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M o t i o n S u s t a i n a b i l i t y P l a y b o o k
— ABB Motion is dedicated to advancing sustainability by leveraging the broader Group’s Sustainability Agenda 2030 and tailoring it to meet the specific needs and challenges of our portfolio and customers we serve. This approach ensures that our initiatives are not only aligned with ABB’s overall sustainability goals but also directly address the unique environmental, social, and economic impacts of our portfolio and customer base. — ‘As a global leader in motors and drives, ABB Motion focuses on enhancing productivity in a low- carbon world. We do this by advancing technologies that improve energy efficiency, decarbonization, and circular solutions. We prioritize resource preservation through product design, and processes that maximize efficiency and reliability, extend product life, and encourage recycling and reuse. By focusing on these three enablers—energy efficiency, decarbonization, and circularity—we ensure that our customers benefit from our solutions while contributing to a more environmentally responsible future.’ S u s t a i n a b i l i t y F r a m e w o r k N a r r a t i v e Brandon Spencer President Motion 3 M O T I O N S U S T A I N A B I L I T Y P L A Y B O O K 4
— Motion Sustainability Framework 5 M O T I O N S U S T A I N A B I L I T Y P L A Y B O O K 6
— Table of contents 7 M O T I O N S U S T A I N A B I L I T Y P L A Y B O O K TAP ON THE TITLE TO GO TO THE CHAPTER 8 029 032 023 031 004 021 003 Contact Useful links Key glossary Dos & Don'ts Frequently asked questions Motion Sustainability Framework Sustainability Framework Narrative
GROWING POPULATION TECHNOLOGICAL ACCELERATION CLIMATE CHANGE RESOURCE SCARCITY T H E W O R L D I S M O V I N G F A S T … The world is changing at an unprecedented pace. Population is projected to reach 9.7 billion by 2050 whilst technological advancements are accelerating rapidly. As population increases, so does the demand for energy and other essential resources. Technological advancements, while driving economic growth and improving quality of life, also contribute to higher industrial activity and energy use. This, in turn, leads to increased greenhouse gas emissions, accelerating climate change and its associated impacts, such as global warming, rising sea levels, and extreme weather events. The shift towards clean energy technologies, necessary to combat climate change, intensifies the need for resources. 9 M O T I O N S U S T A I N A B I L I T Y P L A Y B O O K — The world is moving fast… — Thus, the interplay between population growth, technological progress, climate change, and resource depletion underscores the current need for sustainable solutions to ensure a balanced and resilient future. 10
In response to these megatrends, regulations are evolving to address them, investment decisions are shifting accordingly, and sustainabil- ity consciousness is rising all over the world. Over the past decade, sustainability-related regulations have evolved significantly, driven by the urgent need to promote transparency and accountability in corporate practices, and ultimately direct capital towards sustainable businesses. Motors and drives currently con- vert over 45 percent of the world's electricity, with more than 300 mil-lion motors in oper- ation today. With the critical need of the industry to support the electrification of processes and to adopt more energy-effi- cient solutions, this figure is pro- jected to double by 2040. Im- proving the energy efficiency of industrial motor driven systems is essential because it leads to sig-nificant energy savings, re- duces greenhouse gas emis- sions, and lowers operational and maintenance costs. It also helps companies comply with en- ergy regulations and supports sustainability goals, en-hancing their reputation. By focusing on energy efficiency, industries can balance economic benefits with environmental responsibility. — As energy efficiency becomes a global priority, businesses are seeing higher demand for motor driven systems in new installations, in all sectors, particularly for critical infrastructure. A clear example is evi-denced by the growth of the motor market, which is driving progress in emerging industrial segments such as green hydrogen, carbon capture and storage, geothermal energy, among others 11 MOTION SUSTAINABILITY PLAYBOOK — Driving a change in industry… 12 — The business impact on Motion industry is… D R I V I N G A C H A N G E I N I N D U S T R Y … Evolving regulatory frameworks Shift in investment decisions Supply chain challenges Sustainability consciousness Need for fleet upgrade and conversion Higher demand for new installations Developing emerging 45% of the world’s electricity is converted by industrial electric motors into motion < 25% of the world’s industrial electric motors are controlled by drives Demand for electric motion to double by 2040 T H E B U S I N E S S I M P A C T O N M O T I O N I N D U S T R Y I S … to higherefficiency applications
