ABB

INTEGRATED
REPORT
2024


ABB’s new brand positioning “We help industries 
outrun – leaner and cleaner” underpins the next 
phase of the company’s development as a leader in 
electrification and automation following its successful 
transformation period. It articulates what ABB wants 
to be known for in the minds of its customers.
The new brand positioning centers around the word 
“Outrun” and its meaning consists of two parts: 
Keeping ABB’s partners running consistently at high 
performance and at the same time helping them run 
more productively, efficiently and sustainably so they 
can outperform.
“Leaner” stands for ABB’s global leadership role in 
automation, improving the productivity and efficiency 
of every industry’s critical day-to-day operations.
“Cleaner” represents the company’s leadership 
in electrification, decarbonizing the world’s most 
essential industries.
ABB’s new tagline is ‘Engineered to Outrun’. The new 
brand positioning is in line with ABB’s purpose of 
enabling a more sustainable and resource-efficient 
future with its technology leadership in electrification 
and automation. 

About ABB 
ABB is a global technology leader in electri-
fication and automation, enabling a more 
sustainable and resource-efficient future. 
By connecting its engineering and digitaliza-
tion expertise, ABB helps industries run at high 
performance, while becoming more efficient, 
productive and sustainable so they outperform. 
At ABB, we call this ‘Engineered to Outrun’. 
Our company has over 140 years of history and 
around 110,000 employees worldwide. 
Creating success
Transforming 
industries
Leading with technology
Embedding 
sustainability
Addressing the world’s 
­energy challenges
:@=g;@=;:>0
We enable a more 
sustainable and 
resource-efficient 
future with our 
technology leadership 
in electrification 
and automation
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ABB INTEGRATED REPORT 2024
Introduction
Value creation
Outputs and Outcomes
Good governance
Performance-based compensation
Appendix
Introduction
Value creation
Outputs and Outcomes
Good governance
Performance-based compensation
Appendix

Divisions
Corporate
Customers
Business Areas
Business Lines
Electrification
Motion
Robotics & Discrete 
Automation 
Process Automation
Our business areas
Our purpose is why we are in business. It guides 
the Group’s strategic direction and sits at the 
heart of our decentralized operating model, 
the ABB Way. Each of our four business areas – 
­Electrification, Motion, Process Automation 
and Robotics & Discrete Automation – governs 
their respective divisions, ensuring that we 
collectively deliver on our purpose through our 
technology leadership in electrification and 
automation. Our business areas pursue oppor-
tunities to collaborate, driving innovation and 
developing common solutions to best serve our 
customers. At the same time, it is our divisions – 
19 in total – that are closest to our customers; 
they hence have full ownership and account-
ability for their strategies, performance and 
resources in order to provide the best possible 
service to our customers. They drive the success 
of ABB in their daily business.
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Value creation
Outputs and Outcomes
Good governance
Performance-based compensation
Appendix
Introduction
Value creation
Outputs and Outcomes
Good governance
Performance-based compensation
Appendix

ELECTRIFICATION
ABB’s Electrification business area is a global technology leader enabling the 
efficient and reliable use of electricity from source to socket. We collaborate 
with our customers and partners to solve the world’s greatest challenges in 
electrical distribution and energy management. Our portfolio encompasses 
digital and connected innovations for low- and medium-voltage, including elec-
tric vehicle (EV) infrastructure, modular substations, distribution automation, 
power protection, wiring accessories, switchgear, enclosures, cabling, sensing 
and control. We also offer services to improve reliability, availability, predict-
ability and sustainability of electrical systems.
Global market position
No. 3
Divisions
• Distribution Solutions
• Smart Power
• Smart Buildings
• Installation Products
• Service
Revenues
$15.4 billion
Employees
~52,000
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Good governance
Performance-based compensation
Appendix
Introduction
Value creation
Outputs and Outcomes
Good governance
Performance-based compensation
Appendix

Global market position
No. 1
Divisions
• Drive Products
• System Drives
• Motion Services
• NEMA Motors
• IEC LV Motors
• Large Motors & Generators
• Traction
Revenues
$7.8 billion
Employees
~22,000
MOTION
ABB’s Motion business area, the largest supplier of drives and motors globally, is at the 
core of accelerating a more productive and sustainable future. We offer customers the 
complete range of electrical motors, drives, generators, and services, as well as inte-
grated digital powertrain solutions. Therefore, we are able to provide our customers with 
energy efficient, decarbonizing and circular solutions to empower a low-carbon future. 
We serve a wide range of automation applications in transportation, infrastructure and 
the discrete and process industries. Through our domain expertise and technology our 
customers achieve better performance, safety and reliability.
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Value creation
Outputs and Outcomes
Good governance
Performance-based compensation
Appendix
Introduction
Value creation
Outputs and Outcomes
Good governance
Performance-based compensation
Appendix

;=:.0>>,@?:8,?4:9
ABB’s Process Automation business area enables customers to operate some 
of the world’s largest and most complex industrial infrastructures that address 
a wide range of essential needs – from supplying energy, water and materials, 
to producing goods and transporting them to market. We offer a broad range 
of automation, electrification and digital solutions for process, hybrid and mar-
itime industries, including industry-specific integrated control and software as 
well as measurement and analytics solutions and services.
Global market position
No. 2
Divisions
• Energy Industries
• Process Industries
• Marine & Ports
• Measurement & 
Analytics
Revenues
$6.8 billion
Employees
~22,000
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Value creation
Outputs and Outcomes
Good governance
Performance-based compensation
Appendix
Introduction
Value creation
Outputs and Outcomes
Good governance
Performance-based compensation
Appendix

=:-:?4.> /4>.=0?0,@?:8,?4:9
ABB’s Robotics & Discrete Automation business area enables compa-
nies to outperform and become more resilient, flexible and efficient 
through our value-added solutions in robotics as well as machine 
and factory automation. With our integrated automation solutions, 
our application expertise across a wide scope of industries and our 
global presence, we deliver tangible customer value. Our focus on 
innovation includes extensive work in artificial intelligence, as well as 
an ecosystem of digital partnerships and the expansion of our pro-
duction and research capabilities.
Global market position
No. 2
Divisions
• Robotics
• Machine Automation
Revenues
$3.2 billion
Employees
~11,000
E-MOBILITY
ABB’s E-mobility division, formerly part of the Electrification busi-
ness area, has been an independent business and separate operating 
segment since January 2023. It is reported in “Corporate and Other”. 
ABB E-mobility is a global leader in electric vehicle charging solu-
tions, with the highest uptime and largest installed base of Direct 
Current (DC) fast chargers in the market.
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ABB INTEGRATED REPORT 2024
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Value creation
Outputs and Outcomes
Good governance
Performance-based compensation
Appendix
Introduction
Value creation
Outputs and Outcomes
Good governance
Performance-based compensation
Appendix

Wk…m{xkygzgmrgtik
60D142@=0>
$ in millions, unless otherwise stated
FY 2024
FY 2023
Change
ComparableO
Financial
Orders
33,690
33,818
0%
1%
Order backlog (end December)
21,221
21,567
-2%
4%
Revenues
32,850
32,235
2%
3%
Income from operations
5,071
4,871
4%
Operational EBITAO
5,968
5,427
10%
11%P
as % of operational revenuesO
18.1%
16.9%
+1.2 pts
Income from continuing operations, net of tax
3,955
3,848
3%
Net income attributable to ABB
3,935
3,745
5%
Basic earnings per share ($)
2.13
2.02
6%Q
Dividend per share (in CHF)
0.90R
0.87
3%
Cash flow from operating activities
4,675
4,290
9%
Net debtO (end December)
1,285
1,991
-35%
EnvironmentalS,T
Energy consumption (GWh)
1,292
1,297
-0.4%
Renewable electricity (%)
95
94
+1.0 pts
Own operations emissions scope 1 and 2 (kilotons COFe)U
138
151
-9%
Value chain emissions scope 3 (kilotons COFe)V
394,952
447,426
-12%
Total waste sent to landfill (kilotons)
9.3
10.1
-8%
Social
Total number of employees (FTE)
109,900
107,900
2%
Women in workforce (%)W
27.8
27.7
0.1 pts
Women in senior management positionsON
 (%)W
21.3
21.0
0.3 pts
Community spending
9
11.5
-2.5
1.	 For alternative performance measures, see chapter Alternative performance measures.
2.	 Constant currency (not adjusted for portfolio changes).
3.	 EPS growth rates are computed using unrounded amounts.
4.	 Proposed by the Board of Directors and subject to approval by shareholders at the Annual General Meeting on March 27, 2025, in Zurich, Switzerland.
5.	 Figures are adjusted for portfolio changes.
6.	 When reporting figures in tons, kilotons or megatons we refer to metric tons, kilotons or megatons.
7.	 Scope 2 refers to market-based values.
8.	 In 2023, we published a “representative scenario” and a “strict scenario”. Going forward, we report the strict scenario as basis for our scope 3 emissions, taking a 
more conservative approach based on full energy input for certain products.
9.	 Percentages calculated using headcount data.
10.	At ABB, senior managers are defined as employees in Hay grades 1–7, including division presidents.
,-->@>?,49,-474?D=,?492>

CDP Climate
CDP Water
CDP Supplier  
EngagementO
EcoVadis 
ISS ESG  
Corporate
MSCI ESGP
S&P Global  
CSA score
Sustainalytics  
ESG RiskQ
A
A-
A
Gold 75/100
Prime status B
AAA
64/100
15.2
1.	 The 2024 Supplier Engagement score will be available in March 2025.
2.	 The use by ABB of any MSCI ESG Research LLC or its affiliates (“MSCI”) data, and the use of MSCI logos, trademarks, service marks or index names herein, do not 
constitute a sponsorship, endorsement, recommendation, or promotion of ABB by MSCI. MSCI services and data are the property of MSCI or its information providers 
and are provided ‘as-is’ and without warranty. MSCI names and logos are trademarks or service marks of MSCI.
3.	 Copyright ©2023 Morningstar Sustainalytics. All rights reserved. This publication contains information developed by Sustainalytics (www.sustainalytics.com). Such 
information and data are proprietary of Sustainalytics and/or its third-party suppliers (Third Party Data) and are provided for informational purposes only. They do 
not constitute an endorsement of any product or project, nor an investment advice and are not warranted to be complete, timely, accurate or suitable for a particular 
purpose. Their use is subject to conditions available at https://www.sustainalytics.com/legal-disclaimers

2	 Find out more about our sustainability ratings on our website ABB ESG ratings.
10
ABB INTEGRATED REPORT 2024
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Value creation
Outputs and Outcomes
Good governance
Performance-based compensation
Appendix
Introduction
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Outputs and Outcomes
Good governance
Performance-based compensation
Appendix

140+
years history
ABB in 2024
48;:=?,9?8470>?:90>49

•	 ABB announced the approval of its Net Zero 
emissions reduction targets by the Science-Based 
Targets initiative (SBTi): 80 percent reduction of 
absolute scope 1 and scope 2 (operational) GHG 
emissions from 2019 to 2030, and 100 percent by 
2050, both in line with the 1.5°C pathway; 25 percent 
reduction of scope 3 (value chain) GHG emissions 
from 2022 to 2030, in line with the well below 2°C 
pathway, and 90 percent by 2050, in line with the 
1.5°C pathway.
•	 ABB opens new $100 million campus in Wisconsin, 
US, to support future growth in ABB’s largest 
market with production of electric drive technology 
used in a variety of industries.
•	 Share buybacks: On April 1, ABB launched its 
new share buyback program of up to $1 billion, 
16,715,684 shares were bought under the plan 
which ended in January 2025 – for a total amount 
of approximately $0.9 billion.
•	 On August 1, Morten Wierod took over as the new 
CEO of ABB. Giampiero Frisio stepped into his role 
as the new President of the Electrification Business 
Area and Brandon Spencer as the new President 
of the Motion Business Area and on November 
1, Mathias Gaertner assumed the role of General 
Counsel and Company Secretary.
•	 On March 21, the Annual General Meeting elected 
two new Board members, Johan Forssell and 
Mats Rahmström. They replace Jacob Wallenberg 
and Gunnar Brock who decided not to stand 
for reelection.
•	 ABB filed a Form 15F to voluntarily deregister 
and suspend SEC reporting on June 10, 2024. 
The deregistration became effective in September 
2024. The company will continue to comply with its 
financial reporting and other obligations pursuant 
to applicable stock exchange listing rules in 
Switzerland and Sweden.
,--499@8-0=>
GS
Revenues
18.1%
Operational  
EBITA margin
78%
Reduction of scope 1 
and 2 GHG emissions 
since 2019
>170
manufacturing sites
GS
Order intake
GS
R&D investment 
21.3%
Women in senior  
management positions
GS
Net income
11
ABB INTEGRATED REPORT 2024
Introduction
Value creation
Outputs and Outcomes
Good governance
Performance-based compensation
Appendix

The ABB Integrated Report describes how we 
create value under the ABB Way – our decentral-
ized operating model. It provides a comprehen-
sive view of our business strategy, governance, 
performance, and value creation in relation to 
different forms of inputs used and outcomes 
created through the activities of our divisions 
and business areas, united under the ABB brand.
The report integrates the most important infor-
mation about our financial and sustainability 
strategy, targets and performance and is mainly 
aimed at our shareholders and investment com-
munity, but also informs other stakeholders like 
customers, employees, partners, governments, 
civil society and suppliers.
As a global company with stock exchange list-
ings in Switzerland and Sweden, we adhere to 
internationally recognized standards and frame-
works. In addition to performance measures 
prepared in accordance with US GAAP (Generally 
Accepted Accounting Principles), we use alter-
native performance measures deemed useful in 
evaluating ABB’s operating results.
The Integrated Report 2024 is published as 
part of our annual reporting suite and is avail-
able in English and German. Only the original 
English version is binding. For environmental 
reasons, only a limited number of copies of the 
Integrated Report are printed. All other reports 
are published digitally.
The reporting period and scope of the data cov-
ers our operations worldwide and provides an 
overview of financial and sustainability-linked 
performance for the full year 2024 and reflects 
the status as of December 31, 2024.
“We, ABB’s senior management, and the Board of Directors, 
take responsibility for the accuracy and integrity of the 
information disclosed within our Integrated Report 2024, which 
addresses matters that have or may have a significant effect 
on how we create and share value. We believe this report is 
aligned in all material aspects with the recommendations and 
standards issued by the International Integrated Reporting 
Framework (now IFRS Foundation).”
About this report
	

2 Please refer to 
“Supplemental 
Reconciliations and 
Definitions” in ABB’s 
Q4 2024 Financial 
Information.
12
ABB INTEGRATED REPORT 2024
Introduction
Value creation
Outputs and Outcomes
Good governance
Performance-based compensation
Appendix
Introduction
Value creation
Outputs and Outcomes
Good governance
Performance-based compensation
Appendix

Our Value Creation Model ­determines 
the structure of our report
Our value creation model outlines how we create 
value by delivering on our purpose. In this re-
port, it also serves as a guide for the structure. 
The value creation model outlines how we draw 
on inputs and, through our decentralized oper-
ating model, the ABB Way, create sustainable 
value in the short-, mid- and long-term by trans-
forming them into outputs and outcomes: de-
livering leading financial performance, creating 
world-class technology, enabling a low-carbon 
society, preserving resources and promoting 
social progress, underpinned by a culture of in-
tegrity and transparency along the value chain.
The illustration of our Value Creation Model on 
page 34 and 35 is interactive and by clicking on 
the different icons and sections you will be led 
to the respective section in the report to learn 
more about our value creation.
A,7@0.=0,?4:98:/079,A42,?4:9
Throughout the report you will find this icon, indicating in which section 
of the Value Creation Model you are; by clicking on it, you will return to 
the main illustration on pages 34 and 35.
the abb way
Our inputs
Inputs used to run our 
business:
• Financial
• Intellectual
• Natural
• Manufactured
• Human
• Social/relationship
What we do
 
Using the inputs, we run our 
business activities in line with our 
operating model, the ABB Way
What we create
 
By transforming the inputs 
into products and solutions, 
we create value for all our 
stakeholders
 
 
 
G
o
v
e
r
n
a
n
c
e
 
B
r
a
n
d
P
e
o
p
l
e
 
&
 
C
u
l
t
u
r
e
B
u
s
i
n
e
s
s
 
m
o
d
e
l
ABB
purpose
13
ABB INTEGRATED REPORT 2024
Introduction
Value creation
Outputs and Outcomes
Good governance
Performance-based compensation
Appendix
Introduction
Value creation
Outputs and Outcomes
Good governance
Performance-based compensation
Appendix

,--,99@,7=0;:=?492>@4?0

Our Annual Reporting Suite for the full year 2024 is filed 
with the SIX Swiss Exchange in Zurich, Switzerland and the 
NASDAQ OMX Stockholm Exchange in Sweden and can be 
viewed on our website. It ­consists of the following reports, 
with the Integrated Report being a condensed summary:
Integrated Report  
	
English (PDF)
	
German (PDF)
Sustainability Statement  
	
English (PDF)
Corporate Governance ­Report  
	
English (PDF)
Compensation Report  
	
English (PDF)
ESEF version of  
ABB Annual Reporting Suite 
	
ESEF version (XHTML)
Financial Report  
	
English (PDF)
14
ABB INTEGRATED REPORT 2024
Introduction
Value creation
Outputs and Outcomes
Good governance
Performance-based compensation
Appendix
Introduction
Value creation
Outputs and Outcomes
Good governance
Performance-based compensation
Appendix

‘ghrkuliutzktzy
01
Utzxuj{izout
17	
Chairman’s letter
20	
CEO Q&A
24	
ABB equity story
30	
ABB share performance
02
bgr{kixkgzout
33	
Our value creation model
36	
Our strategic direction
38	
Our business environment
42	
Our inputs for value creation
44	
ABB Way
47	
Risks and opportunities
03
[{zv{zygtju{ziusky
51	
Targets and performance overview
54	
We deliver leading financial performance
65	
We create value through world-class 
technology
74	
We enable a low-carbon society
83	
We preserve resources
89	
We promote social progress
103	
We embed a culture of integrity and 
transparency along the extended value chain
112	
We help industries outrun – leaner and 
cleaner: case studies
04
Suujmu|kxtgtik
125	
Corporate Governance
128	
Board of Directors
129	
Executive Committee
05
\kxluxsgtikhgykj
Ousvktygzout
133	
Extracts from Compensation 
Committee Chair Letter
135	
Board compensation
136	
Executive Committee 
compensation
140	 Sustainability-related 
considerations in ABB’s 
compensation
06
Appendix
143	
Alternative performance 
measures
146	
Key terms
148	
Financial calendar 2025
15
ABB INTEGRATED REPORT 2024
Introduction
Value creation
Outputs and Outcomes
Good governance
Performance-based compensation
Appendix
Introduction
Value creation
Outputs and Outcomes
Good governance
Performance-based compensation
Appendix

01
INTRODUCTION
17	
Chairman’s letter
20	
CEO Q&A
24	
ABB equity story
30	
ABB share performance

Dear shareholders,
The year 2024 was marked by change at ABB and 
beyond. Our world faced yet more disruption – 
both positive and challenging. Innovation has 
been speeding up, driven in large parts by gen-
erative artificial intelligence (AI). Economic and 
geopolitical volatility, meanwhile, was on the 
increase, and global temperatures continued 
to set new record highs, serving as a powerful 
reminder that climate change is an increasingly 
urgent challenge.
Against that backdrop, ABB has been thriving. 
As industries increasingly need to do more with 
less, we have supported them to become more 
efficient, productive and sustainable, helping 
them outrun – leaner and cleaner.
After Morten Wierod succeeded Björn Rosengren 
as our CEO on August 1, our business continued 
to deliver strong financial performance. Key 
enablers of our success are our expertise in elec-
trification and automation. But also, our short 
and resilient supply chains and our decentralized 
operating model, the ABB Way, which empowers 
our businesses to make decisions close to the 
customers they serve. These strengths enable us 
to maintain output in challenging situations and 
respond at speed to changing circumstances 
and customer needs.
Tackling climate change, our leading electrifi-
cation and automation technologies continued 
to reduce energy consumption and emissions in 
the largest emitting sectors, including power, 
industry, transport, and buildings and infra-
structure. A good example is our role in reducing 
the energy consumption of data centers, which 
are becoming even bigger consumers of power 
due to the vast energy needs of AI applications. 
By 2026, data centers globally are expected 
to consume the same amount of electricity as 
Japan (IEA), which makes it essential that we 
help them to become leaner and cleaner and ac-
celerate the shift to sustainable energy sources.
We can look back at a strong performance for 
ABB as comparable orders, revenues and profits 
continued to grow, despite challenging markets 
for some of our businesses. Thanks to this, 
the Board of Directors will be proposing to the 
Annual General Meeting a dividend of CHF 0.90 
per share, in line with our policy of paying a ris-
ing, sustainable dividend per share over time.
We are delivering record levels of profitabil-
ity compared to just a few years ago and will 
continue to focus on margins while driving 
profitable growth and further embedding the 
ABB Way into our organization. I am confident 
that by putting a strong focus on these areas, 
ABB has the potential to become an even better 
performing company in the future.
The success and growth of ABB have always 
depended on our ability to innovate. Research 
and development (R&D) plays an important role 
in ensuring we remain relevant for customers 
and we have increased our R&D spend by about 
40 percent since 2020 excluding the impact 
from divisional exits. During 2024, we made 
important strides in incorporating generative 
AI into our offerings and business processes. 
These solutions will help us improve energy and 
resource efficiency and productivity. Through 
innovation, we keep improving the operational 
effectiveness of ABB and our customers and ac-
celerate decarbonization across value chains.
Ongoxsgt"yrkzzkx
In 2024, we began an important chapter at ABB, with the appoint-
ment of Morten Wierod as CEO. On the strength of our decentralized 
ABB Way operating model, we were able to make further progress 
across several of our key priorities. Our teams remain focused on 
driving profitable growth while continuing to strengthen account-
ability further in the divisions. Sustainability continues to be at the 
center of our business and customer offering. All in all, we are mak-
ing sure that ABB continues to be well positioned in the long term.
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Outputs and Outcomes
Good governance
Performance-based compensation
Appendix

“The Board of Directors and I are absolutely confident 
in the ability of ABB’s management team to continue 
to lead this great company and deliver superior value 
for all of our stakeholders.”
PETER VOSER | CHAIRMAN OF THE BOARD OF DIRECTORS
18
Introduction
Value creation
Outputs and Outcomes
Good governance
Performance-based compensation
Appendix

