Image Source: Screen capture from IBM.com.

Last week, IBM announced a new requirement for all of its suppliers: they must install management systems that will track and report environmental data.

The new requirement includes 28,000 suppliers throughout more than 90 countries. It also includes the suppliers’ subcontractors—if the subcontractors’ products or services end up as a significant part of IBM’s supply chain. Environmental data that will need to be reported includes: energy use, greenhouse gas emissions, waste and recycling. IBM is also requiring their suppliers to set environmental goals and publicize their progress in reaching them.

IBM’s vice president for global supply and chief procurement officer, John Paterson, stated:

“We will be amongst the first, if not the first, with these broad-based markers on our supply base and we’re going to have to spend an appropriate amount of time and money to help our suppliers do what we’re asking them to do.”

Right now, IBM is not requiring that their suppliers meet any specific numerical goals; they are simply interested in their suppliers’ environmental performance. Paterson noted that the biggest challenge will be working with suppliers located in places where sustainability is not considered as important as it is in the US and Europe; but they are willing to work with suppliers to help them meet their goals.

There is a punishment (of sorts) for those who do not comply with the requirements (which is expected by early 2011). According to Paterson, “If a supplier cannot be compliant with requirements on the environment and sustainability, we’ll stop doing business with them”. That certainly seems like a fair bargain to me; especially considering it’s the world’s biggest technology company.

By Heidi Marshall