IBM is committed to doing business with environmentally responsible suppliers. Managing a supply chain with nearly 20,000 suppliers around the globe is both a business and social imperative, and it is not without its challenges. Engaging this many suppliers in environmental responsibility requires considerable resources, but IBM has embedded environmental checkpoints into every aspect of our procurement process and has done so for many years. We believe that environmental responsibility is integral to producing world-class products.
IBM continues to expand the definition and scope of a responsible supply chain. We have also engaged closely with our industry peers through the Electronic Industry Citizenship Coalition (EICC) in efforts to minimize adverse effects on the community, the environment, and the world's natural resources--while safeguarding the health and safety of the public. In 2010, we announced a major initiative to create a consolidated Social and Environmental Management System (S&EMS).
Our S&EMS requires all IBM suppliers to have a corporate responsibility and environmental management system of their own and that suppliers require the same of those upstream suppliers who perform work material to the goods and services provided to IBM. In summary, the requirements are for IBM suppliers to:
- define, deploy, and sustain a management system that addresses corporate responsibility;
- measure performance, and establish voluntary, quantifiable environmental goals;
- publicly disclose results associated with these voluntary environmental goals and other environmental aspects of their management systems;
- cascade this set of requirements to their suppliers' suppliers who perform work that is material to the products, parts, and/or services being supplied to IBM.
This is a requirement of doing or continuing to do business with IBM. Our objective is to help suppliers build/enhance their capability to manage their responsibilities effectively, systematically, and sustainability over the long-term. Being associated with socially or environmentally irresponsible suppliers creates unacceptable business risks to both the brand and the company's bottom line.