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Baker Hughes, a GE Company - Climate Change 2018 C0. Introduction C0.1 (C0.1) Give a general description and introduction to your organization. On July 3, 2017, Baker Hughes and GE Oil & Gas merged into a new company, Baker Hughes, a GE company (BHGE). Please note the scope of this questionnaire includes both Baker Hughes and GE Oil & Gas for fiscal year 2017 for Scope 1 and Scope 2 emissions. However, Business Travel is the only Scope 3 emission that includes both companies, all other Scope 3 emissions are reported for Baker Hughes only. We are the only fullstream provider of integrated oilfield products, services and digital solutions with a presence in more than 120 countries. We strive to provide best-in-class physical and digital technology solutions for customer productivity, leveraging complementary technologies to serve customers across the full spectrum of the oil and gas value chain. We believe that there are structural changes taking place in the oil and gas industry that require a change in how we work. No matter the oil price, our customers are looking for new models and solutions to deliver higher industrial yield, which means improving productivity and efficiency and leveraging economies of scale, with lower carbon impact. While we will continue to serve customers on a project basis, our fullstream portfolio, digital capabilities and leading technology and services will enable us to shift towards outcome-focused solutions, enabling customers to lower capital and operating costs, reduce non-productive time and boost resource recovery. Reliable and affordable energy is a critical building block for any modern society, and without it, sustainable economic growth will be impossible. Energy is essential, and the scientific consensus is that fossil fuels used to generate electricity and power transportation emit amounts of carbon dioxide that are contributing to climate change. BHGE supports policies that promote both lower carbon emissions and sustainable economic growth. Policies and regulations to help reduce carbon emissions are essential to drive technology development and deployment. Fairness to consumers, environmental integrity, cost-effectiveness, sound science and technology neutrality should be the guiding principles for arriving at any national strategy. C0.2 (C0.2) State the start and end date of the year for which you are reporting data. Start date End date Indicate if you are providing emissions data for past reporting years Select the number of past reporting years you will be providing emissions data for Row 1 January 1 2017 December 31 2017 No <Not Applicable> Row 2 <Not Applicable> <Not Applicable> <Not Applicable> <Not Applicable> Row 3 <Not Applicable> <Not Applicable> <Not Applicable> <Not Applicable> Row 4 <Not Applicable> <Not Applicable> <Not Applicable> <Not Applicable> C0.3 CDP Page of 57 1

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Page 1: Baker Hughes, a GE Company - Climate Change 2018 · 2019. 7. 1. · Baker Hughes, a GE Company - Climate Change 2018 C0. Introduction C0.1 (C0.1) Give a general description and introduction

Baker Hughes, a GE Company - Climate Change 2018

C0. Introduction

C0.1

(C0.1) Give a general description and introduction to your organization.

On July 3, 2017, Baker Hughes and GE Oil & Gas merged into a new company, Baker Hughes, a GE company (BHGE). Please notethe scope of this questionnaire includes both Baker Hughes and GE Oil & Gas for fiscal year 2017 for Scope 1 and Scope 2emissions. However, Business Travel is the only Scope 3 emission that includes both companies, all other Scope 3 emissions arereported for Baker Hughes only.

We are the only fullstream provider of integrated oilfield products, services and digital solutions with a presence in more than 120countries. We strive to provide best-in-class physical and digital technology solutions for customer productivity, leveragingcomplementary technologies to serve customers across the full spectrum of the oil and gas value chain. We believe that there arestructural changes taking place in the oil and gas industry that require a change in how we work. No matter the oil price, ourcustomers are looking for new models and solutions to deliver higher industrial yield, which means improving productivity andefficiency and leveraging economies of scale, with lower carbon impact. While we will continue to serve customers on a project basis,our fullstream portfolio, digital capabilities and leading technology and services will enable us to shift towards outcome-focusedsolutions, enabling customers to lower capital and operating costs, reduce non-productive time and boost resource recovery.

Reliable and affordable energy is a critical building block for any modern society, and without it, sustainable economic growth will beimpossible. Energy is essential, and the scientific consensus is that fossil fuels used to generate electricity and power transportationemit amounts of carbon dioxide that are contributing to climate change. BHGE supports policies that promote both lower carbonemissions and sustainable economic growth. Policies and regulations to help reduce carbon emissions are essential to drivetechnology development and deployment. Fairness to consumers, environmental integrity, cost-effectiveness, sound science andtechnology neutrality should be the guiding principles for arriving at any national strategy.

C0.2

(C0.2) State the start and end date of the year for which you are reporting data.

Start date End date Indicate if you are providing emissions data for pastreporting years

Select the number of past reporting years you will be providingemissions data for

Row1

January 12017

December 312017

No <Not Applicable>

Row2

<NotApplicable>

<NotApplicable>

<Not Applicable> <Not Applicable>

Row3

<NotApplicable>

<NotApplicable>

<Not Applicable> <Not Applicable>

Row4

<NotApplicable>

<NotApplicable>

<Not Applicable> <Not Applicable>

C0.3

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(C0.3) Select the countries/regions for which you will be supplying data.AngolaArgentinaAzerbaijanBolivia (Plurinational State of)BrazilCanadaColombiaEcuadorEgyptGabonGermanyGhanaIndiaIndonesiaIraqItalyKazakhstanKuwaitMalaysiaMexicoNigeriaPeruPhilippinesQatarRussian FederationSaudi ArabiaSingaporeThailandTrinidad and TobagoUgandaUnited Arab EmiratesUnited Kingdom of Great Britain and Northern IrelandUnited States of AmericaViet Nam

C0.4

(C0.4) Select the currency used for all financial information disclosed throughout your response.USD

C0.5

(C0.5) Select the option that describes the reporting boundary for which climate-related impacts on your business are beingreported. Note that this option should align with your consolidation approach to your Scope 1 and Scope 2 greenhouse gasinventory.Operational control

C1. Governance

C1.1

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(C1.1) Is there board-level oversight of climate-related issues within your organization?Yes

C1.1a

(C1.1a) Identify the position(s) of the individual(s) on the board with responsibility for climate-related issues.

Position ofindividual(s)

Please explain

Other C-SuiteOfficer

The Chief Health, Safety, and Environment Officer (CHSEO) provides periodic updates to the Governance and HSE Committee and reportsdirectly to the Chairman and Chief Executive Officer. The CHSEO provides reports and presents to this Board Committee on HSE challenges,milestones & metrics, strategies and highlights of success on a variety of topics, including emissions, climate change and sustainability.

Other, pleasespecify (TheGovernance andHSE Committee)

The Governance and Nominating Committee is formally responsible for sustainability, including the risks associated with climate change. Acopy of the Governance and HSE Committee charter may be viewed at the following link, http://investors.bhge.com/corporate-governance/documents-charters

C1.1b

(C1.1b) Provide further details on the board’s oversight of climate-related issues.

Frequencywith whichclimate-relatedissues are ascheduledagenda item

Governancemechanisms intowhich climate-related issuesare integrated

Please explain

Scheduled –somemeetings

Reviewing andguiding strategyReviewing andguiding riskmanagementpoliciesReviewing andguiding annualbudgetsReviewing andguiding businessplansSettingperformanceobjectivesMonitoringimplementationand performanceof objectivesOverseeing majorcapitalexpenditures,acquisitions anddivestituresMonitoring andoverseeingprogress againstgoals and targetsfor addressingclimate-relatedissues

Our annual report for 2017 discusses our strategy which includes helping customers improve productivity and efficiency andleverage economies of scale to deliver a higher industrial yield, with lower carbon impact. Because lowering the carbon footprintfor BHGE and delivering lower carbon solutions to our customers is embedded in our strategy, it flows through our policies,capital allocation plans and performance objectives. The strategic goals outlined in our 2018 Proxy Statement make up 30% ofthe short-term bonus payout for our executives. These strategic blueprint goals include HSE metrics as well as metrics relatedto our strategy.

C1.2

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(C1.2) Below board-level, provide the highest-level management position(s) or committee(s) with responsibility for climate-related issues.

Name of theposition(s)and/orcommittee(s)

Responsibility Frequencyofreportingto theboard onclimate-relatedissues

Riskcommittee

Assessing climate-related risks and opportunities Annually

Other, pleasespecify(GlobalEnvironmental&Sustainability)Full Title isGlobalEnvironmental&SustainabilityDirector

Both assessing and managing climate-related risks and opportunitiesThe Global Environmental and Sustainability Director is responsible for evaluating risks related to climate change, and for managingthe overall greenhouse gas (GHG) program and reports directly to the Executive Vice President of Health, Safety, and Environment.This individual along with the Environmental & Sustainability Group develops principles and tools, initiates action for continuousimprovement. They are responsible for monitoring trends, proposing mitigation strategies and improvement goals, and reportingperformance data both internally and externally. This includes the annual compilation of the GHG inventory and quality assurancereview of the data. Various Managers and Directors within the company are responsible for maintaining the data necessary to completethe inventory and subsequent updates.

Annually

Other, pleasespecify (●Chief HSEOfficer)

Both assessing and managing climate-related risks and opportunities Annually

C1.2a

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(C1.2a) Describe where in the organizational structure this/these position(s) and/or committees lie, what their associatedresponsibilities are, and how climate-related issues are monitored.

Risk Committee: The BHGE Risk Management responsibility lies within the companies Legal group and oversees the EnterpriseRisk Management (ERM) process working in collaboration across the global BHGE Leadership of the company. The Enterprise RiskManagement process addresses: 1) Transition risks including legal compliance e.g., cap and trade schemes, emissions reportingobligations and fuel/energy taxes. 2) Physical risks including effects of climate change e.g., potential for weather-related damage toassets and disruption to operations and supply chain. 3) Other risks e.g., geographical, political, security of supply, potential financialimpacts and reputational. The process also identifies opportunities for the sale of new products and services. At an enterprise level,monitoring and evaluating business risk is conducted annually with the Board of Directors oversight and review and as importantmatters arise.

Material issues that are identified through the ERM process are prioritized based on the degree of financial impact that a risk oropportunity presents to the organization. For example, a risk may have the potential for disruption to business or require significantcapital expenditure. An opportunity may have the potential for significant revenue generation. Examples of opportunities from climatechange legislation include carbon capture and storage, geothermal drilling operations, the conversion of diesel vehicles andequipment to natural gas, and the supply of chemicals that reduce emissions from diesel fuel.

HSE Executive Leadership Team (ELT): The Corporate HSE ELT consists Chief HSE Officer and Senior Executive from eachproduct company and functional area. The Global Environment & Sustainability Director along with the Corporate EnvironmentalTeam, monitors and reports the status of our energy and GHG reduction goals each month. Progress on goals and targets arereported quarterly to the HSE ELT, the Enterprise Executive Leadership Team (ELT) and board of directors and our performance ispublished annually to external stakeholders (investors, clients and the general public). In addition, locations that have regulatoryemissions reporting requirements report to their local authority annually.

Performance results for company energy efficiency and greenhouse gas emission reduction goals are compiled in the Annual Health,Safety, and Social Responsibility report and presented to the Chief HSE Officer, the Executive Leadership Team (including ourCEO), and the Board of Directors.

Low Carbon Strategy Team: In 2018, a low carbon strategy group was formed to evaluate opportunities for reducing carbon acrossthe entire oil and gas supply chain. The group includes senior executives and vice presidents within Market & Technology;sustainability leads within HSE; and Government, Community, and Industry Relations. The group works to reduce BHGE’s carbonfootprint and BHGE customers’ carbon footprints, as well as identify opportunities to expand into clean energy solutions. Informationis reported at least annually to the Board of Directors and as important matters arise. .

Since 2010, BHGE (formerly Baker Hughes) has worked to reduce energy use and minimize our carbon footprint by structuring anenergy audit program to identify key Energy Conservation Measures (ECM) applicable to our facilities and operations. Theoverwhelming success of this audit program led to the development of an Energy and Resource Steering Team in 2012 to managethe implementation of energy conservation measures and an overall energy management program. The team was initially composedof the Environmental Affairs Center of Expertise Energy Lead, Western Hemisphere Facility Director and Eastern Hemisphere FacilityDirector. Once fully functional, this team became the Energy Management Strategies Group and includes additional membersrepresenting Global Power and Alternative Energy.

C1.3

(C1.3) Do you provide incentives for the management of climate-related issues, including the attainment of targets?Yes

C1.3a

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(C1.3a) Provide further details on the incentives provided for the management of climate-related issues.

Who is entitled to benefit from these incentives?Environmental, health, and safety manager

Types of incentivesMonetary reward

Activity incentivizedEnergy reduction project

CommentEnergy and Emission Reduction Projects and Targets: The Global Environmental and Sustainability Director along with HSEManagers have individual goals related to (1) meeting environmental goals and sustainability objectives and (2) external reportingand communication including disclosures to customers, investors, and sustainability surveys including CDP, Dow JonesSustainability Index (DJSI) and others.

Who is entitled to benefit from these incentives?Facilities manager

Types of incentivesMonetary reward

Activity incentivizedEnergy reduction project

CommentEnergy reduction projects / initiatives are one of the top four business goals for facility and Real Estate managers which are tied totheir incentive compensation (bonus) and merit increase.

Who is entitled to benefit from these incentives?Other, please specify (Health, Safety & Environment function)

Types of incentivesMonetary reward

Activity incentivizedEnergy reduction target

CommentEnergy Emissions and Reduction Target: Various personnel throughout the organization have HSE goals as part of their IncentiveCompensation Plan. These goals include the 2017 environmental goal of a 10% reduction in water, energy and associatedgreenhouse gas emissions.

Who is entitled to benefit from these incentives?All employees

Types of incentivesMonetary reward

Activity incentivizedEmissions reduction target

CommentThe Chairman’s HSE Excellence Award is the most prestigious and coveted HSE recognition. This award recognize employeeteams for HSE achievements that include performance against targets for reduction in energy use and GHG emissions. During2017, 9 teams were selected from 60 nominees. Refer to the attached 2017 HSE and Social Responsibility Report, section WeLead In All Ways. Each winning team receives $10,000, which can be used as deemed necessary. Most location typically makedonations to local charities and/or educational programs within their communities.

Who is entitled to benefit from these incentives?All employees

Types of incentivesRecognition (non-monetary)

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Activity incentivizedEmissions reduction target

CommentBHGE teams that have taken action to reduce energy use and emissions through product / service design or through behavioralchanges are recognized on a routine basis through various internal systems (i.e., newsletters, performance reports, yammer, etc.)to all employees. Employees are also able to view performance as compared to their peers through monthly reporting of keymetrics for business units, geomarkets, and product lines globally. Top performing teams are often recognized by senior executivesand managers during leadership visits and informal meetings.

C2. Risks and opportunities

C2.1

(C2.1) Describe what your organization considers to be short-, medium- and long-term horizons.

From(years)

To(years)

Comment

Short-term

0 3 A key component of the short-term strategy is to continue to raise internal awareness of employees to conserve energy and resourcesthrough various monthly campaigns, training, and monthly performance reports. Our annual goal of a 10% reduction in GHG’s at ouroperating facilities allows our employees to take ownership of their carbon footprint both in and out of the workplace. Monthly tracking ofresource usage and emissions. The goal progress is communicated each month to all employees and the HSE ELT. In 2017, 1228environmental activities were performed globally at our major locations. Roughly 35% were directly related to energy conservation at thelocal level and tracked each month for performance. An example is the installation of electrical energy systems that are automatedusing a Building Automation and Control Network, which started in 2014. This energy management system (EMS) enables the optimaluse of electric powered systems such as the air conditioning (HVAC) system, lighting and power through programmable controllers. TheEMS regulates the electrical start-up of the facility including the lights, HVAC system and chiller to prevent an energy surge. In addition,it manages the on/off controls such that, where possible, equipment is used at off-peak times to minimize the electricity cost.

Medium-term

3 5 BHGE medium-term strategy is to fully-integrate climate change mitigation measures into all aspects of our business planning and riskmanagement process. We aim to integrate energy efficiency into all our major new projects and to promote energy efficiency within ouroperations to maximize return on investment and reduce our environmental impacts. This is largely based on energy reduction projectsat our locations to reduce resource usage and emissions as well as new construction projects based on sustainable building standards.By retrofitting older locations to meet new sustainability standards as well as new construction designed to be more eco-friendlythroughout its lifecycle, energy and emission savings are realized both short and long term. a. We continue to implement our EnergyManagement Standard (an operational control procedure in our HSE management system) in our manufacturing and large scaleoperational facilities. This procedure aligns with the ISO 50001 standard for identifying significant energy sources and implementingmeasures to effectively reduce energy use. b. An example is the development of a screening tool to identify whether moreenvironmentally sound and cost effective options are available to meet facility energy needs. The tool evaluates various factors tocompare utility provided power to other options including fuel cells, photovoltaic, and natural gas turbines. At a number of our facilities,electrical energy systems are automated using a Building Automation and Control Network. This energy management system (EMS)enables the optimal use of electric powered systems such as the air conditioning (HVAC) system, lighting and power throughprogrammable controllers. The EMS regulates the electrical start-up of the facility including the lights, HVAC system and chiller toprevent an energy surge. In addition, it manages the on/off controls such that, where possible, equipment is used at off-peak times tominimize the electricity cost.

Long-term

5 20 Ultimately, our long-term strategy is to maintain our top-tier status with regard to climate change performance. The efforts to reduceenergy consumption and use renewable and alternative forms of energy is saving BHGE money through decreased utility costs andmaintaining compliance with climate change regulations. In addition, we are realizing new business opportunities in our involvement withcarbon capture and storage, geothermal drilling and the development of chemicals that reduce emissions from diesel fuel used intransportation. It enables BHGE to be the more viable option amongst our competitors when customers are making decisions based oncriteria and policies set forth in the Paris and Kyoto agreements.

C2.2

(C2.2) Select the option that best describes how your organization's processes for identifying, assessing, and managingclimate-related issues are integrated into your overall risk management.Integrated into multi-disciplinary company-wide risk identification, assessment, and management processes

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C2.2a

(C2.2a) Select the options that best describe your organization's frequency and time horizon for identifying and assessingclimate-related risks.

Frequencyofmonitoring

How far intothe futureare risksconsidered?

Comment

Row1

Six-monthlyor morefrequently

>6 years The Baker Hughes Enterprise Risk Management process addresses risks including: 1) Legal compliance e.g., cap and tradeschemes, emissions reporting obligations and fuel/energy taxes. 2) Physical effects of climate change e.g., potential for weather-related damage to assets and disruption to operations and supply chain. 3) Other risks e.g., geographical, political, security ofsupply and potential financial impacts. The process also identifies opportunities for the sale of new products and services. At anenterprise level, monitoring and evaluating business risk is conducted annually. The corporate Environmental group monitors andreports the status of our energy and greenhouse gas (GHG) reduction goals each month. We report quarterly to the ExecutiveTeam and Board of Directors and publish our performance annually to external stakeholders (investors, customers, and thegeneral public). In addition, locations that have regulatory emissions reporting requirements report annually.

C2.2b

(C2.2b) Provide further details on your organization’s process(es) for identifying and assessing climate-related risks.

In order to align with the market, meet customer needs, and remain competitive in our industry BHGE has adopted a strategy basedon the need to conduct business in a manner that protects people, assets, intellectual property, and the environment.

Our strategy is influenced by climate change risks and informed by:

1. Analysis of environmental impacts inherent with our business

2. Biannual meetings of Governance and Health, Safety and Environment Committee to review HSE performance and complianceand review any regulatory issues or trends that may materially affect business operations or company’s reputation.

3. Sustainability performance benchmarking against peers and customers.

4. Tracking and analysis of resource usage and associated GHG emissions at the majority of our locations to identify gaps and areasfor improvement.

C2.2c

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(C2.2c) Which of the following risk types are considered in your organization's climate-related risk assessments?

Relevance&inclusion

Please explain

Currentregulation

Relevant,alwaysincluded

An example is our monitoring of the implementation of the Paris Accord, whose provisions impact signatory countries through theirrespective nationally determined contributions (NDCs) of emissions reductions. These NDCs will in turn impact our customers’ operationswithin each signatory country, and therefore BHGE’s business.

Emergingregulation

Relevant,alwaysincluded

An example is our ongoing monitoring of potential carbon taxation in various jurisdictions around the world.

Technology Relevant,alwaysincluded

BHGE provides fullstream technology solutions that help energy companies develop energy safely and more efficiently while reducingthe carbon footprint of their operations. Our technologies span the entire hydrocarbon lifecycle -- upstream, midstream and downstream -- from exploration through refining. Additionally, within BHGE’s operations, we continually strive to lower our own carbon footprint byimproving the energy efficiency within our facilities and equipment and minimizing waste in our manufacturing processes. Furtherexample is our ongoing monitoring of the prevalence of electric vehicles, which in turn impacts petroleum demand and, therefore, thedemand for BHGE’s products and services.

Legal Relevant,alwaysincluded

An example is our ongoing monitoring of litigation against oil and gas companies alleging that such companies are directly or indirectlyresponsible for the climate-related effects of the extraction, processing, and use of petroleum.

Market Relevant,alwaysincluded

See response to "Technology" above.

Reputation Relevant,alwaysincluded

One example is our ongoing monitoring of social license to operate around the world.

Acutephysical

Relevant,alwaysincluded

One example is our incorporation of the risks of extreme weather events in decisions of where to locate key company assets such asdata centers. This also includes the development of contingency plans and crisis management strategies.

Chronicphysical

Relevant,alwaysincluded

One example is our incorporation of the risks of rising sea levels when deciding where to locate a new BHGE facility, relative to thecurrent coastline.

Upstream Relevant,alwaysincluded

One example is our work with suppliers to ensure that they have business continuation plans in case of climate-related disruptions.

Downstream Relevant,sometimesincluded

One example is our ongoing discussions of the potential impacts of climate change with our customers, the ways that BHGE can helpquantify and lower customers’ emissions, and positioning BHGE as the provider of choice for reduced-emissions solutions.

C2.2d

(C2.2d) Describe your process(es) for managing climate-related risks and opportunities.

BHGE manages climate related risks through the Enterprise Risk Management (ERM) Process. The ERM process is managed byBHGE's Associate General Counsel/Vice President of Global Litigation and is reported to the board’s Audit Committee andGovernance & Nominating Committee, both of which are responsible for monitoring and auditing risk management performance.Each year, the BHGE Leadership Team, which includes representatives for the different functions and geographical regions within theorganization document the risks in their business function, risk trends, the drivers (both internal and external), what measures arecurrently in place to measure and mitigate risk, and then opportunities for improvement. The assessment process includesquestionnaires, in-person interviews and presentations, and the outcome is reported to executive management. The GlobalEnvironmental and Sustainability Director has responsibility for evaluating and communicating climate change risk, with a primaryfocus on regulatory developments, potential impacts and mitigation strategies.

At an asset level, the environmental risks from our operations, including climate change risks are identified through standardprocesses that comprise the Baker Hughes health, safety and environmental management system. These procedures are mandatedfor our employees and contractors. The element “HSE Risks and Impacts” documents the process by which environmental aspectsare identified and the potential impact is given a score based upon the severity of potential consequences and the likelihood it willoccur. If the risk score falls into the high or medium categories, additional control measures must be identified and implemented. Wealso garner input to this process through engagement with stakeholders including industry peers to ensure a broad perspective.

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Prioritization of risks and opportunities:

At the enterprise level, material issues that are identified through the Enterprise Risk Management (ERM) process are prioritizedbased on the degree of financial impact that a risk or opportunity presents to the organization. For example, a risk may have thepotential for disruption to business or require significant capital expenditure. An opportunity may have the potential for significantrevenue generation. Examples of opportunities from climate change legislation include carbon capture and storage, geothermaldrilling operations, the conversion of diesel vehicles and equipment to natural gas, and the supply of chemicals that reduce emissionsfrom diesel fuel.

At an asset level, environmental aspects are identified through risk and impact assessments. The potential impact is given a scorebased upon the severity of potential consequences and the likelihood it will occur. The higher the score, the higher the priority toimplement mitigation measures or implement an opportunity for improvement. The process to identify significant energy sources andrecommended reduction opportunities at our large facilities is a requirement in the enterprise-wide standard operating procedure"Energy Management".

Case studies or examples of how the process has been applied to at least one transition risk and one physical risk are includedbelow:

Transition Risk: An example of the process applied to transition risk is through our commitments in industry collaboration. This isaccomplished through associations that engage with policy makers on legislation intended to reduce greenhouse gas emissions. Thisinvolves participation in technical roundtables, peer review of publications, and disclosures to customers, investors and the generalpublic. We’ve been engaged with the International Oil and Gas Producer’s Association (IOGP) and IPIECA for the past 8 years in jointindustry working groups addressing climate change issues. And, when IPIECA (formerly called the International Petroleum IndustryEnvironmental Conservation Association) formally opened membership to oilfield services companies in 2016, we were one of thefirst to join. We are proud and inspired by our work with our industry partners to make a difference.

Physical Risk: This includes severe weather events such as storms (i.e., hurricanes; most recent being Hurricane Harvey), flooding,and droughts, which could potentially generate material changes in our business operations, revenue, and costs. Managing theserisks provides continuity for our direct operations, and also our supply chain. These such events are monitored through our CrisisManagement Team on a 24/7 basis when weather related events are approaching and during such events. To further reduce therisks associated with extreme weather conditions, the location of new facilities relative to the current coastline is incorporated into therisk management process. For example, our new Energy Innovation Center is located in Oklahoma City, OK and our main datacenters were relocated away from coastal areas.

C2.3

(C2.3) Have you identified any inherent climate-related risks with the potential to have a substantive financial or strategicimpact on your business?Yes

C2.3a

(C2.3a) Provide details of risks identified with the potential to have a substantive financial or strategic impact on yourbusiness.

IdentifierRisk 1

Where in the value chain does the risk driver occur?Direct operations

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Risk typeTransition risk

Primary climate-related risk driverPolicy and legal: Exposure to litigation

Type of financial impact driverPolicy and legal: Increased operating costs (e.g., higher compliance costs, increased insurance premiums)

Company- specific descriptionCompliance with, and rulings and litigation in connection with, environmental regulations and the environmental impacts of our orour customers’ operations may adversely affect our business and operating results. We and our business are impacted by materialchanges in environmental laws, regulations, rulings and litigation. Our expectations regarding our compliance with environmentallaws and regulations and our expenditures to comply with environmental laws and regulations, including (without limitation) ourcapital expenditures for environmental control equipment, are only our forecasts regarding these matters. These forecasts may besubstantially different from actual results, which may be affected by factors such as: changes in law that impose restrictions on airemissions including greenhouse gases linked to climate change.

Time horizonCurrent

LikelihoodUnknown

Magnitude of impactUnknown

Potential financial impact

Explanation of financial impactImpact not quantified financially given wide range of possible outcomes and uncertain likelihood and magnitude of impact of each

Management methodSeveral groups within BHGE monitor environmental rulings and litigation on an ongoing basis. Management discusses theirpotential and actual impact on our and our customers' businesses and develops strategies to mitigate these risks.

Cost of management0

CommentCost of management is not material, therefore no value is given.

IdentifierRisk 2

Where in the value chain does the risk driver occur?Direct operations

Risk typeTransition risk

Primary climate-related risk driverPolicy and legal: Enhanced emissions-reporting obligations

Type of financial impact driverPolicy and legal: Increased operating costs (e.g., higher compliance costs, increased insurance premiums)

Company- specific descriptionInternational, national, and state governments and agencies continue to evaluate and promulgate legislation and regulations thatare focused on restricting emissions commonly referred to as greenhouse gas (GHG) emissions. In the United States, the U.S.Environmental Protection Agency (EPA) has taken steps to regulate GHG emissions as air pollutants under the U.S. Clean Air Actof 1970, as amended. The EPA’s Greenhouse Gas Reporting Rule requires monitoring and reporting of GHG emissions from,among others, certain mobile and stationary GHG emission sources in the oil and natural gas industry, which in turn may includedata from certain of our wellsite equipment and operations. In addition, the U.S. government has proposed rules in the past settingGHG emission standards for, or otherwise aimed at reducing GHG emissions from, the oil and natural gas industry. Caps oncarbon emissions, including in the United States, have been and may continue to be established and the cost of such caps coulddisproportionately affect the fossil-fuel energy sector. We are unable to predict whether the proposed changes in laws orregulations ultimately will occur or what they ultimately will require, and accordingly, we are unable to assess the potential financialor operational impact they may have on our business. Other developments focused on restricting GHG emissions include the

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United Nations Framework Convention on Climate Change, which includes the Paris Agreement and the Kyoto Protocol; theEuropean Union Emission Trading System; the United Kingdom’s CRC Energy Efficiency and ESOS schemes; and, in the UnitedStates, the Regional Greenhouse Gas Initiative, the Western Climate Action Initiative, and various state programs implementing theCalifornia Global Warming Solutions Act of 2006 (known as Assembly Bill 32).

