General Electric: Power equipment and aircraft engines that are the building blocks of a sustainable future

By Faizan Farooque

February 29, 2024

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4 min read

General Electric technology helps generate about 30% of the world’s electricity. Every two seconds or so an airplane powered by GE’s or its partners’ engines lifts off from an airport somewhere on the globe. That kind of industrial reach puts GE in a position to have an outsized impact on sustainability.

“The GE team is excited for the path ahead. We are advancing our commitment to sustainability and to GE’s more than 130-year legacy of lifting up the quality of life for people around the world,” said CEO H. Lawrence Culp Jr., on GE’s website in an update of its corporate transition into three distinct companies: GE HealthCare, spun off in 2022, and GE Verona and GE Aerospace, set to separate early this year.

“By sharpening our focus on the specific missions of each business, we gain more opportunity for GE Vernova to electrify and decarbonize the world, for GE Aerospace to invent the future of flight, and for the (already) independent GE HealthCare to create a world where health care has no limits,” Culp wrote.

The company

General Electric GE , was founded in 1892 in Boston, 13 years after its co-founder Thomas Edison patented his incandescent light bulb, a household staple for more than a century. GE now has 174,000 workers in 170 countries.

From early 20th Century X-ray machines to today’s deep-learning CT imagers, from the first jet engines to today’s internet-connected 3-D printed versions and from Edison’s first power grid in 1882 to today’s Haliade-X 12 MW wind turbine prototype, GE has been on the cutting edge of industrial technology.

Now General Electric is on the cutting edge in its commitment to environmental, social, and governance principles, driven by innovation and global sustainability trends. This strategic pivot aligns with international efforts like the Paris Climate Agreement and responds to increasing demands for renewable energy solutions.

GE stock has been on a roll since the GE HealthCare spinoff, jumping 95% in 2023 and another 15% so far in 2024. Of 19 analysts surveyed on MarketWatch, 11 have buy ratings on the stock, six rate it a hold and two are “overweight.”

The sustainability goals

GE’s investments in renewable technologies, including wind and hydro power, and its exploration of hydrogen for gas turbines, underscore its aim for net-zero emissions. The Haliade-X offshore wind turbine, part of GE’s renewable energy portfolio, stands out for its impressive power generation capacity. A single rotation can power a U.S. household for a day.

The company’s initiatives also reflect a strong stance on social responsibility, amplified by its response to the global pandemic through enhanced production of medical equipment. As GE leads with ESG-focused strategies, it sets a benchmark in the industry for integrating sustainability into business operations, contributing to a more sustainable and profitable future.

Here’s a look at other current initiatives underway at GE:

Racial equality: General Electric is working to improve racial equality through a wide range of programs, such as diversity and inclusion, partner diversity, and community involvement. This pledge goes beyond having a diverse staff and includes being open, responsible, and involved in the community. GE has expanded its diversity reporting to include optional self-identification data from U.S. workers about disability and military status, as well as a study of fair pay for women around the world and for underserved minorities in the U.S. across all business segments.

Buyer diversity: This program helps a wide range of different sellers find business possibilities. Fair job practices and human rights are emphasized in this project, which makes sure that GE’s providers follow these rules. The program looks for small, diverse companies, such as those run by women, soldiers, and other neglected groups. The goal is to help the areas GE serves grow economically and create more opportunities.

Inclusiveness: GE Digital supports a culture where creativity grows with the full and honest participation of all its workers. The company’s strategy is based on the idea that innovation needs a broad workforce, along with open leadership and a friendly work environment. This is especially true in the difficult field of energy transition. This goal is backed up by GE’s Employee Resource Groups, which have been a big part of making the workplace more powerful for almost 30 years.

ESG: General Electric has made significant strides in its ESG initiatives, integrating sustainable practices across its business segments, including aerospace, power, renewable energy, and digital solutions. ESG principles are evident in its aircraft, especially jet engines, and power generation, including gas, steam, and nuclear solutions. The company has taken a proactive approach to worker safety, renewable collaborations, and net-zero emissions.

The upshot

GE is placing sustainability at the core of its strategy, forming three independent companies focused on energy, health care, and aviation. Ongoing investments in research and development underscore GE’s commitment to ESG-related innovation and solutions. GE’s ESG initiatives have a broad impact, benefiting communities, combating climate change, and serving governments, businesses, and communities worldwide seeking sustainable energy solutions and improved health care.

Read more in our sustainability series: