ESG ratings

An environmental, social and governance (ESG) rating is a measure of a company’s exposure to long-term environmental, social and governance risks. Because these risks have financial implications, ESG ratings are used by investors to gain a broader understanding of a company’s long-term potential.

At the end of 2021, we conducted an internal review to identify the most relevant ESG ratings for ABB and its stakeholders. Based on these results, in 2022, the ABB Sustainability Board decided to reduce the number of rating systems in which we participate to six major ESG rating providers. You can read about the governance model in the chapter “Sustainability governance.” These ratings are:

CDP Climate Change

CDP Water

S&P GLOBAL ESG SCORE

Note: Sustainability Yearbook Member (within the top 15% of industry)

EcoVadis

ISS ESG

MSCI

Sustainalytics

In 2022, ABB’s performance in these seven ratings was stable overall. We will further strengthen our sustainability management processes through the ongoing implementation of our 2030 targets, programs and initiatives.