Time horizonCurrent

LikelihoodUnknown

Magnitude of impactUnknown

Potential financial impact

Explanation of financial impactImpact not quantified financially given wide range of possible outcomes and uncertain likelihood and magnitude of impact of each

Management methodBHGE maintains compliance with existing regulations and reports emissions for permitted facilities required to report. In the UK, weare obligated to report under the Carbon Reduction Commitment. This requires that we report our energy and carbon footprint tothe authorities, retain auditable records, pay for CO2 emissions through the purchase of carbon allowances, implement energyreduction schemes, benchmark our performance against other businesses and submit figures annually for the assessment ofallowances for the following year. We also follow greenhouse gas (GHG) emission reporting requirements in other countriesincluding Canada, Australia and Brazil, among others. BHGE reports enterprise-wide GHG emissions in accordance with aninternal reporting policy and plan. We utilize a third party to validate the calculation and reporting procedure.

Cost of management0

CommentBaker Hughes made a capital investment of approximately $500,000 in emissions management software in 2011/2012. The annualcost for staff time to manage the emissions reporting and verification is approximately $250,000 to $350,000. For the UK, ourcompliance costs are less than $200,000.

IdentifierRisk 3

Where in the value chain does the risk driver occur?Direct operations

Risk typeTransition risk

Primary climate-related risk driverMarket: Changing customer behavior

Type of financial impact driverMarket: Reduced demand for goods and/or services due to shift in consumer preferences

Company- specific descriptionCurrent or future legislation, regulations and developments, including those related to climate change, may curtail production anddemand for hydrocarbons such as oil and natural gas in areas of the world where our customers operate, by shifting demandtowards relatively lower carbon energy sources such as wind, solar and other renewables. Many governments are providing taxadvantages and other subsidies and promoting technological research to support renewable energy sources, or are mandating theuse of renewable fuels or technologies. These governmental initiatives, as well as increased societal awareness of climate changeimpacts, have also resulted in increased investor and consumer demand for renewable energy. Any resulting reduction in demandfor oil and natural gas could adversely affect future demand for our services and products, which may in turn adversely affect futureresults of operations.

Time horizonShort-term

LikelihoodLikely

Magnitude of impactUnknown

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Potential financial impact

Explanation of financial impactImpact not quantified financially given wide range of possible outcomes and uncertain magnitude of impact of each

Management methodBHGE continues to develop innovative solutions that help reduce our oil and gas customers' carbon footprints by avoidingemissions, thereby helping to improve the relative carbon footprint of oil and gas compared to non-oil and gas energy sources. Seeexamples of such solutions in section C 4.5. In additon, as our customers diversify their businesses by investing in non-oil and gasbusinesses such as renewables, we are also investigating the potential for such diversification.

Cost of management600000000

Comment2017 total BHGE R and D spend was $600 MM as indicated in our Annual Report. Costs are dispersed across various groupswithin BHGE (e.g. research and development, product management, strategy and marketing) and are not broken out separately.

C2.4

(C2.4) Have you identified any climate-related opportunities with the potential to have a substantive financial or strategicimpact on your business?Yes

C2.4a

(C2.4a) Provide details of opportunities identified with the potential to have a substantive financial or strategic impact onyour business.

IdentifierOpp1

Where in the value chain does the opportunity occur?Customer

Opportunity typeProducts and services

Primary climate-related opportunity driverDevelopment and/or expansion of low emission goods and services

Type of financial impact driverIncreased revenue through demand for lower emissions products and services

Company- specific descriptionBHGE continues to develop innovative solutions that help reduce our oil and gas customers' carbon footprints by avoidingemissions, thereby helping to improve the relative carbon footprint of oil and gas compared to non-oil and gas energy sources. Seeexamples of such solutions in section C 4.5.

Time horizonCurrent

LikelihoodVirtually certain

Magnitude of impactUnknown

Potential financial impact

Explanation of financial impactImpact not quantified financially given wide range of possible outcomes and uncertain magnitude of impact of each at this time.

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Strategy to realize opportunityIn 2018, we began quantifying the emissions avoidance impact of BHGE solutions that reduce our customers' carbon footprints. Inaddition, we are investing to develop a variety of new solutions to complement our existing portfolio of low carbon solutions.

Cost to realize opportunity600000000

Comment2017 total BHGE R and D spend was $600 MM as indicated in our Annual Report. Costs to develop and market lower emissionsproducts and services are dispersed across various groups within BHGE (e.g. research and development, product management,strategy and marketing) and are not broken out separately.

IdentifierOpp2

Where in the value chain does the opportunity occur?Direct operations

Opportunity typeResource efficiency

Primary climate-related opportunity driverMove to more efficient buildings

Type of financial impact driverReduced operating costs (e.g., through efficiency gains and cost reductions)

Company- specific descriptionIncreased pricing for energy, as well as an opportunity to reduce our carbon footprint drove the implementation of sustainablebuilding standards. Energy-efficiency projects included lighting retrofits and the installation of the natural gas fuel cell at our facilityin Shafter, California. The cost of energy generated by the fuel cell is significantly less than purchasing electricity. This fuel cell hasoperated for 5 years and its potential expansion is under review.

Time horizonCurrent

LikelihoodVirtually certain

Magnitude of impactLow

Potential financial impact4200000

Explanation of financial impactThese projects provide a cost saving from electricity usage and several federal and state incentives.

Strategy to realize opportunityBaker Hughes developed a robust screening tool to identify whether more environmentally sound and cost effective options wereavailable to meet facility energy needs. The alternate energy generation assessment tool assisted planners in determining thefeasibility of installing co generation and/or self-generation to provide electrical power at company owned facilities. This toolprovides significant advantages over the traditional approach of engineering studies, which are often time consuming andexpensive. The tool evaluates various factors to compare utility provided power to other options including fuel cells, photovoltaic,and natural gas turbines. The power supply types are evaluated against a number of criteria including feasibility, energy quality,greenhouse gas emissions, cost, payback period and other factors.

Cost to realize opportunity3200000

CommentBaker Hughes invested $2.7 MM in the natural gas fuel cell. Costs for lighting retrofits range between $500 K to $1 MM.

IdentifierOpp3

Where in the value chain does the opportunity occur?Direct operations

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Opportunity typeResilience

Primary climate-related opportunity driverParticipation in renewable energy programs and adoption of energy-efficiency measures

Type of financial impact driverIncreased market valuation through resilience planning (e.g., infrastructure, land, buildings)

Company- specific descriptionBaker Hughes entered into an agreement with Walpole Solar Farm, LLC, for the development of a 4.75 MW renewable solarenergy project on a brownfield property. This has been an ideal reuse program, benefiting Baker Hughes, Walpole Solar Farm,New England Electric and the local community of Walpole.

Time horizonCurrent

LikelihoodVirtually certain

Magnitude of impactLow

Potential financial impact2000000

Explanation of financial impactRevenue of more than $2 MM is generated for the solar lease at Walpole.

Strategy to realize opportunityBHGE partnered with Soltage, a renewable energy provided, in recent years to develop a solar farm on a brownfield site as part ofour commitment to create sustainable energy development and our goal of reducing greenhouse gases. Construction of theWalpole Solar Project is on 25 acres at a former industrial manufacturing plant owned by BHGE. The solar panels are constructedwithin an un-forested area of the footprint of the former manufacturing building. The surrounding ecosystem was not disturbedincluding the valuable tree species (i.e., the Atlantic White Cedar, home for protected species of moth).

Cost to realize opportunity300000

CommentRevenue of more than $2 MM is generated for the solar lease at Walpole.

IdentifierOpp4

Where in the value chain does the opportunity occur?Direct operations

Opportunity typeResilience

Primary climate-related opportunity driverOther

Type of financial impact driverIncreased market valuation through resilience planning (e.g., infrastructure, land, buildings)

Company- specific descriptionIncreasing attention paid to climate change, and our activities to mitigate risk through energy efficiency and a reduction ingreenhouse gas emissions, have provided us the opportunity to demonstrate that we are a good corporate citizen.

Time horizonCurrent

LikelihoodVirtually certain

Magnitude of impactUnknown

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Potential financial impact

Explanation of financial impactDemonstrating our environmental and social responsibility efforts through investor ranking surveys brings BHGE to the attention ofpotential investment organizations. For example, passive investment occurs in firms that are listed on the Dow Jones SustainabilityIndex (DJSI).

Strategy to realize opportunityOur BHGE strategy involves a focus on transparency and alignment with recognized sustainability reporting standards such as theGlobal Reporting Initiative. Key components of our strategy include the following: a) BHGE participates in a number of investorsurveys and is keen to share our efforts with investors, customers and employees. b) Publication of performance, policies andrelated information on our environment, social, and governance programs on an external website (https://www.bhge.com/corporate-responsibility), which contains specific information on climate and energy (https://www.bhge.com/corporate-responsibility/planet/climate). c) We also publish our annual Health, Safety, Environment and Social Responsibility report(https://www.bhge.com/health-safety-and-environment) as another means to provide current details on our success and challenges.This comprehensive strategy enables us to reach out to many of our key stakeholders and aligns with our commitment to betransparent in our operations.

Cost to realize opportunity275000

CommentOverall, our corporate social responsibility efforts include energy reduction and community programs. In 2017, capital costs ofapproximately 2.5 million were directed to energy and water conservation projects including emission reduction. Baker Hughesinvested $2.6 million of company funding for the sponsorship of community events and charitable giving.

C2.5

(C2.5) Describe where and how the identified risks and opportunities have impacted your business.

Impact Description

Productsandservices

Impacted As described in Table C2.3, BHGE faces the risk that current or future legislation, regulations and developments, including those related toclimate change, may curtail production and demand for hydrocarbons such as oil and natural gas in areas of the world where our customersoperate, by shifting demand towards relatively lower carbon energy sources such as wind, solar and other renewables. Many governmentsare providing tax advantages and other subsidies and promoting technological research to support renewable energy sources, or aremandating the use of renewable fuels or technologies. These governmental initiatives, as well as increased societal awareness of climatechange impacts, have also resulted in increased investor and consumer demand for renewable energy. Any resulting reduction in demandfor oil and natural gas could adversely affect future demand for our services and products, which may in turn adversely affect future resultsof operations. As described in Table C2.4, BHGE also has opportunities in the products and services it provides to customers. We continueto develop innovative solutions that help reduce our oil and gas customers' carbon footprints by avoiding emissions, thereby helping toimprove the relative carbon footprint of oil and gas compared to non-oil and gas energy sources. See examples of such solutions in TableC4.5.

Supplychainand/orvaluechain

Impactedfor somesuppliers,facilities,orproductlines

BHGE works with our suppliers to reduce interruptions due to all risks. This includes ensuring that major suppliers have business continuityplans. In addition, BHGE continually evaluates our facilities for opportunities to reduce emissions through energy efficiency improvements.

Adaptationandmitigationactivities

Impacted BHGE’s climate-related adaptation and mitigation activities include planning for potential sea level rise and extreme weather events andlocating facilities in lower-risk areas were possible. This included crisis management strategies and contingency plans in areas based onrisk. BHGE also designs its facilities to be able to cope with anticipated temperature increases. This includes scalable electrical and climatecontrol systems.

Investmentin R&D

Impacted Many governments are providing tax advantages and other subsidies and promoting technological research to support renewable energysources and a portion of BHGE’s research and development efforts are directed towards that area. In addition, BHGE’s research anddevelopment focuses on improving the efficiency of our customers’ operations, which has the effect of lowering their emissions.

Operations Impacted One of the ways BHGE reduces operational climate-related risk is by de-manning our wellsite operations and relocating personnel to remoteoperations centers reducing transportation requirements, saving fuel and eliminating some GHG emissions. BHGE also works to reduce thenumber of trucks sent to customer well sites and uses lower emissions forms of transportation when possible, for example rail instead oftruck.

Other,pleasespecify

Notevaluated

No response necessary.

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C2.6

(C2.6) Describe where and how the identified risks and opportunities have factored into your financial planning process.

Relevance Description

Revenues Impacted for somesuppliers, facilities,or product lines

As described in table C2.4, BHGE continues to develop innovative solutions that help reduce our oil and gas customers' carbonfootprints by avoiding emissions, thereby helping to improve the relative carbon footprint of oil and gas compared to non-oil andgas energy sources. See examples of such solutions in table C4.5.

Operatingcosts

Impacted for somesuppliers, facilities,or product lines

As described in table C2.4, BHGE has implemented various energy-efficiency projects at its facilities such as lighting retrofits,the installation of a natural gas fuel cell, and solar power. BHGE has also reduced the amount of fuel it uses for transportation.

Capitalexpenditures/ capitalallocation

Impacted for somesuppliers, facilities,or product lines

To grow revenues and reduce operating costs as described above, capital may need to be allocated, for example to developlow carbon technologies and solutions for our customers and to purchase energy efficiency systems.

Acquisitionsanddivestments

Impacted for somesuppliers, facilities,or product lines

We maintain a pipeline of potential acquisitions and divestments, aligned with our strategy, including our desire to help reduceour oil and gas customers' carbon footprints.

Access tocapital

Impacted for somesuppliers, facilities,or product lines

We monitor trends in the capital markets and are in regular contact with our investors, including on business opportunities andrisks related to climate change.

Assets Impacted for somesuppliers, facilities,or product lines

To grow revenues as described above, capital may need to be allocated, for example to develop assets such as new lowcarbon technologies. Also, as described in table C2.3, several groups within BHGE monitor environmental rulings and litigationon an ongoing basis for potential adverse impact on our and our customer's businesses and assets.

Liabilities Impacted for somesuppliers, facilities,or product lines

As described in table C2.3, several groups within BHGE including environmental and sustainability, legal and financial experts,monitor environmental rulings and litigation on an ongoing basis. Management discusses their potential adverse impact on ourand our customers' businesses.

