Artificial Intelligence SUSTAINABILITY MANAGEMENT PLAN GOAL By 2025, 100% of artificial intelligence developers will have been trained in system engineering approaches to artificial intelligence ethical principles. 2021 PROGRESS In 2021, we focused on defining our path and increasing awareness. A core team is working on artificial intelligence security and governance in collaboration with the Advanced Technology Laboratory. We mapped the principles and discussed how to integrate them within corporate policies. We also began building a playbook that contains the tools and information on how to ethically use artificial intelligence at Lockheed Martin. The training will be developed based on this playbook and is scheduled for beta testing in late 2022. Lockheed Martin is committed to driving the use of artificial intelligence in an equitable and transparent way. We are ensuring that our actions have the appropriate defined ethical boundaries at the start to deliver aligned capabilities, meet customer requirements, protect the safety of stakeholders and avoid reputational risk. One of Lockheed Martin’s newest resources is the Lockheed Martin Artificial Intelligence Center. It was created to help centralize the application and scalability of artificial intelligence within the company, which we anticipate to have a heightened impact across all functions. Artificial intelligence drives competitiveness in the marketplace as it can speed the design process as well as the time to market for our products. Artificial intelligence tools are critical to future business success, and the ethical use of artificial intelligence represents a core, defining aspect of how we implement artificial intelligence tools in our organization. Our Code of Ethics and Business Conduct and our internal corporate policy Ethical Development and Use of Artificial Intelligence guide Lockheed Martin’s ethical use of artificial intelligence. We created an Artificial Intelligence Ethics Subcommittee in 2020, under the direction of the Artificial Intelligence Executive Steering Committee, that oversees artificial intelligence design, development, deployment and internal use aligned to our adopted principles for the responsible use of artificial intelligence. These principles are:responsible, equitable, traceable, reliable and governable. Lockheed Martin was one of the first large organizations to wholly adopt these principles, developed by the U.S. Department of Defense, and use them as the foundation for our artificial intelligence program. This reflects Lockheed Martin’s strong history of ethical use of technology, our Code of Ethics and Business Conduct and our Core Values. The Artificial Intelligence Ethics Subcommittee includes representatives from all business areas, the Advanced Technology Laboratory, human resources, communications, legal, ethics and business transformation. It meets monthly and reports quarterly to the Artificial Intelligence Executive Steering Committee. Both Lockheed Martin’s Chief Engineer and the Senior Vice President, Ethics and Enterprise Assurance review performance on a periodic basis and serve as the highest levels of leadership responsible for ethical use of artificial intelligence. Customer engagement is an integral part of our program. Lockheed Martin was invited to an industry roundtable with the Joint Artificial Intelligence Center, which represents the customer in the use of responsible artificial intelligence. We also participated in the Joint Artificial Intelligence Center’s transformational acquisition process. To strengthen our program, we invited the Joint Artificial Intelligence Center to an Artificial Intelligence Ethics Subcommittee meeting and have asked for their third-party review of our policy. Our artificial intelligence sustainability management plan goal is focused on explaining and integrating ethical artificial intelligence across all of Lockheed Martin. It encompasses the full artificial intelligence lifecycle—from use and selection to training and testing to cross-checking and development to ultimate sustainment. As of 2021, we have approximately 850 employees identified as artificial intelligence developers who will be required to take the training. INDUSTRY COLLABORATION Lockheed Martin leadership engaged with the U.S. Department of Defense Advanced Research Projects Agency (DARPA) in early 2021 and eventually launched the first cross-industry ethical artificial intelligence collaboration session in November 2021. The Deputy Director of the Defense Sciences Office of DARPA went through the Institute for Defense Analyses to coordinate and host the meeting with one representative from each of eight defense companies. The main focus areas were testing and verification challenges and defense acquisition business model challenges for continuous data/model updates of deployed artificial intelligence. Lockheed Martin intends to continue this level of transparent collaboration to encourage the ethical use of artificial intelligence to underpin U.S. national security imperatives and international leadership. About this Report Our Company Our Sustainability Approach Our Sustainability Priorities Beyond the SMP ESG Performance Index www.lockheedmartin.com 2021 Sustainability Report 26