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Environment, Safety & Health 2005…

Tags: climate change, community solutions, continuous quest, environment safety, environmental performance, environmental stewardship, esh, future generations, health activities, health performance, leadership perspectives, lockheed martin, performance report, protecting our environment, protecting our environment natural resources, public private partnerships, s vision, safety health, safety performance, stretches,
Pages: 23
Language: english
Created: Thu Jul 26 14:07:12 2007
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                 Environment, Safety & Health
                   2005 Performance Report
                               Table of Contents
                                                   Page
Chairman's Message                                        2

ESH Leadership Message                                    3

Leadership Perspectives                                   5

ESH Policy                                                6

ESH Management System                                     7

Safety Performance and Goals                              8

Environmental Performance and Goals                   10

Climate Change                                        13

Environmental Stewardship                             16

Public/Private Partnerships                           19

Public Policy                                         21

Providing Community Solutions                         22
Chairman's Message
At Lockheed Martin, our commitment to the environment and to the safety and health of
our employees, customers and neighbors stretches beyond what's required or expected.
We take a strategic, integrated approach to protecting our environment, natural resources
and the people who work in and live near our facilities. I'm proud to say that our
continuous quest for improvement is making a difference today ... and for future
generations.

Lockheed Martin's vision is "Powered By Innovation, Guided By Integrity, We Help Our
Customers Achieve Their Most Challenging Goals." Our employees--135,000 of the
most talented people in the world--apply that innovation and integrity to environmental,
safety and health performance every day. All employees--not just those in our
Environment, Safety & Health (ESH) organization--are held accountable for our
performance. Why? Because excellence can only be achieved when everyone works
together toward common goals.

This past year, the Corporation focused more than ever on integrating environmental,
safety and health activities into our daily business operations. Perhaps most critically, we
have incorporated ESH initiatives into the Corporation's LM21 Operating Excellence
program, which means that Lockheed Martin businesses must consider environmental,
safety and health imperatives as they chart their path to overall performance excellence.

We also made significant progress last year in our Target Zero program--an initiative
launched in 2004 to enhance employee safety. The objective of Target Zero is to create a
workplace where there are no injuries and all employees develop and maintain a "zero
accidents" mentality. While our performance has improved, our next step is to accelerate
the pace of change throughout our business operations.

The Corporation is equally committed to environmental excellence. Our performance in
this arena has been strong, with substantial reductions achieved in hazardous waste
generation as well as air and greenhouse gas emissions. New metrics looking past
compliance parameters have been developed and will be rolled out over the next year.
Our intention is to be as pro-active as possible on the environmental front.

Lockheed Martin provides society with some of world's most-advanced products and
services. In the process, we strive to leave no "footprints" and design our operations and
environmental stewardship programs to actually strengthen the environment and the
safety of our facilities and the communities of which they are a part. For us, that is a
critical measure of success ... and a tremendous legacy to pass on to future generations.


Bob Stevens
Chairman, President and Chief Executive Officer
ESH Leadership Message
At Lockheed Martin, our commitment to Environment, Safety & Health (ESH) operating
excellence embodies the Corporation's values and ensures we maintain a keen focus on
protecting our environment, employees, customers and neighbors. This past year was
tremendously rewarding for us, in part because we implemented a strategic direction that
will guide ESH initiatives for years to come.

This new strategic direction highlights Lockheed Martin's direction for environmental,
safety and health excellence and drives ESH performance and reporting to new levels
across the Corporation. It includes:

   1. Broadening employees' perspective beyond simply compliance to even more
      proactive risk management, so employees identify and address concerns before
      they escalate into actual problems.
   2. Driving a corporatewide culture of excellence that expands the Target Zero safety
      initiative concept into other operational areas, such as protection of property or
      products and ensuring that we protect employees and information with perfect
      security.
   3. Optimizing ESH systems, processes and programs across Lockheed Martin and
      leveraging best practices to improve performance.
   4. Developing a corporatewide talent management program to leverage ESH
      resources and manage ESH talent across the Corporation.
   5. Enhancing ESH communication, collaboration and teamwork across the
      Corporation.

Charting this path was one of many achievements in 2005. For me, another milestone
worthy of celebration was that, for the first time ever, a Lockheed Martin business area
set its safety goal at zero. Lockheed Martin Electronic Systems announced that it expects
its employees to eliminate Lost Day Cases by 2008.

