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Our Sustainability Agenda is underpinned by a culture of integrity and transparency that we aim to embed across the value chain. At ABB, it’s not just about what we do - but how we do it - to provide value to businesses, communities, our customers and stakeholders around the world. We see integrity as part of our license to operate and we are committed to the highest standards of ethical business conduct and professional behavior.

 

 

Integrity

At ABB, we aim to embed integrity in everything we do. Our commitment to integrity is reflected in our ABB Code of Conduct and Supplier Code of Conduct, and is strengthened by our internal controls, standards and policies. We also have core Integrity & Regulatory Affairs procedures covering I&RA oversight and responsibilities, third-party management, data privacy, conflicts of interest and global trade.

Our global integrity program includes a strong training and communications component that combines e-learning and face-to-face training, and encourages personal accountability and responsibility.

To track the effectiveness of our integrity-related initiatives, we utilize data analytics and conduct transaction monitoring.

 

 

Responsible sourcing

At ABB, we expect our suppliers to adhere to the same high social, environmental and human rights standards as we do. All our suppliers are required to follow ABB’s Supplier Code of Conduct or apply a similar set of sustain­ability policies and procedures.

We help our suppliers improve their sustain­ability performance through our Sustainable Supply Base Management (SSBM) program. We aim to have our SSBM cover at least 80% of our spending on high-risk suppliers in focus countries by 2025 and 80% of all spending by 2030. In 2023, our SSBM covered 42% of spending on high-risk suppliers in focus countries. 1

We are working towards ensuring that our products do not contain Conflict Minerals. In partnership with our suppliers, we are committed to using in our products only tin, tungsten, tantalum and gold which has been legally and ethically sourced. In 2023, we extended our focus to cobalt and, over time, will include other minerals that pose social and environmental risks.

1 Current focus countries: Argentina, Brazil, Bulgaria, China, Colombia, India, Indonesia, Malaysia, Mexico, Peru, Poland, Saudi Arabia, South Africa, Thailand, Türkiye and Vietnam.

 

 

Executives' sustainability incentives

ABB promotes alignment between its executives and its Sustainability Agenda by incorporating sustainability measures into its Annual Incentive Plan (AIP) and its Long-Term Incentive Plan (LTIP).

Annual Incentive Plan

Under the AIP, at least two sustainability-related performance goals are included within the individual measure for each member of ABB’s Executive Committee (EC). The individual measure has a weighting of 20% of the executive’s AIP.

Long-Term Incentive Plan

One of the three performance measures under the LTIP is based on achievement of a corporate sustainability target and carries a weighting of 20%. The LTIP is awarded to around 100 executives, including EC members and division presidents. Vesting under the LTIP is subject to the achievement of the plan's specific targets over a period of three years.

 

 

 

 

More on our Sustainability Agenda