ESG Talk with Allison Anderson from Baker Hughes

Welcome to ESG Talk, where we delve into the insights and advice from leaders in Environment, Social, and Governance (ESG). In this episode, our host, Manny McReynolds, is joined by Allison Anderson, the Chief Sustainability Officer at Baker Hughes. Allison leads the company's efforts in the energy transition, helping Baker Hughes to be recognized on Newsweek's 2023 Most Trustworthy Companies in America list.

Key Points Discussed

• Transparency and Trust in Sustainability: Allison emphasizes the importance of transparency and trust throughout the journey of achieving sustainability goals. Recognizing the challenges and the continuous efforts required to maintain a high level of transparency is crucial.

• Setting Ambitious ESG Goals: Baker Hughes has set a net-zero target by 2050 with an interim target of a 50% emissions reduction by 2030. Achieving these goals requires a robust framework for sustainability reporting and a commitment to being best in class in ESG reporting.

• The Journey to Net Zero: Allison shares insights into Baker Hughes' journey towards its net-zero goal, highlighting the challenges of data collection, establishing data governance, and the complexity of accounting for all emissions. A multi-year journey has been essential to ensure accurate, decision-useful data for strategy formulation.

• Engagement with Stakeholders: Strengthening relationships with stakeholders through transparent reporting and demonstrating the company's commitment to its sustainability goals is a key advantage. This engagement builds confidence among investors and partners.

• Navigating the Regulatory Landscape: With sustainability regulations becoming mandatory globally, companies must prepare to meet different standards across countries. Allison discusses the European Union's reporting directive and its implications for multinational companies, urging the importance of readiness for compliance.

• The Importance of Independent Verification: Highlighting the necessity of third-party verification to ensure data fidelity, accuracy, and governance, Allison points out that this will be increasingly important as regulations tighten.

Closing Thoughts

• Board Engagement in Sustainability: Emphasizing the value of engaging with and having the support of the company's board in sustainability initiatives. Trusting in the board's involvement can be a source of strength and can help mitigate risks.

Allison Anderson's insights offer a comprehensive view of the commitment, challenges, and strategic approaches needed for effective ESG reporting and achieving sustainability goals.