Environment

Raytheon's sustainability program seeks to enhance the company's activities to protect our environment and conserve natural resources by engaging our employees, customers, suppliers and communities. We have established seven focus areas to provide structure and a road map for performance targets and goals:

– Energy efficiency
– Greenhouse gas reduction
– Waste reduction and recycling
– Water conservation
– Design for sustainability
– Eco-friendly procurement
– Innovative environmental solutions

Climate Change and Greenhouse Gas Emissions

Raytheon joined the U.S. Environmental Protection Agency's (EPA's) Climate Leaders® Program in 2002 and set its first formal goal for reducing greenhouse gas (GHG) emissions. The goal was to reduce GHG emissions by 33% between 2002 and 2009, normalized by revenue. The company achieved this reduction goal one year ahead of schedule, reducing emissions 38%, normalized by revenue, and was recognized by the EPA for this achievement. Raytheon has been reporting annual GHG emissions publicly in the Carbon Disclosure Project since 2003.

Continuing our commitment to reduce our carbon footprint, Raytheon worked with the EPA in 2009 to set another aggressive goal to reduce GHG emissions on an absolute basis (not normalized by revenue) by 10% between 2008 and 2015. As of the end of 2010, the company reduced absolute emissions 4.5% from 2008. Since 2002, Raytheon has reduced its absolute GHG emissions by 21%, preventing more than 570,000 metric tons of GHG emissions cumulatively. In 2010, the company's GHG emissions were 583,000 metric tons of carbon dioxide equivalents. Of these emissions, 83% were indirect emissions and only 17% were direct emissions. Raytheon has been ranked as the 75th greenest company in America in the second annual Newsweek® Magazine Green Rankings. The magazine evaluated the 500 largest publicly traded companies in America. Raytheon also finished in the No. 3 spot within the Transportation and Aerospace sector.

Pollution Prevention and Recycling

We continue our companywide effort to prevent pollution, preserve natural resources, and work toward zero waste generation and the recycling or reuse of waste. Since 1998, Raytheon has reduced its hazardous waste generation by 90%, normalized by revenue. In 2010 we generated approximately 879 tons of hazardous waste, of which 84% was recycled or otherwise diverted from landfills.

Since 1998, Raytheon has reduced the volume of solid waste generated by 58%, normalized by revenue. In 2010, we generated 19,446 tons of solid waste, of which 64% was recycled. In 2008, the company set a goal to reduce solid waste sent to landfills or incinerators by 25% between 2008 and 2013, normalized by revenue. As of the end of 2010, Raytheon has achieved a reduction of 17% normalized by revenue. We continue to expand our programs to make our dining facilities greener by using environmentally preferable dinnerware and also collect and divert waste food and consumables to off-site composting operations.

Water Conservation

Since our baseline year of 2008, the company has reduced water consumption by 15% saving more than 190 million gallons of potable water. The company is pursuing numerous water conservation measures such as low flow plumbing fixtures, cooling tower enhancements, process modifications, and landscaping irrigation changes. We currently use 54 million gallons of recycled water annually in our operations.

Environmentally Responsible Restoration

Raytheon invests significant resources in the responsible cleanup of past environmental contamination. Raytheon is involved in 41 active remediation sites, with a future combined cost estimate of $225 million (present value of $152 million before recovery). The 41 sites include 23 former and eight current operating locations, as well as 10 third-party landfill and recycling locations. Nine of the 41 sites are classified as Federal Superfund sites.