS professionals.
Transportation safetyIn addition to employee safety on thejob, the focus is also on safety in travel-ing to and from the job. IBM has estab-lished new requirements for a GlobalTransportation Safety Program. Theinitiative applies to bus and van ser-vices contracted by IBM for the pur-pose of transporting IBM employeesand other authorized users between anIBM location and their residences. Theprogram sets minimum safety require-ments and was established to achievean adequate level of protection for allpassengers of transportation services.
Emergency responseTo ensure the safety of its people andthe protection of its assets, IBM main-tains emergency response programs forits sites. Plans—which are reviewedannually—include safe evacuation inthe event of fire, chemical releases,natural disasters and other emergen-cies. Response teams are trained in res-cue and control operations and oftenwork with local community emergencyservice organizations.
A grass fire at the IBM Almaden site in California burned approximately 150 acres of land. It activated IBM’scrisis management team and provideda successful test for the Almaden emergency action plan. And at IBM’splant in Guadalajara, Mexico, doublingthe size of its operations in one yearhas not diverted focus from emergencyplanning. A new crisis managementteam has been formed and is conduct-ing emergency response drills.
Clean roomsAs noted in last year’s report, questionshave been raised about possibleadverse health effects associated withchemicals in semiconductor and diskdrive clean rooms. Lawsuits have beenfiled by current and former IBMemployees and others from some sitesin the northeastern U.S. and Californiaagainst chemical suppliers and, insome cases, IBM. While IBM sympa-thizes with anyone who develops aserious medical problem and addressesquestions like these very seriously, thecompany believes these lawsuits arewithout merit.
IBM is always concerned about main-taining safe and healthful conditions inits facilities. Reviews of operations are
routinely conducted on a periodicbasis. These reviews show that the useof chemicals in clean rooms and otherareas is being properly managed, andthat employees are well-informed aboutthe substances present and requisitesafety procedures.
Recognition and awardsIBM was one of four national winnersof the 1998 Corporate HealthAchievement Awards sponsored by TheAmerican College of Occupational andEnvironmental Medicine. “IBM recog-nizes that its most important resourceis the employee,” said Dr. Charles M.Yarborough, who served as a judge. Hepraised the company for its “consistenttheme of quality, improvement andcorrective action.”
Other awards in the U.S. included theEmployer Recognition Award from theAmerican Board for OccupationalHealth Nurses for IBM’s “varied andsustained support of credentialing inoccupational health nursing” and theOutstanding Employer of the YearAward from the National Business andDisability Council for improvingemployment opportunities for individu-als with disabilities.
Empl
oyee
Wel
l-Bei
ng a
ndPr
oduc
t Saf
ety
CorporatePolicy
9
IBM has a long-standing tradition ofexcellence in employee well-being andproduct safety. The importance we placeon these efforts is the result of our com-mitment to the well-being of ouremployees, customers and the commu-nities in which we operate. Like quality,employee well-being and product safetyis a fundamental component, a value inour company’s strategic vision and criti-cal to our continued success.
Thousands of injuries have been pre-vented and several hundred million dol-lars saved worldwide through theexcellence of our efforts in these areas.Our product safety efforts have gener-ated enormous dividends through cus-tomer confidence in the safety of ourproducts. And our support for improvedhealth through prevention is vital to ourinnovation, productivity and employeemorale.
Corporate strategies, instructions andprocedures in employee well-being andproduct safety must support this IBMstrategic company value and ensure wecontinue to:
❦ Provide a safe and healthfulworkplace based on prevention of acci-dents and injuries
❦ Incorporate employee well-being and product safety requirements instrategies and plans
❦ Provide adequate training toemployees to ensure they understandand can perform their jobs safely
❦ Foster employee involvementin workplace safety and a healthylifestyle
❦ Perform rigorous audits andself-assessments of our compliance withemployee and product safety require-ments
❦ Provide adequate resources tofulfill the objectives of this Policy.
From the North Carolina Departmentof Labor and the Safety and HealthCouncil of North Carolina, IBMCharlotte received the One MillionHour Award for no cases of injury or ill-ness involving days away from work forthat period, as well as the FourteenthConsecutive Year Award for havingboth no fatalities and an incidence rateat least 50 percent below the statewiderate for comparable industry.
In the United Kingdom, IBM’s labora-tory at Hursley received the Health AtWork Award from the HealthEducation Authority for being “at theleading edge of workplace health.”Hursley’s well-being team also receivedthe Good Health Is Good BusinessAward from the Health and SafetyExecutive for mental health initiatives.
In Singapore, IBM’s Storage SystemsDivision received the Noise ControlAward from the Ministry of Manpowerfor “outstanding achievement in noisecontrol at the workplace.”
The American College of Occupational and Environmental Medicine
(ACOEM) named IBM one of four national winners in its 1998 Corporate
Health Achievement Awards (CHAA) competition. ACOEM examiners
cited IBM’s positive measurable results and commented favorably on
the comprehensiveness and integration of IBM’s internal programs
overall. IBM also won praise on its newly designed optical medical
record management system, which guards the security of employee
medical records and protects them from potential misuse.
At the award ceremony above are Dr. William Wanago, MD, ACOEM;
Dr. Charles Yarborough, MD, ACOEM; Dr. Martin Sepulveda,
IBM Vice President of Global Occupational Health Services; and
Barbara Hill, formerly IBM Manager of Global Safety and Health.
10
IBM’s businessIBM creates, develops and manufac-tures advanced information technolo-gies, including computer and net-working systems, software, storagedevices and microelectronics. Theseadvanced technologies are translatedinto value for its customers throughIBM’s professional solutions and ser-vices businesses worldwide. The data inthis report cover the operations at 33IBM manufacturing, hardware develop-ment and research sites in 16 countries.A list of these sites, together with othercompany information, appears on theinside back cover. Unless otherwisenoted, IBM’s major office and adminis-trative facilities around the world arecovered in most of the data.
Potential environmental impactsIBM operations could potentiallyimpact the environment in a number ofways. Chemicals needed in research,development and manufacturingprocesses must be properly used, treat-ed and disposed of. Materials of variouskinds are used, some processes arewater- and energy-intensive, and prod-ucts must be designed so that they canbe reused, recycled or disposed of prop-erly at the end of their useful lives.
IBM’s global environmentalmanagement systemFor more than 25 years IBM has main-tained a strong worldwide environmen-tal management system. It is anessential element of the company’sefforts to achieve results consistent withenvironmental leadership.
A team from IBM Spain won
a 1998 IBM Environmental
Affairs Excellence Award for
their innovative use of IBM
technology and expertise to
support environmental
management. They devel-
oped two programs — the
first is a Lotus Notes-based
software tool for ISO 14001
implementation, which is
now being integrated into a
new quality management
tool by an external software
company. The second is a
planning project and educa-
tional CD-ROM to promote
environmental management
on the Island of Menorca, a
UNESCO biospheric reserve.
Corporate policy andinstructionsIBM’s environmental affairs policy,which is set forth on page 32, is thestrategic framework for the company’senvironmental affairs objectives, includ-ing health and safety, environmentalprotection, energy conservation andenvironmentally conscious products.This policy is supported by corporateinstructions that govern IBM’s world-wide operations and are fundamental toits environmental management andsafety programs. The instructions coversuch areas as incident prevention andreporting, management and disposal ofhazardous wastes, safety and industrialhygiene programs, environmental evaluation of suppliers, energy efficiency, environmentally consciousproducts, and environmental impactassessments for real estate transactions.
Responsibilities and integrationIBM’s corporate environmental affairsstaff is responsible for establishing aworldwide environmental affairs strat-egy and tracking its implementation.
IBM’s environmental affairs programsare implemented by professionals atmanufacturing, development andresearch sites worldwide. Local perfor-mance is overseen by staff at the head-quarters of IBM’s major geographicorganizations.
11
Setting the standard:ISO 14001In December 1997 IBM established anew global standard for leadershipunder ISO 14001 by receiving the first edition of a single worldwide ISO 14001 registration covering itsmanufacturing, product design andhardware development operations acrossall of its business units worldwide.
The first edition of this registration,which was awarded by Bureau VeritasQuality International (BVQI), encom-passed ISO 14001 audits of IBM’sworldwide environmental managementsystem (EMS) at the corporate environ-mental affairs staff and at 11 of IBM’s28 plant sites involved in the manufac-ture and development of microelectron-ics technology, data storage systems,personal systems, servers and network-ing hardware. All other plant sites proceeded through the audit process in1998. Two new locations, in Irelandand Thailand, were added to the singlecertificate in 1999.
The ISO 14001 EnvironmentalManagement System standard is a vol-untary international standard issued inSeptember 1996. It identifies those ele-ments of an EMS necessary for an orga-nization to effectively manage itsimpact on the environment. The stan-dard’s ultimate objective is to integratethe EMS with overall business manage-ment processes so that environmentalconsiderations become a standard partof business decisions.
IBM executives are responsible for theenvironmental and safety performanceof their organizations. All employees arerequired to comply with environmentallaws as well as IBM’s own environmen-tal, health and safety programs as setforth in the company’s BusinessConduct Guidelines.
Within its operating units, IBM employ-ees serve as environmental affairs focalpoints to ensure that their organizationscoordinate with other functions oninterrelated activities affecting environ-mental programs and issues.
Environmental programs and perfor-mance are reviewed by the IBM Boardof Directors committee responsible forcorporate governance.
The IBM EnvironmentalMaster Plan (EMP)Submitted annually by all IBM manu-facturing, development and researchsites, the EMP is IBM’s internal tracking and measurement system. The plan measures environmentalaffairs performance in such areas aschemical emissions and uses, effluents,waste management, recycling and conservation.
As part of IBM’s country annual envi-ronmental reports (CAER), other IBMlocations such as office buildings anddistribution centers report their environmental data.
The EMP and CAER provide the dataused in this report as well as the peri-odic updates on programs and perfor-mance that go to IBM’s chief executiveofficer, the board of directors and itsdesignated board committee. Businessunits also use them to analyze their per-formance and identify areas forimprovement.
IBM earned the unique single world-wide ISO 14001 registration because ofits longstanding global environmentalmanagement system, which is applica-ble to all of its worldwide manufactur-ing and development operations. Thissystem fosters common solutions,worldwide consistency and continualimprovement, resulting in a more effective and efficient EMS. And thesingle registration ensures IBM exe-cutes the same EMS no matter where inthe world it does business.
