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 resource groups, intranet, e-newsletters nation’s most mission-critical challenges, ESG strategy. Workplace health and safety while at the same time seeking to address Data privacy and cybersecurity ESG-related issues, including reducing We plan to strengthen our efforts and enhance our approach through deeper our environmental impact and addressing Business ethics diversity and inclusion. engagement with new and existing Meetings, virtual trade shows, regular consultation with governments CUSTOMERS Anti-corruption stakeholder groups. and regulators, contractor meetings, customer service feedback Following the Harris Corporation and L3 Sustainable products/services and packaging materials Technologies merger, we conducted a formal Supply chain materiality assessment that incorporated Business ethics SUPPLIERS Sales meetings, conferences, forums Human rights Conflict minerals All environmental topics
COMMUNITY Meetings with community partners, volunteer events Community engagement Diversity and inclusion
Earnings calls, meetings with shareholders and analysts, publications INVESTORS All topics of financial results and presentations, participation in ESG ratings
Supply chain
INDUSTRY PEERS Involvement in industry associations All environmental topics
Diversity and inclusion
NOTE: The table above provides examples of our key engagement methods with our main stakeholder groups, but is not an exhaustive list. APPROACH NARRATIVES GOVERNANCE ENVIRONMENTAL SOCIAL REFERENCE GRI/SASB INDEX L3HARRIS SUSTAINABILITY REPORT 2020 09
As we embark on our ESG strategy and report on our progress in subsequent reports, we look forward to engaging broader stakeholder groups to learn how we can enhance our approach, strengthen our initiatives and maintain a focus FOCUS AREAS of continuous improvement on our ESG program.
As an aerospace and defense company, L3Harris manages and E: ENVIRONMENTAL TOPIC S: SOCIAL TOPIC G: GOVERNANCE TOPIC addresses a broad range of ESG issues. This Sustainability Report, our first comprehensive disclosure of this nature for FOCUS AREAS MATRIX the combined L3Harris company, focuses on key impacts and ESG risks and opportunities relevant to our business and S: Human rights S: Conflict minerals G: Business ethics stakeholders. Understanding and prioritizing the ESG topics on HIGH E: Water E: Sustainable products/ G: Corporate governance services and S: Health and safety which our business has the biggest impact allows the company packaging materials S: Community to focus and report on the key issues. E: Waste and hazardous waste S: Data privacy and cybersecurity In 2020, L3Harris conducted a formal E: EHS and sustainability materiality assessment to establish an ESG management systems E: Energy, climate change program. Based on inputs and information OUR APPROACH TO MATERIALITY: S: Diversity and inclusion gathered from a variety of sources and ESG RANKING AND RATINGS REVIEW: EMPLOYEE WORKSHOPS: Formed G: Anti-corruption activities, we incorporated the perspectives Reviewed surveys and feedback from ESG steering committees and working S: Supply chain of key stakeholders and followed an iterative agencies such as Sustainalytics, Morgan groups, from the Board level to individual process to identify material issues. Through Stanley Capital International (MSCI), and departments, to inform and shape ESG S: Product safety/quality this effort, we expanded the awareness of CDP to understand how L3Harris ESG strategy. Consulting with employees ESG issues across the business, including programs are perceived and what topics helped uncover diverse perspectives to G: Lobbying and S: Human capital employees, executive leaders and Board may need more attention. ensure a stakeholder-driven approach political advocacy and create internal accountability for members. The broad approach helped SHAREHOLDER REQUESTS: Studied the ESG program moving forward. G: Research, development IMPORTANCE TO STAKEHOLDERS TO IMPORTANCE the company enhance its ESG governance ESG-related shareholder requests, tracked and innovation and management systems, increasing the the most common focus areas, and ESG STANDARDIZATION AND BEST identified opportunities to provide more PRACTICES: Used two of the most company’s ability to ensure that the ESG information on our management approach established reporting frameworks, the E: Criteria air pollutants M strategy delivers results in the coming years. and performance. Global Reporting Initiative (GRI) and E: Land, forest, biodiversity Sustainability Accounting Standards Board AEROSPACE AND DEFENSE (SASB) guidelines, to identify material INDUSTRY: Analyzed peer company ESG issues and performance indicators
communications to prioritize common LOW for our organization. ESG issues, assessed effective reporting practices and developed best practices LOW BUSINESS IMPACT HIGH on communicating ESG topics. NOTE: • Topics determined to be materially important to L3Harris and which are addressed in this Sustainability Report are in bold. • Criteria Air Pollutants does not include GHG emissions. NARRATIVES
L3Harris supports assembly, integration and testing of NASA’s James Webb Space Telescope. Image courtesy of NASA. APPROACH NARRATIVES GOVERNANCE ENVIRONMENTAL SOCIAL REFERENCE GRI/SASB INDEX L3HARRIS SUSTAINABILITY REPORT 2020 11
COVID-19 RESPONDING TO THE CHALLENGE OF THE PANDEMIC
2020 challenged L3Harris in unprecedented ways, and we responded quickly to prioritize the health and safety of our employees, support them and their families and ensure the continuity of the supply chain.
PROTECTING OUR EMPLOYEES
L3Harris implemented rigorous safety Measures included a relief fund for procedures in response to the COVID-19 employees facing unexpected financial For more information on our pandemic, including remote work options burdens and expanding our back-up response to COVID-19, please see and stringent workplace hygiene protocols, childcare service, employee assistance related information on page 13 and developed programs to help employees program benefits, and the paid time and at L3Harris.com navigate new burdens. off policy.
The L3Harris Cares Program, which is funded by company and employee contributions, provided grants to over 20,000+ 100 employees facing pandemic-related employees working remotely financial hardship.
Additionally, the L3Harris Foundation’s 21,800 Back-to-School Laptop Program reallocated company computers to the children of hours of backup childcare and employees, based on application and need. eldercare utilized By the end of 2020, ~200 computers were distributed.
Donated laptops APPROACH NARRATIVES GOVERNANCE ENVIRONMENTAL SOCIAL REFERENCE GRI/SASB INDEX L3HARRIS SUSTAINABILITY REPORT 2020 12
We are proud to support L3Harris and, while “ it sounds cliché, you take care of those that COVID-19 take care of you; L3Harris has put their money SUPPORTING OUR SUPPLIERS where their mouth is and our small business The COVID-19 pandemic had a substantial impact on small businesses in the L3Harris is most appreciative. supply chain. These companies are part $675M — John P. Ferrari, Sr. Vice President, Complete Logistics Support, Inc. of the vast network of defense industry ” in payments was accelerated suppliers which are essential to regional to suppliers in 50 states economies as well as to national defense needs. According to a National Defense Industrial Association (NDIA) survey, 67% of companies with less than $1 million in annual L3Harris responded by accelerating more revenue experienced a cashflow disruption. than $675 million in payments to suppliers in all 50 states. Minutemen greatly appreciated “receiving the substantial “Accelerating payments reflects our commitment to support small businesses, payment from L3Harris. This the aerospace and defense supply chain, and influx of monies will go a long the vital U.S. defense industrial base,” said way in helping maintain our William M. Brown, Chair and CEO. “We are proud to help these businesses and their mental and financial stability. regional economies, particularly during this — Carlo J. Castoro, VP & Comptroller, ” difficult economic period.” Minutemen Precision Machine APPROACH NARRATIVES GOVERNANCE ENVIRONMENTAL SOCIAL REFERENCE GRI/SASB INDEX L3HARRIS SUSTAINABILITY REPORT 2020 13
PRODUCT TECHNOLOGY BRINGING LEADING EDGE TECHNOLOGY TO THE FRONT LINES At L3Harris we will push An essential part of L3Harris’ customer commitment is recognizing “ technology boundaries and our responsibility to deploy innovative technologies in critical CASE STUDY: CONNECTING TO CRITICAL focus our resources where times. In 2020, the company delivered on its commitment by FRONT-LINE HEALTHCARE WORKERS supporting nationwide COVID-19 relief and providing assistance to they will have the biggest In late March 2020, within hours of its public safety workers and agencies and those engaged in fighting first license rollout for the multi-state impact for our customers. the extensive and record-breaking fires on the west coast. healthcare system, L3Harris’ BeOn® communications were put into use to We’ll move fast to meet assist healthcare workers in five states customer needs. BeOn® APP CONNECTS HEALTHCARE TEAMS struggling to combat COVID-19. — Chris Kubasik, Vice Chair, President and Healthcare teams used the app to Chief Operating Officer ” In crisis conditions, coordinating necessary immediate, push-to-talk communication for resources and managing patient demand can individuals and groups, and making it easy to exchange text messages and pass real- require rapid, large-scale communications locate and track out-of-building personnel. time location and presence information with multiple agencies and workers in and between connected members. Specific out of hospitals. To assist healthcare and talk groups were created for emergency public safety workers in the worst stages of rooms, triage sites and testing centers. the pandemic, L3Harris provided its leading BeOn® technology enabled more efficient communications software, the BeOn® app, communications for overall public safety, to emergency responders and healthcare nursing (COVID patient inflow), emergency workers responding to COVID-19 at no room (ER) point-to-point and triage, charge for 180 days. in‑home primary care nursing (for at-home The BeOn® app enables users to turn their recovery and isolation) and data updates smartphones, laptops and other devices into from remote location COVID-19 testing encrypted public safety radios, supporting BeOn® mobile app sites. A hospital group in St. Louis said the app was a godsend. APPROACH NARRATIVES GOVERNANCE ENVIRONMENTAL SOCIAL REFERENCE GRI/SASB INDEX L3HARRIS SUSTAINABILITY REPORT 2020 14
PRODUCT TECHNOLOGY FVR-90 AERIAL SYSTEM AIDS IN FIGHT AGAINST WILDFIRES
Called a “game-changer in the fight Our unique technology can against wildland fires” the L3Harris FVR- “ make a difference in emergency 90 unmanned aerial system with sensor 500+ technology was used by California firefighters operations and help save lives. during the unprecedented 2020 wildfires. The firefighters and rescue launch and recoveries at large scale fires FVR stands for Fixed-wing, Vertical takeoff workers are the true heroes. and landing, and Rotary propelled unmanned Our technology provides a aerial systems (UAS). These units fly at high tool to help improve safety altitudes over the fires and beam real-time The FVR-90 system can go from box to visual and heat imagery back to command and decision making. launch in one hour and can be deployed to assist emergency workers in all 50 states centers. This precision situational awareness — Ross Niebergall, Chief Technology” Officer enables command centers to prioritize within 72 hours. It requires no runway or where fire crews and rescue workers additional equipment to be effective. should be deployed. Unlike off-the-shelf quadcopters or multi- rotor models, the FVR-90 can take off vertically and land in areas that are too difficult for conventional aircraft. It can fly non-stop for up to 15 hours, be operated from land or sea, and carry as many as 20 pounds of sensors.
Thus far, 17 active FVR-90 units have flown a total of 1,100 hours including 533 launch and recoveries at large scale fires in Montana, The FVR-90 unmanned aerial system flies safely at high altitudes and Arizona and California. FVR-90 unmanned aerial system beams real-time visual and heat imagery back to command centers. APPROACH NARRATIVES GOVERNANCE ENVIRONMENTAL SOCIAL REFERENCE GRI/SASB INDEX L3HARRIS SUSTAINABILITY REPORT 2020 15
ENERGY/CLIMATE CHANGE REDUCING OUR FOOTPRINT AND TRACKING CLIMATE CHANGE This agreement with L3Harris In our internal operations, as well as in a wide range of external “ is supporting development of applications, L3Harris is stepping up to fight climate change. ELM BRANCH SOLAR FARM: IN NUMBERS new solar energy infrastructure The company is committed to reducing greenhouse gas (GHG) emissions associated with our operations. We focus on reducing ~110,000 MT OF in Texas that will provide a clean energy consumption in our facilities and we are taking steps and economic source of electric to source more renewable energy to reduce the indirect GHG GHG EMISSIONS emissions associated with the electricity we purchase to power power while creating hundreds our operations. We are also using our advanced technology AVOIDED of jobs in the greater Dallas- expertise to help agencies and individuals manage climate-related annually through the agreement, challenges, including the impact of severe weather. equivalent to removing 24,000 fossil Fort Worth area. fuel vehicles from the road every year — Kevin Smith, Chief Executive Officer” (Americas), Lightsource bp FIGHTING CLIMATE CHANGE IN OUR OPERATIONS 100 MW In June 2020, L3Harris entered into a long- The impact of L3Harris’ agreement helps to capacity commitment with Lightsource bp term virtual power purchase agreement avoid approximately 110,000 metric tons (PPA) for renewable energy for up to (MT) GHG emissions annually, equivalent to 100 megawatts of capacity from a new removing 24,000 fossil fuel vehicles from 74% solar farm. The project, known as Elm the road each year. L3Harris will receive of the solar farm’s capacity will be Branch Solar Farm, will be constructed by renewable energy certificates (RECs) from the purchased by L3Harris Lightsource bp near L3Harris facilities in the project which will allow us to reduce our GHG Dallas-Fort Worth area and is expected to emissions from purchased electricity by nearly begin operations in the second half of 2021. 25% and make progress toward the GHG ~25% emissions reduction target of 30% by 2026. reduction in company Scope 2 GHG emissions from purchased electricity APPROACH NARRATIVES GOVERNANCE ENVIRONMENTAL SOCIAL REFERENCE GRI/SASB INDEX L3HARRIS SUSTAINABILITY REPORT 2020 16
ENERGY/CLIMATE CHANGE MITIGATING THE IMPACTS OF CLIMATE CHANGE THROUGH SATELLITE IMAGERY
Satellite imaging and location technologies supported the National Weather Service (NWS) Reducing the time and cost it takes to deploy are responsible for some of the most by sending stunning imagery of Hurricane new technology is critical to staying ahead revolutionary changes in our daily lives. Harvey as it hurtled toward Texas and of increasingly extreme weather. NOAA With weather information instantly available Louisiana. ABI tracked the eye of the storm in selected L3Harris to study future mission through today’s digital apps, it’s easy to real-time, enabling emergency managers to concepts, efficient spacecrafts and advanced overlook the advanced technologies that safely evacuate numerous people. instrumentation solutions. The company make severe weather tracking and hurricane is also investigating how to produce faster, forecasting possible and help to save lives, Harvey blew up so quickly, higher resolution imagery to improve short- protect property and make the nation better “ term forecasts and “nowcasts.” prepared and more resilient when it comes I think without [ABI] Harvey to climate change. These advances are could have been much worse. L3Harris’ focus on technological innovation and continuous improvements has led to the result of years of investment and — Al Roker, NBC Today Show ” dedicated effort. important advancements that have helped people throughout the world forecast L3Harris has worked with the National ABI’s ability to scan the Western Hemisphere and prepare for extreme weather events, Oceanic and Atmospheric Administration every 10 minutes, the continental U.S. every ultimately helping to save lives and reduce (NOAA) for more than five decades, designing five minutes, and localized areas as often property damage. and building critical weather satellite as every 30 seconds, has enabled NOAA to technology to monitor severe weather and improve warnings for many types of natural improve daily weather forecasts. disasters. Continued advancements have increased the average tornado warning time For more information on how we NOAA’s newest satellites carry L3Harris’ from three minutes to about 13 minutes manage our climate change and energy Advanced Baseline Imager (ABI), a quantum and supported earlier detection of wildfires impacts, please see the Environmental leap in forecasting technology. In 2017, ABI before smoke is seen from the ground. section starting on page 29.