Other Not evaluated No response necessary

C3. Business Strategy

C3.1

(C3.1) Are climate-related issues integrated into your business strategy?Yes

C3.1a

(C3.1a) Does your organization use climate-related scenario analysis to inform your business strategy?Yes, qualitative

C3.1c

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(C3.1c) Explain how climate-related issues are integrated into your business objectives and strategy.

BHGE manages our environmental footprint through sustainable innovations in operations and compliance with environmentalregulations. Our global environmental performance and sustainable efforts are bolstered by our HSE policy, goals, and keyperformance indicators (KPIs). We use certified HSE management systems to control operational implementation. We track ourenvironmental Key Performance Indicators (KPIs) daily, assessing them to identify trends and to drive further improvements.

We identify and manage inherent climate change risks. This includes severe weather events such as storms, flooding, and droughts,which could potentially generate material changes in our business operations, revenue, and costs. Managing these risks providescontinuity for our direct operations, and also our supply chain.

In 2017 we expanded our efforts to reduce water, energy, and associated greenhouse (GHG) emissions by 10% each year, engagingwith our employees through a series of environmental actions with specific conservation targets. We achieved an overall reduction of11%, calculated on a weighted average based on our use of electricity (40%), natural gas (40%), and water (20%). We measure ourprogress at our largest facilities using a broad spectrum of data management systems (including GreenLink, EMIS, and ENGIEInsight). These facilities represent more than 85% of the energy and water used across our global manufacturing and operationsfacilities.

We continue to implement our Energy Management Standard (an operational control procedure in our HSE management system) inour manufacturing and large scale operational facilities. This procedure aligns with the ISO 50001 standard for identifying significantenergy sources and implementing measures to effectively reduce energy use. Additionally, in 2018 our Turbomachinery and ProcessSolutions (TPS) products will align with the ISO 14000 standard for environmental management.

BHGE is also interested in new business opportunities involving carbon capture and storage, geothermal drilling, and thedevelopment of chemicals that reduce emissions from diesel fuel used in transportation, among other opportunities. We believe thatexecuting in a more eco-friendly manner is a strategic advantage in a global economy where regulatory policies are becoming morerobust.

In 2018, we began developing an enterprise low carbon strategy which continues our focus on reducing BHGE’s carbon footprint andon providing solutions to reduce our customers’ carbon footprints.

C3.1d

(C3.1d) Provide details of your organization’s use of climate-related scenario analysis.

Climate-relatedscenarios

Details

Other,pleasespecify(SeevariousscenariosusedunderDetails)

Over many years, BHGE has evaluated climate-related scenario analyses developed by IEA and considered this information in short and long termbusiness strategies. Now we are developing more detailed and specific scenario analyses. In February 2018 we developed a series of climate-relatedscenario analyses through 2040 called the BHGE 2040 Energy Transition Model. The model uses BP’s Even Faster Electric Vehicle (BP eFEV)scenario to analyze the overall energy mix (oil, gas, coal, nuclear, and renewables) through 2040, incorporating macroeconomic drivers, end user newtechnologies and market trends, projections for affected industries, analysts’ forecasts, and internal BHGE and GE inputs. BHGE analyzed over 20energy transition scenarios developed by the U.S. Energy Information Agency (EIA), International Energy Agency (IEA), World Economic Forum, IHS,McKinsey, Paris Climate Change Group, and others but decided to use the BP eFEV scenario given that it satisfies the goals of the Conference of theParties 21. We did not make any modifications to the BP eFEV scenario, which forecasts a deceleration in the growth of total energy demand as well asa change in the mix of fuel demand toward nuclear, hydro, and renewables, and away from fossil fuels. As part of the GE organization in 2017, BHGEwas included in GE's modeling across their global operations of GHG reductions scenarios as developed by the IEA and IPCC. GE used the "AbsoluteAllocation Approach” to model the expected emissions reduction contributions from selected operations consistent with the “below 2 degrees C”transition paths. Quantitative GE models estimate demand and growth scenarios of the world’s energy mix from extraction to consumption, includingsensitivity of market dynamics due to various inputs such as market responses to economic, regulatory and behavioral changes, and include outputssuch as the impact on global emissions.

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C4. Targets and performance

C4.1

(C4.1) Did you have an emissions target that was active in the reporting year?Absolute target

C4.1a

(C4.1a) Provide details of your absolute emissions target(s) and progress made against those targets.

Target reference numberAbs 1

ScopeScope 1+2 (location-based)

% emissions in Scope100

% reduction from base year17

Base year2012

Start year2016

Base year emissions covered by target (metric tons CO2e)775000

Target year2020

Is this a science-based target?Yes, we consider this a science-based target, but this target has not been approved as science-based by the Science-BasedTargets initiative

% achieved (emissions)47

Target statusUnderway

Please explainA mid-range science-based target has been calculated utilizing the carbon target and profit calculator identified in "The 3%Solution: Driving Profits Through Carbon Reductions". Based on this calculation, our average annual percentage emissionsreduction is 2.1% with a total % reduction of 17% by 2020. A new baseline and target will be established for the combined companybased on 2018 emission data which will provide for one complete year of operating as Baker Hughes, a GE company (BHGE).

Target reference numberAbs 2

ScopeScope 1+2 (location-based)

% emissions in Scope100

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% reduction from base year10

Base year2016

Start year2017

Base year emissions covered by target (metric tons CO2e)792251

Target year2017

Is this a science-based target?No, but we are reporting another target that is science-based

% achieved (emissions)11

Target statusUnderway

Please explainThis is an annual rolling target. Our 2017 environmental performance goal was a 10% reduction in absolute energy use andassociated greenhouse gas emissions compared to previous year. A new baseline and target will be established for the combinedcompany based on 2018 emission data which will provide for one complete year of operating as Baker Hughes, a GE company(BHGE).

Target reference numberAbs 3

ScopeScope 1+2 (location-based)

% emissions in Scope100

% reduction from base year53

Base year2012

Start year2016

Base year emissions covered by target (metric tons CO2e)775000

Target year2050

Is this a science-based target?Yes, we consider this a science-based target, but this target has not been approved as science-based by the Science-BasedTargets initiative

% achieved (emissions)47

Target statusUnderway

Please explainA long range science-based target has been calculated utilizing the carbon target and profit calculator identified in "The 3%Solution: Driving Profits Through Carbon Reductions". Based on this calculation, our average annual percentage emissionsreduction is 2.1% with a total % reduction of 53% by 2050. A new baseline and target will be established for the combined companybased on 2018 emission data which will provide for one complete year of operating as Baker Hughes, a GE company (BHGE).

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C4.2

(C4.2) Provide details of other key climate-related targets not already reported in question C4.1/a/b.

TargetRenewable energy consumption

KPI – Metric numerator100%

KPI – Metric denominator (intensity targets only)Not applicable, this is not an intensity target

Base year2014

Start year2015

Target year2017

KPI in baseline year16000

KPI in target year16351

% achieved in reporting year100

Target StatusUnderway

Please explainThis target involves energy consumption. In 2014, Baker Hughes undertook a new approach to electricity procurement for allUnited Kingdom facilities. Four suppliers provided bids and the selection was based on stability of supply, pricing and environmentalimpacts. Electricity supply re tender was awarded to Dong Energy UK for 100% renewable power on the purchase of electricity in2015. DONG energy provides renewable energy certificates verifying the supply of electricity to all Baker Hughes UK facilities foractual consumption provided from renewable energy wind farms. The base year energy for energy type covered is 16000 MWhwhich is our electricity consumption for 2014. Our target for 2017 was 100% renewable power which has been achieved

Part of emissions targetThis is a separate energy consumption target from our absolute scope 1+2 targets.

Is this target part of an overarching initiative?No, it's not part of an overarching initiative

This is not a part of an overarching initiative but BHGE is evaluating other renewable usages (i.e., wind, solar, etc.) at otherlocations with either electricity providers or installation of our own systems to further reduce our GHG emissions.

C4.3

(C4.3) Did you have emissions reduction initiatives that were active within the reporting year? Note that this can includethose in the planning and/or implementation phases.Yes

C4.3a

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(C4.3a) Identify the total number of projects at each stage of development, and for those in the implementation stages, theestimated CO2e savings.

Number of projects Total estimated annual CO2e savings in metric tonnes CO2e (only for rows marked *)

Under investigation 2 31000

To be implemented* 3 1000

Implementation commenced* 0 0

Implemented* 22 76460

Not to be implemented 1 30000

C4.3b

(C4.3b) Provide details on the initiatives implemented in the reporting year in the table below.

Activity typeEnergy efficiency: Building services

Description of activityLighting

Estimated annual CO2e savings (metric tonnes CO2e)850

ScopeScope 2 (location-based)

Voluntary/MandatoryVoluntary

Annual monetary savings (unit currency – as specified in CC0.4)18000

Investment required (unit currency – as specified in CC0.4)75000

Payback period1-3 years

Estimated lifetime of the initiative6-10 years

CommentIn 2017, the retrofit and replacement for light fixtures at existing facilities were on-going with 10 projects. The replacement has beenbased on cost/benefit analysis taking into consideration the age and life cycle of existing equipment

Activity typeEnergy efficiency: Building services

Description of activityOther, please specify (Building Automation Systems (BAS))

Estimated annual CO2e savings (metric tonnes CO2e)2500

ScopeScope 2 (location-based)

Voluntary/MandatoryVoluntary

Annual monetary savings (unit currency – as specified in CC0.4)20000

Investment required (unit currency – as specified in CC0.4)

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850000

Payback period1-3 years

Estimated lifetime of the initiative16-20 years

CommentWe continue to improve energy efficiencies through more effective management of building services. In 2017 we focused on thecontinuation of upgrading building automation systems (BAS) at 9 locations to more effectively control energy consuming processesat our facilities. Highlights of additional projects included: redesign of water chiller systems, converting diesel power generators togrid-supplied electricity, heating/AC (HVAC) improvements.

Activity typeLow-carbon energy purchase

Description of activityOther, please specify (Wind)

Estimated annual CO2e savings (metric tonnes CO2e)6800

ScopeScope 2 (market-based)

Voluntary/MandatoryVoluntary

Annual monetary savings (unit currency – as specified in CC0.4)23429

Investment required (unit currency – as specified in CC0.4)353560

Payback period<1 year

Estimated lifetime of the initiativeOngoing

CommentIn 2014 Baker Hughes undertook a new approach to electricity procurement for all United Kingdom facilities. Four suppliersprovided bids and the selection was based on stability of supply, pricing and environmental impacts. Electricity supply re tender wasawarded to Dong Energy UK for 100% renewable power on the purchase of electricity in 2016. DONG energy has providedrenewable energy certificates verifying the supply of electricity to all Baker Hughes UK facilities for actual consumption providedfrom renewable energy wind farms. Currently on our third year of contract.

Activity typeOther, please specify (Transportation of Products)

Description of activity<Not Applicable>

Estimated annual CO2e savings (metric tonnes CO2e)38510

ScopeScope 3

Voluntary/MandatoryVoluntary

Annual monetary savings (unit currency – as specified in CC0.4)0

Investment required (unit currency – as specified in CC0.4)0

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Payback period<1 year

Estimated lifetime of the initiative<1 year

CommentIn 2017 we continued our partnership with Union Pacific Railroad to minimize fuel usage during transportation of our products.Approximately 38,510 metric tons of carbon dioxide equivalent were eliminated by using rail services instead of long haul truck forapproximately 6,578 shipments

Activity typeEnergy efficiency: Building fabric

Description of activityOther, please specify (building construction specifications)

Estimated annual CO2e savings (metric tonnes CO2e)27800

ScopeScope 2 (location-based)

Voluntary/MandatoryVoluntary

Annual monetary savings (unit currency – as specified in CC0.4)725000

Investment required (unit currency – as specified in CC0.4)1300000

Payback period1-3 years

Estimated lifetime of the initiative16-20 years

CommentThe enterprise sustainable building construction specifications define energy efficient building materials and design which areincorporated into all new facilities and during upgrades to existing facilities. Our comprehensive design standards include naturaland energy-efficient lighting, energy efficient mechanical systems such as high efficiency boilers and heating plants, sustainableand locally sourced building materials and building architecture, design and placement to optimize energy efficiency such as fast-acting workshop doors. We also continue to use smart metering systems that monitor electricity, gas and water consumption at anumber of facilities in US, Canada, Brazil and the UK. Cost savings shown represent overall energy savings for the company in2017. The new Oklahoma City, OK Innovation Technology Center, is the newest example of our commitment.

C4.3c

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(C4.3c) What methods do you use to drive investment in emissions reduction activities?

Method Comment

Employee engagement BHGE established a Health, Safety, and Environment a (HSE) Policy Statement and enterprise-wide Environmental Goal. Thecommitment to energy reduction starts at the top and is stated in our HSE policy statement. Conservation efforts and steps to mitigategreenhouse gas emissions and climate change also align with our company purpose: to invent smarter ways to bring energy to the world.In addition, our CEO approved the environmental goal to reduce resource use (including water, energy and associated greenhouse gasemissions) by 10% year-on-year. This goal provides the framework for resource-reduction efforts and supports the company’s businessand sustainability objectives by conserving natural resources (environment) and reducing greenhouse gas emissions (environment andcommunity). It also reduces operating cost (economic) and drives the corporate motivation for investing in energy-efficient equipment andalternative clean energy sources.

Compliance withregulatoryrequirements/standards

BHGE locations that hold air emissions permits or are covered by a more general regulatory requirement e.g. UK Carbon ReductionCommitment must comply, and this may require investment. In addition, compliance with engine emission standards and associatedregulations.

Internal financemechanisms

Established incentives to reduce energy consumption and costs. In addition to the environmental benefits, energy conservation has aneconomic benefit, contributing to a healthy bottom line by reducing operating costs.

Internalincentives/recognitionprograms

BHGE annual HSE awards program recognizes facility teams that have demonstrated sustained and superior HSE performance andattain a significant health, safety or environmental achievement. Increasingly, in their applications, teams are documenting environmentalachievements including significant reductions in energy consumption and fuel usage in ways that are often innovative. Winning teamsreceive a trophy and also win $10,000 to spend on a prize of their choice.

