400000

Electric Vehicle Chargers

sold since 2010

24

Million Charging Sessions

By the end of 2020, ABB enabled ~24 million charging sessions by the end of 2020

58%

Reduction

ABB reduced its greenhouse gas emissions by 58%, 2013 - 2020

View Our Analysis

The Path to Drawdown: Grid Expansion

Solving climate change and remaining below 1.5ºC of global temperature increase requires a massive scaling of emissions-free energy sources. And thankfully, renewable sources like solar and wind are quickly expanding their capacity worldwide. But to reliably provide renewable energy to every household and organization in the world, we need a power grid that’s much bigger and more flexible.

The power grid is the dynamic network of electricity generation, transmission, storage, and consumption that 85% of the world relies on. But its initial design for constant, centralized power production is not conducive to the intermittency of solar and wind power. For the world’s electricity supply to become completely renewable, the power grid needs to become more adaptable than it is today. Many technologies -- constant renewables like geothermal and nuclear, utility-scale energy storage systems, batteries, and smart appliances -- contribute to grid flexibility.

The power grid also needs to expand to support a renewable transition. Where the grid spans larger geographies and more electricity sources, it can even out the total output and variability of renewables. Electricity generated in Texas during the summer can then be used to power houses in snowy Chicago during the winter. To achieve this scale, the IEA estimates that, between 2020 and 2030, around 16 million km of distribution and transmission lines need to be built, an increase of 80% compared with the past decade.

What We Want to See Improve

Shift Away from Oil & Gas Industries

ABB’s Electrification, Industrial Automation, and Motion segments serve the oil and gas industries (pp. 30-33), along with many others. While improving the energy efficiency is a win for these industries, it ultimately enables high-emitting sectors. We want ABB to focus entirely on electrifying and automating low-emission and renewable energy sectors instead.

Completely Transition to Renewable Energy

While ABB has made some headway toward switching to renewable energy in some of their facilities, they still rely heavily on fossil fuels like oil, diesel, and gas (p. 120). We urge ABB to accelerate their transition to renewable energy and become completely independent from fossil fuels as soon as possible.

Nudge Suppliers to Reduce Emissions

We commend ABB for making their Supplier Code of Conduct public and including a detailed list of expectations in it. But climate change concern is not part of this code of conduct. With ABB’s purchasing power and weight in the supply chain, we believe they can effectively nudge their suppliers to work toward becoming zero-emission companies themselves. We want to see ABB become the champion of sustainability in their supply chain.

Related Electrical Infrastructure Stocks in the Climate Index

View All Climate Index Stocks →

Allocated Company Description

4.34%

ABB Ltd (ABB)

ABB offers EV charging, solar and modular substations, distribution automation to expand the power grid. A larger grid can integrate more renewables

4.19%

Eaton Corporation plc (ETN)

Eaton offers electrical components, industrial components, power distribution for the electrical grid. Grid expansion is key for integrating renewables

1.08%

Quanta Services, Inc. (PWR)

Quanta offers engineering, construction and repair of electric grid infrastructure. Expanding the power grid is necessary for integrating more renewables

0.42%

MasTec, Inc. (MTZ)

MasTec builds the infrastructure that connects the US power generation to consumers. Expanding the grid is critical for integrating more renewables

0.42%

WESCO International, Inc. (WCC)

WESCO helps the power grid expand and adapt to a growing integration of clean energy. A key Drawdown solution for a more resilient and green grid

0.31%

Sunnova (NOVA)

Sunnova provides residential solar and energy storage systems in the United States. Both are critical for electrifying the energy system

0.17%

SPX Corporation (SPXC)

SPC makes transformers and cooling equipment for power generation and transmission - expanding the grid helps to integrate more renewable energy

0.03%

Willdan Group (WLDN)

Willdan helps utilities with new construction, improve efficiency, and demand response - all valuable in expanding and making the grid more resilient

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