Lockheed Martin

RATING

SECTOR

Aerospace & Defense

WEBSITE

CONTACT

Lockheed Martin Corporation
6801 Rockledge Drive
Bethesda, MD 20817
The U.S.

STOCK EXCHANGE

LISTING

  • Dow Jones Sustainability Indecis – for Seventh Consecutive Year
  • CDP: Climate Disclosure A-  Supplier A-
  • GRI Index
  • #31 Best Employers for Veterans 2020
  • #63 World’s Best Employers 2020
  • #53 Just Companies 2021
  • #44 Best Employers for New Grads 2020
  • America’s Best Employers By States 2020
  • #236 Best Employers for Women 2020
  • #145 Global 2000 2020
  • Best Management Consulting Firms 2020
  • #380 Best Employers for Diversity 2020
  • #67 America’s Largest Public Companies 2018 
  • Black Engineer Magazine: 5th consecutive year as #1 Top Corporate Supporter for HBCUs
  • Defense News: #1 in Top 100

EMPLOYEES

110,000

CHIEF SUSTAINABILITY OFFICER

Leo S. Mackay

AWARDS

  • Corporate Responsibility Magazine: 100 Best Corporate
  • Citizens List
  • JUST Capital: 1st of 16 Aerospace & Defense companies, and 41st of 922 companies overall
  • Apex Awards: Award of Excellence for Electronic Media
  • Sustainable Purchasing Leadership Council: Outstanding Case Study Award

CONTENT SOURCE

FURTHER READING

Report created by Katerina Vargova

Company Title

SECTIONS :  Sustainability    Evaluation  •  Progress  •  Watch  •  Overview

Company Activity

Headquartered in Bethesda, Maryland, Lockheed Martin is a global security and aerospace company that employs approximately 110,000 people worldwide and is principally engaged in the research, design, development, manufacture, integration and sustainment of advanced technology systems, products and services.

The company operates through four segments. The Aeronautics segment is engaged in the research, design, development, manufacture, integration, sustainment, support and upgrade of military aircraft, including combat and air mobility aircraft, unmanned air vehicles and related technologies. 

The Missiles and Fire Control segment provides air and missile defence systems; fire control systems; manned and unmanned ground vehicles, and energy management solutions. 

The Rotary and Mission Systems segment provides design, manufacture, service and support for a range of military and civil helicopters; mission systems and sensors for rotary and fixed-wing aircraft; simulation and training services, and unmanned systems and technologies, among others. 

The Space Systems segment is engaged in the research and development, design, engineering and production of satellites, strategic and defensive missile systems and space transportation systems.

Company Sustainability Activity

Lockheed Martin’s Sustainability Management Plan takes a comprehensive approach to its business planning and performance so that it can drive shareholder returns, strengthen job creation, reduce its environmental footprint, and make a positive impact on communities where they live and work. Lockheed Martin plan has five critical areas of focus: 

Business Integrity: Lockheed Martin upholds a culture of ethical conduct, encouraging employees to “voice our values,” so Lockheed Martin conducts business with the utmost integrity and accountability.

Employee Wellbeing: Lockheed Martin creates an inclusive and engaging workplace environment that promotes a spirit of innovation and encourages high performance.

Product Impact: Lockheed Martin creates technologies and capabilities that enable its customers to save lives, protect the environment, and spur shared progress.

Resource Efficiency: Lockheed Martin continually improves the efficiency of its design and production processes to deliver its innovative products in a way that also reduces waste and mitigates environmental impacts.

Information Security: Lockheed Martin secures its infrastructure and operations against cybersecurity attacks and expands access to preventive technologies to its customer base.

Highlights

  • Achieved $4 billion in product sales with direct, 2020 measurable benefits to energy and advanced infrastructure resiliency
  • Achieved ≥ $700M incorporate cost and supply 2020 chain efficiencies
  • Generated $1 billion of life-cycle cost reductions from 2020 manufactured products related to the use of resources and impacts on human health and the environment.

