Ethical Business Practices SUSTAINABILITY MANAGEMENT PLAN GOAL Score at or below 35% of the total percentage of employees who observe misconduct within the past 12 months, but neither report it nor take action to address it by 2025. 2021 PROGRESS Survey results indicate 29% of employees who have observed misconduct in the workplace in the prior 12 months did not report or take action to address it. We continue to encourage employees to take action and provide multiple contact methods for guidance and reporting. Lockheed Martin does not tolerate retaliation and this is communicated in training, policies and during contacts to the Ethics Office. A core component of an effective ethics program is ensuring employees feel empowered to raise concerns to their leader or Ethics Officer for guidance or to report potential misconduct. Promptly responding to concerns promotes trust and accountability in the workplace. Lockheed Martin’s sustained reputation for ethical conduct instills confidence in our customers and suppliers, and helps attract and retain high quality employees whose values and integrity align with the company. Our Code of Ethics and Business Conduct and corporate policy Ethics and Business Conduct provide the foundation for Lockheed Martin’s ethics program, reinforcing our Core Values to Do What’s Right, Respect Others and Perform with Excellence. Training and policies support the program, clarifying the expectation for behavior and compliance, while ensuring employees know how to raise concerns. Our Board of Directors provide program oversight, reviewing metrics, initiatives and project status three times each year. In addition, business area Ethics Steering Committees review similar information and provide oversight for their business. Our ethics program is reviewed annually as part of our entity level controls assessment. This assessment includes a comprehensive review of existing policies, procedures and business conduct compliance training to ensure the program is relevant, comprehensive and effectively managed. The biennial 2021 Employee Insights Survey provides insights on employee perceptions of ethics, integrity and trust. Employees who do not take action when observing misconduct primarily believe no action will be taken, and/or they fear potential retaliation from peers or leadership. These concerns are addressed in multiple ways including Integrity Minute videos, business conduct compliance training, ethics awareness training and other leadership and local Ethics Office engagement. Survey data helps gauge the health of our ethics program and provides tracking against the sustainability management plan goals. Employees are asked if they have personally observed misconduct in the workplace in the past twelve months. If they respond yes, they are asked if they reported it, took action or did nothing. The sustainability management plan goal is not to exceed 35% of employees who observe misconduct taking no action. Employees are expected to not only recognize misconduct, but take action to address it through Voicing our Values techniques or reporting. Lockheed Martin has seen a steady decline in observations of misconduct, as well as employees unwilling to take action. ETHICS CONTACTS (PER 1,000 EMPLOYEES) a,b,c 2021 INVESTIGATION FEEDBACK SCORES (SATISFACTION SCORED ON A FIVE POINT SCALE) d a Ethics contact requests for an Ethics Officer to provide guidance or to investigate misconduct. b Ethics guidance information, advice and/or resources to clarify policy and resolve workplace questions on a wide-range of ethics and compliance topics. c Ethics case internal investigation into a good-faith allegation of misconduct. d Investigation feedback score perspectives of reporting party and subjects on the ethics investigative process. About this Report Our Company Our Sustainability Approach Our Sustainability Priorities Beyond the SMP ESG Performance Index www.lockheedmartin.com 2021 Sustainability Report 40