ABB集團ABB Ltd （ABB） 2021年可持續發展報告「NYSE」.pdf

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1、SUSTAINABILITY REPORT 2021From ambition to actionContentsSustainability at ABB01CEO message04Sustainability at ABB07ABB ecosystem12Approach to reporting16Progress against targets19Awards&achievements22Low-carbon society02We enable a low-carbon society24Customer emissions26ABB emissions33Emissions in

2、 the supply chain37Preserving resources03We preserve resources39Circularity41Waste46Right materials48Social progress04We promote social progress50Safety52Diversity&inclusion54Employee engagement score57Community engagement58Human rights64Integrity&transparency05We act with integrity&transparency69In

3、tegrity71Responsible sourcing75Senior management sustainabilityincentives81Tables&figures06Summary of GRI indicators84SASB table98EU taxonomy100Experience ourinteractive micrositeSUSTAINABILITYAT ABBLOW-CARBONSOCIETYPRESERVINGRESOURCESSOCIALPROGRESSINTEGRITY&TRANSPARENCYTABLES&FIGURESABB SUSTAINABIL

4、ITY REPORT 20212Sustainability at ABB01CEO message04Sustainability at ABB07ABB ecosystem12Approach to reporting16Progress against targets19Awards&achievements22SUSTAINABILITYAT ABBLOW-CARBONSOCIETYPRESERVINGRESOURCESSOCIALPROGRESSINTEGRITY&TRANSPARENCYTABLES&FIGURESABB SUSTAINABILITY REPORT 20213CEO

5、 messageDear Stakeholders,One year into ABBs 2030 sustainabilitystrategy,we are off to an excellent start inthe pursuit of our ambitious targets.Compared with our baseline year of 2019,we have cut our greenhouse gas(GHG)emissions by 39 percent and reducedlost time from injuries by 44 percent.Lastyea

6、r,we recorded no work-related fatalitiesfor the first time since 2011.We alsoincreased the number of women in seniormanagement positions to 16.3 percent,upfrom 13.5 percent a year ago,in line with ourgoal of having 25 percent of seniormanagement roles filled by women by 2030.Alongside these headline

7、 achievements,we made strong progress in laying thefoundations to embed sustainability acrossall of our Divisions as well as our value chain.Our 2030 GHG emissions reduction targetwas validated by the Science Based Targetsinitiative(SBTi)as being in line with the 1.5C goal of the Paris Agreement.We

8、also joinedthe SBTis Business Ambition for 1.5C,an urgent call to action from a global coalition ofUnited Nations agencies and business and industry leaders,in partnership with the“Raceto Zero”campaign.Our participation in this initiative reinforces our longstanding supportfor the 10 core principles

9、 of the Global Compact,which covers human rights,labor,environment,anti-corruption and other societal goals.Reducing customer emissionsWhile we are on track to achieve carbon neutrality by 2030,our greatest contribution tosustainable development is through our offerings to customers.By 2030,our targ

10、et isto help our customers reduce their annual GHG emissions by at least 100 megatons,equalto the annual emissions of 30 million combustion cars.In 2021,we identified a basket of products,services and solutions from our portfolio thatdeliver substantial reductions in GHG emissions of our customers.B

11、ased on sales of ABBofferings from this basket in 2021,we calculated that they will enable our customers toreduce their GHG emissions by 11.5 megatons after the first year.The methodology forthis assessment has been verified by a third party.We are well on the way to enabling ourSUSTAINABILITYAT ABB

12、LOW-CARBONSOCIETYPRESERVINGRESOURCESSOCIALPROGRESSINTEGRITY&TRANSPARENCYTABLES&FIGURESABB SUSTAINABILITY REPORT 20214customers to deliver annual savings of 100 megatons of GHG emissions by 2030.In thecoming years,we expect savings of GHG emissions from our offerings to increase as newproducts and so

13、lutions are added to the basket.ABB has assessed the extent to which our activities are reflected in the EuropeanUnions new classification system for sustainable economic activities,known as the“EU taxonomy.”We found that 36 percent of our revenue in 2021 was eligible under theobjective of“climate c

14、hange mitigation.”We consider this to be a significantunderestimate of the contribution that our products,solutions and services make inreducing our customers carbon footprint and in aligning their activities with theEU taxonomy.We estimate that a further 31 percent of ABBs revenue could be attribut

15、edto solutions that are indirect enablers of climate change mitigation,which would meanthat 67 percent of our revenue comes from solutions that mitigate climate change(seeABBs EU taxonomy disclosure).Towards circular business modelsA second goal of our 2030 sustainability strategy is to preserve res

16、ources at every stageof the value chain.In December 2021,we unveiled a new company-wide approach to drivecircularity in our own,our customers and our suppliers operations.By 2030,at least80 percent of ABBs products and solutions will be evaluated against a clear set of keyperformance indicators(KPIs

17、),corresponding to each stage of the product lifecycle.We will also send no waste to landfill,wherever this is compatible with local conditions.Today,40 percent of our around 440 sites around the world are already sending zerowaste to landfill.Along with the actions we are taking to reduce carbon em

18、issions and preserve resources,we aim to promote social progress across our value chain as well as in the more than100 countries where ABB is present.Our human rights training program is embeddingawareness and expertise in all our businesses across the globe.We now run communityengagement programs i

19、n more than 40 countries where we do business,providingsupport for education,diversity and inclusion,poverty alleviation and disaster relief.We continued to train,coach and assess selected high-risk suppliers on sustainabilitytopics,keeping us on track towards our goal of covering 80 percent of supp

20、ly chain spendin focus countries by 2030.Building safe,equitable and inclusive working environmentsOur highest priority at ABB is the safety of our people.In 2021,we reduced the number oflost-time injuries per 200,000 hours worked to 0.14 from a 2019 baseline of 0.25.Our highlevel of preparedness al

21、so helped us protect most of our people from COVID-19 and keepour operations running.Tragically,we lost several colleagues to COVID-19.On behalf ofABB,I extend our deepest sympathies to their families.As part of our commitment to establish a more inclusive and equitable workingenvironment,we not onl

22、y increased the proportion of women in senior managementSUSTAINABILITYAT ABBLOW-CARBONSOCIETYPRESERVINGRESOURCESSOCIALPROGRESSINTEGRITY&TRANSPARENCYTABLES&FIGURESABB SUSTAINABILITY REPORT 20215positions,as mentioned above,but we also launched a new gender-neutral parental leaveprogram for all employ

23、ees around the world.To drive the achievement of our sustainability goals,we are progressively integrating KPIsfor sustainability into our performance management planning.Our Business Areas nowreport on these in conjunction with their financial KPIs.Sustainability KPIs are also part ofour senior man

24、agement incentives,and a selection of KPIs is included in our quarterlyfinancial reports.Finally,we launched our Sustainability Changemaker Award,inviting our people to submitideas and innovations that support the achievement of our 2030 sustainability goals.On behalf of the ABB Executive Committee,

25、I want to thank our people for their excellentperformance in 2021 and all of our stakeholders for their collaboration,support and trust.Together,we are leading the way to a sustainable future.Best regards,Bjrn RosengrenChief Executive OfficerSUSTAINABILITYAT ABBLOW-CARBONSOCIETYPRESERVINGRESOURCESSO

26、CIALPROGRESSINTEGRITY&TRANSPARENCYTABLES&FIGURESABB SUSTAINABILITY REPORT 20216Sustainability at ABBAbout ABBABBis a leading global technology company that energizes the transformation ofsociety and industry to achieve a more productive,sustainable future.By connectingsoftware to its electrification

27、,robotics,automation and motion portfolio,ABB pushes theboundaries of technology to drive performance to new levels.With a history of excellencestretching back more than 130 years,ABBs success is driven by about 105,000 talentedemployees in over 100 countries.What sustainability means to ABBSustaina

28、bility is central to ABBs Purpose and the value that we create for ourstakeholders.To us,sustainable development means progress towards a healthier andmore prosperous world,today and for future generations.A sustainable society balances the needs of society,the environment and the economy.ABB achiev

29、es this by embedding sustainability in our value chain and by pushing theboundaries of technology to provide our customers with solutions that help preserve theearths natural resources while contributing to an economically vibrant,low-carbonsociety.Our focus on sustainability includes our commitment

30、 to responsible business practices.ABBs corporate governance and operating model are underpinned by integrity andtransparency.Promoting social progress for our people and in the communities in whichwe operate is central to our Purpose and our identity as a company.ABBs 2030 sustainability strategypo

31、sitions our company to address the worldsgreatest challenges.As a technology leader,we focus on those areas where we can makethe biggest impact:enabling a low-carbon society,preserving resources and promotingsocial progress,while complying with relevant regulations and applying our ownstandards wher

32、ever we operate.To meet our 2030 sustainability targets,we are takingaction across the value chain because we believe we can have a greater impact by actingin coordination with our customers,suppliers and other stakeholders.ABB has also assessed how its strategy and business could be affected by cli

33、matechange.Based on the various scenarios,we consider it most unlikely that climate changewould pose an existential threat to our business.In 2021,we initiated our 2030 sustainability strategy by establishing new sustainabilitygovernance structures,by beginning to work towards our new targets,and by

34、 carryingout pilot studies for additional new targets.In the course of the year,concerted effortswere made to build awareness among our stakeholders of the scope of our ambitions.SUSTAINABILITYAT ABBLOW-CARBONSOCIETYPRESERVINGRESOURCESSOCIALPROGRESSINTEGRITY&TRANSPARENCYTABLES&FIGURESABB SUSTAINABIL

35、ITY REPORT 20217Business model and value chainOur operating model,the ABB Way,has our Purpose at its core and serves as a frameworkfor implementing our strategy.By pushing the boundaries of technology and embeddingsustainability in everything we do,we are raising the performance of our market-leadin

36、gand empowered businesses to new heights.Alongside our values,governance frameworkand strong brand,the ABB Way is making ABB a more transparent and efficient company,driving a performance culture and creating value for all of its stakeholders.ABB value chainWhere 100 countriesEmployees105kTo whom Ut

37、ilities,industry,transport and infrastructureWhat Products,solutions and servicesInnovative technology and solutions,fair employment,tax contributions,community supportNeed for reliable and efficient power supply,increased productivity and lower environmental impactSocietyCapital$4.4bn3Investors and

38、 shareholdersEmployees and partnershipsCommunity spending$10.9mn,3,000 volunteer daysCommunities36%of our revenue (turnover)in 2021 was eligible under the objective of“climate change mitigation”4Need for products,solutions and servicesCustomersEffective tax rate 22.5%GovernmentsSpend$14 bnMaterial&S

39、ervicesSuppliers and contractorsR&D invested1$1.2bnServices1Non-order related R&D expenses2Adjusted Group effective tax rate,adjusted primarily to exclude gains and losses on sale of businesses3Consists of$2.7bn for the share buyback program and$1.7bn dividend payments4See chapter on EU taxonomySust

40、ainability governanceWith the organizational changes made in 2021,accountability for the implementation ofGroup requirements for health,safety and the environment(HSE)was transferred to theBusiness Areas and Divisions.The ABB Group Sustainability and HSE&Security functionsare responsible for the dev

41、elopment and coordination of the Groups policies andprograms that address matters related to health,safety,the environment and corporateresponsibility.These functions report directly to the Chief Communications andSustainability Officer,who is a member of the Executive Committee.SUSTAINABILITYAT ABB

42、LOW-CARBONSOCIETYPRESERVINGRESOURCESSOCIALPROGRESSINTEGRITY&TRANSPARENCYTABLES&FIGURESABB SUSTAINABILITY REPORT 20218Sustainability governanceSustainability Board(full Executive Committee)Board of DirectorsSustainability CouncilTopic-specific work groupsRemuneration and incentivesDivision-level impl