Monitoring supplier performanceIBM is committed to doing businesswith environmentally responsible com-panies when it contracts for suppliesand services. Corporate instructionsprevent the transfer of responsibility forenvironmentally sensitive operations tocompanies lacking either the capabilityor commitment to manage them properly.
IBM has tens of thousands of supplyagreements around the world with sup-pliers, vendors and subcontractors. Thework covered under these agreementsincludes everything from off-the-shelfcommodities and consulting services toequipment maintenance and manufac-turing and assembly operations. By contract, these suppliers are required to comply with all applicable laws and regulations in performing their work for IBM.
In addition, through substantive envi-ronmental evaluations, IBM also focus-es on environmental responsibility for a certain subset of its suppliers.Although it is neither appropriate norfeasible for IBM to evaluate all of itsthousands of suppliers worldwide, thecompany does so for certain produc-tion-related suppliers, based upon thedegree of environmental risk inherent
Managem
ent System
11
in their operations for IBM and theextent to which their work is unique toIBM. The objective of these evaluationsis to assess whether the suppliers have areasonably good focus on environmen-tal management, including complyingwith laws and regulations and soundmanagement practices.
IBM evaluates all of its hazardous wastedisposal vendors, their facilities and disposal methods prior to approvingthem for use—except in those few coun-tries where the government designatesthe approved supplier of such services.Vendors are periodically evaluated toverify that their environmental opera-tions remain satisfactory. So are IBM’s product disposal vendors, even thoughthe company does much of this activityin-house.
Any relevant concern that may ariseduring evaluations is addressed with thesupplier or vendor and must be resolvedto IBM’s satisfaction. IBM’s compliancewith these evaluation programs is partof the comprehensive audit programdiscussed on page 27.
As part of IBM’s ISO 14001 leadership,the company encourages its suppliers topursue ISO 14001 registration. A copyof IBM’s letter to suppliers regardingISO 14001 may be found at www-1.ibm.com/procurement/html/supplier.html
Expertise and appropriate technologyare shared by IBM with many of its sup-pliers. This practice not only ensuresthat products are produced in an envi-ronmentally responsible manner butalso assists suppliers in improving theirown environmental performance. Someexamples:
In Thailand, IBM has worked withSAHA Union, a supplier of assemblycomponents, to improve its environ-mental performance in the area ofchemical controls by evaluation andtraining assistance. As a result, SAHAUnion achieved ISO 14001 registrationin September 1998. The supplier hasworked with IBM Fujisawa in Japan topromote the reuse of packaging mate-rial by components suppliers inThailand and has also implemented thereuse of parts supply trays for eightkinds of mechanical parts.
In Sweden, IBM Nordic has been shar-ing information on ISO 14001 withDFDS, its transportation partner for allgoods in the area. DFDS received ISO14001 certification earlier this year.
EnvironmentalManagement System
(continued)
12
A team from IBM Burlington, in
Vermont, received a 1998 IBM
Environmental Affairs Excellence
Award for their innovative concept to
recover and recycle the lead-tin alloy
that was wasted during semiconduc-
tor manufacturing. The team
developed a new way to recover
lead-tin overspray from equipment
shields for recycling and reuse. In
one year, the new technique elimi-
nated 8,000 gallons of lead-contain-
ing acid waste stream and the
follow-on lead-containing rinse
water, enabled the recycling of
43,700 pounds of lead tin and saved
$265,000 in operational costs. In
addition, the reduced equipment
downtime increased yield, enabling
$3.4 million of potential additional
revenue.
In China, IBM has provided ShenzhenKaifa Technology Co., Ltd., a supplierof hard disk drive sub-assemblies, withgeneral training on environment andchemical controls. Information on ISO 14001 was also provided. Thissupplier is now in the process of implementing ISO 14001.
In a somewhat different kind of effort,IBM San Jose in California participatesin the Santa Clara Valley Transporta-tion Authority’s (VTA’s) Eco PassProgram, an effort to reduce mobilesource air pollution. Because of itshigh-volume purchase, IBM has anagreement with the VTA to obtainthese bus and light rail passes at areduced rate. IBM has been able toinclude the nearly 2,000 vendoremployees located on its premises inthe program. IBM’s shuttle servicepicks up IBMers and vendor employeesat transit stops and drops them off attheir buildings. In 1998, IBM partici-pation in the Eco Pass Programincreased by more than 35 percent, significantly contributing to regionalefforts to improve air quality.
Environmental Capital & Expense ($M)
1994 1995 1996 1997 1998
Capital 16 14 31 40 64
Expense 130 102 95 95 101
Total 146 116 126 135 165
13
Investing inenvironmental protectionOver the past five years, IBM has spentapproximately $165 million in capitaland $523 million in operating expenseat its plants and laboratories in order tobuild and upgrade its infrastructure forenvironmental protection and to man-age its worldwide environmental andremediation programs. IBM believesthat its focus on pollution preventionand design for the environment alsomakes good business sense.
IBM has compared its environmentalexpenses to estimated savings resultingfrom its pursuit of environmental lead-ership. Expenses include such items aspersonnel, waste treatment and dispos-al, laboratory testing, water and waste-water management, remediation,groundwater protection and other envi-ronmental system operations. Savingsresult from such items as chemical useand waste reductions; material, waterand energy conservation; recycling;reusable packaging initiatives andprocess improvements from pollutionprevention. Ongoing savings from theinitiatives of prior years are not carriedover in this comparison.
IBM also saves money by avoiding vari-ous costs likely to occur were it not forthe company’s environmental manage-ment system. Though not measurablein the same way that expenses and theaforementioned savings are, IBM doessave money by avoiding such costs andhas made a reasonable attempt toquantify them.
1998 Environmental Savings & Cost Avoidance
$M
Site Pollution Prevention & Operations $ 41.9
On-site Recycling 35.3
Packaging 1.6
Energy Conservation & Cost Avoidance 35.7
Superfund & Site Remediation Efficiencies 12.0
Insurance Savings* 8.0
Spill Remediation Cost Avoidance** 25.0
Compliance Cost Avoidance** 54.0
Total Savings/Cost Avoidance $213.5
Note:
* Savings achieved through use of RCRA financial
assurance in lieu of environmental impairment
insurance.
** These savings are estimates based upon assumptions.
The figure for spill remediation cost avoidance is
estimated from IBM’s actual experience with
remediation costs. Compliance cost avoidance includes
consideration of penalties, legal fees and business
interruption that are avoided. A figure for penalties
and legal fees was estimated from an analysis of 1998
U.S. EPA data. An estimate for business interruption
was based upon the potential impact of a plant shutdown.
Estimated Environmental Expenses & Savings Worldwide
1998 Environmental Expenses$M
Personnel $ 36.9
Consultant Fees 3.7
Laboratory Fees 3.9
Permit Fees 1.1
Waste Treatment & Disposal 20.5
Water & Wastewater Management Operations 15.7
Air Emission Control Operations 3.3
Groundwater Protection Operations 1.7
Other Environmental Systems Operations 2.6
Waste & Materials Recycling 3.5
Superfund & Former IBM Site Remediation 5.0
Miscellaneous/Other 3.1
Total Environmental Expenses $101.0
14
product StewardshipCenter of competenceIBM’s ECP program is supported by itsEngineering Center for EnvironmentallyConscious Products (ECECP) in IBM’sfacility at Research Triangle Park,North Carolina. The ECECP is a centerof competence for DfE activities and aresource for division environmentalspecialists, product development andprocurement engineers, suppliers andproduct recycling centers.
During 1998, the ECECP focused onfacilitating the integration of recycledresins in IBM products. The Centerworked with IBM procurement, productdevelopment and manufacturing organi-zations to qualify and release over 40plastic part applications for fabricationin recycled resins for business PCs,servers and storage systems products.
The Center also directed developmentand testing activities for two new soft-ware tools to support design for envi-ronment evaluation, tracking andreporting. A new worldwide Lotus Notesapplication for Product EnvironmentalProfiles (PEP) creates a common corpo-rate database for the documentation ofproduct environmental attributes. Forinstance, regulated components such asbatteries are identified and may belocated within the product with import-ed photographic images. This informa-tion facilitates product end-of-lifemanagement, ensuring the proper dis-posal of regulated components.
The PEP process is an important element of IBM’s environmental management system (EMS). By inte-grating the PEP procedure into theproduct development process, IBM canuse the PEP system to monitor and doc-ument the environmental characteristicsof products. The PEP system also pro-vides a tool for measuring ECP programprogress as part of the EMS, as well as a means of evaluating IBM productsfor compliance with environmentalstandards worldwide and legal and regulatory requirements.
IBM’s Environmentally ConsciousProducts (ECP) program was estab-lished in 1991. It has pioneered pace-setting practices in design for the environment (DfE), product recyclingtechnologies and product environ-mental metrics. The program’s fiveobjectives are:
❦ Develop products with consideration for their upgradability to extend product life.
❦ Develop products with consideration for their reuse and recyclability at the end of product life.
❦ Develop products that cansafely be disposed of at the end of product life.
❦ Develop and manufactureproducts that use recycled materialswhere they are technically and econom-ically justifiable.
❦ Develop products that willprovide improvements in energy effi-ciency and/or reduced consumption ofenergy.
ECP requirements are incorporatedinto IBM’s Integrated ProductDevelopment (IPD) process. The IPDprocess is a strategic tool used by prod-uct and process development engineers, among others, to ensure an efficient,end-to-end process for designing IBM products.
A team at IBM’s Yamato
facility in Japan won a 1998
IBM Environmental Affairs
Excellence Award for their
system approach in reduc-
ing the power consumption
of IBM’s ThinkPad 770.
Their innovations resulted
in a power consumption
requirement for the
ThinkPad of 12 watts, a
2-watt reduction from the
ThinkPad 760CD, in spite
of a significant increase in
functionality and the size
of the ThinkPad 770’s
display. The increased
energy efficiency and the
resultant prolonged battery
life are key requirements
for notebook computers.
The innovations were also
included in the ThinkPad
560X, and contributed
significantly to both
ThinkPads receiving
battery life awards from
PC Magazine.
