Allyson Anderson Book, Chief Sustainability Officer at Baker Hughes, discusses the company's transparency efforts and the significance of obtaining quality data for decision-making. They explore the advantages of ESG reporting in strengthening stakeholder relationships and meeting net zero goals, while also discussing challenges such as building human capital. The importance of board engagement and the changing landscape of board committees embracing ESG are also highlighted.
Baker Hughes aims for a 50% reduction in emissions by 2030 and net zero by 2050, focusing on improving data accuracy and completeness to achieve these targets.
Transparency and trust in sustainability reporting build confidence among stakeholders, helping Baker Hughes demonstrate their commitment to their net zero goals.
Deep dives
Net Zero and Emissions Reduction Goals
Baker Hughes, under the leadership of Chief Sustainability Officer Allison Anderson-Book, has set ambitious net zero and emissions reduction goals. They aim for a 50% reduction in emissions by 2030 and net zero by 2050. To achieve these targets, Baker Hughes started by assessing their current efforts and data collection. They discovered gaps in data governance and fidelity, which led them to focus on improving data accuracy and completeness. This multi-year journey towards accurate emissions reporting has laid a strong foundation for their sustainability strategy.
The Importance of Transparency and Trust
Baker Hughes recognizes the significance of transparency and trust in their sustainability journey. They have worked towards being transparent in their reporting and data collection, resulting in recognition as one of Newsweek's Most Trustworthy Companies in America. The company believes that this transparency builds confidence among stakeholders, such as investors and regulators. Baker Hughes understands the importance of demonstrating their commitment to their net zero goals internally to ensure they can deliver on their promises externally.
Navigating the Ever-Changing Regulatory Landscape
As a multinational company operating in various countries, Baker Hughes faces the challenge of complying with different regulations. While initially focused on SEC regulations, they now grapple with EU regulations, specifically the reported directive. This directive imposes numerous metrics and reporting requirements, creating a significant challenge for companies. Baker Hughes is striving to stay ahead and comply with these regulations, as they recognize the importance of standardization and independent verification in sustainability reporting. They emphasize the need for companies to start early and actively engage with partners and stakeholders to navigate this evolving regulatory landscape.
Allyson Anderson Book, chief sustainability officer at Baker Hughes, joins Mandi McReynolds to share how her team has transformed the company’s annual sustainability report and advocated for transparency over perfection. They explore how acknowledging shortcomings, engaging the board, and navigating regulatory change contribute to ESG.
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