Corporate Sustainability Report 2022

People First. Energy Forward.

About this report
Accessibility and usability
This report delivers enhancements designed to
improve usability:• Audio features narrate the report for the visually
impaired, readers with dyslexia, or other reading
impairments. The expansion of the color palette
supports accessibility for visually impaired readers.
• QR codes provide access to closed captioned
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the deaf and hard of hearing communities.
Reports and policies:
Our archived reports and policies are accessible on
our website.

On the cover: Manufacturing Shop Operators in Industrial &Energy Technology, Florence, Italy

From the left: Lorenzo Giaccari, Giulia Rovai, Fadia Mansouri,
Eleonora Smorti, Nosa Bill Izekor

Our frameworks
Our sustainability report is prepared using the
Global Reporting Initiative’s (GRI) Standards andthe Greenhouse Gas Protocol (GHG Protocol) as thefoundation of our report. We also provide reporting
indices for the Task Force on Climate-Related
Financial Disclosures (TCFD) and the Sustainable
Accounting Standards Board (SASB) Oil & Gas
Services Industry Standard–Extractives & Minerals
Processing Sector.

Who we are

We are an energy
technology company.

Our purpose

We take energy forward–
making it safer, cleaner, andmore efficient for people andthe planet.

Sustainability vision

To be a sustainable pioneerin everything we do,
positioning Baker Hughes as
the future energy technology
company of choice.

Our values
Grow
See challenge as opportunityand learn every day.
Collaborate
Inspire, be inclusive, and bringout the best in each other.

Lead
Make, invent, and performwith impact.
Care
Do the right thing, always, for ourcustomers, our people, and theenvironment.

Table of contents

A letter from our Chief Executive Officer 6
A letter from our Chief
Sustainability Officer

2022 by the Numbers

10

Figure 1-1:

11

Business segments performance

About Baker Hughes
Table 2-1:

Direct and indirect economic
impacts (million USD)

Sustainability at Baker Hughes
Figure 3-1:

4

8

14
17

24

Sustainability strategy driven bycross-functional engagement andbest practice26

Figure 3-2:

Our strategy framework

27

Figure 3-3:

Materiality assessment

29

Baker Hughes

People34

Figure 4-1:

Total employees by region

37

Figure 4-2:

Employees by gender, age, seniority,and job function
37

Figure 4-3:

Voluntary attrition

42

Figure 4-4:

New hires

43

Figure 4-5:

Reimagine Recruitment highlights

43

Figure 4-6:

Our employee value proposition

43

Table 4-1:

Percentage of employees receiving
annual performance and careerdevelopment review
44

Figure 4-7:

Employees receiving annual
performance and careerdevelopment review

44

Table 4-2:

Leadership program participation

47

Figure 4-8:

Our leadership programs

47

Table 4-3:

Average hours of training

48

Figure 4-9:

Women at Baker Hughes

50

Table 4-4:

Diversity snapshot

50

Figure 4-10: Employee resource groups

51

Table 4-5:

Community contributions

54

Figure 4-11:

Increasing our volunteer
engagement

54

Figure 4-12:2022 Renew highlights

57

Planet58

Figure 5-1:

Total scope 1 and 2 emissions
by year62

Table 5-1:

Scope 1 and 2 emissions by year

62

Table 5-2:

Scope 1 emissions breakdown

62

Figure 5-2:

Total electricity used in 2022

63

Table 5-3:

Energy use by category

63

Figure 5-3:

Number of product life cycle
assessments 2021 v. 2022

65

Table 5-4:

Scope 3 emissions

67

Figure 5-4:

Waste volume

71

Table 5-5:

Waste volume

71

Table 5-6:

Waste diverted from disposal byrecovery operation

71

Table 5-7:

Waste prevented from disposal

71

Table 5-8:

Waste directed to disposal bydisposal operation

71

Table 5-9:

Water use73

Table 5-10:

Water use in water-stressed areas

73

Table 5-11:

Water conservation andmanagement assessment

75

Table 5-12:

Spill volume79

Principles
Figure 6-1:

Appendix

80
Board of Directors oversightof environmental, social andgovernance matters

89

98

Baker Hughes

5Lorenzo Simonelli

Chairman, President, andChief Executive Officer

Last year, the global energy map was
redrawn, resulting in a complex energy
market and a challenging macro
environment. There was a renewed focus
on energy security, sustainability, andaffordability – “the energy trilemma”and balancing the pace of energy
transition. These forces have presented
an opportunity for Baker Hughes to help
our customers on their sustainability
journeys and allow us to renew our focus
on operational excellence to bettersupport the needs of the energy industry
well into the future.

6

Baker Hughes

In 2022, we continued to accelerate
our business strategy to fully capitalizeon the opportunities that lie ahead,
drive increased shareholder value, andbuild a world-class energy technology
company. In September 2022, weannounced a strategic transformationfor Baker Hughes by restructuring into
two simplified business segments– Oilfield Services & Equipment andIndustrial & Energy Technology – offering
an integrated portfolio of solutions that
we believe are best served for energy
and industrial customers. We believethat focusing on these two businessareas will better position our Company
by enhancing flexibility, improving
commercial and operational execution,and providing long-term optionality.

Our realignment and strong progress
were underpinned by our sustainability
strategy. Our vision is to be a sustainablepioneer in everything we do, positioning
Baker Hughes as the energy technology
company of choice. Through our existing
corporate sustainability framework –known as People, Planet and Principles –we have continued to support the United
Nations (UN) Sustainable Development
Goals (SDG) and to move beyond
pledges to weave sustainability moredeeply in our culture. We are taking
action to advance our net-zero journey,
and I am proud of our accomplishments
since first setting our net-zero emissions
reduction pledge in 2019. Together, ourbusiness and sustainability strategies
empower us to take energy forward- making it safer, cleaner, and more
efficient for people and the planet.

TOC | Letters | By the Numbers | About Baker Hughes | Sustainability | People | Planet | Principles | AppendicesOur strategic transformation in
2022 highlights sustainability as
one of our core differentiators

PeoplePlanetPrinciples

Our talented people continued to
be industry-leading subject matter
experts, taking energy forward in themost sustainable way. People are at
the heart of taking energy forward,
and we strengthened our employee
value proposition to attract the besttalent from around the globe to leadin the energy transition. I am proud of
the recognition that we achieved thisyear for our collaborative learning anddevelopment programs, as well as ourdiversity, equity, and inclusion initiatives.
We increased our contributions to thecommunities where we operate, aspart of our charitable giving, further
demonstrating how our actions continue
to drive our progress and impact.

We continue to pioneer low- to zerocarbon energy solutions for ourcustomers and minimize our own
operational footprint. Since we firstmade a commitment to achieve netzero carbon dioxide equivalent (CO2e)emissions by 2050, we have achieved
a 28% reduction in our scope 1 andscope 2 emissions in 2022, comparedto our 2019 baseline year. We remaincommitted to emissions reduction, buthave also set new, ambitious internal
targets to reduce our scope 3 emissions,embed circularity into our products’
lifecycles, and preserve biodiversity in
our areas of operation.

Our culture is built on health and safety,
compliance, integrity, and quality. We
remain steadfast in upholding thehighest standards in these areas. We
have taken proactive and preventative
measures to protect our employees
and foster a culture guided by theseprinciples.
I am confident in our ability to advanceour sustainability journey and proudof our accomplishments this year. We
continue to put our people first, minimize
our environmental impact, and drive astrong culture of integrity and safety insupport of a sustainable future.

Lorenzo Simonelli

Chairman, President, and Chief
Executive Officer

TOC | Letters | By the Numbers | About Baker Hughes | Sustainability | People | Planet | Principles | Appendices

Baker Hughes

7Delivering value with a sustainable,collaborative culture

At Baker Hughes, sustainability means
operating in a principled way to minimize
environmental impact and maximizesocial benefits by providing affordable,
sustainable, and secure energy forpeople and the planet. We do this forourselves and our customers.
Even in the wake of a global energy
security crisis, ongoing geopoliticalconflict, and shifting markets weremained deeply committed tooperating in a responsible andsustainable way. Across our business,sustainability has been a key lever,transforming the performance of ourCompany and our industry.

Assessing our key strategic priorities
We conducted a detailed materiality
assessment – an important listening
exercise from our internal and external
stakeholders – to strategically align on
key priorities with the highest business
impact and stakeholder importance, toguide our sustainability strategy, while

8

Baker Hughes

mitigating potential risk. This biennial
assessment helped to inform ourstrategic priorities while providing an
opportunity for deep engagement with50+ key internal stakeholders.
Our work was foundational in developing
strategic priorities that support ourcommercial strategy through moresustainable operations.

Turning risks into opportunities
With climate change as an increasing risk
to our Company and the world, we worked
to identify physical and transition risks to
our Company throughout our value chain.
In 2022, we expanded our quantitative
climate change scenarios andincorporated this analysis into our midand long-range planning. In addition,
our innovative portfolio of technologies
and solutions in carbon abatement,along with clean power generation,energy efficiency and electrification,offer us a key competitive advantage in a
climate-constrained world.

All In. Carbon Out.
Launched in 2021, Carbon Out is acompany-wide initiative to take CO2eout of our operations and meet ourpledge to achieve net zero by 2050.
This program — which provides tools,a framework, funding, and resources— has empowered our people tosystematically contribute to reducing
our CO2e emissions and focus on moresustainable operations.
In 2022, we expanded our internal
Carbon Out network to focus on
identifying and funding projects thatwill reduce our CO2e emissions. These
projects are key to achieving our carbon
reduction commitments and reducing
our environmental impact throughout
our entire business. We continued toadvance our understanding of our value
chain emissions and set an internal
scope 3 emissions reduction goal.

TOC | Letters | By the Numbers | About Baker Hughes | Sustainability | People | Planet | Principles | AppendicesAllyson Anderson Book
Chief Sustainability Officer

Transparency and quality of data

Progress powered by our people

As one of the first energy companies tomake a public net-zero commitment,
it is crucial for Baker Hughes to model
leadership in sustainability performance.
We continuously improved how we track,
measure, govern, control, and report
our sustainability performance data.
We expanded the reach of our data
controllership consistent with the bestaccounting practices. In addition, we
expanded the third-party assuranceof our sustainability metrics this year,
which included reasonable assuranceof all scope 1 and 2 CO2e emissions andlimited assurance of our scope 3 CO2eemissions, waste, and human capital
metrics.

Getting to a lower-carbon state asa society is perhaps the existential
challenge of our time, and we believethat it will be driven by our people.
Throughout this report, you will readabout how our employees continue
to live through our values to be moresustainable - whether to support
diversity and inclusion, taking carbon
out of our operations, or volunteering forenvironmental causes.
The efforts of our employees have notgone unrecognized, as the Company
and individuals received numerous
industry recognitions and sustainability
awards in 2022.

In the spirit of inclusion, one
achievement I am particularly proudof this year is making this sustainability
report easier to access by readers of allabilities. We have been intentional about
putting people first and ensuring no one
is left behind. Through the use of visual
aids, special colors, designs, and closed
captioning for any linked audiovisualcontent, this report will be accessible tothose hard of hearing, deaf, or visually
impaired.
We trust you will find this year’s report
informative and easy to follow. If
you have questions or comments
about our reporting or our approachto sustainability, I encourage you toreach out to me or a member of ourleadership team.

Allyson Anderson Book
Chief Sustainability Officer

TOC | Letters | By the Numbers | About Baker Hughes | Sustainability | People | Planet | Principles | Appendices

Baker Hughes

92022 by the numbers
Economic impact$21.2B
Revenue$26.8B
OrdersTechnology and innovation$556M

Spent on researchand development

2,200+
Patents granted$400M+New Energy orders

10

Baker Hughes

TOC | Letters | By the Numbers | About Baker Hughes | Sustainability | People | Planet | Principles | AppendicesFigure 1-1:

Business segments performance

Two business segments

OFE

OFS

TPS

DS

Oilfield Services &Equipment (OFSE)

Industrial & Energy
Technology (IET)

OFSE Segment — Revenue TY 22

IET Segment — Revenue TY 22
Gas Technology$3.9B
Well Construction$3.6B

Completions, Intervention
and Measurement$2.6B
Equipment$2.4B
Services

Industrial Technology$3.6B

Production Solutions$2.2B

Subsea & Surface
Pressure Systems

$0.5B

$1.0B

$0.8B

$0.6B

Condition Monitoring

Pumps, Valves, Gears

Inspection

Precision Sensors &Instrumentation

Marco Soldino | Massa Plant Testing Engineer, Industrial & Energy Technology

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Baker Hughes

112022 by the numbers

People~55K

Total employees,with more than
42,000 of ouremployees working
outside the U.S.

>150

Nationalities
represented

Planet28%

Reduction inscope 1 and 2 CO2eemissions from our2019 baseline

10

Scope 3 categories
reported with limited
assurance

26%

Electricity sourced
from zeroemission sources

57K+
Metric tons ofwaste recycled

Principles

217

Perfect HSE Days

100%

Enterprise security
personnel trained inhuman rights policies
or procedures

Greta Mandarino | Planner, Custom Stator Cell, Industrial & Energy Technology

12

Baker Hughes

TOC | Letters | By the Numbers | About Baker Hughes | Sustainability | People | Planet | Principles | AppendicesAwards & recognition

500 ESG Index in May
2022
The World’s Top
Female-Friendly
Companies 2022 byForbes - #209

#6 on Fortune's Modern
Board 25 list as one of
the most innovative
boards of directors
among S&P 500
companies.

#1 in Customers forEnergy Equipment &Services by JUST Capital

AA ESG rating

Best place to work by Ally
Energy GRIT Awards 2022

B rating

TOC | Letters | By the Numbers | About Baker Hughes | Sustainability | People | Planet | Principles | Appendices

Baker Hughes

13AboutBaker Hughes
16 Company overview
17 Strategy and vision
18 Our business transformation
19 Innovation and collaboration
20 Key acquisitions, investments, and partnerships
22 Our values and culture

14

Baker Hughes

TOC | Letters | By the Numbers | About Baker Hughes | Sustainability | People | Planet | Principles | AppendicesFadia Mansouri | Shop operator, Flow Machining Cell, Industrial & Energy Technology

TOC | Letters | By the Numbers | About Baker Hughes | Sustainability | People | Planet | Principles | Appendices

Baker Hughes

15

Design in P

“As the world faces the ‘energy
trilemma’ of achieving energy security,
affordability, and sustainability, weknow that Baker Hughes has a clear roleto play — our purpose of taking energy
forward, making it safer, cleaner, andmore efficient for people and the planet,
has never been more relevant.”
Lorenzo Simonelli
Chairman, President and Chief Executive Officer

Company overview
Baker Hughes Company (“Baker Hughes,” “the Company,”“we,” “us,” or “our”) develops and deploys technologies tohelp meet the world’s increasing demand for energy.
By harnessing the power of engineering, data, and science,
we are redefining what is possible and ushering in a
new era for energy.
As a company of global scale, local know-how andcommitment to service, we conduct business in over
120 countries. Our products and services serve the upstream,
midstream/liquified natural gas (LNG), and downstream
sectors of the oil and gas industry, as well as broader
chemical and industrial segments.

16

Baker Hughes

We deliver through our two business segments:
Oilfield Service & Equipment (OFSE) and Industrial &Energy Technology (IET). Our two business segments
are organized based on the nature of our markets
and customers and consist of similar products andservices and growth profiles. More detail can be foundon page 18.

TOC | Letters | By the Numbers | About Baker Hughes | Sustainability | People | Planet | Principles | AppendicesPerson name, and job

Progress

Strategy and vision
Baker Hughes is guided by our purpose
to take energy forward — making it safer,cleaner, and more efficient for people
and the planet. We recognize that our
products and services are essential tomeeting the world’s growing energy andindustrial needs now and in the future.
Our corporate strategy is focused ontransforming our core to strengthen ourcompetitiveness today, while investingfor growth and positioning for new
frontiers in the energy transition.
Through this framework, we willcontinue to build and execute a plan
to deliver sustainable value for ourshareholders and stakeholders basedon three key pillars:• Transform the core: Over the past two
years, we have been transforming ourcore product companies by improving
our core competitiveness – including
improving segment margins and cash
flow, while also adjusting our portfolio
to focus on higher return businesses.

Table 2-1:

• Invest for growth: As we build amore diversified energy and industrial
business with energy technology at its
core, we believe we are well positioned
to more aggressively pursue growth
in industrial sectors, including energy,
where we see more resilience andbetter operating performance. We
will leverage our existing strengths,
portfolio, and technology positions
to provide solutions to serve thesegrowth sectors.
• Position for new energy frontiers: As
the energy landscape continues tochange, we are evaluating the key
growth areas associated with energy
transition and where Baker Hughes
can capitalize on these opportunities.
We will pursue strategic bets thatleverage our core competencies
and expertise today, and where
we believe we can achieve a
differentiated position in the future.

In 2022, we developed a sustainability
strategy which underpins our broader
commercial strategy and serves as ourroadmap to embed people, planet, andprinciples into our business, positioning
Baker Hughes as the energy technology
company of choice.

Economic impact
We take our responsibility to power
global and local economies seriously.
As a provider of technology andservices, we are a critical part of theworld’s energy infrastructure, and webelieve in lowering barriers to accessing
clean, affordable energy for everyone,
everywhere.
Baker Hughes generated a direct
economic value of $21,156 million inrevenue in 2022. That economic value
was distributed to a wide variety of
global stakeholders as outlined in thechart in Table 2-1.

Direct and indirect economic impacts (million USD)
2020

2021

2022

Revenues$20,705$20,502$21,156

Operating costs$36,683$19,192$19,971

Payments to providers of capital 1$1,033$1,488$1,862

Payments to governments (net cash tax payments)

$441

$314

$498

Total charitable contributions

$119

$45

$75

1 Calculated as the sum of Dividends on Class A Shares, Distributions to GE, share repurchases, and Interest Payments.

TOC | Letters | By the Numbers | About Baker Hughes | Sustainability | People | Planet | Principles | Appendices

Baker Hughes17Our business transformation
As the world sought to rebalance energy supply, we
accelerated our corporate strategy and began simplifying ourstructure to better navigate the evolving market and capitalize
on emerging growth opportunities.
We have been transforming our solutions portfolio byexpanding our low-carbon technology portfolio and prioritizing
emissions abatement considerations in our corporate strategy.
Our strategy is not only focused on financial and operational
excellence. It is also heavily focused on sustainability
leadership to enable us to deliver on our promises.

From four product companies totwo business segments
In October 2022, we moved from four productcompanies to two business segments that drivea more simplified and focused organizational
structure. Our two business segments are organizedbased on the nature of our markets and customers
and consist of similar products and services andgrowth profiles.

Industrial & Energy Technology(IET)
Our IET organization brings together an incredible
amount of expertise, technologies, and services,
creating a portfolio of powerful technologies andsolutions. Our focus is on supporting industrial andenergy customers, driving industrial productivity,and enabling a reliable, efficient, net-zero energy
system.

Oilfield Services & Equipment(OFSE)In October 2022,
we moved fromfour productcompanies totwo businesssegments
18

Baker Hughes

The combination of Oilfield Services and Oilfield
Equipment into OFSE enhances our opportunity
to become the premier upstream partner forour customers. We continued to deepen andstrengthen customer relationships by bringing
together our products and services, offering morecomprehensive solutions aligned to their evolving
needs.
The complementary nature of our businesses
means that on day one, we have the scale toimpact the industry — and Baker Hughes’ results.
Together, our teams continue to create efficiencies
that improve the speed of decision-making,sharing, and scaling best practices across ourentire organization.

TOC | Letters | By the Numbers | About Baker Hughes | Sustainability | People | Planet | Principles | AppendicesInnovation andcollaboration

In 2022, we invested $556 million in

Innovation is foundational to our
purpose and is more important thanever in today’s dynamic market. Thanks
to the relentless passion and dedicationof our engineers, scientists, digital
experts, and inventors, we can proudly
say we are leaders not only in our
traditional OFSE markets, but also in the
IET space. To accelerate our progress,
we pursued innovation through in-houseresearch and development, as well as
external investment and collaborative
partnerships. We made strategic
investments in transformative solutions
that drive growth for Baker Hughes andour customers.

In OFSE, we continued to fund a range offormation evaluation capabilities, as wellas drilling, completions, and production
hardware. Our focus is expanding
capability into deeper water, longer
well offsets and at higher subsurfacepressures, as well as modular designs
that allow for simpler and more digitally
integrated well and field systems.

Our research and development
activities were directed primarily toward
the development of new products,
services, technology, and othersolutions, as well as the improvementof existing products, services, andthe design of specialized products
to meet specific customer needs.
We continued to invest across bothbusiness segments in products toenhance safety, develop capability,
improve performance, and reduce costsaligned with our operational strategy.
Through our Technology Centers, we
also invested heavily in fundamental
technologies such as materials, additive
manufacturing, sensing, artificial
intelligence/machine learning, andother digital technologies such as
computer vision, data science, andedge computing.

research and development and were
granted more than 2,200 patents

In IET, we continued to invest anddevelop foundational technologies thatenable a transition to a low-emission
global economy.
Such technologies include advanced
materials, advanced manufacturing
technologies, novel process
technologies, and digital technologies
such as advanced sensing anddiagnostics, data sciences, and artificial
intelligence. Within Gas Technology,
we focus on our latest generation ofgas turbines for energy efficiency andreduced carbon footprint such as
our LM9000 and Nova LT products, aswell as Allam Cycle turboexpander,
carbon capture, utilization, and storage(CCUS), and hydrogen and geothermal
technologies.
Within IET, we invested in advanced
digital solutions designed to improvethe efficiency, reliability, and safety ofoil and gas, aerospace, energy, andbroader industrial production andoperations. This includes our Orbit 60
Bently Nevada product for critical asset
monitoring in turbine systems, including

wind, hydro, and gas turbines. The IET
segment is enhancing its process andsafety valve business, bringing new
digital applications including analytics
to our customers. Investments also
include technologies to measure,monitor, and minimize CO2e emissions,
new inspection technologies for
nondestructive evaluation of materials
and structures, and solutions forindustrial asset management.
Many of our innovative products werehighlighted by industry leaders including
the European Geothermal Energy
Council (EGEC) and World Oil.

EGEC

Ruggero Bertani European Geothermal
Innovation Award 2022 — Corrosion
Resistant Podded Electrical Submersible
Pump and Completion System

World Oil Awards (Finalist)• Best Digital Transformation Award ProductionLink™ Edge Smart Artificial
Lift Automation Solution• Best EOR (enhanced oil recovery)
Technology Award - PermaFLO™ Solid
Inhibitor Particles• Best Oilfield Fluids and Chemicals
Award - DELTA-TEQ™ XT• Best Production Technology Award Sandstone Divert with Breaker D• Best Well Intervention Award X-treme™ WindowMaster™ Whipstock
System• New Horizons Idea Award - i-Trak™
Automated Reservoir Navigation
Service

TOC | Letters | By the Numbers | About Baker Hughes | Sustainability | People | Planet | Principles | Appendices

Baker Hughes19

As an energy technology company,
our vision is to be a sustainable pioneerin everything we do, positioning Baker
Hughes as the future energy technology
company of choice.
Key acquisitions,investments,
and partnerships
We continued to invest in advanced
technologies that augment our corebusiness offering. These acquisitions andinvestments have helped to drive nearterm growth in revenue and orders while
positioning us long-term to capitalize
on high-potential growth opportunities
across multiple markets. They also
ensure that we have the technologicalcapability to drive reductions of CO2e inthe energy and industrial sectors. Our
strategic investments and acquisitions
targeted emerging energy technologies
to advance CCUS, hydrogen, net-zero
power and e-fuels solutions.

Acquisitions• Qi2 Elements, a designer andmanufacturer of advanced robotic
sensor systems that inspect, assess,and monitor the integrity of criticalenergy infrastructure. Qi2 Elements
extended Baker Hughes asset
inspection technology offering acrossa wider range of critical customer
equipment, including pipelines andstorage tanks.

• AccessESP, a leading provider ofadvanced technology for artificial
lift solutions to further transform

20

Baker Hughes

core oil and gas operations by
reducing costs and downtime for
operators. AccessESP’s “GoRigless
ESP System” provides proprietary
solutions that enable an electricalsubmersible pump to be deployed
and retrieved with conventional,
light-duty intervention equipment(e.g., wireline, coiled tubing, or welltractor) without the need for a rig or
requiring the well production tubing
to be pulled.
• Mosaic Materials, focused on
developing a proprietary direct air
capture technology using metalorganic framework materials thatcan be used to separate CO2 fromgas mixtures across a variety of
applications. Mosaic enhances ourcarbon capture, utilization, andstorage portfolio, enabling direct air
capture with higher efficiency andlower total cost of ownership.
• Quest Integrity, a global leader
in the development anddelivery of technology-enabled
asset inspection and reliability
management solutions across thepipeline, refining, petrochemical,
and power generation sectors. This
complements our existing asset
integrity offerings and will support
customers with the delivery ofactionable insights on a broader
range of industrial infrastructure.

Investments and partnerships
The path to sustainable energy
production requires focusedcollaboration with our industrial partners
to mature promising early technologies
to scaled demonstrations andcommercial offerings.
• Greenfire Energy, the newly
combined Baker Hughes-Greenfire
Energy offering, brings the first
integrated Advanced Geothermal
Systems solution to the market.
Together, the companies plan toexpand geothermal resources
development by retrofitting both
existing non-producing geothermaland oil and gas wells to closedloop heat producing wells for
power generation and direct use
applications.
• NET Power, Baker Hughes has joineda strategic partnership with andinvested in NET Power to advancethe technical and commercial
deployment of NET Power’s low-cost,
electric power system that generates
no atmospheric emissions andinherently captures all CO2.

TOC | Letters | By the Numbers | About Baker Hughes | Sustainability | People | Planet | Principles | Appendices

Kristen Curry | Lead Engineer - Water Team, Oilfield Services & Equipment

TOC | Letters | By the Numbers | About Baker Hughes | Sustainability | People | Planet | Principles | Appendices

Baker Hughes

21

Cristina Renzini | ASPIRE Associate
Field Service Leadership Program,
Industrial & Energy Technology

Our values and culture
At the core of who we are is a strong set of values that guide our behavior. Our values provide a
simple, memorable, and action-orientated way of expressing our culture. As a result, we have aculture of performance, inclusion, safety, and integrity. Read more about how we’re bringing thesecultural attributes to life in the following People, Planet, and Principles sections.

Grow
See challenge as opportunityand learn every day.

What does it mean to grow?

Why it matters• Learn continually

The energy transition will present
scenarios we have yet to imagine. By
embracing a growth mindset, we will beready to adapt and win.

• Be adaptable• Manage ambiguity• Be resilient

Collaborate
Inspire, be inclusive, and bringout the best in each other.

What does it mean tocollaborate?
• Instill trust• Communicate openly• Manage conflict• Value difference

Why it matters
Collaboration sits at the heart of ourefforts to transform the core, invest for
growth, and position for new frontiers.
Without collaboration, we will not survive
through the energy transition.

• Partner with communities

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Baker Hughes

TOC | Letters | By the Numbers | About Baker Hughes | Sustainability | People | Planet | Principles | AppendicesOur values are how weshow up every day, what
we believe in, and how
we activate our purpose
and strategy - fueling ourtransformation.

Lead
Make, invent, and performwith impact.

What does it mean to lead?

Why it matters• Cultivate innovation

Customers are looking for strategic
partners as they move forward throughthe energy transition. Our people, ourinnovative solutions, and our consistentdelivery will differentiate us against
competitors.

• Empower others• Be accountable• Deliver results

Care
Do the right thing, always, for ourcustomers, our people, and theenvironment.

What does it mean to care?

Why it matters• Focus on the customer

Every day, people choose to work with
Baker Hughes because they know wecare. Our dedication to our people, ourcustomers, and the environment, alongwith our relentless focus on doing theright thing, make us a company like noother.

• Develop others• Practice sustainability• Own integrity• Be responsible for safety,
quality, and compliance

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Baker Hughes23

Sustainability
at Baker Hughes
26 Our sustainability strategy
28 Materiality assessment
30 Stakeholder engagement24

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Baker Hughes

25

Figure 3-1: Sustainability strategy driven by cross-functional engagement and best practice

Benchmarking

11 companies werecross-industry
selected

topics48 ESG
assessed for eachcompany

Internal stakeholder
engagement

50+ experts were

subject matterengaged across thebusiness segments

20+

workshops and deepdives

Our sustainability strategy
In 2022, the oil and gas macroeconomic environment
continued to be dynamic. We believe the world’s reliance onhydrocarbons will not disappear, and oil and gas will continue
to remain relevant in meeting global energy demand whilemoving the world to a lower carbon economy. Despite anincrease in fossil fuel use in some parts of the world, theenergy transition continued to accelerate, with governments
and society focused on reducing CO2e emissions while trying
to balance energy security, sustainability, and affordability.
At Baker Hughes, sustainability starts with our people.
Our people are central to our purpose of taking energy
forward. Only with a true culture of sustainability will our
people be empowered to make sustainable choices, tackle
the hardest challenges, and take positive action for the planet.
That is why we developed a comprehensive sustainability
strategy which serves as our roadmap to embed people,
planet, and principles into the fabric of how we do business,positioning Baker Hughes as the energy technology companyof choice. Only by linking our culture of sustainability to how wesolve the biggest challenges can we deliver on our promises.

Strategy Development
We applied a rigorous process to identify risk, benchmark
ourselves across multiple industries, and key in on the areasthat really matter — or are important — to our Company andour stakeholders.

26

Baker Hughes

Sustainability
strategy

25 set across our focus

public commitmentsareas

by 30+ key
30+ driven
initiatives

The following processes helped to inform our sustainability
strategy:• Benchmarking: By identifying the most relevant topics, wewere able to develop both short- and long-term strategies
that better position us to buffer risks, catalyze opportunities,
and create value for our shareholders.
• Materiality assessment: Our sustainability strategy is
aimed at addressing issues identified as being mostimportant to our business through our materiality
assessment. The identified issues were viewed as aninterconnected ecosystem that required an integrated
strategy designed to embed sustainability within existing
business processes and the overall business strategy.
This information advised the development of our sustainability
framework outlined in Figure 3-2, which was constructed tocreate social, environmental, and economic value with thefocus on driving investment and performance. The results ofour benchmarking analysis and materiality assessment werealigned with our existing framework driven by three focus
areas: People, Planet, and Principles.
We then articulated six main goals that serve as the backboneof our strategy which will help us to achieve our long-term
vision. These goals have and will continue to provide theframework and subsequent activities to drive sustainable
operations at Baker Hughes.
Our 12 objectives articulate how our purpose-driven focus
areas are linked to the most pressing issues identified byinternal and external stakeholders. These objectives weredeveloped to urge specific actions that will drive sustainable
operations at Baker Hughes and at our customer sites.

TOC | Letters | By the Numbers | About Baker Hughes | Sustainability | People | Planet | Principles | AppendicesOur strategic outcomes were defined to help us measure our own
performance as we work to deliver on our objectives and goals for
People, Planet, and Principles.

By applying input from internal and external stakeholders andengaging subject matter experts from across our business segments,
our vision, goals, and outcomes are aligned to buffer risk andcatalyze opportunity.

Figure 3-2: Our strategy frameworkOUR GOALS

People1. Attract, retain, anddevelop a diverse
workforce of the future

HOW WE WILL DELIVER SUCCESS• Ensure we attract, retain, anddevelop diverse talent• Commit to progress on
diversity, equity, and inclusion

HOW WE WILL MEASURE SUCCESS• Increase women and people of color representation
year-on-year (YOY)• Retention parity across under-represented groups• Best-in-class talent management and acquisition• Achieve top quartile inclusion index rating annually• Track diverse supplier spend

2. Actively engage
our people and ourcommunities• Engage with communities inwhich we live and work
• Embed sustainability as
everyone’s responsibility• Track spend to support global communities• YOY increase in employee volunteer hours• Company-wide engagement plan aimed at driving
habits of sustainability• Reduce scope 3 emissions by 2033

1. Pioneer low carbon
energy solutions todeliver value for ourcustomers• Enable our partners to thrive
in a low-carbon world• Become a Net-Zero businessby 2050• YOY increase R&D funded by external sources• BH positioned early and recognized as key technology
provider• Reduce scope 1 and 2 CO2e emissions by 50% by 2030

Planet• Complete life cycle assessments for the >95% emissions
intensive products by 2026
• Complete proactive strategic policy framework for all
growth areas
2. Champion
environmental
stewardship andminimize our footprint

Principles

1. Drive a culture of
1. Drive a culture oftransparency andtransparency andintegrity - doing the
integrity - doing theright thing beyond
right thing beyond
compliancecompliance• Reduce spills and reportthem transparently• Minimize the resources we use• Reduce spills at our sites• Reduce usage in water-stressed sites by 2030
• Reduce waste to landfill by 2030
• Assess 100% of sites for biodiversity risk by 2030 and
implement risk management programs for high-risk sites• Champion complianceand ethics• Ensure sustainable
governance• 100% of targeted personnel trained annually onhuman rights policies and procedures• Specialized human rights training completed for >80%
SSRP auditors and sourcing by 2025
• Process to record, track, and monitor human rights
grievances in place Q1 2024
• Total Recordable Incident Rate <0.3
• All Perfect HSE Days

2. Take energy forward
2. Take energy forward
responsibly withresponsibly withintegrity andintegrity andtransparencytransparency• Uphold the highest health, safety,
and environment standards• Strive for principled, diverse, andinclusive supply chains• Active suppliers assessed for environmental criteria every
three years• 90% of Supplier Social Responsibility (SSRP) audit red-flagfindings closed within 90 days
• 90% completion rate for SSRP planned audits• 80% of suppliers agreeing to BH Integrity Guide by 2030

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Baker Hughes27

Miranda Gomes, Chemicals Training Manager

Diego Paz, Drilling Completion Fluids Technical Training Manager

Materiality assessment
As the world has continued to change, so too havethe priorities of our stakeholders. Our structured
materiality2 assessment provided a critical foundationfor our sustainability strategy and helped us ensure
the developed strategies are aligned to the issues thathave an impact on and relevance to our business,
communities, and planet.

Our approach to the materiality assessment
Our annual materiality assessment was conducted using bestpractices and aligned to the most widely recognized reporting
frameworks, such as the Global Reporting Initiative (GRI) andSustainability Accounting Standards Board (SASB). Our processes
assessed our peers and customers in the energy technology
sector, reporting landscapes, and global trends. We then collected
qualitative and quantitative data through engagement withcustomers, investors, employees, trade associations, and thinktanks. After the survey data was collected, follow-up interviews
were completed and analyzed. We utilized the best practice toposition topics relative to the degree of stakeholder interest andpotential business impact on the following materiality matrix.

2 The terms "material" and "materiality" are used in the context of each respective ESG standard and do not imply financial or legal materiality.

28

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30

Focus on theareas that matter(All Stakeholders' Input)

Focus on theareas that matter(Internal Input)

28

14

IMPORTANCE TO STAKEHOLDERS

29

16

22

4

15

24
12

18

2

11

26

3
5

20

13

6
19

17

1

31

Lower

23

10

21

25

27

Focus on theareas that matter(External Input)
Figure 3-3:
Materiality
assessment

8

9
7

Lower

Higher

BUSINESS IMPACT

Baker Hughes ESG Materiality (2022)
People1.

