IBM 2020 Diversity & Inclusion Report The events of 2020 forever changed many things. As a society and within IBM, we are just beginning to comprehend the implications of these changes. While IBM has been a leader in corporate diversity and inclusion for decades, we see 2020 as a reset, and look forward to 2021 and beyond with a renewed conviction and deeper commitment. A letter from our Chairman and CEO 02 Our history of progress in diversity and inclusion 04 Accelerating our progress in 2020 06 A letter from our Chief Diversity Officer 08 Advocacy 13 Allyship 21 Employee experience 29 Accountability 71 Awards 83 Ensuring the future of work is inclusive 84 “I fundamentally believe As I wrote to investors in IBM’s 2020 Annual I conduct monthly reviews of diversity data with Arkansas, South Carolina and Wyoming. And we Report, fostering a culture of diversity and inclusion senior leaders and also consult on our goals stated publicly that we will no longer offer general that as we continue is important to our company’s success. As IBM’s with IBM’s Board of Directors. In addition, IBM has purpose facial recognition or analysis software. Chairman and CEO, I recognize that promoting continued our practice of conducting statistical to uphold the values diversity and inclusion is a never-ending journey. pay equity analysis—which has been in place since IBM will continue to devote substantial resources, of diversity, inclusion, I remain fully committed to this journey and the 1970s—to ensure that IBMers receive equal technology, and expertise in the quest to build achieving progress. I write to you at a time when pay for equal work. a better and more equitable post-pandemic and equity, we will we are witnessing devastating acts of violence future. We will collaborate with governments, our and discrimination around the world on the basis Investing in Skills industry and academic partners, our clients, make IBM a better and of ethnicity, race, sex, sexual orientation, gender Businesses must work together on building skills and the communities we serve to achieve this goal. stronger company.” identity, disability, or creed. I fundamentally believe and providing opportunities across society to Together, we will ensure that the digital era is that as we continue to uphold the values of diversity, accelerate pandemic recovery. IBM is leading by a more inclusive era. Our work has just begun, inclusion and equality, we will make IBM a better example through programs like P-TECH, our and we are ever-committed to the journey of equity and stronger company. global educational initiative to provide students at IBM and in the world at large. in underserved communities with critical skills for As IBM focuses on leadership in the era of hybrid careers in tech. We are offering 1,000 new, paid cloud and AI, we are taking a number of decisive internships to P-TECH students in the U.S. in 2021. steps to create a culture where employees of all This is a tenfold increase from the prior year. Arvind Krishna backgrounds can thrive. We are also determined We’ve also updated the traditional apprentice model Chairman and Chief Executive Officer, IBM to address the widening disparities in society with paid, hands-on learning for the digital era. today. Certain groups—notably women, people in And we have emphasized hiring based on skills over underserved communities, and people with academic degrees. Women now make up more diverse abilities—have suffered disproportionately than a third of IBM’s workforce, and we increased from the global pandemic and the economic representation of women, Black and Hispanic upheaval it has caused. The events of the past year employees in 2020 compared to the prior year. have reaffirmed IBM’s commitment to address Promotions of women and underrepresented long-standing social injustices, accessibility gaps, minorities are also up over prior years. and growing socioeconomic differences. Diversity and inclusion are key to our company’s success Championing Policies and can help propel innovation and expand access We continue to advocate globally on policies to opportunity. to promote diversity, equality and fairness in our society. IBM supported equal marriage Nowhere is this more evident than in the remarkable provisions in Northern Ireland, Japan and dedication of IBMers around the globe to support Taiwan. We also signed an important, multi-year their workplaces and communities. This report is a partnership with Australia’s Victoria Pride Center, tribute to them and reflects the concrete measures which provides vital services to LGBT+ citizens. we have taken to uphold our legacy as a responsible In the U.S., we have been at the forefront of advocacy steward of technology. to extend essential civil rights protections to the LGBT+ community through passage of the Equality Increasing Accountability Act. We also have been one of the tech industry’s In 2020, we increased our transparency and most outspoken advocates for the Dreamers, who