ABB India : Business Responsibility & Sustainability Report (BRSR)

28	ABB INDIA LIMITED ANNUAL REPORT 2021

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Business Responsibility and Sustainability Reporting 2021 - Full Report

Sustainability in practice

Sustainability is beyond managing environmental risks and is about building resilience into the organization that is attained through Environmental, Social and Governance (ESG) agenda within and with external stakeholders. The Company is focused on executing a strong ESG proposition by working with all relevant stakeholders as well as in its own operations.

Even during the pandemic, the Company continued to strive towards addressing its sustainability goals internally, simultaneously assisting communities to navigate the pandemic. It also re-emphasized its efforts to integrate sustainability into its business strategy. It is actively enabling a low-carbon society as well as working with its customers and suppliers to implement sustainable practices in line with the Company's 2030 Sustainability strategy. The Company is equally committed to driving social progress in communities.

During the Covid-19 pandemic, in the last 2 years, the Company experienced intense collaboration among its teams, and it focused on safety, health and well-being of its employees including various communities. Extensive efforts were put in to make workplaces safe for employees, and contractors. The Company contributed towards relief efforts swiftly partnering with Government and charitable run hospitals in the country providing essential medical supplies and devices for Covid-19 patient management. It also focused its efforts in providing equitable access to Covid-19 vaccination to its employees alongside Governmental efforts. Within the company, vaccination drives were also organized to aid employees and their immediate families to voluntarily get vaccinated for the Covid-19 virus.

The Company's sustainability focus is part of its commitment to responsible business practices, which are at the center of its comprehensive governance framework,

based on integrity and transparency. The framework is underpinned by the Company's five integrity principles in the ABB Code of Conduct, which guides employees and suppliers to always do the right thing.

A key part of the Company's 2030 sustainability strategy is to support its customers and suppliers to reduce emissions and achieve carbon neutrality in its own operations. ABB's greenhouse gas emissions reduction targets have been validated by the Science Based Targets initiative as being in line with the 1.5°C scenario of the Paris Agreement. The Company in line with the target requirements has set internal performance indicators and metrices to achieve the said targets across businesses and locations of its operations.

To enable the Company to remain focused on achieving its goals, its sustainability targets are integrated into its decision-making processes with well laid down accountabilities. Several policies and standards are in place to underpin its sustainability core values, covering business ethics and governance, the Code of Conduct, and policies such as the Group Social and Human Rights the Supplier Code of Conduct, the Company's Health, Safety Environment, Security, and Sustainability Policy (HSE) and Corporate Social Responsibility (CSR) policies respectively. The various policies are further reinforced by various ABB Group directives, instructions and management systems which are mandated within the Company's operations, manufacturing locations, project sites and on vendors.

The Company also continued to contribute to a sustainable world by its varied, unique business offering of pioneering technologies, products and services. Through its offerings aided the sustainable development goals across critical domains such as smart cities, sustainable mobility solutions, automation, energy efficiency in essential manufacturing and utility sectors.

1. https://new.abb.com/sustainability/social-policy
2. https://new.abb.com/sustainability/human-rights-policy-and-statement
3. https://new.abb.com/docs/librariesprovider19/default-document-library/hse-policy-poster_24-x-32-in_v5.pdf?sfvrsn=2
4. https://new.abb.com/indian-subcontinent/investors/corporate-governance/india-corporate-social-responsibility

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Sustainability goals and targets

The ABB Group launched its renewed sustainability strategy 2030 last year, focused on balancing the needs of society, the environment and the economy to create success for all its stakeholders. Main sustainability targets have been set and the Company strives to achieve all targets by 2030. Its goal and targets are mainly under three main groupings:

1. To enable a low carbon economy
2. • Carbon neutrality in own operations
   • Support customers in reducing annual CO2 emissions by >100 Mt
   • Supply chain emission reduction
3. To preserve resources
4. • 80% of ABB products and solutions covered by circularity approach
   • Zero waste to landfill
   • Supplier sustainability framework
5. To promote social progress
6. • Zero harm to the Company's people and contractors
   • Comprehensive D&I framework; 25% women among ABB leaders
   • Top-tieremployee engagement score in the industry
   • Impactful support for community - building initiatives

The ABB Way operating model developed by the ABB Group aims to conduct the tasks and the inter-related processes of the Company's business in the same way to achieve the objectives and create a culture of continual improvement. As part of this management system's Governance framework for Health, Safety, Environment, Security, Energy efficiency and Sustainability. A new operating model was introduced which is based on ISO 45001 and ISO 14001 standards and has been implemented at all of the Company's locations (plant, customer sites, project sites and offices). Progress against the set targets is constantly monitored through internal systems and process along with online reporting channels. Performance is being reported externally in the annual ABB Group Sustainability Report which is consolidated as per GRI guidelines. In India, the Company has been publishing its Business Responsibility Report (BRR) as per SEBI's requirement for disclosure on key sustainability indicators and has voluntarily adopted the new BRSR format as best practice ahead of time for its non-financial performance disclosure from the current year onwards.