Attracting, retaining,& developing talent

2. Collaboration with academia& non-governmentalorganizations

3. Community impact
4. Diversity, equity, & inclusion
5. Employee benefits & well-being
6. Employee engagement
7. Just transition principles

Planet

10. Air & greenhouse gas (GHG)
reduction

11. Biodiversity impact
12. Circular economy & waste
management

13. Climate-related risks
14. Energy transition strategy
15. Publicly stated net-zero pathways
16. R&D investment to accelerate energy
transition

8. Stakeholder engagement

17. Product emissions

9. Supplier diversity

18. Renewable energy sourcing
19. Water management

Principles

20. Corporate governance
21. Cybersecurity & data protection
22. ESG reporting & transparency
23. Ethics & compliance
24. Geopolitical climate
25. Global health emergency response
26. Green investments
27. Health, safety, & environment
management

28. Human rights & modern slavery
29. Labor rights
30. Physical security
31. Sustainable supply chain

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Baker Hughes29

Leading Conversations
Hear CEO Lorenzo Simonelli discuss the role ofhydrocarbons in the future.
In November 2022, Baker Hughes attended the27th United Nations Climate Change Conference(COP27) in Sharm El-Sheikh, Egypt, to foster direct
dialogue with governments and develop a further
ecosystem of partnerships, commercial opportunities,
and sustainability programs. Baker Hughes’ deep
engagement in COP27 highlighted our industry
leadership and commitment to a sustainable future.

Stakeholder engagement
Stakeholder engagement allows us
to collaborate and build coalitions
with organizations that help advanceour strategic goals and objectives.
We established relationships withgroups and entities aligned with our
purpose, strategy and values, corporate
commercial and sustainability
strategies, and policy positions. Active
participation in associations, thinktanks, consortiums, and academic
partnerships across our businesses andgeographies helps us gain valuable
insights and the impactful presence
needed to be an industry leader for alower-carbon future.
We worked with several key
organizations including:• American Fuel and Petrochemical
Manufacturers• American Petroleum Institute• Confindustria

30

Baker Hughes• Digital Climate Alliance• European Geothermal Energy Council• National Association of
Manufacturers• Geothermal Rising• National Petroleum Council• Global Carbon Capture and Storage
Institute• Oil and Gas Climate Initiative• Offshore Energies UK• Hydrogen Council• Resources for the Future• Hydrogen Europe• The Nature Conservancy• IEA Greenhouse Gas Research andDevelopment Program• United Nations Environmental
Program• International Geothermal Association• World Cement Association• International Labor Organization• World Resources Institute• International Association of Oil and
Gas Producers• International Renewable Energy
Agency• Ipieca• Keystone Policy Center• Long Duration Energy Storage
Council

TOC | Letters | By the Numbers | About Baker Hughes | Sustainability | People | Planet | Principles | AppendicesGeothermal engagement
In June 2022, our leadership attended
the European Commission’s second
meeting of the Clean Energy Industrial
Forum (CEIF), speaking on behalf of themembers of the European Geothermal
Energy Council.
The high-level meeting brings together
European clean energy industry
leaders representing the full spectrumof the EU’s clean energy industry to
discuss how to improve European
industrial competitiveness.
The CEIF focused on the recently
announced REPowerEU plan, which
included permitting reforms to speed
up approvals for clean energy projects
across the EU. Our team offered threeconcrete actions that the Commission
could take to build on these reforms
and accelerate geothermal
deployment across Europe.
We engage with trade associations
such as the European Geothermal
Energy Council, Geothermal Rising,Society of Petroleum Engineers,
and the International Geothermal
Association.
Our ongoing energy transition
policy work and global government
advocacy are vital to shaping theenergy and climate policies that willdefine tomorrow’s energy systems.

Alessia Becco | Quality Coordinator Module Construction
Avenza Plant, Industrial & Energy Technology

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Baker Hughes

31

Stakeholder engagement channels
This chart illustrates our systems and processes for engaging with a wide variety of internal and external stakeholder groups.
STAKEHOLDERFORMS OF ENGAGEMENTFREQUENCY

EXAMPLE ENGAGEMENT

Customers

Global, regional, and local industry
events, forums, and conferences.

Our senior leaders andcommercial teams
actively participate inhundreds of customer
events and meetings
across the globe.

We launched the Wells2Watts consortium with
Continental Resources, INPEX, and Chesapeake Energy
Corporation, with support from technology providers,
including Vallourec and GreenFire Energy, to explore
technology for converting and retrofitting oil andgas wells for geothermal energy, revitalize dry nonproductive geothermal wells, and develop greenfield
opportunities for geothermal renewable electricity
production. With industry partners, this collaboration
looks to accelerate technology development andcommercially scale geothermal as a baseload energy
supply.

We inform our investors
and analysts about ouroperations formallyon a quarterly andannual basis, as well as
proactively engage inyear-round integrated
outreach, to monitor
developments incorporate governanceand sustainability.

Please see our Investor Relations website for additional
information on engagements in 2022.

We exchange ideas
and feedback with our
employees across a widearray of communications
channels weekly, monthly,quarterly, and annually.

Employee engagement on sustainability is outlined in
the People section, on page 54-55.

Proprietary Company events andmeetings.
Partnerships and working groups toadvance best practices.

Investors

Via public quarterly earnings calls,
annual shareholder meeting, executive
meetings, and presentations.
Outreach program led by our Investor
Relations group, the Corporate
Secretary’s Office, and Executive
Compensation Team.

Employees

We engage with employees throughtown hall meetings, interactive
online forums, and People Leader
engagement. Thousands of employees
belong to Employee Resource Groups,
many with senior leader sponsors.
Our CEO also meets regularly with the
Employee Pulse Group.

Communities Civic engagement through economic
development groups, chambersof commerce, and related forums.
Collaboration and social investments
where we operate and in support ofbroader society.

32

Baker Hughes

We have ongoing dialogue Community engagements are outlined in the People
section, on page 53-55.
with community partners
on charitable projects andplanning for employee
volunteerism.

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STAKEHOLDERFORMS OF ENGAGEMENTFREQUENCY

EXAMPLE ENGAGEMENT

Governments Formal and informal bilateral meetings

Given the breadth andscope of our industry andthe global footprint in which
we operate, Baker Hughes
senior leaders across ouroperations engage with at
all levels of government ona regular basis.

We became a founding supporter of the HALO Hydrogen
Hub in 2022, a three-state coalition to pursue hydrogendevelopment funding from the U.S. Department ofEnergy. We are working with governments, academia,
community stakeholders, and customers to help create
the infrastructure, technology, and policy needed to
grow hydrogen as a zero-emissions fuel source.

Policygroups andassociations

Membership participation across theglobe. Working groups, committees, andpublic-private partnership activities
in industry groups and associations.
Leadership and committee positions
that extend and strengthenorganizational capabilities.

Our participation inindustry groups includes
monthly, quarterly, andannual meetings, events,and engagement toadvance best practices
and policy positions.

Ipieca is the global oil and gas association foradvancing environmental and social performanceacross the energy transition. In addition to a seat on
the executive committee and multiple workstreams, we
contributed to the COP27 Task Force and participatedin an Ipieca industry panel at COP27 in Egypt to discusstechnology and innovation needs for a net-zero future.
Ipieca was also a guest speaker for our internal Let’s Talk
Sustainability webinar series, where Ipieca shared theirfocus on social and environmental industry priorities inline with our strategy.

Universities,
institutions,and NGOs

Connections, collaborations, andpartnerships on a variety of sharedbusiness, industry, social, andenvironmental interests globally.

We participate inmultiple opportunities
to collaborate withinstitutions andorganizations on public
policy, regulations,
technology roadmaps,
and a variety of research
projects.

The European Geothermal Energy Council (EGEC)
promotes the European geothermal industry andenables its development both in Europe and worldwide
by shaping policy, improving business conditions, anddriving research and development. We increased our
engagement and participation in 2022 by being electedto the Board of Directors and sponsoring EGEC’s 2022
annual conference.

with public officials at all levels ofgovernment. Lobbying and otherdirect engagement in compliance withapplicable laws and regulations.

Public policy and working with governments
Public policy can have a significant effect on our businessand therefore, we believe it is in our best interest andthat of our stakeholders that our perspective informs
the development of relevant public policies. Seniorleaders across our operations engage with public
officials at all levels of government. Our participationin the policymaking process is subject to an extensive
framework of applicable laws and Company policies that
demonstrate our commitment to integrity when engaging
with government officials.

As stated in our public Lobbying Activity Policy, we may,from time to time, contribute to candidate or issuecommittees and other political organizations as generally
authorized by our Board of Directors and consistent withapplicable laws. We do not currently utilize a Political Action
Committee. On an annual basis, the Governance andCorporate Responsibility Committee reviews all corporate
political contributions, as well as all nondeductible
portions of payments in excess of $50,000 made to tradeassociations. We publicly report information regarding our
advocacy activities and political contributions. For the 2022
reporting year, we did not make any political contributions.

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Baker Hughes33

People35 Performance snapshot
36 Our people
40 Our People strategy
42 Attract, retain, and develop diverse talent
49 Commit to progress on diversity, equity, and inclusion
53 Engage with communities in which we live and work
56 Embed sustainability as everyone’s responsibility

Sherry Ann Neverson | Performance Optimization Manager, Oilfield Services & Equipment

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Baker Hughes

TOC | Letters | By the Numbers | About Baker Hughes | Sustainability | People | Planet | Principles | AppendicesThis dashboard represents our progress on key performance indicators over time. We continue to improve our reporting by
establishing quantitative goals and performance metrics that contribute to the UN Sustainable Development Goals (SDG).

Peopleperformance snapshot
SUSTAINABILITY PRIORITY

Attract, retain, anddevelop diverse talent

KEY PERFORMANCE INDICATORS 3

2020

2021

2022

# of employees completing professional development planning with their manager4

30,90632,23945,454% of voluntary employee attrition

5.8

8.1

8.6

# of employees participating in leadership development programs5

438

393

527

Average hours of training per employee*

-

17

37

# of employees that were entitled to parental leave**--

50,283# of U.S. employees that took parental leave**

-

-

300

# of U.S. employees that returned from leave in the reporting period following leave**

-

-

237

% of employees who identify as women in workforce

18.2

18.8

19.1

% of employees who identify as women in Senior Professional Band andabove (SPB+)

17.0

18.1

18.6

33.0

33.0

33.0

35.6

35.8

36.1

-

31.6

32.1

% of people of color (PoC) in the U.S. who identify as women*

-

25.0

24.6

% of women in STEM roles*

-

11.2

12.1

Total charitable contributions (million USD)

$119

$45

$75

Volunteer service hours

7,161

16,90527,181% of Board of Directors who identify as womenCommit to progress on
diversity, equity, and% of U.S. employees who identify as people of color (PoC)
inclusion% of U.S. employees who identify as people of color (PoC) in Senior Professional Bandand above (SPB+)*

Engage with
communities*New 2021 metric, **New 2022 metric
3 The key performance indicators should be read in connection with Appendix B - Statement and Notes on Selected People Metrics and the glossary of terms.
4 The 2022 number includes Annual Priority Setting discussion, which was not counted in previous years.
5 Programs include ASPIRE, IMPACT, CULTIVATE, and ASCEND. More information found on page 47.

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Baker Hughes35

At Baker Hughes, we’re shaping the future ofenergy—and that future belongs to all of us.

Our people
As of December 31, 2022, we have approximately
55,000 effective employees in 89 different
countries. Operating across so many markets
provides a diverse set of global perspectives
making our Company stronger, more resilient, andmore responsive to our global customers.
Among this employee base, our teams represent
a vast diversity of skills, backgrounds, and cultures.
This enables us to further our goals and values.
We value difference in gender, race, ethnicity, age,gender identity, sexual orientation, ability, cultural
background, religion, veteran status, experience,
thought, and more across the globe.
We celebrate the diversity and uniqueness of each
employee and believe that everyone has the rightto be treated with fairness, dignity, and respect.
Unique ideas and perspectives fuel innovation andour differences make us stronger.

55K+
employees

89

countries

Interview With Nicole Durham

Together, we are taking energy forward.

6 Undeclared is an option in Workday and represents someone that selected Undeclared as their gender.
7 No gender selected represents someone that did not select any option under Gender category in Workday.
8 Remaining employees in RCIS region are assisting in the Russia wind down or supporting regional customers outside of Russia

36

Baker Hughes

TOC | Letters | By the Numbers | About Baker Hughes | Sustainability | People | Planet | Principles | AppendicesFigure 4-1: Total employees by region

17,07314,080

6818

9,486
7,081
1,006
5,828

Figure 4-2: Employees by gender, age, seniority, and job function

Age

GenderWomen
10,554Men
43,535

Undeclared6
1,140Over 50
11,27430-50
38,352

Under 30
5,606

No gender
selected7
6

No age selected
3

Function

Seniority

SeniorProfessional
Band and above
employees(SPB+)
8,944

Executive
Band andabove
employees
(EB+)
639

Technical
10,389Production
32,112

Other
1,183
Commercial
4,968
Enabling
6,583

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Baker Hughes37

Overall, we did not see a major
fluctuation in our workforce in thelast year. We have full-time roles,
representing 98.7% of our total
employees. We offer part-time working
arrangements in certain circumstancesand regions to meet the needs of ouremployees and local regulations. Refer
to Appendix B - Statement and Notes
on Selected People Metrics to findthe number of employees by gender,
job function, seniority, age, and otherbreakdowns. By sharing this detailed
information, you will be able to moreclearly interpret the data tables found in
the following section.
In addition to our employees, we
supplement the skills and people, as
needed, to react flexibly to business andeconomic requirements. We partnerwith supplier companies that employ
approximately 24,250 contingent
workers that fulfill various roles acrossall business segments and regions weoperate.

Understanding job functions at Baker Hughes

Technical
Encompasses roles that manage technology capabilities
including technology engineering, project management,
and software development, among others.

Commercial
Encompasses roles related to selling or advertising
our organization including sales, marketing, productdevelopment, and mergers and acquisitions.

Enabling
Encompasses roles that enable the success of theorganization including finance, human resources, legal,
sourcing, and other support functions.

Production
Encompasses roles that drive production of our products
and services including field operations, logistics,
manufacturing, and client support services.

Other
Represents roles that haven’t yet been aligned to the otherjob functions at the time of reporting such as legacy roles
from a merger or acquisition.

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TOC | Letters | By the Numbers | About Baker Hughes | Sustainability | People | Planet | Principles | Appendices98.7%

Alessia Becco and Silvia De Martino
Quality Coordinators
Industrial & Energy Technologyof our total employees
have full-time roles

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39

Our People strategy

PeopleOUR GOALSHOW WE WILL DELIVER SUCCESS

1. Attract, retain, anddevelop a diverse
workforce of the future• Ensure we attract, retain, anddevelop diverse talent

2. Actively engage
our people and ourcommunities• Commit to progress on
diversity,equity, and inclusion• Engage with communities inwhich we live and work
• Embed sustainability as
everyone’s responsibility

What’s New for 2022
In the following sections, you will read about
important new actions we’ve taken in the areaof People and social responsibility, including thefollowing key milestones:• Aligned across the organization on Peoplefocused strategic goals.
• Published our inaugural 2021 Diversity, Equity, andInclusion Annual Report.
• Implemented a digital capability program as aframework for attracting and developing skill sets.
• Launched new ASCEND leadership development
program for military officers transitioning tocivilian life.

HOW WE WILL MEASURE SUCCESS• Increase women and people of color representation
year-on-year (YOY)• Retention parity across under-represented groups• Best-in-class talent management and acquisition• Achieve top quartile inclusion index rating annually• Track diverse supplier spend• Track spend to support global communities• YOY increase in employee volunteer hours• Company-wide engagement plan aimed at driving
habits of sustainability

People are core to who we are as a Company. Oursustainability strategy begins and ends with thesuccess of our employees and the communities inwhich we work.
The past year continued to challenge employers
around the world, and Baker Hughes was no
exception. Lasting impacts of the pandemic persisted
and contributed to the Great Resignation. This
combined with rising living costs and inflation haveplaced new economic pressures on employees andcommunities.
To fully realize our commercial and sustainability
outcomes, we have two goals and four objectives that
relate to People. In this section, we discuss our efforts
to further those objectives in support of our Company,
our people, and our communities.

• Created new JOURNEY community for developing
People Leader capabilities.

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Baker Hughes

TOC | Letters | By the Numbers | About Baker Hughes | Sustainability | People | Planet | Principles | AppendicesPeople-specificawardsOffshore Energies United

Kingdom Award for equality,
diversity, and inclusion.

Houston Business Journal“Outstanding Supplier
Diversity.”

GOLD for “Best use of social/collaborative learning” and “Bestunique or innovative learning anddevelopment program” by The

Brandon Hall Group. Read moreon page 48.

‘Smart working award 2022’ inItaly for large enterprises forbeing able to implement the mostinnovative and digital working

methods as part of our Future ofWork project.

The Alliance 2022 Corporate

Ambassador Award for supporting
Afghan refugees.

Left to Right: Ronnie Russell | Engineering Manager, Mechanical Engineering, CTI

Xiaobin (Betty) Huang | Team Leader, Chemical Engineering and Science, CTI

Le (Lola) Dang | Sr Engineering Manager, Customer Application Engineering, CTI

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Baker Hughes41

Attract, retain, anddevelop diverse
talentFigure 4-3: Voluntary attrition
By Gender

3,739

974
1
Men

Women

GenderUndeclared

30 - 50

Over 50

By AgeUnder 30

774

858

3,082

42

Baker Hughes

There’s nothing more exciting thanworking in an industry at a criticalpoint of change. We continue to takeenergy forward, making it safer, cleaner,and more efficient for people and theplanet. We can only achieve that by
attracting the right people, retaining
the right skill sets, and developing adiverse talent base. These activities
are interconnected, together driving
towards our aim of best-in-class talentmanagement and talent acquisition.
A very active labor market in 2022
added complexity in talent retention
and competitiveness. We utilized thisopportunity to focus on redefining our
employee value proposition to underpin
the needs of a changing workforce
while the Company undergoes
transformation. This has led to attrition,
as well as the hiring of key new talent.
Despite the intense competition for
talent, our overall voluntary attrition
rate increased marginally from 8.1% in
2021 to 8.6% in 2022. We are proud of
the concerted efforts outlined in thefollowing pages which minimized these
impacts compared to many other
employment sectors.

In March 2022, we announced thesuspension of new investments in Russia
to comply with applicable laws andsanctions. We exited the country upon
the sale of the Oilfield Services business(OFS Russia) in November 2022. As aresult of the sale, we experienced a highattrition rate in the region.
Recent workforce challenges, including
The Great Resignation, have addedpressure to organizations on how
best to attract, retain, and develop
their workforce. In line with recent
workplace trends, we felt those impacts
as well, with women having a slightly
higher voluntary attrition rate at 9.3%,
compared to men at 8.5%. People
under the age of 30 had an attrition
rate of 15.1%, notably higher than thosein other age groups. This trend is
especially detrimental given womenmake up 19.1% of our workforce. While
there are many reasons causing these
spikes, we have defined a multifaceted
approach to achieving retention
parity among under-represented
groups, including succession planning,capability development, and a refreshedemployee value proposition.

TOC | Letters | By the Numbers | About Baker Hughes | Sustainability | People | Planet | Principles | AppendicesFigure 4-5: Reimagine Recruitment highlights

Figure 4-4: New hires
By Gender
Internal candidates hired
External candidates hired
7,182

2,377

3,734

1,247

Men

Women

1,174

1

1

Gender No genderundeclared selected

By Age

6,353
3,515

3,702

807
Under 30474
30 -50

865

69

38

50+

focus groups andinterviews wereconducted for TalentAcquisition & Onboarding
gap assessment

process
recommendations andtechnology enablers
are identified

of manual activities
will be automated as
the result of Reimagine
Recruitment program

96

4

100%

pain points wereidentified as process
inefficiencies andtechnology enablement
opportunities

sprints make up a
Reimagine Recruitment
program that is aiming
towards time to hire
reductionof candidates will
experience a new digital
hiring user experience
with Baker Hughes

Visit the Baker Hughes Careers website to learn more about
working for Baker Hughes.

Over 50

Attracting key skills
through our employee
value proposition
We explored external perceptions
through social listening tools andanalyzed data from internal focus
groups to design a new employee
value proposition (EVP) that represents
today’s Baker Hughes. We also
reimagined our recruitment processby implementing key technology
efficiencies such as applying throughLinkedIn and interview self-scheduling.
These enhancements enable a better
candidate experience while reflecting
our values.

Figure 4-6: Our employee value proposition

Your passion andpurposeYour vision, ourinnovation

Your potential,
our growthYour individuality, ourinclusivity

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Baker Hughes43

We approved a minimum parental leaveof 18 weeks for the primary parent.
Retaining our people byinvesting in our people
Our employees represent valuable
skills, knowledge, and experiences thatare uniquely Baker Hughes. To retain
those perspectives, we must listen to
our employees. Using an employee
listening survey platform we regularly
hear directly from our employees
and use feedback collected to drive
localized and tailored engagement andcareer development activities. Throughinformed, customized, and deeply
tailored activities we can create a place
where our employees will continue togrow, develop, and feel valued for allthat they bring.
Table 4-1: Percentage of employees
receiving annual performance andcareer development review92022(%)All employees

75.0

Men

72.8

Women

84.0

Gender undeclared

31.0

Professional band and above(PB+) employees

95.810Senior Professional band andabove (SPB+) employees

95.8

Executive Band employees

94.1

PB+ by gender**
Men

96.0

Women

95.3

PB+ by job function**
Commercial

93.4

Enabling

95.3

Production

95.5

Technical

97.8

Having regular performance and careerdevelopment conversations enables
employees to identify ways to build
key skills and talk about their career
aspirations. While not all employees
are required to have a year-end
review (for example, employees
hired after October 1), we had 75.0%
of all employees complete a careerdevelopment touchpoint with their
manager. Of those required in theProfessional Band and above, 95.8%
completed a year-end performanceand career development touchpointwith their manager. These conversations
act as a catalyst for identifying career
progression opportunities, and in 2022,
4,983 open roles were filled with internal
candidates. Through our strategy we will
maintain our focus on providing bestin-class talent management initiatives
enabling us to retain our employees by
supporting their career development.
Figure 4-7: Employees receiving annual
performance and career development
reviewsAll
employees

75%

PB+
employees

96%

The challenging economic market
has proven that competitive, faircompensation and benefit programs
are crucial to the success of any
organization. We offer our employees

core benefit programs ensuring medical
and life insurance protections globally.
We also offer, where feasible, additional
flexible benefits promoting physical,
emotional, and financial well-being.
Read more about our well-being
strategy in the Principles section on
pages 96-97.
We work to ensure the competitivenessand alignment of these programs
through regular and robust
benchmarking with market peers. This
year, we also completed a living wage
analysis in the U.S. Outside of the U.S.,
we regularly conduct a detailed wage
analysis as we develop salary structures.
These types of analysis will continue
to be the bedrock of our approach todata-driven decision making.
It’s not enough to just collect data.
That information must be turned into
action. We decided to offer a minimum
parental leave of 18 weeks for a
primary parent and two weeks for asecondary parent in all countries where
we have employees.11 This expanded
global coverage and leave benefits
alongside the approved global policychanges improve protections andease of utilization for our employees
at a pivotal moment in their lives. An
important aspect of the intent behindthese framework changes includes
that gender identification does notdetermine the primary or secondary
parental status for leave eligibility. These
forward-looking policy changes further
support our commitment to the security
and well-being of our employees
and our desire to foster a diverse andinclusive workplace.

**New 2022 metric
9 Employees who are not Professional Band and above have a different career development review process and are not included in the numerator of this metric.
10 Leadership Training Band is not included in PB+ for 2022 because they follow their own performance management process.
11 The implementation of parental leave policies has and will occur in a phased approach by country in 2023.

44

Baker Hughes

TOC | Letters | By the Numbers | About Baker Hughes | Sustainability | People | Planet | Principles | AppendicesHighlights of global benefit offerings:
Healthcare plans and life insurance are a core benefit
and are provided in most locations globally.
Our employee assistance program (EAP) provides
impartial professional advice in complex life situations
globally.
Fitness reimbursement program to support healthand wellness at most of our locations.
Various leave-of-absence options help employees
achieve higher quality-of-life needs, including familycare and vacation.
Personal Illness and Personal Business Leave for nonexempt and Permissive Leave for exempt employees
in U.S.
For new mothers in the U.S., we provide on-site
mother’s rooms at many sites.
We encourage employees to explore ways to betterbalance work and personal life through arrangements
such as flexible schedules, compressed work weeks,hybrid work, remote work, and other options.12
Employee stock programs and retirement saving plans
are available in most locations globally.
Financial assistance to employees pursuingformal education through the Tuition Reimbursement
Program.13
Financial support for U.S. employees who adopt a child.
For additional information on U.S.-specific benefits
portfolio including retiree benefits offered, visit
www.bakerhughesbenefits.com/guide.
12 This policy is applicable to all employees, but individual circumstances
vary based on local laws and regulations, positions, and job requirements.
13 Offered to eligible employees in Canada, Guyana, Trinidad and Tobago
and the United States as outlined in program policy.

Federico Sicilia | Packaging Supervisor, Industrial & Energy Technology

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Baker Hughes

45

What is the CORE community?
CORE is a social community and continual, self-directed learning experience
for any employee keen to develop critical leadership behaviors. It is aligned to
our values - grow, collaborate, lead, and care - and the behaviors that support
these values. CORE was launched in 2021 and has since grown into a diverse
and inclusive community with 5,000+ members in 69 countries across businesssegments and functions. Employees invested ~17,500 hours towards learning
through CORE in 2022.
Right to left: Victor Sampaio Central Reliability Engineer, Gbenga Osunjaye Sr ProductManagement Manager, Nataliya Calahan Central Reliability Engineer, Idil Atalik Sr Manager,
Technical Product Owner (all Oilfield Services & Equipment)

Career transitions
Jobs must sometimes change or be
reduced to meet the needs of ourcustomers and our dynamic businessenvironment.
In the unavoidable event of involuntary
workforce reductions, we comply withlocal laws and requirements regarding
notice periods, engagement with works
councils, and other processes. We
provide severance payments that meetor exceed local requirements and offer
outplacement assistance and services
in many locations. We employ forwardlooking strategic workforce planning
to anticipate workforce changes
and attempt to redeploy or retrain
employees where possible.

Building core capabilities
Critical to the execution of our transformation, we have identified
four differentiating capabilities. In 2022, we built and implemented aframework that included key activities to attract, retain, and develop
the Digital capabilities needed for success. We will continue to replicatethat framework and process for the remaining three capabilities.
What are the differentiating capabilities?

DigitalCommercial

Building digital products

Customer-centric solution
selling

Digital capabilities enable us tobuild, sell, and support digitalproducts.

Commercial capabilities focus
on meeting customer needs
with solutions-focused offerings.

Supporting future careers
through learning anddevelopment

Sustainability

Technology
Creating the future of energy

Shaping the future of energy means
having the freedom, support, and tools
for employees to define their career
path. We offer our people opportunities
to learn, grow, and develop their skills ina fast-moving and global environment.

Industry-leading solutions forcleaner energy
Sustainability capabilities allow
us to shape, define, and leadin sustainable practices andproducts.

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Baker Hughes

Technology capabilities bring tolife solutions for more sustainable
and reliable energy.

TOC | Letters | By the Numbers | About Baker Hughes | Sustainability | People | Planet | Principles | AppendicesCore leadership programs
Our formal leadership development programs play a pivotal role in providing
these experiences and building a diverse pipeline of talent within ourorganization. Turning this commitment into action in 2022:• The number of participants in ASPIRE identifying as women increased by
25.0% and IMPACT by 77.8%. CULTIVATE remained a program designed

Table 4-2: Leadership program
participation
ASPIRE

2020

2021

2022

321

243

300

specifically to develop the employee population that identify as women.

IMPACT

16

21

32• We launched our newest leadership program in partnership with our military
veterans - ASCEND. This is a transitional leadership program for military leaders
retiring from the military and joining the civilian workforce.

CULTIVATE

101

129

191

Total

• Overall leadership program participation increased by 34.1%.

**New 2022 metric

Learning at Baker Hughes

Figure 4-8: Our leadership programs

Our employees have access to more than 70,000 on-demand training
courses that can be accessed anytime, anywhere. Prioritizing professional
development, furthering job-related skills, and enhancing technicalknowledge enables employees to be the architects of their own careers. We
also regularly offer learning events featuring internal and external experts,
addressing important topics such as DEI, personal wellness, industry trends,
leadership behaviors, and more.

ASPIRE

Building onto the pilot conducted in 2021, we continued our efforts to expand
the CORE communities in 2022. We did this through successfully launchinga new arm of the community called CORE Strengths which is focused on
critical skills to help move the Company forward. CORE Strengths focuses onsuch areas as coaching skills, project management, leading change, as wellas people and data analytics.

ASCEND**

-

-

4

438

393

527

A two-year rotational program forrecent graduates and early-career
employees to grow functional andleadership skills through challenging
assignmnets, learning plans, andglobal cross-functional projects.

IMPACTA three-year leadership accelerator for
top performing mid-career employees
who have already built functional
expertise and are ready to be
developed into our executive pipeline.

CULTIVATE
A one-year non-rotational programthat fosters the development of highpotential women leaders throughimmersive learning experiences andone-on-one mentoring.

ASCEND
A two-year program for transitioning
junior military officers who are seeking
to launch successful, accelerated,
post-military careers as leaders andinnovators within Baker Hughes.

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Baker Hughes

47

Ilaria Cabona | Lead Project Engineer, Gas Solutions
Project Engineering, Industrial & Energy Technology

Global Learning team wins two Brandon Hall ExcellenceAwardsTable 4-3: Average hours of training
2022 14All employees

37

Men

39

Women

30

Gender undeclared

6

By seniority
Professional Band and above employees

2415

Senior Professional Band and above
employees

17

Executive Band employees**

12

By business segment
IET employees**

18

OFSE employees**

51

Headquarter employees**18

By job function
Commercial**

16

Enabling**

20

Production**

51

Technical**

18

Other employees**

5**New 2022 metric
14 In 2021, we calculated the average training hours by
aggregating the number of completions then multiplying it by
5 hours to estimate the hours spent on learning. In 2022, weare more specifically representing hours by using estimatedduration field in the learning management system for each
respective course. Where the duration field is blank/empty weused the median duration hours of the Activity Type.
15 Leadership Training Band is not included in PB+ for 2022.

48

Baker Hughes

The 2022 Brandon Hall Group Human Capital Management
Excellence Awards are given for work in learningand development, talent management, leadershipdevelopment, talent acquisition, human resources, sales
performance, diversity, equity, inclusion, and the futureof work.
Our Learning and Development team has won two gold
Brandon Hall awards for its Living Baker Hughes’ Values
through the CORE community:• GOLD for “Best use of social/collaborative learning”• GOLD for “Best unique or innovative learning anddevelopment program”
In addition to expanding CORE, we launched the JOURNEY
community, our new community for People Leaders.
JOURNEY is a social community and self-directed
learning experience dedicated to helping People Leaders
understand themselves, build relationships, develop strong
teams, and help shape vision and strategy to prepare ourorganization for the future.

We will remain focusedon attracting, retaining,and developing our talent,
underpinning all that we do.

TOC | Letters | By the Numbers | About Baker Hughes | Sustainability | People | Planet | Principles | AppendicesHow we define diversity, equity, inclusion, and culture:

Diversity

EquityInclusion

CultureThe unique
attributes we bringas individuals

Ensuring fair treatment
and access toopportunity to maximize
an individual’s potential

How we value
difference, respect,and interact witheach otherThe set of shared attitudes,
values, goals, and practices
that characterizes aninstitution or organization

Commit to progress on diversity,
equity, and inclusion (DEI)
Our people represent a workforce rich in all facets of diversity.
We believe that our differences make us stronger and thatunique perspectives fuel innovation. When people thrive, we all
move forward. While diversity, equity, and inclusion (DEI) havebeen at the forefront of many organizations over recent years,
our commitment to furthering our progress at an accelerated
rate is steadfast and focused on action.
In June 2022, we published our 2021 inaugural Diversity, Equity,and Inclusion Annual Report that laid out our foundational DEI
goals and progress towards those goals.

Read the 2021 and 2022 Diversity, Equity, andWhat is the Baker Hughes
Inclusive Leadership Model?
We all want to work where we feel safe voicing our
opinions, comfortable being our true selves, andrespected for the value we bring. Our inclusive
leadership model identifies six key behaviors thatare critical to fostering and sustaining a culture ofinclusion. The model was established in 2022 andwill be rolled out to our organization globally. Whendone right, the outcome is an engaged, highly
motivated workforce with higher productivity,
stronger collaboration across teams, andincreased creativity.

Inclusion Annual Reports here.
2021 Diversity,
Equity, andInclusion Annual
Report (published
June 2022)

2022 Diversity,
Equity, andInclusion Annual
Report (publishedMay 2023)

Progress against our DEI strategic goals will take time and we
recognize that effort is needed to engrain DEI as part of ourcultural transformation. We implemented strategic initiatives
that will set us up for steady progress. A sampling of theseinclude:1.

Use the QR code below
to read about what
diversity means to Tano
Ererughurie, a memberof the Gas Services team
based in Lagos, Nigeria.

Launched the pronunciation and pronouns feature in
Workday, our internal human capital management system,
driving enhanced inclusivity.

2. Recognized as “DEI best places to work for disability
inclusion” by Disability:IN with score of 80% by participatingin Disability Inclusion Index.
3. Developed our Inclusive Leadership Model.

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Baker Hughes49

We have strengthened our ability to monitor progress on our DEI goals through close
partnerships and regular meetings with the executive leadership team, our establishedglobal DEI council, and the Human Capital and Compensation Committee of the Boardof Directors.

19%of all employees
are women

We are seeing steady progress in diversity representation. Women represent 19.1% of all
employees and 36.1% of employees in the U.S. are people of color. While we feel strongly
that all progress is meaningful, we are committed to furthering that progress at a fasterrate. We have set specific, targeted goals including increasing women and people ofcolor representation, retention parity across under-represented groups, increasing
spending on diverse suppliers, and diverse and inclusive supply chains.

Figure 4-9: Women at
Baker Hughes (%)
Board of Directors

33%

All employeesof the Board of Directors
are women

Table 4-4: Diversity snapshot
2020 2021

33.0%

19.1%

Women in management roles**18.8%

Senior Professional Bandand above (SPB+)

18.6%

Women in STEM roles*

12.1%

36%

Baker Hughes

Board of Directors

33.0 33.0 33.0

All employees

18.2

18.8

19.1

Women in management roles** -

-

18.8

Senior Professional Bandand above (SPB+)

17.0

18.1

18.6

Women in STEM roles*

-

11.2

12.1

2020 2021

2022

People of color in U.S. (%)
All employees

35.6 35.8 36.1

Women*-

25.0 24.6

Men**

-

-

-

-

Senior Professional Bandand above*

-

31.6

32.1

Executive Band and above**

-

-

28.6

Gender undeclared**

75.4
0.016

*New 2021 metric; ** New 2022 metricof all employees arepeople of color

50

Women at Baker Hughes (%)

2022

16 Percentages are rounded to one decimal place. If a percentage shows as 0 that means it is less than .05 percent.

TOC | Letters | By the Numbers | About Baker Hughes | Sustainability | People | Planet | Principles | AppendicesBaker Hughes wins The Offshore Energies
United Kingdom Award for Equality,
Diversity, and Inclusion
The award celebrates various initiatives and efforts in promoting an
inclusive culture. Kim Sabate developed a LGBT STEM program andchampioned the creation of a gender transition toolkit, designed toassist managers in supporting and understanding employees who
are transitioning gender. These initiatives contributed to Baker Hughes
receiving this award for equality, diversity, and inclusion in Scotland.
Kim Sabate collected the Offshore Energies United Kingdom Award for Equality,
Diversity, and Inclusion (EDI) at the industry body’s annual awards ceremony in
Aberdeen, Scotland.

