Global
Austria
Bulgaria
Croatia
Czech Republic
Denmark
Estonia
Finland
France
Germany
Greece
Hungary
Ireland
Italy
Latvia
Lithuania
Luxembourg
Netherlands
Norway
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Portugal
Romania
Russia
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Slovakia
Slovenia
Spain
Sweden
Turkiye
United Kingdom
Global
Argentina
Aruba
Bolivia
Brazil
Chile
Colombia
Costa Rica
Dominican Republic
Ecuador
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Guatemala
Honduras
Mexico
Panama
Peru
Puerto Rico
United States of America
Uruguay
Global
Bahrain
Israel
Jordan
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Lebanon
Oman
Pakistan
Palestine
Qatar
Saudi Arabia
South Africa
United Arab Emirates
Global
Australia
Bangladesh
India
Indonesia
Japan
Kazakhstan
Malaysia
New Zealand
Philippines
Singapore
South Korea
Sri Lanka
Taiwan (Chinese Taipei)
Thailand
Vietnam
Target definitions and methodologies
SUSTAINABILITY PILLAR | Target measure | Method |
---|---|---|
Low-carbon society | Reduce greenhouse gas (GHG) emissions (Scope 1 & 2) | ABB uses a market-based method to calculate and report Scope 2 GHG emissions. For purchased electricity and district heat, we have obtained local emission factors from suppliers.
For data prior to 2017, where necessary, we have sourced factors from the International Energy Agency’s “CO2 Emissions from Fuel Combustion 2013” database or from national or regional inventories. Emission factors for fuel used at ABB sites are sourced from the GHG Protocol’s “Emission Factors from Cross-Sector Tools” (March 2017). From 2017, emissions from ABB’s vehicle fleet are based on lease contract distances and emissions per kilometer factors per vehicle.
Scope 2 GHG emissions for electricity have also been calculated using the location-based method (source: IEA 2020). |
Preserving resources | Cover more ABB products & solutions with circularity approach | Statement of intent: In 2021, we defined the circularity approach that applies to all four Business Areas at ABB. We also developed the qualification/scoring system to evaluate our products & solutions against our circularity approach. In 2022, we will measure the 2019 baseline and will implement the methodology across the company. The value of sales of circular qualified products & solutions will represent 80% of total sales by 2030. The qualification process will cover design and supply considerations, manufacturing processes, use phase and end-of-life phase. |
Social progress | Reduce employee and contractor injuries resulting in time away from work. Aim for zero harm. | The LTIFR includes any work-related injury that causes the injured person to be away from work for at least one normal working day after the day on which the injury occurred (a working day can also be a shift). This rate excludes fatalities and serious injury incidents without any days lost. This covers employees and contractors. The rate is calculated per 200,000 worked hours. |
Social progress | Increase proportion of women in senior management | Senior leaders are defined by Hay grades 1-7. The indicator measures fixed % of female employees in senior leadership positions on December 31. |
Social progress | Improve employee engagement to achieve top-tier benchmark in our industry | The employee engagement score is calculated based on the yearly ABB Engagement Survey. The survey is entirely voluntary and results are confidential. Each year, we monitor how our scores are evolving relative to our past performance and relative to a collection of top-performing companies globally (Top20 Benchmark/Glint global norm). |
Preserving resources / Social progress | Cover supply spend in focus countries with SSBM approach
This target is divided into two phases:
Phase 1 (2021-2025): 80% of the high-risk supply spend in focus countries will be covered by SSBM approach
Phase 2 (2026-2030): 80% of the supply spend in focus countries will be covered by SSBM approach | For Phase 1 (focus on high-risk spend): % high-risk spend in focus countries covered by SSBM = (total high-risk spend covered by SSBM)/(total high-risk spend in focus countries) x 100
"Spend" = Spend in reporting year on suppliers that have been assessed in past 3 years by SSBM/SSDP ( 2019, 2020 & 2021) – for reporting year 2021 "High risk spend" = Spend on high-risk MDF code materials from the focus countries "High risk MDF code" = MDF code with environmental risk and health & safety risk score more than or equal to ‘2’
For Phase 2: % spend in focus countries covered by SSBM = (total spend covered by SSBM)/(total spend in focus countries) x 100
"Spend" covers: Spend in reporting year on suppliers that have been assessed in past 5 years by SSBM |
Low-carbon society | Reduce GHG emissions with impactful suppliers | Statement of intent: The production of steel, aluminum, copper and plastic materials make up the bulk of the emissions in our supply chain. In 2021, we will pinpoint a selection of our main suppliers to engage with to reduce GHG emissions in our supply chain. Reducing GHG emissions in the supply chain for these materials can be achieved by switching to a higher recycled content, a low-carbon primary material, or low-carbon transportation between tiers of suppliers. |
Preserving resources | Send zero waste to landfill while developing capacity to prevent waste generation | Applies to non-hazardous manufacturing waste that is disposed of directly into landfill or incineration without energy recovery, except where local legal requirements impose landfilling, or where alternative waste disposal infrastructure does not exist. |
Integrity & transparency | Apply ABB Code of Conduct-based approach to projects and counterparties | 2021 initial steps:
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Social progress | Establish common programs for community engagement | In 2022:
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Integrity & transparency | Defined ESG targets as a necessary “boundary condition” for awards under the short-term incentive program, called the Annual Incentive Plan (AIP). This applies to Executive Committee members and senior leadership positions.
Safety KPI now also informs the individual component of AIP awards for the EC and senior leaders in operations. | The 2021 ESG “boundary condition” was the setting of plans in each ABB Division outlining the key actions and activities required to reduce or compensate for GHG Scope 1 and 2 emissions to achieve carbon neutrality in ABB’s own operations by 2030 (vs. a 2019 baseline). At the end of the year, the Board of Directors determined that the terms for this condition had been fully met.
The Governance and Nomination Committee (GNC) of the Board of Directors will review whether the company made sufficient progress at the end of the year to justify making the indicated AIP award. If, in the opinion of the GNC, insufficient progress has been made, the AIP award may be reduced on a discretionary basis by the Compensation Committee (CC). |
Integrity & transparency | ABB Supplier Code of Conduct compliance in procurement terms & conditions | 2021 initial steps: Prepared stronger integrity and sustainability clauses for agreements/terms & conditions with counterparties, including:
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