2012 Corporate Responsibility Report
The 2012 Raytheon Corporate Responsibility Report shows how our commitments in this area continue to strengthen and grow.
At Raytheon, sustainability is a shared responsibility. Our sustainability program seeks to protect our environment and conserve natural resources by engaging our employees, customers, suppliers and communities. Focus areas include energy efficiency, greenhouse gas reduction, waste reduction and recycling, water conservation, design for sustainability, eco-friendly supply chain, and environmental stewardship. Raytheon has set 15 long-term sustainability goals in a wide range of areas including operations, supply chain, engineering, EHS and IT. As discussed below, we are making substantial progress toward achieving the goals.
Raytheon’s environmental programs are supported by strong leadership engagement and governed by robust policies and practices, including our Environmental, Health and Safety Management System Policy (modeled after ISO 14001). This policy describes management leadership, goal setting, identification of hazards, roles and responsibilities, training, employee participation, tracking of metrics, investigation and corrective action, EHS auditing, and continuous improvement.
GREENHOUSE GAS EMISSIONS
Raytheon has been measuring and reducing its greenhouse gas (GHG) emissions for a decade. We joined the U.S. Environmental Protection Agency’s (EPA) voluntary Climate Leaders Program as a charter member in 2002. Since that time, we have reduced our emissions 34%, preventing 1 million metric tons of emissions cumulatively. We already have met two previous long-term GHG reduction goals, and our most recent goal achievement was recognized by EPA with the Excellence in Greenhouse Gas Management Award.
In 2012, Raytheon set the current goal to reduce GHG emissions 25% by 2015 from a 2008 baseline. As of the end of 2012, we had achieved a 21% reduction. Our GHG emissions in 2012 were 490,000 metric tons of carbon dioxide equivalents. Energy conservation and energy efficiency are the core strategies for reducing our carbon footprint because over 90% of our emissions are from Raytheon’s energy consumption, mainly electricity.
Energy consumption has dropped 11% since 2008, and has declined 19% since 2002, cumulatively reducing costs by $28 million since 2008 and $102 million since 2002. These reductions were achieved through educating and engaging our employees to reduce energy, implementing hundreds of energy-efficiency projects, and investing millions of dollars in equipment upgrades.
For the sixth consecutive year, the EPA awarded Raytheon the ENERGY STAR® Sustained Excellence Award for our successful strategies and programs to reduce energy consumption, improve energy efficiency and cut GHG emissions during 2012.
In 2012, we increased the amount of green renewable power that we buy or generate to over 43,000 megawatt hours, or 5.2% of our total electricity usage. This exceeds our 2015 goal of 5%. The company buys electricity from a landfill gas project in North Texas and from wind farms in the Midwest. We also generate solar power at our manufacturing site in Andover, Mass. In 2012, Raytheon was recognized by the EPA as a “Top Green Power Purchaser” among Fortune 500 companies.
INFORMATION (IT) ENERGY USE
Raytheon’s IT Sustainability program generates significant cost savings while delivering innovative solutions to support internal customers’ IT needs. We have achieved significant power reductions through server virtualization, energy-efficient data center design, adoption of cloud computing, and migration from desktops to smart mobile devices. Since 2010, Raytheon has reduced its power demand for data centers and computer networking facilities by 1.2 megawatts and nearly 5 megawatts since 2008, which is the equivalent to the power demand of 5,000 homes, and reduced annual expenses by more than $33 million. We are implementing virtual desktops and thin clients to further reduce the power requirements and reduce electronic waste. Raytheon is also using internal social media to engage our employees and strengthen its culture of sustainability.
Raytheon continues to manage responsibly end-of-life electronics (e-waste) focusing on environmental, health and safety, data integrity and prohibition of the export of e-waste to developing countries. We continue the first phase of our e-waste program to centralize the management of IT-managed domestic e-waste using a common, best practices-based approach.
Raytheon seeks to incorporate sustainability elements into the design, construction and operation of our facilities. The company utilizes the sustainability criteria and guidelines contained in the Leadership in Energy and Environmental Design (LEED) system, developed by the U.S. Green Building Council. Raytheon has been involved in LEED certifications at three new construction and four commercial interior projects and several additional projects are in process. Recent certifications were achieved in Raytheon leased buildings in Florida and Massachusetts, where we actively worked on the certification with the building owner and landlord.
LANDFILL AND INCINERATED WASTE
Between 2008 and 2012, Raytheon reduced the amount of waste it sent to landfills or incinerators by 41%. This reduction was achieved by focusing our efforts on source reduction, along with aggressively pursuing recycling options. During 2012, 17% of our waste was landfilled and 10% was incinerated. Many of our locations have diverted 100% of their wastes from landfills. In addition, we have reduced our solid wastes by 7.5% and hazardous wastes by 31% since 2008.