Spotlight on our employee resource groups
Figure 4-10: Employee resource groups

Employee resource groups (ERGs) are made up of employees who have joined together based on shared interests,
characteristics, or life experiences to pursue knowledge, innovation, and shared passions. Working across diverse cultures andmultidisciplinary teams, our people have the opportunity to learn, adapt, and grow on every project. Each new opportunity
comes with a combination of global influence, local impact, and personal fulfillment.
All employees are welcome to join ERGs either as members of the represented communities or as allies. Total ERG membershipincreased by 13.1% from prior year with 8,099 employees participating in employee resource groups. This represents 14.4% of ourworkforce participating in an ERG.
ERGs have a powerful influence on driving change by elevating the conversations and awareness around key priorities. In
October 2022, we hosted our inaugural ERG summit bringing together employees from over 30 countries. This three-day
investment in our ERGs allowed participants to hear from champions across the organization, learn from external speakers
about best practices, and participate in discussions with our leaders. By enhancing the governance, support, and alignment
across our ERGs, we can foster closer connections between employees and communities around the world.
We also have Community of Interest (COI) groups which are formed by employees to share information and best practices on
a topic. Through more informal engagement, employees can benefit from collaborating with like-minded colleagues. One ofthese COI groups is the Renew Community. Renew is focused on sharing ways to work and live more sustainably. Read more
about Renew and how its furthering our strategy on pages 56-57.

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Baker Hughes51

Celebrating diversity, equity, and inclusion
while raising funds for those in needOver 400 people joined the second Baker Hughes diversity, equity,and inclusion run in Talamona, Italy. Participants included our
employees, residents, and charity association members. Funds
collected and donated as part of the initiative contributed as
emergency support following the devastating flood that hit the
Marche region in Italy.
This run was organized in collaboration with the main local
associations that promote diversity and inclusion, diversity inphysical and cognitive abilities, gender, and sexual orientation,
as well as inclusion of minorities overall. The Talamona site
is recognized for its technology excellence and for its strong
commitment to promoting thevalues of diversity, equity, andinclusion within Baker Hughes and with local communities.

DEI outreach in the community
Our care and respect for one another also extends to the communities weserve and partnerships we create. We are proud of our social impact in thelocal communities where we live and work, such as:• The reporting year was the second year in which ERGs were involvedin the decision making for our Foundation grant-giving process. EachERG nominated a charity of their choice to be given a grant. As aresult, $270,000 of Baker Hughes Foundation giving was committed
to diverse communities. Learn more about additional philanthropic
contributions to communities on page 53.
• The Baker Hughes Foundation pledged $1 million in grants to four
Historically Black Colleges and Universities for the 2022-23 academic
year, part of the Foundation’s long-running mission to promote
education and opportunity in the communities where our employees
live and work. The funds will help provide financial support for a wide
variety of STEM programs, professional certifications, scholarships, andcareer readiness and curriculum development programs.
Read more about how we engage with and give back to our communities in
the next section.
Karla Pedroza | Aspire Field Service Leadership Program,
Industrial & Energy Technology

52

Baker Hughes

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Engage with
communities inwhich we live
and work
We strive to be proactive global
citizens, seeking to make a positive
impact on society, the economy,
and the environment. We focusedmore deeply on an aligned giving
strategy and re-engaging throughvolunteerism activities in 2022.
Our community outreach strategy
and execution are overseen bya dedicated communications
team and governed by the Boardof Trustees of the Baker HughesFoundation. This board is comprisedof four senior executives within the
Company. We report our community
affairs performance and plans to
the Governance and Corporate
Responsibility Committee annually.

About the Baker HughesFoundation
For 25 years, the Baker HughesFoundation has been a steward ofcharitable resources for meaningfulcommunity impact. The Foundation
seeks to advance environmental
quality, education, health, safety,
and wellness around the world by
supporting organizations with sharedvalues, demonstrated leadership,
evidence of impact, financial
soundness, and the capacity to
implement initiatives and evaluate
their success. The Baker HughesFoundation makes strategic
philanthropic contributions, matches
employee contributions, and awards
volunteer recognition grants foroutstanding employee community
service.

Philanthropic contributions
We pledged approximately $2 million in strategic grants throughthe Baker Hughes Foundation in support of the UN Sustainable
Development Goals in 2022. Above and beyond strategic grants, theBaker Hughes Foundation matches employee contributions to qualified
non-profits, up to $5,000 per person per year. In 2022, many of ourpeople participated in organized fundraisers, personal giving, andmatching gifts.

$925K supporting DEI, Education, and Opportunity• Historically Black Colleges and Universities (HBCUs)• ERG-nominated charities (Gigi’s Playhouse, Junior Achievement,
Folds of Honor)• Singapore Management University• Houston Minority Supplier Development Council• Emancipation Park Conservancy• Tech for Troops• Children’s Environmental Literacy Foundation$417K supporting Health, Safety and Wellness, and Disaster Relief• Feed the Hunger• Red Cross societies• MD Anderson Center$650K supporting Environment• One Tree Planted• Coastal Prairie Conservancy• American Forest Foundation

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53

Community service andvolunteerism

Figure 4-11: Increasing our volunteer engagement
Volunteer hours

Unique volunteer participants

Our people combine a powerfulsense of purpose with the passion
and pioneering spirit to make ameaningful impact. When our
employees volunteer their timeand energy in their communities,
they are putting ‘Care’ - one of ourcore values - into action. As weemerge from the pandemic andthe return of in-person volunteering,
we saw more engagement in
2022, with a 48.2% increase in
the number of unique volunteer
participants and 60.8% increase intotal volunteer hours - our largest
year-over-year increase in recent
years. Empowering our people
to look to the future and make adifference excites and inspires
us every day. We will continue todrive a culture of volunteerism andaligned charitable giving strategy
with our communities in the mostmeaningful way.

797

27,181

1,181

16,905
7,161

250
2020

2021

2020

2022

2021

2022

In November 2022, the Baker HughesFoundation announced $425,000
to Dynamo Camp, a children’s

recreational therapy camp in Italy
The Baker Hughes Foundation’scontribution will support energy
efficiency upgrades on an iconic but
underused historical building datingback to the early 1900s. The upgrades
will also allow Dynamo Camp to expand
capacity though a new space dedicatedto activities for campers and 18 new beds
for staff and volunteers.

Photo courtesy of Dynamo CampThis donation also supports ourcommitment to advancing SDG 3.

Table 4-5: Community contributions17
2020

2021

2022

Matched employee financial contributions made by foundation$800,000$669,215$756,121

Company and foundation financial pledges and contributions18$2,966,951$2,578,208$1,992,500

Company in-kind contributions$115,070,021$41,967,750$72,524,166

Total charitable pledges and contributions$118,836,972$45,215,173$75,272,787

19

17 Contributions are reported when the contract is signed and payments may be made in 2022 or 2023.
18 2022 financial contributions based on Baker Hughes Foundation financial contributions only.
19 Company In-kind contributions represent OFSE business segment software license donations only.

54

Baker Hughes

TOC | Letters | By the Numbers | About Baker Hughes | Sustainability | People | Planet | Principles | AppendicesOur employees plant
trees, supporting
global reforestation

Chairman and CEO Lorenzo Simonelli, Chief HR Officer Deanna Jones, Chief Diversity,
Equity, and Inclusion Officer Nicole Durham, and Baker Hughes employees present
donation check to Emancipation Park Conservancy.

The Baker Hughes Foundation announced a$100,000 grant to Houston’s Emancipation Park
Conservancy (EPC)
Purchased by a group of African American community leaders for oneof the nation’s original Juneteenth celebrations, Emancipation Park was
donated to the city of Houston in 1916 and remained the only publicpark open to Black residents for more than 20 years. The funds given will
support the conservancy’s mission to preserve the park’s integrity andenrich its heritage as a local, state, national, and international landmark.
This announcement marked the third consecutive year the Baker HughesFoundation has supported EPC through charitable giving.
EPC aligns with Baker Hughes Foundation’s mission to promote education,
environment, and health and safety in the communities where theCompany operates.

In partnership with One
Tree Planted, a non-profit
organization, the Baker
Hughes Foundation issued a$350,000 grant. Additionally,
our employee volunteers
participated in three planting
events across the globe in 2022
– Houston, Dubai and England.
These types of events help
contribute to outcomes suchas erosion control, biodiversity,forest fire restoration, carbon
sequestration, and economic
diversification.

The work we dois not just abouttrees. It’s about
the planet’s
life support
systems forclean air, water,
biodiversity,
climate, health,and social
impact — what
we call the
6 pillars ofreforestation.
Matt Hill, Chief
Environmental Optimist at
One Tree Planted

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Baker Hughes55

Embed sustainability
as everyone’s
responsibility
Every employee has a role to playin our transformation. Becoming anenergy technology Company requires
a transformation at all levels of theorganization, including our culture.
To deliver the energy security andsustainability that makes affordable,
cleaner energy accessible to everyone
we must embed sustainability as
everyone’s responsibility at Baker
Hughes. All employees in all roles acrossthe Company can learn how to workand live more sustainably.
In 2022, we held knowledge sharing
sessions and two flagship events for
Earth Day and Environment Awarenessmonth. These activities along withregular communication throughour Renew Community are driving
awareness deeper into the organization.

Highlighting the Renew
Community
Working together in collaboration withtalented colleagues accelerates ourability to deliver on our sustainability
commitments. The Renew Community
provides a global network for our
employees with a mission to share
information, resources, and ideas on
how to operate more sustainably.
Renew is a crucial enabler of ongoing
innovation to improve operations andreduce CO2e emissions across our entire
value chain.
Our employees are eager to getengaged and learn about sustainable
habits. We will be developing
sustainability training, driving
engagement campaigns, identifying
incentives, and expanding the Renew
Community aimed at embedding
sustainable habits into all that we do.

The Carbon Out initiative showcases
how our employees are taking charge
and making a difference in their roles
today. Read more about Carbon Out on
pages 64-65.

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Baker Hughes

TOC | Letters | By the Numbers | About Baker Hughes | Sustainability | People | Planet | Principles | AppendicesFigure 4-12: 2022 Renew highlights

Mission
Employeeengagement andempowerment

Knowledge andresource sharing

External thought
leadership

Environmental
Awareness Month
September 2022

Knowledge
sharing sessions
all yearFlagship events
Earth Day
Challenge April
2022

Engagement
virtual2,062 Renew
engagementsin
538 Messages
the platform

292 Uniqueparticipants

Renew Membershipas
861 Membersof November
2022

244 2022
additions

28 Membershiproadshows

50+ Employees
recognized as
Sustainability
Champions

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57

Planet59 Performance snapshot
60 Our Planet strategy
62 Become a net-zero emissions business by 2050
66 Enable our partners to thrive in a low carbon world
70 Minimize the resources we use
78 Reduce spills and report them transparently

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Baker Hughes

TOC | Letters | By the Numbers | About Baker Hughes | Sustainability | People | Planet | Principles | AppendicesThis dashboard represents our progress on key performance indicators over time. We continue to improve our reporting by establishing quantitative goals and performance
metrics that contribute to the UN Sustainable Development Goals (SDG).

Planetperformance snapshot
SUSTAINABILITY PRIORITY

KEY PERFORMANCE INDICATORS

2020

2021

2022

Energy transition business
impacts and innovation

Product lifecycle assessments completed

1

7

43

Water withdrawn (million liters)

4,797

3,143

3,214

Water

SpillsWater consumed (million liters)

552

374

559

Water discharged (million liters)

4,245

2,769

2,655

Significant spills (barrels)

738

1,693

827

Oil spills (barrels)

28

6

37

Fuel spills (barrels)

<1

2

3

Waste spills (barrels)

<1

1

1

Chemical spills (barrels)

155

130

378

Hydrocarbon spills in the Arctic*

-

-

-

# of IUCN Red List Species# of species - Least concern
Biodiversity

Waste20SUSTAINABILITY PRIORITY

Emissions

201

392

71

251

# of species - Near threatened

-

4

14

# of species - Vulnerable

-

74

78

# of species - Endangered

-

39

38

# of species - Critically endangered

-

13

11

Waste generated (metric tons)

680,790

482,806

235,403

Waste recycled (metric tons)

214,043

125,22257,666

Waste disposed (metric tons)

466,747

357,584

177,737

KEY PERFORMANCE INDICATORS

2019

2022

Total scope 1 emissions (MT CO2e)

500,604

376,172

Total scope 2 indirect emissions - market based (MT CO2e)286,752

193,933

Total scope 1 and 2 emissions (MT CO2e)

787,356

570,105

Total scope 3 emissions (MT CO2e)

188,223,561 252,414,204

Production, imports, and exports of ozone-depleting substances(MT CFC-11 equivalent)**--% of electricity from zero-emission sources21

14%

26%

Total electricity (MWh)741,375

604,093

104,307

137,327

Renewable electricity (MWh)Non-renewable electricity (MWh)Energy1-

637,068

466,766

2,211,833

1,609,879

Diesel/Distillate (MWh)763,099472,915Natural gas (MWh)1,062,286

875,344

Gasoline/Petrol (MWh)384,407252,227

Propane (MWh)

2,040

6,797

Total fuels (MWh)

-

2,595

Total energy (MWh)Other fuels (MWh)2,953,208

2,213,972

Energy intensity (MWh/ $ of revenue)

0.000120.00010*New 2021 metric, **New 2022 metric
20

Change in methodology in 2022. Years 2020 and 2021 data were not recalculated and verified with new method and cannot be directly compared.

21

This 26% represents our total zero-emission electricity usage; this is the sum of renewable energy and nuclear energy (a non-renewable, zero-emission source).

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Baker Hughes59

Our Planet strategy
OUR GOALS

1. Pioneer low carbon
energy solutions todeliver value for ourcustomers

HOW WE WILL DELIVER SUCCESS• Enable our partners tothrive in a low carbon
world

Planet• Become a Net-Zerobusiness by 2050

HOW WE WILL MEASURE SUCCESS• Reduce scope 3 emissions by 2033
• YOY increase R&D funded by external sources• BH positioned early & recognized as key technology provider• Reduce scope 1 and 2 CO2e emissions by 50% by 2030
• Complete life cycle assessments for the >95% emissions intensive
products by 2026
• Complete proactive strategic policy framework for all growthareas

2. Champion
environmental
stewardship andminimize our footprint• Reduce spills and reportthem transparently• Minimize the resources
we use• Reduce spills at our sites• Reduce usage in water-stressed sites by 2030
• Reduce waste to landfill by 2030
• Assess 100% of sites for biodiversity risk by 2030 and implement risk
management programs for high-risk sites

While the world continues to address energy security,
sustainability, and affordability, the need and urgency ofcarbon dioxide equivalent (CO2e) reductions and conservationof environmental resources are becoming stronger.
Guided by our alignment with the Paris Agreement, we’ve
set out a clear pathway to reduce our scope 1 and 2 CO2eemissions to net-zero by 2050 and be a sustainable solutions
provider for our customers.
Our Planet strategy has environmental stewardship at its core.
We developed two key focus areas comprised of specificoutcomes to drive our strategy forward. Our performance tothese outcomes in 2022 is detailed in this section.
To address our Planet strategic goals, we leveraged
conservation measures, circularity, life cycle assessments,
and CO2e emissions reduction projects across our facilities
and field sites. Our efforts to drive sustainable operations areaccomplished by our greatest asset - our people.

What’s New for 2022
• Reduced our scope 1 and 2 CO2e emissions
from our 2019 base year.
• Expanded the breadth and depth of our
Carbon Out program to further operationalize
CO2e emissions reductions and drive
sustainable behaviors across the business.
• Scaled the adoption of our proprietary life
cycle assessment tool, FastLCA, to measure
the carbon footprint of our products andservices.
• Deepened our supplier engagement to better
understand supplier CO2e emissions data forour top tier suppliers.
• Continued to advance automationof emissions data and strong internal
controllership of all Planet data.
• Continued expansion of third-party assurance
to include our waste metrics.

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Baker Hughes

TOC | Letters | By the Numbers | About Baker Hughes | Sustainability | People | Planet | Principles | Appendices

28%

Reduction in scope 1
and 2 CO2e emissions
from our 2019baseline

26%

Electricity sourced
from zero-emission
sources10

Scope 3 emissions
categories reportedwith limited
assurance

57,666
Metric tons ofwaste recycled

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Baker Hughes

61Become a net-zero emissions business by 2050
In 2022, we advanced progress on our net-zero journey andfurther refined our calculation and estimation methodology
to improve our reporting processes. Our main reduction
pathways were a result of executed energy efficiency
initiatives, facility consolidations, and increased electricity
from renewable and zero-carbon sources.

Figure 5-1: Total scope 1 and 2 emissions by year (MT CO2e)
Scope 1

Scope 2, market based

286,752

As an energy technology company, we strive to reduce ourCO2e emissions in our manufacturing, operations, and how
we provide services to our customers. This will be achieved
through increased energy efficiency throughout ouroperations, and adoption of renewable electricity across ourglobal footprint of facilities.

Scope 1 and 2 CO2e emissions
reduced by 28% through 2022
We are striving to reach our interim target of reducing
scope 1 and 2 CO2e emissions by 50% by 2030. We
compare our emissions reduction progress to a 2019base year. We utilize this base year, as it was the firstfull performance year of the Company following thespin out of Baker Hughes from GE. Additionally, 2019
was a typical year from an operations standpointand did not have an artificially high or low emissions
performance year for scope 1 and 2. It was, however,an anomolously low year in terms of our Gas Techequipment string testing, which utilizes natural Gas
Tech. Thus, the use of natural gas has increased as
we have performed more equipment testing, but weare working to find alternative sources of renewable
natural gas for this testing.
•During 2022, our combined scope 1 and 2 CO2eemissions were 28% lower than our 2019 base year.

•

Our scope 1 emissions decreased from 500,604 MT
CO2e in 2019 to 376,172 MT CO2e in 2022.

•

Our scope 2 emissions decreased from 286,752 MT
CO2e in 2019 to 193,933 MT CO2e in 2022.

193,933
500,604

376,172

2019

2022

Table 5-1: Scope 1 and 2 emissions by year (MT CO2e)
2019

2022

REDUCTION
FROM 2019(MT CO 2E )% REDUCTIONFROM 2019

Scope 1500,604

376,172

124,432

25%

Scope 2market based22

286,752

193,933

92,81932%

Scope 2location based

295,317

210,90284,415

29%

Total

787,356

570,105

217,251

28%

Table 5-2: Scope 1 emissions breakdown (MT CO2e)
2019

2022

% REDUCTION FROM 2019

Facilities

161,557

111,871

31%

Vehicles141,380

92,24335%

Field activities

197,667

172,058

13%

Total

500,604

376,17225%

31%

in CO2e emissions from all
Baker Hughes controlled facilities
in 2022 versus our 2019 base year.

reduction

22 Please see Note 2 - GHG reporting organizational boundaries, Statement and Notes on Greenhouse Gas CO2e Emissions for definition of market-based.

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Baker Hughes

TOC | Letters | By the Numbers | About Baker Hughes | Sustainability | People | Planet | Principles | AppendicesInitiatives that contributed to facilities
CO2e emission reductions included:• Dedicated energy conservation
efforts and daily process changes.
• Implemented sustainable standards
in new building construction,
renovation, and retrofits.
• Reduced time and energy usage
during the manufacturing process.
Field activities and fleet emissions both
had a reduction from our base year of
2019, however, there was an increase in
our CO2e emissions in both categories
compared to last year’s totals primarily
due to an increase in activity for ourcustomers that required more driving
and fuel consumption at field sites.
Despite these headwinds, our total
scope 1 and 2 emissions have improved
year-over-year.
• 35% CO2e emission reduction fromfleet activities compared to our 2019base year.
• 13% CO2e emission reduction in field
activities versus our 2019 base year.
For fleet and field related emissions, we
continued to execute on CO2e reduction
activities such as:• Tracking and reduction of
unnecessary vehicle idling throughour Idling policy and vehicle
monitoring program.
• Optimizing schedules, logistics, andrental car solutions.
• Encouraging carpooling or ride share
opportunities for employees.
• Improved operational efficiency withfleet and vessels to reduce CO2eemissions during transportation andother field activities. Projects include
idle reduction and ship to shore
power projects.

Powering our sites withrenewable and zeroemission electricity
We continued to find opportunities
to use renewable and zero-emission
energy sources both onsite and offsite
across all our global locations. From
the United States to Brazil, Italy, andSingapore, we continued to procure
renewable energy through powerpurchase agreements (PPAs), andcollaborations with retail energy
providers. We continued to adhere to
our policy of not utilizing carbon offsets
until such time that all achievablecarbon reduction is completed.
At Baker Hughes, our emissions
reduction strategy, in the short andmedium term, does not include theuse of carbon offsets or virtual powerpurchase agreements (vPPAs). Our
strategy to reach our emission reduction
goals leverages Renewable Energy
Credits (RECs), Renewable Energy
Guarantees of Origin (REGOs), or similar
certificates when tied to a local market
of electricity generation or PPA.
In 2022, we redefined our methodology
to further specify how we apply zeroemission certificates. Our revised
boundary includes Baker Hughes sites
in unregulated regions, and excludes
sites located in regulated regions
which require using a specified energy
provider. With these changes to our
methodology, we continued to meet allexisting GHG Protocol guidelines and the
CDP’s RE100 requirements for credible
renewable energy usage claims. Thisaligned to our internal carbon offset
policy which restricts the application ofRECs and REGOs to the local markets
in which the electricity was generated.
For North American markets, we define

Figure 5-2: Total electricity used in 2022

26%

Of our electricity comes fromrenewable or other zero-emission
sources, such as nuclear.
Non-Renewable,
zero-emission

20,575

Renewable,
zero-emission

137,327

MWh

NonRenewable

446,191

Table 5-3: Energy use by category (MWh)
2019

2022

104,307

137,327

Non-Renewable
637,068
electricity

466,766

Total electricity 741,375

604,093

Diesel/Distillate

1,062,286

875,344Natural gas

763,099472,915

Gasoline/Petrol

384,407252,227

Propane

2,040

6,797

Other fuels

-

2,595

Total fuels

2,211,832

1,609,878

Total energy

2,953,207

2,213,971

Renewable
electricity* Our non-renewable category includes energy from
non-emissive sources such as nuclear power. This
subsection of non-renewable zero-emission energy isillustrated in Figure 5-2.

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Baker Hughes

63Amber Higginbotham | Technical Mechanic; Steve Meyer | Technical Mechanic; Anuradah Bhattaram | Lead Engineer, Mechanical Engineering
Yuta Suzuka | DB Global Materials Director; Justin Jamail | Technical Machinist“local market” as electricity generated or purchased within
the same state where electricity is used. By applying thismore conservative definition, we effectively limited the total
claimed RECs to local markets and reduced the overall
amount of renewable energy we claim. This approachsets a new standard whereby our stakeholders can havehigh confidence in our commitment to reducing our direct
impact in communities in which we operate.
Zero-emission energy made up 157,902 MWh/Yr, or 26%, of
our annual electricity usage in 2022. We are proud of ourresults, but acknowledge that we need to bring even more
renewable and zero-emission energy into our mix. This year,
the percentage of our renewable electricity usage year
over year remained flat, but despite this result, initiatives
across our business contributed to our continued progress.
We reduced the REC usage in areas where we brought
direct renewables online, and we also drove efficiencies
to reduce electricity use at facilities that utilize renewableenergy. In those examples, we worked to prioritize direct
renewable use over RECs, and focused on the overall
reduction of energy consumption at sites. We strive tobring energy forward, and while we have work to do, we arefocused on the journey along the path to net zero.

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Baker Hughes

All in. Carbon Out.
Our Carbon Out program aims to educate and empower
every employee to have an active role in our scope 1 and 2
reduction efforts. Sustainable practices and employee-driven
solution identification drive carbon out of our daily operations.

Our Carbon Out program empowers our businesssegments to prioritize CO2e emissions reductions byidentifying projects that meet our pathway criteria forthe road to net-zero operational CO2e emissions.

Since its launch in 2021, our Carbon Out program has
engaged employees and leaders from across the businessto enable them with the knowledge, training and resources
to systematically reduce our operational CO2e emissions.
Employees in all parts of Baker Hughes are empowered to
identify CO2e emissions reduction solutions that are reviewed
and approved to ensure timely, efficient, and cost-effective
implementation of CO2e emissions reduction solutions.
Direct carbon removal projects, such as CCUS, have been
considered for longer term abatement pathways.

TOC | Letters | By the Numbers | About Baker Hughes | Sustainability | People | Planet | Principles | AppendicesIn 2022, our Carbon Out program
expanded in breadth and depth of
impact through:• A network of over 260 employeesthat are Carbon Out champions
across both business segments.
These employees represent multiple
corporate disciplines, such as HSE,
supply chain, sourcing, real estate,field service engineers, and finance.
The goal of our champion network
is to build and execute a pipeline ofprojects that enable us to achieve
CO2e emissions reduction throughout
our operations.
• Sustainability educational materials
and opportunities to equip our
employees with the right knowledge
and skills sets to identify qualifying
projects. Participants of our coreleadership training programs ASPIRE, CULTIVATE, and IMPACT - were
engaged in the Carbon Out program
to grow sustainability skill sets. In
addition, over 400 employees acrossthe Company from 27 countries
participated in sustainability focusedtraining opportunities to expand theircapabilities.

Consistent engagement and awarenesscampaigns in the last year haveincreased our focus on sustainability
in our operations and contributed toa mindset shift among our employees
to adopt more sustainable practices
in their day to day lives. We believe thistransformation is foundational to beinga sustainable business.

Quantifying our carbon
footprint through life cycle
analysis
Understanding, quantifying, andreducing our direct and indirect CO2eemissions across the value chain is
integral to our progress on the path tonet zero. To ensure that we establish an
accurate representation of our CO2eemissions footprint, we utilize life cycle
assessments (LCAs) across our portfolio
of product offerings. LCAs quantify
CO2e emissions that will occur during
the life of a product or service. Thisquantification has directed our focus forcarbon-reduction opportunities acrossour value chain by assessing CO2eemission impacts during:• Crowdsourced ideas and employeedriven initiatives across the Company
helped to build a pipeline of new
CO2e emissions reduction projects forreview, consideration and funding.

• product design;• HSE training of over 2,200 employeeson energy efficiency, energy
efficiency/factory assessments,and submission of over 300 ideas
to improve energy efficiency andreduce carbon emissions across ourglobal facilities.

• product installation and use; and• material selection;• component sourcing;• manufacturing processes;• disposal of our products.
In 2022, we launched our proprietary
life cycle assessment (LCAs) tool FastLCA — across all products lines todrive the quantification and analysis of
the estimated cradle-to-grave CO2eemissions impact of our products
and services.

Figure 5-3: Number of product life cycle
assessments 2021 v. 2022
56
43

7

2

2021
Completed LCAs

2022
LCAs in progress

FastLCA is a tool aligned to the ISO
14067:2018 standard that features thecapability to calculate complete life
cycle assessments for three applications:• specific products or services;• systems of products or services; and• comparative analysis between
products.
The comparative analysis feature
helped to provide important insights
into efficiencies gained through new
product innovations. Our LCAs provide
our customers with verified informationon the CO2e emissions footprint ofour products. As part of our overallsustainability strategy, we are working toquantify the lifecycle CO2e emissions of
all of our major product groups.
Our product lines completed a total of
43 life cycle assessments in 2022, withan additional 56 LCAs in progress. Thisis a significant improvement from our2021 totals when the LCA tool was indevelopment; 7 LCAs were completed
and 2 LCAs were in progress for 2021.
Each LCA undergoes a rigorous review
by a third party and is documented toshow adherence to the use of FastLCA
tool and underlying ISO standard. This
early adoption within our businessdemonstrated our commitment to CO2eemission reductions for our operations
and our customers value chain CO2eemissions.

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Baker Hughes

65Enable our partners
to thrive in a low
carbon world
To be a sustainable business, we must
help our partners across our entire value
chain to be more sustainable.
This section highlights our work withour customers and suppliers to
improve their operational efficiency bydeveloping and deploying less emissive
technologies, partnering with suppliers
to understand their current CO2eemissions and reduction strategies, andreducing our scope 3 CO2e emissions,which are scope 1 and 2 for our suppliersand customers.

Engaging our suppliers
We understand that our environmental
impact is a result of activities across ourentire value chain, and we work closelywith our suppliers to identify our upstream
CO2e emission reduction opportunities
across our shared value chain.
We achieved an important milestone
in our efforts for supply chain CO2eemission reductions in 2022 bybecoming a supply chain member of
CDP. Our membership has enabled us towork with our suppliers to support theirCO2e emission reduction activities bydisclosing CO2e emissions data, while
also gaining insights from our suppliers’
CDP disclosures.
A key priority for us in 2022 was toimprove supplier engagement andshare learnings. In addition, as part ofour Principles strategy, we aim to assess
our active suppliers on environmental
criteria every three years. As part ofthis effort, this year we launched our
first annual CDP CO2e emissions survey
and collected 2021 disclosures from 152
suppliers - a response rate of about 30%.

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Baker Hughes

This survey focused on the upstream
portion of our value chain and engaged
our vendors in preliminary assessmentsof their CO2e emissions footprints. We
developed a live dashboard to monitor
the survey response submissions
and increase visibility to outstanding
responses and information.
We also organized webinars, supplierconferences, and workshops to engage
our vendors on CO2e emissions and risk
management. Internally, we conductedperiodic “supply chain days” to educate
our supply chain employees in thespecifics of how they can impact our
CO2e emission reductions through their
day-to-day work.

Scope 3 CO2e emissions
While our journey to net zero for scopes
1 and 2 emissions is impactful, scope 3
emissions account for several ordersof magnitude more emissions. In 2022,
we worked to set an internal target
to reduce our scope 3 emissions andexpanded the quantification of our value
chain emissions. Specific initiatives will
be actioned through our Carbon Out
program as we develop and advance ourscope 3 emissions reduction roadmap.
In 2022, our overall scope 3 emissions
increased by 34% over the 2019 baseyear, in conjunction with increased
activity and orders. However, at acategory level, emissions were lower
for both business travel and employee
commuting. With hybrid work schedules
and expanded digital communications
options, our employees traveled less in
2022 than they did in 2019. We enhanced
our methodology and replaced regional
averages with employee-provided datafrom our commuting survey. The survey
data provides greater accuracy whichwith we calculate our overall carbon
CO2e emissions. Previous estimates
resulted in an overstated level ofemissions attributed to commuting.

Logistics improvements led to a 41%
and 31% decrease in our category 4 and9 emissions, respectively. Decreased
reliance on air freight yielded significant
emissions reductions in the conveyanceof goods on both the upstream anddownstream ends of our value chain.
Last year, energy markets shifted andbegan to rebalance, more heavily
favoring natural gas to meet the everincreasing demand for energy. This shift
has resulted in increased demand forequipment required to bring additionalenergy online. In 2022, the sale of 16
turbines along with an increase inelectrical motor sales led to a 35%
jump in our category 11 emissions. This
increased activity further created theneed for more forged materials andchemicals, impacting the emissions ofpurchased goods and services (scope 3
category 1).
The increase in our category 5 emissions
is largely attributed to higher volumesof land filled commercial and industrial
waste in 2022. In addition to the increased
volume, we shifted to a more accurate
methodology for waste estimation.
In 2022, the total revenue of our invested(category 15) entities grew by 8%compared to 2021. As a key variable inour category 15 emissions estimation,
this revenue growth is the leading driverfor higher emissions as compared toour 2019 baseline. Our methodology will
improve as we incorporate operationalemissions data from our investments.
As an energy technology company
focused on being a sustainable pioneer
in all we do, our strategy is focusedon developing abatement solutions
and embedding additional emissions
savings into multiple categories
associated with our value chain.

TOC | Letters | By the Numbers | About Baker Hughes | Sustainability | People | Planet | Principles | AppendicesTable 5-4: Scope 3 emissions (MT CO2e)
CATEGORY

2019

2022

1

Purchased goods and services

4,602,303

5,718,784

2

Capital goods

298,734

233,574

184,214136,224

536,642

317,937

3

4

Total scope 3

Fuel- and energy-related activities (notincluded in scope 1 or scope 2)

Upstream transportation anddistribution

5

Waste generated in operations

20,612

79,284

6

Business travel

100,624

56,454

7

Employee commuting

151,941

101,404

9Transportation and distribution

518,908359,773

11

Use of sold products

181,576,472

244,794,528

15

Investments

233,111616,242

188,223,561

252,414,204

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Baker Hughes

67

Climate change asa financial risk andopportunity

Accordingly, climate change risk andopportunity assessments at Baker
Hughes were conducted to include
these time horizons.

We recognize the challenges of climatechange, but we also see the opportunities
for growth that stem from a resourceconstrained but innovative world. By
positioning ourselves to support thetransition to a low carbon economy, we
will enhance our business resiliency byproviding new commercial opportunities
for us and our customers while managing
physical risks to the Company.

In line with the TCFD recommendations,
we divided our risk assessment into two
major categories: risks related to thephysical impacts of climate change andrisks related to the transition to a lower
carbon economy.

To position ourselves for long-term
success, our business, in accordancewith the Task Force on ClimateRelated Financial Disclosures (TCFD)
recommendations, undertook
quantitative climate change scenario
analyses and opportunity hotspot
mapping. These analyses helped
provide more insight on climate issues
that could impact the business andoutlined the potential impact overthree-time horizons: short-term (5years), medium-term (5-10 years),and long-term (beyond 10 years).

Physical risk management
A comprehensive and robust physicalrisk assessment program is important tosatisfy the requirements of governments
and regulatory bodies in a growing
number of countries and to enable
informed decisions on where and whento allocate our capital and resources toprevent or mitigate impact of climatechange. Baker Hughes’ physical risk
assessment determines financial
exposure to damages, businessdisruptions and productivity losses for
all Baker Hughes facilities, as well as theselected sites of our critical suppliers.
We model impact of severe weather
events for the four relevant weather

perils: flood, wind, extreme heat andwildfires, using Jupiter ClimateScoreTM
predictive climate data analytics forthree Intergovernmental Panel on
Climate Change’s (IPCC) fifth revisionof projected socioeconomic globalchanges scenarios (IPCC SSP5): RCP2.6,
RCP 4.5 and RCP 8.523.
For Baker Hughes’ operational footprintin 2050, we estimate average annual
maximum losses of approximately $49.1
million in damages, $165.9 million inbusiness disruptions and approximately$10.4 million in productivity losses basedon a greater than 4°C IPCC climate
scenario (SSP5-RCP8.5), with total
maximum exposure of $225.4 million,
a 14% increase compared to $197.8
million in 2020. Higher risk exposure in
2050 is driven by the rising probabilityof extreme weather events or theirincreased severity for some locationsin the next 30 years. Detailed weather
risk profiles and related financial risk
exposure calculations are available
for every single facility, country,
business segment, and product line.
We incorporate the results of thisassessment into our business continuity
and facility response planning,

23 RCP: Representative Concentration Pathway is a greenhouse gas concentration trajectory.

68

Baker Hughes

TOC | Letters | By the Numbers | About Baker Hughes | Sustainability | People | Planet | Principles | Appendicesprioritizing our mission critical sites and sole source suppliers
in locations with moderate to high risk. Furthermore, thedata is beneficial in mid- and long-term strategic businessplanning, helping to identify and mitigate risk exposures
to Baker Hughes’ infrastructure and logistics. Data is also
harmonized with our environmental impact investment
decisions to ensure that we are managing cost and risks
using all available information.

