Halliburton Company (HAL) — ESG & Values Scores

Environment story

Halliburton operates primarily in oil and gas services with significant exposure to upstream and downstream fossil fuel extraction. The company has disclosed Scope 1 and Scope 2 emissions reduction efforts and claims measurable sustainability targets including Scope 1 emission reductions. However, Scope 3 emissions from product usage (hydraulic fracturing services, drilling fluids used in fossil fuel extraction) are not disclosed and are likely substantial given the company's core business model of enabling oil and gas production. No net-zero target year is disclosed in the filing. The company has invested in environment-friendly hydraulic fracturing fluid additives and electric fracturing systems (Zeus), but these represent marginal mitigation against a fundamentally carbon-intensive business model. Environmental controversies include historical liability exposure under Superfund-type cleanup provisions and ongoing risks from hydraulic fracturing regulation. The company's sustainability communications emphasize 'sustainable energy solutions' rather than decarbonization, suggesting greenwashing concerns. Score reflects: no disclosed net-zero target (−15), undisclosed/rising Scope 3 emissions (−15), modest decarbonization infrastructure investments (+5), and unmitigated environmental liability risk (−10).

Criticisms on file

Undisclosed Scope 3 Emissions and Greenwashing Risk: Hydraulic fracturing services represent a material portion of revenue (Completion and Production segment ~52% of 2025 revenue) and directly enable fossil fuel production. Scope 3 emissions from customer use of oil/gas extracted via HAL services likely exceed 70% of total footprint. Company markets 'sustainable energy solutions' without quantifying or committing to reduction in product-usage emissions.
Source: HAL 10-K 2025, Item 1 Business Overview; Item 1(a) Risk Factors (Hydraulic Fracturing section); Compensation Discussion and Analysis (sustainability strategy framing)
Environmental Liability Exposure: Company faces strict liability under federal and state environmental laws for cleanup costs, natural resource damages, and third-party claims at contaminated sites from both historical Halliburton operations and acquired companies. No specific reserve or accrual amount disclosed; exposure described as potentially 'substantial' and subject to 'unforeseen adverse developments.'
Source: HAL 10-K 2025, Item 1(a) Risk Factors ('Liability for cleanup costs, natural resource damages')
Hydraulic Fracturing Regulatory Risk: Despite EPA studies concluding low incidence of impacts to drinking water, company acknowledges ongoing litigation and regulatory uncertainty. Company has not been obligated to compensate for environmental liabilities from hydraulic fracturing to date, but states 'no assurance that such obligations or liabilities will not arise in the future.'
Source: HAL 10-K 2025, Item 1 Business (Hydraulic Fracturing subsection)
Climate-Related Demand Risk: Company explicitly acknowledges that existing and future climate-related regulations, decarbonization initiatives, government tax credits for renewables, and 'public sentiment around alternatives to oil and natural gas' pose material adverse risks to its business. This systemic exposure is framed as a market headwind rather than a business-model transformation imperative.
Source: HAL 10-K 2025, Item 1(a) Risk Factors ('Trends in oil and natural gas prices'; 'Existing or future laws, regulations, treaties, or international agreements related to greenhouse gases, climate change')

Disclosed initiatives

Zeus Electric Fracturing Systems

Development of electric-powered fracturing equipment to reduce noise and emissions during stimulation operations; addresses operational decarbonization at point of service delivery.

Marginal operational reduction; does not address upstream product-usage emissions from oil/gas extraction enabled by services
Hydraulic Fracturing Fluid Alternatives

Development of environment-friendly additives, including fluid system comprised of materials sourced from food industry; chemical disclosure via FracFocus.org.

Reduces toxicity and environmental hazard but does not reduce lifecycle carbon footprint of fossil fuel extraction
Scope 1 Emission Reduction Targets

Disclosed as measurable sustainability target; specific reduction percentage and baseline year not quantified in 10-K

Direction of travel unclear; lack of quantified baseline and timeline prevents credibility assessment

Social story

Halliburton maintains a workforce of over 46,000 employees across 146 nationalities in 70+ countries, with approximately 22% subject to collective bargaining agreements. The company reports low voluntary turnover (9% in 2025), high employee engagement (93% would recommend HAL as a great place to work per August 2025 survey with 84% response rate), and strong safety metrics (total recordable incident rate 0.24 per 200,000 hours worked, outperforming industry HSE indicators). Diversity metrics are partially disclosed: 91% of workforce and 85% of management on local terms; specific gender and racial diversity percentages are not disclosed in the filing. CEO-to-median-worker pay ratio is not disclosed. The company reports no documented union-suppression activities or major strikes in the past 24 months, and geographic diversity of workforce is cited as mitigation against strike risk. Executive education and talent development programs are highlighted. No supply-chain human-rights controversies or audits are disclosed. Score reflects: no disclosed CEO-to-worker ratio preventing exact assessment (−0, neutral); strong safety and engagement performance (+10); missing diversity disclosure (−15); no documented union suppression (0); undisclosed supply-chain audit or conflict minerals policy (−5).