Country Sustainability Task Force at location and division levels have been established at the Company to uphold good sustainability governance and assure compliance with local legislations, ABB Group standards and customer expectations. The Company Board also discusses, reviews and monitors key sustainability performance indicators and monitor progress against set action plans to achieve the same, every quarter.

Business achievements and sustainability

In alignment with the Sustainable Development Goals- with its pioneering technologies, the Company is helping to address the economic, social, environmental and governance challenges defined by the SDGs. The Company continued creating sustainable milestones across all its business lines, and even within the workplace, whilst straddling the challenges posed by the second wave of the pandemic and leveraging pockets of growth in the second half & parallelly prioritizing health and safety.

The Company continued to engage with the local Government, and local communities to support relief efforts for Covid-19. The Company continued its focus on safeguarding employees by organizing on-premises vaccination drives, ramping up medical support, creating awareness around holistic health with a special focus on mental health and a continuous flow of verified information. With its commitment towards community development, the company also continued its community outreach efforts through its network of grassroot implementation partners in modified formats befitting the pandemic situation and strengthened its collaboration with partners to provide education to meritorious girls from disadvantaged backgrounds.

During the year, the Company made strategic investments towards sustainability. It moved its registered office to the existing campus in Peenya, making it an integrated campus, walking the talk on sustainability & remain closer to the business. This integrated Leadership in Energy and Environmental Design (LEED) gold certified digital campus houses the Country Office, Motion and Electrification business areas of the Company alongside Process Automation, enhancing cross-business collaborations.

1. https://new.abb.com/news/detail/58643/abb-publishes-sustainability-report-2019
2. https://search.abb.com/library/Download.aspx?DocumentID=9AKK107680A8660&LanguageCode=en&DocumentPartId=&Action=Launch

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In line with Government's Make in India policy, the	With its continued focus on providing customers with the
Company expanded the manufacturing capacity of	best-in-class products, the Company also launched new
low voltage motors for its sustainable campus in	range of low voltage circuit breakers, switches
Faridabad, which is fully powered by Renewable Energy.	manufactured with collaborative robotics and flameproof
The Company's manufacturing campus in Nelamangala	low voltage motors for explosive atmospheres.
with smart factories also received LEED platinum rating.
Recognizing its efforts towards a sustainable future, the	Frost & Sullivan recognized the Company for its
Company's Nelamangala plant has also been recognized	'manufacturing excellence' and 'smart factory' as part of
as 'Water Positive' by The Energy and Resources Institute	its Manufacturing Excellence Awards.
(TERI), India.
Winning customer confidence, the Company commissioned
and won some strategic projects pan India. The Company's
drives have been commissioned for a major vaccine
manufacturer, metallurgy solutions for Tata Steel's
Jamshedpur plant, its Digital compact secondary
substation for Indore Smart City, and Gofa series of robots
for Bector Automation. The Company also secured a melt
shop digitization project for leading steel major JSW.

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SECTION A: GENERAL DISCLOSURES

I. Details of the listed entity

1.	Corporate Identity Number (CIN) of the Listed Entity	L32202K1949PLC032923
2.	Name of the Listed Entity	ABB India Limited
3.	Year of incorporation	1949
4.	Registered office address	Disha, Corporate Office, 3rd Floor, Plot No. 5 & 6, 2nd Stage,
		Peenya Industrial Area IV, Peenya, Bengaluru - 560 058, Karnataka
5.	Corporate address	Disha, Corporate Office, 3rd Floor, Plot No. 5 & 6, 2nd Stage,
		Peenya Industrial Area IV, Peenya, Bengaluru - 560 058, Karnataka
6.	E-mail id	[e-mail]
7.	Telephone	080 2294 9122, 080 2294 9240 / 9153
8.	Website	http://new.abb.com/indian-subcontinent
9.	Financial year for which reporting is being done	2021
10.	Name of the Stock Exchange (s) where shares are listed	National Stock Exchange of India Limited and BSC Limited.
11.	Paid-up Capital
12.	Name and contact detail (telephone email address) of the person	Vimal SS
	who may be contacted in case any queries on the BRSR report	Email: [e-mail]
		Dhenuka Srinivasan
		Email: [e-mail]
13.	Reporting Boundary- Are the disclosures under this report made	Disclosures under this report are made on a standalone basis for
	on a standalone basis (i.e., only for the entity) or on a consolidated	ABB India Limited
	basis (i.e., for the entity and all the entities which form a part of its
	consolidated financial statements taken together)

II. Products/services

14. & 15. Details of business activities and products/services sold by the Company (accounting for 90% of the turnover).

