Boston, April 29, 2024 – Shareholders will cast a vote on Green Century’s shareholder proposal asking IBM to set a stronger greenhouse gas (GHG) emissions reduction target at its April 30 annual general meeting.
Though IBM has committed to reducing a percentage of its overall climate emissions, it has refused to set a target that covers all of its operational and upstream and downstream emissions, also known as a science-based target. Ironically, IBM sells software designed to help its customers organize emissions data so they can set their own science-based targets.
“Our proposal addresses a yawning gap between what IBM does and what it says,” said Green Century President Leslie Samuelrich. “IBM speaks of the transformative power of science-based targets on its website, but it won’t set its own comprehensive target. Investors are right to be concerned about a company that is so oblivious to the optics.”
IBM’s Credibility Gap
IBM has demonstrated decades-long leadership on climate issues. As early as 1994, it began to disclose its carbon dioxide emissions. Additionally, it first purchased renewable electricity in 2001, publicly supported the Paris Agreement in 2015, and backed a bi-partisan plan for a carbon tax in 2019.
However, the company’s recent actions undermine its credibility. Even though IBM has a target to substantially reduce its emissions by 2030, the target only covers a few categories of its emissions sources. Meanwhile, peers’ targets cover a much wider scope of emissions, including those of Hewlett Packard Enterprise, Microsoft, and Salesforce.
“I can’t think of another company that has more to gain by establishing science-based targets and implementing them,” said Green Century Shareholder Advocate Andrea Ranger. “You simply can’t maintain your leadership position in the industry, while ducking a commitment yourself. The reputational risk is breathtaking.”