Transition risks and opportunities
The transition risk assessment derives estimated financial
impact on our business from modelled portfolio responses
to four energy market scenarios as published by theInternational Energy Agency (IEA): the 1.5°C Net Zero Emissions
Scenario, the <2°C Sustainable Development Scenario,
the Announced Pledges Scenario, and the Stated Policies
Scenario. The four IEA scenarios encompass a broad range
of energy market scenarios that, when applied to ourexisting portfolio, might translate to a wide range of revenue
impacts across our different businesses. In some cases,
these scenarios yield an estimated revenue from our current
portfolio.
While we recognize the potential for transition risk, Baker
Hughes is playing a key role in enabling an orderly low carbon
energy transition. Our future success may depend upon ourability to effectively execute on our energy transition strategy.
Our strategy depends on our ability to develop additionalinnovative technologies and work with our customers andpartners to advance new energy solutions such as CCUS,
hydrogen energy, geothermal, and other integrated solutions.
If the energy transition landscape changes faster than

anticipated or faster than we can transition, or if we fail to
execute our energy transition strategy as planned, demandfor our technologies and services or access to credit could be
adversely affected.
Transitioning to a low-carbon economy will likely require
extensive policy, legal, technology, and market changes.
There is increased focus by governments and our customers,
investors and other stakeholders on climate change,sustainability, and energy transition matters. Negative
attitudes or perceptions of our industry or fossil fuelproducts and their relationship to the environment haveled governments, non-governmental organizations, andcompanies to implement initiatives to conserve energy andpromote the use of alternative energy sources, which may
reduce the demand for and production of oil and gas inareas of the world where our customers operate, and thus
reduce future demand for our products and services. In
addition, initiatives by investors and financial institutions tolimit funding to companies in fossil fuel-related industries
may adversely affect our liquidity or access to capital.
In the long-term scenario, we predict that our existing
portfolio will generate growth under the Stated Policies
Scenario, accompanied by increasing revenue contributions
from our energy transition portfolio. We also estimate thatany potential material declines in revenue from our current
portfolio under the Announced Pledges Scenario, theSustainable Development Scenario, or the Net-Zero Scenario
can be mitigated by revenue growth from our energy
transition portfolio.

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Baker Hughes

69

Minimize the resources we use
We are committed to minimizing the environmental
impact across our facilities, through the services weprovide at our customer sites, and in the communities
where we operate. We take a holistic, risk-based approachto make progress towards our commitments. Our
robust environmental management system provides
a framework for innovative technologies along withproactive learning and improvements. We strive tominimize our water, waste, and ecological footprints.
Below are the key objectives and outcomes we aremeasuring against to advance our goal of environmental
stewardship.

Our environmental management
system helps us minimize resource use
Our environmental management system (EMS) is built
on stringent environmental standards that we set
for ourselves and meet or exceed global regulatory
requirements. Our EMS is aligned to ISO 14001:2015 andprovides a framework for continual improvement, risk
assessments, global procedures, training, reporting, andassurance and control measures. It has helped us work
towards achieving our emissions reduction goals while
reducing our operational environmental footprint. This
framework also enabled us to track our production output,
using a combination of internal validation and third-party
assessments.

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Baker Hughes

The following procedures are included in our management
system and are applicable to all of our sites andoperations globally:1.

Agency visits

2. Air emissions management
3. Chemical management
4. Due diligence for property transactions
5. Due diligence for business transactions
6. Environmental reporting
7. Emergency response
8. Energy management and efficiency
9. Land quality protection and secondary containment
10. Spill prevention and response
11. Waste management and minimization
12. Waste vendor audits
13. Water quality protection
We utilized a tiered approach that enabled customization
at the regional, product line, or site level based on local
requirements or risk profiles.

TOC | Letters | By the Numbers | About Baker Hughes | Sustainability | People | Planet | Principles | AppendicesFigure 5-4: Waste volume (metric tons)
177,737

Hazardous

15

Non-Hazardous

65,185E-wasteMetals

57,666

112,537

27,483
173
22,2497,761

Disposed

Recycled

Table 5-5: Waste volume (metric tons)24

Managing waste

RECYCLEDDISPOSED

GENERATED

Hazardous

7,761

112,537

120,298

Non-hazardous

22,24965,18587,434E-waste

173

15

188

Metals

27,483-27,483

Total

57,666

177,737

235,403

In 2022, we assessed our methodology for how
we calculate our waste production acrossour business. The primary change included
modification to our estimation process; we now
include an additional level of precision by including
facility square footage, rather than only facility
type, to increase accuracy of estimated waste
generated per site. Additional changes to themethodology included:• Improvements made to fill gaps and data
coverage.

Other offsite
recovery options• Reclassified reconditioned drums as recycledthat were previously classified as waste.
• Removed data from outside the active period
for estimations.
Our sites continued to follow our formal procedure
for waste management and minimization, which
requires that all waste types be identified andtracked. We provide guidance to promote efforts
to minimize waste volumes and increase therecycling and reuse of materials at each facility.
Because of these methodology changes we areunable to make a YOY comparison; however,as a part of our strategic efforts to focus on ourenvironmental impact, we set an internal target
and commit to reducing waste to landfill by 2030.
We prioritize the responsible use of natural
resources through quality control and assurance
processes, thus minimizing scrap and wastematerials.

Table 5-6: Waste diverted from disposal by recovery
operation (metric tons)25
HAZARDOUS
WASTE

E-WASTEMETALS

Offsite preparation
for reuse

NONHAZARDOUS
WASTE

629

801

6

-

Offsite reclamation

3

221

-

-

Offsite recycling

-

-

167

-

Offsite material
recovery operations

-

-

-

27,483

7,129

21,227--

Total waste recycled

57,666

Table 5-7: Waste prevented from disposal (metric tons)
TOTAL WASTE PREVENTED

Former waste to product conversion

1,266

Table 5-8: Waste directed to disposal by disposal operation(metric tons)25
HAZARDOUS
WASTE

Offsite incineration with energy
978
recovery
Offsite incineration without
2,062
energy recovery

NONEHAZARDOUS
WASTE
WASTE

1,940

-

1,875

-

Offsite landfilling

4,210

24,986-

Other offsite disposal
operations

105,287

36,384-

Disposal--

15

Total waste disposed

177,737

24 Methodology for 2022 changed. Historic data not comparable due to methodology change.
25 There were neither onsite disposal operations nor onsite recovery operations in 2022.

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Baker Hughes

71

There were various global efforts that
contributed to our waste reduction
efforts in 2022:• The OFSE Aberdeen, Montrose,and Nailsea sites in the United
Kingdom continue to diligently
work on segregating waste into theappropriate streams, which has
helped them recycle 200 wood
pallets per year.
• Our Florence, Massa, andAvenza sites in Italy make waste
management a priority andimplemented several new initiatives
last year:◊ Implementation of higher
concentrated cleaning productsthat are 100% biodegradable. This
resulted in a reduction of singleuse plastic containers.
◊ All paper tissues on site are madefrom recycled paper.
◊ Wood waste generated fromthe three sites was repurposed
rather than disposed, promoting
circularity.
• To reduce single-use plastic waste,sites in India and the Ivory Coast
implemented a program to assign
refillable water bottles to every site
employee. It served as a pilot andthe same initiative is now being
implemented in Congo and Gabon.
• Our blend plant in Rayne, Louisiana
successfully implemented a reuseprogram to convert a waste stream
to product, resulting in a 366 MT
reduction in waste volume.
• In line with the UAE’s no landfill policy,

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Baker Hughes

our facility carried out an e-waste
recycling drive, where 1,850 kg ofe-waste were sent to be recycled.
• Our Malaysia facility hosted a drive torecycle textiles, preventing 334 kg oftextiles from being sent to disposal.
The organizational boundary for our waste
and recycling metric includes facilities
under our operational control that are
active at any time during the calendar
year and does not exclude divestitures.
This allows our local teams to more easily
identify reduction opportunities and trackprogress in the future.
Waste generation, management anddisposal are subject to stringent local,
national and international regulations
across our operations. Such regulations
include compliance requirements
for waste segregation, storage,transportation and disposal.

Promoting circular economy
We promote circular economy
principles of minimizing resource use
through reuse, repair, and refurbish. We
are committed to reducing our volume
of waste by using resources wisely andincreasing the recycling of materials
within our business. Circularity was
identified as a critical component of ourwaste reduction strategy.
Our teams continue to engineer
products with circularity in mind with afocus on resource optimization, reduced
resource consumption, and recovery
of end of life products and waste byrecycling or giving it a second life as a
new product.

While we have engaged in asset
optimization activities since 2015, we
increased our focus on internal asset
reuse and remarketing as strategies
to reduce waste in 2022. The global
redeployment and remarketing
program utilizes multiple tools tomanage redeployment of assets
within the Company and remarketingof used assets, including an internal
redeployment catalog. Before an asset
is considered for resale, it is inspected
to be redeployed internally. Part ofthe capital asset approval process ischecking the internal redeployment
catalog to make sure there is notanything available before purchasing
new capital assets.
Not only are these programs costeffective, but they also contribute to
reducing waste and promote circularity.
Our equipment is designed for durability,and new technology can be injectedduring the life of our machines to boost
asset performance. Our Industrial andEnergy Technology business segment is
continuously working on many projects
to refurbish customer equipment toenhance efficiency and plant output
while minimizing waste. Electrification,
efficiency improvements, gas recovery
from vent or flare, and fueling withhydrogen gas turbines are someexamples of upgrading projects thatlead to emissions reductions.

TOC | Letters | By the Numbers | About Baker Hughes | Sustainability | People | Planet | Principles | AppendicesWater stewardship
We are committed to conserving and protecting freshwater
resources throughout the water cycle — from withdrawal,
to use and eventual reuse or discharge. To advance thiscommitment, in 2022, we added a water reduction goal to ourstrategy to reduce usage at water-stressed sites by 2030.
Each year we engage internal resources to improve therobustness of our data collection process. In 2022, we
improved data accuracy by adding 19 sites that are reporting
actual water usage rather than estimating. We also improved
our estimation method by including facility square footage in
addition to facility type.
This year our total water withdrawal increased by 2% from
3,143 Megaliters (ML) in 2021 to 3,214 ML in 2022. Our total water
discharge was down 4% from 2,769 ML to 2,655 ML. Thesechanges were due to sites installing water meters to report
usage rather than estimating and ensuring data is being
categorized and reported correctly.

The increase in water withdrawal and decrease in water
discharge resulted in a 49% increase in water consumption
compared to 2021. The sites that mainly contributed to thisincrease had an increase in operational activity this year andan increase in testing processes that don’t return water into
circulation.
We assess areas of water stress using the World Resources
Institute’s Aqueduct tool. Since 2020, we have used Aqueduct
for an annual review of our water use across the globe. In
2022, our water consumption in water-stressed areas stayed
consistent with our 2021 consumption at 13 ML. Our water
withdrawn from these areas increased 65% from 249 ML in
2021 to 410 ML in 2022. However, water discharged to theseareas increased by 68% from 236 ML in 2021 to 397 in 2022.
This year, an additional six sites were reclassified to awater risk area. The site reclassifications and reporting
improvements made in 2022 both contributed to the observed
increase in water withdrawal and discharge in these areas.

Table 5-9: Water use (ML)
2020

2021

2022

WITHDRAWN

CONSUMEDDISCHARGED

WITHDRAWN

CONSUMEDDISCHARGED

WITHDRAWN

CONSUMEDDISCHARGED

Surface

249

-

27

4

-

51

0.1

-

55

Groundwater

485

-

90

487

-

105

618

-

45

Municipal

4,063

-

4,128

2,652

-

2,606

2,596

-

2,536

Seawater

-

-

0.2

-

-

7

-

-

19

Total

4,797

552

4,245

3,143

374

2,769

3,214

559

2,655

Table 5-10: Water use in water-stressed areas (ML)
2020

2021

2022

WITHDRAWN

CONSUMEDDISCHARGED

WITHDRAWN

CONSUMEDDISCHARGED

WITHDRAWN

CONSUMEDDISCHARGED

Surface

1

-

16

-

-

7

0.1

-

27

Groundwater

81

-

1

54

-

15

152

-

15

Municipal

408

-

449

195

-

212

258

-

349

Seawater

-

-

0.2

-

-

2

-

-

6

Total

490

24

466

249

13

236

410

13

397

TOC | Letters | By the Numbers | About Baker Hughes | Sustainability | People | Planet | Principles | Appendices

Baker Hughes73Water conservation in action
Italy: Our Florence and Massa sites utilize an automatic
supervision system for all drinking water pipes that
reduces leakages. In 2022, we increased field instruments
to measure and monitor effective water flow in all drinking
pipes for these sites, which allows for better, quicker,
and more effective water management. There was an
8% reduction of water consumption compared to theprevious year at our Learning Center in Italy due to theinstallation of electric valves with timers to close/interrupt
flow for drinking water pipes during the weekends.
The teams identified and fixed water leakages fromold pipes from the Arno River — one of the key water
streams of the region - to our Nuovo Pignone plant. The
guaranteed flow rate was approximately 25 m3 per hour ofwater, and the water leakage was estimated to be over 8
m3 per hour. Diagnostics, excavations, camera inspections,and other techniques of inflating noble gas in the pipes
were run to detect and successfully fix the leakage.

Best Environmental Project of the Year — Runner up

at EGYPS Global Sustainability in Energy Awards 2023
Baker Hughes India Watershed project

Our employees in India combated desertification with
an ambitious soil and water conservation project to help
farmers and the local community through an integrated
watershed management project (see above). In 2022,
280 hectare of watershed treatments were completed,resulting in 1,040 million liters of water storage and 6,450
tons of CO2e soil carbon sequestration by end of 2022.
The project not only resulted in soil and water
conservation in rural farmlands by educating farmers to
adopt sustainable farming and agribusiness practices
that protect enhanced soil carbon and water content,
but it also enabled and empowered local community
members (especially women) to develop sustainablestreams of income.
The initiative won a runner up award for Best
Environmental Project of the year at EGYPS 2023 Global
Sustainability in Energy Awards.

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Baker Hughes

Risk identification and mitigation
Water risks were identified and assessed utilizing the World
Resources Institute’s Aqueduct tool, which produced adigital risk map that provided a consolidated view ofCompany facilities and operating environments. As of
year-end 2022, 81 sites were in an area of high water riskand 65 were located in an area of extremely high-waterrisk based on their physical, regulatory, and reputationalrisk profile.
The global environment team oversees water quality
standards and provides site teams with effective tools
to manage risks, promote effective water management,
and elevate our conservation practices. Our global water
quality protection procedure sets the minimum standards
and requirements for all sites and operations globally,
regardless of risk profile. Sites with high or extremely
high water risk are required to complete an additional
assessment (see Table 5-11) to evaluate their activities
where water is used, and identify options for conservation,
improved efficiency and risk mitigation.
Water conservation and management assessments werecompleted at 94 locations in 2022.

TOC | Letters | By the Numbers | About Baker Hughes | Sustainability | People | Planet | Principles | AppendicesTable 5-11: Water conservation and management assessment
TOPIC

AIMS TO

Focuses on activities that warrant evaluation of water use,
including:• Equipment or chemical manufacturing
Screening• Vehicle or tool washing• Hydrotesting and laboratory operations• Cleaning activities including line/vessel rinse• Outdoor water use/irrigation
Evaluates actions related to the following:• Installation and monitoring of water meters• Leak detection and repair programs

Monitoring andeducation• Implementation of control measures and water shutoff• Use of “dry” cleaning methods where feasible• Optimization of water pressure to equipment needs• Increasing awareness of water conservation andmanagement
Identifies equipment or conservation measures associated with:• Fixtures, equipment, and valves inspection and maintenanceFixtures andequipment• Automatic sensors and metering of faucets• Wash bay efficiency evaluations including pre-rinse• Options for equipment water supply including flow rate
• Evaluation of cooling towers, boilers, and chilled water
systems
Provides options for improved water management including:• Using drip system or weather- based irrigation system

Outdoor wateruse• Maintaining irrigation system components on a routine basis• Exploring opportunities to plant native/drought-tolerant
species• Evaluating reuse of “grey water” for irrigation
Evaluates laboratory activities and provides process
improvements to minimize water usage, including:Laboratory
equipment• Assessing purified water usage and reduction opportunities• Optimizing vacuum pumps and steam sterilizer usage• Routine inspection of recirculating systems as well as fume
hood filtration systems to ensure proper functionality

Sharing ideas

Provides a forum to collect input, questions, or topics notincluded in the assessment.
• Includes a formal opportunity for site personnel to share bestpractices

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Baker Hughes

75Conservation in action:• Renew Community of Interest and the

Women’s Network ERG hosted a native tree
planting activity where they planted droughttolerant, native Ghaf trees at the International
Center for Biosaline Agriculture.

• Our team in Singapore organized a beachcleanup on Coney Island (Pulau Serangoon),removing 70 bags of marine trash from thepark.
• In Brunei, Baker Hughes and the Brunei Forestry
Department planted 260 trees in the Sungai

Liang Forest Reserve.

Employee volunteer tree planting in Texas

Protecting biodiversity
and natural capital
Biodiversity is our strongest natural
defense against climate change, andwe strive to protect and conserve
biodiversity and natural ecosystems.
Deforestation can adversely impact
biodiversity, increase greenhouse gas
emissions, and contribute to climatechange. We believe that conserving andprotecting ecosystems is necessary tomeet the Paris Agreement goals, theUnited Nations Sustainable Development
Goals, and our Company's commitment
to environmental sustainability.
We are committed to minimizing
our adverse impacts on biodiversity,
protected areas, and areas of significant
biological value at or near all ouroperational sites. We endeavor tominimize our environmental footprint,
conserve natural habitats, and protect
and restore ecosystems throughnature-based projects. As part of ourcommitment to biodiversity, our strategy
aims to assess 100% of sites on biodiversity
risk by 2030 and implement risk
management programs for high risk sites.

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Baker Hughes

Our conservation efforts focus oninternal standards for establishing sites
in new areas, sound environmental
practices throughout our existing
operations, volunteer efforts by our
employees, and foundation grants to
support environmental efforts.
Through the Baker Hughes Foundation,
we develop partnerships withconservation organizations and fundenvironmental projects that protect
biodiversity and minimize the effects ofclimate change. We strive to support
environmental projects, such as thepreservation of sensitive forest areas,through enhanced management
techniques, including reduced impact
logging practices.
In 2021, we added biodiversity criteria
to our due diligence process for any
new build site that is being consideredor any newly acquired site. We wanted
to ensure that any addition to ourfacilities were thoughtfully assessedto understand the comprehensive
potential impacts to the environment
and the effects on biodiversity insurrounding areas and communities.

Our annual site biodiversity assessment
is reviewed each year through careful
controls at each of our locations.
Regardless of prior years' results, welook at every site each year as if itwere being assessed for the first time.
In 2022, this attention to detail during
our due diligence processes revealed
a site that had not been documented
previously had potential biodiversity risks
identified, which had not been identified
previously. For industrial sites, the review
of environmental risks includes sensitive
habitats, such as wetlands, and thepotential presence of protected species.
We conduct formal environmental
impact assessments as required by
local regulations. This is particularly
important for new business activities
around the world, due to the continuingchanges to our real estate portfolio.
We recognize the UNESCO “No-Go”
commitment for Natural World Heritage
sites as an important program for theprotection of unique and valuable
locations.
We are concerned about the potential
effects that industrial operations can

TOC | Letters | By the Numbers | About Baker Hughes | Sustainability | People | Planet | Principles | AppendicesProtecting air quality
We are committed to managing our air emissionsaligned to industry best practices and regulatory
standards. Through robust environmental
practices, we aim to minimize routine air emissions
and prevent emergency releases.

have on protected and ecologicallysensitive sites. In 2022, we continued
our methods of engaging internal
stakeholders to complete our in-depth
review of our sites. We identified 17 sites
with operations that are in or adjacent
to a protected area or an area of highbiodiversity value outside a protected
area. This includes locations in Mexico,Angola, Australia, France, Germany, theUnited States, and the United Kingdom.
We publicly disclose the presence ofInternational Union for Conservationof Nature (IUCN) Red List species on or
adjacent to our Company locations.
Based on our review, we are reporting
392 species on the IUCN Red List whichhave habitats in areas that may bepotentially affected by our operations.
This is a significant increase from our2021 reported species of 201. The majority(64%) of the species reported this year
are classified as Least Concern (251).
The increase in the number of species
reported is due to the addition of sites in
2022 and the increase in species countfor areas in Alaska.

We identify, assess, mitigate, and control potential
sources of air emissions from processes andoperations, including both stationary and mobile
sources. Where needed, we install emissioncontrol devices, such as scrubbers, dust collection
systems, and paint booths, to protect air quality
and meet regulatory requirements.
Across our business, employees have worked tominimize the use of chemicals that may posea threat to the environment. For example, ourenvironmental procedures prohibit the use ofchlorinated hydrocarbon-based solvents or ozone
depleting chemicals. We undertake an annualcomprehensive survey across our operations
to help us avoid the use of ozone depleting
substances. Our survey results for 2022 did not
identify any use of these materials, excluding
refrigerants used in air conditioning systems.

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Baker Hughes

77Reduce spills and reportthem transparently
We are committed to reducing spill volumes tominimize potential harm to the communities we
operate in and the environment. Supported by ourinternal spill prevention and response policy, we are
striving to reach our strategic outcome to reducethe volume of spills at our sites.
This year, spill reduction was identified as a
focal area for improvement in our operations
after completing internal assessments. Our spills
strategy was developed as a framework to drive
progress towards spill reduction and accountability.

Preventing spills
We strongly believe in being proactive to avoid
spills through periodic inspection and routine
maintenance. We have robust internal standards
and processes to identify any risks of spills andhave established control measures, such as
including secondary containment and otherengineering controls.
Sites are expected to conduct and document
periodic inspections to identify spill risk factors
as outlined in the updated spill prevention andresponse procedure. Timely corrective actions or
improvements must be implemented and tracked
in our system of record.

Our core control measures to address potential spill
risks include:• Ensuring container condition, compatibility, and proper
handling procedures• Maintaining equipment, hoses, valves, and vehicles toprevent leaks• Securing containers adequately for safe transport• Testing control equipment such as high-level alarms• Conducting tank integrity testing in accordance withregulatory requirements• Completing routine site inspections• Following proper procedures for liquid transfer activities• Affirming adequate secondary containment for liquidstorage areas• Conducting spill drills to increase effectiveness of
response capability

When spills do occur, we ensure effective response procedures arefollowed for immediate mitigation of environmental affects and spills
are promptly reported, as required. Investigating spill incidents is
integral to our environmental management system, so that we canimplement corrective actions to prevent recurrence.

We inspected98%

of our tanks as a preventative
measure to identify any
potential risks of spills.

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Baker Hughes

TOC | Letters | By the Numbers | About Baker Hughes | Sustainability | People | Planet | Principles | AppendicesDavid Bianchi | Gas Service Technical Training Academy Director
Xiluva Mondlane | Gas Service Field Service Engineer
Industrial & Energy Technology

Reporting spills
To foster and drive a preventative
approach to spills, all of our global sites
are required to report every spill andcategorize accurately, regardless of thevolume.
In 2022, we continued to focus on
increasing the rigor of our spills
reporting which resulted in an increasein the number of spills reported
compared to 2021. The quantity of
spills reported increased; however, oursignificant spill volume — as defined by
GRI standard - decreased by 51%.
We recognize that although oursignificant spills volume decreased,
there is still opportunity to improve inthis area. In 2022, we saw increased
spill volume in the categories of oil,fuel, and chemical spills. The increasein these categories was the result of asmall number of high volume spills. For
example, a singular spill caused by aprocess failure contributed 65% of our
total oil spill volume. All significant spill
occurrences go through a stringent
root cause analysis and corrective
action procedure that identifies pointsof failure in processes which led tothe spill. Detailed investigations are
required immediately following a spillthat document contributing factors andways to prevent future spills.

Managing chemicals
We know that all spills regardless ofvolume can have an impact to ourenvironment. That is why we havecreated a dedicated strategic outcome
to reduce spill volume across our sites.
This will require us to reflect inward on
our internal procedures, processes, andculture as we work to minimize points offailure that could lead to spills. We willcontinue to diligently focus on processcontrol in operations, conduct effective
field training, investigate root causes,
execute corrective action plans, andimprove preventative maintenance on
our equipment and chemical storage.

Table 5-12: Spill volume (barrels)
2019 2020 2021 2022
Significant
spills1,598 738

1,693 827

Oil spills

214

28

6

37

Fuel spills

3

<1

2

3

Waste spills

<1

<1

1

1

Chemicalspills

350

155

130

378

Four facilities in our OFSE segment
were recognized in 2022 by theSociety of Chemical Manufacturers& Affiliates (SOCMA) for excellencein environmental, health and safety
initiatives. The Baker Hughes Rayne
Blend Plant in Rayne, Louisiana
was honored with two 2022 Silver
Performance Improvement Awards inthe categories of Product Stewardshipand Resource Management and Waste
Minimization. Also, the Bayport facility
in Pasadena, Texas, and the chemical
facilities in Bakersfield, California, andKilgore, Texas, were each given a 2022
Silver Award in Resource Management
and Waste Minimization.
Baker Hughes is a longtime participant
in ChemStewards®, a rigorous
program to foster and improve upona culture of facility safety, productstewardship, environmental safeguards,
risk reduction, and stakeholder
engagement. Now in its 17th year, theannual Performance Improvement
Awards recognize companies
demonstrating best practices in theseareas.

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Baker Hughes

79Principles
81 Performance snapshot
82 Our Principles strategy
84 Champion compliance and integrity
88 Ensure sustainable governance
91 Strive for sustainable, diverse, and inclusive supply chains
92 Uphold the highest health, safety, and environment standards

Jose Ramirez | Lead Engineer, Mechanical Component, OFSE

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Baker Hughes

TOC | Letters | By the Numbers | About Baker Hughes | Sustainability | People | Planet | Principles | AppendicesThis dashboard represents our progress on key performance indicators over time. We continue to improve our reporting by establishing quantitative goals and performance metrics
that contribute to the UN Sustainable Development Goals (SDG).

Principles
performance snapshot
SUSTAINABILITY PRIORITY

Ethics and governanceSupply chain

Health and safety

KEY PERFORMANCE INDICATORS

2020

2021

2022

# of employees who completed the annual Code of Conduct training,
including training on ethics, compliance, and anti-corruption

53,37050,16153,846% of employees who completed the annual Codeof Conduct training

98

92

97

% of governance body members who have received training on anti-corruption*26

-

90

99

% of operations assessed for risks related to corruption*

-

100

100

% of enterprise security personnel, including full-time security personnel andembedded contractors, trained in human rights policies or procedures*

-

100

100

# of identified leaks, thefts, or losses of customer data

-

-

-

# of substantiated complaints received concerning breaches of customer privacy

-

-

-

# of certified Supplier Social Responsibility Program (SSRP) auditors27

152

93

84

# of SSRP audits

434

545

408

# of SSRP audit red flag findings

965

1,696

1,343

% of audits that were re-audits

74

82

81

% of audit red flag findings closed within 90 days28

83

95

95

# of suppliers rejected due to SSRP policy

21

52

23

% of local spend

82

77

81

Local spend (billion USD)

$7B

$7.7B

$13B

# of HSE leadership engagements

68,886

66,71664,550# of HSE observations

1,038,071

1,051,723

1,071,845

Average hours HSE trainings - employees**

-

-

5.3

Average hours HSE trainings - contractors**

-

-

0.64

Perfect HSE Days

200

204

217

# of near misses

1,299

1,075

1,017

Total recordable incident rate

0.23

0.28

0.22

Days away from work rate

0.11

0.13

0.11

# of days away from work cases

104

97

86

# of employee work-related fatalities

-

-

1

# of contractor work-related fatalities

-

-

-

# of total recordable illness

69

37

5

# of musculoskeletal disorders**

-

-

2

# of diseases caused by physical agents**

-

-

3

# of vehicle incidents**

-

-

213

29

30

*New 2021 metric, **New 2022 metric
26 Governance body members include 116 Senior Executive Band and above employees, which include the most senior-level managers and individual contributors, such as Vice
Presidents and above.
27 The 2022 value is not comparable to historic data due to change in definition of “auditor.”
28 A red-flag finding is a warning sign. Once found, new suppliers should not be issued an order unless further review indicates that there is no issue or until significant progress has
been made on the corrective action.
29 Total recordable incident rate (TRIR) is calculated using OSHA standard.
30 Work-related ill health metrics are reported in accordance with the GRI standards, which are based on the OSHA guidelines. Occupational cancer, skin injuries, respiratory disease,disease caused by chemical agents, biological agents and infectious or parasitic diseases, mental and behavioral diseases, and other diseases accounted for 0% of illness in
2022.

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Baker Hughes81

Our Principles strategy
OUR GOALS

1. Drive a culture of
1. Drivea culture oftransparency
andtransparency
andtheintegrity - doing
integrity- doingtheright thing
beyondright
thing
beyondcompliance

Principles

compliance

HOW WE WILL DELIVER SUCCESS• Champion complianceand ethics• Ensure sustainable
governance

HOW WE WILL MEASURE SUCCESS• 100% of targeted personnel trained annually onhuman rights policies and procedures• Specialized human rights training completed for >80%
Supplier Social Responsibility Program (SSRP) auditorsand sourcing by 2025
• Process to record, track and monitor human rights
grievances in place Q1 2024
• Total Recordable Incident Rate <0.3
• All Perfect HSE Days

2. Take energy forward
2. Take energy forward
responsibly withresponsibly withintegrity andintegrity andtransparencytransparency• Uphold the highest health,safety, and environment
standards• Strive for principled, diverse,
and inclusive supply chains• Active suppliers assessed for environmental criteria
every three years• 90% of SSRP audit red-flag findings closed within 90
days• 90% completion rate for SSRP planned audits• 80% of suppliers agreeing to BH Integrity Guide by 2030

0.22

Total recordable
incident rate

100%

Enterprise security
personnel trainedon human rights

82

Baker Hughes

95%

SSRP red flag findings
closed within 90 days

97%

Building on the commitments outlined
in our 2021 Corporate Responsibility
report, our Principles mission has two
key goals and four objectives.
Our governance initiatives, programs,
and policies drive a culture oftransparency and integrity, ensuringthat we do the right thing, beyond
compliance. We aim to take energy
forward responsibly - with integrity andtransparency.

Employees whocompleted the annual
Code of Conduct training

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Giuseppe Sammarco | Senior Construction Manager, GTE MFG Avenza Plant, Industrial & Energy Technology

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Baker Hughes

83Championcomplianceand integrity
Ethics and compliance
Our ethics and compliance programis designed to prevent, detect, andrespond to any potential violations oflaw, our Code of Conduct, and other
Company policies and procedures. This
company-wide commitment to integrity
is fundamental to running a sound,successful, and sustainable business.
Our Code of Conduct, approved by our
Board of Directors, governs our behavior.
Our compliance team, led by our Chief
Compliance Officer, is tasked withthe operationalization of the Code of
Conduct.
Each year, employees, including seniorleaders, are required to complete online
training on our Code of Conduct, which
includes training segments on policies
and procedures for human rights, anticorruption, data privacy, cybersecurity,
conflict of interest, trade compliance,and other compliance topics. In 2022,
99% of governance body members31
and 97% of the entire employee
population completed the annual
Code of Conduct training. As part ofour objective to champion complianceand ethics, each year we aim to reach
100% of our employee population,
including governance body members,
completing the code of conduct training.
While we did not reach that value in
2022, we achieved a 5% year-overyear improvement. In addition to theannual training, employees engage

with monthly awareness campaigns on
topics including human rights, modern
slavery, and anti-discrimination, andare encouraged to integrate integrity
moments, quick reminders of highimportance compliance topics, policies,
and procedures into internal andexternal meetings.

Open reporting and consultation
We believe that a culture in which
all employees maintain the highest
levels of integrity, conduct businessin a professional manner, treat one
another with dignity and respect, andsupport open communication without
repercussions creates a better andmore productive work environment.
Employees and other stakeholders
have several ways to raise complianceconcerns, and they are encouraged
to report any ethics or compliancematters. Our Fair Employment Practice
policy prohibits retaliation against an
employee for raising a concern about
a potential violation of policy or law.
Reporting mechanisms include raisinga concern with their direct manager, a
global network of Ombuds, a dedicatedwebsite where employees can reportconcerns and anonymize if desired, anda worldwide 24-hour helpline operated
by a third party and available in 150
languages. All concerns raised areinvestigated and treated confidentially.
We take all allegations regarding our
Code of Conduct, the law, and various
policies seriously, and investigate
allegations with a rigorous, anddisciplined investigations process thatdrives consistency in process and in
discipline.

How to report a concern+1 800 288 8475 (U.S. Toll Free)+1 713 626 0521 (Collect)
BakerHughes.Ombuds@
bakerhughes.com
17021 Aldine Westfield Road,
Houston, Texas, 77073, USA

Anti-bribery and anti-corruption
Our Code of Conduct includes asummary of our global anti-bribery andcorruption policy, which prohibits bribery
and facilitating payments in all businessdealings, including with governments,
employees of state-owned companies,
and private sector entities. As part ofour compliance program, to prevent
bribery, we have internal controls, suchas online and live trainings in highrisk countries, and policies addressing
compliance-sensitive activities, such as
travel, expenses, charitable donations,and transactions with third parties.
For our Enterprise Risk Management(ERM) process, each year, leaders fromeach business segment and functions
hold workshops to discuss and assess
compliance risks and deploy risk
mitigation plans. In 2022, all four productcompanies were assessed for risks
related to compliance, including risks
from corruption. Relevant risks identified
as part of the risk assessment processinclude bribery and corruption risks
within our value chain.

31 Governance body members include 116 Senior Executive Band and above employees, which include the most senior-level managers and individual contributors, such as Vice
Presidents and above.

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Baker Hughes

TOC | Letters | By the Numbers | About Baker Hughes | Sustainability | People | Planet | Principles | AppendicesHuman rights
Human rights are fundamental rights
and freedoms to which every individual
is equally and inalienably entitled. We
recognize human rights as a universal
obligation to uphold, and a core
principle to our business practices. Asa signatory of the UN Global Compact,
we are committed to advancing the Ten
Principles and the SDGs.
Our Human Rights Policy applies to all
employees, business partners, vendors,
suppliers, and contractors. This policy is
informed by the UN Guiding Principles
on Business and Human Rights and ourCode of Conduct. It is supported by aframework of policies and guidelines,
setting forth the expectations that
we do what is right and safe andconsider the well-being of our people,
suppliers, customers, communities, andenvironment.
We integrate onboarding, training,
management, due diligence, andreporting systems to identify, prevent,mitigate, and take prompt corrective
action to address identified complianceissues. Due diligence tools we rely on
include, but are not limited to, legal
and regulatory compliance reviews
and supplier audits. When adverse
human rights impacts or violations
are identified relating to our businessactivities or from linkages to ouroperations, we are committed totaking timely and transparent action
to remediate in a fair and equitablemanner. Grievance mechanisms areavailable for all individuals across ourvalue chain. Confidentiality is respected,
and individuals may choose to remain
anonymous.

