Corporate Footprint and Environmental Stewardship
We are committed to reducing our environmental impact.
At Leidos, we have eliminated under-performing real estate assets and improved operating efficiencies across our entire real estate portfolio, including through flexible workplace initiatives. These actions have been the largest contributing factor to reaching our Legacy 2020 greenhouse gas (GHG) reduction goal of 25% six years early in 2014. Between 2018 and 2019, we continued to reduce GHG emissions through real estate restructuring as well as through improved efficiency programs and use of renewable energy to power select facilities. We increased renewable energy purchases by nearly 500% between 2017 and 2018 through the use of Renewable Energy Certificates (RECs), and will continue to look for opportunities to increase our utilization of renewable energy. Our renewable purchased remained relatively consistent between 2018 and 2019. Continued improvements to the power grid (e.g. increased efficiency and use of cleaner fuels) have also contributed to GHG emission reductions. Leidos remains primarily a service-oriented company, with the majority of our real estate portfolio being commercial office space. Leidos continues to occupy lab, warehouse, and data center space that contributes to the company's environmental footprint. Our operations are lower impact in nature when compared to many of our competitors that specialize in heavy manufacturing, an emission-heavy business model.
Footprint at a Glance
The charts below summarize our environmental performance history. The charts include data from calendar years (CY) 2018 and 2019 to illustrate year-over-year performance improvements and from CY 2010 for comparison to our baseline. The primary metrics we track and manage, including energy and water use, waste generation, and GHG emissions but we also monitor transportation and material consumption.
Leidos consumed 702,234 GJ in buildings and fleet vehicles in 2019. This reflects a 1.4% improvement from 2018 and a 29% improvement from our 2010 baseline. In addition, we increased our use of renewable energy nearly six-fold from 2017 to 2018 and held steady in 2019 at about 22% of total electricity consumption.
In 2019, Leidos owned and leased buildings consumed 690,429 GJ, including 111,923 GJ of renewable electricity. Leidos began implementing energy savings opportunities identified in our Strategic Energy Management Plan in 2013, and we continue to drive savings through standardized operating procedures and design practices. Between 2018 and 2019, Leidos reduced building energy consumption by about 11,500 GJ, or about 1.6%, as a result of conservation and efficiency initiatives. Compared to our 2010 baseline, we have reduced building energy consumption by nearly 290,000 GJ, or about 30%. The majority of these savings were the result of strategies to utilize real estate more effectively, including disposing of underperforming or underutilized assets and implementing alternative workplace strategies. Other savings were realized through upgrades to HVAC controls and equipment and LED lighting retrofits at our facilities. These energy efficiency improvement have helped to reduce the average energy use intensity (EUI) across approximately 6.8 million square feet of Leidos-owned and leased floor space by 1.3% compared to 2018 and 11% since 2010.
Leidos views GHG emissions as an important metric and a good representation of our overall environmental impact and mitigation progress. Each year, GHG emissions from our global real estate portfolio, vehicle fleet, business travel, and employee commuting are quantified according to the GHG protocol and using industry-accepted GHG emission factors. Our annual GHG emissions are also verified according to ISO standards by an external third-party to confirm accuracy and completeness and to improve transparency.
Scope 1 & 2 GHG Emissions
In 2019, our market-based GHG emissions totaled approximately 55,272 metric tons of carbon dioxide equivalent (mtCO2e), a 6% reduction from 2018. Compared to our 2010 baseline, we have achieved an absolute GHG reduction of about 53%, which is more than double our 2020 goal of 25%.
In addition to absolute GHG emissions and reductions, Leidos tracks the GHG intensity of our revenue and our workforce. One of our objectives is to disassociate GHG emissions from revenue and employee count and we have consistently improved our performance relative to these metrics since 2010. In 2019, we reduced the GHG intensity of our revenue by 14% compared to 2018 and by 53% compared to 2010. Similarly, we reduced the GHG intensity of our workforce by 11% compared to 2018 and by 40% compared to 2010.