reporting of diversity and inclusion. We are focused deserve a clear and certain path to U.S. citizenship. on making significant advances in diversifying In addition, I sent letters to the U.S. Congress and our workforce and have established this as a business the President advocating for racial justice, imperative. We are holding executives accountable police reform, and the expansion of economic for progress in diversity and inclusion and have tied opportunities for our most vulnerable citizens. this directly to their bonuses and compensation. We advocated for passage of anti-hate crime legislation in the state of Georgia, and continue working towards enactment of similar laws in IBM 2020 Diversity & Inclusion Report 02:03 Our history of progress in diversity and inclusion 1911 1914 1935 1944 The newly formed First Disabled Employee Women hired as systems First corporation to Computing-Tabulating- hired 76 years before service professionals, support UNCF with IBM Recording Company, Americans with T.J. Watson, Sr. stated President serving on later renamed IBM, Disabilities Act women will do the Advisory Committee included Black and “same kind of work for female employees equal pay” from its founding 1953 1984 1996 2002 First written equal Non-discrimination Domestic Partner Gender, identity, opportunity policy on the basis of Benefits added in U.S. orientation, and letter is published, sexual orientation expression added 11 years before the and included to IBM’s equal Civil Rights Act in IBM’s equal opportunity policy opportunity policy 2012 2015 2017 2018 Under IBM Chairman Work/life transition Led a grassroots Ginni Rometty co-signed and CEO Ginni Rometty’s support: breast milk coalition to successfully letter with the Coalition leadership, launched delivery, significant defeat discriminatory for the American Dream, P-TECH®—an innovative expansion of paid “bathroom bills” in Texas urging lawmakers education model in parental leave, web- to pass legislation diverse and underserved based elder care protecting dreamers communities 04:05 Accelerating our June July October Launched grassroots IBM committed to Pledged support for the progress in 2020 program enabling IBMers procure 15% of its 1st European Commission’s to advocate for racial tier supplier diversity Digital Education Action justice reform with spend from Black-owned Plan, called on Member Members of Congress, suppliers by 2025. States to include advocated for a hate In 2020, IBM spent inclusive education, like crime bill in Georgia $2.6B with diverse P-TECH, in economic which passed suppliers globally. reform policies February March June July October November A first signer of the Transitioned 95% of Created IBM Emb(race),™ Launched advocacy Announced Call for Code Arvind Krishna letter Vatican’s Rome Call IBMers to remote work, a global initiative that initiatives urging South for Racial Justice, calling to president-elect Joe for AI Ethics to protect launched global initiative activates every IBMer in Carolina, Arkansas, upon our ecosystem to Biden, outlining ways human rights to support the health anti-racism and Wyoming to pass apply IBM technology to to promote inclusion, & well-being of IBMers comprehensive hate combat racial injustice close the skills gap, and amid the pandemic crimes laws expand access to economic opportunity April May June July September December Signed Ascend Impact Launched Open P-TECH®, Created the Words Matter Committed to 1,000 Announced the first Helped form OneTen to Statement to denounce providing the world with Inclusive Language in IT paid IBM internships for Quantum initiative and create one million jobs bias & support Pan-Asian free online learning for initiative, later adopted P-TECH students a $100M investment for Black Americans over communities tech skills by Linux Foundation for Historically Black 10 years Colleges and Universities (HBCUs) June December Arvind Krishna letter IBM letter to incoming to Congress outlining U.S. Secretaries of policy proposals to Education and Labor advance racial equality, on how to rethink declared sunset of IBM approaches to education, facial recognition and skills, training, and analysis products hiring to build a more equitable economy “While IBM has a rich In 2020, the convergence of racial injustice and the inequality. Recently, IBM’s Institute for Business During these conversations, we heard from IBMers global pandemic amplified the stark need for swift Value (IBV) reported that in 2020 in the U.S. alone, about the power of greater transparency to further heritage in diversity and and greater progress from society and businesses. more than five million women were pushed from trust and accountability. This report is the next COVID-19 disrupted all of our lives, though not their jobs, putting female participation in the step in our journey of transparency—it is focused inclusion, we are still in equal measure. Working women were challenged workforce at its lowest rate since 1988.