IBM Recognized for its Green Recycling Practices by IT Analyst Firm IDC

ARMONK, N.Y. - Jul 2008: IBM Global Asset Recovery Services, the IT equipment renewal and recycling arm of IBM, was recognized by leading IT analyst firm IDC as one of the first recipients of its Green Recycling and Asset Disposal for the Enterprise (G.R.A.D.E.) certification.
According to IDC, IBM Global Asset Recovery Services, a division of IBM Global Financing, the lending and leasing business segment of IBM exceeded the minimum criteria required for G.R.A.D.E. certification, which looked at IBM’s broad range of offerings, remote applications, onsite services, logistics, in-plant processing, and post treatment. While the IDC G.R.A.D.E certification focused only on IBM Global Asset Recovery Services operations in the US, IBM operates similar facilities throughout the world.

“IBM has been environmentally responsible for a long time,” said Kevin Cleary, General Manager of IBM Global Asset Recovery Services. “Ever since 1971, when our first Corporate Environmental Commitments were published, we have evolved to meet and surpass the expectations of our employees, clients and key stakeholders. This certification is a further validation of those commitments.”

“Our assessment of IBM shows the company has world-class operations and offers all of the required components of a proper enterprise-class asset disposal,” states IDC in its report accompanying the G.R.A.D.E certification. “Such resources enable the company to offer extended life and remanufacturing capabilities, end of life and dismantling capabilities, as well as scrap processing.”

IBM Global Asset Recovery Services’ big differentiator in the marketplace is its ability to find uses for virtually all of the IT equipment that it takes back from customers as part of its regular leasing operations. In 2007 IBM processed nearly 100 million pounds (44,000 + metric tones) product end of life equipment and material with only 0.78% returned to landfills or incinerated.

From 2002 through 2007, IBM rebuilt more than 1,500 System z Servers -- data processors common in most large data centers -- and put them back into service as hybrids (a machine consisting of both new and old, harvested parts) with IBM Certified Used warranties.

IBM Global Asset Recovery Services reuse and recycling numbers:

* From 2003 through 2007
o IBM Global Asset Recovery Services has resold or reused over 4.6 million machines
o Over 85% of the machines returned to IBM Global Asset Recovery Services remanufacturing centers are resold or reused
o In 2007, IBM Global Asset Recovery Services processed an estimated 40,000 machines or 1.8 million pounds per week around the world.
o From 2002 through 2007, IBM Global Asset Recovery Services harvested over 12.7 million parts from returned machines and sold them for reuse
o Since 1995, when IBM first began reporting the volumes of product waste it collected and recovered (which includes products resold, refurbished, or recycled) in the company’s annual corporate environmental report, IBM has documented the collection and recovery of more than 1.5 billion pounds of product waste.

IBM product end of life management statistics:

* In the past two years, IBM Global Asset Recovery Services major operations processed over 25,100 metric tons of metals: enough metal equivalent to the metal contained in more than three Eiffel Tower structures. (i.e.: computer and server take-back only as part of its leasing operations and not including equipment used internally by the rest of IBM)
* In the past four years, IBM Global Asset Recovery Services processed 88,512 metric tons of end-of-life product and material through its de-manufacturing centers, a weight equivalent to
o 157 Airbuses or
o Over 1.6 fully loaded Titanic-sized luxury liners.
* From 2002 to 2007, over 9.8 million parts have been collected for potential reuse