S.No	Description of	Description of Business Activity	Products/Service (Applicable NIC Code)	% of
	Main Activity / ABB			Turnover of
	Business Area			the entity

1	Electrification	Offers a wide-ranging portfolio of products,
		digital solutions and services, from substation
		to socket, enabling safe, smart and sustainable
		electrification. Offerings encompass digital and
		connected innovations for low- and medium-
		voltage, including modular substations,

distribution automation, power protection, wiring accessories, switchgear, enclosures, cabling, sensing and control.

Electricity	Distribution	Equipment,	39
Protection & Control Equipment, Motor
Starting &	Safety, Switches &	Fuse gear

• associated service (27104); Energy Distribution Solutions inside Buildings and low voltage electrical installations, Building automation [27339 (wiring devices & fittings); 26517 (Building Automation)]

2	Motion	Offers complete range of electrical motors,	Large Motors & Generators (27101); Low	36
		generators, drives and services, as well as	Voltage Motors & Services (27103); Drives
		integrated digital powertrain solutions. It serves	Products, System Drives and Traction
		a wide range of automation applications in	Convertors (26109)
		transportation, infrastructure and the discrete
		and process industries.
3	Process Automation	Offers a broad range of solutions for process	Industrial process control equipment (26517)	20
		and hybrid industries, including industry-specific
		integrated automation, electrification and digital
		solutions, control technologies, software and
		advanced services, as well as measurement

• • analytics, and marine and turbocharging offerings.
• RA Business Area excluded as it would cross 90% with the above three Business Areas
• The above-mentioned codes cover 90% of the requirements. Point 14 and 15 as per BRSR format are both covered in the above table.

III. Operations

16. Number of locations where plants and /or operations/offices of the entity are situated

Location	Number of plants	Number of offices	Total
National	25**	21	28
International*
*There are no international operations

** 9 factories as per Factories Act 1948 comprising of multiple plants adding up to 25 across locations

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17.	Markets served by entity
a.	Number of locations
Locations	Number
National - Markets served pan India across all states in the country.	28
International (No. of countries) - Asia, Middle East, Africa, Europe and Americas	5

1. What is the contribution of exports, a percentage of the total turnover of the entity? 13%.
2. A brief on types of customers:
   The Company serves customers across all segments and to all types/categories viz., End users, OEMs, EPCs, Channel Partners, Distributors, Retailers, etc. (covering all types of companies). The Company works closely with industry, utility, transportation and infrastructure customers, serving a diverse range of end-markets, including data centers, food & beverage, oil, gas & chemicals, mining & metals, marine & ports, residential & non-residential buildings, automotive, railways & rolling stock, renewables, conventional power generation, power transmission & distribution, smart cities, and water utilities.

IV. Employees

18. Details as at the end of the Financial year:

a. Employees and workers (including differently-abled)

S.No	Particulars	Total		Male		Female
			No.	%	No.	%
	Employees
1	Permanent (D)	2811	2584	91.92%	227	8.08%
2	Other than Permanent (E)	82	52	63.41%	30	36.59%
3	Total employees (D+E)	2893	2636	91.12%	257	8.88%
	Workers
4	Permanent (F)	338	335	99.11%	3	0.89%
5	Other than Permanent (G)*	849	773	91.05%	76	8.95%
6	Total workers (F+G)	1187	1108	93.34%	79	6.66%

Note: * Trainees, Apprentices and fixed term contractors and retainers

b. Differently-abled Employees and workers

S.No		Total (A)	Male	Female
			No. (B)	No.(C)
	Differently-abled employees
1	Permanent (D)	5	4	1
2	Other than Permanent (E)	0	0	0
3	Total differently-abled employees D+E)	5	4	1
	Differently-abled Workers
4	Permanent (F)	0	0	0
5	Other than Permanent (G)	1	1	0
6	Total differently-abled workers (F+G)	1

19. Participation/Inclusion/Representation of women

			No. and percentage of females
	Total (A)	Number (B)	Percentage of females % (B/A)
Board of Directors	6	3	50%
Key Management Personnel	3	0	0