2015 Sustainability Report© 2016 Halliburton. All Rights Reserved.
Printed in the USA
H012110

Halliburton 2015 Sustainability Report

281.871.2699
www.halliburton.com

Report Information

Halliburton is a publicly traded corporation registered in Delaware and headquartered in
Houston, Texas. There were no significant changes to the structure or ownership of theCompany in 2015.
In this report, only the financial data encompasses all of our product service lines, countries,
joint ventures and non-wholly-owned subsidiaries.
This report contains descriptions of our 2015 sustainability initiatives. Wherever possible,
assessments of performance trends from 2013 to 2015 are provided to better highlight thetrends’ significance over time. Topics covered in this report are those most pertinent to ourbusiness sector, and they arise from the context and expectations of the sector. Our analysisof the materiality of topics is described on page 5.
The boundaries of this report correspond to those of the 2015 Halliburton Annual Report.
The data included in this report come from the Company’s official management and reporting
systems for the various functions described in this document. No external assurance has beensought for the contents of this report.
The 2015 Corporate Sustainability Report was drafted in accordance with the Core Requirementsof the Reporting Guidelines of the Global Reporting Initiative, version G4.

Previous Reports
Big Vision
Calendar Year 2014
What Moves Us
Calendar Year 2013
Look Beneath the Surface
Calendar Year 2012
Integrating Sustainability –Expanding Our Commitment
Calendar Year 2011
Sustainability is in Our DNA
Calendar Year 2010
Report Parameters
Reporting period:
Calendar Year 2015
Published date of previous report:
March 2015
Reporting cycle: Annual
Printed on FSC-certified paper that
contains post-consumer recovered fiber.
FSC certification ensures that this paper
meets Forest Stewardship Council standards
for responsible forest management.
For More Information
For additional copies,
please contact:
Global Manager of Sustainability
Global HSE & Service Quality
Plaza 13000 N. Sam Houston Parkway E
Houston, Texas 77032
United States
Email:
sustainability@halliburton.com

Table of Contents

2

16

Stakeholder Letter

Health, Safety & Environment

Transparency

4

Journey to ZERO
Highlights
Shared HSE and SQ Programs
Halliburton Management System
Management of Change
Technology and Process Improvement
Tiered Inspection Program
Incident Investigation and Cause Analysis
Health, Safety and Environment Programs
Driving Safety
Near-Miss Reporting
Air Emissions and Greenhouse Gases
Waste Disposal and Recycling
Health and Wellness
Service Quality Programs
Design of Service
Control Points
HSE Awards and Recognition

Shareholder Engagement
Ethics and Board of Directors Oversight
Ethics Helpline and Website
Internal Assurance Services
HSE and Sustainable Development
Executive Committee
Chemical Transparency
Global Reporting Initiative

Corporate Overview

5Strategy & Materiality

8
Guiding Principles
for Sustainability

10

18
18
19
19
19
19
20
20
21
21
22
22
22
22

10
10
10
11
11
11
11
12
12
13
13
13
13

Highlights
Resources and Results
Technology Centers and Remote Operating Centers
Technology Fellows Program
Technology Acquisitions
Promoting Technology Education
Strategic Area Highlights
Deep Water Highlights
Mature Field Highlights
Unconventionals Highlights

37
37
38
38
38
39
39

40
Collaboration
Supply Chain Engagement

41

Local Content and Supplier Diversity

42

Customer Engagement

43

Employee Engagement

43

Industry Engagement

43

Public Engagement

4445

Technology & Innovation
25
25
25
26
26
26
26
27
27
28

Environmental & Social Data

46
GRI G4 Content Index

30
Global Citizenship

14
Financial Performance
Execution During Market Challenges
Looking to the Future

17
17
18
18

24

Corporate Governance &Business Ethics
Board of Directors – Statement of Purpose
Board Composition and Diversity
Board Oversight and Committees
Communication with the Board of Directors
Board of Directors and Executive Compensation
Human Rights
Code of Business Conduct
Foreign Corrupt Practices Act
Employment Practices
Compliance System Audits
Taxation
Security
Political Engagement

36

15
15

Our Employees
Learning, Training and Development
People, Performance and Results
Succession Management
Employee Programs
Rewarding Innovation and Excellence
Diversity and Inclusion
Affinity Groups
Enhanced Partnerships and Diversity Events
Our Communities
In-Kind Donations
Halliburton Foundation
Employee Giving
Employee Volunteerism

31
31
32
32
33
33
33
33
34
34
34
34
35
35
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Halliburton 2015 Sustainability Report

To Our Stakeholders

Our Company’s success is the direct result of strategic planning and innovation for the
long-term. Across the value chain, we take the big view. We look at how our initiatives affectour Company across the business cycle, as well as how they affect our customers, suppliers
and the industry. As an industry leader we believe that this vision will best serve ourcustomers, our shareholders and our communities, now and far into the future.

Central to this are our Guiding Principles for Sustainability: Financial Performance; Health,
Safety and Environment; Technology and Innovation; Global Citizenship; Transparency; andCollaboration. This report summarizes the actions we took in 2015 to uphold these Principles,
and the progress that we made.
The success of Halliburton is not only defined by our financial performance, but also by thequality of our products and services, the talent and dedication of our workforce, the integrityof our actions and our relationships with our communities.
In 2015, our health and safety performance continued to improve, with reductions in both thenumber and severity of health and safety incidents, lowering our total recordable incident rateby 18 percent – building on our historical best performance in 2014. Environmental incidents
were reduced, along with our carbon footprint, which was 148 metric tons for every million
dollars of revenue, down by 59 percent year on year. Road safety continues to be a key risk
area, which led us to strengthen our road safety standards and our proactive driver safety
programs in 2015.
Service quality and execution are key differentiators for Halliburton. Our commitment toservice quality is shown by our industry leadership in API Q2 certification, the industry
standard for quality management for the energy services industry; 37 of our facilities aroundthe world achieved this certification in 2015.
In our financial performance, we outperformed the market and our peer group both inNorth America and internationally, despite the turbulent market conditions. We have pursued
a solid course of cost containment to sustain us over the past year and help us look ahead
with confidence to a market recovery. We believe that the actions taken in 2015 will enable
Halliburton to emerge from this cycle prepared to deliver competitive growth and returns.
Innovation allows us to improve environmental performance for us and our customers. In
each of our key strategic areas – deep water, mature fields and unconventional assets – wehave developed products with unique environmental benefits. For example, our CleanSpacer™
III Spacer Fluid is a biodegradable fluid designed to be collected and distributed in disposal
fields where naturally occurring microorganisms degrade the components. Our CoilComm™
Service uses fiber optics to provide the high-quality data clients need, while it optimizes thechemical treatments required for interventions and reduces the number of trips to the wellsite
to take measurements.

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In unconventionals, where the chief objective is to deliver the lowest cost per barrel of oil
equivalent for our customers, our AccessFrac® Stimulation Service reduces both time andcost for multi-zone fracturing. It features unique components that help optimize proppant
distribution for improved long-term production performance. AccessFrac service won the2015 Hart Energy’s E&P Meritorious Award for Energy Innovation.
In every aspect of our business, integrity is fundamental and non-negotiable. From the way
we treat our diverse global workforce, to our insistence on strict adherence to our Codeof Business Conduct, to our role as neighbor and advocate in communities where we dobusiness – no goal or deadline or revenue opportunity ever takes precedence over maintaining
the highest ethical standards.
Living and working according to our Guiding Principles for Sustainability is a big vision.
But it is at the heart of Halliburton culture, and a key driver for our success. Halliburton
board members, employees, customers, suppliers and shareholders embrace this vision
wholeheartedly, and they share in the Company’s accomplishments.

David J. Lesar
Chairman of the Board andChief Executive Officer

Jeffrey A. Miller
President and Chief Health,
Safety and Environment Officer

Mark A. McCollum
Executive Vice President andChief Integration Officer

Lawrence J. Pope
Executive Vice President of
Administration andChief Human Resources Officer

Robb L. Voyles
Executive Vice President,
Secretary and General Counsel

James S. Brown
President, Western Hemisphere

Joe D. Rainey
President, Eastern Hemisphere

Christian A. Garcia
Senior Vice President, Finance,
and Acting Chief Financial Officer

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Halliburton 2015 Sustainability Report

Corporate Overview

Product Service Lines
Drilling & Evaluation Division• Baroid• Drill Bits and Services• Landmark Software and Services• Sperry Drilling• Testing and Subsea• Wireline and Perforating

Completion &Production Division• Artificial Lift
• Cementing• Completion Tools• Multi-Chem• Pipeline and Process Services• Production Enhancement• Production Solutions

Supporting Both Divisions• Consulting and Project Management

Founded in 1919, Halliburton is one of the world’s largest providers of products andservices to the energy industry. With approximately 65,000 employees as of December 31,
2015, representing 140 nationalities in approximately 80 countries, the Company serves
the upstream oil and gas industry throughout the life cycle of the reservoir – from locatinghydrocarbons and managing geological data, to drilling and formation evaluation, wellconstruction and completion, and optimizing production through the life of the field.

Halliburton comprises 14 product service lines (PSLs). The PSLs operate in two divisions:
Drilling and Evaluation, and Completion and Production. Our Consulting and ProjectManagement PSL works across both divisions.
The Company is organized into four regions: North America, Latin America, Europe/Africa/
Commonwealth of Independent States (CIS) and Middle East/Asia. The regional teams, with
their close knowledge of customers and local conditions, hold the primary responsibility forsales; execution; and health, safety and environment (HSE). The PSLs are primarily responsible
for our processes, technology and execution of service quality (SQ).

4www.halliburton.com

Strategy & Materiality

The fundamentals of Halliburton’s strategy remain unchanged. We are focused on maintaining
a strong customer portfolio; investing in more efficiency; and delivering reliable, best-in-classservice quality for our customers. To achieve this, we focus on three key solution themes:
deep water, mature fields, and unconventionals.

Sustainability Strategy
Sustainability is integral to our overall strategy as we seek to deliver long-term financial
value while minimizing our environmental footprint and having a positive impact on society.
This is expressed in our Guiding Principles for Sustainability.

Central to our sustainability strategy is a value chain approach focused on the material
issues for our business. We consider sustainability in our supply chain and our customers’
environmental and social impacts, alongside our own direct impacts. As a result, our focus ison the areas that are of the greatest significance to our business and to our stakeholders.

Materiality
We performed a full sustainability materiality assessment in 2015 to update our analysis of
the material issues for our business and to ensure that our strategy and reporting meet theneeds of Halliburton and of our stakeholders.
Methodology
The materiality assessment utilized industry best practice on sustainability and material issues,and drew on external and internal stakeholder feedback.
Industry best practice guidance surveyed included the Global Reporting Initiative G4 standard,
the Dow Jones Sustainability Indices (DJSI), the Carbon Disclosure Project, the IPIECA Oil andgas industry guidance on voluntary sustainability reporting, and the Sustainability AccountingStandards Board: Oil & Gas Services Standard.
Investors, customers and suppliers were engaged for external views. Every function within
Halliburton participated in the internal review.
Issues were prioritized based on a qualitative view of their significance to Halliburton, andtheir importance to stakeholders. This prioritization took into account numerous factors, suchas the magnitude of possible environmental, financial or social impacts. Regulatory, communityand customer expectations were also elements of the assessment.

5

Halliburton 2015 Sustainability Report

Strategy & Materiality cont.