Targets

  • By 2030, reduce carbon emissions per $ gross profit by 70%
  • By 2025, reduce energy per occupant by 14% 
  • By 2025, reduce waste per occupant by 11%

Business Integrity 

  • Achieve 100% completion rate of applicable employee training on business courtesies and international Business Conduct Compliance Training (BCCT) modules.
  • Achieve 100% completion rate of applicable training on ethics for business consultants.
  • Meet or exceed the global benchmark for Ethics Index based on All Employee Survey.
  • Maintain transparency of hardware exports made without regulatory authorizations as a percentage of all exports.
  • Increase participation in ethics supplier mentoring program

Product Impact 

  • Maintain or reduce instances of counterfeit parts in delivered systems.
  • Track and report product failure or nonconformance due to manufacturing processes.
  • Add criteria to fully identify cost drivers early in the product design cycle within each business segment’s proposal planning and proposal review processes.

Employee Wellbeing

  • Develop the best workforce for customers by increasing representation of women, people of colour, veterans, and people with disabilities
  • Increase employee participation in company-sponsored diversity events, Business Resource Groups (BRGs), and leadership associations
  • Maintain a lower voluntary attrition rate among top-performing employees as compared to the
  • employee population
  • Increase succession planning for senior leadership
  • Achieve an intern conversion rate of greater than, or equal to, 50% conversion
  • Achieve or outperform day-away case and severity rate goals

Resource Efficiency

  • Reduce energy use by 25%, scope 1 and 2 carbon emissions by 35% and water use by 30%.
  • Increase square footage of facilities with green building certifications.
  • Increase annual renewable energy consumption
  • Help energy customers reduce carbon emissions by at least twice the carbon impact of their business operations.

Information Security 

  • Achieve annual recertification of EU-U.S. Privacy Shield Framework.
  • Monitor employee cybersecurity engagement to counter malicious email threats and monitor the number of vulnerabilities per device on core IT networks.
  • Monitor data loss incidents within core IT networks for business operations.
  • Track two other proprietary goals to improve the security of IT networks.

Progress

Energy and Carbon Management 

  • Reduced energy use by 22%, carbon emissions by 39% and water use by 20% since 2010
  • Operated 24 Leadership in Energy and Environment Design (LEED), one Building Research Establishment Environmental Assessment Method (BREEAM), and nine ENERGY STAR certified buildings, totalling 3.5 million sq. ft. of green buildings, an increase of 45% since 2015.
  • Consumed 321,941 megawatt-hours (MWh) of clean energy, comprising 307,782 MWh of renewable energy certificates (RECs) and 14,159 MWh of on-site energy generation. In 2018, Lockheed Martin consumed 307,378 MWh of renewable energy.
  • Enabled carbon emissions savings of 1,027,634 metric tonnes of carbon dioxide equivalent (MTCO2e) for its customers, compared to its operational emissions, net of RECs, of 775,997 MTCO2e.
  • 41 energy efficiency and carbon reduction projects, including HVAC, lighting, building control systems, and retro-commissioning. These projects result in an annual energy reduction of an estimated equivalent of 45 million kilowatt-hours (kWh), with an estimated $3.9 million in recurring annual cost avoidance.
  • 8 HVAC projects were completed, resulting in an approximate equivalent of 4.9 million kWh of energy savings and more than $600,000 in recurring annual cost avoidance.
  • 8 building control system projects were completed, resulting in an approximate equivalent of 6.8 million kWh of energy savings and nearly $600,000 in recurring annual cost avoidance.
  • 13 lighting projects were completed, resulting in an approximate equivalent of 22.9 million kWh of energy savings and more than $1,700,000 in recurring annual cost avoidance.
  • Since 2008, installed 13 on-site renewable energy systems, including 12 solar systems and one biomass facility, for a total of 9.3 MW of capacity.

Certificates

United Nations Sustainable Development Goals

United Nations SDGs Compliance

The following section aligns current company-wide sustainability initiatives with the UN Sustainable Development Goals. Although not explicitly stated, Lockheed Martin has attempted to be compliant with SDGs.