NOTE: Images of employees not wearing masks were taken pre-COVID. APPROACH NARRATIVES GOVERNANCE ENVIRONMENTAL SOCIAL REFERENCE GRI/SASB INDEX L3HARRIS SUSTAINABILITY REPORT 2020 17
DIVERSITY & INCLUSION (D&I) LISTENING, LEARNING AND TAKING ACTION ON DIVERSITY AND INCLUSION
L3Harris is committed to inclusion and driving innovation through STEPPING OUT OF OUR COMFORT ZONE diversity of thought. We believe we operate at our best when all employees are empowered to bring their whole selves to work Over the past year, concerns about racial Since the summer L3Harris leaders every day. L3Harris has a long history of diversity and inclusion equality have risen to the forefront of the and employees have been engaged in national discussion. Events have led people conversations about diversity and strategies programs and over the past year we’ve taken additional steps to throughout the country to not only recognize to create a more inclusive workplace. We build a more inclusive environment where everyone feels valued the problem but to ask how they can become created virtual forums across the organization and has equal opportunity to reach their potential. These efforts part of the solution. to enable leaders to listen, employees to also extend to the communities where we work and to our supply ask questions, and individuals to share chain partners. their experiences.
INCLUSION LISTENING SESSIONS
L3HARRIS’ DIVERSITY GOALS: HALF OUR WORKFORCE WILL BE WOMEN Over the past few months, L3Harris has AND AT LEAST A THIRD WILL BE PERSONS OF COLOR Leaders should create an held more than 20 Inclusion Listening “ environment that allows Sessions with more than 25,000 participants To attract the brightest representing a range of functions, locations employees to feel welcomed, “ and the best, we must and experience levels. their voice heard, and their sustain a culture in opinions valued, to ensure
33% which individuals of all they can perform to their best. 50% backgrounds have an 25,000+ — Chris Kubasik, Vice Chair, President and ” equal opportunity to Chief Operating Officer participants in our contribute to the best of Listening Sessions 50% women 33% people of color their abilities every day. — William M. Brown, Chair and ” Chief Executive Officer NOTE: Images of employees not wearing masks were taken pre-COVID. APPROACH NARRATIVES GOVERNANCE ENVIRONMENTAL SOCIAL REFERENCE GRI/SASB INDEX L3HARRIS SUSTAINABILITY REPORT 2020 18
INROADS opened doors “ for me while giving me DIVERSITY & INCLUSION (D&I) the necessary education COURAGEOUS CONVERSATIONS INTEGRITY INROADS COLLEGE LINKS Accountable and tools to succeed. This Ethical Sharing personal stories of overcoming L3Harris reinforced its commitment to future Honest program molds students into bias and adversity can promote a broader innovators, scientists and mathematicians understanding of these issues and open with a $2 million investment in INROADS’ leaders and professionals the door to more candid discussions about College Links, which promotes academic Safe & Sustainable Flawless Execution inclusion. That’s why we developed the success for talented underserved high that we need to make a Community-Minded Customer-Focused school students, particularly those from Courageous Conversations series, in which Inclusive Innovative employees, including senior leaders, share racial minority communities, by focusing socioeconomic impact in the RESPECT EXCELLENCE their personal histories to communicate to on college and career readiness. future. As an alumna, this gift similarly affected individuals that they are not alone and that others have faced these L3Harris understands that now, is greatly appreciated. It will challenges in their careers or personal lives. “more than ever, is a time for us to wrap our arms around our youth. make a huge difference in In the workplace, we know In these conversations, L3Harris colleagues The company’s support will help the lives of many students. “ that diversity and inclusion have shared stories about overcoming physical disabilities and of people making impact more than 11,000 College — Deasia Little, Senior Associate, Test Engineering, make us better as a society, a Space and Airborne Systems ” assumptions about them because of their Links families over three years. company and people. L3Harris gender or ethnic background. Others have — Forest T. Harper, Jr., INROADS CEO ” makes diversity and inclusion a talked about their internal struggles with priority for how we operate as revealing their sexual orientation, and The goal of College Links is to motivate and some have described incidents of racial prepare high-performing students for a holistic a company because it will help harassment or the stress of dealing with college and career experience. The program us continue to be a premier racism on an ongoing basis. The personal includes access to career immersion activities place to work. and conversational nature of these stories and goal planning while improving educational adds an immediacy that helps employees outcomes for high school students interested — Larry Lohman, Vice President,” General Counsel, increase their understanding of challenges Space and Airborne Systems in STEAM (Science, Technology, Engineering, faced by others. Arts and Mathematics) and business careers. NOTE: Images of employees not wearing masks were taken pre-COVID. APPROACH NARRATIVES GOVERNANCE ENVIRONMENTAL SOCIAL REFERENCE GRI/SASB INDEX L3HARRIS SUSTAINABILITY REPORT 2020 19
COMMUNITY LIFTING UP OUR COMMUNITIES LIFT demonstrates our Our communities are more than just places to live. Our commitment to being a communities are where we raise our families, educate our children strong community partner, and come together to share the most memorable parts of our lives. Through employee volunteer activities and strategic giving, supports our employees’ L3Harris is helping our communities respond to shared challenges, volunteer efforts in their create opportunities for growth and drive positive change. respective communities, To guide these efforts for maximum impact, local communities and financial support of in 2019 we launched a significantly expanded qualifying educational institutions. With a and builds employee LIFT LAUNCH DAY EVENT: company-led employee volunteer service focus on efficiency and impact, LIFT features VETERANS DAY pride in L3Harris as a program, LIFT, which stands for L3Harris an online portal to help match interested Investing for Tomorrow. The initiative kicked employees with organizations in need. company that cares. off on Veterans Day, honoring our nation’s 62 3,752 At the LIFT launch event, Chair and CEO veterans with more than 60 day-of-service events volunteer hours William M. Brown, Vice Chair, President events around the country. and COO Chris Kubasik and other L3Harris LIFT supports the L3Harris Foundation, leaders were among 3,600 employees who whose partnerships are organized around 3,600 30,000 participated in day-of-service events and projects in 21 states, logging 3,752 volunteer three pillars that express the company’s employees support packages culture and strategy: STEM (Science, hours in a single day. Technology, Engineering and Mathematics) education programs that inspire and develop the skills of the next generation of Foundation activities include company- scientists and engineers; alignment with our supported, employee-led volunteer service For more information on our customers’ missions, including support for projects and gift matching of employees’ community engagement, please see first responders and transitioning veterans charitable donations. LIFT supports the the Social section starting on page 37. into the workforce; and being active citizens Foundation’s efforts through mini grants that in our local communities. support employee volunteer activities in their
NOTE: Images of employees not wearing masks were taken pre-COVID. APPROACH NARRATIVES GOVERNANCE ENVIRONMENTAL SOCIAL REFERENCE GRI/SASB INDEX L3HARRIS SUSTAINABILITY REPORT 2020 20
We owe a tremendous debt “ to our nation’s veterans, COMMUNITY including 6,500 at L3Harris, LIFT LAUNCH DAY EVENT: VETERANS DAY for serving our country and
STEM MISSION ALIGNED COMMUNITY protecting the freedoms we all cherish. It is only appropriate that we launch our LIFT service initiative on Veterans Day in their honor. — William M. Brown, Chair and Chief Executive Officer STEM event at Stone Middle School in Melbourne. Toy drives were held across L3Harris locations L3Harris Rochester employees assembled meal ” to benefit the Marine Toys for Tots Foundation. packs for students in the Feed My Starving Pictured: Plano, TX Children event.
ADAPTING TO THE PANDEMIC
In light of the COVID-19 environment, L3Harris adapted its approach to community support to include launch of a virtual volunteering playbook and virtual mask-making sessions. We also launched an online edutainment series “Tech in 10” through which L3Harris subject matter experts shared their knowledge with students.