Acquisitions are another key driver of growth. 
We are always on the lookout to invest in busi-
nesses that add value and companies that de-
velop breakthrough technologies. In 2024, we 
extended our market and technology leadership 
by signing agreements to acquire established 
businesses, such as the power electronics 
business of Gamesa Electric in Spain, Siemens’ 
Wiring Accessories business in China, as well as 
smaller companies specializing in AI-based ap-
plications for electrification and automation.
Sustainability continues to be a key focus of our 
business. In 2024, our scope 1, 2 and 3 emissions 
reduction targets for 2030 and 2050 were val-
idated by the Science Based Targets initiative 
(SBTi). The SBTi validation confirms that our ap-
proach is science-based in accordance with the 
Paris Agreement on climate change.
Last year also saw changes to our Board of 
Directors as Jacob Wallenberg decided to step 
down from his position after being on the 
board for almost 25 years. In addition, Gunnar 
Brock decided not to stand for reelection. I 
am very proud that with Johan Forssell and 
Mats Rahmström we have welcomed two new 
members with a particular focus on industrial 
companies and decentralized operating mod-
els who complement the competencies of our 
board perfectly.
And our board continues to evolve as we sug-
gest Claudia Nemat for election at our March 
2025 AGM. As a member of Deutsche Telekom’s 
management team she is responsible for tech-
nology and innovation, covering crucial issues 
like cyber security and – of course – artificial 
intelligence. At the same time, Lars Förberg has 
decided not to stand for re-election and I would 
like to thank him for his outstanding contribu-
tion to ABB’s successful transformation over the 
past years.
The Board of Directors and I are absolutely con-
fident in the ability of ABB’s management team 
to continue to lead this great company and de-
liver superior value for all of our stakeholders. 
With the ABB Way, we have the right operating 
model in place. Our businesses are aligned with 
our purpose of enabling a more sustainable and 
resource-efficient future with our leading elec-
trification and automation solutions. And most 
important of all, we have around 110,000 tal-
ented and motivated employees who have con-
sistently delivered strong results.
On behalf of the Board of Directors, I would like 
to thank our people for another year of excel-
lent performance and to say a special thanks 
to Björn for his outstanding leadership of our 
company and to Morten for a strong start. And 
of course, I want to thank you, our shareholders, 
for your trust and support.
Best regards, 
PETER VOSER 
Chairman of the Board of Directors
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Introduction
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Outputs and Outcomes
Good governance
Performance-based compensation
Appendix

CEO Q&A
Having assumed the role of CEO in August, Morten Wierod explains 
how he intends to lead ABB forward, following its transformation 
into a better performing, more transparent and agile company.
20
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Outputs and Outcomes
Good governance
Performance-based compensation
Appendix

Morten, what were the highlights of 2024? 
How did ABB perform?
This year we made good progress on many 
fronts. On the performance side, our financial 
results continued to improve, despite the un-
certain economic and geopolitical environment 
in which we are operating. This shows that the 
ABB Way is the right operating model for this 
company. 2024 was a new record year for us 
in many ways as we improved on most of our 
financial headlines. The market for robotics 
continued to be challenging but given the aging 
global labor force and the trend for reshoring 
and nearshoring, we are confident in the lon-
ger-term prospects of this business.
On M&A we ramped up our activities signifi-
cantly, although not all closed yet, announcing 
eight acquisitions with annual revenues over 
$500 million. We also launched several ground-
breaking innovations. One is a next-generation 
robotics platform which increases business 
productivity and flexibility through faster, 
more precise and more autonomous automa-
tion; another is a new concept to improve the 
energy efficiency of medium-voltage motors, 
which account for 10 percent of the world’s 
electricity consumption.
I am particularly proud of the improvement in 
our employee engagement score, which rose for 
the sixth consecutive year to 78 percent, making 
ABB a best-in-class company.
You succeeded Björn Rosengren as CEO on 
August 1. How were your first months in the 
new role? Are you planning to make 
any changes?
My first five months as CEO have been energiz-
ing. ABB is in good shape and I have the privi-
lege to partner with a great leadership team, 
including the new Electrification and Motion 
Presidents. What’s made the transition easier 
is that I have been deeply involved in ABB’s 
transformation from the start, having led the 
implementation of our successful decentralized 
operating model, ABB Way, in the two largest of 
our four business areas.
In terms of where we go from here, the ABB Way 
is here to stay. That means we will maintain 
consistency in our ways of working, guided by 
our purpose. We will continue to focus on ac-
countability, transparency and speed to build a 
high-performance, high-integrity collaborative 
culture and to actively manage our portfolio. 
Given my experience at ABB, I believe I am well 
positioned to challenge and guide the business 
areas and divisions to reach higher and deliver 
even better profitability and growth – both or-
ganic and acquired – in line with our targets.
We have also launched a new global brand posi-
tioning for ABB to increase customers’ under-
standing of what ABB does and how we create 
superior value for our customers. Increasing 
familiarity with what ABB does represents a 
significant commercial opportunity for us and 
should also help ABB attract top talent.
Driving profitable growth is a priority for you, 
how do you plan to achieve that? Are you fo-
cusing on ramping up M&A?
Following our transformation, we are well po-
sitioned to capitalize on the trend towards 
electrification and on the growing demand 
for automation as companies seek to improve 
their productivity and flexibility. We ended the 
year with about 60 percent of our revenues on 
a growth mandate, which early in 2025 changed 
to 70 percent in growth mode. Our management 
compensation and strategic priorities have 
been adjusted accordingly.
We will drive organic growth by increasing 
investments in R&D and capitalizing on our 
technology leadership, which is based on best-
in-class hardware operated with embedded 
software and control functions. Approximately 
60 percentO of our products and services are 
digitally enabled and over halfO of our R&D pro-
fessionals are dedicated to software. At the 
same time artificial intelligence (AI) is becoming 
an increasingly important driver of how we cre-
ate value for the industries we serve, and we are 
committed to responsible development and use.
When it comes to M&A, we have been steadily 
building up a strong pipeline of acquisition 
targets. With the deals announced already 
we should be within our average target 
range of adding 1 to 2 percent of revenues 
via acquisitions.
What are your capital allocation priorities?
Our goal is profitable growth. That means our 
first priority is to fund organic growth through 
investments in R&D and production capacity. 
Beyond that, our policy is to pay a rising, sus-
tainable dividend over time. With our remaining 
free cash flow, we intend to increase our M&A 
activities. And as we announced a new, larger 
program of up to $1.5 billion for 2025, share 
buybacks will remain on our agenda, but ulti-
mately, the utilization level of buyback programs 
depends on how much we spend on M&A.
1.	Management 
estimates.
21
ABB INTEGRATED REPORT 2024
Introduction
Value creation
Outputs and Outcomes
Good governance
Performance-based compensation
Appendix

What is your approach to investing in R&D and 
technology? What about venture 
capital investments?
R&D investments are driven by the divisions to 
foster innovation that creates the most mean-
ingful value for our customers. We are commit-
ted to keep our R&D investments to between 
4.5 and 5 percent of our revenues.
Our technology pipeline speaks for itself. This 
year, we introduced our next generation of SFJ-
free switchgear solutions for applications up to 
24 kV. These will help our customers comply with 
regulations in the European Union and California, 
which are banning SFJ gas, a potent greenhouse 
gas, in new electrical equipment up to 24 kV.
On the venture side, we continue to acquire 
minority stakes in promising start-ups, having 
invested in more than 30 companies in the past 
five years. Start-ups are an important part of 
our R&D ecosystem, especially when it comes to 
specialized software and AI.
ABB has delivered another record margin of 
18.1 percent, already near the top of your tar-
get range. Do you think it’s time to raise 
your targets?
We raised our margin target quite recently, in 
November 2023, to an Operational EBITA margin 
in the range of 16–19 percent. We are close to 
the top of that range, but we are not there yet. 
Once we have achieved this level, we will deter-
mine what the next steps are for ABB.
I believe the best is yet to come for ABB. We 
are starting 2025 with some 30 percent of our 
divisions still having a “profitability mandate”, 
which means they can improve their margins 
further. Some divisions have achieved very high 
levels of profitability supported by a strong 
market environment and we want to ensure 
these levels are sustainable throughout the 
cycle. With our new ways of working, we are a 
more agile and resilient company.
You said that the ABB Way operating model is 
here to stay. How can it create even more value 
for ABB?
I believe we can build further on the ABB Way 
to support both growth and margin. At the mo-
ment, accountability is with our divisions, which 
are the highest operating level of the company, 
but we intend to move it even deeper, to the 
level of business lines and product groups. 
I have seen the success of embedding the 
ABB Way even further into our divisions in my 
previous role in Electrification.
You mentioned the new brand positioning to 
improve understanding of what ABB does. 
What is that about?
Our new brand positioning underpins the next 
phase of ABB’s development as a leader in 
electrification and automation following our 
successful transformation period. It articulates 
what ABB wants to be known for in the minds 
of our customers and focuses on what we have 
learned are their main business needs and 
where we at ABB can provide superior value, 
which is helping industries become leaner and 
cleaner, or as we say – helping them “outrun”.
What kind of a leader are you?
I believe in keeping things simple and efficient, 
speaking up and taking ownership. My approach 
is to empower people with accountability and 
trust, and I expect transparency and ownership 
in return. What counts for me is a winning mind-
set and approaching business as a team sport. 
We want to win but work should also be fun. My 
motto is: even better, together.
How are you doing on sustainability?
We are making good progress towards our sus-
tainability targets and have embedded sustain-
ability even further into our divisions. Versus our 
2019 baseline, we cut scope 1 & 2 greenhouse 
gas emissions by 78 percent, and our scope 3 
emissions were reduced by 8 percent compared 
to the 2022 baseline, putting us well on track to 
achieve our targets. We also helped our custom-
ers avoid 66 megatons of emissions throughout 
the lifecycle of our products sold in 2024 with 
our energy and resource efficient technologies 
as compared to alternative solutions.
Our emissions reduction targets for 2030 and 
2050 were validated by the Science Based 
Targets initiative (SBTi), affirming that they are in 
accordance with the Paris Agreement on climate 
change. Our focus now is on achieving these 
targets and helping our customers on their jour-
neys. The divisions are in the lead on implement-
ing the changes needed to make these a reality.
“We will continue to focus on accountability, 
transparency and speed to build a high-
performance, high-integrity collaborative 
culture and to actively manage our portfolio.”
MORTEN WIEROD | CHIEF EXECUTIVE OFFICER
22
ABB INTEGRATED REPORT 2024
Introduction
Value creation
Outputs and Outcomes
Good governance
Performance-based compensation
Appendix

We also improved gender diversity, increasing 
the number of women in senior management po-
sitions to 21.3 percent, and focusing on safety; 
our lost-time injury frequency rate stands at 
0.15, down from our 2019 baseline of 0.24.
How is the turnaround of the E-mobility busi-
ness going? Is an IPO still planned?
The turnaround of ABB E-mobility is progress-
ing. It now has a focused and modular portfolio 
and launched its flagship A400 charger during 
the year. While an impact on order numbers 
is not yet visible, it has seen some very good 
customer feedback so far. We will reassess the 
timing for a potential IPO at a later stage, as 
the business and the market need to be fit for 
such a move.
Final question: after five months as CEO, how 
are you finding the job?
I’m enjoying it immensely. I have been doing a 
lot of travelling, especially to meet customers 
and colleagues from parts of the business that I 
was less familiar with when I took over the role. 
I have also met many investors and other stake-
holders. It’s been a very positive experience – 
ABB is well-regarded as a technology leader and 
partner that is well positioned to continue bene-
fiting from key global megatrends.
I want to thank everyone at ABB for the strong 
support that I have received since I became 
CEO, especially my colleagues on the Executive 
Committee. We have a highly experienced, ex-
cellent team running the company, as well as 
around 110,000 talented people who have deliv-
ered another year of excellent performance.
23
ABB INTEGRATED REPORT 2024
Introduction
Value creation
Outputs and Outcomes
Good governance
Performance-based compensation
Appendix

ABB equity story
ABB is well-positioned in a changing world: Our global market-lead-
ing positions in electrification and automation strategically posi-
tions us to capitalize on the long-term megatrends characterized 
by the energy transition towards electricity and integration of new 
energy sources, demographic shifts and the need for an increasingly 
flexible and efficient manufacturing set-up.
Future-proof
ABB purpose and customer offering aligned with secular trends
:ZW;ZWUTXJ
We enable a more sustainable and resource-efficient future with 
our technology leadership in electrification and automation
1.	IEA World Energy Outlook 2024, Announced Pledges Scenario
2.	United Nations World Population Prospects 2024
Our offering
Supports customers to:
More electricity
Electricity demand 
growing ~9× faster than 
total energy demand in 
2023–2030, resulting 
in ~70% higher average 
annual investment into 
electricity networks in 
2024–2030 (vs 2016–2023)O
Higher energy efficiency
~45% of the world’s 
electricity is converted 
into motion by electric 
motors yet only ~23% of 
the world’s electric motors 
are optimized through 
the control of drives
New energy sources
Share of low-carbon 
sources in global energy 
mix to increase +50% – 
points from ~20% today 
to ~70% in 2050O
Shrinking labor force
Global number of working 
age people (15 to 64 years) 
per retiree (65 years or 
over) to fall by ~24% in 
2023–2035P
•	 Reduce waste and increase 
circularity
•	 Reduce carbon intensity
•	 Increase labor productivity
•	 Increase energy efficiency
•	 Increase flexibility
•	 Reduce footprint
•	 Reduce downtime
•	 Increase safety and improve 
­working environment
Introduction
Value creation
Outputs and Outcomes
Good governance
Performance-based compensation
Appendix

Our equity story is based on five pillars:
1. Market leader with world-class technology
Our market-leading position is based on 
cutting-edge technology including value 
derived from software, our ability to scale, 
decades-long domain expertise and close 
customer relationships.
Our four business areas have market-leading 
positions in their respective market segments. 
This gives us strong economies of scale and 
we can achieve profitability levels that support 
continued investments in R&D. These invest-
ments help us maintain and improve our man-
ufacturing assets, allowing us to defend and 
strengthen our leading market positions in elec-
trification and automation.
Our cutting-edge technology, which includes 
both hardware and software, creates superior 
customer value as we help industries optimize, 
electrify and decarbonize their operations. 
Being present in various verticals for many de-
cades has enabled us to build unique domain 
expertise as well as a large installed base and 
strong long-term relationships with end-cus-
tomers and channel partners. Our deep under-
standing of customer needs and operations is 
at the root of ABB’s customer value creation.
2. ABB Way – Accountability, transparency 
and speed
Through the period of 2019–2023 ABB has trans-
formed into a more agile and efficient company 
where accountability, transparency and speed 
are fostered through the implementation of our 
decentralized operating model, the ABB Way. 
The ABB Way has been an integral part of 
making 2024 another record year for financial 
performance and under the leadership of our 
new CEO, Morten Wierod, we are fully commit-
ted to consistency in the ABB Way operating 
model. This is founded on our belief in having:
1. operating decisions made close to customers;
2. select common processes and
3. a strong performance management system.
In our decentralized model, operating decisions 
are taken close to customers in our divisions, 
which have full ownership and accountability 
for their respective businesses, including R&D, 
Capital expenditures (CapEx), strategy and M&A. 
These businesses benefit from select common 
processes linked to ABB brand, human capital, 
compliance and integrity. Each division should 
benefit from being part of the ABB Group. Our 
leaders are encouraged to cooperate where 
there are synergies and it makes sense for the 
business. Lastly, our strong performance man-
agement system ensures performance can be 
tracked quickly and easily with standard key 
performance indicators (KPIs) to facilitate speed 
in decision making. Each division is given a man-
date of stability, profitability or growth, which 
translates into strategic priorities and appropri-
ate targets that are supported by incentives.
Looking forward, we aim to move accountability 
further down within the organization, empow-
ering business line leaders with strategic man-
dates and corresponding incentives to further 
drive results. Clear mandates and accountability 
at the business line level will further enhance 
transparency and operational speed across 
the organization.
Digital content in our offering to 
support gross margin and industry 
leadership in technology
Continue to develop Industrial 
Software and Digital services 
organically and make bolt-on 
acquisitions:
• Invest to create synergies with our 
offering
• Return on investment
• Growth
Embedded software enables 
differentiation
VALUE FROM SOFTWARE
around
60%
of software, products 
and services are 
digitally enabled¹
Software or digitally enabled 
products and services
83%
Products and solutions
17%
Services
1.	Management estimates based on 
FY 2023 orders.
25
ABB INTEGRATED REPORT 2024
Introduction
Value creation
Outputs and Outcomes
Good governance
Performance-based compensation
Appendix

3. Increasing growth rates
We target an average comparable revenue growth 
of 5–7 percent through the economic cycle. In 
addition, we want to utilize our strong balance 
sheet for acquisitions, adding 1–2 percent of rev-
enues on average through the economic cycle.
The higher comparable growth ambitions are 
supported by our reshaped business portfolio, 
working in the ABB Way operating model and 
our exposure to accelerating megatrends and 
sustainability demand drivers.
At the same time, we aim to have a high pace 
of acquisitions. The responsibility to build the 
pipeline of potential targets has been trans-
ferred to the divisions and each management 
team is responsible for adding the necessary 
technology and footprint for achieving market 
leading positions. Acquisitions can be made in 
all divisions to fill gaps in technology, however, 
only divisions with a growth mandate are active 
in strategic acquisitions.
In 2024, we accelerated strategic partnerships 
and bolt-on acquisitions led by our divisions, 
completing nine new and eight follow-on ven-
ture capital investments and seven bolt-on 
acquisitions. Annual revenues from all deals an-
nounced this year put us within our target range 
for inorganic growth, and each business has 
built good target pipelines. We are making prog-
ress but still have some way to go before fully 
reaching our desired M&A performance culture.
Internal
02
Working in ABB Way operating model 
with divisions accountable for growth 
with decision-making closer to the market
• ABB Way operating model – transferred 
operating decisions to divisions. Accountable 
for organic and inorganic growth
• Clarity and consistency on strategic mandate 
in businesses
• 70% of revenues with growth mandate
Internal
01
Reshaped portfolio around the ABB 
purpose of increased sustainability 
and resource efficiency through 
electrification and automation
• Exit of EPC business
• Completed exit of three divisions
• Focus on quality of revenues
• Continuous business portfolio assessment
Accelerating megatrends 
and sustainability drivers for 
electrification and automation
• The world going electric – Energy security – 
Energy efficiency – Automation
• Global carbon reduction targets
• Regulations – reporting standards
• Impact on corporates operational performance 
due to rising cost of carbon
• Customer, employee and shareholder focus
External
03
5–7% average
Comparable 
growth
through economic cycle
Revenues
Comparable revenue growth
6% avg
USD bn
%
10
15
20
25
30
35
-5
0
5
10
15
2024
2023
2022
2021
2020
2019
26
ABB INTEGRATED REPORT 2024
Introduction
Value creation
Outputs and Outcomes
Good governance
Performance-based compensation
Appendix

4. Improving performance
After several years of transformation to a more 
sustainably profitable company, there is now an 
increased focus on growth. It goes hand in hand 
with continuous improvements in ROCE and 
Operational EBITA margin, which is expected to 
remain at a best-in-class level of greater than 
18 percent, even when achieving a higher pace 
of acquisitions.
Our new ways of working are yielding results, 
and we continued to improve financial per-
formance, achieving new all-time high (ATH) 
levels for several KPIs in 2024. We are actively 
enabling a low-carbon society as well as work-
ing with our customers and suppliers to imple-
ment sustainable practices across our value 
chain and the life cycle of our products and 
solutions. We are equally committed to driving 
social progress, along with our suppliers and in 
our communities.
20,000
25,000
30,000
35,000
$ in millions
%
0
1,000
2,000
3,000
4,000
$ in millions
%
0.00
0.50
1.00
1.50
2.00
2.50
3.00
2024
2023
2022
2021
2020
$ per share
0
2,000
4,000
6,000
$ in millions
new ATH
%
0
5
10
15
20
25
2024
2023
2022
2021
2020
%
0
100
200
300
400
500
600
2024
2023
2022
2021
2020
Ktons CO2e
new ATH
-10
0
10
20
2024
2023
2022
2021
2020
REVENUES
0
100
200
300
2024
2023
2022
2021
2020
FREE CASH FLOW AND
CONVERSION RATE
BASIC EPS
5
10
15
20
2024
2023
2022
2021
2020
OPERATIONAL EBITA
RETURN ON CAPITAL
EMPLOYED (ROCE)
SCOPE 1&2 GHG 
EMISSIONS
Operational EBITA
Operational EBITA margin %
All-time-high (ATH)
Scope 1&2 GHG emissions
ROCE
Target range >18%
All-time-high (ATH)
Revenues
Comparable growth %
Free cash flow
% of net income
11.1
14.2
15.3
16.9
18.1
21.1
22.9
16.5
14.9
10.3
Basic EPS
27
ABB INTEGRATED REPORT 2024
Introduction
Value creation
Outputs and Outcomes
Good governance
Performance-based compensation
Appendix

5–7% average	
Comparable revenue growth  
through economic cycle
Excluding FX impacts,  
acquisitions and divestments
16–19%
Operational EBITA margin
(annual)
Po|ojktj
vuroi
rising sustainable dividend  
per share over time
~100%
FCF conversion to net income 
(annual)
Mzrkgyznomn 
yotmrkjomozE
EPS growth through economic cycle
(Basic EPS)
1–2% average
Acquired revenue growth  
through the economic cycle
Target is the net of acquisitions  
and divestments
>18%
ROCE (annual)
Excluding transformational deals
149,9.4,7?,=20?>
28
ABB INTEGRATED REPORT 2024
Introduction
Value creation
Outputs and Outcomes
Good governance
Performance-based compensation
Appendix

