Other GRI indicators

Environment

Environmental performance data for 2013 was sourced from more than 550 ABB sites and offices, covering 88 percent of employees. The environmental performance of the remaining employees, located in non-manufacturing entities without significant impacts, is covered by estimated data for energy, water and waste parameters.

The estimation factors used for 2013 are as follows:

EN11 and EN12 – activities in areas of high biodiversity value

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 and conservation efforts.

EN16, EN17 Greenhouse gas emissions (kilotons CO₂ equivalents)

EN29 Significant environmental impacts of transportation (kilotons CO₂ equivalents)

EN19 Emissions of Volatile Organic Compounds (tons)

The major constituents of VOCs and VOC-Cls are xylene, thinner and perchloroethylene. The significant increase in 2012 was due to the inclusion of Baldor facilities.

EN20 Emissions of NO_X and SO_X (tons SO₂ and NO₂)

These figures are for fossil fuels consumed in ABB premises for heating and process purposes. The significant increases in NO_X from burning gas are due to the inclusion of Baldor facilities in 2012 and of Thomas & Betts facilities in 2013. Many of these facilities use higher quantities of gas than the existing ABB facilities.

EN23 Numbers of significant spills

EN28 Significant fines for non-compliance

The emissions to air involved the accidental release of SF₆ gas in one incident, the release of HCFC-22 from an air conditioning system and a permit exceedance on the emission of toluene. The oil spills were contained and adequate decontamination procedures were implemented to prevent any permanent contamination of soil and water. Other incidents were related to exceedances on stormwater contaminants. Root causes of the incidents were analyzed and corrective actions, such as improved control systems, upgraded secondary containment and additional training, have been taken to reduce the risk of future spills or emissions. None of the incidents resulted in significant environmental impact. Combined costs of remediation and corrective actions were approximately $260,000.

During 2013, three facilities received fines from environmental authorities – two related to hazardous waste and one related to a permit exceedance on waste water. In total the fines amounted to approximately $8,400.

Human rights

HR1 Significant investment agreements that include Human rights

ABB maintains and regularly reviews a list of sensitive countries where it has, or considers engaging in, business operations. Human rights, as well as legal, financial and security criteria, are included in risk assessments, and are among the factors in deciding whether ABB does business in a particular country.

Based partly or wholly on human rights considerations, ABB has not taken any business in Sudan or North Korea for several years.

HR4 Non-discrimination violations

All countries in ABB’s sustainability management program are asked to report any incidents of discrimination. There were 10 substantiated cases of harassment and one of discrimination in 2013, resulting in one termination, one resignation and a range of other measures, including formal warnings, counseling and further training.

HR5, HR6, HR7 Operations at risk

Freedom of association and collective bargaining, child labor, forced or compulsory labor.

There were no ABB operations identified during 2013 to be at significant risk concerning employee rights to freedom of association and collective bargaining, incidents of child labor, or incidents of forced or compulsory labor. Two cases of child labor were found at a sub-contractor of a newly-acquired company. Remedial action was taken immediately and no evidence of child labor was found during subsequent unannounced visits to the sub-contractor.

HR8 Training of security personnel in human rights

ABB recognizes the importance of training security personnel, as well as ABB country and regional managers, on the human rights dimensions of security work. It has been part of general security training in different parts of the world for several years. As far as security personnel are concerned, ABB recognizes it is essential that they observe human rights. We require due diligence to be carried out on security companies according to ABB and international standards.

HR9 Indigenous rights violations

All countries in ABB’s sustainability management program are asked to report any of indigenous rights violations. No such incidents were reported in 2013.

HR10 Percentage of total number of operations that have been subject to human rights reviews and/or impact assessments

This data is not available. ABB is involved as a supplier in thousands of projects worldwide each year. Depending on the scope and size of the project – such as larger power infrastructure projects – some will require at least an Environmental and Social Impact Assessment performed by the customer. The data is currently not consolidated by ABB.

HR11 Number of grievances related to human rights filed, addressed and resolved through formal grievance mechanism.

ABB has a number of formal grievance mechanisms, including a third-party run Business Ethics hotline available round the clock to internal and external stakeholders, and an Ombuds Program, where employees can report concerns confidentially. Figures are available for cases of discrimination and harassment (HR 4).

Labor practices

LA3 Benefits provided to employees

ABB, as a multinational organization with operations in around 100 countries, has difficulty in providing meaningful information for this indicator. ABB provides competitive salaries and benefits to employees, taking legal requirements into account and benchmarking against other companies. In view of the different legal requirements from country to country, and the adverse cost-benefit ratio in producing this information, ABB has decided not to report against this GRI indicator.

LA4 Employees covered by collective bargaining agreements

The proportion of our employees that are represented by labor unions or are the subject of collective bargaining agreements varies based on the labor practices of each country in which we operate. Collective bargaining agreements are subject to various regulatory requirements and are renegotiated on a regular basis in the normal course of business.

LA5 Minimum notice periods regarding significant operational changes

ABB is not in a position to provide Group-wide aggregated information, as the figures vary from country to country depending on local regulations. For the 27 countries of the European Union, ABB is represented on the EU’s European Works Council where such matters are discussed.

LA6 Percentage of total workforce represented in health and safety committees

Health and safety consultation is an integral part of ABB’s commitment to introduce into all businesses occupational health and safety management systems based on OHSAS 18001 and the International Labour Organization (ILO) guidelines. The form of health and safety consultation with employees varies according to local requirements and cultures. It includes health and safety committees and employee forums.

At Group level, ABB has a standing Occupational Health and Safety (OHS) committee chaired by an Executive Committee member whose mandate covers all employees.

