3.   Would the NT2 dam and the International Rivers letter pose a reputation risk for ABB?

Why or Why not?

Ans: Yes, Although NTPC is the major player in the project, earning revenue from the business makes
ABB responsible for the implications of the project.
>ABB is already a standard setter in sustainability when they help establish ISO 4001 and hence, they will
be under greater scrutiny by media and NGOs.
>Though sustainability measures were included in the project, the letter outlined violations of
concession agreement and resettlement policy outlined by the World Bank. This included violations of
provision of clean water supply, prior compensation and provision of irrigation system. Getting
associated with a project violating norms outlined by a major organization like the World Bank will hurt
its reputation.
>There is also a possibility that their past hydel projects such as the Three Gorges Project will come
under scanner.
> Existing and future clients and shareholders who value sustainability and environment friendly
practices might lose their trust in ABB eventually leading to a loss of business.