Many Lockheed Martin business areas improved their safety records last year. For
example, our Aeronautics Company initiated a Behavior-Based Safety Program for the
production of the forward fuselage of the F-16 multirole fighter aircraft. The program
reduced safety incidents by 50 percent and proved so successful that two other Lockheed
Martin business units have initiated behavior-based programs. Aeronautics has expanded
the effort using its SAFTE teams.

ESH excellence requires buy-in from senior leaders, and no one is more supportive of
ESH initiatives than Bob Stevens and the executive vice presidents of Lockheed Martin's
five business areas. These leaders discuss expectations in staff meetings and closely
monitor their organization's ESH performance. Each business area established
environmental metrics in 2005, and the senior leadership team is kept abreast of
performance against the metrics.
Lockheed Martin has much to be proud of, but there is more we can do. We are moving
toward our corporatewide safety milestone of 50 percent reduction of injuries by 2008.
And we're continuing to reduce our greenhouse gas emissions, our hazardous waste
generation and our use of hazardous chemicals in our factories.

We are committed to ESH excellence and to being a good neighbor who protects the
environment, protects employees and others in and near our facilities, and solves
problems when they occur. ESH excellence is a business imperative. But it's also much
more. It's a commitment that we'll do our part to protect people and the environment.

Ken Meashey
Vice President, Environment, Safety & Health
Leadership Perspectives

Operating excellence requires the best efforts from all our employees every day. That
excellence results in total customer satisfaction and is what makes Lockheed Martin one
of the world's best advanced-technology systems integrators. We apply that same level
of excellence to ESH performance to ensure that we protect our employees and the
environment. We're committed to helping our customers achieve their most challenging
goals.
       -- Christopher E. Kubasik, Executive Vice President and Chief Financial
       Officer, Lockheed Martin Corporation
In order for us to maintain our competitive advantage and live our core values, we need
to focus on the protection of our employees. We need to have a mindset in which all
injuries and accidents are preventable, and we must be steadfast in our commitment to
safety, because it is a critical component of operating excellence.
       -- Michael F. Camardo, Executive Vice President, Lockheed Martin
       Information and Technology Services
Eliminating workplace injuries improves business performance by strengthening
productivity and reducing costs associated with lost time away from work. Focusing on
safety is simply the right way to do business. All of us should go home from work in the
same good health we enjoyed when we arrived.
       -- Robert B. Coutts, Executive Vice President, Lockheed Martin Electronic
       Systems
At Lockheed Martin, we reach far beyond compliance, not because we have to, but
because we're committed to protecting and preserving the environment. By taking a
proactive approach to pollution prevention, and by integrating environmental excellence
into our daily business operations, we are ensuring the ongoing protection of our
employees and the surrounding communities.
       -- Ralph D. Heath, Executive Vice President, Lockheed Martin Aeronautics
Our goal of zero injuries is in line with Space Systems' commitment to 100 percent
Mission Success. We remain focused on working safely through our actions,
communications and commitments. The Space Systems Company safety culture
continues to mature and we are seeing the results. It is imperative that we cultivate an
injury-free workplace mindset in all of our activities to ensure all employees go home as
healthy and whole as they arrived.
       -- G. Thomas Marsh, Executive Vice President, Lockheed Martin Space
       Systems
ESH Policy
Lockheed Martin Corporation is committed to operating in a manner that prevents
accidents and ESH incidents, actively manages risk, conserves natural resources, protects
the environment, and ensures the safety of employees, contractors, and the public. The
Corporation's policy is implemented through Functional Procedures that require all
companies to:

   ·   Include commitments to compliance; protect employees, the environment and
       local communities; and strive for continuous improvement.
   ·   Include a commitment to establish and meet annual ESH objectives.
   ·   Communicate the policy and procedures along with the ESH objectives to all
       employees.
   ·   Review the policy and procedures annually, and update or revise as appropriate.
ESH Management System
Lockheed Martin is among the industry pioneers in instituting Environment, Safety and
Health (ESH) management system requirements for all operations. Those requirements
are based on the International Organization for Standardization (ISO) standards. To
date, 32 Lockheed Martin facilities have obtained ISO 14001 certification and several
other facilities have implemented programs to allow self-certification.

