ABBs sustainability strategy essentially includes making sure that the sustainability values are understood, implemented and incorporated throughout the value chain so that they become a part of the way of doing business at ABB. ABB follows a triple bottom line approach aimed at achieving a balance in the economic, environmental and social impact of the companys business to benefit all our stakeholders.PLANETABB seeks to minimize the environmental impact of their technology and products by ensuring that their manufacturing processes are environment friendly and energy efficient.

It also passes on its expertise to customers and suppliers by sharing their best practices. For example, water-borne paint systems developed at one factory have been introduced at similar sites worldwide to reduce emission of organic solvents.

At ABB, 900 sustainability specialists , most of them based out of factories, strive to implement and ensure that all manufacturing facilities (ABBs approximately 550 sites and offices),comply with ISO 14001 and OHSAS 18001international standards on the management of environment and health and safety risks.

ABB's products, systems, solutions and services are designed to improve our customers' businesses - centered on improving grid reliability and increasing industrial productivity - while lowering environmental impact. A few examples are discussed below:Improving the efficiency of their buildingsEnergy management is an integral part of their role, guided by the ABB Green Building Policy and now, supported by the Green Corporate Real Estate Management (Green CREM) strategy developed by ABB in Germany.The Green CREM system aims to increase energy efficiency and improve sustainability within the entire real estate portfolio by indicating potential or necessary improvement measures at the site through two steps first, an energy efficiency analysis and second, an analysis of ecological quality of the site. Regular re-evaluations provide before-and-after comparisons following the implementation of measures, as well as an objective overview of the level of environmental performance achieved.

The Green CREM system has been implemented across the 20 main sites of ABB in Germany, allowing online analysis of energy data and ongoing implementation and tracking of improvement measures. So far, the program has reduced energy consumption by 35,000 MWh and CO2emissions by 8,000 tons.

Green CREM has been so successful in Germany, we are now implementing stage one (energy efficiency) of the CREM system across Europe. The program is being rolled out to more than 100 locations in 15 countries. By the end of 2014, the energy monitoring phase will be substantially implemented across Europe.

Protecting the watershed

ABB has developed an in-house tool for mapping and analysis of water flows at our facilities. This tool is now being used to develop and track water action plans at our manufacturing facilities located in water-scarce and extremely water-scarce watersheds.First, regular monitoring of water consumption was implemented, leaks identified and recovery measures taken up. The plan also implemented an awareness raising and water conservation training program. Posters were displayed on Quality, Health, Safety and Environment boards throughout the facilities and training on water conservation measures were conducted for all employees.

Secondly, the water recycling systems were improved to increase efficiency providing better quality output and avoiding the need for additional clean water.The improvement programs are beginning to show results: simple steps are bringing the dual benefits of reduced environmental impacts and lower utility bills. It has been implemented at many of ABBs facilities like ABB Al Quoz facility in the United Arab Emirates, ABB Xiamen Electrical Controlgear Company in China, ABB facility located in Riyadh, Saudi Arabia and many more.

Reducing VOCs transforming industry standards

At ABB, Transformers Business Unit uses approximately 3,500 tons of paint per year. As conventional solvent-based paints dry, they emit VOCs as a vapor, which react with other pollutants and sunlight to form harmful ground-level ozone and other oxidants known as smog. These are harmful to health and the environment.ABB has almost completed our most extensive program to decrease the emission of hazardous substances: the Volatile Organic Compounds (VOCs) reduction program. This initiative, involving our factories in 27 countries, involves reducing VOC emissions in the painting processes by replacing solvent-based paint with water-based and high-solid paints.

ABB has also developed reduced VOC painting systems based on the Institute of Electrical and Electronics Engineers (IEEE) and International Organization for Standardization (ISO) international standards, setting new industry benchmarks for product performance and low environmental impact.. The lower VOC paint also decreases the amount of energy needed in the paint application and drying processes.

PEOPLEEmployees:ABB has developed OHS Behavior standard at all levels of the organizations with an aim to achieve the OHS goal of zero incidents. Workshops have been conducted in major countries to train the assessors on evaluate baseline behavior. Employees will be required to include health and safety goals in their annual objective.ABB has also introduced a hazard reporting indicator throughout the group so that all the near misses and hazards can be investigated and root causes be analyzed that can help in reducing the chance of future incidents.

ABB has a dedicated Group Service OHS Advisor, responsible for aligning Service OHS with ABB Group standards and coordinating activities throughout regional, country and BU service organizations.This team ensures that at country level the OHS strategic plans are tailored according to local conditions and business needs within our global priorities and framework.

Performance and implementation of the training and development programs are monitored

quarterly at Group level.

SUPPLY CHAIN:ABB Suppliers code of conduct and Suppliers Sustainability Development Program are effective tools develop to raise awareness and incentivizing the suppliers to continuously improve their performance and also provide specific requirements around material compliance and procurement policies. Under the program, the suppliers receive training on sustainability standards and performance as well as a platform to receive assistance from the ABB group.In 2013, a new section has been added to describe the channels through which the suppliers can report any misconduct at ABB.The SSDP can help suppliers tap productivity potential and enable growth, as is illustrated in the case of ABB supplier in India, Excel Engineering.

Excel Engineering Industries was selected for participation in the SSDP in 2013. One of the major challenges faced by Excel was extended working hours to meet production schedules. To address ABBs concerns about compliance with the ABB Supplier Code of Conduct and applicable labor laws, Mr.Prabhakar Pawar, the CEO of Excel Engineering, undertook a review of workforce which revealed that 25-30 percent of the skilled, permanent workforce were involved in unskilled operations such as packing, material handling, material storage and sub-assemblies.

A realignment work practices was undertaken; unskilled contract workers were engaged for these activities, thereby freeing up the skilled workforce for production. This reallocation resulted in a 10 percent increase in the average monthly production output, while reducing the average monthly labor input by 17 percent. In the end, the work undertaken to solve a chronic overtime and labor compliance issue resulted in a productivity increase of over 30 percent.

COMMUNITY:

ABB strives to contribute to development and progress of the communities in which it operates The Group has more than 300 projects worldwide with the focus on education, health and environmental projects. ABB employees take part in a wide range of volunteering activities, and contribute financially to charities and projects worldwide. A few examples are as discussed below:

Helping differently abled people to live with dignity

In collaboration with SevaTirth, an NGO in Vadodra, ABB started outsourcing parts of its electric relay assembly to people with leprosy and different deformities living here. , ABB gives the workers the raw material and fabric kits, and provides training at both ABB and on-site so they can assemble and test electrical relays.By providing them with means to earn a living, respect and appreciation of their work, they have helped build their confidence and exposed them to a sense of inclusiveness.

Abb is also a major sponsor and provides volunteer support to Special Olympics in Germany. Every year, about 150 ABB employees spend a week of their holidays helping the mentally handicapped people take part in the Special Olympics. Senior managers work with factory workers to reiterate ABBs commitment to inclusiveness in the society

Building a Future for the Young

At Sao Paulo, under the project called Children with a future full of hope, ABB works in partnership with local municipal workers to train children of the age between 8-15, in a variety of skills that would normally not be available to them, like computer skills, English, classical music, etc. Parts of the factories at ABB have been converted into classrooms for children. The program has been very impressive so far with 75% of the children securing a job and 30% going to universities for higher education.