SUSTAINABILITYREPORT2017

2 Our Company
Letter to Stakeholders
About Halliburton
Sustainability at Halliburton
Our Guiding Principles
Journey to ZERO
Technology and Innovation

Contents

16

24

Economic
Corporate Governance andBusiness Ethics
Economic Performance
Supply Chain Sustainability

30

Social17
20
22

Diversity and Inclusion
Community Engagement
Health, Safety and Wellness

2
3
4
6
8
12

Environment
25
26
29

Energy and Greenhouse Gases
Environmental Stewardship31
32

34 Data Index
Environmental and Social DataGRI G4 Content Index
UN Sustainable Development Goals

HALLIBURTON 2017 SUSTAINABILITY REPORT

34
35
36

1

To Our Stakeholders
The expected turnaround in the oil and gas industry is underway. Halliburton has
capitalized on the improving market while positioning itself for ongoing success as therecovery continues. Close attention to sustainability throughout our business has enabled
us to achieve these dual goals.
Our value proposition – to collaborate and engineer solutions that maximize value forour customers – has helped us “win the recovery” with impressive results. We are aheadof our peers in delivering leading returns to shareholders. Perhaps most notably, we haveoutperformed competitors on market share, retaining leadership in North America andgrowing our market share internationally.
CONTINUOUS IMPROVEMENT THROUGHOUT THE VALUE CHAIN

Jeffrey A. Miller
President and Chief Executive Ofﬁcer

David J. Lesar
Executive Chairman of the Board

Christopher T. Weber
Executive Vice President and Chief Financial Ofﬁcer

Our sustainability efforts reﬂect our success in managing our performance across ourvalue chain. For example, we emphasize sustainability by working with local suppliers,and helping them build their capabilities in health, safety, environmental management
and service quality. Our commitment to sustainable economic development makes our
supply chain more resilient. Sustainability is also integral to our process for innovation.
Every new technology seeks to minimize social and environmental impacts while
delivering value for our customers.
OUR PEOPLE ARE OUR DIFFERENCE

Halliburton is the execution company. Excellence begins with superior products
and equipment, but it is delivered by our people. That is why we offer a structured
development program to help them build skills and competencies. Most importantly,
every employee is held responsible for the Halliburton safety culture, resulting in a
ﬁve-year upward trend in health and safety performance.
CONNECTING WITH OUR COMMUNITIES WORLDWIDE

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

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

Eric J. Carre
Executive Vice President, Global Business Lines andChief Health, Safety and Environment Ofﬁcer

James S. Brown
President, Western Hemisphere

Joe D. Rainey
President, Eastern Hemisphere

2

Halliburton has a longstanding tradition of enhancing the lives of our local
communities. Perhaps the most dramatic demonstration of that commitment in 2017
was right in our hometown.
The world watched as Hurricane Harvey devastated Houston, leaving whole
neighborhoods under water and thousands of families ﬂooded out of their homes.
Halliburton was right there, helping with evacuations, providing emergency food andsupplies, and supporting employees and their families through the process of getting
short- and long-term assistance.
THE VIEW FORWARD

As 2018 unfolds, Halliburton will be led by President and CEO Jeff Miller, who was elected
unanimously by the Board of Directors in May 2017. Dave Lesar will serve as executive
chairman, continuing to bring his experience, talent and insight to the Company.
The overall Halliburton strategy, including our sustainability strategy, has proven its
durability through several years of a challenging market. By building on our proven success,we look forward to making the most of a strengthening market in 2018 and beyond.

About Halliburton
Founded in 1919, Halliburton is one of the world’s largest providers of products
and services to the energy industry. With approximately 55,000 employees,
representing 140 nationalities in approximately 70 countries, the Company helps
its customers maximize value throughout the lifecycle of the reservoir – from locatinghydrocarbons and managing geological data, to drilling and formation evaluation,
well construction and completion, and optimizing production throughout the lifeof the asset.
OUR BUSINESSHalliburton 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 and spearheads our integrated-services
strategy. Its ﬁnancial results are included in the Drilling and Evaluation division. PSLs areprimarily responsible and accountable for strategy, technology development, processdevelopment, people development and capital allocation.
TWO DIVISIONS

Drilling and Evaluation Division

Completion and Production Division• Baroid• Artiﬁcial Lift

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

Supporting Both Divisions• Consulting and Project Management

HALLIBURTON 2017 SUSTAINABILITY REPORT

3

Sustainability at
Halliburton
Halliburton embeds sustainability
and responsible corporate citizenshipwithin our overall strategy through our
Guiding Principles for Sustainability.
These principles align with Halliburton
values and rest on a foundation of ethics
and integrity.

•

Competition: We compete to win.
We know that competition makes
everyone stronger.

•

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

•

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

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

MISSION, VISION AND VALUESAt Halliburton, we collaborate and engineer
solutions to maximize asset value for ourcustomers – this is our value proposition.
Our mission identiﬁes what we do today,
why we do it and for whom. Our visiondeﬁnes what we aspire to be and what
success will look like.
MISSIONTo achieve superior growth and returns
for our shareholders by delivering technology
and services that improve efﬁciency, increase
recovery, and maximize production forour customers.
VISIONTo deliver a customer experience second
to none, as globally competitive, creative,and ethical thought-leaders.
VALUESOur values are our corporate DNA, thefoundation for how we relate to each otherand to all those with whom we interact.
These are the fundamentals that every
Halliburton employee is expected to embody,
every day.

4•

Integrity: Ethics and integrity are thefoundation of our brand and the guiding
principles for all we do.

•

Safety: Priority number one. We arefocused on our own personal safety,
as well as the safety of others.

•

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

INTEGRATING SUSTAINABILITY

Sustainability is integral to our overall
mission as we seek to deliver superiorﬁnancial growth and returns while minimizing
environmental impacts and acting as a
responsible corporate citizen. Our Guiding
Principles for Sustainability, set out on
pages 6 and 7, provide the framework forsustainable action in the context of theCompany’s overall goals. Each principle ispaired with a clearly deﬁned intent, to which
we hold ourselves accountable and by which
we measure our success.
MATERIAL TOPICS

Our material topics are those most importantto the Company’s overall sustainability
impact. Our assessment of materiality isaligned to industry best practices, including
the Global Reporting Initiative, the Dow
Jones Sustainability Indices, the Carbon
Disclosure Project, the IPIECA oil and gas
industry guidance on sustainability reporting,and the Sustainability Accounting Standards
Board: Oil and Gas Services Standard.

Halliburton determined the material topics
for our business in a comprehensive
assessment completed in 2015. The resultsof this assessment are reviewed annually anda full assessment is conducted every thirdyear. The assessment incorporates internaland external stakeholder engagement withcustomers, investors, employees and leadersacross the business. Engaging stakeholders
in this process enables testing and validationof the results of the analysis, and ensuresthat the expectations and concerns of allgroups are reﬂected in the ﬁnal assessment.

Our Corporate Sustainability Report isstructured to align with the Global Reporting
Initiative (GRI) G4 reporting standard.
The three chapters of the report discuss
our impacts in the GRI sustainability
categories of economic, social andenvironment, and address the speciﬁcmaterial topics for that category.
The ﬁrst two sections of the report discuss
aspects of our operations that affect all three
categories of sustainability performance.
The ﬁrst of these is our Journey to ZEROvision to drive performance improvement
across health and safety, environment, andservice quality. The second is technology
and innovation in our products, services
and processes, where we strive to increase
operational efﬁciency while reducing
sustainability impacts.

HALLIBURTON 2017 SUSTAINABILITY REPORT

SocialEnvironment

Corporate governanceand business ethics

Health, safety
and wellness

Energy andgreenhouse gases

Economic performance

Diversity and inclusion

Supply chain sustainability

Community engagement

Environmental
stewardship

HIGHER

HSW
GG
CG

Importance to stakeholders

OUR REPORTING

Economic

Materiality Matrix

LOWER

Material topics are evaluated on the potential
magnitude and signiﬁcance of any effect on
Halliburton activities and on our stakeholders
across criteria including: regulatory and policy
impact, ﬁnancial impact, environmental
impact, and social impact. Our material topics
determine the metrics that we report inthis document, and indicate the areas where
we concentrate our sustainability efforts.
They are set out in the table on the right.

Material Topics

CE
DI
EP

SCS
ES

MODERATE

HIGH

Impacts on the business

LOWER● Economic● Social● Environment

CG

Corporate governance andbusiness ethics
EP
Economic performance
SCS Supply chain sustainability
DI
Diversity and inclusion

VERY HIGHHIGHER

CE Community engagement
HSW Health, safety and wellness
GG Energy andgreenhouse gases
ES Environmental stewardship5

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

INTENT ▼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,
environment and service quality incidents

To develop solutions that give our customers
economic access to new hydrocarbon
resources and maximize the value of their
existing assets$20.6 billion

106 tonnes$360 million

We generated $20.6 billion of total
Company revenue, a 30 percent increase
from 2016, with strong growth in both of
our operating divisions.

We reduced the greenhouse gas emissions
intensity of our operations to 106 tonnes
per million dollars of revenue, a decreaseof 18 percent.

Total research and development spend
increased by 10 percent year on year to$360 million.

1,000

38 percent

North America and Completion and
Production operating margins improvedby over 1,000 basis points, continuing
to execute on our goal to achieve
normalized margins.

We achieved a historic low in total
recordable injury rate with a ﬁve-year
reduction of 38 percent.

PRINCIPLE ▼Financial
Performance

ACHIEVEMENTS ▼Our Guiding Principles
for Sustainability$2.5 billion
We continued to focus on cash ﬂow
execution, generating approximately$2.5 billion in operating cash ﬂow andretiring $1.4 billion in debt.

29 percent
We achieved a three-year low in spill
volumes, with a 29 percent year-on-year
reduction in 2017.

5,122
Halliburton held a total of 5,122 United States
patents at the end of 2017, with 813 grantedin the year.

1.4
Halliburton achieved industry-leading
patent efﬁciency, with 1.4 patents granted
for every $1 million of research anddevelopment spend.

Ethics and integrity are the foundation for
our Guiding Principles.

6

GlobalCitizenshipTransparency

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$2.1 billion

37>80 percent

Halliburton corporate philanthropy,
including in-kind donations and employee
giving, totaled over $2.1 billion in 2017.

Halliburton makes available chemical safety
information in 37 languages.

More than 80 percent of ﬁeld operations
spend is with local suppliers.

24/7

33

The Halliburton Ethics Helpline is available
24 hours a day, 7 days a week.

Halliburton partnered with universities
around the world on 33 research projects.

15

100+

Senior leaders and the Investor Relations
team participated in 15 investor conferences
during 2017.

We collaborated with customers on over
100 research and development projects inorder to engineer solutions to maximize thevalue of their assets.

$430,000+
Over $430,000 was granted to more than
250 employees to support them in recoveringfrom the effects of Hurricane Harvey.

17 countries
Employees in 17 participating countries
supported local charities throughthe Halliburton Giving Choices match
funding program.

