2021 Baker Hughes Progress in our Corporate Responsibility
2021 Corporate Responsibility Report
Energy Forward | 2021 Corporate Responsibility Report
Support for the Paris Climate Agreement
We support the objectives of the UN Paris Climate Agreement and its goal to keep global temperature rise well below 1.5-degrees Celsius. As an energy technology company with a portfolio of lower-carbon solutions across the energy value chain, our corporate strategy is to lead through the energy transition to a low-carbon future. We have committed ourselves to reduce our Scope 1 and 2 carbon equivalent emissions 50% by 2030 and to achieve net-zero Scope 1 and 2 carbon equivalent emissions by 2050.
Stakeholder engagement
Effective stakeholder engagement involves establishing strategic alignment, common purpose, coordination, active participation, knowledge sharing, and action by all parties. Baker Hughes' stakeholder engagement meets this test by providing the opportunity for the Company to partner with organizations of mutual interest in advancing strategic goals and objectives.
In 2021, we developed a centralized and collaborative process for identifying, evaluating, and selecting stakeholder engagement partnerships and memberships based on criteria such as commercial interest, geographic footprint, policy positions, reputation, and opportunities for engagement. Specifically, we evaluated our partner organizations to determine whether they are aligned with our energy transition ambitions and corporate purpose, support our priorities, and provide opportunities for productive collaboration in achieving specific goals. We look to capture insights from the organizations and other members, while creating impact by sharing our policy perspectives. Knowledge and insights gained from stakeholder investments are shared across the Company via a series of subject matter knowledge networks and archived for broad access in the Company’s Knowledge Center. External partnerships and memberships are formally reevaluated annually to promote continued alignment with our strategy as an energy technology company.
We maintain strategic stakeholder engagements within the OFSE market, but we are increasingly focusing our attention on associations and thought leadership organizations associated with the energy transition to a lower-carbon world. While most of our engagements involve monthly or quarterly contributions to select stakeholder committees, workshops, task forces, and projects of mutual interest, we have also collaborated to lead presentations in specialized events with our stakeholders.
Some examples of the ways we engaged with strategic stakeholder groups and create shared value include:
Global Carbon Capture Institute (GCCSI)
Baker Hughes collaborates with the GCCSI—the world’s leading think tank on carbon capture and storage (CCS). Baker Hughes supports the GCCSI in building awareness of CCS technology and its significance toward achieving our climate goals through engagements with our peers, policymakers, and thought leaders across the globe.
Stanford Natural Gas Initiative (NGI)
Baker Hughes collaborates with the NGI on various knowledge areas, including natural gas emissions and leakage, unconventional gas reservoirs, energy access, global markets, and policy. Baker Hughes and NGI create synergies and overlaps among the different disciplines and focus areas by developing a comprehensive strategy for natural gas as a part of the low-carbon energy future.
Carbon Capture and Storage Association (CCSA)
Based in London, CCSA promotes the commercial deployment of CCUS. Through the CCSA, Baker Hughes engages with key stakeholders in the United Kingdom (UK) to participate in the policy development process and to discuss key policy issues with government officials. Baker Hughes contributed to the CCSA’s white paper on developing the UK supply chains to deliver a successful CCUS rollout program published in July 2021.
The Argentinian Oil and Gas Institute (IAPG)
The IAPG supports the government on oil and gas industry topics, regulations, standards development, and committees. In 2021, Baker Hughes contributed comments to the methane emissions draft regulation developed by the Emissions Committee for submission to the Argentinian Energy Secretariat, advocating for a new methane emissions reduction regulation. In addition, we are participating in the oil and gas sector sustainability baseline development within the Institute’s Sustainability Committee.
Hydrogen Europe
Hydrogen Europe brings members together to discuss issues and challenges associated with standards development for new technologies in the hydrogen economy. Baker Hughes experts contribute to the association’s specific working groups by providing input on the position papers and draft calls for proposals. In 2021, as an industry expert, Baker Hughes participated in the creation of a consortia to shape the necessary skills blueprint for the hydrogen industry. We contributed to Hydrogen Europe’s papers on the EU state aid rules and the Trans-European Networks for Energy (TEN-E) Regulation. Baker Hughes also sponsored the Hydrogen Europe report on the role of hydrogen launched at COP26.
International Association of Oil and Gas Producers (IOGP)
IOGP is the voice of the upstream oil and gas industry in Europe. In 2021, IOGP unveiled a new energy transition initiative with workstreams focused on a wide range of issues covering flaring, energy efficiency, carbon capture and storage, and electrification of offshore platforms. Baker Hughes is helping advance these efforts with representatives to the new energy transition workstreams.
Baker Hughes contributed to the IOGP–International Petroleum Industry Environmental Conservation Association (IPIECA)-World Bank publication, Flaring Management Guidance for the Oil and Gas Industry. We also co-chair the IOGP Policy Sub-Committee and contributed to the study on the repurposing of oil and gas infrastructure and the report on human factors in oil and gas operations.
Payne Institute – Colorado School of Mines
Collaborations with universities play an increasingly critical role in stakeholder engagement. In 2021, we collaborated with the Payne Institute at the Colorado School of Mines. Through this collaboration, we are participating in research to understand and address key drivers of emissivity in minerals and metals, which are a leading contributor to Scope 3 emissions.
Resources for the Future (RFF)
We engage with NGOs such as RFF to learn from their perspectives on climate change and other environmental issues. In particular, RFF’s work on the energy transition and emissions reduction has informed our technology and policy roadmaps. Additionally, we work with a number of key thought leadership groups and industry associations including:
- UN Climate Action Platform
- UN Global Compact
- The American Meteorological Association (AMS)
- Carbon Capture Coalition
- World Cement Association
- Digital Climate Alliance (DCA)
- International Geothermal Association (IGA)
- Italian Association of Hydrogen and Fuel Cells (H2IT)
- International Gas Union
- Geothermal Rising
- ASSORISORSE – Italian Sustainable Energy & Resources Industry Association
- COGEN Europe – The European Association for the Promotion of Cogeneration + Cogen World Coalition (CWC)
- Confindustria – Confederation of Italian Industry
- EU Turbines
- Japan Geothermal Association
- European Clean Hydrogen Alliance
- Australia Hydrogen Council
As we expand our strategically aligned relationships, we remain committed to seeking diverse viewpoints and perspectives to garner insights, which we believe will position Baker Hughes as a thought leader in the energy transition and beyond. Our collaborative engagements will continue, as we strive to make energy safer, cleaner, and more efficient for people and the planet.
