Performance against targets 2015

  On track
  In process
  Not on track


Products and services

Ambition and Targets




Main Activities, Achievements and Challenges 2015


Priorities 2016

Ambition 2020:
ABB is a world leading supplier of innovative, safe and resource efficient products, systems and services that help customers increase productivity while lowering environmental impact




50% of ABB revenues relate to energy efficiency and renewable energy in 2015, (51% in 2014)

Updated “eco-efficiency” portfolio methodology for 2016, strengthening criteria and expanding scope

Innovations and achievements in 2015

Updated material selection guidelines and health, safety and environment (HSE) Checklist for research & development (R&D) to strengthen “design for environment” principles

Trained 139 R&D engineers to use HSE Checklist and material selection guidelines

Established sustainability network for global research centers to share good practices and achievements related to sustainability objectives

Challenges to define eco-efficiency portfolio and assess technology contribution:

  • Very heterogeneous Group product portfolio with unique energy efficiency/productivity aspects – challenging to find one common denominator to serve them all
  • No established industry standard/guideline for sustainability product portfolios


Grow sales of best-in-class products, systems and service offerings that help customers cut energy use and reduce environmental impact

Ensure that ABB’s HSE Checklist is applied in the development of products and systems

20% revenue increase from energy efficiency-related products, systems and services




Qualitative assessment of technology contribution to environment, profit, and society




Number of R&D engineers trained in HSE Checklist





More on Products and services


Ambition and Targets




Main Activities, Achievements and Challenges 2015


Priorities 2016

Ambition 2020:
ABB recognized as one of the world’s most ethical companies by customers, suppliers, investors and employees




97% completion rate of anti-bribery training and of integrity e-learnings

Updated anti-bribery training material, with next campaign launched in 2016

Released new set of hotline posters promoting hotline reporting

Piloted new, global pre-approval tool for gifts, entertainment and expenses to improve transparency and review of the process. For roll-out in 2016


Continue to foster a culture of integrity through proactive integrity training and communication; launch updated anti-bribery training campaign in first half of 2016

Roll out new cloud-based global pre-approval tool for gifts, entertainment and expenses

Implement and promote the Don’t Look the Other Way initiative to increase transparency and reporting of potential concern

100% of employees trained on integrity issues and processes




Monitoring of reporting channels, investigations, remediation and survey results




Proactive & regular communication




More on Integrity

People and society

Ambition and Targets




Main Activities, Achievements and Challenges 2015


Priorities 2016

Ambition 2020:
ABB attracts, retains and develops dedicated and skilled people from diverse backgrounds, and engages with a wide range of stakeholders, including communities, to maximize benefits for our business and society




Defined capability management and workforce planning process. Ran pilot successfully in one division, setting stage for Group-wide roll-out in 2016

Finalized new Competency Model

Completed Next Level organization roll-out

Launched White Collar Productivity program covering business and support functions

Defined and finalized more rigorous people review sessions and succession planning process

Rolled out new scorecard process to strengthen performance orientation

48 of 66 countries reporting on social activities supported community projects and reported on them in community engagement tool. Level of reporting has remained static

Challenge: Ensuring take-up through all parts of business


Implement the capability and workforce planning process across all divisions

Embed new Competency Model in key Human Resources processes

Implement White Collar Productivity program, setting up shared services centers and Centers of Expertise

Improve learning and development offerings to reflect new competency model

Bottom-up people review sessions, leading to clearly articulated succession plans, particularly for mission-critical roles

Employee engagement score




ABB community engagement tool implemented in major ABB countries




More on People and society

Human rights

Ambition and Targets




Main Activities, Achievements and Challenges 2015


Priorities 2016

Ambition 2020:
Human rights issues are well understood and managed in all ABB operations along the value chain




Held four more two-part training courses to build required capacity for human rights network

Held two meetings of network, following inaugural session at end of 2014

Carried out due diligence on several potential projects in Europe, south-east Asia and South America

Limited progress with awareness-raising training due to time restrictions for face-to-face courses

Rolled out e-learning; limited uptake leading to further marketing efforts in 2016

510 managers trained by end of 2015


Consolidate human rights network so that target is achieved in 2016

Develop roadmap for further progress towards the goal for 2020, including the introduction of country human rights impact assessments

Build capacity within the company so that international human rights standards are better understood and can be applied to ABB operations

Network of sustainability employees trained on human rights by 2016




600 managers trained by end of 2016




More on Human rights

Safe and secure operations

Ambition and Targets




Main Activities, Achievements and Challenges 2015


Priorities 2016

Ambition 2020:
Safety is a core value. All ABB operations have an excellent health, safety and security culture embedded in their day-to-day business, targeting zero incidents




Conducted more than 139,000 SOTs, at a rate of 0.92 per employee

Reported more than 520,000 hazards, at a rate of 3.51 per employee

Total recordable incident rate for employees declined by 10% from 2014 and by more than 30% since 2011

Developed and piloted safety master-classes, to be rolled out across Group in 2016

Implemented new Lessons Learned assurance process, requiring review and action by each local business unit manager

Developed internal audit HSE protocol, trained internal auditors and conducted audits in all divisions and all regions