15
The second software tool on which theCenter collaborated is a commerciallyavailable life cycle assessment/DfE toolfor the electronics industry calledEnvironmental Information and Man-agement Explorer.™ This tool and itsassociated database, co-funded byindustry partners, Ecobilan, Inc. andthe French Ministry for the Environ-ment, is internationally recognized as astate-of-the-art design aid for Life CycleAssessment and DfE evaluations ofelectronic products.
Program metricsLast year, IBM’s corporate ECP pro-gram again measured its progressagainst goals and targets established atthe beginning of 1998. Program metricscontinued the corporate focus on land-fill reduction, recycled plastics usage,product energy efficiency, and thedevelopment and integration of DfEassessments in the IBM product designprocess.
In 1998, IBM further reduced theamount of waste materials sent to land-fills from its Materials Recovery Centers. The company reduced the percentage of materials landfilled to 4.3percent of the total materials processedby the Centers. This represents a 10.6percent reduction over 1997, whichexceeded IBM’s 10 percent reductiontarget.
The total volume of recycled plasticresins used in IBM products in 1998was 267,000 pounds versus a corporatetarget of 944,000 pounds. The use ofrecycled resins was hampered by twofactors — a move to ABS resin for costand performance advantages in manyapplications, and a lack of commerciallyavailable recycled grades of ABS.However, by year end, all of the majorplastic parts of IBM’s 6893IntelliStation E Pro system unit wereconverted from virgin plastic to 100
percent recycled content PC/ABS. Thesuccessful conversion of 3.5 pounds ofprime plastic to 100 percent recycledresin per unit of this high volumeproduct has launched many new partapplications which will drive aggressivegrowth in the use of recycled plastics inmany product lines in 1999.
To track its progress in DfE, IBM devel-oped and implemented a productassessment and rating tool for its oper-ating units. Product developers canincorporate key environmental attri-butes, then track implementationprogress. The rating scheme, applicableto all IBM hardware products, can beused as a self-assessment tool in theearly stages of product development oras a final product rating to use for com-parison with predecessor or follow-onproducts.
Individual product areas track andreport on IBM’s target to decrease theenergy consumption of its products perunit of useful work or storage versuspredecessor products. All of IBM’sproduct lines continued to showprogress in energy efficiency in 1998.
Product design for added customer valueWhile environmental improvements inproducts provide benefits to everyone,more often than not, they provide additional value to our customers. Thefollowing paragraphs describe some ofthe key environmental design initiativesin IBM and how these initiatives saveour customers money and improve theperformance, quality and durability ofour products.
Product energy efficiencyPerhaps the largest customer benefitfrom IBM’s environmental design ini-tiatives comes from the decreased oper-ating costs associated with the use ofmore energy-efficient equipment. In
Energy Use Comparison ofRS/6000 Products*
Relative Performance**
5.3 6.
0 8.2
●
Typical PowerConsumptionPer Unit/RelativePerformance***
10.5
24.6Workstations/Servers
Midrange Servers●
● Enterprise Servers
97 98 97 98 97 98
44.7
4W
34.7
5W26
.19W
23.5
8W20
.83W
46.0
83.6
6W
Note:
* Power consumption may vary depending on
configuration and application of a given
RS/6000 total solution. For installation plan-
ning, consult the RS/6000 Site and Hardware
Planning and Information Manual.
** Relative performance is an estimate of com-
mercial processing performance derived from
an IBM analytical model. The model simulates
some of the system’s operations such as CPU,
cache and memory. However, the model does
not simulate disk or network I/O operations.
The model uses general database and operat-
ing system parameters but does not reflect
specific databases, AIX versions or releases.
Unless otherwise noted, the model assumes
the use of 32-bit applications. An IBM
RS/6000 Model 250 is the base line reference
system with a value of 1.0.
*** The Typical Power Consumption per
Unit/Relative Performance is a relative sys-
tem/watts performance ratio used in RS/6000
computing environments. Typical power con-
sumption is calculated to be a percentage of
the maximum measured power consumption.
16
Product Stewardship
(continued)
provide a higher quality, more durablefinish which wears better in the cus-tomer’s environment.
To achieve desired colors and textureson plastic parts, IBM uses molded-intextures and colors whenever possible.Once again, this provides a moredurable finish for the customer, whileeliminating the environmental burdensassociated with painting plastic parts.All of the plastic parts of the IBM 4694Retail Store Terminal and the IBM4610 Retail System Printer use molded-in texture and color to achieve theirdesired look. This environmentallypreferable finish is also used for highvolume business PC families like the6862 desktop and 6892 tower IBM PC300-PL and the 6265, 6275, and 6285IBM PC 300-GL models.
Product upgradabilityWhile product upgradability providesenvironmental benefits by reducing theneed to discard older machines andbuild new products, it also provides agreat benefit to customers who want topreserve their investments in existingproducts while upgrading the product’sperformance. IBM strives to provideupgrade options for products wheneverpossible. Personal computers areequipped with extra bays and expansioncard slots to allow upgrades. Addi-tionally, many components, such asmicroprocessors and hard disk drivesare designed for replacement when new,higher performance components areavailable.
Perhaps the ultimate example of prod-uct upgradability is the IBM Infoprint4000 printer line. With more than 20product upgrade offerings over the lasteight years, a customer who bought anIBM 3900 Model 001 printer in 1991could have upgraded that printer to theperformance of today’s fastest Infoprint4000 printer, increasing the speed from229 to 1002 images per minute, andenhancing print quality.
addition to saving customers money,energy efficient products also decreasethe environmental impact associatedwith the generation of electricity.
In the personal computer, monitor andprinter areas, IBM has been a leader inproducing energy efficient products andactively participates in the U.S.Environmental Protection Agency’sENERGY STAR® program. According to the EPA, the per-unit operating costsof ENERGY STAR office systems —computer, monitor, printer, fax, copierand scanner — are, on average, approxi-mately half those of conventional office equipment. IBM ships ENERGY STARcompliant products all around theworld, and has actively supported effortsto expand acceptance and recognition ofthe ENERGY STAR label worldwide.
However, IBM doesn’t restrict its focuson energy efficiency to the personalcomputers covered by the ENERGYSTAR program. IBM has also increasedenergy efficiency in its high-end serversand storage products. For example,though energy consumption can varydepending upon configuration andapplication, upgrading a System 390/9021 711 produced in 1993 to the newS/390 9672 system would not onlyreduce required floor space from 310square meters to 2 square meters, butcould also save the customer more than$200,000 per year in operating costsdue to the system’s increased energyefficiency, decreased heat generationand reduced cooling requirements.
Improved product finishesCustomers also receive benefits fromimproved, more environmentally prefer-able finishes on IBM products. Forexample, IBM’s Networking HardwareDivision uses powder coating processesfor the decorative metal parts of theIBM 2210, 2212, and 2216 router prod-ucts. In addition to reducing paint over-spray and eliminating solvent andaqueous paints from the finishingprocess, powder coating processes also
Environmental ImprovementsIBM Travelstar Disk Drives
Perc
ent
Weight Per Gigabyte
80
40
60
20
100
2LP 4LP 4GT 6GT 10GT3LP
2LP (1995)10GT (1998)
●
Power Per Gigabyte
80
40
60
20
100
2LP 4LP 4GT 6GT 10GT3LP
Perc
ent
Model
Model
17More information about IBM’s environmentally conscious products program and the environmental
attributes of IBM products may be found under the ECP section of the IBM and the Environment
corporate home page at www.ibm.com/ibm/Environment/
IBM was named U.S. EPA
ENERGY STAR® Computer
Partner of the Year for the
second consecutive year.
Product materials reductionsDesign efforts to reduce the amounts ofmaterials used in products also benefitcustomers looking for lighter and small-er products. This is particularly impor-tant in mobile products like IBM’sThinkPad computers. Good examplesof increasing product performancewhile reducing weight are the IBMTravelstar disk drives. Since 1995, theweight per gigabyte of drive capacity forthe Travelstar drives has decreased by nearly 90 percent. IBM Travelstar disk drives are used in approximately 95percent of IBM ThinkPad models aswell as more than 40 percent of allnotebook computers sold in the worldtoday.
Saving on suppliesThe cost of supplies like paper, toner,print cartridges, and storage media canadd significantly to the total cost ofoperating a system. Environmental initiatives aimed at reducing the usage and disposal of supplies can benefitcustomers by reducing operating cost.For example, IBM’s Infoprint 40 print-er, as well as all of IBM’s other networkprinters, contains the “Toner Miser”feature. When utilizing this feature,toner usage can be reduced by up to 40 percent with only a small impact onprint quality. Additionally, all of IBM’snetwork printers, along with theInfoprint 3000 and 4000 printers, haveduplex printing capability, allowing cus-tomers to save money and benefit theenvironment by reducing paper usage.
IBM’s IntelliStation E Pro
is the world’s first PC
system unit to use 100
percent recycled resin for
all of its major plastic
parts.
RecognitionFor the second year in a row, IBM wasnamed the U.S. EPA’s ENERGY STAR®
Computer Partner of the Year for itsleadership in developing energy-effi-cient products and technologies. In1998, IBM’s ENERGY STAR-compli-ant computing products included 100 percent of its monitor lines, 98 percentof Aptiva models, 100 percent of itsmobile PCs and more than 95 percentof its business PCs.
Other 1998 awards included theElectronic Industries Alliance (EIA)Special Recognition Award for out-standing achievement in the develop-ment of its ECP program and theassociated waste and emissions reduc-tions, and the Edison Award forEnvironmental Achievement, spon-sored by the American MarketingAssociation, for the IBM AS/400eSeries.
Additionally, IBM received the 1998Recycler of the Year award from thePlastics Recycling Division of theSociety of Plastics Engineers. The com-pany was cited for its “pioneeringachievements, technical initiatives andcommitment to investment in advanc-ing environmental design and plasticsrecycling in the InformationTechnology field.”
In Japan, the IBM PC710 personalcomputer received an EnergyConservation Prize in a program spon-sored by the Energy ConservationCenter of the Ministry of InternationalTrade and Industry (MITI). The awardis given for superior energy conserva-tion in appliances and systems rangingfrom air conditioners and refrigeratorsto washing machines and PCs.
