Addressing value chain emissions

In 2025, although our scope 3 GHG emissions increased compared to 2024, they are 1.1 percent lower compared to the baseline year of 2022, with key drivers being strong growth of orders and unit shipments in parts of the business, as well as a shift in sales mix within our product portfolio. We follow the current GHG Protocol guidance under which 97 percent of our scope 3 emissions are downstream in the Use of Sold Products category. The guidance indicates that in many cases for ABB the full energy input to our products and not just the energy loss must be accounted for. Reducing emissions that occur downstream with customers during the use of ABB products requires decarbonization of the energy used throughout their lifetimes. The increase in scope 3 emissions is a result of energy-intensive products used by customers powered by electricity which globally still often relies on significant use of fossil fuels. Advanced energy efficiency, electrification and grid decarbonization are key drivers of the global energy transition. The sale of ABB products which support the integration of renewables into the grid for example, will in turn lead to reductions of our own scope 3 emissions in the long term. Our focus is on two key categories that account for 99 percent of value chain emissions.

1. Supplier emissions

   Purchased goods and services (scope 3, category 1) are the largest source of upstream emissions, with more than half of these emissions coming from our top 10 material groups.

    

   To address this, ABB is working to increase the proportion of low-carbon materials sourced, including steel, copper, aluminum, and plastics. While cost, availability, and price volatility present challenges, we are improving supplier data collection to better track material-related impacts.

    

   Key actions include:

   • Collaborating with suppliers and customers on low-carbon material availability and use;
   • Increasing availability of product carbon footprints (PCFs) from suppliers;
   • Engaging suppliers on carbon reduction roadmaps through 2030.

2. Customer emissions

   More than 97 percent of ABB’s value chain emissions result from customer use of our products (scope 3, category 11). Decarbonizing customer operations is therefore the most effective way we can contribute both to the energy transition and a low-carbon society.

    

   Our products and services support customers across numerous high-emitting sectors, including power, industry, buildings, and transport. We help these customers reduce emissions in three main ways:

   • Supporting the decarbonization of electricity grids with innovative technologies;
   • Improving energy efficiency in industry by working with customers to implement the most efficient products available;
   • Developing new products to boost energy efficiency and help reduce carbon emissions.

    

   ABB products support the energy transition by integrating renewables, electrifying operations, and increasing grid efficiency. We also address emerging needs, such as the growing energy demand of data centers, by delivering efficient power solutions.

3. Avoided emissions

   Our ambition is to enable customers to avoid 600 megatons of CO₂e emissions through the lifetime of products sold between 2022 and 2030. Avoided emissions are calculated over the full product lifecycle following strict guidance provided by the World Business Council of Sustainable Development (WBCSD).

    

   For ABB products and services sold since 2022, we have enabled customers to avoid 285 megatons of CO₂e emissions over the full product lifecycle. As customer use of ABB technologies grows, this can, in turn, increase our reported scope 3 emissions due to their electricity use not being fully decarbonized. Innovations, such as high-efficiency electric motors and drives, deliver substantial net emissions reductions compared to conventional alternatives.