5. Rewarding shareholders
The creation of sustainable long-term share-
holder value is a key priority. Our compensation 
programs and policies are designed to encour-
age performance improvement without taking 
excessive risks. The company’s share ownership 
requirements for Executive Committee mem-
bers are aligned with market practice and result 
in wealth at risk for each Executive Committee 
member which is aligned with shareholder 
interests. Our strong balance sheet and cash 
generation provides the capacity and flexibility 
for both solid cash distribution while still ensur-
ing the financial strength to invest in organic 
and acquired growth. We are committed to a 
sustainable rising dividend per share over time. 
Additionally, our capital allocation priorities 
state that we distribute any excess cash to our 
shareholders via buybacks.
In 2024, ABB invested $845 million in capi-
tal expenditures (CapEx). Non-order related 
R&D investment was $1,469 million in 2024 or 
4.5 percent of revenues for the year. The 2023 
declared dividend amounted to $1,804 million. 
With respect to the year ended December 31, 
2024, ABB’s Board of Directors has proposed 
to distribute a dividend to shareholders in the 
amount of CHF 0.90 per share. This is subject to 
approval by shareholders at the Annual General 
Meeting on March 27, 2025. The proposal is in 
line with our dividend policy to pay a rising, sus-
tainable dividend per share over time.
In April 2024, we launched a new share buyback 
program of up to $1 billion that ran until the end 
of January 2025. Together with the prior share 
buyback program, which ran from April 2023 
to March 2024, we repurchased a combined 
value of $1.0 billion during the year 2024. ABB 
announced a new share buyback on January 30, 
2025, as we plan to continue our share buybacks 
for the full-year 2025 in line with our capital allo-
cation priorities. 
1.	2024 dividend per  
share of CHF 0.90 is 
proposed by the Board 
of Directors and sub-
ject to approval by 
shareholders at the 
Annual General Meeting 
on March 27, 2025.
2.	Calculated based on 
the share price at 
December 31.
CHF
%
0,6
0,8
1,0
DIVIDENDS AND SHARE BUYBACKS
2015–2024
Dividend per share (DPS)¹
Dividend yield²
0
1
2
3
4
5
2024
2023
2022
2021
2020
2019
2018
2017
2016
2015
>$30 billion cash returned to

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Capital Allocation Priorities:
1. Fund organic growth, R&D, CapEx at attractive returns
2. Rising, sustainable dividend per share over time
3. Value-creating acquisitions
4.Returning additional cash to shareholders via share buybacks
$17 billion dividend
$13 billion buybacks
29
ABB INTEGRATED REPORT 2024
Introduction
Value creation
Outputs and Outcomes
Good governance
Performance-based compensation
Appendix

MNNyngxkvkxluxsgtik
In 2024, the price of ABB Ltd shares listed on the 
SIX Swiss Exchange (SIX) increased 32 percent, 
while the Swiss Market Index (SMI) increased 
4 percent. The price of ABB Ltd shares on the 
Nasdaq Stockholm increased 34 percent, com-
pared to the OMX Stockholm 30 Index, which 
increased 4 percent. Total shareholder return 
(including dividends) of ABB Ltd shares listed at 
SIX was 35 percent during 2024.
On May 23, 2023, ABB delisted its American 
Depositary Receipts (ADRs) from the New 
York Stock Exchange. In the period between 
June 1, 2023, and May 31, 2024, the 12-month 
US Average Daily Trading Volume (ADTV) in 
ABB’s ADRs fell below 5 percent of the ADTV 
worldwide. As a result, ABB met the require-
ments to apply to deregister and terminate the 
reporting obligations for its debt and equity 
instruments under the U.S. Securities Exchange 
Act of 1934, as amended. ABB voluntarily filed 
to immediately suspend its reporting obliga-
tions under the U.S. Exchange Act with the SEC 
Form 15F. Filed on June 10, 2024, this became 
effective in September 2024. ABB continues to 
comply with its financial reporting and other 
obligations pursuant to applicable stock ex-
change listing rules – in particular the Listing 
Rules of SIX Swiss Exchange and the Nasdaq 
Stockholm Rulebook.
In 2024, approximately 28 percent, 26 percent, 
25 percent of shares issued were held in the 
United States, Switzerland and Sweden, respec-
tively. The ten largest individual shareholders 
accounted for approximately 41 percent of the 
share capital on the same date. On December 31, 
2024, 77 percent of the shareholder base was 
made up of institutional investors with retail 
investors reaching 19 percent. On December 
31, 2024, members of the Group Executive 
Committee owned a total of 611,418 shares in 
ABB. Members of the Board of Directors owned 
a total of 562,303 shares in ABB. Total owner-
ship of ABB shares held by the Group Executive 
Committee and the Board of Directors corre-
sponds to less than 1 percent of the capital and 
voting rights.
60D/,?,
FY 2024 
FY 2023
FY 2022
Dividend per share (CHF) 
0.90O
0.87
0.84
Votes per share
1
1
1
Basic earnings per share (USD)P
2.13
2.02
1.3
Total ABB stockholders’ equity per share (USD)Q
7.88
7.28
6.85
Dividend payout ratio (%)R
47%
!
#
Weighted-average number of shares outstanding (in millions)
1,844
1,855
1,899
1.	 Proposed by the Board of Directors and subject to approval by shareholders at the Annual General Meeting on March 27, 2025.
2.	 Calculation based on weighted-average number of shares outstanding.
3.	 Calculation based on the number of shares outstanding at December 31, 2024.
4.	 Dividend per share (converted to US dollars at year-end exchange rates) divided by basic earnings per share.
30
ABB INTEGRATED REPORT 2024
Introduction
Value creation
Outputs and Outcomes
Good governance
Performance-based compensation
Appendix

DISTRIBUTION OF SHAREHOLDINGS
BY COUNTRY
BREAKDOWN OF SHAREHOLDERS BY TYPE
28%
United States
26%
Switzerland
25%
Sweden
9%
UK & Ireland
8%
Continental Europe
3%
Rest of World
77%
Institutional investors
19%
Retail positions
3%
Miscellaneous
1%
Company-related holders
Zurich
Average daily traded number of shares: 2.85 million
STOCKHOLM
Average daily traded number of shares: 0.57 million
Source: FactSet.
Source: Company data
ABB
Swiss Market Index Rebased
ABB
OMX Stockholm 30 Index Rebased
 
24
26
28
30
32
34
36
38
40
42
44
46
48
50
52
54
Jan 2024
Feb 2024
Mar 2024
Apr 2024
May 2024
Jun 2024
Jul 2024
Aug 2024
Sep 2024
Oct 2024
Nov 2024
Dec 2024
240
280
320
360
400
440
480
520
560
600
640
680
Jan 2024
Feb 2024
Mar 2024
Apr 2024
May 2024
Jun 2024
Jul 2024
Aug 2024
Sep 2024
Oct 2024
Nov 2024
Dec 2024
Low:
35.28
High: 52.12
Year end:
49.07
Low:
424.00
High: 647.00
Year end:
595.4
CHF
SEK
31
ABB INTEGRATED REPORT 2024
Introduction
Value creation
Outputs and Outcomes
Good governance
Performance-based compensation
Appendix

02
A,7@0.=0,?4:9
33	
Our value creation model
36	
Our strategic direction
38	
Our business environment
42	
Our inputs for value creation
44	
ABB Way
47	
Risks and opportunities

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We create value for our stakeholders through our technology 
leadership in electrification and automation, building on our 
decentralized operating model to enable a more sustainable and 
­resource-efficient future. 
In everything we do, we strive to consider how 
ABB impacts and is impacted by our stakehold-
ers and the business environment. We define 
value creation as the transformation of our 
inputs into outputs and outcomes that fulfill 
our purpose of enabling a more sustainable and 
resource-efficient future. We collaborate closely 
with our stakeholders across ABB’s value chain 
and consider megatrends that shape our busi-
ness environment in order to:
•	 create value through world-class technology;
•	 deliver leading financial performance;
•	 enable a low-carbon society;
•	 preserve resources;
•	 promote social progress; and
•	 embed a culture of integrity and transparency.
To measure the success of our value creation, we 
leverage a broad set of qualitative and quantita-
tive key performance indicators (KPIs) of which 
a subset is included in the illustration of our 
value creation model. Moreover, in the following 
chapters we report in more detail on our value 
creation inputs and how we turn them into out-
puts, as well as on the business environment in 
which we operate.
33
Introduction
Value creation
Outputs and Outcomes
Good governance
Performance-based compensation
Appendix

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We deliver leading financial performance
•	Comparable revenue growth: 5–7%
•	Operational EBITA margin: 16–19%
•	ROCE: >18%
•	
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•	EPS: At least high single-digit growth
•	3% comparable revenue growth
•	18.1% operational EBITA margin
•	22.9% ROCE
•	100% FCF conversion to net income
•	$2.13 basic EPS, +6% year-on-year
We create value through world-class technology
•	Invest to maintain market-leading technology in 
electrification and automation through organic and 
inorganic investments
•	Orders from products that are digital or digitally enabled: ~60%Q
•	Priority patents, utility models and design applications filed: >750
We enable a low-carbon society
•	Reduce scope 1+2 GHG emissions by at least 80% by 2030 
vs 2019
•	Reduce scope 3 GHG emissions by 25% by 2030 vs 2022
•	Ambition to help our customers avoid emissions through-
out the lifetime of products sold between 2022 and 2030
•	78% reduction of scope 1+2 GHG emissions since 2019
•	8%R reduction of scope 3 GHG emissions since 2022
•	66 Mt GHG emissions avoided through products sold in 2024
We preserve resources
•	Send zero waste to landfill while reducing waste generation 
by 2030
•	Cover at least 80% of products and solutions with our 
Circularity Approach by 2030W
•	5.8% of total waste sent to landfill
•	Circularity score to be calculated after assessing a representative 
portfolio share (currently 41% assessed)ON
We promote social progress
•	Achieve a top-tier employee engagement score
•	Increase proportion of women in senior management rolesS 
to 25% by 2030
•	Expand programs for community engagement
•	Gradual reduction in LTIFROO
•	78/100 employee engagement score
•	21.3% women in senior management roles
•	$9 mn donated and ~6,105 person-days volunteered
•	0.15 lost-time injury frequency rate
We embed a culture of integrity and transparency
•	We aim to embed a culture of integrity and transparency 
across the value chain
•	Trust KPIT: 55% of reportersU
•	Engagement KPIV: 82% of employees with online accessU
Financial 
•	Total stockholders’ equity: $15,060 mn
•	Total liabilities: $25,297 mn
Intellectual 
•	Percentage of R&D employees in software 
development: >50%
•	R&D spend: 4.5% of revenues
•	Number of new venture-capital investments:  
9 and 8 follow-on investments
Natural
•	Energy consumption: 1,292 GWh (95% of electricity 
consumption come from renewable energy sources)
•	Total water consumption in areas at water risk incl. 
high-water stress areas: 283,123 m³
Manufactured 
•	Book value of property, plants and equipment: $4,177 mn
•	Number of manufacturing sites: >170 (number of 
countries with manufacturing sites: >40)
•	Share of local-for-local productionO:  
~95% Europe, ~85% China, ~75% USA
Human
•	Diverse workforce: 112,769 employees representing 
174 nationalities as of December 31, 2024
•	Average hours of training per year and employeeP: 8.4
•	Safety observation tours (SOT) rate: 5.4
Social and relationship
•	Customer base evenly distributed among the 
three regions
•	Numerous partnerships with universities and 
research institutions
>?=,?024.
DIRECTION
1.	 Management estimate based on 
FY2023 revenues.
2.	 Includes tools such as My 
learning, Harvard Spark, 
Harvard Manager Mentor and 
LinkedIn Learning and cov-
ers both leadership and func-
tional/technical learnings, for 
internal employees.
3.	 Management estimate based on 
2023 orders.
4.	 In 2023, we published a “repre-
sentative scenario” and a “strict 
scenario”. Going forward, we 
report the strict scenario as the 
basis for our scope 3 emissions, 
taking a more conservative 
­approach based on full energy 
input for certain products.
5.	 At ABB, senior managers are 
defined as employees in Hay 
grades 1–7.
6.	 Rate of severity level 1 and 2 
investigations where the re-
porter disclosed their identity, 
as a measure of trust in the re-
porting system and integrity 
program.
7.	 Year 1, 2, 3 and 4 (January 1, 
2021, to December 31, 2024). 
Management estimate.
8.	 Volume of unique visitors on the 
Integrity Awareness Portal for 
integrity learnings.
9.	 Based on revenues from hard-
ware-based products and solu-
tions, where granularity of fi-
nancial systems allows. Service 
revenues are excluded.
10.	The circularity score of the as-
sessed products and solutions 
is to be calculated once a repre-
sentative share of the portfolio 
has been assessed.
11.	 Zero harm to our people and 
contractors – we aim for a 
gradual reduction in lost time 
from incidents.
•	Customers
•	Employees
•	Governments and civil 
society including NGOs
•	Investment community
•	Partnerships
•	Suppliers
•	Energy transition
•	Demographic shifts
•	Geopolitical fragmentation
•	Digitalization and AI
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•	Decentralized setup
•	Performance management
•	Capital allocation
•	Portfolio management
•	Positioning
•	Reputation
•	Values
•	People
•	Leadership
•	Code of Conduct
•	Internal control & compliance
•	Risk management
•	Policies and procedures
ABB
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creation model.
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ABB’s strategic direction builds on our purpose 
and guides our 19 divisions in collectively cre-
ating superior value for all our stakeholders. 
While we operate in a decentralized set-up, our 
strategic direction enables us to harness the 
right inputs and efficiently transform them 
into outputs aligned to our shared objectives 
and targets.
Our lean and effective corporate functions at 
Group level set the frameworks for financial and 
sustainability performance, capital allocation, 
portfolio management, people and culture, 
governance, and brand that inform our strategic 
direction and help us embed sustainability in 
­everything we do. Our divisions – as the highest 
operating level at ABB – have full ownership and 
accountability for their strategies, performance, 
and resources. They are expected to take stra-
tegic and operational decisions in line with our 
long-term ambitions:
•	 Striving for market leadership across our 
respective market segments and enhancing 
our technology and digital leadership through 
software-enabled products and solutions and 
stand-alone software and digital services.
•	 Retaining innovation leadership by investing 
in R&D, scouting for new technologies, and 
­collaborating with customers, promising 
start-ups, universities and industry leaders.
•	 Actively managing our portfolio to ­future-proof 
ABB by securing exposure to strong long-term 
market trends. This includes organic growth 
and portfolio adjustments, as well as adding 
technology and geographical footprint.
•	 Embedding sustainability in all our processes 
and across our value chain.
By actively pursuing these long-term ambitions, 
our divisions are able to strengthen our lead-
ership in electrification and automation. Our 
products and solutions position ABB as a key 
player in accelerating the energy transition for 
a net-zero future by optimizing, electrifying and 
decarbonizing industry, buildings, power, and 
transport – sectors that together account for 
over 80 percentO of global energy-related emis-
sions. Our purpose and commitment to enable a 
more sustainable and resource-efficient future 
is also reflected in our Sustainability Agenda, 
which outlines ambitious targets across the 
three pillars “enabling a low-carbon society”, 
“preserving resources” and “promoting social 
progress” and is underpinned by our commit-
ment to embed a culture of integrity and trans-
parency along our extended value chain.
In line with our decentralized operating model, 
our divisions are expected to pursue our stra-
tegic direction, deliver on our long-term ambi-
tions and, consequently, are also accountable 
for their sustainability performance. Our busi-
ness areas and divisions work closely with our 
customers to deliver on the three pillars of our 
Sustainability Agenda, and to contribute to the 
United Nations’ Sustainable Development Goals 
(SDGs). Through a close exchange with our key 
stakeholders, we identified four SDGs where we 
create the greatest impact.
1.	International Energy 
Agency, IPCC Sixth 
Assessment Report, 
McKinsey Charting 
the global energy 
landscape to 2050: 
Emissions
36
ABB INTEGRATED REPORT 2024
Introduction
Value creation
Outputs and Outcomes
Good governance
Performance-based compensation
Appendix

ABB supports the Sustainable Development Goals
ABB enables access to affordable 
and sustainable energy through 
our portfolio of electrification, 
automation and energy-efficient 
solutions.
ABB contributes to decent work 
and economic growth by provid-
ing safe and fair employment, 
paying taxes and supporting 
local communities.
ABB’s innovative technologies 
actively contribute to sustainable 
industrialization and give us, our 
business partners and our cus-
tomers the ability to move, work 
and live more sustainably.
By reducing our own GHG emis-
sions, empowering customers to 
avoid emissions and integrate re-
newables, and working with sup-
pliers and partners to reduce 
their carbon footprints, ABB is 
enabling decarbonization and 
climate action.
Ensure access to 
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While ABB contributes most to these four SDGs, we recognize the importance of the other SDGs and 
aspire to contribute to their achievement whenever and wherever possible.
37
ABB INTEGRATED REPORT 2024
Introduction
Value creation
Outputs and Outcomes
Good governance
Performance-based compensation
Appendix

You are here 
in the value 
creation model.
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At ABB, we continuously monitor risks and op-
portunities to identify key factors that could 
affect our business, growth, and strategy. Our 
broad industrial exposure across many sec-
tors provides stability, allowing us to better 
weather market fluctuations. Risk management 
is embedded within our 19 divisions, which are 
closest to our customers and are thereby able 
to act with agility to emerging opportunities 
and risks. Through structured risk assessments 
and proactive reviews, we anticipate change, 
adapt quickly, and capitalize on new trends. This 
approach helps us mitigate potential threats 
and seize opportunities, ensuring resilience and 
driving sustainable growth.
802,?=09/>
Megatrends are long-term shifts in demo-
graphics, technology, the economy, and the 
environment; they redefine how people live and 
work. At ABB, we are positioned at the core of 
key megatrends such as the energy transition 
­towards electricity as a key energy source, 
energy efficiency, decarbonization of heavy 
industries, demographic shifts in labor supply, 
geopolitical fragmentation, and digitalization 
and AI. These align directly with our purpose 
to drive sustainability and resource efficiency 
through our customer offerings in electrifica-
tion and automation. By staying focused and 
executing effectively on our purpose, we are 
well positioned to capitalize on these trends and 
deliver long-term value to our stakeholders.
The energy transition
The demand for electricity is expected to more 
than double by 2050¹, driven by the electrifi-
cation of transport, industry and buildings. 
Electrification will be essential for achieving 
net-zero emissions and is expected to contrib-
ute over 50 percent of the required emissions 
reductions by enabling a shift from fossil fuels 
to renewable energy sources. Power generation, 
industry, transport, and buildings account for 
95 percentP of global greenhouse gas emissions, 
and these four segments represent 98 percent³ 
of ABB’s revenues. Our technologies play a key 
role in supporting the energy transition, help-
ing us contribute to progress and innovation in 
these essential sectors.
1. Investment in electrical infrastructure
Today’s electricity grids face challenges in 
meeting growing energy demand while also 
enabling a transition to cleaner sources. The 
grid, originally designed for steady fossil fuel 
generation, requires upgrades in technology, 
energy storage and smarter management to 
handle the decentralized nature of renewable 
power generation.
In the US, aging infrastructure struggles to keep 
up with the increasing integration of renewable 
energy, leading to grid reliability concerns and 
hence the need for modernization. Europe faces 
the challenge of balancing energy security with 
its ambitious decarbonization goals, requiring 
coordinated investments in grid resilience and 
cross-border energy networks. Meanwhile, 
China is focused on rapidly expanding its grid 
to support urbanization and industrial growth 
while transitioning from coal to cleaner energy 
sources. Similarly, India is focused on increasing 
grid capacity and securing access even across 
its most remote regions. Each region faces 
unique hurdles, but all are working to adapt 
their grids to support the energy transition and 
grid resilience.
ABB’s technologies in electrification, automa-
tion and digitalization enable a smarter, more 
flexible energy network. With approximately 
13 percentQ of our offerings directly tied to 
power generation, distribution and renewable 
energy, we are well positioned to support these 
investments and upgrades to the current infra-
structure, delivering on our purpose to enable a 
more sustainable future.
2. Decarbonization of industries
Industry accounts for approximately 25 percent² 
of global greenhouse gas (GHG) emissions. 
Today, policy changes, strong corporate com-
mitments and market pressures are driving the 

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businesses worldwide have committed to the 
Science-Based Targets initiative (SBTi), pledg-
ing to decarbonize their operations and value 
chains, carbon pricing mechanisms are also 
expected to increase the pressure on industries 
to accelerate their efforts. As of today, already 

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carbon pricing mechanisms, including carbon 
taxes and emissions trading systems (ETS), 
1.	McKinsey & Company 
report: Global Energy 
Perspective 2024.
2.	International 
Energy Agency.
3.	Management estimate.
4.	Science based 
­targets: companies 
taking action.
5.	World Bank State 
and Trends of Carbon 
Pricing Dashboard.
6.	McKinsey report: 
Risk, resilience, and 
­rebalancing in global 
value chains.
7.	Management es-
timate based on 
FY2023 revenues.
38
ABB INTEGRATED REPORT 2024
Introduction
Value creation
Outputs and Outcomes
Good governance
Performance-based compensation
Appendix

45%
of the world's electricity is
converted by industrial
electric motors into motion
We stand for productivity in a low-carbon world, so we innovate to
contribute to energy efficient, decarbonizing and circular solutions
for customers, industries and societies
The combination of
high efficiency motors 
and drives can help 
reduce total global 
electricity consumption 
by up to 10%
$515 bn
$343 bn
+141%
increase in avg. 
annual 
investments
Low carbon energy
Energy efficiency
+53%
increase in 
avg. annual 
investments
$1,241 bn
$526 bn
2016–2023
2024–2030
<25% of the world's 
electric motors are 
controlled by drives
A drive can typically 
reduce power 
consumption by 25%¹
Demand for electric 
motion to double 
by 2040
covering about 24 percent? of global emissions. 
As carbon prices continue to rise and carbon 
pricing mechanisms expand in scope to cover 
more sectors, industries are increasingly incen-
tivized to reduce emissions and, hence, limit the 
impact of purchasing carbon permits on their 
operating costs.
The transformation and decarbonization of 
heavy industry requires a multifaceted ap-
proach that spans electrification, automation 
and digitalization: when replacing gas and 
diesel-powered turbines with electric motors, 
innovation enables a reduction in emissions 
but also enhances flexibility and efficiency. 
With more than halfQ of our customer offering 
linked to the electrification and automation 
of industry, this is where ABB excels. Our tech-
nologies help optimize production processes, 
electrify industrial machinery and increase the 
energy efficiency of motor-driven applications, 
supporting our effort to help heavy industries 
transition to cleaner energy solutions using 
advanced technologies.
3. Energy efficiency
With rising energy demand and stricter reg-
ulations, such as minimum energy efficiency 
requirements for industrial motors sold in 
both the US and the EU, improving energy ef-
ficiency is now a key driver for both economic 
and environmental progress. According to the 
International Energy Agency (IEA), energy effi-
ciency measures could contribute around one 
third² of the emissions reductions needed by 
2030, making efficiency gains an essential com-
ponent of the global push to reach net zero.
At ABB, we are not only committed to net zero 
ourselves, but also to helping our customers 
with roughly 35 percentQ of our offering linked 
to energy efficiency and emissions reductions. 
Our energy-efficient solutions – such as vari-
able speed drives, high-efficiency motors and 
energy management systems – are designed to 
optimize energy use, reduce waste and improve 
operational performance across industries. 
We enable customers to lower their energy 
consumption, reduce costs and shrink their 
carbon footprint.
1.	Management estimate.
39
ABB INTEGRATED REPORT 2024
Introduction
Value creation
Outputs and Outcomes
Good governance
Performance-based compensation
Appendix

