Performance against objectives

Sustainability objectives 2010/11


Overview of progress at end of 2010


Status of completion


All sites to reduce use of energy by 2.5 percent annually

Energy audits conducted or planned in 23 most energy-intensive production sites


Status of completion (pie chart)

Energy savings in buildings programs developed in top 20 countries, representing more than 80 percent of ABB real estate


Program to develop Group-wide approach to energy efficiency in buildings and production established, coordinated with Group Functions Real Estate, Operational Excellence and Sustainability Affairs



Develop guidelines to monitor the environmental impact of transport of goods

Pilot projects under way in Italy, Saudi Arabia, United States


Status of completion (pie chart)

Key Performance Indicators developed


Carbon dioxide emissions from cross-border transportation collected and evaluated


Draft guidelines developed and due to be tested in 2011



Monitor and reduce environmental impact from business air travel

Data collection and methodology for emissions calculation established and tested; first data collection accomplished


Status of completion (pie chart)

Review of reduction possibilities commenced



Phase out the use of hazardous substances in ABB’s products and processes

Status investigated of use/phasing out of hazardous materials in countries/local business units


Status of completion (pie chart)

Volatile Organic Compounds (VOC) reduction program established in Power Products division, which is responsible for more than 70 percent of Group VOC emissions


Group-wide list of restricted substances updated; program to enhance implementation under way



Ensure that environmental and health and safety aspects are considered in product development

Survey among product and project managers of current practices completed; program to further embed sustainability aspects in development


Status of completion (pie chart)


Early assessment of social, security, OHS and environmental risk in ABB’s project risk management process, to better manage sensitive projects

Quarterly meetings with two divisions (Process Automation and Power Systems) to identify potential risks at the project pursuit stage rather than at the later stage of tendering, with ongoing involvement of sustainability and security experts in project risk reviews and evaluation


Status of completion (pie chart)

Ongoing training for business managers and key functions to raise awareness of potential security and health and safety risks, as well as global human rights training program rolled out in 2010



Due diligence on all security companies according to ABB standards

After initial trials, global program to assess security companies piloted in Sweden. Most of global roll-out expected in 2011


Status of completion (pie chart)


Ensure rapid response capability and enable ABB in risk-rated countries to prepare and respond to potential threats

Launch of ABB threat map and new security Web site which helps company to prepare for, or mitigate, potential threats


Status of completion (pie chart)

Crisis workshops and exercises in 18 countries involving 450 employees


Facility Security project prepared with Group Functions Real Estate and Supply Chain Management. Launch in 2011



Develop ABB travel security system into a more supportive system for ABB

Improvements to travel security system completed in 2010. System now includes all main threat areas, including maritime threats, plus supporting documentation for travelers


Status of completion (pie chart)


Occupational Health and Safety Plan 2008–2011 continues, as approved by Executive Committee

Training and improvement programs in Power divisions with high-voltage audits, medium-voltage safety training sessions in different countries, and Energizing Safety initiative for substations


Status of completion (pie chart)

Framework strategy for Process Automation division developed focusing initially on four business units (Service, Marine, Metals/Minerals and Turbocharger service)


New leadership training program launched in 2010 targeting senior business managers. New safety behavioral program also launched



Increase monitoring of key potential and existing suppliers so that ABB is not complicit in any social, environmental, human rights or health and safety abuses

Project to monitor suppliers in high-risk production extended in 2010


Status of completion (pie chart)

Supplier Code of Conduct, defining the minimum sustainability standards for any company wishing to sell to ABB, introduced and sent to top 1,000 suppliers (representing more than 50 percent of ABB’s annual purchasing volume); being cascaded to remaining suppliers via local ABB organizations


Training of more ABB auditors under way



Extend social, environmental, human rights, and health, safety and security risk assessment in mergers and acquisitions (M&A) processes.

Sustainability checklists for M&A process updated in 2010; sustainability workstream now embedded in due diligence processes


Status of completion (pie chart)

Regular consultations between M&A and sustainability experts established to identify potential risks at early stage of feasibility evaluation