Results
On the basis of this analysis, the areas below were categorized as material. This assessment
determines the metrics we report on in this document and the areas where we concentrate
our sustainability efforts.
Environment
•
•
•
•
•

Energy consumption
Greenhouse gas emissions
Water consumption
Releases to environment
Operational eco-efficiency

Economic••••

Business ethics
Risk management
Supply chain sustainability
Local content

Social
••••6

Health and safety
Regulatory compliance
Labor practices
Human rights

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7Halliburton 2015 Sustainability Report

ACHIEVEMENTS ▼INTENT ▼PRINCIPLE ▼Our Guiding Principles

Financial Performance

Health, Safety & Environment

Technology & Innovation

Deliver superior value for our shareholders

Conduct operations that are safe andenvironmentally responsible

Lead the industry in innovationand conscientious stewardship ofglobal resources

To outperform our competitors by deliveringsuperior growth, margins and returns to
our shareholders

To advance on our Journey to ZERO, toward
our vision of zero health, safety, environmentor service quality incidents

To develop solutions that give our customers
economic access to new hydrocarbon
resources and maximize the value of their
existing assets

Outperformed

18 percent

4,232

We once again outperformed our peer groupin North America and internationally.

In 2015, we reduced our total recordable
incident rate by 18 percent.

Cost structure

40 percent

In 2015, Halliburton was granted
514 patents, bringing our active total
to 4,232.

We took action to reduce our cost structure
to mitigate the impact of market conditions.

We had fewer environmental incidents
for every hour worked with a 40-percent
reduction in our environmental incident rate.

37
We achieved an industry-leading 37 API Q2
certifications in 2015.

38 percent
Our patent efficiency has risen by 38 percent
in five years, putting us in the same range asother top global U.S. patent leaders.

50+
Halliburton collaborates on more than
50 research and development projects with
universities worldwide.

Ethics and integrity are the foundation for
Halliburton’s Guiding Principles.

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Global CitizenshipTransparency

Collaboration

Enhance the economic and social well-beingof our employees and the communities inwhich we operate

Be transparent in reporting and validating
our progress

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

To be a preferred employer and make apositive impact in the communities where
we live and work

To provide our stakeholders with thoroughand timely information on our progress

To actively communicate with key stakeholders
to help achieve mutual objectives

50

86,000$1.2 billion

Our employees completed an average of
50 hours of training in 2015, a total of over4 million hours.

Halliburton discloses approximately
86,000 safety data sheets in 21 languages.

Our total spend with small and diverse
suppliers in the U.S. was $1.2 billion in 2015.

14

Six years

Our Code of Business Conduct is publicly
available in 14 languages.

Industry-leading score in Human Capital
Development in the DJSI for the sixth
consecutive year.

20+
There are more than 20 Halliburton Volunteer
Councils worldwide, giving back to theircommunities.

$6 million
In 2015, the Halliburton Foundation donated$6 million to the communities where we
operate in the form of scholarships, grants
and matching employee giving.

13
Investor Relations and executives
participated in 13 major shareholder
events in 2015.

50+
We collaborated with customers on
more than 50 research and development
projects in 2015, innovating to meet their
specific needs.

Built on a solid foundation of ethics and integrity, Halliburton’s
Guiding Principles for Sustainability provide the framework forour operations and our future. To ensure that these principles
guide every aspect of our decisions, plans and actions, we havematched each with a clearly defined intent.

9Halliburton 2015 Sustainability Report

Corporate Governance& Business Ethics

Ethics and integrity are core values at Halliburton and are the foundation of our Guiding
Principles for Sustainability. In practical terms, these are expressed and enforced through our
Corporate Governance Guidelines, our Code of Business Conduct (COBC), our employment
practices, and our compliance system audits. These governance processes, and the ways inwhich we apply integrity and ethics across our operations, are described below.

Corporate Governance
Board of Directors – Statement of Purpose
Members of the Halliburton board of directors are personally and professionally committed
to the Company’s success in achieving its long-term goals. They guide the Company inits sustainability efforts, and in fulfilling its responsibilities to communities, shareholders,
employees and the environment.
Board Composition and Diversity
The Halliburton board of directors provides broad oversight of the management andgovernance of our Company. In 2015, our board had 12 members. All directors stand forelection at our annual meeting of shareholders and, except for the chairman of the board
and the Company president, all directors are independent as defined by the New York Stock
Exchange and our Corporate Governance Guidelines.
The board of directors has determined that the interests of our shareholders are best met
through combining the positions of chairman of the board and chief executive officer (CEO).
This decision is reviewed annually and the board retains the authority to separate the positions.
In addition to the chairman, the board has designated one of its senior independent members
to act as Lead Director.
Halliburton and its board of directors are committed to maintaining diversity, including
within its own membership. The board’s Nominating and Corporate Governance Committee
annually reviews the Company’s director criteria and the composition of the board of directors
to evaluate diversity profiles, as well as skills, experience, qualifications and talents. Additionally,
the committee performs assessments of the board, committees and directors; considers
recommendations from shareholders and directors; and proposes directors for the Company’s
annual board elections. Typically, appropriate director candidates are identified by board
members, our management, or a third-party executive search firm.
Board Oversight and Committees
The board of directors is guided by the Halliburton Corporate Governance Guidelines, which
are reviewed annually. Topics pertaining to corporate citizenship, governance and sustainability
are routinely reviewed at meetings of the board and committees. The board and committees
also carry out ongoing reviews of HSE performance, financial results and current risks facing
the Company. In 2015, the board of directors met six times; the Compensation Committee andthe HSE Committee met five times; the Audit Committee met nine times; and the Nominating
and Corporate Governance Committee met four times. All directors can call executive sessions
or request a special meeting of the board or of a committee.
The members of the board of directors are also committed to enhancing and developing theircollective knowledge of sustainable development and of the economic, environmental andsocial factors that may affect the Company’s success. They achieve this through a variety
of measures, including expert briefings, training seminars and study.

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The board of directors, from left to right:
James R. Boyd
Retired Chairman of the Board,Arch Coal, Inc.

Communication with the Board of Directors
Halliburton management and our board of directors encourage open and transparent
communication with shareholders, employees and other interested persons. To make thispossible, a phone number and listings of postal and email addresses are provided on theHalliburton website. In addition, our corporate secretary and our Investor Relations groupinteract with shareholders regularly and make themselves available for calls or meetings.
Board of Directors and Executive Compensation
The board of directors’ compensation program takes the form of a fixed retainer and annual
restricted stock awards.
The executive compensation program features market-driven compensation within acommon total-compensation framework, with flexibility to accommodate differences inbusiness drivers and objectives among the Company’s varied business units. Our executive
compensation includes a base salary, a balanced mix of long- and short-term incentives,supplemental discretionary retirement and benefits. This program is regularly reviewed toensure that it supports the Company’s strategies and generates value for our shareholders.
Additional information on these programs is published in our proxy statement.

Business Ethics
Human Rights
Halliburton and its board of directors support universal human rights as defined by theUnited Nations Universal Declaration of Human Rights, and we preserve these rights for our
employees in all our locations. We believe that safeguarding basic human rights is primarily
the responsibility of local governments, and, as an employer of a multinational workforce,
we require that all our employees be treated with dignity and respect.
Code of Business Conduct

Milton Carroll
Executive Chairman of the Board,
CenterPoint Energy, Inc.
José C. Grubisich
Chief Executive Officer,
Eldorado Brasil Celulose
J. Landis Martin
Founder and Managing Director,
Platte River Equity
Debra L. Reed
Chairman and Chief Executive Officer,
Sempra Energy
David J. Lesar
Chairman of the Board and Chief Executive Officer,
Halliburton Company
Robert A. Malone
Executive Chairman, President, and Chief Executive
Officer, First Sonora Bancshares, Inc.
Jeffrey A. Miller
President and Chief Health, Safety andEnvironment Officer, Halliburton Company
Nance K. Dicciani
Chair of the Board and Interim Co-Principal Executive
Officer, AgroFresh Solutions, Inc.
Abdulaziz F. Al Khayyal
Retired Senior Vice President ofIndustrial Relations, Saudi Aramco
Murry S. Gerber
Retired Executive Chairman of the Board,
EQT Corporation
Alan M. Bennett
Retired President and Chief Executive Officer,
H&R Block, Inc.

Our Code of Business Conduct addresses the standards, principles, laws and regulations
that impact our business. It delineates what is expected of employees and designates
potential consequences for violations – up to and including termination. The COBC applies
to all employees, officers and directors of the Company. We also expect others who
act on our behalf, such as suppliers, agents and consultants, to abide by the COBC.
We perform regular audits to promote compliance with the COBC requirements.
We provide the COBC in 14 languages, and a web page on our intranet houses the COBC
and various complementary materials. Each employee is required to complete basic COBC
training every other year, and managers must complete a course annually; the effect of
this biennial requirement on training numbers can be seen in the chart on page 12. In 2015,
45,000 employees completed approximately 48,000 hours of COBC training.

11Halliburton 2015 Sustainability Report

14

15

13

14

8,650

15,3007,873

1345,000

FCPA Training
courses completed

65,000Code of BusinessConduct Training
courses completed
20,000

Corporate Governance & Business Ethics cont.

15

Employees are expected to report any real or possible violations and may remain anonymousin doing so. Several avenues for reporting possible violations of the COBC are available.
Reports may emerge through management review or from corporate sources such as Corporate
Security, or may be submitted by employees through the Ethics Helpline. A third-party phoneservice, the Ethics Helpline is available in several languages, 24 hours a day, seven days aweek. Retaliatory actions against employees who report violations are not tolerated.
The COBC Practice Group, part of the Halliburton Law Department, fully investigates all
submitted reports of misconduct, and management is responsible for taking corrective action
as needed, up to and including termination. During 2015, the COBC Practice Group received
143 reports of alleged misconduct; however, investigations revealed that the majority of thesewere not violations of the COBC. Of the remaining reports, the allegations were related todiscrimination or harassment; fraud or theft; conflicts of interest; bribery, kickbacks, or sensitivetransactions; health, safety and environment; or unauthorized disclosure of confidential
information. Corrective actions resulting from these investigations have included terminations,written and spoken reprimands, referrals for counseling, resignations, restitutions, suspensions
and probations.
Foreign Corrupt Practices Act
As part of the COBC, we have in place business practices and policies designed to minimize
risk of violating the U.S. Foreign Corrupt Practices Act (FCPA), the U.K. Bribery Act, and othersimilar laws and regulations. Halliburton employees are prohibited from securing contracts for
the Company by paying or offering bribes, kickbacks or any other illegal, unethical or immoral
compensation or accommodation to government officials.
Every potential commercial agent must undergo a detailed due-diligence investigation. Multilevel
management approvals are required before any commitment can be made to hire an agent
or pay any commission. The Company expects its employees to behave professionally andethically when dealing with governmental entities or companies. We provide in-person andonline training on the FCPA in numerous languages. Managers and all expatriate employees
are required to complete this training annually; in 2015, nearly 8,650 courses were completed,meeting our internal requirements. This was reduced from 2014 because most staff are
required to complete training every two years.
Employment Practices
Our COBC applies to all employees and contractors, and states that any behavior that creates
an intimidating, hostile or offensive work environment will not be tolerated. We work to provide
a professional environment free of discrimination, harassment, intimidation or coercion relating
directly or indirectly to race, color, religion, gender, citizenship, marital status, veteran status,
genetic information, age, disability, national origin, sexual preference or orientation, or any
other status protected by law or regulation. We follow all local laws regarding employee wages,
and we frame our compensation practices based on market and industry standards. We do
not employ child labor. We prescreen potential suppliers, vendors and contractors, and confirm
their legal compliance by requiring that their proposals include a statement of their intent toadhere to laws and regulations regarding forced or child labor and the payment of wages. As
of December 31, 2015, approximately 17 percent of our employees were subject to collective
bargaining agreements.

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Compliance System Audits

Security & Training by Country

Our Compliance Program includes regular internal reviews of geographical or business units
to evaluate adherence to the COBC. We also periodically engage outside experts to review
the Compliance Program, to recommend improvements and ensure that we are employing
best practice; the latest review was performed in 2014.

