Better Health for All
10
IBM's core technology, including AI, quantum computing, data solutions, and consulting, is strategically applied to healthcare to improve patient outcomes, personalize treatment, and enhance healthcare system efficiency. The company demonstrates exceptional practices in healthcare data responsibility, including a Chief Privacy Officer
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, a privacy code of conduct
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, Controller Binding Corporate Rules approved by EU authorities since 2017
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, compliance with global privacy regulations (GDPR, CPRA, LGPD)
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, and publishing transparency reports since 2021
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. IBM provides comprehensive support for the healthcare workforce through AI and automation, aiming to improve productivity, reduce administrative tasks
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, and address the projected global shortfall of 18 million healthcare workers by 2030
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. IBM also generates significant positive health externalities through initiatives like water management, sanitation infrastructure
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, and an AI tool for extreme heat prediction
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. The company demonstrates industry-leading transparency in data practices, including AI model transparency and rigorous data governance
10
. IBM's business model does not involve revenue from products with negative health outcomes, nor does it hold healthcare-related patents, produce food/nutritional products with direct health impacts, or products with addiction potential, and its products do not have direct physical or mental safety implications.
Fair Money & Economic Opportunity
0
IBM is a technology company and does not directly offer lending, deposit, or consumer credit products. Therefore, most KPIs related to financial services, such as underserved client share, pricing fairness, exploitative fee exposure, inclusion initiatives (loan/insurance book), customer finance data accessibility, fair lending compliance, wealth building outcomes, debt burden ratio, and geographic inclusion (service points), are not applicable to its core business model and are scored at 0. IBM also follows standard profit retention policies with no specific community finance reinvestment, resulting in a 0 for profit reinvestment. While IBM partners in programs that include financial literacy and was involved in developing a digital payment solution (neoleap) with simplified onboarding, the articles do not provide specific quantitative data on the reach and outcomes of financial literacy initiatives or measure product simplicity against readability standards and disclosure transparency, leading to their omission.
1
Fair Pay & Worker Respect
0
No specific, quantifiable evidence was found in the provided articles to score any of the KPIs for Fair Pay & Worker Respect. While articles mention various lawsuits and accusations against IBM, such as a federal judge refusing to dismiss a lawsuit alleging termination of a white male consultant to meet diversity goals, and another lawsuit claiming illegal racial and sex discrimination, these are not yet substantiated violations.
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,
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Accusations of wage theft by denying overtime pay were also noted.
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Past substantiated issues, including a 2021 settlement for $350,000 over pay discrimination claims
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and a 2020 EEOC conclusion of systematic age discrimination between 2013 and 2018,
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fall outside the three-year window for labor violation incidents. A 2018 court ruling in Brazil requiring IBM to recognize employees as tech workers, making them eligible for higher minimum wages and benefits, also falls outside this timeframe.
6
Information regarding the share of the global workforce paid a living wage, CEO to median employee pay ratio, percentage of employees covered by collective bargaining, safety incident rates, pay equity ratios, worker engagement scores, voluntary turnover rates, insecure contract share, or health insurance coverage was not provided in a quantifiable format suitable for scoring against the rubric.
Fair Trade & Ethical Sourcing
0
IBM actively engages in initiatives to enhance ethical sourcing and supply chain transparency. In 2019, the company co-launched the Responsible Sourcing Blockchain Network (RSBN) with partners like Ford and Volkswagen Group
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. This network utilizes blockchain technology to trace responsibly produced minerals, including cobalt, tantalum, tin, tungsten, and gold (3TG), from source to end product, aiming to enhance transparency and accountability
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. The RSBN has moved beyond pilot phases and is progressing toward operational use
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. IBM's Responsible Minerals Policy mandates its suppliers to source minerals such as 3TG, cobalt, and mica from conformant or active smelters/refiners assessed by accredited schemes
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. For five consecutive years, including 2023, IBM has achieved 100% compliance with third-party validated smelters or refiners for conflict minerals
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. Additionally, IBM collaborated on a data-driven technology platform for the UK fashion supply chain, using blockchain, AI, and sensors for track-and-trace capabilities
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. First-tier suppliers are required to maintain management systems addressing social and environmental responsibilities
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, define and deploy voluntary environmental goals
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, and are encouraged to publicly disclose their results
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.
