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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