18
Product Stewardship
(continued)
6
2
4
8
IBM Materials RecoveryCenters' Annual LandfillReduction Performance
95 96 97 98
Perc
ent L
andf
illed
Percent Landfilled
Amount Processed(10K Metric Tons)
●
●
96-97(3)
Base
line
82-84(3)
87-88(3)
90-94(9)
Perc
ent i
mpr
ovem
ent i
n av
erag
e Df
E ra
ting
Trend Analysis: IBM Designfor the EnvironmentDfE analysis for a sampling ofproducts, vintage 1982 to 1997,during their disassembly atIBM's Materials Recovery Centerin Endicott, NY
13
37
42
Number ( ) and yearof manufacture for products analyzedin this study
Product End-of-Life ManagementAs part of its Product End-of-LifeManagement (PELM) activities, IBMbegan offering product takeback pro-grams in 1989 in Europe and continuesto expand and enhance these offerings.Currently there are 14 such programsin the U.S., Europe, South Africa andAsia. There are 9 major MaterialsRecovery Centers around the world,with additional locations supportingparts return and regional collection. In1998, more than 54,000 metric tons ofmanufacturing scrap, IBM-owned end-of-life machines and customer-returnedequipment were processed throughthese operations. Of this amount, lessthan 4.3 percent was sent by IBM tolandfills.
Dismantling and recycling expertise isshared among these centers in order toincrease recycling efficiencies andreduce the amount of waste sent tolandfills. The centers also share theirexperiences, recommendations andconcerns with IBM product develop-ment teams to ensure that issues affect-ing the end-of-life management ofproducts are addressed early in thedesign phase of new products. Forexample, in 1998 the IBM MaterialsRecovery Center at Endicott, New York,performed evaluations to rate theimplementation of DfE attributes inIBM end-of-life PCs ranging in vintagefrom 1982 to 1997. The study showedthat steady progress was made in over-all DfE implementation for PCs overthis period. Trends in data regardingspecific attributes served as indicatorsfor design improvements.
To better coordinate and manage prod-uct end-of-life management activities,IBM established a new Global AssetRecovery Services (GARS) organiza-tion. The GARS organization provides asingle, global focus for the development
and management of all returns process-es and related information systems,including remanufacturing, refurbish-ment, and demanufacturing, whichincludes dismantling, recovery, recy-cling and scrap operations. Throughthe GARS organization, IBM expects toreap further efficiencies in managingthe end-of-life process and its inventoryof used and surplus computer parts.
Packaging programs In 1990, IBM’s Worldwide Distributionorganization developed EnvironmentalPackaging Guidelines. Updated periodi-cally, they serve as a reference andworking tool for IBM packaging engi-neers, designers and suppliers whenevaluating packaging material and dis-tribution process alternatives for IBMproducts, parts and supplies in order tominimize any environmental impact.
The Guidelines provide direction for:
❦ eliminating ozone-depletingexpansion agents and heavy metals;
❦ excluding polybrominatedbiphenyls (PBBs) and polybrominatedbiphenyl oxides (PBBOs) from all IBMpackaging materials;
❦ minimizing toxic elements inpackaging materials and the by-prod-ucts of their manufacture;
❦ identifying methods, processes, programs and packagedesigns to reduce the volume in thesolid waste stream;
❦ promoting the use of packag-ing materials that are reusable, recy-clable and/or contain recycled content.
19
IBM Electricity Use and CO2 Emission Data
Electric Use CO2 (est)Million kWhrs Tons (000)
1994 6,068 5,475
1995 6,412 4,437
1996 6,187 4,280
1997 5,820 4,031
1998 5,898 4,085Note:
1. The above figures include estimates for
portions of IBM’s office space that are leased.
2. CO2 emissions are calculated for all energy
use including electricity, fuel oil and natural gas.
IBM Energy Conservation and Avoided CO2 Emissions
Cumulative CumulativeElectric Savings Avoided CO2
Million kWhrs Tons (000)
1994 716 541
1995 770 556
1996 793 545
1997 912 559
1998 1,079 607Note:
The above annual figures represent results
from each year’s new conservation program,
plus results from programs of previous years
(which are discounted by 25% per year).
Savings prior to 1993 are not included.
by the World Wildlife Fund at its countdown to the millennium celebration event.
IBM joined ClimateWise, a partnershipprogram between the U.S. Departmentof Energy, the U. S. EPA and industryin 1996. This program promotes energyefficiency and challenges businesses to find creative ways for reducing greenhouse gas emissions. IBM’sClimateWise action plan includes energy efficiency, pollution preventionand other environmental initiatives.
IBM’s programs in energy managementdate back to 1974, when a formal policywas issued calling for the conservationof energy and materials in the designand manufacture of IBM products.
Objectives and examplesThe objectives of IBM’s energy programare to achieve and sustain progress in:
❦ Improving the environment inwhich we live by maintaining our lead-ership in energy conservation.
❦ Reducing costs and increasingcompetitiveness and shareholder valuethrough gains in energy efficiency.
Over the years, the cost and use ofenergy at IBM worldwide facilities havebeen significantly reduced through:conservation efforts involving manufac-turing process changes and facilityinfrastructure, such as lighting, high-efficiency motors, variable-frequencydrives, and HVAC controls; the use offree cooling and the reduction of reheatenergy; cost-avoidance actions reducingenergy rates through peak-demandshaving, utility rate negotiations and thepurchase of higher-voltage electricity;and operational efficiencies achieved byconsolidating space and operations.
Corporate goal and resultsIBM’s corporate conservation goal is toachieve annual energy conservationsavings equivalent to 4 percent of thecompany’s annual fuel and electricityuse. In 1998, energy conservationefforts reduced electricity use by 267million kilowatt hours, and fuel use bythe equivalent of 2.92 million gallons ofoil. These savings represent about 4.52percent of total energy use in 1998—upfrom 3.87 percent in 1997.
A key element of IBM’s energy conser-vation objective is to minimize carbondioxide emissions through burning lessfuel and using less electricity. In 1998,
energyIBM efforts in this area avoided emis-sions worldwide of more than 188,000tons of CO2 and other combustion-related gases.
In 1998, IBM saved $35.9 million dueto energy conservation and cost avoid-ance efforts, up substantially from$27.1 million in 1997. Progress inmeeting energy conservation targets atIBM’s plants and laboratories is mea-sured quarterly and reported to sitelocation executives. Energy is also amajor aspect of IBM’s EnvironmentalManagement System, and energyprogress and programs are part of itsISO 14001 audits.
IBM’s electricity use in 1998 wasapproximately 5,898 million kilowatthours, a 78-million-kilowatt-hourincrease over 1997. This was due pri-marily to production increases at twosites and expansion of operations at twoother sites outweighing the company’sconservation efforts. The 1998 usagewas a significant decrease from IBM’s1991 peak of 9,553 million kilowatthours. Estimated associated CO2 emis-sions have been reduced from 7.5 mil-lion tons in 1991 to 4.1 million tons in 1998.
Over the last 10 years, IBM has con-served an estimated 8.2 billion kilowatthours of electricity and, as a result,avoided approximately 5.66 milliontons of carbon dioxide emissions, whilesaving about $518 million in expenses.
Awards and partnershipsIBM received the 1998 Star of EnergyEfficiency Award from the Alliance toSave Energy and certificates of achieve-ment related to the ClimateWise pro-gram. The company was also one of therecipients of the EPA’s first ClimateProtection Award, for which energyconservation was a major consideration.And last August, IBM was recognizedfor its energy conservation leadership
pollu
tion
The most effective way to avoid apotential environmental problem is topinpoint it before it becomes one. Thathas been the working philosophy ofIBM’s pollution prevention programs,which came into being in 1971.
The goal: continual improvementWith an ultimate objective of zerowaste, IBM has established a pollutionprevention system that tracks the pur-suit of its goal by measuring reductionof hazardous wastes generated fromIBM manufacturing processes relativeto production volumes. This waste-to-production index involves accountingfor multiple dissimilar products. Whereappropriate, it also incorporates a mea-sure of product performance, which is akey element in a high-technologyindustry.
Though in absolute terms IBM’s totalhazardous waste increased by 7,000metric tons in 1998 compared to 1997,when indexed to production, the resultsshow that IBM produced 900 metrictons less than would be estimated fromthe increase in production. In otherwords, if hazardous waste was generatedwith production in 1998 at the 1997rate, the increase in hazardous wastewould have been 7,900 metric tons.
IBM’s pollution prevention efforts in1998 reduced its hazardous waste generation by 2,900 metric tons, or 5 percent of its total hazardous waste.The net increase of 7,000 metric tons of hazardous waste was primarily due toa 10,000 metric ton production-relatedincrease in on-site recycling at onefacility which more than offset the com-pany’s pollution prevention activities.
Environmental researchThe use of chromium-based cleaningchemistry in dynamic random accessmemory (DRAM) manufacturing isbecoming a thing of the past, thanks toan innovation of IBM Research and theMicroelectronics Division. The newenvironmentally preferable chemistrywill also result in increased yields, higher performance and enhancedproduct reliability. It is being trans-ferred to IBM manufacturing sitesworldwide where DRAM manufactur-ing takes place.
IBM Research is also looking at newmaterials and processes to address envi-ronmental concerns in the manufactureof printed wiring boards and also to provide enhanced performance andlower costs. Initiatives include new resinsystems, microwave curing, and newconducting adhesives as alternatives tolead-based solder.
Reducing perchloroethylene (perc)IBM has placed a strong emphasis oneliminating perc. At IBM’s site in EastFishkill, N.Y., more than a year of labo-ratory effort was required to developand qualify a new aqueous cleaningprocess in the manufacture of multilay-er ceramic substrates. The new technol-ogy eliminates perc in the screening andmask-cleaning processes carried out inmore than 30 IBM-designed tools. Thenew technology uses a dilute solution oftetramethylammonium hydroxide(TMAH), which is then treated after use.While toxic, TMAH is preferable to percbecause it is not a hazardous air pollu-
Evaluating environmental impactA central element of IBM’s pollutionprevention program is the Environ-mental Impact Assessment (EIA), a procedure that documents the environ-mental consequence of a manufacturingprocess. EIAs assess material, chemicaland energy use, emissions to air, wastegeneration, and discharges to water in amanufacturing process. This decision-making tool helps to identify and evalu-ate any adverse environmental effectsthat may arise from IBM manufacturingas a process evolves. Potential conse-quences for the environment are alsoevaluated within IBM’s product designprocess.
As manufacturing processes mature,any substantial change requires anEnvironmental Impact Assessment inorder to ensure that such a change doesnot introduce adverse environmentaleffects. In turn, this increases share-holder value by reducing costs and regulatory compliance efforts whileavoiding potential liability.