Built on a solid foundation of ethics and integrity, our
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.
HALLIBURTON 2017 SUSTAINABILITY REPORT

7

Journey toZERO
Health and safety, environmental management, and service quality (SQ) are
fundamental to Halliburton operations. Our ability to collaborate with ourcustomers and engineer solutions to maximize the value of their assets depends
on industry-leading performance in each of these areas.
Health, safety and environment (HSE) is one of our Guiding Principles for
Sustainability. Health and safety performance and environmental stewardshipare material sustainability topics for Halliburton.

THIRTY SIX PERCENT
8

Journey to ZERO is the vision that links our actions in all of these areas, and it has
driven our HSE and SQ performance improvement for more than ﬁve years.

Non-productive time
rate has been reduced
by 36 percent in the last
5 years.

38
95
%

>

We achieved a historic low in total
recordable injury rate with a ﬁve-year
reduction of 38 percent.

PERCENTThe Halliburton drivercompetency program
achieved compliance ofover 95 percent.

JOURNEY TO ZERO

Journey to ZERO is the Company’s
vision to achieve zero safety incidents,
zero environmental incidents and zero
non-productive time. This vision expresses
our commitment to our employees, ourcustomers and our communities, andarticulates our priorities – to set the highest
standards, embrace the challenge, andmake no compromises in execution.
The behaviors driving our success in HSEcomplement those for service quality.
Combining HSE and SQ in Journey to ZERO
enables us to maximize our performancegains. We have deﬁned six elements thatprovide a roadmap for achievement. Whilespeciﬁc focus areas evolve annually, theseelements remain consistent each year:
•
•

•
•
•
•

Leadership commitment
Continuous improvement of theHalliburton Management System
Training and competencyCommunicate and address risks
Technology and process improvement
Verify performance

HALLIBURTON MANAGEMENT SYSTEM

Halliburton Management System (HMS)outlines how we work and is foundational
to the execution of our Journey to ZERO.
The standards, processes, guidelines andwork methods that make up HMS equip
our employees to work safely, consistently
and effectively, and enable us to address
the risks that are inherent in our business.
A key element of HMS is the use ofcontrol points, which are deﬁned
requirements or activities that provide
assurance that the job purpose will beachieved. Control points simplify our service
delivery process by identifying key steps
in planning, delivery and post-job review,which can then be measured to verify job
execution. Simplifying our processes inthis way, and verifying execution, enhances
service quality and operational efﬁciency.
This supports our value proposition to
maximize asset value for our customers,
while minimizing the environmental andsocial impacts of our operations.

HALLIBURTON 2017 SUSTAINABILITY REPORTHMS Continuous Improvement is one of
the six elements of Journey to ZERO. Since
2013, we have made ongoing efforts tosimplify HMS, streamlining and standardizing
processes across our global business andwithin each PSL.
An example of how this works in practice isthe lock-out/tag-out (LOTO) process. LOTO
processes and training were simpliﬁed in2017 to improve consistency across the global
business and make these processes easier
to execute. This included standardization of
LOTO procedures and devices. Consistentprocesses, enhanced training materials andstandardized equipment reduce health andsafety risks for our people, and reduce costto the business.
Conformance to HMS is veriﬁed throughmonthly inspections, an operations-led internal
audit program, and audits by Halliburton
Internal Assurance Services, our internal
audit function.
HMS incorporates and goes beyond therequirements of major management systemstandards, including those for quality
management (ISO 9001), environmental
management (ISO 14001), and health andsafety management (OHSAS 18001). HMS
also meets and exceeds the requirementsof the industry-speciﬁc American Petroleum
Institute (API) standards for manufacturing
and service quality (API Q1 and API Q2), and
the API RP 75 standard for offshore safety
and environmental management.
Halliburton leads the industry with 38 API
Q2-certiﬁed facilities, located in ninecountries. In 2017, operations in Angola,
Canada and the United Arab Emirates
began the process of certiﬁcation.

Leadership
Commitment

VerifyPerformance

Technology
and Process
Improvement

HMS Continuous
Improvement

ZERO
Training andCompetencyCommunicate
and Address
Risks

Stop Work Authority
Our global Stop Work Authority (SWA)
program plays a key role in preventing
incidents. All employees and contractors
have the authority – and the responsibility –to stop a task if they observe an unsafe action
or condition at a worksite, or have a concern
regarding the control of an HSE or SQ risk.

COBC
Policies

Business Practices

HMS and HSE Standards

Process Maps

Work Methods

Halliburton Management System
The Halliburton Management System outlines
how we work, with our Code of BusinessConduct (COBC) at the top.

9

Journey to ZERO, continued

HEALTH AND SAFETY PERFORMANCE

Halliburton has signiﬁcantly improved
performance across health and safety inthe last ﬁve years, driven by our ongoingcommitment to Journey to ZERO. We
achieved a reduction of 38 percent in total
recordable incident rate (TRIR) in the period
2013 to 2017, recording a historic low in 2017.
Also positive is the increase in our nearmiss incident rate. This is a leading indicatorof HSE performance, and the increasedemonstrates the effectiveness of oursystems and reporting.
Performance in some key metrics in 2017
was essentially ﬂat or exhibited a slightincrease. The primary driver for this was
the increase in headcount in the year as
the North America land market recovered,
which led to a greater proportion of our ﬁeld
workforce having limited experience. To
address the elevated risk proﬁle associatedwith new employees in the ﬁeld, we arestrengthening our new hire orientation
programs and enhancing mentoring programsfor short-service employees.
HEALTH, SAFETY ANDENVIRONMENT PROGRAMS

Sending every employee home safe andhealthy at the end of every day is a goal towhich all Halliburton team members are
absolutely committed. We strive to achieve
this through a consistent focus on theareas of greatest risk in our business and acommitment to continuous improvement
across our activities.
Two programs designed to addresssigniﬁcant HSE risk in 2017 were Driving
Safety, and Hand and Finger Safety.
DRIVING SAFETY

Vehicle incidents are historically a leading
cause of work-related injuries and fatalities
across our industry. We manage and mitigate
this risk through our Journey Management
process and the use of in-vehicle monitoring
systems across our ﬂeet. These controls
are supported by a rigorous training andcompetency program for our drivers.

10

The Journey Management program
requires drivers to log journeys and assessthem according to pre-deﬁned risk factors.
Driver competencies ensure that our people
are educated to recognize and manage
the driving risks that they will encounter.
These measures have enabled us to improvedriving safety performance by 34 percent
in the last ﬁve years.
HAND AND FINGER SAFETY

Hands and ﬁngers are the body parts
most vulnerable to injury for Halliburton
employees, accounting for over 30 percent
of lost-time injuries in 2017. Halliburton has
enhanced our global hand and ﬁnger safety
programs to address this risk. The three main
improvements implemented in 2017 were:
Injury Prevention Tools – Tools including
push/pull poles, grips, sling straps and ﬁnger
savers have been brought into use acrossHalliburton ﬁeld operations.
Training – Updated trainings on hand andﬁnger injury risks and controls are beingrolled out to ﬁeld personnel, including
enhanced hands-on training for new hires.
Safety Awareness – Communicationmaterials have been created for supervisorsand managers to use to educate theirteams on hand and ﬁnger injury risks
and safe behaviors.
SERVICE QUALITY

Halliburton is the execution company –our commitment to service quality is an
integral part of our Company’s culture, andof our Journey to ZERO vision.
The Service Quality Minimums are theessential elements of how we do ourwork, and these apply to all operations
across all PSLs. They are four key practices
that enable us to deliver excellence in
execution, through process adherence
and continuous improvement.

Design of Service – How we plan
our work: Our Design of Service
process deﬁnes the documentationthat captures the operational planand outlines how we will execute tocustomer requirements.
Control Points – How we control
our work: Control points aredeﬁned requirements or activities
that provide assurance that the job
purpose will be achieved.
Competency – How we ensure
our people have the skills theyneed: Our global competency
program provides the knowledge,
skills, behavior and experience thatenable our people to do the job.
Incident Investigation – How we
improve performance: Throughour incident investigation process,all job-related incidents undergo
thorough and timely investigation
to identify root causes and prevent
incidents from recurring.
Alongside the Service Quality Minimums,
our Management of Change (MOC) process isdesigned to control change-related risk when
new risks are identiﬁed or the operations planis adjusted. The MOC process requires that all
operational and process changes be reviewed,
planned and approved before implementation
to reduce the potential for service disruption
or the creation of new hazards.
Continuous improvement in HMS andexecution of our SQ Minimums have enabled
us to reduce our non-productive time (NPT)rate by 36 percent in the last ﬁve years.

Selected Awards and Recognition

Halliburton Life Rules• In Europe, the Halliburton Completion

The Halliburton Life Rules are 10 key factors that affect employee safety. Based on our HSE standards,
the Life Rules communicate critical requirements to our employees, and are used in all our businesses
and operations. They apply to every employee and every contractor, in every region and every operation.

Tools PSL was recognized by a major
customer for 20 years of operations withzero lost-time incidents.
• The Halliburton San Antonio District
received the 2017 Eagle Ford Environmental
Excellence Award from the South Texas
Energy and Economic Roundtable inrecognition of the contribution to safety,
efﬁciency and innovation of the Frac of the
Future™ suite of products and services.
• The Halliburton team in Thailand was recognized with an award from a major customer
for reaching the safety milestone of 11 yearsof operations with zero lost-time incidents.
• A major customer recognized Halliburton
for our contribution to superior HSE
performance, awarding us for the largest
contribution of safety observations acrossits global operations.

Health and Safety Case Study■ International
Association ofDrilling Contractors(IADC) industry
average

Working at
HeightChemicalHandling

DroppedObjects

Hand Tools

Lifting andHoisting

The Critical Focus Areas are those areas that present the biggest risk for HSE, process safety, andservice quality incidents. When conducting operations involving any Critical Focus Area, extra attention
and absolute adherence to our processes are imperative.
The Critical Focus Areas are:• Barriers – The physical measures, such as packers, plugs, blowout preventers (BOPs), surface valves,

drilling ﬂuids or cement, that prevent gas or oil from ﬂowing into the well from the formation andtraveling to the surface• Hydrocarbons to the Surface – Flow of gas or oil to the surface, such as in well testing or well cleanup
operations• Trapped Pressure – Equipment in which a release of pressure could occur, such as discharge iron,lab machinery, BOPs, cement heads, swages, wellhead pressure control equipment, pipelines, hoses,
tanks or silos• Well Proximity – The potential for collision with a producing or existing wellbore while drilling• Radiation and Explosives – Any surface activities involving a radioactive source or explosive material■ IADC industry
average

HALLIBURTON 2017 SUSTAINABILITY REPORT

Near-Miss
Incident Rateper 200,000
hours worked

7

1

4.59

6.96

8.21

328

205

77

High-Potential
Incidents
per year2

Fatalities
per year

0.33

17Conﬁned
Space

0.30

16

Lock Out/Tag Out (LOTO)

0.39

0.12

15

0.16

0.11

0.36
17

Personal
Protection
Equipment (PPE)Recordable
Vehicle Incident
Rate
per 1,000,000
miles traveled

Lost-Time
Incident Rateper 200,000
hours worked

0.10

0.37
16

0.54

0.40
15

Work Permit

Critical Focus Areas

Halliburton Manufacturing in Lafayette,
Louisiana, was named by the Occupational
Safety and Health Administration (OSHA)
as a Star site in the Voluntary Protection
Program (VPP). The VPP Star is the highest
OSHA program promoting effective
workplace safety and health. It recognizes
employers and workers who demonstrate
exemplary achievement in controlling
occupational safety and health hazards, andthe implementation of health and safety
management systems. Currently, seven
Halliburton Manufacturing and Technology
locations in the U.S. are part of the VPP.

