Our value creation model

Key megatrends

We take a broad view of external developments including economic and geopolitical shifts. By relentlessly focusing on our purpose and continuing to deliver a leading offering in electrification and automation, we believe we are well positioned to capitalize on key megatrends and deliver superior value for our stakeholders in the long-term.

Our inputs for value creation

ABB’s main inputs for creating long-term value for our stakeholders can be categorized into the six main groups below. To drive sustainable value creation at ABB, we need to ensure that our inputs are not only balanced, but also complementary: we leverage our market leading position and access to financial inputs to continuously invest in research and development (R&D), our people, acquisitions and partnerships, and our manufacturing footprint and capabilities, including more sustainable and resource-efficient operations.

Our operating model – the ABB Way

With our company purpose at its core, the ABB Way empowers our divisions with full ownership and accountability for their strategies, performance and resources, while serving as the “glue” that holds our Group together. The ABB Way consists of two parts: “how” we will operate and create superior value in the future, namely with our business model; people and culture; brand and governance; and our purpose, “why” our company exists.

The ABB Way provides standardized policies, processes and systems, including portfolio, performance and risk management, as well as internal control and compliance.

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Outputs and outcomes

We understand value creation as the positive transformation of our financial and non-finan­cial inputs into outputs and outcomes that fulfill our purpose of enabling a more sustain­able and resource-efficient future. By focusing on holistic value creation, we deliver mean­ingful progress for our stakeholders, the environment and our organization. In everything we do, we reflect on how ABB impacts and is impacted by our society and the environment.

Stakeholders

Engaging with our stakeholders plays a foundational role in defining ABB’s strategic direction and driving our business. We are committed to consistent, transparent communication with our key stakeholder groups and aim to build trust and foster long-term responsible business practices.

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