Share of working age population 
(15–64) in selected countries/regions
Unit labor cost index (LCU, 2010 = 100) 
in selected countries/regions
Cost of manufacturing labor
(2012–2021, indexed to 2012)
100
100
100
100
192
277
141
146
135
158
124
+14%
+18%
+3%
+44%
140
50
52
54
56
58
60
62
64
66
68
70
72
74
2050
2040
2030
2020
2010
1.0
1.1
1.2
1.3
1.4
1.5
1.6
1.7
1.8
1.9
2.0
2.1
2.2
2.3
2020
2018
2016
2014
2012
India
China
United
States
EU top 41
%
2010
2023
2030
China
India
Europe
United States
China
United States
Demographic shifts in labor supply and 
urbanization
Demographic shifts are creating challenges 
for our customers across geographies. In many 
countries, populations are aging and hence their 
workforces are shrinking. Here, automation is 
becoming essential for continued economic 
growth and pushing companies to increasingly 
deploy automation, robotics and AI-driven soft-
ware to maintain efficiency and productivity. 
At ABB we have leading technologies such as 
PLCs, our mechatronics platform including 
our expanded collaborative robots range, the 
OmniCore™ controller, and our broad autono-
mous mobile robot (AMR) portfolio with unique 
AI embedded capabilities such as vision, which 
allows us to create automation solutions across 
segments, including newer fields such as health-
care and construction.
Urbanization and increased consumption put 
pressure on infrastructure and resources, re-
quiring significant investments in areas like 
energy security, clean water, reliable transpor-
tation, high-speed data and modern buildings. 
ABB’s solutions in Electrification, Motion and 
Process Automation are central to addressing 
these needs.
Geopolitical fragmentation
Regionalization and localization are emerging 
as significant global trends, putting supply 
chains and operational footprint reviews high 
on corporate agendas. 93 percentT of supply 
chain leaders are planning to increase resilience, 
with many considering shifting production 
closer to key markets. For companies to adapt, 
investing in advanced technologies like AI, au-
tomation, and smart manufacturing is crucial. 
By embracing these innovations, businesses 
can reduce costs, enhance productivity and stay 
competitive in a more regionally oriented, global 
economy. For ABB, this means that as our cus-
tomers are investing in a more resilient, flexible 
and smarter footprint, we are there to support 
them with our localized offering of products 
and solutions.
At ABB, we have a strong tradition of lo-
cal-for-local manufacturing, enabling us to 
stay close to our customers. Approximately 
95 percentU of our products and solutions sold 
in Europe, 85 percentU of those in sold in China 
and 75 percentU of those sold in the United 
States are produced locally. Although a global 
company, we also take a local approach to 
our offering, localizing R&D and tailoring our 
1.	EU top 4 = Germany, France, Italy, Spain 
Source: UN Population Prospects 2024, S&P Global
40
ABB INTEGRATED REPORT 2024
Introduction
Value creation
Outputs and Outcomes
Good governance
Performance-based compensation
Appendix

You are here 
in the value 
creation model.
product portfolio to the local market, where 
conditions allow.
Digitalization and AI
Digitalization and AI are transforming industrial 
manufacturing, logistics, building manage-
ment, and many other sectors, by integrating 
data-driven tools directly into production 
processes. At ABB, we have digitally enabled 
approximately 60 percent of our products and 
services to enhance our ability to deliver greater 
efficiency and value to customers. For exam-
ple, with the use of sensors and IoT devices we 
gather ­real-time data from machinery, produc-
tion lines, and entire factories. This data then 
allows our customers to monitor operations, 
improve workflows, and address maintenance 
needs proactively. With AI, factories can au-
tomate processes that once required manual 
oversight, like quality control, where AI systems 
analyze data to detect defects more accurately 
and quickly.
AI also enables predictive maintenance, where 
algorithms detect patterns in equipment data 
to anticipate potential failures, preventing 
costly downtimes. Moreover, robotics pow-
ered by AI now handle increasingly complex 
tasks, speeding up production and improving 
accuracy. This shift enables manufacturers to 
become more flexible and respond quickly to 
changes in demand.
As digitalization and AI adoption is increas-
ing across not only industry but all parts of 
our economy, demand in data centers is also 
rising and expected to grow at double-digit 
rates through 2030. This surge in demand is 
speeding up the move to more energy-effi-
cient and scalable data centers to support 
the growing data needs for agile, data-driven 
operations across different sectors. Moreover, 
­particularly AI-driven data centers require not 
only ­mission-critical power access but also 
significantly more power, further leading to an 
increased demand in medium-voltage solutions. 
As a leader in medium-voltage solutions, ABB 
offers a robust portfolio for the data center 
market, addressing customers’ challenges 
regarding growing power needs, direct grid ac-
cess needs and mission-critical power access.
:@=>?,603:7/0=>
We aim to build trust and foster long-term re-
sponsible business practices and relationships 
with our key stakeholders, including custom-
ers, employees, governments and civil society 
including NGOs, the investment community, 
partnerships and suppliers. These stakeholders 
shape our business environment and influence 
the way ABB operates; they are also impacted by 
what we do and the value we create. Their voices 
provide a unique perspective on market trends, 
innovations and technologies and help us better 
understand how they shape different industries 
and geographies. Engaging with our key stake-
holders therefore also plays an important role in 
defining ABB’s strategic direction and steering 
our business. The chapter “Engaging stakehold-
ers” of the Sustainability Statement 2024 pro-
vides further detail on our key stakeholders and 
how we engage with them.
41
ABB INTEGRATED REPORT 2024
Introduction
Value creation
Outputs and Outcomes
Good governance
Performance-based compensation
Appendix

You are here 
in the value 
creation model.
[{xotv{zylux
|gr{kixkgzout
To deliver on our purpose and create long-term value for our 
stakeholders, ABB relies on financial, intellectual, natural, 
manufactured, human and social and relationship inputs. 
Both tangible and intangible inputs across these categories 
are used with care and considered fundamental to creating 
sustainable financial and non-financial value. 
ABB invests in value creation based on a strong 
understanding of our different stakeholders’ 
needs and intersecting interests. By balancing 
the use of our inputs and ensuring they are 
complementary, we are able to build on the full 
potential of our inputs and amplify both our 
financial outputs and our contributions to a sus-
tainable society. Hiring and continuously invest-
ing in our diverse workforce helps us innovate 
and develop new products and solutions for 
our customers. By reinforcing and continuously 
strengthening this technology leadership, we 
are able to deliver sustainable growth, reinvest-
ing an increasing share of revenues into R&D, 
training and other targeted initiatives that help 
us sustain our competitive advantages, continu-
ing our cycle of superior value creation.
Introduction
Value creation
Outputs and Outcomes
Good governance
Performance-based compensation
Appendix

Financial input
ABB’s financial inputs enable us to continuously 
invest in intellectual, natural, manufactured, 
human, and social and relationship inputs. By 
relentlessly focusing on delivering a strong op-
erational performance and net working capital 
efficiency, we continuously improve cash flow 
delivery and, hence, are able to invest in growth. 
Our positive cash flow enables us to capitalize 
on key megatrends through our products and 
solutions, inorganic growth, partnerships, effi-
cient operations and state-of-the-art facilities.
 
Intellectual input
Building on 140 years of engineering know-how, 
we invest an increasing share of revenues in 
both R&D and technology ventures to support 
the development of cutting-edge technology. 
Leveraging the collective knowledge of our em-
ployees and their drive to innovate close to our 
customers gives ABB a competitive advantage 
that is not fully recognized on the balance sheet. 
This also includes the more than 250 projects 
running related to Artificial Intelligence (AI), 
covering innovations across our advanced soft-
ware and digital offering. Our innovations and 
intellectual property are a key differentiator and 
enable us to create superior value for our cus-
tomers by optimizing, electrifying and decar-
bonizing their operations.
 
Natural input
Natural resources, energy and materials are 
crucial inputs to run our business and provide 
products and solutions to our customers. With 
sustainability and resource efficiency core to 
our purpose, we strive to produce and deliver 
our offering in the most resource efficient and 
sustainable way. This includes, for example, our 
continuous efforts to switch to renewable en-
ergy sources and reduce our water withdrawal 
particularly in areas at water risk, including 
areas of high-water stress. We also reduce 
emissions across our own sites, a journey accel-
erated through our Mission to Zero™ program 
launched in 2019. Across 21 sites currently part 
of the program, we use innovative and ambi-
tious measures to help our sites achieve Mission 
to Zero™ status. An important focus also lies 
on our supply chain and purchase of materials, 
which contribute towards the environmental 
footprint of our products across their life cycle.
Manufactured input
Manufactured inputs include the tools, ma-
chines, plants, infrastructure and buildings that 
we need to produce our products and provide 
our services. As of December 31, 2024, net 
property, plant and equipment amounted to 
$4,177 million, which was primarily invested in 
our approximately 170 manufacturing sites in 
over 40 countries. Our focus on “global reach 
with local presence” allows us to quickly scale 
innovations across our markets. Moreover, our 
long tradition of local-for-local manufacturing 
allows us to remain close to customers, exem-
plified by approximately 95, 85 and 75 percentO 
of products and solutions sold in Europe, China 
and the United States, respectively, being pro-
duced locally. We invest approximately $800 mil-
lion annually in capital expenditure (CapEx) to 
ensure that our manufacturing capabilities can 
support our organic growth ambitions and se-
cure our efficient production.
Human input
ABB’s 110,000 employees, representing 174 na-
tionalities, are at the core of our value creation. 
Their health, wellbeing, intellectual engage-
ment, motivation and ability to do their jobs well 
are essential to our ability to create value. Our 
people strategy empowers our employees to un-
derstand and learn the skills needed to progress 
in their careers, to build a meaningful network 
they can lean on for feedback and guidance, and 
to take ownership of their growth and career.  
Social and relationship input
ABB’s relationships with the communities we 
operate in and our stakeholders, including cus-
tomers, civil society, NGOs, employees, govern-
ments, investment community, partnerships, 
and suppliers, provide meaningful input in how 
we run ABB day to day. This means building on 
our large installed base and long-term relation-
ships with end customers and channel partners 
to nurture a deep understanding of customer 
needs and ensure that we provide them with the 
greatest value possible. Moreover, we partner 
with universities and research institutions to 
drive innovation and develop advanced technol-
ogies across disciplines such as materials sci-
ence, software and power electronics.
1.	Management esti-
mate based on  
FY 2023 revenues.
43
ABB INTEGRATED REPORT 2024
Introduction
Value creation
Outputs and Outcomes
Good governance
Performance-based compensation
Appendix

You are here 
in the value 
creation model.
ABB
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ABB Way
In terms of value creation, the ABB Way guides us in transforming 
our inputs into outputs and outcomes and, hence, enables us to 
deliver superior value to our stakeholders. With our purpose at the 
core, the ABB Way defines “how” we work in a decentralized set-up 
to drive best-in-class performance.
The ABB Way is our operating model and what 
ensures that the business is stronger as a group 
than as separate entities. Owned and controlled 
by ABB’s Executive Committee and mandatory 
for everyone across ABB, the ABB Way estab-
lishes a consistent business model, places em-
phasis on our people and ABB’s values, supports 
a strong culture of governance and integrity, 
and enables us to build and protect our brand 
and reputation.
-@>490>>8:/07
ABB’s business model guides us in how we work 
together in a decentralized set-up, drive best-in-
class performance, allocate capital and manage 
our portfolio of 19 divisions. It ensures that all 
divisions not only follow the Group’s strategic 
direction and can contribute to achieving our 
financial and sustainability targets but also pur-
sue opportunities to collaborate to best serve 
our customers.
•	Decentralized setup
•	Performance management
•	Capital allocation
•	Portfolio management
•	Positioning
•	Reputation
•	Values
•	People
•	Leadership
•	Code of Conduct
•	Internal control & compliance
•	Risk management
•	Policies and procedures
?30,--B,D
44
ABB INTEGRATED REPORT 2024
Introduction
Value creation
Outputs and Outcomes
Good governance
Performance-based compensation
Appendix

1–2%
Acquired average growth
through economic cycle
ACQUISITION CRITERIA
Strategic
Fit with ABB’s purpose
• Electrification & automation
• Sustainability & resource-efficiency
• Technology leadership
Business attractiveness
• Market growth and market profitability
• Contribute to ABB’s ability to hold a leading 
market position
• Financial performance of the target
Decentralized set-up
Our divisions are the highest operational level 
at ABB, empowered with full ownership and ac-
countability for their strategies, performance 
and resources. This decentralized set-up en-
ables us to make decisions close to our custom-
ers and to operate with greater accountability, 
transparency and speed. Our divisions are 
organized into and governed by four business 
areas, while our lean corporate functions act 
as the key enabler for the Group, providing the 
frameworks for business, performance, portfo-
lio management, capital allocation, people and 
culture, governance and brand.
Performance management
At ABB, we strive towards continuous improve-
ment and, therefore, build on a systematic and 
transparent performance management frame-
work, covering short-, medium- and long-term.
We translate our strategic, financial and sustain-
ability priorities into distinct targets, which are 
supported by appropriate incentives through 
our Annual Incentive Plan (AIP) and Long-Term 
Incentive Plan (LTIP). Core KPIs included in 
ABB’s financial target framework cover revenue 
growth, operational EBITA margin, Return on 
Capital Employed (ROCE), Free Cash Flow (FCF) 
conversion to net income and Earnings per 
Share (EPS) growth.
Capital allocation
ABB’s stringent capital allocation principles 
have enabled us to maintain a strong invest-
ment grade rating. We focus on funding or-
ganic growth (incl. R&D, CapEx) and paying 
a rising and sustainable dividend per share 
over time. Further, we continue to emphasize 
value-creating acquisitions to increase ABB’s 
exposure to megatrends, fill technology gaps, 
complement or expand our offering in high-
growth segments, gain access to new geog-
raphies, and boost economies of scale. Our 
ambition is to deliver an average 1–2 percent 
annual growth through M&A. Regardless of 
the acquisition size, the target must align with 
ABB’s purpose and we need to demonstrate that 
ABB is a better future owner who can enable 
superior value creation. Lastly, share buybacks 
continue to be part of our long-term capital 
allocation priorities.
Portfolio management
As part of our portfolio assessment framework, 
we review our divisions’ performance and stra-
tegic mandates from a Group perspective. While 
performance is evaluated against both market 
and ABB’s financial and sustainability KPIs, our 
strategic mandates – stability, profitability or 
growth – reflect on a division’s performance and 
translate into strategic priorities, such as de-
livering best-in-class performance and actively 
pursuing organic and inorganic growth oppor-
tunities for divisions on a growth mandate. As 
our strategic mandates have proven a successful 
tool to deliver value for our stakeholders, we 
continue to apply them further down in the or-
ganization, continuing to increase accountabil-
ity, transparency and speed.
45
ABB INTEGRATED REPORT 2024
Introduction
Value creation
Outputs and Outcomes
Good governance
Performance-based compensation
Appendix

STRATEGIC MANDATES
Stability
• Restructure
• Transform offering/
business model
Profitability
• Improve margin/return
• Moderate investment
in growth
• Select technology add-on
acquisitions
Growth
• Growth above market while
keeping high/return level
• Invest strongly in organic
growth (e.g., digital, R&D, 
sales/service, capacity)
• Actively pursue acquisitions: 
including technology additions, 
growth in existing markets 
and penetration of new market 
segments
;0:;70,9/.@7?@=0
Our people and culture are what make the dif-
ference and are the foundation of ABB’s success. 
Building on ABB’s four values – Courage, Care, 
Curiosity and Collaboration – we maintain a 
safe, fair, equitable and inclusive working envi-
ronment in which everyone can succeed and de-
velop. By fostering a “high performance – high 
integrity” culture, our employees are encour-
aged to drive performance by unleashing their 
full potential, always mindful of safety, internal 
controls, adherence to our Code of Conduct and 
our values. To continue to push the boundaries 
of technology and deliver on our purpose, we 
create opportunities for our people to focus on 
development and integrate learning into their 
work, encouraging them to gain new experi-
ences and take the next step in their careers 
within ABB.
GOVERNANCE
ABB’s strong governance framework is designed 
to enable accountability, transparency, speed to 
execute and responsible risk management in our 
decentralized set-up in order to safeguard our 
business, people, assets and reputation from 
potential harm. It secures our license to operate 
through our internal controls, policies and pro-
cedures including our Code of Conduct and is 
the basis to adopt technological developments 
such as artificial intelligence responsibly. The 
Code of Conduct serves as the foundation of 
our commitment to integrity, ethical behavior 
and human rights and guides us in embedding 
integrity throughout our entire value chain.
BRAND
The ABB brand is an expression of our company 
purpose, our values, and long history of innova-
tion. Today, the iconic red ABB logo has become 
a sign of trust, quality and superior value for our 
customers, partners, investors and employees. 
By focusing on delivering on our purpose in 
everything we do, we continue to foster our rep-
utation as a reliable business partner and tech-
nology leader, and to be the preferred choice for 
our stakeholders.
Helping industries outrun
Industries are the beating heart of the modern 
world. They power us; protect us; move and 
connect us; make things for us. Today, how 
industries run is critical. From energy, power 
and mining to building, transport, manufac-
turing, and more – they need to meet global 
demand, be more sustainable, efficient, and 
manage transitions. To them, “running” is no 
longer enough – they need to outperform. Or 
as we say at ABB, they need to “outrun”, leaner 
and cleaner.
With our leading technologies in elec­trification 
and automation, we help industries run at high 
performance and become more productive, 
efficient, and sustainable, enabling them to 
out­perform. At ABB, we call this ‘Engineered 
to Outrun.’
	

2 See ABB’s Code 
of Conduct.
46
ABB INTEGRATED REPORT 2024
Introduction
Value creation
Outputs and Outcomes
Good governance
Performance-based compensation
Appendix

ABB’S ENTERPRISE RISK MANAGEMENT PROCESS
2
Identification
& assessment of risks
3
Risk mitigation planning
& implementation
4
Risk mitigation
effectiveness monitoring
1
Identification of strategic 
business objectives
Risks and opportunities
The proactive and strategic management of risks is an integral part of how we 
do business. Our defined risk management framework enables us to identify and 
assess risks early and ensures that we have appropriate responses to manage and 
mitigate their effects across all levels of ABB. At the same time, we seek to turn 
the risks we face into potential opportunities and strive to manage both risks and 
opportunities in a responsible way. This approach supports the creation and pro-
tection of value for ABB, our stakeholders and society.
09?0=;=4>0=4>6
MANAGEMENT
The enterprise risk management (ERM) process 
is our holistic approach to identifying risks 
which could adversely impact the achievement 
of ABB’s strategic business objectives and lead 
to a material financial impact. The ERM process 
is embedded in our ABB Way operating model 
and encompasses all levels of our organiza-
tion. It provides our leadership, including our 
Executive Committee and the Finance, Audit and 
Compliance Committee (FACC) of the Board of 
Directors, with a comprehensive overview of the 
most critical risks faced by our business.
This intelligence informs our overall strategy 
and risk discussions and allows us to make 
well-informed decisions to safeguard value and 
take calculated risks to create value amidst a dy-
namic societal and business landscape.

The ERM process relies on the ongoing identifi-
cation, assessment, mitigation and monitoring 
of the most critical risks affecting ABB. Our 
detailed methodology starts with the identifica-
tion of our strategic business objectives. Then, 
we identify the most critical risks which could 
prevent us from achieving these objectives and 
lead to a potential material financial impact in 
the next five years.
These risks are then assessed in terms of their 
potential impact, likelihood and speed of occur-
rence. Specific responses to address these risks 
are then planned, implemented and continuously 
monitored to ensure they remain effective. We 
strive to turn risks into opportunities not only to 
minimize their downsides but to create value for 
ABB and our stakeholders, wherever possible.
47
ABB INTEGRATED REPORT 2024
Introduction
Value creation
Outputs and Outcomes
Good governance
Performance-based compensation
Appendix

?:;14A009?0=;=4>0=4>6.7@>?0=>

Top five risk clusters
Examples of reported risks
Examples of risk responses
Cyber security 
incidents
Potential cyber incidents involving ABB or third parties due 
to global increase in sophisticated cyber attacks, AI-powered 
threats, high interconnectivity across the supply chain and 
increasing process digitalization. 
•  Continuous cyber vulnerability scanning and cyber de-
fense tools to identify and prevent cyber attacks.
•  Onboarding of IT assets to global security solutions 
and endpoint detection and response
Geopolitical instability Increased geopolitical tensions globally resulting in trade re-
strictions, protectionism, global technology decoupling, raw 
material price increases and asset damage.
•  Evaluation and monitoring of exposure to and depen-
dency on higher risk geographical markets.
•  Developing alternative supply chains for raw materials 
and dual sourcing strategies for key components.
Integrity behavior 
Potential breach of laws & regulations and ABB’s code of con-
duct resulting in reputational and brand value damage, trade 
sanctions, regulatory fines and penalties, and economic loss.
•  Group-wide integrity training & awareness campaign and 
continuous improvement of internal control framework.
•  Integrity risk testing and consequence 
management implementation.
Intensified 
competition
Competitors’ targeted growth strategies, strengthened ca-
pabilities, and competitive pricing, combined with increased 
traction from local market players and disruptive technolo-
gies influencing the landscape.
•  Review of portfolio strategy and price positioning in 
key markets and reinforcement of sales capability in 
growing segments.
•  Continuous monitoring of market developments and 
further advance region-specific product strategies.
Legal and regulatory 
changes
An ever-changing regulatory landscape across multiple com-
plex topics leading to potential restrictions on trade and 
challenges in meeting compliance.
•  Proactive assessment of potential upcoming regula-
tory changes and dedicated teams to manage complex 
compliance requirements.	
The ERM process at ABB categorizes risks as 
strategic, financial or operational:
1. Strategic:
Strategic risks can relate to any of the fol-
lowing: macroeconomic factors; market and 
technological developments; competitor and 
industry shifts; environmental, social and gov-
ernance aspects; geopolitical developments; 
­and/or portfolio management topics. These 
­factors can have both negative and positive 
impacts on our business and create significant 
business opportunities.
2. Operational:
Operational risks can relate to any of the fol-
lowing: engineering, manufacturing, project 
management and productivity topics; health, 
safety and environment management; integ-
rity and compliance aspects; supply chain 
management; cyber and information security 
threats; and/or talent attraction and retention. 
These factors can have adverse impacts on 
the day-to-day operations of our business as 
well as positive impacts by being sources of 
competitive advantage.
3. Financial:
Financial risks can relate to any of the following: 
risks arising from ABB’s international financial 
activities; fluctuations in currency or interest 
rates; volatility in commodity prices; accounting 
and financial reporting requirements; financial 
planning, analysis and management aspects; 
and/or compliance with tax obligations. These 
factors are key to ensuring ABB has appropriate 
finance structures in place and that all financial 
compliance requirements enabling us to meet 
our capital needs are met.
Below are the top five enterprise risk clusters 
facing ABB over the next five years as identified 
in the 2024 ERM process from across ABB.
Our opportunities often arise in the same areas 
as our risks, showcasing how we not only work 
to mitigate risks, but also seek to create value 
for ABB and our stakeholders amid today’s 
global challenges. For example, risks associ-
ated with the demographic shift of labor supply 
forces us to consider how we work smarter 
and more agile which in turn helps us innovate 
across process automation and robotics. Many 
of our offerings are also part of the solution to 
many of the world’s challenges today, meaning 
the upside is much bigger than the downside. 
ABB’s opportunities lie in strategic product in-
novation that meets customer and societal de-
mands, especially when supporting the world’s 
acceleration of the energy transition and the 
need to electrify. Our aim is to always be at the 
forefront when identifying new opportunities, 
considering the wider economic and societal 
megatrends that shape our environment.
48
ABB INTEGRATED REPORT 2024
Introduction
Value creation
Outputs and Outcomes
Good governance
Performance-based compensation
Appendix

>@>?,49,-474?D=4>6>,9/
:;;:=?@94?40>
In 2024, ABB performed a new Double Materiality 
Assessment (DMA), aligned with the Corporate 
Sustainability Reporting Directive (CSRD) 
and the European Sustainability Reporting 
Standards (ESRS). The result of the DMA pres-
ents ABB’s material sustainability matters from 
an inside-out perspective (positive and/or 
negative impacts), as well as from an outside-in 
perspective (financially material risks and/or 
opportunities). We assess our impacts, risks 
and opportunities, including the responses to 
these, over the short-, medium- and long-term 
time horizons as well as across our full value 
chain. While our actual and potential impacts 
on people, planet and society are specifically 
addressed in the Outputs and Outcomes chap-
ters in this report, these are also connected to 
effects on ABB. A negative impact on people for 
example can often turn into a risk for the com-
pany, and a positive impact contribution may 
result in a business opportunity.

