Environmental performance
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Overview This section on our environmental performance relates to all employees working in premises owned or leased by ABB, including manufacturing and non-manufacturing sites. It does not cover our customers’ sites or suppliers. For non-manufacturing sites, which by nature have only limited environmental impact, we have made assumptions of the levels of their main environmental indicators, such as the use of electricity, district heating and water consumption per person. These assumptions are based on data from comparable premises and relate to about 22 percent of employees, unchanged from last year. When we have made an assumption, it is stated in the text. The remaining 78 percent of employees are covered by data collected year-on-year from approximately 380 sites, mainly manufacturing and service organizations. Under the indicators in the GRI Guidelines, we have chosen to report data which is relevant to the environmental impact caused by ABB’s activities, products and services. In recent years we have steadily expanded our data collection system to cover most of the GRI indicators. However, rather than report the amount of materials used (EN1), we believe it is more useful and challenging to report on our use of hazardous substances as defined by official international lists of restricted substances, and to show the progress we are making in eliminating them. To report precise figures for all other (non-hazardous) materials would be very difficult for a company like ABB, which manufactures such a wide range of products in many different sites, and sources millions of different materials and components globally and locally. Apart from EN1, we have reported against all the GRI core environmental indicators and many of the additional indicators. We have also discontinued the reporting of data – either where the quantities have become negligible, or where ABB’s activities have almost no impact (for example on water sources), or where data can only be based on estimates (for example, types and impacts of transportation, disposal methods of regular waste). For information covering ABB’s asbestos liabilities, please refer to the Operational review and the Financial review of ABB’s Annual Report. Materials EN1 Total materials consumption The main materials used in ABB’s products by weight are steel, sheet metal, copper, aluminum, mineral oil and various plastics. ABB’s diverse range of standard products and the fact that many products are made to customer specifications means that aggregate reporting of materials consumption is not meaningful. ABB’s corporate objective is to minimize the use of materials and substances. Use of hazardous material ABB follows or, in some countries, exceeds the standard definitions of hazardous substances set by international agreements. A corporate program is ongoing in ABB with the objective of reducing the use of hazardous substances, setting end-of-use deadlines. In 2004 and 2005 the program focused on reducing the use of VOC-Cl and replacing existing PCB-filled equipment. The outcome was positive (see diagram below) and plans have been made to replace all transformers and capacitors containing PCB before the end of 2007, three years before legal bans come into force. The emission of chlorinated solvents during 2004 and 2005 has also been significantly reduced.  Product development plays an important role in phasing out hazardous materials and tools have been established to ensure that the environmental performance of ABB’s products is considered at the development stage. In the Gate model we have introduced new checklists to prevent the use of any hazardous materials. We have also started an education program for product developers at ABB’s technology centers, which adresses this issue. Priorities for replacement depend on the environmental safety and technical acceptability of alternatives. Progress is reported by local sustainability officers, who describe in greater detail the results of local improvement projects. In the following tables, we list some monitored hazardous substances used by ABB to make products, or by suppliers working to ABB’s specifications.
** Decrease due to replacement of flame retardants at one manufacturing site *** Increase due to higher business volume
** Increase due to inclusion of previously unidentified equipment EN2 Percentage of waste materials used from external sources In the previous table, the lead used as counterweights for robots and the cadmium used in industrial batteries are recycled materials. Energy
* These figures are based on reported data from 78 percent of employees and an assumed energy use of 3 MWh/employee for district heat and 12 MW/h employee for electricity for the remaining 22 percent of employees. Due to a heterogeneous product mix and the fact that most of our products are made to customer specifications, we do not report energy consumption per unit of production. Instead, we monitor the use of energy per employee.
