Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Performance
• Social Performance
• Sustainable Development

Environmental Achievements

• Implemented ISO 14001 environmental management systems at 97% of manufacturing and service facilities (535 facilities)
• Steady progress in producing Environmental Declarations (EDs) and Environmental Product Declarations (EPDs), with four gaining third-party certification
• Launched a new strategic thrust into alternative energy solutions (wind turbines, microturbines, fuel cells, combined heat and power plants), and divested large-scale fossil fuel, hydro, and nuclear power generation activities
• Reduced CO2 emissions

Social Achievements

• Launched a new social policy for review and consultation with stakeholders
• Introduced three social indicators for health and safety
• Increased the total number of sustainability performance indicators to 39
• Conducted case studies to investigate the social impact of operations in seven countries (Brazil, China, Egypt, Poland, South Africa, Switzerland, UK)
• Participated in the launch of the United Nations Global Compact

Governance Achievements

• Renamed Environmental Affairs organization to Sustainability Affairs to reflect integrated approach to sustainable development
• Established strategies and action plans for the next five years with Country and Business Area Sustainability Controllers
• ABB was rated top of its industry group for the second year in succession in the Dow Jones Sustainability Group Index

Climate Goals & Targets

Environmental Challenges

• Ever-changing business environment created new challenges and opportunities
• Growing opposition to globalization and concerns over poverty, inequality, and environmental damage
• Need to extend social responsibility beyond compliance with regulations
• Difficulty in measuring social impact
• Lack of internationally recognized definitions and standards for social performance
• Significant differences between social systems in different countries

Mitigation Strategies

• Shifted strategy toward knowledge-based activities
• Divested traditional large-scale power generation businesses
• Developed a new corporate social policy
• Conducted case studies to investigate social impacts
• Introduced social performance indicators
• Participated in the UN Global Compact
• Engaged stakeholders in a discussion and review of the social policy

Supply Chain Management

Responsible Procurement

• Preference given to suppliers with environmental management programs and ISO 14001 certification
• Minimum environmental standards required for suppliers of direct materials and services

Climate-Related Risks & Opportunities

Opportunities

• Development of alternative energy solutions

Reporting Standards

Frameworks Used: ICC Business Charter for Sustainable Development, ISO 14001, ISO 14025, ISO 14031, ISO 14040-43, SA 8000, OECD Guidelines for Multinational Enterprises, UN Global Compact

Certifications: ISO 14001

Third-party Assurance: Det Norske Veritas (DNV)

Sustainable Products & Innovation

• Alternative energy solutions (wind turbines, microturbines, fuel cells, combined heat and power plants)

Awards & Recognition

• Top rating in Dow Jones Sustainability Group Index for two consecutive years
• emPower 2000 national award for environmental care in South Africa

Environmental Metrics

ESG Focus Areas

• Climate Change
• Energy Efficiency

Environmental Achievements

• Statoil's Gjøa platform reduced CO2 emissions by 210,000 tons per year by connecting to shore power using ABB technology.
• Energy savings of 44 percent and a CO2 emission reduction of 550 tons achieved at ABB's Mannheim office.
• Other ABB sites achieved energy savings of 24 percent, CO2 reduction of 1,956 tons and a cost reduction of almost $800,000 annually.

Social Achievements

• Energy efficiency training delivered in six Guangdong cities to more than 1,000 enterprises.
• Partnership with the Beijing Energy Conservation and Environmental Protection Center and WWF to launch a high-level training program on energy efficiency management.

Governance Achievements

• Formalized Green Building Policy as a mandatory Group Directive.
• Established a cross-functional work program for energy efficiency in production processes and buildings.

Climate Goals & Targets

Environmental Challenges

• Barriers to investing in energy efficiency (lack of knowledge, unwillingness to change, upfront costs).
• Increased primary energy consumption in 2010, driven partly by the need for diesel-fueled backup power generation in India.
• Challenges in ensuring appropriate handling procedures for SF6 at ABB and customer sites.
• Incomplete data collection around transport emissions.

