IBM's Environmental Management System- ISO 14001

NC DPPEA Workshop

August 24, 1999

IBM's Business

• Develop, Manufacture and Sell Information Technology Products, Including Computers and Microelectronic Technology, Software, and Networking Systems and Information Technology-Related Services Worldwide.

IBM’s Business (Cont.)

• IBM Product Units – Server Group– AS 400; RS 6000; System 390– Personal Systems Group – Printing Systems Company– IBM Microelectronics Division– Networking Hardware Division– Storage Systems Division– Retail Store Solutions– Display Business Unit IBM Product Units

RTA's Manufacturing and Development Mission

• Manufacture/assembly of computer and networking hardware products

• Computer refurbishing operations

• Hardware/software development activities

• Human Resources for US

• Customer call centers for software/hardware support

IBM's EMS

• IBM has one EMS with a tiered approach

Corporate

Locations and/or Division Operating Units

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IBM's EMS

• Corporate's Role– Set environmental policy

– Develop IBM WW environmental strategy

– Define requirements of IBM's EMS

– Establish environmental Corporate Instructions and Environmental Practices

– Set Corporate level environmental objectives and targets

IBM's EMS

• Corporate's Role (cont.)– Provide guidance to locations and/or

– Division/Operating Units

– Measure environmental performance

– Perform environmental affairs audits at locations

– Review status of environmental affairs with top management

– Communicate environmental affairs progress to interested parties

IBM's EMS

• Location and/or Division/Operating Units' Role– Develop and implement programs to conform with

IBM's EMS

– Identify legal requirements and apply for permits

– Develop location and/or Division/Operating Unit procedures

– Monitor compliance to legal and IBM requirements

IBM's EMS

• Location and/or Division/Operating Units' Role (cont.)– Report compliance to agencies

– Perform self-assessment

– Review EMS with Location and/or Division/Operating Unit management

– Report key characteristics to Corporate

IBM's EMS Control

• Primary control point of environmental management for Locations and/or Divisions/Operating Units:– Locations control manufacturing processes,

activities, and services

– Divisions/ Operating Units control products

Core Elements of IBM's EMS

• Environmental Policy

• Corporate Instructions

• Environmental Practices

• Worldwide EMS Manual

IBM's Environmental Policy

• IBM has a single corporate-wide environmental policy, which– Commits IBM to Environmental Affairs

Leadership

– Contains 11 elements addressing a wide array of environmental concerns for IBM's business activities, products and services

– Commits to striving for continual improvement of the EMS and performance

– Requires every employee and every contactor on IBM premises to follow it

IBM's Corporate Instructions

• Applicable to all business units and locations

• Specify broad requirements on environmental subjects, such as:– energy management– hazardous materials transportation– environmentally conscious product design– supplier evaluation of environmental considerations– incident reporting– environmental impact assessment– and others

IBM's Environmental Practices

• Applicable to all business units and locations

• Specify detailed requirements for air emissions, water discharges, waste management, transfer and storage of liquids, and chemical management

IBM Worldwide EMS Manual

• Aligns IBM's existing EMS with ISO 14001

• Re-emphasizes and delineates EMS requirements for Corporate Environmental Affiars and Locations and/or Operating Units

• Used ISO 14001 as a tool to improve the effectiveness, efficiency, and consistency of IBM's EMS

Additional Core Elements at RTA

• RTA EMS Manual

• Product EMS Manuals (RSS, NHD, PSG)

• Program Manuals

• Emergency Planning Manual

Environmental Aspects

• Process– Team of environmental experts

– Criteria used for identification of significant environmental aspects

• Environmental impact of the aspect

• Legal /regulatory requirements

• IBM environmental requirements

• Good neighbor (activities and services)

• Customer views (products)

Examples of Environmental Aspects

• Activities and Services– Chemical use

– Hazardous waste generation

– Air emissions

– Waste recycling

– Hazardous materials transportation

– Energy consumption

– Groundwater/soil remediation/cleanup

Examples of Environmental Aspects

• Products– Product energy consumption

– Recyclability/reuse

– Product chemical emissions

– Recycled/recyclable materials

– Product protective packaging (shipping)

– Supplies/consumables

Significant Aspects Focused at RTA

• Product Aspects – Three product groups: Networking Hardware,

Personal Systems Group, and Retail Store Solutions

• Key Significant Aspects Related to Activities and Services– Solid waste mgmt/recycling

