Helicopter in flight.

Energy and Carbon Management


Objective

Manage energy use and GHG emissions associated with company operations, including efforts to use renewable energy and promote energy and water efficiency.

Management

The management of Lockheed Martin’s environmental footprint begins at the top levels of leadership and extends to employees throughout the company. The Nominating and Corporate Governance Committee of our Board of Directors sets the direction of our resource efficiency program and reviews Environment, Safety & Health (ESH) performance. The ESH Leadership Council and the Facilities and Operational Leadership Teams disseminate the strategic direction and goals to drive efficiency, cost avoidance and atmospheric carbon emissions reductions across our operations. We aim to develop solutions that reduce both our environmental impact and related costs at our facilities enterprise-wide.

Go Green Goals

The Lockheed Martin corporate ESH Management System is certified to ISO 14001 and ISO 45001[1], and sets a company-wide approach to championing resource use efficiency. The system provides direction that takes into consideration the potential risks of non-compliance with law, reputation loss and business growth restraints. To ensure consistent execution across the enterprise, the ESH Management System incorporates design, implementation and oversight processes of the ISO Standards. Our ESH Management System stands up to rigorous internal scrutiny, including peer assessments, self-assessments and internal auditing, and the corporate certificates allow for the inclusion of individual site certification. Thus far, we have 41 sites certified under the corporate ISO 14001 certification, and 26 sites certified under the corporate ISO 45001 certification. We are also able to leverage lessons learned from each audit conducted by the certification body and continuously improve the ESH Management System.

Our Go Green program focuses on reducing atmospheric carbon emissions through energy efficiency and use of renewable energy, reducing facility water use and reducing waste generation to propel responsible growth. Annually, teams of experts across the corporation evaluate potential resource savings projects at each of our facilities. In 2020, the Lockheed Martin Facilities teams completed 64 energy efficiency projects that resulted in annual savings of 47.4 million kWh of electricity, 185,900 MMBTU of natural gas and avoiding $4.6 million in utility and maintenance costs. Lighting, waste heat recovery, building envelope, HVAC and compressed air projects netted significant savings across the corporation.

In 2020, to best reduce COVID-19-related risks for our employees, we conducted virtual events in place of in-person site energy Structured Improvement Activity (SIA) events and focus reviews. The ESH and Facilities teams leveraged remote access capabilities to continue to find energy efficiency opportunities at Lockheed Martin’s sites. We focused our 2020 efforts in part on our large steam plants, and we collected evidence and developed business cases to decentralize two of the largest steam plants in our portfolio at the Marietta, Georgia and Waterton, Colorado sites. We plan to replace large aging central steam plants with smaller, more energy-efficient equipment in each building. In addition to providing significant energy savings, these projects will reduce air emissions associated with the generation of steam. This plan builds upon the recent success of our Moorestown steam decentralization project, which received recognition as a 2019 ENERGY STAR Top Project and a 2020 Environment and Energy Leader Top Project.

Since the inception of the Go Green program in 2007, Lockheed Martin has been able to reduce energy consumption by 19 percent, atmospheric carbon emissions by 47 percent and waste to landfill by 51 percent. The challenge we face is driving year-over-year absolute improvements in our Go Green Program as we simultaneously grow our business. In addition, the COVID-19 pandemic has presented unique challenges, such as employee energy usage reductions being offset by increased requirements for fresh air intake by heating, ventilation and air conditioning (HVAC) systems. We also experienced changes in waste generated by employees and by production operations.

In 2020, we launched an internal Go Green Dashboard to share our progress towards the goals. All Lockheed Martin employees can access company-wide data on waste generation, atmospheric carbon emissions, green building achievements, energy use and water consumption. Users have the ability to view data by site, Business Area or the company as a whole. We aim to use the dashboard to engage employees, answer questions and encourage the development of employee-driven programs.

In setting our new fourth generation Go Green goals, we used a science-based methodology established by the Center for Sustainable Development to exceed science-based targets (SBT) for our carbon emission reductions with a baseline year of 2015 in alignment with SBT recommendations. We established an intermediate energy intensity reduction goal for 2025 on our path to 2030. An intensity target was established to account for business growth and contraction. To establish an intensity goal, we studied (using regression analysis) intensity factors against which to normalize and settled on occupancy as the best indicator for our operations. A 2016 baseline was used for the intermediate goal versus 2015 (GHG longer-term goal) due to challenges associated with a merger and acquisition activity around that time.

