The ABB Group buys parts and raw materials worth $15 billion a year from thousands of suppliers around the world. Cost, quality and prompt delivery are key selection factors – and so are sustainability criteria.
As a general objective, ABB wants to do business with suppliers who have implemented environmental and health and safety management systems, complying with the requirements of ISO14001 and OHSAS 18001 and who observe internationally recognized social and human rights standards and norms.
Under ABB’s Supplier Qualification Self-Assessment Process, all first-tier suppliers must identify and document the significant environmental aspects and Occupational Health & Safety risks in the scope of their supply to ABB, including the roles of sub-suppliers. They must also implement controls to eliminate or reduce these risks.
ABB maintains appropriate procedures to evaluate and select first-tier suppliers and subcontractors on their ability to meet the requirements of ABB’s social policy and principles, and to maintain reasonable evidence that these requirements are continuing to be met.
Where necessary, ABB provides training to ensure that suppliers reach and maintain ABB’s sustainability performance standards. Once accepted as main suppliers, they are subjected to further monitoring of their sustainability performance.
One of ABB's current sustainability objectives for the next two years is to increase the monitoring of its key potential and existing suppliers to ensure they meet national and international standards.