Lockheed Martin's ESH management system consists of eight elements: policy,
compliance requirements, risk assessment, objectives and targets, programs, training,
self-assessment and senior management review. The requirements provide operating
flexibility to business units while ensuring ESH is integrated into operations and
managed in a similar manner to other aspects of the business.

Numerous tools have been developed to help assist businesses in implementing all
aspects of the management system. The backbone is ESHWeb, an enterprise resource
aiding ESH, hazardous materials transportation compliance and risk management. The
site has several thousand pages of information on regulatory, corporate and voluntary
programs as well as extensive databases that assist ESH users with their responsibilities.
It contains a federal and state regulations retrieval service, audit checklists, international
regulatory compliance guidance documents, chemical regulations lookup tables, plain-
English guides to occupational safety, Lockheed Martin corporate policies and
procedures, training resources, performance data, an ESH community of practice list, and
numerous documents on corporate performance, awards and news. ESHWeb continues to
be a strong resource for our talented ESH professionals.

Four additional enterprise tools also have been launched, and a fifth is planned for 2007.
Lockheed Martin's Standard Injury and Illness (LMSII) tool supports the Corporation's
Target Zero safety initiative by tracking occupational injuries and illnesses with the intent
of preventing recurrence. LMSII provides a standard recordkeeping and corrective action
tracking system for the Corporation. The Site Information Database (SID) collects
information on the ESH aspects of individual facilities. Based on the information in SID,
the Self-Assessment Manager (SAM) provides site-specific audit checklists for the
compliance-based aspects identified, including differences between federal and state
regulations. Computer-based training courses provide standardized training information
and on-demand delivery to support a variety of ESH training requirements. This e-
training program can be customized to site-specific needs and is integrated into Lockheed
Martin's Learning Management System, a comprehensive tool designed to deliver and
track employee training.

In 2007, Lockheed Martin plans to implement an updated ESH risk assessment tool to
examine "beyond compliance" aspects of facility operations and hazard controls with the
objective of further reducing ESH-related risks for people, the environment and
Lockheed Martin's stakeholders.
Safety Performance and Goals
In 2004, Lockheed Martin launched a new corporate initiative, Target Zero, to reduce
workplace injury occurrences to zero. Many locations are operating without injuries
thanks to a dedicated effort and firm belief that safety is our highest priority. Three
performance measures have been established for Target Zero: OSHA Injury Recordable
Rate, Days Away Case Rate (DACR) and Severity Rate. Historical performance and
future goals are shown below.

The DACR is determined based on the number of OSHA recordable injury and illness
cases involving days away from work per 100 employees. In 2005, we reached a DACR
of .32, improved from .34 in 2004 and .42 in 2003. Lockheed Martin's goal is to achieve
a Days Away Case Rate of 0.2 by 2008.


                           Days Away Case Rate

          0.45
           0.4
          0.35
           0.3
          0.25
   Rate




           0.2
          0.15
           0.1
          0.05
             0
                    2003                2004                 2005
                                        Year
The recordable injury and illness rate is determined based on the number of OSHA
recordable injuries and illnesses per 100 employees. In 2005, we reached a recordable
rate of 2.04, improved from 2.38 in 2004 and 2.80 in 2003. Lockheed Martin's goal is to
achieve a recordable injury and illness rate of 1.25 by 2008.


                            Recordable Rate

           3
          2.5
           2
   Rate




          1.5
           1
          0.5
           0
                   2003                2004                 2005
                                       Year




The severity rate is the number of days away from work as a result of occupational
injuries and illnesses per 100 employees. In 2005, we reached a severity rate of 10.71,
improved from 11.40 in 2004 and 16.37 in 2003. Lockheed Martin's goal is to achieve a
severity rate of 7.00 by 2008.


                              Severity Rate

          20

          15
   Rate




          10

           5

           0
                  2003                 2004                 2005
                                       Year
  ENVIRONMENTAL PERFORMANCE AND GOALS
Lockheed Martin's environmental program has focused on reducing, reusing and
recycling chemicals used in our manufacturing operations. Specific compounds believed
to adversely impact the environment have been eliminated from operations. Some of
those compounds include polychlorinated biphenyls (PCBs) and ozone depleting
compounds (ODCs). Several Lockheed Martin operating companies have developed
hazardous material management programs and cooperatively work with their customers
to eliminate chemicals of concern. Considerable effort also has been made toward
reducing energy use and greenhouse gas emissions. Overall, our efforts have eliminated
hundreds of tons of annual emissions and improved the environment where we operate.


