General Electric

No leading practices were identified for this company.

No leading practices were identified for this company.

No leading practices were identified for this company.

No leading practices were identified for this company.

GE aims to achieve carbon neutrality for its scope 1 and 2 emissions by 2030, in alignment with a 1.5°C scenario. However, it plans to use an undisclosed quantity of carbon offsets to achieve this goal. The company is committed to reducing the scope 3 emissions from its power business by up to 45% by 2030 compared to 2019 and is on track to achieve this. GE has not, however, established adequate intermediate targets until 2030, nor between 2030 and 2050. Implementing regularly spaced intermediate targets will help the company incentivise near-term actions towards its longer-term goals. 

While GE addresses various aspects of the low-carbon transition, the absence of a dedicated transition plan is a missed opportunity for the company to create a more comprehensive net-zero strategy across its diverse business segments. The company’s ability to achieve net-zero emissions relies heavily on the existence of a global green hydrogen market at scale starting 2030, which currently remains an uncertain prospect. 

Between 2020 and 2022 the company consistently allocated 13.5% of its annual research and development (R&D) budget to low-carbon technologies. However, the company should increase the share of its low-carbon R&D budget to strengthen its commitment to reduce emissions. In the same vein, the company should disclose its forward–looking capital expenditure (CapEx) investments in low-carbon technologies over the short term.  

The company stands to benefit significantly by implementing more stringent criteria to incentivise its suppliers to reduce their greenhouse gas (GHG) emissions. Currently, the company only requires its suppliers to meet the beginner level of the EcoVadis Carbon Action Module, but it does not ask for specific emissions reduction commitments. Additionally, the company’s client interactions mainly revolve around gathering sustainability data, gaining behavioural insights or conducting informational campaigns. 

GE has committed to achieving carbon neutrality for its scope 1 and 2 emissions by 2030. It is also committed to reducing scope 3 emissions related to the use of its products in the power segment by 45% until 2030 compared to 2019, and to achieving carbon neutrality by 2050. 

GE lacks a formal transition plan, but the company has addressed various aspects of the low-carbon transition. These include outlining both short-term and long-term actions and incorporating carbon pricing into an investment analysis for its projects located in regions with carbon emissions reduction programmes. 

In 2022, around 17% of GE’s revenue came from the renewable energy segment. During the year, the company delivered 7.2 gigawatts (GW) of wind power, making it a significant global player in this area, representing 8% of the new global wind power capacity added in 2022. In comparison, the company’s grid solutions segment, a potential bottleneck for the integration of its renewables capacity, has remained small. 

GE has achieved a 36% reduction in emissions from its sold products in 2022 compared to 2019, mainly by discontinuing coal-fired turbines. However, future advancements in reducing its downstream scope 3 emissions will be increasingly challenging due to the enduring legacy of the company’s gas-fired power generation. 

The company intends to prioritise short-term expansion of renewables, particularly offshore wind turbines in the US market, as well as the development of power conversion and grid solutions. Nevertheless, it currently reports no specific plans for scaling down its gas-fired power generation business. 

The company publicly discloses a commitment to engaging in social dialogue with workers and unions. However, no relevant disclosure was found regarding the categories of stakeholders it engages with on a just transition. Nor was there any evidence to show the company’s ongoing social dialogue and meaningful engagement with affected stakeholders. No evidence was found of the company undertaking low-carbon transition planning to mitigate the social impacts of the transition on workers, affected stakeholders and its business relationships. Additionally, no evidence was found to demonstrate the company’s engagement in social dialogue and with stakeholders in its just transition planning.

No public commitment by the company was found stating its intention to create and support access to green and decent jobs as part of the low-carbon transition. Moreover, no evidence was found of the company’s action to promote these jobs in a way that ensures gender balance and inclusion of vulnerable groups. Additionally, no relevant disclosure was found of the company’s assessment of employment dislocation risks. The company discloses the actions it takes to provide training opportunities to embed equality of opportunity for women and vulnerable groups. It does this through partnerships with the Society of Women Engineers (SWE) for professional growth and building skillsets to become more equipped leaders. However, no evidence was found of the company having a process for identifying skills gaps for workers and stakeholders affected by the low-carbon transition or a public commitment to help workers displaced by the transition to reskill or upskill.

No relevant disclosure was found to show if the company identifies impacts of the low-carbon transition on social protection for workers and affected stakeholders, nor how it contributes to social protection. Additionally, no evidence was found that the company expects its business relationships to contribute to the social protection of their workers and affected stakeholders. No relevant disclosure was found to show how the company identifies any misalignment of its lobbying activities with policies and regulations that support the just transition, nor of the measures it takes to address misalignment. Furthermore, no evidence was found that the company lobbies for policies and regulations for green and decent job creation; retention, education and reskilling; and social protection for workers.

The company commits to respecting human rights. However, no evidence that the company commits to respecting the ILO fundamental rights at work, nor does it expect its business relationships to respect the same commitment. The company discloses a human rights due diligence process that includes the identification and assessment of salient human rights risks, such as modern slavery, just working conditions, the right to security of the person, and indigenous rights. However, no evidence was found that the company takes action to mitigate these risks in its own operations and supply chain, nor does it engage with affected stakeholders. While the company has a grievance mechanism available to workers, no evidence that it has a grievance mechanism available to external stakeholders.

The company commits to respecting the health and safety of its workers and expects the same commitment of its business relationships. No evidence was found of a time-bound target for paying all workers a living wage. Moreover, no evidence was found that the company discloses the proportion of its direct workforce covered by collective bargaining agreements and the company’s required working hours. The company discloses some indicators of workforce diversity, including the gender and race/ethnicity of its workforce by employee category. However, no relevant disclosure was found of additional indicators of workforce diversity. No evidence was found that the company commits to gender equality and women’s empowerment.

The company commits to protecting personal data. However, no evidence was found of a privacy statement regarding the collection, sharing and access to personal data. Moreover, no relevant disclosure was found of the company’s global tax strategy and the corporate income tax paid for each relevant jurisdiction. The company does have a policy prohibiting bribery and corruption, and it includes corresponding clauses in its contracts with business relationships. While the company has a lobbying and political engagement policy, no evidence that it specifies that it does not make political contributions. No relevant disclosure was found of the company’s expenditure on lobbying activities.