Although its manufacturing processesmerit particular attention in pollutionprevention, IBM also works to minimizeany indirect pollution and environmen-tal impact from its other activities. Oneway the company does this is throughthe purchase and use of goods withrecycled content.
20
A team from IBM Burlington, in Vermont, developed a process that replaces hexafluoro-
ethane (C2F6) with a novel mixture of dilute nitrogen trifluoride (NF3) in helium in semicon-
ductor manufacturing’s chemical vapor deposition (CVD) cleaning process. C2F6 is a
perfluorocompound (PFC) with a high global warming potential and long atmospheric life.
This significant initiative, which won the team an IBM Environmental Affairs Excellence
Award, reduces the PFC emissions from the CVD process by more than 95 percent, and
makes a major contribution to IBM’s voluntary goal to reduce PFC emissions 40 percent by
year-end 2002, indexed to production against a base year of 1995.
21
Moving people and products Reducing the transportation requiredby its employees and products isanother way in which IBM is workingto prevent pollution. Carpooling,telecommuting and satellite office programs are examples of this world-wide effort.
IBM’s Thomas J. Watson ResearchCenter in Yorktown, N.Y., became thefirst industrial facility in the U.S. toparticipate in a public/private partner-ship for electric-powered commuting.Beginning in 1997, IBM employees atthe California sites of Almaden, SanJose and Santa Teresa were providedEcopasses for free use of public trans-portation. In Europe, transportationinitiatives have been introduced byIBM organizations in Ireland and theUnited Kingdom.
Reductions are also being made in thetransportation associated with IBMproducts. IBM’s Worldwide Distri-bution organizations are working toincrease the overall use of networkstransporting finished goods as well asparts. The result will be fewer trucksand miles driven, resulting indecreased air emissions — and costs.
tant and has no known chronic healtheffects. The project has reduced percemissions from the East Fishkill site to-date by 86 percent. At project comple-tion, perchloroethylene is planned to becompletely eliminated from manufac-turing at East Fishkill.
A breadth of innovationsA sizable reduction in hazardous wastegeneration has resulted from IBMPoughkeepsie’s decision to sell iso-propyl alcohol to Loctite Corporation, amajor adhesives manufacturer, for usein the formulation of adhesives. Theisopropyl alcohol, which is flammablebut contains no hazardous contami-nants, is blended to Loctite specifica-tions and then transported.
IBM San Jose has introduced HFE-7100, a new, environmentally prefer-able disk lubricant carrier solvent toreplace perfluorohexane, as well as anew lube solution tank and filtrationsystem using passive emissions controltechnology.
Major energy savings are the result ofnew clean room technology implement-ed at a number of IBM manufacturinglocations, including sites in Germany,Hungary, Ireland, Singapore, Thailandand the U.S. Benefits include significantreductions in CO2 emissions andreduced operational costs.
At IBM Burlington, in Vermont, innov-ative work involving reduced chemicalusage in the tungsten wiring process
has resulted in process changes thatwill reduce site emissions of perfluoro-compounds (PFCs) by 5 percent andnitrate emissions by 14 percent. Inaddition, manufacturing costs will becut by $600,000 per year, and processcycle time by 42 percent.
Innovation is also the order of the dayat the IBM site in Yasu, Japan, where anew single-pass deposition process hasbeen implemented. The new processhas resulted in a 10 percent reductionin waste disposal and a 23 percentdecrease in chemicals included in the33/50 Toxic Release Inventory overthree years. It has also saved IBM $1.2million in expense and avoided a $7million capital investment.
In a somewhat different kind of initia-tive, IBM Research worked with IBM’sIntegrated Supply Chain team to devel-op an Asset Management Tool (AMT)to measure, analyze, and guide thereengineering of complex supplychains. To-date, AMT has beendeployed in about half of IBM’s opera-tions worldwide. By optimizing the sup-ply chain process, the tool maximizesefficiency and utilization, savesresources, avoids waste, and has savedIBM more than $100 million in 1998.IBM received the 1999 Franz EdelmanAward for Achievement in OperationsResearch and Management for theresearch and the resulting AMT.
22
80
40
60
20
95 96
100
87 94
Met
ric T
ons
x 10
00
97
228.
2
IBM Hazardous WasteQuantities Worldwide
● Closed LoopOn-site Recycling(Annual Throughput)
Off-site Recycling
Aqueous TreatmentIncinerationLandfill
●
98
●
IBM continues the management of itshazardous and nonhazardous wastefrom virtually every facility according to a waste management hierarchyrequiring, in order of preference:
❦ reduction❦ reuse❦ recycling❦ chemical or
physical treatment and❦ disposal
(only as a last resort)
Managing hazardous wasteSince 1987, IBM’s hazardous wastegeneration declined 75 percent. Duringthe past five years, total hazardouswaste generated from IBM plants andlaboratories decreased by 39 percent. Asignificant portion of the decline — 22percent — was due to the sale of someoperations. The remaining 17 percentwas the result of pollution preventioninitiatives — challenging changes inproducts and processes that drive downthe generation of hazardous waste.
Over the past decade, IBM and theelectronics industry introduced technol-ogy changes that allowed the transitionfrom hazardous solvents to nonhaz-ardous water-based cleaners. Thesewater-based cleaners and other effectivepollution-prevention projects reduceddramatically the amount of hazardouswaste produced during manufacturing.The accompanying bar chart displaysthe continual decline in hazardouswaste generation since 1987.
The chart also shows an increase inhazardous waste from 1997 to 1998. As noted in the Pollution Prevention section, the 7,000-metric-ton increasein hazardous waste in 1998 is the resultof increased use of one particular sol-vent, measured as on-site recyclingthroughput, at one manufacturing facil-ity. A large percentage of that solvent isscheduled for transition to a water-based process in 1999.
In 1998, 82 percent of IBM’s hazardouswaste was recycled; 66 percent wasrecycled on-site. This high rate of haz-ardous waste recycling is expected todecline significantly as the last high-volume hazardous solvent being recy-cled on-site is transitioned to anonhazardous cleaning solution.
Nonhazardous waste goals and performanceIn 1996 IBM established a two-tierrecycling goal based on performance atindividual sites. Locations that had for-merly recycled less than 50 percentwere still challenged with a goal of 50 percent, while sites that had met the50 percent goal were given the highertarget of 67 percent.
In 1998, 74 percent of the 184,700 metric tons of nonhazardous waste wasrecycled, with 67 percent of sites meet-ing their individual goals.
Effective January 1, 1999, nonhaz-ardous waste has been divided into twocategories: solid waste and industrialwaste, with recycling goals of 67 per-cent and 35 percent, respectively. Thenew goals separate out and put a strongfocus on the less easily disposed ofindustrial waste, which includes deion-ized water plant resin, nonhazardousbatteries and nonhazardous chemicals.
At the same time, the new goals aredesigned to sustain successful efforts insolid waste, components of whichinclude paper, cardboard, glass, metal,plastic, wood, ordinary trash and con-struction debris.
In Canada, the Platinum BusinessAward of the Recycling Council ofOntario was won by Team 14th Avenueof the IBM Markham site — the firsttime such an award has been given inthe Outstanding Business Category ofthe Ontario Waste Minimization Awardsprogram. Team 14th Avenue achieveda waste diversion rate of 96 percent.
aste
Man
agem
ent& Conservation
w
23
Conservation through reuse and recyclingWhile a major element of IBM’s pollu-tion prevention efforts are the compa-ny’s manufacturing processes, thecompany also strives to minimize anypollution associated with its other activ-ities. IBM fully realizes that indirectpollution can be prevented and marketscreated for recycled goods by reusinggoods and purchasing and using materials with recycled content.
Through its paper program, IBM placesa strong emphasis on the use of recy-cled content paper. In North America,79 percent of publications are nowprinted on recycled paper. IBM is work-ing to expand this focus worldwide.Meanwhile, in Europe, paper is pro-cured from mills that have receivedtheir ISO 14001 certification. As dis-cussed in the Product Stewardship section, IBM’s packaging programfocuses on the use of recycled contentin packaging materials. And in IBMproducts, progress is being made in the use of recycled plastics.
66
16
9
72
66 16 9
109
170
64%
111 127 135 136
170
65%
186
68%
191
71%
185
74%
27
On-siteRecycling
Off-siteRecycling
IncinerationAqueous& OtherTreatment
Landfill
Percent Reported in Each Category
IBM Hazardous Waste Management Worldwide 199856,343 Metric Tons
IBM Nonhazardous MaterialsGenerated and RecycledMetric Tons x 1,000
1994 1995 1996 1997 1998
Total Recycled
Total Generated
Recycled %
24
In manufacturing its extensive productline, IBM relies on the use of chemi-cals, some of which are on the U.S.Toxic Release Inventory (TRI) list. Themajority of the manufacturing capacityfor these products is in the U.S., andIBM produces a major portion of elec-tronic components in-house instead ofacquiring them from suppliers.
The IBM goal is continual improve-ment in this area, and the companycontinues its efforts with respect tominimizing its global TRI chemicalquantities, including releases and trans-fers off-site for treatment and disposal.
International performance measuresUnder the U.S. Superfund Amend-ments and Reauthorization Act (SARA)and the U.S. Pollution Prevention Act(PPA), companies must file an annualinventory of routine releases and off-site transfers, as well as recycling, treat-ment and energy recovery activities formore than 600 chemicals. IBM trackssuch activities worldwide, using U.S.reporting requirements as its interna-tional measure. In 1998, IBM sitesworldwide used 28 of these chemicalsin quantities greater than the reportingthreshold of 4.536 metric tons (10,000pounds).
In 1998 the total amount of releases tothe environment and waste transferredoff-site for treatment and disposal fromIBM’s operations worldwide was 1,438metric tons, which is a 6.2 percentdecrease from 1997. While a decreasecan be attributed to the sale of IBM’smanufacturing operation in Austin,Texas, real reductions in the company’salready relatively low releases to theenvironment occurred, despite contin-ued increase in both disk drive andmicroelectronics production. Mostnotably, IBM’s facility at East Fishkill,N.Y., reduced its air emissions by 15.7metric tons (30 percent) from 1997. As
a result, this facility is no longer amajor source of hazardous air pollu-tants under the U.S. Clean Air Act.
