Leadership Perspective

2014 Leadership Perspective

Lockheed Martin’s sustainability mission is to foster innovation, integrity and security to protect the environment, strengthen communities and propel responsible growth. Our commitment to sustainability influences our operations and informs our decision-making at every stage of our business lifecycle.

This 2014 Sustainability Report represents the fourth annual summary of our major accomplishments and opportunities tied to the larger environmental, social and governance issues that shaped our performance over the past year.

We made progress raising our operational performance levels that resulted in a smaller environmental footprint, more effective supplier partnerships and enhanced ethical conduct controls. Our leading team of scientists, engineers and other experts continued to push the boundaries of innovation and discovery. We also renamed the Sustainability Technologies line of business within our Mission Systems and Training area to strengthen alignment of its portfolio.

In 2014, we remained disciplined with our sustainability efforts in six high-impact areas. We determined how current environmental, social and governance concerns would affect and shape our strategic plans. We implemented our Lockheed Martin Sustainability Management Plan, which allowed our leadership to focus on our comprehensive set of commitments. Here are some highlights from 2014:

  1. Governance: In our ongoing efforts to preserve our culture of integrity and combat corruption, we offered our first digital, interactive and mobile version of the Lockheed Martin Code of Ethics and Business Conduct, Setting the Standard. This reference tool clearly outlines our corporate values and expectations - and makes them readily available to our employees, customers and suppliers.
  2. Information Security: We continued to strengthen our cyber security and information technology (IT) capabilities, expanding our efforts in the growing fields of homeland security, commercial aerospace and healthcare IT. Our Cyber Incident Response Assistance accreditation by the National Security Agency’s Information Assurance Directorate makes us one of the few federally-recognized companies certified to help organizations respond to their network cyber-attacks.
  3. Supplier Sustainability: We trained 14,000 of our suppliers on counterfeit parts, making them aware of the problem and helping alleviate quality and safety risks in the supply chain.
  4. Product Performance: We continued to invest in our energy portfolio and strategically partnered in several segments of the market, including energy generation, usage, storage and security. The commercial and public sectors sought our new energy and sustainability technologies like waste-to-energy and biomass plants, tidal power generation, and ocean thermal energy conversion. Also, we worked with a broad range of utility customers to seamlessly integrate their power, IT and communications networks as new sources of energy generation came on line.
  5. Resource Efficiency: We voluntarily reduced our carbon emissions, energy use, water use and landfill waste from a 2010 baseline; actively shrinking our environmental footprint and decreasing our operating costs.
  6. Talent Competitiveness: We exceeded employee attrition targets, while fostering a culture of diversity and inclusion that celebrates our different backgrounds, varied experiences and unique points of view. To help address the anticipated shortage of skilled workers for our industry in the coming years, we teamed with several companies and non-profit organizations to promote science, technology, engineering and math (STEM) to young people - and inspired students to pursue STEM careers.

These efforts helped us earn distinction as a new addition to the Dow Jones Sustainability World Index and, for the fourth consecutive year, a position on the CDP S&P 500 Climate Disclosure Leadership and Clean Performance Leadership Indices. This recognition helps confirm that our business strategy, which incorporates sustainability into our day-to-day operations, is not only responsible but also relevant to investors.

This report highlights some of the ways that we supported our customers, stockholders, employees, communities and the environment in 2014 - and how we are shaping the future by engineering a better tomorrow.    

Marillyn A. Hewson
Chairman, President and Chief Executive Officer
Lockheed Martin Corporation