(District heat and electricity are the main categories of indirect energy used by ABB.) *These figures are based on reported data from 78 percent of employees and an assumed energy use of 3 MWh/employee for district heat and 12 MW/h employee for electricity for the remaining 22 percent of employees. Indirect energy use is defined in this table as the energy losses incurred by the utilities supplying ABB’s energy. For example, to supply ABB with 256 GWh of useable district heating, the utilities consume 294 GWh of energy, incurring losses of 38 GWh. This provides a measure of the utilities’ efficiency in providing ABB with useable energy – 13 percent lost for district heating, and 58 percent lost for the supply of useful electricity. EN17 Initiatives to use renewable energy Most ABB facilities are bound to the energy mix supplied by local utilities. In countries where utilities offer “green energy,” ABB’s objective is to increase the amount of renewable energy it buys. EN18 Energy consumption footprint of major products For an energy-driven ABB product, most environmental impacts are caused during its operating life rather than during its manufacture. It is therefore important for ABB to focus on energy efficiency to reduce the energy consumption footprint of its products. This footprint is identified through a life cycle assessment study, which ABB carries out on all major products. The results are given in environmental product declarations (EPDs), published on ABB’s Web site www.abb.com/sustainability. They are presented in the EPD as contributions that the product makes to known environmental impacts, such as global warming, ozone depletion, etc. See under indicator E14 for more information on EPDs. EN19 Other indirect energy use a) Organizational travel There have been no significant changes in travel patterns since last year. We estimate that during the last three years over half of all business traveling journeys by ABB employees were by road, over one-third by air and the remainder by rail. ABB is not in a position to obtain figures for the distances covered by business travel and therefore cannot provide figures for indirect energy use for organizational travel. In 2005, ABB Service in Sweden, introduced an initiative offering all employees an EcoDriving training program in fuel efficiency and in the safe driving of company cars. b) Use of energy-intensive materials For the reasons already given, ABB does not account for the total amount of materials used. The most energy-intensive materials we use are: aluminum (284 megajoules per kilogram - MJ/kg), copper (128 MJ/kg) and steel (28 MJ/kg). c) Product life cycle management All major ABB products come with recycling instructions to facilitate their efficient disposal at the end of their useful life. As an example, up to 90 percent by weight of ABB drives can be reused or recycled. Water
* The figures are based on reported data from 78 percent of employees and an assumed water consumption of ten tons/year/employee for the remaining 22 percent of employees ** Estimated (rounded) figures *** Increase due to use of surface water at one site during repair of a water filter EN20 Water sources significantly affected by use of water ABB’s manufacturing processes do not use significant amounts of water. Extracted ground and surface water is mainly used for cooling purposes. Almost all of the cooling water is discharged without any added contamination. EN21 Annual withdrawals of ground and surface water See EN5 and EN20. EN22 Recycling and reuse of water The amount of water in closed loop processes is approximately 60,000 tons. The water is mainly used in cooling systems, surface treatment processes and the production of electrical insulation paper. Biodiversity EN6 Land owned, leased or managed in biodiversity-rich habitats ABB’s manufacturing units are not located in biodiversity-rich habitats, as defined in IUCN Protected Areas Categories 1 - 4, world heritage sites or biosphere reserves.
** Accurate figures now replace previously reported approximate figures Emissions
* The figures are based on reported data from 78 percent of employees and an assumed energy use of 3 MWh/employee for district heat and 12 MWh/employee for electricity for the remaining 22 percent of employees ** Estimated figures Carbon dioxide (CO2) emissions calculations are based on in-house energy use for production, lighting, heating and air-conditioning, and include indirect emissions at utilities where ABB buys power. Sulfur hexafluoride (SF6) emissions are estimated to be equivalent to 3 percent of all SF6 gas used by ABB. As from 2005, ABB started using a CO2 equivalent for SF6 of 22,200, as specified by the Intergovernmental Panel on Climate Change. As can be seen from the table above, the total amount of ABB’s greenhouse gas emissions, based on the WBCSD/WRI Greenhouse Gas Protocol (Scope l and ll), is estimated to be 1.5 million tons for the whole ABB Group.
* Increase due to improved inventory of equipment All CFCs are handled according to procedures in each manufacturing site’s environmental management program.
* The use of chlorinated VOC in non-closed loops has almost been eliminated ABB’s objective for chlorinated volatile organic compounds (VOC-Cl) is to eliminate all emissions to air. The current reporting system does not distinguish between the various types of VOC and VOC-Cl. It is therefore not meaningful to convert the data into ethane equivalents. The major constituents of VOCs and VOC-Cls are xylene, thinner and perchloroethylene.
