2018 Annual & Sustainability Report

CONTENTS

ANNUAL❯❯

Financial Highlights

1

Stakeholder Letter

2

Halliburton Performance4

About Halliburton

SUSTAINABILITY

Guiding Principles on Sustainability❯❯

6

Our Mission, Vision & Values

8

Materiality

10

12

26

34

38

Halliburton Management
SystemCorporate Governance,
Business Ethics &Stakeholder Engagement

Supply Chain

Halliburton Community

Journey to ZERO
13
Service Quality
19
Health and Safety
20
Environmental Stewardship 22

Corporate GovernanceBusiness Ethics
Human Rights
Stakeholder Engagement

Supply Chain Governance
Local Content andSupplier Diversity

27
29
32
32

Environmental & Social Data
48
United Nations Sustainable Development Goals Mapping
49
GRI Content Index
50
Sustainability Accounting Standards Board
52
Stakeholder Engagement
54
About This Report
Inside back coverOn the cover: Two Halliburton team members working at our test well site in Texas.
In 2018, Halliburton partnered with Texas Tech University to design Halliburton coveralls
that are specifically fitted for our female employees.

3536Community Engagement
Halliburton Workforce

39
41

FINANCIALHIGHLIGHTS

20161

20171

20181

Revenue$ 15,877$ 20,620$ 23,995

Operating Income (Loss)$(6,770)

$

1,374

$

2,467

Amounts Attributable to Company Shareholders:
Net Income (Loss) from
Continuing Operations$
Diluted Income per Share from
Continuing Operations$(5,761)

$

(444)

$

1,656

(6.69)$(0.51)

$

1.89

0.72

$

0.72

$

0.72

(Millions of dollars and shares, except per share data)

Cash Dividends per Share$

Diluted Common Shares Outstanding

861

870

877

Net Working Capital 2

$

7,654

$

5,915

$

6,349

Total Assets$

27,000$25,085$25,982
10,457

Total Debt

$ 12,384$

10,942$

Total Shareholders’ Equity

$

9,448

$

8,349

$

9,544

Capital Expenditures

$

798

$

1,373

$

2,026

Depreciation, Depletion and Amortization

$

1,503

$

1,556

$

1,606

Total Capitalization3$ 21,832

Debt to Total Capitalization4

57%$ 19,291$24 billion
We generated $24 billion of total Company revenue, a
16 percent increase from 2017, with improvements acrossall of our product service lines globally.

40 percent
In our Completion and Production division, we capitalizedon the market recovery in North America, delivering operating
income growth of 40 percent year over year.

$1 billion
We continued our focus on returning capital to shareholders
through share repurchases and dividends, which totaled over
$1 billion in 2018.

$ 20,001

57%

52%

1 Reported results during these periods include impairments and other charges of $265 million for the year ended

December 31, 2018, impairments and other charges of $647 million for the year ended December 31, 2017, andmerger-related costs and termination fee of $4.1 billion and impairments and other charges of $3.4 billion for theyear ended December 31, 2016.
2 Working Capital is deﬁned as total current assets less total current liabilities.
3 Total Capitalization is deﬁned as total debt plus total shareholders’ equity.

$15.9

$20.6

$24.0

$620

$626

$630

$0.8

$1.4

$2.0

1.2%

12.4%

14.3%

11.4%

9.6%

9.3%

4 Debt to Total Capitalization is deﬁned as total debt divided by the sum of total debt plus total shareholders’ equity.

16

17

18

16

17

18

16

17

18

16

17

18

16

17

18

Revenuein billions

Dividends toShareholders
in millions

CapitalExpendituresin billions

Completion and
Production Operating
Marginsin percent

Drilling and
Evaluation Operating
Marginsin percent

1

TO OURSTAKEHOLDERS

As we celebrate 100 years of growth,
innovation and unparalleled customer
service, Halliburton remains committed
to generating industry-leading returns
for our shareholders, ﬂawlessly executing
for our customers and outperforming
our peers. We commence our next
100 years with a clear sense of purpose.
Our industry produces affordable andreliable energy that improves the qualityof life for people around the world, andreasonable projections show that oil andgas will remain an essential part of theworld’s energy portfolio for many years
to come. At Halliburton, our purpose isto help our customers satisfy the world’s
need for oil and gas – more effectively
and efﬁciently, safely and ethically,
while minimizing environmental impact
and generating leading returns forour shareholders. This purpose aligns
with our core values and underlies
our strategy, value proposition andﬁnancial objectives.
During 2018, we once again delivered
superior growth and returns bycapitalizing on the market rebound in
North America and the emerging
international recovery. We maintained
our leading position in a tough, ﬁercelycompetitive market, sustained a steadypace of new technology development
and improved service quality – allwith a goal of helping our customers
maximize their asset value anddelivering leading returns to ourshareholders. Thanks to the exceptional
performance and commitment ofover 60,000 Halliburton employees,
we outperformed our peers andgenerated approximately $3.2 billion
in operating cash ﬂow. At the sametime, we reduced our debt by$400 million, strengthening our balance
sheet and enhancing our ﬁnancial
ﬂexibility. We continued to exercise

2

capital discipline, while also advancing
our differentiating technologies anddigital capabilities and expanding our
product and service offerings. We also
returned $1 billion to our shareholders
in the form of dividends and stock
repurchases.
As we enter 2019, our industry is going
through a transformation brought onby the shale revolution and the recent
down cycle. North America is now theworld’s leading oil producer, the industry
is more efﬁcient than ever before andour customers are increasingly focusedon generating cash ﬂow. We believe thisevolving landscape plays to Halliburton’s
strengths. As we have proven over
the years and demonstrated again in2018 – our technology, our people, ourcustomer alignment and our ﬁnancial
discipline position us to thrive in any
market condition and to deliver leading
returns for our shareholders.
In 2019, we will continue to focus on
the right things. We have permanently
removed over $1 billion in costs overthe last three years, and we willcontinue to reduce costs through ourcontinuous improvement initiatives.
We will effectively use our coherent
asset base through increasing asset
velocity and superior job site execution.
We will be disciplined in our capitalspending, while continuing to support
our business, developing differentiating
technologies and selectively investingto grow our product and services
portfolio. And we will focus on optimizing
cash ﬂow from our operations andproducing superior returns.

Sustainability provide the frameworkfor sustainable action and align with
our purpose and core values. Because
sustainability performance is an
important measure of our overall
performance, this year we are combining
our annual ﬁnancial report with our
corporate sustainability report. We
believe that this combined report further
emphasizes the strategic signiﬁcanceof sustainability to our Company.
“We seek to deliver superiorﬁnancial performance and returns
while minimizing environmental
impacts and acting as a responsible
corporate citizen.”

Ethics and integrity are at the heart of
the Halliburton corporate culture andprovide the foundation for our Guiding
Principles, our operations and our future.
They are the foundation for everything
we do. By adhering to the Halliburton
Code of Business Conduct, we conduct
our business “the RED way” – in a
responsible, ethical and diligent manner.
This includes a strong human rights
policy, a zero-tolerance anti-corruption
policy, a clear mandate to use anddevelop local resources and a strong
commitment to create social andeconomic opportunities for the local
communities in which we operate.
We earn the trust of our stakeholders
through relationships based on honesty,transparency and respect. And we holdour vendors, suppliers, and customers
to the same high standard of integrity.

Sustainability is imbedded in our
strategy and is integral to our overall
mission. We seek to deliver superiorﬁnancial performance and returns
while minimizing environmental impacts
and acting as a responsible corporate
citizen. Our Guiding Principles for

Halliburton 2018 Annual & Sustainability Report

“We look forward to our next
century and continuing to deliver
superior service and differentiating
technologies to our customers andstrong cash ﬂow and industryleading returns to our shareholders.”
Our commitment to our stakeholders,combined with the delivery of superior
services and products, has earned
Halliburton the reputation as theexecution company – and our people
are at the heart of this reputation.
We are successful because of thecontinuous dedication of our employees
to provide our customers with outstanding service. We strive to provide our
employees a work environment that ischallenging, focused on diversity andinclusion and free of discrimination orharassment. Our employees receive
essential safety training and are
responsible for Halliburton’s safety
culture. We provide a structured
development program to help our
employees build skills and competencies
and develop leadership capabilities.
At Halliburton, the way we look out
for one another day after day and oursense of camaraderie engenders a highdegree of trust, which in turn fosters
respect for one another, the people wework with and the communities inwhich we live.
We prioritize health, safety andenvironmental stewardship. We remaincommitted to advancing our Journey
to ZERO, which is the Company’s pathto achieve zero safety incidents,
environmental incidents and nonproductive time every day, on every
job. At Halliburton, environmental
stewardship includes the developmentof new technology that seeks tominimize social and environmental
impacts while delivering value to ourcustomers. We make signiﬁcant
investments in research and development to create solutions that allow
our customers to maximize the valueof their assets – while helping them
reduce energy and water usage, curb
emissions and shrink their environmental footprint. For example, our surface
equipment is among the cleanest

available, and it comprises the largest
ﬂeet of Tier 4-compliant diesel engines
currently in operation in the U.S. In
addition, Halliburton is developing andplanning to deploy electrically poweredpressure pumping equipment going
forward. We have also made signiﬁcant
investments in our surface efﬁciency
strategy, including the ExpressSand™
containerized proppant delivery system,
which has helped to signiﬁcantly reduce
equipment and logistics needs, alongwith noise and dust generation on thewellsite. We have also developed new
chemistries and separation technologies
that enable the recycling of ﬂowback
water and help our customers reducethe volume of fresh water utilized inhydraulic fracturing operations.
In closing, we want to thank our
employees, our Board of Directors andour shareholders for the vital role they
all play in the success of Halliburton.
In 2019, we celebrate 100 years since
our founder, Erle P. Halliburton, started
an oil well cementing business witha borrowed pump, a horse-drawn
wagon and a mixing box. Reaching ourcentennial is a milestone few companies
achieve and it is a testament to thehard work of our employees, whodeliver on our core values of integrity,
safety, creativity and reliability. Our
Company has innovated, collaborated
and executed through economic andindustry cycles to become a global
leader in oilﬁeld services and technology.
We look forward to our next century
and continuing to deliver superior
service and differentiating technologies
to our customers and strong cash
ﬂow and industry-leading returns to
our shareholders.

JEFFREY A. MILLER
Chairman of the Board,
President andChief Executive Ofﬁcer

LANCE T. LOEFFLER
Executive Vice President
and Chief Financial Ofﬁcer

LAWRENCE J. POPE
Executive Vice Presidentof Administration andChief Human Resources
OfﬁcerROBB L. VOYLES
Executive Vice President,
Secretary and General Counsel

ERIC J. CARRE
Executive Vice President
Global Business Lines andChief Health, Safety andEnvironment Ofﬁcer

MARK J. RICHARD
President,
Western Hemisphere

JOE D. RAINEY
President,
Eastern Hemisphere

3Halliburton Performance

NORTH AMERICA

2018 was a tale of two halves for
the North American market. During
the ﬁrst two quarters, Halliburton
capitalized on the steady growth in
rig count and completions intensityand delivered solid revenue andmargin performance. In the second
half of the year, the market softened,
as takeaway capacity limitations,customer budget constraints and a
sharp decline in commodity prices
curbed completions activity.
Halliburton is well prepared todeliver superior returns for ourshareholders in this dynamic market.
We are the leading service provider
in unconventionals – a unique andvaluable resource, capable of meetinga signiﬁcant portion of global oil andgas demand. As we have proven over
the years and again in 2018, ourinnovative technology, the quality of
our services, our customer alignment,
and our market presence in all U.S.
unconventional basins position us tocontinue helping our customers leadthe shale revolution into the future.
Our technologies differentiate us
from the rest of the market andare moving beyond the signiﬁcantsurface efﬁciencies achieved in thelast few years. We are focused on
developing technology that will
enable our customers to increase
well productivity. For example, in
2018, we introduced Prodigi™ AB
intelligent fracturing service thatbrings automation to hydraulicfracturing. Prodigi AB automates thebreakdown process of a fracturing

treatment. This helps increase
production from our customers’
assets, achieve consistent cluster
performance, and reduce wear andtear on our equipment. By the endof 2018, we had successfully deployed
Prodigi AB service across all U.S.
shale basins. It had been used on morethan 1,500 stages for 20 different
customers across the country.
Artiﬁcial lift is a critical capability
for unconventionals, as well as
mature ﬁelds, and Halliburton has
strategically invested to expand our
artiﬁcial lift portfolio. In 2018, our
Artiﬁcial Lift business achieved
43 percent sequential revenue growthand delivered outstanding margins.
We are the second largest ESP
provider in North America, andgrew our share of the business in
U.S. land in 2018, led by the Permianand the MidCon basins.
Looking forward to 2019, we willcontinue to build the foundation fora longer-term recovery. As North
American oil production reaches
historic highs and operators shift
their focus from production growth
to cash ﬂow generation, Halliburton’stechnology, people, customer
relationships and ﬁnancial discipline
position us to thrive. We intend torespond to the changing market
environment, reduce capital spending,develop differentiating technologies
and generate strong cash ﬂow. Aftera storied 100 years in North America,
Halliburton remains the leader in thisdynamic market.

2018 North America Highlights:$14.4 billion
Delivered $14.4 billion in revenue,
a 25 percent increase year over year.

Outperformed
Outperformed growth in North America
rig count.

Record Stage
Count
Achieved record stage count per
hydraulic fracturing crew, higher thanat 2014 peak.

4

Halliburton 2018 Annual & Sustainability ReportINTERNATIONAL

In 2018, we saw solid evidence ofthe long-awaited recovery in theinternational markets. This recovery
started with mature ﬁelds and was
spearheaded by the national oil
companies. National oil companies
look for a collaborative approachto tackling their various challenges– and collaboration is integral to
Halliburton’s value proposition.
Halliburton is better positioned thanever before to take advantage of thecontinuing international recovery.
We operate in over 80 countries andare a leader in the completion andproduction technologies that are
key to the development of matureﬁelds. Over the last few years, wehave signiﬁcantly increased our
product service line presence invarious geographies, expanded ourmanufacturing capacity in Singapore
and opened technology centers in
Saudi Arabia, India and Brazil.

2018 International Highlights:$9.6 billion
Delivered $9.6 billion in revenue,a 6 percent increase year over year.

Top Line Growth
Delivered top line growth in every
Eastern Hemisphere geography.

0.14

In 2018, we won several major
foothold contracts in different
geographies. For example, ourunconventional contract with Saudi
Aramco represents the largest
unconventional completion contractever awarded in the Middle East.
In Norway, we secured several large
offshore contracts and improved ourmarket share through collaboratingand engineering solutions withour customers.
One key to competing in theinternational markets is reliable andeconomic drilling technology. In 2018,
Halliburton launched the iCruise™
rotary steerable system. It is themost intelligent drilling tool on themarket. The iCruise system delivers
fast drilling, accurate well placement
and reliable, repeatable performancefor our customers. Thanks to thesimple, modular design of this tooland its self-diagnostics capabilities,
maintenance takes less time, which
increases asset velocity, reduces
repair and maintenance costs andimproves returns for Halliburton. In
2018, this new drilling technology
achieved successful test runs forseveral customers in the Middle East,and delivered the longest lateral andlongest well in Argentina’s Vaca
Muerta shale in our ﬁrst deployment.
Halliburton entered the reactive
chemistry space in 2018 throughthe acquisition of Athlon Solutions.
Athlon is a manufacturer of chemicals
for the upstream oil and gas industry
and is a leading provider of specialty
water and process treatment
chemicals. Halliburton now has
expertise in reactive chemistry
and facilities, which is critical forinternational mature ﬁelds markets.
This acquisition supports our ongoing
efforts to manufacture chemicals
in the Eastern Hemisphere in orderto reduce transportation hazards
and to be closer to our internationalcustomer base.
Overall, our existing contracts andthe pipeline of international projects
are stronger coming into 2019. With
the activity pipeline improving acrossall regions, Halliburton will strive
to selectively balance growth andreturns in the international markets.