Malaysia

Taxation
The Company’s taxation strategy is consistent with our commitment to integrity and ethics
and with our Guiding Principle on global citizenship, which is to enhance the economic andsocial well-being of our employees and the communities where we operate. We are committed
to meeting our legal obligations in the payment of taxes, and the disclosure of taxes paid andeffective rates. This information is outlined in the notes to our financial statements.
Security
The Company uses third-party armed security in a small minority of the countries in which
we operate, and we make significant efforts to ensure that all security providers uphold ourhigh standards of integrity and ethics.
The countries, the type of security provider and the training provided are listed on the right.
All third-party security providers are required to ensure that security personnel complete allnecessary training, and to have procedures in place that are consistent with the parametersspecified in our COBC.
Political Engagement
Halliburton participates in, and is affected by, the global and local political environments inwhich it operates. Through all appropriate means, we support balanced, commonsense andlong-term policy solutions to those issues that can have an impact on sustained business
opportunities, job creation, economic growth and energy security. Integrity and ethics dictate
our approach to political engagement.

Type of Security:
Auxiliary Police
Training:
Malaysia Police training

Nigeria
Type of Security:
PoliceTraining:
Nigeria Police training

Iraq
Type of Security:
Private Contractor
Training:
Voluntary Principles on Security and Human Rights,
Montreux Document; regular firearm and executive
protection training

PakistanType of Security:
Private Contractor
Training:
Weapons handling, basic guard duties, incident reporting

Under U.S. federal law, labor unions and corporations are prohibited from directly contributing
to candidate campaigns. The law does allow for labor unions and corporations to form politicalaction committees, which pool voluntary contributions from their members and donate those
funds to candidate campaigns. Accordingly, the Halliburton Political Action Committee (HALPAC)
makes contributions to political candidates in the U.S. whose views and positions on industry
issues best serve the Company’s interests. HALPAC is funded by voluntary contributions fromparticipating U.S. employees and complies with all regulations and disclosure requirements. It
draws from the suggestions of HALPAC members and a 10-member PAC board to determine
which political candidate or elected officials, regardless of party affiliation, it will support.
A record of all HALPAC contributions is available on the Federal Election Commission website,
and all trade association dues are regularly reported.
In addition, Halliburton supports a separate employee grassroots program that provides
employees with the tools and information needed to engage directly in legislative andregulatory policy discussions.

13

Halliburton 2015 Sustainability Report

Financial Performance

Outperformed
We once again outperformed our peer group in
North America and internationally.

Cost structure
We took action to reduce our cost structure to
mitigate the impact of market conditions.

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Guiding Principle
Deliver superior value for our shareholders

For 2015, Halliburton was resilient in the face of challenging market conditions, outperforminga 35-percent decline in both the average worldwide rig count and global drilling and completions
spend. We once again outperformed our peer group, both in North America and internationally.

Execution During Market Challenges
Halliburton’s resilience in 2015 is founded on our strong customer portfolio, our efficienttechnology spend and our superior service quality. We’re confident that, by executing ourstrategy and building on our successes, we can continue to outperform our competitors.
We experienced a decline in revenue and operating income during 2015, as compared to 2014,as a result of the depressed crude oil pricing environment and its corresponding negative
impact on activity levels and pricing for our products and services. The industry experienced
an unprecedented decline in North America stimulation activity during 2015, which significantly
impacted our financial results. From the peak in November 2014 through December 31, 2015,
the U.S. land rig count declined approximately 64 percent, which in turn has resulted in pricing
pressure across the services industry.
We generated $23.6 billion of revenue during 2015, a 28-percent decrease from 2014.
We reported an operating loss of $165 million in 2015, as compared to operating incomeof $5.1 billion in 2014. We recorded $2.2 billion of impairments and other charges during
2015, primarily as a result of the downturn in the energy market. These charges consistedof equipment write-offs, asset impairments, expenses and write-downs related to idle
equipment, impairment of intangible assets, inventory write-downs, severance costs,
country and facility closures, and other items. These actions will right-size our cost structure,
unfortunately including a global headcount reduction of approximately 25 percent since thebeginning of 2015, and mitigate the impact of current market conditions.
Our international business performed well during 2015. Annual revenue declined 16 percent
from the prior year, outperforming our largest peer for both revenue and margins. Despite
pricing and activity headwinds, we were able to improve 2015 operating margins due to a focus
on cost management. North America revenue declined 39 percent compared to 2014, as aresult of pricing pressure and substantial declines in activity.
Our playbook for a downturn is simple – we control what we can control, preserve our market
position and live within our cash flow. In 2015, we executed our key strategies in theunconventionals, deepwater and mature field markets on a near real-time basis. But we also
looked beyond the cycle, investing in strategic initiatives and preparing for the next cycle.
Halliburton traditionally has been aligned with customers that have strong balance sheets
and fairway acreage in the most important oil and gas basins in North America and across theglobe. We are engaged with them in their efforts to reduce the cost of producing each barrel ofoil equivalent. We have continued to offer our customers products, services and technologies
that are more efficient, reduce non-productive time and improve performance.
An example of this is the deployment of our Frac of the Future™ hydraulic-fracturing delivery
platform, which continued in 2015. This industry-leading platform has improved all aspects ofsurface efficiency, offering a clear advantage to our customers through the cycle, and now
makes up close to 60 percent of our fleet.
Looking to the Future2016 is expected to be another challenging year for the industry. However, our strategy
remains unchanged. We are focused on maintaining a strong customer portfolio; investing in
efficient technology; and delivering reliable, best-in-class service quality for our customers. We
are looking through this cycle, drawing upon our management’s deep experience and preparing
the business for growth when the industry recovers.

15

Halliburton 2015 Sustainability Report

Health, Safety & Environment

18 percent
In 2015, we reduced our total recordable incident
rate by 18 percent.

40 percent
We had fewer environmental incidents for every
hour worked with a 40-percent reduction in ourenvironmental incident rate.

37
We achieved an industry-leading 37 API Q2
certifications in 2015.

16www.halliburton.com

Guiding Principle
Conduct operations that are safe andenvironmentally responsible

Health, safety, environment and service quality are core values for Halliburton. Our objective
is to meet or exceed all internal and external compliance requirements – meeting the
expectations of regulators, customers and our own internal standards. Beyond compliance,
we are committed to continuous improvement across all of these business-critical areas.

Leadership
Commitment

Our leadership commitment, robust management system, and the competencies andcommitment of our people are core elements of our success and provide the foundation of
our Journey to ZERO.
Journey to ZERO

Performance
Verification

HMS
Continuous
Improvement

Technology
and Process
Improvement

Training andCompetency

Turning our commitments into practice is at the heart of our Journey to ZERO. Simply stated,
it is a concerted effort to achieve ZERO health, safety and environmental incidents and ZERO
non-productive time every day, on every job. There are many areas within Halliburton where
this is happening now.

Communicate
and Address
Risks

This vision encompasses our commitment to our employees, our customers and to ourcommunities. It expresses our priorities – to acknowledge the journey, accept the challenge
and make no compromises in execution.
Journey to ZERO defines six elements that provide a roadmap for improvement. These elements
remain consistent each year, while specific focus areas evolve annually. The elements are:

15

13

14

15

.18

14

.10

13

.13

•

Lost-Time Incident Rateper 200,000
hours worked
.14

•

.60

•

Total Recordable
Incident Rateper 200,000
hours worked.40•

Leadership Commitment
Halliburton Management System (HMS) Continuous Improvement
Training and CompetencyCommunicating and Addressing Risk
Technology and Process Improvement
Performance Verification

.49

•

.59

•

Highlights
•

•

•

•

We continue to reduce the frequency of health and safety incidents. Building on ourbest-ever performance in 2014, we reduced our 2015 total recordable incident rate (TRIR)
by a further 18 percent to 0.40 incidents per 200,000 hours worked. This compares to theInternational Association of Drilling Contractors (IADC) industry average of 0.60 in 2015.
We have also reduced the severity of incidents that do occur, and have surpassed thehistorical best performance achieved in 2014 in our lost-time incident rate (LTIR), which
is 23 percent lower year on year at 0.10 incidents per 200,000 hours worked. This comparesto the IADC industry average of 0.18 in 2015.
We have reduced the frequency of environmental incidents of all types in our operations,achieving a 40-percent reduction in our recordable environmental incident rate (REIR)
compared to 2014.
We achieved two consecutive years of performance improvement for non-productive time(NPT), focusing on our planning and change management process to deliver a year-on-year
reduction of 21 percent.

■ International Associationof Drilling Contractors(IADC) industry average International Associationof Drilling Contractors(IADC) industry average

17

Halliburton 2015 Sustainability Report

Health, Safety & Environment cont.

We continue to lead the industry in American Petroleum Institute (API) Specification Q2
Certification. API Q2 is a risk-based quality management system approach that focuseson competency, service design, contingency planning, supply chain controls, preventive
maintenance, inspection, service quality plans and management of change. It is the firstinternational standard that outlines fundamental, risk-based quality management systems
for oil and natural gas services companies. In 2015, 37 of our facilities received certification,
including operations in Indonesia, Malaysia, Brunei, Kuwait, Brazil and Mexico.
Strategy execution was the foundation of these achievements, with major components being:

SWA

Stop Work Authority•

Our global Stop Work Authority (SWA)
program plays a foundational role in preventing
incidents before they occur. 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 have a concern regarding the control ofan HSE risk or service delivery.

•

Stop Work Authority•

Competency assessments
Design of Service (DOS) and process and PSL control points
Process assurance and structured self-verification

As a Company, we run numerous programs to drive performance in HSE and Service Quality.
In the sections below, we describe critical processes that operate across HSE and SQ.
We then describe key programs that are specific to HSE and those that relate solely to SQ.

Shared HSE and SQ programs
Halliburton Management System

98

118

125

159

187

Incident Causal Factors
for high-potential
HSE incidents
2

5

5

Fatalities
per year

The Halliburton Management System (HMS) outlines how we work. HMS is the integrated
set of policies, business practices and procedures that are used by the Company in defining,planning and executing business activities. It enables employees to work safely, consistently
and effectively by providing reliable standardized processes such as Design of Service,contingency planning, Management of Change (MOC) and Stop Work Authority.
HMS complies with the requirements of all relevant recognized management systemstandards, including ISO 9001, ISO 14001, OHSAS 18001, API Q1, API Q2 and API RP 75.
Management of Change
Our Management of Change process is designed to control change-related risk. Because all
operational and process changes have the potential to cause disruption or to create a newhazard, they must be reviewed, planned and approved before implementation. The MOC
process may be initiated internally or by external parties, such as customers, subcontractors
or regulatory bodies, that have an established interest in, or relationship with, the Company.
Technology and Process Improvement

13

14

15

■ Employee■ Contractor

18

A

B

C

D

E

A Work Direction
B Management System
C Human Engineering
D Procedures
E Training

A major way we engineer out risk is by focusing on product and service design. Our Technology
organization designs equipment using the LIFECYCLE stage-gate process, which includes
HSE and reliability reviews during the design and development of a new technology. Our
Manufacturing organization builds the products safely, outperforming the industry average,
and our products are designed to have best-in-class safety performance while in use.
Engineering out risks includes attention to the hazards and environmental impact of chemicals
used. The Halliburton Chemistry Scoring Index (CSI) ranks and compares the relative risks
associated with the chemical products used in oil and gas operations.

www.halliburton.com

Using the CSI, our customers can compare chemicals within the same product class, enablingthem to choose products that fit their needs while posing the least potential risk. The CSI isaligned with the hazard-determination principles of the United Nations Globally Harmonized
System of Classification and Labeling of Chemicals (GHS), and with other regulatory standards.

