{"id":10293,"date":"2016-11-04T00:28:57","date_gmt":"2016-11-04T04:28:57","guid":{"rendered":"https:\/\/digital.hbs.edu\/platform-rctom\/submission\/genius-or-reckless-lockheed-martins-venture-to-climate-change\/"},"modified":"2016-11-04T15:36:32","modified_gmt":"2016-11-04T19:36:32","slug":"genius-or-reckless-lockheed-martins-venture-to-climate-change","status":"publish","type":"hck-submission","link":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/genius-or-reckless-lockheed-martins-venture-to-climate-change\/","title":{"rendered":"Genius or Reckless: Lockheed Martin\u2019s Venture to Climate Change"},"content":{"rendered":"

Genius or Reckless: Lockheed Martin\u2019s Venture to Climate Change<\/strong><\/p>\n

\u201cAs we consume more than ever, climate change is accelerating as well\u2026In fact, we know that 2014 was the hottest year in human history. These pressures combine to create real threats to security and stability around the world.\u201d<\/em><\/p>\n

–Marillyn Hewson, Chief Executive Officer<\/strong> of Lockheed Martin <\/strong>[1]<\/p>\n

\"lm1\"<\/a><\/p>\n

Despite climate change emerging as one of the greatest threats of this generation, Ms. Hewson, as the CEO of one of the most globally renowned defense contractors, is still being criticized for having an Al Gore-like focus on the topic. [2] Beginning as an aerospace company in the early 1900\u2019s, Lockheed Martin [LM] arose from the 20th<\/sup> Century as an international leader in security, innovation, and aerospace. Based out of Maryland, the company employs over 98,000 people, and has over $46 billion in sales with the U.S. Department of Defense being their primary source of revenue. They have made a name for themselves when it comes to aeronautics, missiles and fire control, rotary and mission systems, space systems, and most recently, energy. [3]<\/p>\n

 <\/p>\n

A Leader in Sustainability<\/em><\/strong><\/p>\n

Long before the leadership of the federal government addressed climate change, LM paved a path towards environmental sustainability. The future drives every aspect of LM’s strategy, and Ms. Hewson is quick to\u00a0remind anyone that listens that the only future\u00a0that exists\u00a0is one with meaningful climate change. In 2007, the company published the \u201cGo Green 2020 Goals.\u201d The campaign sought to \u201creduce carbon emissions, energy, water, and waste. [4]\u201d Perhaps it was anticipated, but two years after, President Obama established similar goals for the federal government and those they do business with in Executive Order 13423 [5].<\/p>\n

Over the past ten years, both LM and the federal government have remained committed to the original goals set for 2020. While President Obama worked to increase the scope and depth of his executive order on climate change, eventually signing an extension with Executive Order 13514 [6], LM diligently worked to remain at the forefront of environmental innovation. Exhibit 1<\/strong> outlines their holistic approach to sustainability, extending far beyond their original environmental goals of 2007.\u00a0It was not long before they began to see the fruits of their investments. In 2014, they reached UK\u2019s Carbon Reduction Commitment and by 2015, they were well on their way to reaching their 2020 pledge [7] (Exhibit 2 &4<\/strong>).<\/p>\n

\u00a0<\/strong>\u00a0\u00a0\u00a0\u00a0 Exhibit 1:<\/strong><\/p>\n

\"1472761661619\"<\/a><\/p>\n

Source: Company Website [1]<\/p>\n

\u00a0\u00a0\u00a0\u00a0 Exhibit 2:<\/strong><\/p>\n

\"lm3\"<\/a><\/p>\n

Source: Company Website [2]<\/p>\n

 <\/p>\n

Bold Movements into Energy<\/em><\/strong><\/p>\n

Though they were ahead of the curve when it came to regulation, LM was in the market of innovating future technologies and there was a clear necessity for stronger and less costly methods of capturing sustainable energy. Not only did such investments make sense from a value perspective, but they also seemed like a clear path to riding out the volatility of the U.S. Military\u2019s downsizing and sequestration. Despite the clear dichotomy of skills required to be successful in the defense and energy industry, most other companies within the defense industry followed suit, but none over the past five years remained steadfast in their commitment like LM.<\/p>\n

From harvesting ocean waves and temperature, to producing energy from waste, LM has tried it all. In China and Scotland, the company committed to massive projects that aimed to capture the power of both\u00a0oceanic tides and temperatures. Most recently, the company has developed an \u201cAdvanced Gasification\u201d process, which converts waste into useable energy (Exhibit 3). Though successful on these projects, such success did not without risk. Off the coast of Australia, the company paired with Ocean Power Technologies to develop the \u201clargest energy wave project\u201d in existence. Unfortunately, after only six months of work, the project proved unprofitable [8].<\/p>\n

