Christian Kornevall ABB Sustainability Affairs

1. Christian KornevallABB Sustainability Affairs Good morning. I will try to present the 2001 ABB‘s Group Sustainability Report and to point at some of our priorities for the future.Good morning. I will try to present the 2001 ABB‘s Group Sustainability Report and to point at some of our priorities for the future.

2. It all started in 1992, after RIO. ABB decided to walk the talk. An environment dept was created and it focused on ABB‘s manufacturing sites. In 1993 the first EMS was introduced. And as Joergen Centerman showed we reached about 50 % of the sites in 1996/7 and today we are up to 98 % In1994 the first Environemantal Report was published.In the middle of the nineties ABB introduced the Life cycle assessment tool. We are applying this tool on core products as well as in product development. It is the base for producing EPD, decribing the envrionmental impact of a specific product along the whole cycle- cycle. 1999 ABB started to focus on the social policy through conducting case studies on our own social performance in different countries.In 2001, ABB adopted a social policy and decided to move towards a triple bottom line reporting .And today we present the first Triple bottom line report to you. It all started in 1992, after RIO. ABB decided to walk the talk. An environment dept was created and it focused on ABB‘s manufacturing sites. In 1993 the first EMS was introduced. And as Joergen Centerman showed we reached about 50 % of the sites in 1996/7 and today we are up to 98 % In1994 the first Environemantal Report was published.In the middle of the nineties ABB introduced the Life cycle assessment tool. We are applying this tool on core products as well as in product development. It is the base for producing EPD, decribing the envrionmental impact of a specific product along the whole cycle- cycle. 1999 ABB started to focus on the social policy through conducting case studies on our own social performance in different countries.In 2001, ABB adopted a social policy and decided to move towards a triple bottom line reporting .And today we present the first Triple bottom line report to you.

3. Some Highliths from 2001: Read them out! Some Highliths from 2001: Read them out!

4. Sustainability is part of ABB's mission and values. It is key to our value creation. Our challenge is to transform sustainability into customer value. We are convinced that the right balance will......Sustainability is part of ABB's mission and values. It is key to our value creation. Our challenge is to transform sustainability into customer value. We are convinced that the right balance will......

5. Read out first point and then.... At all sites. More and more of ABB sites are non-manufactoring, R&D, Sales, Service, Engeneering, Administrative centres, etc...- Our aim is to reach 100% of our employees Eco-efficiency for a technology and power company like ABB is where we can contribute most. For the common efforts Access to Electricity will be our key focus in the future. Read out first point and then.... At all sites. More and more of ABB sites are non-manufactoring, R&D, Sales, Service, Engeneering, Administrative centres, etc...- Our aim is to reach 100% of our employees Eco-efficiency for a technology and power company like ABB is where we can contribute most. For the common efforts Access to Electricity will be our key focus in the future.

7. We are inspired by GRI - the global reporting Initiative. However, we did not apply all 96 plus indicators-some were not relevant to ABB and others we did not have a system to deal with them. The GRI gives a particular challenge for a global company to aggregate national indicators from 100 countries. We extended the number of environmental indicators from 36 to 48 And we included many more indicators for the social field. We do not count them in the same way as environmental indicators, because many are very descriptive. And as regards the economic performance we compared it against set company targets. We are inspired by GRI - the global reporting Initiative. However, we did not apply all 96 plus indicators-some were not relevant to ABB and others we did not have a system to deal with them. The GRI gives a particular challenge for a global company to aggregate national indicators from 100 countries. We extended the number of environmental indicators from 36 to 48 And we included many more indicators for the social field. We do not count them in the same way as environmental indicators, because many are very descriptive. And as regards the economic performance we compared it against set company targets.

8. Primary fuel as well as District heat are only used to heat up the buildings. The change in number is due to many factors, change in fuel storage level , reporting periods, and that there are more additional sites included in the report. Primary fuel as well as District heat are only used to heat up the buildings. The change in number is due to many factors, change in fuel storage level , reporting periods, and that there are more additional sites included in the report.

9. In total we had 66 incidences: - 41 related to spills of oil or chemicals - 12 fires - 11 discharges of contaminated water - 2 gas leakages Here are some examples......action taken. Look at the SF6- accident- we lost 130 kg into the air which cooresponds to 3.200 tonnes of CO2, equal burning of 1.400 tonnes of coal. That corresponds to 4 GWh Now moving on to our social performance.....In total we had 66 incidences: - 41 related to spills of oil or chemicals - 12 fires - 11 discharges of contaminated water - 2 gas leakages Here are some examples......action taken. Look at the SF6- accident- we lost 130 kg into the air which cooresponds to 3.200 tonnes of CO2, equal burning of 1.400 tonnes of coal. That corresponds to 4 GWh Now moving on to our social performance.....

10. In total we had 66 incidences: - 41 related to spills of oil or chemicals - 12 fires - 11 discharges of contaminated water - 2 gas leakages Here are some examples......action taken. Look at the SF6- accident- we lost 130 kg into the air which cooresponds to 3.200 tonnes of CO2, equal burning of 1.400 tonnes of coal. That corresponds to 4 GWh Now moving on to our social performance.....In total we had 66 incidences: - 41 related to spills of oil or chemicals - 12 fires - 11 discharges of contaminated water - 2 gas leakages Here are some examples......action taken. Look at the SF6- accident- we lost 130 kg into the air which cooresponds to 3.200 tonnes of CO2, equal burning of 1.400 tonnes of coal. That corresponds to 4 GWh Now moving on to our social performance.....

