Green Supply Chains
Our “Go Green” initiative extends to our supply chain partners, whose ability to produce environmentally sound products is critical in helping us meet our goals. We work with suppliers to reduce packaging waste that enters our facilities, to investigate reusable packaging opportunities, and to enhance the offering of Green products that can be recycled and/or composted at our facilities.
Our “Greening the Supply Chain” team works with compliance and contracts organizations to suggest language for new or follow-on proposals as appropriate to reflect Green initiatives. Our goal is to receive timely information from suppliers to assist us in communicating progress toward reducing our waste, water and energy usage as a Corporation and as part of the overall value chain.
Supply Chain Challenges
With tens of thousands of suppliers worldwide, Lockheed Martin continually works to understand the impacts of the regulatory environment throughout our value chain. Additionally, rising commodity costs and resource limitations encourage us to further assess the decisions we make related to material selection and total life cycle costs.
Registration, Evaluation, Authorization (and restriction) of Chemicals (REACH) – A European legislation with global impact, REACH requires us to provide hazardous chemical data to our EU customers. In response, we are working with our supply chain to develop a comprehensive inventory of substances used in our products.
Scarce, Rare Earth Elements – These substances are used in many of our products, including defense systems, communication devices, missile guidance and more. We are developing mitigation strategies to keep rare earth elements in a closed-loop process, reuse materials wherever possible, cut costs, and extend the life of the resource.
Going Green with Office Supplies
In 2009, in partnership with Staples, we kicked off a pilot project at several sites focusing on the procurement of office supplies. We now identify, track and measure the number of purchases and dollars spent on environmentally preferable office supplies versus conventional items. Additionally, we worked with corporate agreement suppliers to raise the minimum purchase order dollar value, thereby reducing the number of deliveries that come into Lockheed Martin facilities. We are currently working with our various business units to make the procurement of environmentally preferable office supplies a mandatory requirement in the future.