IBM Corporation 2014 SUSTAINABILITY& BUILDING A SMARTER PLANET

IBM Corporation 2014  A PERSONAL JOURNEY CHANGE STARTS WITH A SINGLE STEP  A CALL TO ACTION WE ALL PLAY A CRITICAL ROLE  A MANDATE FOR CHANGE BUILDING A SMARTER PLANET BUILDING A SMARTER PLANET

IBM Corporation 2014

Melting Polar Ice Cap

IBM Corporation 2010 Our Fragile Aquatic Eco-System

IBM Corporation 2014 THE SNOWS OF KILIMANJARO

ARID AFRICA

IBM Corporation 2014

China Changing

IBM Corporation 2012 A Country Underwater A rise in sea level would leave the city of Amsterdam and 2/3 of the Netherlands underwater

IBM Corporation 2014 Deforestation

A Delicate Balance

A Call to Action E-Waste Extinction Rate World Population Growth Population w/o Access to Fresh Water A Call to Action

Points of Light Places of Opportunity

…of all the potential electricity available in 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 Planet Industrial 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. C Tons/Year/Person

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 Consumers25% 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 sConcern 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

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* IBM Corporation 2014

IBM Corporation 2011

IBM Corporation 2014 Be a positive pebble in the pond…. “YOU MUST BE THE CHANGE YOU WISH TO SEE IN THE WORLD” Mahatma Gandhi