43、ementationBusiness-level performancemanagementHSE CouncilBoard of DirectorsThe Governance and Nomination Committee is responsible for overseeing corporatesocial responsibility(including health,safety and environment as well as sustainability),while ultimate responsibility for ABBs sustainability str

44、ategy,its sustainability targetsand its annual Sustainability Report lies with the entire Board of Directors.TheCompensation Committee ensures that ABBs remuneration policies are linked to theachievement of its sustainability targets.Sustainability Board(full Executive Committee)Implementation of th

45、e strategy is led by ABBs Sustainability Board,comprising the fullGroup Executive Committee.The Sustainability Board oversees policies and programs,reviews developments,and monitors progress towards targets.HSE CouncilThe four Business Area HSE managers and the corporate HSE&Security function workto

46、gether in an HSE Council that convenes twice yearly.The council reviews the functionssteering committees,approves and monitors the common Annual Plan,and assessesrisks and opportunities for the company.The work of the HSE Council is overseen by theHSE&Security Board,which meets twice yearly to perfo

47、rm a management review andconsists of the four Business Area Presidents,the CEO,the Chief Communications andSustainability Officer and the Head of Corporate HSE&Security.SUSTAINABILITYAT ABBLOW-CARBONSOCIETYPRESERVINGRESOURCESSOCIALPROGRESSINTEGRITY&TRANSPARENCYTABLES&FIGURESABB SUSTAINABILITY REPOR

48、T 20219Sustainability CouncilThe Sustainability Board is advised by a Sustainability Council,consisting of the GroupHead of Sustainability and representatives from our four Business Areas.TheSustainability Councils purpose is to ensure alignment across Business Areas on thestrategic direction of sus

49、tainability,common topics and sharing of best practices.Business-level performance managementEfforts within the Business Areas are supported by a strong set of policies andprocedures,along with sustainability leads in each Business Area and Division,responsible for driving the sustainability agenda

50、and for representing the Division inBusiness Area and Group-wide discussions.Topic-specific work groupsThematic work groups are appointed by the Sustainability Council to provide expertiseand develop methodologies on topics and initiatives linked to the sustainability targets.The work groups ensure

51、their operational definition and implementation action plans.They share best practices and propose relevant KPIs.Remuneration and incentivesIn 2021,as in prior years,safety was one of the KPIs in our management incentives.As of2021,additional sustainability KPIs are progressively being incorporated

52、into our seniormanagement incentives.For further information,please refer to“Senior ManagementSustainability Incentives”in this report.Division-level implementationBased on the Groups and Business Areas policies and procedures,each Division hasdeveloped its own sustainability governance and organiza

53、tional model,suited to itsoperational approach.In some Divisions,a network of“sustainability champions”wasformed and cross-Division workstreams have been created to ensure alignment and thesharing of best practices and to coordinate sustainability programs.ABB employs a worldwide network of HSE and

54、sustainability specialists,who report toeach of the Business Areas and support the Sustainability and HSE&Security functions.In each of the regions in which ABB operates,ABB employs HSE&Security advisors ormanagers.The country and regional specialists are supported by sustainability officersand heal

55、th and safety advisors.Overall,the sustainability network is supported by some600 full-time and part-time employees.The impact of ABBs sustainability network hasbeen expanded by our new strategy,which mobilizes ABB employees and all functionsacross our four Business Areas and throughout our corporat

56、e organization to act on oursustainability initiatives on a global basis.SUSTAINABILITYAT ABBLOW-CARBONSOCIETYPRESERVINGRESOURCESSOCIALPROGRESSINTEGRITY&TRANSPARENCYTABLES&FIGURESABB SUSTAINABILITY REPORT 202110In 2021,the Sustainability Council focused on deploying the action plans linked to themaj

57、or targets of ABBs 2030 sustainability strategy-in particular,ABBs goals for carbonneutrality,on developing ways to measure ABBs contribution to reducing our customersGHG emissions,and on further embedding circular economy principles within ourbusinesses.In 2021,our Sustainable Supply Base Managemen

58、t(SSBM)system replaced our SupplierSustainability Development Program(SSDP).The process is governed by a steeringcommittee and a working group comprised of representatives from the Business Areasand the Sustainability function.For further information,please refer to ResponsibleSourcing in this repor

59、t.Contribution to the Sustainable Development Goals(SDGs)Adopted by the member states of the United Nations in 2016,the 17 SDGs were developedas a blueprint for achieving peace and prosperity by 2030.ABB continues to align itssustainability strategy with the SDGs on which we can have the greatest im

60、pact.In 2021,ABB contributed to the global effort to meet the SDGsby supporting policiesthat promote the electrification of land-based and marine transport systems,improvements in energy efficiency in industry and buildings,and industry-specificsustainable technologies.For example,we are promoting h

61、igh electric charginginfrastructure targets(including for e-trucks)in the revision of the EUs Alternative FuelsInfrastructure Regulation(AFIR),which is currently in the legislative process.ABB also worked within industry associations to accelerate sustainable development.For instance,ABB is using it

62、s position as Chair of the Sustainable Mobility Task Forceat Orgalim,Europes technology industry association,to promote ambitiousdecarbonization and electrification commitments for road transport.ABB alsoparticipated in sector-specific working groups on energy,mobility,buildings and industry,which s

63、upported a major study on fighting climate change in Germany.ABBadditionally became a founding member of the Zero Emission TransportationAssociation,an advocacy organization in the United States.In 2021,as the worlds major economies launched plans for sustainable development inthe post-COVID-19 era,

64、ABB engaged in an assessment of the associated risks andopportunities.Initiatives assessed included Next Generation EU,the EUs Green Dealpolicy initiatives,and the Infrastructure Investment and Jobs Act in the US,among others.SUSTAINABILITYAT ABBLOW-CARBONSOCIETYPRESERVINGRESOURCESSOCIALPROGRESSINTE

65、GRITY&TRANSPARENCYTABLES&FIGURESABB SUSTAINABILITY REPORT 202111ABB ECOSYSTEMStakeholder engagementand material topicsOur approach to stakeholder engagement anddetermining materiality relies on meaningful dialogueand collaboration with stakeholders.This dialogue serves to clarify ABBs positions and

66、policies and,at times,to illuminatedifferent viewpoints.For further information,please visit the page on StakeholderEngagementon the ABB global website.ABBs 2030 sustainability strategy,the implementation of which began in 2021,is basedon new materiality matrices developed in 2020 through a comprehe

67、nsive externalstakeholder engagement process.The process provided a qualitative basis for thedevelopment of a matrix for each Business Area.As in the previous sustainabilityreporting cycle,we have left open the possibility of adjusting our sustainability strategyand its related KPIs to reflect signi

68、ficant changes in our material issues or ourstakeholders priorities.We plan to refresh the Group materiality matrix,which is availableonline here,on the basis of periodic engagement with our stakeholders.As the implementation of our strategy got underway,we continued to consult withinternal and exte

69、rnal stakeholders in 2021 to refine our sustainability targets.A directresult of this engagement was the confirmation of our decision to include an SASB tablein our 2021 Sustainability Report.We regularly interacted with our stakeholders,holdingsustainability-specific meetings with our investors,cus

70、tomers and suppliers in 2021.Wewill follow up with them in 2022 to review ABBs sustainability performance in 2021.Of special note,in 2021 we conducted an internal and external stakeholder review of ABBsparticipation in environmental,social and governance(ESG)rating schemes.In October2021,the ABB Sus

71、tainability Board decided to re-evaluate ABBs engagement with ESGrating agencies to focus on requests for information from those agencies that aredeemed the most important.As a result,we scheduled a series of interviews for late 2021and early 2022 to obtain input from our main stakeholders on which

72、ESG rating agenciesthey value most and which ESG criteria they expect us to report on.In addition to its dialogues with stakeholder groups,ABB consults an external stakeholderpanel for advice and input on sustainability issues.The panel also regularly reviews ourmateriality matrix and our annual Sus

73、tainability Report.ABB last engaged with this panelon the definition of our 2030 sustainability strategy at the end of 2020 and receivedpositive feedback on the framework and the targets.There was no further engagement in2021.As the implementation of the 2030 strategy progresses,we will re-define ou

74、rcollaboration with this panel.SUSTAINABILITYAT ABBLOW-CARBONSOCIETYPRESERVINGRESOURCESSOCIALPROGRESSINTEGRITY&TRANSPARENCYTABLES&FIGURESABB SUSTAINABILITY REPORT 202112In 2021,ABB engaged with key stakeholder groups in seven categories:CustomersOver the past year,we continued to meet regularly with

75、 customers to discuss how ABBsofferings can be used to reduce their greenhouse gas(GHG)emissions,preserveresources and meet other sustainability requirements.In addition to providing valuableinsights into our customers operations and their sustainability challenges,thesemeetings provided our experts

76、 with opportunities to share advice and served to buildand strengthen relationships of trust.Notably,our customers have also been reaching outto us to talk about their emissions;they expect leadership from us on this topic,which weprovide by supporting their sustainability journeys with our knowledg

77、e and solutions.Most cases are based on products that improve energy efficiency.An example would be avariable speed drive produced by our Motion Business Area.The use of variable speeddrives enables electric motors to adjust speed and torque during operations.When adrive is added to an existing moto

78、r,the electricity savings can be substantial.InvestorsIn 2021,we engaged with investors and analysts on the subject of ABBs 2030sustainability strategy and how our market-leading portfolio benefits from the fact thatESG concerns are driving demand for energy efficiency and automation.Among the mainE

79、SG topics of interest were ABBs own carbon footprint,our ability to support customersin reducing their emissions,our forward-looking corporate governance policies,includinglinking ESG to remuneration,and diversity and inclusion.SuppliersWe recognize that ABB can only be as sustainable as its supply

80、chain.Our Supplier Codeof Conduct clearly outlines our expectations,based on the 10 principles of the UN GlobalCompact,and is updated periodically to address new developments.In 2021,we began toengage our suppliers on the topic of their own GHG emissions.Through theseengagements,we seek to assess th

81、e status of their efforts on this front and to beginsetting appropriate emissions reduction goals.In 2021,we also continued to help oursuppliers improve their overall sustainability performance.To this end,we regularlyconduct on-site evaluations,provide training and engage in special projects to add

82、ressthe root causes of persistent challenges.We track their improvement through risk-basedmonitoring plans using our Sustainable Supply Base Management system.EmployeesIn 2021,ABB created the annual Sustainability Changemaker Award,which recognizesoutstanding ideas from individuals or teams who disp

83、lay a strong commitment tosustainable progress and inspire others to follow their example.The award covers each ofthe four pillars of ABBs 2030 sustainability strategy.In addition to seeking out new ideasSUSTAINABILITYAT ABBLOW-CARBONSOCIETYPRESERVINGRESOURCESSOCIALPROGRESSINTEGRITY&TRANSPARENCYTABL

84、ES&FIGURESABB SUSTAINABILITY REPORT 202113from new sources,the award aims to promote and embed sustainability across ABB;tofoster our entrepreneurial spirit and performance culture while maintaining clear ties toour values and Purpose;and to provide employees with more opportunities to participatein

85、 ABBs efforts to meet its 2030 sustainability ambitions.The winner of the 2021Changemaker Award will be announced in spring 2022.Also in 2021,we conducted our annual employee Engagement Survey.For furtherinformation,please refer to our Employee Engagement Score in this report.Public policyABB contin

86、ued to engage with civil society and government agencies on a number offronts to contribute to the ongoing global dialogue on sustainability.In 2021,ABB played an active role in the CEO Alliance,which promotes global targetsand standards for climate protection via its advocacy initiatives and indust

