How We Manage

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Our Vice President of Corporate Energy, Environment, Safety & Health chairs the cross-business area Environment, Safety & Health Leadership Council, which develops strategy, initiatives and programs to meet the company’s goals in critical operational areas. The Council’s strategic focus areas include:

  • Voluntary reductions in carbon, energy, waste-to-landfill and water use
  • Workplace safety
  • Regulatory compliance
  • Environmental remediation
  • Operational efficiencies

In 2012, we expanded Council membership to leaders from Global Supply Chain Operations, Engineering, Legal, Enterprise Risk Management and Corporate Sustainability, with the goal of better integrating business practices and promoting collaboration. We also launched a more formal risks and opportunities process to align with our Enterprise Risk Management program.

Environment, Safety & Health Regulatory Compliance
We place a high priority on meeting all applicable environmental, safety and health (ESH) regulations. We closely track, monitor and respond to ESH notices of violation (NOVs) involving our activities. We consider an ESH NOV “significant” when it is reportable to the following:

  • The Federal Awardee Performance and Integrity Information System (FAPIIS), which requires reporting of proceedings in connection with U.S. government contracts that either carry civil fines of $5,000 or more and a finding of fault, or that result in a criminal conviction.
  • The U.S. Securities and Exchange Commission (SEC), which requires reporting of proceedings under environmental law that involve fines of $100,000 or more.

Key elements of our environment, safety and health regulatory compliance program include:

  • Assessing corporate-wide trends for violations, including evaluating root causes
  • Evaluating incidents to identify corrective actions
  • Providing in-house training and webinars on top compliance focus areas
  • Performing peer assessments by internal experts to identify opportunities for improvement
  • Conducting rigorous annual audits Our ESH audit program follows a risk-based yearly audit plan approved by our Board of Directors. The plan tests for conformance with our ESH management system and internal policies and procedures. Findings are tracked to closure and reported to senior management, including our Chief Financial Officer.

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Wildlife Habitat Protection

At our site in Helendale, Ca., we have an active habitat conservation program in place for the threatened desert tortoise. The facility borders on a critical tortoise habitat, and we submit annual surveys recording any adverse tortoise incidents to the U.S. Fish and Wildlife service. We also provide annual training to all site employees and to frequent visitors.

The desert tortoise population has flourished next to our secured and fenced nine square mile facility. In a 2012 survey, biologists found the population thriving like nowhere else in the Mojave Desert.

There are designated endangered or threatened species at approximately 40 of our U.S. sites. We also have approximately 40 sites that are adjacent to designated wetlands. In each case, we have filed the required permits and follow the appropriate mitigation and monitoring plans.

Business Case

Pursuing environmental compliance brings clear business as well as good citizenship benefits. By reducing resource use, operating more efficiently and making smart utility decisions, we have cut overhead costs. Simply by using less electricity, natural gas and water, we reduced consumption costs by $20.6 million in 2012 compared to 2007, which was reinvested back into the business.

We are poised to do much more. As a global manufacturer and service provider of products with lifespans of decades, responsible for 120,000 employees and 77 million square feet of facility space, we see many opportunities for sustainable solutions. We're proud of our progress in energy, water, waste, habitat protection and remediation, and the new multi-year Go Green 2020 goals we've established.

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Aligning with Customer Sustainability Goals

Our Go Green 2020 goals closely mirror the environmental footprint reduction targets of our largest customer, the U.S. Department of Defense.


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U.S. Environmental Protection Agency (EPA) Scorecard

We monitor how our performance compares to the EPA’s sustainability goals.


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