Big Blue Goes Green

IBM Tightens Environmental Standards for Suppliers

By Jimmy Mengel
Monday, May 3rd, 2010

You're only as good as the company you keep. In that spirit, IBM is setting higher environmental standards for the companies with whom it does business.

IBM has become among the first companies to require their suppliers to start tracking and reducing their environmental impact if they want to continue doing business with the computer giant.

While many firms have jumped on the green bandwagon by building a environmentally friendly headquarters or issuing company Priuses, many have not required their suppliers to follow suit — and a business is really only as green as their suppliers. IBM green

"IBM has always expected its suppliers to operate in an environmentally responsible manner, but now we're strengthening that focus with a management system requirement," said Wayne Balta, Vice President, Corporate Environmental Affairs at IBM.

"This is not a 'one-size-fits-all' approach — we expect that each supplier will deploy a management system, measure performance, set goals and disclose results in a way that reflects their particular intersections with corporate responsibility and the environment."

Now, the measure currently lacks teeth; IBM is not setting any requirements or sustainability targets yet.

The idea is get a system in place to collect environmental performance from IBM's 28,000 suppliers, like measuring greenhouse gas emissions, energy conservation, and waste management.

Eventually, they will force suppliers to set their own goals and make their progress available to the public.

If a supplier doesn't live up to IBM's expectations, IBM will issue a warning and work with them to implement necessary changes. If they neglect to make said changes, they will be dropped.

"Ultimately, if a supplier cannot be compliant with requirements on the environment and sustainability, we'll stop doing business with them," noted John Paterson, vice president for IBM's global supply.

IBM is the latest in a string of high-profile companies who have started to shift towards sustainable suppliers. Green Chip Living has covered both Wal-Mart and Nike's sustainability announcements in the last year.

Like Wal-Mart and Nike, IBM has a checkered past when it comes to protecting the environment. In the early 80s, IBM was held responsible for a massive leak of toxic solvents — including Freon — when the company's underground storage tanks leached into San Jose's water supply.

As recently as 2004, the company came under fire for the harmful levels of trichloroethene, a suspected carcinogen, in the area around Endicott, NY, IBM's birthplace.

The pollution was severe enough that the State Department of Environmental Conservation upgraded Endicott's status from a Class 4 (meaning that pollution is no longer a threat) to a Class 2, a significant threat to both the environment and human health.

So, by making its suppliers take a sustainability pledge, IBM hopes to strengthen its environmental image and continue to maintain its profitability at the same time.

"Clearly there are financial benefits for procurement organizations around the world to choose suppliers that effectively manage their corporate and environmental responsibilities," Paterson added.

"For IBM, this helps contribute to our business success and that of our suppliers. Moreover, it's the right thing to do."

Be Well,

Jimmy


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Editor's Note: From solar and wind to geothermal and biofuels, Green Chip readers want to know which renewable energy resource will take over where fossil fuels leave off. The answer is...all of the above!

There is no one single solution to today's energy crisis. However, the combination of all viable renewable energy resources, coupled with energy efficiency, conservation and smart grid development will not only lead us to energy independence and a cleaner, more sustainable energy infrastructure — but also to what will soon prove to be the greatest investment opportunity of the 21st Century.







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