ABB faces several risks and opportunities re-
lated to its material sustainability matters. 
For example, climate change poses risks to 
our infrastructure, operations, and employee 
safety. But acting on climate change provides 
opportunities. Collaboration with governments 
and NGOs aids the transition to a low-carbon 
economy, while innovations in renewable energy 
and efficiency secure our market leadership, 
reputation, and talent attraction, alongside 
reducing carbon footprint and costs through 
diverse energy sourcing. When addressing busi-
ness conduct risks and opportunities, ABB’s 
transparency and ethics build trust, combat 
corruption and limit financial risks. We perform 
rigorous audits and worker safety initiatives to 
manage the health and safety risks for workers 
in our value chain. Finally, ABB is also cognizant 
of risks pertaining to consumers and end-users, 
thereby ensuring that strong safety measures 
and clear usage instructions are present in our 
products. 
	

2 For more informa-
tion on our material 
­impacts, risks and 
opportunities, includ-
ing disclosures on 
climate-related risks 
and opportunities, see 
the ABB Sustainability 
Statement 2024.
49
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Introduction
Value creation
Outputs and Outcomes
Good governance
Performance-based compensation
Appendix

03
:@?;@?>,9/
:@?.:80>
51	
Targets and performance overview
54	
We deliver leading financial performance
65	
We create value through world-class technology
74	
We enable a low-carbon society
83	
We preserve resources
89	
We promote social progress
103	
We embed a culture of integrity and transparency 
along the extended value chain
112	
We help industries outrun – leaner and cleaner: 
case studies 

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We have established a set of short-, mid- and long-term targets, 
supported by appropriate incentives, to manage our performance 
and achieve our strategic priorities. These targets encompass both 
financial performance and progress on sustainability. The table 
­below shows the summary of our progress toward our targets.
We deliver leading financial performance
Targets
2024 Status
Revenue growth
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Operational EBITA margin
"
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18.1%
ROCE (return on capital employed)
à$
22.9%
Free cash flow (FCF) conversion to net income
˛
100%
Basic EPS (earnings per share) growth
at least high single digit %
6%
We enable a low-carbon society
Targets
Baseline (year)P
2024 Status
Reduce own scope 1 and 2 COFe emissions by  

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631 kilotons COFe  
(adjusted for portfolio changes) (2019)
138 kilotons COFe
Reduce scope 3 COF
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429,854 kilotons COFe (2022)
394,952 kilotons COFe
Ambition to avoid 600 megatons COFe emis-
sions throughout lifetime of products sold  
from 2022 to 2030R
n.a.
204 megatons COFe
We preserve resources
Targets
Baseline (year)P
2024 Status

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products and solutions with our Circularity  
Approach by 2030S
n.a.
41% (share of ABB’s products and  
solutions assessed)T
Send zero waste to landfill while reducing  
waste generation by 2030U
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­total waste (adjusted for portfolio changes)
%
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We promote social progress
Targets
Baseline (year)P
2024 Status
Zero harm to our people and contractors –  
we aim for a gradual reduction in lost time from  
incidents (LTIFR) 
0.24 (2019)V
0.15
Increase proportion of women in senior  
management rolesW
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f%
g
21.3%
Achieve a top-tier employee engagement score 71/100 (2019)
78/100
Expand programs for community engagement
n.a.
In 2024, we released an internal guideline to 
formalize the company’s community engagement 
strategy and provide direction on developing 
projects aligned with ABB’s Sustainability Agen-
da & ABB’s Four Focus Areas (4Es) of intervention.
1.	 Calculated to exclude FX impacts and transformational acquisitions and divestments, includes bolt-on acquisitions and divestments within divisions.
2.	 Where baseline applies.
3.	 Strict scenario: Energy input used as the basis for calculations; for further details and explanation see our Sustainability Statement 2024. In 2023, we published a 
“representative scenario” and a “strict scenario”. Going forward, we report the strict scenario as basis for our scope 3 emissions, taking a more conservative ap-
proach based on fully energy input for certain products. 
4.	 This ambition is not part of the committed targets. Avoided emissions 2024 status is cumulative for 2022-2024.
5.	 Based on revenues from hardware-based products and solutions, where granularity of financial systems allows. Service revenues are excluded.
6.	 The circularity score of the assessed products and solutions is to be calculated once a representative share of the portfolio has been assessed.
7.	 Waste from demolition and construction excluded from landfill; not including hazardous waste.
8.	 Baseline 2019 excludes the divested Power Grids business and Turbocharging division.
9.	 At ABB, senior managers are defined as employees in Hay grades 1–7.
51
ABB INTEGRATED REPORT 2024
Introduction
Value creation
Good governance
Performance-based compensation
Appendix
Outputs and Outcomes

We embed a culture of integrity and transparency along the extended value chain

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Global framework for assessing and mitigating 
third-party integrity risks through risk-based 
due diligence and life cycle monitoring.
This target measures the implementation of 
a global framework for assessing third-party 
integrity risks. It is an ongoing and critical 
organization-wide, integrity-based enhance-
ment, which strengthens how we onboard and 
manage the life cycle of our relationships with 
suppliers, sales channels and customers.
Framework established and operational. 
Integrity due diligence and risk management 
enhancements for suppliers (buy-side) and 
sales channels (sell-side) launched globally.
Framework enhanced and implementation 
tested. Comprehensive monitoring and risk 
mitigation guidance developed. 
Focused on the governance of this framework 
to sustain its operation and risk management 
of legacy third-party relationships, both in 
terms of suppliers and sales channels. 
Development of business specific plans to 
monitor and mitigate third-party risks, with fo-
cus on resourcing for sustaining operation.
Global Integrity Program underpinned by ac-
countability for integrity and an adaptive risk 
management strategy gained from insights 
through targeted learnings, transparent re-
porting and monitoring.
This target measures the implementation and 
effectiveness of our Global Integrity Program 
through how we drive individual accountability 
for integrity and adapt our risk management 
strategy to real-time data insights gained 
from integrity-based learnings, reporting 
and monitoring.
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in focus countries covered by SSBM
Linking sustainability targets to executives’ 
variable pay
Under the Annual Incentive Plan (AIP), a safety 
goal was included within the individual mea-
sure for some members of ABB’s Executive 
Committee. The individual measure had a total 

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Executive Committee members and division 
presidents. Vesting under the LTIP was subject 
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1.	 Where baseline applies.
2.	 Current focus countries are Brazil, Bulgaria, China, Egypt, India, Malaysia, Mexico, Saudi Arabia, South Africa, Thailand, Tunisia and Türkiye. 
52
ABB INTEGRATED REPORT 2024
Introduction
Value creation
Good governance
Performance-based compensation
Appendix
Outputs and Outcomes

53
ABB INTEGRATED REPORT 2024
Introduction
Value creation
Good governance
Performance-based compensation
Appendix
Outputs and Outcomes

BJIJQN[JWQJFINSL
˙SFSHNFQUJWKTWRFSHJ
In 2024, we made progress on virtually all headline numbers of 
our income statement driven by benefits from our decentralized 
ABB Way operating model and an overall supportive market environ-
ment. Our operating assets yield high returns, and our continued 
investments enable us to maintain a market leading position with 
world-class technology in electrification and automation – creating 
value for all our stakeholders. 
You are here 
in the value 
creation model.
54
Introduction
Value creation
Good governance
Performance-based compensation
Appendix
Outputs and Outcomes

After a period of transformation, all our busi-
nesses are now aligned with our purpose and 
are well-positioned at the center of key trends, 
such as electricity becoming the primary energy 
source and the increasing need for automation 
and digitalization to remain able to produce. 
We support our customers with high-quality, 
low-carbon solutions and energy efficient offer-
ings, while also helping manufacturing compa-
nies automate for greater resource efficiency. 
This year we saw strong growth in our electrifi-
cation offerings, driven by rapidly increasing de-
mand for electricity, which is expected to grow 
nine times faster than other energy sources 
between 2024 and 2030. This strength more 
than offset weakness in discrete automation. 
Although the fundamental long-term market 
drivers remain intact in this business segment, 
customer activity this year was tempered mainly 
by normalized ordering patterns after a period 
of pre-buys.
The ABB Way operating model is firmly estab-
lished within our organization, supported by 
the fact that our new CEO, Morten Wierod, and 
two new Business area presidents, Giampiero 
Frisio and Brandon Spencer, are internal hires 
with proven track records of successfully man-
aging within this framework. From this strong 
level we see opportunities to deepen the impact 
of the ABB Way by extending it further into the 
business lines. Our goal is to make the ABB Way 
second nature across all teams, incentivizing 
management with clear strategic mandates, 
as well as increasing accountability, transpar-
ency and speed of operations. By applying this 
framework at a more granular level, each divi-
sion can tailor strategies to its specific needs, 
ensuring consistent and focused performance 
organization wide.
Active portfolio management remains a key 
part of our performance culture and is inte-
grated into the responsibilities of divisional 
management teams. While we are committed to 
acquisitions as a growth driver, it is not yet fully 
ingrained in our ways of working and this will 
continue to be a focus area going forward. This 
includes identifying areas for inorganic growth 
through acquisitions related to new segments, 
new market access, better economies of scale 
or filling technology gaps. The divisions also 
assess, based on systematic portfolio reviews, 
whether, ultimately, their division is the best 
owner of their different businesses.
In 2024, we accelerated this activity with bolt-on 
acquisitions and strategic partnerships led by 
our divisions, completing seven acquisitions 
and nine new venture capital investments, as 
well as eight follow-on investments, moving 
us closer to our target range of 1 to 2 percent 
of revenue growth through acquisitions. The 
Service Division in the Electrification Business 
area acquired the SEAM Group, which adds en-
ergy asset management and advisory services 
to clients across industrial and commercial 
building markets while the Process Automation 
business area completed three acquisitions, 
the largest being the acquisition of Födisch 
Group, in the Measurement & Analytics Division. 
The Motion business area also completed the 
integration of two previously announced ac-
quisitions and announced the acquisition of 
the power electronics business of Gamesa 
Electric in Spain from Siemens Gamesa which 
will strengthen ABB’s position in the growing 
market for high-powered renewable power 
conversion technology. Electrification also an-
nounced another sizeable acquisition. We have 
agreed to acquire the Wiring & Accessories 
business of Siemens in China, led by our Smart 
Buildings division, which will expand our market 
reach and enhance our regional customer offer-
ings with a full range of safe and reliable smart 
building technologies.
55
ABB INTEGRATED REPORT 2024
Introduction
Value creation
Good governance
Performance-based compensation
Appendix
Outputs and Outcomes

[xjkxygtjxk|kt{ky
Orders
In 2024, total orders remained stable versus last 
year’s high level (increasing 1 percent compara-
bleO). With electricity increasingly becoming the 
key power source, the Electrification business 
area saw strong order growth across most end 
markets, with particularly high demand from 
data centers and utilities, as well as growth in 
the buildings segment driven by commercial 
buildings, mainly in the United States. Orders in 
the Motion business area decreased 3 percent 
(2 percent comparableO) with customers looking 
to make operations more energy efficient by 
investing in high standards of electrical motors 
and drives, but at the same time held back by 
an overall muted industrial demand. Strong 
performance in the power generation segment 
was offset by declines in heavy, process-related 
industries such as chemical, oil & gas, met-
als and pulp & paper and cement and mining. 
Orders in the Process Automation business 
area also decreased compared to the prior year, 
when momentum for large orders was partic-
ularly strong. That said, the underlying market 
activity level remained robust with customers 
looking for ABB to support them in their journey 
towards decarbonization of heavy industries. 
This year, the customer activity was strongest in 
marine & ports, although overall orders declined 
due to the timing of large projects in the prior 
year. Strength was also noted in the low carbon 
segments and conventional power generation. 
Orders in the Robotics & Discrete Automation 
business area declined sharply. In the Machine 
Automation division orders declined as indus-
trial automation demand slowed, coupled with 
machine builders adjusting orders after high-
er-than-usual pre-ordering during past supply 
chain disruptions. The robotics segment de-
clined, driven mainly by fewer investments in the 
automotive sector and consumer electronics, 
while positive momentum was reported in logis-
tics and general industry.
In 2024, orders decreased 3 percent in the 
Americas (1 percent comparableO), driven mainly 
by the recording of two large orders in the 
U.S. totaling $435 million in 2023. Despite this 
impact, underlying demand in 2024 remained 
strong in the United States, while orders de-
creased in Canada and Mexico, but increased in 
Brazil. In Europe, orders were flat (flat compara-
bleO). Orders were higher in Germany, Sweden, 
Finland and the Netherlands while they declined 
in Italy, Norway and the United Kingdom. In Asia, 
Middle East and Africa, orders increased 2 per-
cent (5 percent comparableO). Orders declined in 
China but were more than offset by strong order 
growth in markets such as Australia, Japan and 
the United Arab Emirates.
Revenues
In 2024, revenues increased by 2 percent (3 per-
cent comparableO), primarily driven by volume 
growth, with additional support from positive 
price. Strong conversion of our order back-
log into revenue supported growth, driven by 
the Process Automation and Electrification 
Business areas, with the latter also positively 
impacted by increased short-cycle demand. 
Revenue was broadly stable in the Motion 
Business area with positive impacts from pric-
ing offset by negative volumes driven mainly 
by declines in the short-cycle businesses. In the 
­Robotics & Discrete Automation Business area, 
as well as the E-mobility Division, revenues de-
clined sharply as underlying markets remained 
weak, consistent with the slowdown in orders.
In 2024, revenues increased 6 percent in the 
Americas (8 percent comparableO), where 
revenues in the United States increased 8 per-
cent (9 percent comparableO). Revenues in the 
Americas also experienced strong growth in 
Canada and Chile. In Europe, revenues declined 
4 percent (4 percent comparableO). Revenues 
were higher in Switzerland, Norway, Spain and 
the United Kingdom while they declined in 
Germany, Italy and Sweden. In Asia, Middle East 
and Africa, revenues increased 4 percent (7 per-
cent comparableO) compared to 2023. Revenues 
grew in India, Saudi Arabia, Australia, and 
Singapore, partially offset by a decline in China 
of 4 percent (2 percent comparableO).
	

2 For additional informa-
tion and analysis about 
individual business area 
revenues and order per-
formance, refer to the 
relevant sections of the 
business analysis in our 
Financial Report 2024.
1.	For alternative perfor-
mance ­measures see 
chapter Alternative per-
formance measures
56
ABB INTEGRATED REPORT 2024
Introduction
Value creation
Good governance
Performance-based compensation
Appendix
Outputs and Outcomes

2=:B?3
FY 2024
FY 2024
Change year-on-year
Orders
Revenues
Comparable
1%
3%
FX
-1%
-1%
Portfolio changes
0%
0%
Total
0%
2%
:=/0=>-D=024:9
Change
($ in millions, unless otherwise indicated)
FY 2024
FY 2023
US$
ComparableO
Europe
11,454
11,458
0%
0%
The Americas
12,110
12,437
-3%
-1%
Asia, Middle East and Africa
10,126
9,923
2%
5%
ABB Group
33,690
33,818
0%
1%
=0A09@0>-D=024:9
Change
($ in millions, unless otherwise indicated)
FY 2024
FY 2023
US$
ComparableO
Europe
11,119
11,568
-4%
-4%
The Americas
11,805
11,090
6%
8%
Asia, Middle East and Africa
9,926
9,577
4%
7%
ABB Group
32,850
32,235
2%
3%
20,000
25,000
30,000
35,000
20,000
25,000
30,000
35,000
ORDERS
REVENUES
Orders
Comparable growth %
%
$ in millions
-10
0
10
20
2024
2023
2022
2021
2020
Revenues
Comparable growth %
%
$ in millions
-10
0
10
20
2024
2023
2022
2021
2020
57
ABB INTEGRATED REPORT 2024
Introduction
Value creation
Good governance
Performance-based compensation
Appendix
Outputs and Outcomes

Qgxtotmy
Gross profit
Gross profit increased by 9 percent (10 percent 
in constant currencyO) to $ 12,274 million in 
2024, resulting in a gross margin improvement 
of 260 basis points to 37.4 percent. Gross profit 
improved in three out of four business areas, 
with Electrification and Process Automation re-
porting double-digit growth driven by both vol-
ume and price. Motion improved at a mid-single 
digit rate driven by structural improvements in 
the long-cycle businesses offsetting lower vol-
umes in the short-cycle. The Robotics & Discrete 
Automation business area declined driven by 
lower volumes as backlogs normalized and a 
weak underlying market.
Income from operations
Income from operations in 2024 amounted to 
$5,071 million, representing an increase of 4 per-
cent from $4,871 million in the prior year. The 
improvement was primarily driven by stronger 
operational performance, as well as additional 
support from lower restructuring and related 
expenses which more than offset the adverse 
impact from portfolio changes, as the current 
year’s results were impacted by a charge of ap-
proximately $90 million due to the E-mobility 
business reducing its ownership in a subsidiary 
to a minority stake. In contrast, 2023 results 
were supported by gains of $101 million from 
the sale of businesses, including the divestment 
of the Power Conversion business. We also re-
corded higher losses for fair value changes in 
various equity investments compared to gains 
in 2023.
Operational EBITA
In 2024, Operational EBITA increased by 
10 percent (11 percent in constant currency) 
to $5,968 million and the Operational EBITA 
marginP was up by 120 basis points to 18.1 per-
cent. The expansion was driven by operating 
leverage on higher volumes and additional 
impacts from implemented price increases 
as well as lower underlying corporate costs. 
Combined these impacts more than offset some 
higher expenses related to Selling, General 
& Administrative expenses and Research & 
Development. Operational EBITA in Corporate 
and Other amounted to -$424 million, of which 
-$273 million related to the E-mobility business 
which was negatively impacted by inventory 
related impairments as well as technology 
investments geared towards a more focused 
product strategy to secure a continued market 
leading position.
Net finance expenses and non-operational 
pension credits
In 2024, interest and finance expenses dropped 
significantly, while interest and dividend income 
increased, resulting in a net finance income of 
$107 million, representing an improvement of 
$217 million compared to the prior year. The 
year-on-year improvement is mainly driven by 
a combination of a lower net debt position and 
favorable mix of interest rates between borrow-
ings and cash deposits as well as lower foreign 
exchange losses.
Non-operational pension credits increased by 
$38 million to $55 million compared to the same 
period last year, mainly driven by lower curtail-
ment and settlement costs and lower interest 
costs on the benefit obligation.
Income tax
In 2024, the effective tax rate increased to 
24.4 percent from 19.5 percent in 2023. In 
2024, the increase in the effective tax rate was 
primarily driven by the geographical mix of 
earnings, resulting in a negative impact of ap-
proximately 2 percentage points. The effective 
tax rate was also positively impacted by favor-
able reassessments of uncertain tax provisions 
of approximately 3 percentage points, while in 
2023 the respective benefit was approximately 
4 percentage points.
Net income and earnings per share
Net income attributable to ABB was $3,935 mil-
lion and increased by 5 percent. Basic earnings 
per share was $2.13 and increased by 6 percent. 
The increase was driven by improved opera-
tional performance offsetting higher adverse 
impacts from non-operational items than in 
2023 as discussed above.
1.	Constant currency 
(not adjusted for 
portfolio changes).
2.	For non-GAAP 
­measures see chap-
ter Alternative 
performance measures.
58
ABB INTEGRATED REPORT 2024
Introduction
Value creation
Good governance
Performance-based compensation
Appendix
Outputs and Outcomes

