Baker Hughes Company (BKR) — ESG & Values Scores

Environment story

Baker Hughes scores 58/100 on Environmental criteria. The company has disclosed a 29.3% reduction in Scope 1 & 2 emissions (2025 proxy) but does not publicly disclose absolute Scope 3 emissions or a credible net-zero target year in available documents, triggering -15 penalties. The 10K Risk Factors extensively emphasize energy transition uncertainty and potential slowdown in clean energy demand, suggesting operational reliance on fossil-fuel services without sufficient decarbonization pathway. The company invests in CCUS, geothermal, and hydrogen technologies (+5 for innovation initiatives), but these represent emerging segments rather than core operational transformation. No material toxic waste or localized water controversies are disclosed in the reviewed documents. Greenwashing concern: Scope 3 emissions exposure (product-use emissions from oil & gas customers) is substantial and undisclosed; the company's net-zero narrative focuses on direct operations while customer emissions dwarf internal footprint. Deduct -15 for suspected greenwashing via omission of supply-chain emissions disclosure.

Criticisms on file

Undisclosed Scope 3 Emissions and Product-Use Carbon Footprint
Source: Baker Hughes 10-K Risk Factors, Item 1A: 'The potential slowdown and shift in the energy transition could have an adverse effect on the demand for our clean energy technologies and services.' Company acknowledges substantial exposure to oil & gas customer operations but does not quantify Scope 3 emissions.
No Disclosed Net-Zero Target Year
Source: Baker Hughes 2025 10-K and Proxy Statement: Neither document specifies a target net-zero year or absolute emissions reduction commitment; 29.3% reduction in Scope 1&2 is disclosed but without baseline year or absolute tonnes.
Regulatory Uncertainty and Potential Rollback of Climate Rules
Source: Baker Hughes 10-K Risk Factors, Item 1A: 'In 2024, the EPA released a final rule expanding the scope of the reporting rule; however, the current administration has taken steps to reconsider these rules. In March 2025, the EPA released a final rule to extend 2025 reporting deadlines and in September 2025, proposed a rulemaking to remove and/or suspend program obligations.' Company explicitly references potential weakening of GHG reporting and regulatory obligations.

Disclosed initiatives

Clean Energy Technology Portfolio Expansion

Baker Hughes is expanding into geothermal, carbon capture & utilization and storage (CCUS), hydrogen energy, and integrated solutions. R&D spend: $600M in 2025; >1,400 patents granted worldwide.

Emerging technologies represent future revenue streams but do not yet offset core oil & gas equipment and services business.
Emissions Reduction Commitment

29.3% reduction in Scope 1 & 2 emissions disclosed in 2025 proxy (baseline year not stated).

Positive directional trend; lacks specificity on measurement methodology, baseline, and absolute tonnes.

Social story

Baker Hughes scores 75/100 on Social criteria. CEO-to-median-worker pay ratio is not disclosed in available documents but proxy compensation disclosures suggest significant executive pay; without exact ratio, -0 applied pending verification (would deduct -15 if >200:1). No documented union-suppression activities or major strikes in the last 24 months are disclosed; however, the company's Risk Factors acknowledge global workforce challenges, recruitment/retention risks, and organizational restructuring, suggesting potential labor friction (-0 applied; no active NLRB complaints identified). Leadership diversity metrics are not fully disclosed in the proxy excerpt provided, but the Board includes multiple female directors (Cynthia B. Carroll, Shirley A. Edwards, Ilham Kadri) and one Arab director (Abdulaziz M. Al Gudaimi), suggesting ~40% board-level gender/ethnic diversity (+0 penalty applied). Supply-chain ethics: No specific human-rights hazards (e.g., cobalt, lithium mining) are documented in the reviewed filings; however, the company does not disclose a formal supply-chain audit program or conflict-minerals policy in the excerpts reviewed. The 10K Risk Factors emphasize geopolitical risks, national oil company operations, and local content requirements, but no slave labor or forced-labor controversies are mentioned. Overall score reflects absence of major controversies but also lack of proactive transparency on pay equity and supply-chain ethics.

Criticisms on file

Non-Disclosure of CEO-to-Median-Worker Pay Ratio
Source: Baker Hughes 2026 Proxy Statement and 2025 10-K: CEO pay is disclosed in proxy (Section 'Summary Compensation Table'), but median-worker pay is not disclosed, preventing calculation of ratio.
Workforce Restructuring and Retention Risks
Source: Baker Hughes 10-K Risk Factors, Item 1A: 'Difficulties in hiring or retaining key employees, or the unexpected loss of experienced employees resulting in the depletion of our institutional knowledge base, could have an adverse impact on our business performance, reputation, financial condition, or results of operations.' Also: 'From time to time, we will embark upon restructuring activities...Restructuring activities may be more costly than anticipated.'
Lack of Disclosed Supply-Chain Human-Rights Audit
Source: Baker Hughes 10K and Proxy: No formal conflict-minerals policy, forced-labor assessment, or supply-chain audit program is disclosed in reviewed documents; company acknowledges 'national oil companies' and 'local content requirements' in Risk Factors but does not address labor rights in supply chain.

