Scope 1 and 2 greenhouse gas emissions

Scope 1 and Scope 2 GHG emissions refer to emissions from our direct operations and purchased electricity, respectively. We have pledged to reduce these emissions by 50% by 2030, on our way to achieving net-zero emissions by 2050.

During 2021, our combined Scope 1 and 2 emissions were 23% lower than our 2019 base year. Our Scope 1 emissions reduced from 515,384 MT CO₂e in 2019 to 391,346 MT CO₂e in 2021 and our Scope 2 from 271,207 to 215,996 MT CO₂e respectively. We achieved these reductions by executing on our Net-Zero Roadmap and the key decarbonization pathways - through a combination of energy efficiency initiatives, facility consolidation, increasing electric power consumption from renewable energy sources, and improvements in our vehicle fleet, among other reasons. Please see our carbon offset policy for additional information. In this section of the report, we will share some specific examples of projects that have contributed to our GHG emissions reductions. In accordance with the Greenhouse Gas Protocol, we restated our 2019 emissions baseline to account for company structural changes, including emissions related to additional field activities, and to reflect enhancements in our carbon accounting methodology. For detailed information, please refer to the Statement and Notes on Greenhouse Gas Emissions in the appendix of our sustainability report.

In 2021, we launched "Carbon Out", a company-wide initiative to take carbon out of our operations and meet our pledge to achieve net-zero emissions by 2050. This engagement program provided tools, a framework, funding, and resources to engage Baker Hughes employees in systematically reducing operational emissions.

Each of our product companies identified mid- to long-term carbon abatement projects to drive emissions reductions across its operations. Abatement projects are being included in our mid- and long-range planning efforts to ensure timely, efficient, and cost-effective abatement project implementation in the years ahead. Our Carbon Out program indicates our holistic view of climate change risk analysis, to not only manage and mitigate physical risks, but also identify opportunities to balance out any physical risks of climate change at our sites, by implementing carbon reductions in the near term.

Our employees are engaged in practical energy efficiency and emissions reduction projects across our sites. Global site leaders and employee teams organized energy efficiency awareness weeks - a set of week-long campaigns at various sites to encourage employees to identify opportunities to reduce emissions.

Some examples of facility improvement projects include:

• An office in the UK reduced its energy consumption by implementing a number of measures including monthly meter checks, hazards hunts, heating controls, and other awareness efforts. In the first six months of 2021, the site decreased its average monthly kilowatt usage by more than 16% on due to these energy conservation measures.
• In India, our Drilling Services facility reduced its annual energy consumption from 526 kWh/yr to 116 kWh/yr by replacing all compact fluorescent lamp tube lights with motion sensor-equipped LED lights.
• In China, our Suzhou industrial park facility decreased electricity consumption by 53% and reduced natural gas usage by 64% through dedicated energy efficiency projects and by embedding energy savings factors into daily operations.
• In Turkey, an Assembly, Maintenance, and Overhaul workshop reduced its carbon footprint by switching from diesel-powered to electric forklifts, while reducing noise levels and costs by 32%.
• The Drill Bit product line has reduced electricity usage through innovation, building on its prior efforts. One initiative involved improving the manufacturing process for polycrystalline diamond compact drill bits using more efficient heating systems and better heat transfer.

We have increased our share of renewable and zero-carbon electricity from 22% in 2020 to 24% in 2021. From the US to Brazil, Europe, and Singapore, we continue to find opportunities to use renewable and zero-carbon energy sources both onsite and offsite across all our global locations. This includes contracting renewable energy through power purchase agreements, collaborations with utility and retail energy providers, as well as on site solar installations at our company owned or leased facilities.

We now have on-site solar installations at ten locations, including:

• Bari, Italy
• Billerica, Massachusetts, US
• Changzhou, China
• Coimbatore, India
• Florence, Italy
• Massa, Italy
• Minden, Nevada, US
• Talamona, Italy
• Singapore
• Vibo Valentia, Italy

We now have 100% renewable electricity or zero-emission nuclear energy for all Baker Hughes sites in two countries - Germany and the United Kingdom. For Germany, we have a mix of hydroelectric and wind power, while in the UK, we use a combination of wind and nuclear power. In Texas, our renewable power originates from the White Mesa wind farm in Crockett County generating 500 MWs from 180 wind turbines and the Elara solar installation in Frio County generating 130 MWs and spanning 1,700 acres. Baker Hughes' share is 55 MWs for both solar and wind from these renewable power sources, both of which officially came online during 2021.

At Baker Hughes, a key component of our strategy is enhanced management of our global motor vehicle fleet, including reducing unnecessary idling and increasing electrification and low-carbon fueling.

For the past two years, we have tracked idling across more than 3,000 company vehicles that are fitted with an in-vehicle monitoring system. These systems were originally used to track driving behaviors (e.g., acceleration, deceleration, and harsh braking) to improve safety, and have since been expanded to also measure idling time. Our transportation procedures were expanded to include defined idling time limits of no more than five minutes and related requirements for anyone driving a company vehicle.

To underscore the importance of minimizing unnecessary vehicle idling - for employees driving company vehicles, as well as during personal time - we developed a broad awareness campaign in 2021 to educate leaders and provided practical tools to educate and engage employees. We launched a resource hub on our company intranet, shared environmental moments focused on vehicle idling, awareness posters, and other materials.

Electric vehicles also comprise a key component of our fleet emissions reduction strategy. We are collaborating with vendors to procure electric vehicles and are working with our largest vehicle leasing vendor on a strategic vehicle replacement plan that includes increasing percentages of electric vehicles in our fleet over time. During 2021, we had 137 hybrid and 14 electric vehicles in our fleet of 8,546 vehicles.