Total Recordable
Incident Rateper 200,000
hours worked

Driving Safety

15

16

17

15

16

17

15

16

17

15

16

17

■ Contractors■ Employees

11

813

571

493

$360

Patents
Grantedper year$329

Total Researchand Development
Spendin millions$487

Technology andInnovation
Technology and Innovation is one of
our Guiding Principles for Sustainability.
Our aim is to lead our industry ininnovation and in the conscientious
stewardship of global resources. Our
technology team continuously strives
to develop solutions that enable ourcustomers to maximize the value of
their assets.
PRODUCT DEVELOPMENT
AND SUSTAINABILITY

15

16

17

15

16

The Halliburton research and development
process incorporates HSE and service quality,
along with compliance and supply chain. By
integrating these factors into every step of theprocess, we produce innovations that enhancesafety and minimize environmental impact
while delivering returns for our customers.

17

We introduced our enhanced productdevelopment process, LIFECYCLE 2.0, in2016 to further integrate customer feedback
into product development, drive collaboration
with global business development, converge
cross-functional value streams, and improve
manufacturability.

Halliburton Design for Excellence

12

The development process is further enhancedby the application of Halliburton Design for
Excellence (HDfX). HDfX is a structured
process that captures customer needs andpain points through techniques such as
Quality Function Deployment, Failure Modes
and Effects Analysis. Halliburton engineers
use powerful and time-tested design methods– such as Design of Experiments, Design for
Reliability and Design for Manufacturability/
Assembly – to render robust, reliable andoptimized products on reduced development
cycle times.
Halliburton was granted 813 U.S. patents
in 2017, an increase of 42 percent from 2016.
The total number of patents held by theCompany at the end of the year is 5,122.
Patent efﬁciency also improved, rising to
1.4 patents per million dollars of researchand development investment.
Our reported number of patents granted
in 2017 includes Halliburton acquisitions,divestitures and ﬁlings that were notreﬂected in public databases at the year end.
Data from 2015 and 2016 were previously
reported based on public databases andhave been restated to reﬂect this change
in methodology.

Statistics

Design for Uncertainty

Quality Function Deployment

Voice of the Market

Failure Modes and Effects Analysis

Robust Product Definition

Design for Reliability

Product Reliability

Design for Experiments

Optimized Product Design

Design for Manufacturing

Reduced Product Defects, Optimal Functionality

TECHNOLOGY HIGHLIGHTS

Listed below are some of the key technologies brought to market in 2017 to enhance sustainability and outcomes for our customers.

EcoStar™ Electric Tubing-Retrievable Safety
Valve (e-TRSV)BaraShale™ Lite Drilling Fluid System

Acoustic Conformance Xaminer® (ACXTM)BaraShale™ Lite is a direct emulsion drilling
ﬂuid that has been a success in U.S. land
unconventionals. The system can be salt-saturated
for drilling salt zones, while the emulsiﬁed oil
affords reduced densities for later lower-pressurezones. Improved hole quality is observed, allowing
for reduced cement volumes and better zonal
isolation, and making it easier to meet statebarrier requirements for getting cement backto surface. Total drilling times were reduced byapproximately 7 percent compared to offset
wells through greater drilling efﬁciencies.
Waste disposal costs were reduced by anaverage of 70 percent due to haul-off waste
volume reductions.

Acoustic Conformance Xaminer® (ACX™)
service provides accurate leak detection inside
the well-bore through real-time, new-generation
acoustic analysis using hydrophone array
technology. Our unique radial locator algorithm
helps customers identify which annulus orcomponent of an oil and gas well is leaking.
By taking appropriate corrective action, customers
beneﬁt by lowering their workover cost andimproving production efﬁciency. Quick identiﬁcation of leaks in real time reduces the standby
cost for customers, allowing them to avoid amore complex intervention while saving millionsof dollars in workover costs, and lowering ourenvironmental footprint at the wellsite.

ExpressSand™ Delivery System

AMWAJSM Fracturing Fluid Service

Next-Gen Ranging

ExpressSand Delivery System provides a stepchange in proppant management, optimizing
proppant logistics while drastically improving
HSE and equipment reliability at the wellsite.
Increased job sizes and proppant volumes in
unconventionals have resulted in additional
complexity in bulk storage, logistics and proppantconveyance on location. Traditional methods
involve multiple trucks on location, pneumaticallytransferring proppant to storage bins forseveral hours during the fracturing treatment.
The process requires a team of personnel tomanage the operation, along with multiple
pieces of equipment, resulting in noise and dust
generation. The ExpressSand Delivery System
uses containerized proppant delivery and storage
to signiﬁcantly reduce equipment and logistics
needs, and noise and dust generation.

AMWAJ Fracturing Fluid Service is a new
fracturing ﬂuid system customized for use with
nano-ﬁltered seawater in wells up to 350°F.
By enabling the use of seawater, the AMWAJ
service reduces the use of fresh water in wellstimulation, thus reducing overall environmental
footprint. This approach is particularly valuable
in water-stressed regions. In 2017, Halliburton
successfully introduced this new service in the
Middle East region.

Next-Gen Ranging is a no-access active magnetic
ranging technology that utilizes surface excitation
to determine a ranging distance and direction
relative to the drilling wellbore. This unique
technology requires only surface access to thetarget wellbore wellhead, unlike legacy toolsthat require downhole access to deploy amagnetic source. Next-Gen Ranging technology
removes logistical challenges associatedwith obtaining downhole access to adjacent
wellbores. It eliminates the cost of wireline
ranging conveyance and reduces the number ofﬁeld personnel on location, ultimately lowering
HSE risks. It enhances surface efﬁciency byallowing for reduced surface footprint, such asa 50-percent reduction in slot-spacing, throughoptimized pad design.

The Halliburton EcoStar™ valve is the world’s
ﬁrst electric tubing-retrievable safety valve(e-TRSV). EcoStar removes hydraulics and hydraulicactuation from subsea architecture, solving a
30-year need for an electrically actuated safetyvalve that can be integrated with an all-electricsubsea tree. By delivering direct positional
feedback between the full-open and full-closed
positions, and providing sensor communication
to the surface, the valve allows for analysis anddiagnostic capabilities that are not available
in any other safety valve on the market. The
EcoStar e-TRSV and associated all-electric control
systems require no hydraulic ﬂuids, eliminating
the potential for hydraulic spills and the need topurge hydraulic ﬂuids to the sea on closure, thus
removing all negative environmental impacts.

HALLIBURTON 2017 SUSTAINABILITY REPORT

13

Managing Sustainability:
Impacts, Programs
and Performance14

We assess sustainability acrossthree aspects: Economic, Social andEnvironmental. Speciﬁc programs andmeasures, along with key performanceindicators, measure success across ourvalue chain. They are outlined in thefollowing chapters.

HALLIBURTON 2017 SUSTAINABILITY REPORT15

EIGHTY
PERCENT$20.6

More than 80 percent of ﬁeld operations
spend is with local suppliers.
We generated$20.6 billion of
total Company
revenue, a30 percent
increase from2016, with strong
growth in bothof our operating
divisions.

billionEconomic

MATERIAL TOPICS – ECONOMIC

Corporate Governanceand Business Ethics• Economic Performance• Supply Chain
Sustainability•

74
1.
MILLION HOURS

Halliburton employees completed 1.74 million
hours of training in 2017.

16

The economic aspects of sustainability that are material to Halliburton encompass
our own ﬁnancial performance – one of our Guiding Principles for Sustainability –and the impacts that we have on stakeholders through our governance structures,
our supply chain and our employees.
Coupled with a rigorous commitment to ethical conduct, our focus on the economic
aspects of sustainable development produces positive outcomes for the Company
and all of our stakeholders.

CORPORATE GOVERNANCE

Annual evaluation of Company director
criteria, board diversity proﬁles, skills andexperience are performed by the board’s
Nominating and Corporate GovernanceCommittee. This committee also performs
assessments of the board, committees anddirectors, considers recommendations fromshareholders and directors, and proposes
directors for the Company’s annual board
elections. Suitable director candidates
are identiﬁed by board members, ourmanagement, or a third-party executive
search ﬁrm.

BOARD OVERSIGHT AND COMMITTEESCOMMUNICATION WITH THE

Halliburton Corporate Governance
Guidelines are reviewed annually and serve
as a guidepost for the Board of Directors.
Topics pertaining to corporate citizenship,
governance and sustainability are routinely
reviewed at meetings of the board and its
committees. The board and its committees
also carry out ongoing reviews of HSE
performance, ﬁnancial results and current
risks facing the Company.

BOARD OF DIRECTORS

Expert brieﬁngs, training seminars andreadings further board member knowledgeof sustainable development, and of theeconomic, environmental and social factorsthat may affect the Company’s success.

HSE AND SUSTAINABLE DEVELOPMENT

Ethics and integrity are the foundation of
our Guiding Principles for Sustainability,
and integrity is a core value for Halliburton.
The Company acts on our commitment
to ethical behavior through the oversightprovided by our Board of Directors, ourCode of Business Conduct (COBC), ouremployment practices, and our internal
assurance function.

BOARD COMPOSITION AND DIVERSITYThe Halliburton Board of Directors provides
comprehensive oversight of the management
and governance of the Company. In 2017,
our board had 13 members. All directors
stand for election at our annual meeting ofshareholders, and, except for the chairmanof the board and the chief executive ofﬁcer,
all directors are independent as deﬁned by
the New York Stock Exchange. The board has
also designated one of its senior independent
members to act as Lead Director.

HALLIBURTON 2017 SUSTAINABILITY REPORTTransparent and open communication withshareholders, employees and all interested
parties is encouraged by our management
and board. Phone numbers and listings for
postal and email addresses are provided
on the Halliburton website. Our corporate
secretary and our Investor Relations group
regularly interact with shareholders and makethemselves available for calls or meetings.
EXECUTIVE COMMITTEE

The HSE and Sustainable Development(SD) Executive Committee is charged withoversight of HSE and SD matters – including
annual strategies, HSE performance andthe HSE audit program – and is accountable
to the Board of Directors’ HSE Committee.
The Company’s Executive Vice President for
Global Business Lines is chief HSE ofﬁcer
and chair of the HSE and SD executive
committee, and reports to each meeting of
the Board of Directors’ HSE Committee.