Filippo Camporeale | Shop operator, Industrial & Energy Technology

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Baker Hughes

85

Ping Duan | Engineering Manager, OFSE and Jennifer Budnik | Product Marketing Specialist, OFSE

Our human rights pledge
We commit to responsible businesspractices, high standards of integrityand ethical conduct, compliance withall applicable laws, and respect for
the rights and dignity of all people. We
respect human rights as expressed in
the International Bill of Human Rights
and the fundamental conventions of
the International Labour Organization
Declaration on Fundamental Principles
and Rights at Work. If there is a conflict
between internationally recognizedhuman rights and national laws, wewill follow processes that seek ways tohonor the principles of international
human rights. Human rights are soessential to our work that they areincorporated into our sustainability
strategy, underpinning our commitment
to integrity and ethical conduct. We
prohibit slavery, servitude, forced andcompulsory labor, human trafficking,and child labor — collectively “modern
slavery” (see our Modern Slavery Act
Statement for more information). We
prohibit discrimination or harassment
against any employee or applicant
based on race, color, religion, national or
ethnic origin, sex (including pregnancy),

86

Baker Hughes

sexual orientation, gender identity or
expression, age, disability, veteranstatus, or other characteristics protectedby law (see our Fair Employment
Practices Statement available on every
vacancy announcement).
We seek to provide a work environment
free from all unlawful forms ofharassment and bullying, including
sexual harassment, and furthering
workplace health and safety.
We respect the freedom of association
and right to collective bargaining.
We respect individual privacy rights
and commit to processing, collecting,handling, and protecting personal
information responsibly, in compliancewith applicable privacy and information
security laws, our Data Privacy Policy,
and related policies, guidelines, andnotices.
We respect the human rights of local
communities, including vulnerable,
marginalized, and indigenous
groups. Our businesses engage
with communities, customers,
local governments, and other key
stakeholders to integrate local

considerations into operational plans. In
instances where local communities may
be adversely impacted by our activities,
our businesses are supported byfunctional teams and processes which
work to manage and mitigate potential
impacts on public well-being.

Data privacy andcybersecurity
We take cybersecurity and data privacy
seriously. We respect rights to dataprotection and privacy. In 2022, we had
zero identified leaks, thefts, or losses ofcustomer data and zero substantiatedcomplaints received concerning
breaches of customer privacy.
We maintain cybersecurity and digitaltrust compliance programs aimed at
protecting our systems and information,complying with relevant laws andregulations, and maintaining the highest
level of trust. Our programs are focusedon building digital trust through soundoversight of cybersecurity and data
privacy protections and the responsible
use of data and technology.

TOC | Letters | By the Numbers | About Baker Hughes | Sustainability | People | Planet | Principles | AppendicesWe takecybersecurity
and data privacy
seriously. We
respect rights todata protection
and privacy.
We protect our digital systems and data
through a comprehensive cybersecurity
management program, and we operate
an integrated Cyber Fusion Center tocoordinate resources, reduce incident
response time, and shift toward a
proactive cyber-defense model.
Oversight responsibilities for our
cybersecurity and digital trust
compliance programs and risks lie
with the Audit Committee of our
Board of Directors. To emphasize theBoard’s commitment to cybersecurity,
Director Rice recently obtained the
NACD CERT Certificate in Cybers-Risk
Oversight. The Board recognizes the
rapidly evolving nature of cyber threats
and is committed to the prevention,
timely detection, and mitigation of
the effects of any such incidents on
the Company and our stakeholders.
Our Audit Committee receives reportson the Company’s cybersecurity
program and developments from ourChief Information Officer and Chief
Information Security Officer at eachof our regular Board meetings. These
reports include analyses of recent
cybersecurity threats and incidents
across the industry, review of our own

security controls, assessments andprogram maturity, and risk mitigation
status.
Our executive leadership is actively
engaged in the oversight of ourcybersecurity and digital trust
compliance programs. The executive
leadership-level committees provide
oversight and strategic direction
for cybersecurity and digital trust
compliance programs and our risk
mitigation efforts.

Incident reporting and management
Employees and stakeholders canreport cybersecurity threats, data
privacy incidents, or other concerns
through external and internal reporting
channels. We have established policies
and procedures for responding tocybersecurity and privacy incidents,
including protocols for escalating to
executive leadership, engaging external
stakeholders, and reporting incidents.

Cybersecurity
We leverage the United States National
Institute of Standards and Technology(NIST) cybersecurity framework todrive strategic direction and maturity
improvement. We engage third-party
security experts for risk assessments
and program enhancements, including
ransomware vulnerability assessments,
cybersecurity tabletop exercises andinternal phishing awareness campaigns.
We also maintain information security
risk insurance coverage. The Company
has not experienced a material
cybersecurity breach to date.

Privacy and Digital Trust Compliance
Baker Hughes’ Global Digital Trust
Compliance Program seeks to ensurethat business and personal information
is protected and handled in accordancewith applicable law, our policies,
applicable contractual obligations, andstandards for privacy, cybersecurity, andinformation governance. The mandate
and goal of our Digital Trust Compliance
Program is to mitigate risks with atrust-centered purpose and to drive
accountability for compliance businessobligations and responsible use of data
and technology through our Company’svalues, our Code of Conduct, andour integrity programs. The program
includes policies and procedures,
enterprise risk assessment, privacy
impact assessments, incident response
and management, regular audits,mandatory cybersecurity and privacy
training, and ongoing awarenesscampaigns for our employees tounderstand our policies and compliancerequirements relevant to their functions.

Product security
Our product security approach spans
three critical cornerstones: people,
process, and technology. It is based oninternational standards, regulations, andindustry best practices, such as:• ISO 27001 - Information technology —Security techniques• IEC-62443 suite — Industrial Network
and System Security
This holistic approach seeks to ensurethat organizational and technicalsecurity measures are integrated into
the product development lifecycle at allstages, from requirements specification,
to design, implementation, operation,and maintenance. Methods and tools
commonly accepted by both thesecurity and industry communities areused to ship products free of known
vulnerabilities.

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Baker Hughes

87Ensure sustainable
governanceCorporate governanceOur framework for corporate
governance is set forth in our
Governance Principles, committee
charters, and our Fifth Amended andRestated Bylaws, which can be found on
our website.
Our Governance Principles provide
guidelines for Board matters, including
the leadership structure of the Board.
Written charters for the Board’s Audit
Committee, Human Capital andCompensation Committee, Governanceand Corporate Responsibility
Committee, and Finance Committee
describe the roles and responsibilitiesof each committee. Additionally, ourCode of Conduct applies to all officers,
directors, and employees.

Our Board of Directors
Operating responsibly and withaccountability to serve the bestinterests of our stakeholders requires
sound corporate governance—acommitment that begins with our Boardof Directors. Our Board recognizes that
operating responsibly — minimizing theenvironmental impact of our operations,fostering employee engagement, andrespecting human rights by creating
an environment of respect, integrity,and fairness for our employees andcustomers wherever we do business —is fundamental to the long-term
success of our Company.
Our Board exhibits a broad mix of skills,
experience, diversity, and perspectives,
collectively demonstrating leadershipand a substantive understanding of
our strategy as an energy technology
Company. Our directors’ sustainability
expertise includes direct experience
with human resources and talentdevelopment, legal and corporate
governance issues, environmental andsafety regulations, and risk oversight88

Baker Hughes

including cybersecurity, finance, andoperations. Our Governance andCorporate Responsibility Committee,
which recommends director candidates
for annual election, evaluates thecomposition of the Board annually andidentifies desired skills, experience, andcapabilities. The committee strives tomaintain a Board with varied expertiseand perspective and one that reflects
diversity, including but not limited togender, ethnicity, background, andexperience.
As part of our sustainability strategy,
we plan to have our Board and otherexecutive staff complete annual ESGrelated trainings to continue to develop
knowledge in sustainability. At present,
four of our directors, including ourCEO, have skills and experience in ESG.
Additional information can be found inour 2023 proxy filing.

Contacting the Board
To provide our shareholders and otherinterested parties with a direct and open
line of communication to our Board,shareholders may communicate withany member of the Board, including
our independent lead director, thechair of any committee, or with thenon-management directors of Baker
Hughes as a group by sending such
written communication to our Corporate
Secretary, c/o Baker Hughes Company,
17021 Aldine Westfield Road, Houston,
Texas, 77073, USA or by email atboardofdirectors@bakerhughes.com.

Governance ofsustainability
The Board Governance and Corporate
Responsibility Committee has oversight
responsibility for our environmental
matters including monitoring oursustainability strategy and initiatives andmanagement of sustainability-relatedrisks. The Governance and Corporate
Responsibility Committee receives
regular reports from management on
the Company’s environmental, healthand safety, corporate responsibility,
and sustainability activities and risks,
including risks related to climate change,
among others. The Governance andCorporate Responsibility Committee also
oversees the publication of this report.
The primary responsibility fordeveloping, managing, and executing
our sustainability strategy rests with
our management team. Our Chief
Sustainability Officer (CSO) oversees
our sustainability strategy and chairs
our Sustainability Steering Team. The
Steering team works with subject
matter working teams to manage
our sustainability priorities, set goals,
monitor our progress, and coordinate
our sustainability reporting. We also
have a formalized sustainability
management structure with designatedexecutive sponsors, including the Chief
Legal Officer, Chief Human Resources
Officer, and the Senior Vice President ofEnterprise Operational Excellence thatreport to the Board Chair/CEO.
On a working level, sustainability isdriven by a unified approach, across allfunctions and both segments, working
with our People, Planet, and Principles
teams to operationalize sustainability.
The actions of these teams aredescribed within this report.
So that everyone at Baker Hughes is
responsible for sustainability, we plan toalign annual executive compensation
to ESG outcomes by 2025. We havea strong stated and demonstrated
commitment to reduce scope 1, 2 and 3
carbon emissions over time, alongside
many additional ESG-related objectives.
The ESG-related metrics currently
included in our short-term-incentive
plan, as discussed and approved by
the Human Capital & Compensation
Committee each year and socializedwith many of our investors duringbi-annual engagement sessions,currently include HSE-related goals, DEI
representation goals across multiple
employee groups, and scope 1 and 2
emissions reduction goals relative to

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Board and committee oversight of environmental, social, and governance matters
Our Board recognizes that operating responsibly – minimizing the environmental impact of our operations,fostering employee engagement, and respecting human rights by creating an environment of respect, integrity,and fairness for our employees and customers wherever we do business – is fundamental to the long-term
success of our Company. The Board and committees oversee significant ESG topics as follows:

Figure 6-1: Board of Directors oversight of environmental, social and governance matters
AUDIT
COMMITTEEFINANCECOMMITTEE

GOVERNANCE & CORPORATERESPONSIBILITY COMMITTEEHUMAN CAPITAL AND
COMPENS ATION COMMITTEE• ESG disclosures in
sec filings• ESG investments• Corporate responsibility
report• Diversity, equity,and inclusion• ESG reporting standards/
metrics• Compensation tied
to ESG• HSE program• Competitive benefits
and compensation• Human rights concerns• Investor relations• Cybersecurity• Supplier audit program• Human trafficking• Talent retention• ESG policy/regulatory
updates• Succession planning• Charitable giving• Training anddevelopment• Political contributions• Board composition andgovernanceour 2019 base year. Also included isdevelopment of the scope 3 emissions
reduction roadmap for our internal
scope 3 emissions reduction goal.
Additional information can be found inour 2023 proxy filing.

Buffering sustainability
risks through our Enterprise
Risk Management process
We identify risks to our strategic andbusiness objectives utilizing an effective
Enterprise Risk Management (ERM)
process — a risk-based management
and continuous monitoring program thatis aligned to the business cycle, leads tomore informed decision-making, andbuilds resilience across the organization.
Our ERM process includes an annual risk
review with representatives of businesssegments and various functions toproactively identify and monitor key risks
and opportunities that have significant
potential to affect our business or
strategy.
Every identified risk is rated according
to probability, impact (including
environmental, social, and governanceimpact), and preparedness. Those thatare identified as severe require enhanced
monitoring and improvement efforts.
Identified risks are then reviewed withexecutive leadership for validation
and alignment. Executive sponsors
are assigned to the top risks and key
risk indicators, and mitigation actions
are established. The ERM Steering
Committee and the Board of Directors
have oversight of the ERM program andcan recommend further analysis or, insome cases, specific improvements tostrengthen the Company’s safeguards.

• Talent planning/culture
for energy transition

The ERM executive sponsors review
response actions and key risk indicatorswith the risk owners, and quarterly
updates are presented to the Executive
Leadership Team. ERM risks are reviewed
during Board of Directors and various
Board committee meetings throughout
the year.
Given the interconnectedness of key
risks, the ERM team works closely withrisk champions across various levels of
the organization to introduce, support,
and promulgate risk management
behaviors and to ensure an integrated
approach to risk management.
A summary of our Company’s material
risks is presented in our 2022 Form 10-K
filing and quarterly reports on Form 10-Q.

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Baker Hughes89We are committed to ensuring compliance with tax
requirements worldwide and to maintaining an open andconstructive relationship with tax authorities. We havezero-tolerance for tax evasion and maintains procedures toprevent the facilitation of tax evasion.
Tax
We recognize that, among our duties toour shareholders, we have an obligation
to pay no more tax than is due underlaws and regulations of countries inwhich we and our subsidiaries operate,in accordance with rules set bygovernments.
In 2022, we reported net tax cash
payments to governments totaling $498
million. Our tax payments are disclosed
as part of our audited financial
statements. Our United Kingdom tax
policy is publicly available and can befound on our website.
The Vice President of Tax is responsible
for, and implements, our tax strategy,reporting directly to the Chief Financial
Officer. The VP of Tax is supported bya team of in-house tax professionals
based in primary operational locations.
We understand that sometimes there
is more than one tax outcome incommercially motivated transactions.
However, we do not willfully engage intax schemes nor structure transactions
in such a way that our tax teamconsiders the transactions contrary to
the clear intentions of the tax legislation
concerned.
Tax incentives and exemptions
are sometimes implemented bygovernments and fiscal authorities
in order to support investment,
employment, and economic
development. Where these exist andare applicable to our business, we seek
to apply them in the manner intended,taking external professional advice
where necessary.

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Baker Hughes

We monitor changes in tax laws andtax practices to manage tax risk. This isa key area of focus of our in-house tax
professionals with regular training fromboth in-house subject matter experts
and external advisors, to train staff on
the skills to identify and address tax risks.
Knowledge is shared among the tax
group with the discussion of relevant tax
technical information.
Our approach to cooperation andtransparency is beneficial to ourstakeholders and investors, as well as to
the governments in countries in which
we do business. Transparency initiatives,
such as Advanced Pricing Agreements(APAs), promote several advantages
to governments, including access tobusiness information and strategies aswell as efficient staffing of audit resources.
We have several APAs in process with key
jurisdiction where we operate.
We strive to achieve low-risk
designations which allows us to focus
the resources of our tax organization
on material transactions and ensure
effective and efficient ongoing tax
compliance. Pursuant to Generally
Accepted Accounting Principles (GAAP),
companies typically are required toestablish relevant tax reserves to coverinstances where tax positions are
uncertain, subject to audit, or under
dispute. We expect our ongoing efforts
to engage in broader transparency with
tax administrations, to result in lower tax
reserves over time.
It is our policy to be compliant,transparent, and proactive ininteractions with tax authorities. Where

appropriate, we will engage with tax
authorities to assist with the shaping of
future legislation and tax policy. We will
make fair and accurate disclosures incorrespondence and returns and respondto queries and information requests in atimely manner.
Where disputes arise with tax authorities, inareas of doubt or where legal interpretations
differ, we endeavor to address the matter
promptly, provide support for the position
taken and resolve it in a responsible, open,
and timely manner. Questions or concerns
about issues related to tax can be reported
through our public compliance line atreportconcerns.bakerhughes.com, or bycalling 1-800-288-8475 (U.S. only) or 1-713626-0521 (International) to anonymously
speak with a third-party agent.
The tax department plays a critical role indelivering value for the organization in four
key areas of our sustainable development
strategies: funding initiatives throughgrants, credits, and discretionary incentives;
understanding how to unlock value inindirect tax, property tax, and excise tax;
identifying value chain opportunities; andevaluating mergers and acquisitions througha sustainable business value lens.
Tax can provide guidance on how toclaim and utilize grants, credits, anddiscretionary incentives. The U.S. Inflation
Reduction Act’s energy transition-related
provisions highlight the tax function’s keyrole in advancing decarbonization goals
and related investments in our sustainable
development strategies.

TOC | Letters | By the Numbers | About Baker Hughes | Sustainability | People | Planet | Principles | AppendicesIzekor Nosa Bill | Shop Operator, Industrial & Energy Technology

Strive for sustainable,
diverse, and inclusive
supply chainsWe ensure that the suppliers we workwith adhere to our high standards. Asa major equipment manufacturer andservice provider, we use our influence
to raise the standards of our industry
through our policies and programs.
Our Supplier Integrity Guide governs
all aspects of our relationships with
suppliers, contractors, consortium
partners, and consultants. By 2050,
we aim to have 80% of our suppliers
agreeing to our Integrity Guide. Oursustainable supply-chain framework
consists of four core pillars, the detailsof which can be found in our 2021
Corporate Responsibility report.

Our Supplier Social Responsibility Program(SSRP) is designed to prevent, detect, andappropriately respond to any potential
violations of the law or Company
policies. As a part of the SSRP, all new
direct material suppliers are screened
and assessed for social risks. SSRP sets
standards for and monitors complianceof our suppliers’ HSE, ethics, compliance,and human rights performance. Suppliers
that are flagged as “high risk” in these
topics are further audited. We suspend
business relationships with suppliers
immediately in the case of serious laborrelated findings.

of SSRP audit red-flag32 findings closed
within 90 days and a 90% completion
rate for SSRP planned audit, which weachieved in 2022. While we were able
to achieve our goals in 2022, we had
a 10% year-over-year decrease in thenumber of audits due to a change
in the definition of an auditor. We
do not believe that there have beensignificant impacts due to this change
as evidenced by a stable percentage
of audits with 81% in 2022, compared to
82% in 2021.

As part of our sustainability strategy,
by 2025, we will be implementing a
specialized human rights training for
our SSRP auditors and sourcing team.
In addition, we also aim to have a 90%

32 A red-flag finding is a warning sign. Once found, new suppliers should not be issued an order unless further review indicates that there is no issue or until significant progress has
been made on the corrective action.

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Baker Hughes

91

Uphold the highest health,safety, and environment
standards

Our HSE management system

Occupational safety

We take a multi-tiered approach that enables leadershipat various levels (country, business, or product level)to create localized and relevant procedures. Thisapproach allows for more detailed task-level standards
and compliance with applicable obligations, including
regulatory and customer requirements. All employees,
including directly supervised contractors, are covered by
the management system.

We strive to operate safely and responsibly to take careof our people, customers, partners, community, and theenvironment.
Our commitment to health, safety, and environment(HSE) starts at the highest levels of our Company and isembedded throughout all layers of the organization. As
we continue our focus on the health and safety of ouremployees, we strive for everyday to be a Perfect HSE
Day where all employees return from work safely. In 2022,
Baker Hughes achieved improvements in several healthand safety metrics. Despite these successes in reducing
overall health and safety incidents, we are saddened toreport the loss of one of our colleagues who was fatally
injured while conducting field activities in Ecuador.
We encourage and empower all employees to takean active role in “owning” HSE by stopping work whenconditions are unsafe and reporting observations,near misses, and stop-work events through openreporting channels. As part of our sustainability strategy
and our objective to uphold high health, safety, andenvironmental standards, we also have two objectives
for HSE: to maintain our TRIR below 0.3 and to have 365
Perfect HSE Days. In 2022, we achieved our goal with a
TRIR of 0.22.
Our teams are required to complete recurring training.
We offer more than 230 unique HSE courses including
foundational training required for all employees,
workplace and job specific training, and humanperformance leadership training for managers. Our
ambition is to make every day a Perfect HSE Day—one
without serious injuries, accidents, or harm to theenvironment. In 2022, we achieved 217 Perfect HSE Days,
up 6% from 2021., but short of our target of 365 Perfect
HSE Days.

Our HSE Management System is an enterprise-wide
framework that drives continuous improvement in
performance and compliance across our operations.

The management system is formally reviewed annually
to identify any changes or improvements from relevant
stakeholder groups, such as regulators, industry, public
and business operations. Identified improvements are
adopted and revisions are published and communicatedto the organization. Employees are encouraged to provide
feedback, request revisions or clarification at any time.
If changes are made to documents, we follow a revisionpublication process and communicate the changes to
employees.
Our management system and respective policies andprocedures conform to the recognized International
Organization for Standardization (ISO) certifications,
noted below. Depending on the business needs, for key
operations, we hold individual or multi-site certifications
to these standards33. At sites where a third-party
certificate is not applicable, the management system atthose locations meet or exceed the requirements of the
ISO standard(s) since all relevant internal policies andprocedures are aligned to ISO standards.

33 Business needs may include a customer’s’ contractual requirements.

92

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TOC | Letters | By the Numbers | About Baker Hughes | Sustainability | People | Planet | Principles | Appendices87

sites were certified to ISO 14001,
the international standard forenvironmental management
systems

61

sites were certified to ISO 45001,
the international standards foroccupational health and safety
management systems

245

sites were certified to ISO 9001,
the international standard for
quality management systems

In addition, our internal
standards are aligned to ISO
50001, the international standard
for energy management
systems in support of ourenergy-efficiency goals. One
site is also certified to the ISO
50001 standard.
Independent reviews
are conducted through themulti-site certification process
and external audits.

Izekor Nosa Bill | Shop Operator, Industrial & Energy Technology

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Baker Hughes93Left to Right: Idvard Jose Pires Junior | Lead Services Specialist, Training, WHEC
Marcel Geraud | Technical Training Manager, Integrated Solutions, WHEC
Adriana Sanchez Nunez De Caceres | Technical Training Manager, Drill Bits, WHEC

Our approach to health and safety
Health, safety, and the environment(HSE) principles are embedded ineverything we do and how we work —from protecting the safety of our teams,
operations, and the environment, tomaintaining compliance with external
parties, customers, and regulatory
requirements.
Our commitment to HSE starts at thehighest levels of our Company and isembedded throughout all layers of theorganization. Our Senior Vice Presidentof Enterprise Operations Excellence,in partnership with our HSE Leader,
is responsible for our HSE systems
and standards. We had a small, 3%
decline in leadership engagementsfrom 2021. Leadership engagements
are down slightly over the prior year.

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Baker Hughes

To improve performance in this area,
we have implemented additional
efforts for leaders, including providing
targeted messaging to engagements
and reference materials. We restated
our expectations with leaders oncompliance with engagements. We
also implemented an expansion of
our tool to enable a wider selection ofengagement categories and introduceda mobile application to efficiently record
engagements in real-time while at a
job site or facility. Occupational healthrisk identification and mitigation are
managed through our global healthteam. Management leads in thecommunication and implementationof health-related activities andcommunicates and implements HSE
priorities and metrics into strategicplanning, operations, and business

reviews. HSE employee engagements
are conducted by leadership regularly
and reported monthly in our data
management system. All employees
and contractors have a responsibility
and are empowered to actively own
HSE to ensure the health and safetyof everyone around them. In 2022, we
logged 1,071,845 HSE observations, amodest 2% increase in observations
since last year.
Health and safety is at the core of ourculture as we are committed to doing
the right thing to protect our employees,
customers, the communities where welive and work, and the environment.
We use a risk-based approach todetermine hazards that could lead toadverse health, safety, environment,
and quality (HSEQ) impacts or cause

TOC | Letters | By the Numbers | About Baker Hughes | Sustainability | People | Planet | Principles | Appendicesprocesses to deviate from planned
results. The risk management processincludes risk identification, risk analysis,risk evaluation, and risk mitigation. The
hazards that have been determinedto cause or contribute to cases of ill
health during the reporting period
are associated with exposure to
extreme environmental temperaturesand repetitive motion work activities.
Governance has been updated
to include a work / rest schedule
for extreme heat environments
and educational communications
have been developed to alert theorganization of the hazard and potential
risk control options. The occurrenceof repetitive motion musculoskeletal
disorders is not common for ourwork; however, efforts are underway
to develop an ergonomics training
program for site ergonomics teams
as well as a principle of design forengineers.

Training to foster a safety culture
We have an obligation to ensure
all employees are trained andunderstand our HSE fundamentals. We
have a comprehensive HSE training
curriculum designed for the complex
nature of our operational risk profile,enabling employees to gain technicalawareness on risks and to recognize
hazards. Training needs are assessed
through evaluation of relevant
regulations, applicable laws, and risks
associated with the employee’s job
duties. Training topics include fatigue
management awareness, stop work
awareness, emergency and disaster
preparedness, and slips, trips, and falls.
These trainings are deployed using
our online learning system, and inperson trainings are provided whenrequired. Trainings are provided free ofcharge, during paid working hours. All
employees are assigned required HSEtraining, while contractors are assigned
trainings based on need identified

locally, and two training activities arerecommended to all contingent workers.
Effectiveness of training is evaluatedthrough analysis of incident trends,
audit results, and employee feedback.
In 2022, 231 HSE courses were offeredand employees completed 703,977
trainings. On average, employees
spend approximately 5.3 hours per year
completing HSE training and contractors
spent approximately 0.6 hours.

Taking preventative measures
In addition to training, we integrate
policies, programs, and initiatives
to protect employees from healthand safety risks and hazards andpromote the overall well-being of ouremployees. By strengthening our focus
on learning and improvement, we aim
to minimize human error, mitigate
incidents, and continuously improve
our HSE performance. Throughout
the year, we continued our emphasis
on proactive prevention measures,
human performance, and leadershipengagements to discuss risk.
Local leadership periodically reviews
and assesses related data trends,
communicates feedback to employees,
and reviews and updates operational
procedures as needed. We set clear
targets and regularly track andassess our progress through annual
management reviews, site selfassessments completed based on site
risk criteria, internal audits conducted bytrained employee auditors, and externalannual audits from customers and the
ISO registrar.
Our risk assessment process is inplace to identify, understand, andmitigate impacts through proactive
and preventative programs and control
measures. Risks are assessed from thesite or project level, and includes risks
from transportation, material handling
activities, remote/offshore operations,and other higher-risk activities related
to pressure, lifting and rigging, electrical,
and process safety.
Employees, contractors, or those directly
involved with our activities are expected
to stop work when conditions are unsafe
and report observations, near misses,
and stop-work events to management.
If an individual exercises their “stop work
authority,” activities must be stopped
immediately and may resume once
the issue is addressed. When incidents
do occur, they are tracked in our data
management system, investigations
are conducted, formal incident reviews
are performed, and corrective actions
to prevent recurrence are tracked. In
addition, learnings are disseminatedto targeted employee populations withsimilar operational risks following an
incident.

As we continue our focus on
the health and safety of ouremployees, we strive for everyday
to be a Perfect HSE Day where
all employees return from worksafely. In 2022, we achieved
improvements in several healthand safety metrics, including

15%

improvement in our days awayfrom work case rate.

86%

improvement in our total
recordable illnesses.

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Baker Hughes

95Process Safety Management
Our Process Safety Management(PSM) program is aligned to industry
standards and best practices, aimed
at preventing or mitigating events
that can cause catastrophic safety
or environmental consequences. The
program includes training, global andbusiness-specific procedures, risk
assessments, barrier management
checklists, process safety operations
fundamentals, management of change,
audits, threat response drills, among
other elements.
Process Safety projects are ongoing
within some of our operations. Audits
are conducted globally for performanceassurance, including execution ofa targeted audit strategy covering
specific operational business units.
The audits help ensure adoption andsustainable performance of process
safety risk management across theenterprise. Learnings from incidents areused to focus on reliable execution ofsafety-critical tasks as a key to reducing
risk as low as reasonably practicable.
The Process Safety Operations
Fundamentals were designed asa human-factors tool to educate,reinforce, and continually remind theworkforce of their importance.
Process Safety Events include barrier
impacts and loss of primary containment
events and are included in our leading
and lagging performance indicators.

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Baker Hughes

The emphasis on leading indicators
enables us to extract actionable insightsfrom data without the impacts of highconsequence events.
In addition to project-based
collaboration, engagement withcustomers, industry, and regulatory
agencies occur continually to advanceprocess safety performance throughlearnings and best practice sharing.
Other contributions to industry include
technical publications or presentations,leading sessions in forums andconferences, and projects withcommittees and workgroups.

Our ambition to achieve zeroprocess safety events drives our
strategy and approach, which iscentered around the following
principles:1.

Process safety hazards andrisks are understood acrossthe Company.

2. Process safety is intrinsic toproduct and service delivery.
3. Sound risk mitigation isapplied through operational
and asset integrity.
4. Process safety is sustained
through continual learningand improvement.

Supporting workers’ health
The health, safety, and well-being of ourpeople is of paramount importance.
When we prioritize our physical andmental well-being, it empowers our
employees to be their best at work andat home.
Our well-being strategy, Living Well,provides all employees and theirfamilies a wide variety of resources,
benefits, and learning opportunities
designed to drive an inclusive culture
and facilitate ownership of health andwell being. Throughout the year, we
hosted events with health and wellness
experts, further embedded wellness into
leadership engagements, and provided
health and wellness resources and tools
to all employees.
In addition to physical and mental
health, we host dialogues across theCompany on how safety, security,
purpose, and connections at work
and in the community support ouroverall well-being. We understand thatmanaging one’s well-being is a uniqueand personal process, and we strive toconnect employees with the resources
they need, when they need them.
We work with our health benefit
providers and internal teams tooffer employees health and wellness
programs, telemedicine access, healthscreenings, immunizations, fitness
reimbursements, and virtual wellness

TOC | Letters | By the Numbers | About Baker Hughes | Sustainability | People | Planet | Principles | Appendicestools. Our employee assistance program
gives employees and their family
members direct access to professionalcoaches for in-the-moment counselingor referrals to community experts
and extended care providers to help
navigate daily life, manage remote work,and cope with major life events.

Employee health and privacy
We emphasize the protection of
personal information, including personal
health. We do not routinely houseor capture personal health-related
information unless required, such as
COVID vaccination status or medical
accommodations. In situations where
we collect personal health information,
we follow strict access control andconfidentiality policies inclusive but
not limited to our Personnel Privacy
Notice and our Data Privacy Policy. All
personal health information on workers
is maintained through our independentand highly inspected third-party
vendors that administer our benefit
programs. Should any personal healthrelated information be collected, we
have strict access control measures
limiting visibility and managementof data to only those required for thebusiness process.

Security
We are committed to protecting ourpeople, workplaces, and operations,and respecting communities globally
through proactive risk-based,
intelligence-led security programs
and mitigation measures. Our security
team supports business segments,

functions, and regions, in accordancewith global risk and operational
structure. The Security team oversees
the administration, governance,
and implementation of the crisis
management and business continuity
programs through global standards
and processes, training, exercises, andongoing engagement.
At the center of our security operations
is the Global Intelligence and Travel
Security Operations Center focused onmonitoring global developments andissuing timely updates, administering
the travel security program forhigh-risk locations, and operating
the emergency-notification systemfor critical communications andoperational impact.

are required to complete annual training
on human rights and adhere to our
supplier integrity guide, which includes
guidelines on human rights.
Aligned with our strategic outcomeof 100% of targeted (e.g., security)
personnel trained annually on humanrights policies and procedures, in 2022,
100% of our enterprise security personnel,
including full-time security personnel
and embedded contractors, received
training on human rights. We also
incorporate principles on security andhuman rights into requests for proposals
and tenders, to ensure all security
suppliers and contractors understandand adhere to our commitments toethical business conduct.

Other priorities include monitoring
global developments while educatingand equipping employees to recognize,
report, and prevent an array of potential
risks at our workplaces, while traveling,or across our operations. Workplace
violence, natural disasters, terrorism,
and broader socioeconomic or
geopolitical risks are just a few of thepotential risks monitored and managed.

Security and human rights
As a signatory to the UN Global Compact,
we align with the principles outlinedin the Voluntary Principles on Security
and Human Rights. In 2021, internal
training and awareness resources weredeveloped by our security team with the
purpose of embedding these principles
into our operations. Security personnel,
including embedded security contractors,

Ahmetovic Matteo | Shop operator, Flow Machining Cell
Masi Gabriele | Production supervisor, Flow Machining Cell
Bruni Marco | Shop operator, Flow Machining Cell

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Baker Hughes

97AppendicesAs an energy technology leader, we model leadership through excellence in sustainability performance. We strive to improve
how we track, measure, and report our sustainability data, following the best practices for sustainability reporting. Despite thedynamic development of guidance and standards for corporate sustainability reporting, we aim to report reliable, verified
investment-grade data. We are also committed to providing transparency on the quality of our data. The information containedin this report is governed by clearly defined processes and controls. Upon final review and approval of each KPI and metric byprocess owners, the report is drafted by our Sustainability Strategy and Performance Management Team. The report and its
included data are then reviewed by our internal audit team. Our internal audit function follows rigorous processes mirroring
financial data governance and auditing standards to increase the fidelity of our reporting. Additionally, certain People andPlanet data are assured by our independent accountants, KPMG, as discussed in their reports in Appendix B.

Appendix A – Standard Alignment Tables
Our sustainability report contains metrics that are aligned to the following recognized frameworks:•

Global Reporting Initiative (GRI)•

Sustainable Accounting Standards Board (SASB) Oil & Gas Services Industry Standard - Extractives & Minerals Processing
Sector•Task Force on Climate-Related Financial Disclosures (TCFD)

Appendix B – Metrics, Statements and Notes with Independent Accountants’ Reports
Our People and Planet data are presented as follows:

People:•Statement and Notes on Selected People Metrics, including Glossary of Terms

Planet:•Statements and Notes on Greenhouse Gas CO2e Emissions•

Statement and Notes on Waste

An Independent Accountants' Report precedes the related People and Planet reporting.

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Baker Hughes

TOC | Letters | By the Numbers | About Baker Hughes | Sustainability | People | Planet | Principles | AppendicesAppendix A:
Standard Alignment Tables
Interpreting this section
The information in the indices below show how we align to accepted sustainability standards, including industry standards. The
tables below list indicators from GRI, SASB, and TCFD on which we have fully or partially reported. Estimates are developed using
the best available data at time of publication. In some cases, data is estimated and is based solely on our interpretation andjudgment.
GRI Index
GRI TOPIC
STANDARD

Generaldisclosure

DISCLOSURENO.

DISCLOSURE TITLE

2-1

Organizational details

2-2

Entities included in theorganization’s sustainability Form 10-K
reporting

2-3

Reporting period,
frequency, and contact
point

From January 1st, 2022, through December 31st, 2022; Annual reporting; 05/24/2023.
SustainabilityTeam@bakerhughes.com

2-4

Restatements of
information

Baseline emissions (GRI 305-1d, 305-2d, 305-3e).

2-5External assurance

Independent Accountants’ Reports, p. B-4, p. B-18 - B-19

2-6

Activities, value chain, andCompany overview, p. 16
other business relationships

LOCATION AND DATA

Baker Hughes Company 17021 Aldine Westfield Houston, Texas.
Form 10-K

2-7

Employees

People chapter pp. 34-57

2-8

Workers who are not
employees

Our people, pp. 36-38.

2-9

Governance structure andcomposition

2023 Proxy filing,
p. 88

2-10

Nomination and selectionof the highest governancebody2023 Proxy filing

2-11

Chair of the highest
governance body2023 Proxy filing
p. 6

2-12

Role of the highest
governance bodyin overseeing themanagement of impacts

Ethics and compliance, p. 84
Governance of sustainability, pp. 88-89
Buffering sustainability risks through enterprise risk management, p. 89.

2-13

Delegation of responsibility
Governance of sustainability, pp. 88-89.
for managing impacts

2-14Role of the highest
governance body insustainability reporting

Governance of sustainability, pp. 88-89.