NOTE: Images of employees not wearing masks were taken pre-COVID. GOVERNANCE GRI/SASB DISCLOSURES
L3Harris’ High Technology Center (HTC) in Palm Bay, Florida, was designed using Leadership in Energy and Environmental Design (LEED) guidelines and certified at the Gold level. APPROACH NARRATIVES GOVERNANCE ENVIRONMENTAL SOCIAL REFERENCE GRI/SASB INDEX L3HARRIS SUSTAINABILITY REPORT 2020 22
CORPORATE GOVERNANCE
GRI 102-18 GOVERNANCE STRUCTURE OF THE ORGANIZATION GRI 102-19 DELEGATION OF RESPONSIBILITY ESG MANAGEMENT STRUCTURE
GRI 102-22 COMPOSITION OF THE BOARD AND ITS COMMITTEES GRI 102-20 HIGH-LEVEL ACCOUNTABILITY FOR BOARD OF DIRECTORS SUSTAINABILITY TOPICS GRI 102-23 CHAIR OF THE HIGHEST GOVERNANCE BODY NOMINATING & GOVERNANCE COMMITTEE GRI 102-26 ROLE OF HIGHEST GOVERNANCE BODY IN SETTING GRI 102-29 IDENTIFYING AND MANAGING ECONOMIC, PURPOSE, VALUES, AND STRATEGY ENVIRONMENTAL, AND SOCIAL IMPACTS Ultimate responsibility for ESG strategy GRI 102-31 REVIEW OF ECONOMIC, ENVIRONMENTAL, GRI 102-32 HIGHEST GOVERNANCE BODY’S ROLE AND SOCIAL TOPICS IN SUSTAINABILITY REPORTING ESG STEERING COMMITTEE
Our CEO and COO are briefed by the Accountable for ESG goals MANAGEMENT APPROACH Corporate Vice President (VP) of Global KEY EXECUTIVES INCLUDING: Operations on ESG-related issues. They We are committed to responsible and Our Board regularly discusses and provides provide leadership and direction on the CEO: effective corporate governance to enhance insight and direction on matters of strategic implementation of our ESG strategy Provide Board of Directors updates on creation of sustainable, long-term importance. Our Board’s major responsibilities and together with other executives, ESG-related risks and opportunities shareholder value, and to be accountable also encompass ESG matters such as update our Board on ESG-related risks COO: Provide Board of Directors updates on and responsive to all stakeholders. establishing and maintaining an effective and opportunities. We also have formed ESG-related risks and opportunities governance structure, including appropriate functional groups and committees to Our Board is elected annually by our board composition, planning for board ensure effective management of, and drive CHIEF FINANCIAL OFFICER shareholders and is comprised of twelve succession, and overseeing our ethics and performance across, the broad range of CHIEF HUMAN RESOURCES OFFICER directors, all of whom are independent compliance programs and our activities related ESG topics material to our business. GENERAL COUNSEL except for two employee directors: our Chair to environmental sustainability, diversity and and Chief Executive Officer and our Vice inclusion and corporate citizenship. VP OF GLOBAL OPERATIONS: Chair, President and Chief Operating Officer. Briefs CEO and COO Our directors collectively possess a diverse Our Board and its applicable committees mix of backgrounds, skills and experience, monitor our progress against our targets and a track record of driving long-term value, goals with respect to ESG topics and also and a deep and unique understanding oversee related aspects of our corporate ESG WORKING GROUP of our business and the challenges and strategy, plans of action, management opportunities we face. policies, and performance objectives. Management and executive-level members representing various departments Further information on our current See our 2021 Proxy Statement, pages 25–27, Harmonize ESG programs Board leadership structure, including for additional details on our Board Committees Operational responsibility for implementation our Chair and Lead Independent Director and the role of our Nominating and Governance and tracking of board decisions and day-to-day roles can be found on pages 2–3 of our Committee, in particular. For Board member management of enterprise-wide ESG issues 2021 Proxy Statement. biographies, see pages 10–15. APPROACH NARRATIVES GOVERNANCE ENVIRONMENTAL SOCIAL REFERENCE GRI/SASB INDEX L3HARRIS SUSTAINABILITY REPORT 2020 23
GRI 102-24 NOMINATING AND SELECTING THE HIGHEST GRI 102-30 EFFECTIVENESS OF RISK MANAGEMENT PROCESSES GOVERNANCE BODY includes those risks associated with business Top material risks along with existing GRI 102-25 CONFLICT OF INTEREST In implementing an enterprise risk management (“ERM”) process, our leadership resilience/natural disasters and environmental mitigation plans, are annually approved by is guided by the Committee of Sponsoring compliance. The leadership team also the Executive Committee and reviewed Our Board is responsible for approving Diversity continues to be a consideration Organizations (COSO) framework, which is provides additional input to the survey to by the Board. nominees to stand for election as directors. in the selection of our Board members. the definitive standard designed to prioritize ensure that all material risks are considered. Our Nominating and Governance Committee We understand the value of a diversity organizational risks and measure how assists in this process, identifying individuals of viewpoints, background, experience, those risks impact business performance. it determines are qualified to become personal characteristics, including gender, 2020 marked our first ERM assessment as Board members, and recommending race, ethnicity, age, sexual orientation and a combined company, which included re- ERM OVERSIGHT nominees based on a number of criteria similar demographics. In 2020, we published evaluation and improvements to the process generally relating to professional experience our first Diversity and Inclusion Annual of identifying and assessing the top material AUDIT COMMITTEE BOARD OF DIRECTORS and personal traits as described under Report that speaks to the strategies, goals enterprise risks. our Corporate Governance Guidelines. and results relevant to promoting a diverse Shareholders also can recommend or directly workforce at all levels. To learn more, see our Oversight of the ERM process is provided Annual oversight of ERM process Annual formal review of key risks and mitigation make director nominations following the diversity and inclusion policies, programs and by the Executive Committee. The Board Process uses definitive industry processes described in the 2021 Proxy accomplishments on pages 17 and 40. has approved our use of an ERM process standard (COSO) Board/Committees also assess Statement, page 94. administered by management, as described select risks throughout year below, and considers risks and related Our Corporate Governance Guidelines mitigation identified through our ERM process address a broad set of issues that our Board plus those included in the range of matters believes are integral to sound governance reported by management to our Board. The EXECUTIVE COMMITTEE practices including director independence Audit Committee also performs an annual and conflicts of interest. Our Board assesses review of the enterprise risk process to assist the independence of our directors and in the identification of material risks. examines the nature and extent of any ERM COMMITTEE relationships between us and our directors, The ERM Committee is chaired by the Chief their families and their affiliates. Our Board Ethics & Compliance Officer and includes is guided in this assessment by our Director senior leaders along with representation from COMMUNICATION SPACE & AIRBORNE INTEGRATED AVIATION Independence Standards, available on the each Segment. Annually, the ERM Committee SYSTEMS SYSTEMS MISSION SYSTEMS SYSTEMS Corporate Governance section of our website. reviews and ranks material enterprise-wide risks, identified by subject matter experts across the business, using the potential Segment leadership identify risks impact, likelihood to occur and current mitigation as guidance. This assessment APPROACH NARRATIVES GOVERNANCE ENVIRONMENTAL SOCIAL REFERENCE GRI/SASB INDEX L3HARRIS SUSTAINABILITY REPORT 2020 24
GRI 102-33 COMMUNICATING CRITICAL CONCERNS
Shareholders and other persons who wish to communicate with members of our Board may send an e-mail to the intended recipient(s) c/o our Secretary at [email protected] or may write to the intended recipient(s) c/o our Secretary, L3Harris Technologies, Inc., 1025 West NASA Boulevard, Melbourne, Florida 32919.
GRI 102-35 REMUNERATION POLICIES GRI 102-36 PROCESS FOR DETERMINING REMUNERATION GRI 102-37 STAKEHOLDERS’ INVOLVEMENT IN REMUNERATION
For information on our remuneration policies for Board members and senior executives, see our 2021 Proxy Statement page 40.
GRI 102-38 ANNUAL TOTAL COMPENSATION RATIO GRI 102-39 PERCENTAGE INCREASE IN ANNUAL TOTAL COMPENSATION RATIO
For more information on our CEO pay ratio, see our 2021 Proxy Statement page 87. APPROACH NARRATIVES GOVERNANCE ENVIRONMENTAL SOCIAL REFERENCE GRI/SASB INDEX L3HARRIS SUSTAINABILITY REPORT 2020 25
BUSINESS ETHICS
GRI 102-16 VALUES, PRINCIPLES, STANDARDS, AND NORMS OF BEHAVIOR GRI 102-17 MECHANISMS FOR ADVICE AND CONCERNS ABOUT ETHICS SASB 510a.3 BUSINESS ETHICS
Ensuring an ethical workplace goes beyond VALUES AND GOVERNANCE EMPLOYEES policies and compliance with financial and regulatory standards. It encompasses L3Harris’ unwavering commitment to the All L3Harris employees, officers and BOARD NOMINATING & GOVERNANCE COMMITTEE principles and norms that embody the type highest ethical standards is the cornerstone directors are required to abide by the Provides oversight of the E&C program of organization that consistently operates of our values and continued success. The company’s Code of Conduct to help ensure in an ethical manner, within and outside the Board annually reviews and acknowledges that we consistently conduct our business company, and begins at the top with the the Code of Conduct. The company instills in an ethical and legal manner. Our training EXECUTIVE COMMITTEE/CHIEF E&C OFFICER Board and executive leadership, and includes the highest standards of performance and program requires all employees to complete “Tone from Top” — inspires ethical behavior all employees, suppliers and customers. behavior in our employees, who sign an various ethics & compliance training, such annual pledge to never compromise values as Code of Conduct, trade compliance, anti- in order to achieve business objectives. Our corruption and sexual harassment. Ethics and customers, shareholders, suppliers and CHQ E&C OFFICE compliance related training is administered communities expect nothing less. Maintains and continuously improves E&C program quarterly and translated into the core L3Harris L3HARRIS’ VALUES: languages. Over the past year, we have had The Chief Ethics & Compliance (E&C) officer 100% on-time completion rate for all required is responsible for maintaining and improving ETHICS & COMPLIANCE REVIEW BOARDS (ECRB) ethics & compliance training. INTEGRITY the company’s ethics program, with direct Addresses and resolves allegations of misconduct Accountable, ethical, honest oversight from the Board and support from SUPPLIERS full-time Ethics and Compliance staff members at both the corporate and segment levels. In All new and existing suppliers are provided WORKING GROUPS with our Supplier Code of Conduct outlining the EXCELLENCE addition, Ethics & Compliance Review Boards Augments the ECRB to address less egregious allegations (ECRBs) help ensure proper handling of values and business standards to which they Flawless execution, customer- ethical issues by key senior functional leaders. are expected to adhere, including compliance focused, innovative ECRB’s are set up at the corporate office as with laws, expectations of an ethics program, SEGMENT E&C STAFF and ensuring that they meet appropriate human well as within each segment of our business. Implements E&C program including investigations RESPECT Lastly, more than 125 Ethics Advisors are rights and employment practices obligations. strategically positioned throughout our global Additionally, we require each supplier to Safe & sustainable, community- operations to assist employees with living ETHICS ADVISORS (EAs) — DUAL HATTED EMPLOYEES execute the L3Harris Provisions of Purchase, minded, inclusive our values. This multi-faceted approach, Assists employees and raises concerns to leadership which includes a legal obligation to conduct supports the business in operating ethically business fairly, impartially and in an ethical and in compliance with the specific laws in the and proper manner. countries where we operate. APPROACH NARRATIVES GOVERNANCE ENVIRONMENTAL SOCIAL REFERENCE GRI/SASB INDEX L3HARRIS SUSTAINABILITY REPORT 2020 26
REPORTING
Employees are empowered to report any conduct they believe to be a violation of our Code of Conduct, policies, or the ETHICS CONFERENCE: ETHICS SURVEY: law. Employees may communicate their In 2020, we held a two-day conference to In an effort to continuously monitor and concerns through a number of avenues train and equip our Ethics Advisors to support improve our workplace culture, we conducted including their supervisor, Ethics Advisor, the L3Harris community and ensure that we an all employee ethics survey which had a Human Resources, Legal, or subject matter are living our values every day. This event 61% completion rate. The 2020 survey also experts. Alternatively, employees may included the participation of Board members, resulted in nearly 5,000 employees providing communicate their concerns on a confidential senior leadership, external speakers, E&C comments. L3Harris’ results were compared or anonymous basis using our Helpline staff, and 125 Ethics Advisors from around against the Defense Industry Benchmark, website or phone number. the world. consisting of aerospace and defense counterparts. Leadership will use the data In 2020, L3Harris had a total of 1,194 total Breakout sessions with Ethics Advisors reports averaging 2.41 reports per 100 to strengthen and improve the company’s and senior leaders provided an open line workplace culture in 2021. employees as seen below: of communication to collaborate on the company’s values and promote the CORPORATE POLICIES & PROCEDURES: program throughout the organization. ETHICS REPORTS Our corporate policies govern our business Reports per 100 employees ETHICS WEEK: and help ensure that L3Harris remains in compliance with all laws and regulations 2.41 To raise awareness, in 2020 L3Harris launched 2.07 around the globe. All corporate policies its inaugural “Ethics Week.” It consisted of 1.90 are developed, reviewed and implemented leadership messaging, learning sessions, through a governance body comprised of on‑line games with prizes, electronic and corporate office functional representatives Allegations printed materials, and giveaways and resulted 2018 2019 2020 Inquiries known as the Policy Review Board (PRB). in a high level of employee participation. The PRB is responsible for ensuring cross- functional analysis and communication across the enterprise. These policies are As result of these reports, there were reviewed periodically to ensure ongoing various corrective actions taken including L3Harris’ two-day Ethics Advisor conference compliance with laws and regulations as 74 dismissals, 61 disciplines, 175 coaching/ well as applicability. counseling/training sessions, and 142 other actions such as process/policy improvements and third-party reconciliations. NOTE: Images of employees not wearing masks were taken pre-COVID. APPROACH NARRATIVES GOVERNANCE ENVIRONMENTAL SOCIAL REFERENCE GRI/SASB INDEX L3HARRIS SUSTAINABILITY REPORT 2020 27
ANTI-CORRUPTION
MANAGEMENT APPROACH GRI 205-1 OPERATIONS ASSESSED FOR RISKS RELATED TO CORRUPTION GRI 205-2 COMMUNICATION AND TRAINING ABOUT ANTI-CORRUPTION POLICIES AND PROCEDURES L3Harris is committed to conducting business Under the Anti-Corruption Third Party Policy, in an ethical and transparent manner, risk-based due diligence is performed including complying with anti-corruption on third-party business partners based NUMBER PERCENTAGE laws in countries where we operate. Some of on an assessment of the potential anti- Business segments assessed for these international regulations include the corruption risk. Higher-risk third parties 4 100% U.S. Foreign Corrupt Practices Act, the UK undergo an extensive vetting process prior to corruption risks Bribery Act, and the Canadian Corruption of engagement and periodically over the course Policies & procedures communicated Foreign Public Officials Act. of our relationship. ~48,000 100% to employees Employees participate in annual mandatory Our Anti-Corruption Program Policies & procedures communicated training on the L3Harris Anti-Corruption 275 100% is designed to be effective Program and Policies. International sales to Business Partners and robust. It includes a intermediaries (“Business Partners”) Employees trained clearly articulated policy receive targeted training in anti-corruption ~48,000 100% compliance. L3Harris also conducts an against corruption, as well enterprise-wide anti-corruption compliance as oversight, risk assessment, assessment annually to identify risks and Business Partners trained 275 100% training, third-party due control gaps. diligence, pre-acquisition due The company’s Anti-Corruption Program diligence and post-acquisition has oversight from the Nominating and Governance Committee of the Board of integration processes. Directors. Trained compliance professionals throughout the segments implement The program is continuously reviewed the Anti-Corruption Program and ensure and improved upon. The key components compliance. of our program are detailed in our Global Anti-Corruption Policies. In addition to the Global Anti-Corruption Policy, our Business Courtesies Policy prohibits giving or receiving business courtesies, sponsorships, and charitable contributions as a means to improperly influence business decisions. APPROACH NARRATIVES GOVERNANCE ENVIRONMENTAL SOCIAL REFERENCE GRI/SASB INDEX L3HARRIS SUSTAINABILITY REPORT 2020 28
LOBBYING AND POLITICAL ADVOCACY
MANAGEMENT APPROACH
L3Harris participates in the political and public business ethically, transparently and in policy process in the U.S. at the federal, state compliance with the laws in all countries and local levels. L3Harris engages through where we operate. All political advocacy direct and indirect lobbying to educate policy lobbying and contributions by or on behalf of makers about our solutions that meet our the company are managed by the L3Harris customer’s mission-critical needs across Government Relations team, led by the air, land, sea, space and cyber domains. The Vice President of Government Relations, purpose of these efforts is to communicate our who reports directly to the Chief Executive position on relevant policy issues aligned with Officer. In addition, the company’s Executive L3Harris business objectives. Committee receives regular briefings on lobbying efforts. All political activities are carried out in accordance with our policy to conduct global
GRI 415-1 POLITICAL CONTRIBUTIONS
As a government contractor, L3Harris is L3Harris PAC contributions are made on a subject to laws regulating or prohibiting nonpartisan basis based on a candidate’s political contributions and solicitation positions on issues generally in support of activity. In accordance with federal law L3Harris, its employees, and its shareholders. we have established an employee political action committee (PAC), the L3Harris PAC. In accordance with federal and state laws It is governed by the L3Harris PAC Board, governing political contributions, all PAC whose members are appointed by the Chief contributions are fully disclosed in reports Executive Officer and include executives filed with the Federal Election Commission representing each business segment. The (FEC) [www.fec.gov] and, where applicable, L3Harris PAC is funded solely from the state reporting portals. A listing of L3Harris voluntary personal contributions it receives PAC contributions made in 2019–2020 is from eligible employees. available here. ENVIRONMENTAL GRI/SASB DISCLOSURES
L3Harris’ IVER Autonomous Underwater Vehicles (AUVs) perform coastal applications such as sensor development, general survey work, sub-surface security research and environmental monitoring. APPROACH NARRATIVES GOVERNANCE ENVIRONMENTAL SOCIAL REFERENCE GRI/SASB INDEX L3HARRIS SUSTAINABILITY REPORT 2020 30
EHS AND SUSTAINABILITY MANAGEMENT SYSTEM
Our commitment to environmental sustainability includes measurable objectives and target dates for their achievement.
