Better Health for All
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Baker Hughes' Scope 3 emissions, which constitute 99.5% of its total emissions, increased by 33.3% for purchased goods and services and by 36.6% for the use of sold products compared to 2019.
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The company also incurred $551,870 in penalties for 21 environment-related offenses, including water pollution and hazardous waste violations, with the most recent environmental violation in 2022.
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Despite these, Baker Hughes achieved a 29.3% absolute reduction in Scope 1 and 2 GHG emissions
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and a 39.5% reduction in emissions intensity from a 2019 base year.
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It also reduced total waste by 13.8%, hazardous waste by 51.5%, and chemical spills by 43.1% compared to 2022,
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and accrued $54 million for environmental remediation in 2024.
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During the COVID-19 pandemic, the company utilized its manufacturing capabilities to produce over 25,000 parts for PPE, aiding healthcare facilities worldwide.
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Additionally, it donated nearly $175,000 in 2024 to disaster relief agencies,
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and its Foundation has donated over $300,000 since 2021 to help communities recover from natural disasters.
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Fair Money & Economic Opportunity
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Baker Hughes Company is an energy technology company, and its core business does not involve providing lending or deposit services to consumers. Consequently, most KPIs related to consumer financial products, pricing, fees, and direct customer financial outcomes are not applicable to its operations. The company has a supplier diversity program, spending $632 million with diverse and small suppliers in 2024.
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The Baker Hughes Foundation made a $50 million investment in Unity National Bank, a Minority Depository Institution that focuses on underserved communities.
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The Foundation also contributed over $1 million to Historically Black Colleges and Universities since 2021, including $400,000 for the 2024-25 academic year.
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In 2023, total combined contributions and pledges to charity were $63,694,410.
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However, the company's annual pre-tax profit is not available in the provided articles, preventing the calculation for profit reinvestment. Regulatory violations cited are not related to fair lending practices.
Fair Pay & Worker Respect
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The CEO-to-median-employee pay ratio was 269:1 in 2024.
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In 2024, 28.4% of employees were covered by collective bargaining agreements.
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The employee turnover rate was 11.8% in 2024.
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The company's Morgan City Grinding Plant received two Section 104 S&S Citations with proposed MSHA Assessments of $336 in 2024.
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Fair Trade & Ethical Sourcing
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Baker Hughes reported zero substantiated forced or child labor incidents in its operations or supply chain during 2024.
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The company conducted 416 Supplier Social Responsibility Program (SSRP) audits in 2024, with 95% of identified red-flag findings closed within 90 days.
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Direct material suppliers identified as high-risk are subject to audit on a one- to five-year basis.
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Honest & Fair Business
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Baker Hughes has a comprehensive whistleblower policy, including an "Open Reporting Environment" that encourages employees to report concerns without fear of retaliation.
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This program is supported by a global network of trained ombudspersons, a worldwide 24-hour business helpline operated by a third party in approximately 200 languages, and a dedicated website for anonymous reporting.
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In 2024, 99.4% of employees and 100% of governance body members completed the annual Code of Conduct training, which includes the whistleblower policy.
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However, there is no evidence of resolution times for whistleblower cases or public measurement of program effectiveness. The company recalculated its 2019 Scope 1, 2, and 3 emissions due to structural changes and methodology enhancements.
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The Audit Committee provides oversight over risk assessment and management, including compliance reporting, and assessed risks across 100% of operations in both business segments.
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In 2024, 93% of governance body members completed Code of Conduct training.
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The company has an ESG Risk Score of 26
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and an ESG Controversy Level of 'None' from finance.yahoo.com,
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and an overall impact rating of 'B' (61.5) from EthosESG, ranking 4th out of 75 industry peers.
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Its Sustainalytics ESG Risk Rating is 25.7 (Medium), ranking 34 out of 95.
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The Social Supplier Responsibility Program (SSRP) closed 95% of red flag audits within 90 days.
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In 2024, 33% of the Board of Directors identified as women.
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The company maintains a robust anti-bribery and corruption policy that prohibits bribery and facilitating payments in all business dealings, supported by internal controls, online and live training, and detailed risk-based processes for screening transactions and third parties.
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In 2024, 100% of enterprise security personnel received human rights training.
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The company received its first-ever external assurance over Principles data
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and has 71 sites certified to ISO 45001:2018.
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Kind to Animals
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Baker Hughes has allocated over $10 million toward habitat restoration and species conservation.