Registered Total Recordable Incident
Rate of 0.14 in the Eastern Hemisphere– the lowest in our history.

5

About Halliburton

Health, Safety &Environment (HSE)

Technology& Innovation

Deliver superior value forour shareholders

Conduct operations that are safeand environmentally responsible

Lead the industry in innovationand conscientious stewardshipof global resources

INTENT ▼To outperform our competitors bydelivering superior growth, margins
and returns to our shareholders

To advance on our Journey toZERO, toward our vision of zero
health, safety, environment orservice quality incidents

To develop solutions that give ourcustomers economic access to newhydrocarbon resources and maximize
the value of their existing assets$24 billion

>100

39th

We generated $24 billion of total
Company revenue, a 16 percent
increase from 2017, with improvements across all of our productservice lines globally.

Halliburton received greaterthan 100 customer and industry
HSE awards.

Halliburton was 39th in U.S. patents
granted in 2018 and the only oil andgas company in the top 50.

87 percent$390 million

40 percent

Through initiatives such asenhancing our New Hire Employee
Orientation program, Halliburton
saw an 87 percent increase in HSE
Training Hours from 2017.

Total research and development
spend increased by 8 percent year
on year to $390 million.

121,000

Halliburton achieved industry-leading
patent efficiency, with 1.8 patents
granted for every $1 million ofresearch and development spend,an improvement from 1.4 in 2017.

PRINCIPLE ▼Financial
Performance

ACHIEVEMENTS ▼GUIDING PRINCIPLESON SUSTAINABILITY

In our Completion and Production
division, we capitalized on themarket recovery in North America,delivering operating income growthof 40 percent year over year.

$1 billion
We continued our focus on returning
capital to shareholders through share
repurchases and dividends, which
totaled over $1 billion in 2018.

Approximately 121,000 Safety
Data Sheets (SDSs) and labels in
37 languages are available throughour website.

1.8 patent efﬁciency

7 awards
In 2018, Halliburton received 7 awards
for our technology and innovation
efforts; including World Oil, Harts
MEA and OTC awards.

ETHICS AND INTEGRITY ARE THE FOUNDATIONFOR OUR GUIDING PRINCIPLES.
6

Halliburton 2018 Annual & Sustainability ReportGlobalCitizenshipTransparency

Collaboration

Enhance the economic and social
well-being of our employees and thecommunities in which we operate

Maintain transparency in reportingand validating our progress

Engage our stakeholders to help
achieve results that are compatible
with our stated principles

To be a preferred employer and makea positive impact in the communities
where we live and work

To provide our stakeholders withthorough and timely information on
our progress

To actively communicate withkey stakeholders to help achieve
mutual objectives$1 million

18

100 percent

Halliburton Foundation contributed$1 million to U.S.-based schools
and higher education institutions
through the University Advisory
Board to support the advancementof STEM studies.

Halliburton executives presented at
18 industry events last year, including
Barclays CEO Energy Conference in
New York City, and an HSE Panel at
the Society of Petroleum Engineers
meeting in Abu Dhabi.

During on-boarding, Halliburton
requires 100 percent of potential
suppliers to undergo a risk-evaluation
process that covers export controls
and sanctions screening, insurance
veriﬁcations and safety training for
onsite vendors.

$1.9 billion

669 reports

Halliburton corporate philanthropy,
including in-kind donations andemployee giving, totaled over
$1.9 billion in 2018.

Global Ethics and Complianceaddressed 669 reports in 2018.

48 percent

Members of our senior
management team participated inover 100 investor meetings.

Halliburton increased female
candidacies for key operational rolereadiness by 48 percent.

>100

23 percent
Overall Company female professional
hiring rate for 2018.

>80 percent
More than 80 percent of our procurement spend was with suppliers
located within the region where ouroperational activity took place.

39
Halliburton partnered with
24 universities around the world
on 39 research and development
projects.

192
We collaborated with customers on
192 research and development projects in order to engineer solutions tomaximize the value of their assets.

Built on a solid foundation of ethics and integrity, our Guiding Principles
for Sustainability provide the framework for our operations and our future.
To ensure these principles guide every aspect of our decisions, plans andactions, we have matched each with a clearly deﬁned intent.

7About Halliburton

OUR MISSION, VISION& VALUES
MissionTo achieve superior growth and returns for our shareholders by delivering technology
and services that improve efﬁciency, increase recovery and maximize production forour customers.
Our mission as a Company identiﬁes what we do today, why we do it and for whom,
while our vision deﬁnes what we aspire to be and gives us an image of what successwill look like. Our values are our corporate DNA, the foundation for how we relate
to each other and every individual and entity with whom we interact. These are theprinciples that every Halliburton employee and the companies with which we dobusiness are expected to use, live by and demonstrate on a daily basis.
We listen and respond to our stakeholders’ suggestions and recommendations tocreate value through our services and business practices. We incorporate continuous
improvement into all facets of our business, from research and development, tobuilding our Halliburton teams, to delivering sustainable solutions to our customers.

At Halliburton, we collaborate andengineer solutions to maximize asset
value for our customers.

VisionTo deliver a customer experience second to none, as globally competitive, creativeand ethical thought leaders.
Values•Integrity: Ethics and integrity are the foundation of our brand and the guiding
principles for all we do.

•

Safety: Priority number one. We are focused on our own personal safety as wellas the safety of others.

•

Collaboration: We work together with customers and understand that everyone
has a role in providing the best solution.

•

Competition: We compete to win. We know that competition makes everyonestronger.

•

Creativity: We are resourceful. We are innovative and strive to apply the righttechnology and solution every time.

•

Reliability: We deliver what we promise. We believe the quality of our service
deﬁnes who we are.

•Respect: We are honest with ourselves and each other. We value our diverse skills
and talents, and know we are stronger together as one family.

With approximately 60,000 employees, representing 140 nationalities in over
80 countries, we help our customers maximize value throughout the lifecycle of
the reservoir – from locating hydrocarbons and managing geological data, to drillingand formation evaluation, well construction and completion and optimizing production
throughout the life of the asset. We serve major, national and independent oil andnatural gas companies throughout the world and operate under two divisions. These
divisions form the basis for the two operating segments we report, the Completion
and Production segment and the Drilling and Evaluation segment.
For more information on our operations and markets served, please refer to theHalliburton 2018 Form 10-K.

8

Halliburton 2018 Annual & Sustainability ReportOur BusinessHalliburton comprises 14 product service lines (PSLs). The PSLs operate in two
divisions: Drilling and Evaluation, and Completion and Production. Our Consulting andProject Management PSL works across both divisions and spearheads our integratedservices strategy. Its financial results are included in the Drilling and Evaluation
division. PSLs are primarily responsible and accountable for strategy, technology
development, process development, people development and capital allocation.

Drilling and Evaluation Division

Completion and Production Division• Baroid• Artiﬁcial Lift

• Drill Bits & Services• Cementing• Landmark• Completion Tools• Sperry Drilling• Multi-Chem• Testing & Subsea• Pipeline & Process Services• Wireline & Perforating• Production Enhancement• Production Solutions

Supporting Both Divisions• Consulting and Project Management

GLOBAL LOCATIONSEurope, Eurasia,
Sub-Saharan Africa

2

38
8,505
1

26,876
7

North America

13
Operations:■ North America■ Latin America■ Europe, Eurasia, Sub-Saharan Africa■ Middle East, North Africa, Asia Pacific

7,371
1

16,9893
Latin America

00
000
0

29

Number of countries per region2018 period ending headcount per region
Major technology centers per region

Middle East,
North Africa,
Asia Pacific

We have manufacturing operations in various locations, including the United States,
Canada, Malaysia, Singapore and the United Kingdom.

9About Halliburton

MATERIALITY

Halliburton previously conducted a comprehensive materiality assessment to
identify topics that are material to our long-term sustainability. The assessment,
which is reviewed annually, integrated internal and external stakeholder input toidentify priorities and opportunities for corporate sustainability strategy and reporting.
Engaging stakeholders in this process enables testing and validation of the results of
the analysis and ensures that the expectations and input of all groups are considered.
Material topics were evaluated on the potential magnitude and significance of theireffect on Halliburton activities and to our stakeholders. Our criteria for evaluation
includes the impacts and opportunities presented by regulatory and policy changes,
financial trends, environmental issues and societal concerns.
Based on our continued engagement with shareholders, customers, industry
groups, our Board of Directors (Board), our employees and other key stakeholders,
we have expanded discussions on diversity and inclusion to include additional initiatives,
corporate governance and business ethics to include human rights and environmental
stewardship to include climate change. We validated our updated materiality outcomes
during internal interviews with key Halliburton subject matter experts as a crucial stepin preparing this report. We asked interviewees to review the importance of material
topics and express their opinions on material and emerging topics in their area ofexpertise. We will continue to update our materiality assessment in 2019.
MATERIAL TOPICS

Economic• Corporate governanceand business ethics(including human rights)• Economic performance• Supply chain

SocialEnvironment• Health, safety

and wellness

greenhouse gases• Diversity and inclusion• Community

engagement

sustainability• Energy and• Environmental

stewardship(including climatechange)Italic text denotes expansion of topic in 201810

Halliburton 2018 Annual & Sustainability ReportHIGHER

MATERIALITY MATRIX

HSW
GG

LOWER

Importance to stakeholders

CG
CE
DI
EP

SCS
ES

MODERATE

HIGH

Impacts on the business

LOWER● Economic● Social● Environment

VERY HIGH

CG

Corporate governanceand business ethics
EP
Economic performance
SCS Supply chain sustainability
DI
Diversity and inclusion

HIGHER

CE Community engagement
HSW Health, safety and wellness
GG Energy andgreenhouse gases
ES Environmental stewardship

Our assessment of materiality is aligned to industry best practices, including the
Global Reporting Initiative (GRI), the Dow Jones Sustainability Indices (DJSI), CDP(formerly known as the Carbon Disclosure Project), the International Petroleum Industry
Environmental Conservation Association (IPIECA) Oil and Gas Industry Guidanceon Sustainability Reporting, the United Nations Sustainable Development Goals(UN SDGs) and the Sustainability Accounting Standards Board (SASB) Oil and Gas
Services Standard.
We have applied the four GRI Reporting Principles to define our report content.
Stakeholder Inclusiveness is ensured by listening to feedback from stakeholder
engagement.*
We considered the Context of our local and global-level operations when determining
the relevant topics to assess, report and prioritize.
The Materiality of topics is defined by considering (1) main sustainability topics
raised by Halliburton stakeholders; (2) relevance of topics for Halliburton business;(3) potential impacts to business; and (4) potential for Halliburton to influence or
impact the topic. For the purposes of this report, significant locations are definedas those representing more than 10 percent of total revenue.
Completeness: We include all of the Company’s material impacts and topics in thiscombined annual and sustainability report. Through our report development, we
conducted interviews and collected applicable data to ensure that all relevant entities
with significant impacts regarding material topics are providing data for inclusion.
* Stakeholder Engagement data provided on page 54

11

12

Halliburton 2018 Annual & Sustainability Report

HALLIBURTON
MANAGEMENTSYSTEM
Health, safety and environmental (HSE) and service quality (SQ) management
are fundamental to Halliburton operations. Our ability to collaborate with ourcustomers and engineer solutions to maximize asset value depends on industryleading performance in each of these areas. HSE is one of our Guiding Principles
for Sustainability and has direct oversight by the Board HSE committee. We havepolicies and procedures in place that deﬁne how we work, which empower our
employees’ commitment to safety 24 hours a day, seven days a week.

Journey to ZERO
Journey to ZERO is the Company’s vision to achieve ZERO safety incidents,
ZERO environmental incidents and ZERO non-productive time. This vision
expresses our commitment to our employees, our customers and our communities,
and articulates our priorities – to set the highest standards, embrace the challenge andmake no compromises in execution. Our leadership commitment, robust management
system and the competencies and commitment of our people are core elements ofour success and provide the foundation of our Journey to ZERO.
We have defined six elements that provide a roadmap for achievement. While specificfocus areas evolve annually, these elements remain consistent each year:
1. Leadership Commitment
2. Continuous Improvement of the Halliburton Management System (HMS)
3. Training and Competency
4. Communicate and Address Risk
5. Technology and Process Improvement
6. Verify Performance

Halliburton Management System
The Code of Business Conduct is set by the
Executive Committee and applies globally.

Code of Business Conduct

COBC

1,276
Halliburton offers 1,276 HSE training
courses to our employees.

29 percent

Policies are formal statements developed bymanagement. Policies define the intent and conductof company business.

Business Practices

Business practices support company
policies. They present underlying
performance expectations.

Policies and Business Practices apply
to the entire company and are managed
by the Law Department.

Non-productive time rate has
been reduced by 29 percent in thelast ﬁve years.

Global HMS, HSE andFunction/PSL Standards>100
Halliburton received greaterthan 100 customer and industry
HSE awards.

Policies

The Global HMS Standards
and HSE Standards aremanaged by Global HSE/SQ.
PSLs and Support Functions
develop Standards, Process
Maps and Work Methods
to define their work.

Process Maps

Work Methods

Standards further define
elements within the systemthat affect final outputs.

Process Maps describe
activities, responsibilities andinterfaces needed to achievea given service or product.

Work methods describe
the detail of a specificwork activity, task orbusiness event.

13

The Halliburton Management System governs how we work and supports theexecution of our Journey to ZERO. The standards, processes, guidelines and work
methods that make up the HMS ensure that our employees and contractors areequipped with the necessary knowledge to work safely, consistently and effectively.
All Halliburton contractors and employees are required to conform to the HMS.

7,657

36,485

3,819

1,496,576

2,800,049

1,164,599

Our HMS is designed to meet or exceed expectations of regulators, customers andour own internal standards for health, safety and the environment. Our operations
are also conducted in conformance with industry standard certiﬁcation programs,
including those for quality management (ISO 9001), environmental management(ISO 14001) and health and safety management (OHSAS 18001).
A key element of the HMS is the use of Control Points, which serve as the pillars
of prevention to avoid HSE and SQ incidents. Control Points simplify our service
delivery process by aligning roles and responsibilities so everyone in the organization
understands their roles in execution of our service delivery. Simplifying our processes
in this way, and verifying execution, drives continuous improvement to our delivery ofservice and operational efﬁciency. This supports our value proposition to maximize
asset value for our customers, while minimizing the environmental and social impactsof our operations.
TRAINING AND COMPETENCY

16

17

18

Hours of
HSE Training

16

17

18

Stop Work
Authority

All employees are required to complete introductory HSE training to reinforce theHalliburton core principle of safety in all that we do. Additional activity-speciﬁc
employee training, administered through our HSE representatives in all regions,ensures that our employees are empowered with the knowledge necessary to
execute their jobs safely and responsibly. For specialty job functions, such as radiation
safety, speciﬁc training curricula are imbedded in our automated learning management
system and linked to individual employees to ensure that mandatory training isdelivered and completed as required. Halliburton offers 1,276 HSE training courses
to our employees.
Our commitment to safety extends to our contractors as well. We require allcontractors working at Halliburton sites to conform with Company standards ascommunicated through our contractual agreements, our “20 Contractor Rules”,
site check-ins and safety brieﬁngs.
STOP WORK AUTHORITY

Our global Stop Work Authority (SWA) program plays a key role in preventing
incidents. All employees and contractors have the authority – and the responsibility– to stop a task if they observe an unsafe action or condition at a worksite, or havea concern regarding the control of an HSE or SQ risk. Employees are empowered touse their authority and responsibility to shut down their own work or the work ofothers anytime they observe an unsafe condition or service delivery issues thatwould impact service quality, with full support of their team and/or manager. In 2018,
we emphasized the importance of the SWA reporting, and enabled our employees
to better track and register this information in our HMS.
TIERED ASSURANCE PROGRAM

Our tiered assurance program is a systematic self-veriﬁcation process that isfundamental to our drive for continuous improvement in HSE/SQ. It consists of ajob-site or location assessment, a management system assessment and global

