IBM x Sourcemap Partnership Explained by Jonah Smith

This speech by Jonah Smith, VP and Global Head of ESG at IBM, emphasizes the critical need for supply chain transparency to meet increasing demands from investors, clients, and regulators. Here are the main points: ESG Pervasiveness: ESG (Environmental, Social, and Governance) touches every part of a company's value chain and must be addressed comprehensively. Stakeholder Demands: Investors and global clients are pressing IBM for detailed information on sourcing, supplier inputs, and any existing human rights or environmental grievances within the supply chain, as well as the company's plan to remedy them. "You can't fake it." The Visibility Challenge: Achieving this transparency requires excellent supply chain visibility. This is difficult because IBM is a massive company with thousands of direct suppliers, and the chain becomes more opaque at the lower tiers (the 5th tier and beyond). Adopting SourceMap: IBM selected SourceMap to complement its own technology and provide the necessary traceability and transparency into the supply chain. This is crucial for ensuring human rights due diligence and ethical sourcing. Alignment and Compliance: The goal is to get all suppliers aligned with IBM's principles on human rights and its business code of conduct. Visibility is key to seeing the entire chain and ensuring everyone is "in the same boat." Regulatory Imperative: The transparent data gathered is essential not just for ethics, but for meeting a global array of incoming regulations, including the CSDDD (Corporate Sustainability Due Diligence Directive), EU deforestation and battery regulations, and SEC compliance related to human rights. Beyond Compliance: IBM's ultimate commitment is rooted in its values of transparency and trust, aiming for 100% regulatory compliance while also focusing on "what is just the right thing to do in terms of a business."