OUR SUSTAINABILITY MISSION

To foster innovation, integrity, and security to protect the environment, strengthen communities, and propel responsible growth.

Sustainability And Our Business Model

Governments and commercial entities need strong partners to help mitigate risks associated with infrastructure security, climate change, and significant societal challenges. Many of our customers have unique responsibilities in addressing these far-reaching and rapidly evolving circumstances. As a mission-driven organization, Lockheed Martin is a key partner for these groups, and as such, sustainability is deeply rooted in our business model. We innovate and develop long-lasting products and services to protect and strengthen systems, enable global cooperation, and serve society’s current and emerging needs.

Sustainability is integrated throughout our business in strategic planning, risk management, product and service innovation, and other areas. We actively engage with our stakeholders to understand, anticipate, and address their short- and long-term needs. For example, we include embracing life-cycle and circular economy principles in our product and service innovations. To this end, we not only design and assemble advanced aerospace and defense technologies, such as the SBIRS and GOES-R satellites and the F-35 aircraft, we are also responsible for their long-term sustainment under U.S. government contracts. Sustaining such technologies increases service life and reduces waste during the life cycle, beginning at the design phase and extending well into product use through integration of next-generation technology upgrades.

To further our industry’s direction in sustainable science, we are also turning to nature for inspiration. We recently began an exciting new program with the Army Research Laboratory to advance the state of biodesign — which brings together biology and technology for sustainable, scientific advancement. During our five-year agreement, Lockheed Martin material scientists are working with industry and Army scientists who design microbes to edit single-cell organism DNA. Together, they are investigating a range of capabilities, particularly those that can harness the power of nature to improve defense optical technology and coatings for more efficient, affordable, and ultimately more sustainable outcomes.

ADDRESSING GLOBAL CHALLENGES

Since 2015, we have tracked five megatrends relevant to our operations, as well as the challenges and opportunities they present to our business and our customers:

globe
Reimagining WorkReimagining Work
Supporting Geopolitical StabilitySupporting Geopolitical Stability
Reinforcing Confidence in InstitutionsReinforcing Confidence in Institutions
Facilitating Climate ResiliencyFacilitating Climate Resiliency
Safeguarding Data ReliabilitySafeguarding Data Reliability

Reimagining Work

Global Context

In many parts of the world, the workplace is changing rapidly. Technology is transforming how humans and machines interact and collaborate. As of this year, women make up the majority of the ...college-educated labor force in the U.S.,1 and employees are increasingly returning to the workforce after extended absences2. And of course, the workplace influence of millennials, who already make up half of the global workforce, is becoming more significant each year3. Likewise, we are closely watching the role that Generation Z will play in transforming the workplace. In the coming years, 61 million Gen Z job seekers will enter the workforce4, representing the most tech-savvy generation to date.

While all of these trends influence the ways companies support employees in building productive and rewarding careers, it is the human-machine interface that potentially presents the greatest challenges and opportunities for employees and employers alike. Already, machines are informing decisions, expanding reach and access, and increasing safety and productivity. Effectively working at the human-machine interface requires a commitment to developing employees with new skill sets and helping them learn and adapt to new environments5. In the workforce of the future, employees must learn how to delegate tasks to technology, combine human skills with those of a machine, and work within artificial intelligence-augmented processes6.

1 Butchireddygari, L. (2019, August 20). Historic Rise of College-Educated Women in Labor Force Changes Workplace. Retrieved from http://www.wsj.com/articles/historic-rise-of-college-educated-women-in-labor-forcechanges-workplace-11566303223 2 Wingard, J. (2019, February 13). Are Returnships The Key To Relaunching Your Career? Retrieved from https://www.forbes.com/sites/jasonwingard/2019/02/13/are-returnships-the-key-to-relaunching-yourcareer 3 Economy, P. (2019, January 15). The (Millennial) Workplace of the Future Is Almost Here -- These 3 Things Are About to Change Big Time. Retrieved from https://www.inc.com/peter-economy/the-millennial-workplace-of-future-isalmost-here-these-3-things-are-about-to-change-big-time.html 4 Morris, C. (2018, May 3). 61 million Gen Zers are about to enter the US workforce and radically change it forever. Retrieved from https://www.cnbc.com/2018/05/01/61-million-gen-zers-about-to-enter-us-workforce-andchange-it.html 5 Jacques Bughin et al. Skill shift: Automation and the future of the workforce. Retrieved from https://www.mckinsey.com/featured-insights/future-of-work/skill-shift-automation-and-the-future-of-the-workforce 6 Daugherty, H. J. W. P. R. (2019, November 19). How Humans and AI Are Working Together in 1,500 Companies. Retrieved from https://hbr.org/2018/07/collaborative-intelligence-humans-and-ai-are-joining-forces

LOCKheed martin solutions

Lockheed Martin is committed to building a trusted and ethical approach to human-machine collaboration. For instance, we use augmented reality tools in diverse applications such as supporting our ...product development quality assurance process.