In 2017,
The Board of Directors
met six times,

six

6
5
8
the Compensation
Committee met six times,

the HSE Committee met ﬁve times,
the Audit
Committee
met eight times,

and the Nominating and Corporate
Governance Committee met four times.

4

Corporate Governanceand Business Ethics

Signiﬁcant HSE incidents are examinedby the committee, with particular attention
given to potential violations of laws or
regulations, or of the Halliburton COBC.
The committee may request further
information or call on individuals involved
to provide additional detail, and may
recommend follow-up actions.

17Economic, continued

EXECUTIVE COMPENSATIONThe Halliburton executive compensation
program is overseen by the Compensation
Committee of the Board of Directors andfeatures market-driven compensation within
a common total-compensation framework,with ﬂexibility to accommodate differences inbusiness drivers and objectives throughout ourbusiness units. Our executive compensation
includes a base salary, a balanced mix oflong- and short-term incentives, supplemental
discretionary retirement, and beneﬁts. The
program is regularly reviewed to ensurethat it supports the Company’s strategies
and generates value for our shareholders.
Additional information is published in our
proxy statement.

Board of Directors

BUSINESS ETHICS

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

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

J. Landis Martin
Chairman,
Platte River Equity

Jeffrey A. Miller
President and Chief Executive Ofﬁcer,
Halliburton Company

José C. GrubisichManaging Partner,
Olímpia Investimentos e Participações

Alan M. Bennett
Retired President and Chief Executive Ofﬁcer,
H&R Block, Inc.

Abdulaziz F. Al Khayyal
Retired Senior Vice President ofIndustrial Relations, Saudi Aramco

William E. Albrecht
Non-Executive Chairman of the Board of
California Resources Corporation

Debra L. Reed
Chairman of the Board andChief Executive Ofﬁcer, Sempra Energy

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

Murry S. Gerber
Retired Executive Chairman of the Board,
EQT Corporation
David J. Lesar
Executive Chairman of the Board,
Halliburton Company

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

CODE OF BUSINESS CONDUCTOur Code of Business Conduct requires
employees, directors, ofﬁcers, and all third
parties that conduct business with or on ourbehalf, to act with fairness, integrity, and highstandards of personal and business ethics.
Everyone is accountable for upholding the
COBC and for reporting potential violations of
the COBC or the law. The COBC is accessible
in 14 languages on the Halliburton website.
Employees are required to complete
COBC training every two years. In 2017, morethan 39,000 employees completed COBC
training and more than 7,000 employees
completed anti-corruption training. Additionally,targeted communications, such as Ethics
Tips, Ethics Moments, and executive videos,engage employees on a variety of COBCrelated topics. These communications provide
information on issues such as corporate fraud,commercial bribery, hospitality, anti-boycottcompliance, third-party due diligence, andanti-retaliation.
The Global Ethics and Compliance groupis responsible for investigating and taking
corrective action on all reports of potential
violations of the COBC or the law. During
2017, 180 reports alleging substantial
potential breaches of the COBC were made.
Allegations were related to a variety of18

issues, including discrimination, harrassment,
retaliation, fraud, theft, conﬂicts of interest,
sensitive transactions, unauthorized
disclosure of conﬁdential information, andHSE. The majority of these investigations did
not ﬁnd misconduct. Where corrective action
was necessary, disciplinary actions weretaken, including terminations, restitutions,suspensions, demotions, coaching, training,
written warnings and verbal reprimands.
The Chief Ethics and Compliance Ofﬁcer
reports to the Audit Committee of the Boardof Directors on investigations, COBC audits
and other COBC-related topics each quarter,and provides the Audit Committee with acomprehensive annual report.
Halliburton encourages anyone with aconcern to make a report to the Global Ethics
and Compliance group. The COBC webpage
contains several ways to report issues or
ask questions, including through the Ethics
Helpline. The Ethics Helpline is operated
by a third-party, and is available in multiple
languages, 24 hours a day, seven days aweek. Reports can be made anonymously.
Halliburton strictly prohibits retaliation forreporting potential violations of the COBC
or the law.
ANTI-CORRUPTION LAWS

Halliburton business practices and policies
promote ethical conduct in all businessactivities and minimize risk of violations ofanti-corruption laws including the U.S. Foreign
Corrupt Practices Act (FCPA), the U.K. Bribery
Act and other similar laws. Halliburton strictly
prohibits making, promising or offering
anything of value to inﬂuence the decisionsof customers or government ofﬁcials.
Halliburton does not tolerate conduct that
violates anti-corruption laws and provides
in-person and online anti-corruption training in
multiple languages to managers, expatriatesand employees in high-risk countries.
INTERNAL ASSURANCE SERVICES

Internal Assurance Services provides
assurance and insight on the management
system of control. This function has
responsibility for audits of ﬁnancial controls,

HALLIBURTON 2017 SUSTAINABILITY REPORT

corporate support functions, service quality
and HSE. The internal audit is an integral partof our governance of HSE and SQ, and of
ﬁnancial controls.
A risk-based approach is used to develop
the audit plan and determine the scopeof work. Audit outcomes are ﬁnalized ina formal report, and actions are required
to address reported audit observations.
Audit ﬁndings, trends and insights arereported within the organization and toboard committees, as applicable.
TAXATION

The Halliburton taxation strategy is consistent
with our commitment to integrity and ethics,
and with our Guiding Principle on Global
Citizenship. We are committed to meeting
our legal obligations in the payment of taxes
and the disclosure of taxes paid and effective
rates. This information is set out in the notes
to our ﬁnancial statements.
EMPLOYMENT PRACTICESHalliburton offers 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. Our COBC applies to all
employees and contractors, and states thatany behavior that creates an intimidating,hostile or offensive work environment will
not be tolerated. We adhere to all local
laws regarding employee wages, and ourcompensation practices are based on market
and industry standards. We do not employ
child labor, and we prescreen potential
suppliers, vendors and contractors to conﬁrm
legal compliance by requiring that proposals
include a statement of their intent to adhere
to laws and regulations regarding forced or
child labor and the payment of wages. As of
December 31, 2017, approximately 13 percent
of our workforce was covered by collective
bargaining agreements.

Business Ethics Case Study

The Local Ethics Ofﬁcer (LEO) programprovides frontline support for our Codeof Business Conduct. It is a critical initiativeand core reﬂection of the Halliburtoncommitment to doing business the
REDWay – Responsibly, Ethically and
Diligently. Approximately 60 employees
from around the Company are nominatedto three-year terms and serve as ethics
and compliance champions in theirgeographical areas.
LEOs are drawn from across all PSLs andsupport functions. They act as a liaison
between local employees and Global
Ethics and Compliance. They advise
Company employees on questions related
to the COBC, serve as an intake point forallegations of potential misconduct, deliver
regular training through Ethics Moments
and Ethics Tips, and work to embed ethics
and compliance into the organization.
The most recent class of LEOs delivered
369 organized training sessions to morethan 15,500 attendees. A new LEO classbegan its term in November 2017.

19

$20.6

Economic, continued

billionEconomic Performance$2.5
billionOperating Cash Flow

Our mission to deliver superior growth
and returns for our shareholders isdependent on exceptional ﬁnancial
performance. Developing our people isfundamental to our company vision and to
our ability to create value in the long term.
FINANCIAL PERFORMANCE

Revenue

626$

MILLION
Dividends to Shareholders

1

$ .4
B
Operating
Income20

Financial performance and employee
development are important elementsof our overall economic performance asa business, and ﬁnancial performanceis one of our Guiding Principles for
Sustainability.

In 2017, the oil and gas industry began toemerge from the most severe downturn it
has seen in several decades as commodity
prices continued to improve. The North
America market experienced strong growththrough the year. Halliburton moved
quickly to reactivate equipment to meetcustomer demand and aligned its businesswith customers in the fastest growing
market segments, leading to market share
growth and progress toward normalized
margins. The international market was morechallenging; however, we focused on the useof technology and lowering customer costs
which has enabled our organization to makeeven the toughest of markets sustainable.
WINNING THE RECOVERYThe Company continued to outperform
its peers through the cycle, delivering
industry-leading returns to shareholders andincreasing market share globally. We havefocused on ﬁrm capital discipline and strong
cash ﬂow, strengthening our balance sheet
through debt reduction of $1.4 billion in
the year and generating approximately$2.5 billion in operating cash ﬂow.
Our revenues in 2017 were $20.6 billion,
a 30 percent increase from 2016, with ourCompletion and Production division improving
47 percent and our Drilling and Evaluation
division improving 8 percent. These results
were primarily driven by increased activity,
utilization and pricing in the United Statesland market associated with stimulation,

well completion and drilling services.
We improved our North America andCompletion and Production operating
margins by over 1,000 basis points from2016 levels, continuing to execute on ourgoal to achieve normalized margins.
Our operating results also beneﬁted fromthe structural global cost saving initiatives
implemented over the past few years toaddress challenging market conditions.
The international markets have been slower
to recover, with stressed customer budgets
and economics across deepwater andmature ﬁelds. However, this sector began
to show signs of recovery in the latter halfof 2017, and we are encouraged by thismarket going into 2018.
LOOKING TO THE FUTURE

Our value proposition – to collaborate andengineer solutions to maximize asset value
for our customers – is at the foundation of
our success. In 2018, as the market recovery
gathers momentum, we will continue tofocus on listening to our customers andresponding to their needs.
As the execution company, Halliburton
leads the industry in service quality.
We will continue to invest in the areas
where we uniquely create value, and to
win the work that we believe is most
proﬁtable. The competitive advantage ofour comprehensive service offering, alliedwith ongoing capital discipline, should
enable us to deliver strong cash ﬂow andindustry-leading returns in 2018.
EMPLOYEE DEVELOPMENT

Employee development is a strategic,
long-term investment that aligns withour corporate strategy, our sustainability
approach and our core values. Employee
development at Halliburton encompasses
learning and training, performance
management, and programs designed
to foster individual well-being. We offer
employees an abundance of resources toproactively drive employee development
and enable them to explore future career
opportunities. These tools are easily
accessible through our online Employee
Development Hub.

$1.2 million in Employee Education Assistance Program funding in 2017
LEARNING, TRAINING AND DEVELOPMENTLEADERSHIP DEVELOPMENT

Employees have access to a variety oflearning and career resources via the
Employee Development Hub, including
Learning Central and Competency Central.
Learning Central is a comprehensive learning
management system that presents a variety
of technical and non-technical training
libraries, and which documents careerdevelopment activities. Competency Centralconnects required competencies to job roles.
These resources ensure that employees
receive relevant training and developmentthat is aligned to business needs and ourservice quality framework.

Halliburton has ﬁve deﬁned levels of
leadership: Emerging, Frontline, Operational,
Transformational, and Strategic. Ongoing
identiﬁcation, assessment and developmentof our leadership talent strengthen ourcompetitive advantage and are critical to
our short-term and long-term success.

