We implement a comprehensive total waste reduction strategy that focuses on minimizing the waste our facilities generate and ensures that the waste generated at our facilities is properly handled according to local, state and national regulations. To do this, we consider packaging from our supply chain, reuse and repurposing of materials, and focused employee engagement to promote waste stewardship.

Lockheed Martin committed to reducing waste per occupant by 6% over a four-year growth scenario by 2025. The goal was created in 2022 to reflect the ways in which COVID-19 changed the nature of our business, as a larger proportion of employees are now remote, impacting our facility occupancy and related waste metrics. In 2023, we achieved a 13% reduction of waste per occupant over a four-year growth scenario, exceeding our goal ahead of schedule. With the early achievement of this goal, we are now focusing on project-based goals across our business areas to drive further reductions with an emphasis on circularity.

Our efforts reduce waste sent to the landfill and for incineration. Waste streams contributing to the goal include hazardous and non-hazardous waste, universal waste and other waste streams, such as office furniture.

Waste management and disposal activities are governed by our Waste Disposal and Recycling internal corporate procedure. Performance is reported quarterly to our vice president, Environment, Safety, Health and Sustainability and annually to the board of directors. A corporate-wide waste reduction working group meets monthly to collaborate on waste reduction efforts and share related best practices.

In 2023, sealant recertification efforts were completed at our Camden, Arkansas, site, extending the shelf life of the materials by six months. This effort eliminated approximately 4,250 pounds of waste generated and the need to purchase new sealant that would otherwise take place with product expiration.

Lockheed Martin has a robust process for the management and disposal of hazardous waste generated by our operations. Our Waste Disposal and Recycling internal corporate procedure, which applies to all Lockheed Martin operations, describes the minimum requirements for hazardous waste generation, storage, transportation and disposal. This procedure is implemented to protect the environment, ensure regulatory compliance and minimize risk. All Lockheed Martin operations are required to use hazardous waste transporters and disposal facilities that have undergone rigorous assessments and are approved by the Environment, Safety, Health and Sustainability team. These assessments look at factors such as hazardous waste disposal facility operations, design and environmental controls, permitting and regulatory compliance, management systems, financial and insurance data, and transportation and safety metrics. Approved hazardous waste transporters and disposal facilities are regularly reassessed.

Our enterprise Chemical Management Service program has aligned the chemical replenishment process with consumption rates as opposed to schedule-based reordering. Subsequently, our material consumption is within the useful shelf life of a chemical so that it can be used before expiration. The program also distributes common inventories across multiple areas or locations. These strategies reduce the amount of excess and waste chemicals that are generated at our sites. The chemical management program encompasses approximately 80% of the chemicals that Lockheed Martin procures.