Climate Change Data

Environmental Metrics

ESG Focus Areas

• Business Integrity
• Product Impact
• Employee Wellbeing
• Resource Efficiency
• Information Security

Environmental Achievements

• Reduced energy use by 18%, atmospheric carbon emissions by 38%, and water use by 22% from a 2010 baseline.
• Reached 3.7 million square feet of green buildings.
• Consumed 322,000 MWh of clean energy (including onsite renewables, RECs, and PPAs).

Social Achievements

• Lower attrition rate among top-performing employees compared to all employees.
• Increased succession planning for senior leadership.
• 62.5% intern conversion rate.
• Increased employee participation in company-sponsored diversity events, BRGs, and leadership associations.
• Donated nearly $22 million to non-profit organizations and public schools in response to COVID-19.
• Produced and donated over 93,000 protective gowns and 54,000 face shields for frontline medical workers.

Governance Achievements

• 100% completion rate of applicable employee training on Business Courtesies and International Business Conduct Compliance Training (BCCT) modules.
• 100% completion rate of applicable training on Ethics for business consultants.
• Completed annual risk assessments and audit plan of international business development consultants.
• Successfully integrated design-to-cost into proposal planning.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting energy usage (increased HVAC activity), occupational illness cases, and external health service stress.
• Challenges on Transitional Duty Program (TDP) execution.
• Veterans representation decline due to changing demographics and retirement trends.
• Women's representation remaining below the 2015 baseline despite increases since 2017.

Mitigation Strategies

• Implemented flexible teleworking policy.
• Covered COVID-19 treatment and telehealth services for employees and family members.
• Activated Lockheed Martin Employee Disaster Relief Fund.
• Offered direct access to COVID-19 testing.
• Launched Rise Up Resources campaign to support suppliers.
• Accelerated payments to over 10,100 suppliers, including nearly 6,200 small businesses.
• Expanded existing workforce programs and initiatives to further build a diverse and inclusive workplace.

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards: Core Option, SASB Standards, TCFD recommendations

Certifications: ISO 14001, ISO 45001, ISO27001

Third-party Assurance: DNV

Sustainable Products & Innovation

• FIREHAWK® Helicopter
• Orion spacecraft
• CH-53K landing gear installation tool

Awards & Recognition

• CDP Climate A List
• Fortune World’s Most Admired Companies
• Forbes America’s Best Employers for Diversity
• Human Rights Campaign Best Places to Work for LGBTQ Equality
• JUST Capital 1st of Aerospace & Defense companies
• Military Times Best for Vets Employers
• US Black Engineer Magazine #1 Top Supporter of HBCUs
• ENERGY STAR Partner of the Year for Industrial Energy Management (twice)

Environmental Metrics

ESG Focus Areas

• Advancing Resource Stewardship
• Elevating Digital Responsibility
• Fostering Workplace Resiliency
• Modeling Business Integrity

Environmental Achievements

• Reduced Scope 1 and 2 carbon emissions per dollar of gross profit by 47%
• Used renewable energy for 22% of total electricity across Lockheed Martin global operations
• Completed 64 energy efficiency projects resulting in annual savings of 40.0 million kilowatt-hours of electricity and 17,200 MMBTU of natural gas

Social Achievements

• Exceeded U.S. Department of Labor hiring targets for protected veterans and people with disabilities
• Increased representation of people of color to 29%
• 2,700 employees completed a bystander intervention training workshop through our Upstander Campaign

Governance Achievements

• Achieved 100% completion of required employee training on gifts and business courtesies and international business practices
• Survey results indicate 29% of employees who have observed misconduct in the workplace in the prior 12 months did not report or take action to address it.

Climate Goals & Targets

Environmental Challenges

• Lower participation of certain groups in science, technology, engineering and math occupations
• Employees observing misconduct but not reporting or taking action due to fear of retaliation or belief that no action will be taken
• Challenges in tracing the upstream origins of all product components for critical mineral resources

Mitigation Strategies

• Scholarships, internships, fellowships, and partnerships to increase workforce diversity
• Multiple contact methods for reporting misconduct, anti-retaliation policies, and training to address employee concerns
• Building internal awareness, identifying teams to analyze resource data, and defining a roadmap to increase traceability of critical mineral resources

Supply Chain Management

Supplier Audits: 13,700 suppliers assessed for social impacts in 2021

Responsible Procurement

• Supplier Code of Conduct
• Counterfeit parts prevention program
• Conflict minerals reporting
• Human trafficking risk assessment

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products and services
• Investment in carbon removal technologies

Reporting Standards

Frameworks Used: GRI Standards: Core Option, SASB Standards, TCFD Framework

Certifications: ISO 14001, ISO 45001

Third-party Assurance: DNV

UN Sustainable Development Goals

• Goal 4 (Quality Education)
• Goal 5 (Gender Equality)
• Goal 7 (Affordable and Clean Energy)
• Goal 16 (Peace, Justice and Strong Institutions)