In addition to the online courses provided
by Learning Central, our network of
training centers offers employees technical,
operational and leadership training inclassroom and hands-on workshop settings.

Halliburton also offers customized assessment and development opportunities for
employees currently in leadership positions.
These include stretch assignments, leadershipdevelopment plans with coaching, and training
programs developed and facilitated internallyand externally.

Overall training hours declined by 14 percent
in 2017 to 1.74 million hours, driven bylimited recruitment outside North America
and efforts to focus training where there isgreatest return on investment. To ensurethat training resource is used where it isneeded most, we streamlined requirements
for non-ﬁeld personnel and enhanced training
for new hires going into the ﬁeld. Thesechanges, and increased recruitment in the
North America market, led to a global averageof 33 training hours per learner, the sameas in 2016.
HALLIBURTON 2017 SUSTAINABILITY REPORT

16

99%
93%
88%
72%

99% 99%93% 98%
88% 93%
72% 75%17

Business Leadership
Development Courses
Number of Attendees

Year

Level I
Attendees

Level II
Attendees

Level III
Attendees

2015
2016
2017

879
509
432

351
148
135

90
48
57

Employee
Training
million hours

Training Hours
per Learner
hours

PERFORMANCE AND
33

33

Employees also complete a semi-annual
Employee Pulse Survey to capture theirviews on important topics including strategy
communication, employee engagement, andmanager coaching and feedback. Aggregatedresults give leaders valuable insight on where
opportunities exist to enhance employee
engagement within their organizations.

47

Halliburton manages employee performanceand engagement through frequent, forwardlooking “Check-ins” between employees
and supervisors. These discussions focus
on status of work, priorities, performance
feedback and development. All employees
are part of the Check-in process, which is thecornerstone of our performance management
and career development framework.

1.74

SUCCESSION MANAGEMENT
2.02

Our Global Competency Assurance Program
was again granted full accreditation in2017 by the International Association ofDrilling Contractors, with full competency
accreditation for positions across all PSLs
and support functions globally. We remain
the only full-spectrum oilﬁeld services
company to have global accreditation withno restrictions.

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

15

4.03

Employees can also independently registerfor training and other development activities.
By identifying and addressing gaps inknowledge or skills, they can determine
the development necessary to advance tothe next career level. Managers assign andassess their employees’ competencies for
current roles and next roles of interest.

Career development frameworks that
prepare qualiﬁed employees for leadershiproles include the Supply Chain Management
Program, Technology Professional Development
Program, Human Resources Leadership
Program, Hire to HSE Manager, and theHire to Country Manager process.

Employees: Percentage ofLocal Nationals in Workforce

15

16

17

15

16

17

21

Strong performance, candid career conversations, and proactiveplanning fuel ongoing employee development and maintain leadership
bench strength.

Economic, continued
Hire to Country Manager Process

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

PHASE 3

PHASE 4

PHASE 5

Role
Technical
Professional

Role
Technical
Professional

Role
Account
Representative

Role
Service
CoordinatorRole
PSL Service
Manager

Competency
Technical Depth

Competency
Service Execution

Competency
Customer Focus

Competency
Frontline
Leadership

Competency
Business Acumen

Levels of Leadership
Strategic Leaders

Constant and active communication
between employees and managers is thecore of our annual succession management
process. This helps to identify, develop andretain a reliable succession of skilled leaders.
Succession management is a proven method
for assessing the skills, talent and potential of
employees. It targets top talent for accelerated
development within the Company throughtailored development plans.
EMPLOYEE WELL-BEING PROGRAMSTransformational Leaders
Operational Leaders
Frontline Leaders
Emerging Leaders

22

Halliburton works to foster the overall
well-being of all of our employees. We offer
programs that help employees constructively
cope with well-being issues that arise within
and outside the workplace, including:•

The Halliburton Dispute Resolution
Program, which provides independent
ombudsman and mediator support for
employees to resolve workplace issues.

•

The Employee Assistance Program,which offers conﬁdential help and support
for a range of personal and professional
difﬁculties.

•

The Halliburton Employee Wellness
Program, which supplies tools and support
for employees and their families to take aholistic approach to health and wellness,
including tobacco cessation, weight-loss
programs and ﬁnancial planning andeducational workshops.

PSL Country
Manager

Supply Chain Sustainability
As the largest support function within
Halliburton, our Supply Chain operationis responsible for managing $2.4 billion
in inventory and two million logistics
moves each year. Comprising procurement
and materials, manufacturing andlogistics, the Supply Chain function
oversees a global network of suppliers,
warehouses and cross docks, including
18 worldwide manufacturing facilities.
Halliburton maintains the highest
standards of corporate citizenshipthroughout our global operations, andrequires the same from our business
partners. We strive to maximize thepositive economic and social impactsof our value chain, while minimizing
environmental impacts. One way weachieve this is by engaging local anddiverse suppliers around the world.
This practice exempliﬁes good corporate
citizenship, and it is good business,increasing the strength and resiliencyof our supply chains.

SUPPLY CHAIN GOVERNANCELOCAL CONTENT AND SUPPLIER DIVERSITY

Halliburton is committed to compliancewith the requirements of all applicable
employment, labor and human rights laws toensure fair and ethical employment practices,
including our policies on non-discrimination,
minimum age and fair compensation, andthrough our policies on health, safety, andsecurity for our employees. Halliburton
expects our suppliers to apply the same
standards, and to protect and uphold thefundamental rights of their employees
as stated in the United Nations Universal
Declaration of Human Rights.

In 2017, more than 80 percent of the Company’s regional ﬁeld operations spend was with
suppliers from locations in that region. We establish and foster relationships with suppliers
that can provide Halliburton with strategic and competitive advantages for our local operations,while expanding the capacity and competency of national and local industry suppliers.
Local sourcing efforts are shaped to the speciﬁc governmental, cultural and economic needsof each country. Additionally, Halliburton supports small, minority-owned and women-owned
businesses throughout our U.S. supply chain.

Potential suppliers to Halliburton undergoa risk evaluation process covering export
controls and sanctions screening, insurance
veriﬁcations, and safety training for onsite
vendors. We also perform due diligence
checks on all international noncommercial
agents, such as customs brokers, freight
forwarders, and immigration and visa agents.
Suppliers are evaluated on risks related
to safety, quality, environment, social
responsibility, economics and governance.
The Company manages risk and assesses
supplier performance by using annual audits,
while key suppliers are selected annuallyfor in-depth evaluation of operational
performance, including HSE and corporate
citizenship. We also provide training for
suppliers to ensure that they meet ourstandards and to assist them in becoming
better community partners, including
review of HSE standards and conﬂict
mineral compliance.
Suppliers are required to supply Democratic
Republic of Congo (DRC) conﬂict-freematerials to Halliburton, furnish information
to assist in determining that work provided toHalliburton is DRC conﬂict-free, and respondto requests for information on sources ofsupply. These requirements support ourcommitment to the Responsible Minerals
Initiative and our compliance with Section
1502 of the United States Dodd-Frank Act.
Halliburton was again ranked as one of theleading energy services companies by the
Responsible Sourcing Network in its 2017
evaluation of conﬂict minerals disclosure.
HALLIBURTON 2017 SUSTAINABILITY REPORT

Saudi Arabia

Nigeria

Halliburton provided technical training, documentation and inspection techniques to local manufacturing suppliers to enable the production ofCompany equipment. The training facilitated aproactive contribution to the In-Kingdom Total Value
Add (IKTVA) Program, a Saudi Arabia initiative
to have 70 percent localization by 2021 and tocreate more than 500,000 jobs.

Halliburton conducted individual on-site local
supplier forums to improve content and capacity
by educating and refreshing suppliers on our internal
processes and compliance requirements. Our efforts
resulted in local suppliers consistently accounting
for more than 85 percent of spend in Nigeria.

United Kingdom

United States

The Company undertook a survey based on the
Slavery & Trafﬁcking Risk Template to assess therisk of modern slavery in our U.K. supply chain.
The survey was sent to over 800 suppliers in
30 countries, covering 96 percent of our U.K.-based
spend. All U.K. Supply Chain employees completed
Ethical Procurement and Supply training from a
globally recognized organization to support theirability to identify signs of human trafﬁcking andforced labor.

Halliburton supported the development of a local
supplier by sharing order placement, production
and stocking strategies, and removing waste fromthe delivery process. This collaboration resulted ina 98-percent improvement in on-time delivery, andin a strong relationship with this supplier and theirbusiness partners.

23

HARVEY$430,000+

Over $430,000 was granted to more than 250 employees to support them inrecovering from the effects of Hurricane Harvey.

Employees in 17 participating countries supported
local charities through the Halliburton Giving
Choices match funding program.

17

Halliburton takes a proactive approach to the societal impacts of our operations.
This approach is grounded in our core values of Safety, Integrity, Collaboration and
Respect, and linked by our Guiding Principles for Sustainability – in particular, Health,
Safety and Environment, Global Citizenship, and Collaboration.
The social aspects of sustainability that we consider to be material reﬂect ourapproach. We are committed to fostering a safe and inclusive work environment
where every member of our diverse workforce can thrive. We also strive for positive
engagement with all of the communities where we operate.

24

FIFTEEN

SocialSeniorleaders
and theInvestor
Relations
team
participatedin 15 investor
conferences
during 2017.

MATERIAL TOPICS – SOCIAL

Health, Safety andWellness• Diversity and Inclusion• Community Engagement•

Diversity and Inclusion
A strong culture of diversity and inclusion
fuels the Company’s long-term successwhile enabling employees to reach theirfull potential. This culture is supported
by our COBC and formal employment
practices where we commit to involve
all employees in creating a positive work
environment. This is reinforced throughongoing campaigns to highlight thevalue of diverse points of view, and isstrengthened by diversity training forevery level of leadership. The results ofour efforts are visible in our Employee
Resource Groups and in the diversity of
our workforce.
EMPLOYEE RESOURCE GROUPS

Halliburton Employee Resource Groups aredesigned to support employees throughnetworking and professional development.
They are open to all employees, and enable
the creation of personal and professional
connections across our global workforce.

Women Sharing Excellence (WSE) is aninternal professional network dedicated topromoting employee development, building
leadership competencies and increasing
employee retention. The organization is
open to all Halliburton professionals, andhas more than 900 members globally.
WSE provides support in career planningand self-development through mentoring,training, community-service events,
spotlight recognition and a workplace
conversation series.

HALLIBURTON 2017 SUSTAINABILITY REPORTDiversity Partnerships

Halliburton African American Network
Forum (HAANF) supports the Company’s
diverse workforce through networking,mentoring and promoting professional
growth, with the mission to educate,motivate and empower its members.
Participants engage in community service
events and lead career development
workshops. Although HAANF members areprimarily African-American employees, theorganization is open to all employees whoseek to cultivate a diverse environment thatprovides opportunities for advancement,
success and growth.

Veterans Leadership Forum (VLF)
provides tools and opportunities for
professional development to members to
help maximize their contributions to theCompany’s success. Established by and forveterans in 2013, VLF membership is open
to all Halliburton employees who seek toenhance their careers.

