ABB in Southern Africa SUSTAINABILITY PROFILE

Transcription

1 ABB in Southern Africa SUSTAINABILITY PROFILE

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3 In 2002, as the UN hosts the World Summit on Sustainable Development in Johannesburg, South Africa, ABB has undergone a profound transformation of its entire operations to make it more responsive to our customers needs with a continued effort on sustainability. ABB is already a leading supplier of many of the new alternative technologies, including microturbines, cogeneration systems and wind-powered generators. ABB believes that global poverty is the greatest threat to the stability in the world. Being a good corporate citizen is a vital component of the ABB philosophy. Far from being a soft issue grounded in emotion, sustainable development involves cold, rational business logic. THE ABB APPROACH TO SUSTAINABILITY The group operates in more than 100 countries where it employs people, of them in developing countries. The support of its stakeholder base including employees, customers, society and shareholders is crucial. We in ABB support global efforts to promote sustainability, and we will take part in discussions in Johannesburg. But we can do more than talk. Jörgen Centerman, ABB President and Chief Executive Officer, ABB Sustainability Report, 2002 ABB, the global leader in power and automation technologies, has played a pioneering and active role in spreading the message of sustainable development throughout the world over the past decade, following the signing of the historic UN Declaration on Environment and Development by world leaders in Rio de Janeiro, Brazil. An early mover, the group also led the way in incorporating the principles of sustainability into all its operations and decision-making processes when it formed an Environmental Advisory Board in The same year, ABB signed the International Chamber of Commerce Charter for Sustainable Development. For ABB, sustainable development involves working in three dimensions; environmental, economic and social. The right balance will ensure the group s prosperity and improve the quality of life in the communities in which it operates. Over the past decade, ABB has taken part in a number of global sustainable development initiatives. For example, in 2000, the group participated in the launch of the United Nations Global Compact with nine principles of good behavior for a global corporate citizen. The following year, ABB signed up with e-mission 55 an international business initiative which calls on governments to ratify the Kyoto Protocol without further delay. Within its own operations, ABB believes that enhanced environmental performance to develop eco-efficient products increases competitiveness through optimum design, lower costs and desirable clean products. The ISO Environmental Management System has been implemented in almost all the group s 551 sites throughout the world.

4 In addition, ABB publishes Environmental Product Declarations (EPDs) for a growing number of core products. The goal is to develop EPDs for all core products. An EPD quantifies a product s environmental performance over its entire life cycle, based on a formal Life Cycle Assessment (LCA). LCA is a tool to define the environmental impact during the product s whole life cycle, from cradle to grave. Last year, ABB launched its new social policy, following unprecedented consultations that included 45 round-table discussions with stakeholders in 34 countries. The group published its first Sustainability Report structured according to the recommendations of the Global Reporting Initiative (GRI) an international multi-stakeholder initiative. The GRI guidelines are based on a triple bottom line reporting concept that measures environmental, economic and social performance. These efforts aimed at achieving a high level of environmental awareness throughout ABB and firmly ingraining sustainability principles into the group s culture have been recognised by international rating agencies. The Dow Jones Sustainability Index has ranked ABB at the top of its industry group for three years running. ECONOMIC CONTRIBUTION Corporate Social Responsibility is the commitment of business to sustainable economic development, working with employees and their families, the local communities and society at large to improve their quality of life. World Business Council for Sustainable Development After a decade in Southern Africa, ABB has made a significant contribution towards supporting sustainable economic development in the region. ABB established a formal presence in South Africa in 1992, following the lifting of international sanctions against the country. Today, the company is making a major economic contribution towards the development of economies within the Southern Africa Development Community (SADC) regional block, which has a population of more than 120 million. Over the past decade, ABB has invested hundreds of millions of rands in Southern African manufacturing facilities, participated in many of the major infrastructure development projects in the region, and created thousands of jobs that have sustained households, many of them in poor areas. The group s high technology products and know-how have helped to improve the competitiveness of its customers in the region. ABB s global strategy focuses on developing a local presence in all its markets, including Africa. Our operations are staffed by local people who are committed to growing our business while contributing to economic development. Our vision is to create value for customers, employees, shareholders and the communities and countries where we operate by living our commitment to sustainable development. With more than employees in South and Southern Africa, ABB is committed to the development of the region. It shares the vision of infrastucture development in the region, and is well positioned to deliver world-class technologies and skills to make this dream a reality. Within Southern Africa, ABB has offices in Angola, Botswana, Lesotho, Malawi, Mozambique, Namibia, Swaziland, Zimbabwe, Zambia and the Democratic Republic of the Congo. The main business is power and automation technologies for utilities and industries. ABB is working with Southern African utilities to realise the goal of a regional power grid that will bring the benefits of affordable electricity to all parts of the subcontinent. The group contributes to the region by developing the excellence of its people and transferring technology and know-how to its local operations and joint ventures. The Southern African operations have access to the latest innovations emanating from the ABB Group s $654 million research and development budget that is used to finance the activities of more than 1200 researchers at eight corporate centres throughout world. In South Africa, which is playing a critical role in the new continental economic renewal plan, ABB has revenues of close to R2bn and employees at nine sites in Johannesburg, Alrode, Midrand, Pretoria, Durban, Cape Town and Botshabelo.