Other Internal company standards. BHGE has established policies and standards that guide investment in emissions-reduction technologies.These include the Climate Change Commitments, the Energy Management operational control procedure, and the Sustainable BuildingStandards. In addition, a new Climate Change policy was established for BHGE in 2018 (https://www.bhge.com/corporate-responsibility/planet/climate) and BHGE operated under the GE Climate Change policy for 2017.

Other External financial drivers. Tax incentives contribute significantly to our decision to invest in alternative energy sources such as the naturalgas fuel cell that was fully implemented in 2013 at our facility in Shafter, California. Other future projects under evaluation include solarapplications in USA and UK, combined heat and power technologies in Brazil and Europe, and efforts by our logistics group to reduceemissions through shipped goods.

C4.5

(C4.5) Do you classify any of your existing goods and/or services as low-carbon products or do they enable a third party toavoid GHG emissions?Yes

C4.5a

(C4.5a) Provide details of your products and/or services that you classify as low-carbon products or that enable a third partyto avoid GHG emissions.

Level of aggregationCompany-wide

Description of product/Group of productsBaker Hughes, a GE company, has established a number of BEACON Centers around the world. These centers enable operationsat a rig site to be conducted remotely from an office location. This reduces the number of personnel required to go to the rig site,reducing fuel for transportation and associated GHG emissions.

Are these low-carbon product(s) or do they enable avoided emissions?Avoided emissions

Taxonomy, project or methodology used to classify product(s) as low-carbon or to calculate avoided emissionsOther, please specify (unknown)

% revenue from low carbon product(s) in the reporting year

CommentAs indicated in the CDP Guidance document, methodologies to calculate avoided emissions are still in the infancy of theirdevelopment. We are currently in the process of developing and applying our own internal methodologies for quantifying avoidedemissions from our solutions. Baker Hughes (BHGE) has long contributed to advancements in the area of climate change throughthought leadership in addition to actively participating in industry working groups and efforts to reduce our direct and indirectcarbon footprint. In terms of thought leadership, BHGE’s Nathan Meehan (PhD Petroleum Engineering-Stanford) has analyzed the

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carbon intensity of producing oil in different regions (Society of Petroleum Engineers (SPE) paper 191921-MS Comparing CarbonIntensity of Unconventional and Asia Pacific Oil Production), the productive use of stranded gas (SPE 189181- New Approaches toGas Monetization in Nigeria), and related topics. Nathan’s public messages in speeches, panels, and his editorials while SPEPresident in 2016 urged the industry to mitigate the effects of climate change by minimizing methane emissions, reducing /eliminating flaring, and focusing on energy efficiency and conservation.

Level of aggregationGroup of products

Description of product/Group of productsAs a leader in geothermal drilling, we provide services which are used by third parties to provide an effective alternative energysource with minimal greenhouse gas emissions. In recent years, we have developed systems for drilling and logging that are stableup to 300 degrees C. These systems include wireline imaging of the wellbore, drilling equipment such as mud motors and drillingfluids and monitoring-while-drilling systems. Key to this innovative technology is the development of elastomer-free metal-to-metalmotors.

Are these low-carbon product(s) or do they enable avoided emissions?Avoided emissions

Taxonomy, project or methodology used to classify product(s) as low-carbon or to calculate avoided emissionsOther, please specify (unknown)

% revenue from low carbon product(s) in the reporting year

CommentAs indicated in the CDP Guidance document, methodologies to calculate avoided emissions are still in the infancy of theirdevelopment. We are currently in the process of developing and applying our own internal methodologies for quantifying avoidedemissions from our solutions. Baker Hughes (BHGE) has long contributed to advancements in the area of climate change throughthought leadership in addition to actively participating in industry working groups and efforts to reduce our direct and indirectcarbon footprint. In terms of thought leadership, BHGE’s Nathan Meehan (PhD Petroleum Engineering-Stanford) has analyzed thecarbon intensity of producing oil in different regions (Society of Petroleum Engineers (SPE) paper 191921-MS Comparing CarbonIntensity of Unconventional and Asia Pacific Oil Production), the productive use of stranded gas (SPE 189181- New Approaches toGas Monetization in Nigeria), and related topics. Nathan’s public messages in speeches, panels, and his editorials while SPEPresident in 2016 urged the industry to mitigate the effects of climate change by minimizing methane emissions, reducing /eliminating flaring, and focusing on energy efficiency and conservation.

Level of aggregationGroup of products

Description of product/Group of productsBHGE drilling and stimulation performance and efficiency enhancing solutions reduce rig time as well as surface and downholefootprint, thereby avoiding emissions and lowering costs. Examples include the TerrAdapt™ drill bit; AutoTrak™ and Navi-Drill™drilling systems; VisiTrak™ reservoir navigation and analysis service; LithoTrak™ logging-while-drilling service; PERFORMAX™,LATIDRILL™, and TERRA-MAX™ water-based drilling fluids; DEEPFRAC™ service for multi-stage stimulation of offshore wells;and the SPECTRE™ frac plug. The JewelSuite™ reservoir modeling software provides accurate modeling of of geologicalproperties, and insight into geological hazards and limitations, thereby helping to determine where to drill so that drilling time, rigtime and emissions are reduced.

Are these low-carbon product(s) or do they enable avoided emissions?Avoided emissions

Taxonomy, project or methodology used to classify product(s) as low-carbon or to calculate avoided emissionsOther, please specify (unknown)

% revenue from low carbon product(s) in the reporting year

CommentAs indicated in the CDP Guidance document, methodologies to calculate avoided emissions are still in the infancy of theirdevelopment. We are currently in the process of developing and applying our own internal methodologies for quantifying avoidedemissions from our solutions. Baker Hughes (BHGE) has long contributed to advancements in the area of climate change throughthought leadership in addition to actively participating in industry working groups and efforts to reduce our direct and indirectcarbon footprint. In terms of thought leadership, BHGE’s Nathan Meehan (PhD Petroleum Engineering-Stanford) has analyzed thecarbon intensity of producing oil in different regions (Society of Petroleum Engineers (SPE) paper 191921-MS Comparing CarbonIntensity of Unconventional and Asia Pacific Oil Production), the productive use of stranded gas (SPE 189181- New Approaches toGas Monetization in Nigeria), and related topics. Nathan’s public messages in speeches, panels, and his editorials while SPEPresident in 2016 urged the industry to mitigate the effects of climate change by minimizing methane emissions, reducing /

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eliminating flaring, and focusing on energy efficiency and conservation.

Level of aggregationGroup of products

Description of product/Group of productsBHGE technologies reduce absolute energy requirements and/or improve energy efficiency, thereby avoiding emissions andlowering costs: ProductionLink™ ESP monitoring system and Lufkin Well Manager™ 2.0 monitoring services: reduces trips to wellsite SENTRYNET™ chemical monitoring and automation solution : utilizes solar power to enable operators to manage chemicalapplications while minimizing the need for frequent site visits. Every one of 11,000 field tank monitors in the US saves energy andreduces the carbon foot print for customers by reducing the number of trips to a well to manually measure the amount of product, orto deliver chemical. This reduces travel time, fuel consumption and greenhouse gas emissions, along with minimizing exposure tohealth and safety risks. Electrical submersible generator (ESG) pump: generates power from the injection fluid flow of geothermalwells FLO™ drag reducing agent: reduces energy required at pipeline pump stations Crude Oil Management™ System: enablesrefiners to process low cost opportunity crudes efficiently and with lower emissions. BHGE provides FLO pipeline drag reducers tomaximize efficiency and improve product throughput, SULFIX H2S scavengers to reduce the level of hydrogen sulfide and ensuresafe operations, Wax dispersants to reduce sludge and wax buildup, Field ASIT services technologies to predict the impact of crudeoil blend characteristics, XERIC heavy oil programs to resolve difficult emulsions of heavy crudes, JETTISON solids release agentsto remove solids with brine during desalting process, LIFESPAN exchanger fouling control programs, Control fouling in preheattrains, EXCALIBUR contaminant removal technologies to remove contaminants in the desalter, TOPGUARD overhead corrosioncontrol programs to predict and control the corrosive impact of crude blends and operating conditions, SMARTGUARD high-temperature corrosion control programs to protect equipment from naphthenic acid and sulfur corrosion ORegen : Waste heatrecovery system for gas turbines utlizing a waterless power generation system that captures waste heat from gas turbine exhaustand uses it to generate power with zero additional emissions.

Are these low-carbon product(s) or do they enable avoided emissions?Avoided emissions

Taxonomy, project or methodology used to classify product(s) as low-carbon or to calculate avoided emissionsOther, please specify (unknown)

% revenue from low carbon product(s) in the reporting year

CommentAs indicated in the CDP Guidance document, methodologies to calculate avoided emissions are still in the infancy of theirdevelopment. We are currently in the process of developing and applying our own internal methodologies for quantifying avoidedemissions from our solutions. Baker Hughes (BHGE) has long contributed to advancements in the area of climate change throughthought leadership in addition to actively participating in industry working groups and efforts to reduce our direct and indirectcarbon footprint. In terms of thought leadership, BHGE’s Nathan Meehan (PhD Petroleum Engineering-Stanford) has analyzed thecarbon intensity of producing oil in different regions (Society of Petroleum Engineers (SPE) paper 191921-MS Comparing CarbonIntensity of Unconventional and Asia Pacific Oil Production), the productive use of stranded gas (SPE 189181- New Approaches toGas Monetization in Nigeria), and related topics. Nathan’s public messages in speeches, panels, and his editorials while SPEPresident in 2016 urged the industry to mitigate the effects of climate change by minimizing methane emissions, reducing /eliminating flaring, and focusing on energy efficiency and conservation.

Level of aggregationGroup of products

Description of product/Group of productsBHGE technologies monitor, prevent, and/or contain oil and gas venting, flaring, and fugitive leaks, thereby avoiding emissions:JewelSuite software: supports planning and implementation of CO2 sequestration through its geomodelling capabilities as well asgeomechanics, ensuring proper containment of greenhouse gases Riser Speedhead™ and Time-Saver™ wellhead systems forunconventional shale wells: reduce installation time and require no in-field welding, ensuring containment of produced oil and gas,thereby reducing methane emissions Flare IQ Flare Optimization Software Solution: provides near-continuous feedback ondownstream facility flare performance, enhancing combustion and reducing emissions Preventive Corrosion Management (PCM):monitors for leaks in pipes and vessels, minimizing releases of oil and gas related to corrosion related failures STONE WALL™ V0-Rated Well Barriers achieve reliable, gas-tight wellbore isolation to minimize emissions, helping ensure total well control, enablingsafe operations, and protecting the environment.

Are these low-carbon product(s) or do they enable avoided emissions?Avoided emissions

Taxonomy, project or methodology used to classify product(s) as low-carbon or to calculate avoided emissionsOther, please specify (unknown)

% revenue from low carbon product(s) in the reporting year

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CommentAs indicated in the CDP Guidance document, methodologies to calculate avoided emissions are still in the infancy of theirdevelopment. We are currently in the process of developing and applying our own internal methodologies for quantifying avoidedemissions from our solutions. Baker Hughes (BHGE) has long contributed to advancements in the area of climate change throughthought leadership in addition to actively participating in industry working groups and efforts to reduce our direct and indirectcarbon footprint. In terms of thought leadership, BHGE’s Nathan Meehan (PhD Petroleum Engineering-Stanford) has analyzed thecarbon intensity of producing oil in different regions (Society of Petroleum Engineers (SPE) paper 191921-MS Comparing CarbonIntensity of Unconventional and Asia Pacific Oil Production), the productive use of stranded gas (SPE 189181- New Approaches toGas Monetization in Nigeria), and related topics. Nathan’s public messages in speeches, panels, and his editorials while SPEPresident in 2016 urged the industry to mitigate the effects of climate change by minimizing methane emissions, reducing /eliminating flaring, and focusing on energy efficiency and conservation.

Level of aggregationGroup of products

Description of product/Group of productsBHGE offers advanced sensor applications, data analytics, and robotic platforms that enable customers to monitor, control andoptimize their operations, thereby reducing, minimizing or avoiding emissions: Bently Nevada Condition Monitoring System:provides vibration monitoring equipment and sensors enabling greater operating efficiency resulting in less fuel usage, therebyreducing associated greenhouse gas emissions IntelliStream: allows for maximum utilization of resources across a field to minimizeproduction waste, thereby avoiding emissions. Asset Performance Management (APM): Ensures equipment is maintained andhealthy, resulting in less fuel usage and fewer unplanned shutdowns, reducing flaring, chemical or gas releaseshttps://www.bhge.com/sites/annualreport/technology-and-innovation.html?utm_medium=extranet_link&utm_campaign=infographic_gas_leadership&utm_source=landing_page&utm_content=AR_Tech&utm_term=

Are these low-carbon product(s) or do they enable avoided emissions?Avoided emissions

Taxonomy, project or methodology used to classify product(s) as low-carbon or to calculate avoided emissionsOther, please specify (unknown)

% revenue from low carbon product(s) in the reporting year

CommentAs indicated in the CDP Guidance document, methodologies to calculate avoided emissions are still in the infancy of theirdevelopment. We are currently in the process of developing and applying our own internal methodologies for quantifying avoidedemissions from our solutions. Baker Hughes (BHGE) has long contributed to advancements in the area of climate change throughthought leadership in addition to actively participating in industry working groups and efforts to reduce our direct and indirectcarbon footprint. In terms of thought leadership, BHGE’s Nathan Meehan (PhD Petroleum Engineering-Stanford) has analyzed thecarbon intensity of producing oil in different regions (Society of Petroleum Engineers (SPE) paper 191921-MS Comparing CarbonIntensity of Unconventional and Asia Pacific Oil Production), the productive use of stranded gas (SPE 189181- New Approaches toGas Monetization in Nigeria), and related topics. Nathan’s public messages in speeches, panels, and his editorials while SPEPresident in 2016 urged the industry to mitigate the effects of climate change by minimizing methane emissions, reducing /eliminating flaring, and focusing on energy efficiency and conservation.

C5. Emissions methodology

C5.1

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(C5.1) Provide your base year and base year emissions (Scopes 1 and 2).

Scope 1

Base year startJanuary 1 2012

Base year endDecember 31 2012

Base year emissions (metric tons CO2e)505000

CommentLegacy Baker Hughes data only. Baker Hughes and GE Oil and Gas merged into a new company, Baker Hughes, a GE companyon July 3, 2017. A new baseline will be established for the combined company based on 2018 emission data which will provide forone complete year of operating as BHGE.

