Target 2030: Work with our most impactful suppliers – which account for 70 percent of our supply spending – to achieve a 50 percent reduction in their emissions
In 2022, ABB announced a new emissions target for its supply chain. The company will work with its main tier-one suppliers with the aim of helping them achieve a 50 percent reduction in their scope 1 and 2 GHG emissions by 2030. The program is focused on our most impactful tier-one material and service suppliers, accounting for 70 percent of ABB’s annual procurement spending. The new target has implications for our business, as it requires us to scrutinize the sustainability of our suppliers with greater care. At the same time, the project will contribute significantly to ABB’s goal of enabling a low-carbon society because many of our suppliers have larger emissions footprints than ABB itself.
In 2022, ABB’s four business areas began to engage with suppliers on the subject of emissions. For example, in India, ABB conducted its first Sustainable Supplier Summit. Held at ABB’s award-winning Nelamangala facility in cooperation with the Confederation of Indian Industry, the summit focused on approaches to mitigating climate change and showcased the best practices being applied at the ABB plant. In addition to engaging with suppliers, ABB’s business areas continued to form dedicated teams, formalize supplier sustainability frameworks and designate full-time supply chain sustainability managers. ABB also continued to strengthen its internal capacity to conduct life cycle assessments (LCAs). LCAs have proven themselves as effective tools for prioritizing interventions with suppliers, as they quantify the contributions of raw material sourcing to the full emissions footprints of our products.
Overall, we have reduced emissions in our supply chain by incorporating more recycled materials into our products, shifting to lower-carbon primary materials and using lower-carbon transport between tiers of suppliers.
For more information about ABB’s comprehensive approach to supplier engagement, please refer to the chapter “Responsible sourcing.”