Exane 2nd SRI Conference in Paris November 26, 2014 Sustainability at ABB Adam Roscoe, Head of Sustainability Affairs Ron Popper, Head of Corporate Responsibility ABB 11/19/2014 Slide 1
Agenda ABB: well positioned in attractive markets Sustainability overview Resource efficiency Sustainability risk management Ethics and integrity ABB 11/19/2014 Slide 2
Well positioned in attractive markets ABB today What (Offering) Power & Automation Power 40% of revenue Automation 60% of revenue For whom Transport & (Customers) Utilities Industry Infrastructure 35% of revenue 45% of…
Well positioned in attractive markets Power & automation demand drivers in three customer segments Industry Productivity 250 bn Energy efficiency Automation penetration Utilities Power quality and reliability Emerging markets…
Well positioned in attractive markets A leader in power & automation in all our segments examples Power & Automation Utilities 1 in transmission and distribution Largest installed T&D3 base Technology pioneer (FACTS1, HVDC2 breaker,…
Well positioned in attractive markets A true global player team, culture, and presence Revenue Top 200 split 2013 Europe managers 14.4 bn 34% 3/4 from outside Americas Switzerland and Sweden Mature 12.1 bn 29% 27…
Agenda ABB: well positioned in attractive markets Sustainability overview Resource efficiency Sustainability risk management Ethics and integrity ABB 11/19/2014 Slide 7
Power and productivity for a better world ABBs vision As one of the worlds leading engineering companies, we help our customers to use electrical power efficiently, to increase industrial productivity and to lower environmental…
Sustainability What it means to ABB Innovation For ABB, sustainability is Revenue growth Return on capital employed about balancing economic Risk Management success, environmental 1 Economic Brand value Success Margin improvement…
Drivers for enhanced Sustainability focus in ABB Customer Strengthened laws Investor Value chain & Employees requirements & standards expectations society Require information Conflict Minerals Require information Dedicated and From…
Our journey Integrating Strategy 2014-2020 sustainability into Supply Chain Development Program everyday business Security Risk Assessment Human Rights Energy Efficiency Health & Safety (policy and reporting) Social Focus…
ABBs sustainability goal for 2020 By 2020 and beyond, ABB will be recognized as a leading contributor to a more sustainable world through its unique business offering and sustainable business practices These help us capitalize…
Group Sustainability Objectives Ambitions 2020, KPIs and targets Objective Ambition 2020 KPIs and targets 2020 1. Products ABB is a world leading supplier of innovative, safe and resource efficient 20% revenue increase from EE-related…
Agenda ABB: well positioned in attractive markets Sustainability overview Resource efficiency Sustainability risk management Ethics and integrity ABB 11/19/2014 Slide 14
Main environmental challenge: soaring demand for energy while emissions need to be reduced EU and North America 7.1% 25% China 98% 210% M. East and Africa India IEA scenario 2008-35 Latin America 66% 128% Growth in primary…
Developing sustainability of products and operations Lowering environmental impact and costs Sustainable products Sustainable operations Focus on resource and energy Cuts targeted in use of energy, raw efficiency of equipment over…
Energy efficiency in own production key to cutting ABBs greenhouse gas emissions Internal efforts to mitigate greenhouse gas emissions focus on: Energy efficiency in own production Green real estate management SF6 management…
ABB: a world leader in energy and resource efficiency ABB is worlds Largest supplier of high-efficiency power grids to integrate renewable energy Largest manufacturer of energy efficient industrial motors and drives Largest…
Value for our business Revenues Renewables Wind 51% of revenues 200 GW of 40,000 wind from products and renewable energy turbines worldwide are solutions related to integrated with help of equipped with ABB renewable energy,…
Managing our own environmental performance Internal processes in place Low electricity use Low emissions Lowering energy use 1.8 TWh 1.9 million tons of 2.5% reduction in (Terawatt hours) of greenhouse gases are energy use per…
Agenda ABB: well positioned in attractive markets Sustainability overview Resource efficiency Sustainability risk management Ethics and integrity ABB 11/19/2014 Slide 21
Health, safety and integrity: a leadership issue CEO launches Dont look the other way initiative in 2014 to highlight health, safety and integrity. Global health and safety week in November. ABB 11/18/2014 Slide 22
OHS Performance Lost Time Incident Trends 2005 2013 LTI rates Rate (per 200,000 hours) ABB 11/19/2014 Slide 24
Responsible sourcing at ABB Name Goal More information Conflict Minerals Determine if suppliers source conflict ABB.com Program minerals, and if so, investigate the Inside ABB origin of these minerals. Annual E-learning reports to…
Supplier Sustainability Development Program Overview Ensure compliance with ABB Supplier Code of Conduct Goals Support improvement of sustainability performance of our suppliers Provide customers with a highly competitive &…
Sustainability in our business: Security Working in risky environments ABB is present in challenging security environments. Global network of security specialists work with business to Ensure employee and contractor safety at…
Sustainability in our business: Labor/human rights Identifying risks Internal specialists work closely with business to Carry out due diligence on projects (e.g.hydro, mining, pulp and paper) Identify and mitigate risks for…
Managing involvement in sensitive countries/projects Internal directives and instructions cover Which countries ABB does business in and under what conditions; approvals processes Assessment of sensitive countries takes into account…
Community engagement: Overview Goal: To raise quality of life in communities where we operate Focus areas Education Health Volunteers: 5,000 person-days contributed in 2013 Contributions: 8.5 million allocated to nearly 300…
Agenda ABB: well positioned in attractive markets Sustainability overview Resource efficiency Sustainability risk management Ethics and integrity ABB 11/19/2014 Slide 31
ABBs commitment to integrity A robust, advanced global program The Code of Conduct explains the behavior ABB expects of its employees and stakeholders, and practical instructions to help employees in their day- to-day work Based on…
Committed to the highest standards of business ethics Integrity as bedrock of ABBs global culture At ABB performance is measured not only by the results achieved, but also how these results were achieved. This is why our stakeholders…
For more information, call ABB Investor Relations Or visit our website at www.abb.com/investorcenter Name Telephone E-mail Zurich, Switzerland Alanna Abrahamson +41 43 317 3804 alanna.abrahamsonch.abb.com Head of Investor…