Lockheed Martin 2012

Sustainability Report Analysis

Group Members: Ankita Mayekar

Corina bruni
Course Code:
Due Date:

BUSI 5015 FA 2014

11 November,2014

Table of Contents
Executive Summary.......................................................................................................... 2
Introduction.................................................................................................................... 3
Overview of Lockheed Martin.................................................................................. 3
Overview of Sustainability Report........................................................................... 4
Reporting Framework....................................................................................................... 5
Observations.................................................................................................................. 8
Strengths.................................................................................................................... 8
Weaknesses............................................................................................................... 10
Stakeholders Assessment.............................................................................................. 11
Communities...................................................................................................... 11
Customer............................................................................................................ 11
Employees.......................................................................................................... 12
Environmental Advocates................................................................................... 12
Best Practices............................................................................................................ 12
Worst Practices.......................................................................................................... 13
Suggested Improvements................................................................................................. 14
Future Considerations..................................................................................................... 15
Conclusion................................................................................................................... 18
Bibliography................................................................................................................ 19

Executive Summary
The purpose of this report is to critique, systematically analyze and examine the implications of
the sustainability report of Lockheed Martin for the year 2012. Research for this report includes a
review of the current sustainability report on the website of Lockheed Martin and videos for
Lockheed Martin corporate social responsibility and its critique.
The major findings indicate that while there is a need for more information on key areas of the
report; the integrity and quality cannot be verified by an external audit panel; Lockheed Martin
has performed considerable developments for the community and environment as a part of its
citizenship and sustainable efforts.
While it is clear that key elements per the GRI Index need to be made accessible and the overall
quality of the report must be improved eliminating redundant information, this report
recommends that Lockheed Martin must continue to develop and implement its community and
environmental development approach if it wishes to continue providing quality sustainable
efforts per industry standard.

Introduction
Peter Drucker once said, corporate social responsibility is a dangerous distortion of business
principles.
Corporates have an enduring capacity operating on basis of civic virtue, serving to limit legal
constraints on virtues with the corresponding risk to operate with impunity and without
accountability. From a legal purview, competitive pressures and market demand and supply
become the key drivers of corporate behavior.
The efficiency and legitimacy of CSR is a dichotomy. However, with dichotomy one parameter
tends to define the other. Legitimacy becomes discursively constructive by the parameters of
efficiency. Much of the CSR and sustainability is win-win situation. Lockheed Martin does well
for the society, for the environment provided they make money from it or save money from it.
Sustainability seems to be suddenly transformed into eco efficiency.

Overview of Lockheed Martin

Lockheed Martin, an aerospace, defense, security and advanced technology company, is one of
the world's largest defense contractors to provide aeronautics, information systems & global
solutions, missile and fire control, mission systems and training, and space systems to its
customers and clients. Majority of Lockheed Martins revenue came from military arms sales at
78% of the total sales in 20111, with the U.S. Department of Defense being the largest customer.
Other than military involvement, Lockheed Martin is active in political activities spending $15
million in lobbying in 20122. Although Lockheed Martin is heavily involved in supporting
military and political activities and research and development, the company has not forgotten
about corporate social responsibilities. In 2011, Lockheed Martin developed its first
1 The SIPRI Top 100 arms-producing and military services companies in the world
excluding China, 2011. (n.d.). Retrieved October 9, 2013, from Sipri:
http://www.sipri.org/research/armaments/production/Top100
2 Lockheed Martin Lobbying Spending. (2013, July 29). Retrieved October 8, 2013,
from Open Secrets: http://www.opensecrets.org/lobby/clientsum.php?
id=D000000104&year=2010
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sustainability report to illustrate how the company is managing environmental, social and
governance performance. In the following year, Lockheed Martin took a leap forward and
brought ethics, business conduct and corporate sustainability to a new level. Lockheed Martin
established an Office of Corporate to formalize the companys commitment to a company-wide
sustainability effort and, in the same year, a council of executive leaders was formed to govern
and guide the companys sustainability policies and goals. Lockheed Martin also launched the
Go Green 2020 initiative, a set of ambitious environmental goals aiming beyond regulatory
requirements, which also mirrors the environmental footprint reduction targets of the U.S.
Department of Defense3.