As a global leader in electric motors and drives, ABB Motion, together with its customers and partners, play a pivotal role in driving the energy transition. We are committed to innovation and pushing technological boundaries to deliver energy efficient, decarbonization, and circular solutions for customers, industry, and soc iet y. Our digitally enabled drives, motors and services enable our customers and partners to achieve superior performance, safety, and reliability. With over 140 years of expertise, we provide motor-driven solutions for a wide range of applications across all industrial segments. Sustainability for ABB Motion means conducting business with a long-term perspective, understanding that our actions today will have lasting impacts for decades and centuries to come. It also means operating in a way that ensures our continued success and relevance. To achieve this, we are committed to enabling a low-carbon society, preserving resources, and promoting social progress, in line with ABB’s Sustainability Agenda 2030. In our efforts to preserve resources, we embrace circularity by designing products and processes that maximize resource efficiency, extend product lifecycles, and promote recycling and reuse. Our zero waste initiatives aim to eliminate waste sent to landfills by optimizing resource use, supporting recycling efforts, and innovating waste management practices. Promoting social progress is another cornerstone of our sustainability agenda. We prioritize zero harm and uphold human rights across our supply chain, ensuring the safety and wellbeing of our employees and communities. We foster a diverse and inclusive workplace where all individuals are valued and respected. Through active community engagement, We enable a low-carbon society by striving for net zero emissions. This involves addressing our Scope 1, 2, and 3 emissions, ensuring a comprehensive approach to reducing our environmental impact. Beyond our operations, we enable our customers avoid emissions and ramp up renewables and carbon-free we support local development. We energy, and work with our suppliers and partners to drive the change across the entire value chain. ensure that our sourcing practices are ethical and sustainable, working with suppliers who share our commitment to environmental and social responsibility. 13 MOTION SUSTAINABILITY PLAYBOOK — Our role as market leaders is to… — To achieve this, at ABB we stand for… O U R R O L E A S M A R K E T L E A D E R S I S T O … We drive change in electric motion together with our customers and partners to enable energy transition T O A C H I E V E T H I S , A B B S T A N D S F O R … WE ENABLE A LOW-CARBON SOCIETY WE PRESERVE RESOURCES WE PROMOTE SOCIAL PROGRESS Net Zero Scope 1 & 2 Scope 3 Circularity Zero Waste to Landfill Zero Harm & Human Rights Diversity & Inclusion Community Engagement Responsible Sourcing 14
15 MOTION SUSTAINABILITY PLAYBOOK — And offer win-win solutions to enable We help our customers electrify their operations and adopt renewable and carbon-free energy sources. Electrifying fleets and processes can significantly reduce carbon emissions, especially when the electricity is sourced from renewable and carbon-free energy. Our motors, drives, and converters support the expansion of renewable energy and the adoption of new energy sources like hydrogen. We aim to preserve resources, reduce waste, and encourage circular practices across our value chain. We prioritize using low-carbon mate- rials and design products for longevity and recyclability. For instance, our large motors are designed to be up to 98 percent recyclable. We also purchase low-carbon and recycled copper to meet the demand for our high-efficiency motors. Our products are engineered for dura- bility, and we provide services to extend their lifetime and reclaim them for reuse and recycling, preventing them from ending up in land- f ills. We leverage cutting-edge, high-efficiency solutions to help our custom- ers increase productivity while decreasing energy consumption. This is well in line with the International Energy Agency’s concept of energy ef- ficiency as the “first fuel,” emphasizing that every kilowatt-hour saved is one that doesn’t need to be generated. Our energy-efficient technolo- gies and services can lead to substantial savings and have the potential to reduce energy consumption by approx. 