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ABB’s 2023 Annual Integrated Report: A Comprehensive Overview of Strategy, Governance, and Sustainability Driving

Report covers ABB’s 2023 strategy, business, governance, financial and sustainability performance 76 percent reduction of scope 1 and 2 GHG emissions since 2019 74 megatons CO2e emissions avoided throughout lifetime of products sold in 2023

Dew Briefs:

  • ABB’s Integrated Report covers strategy, business, governance, financials, and sustainability.
  • The 2023 Annual Reporting Suite includes key reports filed with the SEC.
  • Chairman Peter Voser focuses on technology leadership, value creation, and sustainability.
  • ABB’s value creation model shows how it benefits stakeholders.
  • CEO Björn Rosengren highlights strong performance and contributions to the energy transition.
  • ABB’s solutions optimize sectors, reduce carbon emissions, and promote sustainability.

Diver Insights:

ABB demonstrates commitment to sustainability through emissions reduction and initiatives.
  • ABB has submitted updated CO2e emissions reduction targets aligned with the Net-Zero Standard of the Science-Based Targets initiative (SBTi) for validation.
  • The company aims to reduce its scope 1 and 2 emissions by 80 percent by 2030 and 100 percent by 2050, compared to a 2019 baseline.
  • ABB also aims to cut its scope 3 emissions by 25 percent by 2030 and 90 percent by 2050, compared to a 2022 baseline.
  • In 2023, ABB achieved a reduction of 76 percent in its scope 1 and 2 emissions compared to 2019.
  • Scope 3 emissions stayed flat compared to 2022 based on measured energy loss, but increased by 11 percent when calculated based on energy input.
  • The company reduced its energy consumption by 21 percent compared to 2019, with 64 percent of energy consumption and 94 percent of electricity coming from renewable sources.
  • ABB’s products sold in 2023 will avoid 74 megatons of emissions over their lifetime, contributing to the goal of avoiding 600 megatons of GHG emissions from 2022 to 2030.
  • ABB reduced the amount of waste sent to landfill to 6.3 percent in 2023, a 40 percent reduction since 2019, and recycled 86 percent of its waste.
  • The company assessed 31 percent of its product portfolio as part of its goal to cover at least 80 percent with its Circularity Approach by 2030.
  • ABB reduced its rate of lost time caused by injuries (LTIFR) by 9 percent and increased the number of women in senior management positions to 21 percent in 2023.
  • The company expanded its programs for community engagement, supporting over 500 community projects and charities in 2023.

ABB has released its Integrated Report, serving as the primary report at the Group level. This report includes essential information on ABB’s strategy, business, governance, financial performance, and sustainability efforts. Alongside this, ABB has also published its 2023 Annual Reporting Suite, which consists of the Financial Report, Corporate Governance Report, Compensation Report, Sustainability Report, and Form 20-F filed with the United States Securities and Exchange Commission.

Chairman Peter Voser emphasized ABB’s technology leadership in electrification and automation, along with its decentralized operating model, creating holistic value for stakeholders and contributing to a sustainable future. ABB capitalized on a positive market environment and strong demand drivers in 2023, achieving financial and sustainability milestones.

CEO Björn Rosengren praised ABB’s record year in 2023, highlighting its role as a technology leader in accelerating the energy transition towards a net-zero future. ABB’s solutions helped optimize, electrify, and decarbonize sectors responsible for global energy-related carbon emissions, making progress towards sustainability targets and creating value for stakeholders.

ABB aims to foster transparency and trust by publishing its Integrated Report and Annual Reporting Suite. These documents provide stakeholders with a comprehensive overview of the company’s strategy, financial performance, and sustainability efforts. By showcasing its value creation model and commitment to innovation, ABB underscores its dedication to stakeholder engagement and sustainability.

Through these reports, ABB aims to transparently communicate its achievements, challenges, and objectives to stakeholders, including investors, employees, customers, suppliers, and regulatory bodies. By sharing insights into its technology leadership in electrification and automation, as well as its decentralized operating model, ABB seeks to demonstrate how it creates holistic value for all stakeholders while contributing to a more sustainable future.

Overall, ABB’s reports showcase its strategic focus, financial performance, sustainability efforts, and commitment to creating value for stakeholders while promoting a sustainable future.

About ABB:

  • ABB is a technology leader in electrification and automation.
  • The company has a history of over 140 years of excellence.
  • The company aims to enable a more sustainable and resource-efficient future.
  • ABB’s solutions connect engineering know-how and software to optimize manufacturing, movement, power, and operations.
  • ABB has more than 105,000 employees who are dedicated to driving innovations that accelerate industrial transformation.

Jatin is an EV researcher and author. He specializes in electric chargers and batteries field.