14

Halliburton 2018 Annual & Sustainability ReportEARTHSTAR™ ULTRA-DEEP RESISTIVITY SERVICEThe EarthStar ultra-deep resistivity service illuminatesand maps reservoir and fluid boundaries more than 200 feet
(61 meters) from the wellbore. In deepwater and maturefields, this technology helps operators to maximize asset
value and plan for future field developments by mapping
pockets of hydrocarbons, allowing for real-time steering
decisions, and eliminating costly pilot holes and sidetracks.
The EarthStar service extends the sensitive range up to
10 times farther from the wellbore than was previously
possible. It combines very-deep-reading resistivity measurements with azimuthal sensitivity and advanced inversion
processing to provide estimates of the position, resistivity,and orientation of formation layers around the wellbore,along with the position of reservoir fluids within them. This
information allows for improved evaluation of reserves andmore efficient field development. EarthStar applications tomaximize asset value are:Geostopping: Reduce well time and cost per barrel of oil
equivalent by eliminating costly pilot holes and avoiding
drilling hazards. Detect target zones early and land the
production lateral in a single drilling run. Drill precisely
and confidently to casing points immediately above criticalreservoir boundaries, such as over-pressured zones, in orderto minimize well-control risks.
Geosteering: Drill to produce by positioning the well optimallyin the sweet spot to maximize production, avoid unwanted
reservoir exits and maximize non-productive intervals. Make
well-placement decisions early while drilling, and steer
confidently within large and complex wellbore structures.
Geomapping: Enhance reservoir understanding by mapping
surrounding formation boundaries and estimating the volume
of hydrocarbons in place. Identify bypassed pay zones to gain
more reserves and facilitate future well planning. In maturefields, improve understanding of fluid movements due to
production or water injection.

oversight through our Internal Assurance Services. For SQ, managers perform
job-related assessments during visits to operational locations, focusing on well sites
and workshops. Results are used to assess and verify that the HMS and processes
are being implemented in all work locations. In 2018, we assessed our tiered
assurance program for opportunities to improve efﬁciency, context and consistency
across our system. We will implement program reﬁnements in 2019.
INCIDENT INVESTIGATION AND CAUSAL ANALYSIS

Rigorous investigation of incidents and our prioritization of incidents in terms ofseverity and consequence are crucial components of HSE/SQ. We track near misses
as a predictive leading indicator, to compile trends on incidents where the potential
for harm was present, even though nothing occurred. We classify a near miss as ahigh-potential incident if the conditions could potentially have resulted in serious
personal injury, property damage or adverse environmental impact. Investigation ofsigniﬁcant incidents through our Signiﬁcant Incident Review process brings immediatevisibility to high-risk incidents and enables timely and rigorous assessment todetermine root cause.
Every Halliburton location has a local emergency response plan. These plans include
detailed requirements for emergency response, including evacuation plans andmedical response. Halliburton also provides access to medical care for all employees
no matter where they are working.
TECHNOLOGY AND PROCESS IMPROVEMENT

The most effective way to control hazards is to ensure that they are not present tobegin with. To accomplish this, we focus on opportunities to improve our product andservice design to eliminate hazards, as practicable. Our Manufacturing organizationbuilds the products safely, outperforming the industry average, and our products aredesigned to have best-in-class safety performance while in use. LIFECYCLE covers allfunctions within Halliburton and is a critical element in the seamless collaboration of
product management, technology and our supply chain.

15

E-CD ™ PLUS AUTOMATED CONTINUOUS CIRCULATION SYSTEM

The Halliburton e-cd Plus continuous circulation systemprovides an automated means for performing continuous
circulation drillpipe connections while drilling, tripping or running
liners. e-cd Plus enhances what was historically a manual processwith a system that removes personnel from the red zone areaaround the drill pipe to increase safety and reduce operator effort,
risks and non-productive time, all while maintaining the same designfor the e-cd circulating sub and diversion manifold to maintain a
10 year service history of this technology. Efficiency is improvedby reducing overall connection time, and the system allows
for seamless integration with other equipment and real-timemonitoring by means of software and automation.
e-cd Plus is particularly valuable in regions or with customers
with rig floor red zone limitations for personnel, allowing Halliburton
to continue to drive the size of the global market for continuous
circulation technology. Trialed in 2017, this technology was first
introduced as a partial system on a commercial job in 2018, andthe full system in Q1 2019.

DATASPHERE ® L IN X ® SYSTEMThe DataSphere LinX behind-casing monitoring system enables
permanent monitoring of the well and reservoir without having
to drill separate, dedicated monitoring wells. This reduces theemissions and energy spent on drilling dedicated monitoring wells,
and lowers the threshold to implement well and reservoir integrity
monitoring. The LinX system also significantly reduces the riskof seepage to the seabed on shallow injectors; verifies cap rockintegrity, which if compromised can lead to major environmental
and financial impacts; and permanently monitors cement integrity
to manage sustained casing pressure, which is a well integrity
issue worldwide.

16

Halliburton 2018 Annual & Sustainability Report

ENHANCED SINGLE-TRIP MULTIPLE ZONE (ESTMZ™) SYSTEMThe Enhanced Single-Trip Multizone (ESTMZ) system is ahigh-rate frac pack system that helps increase completion efficiency
by reducing the number of workstring trips to install and treat
new or existing wells. It also reduces the completion time between
treating individual intervals. By running and completing all intervals
in a single workstring trip, along with increased frac-pack completion
efficiency, deepwater operators can have a conservative estimatedsavings of 20+ rig days and $15 million+ dollars in completion
installation cost. The system can pump up to 3.75 million poundsof high-strength proppant per well, at maximum pump rates of
45 barrels per minute, which brings higher productivity from eachzone. The ESTMZ system can improve bottom-line economics forchallenging wells with multi-layered completion intervals by
increasing production and reducing installation costs.

Halliburton vice president of innovation leads our efforts to build a sustainablenetwork to identify and acquire new technologies from sources outside ourindustry. We will also explore the potential applicability of our current portfolioof technologies, intellectual property and technical competencies outside
traditional oil and gas markets.

Halliburton was granted 896 U.S. patents in 2018, an increase of 10 percent over our
previous high of 813 in 2017. Patent efficiency also improved, rising to 1.8 U.S. patents per
million dollars of research and development investment. Our 2018 research and development
spend was $390 million, an increase of 8 percent over 2017 spend ($360 million).
Our reported number of patents granted in 2018 includes Halliburton acquisitions, divestituresand filings that were not reflected in public databases at year end.
IFI Claims, a database provider of U.S. patent data, has ranked Halliburton as the 39th largest
receiver of U.S. grants in 2018 (up from 44th in 2017) and 1st in the oil and gas industry.

2016

2017

2018

Total Research and Development Spend (in millions):

$329

$360

$390

R&D Spend as a percent of revenue

2.10%

1.70%

1.60%

Patent Efficiency (U.S. patents per $1M ofresearch and development spend)

1.00

1.40

1.83

Patents Granted Per Year

571

813

896

17

In 2018, as part of our continuous
improvement, we implemented thefollowing initiatives to advance theprogress on our Journey to ZERO:OPPORTUNITY

We observed an increase in total
recordable incidents in 2017associated with new employees.

ACTIONWe enhanced our New Employee
Orientation program to include key focus
areas: refreshed Week 1 HSE trainings
for all new Halliburton employees;
incorporated Petroleum EducationCounsel (PEC) requirements into Safety
School training for field-level employees;
and added a technical week of hands-on,
PSL-specific training, including supervisor
oversight for field activity for all new
field employees.

OPPORTUNITY

Our training system, Learning
Central, was reviewed and modified
for course assignment applicability
per employee.

ACTIONWe refined global training assignments in
the Learning Central to clarify expectations
and streamline requirements to ensure
employees were assigned the right training
for their respective roles. The library ofcourses was optimized to retire outdated
titles resulting in a cleaner, less clutteredlibrary of truly relevant courses.

MANAGEMENT OF CHANGE

Our Management of Change (MOC) process is designed to control change-related
risk when we identify new risks or adjust the operations plan. The process requiresthat all operational and process changes be planned, reviewed and approved before
implementation to reduce the potential for service disruption or the creation of newhazards. Continuous improvement in HMS and execution of our Service Quality
Minimums have enabled us to reduce our non-productive time (NPT) rate by 29 percent
in the last ﬁve years.
HMS also meets and exceeds the requirements of industry-speciﬁc American
Petroleum Institute (API) standards for manufacturing and service quality (API Q1
and API Q2), and the API RP 75 standard for offshore safety and environmental
management. API Speciﬁcation Q2 Certiﬁcation is a risk-based quality management
system approach that focuses on competency, service design, contingency planning,supply chain controls, preventive maintenance, inspection, service quality plans
and management of change.
Halliburton leads the industry with 38 API Q2-certiﬁed facilities, located in 12 countries.
In 2018, UAE, Angola and Canada obtained certiﬁcation, while Oman began theprocess of certiﬁcation.
We strive to achieve our goal of sending every employee home safe and healthy
through a consistent focus on the areas of greatest risk inherent to our business anda commitment to continuous improvement across our activities.
HSE REPORTING• Established standardized
OPPORTUNITY

HMS tracks detailed information on
root causes of incidents and nearmisses for specific work activities.

methods of data collection
and reporting procedures,
communicated throughout
all business segments.

• Verified that data provided• Assessed results toby business segments
is accurate, complete
and reviewed. Final data
underwent executivelevel approval.

identify trends andunderstand driversof change.

ACTION

We consolidated our incident reporting
system connecting incident reportingand investigations into one digitizedglobal system that will help us transmit
key learnings across all our operations.

18

Halliburton 2018 Annual & Sustainability ReportO NE V IEW ™

Digitization is of strategic importance to Halliburton and istransformational in terms of the speed and effectiveness ofmanaging the HSE and SQ information generated by our worldwide
operations. We are able to drive far more value from our data
through automated workﬂows and processes, which sets the pace
for future innovation.
We accomplish this through OneView, our integrated HSE andSQ enterprise data management system. By consolidating ourlegacy systems, we are able to centrally track and monitor dataand processes such as:• Incidents and near misses• Stop work authority• Observations• Management of change• Critical well reviews• Risk assessments• Internal and external audits• Regulatory compliance

OneView enhances our ongoing commitment to achieve ourJourney to ZERO by providing a single, integrated view of
HSE and SQ information. It streamlines how we perform key
business-critical tasks, improve customer service and provide
action-oriented information.

Service Quality
Our commitment to service quality is an integral part of our culture and of ourJourney to ZERO vision. The Service Quality Minimums are the essential elementsof how we do our work, and these apply to all operations across all product service
lines. They present four key practices that enable us to deliver excellence in execution,
through process adherence and continuous improvement.
Leadership
Commitment

1. Design of Service – How we plan our work:
Our Design of Service (DOS) process deﬁnes the documentation that captures theoperational plan and outlines how we will execute to customer requirements.

2. Control Points – How we control our work:
Control points are deﬁned requirements or activities that provide assurance that thejob purpose will be achieved. DOS and MOC are the two control points common to all
PSLs. All PSLs consistently deliver and execute their control points as part of each job.

3. Competency – How we ensure our people have the skills they need:
Our global competency program provides the knowledge, skills, behavior andexperience that enable our people to do the job.

VerifyPerformance

Technology
and Process
Improvement

HMS Continuous
Improvement

ZERO
Training andCompetencyCommunicate
and Address
Risks

4. Incident Investigation – How we improve performance:
Through our incident investigation process, all job and non-job-related incidents
undergo thorough and timely investigation to identify root causes and prevent
incidents from recurring.

19Driving
SafetyWork Permit

Personal
Protection
Equipment (PPE)

Lock Out/Tag Out (LOTO)

ConﬁnedSpaceWorking at
HeightChemicalHandling

DroppedObjects

Hand
Tools

Lifting andHoisting

HALLIBURTON LIFE RULES

10 to ZEROThe Halliburton Life Rules go hand-in-hand with our Journey to ZERO. The Halliburton Life Rules are 10 key factors that affect
employee safety. Based on our HSE standards, they are a tool to communicate critical requirements to prevent injuries toour employees. The Halliburton Life Rules are used in all our businesses and operations. They apply to every employee andevery contractor, in every region and operation.

Health and Safety
HSE AWARDS

In 2018, Halliburton received numerous
Health and Safety awards from customers allover the world, recognizing our commitments
and contributions to safety.
• One million hours LTI-free for the Pipeline& Process Services team in the UAE.
• Halliburton has been Green Star certified

by the Alaska Forum since 1999, receiving
an award for recertification to the programin 2018. The program awards companies
that practice waste reduction, energy
conservation and pollution prevention.
• Halliburton received the “Best Innovation

Award” from Total for our Batch Mixer
Retrofit Kit and the positive impact it hasfor personnel safety.
• In 2018, Halliburton received customer

recognition for demonstrating strong
cooperation with the customer’s safety
team, with high engagement in reinforcing
safety culture, performing at a high levelwith an unwavering focus on safety andfirst-class planning and execution.

We are active participants in the development of industry-best HSE management
practices, which reﬂect the values of the Halliburton safety culture. In 2019, we will
refresh the Halliburton Life Rules to align with the recommendations of the International
Association of Oil and Gas Producers. We support industry standardization efforts
to improve consistency in the way signiﬁcant hazards and safe work practices arecommunicated to our employees, our customers and other industry partners. What
won’t change is our commitment to minimize environmental impacts, control risks
and maintain safe work practices for all Halliburton employees and worksites.
Halliburton is committed to the continuous improvement of our processes to ensurethat we have the proper focus and are effectively managing change in the workplace.
In recognition of this principle, Halliburton will refresh the Critical Focus Areas
communications in 2019 to better execute and serve our customers by continuing
to achieve best-in-class HSE performance and service delivery.
Critical Focus Areas
The Critical Focus Areas are those areas that present the biggest risk for the occurrenceof HSE, process safety and service quality incidents. When conducting operations
involving any Critical Focus Area, extra attention and absolute adherence to ourprocesses are imperative. The Critical Focus Areas are:•Barriers – The physical measures, such as packers, plugs, blowout preventers(BOPs), surface valves, drilling ﬂuids or cement, that prevent gas or oil from ﬂowing
into the well from the formation and traveling to the surface.

•

Hydrocarbons to the Surface – Flow of gas or oil to the surface, such as in well
testing or well cleanup operations.

•

Trapped Pressure – Equipment in which a release of pressure could occur, suchas discharge iron, lab machinery, BOPs, cement heads, swages, wellhead pressure
control-equipment, pipelines, hoses, tanks or silos.

•

Well Proximity – The potential for collision with a producing or existing wellbore
while drilling.

•

Radiation and Explosives – Any surface activities involving a radioactive sourceor explosive material.

• In August 2018, GTIM HES Fly Campwas recognized for going 500 days without
an accident.

20

Halliburton 2018 Annual & Sustainability ReportGLOBAL RAPID INTERVENTION PACKAGE (GRIP SM )Total Recordable
Incident Rateper 200,000
hours worked■ 2018 Q3 Yearto Date (YTD)
International
Association ofDrilling Contractors(IADC) industry
average

Lost-Time
Incident Rateper 200,000
hours worked■ 2018 Q3 YTD
IADC industry
average

0.48

7

1

1

2.38

2.93

2.53

195

210**

199

18

0.34

17

0.30

16

0.20

0.13

18

0.10

0.40

17

0.12

0.37

16

0.66

0.37

GRIP is the industry’s fastest response to subsea loss of source
control – ready to be deployed anywhere, anytime, in 48 hours.
The GRIP not only includes the compact and air-mobile designed
Rapid Cap™ plus the air-mobile “Top Hat”, but also the necessary
manifolds, a variety of debris removal and cutting tools, andwellhead dispersant connectors. Coupled with Boots & Coots’industry leading Relief Well Service, the development of the GRIP
demonstrates a step change in subsea response by providing themost rapid response possible. GRIP won the 2018 World Oil Awards– Best Health, Safety, Environment/Sustainable Development –Offshore award.

