ABB publishes its first Integrated Report
Zurich, Switzerland, February 24, 2023
Ad hoc Announcement pursuant to Art. 53 Listing Rules of SIX Swiss Exchange
- Report covers ABB’s 2022 financial and sustainability performance
- New 2025 mid-term sustainability targets for emissions in own operations and suppliers’
- Reduction of company’s own GHG emissions by 65% since 2019
ABB today published its first integrated report, which highlights progress against the company’s strategy and demonstrates how ABB creates value holistically for its stakeholders in the short-, medium- and long-term. As ABB’s primary report at Group level, this report is aimed at a broad range of stakeholders and integrates the most important material information on the company and its strategy, business, governance as well as its financial and sustainability performance. In addition to the integrated report, ABB’s 2022 annual reporting suite published today includes its Financial Report, Corporate Governance Report, Compensation Report, Sustainability Report as well as the Form 20-F that was filed with the United States Securities and Exchange Commission.
“I am pleased to present ABB’s first integrated report, which explains how our company purpose enables us to drive performance and create value for our stakeholders. The report shows how the various parts of our global company fit together to deliver improved financial results while contributing to a more sustainable society,” said ABB Chairman Peter Voser. “It also provides an overview of the external environment in which we are operating and how we intend to meet our targets in the short-, medium- and long-term. Naturally, the report also covers our performance over the past year and it is these achievements that make me most proud and confident in our team’s ability to deliver on our ambitious financial and sustainability targets in the years ahead.”
New 2025 mid-term sustainability targets launched to improve accountability
Since the launch of its 2030 sustainability strategy in November 2020, ABB has made continuous progress toward its goals of enabling a low-carbon society, preserving resources, promoting social progress, and creating a culture of integrity and transparency along the extended value chain.
ABB CEO Björn Rosengren said: “Against the backdrop of a year of crises and setbacks for society, it is clear that ABB’s purpose – to enable a more sustainable and resource-efficient future with our technology leadership in electrification and automation – is more relevant than ever, especially when it comes to tackling climate change.”
To increase accountability, ABB today published new 2025 mid-term targets for the low-carbon society pillar of its sustainability strategy. The targets include:
- Reduce own scope 1 and 2 CO2e emissions by at least 70 percent
- Work with main tier-one suppliers[1] to reduce their scope 1 and 2 CO2e emissions by 20 percent
Steady progress towards 2030 sustainability goals
In 2022, ABB reduced greenhouse gas (GHG) emissions in its own operations 42 percent. Since 2019, the company achieved a total emissions reduction of ~65 percent. In addition, ABB helped its customers reduce or avoid GHG emissions through its leading electrification and automation technologies.
ABB also continued to advance on the other three pillars of the strategy. In 2022, it strengthened its circularity approach by defining clear key performance indicators (KPIs) for every stage of the product life cycle, from design to end-of-life. One important initiative was the launch of our EcoSolutions™ label, which provides full transparency into the circularity value and environmental impact of a product, verified by a third party.
When it comes to social progress, ABB improved workplace safety with a 29 percent year-on-year decrease in its lost-time injury frequency rate (LTIFR). The company also increased gender diversity in senior management with a year-on-year increase in the share of women in senior management from 16.3 percent to 17.8 percent, and it also enhanced its human rights due diligence process. In addition, ABB made considerable progress toward its 2030 goal of implementing a comprehensive, risk-based approach to ensure a consistently high standard of integrity across our organization.
Adhering to internationally recognized standards and frameworks
ABB’s integrated report is based on elements of the International Integrated Reporting Framework while the financial statements are prepared in accordance with US GAAP. Sustainability information is provided in accordance with the GRI Standards and also covers the SASB Standards, the TCFD (Task Force on Climate-Related Financial Disclosures) Recommendations, the EU taxonomy and the 10 principles of the UN Global Compact.
The full annual reporting suite including the Integrated Report and Sustainability Report can be accessed and downloaded here.
ABB is a technology leader in electrification and automation, enabling a more sustainable and resource-efficient future. The company’s solutions connect engineering know-how and software to optimize how things are manufactured, moved, powered and operated. Building on more than 130 years of excellence, ABB’s ~105,000 employees are committed to driving innovations that accelerate industrial transformation. www.abb.com
[1] Suppliers covering 70 percent of ABB’s annual procurement spend.
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