10 to ZERO

Tiered Inspection Program
Our tiered inspection program is a systematic self-verification process that is fundamental toour drive for continuous improvement in HSE and Service Quality. It consists of a job-site or
location assessment, a management system assessment, and global oversight through ourInternal Assurance Services. In 2015, our focus was on achieving improved process adherence
and application of management controls.
For Service Quality, job-related assessments are performed by managers during visits tooperational locations, focusing on wellsites and workshops. Results are used to verify employee
understanding of HMS processes and controls, and to assess competencies and training.
This enables us to build on the success of this program in previous years. In 2015, this activity
was expanded to include a Job Packet Review to verify that defined Control Points are being
validated and that all necessary documentation is complete and accurate.
Incident Investigation and Cause Analysis
Crucial components to improving our key HSE and SQ performance have been our rigorous
investigation of incidents and our ranking of incidents in terms of both severity and consequence.
We also track near misses, which are incidents where the potential for personal injury, property
damage, adverse environmental impact or negative service quality performance was present,
even though nothing occurred. We classify a near miss as a high-potential incident if theconditions could potentially have resulted in serious personal injury, property damage oradverse environmental impact.

Driving
SafetyWork
PermitPersonal
Protection
Equipment(PPE)

Lock Out/Tag Out(LOTO)

ConfinedSpace

Working
At Height

ChemicalHandling

DroppedObjects

Hand
Tools

Lifting andHoisting

Personal Safety – Halliburton Life Rules
As a foundational element of our Journey toZERO, we created the Halliburton Life Rules,
a set of 10 core factors that affect personalsafety. They are based on our HSE standards
and are a powerful tool to communicate
critical requirements to our employees. All
employees are expected to learn the rules
and live by them.

Investigation of significant incidents through our Significant Incident Review process brings
immediate visibility to high-risk incidents, and enables timely and rigorous assessment todetermine root cause.

Near-Miss
Incident Rateper 200,000
hours worked
4.72

3.86

4.55

Driving is the single most significant risk for Halliburton, and we are saddened that it was
the cause of our only employee fatality in 2015. To increase driver safety, we continue toimprove our tools, such as In-Vehicle Monitoring System (IVMS).

High Potential
Incidents per Yearfor high-potential
HSE incidents
328

Driving Safety

463

Below are selected HSE programs that address our greatest risks and most material issues.

551

Health, Safety and Environment Programs

13

14

15

13

14

15

Vehicle incident rates continued to improve, with 2015 rates 5 percent lower than 2014.
Along with the ongoing Journey Management and IVMS initiatives, we continue to build
our global community of practice for Land Transportation Safety by exchanging valuabletransportation safety information and best practices throughout the regions. Through Standard
revisions and MOC guidance, our Journey Management system emphasizes risk management
and encourages our employees to understand the routine and non-routine risks and to makemitigating decisions.

19Halliburton 2015 Sustainability Report

Health, Safety & Environment cont.

“

Journey to ZERO expresses
our priorities – to acknowledge
the journey, accept the challenge
and make no compromises
in execution.

Near-Miss Reporting
The year on year increase in near-misses reported on page 19 is driven by a concerted effort
to increase reporting of Life Rules-related incidents, even when no negative outcome actuallyoccurs. This maximizes our opportunities to learn and to improve performance.
Air Emissions and Greenhouse Gases
Halliburton is committed to continual improvement in the emissions to air that result from ouractivities and to reducing greenhouse gas emissions across our value chain. We achieve this by
working to reduce the environmental footprint of the equipment we use, of our corporate realestate, and of the products and services we offer.
Process Safety – Critical Focus Areas
Critical Focus Areas (CFAs) are conditions of
the job environment that present the biggest
risk for HSE, process safety or SQ incidents.
All CFA events are investigated, howeverminor, including near-misses and the use of
Stop Work Authority. The CFAs are:• Barriers – The physical measures (such as

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

3,497

357

14

15

14

148

Absolute Emissions
thousand metrictons CO2e
11,738packers, plugs, drilling fluids or cement)that prevent gas or oil from flowing into
the well from the formation and travelingto the surface• Hydrocarbons to the surface – Flow of gas oroil to the surface, such as might occur duringwell-testing or well-cleanup operations• Trapped pressure – Equipment in which a
release of pressure could occur; for example,
discharge iron, lab machinery, blowout
preventers, pipelines, hoses, tanks or silos• Well proximity – The potential, while drilling,
to intersect a producing or existing wellbore• Radiation and explosives – Any surface
activities involving a radioactive source or
explosive materials

One element in this effort has been our leadership in the deployment of diesel engines thatmeet the U.S. Environmental Protection Agency (EPA) Tier 4 standard. The Tier 4 standard
sets stringent requirements for non-road diesel engines to lower emissions of particulates,
nitrogen compounds and other pollutants by as much as 90 percent. We are unique in theoilfield services sector in designing and manufacturing our own equipment that uses theseengines, working with engine manufacturers and making significant investments in researchand development to reduce emissions. Today, the Company’s surface equipment is among
the cleanest available and it comprises the largest fleet of Tier 4 compliant diesel engines inoperation in the U.S. and the Gulf of Mexico.
We have continued to improve the environmental performance of our global real estate. Several
key sites have achieved certification for Leadership in Energy and Environmental Design (LEED)and similar awards, notably our main Houston location, known as the North Belt campus. The
certifications received in 2015 are listed on page 21.
In 2015, our global greenhouse gas emissions decreased to approximately 3,497 million metrictons, a reduction of 70 percent from our restated emissions for 2014. The comparative figure
has been recalculated because a revised data collection and analysis methodology provided
greater visibility of our operational fuel consumption, enabling the reporting of more complete
and accurate information.
The year on year decrease is primarily due to reduced overall activity levels in the year andto changes in the activity mix in terms of PSLs and geographies. However, as describedabove, we have also increased operational efficiency through improvements in real estate andoperating assets, and through process efficiency. These include continued roll-out of the Fracof the Future technology suite. Greater efficiency is reflected in our lower emissions intensity in2015, with emissions per million dollars of revenue down by 59 percent to 148 metric tons.
In addition to addressing our direct environmental impacts, Halliburton is working to provide
global energy solutions that go beyond conventional energy sources. We are a leader ingeothermal energy and in carbon capture and storage. An example of our achievements inclean energy is described on page 21.

15■ Indirect Emissions■ Direct Emissions

20

www.halliburton.com

Duncan Water Project
One project that showcases the way we target
our environmental footprint is the program at our
Duncan, Oklahoma, facility to reduce water use.
Through upgrading plant equipment, installing
water-efficient technologies in our cafeteria andrestrooms, utilizing advanced cooling systems andengaging our people in water conservation, thisproject achieved annual water savings of morethan 10 million gallons.

“

Our Recordable Environmental
Incident Rate was 40 percent
lower in 2015 than in 2014,
at 0.03 incidents per 200,000
hours worked.

Sustainable Building Awards
LEED – Silver

Geothermal Projects in Indonesia
With 40 percent of the world’s total geothermal resources, Indonesia istransforming its economy with clean, renewable energy. Since the 1990s,
Halliburton has provided services in this fast-growing market, enabling clients
to complete wells faster, more cost-effectively, and with an unparalleledsafety record.

Houston North Belt – Child Care Center
Houston North Belt – Plaza 1
Houston North Belt – Plaza 2
Rio de Janeiro – Technology Center

Recordable Environmental
Incident Rateper 200,000
hours worked

482

.04

.05

.03

We have achieved further improvements in the quality and coverage of our waste and disposal
data in 2015, and are able to report on disposal methods of all waste globally. An overall recycling
rate of 82 percent was achieved, with only 10 percent of waste going to landfill. Further details
are reported on page 45.

Total Volume of Spills
in cubic meters

631

Waste Disposal and Recycling

452

Many geothermally rich areas are also protected rainforest conservation
areas with important ecosystems. Halliburton has developed new directional
drilling techniques for geothermal assets that allow more wells to produce
from a single pad. This minimizes disruption to the environment while
increasing the site’s generating capacity and return on investment, benefiting
all stakeholders.

13

14

15

13

14

15

The overall proportion of our waste that is defined as hazardous has declined slightly to 7 percent
in 2015 (2014: 8 percent).
The most significant change in 2015 is that our waste generated has increased significantly
year-on-year. The driver for this has been the restructuring of our cost base in 2015, as describedin our financial statements. This has led to the retirement or disposal of inventory and obsolete
capital assets, many of which are included in the 2015 waste statistics.
Health and Wellness
Halliburton has a global program to ensure the health and well-being of its employees and theirfamilies. Our Wellness Committee, under executive sponsorship, has a mission to increaseawareness and create opportunities for employees and their families to take ownership of theirhealth. The initiative focuses on five key elements:
•
•
•
•
•

Nutrition
Physical health
Emotional health
Financial wellness
Community involvement
21

Halliburton 2015 Sustainability Report

Health, Safety & Environment cont.

“$157.4Service Quality Programs
Service Quality performance improvements have been driven by our intensified focus onprocess adherence and the execution of management controls to mitigate risk, such as our
Design of Service (DOS) process and defined PSL Control Points.
Design of Service
Design of Service provides a written record of job objectives and the major decisions impacting
the job design, their process of determination, and the elements that provide assurance
for that design. A formal Design of Service is in place within each PSL to ensure that all
requirements are gathered, including customer-specific, legal and other requirements based on
location. Every DOS includes methods to document risks identified during the review, mitigation
efforts taken to reduce or eliminate the impact of that risk, and contingency planning to coversituations if the risk does occur. The four main elements of DOS are:
•

$42.7

•

$128.1.39

HSE Fines and Penalties
US $1,000.41

Recordable Vehicle
Incident Rateper 1,000,000
miles traveled.50

Building on our best-everperformance in 2014, wereduced our 2015 total
recordable incident rate (TRIR)
by a further 18 percent to
0.4 incidents per 200,000
hours worked.

••

Customer requirements
Risk assessment/contingency plan
Technical output
Evidence of review and approval

Control Points
A control point is a requirement or activity that drives consistent, effective design and executionof the job. The term may also refer to a review which confirms that key steps were performed,
providing assurance that the job 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 aspart of each job.
13

14

15

13

14

15

HSE Awards and Recognition
Examples of the HSE awards that Halliburton received in 2015 include:

52,280814,508

Waste Data
tons

14

15

•

•

The DJSI and RobecoSAM recognized Halliburton as one of the top five sustainability
performers in our industry, including Halliburton in the DJSI World Index and the 2016
Sustainability Yearbook.
In 2015, our Carrollton, Texas, location won the City of Carrollton Environmental
Distinction Award for the Company’s continued commitment to environmental sustainability
and leadership.

■ Hazardous Waste■ Non-Hazardous Waste

22

www.halliburton.com

23

Halliburton 2015 Sustainability Report

Technology & Innovation

4,232
In 2015, Halliburton was granted 514 patents,
bringing our active total to 4,232.

38 percent
Our patent efficiency has risen by 38 percent
in five years, putting us in the same range asother top global U.S. patent leaders.

50+
Halliburton collaborates on more than
50 research and development projects with
universities worldwide.

24

www.halliburton.com

Guiding Principle
Lead the industry in innovation and conscientious stewardshipof global resources

15

4,232

14

3,795

2.1%

13

Patents

3,553

1.8%

Total Research &Development Spendpercent of revenue
2.0%

Halliburton offers the industry’s most advanced products and services for the upstream oil
business. Our global research and development (R&D) organization works with customers
to deliver products and services that help improve their project economics and maximize thevalue of their oil and gas assets. Our value proposition – improving the customer’s cost per
barrel of oil equivalent – drives our development of custom solutions that reduce uncertainty,
lower the costs of exploration and development, maximize hydrocarbon recovery, and provide
access to reserves located in the most difficult environments. These technologies help solidify
our relationships with the world’s top energy producers.