Mitigation Strategies

• Energy efficiency training programs in China.
• Strategic partnership with the Ministry of Industry and Information Technology addressing energy efficiency.
• Development of key performance indicators to monitor the environmental impact of goods transport.
• Pilot projects to understand application of transport indicators.
• Establishment of data collection and methodology for emissions calculation from business air travel.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Awards & Recognition

• Award by the Deutsche Energie-Agentur for sustainable implementation of ecological real estate management in Germany.

Environmental Metrics

ESG Focus Areas

• Products and services
• Integrity
• People and society
• Human rights
• Safe and secure operations
• Responsible sourcing
• Energy efficiency and climate change
• Resource efficiency
• Right materials

Environmental Achievements

• Improved energy intensity of operations by 1.6%, resulting in energy consumption of 66.02 MWh per million US dollar sales.
• More than 200 energy saving projects resulting in 34.4 GWh of energy savings.
• Reduced lead in solder by 24%.
• Increased materials recycled and reused in-house by 20%.

Social Achievements

• Launched “Don’t look the other way” leadership initiative to improve safety culture.
• Held first-ever global safety week with 142,000 attendees.
• Implemented ABB community engagement tool in major countries.
• Increased number of formal employee performance and development appraisals.

Governance Achievements

• Recognized by Ethisphere Institute as one of The World’s Most Ethical Companies.
• Over 94,000 employees trained on anti-bribery principles.
• Implementation of integrity programs formally reviewed in individual countries.

Climate Goals & Targets

Environmental Challenges

• Three employee/contractor fatalities.
• Increased GHG emissions by 4% due to increased SF6 emissions and air travel.
• Increased proportion of waste sent for final disposal.
• Challenges in consistently managing human rights issues across global operations.

Mitigation Strategies

• Launched “Don’t look the other way” safety initiative.
• Implemented global safety week and training programs.
• Developed detailed safety targets and KPIs.
• Strengthened local SF6 management plans.
• Implemented various water saving projects.
• Expanded Supplier Sustainability Development Program (SSDP).
• Increased human rights awareness training for managers.

Supply Chain Management

Supplier Audits: 175 supplier assessments in 2014

Responsible Procurement

• ABB Supplier Code of Conduct
• Supplier Sustainability Development Program (SSDP)

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI G4 Guidelines

Certifications: ISO 14001 (390 sites), OHSAS 18001 (378 sites)

Third-party Assurance: DNV GL

Sustainable Products & Innovation

• Eco-efficient switchgear insulation gas
• Most powerful submersible power transmission cable
• YuMi collaborative robot
• SmartVentilation for mines

Awards & Recognition

• Zayed Future Energy Prize 2014
• Thomson Reuters Top 100 Global Innovators

Environmental Metrics

ESG Focus Areas

• Energy efficiency
• Renewable energy
• Climate change
• Resource efficiency
• Integrity
• Sourcing
• Safety and security
• Human rights
• Community engagement

Environmental Achievements

• 9% reduction in GHG emissions (Scope 1 + 2)
• 430,000 m3 reduction in water withdrawals in 2015
• 20% of waste sent for final disposal
• 6.8% reduction in absolute energy consumption since 2013
• Commissioned the world’s first gas-insulated switchgear with a new eco-efficient gas

Social Achievements

• 97% of employees trained on anti-bribery principles
• 5,600 training sessions during global safety week
• 700 community projects and charities supported in 2015
• 48 of 66 countries reporting on social activities supported community projects
• Launched White Collar Productivity program

Governance Achievements

• 97% completion rate of anti-bribery training and integrity e-learnings
• Piloted new, global pre-approval tool for gifts, entertainment and expenses
• Received 19 awards for good corporate citizenship worldwide
• Received Ethisphere Compliance Leader Verification and Anti-Corruption Program Verification seals