87、rial projects.ABB advocated for greater investment in electric distribution grids as a necessary step inthe decarbonization of the energy system,transport and the built environment.Thisadvocacy was pursued on multiple occasions by CEO Bjrn Rosengren,other membersof the Executive Committee and Divisi

88、on presidents.ABB engaged in advocacy on methane leak detection rules in the United States with thegoal of minimizing methane leaks from pipeline infrastructure through the deploymentof advanced leak detection technology.ABB highlighted the contribution of its products and technologies to a low-carb

89、onsociety in China while engaging with decision-makers in such forums as the Global CEOCouncils roundtable summit,China Development Forum,China International Fair ofTrade in Service,IBLAC Beijing,IBLAC Shanghai,International Consultative Conference onthe Future Economic Development of Guangdong Prov

90、ince(ICCFED),Chongqing MayorsInternational Economic Advisory Council(CMIA)and others.At the COP26 climate conference in Glasgow,ABB focused on communicating the goalsof its 2030 sustainability strategy as well as the technologies that help ABBs customersreduce their carbon footprints.CommunityABBs a

91、pproach to community engagement combines strategic corporate partnershipswith country-level projects to address local needs.In 2021,we contributed to more than400 community projects and charities worldwide,as well as a number of initiatives tohelp employees,contractors and communities address the ch

92、allenges of the COVID-19pandemic.Our employees and businesses donated approximately$10.9 million andaround 3,000 person days in volunteer work,often under challenging circumstances.ABBs 2030 sustainability strategy seeks to provide support for communities,among itsother objectives.For further inform

93、ation,please refer to“Provide Impactful Support forCommunity-Building Initiatives”in this report.SUSTAINABILITYAT ABBLOW-CARBONSOCIETYPRESERVINGRESOURCESSOCIALPROGRESSINTEGRITY&TRANSPARENCYTABLES&FIGURESABB SUSTAINABILITY REPORT 202114External partnershipsIn 2021,ABB supported multiple global initia

94、tives that are paving the way to carbonneutrality,including the Business Ambition for 1.5C and the Climate Groups RE100,EV100 and EP100 campaigns.Among our largest programs,we maintain a corporate-levelagreement with the International Committee of the Red Cross to support humanitarianassistance in c

95、onflict zones.ABB is a member of many international organizationsfocused on sustainable development.We are starting a process to evaluate theirclimate-linked goals in relation to our own.SUSTAINABILITYAT ABBLOW-CARBONSOCIETYPRESERVINGRESOURCESSOCIALPROGRESSINTEGRITY&TRANSPARENCYTABLES&FIGURESABB SUS

96、TAINABILITY REPORT 202115APPROACH TO REPORTINGSustainability reportingABB has reported in accordance with the GRI Standards(2021)for the period January 1,2021,to December 31,2021.The EU Non-Financial Reporting Directive(NFRD)and theSustainability Accounting Standards Board(SASB)provide the framework

97、 for oursustainability reporting.This report includes ABBs disclosures in accordance withEU taxonomy regulations.We report on ABBs material economic,environmental and social impacts and how wemanage them.We seek to maintain alignment between our sustainability reporting andchanges that arise in inte

98、rnational best practices including the GRI Standards.ABBs2030 greenhouse gas(GHG)emissions targets received approvalfrom the ScienceBased Targets initiative(SBTi)in 2021,confirming that they are in line with the 1.5Cscenario of the Paris Agreement.Omission from the material issues addressed in our r

99、eport does not mean an issue is notmanaged.ABB reports quarterly on a selection of our KPIs and annually on all of our KPIs.The annual Sustainability Report for 2021 was published on March 14,2022.Our future reportingIn addition to the above-referenced standards and directives,for 2022,ABBsSustainab

100、ility Report will also incorporate the framework developed by the Task Force onClimate-Related Financial Disclosures(TCFD).We will continue to review the ongoingevolution of sustainability disclosure standards and requirements and will consider thepossibility of incorporating additional reporting fr

101、ameworks into our sustainabilityreporting in the future.Reporting boundariesOur formal sustainability reporting system covers all ABB Group companies worldwide,including wholly owned subsidiaries and majority-owned joint ventures and direct andindirect participations(as listed in the 2021 ABB Annual

102、 Report,pages 72-73 and249-251).Additional disclosuresAll of ABBs policies,statements and declarations related to the topic of sustainability canbe found on our Groups website.SUSTAINABILITYAT ABBLOW-CARBONSOCIETYPRESERVINGRESOURCESSOCIALPROGRESSINTEGRITY&TRANSPARENCYTABLES&FIGURESABB SUSTAINABILITY

103、 REPORT 202116Certified ABB management system information 73percent of our manufacturing and service sites are covered by a certifiedenvironmental management system(ISO14001 or equivalent)75percent of our employees at manufacturing or service sites are covered by acertified occupational health and s

104、afety management system(OHSAS18000 orequivalent)21percent of employees at manufacturing or service sites are covered by a certifiedenergy management system(ISO50001 or equivalent)Changes in 2021ABB completed the divestment of its Mechanical Power Transmission Division(Dodge)to RBCBearings Inc.in the

105、 second half of 2021.Dodge is not included in our sustainability reporting for2021,except where specified.Also in the second half of 2021,ABB closed its acquisition of ASTI Mobile Robotics Group,aleading manufacturer of autonomous mobile robots(AMRs).The activities of ASTI are notincluded in our sus

106、tainability reporting for 2021,except where specified.Data collection processesTo measure and gather data from across ABB,we rely on a global,online data reporting system.The system is used to file reports on hazards,incidents,sustainability observation tours andenvironmental performance at every pr

107、oduction and service site,as well as a majority of ouroffice locations.It is also used to collect annual social data from every country.This centralizedreporting system simplifies data collection and facilitates greater transparency.The data in this report relating to health,safety and our social pe

108、rformance covers 96percent ofABB employees.Data relating to our environmental performance was sourced from 447 ABBsites and offices,covering approximately 95percent of employees.Data on the environmentalperformance of the remaining employees,who are located at non-manufacturing sites withlimited imp

109、acts,is generated by estimating energy,water and waste parameters pro rata.Calculation of energy and GHG dataABB uses the market-based method to calculate and report Scope 2 GHG emissions.Forpurchased electricity and district heating,we have obtained local emission factors from utilities.All GHGemis

110、sion factors for fuels used at our sites are sourced from the GHG Protocols“Emission Factors from Cross-Sector Tools”(March 2017).They include the emissions of CO2,CH4and N2O.Biogenic emissions from biofuels include only CH4and N2O emission factors.Global warming potential(GWP)factors for CH4,N2O an

111、d SF6follow the IPCCs AR5 report.Starting with 2017,emissions from ABBs vehicle fleet are based on lease contract distances andtank-to-wheel gCO2/pkm(grams of CO2per passenger kilometer).We applied lab-to-roaduplift factors from the International Council on Clean Transportation Europe to better refl

112、ectour vehicles real emissions on the road vs.the laboratory.SUSTAINABILITYAT ABBLOW-CARBONSOCIETYPRESERVINGRESOURCESSOCIALPROGRESSINTEGRITY&TRANSPARENCYTABLES&FIGURESABB SUSTAINABILITY REPORT 202117Scope 2 GHG emissions for electricity have also been calculated using the location-basedmethod(source

113、:International Energy Agency 2021).The results are provided for comparisonbelow.Scope 2 GHG emissions from electricityKilotons CO2eMarket-based:195Location-based:351GHG emissions from air travel are calculated using emission factors,with radiative forcing(RF),published by the UK Department for Busin

114、ess,Energy&Industrial Strategy(BEIS)in its2021 Government GHG Conversion Factorsfor Company Reporting.DefinitionsNet-zero vs.zero emissions vs.carbon-neutral“Net-zero”means that any carbon dioxide released into the atmosphere is balanced by anequivalent amount being removed.“Zero emissions”means tha

115、t no GHGs are released intothe atmosphere.Carbon-neutral means that carbon emissions can be offset by a reductionin emissions or a removal of carbon from the atmosphere,for instance through carbon sinks,which absorb more carbon than they emit.To achieve carbon neutrality,companies can buycarbon cred

116、its to cover the emissions they cannot eliminate.At ABB,one of our keysustainability targets is to achieve carbon neutrality in our own operations by 2030.We haveidentified areas that can reduce our CO2e emissions(see Greenhouse gas emissions below)by at least 80percent.We will make up the balance w

117、ith new solutions or carbon credits.Greenhouse gas emissionsGHG emissions refer to all emissions that have a warming effect on the earths surface bytrapping heat in the atmosphere.Carbon dioxide(CO2)makes up the vast majority of GHGemissions,but other gases like methane(CH4),nitrous oxide(N2O)and su

118、lfur hexafluoride(SF6)also have a warming effect.CO2,methane and nitrous oxide are released during thecombustion of fossil fuels,such as coal,oil and natural gas,to produce electricity.At ABB,weuse the metric measure CO2-equivalent(CO2e)to calculate our GHG emissions and progresstowards our emission

119、s reduction targets.Independent assuranceDNV Business Assurance Services UK Limited(“DNV”)has been engaged by ABB to provideindependent assurance for ABBs 2021 Sustainability Report.The assurance was completedusing DNVs assurance methodology,VeriSustain,and the report was evaluated foradherence to t

120、he principles of stakeholder inclusiveness,materiality,sustainability context,completeness and reliability.Performance datas scope was evaluated against the reliabilityprinciple.DNVs full Assurance Statement,including opinion,observations and basis ofopinion,is availablehere.SUSTAINABILITYAT ABBLOW-

121、CARBONSOCIETYPRESERVINGRESOURCESSOCIALPROGRESSINTEGRITY&TRANSPARENCYTABLES&FIGURESABB SUSTAINABILITY REPORT 202118Progress against 2030 targetsLow-carbon societyTarget text detailTarget2019Baseline*2021 StatusSupport our customers inreducing their annual CO2eemissions by 100 million tonsCO2e*100mill

122、iontonsCO2e/yearn/a11.5 MtAchieve ABB carbonneutrality*by 2030;reduceown emissions at least 80%80%668kilotonsCO2e39%(28%in 2021 alone)Deploy a systematic approachon CO2emissions reductionwith impactful suppliersn/a6,400kilotonsof CO2eThe target for the reduction of upstreamScope 3 emissions is not y

123、et defined.Theproduction of steel,aluminum,copper andplastic materials make up the bulk of theemissions in our supply chain.In 2022,wewill pinpoint a selection of our mainsuppliers to engage with to reduce the GHGemissions in our supply chain.ReducingGHG emissions in the supply chain forthese materi

124、als can be achieved byswitching to a higher recycled content,alow-carbon primary material,or low-carbontransportation between tiers of suppliers.*where a baseline applies*Approach to reporting*Savings in the year 2030 from solutions provided to customers 2021-30Preserving resourcesTarget text detail

125、Target2019Baseline*2021 StatusCover at least 80%of ABBsportfolio of products,solutions and services withcircularity approach80%n/aIn 2021,we defined our circularityapproach that applies to all four BusinessAreas at ABB.We also developed aqualification/scoring system to evaluateour products,solutions

126、 and servicesagainst our circularity approach.In 2022,we will calculate the baseline and willimplement the methodology across thecompany.The value of sales of products,solutions and services covered by ourcircularity approach is targeted torepresent 80%of total sales by 2030.Thequalification process

127、 will cover all fourSUSTAINABILITYAT ABBLOW-CARBONSOCIETYPRESERVINGRESOURCESSOCIALPROGRESSINTEGRITY&TRANSPARENCYTABLES&FIGURESABB SUSTAINABILITY REPORT 202119Target text detailTarget2019Baseline*2021 Statusphases of the product lifecycle(supply-manufacturing-use-end of life).Zero waste to landfill w

