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Organizational profile
2.1 Name of reporting organization
Total capitalization: On December 31, 2005, the total capitalization (short-term borrowings and current maturities of long-term borrowings plus long-term borrowings and total stockholders' equity including minority interest) was $7.9 billion ($8.5 billion end 2004). Debt: (short-term borrowings and current maturities of long-term borrowings and long-term borrowings) was $4.1 billion ($5.4 billion end 2004). Equity: (total stockholders' equity including minority interest) was $3.8 billion ($3.1 billion end 2004). Total assets: total assets were $22.3 billion ($24.7 billion end 2004). 2.9 Main stakeholders Customers, employees, shareholders, creditors, suppliers, media and investment communities, business partners, and society at large (local communities where we have operations, NGOs, academia, central and local government, trade unions, media and banks). Report scope 2.10 Contact for the report e-mail: sustainability.abbzh@ch.abb.com Web address: www.abb.com/sustainability 2.11 Reporting period Fiscal year 2005. 2.12 Date of previous report April 2005, covering fiscal year 2004. 2.13 Boundaries of report Unless otherwise stated, the Sustainability review covers ABB Group employees in owned or leased premises in countries and regions where ABB has appointed country/regional sustainability controllers, who are responsible for driving ABB's sustainability management program worldwide and gathering the data consolidated in this report. All ABB employees, except those in units being divested, are covered by this report. For environmental performance, a total of 78 percent of employees are covered by confirmed data gathered through ABB's formal environmental reporting system, while 22 percent in low-impact non-manufacturing organizations are covered by estimated data. For social performance, a total of 93 percent of employees are covered by confirmed data gathered through ABB's formal social reporting system. The report does not cover our customers' sites or suppliers. 2.14 Significant changes in size, structure and ownership There were no significant changes in size and structure during the fiscal year 2005. However, effective from January 1, 2006, the previously existing two core divisions Power Technologies and Automation Technologies were disbanded and five new divisions were created in their place: Power Products, Power Systems, Automation Products, Process Automation and Robotics. The managers of these divisions were appointed members of ABB's Executive Committee, which manages the day-to-day operations of the ABB Group. There were no significant ownership changes in 2005. FMR Corporation, Boston, Massachusetts, U.S., announced that as per April 7, 2005 it held for its funds and clients 103,744,180 ABB shares representing 5.0 percent of total share capital. It subsequently reported that as per August 12, 2005 it had reduced its holdings in ABB shares to a total below the 5 percent threshold. 2.16 Effect of restatement of information The number of ABB employees was around 104,000 in 2005, compared to around 102,500 in 2004, and the number of manufacturing sites and workshops covered by the sustainability management program was approximately 380 in 2005, compared to 390 in 2004. Sustainability review profile 2.19 Significant changes in sustainability information measurement methods Sustainability information measurement methods remain much the same as in the previous year. However, in 2005 we increased the scope of reporting to cover all GRI core indicators, including EN7 (Major impacts on biodiversity), LA2 (Employment and turnover) and PR3 (Consumer privacy). On the other hand, we ceased reporting against some GRI additional indicators that are not affected by our activities, such as EN20, EN21, EN32 (Water sources) and have focused more strongly on other issues of importance to ABB. The quarterly reporting process for occupational health and safety incidents and ill-health, which we introduced in 2004, has now enabled both input and output data to be better monitored. ABB uses three computerized data reporting questionnaires to measure and collect performance data throughout the group via the ABB intranet - a social report from every country, an environmental report from every site, and a health and safety report from every country. 2.20 Policies and practices to enhance accuracy, completeness and reliability of the report The three sets of computerized data collected from each country and ABB site, as described in indicator 2.19, are consolidated and checked at country level and again at group level. Country sustainability controllers audit the data from each site. The help texts to define the data required, which are provided in the reporting questionnaires, have been further expanded and edited to ensure accuracy and consistency. 2.21 Independent assurance for the full report ABB's triple bottom line performance, as covered in this Sustainability review, has been verified by independent external organizations. The data reported in the economic performance section comprises extracts from ABB's Annual Report 2005. The environmental and social sections have been verified by the independent verification body, Det Norske Veritas. Independent verficiation statement. 2.22 Additional information on sustainability matters Information on ABB's sustainability performance is also described in the Operational review of the ABB Group Annual Report 2005, and is published on the ABB Group Web site under: www.abb.com/sustainability |
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