We enable a low-carbon society

Pillar overview We enable a low-carbon society

Low-carbon society – strategy pillar key visual (photo)

To support the transition to a low-carbon society, we aim to move toward carbon neutrality in our own operations by 2030 and are actively helping to reduce greenhouse gas (GHG) emissions in our suppliers’ and customers’ operations. Our technologies serve industry, buildings, power and transport – sectors that together account for three-quarters of global energy consumption.

To increase our accountability, in 2022 we developed 2025 mid-term targets to reduce emissions in our own operations and our suppliers' emissions. These mid-term targets were developed in close collaboration with our businesses and approved by the ABB Executive Committee and the ABB Board of Directors. Going forward, the Board of Directors will continuously evaluate the ambition of and progress toward our sustainability targets. We aim to achieve our targets ahead of schedule and will continue to refine them if we believe further adjustments will enable us to intensify our efforts.

We will continuously provide our stakeholders with transparent information about our performance and progress against our targets.

Targets 2030

Mid-term targets 2025

2019 baseline1

2022 status

Achieve carbon neutrality in our own operations by 2030; reduce own scope 1 and 2 emissions by at least 80%2

Reduce own scope 1 and 2 emissions by at least 70%

639 kilotons CO2e (adjusted for portfolio changes)

65% since baseline and 43% in 2022 alone

Work with main tier-one suppliers3 to reduce their scope 1 and 2 CO2e emissions by 50%

Work with main tier-one suppliers3 to reduce their scope 1 and 2 CO2e emissions by 20%

Measurement in process

Measurement in process

Support our customers in reducing and avoiding annual CO2e emissions by ≥100 megatons in 2030 from solutions sold from 2021–2030

Support our customers in reducing and avoiding CO2e emissions by ≥45 megatons in 2030 from solutions sold from 2021–2025

n/a

Methodology under review4

1

Where a baseline applies.

2

Carbon offsets for remaining 20% CO2e emissions as a last resort.

3

Suppliers covering 70% of our annual procurement spend.

4

We are evaluating to have our targets validated against the Science Based Targets initiative’s new Net-Zero Standard which might impact our 100 megaton customer target.

ABB’s 2030 GHG emissions targets for our own operations have been approved by the Science Based Targets Initiative (SBTi), providing external confirmation that they are in line with the 1.5 degrees Celsius target adopted by the Paris Agreement. Our sustainability reporting follows the GRI Standards, and our emissions accounting conforms to the globally accepted GHG Protocol.

In 2023, we will continue to reduce GHG emissions from our own operations by making greater use of certified green energy sources and self-generated solar electricity. We are continually improving the energy performance of ABB sites that possess significant footprints by means of energy management systems and energy efficiency measures; to this end, we use ABB’s products and solutions whenever possible. In 2023, we will also focus on eliminating hard-to-abate emissions from natural gas by implementing energy efficiency measures and shifting to renewable fuels or electricity. Additionally, we will continue to cut our SF6 emissions and coolant-related emissions from HVAC systems, and we will continue to transition to a fully electric vehicle fleet.