Our Sustainability Agenda is underpinned by a culture of integrity and transparency that we aim to embed across the value chain. At ABB, it’s not just about what we do - but how we do it - to provide value to businesses, communities, our customers and stakeholders around the world. We see integrity as part of our license to operate and we are committed to the highest standards of ethical business conduct and professional behavior.
Integrity
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Integrity
At ABB, we aim to embed integrity in everything we do. Our commitment to integrity is reflected in our ABB Code of Conduct and Supplier Code of Conduct, and is strengthened by our internal controls, standards and policies. We also have core Integrity & Regulatory Affairs procedures covering I&RA oversight and responsibilities, third-party management, data privacy, conflicts of interest and global trade.
Our global integrity program includes a strong training and communications component that combines e-learning and face-to-face training, and encourages personal accountability and responsibility.
To track the effectiveness of our integrity-related initiatives, we utilize data analytics and conduct transaction monitoring.
Responsible sourcing
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Responsible Sourcing
At ABB, we expect our suppliers to adhere to the same high social, environmental and human rights standards as we do. All our suppliers are required to follow ABB’s Supplier Code of Conduct or apply a similar set of sustainability policies and procedures.
We help our suppliers improve their sustainability performance through our Sustainable Supply Base Management (SSBM) program. We aim to have our SSBM cover at least 80% of our spending on high-risk suppliers in focus countries by 2025 and 80% of all spending by 2030. At the end of 2025, we reached our SSBM target to cover 80% of spending on high-risk suppliers in focus countries.1
We are working towards ensuring that our products do not contain Conflict Minerals. In partnership with our suppliers, we are committed to using in our products only tin, tungsten, tantalum and gold which has been legally and ethically sourced. In 2023, we extended our focus to cobalt and in 2025, we have included Mica. Over time, we will include other minerals that pose social and environmental risks.
In 2024, we had our scope 3 emission reduction target approved by the SBTi. By 2030, we will need to reduce emissions by 25% percent compared to 2022. We are working actively with suppliers to reduce their own emissions, but also the emissions in their supply chains.
1 This is the list of 2025 focus countries: Brazil, Bulgaria, China, Egypt, India, Malaysia, Mexico, Saudi Arabia, South Africa, Thailand, Tunisia and Türkiye.
Management incentives for sustainability performance
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Executives' sustainability incentives
ABB promotes alignment between its management’s interests and its Sustainability Agenda by incorporating sustainability performance targets into its key variable pay plans, i.e., Annual Incentive Plan (AIP) and Long-Term Incentive Plan (LTIP). This alignment ensures that management incentives are tied not only to financial results but also to responsible conduct and progress on sustainability commitments.
Annual Incentive Plan
In 2025, sustainability performance targets were under the AIP of approx. 100 executives, including Executive Committee (EC) members and Division Presidents. Such sustainability performance had a weighting of 10% of the executive’s target AIP award. In 2026, we extended this structure to senior and middle managers, i.e., now approx. 600 managers have sustainability performance targets under their AIP, with a weighting of 10% of their target AIP award.
Long-Term Incentive Plan
From 2022 to 2025, the LTIP has been granted annually to approx. 100 executives, including EC members and Division Presidents, in the form of a Performance Share Plan. Vesting was and is subject to the achievement of plan-specific performance targets over a period of three years. To strengthen our commitment to reduce greenhouse gas emissions by 80% until 2030 (vs. 2019 base year), one of the three LTIP performance measures, with a weighting of 20% of the executive’s target LTIP award, represented the group-wide greenhouse gas emissions reduction target. Thanks to our strong progress on emissions reduction over the past four years, we expect to reach our commitment well ahead of the 2030 timeline. Therefore, the 2026 LTIP has no sustainability performance target anymore. The active LTIPs (2023, 2024 and 2025), which include the emissions reduction target, remain unchanged and will continue to run until their last vesting, in 2028.
You can find more information in our Compensation Report 2025, in the section “Sustainability-related considerations in ABB’s compensation".
ABB Sustainability Statement 2025
Read more on the progress we have made toward embedding a culture of integrity and transparency along our entire value chain.
More on Our Sustainabilty Agenda
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Enabling a low-carbon society
Preserving resources
Promoting social progress