SDG 7

  • Lockheed Martin is using its engineering and manufacturing expertise to advance renewable energy generation systems to help power the world. Lockheed Martin and teammate Concord Blue are building a power generation facility that will provide a new, clean energy source to meet the needs of 5,000 homes and businesses in Herten, Germany. The five-megawatt power generation facility will transform forestry waste into power using Concord Blue’s Reformer® technology, which converts waste to energy through advanced gasification. At the same time, Lockheed Martin is maturing technologies to create energy from the ocean, to include Ocean Thermal Energy Conversion (OTEC), wave and tidal power technologies, for use in Europe, Asia and other markets.
  • Lockheed Martin manages innovative and successful commercial, industrial and residential energy efficiency (EE) programs for many of the United States’ utilities including Pacific Gas & Electric, Pepco, Con Edison, Energy Trust of Oregon, Southern California Edison and many more. Under these partnerships, Lockheed Martin is working to ensure each customer conserves energy, increases operation efficiencies, maximizes capital spending and does their part to protect the environment. Additionally, the Lockheed Martin energy storage group partnered with Convergent Energy + Power, an integrated energy storage asset developer, to complete a 100 MWh energy storage system in Boothbay, Maine. The energy storage project demonstrated that the electricity grid can be improved and made more reliable in a clean, efficient way — while saving electricity users money.

Secondary SDGs: 8, 10, 13 

SDG 8

  • Ensuring all employees have the knowledge, skills, and work assignments to achieve performance goals in a dynamic business environment.
  • 5,217 employees participated in the tuition reimbursement program
  • 560 early career leaders participated in the Leadership Development Conference
  • 1,518 employees attended enterprise functional training programs (Finance, Capture, Corporate Strategy, Program Management)
  • 7,263 leaders participated in enterprise leadership development programs
  • 632 participants in Program Management

SDG 10

  • Creating a workplace that fosters a sense of belonging and where the diverse talents and unique perspectives of its people drive affordable and innovative solutions for its customers and business success.
  • Launched the Women in the Workplace initiative to increase the representation of women across the company, ensuring that hiring and promotions are fair and offering leaders as many opportunities to engage, champion, and lead diversity-related dialogues and events that help develop all leaders as champions of diversity and inclusion.
  • Develop the best workforce for its customers by increasing representation of women, people of colour, veterans, and people with disabilities.

SDG 13

  • Go Green program aligns with Lockheed Martin ESH Policy objectives to reduce environmental, operational, and cost risks in its business practices and facility processes. 
  • Each year, teams of energy and water experts across the corporation evaluate potential energy and water savings projects. 
  • Propel responsible growth and contribute to a more sustainable future for its employees, communities, and shareholders.

Evaluation

Lockheed Martin is listed in leading indices as Dow Jones Sustainable Index, CDP, GRI Index, Forbes and others. It has a few awards and complies with the UN Sustainable Development Goals. Lockheed Martin’s reporting is informative and includes highlights, targets, and progress. It has certificates like ISO 14001 and LEED.

Looking just at these facts, Lockheed Martin would deserve a high rating, but the fact that its weapons were used in armed conflicts, and thanks to corruption and fraud scandals, Lockheed Martin is rated C.

Analyst Outlook: Negative

Allegedly Lockheed Martin has mishandled toxins at a Florida facility for decades, causing life-threatening health issues in workers and nearby residents.

Key Points

  • Reduced energy use by 22%, carbon emissions by 39% and water use by 20% since 2010
  • Corruption scandals and fraud – Lockheed Martin paid the Justice Department $4.7 million to settle charges it fraudulently paid a lobbyist with illegally-used taxpayer funds.
  • Lockheed Martin is supplying weapons to Israel. Lockheed Martin also has ongoing business relationships with Egypt and Saudi Arabia which remain undeterred in the face of widescale human rights abuses and brutal military campaigns by the two countries.
  • Two lawsuits against Lockheed Martin for reckless mismanagement of extremely hazardous toxins, including heavy metals, persistent environmental pollutants, and Volatile Organic Compounds [VOC], which are unstable materials that vaporise, lending to their ability to contaminate air, water and soil.
  • These toxins have the capacity to “damage virtually every human body system” and cause latent diseases and cancers in those who inhale, swallow or touch them.
  • One of the lawsuits claims that the company’s “irresponsible and reckless conduct” has caused those who live or work in the area to be at a greater risk for contracting cancer and other “serious debilitating diseases.”
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