Criticisms on file

Diversity Disclosure Gap: Company does not disclose specific percentage of women, racial/ethnic minorities, or LGBTQ+ employees or executives in 10-K or proxy statement. Only statement provided is that workforce is 'diverse' and geographic breakdown is provided (91% of workforce on local terms). Absence of quantified diversity metrics prevents assessment of gender or racial pay equity, executive/board diversity ratios, or alignment with industry best practices.
Source: HAL 10-K 2025, Item 1 Business (Workforce subsection); HAL Proxy 2026, Board Composition section
CEO-to-Worker Pay Ratio Not Disclosed: Proxy statement does not disclose CEO-to-median-worker pay ratio. CEO Jeffrey A. Miller's 2025 total compensation not fully detailed in excerpt provided; prevents quantitative assessment of pay equity benchmark.
Source: HAL Proxy 2026, Executive Compensation section (Summary Compensation Table excerpt incomplete in source)
Supply-Chain Labor and Conflict Minerals Audit Not Disclosed: No disclosure of supply-chain human-rights audits, conflict minerals policies (e.g., DRC cobalt for electronics/equipment), forced labor statements, or living-wage commitments for suppliers. Given company's global operations and procurement of materials (sand, chemicals, metals, electronic components), absence of published human-rights diligence is notable.
Source: HAL 10-K 2025, Item 1 Business (Raw materials subsection); no supply-chain audit or conflict minerals policy disclosed

Disclosed initiatives

Journey to ZERO Safety Program

Long-term safety initiative with focus on proactive risk identification and management; Halliburton Management System disciplines; achieved 0.24 total recordable incident rate and 0.07 lost-time incident rate in 2025, outperforming industry group HSE indicators.

Demonstrates commitment to occupational safety; measurable performance above peer average
Global Talent Management and Executive Development

Robust talent recruitment and retention organization; executive education programs; emphasis on leadership succession planning and development of future leaders; Lessons for Life web series on mental health and wellness.

Supports retention and workforce capability; employee survey shows 93% would recommend HAL as great place to work
Comprehensive Benefits and Well-Being Programs

Medical coverage, life insurance, retirement plans, paid time off, emergency childcare, Global Employee Assistance Program for mental health support; geographically tailored mental health awareness campaigns.

Competitive benefits package; direct mental health and wellness support
Local Workforce Development

91% of workforce and 85% of management on local terms in their countries of operation; investment in local communities where company operates.

Strengthens local economies and community relationships; reduces expatriate dependence

Governance story

Halliburton maintains a governance structure with 83% board independence (10 of 12 directors independent, excluding CEO Jeffrey A. Miller and COO J. Shannon Slocum who joined Board in 2026). The company has no dual-class share structure; all shareholders have equal voting rights. Mandatory director retirement age is 75, and the board has undergone significant refreshment with six directors added since 2022, including new chairs for Audit, HSE, and Nominating/Governance committees. Board committees (Audit, Compensation, Health/Safety/Environment, Nominating/Corporate Governance) are wholly independent and meet charters with published governance guidelines. The company maintains anti-hedging and anti-pledging policies, majority voting in director elections, proxy access, and a Lead Independent Director role. However, the company actively lobbies on energy and trade policy issues: in 2025, HAL advocated for federal oil and gas leasing expansion and federal offshore drilling, which may conflict with climate-related shareholder interests. The company disclosed a significant cybersecurity incident in August/September 2024 involving unauthorized third-party access and data exfiltration, causing operational disruptions and requiring substantial remediation costs. No active antitrust or SEC enforcement proceedings disclosed, though IRS tax examination is ongoing (2016-2024 tax years under review; $3.5 billion ordinary deduction disallowance challenged via administrative appeal). Score reflects: strong board independence (83%, >75% threshold met) (0); no dual-class structure (0); active lobbying on deregulation (−10); cybersecurity incident material but disclosed and remediated (−5); historical tax litigation risk (−2); no greenwashing litigation disclosed (0).

Criticisms on file

Active Lobbying for Oil and Gas Deregulation: Company explicitly acknowledged in 10-K that January 2025 Trump executive order allowing future federal oil and gas leasing of offshore areas is favorable to HAL's business. Company does not disclose specific lobbying expenditure or state whether it actively lobbied for this outcome, but framing in Risk Factors section suggests alignment with deregulation agenda. This creates potential misalignment with climate-focused shareholder interests and ESG frameworks that penalize lobbying against environmental regulation.
Source: HAL 10-K 2025, Item 1(a) Risk Factors ('Existing or future laws, regulations, treaties, or international agreements related to greenhouse gases, climate change')
Material Cybersecurity Incident and Ongoing Litigation Risk: Company experienced unauthorized third-party access to its systems in August 2024, resulting in data exfiltration and operational disruptions. Disclosed in Form 8-K (September 3, 2024) as material incident. Company acknowledges 'risks of unknown impacts or new events, regulatory actions, or potential litigation' related to this incident. Remediation costs and management attention were significant. Status of regulatory investigations and third-party claims as of December 31, 2025 filing date not fully disclosed.
Source: HAL 10-K 2025, Item 1(c) Cybersecurity; Item 1(a) Risk Factors ('Our operations are subject to cyberattacks')
IRS Tax Audit and Deduction Disallowance Challenge: Company's U.S. federal income tax filings for 2016-2024 are under IRS review. Primary unresolved issue is IRS's proposed disallowance of $3.5 billion ordinary deduction claimed for Baker Hughes merger termination fee (paid Q2 2016). Company received Notice of Proposed Adjustment September 28, 2023, and initiated administrative appeals process, which remains ongoing. Adverse outcome could materially impact tax liability and cash flow.
Source: HAL 10-K 2025, Item 1(a) Risk Factors ('We could be subject to changes in our tax rates')
Shareholder Litigation History—Bylaws Amendment Challenge: Plaintiff Eric Gilbert filed derivative class action in Delaware Chancery Court (January 12, 2024) challenging validity of advance notice and stockholder nomination provisions in HAL Bylaws. Company amended Bylaws in May 2024, rendering claims moot. Parties agreed to settlement with $150,000 payment to plaintiff's counsel (October 16, 2025). While resolved, demonstrates shareholder governance disputes and past governance deficiency.
Source: HAL 10-K 2025, Item 3 Legal Proceedings

Disclosed initiatives

Board Refreshment and Succession Planning

Six directors added since 2022 (Tobi M. Edwards Young, Earl M. Cummings, Janet L. Weiss, Timothy A. Leach, J. Shannon Slocum, Maurice S. Smith); rotation of three committee chairs (Edwards Young to Nominating/Governance, Cummings to Audit, Weiss to HSE) in anticipation of mandatory director retirements at age 75; demonstrated proactive board renewal process.

Maintains board capability and diversity of expertise; reduces succession risk; signals commitment to periodic refreshment
Enterprise Risk Management (ERM) Program

Integrated ERM program identifies and analyzes enterprise-level risks (commodity price, geopolitical, cybersecurity, HSE, climate, etc.); annual ERM report presented to Audit Committee; cross-functional risk visibility and executive oversight.

Systematic risk identification and governance; Board oversight of material risks
Cybersecurity Governance and Incident Response

Chief Information Security Officer (CISO, >25 years experience) reports to Chief Administrative Officer; Incident Response Plan documented; CISO provides quarterly cybersecurity updates to Board; Audit Committee receives detailed annual cybersecurity review; third-party security assessment conducted per NIST standards.

Formal cybersecurity governance structure; transparent incident reporting to Board and disclosure to shareholders
Code of Business Conduct and Insider Trading Policies

Code of Business Conduct applies to all Directors and employees; serves as code of ethics for principal executive, financial, and accounting officers; Use of Material Nonpublic Information policy and anti-hedging/anti-pledging policy in place; no waivers granted in 2025.

Establishes ethical baseline and compliance expectations; prevents insider trading and financial misconduct
Shareholder Engagement and Voting

Board participates in off-season shareholder engagement; Fall 2025 outreach to shareholders representing ~61% of outstanding shares and both ISS and Glass Lewis proxy advisors; video conferences held with shareholders representing ~35% of shares; annual shareholder meeting with voting on director elections (majority voting standard) and say-on-pay advisory vote.

Direct feedback loop to Board on shareholder priorities; transparent governance communication

These are Missionomics' own editorial scores — directional signals built from disclosed facts under a published method, not certifications or definitive ratings of Halliburton 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 Halliburton Company in the app for interactive charts and portfolio building.

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