2-15

Conflicts of interest

Conflicts committee charter
2023 Proxy filing

2-16

Communication of criticalconcerns

Open reporting and consultation, p. 84.

*Denotes compliance with GRI 11: Oil and Gas Sector Standard 2021

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Baker Hughes

A-1

2-17

2-18

Our Board of Directors consists of corporate leaders with expertise in substantive
areas that guide our corporate strategy and objectives, including our ESG strategy.
In furtherance of its responsibility to oversee the company’s position on corporatesocial responsibility and public issues of significance which affect investors and otherkey stakeholders, the Governance & Corporate Responsibility Committee reviews theCollective knowledge of the composition of the Board on an annual basis in order to ensure that the collective
highest governance bodyknowledge, skills and experience of the Board aligns with the Company’s aligns with
the Company’s sustainability goals. In addition, the Committee recommends director
candidates for annual election, evaluates the composition of the Board annuallyand identifies desired skills, experience, and capabilities. The Committee strives tomaintain a Board with varied expertise and perspective and one that reflects diversity,
including but not limited to gender, ethnicity, background, and experience.
Our Board of Directors is committed to overseeing the integration of ESG principles
throughout the organization. The Board receives updates regarding our sustainability
strategy and long-term ESG objectives on a periodic basis. While our full Board istasked with ESG oversight, certain of its committees have responsibility for certain
aspects of the ESG strategy. The Human Capital and Compensation Committee
reviews human capital management metrics. The Governance and Corporate
Responsibility Committee oversees the Company’s positions on corporate social
responsibilities and has been charged by the Board with oversight responsibility of theCompany’s environmental matters as well as assessing its sustainability strategy andinitiatives, including the publication of our Corporate Responsibility report. In addition,
the Governance & Corporate Responsibility Committee receives regular reports from
Evaluation of theperformance of the highest management on the Company’s environmental and sustainability priorities and risks,
including progress on our net-zero emission goals and execution, our ESG reporting
governance body
frameworks, and ESG ratings. The Audit Committee monitors compliance, humanrights concerns and ethical risks. As reflected in our Governance Principles, the Board
performs an annual self-evaluation led by the lead independent director.
As a component of the annual evaluation, each director is asked to provide anassessment of the effectiveness of the Board and its committees. The Board
utilizes the results of its annual self-evaluation to identify areas of improvement
and strengthen corporate governance practices. The Governance and Corporate
Responsibility Committee monitors the process to assess the effectiveness of theBoard. On a periodic basis, the lead independent director has engaged independent
governance experts to facilitate the evaluation process and to identify areas.

GeneralDisclosure

A-2

Baker Hughes

2-19

Remuneration policies

The Human Capital and Compensation Committee reviews the executive anddirector's compensation each year to ensure that compensation aligns with thecompany's long-term strategies. Our compensation policies around executive
compensation reinforces market-aligned and pay for performance compensation
programs. The Human Capital and Compensation Committee has responsibility forreviewing the relationship between our risk management policies and practices,
corporate strategy and senior executive compensation and assessing whether any
such risk is reasonably likely to have a material adverse effect on the Company.
Additional details on our Board of Directors compensation and our executive
compensation policies and programs, including the process for determining
remuneration, can be found in the Compensation, Discussion & Analysis section of our
Proxy Statement as filed with the Securities and Exchange Commission.

2-20

Process to determine
remuneration

2023 Proxy filing

2-21

Annual total compensation
2023 Proxy filing
ratio

2-22

Statement on sustainable
development strategy

CEO Letter, pp. 6-7.

2-23

Policy commitments

Ethics and compliance, p. 84.

2-24

Embedding policy
commitments

Ethics and compliance, p. 84; Strive for sustainable, diverse, and inclusive supply
chains, p. 91.

2-25

Processes to remediate
negative impacts

Ethics and compliance, p. 84; Strive for sustainable, diverse, and inclusive supply
chains, p. 91.

TOC | Letters | By the Numbers | About Baker Hughes | Sustainability | People | Planet | Principles | AppendicesGeneral
Disclosure

Material
topicsEconomic
performanceMarketpresence
Indirect
economic
impact2-26

Mechanisms for seeking
advice and raisingconcerns

Open reporting and consultation, p. 84.

2-27

Compliance with laws andregulations

Material legal actions, if any, are reported in our Form 10-K.

2-28

Membership associations

Stakeholder engagement, p. 30

2-29

Approach to stakeholder
engagement

Stakeholder engagement, p. 30

2-30Collective bargaining
agreements

Approximately 26% of employees are covered under a collective bargaining
agreement.

3-1*

Process to determinematerial topics

Materiality assessment, pp. 28-29.

3-2*

List of material topics

Materiality assessment, pp. 28-29.

3-3*Management of material
topicsPeople, pp. 34-57; Planet, pp. 58-79; Principles, pp. 80-97.

201-1*

Direct economic value
generated and distributed

201-2*

Financial implications
and other risks andopportunities due toclimate change

Climate change as a financial risk and opportunity, pp. 68-69.

201-4*

Financial assistancereceived from government

Standard not material.

202-2*

Proportion of senior
management hired fromthe local community

Data not available.

203-1*

Infrastructure investments
and services supported

Data not available.

203-2*

Significant indirect
economic impacts

Data not available.

204-1*

Proportion of spending on
local suppliers

205-1*

Operations assessed forrisks related to corruption

205-2*

Communication andtraining about anticorruption policies andprocedures

205-3*

Confirmed incidents ofcorruption and actions
taken

Data not available due to confidentiality constraints.

206-1*

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

Form 10-K

Economic impact, p. 17
Tax not reported by country due to confidentiality constraints. Economic value
generated is not reported due to confidentiality constraints.

Principles performance snapshot, p. 81.
Procurement
practices

Anticorruption

Anticompetitive
Behavior“Local” is defined as being purchased in the same country as the location of the orderissuances. Our significant operations are those where we conduct manufacturing,assembly, maintenance, and service operations.
Principles performance snapshot, p. 81.
All 2 Business Segments assessed.
Anti-bribery and anti-corruption, p. 84.
Principles performance snapshot, p. 81.
Data not provided by region or employee category. Data regarding business partners(205-2c) is not available.

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A-3

Tax

EnergyWater andeffluents

Biodiversity

A-4

Baker Hughes

207-1*

Approach to tax

Tax, p. 90.

207-2*Tax governance, control,
and risk management

Tax, p. 90.

207-3*

Stakeholder engagement
and management ofconcerns related to tax

Tax, p. 90.

207-4*Country-by-country
reporting

Data not available.

302-1*

Energy consumption within
Planet performance snapshot, p. 59.
the organization

302-2*

Energy consumption
outside the organization

Data not available.

302-3*

Energy intensity

Planet performance snapshot, p. 59.

302-4

Reduction of energy
consumption

Data not available.

303-1*

Interactions with water as a
Water stewardship, pp. 73-75.
shared resource

303-2*

Management of water
Water stewardship, pp. 73-75.
discharge-related impacts

303-3*

Water withdrawal

Planet performance snapshot, p. 59.

303-4*

Water discharge

Planet performance snapshot, p. 59.

303-5*

Water consumption

Planet performance snapshot, p. 59.

304-1*

Operational sites owned,
leased, managed in, or
adjacent to, protectedareas and areas of highbiodiversity value outside
protected areas

Data not available.

304-2*

Significant impacts ofactivities, products, andservices on biodiversity

Data not available.

304-3*

Habitats protected or
restoredProtecting biodiversity and natural capital, pp. 76-77.

304-4*IUCN Red List species andnational conservation
list species with habitats
in areas affected byoperations

Planet performance snapshot, p.59.

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Emissions

Waste (2020)

Effluents andwaste (2016)305-1*

Direct (scope 1) GHG
emissions

Statements and Notes on Greenhouse Gas CO2e Emissions,pp. B-20 - B-30

305-2*

Energy indirect (scope 2)
GHG emissions

Statements and Notes on Greenhouse Gas CO2e Emissions,pp. B-20 - B-30

305-3*

Other indirect (scope 3)
GHG emissions

Statements and Notes on Greenhouse Gas CO2e Emissions,pp. B-20 - B-30

305-4*

GHG emissions intensity

Statements and Notes on Greenhouse Gas CO2e Emissions,pp. B-20 - B-30

305-5*

Reduction of GHG
emissions

Data not available.

305-6

Emissions of ozonedepleting substances(ODS)

Planet performance snapshot, p. 59.

305-7*

Nitrogen oxides (NOX),
sulfur oxides (SOX), andother significant air
emissions

Data not available.

306-1*

Waste generation andsignificant waste-related
impacts

Managing waste, pp. 71 – 72.

306-2*

Management of significant
Managing waste, pp. 71 – 72.
waste-related impacts

306-3*

Waste generated

Planet performance snapshot, p. 59.

306-4*

Waste diverted from
disposalPlanet performance snapshot, p. 59.

306-5*

Waste directed to disposal

Planet performance snapshot, p. 59.

306-3

Significant spills

Planet performance snapshot, p. 59.

New suppliers thatwere screened using
environmental criteria

Data not available.

Supplier
308-1
Environmental
Assessment

Employment

308-2

Negative environmental
impacts in the supply chain Engaging our suppliers, p. 66.
and actions taken

401-1*New employee hires andemployee turnover

Attract, retain, and develop diverse talent,
pp. 42-43.
a) Retaining our people by investing in our people, pp. 44-45.

401-2*

Benefits provided to fulltime employees that are
not provided to temporary
or part-time employees

401-3*

Parental leave

Labor/
Management 402-1*
relations

Minimum notice periods
regarding operationalchangesb) Our significant operations are those where we conduct manufacturing, assembly,
maintenance, and service operations.
A:c) People performance snapshot, pg. 35d:e) Data not available.
We comply with local laws and collective bargaining agreements pertaining tooperational changes. Notice periods vary by geography but are generally at least one
month.

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A-5

403-1*

Occupational health andsafety management
systemOur HSE management system, p. 92.

403-2*

Hazard identification, risk
assessment, and incident
investigation

Our approach to health and safety, pp. 94 – 95.

403-3*

Occupational healthservices403-4*

Worker participation,
consultation, andcommunication on
occupational health andsafetyOccupational safety, p. 92.

403-5*

Worker training on
occupational health andsafetyTraining to foster a safety culture, p. 95.

403-6*

Promotion of worker healthSupporting workers’ health, pp. 96-97.

Occupational
health and403-7*
safetyPrevention and mitigationof occupational healthand safety impacts
directly linked by business
relationships

403-8*

Workers covered by an
occupational health andsafety management
system

Our approach to health and safety, pp. 94 – 95.
Process safety management, p. 96.

Our approach to health and safety, p. 94.
Process safety management, p. 96.

Our HSE management system, p. 92.
Principles performance snapshot, p. 81.
Process Safety Management, p. 96.

403-9*

Work-related injuries

Formula for calculating TRIR: # of recordable cases X 200,000 hours divided by total
hours worked. Total hours worked are calculated using factors based on job family
data for each employee, such as length of shift and overtime typical of job families.
Information unavailable for non-employees due to data limitations.
Principles performance snapshot, p. 81.

Training andeducation

Diversityand equal
opportunity

Work-related ill health404-1*

Average hours of training
per year per employee

404-2*

Programs for upgrading
employee skills andtransition assistanceprograms

404-3

Percentage of employees
receiving regularperformance and careerdevelopment reviews

Table 4-1: Percentage of employees receiving annual performance and careerdevelopment reviews, p. 44.

405-1*

Diversity of governancebodies and employees

2023 Proxy Statement405-2*

Ratio of basic salary andremuneration of women
to mena:b) Data breakdown not available, but company-level data is available in latest UK
Gender Pay Gap Report.

Incidents of discriminationand corrective actions
taken

Data not available due to confidentiality constraints.

Non406-1*
discrimination

A-6

Baker Hughes

Our approach to health and safety, p. 94.

403-10*The ill health metrics are inclusive of non-Baker Hughes employees who work at
Baker Hughes facilities. However, in 2022, all ill health incidents involved Baker Hughes
employees.
Table 4-3: Average hours of training, p. 48.
People chapter pp. 34-57
Career transitions, p. 46.

People chapter pp. 34-57
People chapter pp. 34-57

TOC | Letters | By the Numbers | About Baker Hughes | Sustainability | People | Planet | Principles | AppendicesFreedom of
association
407-1*and collective
bargaining

Operations and suppliers
in which the right tofreedom of association and Data not available.
collective bargaining may
be at riskChild labor

408-1

Operations and suppliers at
408-1 a:b) Data not available. c) Human rights, p. 85, Strive for sustainable, diverse,
significant risk for incidents
and inclusive supply chains, p. 91.
of child labor

Forced orcompulsorylabor409-1*

Operations and suppliers at
significant risk for incidents 409-1a) Data not available. b) Human Rights, p. 85, Strive for sustainable, diverse, andof forced or compulsory
inclusive supply chains, p. 91.
labor

Securitypractices410-1*

Security personnel trainedin human rights policies orprocedures

Principles performance snapshot, p. 81.

Rights ofindigenous
peoples411-1*

Incidents of violations
involving rights ofindigenous peoples

Data not available due to confidentiality constraints.

413-1*

Operations with local
community engagement,
impact assessments, anddevelopment programs

Data not available.

413-2*

Operations with significant
actual and potential
negative impacts on local
communities

Form 10-K

414-1*New suppliers that werescreened using social
criteria

Data not available.

414-2*

Negative social impacts
in the supply chain andactions taken

Principles performance snapshot, p. 81.

415-1*

Political contributions

Political contributions report.

416-1*

Assessment of the healthand safety impacts ofproduct and service
categories

Data not available.

418-1

Substantiated complaints
concerning breaches ofcustomer privacy andlosses of customer data

Principles performance snapshot, p. 81.

Localcommunities

Supplier social
assessment

Public policy
Customer
Health and
SafetyCustomer
privacy

414-2b) Data not available.

TOC | Letters | By the Numbers | About Baker Hughes | Sustainability | People | Planet | Principles | Appendices Baker Hughes

A-7

SASB Sector Standards
SASB Sector Standards
SECTOR

TOPIC

CODE

ACCOUNTING METRIC

EM-SV-110a.1(1) Total Fuel Consumption:
Total fuel consumed, percentage
5,795,564 GJ
renewable, percentage used in: (1)on-road equipment and vehicles
and (2) off-road equipment.
GJ (2) 0% (3-1) 23.4%.

Emission reduction services& fuels management

Water Management
Services(3 -2) 76.6%.

Ecological Impact
Management

Become a net-zero business by
2050,

EM-SV-110a.2

Discussion of strategy or plansto address air emissions-relatedrisks, opportunities, and impacts.

EM-SV-110a.3

Percentage of engines in service
that meet Tier 4 compliance for
Data not available.
non-road diesel engine emissions.

EM-SV-140a.1(1) Total volume of fresh water
handled in operations, (2)percentage recycled.

EM-SV-140a.2

Discussion of strategy or plansto address water consumption
and disposal-related risks,
opportunities, and impacts.

EM-SV-150a.1(1) Data not available.
Volume of hydraulic fracturing
fluid used, percentage hazardous. (2) Data not available.

EM-SV-150a.2

Discussion of strategy or plans toaddress chemical-related risks,
opportunities, and impacts.

Managing chemicals,

EM-SV-160a.1

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

(1) Standard not applicable(2) Standard not applicable.

EM-SV-160a.2

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

Biodiversity and natural capital,
pp. 76-77.

Chemicals Management

Oil & Gas services

INFORMATION REFERENCE

pp. 62-65.

(1) Standard not applicable.
(2) Standard not applicable.
Water stewardship,
pp. 73-75.

p. 79.

(1a) 0.22(1b) Data not available.
(1c) 0.23

Workforce Health & Safety

EM-SV-320a.1(1) Total recordable incident rate
(TRIR), (2) fatality rate, (3) near
miss frequency rate (NMFR),(4) total vehicle incident rate
(TVIR), and (5) average hours ofhealth, safety, and emergency
response training for (a) full-time
employees,(2a) Data not available. Absolutevalue is 1.
(2b) Data not available. Absolutevalue is zero.
(2c) Data not available.
(3a) Data not available.

(b) contract employees, and(3b) Data not available.
(3c) Data not available.
(4a) Data not available, absolutevalue 213.

(c) short-service employees.

(4b) Data not available.
(4c) Data not available.
(5a) 5.3 hours.
(5b) 0.64 hours.
(5c) Data not available.

A-8

Baker Hughes

TOC | Letters | By the Numbers | About Baker Hughes | Sustainability | People | Planet | Principles | AppendicesWorkforce Health & Safety

EM-SV-320a.2

Description of management
systems used to integrate aculture of safety throughout thevalue chain and project lifecycle.

Process safety management, p.
96.

EM-SV-510a.1

Amount of net revenue incountries that have the 20
lowest rankings in Transparency
International’s Corruption
Perception Index.

$300,670,377.00

EM-SV-510a.2

Description of the management
system for prevention of
Ethics and compliance, p. 84.
corruption and bribery throughout
the value chain.

EM-SV-530a.1

Discussion of corporate positions
related to government regulations
Public policy and working with
and/or policy proposals thatgovernments, p. 33.
address environmental and social
factors affecting the industry.

EM-SV-540a.1

Description of management
systems used to identify andmitigate catastrophic and tailend risks.

Process safety management, p.
96.

EM-EP-160a.2(1) Number and aggregate
volume of hydrocarbon spills,(2) volume in Arctic, (3) volume
impacting shorelines with ESI
rankings 8-10, and (4) volume
recovered.

(1) 37 barrels of oil; 3 barrels of fuel(2) 0 barrels (3) 0 barrels (4) 37
barrels.

EM-SV-000.A

Number of active rig sites.

Standard not applicable.

EM-SV-000.B

Number of active well sites.

Standard not applicable.

EM-SV-000.C

Total amount of drilling
performed.

Standard not applicable.

EM-SV-000.D

Total number of hours worked by
all employees.

Data not available.

Business Ethics & Payments
Transparency
Oil & Gas services

Management of the Legal& Regulatory Environment

Critical Incident Risk
Management

Oil & gas exploration &production

Oil & Gas services

Biodiversity Impacts

TOC | Letters | By the Numbers | About Baker Hughes | Sustainability | People | Planet | Principles | Appendices Baker Hughes

A-9

Task Force on Climate-Related Financial Disclosures (TCFD) Index
The following table references Baker Hughes 2022 financial and sustainability disclosures with the Task Force on ClimateRelated Financial Disclosures (TCFD) recommendations.

1. Governance
TCFD RECOMMENDATIONSDISCLOSURE CONTENT AND REFERENCES

Describe the board's oversight of climate-relatedrisks and opportunities.

Corporate governance, p. 88.

Describe management's role in assessing andmanaging climate-related risks and opportunities.

Governance of sustainability, pp. 88-89.
Governance of sustainability, pp. 88-89.

2. Strategy
TCFD RECOMMENDATIONSDISCLOSURE CONTENT AND REFERENCES• CEO letter, pp. 6-7.
Describe the climate-related risks and opportunities• Climate change as a financial risk and opportunity, pp. 68-69.
the organization has identified over the short,medium, and long-term.
• Form 10-K, item 1A. risk factors, pp. 14-25.
Describe the impact of climate-related risks andopportunities on the organization's businesses,
strategy, and financial planning.
Describe the resilience of the organization's
strategy, taking into consideration different
climate-related scenarios, including a 2°C or lower
scenario.

• CEO letter, pp. 6-7.
• CSO letter, pp. 8-9.
• Innovation and collaboration, p. 19.
• Climate change as a financial risk and opportunity, pp. 68-69.
• Climate change as a financial risk and opportunity, pp. 68-69.

3. Risk Management
TCFD RECOMMENDATIONSDISCLOSURE CONTENT AND REFERENCES

Describe the organization's processes for
identifying and assessing climate-related risks.

• Become a net-zero business by 2050, pp. 62-65.

Describe the organization's processes for
managing climate-related risks.

• Climate change as a financial risk and opportunity, pp. 68-69.
• Planet, pp. 58-79.

Describe how processes for identifying, assessing,and managing climate-related risks are integrated • Buffering sustainability risks through our Enterprise Risk Management process, p. 89.
into the organization's overall risk management.

4. Metrics and Targets
TCFD RECOMMENDATIONSDISCLOSURE CONTENT AND REFERENCES

Disclose the metrics used by the organization toStatements and Notes on Greenhouse Gas CO2e Emissions,assess climate-related risks and opportunities inpp.
B-20 - B-30
line with its strategy and risk management process.
Disclose scope 1, scope 2, and, if appropriate, scope Statements and Notes on Greenhouse Gas CO e Emissions,
2
3 greenhouse gas (GHG) emissions, and the related
pp.
B-20
B-30
risks.
Describe the targets used by the organization to
manage climate-related risks and opportunities
and performance against targets.

A-10

Baker Hughes TOC

Become a net-zero business by 2050, pp. 62-65.

| Letters | By the Numbers | About Baker Hughes | Sustainability | People | Planet | Principles | AppendicesAppendix B:
Metrics, Statements and Notes with
Independent Accountants’ Reports
Interpreting this section
We follow rigorous processes to present the relevant metrics in accordance with the methodology specified in the subject
matter. In this section, you will find the independent accountants' reports providing limited or reasonable assurance overselected metrics found in this section.
SUBJECT MATTER

2022 ASSURANCE LEVEL

People: Employee headcount information

Employee counts

People: Statement and Notes on Selected
People Metrics, including Glossary of Terms

All listed People metrics on pp. B-5 - B-16

Limited assurance

Scope 1 emissions

Reasonable assurance

Planet: Statements and Notes on Greenhouse
Scope 2 emissions
Gas CO2e Emissions

Reasonable assurance

Planet: Statement and Notes on Waste

Scope 3 emissions

Limited assurance

Waste metrics

Limited assurance (first year assured)

TOC | Letters | By the Numbers | About Baker Hughes | Sustainability | People | Planet | Principles | Appendices

Baker Hughes

B-1

Employee headcount information
METRIC

Employeecounts1

CRITERIA 1

Management
metricKEY PERFORMANCE INDICATORS (KPI) 2

2022 3# of total employees.

55,235# of total employees by region Asia Pacific (APAC).

7,081# of total employees by region - Russia
and Commonwealth of Independent
States (RCIS).

681# of total employees by region Middle East and North Africa (MENAT).

9,486# of total employees by region North America (NAM).

14,080# of total employees by region Latin America (LATAM).

5,828# of total employees by region Sub-Saharan Africa (SSA).

1,006# of total employees by region –Europe.

17,073# of total full time employees.

54,490# of total full time employees by region- Asia Pacific (APAC).

7,026# of total full time employees byregion - Russia and Commonwealth of
Independent States (RCIS).

679# of total full time employees by region- Middle East and North Africa (MENAT).

9,475# of total full time employees by region- North America (NAM).

14,046# of total full time employees by region- Latin America (LATAM).

5,745# of total full time employees by region- Sub-Saharan Africa (SSA).

997# of total full time employees by region– Europe.

16,522# of total part time employees.

745# of total part time employees byregion - Asia Pacific (APAC).

55# of total part time employees byregion - Russia and Commonwealth of
Independent States (RCIS).

2

METHODOLOGY

Included to indicate the most comparable GRI metric; however, GRI disclosures are not complete relative to the requirements of GRI.

2 Date range is from (1/1/22-12/31/22) unless otherwise noted.
3 Percentages are rounded to one decimal place. If a percentage shows as 0.0 that means its less than .05 percent.

B-2

Baker Hughes

TOC | Letters | By the Numbers | About Baker Hughes | Sustainability | People | Planet | Principles | AppendicesEmployee headcount information
METRIC

CRITERIA 1

KEY PERFORMANCE INDICATORS (KPI) 2

2022 3# of total part time employees byregion - Middle East and North Africa(MENAT).

11# of total part time employees byregion - North America (NAM).

34# of total part time employees byregion - Latin America (LATAM).

83# of total part time employees byregion - Sub-Saharan Africa (SSA).

9# of total part time employees byregion – Europe.

551# of total employees by gender – Men.

43,535# of total employees by gender –Women.

10,554# of total employees by gender Gender undeclared.

1,140# of total employees by gender No gender selected.

6

METHODOLOGY# of total full time employees by gender
43,107– Men.
# of total full time employees by gender
10,238– Women.
# of total full time employees by gender
1,139- Gender undeclared.

EmployeecountsManagement
metric# of total full time employees by gender6- No gender selected.
# of total part time employees bygender – Men.

428

# of total part time employees bygender – Women.

316# of total part time employees bygender - Gender undeclared.

1# of total employees by age group under 30.

5,606# of total employees by age group 30-50.

38,352# of total employees by age group over 50.

11,274# of total employees by age group No age selected.

3# of total senior professional and above
8,944
employees (SPB+).
# of total Executive Band and above
employees (EB+).

639# of total employees by job function –Commercial.

4,968# of total employees by job function –Enabling.

6,583# of total employees by job function –Production.

32,112# of total employees by job function –Technical.

10,389# of total employees by job function –Other.

1,183

TOC | Letters | By the Numbers | About Baker Hughes | Sustainability | People | Planet | Principles | Appendices Baker Hughes

B-3

KPMG LLP
2200 Wells Fargo Tower
201 Main Street
KPMG
LLP TX 76102-3105
Fort Worth,2200 Wells Fargo Tower
201 Main Street
Fort Worth, TX 76102-3105

Independent Accountants’ Review Report
Independent Accountants’ Review Report
To the Board of Directors and Management
Baker Hughes Company:
To the Board of Directors and ManagementWe
have
reviewed
the Selected People Metrics as of and for the year ended December 31, 2022 in the
Baker
HughesCompany:
accompanying Statement and Notes on Selected People Metrics (the “People Review Subject Matter”) in
Appendix
B of the 2022
Corporate
Sustainability
Reportof Baker
Hughes Company
We have reviewed
the Selected
PeopleMetrics asof and(thefor “Report”)
the year ended
December31, 2022 in(thethe“Company”).
The
Company’s
managementisresponsibleforpreparingandpresenting
thePeople
Reviewaccompanying Statement and Notes on Selected People Metrics (the “People Review Subject
Matter”)
inSubject Matterin accordancewith the
Methodology
and (therelatedGlossaryof Terms
set forthin the People
Appendix
B of the2022 Corporate
Sustainability
Report“Report”)
of Baker
HughesCompany(theReview Subject(the “People
Criteria”).
Our responsibility
is to express
a conclusionon the People“Company”).
TheMatter
Company’s
management
is responsible
for preparing
and presenting
the People
Review
Review
Subject
Matterbasedonour
review.
Subject Matter in accordance with the Methodology and related Glossary of Terms set forth in the People
Review Subject Matter (the “People Criteria”). Our responsibility is to express a conclusion on the People
Our
review
was conductedin accordancewith attestation standards established by the American Institute ofReview
Subject
Matter basedon our review.
Certified Public Accountants in AT-C section 105, Concepts Common to All Attestation Engagements, andAT-Csection210,
Review Engagements.
Those
standards
require thatwe plan andperform
the review
to of
Our review
wasconducted
in accordance withattestation
standards
establishedby theAmericanInstituteobtainlimitedassurance
about
whetheranymaterial
modifications
should
be
made
to
the
People
Review
Certified Public Accountants in AT-C section 105, Concepts Common to All Attestation Engagements, andSubject
Matter210,
in orderfor Engagements.
it to be in accordancewith the criteria.
performed
in a review
review tovary in
AT-C section
ReviewThose standards
requireThethatprocedures
we plan andperform thenatureand timing
from, andarewhether
substantiallyless in extent
than, anshould
examination,
thetoobjectiveof which
is toobtain limited
assurance
about
any material
modifications
be madethe People
Review
obtainassurance
the People
Matter is inaccordance
the vary in
Subjectreasonable
Matter in orderfor it toabout
be inwhether
accordancewith theReview
criteria.Subject
The procedures
performed
in awith
review
criteria,
in allmaterial
respects,
order to express
opinion.
Accordingly,
we dothenotobjective
express of
such
an opinion.
nature andtimingfrom,and are in
substantiallyless inan
extentthan,
an examination,
which
is to
Becauseofthelimitednatureoftheengagement,
the
level
of
assurance
obtainedinareviewissubstantiallyobtain reasonable assurance about whether the People Review Subject Matter is in accordance with thelower thanthematerial
assurancethat would
have
obtained
had anexamination
performed.
We believe
that
criteria,
in allrespects,in orderto beenexpress
an opinion.
Accordingly,
webeendo notexpress suchan opinion.
thereview
evidenceobtainedissufficientandappropriate
toprovideareasonable
basis
for
our
conclusion.
Because of the limited nature of the engagement, the level of assurance obtained in a review is substantiallylower than the assurance that would have been obtained had an examination been performed. We believe that
We revieware required
to be
independentand toandmeet
our other ethicalresponsibilities
in basisaccordance
relevant
theevidenceobtainedis sufficientappropriate
to provide
a reasonable
for our withconclusion.
ethical requirements related to the engagement.
We are required to be independent and to meet our other ethical responsibilities in accordance with relevant
The procedures
we performed
based on our professional judgment and consisted primarily of inquiries of
ethicalrequirements
related to werethe engagement.
management to obtain an understanding of the methodology and inputs used in deriving the People Review
Subject
Matter, recalculating
selectionof thePeople
Review Subject
Matterbased on primarily
the PeopleThe
procedures
we performeda werebased
on ourprofessional
judgment
and consistedof Criteria
inquiriesandof
inputsidentifiedbymanagement,
andperforming
analyticalprocedures.
management to obtain an understanding of the methodology and inputs used in deriving the People Review
Subject Matter, recalculating a selection of the People Review Subject Matter based on the People Criteria andExceptidentified
to the extent
stated in our Independent
Accountants’
Report on the GHG Examination Subject Matter,
inputsby management,
and performing
analytical procedures.
GHG Review Subject Matter and Waste Review Subject Matter, our review was limited to the People Review
Subjectto
Matterpresented
The Report
includes Reportother information
andmetrics thatSubject
were notExceptthe extent
statedininthe
ourReport.
Independent
Accountants’on the GHG
Examination
Matter,subject
toourreview
procedures.
Accordingly,
we
do
not
expressanopinion,conclusion,
or
any
other
form of
GHG Review Subject Matter and Waste Review Subject Matter, our review was limited to the People Review
assuranceonsuchinformationor
metrics.
Subject Matter presented in the Report. The Report includes other information and metrics that were notsubject to our review procedures. Accordingly, we do not express an opinion, conclusion, or any other form of
Based on our
we are notorawareof any material modifications that should be made to the People
assuranceon review,
such information
metrics.
Review Subject Matter as of and for the year ended December 31, 2022, in order for it to be in accordance with
the People
Criteria.
Basedon ourreview, we are not aware of any material modifications that should be made to the People
Review Subject Matter as of and for the year ended December 31, 2022, in order for it to be in accordance with
the People Criteria.
May 24, 2023
May 24, 2023
B-4

Baker Hughes

KPMG LLP, a Delaware limited liability partnership and a member firm of
the KPMG global organization of independent member firms affiliated with

TOC | Letters | By theKPMG
Numbers| Limited,
Abouta private
Baker
HughesSustainability| People | Planet | Principles | AppendicesInternational
Englishcompany |limited
by guarantee.

Statement and Notes on Selected People Metrics
METRIC

Professional
development
planning withmanager

Regularperformanceand careerdevelopment
reviews

CRITERIA 1

Management
metricGRI 404-3

KEY PERFORMANCE INDICATORS (KPI) 2

2022 3

METHODOLOGY# of employees completing professional
development planning with their manager.

45,454

Number of all effective employees, including
employees terminated during the year ended in
December 31, 2022, who completed a professional
development touchpoint and evidenced andrecorded in HR enterprise system for review period(which includes annual priority setting, ongoingtouchpoints, or annual performance and careerdevelopment review).

% of employees receiving regularperformance and career development
reviews.

75.0%% of employees receiving regularperformance and career development
reviews by gender – Men.

72.8%

% of employees receiving regularperformance and career development
reviews by gender – Women.

84.0%% of employees receiving regularperformance and career development
reviews by gender - Gender undeclared.

31.0%% of employees receiving regularperformance and career development
reviews by gender - No gender selected.

100.0%% of employees receiving regularperformance and career development
reviews by career band - Professional band
and above (PB+).

95.8%% of employees receiving regularperformance and career development
reviews by career band - Senior Professional
Band (SPB+).

95.8%% of Executive Band (EB+) employees
receiving regular performance and careerdevelopment reviews.

94.1%% of PB+ employees receiving regularperformance and career development
reviews by gender – Men.

96.0%

% of PB+ employees receiving regularperformance and career development
reviews by gender – Women.

95.3%% of PB+ employees receiving regularperformance and career development
reviews by gender - Gender undeclared.

88.9%% of PB+ employees receiving regularperformance and career development
reviews by gender - No gender selected.

100.0%

Number of eligible effective employees who havecompleted the annual performance and careerdevelopment review divided by total number of
eligible effective employees.
Number of eligible effective employees who havecompleted the annual performance and careerdevelopment review in respective gender category
divided by total number of eligible effective
employees in respective gender category.
Number of eligible effective employees who
have completed the annual performance andcareer development review in respective career
band divided by total number of eligible effective
employees in respective career band.
Number of eligible effective PB+ employees who
have completed the annual performance and careerdevelopment review in respective gender category
divided by total number of eligible effective PB+
employees in respective gender category.
Number of eligible effective PB+ employees who
have completed the annual performance andcareer development review in respective job function
divided by total number of eligible effective PB+
employees in respective job function. For purposesof this metric, eligible effective employees exclude
employees on leave and those hired after October 1,
2022. Leadership Training Band is not included in PB+
for 2022 because they follow their own performance
management process.

1 Included to indicate the most comparable GRI metric; however, GRI disclosures are not complete relative to the requirements of GRI.
2 Date range is from (1/1/22-12/31/22) unless otherwise noted.
3 Percentages are rounded to one decimal place. If a percentage shows as 0.0 that means its less than .05 percent.

TOC | Letters | By the Numbers | About Baker Hughes | Sustainability | People | Planet | Principles | Appendices Baker Hughes

B-5

METRIC

Regularperformanceand careerdevelopment
reviews

Employees
in leadershipprograms

CRITERIA 1

GRI 404-3

Management
metricKEY PERFORMANCE INDICATORS (KPI) 2

2022 3% of PB+ employees receiving regularperformance and career development
reviews by job function – Commercial.

93.4%% of PB+ employees receiving regularperformance and career development
reviews by job function – Enabling.

95.3%% of PB+ employees receiving regularperformance and career development
reviews by job function – Production.

95.5%% of PB+ employees receiving regularperformance and career development
reviews by job function – Technical.

97.8%% of PB+ employees receiving regularperformance and career development
reviews by job function – Other.

0.0%# of employees participating in leadershipdevelopment programs.

527# of employees participating in eachleadership development program – ASPIRE.

300# of employees participating in eachleadership development program – IMPACT.

32# of employees participating in eachleadership development programs –CULTIVATE.

191# of employees participating in eachleadership development program – ASCEND.

4# of ASPIRE program participants that identify
155
as women.
# of IMPACT program participants that
identify as women.

Women in STEM Managementroles
metricB-6

Baker Hughes% of women in STEM roles.

METHODOLOGY

Number of participants in leadership development
programs including ASPIRE (early career leadershipprogram), IMPACT (mid-career leadership program),
CULTIVATE (mid-career leadership program for
women), and ASCEND (military transition program)
who were part of the program as of December 31,
2022.
Number of participants in each ASPIRE, IMPACT,CULTIVATE, and ASCEND programs. Number ofparticipants who identify as women for ASPIRE andIMPACT.

