TOP

Supply Chain Sustainability

Lockheed Martin has established sustainable supply chain programs that drive affordability and innovation across our value chain, focusing on creating long-lasting, leading opportunities to enhance environmental stewardship and social responsibility. To learn more about our sustainable supply chain management and to access available resources, visit our Supplier website.

Lockheed Martin understands that what we do today shapes what the world will become tomorrow. Lockheed Martin’s supply chain sustainability strategy includes efforts that align with environmental, social and governance (ESG) topics. We continuously evaluate and expand upon our efforts to strengthen our strategy while addressing emerging areas of concern to our stakeholders.

“Sustainability inspires us as corporate citizens and signals our values in all we do to keep the aerospace and defense supply chain a strong foundation for continued growth and success.”

Chris Stone

Supply Chain Vice President

Do What’s Right

Environmental

ENERGY UTILIZATION

WASTE MANAGEMENT

GLOBAL PRODUCT CHEMISTRY REGULATIONS

CLIMATE-RELATED RISK DISCLOSURE

SECTORIAL RESOURCES

Model Based Enterprise

Chemical Stewardship Strategy

Chemical Management Service Program

Global Regulatory Matters Publication

Packaging Guidelines

Respect Others

Social

SUPPLIER DIVERSITY

HUMAN RIGHTS

SECTORIAL WEBINARS

Small Business Strong

Conflict Minerals

Human Trafficking Supply Chain Risk Assessment

Uphold the Code

Perform with Excellence

Governance

INTELLECTUAL PROPERTY & DATA PROTECTION

EMERGING ISSUES & RISK ASSESSMENTS

Counterfeit Parts Prevention

Ethics Mentoring

Cybersecurity Readiness

Sustainability Intern Challenge

Supplier Sustainability Assessment

Supply Chain Sustainability Intern Program

Lockheed Martin’s summer Supply Chain Sustainability intern program provides teams of university students with real-world experience by engaging them to seek solutions to current supply chain challenges. Each challenge is sponsored by a functional team at Lockheed Martin. Students work together to research the challenge and ultimately provide recommended solutions. In 2022, we had 16 interns participate across four challenge areas.

We shifted our program’s focus for 2022 from idea generation to project implementation in order to maximize impact, taking into consideration the prior year’s ideas and current challenges. For example, one team of interns implemented a data analytics idea related to cybersecurity compliance across Lockheed Martin business areas, increasing efficiency and saving 20 working hours per month. In addition to time saved, the solution allows for consistent analysis of Controlled Unclassified Information and Covered Defense Information compliance across all business areas and enables program visibility, identifying vendor-specific capabilities and trends in compliance.

The Lockheed Martin intern program has become so successful that we engaged the International Aerospace Environmental Group (IAEG) to pilot an industry-level sustainability intern program. Interns who took part in the pilot researched what ESG factors are most important to the aerospace and defense industry. Lockheed Martin, Boeing, Collins Aerospace and BAE Systems participated in the pilot, enabling interns to be involved in discussions and meetings across companies and engage in industrywide collaboration. Results were provided to the IAEG Board of Directors, and the intern program will become an official IAEG program in 2023, which Lockheed Martin will manage. This program will help engage new talent in the aerospace and defense industry and generate innovative ideas.

Left to right: Gabriel Segura, Isha Gupta and Arjith Jegan

Supply Chain Sustainability Case Competition

In 2022, Lockheed Martin hosted its first Supply Chain Sustainability Case Competition. This competition brought teams of university students together to address how to prepare small businesses for the next business disruption within the context of ESG, and to introduce them to Lockheed Martin ESG efforts and potential career paths. To help bring a true small business perspective to the competition, judges included small business representatives from Lockheed Martin’s own supply chain. As a result of the competition’s success and its beneficial networking opportunities, we plan to make this an annual event. The 2022 competition winner was a team from Purdue University, who delivered an entire suite of solutions. The students shared their favorite parts of the case competition, which included being able to hear from industry professionals and learn about the different parts of Lockheed Martin; having the opportunity to network with Lockheed Martin’s supply chain professionals and small business leaders; and the openness of the case study, which allowed them to be more creative and open- minded in their solution. The topic that resonated with them the most was the impacts of the geopolitical climate.

Supply Chain Sustainability Forum

With the goal of accelerating ESG efforts in the aerospace and defense industry, Lockheed Martin, Airbus, Collins Aerospace, Boeing and other industry leaders, along with IAEG, established an industrywide ESG engagement working group, Work Group 11 - Aerospace Industry ESG Engagement , that includes a supply chain sustainability forum. In 2022, this working group held a two-part aerospace and defense industry-coordinated Supply Chain Sustainability Forum. Attended by 200 industry suppliers, the event focused on the importance of ESG and stakeholder engagement, and provided suppliers with an industrywide perspective on the obligations driving us to act. The event was promoted in publications and supplier portals to demonstrate harmonization. In 2023, IAEG and the Work Group 11 Take Off sub-team plan to hold quarterly industry forums on relevant topics.

Supply Chain Sustainability Assessment

In 2022, we performed a Supply Chain Sustainability Assessment, expanding the lens of suppliers from the last assessment, in 2019, to include a broader range of business sizes, particularly medium-sized suppliers ($1 million-$10 million). Findings were shared with Lockheed Martin's supply chain professionals to draw broader awareness of our sustainability focus. In addition, benchmark reports were provided to participating suppliers to serve as a helpful and comparative view of other suppliers in the aerospace and defense industry.

Immediate positive outcomes resulting from the assessment include Lockheed Martin’s Ethics organization kicking off the next phase of its Ethics Supplier Mentoring program with the 25 suppliers who expressed interest in the program via the Supply Chain Sustainability Assessment. In addition, we saw a 100% increase from the 2019 assessment in suppliers with sustainability strategies or plans, demonstrating recognition among our suppliers of the growing importance of sustainability.

In addition, Lockheed Martin took part in a request for proposal for a reusable sustainability assessment solution through IAEG, to increase effectiveness in addressing business-critical ESG topics throughout the aerospace value stream. Work Group 11 - Aerospace Industry ESG Engagement was established and is working to identify the best third-party solution.

Cybersecurity Small Business Pathfinder Program

In 2021, Lockheed Martin launched a new program providing cybersecurity support to an initial selection of small businesses based on specific criteria. This innovative program included 50 openings for small businesses to receive third-party expertise for one year in the areas of phishing attempts, training and perimeter vulnerability scanning. In 2022, we maintained a cohort of 36 small businesses and continued programming that directly enhanced their cybersecurity programs. Based on initial feedback from participants, we plan to continue the program in 2023 and add 51 additional openings for small businesses to gain phishing services.