Q&A: Erich Labuda, President of ABB Motion Services

ABB has been in the game a long, long time. The companies that merged to form ABB had been in machinery since the 1800s, meaning their experience in heavy industry has roots in the century of the industrial revolution.

Since the 1988 merger between two Swiss and Swedish giants, ABB has gone on to acquire hundreds of companies in the field, absorbing the expertise and skills of their people along the way. Now, in 2024, ABB are market leaders in electrical motion equipment, like generators, motors, drives and much more.

But when it comes to sustainability, heavy industry means heavy impact. Companies like ABB are responsible for providing the machinery that makes the world tick, so it follows that they have a responsibility to guide industry to greener (with an emphasis on green) pastures.

Erich Labuda, President of ABB, arrived at Sustainability LIVE 2024 to discuss just that. His presentation discussed circularity, zero waste principles and collaboration versus competition in the machinery industry. After his engaging speech, Sustainability Magazine spoke with him backstage.

What first interested you in sustainability?

I was always interested in sustainability. When I joined ABB, there was a slogan: “Power and Productivity for a Better World”. So I got started with that and, at the time, ABB had several assignments around micro batteries, so you learn more and more.

And then I got to go into an interesting programme about the WBCSD (World Business Council for Sustainable Development). This was a future sustainability leaders programme, so I learned even more. And once you're in, you start to figure out more and more and more, and then basically you just make your way and become an expert in the team.

What innovations or trends are you excited by in sustainability?

First and foremost, I must say: talking about sustainability. 10 years ago this talk was very, very modest and low. These days everyone is talking about sustainability. So I think the number one trend is the awareness, the public awareness all around us. People talk and people demand sustainability. Second, what I see is people chase for the best possible solution that technology offers. And specifically in my field, it's all about energy efficiency.

What are your highlights from Sustainability LIVE so far?

I had several conversations with so many attendees here in the conference, with other speakers. I think the key takeaway is really that the time is now. People aren't really talking about what we should do, they're rather talking about the how. I can really feel the vibe that we want to go into adoption mode and that feels very good.

What can events like Sustainability LIVE contribute to the broader sustainability movement?

I think the most important thing, if you really want to drive sustainability forward, is people. Such events bring the people together and there is nothing that can substitute for personal contact. So I think this is a terrific opportunity to really get connected with other experts from other industries, exchange best practices and really start benchmarking yourself: what are we doing, what are others doing? And as well, maybe learning something completely new that you didn't have at all on the radar. So, I think it’s an excellent event to really foster this collaboration.

How will sustainability practices change at ABB over the next five years?

We've set ourselves a Sustainability Strategy 2030, however, we've been making huge steps forward over the last couple of years, specifically on our Scope 1 and Scope 2 emissions which we drastically reduced while we were looking into our processes.

Second is the talk about zero waste to landfill. It's an extremely important topic for companies like us. We are committed to reduce it wherever possible by 2030 to zero. 

And last but not least, I think a topic that is yet a little bit not on the radar, but still people start to talk: circularity. I don't want to conflate it with recycling. Circularity is so much more than that.

So really thinking from the very first day on how this product can contribute to a circular society; reparability, serviceability and long lifetime is something which so far we have not enough ingrained, but we are actively driving that, not only us but as well together our customers and partners.

Do you feel like we're in a sustainable industrial revolution?

Very much so. If you just feel what's happening today, it is a revolution. Regulatory policy makers coming together, society is demanding it. I would say if it's not a revolution, at least it's a movement.

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