Taking energy forward
In a pivotal moment for our company, we relaunched in 2019 as an energy technology company, committed to making energy safer, cleaner, and more efficient for people and the planet. It was a declaration of our commitment to use our talents, technology, and resources to drive real change in the energy industry and the world.
We view environmental, social, and governance (ESG) as a key lever to transform the performance of our company and our industry. Over the last year we enhanced our programs and commitments, and have increased the transparency of our reporting.
The dual challenge of energy and climate
The collective action of people and industry, when directed with purpose, can enable change on a global scale. The dual challenge of energy access and climate change is one of the greatest issues facing our world. That is why Baker Hughes has committed to achieve net zero carbon emissions from our operations by 2050, and develop new solutions to help the oil and gas industry reduce carbon emissions across the entire value chain.
Through year-end 2019 our Scope 1 and 2 carbon equivalent emissions are 31 percent lower than our 2012 baseline. Emissions increased slightly over the prior year primarily driven by an increase in activity and expanding the boundary of what is reported in our Scope 1 emissions. However, most of these increases were mitigated through energy efficiency improvements and emissions reduction projects around the globe; from facility upgrades, to renewable energy projects, to logistics improvements. We will continue to take aggressive actions that will support us on our journey to net zero.
Leading with technology
Our commitment to innovation has led to many high efficiency product and service offerings that are helping customers reduce emissions in the field today. We are investing in new technologies, products, and services that advance our industry in cleaner energy, from carbon capture and storage to hydrogen-fueled turbines that will help the industry continue to innovate toward a net zero future. We are bringing the latest technological advances forward to solve some of our industry’s toughest challenges. In 2019 we announced partnerships with C3.ai and Microsoft to bring enterprise artificial intelligence (AI) solutions to the energy sector. By combining data, analytics, and industry expertise, we will enable our customers to improve safety, reliability, and sustainability.
An inclusive workplace
People are the key to achieving our vision of a cleaner energy future for everyone. Innovative minds, engaged people, and diverse perspectives will be needed to meet the world’s pressing energy challenges. We build and reinforce our culture every day by operating ethically and responsibly. Baker Hughes provides learning and development opportunities within an inclusive work environment, as we cultivate the next generation of energy leaders. Our commitment to diversity and inclusion extends to working with our suppliers and partners and our local communities. A company with bold ambitions must look beyond its walls and positively influence the entire ecosystem of stakeholders. That is how we are leading the energy transition for our teams and our partners.
Leading with resilience
The COVID-19 pandemic and accompanying economic slowdown in 2020 has brought many challenges to our society and our industry. I am proud of the resilience that Baker Hughes employees have shown in taking care of each other, supporting our customers, and contributing to our communities. You’ll learn more about our efforts in this report, from developing remote operations to innovating new techniques for printing protective equipment and ventilator parts for local hospitals to enhance their capacity to treat people with COVID-19. We are all finding new ways of operating while remaining true to our commitment to health, safety, and ethical principles.
We approach the challenges of our time with a spirit of resilience and an eye toward the future. Baker Hughes remains firmly committed to our core principles and our vision of a cleaner, more efficient, more sustainable energy future. Our people and our partners will help us get there, and we value the contributions that each and every person is making to move us forward. I hope you’ll join us on our journey.
Chairman and CEO