RESOLVED: Shareholders of Lockheed Martin request that the Board of Directors conduct an evaluation and issue a report within the next year (at reasonable cost, omitting proprietary information) describing if, and how, the company’s lobbying activities (direct and through trade associations and social welfare and nonprofit organizations) align with the Paris Climate Agreement’s goal of limiting average global warming to well below 2 degrees Celsius and how the company plans to mitigate risks presented by any misalignment.

SUPPORTING STATEMENT

According to the annual “Emissions Gap Report” issued by the United Nations Environment Programme (October 26, 2021), critical gaps remain between the commitments national governments have made and the actions required to prevent the worst effects of climate change. Companies have an important and constructive role to play in enabling policymakers to close these gaps.

Corporate lobbying activities that are inconsistent with meeting the goals of the Paris Agreement present regulatory, reputational, and legal risks to companies and investors and to the entire economy. Delays in implementation of the Paris Agreement increases the physical risks of climate change, poses a systemic risk to economic stability, and introduces uncertainty and volatility into our portfolios; Paris-aligned climate lobbying by companies and trade associations help to mitigate these risks.

As investors, we view fulfillment of the Paris Agreement’s goal—to hold the increase in the global average temperature to “well below” 2°C above preindustrial levels, and to pursue efforts to limit the temperature increase to 1.5°C—as an imperative. Of particular concern are trade associations that speak for business but, unfortunately,  often present forceful obstacles to progress in addressing the climate crisis.

In 2020 and 2021, seven companies received shareholder resolutions urging their boards to publish evaluations of their climate lobbying efforts ; six of those resolutions received a majority vote, demonstrating a tremendous show of investor interest in this issue. Numerous companies in both the U.S. and Europe have produced or agreed to issue reports evaluating their lobbying programs in the past two years.

Lockheed Martin presently provides insufficient information to help investors understand if or how our company works to ensure that its direct lobbying activities as well as its indirect lobbying, through membership organizations and trade associations, align with the Paris Agreement’s goals, and what management and the board do to address any misalignments found.  Although the company publicly discloses a list of its memberships to industry associations on its website, it does not discuss any direct engagement with them on climate change, their climate policy positions, or its role within each association, nor does the company disclose any actions taken in the event of misalignments on climate policy. Lockheed Martin is a member of the US Chamber of Commerce and National Association of Manufacturers, which have a history of actively and negatively lobbying US climate policy.