5 ABB has led the way with such initiatives because it understands the nature and scale of the sustainability challenge in South Africa, a country that emerged eight years ago from apartheid policies that prevented black people from participating fully in the economic mainstream. In addition, new emerging forms of inequality due to globalisation could exacerbate the situation and lead to unsustainable levels of marginalisation, vulnerability and poverty. Reversing this legacy is a mammoth task. ABB s contribution has been to forge partnerships with local entrepreneurs, community organisations, governmental and non-governmental organisations and international agencies who share our commitment to sustainable development. The economic contribution in South Africa includes a number of initiatives aimed at increasing the participation of previously disadvantaged people in the economy, a process that is called Black Economic Empowerment (BEE). The ABB group, through its specialist airports management company, Primkop Airport Management, has recently invested R350 million of its own resources to build the Kruger Mpumalanga International Airport (KMIA), which is situated near to the world-famous Kruger National Park. The development, ABB s biggest ever single investment in South Africa and the group s first wholly-owned airport in the world, has kick-started a cycle of sustainable development with 750 people, most of them from a poor local community, employed during the peak phase of construction. In terms of a unique social contract, the local Mbuyane community has a 10% stake in the development; it will also receive a fee for each departing passenger. If traffic projections reach the expected passengers a year, the community could earn other significant funds to invest in a range of development projects. ABB has been at the forefront of BEE and created new economic opportunities for black people in South Africa through a number of policies, programmes and actions. The company has: Initiated negotiations with a black investor to take a 20% stake in ABB s South African holding company. This transaction will ensure that a portion of the economic value from the company s activities in Southern Africa accrues to previously disadvantaged black people. Established joint ventures with emerging black companies, which have created new, globally competitive engineering businesses. In 1997 formed the first BEE company in high voltage technologies, ABB Karebo Manufacturers. Other joint ventures established include Desta Power Matla (distribution transformers), together with ABB Powertech Transformers, and ABB Kutlwanong (plastic enclosures). A high level of affirmative procurement across all of its divisions. The policy encourages procurement of services and products from mostly small and medium-sized companies. ABB has encouraged people from within and outside the company to start their own businesses. Upgraded the skills of its employees through adult basic education and training (Abet) and skills development. An in-house literacy programme has taught more than 100 employees to read and write, which has opened up opportunities for further training and career development. A comprehensive employment equity programme fast-tracks the development of black managers and engineers within the company. The employment equity programme supports the objectives of new legislation which has been introduced to accelerate progress towards a workforce that reflects the composition of South African society.

6 technology and not just money through innovative partnerships with government departments, community organisations and other companies who support our objectives. A Corporate Social Investment Forum, including ABB employees and representatives of community-based organisations, meets regularly to review progress, identify priorities, set criteria for evaluating projects and generate new ideas for future action. A number of key principles underpin ABB s corporate social investment activities. There must be maximum efficiency of investment, which means that ABB will not advance funds for salaries, administration and other overhead costs. The money must go to the people who need it. The other emphasis is on sustainable projects that can eventually stand on their own, without the support of ABB, and develop entrepreneurs, managers and workers in areas where there was previously high levels of unemployment and poverty. In all projects, ABB adopts a hands-on approach; we help to co-ordinate and manage activities. ABB intends to implement its social policy thoughout its global organisation and by doing so help raise quality of life wherever we have a presence. ABB Sustainability Report, 2002 SOCIAL CONTRIBUTION In 2001 the group launched a comprehensive social policy after 45 round-table discussions in 34 countries. The social policy, which commits ABB to conform to 13 social performance principles, will be implemented in all the group s operations. ABB also has an ethics policy, which commits the company to uphold the highest standards in business ethics. Despite having the largest economy in sub-saharan Africa, South Africa has massive inequalities of income, and huge social and infrastructure backlogs, which can only be confronted through joint actions and partnerships between all stakeholders, including government, the private sector and community-based organisations. ABB South Africa s corporate social investment projects, which have been formally running since 1994, have made a difference in the lives of thousands of people, many of whom live in communities with high rates of unemployment and poverty. The projects have helped to restore hope in communities that only knew despair. At ABB, we believe that we can achieve the best results by leveraging our resources our people, management skills and There are two distinct types of corporate social investment projects: those aimed at our own employees, their families and the communities where they work; and those that are directed at South African society at large. For our employees, there are a number of projects, ranging from providing support to schools attended by the children of ABB employees to Internet Cafés at our facilities and adult basic education and training (ABET). For society at large, the projects are divided into two main areas: education and training for employment, and community support. In education and training for employment, the emphasis is on income-generating projects that will restore the dignity of the unemployed through training and after-care that equips them with the basic skills to start a business. ABB has supported Lungisa (which means fix it in Nguni languages). This is an innovative project that empowers unemployed and disabled people by giving them the technical training to open their own businesses, repairing household appliances and welding. In community support, ABB has assisted Conquest for Life in Westbury Township near Johannesburg. The project is aimed at unlocking the potential of the youth by encouraging them to adopt positive lifestyles and reject the negative influences of violence, gangsterism and drug abuse. The ABB Group has published a photography book entitled What is knowledge? to raise funds globally for an HIV/AIDS related project in the country. Further funds have been raised by ABB to support an AIDS orphans project. ABB South Africa has also sponsored several graduate students to attend a post-graduate diploma in HIV/AIDS at Stellenbosch University and Medunsa University.

