Counterfeit Parts Prevention SUSTAINABILITY MANAGEMENT PLAN GOAL Achieve 100% completion rate of applicable training on the identification and reporting of counterfeit parts by 2025. 2021 PROGRESS In 2021, we achieved more than a 99% completion rate on applicable training. Mission success depends on providing products and services that have trusted reliability, performance and safety. Preventing counterfeit parts from entering Lockheed Martin’s supply chain is one way we uphold this commitment to our customers. The Vice President, Global Supply Chain Operations provides oversight of the counterfeit prevention program. Our corporate policy, Counterfeit Prevention , guides the prevention, detection and mitigation of counterfeit work across our company. Business areas can have additional procedures specific to their unique operations. Additionally, we have a Corporate Counterfeits integrated product team that includes quality assurance representatives from each business area to provide subject matter expertise and guide day-to-day prevention management. Lockheed Martin purchase orders contain terms and conditions on counterfeit mitigation provisions, and we require all acquisitions to begin with original equipment manufacturers and authorized distributors. Please see our Supplier Code of Conduct for a summary of these counterfeit parts expectations. Counterfeit prevention is included in contract purchasing system reviews conducted annually at rotating facilities and during need-based customer quality audits. As the dynamic global landscape evolves and our adversaries continue to insert new counterfeit parts into supply chains, Lockheed Martin is championing a preventative approach. Through our new sustainability management plan goal to achieve a 100% completion rate of applicable training on the identification and reporting of counterfeit parts by 2025, we not only build awareness of the topic, but equip our employees with the tools needed to identify counterfeit parts and take appropriate action if a suspect part is detected. Appropriate actions may include notification, quarantining of parts and investigations. Our customers depend on our mission-critical products and services. Including counterfeit parts prevention in our sustainability management plan gives our customers confidence in our efforts to prevent substandard and unreliable parts from entering our supply chain and helps us retain their business now and into the future. Please visit the Frequently Asked Questions section of our Supplier Wire website for supplier resources on preventing counterfeit parts from entering our supply chain. About this Report Our Company Our Sustainability Approach Our Sustainability Priorities Beyond the SMP ESG Performance Index www.lockheedmartin.com 2021 Sustainability Report 15
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