                                                     Hazardous Waste Generation

                                       6,000


                                       5,000
               aste Generated (Tons)




                                       4,000


                                       3,000


                                       2,000
          Haz W




                                       1,000


                                          0
                                               1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
                                                                        Year



Since 1995, production-related hazardous waste has been reduced 72 percent. That
equates to 4,144 tons of hazardous waste annually that no longer requires packaging,
transportation, and disposal or incineration. Future efforts will be focused on reducing
hazardous material use in production operations.
                                                           TRI Air Emissions

                                   500
   TRI Emissions (Tons)



                                   400


                                   300


                                   200


                                   100


                                     0
                                         1995    1996   1997   1998    1999   2000    2001   2002   2003    2004
                                                                          Year


Total chemical releases, as measured by toxic release inventory (TRI) reports, have been
reduced 94 percent since 1995. A total of 450 tons of annual releases to our environment
have been eliminated. Future efforts are focused on continuing to remove specific
chemicals from operations that are recognized as potential hazards to human health and
the environment.


                                                 Percent Non-Hazardous Waste Recycled
      Non-Haz Waste Recycled (%)




                                   70

                                   60
                                   50

                                   40
                                   30

                                   20
                                   10

                                     0
                                                2002            2003                 2004            2005
                                                                         Year
In 2001, Lockheed Martin initiated a non-hazardous solid waste recycling program. As a
result:
       · In 2004, 55 percent, -- an equivalent of 27,000 tons did not go to community
       landfills.
       · In 2005, 58 percent of non-hazardous solid waste an equivalent of 28,000 tons
       did not go to community landfills
We intend to continually increase the amount of non-hazardous solid waste that is
reduced, renewed, and recycle each year.
Climate Change

Climate change is an important environmental, economic and social issue. More than 90
percent of greenhouse gas (GHG) emission at Lockheed Martin derives from energy use.
Lockheed Martin's energy program, which operates within the ESH organization, sets
energy management policy, tracks the Corporation's energy usage and costs, and
monitors progress in improving energy efficiency and reducing GHG emissions. The
energy program manager works closely with ESH and facility operations managers
across the Corporation to promote energy efficiency through employee education,
improved maintenance practices and capital investments.

Lockheed Martin has invested more than $20 million from 2002-2005 in capital
improvements specifically targeted at increasing energy efficiency and lowering GHG
emissions across the Corporation. To date, nearly 100 projects have been completed in a
variety of project categories. Through these projects, the Corporation has realized
cumulative energy savings of more than $10 million. In January 2006, an additional 31
projects were approved and funded, bringing the total investment amount to $26 million.

Lockheed Martin is a member of the EPA's Climate Leaders program, a voluntary
industry-government partnership that encourages companies to develop long-term
comprehensive climate change strategies and set GHG emission reduction goals. The
Corporation also participates in the Business Roundtable's (BRT) Climate RESOLVE, a
program that seeks to mobilize resources and expertise of BRT member companies
behind the goal of enhanced voluntary action to reduce the GHG intensity of the U.S.
economy.

Lockheed Martin estimates GHG emissions from our operating activities using
established EPA protocols. Our GHG emissions are evaluated using a GHG intensity
ratio that compares equivalent CO2 emissions to dollars of sales. Sales revenue is a
productivity surrogate that provides a convenient means to standardize GHG
measurements across the Corporation's diverse operations. In 2005, the EPA accepted
Lockheed Martin's goal to reduce GHG intensity by 30 percent by 2010 measured
against the 2001 baseline. Sales revenue is also normalized to 2001 dollars for
calculations of progress toward this goal. Through the Corporation's energy efficiency
investments, the GHG emissions intensity ratio at the end of 2005 had been reduced by
approximately 29 percent versus 2001 levels.
                                                     Greenhouse Gas Intensity Reduction
                                                    Corporate Overall Performance vs. Goal

                               70.0
                                      66.5


                                             59.8
                               60.0
                                                                                    Goal = 30% Reduction (46.55) by 2010
                                                     52.1
  Tons CO2/$M Sales (2001 $)




