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ESG & Risk Oversight

Sustainability is a critical business imperative. Accountability for our performance begins with our board and our CEO, who provide governance and oversight over our strategy, operations, and management. The Executive Leadership Team and the Sustainability Working Group (SWG) oversee ESG programs and aim to strengthen ESG practices across the enterprise to promote responsible and sustainable growth. The SWG comprises senior leaders from across Leidos, including customer-facing sustainability experts.

The ESG team supports the SWG with cross-company alignment and integration of Next Level Leidos goals, implements ESG initiatives, and measures the progress made toward enterprise-wide ESG targets.

 

ESG Oversight

The Board of Directors Role in ESG and Risk

Our Board of Directors regularly review with management ESG issues that may significantly impact our business operations, reputation or relations with employees, customers, supplier partners, stockholders and other stakeholders, at least quarterly. 

Transparency and Accountability

The Leidos Board of Directors believes that transparency and accountability are a critical part of our ESG strategy. Leidos publishes reports annually in accordance with the latest GRI™ Sustainability Reporting Standards and strives for continuous improvement, alignment with industry best practices and leadership in corporate sustainability and responsibility. We voluntarily provide and publish updates in our annual Sustainability Report; our Diversity, Equity, and Inclusion (DEI) Report; and our CDP disclosure. We also disclose ESG-related data in our Annual Report on Form 10-K and our proxy statement. The Company periodically re-evaluates and updates its sustainability and corporate responsibility programs and how it shares progress with stakeholders.

  • In 2019, Leidos produced our first SASB Disclosure Supplement.
  • In 2021, Leidos partnered with outside experts to conduct a formal ESG assessment, including a stakeholder engagement initiative. This engagement, which took place alongside an analysis of internal and external trends and alignment with business priorities, helped us develop our Next Level Leidos ESG Goals. The goals form the basis of the company’s SMP and drive progress in priority areas.
  • In 2023, Leidos will publish our 14th Annual Sustainability Report covering the calendar year 2022, and integrating our GRI™ Index and SASB Standards into one document to provide a comprehensive view of corporate practices in this area.  
  • Leidos publishes our annual EEO-1 Report, which includes information regarding our workforce diversity.

 

Risk Oversight

As part of its oversight function, the Board and its committees monitor risk as part of their regular deliberations throughout the year. When granting authority to management, approving strategies, making decisions and receiving management reports, the Board considers, among other things, the risks facing the Company. 

The committees coordinate among each other as necessary to support optimal oversight of risks; each Committee reports its activities to the Board and facilitates discussions among directors. Company management also maintains an Enterprise Risk Management Committee, comprised of the Chief Executive Officer and senior executives that, among other things, establishes the overall corporate risk strategy and reviews policies, systems, processes and training with the goal of identifying and addressing appropriate risk matters within the company. This management committee reports regularly to the Audit and Finance Committee and annually to the full Board on its activities and findings, highlighting the key risks we face and management’s actions to address those risks.

Cybersecurity and Related Risks

Information security is critical to maintaining the trust of our customers and business partners, and we are committed to mitigating risks and protecting our data and systems. We maintain comprehensive technologies and programs intended to ensure our systems are effective and prepared for data privacy and cybersecurity risks, including regular oversight of our programs for security monitoring for internal and external threats to safeguard the confidentiality, availability, and integrity of our information assets. We regularly perform evaluations of our security program and continue to invest in our capabilities to keep our customers, partners, and information assets safe. As a government contractor and a provider of information technology services, we are entrusted with highly sensitive information, and we are continuously exposed to unauthorized attempts to compromise this information through cyberattacks, the risk of insider threats and other information security risks.

Environmental Matters

We have established a management-level SWG, comprised of senior leaders from across the Company, including customer-facing sustainability experts. The SWG is actively engaged in overseeing ESG programs and strengthening ESG practices to support responsible and sustainable growth. The SWG conducts biannual reviews of climate-related risks in accordance with the Task Force on Climate-related Financial Disclosures (TCFD) best practices. The SWG also conducts scenario analysis into the Leidos climate-related risk assessment process, alongside members of the Company’s enterprise risk management team. Climate-related operational opportunities are reviewed biannually and managed by the SWG in parallel with outside experts. Climate-related business opportunities are generally managed by the business lines at least at the business group-level and are reviewed quarterly.

Please see the Leidos 2023 Proxy Statement for additional Governance information.