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© Copyright ABB. All rights reserved. Rev.:Document ID.:
FIRST ANNUAL SUSTAINABILITY CONFERENCE – EGYPT 2020
Sustainability and ABBSVP HSE and Sustainability, ABB GroupZurich, Switzerland
2020
—Today’s News
January 10, 2020 Slide 2
—
• What is your biggest sustainability impact?
• What is your biggest sustainability contribution?
Can we have a big impact on making the world more sustainable?
—Mega trends shaping the future
1 UN, 20182 New Energy Outlook, Bloomberg NEF, 20183 IHS Markit, 2017
January 10, 2020 Slide 4
Urbanization
68% of the world’s population is projected to be urban by 20501
Decarbonization
By 2050 wind and solar technology provide almost 50% of the total electricity globally2
Digitalization
The number of connected devices worldwide will jump to 125 billion in 20303
Big sustainability issue and opportunities
—Who uses and/or stores data?
January 10, 2020 Slide 5
And where? Is this “the cloud”?
—
• Data centers globally consume over 410 Tera Watts /hour of energy.
• That’s more than the energy needs of the whole of the UK!
• Over the next 5 years this is expected to grow >30%!
Digital data is “clean”?
January 10, 2020 Slide 6
—Your advice on minimizing Data Centre impacts?
January 10, 2020 Slide 7
—Making data more sustainable
January 10, 2020 Slide 8
—ABB’s contribution to a sustainable society
January 10, 2020 Slide 9
HVDC Productivity Energy efficiency
Smart grid E-mobility Smart homes
We have the technology today
—Sustainability: Key driver of profitable growth
January 10, 2020 Source: Business and Sustainable Development Commission, Jan, 2017Slide 10
Sustainability is an attractive market for growth
Opportunities in different segments where ABB operates
Value of incremental opportunities in 2030 (US$ billions: 2015 values)
2’020
1’345
1’200
355
345
Mobility systems
Enegry efficiency
Clean energy
Urban Infrastructure
Building Solutions
—Smart Mobility
January 10, 2020 Slide 11
From Ship to Shore, Mine to Ore, Power to Rail and Road – Sustainable Transport
—ABB contribution to sustainable development
January 10, 2020 Slide 12
As one of the world’s leading engineering companies,we help our customers to use electrical power efficiently, to increase industrial productivity and to lower environmental impact in a sustainable way.
We contribute directly and indirectly to all 17 SDGs, through our technology and by operating our business responsibly.
With its pioneering technologies, ABB directly enables 7 SDGs where we have the highest impact.
—
“The business and sustainability agendas have never been more closely interlinked. The success of one is unthinkable without the other.”
– CEO, 2018
ABB CEO statements on sustainability
January 10, 2020 Slide 13
“A value creator, embedded in the business”
—What matters most to our stakeholders
January 10, 2020 For further information/ details see http://new.abb.com/sustainability/creating-value/material-issuesSlide 14
ABB Materiality Matrix 2017
Rele
vanc
e to
sta
keho
lder
s Hig
hM
ediu
m
Medium High
Responsible sourcing
Human rights
Products, services and solutions
Energy efficiency and climate change
Integrity
Resource efficiency
Stakeholder engagementSafe, healthy and secure operations
Right materials Developing our people
Impact on ABB
—Group sustainability framework
January 10, 2020 Slide 15
Products, Services and Solutions
Pioneering technology
Safe operations
Climate action
Responsible sourcing
Right materials
Resource efficiency
Responsible operations
Integrity Our peopleHuman rights
Responsible relationships
—ABB Sustainability objectives 2020
January 10, 2020 Slide 16
Pioneering technology
Increased share of ABB’s eco-efficiency portfolio to 60% of ABB revenues
Responsible operations
Reduce employee total incident frequency rate (TRIFR) to less than 0.7.
Responsible relationships
Over 96% of employees trained on integrity.
We can run the world without consuming the earth
Reduce greenhouse gas emissions (GHG) by 40%.
