A Measured Approach to Going Green: IBM “Green Sigma (TM)” Consulting Offering to Help Clients Reduce Energy and Water Usage

ARMONK, NY - 18 Aug 2008: A new IBM (NYSE: IBM) consulting offering can help clients lower their environmental impact, increase efficiency and reduce costs by applying Lean Six Sigma principles to energy and water usage throughout their operations.

“There’s a fundamental truth to understanding and improving any aspect of a company’s performance – if you can’t measure it, you can’t manage it.” said Dave Lubowe, global leader of IBM’s operations strategy consulting practice. “This applies as much to a company’s energy and water consumption as it does to anything else, and our new offering can help clients apply this principle to make their businesses greener.”

IBM’s Green SigmaTM consulting offering is based on Lean Six Sigma, a business strategy for carefully analyzing operations to improve overall efficiency, lower costs, increase quality, and add, change or eliminate activities and processes to improve overall performance.

This new offering applies these principles wherever energy and water are used throughout a client’s operations -- transportation systems, datacenters and IT systems, manufacturing and distribution centers, office facilities, retail space, research and development sites, etc.

The constraints and costs of energy and water usage are rising at an accelerating rate, with a significant impact on business operations and financial performance. In addition, companies are coming under increasing pressure from governments, advocacy groups, investors, prospective employees, and consumers to make their operations, products and services more socially responsible, particularly regarding the environment.

IBM’s own conservation efforts have saved 4.6 billion kWh of electricity and $310 million in costs, and avoided over three million metric tons of CO2 emissions since 1990. The company’s work-at-home program for employees saves roughly eight million gallons of gasoline annually.

Combining IBM’s experience with energy efficiency and carbon reduction, measurement and management dashboards, Lean Six Sigma processes and corporate social responsibility consulting, Green SigmaTM allows clients to apply this strategy to their operations and environmental practices to:

Business leaders acknowledge the advantages that come from proactively addressing corporate social responsibility issues like green. An IBM global CSR survey of more than 250 c-suite executives showed that 68 percent of them already are focusing on CSR activities to create new revenue streams and 54 percent believe CSR gives them a competitive advantage. Additionally IBM’s biennial global survey of more than 1,100 CEOs showed that the majority of them plan to increase their investments in CSR by 25 percent over the next three years.

Companies can ensure they are investing in the right CSR activities and processes by using IBM’s consulting offerings like Green SigmaTM, which consists of a five-phase approach to a client’s operations and environmental practices:

For more information about CSR, you can access IBM’s global survey of more than 250 senior executives from around the world at: www.ibm.com/gbs/csrstudy. To read IBM’s CEO study, click here.

To learn more about IBM’s operations strategy consulting offerings please click here.

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