5,000
6,000
7,000
8,000
9,000
10,000
11,000
12,000
13,000
0.00
1.00
2.00
3.00
2024
2023
2022
2021
2020
0
2,000
4,000
6,000
GROSS PROFIT AND
GROSS MARGIN
BASIC EPS
INCOME FROM OPERATIONS AND
OPERATIONAL EBITA
Gross profit
Gross margin %
Basic EPS
%
$ in millions
25
27
29
31
33
35
37
39
2024
2023
2022
2021
2020
$ per share
Operational EBITA
Income from operations
Operational EBITA margin %
%
$ in millions
5
10
15
20
2024
2023
2022
2021
2020
59
ABB INTEGRATED REPORT 2024
Introduction
Value creation
Good governance
Performance-based compensation
Appendix
Outputs and Outcomes

Ngrgtik_nkkz
Net working capital
Net working capital amounted to $2,830 million, 
decreasing year-on-year from $3,257 million 
driven by the favorable impact from changes in 
exchange rates combined with an increase in 
trade payables and higher customer advances, 
more than offsetting the increase in receivables. 
Net working capital as a percentage of reve-
nuesO decreased from 10.2 percent at the end of 
2023 to 8.6 percent at the end of 2024.
Capital expenditures
Purchases of property, plant and equipment and 
intangible assets amounted to $845 million in 
2024 compared with $770 million in the same 
period last year.
Cash flows
In 2024, cash flows from operating activities 
generated net cash of $4,675 million, up from 
$4,290 million in 2023. Three out of four busi-
ness areas reported improved cash flows from 
operations, driven by stronger earnings and 
a reduction in net working capital compared 
to the prior year. Free cash flowO increased by 
$270 million to $3,937 million, with an FCF con-
version to net incomeO of 100 percent.
Return on Capital Employed
The Group’s benchmark for the measurement 
of returns is Return on Capital Employed 
(ROCE)O which increased by 180 basis points 
from 21.1 percent to 22.9 percent in 2024. The 
main driver of the improvement was higher 
Operational ­EBITA compared with 2023.
Net debt
During 2024, although we continued to return 
cash to shareholders in the form of dividends 
and purchases of treasury stock, we reduced 
our net debt (as presented in the table below) 
driven by continued strong cash from operat-
ing activities. During 2024, our net debt de-
creased $706 million to a net debt position of 
$1,285 million at December 31, 2024. The effect 
of exchange rate movements decreased net 
debt by approximately $200 million. In 2024, 
we generated free cash flows of $ 3,937 million 
and sold treasury stock in relation to our em-
ployee share plans for $451 million. These items 
were partly offset by amounts for purchases 
of treasury shares of $1,247 million, including 
$1 billion relating to the announced buybacks of 
our shares, as well as $1,769 million for the pay-
ment of the dividend to our shareholders. We 
made payments related to acquisitions totaling 
$622 million.
($ in millions,  
unless otherwise indicated)
December 31
2024
2023
Short-term debt and current  
maturities of long-term debt
293 
2,607
Long-term debt
6,652 
5,221
Total debt
6,945 
7,828
Cash & equivalents
4,311 
3,891
Restricted cash – current
15 
18
Marketable securities and  
short-term investments
1,334 
1,928
Cash and marketable securities
5,660 
5,837
Net debt (cash)
1,285 
1,991
1.	For non-GAAP 
­measures see chap-
ter Alternative perfor-
mance measures
60
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Introduction
Value creation
Good governance
Performance-based compensation
Appendix
Outputs and Outcomes

0
1,000
2,000
3,000
0
1,000
2,000
3,000
4,000
8
10
12
14
16
18
20
22
24
2024
2023
2022
2021
2020
Return on Capital employed ROCE
Impact of PG JV ownership interest
Target range >18%
0.0
0.4
0.8
1.2
2024
2023
2022
2021
2020
$ in millions
FREE CASH FLOW AND
CONVERSION RATE
NET DEBT
RETURN ON CAPITAL
EMPLOYED (ROCE)
Free cash flow
% of net income
Net debt
Net debt/EBITDA ratio
%
$ in millions
0
100
200
300
2024
2023
2022
2021
2020
%
61
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Introduction
Value creation
Good governance
Performance-based compensation
Appendix
Outputs and Outcomes

;=:.0>>
AUTOMATION
\kxluxsgtikul
business areas
60D142@=0>
($ in millions,  
unless otherwise indicated)
FY 2024
FY 2023
Change
US$
Comparable
Orders
16,422
15,189
8%
10%
Order backlog
7,506
6,808
10%
15%
Revenues
15,448
14,584
6%
9%
Operational EBITA
3,520
2,937
20%
as % of operational revenues
22.7%

+2.6 pts
Cash flow from operating activities
3,652
3,211
14%
No. of employees (FTE equiv.)
51,700
50,300
3%
ELECTRIFICATION
60D142@=0>
($ in millions,  
unless otherwise indicated)
FY 2024
FY 2023
Change
US$
Comparable
Orders
7,106
7,535
-6%
-5%
Order backlog
7,437
7,519
-1%
4%
Revenues
6,756
6,270
8%
9%
Operational EBITA
1,025
909
13%
as % of operational revenues
15.1%
14.5%
+0.6 pts
Cash flow from operating activities
1,158
1,002
16%
No. of employees (FTE equiv.)
22,500
21,100
6%
0
2,000
4,000
Orders
Revenues
Operational EBITA
Income from operations
Operational EBITA margin %
ORDERS AND REVENUES
$ in millions
$ in millions
INCOME FROM OPERATIONS
AND OPERATIONAL EBITA
%
10,000
13,000
16,000
2024
2023
2022
2021
2020
10
15
20
25
2024
2023
2022
2021
2020
Orders
Revenues
Operational EBITA
Income from operations
Operational EBITA margin %
ORDERS AND REVENUES
$ in millions
$ in millions
INCOME FROM OPERATIONS
AND OPERATIONAL EBITA
%
5,000
6,000
7,000
2024
2023
2022
2021
2020
0
500
1,000
1,500
2024
2023
2022
2021
2020
5
10
15
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ABB INTEGRATED REPORT 2024
Introduction
Value creation
Good governance
Performance-based compensation
Appendix
Outputs and Outcomes

=:-:?4.>g 
/4>.=0?0
AUTOMATION
MOTION
60D142@=0>
($ in millions,  
unless otherwise indicated)
FY 2024
FY 2023
Change
US$
Comparable
Orders
7,989
8,222
-3%
-2%
Order backlog
5,239
5,343
-2%
4%
Revenues
7,787
7,814
0%
0%
Operational EBITA
1,518
1,475
3%
as % of operational revenues
19.4%
18.9%
+0.5 pts
Cash flow from operating activities
1,776
1,532
16%
No. of employees (FTE equiv.)
22,400
22,300
1%
60D142@=0>
($ in millions,  
unless otherwise indicated)
FY 2024
FY 2023
Change
US$
Comparable
Orders
2,596
3,066
-15%
-15%
Order backlog
1,447
2,141
-32%
-29%
Revenues
3,213
3,640
-12%
-11%
Operational EBITA
329
536
-39%
as % of operational revenues
10.2%
14.7%
-4.5 pts
Cash flow from operating activities
315
436
-28%
No. of employees (FTE equiv.)
10,800
11,300
-4%
0
2000
4000
2024
2023
2022
2021
2020
Orders
Revenues
Operational EBITA
Income from operations
Operational EBITA margin %
ORDERS AND REVENUES
$ in millions
$ in millions
INCOME FROM OPERATIONS
AND OPERATIONAL EBITA
%
6,000
7,000
8,000
2024
2023
2022
2021
2020
12
16
20
-300
0
300
600
2024
2023
2022
2021
2020
Orders
Revenues
Operational EBITA
Income from operations
Operational EBITA margin %
ORDERS AND REVENUES
$ in millions
$ in millions
INCOME FROM OPERATIONS
AND OPERATIONAL EBITA
%
1,500
2,500
3,500
4,500
2024
2023
2022
2021
2020
0
5
10
15
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Introduction
Value creation
Good governance
Performance-based compensation
Appendix
Outputs and Outcomes

OUTLOOK
Looking to 2025, we will continue to deliver on our strategy of driving the ABB Way 
operating model further into our divisions, whereby generating additional long-
term accountability, transparency and speed. Our strong balance sheet supports 
acquisitions, and we are gaining some momentum in this area. Based on the 
deals we have already announced but not yet completed, we should approach our 
long-term target range for acquired growth. In addition, we intend to continue 
with share buybacks in line with our capital allocation principles. We acknowledge 
some market uncertainty and what currently seems to be an adverse impact on 
reported numbers from changes in exchange rates mainly due to the appreciation 
of the USD. That said, in full-year 2025, we expect a positive book-to-bill, compa-
rable revenue growth in the mid-single digit range and the Operational EBITA 
margin to improve year-on-year.
64
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Introduction
Value creation
Good governance
Performance-based compensation
Appendix
Outputs and Outcomes

BJHWJFYJ[FQZJYMWTZLM
\TWQI"HQFXXYJHMSTQTL^
Our significant R&D investments and highly skilled workforce enable 
us to continuously evolve our offering to remain a relevant and 
trusted partner for our customers. Technology and innovation are 
key to our long-term success. We are committed to staying ahead 
by developing world-class technologies that transform industries to 
reach new levels of performance and sustainability. 
~2,000
secondary patents filed in 2024
gGNQQNTS
R&D investment in 2024
~7,800
R&D employees
~22k
Granted patents
9
venture investments in 2024

gRNQQNTS
venture investments in 2024
~6k
Pending patent applications
>750
priority patents filed in 2024
4.5%
revenues invested in R&D in 2024
34237423?>
You are here 
in the value 
creation model.
65
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Good governance
Performance-based compensation
Appendix
Outputs and Outcomes

[{xgvvxuginzu^P
At ABB, our R&D is driven by our 19 divisions 
and focuses on developing and commercializing 
technologies that are strategically important 
for our future growth. As of December 31, 2024, 
we had approximately 7,800 employees work-
ing in R&D centers across ~30 countries on six 
continents, with over half dedicated to digital 
and software development. Women represent 
13.9 percent of our R&D workforce.
We invest a significant portion of our annual 
revenues in R&D. In line with our commitment 
to sustained innovation, we have increased 
our R&D spending by approximately 40 per-
cent since 2020, and have set an ambition to 
increase our R&D as a percentage of revenues 
to between 4.5% to 5%. In 2024, we invested 
$1,469 million, or approximately 4.5 percent of 
our consolidated revenues, in R&D activities, 
marking a 12 percent increase year-on-year. 
Additionally, we invest each year in order-re-
lated development activities – customer- and 
project-specific efforts to develop or adapt 
equipment and systems to meet unique cus-
tomer requirements. R&D spend by division in 
our business areas ranges from 1 to 10 percent 
of revenues, as each division is different and has 
different investment needs to maintain market 
leadership. This strategic allocation ensures 
that resources are used effectively to support 
growth and innovation. We seek to maintain a 
balance between short- and long-term R&D pro-
grams and optimize our return on investment. 
We keep control of our innovations by hold-
ing patents, copyrights and other intellectual 
property protections.
To complement our business-focused product 
development, our businesses invest jointly 
in collaborative research activities covering 
multiple technology areas including artificial 
intelligence (AI), software, sensors, control and 
optimization, mechatronics and robotics, power 
electronics, communication technologies, ma-
terials and manufacturing, electrodynamics and 
electrical switching technologies. In this way, we 
advance technologies that are used in our prod-
ucts and common technology platforms and 
apply them to multiple product lines.
800
1,000
1,200
1,400
1,600
R&D AND VENTURE CAPITAL INVESTMENTS
3.0
3.5
4.0
4.5
5.0
2024
2023
2022
2021
2020
2019
2018
%
$ in millions
Venture capital investments
Non-order related R&D, (excl. Divested divisions)
R&D & Venture investments as % of Revenues
R&D as % of Revenues
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Introduction
Value creation
Good governance
Performance-based compensation
Appendix
Outputs and Outcomes

Investments in digital solutions and 
artificial intelligence
In line with our decentralized ABB Way oper-
ating model, ABB’s digital strategy is both 
­customer-driven and business-led. Today, a 
significant proportion of our product portfo-
lio contains embedded software, increasingly 
enhanced by AI. We call this digitally and AI-
enabled technologies. This offering is comple-
mented by advanced software applications that 
can be applied in almost any industrial setting. 
Our main digital platform is ABB Ability™, 
which is also the brand name of our digital 
solutions offerings. Our advanced software 
applications comprise scalable software solu-
tions, developed primarily through organic 
growth initiatives, and complemented with 
venture investments and bolt-on acquisitions. 
This offering centers on six key value pillars: 
sustainability, operational excellence, process 
performance management, asset performance 
management, cyber security, and extended 
automation software updates. Some of our flag-
ship advanced software applications include:
•	 ABB Ability Genix
•	 ABB Ability™ Digital Powertrain
•	 ABB Ability™ Energy Manager
•	 RobotStudio®
Delivering “value through software” we make 
our core electrification and automation of-
ferings more secure and more connected. 
Leveraging ABB’s global footprint and extensive 
installed base, we gain deep industry insights 
that enable us to develop software, and digital 
solutions close to the automation layer and 
product level to help our customers optimize 
energy production and use, optimize assets and 
processes and optimize how people work.
This year, ABB introduced ABB Ability™ Genix 
Copilot, a generative AI solution developed in 
collaboration with Microsoft to drive efficiency, 
productivity, and sustainability in industrial op-
erations. Powered by Azure OpenAI Service and 
leveraging GPT-4, Genix Copilot integrates re-
al-time operational data with natural language 
capabilities to deliver actionable insights. By 
embedding these features into its digital solu-
tions, ABB enables industries to optimize asset 
performance, reduce emissions, and enhance 
energy efficiency. Early use cases demonstrate 
its impact in predictive maintenance, trou-
bleshooting, and sustainability management, 
underscoring ABB’s commitment to innovation 
and value creation.
Other AI-focused offerings include ABB Ability™ 
Efficiency AI, a smart buildings solution that 
uses AI to optimize heating, ventilation and air 
conditioning (HVAC); and ABB Ability Digital 
Powertrain, which uses AI to detect anomalies 
in motors.
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Appendix
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Strategic partnerships, business ventures, 
and M&A
Universities are incubators of future technology, 
and our R&D teams collaborate with multiple 
universities and research institutions to build 
research networks and foster new technologies 
which we potentially invest in and sometimes 
acquire. We believe these collaborations put us 
in a good position to add new technology to our 
existing portfolio. Our university collaborations 
include long-term, strategic relationships with 
leading institutions in various countries around 
the world facilitating recruitment and training 
of new talent.
To enhance our innovation efforts and gain 
speed, our divisions partner with other leading 
companies which have complementary compe-
tencies, and we invest in and collaborate with 
startups around the world through our venture 
capital arm, ABB Technology Ventures, and our 
start-up collaboration hub, SynerLeap. We act 
as a catalyst to push innovative entrepreneurs 
to success and bring benefits to ABB customers 
and society in the wider sense.
In 2024, we made 9 new venture investments, 
and 8 follow on investments for a total invest-
ment of approximately $50 million across our 
four business areas. The investments were 
driven by the divisions and focused primarily 
on digital capabilities including AI that will 
create synergies with our offering of digitally 
enabled products and services. We invested in 
two clean technology start-ups – Ndustrial and 
GridBeyond – offering AI powered solutions 
for real time optimized energy consumption 
for accelerated decarbonization as well as op-
timized distributed energy resources and in-
dustrial loads. In addition, we made a follow-on 
investment to strengthen our partnership with 
Pratexo to co-develop edge computing solu-
tions to improve security, autonomy and resil-
ience for decentralized electrical networks.
M&A is another way that we sustain and enhance 
our technology leadership. We have increased 
the number and size of bolt-on acquisitions 
to bolster our portfolio. A key example is our 
acquisition of Födisch Group, which enhances 
our capabilities in continuous emission mon-
itoring with advanced gas and dust measure-
ment solutions. This strategic move supports 
precise emission tracking strengthening our 
global leadership in continuous emission mon-
itoring. Another example is our acquisition of 
the shipping business of DTN Europe BV and 
DTN Philippines Inc., which expands our marine 
software offerings to include vessel weather 
routing, analytics, reporting, and shore-based 
support. This strategic move positions us as a 
market leader in ship route optimization, en-
abling us to provide comprehensive digital solu-
tions that enhance operational efficiency and 
support maritime decarbonization efforts.
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Value creation
Good governance
Performance-based compensation
Appendix
Outputs and Outcomes

Patents
Intellectual property rights are crucial to pro-
tect the assets of our business. Over the past 
ten years, we have added a substantial number 
of new applications to our existing first pat-
ent filings and we will continue to seek patent 
protection for our technologies, products and 
solutions. As of December 31, 2024, we have 
a portfolio of approximately 28,000 pending 
patent applications and granted patents, of 
which approximately 6,000 are pending appli-
cations. This portfolio includes approximately 
3,600 utility models and design rights, of which 
approximately 160 are pending applications. In 
2024, we filed over 750 priority patents, utility 
model and design applications, each covering 
a unique invention or unique angle on an inven-
tion. Additionally, we filed approximately 2,000 
secondary patents, utility model and design 
applications, each extending the coverage of a 
previously filed priority application.
Based on our existing intellectual property 
strategy, we believe that we have adequate 
control over our core technologies. The “ABB” 
trademarks and logo are protected in all of the 
countries in which we operate. We proactively 
assert our intellectual property rights to safe-
guard the reputation associated with ABB’s 
technology and brand. While these intellectual 
property rights are fundamental to all of our 
businesses, there is no dependency of the 
business on any single patent, utility model or 
design application.
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Good governance
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Appendix
Outputs and Outcomes

Uttu|gzouty
Innovation is at the core of ABB’s purpose to enable a more sus-
tainable and resource-efficient future. This year, we advanced 
technologies that enhance reliability and efficiency, helping indus-
tries navigate change while aligning with our long-term vision for 
smarter, more sustainable operations.
ABB pioneers advanced cable protection solu-
tion crafted from discarded ocean fishing nets
ABB is innovating solutions for increasing the 
life span of cables used across energy, transpor-
tation, automation, and chemical processing 
industries, where protection is needed against 
mechanical stress, chemicals, moisture, and UV 
exposure. ABB’s PMA EcoGuard™ is a more sus-
tainable cable protection solution made from 
recycled fishing nets. The recycled material has 
led to approximately 30 percent savings in COFe 
emissions and 50 percent reduction in use of 
net fresh water.
EcoGuard cable protection stands out for its 
high performance and durability, ensuring long-
term protection while minimizing the need for 
frequent replacements and reducing waste. 
The system’s ease of installation and resistance 
to wear contribute to its efficiency and sus-
tainability, making it a cost-effective solution 
over time. With innovations like the EcoGuard 
solution, ABB continues to minimize the need 
for frequent replacements, thereby preserving 
resources and reducing waste.
ABB achieves a world-first with liquid-cooled 
IE5 SynRM motor that sets the benchmark for 
energy efficiency and high power output
ABB has achieved a world-first with its liquid- 
cooled IE5 SynRM (Synchronous Reluctance 
Motor), setting a new benchmark for energy ef-
ficiency and high power output. This innovative 
motor offers superior performance while re-
ducing energy consumption, making it ideal for 
high-demand industrial applications like pumps, 
fans and compressors.
The liquid cooling system significantly enhances 
the motor’s efficiency by dissipating heat more 
effectively than traditional air-cooling ­methods. 
This allows the IE5 SynRM to operate at an 
IE5 efficiency level, the highest standard for in-
dustrial motors, while providing greater power 
density and reducing overall energy usage. As a 
result, the motor lowers operational costs and 
helps companies meet sustainability goals by 
reducing their carbon footprint.
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Good governance
Performance-based compensation
Appendix
Outputs and Outcomes

The IE5 SynRM also features advanced materials 
and design, ensuring optimal performance in 
demanding environments. It supports smooth 
integration into existing industrial systems, 
offering a more sustainable solution with-
out requiring major infrastructure changes. 
This technology is a significant leap toward 
­energy-efficient automation and helps indus-
tries reduce their environmental impact while 
maintaining high levels of productivity.
ABB’s liquid-cooled IE5 SynRM is a game-chang-
ing development in the field of energy-efficient 
motors, demonstrating the company’s leader-
ship in sustainable technologies. This innova-
tion not only delivers high power output but 
also sets a new standard for the future of indus-
trial electrification, contributing to the global 
push for decarbonization.
ABB is first to reach anticipated IE6 hyper-effi-
ciency with magnet-free motors – IE6
ABB has become the first company to achieve 
the anticipated IE6 hyper-efficiency standard 
with its magnet-free motors, marking a signifi-
cant milestone in energy efficiency and sustain-
ability. These motors surpass the IE5 efficiency 
class and are designed to deliver greater perfor-
mance while reducing energy consumption and 
carbon emissions.
The IE6 motors are built without the use of rare- 
earth magnets, which makes them both cost- 
effective and more sustainable, as they rely on 
more readily available materials. This innovation 
is especially important in industries that rely 
heavily on electric motors, as it helps to reduce 
operational costs and contributes to lower car-
bon footprints in applications like pumps, fans, 
and compressors.
In addition to their superior efficiency, ABB’s 
magnet-free motors are designed for easy 
integration into existing industrial systems, 
ensuring businesses can transition to more 
sustainable technologies without major infra-
structure changes. The motors provide excellent 
performance in demanding applications while 
supporting global energy transition goals.
This achievement represents ABB’s ongoing 
commitment to sustainable innovation and sets 
a new standard for energy-efficient solutions. 
With the IE6 motors, ABB is advancing the global 
push for decarbonization while helping indus-
tries achieve lower energy costs and reduce their 
environmental impact. This milestone further 
solidifies ABB’s leadership in electrification tech-
nologies and sustainable industrial solutions.
European Space Agency’s Harmony mission to 
rely on ABB infrared instruments
German space and technology company OHB 
System AG is working with ABB on developing 
and building the thermal infrared payloads 
for the European Space Agency’s (ESA) Earth 
Explorer Harmony satellites, planned to launch 
in 2029. ABB will equip the two satellites with 
multispectral thermal infrared payloads capable 
of measuring a wide range of environmental 
parameters, including sea surface temperature 
and the position of clouds and their motion.
ABB’s technology will enable ESA to measure 
cloud position and motion from space, ensur-
ing radiometric precision – the accuracy of the 
temperature measurement obtained by the in-
frared instruments compared to that of the true 
surface temperature (whether cloud or sea). 
The data collected by the mission will help the 
advancement of climate science as well as sup-
port the understanding and forecasting of ex-
treme weather such as hurricanes. In addition, 
over land, Harmony will provide information to 
estimate small shifts in the shape of the land 
surface, such as those leading to and resulting 
from earthquakes and volcanic activity.
The combination of thermal and radar imagery 
will help provide a wide array of data, giving 
more insight into upper-ocean heat exchanges, 
drivers of extreme weather, and the long-term 
impact of climate change. The mission will also 
provide new information for a better under-
standing of how ice being lost from glaciers is 
affecting sea level rise.
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Good governance
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Appendix
Outputs and Outcomes