Goals and targets aligned to these SDGs

Sustainable Products & Innovation

• Sustainable aviation fuel approved for S-92 helicopter

Awards & Recognition

• Dow Jones Sustainability Indices World Index and North American Index
• ENERGY STAR 2021 Partner of the Year Sustained Excellence Award
• Gold Brandon Hall Human Capital Management Excellence Award
• JUST Capital: Included in the JUST 100 for third consecutive year

Environmental Metrics

ESG Focus Areas

• Advancing Resource Stewardship
• Elevating Digital Responsibility
• Fostering Workplace Resiliency
• Modeling Business Integrity

Environmental Achievements

• Reduced Scope 1 and 2 carbon emissions per dollar of gross profit by 53%
• Completed 78 energy efficiency projects resulting in annual savings of 26 million kWh of electricity and 28,000 MMBtu of natural gas, and avoided $3.1 million in utility and maintenance costs
• Earned ENERGY STAR® certification for six buildings
• Used renewable energy for 23% of total electricity across Lockheed Martin global operations
• Received LEED Silver certification for a newly constructed 18,000-square-foot office building in Camden, AR

Social Achievements

• Published second annual Human Rights Report
• Received a bronze designation from the American Business Awards for diversity and inclusion
• Expanded financial contributions to partner with Rocky Mountain Institute
• Increased representation of women to 23.3% and people of color to 30.4%
• Exceeded U.S. Department of Labor hiring targets for protected veterans and people with disabilities
• Integrated the Upstander Campaign into the digital training platform, with 3,600 employees completing bystander intervention training
• Launched the Workplace Reasonable Accommodations Process (WRAP) tool
• Saw tremendous growth in international Employee Resource Groups (ERGs), with 11 new ERGs created

Governance Achievements

• Enhanced ability to identify, locate, govern, manage and protect sensitive data by deploying an improved internal intellectual property process
• Achieved 100% completion of required employee training on gifts and business courtesies and international business practices
• Deployed the Restricted Use Only and Restricted Internal Use Only designations and associated intellectual property processes and policies for Lockheed Martin Proprietary Information

Climate Goals & Targets

Environmental Challenges

• Did not meet the goal to reduce the number of days away from work due to occupational injury or illness in 2022 (attributed to occupational COVID-19-related days away from work)

Mitigation Strategies

• Analysis showed that the occupational injury/illness goal would have been met if occupational COVID-19-related days away from work were removed from the 2022 calculation
• Implemented a new serious incidents or fatalities (SIF) management process enterprisewide

Supply Chain Management

Supplier Audits: 13,383 suppliers assessed for social impacts

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards, SASB standards

Certifications: ISO 14001, ISO 45001

Third-party Assurance: DNV

Awards & Recognition

• ENERGY STAR 2022 Partner of the Year Sustained Excellence Award
• American Business Awards’ Bronze Award for Diversity and Inclusion
• Gold Hermes Award Winner in the Educational Category

Environmental Metrics

ESG Focus Areas

• Resource Stewardship
• Digital Responsibility
• Workplace Resiliency
• Business Integrity

Environmental Achievements

• Reduced Scope 1 and 2 absolute carbon emissions by 13.6% from a 2020 baseline
• Used renewable energy for 24% of total electricity across global operations
• Added over 70,000 square feet of LEED- or BREEAM-certified/rated facilities

Social Achievements

• Exceeded annual U.S. Department of Labor targets for hiring protected veterans and people with disabilities
• Maintained female workforce representation and increased percentage of people of color
• Outperformed three-year severity rate for days away from work due to occupational injury or illness

Governance Achievements

• Achieved 100% completion of required employee training on gifts and business courtesies and international business practices
• Scored 28% in the 2023 Employee Insights Survey for employees who observed misconduct but neither reported it nor took action to address it (improvement over 2021)

Climate Goals & Targets

Environmental Challenges

• Risk of counterfeiting in the supply chain
• Ensuring resource security and traceability of critical mineral resources
• Addressing climate-related risks and opportunities

Mitigation Strategies

• Engaging with suppliers and providing training on counterfeit parts prevention
• Establishing the Critical Materials Management team to develop a strategy for critical materials
• Accelerating GHG emission reduction and renewable energy targets, refining climate-related risk and opportunity analysis

Supply Chain Management

Supplier Audits: 13,297 suppliers assessed for social impacts

Responsible Procurement

• Supplier Code of Conduct
• Counterfeit parts prevention measures

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards, SASB standards

Certifications: ISO 14001, ISO 45001

Third-party Assurance: DNV

Awards & Recognition

• 2023 ENERGY STAR Award (Sustained Excellence)
• 2023 HIRE Vets Platinum Medallion Award
• Dow Jones Sustainability Indices World Index
• MSCI 2023 ESG Rating of AA