25 percent or more, which lowers carbon emissions and improves cost efficiencies. — As a global leader in motors and drives, ABB Motion focuses on enhancing productivity in a low-carbon world by advancing technology to improve energy efficiency, decarbonization, and circular solutions. We prioritize resource preservation through product design and processes that maximize efficiency, extend product life, and encourage recycling and reuse. By focusing on these three enablers—energy efficiency, decarbonization, and circularity—we ensure that our solutions benefit our customers while contributing to a more environmentally responsible future. Circularity Decarbonization Energy Efficiency A B B O F F E R S W I N - W I N S O L U T I O N S T O H E L P C U S T O M E R O U T R U N – L E A N E R A N D C L E A N E R , S U C H A S * … DECARBONIZATION ENERGY EFFICIENCY CIRCULARITY Analia Troncoso Global Head of Strategy, BD, Sustainability and Marketing 16
Electrification of processes and transportation Adoption of renewable and carbon-free energy, green hydrogen, and carbon capture Supply Chain Resilience Energy and Material Savings Reliability and Optimal Lifetime — By focusing on these three enablers, ABB Motion offers solutions that lead to significant outcomes: Our technologies support the growth of renewable and carbon-free energy sources, green hydrogen production, and carbon capture initiatives. By integrat- ing our high-efficiency solutions into renewable and carbon-free energy sys- tems, we enhance their efficiency and reliability. Electrifying operations, including fleets and industrial processes, is a corner- stone of our decarbonization strategy. By transitioning from fossil fuels to elec- tricity, we significantly reduce carbon emissions. For instance, converting die- sel-fueled heavy trucks in mining operations to electric vehicles not only cuts down on emissions, but also reduces operational costs and maintenance needs. Similarly, replacing oil-fired burners with electric heating in industrial processes like pulp drying enhances energy efficiency and reduces reliance on fossil fuels. Our motors and drives are engineered for durability and reliability. By providing monitoring, support, and preventive maintenance services, we ensure that our products perform optimally throughout their lifecycle. This not only extends the lifetime of our products, but also enhances their reliability, reducing the need for frequent replacements and minimizing downtime. Our retrofit services fur- ther extend the life of existing equipment, ensuring that our customers get the most out of their investments. Our focus on sustainability extends to our supply chain. By working with suppliers who share our commitment to environmental and social responsibility, we enhance the resilience of our supply chain. This ensures that we can continue to deliver high-quality products and services even in the face of disruptions. Our emphasis on ethical sourcing and the use of sustainable materials further strengthens our supply chain, making it more robust and adaptable to changing conditions. Energy efficiency is at the heart of our solutions. By optimizing the performance of motor-driven systems, we help our customers achieve substantial energy sav- ings. This not only reduces their energy bills but also minimizes their environ- mental footprint. Moreover, our commitment to circularity ensures that we use materials efficiently, prioritize low-carbon and recycled materials, and design products for longevity and recyclability. This approach leads to significant mate- rial savings and reduces waste. A B B O F F E R S W I N - W I N S O L U T I O N S T O H E L P C U S T O M E R O U T R U N – L E A N E R A N D C L E A N E R , S U C H A S * … Electrification of processes and transportation Adoption of renewable and carbon-free energy, green hydrogen, and carbon capture Avoided emissions Supply chain resilience Energy and material savings Reliability and optimal lifetime Responsible end of life 17 M O T I O N S U S T A I N A B I L I T Y P L A Y B O O K 18
— At the heart of the energy transition, industries have the power to turn sustainability into a driver of success. Through energy efficiency, decarbonization, and circularity, we provide our customers with win-win solutions, where business growth and sustainability fuel each other. This is not just a great position to be – it’s a compelling message to bring to the market. — By achieving these outcomes, ABB Motion not only supports customers in their sustainability journeys but also contributes to a more pro- ductive and sustainable future. Our solutions provide long-term benefits, reinforcing our commitment to sustainable development and creating value for all stakeholders. Avoided Emissions Responsible end of life Find out more in the full Narrative document We support our customers to become compliant with the relevant regulations by means of holistic circular solutions: we offer take-back services, leading to refurbishment, reuse or recycling of products and components and we provide instructions for responsible end-of-life treatment of our products. By enabling energy efficiency, electrification, and the use of renewable and car- bon-free energy sources, we help our customers avoid significant amounts of carbon emissions. Every kilowatt-hour of energy saved or generated from renewable and carbon-free energy sources translates into a reduction in greenhouse gas emissions. This contributes to global efforts to combat climate change and supports the transi- tion to a low-carbon economy. Elena Pazzini Global Head of Sustainability 19 M O T I O N S U S T A I N A B I L I T Y P L A Y B O O K 20 VISIT WEBSITE
Avoided emissions Emission reductions that occur outside of a product’s life cycle or value chain, but as a result of the use of that product, often in relation to efficiency improvements. In other words, they are the difference be- tween emissions that occur using a solu- tion and emissions that would have oc- curred without it (reference scenario). energy sources to mitigate climate change. Energy efficiency Practice of using less energy to perform the same task or produce the same outcome. This can be achieved through technologies, behaviors, and practices that reduce energy waste, leading to cost savings and reduced environmental impact. Circular economy Economic system aimed at eliminating waste and the continual use of resources. It contrasts with a linear economy, which follows a “take, make, dispose” model. The circular economy involves designing prod- ucts for longer use, reusing materials, and regenerating natural systems. Energy transition Global shift from fossil fuel-based energy systems to renewable and carbon-free en- ergy sources. This involves changes in en- ergy production, distribution, and consump- tion, aiming to reduce GHG emissions, improve energy security, and combat cli- mate change. Climate Change Long-term alterations in temperature, pre- cipitation, wind patterns, and other as- Environmental Product Declarations (EPDs) Standardized documents that provide trans- pects of the Earth's climate. These changes parent, verified information about the envi- are primarily driven by human activities that increase GHG concentrations in the at- mosphere. ronmental impact of a product throughout its lifecycle. EPDs are based on LCA data and follow international standards such as ISO 14025. They help consumers and businesses make informed decisions by comparing the environmental performance of products. Decarbonization Process of reducing carbon dioxide (CO₂) and other GHG emissions across various sectors, particularly energy, industry, and transportation. It involves transitioning to low-carbon technologies, improving en- ergy efficiency, and adopting renewable ESG Environmental, Social, and Governance. It re- fers to the three key factors used to evaluate the sustainability and ethical impact of an investment in a company or business. Human rights Fundamental rights and freedoms to which every individual is entitled, regard- less of nationality, sex, ethnicity, religion, or any other status. These rights include civil, political, economic, social, and cultural rights, and are enshrined in documents such as the Universal Declaration of Hu- man Rights (UDHR). N et-ze ro Reducing GHG emissions to as close to zero as possible, with any remaining emis- sions being balanced by removing an equivalent amount of carbon from the at- mosphere. It encompasses both direct emissions reductions and carbon removal efforts to ensure no net increase in atmo- spheric CO₂ levels. Science Based Targets initiative (SBTi) Collaboration between the CDP, UN Global Compact, World Resources Institute, and the WWF that helps companies set sci- ence-based targets for reducing GHG emissions. It provides guidance and valida- tion to ensure that corporate emissions re- duction targets are aligned