MANAGEMENT APPROACH
OUR CURRENT ENVIRONMENTAL L3Harris is committed to protecting the All major L3Harris locations conduct a Our employees actively participate in our SUSTAINABILITY PROGRAM 2026 health and safety of our workers, our detailed annual risk assessment to review EHS and Environmental Sustainability GOALS INCLUDE:1 customers, and the environment in the legal and other requirements, changes Programs. A robust software tool enables communities where we operate around to regulations, process changes, and employees to report EHS concerns, 30% the world. By leveraging science and environmental risks, which are ranked, track incidents, compliance, and analyze technology, our employees continually prioritized with corresponding action plans, environmental sustainability data such reduction of GHG emissions improve practices to drive environmental, and managed as part of each location’s as energy use, GHG emissions, water over a baseline year of 2019 health and safety (EHS) and environmental objectives and targets. withdrawal and use and solid waste sustainability excellence. generation from company locations. 20% We have implemented a robust EHS and reduction of water use over a Sustainability Management System to baseline year of 2019 establish policies and standards, provide ADVANCING ENVIRONMENTAL SUSTAINABILITY AND COMPLIANCE: risk assessment tools, and lead enterprise initiatives to reduce operational EHS and GREEN TEAMS were established across the ENVIRONMENTAL SUSTAINABILITY organization and continue to expand. These CALCULATORS and project review environmental impacts. The system is 75% grassroots and cross-functional groups of checklists were implemented to designed to meet a continually evolving and employees seek to identify and implement standardize the review of capital projects solid waste diversion rate dynamic business and operating model and resource conservation, pollution prevention for environmental sustainability risks and from landfill follows recognized external management and waste diversion initiatives that will help opportunities. The calculators evaluate system standards (ISO 14001, ISO 45001 L3Harris achieve its 2026 goals. impacts and cost to understand the and ANSI Z10). positive/negative impact projects have ECO-TREASURE HUNTS are conducted on accomplishing our environmental annually to identify energy efficiency and sustainability goals. In accordance with our Environmental water conservation risks and opportunities Compliance Policy, all L3Harris operations while enabling employees to build a culture THE e3 OPERATIONAL EXCELLENCE worldwide must comply, at minimum, with of continuous improvement. PROGRAM supports our environmental applicable national or federal, state, and sustainability efforts, and L3Harris’ local laws, regulations, directives and environmental sustainability metrics corporate policies. We set higher standards and goals fall under its company-wide mantra of excellence, everywhere, where unacceptable risk is identified. every day.
1Reflects updating of goals and metrics after the merger of L3 Technologies and Harris Corporation. APPROACH NARRATIVES GOVERNANCE ENVIRONMENTAL SOCIAL REFERENCE GRI/SASB INDEX L3HARRIS SUSTAINABILITY REPORT 2020 31
SUSTAINABLE PRODUCTS/ SERVICES AND PACKAGING MATERIALS
MANAGEMENT APPROACH: MATERIALS, PRODUCTS & PACKAGING MANAGEMENT APPROACH: SUSTAINABLE PRODUCTS & SERVICES
With our diverse products and services as domestic and international requirements Many of our products and technologies help and the wide geographic dispersion of our requiring end-of-life management and/or customers improve the sustainability of their ENVIRONMENTAL SUSTAINABILITY facilities, L3Harris uses multiple suppliers restricting materials in products delivered operations and manage climate-related and MEETS INNOVATION for raw materials (such as metals and to customers. While such requirements other environmental challenges, including plastics) and parts. The company monitors typically are not applicable to most the impact of severe weather. TANSO-FTS-2 INSTRUMENT the materials we use in our products across equipment produced by the company, measures GHG concentrations all business segments and geographies, we are committed to compliance with such Specifically, L3Harris applies advanced with extremely high accuracy including the use of recycled materials and rules and regulations, where applicable, information and communications covering the entire globe over a six- any products we reclaim as an organization, with respect to existing and future products technologies to the fields of weather day revisit rate which is critical to climate monitoring and modeling. whether the product is at the end of useful sold into such jurisdictions. forecasting, environmental change monitoring, and GHG emissions TANSO-FTS-2 measures carbon life or for other reasons. The company dioxide, methane and carbon measurement. We develop space, airborne continually looks for opportunities to avoid monoxide simultaneously, allowing the use of hazardous materials in our and ground sensors for persistent and direct scientists to discriminate between products, to reuse or recycle materials, and Read more about L3Harris monitoring. Our products and technologies natural and man-made emissions. innovations in our Product Technology The instrument is deployed on to prevent the generation of waste. are currently used in all facets of climate and Climate Change narratives. science, from the reduction of GHG emissions the Japanese Greenhouse Gases Electronics and other products may be to responding and adapting to climate Observing Satellite-2 (GOSAT-2). subject to environmental regulations in change-related threats. A few examples GOES-R SERIES technology supports different government jurisdictions, such of L3Harris products that demonstrate severe weather forecasting in the where environmental sustainability meets U.S. and Western Hemisphere, early position and intensity of tropical innovation are: storms and hurricanes in the Atlantic and Eastern Pacific, data tracking for fires, fog, frontal systems and other weather patterns across the continental U.S. L3Harris applies advanced information and communications technologies to the fields of weather forecasting, environmental change monitoring, and GHG emissions measurement. APPROACH NARRATIVES GOVERNANCE ENVIRONMENTAL SOCIAL REFERENCE GRI/SASB INDEX L3HARRIS SUSTAINABILITY REPORT 2020 32
ENERGY AND CLIMATE CHANGE
MANAGEMENT APPROACH GRI 302-1 ENERGY CONSUMPTION WITHIN THE ORGANIZATION GRI 305-5 REDUCTION OF GRI 305-1 DIRECT (SCOPE 1) GHG EMISSIONS GHG EMISSIONS L3Harris’ business operations depend on Our standard applies to all company energy and raw materials as key inputs locations, including non-U.S. locations, and GRI 305-2 ENERGY INDIRECT (SCOPE 2) GHG EMISSIONS From 2019 to 2020, we reduced our year- to production processes. Climate-related defines our approach and methodology for GRI 305-4 GHG EMISSIONS INTENSITY over-year Scope 1 and Scope 2 emissions impacts from GHG emissions associated with calculating company-wide GHG emissions. by 31,637 metric tons of CO2e, which is a our processes and energy use are a relevant It describes the management process SASB 130a.1 ENERGY MANAGEMENT 9 percent decrease due to our continued environmental sustainability issue related to governing reduction activities and outlines 2019 2020 focus on energy efficiency and an increased our direct business operations. We strive to the process for reporting progress towards 2019 GHG 2020 GHG use of renewable electricity. We are taking conduct business as a responsible corporate our GHG emissions reduction goal. ENERGY EMISSIONS ENERGY EMISSIONS steps to source more renewable energy (TERAJOULES) (MT CO2e) (TERAJOULES) (MT CO2e) citizen and support efforts to manage and reduce the GHG emissions associated Our Environmental Sustainability Program our environmental footprint through the Fuel: Diesel, propane, gasoline, jet fuel (Scope 1) 1,517 1,215 with the electricity we purchase to power also includes corporate targets and careful use of energy and natural resources. our operations. In 2020, we entered into a objectives. Through collaboration with EHS, Fuel: Natural Gas (Scope 1) 1,110 881 Accordingly, minimizing GHG emissions is long-term virtual power purchase agreement business segments, and leadership, we have one of three key focus areas of our EHS and Total Fuel (Scope 1) 2,627 79,835 2,096 63,554 (PPA) for renewable energy, which will help made it a priority to develop and implement Sustainability Management System. us make progress toward our greenhouse gas appropriately scoped environmental Process and Fugitive (Scope 1) 53 48 emission reduction target. The company has developed a GHG sustainability initiatives and projects to GHG Emissions — Total Scope 1 79,888 63,602 Reporting Standard that governs our conserve energy and reduce GHG emissions. management of energy and GHG emissions. Electricity (Scope 2) 100% grid 2,462 259,372 2,358 245,607 Other Direct Line Energy (Scope 2) 10,233 8,646 GOAL: 30% GRI 302-4 REDUCTION OF ENERGY CONSUMPTION GHG Emissions — Total Scope 2 269,605 254,253 reduction in Scope 1 and 2 GHG TOTAL ENERGY AND GHG EMISSIONS 7,715 349,493 6,551 317,856 emissions by 2026 against a 2019 L3Harris is focused on reducing energy Cost savings and energy and GHG emission baseline. 2020 Progress: 9% consumption in our facilities through energy- reductions are calculated for each project GHG Intensity (MT CO2e /$ Total Revenue) 0.000019 0.000017 efficient lighting and lighting controls, higher- using our Environmental Sustainability efficiency heating and cooling systems, Calculators. In 2020 we identified 47 energy • CO2e = all 7 gases of GHG Protocol CO2, CH4, N2O, HFCs, PFCs, SF6, NF3 improved building management systems efficiency projects with projected annual We develop our GHG emissions inventories in accordance with the WRI GHG Protocol Corporate Standard and in alignment with the This target was developed using the tool International Aerospace Environmental Group (IAEG) Greenhouse Gas Reporting Guidance. The assessment of GHG emissions includes all created by the Science Based Targets initiative and process improvements. The company savings of approximately 6 million kWh. identified sources anticipated to make a material contribution (more than 5%) to our total GHG inventory. also invests in eco-treasure hunts to identify • We monitor GHG emissions from the wholly owned and/or operated properties over which L3Harris has complete operational control in (SBTi) and meets the science-based level of alignment with the criteria provided in the IAEG GHG reporting guidance. All actual emissions are as reported in respective years in the ambition criteria required to limit the global improvements in energy efficiency throughout past, and the figures have not been recalculated due to divestitures at this time with exception to the exclusion of the Harris Night Vision our operations. Energy efficiency projects business, which was divested on September 13, 2019. Other 2020 divestitures are still being evaluated for exclusion in 2021 report. temperature increase to 1.5°C, using the are also identified through our facility • Scope 1 = All direct GHG emissions including: Stationary combustion of fuel by L3Harris locations, and mobile combustion of fuels in absolute contraction approach. The target has L3Harris operated vehicles and process and fugitive emissions / releases from stationary air conditioning units containing HFC refrigerants not yet been verified by the SBTi. infrastructure and real estate planning process. and SF6 from semiconductor and/or electrical equipment at L3Harris properties. • Scope 2 = market-based indirect GHG emissions resulting from the generation of purchased electricity or other direct line energy purchases (e.g., steam). Both location-based and market based emissions are reported in our annual CDP report. APPROACH NARRATIVES GOVERNANCE ENVIRONMENTAL SOCIAL REFERENCE GRI/SASB INDEX L3HARRIS SUSTAINABILITY REPORT 2020 33