Climate Goals & Targets

Environmental Challenges

• Improving the safety of our employees and contractors
• Ensuring the safety and security of our people in an increasingly volatile world
• Managing environmental and social risks at our 70,000 suppliers
• Decreasing energy intensity per dollar of sales by 20 percent by 2020
• Increasing understanding and management of human rights risks

Mitigation Strategies

• Sustained Group-wide safety campaign
• 139,000 site observation tours to improve safety compliance
• Supplier Sustainability Development Program to assess and train suppliers
• Drive energy efficiency efforts at sites
• Strengthen business line manager responsibility and accountability, carry out further widespread training and improve the auditing of sites

Supply Chain Management

Supplier Audits: 777 in-depth assessments since 2010

Responsible Procurement

• Supplier Sustainability Development Program
• Supplier Code of Conduct
• Conflict minerals requirements

Climate-Related Risks & Opportunities

Opportunities

• Energy-efficient products
• Renewable energy technologies

Reporting Standards

Frameworks Used: GRI G4 Guidelines

Certifications: ISO 14001, OHSAS 18001

Third-party Assurance: DNV GL

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 9 (Industry, innovation and infrastructure)
• Goal 13 (Climate action)

ABB's business focus on utilities, industry, infrastructure and transportation correspond to several of the improvement areas prioritized in the SDGs.

Sustainable Products & Innovation

• Energy-efficient motors
• Variable speed drives
• High-voltage direct current transmission
• Microgrid solutions

Awards & Recognition

• 19 awards for good corporate citizenship
• Ethisphere World’s Most Ethical Companies

Environmental Metrics

ESG Focus Areas

• Climate change
• Water management
• Waste management
• Safety
• Diversity & Inclusion
• Community development
• Human Rights
• Ethical business practices
• Supplier sustainability

Environmental Achievements

• Reduced greenhouse gas emissions from manufacturing plants by more than 40% from a 2013 baseline
• Sourced around 40% of green power out of total electricity requirement of 17024 MWh for its manufacturing plants.
• 93% of total waste recycled

Social Achievements

• Recognized for diversity initiatives with two external awards
• Launched eMart for convenient customer shopping
• Opened new Robotics and Discrete Automation facility with double production capacity
• Improved overall employee engagement score by 4 points to 79
• 168 hours of health and well-being related trainings imparted to employees and contractors
• Provided telemedicine and COVID-19 care packages to employees and their families
• Supported employees with special insurance packages for COVID-19 related hospitalizations

Governance Achievements

• Implemented ISO 45001 and ISO 14001 standards at all workplaces
• Established Country Sustainability Boards for good sustainability governance
• No monetary fines/penalties for environmental non-compliances
• Conducted 4176 Sustainability Observation Tours (SOTs) digitally

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting operations and stakeholder engagement
• Travel restrictions hindering supplier audits
• Some suppliers lacking IT infrastructure for virtual assessments

Mitigation Strategies

• Phased resumption of workplaces following government protocols
• Strengthened customer outreach through digital means
• Recalibrated supplier assessment plan to move things digitally
• Conducted virtual assessments and supplier trainings
• Provided remote commissioning assistance based on AR/VR technology

Supply Chain Management

Supplier Audits: 11 suppliers assessed in 2020

Responsible Procurement

• ABB Supplier Code of Conduct (SCoC)
• Supplier Sustainability Development Program (SSDP)

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 14001:2015, ISO 45001:2018

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Gas insulated switch gear
• Low voltage circuit breakers

Awards & Recognition

• Technology of the Year Award for wind generators from India Wind Energy Forum (IWEF)
• 2020 “Exemplar of Inclusion award” in the Most Inclusive Companies in India (MICI) Index
• Top 100 Best Companies for Women in India by Working Mother & AVATAR
• Breaking New Grounds award at the Global Diversity Equity and Inclusion Summit 4.0
• SheMaker - Corporate Evangelist 2020 Award from People Konnect

Environmental Metrics

ESG Focus Areas

• Low-carbon society
• Preserving resources
• Promoting social progress
• Creating a culture of integrity and transparency

Environmental Achievements

• Reduced GHG emissions by 43% in 2022 and 65% since 2019.
• Reduced total energy consumption by 15% compared to 2019 baseline.
• 52% of energy sourced from renewables in 2022.
• Reduced SF6 emissions by 79% since 2019.
• Implemented more than 90 energy-efficiency projects.

