Eliminating waste to landfill

ABB has committed to sending zero waste to landfill by 2030. Since this target is included in our long-term performance planning, every ABB division has waste reduction and recycling programs in place. In addition, our waste management requirements are aligned with international standards.

ABB is driving down waste across our global operations by:

• Improving the efficiency of our processes;

• Increasing the proportion of sustainable materials in products and packaging; and

• Expanding on-site recycling rates.

In 2025, we launched our “Zero Waste to Landfill Playbook” to provide our sites with tangible resources on how they can minimize waste generation and reduce disposal to landfills. The publication helps sites calculate waste diversion rates, improve recycling efficiency, make process improvements, reduce consumables, and use vendors to increase waste diversion.

ABB recycled 81 percent of waste from operations during 2025, with only 5.3 percent (5.8 percent in 2024) of waste sent to landfill and 4.1 percent to energy. The amount of waste generated by ABB operations increased by 15.1 percent to 217.8 kilotons compared to the previous year. The increase was mainly driven by construction projects.

Managing water risk

ABB recognizes the critical nature of water security to our own operations and to the health of our communities and ecosystems. As climate change, population growth, and industrial demand put further pressure on water security, we recognize fresh water as a finite and shared resource and endeavor to use water responsibly throughout our value chain.

We conduct annual assessments of water-related risk across more than 320 global sites, focusing on those in water-stressed regions. We use the global water risk tool of the World Resources Institute (WRI) to conduct these assessments.

As of 2025, 109 ABB sites were located in areas of high and extremely high water stress (compared to 91 in 2024). We require 100% of these sites to perform a self-assessment and action planning by the end of 2026. We encourage our sites to align their action planning with the requirements of the Alliance for Water Stewardship (AWS). This globally recognized framework for sustainable water management addresses responsible water use, water quality, and governance at a watershed level through multi-stakeholder engagement. The first ABB site to gain AWS Standard certification (Gold) from the Alliance for Water Stewardship is our Bangalore site in India. We are planning to roll out the program to ABB sites around the world.

In our supply chain, exposure to water risk is even greater. We therefore work with key suppliers to assess and mitigate water-related risks, from flooding to water scarcity. In addition, we ask suppliers to demonstrate how they monitor water usage, improve water efficiency, and partner with local institutions.

Our water and wastewater solutions help customers reduce water extraction and address freshwater pollution. ABB’s Water Care program also helps optimize plant performance, protect equipment and extend the operating life of these assets (both automated and electrical).

Tackling pollution and substances of concern

ABB has systems in place to control and phase out the use of hazardous substances in ABB products and processes. Our List of Prohibited and Restricted Substances addresses every part of our business – from procurement, product development, and production to products and packaging materials, as well as service activities and construction sites.

To adhere to all local and global regulations for material compliance, we review and update the list twice a year. Our divisions are accountable for local compliance obligations and the information collected from suppliers is used for regulatory submissions and customer communications.

We require suppliers to support ABB’s efforts to maintain compliance with such regulations as REACH (Registration, Evaluation, Authorisation and Restriction of Chemicals) and RoHS (Restriction of Hazardous Substances). Working together also helps to prevent restricted substances from entering ABB’s supply chain; if a supplier cannot complete the required compliance declaration, we cannot use their products. To help our suppliers, we have developed a companion guide to the ABB List of Prohibited and Restricted Substances. We are also working collaboratively to find alternatives for substances that may be restricted in the future.

Our businesses continuously collect and assess material compliance information from our suppliers. In 2025, this included gathering information on the usage of per- and polyfluoroalkyl substances (PFAS) for reporting to authorities and customers.

Protecting biodiversity

There is growing global recognition that biodiversity loss and ecosystem degradation are systemic risks – and that these issues are interconnected with climate change. One challenge cannot be effectively addressed without the other.

ABB recognizes that the health of natural ecosystems underpins the stability of our business, as well as the customers, suppliers, and communities we serve. As we enhance our understanding and management of these issues, we aim to protect nature and biodiversity at and around ABB sites.

In 2025, we introduced a new Environmental Procedure requiring ABB sites located within one kilometer of a biodiversity-sensitive or protected area to include the proximity to the protected area in their evaluation of significant environmental aspects in the site’s environmental management system (EMS). Sites must take adequate precautionary measures by December 31, 2026.

Accountability for assessing and mitigating biodiversity risks lies with ABB’s Waste, Water & Biodiversity Working Group. In 2025, we worked with external partners to apply a structured approach to assessing and managing ABB’s nature-related dependencies and impacts.

This approach is in line with the Taskforce on Nature-related Financial Disclosures (TNFD). Of our 429 global sites in scope, 66 are confirmed to be in or near areas that are sensitive or protected from a biodiversity perspective.

We also collaborate increasingly with suppliers and customers on biodiversity protection. For example, to comply with the expected obligations of the EU Deforestation Regulation (EUDR), we have begun working with our suppliers to ensure our products are free from deforestation and habitat loss. The EUDR places new responsibilities on suppliers to demonstrate compliance through traceability and due diligence.