                               50.0                          48.2
                                                                     47.2



                               40.0



                               30.0



                               20.0



                               10.0



                                0.0
                                      2001   2002    2003    2004    2005   2006    2007       2008        2009        2010


The ratio of total energy usage to sales revenue is used as a measure of energy efficiency.
Although operations and sales revenue at Lockheed Martin have grown, energy use for
the Corporation has remained relatively constant.
                                               Efficiency & Sales Revenue (2001 $)


                    800                                                                                            40000



                    700                                                                                            35000




                                                                                                                           Sales Revenue $M (2001 $)
                    600                                                                                            30000
MMBtu/$M (2001 $)




                    500                                                                                            25000



                    400                                                                                            20000



                    300                                                                                            15000



                    200                                                                                            10000



                    100                                                                                            5000



                    -                                                                                              0
                          2001   2002   2003    2004     2005        2006      2007       2008       2009   2010

                                                 MMBtu/$M (2001 $)          Sales Revenue (2001 $)
Environmental Stewardship
Environmental stewardship is an important aspect of Lockheed Martin's commitment to
communities in which we operate. Through its Foundation and operating companies, the
Corporation supports several initiatives, including:

   ·   The National Geographic's Water Trail Program;
   ·   The Chesapeake Bay Foundation's inquiry-based environmental education
       program for public schools;
   ·   The Izaak Walton League of America's Save Our Streams and Wetlands
       programs;
   ·   Environmental Expo at California State University, San Bernardino;
   ·   The Nature Conservancy's Mountains to Marshes program to protect more than
       92 million acres of valuable lands and waters worldwide;
   ·   A national teacher training program at The Keystone Center, where teachers learn
       how to effectively investigate environmental issues with their students; and
   ·   The Conservation Fund's efforts to preserve the country's natural resources
       through public and private partnerships.


Lockheed Martin businesses support initiatives in their local communities as well. For
example:

Lockheed Martin Aeronautics in Fort Worth, Texas:

   ·   Conducted breeding birds surveys sponsored by the U.S. Geological Survey in
       four geographic locations in Texas. Data are used to track changes in bird
       populations and to develop conservation measures to mitigate population declines.
   ·   Conducted Clean Air Fair at two locations at the Fort Worth Plant in July 2005.
       Provided literature and giveaways related to RideShare and ozone reduction
       measures. Also published daily "Ozone Alerts" on company's Web site and
       published weekly articles in company's electronic newsletter on measures to
       reduce ozone.
   ·   Organized a Tarrant County birdwatching "scavenger hunt" for the Fort Worth
       Audubon Society. Event is intended to heighten awareness of urban wildlife and
       the environment and the affects of urban activities on bird populations.
   ·   Held a "Make Cans Count" Event. Event broke all previous records for the Make
       Cans Count program, bringing in 1,860 pounds of aluminum cans and adding
       $966 to the Habitat for Humanity house fund. The fund now holds $14,311, which
       is 28 percent of the $50,000 goal.
   ·   Participated in "Environmental Careers" at Brewer High School Career Day
       located in Fort Worth, Texas.
   ·   Adopted a portion of State Highway 341 located south of the Fort Worth Plant
       and provided quarterly litter pickup of the roadway.
Lockheed Martin Aeronautics in Palmdale, Calif:

   ·   Partnered with the Antelope Valley Air Quality Management District and the
       Sanitation Districts for Los Angeles County, to send four teachers from local
       schools to the Keystone Center's Key Issues Institute: Bringing Environmental
       Issues to the Classroom in Colorado. Key Issues Institute is a national teacher
       training workshop that provides creative and innovative middle-level educators
       with the tools to investigate environmental issues with their students.
   ·   Collaborated with the L.A. Country Sanitation District to present the "Sewer
       Science" program in two AP Environmental Science classes at Lancaster High
       School. Sewer Science is a hands-on lab that teaches high school students about
       municipal wastewater treatment using specially designed tanks, analytical
       equipment, and a student workbook.
   ·   Sponsored and judged the annual Antelope Valley Air Quality Management
       District's clean air poster contest. The contest is open to all students in the
       Antelope Valley area. The winning art work is printed on the annual AVAQMD
       calendar.
   ·   Joined the Antelope Valley Illegal Dumping Task Force in June 2005. The group
       meets once a month to discuss illegal dumping issues, education programs and
       prevention projects.
   ·   Established an Antelope Valley Environmental Education Consortium in July
       2005. The consortium is a collaborative partnership of business, education and
       government to develop environmental education projects and facilitate teacher
       needs in the valley.

