IBM established its Chairman’s Environmental Award in 1991 to encourage leadership and recognize achievement and progress in environmental affairs on the part of IBM’s organizations. This annual award promotes the contribu-tions of IBM’s business units toward the objectives of the company’s Corporate Policy on Environmental Affairs as applicable to their mission and operations. The organiza-tions are evaluated against their opportunity for leadership, initiative and results over the past three year period.

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IBM Chairman’s Environmental Award 2011April 2012

Environmental Affairs Policy

IBM is committed to environmental affairs leadership in all of its business activities.

• Provide a safe and healthful workplace.

• Be an environmentally responsible neighbor in the communities where we operate.

• Conserve natural resources through reuse, recycling and using re- cycled materials.

• Develop and market products that are safe for their intended use, energy efficient and protective of the environment.

• Use development and manufacturing processes that do not adversely affect the environment.

• Conserve energy, improve energy efficiency and give preference to renewable energy when feasible.

• Participate in efforts to improve environmental protection and under- standing around the world.

• Utilize IBM solutions and expertise to assist in solving environmental problems.

• Meet or exceed all applicable government requirements and voluntary IBM requirements and operate to the same standards all over the world.

• Strive to continually improve IBM’s environmental management system and performance, and publicly disclose results.

• Conduct rigorous audits and self-assessments and report periodically to the Board of Directors.

IBM Chairman’sEnvironmental Award2011

IBM Global Real Estate Operations (RESO)2011 RecipientIBM Chairman’s Environmental Award

RESO demonstrated outstanding leadership and execution, including: • Annual energy conservation rates of 5% or more from 2009 - 2011, saving 698,000 megawatt hours (MWh) of electricity and 1,052 mil- lion BTU of fuel

• 24% reduction in nonhazardous waste generation

• Reduction of 4 million square feet of office space and associated environmental demand through space utilization improvements • Expansion of its Environmental Management System to include landlord-managed leased locations

• Internal deployment of IBM Smarter Building solutions and demon- stration of their capabilities

• Implementation of effective employee alternative commuting programs and community volunteer initiatives

• 25 external awards for leadership in environmental and energy man- agement

• Cross organizational efforts reduced IBM’s operational energy consumption by 899,000 MWh from 2009 through 2011 and saved over $90M.

• Global Technology Services (GTS) achieved its goal to double the computing capacity of over 400 of its data centers without increasing power consumption from 2007 levels by year-end 2010.

• Integrated Supply Chain (ISC) introduced 130 design and proces changes to improve product packaging and reduce costs by $20M.

• ISC established environmental and social management system requirements for all IBM suppliers.

• 2011 Corporate Energy Management International Award from the Association of Energy Engineers

• The 2011 Richter Award for Excellence in Supply Management in the Sustainability category from the Institute for Supply Manage- ment

• Corporate Level status under the EU Code of Conduct for Energy Efficient Data Centers, covering 27 data centers, the largest portfo- lio from a single company to be recognized

• 2010 Most Valuable Pollution Prevention Award from the National Pollution Prevention Roundtable for the elimination of PFOS and PFOA compounds from manufacturing processes • Achieved LEED® Gold Certification for the new, 60,000 square foot Leadership Data Center in RTP, North Carolina

• IBM Research and Systems & Technology Group (STG) eliminated perfluorooctane sulfonate (PFOS) and perfluorooctanoic acid (PFOA) compounds from the company’s chip manufacturing pro- cesses in January 2010.

• IBM’s POWER7® Systems were first in class in industry to meet the U.S. EPA ENERGY STAR® requirements for servers.

• STG introduced Lead (Pb)-free soldering in its low and mid-range pSeries® systems and zSeries® peripherals.

Products and Manufacturing ProcessesOperations

• Software Group launched IBM Intelligent Building Manager with proof points from internal deployment by RESO.

• IBM Research developed Intelligent Distribution Outage Planner for optimizing power grid analytics that increased annual sales for Shang- hai Power by $61M.

• Global Business Services (GBS) and Research used IBM’s Supply Chain Sustainability Management Solution to help clients analyze distribution costs and associated carbon dioxide emissions for supply chain optimization.

• GTS utilized its Portable Modular Data Centers in 20 growth mar- ket countries and new cloud computing services for Smarter Cities like IBM’s Intelligent Transportation and Intelligent Operations Centers to increase collaboration across city operations.

• A Research/GBS/Sales & Distribution project with a Water and Sewer Authority in the U.S. improved system prediction and avoided infrastructure failure while reducing the utility’s fuel use and operat- ing costs.

Solutions and Services

About This Brochure:

Throughout the 20 years of this award program, the outstanding lead-ership demonstrated by all of IBM’s business units has made it a very special honor for just one unit to be selected for each year’s award.

In addition to RESO’s accomplishments as the 2011 recipient of the award, the following panels also provide a sampling of the 2009-2011 environmental accomplishments and recognition across IBM’s organiza-tions as highlighted in this year’s award nominations.

Recognized Leadership