Improving our performance, helping customers reduce their impact

Environmental impact occurs in all phases of a product’s life cycle – from manufacture and transportation to customer use and final recycling and disposal. ABB has been working for many years to manage our impacts, both within our own plants and offices, and those caused by our products.

To ensure continual improvement, we require all manufacturing and service facilities to implement environmental management systems according to the ISO 14001 standard. For non-manufacturing sites we have implemented an adapted environmental management system to ensure management of environmental aspects and continual improvement of performance. Almost all of these approximately 360 sites and offices currently work in compliance with the requirements of the standard and our environmental management program now covers operations in 59 countries.

ABB’s management systems are underpinned by intranet-based tools and procedures. Our Sustainability Toolbox contains information to support the development of eco-efficient products and processes, and the implementation of ABB’s sustainability objectives for 2010 and 2011.

Product development

ABB has Group-wide mandatory sustainability checks in place, which are applied in the development of new products and projects. This GATE model requires consideration of an environmental and health and safety checklist that provides guidance on how to reduce the use of hazardous substances, avoid other environmental and health risks, minimize consumption of resources, and design for recycling and easy end-of-life treatment. One of our sustainability objectives is to reinforce the full application of these checklists in product development.

To determine how well and how widely the checklist is used, we conducted a survey in 2010 among product and project managers of current practices. We are using this feedback to improve presentation and communication of the checklist, and to further embed sustainability aspects in product development.

ABB is developing Environmental Product Declarations to communicate the environmental performance of our core products over their complete life cycle. Declarations are based on Life Cycle Assessment studies, created according to the international standard ISO/TR 14025. More than 70 declarations for major product lines are published on our Web site (www.abb.com).

Hazardous substances

ABB is committed to phasing out the use of hazardous substances in our products and processes, where technically and economically feasible. We have developed lists of prohibited and restricted substances to guide this process and update them regularly, in line with developments in international regulations. Based on feedback from those using the lists, we have commenced a program to enhance the usability and application of the lists.

During 2010, we further investigated the use of hazardous materials and the status of phase-out programs in countries and business units. Alongside local, plant-specific programs, some business units (BU) have established global BU focus programs. For example, the Transformers BU in the Power Products division has established a Volatile Organic Compounds (VOC) reduction program.

VOC can react with other pollutants and sunlight to form ground-level ozone and are also one of the causes of summer smog. Conventional paints emit VOC and the main sources in ABB operations are the paint shops for transformers and motor manufacturing. The Power Products division accounts for more than 70 percent of the Group’s VOC emissions.

VOC reductions can be achieved by changing to water-borne, high solid, powder paints or by installing special equipment such as carbon filters. Building on 10 years’ experience with reduced VOC paints on some of our power transformers, and in cooperation with qualified global suppliers, ABB Corporate Research Center has now developed reduced VOC painting systems based on the ISO standard 12944-2.

ABB transformers are designed to last many years in various environments. Their location can range from a clean, heated, indoor installation to open deck installations offshore. By using ISO 12944-2 it will be possible to standardize the available paint systems across all manufacturing sites globally and to ensure performance in different installation environments. Sub-suppliers of painted parts will also be required to use comparable low VOC systems.

ABB is now introducing these systems as a standard for all our transformers. By switching our transformer manufacturing plants to lower VOC painting systems, ABB will reduce solvent emissions and also lower the energy consumption and costs involved in the application and drying of paints.

Waste and recycling

The main waste streams at ABB organizations are metal, wood, paper, oil and plastic. We aim to reduce the amount of waste sent to landfill and to increase our use of materials which are recycled or made available for reuse.

At Ludvika in Sweden, ABB’s Full Service team has developed a site-wide concept for handling waste products. Careful sorting of different types of waste, better management of waste contracts and addressing waste transportation have brought significant improvements and lower costs.

The process has not been without its challenges, however. Changing behaviors and attitudes was critical to success, and was achieved step by step, through committed leadership, appropriate training and the creation of a better work environment.

The improved handling generates an economic gain of more than $1 million per year and environmental benefits in the form of a 25 percent increase in recycling of materials, a 75 percent reduction of waste transportation, and a 33 percent reduction of incineration waste.

In May 2010, the ABB New Berlin Campus Green Team in the United States started collecting and recycling clear plastic wrap, clear plastic bags and clear bubble wrap, in addition to the plastic drive covers already being recycled. More than 3,000 kilograms of plastic wrap, bags, bubble wrap and drive covers were recycled, and over $500 collected. The funds were donated to the Schlitz Audubon Nature Center to continue the legacy of environmental education and stewardship.

ABB provides an extensive range of maintenance, repair and refurbishment services to help customers minimize costs and lengthen the life cycle of their products. These services cover control systems, as well as diverse products such as drives, robots, analytical instruments and transformers.

For example, as part of the “green transformer” program, ABB offers transformer remanufacturing and engineering services to reduce waste, recycle components and extend useful life. ABB can certify aged transformer components, typically the transformer tank and core, for re-use and replace the rest of the components with modern technology. The remanufactured transformer has the same life expectancy as a new transformer. ABB also offers a process that cleanses and extends the life of transformer oil instead of replacing it. This eliminates the need for new oil and the need for disposal of old oil.

Water

In order to better understand the impacts of ABB’s water withdrawals, we have used the World Business Council for Sustainable Development Global Water Tool to characterize the renewable water resource availability in the countries and watersheds in which we operate. We have classified water resources according to the Food and Agriculture Organization methodology.¹

At a country level, 10 sites are located in extremely water-scarce countries, nine sites in water-scarce countries and 33 in water-stressed countries. When considering watersheds, 41 sites are located in extremely water-scarce watersheds, 46 in water-scarce watersheds and 64 in water-stressed watersheds.