16

12.1%

Baker Hughes has identified job groups as STEM rolesconsistent with roles defined by US Bureau of Labor
Statistics.
Number of effective employees who identify as
women and who are in STEM roles divided by alleffective employees in STEM roles.

TOC | Letters | By the Numbers | About Baker Hughes | Sustainability | People | Planet | Principles | AppendicesMETRIC

Community
contributions

CRITERIA 1

Management
metricUS employees - GRI 405-1,
people of color Management(PoC)
MetricKEY PERFORMANCE INDICATORS (KPI) 2

2022 3

METHODOLOGY

Total amount of charitable pledges andcontributions (USD).

$75,272,787

Number of self-reported volunteer hours completed
during FY 2022 by active full-time employees.

Amount of employee-matched contributions$756,121
made by the Baker Hughes Foundation (USD).

Amount of employee-matched contributions paid by
the Baker Hughes Foundation.

Amount of company and foundation
financial pledges and contributions (USD)4.

$1,992,500

Amount of company in-kind contributions(USD)5.

$72,524,166

Amount of company and foundation financial
pledges and contributions. 2022 financial pledges
and contributions based on Baker Hughes Foundation
financial pledges and contributions only.

# of volunteer service hours.

27,181% of US employees who identify as people ofcolor.

36.1%% of US employees who identify as people ofcolor by gender – Men.

75.4%

% of US employees who identify as people ofcolor by gender – Women.

24.6%% of US employees who identify as people ofcolor by gender - Gender undeclared.

0.0%% of US employees who identify as people ofcolor by seniority - Senior Professional Bandand above (SPB+).

32.1%% of US employees who identify as people ofcolor by seniority - Executive Band and above 28.6%(EB+).

Employee
attrition

GRI 401-1

Amount of company in-kind contributions. In-kind value
is calculated by looking at product sales price of in-kind
donations. Company in-kind contributions represent
OFSE business segment software licenses only.
Total amount of charitable pledges and contributions(sum of employee-matched contributions, foundation
financial pledges and contributions, company in-kind
contributions).

Number of effective employees in US who identify as
people of color divided by total number of effective
employees in US as of year-end.
Number of effective employees in US who identify as
people of color (PoC) and are in respective seniority
divided by total number of effective employees in US
who are in respective seniority.
Number of effective employees in US who identify as
people of color in respective gender category divided
by total number of effective employees in US who
identify as people of color.

# of total employee attrition.

6,609

Number of effective employees who were voluntarily
or involuntarily terminated in FY 2022.

# of total employee attrition by gender –
Men.

5,291

Number of effective employees who were terminateddivided by the average monthly effective employee
count for FY 2022.

# of total employee attrition by gender –Women.

1,274# of total employee attrition by gender Gender undeclared.

44% of total employee attrition (rate).

12.0%% of total employee attrition (rate) by gender
12.0%– Men.
% of total employee attrition (rate) by gender
12.1%– Women.

Number of effective employees in respective
gender category who were terminated divided by
the average monthly effective employee count inrespective gender category for FY 2022.
Number of effective employees in respective agegroup who were terminated divided by the averagemonthly effective employee count in respective agegroup for FY 2022.
Number of effective employees in respective region
who were terminated divided by the average monthly
effective employee count in respective region for FY
2022.
Employees are counted more than once if they are
hired or terminated more than once in the same year.

4 2022 financial contributions based on Baker Hughes Foundation financial contributions only.
5 Company in-kind contributions represent OFSE operating segment software license donations only.

TOC | Letters | By the Numbers | About Baker Hughes | Sustainability | People | Planet | Principles | Appendices

Baker Hughes

B-7

METRICCRITERIA 1

KEY PERFORMANCE INDICATORS (KPI) 2

2022 3

METHODOLOGY% of total employee attrition (rate) by gender
16.5%- Gender undeclared.

Employee
attrition

B-8

Baker Hughes

GRI 401-1# of total employee attrition by region - Asia
Pacific (APAC).

647# of total employee attrition by region Russia and Commonwealth of Independent
States (RCIS).

1,019# of total employee attrition by region Middle East and North Africa (MENAT).

909# of total employee attrition by region North America (NAM).

1,990# of total employee attrition by region Latin America (LATAM).

505# of total employee attrition by region Sub-Saharan Africa (SSA).

67# of total employee attrition by region –Europe.

1,472% of total employee attrition (rate) by region- Asia Pacific (APAC).

9.4%% of total employee attrition (rate) by region- Russia and Commonwealth of Independent 34.9%
States (RCIS).
% of total employee attrition (rate) by region- Middle East and North Africa (MENAT).

9.9%% of total employee attrition (rate) by region- North America (NAM).

15.0%% of total employee attrition (rate) by region- Latin America (LATAM).

9.1%% of total employee attrition (rate) by region- Sub-Saharan Africa (SSA).

7.1%% of total employee attrition (rate) by region– Europe.

9.1%# of total employee attrition by age group under 30.

1,088# of total employee attrition by age group 30-50.

4,247# of total employee attrition by age group over 50.

1,274% of total employee attrition (rate) by age
group - under 30.

19.1%% of total employee attrition (rate) by age
group - 30-50.

11.1%% of total employee attrition (rate) by age
group - over 50.

11.6%

TOC | Letters | By the Numbers | About Baker Hughes | Sustainability | People | Planet | Principles | AppendicesMETRIC

Voluntary
attrition

CRITERIA 1

Management
MetricKEY PERFORMANCE INDICATORS (KPI) 2

2022 3

METHODOLOGY# of voluntary attrition.

4,714# of voluntary attrition by gender – Men.

3,739

# of voluntary attrition by gender – Women.

974# of voluntary attrition by gender - Genderundeclared.

1% of voluntary attrition (rate).

8.6%% of voluntary attrition (rate) by gender –
Men.

8.5%

% of voluntary attrition (rate) by gender –Women.

9.3%% of voluntary attrition (rate) by gender Gender undeclared.

0.4%# of voluntary attrition by region Asia Pacific (APAC).

556# of voluntary attrition by region - Russia
and Commonwealth of Independent States(RCIS).

391# of voluntary attrition by region Middle East and North Africa (MENAT).

657# of voluntary attrition by region North America (NAM).

1,608# of voluntary attrition by region Latin America (LATAM).

363# of voluntary attrition by region Sub-Saharan Africa (SSA).

49# of voluntary attrition by region – Europe.

1,090% of voluntary attrition (rate) by region Asia Pacific (APAC).

8.1%% of voluntary attrition (rate) by region Russia and Commonwealth of Independent
States (RCIS).

13.4%

Number of effective employees in each region who
were voluntarily terminated divided by the averagemonthly effective employee count in each region for
FY 2022.

% of voluntary attrition (rate) by region Middle East and North Africa (MENAT).

7.2%

Employees are counted more than once if they are
hired or terminated more than once in the same year.

% of voluntary attrition (rate) by region North America (NAM).

12.1%% of voluntary attrition (rate) by region Latin America (LATAM).

6.5%% of voluntary attrition (rate) by region Sub-Saharan Africa (SSA).

5.2%% of voluntary attrition (rate) by region –Europe.

6.7%# of voluntary attrition by age group under 30.

858

Number of effective employees who were voluntarily
terminated in FY 2022.
Number of effective employees who were voluntarily
terminated divided by the average monthly effective
employee count for FY 2022.
Number of effective employees in each gendercategory who were voluntarily terminated divided
by the average monthly effective employee count ineach gender category for FY 2022.
Number of effective employees in each age group
who were voluntarily terminated divided by theaverage monthly effective employee count in eachage group for FY 2022.

# of voluntary attrition by age group - 30-50. 3,082# of voluntary attrition by age group - over
50.

774

% of voluntary attrition (rate) by age group under 30.

15.1%% of voluntary attrition (rate) by age group 30-50.

8.0%% of voluntary attrition (rate) by age group over 50.

7.1%

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B-9

METRICCRITERIA 1

KEY PERFORMANCE INDICATORS (KPI) 2

2022 3# of internal candidates hired.

4,983

METHODOLOGY# of internal candidates hired by gender – Men. 3,734

New
candidates
hired

GRI 401-1# of internal candidates hired by gender –Women.

1,247# of internal candidates hired by gender Gender undeclared.

1# of internal candidates hired by gender No gender selected.

1# of internal candidates hired by region Asia Pacific (APAC).

478# of internal candidates hired by region Russia and Commonwealth of Independent
States (RCIS).

84# of internal candidates hired by region Middle East and North Africa (MENAT).

781# of internal candidates hired by region North America (NAM).

1,615# of internal candidates hired by region Latin America (LATAM).

428# of internal candidates hired by region Sub-Saharan Africa (SSA).

63# of internal candidates hired by region – Europe. 1,534# of internal candidates hired by age group- under 30.

807# of internal candidates hired by age group- 30-50.

3,702# of internal candidates hired by age group- over 50.

474# of external candidates hired.

10,733

Number of external candidates hired. Number ofexternal candidates by respective gender who were
hired. Number of external candidates by respective
age group who were hired. Number of external
candidates by respective region who were hired.
Number of internal candidates hired. Number ofinternal candidates by respective gender who were
hired. Number of internal candidates by respective
age group who were hired. Number of internal
candidates by respective region who were hired.
Employees are counted more than once if they are
hired or terminated more than once in the same year.

# of external candidates hired by gender – Men. 7,182# of external candidates hired by gender –Women.

2,377# of external candidates hired by gender Gender undeclared.

1,174# of external candidates hired by region Asia Pacific (APAC).

1,166# of external candidates hired by region Russia and Commonwealth of Independent
States (RCIS).

247# of external candidates hired by region Middle East and North Africa (MENAT).

1,707# of external candidates hired by region North America (NAM).

3,157# of external candidates hired by region Latin America (LATAM).

1,437# of external candidates hired by region Sub-Saharan Africa (SSA).

189# of external candidates hired by region – Europe. 2,830

B-10

Baker Hughes TOC# of external candidates hired by age group- under 30.

3,515# of external candidates hired by age group- 30-50.

6,353# of external candidates hired by age group- over 50.

865| Letters | By the Numbers | About Baker Hughes | Sustainability | People | Planet | Principles | AppendicesMETRIC

Employees bygender

CRITERIA 1

GRI 405-1

KEY PERFORMANCE INDICATORS (KPI) 2

2022 3% of employees by gender – Men.

78.8%

METHODOLOGY% of employees by gender – Women.

19.1%% of employees by gender - Gender
Undeclared.

2.1%% of employees by gender - No genderselected.

0.0%% of employees by gender for each job
function - Commercial and Men.

75.6%

% of employees by gender for each job
function - Enabling and Men.

49.0%

% of employees by gender for each job
function - Production and Men.

88.2%

% of employees by gender for each job
function - Technical and Men.

78.7%

% of employees by gender for each job
function - Other and Men.

4.2%

% of employees by gender for each job
function - Commercial and Women.

24.4%

Number of effective employees in respective genderdivided by total number of effective employees.

% of employees by gender for each job
function - Enabling and Women.

51.0%% of employees by gender for each job
function - Production and Women.

11.7%

Number of effective employees in respective seniority
and gender divided by total effective employees inrespective seniority.

% of employees by gender for each job
function - Technical and Women.

21.3%% of employees by gender for each job
function - Other and Women.

0.5%% of employees by gender for each job
function - Commercial and Gender
Undeclared.

0.0%% of employees by gender for each job
function - Enabling and Gender Undeclared.

0.0%% of employees by gender for eachjob function - Production and Gender
Undeclared.

0.0%

Number of effective employees in respective function
and gender divided by total effective employees inrespective job function.
Number of effective employees designated as people
manager of respective gender divided by total
effective employees designated as people manager.
Number of employees on Board of Directors who
identify as women divided by total number of Boardof Directors.

% of employees by gender for each job
0.0%function - Technical and Gender Undeclared.
% of employees by gender for each job
function - Other and Gender Undeclared.

95.3%% of employees by gender for each job
function - Production and No genderselected.

0.0%% of employees by gender for each seniority- SPB+ and Men.

81.4%

% of employees by gender for each seniority- SPB+ and Women.

18.6%% of employees by gender for each seniority- SPB+ and Gender undeclared.

0.0%

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B-11

METRIC

Employees bygender

CRITERIA 1

GRI 405-1

KEY PERFORMANCE INDICATORS (KPI) 2

2022 3% of employees by gender for each seniority- EB+ and Men.

75.6%

% of employees by gender for each seniority- EB+ and Women.

24.4%% of employees by gender for each seniority- EB+ and Gender undeclared.

0.0%

METHODOLOGY% of employees that are people managers by
79.2%
gender – Men.
% of employees that are people managers by
18.8%
gender – Women.
% of employees that are people managers by
2.0%
gender - Gender undeclared.
% of employees that are people managers by
0.0%
gender - No gender selected.
% of women-identifying employees on Board
33.0%
of Directors.

Employees by
age group

B-12

Baker Hughes

GRI 405-1% of employees by age group - under 30.

10.2%% of employees by age group - 30-50.

69.4%% of employees by age group - over 50.

20.4%% of employees by age group - Age groupleft blank.

0.0%% of employees by age group for each job
function - under 30 and Commercial.

6.1%% of employees by age group for each job
function - under 30 and Enabling.

10.9%% of employees by age group for each job
function - under 30 and Production.

11.0%% of employees by age group for each job
function - under 30 and Technical.

10.1%% of employees by age group for each job
function - under 30 and Other.

Number of effective employees in respective agegroup, divided by total effective employees.

0.9%% of employees by age group for each job
function - 30-50 and Commercial.

68.8%

Number of effective employees in respective agegroup and job function divided by total effective
employees in respective job function.

% of employees by age group for each job
function - 30-50 and Enabling.

69.4%% of employees by age group for each job
function - 30-50 and Production.

68.9%% of employees by age group for each job
function - 30-50 and Technical.

68.2%% of employees by age group for each job
function - 30-50 and Other.

97.6%% of employees by age group for each job
function - over 50 and Commercial.

25.2%% of employees by age group for each job
function - over 50 and Enabling.

19.7%% of employees by age group for each job
function - over 50 and Production.

20.1%

Number of effective employees in respective agegroup and seniority divided by total effective
employees in respective seniority.

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Employees by
age group

Parental leave

CRITERIA 1

GRI 405-1

GRI 401-3

Employee
Management
resource groupmetricmembership

KEY PERFORMANCE INDICATORS (KPI) 2

2022 3% of employees by age group for each job
function - over 50 and Technical.

21.7%% of employees by age group for each job
function - over 50 and Other.

1.5%% of employees by age group for each job
function - Age group blank and Production.

0.0%% of employees by age group for eachseniority - under 30 and SPB+.

0.3%% of employees by age group for eachseniority - under 30 and EB+.

0.0%

% of employees by age group for eachseniority - 30-50 and SPB+.

67.4%% of employees by age group for eachseniority - 30-50 and EB+.

65.7%

% of employees by age group for eachseniority - over 50 and SPB+.

32.3%% of employees by age group for eachseniority - over 50 and EB+.

34.3%

# of employees entitled to parental leave.

50,283# of employees entitled to parental leave bygender – Men.

39,824# of employees entitled to parental leave bygender – Women.

10,440# of employees entitled to parental leave bygender - Gender Undeclared.

13# of employees entitled to parental leave bygender - No gender selected.

6# of US employees that took parental leave.

300# of US employees that took parental leaveby gender – Women.

90# of US employees that took parental leaveby gender – Men.

210

# of US employees that returned from leavein the reporting period following leave.

237# of US employees that returned from leavein the reporting period following leave bygender – Women.

76# of US employees that returned from leavein the reporting period following leave bygender - Men.

160

# of US employees that returned from leavein the reporting period following leave bygender - No gender selected.

1# of employees enrolled in at least one
employee resource group.

8,099% of employees enrolled in at least one
employee resource group.

14.4%

METHODOLOGY

Total number of effective employees entitled toparental leave.
Number of effective employees entitled to parental
leave by gender.
Number of U.S. effective employees with an approved
leave for maternity and/or parental that have been
approved.
Number of U.S. effective employees with an approved
leave for maternity and/or parental that have been
approved by gender.
Number of U.S. effective employees with approved
leave for maternity and/or parental that havereturned to work in FY 2022.
Number of U.S. effective employees with approved
leave for maternity and/or parental that havereturned to work in FY 2022 by gender.

Total number of active employees enrolled in at least
one employee resource group as of December 31,
2022. Total number of active employees enrolled in atleast one employee resource group as of December
31, 2022 divided by total number of active employees.

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B-13

METRICCRITERIA 1

KEY PERFORMANCE INDICATORS (KPI) 2

2022 3% of employees by generation group –Greatest.

0.0%

METHODOLOGY% of employees by generation group – Silent. 0.0%

Employees bygeneration
group

Country
representation

Management
metricManagement
metric% of employees by generation group –Boomers.

7.5%% of employees by generation group Generation X.

36.4%% of employees by generation group Generation Y.

51.3%% of employees by generation group Generation Z.

4.9%% of employees by generation group Generation left blank.

0.0%# of employees working outside the UnitedStates.

42,442

Number of effective employees that are working
outside of the US as of December 31, 2022.

# of countries with employees.

89

Number of countries with effective employees.

# of nationalities represented by employees.

157

Number of nationalities represented by effective
employees, as self-reported in HR enterprise system.

Number of effective employees by generation groupdivided by total effective employees.

Number of system recorded learning hours
completed divided by number of effective employees
as of December 31, 2022.
Average hours of training per employee7

37

Number of system recorded learning hours
completed in respective gender divided by numberof effective employees in respective gender as ofDecember 31, 2022.
Number of system recorded learning hours
completed in respective career band divided bynumber of effective employees in respective career
band as of December 31, 2022.

Average hoursof training
per year per
employee6

GRI 404-1

Average hours of training per employee by
gender – Men.

39

Number of system recorded learning hours
completed in respective job function divided bynumber of effective employees in respective job
function as of December 31, 2022.
Number of system recorded learning hours
completed in respective operating segment divided
by number of effective employees in respective
operating segment as of December 31, 2022.

Average hours of training per employee by
gender – Women.

30

Average training hours includes online and in person
training completed during FY 2022, for effective
employees as of December 31, 2022, which is recordedin our enterprise learning management system.
The metric does not include training completions
maintained outside of the enterprise system and may
contain multiple course completions for the same
course by the same employee.

6 In 2022, estimated duration of each training is used for the calculation, or where an estimated duration is not available, we used the median duration of actual completions of the
training.
7 In 2022, we are more specifically representing hours by using estimated duration field in the learning management system for each respective course. Where the duration is blank/
empty we used the median duration hours of the Activity Type.

B-14

Baker Hughes TOC| Letters | By the Numbers | About Baker Hughes | Sustainability | People | Planet | Principles | AppendicesMETRIC

Average hoursof training
per year per
employee6

CRITERIA 1

GRI 404-1

KEY PERFORMANCE INDICATORS (KPI) 2

2022 3

Average hours of training per employee by
gender - Gender undeclared.

6

Average hours of training per employee bycareer band - Professional band and above
employees (PB+).

24

Average hours of training per employee bycareer band - Senior Professional Band andabove employees (SPB+).

17

Average hours of training per employee bycareer band - Executive Band and above
employees (EB+).

12

Average hours of training per employee by
operating segment - Industrial and Energy
Technology (IET).

18

Average hours of training per employee by
operating segment - Oilfield Services andEquipment (OFSE).

51

Average hours of training per employee by
operating segment – Headquarters.

18

Average hours of training per employee by
job function – Commercial.

16

Average hours of training per employee by
job function – Enabling.

20

Average hours of training per employee by
job function – Production.

51

Average hours of training per employee by
job function – Technical.

18

Average hours of training per employee by
job function – Other.

5

METHODOLOGYTOC | Letters | By the Numbers | About Baker Hughes | Sustainability | People | Planet | Principles | Appendices Baker Hughes

B-15

Glossary of Terms
TERM

DEFINITION

Gender

Self-identified as men, women, undeclared or no gender selected in HR enterprise system.

Career band

Company’s internal classification of various jobs depending on level of responsibility and contribution.

Career band including Professional Band, Lead Professional Band, Senior Professional Band, Executive Band, Senior
Executive Band, Vice President, Senior Vice President who are in office-based developing, supporting, applying, leading,Professional Band and and shaping roles who are at professional, lead professional, or functional tactical positions.
above (PB+)
For 2022 metrics, Leadership Training Band is not included in PB+ because they follow their own performance
management process.
Senior Professional
Band and above(SPB+)

Career band including Senior Professional Band, Executive Band, Senior Executive Band, Vice President, Senior Vice
President who are in office-based applying, leading, and shaping roles and who are senior level managers, seasoned
managers, and specialized individual contributors requiring in-depth understanding of their business or function.

Executive Band andabove (EB+)

Career band including Executive Band, Senior Executive Band, Vice President, Senior Vice President.

PoC

People of color includes employees who identify as American Indian or Alaska Native, Asian, Black, or African American,
Hispanic, or Latino, Native Hawaiian or other Pacific Islander, two or more races. This designation is self-reported in the
U.S..

ERG

Employee Resource Group. We have the following ERGs: Black Employee Network, Asian Pacific American Forum,
Enabled, LatinX, Multicultural, Pride@work, Veterans, Women’s Network.

FY 2022

Financial year counted from January 1st, 2022, to December 31st, 2022.

Effective employees

All employees excluding interns, co-ops, trainees, apprentice, inactive employees and contingent workers.

Active employees

All employees excluding employees on long-term leave of absence, inactive employees and contingent workers.

Job function

Company’s internal classification according to job family group (Commercial, Enabling, Production, Technical, andOther). A summary of the jobs compassed by these job functions can be found on page 38.

Internal candidates

An existing employee that filled an open internal position/requisition within the Company.

External candidates

A person that is not an employee of the Company that was hired into an open position/requisition.

Entitled to parental
leave

Entitled to parental leave based on country eligibility criteria, utilizing the Baker Hughes country policies and/or statutory
regulations, whichever is more encompassing.

Primary andSecondary parent

Company’s designation used for the parental leave benefit program to distinguish the amount of leave entitlement.
This is a self-designation by employee as primary or secondary.

Management roles/
People manager

Effective employees who are in a people leader role.

Seniority

Seniority/senior roles references two specific groupings of effective employees in leadership, Senior Professional Bandand above (as defined above) and Executive Band and above (as defined above).

Employee time type
category

All effective employees will be categorized into either the Part-Time category (employees with Time Type of Part Timeplus employees with Time Type of Full Time who are less than 1.0 FTE) and Full-Time category (employees with TimeType of Full Time and 1.0 or greater FTE).

Age group

All effective employees are categorized into one of the following age groups: Under 30 years old, 30 – 50 years old, andover 50 years old. Employees whose birthdate is not available will be categorized as age group left blank. Calculation
for age group will use age as whole numbers only considered as of 12/31/2022 (i.e. if employee is 50 years old and 6days, employee will be in the 30-50 age group).

Nationality

An identification of a person based on their status of belonging to a particular nation. This is self-identified by
employees in the HR enterprise system.

Generation group

All effective employees will be categorized into one of the following generation groups based on birth year: Silent (1928
through 1945), Baby Boomers (1946 through 1964), Generation X (1965 through 1979), Generation Y/Millennials (1980
through 1995) and Generation Z (1996 through present); employees whose birth year is not available will be categorized
as generation group left blank.

RegionA group of countries located in the same geographically specified area as determined by the company. Regions
include: Asia Pacific (APAC), Russia and Commonwealth of Independent States (RCIS), Middle East and North Africa(MENAT), North America (NAM), Latin America (LATAM), Sub-Saharan Africa (SSA), and Europe.

B-16

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blank.

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B-17

KPMG LLP
2200 Wells Fargo Tower
201 Main Street
KPMG
LLP TX 76102-3105
Fort Worth,2200 Wells Fargo Tower
KPMG
LLP
201 MainStreet
2200Worth,Wells TX
Fargo
Tower
Fort
76102-3105
201 Main Street
Fort Worth, TX 76102-3105

Independent Accountants’ Report
Independent Accountants’ Report
To the Board of Directors and Management
Independent Accountants’ Report
Baker Hughes Company:
To the Board of Directors and Management
We
have examined
the Scope 1 and Scope 2 greenhouse gas emissions data and related notes for the year
Baker
To the Hughes
Board ofCompany:
Directors
Management
ended
December31, 2022andin theaccompanying Statements and Notes on Greenhouse Gas CO2e Emissions
Baker
HughesCompany:of Baker Hughes Company (the “Company”) (the “GHG Examination Subject Matter”).
(the
“GHG
Statements”)
We have examined the Scope 1 and Scope 2 greenhouse gas emissions data and related notes for the year
We havealso reviewed:
ended
December
31,the2022
in theaccompanying
Statements
andNotes ondata
Greenhouse
Gas
CO2fore Emissions
We haveexamined
Scope
1 and
Scope 2 greenhousegasemissionsand related
notes
the year(the“GHG
Statements”)
ofBaker
HughesCompany(the“Company”)
(the
“GHG
Examination
Subject
Matter”).
ended
December
31,
2022
in
the
accompanying
Statements
and
Notes
on
Greenhouse
Gas
CO
2e Emissions•We have
the Scope3 greenhouse gas emissions data and related notes for the year ended December 31, 2022 inalso
reviewed:(the the“GHG
Statements”)
Baker
HughesCompany“Company”)(the “GHG Examination Subject Matter”).
GHG
Statementsof(the“GHG
Review
Subject (theMatter”);
andWe have also reviewed:
Statement
and Notes gas
on Wastefor theyear
ended
December“Waste
Review• the Scope
3 greenhouseemissionsdataandrelatednotes for31,
the2022year (theendedDecember
31,Subject
2022 in
Matter”).
the
GHG
Statements
(the
“GHG
Review
Subject
Matter”);
and• the Scope 3 greenhouse gas emissions data and related notes for the year ended December 31, 2022 in• the
the Statement
and Notes on
Waste
for theyear ended
December31, 2022 (the “Waste Review Subject
GHG Statements“GHG
Subject
Matter”);
and 2022
These
subject
matters are(theincludedinReview
Appendix
B of theCompany’s
Corporate Sustainability Report (theMatter”).
•“Report”).
the Statement and Notes on Waste for the year ended December 31, 2022 (the “Waste Review Subject
Matter”).
These subject matters are included in Appendix B of the Company’s 2022 Corporate Sustainability Report (theThe
Company’s management is responsible for preparing and presenting the GHG Examination Subject Matter“Report”).
These
subject matters
included inAppendix
B of
the Company’s
2022 Corporate
Sustainability(theinaccordancewith the areGreenhouse
Gas
Protocol:A Corporate
Accounting
and ReportingStandard,Report
Revised“Report”).
Editionand
GHG
ProtocolScope
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Guidance:Anamendment
to
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ProtocolCorporate
Standard
The Company’s management is responsible for preparing and presenting the GHG Examination Subject Matter(collectively,
the“GHG
Protocol Corporate
Standard”),
and for preparing
andpresenting
the
GHG Review
inaccordancewith
the Greenhouse
Gas Protocol:
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Accounting
andReportingStandard,
Revised
The
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management
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and(Scopepresenting
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Subject
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MatterinaccordancewiththeCorporate
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3)
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andReportingStandard
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andReportingStandard,
Revised(the “GHG Protocol
Scope
3 Standard”);
thestandards andtogetherare referredtoas the “GHG
Protocol.”(collectively,
the “GHG
ProtocolCorporate
Standard”),
for preparing
andpresenting
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the KPMG global organization of independent member firms affiliated with

KPMG International Limited, a private English company limited by guarantee.
examination, the objective of whichis to obtain reasonable assurance about whether the GHG Review Subject

B-18

Baker Hughes TOC| Letters |KPMG LLP, a Delaware limited liability partnership and a member firm of
the KPMG global organization of independent member firms affiliated with
International
Englishcompany |limited
by guarantee.
By the KPMG
Numbers| Limited,
Abouta private
Baker
HughesSustainability
KPMG LLP, a Delaware limited liability partnership and a member firm of
the KPMG global organization of independent member firms affiliated with

| People | Planet | Principles | Appendices

Matter and Waste Review Subject Matter are in accordance with the criteria, in all material respects, in order toexpress an opinion. Accordingly, we do not express such an opinion. Because of the limited nature of theengagements, the level of assurance obtained in the reviews is substantially lower than the assurance thatwould have been obtained had examinations been performed. We believe that the review evidence weobtained is sufficient and appropriate to provide a reasonable basis for our conclusions.
We are required to be independent and to meet our other ethical responsibilities in accordance with relevant
ethical requirements related to the engagements.
The procedures we performed in our reviews were based on our professional judgment and consisted primarilyof inquiries of management to obtain an understanding of the methodology and inputs used in deriving the
GHG Review Subject Matter and Waste Review Subject Matter, recalculating a selection of the GHG Review
Subject Matter and Waste Review Subject Matter based on the methodologies and inputs identified bymanagement, and performing analytical procedures.
Except to the extent stated in our Independent Accountants’ Review Report on the People Review Subject
Matter, our examination was limited to the GHG Examination Subject Matter presented in the Report and ourreviews were limited to the GHG Review Subject Matter and Waste Review Subject Matter presented in theReport. The Report includes other information and metrics that were not subject to our examination or review
procedures. Accordingly, we do not express an opinion, conclusion, or any other form of assurance on suchinformation or metrics.
As described in the GHG Statements and Statement and Notes on Waste, energy use data and waste volume
are subject to measurement uncertainties resulting from limitations inherent in the nature of and methods used
for determining such data. Obtaining sufficient appropriate examination evidence to support our opinion andsufficient appropriate review evidence to support our conclusions does not reduce the inherent uncertainty inthe data. The selection by the Company’s management of different but acceptable measurement techniques
could have resulted in materially different measurements.
As described in Note 2 of the GHG Statements, the Company has recalculated its 2019 Scope 1, 2, and 3
emissions to account for structural changes, boundary enhancement, and enhancements in methodology anddata, in accordance with the GHG Protocol.
In our opinion, the GHG Examination Subject Matter of the Company for the year ended December 31, 2022 ispresented in accordance with GHG Protocol Corporate Standard, in all material respects.
Based on our reviews, we are not aware of any material modifications that should be made to the GHG Review
Subject Matter or the Waste Review Subject Matter for the year ended December 31, 2022, in order for them to
be in accordance with the GHG Protocol Scope 3 Standard and the Waste Criteria, respectively.

May 24, 2023

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B-19

Statements and Notes on Greenhouse Gas CO2e Emissions
Statement on Greenhouse Gas CO2e Emissions (MT CO2e)
2019

2022

Total scope 1 Emissions

500,603376,172

Total scope 2 Indirect Emissions - Location Based

295,317

210,902

Total scope 2 Indirect Emissions - Market Based

286,752

193,933

Total scope 1 and 2 Emissions - Market Based

787,355

570,105

Total reported scope 3 Emissions

188,223,561

252,414,204

Note 1 - Company
Baker Hughes Company ("Baker Hughes," "the Company," "we," "us," or "our") is an energy technology company with a diversified
portfolio of technologies and services that span the energy and industrial value chain. Built on a century of experience andconducting business in over 120 countries, our innovative technologies and services are taking energy forward.
The Statements and Notes on Greenhouse Gas (GHG) CO2e Emissions have been prepared based on reporting year 2022, fromJanuary 1, 2022, to December 31, 2022, corresponding to the Baker Hughes Company fiscal year. The Statements and Notes on
GHG CO2e emissions also include emissions data from base year 2019 (January 1, 2019, to December 31, 2019), corresponding to
the Company’s fiscal year.
The Statements and Notes on GHG CO2e Emissions do not include 2020-2021 emissions data since recalculated GHG CO2eemissions data for all years between the base year and the reporting year is optional, as noted in the World Resources Institute(WRI)/ World Business Council for Sustainable Development (WBCSD) Greenhouse Gas Protocol: A Corporate Accounting andReporting Standard, Revised Edition.

Scope 1
GHG CO2e emissions information has been prepared in accordance with the WRI/WBCSD Greenhouse Gas Protocol: A Corporate
Accounting and Reporting Standard, Revised Edition. Scope 1 represents direct GHG CO2e emissions that occur from sourcesthat are owned or controlled by Baker Hughes.
• Scope 1, facilities: Where fuel quantity is known, stationary combustion source methodology is used as described in the EPA
Mandatory Reporting Rule, 40 CFR Part 98 Subpart C based on actual purchases during the year. Where fuel quantity is

unknown, estimation methodology is based on size of occupied space and type of operation using the US Energy Information
Administration (EIA) Commercial Buildings Energy Consumption Survey (CBECS) data.

• Scope 1, field activities: Where fuel quantity is known, stationary combustion source methodology is used as described in the
EPA Mandatory Reporting Rule, 40 CFR Part 98 Subpart C based on actual purchases during the year, or actual consumption
in instances where fuel was not purchased. Where fuel quantity is unknown, fuel quantity is calculated using known fuelpurchase records, operating hours and an average hourly consumption rate for field equipment.

• Scope 1, vehicles and marine vessels: Where fuel quantity is known or based on fixed usage contracts, mobile combustion
source methodology is as described in the EPA Center for Corporate Climate Leadership GHG Inventory Guidance on Direct
Emissions from Mobile Combustion Sources. Where vehicle fuel quantity is unknown, estimation methodology is based onregional averages of similar vehicles with known fuel usage.

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Baker Hughes TOC| Letters | By the Numbers | About Baker Hughes | Sustainability | People | Planet | Principles | AppendicesScope 2
GHG CO2e emissions information has been prepared in accordance with the WRI/WBCSD GHG Protocol Corporate Standard

and GHG Protocol Scope 2 Guidance: An amendment to the GHG Protocol Corporate Standard. Scope 2 accounts for GHG CO2eemissions from the generation of purchased electricity consumed by the Company.

• Scope 2, facilities: Emissions are calculated from electricity use with EPA eGRID, Canada National Inventory, and International
Energy Agency emission factors based on actual purchases during the year. Location-based emissions are calculated using
these grid factors by location for our global facility portfolio. We also calculate market-based emissions based on electricity
procurement decisions and details including contracts, renewable energy certificates (RECs) in the US, and renewableenergy guarantees of origin (REGOs) in the UK and European Union. European residual mix factors are used where REGOs areunavailable. Where electricity use data is unavailable, estimation methodology involves calculation of energy use based onsquare footage and facility type using the EIA CBECS data.
• Scope 2, remote work: Emissions associated with remote work are included in scope 2. We take this approach tocounterbalance reduced emissions resulting from fewer office-based employees working on-site at our facilities since the
COVID-19 pandemic. The Company continues to offer flexible work arrangements to our global employees and remote
working has continued at a somewhat lower rate. Emissions from home office electricity use were assessed in a Baker
Hughes-specific Home Office study. The study assessed the actual electricity use by volunteer employee participants andcalculated the corresponding emissions using IEA Emission Factors.

Scope 3
GHG CO2e emissions information has been prepared in accordance with the WRI/WBCSD GHG Protocol: Corporate Value

Chain (scope 3), Accounting and Reporting Standard. Scope 3 includes indirect GHG CO2e emissions (not included in scope 2)that occur in the value chain of the Company, including both upstream and downstream emissions categories listed in Notes 7
and 8.

Collectively, the WRI/WBCSD GHG Protocol: A Corporate Accounting and Reporting Standard, Revised Edition, the GHG Protocol
Scope 2 Guidance: An amendment to the GHG Protocol Corporate Standard and the GHG Protocol: Corporate Value Chain(scope 3), Accounting and Reporting Standard are referred to as the “GHG Protocol” in this document.

