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Identifying material ESG priorities
In 2019 Baker Hughes conducted a materiality assessment to identify the ESG topics that most critically impact its business and are of interest to external stakeholders. As part of the assessment EY consolidated on our behalf input from in-person interviews, focus groups, surveys, and publicly available data. The perspectives of customers, competitors, shareholders, employees, the Baker Hughes board of directors and non-governmental organizations are reflected in the materiality matrix below.
The materiality assessment represents a snapshot in time aligned with our 2019 reporting boundary. Since the assessment was conducted, important world events have occurred which impact our view on our material ESG priorities, such as the COVID-19 pandemic and protests in support of racial equality in the U.S. We intend to refresh our materiality assessment prior to our next report to reflect the increasing importance of issues like safety, health, and human rights to our stakeholders and the company. We share our perspectives on these important issues in this report although they fall outside our 2019 reporting boundary - under the heading of “A Look Ahead to 2020”.
Materiality matrix
Aligning with our strategy
Guided by our corporate purpose and our core values, Baker Hughes’ corporate responsibility framework of People, Planet and Principles guides our responsibility to sustainable operations and enables us to realize our energy technology strategy.
Our sustainability framework
OUR MATERIAL PRIORITIES
As identified by our materiality assessment
OUR REPORTING FRAMEWORKS
United Nations Sustainable Development Goals / SASB / GRI-Core
Alignment to United Nations Sustainable Development Goals
In October 2019 Baker Hughes became a signatory of the UN's Global Compact - a voluntary leadership platform for the development, implementation, and disclosure of responsible business practices. Baker Hughes takes a leadership position in its industry sector by making this commitment.
Baker Hughes is committed to supporting and reporting its progress toward the Ten Principles of the United Nations Global Compact on human rights, labor, environment, and anti-corruption, as well as the Sustainable Development Goals.
Our approach to stakeholder engagement
Engaging with diverse stakeholders causes us to consider all perspectives of our operations and that we identify the most significant ways we impact the world. In 2019 we conducted a variety of engagements, including a formal materiality assessment, to align our priorities with our stakeholders.
Looking toward 2020, many of our traditional stakeholder engagement methods that depend on face-to-face meetings and conferences are being moved to virtual or electronic formats. We nonetheless remain committed to seeking diverse viewpoints and perspectives.
STAKEHOLDERS
FORM OF ENGAGEMENT
FREQUENCY
Customers
Global, regional and local industry events, forums, and conferences
Proprietary company events and meetings
Partnerships and working groups to advance best practices
Our senior leaders and commercial teams actively participate in hundreds of customer events and meetings across the globe.
Investors
Public quarterly earnings calls
Annual shareholder meeting
Executive meetings, presentations, and operational tours
Outreach program led by our Investor Relations group, the Corporate Secretary's Office, and Executive Compensation Team
We inform our investors and analysts about our operations formally on a quarterly and annual basis, as well as proactively engage in year-round integrated outreach, to monitor developments in corporate governance and sustainability.
Employees
Culture and pulse surveys
Town hall meetings
Interactive online forums
People leader engagement
Employee Resource Groups, many with senior leader sponsors
CEO’s Employee Pulse Group
We exchange ideas and feedback with our employees across a wide array of communications channels weekly, monthly, quarterly, and annually.
In 2019 more than 18,000 employees participated in our inclusion and diversity pulse survey.
Governments
Formal and informal bilateral meetings with public officials at all levels of government
Lobbying and other direct engagement in compliance with applicable laws and regulations
Given the breadth and scope of our industry and the global footprint in which we operate, Baker Hughes senior leaders across our operations engage with public officials at all levels of government on a regular basis.
Community
Civic engagement through economic development groups, chambers of commerce and related forums
Collaboration and social investments where we operate and in support of broader society
We have ongoing dialogue with community partners on charitable projects and planning for employee volunteerism, and weekly as employees hold positions with local groups.
Policy groups and industry associations
Membership participation across the globe
Working groups, committees, and public-private partnership activities in industry groups and associations
Leadership and committee positions that extend and strengthen organizational capabilities
Our participation in industry groups includes monthly, quarterly and annual meetings, events and engagement to advance best practices and policy positions.
Universities, Institutions, and NGOs
Connections, collaborations and partnerships on a variety of shared business, industry, social and environmental interests globally
We participate in multiple opportunities to collaborate with institutions and organizations on public policy, regulations, technology roadmaps, and a variety of research projects.