In 2012, 72% of all our solid waste was recycled, the highest recycling rate in the company’s history. Over 13,243 tons were recycled including: 3,073 tons of scrap metal, 2,621 tons of paper, 1,392 tons of wood, 940 tons of cardboard, 224 tons of plastic, 564 tons of electronic scrap, and 824 tons of composted materials.
FLEET FUEL EFFICIENCY
We continue to actively manage Raytheon’s enterprise-wide vehicle fleet to reduce fuel consumption and improve fuel efficiency. We are implementing an Enterprise Green Fleet Strategy which focuses on identifying opportunities to replace existing fleet vehicles with more efficient models and enhancing logistics systems to improve vehicle selection. Our Green Fleet Strategy also addresses expanding availability and use of alternative fuel, hybrid, and plug-in electric vehicles where supported by fueling/charging infrastructure. Since 2009, the average fuel efficiency of our fleet vehicles has improved 9%.
ELECTRONIC VEHICLE CHARGING
During 2012, the company installed seven electric vehicle charging stations for employees’ cars in California, Virginia and Massachusetts. The stations are on the ChargePoint® network, which allows for robust performance metrics on all the stations. Fees are charged to employees to cover the cost of electricity usage. Based on these pilot stations, we will evaluate additional station installations.
TRAVEL/SUPPLIER GHG EMISSIONS
We encourage our employees to travel more efficiently and to consider ways to reduce GHG emissions while on business travel, including by sharing rental cars with colleagues or selecting more eco-friendly flights. Additionally, employees can use a variety of electronic collaboration tools, such as video conferencing, online meetings and teleconferencing as alternatives to travel. We are tracking the GHG emissions associated with many of our logistic suppliers. Our GHG emissions from travel and from these logistic suppliers dropped 10% from 2011 to 2012.
Our Supply Chain function continues to focus on initiatives that will increase automation and digitization of our procurement processes. In 2012, supply chain’s automated transactions increased by 15%. In addition, we continue to develop and improve platforms and electronic tools that enable Raytheon to interact with our suppliers electronically.
We increased the amount of eco-friendly office supplies we purchased in 2012 to 18% of the total. In addition, we reduced small-dollar orders of office supplies by 11% in 2012, reducing packaging waste and transportation costs.
RECYCLED PAPER USE
Since 2011, Raytheon has significantly increased its use of recycled paper in printers and copiers from 36% in 2011 to 68% in 2012 through a concerted effort to buy more eco-friendly office supplies. We have now standardized around 30% post-consumer content paper, and we are leveraging our paper buying to minimize cost impacts.
Raytheon’s supplier sustainability initiative seeks to expand our understanding and implementation of sustainability efforts at our suppliers. Starting with the source selection process, we request and consider information on suppliers’ sustainability efforts when conducting many of our supplier sourcing activities. Our enterprise strategic sourcing teams are incorporating sustainability language into enterprise agreements and will continue to incorporate sustainability metrics and reporting in key supplier business reviews.
We have reduced water use by 22% from 2008, exceeding our initial 10% reduction goal. We achieved these reductions through the use of 29 million gallons of recycled water, updated cooling towers, low-flow fixtures and innovative landscaping and irrigation techniques. We set a second, more aggressive goal last year to reduce water use by 25% between 2008 and 2015. In 2012, we used 588 million gallons of water at our locations, which is 22% less than our 2008 consumption.
GLOBAL SUBSTANCES PROGRAM
Through our Global Substances Program, Raytheon collaborates across the enterprise and with industry partners for product stewardship, sustainable engineering, and materials used in manufacturing activities. This cross-functional program addresses substance management and compliance, alternatives implementation, and reliable and responsible sources of supply. We have established mechanisms for product and process risk assessments, and are developing systems to improve automated capabilities for compliance.
The Global Substances Program also manages Raytheon’s “Design for Sustainability” goals on reducing and eliminating materials of concern in our products and improving and deploying a Product Material Content system to identify and track substances in our products. Addressing regulatory and customer requirements at the early stages of product design and development furthers environmental stewardship by reducing hazardous material use, increases compliance, and reduces costs. This systems capability approach enables greater opportunities for global substance risk management, product stewardship and compliance assurance throughout the entire product lifecycle.
ENVIRONMENTALLY RESPONSIBLE RESTORATION
Raytheon invests significant resources in the responsible cleanup of past environmental contamination and in 2012 spent $17 million on environmental remediation. Raytheon is involved in 41 active remediation sites, with a future combined cost estimate of $202 million (present value of $131 million before recovery). The 41 sites include 22 former and 10 current operating locations, as well as nine third-party landfill and recycling locations. Nine of the 41 sites are classified as Federal Superfund sites.