At Lockheed Martin, we integrate sustainability throughout our business strategy. Our approach to managing our sustainability performance begins with our Sustainability Management Plan (SMP). Our SMP provides a strong framework to clearly define our goals and drive our sustainability progress.
Core Issues Assessment Process
Our Assessment Process
Lockheed Martin performs a formal core issues assessment every five years to ensure we continue to prioritize issues that are relevant to our business and matter most to our stakeholders. Feedback is key to this process and involves engaging with a diverse group of global internal and external stakeholders, including employees, suppliers, customers, investors, academia and nongovernmental organizations through surveys, interviews and other outreach. The inputs are compiled and used to narrow down a core group of sustainability issues most material to our stakeholders and business.
These results are compared to business sector-specific results identified by an artificial intelligence tool that performs materiality analysis by assessing corporate sustainability reports, annual reports and SEC filings; scanning mandatory regulations; and targeting media focus on a given issue to provide broader external sentiments on sustainability issues. We also compare our results with the list of financially material issues outlined by the Sustainability Accounting Standards Board (SASB) for the Aerospace and Defense (A&D) sector. These data sets help cross-check, validate and prioritize the core issues that will guide Lockheed Martin’s SMP for the next five years.
Our Sustainability organization oversees the core issues assessment process. The Lockheed Martin Risk and Compliance Committee is the current vice president-level committee with specific responsibilities for oversight of elements of our sustainability initiatives. Our Chief Executive Officer provides final approval of the core issues, which are then presented to the Nominating and Corporate Governance Committee of the Board of Directors. After the core issues are established, we work with internal stakeholders to create specific sustainability goals which we use to track our performance. These goals are approved by both our Chief Financial Officer and our Chief Operating Officer.
Our Core Issues
The 13 core issues that comprise Lockheed Martin’s 2025 SMP are grouped into four priority categories.
At Lockheed Martin, we have developed processes to monitor emerging issues and continue to evolve our sustainability efforts between our formal five-year core issues assessments. Our dedicated Sustainability organization includes experienced and expert staff who maintain currency with global program and reporting compliance requirements, emerging priorities and trends. In addition, we actively participate in sector-specific and broad industry organizations and forums, and conduct formal and informal benchmarking of our programs, priorities and goals. As a company, we maintain active engagement with our investors, customers, and a broad range of both internal and external stakeholders.
Our SMP goals are regularly reviewed through our sustainability governance structure and can be retired and/or updated, if necessary, based on our progress and the changing needs of our business. If specific changes to our goals and/or core issues are required, we engage the Sustainability Management Team and affected business areas and/or functions to analyze and modify appropriately. Additionally, our annual SMP process includes routine monitoring and measurement of progress toward core issue goals, and reviews of current business practices against relevant sustainability markers.
Beyond the SMP
The 13 core issues that are the focus of our current SMP are not the only sustainability issues that Lockheed Martin considers important. For other key areas addressed and managed in conjunction with our specific SMP framework, visit the Beyond the SMP section of our website.