How Lockheed Martin Pioneers Green Supply Chain Revolution
Lockheed Martin is tirelessly committed to integrating sustainability into its supply chain operations, aiming to enhance environmental stewardship, social responsibility and governance.
The company continuously assesses and strengthens its strategy in this space to address emerging concerns and meet stakeholder expectations.
"As a leader in aerospace and defence, Lockheed Martin believes that sustainability and mitigating supply chain risk go hand-in-hand," explains Abby Lilly, who was recently appointed as Chief Supply Chain Officer at Lockheed Martin.
"That's why we're dedicated to building a supply chain that is not only resilient, but responsible and equipped to meet the evolving needs of our customers and stakeholders."
Developing future talent for sustainable supply chains
Through its Supply Chain Intern programme, Lockheed Martin offers university students real-world experience in addressing sustainability challenges. Each project, sponsored by a functional team within the company, focuses on specific business outcomes.
In 2023, 16 interns worked across four challenge areas, researching key issues and presenting their findings to supply chain leadership and stakeholders.
Following the success of a sector-wide pilot in 2022, one of the 2023 challenges was sponsored by the International Aerospace Environmental Group (IAEG). This initiative aimed to strengthen industry-wide collaboration and support small and medium enterprises (SMEs) in developing their ESG maturity.
Interns devised an engagement model to help IAEG collaborate with industry associations and provide SMEs with access to sustainability resources, before their findings were presented at the IAEG conference in London.
Lockheed Martin plans to build on this success by hosting virtual, industry-wide events that provide SMEs with hands-on experience and amplify their voices in shaping future sustainability initiatives.
One participant reflected on the experience: "Having the opportunity to impact the decisions of an industry-wide group was incredibly insightful and gave me the best understanding of how important each of the ESG principles are to aerospace companies."
Advancing sustainability assessments in aerospace
Also in 2023, Lockheed Martin joined nine major aerospace and defence companies—including Airbus, Boeing, Rolls-Royce and Thales—in adopting IAEG Sustainability Assessments powered by EcoVadis. This voluntary programme seeks to accelerate sustainability efforts across the sector and within supply chains.
The initiative was launched by Work Group 11 – Aerospace Industry ESG Engagement, which identified the benefits of a shared approach to sustainability assessments. By using a common evaluation framework and results pool, IAEG members and suppliers gain valuable insights while reducing redundancy.
The system helps address Scope 3 emissions data, human rights due diligence requirements and sustainability disclosures in compliance with regulations.
Suppliers also benefit from completing a single industry-wide assessment rather than multiple evaluations for different companies. To support them, Lockheed Martin and its partners hosted supplier-focused webinars, introducing them to the assessment process and its benefits. In its first year, the initiative generated nearly 1,000 supplier scorecards, helping businesses measure and improve their sustainability performance.
Ultimately, by integrating sustainability initiatives and leading industry collaboration, Lockheed Martin continues to build a responsible, forward-thinking supply chain.
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