Scope 2 (location-based)

Base year startJanuary 1 2012

Base year endDecember 31 2012

Base year emissions (metric tons CO2e)270000

CommentLegacy Baker Hughes data only. Baker Hughes and GE Oil and Gas merged into a new company, Baker Hughes, a GE companyon July 3, 2017. A new baseline will be established for the combined company based on 2018 emission data which will provide forone complete year of operating as BHGE.

Scope 2 (market-based)

Base year startJanuary 1 2014

Base year endDecember 13 2014

Base year emissions (metric tons CO2e)8023

CommentLegacy Baker Hughes UK data only.

C5.2

(C5.2) Select the name of the standard, protocol, or methodology you have used to collect activity data and calculate Scope1 and Scope 2 emissions.The Climate Registry: General Reporting Protocol

C6. Emissions data

C6.1

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(C6.1) What were your organization’s gross global Scope 1 emissions in metric tons CO2e?

Row 1

Gross global Scope 1 emissions (metric tons CO2e)383075

End-year of reporting period<Not Applicable>

CommentBased on combined totals for 2017 from GEOG and BHI. Different methodologies/data collection were followed based on eachindividual companies protocol. BHGE was not a combined company until 7/3/2017.

C6.2

(C6.2) Describe your organization’s approach to reporting Scope 2 emissions.

Row 1

Scope 2, location-basedWe are reporting a Scope 2, location-based figure

Scope 2, market-basedWe are reporting a Scope 2, market-based figure

CommentMarket based figure only applies to our Legacy Baker Hughes operations in the UK. We used a zero emission factor since wereceived Renewable Energy Guarantees of Origin (REGO) for the electricity purchased in the UK.

C6.3

(C6.3) What were your organization’s gross global Scope 2 emissions in metric tons CO2e?

Row 1

Scope 2, location-based323879

Scope 2, market-based (if applicable)317069

End-year of reporting period<Not Applicable>

CommentOur UK operations consumed 16,351 MWh (@6,800 metric tonnes CO2e) in the reporting year. For our location-based figure weused the grid average factor, while for our market-based figure we used a zero emission factor since we received RenewableEnergy Guarantees of Origin (REGO) for the electricity purchased in the UK.

C6.4

(C6.4) Are there any sources (e.g. facilities, specific GHGs, activities, geographies, etc.) of Scope 1 and Scope 2 emissionsthat are within your selected reporting boundary which are not included in your disclosure?Yes

C6.4a

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(C6.4a) Provide details of the sources of Scope 1 and Scope 2 emissions that are within your selected reporting boundarywhich are not included in your disclosure.

SourceRefrigerant Leakage

Relevance of Scope 1 emissions from this sourceEmissions are not relevant

Relevance of location-based Scope 2 emissions from this sourceEmissions are not relevant

Relevance of market-based Scope 2 emissions from this source (if applicable)Emissions are not relevant

Explain why the source is excludedLeakage of HFC refrigerants from BHGE owned and operated air conditioning, refrigeration and chilling systems are excludedbecause this leakage is regulated in the US and other countries and the emissions are considered to be insignificant.

SourceRemedial Operations

Relevance of Scope 1 emissions from this sourceEmissions are not relevant

Relevance of location-based Scope 2 emissions from this sourceEmissions are not relevant

Relevance of market-based Scope 2 emissions from this source (if applicable)Emissions are not relevant

Explain why the source is excludedRemedial operations operationally controlled by BHGE are excluded because emissions are considered to be insignificant.

C6.5

(C6.5) Account for your organization’s Scope 3 emissions, disclosing and explaining any exclusions.

Purchased goods and services

Evaluation statusRelevant, calculated

Metric tonnes CO2e2651

Emissions calculation methodologyHotel stays based on the sum of nights stayed (99,667) globally provided by 3rd party travel company and multiplied by emissionfactor of 26.6 kg CO2e per day resulting in 2,651 metric tonnes. Emissions were based on GHG Protocol for Scope 3 calculations,Category 1 for purchased goods and services. The result is a 20% decrease in hotel stay emissions compared to 2016 (3,300metric tonnes CO2e).

Percentage of emissions calculated using data obtained from suppliers or value chain partners100

ExplanationA 20% decrease in hotel stay emissions compared to 2016 (3,300 metric tonnes CO2e). This is the result of cost reducing efforts bylegacy Baker Hughes to limit travel to business essential only.

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Capital goods

Evaluation statusNot relevant, explanation provided

Metric tonnes CO2e0

Emissions calculation methodologyNot relevant

Percentage of emissions calculated using data obtained from suppliers or value chain partners0

ExplanationThis year we received no relevant data from our suppliers pertaining to their work with Baker Hughes. In most instances we wereinformed that these companies calculate their emissions as a whole and to refer to their CDP submittal. From 2014 and 2015, werequested our top suppliers of metals and chemicals to provide us with their Scope 1 and Scope 2 emissions that pertain to theirwork with Baker Hughes. Total metric tonnes provided were based on a very small percentage of suppliers who responded to ourrequest for data. Because of the challenge with obtaining this data, the emissions in this category are identified as insignificant. Therequest for emissions from our top suppliers will be re evaluated and implemented in the near future to improve our view of theemissions in this category.

Fuel-and-energy-related activities (not included in Scope 1 or 2)

Evaluation statusNot relevant, explanation provided

Metric tonnes CO2e0

Emissions calculation methodologyNot relevant

Percentage of emissions calculated using data obtained from suppliers or value chain partners0

ExplanationBHGE divested its North America pressure pumping operations at the end of 2016. We are no longer tracking the usage of off-road(dyed) diesel used during these operations.

Upstream transportation and distribution

Evaluation statusRelevant, calculated

Metric tonnes CO2e73700

Emissions calculation methodologyEstimated emissions from air/ocean shipments via global logistics and distribution

Percentage of emissions calculated using data obtained from suppliers or value chain partners100

ExplanationGlobal logistics and distribution shipped more than 147,000 metric tonnes of materials via air and ocean shipments. Internalcalculation from the group was performed and emission submitted.

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Waste generated in operations

Evaluation statusRelevant, calculated

Metric tonnes CO2e350

Emissions calculation methodologyLimited analysis of waste generated in operations. This was calculated using the EPA’s Warm v(14) tool to estimate wastematerials generated in 2017 that would have been sent a landfill and not recycled. These materials are mostly plant trash,construction debris, mixed plastic, and other non-hazardous material that was neither recycled nor disposed of by a wastemanagement specialist.

Percentage of emissions calculated using data obtained from suppliers or value chain partners100

ExplanationLimited analysis of collected waste material data. This looks at materials that were not recycled and would be landfilled as waste.Wastewater comprises 98% of all our generated waste and would be treated internally or by third party, and is not included in thisyear’s calculations

Business travel

Evaluation statusRelevant, calculated

Metric tonnes CO2e108661

Emissions calculation methodologyThe data used for the calculation was miles flown for business travel. CO2 and GHG (Green House Gases) calculation is based onDEFRA 2012 conversion factors.

Percentage of emissions calculated using data obtained from suppliers or value chain partners100

ExplanationThe data represents combined BHI and GEOG air travel emissions. This represents an increase from the previous year primarilydue to: the increase of scope (combining two large organizations), travel required to integrate both companies, and increase inbusiness operations travel.

Employee commuting

Evaluation statusRelevant, calculated

Metric tonnes CO2e14334

Emissions calculation methodologyEmissions for employee commuting in the USA were based on guidance and emission factors taken for the U.S. EPA ClimateLeaders GHG Inventory Protocol, “Optional Emissions from Commuting, Business Travel and Product Transport,” available at:http://www.epa.gov/stateply/documents/resources/commute_travel_product.pdf Average distance traveled for commuters wasapproximately 15 miles. This estimate excludes those who use fleet vehicles, van pool or buses.

Percentage of emissions calculated using data obtained from suppliers or value chain partners25

ExplanationThe data was based on the number of employees working in the US and we subtracted the number of employees with companyissued vehicles. An estimated commute of 15 miles was used per day for 26 weeks. The total mileage was used to calculate CO2efor passenger vehicles and light trucks. The average of the two was used to estimate our employee commuting emissions.

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Upstream leased assets

Evaluation statusNot relevant, explanation provided

Metric tonnes CO2e0

Emissions calculation methodologyNot Relevant

Percentage of emissions calculated using data obtained from suppliers or value chain partners0

ExplanationBHGE does not own any upstream assets.

Downstream transportation and distribution

Evaluation statusRelevant, calculated

Metric tonnes CO2e8780

Emissions calculation methodologyBHGE does a partial calculation of third party shipping companies in the U.S. only. BHGE uses third party transportation by railroadto deliver various goods to our customers within the US. Emissions data was collected from the third party vendor but has not beenverified for accuracy. Emission Factors from The Climate Registry General Reporting Protocol were used which includes CarbonDioxide (CO2) or Carbon Dioxide Equivalent (CO2e), Methane (CH4), and Nitrous Oxide (N2O).

Percentage of emissions calculated using data obtained from suppliers or value chain partners100

ExplanationThis was the sixth year this category was evaluated and emissions data collected (for legacy BHI only). In 2017 our rail usageincreased by 2.8 million miles, resulting in an increase in our overall rail emissions. However, we realized a total savings of 38,510metric tons when compared to the carbon footprint of comparative truck shipments. Furthermore, we continue to utilize bulktransport and other lower emission forms of transportation and distribution.

Processing of sold products

Evaluation statusNot relevant, explanation provided

Metric tonnes CO2e0

Emissions calculation methodologyNot Relevant

Percentage of emissions calculated using data obtained from suppliers or value chain partners0

ExplanationMaterials from third parties represent less than 5% of sold products

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Use of sold products

Evaluation statusNot relevant, explanation provided

Metric tonnes CO2e0

Emissions calculation methodologyNot Relevant

Percentage of emissions calculated using data obtained from suppliers or value chain partners0

ExplanationBHGE products and the carbon footprint of equipment such as drill bits and tools is not tracked or reported to us by our customers.

End of life treatment of sold products

Evaluation statusNot relevant, explanation provided

Metric tonnes CO2e0

Emissions calculation methodologyNot Relevant

Percentage of emissions calculated using data obtained from suppliers or value chain partners0

ExplanationThe end of life treatment of our sold products such as downhole tools has a minimal carbon footprint.

Downstream leased assets

Evaluation statusNot relevant, explanation provided

Metric tonnes CO2e0

Emissions calculation methodologyNot Relevant

Percentage of emissions calculated using data obtained from suppliers or value chain partners0

ExplanationBHGE does not operate any downstream leased assets.

Franchises

Evaluation statusNot relevant, explanation provided

Metric tonnes CO2e0

Emissions calculation methodologyNot Relevant

Percentage of emissions calculated using data obtained from suppliers or value chain partners0

ExplanationBHGE does not operate any franchises as defined in the GHG Scope 3 Accounting and Reporting Standard.

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Investments

Evaluation statusNot relevant, explanation provided

Metric tonnes CO2e0

Emissions calculation methodologyNot relevant

Percentage of emissions calculated using data obtained from suppliers or value chain partners0

ExplanationBHGE does not invest in the external supply chain.

Other (upstream)

Evaluation statusNot relevant, explanation provided

Metric tonnes CO2e0

Emissions calculation methodologyNot relevant

Percentage of emissions calculated using data obtained from suppliers or value chain partners0

ExplanationNo other upstream categories have been identified as being relevant.

Other (downstream)

Evaluation statusNot relevant, explanation provided

Metric tonnes CO2e0

Emissions calculation methodologyNot relevant

Percentage of emissions calculated using data obtained from suppliers or value chain partners0

ExplanationNo other downstream categories have been identified as being relevant.

C6.7

(C6.7) Are carbon dioxide emissions from biologically sequestered carbon relevant to your organization?Yes

C6.7a

(C6.7a) Provide the emissions from biologically sequestered carbon relevant to your organization in metric tons CO2.2000

C6.10

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(C6.10) Describe your gross global combined Scope 1 and 2 emissions for the reporting year in metric tons CO2e per unitcurrency total revenue and provide any additional intensity metrics that are appropriate to your business operations.

Intensity figure0.000032

Metric numerator (Gross global combined Scope 1 and 2 emissions)706954

Metric denominatorunit total revenue

Metric denominator: Unit total22000000000

Scope 2 figure usedLocation-based

% change from previous year7

Direction of changeDecreased

Reason for changePercent change based on BHGE combined GHG decrease from previous year.

Intensity figure11.046

Metric numerator (Gross global combined Scope 1 and 2 emissions)706954

Metric denominatorfull time equivalent (FTE) employee

Metric denominator: Unit total64000

Scope 2 figure usedLocation-based

% change from previous year23.39

Direction of changeDecreased

Reason for changeBHGE combined headcount plus overall emissions reduction

C7. Emissions breakdowns

C7.1

(C7.1) Does your organization have greenhouse gas emissions other than carbon dioxide?Yes

C7.1a

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(C7.1a) Break down your total gross global Scope 1 emissions by greenhouse gas type and provide the source of each usedgreenhouse warming potential (GWP).

Greenhouse gas Scope 1 emissions (metric tons of CO2e) GWP Reference

CO2 366529 Other, please specify (EPA eGRID 2014)

CH4 61 Other, please specify (EPA eGRID 2014)

N2O 9 Other, please specify (EPA eGRID 2014)

HFCs 16476 Other, please specify (EPA eGRID 2014)

Please select Please select

C7.2

(C7.2) Break down your total gross global Scope 1 emissions by country/region.

Country/Region Scope 1 emissions (metric tons CO2e)

North America 181027

Other, please specify (Rest of world) 202048

C7.3

(C7.3) Indicate which gross global Scope 1 emissions breakdowns you are able to provide.By business division

C7.3a

(C7.3a) Break down your total gross global Scope 1 emissions by business division.

Business division Scope 1 emissions (metric ton CO2e)

GE Oil and Gas 151563

Baker Hughes 231512

C7.5

(C7.5) Break down your total gross global Scope 2 emissions by country/region.