Halliburton partners with non-proﬁts
in the United States and around theworld to advance diversity and inclusion.
These partnerships are primarily focusedon enhancing the role of women in theoil and gas industry and in engineering.
• Catalyst Inc. – Global• Society of Women Engineers (SWE) –Member of Corporate PartnershipCouncil Board• National Diversity Council – U.S.
• Pink Petro – Global
Diversity Events• Sponsor of Society of Women Engineers(SWE) National Conference, Austin, Texas,
October 2017
• Sponsor of Women’s Energy Network
National Conference, Houston, Texas,
April 2017
• Sponsor of Greater Houston Women’s
Chamber of Commerce Conference,
Houston, Texas, April 2017
• Sponsor of SWE Local Pune Conference,
Pune, India, March 2017
Diversity Awards• Top 50 Employer, Woman Engineer

Magazine• Lyn Beaty – 2017 Breakthrough Womanof the Year – Greater Houston Women’s
Chamber of Commerce• Myrtle Jones – Houston’s 50 Most Inﬂuential
Women – Houston Woman Magazine• Aniket Kumar – 2017 Young Engineer of
the Year – Society of Petroleum Engineers,
Gulf Coast Section

PRIDE is dedicated to creating a positiveand inclusive work environment for peopleof all sexual orientations and gender
identities. The organization achieves its
goal through education, awareness andresults that add business value throughindustry relations. PRIDE membership is
open to all Halliburton employees.

25

FOUR PILLARS OF GIVING

Social, continued

In addition to direct corporate giving and community investment, Halliburton corporate
philanthropy includes employee giving programs and volunteer activities, and donations
made through the Halliburton Foundation. Examples of our philanthropic activities in2017 include:

Community Engagement
Community engagement incorporates
many aspects of our interactions with
our external stakeholders. Three of ourGuiding Principles for Sustainability
are Global Citizenship, Transparency andCollaboration, and these provide theframework for our engagement withstakeholders and our commitment
to philanthropy.
COMMUNITY RELATIONSHalliburton has been committed toenhancing the well-being of the communities
in which we operate since the Company’s
formation. Early in the last century, founderErle P. Halliburton established a heritageof positive community impact throughgenerous support of local charities andgood causes in his community.
Today, the Company continues to create
economic and social opportunity for thecommunities where we live and work.
Our promise of corporate citizenship isengrained in our culture, and it creates
sustained value for our Company, ourstakeholders and the world.
STAKEHOLDER ENGAGEMENT

Halliburton stakeholders include investors,
legislators and regulators, industry groups,
and the general public. We foster relationships
with these external stakeholders throughparticipation in industry afﬁliations andconferences, and by publishing thoughtleadership articles in mainstream andtrade publications.
Halliburton works with government ofﬁcials
to provide detailed information on ouroperations, examine emerging technologies
and contribute to the discussion of regulatory
standards. For example, Company representatives have been involved in the policy
discussions surrounding the developmentof shale gas and oil resources in the U.S.,
Canada, Mexico, Europe and Australia.

26

Education

Environment

Every year, we enhance the futures of thousandsof students around the world through our support
for educational institutions at all levels.

Environmental stewardship is at the core of
our approach to sustainability. We strive tomanage our own impacts, and to educate andequip others for responsible conduct.

Halliburton Hope Primary School
Sichuan, China
When China was devastated by an earthquake
in 2008, Halliburton created a relationship with
the Halliburton Hope Primary School in the regionof Sichuan. Since that time, the Company has
provided more than $70,000 to help restore andsupport the school and its students.
Over the years, volunteers have delivered
air-conditioning units and a wide range ofschool supplies. They have also introduced
courses in English, art, music and physicaleducation. In 2017, Halliburton volunteers
brought English-language audio textbooks,
harmonicas and 3D animation to the school inorder to help foster a more interactive learning
environment. Students created art projects andwere awarded certiﬁcates recognizing their
newly acquired skills.

A Gathering Place for Tulsa
In December 2017, Halliburton pledged a$10 million donation to the Gathering Place for
Tulsa park, in Tulsa, Oklahoma, to sponsor theconstruction of the King’s Post Bridge in the park.
A Gathering Place for Tulsa is a planned
100-acre park along the Arkansas River thatwill regenerate the waterfront by connecting
the existing River Parks. Phase I, the ﬁrst
66.5 acres, will include experiences for all ages,
such as the ﬁve-acre Adventure Playground to
Mist Mountain, sport courts, bike and skateparks, nature trails, and large lawns for concerts.
Phase I of the park is expected to open in latespring/summer 2018.

Energy to Help

Giving Choices

Halliburton encourages organized employee
volunteer teams to apply for annual grants
from $500 to $1,500. The grants fundcommunity service projects that the volunteer
teams perform with local charities. This grant
program, The Energy to Help™, supports
our Four Pillars of Giving, while providing
employee volunteers the opportunity to assist
and engage with the communities where
they work and live.

$1.3M was pledgedby employees in
17 countries.
Employees in Egypt, Iraq, Kuwait, Oman,
Pakistan, Qatar, UAE, UK, US, Australia,
Canada, India, Indonesia, Malaysia, Mexico,
New Zealand, and Singapore participatedin the Halliburton matched payroll giving
program, Giving Choices, pledging a totalof $1.3 million.

Corporate Giving$2,107,489,304
Landmark in-kind donations$1,103,588
Halliburton Corporate Giving
Health and Safety

Social Service

By engaging our employees and the communities
where we work, we enable them to live better,
healthier lives. We partner with local charities andmedical facilities around the world to increase
access to healthcare and improve community
well-being.

Halliburton supports communities to address
their most vital social issues. We collaborate
with charities and other organizations that are
working to end homelessness, support domestic
violence victims, and eradicate hunger. Throughdonations and volunteer programs, we aremaking a difference in every country where
Halliburton operates.

Children’s Charity Foundation, Singapore
In June 2017, 46 Halliburton employees in our
Singapore location participated in Hair for Hope2017, the signature annual fundraising eventof the Children’s Cancer Fund, raising nearly
US$20,000. Volunteers had their heads shaved
as a way to show children and their families
they are not alone in the ﬁght against cancer.
By demonstrating the beauty of baldness, they
promoted greater public awareness of childhood
cancer in Singapore, and raised funds to aid
children and families impacted by cancer.

School supplies for children in need

$5,826,395
Halliburton Foundation$432,500
Hurricane Harvey Disaster Relief Fund

$1,311,964
Employee Giving (Giving Choices)$2,116,163,751
Total

In June 2017, Halliburton employees in Carrollton,
Texas, partnered with a social services charity,
Metrocrest Services, to provide school supplies
for local children in need. Volunteers raised money
to provide school supplies and backpacks forthe new school year. Carrollton employees
raised funds to ﬁll 10 large boxes with backpacks
and supplies.
Employees at the North Belt campus in Houston
seized a similar opportunity to support local
children heading back to school. Employees
donated 200 backpacks full of supplies forstudents at Johnson Elementary School in the
nearby Aldine Independent School District.
Volunteers hand-delivered the backpacks at thestart of the academic year.

Halliburton Charity Golf Tournament
The 2017 Halliburton Charity Golf Tournament
brought together over 400 golfers and raised
more than $2.5 million for more than 24 nonproﬁtorganizations across the United States. In its
24-year history, the tournament has donatedalmost $14 million to charities across the country.

HALLIBURTON 2017 SUSTAINABILITY REPORT

27

Social, continued

Hurricane Harvey Relief
When Hurricane Harvey smashed into
Houston and the Texas Gulf Coast Region,
it was taking on the Company’s hometown
and its neighbors. Halliburton partnered withlocal organizations, helping through donations
and providing volunteer assistance.
For example, Buckner International, a charitythat serves children, families and seniors, isa long-time Halliburton community partner.
When more than 90 people at the Buckner
facility in nearby Beaumont were strandedby ﬂoodwaters, they turned to Halliburton.
Halliburton employees quickly dispatched
two buses to the Buckner Center, along witha team of volunteers, to accomplish
the evacuation.
When crowds of ﬂooded-out families arrived
at the Buckner Family Hope Center in Aldine,
located near the Halliburton North Belt facility,
supplies donated by Halliburton employees
were waiting for them. Later, Halliburton
volunteers worked with Buckner families tobegin the grueling process of cleaning up.
Halliburton also provided assistance tomore than 250 employees to help in theirrecovery efforts. The Halliburton Disaster
Relief Grant fund distributed more than$430,000 in relief funds.
On a broader scale, the proceeds from theannual Halliburton Charity Golf Tournament
went to more than 24 organizations, including
many Houston-based charities that have been
applying the donations to Hurricane Harvey
recovery efforts.

As an industry leader, Halliburton is well
represented on industry bodies that set
standards and guide best practices. In 2017,
Company collaborations included:
•
•
•
•
•
•
•
•

•
•
•
•
•

•
•

•
•
•

Senior management, our Investor Relations
team and operational managers hold regularmeetings and conference calls with analysts,
institutional investors and others. In 2017,
Halliburton executives made presentations,participated in panels, or had other key rolesat the following events:
•

•
•

•

•
•
•

•
•

•

28

American Petroleum Institute
Bilateral U.S.–Arab Chamber of CommerceCenter for Offshore Safety
Colorado Oil and Gas Association
Greater Houston Partnership
Houston Technology Center
Houston World Affairs Council
Independent Petroleum Associationof America
National Association of Manufacturers
National Foreign Trade Council (U.S.)
National Ocean Industries Association
Offshore Energy Center
Petroleum Equipment & Services
Association
Society of Petroleum Engineers
Texas Independent Producers and Royalty
Owners Association
U.S. Oil and Gas Association
Western Energy AllianceWorld Petroleum Council

Bank of America Merrill Lynch
Global Energy Conference
Barclays CEO Energy Power Conference
BMO 2017 Global Energy
Leadership Forum
Citi 2017 Global Energy andUtilities Conference
Deutsche Bank Energy Conference
Jefferies Energy Conference
Morgan Stanley E&P and
Oil Services Conference
RBC Global Energy Conference
Scotia Howard Weil 2017
Energy Conference
Simmons & Company 17th Annual
Energy Conference

•

•

•
•

•

Simmons & Company 2017
European Conference
Susquehanna Energy andIndustrials Conference
UBS Global Oil & Gas Conference
Wells Fargo 2017 West Coast
Energy Conference
Wolfe Research Oil & Gas
Leaders Conference

HUMAN RIGHTS

Halliburton and its Board of Directors support
universal human rights as deﬁned by theUnited Nations Universal Declaration of
Human Rights. We respect the sovereignty
of governments throughout the world andwe believe it is the primary responsibility of
local government to safeguard and protect
the basic human rights of their citizens.
Halliburton operates in approximately
70 countries around the world. Our
stockholders, customers, suppliers andemployees represent virtually every race,
national origin, religion, culture, politicalphilosophy and language. This diversity isfundamental to our business excellence andembodies our Company’s respect for humanrights and the dignity of all people.
SECURITY

The safety of our employees, contractors
and facilities is paramount, and coincides
with our respect for human rights and the
security of local communities. Our highstandards of safety require the use of thirdparty armed security in a small minority of
the countries where we operate. Halliburton
makes signiﬁcant efforts to ensure that thesesecurity providers uphold our strong standardsof ethics and integrity. The countries, the typeof security provider, and the training provided
are listed on the following page. All third-party
security providers are required to ensure that
security personnel complete all necessary
training, and to have procedures in place toensure compliance with our COBC.