Overview of Sustainability Report

The 2012 sustainability report is the second sustainability report Lockheed Martin published to
the public with the purpose to renew commitment to responsible growth, protecting environment,
strengthening communities. The report also communicates the sustainability goals and objectives
Lockheed Martin met and exceeded over the year of 2012. The CSR report also emphasizes that
Lockheed Martin is integrating sustainability into the corporate culture to ensure from top to
bottom, the company is marching towards the same direction. The report is broken down into 3
distinctive categories: responsible growth, protecting environment and strengthening
communities. Lockheed Martins sustainability report follows the globally recognized reporting
framework, the Global Reporting Initiative, in sustainability reporting efforts. The sustainability
report highlights the companys goals to achieve innovation for energy conversation and smarter
energy management, to reduce energy consumption and wasteful packaging, to encourage
employee volunteerism and inclusive workplace.
The group selected Lockheed Martin as a research topic because of the nature of the companys
core businesses and the companys involvement and contributions towards activities that are
usually seen as unethical such as warfare, violence and manufacturing by-products. The group is
interested in exploring how a company like Lockheed Martin would handle sustainability,
environmental and social responsibility concerns. This report starts off by assessing Lockheed
Martins 2012 sustainability report against the selected reporting framework. The second section
3 Lockheed Martin. (2012). The Science of Citizenship Sustainability 2012. Lockheed
Martin.
4

of the report provides detailed observations of the sustainability report including strengths and
weaknesses of the sustainability report, and the assessments of the quality of the report from
different stakeholder perspectives. Based on the observations, the third section of this report
outlines the recommended improvements for next years sustainability report.

Reporting Framework
The framework we chose to evaluate the CSR report of Lockheed Martin is the latest Global
Reporting Initiative (GRI 4), released in May 2013, and now the leading global standard for
sustainability report development. GRI framework is a collection of reporting guidance
documents, all of which were developed through global, multi-stakeholder consultative
processes, designed to assist companies in preparing sustainability reports and environmental,
social and corporate governance (ESG) disclosures4. Besides, these guidance documents are not
only periodically revised to ensure that they continue to meet the needs of 21st-century business
and society, but also take into account of regions and countries. Moreover, GRI has become a
global language for sustainability standard. In the 2013 Boston College Center for Corporate
Citizenship and Ernst & Young survey on sustainability reporting, more than two-thirds of
respondents indicated that their organizations employ the GRI framework in the preparation of
their CSR reports5. The key benefit of using the GRI framework, in addition to standardization of
reports, is providing guidance in reporting on material issues, including economic, environmental
and social aspects.
The 2012 sustainability report is the first time that Lockheed Martin map its report against a
reporting frame work, using GRI 3.1, and now the fourth generation of Sustainability Reporting
came out in May 2013. To fully assess the quality of Lockheed Martins sustainability report,
comparison between G4 standard and Lockheed Martin performance are given and deficiency in
4 Value of sustainability reporting. (n.d.). Retrieved from Ernst & Young:
http://www.ey.com/Publication/vwLUAssets/ACM_BC/$FILE/13041061668_ACM_BC_Corporate_Center.pdf
5 Value of sustainability reporting. (n.d.). Retrieved from Ernst & Young:
http://www.ey.com/Publication/vwLUAssets/ACM_BC/$FILE/13041061668_ACM_BC_Corporate_Center.pdf
5