\u00a0\u00a0\u00a0\u00a0 Exhibit 3:<\/strong><\/p>\n

\"lm4\"<\/a><\/p>\n

Source: Company Website [3]<\/p>\n

\u00a0<\/em><\/strong><\/p>\n

Their innovative reach continues into nuclear energy as well. Last year, LM committed to producing a vehicle-sized nuclear fusion reactor within the next ten years [9]. Such technology, when developed, will transform the modern day concept of energy. Such innovation is exactly what the world needs. Now that a breakthrough in design has been achieved, it is essential that LM focus their energy on fully developing and scaling this technology. Though they have proven successful in other fields of energy production as well, their unique success in the nuclear realm will undoubtedly benefit all.<\/p>\n

 <\/p>\n

Conclusion<\/em><\/strong><\/p>\n

While some competitors and investors may label Lockheed Martin\u2019s commitment to energy as extensive and perhaps reckless, few can underestimate the value that they could provide if they get it right. It is important for all to recognize that it is through private sector companies, like LM, that true and impactful climate change will occur. The stakes are high and the risk and capital required for success is great; luckily, LM is positioned as a company that prides itself on large-scale innovation and tremendous investment. They must think big and take the risks that others will not.\u00a0 Compact fusion reactors must be the beginning, and full-scale sustainability must\u00a0remain the goal.<\/p>\n

\u00a0\u00a0\u00a0\u00a0 Exhibit 4:<\/strong><\/p>\n

\"lm5\"<\/a><\/p>\n

Source: Company Website [4]<\/p>\n

\u00a0<\/strong><\/p>\n

[Word Count: 792]<\/strong><\/p>\n

End Notes<\/strong><\/p>\n

[1] Christian Davenport and Amrita Jayakumar, \u201cFrom Fighter Jets to Fish Farms: Why Lockheed Martin is Taking on Climate Change,\u201d Washington Post<\/em>, 2015, https:\/\/www.washingtonpost.com\/ news\/business\/wp\/2015\/03\/20 \/from- fighter-jets-to-fish-farms-why-lockheed-martin-is-taking-on-climate-change\/, accessed November 2016.<\/p>\n

[2] Ibid.<\/em><\/p>\n

[3] Lockheed Martin, \u201cWho We Are,\u201d http:\/\/www.lockheedmartin.com\/us\/who-we-are.html, accessed November 2016.<\/p>\n

[4] Lockheed Martin, \u201cLockheed Martin Completes Integration of Energy Portfolio,\u201d March 2016, http:\/\/www.lockheedmartin.com\/us\/news\/press-releases\/2016\/march\/mfc-031516-lockheed-martin-completes-integration-energy-portfolio.html, accessed November 2016.<\/p>\n

[5] Fed Center, \u201cEO 13514,\u201d https:\/\/www.fedcenter.gov\/programs\/eo13514\/, accessed November 2016.<\/p>\n

[6] Ibid.<\/em><\/p>\n

[7] Lockheed Martin, \u201cLockheed Martin Recognized by Carbon Disclosure Project\u201d http:\/\/lockheedmartin.com \/us\/news\/press-releases\/2015\/november\/lockheed-martin-recognized-by-carbon-disclosure-project.html<\/u>, accessed November 2016.<\/p>\n

[8] Christian Davenport and Amrita Jayakumar, \u201cFrom Fighter Jets to Fish Farms: Why Lockheed Martin is Taking on Climate Change.\u201d<\/p>\n

[9] Ibid.<\/em><\/p>\n

Exhibits<\/strong><\/p>\n

[1] Lockheed Martin, \u201cWho We Are.\u201d<\/p>\n

[2]Lockheed Martin, \u201cSustainability Management Plan,\u201d http:\/\/www.lockheedmartin.com\/content\/dam \/lockheed\/data\/corporate\/documents\/Sustainability\/sustainability-management-plan-2016.pdf, accessed November 2016.<\/p>\n

[3] Lockheed Martin, \u201cWho We Are.\u201d<\/p>\n

[4] Lockheed Martin, \u201cLockheed Martin\u2019s Alignment with U.S. Executive Order 13693,\u201d 2016, http:\/\/www.lockheedmartin.com\/content\/dam\/lockheed\/data\/corporate\/documents\/eesh\/eo-scorecard-eesh-2016.pdf, accessed November 2016.<\/p>\n","protected":false},"excerpt":{"rendered":"

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