Some of the strategies used to reduce GHG emissions and intensities in 2019, included:
- Utilizing real estate effectively through the following strategies:
- Disposing of underperforming or underutilized assets
- Implementing alternative workplace strategies
- Reducing energy consumption and investing in renewable energy across the enterprise:
- Identifying and implementing energy efficiency projects
- Exploring opportunities for onsite renewable and alternative energy production
- Purchasing renewable energy credits through a proven and innovative energy auction conducted by the Leidos Energy Solutions Team
- Documenting our efforts to enhance technology and network support, including upgrades to more energy-efficient equipment (e.g., thin clients and blade servers) and cloud-based IT service delivery, enabling greater workplace flexibility
- Improving employee awareness of environmental sustainability and educating employees on how to improve workplace behavior to reduce wasteful energy consumption
Scope 3 Emissions
In 2017, Leidos began quantifying scope 3 GHG emissions from employee commuting and business travel to more completely understand our environmental impacts and to identify opportunities and evaluate existing initiatives to reduce GHG emissions. Scope 3 GHG emissions totaled about 89,511 mtCO2e in 2019, and were split about 60% from employee commuting and 40% from business travel (car, air, and rail travel). This reflects a slight decrease of about 1.5% compared to 2018. Note that scope 3 emissions for 2018 have been revised from previous disclosures to include scope 3 emissions from outside of the U.S.
Reducing the environmental impact of employee commuting is important to Leidos. We estimate that employees working at Leidos locations generated about 52,674 mtCO2e during their commutes in 2019. These estimates are based on Leidos employee counts and telework agreements, along with national commuting statistics from transportation surveys conducted in the U.S., the UK, and Australia.
We aim to reduce these emissions by continuing to encourage and support commuting alternatives to single- rider vehicle use. Our Commuter Incentive Program provides a financial incentive to employees who choose to commute by mass transit, carpools, vanpools, bike, or foot. Ridesharing and carpool matching are made available on our intranet to employees through local commuter web sites. Our transportation actions have been awarded twice with a Best Workplace for CommutersSM designation by the National Center for Transit Research.
Leidos also promotes flexible work environments to improve employee work-life balance, promote a high-performance culture, and help reduce the company's environmental impact by avoiding commute trips. When leasing new or renovating existing space, Leidos business units are encouraged to promote increased telework and desk-sharing (i.e., hoteling) options for employees. Our efforts aim to reduce employee commuting stress and emissions while also reducing the company's real estate footprint.
We estimate that business travel by air and rail generated about 27,750 mtCO2e and rental cars generated an additional 9,087 mtCO2e in 2019. These estimates are based on Leidos trip mileage data by mode and vehicle class and emission factors from the U.S. EPA.
We aim to reduce business travel emissions through more efficient business processes and enhanced communications technologies. Our headquarters in Reston, Virginia, has been outfitted with advanced technology to encourage video-conferencing and reduced business travel across the Enterprise. Technologies such as these have contributed to a decline of airline travel and rental car reservations across the company since 2011.
Material Use and Environmental Supplier Assessment
Leidos works closely with many of our vendors to support our business operations with environmentally friendly materials. Printing and paper use are daily impacts that we do our best to manage. Because these activities touch our employees on a daily basis, our procurement vendors have restricted the types of products that can be used in printing and paper use. When Leidos specifies new occupied space or updates existing space, we attempt to use the most environmentally friendly options possible. Our carpet and furniture vendors have been especially helpful by providing cost-competitive and environmentally friendly products.
Leidos understands that our value chain is one of the largest sources of impact on the environment. In 2019, we undertook planning to implement a supplier sustainability assessment process that is planned to launch in 2020. See the suppliers section of this report for more information on this program.
Water use at Leidos is mostly limited to typical commercial office consumption, which does not have a significant effect on national or local water sources. We monitor our water use and work to reduce its use through water-efficient technology, especially in water-sensitive climates like Southern California. For example, our San Diego campus taps into the city's reclaimed water distribution system to supply irrigation to our landscaping, a practice that conserves community drinking water resources.