Ep. 220: John Mahoney: Breaking the ESG Barrier: IBM's Journey into Sustainability

Dive into the world of ESG (environmental, social, and
governance) at IBM with our latest episode of Count Me In. Today
we discuss the challenges and successes of implementing ESG
objectives in a global corporation. Join our Guest John Mahoney,
ESG External Reporting Project Manager and hear how IBM's
commitment to sustainability, open communication, and
cross-functional collaboration is driving positive change and
shaping the future. If you want to learn how to navigate the
complexities of ESG and unlock new opportunities, don't miss this
episode! 


Connect with John:
https://www.linkedin.com/in/johnmahoneycpa/
IBM Impact: IBM's ESG Framework | IBM


Full Episode Transcript:
Adam:           
Welcome back to Count Me In. In today's episode, we're joined by
John Mahoney, an ESG external reporting project manager, IBM. He
shares his unique journey and insights into the company's
approach to ESG integration. We discuss the importance of having
the right company culture. Support from leadership, and cross
functional collaboration to make ESG initiatives successful. So
sit back and relax and let's explore how IBM is uniting for a
sustainable future.


 


Now, John, I want to thank you so much for coming on the podcast
today. We're really excited to talk about ESG, and ESG at IBM.
And, so, many professionals, in this space, have been reluctant
to engage with ESG for a number of different reasons. But maybe
you can start with talking about what your journey is, was to get
here.


 


John:           
  Of course, and my thanks to you, Adam, and the
IMA, for having me. I'm excited to be a part of the Count Me In
series, it's really great. In terms of my story, I'd say I've had
a relatively conventional accounting background, in that I spent
the first chunk of my career in public accounting. Splitting my
time between audit and advisory services.


 


Where I was fortunate to have the chance to work with some really
great clients, and help them navigate through complex and
challenging topics. Spanning from the adoption of accounting
standards, acquisitions, carve-outs, stocks implementation, as
well as, some SEC reporting jobs. 


 


So I was really grateful to have seen so many different things,
early on, in my career, in public, and I knew I wanted my next
role to be dynamic as well. So I was very thankful to have landed
at IBM. First joining the Accounting Practices and External
Reporting Organization, which is really a consultative group
focusing mostly on technical accounting consultations, as well as
the preparation of IBM's periodic SEC filings. 


 


I had always enjoyed the reporting aspect of the job, and helping
companies craft their stories and messaging to external parties.
So I knew I wanted to stay close to that and I was grateful that
the opportunity at IBM afforded me that. So, as you can tell, I
don't have an ESG background, but I did know I wanted to continue
to explore new topics. And with all of that being said, I had
been keeping an eye on the energy in the ESG space, and I had
expressed interest to stay involved wherever possible within the
group. 


 


So when the opportunity arose to make it a full-time job, I
jumped right in headfirst. And really saw this as a great chance
to apply the skills that I've been working on, thus far, in my
career to a new area and one that was not only hyper relevant, in
the time, but also deeply purposeful in terms of subject
matter. 


 


We spend a lot of time working on dollars and cents related
topics and working through financial statements, and this was
just a really exciting opportunity to apply my skill set in a
different forum. 


So, well, I can't speak to reluctance, personally, I'd even
venture to say that we're probably passing the point of
reluctance. But for those that are hesitant, I'd encourage
everyone to engage and start exploring the topic and draft
standards. 


 


While it is gaining more momentum as a topic, there's still only
a small amount of accounting folks that are focused on it
currently. And with the rules still being written, it's a great
chance to get in on the ground floor and establish yourself as a
go-to person, not only within your organization, but really the
space at large. So really excited to be a part of the journey,
and keen to see where it takes me and all of us at large.


 


Adam:           
And I'm really excited to hear about your journey, as we've heard
other people's journeys when it comes to ESG. I find that
everybody's journey is different and I feel that that brings a
real diversity of thought into the ESG space. Which is needed in
something that's growing and something that's just starting out,
you need to have many different perspectives.


 


John:           
  I couldn't agree more, and everyone I've engaged
with have been coming from a diverse background. And some folks
have that key SEC reporting or accounting footing, and other
folks, perhaps, have spent more time in true-blooded ESG
functions, if you will. I think between the pending rule on SEC
climate, the Corporate Sustainability Reporting Directive in
Europe, the ISSB standards, we just haven't seen anything of this
magnitude all at once. 


 


So bringing together a diverse group to really tackle this
watershed moment for the profession. It's going to have broad
impacts on not only finance and accounting organizations, but
organizations for years to come.


 


Adam:           
Yes, definitely, so when organizations bring on ESG into their
organization. You have to start combining the ESG objectives with
the overall objectives of the organization. How does IBM go about
harmonizing those objectives?


 


John:           
  Yes, so, no surprise, IBM is a large company.
We've got more than 280,000 employees, globally, operating in
more than 170 countries. So with that scale, and for the scale of
most large companies, there's always countless initiatives and
objectives that need to coexist, simultaneously. 


 


We are lucky in that IBM does have a great legacy with ESG just
as it relates to climate. We incorporated our first environmental
policy in 1971, and began reporting on CO2 emissions as early as
1994. But truly have a deep history in all three pillars of ESG.
So that legacy is great, in that it not only gives us a head
start in navigating the landscape and proposed rules. But it also
has helped establish responsibilities within the organization, as
well as avenues for communication between groups. 


 


So really fortunate to have that legacy. But even with that head
start, recent activity in the ESG space comes with even more and
it adds incremental objectives that we all need to navigate.
Including pending regulations that I've mentioned. Rating agency
requests, shareholder needs, analyst inquiries, and countless
other internal and external factors. 


So really important to emphasize how important that open lines of
communication and regular touch points with different functions
are. And, also, the importance of educational sessions to bring
awareness of what other functions are managing and striving
towards.


 


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