IBM Corporation 2014

SUSTAINABILITYSUSTAINABILITY&&

BUILDING A SMARTER PLANETBUILDING A SMARTER PLANET

IBM Corporation 2014

A PERSONAL JOURNEYA PERSONAL JOURNEYCHANGE STARTS WITH A SINGLE STEPCHANGE STARTS WITH A SINGLE STEP

A CALL TO ACTIONA CALL TO ACTIONWE ALL PLAY A CRITICAL ROLEWE ALL PLAY A CRITICAL ROLE

A A MANDATE FOR CHANGEMANDATE FOR CHANGE BUILDING A SMARTER PLANETBUILDING A SMARTER PLANET

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IBM Corporation 2014Melting Polar Ice Cap

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Our Fragile Aquatic Eco-System

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THE SNOWS OF KILIMANJAROTHE SNOWS OF KILIMANJARO

ARID AFRICA

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IBM Corporation 2014China Changing

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A Country Underwater

A rise in sea level would leave the city of Amsterdam and 2/3 of the

Netherlands underwater

IBM Corporation 2014Deforestation

A Delicate Balance

A Call to Action

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12

1750 1850 1950 2050

0100200300400500600700800900

1000

65M yearsago

45M yearsago

25M yearsago

Present

E-Waste

Extinction Rate

World Population Growth

Population w/o Access to Fresh Water

0

0.1

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Today 2030 2050

A Call to Action

Points of Light

Places of Opportunity

…of all the potential electricity availablein an energy source, only 30 percent

reaches consumers

…11.6 million barrels of oil is wasted each year by PC’s left on overnight

… 323,439 light bulbs equal the number of kilowatt hours wasted every minute through inefficient home energy use

“World energy demand will double by 2030”

- Mark Ellis, International Energy Agency

Power Hungry

Setting the Table

60 years ago we could create 1 calorie of food with ½ a calorie of fossil fuel.

… today it takes 10.

…30% of food purchased in developing nations goes to waste

In the U.S., a typical carrot has traveled 1,600 miles, a potato 1,200 miles, a beef roast 600 miles

…frozen food uses 10 times more energy to produce

45 percent of traffic on the busiest New York City streets is circling the block looking for parking…

Logistics & Transportation

…congested roadways cost $78 billion annually in the form of 4.2 billion wasted hours and 2.9 billion gallons of wasted gas

A CULTURE OF CONSUMPTION

Americans use 2,500,000 plastic bottles every hour, most of which are thrown away.

The average time taken by plastic bottles to decompose in a landfill is close to 700 years.

Ten percent of the plastic produced every year worldwide winds up in the ocean.

The U.S. is the #1 trash-producing country in the world at 1,609 pounds per person per year. This means that 5% of the world's people generate 40% of the world's waste.

E-WASTE

As much as 50-80% of US E-waste is exported to third world countries.

E-waste is now the largest source of lead in municipal solid waste landfills.

Global E-waste is growing by 40 million tons a year.

EPA reports show that over 112,000 computers are discarded every single day in the U.S.

In the U.S. 100 million cell phones are tossed in the trash every year.

A Thirsty PlanetIndustrial use accounts for about 22 percent of freshwater usage today

…23 million gallons of water are wasted each year by a single factory with inefficient cooling systems

In just one day, more than 200 million hours of women’s time is consumed for the most basic of human needs – collecting water for domestic use

A carbon footprint is a measure of the impact our activities have on the environment, and in particular climate change. It relates to the amount of greenhouse gases produced in our day-to-day lives through burning fossil fuels for electricity, heating and transportation etc.

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US UK Desired

C Tons/Year/Person

350

396.8

Almost everything we produce and consume has an environmental impact

Waste from landfill produces methane

Incinerated waste produces particulates

Car and Air travel produces CO2

Fossil fuel energy generation produces CO2

Nuclear energy produces radioactive waste

Poor water management increases arid areas and reduces water available to unfarmed and unpopulated areas

Through pollution and deforestation we are reducing the earth’s ability

recover

For the last 250 years we have been spending the earth’s resources

recklessly

We thought they were free

Now it is pay back time

We have to act

Our earth has an unbelievable ability to recover, if we only

give it a chance

The ability to meet current needs without hindering the ability to

meet the needs of future generations in terms of

economic, environmental

and social challenges

SUSTAINABILITY

Setting the context – Sustainability is now a Business Imperative

=

Companies are buffeted by stakeholder demands

Consumers 25% of consumers would switch brands if given an ethical alternative

Business Partners

Half of businesses are being forced to adopt ethical labor or procurement standards by their partners

CEO s Concern about environmental issues has doubled over the past four years worldwide; growing faster in Europe and Asia where numbers have tripled

Businesses are discovering that doing good earns great returns:

Attraction and loyalty of talent

Competitive differentiation

Permission to enter new markets

Minimize risk

= Sustainable growth

Business leaders are adopting a new agenda

5 out of 6 CEOs no longer agree with Nobel economist Milton Friedman’s view that the sole purpose of business is to increase profits.

IBM Corporation 2013

THE CONSUMER: INFORMED & EMPOWEREDTHE CONSUMER: INFORMED & EMPOWERED

While customer focus has shifted from the product to the full-value chain…

… businesses have not kept pace

57% of UK and 59% of US consumers say the knowledge about the contents of the food they buy has increased over the last 2 years*

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Be a positive pebble in the pond….

“YOU MUST BE THE CHANGE YOU WISH TO SEE IN THE WORLD”

Mahatma Gandhi