  • Lockheed Martin Space is working on a technology initiative called MAIA, or model-based artificial intelligent assistant, which is an on-board virtual reality and augmented reality system for use by astronauts while in space. MAIA provides an interactive representation of the space vehicle and its environment, providing predictive capabilities and transforming human spaceflight.
  • Chapter Next is a new program to support employee success. This paid “returnship,” which extends 12 to 16 weeks, aligns participants who are returning to the workforce after two or more years with a job that complements their skills and abilities. Selected candidates benefit from technical training, professional development opportunities, and networking opportunities with a community of similarly experienced professionals who are already contributing to Lockheed Martin’s culture of innovation. Individualized mentoring further makes re-entering the workforce that much easier.
  • Our National Standards of Apprenticeship serve as a common framework for Registered Apprenticeship programs targeting skilled roles across our U.S. facilities. This year, we expanded to 13 apprenticeship programs including in non-traditional apprentice areas such as Electronics Associates, Software Technicians and Cyber Systems Security Engineers. Company-wide, we are investing $5 million in vocational and trade programs and creating 8,000 new apprenticeship and other workforce development opportunities through 2023.
  • Veterans and active military reservists represent more than 22% of our workforce, and we are proud to make even more career opportunities possible for veterans. We became one of the first companies to qualify some apprenticeship programs under the Veterans Apprenticeship and Labor Opportunity Reform (VALOR) Act. This enables eligible veteran apprentices to use GI Bill benefits toward stipends for housing, books, supplies, and other expenses.

Supporting Geopolitical Stability

Global Context

The globalization that has facilitated trade, cooperation, and interdependence over the past several decades shows no signs of slowing. The majority of the world’s renewable power capacity ...is being built in developing economies1. New innovations and investments in technology will continue to create stronger connections between nations, digital transformations that will foster more collaboration, and greater economic opportunities.

The International Energy Agency estimates that 850 million people around the world lack access to electricity, reflecting regional gaps in power infrastructure and economic leverage. In addition, global energy demand, assuming current policies, is expected to rise by 1.3% annually through 2040. Of this growth, low-carbon sources are predicted to provide more than half of total global electricity generation by 2040, with solar and wind leading the way2. At Lockheed Martin, we believe the private sector has an increasingly important role in addressing these gaps, supporting growing energy needs, and fostering geopolitical stability to support thriving societies.

1 New Energy Outlook 2019: Bloomberg NEF.” BloombergNEF, 2019, about.bnef.com/new-energy-outlook/ 2 IEA (2019), "World Energy Outlook 2019", IEA, Paris https://www.iea.org/reports/world-energy-outlook-2019

LOCKheed martin solutions

We provide turnkey energy storage systems designed to make the electric grid more efficient, cost-effective, clean, stable, secure, and responsive. And as renewable energy increases, grid planners face ...new challenges. Intermittent renewable energy creates uncertainty, leading to a growing need for large-scale energy storage that can ensure consistent availability and distribution. But the current dominant technologies in use today – pumped hydro – cannot sufficiently provide the durable, flexible, and distributed storage required. Lockheed Martin is developing a system to fit that need – GridStar Flow. GridStar Flow is an innovative redox flow battery designed to be a durable, flexible, scalable, and safe long-duration energy storage solution. The science behind GridStar Flow is coordination chemistry, which is used to produce water-based, engineered electrolytes that are designed to optimize battery performance. The electrolytes are stored in large tanks and pumped through cell stacks, which either charge the electrolyte or convert the energy stored in the electrolytes to electricity.

Building Stronger Economies with Innovative Energy Storage

Lockheed Martin’s GridStar® Flow system provides energy storage for consistent availability and distribution, addressing the uncertainties of intermittent renewable energy so growing economies can reliably power their communities.

. . . .
  • Scalable

    Scalable

    Since power and energy are decoupled and sized independently, GridStar Flow can be configured to meet a customer’s exact needs for a variety of use cases now and in the future.

