"These are important goals - and you can read in this report how we measure progress against them," said IBM Chairman and CEO Ginni Rometty, "But our commitment to Smarter Planet yielded something beyond Key Performance Indicators. To build a Smarter Planet - and to run a smarter enterprise - it turns out that your business and citizenship strategies must be more than aligned. They must become one."IBM's Smarter Cities Challenge, which expanded to 30 more cities in 2012, is among the best-known examples of the company's integrated approach to corporate citizenship. This $50 million competitive grant program sends teams of IBM experts to cities around the world, unleashing the imagination of its research scientists, and the urban expertise of its consultants to help make the grant cities smarter and more liveable. As a result of its pro bono Smarter Cities Challenge engagements in 2012, Da Nang, Vietnam is improving the way its government agencies coordinate with one another to provide better services to citizens. Cities like Tshwane, South Africa and Townsville, Australia have established groundbreaking water conservation programs. Cities like Nairobi, Kenya, Cheongju, Korea and Pittsburgh, USA are embarking on ambitious public transportation projects. And places like Jacksonville in the US are proceeding with economic development initiatives. "In all of our citizenship initiatives - just like in our business pursuits - we work to provide real leadership by creating solutions, bringing them to scale and making them sustainable," said Stanley S. Litow, IBM Vice President of Corporate Citizenship and Corporate Affairs, and President of the IBM Foundation. In the area of environmental sustainability, IBM achieved and exceeded its second generation climate goal. As of year-end 2012, IBM's energy conservation and procurement of renewable energy yielded a 15.7 percent reduction in energy related CO2 emissions since 2005 – exceeding the goal of 12 percent. This was on top of already reducing or avoiding CO2 emissions from 1990 to 2005 by an amount equal to 40 percent of its 1990 emissions. In addition, 43 IBM data centers across 19 countries in the European Union (EU) were awarded "Participant" status in Data Center Energy Efficiency based on the EU Code of Conduct for Energy Efficient Data Centers. This honor represents the largest portfolio of data centers from a single company to receive the recognition to date. And, within one year of its issuance in 2011, IBM successfully achieved registration of the company's global environmental management system and its integral energy management program to the ISO 50001 energy management systems standard. IBM was the first major company to earn a single global registration to the ISO 14001 standard for environmental management systems in 1997.