128、hiletaking measures to preventwaste generationZero wasteto landfillwherecompatiblewith localconditions17.6 KT(equivalentto 8.5%)12.6 KT(equivalent to 6.9%)*where a baseline appliesSocial progressTarget text detailTarget2019Baseline*2021 StatusZero harm through LTIFR00.2460.142Increase proportion of

129、womenin senior management roles25%11.70%16.30%Top-tier employeeengagement score(out of 100)n/a717480%of supply spend in focuscountries covered bySustainable Supply Base Mgmt(SSBM)-covering topics fromhuman rights to environment80%n/aUsing a risk-based approach,an interim2025 target has been set,focu

130、sing on high-risk suppliers in focus countries*Interim target for 2025(spend on high-risksuppliers in focuscountries*)80%n/a27%Common program forcommunity engagementCommonprogramsin placen/aCommon ABB program to be defined in2022*where a baseline applies*Argentina,Brazil,Bulgaria,China,Colombia,Indi

131、a,Indonesia,Malaysia,Mexico,Peru,Poland,SaudiArabia,South Africa,Thailand,Turkey,VietnamSUSTAINABILITYAT ABBLOW-CARBONSOCIETYPRESERVINGRESOURCESSOCIALPROGRESSINTEGRITY&TRANSPARENCYTABLES&FIGURESABB SUSTAINABILITY REPORT 202120Integrity and transparencyTarget text detailTarget2019Baseline*2021 Status

132、Include Supplier Code ofConduct(CoC)compliance inprocurement T&Csn/an/aPrepared stronger integrity andsustainability clauses for agreements,terms&conditions with counterparties toinclude:clauses with regards toacknowledgement of ABBs SupplierCode of Conductagreement to comply with anti-bribery,anti-

133、corruption(ABAC)andhuman rights laws and right to auditApply a CoC-based approachto projects and counterpartiesn/an/aNew procedures addressing both jointintegrity and human rights associatedwith third party managementTraining of our internal ABBstakeholders on the new processStart testing compliance

134、 with the newprocessManagement sustainabilityincentiveYearlyrotatingtargetn/aSafety target by DivisionABB CO2Scope 1&2 action plan byDivision as a boundary conditionAchievement against 2021 targets sethas been assessed by the Board ofDirectors Governance andNomination Committee andCompensation Commi

135、ttee and areconsidered as reached*where a baseline appliesSUSTAINABILITYAT ABBLOW-CARBONSOCIETYPRESERVINGRESOURCESSOCIALPROGRESSINTEGRITY&TRANSPARENCYTABLES&FIGURESABB SUSTAINABILITY REPORT 202121AWARDS&ACHIEVEMENTSPrize-winning sustainablevalue creationIn 2021,ABB reviewed the various ratings and a

136、cknowledgements it received in the courseof the year to determine which of them were most relevant to ABBs key stakeholders.Therecognition we received affirmed the validity of our Groups approach to sustainabilitywhile encouraging us to strive for even more rapid progress.The below awards and achiev

137、ements for 2021 are based on our 2020 performance and donot fully take into consideration the new ambitions and targets of our 2030 sustainabilitystrategy.Awards and achievements2021CSA by S&P Global(DJSI)Overall score 68/100 Sustainability Yearbook Member 2022(within the top 15%of industry)Sustaina

138、lytics Risk rating 17.8(Low risk)Management of material ESG issues is strongVigeo EirisRating 58/100 (in top 5 in industry)FTSE Russell4.2/5 ratingISS ESGPrime status B-EcoVadisGold medal (overall score 72/100)CDP Climate Change&Water Climate Change:B Water:B-MSCIAA ratingClean2002022 Clean200,rank#

139、20Learn more about the 2021 awards and achievements by visiting the following websites: ABBLOW-CARBONSOCIETYPRESERVINGRESOURCESSOCIALPROGRESSINTEGRITY&TRANSPARENCYTABLES&FIGURESABB SUSTAINABILITY REPORT 202122Low-carbon society02We enable a low-carbon society24Customer emissions26ABB emissions33Emis

140、sions in the supply chain37SUSTAINABILITYAT ABBLOW-CARBONSOCIETYPRESERVINGRESOURCESSOCIALPROGRESSINTEGRITY&TRANSPARENCYTABLES&FIGURESABB SUSTAINABILITY REPORT 202123STRATEGY PILLAR OVERVIEWWe enable a low-carbon societyWith our leading technologies,we are partnering with ourcustomers and suppliers t

141、o reduce their emissions,andwe are working to achieve carbon neutrality in our ownoperations by 2030.Target overview Supporting customers to reduce theirannual GHG emissions by 100 Mt Reducing ABBs own GHG emissionsby at least 80 percent Engaging systematically withimpactful suppliers on GHG emissio

142、nsreductionAhead of the COP26 climate conference in November 2021,ABB CEO Bjrn Rosengrenjoined the WEF Alliance of CEO Climate Leaders in signing an open letter togovernmentsproposing bold actions to achieve a net-zero economy by 2050.With ourscience-basedemissions reduction targets,we are part of t

143、he United Nations GlobalCompacts Business Ambition for 1.5C,as well as the UN-backed Race to Zero.We have committed to three initiatives of the Climate Groupof global companies EV100,RE100 and EP100.In line with these commitments,by 2030 we will electrify ourfleet of more than 10,000 vehicles,source

144、 100 percent of our electricity from renewables,and improve energy productivity across our operations.In 2021,we refitted three majorABB facilities under the Mission to ZeroTMprogram to reduce their carbon footprints andhave plans to refit a growing list of sites by 2024.We are also on track to elec

145、trify ourvehicle fleet,and we are engaging our suppliers on ways to evaluate and reduce theiremissions.While these are critical initiatives,we make our biggest impact through the leadingtechnologies we provide to our customers.These technologies are driving the energytransition and reducing the ener

146、gy consumption of industries,buildings,infrastructureand transport.Together,these sectors account for nearly 75 percent of global energyconsumption.SUSTAINABILITYAT ABBLOW-CARBONSOCIETYPRESERVINGRESOURCESSOCIALPROGRESSINTEGRITY&TRANSPARENCYTABLES&FIGURESABB SUSTAINABILITY REPORT 202124Commitment to

147、reducing emissions across the value chainScope 3Scope 1+2Scope 3Supply chain emissions reduction Impact mapping&actions Engage with major suppliers Supplier framework&Supplier Code of Conduct including environmental aspectsCarbon neutrality in own operationsReduce our scope 1 and 2 CO2 emissions by

148、at least 80 percent through mainly:Renewable electricity Non-emitting fleet Energy efficiencyFurther solutions being considered for remaining 20%,including appropriate compensation if no other optionSupport our customers in reducing annual CO2 emissions by 100Mt Most-impactful-cases basket constitut

149、ed Third-party validation New business cases to trigger more action&impact over time6686,400100,0002019 baseline2030 commitmentUpstreamABBDownstream1Greenhouse gas(GHG)emissions(kilotons CO2equivalent)2Identified areas where we can reduce our Scope 1 and 2 CO2emissions by at least 80 percent,and wec

150、ontinuously work on opportunities to do moreIn 2022,we will further develop the action plans of each of our Divisions for reducing ourScope 1 and 2 GHG emissions.Additionally,we will continue to expand and refine therange of high-impact products,services and solutions from our portfolio that deliver

151、significant reductions in GHG emissions for our customers.A working group is currentlydetermining the steps necessary to achieve effective results on the supply side andengaging with selected suppliers.ABBs activities aimed at enabling a low-carbon society support the achievement of theUnited Nation

152、s Sustainable Development Goals,in particular,goals 6,7,9,11,12,13 and 17.SUSTAINABILITYAT ABBLOW-CARBONSOCIETYPRESERVINGRESOURCESSOCIALPROGRESSINTEGRITY&TRANSPARENCYTABLES&FIGURESABB SUSTAINABILITY REPORT 202125CUSTOMER EMISSIONSSupporting our customers inreducing their annualgreenhouse gas emissio

153、nsTarget:By 2030,we will support our customers in reducingtheir annual GHG emissions by at least 100 megatonsWe are aiming to enable our customers to reduce their annual GHG emissions by anamount equivalent to that generated by 30 million internal combustion cars.Theseindirect,downstream GHG emissio

154、ns represent by far ABBs largest potential impact onclimate change.CASE STUDYDriving efficiencyimprovements for industry,cities and transportABBs Motion Business Area enables its customers to reduce their carbon emissions witha complete range of high-efficiency motors and drives.Found in a broad ran

155、ge ofapplications in industry and buildings,electric motors account for 45 percent of theworlds consumption of electricity,meaning that even small efficiency improvementsoffer the potential for huge energy savings.SUSTAINABILITYAT ABBLOW-CARBONSOCIETYPRESERVINGRESOURCESSOCIALPROGRESSINTEGRITY&TRANSP

156、ARENCYTABLES&FIGURESABB SUSTAINABILITY REPORT 202126We intend to achieve this target by equipping our customers with innovative solutionsfrom all areas of our business.Our portfolio includes such energy-efficient innovations asrobots equipped with regenerative braking and software for smart energy m

157、anagement,electric propulsion systems that can substantially reduce the emissions of ships,andcutting-edge technologies to detect methane leaks.Our advanced automation,digitalization and electrification solutions support traditionally energy-intensiveindustries on their journey to more sustainable o

158、perations.Among our most important technologies for reducing energy consumption are ourintelligent motionsolutions,including variable speed drivesfor electric motors,which enable significant electricity savings.We also facilitate the reduction of emissionsfrom cars,buses and heavy trucks with our ma

159、rket-leading portfolio of infrastructuresolutions for AC and DC electric vehicle charging.And,crucially,we support the energytransition with technologies that integrate power from intermittent renewable sourcesinto the electricity grid.In Switzerland in 2021,Model Group,a manufacturer of paper packa

160、ging,deployedenergy-efficient motors and drives from ABB to upgrade its paper machines.Papermaking is an energy-intensive process,and by replacing 36 motors and drives in itsfactory with new,IE4 super-premium-efficiency models and multidrives,Model Group hasreduced its energy consumption by nearly 9

161、00,000 kWh per year equivalent to thepower consumption of about 200 single-family homes.ABB Motions work with Yara,a mineral fertilizer producer in Norway,illustrates anotherway we are helping customers save energy.Yara has begun to refit its largest productionsite with high-efficiency motors and dr

162、ives from ABB;it has upgraded roughly 1,000 ofthe facilitys motors so far.In the projects next phase,another 2,500 motors will bereplaced with ultra-premium-efficiency IE5 SynRM motors and drives.The annual powersavings at the companys site in Porsgrunn are expected to be on the order of 32 to40 GWh

163、,resulting in an annual CO2emissions reduction of 12 to 19 kilotons.With these technologies,ABB is driving major efficiency improvements for industry,citiesand transport.In 2021,ABB Motion launched the Energy Efficiency Movement.The goal ofthis multi-stakeholder initiative is to raise awareness of h

164、ow advanced technologies canmitigate climate change and propel collective action to reduce global energyconsumption.SUSTAINABILITYAT ABBLOW-CARBONSOCIETYPRESERVINGRESOURCESSOCIALPROGRESSINTEGRITY&TRANSPARENCYTABLES&FIGURESABB SUSTAINABILITY REPORT 202127CASE STUDYAutomated solutions thatboost produc

165、tivity andreduce emissionsABBs Process Automation Business Areas integrated automation,electrification anddigitalization solutions have a central role to play in enabling more sustainable operationsin the heavy industries.For customers in process,marine and hybrid industries,ProcessAutomations offer