GRI 305-3 OTHER INDIRECT (SCOPE 3) GHG EMISSIONS CLIMATE RISK MANAGEMENT
In addition to our efforts to reduce GHG GHG EMISSIONS 2019 / MT CO e 2020 / MT CO e 2 2 emissions from our operations and mitigate Scope 3 Fuel-and-energy-related the impacts of climate change, L3Harris 12,969 12,280 activities (not included in Scope 1 or 2) evaluates potential impacts of climate change on operationally critical water, energy, communication, and transportation Scope 3 Business travel 17,174 15,528 resources for major L3Harris facilities and operations. Climate science data, including Scope 3 Employee commuting 112,437 74,208 average annual temperature, average annual precipitation, sea level rise, and extreme weather events (i.e., extreme Due to the merger of L3 Technologies and Harris Corporation, not all historical business travel data is available at this time. precipitation, seasonal ice cover, extreme cold, hurricanes, forest fires, drought), is Scope 3 emissions result from activities from fuel and energy related activities, reviewed to evaluate the potential impacts associated with L3Harris activities that employee business travel, and commuting of physical climate related risks. The Climate take place and/or arise from sources not and continue to work with the International Risk Management Plan (CRMP) is updated owned or controlled by L3Harris. Therefore, Aerospace Environmental Group (IAEG) to every two years. the collection of indirect, or Scope 3, GHG expand our tracking of other relevant Scope 3 emissions is challenging. We currently emissions sources. track our upstream Scope 3 emissions For more information, please see our CDP Climate Change questionnaire response. APPROACH NARRATIVES GOVERNANCE ENVIRONMENTAL SOCIAL REFERENCE GRI/SASB INDEX L3HARRIS SUSTAINABILITY REPORT 2020 34
WATER
MANAGEMENT APPROACH GRI 303-2 MANAGEMENT OF WATER DISCHARGE-RELATED IMPACTS
Water is essential to all; according to the amount of onsite water use. As part of our Water discharge requirements are determined World Economic Forum (WEF) 2019 Global roadmap for achieving our goals, L3Harris by federal, state and local regulations. Risk Report, water crisis — which captures works with experts and engineers to develop, concerns relating to water availability, quality, evaluate and implement large-scale water sanitation and other needs — is one of the conservation solutions for our operations. GRI 303-3 WATER WITHDRAWAL key challenges facing the world. Minimizing Our investment in eco-treasure hunts GRI 303-5 WATER CONSUMPTION water-related impacts is a key focus of our extends to identifying water conservation EHS and Sustainability Management System projects. Read more in the eco-treasure and Environmental Sustainability Program. hunt discussion in EHS and Sustainability 2019 MEGALITERS 2020 MEGALITERS Management System section. L3Harris operations do not rely on substantial water volume, nor impact water quality We have developed a Water Reporting Potable water 1,897 1,767 GOAL: 20% from our day-to-day operations. While our Standard that governs our management of reduction in water use by dependence on water is not substantial, water-related issues. The standard applies 2026 over a 2019 baseline. Groundwater 0.35 0.67 we do require sustainable access to limited to all company locations, including non- 2020 Progress: 7% amounts of water to keep our operations U.S. locations. It defines our approach and running and for general use at our facilities. methodology for calculating the company- wide water inventory, describes the TOTAL WATER 1,897 1,767 Our focus on water includes evaluating management process governing reduction all aspects of our business operations for activities and outlines the process for The reduced water use is also reflective of conservation opportunities ranging from • We monitor water from the wholly owned and/or operated properties over which L3Harris has complete operational reduced occupancy at many of our facilities reporting progress towards our water control in alignment with the criteria provided in the IAEG GHG reporting guidance. irrigation controls, low-flow toilets/faucets reduction goal. due to COVID-19. and cooling tower efficiencies, to new • The scope of the water inventory includes direct water. technologies and processes to minimize the • Potable water includes municipal water, surface water and other potable water sources. We are currently enhancing our water management procedures and expect to provide more extensive coverage on our GRI 303-1 INTERACTIONS WITH WATER AS A SHARED RESOURCE From 2019 to 2020, we reduced our year- For example, the Space and Airborne approach in subsequent Sustainability over-year water use by 130 Megaliters Systems campus in Colorado Springs, CO Reports. Since water is a shared resource, and water Water Tool, World Resources Institute’s (WRI) which is a 7 percent decrease. During implemented an irrigation management related impacts are localized, in 2019 L3Harris Aqueduct Water Risk Atlas and the Water Risk this time period L3Harris implemented project which achieved a 50% reduction prepared a Water Risk Assessment to identify Filter developed by World Wildlife Fund for water efficiency projects identified by in water use (737,000 gallons) through potential water-related impacts to our business Nature (WWF) in collaboration with Deutsche conducting eco-treasure hunts and through a combination of conservation, system For more information on our water operations. The assessment used data sets Entwicklungsgesellschaft (DEG) to evaluate our enterprise facilities and real estate maintenance, and landscaping that reduces stewardship, please see our CDP available from the World Business Council for potential water-related constraints. The Water improvement process. or eliminates the need for irrigation also Water questionnaire response. Sustainable Development (WBCSD) Global Risk Assessment is updated every two years. known as xeriscaping. APPROACH NARRATIVES GOVERNANCE ENVIRONMENTAL SOCIAL REFERENCE GRI/SASB INDEX L3HARRIS SUSTAINABILITY REPORT 2020 35
WASTE AND HAZARDOUS WASTE
MANAGEMENT APPROACH GRI 306-1 WASTE GENERATION AND SIGNIFICANT WASTE-RELATED IMPACTS Reduction of waste, including resource GRI 306-2 MANAGEMENT OF SIGNIFICANT WASTE-RELATED IMPACTS conservation, pollution prevention, and waste diversion, is one of the key objectives of our All current and future L3Harris sites L3Harris has embedded internal resources SOLID WASTE DIVERSION GOAL AND CONTINUOUS IMPROVEMENT PRINCIPLES Environmental Sustainability Program. producing solid waste fall under our Solid who specialize in waste and manage our waste In alignment with the waste management We have developed a Solid Waste & Recycling Waste & Recycling and Environmental programs. We rely on these individuals and hierarchy, L3Harris’ approach to managing Standard that we apply across our business Compliance Standards. As such, all L3Harris effective partnerships across the organization solid waste generation is realized by that governs our management of solid and locations are responsible for developing to drive a continuous improvement mindset and GOAL: 75% optimizing resources, rather than managing non-hazardous waste, special and universal and maintaining a Solid Waste Management drive progress towards our long-term goal. solid waste diversion rate from discards. Priority is given to source reduction, wastes. Hazardous waste is managed Program which includes: landfill by 2026. 2020 Progress: 39% While the standards do not extend to our reuse, recycling, composting, and energy specifically through our Environmental suppliers, guidance and best practices are recovery before landfill disposal. This Compliance Standard. Our solid waste provided to encourage suppliers to take approach encourages the elimination of and hazardous waste programs, governed a holistic approach to solid waste and solid waste before it is created and may by these standards, include all waste and WASTE MANAGEMENT PROGRAM: improvement and operational excellence. collaborate on opportunities both inside involve redesigning products, changing recycling streams for which L3Harris is Each site will make progress at a different GENERAL WASTE HANDLING BY and outside our own operations, such as manufacturing processes, purchasing more responsible as generated across all locations WASTE TYPE, including solid waste, rate — and some may even exceed the 75% those identified during solid waste durable goods, or reusing/donating materials and operations. special waste, universal waste, and solid waste diversion rate goal. hazardous waste characterization assessments. and products. The Solid Waste & Recycling and L3Harris recognizes and supports locations ONSITE WASTE MANAGEMENT WASTE MANAGEMENT HIERARCHY that choose to exceed our long-term goal and Environmental Compliance Standards are INFRASTRUCTURE to enable efficient L3Harris supports locations align with the Green Business Certification, intended to ensure compliance with all waste and recycling collection that aim to achieve 90% waste Most preferred legal and regulatory requirements, define SOURCE REDUCTION & REUSE Inc.’s (GBCI) Total Resource Use and ONSITE WASTE INVENTORY AND diversion and align with the Efficiency (TRUE) Program for zero waste our approach and methodology for waste WASTE CHARACTERIZATION RECYCLING/COMPOSTING certification. Pursuing a higher standard of minimization, and to facilitate reporting ASSESSMENTS in order to understand GBCI TRUE Program for zero solid waste diversion through practices such progress on our long-term solid waste and evaluate the processes by which waste certification. ENERGY RECOVERY diversion goal. solid waste is generated and disposed as maximizing material usage, conserving of onsite and identify potential TREATMENT commodities through upstream waste & DISPOSAL upstream/downstream reduction and Least preferred prevention, and initiating progressive supply- diversion strategies chain oriented practices is encouraged. Such PROCEDURES FOR IDENTIFYING practices avoid waste generation prior to AND MANAGING WASTE VENDORS point-of-disposal. By implementing changes to optimize waste and recycling efforts onsite in processes, materials, equipment, and reduce costs L3Harris has committed to a 75% solid and behavior that surpass traditional waste diversion rate from landfill and has a approaches to solid waste minimization, common operating philosophy of continuous over 75% solid waste diversion is attainable. APPROACH NARRATIVES GOVERNANCE ENVIRONMENTAL SOCIAL REFERENCE GRI/SASB INDEX L3HARRIS SUSTAINABILITY REPORT 2020 36
GRI 306-3 WASTE GENERATED GRI 306-4 WASTE DIVERTED FROM DISPOSAL GRI 306-5 WASTE DIRECTED TO DISPOSAL
WASTE GENERATION AND DISPOSAL
2019 (tons) 2020 (tons)
7,051 7,083 11,692 10,967
Landfill Diverted from landfill
Following implementation of our enhanced standards we expect to provide further breakdown of the composition of solid waste in subsequent Sustainability Reports.
