Energy Management Emissions Reduction To achieve emissions targets, the Environment, Safety and Health and facilities teams conduct on-and off-site engineering assessments to identify renewable energy and efficiency projects. Findings are used to develop annual tactical plans and an iterative strategic plan with a three-year outlook, against which actual progress is measured and compared. This is called our Go Green gated capital cycle. In 2021, the Environment, Safety and Health and facilities teams completed 64 energy efficiency projects that resulted in annual savings of 40.0 million kilowatt-hours of electricity and 17,200 MMBTU of natural gas, and the avoidance of $3.8 million in utility and maintenance costs. This Go Green gated capital cycle is a centerpiece of our energy reduction and renewable energy strategy whereby projects that meet certain performance and financial thresholds are added to each business area’s overall capital plan. To encourage ideas and actions that reduce emissions, we educate employees about Go Green through internal and external communications, educational webinars and Earth Day and Energy Action Month celebrations. We recognize employee projects that contribute to our reduced impact on the environment through awards programs, including our Environment, Safety and Health Excellence Awards and Facilities Leadership Awards. We also seek external recognition through partner organizations, such as the U.S. Environmental Protection Agency’s ENERGY STAR program and the U.S. Department of Energy’s Better Plants program. RECOGNITION FOR OUR SMART BUILDINGS INITIATIVE Our smart buildings initiative was recognized by peer ENERGY STAR partners as a 2021 Top Project. Smart buildings is a data analytics effort that integrates heating, ventilation and air conditioning equipment, sensors and software to enable predictive maintenance and continuous commissioning. This, in turn, delivers energy use and cost savings, and greater asset reliability and occupant comfort. Our data-driven approach aligns with our broader digital transformation strategy and improves the efficiency of cooling and heating infrastructure, which represents a significant portion of our energy use. Thirteen Lockheed Martin facilities are currently implementing smart buildings at different levels of completion. At the first four facilities to implement smart buildings within our Rotary and Mission Systems business area, over 150 no- and low- cost projects that avoid approximately $250,000 in maintenance and energy costs annually have been discovered. These projects were identified by sensors that provide 3.6 million data analytics transactions daily. RECOGNITION FOR CENTRAL UTILITY PLANT OPTIMIZATION The Lockheed Martin Sikorsky Stratford, CT, facility garnered an internal Facilities Excellence Award along with external awards from the U.S. Department of Energy’s Better Plants Program and Energy + Environmental Leader for improved operational performance of its cogeneration system and its central utility plant. The site installed new steam turbine-driven equipment and electrical infrastructure and can now export electricity back to the grid, thanks to a newly established interconnection agreement with the utility. The project avoids approximately 10.3 million kilowatt- hours, or the equivalent of the electricity needed to power more than 1,200 homes for one year, and yields cost savings of approximately $1.5 million annually, achieving a payback in just over two years. About this Report Our Company Our Sustainability Approach Our Sustainability Priorities Beyond the SMP ESG Performance Index www.lockheedmartin.com 2021 Sustainability Report 17