Disclosed initiatives

Board Diversity and Refreshment

Over the past five years, four independent directors have been added; Board includes female and ethnically diverse members (Cynthia B. Carroll, Shirley A. Edwards, Ilham Kadri, Abdulaziz M. Al Gudaimi).

Demonstrates commitment to Board-level diversity; workforce-level diversity metrics not disclosed.
Human Capital and Compensation Committee Oversight

Committee oversees talent planning, culture, training, development, retention, succession planning, and compensation practices; receives regular updates from management.

Governance structure in place; effectiveness cannot be assessed without disclosed diversity metrics and pay equity data.
Cybersecurity Training and Awareness Programs

Cybersecurity and privacy training integrated into annual employee training; mock phishing campaigns and informational articles deployed.

Supports employee safety and organizational resilience; not a direct social benefit metric.

Governance story

Baker Hughes scores 72/100 on Governance criteria. Board independence is estimated at 80%+ (9 directors; Lead Independent Director John G. Rice; at least 8 appear independent based on proxy disclosures), avoiding the -15 penalty for <75% independence. Share structure is single-class common stock with no dual-class voting rights disclosed, avoiding the -20 penalty. Lobbying expenditures are not disclosed in available documents, but the 10K Risk Factors extensively reference political risk, tariff/trade policy advocacy, and regulatory engagement, suggesting active lobbying; -0 applied pending disclosure of dollar amounts (would deduct up to -15 if climate-deregulation targeting is confirmed). No major antitrust, consumer-safety, or financial-fraud proceedings are disclosed in the reviewed 10K or Proxy; SEC consent decrees are not mentioned. The company does not disclose active litigation to block climate shareholder proposals (-0 applied; no such evidence in reviewed filings). Board-level ESG oversight is robust, with Governance & Corporate Responsibility Committee overseeing sustainability, HSE, and regulatory matters. Risk Oversight framework is comprehensive. Overall governance structure appears sound, though lobbying transparency and political contributions are under-disclosed.

Criticisms on file

Non-Disclosure of Annual Lobbying Expenditures
Source: Baker Hughes 10K Risk Factors and Proxy Statement: Company references 'lobbying expenditures' and 'political contributions' in governance oversight sections but does not disclose annual dollar amounts or specific policy positions targeted for influence.
Regulatory Advocacy on Climate and Trade Policy
Source: Baker Hughes 10-K Risk Factors, Item 1A: Company explicitly references 'changes in U.S. administrative policy, including increases in tariffs...Recent changes in U.S. administrative policy have led to significant increases in tariffs...' and notes 'ongoing focus by governments and our customers, investors and other stakeholders on climate change, sustainability, and energy transition matters.' Risk Factors also note: 'the pace and direction of the transition to a lower-carbon economy has become increasingly uncertain.' This suggests company engagement with regulatory bodies on energy policy, but specific lobbying targets are not disclosed.
Geopolitical Risk Exposure and Regulatory Uncertainty
Source: Baker Hughes 10-K Risk Factors, Item 1A: Company extensively discusses geopolitical risks, sanctions exposure, and operational constraints in countries subject to embargoes (e.g., Russia, Venezuela, Iran). Company notes: 'Geopolitical and terrorism threats continue to grow in a number of key countries where we currently or may in the future do business.' This exposure creates reputational risk if company operations inadvertently support sanctioned regimes or conflict zones.

Disclosed initiatives

Board Risk Oversight Framework

Board oversees operational, financial, strategic, and reputational risks through committee structure (Audit, Finance, Governance & Corporate Responsibility, Human Capital and Compensation). Top risks reviewed at each regularly scheduled meeting.

Demonstrates proactive risk governance aligned with best practices.
Governance & Corporate Responsibility Committee Oversight

Committee oversees HSE, sustainability, regulatory environment, public policy and political activities, geopolitical risk, corporate sustainability reporting, and Board composition/governance.

Dedicated governance oversight of ESG matters; Board transparency on sustainability strategy.
CEO and Senior Management Succession Planning

Board prioritizes CEO and management succession planning; regular assessment of talent and organizational readiness.

Mitigates key-person risk; supports continuity of strategy and governance.
Shareholder Engagement Program

Independent directors and management maintain regular dialogue with investors regarding strategy, capital allocation, sustainability, and executive compensation (2025 proxy disclosed).

Enhances governance responsiveness and stakeholder alignment.

These are Missionomics' own editorial scores — directional signals built from disclosed facts under a published method, not certifications or definitive ratings of Baker Hughes Company. Coverage and confidence vary by data point, and figures can lag real-world changes. Read the full Methodology for sourcing, scoring, and correction details — or open Baker Hughes Company in the app for interactive charts and portfolio building.

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