IBM's requirements for suppliers to establish and maintain a corporate responsibility and environmental management system, measuring performance, setting goals, and disclosing results, are listed below:
Following this notification, IBM requires its suppliers within one year to:
- define, deploy, and sustain a corporate responsibility and environmental management system that identifies significant aspects of the supplier's intersections with these matters, including those articulated in IBM's Supplier Conduct Principles (SCP) and/or the Electronic Industry Citizenship Coalition (EICC) Code of Conduct. The supplier must be able to demonstrate that such a management system is in place and is deployed at their sites where work for IBM is performed, such that should IBM choose to conduct an audit, either by IBM or an IBM-directed third party, of a supplier's corporate social responsibility program and/or supplier's environmental program, the supplier will be able to demonstrate complete compliance to all elements of IBM's SCP and the EICC Code of Conduct;
- establish programs (within the management system) to control operations that intersect with these matters and confirm compliance with applicable law, regulation, and any particular contractual requirements;
- measure performance associated with supplier's significant environmental aspects where applicable, and include at a minimum each of the following aspects common to virtually all businesses:
- energy conservation
- scope 1 and scope 2 greenhouse gas emissions *
- waste management and recycling
- set voluntary environmental goals to achieve positive results associated with significant aspects, where applicable, and include at a minimum one in each of the three aspects cited in item 3 above;
- publicly disclose results associated with these voluntary environmental goals and other environmental aspects from the management system, including any regulatory fines or penalties that may have occurred;
- train employees who are responsible for performing this work;
- conduct self-assessments and audits as well as management reviews;
- cascade this set of requirements to the supplier's suppliers who perform work that is material to the products, parts, and/or services being supplied to IBM.
*Note: Scope 1 greenhouse gas emissions: direct emissions generated by the company. Scope 2 greenhouse gas emissions: indirect emissions that are associated with the generation of electricity that is purchased and consumed by the company.
Illustrative information about IBM's own Global Environmental Management System and environmental reporting and disclosure can be found at IBM's Global Environmental Management System and Environmental Reporting and Disclosure Web sites.
IBM reserves the right to assess the supplier's conformance to these requirements any time during the term of this purchase order. Failure to comply with all applicable requirements can ultimately result in termination.