Progressing the ESG Agenda to Become Greener Cleaner and More Competitive

Decarbonizing the energy sector through innovative financing and technology Baker Hughes is an energy technology company with the mission to provide technology solutions to produce clean, safer and more efficient energy and decarbonize industry. Reducing emissions is a key part of our sustainability strategy, both in our own operations and the technologies we deliver to develop alternative energy solutions such as hydrogen, carbon capture and geothermal technologies, all of which will be important in Asia Pacific’s energy mix. We also use digital solutions and AI, such as remote monitoring and operations management, to drive more efficient use of energy. Our Corporate Responsibility framework highlights how we play a key role in the energy transition and includes extensive KPIs on people, planet and principles, and measure our performance year-on-year. As part of a broad global supply chain, we source materials from many countries around the world and our desire is to ensure that the suppliers we work with adhere to high standards. Our Supplier Integrity Guide governs all aspects of our relationships with suppliers, contractors, consortium partners, and consultants and our Supplier Social Responsibility Program is intended to set standards and monitor compliance with high standards of HSE performance, ethics, compliance, and respect for human rights. When we onboard new suppliers, and throughout our relationship with them, we monitor environmental and social standards, and have measures in place to help enhance performance and address breaches. As an example, while we do focus on higher-risk countries, we have around 160 auditors who are trained to assess suppliers against our requirements. Our banks and vendors play an important role in helping us to realize our sustainability strategy. First, we need data, with a level of conformity that enables us to assess our own and our supplier metrics and monitor improvement. Green financing is another key area in which we can partner with our banks, both to finance our own green solutions, and those of our suppliers. Energy regulations must evolve rapidly to drive common standards, and also help channel capital to the places where it has most impact. For example, Australia is positioning as a hub for hydrogen technologies, and the government has already announced funding of AUD $460m. Accessing this and similar financing around the world would be aligned with our own ambitions and those of our stakeholders and help enable innovative energy technologies. Francesco Ntibarikure CFO for Asia Pacific, Baker Hughes