We are now mapping reported water withdrawals for the sites classified above and will use this information to help us determine appropriate activities at site and Group level.

Thanks to a wide products and solutions portfolio, we provide our customers with enhanced performance, efficiency and reliability in water management. ABB’s goal is to optimize the employment of water and energy resources to manage the integrated water cycle.

For example, we have developed a Water Leak Management solution that allows users to better monitor and manage losses throughout the distribution network. The solution uses flow and pressure data to identify new losses. In Thailand, ABB supported Bangkok Metropolitan Waterwork Authority (MWA) in managing the health of its wide and complex water distribution network. MWA is now able to monitor the network’s performance and to determine non-revenue water levels, to detect bursts more efficiently, to differentiate between background leakage and bursts, and to develop appropriate repair strategies.

¹ Food and Agriculture Organization of the United Nations (FAO) (2003). Review of world water resources by country. Water Reports 23. Rome. According to this methodology, a watershed is considered water stressed if the total actual renewable water resources (TARWR) is below 1700 m³ per person and year, water scarce if below 1000 and extremely water scarce if below 500.

Environmental performance: Other GRI indicators

Water

EN8 Water consumption

EN9 Water sources affected by withdrawal of water

EN10 Water recycled and reused

EN21 Total water discharge by quality and destination

EN25 Water bodies/habitats affected by water discharges and runoffs

ABB’s manufacturing processes do not use significant amounts of water, with extractions of groundwater and surface water used mainly for cooling purposes. None of these extractions caused significant changes to the water sources.

Approximately two-thirds of ABB’s manufacturing sites use water for process purposes. Thirty percent of the sites using process water use closed-loop processes, mainly for cooling systems, surface treatment processes and the production of electrical insulation paper. Excluding cooling water returned to the source of extraction, the use of closed-loop processes and reuse of waste water in other ways saved approximately 3,000 kilotons of water in 2010. In China, South Africa, Colombia and India, for example, water treated in ABB’s own treatment plants is reused for local irrigation and in sanitary services.

About 84 percent of plants discharge process water to the public sewers. About 13 percent discharge decontaminated process water via their own treatment plants. The remainder use water from local water sources, mainly for cooling water systems and test plants, which is then returned to these local water sources without any contamination. Two sites with their own treatment plants consider that their discharge of water affects the recipient, as the receiving bodies are near-permanently dry riverbeds.

Biodiversity and conservation

EN11 Land used in protected or high biodiversity value areas

EN12 Significant impacts on biodiversity in protected or high biodiversity value areas

EN13–15 Biodiversity and protected habitats

ABB’s manufacturing and workshop facilities are not located in, or adjacent to, protected areas or areas of high biodiversity value, as defined in internationally recognized listings or national legislation or internationally recognized listings such as the International Union for Conservation of Nature Protected Areas Categories 1–4, world heritage sites or biosphere reserves. Nonetheless, ABB works to rehabilitate our own sites and some of our operations are working with partners to contribute to local biodiversity. For example, ABB in Taiwan focuses on wetland conservation, partnering with the Guandu Nature Park and Chouchai Wetland Park. Both parks are significant habitats and breeding grounds for a wide variety of bird species and ABB supports the rehabilitation and maintenance of these valuable sites.

At Grave Mountain in Georgia, U.S., ABB has made significant progress in rehabilitating a kyanite mine opened in the 1960s. The mining process created tailing ponds that could not support vegetation/ecological habitats, and also created acid mine runoff. Four tailings ponds covering 40 hectares of land have been rehabilitated.

Four series of wetlands were constructed to treat the acid mine runoff using a cutting edge approach. Through the addition of limestone and mushroom compost, water quality has been improved and natural plant life encouraged to return. The acid runoff from the mine now flows into the wetland where it is passively treated. The water discharged at the outfall is of good quality and does not disturb the downstream ecology. Today the mine is a showcase for responsible and sustainable mine reclamation.

Air emissions

These figures are for fossil fuels consumed in ABB premises for heating and process purposes.

Waste and recycling

EN2 Percentage of materials used that are recycled input materials

EN22 Waste

EN24 Handling of hazardous waste

EN27 Percentage of products reclaimable after use

In 2010, 79 percent of total waste was sent for recycling. In-house recycling, mainly of thermoplastics and packaging material, reduced the amount of waste by approximately 3.5 kilotons. Additionally, the lead used as counterweights for robots and the cadmium used in industrial batteries are recycled materials.

In 2010, ABB sent approximately nine kilotons of hazardous waste for disposal, up some 50 percent from 2009 mostly due to increased business volumes and plant refurbishments and consolidation. This waste was mostly used for heat recovery at specialized plants. ABB follows legal regulations to transport and dispose of hazardous waste only through officially authorized disposal agents.

ABB products contain mostly steel, copper, aluminum, oil and plastics. Approximately 90 percent of the material is reclaimable after the end of a product’s useful life. ABB enhances the ability to recycle by designing products that can be dismantled more easily, and by providing users with recycling instructions.

Environmental incidents and penalties

EN23 Numbers of significant spills

EN28 Significant fines for non-compliance

Incidents were analyzed and adequate decontamination procedures were implemented to prevent any permanent contamination of soil and water due to these spills. Corrective actions, such as improved control systems, have been taken to reduce the risk of future spills.

During 2010, a $50,000 penalty was imposed for a spill from a coating process that occurred at a U.S. facility in 2009. The coating process has now been discontinued at that site.

EN30 Environmental protection expenditure and investments

For 2010, ABB’s expenditure on environmental management throughout its global sustainability affairs network was as follows: