IBM Human rights & social issues, Human rights due diligence
Details of engagement:
EOS initiated engagement on this topic in 2021, asking IBM to clarify that procedures were in place to conduct due diligence on clients and suppliers regarding adverse social impacts and human rights risks. These procedures should show how these impacts and risks are considered in business decision-making such as no-go areas, clear expectations, and engagement procedures. In 2022, EOS had a follow-up discussion where the company shared its ongoing efforts to improve transparency on human rights due diligence efforts covering suppliers and clients and referenced that it had been making progress with respect to its human rights saliency assessment.
During 2021 and 2022, the company worked with a sustainability and human rights non-profit to identify the salient human rights issues across its business. This assessment prioritised areas for future due diligence and helped refine its human rights strategy. IBM also established a role dedicated to the oversight of its human rights initiatives. Following the company’s publication of its salient human rights issues, EOS encouraged it to follow up with quantitative data showing outcomes of human rights due diligence, and to clarify its restrictions and to share examples of times when it has pulled back from clients and suppliers due to human rights concerns.
Outcomes and next steps:
According to the company’s 2022 ESG report, IBM requests a cross-section of its first-tier suppliers to participate in audits to gauge their conformance to the Responsible Business Alliance (RBA) code and to IBM’s requirements. In 2022, these suppliers participated in 60 RBA full scope audits and 46 reaudits in 19 countries where heightened risks for social and environmental responsibility are known to exist. The company discloses data showing the quantity of audits and the distribution of nonconformances.
As a next step, the company will build on its saliency assessment with deeper due diligence on the risks identified. EOS will continue to engage the company, focusing on the impacts of AI on its workforce and/or global workforces.
At time of publication IBM is held in our Sterling Corporate Bond portfolio.