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In October 2023, the Baker Hughes Foundation contributed $100,000 to the Coastal Prairie Conservancy, which protects nearly 31,000 acres of coastal prairie, wetlands, farms, and ranches in Texas.
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This includes the 2,800-acre Indiangrass Preserve, home to over 300 resident and migratory bird species, 110 species of mammals, amphibians and reptiles, and 700 species of wildflowers and grasses.
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The Foundation also granted $1 million to One Tree Planted in October 2023, facilitating the planting of 1 million trees across 17 countries, with an additional $310,000 for urban forestry in June 2024.
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Through its 'Bees for the Future' project, the company adopted 650,000 bees and safeguards 177 hectares of forest.
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Baker Hughes assessed 100% of its operational sites for biodiversity risks in 2024.
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No War, No Weapons
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Baker Hughes is under formal investigation by the SEC, initiated in December 2020, concerning its books, records, and internal controls regarding sales in projects impacted by U.S. sanctions.
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In September 2022, £21 million of import registrations from Baker Hughes Energy Technology UK were filed with the Russian customs service, after the company suspended new investments in Russia in March 2022
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and halted work supported by Scottish operations in July 2022.
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The company operates a Supplier Social Responsibility Program (SSRP) to monitor compliance with high standards of human rights.
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In 2023, the SSRP conducted 461 audits, identified 1707 red flag findings, and closed 95% of these findings within 90 days.
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Direct material suppliers identified as high-risk are subject to human rights audits on a one- to five-year basis.
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Baker Hughes is a signatory of the UN Global Compact since 2019, annually renewing its commitment to the Ten Principles,
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and its Human Rights Policy is informed by the UN Guiding Principles on Business and Human Rights.
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In 2024, 100% of enterprise security personnel received human rights training.
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Planet-Friendly Business
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In 2024, Baker Hughes' total Scope 1, 2, and 3 greenhouse gas emissions were approximately 112.9 million tCO₂e, derived from 564,728 MT CO2e for Scope 1 and 2, with Scope 3 constituting 99.5% of total emissions.
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The company sourced 34.2% of its total electricity consumption from zero-carbon sources in 2024.
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Water withdrawn in 2024 was 2,687.5 Megaliters, against a revenue of $27.8 billion, resulting in 96.67 m³ per $1 million revenue.
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,
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The waste recycling rate in 2024 was 32.6%.
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In 2023, 13.71% of water was withdrawn from water-stressed areas.
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Respect for Cultures & Communities
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Baker Hughes provides global grievance mechanisms, including a hotline, email, and website, available to all stakeholders for human rights and compliance concerns.
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The company has established four formal partnerships with indigenous or Aboriginal and Torres Strait Islander organizations, including Supply Nation, Canadian Aboriginal and Minority Supplier Council, IPS Management Consultants, and Sammy Wyborn Aboriginal Art.
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No cultural appropriation incidents have been reported.
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The company's internal initiatives, such as "Eight Behaviors" and "People First," are translated into 9-15 languages to enhance corporate culture for 95% of its workforce.
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However, charitable giving to cultural heritage organizations is minimal, with a $100,000 grant in 2022 to the Emancipation Park Conservancy, representing approximately 0.00036% of its 2024 revenue.
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Safe & Smart Tech
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Baker Hughes has not experienced a material cybersecurity incident.
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The company's Governance and Corporate Responsibility Committee provides oversight for responsible AI, and it uses AI to reduce unconscious bias in ESG materiality assessments.
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Baker Hughes holds ISO 27001 certification for data security.
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Data is encrypted with robust protocols at every stage of transmission and when at rest, utilizing industry-standard key management and full-device hard drive encryption.
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The company implements a required annual employee cybersecurity training program, which includes phishing campaigns and continuous awareness activities.
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It has strong data governance, preventing unauthorized data use, and provides users with comprehensive controls over their personal data, including rights to access, correct, delete, and withdraw consent.
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Baker Hughes monitors cybersecurity vulnerabilities and engages third-party experts for assessments and penetration tests.
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The company enforces privacy-by-design principles through supplier contracts, requiring data minimization and appropriate security measures.
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It also maintains a strong regulatory compliance program, adhering to GDPR, UK GDPR, CCPA/CPRA, and other data protection laws.
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Zero Waste & Sustainable Products
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Baker Hughes reduced hazardous waste by 27.1% compared to 2022.
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The company's 2023 and 2024 sustainability reports indicate no specific waste disposal violations, fines, or compliance issues.