39% of all waste generated was diverted from landfill in 2020 SOCIAL GRI/SASB DISCLOSURES
An aircraft technician modernizes a C-130 aircraft at an L3Harris facility. APPROACH NARRATIVES GOVERNANCE ENVIRONMENTAL SOCIAL REFERENCE GRI/SASB INDEX L3HARRIS SUSTAINABILITY REPORT 2020 38
HUMAN CAPITAL
MANAGEMENT APPROACH GRI 401-1 NEW EMPLOYEE GRI 401-2 BENEFITS PROVIDED TO FULL-TIME EMPLOYEES THAT ARE HIRES AND EMPLOYEE NOT PROVIDED TO TEMPORARY OR PART-TIME EMPLOYEES Our employees are vitally important to our TURNOVER business. The ability to attract and retain The L3Harris culture prioritizes work-life OUR PERFORMANCE GOALS & the very best talent is essential for our balance, offering full-time employees world- 2020 PROGRESS INCLUDE: 2020 HIRING company to innovate, imagine, invent, and class benefits that support health, finances and deliver mission-critical solutions, so we strive New college graduate (%) family in those countries where we operate: to create a stimulating environment that 33 provides opportunities for growth. As part of RETENTION 37 our recruitment and development strategy, Maintain a voluntary attrition rate Female POC L3Harris is committed to fostering inclusion lower than industry average L3HARRIS’ BENEFITS: 2020 PROGRESS: rate of 7%, and to engage and reward talent. New hires, by gender (%); Total Hires 7,229 lower than industry average HEALTH BENEFITS: In the U.S., L3Harris supplemental savings plans with employer provides a comprehensive suite of benefits match in the U.S., as well as stakeholder To measure our performance, we examine 26 74 including medical, dental, and vision savings plans with company contributions our talent metrics with the same process Female Male insurance and a host of voluntary benefit in the UK. rigor we use to review program status and HIRING offerings. Internationally, we offer access have set the following goals: to various medical, dental and vision WORK/LIFE BALANCE: L3Harris offers Maintain strong focus on university 2020 TURNOVER programs in lieu of or in coordination various programs and benefits that hiring. New college graduate hiring address employee assistance and Employee turnover, by gender (%) with country-sponsored plans. > 10% of annual hiring. counseling, parental support and, in 2020 PROGRESS: 12% of total 6.8 RETIREMENT BENEFITS: To assist some countries, back-up childcare and hiring, with 891 hires in 2020 7.1 employees with building wealth for their eldercare. This includes a parental leave Female Male retirement, L3Harris provides access policy to allow employees to focus on Achieve an intern conversion rate to various statutory and non-statutory their families at key moments in life. of at least 65% retirement programs, such as 401(k) and 2020 PROGRESS: 77%
TALENT GRI 404-1 AVERAGE HOURS OF TRAINING PER YEAR PER EMPLOYEE Helping our employees develop and improve skills through Helping our employees develop and improve mentoring programs and career skills through mentoring programs and growth opportunities. career growth opportunities creates a more 2020 PROGRESS: average 20 20 HOURS engaged and prepared employee base and, annual training hours per employee ultimately, more opportunities to meet is the average annual training organizational goals. hours per employee APPROACH NARRATIVES GOVERNANCE ENVIRONMENTAL SOCIAL REFERENCE GRI/SASB INDEX L3HARRIS SUSTAINABILITY REPORT 2020 39
GRI 404-2 PROGRAMS FOR UPGRADING EMPLOYEE SKILLS GRI 404-3 PERCENTAGE OF EMPLOYEES RECEIVING REGULAR AND TRANSITION ASSISTANCE PROGRAMS PERFORMANCE AND CAREER DEVELOPMENT REVIEWS
PROFESSIONAL AND offerings for executives and high potential Our performance management process TECHNICAL DEVELOPMENT leaders. Our Executive Program (EP) is ensures that 100% of eligible employees TO HELP EMPLOYEES ENHANCE a 5-day program conducted annually for receive annual performance reviews and THEIR SKILLS WE PROVIDE In an ever-changing work environment, experienced executives and our Emerging guidance on opportunities. OPPORTUNITIES FOR: leading a team can be challenging. To help, Leaders Program (ELP) conducted twice L3Harris has developed Frontline Leadership, TRAINING, rotation and development annually for high potential leaders and a standardized training program that equips opportunities newly promoted executives. leaders to maximize team performance by TUITION ASSISTANCE. In 2020, improving communication, coaching and >1,100 employees received assistance ENGINEERS WEEK delegation skills. Frontline Leadership also OUTPLACEMENT SERVICES provided educates leaders about L3Harris talent- L3Harris has approximately 48,000 to displaced employees centric practices, such as engagement and employees, including about 19,000 engineers inclusion, employee recognition, screening and scientists. Among the ways we celebrate and selecting talent, e3 operational their accomplishments and help to inspire excellence and ethics. the next generation of innovation leaders EARLY CAREER DEVELOPMENT is through our company-wide celebration With a focus on continuous learning, We offer multi-year, function-specific of National Engineers Week (EWeek). In L3Harris has also developed functional development programs in Engineering, February, L3Harris employees across 45+ excellence academies in Business Finance, and IT that utilize carefully selected locations throughout the U.S., Canada, Development, Program Management, and rotational assignments to build a broad Australia, the UK, and the United Arab Supply Chain to develop functional expertise knowledge base and accelerate leadership Emirates participated in events, seminars and drive best-in-class performance. These growth in early-career professionals. and capability tours to drive collaboration, programs are taught by L3Harris technical Rotations may span different businesses, foster innovation and increase engagement. disciplines, or geographies, with these experts in interactive sessions that allow diverse experiences supplemented by for technical development, networking, and mentors, additional training, and cross-segment collaboration. networking opportunities. (left–right) L3Harris Board Directors Sallie Bailey and Rita Lane at the 2019 L3Harris Women’s Leadership LEADERSHIP & EXECUTIVE DEVELOPMENT 2020 ENGINEERS WEEK Conference
To prepare the next generation of executive leaders, L3Harris has partnered with OF PROGRESS The Wharton School of the University of Pennsylvania to design and offer two distinct NOTE: Images of employees not wearing masks were taken pre-COVID. APPROACH NARRATIVES GOVERNANCE ENVIRONMENTAL SOCIAL REFERENCE GRI/SASB INDEX L3HARRIS SUSTAINABILITY REPORT 2020 40
DIVERSITY AND INCLUSION
MANAGEMENT APPROACH GRI 405-1 DIVERSITY OF GOVERNANCE BODIES We operate in a competitive industry, and 2020 was the first full year of work for BUILDING A HIGH-PERFORMANCE CULTURE AND EMPLOYEES our future success depends on our continued our Diversity Council, which was selected Our commitment to speed, innovation and empower employees, mitigate bias, advance ability to develop new solutions to our and announced in 2019. The Council is DIVERSITY 20201 customers’ most critical challenges. We headed by our CEO and comprised of flawless execution is matched only by our understanding and drive accountability. believe that complex problems are solved by Employee Resource Group (ERG) leaders and dedication to providing every employee with Generation % of workforce rewarding career opportunities and an We also understand that diversity alone is blending different perspectives, ideas and executives from across the enterprise. The not enough. We must create an inclusive 31 35 32 2 backgrounds at all levels of the organization. Council influences and evaluates company inclusive environment. environment where all voices are heard, Baby boomer GenX Millennial Gen Z We value a diverse employee base that policies and strategies designed to advance Our CEO has signed the CEO Action for and everyone feels confident in contributing reflects multiple points of view, including diversity and inclusion and build a high- Diversity and Inclusion and the Catalyst CEO their ideas. Read more about our diversity Board of Directors (%) those of race, gender, age, education, and performance workforce. Actions for Change, committing our company and inclusion efforts on page 17. 17 experience. to advance diversity, build inclusion, 17 This is true for our workforce, and we are Female POC now embedding the same mindset into our Executives (%) governance bodies. In particular, we believe ~10,000 OUR EFFORTS TO CREATE A WELCOMING, ENGAGING AND INCLUSIVE 31 that a more diverse Board can offer a broader Our ERG footprint has continuously WORKPLACE HAVE BEEN EXTERNALLY RECOGNIZED: 17 range of perspectives to facilitate decisions. grown in our first year as L3Harris, Female POC Although we have no specific diversity with more than 60 local chapters requirement for selecting director nominees, established and approximately TOTAL WORKFORCE (%) we use criteria that include diversity of 10,000 members worldwide. 24 viewpoints, background, experience, 24 personal characteristics, including gender, Female POC race, ethnicity, age, sexual orientation and 1 Data reflects period from Jan. 1, 2020 through ERGs are voluntary, employee-led groups other demographics. We may also consider 100% on the Human The only U.S. aerospace Certification as a Aug. 31, 2020 that bring together colleagues with similar personal characteristics, such as functional Rights Campaign and defense company Great Place to Work values and interests. These high-energy background, executive or professional Corporate Equality Index included on the 2020 groups are a great way to meet new people, experience, and international experience. Our network outside the office, support our Bloomberg Gender Board is also committed to include persons For further information please refer communities and foster professional Equality Index of diverse backgrounds in candidate pools to our Diversity and Inclusion development. For more information on ERGs when seeking new members of the Board. Annual Report. please visit page 14 of our Diversity and Inclusion Annual Report. APPROACH NARRATIVES GOVERNANCE ENVIRONMENTAL SOCIAL REFERENCE GRI/SASB INDEX L3HARRIS SUSTAINABILITY REPORT 2020 41
HEALTH AND SAFETY
MANAGEMENT APPROACH GRI 403-1 OCCUPATIONAL HEALTH AND SAFETY MANAGEMENT SYSTEM
Everyone at L3Harris is responsible for GRI 403-2 HAZARD IDENTIFICATION, RISK ASSESSMENT, AND protecting the health and safety (H&S) of INCIDENT INVESTIGATION our employees, our customers and the GRI 403-3 OCCUPATIONAL HEALTH SERVICES communities where we operate. Leveraging GRI 403-4 WORKER PARTICIPATION, CONSULTATION, AND science and technology, our employees continually improve our practices to drive COMMUNICATION ON OCCUPATIONAL HEALTH AND SAFETY environmental, health and safety (EHS) GRI 403-5 WORKER TRAINING ON OCCUPATIONAL HEALTH AND SAFETY excellence. We employ a learning philosophy focused on risk reduction to improve the L3Harris has implemented a robust EHS The EHS management system follows Management-worker H&S committees, Occupational Health Services are available efficiency of our operations and processes. management system to establish policies the guidelines and principles outlined in working groups and teams exist at many to all L3Harris employees including, at our and standards, risk assessment tools and recognized external management system different levels within the company. Ranging large manufacturing locations, on-site medical “Accept only Zero” starts enterprise initiatives that seek to reduce standards (ISO 14001, ISO 45001 and from Executive EHS Steering Committees staff that provide preventative and reactive or eliminate exposure to daily hazards and ANSI Z10). that give strategic direction to site level care for workplace injuries and illnesses. with each employee. With promote an “Accept Only Zero” mindset. committees to working groups and teams Additionally, L3Harris provides access to a our entire workforce focused that execute initiatives or are focused on triage phone line staffed twenty four hours a on reporting EHS concerns, eliminating a specific hazard or type of injury. day, seven days a week by registered nurses we can make progress and supports a mental health benefit to all IN ACCORDANCE WITH OUR HEALTH AND SAFETY POLICY STANDARD, EACH The corporate EHS team periodically conducts U.S.-based employees through the Employee towards our goal of a zero- LOCATION DEVELOPS A HEALTH AND SAFETY PROGRAM WHICH INCLUDES, audits of locations to verify performance Assistance Program (EAP). injury workplace. AT A MINIMUM, THE FOLLOWING ELEMENTS: and share best practices. Findings from these assessments are recorded using our Processes for worksite analysis, hazard instruction, and training. Our EHS training global EHS tracking system. This tool is one recognition, evaluation, and correction program is focused on compliance and risk. or control of many channels for employees to report Procedures to identify and report imminent EHS concerns. A process for establishing and danger to life, health conditions, or practices communicating H&S responsibilities including ‘stop work’ authority L3Harris is diligent in working to prevent Safe working procedures and EHS Indicators to measure H&S performance, with injury and illnesses in the workplace, but standards to recognize, control and targets that drive continuous improvement when they occur, we take every opportunity anticipate location-specific hazards, Emergency Action Plans and Emergency to learn from them. All near miss and incident along with a process for implementing Response Plans, as applicable reports are investigated to determine their each standard A return-to-work process with clear criteria for cause, significance and corrective actions. Processes to ensure that workers have the bringing injured workers back to work competence to safely undertake assigned tasks through appropriate supervision, An effective management of change process APPROACH NARRATIVES GOVERNANCE ENVIRONMENTAL SOCIAL REFERENCE GRI/SASB INDEX L3HARRIS SUSTAINABILITY REPORT 2020 42
GRI 403-6 PROMOTION OF GRI 403-9 WORK RELATED INJURIES WORKER HEALTH Ensuring a safe workplace remains a top Our focus on building resilient EHS programs priority for L3Harris, and our ultimate goal and systems as well as increasing employee The H&S of our employees in and out of the is to achieve zero injuries and incidents. In awareness and engagement has resulted in workplace is always our top priority. For 34% AND 43% 2020, there were more than 250 injuries a decrease of our Total Recordable Injury information on our medical and benefits reported across the entire enterprise, with Rate (TRIR) and Lost Day Injury Rate (LDIR) programs and other non-occupational DECREASE OF more than 50% attributed to ergonomics by 34% and 43%, respectively, from 2019 to healthcare initiatives, see Human Capital, page 38. and slips, trips and falls. 2020. In 2020, our TRIR was 0.56 and our TRIR AND LDIR LDIR was 0.17. from 2019 to 2020 For information on how we protected and supported employees during the COVID-19 pandemic, see narrative on page 11. MAIN TYPES OF WORK-RELATED INJURIES:
2019 2020 GRI 403-7 PREVENTION AND MITIGATION OF 11% OCCUPATIONAL 25% HEALTH AND SAFETY 11% 32% 33% IMPACTS DIRECTLY
LINKED BY BUSINESS 16% 9% Ergonomic RELATIONSHIPS Falls 30% 13% 20% Contact sharps For information on management of H&S Struck by impacts in our supply chain, see page 45 Other and our Supplier Code of Conduct. APPROACH NARRATIVES GOVERNANCE ENVIRONMENTAL SOCIAL REFERENCE GRI/SASB INDEX L3HARRIS SUSTAINABILITY REPORT 2020 43
HUMAN RIGHTS
MANAGEMENT APPROACH