Health, Safety and Wellness
Health and safety performance andthe overall well-being of our employees
are material sustainability topics for
Halliburton. Safety is one of our corevalues, and is of fundamental importanceto our operations. Health and safety
management, programs and performanceare discussed in the context of ourJourney to ZERO strategy on pages
8 to 11 of this report.

Well-being Program Case Study

Malaysia
Type of Security:
Auxiliary Police
Training:
Malaysia Police training
Nigeria
Type of Security:
PoliceTraining:
Nigeria Police training

In addition to our commitment to safety,
Halliburton maintains a global program
to ensure the health and well-being of its
employees. The program’s mission is toincrease awareness and create opportunities
for employees and their families to takeownership of their health and ﬁnances.
The initiative focuses on ﬁve key elements:
•
•
•
•
•

Nutrition
Physical health
Emotional health
Financial wellness
Community involvement

Security and Training by Country

Iraq
Type of Security:
Private Contractor and Police
Training:
Voluntary Principles on Security and
Human Rights, Montreux Document; regularﬁrearm and executive protection training
Iraqi Police – Iraq Police training
Pakistan
The Halliburton Charity Color Run andWalk beneﬁtting the American Heart
Association (AHA) Go Red For Women
campaign was held at the Halliburton
North Belt Campus in Houston in March2017. Hosted by the Halliburton Charitable
Foundation, the event raised more than
$32,000 for the AHA. Everyone who
participated took to heart the idea ofgoing red – and yellow, orange, purple,
pink and green.
Lining the courses of the 5K (3.1-mile)
run and the 2.9K (1.8-mile) walk were
volunteers who were assigned the taskof hurling handfuls of colored cornstarchat participants running and walking by.
In total, volunteers threw over 1,100
pounds of colored cornstarch at the
1,200 participants.
More than a dozen of our top leaders took
part in the Executive Colorpalooza after
the run and walk concluded. For this event,executives were rounded up into a special
lineup to receive a colorful (and mostly
friendly) dusting from folks who made an
extra donation for the opportunity.

Type of Security:
Private Contractor
Training:
Weapons handling, basic guard duties,
incident reporting
AngolaType of Security:
Local Private Contractor
Training:
Government-certiﬁed and private contractor
ﬁrearm training center
Kenya
Type of Security:
Kenyan National Police
Training:
Kenyan Police training
Venezuela
Type of Security:
National Guard
Training:
National Guard training

The mission of the American Heart
Association is to wipe out the No. 1 killerof both women and men worldwide, andHalliburton is deeply proud to support
their efforts. Our commitment to the
AHA is an integral part of our efforts tofoster the wellbeing of our employees
and our communities.

HALLIBURTON 2017 SUSTAINABILITY REPORT

29

Environment

MATERIAL TOPICS – ENVIRONMENT••

Energy and Greenhouse Gases
Environmental Stewardship

The long-term success of Halliburton is dependent on
industry-leading environmental performance in our operations
and effective stewardship of natural resources.
Halliburton strives to continuously improve our environmental
impacts. We achieve this by focusing on minimizing theenvironmental footprint of our operations, and by providing
the products and services that enable our customers to do
the same.

30

We reduced
overall spill
volumes by
29 percent
year-on-year
to achieve a
3-year low.

106
tons

We reduced
the greenhousegas emissions
intensity of
our operations
to 106 tons
per million
dollars ofrevenue,a decreaseof 18
percent.

PERCENT
Halliburton
makes available
chemical safety
information in
37 languages.

37

Halliburton also works to provide global
energy solutions that go beyond conventionalenergy sources. We are leading the ﬁeld in
geothermal energy and in carbon capture andstorage, and we have been service providers
in these areas for decades.

HALLIBURTON 2017 SUSTAINABILITY REPORT

2,183

156

130

106

15

16

17

15

16

17

■ Indirect Emissions■ Direct Emissions

EnergyConsumption
thousand GJ

26,890To address the environmental impact ofour global real estate, sites are designed
and built to Leadership in Energy andEnvironmental Design (LEED) standards.
Several of our key sites, including our main
Houston location, known as the North Belt
campus, hold current sustainable building
certiﬁcations. All of these certiﬁcations asof the end of 2017 are listed on page 33.

Energy consumption and greenhousegas emissions are major components ofour environmental footprint. We strive to
reduce these aspects of our overall impact
through improving the efﬁciency of ourown operations, and by offering products
and services to our customers that enable
them to maximize the value of their assets
while using less energy and generating
fewer emissions.

Emissions
Intensity
metric tons
CO2e permillion U.S.
dollars revenue

2,060

Energy consumption is a material
sustainability topic for Halliburton, andmaximizing energy efﬁciency is central to ourefforts to reduce the environmental footprintof our operations. We achieve this throughoperational efﬁciency in our manufacturing
and ﬁeld operations, through sustainable
design and construction of our facilities,
and by developing sustainable products
and services for our customers.

One element in this effort has been ourleadership in the deployment of diesel
engines that meet the U.S. Environmental
Protection Agency Tier 4 standard. The Tier 4
standard sets stringent requirements for
non-road diesel engines to lower emissionsof particulates, nitrogen compounds andother pollutants by as much as 90 percent.
We work directly with engine manufacturers
and invest in research and development
to reduce emissions from the equipment
we design, manufacture and use. Today,
Halliburton surface equipment is among
the cleanest available, and it comprises
the largest ﬂeet of Tier 4-compliant diesel
engines currently in operation in the U.S.
and Gulf of Mexico.

Absolute
Emissions
thousand metrictons CO2e

3,690

ENERGY

Halliburton is continually working to reducethe impact of emissions to air that result
from our activities, and to reduce greenhousegas emissions across our operations.

25,686

Energy consumption and greenhouse gas(GHG) emissions are major components ofour environmental footprint. We strive to
reduce these aspects of our overall impact
through improving the efﬁciency of ourown operations, and by offering products
and services to our customers that enable
them to maximize the value of their assets
while using less energy and generating
fewer emissions.

GREENHOUSE GASES

45,520

Energy andGreenhouse Gases

15

16

17

Halliburton greenhouse gas emissions
increased by 6 percent in absolute terms year
on year in 2017; this is primarily driven byincreased operational activity in the year.
Continuous improvement in operational
efﬁciency enabled the Company to reduce
emissions intensity in 2017, with emissions
per million dollars of revenue down by
18 percent on 2016 to 106 metric tons.
Our primary source of GHG emissions isdiesel use in equipment in the ﬁeld. The
improvement in emissions intensity seen
in 2017 is predominantly the result of greater
fuel efﬁciency in our equipment ﬂeet, andimprovements in the efﬁciency of asset
utilization to generate revenue.

■ Electricity■ Fuel31

Approximately 123,000 safety data sheets and labels in 37 languages
are available through our website.

Environment, continued

1,174

1,924

Water
Consumption
thousand m3

2,036

160,313373,870814,508

Waste Data
tons

Environmental Stewardship
Environmental stewardship is anexpression of the Company’s commitment
to reducing environmental impacts
across the value chain, including thedirect impacts of our own activities. The
environmental aspects discussed in thissection include water, waste, spills and our
global chemical stewardship processes.
ENVIRONMENTAL PERFORMANCE

15

16

17

15

16

17

■ Hazardous
Waste■ Non-Hazardous
Waste

32

0.03

0.04

0.04

Recordable
Environmental
Incident Rateper 200,000
hours worked

15

16

17

Waste generated by Halliburton decreased
by 57 percent from 2016 to 2017. This is
primarily the result of the business returning
to more normal levels of waste generation
relative to operational activity following theexceptionally high waste generation seen
through the industry downturn in 2015 and2016. The exceptionally high waste levels
seen in the previous two years resulted
from Halliburton rationalizing inventory,
assets and our real estate portfolio to match
operational activity. Waste reduction efforts
and continuous improvement projects acrossthe global business have also impacted
waste generation and disposal methods.
As a result of these efforts, the percentage
of waste disposed by landﬁll or incineration
has fallen from 68 percent in 2016 to
38 percent in 2017.

Water consumption data covers our ﬁxed
facilities and excludes ﬁeld operations
as water use in the ﬁeld, for example inhydraulic fracturing, is typically suppliedand managed by our customers. There
has been a 64 percent year on year increasein consumption in 2017 compared to 2016.
Of this, 10 percentage points are attributable
to improved data coverage in Latin America
which enabled us to include the full impactof our water consumption in that region.
The remaining increase was driven by an
uplift in operational and manufacturing
activity as a result of growth in the North
America land market.
Our recordable environmental incident rate
(REIR) in 2017 is 0.04 incidents per 200,000
working hours, the same as in 2016. Total spill
volume decreased by 29 percent from 2016
to 2017 because of improved controls.
CHEMICAL STEWARDSHIP

Chemical Stewardship plays a key role atHalliburton in our overall commitment tosustainability and the management of the
HSE aspects of the products and services
that we provide to our customers worldwide.
Our Chemistry Scoring Index (CSI) is a risk
assessment process that compares therelative risks associated with the use ofHalliburton chemical products in oil and gas
operations. Scores are assigned to products
and ranked on the severity of their potential
hazards in several key HSE categories. The
CSI is aligned with the hazard determination
principles of the United Nations Globally
Harmonized System of Classiﬁcation andLabeling of Chemicals (GHS) and with otherinternational regulatory standards.

17

$46.5

16

$42.7

15

HSE Fines
and Penalties
U.S. $1,000$552.8142

All Halliburton chemical products arebacked by Safety Data Sheets (SDS) which
comply with the latest regulatory requirements,
including GHS. Our SDS identify the chemical
content of our products and their potential
health and environmental hazards. Halliburton
publicly discloses the information about thechemicals used in our operations, providing
a value-added resource for customers,
employees, regulators and the communities
in which we operate. Approximately
123,000 SDS and labels in 37 languages
are available through our website.

Total Volumeof Spills
cubic meters

199

Environment Case Study

907

Using the CSI, our customers cancompare Halliburton chemical products
within the same class of use and application,
enabling them to choose those productsthat optimize performance and minimize
potential HSE risks.

15

16

17

Sustainable Building Awards
LEED – Gold
Houston North Belt – Life Center
LEED – Silver
Houston North Belt – Child Care Center
Houston North Belt – Plaza 1
Houston North Belt – Plaza 2
Houston North Belt – Technology Center
Houston North Belt – Administration Building
LEED – Certiﬁed
Halliburton worked with the conservationgroup Monarch Rescue to restore anddonate several sites in North Carolina
for Monarch butterﬂy conservation.
The locations were acquired by Halliburton
as part of a company acquisition and,after a thorough assessment by our
Global Environment team, were foundto be suitable for restoration as pollinatorand butterﬂy habitat.

