Policy Engagement and Working with Governments
Given the breadth and scope of our industry and our global footprint, senior leaders across our operations engage with public officials at all levels of government. At times, public policy can have a significant effect on our business. We believe it is in the best interest of Baker Hughes and our stakeholders that our perspective informs the development of relevant public policies. Our participation in the policymaking process is subject to an extensive framework of laws and regulations, as well as company policies and internal oversight that demonstrate our commitment to both the letter and the spirit of the laws governing our activities.
We developed criteria for engaging with trade associations to ensure engagement aligns with the strategic interests of Baker Hughes. In 2020, we increased our activity with organizations focused on hydrogen, geothermal, energy storage, carbon capture and storage, and new industrial sectors, in addition to our traditional petroleum-focused associations.
Partnerships For Advancing Sustainability
We are committed to enhancing the pace and scale of the global energy transition. In 202, we initiated the development of a net-zero aligned stakeholder engagement strategy. We hope to inspire others in our industry and lead by example. Cooperation and sharing of best practice and lessons learned can help get us to the net-zero faster. Collaboration enables a deeper understanding of the challenges at hand and optimal ways for crafting and scaling the solutions. In our engagements, we are guided by our public policy positions in support of climate action, carbon pricing, CCUS and hydrogen development, and reduction of methane emissions (the policy statements are available on our website).
In 2020, we joined the Hydrogen Council and the European Commission Clean Hydrogen Alliance, where we are working with the private sectors partners, non-governmental organizations, and governments in support of the development of a hydrogen economy allowing both blue and green hydrogen growth to reduce emissions from difficult to abate sectors.
As a member of the Carbon Capture Coalition, a nonpartisan collaboration of more than 80 businesses and organizations building support for economy-wide deployment of carbon capture, transportation, utilization, and removal, we actively contribute to national and global dialogues on the CCUS. In 2020, we provided our support and written comments to the United States government in favor of expansion and extension of the 45Q tax credit for CCUS.
We worked with the Keystone Policy Center, a nonprofit organization, on the development of a Decarbonization Dialogue. The Decarbonization Dialogue, led by Keystone Policy Center and Great Plains Institute, convened experts from different sectors of the economy to provide recommendations on near-term federal policies for driving economy-wide and equitable decarbonization. The Decarbonization Dialogue was designed to provide a collaborative set of policy solutions that could inform the public debate on climate action and decarbonization solutions.
In addition to work on energy transition and climate, Baker Hughes also actively participates with several industry organizations to support the development of HSE standards and best practices. These include the International Association of Drilling Contractors, American Petroleum Institute, Center for Offshore Safety (COS), International Association of Oil and Gas Producers, and Society of Petroleum Engineers (SPE). Baker Hughes also created and shared industry guidance on proactive learning on behalf of IOGP and has been recognized by key customers for our efforts to improve HSE performance using human performance/ human factors concepts through our Human Performance Leadership training program.
Baker Hughes may from time to time contribute to candidate or issue committees and other political organizations as generally authorized by its Board of Directors and consistent with applicable laws. Baker Hughes does not currently utilize a Political Action Committee. On an annual basis, the Governance & Nominating Committee reviews all corporate political contributions, as well as all non-deductible portions of payments in excess of $50,000 made to trade associations. We publicly report information regarding our advocacy activities and political contributions.