Board governance

Building on a strong foundation, we took important steps during the year to advance our sustainability strategy and programs, engage employees, and make significant progress on our most important priorities. Some of the highlights you will see in this report include:

Expanded Emissions Reporting

Expanded emissions reporting

We expanded our Scope 3 value chain Greenhouse Gas (GHG) emissions reporting for the year to include four new categories, as well as an expanded view of emissions from the use of our products and services. This is a major step forward in understanding the full lifecycle emissions of our company and augmenting our efforts to develop lower-emissions products and services. We have also established a process to ensure that emissions reduction claims for our products and services are verifiable and based on established methodologies. This allows us to better inform, align, and support our customers in their energy transition journey.

Improving data governance and assurance

Recognizing the increasing importance of sustainability data for stakeholders, we undertook a data governance project to improve the quality and rigor of our disclosures. Greater automation and leading data governance practices will improve our ability to deliver accurate information, make business decisions, manage risk, and act on sustainability data at all levels in the company. We have expanded our third-party assurance to include reasonable assurance of Scope 1 and 2 emissions, as well as limited assurance of Scope 3 emissions and select People data.

Taking carbon out of our business

Taking carbon out of our business

We have reduced our Scope 1 and 2 GHG emissions by 23% compared to our 2019 base year. We’ve transitioned to systemic action across our organization. In our 2020 Report, we shared our Net-Zero Roadmap with key decarbonization pathways for achieving a net-zero transformation by midcentury. The roadmap to net-zero GHG emissions requires a fundamental change in mindset and the engagement of every person in the organization. This year we moved into the execution phase of our net-zero emissions strategy by launching an ambitious Carbon Out program across our global business. Through our Carbon Out program, we are empowering each Baker Hughes employee to take an active role in our goal of achieving net-zero carbon equivalent emissions by 2050.

Expanding our DEI programs and disclosures

Expanding our DEI programs and disclosures

Recognizing the importance of diverse teams and an inclusive culture in driving innovation and competitiveness, we expanded our programs and processes to embed DEI into our operating process. For the first time, we also published the 2020 Equal Employment Opportunity (EEO-1) data in 2022 and invited our employees to self-identify their demographic data in our human resources system. The 2021 Equal Employment Opportunity (EEO-1) Report was published in June.

Collaborating with customers and suppliers

Collaboration across the value chain is crucial to building strong sustainability performance. Throughout the year we have found new ways to partner with customers and suppliers to mutually improve performance — not only on climate and environmental metrics but also on DEI, supplier diversity, safety and health, and human rights.

Ensuring alignment with stakeholder groups

We actively engage with stakeholder groups and industry organizations to share knowledge, advocate for policies, and advance strategic partnerships. Over the past 18 months, we have conducted a thorough review of partner organizations to ascertain whether they are aligned with our corporate purpose and net-zero emissions ambitions. We have identified and are not active in organizations that are no longer aligned to our corporate purpose and have identified new partners in the areas of hydrogen, CCUS, and climate science. We will continue to evaluate our strategic stakeholder relationships on an annual basis going forward. These are just a few of the many actions we have taken over the last year to make Baker Hughes more sustainable, more transparent, and more accountable. We will continue to build on this progress and are committed to continuous improvement. If you have a question about this report or any of our disclosures, I encourage you to reach out to me or a member of our leadership team.

Allyson Anderson Book

Vice President, Energy Transition and Sustainability Steering Team Chair

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