7 In 2000 the ABB Group undertook a case study of their social contribution and its impact on their employees, employees families and the community at large. ABB South Africa embarked on a detailed case study together with the University of the Witwatersrand Environmental Engineering department. The case study was published in the group s annual Sustainability Report for ENVIRONMENTAL CONTRIBUTION I have always maintained that we cannot have a filthy African Renaissance, and that efforts to look for alternatives to highly polluting methods is part of our revival as a continent. SA Minister of Environment and Tourism, Mr Valli Moosa, July 2000 One of the priorities of ABB is to extend its environmental policy and management systems to all employees and activities throughout the world, including South Africa. In 1992 ABB signed the International Chamber of Commerce (ICC) Charter which was the start of its global environmental programme. The programme focused on sites and their certification to ISO environmental management systems. Presently we have more than 98% of sites globally (539) that have full environmental management systems and are externally certified. In addition to our site programme ABB has also focused on its products through the Environmental Product Declarations (EPDs), which is a tool that communicates our environmental performance. The information in the EPD is based on life cycle assessments and is certified by external authorised bodies. ABB South Africa has followed the example of its global parent in adopting policies to ensure that it maintains worldclass environmental standards. Our implementation of good environmental practice runs well ahead of South African legislative requirements. It involves extensive dialogue with customers, suppliers, the community at large and government to integrate the environmental component of the company s triple bottom line with the social and economic aspects. The result is unique policies that are appropriate in a South African setting. ABB has emerged as a leader in environmental care and social responsibility in South Africa. It has won two awards as the best company in South Africa in its industrial sector for environmental care and Black Economic Empowerment (BEE) from Professional Management Review. Six of ABB s eight operations in South Africa have already achieved ISO certification for environmental management. The remaining two sites have EMS systems in place and plan for certification. The ISO environmental management system has 39 operational performance indicators to: Reduce demand on resources Phase-out unwanted substances Reduce emissions and waste Identify potential hazards; and to Optimise recycling One of the ABB companies that have achieved ISO certification is ABB Karebo Manufacturers the first Black Economic Empowerment (BEE) company in the field of electrical

8 engineering to achieve the certification. Compliance with the ISO significantly adds to ABB s competitiveness and enables exports to a number of new potential markets. ABB also takes great care to minimise the environmental impact of its infrastructure projects. An example is the R350 million Kruger Mpumalanga International Airport that the company is building near Nelspruit. As part of the preliminary work on this project, ABB did extensive environmental impact studies that went far beyond the requirements of the law. ABB South Africa is also supporting Bonesa, a project that reaches 450 schools throughout the country and educates schoolchildren about energy efficiency. This Legacy Project will have a lasting impact on the country long after the World Summit on Sustainable Development. ABB has a common efforts programme which it drives worldwide. The key programme is Access to Electricity that will help to make a contribution towards improving the quality of life of people throughout the world. ABB is a global leader in power and automation technologies that enable utility and industry customers to improve performance while lowering environmental impact. ABB has 150,000 employees in more than 100 countries. ABB in South and Southern Africa Head Office Private Bag X37 Sunninghill 2157 Johannesburg South Africa ABB in Southern Africa employs people and has operations in Angola, Botswana, Lesotho, Malawi, Mozambique, Namibia, Swaziland, Zimbabwe, Zambia, and the Democratic Republic of Congo. In South Africa the group has several empowerment companies in the areas of high voltage switchgear, distribution transformers and electrical enclosures. Tel: Fax: