Sustainability Report 2020 Sustainability Is Not Just for Our Company
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SUSTAINABILITY REPORT 2020 SUSTAINABILITY IS NOT JUST FOR OUR COMPANY. IT IS FOR OUR WORLD. SOME PROGRESS MAY BE SLOW. SOME MAY BE FAST. BUT IT WILL ALWAYS BE FORWARD. F-16 training simulation mission. INTEGRITY Our decisions and actions are based on ethical, honest and accountable practices. EXCELLENCE We perform at the highest levels through flawless execution, customer focus and constant innovation. RESPECT We tackle every challenge with a sustainable, community-minded and inclusive approach. TABLE OF CONTENTS APPROACH NARRATIVES GOVERNANCE 05 A message from 11 COVID-19 22 Corporate governance William M. Brown 13 Product technology 25 Business ethics 06 About L3Harris 15 Energy/climate change 27 Anti-Corruption 07 Highlights of 2020 17 Diversity & inclusion (D&I) 28 Lobbying and 08 Stakeholder engagement political advocacy 19 Community 09 Focus areas ENVIRONMENTAL SOCIAL REFERENCE 30 EHS and sustainability 38 Human capital 49 Recognitions management system 40 Diversity and inclusion 50 Resources 31 Sustainable products/ 41 Health and safety services and packaging materials 43 Human rights GRI/SASB INDEX 32 Energy and climate change 44 Community 34 Water 45 Supply chain 35 Waste and hazardous waste 46 Data privacy and cybersecurity 47 Product safety and quality COVER IMAGE: L3Harris provides critical imaging and ground system capabilities for the GOES-R Series weather satellite. HERE: L3Harris radomes protect equipment at the Cryptologic Operations Center in Misawa, Japan. Use of U.S. DoD visual information does not imply or constitute DoD endorsement. APPROACH NARRATIVES GOVERNANCE ENVIRONMENTAL SOCIAL REFERENCE GRI/SASB INDEX L3HARRIS SUSTAINABILITY REPORT 2020 05 We launched L3Harris in 2019 with a “ vision to create a company with the scale, resources and capabilities to provide innovative and rapidly fielded solutions to address our customers’ A MESSAGE FROM WILLIAM M. BROWN critical mission needs.” We launched assessment. The assessment confirmed SOCIAL Following the wave of protests against and closely monitors performance against L3Harris in 2019 the areas that are most important to our inequities in society, we reinforced our milestones. with a vision to stakeholders and to our business, and Last year we acted quickly to confront values — promoting frank and sometimes create a company guided us in establishing our long-term goals. COVID-19, enabling nearly half of uncomfortable internal dialogue and The progress we have made so far would not with the scale, our employees to work remotely, and committing to new diversity goals in our have been possible without the support of resources and ENVIRONMENTAL implemented stringent safety protocols first Diversity & Inclusion Annual Report. our Board of Directors, leadership team and capabilities to for all. We supported first responder and And our values of integrity, excellence and dedicated employees. We have internal reporting standards provide innovative other relief efforts and provided funds to respect extend throughout our value chain. to govern our management of energy, There is more to be done, but we remain and rapidly organizations assisting those impacted by greenhouse gas (GHG) emissions, water steadfast in our commitment to achieving our fielded solutions COVID-19. We also advanced payments GOVERNANCE usage and solid waste generation and vision and building an enduring and sustainable to address our to our small business suppliers to improve diversion. We leverage technology to We maintain the highest standards future for our company and our society. customers’ critical their liquidity. continually improve practices that drive of business integrity throughout our mission needs. We are also committed excellence in sustainability. For example, Our communities — particularly those in organization with regular Ethics training, Sincerely, to operate as a company with a high- L3Harris recently signed a virtual renewable the regions where we live and work — a global network of Ethics Advisors and performance culture rooted in strong shared energy power purchase agreement, have remained important to us during a program that encourages employees to values, excellence in everything we do and helping to avoid ~110,000 metric tons of this unprecedented time. We focus our come forward with their concerns without accountability to all our stakeholders. GHG emissions annually — the equivalent community engagement in three areas: fear of retaliation. Our values of integrity, excellence and of removing 24,000 cars from the road STEM education, mission-aligned programs We have a strong governance structure respect have guided us from the start. We each year. and community development. We impact