Lockheed Martin Aeronautics in Marietta, Ga:

   ·   Supported a local elementary school in launching a recycling program. Posters,
       videos and other promotional information were provided to the school, and
       information related to the LM Aero-Marietta recycling program was relayed
       during a visit to the school on Nov. 9, 2005. ESH also supported the school's fall
       festival on Nov. 12, 2005, by manning a booth and providing information about
       recycling.
   ·   Hosted a team of 12 Georgia Clean Air Campaign (CAC) representatives on June
       28, 2005. The purpose of the CAC's visit was to sign up LM Aero employees for
       the CAC-sponsored rideshare program. This program encourages employees to
       get involved in van and car pools as a means of commuting to and from work, and
       offers incentives for those who participate.

Lockheed Martin Space Systems in Denver, Co.:

   ·   Worked with local governmental agencies to study wildlife and habitat
       conservation and to develop a wildlife corridor within the Chatfield Reservoir
       Basin. During 2005, Space Systems assisted in the selection of a potential
       wildlife corridor route between riparian areas along Plum Creek and those
       adjacent to the South Platte River.
At Lockheed Martin Space Systems ­ Michoud Operations in New Orleans, Louisiana:

   ·   Employee volunteers have helped 46 fellow employees gut their homes, which
       were badly damaged by Hurricane Katrina. The employee volunteers, who call
       themselves the "House Busters," have enhanced the environment as well. Local
       health officials have encouraged the destruction or gutting of severely damaged
       homes in New Orleans to reduce the risk of vermin infestation.
Public/Private Partnerships
OSHA and EPA have found that traditional approaches to regulating industry have
limitations and that public/private partnerships provide a means to achieve better results
and satisfy specific needs of all parties. Both agencies have implemented voluntary
participation programs that yield performance beyond compliance levels. Lockheed
Martin supports the concept of public/private partnerships and participates in these types
of programs.


To date, six Lockheed Martin businesses have achieved OSHA's Voluntary Protection
Programs (VPP) Star certification and 11 are participating in EPA's Performance Track
program. In addition, Lockheed Martin Aeronautics negotiated a relationship similar to
the OSHA VPP Star program that better addresses the needs of both the union and
management for its operation in Fort Worth, Texas.


OSHA Voluntary Protection Program (VPP) sites
       · Maritime Systems & Sensors ­ Manassas, Va.
       · Maritime Systems & Sensors ­ Moorestown, N.J.
       · Maritime Systems & Sensors ­ Syracuse, N.Y.
       · Aeronautics Company ­ Palmdale, Calif.
       · Systems Integration ­ Owego, N.Y.
       · Simulation, Training & Support ­ Orlando, Fla.

EPA's Performance Track (PT) sites
       · Aeronautics Company ­ Marietta, Ga.
       · Aeronautics Company - Palmdale, Calif.
       · Maritime Systems & Sensors, Baltimore, Md.
       · Maritime Systems & Sensors, Syracuse, N.Y.
       · Maritime Systems & Sensors, Manassas, Va.
       · Maritime Systems & Sensors, Moorestown, N.J.
       · Missiles and Fire Control ­ Camden, Ariz.
       · Missiles and Fire Control ­ Dallas, Texas
       · Missiles and Fire Control ­ Orlando, Fla.
       · Space Systems Company, Littleton, Colo.
       · Systems Integration ­ Owego, N.Y.

