Emissions in the supply chain Engaging with our suppliers to reduce their emissions

To enable a low-carbon society, we also need to reduce emissions in our supply chain. When developing our science-based target, we estimated GHG emissions in our supply chain and are now working with our commodity experts and suppliers to develop a systematic approach to reduce these emissions. We have set a science-based target to cut our overall Scope 3 emissions by 15 percent by 2030, which will include important contributions from our suppliers.

Over the course of the year, ABB’s four Business Areas began preparing to engage with suppliers on the topic of emissions. These preparations included forming dedicated teams and establishing priorities and action plans. Mapping potential impacts of commodities and processes in our supply chain, identifying the current performance of major suppliers, and evaluating their existing or planned emission reduction programs will form the basis for further discussions and help us finalize our overall emissions reduction goal. Furthermore, ABB has built up its internal capacity to conduct comprehensive life cycle assessments (LCAs). These LCAs are revealing the total contribution of raw material sourcing to the overall carbon footprints of our products, while also pointing out where we can conduct meaningful interventions with suppliers.

ABB’s supply chain emissions reduction efforts have implications for our business. Above all, they will lead to further review and evaluation of our suppliers' positions and actions on sustainability topics. Eighty percent of our supply chain emissions (Scope 3) come from raw materials (62 percent) and transport (15 percent). The most important materials for our business are steel, aluminum, plastics and copper, in that order.

For more information about ABB’s comprehensive approach to supplier engagement, please refer to “Responsible Sourcing” in this report.