Climate Change Data

Environmental Metrics

ESG Focus Areas

• Integrity & Compliance
• Human Rights
• Climate & Energy
• Environment, Health & Safety (EHS)
• Sustainability

Environmental Achievements

• GE9X engine will generate 10% less CO2 and 45% less smog-causing emissions than its predecessor.
• 18% greenhouse gas reduction since 2011
• 12% water reduction since 2011

Social Achievements

• Recognized on list of World’s Most Ethical Companies for 12 straight years (2007-2018)
• Published first U.K. Modern Slavery Act (MSA) Transparency Statement
• Approximately 21,400 employees participated in the International Employee Stock Purchase Plan in 2017

Governance Achievements

• Created a new Finance and Capital Allocation Committee of the Board
• Significantly reduced the size of the Board
• Independent oversight of political spending

Climate Goals & Targets

Environmental Challenges

• Tough power and oil and gas markets
• Metrics too focused on EPS and operating profit, not enough on cash
• Loss of focus on operating rigor and discipline
• Significant charges from GE Capital and Power Conversion
• Difficult decisions regarding dividend and employment
• Declining heavy-duty gas turbine market and over-capacity
• Challenging dynamics in Aero market, including customer financing availability
• Lower demand for services upgrades
• Supply chain overcapacity
• Tougher competitive dynamics on transactional services
• Increasing pricing pressure and need for innovation due to continued competitive pressure from other wind turbine producers & energy sources
• Despite some stabilization, large-scale customer investments remain muted
• Improving demand for natural resources, though still challenging
• North American market absorbing locomotive oversupply
• Charge of $6.2B (after-tax) from increased reserves related to run-off insurance operations

Mitigation Strategies

• Focus on delivering outcomes for customers
• Shifting GE’s center of gravity to empower business units
• Identifying more than $20 billion of assets for potential exit
• Reducing Corporate costs by $0.5 billion in 2017 and planning further cuts in 2018
• Revisiting the Company’s structure to explore options for better results
• More rigorous alignment of capital allocation strategy with customer needs and market realities
• Focusing on core installed base market for Predix offerings
• Leveraging partners to pursue digital opportunities beyond core industries
• Streamlining Global Research Centers
• Narrowing long-term focus to aviation, health, and energy
• Resetting, refocusing, and renewing GE Power
• Reducing structure and manufacturing footprint in Power
• Reducing global headcount by approximately 12,000 positions in Power
• Cutting $1 billion of structural costs in Power in 2018
• Planning to reduce manufacturing capacity by 30% or more in Power
• Improving cash conversion in Power
• Expanding product and service margins in Power
• Consolidating IT systems in Power
• Maximizing services dollars per installed asset in Power
• Increasing visibility and execution on cash
• Cutting an additional $2 billion in structural costs in 2018
• Focusing on product costs, attacking cost of quality, reducing manufacturing overhead, and accelerating the implementation of additive design and manufacturing
• Establishing a robust capital allocation framework and process
• Adding more quantitative measures to assess alternatives for deploying the Company’s excess cash flow
• Forming an investment committee to assess investment opportunities
• Pushing for more accountability at all levels of GE
• Focusing on simpler reporting metrics like revenue, operating profit, and free cash flow
• Tying compensation for senior executives to equity and business performance
• Reducing the size of the Board and bringing in new experts

Supply Chain Management

Responsible Procurement

• Supplier Integrity Guide (SIG)

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• GE9X engine
• Reservoir energy storage platform
• Haliade-X offshore wind turbine

Awards & Recognition

• World’s Most Ethical Companies (12 years)

Environmental Metrics

ESG Focus Areas

• Energy Transition
• Precision Health
• Future of Flight
• Safety
• Environmental Stewardship
• Human Rights
• Culture of Integrity
• Lifting Our Communities

Environmental Achievements

• Reduced GE Operational GHG Emissions by 21% from 2011 baseline by 2019 (surpassing 20% by 2020 goal).
• Reduced freshwater use by approximately 21 percent compared to 2011.
• Successfully completed the Hudson River dredging project, removing more than twice the volume of PCBs the EPA originally expected.
• Reached an agreement with the EPA and local communities for a comprehensive cleanup of the Housatonic River.
• Signed a multi-year agreement with Veolia North America to recycle decommissioned wind turbine blades.

