ABB and Corporate Social Responsibility Dr. Gülden Türktan

Agenda ABB & Sustainability CSR – Corporate Social Responsibility ABB’s Social Policy Why? We need all these

Agenda ABB & Sustainability CSR – Corporate Social Responsibility ABB’s Social Policy Why? We need all these

The ABB Group ABB is a global technology group serving world markets with 150,000 employees in more than 100 countries. Three customer divisions serving our end users: Utilities Industries Oil, Gas and Petrochemicals Backed up with two product divisions: Automation Technology Products Power Technology Products These divisions also serve external channel partners.

ABB and Sustainability Sustainability plays a strategic role in all of ABB’s activities. What drives our commitment to sustainability is our belief in “ what is good for sustainability” will also “ be good for our business”.  Higher operational efficiencies,  advanced technology offerings,  strong relationships to a broad stakeholder base, are the hallmarks of environmentally responsible companies as well as profitable and competitive businesses. İnsanlık kalkınmayı sürdürülebilir hale getirebilir.

Win-win growth opportunities for creative thinkers Sustainability Economical Social Sustainable Zone Win-win growth opportunities for creative thinkers Economic - value creation Ecology - responsible use of resources Social - social responsibility Role of business is changing, we go from reluctant followers to proactive leaders What ABB can do: Technology sharing - high-efficiency, low emissions Fuel local economic development Cleaning our own backyard Working with other stakeholders Examples: Global CO2 reduction project China CO2 research project Special role/responsibility for global companies Environmental 5

How ABB supports sustainability Sharing technology 45,000 employees in developing countries Majority stake in all operations Ecoefficient products Innovative R&D programs Life Cycle Assessment LCA Environmental declarations for core products Economic performance ABB’s social performance Social policy Stakeholder dialogue Sustain- ability Environmental performance Social performance ABB’s environmental performance ISO 14001 in place (in almost all sites) Continuous improvement Contribution to common efforts Access to electricity WEC 1 Gton pilot program AGS - China Energy program

Agenda ABB & Sustainability CSR – Corporate Social Responsibility ABB’s Social Policy Why? We need all these

Corporate Social Responsibility (CSR) A good definition (WBCSD): “Corporate Social Responsibility is the commitment of business to sustainable economic development, working with employees, their families, the local community and society at large to improve their quality of life.”

The Corporate Social Responsibility involves: Improved risk management Human resource development Abiding with rules and regulations Contributing to increased shareholders’ value

Agenda ABB & Sustainability CSR – Corporate Social Responsibility ABB’s Social Policy Why? We need all these

ABB’s Social Policy To have positive contribution economically and environmentally is not complete without social performance. ABB’s Social Policy, covers applicable to areas which ABB can directly influence. We are ready to hear in stakeholder review and consultation on the policy, in order to continually improve it.

ABB’s Social Policy - 13 principles 1. ABB in society 2. Human rights 3. Children and young workers 4. Freedom of engagement 5. Health and safety 6. Employee consultation and communication 7. Equality of opportunity 8. Mobbing and disciplinary practices 9. Working hours 10. Compensation 11. Suppliers 12. Community involvement 13. Business ethics

Social Policy Principle Ownership Human Resources Children and Young Workers Freedom of Engagement Employee Consultation and Communication Equality of Opportunity Mobbing and Disciplinary practices Working hours Compensation Sustainability Affairs Health and Safety Communications ABB in Society Human Rights Community Involvement ABB’s Social Policy Legal Business Ethics Supply Chain Management Suppliers

The UN Global Compact ABB was one of the companies participating in the launch of the United Nations Global Compact in July 2000. It is an UN-sponsored platform for encouraging and promoting good corporate practices and learning experiences in the areas of human rights, labor and the environment. The Global Compact is supported by business associations, workers’ organizations, non-governmental organizations and individual companies. Its nine principles are derived from - the Universal Declaration of Human Rights, - the ILO International Labor Organization’s principles on the right to work, - the Rio Principles on the environment (Agenda 21). ABB is ready to work on seeking ways for broader application of the Global Compact.

Agenda ABB & Sustainability CSR – Corporate Social Responsibility ABB’s Social Policy Why? We need all these

Major Stakeholders Competitors The Board of Directors Customers International Organizations Media Employees Public Suppliers NGOs Governments

  Minimize Waste Company Financial Statements -------------------- Transparent Accurate Reliable Complete Fair Accountable Transparent Accurate Reliable Correct Fair Accountable -------------- Decisions Banks Investors Tax Authority Suppliers Customers 

  Better Future -------------------- Profitability Successful & Trustworthy ------------- Investor Employee Society Environment Future Company -------------------- Responsibility towards Investors Responsibility towards Employees Responsibility towards Society Responsibility towards Environment Responsibility towards Future Profitability Professional Career  Respectful Clean Sustainability