Baker Hughes: Sustainable Growth with Digital Transformation
Baker Hughes has entered 2025 with strong momentum, demonstrating that sustainability and financial success can go hand in hand.
The global energy technology company has released its Corporate Sustainability Report, highlighting its commitments and progress towards sustainable energy.
Reporting record-setting performance in the first quarter, the company is deepening its commitment to sustainable energy solutions and advancing the decarbonisation of critical industries.
Deeper integration and accountability
The 2024 Corporate Sustainability Report highlights Baker Hughes' multi-faceted approach to embedding sustainability into its core operations.
Baker Hughes achieved a 29.3% reduction in absolute Scope 1 and 2 emissions and a 39.5% reduction in emissions intensity compared to its 2019 base year.
The company remains committed to achieving net zero Scope 1 and 2 emissions by 2050, with an interim 50% reduction target by 2030.
Baker Hughes published its first full Scope 3 emissions inventory in 2024, covering emissions across the entire value chain.
Focus areas include:
- Supply chain management
- Transport
- Waste reduction
- Development of low-carbon products.
In 2024, the company reduced total waste generated by 13.8% from its 2022 baseline and expanded initiatives to promote asset reuse and waste diversion from landfills.
Along with landfill avoidance, all operational sites have been assessed using the Integrated Biodiversity Assessment Tool, with risk management programmes implemented for high-risk locations.
More than 650 employees participated in the Carbon Out programme, identifying projects that contribute to further emissions reduction
Transformation and innovation
The company’s transformation is delivering structural margin improvements despite economic uncertainty.
Baker Hughes’ Industrial and Energy Technology (IET) segment booked US$3.2bn of orders including its first awards for data centre power solutions, totalling more than 350 MW.
This expands the company's footprint in high-growth, energy-intensive sectors, while maintaining its strategic focus on lower-carbon solutions such as LNG, floating production storage and offloading (FPSO) and critical gas infrastructure projects.
In its Oilfield Services and Equipment (OFSE) segment, Baker Hughes demonstrated resilience, achieving year-on-year margin improvement even amid a revenue decline.
"The operational transformation and streamlining efforts have created a solid foundation to optimise margins and enhance returns, even in a challenging environment," comments Lorenzo Simonelli, Baker Hughes Chairman and CEO.
"Although our outlook is tempered by broader macro and trade policy uncertainty, we remain confident in our strategy and the resilience of our portfolio," Lorenzo added.
Accelerating climate technology
Baker Hughes continues to prioritise technologies that advance the energy transition.
The launch of CarbonEdge, a new digital solution for carbon capture, utilisation and storage (CCUS), represents a major step forward.
CarbonEdge delivers real-time data and alerts across the entire CCUS infrastructure lifecycle, from carbon capture and compression through to pipeline transportation and subsurface storage.
"CCUS technology solutions are essential for driving decarbonisation of the energy and industrial sectors on our path to solving climate change," says Lorenzo.
"With the launch of CarbonEdge, we not only expand our portfolio of digital solutions to support new energies and empower our customers’ ability to mitigate risk while enhancing operational efficiency, but also take a bold step toward a future with more sustainable energy development."
Baker Hughes is now the only provider offering advanced digital monitoring and risk management technologies alongside deep engineering expertise across the surface and subsurface CCUS value chain.
Sustainable collaborations
Further strengthening its CCUS leadership, Baker Hughes has signed a long-term agreement with Wabash Valley Resources (WVR), a pioneer in low-carbon ammonia production.
WVR will use CarbonEdge to monitor and verify the volumes of CO₂ captured, transported and sequestered at its Indiana facility.
This collaboration will also support further enhancements to CarbonEdge to meet the evolving needs of industrial-scale CCUS projects.
This partnership highlights the rapid commercialisation of Baker Hughes' CCUS solutions and their critical role in decarbonising not just energy production, but also hard-to-abate industrial sectors.
Through initiatives like CarbonEdge and its Climate Technology Solutions portfolio, Baker Hughes is driving innovation at the intersection of operational performance and environmental stewardship.
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