This section provides a selection of base information, defined by the Global Reporting Initiative Guidelines, comprising an organizational profile, report parameters, governance, commitments to external initiatives, stakeholder engagement and remaining sustainability performance indicators. Reference numbers are those used in the GRI Guidelines.
Organizational profile
2.1 Name of the organization
ABB Ltd is the parent company of the worldwide ABB Group.
2.2 Primary brands, products and services
ABB is a leader in power and automation technologies that enable utility and industry customers to improve their performance while lowering environmental impact. ABB’s products, systems, solutions and services are designed to improve the reliability of electricity supply grids, raise industrial productivity and save energy.
The Power Products division manufactures the key components to transmit and distribute electricity, such as transformers, switchgear, circuit breakers and cables. The Power Systems division offers turnkey systems for power transmission and distribution grids, and for power plants. These include complete substations, as well as high-voltage alternating and direct current transmission systems, together with their automation and network management systems.
The Process Automation division offers products and solutions for instrumentation, automation and optimization of industrial processes. The industries served include oil and gas, power, chemicals and pharmaceuticals, pulp and paper, metals and minerals, marine and turbocharging. Key customer benefits include improved asset productivity and energy savings.
The Discrete Automation and Motion division includes products and systems targeted at discrete manufacturing applications, such as robotics and programmable logic controllers (PLCs), and providing motion in plants, such as motors and drives. These businesses help customers to increase the productivity and energy efficiency of their assets.
The Low Voltage Products division manufactures low-voltage circuit breakers, switches, control products, wiring accessories, enclosures and cable systems to protect people, installations and electronic equipment from electrical overload. The division further makes KNX systems that integrate and automate a building’s electrical installations, ventilation systems, and security and data communication networks.
ABB is a manufacturing and services group which outsources only some of its work (for example, information technology support infrastructure).
2.3 Operational structure of the organization
At the end of 2010, the ABB Group comprised five power and automation divisions named in 2.2 above, supported by staff functions (such as Sustainability Affairs, Corporate Communications, Controlling, Legal and Compliance, Human Resources, etc.), all reporting to a 10-member Executive Committee. The president of the Executive Committee is the Chief Executive Officer of the company. Also represented on the committee are the heads of the five divisions, the Chief Financial Officer and head of Global Markets, the head of Marketing and Customer Solutions, the General Counsel and the head of Human Resources, who is also the Executive Committee member responsible for Sustainability Affairs.
The ABB Group comprises primarily operating companies, subsidiaries and majority-owned joint ventures, located worldwide and employed about 117,000 people as of December 31, 2010.
2.4 Location of headquarters
The headquarters of the ABB Group is located in Zurich, Switzerland.
2.5 Countries where the organization operates
The ABB Group of companies operates in around 100 countries. ABB’s largest operations are in Australia, Brazil, Canada, Czech Republic, China, Finland, France, Germany, India, Italy, Norway, Poland, Spain, Sweden, Switzerland, United Kingdom and United States.
2.6 Nature of ownership and legal form
ABB is listed on the SIX Swiss Exchange and the exchanges in Stockholm and New York.
As of December 31, 2006, Investor AB, Stockholm, Sweden, held 166,330,142 ABB shares, representing 7.2 percent of the company’s share capital and voting rights. As of April 6, 2010, BlackRock Inc., New York, U.S., together with its direct and indirect subsidiaries, held 70,267,934 ABB Ltd shares, corresponding to 3.0 percent of total share capital and voting rights.
To the best of ABB’s knowledge, as of February 28, 2011, no other shareholder holds 3 percent or more of ABB’s shares.
ABB Ltd is the holding company for the entire ABB Group and is registered as a corporation (Aktiengesellschaft) in the commercial register of the Canton of Zurich, Switzerland.
2.7 Markets served
ABB’s products, systems and services are supplied directly to many industries worldwide. These include electric, gas and water utilities, as well as a range of process, manufacturing and consumer industries, and the commercial and residential building sector.
