ABB Ltd is a global provider of power and automation technologies to utility and industry customers. The Company serves electric, gas and water utilities, as well as industrial and commercial customers, with a broad range of products, systems and services for power transmission, distribution and power plant automation. It operates in approximately 100 countries, and has structured its global organization into four regions: Europe, the Americas, Asia and the Middle East and Africa (MEA). The Company operates in five divisions: Power Products, Power Systems, Automation Products, Process Automation and Robotics. In November 2007, it completed the sale of Lummus Global (Lummus) to Chicago Bridge & Iron Company (CB&I). In April 2007, it completed the sale of Building Systems business in Germany. In May 2007, the Company completed the sale of Jorf Lasfar, a power plant based in Morocco and ST-CMS Electric Company Private Limited (Neyveli), a power plant in India.

Criticism

Business Ethics

• ABB under bribery scandal"Investigations into alleged bribery by ABB officials in Romania continue as police and the Anti-Corruption Prosecution Office interview people both here and in Sweden into kickbacks amounting to an estimated 520,000 Euro, media reports say…Peter Fallenius, former manager of an ABB division in Romania, said recently that he used trips abroad and expensive gifts to bribe Romanian officials in the name of his company"
• ABB Expects Big Hit from Governance Investigation, Looks to Cut Costs"Disclosure of the suspicious activities at the heart of the corruption probes dates back to mid-2007, when ABB sold its Lummus Global unit. At the time, ABB divulged that its due diligence in preparing for the divestiture had unearthed "certain suspect payments in a number of countries." "
• MALAYSIA: Dirty Dam Draws Dirty Smelters"Transnational aluminium smelters, some teaming up with Malaysian partners, are beating a path to eastern Sarawak state with an eye to surplus power from the problem-ridden Bakun Dam. The much-delayed dam in Sarawak, on Borneo island, was originally scheduled for completion in 2003…environmentalists worry about the impact that the dam, and now the smelters, would have on the environment…Last year, over 40 smelters stopped production in China due to higher costs and government moves to curb pollution…The 2,400 megawatt Bakun hydroelectric dam project was approved by the administration of former premier Mahathir Mohamad in 1994, amidst an outcry that the dam would submerge rainforests covering an area the size of Singapore and displace thousands of indigenous people…Local firm Ekran was awarded the contract to manage the project while the construction contract went to the Zurich-based multinational Asea Brown Boveri (ABB)."
• ABB probes suspected bribery cases"An investigation into suspected bribery by ABB – the second case involving a major European engineering firm – shows the difficulty of eradicating decades-old corruption to win foreign contracts. In an echo of the scandal at Germany's Siemens, Swiss-based ABB said yesterday it was probing suspect payments made abroad by some of its employees."
• CorpWatch Supports Removal of Goran Lindahl from UN Global Compact Post"Earlier this month, Swiss-Swedish multinational energy giant Asea Brown and Boveri (ABB) revealed that former CEO Mr. Lindahl, along with his predecessor Percy Barnevik, had taken retirement packages totaling about US$137 million, about $53 million of which went to Mr. Lindahl."

Human Rights

• ABB’s operations in Sudan"Investors in ABB stock in the United States, Switzerland and Sweden expressed concern in 2005/6 about the company’s presence in Sudan, in view of the ongoing atrocities in the western Darfur region. In some cases this was accompanied by a threat of stock divestment and a demand to pull out of the country (see 6.c below). The accusation was that presence in the country amounted to support for a government which the US administration had branded as responsible for "genocide"…NGOs, particularly the International Rivers Network, opposed the Merowe Dam project for a number of reasons. The dam would displace 50,000 ethnic Amri people; there were allegations of forced movement, inadequate compensation and poor agricultural conditions in their new home areas; in addition, IRN pointed to environmental damage caused and the flooding of a significant archaeological site by the proposed dam."

Political Influence

• ABB Lobbying Spending Database"Total Lobbying Expenditures: $120,000"

• In July 2004, ABB subsidiaries settled charges by the US Securities Exchange Commission and Department of Justice for illicit payments associated with the company's operations in Nigeria. (ABB Ltd. was subject to the Foreign Corrupt Practices Act’s books and records provisions as a company listed on U.S. exchanges.) Its subsidiaries were charged with bribery, and ABB itself was charged with failing to maintain adequate internal controls. The company paid a $5.9 million civil penalty. Two subsidiaries paid a total $10.5 million criminal penalty. http://www.crocodyl.org/wiki/abb

Praise

• ABB Helps Inner Mongolian Environmental Project"ABB China and Erdos Electric Power Bureau jointly held an inauguration ceremony for anti-desertification project phase I. The project started in 2007 and will last for three years.It will be carried out by ABB China, Inner Mongolia Electric Power (Group) Co., Ltd and its subsidiary Erdos Electric Power Bureau, aiming to improve Inner Mongolia's environment and to build a green barrier for Beijing. The anti-desertification project adopts eco sand barriers and planting trees and grass to fix sand hills. It is predicted the project phase I will increase vegetation coverage in the summer to 65% and above; and vegetation coverage will steadily remain at 50% one year later. In the next two years, ABB and EEPB will further their cooperation and carry out projects phase II and phase III. Sand in an area of 10,000 Chinese acres is expected to be brought under control when the whole project is finished."

• ABB Lummus Global, Inc. is involved in a number of fossil fuel-based power plant projects around the world, including the Sual 1,200MW coal-fired power plant (Philippines), the Limay 600MW oil-fired power plant (Philippines), the Jorf Lasfar 700MW coal-fired power plant (Morocco), the Paiton and Jawa power complex (3,280MW coal) (Indonesia), Azito 300MW gas-fired power plant (C'ote D'Ivoire), Termobarranquilla 980MW gas-fired power project (Columbia), and Phu My 2 (phase one and two) 1,165MW gas-fired power plant (Vietnam). (For more information see the Sustainable Energy and Economy Network).

Subsidiaries and Affiliates

ABB, Inc. ABB AG ABB Contracting Co. LTD ABB Holdings, Inc. ABB Limited

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