11. Just to pick one principle from our social policy presented by Joergen. That is Non-discrimination of any kind, age, sex,ethnic origen.etc... We are monitoring discrimination within the Group and we have not registred any litigation in 2001. But this tableregarding women is not very impressive.  However, women are clearly under represented in our industry, Just to pick one principle from our social policy presented by Joergen. That is Non-discrimination of any kind, age, sex,ethnic origen.etc... We are monitoring discrimination within the Group and we have not registred any litigation in 2001. But this tableregarding women is not very impressive. However, women are clearly under represented in our industry,

12. Stakeholder dialogue We introduced the social policy and we are using stakeholder dialogues as the instrument to test, to improve and to benchmark our social performance. We ask the outside to give us guidance. We held 45 sessions in 34 countries. It was done different in different countries. In Austria. it was done on a stage allowing all staff to watch and partcipate. This is an ongoing committment We introduced the social policy and we are using stakeholder dialogues as the instrument to test, to improve and to benchmark our social performance. We ask the outside to give us guidance. We held 45 sessions in 34 countries. It was done different in different countries. In Austria. it was done on a stage allowing all staff to watch and partcipate. This is an ongoing committment

13. The idea is to also to include stakeholders with views ( strong ) on ABB. Not only friends. There is one stakeholder missing, that is the shareholders, who have been excluded and are dealt with separately. As you see the NGOs were in a majority. The idea is to also to include stakeholders with views ( strong ) on ABB. Not only friends. There is one stakeholder missing, that is the shareholders, who have been excluded and are dealt with separately. As you see the NGOs were in a majority.

14. Comments to extend our policy: a few examples Policies to work in conflict zones Protection of indigenous peoples Abuse of human rights by own eployed security forces Standard for corporate governence Cultural variations should be respected Concrete help in eradicating poverty – a key priority Suppliers‘ performance needs special attention Too focused on labour rights As you can see community involvement was the most discussed principle. Comments to extend our policy: a few examples Policies to work in conflict zones Protection of indigenous peoples Abuse of human rights by own eployed security forces Standard for corporate governence Cultural variations should be respected Concrete help in eradicating poverty – a key priority Suppliers‘ performance needs special attention Too focused on labour rights As you can see community involvement was the most discussed principle.

15. Priority principle identfied by the dialogues: We made the same question to our sustainability controllers, The top 3 priority principles was OHS 27/32 Community Involvement 19/32 Suppliers 12/ 32 Priority principle identfied by the dialogues: We made the same question to our sustainability controllers, The top 3 priority principles was OHS 27/32 Community Involvement 19/32 Suppliers 12/ 32

17. You can see from the slide what type of projects: Very much focused on Global warming and Resource depletion.... The whole a idea around ISO 14001 is to generate continuous improvement projects. ABB is running 1000-2000 projects at any time. Small steps but together having a huge effect on our performance. In order to further motivate and promote the process we have adopted a environment award scheme. You can see from the slide what type of projects: Very much focused on Global warming and Resource depletion.... The whole a idea around ISO 14001 is to generate continuous improvement projects. ABB is running 1000-2000 projects at any time. Small steps but together having a huge effect on our performance. In order to further motivate and promote the process we have adopted a environment award scheme.

19. Here is one example..from Baden..Here is one example..from Baden..

20. One example from Singapore To finisk my presentation I like to point to some of ABBs up and coming challenges in the sustainability field. One example from Singapore To finisk my presentation I like to point to some of ABBs up and coming challenges in the sustainability field.

21. Integrate sustainability into all management systems Raise susainability awareness in the Group Extend our Environmental Management System to non-manufacturing activities Implement our social policy worldwide Integrate Group-wide standard foroccpational health and safety Help combat poverty through our “Access to Electricity” program We are starting to integrate sustainability in a few business areas this autumn in order to role it out to all business areas in 2003. We will also use external opportunities( like Rio plus 10) to raise awarness but with a focus on front end staff in contact with customers To reach all employees by EMS - Implementation of social policy worldwide. One important priority will be OHS- we need to secure highest Group standards worldwide in manufacturinmg but also on other sites. And finally,Help combat poverty through our Access to electricity programWe are starting to integrate sustainability in a few business areas this autumn in order to role it out to all business areas in 2003. We will also use external opportunities( like Rio plus 10) to raise awarness but with a focus on front end staff in contact with customers To reach all employees by EMS - Implementation of social policy worldwide. One important priority will be OHS- we need to secure highest Group standards worldwide in manufacturinmg but also on other sites. And finally,Help combat poverty through our Access to electricity program

22. More and more customers are focusing on the supply chain – social as well as environmental- Text of the slide How can we improve our logistics.!!! Thank you very much As regards the report , we have put a lot of efforts into our first triple bottom line, we would realy welcome your feedback... Thanks More and more customers are focusing on the supply chain – social as well as environmental- Text of the slide How can we improve our logistics.!!! Thank you very much As regards the report , we have put a lot of efforts into our first triple bottom line, we would realy welcome your feedback... Thanks