Expanding our Scope 3 emissions reporting

Expanding our Scope 3 emissions reporting

Measuring and reducing our value chain emissions is an integral part of our climate strategy. In 2019, Baker Hughes committed to expand the reporting boundary of our Scope 3 emissions.

While most of these emissions are outside of our direct control, we have influence on some of them, including product design and materials, the structure, and circularity of our value chain, and through collaboration with upstream suppliers, customers, and other stakeholders.

We reviewed the Scope 3 categories in accordance with the Greenhouse Gas Protocol and have expanded our reporting. In 2019, we disclosed travel-related emissions and a subset of our logistics-related emissions.

In 2020, we added reporting on emissions from the capital goods acquisition of property, plant, and equipment, an expanded view of international shipping across the Baker Hughes enterprise, waste generated from our operations, and a portion of the use of sold products. We applied the expanded boundary and methodology to both 2019 and 2020 to give a frame of reference consistent with our accounting for Scopes 1 and 2.

Reducing scope 3 or value chain emissions is a key building block of our emissions reduction strategy. Baker Hughes is innovating through material and design to look for new ways to reduce emissions upstream and downstream of our operations, and to enable our customers to reduce their emissions we do not control.

We piloted our Supplier Emissions Program in 2020 and will launch it to key suppliers in 2021, so that we can quantify emissions across our vast and complex supply chain. This program aims to nurture valuable engagement around sustainability, emissions quantification, and idea sharing to move forward together in our sustainability journey.

In the future, we intend to continue our focused efforts to further expand our Scope 3 boundary to identify further emissions reduction opportunities. We see reduced emissions from commuting, business travel and freight haulage, waste, upstream emissions from supply-chain and sourcing activity, as well as working with our customers to assess and reduce their emissions from the use of our products as the most promising opportunities for future Scope 3 emissions reductions.

 

Scope 3 emissions by category (metric tons CO2e)

 

2019
2020
Capital goods
302,420
247,129
Upstream transportation and distribution
245,829
162,445
Waste generated in operations
Data not available
204,061
Business travel
88,421
25,376
Employee commuting
153,871
108,887
Use of sold products* 
1,724,648
1,601,376

*Not included are emissions from other gases (ethane, propane, and butane) equate to 583,181 metric tons CO2e in 2019 and 384,252 metric tons CO2e in 2020