Country/Region Scope 2, location-based (metric tonsCO2e)

Scope 2, market-based (metric tonsCO2e)

Purchased and consumedelectricity, heat, steam orcooling (MWh)

Purchased and consumed low-carbon electricity, heat,steam or cooling accounted in market-based approach(MWh)

North America 241243 241243 432253 0

United Kingdom ofGreat Britain andNorthern Ireland

20757 13947 45851 16351

Europe, the MiddleEast, Africa and Russia(EMEAR)

40468 40468 116189 0

Latin America (LATAM) 7720 7720 24324 0

Asia, Australasia 13691 13691 20413 0

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C7.6

(C7.6) Indicate which gross global Scope 2 emissions breakdowns you are able to provide.By business division

C7.6a

(C7.6a) Break down your total gross global Scope 2 emissions by business division.

Business division Scope 2, location-based emissions (metric tons CO2e) Scope 2, market-based emissions (metric tons CO2e)

GE Oil and Gas 143162 143162

Baker Hughes 180716 173488

C7.9

(C7.9) How do your gross global emissions (Scope 1 and 2 combined) for the reporting year compare to those of theprevious reporting year?Decreased

C7.9a

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(C7.9a) Identify the reasons for any change in your gross global emissions (Scope 1 and 2 combined) and for each of themspecify how your emissions compare to the previous year.

Change inemissions(metrictonsCO2e)

Directionof change

Emissionsvalue(percentage)

Please explain calculation

Change inrenewableenergyconsumption

1490 Decreased 18 The emissions saved from using 100% wind energy in the UK decreased 1,490 metric tonnes compared tothe previous year. This is a result of decreased facility production in 2017.

Otheremissionsreductionactivities

10150 Decreased 2 In 2017 Baker Hughes eliminated an estimated 10,150 metric tons CO2e through various energy savingsprojects at our facilities. Our 2017 facility emissions total was 550,396 metric tons from electricity, natural gas,off road diesel, propane, and fuel oil usage. (10,150/550,396)*100=6.3%

Divestment 0 No change 0 Did not have any divestments that affected emissions in 2017

Acquisitions 0 No change 0 Did not have any acquisitions that affected emissions in 2017

Mergers 228876 Increased 48 48% increase due to merger with GE Oil and Gas

Change inoutput

19500 Decreased 0.3 Of facilities reporting energy consumption in 2016 and 2017, 550,396 metric tonnes generated in 2017compared to 579,896 in 2016 due to decline in revenue and work activity. 550,396-579,896=34,000 lessmetric tons in 2017 from locations that reported both years. @ 10000 tonnes saved from energy projects29,500-10,000=19,500 tonnes removed due to output. (19,500/706,447)*100 =.3%

Change inmethodology

0 No change 0 No change

Change inboundary

46710 Decreased 7 There were a number of changes to the company structure in 2017. Several facilities were either closed, orconsolidated with other locations and product lines and the number of employees changed frequently atthese location. These consolidations in some cases resulted in greater usage per center, yet reduced the totalnumber of facilities, and made our facilities more efficient overall. Approximately 10,000 tonnes CO2e wasreported last year from facilities not reporting this year due to closure or facility consolidation. Additionally, wereduced our vehicle fleet total by approximately 1,400 vehicles resulting in a 19% decrease in Scope 1emissions. Fleet Reductions 155,530-192,240 (2016 total)= -36,710 tonnes 36,710 +10,000=46,710 lesstonnes due to boundary changes (46,710/706,447)*100=7%

Change inphysicaloperatingconditions

0 No change 0 Did not have any changes in physical operating conditions in 2017.

Unidentified 0 No change 0 No “unidentified” activity in 2017.

Other 0 No change 0 No change

C7.9b

(C7.9b) Are your emissions performance calculations in C7.9 and C7.9a based on a location-based Scope 2 emissions figureor a market-based Scope 2 emissions figure?Location-based

C8. Energy

C8.1

(C8.1) What percentage of your total operational spend in the reporting year was on energy?More than 10% but less than or equal to 15%

C8.2

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(C8.2) Select which energy-related activities your organization has undertaken.

Indicate whether your organization undertakes this energy-related activity

Consumption of fuel (excluding feedstocks) Yes

Consumption of purchased or acquired electricity Yes

Consumption of purchased or acquired heat No

Consumption of purchased or acquired steam No

Consumption of purchased or acquired cooling No

Generation of electricity, heat, steam, or cooling Yes

C8.2a

(C8.2a) Report your organization’s energy consumption totals (excluding feedstocks) in MWh.

Heating value MWh from renewablesources

MWh from non-renewablesources

Total MWh

Consumption of fuel (excluding feedstock) LHV (lower heatingvalue)

0 1214010 1214010

Consumption of purchased or acquired electricity <Not Applicable> 157488 419752 649240

Consumption of purchased or acquired heat <Not Applicable> <Not Applicable> <Not Applicable> <NotApplicable>

Consumption of purchased or acquired steam <Not Applicable> <Not Applicable> <Not Applicable> <NotApplicable>

Consumption of purchased or acquired cooling <Not Applicable> <Not Applicable> <Not Applicable> <NotApplicable>

Consumption of self-generated non-fuel renewableenergy

<Not Applicable> 0 <Not Applicable> 0

Total energy consumption <Not Applicable> 157488 1633762 1863250

C8.2b

(C8.2b) Select the applications of your organization’s consumption of fuel.

Indicate whether your organization undertakes this fuel application

Consumption of fuel for the generation of electricity Yes

Consumption of fuel for the generation of steam No

Consumption of fuel for the generation of cooling No

Consumption of fuel for co-generation or tri-generation No

C8.2c

(C8.2c) State how much fuel in MWh your organization has consumed (excluding feedstocks) by fuel type.

Fuels (excluding feedstocks)Natural Gas

Heating valueLHV (lower heating value)

Total fuel MWh consumed by the organization1214010

MWh fuel consumed for the self-generation of electricity

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0

MWh fuel consumed for self-generation of heat0

MWh fuel consumed for self-generation of steam<Not Applicable>

MWh fuel consumed for self-generation of cooling<Not Applicable>

MWh fuel consumed for self- cogeneration or self-trigeneration<Not Applicable>

Fuels (excluding feedstocks)Diesel

Heating valueLHV (lower heating value)

Total fuel MWh consumed by the organization35232

MWh fuel consumed for the self-generation of electricity0

MWh fuel consumed for self-generation of heat0

MWh fuel consumed for self-generation of steam<Not Applicable>

MWh fuel consumed for self-generation of cooling<Not Applicable>

MWh fuel consumed for self- cogeneration or self-trigeneration<Not Applicable>

Fuels (excluding feedstocks)Propane Gas

Heating valueLHV (lower heating value)

Total fuel MWh consumed by the organization2997

MWh fuel consumed for the self-generation of electricity0

MWh fuel consumed for self-generation of heat0

MWh fuel consumed for self-generation of steam<Not Applicable>

MWh fuel consumed for self-generation of cooling<Not Applicable>

MWh fuel consumed for self- cogeneration or self-trigeneration<Not Applicable>

Fuels (excluding feedstocks)Residual Fuel Oil

Heating valueLHV (lower heating value)

Total fuel MWh consumed by the organization

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11362

MWh fuel consumed for the self-generation of electricity0

MWh fuel consumed for self-generation of heat0

MWh fuel consumed for self-generation of steam<Not Applicable>

MWh fuel consumed for self-generation of cooling<Not Applicable>

MWh fuel consumed for self- cogeneration or self-trigeneration<Not Applicable>

C8.2d

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(C8.2d) List the average emission factors of the fuels reported in C8.2c.

Diesel

Emission factor73.96

Unitkg CO2 per million Btu

Emission factor sourceThe Climate Registry 2018 Default Emission Factors Table 12.1 U.S. Default Factors for Calculating CO2 Emissions fromCombustion of Fossil Fuel and Biomass The Climate Registry 2018 Default Emission Factors Table 12.2 Canadian Default Factorsfor Calculating CO2 Emissions from Combustion of Fossil Fuel and Biomass

CommentAverage emission factor calculated based on average CO2 emission factor for North American Countries

Natural Gas

Emission factor57.3

Unitkg CO2 per million Btu

Emission factor sourceThe Climate Registry 2018 Default Emission Factors Table 12.1 U.S. Default Factors for Calculating CO2 Emissions fromCombustion of Fossil Fuel and Biomass

Comment

Propane Gas

Emission factor62.87

Unitkg CO2 per million Btu

Emission factor sourceThe Climate Registry 2018 Default Emission Factors Table 12.1 U.S. Default Factors for Calculating CO2 Emissions fromCombustion of Fossil Fuel and Biomass

Comment

Residual Fuel Oil

Emission factor80.46

Unitkg CO2 per million Btu

Emission factor sourceThe Climate Registry 2018 Default Emission Factors Table 12.1 U.S. Default Factors for Calculating CO2 Emissions fromCombustion of Fossil Fuel and Biomass

Comment

C8.2e

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(C8.2e) Provide details on the electricity, heat, steam, and cooling your organization has generated and consumed in thereporting year.

Total Grossgeneration (MWh)

Generation that is consumed by theorganization (MWh)

Gross generation fromrenewable sources (MWh)

Generation from renewable sources that isconsumed by the organization (MWh)

Electricity 428 428 0 0

Heat 0 0 0 0

Steam 0 0 0 0

Cooling 0 0 0 0

C8.2f

(C8.2f) Provide details on the electricity, heat, steam and/or cooling amounts that were accounted for at a low-carbonemission factor in the market-based Scope 2 figure reported in C6.3.

Basis for applying a low-carbon emission factorEnergy attribute certificates, Guarantees of Origin

Low-carbon technology typeWind

MWh consumed associated with low-carbon electricity, heat, steam or cooling16351

Emission factor (in units of metric tons CO2e per MWh)0

CommentFor electricity use in the United Kingdom, all MWh consumed at legacy Baker Hughes sites were generated from wind farms

C9. Additional metrics

C9.1

(C9.1) Provide any additional climate-related metrics relevant to your business.

C10. Verification

C10.1

(C10.1) Indicate the verification/assurance status that applies to your reported emissions.

Verification/assurance status

Scope 1 Third-party verification or assurance process in place

Scope 2 (location-based or market-based) Third-party verification or assurance process in place

Scope 3 Third-party verification or assurance process in place

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C10.1a

(C10.1a) Provide further details of the verification/assurance undertaken for your Scope 1 and/or Scope 2 emissions andattach the relevant statements.

ScopeScope 1

Verification or assurance cycle in placeAnnual process

Status in the current reporting yearComplete

Type of verification or assuranceLimited assurance

Attach the statement2018_BHGE GHG Verification Statement for 2017 emissions.pdf

Page/ section referenceSee page 2 and page 3 of the attached document.

Relevant standardISO14064-3

Proportion of reported emissions verified (%)72

ScopeScope 2 location-based

Verification or assurance cycle in placeAnnual process

Status in the current reporting yearComplete

Type of verification or assuranceLimited assurance

Attach the statement2018_BHGE GHG Verification Statement for 2017 emissions.pdf

Page/ section referenceSee page 2 and page 3 of the attached document.

Relevant standardISO14064-3

Proportion of reported emissions verified (%)71

ScopeScope 2 market-based

Verification or assurance cycle in placeAnnual process

Status in the current reporting yearComplete

Type of verification or assuranceLimited assurance

Attach the statement2018_BHGE GHG Verification Statement for 2017 emissions.pdfRenewable Energy Evidence Report -201617 Baker Hughes Limited.pdf

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Page/ section referenceSee page 2 and page 3 of the verification statement and page 2 of the renewable energy evidence report.

Relevant standardISO14064-3

Proportion of reported emissions verified (%)70

C10.1b

(C10.1b) Provide further details of the verification/assurance undertaken for your Scope 3 emissions and attach the relevantstatements.

ScopeScope 3- at least one applicable category

Verification or assurance cycle in placeAnnual process

Status in the current reporting yearComplete

Attach the statement2018_BHGE GHG Verification Statement for 2017 emissions.pdf

Page/section referenceSee page 2 and page 3 of the attached document.

Relevant standardISO14064-3

C10.2

(C10.2) Do you verify any climate-related information reported in your CDP disclosure other than the emissions figuresreported in C6.1, C6.3, and C6.5?No, we do not verify any other climate-related information reported in our CDP disclosure

C11. Carbon pricing

C11.1

(C11.1) Are any of your operations or activities regulated by a carbon pricing system (i.e. ETS, Cap & Trade or Carbon Tax)?Yes

C11.1a

(C11.1a) Select the carbon pricing regulation(s) which impacts your operations.EU ETSOther carbon tax, please specify (CRC - Carbon Reduction Commitment)

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C11.1b

(C11.1b) Complete the following table for each of the emissions trading systems in which you participate.

EU ETS

% of Scope 1 emissions covered by the ETS20.07

Period start dateApril 6 2017

Period end dateApril 11 2018

Allowances allocated7473

Allowances purchased12000

Verified emissions in metric tons CO2e23517

Details of ownershipFacilities we own and operate

CommentThe Corporate Enterprise receives the information from the various location covered under this system. The data is not aggregatedat the enterprise level since BHGE has multiple legal entities across the European Union.

C11.1c

(C11.1c) Complete the following table for each of the tax systems in which you participate.

Other carbon tax, please specify

Period start dateApril 1 2017

Period end dateMarch 31 2018

% of emissions covered by tax66

Total cost of tax paid479243

CommentThe 66% of emissions covered by tax is the percentage of the total emission in the UK.

C11.1d

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(C11.1d) What is your strategy for complying with the systems in which you participate or anticipate participating?

BHGE operates in approximately 120 countries globally and is subject to a wide variety of laws, regulations and government policiesthat may change in significant ways. We work with the highest integrity and commitment to compliance everywhere we work. BHGEhas identified certain operations and activities that are regulated by carbon pricing regimes, and we will work to comply with anyapplicable systems now and in the future.

For example, in 2011, we registered our facilities in the UK and evaluated the requirements of the UK Carbon Reduction Commitment(CRC) scheme in great detail. Processes were developed for monitoring and reporting energy use at relevant facilities in compliancewith regulatory requirements. 2017 was our seventh year to participate in CRC. Energy reduction efforts in the UK are ongoing withsignificant improvements achieved to date. Proactive efforts have included the continuation of energy awareness campaigns andimplementation of energy improvement projects, as well as purchased electricity in the UK being 100% from a renewable source(wind). Executive management is supportive of energy improvement projects where business value is identified.