L3Harris believes in conducting our business in a way that protects human rights throughout our value chain. In IN SUPPORT OF HUMAN RIGHTS: support of this commitment, we have We do not engage in human trafficking developed and implemented associated within our operations and do not willingly policies and compliance plans to ensure or knowingly assist in any human responsible business conduct. trafficking committed by any other party, including suppliers or business partners. More information can be found All L3Harris employees, in our Transparency in Supply Chains — regardless of position, annually Preventing Human Trafficking document, which can be found here. receive Code of Conduct related L3Harris is committed to sourcing training, which includes specific components and materials from human rights and respect in the companies that share our values regarding respect for human workplace content. rights, integrity and environmental responsibility. We annually disclose our due diligence efforts in accordance with SEC regulations, which can be found here. As a Tier 3 member of U.S. Customs Trade Partnership Against Terrorism (CTPAT) program, L3Harris has established a multi-layered security program and corporate policy applicable to all operations worldwide to protect our organization and supply chain from any illegal or illicit activities, to include human trafficking and assist in the worldwide campaign to stop these activities. APPROACH NARRATIVES GOVERNANCE ENVIRONMENTAL SOCIAL REFERENCE GRI/SASB INDEX L3HARRIS SUSTAINABILITY REPORT 2020 44
COMMUNITY
MANAGEMENT APPROACH GRI 413-1 OPERATIONS WITH LOCAL COMMUNITY ENGAGEMENT, IMPACT ASSESSMENT, AND DEVELOPMENT PROGRAMS Community engagement is at the core of our culture. Our commitments to community In 2020, L3Harris provided funds and THE THREE PILLARS: align with our business strategy and reflect support to organizations assisting our values. L3Harris Foundation partnerships STEM: We give to universities, communities affected by COVID-19 (read GOAL: 40% provide targeted philanthropic support to organizations that promote STEM more on page 11) and recently launched communities through strategic investments education and future workforce a social impact grant program. The grants development, and provide coaching OF EMPLOYEES and volunteer hours across three pillars. help nonprofit organizations around the to robotics teams. country address populations affected by L3Harris Investing for Tomorrow (LIFT) is VOLUNTEER MISSION ALIGNED: We support the educational, economic, and healthcare our way of giving back to the communities organizations that promote the by 2023 impacts of COVID-19. Preference is based where we live and work. LIFT encourages wellbeing, development, and on their diversity and inclusion metrics active citizenship by funding employee-led success of our veterans, active duty as well as geographical diversity. volunteer projects, prioritizing those that military (and their families), and first responders through the Special most align with our strategic giving pillars. Operations Warrior Foundation, For more information on LIFT, please see Operation Gratitude, and Army page 19. Historical Foundation, to name a few. 2019 2020 COMMUNITY: We support programs devoted to making meaningful social Charitable giving dollars 2.6M 6.4M contributions in the places where we live and work, including United Way and American Red Cross. # Volunteers (% of total employees) 4,295 (9%) 2,615 (5%)
TOTAL VOLUNTEER HOURS (PER EMPLOYEE) 55,594 (1.13) 35,538 (0.74) APPROACH NARRATIVES GOVERNANCE ENVIRONMENTAL SOCIAL REFERENCE GRI/SASB INDEX L3HARRIS SUSTAINABILITY REPORT 2020 45
SUPPLY CHAIN
MANAGEMENT APPROACH
L3Harris has a diverse, established supply We ensure that we have a supplier base We mentor our suppliers, providing chain with suppliers located throughout that includes small, disadvantaged, veteran, developmental assistance focused on the globe. We value relationships with our disabled and minority owned businesses. technical and business acumen. We have suppliers and foster strategic partnerships Our highly successful Supplier Diversity received three Nunn Perry Awards from with them to ensure the success of our Program provides dedicated support teams the U.S. Department of Defense (DoD) in organization. We conduct our business that facilitate opportunities to provide small recognition of our mentoring efforts. according to the highest ethical standards businesses and other diverse organizations and ensure that our partners are compliant with maximum opportunity to contribute with applicable laws and regulations and to high-tech programs and engage in adhere to our social and environmental technological advances in aerospace and practices. Our Supplier Code of Conduct defense. Together, our work positions +38% applies to all suppliers (see Ethics section L3Harris to better meet customer needs and Since 2015 L3Harris has awarded GRI disclosure 102-16) and we include non- requirements while fostering growth and over 38% of its procurements negotiable clauses regarding ethical, social innovation in small businesses. on Department of Defense (DoD) and environmental aspects in our General programs to small businesses, exceeding the DoD’s goal each year. Provisions of Service. Our suppliers gain access to L3Harris resources that provide a pathway to develop new technologies. L3Harris has successfully Suppliers are required to collaborated with small businesses on For this Sustainability Report, we are unable operate in a manner that actively innovation projects that include Small to provide the GRI disclosures associated Business Innovation Research (SBIR) and manages risk, minimizes waste, with this supply chain management Small Business Technology Transfer (STTR) section (204-1, 308-1, and 308-2), as this and protects the environment. efforts. The L3Harris SBIR Program website information is currently unavailable. We are is a place where subcontractors can evaluate We expect our suppliers to treat enhancing our current enterprise supply Department of Defense (DoD) SBIR topics chain management systems to ensure this people with respect and dignity, and express an interest in partnering. encourage diversity, remain information is sufficiently tracked and can be disclosed in subsequent Sustainability receptive to diverse opinions, Reports, which we expect to be in the next promote equal opportunity two reporting cycles. for all, and foster an inclusive and ethical culture. APPROACH NARRATIVES GOVERNANCE ENVIRONMENTAL SOCIAL REFERENCE GRI/SASB INDEX L3HARRIS SUSTAINABILITY REPORT 2020 46
DATA PRIVACY AND CYBERSECURITY
MANAGEMENT APPROACH: DATA PRIVACY MANAGEMENT APPROACH: CYBERSECURITY
We have assembled a group of experts, We have established a company-wide Due to the nature of our products and the “Privacy Team,” to oversee data privacy Data Privacy Compliance Program covering services and their applications, we consider for L3Harris’ administration. The Team all matters related to the processing and the security of our clients’ data of the CYBERSECURITY EDUCATION FOR OUR SUPPLY CHAIN makes final determinations on all matters security of personal information within utmost importance. Our company-wide L3Harris is a leader and active participant in regarding implementation of the security related to data privacy, and for providing L3Harris. We have concluded that the program is based on the Information Security the National Defense Information Sharing controls found in National Institute of company-wide direction to functional leaders Data Privacy Compliance Program, as Management System, fully certified under and Analysis Center (ND ISAC), where Standards and Technology (NIST) Special and the L3Harris Global Privacy Steering implemented by the Privacy Team, satisfies the ISO 27001 standard and comprised of over 100 A&D companies share the latest Publication 800-171, Protecting Unclassified Committee. This Committee includes leaders all the applicable regulatory standards a cybersecurity organization of nearly 100 information on emerging threats and develop Information in Nonfederal Information across functions throughout L3Harris who and meets the company’s needs from a full-time employees, headed by a Chief best practices to detect, deter and prevent Systems and Organizations. L3Harris cybersecurity attacks. L3Harris is also a developed a supplier portal accessed by work closely with the Privacy Team to governance perspective. Information Security Officer. member of the Defense Industrial Base over 4,800 suppliers to gain informational ensure compliance. Under some circumstances, and consistent L3Harris maintains a Security Operations Cybersecurity (DIB CS), facilitated by the DoD resources on CMMC, access to self- CIO Office, and other industry partnerships assessment and readiness tools, and access with best practices and all applicable Center (SOC) that monitors network and We do not take these matters between the public and private sector. to L3Harris-developed training webinars. laws and regulations, employees and computer activity around the clock every day Over six months, L3Harris has provided five In 2019, L3Harris developed and lightly. We strive to not only third parties may have the right to request of the year. cybersecurity webinars with attendance from implemented a Cybersecurity Maturity Model access to their accounts to erase, rectify, over 1,400 businesses. Access to the portal meet but exceed data privacy Certification (CMMC) education program L3Harris teams continuously scan and training webinars were provided at no cost complete, or amend their information. designed to prepare U.S. Department of best practices. applications and systems for vulnerabilities to L3Harris’ suppliers. Defense subcontractors and suppliers to identify risk. Action plans are created to address risks identified during the scans and are tracked until remedied.
All L3Harris employees are required to take annual cybersecurity training and receive GRI 418-1 SUBSTANTIATED COMPLAINTS CONCERNING BREACHES weekly awareness updates, including OF CUSTOMER PRIVACY AND LOSSES OF CUSTOMER DATA notices regarding changes to policies and procedures. Users are regularly tested to SASB 230a.1 and SASB 230a.2 DATA SECURITY assess the training. In 2020, no data breaches occurred, and we received no complaints in regard to our data management and protection practices. APPROACH NARRATIVES GOVERNANCE ENVIRONMENTAL SOCIAL REFERENCE GRI/SASB INDEX L3HARRIS SUSTAINABILITY REPORT 2020 47
PRODUCT SAFETY AND QUALITY
MANAGEMENT APPROACH
As a global aerospace and defense L3Harris is enhancing our Corporate technology innovator, L3Harris strives to quality team; deploying a streamlined and deliver safe and quality end-to-end solutions proactive strategy which includes developing that meet our customers’ mission critical processes, standards, tools and training to needs. We are committed to providing safety ensure quality continues to be integrated and quality throughout our design, testing throughout the enterprise. and continuous improvement practices. Based on ISO 9001 and AS9100 standards, our Quality Management System enables us to share best practices and continuously collaborate to improve our processes and strengthen our business. At L3Harris, quality is everyone’s responsibility. This includes our suppliers, with whom we are working, to drive quality to a common standard.
Operator Control Unit (OCU) for the T7 robot. REFERENCE
An electrical engineer innovates with over 19,000 engineers and scientists at L3Harris. APPROACH NARRATIVES GOVERNANCE ENVIRONMENTAL SOCIAL REFERENCE GRI/SASB INDEX L3HARRIS SUSTAINABILITY REPORT 2020 49
RECOGNITIONS
L3Harris has been recognized by various organizations for its achievement in multiple ESG areas.
GREAT PLACE GENDER CDP TO WORK EQUALITY INDEX 2020
BEST PLACE BEST EMPLOYER MSCI TO WORK FOR FOR VETERANS ESG LGBTQ EQUALITY APPROACH NARRATIVES GOVERNANCE ENVIRONMENTAL SOCIAL REFERENCE GRI/SASB INDEX L3HARRIS SUSTAINABILITY REPORT 2020 50
RESOURCES
L3Harris publishes a range of resources that provide further information. These are available on our website and cross-referenced in our report, and can be accessed via the links below:
CORPORATE WEBSITE DIVERSITY & INCLUSION REPORT CODE OF CONDUCT 2021 PROXY STATEMENT 2020 ANNUAL REPORT
CODE OF CONDUCT
2021 Proxy Statement and Notice of Annual Meeting
Friday, April 23, 2021 9:00 AM Eastern Time
Virtual Meeting Website: www.virtualshareholdermeeting.com/LHX2021 GRI/SASB INDEX
L3Harris’ MAST-13 autonomous service vehicle (ASV). APPROACH NARRATIVES GOVERNANCE ENVIRONMENTAL SOCIAL REFERENCE GRI/SASB INDEX L3HARRIS SUSTAINABILITY REPORT 2020 52
GRI GENERAL DISCLOSURES
GRI # DISCLOSURE TITLE REFERENCE/LOCATION GRI # DISCLOSURE TITLE REFERENCE/LOCATION
102-1 Name of the organization Approach / About L3Harris, page 06 102-13 Membership associations L3Harris also maintains memberships with a variety of industry and other associations and organizations. 102-2 Activities, brands, products, and services Approach / About L3Harris, page 06 Aerospace Industries Association (AIA) 102-3 Location of headquarters Approach / About L3Harris, page 06 AFCEA Air Force Association 102-4 Location of operations Approach / About L3Harris, page 06 Army Aviation Association of America (AAAA/Quad-A) Association for Unmanned Vehicle Systems (AUVSI) 102-5 Ownership and legal form Approach / About L3Harris, page 06 Association of the United States Army (AUSA) Business Roundtable (BRT) 102-6 Market served Approach / About L3Harris, page 06 Catalyst Inc Defense Industry Initiative on Business Ethics and Conduct (DII) 102-7 Scale of the organization Approach / About L3Harris, page 06 Ethics & Compliance Initiative (ECI) Information on employees and other International Aerospace Environmental Group (IAEG) 102-8 Approach / About L3Harris, page 06 workers National Association for EHS&S Management (NAEM) National Defense Industrial Association (NDIA) 102-9 Supply chain Social / Supply Chain, page 45 National Industry Liaison Group Navy League of the United States Significant changes to the organization 102-10 No key organizational changes occurred in 2020 Renewable Energy Buyers Alliance (REBA) and its supply chain The National Guard Association of the United States (NGAUS) The Naval Submarine League (NSL) 102-11 Precautionary principle or approach Governance / Business Ethics, page 25 The Surface Navy Association (SNA) 102-12 External initiatives L3Harris endorses or participates in several externally The Wings Club developed voluntary programs, charters and initiatives driving standardization and best practices in governance, 102-14 Statement from senior decision-maker Approach / CEO Letter, page 05 environment and equity, particularly in the Aerospace & 102-16 Values, principles, standards, and norms Defense sector. Governance / Business Ethics, page 25 of behavior ISO 14001 102-17 Mechanisms for advice and concerns ISO 45001 Governance / Business Ethics, page 25 ANSI Z10 about ethics GRI Standards 102-18 Governance structure Governance / Corporate Governance, page 22 SBTi APPROACH NARRATIVES GOVERNANCE ENVIRONMENTAL SOCIAL REFERENCE GRI/SASB INDEX L3HARRIS SUSTAINABILITY REPORT 2020 53
GRI # DISCLOSURE TITLE REFERENCE/LOCATION GRI # DISCLOSURE TITLE REFERENCE/LOCATION
102-19 Delegation of authority Governance / Corporate Governance, page 22 102-37 Stakeholder involvement in remuneration Governance / Corporate Governance, page 24
Executive-level responsibility for 102-38 Annual total compensation ratio Governance / Corporate Governance, page 24 102-20 economic, environmental, and Governance / Corporate Governance, page 22 social topics Percentage increase in annual total 102-39 Governance / Corporate Governance, page 24 compensation ratio Composition of the highest governance 102-22 Governance / Corporate Governance, page 22 body and its committees 102-40 List of stakeholder groups Approach / Stakeholder Engagement, page 08
102-23 Chair of the highest governance body Governance / Corporate Governance, page 22 102-41 Collective bargaining agreements Employee section of Annual Report
Nominating and selecting the highest 102-42 Identifying and selecting stakeholders Approach / Stakeholder Engagement, page 08 102-24 Governance / Corporate Governance, page 23 governance body Approach / Stakeholder Engagement, page 08 102-43 Approach to stakeholder engagement 102-25 Conflicts of interest Governance / Corporate Governance, page 23 Governance / Lobbying and Political Advocacy, page 28
Role of highest governance body in setting 102-44 Key topics and concerns raised Approach / Stakeholder Engagement, page 08 102-26 Governance / Corporate Governance, page 22 purpose, values, and strategy Unless otherwise noted, L3Harris full global operations are Entities included in the consolidated Identifying and managing economic, 102-45 represented in this report, including activities at all facilities 102-29 Governance / Corporate Governance, page 22 financial statements environmental, and social impacts owned and leased, over which we have operational control.
