Materiality-Based Approach to ESG

Materiality-Based Approach to ESG

In alignment with our approach to ensuring that our sustainability strategy continues to reflect our – and our stakeholders’ – environmental, social and governance (ESG) priorities, we updated our ESG materiality matrix.

Through ongoing involvement and dialogue with our customers, investors, workforce and trade associations, any changes in the priority of ESG issues by our stakeholders were carefully recorded. In addition, an independent third-party review was performed that examined a range of ESG priorities for key stakeholders (including shareholders, customers, peers, suppliers and ESG rating organizations).

Despite the occurrence of the COVID-19 pandemic, the oil sector downturn and the increased focus on diversity and inclusion due to the focus brought by the Black Lives Matter social movement, we learned that the significance of each of these types of events was already captured and then reassessed as appropriately weighted in our materiality matrix. As you will read throughout this report, we also took active steps in 2020 to address each issue.

The materiality matrix shows the relative weight of different topics from two perspectives. The X-axis shows how important an issue is considered by the industry, while the Y-axis shows the topic’s importance to external stakeholders. 

We have also established supporting sustainability commitments to each material topic, as seen in the next table and highlighted throughout the report.

Sustainability Commitments



Material Issues


Climate Change

  • 40% Scope 1 & 2 reduction by 2035 from 2018 baseline 
  • Partner with Tier 1 suppliers to track and reduce Scope 3 GHG emissions
  • Climate change, GHG Emission reduction, Energy Efficiency, Alternative Energy
  • GHG emissions

Environmental Improvements

  • Establish and achieve waste reduction targets in our major facilities
  • Create water use improvement plans in our major facilities located in water-stressed areas
  • Environmental Stewardship: Water, Waste, Responsible resource use, biodiversity
  • Waste disposal
  • Water consumption
  • Spill volume & rate

Value Creation Technologies and Solutions / Continuous Improvement

  • Lead the industry in innovation and conscientious stewardship of global resources
  • Provide solutions that support decarbonizing our customers’ legacy production base
  • Economic Performance
  • Continuous Improvement
  • R&D (patents and spend)
  • Financial performance

Human Rights

  • Support universal human rights as defined by the United Nations Universal Declaration of Human Rights through fair and ethical employment practices and our Code of Business Conduct
  • Human Rights
  • Supply chain assessments

Occupational Safety – Journey to ZERO

  • Improve our TRIR, LTIR, PRVIR and REIR by ≥ 5% year on year compared to prior year’s performance and target outperforming TRIR and LTIR in the International Association of Drilling Contractors sector benchmarking
  • Achieve HSE training compliance ≥ 95%, driver competency ≥ 95% and 100% completion of our annual Journey to ZERO strategic objectives
  • Health, Safety, Wellness
  • Fatalities, injuries, high potential incidents and rates
  • HSE training hours
  • HSE training compliance 
  • Driver competency 

Skilled and Committed Workforce

  • Listen and respond to employee feedback, and commit to an engaged workforce that feels valued with the right support and resources to be successful
  • Benefits and Compensation
  • Training hours
  • Business Leadership Development Program and President’s Leadership Excellence
  • Program attendees
  • New hires (#, %)
  • Turnover rates
  • Engagement indices

Diversity and Inclusion

  • Provide a diverse, equitable and inclusive environment that upholds our core values of collaboration and respect, and provides all employees opportunities for growth and development
  • Diversity and Inclusion
  • Board leadership and Inclusion
  • Female % new hire by region
  • Local nationals % by region
  • Female diversity
  • Board diversity
  • % female in STEM job roles
  • % of minorities in STEM job roles (U.S. only)

Risk Management

  • Continue with a leading governance model to ensure enhanced collaboration among and between critical functions within the Company in order to best assess risk, identify opportunities for risk mitigation, and improve visibility to key stakeholders across the organization
  • Streamline risk categories, risk identification, and risk management to ensure best alignment with Halliburton strategy and that critical focus is placed on what matters most
  • Corporate Governance
  • Business Ethics and Transparency
  • HSE
  • Information Security, Data Management
  • Board independence
  • Board meeting attendance
  • Risk Matrix
  • Security assessments

Ethical Operations

  • Conduct business with integrity, choosing the ethical course of action when confronted with challenging circumstances, promoting a speak-up culture free of retaliation, and treating our employees and stakeholders honestly and fairly
  • Corporate Governance
  • Business Ethics and Transparency
  • Local Ethics Officers and engagements/trainings
  • Ethics training
  • Code of Business Conduct (COBC) statistics

Supplier Conduct and Responsible Procurement

  • Cultivate a sustainable supply chain through the continuous improvement of internal processes, by performing proactive risk assessments and by working collaboratively with our diverse mix of local and global suppliers
  • Supply Chain Sustainability

  • Tier 1 count and spend
  • Spend with small and diverse suppliers
  • Local region spend % 

Community Relationships

  • Enhance the social value of communities in which we live and work through effective engagement and social investment
  • Local Communities

  • Charitable giving