Certified OHS management system at 421 of 602 reporting locations (70%)

Held 22 face-to-face country management crisis training courses. Additional sessions held on physical and personal security, travel and project security, workplace violence, extortion awareness


Roll out safety master-classes: Promote leadership and accountabilities through training and coaching for managers

Reinforce accountability on roles and responsibilities for managing HSE-related issues and activities

Continue and develop internal audit program, expand scope and extend application

Continue to improve business resilience through crisis management trainings

Conduct trainings on project security best practice

Further global training on crisis management and project security

Introduction of updated travel advisory and mapping service

Safety Observation Tour (SOT) rate = 1.2 per employee, run rate 180,000




Hazard reporting rate = 2 per employee, run rate 300,000




>95% certified Health and Safety Management Systems




More on Safe and secure operations

Responsible sourcing

Ambition and Targets




Main Activities, Achievements and Challenges 2015


Priorities 2016

Ambition 2020:
Social and environmental risks and impacts of sourcing practices are well understood and managed




421 suppliers trained. Training scope expanded to Indonesia, Thailand and Vietnam. Supplier Sustainability Development Program launched in Poland

Trained further 259 ABB people in responsible sourcing. New lead assessor certifications for ABB employees in Brazil, China and India

Assessed 441 risks; mitigated 311 risks

Formally assessed 179 suppliers, another 22 suppliers reassessed

Updated assessment protocol to include root cause analysis, and conducted trainings

Developed and piloted ABB Training and Development Program for Factory Working Hours with selected suppliers

Developed and started roll-out of new supplier qualification and classification process


Global implementation of the new processes for supplier qualification and classification

Global roll-out of new SCM Supplier Relationship Management system (ProSupply)

Establish baseline status of targeted supplier types/countries, to enable development of quantitative targets

Intensify continuous improvement efforts to mitigate risk of sourcing Conflict Minerals

Number of suppliers assessed
(internal/by third party)

Total number of risks identified

Total number of risks mitigated

More on Responsible sourcing

Energy efficiency and climate change

Ambition and Targets




Main Activities, Achievements and Challenges 2015


Priorities 2016

Ambition 2020:
ABB is an industry leader in energy efficiency, use of low-carbon fuels and renewable energy. We cut greenhouse gas (GHG) emissions




Absolute energy consumption reduced by 6.8% (190 GWh) from 2013 baseline

Energy intensity increased by 10% from 2013 baseline; energy saving activities overtaken by decline in revenues and lower capacity utilization in some areas

195 energy saving projects underway at ABB sites

88 sites with formal energy management systems, with 47 certified to ISO 50001 or EN 16247

Energy audits conducted at 71 ABB facilities

71 GWh (4.4%) of electricity from renewable sources

GHG emissions decreased by 8.8%, mainly due to decreased SF6 emissions


Drive energy efficiency efforts at sites

Increase use of low-carbon fuels and renewable energy

Control and reduce emissions of SF6

20% decrease in energy intensity per $ sales from 2013 (megawatt hours/million $ sales)





More on Energy efficiency and climate change

Resource efficiency

Ambition and Targets




Main Activities, Achievements and Challenges 2015


Priorities 2016

Ambition 2020:
Materials and water use is optimized. Facilities in very scarce, scarce and water stressed areas to reduce water use. We target zero waste




Updated facility mapping according to watershed, using updated Global Water Tool; 64 sites in water stressed watersheds selected for water use reduction program

4% reduction in water withdrawals; 5.2 million m3 of water saved through recycling and reuse

20% of waste sent for final disposal, down from 21% in 2014; total generation of waste was essentially unchanged

90 waste reduction or recycling projects under way


All sites to analyze sources of waste and identify areas where generation of waste can be reduced

All sites to establish a plan with milestones to increase share of waste reused or recycled

Sites in very scarce, scarce, and water stressed areas to measure, analyze and establish a plan with milestones to reduce use of water

Cut water consumption by 25% in water scarce/water stressed areas




Reduce waste sent for final disposal by 20%




More on Resource efficiency

Right materials

Ambition and Targets




Main Activities, Achievements and Challenges 2015


Priorities 2016

Ambition 2020:
We aim for materials that are sustainable. Hazardous substances are used in closed loops or not at all




Updated prohibited and restricted substances list in line with regulations in ABB’s main markets

Further developed internal REACH experts network; conducted 13 training sessions on different aspects of REACH regulation

24 projects under way to reduce hazardous substances

Conducted workshops with Supply Chain Management personnel on material compliance

Conflict minerals:

  • Completed product applicability assessment in each division, covering large part of ABB product portfolio
  • Expanded training efforts for suppliers and ABB personnel
  • Engaged with Conflict-Free Sourcing Initiative, contributed funding for smelter audits


Ensure ABB products and manufacturing processes comply with “ABB List of Prohibited and Restricted Substances”

Include legal requirements on material compliance (eg, EU REACH and RoHS) in local ISO 14001 management system

Conduct training on material compliance and use of right materials

Reduce amount and type of hazardous substance used/emitted




EU REACH compliance




More on Right materials