with the latest climate science and the goals of the Paris Agre e me nt . Scope 1 Direct GHG emissions from sources that Find out more in the full Glossary of terms are owned or controlled by an organization. This includes emissions from combustion in owned or controlled boilers, furnaces, vehi- cles, and emissions from chemical produc- tion in owned or controlled process equip- ment. Scope 2 Indirect GHG emissions associated with the purchase of electricity, steam, heat, or cool- ing. These emissions occur at the facility where the electricity, steam, heat, or cooling is generated but are reported in the GHG in- ventory of the organization that uses the purchased energy. Scope 3 All indirect emissions (not included in Scope 2) that occur in the value chain of the report- ing company, including both upstream and downstream emissions. This includes emis- sions from purchased goods and services, business travel, waste disposal, and use of sold products. Sustainability Meeting the needs of the present without compromising the ability of future generations to meet their own needs (according to the Brundtland definition). This concept encompasses environmental, economic, and social dimensions, aiming for a balance that ensures long-term health and stability of both human societies and the natural environment. 21 MOTION SUSTAINABILITY PLAYBOOK — Key glossary 22 VISIT WEBSITE
23 MOTION SUSTAINABILITY PLAYBOOK — Dos and Don'ts Environmental claims and Greenwashing Dos Don’ts • • • • • • Environmental claims suggest that a product, service, brand, or business provides a benefit or is less harmful to the environment. Environmental claims are genuine when they properly describe the impact of a product, brand, business or service, with evi- dence to back it up. Misleading claims contain information that is untrue, misrepre- sented, or taken out of context. Misleading environmental claims are commonly referred to as “greenwashing”. A study by the European Commission in 2020 found that over 53% of environmental claims in the EU were vague, misleading or unfounded. KPMG’s survey revealed 54% consumers would boycott brands with misleading environmental claims. • • • • Find out more in the full Dos & Don’ts guideline “We always deliver safe, energy-efficient …” “ABB is a sustainable company.” “Our offices are eco-friendly and green.” Banned: The use of general environmental claims like “environmentally friendly”, “natural”, “biodegradable”, “climate neutral” or “eco” without proof. • “We aim to deliver safe, energy-efficient, fit-for-purpose products that complies with government regulations and standards” • “ABB is committed to achieving (XYZ official reference) green- house gases emission reduction targets” • “Our offices are moving towards reducing our environmental footprint, by transitioning to XYZ system / technology / material, saving X MWh per year” 24 VISIT WEBSITE
Q: Are our climate targets science-based? A: Yes! Our targets were approved by the Science Based Targets Initiative (SBTi) in late 2023. This means that our targets align with the latest climate science to meet the objec- tives of the Paris Agreement, aiming to limit global warming to 1.5°C above pre-industrial levels by reducing greenhouse gas emissions in a measurable and actionable way. Q: When can we talk about avoided emissions? A: Not all products lead to avoided emissions, nor all scenarios or projects (e.g., one cannot Q: What is the difference between Scope 3 and Avoided emissions? A: Scope 3 emissions are indirect emissions of a company that occur as a result of its activi- ties. Avoided emissions refer to emissions prevented from being released into the atmo- sphere due to the implementation of more sustainable practices or technologies. In other words, Scope 3 emissions focus on the emis- sions generated during the lifecycle of a product (including use and end-of-life), while avoided emissions highlight the emissions that are not produced due to sustainable actions. As a simplified example, if we substitute an electric motor with another more efficient one, we will have: • Scope 3 emissions – emissions associated with the entire life cycle of the new motor, from raw materials extraction to disposal; • Avoided emissions – emissions saved by us- ing the more efficient motor instead of the less efficient one. Q: How is our portfolio circularity scoring calculated? A: ABB takes a company-wide approach to circularity. By 2030, at least 80 percent of our products and solutions will be covered by our ABB Circularity Approach and evaluated against a clear set of key