166、ings which include such ABB technologies as distributed controlsystems,marine propulsion,high-power rectifiers and data analyzers enable theiroperations to be more productive while reducing environmental impacts.In 2021,Process Automations Process Industries Division launched ABB Ability eMine a pur

167、poseful approach and an integrated portfolio of electrification and digital systemsto electrify mining processes,from hoisting and grinding to hauling and materialhandling.As an example of what it achieves,the pilot technology eMine FastCharge isset to be the worlds fastest and only fully automated

168、charging system for mining trucks,offering up to 600 kW of power when it comes to the market.Process Automation isworking closely with original equipment manufacturers Stubli and MEDATech to ensurethe requisite infrastructure is available for the sector to electrify a wide range ofequipment,from dri

169、lls to excavators and loaders.This infrastructure also includessolutions such as the eMine Trolley System,which can reduce diesel consumption,andthus GHG emissions,by up to 90 percent with trolley-assisted hauling,compared todiesel-only operations.Drawing on ABBs 130 years of experience in the minin

170、g industry,eMine providesintegral design planning that serves to maximize the value of electrification.By fullyintegrating electrification and digital systems from the mine to the port,eMine reducesCO2emissions as well as costs,promotes health and safety,and improves mineperformance.It is underpinne

171、d by ABB Ability MineOptimize,a platform that optimizesthe design of the plant or mine and facilitates the transition to the digital,CO2-free mineof the future.SUSTAINABILITYAT ABBLOW-CARBONSOCIETYPRESERVINGRESOURCESSOCIALPROGRESSINTEGRITY&TRANSPARENCYTABLES&FIGURESABB SUSTAINABILITY REPORT 202128In

172、 2021,we identified a basket of these and other high-impact products,services andsolutions from our portfolio that deliver substantial reductions in GHG emissions for ourcustomers.Based on sales of ABB offerings from this basket in 2021,we calculated thatthey will enable our customers to reduce thei

173、r GHG emissions by 11.5 megatons after thefirst year.The methodology for this assessment has been verified by a third party.Assuming a conservative 10-year lifetime for these offerings,the 11.5 megatons of annualsavings would lead to a cumulative reduction of more than 100 megatons ofGHG emissions o

174、ver the 2021-2030 period from products sold in 2021 alone.Applying the same logic to our 2030 target of 100 megatons of GHG emissions savedannually by our customers,the total impact of our products sold in 2030 will represent anemissions saving of over 1000 megatons(using the same 10-year average li

175、fetime).In thecoming years,we expect savings of GHG emissions from our offerings to increase as newproducts and solutions are added to the basket.The process of estimating emissions reductions related to the use of our products,services and solutions is not without its challenges.The precise impact

176、of ABBs solutionson GHG emissions depends heavily on the operational profile of a particular customersassets.In 2022,we will seek to improve our estimates,not only by developing strongerinternal GHG measurement methodologies,but also by working with our customers tofacilitate the joint management of

177、 emissions data.To understand the methodology forcalculating this target,please view the page 2030 targets explained in this report.As an example of how Process Automation is making shipping more sustainable,theBusiness Areas Marine&Ports Division is working to deliver an integrated electricpropulsi

178、on system and advanced vessel control technology for the pioneering eWolftugboat being built for Crowley Maritime in the United States.Commissioned to supportship arrivals and departures in Californias Port of San Diego,the eWolf will be the first all-electric,battery-powered harbor tug ever built a

179、nd operated in the US,and the third of itskind in the world.The solution will include a 6 MWh energy storage system,providingpower to the propulsion system almost instantaneously,making ship-assist operationsmore efficient and emission-free.The battery lets the tug complete a full day of typicalwork

180、 before needing to recharge,while the vessels all-electric propulsion system isexpected to eliminate the equivalent of over 3,100 metric tons of CO2emissions over itsfirst 10 years of use.SUSTAINABILITYAT ABBLOW-CARBONSOCIETYPRESERVINGRESOURCESSOCIALPROGRESSINTEGRITY&TRANSPARENCYTABLES&FIGURESABB SU

181、STAINABILITY REPORT 202129CASE STUDYInnovative charginginfrastructure that bringse-mobility to the massesABB Electrifications E-mobility Division is a world leader in electric vehicle charginginfrastructure,offering a full range of charging and electrification solutions for electricand hybrid-electr

182、ic cars,buses,vans and trucks.ABB entered the e-mobility market in2010 and as of December 31,2021,has sold more than 500,000 electric vehicle chargersacross more than 85 markets;these include over 25,000 DC fast chargers and 500,000 ACchargers,including those sold through Chinese EV charging company

183、,Chargedot,inwhich ABB holds a majority stake.As governments around the world enact policies that favor electric vehicles and chargingnetworks in order to combat climate change,ABB in 2021 launched the worlds fastest all-in-one electric car charger,the Terra 360,which can add up to 100 kilometers of

184、 range toa vehicle in less than three minutes.To meet the growing demand for EV charginginfrastructure that is fast,convenient and easy to use,the Terra 360 can simultaneouslycharge up to four vehicles,making it ideal for charging private vehicles as well as fleets ofcars,vans and trucks.ABBs high-p

185、ower chargers are being deployed around the world through the companyspartnerships with international charging operators such as IONITY and EVgo.Capable ofcharging both commercial and passenger vehicles that use any of the major chargingstandards,ABBs high-power chargers will support the new GRIDSER

186、VE Electric Highwaycharging network now being built in the United Kingdom.In 2021,ABB Electrification entered an agreement with Norways largest grocerywholesaler,ASKO,and its owner,NorgesGruppen,to supply charging infrastructure for itsgrowing fleet of electric trucks.ASKO plans to achieve zero-emis

187、sion distribution of itsgroceries by 2026.The first ABB HVC 150C(150 kW)high-power chargers are already inoperation at ASKOs distribution center in Oslo,charging two battery-electric trucks,withmany more to come.Deploying the ABB Ability offering of digital solutions and services,the chargers offer

188、web-enabled connectivity that allows network operators to performremote monitoring and configuration of charge points,thereby minimizing downtimeand increasing efficiency.Norway has itself installed more than 1,000 ABB fast chargersduring the last decade as part of its EV infrastructure.SUSTAINABILI

189、TYAT ABBLOW-CARBONSOCIETYPRESERVINGRESOURCESSOCIALPROGRESSINTEGRITY&TRANSPARENCYTABLES&FIGURESABB SUSTAINABILITY REPORT 202130To help our customers leverage the full benefits of our products and services for theiroperations,we stay in close communication with them whenever possible.OurEnergySave Cal

190、culatoris among the engagement tools that ABB relies on for thispurpose.It helps customers calculate how much energy and money they could save byusing variable speed drives from ABB.EnergySave offers a user-friendly way to comparemodern AC drive controls with traditional flow control methods found i

191、n a range ofapplications,such as pumps,fans and compressors.The algorithms deployed by thecalculator are refined and enhanced on an ongoing basis,with input from pump and fanmanufacturers,to ensure a high level of accuracy.The successful transition from traditional combustion engine vehicles to elec

192、tric vehicleswill depend on the deployment of reliable,widespread charging infrastructure.But building new charging stations can also require new connections to electric grids.Solutions from ABB can strengthen the distribution network by integrating renewables,energy storage and energy management,wh

193、ich can then be coupled with future-proofEV chargers that will be ready for the next generation of electric vehicles.CASE STUDYEnabling the manufactureof vital low-carbontechnologiesABBs Robotics&Discrete Automation Business Area serves a diverse range of industries,from automotive and electronics t

194、o logistics,with innovative solutions that help reduceGHG emissions.It achieves this by enabling higher productivity,reductions in productionwaste,and improvements in product quality and durability.In 2021,Robotics&Discrete Automations state-of-the-art PixelPaint robotic non-overspray technology was

195、 recognized with an Innovation and Entrepreneurship inRobotics&Automation Award for Outstanding Achievement.PixelPaints inkjettechnology conserves resources by eliminating overspray.By increasing the productivityof customized paint jobs by 20 to 100 percent,it significantly reduces the CO2emittedfro

196、m painting processes used by the automotive industry.SUSTAINABILITYAT ABBLOW-CARBONSOCIETYPRESERVINGRESOURCESSOCIALPROGRESSINTEGRITY&TRANSPARENCYTABLES&FIGURESABB SUSTAINABILITY REPORT 202131The Business Areas pioneering robotics,machine automation and digital services alsoenable a low-carbon societ

197、y by allowing ABBs customers to efficiently produce some ofthe key technologies needed to reduce emissions and save energy and resources.Forinstance,automated production processes developed by ABB and Absolicon haveradically reduced the cost of producing high-quality solar collectors,making it possi

198、blefor solar energy to compete with conventional heating.At Absolicons factory inHrnsand,Sweden,a robotic production line now uses two ABB robots to produce asolar collector panel every six minutes;previously,the line produced only three units a dayusing manual methods.The projects next phase will s

199、upply complete robotic production lines to manufacturersacross the globe to help make sustainable solar energy a viable form of heatingworldwide.The first installation has already been delivered to a customer in China,andframework agreements for new production lines have now been signed with busines

200、sesin a dozen countries.In 2021,ABB Robotics&Discrete Automation partnered with Intelligent City,which isseeking to transform the worlds foremost source of greenhouse gas emissions theconstruction industry.On the companys shop floor in Vancouver,Canada,ABB robotsprocess,handle and assemble large sec

201、tions of timber in a production line forprefabricated structural modules that can be used to construct buildings up to 18 storiestall.This solution also makes use of ABBs RobotStudio offline programming software toplan tasks and movements and to design the factory and the production line.Robotic aut

202、omation offers significant potential to enhance productivity,efficiency andmanufacturing flexibility throughout the construction industry,including automating thefabrication of modular homes and building components off-site,robotic welding andmaterial handling on building sites and robotic 3D printi

203、ng of houses and customizedstructures.As well as making the industry safer and more cost effective,robots areimproving sustainability and reducing environmental impact by enhancing quality andcutting waste.SUSTAINABILITYAT ABBLOW-CARBONSOCIETYPRESERVINGRESOURCESSOCIALPROGRESSINTEGRITY&TRANSPARENCYTA

204、BLES&FIGURESABB SUSTAINABILITY REPORT 202132ABB EMISSIONSAchieving carbon neutralityacross our operationsTarget:By 2030,we will achieve carbon neutrality acrossour own operationsWe have committed to neutralizing ABBs carbon footprint by 2030.From 2019 to 2021,we already reduced our own GHG emissions

205、 by 39 percent.In 2021,we reduced our GHGemissions by 28 percent.Our 2019 baseline for our Scope 1 and 2 GHG emissions was668 kilotons,and we have already identified areas where we can reduce these direct andindirect emissions by at least 80 percent by 2030.These areas include the use ofrenewable en

206、ergy,electrifying our entire vehicle fleet,and implementing energy-efficiencymeasures at our sites.Further solutions for the remaining emission will be explored.Inthe event that no other solutions are found,we will look for appropriate offset options.In 2021,we worked to translate ABBs target of car

207、bon neutrality in our own operationsand our commitments to the EV100,RE100 and EP100 initiatives,among others,intospecific programs and KPIs,for implementation by our Groups Business Areas andDivisions.In addition,we created an ABB-wide carbon emissions baselining andforecasting roadmap,which sets f

208、orth expected progress on a year-by-year basis ata granular level.CASE STUDYAn innovative arrangementto reduce ABBs carbonemissionsSUSTAINABILITYAT ABBLOW-CARBONSOCIETYPRESERVINGRESOURCESSOCIALPROGRESSINTEGRITY&TRANSPARENCYTABLES&FIGURESABB SUSTAINABILITY REPORT 202133Mission to Zero sitesFirst Miss