Honest & Fair Business
-20
IBM incurred $4.75 million in ethics-related regulatory fines in 2023 for a wage and hour violation.
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The company's financial reporting included reclassifications and recasts for presentation and segment changes in 2022 and 2019, but no formal restatements due to errors in the past five years.
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For ethics complaints, feedback is provided within a timeframe not exceeding three months (90 days).
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IBM maintains a comprehensive whistleblower protection policy, including a Global Procurement Ombudsman established in 1994 with worldwide representation.
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The policy allows anonymous reporting, ensures confidentiality, and explicitly prohibits retaliation for good faith reporting.
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Concerns can be raised through multiple channels, and initial contact is generally made within 48 hours, with confirmation of receipt within seven days.
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The Ombudsman procedure is reviewed at least once a year, and employees receive annual training on Business Conduct Guidelines.
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The company also has a robust anti-corruption policy, strictly complying with the Foreign Corrupt Practices Act and global anti-bribery laws.
8
Its Business Conduct Guidelines (BCGs) are translated, distributed globally, and require 100% employee participation in annual training and certification.
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Specific approval processes are in place for amenities given to government officials, and the company extends its ethical standards to suppliers and business partners, having trained over 600 technology suppliers in ethics.
10
Kind to Animals
10
IBM demonstrates commitment to animal welfare through several conservation initiatives. The company collaborates with WWF-Germany to develop an AI solution for monitoring and conserving critically endangered African forest elephants, aiming to enhance tracking, identification, and population estimates, and protect migration corridors.
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These elephants, whose populations have decreased by over 80%, also contribute significantly to carbon sequestration, with a single elephant increasing carbon capture by almost 250 acres.
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IBM has also established a global program of 70 pollinator gardens at 54 locations across 26 countries, covering approximately 735,300 square feet by the end of 2023, to support biodiversity.
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Four IBM sites, including its Corporate Headquarters, have maintained Wildlife Habitat Council Conservation Certification for over 18 years for wildlife habitat management and conservation education programs.
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Furthermore, IBM's predictive analytics software assists Marwell Wildlife in conserving endangered Grevy's zebra, and the company collaborated on an IoT solution in 2017 to protect rhinos from poaching threats in South Africa.
5
No War, No Weapons
-50
IBM develops and sells dual-use technologies, including an "IBM Defense Model" AI system built specifically for defense and national security work
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, designed to understand military terminology and operational tactics.
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Its hybrid cloud platform is also used by government and corporate entities in critical infrastructure.
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In 1996, IBM sold 17 high-speed computers to a Russian nuclear weapons lab, a country of security or proliferation concern
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, for which its Russian subsidiary pled guilty, was fined $8.6 million
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, and placed on probation for two years.
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Despite developing AI for defense, the company's public statements on AI safeguards refer to general built-in governance and security, without specific ethical guidelines or oversight for military applications. IBM requires all in-scope suppliers to use 100% conformant or active Responsible Minerals Assurance Process (RMAP) or equivalent programs, or 100% verified recyclers
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, and provides annual Conflict Minerals Reports from 2013 through 2024.
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Its Responsible Minerals policy addresses the US Dodd-Frank Act
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and is anchored in the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas
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, and is conformant with the Responsible Business Alliance Code of Conduct.
11
Planet-Friendly Business
-10
IBM's total Scope 1, 2, and 3 greenhouse gas emissions were 3,002,000 tCO2e in 2024.
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Operational GHG emissions (Scope 1 and 2) decreased from 364,000 tCO2e in 2023 to 265,000 tCO2e in 2024.
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In 2024, 79.6% of the company's total electricity consumption was sourced from renewables.
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IBM achieved a waste diversion rate of 94.4% from landfill or incineration in 2024.