Last year, despite increases in produc-tion, the total quantities covered bySARA and PPA reported by IBM’sworldwide manufacturing operationswas 10,791 metric tons — a 22.5 per-cent reduction over 1997. Most signifi-cant was a 41.5 percent reduction inreportable quantities of perchloro-ethylene. Of the 4,690 metric tons ofperc reported in 1998, 95.1 percent wasrecycled on-site, 2.1 percent was recy-cled off-site, 2.2 percent was shippedoff-site for treatment, and 0.5 percentwas emitted to air. As with any chemi-cal replacement effort, IBM hasencountered several technical chal-lenges but is nonetheless moving welltoward its goal of being perc-free by theend of the year 2000.
In 1998 IBM reported a total amount of 1,667 metric tons of copper com-pounds, of which 99.5 percent wasrecycled. The 1,667 metric tons repre-sented a nearly 100 percent increasefrom 1997. Seventy-five percent wasnot manufacturing-related but due torecovery from returned machinesthrough the product take-back pro-gram. IBM believes that increased recy-cling from this program is beneficial tothe environment.
Climate changeIBM’s operations do not release signifi-cant quantities of gases believed tohave an effect on global climatechange. IBM’s greatest potential impactis an indirect one, through the releaseof carbon dioxide by the utility compa-nies providing the electricity used bythe company. Therefore, IBM’s mainfocus is on energy conservation.
IBM also releases some perfluorocom-pounds (PFCs) from semiconductormanufacturing, although in relatively
small amounts, in carbon equivalents,when compared to carbon dioxide emis-sions. In 1996 IBM’s MicroelectronicsDivision, along with other U.S. semi-conductor manufacturers, signed amemorandum of understanding (MOU)with the U.S. EPA focusing on volun-tary pollution prevention efforts to min-imize the emissions of six PFCs used insemiconductor manufacture.
Although only the U.S. operations ofsignatory companies are subject to thisMOU, IBM extended its voluntary PFCemission reduction commitment to itssemiconductor manufacturing opera-tions worldwide.
On October 26, 1998 IBM announced agoal of reducing PFC emissions fromsemiconductor manufacturing 40 percent worldwide by year-end 2002,indexed to production against a baseyear of 1995, thereby becoming the firstsemiconductor manufacturer to set spe-cific emissions reduction targets forPFCs. PFCs are among the chemicalswhose emissions are targeted for reduc-tion in the Kyoto Protocol on GlobalClimate Change.
Recognition of effortsIBM won one of the U.S. EPA’s firstClimate Protection Awards in recogni-tion of its industry leadership in reduc-ing PFC emissions and conservingenergy. The award cited IBM’s newprocess replacing hexafluoroethanewith dilute nitrogen trifluoride (NF3)and its PFC emissions reduction goal.
A 1998 Vermont Governor’s Award forEnvironmental Excellence in PollutionPrevention was won by IBM Burlingtonfor developing the new NF3 processnoted in the EPA Climate ProtectionAward. The new process, which alsowon an IBM Environmental ExcellenceAward, is expected to yield a majorreduction in PFC emissions.
1.0
0.5
96
1.5
94 95
Met
ric T
ons
x 10
00
97
NMP and nitrate compounds,
added to the U.S. EPA reporting
requirements in 1995
Pre-1995 reporting definition
IBM Total Worldwide Releasesto Environment andWastes Transferred Off-sitefor Treatment and Disposal(As Defined by U.S. SARA Section 313)
98
NMP and nitrate compounds,added to the U.S. EPA reportingrequirements in 1995
Pre-1995 reporting definition
20
10
15
5
96
25
95
Met
ric T
ons
x 10
00
IBM Total Chemical Quantities* Worldwide(As defined by U.S. SARA Section 313 and PPA) * Includes recycling, treatment, energy
recovery, releases and off-site transfers.
Note:Numbers reflect the delisting of acetone and non-aerosol sulfuric and hydrochloric acids. 1995–1997 numbers have been revised to reflect updated nitrate information.
30
94 97 98
IBM Chemical Quantities Worldwide(As defined by SARA Section 313 and PPA) 1998 Total Reportable Quantities
Chemical (Metric Tons)
Perchloroethylene 4,690
Copper Compounds 1,667
Xylene 826
n-methyl-2-pyrrolidone 761
Nitrate Compounds 709
All others 2,138
Total: 10,791
Note:
Numbers reflect the delisting of acetone and non-aerosol
sulfuric and hydrochloric acids. 1995–1997 numbers
have been revised to reflect updated nitrate information.
43.15
26.65
11.62
7.21
5.262.392.29
43.15
26.65
11.62
7.21
2.29
0.90
0.53
5.26
2.39On-siteRecycling
Off-siteRecycling
On-siteTreatment
Publicly OwnedTreatment Works
Off-siteTreatment
Release toWater
Release toAir
Off-siteDisposal
Off-site EnergyRecovery
Percent Reported in Each Category
IBM Total Chemical Quantities Worldwide(As Defined Under SARA Section 313 and PPA)1998 Reportable Quantities — 10,791 Metric Tons
25
r26
Even with its tradition of excellence inmanufacturing, IBM is involved, as areother major manufacturing companies,in certain remediation efforts that stemfrom past activities. Since the 1950s,pollution prevention technologies havechanged greatly, and some measuresthat had been state-of-the-art in thatera have since become outmoded orineffective. Recognizing the need forcorrective action, where necessary, and acting on that need swiftly andresponsibly has been the IBM responseto this reality.
Groundwater is a case in point. IBMhas been vigorously remediatinggroundwater contamination ever sincethe problem was discovered at the company’s Dayton, New Jersey, site in1977. Because of this, IBM voluntarilybegan monitoring groundwater at itsmanufacturing and development loca-tions around the world.
IBM has approximately 2,900 monitor-ing and 220 extraction wells worldwide.In 1998, approximately 22,300 poundsof solvents were extracted while reme-diating, controlling and containinggroundwater at 20 sites in three coun-tries. An additional 1,509 pounds ofsolvents were removed at seven of thesesites by soil vapor extraction or othermethods.
As a result of the U.S. Superfund law,IBM is also involved in cleanup opera-tions at some non-IBM sites in the U.S.to which its wastes had been sent fordisposal in the past. Even though theymay have been legally and technicallyacceptable at the time, the Superfundlaw creates a retroactive liability forpast actions and requires companieswith waste at such sites to share incleanup costs.
As of year-end 1998, IBM had receivednotification (through either Federal,State or private party) of its potentialliability at 84 sites. Of these, 51 are onthe National Priority List (NPL).
Of those 84 sites, IBM believes it hassome kind of involvement (resolved,ongoing or under investigation) at 58.The company believes that it has noresponsibility at the others. IBM alsohas ongoing responsibility for remedia-tion at seven sites that it either ownedor occupied but sold in past years.
Whenever a cleanup program becomeslikely and its costs can be reasonablyestimated, IBM accrues remediationcosts for all known environmental lia-bilities. Estimated environmental costsconnected with post-closure activities(such as the removal and restoration ofchemical storage facilities) are accruedwhen the decision is made to close afacility. As of December 31, 1998, theamount accrued was $236 million.Accrued amounts do not cover sites inpreliminary stages of investigation,where neither the extent of the cleanupnor the company’s percentage ofresponsibility has been established.
emediation
A team at IBM’s Almaden Research Center in
California developed the Chemical Kinetics
Simulator program, powerful but easy-to-use
software that allows the outcomes of reactions
to be predicted for a wide variety of chemical
systems. They developed algorithms which
enable the modeling of chemical reactions
commonly found in materials processing. The
program can enable significant contributions
to pollution prevention because computer
simulations can replace actual experiments
during process development and optimiza-
tions, minimizing chemical use and waste.
In addition to its use in IBM, 5,500 no-cost
licenses in the U.S. and 74 countries to-date
have extended its use and environmental
benefits to a broad range of industries, as well
as academic and national labs involved in
materials processing. It is also being used by
regulatory agencies, health institutes and
environmental groups for the assessment of
hazards. The team won a 1998 IBM
Environmental Affairs Excellence Award for
this program.
27
udits
& C
ompl
ianc
e
Fines and Penalties:
1994 1995 1996 1997 1998
Number 3 5 3 1 3
Fine ($K) $30.8 $2.3 $0.1 $3.5 $2.5
The balance of the incidents includedreleases of eight dilute water solutions(steam condensate, cooling tower water,nonpotable water, etc.), five releases ofchilled water and a lesser number ofreleases for acids, corrosives, solvent airemissions and other petroleum prod-ucts such as gasoline and various oils.
Of the reported releases, there werefour incidents with relatively greatestpotential environmental impact: a6,000-pound release of R22 refrigerantdue to a tube rupture; a 4,800-poundrelease of HFC 134a refrigerant, alsodue to a system tube rupture; a 300-pound air emission of perchloroethyl-ene caused by human error when apartially desorbed carbon adsorptionequipment was put back into service,and a discharge of approximately 4,000pounds of ethylene glycol to surfacewater in a storm event.
All incidents were responded topromptly and had little environmentalimpact.
Fines and penaltiesOne measure of a company’s environ-mental performance is its record forfines and penalties. In 1998, IBM paidthree fines totaling $2,450. Of thattotal, $1,500 was for a 1997 citationwhen an IBM contractor failed to pro-vide the asbestos waste disposal siteinformation on two of its notificationsfor demolition and renovation workperformed on IBM premises, $850 wasfor lack of a permit for a fuel storagetank for an office building and $100was for the discharge of rain wateraccumulated in an unused lined storagetank. During the past five years, IBM has paid 15 fines amounting to$39,185.
aThrough a comprehensive set of auditprograms, IBM measures its environ-mental performance against both external and internal requirements(such as its Corporate Instructions). Inaddition, each manufacturing and hard-ware development site undergoes anannual self-assessment, and some func-tions and operations are assessed evenmore frequently.
Every year, approximately 10 to 12facilities are also audited by CorporateInternal Audit. This comprehensive,independent audit takes from three tofour weeks and focuses on both regula-tory and internal IBM requirements inenvironmental, chemical management,and safety and industrial hygiene programs. IBM’s audit protocol alsoincludes provisions to audit its environ-mental management system consistentwith ISO 14001. Audit results are com-municated to top management, andaction plans, follow-up and account-ability are all clearly set forth.