OmniCore
ABB has launched its next-generation robot-
ics control platform, OmniCore™, designed to 
improve automation and enhance productivity 
across industries. OmniCore offers advanced 
performance, flexibility, and connectivity fea-
tures, enabling precise control and integration 
of robotic systems for a variety of applications, 
from manufacturing to logistics.
Key features of OmniCore include its ability 
to handle complex tasks with high precision, 
support for multiple robot types, and intuitive 
user interfaces. The platform is built for scal-
ability, allowing businesses to easily expand and 
adapt their robotic systems as needs evolve. 
OmniCore’s connectivity features enable re-
al-time data exchange, supporting predictive 
maintenance and seamless integration with 
other automation technologies, improving effi-
ciency and reducing downtime.
OmniCore also supports sustainability goals by 
optimizing energy use and reducing resource 
consumption during production processes. The 
platform is designed to boost the flexibility of 
automation systems, enabling faster adaptation 
to new tasks and changing production require-
ments. It provides companies with the tools to 
optimize their robotic systems and stay com-
petitive in an increasingly automated world.
SFJ-free switchgear
ABB has introduced the next generation of 
SFJ-free switchgear solutions, using dry air or 
natural origin gas technology for up to 24 kV, 
which will be commercially available in 2025. Gas 
Insulated Switchgear (GIS) is used in space-con-
strained urban areas, coastal regions, high alti-
tude and polluted, harsh environments thanks 
to its compact and robust design. Traditionally, 
GIS used sulfur hexafluoride (SFJ) as the insu-
lating medium due to its excellent electrical 
insulating properties and high electronegativity. 
However, due to its potency as a greenhouse 
gas and EU legislation banning the use of fluo-
ride gases, companies are transitioning away 
from SFJ. ABB has developed SFJ-free products 
that use the same user interface, footprint, 
proven components and operation as its exist-
ing SFJ portfolio. Electrification Distribution 
Solutions partners with businesses to navigate 
these regulatory changes with our next-gener-
ation SFJ-free switchgear and support utilities 
and industries on their decarbonization and en-
ergy transition journey.
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Outputs and Outcomes

ABB creates world’s first medium voltage, 
speed-controlled motor concept, facilitating 
industry’s contribution to a low carbon world
ABB has developed the world’s first medi-
um-voltage speed-controlled motor concept – 
MV Titanium, designed to help industries reduce 
their carbon footprint and contribute to a 
low-carbon world. This innovative motor com-
bines ABB’s advanced variable speed drive tech-
nology with a medium-voltage motor, enabling 
precise control over motor speed and energy 
efficiency. It offers industries significant im-
provements in energy savings and operational 
performance, particularly in high-demand sec-
tors like pumps, fans, and compressors.
By adjusting motor speed to match real-time 
requirements, the new concept minimizes 
energy waste and optimizes power consump-
tion, significantly reducing COF emissions. It 
also reduces the obstacles and costs related 
to installing a separate motor and drive pack-
age, including the associated electrical house 
(e-house), transformers, switchgear and cabling 
that multiplies the capital cost and increases 
the complexity of installation, especially on ex-
isting sites where space is at a premium.
This innovation also helps companies meet sus-
tainability goals while improving the efficiency 
and reliability of their operations. ABB’s medi-
um-voltage speed-controlled motor is a key step 
in the company’s efforts to promote decarbon-
ization and drive the transition to more sustain-
able industrial processes.
With this groundbreaking technology, ABB 
continues to lead in the development of eco-
friendly solutions that support industries in 
reducing their environmental impact while 
maintaining high performance and productivity.
OUTLOOK
We will continue to focus on technology leadership and further invest in our R&D 
capabilities, patents and trademarks. We plan to maintain our R&D spend in the 
range of 4.5–5.0 percent of revenues. One of our planned actions for 2025 includes 
the sixth ABB Electrification Start-up Challenge which will run until April 2025. 
Other business areas will also announce further start-up challenges in the 
coming months.
73
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Introduction
Value creation
Good governance
Performance-based compensation
Appendix
Outputs and Outcomes

BJJSFGQJFQT\"
HFWGTSXTHNJY^
Enabling a low-carbon society is at the center of our purpose and value 
proposition and a key pillar of our Sustainability Agenda. ABB contin-
ued its efforts and achievements in helping customers reduce and 
avoid emissions through our products, solutions and services. At the 
same time we have made progress in reducing emissions in our own 
operations and across our value chain.
34237423?>
•	 Validation of ABB’s scope 1, 2, and 3 net-zero 
science-based targets for 2050 by the Science 
Based Targets initiative (SBTi). This includes near-
term targets for 2030.
•	 Achieved a GHG emissions reduction of 78% 
compared to 2019 baseline for scope 1 and 2
•	 Made progress on Climate Group initiatives 
RE100, EV100 and EP100
•	 Introduced scope 3 targets into long-term 
performance planning
•	 Engaged with key customers and suppliers to 
exchange Product Carbon Footprint (PCF) data 
and reduce emissions
•	 Increased number of third-party verified 
Environmental Product Declarations (EPDs)
You are here 
in the value 
creation model.
74
ABB INTEGRATED REPORT 2024
Introduction
Value creation
Good governance
Performance-based compensation
Appendix
Outputs and Outcomes

MNN"ysgtgmksktz
gtjzgxmkzy
ABB’s value chain, from raw material ex-
traction to end-of-life, impacts climate change. 
Manufacturing, assembly and logistics from 
our own operations contribute directly to 
greenhouse gas (GHG) emissions. We mitigate 
this through energy-efficient processes, use 
of renewable energy, sustainable upstream 
practices and supplier engagement. Our big-
gest GHG emissions footprint lies in our value 
chain through indirect emissions, scope 3. 
Particularly, the use of products sold is the larg-
est contributor to our emissions, covering about 
96 percent of our total emissions, followed by 
emissions from purchased goods and services, 
while our scope 1 and 2 emissions account for 
less than 1 percent of total emissions. At the 
same time, our technologies enhance custom-
ers’ energy efficiency, leading to emissions re-
ductions, and are at the core of accelerating the 
energy transition. ABB’s central value proposi-
tion to our customers is providing products and 
services that optimize, electrify and decarbon-
ize while making how we move, produce, work 
and live more sustainable overall. We enable the 
fundamental transformation of many industries.
Our efforts to enable a low-carbon society focus 
on three areas:
•	 reducing GHG emissions in our 
own operations;
•	 collaborating with our suppliers to reduce 
their emissions; and
•	 supporting our customers to reduce and avoid 
emissions through the use of our products, 
solutions and services.
Under ABB’s Sustainability Agenda, we sub-
mitted updated targets to the Science Based 
Targets initiative (SBTi) for scope 1, 2, and 3 for 
2030 and 2050. These targets were validated 
by the SBTi for both our operations and our up-
stream and downstream value chain emissions. 
In line with the SBTi Net-Zero Standard, we have 
committed ourselves to having net-zero emis-
sions across all scopes by 2050.
To underpin the importance of these areas for 
ABB and incentivize performance, GHG emis-
sions reduction targets including scope 3, 
particularly the ones related to purchased 
goods and services and use of our prod-
ucts sold, have been integrated in long-term 
performance planning.
ABB is committed to leading the way in reduc-
ing impacts related to climate change, with 
a strategic focus on reducing scope 1 and 2 
GHG emissions by at least 80 percent by 2030, 
versus a 2019 baseline, and scope 3 GHG emis-
sions by 25 percent, versus a 2022 baseline. The 
cornerstone of this ambitious goal is assessing 
key decarbonization levers, particularly those 
which pertain to the use of sold products. Grid 
decarbonization is the biggest lever to reduce 
ABB’s emissions across the value chain. By de-
veloping and introducing ultra-efficient electric 
motors and drives, ABB is not only enhancing 
energy efficiency for its customers but also 
signifi­cantly lowering the emissions associ-
ated with the lifecycle of its products. These 
­products also have the potential to support 
avoiding emissions altogether as they lead to a 
reduced volume of GHG emissions as compared 
to alternative solutions.
ABB has updated its risks and opportunities 
analysis linked to climate change. This provides 
ABB with a comprehensive understanding of 
the climate challenges facing the industries 
it supports, as well as requirements linked 
to the adaptation to physical risks expected 
to impact its own value chain. By enabling a 
low-carbon society through its product and 
service offering ABB is well positioned to adapt 
to the context of climate change and also realize 
business opportunities.
	

2 More information on 
our climate-related risk 
and opportunity man-
agement can be found 
in our Sustainability 
Statement 2024.
75
ABB INTEGRATED REPORT 2024
Introduction
Value creation
Good governance
Performance-based compensation
Appendix
Outputs and Outcomes

Reduce absolute scope 1 & 2 emissions
80% by 2030
versus a 2019 baseline
Reduce absolute scope 3 emissions
25% by 2030
from a 2022 baseline
,--a>>-?4,;;=:A0/?,=20?>
Near term targets
Long term targets
Reduce scope 1 & 2 emissions
100% by 2050
versus a 2019 baseline
Reduce absolute scope 3 emissions
90% by 2050
versus a 2022 baseline
=JFHMSJY"_JWT
greenhouse gas emissions 
across the value chain by 2050 
76
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Introduction
Value creation
Good governance
Performance-based compensation
Appendix
Outputs and Outcomes







BJUWJXJW[JWJXTZWHJX
We collaborate with our stakeholders to safeguard natural resources 
in our value chain by embedding circularity principles in our opera-
tions and products, increasing recycling and reusability rates, and 
reducing waste and water use in areas at water risk. We are commit-
ted to preserving biodiversity and to using land responsibly. 
34237423?>
•	 Zero-waste-to-landfill and circularity targets 
included in ABB’s long-term planning process 
(LPP) with all divisions contributing to 
reaching the targets by 2030
•	 We decreased the percentage of waste sent to 
landfill to 5.8 percent
•	 We are expanding our water stewardship 
based on the Alliance for Water Stewardship 
(AWS) standard 
You are here 
in the value 
creation model.
83
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Introduction
Value creation
Good governance
Performance-based compensation
Appendix
Outputs and Outcomes






BJUWTRTYJXTHNFQUWTLWJXX
We are committed to promoting social progress, benefiting our employees, 
customers, stakeholders, and communities worldwide. We achieve this by 
prioritizing health and safety, championing diversity, equity and inclusion, 
and fostering professional growth within our workforce. Through the devel-
opment of our people and active engagement in community programs, we 
create lasting positive impacts. Our dedication to social progress is rooted 
in a strong respect for human rights, with zero tolerance for discrimination, 
as outlined in our Code of Conduct and Human Rights Policy. 
34237423?>
•	 Reached industry-leading low lost-time injury 
­frequency rate (LTIFR) of 0.15
•	 Launched updated Diversity, Equity and 
Inclusion (DEI) policy which sets out the 
core elements of DEI practices that apply to 
employees in all businesses, divisions, and 
functions within the ABB Group
•	 Enhanced Human Rights Due Diligence (HRDD) 
in operations based on the new Human Rights 
Policy and HRDD Framework and updated 
human rights training offering
•	 Released guidelines to formalize ABB’s 
­community engagement 
You are here 
in the value 
creation model.
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Introduction
Value creation
Good governance
Performance-based compensation
Appendix
Outputs and Outcomes














BJJRGJIFHZQYZWJTKNSYJLWN
FSIYWFSXUFWJSH^FQTSL
YMJJ]YJSIJI[FQZJHMFNS
At ABB, integrity and transparency define how we do business. They are the 
foundation of our Sustainability Agenda and underpin our value creation. We 
recognize the importance of doing business ethically and maintaining ethical 
business relationships. In 2024, we built upon the actions we took in 2023, 
with a focus on embedding integrity processes within each of our business 
areas. In this chapter, we highlight key actions taken in 2024 to strengthen a 
culture of integrity and transparency along our extended value chain.
34237423?>
Third Party Management (TPM)
This year, we enhanced the TPM framework 
and tested its implementation, develop-
ing comprehensive monitoring and risk 
mitigation guidance.
Legacy risk management
In 2024 we focused on risk management of 
our legacy suppliers and sales channel third 
party relationships.
Bespoke business areas risk management plans
Our business areas developed specific plans to 
monitor and mitigate their third-party risks with 
a focus on resourcing for sustaining operations.
Integrity culture
We strengthened our integrity culture in 2024 by 
revamping our Straight Talk program for all-em-
ployee learning, enhancing risk specific training 
for sales employees, and shared greater investi-
gation insights for transparency, awareness and 
risk management.
Data analytics and integrity risk monitoring
ABB uses various tools and platforms to track 
progress and drive performance in regard to our 
integrity approach. Our continuous monitoring 
platform allows us to analyze potential integrity 
risks based on continued risk assessment and 
lessons learned from past cases.
In 2024 we enhanced our Risk and 
Implementation Dashboards to allow us to mon-
itor a broader range of metrics. The increased 
availability of this data allows our organization 
to proactively identify integrity risks and op-
portunities and analyze trends and program 
enhancement outcomes.
Supplier Code of Conduct
In 2024, our updated Supplier Code of Conduct 
went into effect. To support the roll-out, we 
organized high-level training sessions for our 
suppliers in multiple languages. Several deep 
dive trainings covering different topics of the 
supplier code were developed and made avail-
able for ABB personnel.
Sustainable Supply Base Management
To align with our updated Supplier Code of 
Conduct, we have thoroughly reviewed and 
updated the assessment protocol for on-site 
supplier assessments.
In line with changes in country risk profiles, ABB 
product portfolio and supplier base, we have re-
viewed and updated our list of focus countries.
You are here 
in the value 
creation model.
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Introduction
Value creation
Good governance
Performance-based compensation
Appendix
Outputs and Outcomes

Utzkmxoz
We continuously work on improving and en-
hancing our Global Integrity Program through 
controls, processes and a culture that deters 
non-compliance behavior and drives trans-
parency and sustainable business. Our five 
core Integrity & Regulatory Affairs procedures 
include oversight and responsibilities for ac-
countability, as well as procedures related to 
third-party management, data privacy, conflicts 
of interest and global trade. We have defined 
five integrity principles that guide everything 
we do at ABB:
1. We behave and do business in an ethical way.
2. We work in a safe and sustainable way.
3. We build trust with all stakeholders.
4. We protect ABB’s assets and reputation.
5. We speak up and do not retaliate.
The ABB Code of Conduct is our individual and 
collective commitment to uphold the highest 
standards of business ethics throughout our 
global value chain. It guides our employees, 
business partners and suppliers to do business 
with integrity.
Our Global Integrity Program includes integrity 
learnings and communications. The learning 
modules are delivered in a virtual e-learning 
format as well as face-to-face. We actively pro-
mote self-driven learning for all employees, 
supplemented by bespoke and role-specific 
mandatory training for those that face higher in-
tegrity risks. Alongside these integrity-focused 
learning modules, managers at all levels of the 
company are expected to model integrity behav-
iors and hold team discussions to ensure that 
our teams understand what is expected when 
it comes to ethical conduct and treating people 
with respect. Integrity Committees in all busi-
ness areas and divisions support this approach.
In 2024, we continued to develop our integrity 
learning programs and focused on strengthen-
ing our integrity culture. This included revamp-
ing our Straight Talk learning platform, which 
continues to provide impactful real-life integrity 
learnings at ABB in support of our speak-up 
culture. We also created a new antitrust foun-
dation training, and added other new integrity 
content on behavior drivers to the integrity 
awareness portal. Our business areas also im-
plemented tailored integrity learning programs 
for their teams, based on their bespoke risk 
management plans.
We enhanced our Business Ethics Helpline and 
reporting capabilities. We empowered business 
area teams to directly conduct investigations to 
increase accountability for workplace behavior 
within those business areas.
To track potential indicators of the effective-
ness of our integrity-related initiatives, and as-
sess risk, we utilize data analytics. Our Integrity 
Analytics Report, a live dashboard available 
throughout ABB via our integrity web portal, 
provides insights into our integrity program 
performance and is available to our employee 
population. Our Investigation Dashboards are 
also made available to the appropriate stake-
holders as part of our risk assessment and 
management strategy. Risk assessment abilities 
were further enhanced in 2024 with the creation 
of the Risk Monitoring Dashboard. This dash-
board supplements the existing integrity and 
investigations metrics with additional metrics 
and risk scoring capabilities to identify poten-
tial areas of heightened risk for business focus.
In 2024, our trust and ­engagement KPIs were 
as follows for the period 2021–2024:
•	 Trust KPI – the rate of severity level 1 and 2 
investigations where the reporters disclosed 
their identity, as a measure of trust in the re-
porting system and integrity program: 55 per-
cent of reporters as compared to 60 percent in 
the period 2021–2023.
•	 Engagement KPI – the volume of unique vis-
itors on the Integrity Awareness Portal for 
integrity learnings: 82 percent of employees 
with online access, as compared to 80 percent 
in the period 2021–2023.
	

2 See ABB’s Code 
of Conduct and Supplier 
Code of Conduct.
104
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Introduction
Value creation
Good governance
Performance-based compensation
Appendix
Outputs and Outcomes




^kyvutyohrkyu{xiotm
ABB is committed to sourcing responsibly and 
will only work with suppliers that share our com-
mitment to integrity, sustainability and human 
rights and have agreed to the requirements set 
out in the Supplier Code of Conduct. Therefore, 
the ABB Supplier Code of Conduct is part of 
our procurement terms and conditions as well 
as our supplier qualification, development and 
evaluation requirements.
The ABB Supplier Code of Conduct was updated 
in 2023 and became effective on January 1, 2024. 
It explains in detail what we expect of our 
suppliers. The updated version addresses the 
latest changes in regulatory requirements such 
as the German Supply Chain Due Diligence Act 
(Lieferkettensorgfaltspflichtengesetz, LkSG) 
and the Swiss Ordinance on Due Diligence and 
Transparency in relation to Minerals and Metals 
from Conflict-Affected Areas and Child Labour 
(DDTrO). It also acknowledges the international 
human rights and environmental guidance and 
conventions, takes account of stakeholder ex-
pectations and emphasizes the role of suppli-
ers in preventing and mitigating sustainability 
risks, especially when it comes to upholding 
human rights and reducing GHG emissions. The 
updated implementation guide for the Supplier 
Code provides suppliers with hands-on advice 
on how to fulfill ABB’s requirements and fa-
cilitates the effective implementation of the 
Supplier Code of Conduct.
In seeking to prevent human rights violations in 
our supply chain, we substantively revised the 
section on “Human rights and decent work” in 
our Supplier Code and included more specific 
requirements regarding modern slavery, harass-
ment, discrimination and diversity, as well as 
the rights of local communities and vulnerable 
groups. Furthermore, a section on “Climate and 
environment” was added to reflect our intensi-
fied efforts to mitigate climate change. We have 
expanded the list of potential environmental 
impacts to include topics of growing interest 
to our stakeholders, such as GHG emissions, 
circularity, biodiversity and deforestation. 
The updated Supplier Code explicitly requires 
suppliers to disseminate and enforce these 
requirements across their own supply chains 
and to report any suspected violations. At the 
start of 2024, we provided high-level awareness 
training to our suppliers, followed by deep dive 
trainings for ABB employees later in the year, 
covering different topics of the Supplier Code, 
such as child labor and modern slavery. In 2025, 
we will make deep dive trainings available more 
generally and focus on providing these trainings 
to our suppliers.
After performing a risk review, we updated 
our list of focus countries to reflect both the 
changed composition of the ABB supplier base 
and changes in risk levels of countries our sup-
pliers are based in. Implementation activities 
are ongoing for newly added countries.
We use our Third Party Management program 
to assess and manage risks as well as to on-
board and monitor engagement with third 
parties across the entire value chain, including 
upstream (suppliers) and downstream (custom-
ers). It involves the following elements:
•	 Risk-based front-end due diligence prior to 
considering engagement;
•	 Appointments subject to structured 
approval processes;
•	 Standard agreement that should include an-
ti-bribery provisions, audit rights and the 
right to terminate agreements for any viola-
tion; and
•	 Risk-appropriate monitoring over the life cycle 
of the engagement.
The ABB Sustainable Supply Base Management 
(SSBM) Program is part of ABB’s Third Party 
Management approach. As part of the SSBM 
program, we assess suppliers for their sustain-
ability performance and mitigate risks identi-
fied. This involves a supplier self-assessment 
during the onboarding process, and subsequent 
further due diligence in case of high-risk scores, 
including mandatory onsite audits according 
to the Generic Protocol in focus and high-risk 
countries. Additionally, we perform sustainabil-
ity assessments in focus countries on existing 
suppliers using the SSBM Country Specific 
Assessment Protocol. In 2024, we updated this 
protocol to align with the updated requirements 
in the Supplier Code.
After adjusting the SSBM Country Specific 
Protocol in 2023 to permit audits of temporary 
labor suppliers, we continued with pilots in 
multiple countries.
	