Effectiveness of risk management Defining report content and topic 102-30 Governance / Corporate Governance, page 23 102-46 Approach / Focus Areas, page 09 processes boundaries
Review of economic, environmental, and 102-31 Governance / Corporate Governance, page 22 102-47 List of material topics Approach / Focus Areas, page 09 social topics 102-48 Restatements of information This is the first Sustainability Report for L3Harris, therefore Highest governance body’s role in 102-32 Governance / Corporate Governance, page 22 102-49 Changes in reporting there are no restatements or changes from previous reports. sustainability reporting
102-50 Reporting period This is the first Sustainability Report for L3Harris and covers 102-33 Communicating critical concerns Governance / Corporate Governance, page 24 the calendar year from January 1 to December 31, 2020. 102-51 Date of most recent report L3Harris intends to report on our ESG initiatives and progress 102-35 Remuneration policies Governance / Corporate Governance, page 24 102-52 Reporting cycle and publish a Sustainability Report annually. 102-36 Process for determining remuneration Governance / Corporate Governance, page 24 APPROACH NARRATIVES GOVERNANCE ENVIRONMENTAL SOCIAL REFERENCE GRI/SASB INDEX L3HARRIS SUSTAINABILITY REPORT 2020 54
GRI # DISCLOSURE TITLE REFERENCE/LOCATION
We welcome your feedback on our Sustainability Report, as 102-53 Contact point for questions regarding the well as any other comments or questions you may have. You report may contact us at [email protected]
This Sustainability Report has been prepared in accordance Claims of reporting in accordance with the 102-54 with the GRI Standards: Core Option, and has also been GRI Standards developed to include key SASB disclosure topics.
102-55 GRI content index page 51
102-56 External assurance No external assurance APPROACH NARRATIVES GOVERNANCE ENVIRONMENTAL SOCIAL REFERENCE GRI/SASB INDEX L3HARRIS SUSTAINABILITY REPORT 2020 55
GRI ECONOMIC DISCLOSURES
GRI 204 PROCUREMENT PRACTICES
GRI # DISCLOSURE TITLE REFERENCE/LOCATION
Explanation of the material topic, its
MANAGEMENT boundary, how the topic is managed, Social / Supply Chain, page 45 APPROACH and mechanisms for evaluating the effectiveness of the company’s strategy
GRI 205 ANTI-CORRUPTION
GRI # DISCLOSURE TITLE REFERENCE/LOCATION
Explanation of the material topic, its
MANAGEMENT boundary, how the topic is managed, Governance / Anti-Corruption, page 27 APPROACH and mechanisms for evaluating the effectiveness of the company’s strategy
Operations assessed for risks related 205-1 Governance / Anti-Corruption, page 27 to corruption
Communication and training about anti- 205-2 Governance / Anti-Corruption, page 27 corruption policies and procedures APPROACH NARRATIVES GOVERNANCE ENVIRONMENTAL SOCIAL REFERENCE GRI/SASB INDEX L3HARRIS SUSTAINABILITY REPORT 2020 56
GRI ENVIRONMENTAL DISCLOSURES
GRI 301 MATERIALS
GRI # DISCLOSURE TITLE REFERENCE/LOCATION GRI # DISCLOSURE TITLE REFERENCE/LOCATION
Explanation of the material topic, its Interactions with water as a shared 303-1 Environment / Water, page 34 MANAGEMENT boundary, how the topic is managed, Environment / Sustainable Products/Services and resource APPROACH and mechanisms for evaluating the Packaging Materials, page 31 effectiveness of the company’s strategy Management of water discharge-related 303-2 Environment / Water, page 34 impacts
303-3 Water withdrawal Environment / Water, page 34 GRI 302 ENERGY 303-5 Water consumption Environment / Water, page 34
GRI # DISCLOSURE TITLE REFERENCE/LOCATION
Explanation of the material topic, its GRI 305 EMISSIONS Environment / Energy and Climate Change, page 32 MANAGEMENT boundary, how the topic is managed, Environment / EHS and Sustainability Management APPROACH and mechanisms for evaluating the System, page 30 GRI # DISCLOSURE TITLE REFERENCE/LOCATION effectiveness of the company’s strategy Explanation of the material topic, its Energy consumption within the Environment / Energy and Climate Change, page 32 302-1 Environment / Energy and Climate Change, page 32 MANAGEMENT boundary, how the topic is managed, organization Environment / EHS and Sustainability Management APPROACH and mechanisms for evaluating the System, page 30 effectiveness of the company’s strategy 302-4 Reduction of energy consumption Environment / Energy and Climate Change, page 32 305-1 Direct (Scope 1) GHG emissions Environment / Energy and Climate Change, page 32
GRI 303 WATER AND EFFLUENTS 305-2 Energy indirect (Scope 2) GHG emissions Environment / Energy and Climate Change, page 32
305-3 Other indirect (Scope 3) GHG emissions Environment / Energy and Climate Change, page 33 GRI # DISCLOSURE TITLE REFERENCE/LOCATION 305-4 GHG emissions intensity Environment / Energy and Climate Change, page 32 Explanation of the material topic, its Environment / Water, page 34 MANAGEMENT boundary, how the topic is managed, Environment / EHS and Sustainability Management 305-5 Reduction of GHG emissions Environment / Energy and Climate Change, page 32 APPROACH and mechanisms for evaluating the System, page 30 effectiveness of the company’s strategy APPROACH NARRATIVES GOVERNANCE ENVIRONMENTAL SOCIAL REFERENCE GRI/SASB INDEX L3HARRIS SUSTAINABILITY REPORT 2020 57
GRI 306 WASTE
GRI # DISCLOSURE TITLE REFERENCE/LOCATION
Explanation of the material topic, its Environment / Waste and Hazardous Waste, page 35 MANAGEMENT boundary, how the topic is managed, Environment / EHS and Sustainability Management APPROACH and mechanisms for evaluating the System, page 30 effectiveness of the company’s strategy
Waste generation and significant waste- 306-1 Environment / Waste and Hazardous Waste, page 35 related impacts
Management of significant waste-related 306-2 Environment / Waste and Hazardous Waste, page 35 impacts
306-3 Waste generated Environment / Waste and Hazardous Waste, page 36
306-4 Waste diverted from disposal Environment / Waste and Hazardous Waste, page 36
306-5 Waste directed to disposal Environment / Waste and Hazardous Waste, page 36
GRI 308 SUPPLER ENVIRONMENTAL ASSESSMENT
GRI # DISCLOSURE TITLE REFERENCE/LOCATION
Explanation of the material topic, its
MANAGEMENT boundary, how the topic is managed, Social / Supply Chain, page 45 APPROACH and mechanisms for evaluating the effectiveness of the company’s strategy APPROACH NARRATIVES GOVERNANCE ENVIRONMENTAL SOCIAL REFERENCE GRI/SASB INDEX L3HARRIS SUSTAINABILITY REPORT 2020 58
GRI SOCIAL DISCLOSURES
GRI 401 EMPLOYMENT
GRI # DISCLOSURE TITLE REFERENCE/LOCATION GRI # DISCLOSURE TITLE REFERENCE/LOCATION
Explanation of the material topic, its Worker training on occupational health 403-5 Social / Health and Safety, page 41 MANAGEMENT boundary, how the topic is managed, and safety Social / Human Capital, page 38 APPROACH and mechanisms for evaluating the effectiveness of the company’s strategy 403-6 Promotion of worker health Social / Health and Safety, page 42
New employee hires and employee Prevention and mitigation of occupational 401-1 Social / Human Capital, page 38 turnover 403-7 health and safety impacts directly linked Social / Health and Safety, page 42 by business relationships Benefits provided to full-time 401-2 employees that are not provided to Social / Human Capital, page 38 403-9 Work related injuries Social / Health and Safety, page 42 temporary or part-time employees
GRI 404 TRAINING AND EDUCATION GRI 403 OCCUPATIONAL HEALTH AND SAFETY GRI # DISCLOSURE TITLE REFERENCE/LOCATION GRI # DISCLOSURE TITLE REFERENCE/LOCATION Explanation of the material topic, its
Explanation of the material topic, its MANAGEMENT boundary, how the topic is managed, APPROACH Social / Human Capital, page 38 MANAGEMENT boundary, how the topic is managed, and mechanisms for evaluating the Social / Health and Safety, page 41 APPROACH and mechanisms for evaluating the effectiveness of the company’s strategy effectiveness of the company’s strategy Average hours of training per year per 404-1 Social / Human Capital, page 38 Occupational health and safety employee 403-1 Social / Health and Safety, page 41 management system Programs for upgrading employee skills 404-2 Social / Human Capital, page 39 Hazard identification, risk assessment, and transition assistance programs 403-2 Social / Health and Safety, page 41 and incident investigation Percentage of employees receiving 403-3 Occupational health services Social / Health and Safety, page 41 404-3 regular performance and career Social / Human Capital, page 39 development reviews Worker participation, consultation, and 403-4 communication on occupational health Social / Health and Safety, page 41 and safety APPROACH NARRATIVES GOVERNANCE ENVIRONMENTAL SOCIAL REFERENCE GRI/SASB INDEX L3HARRIS SUSTAINABILITY REPORT 2020 59
GRI 405 DIVERSITY AND EQUAL OPPORTUNITY GRI 415 PUBLIC POLICY
GRI # DISCLOSURE TITLE REFERENCE/LOCATION GRI # DISCLOSURE TITLE REFERENCE/LOCATION
Explanation of the material topic, its Explanation of the material topic, its
MANAGEMENT boundary, how the topic is managed, MANAGEMENT boundary, how the topic is managed, Social / Diversity and Inclusion, page 40 Governance / Lobbying and Political Advocacy, page 28 APPROACH and mechanisms for evaluating the APPROACH and mechanisms for evaluating the effectiveness of the company’s strategy effectiveness of the company’s strategy
Diversity of governance bodies and 415-1 Political contributions Governance / Lobbying and Political Advocacy, page 28 405-1 Social /Diversity and Inclusion, page 40 employees
GRI 412 HUMAN RIGHTS ASSESSMENT GRI 416 CUSTOMER HEALTH AND SAFETY
GRI # DISCLOSURE TITLE REFERENCE/LOCATION GRI # DISCLOSURE TITLE REFERENCE/LOCATION
Explanation of the material topic, its Explanation of the material topic, its
MANAGEMENT boundary, how the topic is managed, MANAGEMENT boundary, how the topic is managed, Social / Human Rights, page 43 Social / Product Safety and Quality, page 47 APPROACH and mechanisms for evaluating the APPROACH and mechanisms for evaluating the effectiveness of the company’s strategy effectiveness of the company’s strategy
GRI 413 LOCAL COMMUNITIES GRI 418 CUSTOMER PRIVACY
GRI # DISCLOSURE TITLE REFERENCE/LOCATION GRI # DISCLOSURE TITLE REFERENCE/LOCATION
Explanation of the material topic, its Explanation of the material topic, its
MANAGEMENT boundary, how the topic is managed, MANAGEMENT boundary, how the topic is managed, Social / Community, page 44 Social / Data Privacy and Cybersecurity, page 46 APPROACH and mechanisms for evaluating the APPROACH and mechanisms for evaluating the effectiveness of the company’s strategy effectiveness of the company’s strategy
Operations with local community Substantiated complaints concerning 413-1 engagement, impact assessment, and Social / Community, page 44 418-1 breaches of customer privacy and losses Social / Data Privacy and Cybersecurity, page 46 development programs of customer data APPROACH NARRATIVES GOVERNANCE ENVIRONMENTAL SOCIAL REFERENCE GRI/SASB INDEX L3HARRIS SUSTAINABILITY REPORT 2020 60
SASB DISCLOSURES
SASB # DISCLOSURE TITLE REFERENCE/LOCATION
000.A Production by Reportable Segment Approach / About L3Harris, page 06
000.B Number of Employees Approach / About L3Harris, page 06
510a.3 Business Ethics Governance / Business Ethics, page 25
130a.1 Energy Management Environment / Energy and Climate Change, page 32
230a.1 Data Security Social / Data Privacy and Cybersecurity, page 46
230a.2 Data Security Social / Data Privacy and Cybersecurity, page 46 This report contains forward-looking statements that are based L3HARRIS TECHNOLOGIES on the views of management regarding future events at the time 1025 WEST NASA BOULEVARD of publication of this report. These forward-looking statements, MELBOURNE, FLORIDA, 32919-0001 which include, but are not limited to: our plans, strategies and objectives for future operations; new products, services or U.S.: 1–800–442–7747 INTERNATIONAL: 1–321–727–9100 developments; future economic conditions; outlook; the effect of our acquisitions on our business; our growth potential; and the potential of the industries and markets we serve, are subject to known and unknown risks, uncertainties and other factors that may cause our actual results to be materially different from those expressed in or implied by each forward-looking statement. These risks, uncertainties and other factors are discussed in our Form 10-K for the fiscal year ended January 1, 2021.
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