State Programs
       · Aeronautics ­ Fort Worth, Texas, with Texas OSHA
· Aeronautics ­ Palmdale, Calif., with Cal/EPA
· Space Systems ­ Denver, Colo., with Colorado Environmental Leadership
  Program
· Maritime Systems & Sensors ­ Manassas, Va., with Virginia Environmental
  Excellence Program
Public Policy
In our efforts toward continuous improvement, Lockheed Martin participates in public
policy processes that promote the development of laws and regulations that protect the
environment and human health. Our participation in such activities is based on sound
science and appropriate risk assessment principles. When emerging legislation,
regulation requirements or industry trends are recognized, Lockheed Martin alerts its
business units of the pending changes. Through the identification of best practices from
throughout the enterprise, Lockheed Martin is able to leverage the experience and
expertise of its vast resources to implement the most efficient solutions to the challenges
of today's ever-changing business environment.
Providing Community Solutions
With heritage operations dating back to the early 20th century, Lockheed Martin has built
its success on long-standing innovation and business excellence as well as strategic
acquisitions. Some of the operations conducted over the years, even though in
compliance with relevant laws at the time, resulted in soil or groundwater contamination.
Where remedial actions are warranted, Lockheed Martin has worked aggressively with
regulatory agencies and the community to remedy the impact of the contamination. Some
of our accomplishments are summarized below.

Lockheed Martin began remediating a portion of its former Potrero site in Riverside
County, Calif., several years ago and currently is conducting a comprehensive
environmental investigation to determine if additional remediation is necessary. A
portion of the 9,100-acre property was used for rocket motor testing in the 1960s and
`70s. This site also is the home to threatened and endangered species. The Corporation
and The Conservation Fund partnered with Riverside County, the State of California, and
the U.S. Fish & Wildlife Service to create a conservation area that is considered the
crown jewel of Riverside County's Multiple Species Habitat Conservation Plan. The
Corporation sold the property to the state and the county for a reduced price to create the
conservation area.

Historical airplane manufacturing operations at the former Burbank, Calif., facility
resulted in groundwater contamination in the San Fernando Valley. Working under a
Consent Decree with the U.S. EPA, Lockheed Martin, in cooperation with the City of
Burbank, constructed a 9,000 gallon per minute water treatment system that now supplies
the city with 50 percent of its water requirements. Lockheed Martin also contributed to
the construction of a similar facility in Glendale, Calif.

The offsite groundwater treatment system associated with a former operating facility in
Great Neck, N.Y., went into normal operations this year, treating more than 500 gallons
per minute. Construction and testing of the newly operational treatment system began in
2004. This system complements a similar groundwater treatment plant that has been
operating at the former facility since 2002. Two new monitoring wells also were
constructed at the leading edge of the groundwater plume to provide advance warning of
potential impacts to nearby public water supply wells and to help define the leading edge
of the groundwater plume.

At a heritage site in Middle River, Md., where Lockheed Martin operates an assembly
plant, leases another facility and has sold other parcels of land, the Corporation over the
past several years has collected thousands of samples from about 300 soil, 150
groundwater and 80 creek locations. Chemicals known to have been used during former
industrial operations (including solvents, petroleum, metals and polychlorinated
biphenyls) were detected, but the chemicals present in the environment at the site do not
pose health risks to employees, visitors or residents in the community. Committed to
being a good corporate citizen, Lockheed Martin has entered into the Maryland
Department of the Environment's Voluntary Cleanup Program (VCP), which will ensure
the health and safety of future site users as well as protect the environment. The
Corporation also is conducting environmental investigations on the Martin State Airport
property under Maryland's Superfund program.

During a due diligence assessment conducted in 2000 to support Lockheed Martin's sale
of the former American Beryllium Company (ABC) property in Tallevast, Fla., volatile
organic compounds (VOCs) were identified in shallow groundwater beneath former
concrete sumps located on-site at the eastern portion of the facility. Working with the
Florida Department of Environmental Protection, Lockheed Martin received approval to
implement an interim remedial measure groundwater pump and treat system at the former
ABC facility. The third site assessment has been completed and submitted to the state.
The assessment indicates that groundwater in the vicinity of the site is impacted with
VOCs and 1,4-dioxane. These impacts cover an area of approximately 200 acres and
extend below ground surface approximately 200 feet. Lockheed Martin made a medical
program and a property value guarantee program available to residents in the vicinity of
the site. The medical program provides free examinations to residents and former
employees. The property value guarantee provides gap payments to residents and
property owners wishing to sell their property if they are unable to get full market value
due to the groundwater contamination in the area

The above highlights a small fraction of our ongoing environmental remediation projects.
Lockheed Martin will continue to work aggressively with regulatory agencies and the
community to remedy the impact of historical contamination where remedial action is
warranted.