Performance against objectives

1.

All sites to reduce use of energy by 2.5 percent annually

–

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

–

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

2.

Develop guidelines to monitor the environmental impact of transport of goods

–

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

–

Key Performance Indicators developed

–

Carbon dioxide emissions from cross-border transportation collected and evaluated

–

Draft guidelines developed and due to be tested in 2011

3.

Monitor and reduce environmental impact from business air travel

–

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

–

Review of reduction possibilities commenced

4.

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

–

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

5.

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

6.

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

–

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

7.

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

8.

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

–

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

9.

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

10.

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

–

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

11.

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

–

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

12.

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

–

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