its application of GRI standard is also illustrated in the report. Specifically, in the analysis of how
Lockheed Martin behaved in accordance with the GRI index, we focus on the three material
issues, including, economic, environmental and social impacts of Lockheed Martin performance.
Moreover, by comparing the CSR report of Lockheed Martin with that of Northrop Grumman,
which is also a leading company in aerospace and defense technology industry, both strengths
and weakness in Lockheed Martin CSR report are demonstrated.
For the three essential aspects of the Lockheed Martin sustainability report, economic growth is
always the priority for the corporation to achieve sustainable development. According to the
sustainability report, collaboration between costumers and Lockheed Martin improved through
its Utility Energy Efficiency programs that achieved $54 million in energy savings in 20126.
However, referring to the requirements of GRI disclosure, Lockheed Martin did not fully
disclose its direct economic value generated and distributed, financial implications, and other
indirect risks and opportunities for the organization's activities. While following the same
guidance, Northrop Grumman fully included those parts in the 2012 corporate responsibility
report and indicated external initiatives the company prescribed, which makes the content more
reliable and measurable. Furthermore, despite Lockheed Martin reports its achievements in
improving its economic efficiency in the CSR report, data measurement techniques and the bases
of calculations are lacking and insufficient. Without clear explanations of how those data are
collected and measured, the economic value brought by Lockheed Martin is questionable.
The second material aspect of Lockheed Martins CSR report is environmental category.
Through the comparison, it can be easily seen that Lockheed Martin has reached significant
improvement in 2012. For instance, Lockheed Martin has achieved a 31% drop in carbon
emissions from their operations in 2012 as a result of Go Green 2020 program launched in 2007.
Besides, comparing to environmental performance of Lockheed Martin in 2011, when the
company received a significant environmental Notice of Violation (NOV), another significant
improvement of Lockheed Martin is that the company didnt receive such notice in 20127.
6 2012 Sustainability Report. (2012). Retrieved October 3, 2012, from Lockheed
Martin: http://www.lockheedmartin.com/us/2012-sustainability-report.html
7 2012 Sustainability Report. (2012). Retrieved October 3, 2012, from Lockheed
Martin: http://www.lockheedmartin.com/us/2012-sustainability-report.html
6

However, even though the data in Lockheed Martin 2012 sustainability report showed dramatic
decrease in toxic water discharge, landfill waste producing and carbon emission, those numbers
are not typical because they were only collected from limited counties, including The U.S,
Canada and UK etc. Since Lockheed Martin is a global enterprise with branches all over the
worlds, those restricted data are inadequate to ensure a well-being of whole company. Moreover,
under environmental category in GRI, more than ten indicators are required in CSR report,
including materials, energy, water, biodiversity, emissions, effluents and waste, products and
services etc. Nevertheless, Lockheed Martins report seems quite biased because it only focused
on energy, water and emissions, while other important indicators like material and transport
aspects are lacking. Furthermore, the sustainability report of Lockheed Martin did not provide
the exact weight or volume of chemical materials that are used to produce mechanical products.
The environment impacts of Lockheed Martin transporting their products, goods and materials
were also absent in the report. Another drawback of Lockheed Martin CSR report is that the data
provided lacks external audit to ensure reliability, while the data of greenhouse gas collected by
its competitor, Northrop Grumman, are reviewed through third-party verification by Lloyds
Register Group (LRQA) for 2010 and 2011. At the same time, we cannot find the total
environmental protection expenditures and investments by the GRI categories.
Under the last category of social performance in GRI, there are four sub-categories namely labor
practice and decent work, human rights, society and product responsibilities. In accordance with
GRI standard, Lockheed Martin included Safety and wellness, diversity and inclusion,
community relations and supplier diversity in its sustainability report to state its achievement of
social citizenship. For instance, a Target Zero program was scheduled by Lockheed Martin to
ensure the workplace safety and the health of the employees. Meanwhile, Lockheed Martin has
launched the Effective Leadership of Inclusive Teams (ELOIT) learning labs for expanding
diversity and inclusion development efforts for senior executives8. Nevertheless, even though
Lockheed Martin announced developing a diverse workforce, the charts in its sustainability
report identified that only 26% of the employees were women and nearly 90% of employees
were US domestic, while the percentage of female workforce in Northrop Grumman is 28%. At
the same time, there is no information on the number of new employees hired and employee
8 2012 Sustainability Report. (2012). Retrieved October 3, 2012, from Lockheed
Martin: http://www.lockheedmartin.com/us/2012-sustainability-report.html
7