For the EU ETS, each year the company surrenders enough allowances to cover its emissions to avoid heavy fines which can beimposed. Any spare allowances are either kept to cover any future needs or sold to another company that is short of allowances.

C11.2

(C11.2) Has your organization originated or purchased any project-based carbon credits within the reporting period?No

C11.3

(C11.3) Does your organization use an internal price on carbon?No, but we anticipate doing so in the next two years

C12. Engagement

C12.1

(C12.1) Do you engage with your value chain on climate-related issues?Yes, our suppliersYes, our customersYes, other partners in the value chain

C12.1a

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(C12.1a) Provide details of your climate-related supplier engagement strategy.

Type of engagementInformation collection (understanding supplier behavior)

Details of engagementCollect climate change and carbon information at least annually from suppliers

% of suppliers by number5

% total procurement spend (direct and indirect)45

% Scope 3 emissions as reported in C6.560

Rationale for the coverage of your engagementEngagement Process: Baker Hughes engages governments, customers, suppliers, employees, communities, andnongovernmental organizations on issues material to our investments around the world. Specifically, we engage trade and businessassociations, customers, suppliers, employees, communities, and nongovernmental organizations on issues of mutual concern. OurSuppliers: Baker Hughes evaluates the policies and practices of suppliers with regard to environmental performance. For 2017, werequested specific emissions data from our top suppliers of rail transportation services, and global travel provider (air, car rental andhotel data). Emissions data received from our suppliers was allocated based on shipments and revenue earned from BakerHughes.

Impact of engagement, including measures of successBaker Hughes evaluates the policies and practices of suppliers with regard to environmental performance in addition to collecteddata from several of our top suppliers as indicated in our rationale for engagement. Measurement is based on the number ofrequests received on allocated emissions, which in 2017 was 60% of suppliers requested.

Comment

C12.1b

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(C12.1b) Give details of your climate-related engagement strategy with your customers.

Type of engagementOther, please specify (Reports fuel usage at well site)

Details of engagement<Not Applicable>

Size of engagement1

% Scope 3 emissions as reported in C6.53

Please explain the rationale for selecting this group of customers and scope of engagementOur Customers: During previous years Baker Hughes has reported fuel usage from our operations on well sites to customers uponrequest. However, BHGE divested its North America pressure pumping operations at the end of 2016. As a result, we are no longertracking the usage of dyed diesel used during these operations. In addition, we have provided emissions data to customers via theCDP supply chain program, when requested.

Impact of engagement, including measures of successNo response necessary, as requests from customers were not received for 2017 reporting year.

Type of engagementEducation/information sharing

Details of engagementRun an engagement campaign to education customers about your climate change performance and strategy

Size of engagement1

% Scope 3 emissions as reported in C6.50.2

Please explain the rationale for selecting this group of customers and scope of engagementOver the past 2 years we have attended a Supplier Sustainability Forum conducted by ConocoPhillips to engage, share and learnbest practices, as well as understand the integration of sustainability in the oil & gas business and supply chains.

Impact of engagement, including measures of successThis forum is attended by several of our customers and suppliers and topics of discussion include: Innovation and Efficiency: BestPractices in Sustainability; Processes, Planning, and Goals and Integrating Sustainability into the Business. Measurement ofsuccess is determined on the share of information and processes used by similar organizations in integrating climate change intothe business.

C12.1c

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(C12.1c) Give details of your climate-related engagement strategy with other partners in the value chain.

BHGE has partnered with Soltage, a renewable energy provided, in recent years to develop a solar farm as part of its commitment tocreate sustainable energy development and its goal of reducing greenhouse gases. The solar farm uses approximately 25 of the 134acres owned by Baker Hughes, a GE company. Soltage's installation consists of a 4.75-megawatt (MW) system “Bird Machine SolarFarm” on a brownfield located on the former Bird Machine Company industrial site at 100 Neponset St. in Walpole, MA. “Turningbrownfields into brightfields is an ideal solution for many municipalities like Walpole across Massachusetts and across the country,”said Soltage CEO Jesse Grossman. “Walpole has shown real environmental and economic leadership by enabling this project whichwill help spur local economic development and create strong environmental benefits. By installing solar on brownfields we’re loweringcosts for local communities, creating jobs and contributing to the local economy.” The solar farm is made up of 14,600 panels thatcan produce 6 million kWh of energy per year, enough to power 623 homes per year and offset almost 9.3 million pounds of CO2,according to Grossman. “In addition to increased revenue obtained from siting the solar farm on otherwise unused land within itsborders, the town of Walpole benefits from significant reductions in its annual electricity expenditure. Through increased revenue anddecreased costs, more money is available for programs that directly benefit local residents,” Gregory said.

An article detailing the project can be found at the following link: https://www.solarpowerworldonline.com/2017/09/soltage-completes-4-75-mw-solar-farm-brownfield-massachusetts/

C12.3

(C12.3) Do you engage in activities that could either directly or indirectly influence public policy on climate-related issuesthrough any of the following?Direct engagement with policy makersTrade associations

C12.3a

(C12.3a) On what issues have you been engaging directly with policy makers?

Focus oflegislation

Corporateposition

Details of engagement Proposed legislative solution

Other,pleasespecify(Tradeassociations)

Support BHGE participates in industryassociations that engage with policymakers on legislation intended toreduce greenhouse gasemissions.This includes participationin technical roundtables, submittal oftechnical publications; peer review ofpublications and disclosures tocustomers, investors and the generalpublic through our website(www.bhge.com).

Through industry associations, we advocate for effective controls that do not add undue burden tothe business.

Regulationof methaneemissions

Support Baker Hughes is working with IOGPin a joint working relationship withIPIECA to discuss the concerns overmethane emissions and engageregulators on potential regulatorydevelopments. See link to IPIECAMethane Factsheet: –www.ipieca.org/publication/exploring-methane-emissions

On May 12, 2016 EPA issued a draft Information Collection Request (ICR) to require oil andnatural gas companies to provide extensive information needed to develop regulations to reducemethane emissions from existing oil and gas sources. In addition, the agency announced plans toissue a Request for Information to seek information on innovative strategies that can accuratelyand cost-effectively locate, measure and mitigate methane emissions. Mitigating emissions ofmethane will provide additional opportunities for society. The industry has been working for manyyears to reduce methane emissions through mandatory and voluntary programmes, including theNatural Gas STAR Program and the Global Methane Initiative. Individual companies inconjunction with industry will continue to explore and take opportunities to reduce methaneemissions, along with other greenhouse gases, to play its role in managing the risks of climatechange.

Mandatorycarbonreporting

Neutral Representatives of Baker Hughesparticipate in public meetings andconferences at which regulatorsinteract with industry and alsothrough direct comment on rule-making. This includes rule-making onmandatory carbon reporting.

By providing comment on proposed rule-making and engaging directly with our regulatorystakeholders, we seek to provide accurate information on our industry's commitments, efforts, andprogress related to carbon footprint reporting. We advocate for effective controls that do not addundue burden to the business.

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C12.3b

(C12.3b) Are you on the board of any trade associations or do you provide funding beyond membership?Yes

C12.3c

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(C12.3c) Enter the details of those trade associations that are likely to take a position on climate change legislation.

Trade associationInternational Association of Oil & Gas Producers (IOGP) IOGP’s Management Committee is responsible for the Association’s overallstrategy and direction. It provides guidance on policy, work plans, finance and communications and it ensures that the organizationkeep to their Articles of Association.

Is your position on climate change consistent with theirs?Consistent

Please explain the trade association’s positionIOGP is dedicated to identifying and spreading good environmental practice wherever the upstream industry operates. Their workincludes: • Ensuring continued access to new and known hydrocarbon sources • Environmental management and reporting •Gaseous emissions management • Monitoring regulatory developments and developing advocacy positions IOGP recognizes therisks of climate change due to rising greenhouse gas emissions and has welcomed the Paris Agreement. The Association supportsthe international community’s commitment to address the global challenge of climate change and also believes that the oil and gasindustry is very much a part of the solution to this challenge, which can be addressed while meeting society’s future energy needs.The long-term objective of climate change policy should be to reduce the risk of serious impacts on society and ecosystems, whilerecognizing the importance of reliable and affordable energy to society. IOGP is a leading force behind GasNaturally, a partnershipof six organizations that extend the length of the natural gas value chain. GasNaturally represents more than 130 companies.GasNaturally aims to showcase the potential that natural gas can play in building a cost-effective and sustainable energy mix. Itseeks to help policy makers formulate a clear vision on how to face the challenges ahead, relying on natural gas as a safe, secureand reliable energy source. Natural gas can: • Help achieve the transition to a low-carbon energy system cost-effectively • Providethe cheapest and fastest way to achieve significant CO2 emission reductions • Complement renewables by providing essentialback-up capacity to balance out the variability of some renewable sources For these reasons, gas will be a key player in the longterm. Without it, the shift to a low-carbon energy system could seriously compromise quality of life by limiting access to affordableheat, light and mobility for households and businesses alike.

How have you, or are you attempting to, influence the position?BHGE ‘s Chief Health, Safety and Environment (HSE) Office is an active member on the Management Committee and BHGE’sGlobal Environmental and Sustainability Director co-chairs the Environmental Committee. BHGE regularly participates and reviewskey position statements with internal leadership.

Trade associationIPIECA - the global oil and gas industry association for environmental and social issues IPIECA is governed by a GeneralCommittee comprised of senior representatives from IPIECA member companies and associations. BHGE’s Global Environmental& Sustainability Director is the company representative for IPIECA’s General Committee and is also a member of the EnvironmentalGroup that provides direction to the various working groups. The BHGE Global Environment and Sustainability Director participatesin the Climate Change Working Group, and several other company representatives participate in the Social Responsibility,Reporting and Communications work groups, among others.

Is your position on climate change consistent with theirs?Consistent

Please explain the trade association’s positionIPIECA acts as a catalyst to bring experts together to work on issues such as greenhouse gas (GHG) emissions, energy efficiencyand reducing the impact of fuel emissions. By doing this, we help the oil and gas industry manage its environmental impact andaddress climate risks while it works to meet the increasing demand for energy. IPIECA is helping the industry be part of the climatechange solution by developing industry guidelines on GHG reporting, a series of good practices on energy efficiency andgreenhouse gas management, and an ongoing record of convening expert workshops to explore key climate-related issues,informing the industry and stakeholders. Conserving the energy and greenhouse gases (GHGs) used to produce oil and gas canmake a major contribution to moving the world onto a more sustainable energy path. Often, the most economical method ofreducing GHG emissions is to reduce energy consumed. This is because the easiest emissions to control are the ones neverproduced. For this reason, IPIECA works with the industry to help reduce emissions with sharing of good practices, tools andthrough providing opportunities for sharing knowledge. IPIECA develops industry best practice and the promotion of technologicaland management solutions to reduce GHGs (for oil and gas this is mainly CO2 and methane) across the production, refining andtransportation of oil and gas. For emissions from our operations, management largely means energy conservation or efficiencymeasures, reducing gas flaring and managing the emissions of methane.

How have you, or are you attempting to, influence the position?BHGE’s Global Environmental & Sustainability Director is the company representative for IPIECA’s General CommitteeEnvironmental Group and is also an active member of the Climate Change Working Group. BHGE also has several companyrepresentatives that are part of the following additional working groups / task forces: Social Responsibility, Reporting andCommunications. BHGE regularly participates and reviews key position statements with internal leadership.

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C12.3f

(C12.3f) What processes do you have in place to ensure that all of your direct and indirect activities that influence policy areconsistent with your overall climate change strategy?

BHGE climate change strategy is set and approved at the executive level and is part of our overall performance goals and objectives.Each year, the Executive Leadership Team agrees on a plan to improve our environmental performance by setting key performanceindicator goals as well as actionable tasks .

BHGE supports policies that promote both lower carbon emissions and sustainable economic growth. Policies and regulations tohelp reduce carbon emissions are essential to drive technology development and deployment. Fairness to consumers,environmental integrity, cost-effectiveness, sound science and technology neutrality should be the guiding principles for arriving atany national strategy.

BHGE has published information related to climate change and reduced GHG emissions (see 2017 HSE & SR Report and the BHGEClimate & Energy webpage at https://www.bhge.com/corporate-responsibility/planet) internally and externally to the organization. Thereport and website describes our commitment to managing climate change risks and the ways in which we do that. This document isused to inform members of the organization that interact with policy-makers on BHGE's position on climate change.

BHGE offers customers a fullstream portfolio of integrated gas technologies, solutions and services that improve productivity andreduces carbon footprint. Visit our website for additional detail: https://www.bhge.com/fullstream/whats-new-fullstream/leadership-gas

In addition, we have established an enterprise goal for the reduction of energy consumption and associated GHG emissions. This issupported by a global procedure on energy conservation aligned with the requirements of the energy management standard, ISO50001, which is contained within the Health, Safety and Environment Management System.

C12.4

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(C12.4) Have you published information about your organization’s response to climate change and GHG emissionsperformance for this reporting year in places other than in your CDP response? If so, please attach the publication(s).

PublicationIn voluntary sustainability report

StatusComplete

Attach the document2017 FINAL BHGE HSESR Report.pdf

Content elementsStrategyRisks & opportunitiesEmissions figuresEmission targetsOther metrics

PublicationIn mainstream reports

StatusComplete

Attach the documentBHGE_2017_AR_Full.pdf

Content elementsGovernanceStrategyRisks & opportunitiesOther metrics

C14. Signoff

C-FI

(C-FI) Use this field to provide any additional information or context that you feel is relevant to your organization's response.Please note that this field is optional and is not scored.

C14.1

(C14.1) Provide details for the person that has signed off (approved) your CDP climate change response.

Job title Corresponding job category

Row 1 Chief Health, Safety and Environment (HSE) Officer Other C-Suite Officer

Submit your response

In which language are you submitting your response?English

CDP Page of 5756

Page 57: Baker Hughes, a GE Company - Climate Change 2018 · 2019. 7. 1. · Baker Hughes, a GE Company - Climate Change 2018 C0. Introduction C0.1 (C0.1) Give a general description and introduction

Please confirm how your response should be handled by CDP

Public or Non-Public Submission I am submitting to

I am submitting my response Public Investors

Please confirm belowI have read and accept the applicable Terms

CDP Page of 5757