ABB also serves the market through channels such as original equipment manufacturers, system integrators, distributors, and engineering, procurement and construction companies.
2.8 Scale of the reporting organization
See Our people chapter for data on employee numbers
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Sales (revenues) for 2010: $31,589 million | |||
|
Sales by region |
2010 |
2009 |
2008 |
|
Europe |
39% |
41% |
45% |
|
The Americas |
20% |
19% |
18% |
|
Asia |
28% |
27% |
26% |
|
Middle East and Africa |
13% |
13% |
11% |
See the ABB Group Annual Report for further details on financial results.
2.9 Significant changes in size, structure and ownership
There were no significant changes in size and structure during the fiscal year 2010. See also 3.8 Comparability.
As at January 1, 2011, ABB’s Board of Directors comprised eight non-executive members, all men, of six nationalities.
As at January 1, 2011, the Group Executive Committee comprised the CEO, the Chief Financial Officer and eight other members, including one woman, of seven nationalities.
2.10 Awards received
See Stakeholder relations chapter.
Report parameters
3.1 Reporting period
Calendar year 2010.
3.2 Date of previous report
March 2010, covering calendar year 2009.
3.3 Reporting cycle
Annual. Next report to be released in March 2012, covering calendar year 2011.
3.4 Contact point for the report
E-mail: sustainability.abbzh@ch.abb.com
Web address: www.abb.com/sustainability
3.5 Process for defining report content
ABB continues to report on the seven issues it considers material to its sustainability impacts, challenges and opportunities, namely: energy efficiency and climate change, managing environmental impacts, product innovation, health and safety, human rights, sustainability in our supply chain, and working in the community. The seven issues are not ranked in any order of priority.
Based on stakeholder consultations during 2010, we have now included more extensive reporting on governance and compliance, risk management, and ABB employee programs.
3.6 Boundary of the report
See Governance and integrity chapter.
3.7 Limitations on the scope of the report
The report does not cover work carried out by ABB on our customers’ sites. However, health and safety data covers all ABB employees wherever they work and all contractors for whom ABB is contractually responsible.
3.8 Comparability
The Sustainability Performance report covers all employees working in premises owned or leased by ABB. During 2010, ABB acquired Ventyx, an industrial software provider. Ventyx was included in the scope of 2010 sustainability performance reporting only as estimations for energy and water consumption, and waste generation per employee. ABB also acquired a further 23-percent stake in our Indian unit during 2010, which did not affect the comparability of data between this and the previous report.
The format adopted in the 2006 report to address the concepts contained in Version 3 of the GRI Guidelines, particularly the focus on those issues considered material to the sustainability impacts of the organization, has been maintained in this report to ensure consistency and comparability.
3.9 Data measurement
See the Governance and integrity chapter.
3.10 Effect of restatement of information
Nothing significant has arisen during 2010 which would require a restatement of information provided in earlier ABB Sustainability Performance reports.
The number of ABB employees was around 117,000 in 2010, similar to 2009, and the number of manufacturing sites, workshops and offices covered by the sustainability management program was approximately 360 in 2010.
3.11 Significant changes
There were no significant changes during 2010 in the scope, boundary, or measurement methods applied in the report.
3.12 GRI content index
A table appears in chapter GRI content index of this report which identifies the page numbers of all the standard disclosure indicators required by the GRI Guidelines.
3.13 Independent assurance
ABB believes in the importance of independent external assurance to enhance the credibility of its sustainability report. ABB’s main environmental and social performance indicators have been verified by the independent verification body Det Norske Veritas (DNV) through a review of information in the ABB sustainability performance database and interviews at various levels of the company prior to publication. Their statement appears on in chapter Independent verification of main performance indicators of this report.
Governance
Corporate governance is covered in detail in the ABB Group Annual Report. The GRI content index table of this report gives cross-references to the appropriate parts of the corporate governance section, wherever relevant.