Accidental spills and releasesThe Environmental Incident ReportingSystem (EIRS) is used by IBM sitesworldwide to report to IBM manage-ment on all accidental releases or incidents of noncompliance. Any inci-dent meeting IBM’s EnvironmentalIncident Prevention and Reporting criteria—which equal or surpass regula-tory reporting requirements—has to bereported through EIRS. In addition,each IBM location must have its owndocumented incident prevention program, including provisions for preventing environmental incidents ortheir recurrence, together with report-ing procedures.
In 1998, a total of 75 accidental releas-es was reported through EIRS. Ten ofthese were contained in secondary containment. Of the remaining 65, 16involved refrigerants, 9 involved sanitary waste and 9 involved fuel oil.
Water is a critical natural resource andits protection and conservation are anenvironmental priority for IBM. This isparticularly true where water is in limit-ed supply or operations are water-intensive. The transfer to aqueouscleaning processes implemented toeliminate the use of solvents in manu-facturing has significantly reduced pol-lution. It has, however, resulted in anincreased use of water. This, in turn,has created a sharper focus on waterconservation in IBM.
Although many IBM sites had beenmeasuring their water use for years, thecompany began tracking water con-sumption on a corporate level in 1997.Tracking includes usage from allsources of incoming water at IBMplants and laboratories—includinggroundwater, city water and well water—as well as the amount of effluent waterreused either without being treated orfollowing treatment.
In 1998, IBM plants and labs worldwideused a total of 27.6 million cubicmeters of water, of which 69 percent, orapproximately 19 million cubic meters,was related to manufacturing activities.Through use reduction, reuse and recy-cling initiatives at its plants and labs,IBM conserved 4.6 million cubic metersof virgin water that would otherwise beconsumed had IBM locations not takenaction in this regard.
Conservation in actionIBM locations worldwide contributed towater conservation. Following is a sam-pling of activities in 1998:
At the IBM San Jose site in California, atotal of 361,000 cubic meters of waterwas conserved in 1998. Primary pro-jects included new processes and toolsused in the production of computerstorage disk drives. Industrial wastewater discharge was reduced despite anincrease in the production of magneticrecording heads and computer storagedisks. San Jose has also made water usea significant aspect of its ISO 14001program. In the area of wastewater flowreduction, IBM is one of the companiesworking with the City of San Jose tolimit discharges from the area’s munici-pal wastewater treatment plant intolower San Francisco Bay by reducingtheir flows to the treatment plant.
28
Also in the U.S., IBM Burlington, inVermont, conserved 742,000 cubicmeters of water through manufacturingefficiency and improvements to thedeionized water generation system.IBM Endicott in New York conserved492,000 cubic meters of water throughusing non-contact cooling water asprocess rinse water, the use of counter-flow rinses on process lines, and theuse of conductivity sensors to controlwater usage.
At the IBM Yasu site in Japan, 984,000cubic meters of water were conservedthrough such projects as the elimina-tion of an ultra-pure deionized cleaningprocess and the reclaiming of rinsewater.
In Europe, the IBM France site atEssonnes conserved 196,000 cubicmeters of water through recycling ofeffluent from the reverse osmosisprocess, reuse of city water and reuse ofrinse water from the deionized watergeneration process.
Elsewhere, water conservation achieve-ments included the conserving of42,000 cubic meters of water at IBMBromont in Canada through recyclingof wastewater treatment plant effluent,and the conserving of 212,000 cubicmeters of water at IBM Guadalajara,Mexico, by applying used water forlandscape irrigation.
Water conservation was the objective
of the work for which a team from
IBM Yasu in Japan won a 1998 IBM
Environmental Affairs Excellence
Award. The team’s innovations at this
printed wiring board manufacturing
plant included a new dry polishing
technique, a more efficient basket
rinse technique, and a new fine
filtration system to enable additional
water recycling.
Results were significant — reducing
water discharge by 23 percent,
achieving a 40 percent water recycling
rate — best of class in IBM and the
printed wiring board industry — and
saving $2.2 million in process water
consumption over three years.
conservation
29
the World Environment Center, theConservation Fund, the World WildlifeFund, the Environmental Law Institute,the Alliance to Save Energy andResources for the Future. IBM sites and country organizations support environmental efforts in their areas.
The human dimensionIBM also continues to respond to disas-ters by providing both humanitarianand technological assistance.
In partnership with the American RedCross and CNN Interactive, IBM creat-ed a Web site for disaster relief(www.DisasterRelief.org). The site helpsdisaster victims to contact sources ofaid, delivers information to families andfriends, and alerts relief agencies tocommunities and individuals needinghelp. IBM has donated $1.5 million inhardware, software and technical ser-vices to create and operate the site.
The Web site is proving to be a valu-able source of information and aid forrefugees from Kosovo. Through thesite, the Red Cross has collected millions of dollars in direct assistance.Visitors to the site obtain extensivenews coverage and links to relief orga-nizations, including the United NationsHigh Commission for Refugees.
IBM is also helping the refugees withequipment, software and disaster exper-tise. And with the Center of Excellencein Disaster Management and Human-itarian Assistance, IBM is establishing aLotus Notes-based application that willhelp workers identify and locaterefugees, coordinate relief resourcesand enable refugees to send E-mail.
Last year, when an earthquake hit west-ern Colombia, IBM Colombia actedquickly by sending 80 tents to shelter460 people in the stricken region. Adatabase was also created for the notifi-cation of relatives and other emergencycommunications.
cThe Australian Institute of Marine
Science (AIMS) performed modeling
and visualization with three-dimen-
sional computer images to better
understand the effects of marine
pollution, dredging and over-fishing
in Australia and Southeast Asia. The
scientific knowledge gained is being
used by governments to plan reme-
dial and protective measures for
these critical marine environments.
The AIMS research was supported by
the IBM Environmental Research
Program, which awarded 14 grants
totaling $16 million to universities
and research institutions around the
world to spur the study of environ-
mental problems through computer-
based technology. Now in its sunset,
the program has enabled
researchers to address such signifi-
cant issues as water and air quality,
climate change, severe weather
forecasting, groundwater remedia-
tion, and the preservation of fragile
ecosystems and biodiversity.
For more about the IBM
Environmental Research
Program, see www.ibm.com/ibm/
environment/initiatives.
As a multinational company, IBM isconsistently mindful of the environ-mental concerns and needs of the coun-tries and communities in which itoperates. Its program of action includespreserving natural resources, supportingenvironmental causes and using itstechnology to help solve problems.
Habitat conservationIBM’s recognition of the value of con-serving habitat is reflected in its newcorporate headquarters in Armonk, N.Y.Special care was taken to have a mini-mal impact on the natural surroundingsand to preserve existing woodlands.Storm runoff from buildings and park-ing areas is directed away from the citywatershed to a series of created wet-lands. This preserves water qualitywhile providing additional habitat formany types of wildlife.
Due to these efforts and the associatedwildlife program established by IBM,the corporate headquarters site hasbeen certified as a Corporate WildlifeHabitat by the Wildlife Habitat Council.IBM’s Almaden Research Center inCalifornia was the pace-setter in IBM’sfocus on habitat, having received itscertification from the Council in 1991.Other IBM sites are currently goingthrough the process to receive theirs.
Environmental efforts on many frontsThe IBM Matching Grants Programmatched the 1998 contributions of U.S. employees to 481 environmental organizations. Some of these, such asthe Nature Conservancy, WildernessSociety, and the World Wildlife Fund,act to protect the environment on anational or international level. Othersare smaller groups preserving habitats and species in state and local communities.
IBM also works with and supports such environmental organizations as
omm
unity
& G
loba
l Sol
utio
ns
Accepting IBM Burlington’s 1998 Chairman’s Citation from
Lou Gerstner were Dr. Mike Attardo, former general manager,
Microelectronics Division (left, now retired) and Dr. John
Kelly III, current general manager, Microelectronics Division.
Kakutaro Kitashiro, general manager, IBM Japan, accepted the
1998 Chairman’s Environmental Affairs Citation for IBM Japan
Sales & Distribution from Lou Gerstner.
30
recognitionered, they developed new componentsto improve energy efficiency. The inno-vations resulted in a 12-watt powerconsumption requirement for theThinkPad 770, which is a 2-watt reduc-tion from the ThinkPad 760CD despitea significant increase in function anddisplay size. The innovations were alsoapplied to the ThinkPad 560X. Bothmachines were recognized by PCMagazine for battery efficiency and life.Four patents have been granted to ele-ments of this work.
Craig Gilmond, Jeff Kelby, John Kuttand Pat McCabe, Jr., from IBMBurlington in Vermont, shared $35,000for their innovative concept to recoverand recycle the lead-tin alloy wastedduring semiconductor manufacturing.Lead-tin deposited in wafer manufac-turing takes place in a chamber withshields that keep the overspray deposi-tion off chamber surfaces. Periodically,the lead-tin had to be chiseled off theshields, causing significant equipmentdowntime. The new technology protectsthe shields and enables the recoveryand reuse of the lead-tin deposits. In itsfirst year, 8,000 gallons of lead-contain-ing acid waste stream and the follow-onlead-containing rinse water stream wereeliminated, and 43,700 pounds of lead-tin were recycled. The process alsosaves $265,000 annually in operationalcosts while enabling $3.4 million inpotential revenue through increasedyield.
At the Almaden Research Center in SanJose, California, Frances Houle andWilliam Hinsberg shared $25,000 fortheir development of a ChemicalKinetics Simulator program. This pow-erful, flexible, easy-to-use software pre-dicts the outcomes of a wide variety ofchemical reactions commonly found inmaterials processing. The use of com-puter simulations instead of physicalexperiments during process develop-ment and optimization minimizeschemical use and waste. The program,
IBM’s commitment to environmentalleadership was in evidence again in1998. That commitment was recognizedby two types of internal awards.
Corporate Environmental AffairsExcellence AwardBegun in 1991, this program confersawards of up to $50,000 on individualsand teams of employees for innovativeaccomplishments contributing to IBM’ssafety, energy and environmental objec-tives. Since its inception, the award hasrecognized 198 employees from 7 coun-tries with $1.6 million. In 1998, the 24winners of six awards were from theUnited States, Japan and Spain.