turnover categorized by age group, gender and region. Besides, different benefits between fulltime and temporary employees are not accessible in the report. Especially for human rights,
clarifications of agreements, contracts or human rights policies or procedures were missed in the
sustainability report. Regarding to community involvement, Lockheed Martin contributed back
to the communities through donations, scholarships, voluntary activities, and programs such as
Science, Technology, Engineering and Math (STEM) activities to advance students interest in
engineering and Employee Disaster Relief Fund to assist employees in the case of certain
disasters9. The problem is that The CSR fails to mention the audit process and implementation
mechanism.

Observations
This section outlines in detail the observations the group made based on the analysis of
Lockheed Martins 2012 sustainability report. The strengths and weaknesses sections below
outline the positives and negatives of the sustainability reports. It is followed by the assessment
of the quality of the sustainability report from different stakeholder point of views. The best
practices section highlights how Lockheed Martin applied and shared their best practices. On the
other hand, the worst practice section lists the reporting elements that are missing from the
sustainability report per the GRI index.

Strengths
Lockheed Martins 2012 sustainability report has clearly listed out all its stakeholders from
suppliers to investors to regulators to customers, who have provided inputs to help Lockheed
Martin prioritizing business issues, providing learning opportunities and developing a culture of
trust and transparency. This comprehensive list of stakeholders helps readers to understand the
sources and degree of input and feedback that have been contributed to completing the CSR
report, which gives readers and other stakeholders confidence in the quality and integrity of the
CSR report. By engaging a broad range of stakeholders to create and design the sustainability
program, Lockheed Martin is emphasizing the company values each stakeholder and respect
each stakeholders opinions and contributions.
9 2012 Sustainability Report. (2012). Retrieved October 3, 2012, from Lockheed
Martin: http://www.lockheedmartin.com/us/2012-sustainability-report.html
8

Another great feature of Lockheed Martins 2012 sustainability report is the performance
indicators section, which serves as a summary of the entire report. This section clearly captures
and defines the companys sustainability strategy goals and objectives in each of the 3 major
categories along with the challenges identified. These goals are specific, relevant and
measurable, and help to explain to readers what the companys sustainability strategy focus is.
Also, this section tracks the performance results in 2012 to give readers a high level overview of
what the company has achieved in that given year in terms of sustainability and how close the
company has performed measured against each objective. This section has shown readers that the
company is not shy from sharing its performance indicators to the public and also to promote
high degree of transparency.
Meanwhile, the 2012 sustainability report explicitly indicated the reporting framework that
Lockheed Martin adapted to create the CSR report. This offers readers and stakeholders a great
level of assertiveness and integrity of the report. The application of the Global Reporting
Initiative (GRI) also provides this CSR report a common measure of performance which is
lacking in many other CSR reports. In the GRI Index section of the CSR report, Lockheed
Martin has provided a list of the GRI framework indicators along with the status for each
indicator and the source of information each indicator status is based on. This offers traceability
for readers who can easily trace back to the source of information the GRI results are measured
with.
Another thing Lockheed Martin has done exceptionally well in the 2012 sustainability report is
the availability of data and the use of the data to support the report. Lockheed Martin uses 2007
data as a baseline to develop the performance benchmark for comparison purposes such as
comparing 2012 carbon emissions, water and waste reductions to the 2007 level. This gives
readers a clear illustration of the magnitude of changes in sustainability performance since 2007.
In addition, the CSR report provides a good amount of statistics from the past 5 years such as
philanthropic contributions from year 2008 to 2012, and work safety and wellness data from
2008 to 2012. By including sufficient data in the CSR report, readers will be more convinced
with the reports findings and they are able to reference current years performance results to
previous years. Other than that, the inclusions of business cases in the CSR report have helped
strengthen the companys reported results.
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In the CSR report, Lockheed Martin displays themselves as a long-term focused company.
Although the CSR report does not detail the actual long-term waste reduction plan, which is
covered in a separate report; however, it emphasizes Lockheed Martin has a long-term multi-year
Go Green 2020 plan that aligns with the environmental footprint reduction targets of the U.S.
Department of Defense. It is important and critical for a CSR report to show its stakeholders the
company is committing to a long-term plan because this is equivalent to telling stakeholders the
companys investment in sustainability is for a long-term cause. Companies with a long-term
vision give stakeholders a sense of maturity and sophistication in their businesses, which will
help companies to build trust and reputation.
Lockheed Martins 2012 sustainability report not only focusing on the companys sustainability
strategies, activities and outcomes in 2012; however, the company took the opportunity in the
CSR report to recognize and honor the fallen and surviving Lockheed Martin employees who
have been victims of various terror attacks. This is a great and caring act that Lockheed Martin
carried out in the CSR report at a corporate level to show that the company cares and values each
of its employees at the individual level.