13

14

15

Highlights
In 2015, our newest products and services received numerous awards, listed on page 28,
providing industry recognition that is critical to our success with existing customers and to
our continued growth.
In applying our technologies to address customer needs, we always take a practical, pragmatic
approach. In 2015, Halliburton collaborated with customers on more than 50 research anddevelopment projects, designing products to address customer-specific challenges. Additionally,
Halliburton has established more than 50 technology collaborations with universities globally.

■ Total■ New

Resources and Results
In 2015, our strategy remained consistent even as the global energy markets experienced
a downturn. We continued to invest in research and development – $487 million in R&D
investment comprised 2.1 percent of the Company’s revenues for the year.
Our investments continue to make a significant impact on our patent issuances. In 2015,
Halliburton had a 4-percent increase in the number of new U.S. patents issued, comparedwith 2014. Additionally, over a five-year period, Halliburton increased patent efficiency by
38 percent when measured by the cost in R&D spend per U.S. patent granted. In 2015, costs
were $0.93 million in R&D spend for each U.S. patent granted. This puts Halliburton into thesame patent efficiency range as other top global U.S. patent leaders.
In the last three years, we have increased our technology headcount by 8 percent globally,
while our non-U.S. population grew by 34 percent. Additionally, the number of technology
employees with doctoral and master’s degrees has grown by 9 percentage points in thepast three years. In the same period, our female population in technology has increased by
6 percentage points, including an increase of 5 percentage points in the number of females
in technology leadership roles.
Technology Centers and Remote Operating Centers
Our global network of 16 technology centers puts Halliburton teams in closer communication
with customers, and gives the Company access to a global workforce with diverse talents,
educational backgrounds and skill sets.
The Company’s 17 remote operating centers focus on service quality and process assurance,
primarily supporting drilling activities. These centers have helped Halliburton reduce the costof poor quality, minimize nonproductive time, improve safety and efficiency, and reduce thenumber of operational personnel at the wellsite, reducing or eliminating costs such astransportation. Halliburton has developed a variety of software applications for use at thewellsite and in remote operating centers around the globe that dramatically improve the speed
and quality of the decisions needed for the development of our customers’ assets.

25

Halliburton 2015 Sustainability Report

Technology & Innovation cont.

Technology Fellows Program
The Technology Fellows Program is an important aspect of our Company’s technology culture.
Technology Fellow is a distinction earned by our highest-performing engineers and scientists.
The distinguished team of 12 Technology Fellows is focused on studying the industry’s latest
technology trends and steering research toward the next generation of products. They also
ensure the uninterrupted transfer of knowledge, identify exceptional performers, and cultivate
our pool of scientists and engineers.
Technology Acquisitions
To complement organic growth in our capacity to innovate, we acquire technology-based
companies that can make a significant contribution to our mission. In 2015, we acquired
Sensor Developments, a Norway based company that offers a technology called the LinX®
system. The LinX system enables wireless through-casing power and communication.
With the LinX system, sensors can be remotely mounted outside the wellbore, without
traditional electrical connections, to supply continuous, accurate data. Having the rightdata provides a better understanding of the reservoir, increasing operator confidence andleading to more-informed decision-making. The result is reduced operational expendituresand maximized production.
Promoting Technology Education
Halliburton actively seeks opportunities to identify, develop and foster strategic academic
relationships worldwide. The goal is to give students bound for the upstream oil and gas
industry a foundation in the technologies that will help them succeed in their careers.
Our focus is on students in chemical, electromechanical and geoscience disciplines.
We continue to make software grants to universities, including to new recipients, based on
the strategic importance of a university to the business plan of the Halliburton region in which
it is located. In 2015, Halliburton awarded $218 million in academic and research grants.
Strategic Area Highlights
In every development project, sustainability is both an objective and a design consideration.
Our technologies are engineered to enable Halliburton and our customers to improve
environmental performance by making jobs more efficient, safer, more economical and more
effective in reducing environmental impact. The following are a few of the award-winning,sustainability-driven products that we deployed in 2015, presented in relation to each of ourstrategic focus areas.

26

www.halliburton.com

Deep Water Highlights
In deep water, we are delivering products that focus on reducing uncertainty and increasing
operational reliability for our customers.
Environmentally Distinctive Burner is an oil burner specifically designed for use inecologically sensitive areas, where it is critical to quantify produced emissions. In order to
conduct successful well tests, substantial amounts of oil must be brought to the surface
and, in most instances, burned or flared. Traditionally, well test oil burners have been passive
equipment configured for expected conditions, but unable to adapt or react during operation.
These burners could introduce a significant amount of unburnt hydrocarbons into theenvironment during transient operating conditions. The Environmentally Distinctive Burner
is a clean-burning system that produces 14.5 times less fallout than the previous industry
standard. The Environmentally Distinctive Burner received a 2015 Hart Energy’s E&P Meritorious
Award for Energy Innovation in the HSE category.
NeoCem™ Cement is the first low-Portland cement system capable of improving the integrityof the hydraulic annular seal, as well as the set-sheath elasticity – outperforming conventional
cement systems in providing a dependable barrier in oilfield wells.
SCR-200L™ Liquid Retarder is a synthetic, nonhazardous cement retarder. While compatible
with high-quality cements and other additives, SCR-200L is a highly biodegradable, nondispersing
retarder designed specifically for high-temperature designs in environmentally sensitive locations.

AccessFrac® Stimulation Service

CleanSpacer™ III Spacer Fluid is a biodegradable and ecofriendly fluid designed to reduce
the amount of cementing equipment required on location, thus reducing our environmental
footprint. This spacer fluid combines biopolymers, naturally occurring nontoxic minerals andfresh water, and can be collected and distributed across disposal fields where microorganisms
naturally found in soil degrade the components.
Mature Field Highlights
We provide solutions for customers’ mature fields to optimize reservoir management andlong-term recovery, or to exploit entirely new pay zones by using products that were notavailable when the field was developed.

DecisionSpace® Fractures

DecisionSpace® CasingWear enables operators to understand the extent of potential orexisting damage done to the casing strings inside the wellbore by operations, and to evaluate
the safety of the well design for present and future production operations. Part of our larger
well integrity and mature field management solution, DecisionSpace CasingWear wasdeveloped in close collaboration with our clients.
CoilCommSM Service uses fiber optics to provide real-time, bottomhole data during coiled
tubing well interventions. The high-quality data obtained helps clients maximize well-production
performance and the success rates of interventions, and helps optimize chemical treatments
required to perform the intervention. CoilComm Service delivers crucial information with fewer
trips to the wellsite to take measurements.
DecisionSpace® CasingWear Technology

27

Halliburton 2015 Sustainability Report

Technology & Innovation cont.

2015 Awards

Unconventionals Highlights

World Oil Awards

With unconventionals, our goal is to deliver the lowest cost per barrel of oil equivalent for ourcustomers via subsurface insight, customized chemistry and surface efficiency.

Best Production Technology
AccessFrac® Stimulation Service

Offshore Technology Conference
Spotlight on New Technology
RezConnect™ Well Testing System

Hart Energy’s E&P Meritorious
Awards for Energy Innovation
Hydraulic Fracturing Completions
AccessFrac® Stimulation Service
Formation Evaluation
CoreVault™ System
Drilling Fluids
SaltShield™ Cement
Health, Safety & Environment
Environmentally Distinctive Burner System
Onshore Rig
Buoyancy-Assisted Casing Equipment (BACE™)Louisiana Gulf Coast
Oil Exposition
New Technology Showcase
SaltShield™ Cement

28

AccessFrac® Stimulation Service is the Company’s process for gaining cluster completionand production efficiency in initial completions or refracturing scenarios. AccessFrac Stimulation
Service combines a self-degrading, environmentally benign diverter material with a conductivity
enhancement material to reduce time and cost for multi-zone fracturing. It helps optimize
proppant distribution in complex fracture networks for improved long-term production
performance. AccessFrac Stimulation Service won the 2015 Hart Energy’s E&P Meritorious
Award for Energy Innovation for Hydraulic Fracturing and Completions.
DecisionSpace Unconventionals is a comprehensive suite of applications delivered ona single platform optimized to help operators manage the life cycle of shale plays from
exploration to production. This suite answers questions about the best way to develop shaleplays over their full life cycle, including analytics to determine the “sweet spot,” simulation
to determine the optimal well spacing, and drilling products to efficiently plan wells in thetargeted zones. With DecisionSpace Unconventionals, operators can maximize production
from their asset while minimizing their environmental footprint.
MicroScout™ Service involves the injection of ceramic micro-proppant as part of thehydraulic fracturing process to treat natural and induced secondary micro-fractures before
the placement of larger-sized proppant into primary fractures. Production results fromfield-tested wells treated with MicroScout Service provide 25 to 40 percent improvementof liquids production compared to production from control wells with traditional hydraulicfracturing treatment.

www.halliburton.com

29

Halliburton 2015 Sustainability Report

Global Citizenship50
Our employees completed an average of 50 hoursof training in 2015, a total of over 4 million hours.

20+
There are more than 20 Halliburton Volunteer Councils
worldwide, giving back to their communities.

$6 million
In 2015, the Halliburton Foundation donated $6 million
to the communities where we operate in the form ofscholarships, grants and matching employee giving.

30

www.halliburton.com

We are citizens of a world that begins with our facilities and employees, and extends acrossthe globe to the people, families and communities we do business with. Sustaining our
reputation as a good global citizen is an important component of our long-term success.

Employee Training
million hours

Our Employees

4.60

5.83

4.03

Guiding Principle
Enhance the economic and social well-being of ouremployees and the communities in which we operate

13

14

15

Halliburton successfully grows and leads in our chosen markets for one reason: our people.
We attract and retain the best talent by offering rewarding careers, embracing diversity andmaintaining a positive work environment. We invest in our employees through competitivecompensation plans; health benefits; work-life programs; reward and incentive plans; andcontinual learning, development and growth opportunities. We have the right people to develop
and deliver innovative solutions and superior service quality to the industry – and we value
those people as an unmatched competitive advantage.
Learning, Training and Development
Halliburton employees have access to a variety of technical and non-technical training options
that are shaped and delivered by a team of Learning and Development professionals. With
expertise in all facets of instructional design, this team partners with each business unit tocreate blended training that uses a variety of teaching approaches.
This team also governs and maintains Halliburton University, the Company’s online learning
management system. Halliburton University is a comprehensive system that presents anddocuments career development activities. Employees can determine required role-based
competencies, perform competency assessments, and complete instructor-led and web-based
training courses and other development activities. Through Halliburton University, employees
can identify competency gaps and determine the development they need to advance to thenext career level.
In 2015, Halliburton was again granted full accreditation for our Global Competency Assurance
Program by the International Association of Drilling Contractors, with full competency
accreditation for all positions across all PSLs and support functions globally.
The Company’s global competency process is a systematic method for maintaining workforce
capability; fostering employee development; and documenting the knowledge, skills, behaviors
and experience that employees require for the roles they hold. Our competency process isaligned with customer requirements, industry standards, and applicable laws and regulations.
In an ongoing, multi-year project, role-based competencies have now been established formore than 80 percent of our employee population. Competencies are assigned by employees’
business units, aligned with the activities they execute on their jobs and assessed locallyby qualified raters. Through tracking in our centralized competency system, Halliburton has
demonstrated a strong, positive correlation between documented competencies of theworkforce and key business performance indicators.
Halliburton views employee development as a smart, long-range investment. In addition tothe online courses provided by Halliburton University, our network of training centers offers
employees technical, operational and leadership training in classroom and hands-on workshop
settings. In 2015, employees completed a total of over 4 million hours of training – or 50 hours
per employee. The training delivered at these centers, together with our competency programs,
form the foundation of employee development and fast-track career processes.

31

Halliburton 2015 Sustainability Report

Global Citizenship cont.