LA8 Programs in place regarding serious diseases

More than 30 ABB country organizations report programs in place to address serious diseases. The majority of programs include stress management, health screening for conditions such as diabetes and hypertension, and counseling schemes to assist employees to maintain healthy lifestyles and a suitable work-life balance. Other initiatives include vaccination programs and cancer screening.

Additionally, all ABB travelers receive destination-specific security and health advice prior to travel. The health advice includes medical preparedness, medical screening where needed and advice on particular health risks at their destination.

LA9 Health and safety topics covered in formal agreements with trade unions

This information is not recorded by the Group, but local legislation requires formal agreements in some countries such as Germany and South Africa. Group health and safety performance is reported annually by the head of Group Function Sustainability Affairs at a meeting with the European Works Council.

LA12 Employees receiving performance reviews

ABB has a Group-wide policy to review at least annually the performance of every employee, providing opportunities to discuss work achievements, set future objectives and provide feedback and coaching.

LA13 Other indicators of diversity

As at December 31, 2013, ABB’s Board of Directors had eight members – seven men and one woman – of seven nationalities, whereas the Group Executive Committee had 11 members, including one woman, of eight nationalities. In addition, of the 750-strong workforce based at the company’s headquarters in Zurich, there are people from 54 countries.

LA14 Ratio of basic salary of men to women

In ABB, salaries are decided according to the nature of duties performed.

LA15 Return to work and retention rates after parental leave

Just over 2,600 employees took parental leave in 2013, two-thirds of whom were women. Following completion of parental leave, 84 employees – around 3 percent – did not return to work. Women accounted for 95 percent of those not returning.

Society

SO2 Business units analyzed for corruption risks

ABB’s internal audit team carries out an annual risk assessment as the basis for their audit planning for the following year. They carry out anti-bribery compliance reviews of business units and countries globally. In these reviews, ABB’s internal auditors review business processes, accounts and balances, and test transactions to assess robustness of controls and identify possible violations of ABB’s anti-bribery procedures.

SO3 Employees trained in anti-corruption procedures

Substantially all employees have completed training on ABB’s Code of Conduct. In addition, approximately 99 percent of all employees received training on anti-corruption procedures.

SO4 Actions taken in response to corruption

ABB applies a strict zero tolerance policy to combat corruption payments. Every incident is sanctioned, and may include termination of employment. In 2013 ABB identified four incidents of corruption of a government official. During the year nine employees were dismissed.

SO6 Political contributions

Under ABB’s Code of Conduct, contributions to political parties, politicians and related institutions are to be made only in exceptional cases and only after a rigorous approval process which includes the approval of the Chief Integrity Officer. In 2013 no contributions were made.

SO7 Legal actions for anti-competitive behavior

ABB has been cooperating with various anti-trust authorities regarding their investigations into certain alleged anti-competitive practices. For further information, please refer to the Commitments and contingencies note in the Notes to the Consolidated Financial Statements contained in the ABB Group Annual Report.

SO8 Significant fines and sanctions for non-compliance with laws and regulations

ABB did not face any significant fines or sanctions for non-compliance with laws and regulations in 2013. For further information, please refer to the Commitments and contingencies note in the Notes to the Consolidated Financial Statements contained in the ABB Group Annual Report.

Product responsibility

PR1 Health and safety impacts of our products

ABB products generally help improve users’ health and safety. They do this, for example, by improving industrial environments (automation control products), reducing exposure to aggressive, repetitive or hazardous operations (robotics), and reducing potential explosions, fire risks and oil pollution (oil-free capacitors and cables). Products with a potentially negative impact are those that could contribute to global warming (leak of SF₆ gas from substations), require deforestation and present a visual impact (transmission lines), cause losses of energy (most electrical products), or cause electrocution if misused.

PR2 Number of non-compliance incidents relating to product health and safety

All countries in ABB’s sustainability management program are asked to give details of any non-compliance incidents, including those concerning health and safety impacts of products and services. No incidents were reported for 2013.

PR3 Product and service information

ABB’s goal is to produce Environmental Product Declarations (EPDs) for our core products. They describe and quantify the environmental impact and performance of ABB products through every phase of their life cycles, covering raw material extraction, component manufacture, transportation and use over their full operating lifetime. They can also contain recovery, recycling and disposal instructions for when the product has completed its useful life. The EPDs are published on ABB’s website and help customers to select products that will improve their own environmental performance. ABB also engages with customers with particular reporting needs, to ensure clarity and completeness of environmental data.

PR4 Non-compliance concerning product information and labeling

During 2013, ABB received five related complaints related to product information or labeling. Three of these cases have been resolved with the payment of approximately $1,000 in penalties. The remaining two cases are pending.

PR6 Adherence to marketing communication regulations

PR7 Non-compliance concerning marketing communications

This is not an issue for ABB, which works in the field of advanced technologies and does not supply to the consumer product market.

PR8 Complaints regarding breaches of customer privacy

No complaints regarding breaches of customer privacy were received during 2013.

PR9 Significant fines for non-compliance with laws and regulations concerning products and services

No significant fines were levied against the company during 2013 for non-compliance related to products and services.

Economic

EC3 Benefit plan obligations

EC4 Government financial assistance

EC5 Wage level ratios

EC7 Local hiring procedures

As a multinational organization with operations on approximately 550 sites in more than 100 countries, ABB has difficulty in selecting appropriate countries and providing meaningful information for these indicators. In view of the adverse cost-benefit ratio in producing this information, ABB has decided not to report against these GRI economic performance indicators for the time being.