16

17

18

16

17

18

16

17

18

16

17

18

Recordable Vehicle
Incident Rateper 1,000,000
miles traveled

Fatalities
per year

Near-Miss
Incident Rate*per 200,000
hours worked

High-Potential
Incidents
per year■ Employees■ Contractors*

Near-Miss incident rate does not include
Stop Work.
** Updated 2017 information using a consistentcalculation method.

21

E-FRACIn response to Halliburton’s shared corporate mission to reducethe industry’s carbon footprint and to be responsible stewards ofthe environment, Halliburton is testing new initiatives that include
electrified pumps. This innovative service directly addresses
ecological concerns by significantly reducing emissions and noise
pollution. The resulting benefits will empower our customers to
improve their ecological footprint easily, efficiently, and costeffectively, while also enabling us to deliver the same level ofservice they have come to expect from Halliburton.

Environmental Stewardship
At Halliburton, our commitment to drive improvement through mitigating theenvironmental impacts from our operations is integral to our overall strategy. Our
vision is to deliver long-term ﬁnancial value by managing risks and opportunities
associated with environmental issues, such as climate change, and to have a positive
impact on the communities in which we operate, now and for future generations.
Central to our strategy is an approach that evaluates the effectiveness of thesustainable environmental practices within our operations, our supply chain
and how we partner with our customers to achieve their environmental andsocial impact goals.
Energy and Greenhouse Gases
Energy consumption and greenhouse gas (GHG) emissions are major componentsof our Environmental Stewardship efforts and are material sustainability topics for
Halliburton. We strive to mitigate these associated environmental impacts directly
through improving the efﬁciency of our own operations. We are also committed toextending our efforts by offering products and services to our customers that enable
them to maximize the value of their assets while using less energy and generating
fewer emissions.
Halliburton is a leader in the deployment of diesel engines that meet the U.S.
Environmental Protection Agency Tier 4 standard. We work directly with engine
manufacturers and invest in research and development to reduce emissions fromthe equipment we design, manufacture and use. Today, Halliburton surface equipment
is among the cleanest available, and it comprises the largest ﬂeet of Tier 4-compliant
diesel engines currently in operation in the U.S. and Gulf of Mexico.

22

Halliburton 2018 Annual & Sustainability ReportILLUSION ® SPIRE DISSOLVABLE FRAC PLUG

1,382,496

130

106

58

Climate change is an issue of global signiﬁcance, which has mobilized a societal
imperative and call for action. With signiﬁcant potential impacts to both the environment
and the social well-being of global populations, our stakeholders, including shareholders,customers and regulators have expressed concern. We recognize the importance ofevaluating all of the economic, social and environment implications of climate change.
We are committed to increasing transparency and participating in the dialogue aroundclimate change in our industry. We believe that this is essential to our vision to create
sustainable long-term future value for our stakeholders and our commitment to
conduct business “the RED way”, Responsibly, Ethically and Diligently.

2,060,113

Climate Change

2,182,662

The Illusion Spire plug is the industry’s first fluid-efficientdissolvable frac plug. The Spire plug features a water-saving
element that reduces the amount of fluid being pumped per stage,
as well as allows operators to pump faster, thus spending lesstime on location. These efficiencies can materialize into time savingsof up to half of a day and fluid savings of several thousand barrels.
By virtue of being a dissolvable plug, this technology minimizes
or completely eliminates coiled tubing equipment at the rig site.
These types of efficiencies work to keep emissions and noiselevels to a minimum by reducing the amount of time on location.
In addition, the reduction in water usage directly impacts thedisposal and transportation burden that is often associated withhydraulic fracturing.

16

17

18

16

17

18

Short- and long-term priorities

Absolute
Emissions
thousand metrictons CO2e

Emissions
Intensity
metric tons
CO2e per million
U.S. dollars
revenue

26,89016,946■ Indirect Emissions■ Direct Emissions

25,686

Be involved in the development of effective public policy and regulation that isrational, market-based and efﬁciently addresses climate change priorities.
• Continue to seek reduction of the direct and certain indirect GHG emissions
from our business operations.
• Assist our customers in effective utilization of our portfolio of products andservices to help them reduce their GHG emissions in the development of theirhydrocarbon resources.
• Work with suppliers to reduce the environmental impacts throughout ourvalue chain.
• Inform our employees on climate change issues and what actions they can taketo reduce GHG emissions at and away from work.
• Include climate strategy in our internal research and development and productdevelopment processes.
• Work with research bodies and educational institutions to further the developmentof sustainable solutions for the oil and gas industry.
• Continue to report direct and certain indirect GHG emissions from our business
operations through our combined Annual & Sustainability Report and stakeholder
requests like CDP.
•

16

17

18

EnergyConsumption
thousand GJ■ Electricity■ Fuel23

THE B ARA O MNI ™ HYBRID SEPARATION SYSTEM

16

17

18

16

17

209,447

160,313373,870

2,646

1,924

1,174

New hybrid separation technology treats multiple waste
streams with a single, compact system to reduce costs andenvironmental impact. The Halliburton BaraOmni hybrid
separation system combines advanced solids control with
waste treatment capabilities to improve operational andenvironmental performances. The treatment, handling,
and transport of oil-contaminated drill cuttings, centrifuge
underflow and other waste streams can have a major impact
on customer approvals for expenditure and risk exposure.
The effective separation of hydrocarbons from drill cuttings
can help to significantly reduce disposal volumes sent tolandfill and the potential environmental impact of remaining
wastes while enabling the recovery or reuse of fluids. Hybrid
separation technology consumes 42 percent less energy thanconventional thermal treatment methodologies. Alternative
systems capable of delivering dry, separated solids are often
too complex and cost prohibitive for many land operations
and cannot effectively process drilling fluids.

18

Hybrid separation uses low heat in a high-vacuum environment
to produce pre-mix quality drilling fluids and dry separated solids,
while recovering up to 99.5 percent of the fluid. When processing
drilling fluids or drill cuttings, the residual oil content in theseparated solids is less than 1 percent total petroleum hydrocarbon.
The application of a vacuum reduces the boiling point required
to volatilize the liquid components, resulting in lower energy
consumption and output fluids with no thermal degradation.
The technology can be used at the rig site, waste pit or centralized
facility to recover valuable base fluids and reduce disposal
volumes. Hybrid separation technology expands current industry
capabilities and reduces the operational footprint of traditional
solids control and waste management equipment setups. As aresult, operators can minimize waste transportation, offsite
treatment and storage to reduce environmental exposure andtotal cost of ownership.
The BaraOmni hybrid separation system was the 2018 winner of
the “Best Health, Safety, Environment / Sustainable DevelopmentOnshore” World Oil Award.

WATER

Halliburton recognizes that water is one of the world’s most valuable resources,
and we have been applying our experience and technologies to water management
challenges for nearly a century. Many of our locations are implementing water-reduction
projects such as: heating, ventilating and air-conditioning system optimization; andrecycling or reusing water used for process cooling, vehicle washing, chemical
blending and landscape irrigation.
We are committed to helping our customers reduce the volume of fresh water utilized
in hydraulic fracturing operations. We have developed new chemistries and separation
technologies that enable the recycling of ﬂowback water to be used in a wide range of
geographies, replacing fresh water that would typically be used in these operations.
WASTE MANAGEMENT

Water
Consumption
thousand m3

Waste
metric tonnes■ Non-Hazardous
Waste■ Hazardous
Waste

At Halliburton, we actively work to minimize waste. Our facilities have waste
minimization and management plants, which meet and generally exceed local
regulations, where required. Waste minimization, in all forms, is fundamental to our
LIFECYCLE process used for the development of products and services. We also
audit waste service providers to ensure appropriate waste treatment and disposal.
As a result of reductions in the volume, type and complexity of hazardous waste
streams, we were able to eliminate the need to operate and maintain a Part B
Hazardous Waste Treatment, Storage and Disposal Facility (TSDF) for the ﬁrst
time since 2001. The combination of our waste reduction and reuse efforts, aswell as streamlined transportation and handling, resulted in avoided costs of over
$5 million, per annum.

24

Halliburton 2018 Annual & Sustainability Report

E QUI F LOW ® AUTONOMOUS INFLOW CONTROL DEVICE (AICD)

142

1,034

$552.8

$46.5

$38.5

Chemical Stewardship

208

The EquiFlow autonomous inflow control device is a simple
device that addresses unwanted water or gas production. The
restriction of unwanted fluid stimulates oil flow in adjacentcompartments, thereby increasing oil production. EquiFlow AICD
has no moving parts, no elastomeric seals, no communication tosurface and absolutely no need to intervene for the life of thecompletion. The device can impact the economics of many open
hole completions globally by reducing the cost of water/gas
treatment and disposal at the surface. The AICD improvescompletion reliability and efficiency by smoothing production
throughout the interval, reduces disposal cost and potential
environmental impacts and increases ultimate oil recovery.

16

17

18

16

17

18

Chemical stewardship plays a key role at Halliburton in our overall commitment
to sustainability and the responsible management of the HSE components of the
products and services that we provide to our customers worldwide. We believethat to be a sustainable service provider, Halliburton should adhere to ﬁve basic
chemical stewardship principles:

Our Chemistry Scoring Index (CSI) is a risk assessment process that compares
the relative risks associated with the use of Halliburton chemical products in oil andgas operations. Using the CSI, our customers can compare Halliburton chemical
products within the same class of use and application, enabling them to choose
those products that optimize performance and minimize potential HSE risks.

•

All Halliburton chemical products are backed by SDSs, which comply with the latest
regulatory requirements, including the Globally Harmonized System of Classiﬁcationand Labeling (GHS). Approximately 121,000 SDS and labels in 37 languages areavailable through our website.

•

We have made detailed information regarding our fracturing ﬂuid composition andbreakdown available on the Halliburton website. We have also proactively developed
processes to provide our customers with the chemical constituents of our hydraulicfracturing ﬂuids to assure compliance with state laws as well as voluntary standards
established by the Chemical Disclosure Registry, FracFocus.

HSE Fines
and Penalties
U.S. $1,000■ 700 cubic
meters attributable
to a single firesuppression systemwater leak

0.05

•

Total Volumeof Spills
cubic meters

0.04

Halliburton is recognized as an industry leader for the digitization of our Safety
Data Sheet (SDS) data and integration into our Chemical Stewardship Management
System. By transforming how our product chemical data is managed, we are able todrive far more value to our operations and customers through the use of automatedregulatory tracking alerts, integration into chemical import and export clearance andproactive impact analysis to support sustainable market development. Our chemical
stewardship principles ensure that the purchase, use, distribution and development ofchemical products are accomplished in a manner that promotes social responsibility,
safety and sustainability throughout their lifecycle.

0.04

1. Accountability and Leadership
2. Stakeholder Communication and Engagement
3. Risk Management
4. Continuous Improvement
5. Chemical Stewardship Management System

16

17

18

Recordable
Environmental
Incident Rateper 200,000
hours worked

25

26

Halliburton 2018 Annual & Sustainability ReportCORPORATE
GOVERNANCE,
BUSINESS ETHICS& STAKEHOLDERENGAGEMENTOur Guiding Principles for Sustainability are built on a foundation of ethics and integrity.
The Company acts on our commitment to ethical behavior through the oversightprovided by our Board, our Code of Business Conduct (COBC), our employment practices
and our internal assurance function. Our internal assurance function is managed by an
executive leader who reports directly to the Audit Committee of the Board.

Corporate Governance
Board Oversight and Committees
Halliburton Corporate Governance Guidelines are reviewed annually and serve as a
guidepost for the Board. Topics pertaining to corporate citizenship, governance andsustainability are routinely reviewed at meetings of the Board and its committees. The
Board provides the final review of the Annual & Sustainability Report prior to publication.
BOARD COMPOSITION AND DIVERSITYThe Halliburton Board provides comprehensive oversight of the management
and governance of the Company. During most of 2018, our Board had more than
10 members. All directors stand for election at our annual meeting of shareholders,
and, except for the Chairman of the Board and Chief Executive Officer, all directors
are independent as defined by the New York Stock Exchange. The Board has also
designated one of its senior independent members to act as Lead Director.

58
Halliburton has 58 Local Ethics Ofﬁcers(LEOs) across 42 countries who serve asa local link for employees to Global Ethics
and Compliance.

40,834
A total of 40,834 Halliburton employees
received Code of Business Conduct
training in 2018.

The Board’s Nominating and Corporate Governance Committee performs the annual
evaluation of Company director criteria, Board diversity profiles, skills and experience.
This committee also performs assessments of the Board, committees and individual
directors, considers recommendations from shareholders and directors, and proposes
directors for the Company’s annual Board elections. Board members, our management or a third-party executive search firm identify suitable director candidates. The
qualifications for Board candidates are detailed in our 2019 proxy statement.
For additional detail on our Board composition and Committees, please refer to theHalliburton Governance and Investor pages of the Halliburton website, as well as the2019 proxy statement.
COMMUNICATION WITH THE BOARD OF DIRECTORSOur management and Board encourages transparent and open communication withshareholders, employees and all interested parties.

18
Halliburton executives presented at
18 industry events last year, including
Barclays CEO Energy Conference in
New York City, and an HSE Panel at theSociety of Petroleum Engineers meetingin Abu Dhabi.

27

BOARD OF DIRECTORS

Abdulaziz F.
Al Khayyal 3 4
Retired Senior Vice
President of Industrial
Relations, Saudi Aramco

William E. Albrecht 2 3
Non-Executive Chairmanof the Board of
California Resources
Corporation

M. Katherine Banks
Vice Chancellor ofEngineering and National
Laboratories, The Texas
A&M University Systemand Dean of Engineering
at Texas A&M University

Alan M. Bennett 1 4
Retired President andChief Executive Ofﬁcer,
H&R Block, Inc.

James R. Boyd 1 2Retired Chairmanof the Board,Arch Coal, Inc.

Milton Carroll 2 4
Executive Chairman of
the Board, CenterPoint
Energy, Inc.

Board of Directors’committees:
Audit Committee
Compensation Committee
3
HSE Committee
4
Nominating and Corporate
Governance Committee
1
2

Nance K. Dicciani 1 3
Non-Executive Chair of
the Board of AgroFresh
Solutions, Inc.

Murry S. Gerber 1 2
Retired Executive
Chairman of the Board,
EQT Corporation

Patricia Hemingway Hall
Retired President andChief Executive Ofﬁcer
of Health Care Service
Corporation

Shareholder Engagement
We contacted 30 of our largest
stockholders, representing morethan 52 percent of our outstanding
common stock to obtain theirviews on our executive program,compensation and ESG matters.
We met with stockholders,
representing approximately
31 percent of our outstanding
common stock.

28

Robert A. Malone 2 4
Executive Chairman,
President and Chief
Executive Ofﬁcer,
First Sonora
Bancshares, Inc.

Jeffrey A. Miller
Chairman of the Board,
President andChief Executive Ofﬁcer,
Halliburton Company

HSE AND SUSTAINABLE DEVELOPMENT COMMITTEE

The HSE and Sustainable Development (SD) Committee is charged with oversightof HSE and SD matters – including annual strategies, HSE performance and the HSE
audit program – and is accountable to the Board HSE Committee. The Company’s
executive vice president for Global Business Lines is chief HSE officer and chair of the
HSE and SD Committee, and reports at each meeting of the Board HSE Committee.
The Committee examines significant HSE incidents, with particular attention given topotential violations of laws or regulations, or of the Halliburton COBC. The committee
may request further information or call on individuals involved to provide additional
detail and may recommend follow-up actions.
COMPENSATION AND REMUNERATIONThe Compensation Committee of the Board oversees the Halliburton executive
compensation program. This program features market-driven compensation withina total-compensation framework, with flexibility to accommodate differences inbusiness drivers and objectives throughout our business units. Our executive
compensation includes a base salary, a balanced mix of long- and short-term
incentives, supplemental discretionary retirement and benefits. The program isregularly reviewed to ensure that it supports the Company’s strategies andgenerates value for our shareholders.