Specialized programs that prepare selected employees for leadership roles include theSupply Chain Management Program, Technology Professional Development Program, Human
Resources Leadership Program, and Hire to Country Manager (H2CM) process.
H2CM is a Companywide process that equips exceptional new employees in operational or
technical roles to advance rapidly into key operations management positions. Participants
complete a structured series of career moves, acquiring key competencies, training andon-the-job experience at each step. After completing the H2CM process, the employee has
gained the skills to successfully run operations at the country level and beyond.
Halliburton also offers customized leadership development opportunities for employees alreadyin leadership positions. These include stretch assignments, leadership development plans withcoaching, and training programs developed and facilitated internally. These programs are mapped
to our leadership model and are based on cascading competencies for frontline, operational,transformational and strategic leaders. Formal training courses include: Compensation Essentials,
Crew Leadership, Talent Selection, Succession Management, and Change Leadership.
For employees pursuing a managerial career path and demonstrating high potential for
leadership, Halliburton offers the three-level Business Leadership Development series andthe President’s Leadership Excellence Program in partnership with the Mays School ofBusiness at the Texas A&M University Center for Executive Development. These programs
and related team projects help prepare leaders for positions of increasing responsibility andexecutive-level decision-making.
People, Performance and Results
Each year, all eligible Halliburton employees participate in a global performance management
process that drives business results by aligning individual and corporate performance objectives
across ethics; service quality; financial performance; and health, safety and environment.
Employees and managers determine these goals and perform progress assessments that arelinked to compensation. Employees also work with their managers to create developmental
goals based on current position and career objectives. We provide leaders with guidance on
performance management, feedback and coaching to help them build a high-performanceorganizational culture.
Succession Management
The Company’s annual succession management process is a proven method for assessing
the skills, talent and potential of employees, with the aim to identify, develop and maintaina reliable succession of skilled leaders. The process targets top talent for accelerated
development within the Company, and helps the organization pinpoint possible gaps inindividuals’ skill sets or experience. Managers complete online leadership assessments
and replacement charts for their direct reports. Employees complete and maintain a TalentProfile, which includes the employee’s work and educational experiences, strengths andaccomplishments, as well as their career interests and aspirations, both short- and long-term.
It is a valuable tool that empowers employees to take charge of their careers.

32

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Employee Programs

Diversity Awards

Halliburton is dedicated to the overall well-being of its employees. In addition to providing asafe work environment and comprehensive employee benefits, we offer programs that help
employees cope constructively with well-being issues that arise at work and in their personal
lives. These include:• Halliburton received Diversity Leader Award –•••Dispute Resolution Program
Employee Assistance Program
Employee Wellness Program

Rewarding Innovation and Excellence
Maximizing Value-added Performance (MVP) awards recognize outstanding achievement
by individuals or teams. These awards emphasize efforts that benefit the Company and its
stakeholders. A total of 4,812 MVP awards, worth more than $4 million, were made in 2015.
Diversity and Inclusion
Hiring and retaining diverse talent is a business imperative. A key focus of our efforts has
been on increasing gender diversity by creating an environment that supports the hiring andretention of women. We have made significant strides toward this goal, and we continue
our progress through a variety of programs. Notable achievements have been made in
our Technology organization, where the female workforce has increased by 6 percentage
points in the three years ending 2015, as discussed on page 25. We are also committed tofostering diversity and inclusion through hiring and developing minority employees acrossour global organization.
We encourage a global culture of inclusion with an ongoing internal campaign highlighting
the value of differing perspectives. For example, our global leadership team is required tocomplete our web-based training, “Diversity and Inclusion for Managers and Supervisors,”
which is designed to help leaders educate their teams on diversity and inclusion.

Profiles in Diversity Journal• Halliburton named a Top 50 Employer by Woman

Engineer magazine• Halliburton was inducted into the prestigious

Heritage Club by the Society of Women Engineers• Myrtle Jones, senior vice president of Tax, named

Multicultural Leader of the Year by the National
Diversity Council• Cindy Patman, senior director of Corporate Affairs
and Diversity Initiatives, named by Profiles in Diversity
Journal as one of its “Women Worth Watching”• Heba Filobbos, senior area manager of Completion
Tools in Scandinavia, named to the “Top 10 Diversity
Champions’ List” by the Global Diversity List,
sponsored by The Economist

Diversity Events• Global Women’s Leadership speaker series• Society of Women Engineers National Conference

and 15 campus events across the U.S.
• Catalyst speaker panel

Diversity Partnerships• Catalyst Inc. – Global• Women’s Energy Network – U.S.
• Women in Science and Engineering (WISE) – U.K.
• Society of Women Engineers (Corporate PartnershipCouncil Board member) – U.S.
• National Diversity Council – U.S.
• Pink Petro – Global

Selected high-potential female employees, primarily from operations, engineering, geoscienceand technology, also work with management-level mentors who foster their career development.
The Diversity and Inclusion team works with global human asset managers to help these
employees complete robust leadership-development plans.
Affinity Groups
Women Sharing Excellence (WSE) is an internal diversity network dedicated to promoting
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 and self-development through mentoring,training, community-service events, spotlight recognition and a workplace conversation series.
Halliburton African American Network Forum (HAANF) is an affinity group dedicated tosupporting the Company’s diverse workforce through networking, mentoring and promoting
professional growth. HAANF’s mission is to educate, motivate and empower its members.
Participants engage in community service events and lead career development workshops.
Although HAANF comprises primarily African-American employees, the organization is open
to all employees who seek to cultivate a diverse environment that provides opportunities foradvancement, success and growth.

33

Halliburton 2015 Sustainability Report

Global Citizenship cont.

Halliburton Charity Golf Tournament
The 22nd annual Halliburton Charity Golf
Tournament raised a record amount of morethan $3 million for 43 nonprofit organizations
across the U.S. The tournament has donatedalmost $14 million to charities over its
22-year history.
The success of the event in Houston has led
to the establishment of a second event in San
Antonio, Texas. In its first year, this tournament
raised $64,000 for 11 charities.

iMPACT is an organization of Halliburton professionals with the primary objective of furthering
employee development, enhancing leadership competencies and increasing employee retention.
iMPACT membership is now available to all Halliburton professionals.
Veterans Leadership Forum (VLF) provides tools and opportunities for professional
development to maximize veterans’ contributions to helping Halliburton achieve its goals.
Started by and for veterans in 2013, VLF membership is open to all Halliburton employees
who seek to enhance their careers.
Enhanced Partnerships and Diversity Events
Halliburton participated in more than 30 global diversity events at pre-college, college andprofessional levels to promote women and minorities. As a member of the Society of WomenEngineers’ Corporate Partnership Council, the Company took part in the organization’s 2015
national convention and was nominated into its select Heritage Club.

Our Communities
Enhancing the economic and social well-being of the communities in which we operate isamong our most enduring principles: Founder Erle P. Halliburton established a heritage of
positive community impact through generous support for local charities and causes in his
community. Today, the Company creates opportunities to benefit the communities where
we live and work. Our commitment to good corporate citizenship is fundamental to creating
sustained value for our Company, our stakeholders and the world.
Halliburton community work is centered on our four Pillars of Giving: education, environment,
health and safety, and social service.
In-Kind Donations

2015 Charitable Giving$1,228,000
Halliburton Corporate Giving$6,139,000
Halliburton Foundation$3,000,000
Halliburton Charity Golf Tournament

Through our Landmark PSL, Halliburton made in-kind donations of software valued at almost$3.5 billion to schools and universities during 2015. The software gifts are used as learning andteaching aids, helping engineering and geosciences students learn about new and emerging
technologies in the energy industry.
Halliburton Foundation
Established in 1965, the Halliburton Foundation is a nonprofit organization that promotes
education and charitable purposes, and supports education at all levels. The foundation provides
direct grants, scholarships and match funding for employee educational donations. In 2015, theHalliburton Foundation contributed $6 million to schools and higher education institutions.

$3,377,000
Employee Giving (Giving Choices)$3,477,149,000
Landmark In-Kind Donations$3,490,893,000
Total

34

www.halliburton.com

Pillars of Giving

Education

Environment

Health and Safety

Social Service

Our focus areas within education
are energy education, literacy, andprimary and secondary schools.

Environmental sustainability
and the preservation of natural
resources are of utmost importanceto Halliburton, and are a focus of
our community investment.

Healthy living, hospitals anddisease are all included in this pillar.
We focus primarily on organizations
and foundations related to theillnesses and diseases that affectthe highest percentages of ouremployees and their families.

This pillar encompasses community
well-being, hunger relief and support
for U.S. military veterans.

Hope Primary School: A highlight of
our efforts in education this year was
our ongoing relationship with theHalliburton Hope Primary Schoolin central China. Since contributing
to the restoration of the schoolin 2009–10, we have maintained
contact and, in 2015, Halliburton
volunteers raised $7,500 to support
the school and gave their time to givescientific talks to students.

Norway litter clean up: Halliburton
volunteers in Tananger, Norway,
demonstrated their commitment
to the environment and theircommunity by taking part in a highly
successful litter clean-up operation
across the city.

Houston Heart Walk: As part ofour commitment to the healthand well-being of our people andcommunities, Halliburton employees
and their families and friends once
again walked and donated in supportof the Houston Heart & Stroke Walk,
raising more than $175,000 for theAmerican Heart Association.

Houston Food Bank: Halliburton
volunteers and their families spent a
day volunteering at the Houston Food
Bank, directly impacting community
well-being and hunger relief.

Employee Giving
Through the annual Giving Choices program, employees can donate to selected charities, alignedwith the Halliburton Pillars of Giving. During 2015, the Company provided a percentage match
for all donations and paid all administrative costs. Employees in 17 participating countries pledged
almost $3.4 million to assist their local communities.

Employees: Percentage ofLocal Nationals in Workforce

Employee Volunteerism

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

Through our Community Relations web page, employees can join volunteer opportunities intheir area or initiate projects and build volunteer teams. Employees have donated thousandsof volunteer hours to support hundreds of local initiatives. More than 20 volunteer councils
around the world serve and meet the needs of their unique communities while following theHalliburton Pillars of Giving.

12

13

14

15

99%
94%
88%
72%

99%
93%
88%
72%

99%
93%
88%
72%

99%
93%
88%
72%

Employees: Percentage ofTotal Workforce
North America
Latin America
Europe/Africa/CIS
Middle East/Asia

12

13

14

15

50%
15%
18%
17%

48%
14%
19%
19%

49%
13%
19%
19%

42%
14%
22%
22%

Business Leadership
Development Courses
Number of Attendees			Year

Level I
Attendees

Level II
Attendees

Level III
Attendees

2012
2013
2014
2015

597
762
871
879

225
289
319
351

48
82
88
90

35

Halliburton 2015 Sustainability Report

Transparency

86,000Halliburton discloses approximately 86,000 safety
data sheets in 21 languages.

14
Our Code of Business Conduct is publicly available
in 14 languages.

13
Investor Relations and executives participated in
13 major shareholder events in 2015.

36www.halliburton.com

Guiding Principle
Be transparent in reporting and validating our progressHalliburton is committed to providing our stakeholders with timely information on our progressin all areas. This is achieved through our formal reporting, including this report, and throughour engagement with shareholders, industry groups and the public.

