Workplace Safety SUSTAINABILITY MANAGEMENT PLAN GOALS Reduce the number of days away from work due to occupational injury or illness through 2025. 20 2021 PROGRESS We did not meet this goal in 2021. This goal is based on a three-year rolling average, which included data from years prior to the pandemic. An analysis showed that we would have been successful in achieving our target if occupational COVID-19 related days away from work were removed from the 2021 calculation. 21 Establish a risk-based approach to serious incident and fatality prevention programs by 2025. In 2021, we finalized our new serious incidents or fatalities management process, integrated it within our incident management system tool and conducted initial testing. Implementation across the company is planned for early 2022. Our safety and health program, called Target Zero, goes beyond compliance to ensure safe work conditions, promote workforce resiliency and enhance business value. We actively implement programs to reduce risk, prevent injuries and empower our employees in creating a safer work environment. This helps us protect the foundation of our business and our greatest asset: our people. Lockheed Martin’s corporate policy Environment, Safety and Health provides the overarching guidance for our Target Zero program. It is supported by a comprehensive set of procedures on different safety and health topics, including the framework for our Environment, Safety and Health Management System. Performance on our safety metrics and initiatives are reported to the Vice President, Environment, Safety and Health on a monthly basis, as well as to the Board of Directors quarterly. Additionally, we have an internal performance dashboard that is updated monthly and available to all employees. Lockheed Martin’s enterprise Environment, Safety and Health Management System is certified to ISO 45001, with 25 sites certified to ISO 45001 in 2021. 19 Additionally, five Lockheed Martin facilities are participants in the U.S. Occupational Safety and Health Administration’s Voluntary Protection Program. We are actively involved with organizations such as the National Association of EHS&S Management, The National Safety Council, The Conference Board and industry working groups to share safety best practices and lessons learned. One example is our participation in the Z16 Standards Committee with more than 20 other organizations. The Z16 standard provides a broadened scope of metrics to help organizations better understand and improve safety and health performance, as well as the impact safety and health has on business success. Measuring workplace safety performance extends beyond employee injury and illness prevention to include topics such as fleet, property, reputation and resilience. PARTICIPATORY ERGONOMICS PROGRAM Our Participatory Ergonomics program allows employees from different areas to become part of an ergonomics team in charge of conducting assessments and implementing solutions in manufacturing areas identified as high and moderate risk for ergonomic stressors. Since 2011, eight teams have been established. In 2020, two Participatory Ergonomics teams implemented comprehensive and sustainable Participatory Ergonomics programs, completing approximately three dozen improvement projects that represented an estimated cost avoidance of almost $2.6 million. In 2021, a program enhancement train-the- trainer pilot initiative was implemented in our Missiles and Fire Control business area, which will enable and enhance ergonomic skills. 19 While the enterprise Environment, Safety and Health Management System is certified, it does not mean that all of our facilities are automatically certified. Individual facilities apply for inclusion in the certification separately. 20 Lost days severity rate is calculated as a function of the number of days away from work due to an injury or illness per 100 employees. 21 The 2021 severity rate without occupational COVID illnesses was 4.32, which was within goal. The 2021 severity rate including occupational COVID illness was 5.81. No other identified trends impacted our 2021 performance. The 2020 severity rate without occupational COVID illnesses was 4.26, which was within goal. The 2020 severity rate including occupational COVID illness was 5.06. No other identified trends impacted our 2020 performance. About this Report Our Company Our Sustainability Approach Our Sustainability Priorities Beyond the SMP ESG Performance Index www.lockheedmartin.com 2021 Sustainability Report 37