Since announcing our carbon reduction commitment we’ve implemented a number of improvement programs to address our operational carbon emissions, including:
- Conducting training to help employees understand our carbon commitment and ways to contribute.
- Completing more than 500 facility energy audits and weekend energy walk-throughs at our sites around the world.
- Expanding the use of renewable energy at our offices and manufacturing facilities.
- Expanding the scope and rigor of our greenhouse gas emissions reporting program.
Through year-end 2019 our Scope 1 and 2 carbon equivalent emissions were 31% lower than our 2012 baseline. Emissions increased slightly over the prior year primarily driven by an increase in activity (an additional $0.9B in revenue) and expanding the boundary of what is reported in Scope 1 emissions to include additional vessels, vehicles, and facilities. However, most of these increases were mitigated by progress made throughout the year through the programs reported above.
We remain committed to our goal of achieving a 50% reduction in Scope 1 & 2 emissions by 2030. We expect some fluctuation of emissions from year to year due to dynamic market conditions and changes in activity levels, however our overall emissions trend over time is in line with achieving our 2030 goal.
Measuring Scope 3 emissions
Baker Hughes has reported Scope 3 emissions within a limited boundary as part of our CDP (formerly known as the Carbon Disclosure Project) report. The boundary has been defined as travel-related emissions and some portions of our logistics footprint such as international shipping. Calculating Scope 3 emissions is a complex and challenging task given the many parties involved, variety of calculation methods used, and the potential for double-counting emissions. Following the announcement of our carbon reduction commitment Baker Hughes has initiated a project to quantify an expanded set of Scope 3 emissions that will include supplier, customer, and employee carbon emissions impacts with the goal of setting a Scope 3 emissions reduction target. This effort will require outreach and collaboration across our value chain, and we believe it will identify many opportunities to reduce Scope 3 emissions for our company and our partners. Our aim is to report expanded Scope 3 emissions data with a broader boundary in 2020.
Baker Hughes has initiated a project to quantify an expanded set of Scope 3 emissions that will include supplier, customer, and employee impacts.
Powering our global facilities with renewable energy
Baker Hughes has implemented projects over several years to increase the percentage of renewable energy used by our global facilities where it is feasible and cost-effective. We employ wind power at our sites in the United Kingdom; hydroelectric power in Celle, Germany; and on-site solar power at sites in Billerica, Massachusetts; Minden, Nevada; and Vibo, Italy among others.
In 2019 we announced a new agreement to purchase renewable electricity for our facilities in Texas, our largest global region for energy consumption. The renewable power agreement will eliminate a substantial portion of the company's global carbon equivalent emissions over the 10-year term of the agreement.