– Air emissions (including employee vehicle emissions)

– Energy consumption

Objectives and Targets

• Objectives and Targets established at both Corporate and Location/Division levels

• Locations/divisions may establish additional product specific targets, but must adopt Corporate's

• Primary Considerations• Legal / regulatory requirements

• IBM Corporate requirements

• Other requirements (e.g., Energy Star)

• Significant environmental aspects

• Technological options

• Financial, operational & business requirements

• Views of interested parties

IBM Corporate Objectives and Targets (Activities and Services)

• Hazardous waste reduction– Year to year overall reduction

• Energy Conservation– 4% overall consrvation savings

• Nonhazardous waste recycling– 67% solid waste– 35% industrial waste

• Perfluorocompounds Reduction – 40% reduction by YE 2002

IBM Corporate Objectives and Targets (Products)

• Energy efficiency– Energy Star

– Power consumption per unit of function

• Materials Recovery Centers landfill reduction– 10% reduction in 1999 versus 1998

• Plastics recycling– Purchase 10% recycled plastics by 2001

• Design for Environment– Assessments on at least 80% of products released in 1999

Engineering Center for ECP (RTP, NC)

• ECP design, assessment & metrics• Material selection• Plastics recycling• Regulatory tracking& interpretation• Product end-of-life management programs• Support of materials recovery, reutilization• operations• ISO14001 support• Life cycle assessment studies• Environmental packaging• ECP communications

IBM’s Registration to ISO 14001

Goal

• Achieve Single Worldwide Registration to ISO 14001 Covering IBM's Manufacturing and Hardware Development Locations Across All Business Units – Complete registration audits at 30 Locations in 14

Countries Plus Corporate Environmental Affairs

– Location populations: <1,000 to 20,000

– Business Units include Microelectronics, Storage Systems, S/390 Servers, AS/400 Servers, RS/6000 Servers, PC Servers, Personal Computers, Networking Hardware

Reasons for Goal

• It Reinforces the Integration of Environmental Considerations Throughout IBM's Business

• It Positions IBM to be Competitive

• It is Consistent with Our Quest for Environmental Leadership

• A Single Worldwide Registration is Consistent with Our Long-standing EMS and it is the Most Efficient Approach

How We Proceeded

• Completed Worldwide Gap Analysis• Published Worldwide EMS Manual Consistent

with ISO 14001• Developed Common Solutions

– Training– Identification of Significant Aspects– EMS Audit Methodology

• Retained a Single Worldwide Registrar• Transferred Existing Site Registrations

(through Surveillance) and Began Audits at New Locations

Advantages of Our Approach

• Capitalizes on IBM's Existing Global EMS• An Outstanding Way to Help Ensure We

Execute the Same EMS No Matter Where in the World We Do Business

• Consistency Yields Efficiency and Effectiveness

• Least Cost Approach– Avoids Multiple Registrations by Multiple

Registrars– Enables Ongoing Audits to Proceed According to

Sampling Plan

Challenges with Our Approach

• Significant Worldwide Coordination Required

• Would be Very Difficult to Integrate with Existing ISO 9000 Registrations

• Single Registrar Expects a Well-Structured, Mature, and Consistent EMS at all IBM Locations -- Even those that are New in the Business

Current Results

• Earned First Edition of Worldwide Registration in December, 1997– Supported by successful registration audits at 11 of

26 (original number) locations plus Corporate Environmental Affairs staff

– 12 Months from decision to proceed

– 3 Months ahead of plan

• To Date, all 30 M&D Locations Worldwide are on our Registration

Value to Our Business

• Environment is Clearly Being Further Integrated -- Employees and Managers are Much More Aware of the Environmental Policy and Their Role in it

• EMS is "System Dependent" rather than "Person Dependent"

• It Helps Drive Continual Improvement

• Customer Inquiries are Handled Efficiently

• Strengthening our Record of Leadership

Continual Improvement Activities

• Integration of functions traditionally not thought of as having a major environmental impact:– Procurement

– Transporation and distribution

– All on-site contractors

• The list of significant aspects has been expanded and objectives and targets are being enhanced

Continual Improvement Activities

• Off-site suppliers are being encouraged to implement and register to ISO 14001

• IBM is working with the U.S. Technical Advisory Group to TC 207 on ISO 14001 revisions

• On-line environmental training is being developed for environmental professionals new to IBM

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