ABB 2020 Sustainability Targets Target definition and methodology

Definition

Eco-Efficiency Portfolio focuses on the use-phase impacts of its products, systems and services in three areas: a) Energy Efficiency, b) Renewable Energy, c) Environmental - and Resource Efficiency. (ref: ABB Eco-Efficiency Portfolio Methodology Guideline). The KPI measures the annual revenues from products in the Eco Efficiency portfolio as a % of total ABB Group revenues.

Sources

ABACUS, ATLAS, CCP, GF-CD analysis Consolidation of annual Business Line excel reports on sales of Product Line and Product Groups included in the Eco Efficiency portfolio

Methods

ABB Eco-Efficiency Portfolio uses million USD (at nominal exchange rates) consolidated third party revenues from products, systems and services related to energy efficiency, renewable energy or environmental / resource efficiency. Any local currencies are transferred into USD at nominal exchange rates.

Definition

Total recordable incident frequency rate (TRIFR) includes fatal, serious injury, restricted workday case, lost time injury, medical treatment incidents and occupational illness. This rate excludes first aid incidents, business travel and commuting. This covers employees only.

Sources

The total workforce comes from ABACUS and is the number of employees used in GID to calculate frequency rates for employees

Methods

Calculations as per ABB Way document SA-I-01-01 Glossary.

Definition

40% decrease in absolute GHG emissions (scope 1 & 2) by 2020 compared to a 2013 baseline. Performance data excludes GEIS sites acquired in 2019-2018 to allow a comparable scope to baseline.

Sources

LSO (Local Sustainability Officer) reports from sites in SoFi include:; mass balance calculation on SF₆; data on direct use of fossil fuels for buildings and manufacturing processes; CO₂ emissions from own fleet; data from utility providers on CO₂ emissions per kWh of electricity used; stock of SF₆. For emissions from own fleet, in Europe data is retrieved from ABB’s fleet management tool. In the other two regions (AMC and AMEA), where the tool is not yet implemented, fleet emissions are estimated based on number of vehicles, typical mileage and emissions data

Methods

Site data is collected quarterly or annually and reported in SoFi. SF₆ is calculated using a mass balance calculation.

Definition

Reduce water consumption by 25% at ABB facilities in extremely high, high and medium-high stress categories. by 2020, from a 2013 baseline. A site’s water stress level is determined from the World Resources Institute’s Aqueduct Global Water Risk Tool. Water consumption for remediation is excluded. Performance data excludes GEIS sites acquired in 2018 to allow a comparable scope to baseline.

Sources

LSO reports in SoFi and subsequent analysis; the Global Water Tool by the WBCSD; water recordings at sites; invoices from water utilities

Methods

Data is collected once per year from all sites through a questionnaire in ABB’s LSO reporting process in SoFi. Data are collected by the LSO at each site in collaboration with the facility manager, e.g. by reading meters, checking invoices from the water utility.

Definition

Reduce the share of hazardous and non-hazardous waste sent for final disposal out of total waste generated by 19.6% by 2020 from a 2013 baseline. Performance data excludes GEIS sites acquired in 2019-2018 to allow a comparable scope to baseline.

Sources

LSO reports in SoFi and subsequent analysis; data records at sites; invoices from service providers

Methods

At our 300 sites that generate most waste, data on non-hazardous waste is reported by the LSO quarterly in SoFi. For remaining sites, data on non-hazardous waste is collected once per year through a questionnaire in SoFi. Hazardous waste data from all sites is collected once per year. The LSO report the data in collaboration with facility management and the service providers.

Definition

Reduce emissions from VOCs by 20% by 2020 from a 2013 baseline. Performance data excludes GEIS sites acquired in 2018 to allow a comparable scope to baseline.

Sources

LSO reports in SoFi; records of solvents, varnish and paints at sites; data records at sites; invoices from suppliers; mass balance calculations

Methods

Data is collected once per year from all sites through a questionnaire in ABB’s LSO reporting process in SoFi. A mass balance calculation is used to determine VOC emissions. Records of solvents, varnish and paints at sites; mass balance calculations; invoices from suppliers.

Definition

Risk is defined as the danger, posed to ABB, by the non-compliant operations of the supplier. Risk level is assigned as extremely high, high, medium or low, depending upon the severity of non-compliance identified during supplier audit. To reflect the degree of severity associated with non-compliances, extremely high-risk supplier is multiplied by a factor of 5; high risk supplier is multiplied by a factor of 3; medium risk supplier is multiplied by a factor of 1; low risk supplier is multiplied by a factor of 0. Total risk identified is summation of the weighted risk assigned to each supplier who has completed an on-site assessment and has outstanding corrective actions. Completion of corrective action by supplier would result in an increase in risks mitigated. NOTE- SSDP is a continuous ongoing process, with new supplier on site assessments conducted every month, hence closure % of 100% cannot be obtained at any given point, due to the lag between risk identification and time needed to complete the action to mitigate the risk.

Sources

SSDP Global KPI Report (tab- Risk: Total risk assessed; Total risk mitigated)

Methods

Risk closure % = (Total risk mitigated/total risk assessed) *100

Definition

Completion of global Integrity training campaigns as rolled out about every two years (Group Directive GD/LI-40). Campaigns provide e-learning for employees with email accounts and some campaigns also provide face to face training for blue collar employees. The indicator measures the % of invited employees who have completed the training and remain employed at 31 December. At the end of the second year the indicator measures cumulative completions over 2 years.

Sources

eLearning completion results from Learning Management System (LMS) of SAI Global for all colleagues with email accounts as well as training completion reports by country for colleagues without email accounts as appropriate

Methods

Data is collected on an ongoing basis from the LMS system or on a periodic basis from countries for Face-to-Face training of blue collar employees.

Definition

GF-SA Corporate Responsibility to identify a list of specific job roles exposed to Human Rights risks. These employees will receive Human Rights training.

Sources

GF-SA Corporate Responsibility

Methods

GF-SA CR will create the training materials for each campaign and invite nominated roles to participate in each campaign. GFSA will maintain a list of the population that received each training.

Definition

Senior management is defined as grades 1-7. The indicator measures the % increase in the proportion of women employees in grades 1-7 as % of total employees in grades 1-7 at 31 Dec at all sites in ABB.

Sources

HRGT

Methods

Percentage of women leaders in grades 1 to 7

Definition

According to the World Health Organization (WHO), the workplace represents a key channel for health promotion well-being – physical, psychological and social aiming to build healthy workforce. ABB managed well-being programs are to be in place for at least 3 months during a year, and to be available for 90% of employees in the site/location. Programs cover: No smoking program supporting quitting, Fitness and physical activity, Healthy nutrition, Mental health, Medical checks, Good Ergonomics, Health awareness, Addiction prevention, vaccinations and infection control. Employees are counted as covered by a wellbeing programme at year end if their country-Business Line report confirms a non-smoking programme AND 3 further well-being programmes in place.

Sources

HSE/SA Dashboard (Well-being Indicator) fed by local HSE representatives and generated by: GID (Global Incident Database) or Intelex (new IMS). The total workforce is the average number of employees over the year and comes from ABACUS

Methods

Ratio of the employees covered by well-being programs to the total number of ABB employees