A&D Science-Based GHG Performance Scores (1.5C)

Lockheed Martin
Company A
Company C
Company B
Company B.1
Company B.2

The 1.0 threshold results from the ratio of the actual emissions to allocated emissions, based on a company’s contribution to GDP.

In prior years our analysis has used a model calibrated to a target of limiting global temperature rise to 2C.  In 2018, based on a report by the IPCC, the Context-Based Carbon Metric was updated with a global target of 1.5C.  Lockheed Martin has assessed our context-based metric based on the latest version of the model.  In doing so the baseline year for the model has moved from 2010 (via the 2.0C model) to 2015.  The score of 1.0 is assigned to the 2015 baselines to show change over time.

 

 Go Green Goals


2030 Goal: Reduce carbon emissions per dollar gross profit by 70%. 2020 Performance: 39%. 2050 Goals: Reduce energy per occupant by 14%. 2020 performance: 14%. Reduce waste per occupant by 11%. 2020 performance: 9% Energy cost avoidance was $25 million in 2020.
 

 Resource Efficiency Data


Scope 2 Energy Consumption (MWh)

GOAL
2,000,000
1,500,000
1,000,000
500,000
0

1,597,026

 

1,561,453

 

1,592,353

 

1,577,544

 

1,521,042

 
20162017201820192020

Water Used (Billion Gallons)

GOAL
1.5
1.2
0.9
0.6
0.3
0.0

1.16

 

1.32

 

1.23

 

1.36

 

1.32

 
20162017201820192020

Total Scope 1 and Scope 2 GHG Emissions (MT CO2e)

GOAL
1,000,000
800,000
600,000
400,000
200,000
0

918,635

 

844,373

 

819,548

 

771,435

 

790,535

 
20162017201820192020

Green Power (MWh)

GOAL
350,000
300,000
250,000
200,000
150,000
100,000
50,000
0

300,000

 

303,746

 

307,378

 

321,941

 

322,000

 
20162017201820192020

Waste Generated (lbs)

GOAL
80,000,000
70,000,000
60,000,000
50,000,000
40,000,000
30,000,000
20,000,000
10,000,000
0

49,030,627

 

59,578,521

 

60,631,125

 

61,566,290

 

57,872,526

 
20162017201820192020

2020 Waste by Destination (lbs)

Total Waste Recycled29,153,717
Total Waste to Landfill16,407,719
Other Disposal Methods[2]12,276,790
Total Waste Generated[3]57,872,526

[2]Includes waste-to-energy, incineration and additional alternative forms of disposal.
[3]Total Waste Generated includes Regulated (Hazardous), Non-Hazardous, Universal and Other waste streams.

 

2020 External Recognition


ENERGY STAR

  • ENERGY STAR Partner of the Year (2nd year in a row)
  • Lakeland—ENERGY STAR re-certification
  • Fort Worth Building 200—ENERGY STAR re-certification
  • Shelton Overhaul and Repair Facility—ENERGY STAR Challenge for Industry Achiever

Environment and Energy Leader Top Project Awards

  • Moorestown Steam Decentralization
  • Rotary and Mission Systems Troy—ENERGY STAR Challenge for Industry Achiever in one year

Department of Energy Better Plants Challenge

  • Formally re-entered the program at the challenge level after having met the first set of goals (over ten-year period)

[1] While the corporate ESH Management System is certified that does not mean all of the site systems are automatically certified. Individual sites must apply for certification separately.

2020 SMP Goals

Reduce energy use by 25%, scope 1 and 2 carbon emissions by 35% and water use by 30%.

Achievement

Partial Success:

Energy: Our critical operations remained online throughout 2020. Impacts to energy usage included increased HVAC/air handling activity due to COVID-19 operating protocols combined with a minor offset in plug load from fewer employees working onsite.


Carbon: Our critical operations remained online throughout 2020 and energy and fuel usage remained consistent compared to the prior year.


Water: Our critical operations remained online throughout 2020. The site water usage was lower than the prior year driven mainly by large campuses with lower employee population, kitchen/cafeteria activity, etc.

 

Reduction against 2010 Baseline: 

Energy: 18%
Carbon: 38%
Water: 22%

Increase square footage of facilities with green building certifications.

Achievement

Success: In 2020, we reached 3.7 million square feet of green buildings. The MFC Orlando Southpark Center LEED certification added approximately 134,000 square feet to our green building footprint in 2020.

Increase annual renewable energy consumption.