Rio de Janeiro – Technology Center
GreenMark Gold
Singapore – Facility 3

Over the course of the project, Halliburton
will donate a total of 529 acres of land
to the Southern Appalachian Highlands
Conservancy. Following donation, theland will be restored to meadowland, andplanted with milkweed and other plants
to support native pollinator and Monarchbutterﬂy populations.

HALLIBURTON 2017 SUSTAINABILITY REPORT

33

Environmental &Social Data
2017

2016

Energy Consumption (GJ)
Fuel Consumption
DieselCoal
Natural Gas
Other
Electricity Consumption
Total

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

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

Greenhouse Gas Emissions (TCO2e)
Direct (Scope 1)
Indirect (Scope 2)
Indirect (Scope 3)
Total

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

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

ENVIRONMENTAL DATAGreenhouse Gas Emissions Intensity (TCO2e/$M Revenue)
Scope 1, 2 and 3

106

130

Waste Disposal (Metric Tonnes)
Non-hazardous
Hazardous
Total

89,89670,417160,313

269,880
103,990373,870

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

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

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

Water Consumption (m3)
Total

1,924,248

1,174,058

0.04
142

0.04
199

1
0
1

6
1
7

0.12
0.36
0.33

0.10
0.37
0.30

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

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

Procurement ($M)
Spend with Small and Diverse Suppliers

937

615

Business Ethics
Code of Business Conduct Reports

180

139

Spills and Discharges
REIR (Incidents per 200,000 hours worked)
Total Volume of Spills (m3)

SOCIAL DATA
Fatalities
Employee
Contractor
Total
Injuries and Process Safety Incidents
LTIR (Incidents per 200,000 hours worked)
TRIR (Incidents per 200,000 hours worked)
RVIR (Incidents per million miles traveled)
Charitable Giving ($’000)
In-kind Donations
Halliburton Foundation
Employee Giving
Corporate Giving
Total

34

GRI G4
Content Index
PAGE NUMBER

PAGE NUMBER

STRATEGY AND ANALYSIS
G4–1
G4–2

CEO statement
Provide a description of the key impacts, risks and opportunities

G4–3
G4–4
G4–5
G4–6
G4–7
G4–8
G4–9
G4–10
G4–11
G4–12
G4–13
G4–14

G4–16

Name of the organization
Primary brands, products and services
Location of the organization’s headquarters
Countries of operations
Nature of ownership and legal form
Markets served
Scale of reporting organization
Employee headcount data
Percentage of employees covered by collective bargaining agreements
Supply chain description
Signiﬁcant changes during the reporting period
Report whether and how the precautionary approach or principle
is addressed by the organization
Externally developed economic, environmental and social charters,
principles and other initiatives
Association memberships

G4–17
G4–18
G4–19
G4–20
G4–21
G4–22
G4–23

Entities included in the organization’s consolidated ﬁnancial statements
Process for deﬁning the report content and the aspect boundaries
Material aspects identiﬁed
Aspect boundary within the organization
Aspect boundary outside the organization
Effect of restatements
Signiﬁcant changes from previous reporting periods

GOVERNANCE, COMMITMENTS AND ENGAGEMENT
P. 2
P. 2–5, 17–19

ORGANIZATIONAL PROFILE

G4–15

G4–36
P. 3
P. 3
Inside Back Cover
P. 3
Inside Back Cover
P. 3
P. 3
P. 3
P. 19
P. 22–23
Inside Back CoverP. 4–5, 6–7, 8–11
P. 5, 26–28
P. 28

IDENTIFIED MATERIAL ASPECTS AND BOUNDARIES
Inside Back Cover
Inside Back Cover
4–5
Inside Back Cover
Inside Back Cover
Inside Back Cover
Inside Back CoverSTAKEHOLDER ENGAGEMENT
G4–24
G4–25
G4–26
G4–27

Stakeholder groups engaged by the organization
Basis for identiﬁcation and selection of stakeholders with whom to engage
Approaches to stakeholder engagement
Key topics and concerns that have been raised
through stakeholder experience

P. 4–5, 26–28
P. 4–5, 26–28
P. 4–5, 26–28
P. 4–5, 26–28

REPORT PROFILE
G4–28
G4–29
G4–30
G4–31
G4–32
G4–33

Reporting period
Date of previous report
Reporting cycle
Contact point for questions regarding the report
In accordance option chosen
External assurance

G4–34
G4–35

Inside Back Cover
Inside Back Cover
Inside Back Cover
Inside Back Cover
Inside Back Cover
Inside Back Cover

G4–37
G4–38
G4–39
G4–40
G4–41
G4–42

G4–43

G4–44
G4–45
G4–46

G4–47
G4–48
G4–49
G4–51
G4–52

Governance structure of the organization
Process for delegating authority for economic,
environmental and social topics
Appointment of an executive-level position with responsibility
for economic, environmental and social topics
Processes for consultation between stakeholders and thehighest governance body to the highest governance body
Composition of the highest governance body and its committees
Report whether the Chair of the highest governance body isalso an executive ofﬁcer
Nomination and selection processes for the highest governancebody and its committees
Conﬂicts of interest
Development, approval, and updating of the organization’s
purpose, value or mission statements, strategies, policies,and goals related to economic, environmental and social impacts
Measures taken to develop and enhance the highest governancebody’s collective knowledge of economic, environmental
and social topics
Processes for evaluating the board’s performance
Board’s role in the identiﬁcation and management of economic,
environmental and social impacts, risks, and opportunities
Board’s role in reviewing the effectiveness of the organization’srisk management processes for economic, environmental andsocial topics
Frequency of the board’s review of economic, environmental andsocial impacts, risks, and opportunities
Reviews and approval of the sustainability report
Process for communicating critical concerns to thehighest governance body
Remuneration policies for the board and senior executives
Process for determining remuneration for the board andsenior executives

P. 17–19
P. 17–19
P. 17
P. 17
P. 17–18
P. 17
P. 17
P. 17–19

P. 4–5, 17–19

P. 17
P. 17
P. 4–5, 17–18

P. 17–19
P. 17
P. 17
P. 17
P. 18
P. 18

ETHICS AND INTEGRITY
G4–56
G4–57
G4–58

Values, principles, standards and norms of behavior
Internal and external mechanisms for seeking advice on
ethical and lawful behavior
Internal and external mechanisms for reporting concerns
about unethical or unlawful behavior

P. 17–19
P. 17–19
P. 17–19

SPECIFIC STANDARD DISCLOSURESECONOMIC
G4–EC1
G4–EC9Direct economic value generated
Proportion of spending on local suppliers

G4–EN3
G4–EN8
G4–EN15
G4–EN16
G4–EN18
G4–EN19
G4–EN23
G4–EN24
G4–EN27

Energy consumption
Total water withdrawal
Direct greenhouse gas emissions (Scope 1)
Indirect greenhouse gas emissions (Scope 2)
Greenhouse gas emissions intensity
Reduction of greenhouse gas emissions
Total weight of waste by type and disposal method
Total number and volume of signiﬁcant spills
Initiatives to mitigate environmental impacts ofproducts and services

P. 20–23
P. 23

ENVIRONMENTAL
P. 31
P. 32
P. 31
P. 31
P. 31
P. 31
P. 32
P. 32
P. 8–11, 12–13, 30–33

LABOR RIGHTS
G4–LA6
G4–LA9
G4–LA10
G4–LA11

Rates of injury, occupational diseases, lost days, fatalities
Average hours of training per year per employee by gender,
and by employee category
Programs for skills management and lifelong learning
Percentage of employees receiving regular performanceand career development reviews

P. 8–11
P. 21
P. 20–22
P. 21–22

HUMAN RIGHTS
G4–HR7

Security personnel trained in the organization’s human rights policies

P. 28

SOCIETY
G4–SO4G4–SO8HALLIBURTON 2017 SUSTAINABILITY REPORT

Communication and training on anti-corruption policies and procedures
Monetary value of ﬁnes and penalties

P. 17–19
P. 33

35

United Nations Sustainable
Development Goals Mapping
The United Nations Sustainable Development Goals (SDGs) were adopted by the global
community in 2015. In 2017, Halliburton undertook an exercise to map our material
sustainability topics and relevant metrics to the SDGs, in order to assess our alignment
with the priorities of policymakers and other stakeholders. The results of this exercise areshown in the table below.

HALLIBURTON MATERIAL TOPICSUNITED NATIONS SUSTAINABLE
DEVELOPMENT GOALSHALLIBURTON KEY PERFORMANCE INDICATORS

16. Peace, justice and strong institutions• Hours of training on anti-corruption andEconomic
Corporate governance and business ethics

Code of Business Conduct
Economic performance

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

Supply chain sustainability

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

SocialHealth, safety and wellness

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

Diversity and inclusion

Community engagement

5. Gender equality
8. Decent work and economic growth• Percentage of localization of workforce• Spend with small and diverse suppliers

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

7. Affordable and clean energy
13. Climate action• Energy consumption• Percentage of localization of workforce

Environment
Energy and greenhouse gases• Greenhouse gas emissions• Greenhouse gas emissions intensity

Environmental stewardship

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

• Water use• Recordable Environmental Incident Rate
• Spill volume• Waste generation and recycling rate

36

ReportInformation
Halliburton is a publicly traded corporation
registered in Delaware and headquarteredin Houston, Texas. There were no signiﬁcantchanges to the structure or ownership of
the Company in 2017.
In this report, the data encompasses
all of our product service lines, countries,
joint ventures and non-wholly-owned
subsidiaries.
This report contains descriptions ofour 2017 sustainability initiatives.
Wherever possible, assessments ofperformance trends from 2015 to 2017
are provided to better highlight the trends’
signiﬁcance over time. Topics covered inthis report are those most pertinent to ourbusiness sector, and they arise from thecontext and expectations of the sector.
Our analysis of the materiality of topics
is described on page 5.

The boundaries of this reportcorrespond to those of the 2017
Halliburton Annual Report.
The data included in this report comefrom the Company’s ofﬁcial management
and reporting systems for the various
functions described in this document.
No external assurance has been soughtfor the contents of this report.
The 2017 Corporate Sustainability
Report was drafted in accordance with
the Core Requirements of the Reporting
Guidelines of the Global Reporting
Initiative, Version G4.

PREVIOUS REPORTS

2016 Sustainability Report
Calendar Year 20162015 Sustainability Report
Calendar Year 2015
Big Vision
Calendar Year 2014
What Moves Us
Calendar Year 2013
Look Beneath the Surface
Calendar Year 2012
Report Parameters
Reporting period:
Calendar Year 2017
Published date of previous report:
March 2017
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
Halliburton
3000 N. Sam Houston Parkway E
Houston, Texas 77032
United States
Email:
sustainability@halliburton.com

281.871.2699
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