  • Safe

    Safe

    Electrolytes are comprised of a mildly alkaline, water-based solution that is non-flammable and reduces the risk of fire.

  • Durable

    Durable

    Stores 6+ hours of energy with exceptional resistance to battery degradation, creating an estimated lifespan of 20 years or more.

  • Responsive

    Responsive

    The inherent flexibility and durability of GridStar Flow enables the system to respond to real-time market demands, providing customers with valuable optionality.

  • Low total cost of ownership

    Low total cost of ownership

    GridStar Flow is optimized to offer low total cost of ownership over the system lifetime. This includes all costs for initial installation as well as costs associated with system replenishment, operation and maintenance, and energy loss.

Reinforcing Confidence in Institutions

Global Context

Investors are increasingly engaged with the performance of environmental, social, and governance (ESG) factors that influence companies’ long-term success. Globally, sustainable investing ... assets in the five major markets stood at $30.7 trillion at the start of 2018, a 34% increase in two years1. Likewise, investors, insurance providers, and debt holders want assurance that companies are disciplined, enforce rigorous board oversight, and are future-proofed against risks such as climate change, cybersecurity, and human inequities. What’s more, the public’s trust in institutions has faltered over the last decade, with business trusted by just 56% and government trusted by just 48% of those surveyed in the annual global Edelman Trust Barometer2. We are deeply committed to doing our part to reinforce confidence in institutions, not only by investors, but by customers and members of the public as well.

Our Business Integrity core issue shows how we cultivate a culture of ethical conduct and workplace integrity that strengthens our relationships with employees, customers, and suppliers. This includes our willingness to maintain the highest standards in corporate governance, to go beyond the law in doing the right thing, to be transparent and forthright in the conduct of our business at all times, and to mentor suppliers to ensure their compliance with applicable regulations and our own stringent standards of ethical conduct.

1 2018 Global Sustainable Investment Review. (April 2019). Retrieved from http://www.gsi-alliance.org/ 2 2019 Edelman Trust Barometer. https://www.edelman.com/trust-barometer

LOCKheed martin solutions

We use an Agile Auditing approach, adapted from the application of Agile in software development, to add value to our internal auditing processes while ensuring that we follow established audit standards ...and processes. We also use artificial intelligence (AI), digital data analytics, and robotic processes to evolve the way we conduct audits to further increase employees' speed and efficiency. This innovative auditing system offers us greater flexibility to respond more quickly to identified risks, increases the breadth of our risk management activities, and saves resources without compromising quality. We maintain an audit plan according to a 12-month calendar, but as we learn of new risks, we update the plan on a rolling basis up to six additional months. This built-in flexibility allows us to constantly adjust the audit planning scope to address risks as needed, by monitoring them, promoting them to the audit plan, or determining if they can be retired.

Through our Agile Auditing approach, we also perform real-time risk assessment and mitigation. We constantly re-rank audits based on the nature of the risk, speed of the audit, and impact of the risk. Taking this a step further, we re-baseline the plan on a quarterly basis by evaluating our commitments, including their progress and their effect on downstream audits, and then determining changes to the plan as needed. In addition, our people are empowered to make decisions and take actions that begin mitigating risks as soon as they are uncovered, rather than waiting to complete the audit. Our Agile process also invites client involvement and feedback to help ensure the best risk mitigation solutions for all parties.

  • We remain the only U.S. aerospace and defense company named to the Dow Jones Sustainability Index (DJSI) World Index for the sixth consecutive year. DJSI World represents the top 10% of companies globally for excellence in sustainability performance.
  • Likewise, we provide an annual response to the CDP (formerly referred to as the Carbon Disclosure Project), and have been the only aerospace company to earn a place on the Climate Change “A” list for seven of the past eight years.

Facilitating Climate Resiliency

Global Context

Many government institutions and commercial customers are beginning to respond to climate issues that involve more intense weather events, longer droughts, changes in precipitation patterns, and ...rising sea levels. The impacts are far-reaching, affecting agriculture, natural resources, and human health. Governments and businesses, including Lockheed Martin, are weighing climate adaptation and mitigation strategies to prepare for the resulting impacts and respond with solutions such as disaster relief, emissions reduction, energy management, and natural resource conservation.

Investors are increasingly viewing climate change as a factor in their decision making1. In his most recent letter to CEOs BlackRock Chairman and Chief Executive Officer, Larry Fink, made the case for companies to deepen our understanding of climate risks; disclose our climate-related risks, actions, and preparedness; work with others in both the public and private sectors to help transition societies around the world to low-carbon energy; and “be mindful of the economic, scientific, social, and political realities during this energy transition1.”