These figures are for fossil fuels consumed in ABB premises for heating and process purposes. EN30 Other indirect greenhouse gas emissions Indirect emissions from traveling, transportation, manufacturing of materials and emissions related to product use, are not aggregated at group level. For core products however, the greenhouse gas emissions throughout a product’s life cycle are shown in its environmental product declaration (published on www.abb.com/sustainability). See under indicator EN14 for more information on EPDs. EN11 Waste (tons) The main waste streams at ABB organizations are wood, paper, oil and plastic. We estimate that around three-quarters of waste is sent for recycling. The remaining quarter is sent for incineration or to landfill. ABB’s aim is to reduce the amount of waste sent to landfill and to increase its use of materials which are recycled or made available for reuse. However, in some countries proper waste recycling programs are unavailable.
* Increase due to larger production volume, wider scope of regulatory waste classifications and more accurate inventories EN31 Transport of hazardous waste ABB follows legal regulations to transport and dispose of hazardous waste only through officially authorized disposal agents.
The figures, which remain unchanged from previous years, indicate the percentage of ABB process plants that discharge water to public sewers or to local water sources such as lakes or rivers. The water discharge to local water sources is returned without additional contamination and comes mainly from surface treatment plants, cooling water systems and test plants. EN32 Water sources and related ecosystems significantly affected by discharges of water ABB sites do not significantly affect water sources and related ecosystems or ground water. EN13 Spills and other incidents 8 oil spills 6 spills of chemicals 3 emissions to air 1 dump of waste ABB’s environmental management program includes mechanisms for reporting incidents with potential environmental impact. During 2005, 18 such incidents were reported. Adequate decontamination procedures were implemented to prevent any permanent contamination of soil and water due to these oil and chemical spills, and corrective actions, such as improved control systems, have been taken to ensure such incidents do not recur. Transportation EN34 Environmental impacts of transportation We estimate that over the last three years, more than three-quarters of the deliveries of materials from ABB suppliers and the deliveries of ABB finished products to customers, have been by road. The remainder have been shared between rail, sea and air. As part of its collaboration with Chalmers University of Technology, Sweden, ABB is currently participating in the Chalmers/CPM project "Sustainable Transport" to develop common strategies to achieve sustainable transport systems. See EN33 below for more information on ABB’s collaboration with its international freight-forwarders. Suppliers EN33 Performance of suppliers ABB segregates its major and strategic suppliers of materials, components and services into categories according to the severity of the environmental and social impacts they may cause. Suppliers who provide materials and services used in ABB products, and those handling hazardous materials, are required to undertake the following:
ABB is working with its international freight-forwarders for sea and air and has jointly implemented effective and practicable guidelines covering environmental and social performance objectives and requirements, contractually binding on all parties. ABB's sustainability performance expectations have been communicated to the freight-forwarders, who are now undergoing an audit program, which will assess their environmental and social performance. The audit focuses on the implementation of management systems, occupational health and safety performance and the reporting of environmental performance indicators. During the course of this work, logistics pilot projects will be identified to be used in the “Sustainable Transport” project described above in EN34, and to determine how results can best be put into practice. Products and services EN14 Significant environmental impacts of principal products and services The environmental performance and impacts of ABB core products are presented in environmental product declarations (EPDs). An EPD is a standardized tool, meeting the requirements of ISO/TR 14025, to communicate the environmental performance of a product or system over its complete life cycle, and is a recognized worldwide reference for all interested parties. It is based on a formal life cycle assessment (LCA), providing information on environmental impacts such as raw material acquisition, energy use and efficiency, content of materials and substances, emissions and waste generation. It also includes product and recycling information. EPDs for ABB products are published on the ABB Web site: www.abb.com/sustainability EN15 Percentage of ABB products reclaimable after use ABB products contain mostly steel, copper, aluminum, oil and plastics. Approximately 90 percent of the material is reclaimable after the end of a product’s useful life. ABB aims to encourage recycling by designing products that can be dismantled more easily, and by providing users with recycling instructions. Compliance EN16 Fines for non-compliance with applicable legislations Two penalties for environmental infringements by ABB companies were reported during 2005. One related to an incorrect environmental declaration of sand blasting equipment and the other to excessive emissions. Both were considered minor infringements by the authorities. |
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