Sustainability andPublic-Private

Initiatives

Sean PattonDirector, Energy Solutions

LOCKHEED MARTIN CORPORATIONJUNE 8, 2012

Sustainability for the Future

Sustainability for the Future

Sustainability Starts at Home

View Lockheed Martin Sustainability Report At:http://viewer.zmags.com/publication/9cb9b8f8#/9cb9b8f8/1

Sustainability for the Future

For 100 years Lockheed Martin has brought innovations and achievements that helped our customers rise to some of the world’s most vital challenges.

And we’ll look forward – to emerging global challenges and the technology that will shape our world for the next 100 years.

Sustainability Needs Innovation

Celebrating 100 Years Of Innovation

Sustainability for the Future

Sustainability Needs Product Innovation

We Are Using Our 100 Years Of Innovation And 63,000 Scientists And Engineers To Develop The Next

Generation Of Products And Services For Sustainability

Sustainability for the Future

Federal State/Local

Utilities Commercial

Providing More Than 50 Customers With Energy Solutions For Sustainability

Sustainability Needs Customer Innovation

Sustainability for the Future

Army Air Force Navy

Our Goal is to Align with our Customer’s Objectives for Operations, Products, and

Services

Lockheed Martin’s customers are making energy and sustainability a top priority – U.S. Executive Orders 13423 and 13514 establish sustainability targets for Federal Agencies.

Sustainability Aligns with Customers

Sustainability for the Future

Sustainability Begins With Footprint

25 LEED Certified Facilities7 Facilities Are EPA Energy Star Rated

As part of our building modernization process, we are using On Demand Variable technology which will save millions of dollars in energy costs across our facilities.

Sustainability for the Future

Sustainability Requires Partnerships

By aligning with strategic partners and participating in certification programs, we continuously identify ways to improve performance.

Our partners help us benchmark, measure, and share best practices.

We Are In Good Company!

Sustainability for the Future

Sustainability Requires Measurement

Measurement Drives The Triple Bottom Line … People, Planet, Profit …

Sustainability for the Future

Sustainability Requires Monitoring

2007-2011 Absolute Carbon Emission Reductions By 30%

In 2011, we completed Energy Reduction Structured Improvement Activities (SIAs) at 17 sites that represent more than 80% of our energy use. Hundreds of projects were identified that could save more than $25M annually or 161,000 metric tons of CO2.

We are one of the largest purchasers of green power.

We have consolidated 4,000 of 9,225 data servers that saved more than 26 Million kWh of electricity and $2.6 Million

Sustainability for the Future

Sustainability Requires Monitoring

2007-2011 Water Reduction Reached 23% Or 555 Million Gallons

We have upgraded restrooms, changed cooling tower treatment chemicals and repaired significant leaks, and replaced malfunctioning chillers.

We are implementing xeriscaping projects to eliminate irrigation and replacing water intensive grass.

Sustainability for the Future

Sustainability Requires Monitoring

2007-2011 Waste-To-Landfill Decrease Is 39%

We have partnered with waste and resource recovery suppliers and identified non-landfill options for our waste streams.

Our company sites are composting, recycling, and partnering with suppliers to eliminate packaging waste.

Single stream, desk-side recycling programs have increased our recycling rate by 29%.

Sustainability for the Future

Sustainability Merits Benchmarking

Ranked Highest Performance Score Of All Aerospace & Defense Companies

Carbon Disclosure Project Performance

Sustainability for the Future

Sustainability at DOS Nicaragua

Key To A Good Performance Based Contract, For Both The Agency And ESCO, Is To Not Constrain The Scope

Of ECMs To Be Evaluated

Project Timeline• Project Awarded Nov 2011 • Project Start for Preliminary Assessment Dec 2011• Project Completed for PA in Mar 2012 • Notice to proceed with the IGA on 1 May 2012• On schedule to complete IGA Nov 2012

Project Scope• 57 Acre compound, 11 facilities w/ average age of 6 years• Compound consumes 4.8 million kWh annually at a cost of $1.2 M

Project Goals• Maximum reduction in energy consumption, improve energy efficiency• Implement on-site renewable energy to:

• increase energy security• reduce exposure to electricity and fuel price increases• reduce GHG emissions

• Impact occupant behavior and promote sustainability • Achieve net-zero • Baseline Condition

Sustainability for the Future

Sustainability Projects Require Good ECMsEfficiency Measures• Retrofit fans with Synchronous Belts• Variable Refrigerant Volume DX System• Night Chiller • Solid State Lighting – Interior & Exterior• Lighting Controls• Window Film• Heat Pump Domestic Hot Water Heater• Primary & Secondary Transformer Upgrades• Demand Control Ventilation for Commercial • Kitchen Hoods • Retro-commissioning (RCx)Renewables• Solar Photovoltaic (PV)• Solar Thermal / Domestic Hot Water• Wind Turbine Power• Thermal Storage Cooling• Intelligent Micro Grid w/ Demand Limiting Generator (to support PV)

ECM Result In An Electrical Load Reduction Of 1,793 MWh Or 38%Electrical Reduction From Renewable Generation = 2,174 MWh

Or 48% Electrical Load Reduction

Sustainability for the Future

Thank You

Cathy SnyderVice President Energy & Environment Government Relations

cathy.j.snyder@lmco.com703-413-5751