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Energy Supply Solutions

IBM and several other companies are partnering with the World Resources Institute (WRI) to build markets for renewable energy. Convened in 2000, WRI’s Green Power Market Development Group seeks to develop corporate markets for 1,000 MW of new, cost-competitive green power by 2010.
In the United States, IBM’s direct purchases of renewable energy and purchases of RECs totaled 106,725 MWh, ranking IBM as the tenth largest purchaser of renewable energy in the U.S. EPA Green Power Partners programs at the beginning of 2006.
IBM’s worldwide use of renewable energy accounted for 2.7% of its worldwide electricity usage in 2005. This reduction from 2004 was due to limited availability in the UK of electricity from renewable energy sources during the 2005 contract negotiations. In the 2006 contract negotiations, IBM UK was able to contract for approximately 175,000 MWh through September of 2006, which will increase worldwide direct purchases of renewable energy to over 200,000 MWh for 2006. In 2006, IBM has also purchased 96,000 MWh of renewable energy certificates (RECs), which allows the company to purchase the CO₂ emission reductions associated with electricity generated from renewable energy sources, in this case wind turbines.

Energy Demand Solutions

In 2005, IBM’s energy conservation efforts and the use of renewable energy avoided the emissions of more than 156,000 tons of CO₂ and other combustion-related gases. The achievement avoided the consumption of 161 million kWh of electricity and 1.82 million gallons of fuel worldwide, and saved IBM $10.6 million in energy costs.
Between 1990 and 2005, IBM reduced or avoided CO₂ emissions by an amount equivalent to 40% of its 1990 emissions through its global energy conservation program.
IBM sets targets for increasing the energy efficiency of its products. One-hundred percent of the applicable products first shipped in 2005 met ENERGY STAR criteria. Product energy efficiency goals for its other products vary by product type, but all are measured by their increase in energy efficiency over previous generation products or models. In 2005, IBM reporting increases in product energy efficiency ranging from 11.5% to 50%.

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