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By year-end 2023, 98% of key logistics, airline, hotel, production, and technology product suppliers had set GHG emissions reduction goals aligned with UN IPCC scientific recommendations.
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IBM aims to achieve net-zero operational greenhouse gas emissions by 2030, with interim goals including a 65% reduction by 2025 compared to 2010 levels
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and procuring 75% of electricity from renewable sources by 2025, increasing to 90% by 2030.
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Respect for Cultures & Communities
0
In 2005, IBM's Genographic Project faced opposition from Indigenous groups who criticized it for collecting genetic material without proper consent
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, potentially violating Indigenous rights and cultural values
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. In 2023, IBM Research developed large language models for Brazilian Indigenous languages to support their preservation and revitalization
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.
Safe & Smart Tech
20
IBM demonstrates a strong commitment to Safe & Smart Tech, particularly in AI ethics and digital rights advocacy. The company has an IBM Responsible Technology Board, active for five years, guiding ethical AI development through Principles of Trust and Transparency and Five Pillars (Explainability, Fairness, Robustness, Transparency, Privacy).
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IBM is recognized as a Leader in Unified AI Governance by IDC MarketScape
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and for AI Governance Solutions by Forrester (Q3 2025).
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IBM will also initiate an ISO 42001 compliance audit in 2025 for its AI management system.
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IBM maintains comprehensive privacy certifications, complying with and certified to the EU-US, UK Extension, and Swiss-US Data Privacy Framework Principles for numerous Cloud Services,
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and participates in TRUSTe's APEC Cross Border Privacy Rules Certification.
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Its regulatory compliance program is very strong, preparing for an ISO 42001 audit for its AI management system.
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For AI auditing, IBM partners with Cisco to deploy AI Defense
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and HiddenLayer for two-week advanced red teaming sprints on select Granite models, screening against adversarial attacks.
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IBM has also sunset its general purpose facial recognition products
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and offers watsonx.governance to prevent algorithmic harms.
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IBM has been named a Leader in Gartner® Magic Quadrant™ for Access Management for three consecutive years,
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indicating excellent authentication security.
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The company operates an excellent bug bounty program for IBM Granite with a $100K commitment for payouts in the first year,
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and allows vulnerability reporting via HackerOne for its products and websites.
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IBM also has a centralized Product Security Incident Response Team (PSIRT)
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and Secure Engineering practices for timely vulnerability management.
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IBM exhibits industry leadership in digital rights, co-creating Data Provenance Standards,
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contributing to Partnership on AI reports,
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co-authoring policy roadmaps,
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and launching the AI Alliance with Meta and over 50 members.
21
IBM also pledges not to provide government access to client data for surveillance.
22
Zero Waste & Sustainable Products
0
IBM achieved a 99.2% waste diversion rate for end-of-life products in 2024, with 96% resold, reused, or recycled, and 3.2% sent to waste-to-energy processes.
1
The company's products have an overall recyclability rate of 97%, with a specific IBM Power Server 9105 42A assessed at 97.4% recyclability in 2023.
2
IBM's Design for the Environment program, established in 1989, integrates reusability and emphasizes creating durable, repairable, and recyclable products.
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The company has implemented several waste reduction initiatives, including a Pollution Prevention Program since 1971
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, Global Asset Recovery Services (GARS) for asset remarketing and refurbishment
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, and the development of VolCat technology for PET plastic recycling.
6
In 2024, IBM recycled 40.7% of its hazardous waste by weight
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and eliminated Class I and II ozone-depleting chemicals from its processes and products in the 1990s.
8
IBM has set company-wide waste reduction targets, including diverting 90% or more of nonhazardous waste by 2025
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, ensuring product waste sent to landfills or incineration does not exceed 3% by weight
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, and eliminating nonessential single-use plastics from IBM-managed cafeterias globally by 2025.
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As of 2024, 55 of 58 IBM-managed cafeterias have removed nonessential single-use plastic items.
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IBM also has a corporate-wide requirement for environmental evaluations of its Product End-of-Life Management (PELM) suppliers, conducted every three years since 1991.
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