Achievement

Success: In 2020 we consumed 322,000 megawatt hours (MWh) of clean energy, comprising nearly 13,396 MWh of onsite renewables, approximately 248,580 MWh of renewable energy certificates (RECs) and 60,024 MWh through Power Purchase Agreements (PPAs).

Help energy customers reduce carbon emissions by at least twice the carbon impact of our business operations.

Achievement

Retired: With the divestiture of our Distributed Energy Solutions Group in November 2019, we retired this goal last year.

Energy and Carbon Management
Identifying Energy Efficiency Opportunities

We consistently assess our operations and work in search of opportunities to improve our energy efficiency and reduce our resource consumption, GHG emissions and costs. One example of these efforts in 2020 is the completion of a multi-year project to upgrade to all LED lights in the main F-35 production building at our Fort Worth site. We completed this project without impacting the F-35 production rate, and we significantly decreased our energy use and improved the lighting in the production area. Another example is a multi-stage project at our Grand Prairie facility, which focused on installing automatic temperature setpoint adjustments and HVAC occupancy sensors to reduce our electricity usage.

Energy and Carbon Management
Lockheed Martin ENERGY STAR Partner of the Year

Every October, Lockheed Martin celebrates Energy Awareness Month to bring attention to the role that energy plays in our work. The Aerospace manufacturing industry constitutes only three percent of the 26 quadrillion thermal units of energy that the entire U.S industrial sector consumed in 2019. In aerospace terms, that 26 quadrillion thermal units of energy is equivalent to a fully fueled C-130J Super Hercules taking off almost 2 million times. In 2020, we also developed new goals to reduce carbon intensity emissions by 70 percent by 2030 and reduce energy intensity use by 14 percent by 2025 against a 2015 baseline, making energy efficiency an essential component of our environmental stewardship strategy. We are proud that the U.S. Environmental Protection Agency (EPA) recognized Lockheed Martin twice as ENERGY STAR Partner of the Year for Industrial Energy Management, the highest level of EPA recognition. As we work towards our 2025 and 2030 energy goals, we continue to identify and prioritize efficiency opportunities to work smarter with less energy.

Energy and Carbon Management
Climate-Related Risks and Opportunities

At Lockheed Martin, climate-related risk and opportunity drivers can impact our long-term resiliency as a leader in global security and aerospace. We believe it is our responsibility to understand and actively address these drivers to foster a strong business model for the future. In 2020, we released our first Task Force on Climate-related Financial Disclosures (TCFD)-aligned report on climate-related risks and opportunities. This report reflects our 2020 responses to the Dow Jones Sustainability Index (DJSI) and CDP, and our continuing research on how physical and transitional climate-related risks may impact us in years to come. Our qualitative climate-scenario analysis and risk assessment is based on two possible futures—one that limits global temperatures rising no more than 2 degrees Celsius (°C) by 2100, and another where global temperatures exceed 2 °C by 2100. We evaluated climate-related risk drivers within the parameters of each scenario and assessed qualitatively the likelihood and impact of these risk drivers on our facilities, production operations, supply chain and workforce. Please visit our ESG Portal to learn more about our 2020 disclosure, including the assessment results, implications and next steps.

Energy and Carbon Management
Identification of Water-Stressed Facilities and Water Performance

Our new Go Green goals shift our focus from across-the-board reductions to zeroing in on sites located in water-stressed regions. Using the Aqueduct Water Risk Atlas, we have identified our sites in the highest water-stressed regions today and those predicted to be in water-stressed regions out to 2040. That data is used to prioritize and execute site water balances and associated water conservation activities. Based on preliminary analysis of water performance across our Business Areas, we have identified several major sites with significant year-over-year reductions. We are working with these sites to understand their reduction drivers.

Energy and Carbon Management
Increasing Renewable Energy

In 2020, Lockheed Martin approved a plan and started work on a 20-megawatt, on-site, single-axis tracking photovoltaic system at our Palmdale, California facility. Once completed, this will be one of the largest “behind the meter” installations in the United States. Additionally, our Fort Worth site entered into an agreement to purchase power generated by a 15-megawatt solar facility in west Texas over a 15 year period. That system is expected to go live in 2021.

