Supply Chain Sustainability Supply Chain Sustainability Intern Program For the past three years, Lockheed Martin has provided opportunities for students to engage in supply chain sustainability as part of our Supply Chain Sustainability Intern Program. Students in the program are placed on a team with other interns from across the business areas, and are assigned a sustainability challenge area. Each challenge is sponsored by a functional team at Lockheed Martin, such as Environment, Safety and Health or the Corporate Sustainability Office. The students work together to research the challenge and ultimately provide recommended solutions to the Supply Chain Council chair. The program sparks innovative ideas to improve our sustainable supply chain strategy, and provides impactful, real-world experience for students. In 2021, we had 16 interns participate across six challenge areas. For 2022, plans are in the works to implement ideas that originated from the Supply Chain Sustainability Intern Program, including: • Supply Chain Sustainability Case Competition: Modeled after our successful Ethics in Engineering Case Competition, Lockheed Martin will host its first Supply Chain Sustainability Case Competition in 2022. This competition will bring students together each year to address a supply chain sustainability topic and provide solutions. The first competition is planned to focus on small businesses and disruptions, specifically how small businesses can proactively prepare for large disruptions in the future including climate change or pandemics. The judges will include small businesses from Lockheed Martin’s own supply chain. The event is planned for fall 2022 and focuses on eight universities with strong supply chain programs. • Supply Chain Sustainability Forum: As a member of the International Aerospace Environmental Group, in 2021, Lockheed Martin partnered with other participating leaders in the aerospace and defense industry to build a business case for establishing a new working group that focuses on environmental, social and governance engagement. In 2022, the working group plans to launch a Supply Chain Sustainability Forum with an initial focus on climate change. Model-Based Enterprise Supplier Capabilities Assessment In place of our supplier sustainability assessment in 2021, we reached out to approximately 1,700 suppliers to understand their model-based engineering capabilities and drive awareness of Lockheed Martin’s efforts towards digital twin concepts. For each supplier that participated in the survey, we provided a benchmark report on where they stood in comparison to their peers. Engagement with our supply chain on this topic enables suppliers to proactively invest and prepare to align with Lockheed Martin’s future requirements. Utilizing digital twin concepts will ultimately streamline our processes, reduce waste and strengthen operational efficiency. Cybersecurity Small Business Pathfinder Program In 2021, Lockheed Martin launched a new program providing cybersecurity support to an initial selection of small businesses based on specific criteria. This innovative, leading program includes 50 small businesses that will receive third- party expertise for one year in the areas of phishing attempts, training and perimeter vulnerability scanning. In 2022, we plan to launch a second round of services for these suppliers to continue to directly enhance their cybersecurity programs. After this initial cohort, we will look to expand the opportunity to additional suppliers based on risk and current cybersecurity posture. About this Report Our Company Our Sustainability Approach Our Sustainability Priorities Beyond the SMP ESG Performance Index www.lockheedmartin.com 2021 Sustainability Report 47
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