Weaknesses
Although Lockheed Martins 2012 sustainability report offers good volume of company data as
well as a good visual of comparing data collected in previous years, the report is lacking results
comparison to other companies with similar business function and sustainability standards. By
comparing the performance results to the internal benchmark, the CSR report gives readers a
certain degree of clarity on how Lockheed Martin performances and improves throughout the
past few years; however, the results might seem to be biased if no data is collected or no
comparison is done at the industry level. Lockheed Martin might have excelled and performed
outstandingly in sustainability in the last few years by comparing to the companys internal data,
but the report does not give enough information to readers to understand if the company has done
enough to meet industry standards, or if the company is even comparable with other similar
companies in the same business. For instance, the CSR report shows that Lockheed Martin has
significant improvements in sustainability throughout the years, but by comparing the company
to the industry level, Lockheed Martin might be trailing behind, which the report has no evidence
to explain.
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In the 2012 sustainability report, Lockheed Martin has reported their 2012 achievements and
improvements compared to previous years performance. The report also provides detailed data
to support their 2012 performance results, which focuses strictly on the success of the companys
sustainability initiatives and promotes only the positive results. Many of the results Lockheed
Martin reported are positives rather than negatives. The report is biased without balancing the
positives with sufficient negatives. This type of reporting approach is a form of greenwashing10,
which might bring negative impacts to the reporting company. Greenwashing the CSR report can
reduce transparency to the companys actual performance results, which leads to readers and
stakeholders questioning the integrity of the reports and results in trust and reputation damages.
To help developing the 2012 sustainability report, Lockheed Martin has engaged various
stakeholders that the sustainability initiative is impacting. Lockheed Martin received feedback
from suppliers, customers, regulators, investors and communities, and translates them into
measurable objectives. However, the CSR report has insufficient evidence to proof that the
company has seek input and feedback from environmental advocates who play an important role
in influencing political processes impacting environmental decisions and act as a watchdog to
monitor corporate environmental activities.

Stakeholders Assessment
Communities

Lockheed Martin builds a strong case in supporting and strengthening communities in the 2012
sustainability report. The report highlights the company has launched various community
relation programs from Lockheed Martin Employee Disaster Relief Fund (LMEDRF) to STEM
initiative to assist veterans to transit to civilian life. The report also emphasizes the importance of
work safety and wellness and the value of workplace diversity and inclusion. This report gives
communities a full glance of what Lockheed Martin has done to contribute back to the society.

10 Bock, P. J. (2013, May 10). 10 Mistakes to Avoid in CSR Reporting. Retrieved

October 9, 2013, from Everblue: http://www.everblue.edu/blog/10-mistakes-avoidcsr-reporting
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Customer

With 85% of the companys business coming from the U.S. Government, Lockheed Martin has
committed itself to meet the increasing need for sustainability of its customer by forging
technological advances into the energy market and increasing the efficiency of solutions. In the
2012 sustainability report, programs including Utility Energy Efficiency programs and Go green
2020 initiative indicated Lockheed Martins accomplishments in energy saving. Moreover, by
increasing in providing best solutions and addressing sustainability in the supply chain, for
instance, the Preferred Supplier Program (PSP), Lockheed Martin enriched customer trust and
reduced costs for the U.S. government. Overall, the sustainability report of Lockheed Martin
fully disclosed its commitment to customers.
Employees

For all the employees, Lockheed Martin tried to provide safety and wellness in 2012 where big
reductions can be seen from the reports of recordable rate, day away case rate and severity rate
compared to the previous years. The Target Zero program involved employees by training
session and involved employees managers by following one-over-one injured employee process.
The Lockheed Martin injury reduction process is a cycle that can offer feedback and
improvements in the long term. But the truth is that it did not give the exact amount of injured
employees these years instead of percentages. As Lockheed Martin announced, there were
learning labs for Vice Presidents and diversity leadership forums while it was also showed
almost 80% of the executives were over 50 and only 26% of the employees were female11. On
October 8, nearly 2400 employees were forced to have a holiday without salary caused by U.S.
government which means that there were no regulations about employees work guarantee.
Environmental Advocates

The sustainability report does not mention whether or not any environmental advocates or an
external audit panel such as the one commissioned by Northrop Grumman for its sustainability
report to provide reliable and accurate audit of the claims substantiated by Lockheed Martins
sustainability report.

11 2012 Sustainability Report. (2012). Retrieved October 3, 2012, from Lockheed

Martin: http://www.lockheedmartin.com/us/2012-sustainability-report.html
12

Best Practices
Throughout the 2012 sustainability report, Lockheed Martin places emphasis on best practice
applications such as applying industry best practices to the federal governments $500 billion per
year spending to further promote sustainable procurement practices in the global supply chain, or
implementing governance best practices to introduce processes and programs that assess and
build capacity for robust ethics programs in our supply chain and support international business
development.
Discussing, applying and implementing best practices into the business processes are essential to
Lockheed Martins success in sustainability; however, the company also makes sure the best
practices are shared among the industry and within the company. Lockheed Martin engages with
the industry through trade associations to share strategy and best practices. Also, the company
holds regular events for different workplace locations to share best practices and insights on how
to identify risks and opportunities. In addition, Lockheed Martin has setup an internal
ergonomics website offers best practices, activities and industry resources, as well as a
networking forum of Lockheed Martin ergonomics practitioners to share lessons learned. Both
hourly employees and full-time employees receive training in ergonomics principles, hazards
recognition and correction/prevention with certified ergonomics coaches12. These are only a few
examples identified in the sustainability report to illustrate that Lockheed Martin not only
applied best practices in their business processes but also to share best practices within the
company and among the industry.

Worst Practices
Lockheed has applied some of the best practices in the industry and reporting standards. It has a
comprehensive employee training program to ensure its employees comply with the highest
standards. However, the Lockheed Martin sustainability report also highlights several drawbacks
in the data. In the sustainability report, the concepts of experimental design and statistics
impacting validity and interpretation of values for energy consumption and reduction, actual
amount of land owned and percentage of landfill, emissions and rate frequency are ignored. The
magnitude of this problem is not documented by external audit and environmental advocate
12 2012 Sustainability Report. (2012). Retrieved October 3, 2012, from Lockheed
Martin: http://www.lockheedmartin.com/us/2012-sustainability-report.html
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panel; It is emphasized that emission data were better than an imprecise average value or a
conclusion based on an inadequate research study or incomplete report of what was done as
opposed to having a complete set of data including data from similar industries to provide
credibility to their data; a norm usually observed among sustainability reports of other
corporates. Also a few key elements of the report per the GRI Index were partially explained in
the community, diversity and environment criteria of CSR evaluation. They are listed as follows:

Initiatives to provide energy-efficient or renewable energy-based products and services,

and reductions in energy requirements as a result of these initiatives.

