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Letter from IBM Chief Procurement Officer to suppliers on supply chain and environmental responsibilities

February 22, 2010

Dear IBM Supplier:

IBM has expected its suppliers to operate in an environmentally responsible manner for decades. Accordingly, our management system has included various environmental and supply chain social requirements for our suppliers. In addition, in 1998, IBM explicitly encouraged its suppliers to align their own environmental management systems with International Standards Organization (ISO) 14001 and to pursue registration under this international standard. In 2004, IBM published its Supplier Conduct Principles to articulate the company's overall supply chain social and environmental requirements.

These early initiatives and actions - taken well before the present day focus on "green" -- have served IBM and its suppliers well, underscoring how effective environmental management makes good business sense. As we begin a new decade and in recognition of the continually growing imperative for environmental and corporate responsibility across supply chains, I am writing to inform you about some new requirements we are now setting for our suppliers in this important part of business.

Specifically, IBM will now require all of its suppliers to:

Many of you have already been doing this for several years, and you have recognized -- like IBM -- that environmental leadership fosters business efficiency and effectiveness. You have also accepted that environmental responsibility and accountability resides at home, in your own business operations. For others, these requirements may represent a new way of doing business. Neve