Over 70% of employees to be covered by the ABB well-being program.
Close over 65% of identified risks from supplier assessments.
Increase females in senior management by 30% (vs 2017).
Provide human rights training for specific job roles exposed to risks with two targeted campaigns per year.
Reduce water consumption in water stressed areas by 25%.
Reduce waste generated by 20%.
Reduce Volatile Organic Compounds (VOCs) by 20%.
—ABB eco-efficiency product portfolio
1 Excludes sales into: tar sands, shale fracking, nuclear power, military useJanuary 10, 2020 Slide 17
Energy efficiency
Energy efficient products, systems, solutions and services (>10% higher than reference)
Renewable energy
Sales into: solar, wind, hydro, wave & tidal, geothermal, biomass
Resource efficiency
Environmental protection, resource management and enablers for efficiency
Accounting for 57 percent of ABB’s revenue in 20181
– IE3/IE4 motors – Low-loss transformers– Turbochargers– Variable frequency drives– Building automation systems
– Solar inverters– Wind generators & converters– HVDC offshore wind connections– Renewable energy integration– Microgrids/ Smart Grid
– EV charging stations– GIS with SF6 replacement– Transformers with biodegradable oil– Gas/ electricity/ flow meters– SCADA/ DCS/ PMS– Emax 2 circuit breaker
—ABB sustainability progressExamples from inside ABB
—Using biofuel for production processes in Mysore, India
January 10, 2020 Slide 19
Moving towards a circular economy
We use the waste from local agricultural production to power our furnaces, and then the waste from our production processes is used by the farmers to grow their crops.
The ash from our furnace is also delivered to local farmers. An excellent organic soil conditioner and fertilizer, this ash reduces local farmers’ need for chemical fertilizers.
—Working with underprivileged children in Brazil
January 10, 2020 Slide 20
Education brings hope
Instituto ABB has worked with over 400 underprivileged children, offering complimentary education, food, health and social assistance through its Child Hope program.
The majority of children engaged by the institute have graduated from high school and avoided the cycle of crime, addiction and poverty that is endemic in their communities.
—Examples of ABB sustainability progressSome customer examples
—Using water wisely
January 10, 2020 Slide 22
Bringing water to make a sustainable community
—
Optimizing various power sources
• photo voltaic,
• generator and
• city power supply
• – with a microgrid system to power the ICRC Regional Logistic Center Nairobi
Partnering with the International Committee of the Red Cross (ICRC)
January 10, 2020 Slide 23
ABB Microgrid Technology
—Supplier Sustainability – Risks and Opportunities ABB’s SSDP
—ABB Supplier Sustainability Development Program (SSDP)
January 10, 2020 #Modern Slavery #Trafficking #Traceability #Safety #Environment Impact #Human RightsSlide 25
Risks and Opportunities
New global laws mandate:• Due diligence of supply chains
‘globally’
• Public disclosure of vulnerabilities
and actions taken
Evolving regulatory landscape
—Human Rights and Supply Chain due diligence
January 10, 2020 Slide 26
—ABB Supplier Sustainability Development Program (SSDP)
January 10, 2020 *Supplier Risk Transformation as on Q42018Slide 27
Helping suppliers and customers stay ahead of curve
Supplier Sustainability Development Program (SSDP) helps customers:
• Comply with new & upcoming
supply chain laws
• Realize the value differential (CQ+)
for competitive advantage
Video 1 Video 2 Video 3
Operational improvement... By-product of sustainability
• Improved On Time Delivery- up to 23%
• Reduced machine breakdown- up to 43%
• Reduced excess overtime work- up to 60%
• Improved production cycle time- up to 2X
• Risk screening and onsite audit of ABB suppliers feeding into customer products
• Special trainings, joint implementation to build capacity and mitigate risks
• 17 high risk countries; >1450 key suppliers; 76% of identified risks mitigated <live>
—Thank you
January 10, 2020 Slide 28