Baker Hughes

Environmental accomplishments: 

In 2019 Baker Hughes was one of the first companies in the industry to commit to reducing its operational carbon emissions 50% by 2030 and to achieving net-zero carbon emissions by 2050. 

The company established a roadmap to net zero Scope 1 and 2 greenhouse-gas (GHG) emissions and identified clear pathways to achieve its commitments through the expansion of renewable energy, increased operational and energy efficiency, and a low-carbon vehicle fleet. 

Baker Hughes completed more than 230 site assessments in 2020 and more than 850 site assessments in the last two years.

The company is powering its sites with renewable and zero carbon energy. Baker has a global initiative to increase the proportion of renewable energy (including wind, solar and hydro) that it uses as well as zero carbon energy uptake across its global sites. The company also seeks to improve emissions reduction though its vehicle fleets.

Baker Hughes increased its global share of renewable and zero-carbon electricity from 15% to 22% in its most recent reporting year (2020). 

The company also established a 100% zero-emissions approach for electricity sources for all sites in the U.K. from a combination of wind and nuclear power. A three-year plan to procure additional renewable energy has been developed.

Baker Hughes plans to purchase renewable electricity for its facilities in Texas, its largest global region for energy consumption, and has fully realized the implementation of that agreement.

In June 2021, the company announced an agreement to purchase renewable energy for its facilities and operations in Russia.

Additionally, the company utilizes in-vehicle monitoring systems to track and reduce unnecessary idling. Current metrics indicate a 26% reduction in average idle time per vehicle year over year.

During 2020, the company continued its GHG emissions reduction progress, achieving a 15% reduction in Scope 1 and 2 carbon emissions compared to 2019. 

The company also reduced water use by 26% year over year.

Baker Hughes also established an employee sustainability resource group for employees to work together on environmental projects. 

Societal efforts: 

In 2020 Baker Hughes contributed the equivalent of $119 million to communities through a combination of financial contributions, in-kind donations of goods and services, and employee donations. 

Baker Hughes employees volunteered more than 7,100 service hours to community projects, despite the difficulties associated with in-person gatherings during the COVID-19 pandemic. 

Some of the projects Baker Hughes personnel participated in included virtual mentoring, environmental cleanup projects, food distribution to help those impacted by the pandemic and 3D printing personal protective equipment and medical supplies to help communities.

Baker Hughes provides ongoing training and development opportunities for its employees to learn about the company’s energy transition strategy and participate in emissions reduction opportunities through formal courses, videos and live webinars conducted throughout the year. 

Governance achievements:

The Baker Hughes executive compensation program includes short-term performance-based metrics that include ESG performance factors such as safety, environmental performance, organizational diversity, and energy transition technology. 

Baker Hughes is also deploying its existing low carbon solutions and making strategic investments in new energy frontiers, such as its acquisition of Compact Carbon Capture (3C) (November 2020); its investment into the FiveT Hydrogen Fund (April 2021); and its investment in the Electrochaea bio-methanation technology company (June 2021).

The company expanded reporting of Scope 3 emissions across its value chain to include new categories such as emissions from the capital goods acquisition of property, plant and equipment; international shipping across the Baker Hughes enterprise; waste generated from its operations; and a portion of the use of sold products. Baker Hughes also expanded reporting of other areas, such as waste, water and biodiversity.