GE (or General Electric) (2015 – Present)

General Electric (“GE”) consists of multiple high-tech industrial businesses serving critical global infrastructure end markets.

In October 2015, Trian announced its investment in GE. In October 2017, Trian’s Chief Investment Officer and a Founding Partner, Ed Garden, was elected to the GE board of directors.

In 2018, GE shared its strategy to improve its financial position and strengthen its businesses. In addition to the spin-off and merger of its Transportation business with Wabtec (completed in February 2019), GE plans to pursue an orderly separation from BHGE (Baker Hughes, a GE company) over the next two to three years, streamline its corporate structure and substantially reduce leverage. Trian supports these strategic initiatives and believes that these initiatives will create substantial value for shareholders.

On September 30, 2018, Larry Culp, Jr., former CEO of Danaher Corporation, was named Chairman and CEO of GE and Thomas W. Horton was appointed lead director. Prior to his appointment, Mr. Culp was a member of the GE Board and served as lead director since June 2018. Trian expects to continue working closely and constructively with Larry Culp and the rest of the GE board and leadership team as the company executes its strategic initiatives.

Sector: Industrial

Fun Fact: The GE 7F.05 gas turbine generates 225 MW, equivalent to 644,000 horsepower, or the power of 644 Formula One cars.

Company Website: http://www.ge.com/

ESG Highlights:

  • Board Refreshment: Following the April 2018 shareowners meeting, GE’s board was reduced from 18 directors to 12 directors. Over the last year, 5 new directors have joined the board including Larry Culp, former CEO of Danaher Corporation, who became the lead director in June 2018 and Chairman and CEO of GE on September 30, 2018
  • Conservation: Through 2017, GE’s overall freshwater use was reduced 25% from its adjusted 2011 baseline, versus its 2020 goal of 20% reduction from 2011 levels
  • Emissions Reduction: Through 2017, GE has reduced greenhouse gas (GHG) emissions from operations by 27%, from its adjusted 2011 baseline. With these results, GE has surpassed its 20% by 2020 GHG goal
  • GE Volunteers: Since 2005, GE employees and retirees have reported more than 12 million hours spent volunteering on more than 57,000 projects globally
  • Improving Healthcare Globally: GE’s philanthropic arm, the GE Foundation, is leading a multi-sector effort to improve surgical capacity and training with its Safe Surgery 2020 initiative. The initiative is a $25 million commitment over three years that focuses on transforming the accessibility, quality and safety of surgical care in low- and middle-income countries, leading to reductions in maternal and trauma-related mortality and to stronger health systems
  • ISS E&S Score: Received a 2 on ISS’s QualityScore metric for Environment and 1 for Social (as of May 15, 2019), the second and highest possible scores (out of 10)

For more information on ESG initiatives at GE, please visit http://www.ge.com/sustainability

Trian Board Member