Social Achievements

• Launched #NotAloneGE to support employee mental and emotional health.
• Established an Employee Relief Fund providing support to 3,900 employees and their families.
• GE Foundation contributed $4.9 million in COVID-19 relief.
• GE Foundation launched Next Engineers, committing up to $100 million over 10 years to increase diversity in engineering.
• Published first Diversity Report.

Governance Achievements

• Appointed Mike Barber as Chief Diversity Officer and chief diversity officers in each business.
• Appointed Roger Martella as first Chief Sustainability Officer.
• Implemented a four-level GE Site Safety Roadmap aligned with global regulatory guidance.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting operations and metrics.
• Systemic inequality.
• Safety incidents, particularly in project and service operations with contract workers.
• Supply chain disruptions due to the COVID-19 pandemic.

Mitigation Strategies

• Implemented strong safety precautions for global workforce.
• Established an enterprise-wide COVID-19 Task Force.
• Increased production of ventilators and other critical medical equipment.
• Launched Vision Safe program in GE Renewable Energy.
• Implemented a set of standards for contractor prequalification.
• Developed and launched GE’s Life Saving Principles.
• Implemented a Supplier Responsibility Governance (SRG) Program.
• Pivoted to allow desktop audits for suppliers during the pandemic.

Supply Chain Management

Supplier Audits: 1,286 (2020)

Responsible Procurement

• GE Integrity Guide For Suppliers, Contractors and Consultants
• Supplier Responsibility Governance (SRG) Program

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Growth in renewable energy
• Development of energy-efficient products
• Advanced nuclear, hydrogen, and carbon capture technologies.

Reporting Standards

Frameworks Used: TCFD, SASB, GRI Standards (Core)

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 3 (Good Health and Well-being)
• Goal 8 (Decent Work and Economic Growth)
• Goal 9 (Industry, Innovation, and Infrastructure)
• Goal 13 (Climate Action)

GE's products and services contribute to these goals through renewable energy, healthcare technologies, job creation, infrastructure development, and climate mitigation efforts.

Sustainable Products & Innovation

• Haliade-X wind turbine
• HA gas turbine
• GE9X aircraft engine
• Vscan Air ultrasound
• Edison platform

Environmental Metrics

ESG Focus Areas

• Energy Transition
• Precision Health
• Future of Flight
• Safety
• Human Rights
• Environmental Stewardship
• Commitment to Human Rights
• Product Stewardship

Environmental Achievements

• Reduced GE Aviation’s Scope 1 and Scope 2 emissions by more than 20% since 2019.
• Haliade-X 14 MW turbine can generate up to 74 GWh of gross annual energy production, saving up to 52,000 metric tons of CO2.
• Gas Power team held a “Carbon and Energy Savings Kaizen Week”, identifying an average savings of seven percent energy usage per site.
• GE Healthcare transitioned several sites to renewable energy sources.

Social Achievements

• Launched Next Engineers — a global college- and career- readiness program to increase the diversity of young people in engineering.
• GE Healthcare joined the White House in efforts to help providers improve maternal health outcomes.
• GE Foundation provided grants to food banks around the world.
• GE and the GE Foundation made a $4.5 million philanthropic commitment to provide immediate support to Ukraine.

Governance Achievements

• Growth at the leadership level for both women globally (+1.2%) and for total U.S. race and ethnic minority (+1.7%) since 2020.
• Appointed Brandi Thomas as Chief Diversity Officer.
• Published its first Human Rights Report in 2022.
• Published its latest version of The Spirit & The Letter (employee code of conduct).