William M. Brown supported by robust policies, operating built on these to establish a comprehensive these areas through financial grants from the Additionally, our technologies for weather principles and processes. Our Board of Chair and Chief Executive Officer Environmental, Social and Governance L3Harris foundation, company gift-matching tracking, ocean mapping, earth observation Directors oversees our corporate strategy, (ESG) strategy including detailed metrics to and employee volunteerism. Additionally, and efficient flight routing help solve business action plans, management measure progress. the company supports the L3Harris Investing environmental challenges and promote For Tomorrow (LIFT) program through mini policies and performance objectives. The To drive ESG activities, we formed a sustainability. grants that empower employees to support senior leadership team develops our three- Steering Committee of senior executives community programs. year strategic plan, drives its execution, who undertook a comprehensive materiality APPROACH NARRATIVES GOVERNANCE ENVIRONMENTAL SOCIAL REFERENCE GRI/SASB INDEX L3HARRIS SUSTAINABILITY REPORT 2020 06 ABOUT L3HARRIS L3Harris Technologies (L3Harris) is an agile global aerospace and defense technology innovator, delivering end-to-end solutions that meet customers’ mission-critical needs. The company INTEGRATED MISSION SYSTEMS SPACE AND AIRBORNE SYSTEMS provides advanced defense and commercial technologies across air, land, sea, space and cyber domains. Publicly traded on the New York Stock Exchange (Symbol: LHX), L3Harris has approximately $18 billion in annual revenue and 48,000 employees, with customers in more than 100 countries. Headquartered in Melbourne, Florida, L3Harris’ operations are structured primarily L3Harris’ largest customers include various around the products, systems and services it Including multi-mission intelligence, surveillance Including space payloads, sensors and full-mission departments and agencies of the United sells and the markets served. The company’s and reconnaissance and communication systems; solutions; classified intelligence and cyber defense; States (U.S.) government and their prime organizational structure features four integrated electrical and electronic systems for avionics; and electronic warfare. contractors. The company’s products, operating business segments. maritime platforms; and advanced electro-optical systems and services have defense and and infrared solutions. civil government applications, as well as commercial applications. COMMUNICATION SYSTEMS AVIATION SYSTEMS L3HARRIS: IN NUMBERS Learn more at L3Harris.com $18B ~48K ~19K >100 annual L3Harris scientists & countries revenue employees engineers supported Including tactical communications; broadband Including defense aviation products; other communications; integrated vision solutions; and commercial aviation products; commercial and public safety. military pilot training; and mission networks for air traffic management. NOTE: Images of employees not wearing masks were taken pre-COVID. APPROACH NARRATIVES GOVERNANCE ENVIRONMENTAL SOCIAL REFERENCE GRI/SASB INDEX L3HARRIS SUSTAINABILITY REPORT 2020 07 We are driving change in the areas that matter most. We do this by living our values through environmental excellence, social commitment and governance with integrity. HIGHLIGHTS OF 2020 Over the past year, L3Harris has implemented multiple initiatives that are already yielding results, as shown below: ENVIRONMENTAL SOCIAL GOVERNANCE 31,637 ~530 ESG Metric Tons of Carbon Dioxide equivalent volunteer community projects steering committee formed, elevating (MT CO2e) in GHG emissions reduced completed in 2020 our focus on sustainability since 2019 7,083 34% 100% tons of waste from operations decrease in Total Recordable Injury score on the Human Rights Campaign sites diverted from landfill Rate (TRIR) from 2019 to 2020 Corporate Equality Index 2020 A- SCORE 1ST DIVERSITY & 100% on CDP water disclosure of employees trained in anti-corruption INCLUSION REPORT policies and procedures released by L3Harris APPROACH NARRATIVES GOVERNANCE ENVIRONMENTAL SOCIAL REFERENCE GRI/SASB INDEX L3HARRIS SUSTAINABILITY REPORT 2020 08 STAKEHOLDER ENGAGEMENT L3Harris takes a holistic view of our company and its role in society. We are committed to serving all of our stakeholders — employees, shareholders, customers, suppliers and community STAKEHOLDER GROUP EXAMPLES OF OUR PRIMARY CHANNELS OF ENGAGEMENT KEY TOPICS OF INTEREST partners, among others. Corporate governance Human capital As a technology innovator, we strive to perspectives from stakeholder groups to deliver solutions that solve some of the help develop and implement the new EMPLOYEES Quarterly executive-led all-hands, company-wide surveys, Diversity and inclusion working groups, employee