performance indica- tors (KPIs), corresponding to each stage of the product life cycle. The scoring principle is outlined in the ABB’s circularity approach | KPI guidelines – ABB Wiki. claim for avoided emissions in oil and gas re- lated activities). There is a specific guidance on how to talk about avoided emissions, as they display a high greenwashing potential if not handled properly. Product families eligible for avoided emissions are reported in each year ABB Sustainability Report and are based on an internal methodology document. On top, there is a specific section of the ABB Mo- tion Sustainability Do’s & Don’ts guideline that gives indications on how to use the term avoided emissions. Q: What are we doing to increase energy efficiency in our own operation? A: We took a page right from the Industrial Energy Efficiency Playbook and aligned our significant energy users (95% of our total energy consumption) with the 10 key energy efficiency actions for industrial leaders, includ- ing Level II energy audits, right-sizing our assets and processes, installing high efficiency motor solutions, utilize efficiency heat recov- ery systems and pumps, and utilize smart building and energy management systems. Q: How can Motion activities contribute to social progress? A: It’s not just about what we do, but how we do it. Conducting business in an ethical man- ner means operating with respect for our own workforce, the broader value chain, and the communities we impact. To achieve this, we must integrate the principles of social prog- ress and human rights into project execution, customer and partner relationships – starting from the very design of our products. For ex- ample, addressing conflict minerals, which carry significant human rights risks, and en- suring that we prioritize ‘fair’ circularity and a ‘just’ transition. Q: Is ABB rated by EcoVadis? A: Yes! ABB received a Gold medal from EcoVadis in August 2024, with a score of 75/100. ABB maintains one single account with EcoVadis, the certificate is applicable to all ABB operations globally. The EcoVadis ESG certifi- cate is very often requested by our customers during a project due diligence, bidding or sales process. It helps customers’ procurement teams monitor the sustainability practices in their own supply chain. Should any customer or third party ask for it, please find all the rele- vant information here. Q: Is ABB’s sustainability data audited by third party? A: Some aspects of the externally disclosed in- formation are subject to limited assurance or readiness review by the auditors. Limited as- surance provides moderate confidence, with auditors checking selected data and processes for major errors without guaranteeing full accuracy. In contrast, a readiness review is a preparatory assessment where auditors evalu- ate the company’s data processes, identifying improvements to help the company get ready for a future full audit. These evaluations sup- port stronger, more reliable ESG reporting at different stages. Q: Do we have slides available to present sustainability to customers? A: Yes! We have a dedicated Motion Sustain- ability Sales deck that is regularly updated, tackles all the different aspects of sustainabil- ity, and comes with speaker notes. You can find the deck in the M
Irina Cardos James Waldron Analia Troncoso Claudio Siminelli GlobalSustainabilitySpecialist Elena Pazzini Juhana Kainulainen Francesca Federigi VISIT WEBSITE VISIT WEBSITE VISIT WEBSITE VISIT WEBSITE VISIT WEBSITE VISIT WEBSITE VISIT WEBSITE E-MAIL ME CHAT E-MAIL ME E-MAIL ME Ask me about: Climate, Scope 1,2,3, Waste GlobalSustainabilityManager CHAT CHAT GlobalHeadof Strategy,BD, Sustainability and Marketing Ask me about: Motion Strategy, Sustainability strategy, business development, strategic marketing GlobalHeadof Comms, MOLM & Motion Sustainability Ask me about: Sustainability Positioning and Communications E-MAIL ME CHAT Ask me about: Sales Enablement, Avoided Emissions E-MAIL ME E-MAIL ME GlobalHeadofSustainability GlobalSustainability&Finance Analyst E-MAIL ME CHAT CHAT CHAT Ask me about: Sustainability Reporting, CSRD, EU Taxonomy Ask me about: Human Rights & Community Engagement Ask me about: Sustainability strategy, governance, positioning Global Sustainability Manager ABB Group ESG reporting Motion Sustainability Sales Deck Motion Sustainability Inside+ page ABB Annual Reporting Suite (2023) ABB Group EcoVadis page Motion Sales Enablement ABB Sustainability Agenda 27 MOTION SUSTAINABILITY PLAYBOOK — Useful links — Contact 28
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