Initiatives to reduce indirect energy consumption and reductions achieved.
Location and size of land owned, leased, managed in, or adjacent to, protected areas and

areas of high biodiversity value outside protected areas.

Descriptions of significant impacts of activities, products, and services on biodiversity in

protected areas and areas of high biodiversity value outside protected areas.
Habitats protected or restored
Strategies, current actions, and future plans for managing impacts on biodiversity.
Number of IUCN Red List species and national conservation list species with habitats in

areas affected by operations, by level of extinction risk.

Other relevant indirect greenhouse gas emissions by weight.
Identity, size, protected status, and biodiversity value of water bodies and related habitats

significantly affected by the reporting organization's discharges of water and runoff.

Initiatives to mitigate environmental impacts of products and services, and extent of

impact mitigation.
Percentage of operations with implemented local community engagement, impact
assessment and development programs.

Although these are not explicitly the worst practices that are observed by industries in general,
the lack of the data does not lay credence to verification standards.

Suggested Improvements
In future sustainability reports, Lockheed Martin needs to provide a benchmark report which
includes comparison with other companies with similar scope, goals, business function and
sustainability standards to assure the credibility of the overall report. Moreover, various external
standards over time and by region, as well as in major industry sectors have to be addressed to
add reliability to the report.
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In order to improve openness and honesty of future sustainability report, Lockheed Martin has to
balance the report with positives and negatives. The previous report tended to highlight the good
news and ignore the bad. The sustainability report which convinces stakeholders is the report
which comes clean, provides a balanced picture and tells both the good and the bad news.
Lockheed Martin has to cut to the chase and to tell stakeholders about the material issues specific
to the company performance to improve the relevance and materiality of future reports. Not only
the carbon emissions should be fully disclosed, but also possible implications on environments,
climate change and mitigation measures taken should be specified in sustainability report.
Seeking environmental advocates input and feedback is also necessary for Lockheed Martin to
prove the credibility of its report. Furthermore, the products and services provided by Lockheed
Martin are responsible for environmental damages in countries its clients conduct war in, and
efforts as well as donations to affected areas, restoration of natural elements should also be
mentioned in further report.
Except for internal audit, external assurance is also essential for Lockheed Martin to guarantee
the trustworthiness of its report. The company can engage an independent third party to verify
aspects of the report, and publishes its methodology, conclusions and recommendations in its
next years sustainability report. It would provide a better picture of Lockheed Martins
accomplishments and increase transparency of sustainability report by adding an external audit to
its report.

Future Considerations
Lockheed Martin, being in the industry they are, has a unique opportunity to set its citizenship
and sustainability efforts in a new direction and set itself apart from efforts of other corporates.
The Lockheed Martin sustainability report can make itself unique by providing answers to few
intangible questions.
What are the conditions in political economy that allows Lockheed Martin to accumulate wealth
through death and torture?
Although Lockheed Martin is not directly involved in warfare in any part of the world, and
arguably the primary purpose of their products is defense and peacekeeping, peace, as we know
15

