Baker Hughes Moving Closer To Fulfilling Net-Zero Target

Baker Hughes Moving Closer To Fulfilling Net-Zero Target
Baker Hughes has published its 2021 Corporate Responsibility Report, outlining actions the company has taken to fulfill its net-zero carbon reduction goals by 2050.

Baker Hughes has published its 2021 Corporate Responsibility Report, outlining actions the company has taken to enhance the sustainability of its operations as it relates to environmental, social, and governance (ESG) performance.

Baker Hughes said that the report also demonstrated progress in fulfilling the company’s net-zero carbon reduction goals by 2050.

The company added that it continued to support the objectives of the Paris Climate Agreement and that it was committed to reducing its greenhouse gas (GHG) emissions, advancing the energy transition, and enabling the global shift to lower carbon industries and infrastructure.

“2021 was a year of acceleration and action for our corporate responsibility efforts, to advance our sustainability goals while executing for our customers and delivering for our shareholders,” said Lorenzo Simonelli, chairman and CEO of Baker Hughes. “The world still faces the dual challenge of meeting increasing energy demand while simultaneously reducing associated greenhouse gas emissions. Our strategy remains focused on solving this dual challenge by advancing our sustainability efforts within Baker Hughes.”

“Recognizing the increasing importance of sustainability for our stakeholders, we took important steps this year to advance our sustainability strategy and programs, not only for reducing our emissions and increasing energy efficiency but also driving a sustainable culture across the company by engaging all our global employees,” added Allyson Anderson Book, vice president of energy transition and sustainability steering team chair at Baker Hughes. “We also expanded our emissions reporting for Scope 3 value chain GHG emissions – indirect emissions from activities not owned or controlled by Baker Hughes – which is a major step forward in achieving our emissions reductions goals.”

According to the report, Baker Hughes advanced its sustainability goals in 2021 in several priority areas. Namely, it reduced Scope 1 and Scope 2 greenhouse gas emissions by 23 percent compared to the 2019 baseline year. It achieved these reductions by executing its net-zero roadmap through a combination of energy efficiency initiatives, facility consolidation, increasing electric power consumption from renewable energy sources, and improvements in its vehicle fleet, among other programs.

Baker Hughes also expanded reporting of Scope 3 emissions across the value chain to include emissions from purchased goods and services, fuel- and energy-related activities, use of sold products and services, upstream and downstream transportation and distribution, employee commuting, business travel, waste generated in operations, and investments.

The oilfield services giant also invested in growth and accelerated partnerships in new energy frontiers, including hydrogen and carbon capture, utilization, and storage. In 2021, the company generated approximately $250 million in new energy orders, primarily in hydrogen and CCUS applications while it invested $492 million in research and development and was granted more than 2,500 patents.

Baker Hughes continued to prioritize safety and health which meant that 100 percent of its security personnel and embedded security contractors completed human rights training in 2021, and reported consistently strong occupational safety and health performance, including an increase in the number of Perfect Health, Safety, and Environment Days.

The company further supported diverse communities with 45 percent of Baker Hughes Foundation’s strategic giving benefiting diverse communities. A highlight of our community program was establishing new partnerships with four historically black colleges and universities to promote academic excellence in STEM, business, and legal fields, mentoring, and career opportunities for students.

Last year also saw the launch of the “Carbon Out” internal company-wide initiative to take carbon out of operations and meet the pledge of achieving 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.

“Our corporate responsibility report is prepared in accordance with GRI-Core standards and references the United Nations Sustainable Development Goals, and in 2019, Baker Hughes became a participant of the UN Global Compact initiative – a voluntary leadership platform for the development, implementation, and disclosure of responsible business practices,” Baker Hughes concluded.

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