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 were the largest contributing factor to achieving a 58% reduction in scope 1&2 greenhouse gas (GHG) emissions between 2010 and 2020 and far exceeding our 25% legacy target.1 We are also proud to have achieved year-over-year reductions in each year throughout the 2010-2020 target period. We increased renewable energy purchases by nearly 500% between 2017 and 2018 through the use of Renewable Energy Certificates (RECs) and we continue to look for opportunities to increase our utilization of renewable energy going forward.
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.
Footprint at a Glance
The charts below summarize our environmental performance history and include data from calendar years (CY) 2019 and 2020 to illustrate year-over-year performance improvements, and from CY 2010 for comparison to our baseline.
1Reported scope 1&2 GHG emissions and reductions are preliminary and are pending third-party verification. These figures also cover legacy Leidos assets only to align with the organizational boundary associated with our legacy 25% GHG reduction target for 2020. We are working to update our organizational boundary and GHG inventories to include recent acquisitions and divestitures.
Building Energy Consumption
At Leidos, buildings account for the majority of our energy consumption and scope 1&2 emissions. As a result, we carefully manage our real estate portfolio and continuously look for opportunities to improve efficiency and utilize real estate more effectively. We continue to drive savings by implementing energy projects and alternative workplace strategies, disposing underperforming or underutilized assets, and standardizing operating procedures and design practices.
In 2020, Leidos owned and leased buildings consumed 619 TJ, including 66 TJ of renewable electricity via REC purchases. This amounts to a 10% improvement from 2019 and a 37% improvement from our 2010 baseline. Reduced building occupancy during the COVID pandemic was the primary source of energy reductions in 2020, however, energy efficiency and conservation projects also contributed to savings. We implemented 13 energy projects to upgrade HVAC and lighting systems with estimated annual savings of over 660 megawatt-hours (MWh). Projects like these helped us to reduce the energy intensity of our real estate portfolio 14% year-over-year and 23% since 2010. Our utilization of renewable energy decreased from 22% of total electricity consumption in 2019 to about 15% in 2020 because our largest facility and largest source of RECs was eliminated from the portfolio during 2020. We are currently evaluating new strategies and opportunities across the portfolio in order to drive up renewable energy utilization and surpass past achievements.
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 2020, our scope 1&2 market-based GHG emissions totaled approximately 48,550 metric tons of carbon dioxide equivalent (mtCO2e), a 12% reduction from 2019. Compared to our 2010 baseline, we have achieved an absolute GHG reduction of about 58%, which is more than double our 2020 goal of 25%. Electricity and natural gas use plus imported heat in our full service leases account for over 97% of our scope 1&2 emissions.
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 2017. In 2020, we reduced the GHG intensity of our revenue by 12% compared to 2019. Similarly, we reduced the GHG intensity of our workforce by 19% compared to 2019.
Some of the strategies used to reduce GHG emissions and intensities in 2020, included:
- Utilizing real estate effectively by disposing of underperforming or underutilized assets and implementing alternative workplace strategies
- Reducing fossil-fueled energy consumption by identifying and implementing energy efficiency projects, exploring opportunities for onsite renewable and alternative energy production, and purchasing RECs through a proven and innovative energy auction
- Educating our employees on environmental sustainability and improving workplace behavior to reduce wasteful energy consumption
- Enhancing 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
- Enhancing technology and network support, including data center consolidation, upgrades to more energy-efficient equipment and cloud migration:
- Planning and delivering efficient IT services globally. Leidos has executed a multi-year data-center consolidation plan that includes hyper-converged compute and storage, allowing for a smaller overall footprint of resources. As part of this strategy, we partner with leading data-center hosting providers to bring the latest advances in power, cooling and energy management to the Leidos equation. This allows us to converge legacy environments that host both internal and mission support workloads into modern facilities creating a win-win scenario for both the Leidos enterprise and our customers. This approach reduces operational costs while continuing to drive down overall environmental resource needs.
- In addition to efficiencies in our physical hosting environments, we have migrated over 100 internal applications for delivery by cloud service providers while providing an internal ‘Enterprise Cloud Management” (ECM) capability that streamlines these services for our internal and external customers. These innovations facilitate standard enterprise class services that would otherwise have been duplicated across hundreds of environments. This approach, coupled with a focus on the adoption of Software as a Service (SaaS) for major enterprise IT services, continues to drive our physical compute footprint to a minimum.
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 to reduce our indirect GHG emissions. Scope 3 GHG emissions totaled about 45,505 mtC02e in 2020, and were split about 62% from employee commuting and 38% from business travel (car, air, and rail travel). This reflects a 49% decrease from 2019 due largely to restricted travel and increased virtual meetings during the COVID pandemic. We continue to develop and improve our scope 3 data sources and are working to expand the boundary of our of our scope 3 inventory.
Waste Diversion and Reduction
Leidos works closely with many of our vendors to support our business operations with environmentally friendly materials. We seek to minimize our consumption of natural resources through our procurement and operations. When Leidos occupies new space, updates existing space, or decommissions locations, we attempt to use the most environmentally friendly options possible. We work to reuse and recycle where all opportunities exist such as managing our e-waste, water and office waste.
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 that launched in 2020. See the Supplier and Small Business section of this report for more information.
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.