Our chief ethics and compliance officer, Enterprise Risk Management group and Internal
Assurance Services group report to the board of directors to ensure that they have accurate
and timely information on which to act. In relation to sustainability, the Company’s HSE
and Sustainable Development (SD) Executive Committee and the board of directors’ HSE
Committee perform this function. Key elements of our transparency efforts are detailed below.
Shareholder Engagement
Engaging constructively with our shareholders is of great importance to Halliburton. Senior
management, our Investor Relations team and operational managers hold regular meetingsand conference calls with analysts, institutional investors and others as an integral part of theCompany’s commitment to transparency and engagement with the investment community.
In addition, we participate prominently in major industry-related events throughout the year.
The following are 2015 events in which Halliburton executives made presentations, participatedin panels, or had other key roles:
•
•
•
•
•
•
•
•
•
•
•
•
•

Credit Suisse Energy Summit
Iberia 2015 ICP Conference
Morgan Stanley E&P and Oil Services Conference
Citi Global Energy & Utilities Conference
UBS Global Oil & Gas Conference
RBC Capital Markets Global Energy & Power Executive Conference
TPH Summer Energy Conference
JP Morgan Sixth Annual Oil & Gas 1x1 Forum
Simmons European Energy Conference
Barclays CEO Energy-Power Conference
Johnson Rice Energy Conference
Jefferies Global Energy Conference
Wells Fargo Energy Symposium

Our engagement with the investment community received recognition from Institutional
Investor magazine in its 2016 All-American Executive Team rankings. The magazine ranked
the Halliburton Investor Relations team top in the Oil and Gas Services sector. Individually,
Dave Lesar, Christian Garcia and Kelly Youngblood each received top rankings for Best CEO,Best CFO and Best Investor Relations Professional, respectively.
Ethics and Board of Directors OversightHalliburton individuals or Company groups that report regularly to the board of directors
and/or to its committees are the chief accounting officer; the chief ethics and complianceofficer; the general counsel; Enterprise Risk Management; the treasurer; Internal Assurance
Services; HSE; Law; Tax; Corporate Development; and operations leadership. The chief ethics
and compliance officer makes an annual report to the board’s Audit Committee on issues
related to ethics and the COBC. The Audit Committee is also informed of any fraud that has
been uncovered involving $50,000 or more.

37

Halliburton 2015 Sustainability Report

Transparency cont.

Ethics Helpline and Website
Our employees are empowered to report any illegal activity or violation of the COBC –either observed or suspected. The Company provides an Ethics Helpline administered byan independent third party and available 24 hours a day, seven days a week, 365 days a year,
in multiple languages. Callers may choose to report anonymously. The information provided
is forwarded to the Halliburton COBC Practice Group for review and appropriate action.
Employees and the public can contact the Halliburton board of directors by using a toll-freephone number, or a mailing address or email address provided on the Company’s website.
All complaints and concerns are received and processed by the COBC group and are referred
to either the board’s Audit Committee or the board’s lead director, as appropriate. The COBC
is described in more detail on page 11.
Internal Assurance Services
Internal Assurance Services provides assurance and insight on the management system ofcontrol. The function has responsibility for audits of financial controls, corporate, service quality
and HSE. The independent internal audit is a critical part of our tiered inspection process for
HSE and Service Quality, as discussed on page 19. The consolidation of the Company’s
assurance activities to an independent function within the organization is another important
indicator of the Company’s commitment to quality in all areas in which we work.
A risk-based approach is used to develop the audit plan and define audit scope. Audit outcomesare finalized in a formal report, and actions are required to address reported audit observations.
Audit findings, trends and insights are reported within the organization and to board committees,
as applicable.
HSE and Sustainable Development Executive Committee
The Company’s president is chief HSE officer and head of the HSE and Sustainable Development
Executive Committee, and reports to each meeting of the board of directors’ HSE Committee.
The HSE and SD Executive Committee is charged with oversight of HSE and SD matters,
including annual strategies, HSE statistics, the HSE audit program, and liaison with the boardof directors’ HSE Committee. Any significant HSE incidents are examined by the committee,
with particular attention to violations of laws or regulations, or of the COBC. The committee
may request further information or call on individuals involved to provide additional detail, andmay recommend follow-up actions.

38

www.halliburton.com

Chemical Transparency
Halliburton publicly discloses information about the chemical substances used in its
operations, providing a valued resource for customers, employees, regulators and thecommunities where we operate. We publish safety data sheets (SDSs) for all our productlines, including products used in hydraulic fracturing. SDSs communicate detailed information
about the safe use, chemical substance management and potential hazards of our products.
In addition, for all our chemical products, Halliburton is updating thousands of SDSs to the
GHS standard. All current SDSs are available to download from our website.
The Company’s website holds approximately 86,000 chemical documents. Of these,
approximately 65,000 are Halliburton SDSs available in 30 languages. There are also
approximately 21,000 vendor-supplied SDSs in 21 languages. Halliburton continues to invest
in the systems, processes and infrastructure that support our commitment to chemicaltransparency. This investment fuels our continuous improvement in providing market-leading
products and information to all our stakeholders.
The other key element of our commitment to chemical transparency is the Halliburton
Chemistry Scoring Index, discussed on pages 18 and 19.
Global Reporting Initiative
The Global Reporting Initiative (GRI) is the primary globally recognized framework forsustainability reporting. We have adopted the GRI G4 framework as set out in the index
at the end of this document. The adoption of the GRI framework validates our reporting
practices and helps us to continually improve reporting and transparency.

39

Halliburton 2015 Sustainability Report

Collaboration$1.2 billion
Our total spend with small and diverse
suppliers in the U.S. was $1.2 billion in 2015.

Six years
Industry-leading score in Human Capital
Development in the DJSI for the sixth
consecutive year.

50+
We collaborated with customers on more than
50 research and development projects in 2015,
innovating to meet their specific needs.

40

www.halliburton.com

Guiding Principle
Engage our stakeholders to help achieve results that arecompatible with our stated principles

We work closely with our partners across the value chain to deliver sustainable highperformance to our key stakeholders. Collaboration with suppliers, customers, industry
partners, employees and technology partners, as well as active public and community
engagement, are integral to our ability to deliver long-term financial, environmental andsocial value to our stakeholders.

Supply Chain Engagement
Halliburton Supply Chain comprises Procurement, Materials, Manufacturing and Logistics.
Supply Chain manages a global network of suppliers, warehouses and cross docks, and has
22 manufacturing facilities around the world.
We engage with our suppliers to ensure that they meet our standards and to build capacity,
provide training and foster a diverse supplier base.
Halliburton requires suppliers to comply with all applicable global and local laws and regulations
governing business conduct, labor, wages, hours, equal opportunity, human rights and otherconditions of employment, the environment, and safety. Suppliers must also follow theHalliburton Code of Business Conduct, which requires compliance with all applicable laws,
and states that suppliers must conduct business in a fair manner with honesty and integrity,
observing high standards of personal and business ethics.
Potential suppliers to Halliburton undergo a risk evaluation process, including Export Controls
and Sanctions screening. Depending on the products or services provided to Halliburton,
suppliers are also evaluated on quality, HSE and other financial requirements. Potential andcurrent suppliers must also provide conflict minerals information on any product they supply.
As a member of the Customs-Trade Partnership Against Terrorism (C-TPAT), Halliburton
works with U.S. Customs and Border Protection to identify potential security gaps within our
supply chain and proactively implement security best practices. Inspections are performed by
our Global Supplier Quality group, and all Halliburton sites and vendor facilities are subject todetailed security inspections by U.S. Customs. Halliburton also participates in the Importer
Self-Assessment program, which encourages companies to share the responsibility forcompliance with trade laws and regulations. Voluntary participation by Halliburton and its
suppliers demonstrates our strong commitment to border security for the U.S. and its neighbors.
Like Halliburton, suppliers must be committed to getting parts and services right the firsttime and continuously improving quality, on-time delivery and value. Suppliers are expected
to meet Halliburton’s requirements and to support continuous improvement efforts throughstandardized quality processes and procedures, and are subject to quality and billing audits.
Suppliers that provide services on Company facilities or customer property must comply
with Halliburton HSE standards. Suppliers are also selected for performance evaluation andreview, and are evaluated against key performance indicators using a supplier scorecard.
The scorecard measures suppliers on Halliburton’s core values including financial performance,
operational performance, HSE and global citizenship, collaboration and transparency, andtechnology and innovation.

41

Halliburton 2015 Sustainability Report

Collaboration cont.

Local Content and Supplier Diversity
Halliburton tailors sourcing efforts with local suppliers to reflect the governmental, culturaland economic development needs of each country in which we operate. The Company’s
local teams focus on sourcing suppliers that can provide a strategic and competitive advantage
to local operations while also growing the capacity and competency of national andlocal industry suppliers. The local Supply Chain teams focus on improving the suppliers’
competitiveness in terms of quality, price, schedule of delivery, compliance and risk. Over80 percent of the Company’s regional field operations’ spend comes from suppliers withlocations within the region.
Halliburton also supports small, minority-owned and women-owned businesses. A diverse
network of suppliers improves our supply chain, allowing us to better manage our business andcontribute to our communities. We support our customers by providing reports on second-tierdiverse suppliers to help show the economic impact in the local community. Prime suppliers
are also encouraged to build diverse relationships because, by subcontracting work to diverse
suppliers, they provide added value to Halliburton.
Local supply chain teams are integral in developing and expanding supplier relationships.
These relationships allow our suppliers to grow with Halliburton and create solutions that are
beneficial to the supplier and our customers.
Examples of our supply chain engagement in 2015 include:
•

•

•

•

•

•

•

42

Continued expansion and establishment of new supply chain infrastructures in remote areas,such as expansion into Senegal
Collaboration with suppliers in the U.S. and Latin America to streamline direct material
shipments to wellsites
Growing our supply base capabilities in emerging markets in manufacturing, assembly andproduct development
Supplier training and workshops on HSE, quality, Code of Business Conduct and otherindustry topics included:– Regional supplier events in London and Johannesburg on strategy and business outlook,
and adding value through efficiencies and process optimization– Supplier events on HSE and service quality, and supplier awards ceremonies in Indonesia
and Malaysia– Education and training on quality and HSE, including Halliburton quality standards, quality
tools, and Lean Six Sigma for suppliers in India– Supplier events on COBC, HSE and quality in Brazil and Colombia– Our Colombia organization is also partnering with customers to develop a local supplierbase by providing procurement process training
Development of local pump, casing equipment and capital equipment processes for
suppliers in Latin America to manufacture and assemble parts, as well as supply fuel in
unconventional operations
Partnership with a customer in Timor Leste to increase spend with local vendors and toprovide training at Halliburton facilities for local petroleum graduates
Implementation of the Halliburton Certified Quality Representative program, providing
training, on-the-job coaching, evaluation and certification at key supplier locations in China
and India

www.halliburton.com

Customer Engagement
Each of the Company’s major customer accounts has an assigned global account manager
who is responsible for fostering a strong, productive business relationship. The global accountmanager develops strategies; manages conflict and contract negotiations; facilitates thedevelopment and implementation of new technologies; and handles communication between
Halliburton and the customer organization.
We also partner with customers on collaborative HSE and service quality programs, driving
continuous improvement in service delivery and execution.
Employee Engagement
Employee engagement is crucial to the Company’s success. A key factor in fostering employee
engagement is supporting employees in enhancing professional growth and building theircareers with succession planning, leadership development plans and specialized leadershipprograms to open doors for high-potential employees. As a result of these exceptional
employee development efforts, Halliburton was recognized again this year by the Dow Jones
Sustainability Indices, which ranked Halliburton first in its sector in the category “Human
Capital Development.”
Employees are engaged more broadly in the Company’s strategic success through Halliburton
Academy, an annual, week-long event that brings together approximately 1,000 employees– rising stars as well as long-time employees – from across the globe. Participants receive
intensive training on new technologies; marketing and sales training; and strategy briefings
from executive leadership. At the end of the week, attendees are responsible for taking theinformation back to their teams at home.
On a more personal basis, we urge employees to regard themselves as the face ofHalliburton in their local communities. Employees connect with their neighbors on behalf of
the Company through hundreds of community projects every year. Halliburton supports
employee volunteerism globally, as discussed in the Global Citizenship section of this report.
Industry Engagement
Halliburton engages with the industry and with technology leaders to forge relationships that
promote the advancement of science and technology. Halliburton employees and executives
speak at conferences; publish thought-leadership articles in technical journals, the trade press,
general publications and online; and contribute to industry groups.

