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p.5,6

"In the period from January through December 2022, IBM received and analysed 60 full RBA audit and 46 re-audit reports from suppliers in: Brazil, Bulgaria, China, Colombia, Czech Republic, Germany, Hungary, India, Japan, Korea, Malaysia, Mexico, Philippines, Romania, Singapore, Taiwan, Thailand, United States and Vietnam. An aggregate summary of nonconformant findings for the 2022 audits is available in the Supply Chain section of the Corporate Environmental, Social, and Governance (ESG) report https://www.ibm.com/ impact (ESG Report)."

"In these 26 nonconformant findings there were no instances of workers subjected to the worst forms of modern slavery (i.e., human trafficking, wage-less bonded labor, or surrender of personal documentation).In 2022, we enhanced our supplier communications and education materials by emphasising the proactive measures suppliers need to take to address all aspects of conformance to this provision of the RBA Code. We feel this was a positive factor in the near 40% reduction of nonconformant findings in this Code provision compared to 2021 audits."

"35 IBM suppliers took advantage of the 2022 online training, with over 120 personnel taking an aggregate of 340 hours of training."

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Number of incidents identified: "The 26 nonconformant findings are summarised as follows:

 

- (7 findings) in voluntary resignation situations, workers bore financial liablity or salary forfeiture for recruitment, transportation, and training costs

 

- (5) in prohibited recruitment situations and where workers were charged transportation and hiring fees, workers were reimbursed within three months

 

- (3) No policy and/or contract terms on prohibition of Forced Labour, Worker Fees, or Modern Slavery/ Human Trafficking

 

-(2) Workers' reimbursement for prohibited pre-employment fees exceeded three months and RBA Code parameters

 

- (2) Wage loan repayment exceeded RBA Code parameters

 

- (2) Worker restrictions on subsequent employment for another company in the sector

 

- (2) No policy on freedom of movement in the workplace

 

- (1) No monitoring of policies, procedures, and programme effectiveness

 

- (1) Labour contracts (a percentage) lacked workers' signatures

 

- (1) Labour contracts (a percentage) lacked workers' beneficiaries" (page 6).