Estimation uncertainties
The Company obtains energy use data from across our global operations for the calculation of our GHG inventory inaccordance with the GHG Protocol. However, there are estimation uncertainties resulting from the limitations inherent in themethodologies used to calculate energy and emissions for the subset of facilities and activities where actual use data is notavailable. These methodologies are described within the Statements and Notes on GHG CO2e Emissions for scope 1, 2 and 3

emissions categories. The selection by the Company's management of different but acceptable measurement techniques
could have resulted in materially different measurements.

Note 2 – GHG reporting inventory boundaries
The Company presents its emissions under the operational control approach, accounting for emissions from operations overwhich it, or one of its subsidiaries, has the full authority to introduce and implement its operating policies. We exclude minority
owned joint ventures not operated by the Company.

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B-21

Operational boundaries
Scope 1 and 2 Operational boundaries: We include scope 1 emissions from the combustion of fuels on-site at our facilities,
including natural gas, distillate, gasoline, kerosene, propane, residual fuel oil, and hydrofluorocarbons (HFCs). Scope 1 also
includes offsite activities associated with transportation in our company vehicle fleet and field activities related to stimulation
work carried out on marine vessels, pressure pumping operations, integrated well services (IWS), and offshore wireline activities.
Scope 2 includes CO2e emissions from the purchase and self-generation of renewable and nonrenewable electricity used onsite across our global facility portfolio. Emissions associated with remote work are also included in scope 2.
For both scope 1 and 2, the Company includes both owned and leased facilities, vehicles, and equipment. The Company
accounts for CO2e emissions from long-term leased assets (equipment, vehicles, and real estate) that are treated as wholly
owned assets in financial accounting and are recorded as such on the balance sheet. We account for emissions from all otherleased vehicles based on operational fleet management inventories. Facilities subleased to third parties are excluded andscope 1 does not include emissions from process and pipeline services (PPS) because robust methods to calculate these are not
yet available.

Scope 3 operational boundaries:
Scope 3 includes:• GHG Protocol category 1 – purchased goods and services.
• Category 2 - capital goods; We are now disclosing Category 2 based on improvements in data and methodology since our2021 Corporate Responsibility report.
• Category 3 – fuel and energy related activities (not included in scope 1 and 2).
• Category 4 – shipments paid for by Baker Hughes and captured in transportation management systems.
• Category 5 – waste from operations.
• Category 6 – business travel.
• Category 7 – employee commuting.
• Category 9 – shipments not paid for by Baker Hughes.
• Category 11 – direct-use phase emissions from products and services.
• Category 15 – equity investments.

Base year
The GHG CO2e base year applies to scope 1, scope 2, and scope 3 emissions and has been prepared in accordance with the
GHG Protocol set out herein. The Company has established 2019 as the base year for scope 1, 2 and 3 as it best represents themost recent year of business-as-usual operations prior to the COVID-19 pandemic. In accordance with the GHG Protocol, Baker
Hughes has established a policy to recalculate base year emissions based on a 5% cumulative significance threshold applied
to adjustments of scope 1, scope 2, and scope 3 categories individually for the current reporting year and base year. Significant
changes evaluated for recalculation include recent company structural changes, boundary enhancement, and enhancements
in methodology and data. The recalculation of our fixed-base year emissions is in accordance with the GHG Protocol’s “sameyear/all-year” approach. Adjustments to the scope 1 and 2 base year were made for:1.

Divestiture of two business units in 2022 for categories 3 and 5, which use scope 1 and 2 activity data.

2. Improvements in accounting methodology for facility emissions and scope 2 market-based emissions based on enhanced
data processing capabilities.
3. Improvements in data quality and estimation methodology for fleet emissions.

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Baker Hughes TOC| Letters | By the Numbers | About Baker Hughes | Sustainability | People | Planet | Principles | AppendicesAdjustments to the scope 3 2019 base year were made for:1.

Divestiture of two business units in 2022 for categories 3 and 5.

2. Divestiture of three business units in 2021 for all categories except 3 and 5 which were adjusted in the prior year.
3. Acquisition of three business units in 2021 for all categories except category 3 which was adjusted in the prior year.
4. Improvements in accounting methodology for category 3.
5. Improvements in data quality for category 1.
6. Boundary change for category 11.

Greenhouse gases covered
Emissions data is provided in metric tonnes (MT) for each GHG separately in addition to the total of all GHGs. The GHG CO2eemissions disclosed in the Statements and Notes on GHG CO2e Emissions include the following seven greenhouse gases: carbon
dioxide (CO2), methane (CH4), nitrous oxide (N2O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), nitrogen trifluoride (NF3),
and sulfur hexafluoride (SF6).

Market-based approach
Carbon emissions can be reduced through energy efficiency and conservation measures and by increasing the use of zerocarbon or low-carbon energy sources. The market-based approach calculates the carbon emissions based on our electricity
procurement decisions which include the use of renewables and zero-emissions energy sources, such as nuclear. Details
including contracts, renewable energy certificates (RECs), and renewable energy guarantees of origin (REGOs) are used in
calculating market-based emissions. We apply energy attribute certificates (EACs) only to the electricity consumption of
specific facilities under the contract. Excess EACs are not applied to sites or regions other than those under contract. We use
market-based values to assess our performance against our stated emissions reduction goals in the current reporting year ascompared to our base year.

Global warming potentials
GHG CO2e emissions were calculated using the Global Warming Potentials (GWP) from the International Panel on Climate

Change (IPCC) Fifth Assessment Report (AR5 – 100 year). Where emission factors are published with AR4 GWP, we have adjusted
the factors to use AR5 for consistency across our inventory.

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B-23

Emissions Factors
EMISSIONS SCOPE

EMISSIONS SOURCEEMISSIONS FACTORS

2019: -United States – Environmental Protection Agency (EPA) Emission Factors forGreenhouse Gas Inventories (Table 1), March 26, 2020.

VehicleDistillate fuel,gasoline/petrol

United States – Environmental Protection Agency (EPA), Inventory of U.S. Greenhouse
Gas Emissions and Sinks: 1990–2016 EPA 430-R-18-003, Annex 3.2.2022:
United States – Environmental Protection Agency (EPA) Emission Factors forGreenhouse Gas Inventories (Table 1), April 1, 2022.
United States – Environmental Protection Agency (EPA), Inventory of U.S. Greenhouse
Gas Emissions and Sinks: 1990–2019 EPA 430-R-21-005, Annexes to the Inventory of U.S.
GHG Emissions and Sinks, Table A-79, Table A-82 and Table A-83.

Field activities
Scope 1

(Pressurepumping, wireline, Distillate fuelintegrated wellservices, andmarine vessels)

2019: United States – Environmental Protection Agency (EPA) Emission Factors forGreenhouse Gas Inventories (Table 1 and 5), March 26, 2020.
2022: United States – Environmental Protection Agency (EPA) Emission Factors forGreenhouse Gas Inventories (Table 1 and 5), April 1, 2022.
2019: United States – Environmental Protection Agency (EPA) Emission Factors forGreenhouse Gas Inventories (Table 1), March 26, 2020.

Facilities

2022: United States – Environmental Protection Agency (EPA) Emission Factors for
Natural gas, distillate,Greenhouse Gas Inventories (Table 1), April 1, 2022.
gasoline, kerosene,
LPG, propane, residual International Journal of Hydrogen Energy 46 – Global warming consequences of
replacing natural gas with hydrogen in the domestic energy sectors of future lowfuel oil, HFCs
carbon economies in the UK and USA, July 8, 2021.
California Air Resources Board, High GWP Refrigerants (https://ww2.arb.ca.gov/
resources/documents/high-gwp-refrigerants).
2019: United States – Environmental Protection Agency (EPA) eGRID 2018, March 9,2020; 2019 Canada National Inventory Report 1990-2017, Annex 13-2 through 13-14,
2019; International Energy Agency (IEA) – IEA 2017 released 2019; Association of Issuing
Bodies, European Residual Mixes 2019, Version 1.1, August 9, 2020.

Facilities

Electricity

Remote work

Electricity

Category 1

Purchased goods and 2019: EXIOBASE 3 EE MRIO tables, Version 3.7, December 18, 2019.
services2022: EXIOBASE 3 EE MRIO tables, Version 3.8.2, October 21, 2021.

Category 2

Capital goods

2019 & 2022: GHG Protocol and Quantis “Documentation of the data and calculations
to support the Greenhouse Gas Protocol Scope 3 Screening Tool”, last updated
February 2021.

Category 3

Fuel- and energy
related activities (notincluded in scope 1 orscope 2)

GHG Protocol and Quantis “Documentation of the data and calculations to support
the Greenhouse Gas Protocol Scope 3 Screening Tool”, last updated February 2021.

Scope 2

Scope 3

B-24

Baker Hughes TOC

2022: United States – Environmental Protection Agency (EPA) eGRID 2020, April 1,
2022; 2022 Canada National Inventory Report 1990-2020, Part 3, Annex 13, Table
A13-1 through Table A13-14; International Energy Agency (IEA) – IEA 2022 released
September 2022; Association of Issuing Bodies, European Residual Mixes 2021, Version
1.0, May 31, 2022.
2019: International Energy Agency (IEA) – IEA 2017 released 2019.
2022: International Energy Agency (IEA) – IEA 2022 released September 2022.

| Letters | By the Numbers | About Baker Hughes | Sustainability | People | Planet | Principles | Appendices

Category 4

Category 5

Upstreamtransportation anddistribution

Waste generated
in operations

2019: DEFRA 2019. UK Government GHG Conversion Factors for Company Reporting
2019, v 1. Freighting Goods Table.
2022: DEFRA 2022. UK Government GHG Conversion Factors for Company Reporting
2022, v 1. Freighting Goods Table.
2019: DEFRA 2019. UK Government GHG Conversion Factors for Company Reporting
2020, v 1. Waste Disposal Table.
2022: DEFRA 2022. UK Government GHG Conversion Factors for Company Reporting
2022, v 1. Waste Disposal Table.
2019: United States - Environmental Protection Agency (EPA) Emission Factors forGreenhouse Gas Inventories (Tables 2 and 10), March 26, 2020.
UK Government - DEFRA GHG Conversion Factors for Company Reporting (hotel stay,Business travel- air, Business travel- land), 2019.
UK Government – DEFRA GHG Conversion Factors for Company Reporting (Businesstravel - land), 2020.

Category 6

Business Travel2022: UK Government - DEFRA GHG Conversion Factors for Company Reporting (hotel
stay, Business travel- air, Business travel- land), 2022.
United States - Environmental Protection Agency (EPA) Emission Factors forGreenhouse Gas Inventories (Tables 2 and 10), April 1, 2022.
2019 and 2022:
India GHG Program 2015. v 1, Passenger Car Table, p. 9

Scope 3US EPA Environmentally-Extended Input-Output (USEEIO) v1.1
2019: United States - Environmental Protection Agency (EPA) Emission Factors forGreenhouse Gas Inventories (Table 10), March 26, 2020.
Category 7

Employeecommuting2022: United States - Environmental Protection Agency (EPA) Emission Factors forGreenhouse Gas Inventories (Table 10), April 1, 2022.
UK Government - DEFRA GHG Conversion Factors for Company Reporting (Businesstravel - Land).

Category 9

Downstream
transportation anddistribution

2019 and 2022: Same as Category 4.
International Energy Agency (IEA) – IEA 2019 released 2019.
International Energy Agency (IEA) – IEA 2022 released September 2022.
SimaPro 9.0.0.30 with Ecoinvent 3.5 database.

Category 11

Use of sold products

United States - Environmental Protection Agency (EPA) Emission Factors forGreenhouse Gas Inventories (Table 7), April 1, 2022.
IEA SDG7: Data and Projections,"Energy intensity," April 2022.

Category 15

Investments

GHG Protocol and Quantis “Documentation of the data and calculations to support
the Greenhouse Gas Protocol Scope 3 Screening Tool”, last updated February 2021.

TOC | Letters | By the Numbers | About Baker Hughes | Sustainability | People | Planet | Principles | Appendices Baker Hughes

B-25

Note 3 - CO2e intensity
Market based: MT CO2e per $ revenue
Total scope 1, scope 2 (market based) and scope 3 emissions per dollar of revenue for the year ended December 31, 2022. The
Company has established 2019 as the base year for scope 1, 2 and 3 as it best represents the most recent year of business-asusual operations prior to the COVID-19 pandemic.
2019

2022

Scope 1 per $ revenue

0.000021

0.000018

Scope 2 per $ revenue

0.000012

0.000009

Scope 3 per $ revenue

0.007896

0.011931

Total per $ revenue

0.007929

0.011958

Total revenue (millions USD)

$23,838$21,156

Note 4 - CO2e Emissions data by GHG
GHG Emissions by gas

Emissions data for all seven GHGs in metric tonnes and in tonnes of CO2e include only scope 1 and 2 emissions.
IN MT CO 2E

Scope 1
2022

Scope 2,
Location-Based Approach
Scope 2,Market-Based Approach

CO2

CH4

N2O

HFCs

PFCs

NF3

SF6

370,644

4,613

908

7

0

0

0

209,987

326

589

N/A

N/A

N/A

N/A

193,239

233

461

N/A

N/A

N/A

N/A

CO2

CH4

N2O

HFCs

PFCs

NF3

SF6

370,644

165

3

7

0

0

0

209,987

12

2

N/A

N/A

N/A

N/A

193,239

8

2

N/A

N/A

N/A

N/A

IN ABSOLUTE MT GAS

Scope 1
2022

Scope 2,
Location-Based Approach
Scope 2,Market-Based Approach

Note 5 - Emissions data on direct or biogenic CO2 emissions from biologicallysequestered carbon
There are no emissions applicable to biologically sequestered carbon (e.g., CO2 from burning biomass or biofuels).

Note 6 - Information on offsets
It is the Baker Hughes sustainability policy to exhaust all carbon emissions reduction pathways prior to starting to use offsets.
Carbon offsets are not included in our short to mid-term net-zero roadmap (See Note 2, market-based approach).

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Baker Hughes TOC| Letters | By the Numbers | About Baker Hughes | Sustainability | People | Planet | Principles | AppendicesNote 7 – Scope 3 reporting
Scope 3 reporting (MT CO2e)
2019

Upstream
Scope 3emissions

2022

NOTES

Category 1

Purchased Goods
and Services

4,602,303

5,718,784

Includes spend related to purchased goods and services,
except for capital goods (Category 2), utilities (Category 3),
logistics (Category 4), and business travel (Category 6). Spendconsidered relates to raw materials, finished & semi-finishedgoods, and services provided to the Company.

Category 2

Capital Goods

298,734

233,574

Includes emissions from the upstream production of Plant,
Property, & Equipment (PP&E) from the Company’s Fixed AssetRegistry.

Category 3

Fuel- and EnergyRelated Activities(not included in
Scope 1 or 2)

184,214136,224

Includes emissions from fuel and energy related activities notalready accounted for in scope 1 and scope 2 emissions.

Category 4

UpstreamTransportation
and Distribution

536,642

317,937

Includes domestic and international third-party owned or
operated transportation via land, sea or air purchased by Baker
Hughes.

Category 5

Waste Generated
in Operations

20,612

79,284

Includes emissions from the disposal of waste types, hazardousand non-hazardous waste, and disposal methods, such as
Recycling, Landfill, or re-use.

56,454

Includes business travel booked within and outside Baker
Hughes' third-party booking system, and out-of-pocket
business travel expenses. This includes business travel activities
such as air, rail, bus, automobiles (including employee owned
and rental cars), as well as hotel stays when employees travel.

101,404

Includes commuting emissions from active employees except
for Home Office emissions for employees who work remotely.
This includes travel by personal vehicle, public transportation, orother zero emission methods. Optional Home Office emissions
are reported under scope 2.

Category 6

Business Travel

100,624

Category 7

EmployeeCommuting

151,941

Category 8

Leased Assets

Not relevant Not relevantOver 99% of emissions from the operation of leased assets areincluded in scope 1 and 2, or scope 3 category 11.

Category 9

Transportation
and Distribution

518,908

Includes domestic and international third-party owned or
operated transportation related to Baker Hughes products, vialand, sea or air, purchased by value chain partners.

Category 10

Processing of Sold
Products

insignificant insignificant

Over 99% of Baker Hughes revenues are from finished goods.

181,576,472

Includes in-use emissions from products and services soldby Baker Hughes. These direct use-phase emissions originate
from the combustion of fuel or consumption of electricity, andleakage during the operation of sold products and services.

Category 11
Downstream
Category 1
Scope 3emissions

Use of Sold
Products

359,773244,794,528

End-of-Life
Treatment of Sold
Products

Further engagement with customers is needed to understandhow products are disposed/dispositioned. This also
Not reported Not reported
complements our efforts in 2023 to advance the circular
economy.

Category 13

Leased Assets

Excludedcategory

Category 14

Franchises

Not relevant Not relevant

Baker Hughes does not operate franchises.

Category 15

Investments

233,111616,242

188,223,561

252,414,204

Includes equity investments which are not consolidated into
Baker Hughes financial statements. Certain equity investments
are not included as the Company is limited in its ability to collectdata.

Total scope 3

Excludedcategory

Baker Hughes does not distinguish between products soldand leased and therefore accounts for leased assets within
category 11 - Use of Sold Products.

emissions

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Note 8 - Scope 3 additional disclosures
Summary of the category scope, types and sources of data used, data quality, methodology, allocation methods, andassumptions used to calculate emissions.
Description of scope 3 methodologies and data used
DESCRIPTION OF THE TYPES AND SOURCES OF DATA USED TO
CALCULATE EMISSIONS

Activity data
(primary data) direct and indirect purchasing activity inthe reporting year.
Category 1,
Purchased
goods andservices

Emissions factors(secondary data) cradle-to-gate emission factors forpurchased goods and services were obtained fromEXIOBASE3.

Percentage of emissions calculated using data obtained
from suppliers or other value chain partners

0%

Emissions factors(secondary data) emission factors from the Scope
3 Quantis Evaluator Tool (ghgprotocol.org/scope-3evaluator).

Percentage of emissions calculated using data obtained
from suppliers or other value chain partners

0%(primary data) scope 1 and scope 2 (market-based)emissions from the reporting year

The estimation uses average-data methodology, andemission factors outlined in the GHG Protocol andQuantis “Documentation of the data and calculations
to support the Greenhouse Gas Protocol Scope 3
Screening Tool”, last updated February 2021.
Emissions = (total Scope 1 and 2 emissions) x (Quantis
emission factor)

Description of the data quality of reported emissions

Good.

Percentage of emissions calculated using data obtained
from suppliers or other value chain partners

0%

Activity data

Baker Hughes TOC

Emissions = (spend by category) x (Quantis emission
factor).
Very Good

Emissions factors
Category 3, Fuel(secondary data) emission factors from the Scopeand energy
3 Quantis Evaluator Tool (ghgprotocol.org/scope-3related
evaluator)

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The calculation uses the average spend-based
methodology and emission factors outlined in the
GHG Protocol and Quantis “Documentation of thedata and calculations to support the Greenhouse
Gas Protocol Scope 3 Screening Tool”, last updated
February 2021.

Description of the data quality of reported emissions

Activity data

Category 4,
Upstreamtransportationand logistics

Emissions = (spend by UNSPSC) x (mapped EEIO
factor).

Very Good(primary data) PP&E purchasing activity in the reportingyear.

Upstream
scope 3emissions

The calculation uses the spend-based methodology.
Where spend cannot be mapped to a UNSPSC code,
emissions are estimated through extrapolation of
mapped spend.

Description of the data quality of reported emissions

Activity data

Category 2,
Capital goods

DESCRIPTION OF THE METHODOLOGIES, ALLOCATIONMETHODS, AND ASSUMPTIONS USED TO CALCULATEEMISSIONS(primary data) Details from the company’s transportation
management system including the freight spend, origin
and destination of the shipment, the mode of transport,
and weight for domestic and international movements.
Emissions factors

The calculation uses a combination of the distanceweight and spend-based methodology. Where
distance-weight data is not available, freight spend isused to extrapolate emissions.
Emissions = (emission factor by mode) x (distance of
movement x weight of shipment by mode).

(secondary data) The emission factors are from DEFRA
Conversion Factors for Company Reporting, Freighting
Goods table for each mode of transport.
Description of the data quality of reported emissions

Good.

Percentage of emissions calculated using data obtained
from suppliers or other value chain partners

0%| Letters | By the Numbers | About Baker Hughes | Sustainability | People | Planet | Principles | AppendicesActivity data
(primary data) The quantities of hazardous, nonhazardous,
recycled, and e-waste generated during operations wereobtained from the Company’s’ HSE data management
system. The data also includes the treatment methods
recycling, landfill, incineration with and without energy
recovery and others.

Category
5, Waste
generated from Emissions factors
operations(secondary data) The emission factors are from the DEFRA

Conversion Factors for Company Reporting, Waste Disposal
table.

The calculation uses the Waste-Type-Specificmethodology. Where data is unavailable (does notmeet reporting threshold of 10,000 square feet facility
or some rental facilities), activity data is extrapolated
considering region and facility type. For 2019, we backcast emissions based on 2022 waste quantities, the2019 DEFRA Conversion Factor, and 2019 revenue.
Emissions = (emission factor by waste type anddisposal method) x (amount of waste by type anddisposal method).

Description of the data quality of reported emissions

Good.

Percentage of emissions calculated using data obtained
from suppliers or other value chain partners

0%

Activity data

(primary data) Distance per mode of transportation andnumber of hotel nights Baker Hughes employees bookedin the reporting year is collected by Baker Hughes external
partners, namely our travel management partner andpreferred rental car providers.
(primary data) Distance travelled by personal use of car
for business travel as reported in Baker Hughes expense
management system.

Upstream
scope 3emissions

Emissions factors(secondary data) Emission factors for rental cars are from
EPA by car class and Global Warming Potential (GWP)
values as reported within the IPCC Fifth Assessment Report.

Category 6,
Business travel

The calculation uses the distance-based methodology
for travel, hotel stays, and spend-based methodology
for expenses.

Emissions = ∑ (distance travelled by vehicle type(vehicle-km or passenger-km) × vehicle specific(secondary data) Emission factors for hotel are from DEFRA emission factor (kg CO e/vehicle-km or kg CO e/22
GHG Conversion Factors for Company Reporting – “Hotelpassenger-km)) + ∑ (annual number of hotel nights
stay”. Where data is not available by country, an average(nights) × hotel emission factor (kg CO2e/night)) + (( ∑emission factor is applied.
(Expenses claimed for public transport) - ∑ (Expenses
covered by other reports)) x EEIO emission factor (kg(secondary data) Emission factors for air are from DEFRA’s
GHG Conversion Factors considering flight types (short haul, CO2e/$) ).
long-haul) and cabin class.
Reports used for other travel expenses include reports(secondary data) Emission factors for rail are from
DEFRA’s GHG Conversion Factors considering national andinternational rail.

from third party travel vendors.

(secondary data) Emission factors for personal cars used
for business travel are from country-specific sources. US –EPA Emission Factors Hub; India– India GHG Program; UK & all other countries – DEFRA
Conversion Factors.
(secondary data) Emission factor for public transportation
spend is from US EPA Environmentally-Extended InputOutput (USEEIO) matrices.
Description of the data quality of reported emissions

Good.

Percentage of emissions calculated using data obtained
from suppliers or other value chain partners

82%

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Activity data
(primary data) Employee count from human capitalmanagement system and direct employee commuting
data (mode, distance, frequency) taken by a company
wide survey.

Upstream Category 7,
scope 3
Employeeemissions commuting(secondary data) Estimated one-way commute miles
from U.S. DOT, Federal Highway Administration, 2010 Statusof the Nation’s Highways, Bridges, and Transit: Conditions& Performance (https://www.fhwa.dot.gov/policy/2010cpr/
execsum.cfm for 2019, and https://www.fhwa.dot.gov/
policyinformation/statistics/2020/vm1.cfm for 2021).

This calculation uses the average-data method, andassumes an average distance travelled each day,number of employees working from home, and 48
working weeks in a year with a 5-day work week.
Assumes car travel is representative of employee
commuting behaviors as other data is not available.
We aspire to improve the data quality in the future by
surveying our employee base.

(secondary data) Emissions factors from EPA GHG
Emissions Factors Hub – Table 10 Scope 3 Category 6 and 7.

Emissions = total distance travelled by vehicle typex ∑ ((# Employees - # Employees Working Remotely)
x distance travelled from work to home / day (oneway) x 2 x number of commuting days per year) OR
Emissions = Distance travelled x Emission factor per
vehicle type x frequency of commute. Only applicableto employees who responded to the survey.

Description of the data quality of reported emissions

Good.

Percentage of emissions calculated using data obtained
from suppliers or other value chain partners

0%

Emissions factors

Activity data

(secondary data) Category 4 emissions from upstream
transportation and distribution and estimated percentage
of Baker Hughes purchased shipments vs. third-party
purchased shipments, based on Incoterms weighted by
activity.

This calculation uses a combination of distance-based
and spend-based methods. Emissions are estimatedfor Category 9 by extrapolating emissions from
Category 4 based on revenue.

Description of the data quality of reported emissions

Fair

Percentage of emissions calculated using data obtained
from suppliers or other value chain partners

0%Category 9,
Downstream
transportation(secondary data) Revenue data, along with Incotermand distribution
weighting, is used to estimate emissions for Category 9.

Activity data

(Primary data) Revenue, sales, build plan data for products
and services.

Category 11,
DownUse of soldstreamproducts
scope 3emissions.

(Primary data) Product specifications and subject-matterexpert testimony.
Emissions factors(Secondary data) See GHG Emission Factors table in Note 2
above.

Baker Hughes TOC

Emissions = Sum of emissions (MT CO2e) x qty sold inreporting year (functional unit) x expected life (years) x
allocation factor.
Good.

Percentage of emissions calculated using data obtained
from suppliers or other value chain partners

0%(primary data) Revenue and industry of equity investments
which are not consolidated into the Company’s financial
statements.

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We calculate direct use-phase emissions for products
and services. Energy consumption, gas leakage,
product utilization, and estimated lifetime of products
is based on product expert knowledge and technicalcalculations.

Description of the data quality of reported emissions

Activity data

Category 15,
Investments

Emissions = (emissions Cat4) x (ratio of BH-purchasedvs. not purchased).

(Secondary data) Emission factors from the Scope
3 Quantis Evaluator Tool (ghgprotocol.org/scope-3evaluator)

This estimation uses the average-data methodology,
reporting year revenue where available, and emission
factors outlined in the GHG Protocol and Quantis“Documentation of the data and calculations to
support the Greenhouse Gas Protocol Scope 3
Screening Tool”, last updated February 2021. Certain
equity investments have zero emissions if there waszero activity in their financial information or financial
information was not available.
Emissions = ($ revenue by industry) x (Quantis
emission factor).

Description of the data quality of reported emissions

Fair

Percentage of emissions calculated using data obtained
from suppliers or other value chain partners

0%| Letters | By the Numbers | About Baker Hughes | Sustainability | People | Planet | Principles | AppendicesStatement and Notes on Waste
Statement on Waste
MetricCriteria

Page # KPI

Methodology• Total waste generated.
• Hazardous waste generated.
Waste generated

GRI 306-3 p. 71• Non-hazardous waste
generated.
• E-waste generated.

Total waste generated = ∑ Hazardous waste generated, nonhazardous waste generated, e-waste waste generated, metals
waste generated.

• Metal waste generated.
• All• Total waste recycled.
Waste diverted
from disposal bywaste type

• Hazardous waste recycled.
GRI 306-4 p. 71• Non-hazardous waste recycled.
• E-waste recycled.
• Metals recycled.
• Hazardous waste diverted from
disposal by recovery operation.

Waste diverted
from disposal
by recovery
operation

GRI 306-4 p. 71• Non-hazardous waste diverted
from disposal by recovery
operation.
• E-waste diverted from disposal
by recovery operation.
• Metal waste diverted from
disposal by recovery operation.

Total waste diverted from disposal from Baker Hughes operations
through recycling.
Total waste diverted from disposal = ∑ Hazardous waste diverted
from disposal, non-hazardous waste diverted from disposal,
e-waste diverted from disposal, metals waste diverted from
disposal.
Total waste diverted from disposal from Baker Hughes operations.
Total waste diverted from disposal = ∑ Hazardous waste diverted
from disposal, non-hazardous waste diverted from disposal,
e-waste diverted from disposal, metals waste diverted from
disposal.
Each respective component of this calculation is broken downin categories of recovery operations; preparation of reuse,reclamation, recycling, and other recovery operations.

• Total waste directed to disposal.
Waste directed todisposal by waste GRI 306-5 p. 71
type• Hazardous waste directed todisposal.

Total weight of waste directed to disposal in metric tons by waste
type.

• Non-hazardous waste directed
to disposal.

Total waste directed to disposal = ∑ Hazardous waste directed
to disposal, non-hazardous waste directed to disposal, e-waste
directed to disposal, metal waste directed to disposal.

• E-waste directed to disposal.
• Metal waste directed to disposal.
• Hazardous waste disposed bydisposal operation.
Waste directed
to disposal
by disposal
operation

GRI 306-5 p. 71• Non-hazardous waste disposedby disposal operation.
• E-waste disposed by disposal
operation.
• Metal waste disposed bydisposal operation.

Waste prevented

GRI 306-4 p. 71• Total waste that was prevented
from waste disposal by
converting into products.

Total waste directed to disposal from Baker Hughes operations.
Total waste directed to disposal = ∑ Hazardous waste directed
to disposal, non-hazardous waste directed to disposal, e-waste
directed to disposal, metals waste directed to disposal.
Each respective component of this calculation is broken downin categories of disposal operation categories: Incineration (withenergy recovery), Incineration (without energy recovery), Landfilling,
and other disposal operations.
The sum of total waste prevented equals the volume of material
that was converted from a waste to a product.

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Note 1 - Basis of presentation
The Statement and Notes on Waste have been prepared for the year from January 1, 2022, to December 31, 2022, corresponding
to the Company’s fiscal year. The Company prepared the Statement and Notes on Waste in accordance with select Global
Reporting Initiative’s disclosures: GRI 306 Waste 2020. Key terms used are defined in the GRI Standards Glossary.

Note 2 – Reporting boundary
The Company presents its waste volume from operations over which it, or one of its subsidiaries, has the full authority tointroduce and implement its operating policies. We exclude minority owned joint ventures not operated by the Company.

Note 3 – Use of estimates and estimation uncertainties
The Company bases its estimates and methodologies on historical experience, available information, and various otherassumptions that it believes to be reasonable. Waste volume presented are subject to measurement uncertainties resulting
from limitations inherent in the nature and the methods used for determining such data. The selection of different but
acceptable measurement techniques can result in materially different measurements. The precision of different measurement
techniques may also vary.

Note 4 - Methodology of Waste Metrics
The volume (metric ton) and waste type are obtained from third party vendors using the Company’s HSE data management
system. Where data from third party vendors are not available for a certain location, the Company estimates the volume by
extrapolating the square footage of the location and the actual volume for the waste type of a similar location.

Note 5 - Glossary of Terms
TERM

DEFINITION

Hazardous waste

Waste disposed that possesses any of the characteristics contained in Annex III of the Basel Convention, or that is
considered to be hazardous by national legislation.

Non-hazardous waste

All other waste not classified as hazardous, e-waste or metal waste.

Electronic waste

Loosely discarded, surplus, obsolete, broken, electrical or electronic devices.

(e-waste)i.e., computers, copiers, fax machines, etc.

Metal waste

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Baker Hughes TOC

Metals are materials that are hard, lustrous, malleable, ductile, and sonorous.
i.e., iron, copper, aluminum, calcium, magnesium, etc.

| Letters | By the Numbers | About Baker Hughes | Sustainability | People | Planet | Principles | AppendicesLegal disclosures
We report our sustainability performance annually. This report was developed for the reporting period of January 1, 2022
to December 31, 2022. This report includes several restatements of data from prior years’ reports in accordance with theGreenhouse Gas Protocol: A Corporate Accounting and Reporting Standard, Revised Edition. Those restatements and thereasons for them are identified as they appear. Our organizational boundary is based on an operational control approach. We
report performance from the operation of our wholly owned companies and the subsidiaries over which we have operational
control and exclude non-operated, minority-owned joint ventures. Our report is reviewed prior to publication by our Governanceand Corporate Responsibility Committee as part of their regular review of sustainability and corporate responsibility topics,
which is then approved by the full Board of Directors.
Unless otherwise specifically stated, this report covers Baker Hughes’s performance in 2022. Incremental information regarding
our sustainability report has been included in our 2022 Annual Report on Form 10-K and our 2022 Proxy Statement, which can befound at https://investors.bakerhughes.com/investor-relations.
The goals and projects described in this report are aspirational; as such, no guarantees or promises are made that thesegoals and projects will be met or successfully executed. Furthermore, data, statistics, and metrics included in this report are
not prepared in accordance with generally accepted accounting principles (GAAP), continue to evolve and may be basedon assumptions believed to be reasonable at the time of preparation, but should not be considered guarantees and may besubject to future revision. This report uses certain terms including those that GRI or others refer to as “material” to reflect theissues or priorities of Baker Hughes and its stakeholders. Used in this context, however, these terms are distinct from, and should
not be confused with, the terms “material” and “materiality” as defined by or construed in accordance with securities, or other,laws or as used in the context of financial statements and reporting.
Statements of future events or conditions in this report, including those that concern future circumstances and results andother statements that are not historical facts and are sometimes identified by the words “may,” “will,” “should,” “potential,”“intend,” “expect,” “endeavor,” “seek,” “anticipate,” “estimate,” “overestimate,” “underestimate,” “believe,” “could,” “project,” “predict,”“continue,” “target” or other similar words or expressions, are forward-looking statements. Forward-looking statements are based
upon current plans, data, estimates and expectations that are subject to risks, uncertainties, and assumptions.
Should one or more of these forward looking statements, risks or uncertainties materialize, or should underlying assumptions
prove incorrect, actual results may vary materially from those indicated or anticipated by such forward-looking statements.
The inclusion of such statements should not be regarded as a representation that such plans, estimates or expectations will
be achieved. Important factors that could cause actual results to differ materially from such plans, estimates or expectations
include, among others: changes in demand for oil and natural gas, as well as integrated products and services; expenditure
reductions; changes in economic, political, and business conditions; changes in laws, regulations, other requirements or theenforcement or interpretation thereof including those related to oil and gas exploration and production, natural resources
and fossil fuels management and climate-related initiatives; technological developments of, and substantial investments in,alternative energy; success of our CCUS and other initiatives; inability to reduce environmental impact; involvement in litigation;
inability to satisfy service, equipment and power purchase agreements; inability to obtain, maintain, protect or enforce ourintellectual property rights; remedial or non-compliance actions; the financial and operating conditions of our supply chain;
defects in risk management; losses from, or the inability to identify and mitigate, risks inherent in operating in the global energy
industry; high cost or unavailability of infrastructure, materials, equipment, supplies and/or personnel; potential disruption ofoperations due to war, accidents, weather and seasonal factors, political events, civil unrest, cybersecurity, geopolitical, or
terrorism threats, pandemics, economic downturns or other causes beyond our control; and the risk factors in the “Risk Factors”
section of our 2022 Annual Report on Form 10-K and those set forth from time-to-time in other filings by the Company with the
U.S. Securities and Exchange Commission (SEC), available through our website or through the SEC’s Electronic Data Gatheringand Analysis Retrieval (EDGAR) system at http://www.sec.gov.

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