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Halliburton 2015 Sustainability Report

Collaboration cont.

The Company’s 2015 memberships included:
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•

Bilateral U.S.-Arab Chamber of CommerceGreater Houston Partnership
Texas Independent Producers and Royalty Owners Association
National Petroleum Council
National Association of Manufacturers
Western Energy Alliance
Colorado Oil and Gas Association
National Foreign Trade Council (U.S.)
U.S. Oil and Gas Association
Independent Petroleum Association of America
Houston World Affairs Council
Petroleum Equipment Suppliers Association
Society of Petroleum Engineers
American Petroleum Institute
U.S.– ASEAN Business Council

Halliburton is well represented on standard-setting bodies and those guiding industry bestpractice. For example, Halliburton serves on the board of directors of the Center for Offshore
Safety, which includes representatives from operators, service companies, governmental
agencies and industry associations. Halliburton employees also regularly participate on API
committees charged with developing recommended practices and standards for explorationand production. In particular, we were central to the development of API Q2, an international
standard that outlines fundamental requirements for quality management systems critical to
upstream operations, and we have been at the forefront of its implementation. Our API Q2
certifications are discussed in the HSE section of this report on page 18.
Public Engagement
Working with legislators and regulators, and with the public, Halliburton makes available
in-depth information on all aspects of our operations. The Company maintains a consistentdialogue with mainstream, financial and trade press to inform key external constituencies on
significant aspects of our operations and our sustainability efforts.
For example, Halliburton representatives have been involved in the policy discussions
surrounding the development of shale gas and oil resources in the U.S., Canada, Europe,
Australia and South Africa. We have undertaken outreach with numerous groups and officials
around the globe to examine advanced technologies and regulatory standards.

44

www.halliburton.com

Environmental & Social Data

		
2015
2014

Environmental Data
Energy Consumption (GJ)
Fuel consumption		

Diesel 		

41,711,467 				

Coal 		

956,470		

1,217,347

		Natural Gas 		

842,909		

1,023,367

		Other		

159,794,415

223,294		

27,049

Electricity Consumption 		

1,786,346 		

1,860,310

Total		

45,520,486 		

163,922,488

Direct (Scope 1) 		

3,210,371 		

11,438,905

Indirect (Scope 2) 		

286,465 		

299,382

Total 		3,496,836 		

11,738,287

148 		

357

Non-hazardous 		

756,011 		

48,193

Hazardous		

58,497 		

4,087

Total 		814,508 		

52,280Total Recycled 		

667,081

Total Landfill 		

85,851

Composting 		

25,293

Total Energy Recovery 		

19,118

Greenhouse gas emissions (TCO2e)

Greenhouse gas emissions intensity (TCO2e/$M revenue)
Scope 1 and Scope 2 		Waste disposal (Metric tonnes)

Deep Well Injection 		

8,016

Incineration 		

4,921

On-site Storage 		

2,140

Total Reuse 		

2,077

Other 		Total 		

11814,508				

Water consumption (m3)
Total		 2,036,049		 2,179,200
Spills and discharges
REIR (Incidents per 200,000 hours worked) 		

0.03 		

0.05

Total volume of spills (m3) 		

482 		

631

Social Data
Fatalities				
Employee 		

1 		

3

Contractor 		

1 		

2

Total 		2 		

5Injuries and process safety incidents
LTIR (Incidents per 200,000 hours worked) 		

0.10 		

0.13

TRIR (Incidents per 200,000 hours worked) 		

0.40 		

0.49

RVIR (Incidents per million miles traveled) 		

0.39 		

0.41

In-kind Donations 		

3,477,149 		

3,106,399

Halliburton Foundation 		

6,139 		3,900Employee Giving 		

3,377 		3,218Halliburton Charity Golf Tournament 		

3,000 		2,400Charitable giving ($’000)

Corporate Giving 		

1,228 		1,840Total		

3,490,893 		

3,117,757

1,157,750 		

1,906,855

143 		

149

Procurement ($’000)
Spend with small and diverse suppliers 		
Business Ethics
Code of Business Conduct reports 		

45

Halliburton 2015 Sustainability ReportGRI G4 Content Index		2015 CSR Reference
Page Number

Strategy and Analysis
G4–1

CEO Statement

G4–2

Provide a description of the key impacts, risks and opportunities

Organizational Profile●

P. 2–3P. 2–5, 10–13

G4–3

Name of the organization

●

P. 4

G4–4

Primary brands, products and services 		

●

P. 4

G4–5

Location of the organization’s headquarters 		

●

IBC

G4–6

Countries of operations

●

P. 4

G4–7

Nature of ownership and legal form

●

IBC

G4–8

Markets served

●

P. 4

G4–9

Scale of reporting organization

●

P. 4

G4–10

Employee headcount data

G4–11

Percentage of employees covered by collective bargaining agreements

●

P. 12

G4–12

Supply chain description		

●

P. 41

G4–13

Significant changes during the reporting period 		

●

IBC

G4–14

Report whether and how the precautionary approach or principle is addressed by the organization 		●

P. 5, 8–9, 17

G4–15

Externally developed economic, environmental and social charters, principles and other initiatives 		

G4–16

Association memberships 		



P. 4



P. 39, 43–44●

P. 43–44

IBC

Identified Material Aspects and Boundaries
G4–17

Entities included in the organization’s consolidated financial statements

●

G4–18

Process for defining the report content and the Aspect Boundaries

●

IBC

G4–19

Material aspects identified

●

5–6

G4–20

Aspect boundary within the organization

●

IBC

G4–21

Aspect boundary outside the organization

●

IBC

G4–22

Effect of restatements●

20, IBC

G4–23

Significant changes from previous reporting periods●

IBC

Stakeholder Engagement
G4–24

Stakeholder groups engaged by the organization●

P. 36–44

G4–25

Basis for identification and selection of stakeholders with whom to engage

●

G4–26

Approaches to stakeholder engagement

G4–27

Key topics and concerns that have been raised through stakeholder experience

P. 36–44●

P. 36–44

P. 36–44

Report Profile
G4–28

Reporting period

●

IBC

G4–29

Date of previous report

●

IBC

G4–30

Reporting cycle

●

IBC

G4–31

Contact point for questions regarding the report

●

IBC

G4–32

In accordance option chosen

●

IBC

G4–33

External Assurance

●

IBC

46

www.halliburton.com

		2015 CSR Reference
Page Number

Governance, Commitments and Engagement
G4–34

Governance structure of the organization 		

●

P. 10

G4–35

Process for delegating authority for economic, environmental and social topics●

P. 10–13, 38
P. 38

G4–36

Appointment of an executive-level position with responsibility for economic, environmental and social topics

●

G4–37

Processes for consultation between stakeholders and the highest governance body to the highest governance body 		

●

P. 11

G4–38

Composition of the highest governance body and its committees●

P. 10–11

G4–39

Report whether the Chair of the highest governance body is also an executive officer

●

P. 10

G4–40

Nomination and selection processes for the highest governance body and its committees 		●P. 10–11

G4–41

Conflicts of interest 		●P. 10–11

G4–42

Development, approval, and updating of the organization’s purpose, value or mission statements, strategies, policies,●

P. 5, 10–11, 38
P. 10–11

and goals related to economic, environmental and social impacts 		
G4–43

Measures taken to develop and enhance the highest governance body’s collective knowledge of economic,
environmental and social topics 		

●

G4–44

Processes for evaluating the board’s performance●

P. 10–11

G4–45

Board’s role in the identification and management of economic, environmental and social impacts, risks, and opportunities●

P. 5, 10–11, 38

G4–46

Board’s role in reviewing the effectiveness of the organization’s risk management processes for economic,
P. 10–11, 38

environmental and social topics 		

●

G4–47

Frequency of the board’s review of economic, environmental and social impacts, risks, and opportunities 		

●

P. 10

G4–48

Reviews and approval of the sustainability report 		

●

P. 38
P. 10–11

G4–49

Process for communicating critical concerns to the highest governance body		

●

G4–51

Remuneration policies for the board and senior executives 		

●

P. 11

G4–52

Process for determining remuneration for the board and senior executives		

●

P. 11

Ethics and Integrity
G4–56

Values, principles, standards and norms of behavior●

P. 11–13

G4–57

Internal and external mechanisms for seeking advice on ethical and lawful behavior●

P. 11–13, 37–38

G4–58

Internal and external mechanisms for reporting concerns about unethical or unlawful behavior●

P. 11–13, 37–38

●

P. 14–15



●

P. 45

●

P. 20

Specific Standard Disclosures
Economic
G4–EC1

Direct Economic Value generated

G4–EC9Proportion of spending on local suppliers

Environmental

P. 42

G4–EN3

Energy consumption		

G4–EN8

Total water withdrawal

G4–EN15

Direct greenhouse gas emissions (Scope 1)

G4–EN16

Indirect greenhouse gas emissions (Scope 2)

●

P. 20

G4–EN18

Greenhouse gas emissions intensity

●

P. 20

G4–EN19

Reduction of greenhouse gas emissions

●

P. 20

G4–EN23

Total weight of waste by type and disposal method●

P. 21, 45

G4–EN24

Total number and volume of significant spills

●

P. 21

G4–EN27

Initiatives to mitigate environmental impacts of products and services●

P. 16–23, 25–29, 41–42

P. 45

Labor Rights
G4–LA6

Rates of injury, occupational diseases, lost days, fatalities

G4–LA9Average hours of training per year per employee by gender, and by employee category

G4–LA10Programs for skills management and lifelong learning

G4–LA11Percentage of employees receiving regular performance and career development reviews		●

P. 16–22
P. 31–32
P. 31–32

●

P. 32

●

P. 13

●

P. 10–13, 38

Human Rights
G4–HR7

Security personnel trained in the organization’s human rights policies

Society
G4–SO4

Communication and training on anti-corruption policies and procedures

G4–SO8

Monetary value of fines and penalties

 = Yes = Partial



P. 22

IBC = inside back cover47

Halliburton 2015 Sustainability Report48

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Report Information

Halliburton is a publicly traded corporation registered in Delaware and headquartered in
Houston, Texas. There were no significant changes to the structure or ownership of theCompany in 2015.
In this report, only the financial data encompasses all of our product service lines, countries,
joint ventures and non-wholly-owned subsidiaries.
This report contains descriptions of our 2015 sustainability initiatives. Wherever possible,
assessments of performance trends from 2013 to 2015 are provided to better highlight thetrends’ significance over time. Topics covered in this report are those most pertinent to ourbusiness sector, and they arise from the context and expectations of the sector. Our analysisof the materiality of topics is described on page 5.
The boundaries of this report correspond to those of the 2015 Halliburton Annual Report.
The data included in this report come from the Company’s official management and reporting
systems for the various functions described in this document. No external assurance has beensought for the contents of this report.
The 2015 Corporate Sustainability Report was drafted in accordance with the Core Requirementsof the Reporting Guidelines of the Global Reporting Initiative, version G4.

Previous Reports
Big Vision
Calendar Year 2014
What Moves Us
Calendar Year 2013
Look Beneath the Surface
Calendar Year 2012
Integrating Sustainability –Expanding Our Commitment
Calendar Year 2011
Sustainability is in Our DNA
Calendar Year 2010
Report Parameters
Reporting period:
Calendar Year 2015
Published date of previous report:
March 2015
Reporting cycle: Annual
Printed on FSC-certified paper that
contains post-consumer recovered fiber.
FSC certification ensures that this paper
meets Forest Stewardship Council standards
for responsible forest management.
For More Information
For additional copies,
please contact:
Global Manager of Sustainability
Global HSE & Service Quality
Plaza 13000 N. Sam Houston Parkway E
Houston, Texas 77032
United States
Email:
sustainability@halliburton.com

2015 Sustainability Report© 2016 Halliburton. All Rights Reserved.
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