is the consequent of war. The sustainability report does not mention any actions or plans to
support peacekeeping forces. Lockheed Martin could perhaps contribute a considerable sum to
the United Nations peace keeping forces to maintain peace and order in countries and areas that
have been devastated by war. The sustainability report does not exhibit responsibility towards the
destruction that their products have caused as restitution.
How can Lockheed Martin be governed to prevent environmental and social damage?
The products and services provided by Lockheed Martin to its customers are responsible for
environmental damages in countries its clients conduct war in. The weapons cause considerable
environmental pollution and leave the areas they were deployed non cultivable for a period of a
few years. Lockheed Martin does not appear to take steps to restore these areas to its cultivable
habitat. Warfare also destroys green cover of the land. Lockheed could engage in forestation
activities on a wider scale and attempt to replace the green cover. Lockheed Martin products
cause societal damages, devastating lives and economy of the countries its customers actively
engage in. Lockheed Martin could donate and provide services and actively engage in
reconstruction of the society and economy, to help the country get back on its feet.
Lockheed Martin units across the world utilize considerable amount of energy in terms of fuels.
Lockheed Martin sustainability report mentions effective use of fuel sources to increase
efficiency and reduce carbon emissions. What resources has Lockheed Martin allocated to
research on alternate fuel resources which may aid conservation and reduce emission?
Lockheed Martin states that it was able to reduce power and energy consumption by 87%.
However it appears to be a move motivated by saving money and in the process, saving energy.
This arrangement has resulted in annual savings on $1.25 million and $200,000 in maintenance
costs annually
Lockheed Martin products require raw materials such as various precious metals and chemicals
which are obtained from the environment. What steps is Lockheed Martin taking to research
artificially manufactured raw materials? What are taken by Lockheed Martin to ensure that
residues of precious metals and chemicals are conserved or byproducts are reused for similar or
other purposes?

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The report does not throw light on how the emissions reductions help avert the climate crisis and
make it equitable for all the inhabitants. The sustainability report does not provide a detail
environmental analysis on the carbon emissions it currently produces and the effects reduced
emissions will have. The carbon emissions are still considerably high. The sustainability report
does not specify the benchmark that Lockheed Martin is considering to achieve in carbon
emission reduction. Simply reducing carbon emission that is already high is not convincing.
Furthermore, the report fails to mention any amount of Carbon emissions caused by its products.
Understandably, it is difficult to obtain the data given the circumstances; however there should
be metrics to define the carbon emission of the products.
While we see considerable savings in usage of water (close to 200 million gallons), the amount
of waste in landfill is still considerable. Is Lockheed Martin using any money to research how to
reuse the waste for production or perhaps produce renewable energy from it?
Can Lockheed Martin provide an explanation on its emphasis on employee training and what
role it plays in its citizenship efforts?
The CSR places considerable emphasis on employee training about energy conservation, waste
reduction. This information is not valuable to stakeholders and citizens. It appears to be a task
undertaken by Lockheed Martin to increase the proficiency of the company and achieve a
benchmark in certification standards.
How can credence be laid to the verifications standards of Lockheed Martin?
The sustainability report does not provide benchmark reports compared with other companies in
the same industry such as Northrop Grumman or Skunk Works, an official alias for Lockheed
Martin's Advanced Development Programs (ADP). It would provide a better picture of Lockheed
Martins accomplishments in terms of waste landfill or carbon emission reductions.
The sustainability report mentions situations where the companys actions have been rewarded.
The sustainability report should provide information on the tasks that did not have desired effects
and further plans to implement sustainable activities in order to provide a clearer version of
Lockheed Martins visions and expectations. The sustainability report proposes to use Lockheed
Martins corporate power to create a change rather than oppose and challenge the corporate
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power that is at the root of the problems that they try to address. Answering these questions and
undertaking a different role in citizenship can go a long way in making its sustainability efforts,
which are already good, better.

Conclusion
We welcome the Lockheed Martin sustainability report in that it represents a step forward in
recognizing that environment and human rights have a key role to play in designing a
transformative sustainable development agenda post-2013. We recognize it goes beyond the goal
of extreme efficiency to provide a more holistic view of the root causes of environmental
problems and the multiple and intersecting forms of energy wastage, pollution and emissions that
perpetuate and hamper efforts to break the cycles of rebuilding the environment.
However, as we prepare to debate its recommendations with diverse stakeholders. We call for a
more ambitious and bold agenda that includes profound reforms in key structural areas such as
the model of production and consumption, the global financial architecture, global governance
and monitoring framework to align with human rights, and particularly with women's rights
commitments. We urge Lockheed Martin to recognize civil society and environment as
development actors in their own right as well as together, ensuring they are included in every
stage of the shaping and implementation of a post-2013 sustainable development agenda.

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