Baker Hughes Achieves Significant Emissions Reductions

Baker Hughes, a leading energy technology company, has released strong progress in its 2024 Corporate Sustainability Report, highlighting its ongoing commitment to sustainable energy development and environmental stewardship. The firm posted a 39.5% decrease in greenhouse gas (GHG) emissions intensity for Scope 1 and 2 emissions from its 2019 baseline, and a 29.3% absolute decrease in these emissions. These results further underscore the company's commitment to providing energy solutions that are both efficient and sustainable.

Chairman and CEO Lorenzo Simonelli highlighted the need to balance global energy requirements with climate action. "Our capacity to spur economic growth and realize meaningful emissions reductions demonstrates our commitment to sustainable energy development – the equilibrium required to provide the world with the energy it requires today without negatively affecting the abundance and availability of energy tomorrow," he stated. Simonelli attributed the company's strategic alignment of sustainability with its business activities for this double progress in growth and emissions reduction.

The report highlights how sustainability has emerged as a central competitive strength for Baker Hughes. Chief Sustainability Officer Allyson Anderson Book explained that the company's sustainability strategy is integrated deeply into its overall corporate system of "people, planet, and principles." She emphasized that all aspects of the business have played a role in the success of this strategy, including initiatives like "Carbon Out," which enable employees to take an active role in curbing emissions.

One of the most significant highlights of the report is how the company managed to cut emissions while staying profitable and helping its customers on their own sustainability paths. Baker Hughes has ramped up its utilization of lifecycle analyses (LCAs) to share with customers transparent emissions information. During 2024 alone, 560 LCA evaluations were conducted utilizing the company's FastLCA proprietary tool, an increase of 79% compared to the previous year. The number of LCAs performed to date has now reached almost 1,000. The tool also measures emissions avoided or removed by enhanced efficiency, equipment maintenance, or the use of low-carbon technologies, further allowing customers to achieve their climate objectives.

Health, safety, and employee welfare continued to be at the core of Baker Hughes' company culture in 2024. Baker Hughes reported an 11% decrease in its total recordable incident rate over last year and had 206 Perfect HSE (Health, Safety, and Environment) Days. For the first time, this information underwent external assurance, which illustrates the company's openness and transparency to accountability. These statistics show Baker Hughes' continued commitment to providing a safe and secure working environment.

Another critical aspect of Baker Hughes' sustainability performance is its "people first" culture that promotes inclusivity, engagement, and community service. In 2024, the company rolled out a single talent strategy to attract, retain, and develop top talent. Employee voluntary attrition decreased to only 6%, highlighting high employee satisfaction levels. Moreover, more than 2,000 Baker Hughes employees volunteered a total of 44,613 hours to over 520 charitable organizations globally, demonstrating a keen emphasis on contributing to society and enhancing social responsibility.

The report also highlights Baker Hughes' strong governance and reporting practices. Its sustainability report is aligned to globally accepted frameworks and standards such as the Global Reporting Initiative (GRI), the GHG Protocol, and comprehensive indices matching the Sustainability Accounting Standards Board (SASB), the Task Force on Climate-related Financial Disclosures (TCFD), and CDP. To provide a high level of accuracy and transparency, the company gets two different reviews of its annual report, including one from an independent accounting firm.

Baker Hughes' commitment to responsible business practices has earned global recognition. As a participant in the United Nations Global Compact Initiative, the company was awarded the Global Impact Award by the UN Association of Houston for its initiative to promote the UN Sustainable Development Goals (SDGs). The award is an indication of Baker Hughes' increasing impact on the global drive towards sustainable, ethical, and inclusive business practices.

Through a combination of cutting-edge technology, operational effectiveness, and value-based culture, Baker Hughes remains committed to making significant progress towards its net-zero ambitions. Its 2024 Corporate Sustainability Report is a demonstration of the company's long-standing commitment to long-term value creation for stakeholders and positive contributions to the planet and society.