Halliburton 2018 Annual & Sustainability ReportCompensation programs are integrated with our business and human resources
strategies and management processes in order to focus efforts, maximize returns andbuild shareholder value. We partner with consultants to benchmark our pay programsand ensure we offer a competitive remuneration package and maintain governance toensure consistency and compliance.
Halliburton maintains open communication with the investment community, andseeking feedback from our shareholders on a regular basis is a critical part of ourapproach to managing our executive compensation program. During 2018, membersof our senior management team participated in over 100 investor meetings and
18 conferences. This cadence of stockholder engagement is in addition to the input
we receive through our annual advisory vote on executive compensation (say-on-pay)
and targeted outreach efforts. Additional detail on remuneration policies is available
in our 2019 proxy statement.
Benefit Plans
All active U.S.-based employees are eligible to participate in the Halliburton Retirement
and Savings Plan. The Company matches up to 5 percent of income contributed to an
employee’s account, for a contribution of $97 million in 2018. Employees can electto make pre-tax deferrals, Roth contributions or a combination of both. At the end of
every plan year, participants that are not contributing at least 6 percent are re-enrolled
at 6 percent to help them maximize their matching contributions. Additionally, theCompany will determine each year, at its discretion whether to make the Halliburton
Basic Contribution; this is an additional discretionary contribution to the retirement
accounts of all eligible employees. In 2018, an additional discretionary contribution of$32 million was made, for a total contribution of $129 million. Halliburton maintains
five legacy U.S. defined benefit pension plans that have been closed to new entrants
and benefit increases since the late 1990s. The assets for these defined benefit
programs are managed in a Master Trust.

Business Ethics
Global Ethics and Compliance
The Global Ethics and Compliance practice group in the Law Department is responsible
for advancing the Company’s commitment to its core value of Integrity throughthe administration of its Global Compliance Program. Global Ethics and Complianceis responsible for acting as an impartial and objective resource for all compliancerelated issues.
The Global Ethics and Compliance practice group is comprised of six subject matterareas that operate jointly and separately to support ethical business conduct bydirectors, officers, employees, contractors, suppliers, agents, consultants and others
acting on the Company’s behalf.

LOCAL ETHICS OFFICER (LEO) PROGRAM

LA
11

NA
12

58
EESSA
16

MENA/
APAC
19

LEOs serve as a local link for employees
to Global Ethics and Compliance, and are
the Company’s ethics role models andcompliance champions.
• A new class of LEOs began their three-year

term in Q4 2017.
• 58 Company leaders were drawn fromacross PSLs and Support Functions andsit in 42 different countries. They were
nominated by regional vice presidents andhemisphere presidents.

Global Ethics and Compliance is structured into global and regional teams. This
structure enables us to provide optimal support at every level of the organization.
A regional compliance counsel is available for guidance and advice for each region.
Global resources are available to advise on issues that affect the Company globallyand to conduct investigations regarding potential violations of the COBC or the law.

29

LatinAmerica

Middle East,
North Africa
and Asia
Pacific

Eurasia,
Europe &Sub-SaharanAfrica

3,458

8,849

1,874

2,267

3,617

11,435

5,501

3,569

Our COBC requires employees,
directors, officers and all third
parties that conduct business withus or on our behalf, to act with
fairness, integrity and high standardsof personal and business ethics.
Everyone is accountable for
upholding the COBC and for reporting
potential violations of the COBC
or the law. The COBC is accessibleon the internal and external
Halliburton websites.

North
America

Ethics Training by Region

Global Ethics and Compliance operates under the direction of the Senior Vice
President, Deputy General Counsel and Chief Ethics & Compliance Officer (CECO),
who independently reports directly to the Audit Committee of the Board and the
Executive Vice President, Secretary and General Counsel (GC). To maintain theobjectivity and impartiality of Global Ethics and Compliance, the CECO has express
authority to communicate directly with the Audit Committee of the Board regarding
the implementation and effectiveness of the Global Compliance Program, as well as
any matter which may materially impact the Company’s financial statements or may
involve activity that deviates from the Company’s core value of Integrity or its
commitment to ethical business conduct.
Our Global Compliance Program is based on: a robust compliance governanceframework; well-defined and clearly communicated standards of compliance;
continuous compliance monitoring through internal assessments and audits; effective
and timely response to detected violations of the COBC or the law, including
disciplinary actions and remedial actions when appropriate; ensuring open lines ofcommunication; ongoing training and education; and proactive risk management.
Compliance Management■ Ethics Tips
■ Ethics Moments

LEOs have conducted training in 50 countries in 2018.

Our Global Compliance Program is structured to detect any violation of the COBC or
the law. We provide employees and third parties clear avenues for reporting potential
violations of the COBC or the law. The Company’s Ethics Helpline enables Halliburton
employees and external whistleblowers to report misconduct anywhere in the world,
24 hours a day, seven days a week, by phone or email. Reports can be submitted
anonymously and translators are available. The Company will make every effort tomaintain the confidentiality of the reports.
Global Ethics and Compliance investigate potential violations of the COBC and shareresults internally with executive management, Internal Assurance Services (IAS) and,as appropriate, the Audit Committee of the Board.
The Chief Ethics & Compliance Officer reports to the Audit Committee of theBoard on investigations, COBC audits and other COBC-related topics each quarter,and provides the Audit Committee with a comprehensive annual report.

30

Halliburton 2018 Annual & Sustainability ReportHalliburton systematically pursues the goal of minimizing compliance risks, and it
analyzes and assesses the compliance risks of all its business units every year thoughinternal audits and compliance risk assessments. Compliance assessments are basedon centrally compiled information, interviews and consider specific geographical risks.
The results of the analyses form the basis of our programmatic initiatives each year.
Global Ethics and Compliance may communicate directly with any Company employee,
contractor, supplier, agent, consultant or others acting on the Company’s behalf
to conduct a compliance assessment or investigation. Global Ethics and Compliance
may work with external parties to enhance the quality and effectiveness of the
Global Compliance Program, to conduct investigations, or to review any matter at
the request of the General Counsel, the Board, the committees to which Global Ethics
and Compliance reports, any member of Executive Committee or any matter referred
to it through any reporting channel.
Our General Counsel or his designee chairs the Halliburton Enterprise Risk
Management (ERM) steering committee. The ERM Steering Committee includes
the Director of Risk Management, Senior Director of IAS, and the CECO. The CEO is
the Company’s Chief Risk Officer. The ERM steering committee has direct reporting
responsibility to the Board’s Audit Committee. Our Board’s Audit and HSE Committees
and HSE and SD Executive Committee consider these risks, at minimum, as partof their quarterly meetings.
Internal Assurance Services

669
In 2018, Global Ethics and Compliancereceived 669 reports.
359 reports weresent directly to Global
Ethics and Compliance359

310 reports werereceived through the
Ethics Helpline

310

33 percent of the669 reports wereanonymous

33

Global Ethics and Compliance partners with Internal Assurance Services (IAS), theRisk Management team and other Company departments to conduct risk assessmentsof our operations and identify areas where additional attention or modiﬁcation to ourprograms may be required.
The scope and frequency of IAS audits is determined based on our risk assessments
as well as local operating company requirements and local conditions. Generally, IAS
audits country operations on a three-year cycle for our higher-risk companies, or aﬁve-year cycle for our lower-risk companies, with more frequent testing and monitoringof select areas of our businesses conducted as necessary. The internal audit is an
integral part of our governance of HSE and SQ, and of ﬁnancial controls. Audit outcomes are ﬁnalized in a formal report, and actions are required to address reported
audit observations. Audit ﬁndings, trends and insights are reported within theorganization and to Board committees as applicable.
Our Company has improvement programs and projects that ensure we remaincurrent with changes in both the business environment and with the demands andexpectations of our diverse stakeholders. We also have comprehensive policies,
procedures and required training that help employees be aware of and comply withapplicable laws and regulations, including the U.S. Foreign Corrupt Practices Act(FCPA) and the U.K. Bribery Act.

175 reports dealt withpotential violations of
the COBC

175

163 of 175 cases
were closed

163

With regard to substantiated reports, appropriate measures
are decided in line with the principles of proportionality andfairness. Measures taken included termination, written
reprimand, coaching, restitution, suspension without pay,loss of stock/bonus and demotion.

31

GLOBAL ETHICS AND COMPLIANCE TRAINING

Human Rights
Halliburton operates in more than 80 countries around the world. Our stockholders,customers, suppliers and employees represent virtually every race, nationality,
religion, culture, political philosophy and language. This diversity supports ourbusiness excellence and embodies the Company’s respect for human rights anddignity of all people.
Halliburton and its Board support universal human rights as deﬁned by the United
Nations Universal Declaration of Human Rights. We are committed to compliancewith the requirements of all applicable employment, labor and human rights laws.
Our IAS and Human Resources processes validate our human rights practices. In
2018, we developed a Human Rights Policy Statement, which is available under
the Corporate Governance section of the Halliburton website.
Taxation
The Halliburton taxation strategy is consistent with our commitment to integrity andethics, and with our Guiding Principle on Global Citizenship. We are committed tomeeting our legal obligations in the payment of taxes and the disclosure of taxes paid
and effective rates. This information is set out in the notes to our financial statements.
Public Policy and Political Contributions

COBC Training
All Halliburton employees and certain categories ofcontract workers or consultants are required to complete
COBC training every two years. Two training courses areavailable online and cover all areas of the COBC, including
anti-corruption and human rights. The content of the courses
is tailored for manager versus non-manager employees.
Global Ethics and Compliance conducts in-person training
sessions to supplement the web-based COBC training
courses. These include interactive case scenario workshops.
A total of approximately 41,000 employees received
COBC training in 2018.
Anti-Corruption Training
All employees with relevant job functions and thoseworking in high-risk countries complete anti-bribery andanti-corruption training. The training covers the U.S. Foreign
Corrupt Practices Act, U.K. Bribery Act, other country-specificanti-corruption laws, hospitality, charitable contributions,
donations, gifts and international business relationships.
Global Ethics and Compliance conducts in-person training
sessions to supplement the web-based anti-corruption
training courses. These include interactive, case-scenario
workshops. A total of 8,019 employees received
Anti-Corruption training in 2018.

Halliburton may engage in public policy issues relevant to the Company’s interests.
The Company’s corporate political activities, including any contributions of Halliburton
funds or use of Company facilities and resources, must comply with applicable laws.
There are also times when Halliburton may provide administrative support for theoperation of political action committees or provide support in informing the public
on an issue of importance to the Company and its shareholders. In these cases,
contributions will always be in compliance with federal, state and local laws. Further
information on the Company’s contributions and public policy engagement can befound on the Halliburton website.

Stakeholder Engagement
At Halliburton, we have an ongoing dialogue with our shareholders, customers,
suppliers, communities, employees and partners about our business performanceand role in society, at all levels of our organization. This collaboration is integral to
our ability to deliver long-term financial, environmental and social value to our stakeholders. We regularly gather feedback on our activities and monitor issues importantto our stakeholders on a local and global level.

High-Risk Country Training
Employees working in countries that have been designatedas high risk are required to take training which, in addition
to touchpoints on COBC and anti-corruption, focuses oninternal controls that must be followed in the procurement
process. A total of 1,408 employees received High-Risk
Country training in 2018.

32

Halliburton 2018 Annual & Sustainability ReportTrade Associations and Speaking Engagements:
Halliburton engages with the industry and with technology leaders
to forge relationships that promote the advancement of science andtechnology. Senior management, our Investor Relations team andoperational managers hold regular meetings and conference callswith analysts, institutional investors and others. In 2018, Halliburton
executives made presentations, participated in panels or had otherkey roles at various industry events.
At Halliburton, we believe that clean natural gas is a sound alternative to othersources of energy, and hydraulic fracturing is the technology that will make thisabundant natural resource more available as an alternative source of energy.
We frequently engage the public, trade associations and government agencies(U.S. Environmental Protection Agency, U.S. state agencies, etc.) around theissue of hydraulic fracturing. Halliburton engagement also includes participationin technical roundtables, technical peer-reviewed publications, contributions to
informational websites and disclosures to customers, investors and the generalpublic through our website.

Halliburton works with government officials to provide in-depth information on
our operations, examine emerging technologies and contribute to the discussionof regulatory standards. For example, Company representatives have been involvedin the policy discussions surrounding the development of shale oil and gas resourcesin the U.S., Canada, Mexico, Europe and Australia.

The Halliburton Government Affairs function contributes to that objective byinterfacing directly with a broad array of government and non-government entities.
We seek to influence the development of laws, regulations and policies that foster
sound national and global economies. The office is focused on federal issues, key
states where we operate and international markets of consequence. We are also
educating policy makers on our technology, products and services that result in
lower emissions from our business activities and those services we provide at thecustomer’s well site.

33

34

Halliburton 2018 Annual & Sustainability Report

SUPPLY CHAIN
As the largest support function within Halliburton, Supply Chain manages a complex,
global network of suppliers, warehouses, cross docks and manufacturing facilities.
Comprised of procurement, manufacturing, materials and logistics, the global Supply
Chain function is responsible for over 20 manufacturing centers spanning the globe,
and has team members working in nearly every country where the Company operates.
Halliburton maintains the highest standards of corporate citizenship throughout our
global operations and requires the same from our suppliers. We strive to maximize
the positive economic and social impacts of our value chain, while minimizing environmental impacts. Halliburton engages local and diverse suppliers in the counties where
we operate, which not only exemplifies good corporate citizenship, but is also goodbusiness as it increases the strength and resiliency of our supply chain.

Supply Chain GovernanceHalliburton is committed to compliance with the requirements of all applicable
employment, labor and human rights laws to ensure fair and ethical employment
practices. This includes our non-discrimination, minimum age, freedom of associationand fair compensation policies as well as our policies on health, safety and security
for our employees. As part of the Company’s commitment, our requirements set
forth the expectation that our suppliers will uphold the fundamental rights of theiremployees as stated in the Universal Declaration of Human Rights expressed by
the United Nations.
During on-boarding, Halliburton requires 100 percent of potential suppliers toundergo a risk-evaluation process that covers export controls and sanctions screening,
insurance veriﬁcations and safety training for onsite vendors. Due diligence checks
are also performed on all international non-commercial agents, such as customs
brokers, freight forwarders and immigration and visa agents. Critical suppliers areevaluated annually on risks related to safety, quality, environment, social responsibility,
economics, governance and corporate citizenship. Non-compliance with Halliburton
standards, such as poor performance, unethical business practices and acts ofcorruption can lead to appropriate response actions up to and including termination.
Training on topics including HSE standards, human rights and conflict mineralcompliance is also provided to our suppliers to ensure they meet the Company’s
standards and gain information to improve the communities where we live and work.

>80 percent
Greater than 80 percent of theCompany’s Procurement spend waswith local suppliers.

1,552

Suppliers are required to supply Democratic Republic of Congo (DRC) conflict-freematerials to Halliburton, furnish information to assist in determining that work
provided to Halliburton is DRC conflict-free and respond to requests for information onsources of supply. These requirements support our commitment to the Responsible
Minerals Initiative and our compliance with Section 1502 of the United States
Dodd-Frank Act. In 2018, a total of 1,552 suppliers were identified as in-scope andcontacted as part of the Conflict Minerals campaign. Halliburton removed suppliers
from our approved supplier base who did not cooperate with our Dodd-Frank
compliance requirements.

As part of our Conﬂict Minerals
campaign, Halliburton reviewed
1,552 suppliers to conﬁrm compliancewith Dodd-Frank requirements.

100 percent
During on-boarding, Halliburton requires
100 percent of potential suppliers toundergo a risk-evaluation process.

35

Local Content and Supplier Diversity
In 2018, more than 80 percent of the Company’s procurement spend was with
suppliers located within the region where our operational activity took place. We
establish and foster relationships with suppliers who can provide Halliburton withstrategic and competitive advantages for our local operations, while expanding thecapacity and competency of national and local industry suppliers. Halliburton shapes
local sourcing efforts to the speciﬁc governmental, cultural and economic needsof each country. Additionally, Halliburton supports small, minority-owned andwomen-owned businesses throughout our U.S. supply chain.

