Hazardous Chemicals/Materials SUSTAINABILITY MANAGEMENT PLAN GOALS 2021 PROGRESS Annually reduce the amount of Lockheed Martin Priority Chemicals 17 used per unit sold of Lockheed Martin’s top five (by sales) programs through 2025. Annually reduce the amount of Lockheed Martin Priority Chemicals 17 used per dollar of sales revenue across business areas through 2025. In 2021, we enhanced our measurement of prohibited and targeted chemicals and collaborated with business areas and programs to establish Lockheed Martin Priority Chemical baselines. Reducing hazardous chemicals in our products helps Lockheed Martin stay ahead of increasing global chemical regulations and restrictions. Through proactive management of hazardous chemicals in our products and manufacturing processes, we are reducing regulatory risks and protecting our employees, customers and the environment. We are also upholding commitments to our customers and maintaining a competitive position for future opportunities. Lockheed Martin has two internal corporate policies, Restrictions on the Use of Chemical Substances in Products and Processes and Global Product Chemistry Regulations , that guide our chemical stewardship and chemical regulatory compliance efforts. The first policy includes lists of prohibited and targeted chemicals that are updated annually based on risk assessments, current use and regulations. Lockheed Martin Global Supply Chain Operations, Engineering & Technology, program management and Environment, Safety and Health organizations have roles in leading and managing these procedures across the enterprise. We also have three main employee engagement groups that drive the strategy and implementation of efforts to ensure compliance and reduce risk. These working groups include the Chemical Stewardship integrated process team, the Registration, Evaluation, Authorization and Restriction of Chemicals/ Global Product Chemistry Regulations integrated process team and the Design for Sustainability working group. A chemical stewardship focus area continues to be the establishment of a standardized process for collecting chemical data from suppliers on their parts and materials. In 2021, we implemented processes that align with the IPC-1754 Materials and Substances Declaration for Aerospace and Defense Standard , including incorporating the standard into our internal policies and subcontract flow- downs. The IPC-1754 standard includes requirements for aerospace and defense companies to collect chemical data in products and processes from suppliers. This facilitates improved data quality and comprehensiveness. Lockheed Martin is engaging members of our supply chain and collaborating with the International Aerospace Environmental Group on training and resources for this effort. Additionally, we actively look to identify hazardous material replacement projects within our business areas and work with our customers to implement the resulting alternatives within our programs. We recently joined the International Aerospace Environmental Group Replacement Project working group and our engineers are participating in industry efforts to address identifying less hazardous alternatives to replace chromated bond primers and fuel tank coatings. These applications were selected as priorities by International Aerospace Environmental Group member companies due to regulatory restrictions on hexavalent chromium and the need to find alternatives that meet performance requirements. DESIGN FOR SUSTAINABILITY—RESTRICTED CHEMICALS AVOIDANCE TOOL The Design for Sustainability working group, led by employees from Engineering & Technology, collaborates across business areas and functions to develop capabilities that inform product design engineers about restricted chemicals during the product design phase. This effort is being funded as an emerging technology under the model-based engineering research portfolio. In 2021, the working group developed a prototype for a new restricted chemicals avoidance tool that will interface with product design tools. This tool enables engineers to evaluate parts and materials for new and revised designs in order to reduce the use of hazardous chemicals by building early awareness into Lockheed Martin’s product design processes. This approach will help us meet regulatory and customer requirements, reduce risk and costs associated with redesign and increase the sustainability of our products. The restricted chemicals avoidance tool pilot efforts will continue through 2022 with Rotary and Mission Systems Sikorsky. We plan to expand the tool to other business areas following this pilot phase. 17 Lockheed Martin Priority Chemicals are defined as chemical substances that are prohibited from use in Lockheed Martin’s products and processes and/or cannot be used in new applications or programs, and are referenced in our internal corporate policy Restrictions on the Use of Chemical Substances in Products and Processes . Updates to these lists of chemicals are completed annually. A waiver process is included in the procedure for cases where the Lockheed Martin Priority Chemical cannot be substituted. About this Report Our Company Our Sustainability Approach Our Sustainability Priorities Beyond the SMP ESG Performance Index www.lockheedmartin.com 2021 Sustainability Report 22
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