Cynthia Hines, Ray Izor, William Miller,Jim Pinto and Tom Tamayo of IBMBurlington, in Vermont, shared a$50,000 award for developing a processthat replaces hexafluoroethane with anovel mixture of dilute nitrogen trifluo-ride in helium in semiconductor manu-facturing’s chemical vapor depositioncleaning process. The new technologyreduces perfluorocompound (PFC)emissions from the cleaning process bymore than 95 percent and advancesIBM’s drive to voluntarily reduce PFCemissions. It also avoids the $3 millionin capital and up to $4 million in annual operating expense required bythe recycling alternative. The tech-nology is being shared with other IBMsites. The team has also worked withmajor tool manufacturers to adopt thetechnology as their standard offering.
In Japan, a $50,000 award was sharedby Takahisa Amemiya, TomokiMaruichi, Shinji Ohishi, Kazuo Sekiya,Susumu Shimotohno and Keiji Suzukiof the Yamato site for their innovationsto reduce the power consumption of theThinkPad 770. The team developed asophisticated new tool for simultane-ously measuring how efficiently allcomponents of the system workedtogether. With the information gath-
Attending the 1998 Environmental Affairs Excellence Awards event were:
Chairman’s Environmental AffairsCitationTo encourage leadership and to recog-nize progress and achievement in envi-ronmental affairs, IBM established thisaward program in 1991. From a recordnumber of nominees last year, IBMBurlington and IBM Japan Sales andDistribution (S&D) emerged as winners.IBM’s Burlington plant in EssexJunction, Vermont, received the awardfor manufacturing/fabricator sites, whileIBM Japan S&D was chosen fromamong organizations and functions.
Since 1995, IBM Burlington hasachieved a 46 percent reduction inOSHA injury/illness rates over analready low rate. Hazardous waste gen-eration has been reduced by 68 percent,and air emissions by 59 percent.Approximately 90 percent ofBurlington’s hazardous waste is recy-cled, with only two percent sent to land-fill. Over the last three years, the site’s
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First Row:William Hinsberg, IBM Almaden
Research Center, CAFrances Houle, IBM Almaden Research
Center, CASusumu Shimotohno, IBM Yamato,
JapanTomoki Maruichi, IBM Yamato, JapanShigeaki Yamashita, IBM Yasu, JapanWilliam Miller, IBM Burlington, VTAna Paloma Sandin Garcia, IBM SpainToshihiro Masumoto, IBM Yasu, JapanDr. Stephen Andersen, U.S. EPA
Second Row:John Kutt, IBM Burlington, VTJeff Kelby, IBM Burlington, VTShinji Ohishi, IBM Yamato, JapanCraig Gilmond, IBM Burlington, VTKazuo Sekiya, IBM Yamato, JapanEsteban Egea Sanchez, IBM SpainMargarita Gomez Moreno, IBM SpainMeredith Whiting, The Conference BoardPaula Wolferseder, World Wildlife FundJean-Pierre Briant, IBM Corporate HQ, NYCynthia Hines, IBM Burlington, VT
energy conservation efforts have saved$4.8 million. Active in strategic, volun-tary environmental initiatives,Burlington has been recognized exter-nally with Governor’s Awards for pollu-tion prevention and by the U.S. EPA forleadership in reducing perfluorocom-pound (PFC) emissions.
The environmental management systemof IBM Japan’s S&D was cited as amodel for what can be accomplished bycountry-level organizations not involvedin manufacturing and development (M&D) operations. The organization,which has also received significantexternal recognition, has achieved a 0.3injury rate and a 74 percent rate forrecycled nonhazardous waste. Its energyconservation programs have saved 2.2percent of usage for $2.4 million overthe last three years — significantly morethan the average rate at other IBMcountry-level operations.
Third Row:Pat McCabe, Jr., IBM Burlington, VTTom Tamayo, IBM Burlington, VTRay Izor, IBM Burlington, VTAntonio Sanz Pulido, IBM SpainErik Meyers, Environmental Law InstituteMikizoh Dakeyama, IBM Yasu, JapanJack Whiting, The Conference BoardDan McDonnell, IBM Endicott, NYDr.William Sanders III, U.S. EPAWayne Balta, IBM Corporate HQ, NY
which has received three patents with afourth pending, has been distributedthrough the internet under a no-costlicense. In addition to its use in IBM,the 5,500 copies licensed in the U.S.and 74 countries to-date have extendedits use and environmental benefits to abroad range of industries, as well asacademic and national laboratoriesinvolved in materials processing.
At IBM Japan’s Yasu plant site, MikizohDakeyama, Toshihiro Masumoto andShigeaki Yamashita shared $25,000 fortheir initiative in reducing water useand improving water recycling in print-ed wiring board manufacturing. Theinnovations include a new dry polishingtechnique for leveling insulation mate-rial surfaces, a more efficient basket-rinse technique for a plating line, and anew fine filtration system to furtherrecycling. The significant results—a 23percent reduction in water dischargeand a 40 percent recycling rate—are“best of class” in both IBM and theprinted wiring board industry. In addi-tion, Yasu saved $2.2 million in watercosts over three years and avoided $18million in capital for new water supplyand treatment facilities that would havebeen required due to growth in thepanel business.
From IBM Spain/Portugal in Madrid,Esteban Egea Sanchez, MargaritaGomez Moreno, Ana Paloma SandinGarcia and Antonio Sanz Pulido shared$25,000 for their innovative use of IBMtechnology and expertise in environ-mental management. The team devel-oped two major programs. One is aLotus-Notes-based software tool for ISO 14001 implementation, which isnow being integrated into a new qualitymanagement tool by an external soft-ware company. The other is a planningproject and an educational CD-ROM topromote environmental managementon the Island of Menorca, a UNESCObiospheric reserve.
A Commitment to Leadership, Built Upon RespectIBM is committed to environmentalaffairs leadership in all of its businessactivities. IBM has had longstandingcorporate policies of providing a safeand healthful workplace, protecting theenvironment, and conserving energyand natural resources, which were formalized in 1967, 1971 and 1974respectively. They have served theenvironment and our business wellover the years and provide the founda-tion for the following corporate policyobjectives:
❦ Provide a safe and healthfulworkplace and ensure that personnelare properly trained and have appropriate safety and emergencyequipment.
❦ Be an environmentallyresponsible neighbor in the communi-ties where we operate, and act prompt-ly and responsibly to correct incidentsor conditions that endanger health,safety, or the environment. Reportthem to authorities promptly andinform affected parties as appropriate.
❦ Conserve natural resources by reusing and recycling materials,purchasing recycled materials, andusing recyclable packaging and othermaterials.
❦ Develop, manufacture, andmarket products that are safe for theirintended use, efficient in their use ofenergy, protective of the environment,and that can be reused, recycled or disposed of safely.
❦ Use development and manufacturing processes that do notadversely affect the environment,including developing and improvingoperations and technologies to mini-mize waste, prevent air, water, andother pollution, minimize health andsafety risks, and dispose of waste safely and responsibly.
Envi
ronm
enta
l Affa
irs
❦ Ensure the responsible use of energy throughout our business,including conserving energy, improvingenergy efficiency, and giving preferenceto renewable over non-renewable ener-gy sources when feasible.
❦ Participate in efforts toimprove environmental protection andunderstanding around the world andshare appropriate pollution preventiontechnology, knowledge and methods.
❦ Utilize IBM products, servicesand expertise around the world to assistin the development of solutions to envi-ronmental problems.
❦ Meet or exceed all applicablegovernment requirements and voluntaryrequirements to which IBM subscribes.Set and adhere to stringent require-ments of our own no matter where inthe world the company does business.
❦ Strive to continually improveIBM’s environmental management sys-tem and performance, and periodicallyissue progress reports to the generalpublic.
❦ Conduct rigorous audits andself-assessments of IBM’s compliancewith this policy, measure progress ofIBM’s environmental affairs perfor-mance, and report periodically to theBoard of Directors.
Every employee and every contractor onIBM premises is expected to follow thispolicy and to report any environmental,health, or safety concern to IBM man-agement. Managers are expected to takeprompt action.
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CorporatePolicy
Policy last revised: July 29, 1997
Corporate Profile
Sizing Data
1994 1995 1996 1997 1998
Total Revenue ($M) $64,052 $71,940 $75,947 $78,508 $81,667
Employees 219,839 225,347 240,615 269,465 291,067
Asia/PacificFujisawa, JapanPrachinburi, ThailandSingaporeYamato, JapanYasu, JapanWangaratta, Australia
Europe/Middle East/AfricaEssonnes, FranceGreenock, Scotland, UKLaGaude, FranceMainz, GermanyMontpellier, FranceMulhuddart, IrelandSanta Palomba, ItalySzekesfehervar, HungaryVimercate, ItalyZurich, Switzerland
Joint Ventures (Majority Owned)Shenzhen, China
IBM Manufacturing, HardwareDevelopment and Research Sites
The AmericasAlmaden, CaliforniaAustin, TexasBoulder, ColoradoBromont, CanadaBurlington, VermontCharlotte, North CarolinaEast Fishkill, New YorkEndicott, New YorkGuadalajara, MexicoPoughkeepsie, New YorkResearch Triangle Park, North CarolinaRochester, MinnesotaSan Jose, CaliforniaSumare, BrazilTucson, ArizonaYorktown, New York
Note:
IBM’s site in Wangaratta, Australia,
and the electronic card assembly
operations in Charlotte, NC were sold
in 1998. Research locations that do
not use chemicals are not included in
the site listing.
More information on IBM’s
Environmental Research Program is
available at
www.ibm.com/ibm/environment/initiatives/erp.phtml
The 1998 IBM annual report may be
obtained from Chicago Trust
Company, Mail Suite 4688,
P.O. Box 2530, Jersey City, NJ
07303, or found at:
www.ibm.com/annualreport/1998
Details on executive compensation
may be found in IBM’s Report on
Executive Compensation, which is
available from the vice president of
Workforce Diversity at IBM’s office in
Armonk, New York.
IBM Geographic UnitsIBM AmericasIBM Asia PacificIBM Europe/Middle East/Africa
Research & Product Organizations
IBM ResearchPersonal Systems and Technology
Network Computer DivisionPC CompanyPersonal Systems
Server GroupAS/400RS/6000System/390
Software GroupInternet DivisionLotus Development CorporationNetworking Computing SoftwareSoftware SolutionsTivoli Systems
Technology GroupMicroelectronics DivisionNetworking Hardware DivisionPrinting Systems CompanyStorage Systems Division