Shareholders Send a Message to Lockheed Martin and RTX that Climate Readiness is Mission Readiness
BERKELEY, CALIFORNIA—MAY 7, 2024—Major defense contractors Lockheed Martin and RTX (formerly Raytheon Technologies) announced Annual General Meeting vote totals for two climate proposals filed by As You Sow. Thirty-two percent of Lockheed shareholders and 25% of Raytheon shareholders supported proposals requesting the companies disclose plans to reduce full value chain emissions to align with the Paris Agreement's 1.5°C goal, mirroring strong support for similar proposals in 2023.
Lockheed and RTX rank as two of the highest-emitting corporations globally, according to the CA100+, a global investor initiative with over 700 investors working to ensure that the world’s largest corporate emitters take necessary action on climate change.
Climate change contributes to geopolitical instability and national security risks. In 2022, the U.S. Army released its first-ever climate strategy, recognizing that climate readiness is mission readiness and that more sustainable energy choices result in greater autonomy, fewer logistical burdens, and more capable militaries. By announcing sustainable procurement rules, the Federal Government sent a strong signal to the market that it seeks high-performing companies that demonstrate resiliency and climate readiness in its contracts.
Despite advances by the U.S. military and the federal government in recognizing the need to achieve and maintain climate competitiveness, Lockheed and RTX have yet to address the risks and opportunities posed by climate change. Each company’s emissions reduction targets cover only a fraction of their total emissions, with over 90% of emissions resulting from purchased materials and use of products sold to major customers like the U.S. government.
“The U.S. military is committed to decarbonization, and this commitment extends to their contractors,” said Danielle Fugere, president and chief counsel at As You Sow. “Without climate-related financial disclosures, investors lack insight into how these companies are addressing major emissions that pose serious risks. Shareholders see these proposals as a critical step in remaining competitive in an evolving market and climate that prioritizes climate-readiness.”
Peers Airbus and Safran are already accelerating decarbonization strategies by setting SBTi-validated emission reduction targets across all emission scopes, including Scope 3. Lockheed and RTX risk diminishing their ability to compete with companies that can deliver products and services with lower GHG emissions that meet national and global decarbonization goals.
“Defense contractors need to stay on the leading edge of defense capabilities, including urgent low-carbon innovation,” said Diana Myers, climate and energy coordinator at As You Sow. “Shareholder support gives RTX and Lockheed additional impetus to act on climate change, which exacerbates geopolitical instability and national security risks.”
By embracing emissions reduction efforts across their value chains, Lockheed and RTX align with investor expectations and enhance their capacity to serve customers and further national defense priorities. Shareholders at Boeing will vote on a similar climate-focused proposal on May 17.
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As You Sow is the nation’s leading shareholder advocacy nonprofit, with a 30-year track record promoting environmental and social corporate responsibility and advancing values-aligned investing. Its issue areas include climate change, ocean plastics, pesticides, racial justice, workplace diversity, and executive compensation. Click here for As You Sow’s shareholder resolution tracker.