Energy and climate
Baker Hughes supports the objectives of the Paris Climate Agreement, and we believe that the private sector has a crucial role to play in limiting the global temperature rise to 1.5-degrees Celsius. We are committed to reducing our GHG emissions, advancing the energy transition, and enabling the global shift to lower carbon industries, infrastructure, and value chains.
It is a priority for us to innovate—to offer lower carbon products and services, improve our operational efficiency, and reduce our emissions. We are actively engaged in helping our customers meet their carbon and methane emissions reduction goals. We advocate for policies and technology that we believe will advance the energy transition such as CCUS, hydrogen, carbon pricing, and methane emissions reduction.
In 2019, we were among the first companies in our industry to commit to achieving net-zero Scope 1 and 2 emissions by midcentury. In this report, we are outlining the core elements of our net-zero roadmap that will help us deliver on this commitment. Our commitment to climate action and the energy transition is a core part of our company’s growth strategy, and we will continue to embed these actions into our operating model and across our product companies.
Our net-zero roadmap is based on nine key building blocks necessary to achieve net-zero Scope 1 and 2 carbon emissions by 2050. This includes defining and operationalizing our efforts for the enterprise transformation, implementing a comprehensive sustainable supply-chain framework, and continuing to innovate and advance our research and development of low-carbon technology. In 2020, we expanded our low-carbon technology portfolio and we are prioritizing net-zero considerations in our corporate investment strategy to ensure alignment and complementarity across priorities required to deliver a business transformation. At the same time, we are enhancing transparency and reporting by incorporating the TCFD and SASB standards into our reporting framework. We also continue to engage on the net-zero transformation with stakeholders across the energy ecosystems. These efforts are detailed in the Principles section of this report.
Our decarbonization pathways
Through this process, we identified eight strategic decarbonization pathways. Each of these is prioritized, linked to specific actions over the short, medium, and long-term, and assigned owners.