209、ion to Zero siteExisting sitesIn 2022,work is planned on facilities in China,India,Italy,Poland,Switzerland and the United StatesUnited StatesFinland(Porvoo)The Netherlands(Ede)Germany(Ldenscheid)SwitzerlandItalyPolandIndiaChina(Beijing)In 2021,we continued to improve the energy efficiency of ABB si

210、tes around the world.More than 100 energy-efficiency projects were implemented in 2021 across ABB,saving17.5 GWh of energy.Additional energy reviews and audits at both the Business Area leveland Group level are underway or scheduled.The results will be used to implementoperational and infrastructure

211、 changes to reduce energy consumption.Related projectsinclude installing energy management and monitoring systems,building on-site capacityto generate renewable energy,upgrading motors and drives,making changes toproduction processes and simply upgrading to LED lighting.Also in 2021,the ABB RealEsta

212、te functions energy savings program reaped a total of 83.5 GWh per year and$18.5 million in savings1between 2018 and 2021 from 243 completed,ongoing andABB Indias Distribution Solutions facility in Nashik(built in 1978)developed andimplemented a unique project in 2021 to reduce the sites carbon emis

213、sions,by installingfour photovoltaic power plants,with a capacity of 1,400 kWp,generating enough energyto cover up to 40 percent of the sites electricity needs.This installation,carried out in different steps and completed in November 2021,hasalready saved 1,570 tons of GHG emissions in 2021.ABB wil

214、l enhance this project bydeploying a digital building and energy management solution,to further optimize andminimize energy consumption and costs.In the course of making a major contribution to ABBs commitment to achieve carbon-neutral operations by 2030,the facility became the first of the approxim

215、ately10,000 factories that lie within the Nashik Industrial Area to be recognized with a goldcertification by the Indian Green Building Council.1The reported figures should be considered as an indication of the potential impact resulting from EE-projects within ABB worldwide and not as resulting fro

216、m project-specific measurement and verification(M&V)activities.SUSTAINABILITYAT ABBLOW-CARBONSOCIETYPRESERVINGRESOURCESSOCIALPROGRESSINTEGRITY&TRANSPARENCYTABLES&FIGURESABB SUSTAINABILITY REPORT 202134planned energy-saving projects in ABB buildings worldwide.Even considering thedecreasing emission i

217、ntensity of the energy purchased globally by ABB,these projectsenable us to cut our GHG emissions by 22.2 kilotons2per year.ABB electricity consumption and share of green electricity in 2021to 51%in 2021In total,ABB consumed3,500,000 gigajoules(GJ)of electricity in 2021We increased our share of cert

218、ified green and self-generated solar electricityfrom 31%in 2020The process of electrifying vehicle fleets across our Group is well underway.ABB is ontrack to fulfill its commitment to the EV100 initiative to electrify its fleet of more than10,000 vehicles by 2030,with actions currently ongoing acros

219、s the world,includingSweden and the United Kingdom.In 2021,44 percent of ABBs global new vehicle orderswere for either EVs or plug-in hybrid vehicles(PHEVs).Sweden and United Kingdom fleet conversion139 fully electric263 plug-in hybridSimilar initiatives are being planned or are underway at many add

220、itional ABB sites.Sweden 60%of fleet electrified666 company cars180fully electric15plug-in hybrid512company carsUnited Kingdom 38%of fleet electrified2Regardless of the related energy source,the CO2emissions resulting from energy savings are estimatedat a given emission intensity of 0.266 kilotons C

221、O2per GWh the average emission intensity of the ABBGroup in 2020(Source:ABB Sustainability Report 2020).SUSTAINABILITYAT ABBLOW-CARBONSOCIETYPRESERVINGRESOURCESSOCIALPROGRESSINTEGRITY&TRANSPARENCYTABLES&FIGURESABB SUSTAINABILITY REPORT 202135Our direct emissions of GHGs from on-site handling of sulf

222、ur hexafluoride(SF6),as wellas leakage of SF6from our production processes,were also addressed in a dedicated,global program.In total,we reduced ABBs direct emissions of SF6by 32 percent over thepast year.In 2021,we emitted 2.21 tons of SF6,down from 3.26 tons in 2020.CASE STUDYBlazing a trail to th

223、elow-carbon futureIn 2019,ABB launched the Mission to Zero program at its Ldenscheid,Germany site tomeet the rising demand for sustainable,future-proof smart buildings.Mission to Zeroprovides comprehensive consulting and delivery services,technology,and financing forfacilities seeking to reduce emis

224、sions and achieve carbon-neutral operations.The program continues to expand,with three additional sites added in 2021 Beijing(China),Porvoo(Finland)and Ede(Netherlands)all of which are running ABB digital andsmart energy management solutions.At present,and in addition to Nashik(India),theprogram is

225、onboarding ABB sites in Dalmine and Frosinone(Italy),Senatobia,Mebane,Jonesboro and Vega Baja(USA),Xiamen(China)and Schaffhausen(Switzerland).Whilethese examples illustrate how the Mission to Zero program will play a key role in helpingABB meet its commitment to carbon-neutral operations by 2030,its

226、 ultimate goal is tobuild on that success and make it available to our customers and suppliers in support ofthe global effort to mitigate climate change.The Mission to Zero program builds on that success and seeks to deploy replicable,scalable and profitable solutions worldwide,which can also be int

227、egrated with third-party solutions.The program enables commercial and institutional buildings to besmarter,safer and more sustainable via a bundled modular offering of digital productsand solutions that are easy to install and operate.Since many customers lack expertise inenergy management,ABB offer

228、s an end-to-end approach and one-stop shopping forbuilding automation and smart energy management solutions.These include ABBAbility Building Ecosystem,NeoGear low-voltage switchgear solutions and ABB AbilityEnergy and Asset Manager.SUSTAINABILITYAT ABBLOW-CARBONSOCIETYPRESERVINGRESOURCESSOCIALPROGR

229、ESSINTEGRITY&TRANSPARENCYTABLES&FIGURESABB SUSTAINABILITY REPORT 202136EMISSIONS IN THE SUPPLY CHAINEngaging with our suppliersto reduce their emissionsTarget:We engage with our suppliers to amplify ourimpact in reducing emissions across the supply chainTo enable a low-carbon society,we also need to

230、 reduce emissions in our supply chain.When developing our science-based target,we estimated GHG emissions in our supplychain and are now working with our commodity experts and suppliers to develop asystematic approach to reduce these emissions.We have set a science-based target tocut our overall Sco

231、pe 3 emissions by 15 percent by 2030,which will include importantcontributions from our suppliers.Over the course of the year,ABBs four Business Areas began preparing to engage withsuppliers on the topic of emissions.These preparations included forming dedicatedteams and establishing priorities and

232、action plans.Mapping potential impacts ofcommodities and processes in our supply chain,identifying the current performance ofmajor suppliers,and evaluating their existing or planned emission reduction programswill form the basis for further discussions and help us finalize our overall emissionsreduc

233、tion goal.Furthermore,ABB has built up its internal capacity to conductcomprehensive life cycle assessments(LCAs).These LCAs are revealing the totalcontribution of raw material sourcing to the overall carbon footprints of our products,while also pointing out where we can conduct meaningful intervent

234、ions with suppliers.ABBs supply chain emissions reduction efforts have implications for our business.Aboveall,they will lead to further review and evaluation of our suppliers positions and actionson sustainability topics.Eighty percent of our supply chain emissions(Scope 3)comefrom raw materials(62

235、percent)and transport(15 percent).The most important materialsfor our business are steel,aluminum,plastics and copper,in that order.For more information about ABBs comprehensive approach to supplier engagement,please refer to“Responsible Sourcing”in this report.SUSTAINABILITYAT ABBLOW-CARBONSOCIETYP

236、RESERVINGRESOURCESSOCIALPROGRESSINTEGRITY&TRANSPARENCYTABLES&FIGURESABB SUSTAINABILITY REPORT 202137Preserving resources03We preserve resources39Circularity41Waste46Right materials48SUSTAINABILITYAT ABBLOW-CARBONSOCIETYPRESERVINGRESOURCESSOCIALPROGRESSINTEGRITY&TRANSPARENCYTABLES&FIGURESABB SUSTAINA

237、BILITY REPORT 202138STRATEGY PILLAR OVERVIEWWe preserve resourcesTo help preserve the earths resources for futuregenerations,ABB has defined a systematic,company-wideapproach to circularity.We seek to minimize the quantityof resources consumed and to keep resources in useacross the value chain.Targe

238、t overview Covering at least 80 percent of ABBproducts and solutions with circularityapproach Sending 0 waste from own operationsto landfill Ensuring 80 percent of supply spendin focus countries is covered by SSBMBy 2030,at least 80 percent of our products and solutions will be covered by ourcircula

239、rity approach and evaluated according to a set of KPIs,corresponding to eachstage of the product lifecycle.In our own operations,we will also send zero waste to landfill or to incineration withoutenergy recovery,wherever this is compatible with local conditions and laws.Today,40 percent of around 44

240、0 ABB sites around the world are already sending zero waste tolandfill.At the same time,we are making a concerted effort to identify our use of restricted orhazardous substances,which we aim to reduce and,where possible,eliminate from ouroperations.ABBs circularity approach will be extended to our s

241、uppliers as well.Through a range ofinitiatives that we are implementing across our supply chain,we will ensure that thematerials we use form part of our circularity approach,among other objectives.Forfurther information on other objectives related to our supply chain,please refer to“Responsible Sour

242、cing”in this report.SUSTAINABILITYAT ABBLOW-CARBONSOCIETYPRESERVINGRESOURCESSOCIALPROGRESSINTEGRITY&TRANSPARENCYTABLES&FIGURESABB SUSTAINABILITY REPORT 202139Our approach is built on principles that will drive circularity in our own operations andsimultaneously enable our customers to become more ci

243、rcular.By 2030,we willadditionally seek to develop innovations that will enable new,circular business models.These innovations will address all stages of a products lifecycle.All of our KPIs in this areawill be based on a clear and transparent scoring system that considers eight circularitylevers tw

244、o for each stage of the product lifecycle.This systematic,holistic approach willallow for continuous improvement and tracking of progress.For 2022,our main objective is to start the implementation of our circularity approach asfollows:Set up common governance rules for our circularity approach Conti

245、nue mapping our initial baseline Expand our assessment of each of the eight circularity levers across all fourBusiness Areas and set priorities in each DivisionSUSTAINABILITYAT ABBLOW-CARBONSOCIETYPRESERVINGRESOURCESSOCIALPROGRESSINTEGRITY&TRANSPARENCYTABLES&FIGURESABB SUSTAINABILITY REPORT 202140CI

246、RCULARITYCircularity approachTarget:80 percent of ABB products and solutions arecovered by our circularity approachABB circularity approachWHAT WE ENABLE Circular customer solutionsWHAT WE DO ABB circular operationsPARTNERSHIPS AND CULTUREOur comprehensive circularity approach is built around a fram

247、ework that drives circularityin our own operations and enables our customers to become more circular.By 2030,weaim to innovate towards new circular business models,covering all stages of the productlifecycle:We consider the entire product lifecycle at the design and sourcing stage.Ourgoal is to deve

248、lop products and solutions that can be produced in a resource-efficient manner that minimizes the use of virgin or hazardous materials.At thesame time,we ensure that our product design takes various aspects of circularityinto account,such as extended lifetime,repairability,modularity and recyclabili

249、ty,among others.In the production phase,we work to eliminate or recycle any waste generated byour processes and packaging.SUSTAINABILITYAT ABBLOW-CARBONSOCIETYPRESERVINGRESOURCESSOCIALPROGRESSINTEGRITY&TRANSPARENCYTABLES&FIGURESABB SUSTAINABILITY REPORT 202141 Once our products are in service,we hel