To this end, we are working to anticipate future needs and develop solutions to meet them. Just as we develop solutions to facilitate our customers’ climate resiliency, we are also doing our part to build resiliency within our own operations, such as through energy efficiency programs, lighting upgrades, and other emissions reduction strategies.

1 Larry Fink's Letter to CEOs. https://www.blackrock.com/corporate/investor-relations/larry-fink-ceo-letter

LOCKheed martin solutions

Lockheed Martin is developing a state-of-the-art Geostationary Carbon Observatory, or GeoCarb, with the University of Oklahoma and NASA’s Jet Propulsion Laboratory. GeoCarb aims to advance our collective ...understanding of the global carbon cycle by mapping key carbon gases from geostationary orbit. Over time, this technology can contribute much-needed data to support climate adaptation and resiliency efforts. GeoCarb will allow NASA to see how different weather patterns influence carbon dioxide and methane concentrations and address unanswered questions in carbon cycle science, with a focus on the Americas. For example, to what extent does the Amazon River basin remove carbon dioxide from the atmosphere and store it in forests, and are methane emission estimates over the continental United States underestimated?

Safeguarding Data Reliability

Global Context

Data volume is growing at a staggering rate and has already grown so large it is measured in zettabytes. A zettabyte is one trillion gigabytes, an almost inconceivable number with 21 zeros. Thanks in part ...to 5G mobile networks, fiber optic connections, increased use of mobile devices, and other factors, the collective volume of the world’s data is predicted to increase from 33 zettabytes in 2018 to 175 zettabytes by 20251. If 175 zettabytes were stored on a stack of Blu-ray discs, it would reach the moon, 238,900 miles away.

The potential for more data to enhance decision making, anticipate needs, and safeguard critical systems, depends on our ability to organize, understand, and use it correctly. At present, only 10% of data is collected and maintained by IT systems in ways that allow easy, secure analyses and sharing2, and 80% of worldwide data is expected to be unstructured by 20253, impeding its use for analysis. If the world’s population is to enjoy the full economic and social benefits of data availability, we must protect, store, transfer, and use data ethically and responsibly.

1 DataAge 2025 - The Digitization of the World: Seagate US. https://www.seagate.com/our-story/data-age-2025/ 2 Schlosser, A., & Digital Trade and Data Flows. You may have heard data is the new oil. It's not. https://www.weforum.org/agenda/2018/01/data-is-not-the-new-oil/ 3 How to Tackle Dark Data. https://www.gartner.com/smarterwithgartner/how-to-tackle-dark-data/

LOCKheed martin solutions

  • Our global positioning system (GPS) satellites support the infrastructure of modern life, making up more than 60% of today’s GPS constellation. This year, the U.S. Air Force successfully launched its ...second next-generation GPS III satellite, built by Lockheed Martin. GPS III SV02 is designed to provide the Air Force with three times greater accuracy and up to eight times improved anti-jamming capabilities. It is part of a broader GPS ground control upgrade project that improves cybersecurity capabilities and positions the Air Force to better operate in contested, degraded, and operationally limited environments.
  • Also this year, we launched a new generation of space technology that allows satellites to change their missions in orbit with a software push and operate with much greater cybersecurity, thanks to new architecture that allows users to add capability through software. SmartSat-enabled satellites can also reset themselves faster, diagnose issues with greater precision, better detect and defend against cyber threats autonomously, and have on-board cyber defenses updated to address new threats.
  • Lockheed Martin’s Cyber Resiliency Level (CRL) framework is the world’s first, standard method to measure the cyber resiliency maturity of a weapon, mission, and/or training system, anywhere in its life cycle. The CRL framework was built as a companion to measurement efforts focused on a company’s cybersecurity posture, ensuring insight into cyber resiliency from a system’s conception to delivery to retirement.
  • We collaborated with Intel to deliver a hardened security solution based on second-generation Intel® Xeon® Scalable processors to help protect against cyber threats while providing more consistent service performance. The solution combines hardware, software, and firmware measures that isolate critical data and help protect shared resources such as cores, cache, memory, and devices to mitigate cyber threats.
  • We partnered with the University of Central Florida to open a new Cyber Innovation Lab on the university campus to help meet the growing need for cybersecurity talent and serve as a learning hub for students preparing for careers in this rapidly growing field.

Read about our Core Issues

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