Social Achievements

• Improved workplace safety, achieving a lost-time injury frequency rate (LTIFR) of 0.14 in 2022.
• Increased proportion of women in senior management roles to 17.8% in 2022.
• Achieved an employee engagement score of 76 out of 100.
• Expanded programs for community engagement, including contributions to humanitarian aid efforts in Ukraine.

Governance Achievements

• Strengthened ABB’s circularity approach by defining clear KPIs for every stage of the product lifecycle.
• Launched EcoSolutions™ label providing transparency into the circularity value and environmental impact of a product.
• Enhanced risk-based approach promoting integrity across the organization.
• Implemented management sustainability incentives with yearly targets (at least 2 out of 3 annual individual leadership goals linked to sustainability goals).

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to travel and access limitations in certain jurisdictions (notably China).

Mitigation Strategies

• Focused on closing out corrective action plans, resulting in a risk closure rate significantly above the target.
• Adjusted planning for 2023 to incorporate additional assessments remaining from 2022.

Supply Chain Management

Supplier Audits: 58 on-site assessments in 2022

Responsible Procurement

• ABB Supplier Code of Conduct
• Sustainable Supply Base Management (SSBM) program
• Conflict minerals management program

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products and services.

Reporting Standards

Frameworks Used: GRI Standards (2021), EU Non-Financial Reporting Directive (NFRD), SASB, EU Taxonomy, TCFD Recommendations, UN Global Compact

Certifications: ISO 14001, ISO 50001, ISO 45001

Third-party Assurance: KPMG AG

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• EcoSolutions™ labeled products
• Energy-efficient motors and drives
• Electric vehicle charging systems
• Automation technologies

Awards & Recognition

• Industry Gender Equality Award 2021 (ABB Sweden)

Environmental Metrics

ESG Focus Areas

• Climate change
• Resource efficiency
• Social progress
• Integrity and transparency

Environmental Achievements

• Reduced own operations scope 1 and 2 GHG emissions by 76% since 2019
• Reduced total waste sent to landfill by 7% in 2023 compared to 2022
• 64% of energy consumption and 94% of electricity from renewable sources in 2023
• Helped customers avoid 74 megatons of CO2e emissions in 2023

Social Achievements

• Increased proportion of women in senior management positions to 21.0% (from 17.8% in 2022)
• Reduced lost-time injury frequency rate (LTIFR) by 9% to 0.13
• Employee engagement score of 77/100 in 2023
• Community spending of $11.5 million and ~4,800 person-days volunteered in 2023

Governance Achievements

• Updated ABB Code of Conduct and Supplier Code of Conduct
• Enhanced anti-bribery and corruption controls
• Completed first year of Deferred Prosecution Agreement (DPA) with US Department of Justice and Securities and Exchange Commission

Climate Goals & Targets

Environmental Challenges

• Geopolitical instability
• Economic slowdown (particularly in China)
• Shortage of qualified human resources
• Availability of components and raw materials
• Cybersecurity incidents

Mitigation Strategies

• Evaluation and quantification of exposure to geopolitical risks
• Balanced supplier base across geographies
• Identification of growth areas and cost reduction measures
• Agile manpower planning and talent development programs
• Development of alternative sourcing strategies
• Cybersecurity assessments and remediation

Supply Chain Management

Supplier Audits: 118 on-site audits in 2023

Responsible Procurement

• Updated Supplier Code of Conduct
• Sustainable Supply Base Management (SSBM) program

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (floods, storms)

Transition Risks

• Policy, legal, and market risks from transition to lower-carbon economy

Opportunities

• Increased demand for energy-efficient and low-carbon products and solutions

Reporting Standards

Frameworks Used: GRI Standards, TCFD Recommendations, SASB disclosures, UN Global Compact, EU Taxonomy regulation, Framework

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 8 (Decent work and economic growth)
• Goal 9 (Industry, innovation, and infrastructure)
• Goal 13 (Climate action)

ABB's technologies and solutions contribute to these goals through electrification, automation, energy efficiency, and emissions reduction.

Sustainable Products & Innovation

• ABB Dynafin™ (electric propulsion system)
• IE5 SynRM Increased Safety motor
• Expanded robot range

Awards & Recognition

• EcoVadis Gold medal
• 2023 Global Water Awards – Smart Water Project of the Year
• AAA MSCI ESG rating

Environmental Metrics

ESG Focus Areas

• Diversity and Inclusion
• Decarbonization
• Sustainability
• Safety
• Ethical Design

Environmental Achievements

• Reduced fuel consumption by 5-10% through weather routing (BW LPG)
• Cut diesel use by 1.5 million liters annually and CO2e emissions by 4,000 metric tons in Auckland with electric ferries
• Development of energy-efficient power and propulsion systems for naval platforms with lower or zero emissions
• Development of ABB Dynafin, a cycloidal-type propulsor with up to 85% propulsion efficiency and up to 22% fuel consumption reduction

Social Achievements

• Launched initiatives to increase female representation in the maritime industry (Linsen Nambi)
• Implemented programs for employee wellbeing and stress management (Linsen Nambi)
• Adopted UN Women's Empowerment Principles to promote gender equality
• Focus on ethical design principles in automation technology

Governance Achievements

• Acquisition of DTN’s shipping business to expand digital portfolio
• Collaboration with various stakeholders (governments, organizations, companies) to promote sustainability and decarbonization
• Participation in CharIN working groups to develop MCS charging standard
• Implementation of robust quality-control processes and industry best practices

Climate Goals & Targets

Environmental Challenges

• Uncertainty around availability and cost of alternative future energy modes
• Talent shortage in the maritime industry, particularly among young people
• Slow adoption of new technologies in some parts of APAC
• Negative perception of the maritime industry among young people
• Lingering prejudices against diversity in the maritime industry
• Climate change leading to more severe weather events
• High cost of finance in South Africa hindering growth of the shipping industry
• Slow progress in enacting legislation in South Africa
• Need for infrastructure changes to adapt to uncrewed vessels
• Potential for technology failures, cyber-attacks, and job losses with autonomous vessels
• High ramp rates on generator loading negatively impacting fuel efficiency and emissions (Polaris)

Mitigation Strategies

• Electrification as a solution to overcome uncertainty around energy infrastructure
• Initiatives to attract young people to the maritime industry (Linsen Nambi)
• Collaboration with stakeholders to accelerate adoption of new technologies
• Promoting positive stories and best practices in the maritime industry
• Investing in diversity and inclusion projects
• Weather routing and voyage optimization to mitigate risks from severe weather
• Government and private sector collaboration to address funding challenges
• Development of autonomous vessel policy with cyber insurance
• Development of new technologies to address challenges in autonomous vessels
• Use of load bank or battery energy storage to reduce methane slip in LNG-powered icebreakers
• Implementation of AI technology to improve accuracy and efficiency in container handling
• Development of standardized solutions for electric vessels (ROBOSHIP)

Supply Chain Management

Responsible Procurement

• Collaboration with sub-suppliers for Onboard DC Grid components

Climate-Related Risks & Opportunities

Physical Risks

• Severe weather events

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products and services

Reporting Standards

Frameworks Used: UNGC

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 13 (Climate Action)
• Goal 5 (Gender Equality)

Initiatives contribute to these goals through decarbonization, diversity and inclusion, and sustainable solutions

Sustainable Products & Innovation

• ABB Dynafin
• Onboard DC Grid
• Electric propulsion systems
• Weather routing services
• MCS charging standard

Awards & Recognition

• Honours for Diversity & Inclusion in Maritime