Environment 55 Mitigating Ecological Impact Energy Management Companywide, General Dynamics takes steps in each business unit to mitigate the effects of our day-to-day operations and manufacturing processes. This includes making efforts to reduce our energy consumption. At NASSCO in San Diego, for instance, we work closely with energy providers to run an ongoing Strategic Energy Management (SEM) program to identify and implement energy savings projects. Year Three of the SEM program reduced energy consumption by 1.3 million kWh per year. As we enter the fourth year of the SEM program, the team is investigating 30 additional energy savings projects. In 2020, Bath Iron Works (BIW) entered into a long- term agreement to procure solar energy credits representing 92% of the total electricity consumed at its main yard. The partnership reduces BIW’s carbon footprint while providing financial certainty for developers constructing six new solar projects in the state of Maine. BIW was the first major industrial user in the state to enter into this type of relationship. As a large industrial manufacturer, we will continue to leverage both our scale and our innovative processes to drive energy efficiency and promote the transition to clean sources of energy. Waste and Hazardous Materials Management We minimize the generation of waste by developing new production processes or optimizing existing ones to recover and recycle raw materials and to dispose of unrecyclable waste in a sustainable manner and in accordance with the strictest waste disposal standards. For example, Ordnance and Tactical Systems developed a new method to neutralize chemicals used for etching and anodizing specialized parts at its plant in Springboro, Ohio. By combining the used chemicals from two separate places on its assembly line, the chemicals neutralize each other and significantly decrease the amount of waste generated, as well as the amount of energy consumed. This step also delivers a reduction of water usage of more than 10 million gallons per year. Water and Wastewater Management Sustainable water management means obtaining freshwater and discharging treated wastewater without negatively impacting aquatic ecosystems. For example, the Electric Boat Quonset Point facility captures and processes all of the wastewater generated from its industrial operations. This is more than 100,000 gallons of water per year — the equivalent of more than 6,000 showers. We recycle industrial wastewater by treating it so it can be used again in our manufacturing processes. As a result, wastewater is not released into the sewer system or the sea. We also voluntarily participate in the EPA’s RCRA Corrective Action Program. For over 25 years, we’ve been sampling, remediating and monitoring various facilities, resulting in the remediation of 20,000 tons of soil.