250、p our customers maximize the efficiencyand lifetime of their equipment.At the end of the product lifecycle,we seek to ensure that products can berefurbished whenever possible,or dismantled and recycled.Steel,aluminum,copper and plastics make up the majority of materials used in our products.Most of

251、these materials are reclaimable at the end of a products life,and wedesign our products with this in mind.Examples of how we cover the four stages of the circularityapproach at ABBProduct design and sourcingIn order to make our product design and sourcing processes more circular,in 2021,wecontinued

252、to implement a series of projects intended to identify fully renewable,recyclable or biodegradable resource inputs for our manufactured products.At ABBs sitein Porvoo,Finland,we are using post-consumer recycled(PCR)plastics for themanufacture of box supports and distance rings for our System Ideal r

253、ange of flush-mounted electrical boxes.The System Ideal components are made of up to 50 percentrecycled plastic,depending on the application.Thanks to circular product designs likeSystem Ideal,in 2021,the total weight of recycled materials used in Porvoo was 64,000 kg,resulting in a reduction of som

254、e 96,000 kg of GHG emissions.We will continue to developand release new products made from PCR plastics.Also in 2021,at our site in Ede in theNetherlands,in partnership with Ultrapolymers BC,we began to use PCR plastics for theproduction of surface-mounted junction boxes.By the third year of this pr

255、oject,weexpect that each kilogram of recycled plastics used will result in an associated CO2ereduction of 1.5 kg.Production and packagingIn 2021,we carried out initiatives to make our production and packaging more circular.At our Ede site,for example,we made changes to ensure that input materials ar

256、e reusedto the fullest possible extent in our production processes.The materials left behind fromour injection-molding processes are now shredded and reused;excess materials that failto meet our production standards such as those generated when the productionequipment first starts up are collected a

257、nd shredded for reuse in non-critical items,such as marking jigs.At our Busch-Jaeger sites in Germany,we collected over 150 tons ofplastic production waste and sent it for recycling by a partner,Geba Compounding,afterwhich 43 percent was reused for production.Water is necessary in many of our produc

258、tion processes and,in 2021,we continued tooptimize our sites use of this vital resource.In India,for example,our site in Nelamangala,Bangalore,has put in place water reduction,water recycling and rainwater harvestingprocesses,among other conservation measures.The sites water management systemwas ass

259、essed by The Energy and Resources Institute(TERI)and certified as a“WaterPositive”factory.Water-saving initiatives such as these resulted in a reduction ofSUSTAINABILITYAT ABBLOW-CARBONSOCIETYPRESERVINGRESOURCESSOCIALPROGRESSINTEGRITY&TRANSPARENCYTABLES&FIGURESABB SUSTAINABILITY REPORT 20214212 perc

260、ent in ABBs total water withdrawals.Forty-seven percent of our water withdrawalswere from stressed watersheds and amounted to 1,252 kilotons for the year,down1.3 percent from 2020.Packaging materials represented another focus area in 2021.Initiatives such as ABB ProcessAutomations“Think Outside the

261、Box”program reduced the amount of cardboard used at theBusiness Areas site in Ossuccio,Italy,by an estimated 16.9 tons over the past year.Efforts toprocure sustainably produced cardboard,certified by the Forest Stewardship Council(FSC),will result in facilities such as ABB Electrifications plant in

262、Frosinone,Italy,using thesematerials exclusively starting in 2022.Use phaseOnce our products have been placed in service,we offer our customers a number of optionsto extend the lifecycle of their equipment.Retrofits,for example,extend the service life ofexisting drives and allow customers to replace

263、 only the essential components.By retainingthe equipments original cabinets and cabling,electrical components and automationsystems,retrofits enable customers to modernize their machinery with a minimum ofinvestment,waste and interruption to normal operations.Digitalization plays an important role i

264、n augmenting the positive impact of our products andsolutions.Our digital solutions enable our clients to extend the lifetime of their assetsthrough optimization,remote operations and preventative maintenance.For example,one ofour digital solutions,ABB AbilityTMGenix,brings together the combined pow

265、er of industrialanalytics and artificial intelligence to help our customers unlock the value of contextualizeddata,improve industrial productivity and achieve operational excellence.We also continued to explore new circular business models,such as outcome-based servicemodels.Through this approach,cu

266、stomers could contract with ABB to deliver a specified levelof cost savings,energy efficiency,water efficiency or raw material efficiency,among otheractionable outcomes that relate to our domain expertise.End-of-life phaseIn 2021,we worked to incorporate products at the end of their lifecycle into o

267、ur circularityapproach by joining forces with sustainable recycling specialists and other partners.Forexample,in the Netherlands,ABB and HKS Metals forged a partnership that helps close theloop in the lifecycle of an electric motor.Through this agreement,HKS will collect and recycleobsolete ABB elec

268、tric motors and then send the recovered raw materials to smelters acrossEurope to be melted down and made available to ABB for reuse in new products includingnew motors.In Sweden,ABB,Stena Recycling and SCA are also working together on motor recycling.Through this partnership,11 tons of decommission

269、ed motors have been processed by StenaRecycling.Nearly 100 percent of the material weight of these motors has been recycled,avoiding an estimated 34 tons of GHGemissions.In addition,an estimated 326 MWh ofenergy and more than 100,000 cubic meters of water were saved by not having to mine newmetals.S

270、USTAINABILITYAT ABBLOW-CARBONSOCIETYPRESERVINGRESOURCESSOCIALPROGRESSINTEGRITY&TRANSPARENCYTABLES&FIGURESABB SUSTAINABILITY REPORT 202143In Italy,we collaborated with INTERSEROH TSR Italy for the collection and management ofour products at the end of the lifecycle.Through this collaboration,ABB Elec

271、trificationsSmart Power Division can guarantee its customers that,when they replace an ABBproduct at the end of its lifecycle with a new ABB product,the discarded ABB product willbe collected and more than 80 percent of its components will be recycled.Additionally,INTERSEROH TSR Italy will issue the

272、 customer a certificate of proper waste management,specifying the calculated amount of avoided GHG emissions.Over the last 25 years,thousands of used robots have been given a second life by ABBsremanufacturing teams,which refurbish and upgrade them.Peripheral equipment,suchas controllers and manipul

273、ators,is also refurbished to“like-new”condition at ABBsGlobal Remanufacture&Workshop Repair Centers.Remanufacturing enables existingrobot users to sell redundant robots to ABB rather than scrapping or mothballing them.A lifecycle assessment undertaken in 2021 revealed that the process of refurbishin

274、g arobot releases roughly 75 percent fewer GHG emissions compared with manufacturing anew robot.CASE STUDYReinvigorating oldequipment with newretrofit solutionsAs part of ABBs commitment to cover 80 percent of products and services with itscircularity approach by 2030,we are working closely with par

275、tners,customers andsuppliers to extend the useful service life of equipment.As an example of this approach,in 2021,ABB Motions Services Division worked withMondi SCP,the largest wood processor and producer of pulp and paper in Slovakia,toimplement a retrofit solution for the ACS600 drive units used

276、in Mondis paper machines.The units were at the end of their lifecycle,so ABBs engineers helped Mondi determinethe optimal scope and timing for a program of modernization,based on the condition ofthe existing drives.Together,the two teams agreed on which hardware solutions andcontrol system updates t

277、o deploy before setting a detailed schedule for the installation.The retrofit solution was then carried out in just one week.SUSTAINABILITYAT ABBLOW-CARBONSOCIETYPRESERVINGRESOURCESSOCIALPROGRESSINTEGRITY&TRANSPARENCYTABLES&FIGURESABB SUSTAINABILITY REPORT 202144By offering thoughtfully tailored ret

278、rofits to extend the lifecycle of existing drives,ABBenables its customers to replace only the necessary components,while retaining most oftheir existing infrastructure,cabinets and cabling,electrical equipment and automationsystems.Older generations of multidrives can be updated to the latest ACS88

279、0technology,which is compatible with nearly any industrial process,automation system,user group or business requirement.The approach minimizes the costs ofmodernization,while limiting any interruption to operations.Best of all,it extends theuseful life of valuable assets and enables greater circular

280、ity when it comes to managingthe lifecycle of the equipment.SUSTAINABILITYAT ABBLOW-CARBONSOCIETYPRESERVINGRESOURCESSOCIALPROGRESSINTEGRITY&TRANSPARENCYTABLES&FIGURESABB SUSTAINABILITY REPORT 202145WASTEZero wasteTarget:Zero waste from our own operations will bedisposed of in landfills,wherever this

281、 is compatiblewith local conditions and regulationsWe are committed to eliminating the impact of ABBs waste on the environment.We areworking towards this target by means of a wide range of waste reduction and recyclingprograms at our sites around the world.Total waste to landfill2021183 kilotontotal

282、 non-hazardous waste6.9%(12.6 kiloton)waste to landfill184 kiloton total non-hazardous waste8.2%(15.1 kiloton)waste to landfill2020in-house recycling and reuse,mainly of packaging materials and thermoplasticsGlobally,we now have 185 sites that send zero waste to landfill,with around 255 makingprogre

283、ss towards this goal.Over the past year,through in-house recycling and reuse,mainly of packaging materials and thermoplastics,we reduced the amount of waste thatABB generates by 2,300 tons.We implemented more than 40 recycling and waste reduction projects in 2021.Theseprojects reduced the waste we g

284、enerate annually by 140 tons,while delivering annualsavings of some$100,000.More than 40 percent of these projects have a payback periodof less than two years.Initiatives such as switching from polyurethane-based packaging to paper,as was doneat our Ossuccio site in 2021,are helping us become a zero

285、-waste enterprise.This oneinitiative alone eliminated 35 tons annually of non-recyclable waste produced fromhazardous chemicals.In the United States,several ABB sites have opted to pay a premiumto send their waste to an energy-recovery facility instead of the local landfill.Suchinitiatives demonstra

286、te that we are willing to pay more to uphold our commitment tooperating in an environmentally responsible manner.SUSTAINABILITYAT ABBLOW-CARBONSOCIETYPRESERVINGRESOURCESSOCIALPROGRESSINTEGRITY&TRANSPARENCYTABLES&FIGURESABB SUSTAINABILITY REPORT 202146CASE STUDYFrosinone joins growinggroup of ABB zer

287、o-wastefacilitiesIn 2020,ABB Smart Powers low-voltage circuit breaker factory in Frosinone,Italy,achieved its goal of disposing zero production waste to landfill.In operation since 1969,the 150,000-square-meter facility with more than 800 employees implemented a whole-factory program to do its part

288、in meeting ABBs commitment to zero waste to landfill atall of its sites by 2030.The site is recognized as a lighthouse plant by the Italian government,together with twoother Electrification sites in Italy(Dalmine and Santa Palomba),and serves as a model forinnovative digital transformation and Indus

289、try 4.0.In both its operations and its products,the Frosinone facility promotes smart,digital,connected operations that increaseefficiency across the full value chain.To make the facilitys production even moresustainable,the team established thorough waste-sorting and identification proceduresat the

290、 key points where waste originated.The site now features roughly 150 differently-labeled production waste containers,and there are separate containers for paper andplastic waste at each workstation.Staff training was critical to making the project asuccess,as it empowered colleagues to make waste se

291、paration decisions and engagedthem fully in the initiative.In achieving zero production waste to landfill well ahead of ABBs commitment,as well asgoing beyond the European Unions Circular Economy Package target of no more than10 percent to landfill by 2035,the facility demonstrated that fast and eff

292、ective progress inpreserving resources is well within reach.SUSTAINABILITYAT ABBLOW-CARBONSOCIETYPRESERVINGRESOURCESSOCIALPROGRESSINTEGRITY&TRANSPARENCYTABLES&FIGURESABB SUSTAINABILITY REPORT 202147RIGHT MATERIALSEliminating unsafe materialsfrom our operationsThe ABB List of Prohibited and Restricte

