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

Materiality Matrix

ESG Material priorities graphic

 

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.