Climate Goals & Targets

Environmental Challenges

• Supply chain constraints
• Government budget shortfalls
• Disruption to education and employment due to the COVID-19 pandemic
• War in Ukraine

Mitigation Strategies

• GE teams continued to assist healthcare providers and communities.
• GE donated $4.5 million in medical equipment and humanitarian support to Ukraine and neighboring countries.
• Suspended all operations in Russia except for providing essential medical equipment and supporting existing power services.

Supply Chain Management

Supplier Audits: 1,115

Responsible Procurement

• Supplier Integrity Guide
• Ethical supply chain program
• EcoVadis sustainability ratings and performance

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products
• Growth in renewable energy

Reporting Standards

Frameworks Used: TCFD, SASB, GRI Standards (Core)

Certifications: ISO 14001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• SDG 7 (Affordable and Clean Energy)
• SDG 11 (Sustainable Cities and Communities)
• SDG 13 (Climate Action)

GE's products and services contribute to achieving these goals through renewable energy, energy efficiency, and decarbonization technologies.

Sustainable Products & Innovation

• Haliade-X wind turbine
• HA gas turbine
• Vscan ultrasound scanner
• SIGNA Hero MRI system
• CFM LEAP engine
• GE9X engine

Awards & Recognition

• Company of the Year by the Society of Hispanic Professional Engineers

Environmental Metrics

ESG Focus Areas

• Not disclosed

Environmental Achievements

• GE Aerospace's CFM RISE Technology Demonstration Program aims to reduce fuel consumption and CO2 emissions by more than 20% compared with today’s most efficient engines.
• GE Aerospace announced a new flight test program for a hydrogen combustion engine and an open fan flight test demonstration, both with Airbus.

Social Achievements

• GE's annual bonus program for executives included a modifier based on the Company’s safety performance.
• GE conducted an enterprise-wide culture survey in early 2022.
• GE disclosed in its Diversity Annual Report its long-standing commitment to fair and competitive pay practices. On average, men and women performing similar work are paid within 1% of each other in each GE business.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Inflationary pressures, geopolitical conflict, global supply chain challenges, and an enduring pandemic.
• Global material availability and labor shortages impacted production and delivery.
• Cost inflation across all businesses.
• U.S. production tax credit (PTC) lapse reduced 2022 demand at Renewable Energy.
• Supply chain pressures impacted the ability to convert RPO to revenue and negatively impacted profit margins.
• Geopolitical uncertainties and COVID-19 impacts in China introduced additional challenges.

Mitigation Strategies

• Focused on “controlling the controllable”.
• Aerospace managed inflation by deploying lean initiatives, partnering with suppliers, and adjusting pricing.
• Renewable Energy deployed corrective measures to increase availability, reduced fixed costs, and was more selective on projects.
• HealthCare adjusted pricing of products, managed discretionary and fixed costs, and prioritized research and development investments.
• Power deployed lean initiatives, partnered with suppliers, and adjusted pricing.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• CFM RISE Technology Demonstration Program
• hydrogen combustion engine
• open fan flight test demonstration
• megawatt-class hybrid electric system

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Not disclosed

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• supply chain disruptions due to global geopolitical forces, material availability, supplier delivery performance and skilled labor shortages, inflationary pressure in the supply chain, delays in sourcing key materials needed for our products and skilled labor shortages, challenges in the Offshore Wind industry as companies attempt to increase output and reduce cost, pressure related to product and project cost estimates at Offshore Wind
• Russia and Ukraine charges

Mitigation Strategies

• lean initiatives to drive cost productivity, partnering with our suppliers and adjusting the pricing of our products and services, focusing where we can play, win, and do so profitably, deploying countermeasures to combat cost pressures and driving productivity and cost improvement for our new larger turbines, deploying lean initiatives to drive cost productivity, partnering with our suppliers and adjusting the pricing of our products and services

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• CFM International’s RISE program, Hybrid Thermally Efficient Core program, open fan engine architecture, compact core, hybrid electric systems compatible with 100-percent Sustainable Aviation Fuel (SAF), direct hydrogen combustion, carbon capture and removal, hydrogen combustion, and nuclear, including small modular reactors

Awards & Recognition

• Not disclosed