Energy and Carbon Management
Waste Reduction at Lockheed Martin

Our waste program is focused on reducing total waste using the management hierarchy modeled after the EPA waste management pyramid. Actions and improvement activities for our operations are prioritized based on the minimization of impact and responsible management of materials. In 2020, the Go Green Waste Metric Scorecard was developed to track the progress of the external waste metric and the internal key program objectives. These objectives include specific activities that further advance improvement in hazardous waste management, management of construction and demolition materials, employee engagement/recognition and external certifications. All of our efforts are governed by our policy on waste disposal and recycling. Lastly, we have a corporate-sponsored program to address employee e-waste, which collected over 60,000 pounds in 2020.

Energy and Carbon Management
ESH Excellence Awards

The Lockheed Martin ESH Excellence Awards is an annual, company-wide program run by the Corporate Environment, Safety & Health (CESH) team. The program aims to recognize projects or teams that have made a significant contribution to the business through their dedication to improving performance. We encourage employees to submit their accomplishments from the past year in categories such as superiority in customer satisfaction, leadership, tools/processes that improve efficiency and affordability. We specifically look for a connection between the employee success story and broader Lockheed Martin efforts, including Go Green, Target Zero, innovation and compliance. In 2020, employees submitted 40 projects for consideration.

Energy and Carbon Management
Earth Day

With the onset of the pandemic, our plans to hold over 90 Earth Day events across the company in 2020 to commemorate Earth Day’s 50th anniversary were disrupted and postponed. Staying true to our innovative and problem-solving culture, we instead coordinated a series of virtual events to coincide with the 50 ½ anniversary of Earth Day on October 22, 2020. The celebration offered a variety of ways to participate including webinars, photo contests, sculpture building from recycled materials and lunch and learn events. One corporate-wide event included a leadership panel session and a guest speaker dissecting climate change impacts on business and society. All events aimed to inspire and encourage individuals to take actions towards a sustainable future. As a direct result, no bigger statement could have been made than by the participation of hundreds of employees coming together in adverse times echoing a unified motto of “My Actions Have Big Impacts!”

Energy and Carbon Management
Chemical Stewardship at Lockheed Martin

Lockheed Martin’s Chemical Stewardship program outlines the business strategy and supporting processes that reduce risks associated with expanding global product and process chemical regulations and the use of hazardous chemicals. We have reduced, and seek to further reduce, the use of specific hazardous chemicals by implementing a process and corporate procedure to identify and replace materials that contain those chemicals with less hazardous alternatives. Our Chemical Stewardship program helps improve visibility of chemicals contained in our products and processes and enables engineers to more efficiently select parts and materials that do not contain hazardous chemicals. Lockheed Martin prioritizes the research and development (R&D) needs for material replacement projects across programs, with emphasis on projects that include non-chromated coatings and that reduce the use of materials containing cadmium and volatile organic compounds (VOCs), while ensuring customer and performance requirements are met. Additionally, effective internal partnerships have been recognized as key to successful chemical stewardship, driving collaboration among Engineering, ESH, Global Supply Chain Operations and Enterprise Risk and Sustainability. We partner with universities and industry groups to advance R&D efforts for replacement technologies. For example, we are continuing to work with the University of Massachusetts Toxic Use Reduction Initiative (TURI) group to test alternatives for hexavalent chromium conversion coatings. We are advancing our capabilities in order to reduce risks, inform design and enhance product sustainability.

Energy and Carbon Management
2020 Air Force and Secretary of Defense Awards for Environmental Excellence in Weapon System Acquisition

F-35 ESH and Materials and Processes, in cooperation with Production, Sustainment and subcontractors, have been successful integrating chemical replacement projects on the F-35 program. Pollution prevention and chemical replacement projects are actively worked (starting with comprehensive lists of chemicals used in all hardware) to reduce or eliminate hazardous materials like hexavalent chromium, cadmium and others. Building off existing non-chromated structural primers in use since 2008, non-chromated fuel tank coatings and fuel tank touch-up coatings are now approved for F-35, which significantly reduce the amount of hexavalent chromium on the aircraft and reduce exposure to aircraft maintainers. Additionally, non-chrome pretreatments are under investigation. A cadmium-free plating is also in the process of implementation for landing gear and the leading edge flap assembly. Other ongoing replacement projects include isocyanate-free topcoats, methylene chloride free paint strippers and many others. These efforts improve F-35 sustainability, reduce customer maintainers occupational exposure to chemicals and harmonize with customer goals for hazardous materials elimination. The customer recognized these accomplishments by awarding Lockheed Martin and the F-35 Joint Program Office the 2020 Air Force and Secretary of Defense awards for Environmental Excellence in Weapon System Acquisition.

Resource Efficiency

TOP