Sustainability across ABBOTTs supply chain

Our Approach

As a key aspect of our business, Abbott proactively manages our supply chain to amplify our positive impact on the world. We work to nurture a global supplier network that is strong, responsible, and resilient.

An effective supply chain begins with strong supplier relationships, which are governed by our Supplier Guidelines.

Abbott’s Supplier Guidelines document the principles, standards, and expectations for establishing and maintaining a business relationship with Abbott. The Abbott Supplier Guidelines align with internationally recognized and industry-accepted standards, such as the Pharmaceutical Supply Chain Initiative (PSCI) Principles for Responsible Supply Chain Management. Abbott’s Purchase Order Terms & Conditions and Contractual Clauses also incorporate our Supplier Guidelines.

We expect our suppliers to abide by these expectations in their business with Abbott.

To access Abbott’s Supplier Guidelines, please follow these links (English, Chinese, French, Spanish).

In addition, we encourage suppliers and other third parties to use our Speak Up tool to report concerns related to human rights, labor management, worker safety, and environmental matters in Abbott's supply chain. Please contact our team at supplier.sustainability@abbott.com with any questions.

Supply chain sustainability due diligence program

We have global policies and procedures for evaluating suppliers for potential sustainability issues in their operations, including those related to human rights and labor, health and safety, environment, and management systems. These policies guide Abbott’s supply chain sustainability due diligence throughout our relationship with a supplier. We maintain a risk-based supplier assessment process considering factors such as supplier size, industry, and sourcing location(s).

Partnering for supply chain sustainability

Our supply chain initiatives drive collective action to address shared sustainability impacts, prioritizing regulatory compliance, responsible sourcing, and continuity of supply.

As part of our 2030 Plan, Abbott is partnering with key suppliers to create a resilient, diverse and responsible supply chain, including:

Scope 3 Carbon Emissions

2030 Target: Abbott’s science-based target (SBT) commits to reduce absolute Scope 1 and 2 carbon emissions by 30% from 2018 baseline by the end of 2030 along with committing that 82% of our suppliers by emissions covering purchased goods and services and upstream transportation and distribution will have science-based targets by 2026. This target is consistent with the objectives of the Science Based Targets initiative (SBTi).

In 2022, the SBTi approved Abbott’s Scope 3 target. Scope 3 emissions account for more than 90% of Abbott’s carbon footprint. As part of our 2030 strategy, Abbott committed to engage our key carbon-intensive suppliers to implement sustainable programs to reduce our Scope 3 emissions. Learn more about the SBT Initiative and setting a SBT here.

Water Management

2030 Target: Abbott has committed that we will work with 50 key suppliers in high water-stressed areas to reduce water quality and quantity risks to Abbott and the community.

We expect our suppliers to be transparent in their water management practices and to embed sustainable water management principles into their own operations and supply chains, as established in Abbott’s Supplier Guidelines. Abbott’s supply chain water resilience is assessed regularly using resources, such as the WRI Aqueduct tool, along with supply chain risks associated with global water use.

Inbound Materials

2030 Target: Abbott has committed to engaging with key suppliers to reduce the environmental impact of materials sent to Abbott that become waste in our operations as part of our circular economy approach.

We work with key suppliers on waste diversion initiatives for both the waste we generate in our operations and the inbound materials that become waste. We’re also engaging suppliers in our efforts to lower the impact of packaging as part of our circular economy approach – see Sustainable Packaging section below.

Packaging

2030 Target: Abbott has committed to addressing 50 million pounds of packaging through high-impact sustainable design programs that employ circularity principles by 2030.

We are continually assessing design and manufacturing processes to enhance our packaging — balancing the need for protecting the product with protecting the planet. Recognizing the impact our packaging can have on the environment, we’re designing for recyclability, efficiency, and increasingly positive impact. To support these efforts, we engage suppliers in our sustainable packaging efforts.

Building a More Resilient Supply Chain

2030 Targets: Certify that newly contracted direct material spends incorporate responsibility requirements; ensure ethical sourcing from all suppliers with high-risk sustainability factors through 100% auditing; continue to help safeguard our supply chain to mitigate single-source and supply shocks; increase small business spend to support supply chain strength and resilience.

Abbott operates against a changing geopolitical and environmental backdrop. We continually monitor issues that could impact our operations and those of our suppliers, including political instability, acute and chronic weather events, labor shortages, and strength of local infrastructure. To accelerate recovery following disruptions, we must have an in-depth understanding of our extended supply network.

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