36

Halliburton 2018 Annual & Sustainability ReportEcuador

MexicoSaudi Arabia

Halliburton reached 98 percent local
content suppliers for our drilling services in
Ecuador though ongoing negotiations withinternational and local vendors. The initiative
was part of a project drilling campaign withour customer to increase oil production,
improve cost structure and consolidate
long-term business relations with local
suppliers. Through this strategy, Halliburton
increased its competitive advantage in
Ecuador and obtained high HSE and SQ
performance from suppliers with zerosignificant events.

Halliburton Supply Chain conducted aworkshop where 70 percent of Mexico’s
local critical vendors participated to increasealignment with the Company’s HSE andSQ performance expectations for the year.
The workshop included participation from
Halliburton PSL management to provide
clear insights on performance expectations
required on customer well sites. As a result,
Halliburton realized an increase in overall
supplier performance.

Halliburton developed a local manufacturing
supplier for the Tuned® Defense™ cement
spacer to support Saudi Aramco’s in-Kingdom
Total Value Add (IKTVA) Program. This
supplier will supply the Tuned® Defense™
cement spacer to Saudi Arabia and an
additional 50 countries spanning theEastern Hemisphere and Latin America
Region operations.

China

India

Nigeria

Halliburton worked with suppliers in
China to develop local capabilities andcapacity by delivering quarterly trainings
to key suppliers. The training covered
technical drawings and specifications,metrology, review of mechanical properties,
premium thread connections, coating andplating operations. The success of the
program enabled Halliburton to direct nearly
50 percent more manufacturing activity to
our Chinese suppliers.

Halliburton Manufacturing and Technology,
in conjunction with our local pressure
pumping supplier, launched an exercise
to design and develop enhancementsfor our critical high-pressure pumping
equipment. This joint effort will not only
result in improved equipment performance,
but also it strengthened our relationshipwith this supplier.

To support our efforts to empower the
local community, Halliburton established atraining and development program on project
management, well intervention, drilling
fluid, well testing and pumping and cementing
services. In 2018, Halliburton successfully
graduated 19 candidates from this program,and as a result, Halliburton increased our local
capacity in Nigeria, which supports our local
content efforts.

37

38

Halliburton 2018 Annual & Sustainability Report

HALLIBURTONCOMMUNITY
Community Engagement
Community engagement incorporates many aspects of our interactions with our
external stakeholders. Two of our Guiding Principles for Sustainability are Global
Citizenship and Collaboration, and these provide the framework for our engagementwith the community through volunteer efforts, philanthropy and partnerships.
Halliburton centers our community work on our four Pillars of Giving: education,
environment, health and safety and social service.

1

Education
Each year, the Halliburton Foundation makes donations to U.S.-based elementary and secondary
schools, colleges and universities through the University Advisory Board (UAB). We look at avariety of programs that demonstrate excellence in preparing students with advanced skills forthe oil and gas industry, considering things such as opportunity for increased diversity within the
STEM discipline, global perspective and creativity. Halliburton best leverages Foundation grantawards through such programs that encourage youth to pursue STEM studies, boost retention
in technical disciplines and develop technical, business or leadership skills. At its discretion, theFoundation board of trustees also provides a limited number of grants to health and health-related
charities. Halliburton reviews grant requests on a quarterly basis.

2

Environment
In 2018, Trees for Houston (a non-profit organization) was a recipient of money raised fromthe Halliburton Charity Golf Tournament. Trees for Houston also provided volunteers with22 trees as part of its Trees for Schools program. Halliburton employees from the Applied Sciences
teams in Cementing and Production Enhancement completed a community project with a North
Houston elementary school, planting the crape myrtle and Monterrey oak trees around theschool’s grounds.

$1,976,368,090
Halliburton made almost $2 billion incontributions through our Charitable
Giving programs.

100 percent
All Halliburton employees have accessto career development programs andtraining through Learning Central.

Number 24
Recognized as a Top 50 Employer by
Woman Engineer (#24).

3

Health and Safety
To support International Children’s Day, Dhahran-based employees visited King Fahd Specialist
Hospital in Saudi Arabia to visit with children undergoing various cancer treatments and to show
support for affected families. Employees distributed gifts and created drawings and paintings withthe children. “This was a very special activity for us,” said Muzzammil Shakeel, a scientist in theTechnology group who organized the outreach. “Halliburton has always played an impactful rolein the community, and this initiative is part of our ongoing commitment to the communities where
we live and work.”

4

Social Service
Halliburton employees in Duncan, Oklahoma, held a second annual Red Games. The Red Gamesare a series of wellness challenges in which our employees compete against one another. On
behalf of the winning team, the Halliburton Charitable Foundation donated $10,000 to Gabriel’s
House Academy, an organization that partners with local schools to provide a safe, affordable, andnurturing after-school environment for at-risk children of primary school age.

39

GIVING ENTITIES* ▼HALLIBURTON COMPANY: SUPPORT TO NON-PROFITS GLOBALLY

Cash, in-kind (goods and services) and volunteer programs

HALLIBURTON CHARITABLE FOUNDATION (ALSO KNOWN AS HALLIBURTON CHARITY GOLF TOURNAMENT)

Grants from Halliburton Charity Golf Tournament to U.S.-based non-profits encompassing the four Pillars of Giving in areas where
Halliburton facilities are located

HALLIBURTON FOUNDATION
MATCHING GIFT PROGRAMUAB GRANTGIVING STRATEGY ▼PILLARS ▼DIRECT GRANTS

Education

Health and Safety

Environment

Social Services

STEM, literacy, business

Disease-related causes,
hospital foundations, police,
EMS, first responders,
community health and safety

Sustainability, clean-ups

Overall well-being of
the communities where welive and work,
veterans, hunger

OVERALL GIVING STRATEGY

Time, Treasure, Talent* All three granting entities (Halliburton, Halliburton Foundation, Halliburton Charitable Foundation) are independent entities with separate oversight, bylaws and leadership.

GIVING CHOICESEvery October, employees in the U.S., Canada, Mexico, the U.K., Australia, New
Zealand, India, Indonesia, Singapore, Malaysia, Pakistan, Kuwait, Iraq, Oman, Egypt,
UAE and Qatar proudly pledge money to their charities of choice through our annual
workplace giving program, Giving Choices. In addition to providing a 10 percent
matching gift, Halliburton also absorbs any administrative fees to support the
campaign. During our October 2018 Giving Choices campaign, employees pledged
more than $900,000 to non-proﬁts globally.
ENERGY TO HELP

Our employees have a strong desire to help others, and we are proud to support
their philanthropy and volunteer efforts globally. Halliburton employees around theworld have consistently demonstrated the “Energy to Help™” by volunteering toorganize fundraisers for disease research, to assist children and the elderly, toparticipate in environmental improvement projects and to support hundreds ofother community initiatives.
2018 Charitable Giving
HALLIBURTON CHARIT Y
GOLF TOURNAMENT

Charity Partners tied with Employee
Resource Groups (ERGs) benefitted
from Golf Tournament

The U.S.-based Halliburton Foundation supports education at all levels and charitableorganizations through employee matching gifts and direct grants. We welcome
suggestions from all employees on community and philanthropic efforts. Halliburton
Community Relations regularly reviews community initiatives to ensure alignment
with the Foundation’s focus areas and the Company’s broader strategy.

• Girls Inc.
• Montrose Counselling Center• Impact A Hero40

Halliburton 2018 Annual & Sustainability Report

CHARITABLE GIVING$2,609,606
Halliburton Corporate Giving$4,137,041
Halliburton Foundation>$900,781
Employee Giving (Giving Choices)$1,968,720,662
Landmark In-Kind Donations>$1,976,368,090

Halliburton Workforce
Diversity and Inclusion
Diversity in our workplace broadens thinking, stimulates innovation and generates
unique solutions to the world’s energy challenges. A more diverse workplace impacts
how we act, what we do and opens our minds to be more creative, collaborativeand competitive.
Halliburton creates a positive work environment by maintaining a strong culture ofdiversity and inclusion, supported by our COBC and formal employment practices.
This is reinforced through ongoing campaigns to highlight the value of diverse pointsof view, and is strengthened by Unconscious Bias Diversity Training for every level ofleadership. The results of our efforts are visible in our Employee Resource Groups
and in the diversity of our workforce.
EMPLOYEE RESOURCE GROUPS

Halliburton Employee Resource Groups are created/formed by employees to foster
engagement, networking and professional development. They are open to all
employees and enable the creation of personal and professional connections acrossour global workforce. In 2018, we enhanced collaboration among Employee Resource
Groups such as Women Sharing Excellence, Halliburton African American Network
Forum, Veterans Leadership Forum, iMPACT and PRIDE.
Women Sharing Excellence (WSE) is an internal professional network dedicated topromoting employee development, building leadership competencies and increasing
employee retention. The organization is open to all Halliburton professionals, and has
more than 900 members globally. WSE provides support in career planning andself-development through mentoring, training, community-service events, spotlightrecognition and a workplace conversation series.
Halliburton African American Network Forum (HAANF) supports the Company’s
diverse workforce through networking, mentoring and promoting professional growth,with the mission to educate, motivate and empower its members. Participants engage
in community service events and lead career development workshops. Although HAANF
members are primarily African-American employees, the organization is open to all
employees who seek to cultivate a diverse environment that provides opportunities
for advancement, success and growth.
Veterans Leadership Forum (VLF) provides tools and opportunities for professional
development to members to help maximize their contributions to the Company’s
success. Established by and for veterans in 2013, VLF membership is open to all
Halliburton employees who seek to enhance their careers.
iMPACT is an organization of Halliburton professionals with the primary objectiveof furthering employee development, enhancing leadership competencies andincreasing employee retention. The mission of this organization is to enableretention by engaging early- to mid-career Halliburton professionals in networking
and leadership programs that prepare them for growth within the company.
PRIDE is dedicated to creating a positive and inclusive work environment for peopleof all sexual orientations and gender identities. The organization achieves its goal
through education, awareness and results that add business value through industry
relations. PRIDE membership is open to all Halliburton employees.

Total Contributions

EDUCATION AND PARTNERSHIPHIGHLIGHTSLouisiana State University
Halliburton sponsors Louisiana State University(LSU) Halliburton Scholar’s Program. Last year,
all 16 recipients were female.
Texas Tech University
Science: It’s A Girl Thing (SIGT): Halliburton
assists with program costs that will enable
Texas Tech University’s Institute for theDevelopment and Enrichment of Advanced
Learners (IDEAL) to provide opportunities to
40 young women from Texas to participate in
SIGT at no cost.
Pennsylvania State University
Halliburton funds diversity retention initiatives
for Penn State’s Women in Engineering
Program (WEP), specifically the Women in
Engineering Program Orientation (WEPO)
and WEP Wednesdays.
We offer internships to university andtechnical school students from diverse
socio-economic backgrounds, aiming tohire the best after graduation.

2018 UAB PROGRAMS

6

9

1
14
12
2

■ At-risk Youth into Business, Geoscienceand STEM■ Diversity into Geoscience and STEM
■ Energy focus in Business■ Gender Diversity into STEM
■ Veterans’ Dependents into STEM
■ Youth Outreach into Geosciences, Industry
and STEM

41

Thailand – Cave Rescue

United States – Pro Bono Program

Brazil and Singapore – iMPACT Donations

In June 2018, a group of 12 boys were trapped
deep inside a cave in Thailand’s Chiang Rai
province, accompanied only by their soccer coach.
What began as an innocent cave exploration
after practice turned into nine days of the group
being marooned on a small rocky shelf nearlyfour kilometers from the cave entrance. Due toheavy rains, the cave system became flooded.
With support from the Company, two Halliburton
volunteers flew to Thailand to help set up pumping
equipment and install hard piping to help drainwater from the flooded cave. The Halliburton
volunteers became part of a larger team ofinternational representatives from countries allover the world with the same goal in mind – tobring the boys and their coach to safety as soon
as possible.

For about a decade, our law department in
Houston has had a pro bono program that supports
our local communities. This effort is accomplishedby partnering with local bar associations andlegal aid organizations to provide legal assistanceto underserved members of the community.
Halliburton attorneys assist with disaster relief
response, volunteer at legal advice clinics,
participate in will-a-thons, answer legal calls andrepresent the underserved in pro bono cases. In
recognition of its pro bono efforts, in 2018, theHalliburton Law Department received the Award
for Outstanding Corporate Law Department
Contribution by the Houston Volunteer Lawyers
Program (HVLP). The HVLP is a non-profit serviceof the Houston Bar Association, which provides
free civil legal aid to low-income individuals andpromotes volunteerism among lawyers.

Through iMPACT, Halliburton employees in
Brazil made donations and volunteered during
special occasions such as Easter and Christmas,
at Jacyra School located in an underprivileged
area of Macae. They also partnered with a
non-profit organization, Casa do Araço, to promoteand gather donations for children in need. In
Singapore, the iMPACT team held a Hair for Hopeevent, a fundraiser in which Halliburton employees
shave their heads to raise funds for the Children’s
Cancer Foundation. The 2018 event saw a record
number of participants from the events inception
in 2016, raising over $22,000 in 2018.

Colombia – Charitable Projects

Mexico – Rebuilding Schools

India – Sustainability Contribution

In 2018, Halliburton employees participated invarious charitable projects in the rural areas of
our operations in Neiva, Huila. Additionally, theCompany donated recycling receptacles andmaterials for the maintenance of damaged schoolparks, benefiting about 1,200 people.

Halliburton employees have donated food,clothing and time to help to rebuild schools thatwere severely damaged by an 8.2 earthquake atthe end of 2017. This was done in collaboration
with United Way Mexico. The reconstruction of
three schools has progressed positively and thefirst school is planned to open in January 2019.

Our Pune Technology Center contributed$31,000 to the Deenanath Mangeshkar Hospitalin Maharashtra, Pune, India, to help treat and/or
perform free surgeries for underprivilegedchildren suffering from cancer, orthopedic
deformities or epilepsy. The 2018 contributions
help treat 26 patients, out of which 20 were
below the age of 6 and 21 were from families
below the poverty line. The Halliburton contribution
covers 60 percent of the total amount and theremaining 40 percent comes from the Hospital.

42

Halliburton 2018 Annual & Sustainability ReportIn 2018, we continued targeted partnerships and mindshare with gender speciﬁc
and minority organizations and universities. As part of these efforts, we haveincreased focus and accountability, resulting in the hiring of 23 percent female
professionals. In addition, we increased female candidacies for key operationalrole readiness by 48 percent.
EMPLOYEE TRAINING AND DEVELOPMENT

Learning in Halliburton follows a federated model, where a global team establishes
standards, processes and systems related to learning and development, and thebusiness units have the ﬂexibility to pursue employee development plans within
this broad framework. This model gives each business unit the agility to develop
curriculum and make learning decisions suited to their circumstances, while also
maintaining consistency in processes.
Employees have access to a variety of learning and career resources via the
Employee Development Hub, including Learning Central and Competency Central.
Learning Central manages and tracks over 2,700 courses used by approximately
60,000 employees. HalVL, a virtual training platform, with social collaboration tools,
is also extensively used by the business. In 2018, we also saw the introduction ofHalliburton TV, a corporate platform for producing, hosting and delivering video content
on a variety of topics. These three primary systems are supported by others thatfacilitate both formal and informal learning opportunities for employees and ensurethat employees receive relevant training and development that is aligned to ourbusiness needs and service quality framework. Learning Central documents careerdevelopment activities and Competency Central connects required competencies
to job roles.
In addition to Learning Central’s online courses, our network of training centersoffers employees technical, operational, professional and leadership training inclassroom and hands-on workshop settings. Employees can also independently
register for training and other development activities. By identifying and addressing
gaps in knowledge or skills, they can determine the development necessary toadvance to the next career level. Managers assign and assess their employees’
competencies for current roles and next roles of interest.
In 2018, the International Association of Drilling Contractors once again granted
our Global Competency Assurance Program full accreditation, with full competency
accreditation for positions across all PSLs and support functions globally. We remain
the only full-spectrum oilﬁeld services company to have global accreditation withno restrictions. Overall training hours increased by 49 percent in 2018 to 4.53 million
hours. Increased recruitment in the North America market led to a global averageof 68 training hours per learner, up 33 percent from 2017.

