Baker Hughes Company

Does the core business genuinely avoid or reduce emissions, or build climate resilience? Share of revenue that is actually 'green'. Fossil-dependent models score low.

The core business — oilfield services and LNG equipment — directly enables fossil fuel extraction and combustion; while Baker Hughes offers CCUS, hydrogen, and geothermal tech, these remain peripheral to revenue, and Scope 3 emissions of ~375 trillion kg CO2e confirm the company's dominant role in upstream fossil fuel value chains.

Credible, science-based targets (SBTi), a real net-zero plan with progress to date, and CDP disclosure — not just a dated press release.

Baker Hughes has a self-declared 50%-by-2030 and net-zero-by-2050 Scope 1+2 target with ~29% absolute progress reported; DitchCarbon notes SBTi validation for the near-term target, but there is no credible, quantified Scope 3 reduction target despite Scope 3 representing 99.5% of total emissions, and the net-zero roadmap lacks granular interim milestones beyond 2030.

Operational footprint, labour and social practices, and governance quality across the company's own operations and supply chain.

Baker Hughes participates in the UN Global Compact, completed a GRI materiality assessment in 2024, reduced its total recordable incident rate by 11% YoY, achieved a 43% reduction in chemical spills, and maintains Disability Equality Index recognition; these are credible operational improvements, though labor practices in conflict-adjacent geographies and governance around a 2021 OFAC sanctions self-disclosure introduce moderate ESG risk.

Quality of disclosure, independent third-party verification, and how much hard data backs the company's claims.

The 2024 sustainability report is prepared under GRI standards, GHG Protocol, TCFD, SASB, and CDP frameworks, with KPMG providing independent reasonable assurance on select emissions data and 2024 marking the first year of external HSE data assurance; disclosure quality is above-average for the sector, though Scope 3 methodology and boundary assumptions are not independently verified at the same level as Scope 1+2.

Controversies, litigation, pollution, fossil-fuel lobbying, conflict-zone involvement and governance scandals. Higher means cleaner.

No material environmental fines exceeding Baker Hughes' $1M disclosure threshold were reported in recent filings; a 2021 OFAC sanctions self-disclosure was resolved with a cautionary letter and no penalty, and the SEC closed its related investigation without enforcement action in 2023 — these are low-severity resolved matters, but the company actively lobbies on energy policy (LD-2 filings confirmed) and its commercial interests remain structurally aligned with continued fossil fuel production.