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AGENDA

Introduction
Reporting

Framework

Observations
Suggested

Improvements

Considerations
Conclusion
References

Introduction
Core Businesses

Revenue

Aeronautics

> $46 billion in revenue

Information systems & global

solutions

78% of the total sales in 2011

came from arms sales

Missile and fire control

Mission systems and training

Space systems

Largest client - U.S.

Department of Defense
(~85%)

Foreign and commercial

sales (~15%)

Introduction Contd
Sustainability in 2012

Sustainability Report

2nd Sustainability Reporting

Responsible growth

Established an Office of
Corporate

Protecting environment

Strengthening communities

Formed council of executive

leaders

Global Reporting Initiative

(GRI)

Launched Go Green 2020

initiative

Goals: energy conservation,

packaging, volunteerism and
inclusive workplace

Reporting Framework
GRI 4
WHY?

How
Leading global
standard
Periodically revised

Comparison
between G4
standard and
Lockheed Martin
performance

Providing guidance
in reporting on
material issues
Lockheed Martin
uses GRI 3.1

Comparing the CSR

report of Lockheed
Martin with that of
Northrop Grumman

Reporting Framework-Assessment
VS

Economic

Environmental

Social

Achieved $54 million in energy savings in 2012

No fully disclosure (NG WIN)
Insufficient data measurement techniques
31% drop in carbon emissions
Received a significant environmental Notice of Violation (NOV) in 2011(NOW
WIN)
Numbers are collected form limited counties
Not enough indicators
No exact weight or volume of chemical materials
Lacks external audit (NG WIN)
Target Zero program &Effective Leadership of Inclusive Teams (ELOIT)
learning labs
No diverse workforce: Female-26%;US domestic-90% (NG WIN)
No information on new employees hired and employee turnover
Donations, scholarships, voluntary activities, and programs
Fail to mention the audit process and implementation mechanism

Observations
Strengths
Weaknesses
Stakeholders
Best

Assessment

Practices

Worst

Practices

Reflections
Improvements

Observations - Strengths
Inputs
Clear

from various stakeholders

performance indicators and results

Clearly
Data

indicated the reporting framework

availability and the use of the data

Recognize

and honor employees

Long-term focused

Observations - Weaknesses
Inadequate

comparisons with similar businesses

Unrecognized

Greenwashing insufficient

negatives
Lack

input and feedback from environmental

advocates

Observations - Stakeholders Assessment

Communities

Various community relation programs

Emphasize the importance of work safety and wellness and the value of workplace
diversity and inclusion

Customer

Forge technological advances into the energy market and increasing the efficiency of
solutions

Enrich customer trust and reduced costs for the U.S. government

Employees

Safety and wellness: Target Zero, no exact amount of injured emlpoyees

Executives over 50 : 80%

2400 employees were forced to have a holiday without salary on Oct. 8th

Environmental

Not mentioned

Advocates

Observations - Best Practices

Emphasize

on applying and implementing best

practices to improve sustainability and workplace
ethics

Share

best practices through trade associations,

events and internal website

Observations - Worst Practices

Reduction

of indirect energy consumption and

reductions achieved.

Location

and size of land owned, leased or managed

Descriptions

of significant impacts of activities,

products, and services on biodiversity

Percentage

of operations with implemented local

community engagement, impact assessment and
development programs.

Suggested Improvements

Compare with other companies & Eternal standards

Balance the report with positives and negatives

Inform stakeholders of the specific material issues

External assurance-Third party verification

Conclusion

It represents a step forward in recognizing that environment and human rights

have a key role to play in designing a transformative sustainable development
agenda post-2013.

It goes beyond the goal of extreme efficiency to provide a more holistic view
of the root causes of environmental problems.

We call for a more ambitious and bold agenda that includes profound reforms
in key structural areas such as the model of production and consumption, the
global financial architecture, global governance and monitoring framework to
align with human rights, and particularly with women's rights commitments

References

2012 Sustainability Report. (2012). Retrieved October 3, 2012, from Lockheed Martin:
http://www.lockheedmartin.com/us/2012-sustainability-report.html

The Value of Performance - Corporate Responsibility Report 2012. (2012). Retrieved October 5, 2013,
from Northrop Grumman:
http://crreport.northropgrumman.com/PDFs/2012CorporateResponsibilityReport.pdf

G4 Sustainability Reporting Guidelines. (2013). Retrieved October 2 2013, from Global Reporting
Initiative: https://www.globalreporting.org/

Lockheed Martin Lobbying Spending. (2013, July 29). Retrieved October 8, 2013, from Open Secrets:
http://www.opensecrets.org/lobby/clientsum.php?id=D000000104&year=2010

Bock, P. J. (2013, May 10). 10 Mistakes to Avoid in CSR Reporting. Retrieved October 9, 2013, from
Everblue: http://www.everblue.edu/blog/10-mistakes-avoid-csr-reporting

(n.d.). The Science of Citizenship Sustainability 2012. Lockheed Martin.

The SIPRI Top 100 arms-producing and military services companies in the world excluding China, 2011.
(n.d.). Retrieved October 9, 2013, from Sipri:
http://www.sipri.org/research/armaments/production/Top100

Value of sustainability reporting. (n.d.). Retrieved from Ernst & Young:

http://www.ey.com/Publication/vwLUAssets/ACM_BC/$FILE/13041061668_ACM_BC_Corporate_Center.pdf