DIVERSITY AND INCLUSION EVENTS & AWARDS

Events• Sponsored and participated with multiple Halliburton

speakers in the Society of Women Engineers (SWE) National
Conference, Minneapolis, Minnesota, October 2018.
• Attended Women’s Global Leadership Conference inEnergy – 80 Halliburton attendees, including panelist andkeynote speaker.
• Sponsored Society of Women Engineers WE Local
conference, Pune, India.
• Created a Social Media Campaign – Women of Halliburton.
• Sponsored 34 female-focused events on campuses acrossthe U.S.
• Sponsored the Joint Women’s Leadership Symposium(JWLS).
Awards• 2018 Houston Business Journal Women to Watch –Misty Rowe, Cementing Technology Portfolio Manager.
• 2018 Pink Petro GRIT Award Winner – Monica Baistrocchi,

HSE and SQ Manager, Continental Europe.
• 2018 Breakthrough Woman by Greater Houston Women’s

Chamber of Commerce – Lisa Modica, Vice President
Global Labor and Employment.
• 2018 Greater Houston Women’s Chamber of Commerce– Board Chair – Myrtle Jones, Senior Vice President, Tax.
Recognitions• Ranked #1 in Rigzone Ideal Employer Oilﬁeld Service

Companies Survey.
• Recognized as a Top 25 Company for Diversity by

National Diversity Council.
• Recognized as a Top 50 Employer by Woman Engineer (#24).
• Recognized as a Top 50 Employer by Minority Engineer (#27).
• Recognized as Experienced Energy Partner by

Pink Petro for Diversity and Inclusion hiring.

GOVERNANCE MODEL FOR LEARNING AND DEVELOPMENT

Sponsor
Steering
Committee

Learning Council

Learning Professionals

43

The Company’s learning organization has 134 full-timelearning professionals – one per 446 employees. They
manage, develop, conduct and administer learning activities. This community has representation in the Learning
Council, via the Technical Development Managers, whoparticipate in governance-related decision-making. In
addition, the company has a large number of specialized
professionals and product champions who support thelearning organization in the capacity of guest instructors
and subject matter experts.

2018 AVERAGE EMPLOYEE AGE

EMPLOYEES: PERCENTAGE OF 2018
FEMALE NEW HIRES BY REGION

Western Hemisphere
Eastern Hemisphere
Other

37.5
38.2
43.8
14%
19%

2018 EMPLOYEE HIRING

12,564
0.21

21%

35%

We pay over 200 percent of the federal minimum wage in the
United States for all entry-level non-exempt employees.

■ Europe/Africa/CIS■ Middle East/
Asia Pacific
33

4.53

3.04*

■ North America■ Latin America

2.02

100 percent of ouremployees receive regularperformance and careerdevelopment conversations.

51** Hires from Completion and Production and Drilling and
Evaluation only.

68

Total New Hires*
New Hires RateEMPLOYEES: PERCENTAGE OF
LOCAL NATIONALS IN WORKFORCE

16

17

18

Employee
Training
million hours

16

17

16

18

Training Hours
per Learnerhours* Updated 2017 information using a consistent calculation method.

North America
Latin America
Europe/Africa/CIS
Middle East/Asia Paciﬁc

17

18

99% 99% 100%93% 98% 94%
88% 93% 93%
72% 75% 70%

BUSINESS LEADERSHIP DEVELOPMENT COURSES

Number of Attendees

44

Year

Business
Leadership Level I
Attendees

Business
Leadership Level II
Attendees

Business
Leadership Level III
Attendees

Financial
Leadership for
Non-Financial Leaders

President’s
Leadership Excellence
Program

2016
2017
2018

509
457
292

148
135
219

48
57
75

130
120
40

20
23
30

Halliburton 2018 Annual & Sustainability ReportTALENT MANAGEMENT

Constant and active communication between employees and managers is thecore of our annual succession management process. This helps to identify, develop
and retain a reliable succession of skilled leaders.
A key factor in fostering employee engagement is supporting employees inenhancing professional growth and building their careers with succession planning,leadership development plans and specialized leadership programs to open doors forhigh-potential employees. Succession management is a proven method for assessing
the skills, talent and potential of employees. It targets top talent for accelerated
development within the Company through tailored development plans.
Succession Management Process Steps
1) Employees complete/update an online Talent Proﬁle Summary.
2) Managers complete Leadership Assessments of their direct reports.
3) Managers populate a Succession Management Replacement Chart priorto Talent Review.
4) Relevant team members hold a Talent Review to discuss their reports’competencies, strengths, development areas, potential and blocking roles.
5) Managers conduct Development Discussions with reports and create
Leadership Development Plans for the coming year.
6) Employees execute their Leadership Development Plans while managers
provide ongoing support, coaching and feedback.
Ongoing identiﬁcation, assessment and development of our leadership talent
strengthens our competitive advantage and is critical to our short-term and long-term
success. Career development frameworks that prepare qualiﬁed employees
for leadership roles include the Supply Chain Management Program, Technology
Professional Development Program, Human Resources Leadership Program, Hireto HSE Manager and the Hire to Country Manager process. Halliburton also offers
customized assessment and development opportunities for employees currently inleadership positions. These include stretch assignments, leadership development
plans with coaching and training programs developed and facilitated internallyand externally.

Performance

Development
Application
Opportunities

CareerConversations

Identify, develop, retain talent for long-termsustainability of leadership bench strength

Development
Plans

Aspirations

Assessments

45

HIRE TO COUNTRY MANAGER PROCESS

Hire to Country Manager is our leading development process for operational personnel.
PHASE 1PHASE 2

PHASE 3

PHASE 4

PHASE 5

Role
Technical
Professional

Role
Technical
Professional

Role
Account
Representative

Role
Service
CoordinatorRole
PSL Service
Manager

Competency
Technical Depth

Competency
Service Execution

Competency
Customer Focus

Competency
Frontline
Leadership

Competency
Business Acumen

PSL Country
Manager

Security
The safety of our employees, contractors and facilities is paramount, and coincides
with our respect for human rights and the security of local communities. Our highstandards of safety require the use of third-party armed security in a small minorityof the countries where we operate. Halliburton makes signiﬁcant efforts to ensurethat these security providers uphold our strong standards of ethics and integrity.
All third-party security providers are required to ensure that security personnel complete
all necessary training, and to have procedures in place to ensure compliance with
our COBC.
Employee Well-Being
We aim to continuously improve our workplace culture by listening to our employees
through frequent engagement on work status and performance, as well as throughsemi-annual Employee Pulse Surveys. Understanding our employees’ perspectives by
aggregating their direct feedback is one way we drive management accountability tolisten, learn and communicate with employees for continuous improvement.
100%

In an effort to improve the frequency and quality of performance conversations,
Halliburton migrated to a continuous performance and engagement approach known
as “Check-in” in late 2016. This approach applies to 100 percent of our workforce
and ensures more frequent conversations between employees and managers toconnect on priorities, communicate feedback and collaborate to develop stronger
performance. We drive accountability through our semi-annual Employee Pulse Surveythat measures several engagement and leader effectiveness items that directly linkto the Check-in process. Our results have improved over time, indicating a higher
level of leader effectiveness. By understanding their organizational data, leaders
target particular areas to improve.

75%

50%

25%

Q1
2017

Q3
2017

Q1
2018

Percent of Employees in Agreement with
Halliburton Focus Areas■ How Individual Goals Connect to Halliburton Objectives■ Clarity of Individual Objectives■ Frequency of Feedback■ Frequency of Development Conversations

46

Q3
2018

Instead of an annual, one-dimensional rating, Halliburton uses a semi-annual
Talent Identiﬁcation Survey which serves as a multi-dimensional snapshot of
performance and potential. The Talent Identiﬁcation Survey provides managers with
better insights for making effective talent and pay decisions. It measures factors
including performance, collaboration and potential. The Talent Identiﬁcation Survey
also provides managers with more speciﬁc information that they can communicate
with employees during their Check-in conversations.
Halliburton uses the data collected from the Employee Pulse Survey and the Talent
Identiﬁcation Survey for predictive analytics. We discovered a strong correlation ofsurvey data related to feedback and development with attrition. By identifying where
elevated risk exists, HR is able to proactively coach leaders to take speciﬁc steps
to improve engagement within these groups in an effort to retain key talent.

Halliburton 2018 Annual & Sustainability ReportIn 2018, we built upon our beneﬁts and Family Care program offerings for our
U.S. employees.
Family Care Program Updates
Dependent Sick Days – Employees may take up to ﬁve paid days a year to care
for a sick child, parent or other immediate family member.
• Parental Bonding Leave – Both mothers and fathers may take up to eight weeks
of paid leave within the ﬁrst year to bond with a newborn or newly adopted child.
This is separate from, and in addition to, our existing medical leave beneﬁts
associated with a birth.
• Total number of employees entitled to parental leave• Male = 20,365 (approximately 2 percent took paid bonding leave in 2018)• Female = 2,810 (approximately 2.6 percent took paid bonding leave in 2018)• Increased Adoption Allowance – Employees who adopt a child are eligible toreceive additional ﬁnancial support.
• Fertility Treatment Beneﬁt – Employees with fertility issues are eligible to receive
additional support in their journey to parenthood.
• Family Care Program Point of Contact – Employees will have access to a resourceon our beneﬁts team who will help guide them through their family care needs.
•

All regular employees scheduled to work a minimum of 20 hours per week are eligible
for all health, welfare and retirement beneﬁts, including retirement consultation andplanning, offered by Halliburton. Transition assistance programs are offered throughan external provider.
LiveWell: Our health and wellness lifestyle management program provides employees
and their spouses access to information and tools to help achieve personal healthand wellness goals, including tobacco cessation, weight-loss programs and ﬁnancial
planning and educational workshops.
Halliburton has a global program to ensure the health and well-being of ouremployees and their families. Our Wellness Committee, under executive sponsorship,
has a mission to increase awareness and create opportunities for employees andtheir families to take ownership of their health. The initiative focuses on ﬁve key
elements: (1) Nutrition, (2) Physical health, (3) Emotional health, (4) Financial wellnessand (5) Community involvement.
Halliburton offers programs that help employees constructively cope with well-being
issues that arise within and outside the workplace, including:
The Halliburton Dispute Resolution Program provides independent ombudsman
and mediator support for employees to resolve workplace issues.
• The Employee Assistance Program offers conﬁdential help and support for a rangeof personal and professional difﬁculties.
•

47

ENVIRONMENTAL& SOCIAL DATA

2018

2017

2016

8,965,087
565,546
4,706,282
797,971
1,910,708
16,945,595

23,249,327
1,088,192
761,656
6,805
1,784,500
26,890,480

22,639,373
970,467
584,445
4,492
1,487,228
25,686,005

1,037,876
271,233
73,388
1,382,496

1,837,736
260,784
84,142
2,182,662

1,770,698
205,273
84,1422,060,113

ENVIRONMENTAL
Energy Consumption (GJ)1
Fuel Consumption2
DieselCoal
Natural Gas
Other (Gasoline and Propane)
Electricity Consumption
Total

Transparency International’s Corruption
Perception Index
Amount of net revenue in countries that havethe 20 lowest rankings, in millions of dollars$ 154.3$ 58.7$ 0.6$ 15.8$ 485.9$ 3.0$ 84.9$ 0.2

AngolaCongo
Equatorial Guinea
Turkmenistan
Iraq
Libya
Venezuela
Yemen

Greenhouse Gas Emissions (TCO2e)3
Direct (Scope 1)
Indirect (Scope 2)
Indirect (Scope 3)4
Total
Greenhouse Gas Emissions Intensity (TCO2e/$M Revenue)
Scope 1, 2 and 3

58

106

130

Waste Disposal (Metric Tonnes)
Non-hazardous
Hazardous
Total

158,696
50,751
209,447

89,89670,417160,313

269,880
103,990373,870

Incineration
Total Landﬁll
Total Recycled
Total Reuse
Composting
Total Energy Recovery
Onsite Storage
Deep Well Injection
Total5

5,095
88,20572,821
7,388
7,366
8,236
11,811
8,526
209,447

3,959
57,31536,091
6,106
3,532
50,291
2,386
633
160,313

180,42173,85160,47341,321
7,337
4,381
3,471
2,615
373,870

Water Consumption (m3)
Total

2,646,230

1,924,248

1,174,058

0.05
1,034

0.04
142

0.04
208

181,330,469

163,054,003

156,215,306

0
1
1

1
0
1

6
1
7

0
0.001
0.001

0.001
0
0.001

0.008
0.001
0.009

365
199

301
210

286
195

0.13

0.12

0.10

Spills and Discharges
Recordable Environmental Incident Rate
(Incidents per 200,000 hours worked)
Total Volume of Spills (m3)

SOCIAL DATA
Total Number of Hours Worked
Number of Fatalities
Employee
Contractor
Total
1

GHG Protocol Corporate Accounting and Reporting Standards
were used in the calculation of energy use and greenhousegas emissions. Energy sources include fuel, electricity,
heating, cooling and steam.
Electricity emission factors are obtained from the International
Energy Agency’s CO2 Emissions from Fuel Combustion Report
and the United States Environmental Protection Agency’s
eGRID publication.

2

3

A signiﬁcant portion of the reduction in 2018 fuel consumption
could be attributed to customer-supplied fuel.
Gases covered in GHG emissions calculations include CO2,
CH4, and N2O. Global Warming Potentials are obtained fromthe Intergovernmental Panel on Climate Change Fifth
Assessment Report. The chosen consolidation approach foremissions is operational control.

4

All rental vehicle emissions are calculated using the U.S.
factors for “Passenger Car – Gasoline – Year 2005–present”
due to lack of readily available data on vehicle miles by year ofvehicle and location. Emissions from air ﬂeet fuel usage has
been calculated using U.S. Jet Fuel emissions factor.

5

Sum of categories may differ from total due to rounding.

6

The sum of Charitable Giving categories may differ from total
due to rounding.

48

Fatality Rate (Incidents per 200,000 hours worked)
Employee
Contractor
Total
Injuries and Process Safety Incidents
Total Recordable Injuries
High-Potential Incidents
Lost-Time Incident Rate
(Incidents per 200,000 hours worked)
Total Recordable Incident Rate
(Incidents per 200,000 hours worked)
Recordable Vehicle Incident Rate
(Incidents per million miles traveled)
Charitable Giving ($’000)
In-kind Donations
Halliburton Foundation
Employee Giving
Corporate Giving
Total6

$
$
$
$
$

0.40

0.37

0.37

0.48

0.34

0.30

1,968,721
4,137
901
2,610
1,976,368

$
$
$
$
$

2,107,489
5,826
1,312
1,104
2,115,731

$
$
$
$
$

2,739,334
5,416
1,294
671
2,746,715

Procurement ($M)
Spend with Small and Diverse Suppliers

790

937

615

Business Ethics
Code of Business Conduct Reports

175

180

139

Halliburton 2018 Annual & Sustainability ReportUNITED NATIONSSUSTAINABLE DEVELOPMENTGOALS MAPPINGThe United Nations Sustainable Development Goals (SDGs) were adopted by the
global community in 2015. In 2018, Halliburton undertook an exercise to map ourmaterial sustainability topics and relevant metrics to the SDGs, in order to assess
our alignment with the priorities of policymakers and other stakeholders. The resultsof this exercise are shown in the table below.