293、d Substancesserves as our guide in reducingand,where possible,eliminating our use of hazardous materials.This list applies to all ouroperations,including procurement,product development,production processes,products,packaging materials,service activities and construction sites.We update thelist twic

294、e a year in keeping with international regulations,in particular the EU REACHregulation.To help suppliers meet their obligations which include partnering with us to identifyand prevent restricted substances and conflict minerals from entering ABBs supply chain we have developed a companion guideto t

295、he above-mentioned list.ABBs GlobalTerms and Conditions for suppliers and our Supplier Code of Conductaddressprohibited and restricted substances in the context of regulatory compliance.In 2021,we launched 16 new projects to reduce and phase out hazardous substances.Due to the variety and specialize

296、d nature of our Groups products and processes,thereduction of hazardous substances is typically addressed on a site-by-site basis.Under our new business model,described in ABBs 2020 Sustainability Report,ourBusiness Areas assumed full ownership of their respective product material complianceduties.T

297、hese include ensuring that ABB complies with EU requirements for chemicalsand products listed in the Substances of Concern in Products(SCIP)database.Oneexample of the success of this approach is the screening program developed by ABBElectrification and its suppliers,which monitors and eliminates haz

298、ardous substancesfrom components supplied to ABB.In 2021,through this program,we gathered data onmore than 370,000 components and worked with more than 10,000 active suppliers tosatisfy our mutual obligations under the European Unions REACH and RoHS regulations.SUSTAINABILITYAT ABBLOW-CARBONSOCIETYP

299、RESERVINGRESOURCESSOCIALPROGRESSINTEGRITY&TRANSPARENCYTABLES&FIGURESABB SUSTAINABILITY REPORT 202148Social progress04We promote social progress50Safety52Diversity&inclusion54Employee engagement score57Community engagement58Human rights64SUSTAINABILITYAT ABBLOW-CARBONSOCIETYPRESERVINGRESOURCESSOCIALP

300、ROGRESSINTEGRITY&TRANSPARENCYTABLES&FIGURESABB SUSTAINABILITY REPORT 202149STRATEGY PILLAR OVERVIEWWe promote social progressAt ABB,we are building safe,fair,equitable and inclusiveworking environments where our people can succeed anddevelop.That means continuously reducing workplaceinjuries,improvi

301、ng our employees sense of well-being,increasing diversity&inclusion,promoting respect forhuman rights,and making ABB a place where people wantto work and build their careers.Target overview Achieving zero harm through yearlyreduction in lost time from incidents Doubling proportion of women insenior

302、management rolesto 25 percent Achieving top-tier employeeengagement score in our industry Providing impactful support forcommunity-building initiativesBeyond our own operations,we support community development around the worldthrough impactful initiatives focused on education,diversity and inclusion

303、,and care in thecommunity.Additionally,we promote social progress in our supply chain through our SustainableSupply Base Management system,which also drives broader environmental,social andgovernance performance(ESG).In the field of human rights,ABB goes beyond compliance by embedding human rightsco

304、nsiderations in our decision-making processes,by prioritizing human rights in the riskanalyses we perform for our entire value chain,and by building human rights awareness,knowledge and expertise throughout our businesses.Respect for human rights-or,simply put,respect for people-underpins our approa

305、ch to social progress.SUSTAINABILITYAT ABBLOW-CARBONSOCIETYPRESERVINGRESOURCESSOCIALPROGRESSINTEGRITY&TRANSPARENCYTABLES&FIGURESABB SUSTAINABILITY REPORT 202150Four of the targets in our 2030 sustainability strategy relate directly to how ABB isworking to promote social progress.First among them is

306、our effort to ensure a safeworking environment:We aim to achieve a yearly reduction in lost-time incidents.Second,we are working to double the proportion of women in senior management rolesto 25 percent.Third,we are seeking to achieve and maintain a top-tier employeeengagement score in our industry.

307、Fourth,we will provide impactful support for a rangeof community-building initiatives.SUSTAINABILITYAT ABBLOW-CARBONSOCIETYPRESERVINGRESOURCESSOCIALPROGRESSINTEGRITY&TRANSPARENCYTABLES&FIGURESABB SUSTAINABILITY REPORT 202151SAFETYZero fatalities for the first timein 10 yearsTarget:Zero harm is cause

308、d to our people and contractors;we aim for a yearly reduction in lost-time incidentsAt ABB,safety is our highest priority and the foremost standard by which we measure ourperformance.Our ability to ensure the safety of our people is critical to our long-termsuccess,reputation and standing as the bes

309、t partner for our customers and otherstakeholders.In 2021,we recorded a lost-time injury frequency rate(LTIFR)of 0.14.In our previoussustainability reporting cycle,we used a total recorded injury frequency rate(TRIFR)tomeasure our progress in making ABB a safer place to work.We opted to use LTIFR fo

310、r thecurrent sustainability cycle because it is directly related to productivity and more widelyaccepted within our industry.Furthermore,LTIFR is generally more accurate,because intodays reporting culture,there is a minimal probability of a lost-time incident goingunreported.Safety at ABB00.05201920

311、2020210.1590.100.150.200.250.300.2460.142SUSTAINABILITYAT ABBLOW-CARBONSOCIETYPRESERVINGRESOURCESSOCIALPROGRESSINTEGRITY&TRANSPARENCYTABLES&FIGURESABB SUSTAINABILITY REPORT 202152For the first time since 2011,ABB recorded zero employee fatalities and zero contractorfatalities for the year in 2021.Wh

312、ile we are very pleased with this result,we are aware thatany safety incident has the potential to lead to a fatality.With this caveat,we have reasonto be proud of the robust safety culture ABB has built over the past decade.Our BusinessAreas safety programs have been highly effective at reducing or

313、 eliminating conditionsthat can lead to incidents,for example by focusing on hazard reporting and conductingsustainability observation tours.This is also evidenced by the downward trend in the totalnumber of serious incidents ABB has recorded since 2014.Since they have the freedom to design and impl

314、ement their own safety programs,ourBusiness Areas and their Divisions were able to create a wide variety of thoughtfullytargeted and granular approaches to the specific risks that each Division,service productgroup or industry faces.These programs are not required to conform to“one size fits all”pre

315、scriptions.To mitigate the risks associated with this flexible,decentralized approach to safety,ourBusiness Areas and their Divisions are required to take full ownership of their respectivesafety programs.They are thus fully accountable for delivering results commensuratewith our Groups strong commi

316、tment to safety.Furthermore,to increase corporatemonitoring of corrective actions and lessons learned,we are strengthening thegovernance of ABBs safety activities via regular council meetings and steeringcommittees.In this way,ABBs corporate leadership and its Business Areas can identify,align and c

317、ollaborate on company-wide improvement programs.SUSTAINABILITYAT ABBLOW-CARBONSOCIETYPRESERVINGRESOURCESSOCIALPROGRESSINTEGRITY&TRANSPARENCYTABLES&FIGURESABB SUSTAINABILITY REPORT 202153DIVERSITY&INCLUSIONLeveraging diversity andincreasing femalerepresentation in managementTarget:Double the proporti

318、on of women in seniormanagement roles to 25 percent,within ourcomprehensive diversity and inclusion frameworkOur aim to double the proportion of women in senior management roles is part of ourbroader Global Diversity and Inclusion Strategy 2030,which has the ambition to makeABB a truly diverse,fair

319、and inclusive place to work for everyone.That strategy isunderpinned by a comprehensive diversity and inclusion framework that recognizesdiversity in all of its dimensions:gender,ethnicity,age,ability and sexual orientation.The strategy is based on three pillars:1.Governance2.Inclusive leadership an

320、d culture3.PartnershipsWomen in senior management(%)201820192020202110.511.713.516.3At ABB,senior managers are defined as employees in Hay grades 1-7.SUSTAINABILITYAT ABBLOW-CARBONSOCIETYPRESERVINGRESOURCESSOCIALPROGRESSINTEGRITY&TRANSPARENCYTABLES&FIGURESABB SUSTAINABILITY REPORT 202154In 2021,we r

321、an mentoring and leadership development programs across all BusinessAreas to develop and strengthen our pipeline of female talent globally and regionally.These programs provide promising female employees with mentors for professionalguidance,learning and support,as well as networking opportunities w

322、ith ABB seniorleaders.They also help our female team members become part of a mutually supportivecommunity to enable them to realize their potential and assume more senior leadershippositions.Our Business Areas have embraced these programs.In 2021,more than 100 menteesand 100 mentors from both ABB M

323、otion and ABB Robotics&Discrete Automationparticipated in ABBs Female Mentoring Development Program.In ABB ProcessAutomation,112 talented female employees joined the“PA Women DevelopmentProgram”for a period of nine to 12 months.And ABB Electrification launched theWomens Leadership Development Progra

324、m(WLDP)to strengthen its female talentpipeline,providing visibility,development,senior sponsorship and executive coaching forprogram participants.Along with our 2030 target for increasing the representation of women in seniormanagement,we have three additional targets for diversity,equality and incl

325、usion(DEI):to achieve an equal gender balance among our early talent hires,to provide broaderaccess for our people to Employee Resource Groups3(ERGs)and to improve employeeperceptions of inclusiveness at ABB.Diversity&inclusion highlights in 202140.5%of early talent hires were womenmoving ABBs cultu

326、re of inclusion forward through dedicated activities during Pride Month 2021Official Global Partner of the FIA Girls on Track ABB Formula E ProjectLaunch of new flexible work practicesfirst global,gender-neutral,parental leave programdedicated D&Iinitiatives within ABBs four Business AreasEarly tale

327、nt hires,ERGs and inclusiveness at ABBIn 2021,we made good progress on all three of our internal DEI targets.Among our earlytalent hires,40.5 percent were women;we now have 22 active ERGs in countries acrossthe world;and we established a baseline for our inclusiveness target.In keeping with oureffor

328、ts to build a robust culture of inclusion,more than 7,600 ABB managers and otheremployees have completed our“Interrupt Unconscious Bias”program.Diversity andinclusion are also among our core leadership competencies,and we have made a wideselection of learning paths on this topic available to all of

329、our people.3Employee Resource Groups are voluntary,employee-led groups whose mission at ABB is to championdiversity initiatives and embrace the differences that make us unique,thereby fostering an environmentof inclusion,equity and belonging at ABB.SUSTAINABILITYAT ABBLOW-CARBONSOCIETYPRESERVINGRESO

330、URCESSOCIALPROGRESSINTEGRITY&TRANSPARENCYTABLES&FIGURESABB SUSTAINABILITY REPORT 202155Global,gender-neutral,parental leave programAmong other initiatives to make ABB more inclusive,in 2021,we revised our Group-wideguidelines for flexible work practices,which are now being rolled out across ABB and

331、welaunched a global,gender-neutral,parental leave program,providing 12 weeks of paidleave for primary caregivers and four weeks for secondary caregivers.Additionally,substantial work has been done in the past year to attract,recruit,develop and retaindiverse talents.ABB PrideDuring Pride Month 2021,

332、thousands of our people participated in events aimed atpromoting a culture of inclusion.ABB was recognized by Germanys Prout at WorkFoundationas an LGBTQ+ERG Global Leader for our efforts to support ERGs andmobilize our LGBTQ+colleagues and allies in such a short time.In Switzerland,ABB washonored w

333、ith the Swiss LGBTI-Label a seal of approval awarded to organizations thatactively promote equal opportunities and equity for LGBTI people within the organization.Partnering to drive social progressTo drive social progress within our company and throughout society,ABB has partneredwith the Society of Women Engineers,Society of Hispanic Professional Engineers,National Society of Black Engineers,Sto