2 See ABB’s Supplier 
Code of Conduct.
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Introduction
Value creation
Good governance
Performance-based compensation
Appendix
Outputs and Outcomes




BJMJQUNSIZXYWNJX
TZYWZSg„QJFSJWFSI
HQJFSJWHFXJXYZINJX
ABB’s advanced technologies are only as powerful as the 
ways in which they are applied and used to deliver value for 
our customers and the greater environment and society. 
Our technologies support our customers across 
a variety of industries to be more productive, ef-
ficient and sustainable so they can outperform. 
Our automation technologies help improve 
productivity and efficiency of critical day-to-
day operations. Our electrification technologies 
help decarbonize energy intensive industries, 
from power and manufacturing, all the way to 
transportation and buildings.
Through our Sustainability Agenda we deliver 
value to stakeholders by enabling a low-carbon 
society, supporting the preservation of re-
sources and promoting social progress. Within 
these key pillars, we are working hard to enable 
the energy transition, decarbonize energy-inten-
sive industries, promote principles of circularity 
and promote social progress.
In these pages, we present a selection of cases 
that exemplify how ABB’s technologies have 
been applied to deliver on our customers’ needs 
and on our own sustainability ambitions.
Sustainability pillars the project 
contributes to:
Low-carbon society
Preserving resources
Promoting social progress
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Outputs and Outcomes
Introduction
Value creation
Appendix
Good governance
Performance-based compensation












04
2::/
2:A0=9,9.0
125	
Corporate Governance
128	
Board of Directors
129	
Executive Committee

ABB complies with all relevant frameworks, 
including the Swiss Code of Obligations, the 
Swiss Code of Best Practice for Corporate 
Governance and the rules of the capital markets 
where its shares are listed. Governance princi-
ples are also anchored in various ABB corporate 
documents, such as its Articles of Incorporation, 
its Board Governance Rules and its policies 
and procedures.
Strong corporate governance is not only neces-
sary to ensure compliance with applicable legal 
requirements but is indispensable for creating 
sustainable value. We are convinced that our 
established governance culture helps ABB suc-
cessfully manage its business and realize oppor-
tunities for the benefit of all of its stakeholders.
The foregoing also applies to sustainability. 
ABB has a robust sustainability governance 
structure from its Board of Directors through to 
its operating divisions. Our Board of Directors 
reviews and approves the Sustainability Agenda 
and related targets. The ABB Group Executive 
Committee validates the Sustainability 
Agenda, is responsible for its implementation 
and ensures that a sustainability culture is 
embedded in our business decision making. 
The Sustainability Council is the operational 
body that oversees implementation of the 
Sustainability Agenda, reviews developments 
and monitors progress toward targets. In line 
with the ABB Way and our decentralized oper-
ating model, our four business areas and their 
divisions are ultimately accountable for putting 
action plans in place and ensuring that appro-
priate resources are available to implement 
these plans and deliver on our targets.
OuxvuxgzkSu|kxtgtik
ABB is committed to the highest international standards of 
corporate governance. This is reinforced in its structure, pro-
cesses and rules, as outlined in more detail in ABB’s Corporate 
Governance Report.
	

2 More information 
about our sustainabil-
ity governance struc-
ture can be found in 
our Sustainability 
Statement 2024.
,--2:A0=9,9.0>?=@.?@=0
BOARD OF DIRECTORS
EXECUTIVE COMMITTEE
Governance
and Nomination
Committee
Compensation
Committee
Finance, Audit
and Compliance
Committee
125
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Value creation
Outputs and Outcomes
Performance-based compensation
Appendix
Good governance



While the Board takes decisions as a whole, 
its three committees – the Finance, Audit and 
Compliance Committee, the Governance and 
Nomination Committee and the Compensation 
Committee – support it with high-level ex-
pertise and by ensuring an efficient mode of 
operation. Special attention is paid to sustain-
ability aspects: oversight of ABB’s Sustainability 
Agenda is the responsibility of the Governance 
and Nomination Committee; the Finance, 
Audit and Compliance Committee assists the 
Board in overseeing the integrity of the com-
pany’s sustainability-related reporting; and the 
Compensation Committee ensures that ABB’s 
executive compensation policies are appro-
priately aligned to its Sustainability Agenda. 
Ultimate responsibility for ABB’s Sustainability 
Agenda, its sustainability targets and its annual 
Sustainability Statement lies with the entire 
Board of Directors.
808-0=>:1?30-:,=/

#
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Board 
experience 
Corporate officer 
experience
Other business 
experience
Board member
ABB Board 
tenure (years)
Other public 
board 
experience
CEO
CFO
Operations
Risk 
management
SustainabilityO
 
Digital/
technology
Global 
experience
Country 
of origin/
nationality
Gender
Non-executive
Independent
Peter Voser
’&
•
•
•
•
•
•
•
•
CH
M
Yes
Yes
David Constable
’&
•
•
•
•
•
•
CA, US
M
Yes
Yes
Frederico Curado
/
•
•
•
•
•
•
•
BR, PT
M
Yes
Yes
Lars Förberg
.
•
•
•
•
•
SE, CH
M
Yes
Yes
Johan Forssell
’
•
•
•
•
•
•
•
SE
M
Yes
Yes
Denise Johnson
(
•
•
•
•
•
•
US
F
Yes
Yes
Jennifer Xin-Zhe Li
-
•
•
•
•
•
•
•
CN, CA
F
Yes
Yes
Geraldine Matchett
-
•
•
•
•
•
•
CH, UK, 
FR
F
Yes
Yes
David Meline
/
•
•
•
•
•
•
US, CH
M
Yes
Yes
Mats Rahmström
’
•
•
•
•
•
•
•
SE
M
Yes
Yes
1.	 For detailed information about sustainability experience see Sustainability Statement 2024.
NugxjulPoxkizuxy
ABB’s Board of Directors is responsible for the strategy of the com-
pany. It is a truly diverse board: all members represent a broad vari-
ety of geographical, business, management and cultural experience. 
With the latest elections at ABB’s Annual General Meeting 2024, the 
entire Board of Directors has been renewed within the past 10 years.
128
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Outputs and Outcomes
Performance-based compensation
Appendix
Good governance

In line with the Board’s leading ­example, 
ABB strives to have an equally diverse 
Executive Committee in all aspects, not only 
in business and management ­experience, 
but also when it comes to ­geographical and 
cultural backgrounds.
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Each member of the Executive Committee is appointed by the 
Board of Directors. The Board has delegated the executive manage-
ment of ABB to the CEO, who – together with the other members 
of the Executive Committee – is responsible for the company’s 
operational business.
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Outputs and Outcomes
Performance-based compensation
Appendix
Good governance



133	
Extracts from Compensation 
Committee Chair Letter
135	
Board compensation
136	
Executive Committee compensation
140	
Sustainability-related considerations 
in ABB’s compensation
PERFORMANCE-
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05

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Chair Letter
Our focus at the Compensation Committee is to ensure that 
the compensation structure at ABB drives value creation for our 
shareholders, represents a motivating package for our executives, 
and ensures alignment with market best-practices and with our 
Sustainability Agenda.
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.3,920>49;:74.40>,9/
/4>.7:>@=0>
In the spirit of continuous improvement and 
considering stakeholder feedback, we plan to 
make a couple of enhancements to our Annual 
Incentive Plan (AIP), applicable from 2025. 
Currently, the total weighting associated with 
Group and business area financial measures 
represents 80 percent of Executive Committee 
(EC) member’s target AIP award, with the re-
maining 20 percent attributed to the individual 
measure, which contains a combination of 
sustainability, operational and strategic goals. 
From 2025, we will increase the weighting of the 
financial measures from 80 percent to 90 per-
cent and replace the individual measure with 
two mandatory sustainability goals, with a com-
bined weighting of 10 percent.
We believe the increased focus on the finan-
cial business measures will help reinforce 
our continued drive to achieve our ambitious 
financial targets.
Furthermore, we think that having two clearly 
measurable sustainability goals in the  AIP will 
strengthen and support ABB’s commitment to 
sustainability and complement the sustainabil-
ity measure in our Long-Term Incentive Plan 
(LTIP), which has a material weighting of 20 per-
cent of the target award. Details related to the 
sustainability target for the 2025 LTIP are dis-
closed in the Compensation Report 2024.

=0>@7?>,9/
.:8;09>,?4:9;:74.D
:@?.:80>
2024 was a year of strong operational and 
financial performance. Overall, most key fi-
nancial, sustainability and operational targets 
were met or exceeded. ABB (the company) 
delivered new highs for operational EBITA mar-
gin and revenues in 2024. The company also 
progressed on orders and continued to make 
significant progress in reducing its environ-
mental footprint and contributing to a more 
sustainable environment. 
Board of Directors (Board)
The total Board compensation for the 2024–2025 
term (CHF 4.25 million) is within the maximum 
amount (CHF 4.4 million) approved at the Annual 
General Meeting (AGM) 2024. There has been 
no change to the individual Board member fees 
since 2015.
Executive Committee (EC)
No EC members in place at the time of ABB’s 
annual salary review received a salary adjust-
ment in March 2024. The average award for EC 
members under the AIP for 2024 in their year-
end roles was 119 percent (out of a maximum 
of 150 percent), compared to 143.3 percent in 
2023. The achievement level of the 2021 LTIP, 
which vested in 2024, was 200 percent (out of a 
maximum of 200 percent), driven by strong evo-
lution of ABB’s Earnings Per Share (EPS) during 
the period and ABB’s vigorous relative Total 
Shareholder Return (TSR).
The total EC compensation was CHF 44.5 million 
in 2024, driven by the strong performance-re-
lated variable pay awards and the appointment 
	

2 For more information 
on ABB’s 2024 sustain-
ability achievements 
please refer to sections 
Outputs and Outcomes 
of this Report.
133
ABB INTEGRATED REPORT 2024
Introduction
Value creation
Outputs and Outcomes
Good governance
Appendix
Performance-based compensation


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Compensation for the 2024–2025 term of office
The total Board compensation for the 2024–2025 
term of office (CHF 4,250,000) was within the 
maximum amount (CHF 4,400,000) approved at 
the Annual General Meeting (AGM) 2024.
There has been no change to the individual 
Board fees since 2015.
In Exhibit 1 we set out the fees by member for 
the 2024–2025 Board term.
0C34-4?g
Board fees for the 2024–2025 term of office (in CHF) by member
Name
Board
Compensation 
Committee
Finance, Audit 
and Compliance 
Committee
Governance and 
Nomination 
Committee
Total Compensation
Peter VoserO
1,200,000
–
–
–
1,200,000
David ConstableP
290,000
30,000
–
–
320,000
Frederico CuradoQ
290,000
60,000
–
–
350,000
Lars FörbergP
290,000
–
–
30,000
320,000
Johan ForssellP
290,000
–
–
30,000
320,000
Denise JohnsonP
290,000
–
40,000
–
330,000
Jennifer Xin–Zhe LiP
290,000
30,000
–
30,000
350,000
Geraldine MatchettP
290,000
–
40,000
–
330,000
David MelineQ
290,000
–
110,000
–
400,000
Mats RahmströmP
290,000
–
40,000
–
330,000
Total 
4,250,000
1.	 Chairman of the Board, who does not receive any additional committee fee as Chairman of the Governance and Nomination Committee.
2.	 Member of a Committee.
3.	 Chairman of a Committee.
135
ABB INTEGRATED REPORT 2024
Introduction
Value creation
Outputs and Outcomes
Good governance
Appendix
Performance-based compensation

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Compensation structure during 2024
We summarize the elements of the EC members’ 
­compensation structure, including the purpose, 
the link to strategy and applicable performance 
indicators as shown in Exhibit 2. 
0C34-4?g

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Fixed compensation –  
base salary and benefits
Variable compensation – 
short-term incentive (AIP)
Variable compensation –  
long-term incentive (LTIP)
Wealth at risk/ 
Share ownership
Purpose and link 
to strategy
Facilitates attraction and re-
tention of talented EC mem-
bers; base salary compen-
sates for the role and 
relevant ­experience; bene-
fits protect against risk
Rewards annual company, 
business area, functional 
and individual performance. 
Aligned with the Company’s 
Annual Performance Plan
Rewards company 
performance over a three-
year period and encourages 
creation of long-term, 
sustainable value for 
shareholders. Aligned with 
the Company’s Long-Term 
Performance Plan
Aligns individual’s personal 
wealth at risk directly to the 
ABB share price, and EC 
members’ interests with 
those of shareholders to 
maintain focus on ABB’s 
long-term success
Operation
Salary in cash, benefits in 
kind, and pension 
contributions
Annual awards, payable in 
cash after a one-year perfor-
mance period; malus 
and clawback provisions in 
place
Annual grants in shares 
which may vest after three 
years, and are subject to 
performance conditions; 
malus and clawback provi-
sions in place
Individuals are required to 
hold ABB shares
Opportunity level
(as % of base salary)
Based on scope of 
responsibilities, personal 
experience, and skillset
Minimum
Target
Maximum
0%
100%
150%
CEO
Minimum
Target
Maximum
0%
150%
300%
Other EC membersO
Minimum
Target
Maximum
0%
150%
300%
CEO 
500% of annual salary  
(net of taxes)
Other EC members 
400% of annual salary  
(net of taxes)
Performance 
indicators
Changes to base salary 
­consider individual 
performance, future 
potential, broadening of 
responsibilities, and 
external benchmarking
CEO and 
corporate 
officers
80% Group financial results
20% 
Individual results
20% 
Group financial results
60% Business area
financial results
20% 
Individual results
Business 
area 
Presidents
All EC 
members
50% Average EPS
30% 
Relative TSR
20% 
Sustainability
Exposure to ABB share price
1.	 EC members with legacy employment contracts have a Target LTIP grant of 100 percent and Maximum LTIP opportunity of 200 percent.  
The higher LTIP opportunity for the newer EC members is largely offset by lower pension and other benefit costs.
136
ABB INTEGRATED REPORT 2024
Introduction
Value creation
Outputs and Outcomes
Good governance
Appendix
Performance-based compensation




Impact of sustainability performance on vari-
able compensation
Given sustainability is an integral part of ABB’s 
strategy and plans, we incorporate a strong, di-
rect link between our Sustainability Agenda and 
executive incentives through our key variable 
compensation programs such as AIP and LTIP.  
Regarding the AIP for 2024, all EC members had 
three sustainability goals (out of a maximum of 
three) in the individual component of their re-
spective plans. 
In 2024, all EC members had an environmen-
tal goal (scope 1 and 2 greenhouse gas (GHG) 
emissions). Most of the EC members had a so-
cial goal, which for the CEO and business area 
presidents was safety, and for most corporate 
officers was an increase in the proportion of 
women in senior management roles (female 
leaders), while the CFO had a governance goal 
related to internal controls.
In addition, all EC members had a governance 
goal designed to help deliver ABB’s obligations 
under the Deferred Prosecution Agreement 
(DPA) in line with our commitments to the US 
Department of Justice.
From 2025, we will replace the individual mea-
sure under the AIP with two mandatory sus-
tainability goals, with a combined weighting of 
10 percent.
Regarding the LTIP granted to ABB’s execu-
tives in 2024, including the EC, we continued 
to carry a company-wide sustainability perfor-
mance measure in the LTIP with a weighting of 
20 percent.
For the 2024 LTIP, our sustainability perfor-
mance measure was the Company’s scope 1 and 
2 GHG emissions reduction at the end of the 
three-year performance period (2024–2026), 
compared to the 2019 baseline. 
The sustainability measure applied to the 2025 
LTIP is the same as that applied to the 2023 and 
2024 LTIP, namely scope 1 and 2 GHG emissions 
reduction at the end of a three-year perfor-
mance period. The 2025 LTIP targets will be 
based on scope 1 and 2 GHG emissions reduc-
tion over the three-year performance period 
from 2025–2027, compared to a baseline of the 
2024 total scope 1 and 2 GHG emissions.
We will consider the appropriateness of the 
sustainability measure for future LTIPs, given 
the fact that, by the end of the 2025 LTIP cycle 
(i.e., end of 2027) ABB will have broadly achieved 
its scope 1 and 2 emissions reduction goals. 
This activity will be part an LTIP design review 
which the Compensation Committee will un-
dertake during 2025 and will inform LTIP grants 
from 2026.
Details of the long-term GHG emissions reduc-
tion targets can be found in our Sustainability 
Statement 2024.
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There are a range of sustainability-related considerations which play 
an important role in our compensation philosophy, including the de-
sire to foster a strong link between ABB’s Sustainability Agenda and 
the variable compensation for the EC and other executives, as well 
as the general ambition to reinforce the Company’s social contract 
with its employees.
140
ABB INTEGRATED REPORT 2024
Introduction
Value creation
Outputs and Outcomes
Good governance
Appendix
Performance-based compensation


06
,;;09/4C
143	
Alternative performance measures
146	
Key terms
148	
Financial calendar 2025

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The following are definitions of key financial 
measures used to evaluate ABB’s operating 
performance. These financial measures are re-
ferred to in this Integrated Report and are not 
defined under United States generally accepted 
accounting principles (US GAAP).
While ABB’s management believes that the alter-
native performance measures herein are useful 
in evaluating ABB’s operating results, this infor-
mation should be considered as supplemental 
in nature and not as a substitute for the related 
financial information prepared in accordance 
with US GAAP.
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Growth rates for certain key figures may be pre-
sented and discussed on a “comparable” basis. 
The comparable growth rate measures growth 
on a constant currency basis. Since we are a 
global company, the comparability of our oper-
ating results reported in US dollars is affected 
by foreign currency exchange rate fluctuations. 
We calculate the impacts from foreign currency 
fluctuations by translating the current‑year peri-
ods’ reported key figures into US dollar amounts 
using the exchange rates in effect for the com-
parable periods in the previous year.
Comparable growth rates are also adjusted for 
changes in our business portfolio. Adjustments 
to our business portfolio occur due to acqui-
sitions, divestments, or by exiting specific 
business activities or customer markets. The 
adjustment for portfolio changes is calculated 
as follows: where the results of any business 
acquired or divested have not been consol-
idated and reported for the entire duration 
of both the current and comparable periods, 
the reported key figures of such business are 
adjusted to exclude the relevant key figures 
of any corresponding quarters which are not 
comparable when computing the comparable 
growth rate. Certain portfolio changes which 
do not qualify as divestments under US GAAP 
have been treated in a similar manner to divest-
ments. Changes in our portfolio where we have 
exited certain business activities or customer 
markets are adjusted as if the relevant business 
was divested in the period when the decision to 
cease business activities was taken. We do not 
adjust for portfolio changes where the relevant 
business has annualized revenues of less than 
$50 million.
:;0=,?4:9,70-4?,
MARGIN
Operational EBITA margin
Operational EBITA margin is operational EBITA 
as a percentage of operational revenues.
Operational EBITA
Operational earnings before interest, taxes 
and acquisition‑related amortization (op-
erational EBITA) represents income from 
operations excluding:
•	 acquisition‑related amortization (as 
defined below),
•	 restructuring, related and implementation 
costs (as defined below),
•	 changes in the amount recorded for obliga-
tions related to divested businesses occur-
ring after the divestment date (changes in 
­obligations related to divested businesses),
•	 gains and losses from sale of businesses (in-
cluding fair value adjustment on assets and 
­liabilities held for sale, if any),
•	 acquisition‑ and divestment‑related expenses 
and integration costs,
•	 certain other non‑operational items, as well as
•	 foreign exchange/commodity timing differ-
ences in income from operations consisting 
of: (a) unrealized gains and losses on deriv-
atives (foreign exchange, commodities, em-
bedded derivatives), (b) realized gains and 
losses on derivatives where the underlying 
hedged transaction has not yet been realized, 
and (c) unrealized foreign exchange move-
ments on receivables/ payables (and related 
assets/liabilities).
	

2 For a full reconcilia-
tion of ABB’s alter-
native performance 
measures, please re-
fer to Supplemental 
Reconciliations and 
Definitions, in the 
ABB Q4 2024 ­Financial 
Information on 
https://global.abb/
group/en/investors/
quarterly-results
143
ABB INTEGRATED REPORT 2024
Introduction
Value creation
Outputs and Outcomes
Good governance
Performance-based compensation
Appendix



Wkzkxsy
A
ABB Way
The ABB Way is the common operat-
ing model for our divisions, business 
areas and lean corporate center. It de-
fines “how” we create value. It is built 
around our purpose and consists of 
four elements: business model, gov-
ernance, people & culture and brand.
B
Business areas
ABB has a decentralized business 
model with 19 divisions grouped into 
four business areas: Electrification, 
Motion, Process Automation, and 
Robotics & Discrete Automation. They 
complement each other, cooperate 
and find synergies to create com-
petitive advantages and best serve 
our customers.
C
Circular economy
In contrast to a linear “take-make-
waste” model of production and 
consumption, the circular economy 
aims to keep resources in use by 
designing products for durability, 
reusability and recyclability. At ABB, 
circular economy approaches are at 
the center of the second pillar of our 
Sustainability Agenda, “preserving 
resources”. By 2030, we aim to have 
at least 80 percent of ABB’s prod-
ucts and solutions covered by our 
Circularity Approach and evaluated 
against a clear set of key performance 
indicators (KPIs), corresponding to 
each stage of the product lifecycle.
D
Divisions
Our 19 divisions represent the highest 
level of operating decisions within 
ABB with full ownership and account-
ability for their respective strategies, 
performance and resources, as they 
are closest to our markets and cus-
tomers. They are grouped into four 
business areas.
E
‘Engineered to Outrun’
In 2024, ABB launched its tagline 
‘Engineered to Outrun’ under the new 
brand positioning “We help industries 
outrun – leaner and cleaner”. It means 
keeping ABB’s partners running at high 
performance while helping them run 
more productively, efficiently and sus-
tainably so they can outperform. This 
supports ABB’s purpose of enabling a 
more sustainable and resource-effi-
cient future with its technology leader-
ship in electrification and automation.
G
Greenhouse gas emissions
Greenhouse gas (GHG) emissions 
refer to all emissions that have a 
warming effect on the earth’s surface 
by trapping heat in the atmosphere. 
The Greenhouse Gas ­Protocol, which 
sets global standards to measure and 
manage GHG emissions, covers seven 
GHGs: carbon dioxide (COF), methane 
(CHH), nitrous oxide (NFO), as well 
as gases used in industry, including 
hydrofluorocarbons (HFCs), per-fluo-
rocarbons (PCFs), sulfur hexafluoride 
(SFJ). and nitrogen trifluoride (NFG). 
COF, CHH, and NFO are released during 
the combustion of fossil fuels, such as 
coal, oil, or natural gas. At ABB, we use 
the metric ton of COF- equivalent  
(COFe) to calculate our GHG emissions 
and to measure progress toward our 
emissions reduction targets.
H
Headcount vs. FTE
Headcount and FTE (full-time equiv-
alent) are both methods that are 
used to count members within an 
organization. The key difference is 
that headcount represents the total 
number of employees that are work-
ing at an organization at any given 
time, regardless of their work status 
being full-time or part-time. It is 
mainly used in social reporting. While 
FTE is a metric that is notably used 
in financial reporting to calculate the 
total number of full-time hours being 
collectively worked across an orga-
nization, this way making employed 
persons comparable although they 
may work a different number of hours 
per week. For example, if an organi-
zation considers 40 hours per week 
as full-time, a part-time worker em-
ployed for 20 hours a week, is counted 
as 0.5 FTE or as 1 headcount.
M
Materiality
Materiality refers to the process of 
determining material information 
with regard to sustainability to be 
managed and included in reporting. 
For the fiscal year 2024, ABB con-
ducted a double materiality (impact 
materiality and financial materiality 
combined) assessment aligned with 
the ESRS requirements.
146
ABB INTEGRATED REPORT 2024
Introduction
Value creation
Outputs and Outcomes
Good governance
Performance-based compensation
Appendix


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April 17, 2025	
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