Baker Hughes Launches Global Sustainability Solutions Centre in Malaysia, Elevates ESG Data and Decarbonisation Support

• Centre to act as centralised resource that provides and verifies ESG data
• Company’s own “Carbon Out” program delivers nearly 30% reduction in operational emissions since 2019

Baker Hughes, a global energy technology company, has officially opened its Sustainability Solutions Centre in Kuala Lumpur, marking a significant milestone in both its sustainability journey and Malaysia’s role in the global energy transition. The ceremonial launch, held during Energy Asia 2025, brought together regional stakeholders and highlighted the company’s commitment to advancing environmental, social, and governance (ESG) standards across the energy sector.

A Centralised Hub for Verified ESG Data

The new Centre is designed as a unique, centralised resource that provides and verifies ESG data on Baker Hughes’ products and services for customers and operations worldwide. As regulatory demands for sustainability disclosures increase, the Centre aims to support both mandatory and voluntary reporting requirements, helping customers navigate their decarbonization journeys with credible, reliable data.

Allyson Anderson Book, Chief Sustainability Officer at Baker Hughes [pic], emphasised the Centre’s strategic importance: “As the global regulatory landscape evolves, our Sustainability Solutions Centre in Malaysia serves as the bedrock for providing credible and reliable ESG data and services that impacts us as well as our global customers. We are excited to bring our global expertise in sustainability to Malaysia to support the country’s energy transition vision.”

The Centre’s establishment also aligns closely with Malaysia’s National Energy Transition Roadmap (NETR) and Hydrogen Economy and Technology Roadmap (HETR), reinforcing the country’s ambitions as a regional leader in sustainable energy.

Sustainability as a Commercial Differentiator

Baker Hughes’ sustainability strategy is deeply embedded in its business model. The company has set ambitious targets: reducing operational (Scope 1 and 2) emissions by 50% by 2030, achieving net-zero operational emissions by 2050, and reducing value chain (Scope 3) emissions by 2033.

The company’s “Carbon Out” program empowers employees worldwide to identify and implement emissions reduction projects, resulting in a nearly 30% reduction in operational emissions since 2019—achieved without relying on carbon credits. These reductions have been realised through practical measures such as upgrading to electric boilers, retrofitting facilities with LED lighting, and transitioning vehicle fleets to hybrids and electric models.

How Baker Hughes Accounts for Carbon Reduction as a Vendor

During a media briefing, Sustainability Matters raised a question about how Baker Hughes reconciles its internal carbon reductions with the emissions ultimately reported by its energy-producing clients, given its role as a service and technology vendor rather than a direct energy producer.

Baker Hughes clarified that its reported 30% reduction primarily reflects emissions from its own operations. However, the company also engages in joint emissions reduction projects at customer sites. The accounting for emissions depends on operational control: if Baker Hughes operates the site, the emissions are on its books; if the customer operates and pays for the energy, the emissions are attributed to the customer.

For products sold—such as gas turbines or compressors—the downstream emissions depend on how the equipment is used. If the equipment is deployed in low-emission scenarios (e.g., hydrogen or carbon capture projects), the emissions footprint is lower. Baker Hughes tracks aggregate emissions savings from these solutions but does not break them down by individual client due to the complexity of varying local regulations and grid emissions factors. The company provides customers with lifecycle emissions data for its products, enabling clients to audit and report their own savings.

Malaysia as a Strategic Hub

With over 1,200 employees in Malaysia and a presence spanning more than 50 years, Baker Hughes has made Kuala Lumpur a key regional hub. The city hosts one of the company’s three global fleet monitoring centers, providing 24/7 diagnostics for over 1,000 assets worldwide. The new Sustainability Solutions Center further solidifies Malaysia’s role in Baker Hughes’ global operations and in supporting the region’s energy transition.