Reducing Greenhouse Gas
As a company, we’re proud of our efforts to enhance energy efficiency and reduce greenhouse gas (GHG) emissions. We recognize that daily activities using electricity, natural gas, diesel and other fuels contribute to GHG in the atmosphere. In 2016, we achieved a 19% reduction in greenhouse gas emissions through continued focus on energy efficiency and conservation measures throughout our operations. Emissions reduction savings by category are provided below. (See the Performance Metric Table for details on our greenhouse gas reporting)
And, we met our overall resource reduction goal of 10%, calculated on a weighted average based on our use of electricity (40%), natural gas (40%), and water (20%). We measure our progress at 240 of our largest facilities using GreenLink, our environmental performance database. These facilities represent more than 85% of the energy and water used across our global suite of manufacturing and operations facilities. We achieved cost savings of $8.6 million at these facilities in 2016, and more than $25 million in the last three years. We estimate savings of more than $100 million since our energy conservation measures were integrated and became quite simply, the way we do business.
Our commitment to manage the risks associated with increased concentrations of greenhouse gas (GHG) and climate change spans nearly 10 years. We identify inherent climate change risks that may have the potential to generate material changes in our business operations, revenue and costs. These risks include regulatory changes and physical climate risks and we monitor many others. While uncertainty remains, we are committed to taking action, which we have demonstrated by completing numerous energy conservation projects that reduced our carbon dioxide emissions each year.
Baker Hughes is committed to managing the risks associated with climate change. This commitment supports our global Health, Safety, Environment & Security Policy to ensure environmental protection across all company operations. Key elements of our commitment are as follows:
- Complying with all relevant legislation, associated guidance, and international, national, and industry standards
- Conserving energy through the use of energy-efficient equipment, implementation of best practices, and increasing the use of alternative and clean energy
- Minimizing greenhouse gas emissions, including a commitment to support the generation of geothermal energy through technology innovations and our service offerings
- Setting measurable goals and plans to improve performance and reduce our overall carbon footprint
- Mitigating the effects of drought through the conservation of water
- Collaborating with stakeholders including customers, regulators, contractors, suppliers, and other partners to reduce impacts from climate change
- Promoting these Climate Change elements with our suppliers/vendors and partners
- Reporting performance information to the public on greenhouse gases and other climate change risks
- Reviewing and auditing systems and performance data, including the use of third-party audits when necessary
In line with these commitments, we collaborate with industry through associations that engage with policy makers on legislation intended to reduce greenhouse gas emissions. This includes participation in technical roundtables, submittal of technical publications, peer review of publications and disclosures to customers, investors and the general public. While we formally joined the International Petroleum Industry Environmental Conservation Association (IPIECA) in 2016, we’ve been engaged with IPIECA and the International Oil and Gas Producer’s Association (IOGP) for the past 8 years in joint industry working groups addressing climate change issues.
Baker Hughes continues to achieve top performance in our sector for the quality of our climate change disclosures. For eight consecutive years we have publically reported to the CDP Climate Change disclosure and have been listed at the Management Level for the past four years, outperforming both the S&P 500 and Energy Sector average.