GE (or General Electric) (2015 – Present)

General Electric (“GE”) consists of multiple U.S. 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 June 2018, GE announced the results of a strategic review, in which GE will focus on Aviation, Power and Renewable Energy, creating a simpler, stronger, leading high-tech Industrial company. In addition to the pending combination of its Transportation business with Wabtec, GE plans to separate GE Healthcare into a standalone company, pursue an orderly separation from BHGE (Baker Hughes, a GE company) over the next two to three years, make its corporate structure leaner, substantially reduce debt and improve liquidity. The actions unlock both a pure-play healthcare company and a tier-one oil and gas servicing and equipment manufacturer. GE also announced that the Board’s independent directors have completed the previously announced lead director transition, electing Larry Culp, former CEO of Danaher, to succeed Jack Brennan, who is completing his last term on the GE Board. Trian supports these strategic initiatives and believes that these initiatives will create substantial value for shareholders.

Trian expects to continue working closely and constructively with CEO and Chairman John Flannery and his leadership team, together with the GE board 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. Three new directors joined the board including Larry Culp, former CEO of Danaher, who became the lead director in June 2018
  • Ecomagination: GE’s ecologically-focused business strategy has generated $270 billion in revenues from Ecomagination solutions through 2016
  • Conservation: GE has reduced the use of freshwater by more than 29% through 2016 surpassing its goal of a 20% reduction by 2020 on an adj. 2011 baseline
  • Corporate Ethics: Recognized by Ethisphere as one of the World’s Most Ethical Companies for 12 consecutive years (2007–2018)
  • Emissions Reduction: GE has reduced greenhouse gas emissions by 18% through 2016 from an adj. 2011 baseline and plans an additional 20% reduction through 2020
  • Diversity: In 2017, launched the “Balance the Equation” initiative with the goal of having 20,000 women in STEM roles by 2020 and obtaining 50% representation for women in GE’s technical entry-level programs
  • GE Volunteers: Since 2005, GE employees and retirees have reported more than 12 million hours spent volunteering on more than 57,000 projects globally
  • Affordable Healthcare: Today, over 5.8 billion people lack access to quality, affordable healthcare. GE has committed $300 million to deliver disruptive technologies to healthcare providers across emerging markets

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

Trian Board Member