Month: August 2023

Read the full Baker Hughes Corporate Sustainability Report. 

Last year, the global energy map was redrawn, resulting in a complex energy market and a challenging macro environment. There was a renewed focus on energy security, sustainability, and affordability – “the energy trilemma”- and balancing the pace of energy transition. These forces have presented an opportunity for Baker Hughes to help our customers on their sustainability journeys and allow us to renew our focus on operational excellence to better support the needs of the energy industry well into the future.

In 2022, we continued to accelerate our business strategy to fully capitalize on the opportunities that lie ahead, drive increased shareholder value, and build a world-class energy technology company. In September 2022, we announced a strategic transformation for Baker Hughes by restructuring into two simplified business segments – Oilfield Services & Equipment and Industrial & Energy Technology – offering an integrated portfolio of solutions that we believe are best served for energy and industrial customers. We believe that focusing on these two business areas will better position our Company by enhancing flexibility, improving commercial and operational execution, and providing long-term optionality.

Our realignment and strong progress were underpinned by our sustainability strategy. Our vision is to be a sustainable pioneer in everything we do, positioning Baker Hughes as the energy technology company of choice. Through our existing corporate sustainability framework – known as People, Planet and Principles – we have continued to support the United Nations (UN) Sustainable Development Goals (SDG) and to move beyond pledges to weave sustainability more deeply in our culture. We are taking action to advance our net-zero journey, and I am proud of our accomplishments since first setting our net-zero emissions 
reduction pledge in 2019. Together, our business and sustainability strategies empower us to take energy forward – making it safer, cleaner, and more efficient for people and the planet.

Our strategic transformation in 2022 highlights sustainability as one of our core differentiators

People 
Our talented people continued to be industry-leading subject matter experts, taking energy forward in the most sustainable way. People are at the heart of taking energy forward, and we strengthened our employee value proposition to attract the best talent from around the globe to lead in the energy transition. I am proud of the recognition that we achieved this year for our collaborative learning and development programs, as well as our diversity, equity, and inclusion initiatives. We increased our contributions to the communities where we operate, as part of our charitable giving, further demonstrating how our actions continue to drive our progress and impact.

Planet 
We continue to pioneer low- to zero-carbon energy solutions for our customers and minimize our own operational footprint. Since we first made a commitment to achieve net-zero carbon dioxide equivalent (CO2e) emissions by 2050, we have achieved a 28% reduction in our scope 1 and scope 2 emissions in 2022, compared to our 2019 baseline year. We remain committed to emissions reduction, but have also set new, ambitious internal targets to reduce our scope 3 emissions, embed circularity into our products’ lifecycles, and preserve biodiversity in our areas of operation.

Principles 
Our culture is built on health and safety, compliance, integrity, and quality. We remain steadfast in upholding the highest standards in these areas. We have taken proactive and preventative measures to protect our employees and foster a culture guided by these principles. I am confident in our ability to advance our sustainability journey and proud of our accomplishments this year. We continue to put our people first, minimize our environmental impact, and drive a strong culture of integrity and safety in support of a sustainable future.

Lorenzo Simonelli 
Chairman, President, and Chief Executive Officer

Read the full Baker Hughes Corporate Sustainability Report. 

Independent research firm Verdantix recently identified IBM as a leader in their report, “Green Quadrant: ESG Reporting and Data Management Software” (July 17, 2023), which evaluated and provided a detailed assessment of solution providers and their product offerings. The rigorous analysis conducted by Verdantix included a comprehensive 115-point questionnaire, two-hour live demonstrations by suppliers and interviews with existing ESG software customers. The audience surveyed are those who are responsible for selecting, implementing and deriving value from Environmental, Social and Governance (ESG) reporting and data management applications.

The report notes that the market landscape for ESG reporting software and data management software has evolved rapidly over the past three years, driven primarily by increased regulations and interest from a variety of internal and external stakeholders. This has resulted in a proliferation of new entrants to the market seeking to meet a wide range of needs, including collecting and managing large amounts of data, ensuring the data is audit-ready, enabling reporting on that data, and using tools and technology to drive business decisions.

IBM has a strong heritage in helping clients around the world use technology like AI and advanced analytics—including the IBM Envizi ESG Suite and IBM Planning Analytics—to address their sustainability goals. IBM’s sustainability solutions provide clients with an end-to-end solution to manage ESG data, drive performance improvements and address reporting and disclosure requirements.

In reviewing IBM’s capabilities in ESG Reporting and Data Management, the Verdantix report notes that IBM has strengths in:

Data quality control and enhancement, including “easy-to-understand reports to better analyze data quality. These include incomplete data reports to identify missing or overlapping data at a granular level – such as by supplier or location – tools to automate the collection of missing data, and data health checks that include various metrics like time series meter data.”ESG and sustainability performance, including how “Envizi has particular strengths helping firms with long-term sustainability planning, including tracking net zero pathways, allowing users to set assumptions around growth scenarios, and helping customers explore these scenarios so they can make better decisions in how to allocate funding. In addition, IBM offers modelling capabilities through its Planning Analytics Solution, which uses AI and machine learning from the IBM Watson tool to perform what-if analyses and muti-variate forecasting.”

Companies around the globe are using IBM Envizi to simplify the capture, consolidation, management, analysis and reporting of ESG data, including Growthpoint, an Australian real estate investment trust, and Melbourne Water, the Australian government-owned authority that protects and manages major water resources for the city.

This recognition of IBM’s strengths in ESG reporting and data management software complements our leadership rating in the Verdantix “Green Quadrant: Enterprise Carbon Management Software 2022” study. These two results are welcome validation of our position as a leader in the market and encourages us to continue on the path to expand our capabilities in this space and key functionalities of our offerings.

For more information about IBM Sustainability, please visit the IBM sustainability solutions.

Watch IBM’s Sustainability Solutions video