HALLIBURTON MATERIAL TOPICSUNITED NATIONS SUSTAINABLE
DEVELOPMENT GOALSHALLIBURTON KEY PERFORMANCE INDICATORSECONOMIC

Corporate Governance and Business Ethics

16. Peace, justice and strong institutions• Hours of training on anti-corruption and

Code of Business Conduct
Economic Performance

1. No poverty
4. Quality education
8. Decent work and economic growth• Percentage of spend with local suppliers• Spend with small and diverse suppliers• Training hours per learner• Spend on educational support programs

Supply Chain Sustainability

4. Quality education
8. Decent work and economic growth
12. Responsible consumption and production• Percentage of spend with local suppliers• Spend with small and diverse suppliers

SOCIAL

Health, Safety, Wellness

3. Good health and well-being• Total Recordable Incident Rate
• Lost-Time Incident Rate

Diversity and Inclusion

Community Engagement

5. Gender equality
8. Decent work and economic growth
10. Reduced inequalities• Percentage of localization of workforce

1. No poverty
2. Zero hunger
3. Good health and well-being
4. Quality education
16. Peace, justice and strong institutions• Charitable giving

7. Affordable clean energy
13. Climate action• Energy consumption

6. Clean water and sanitation
14. Life below water
15. Life on land

• Water use• Spend with small and diverse suppliers• Global Ethics Helpline• Percentage of localization of workforce

ENVIRONMENT

Energy and Greenhouse Gases

Environmental Stewardship• Greenhouse gas emissions intensity• Recordable Environmental Incident Rate
• Spill volume• Waste generation and recycling rate

49

GRI CONTENT INDEXGENERAL DISCLOSURESINDEXDISCLOSURE TITLE

102–1
102–2
102–3
102–4
102–5
102–6
102–7
102–8
102–9
102–10
102–11
102–12
102–13Name of the organization
Activities, brands, products and services
Location of headquarters
Location of operations
Organization and legal form
Markets served
Scale of the organization
Information on employees and other workers
Supply chain
Signiﬁcant changes to the organization and its supply chain
Precautionary Principle or approach
External initiatives
Membership of associations

ECONOMIC
PAGE NUMBERINDEXDISCLOSURE TITLE

Form 10-K
P. 4–5, 8–9, Form 10-K
Inside back cover, Form 10-K
P. 9, Form 10-K
Inside back cover, Form 10-K
P. 4–5, 8–9, Form 10-K
P. 8–9, Form 10-K
P. 8–9P. 35–37
P. 35–37, Inside back coverP. 13, 18, 20, 27, 29
P. 13, 27–33, 54
P. 33, 54

201–1
201–3

Direct economic value generated and distributed
Deﬁned beneﬁt plan obligations and other retirement plans

Economic Performance

Organizational ProﬁleStatement from senior decision-maker
Description of key impacts, risks and opportunities

P. 1, Form 10-K
P. 28–29, Proxy

Market Presence
202–1

Ratios of standard entry-level wage by gender compared to
local minimum wage

We pay over 200 percent of thefederal minimum wage
in the United States for all
entry-level non-exempt
employees.

Procurement Practices
204–1

Proportion of spending on local suppliers

P. 35–37

Anti-Corruption

Strategy
102–14
102–15

PAGE NUMBER

P. 2–3Form 10-K

205–1
205–2
205–3

P. 8
P. 27–32

206–1

Ethics and Integrity

Operations assessed for risks related to corruption
Communication and training about anti-corruption policies and procedures
Conﬁrmed incidents of corruption and actions taken

P. 29–32
P. 29–32
P. 29–32

Anti-Competitive Behavior
102–16102–17

Values, principles, standards and norms of behavior
Mechanisms for advice and concerns about ethics

Legal actions for anti-competitive behavior, anti-trust and monopoly practices

P. 29–32

Governance102–18
102–19102–20
102–21
102–22
102–23
102–24
102–25102–26102–27
102–28102–29102–30102–31
102–32
102–33
102–35
102–36102–37
102–38Governance structure
P. 27–31
Delegating authority
P. 27–31
Executive-level responsibility for economic, environmental and social topics
P. 27–31
Consulting stakeholders on economic, environmental and social topics
P. 27–28
Composition of the highest governance body and its committees
P. 27–28
Chair of the highest governance body
P. 27–28
Nominating and selecting the highest governance body
P. 27–28
Conﬂicts of interest
P. 27–31
Role of the highest governance body in setting purpose, values and strategy
P. 27–31
Collective knowledge of highest governance body
P. 27–28
Evaluating the highest governance body’s performance
P. 27–28
Identifying and managing economic, environmental and social impacts
P. 10–11, 27–28
Effectiveness of risk management processes
P. 14, 30–31
Review of economic, environmental and social topics
P. 27–28
Highest governance body’s role in sustainability reporting
P. 27
Communicating critical concerns
P. 27–28
Remuneration policies
P. 28–29, Proxy
Process for determining remuneration
P. 28–29, Proxy
Stakeholders’ involvement in remuneration
Proxy
Annual total compensation ratio
Proxy

Stakeholder Engagement
102–40
102–41
102–42
102–43
102–44

List of stakeholder groups
Collective bargaining agreements
Identifying and selecting stakeholders
Approach to stakeholder engagement
Key topics and concerns raised

P. 54
P. 41–45
P. 32–33, 54
P. 10–11, 32–33, 54
P. 10–11, 32–33, 54

Reporting Practice
102–45
102–46102–47
102–48
102–49102–50102–51
102–52
102–53
102–54
102–55
102–56

Entities included in the consolidated ﬁnancial statements
Deﬁning report content and topic boundaries
List of material topics
Restatements of information
Changes in reporting
Reporting period
Date of most recent report
Reporting cycle
Contact point for questions regarding the report
Claims of reporting in accordance with the GRI Standards
GRI content index
External assurance

P. 1, Form 10-K
P. 10–11
P. 10
Inside back coverP. 10–11
Inside back cover
Inside back cover
Inside back cover
Inside back cover
Inside back cover
P. 50
Inside back coverManagement Approach
103–1
103–2
103–3

50

Explanation of the material topic and its boundary
The management approach and its components
Evaluation of the management approachP. 10–11, Form 10-K
P. 10–11, 13–19
P. 10–11, 13–19

Halliburton 2018 Annual & Sustainability ReportENVIRONMENTALINDEXDISCLOSURE TITLE

SOCIAL
PAGE NUMBER

INDEX

P. 22–25, 48
P. 22–25, 48
P. 22–25
P. 22–25

401–2

Energy
302–1
302–3
302–4
302–5

Energy consumption within the organization
Energy intensity
Reduction of energy consumption
Reductions in energy requirements of products and services

Water withdrawal

P. 24, 48

401–3

Direct (Scope 1) GHG emissions
Energy indirect (Scope 2) GHG emissions
Other indirect (Scope 3) GHG emissions
GHG emissions intensity
Reduction of GHG emissions

Waste by type and disposal method
Signiﬁcant spills

Non-compliance with environmental laws and regulations

404–1
404–2
404–3

405–1

New suppliers that were screened using environmental criteria
Negative environmental impacts in the supply chain and actions taken

P. 13–15, 18–21
P. 13–15, 18–21

410–1
No signiﬁcant ﬁnes andnon-monetary sanctions for
non-compliance incurredin 2018.

Average hours of training per year per employee
Programs for upgrading employee skills and transition assistance programs
Percentage of employees receiving regular performance andcareer development reviews

P. 43–46
P. 14, 43–45
P. 45–47

Diversity of governance bodies and employees

P. 28, 41

Security Practices
Security personnel trained in human rights policies or procedures

P. 47

Human Rights
412–1
412–2
412–3

Operations subject to human rights assessments
Employee training on human rights procedures
Signiﬁcant agreements or contracts with human rights clauses/screening

413–1

Operations with local community engagement, impact assessments
and development programs

Supplier Environmental Assessment
308–1
308–2

Occupational health and safety management system
Work-related injuries

Diversity and Equal Opportunity

P. 24, 48
P. 25

Environmental Compliance
307–1

P. 46–47
P. 46–47

Training and Education
P. 23, 48
P. 23, 48
P. 48
P. 23, 48
P. 23, 48

Efﬂuents and Waste
306–2
306–3

Beneﬁts provided to full-time employees that are not provided totemporary or part-time employees
Parental leave

Occupational Health and Safety
403–1
403–9

Emissions
305–1
305–2
305–3
305–4
305–5

PAGE NUMBER

Employment

Water and Efﬂuents
303–3

DISCLOSURE TITLE

P. 32
P. 32
P. 29, 32

Local Communities
P. 35–37
P. 35–37

P. 39–43

Supplier Social Assessment
414–1

New suppliers that were screened using social criteria

P. 35

Socioeconomic Compliance419–1

Non-compliance with laws and regulations in the social and economic area

P. 29–31, 35

51

SUSTAINABILITYACCOUNTINGSTANDARDS BOARD
SASB TOPIC

Emissions Reduction Services &Fuels Management

CODE

Total fuel consumed, percentage renewable, percentage used in:(1) on-road equipment and vehicles and (2) off-road equipment

EM-SV-110a.1

Discussion of strategy or plans to address air emissions-related risks,
opportunities, and impacts

EM-SV-110a.2

Percentage of engines in service that meet Tier 4 compliance for
non-road diesel engine emissions

EM-SV-110a.3(1) Total volume of fresh water handled in operations, (2) percentage
recycled

EM-SV-140a.1

Discussion of strategy or plans to address water consumption anddisposal-related risks, opportunities and impacts

EM-SV-140a.2

Volume of hydraulic fracturing fluid used, percentage hazardous

EM-SV-150a.1

Discussion of strategy or plans to address chemical-related risks,
opportunities and impacts

EM-SV-150a.2

Average disturbed acreage per (1) oil and (2) gas well site

EM-SV-160a.1

Discussion of strategy or plan to address risks and opportunities related
to ecological impacts from core activities

EM-SV-160a.2(1) Total recordable incident rate (TRIR), (2) fatality rate, (3) near-miss frequency rate (NMFR), (4) total vehicle incident rate (TVIR) and (5) average
hours of health, safety and emergency response training for: (a) full-time
employees, (b) contract employees and (c) short-service employees

EM-SV-320a.1

Description of management systems used to integrate a culture ofsafety throughout the value chain and project lifecycle

EM-SV-320a.2

Amount of net revenue in countries that have the 20 lowest rankings inTransparency International’s Corruption Perception Index

EM-SV-510a.1

Description of the management system for prevention of corruption andbribery throughout the value chain

EM-SV-510a.2

Management of the Legal &Regulatory Environment

Discussion of corporate positions related to government regulations
and/or policy proposals that address environmental and social factors
affecting the industry

EM-SV-530a.1

Critical Incident Risk Management

Description of management systems used to identify and mitigate
catastrophic and tail-end risks

EM-SV-540a.1

Activity Metrics

Total number of hours worked by all employees3

EM-SV-000.D

Water Management Services

Chemicals Management1

Ecological Impact Management2

Workforce Health & Safety

Business Ethics & Payments Transparency

1
2
3

52

ACCOUNTING METRIC

Chemicals management was deemed not applicable, as usage of hydraulic fracturing fluid used to open and enlarge fractures within the rock formation is outside of the Company’s operational control.
Ecological Impact Management was deemed not applicable, as management of disturbed acreage per oil and gas well site is outside of the Company’s operational control.
Number of active rig sites, number of active well sites and total amount drilling performed are not relevant to the Company’s operational control, and have therefore been omitted.

Halliburton 2018 Annual & Sustainability Report

STATUSSECTION REFERENCE

PartialHalliburton Management System: Environmental Stewardship

PartialHalliburton Management System: Environmental StewardshipHalliburton 2018 Form 10-K

PartialHalliburton Management System: Environmental Stewardship

PartialHalliburton Management System: Environmental Stewardship

PartialHalliburton Management System: Environmental StewardshipHalliburton 2018 Form 10-K

Not applicableSee footnote

PartialHalliburton Management System: Technology and Process Improvement
Halliburton Management System: Environmental StewardshipHalliburton 2018 Form-10K

Not applicableSee footnote

PartialHalliburton Management System: Technology and Process Improvement
Halliburton Management System: Environmental Stewardship

PartialHalliburton Management System: Health and Safety
Halliburton Community: Halliburton Workforce

Complete

Halliburton Management System: Journey to ZERO
Halliburton Management System

Complete

Environmental & Social Data

Complete

Corporate Governance, Business Ethics and Stakeholder Engagement:
Compliance Management
Corporate Governance, Business Ethics and Stakeholder Engagement:
Anti Corruption

Complete

Corporate Governance, Business Ethics and Stakeholder Engagement:
Corporate GovernanceCorporate Governance, Business Ethics and Stakeholder Engagement:
Business Ethics
Corporate Governance, Business Ethics and Stakeholder Engagement:
Human Rights

Complete

Halliburton Management System: Journey to ZERO
Halliburton Management System

Complete

Environmental & Social Data

53

STAKEHOLDERENGAGEMENT

SUPPLIERSCUSTOMERS• Regular meetings• Account management interactions• Industry and trade groups• Collaboration/innovation partnership• Operational efficiencies• Trade shows• Supplier Code of Conduct/Governance• Industry group events• Expansion and establishment of new• Workshops

supply chain infrastructures• Supplier training and workshops• Marketing communications• Publications in mainstream media andtrade publications

EMPLOYEESINVESTORSGOVERNMENT/REGULATORS• Company-wide presentations• Quarterly earnings meetings and materials• Intranet articles and publications• News releases and U.S. SEC filings• Regular employee communications from• Annual Report• Industry and trade associations

executives, managers, etc.

• Activities reported to selectfederal agencies• Annual shareholders meeting• Policy discussions• Succession planning and development• Investor conferences• Publications in mainstream media and• Training programs• One-on-one meetings• Wellness programs

trade publications• Global outreach for regulatory standards• Recognition events• Global employee engagement

surveys and initiatives

NON-GOVERNMENTAL ORGANIZATIONSCOMMUNITIES WHERE
HALLIBURTON OPERATES• Halliburton Foundation• Corporate charitable contributions• Charitable giving programs• Employee giving programs• Local sponsorships• Sponsorships• Community volunteerism• News releases and publicity• Industry associations• School programs• Publications in mainstream media andtrade publications

54

Halliburton 2018 Annual & Sustainability ReportABOUT THIS REPORTThis report covers the fiscal period from January 1, 2018 to December 31, 2018
for global Halliburton activities.
Halliburton is a publicly traded corporation registered in Delaware and headquarteredin Houston, Texas.
There were no significant changes to the structure or ownership of the Company
in 2018. In this report, the data encompasses all of our product service lines,
countries, joint ventures and non-wholly-owned subsidiaries. This report contains
descriptions of our 2018 sustainability initiatives. Wherever possible, assessmentsof performance trends from 2016 to 2018 are provided to better highlight thetrends’ significance over time. Topics covered in this report are those most
pertinent to our business sector, and they arise from the context and expectationsof the sector. The boundaries of this report correspond to those of the 2018
Halliburton Form 10-K. The data included in this report come from the Company’s
official management and reporting systems for the various functions describedin this document.
Halliburton used reporting guidelines and terminology developed by the GRI,IPIECA and SASB to inform reporting. We are working toward alignment with Task
Force for Climate-Related Financial Disclosures (TCFD) Recommendations in the
future. We provide annual information to CDP, DJSI and other top organizations
that assess the economic, social and environmental performance of companies.
The 2018 Corporate Sustainability Report was written in accordance with theCore Requirements of the Reporting Guidelines of the GRI Standards, working
toward Comprehensive reporting in the future. We have mapped relevant GRI
indicators to the UN SDGs and SASB on pages 49 and 52.
Published date of previous report: April 2018.
Reporting cycle: Annual
Restatements of previously reported information are indicated where necessary
throughout the report.
The Halliburton Sustainability Report has not been externally assured.
For additional copies, please contact:
Global Sustainability Manager
Global HSE, Service Quality and Continuous Improvement
Halliburton
3000 N. Sam Houston Parkway E
Houston, Texas 77032
United States

Your feedback is valued. Please send any comments, questions or suggestions
about our 2018 Annual and Sustainability Report to sustainability@halliburton.com
or investors@halliburton.com.

www.halliburton.com©2019 Halliburton. All Rights Reserved.
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