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 2017 and 2018, we continued to reduce GHG emissions through real estate restructuring as well as through improved efficiency programs and increased use of renewable energy to power our owned facilities. We increased renewable energy purchases by nearly 500% between 2017 and 2018 through the use of Renewable Energy Credits, and will continue to look for opportunities to increase our consumption of renewable energy. 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) 2017 and 2018 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.
In 2013, Leidos began implementing energy savings opportunities identified in our Strategic Energy Management Plan. We continue to drive savings through standardized operating procedures and design practices. Within the organization, Leidos consumed 719,131 GJ in 2018. This reflects a 5% improvement from 2017. In addition, Leidos increased our use of renewable energy nearly six-fold in 2018. The table below details energy consumption for 2018 and changes from 2017 by energy type.
Energy consumption within the organization
|PERCENT CHANGE (%)|
|Non-renewable Energy||995, 318||732,704||596,447||-40%||-19%|
|Other Stationary Fuels||1,973||486||428||-78%||-12%|
Note: Leidos did not purchase any heating, cooling, or steam or sell energy of any type in 2017
The average energy intensity of Leidos-occupied floor space was 104.1 MJ/ft2 in 2018. This intensity is based on total energy consumption within the organization for all applicable stationary fuels across approximately 6.8 million square feet of Leidos owned and leased floor space. Though this is slightly higher than in 2017, we have consistently reduced the energy intensity of our buildings since our 2010 base year as displayed in the table below. Our increase in intensity in 2018 was a result of large reductions in our total floor space, as we reduced our total square footage by roughly 500,000 ft2 in 2018.
Energy intensity of buildings
|METRIC||2010||2017||2018||PERCENT CHANGE (%)|
|Building Energy (GJ)||980,171||742,035||708,260||-28%||-5%|
|Floor Area (ft2)||8,593,523||7,263,807||6,804,316||-21%||-6%|
|Energy Intensity (MJ/ft2)||114.1||102.2||104.1||-9%||2%|
In 2018, Leidos reduced energy consumption within the organization by about 34,000GJ as a direct result of conservation and efficiency initiatives. The majority of these savings were the result of strategies to utilize real estate more effectively, including disposing of underperforming or underutilized assets, improving the density of existing space, and implementing alternative workplace strategies. These savings occurred for grid electricity and natural gas and were estimated as being proportional to the associated reduction in Leidos-occupied floor space. Additional energy savings were realized through HVAC system upgrades implemented at two Leidos facilities, as well as a lighting upgrade at another facility.
Standards, Methodologies, and Assumptions Used for Energy Calculations
Leidos followed the World Resource Institute and the World Business Council for Sustainable Development (WRI/WBCSD) GHG Protocol Corporate Accounting and Reporting Standard (Revised Edition) and The Climate Registry (TCR) General Reporting Protocol v2.1 for data collection and calculation methods, assumptions, and conversion factors.
- For owned buildings and leased buildings where Leidos is responsible for paying utility bills, electricity and natural gas data were collected from utility billing information.
- For leased buildings where Leidos is not responsible for paying electricity bills, electricity consumption was estimated using the average intensity method described in The Climate Registry’s (TCR) General Reporting Protocol v2.1. This method multiplies the floor area of each lease by an assumed electricity intensity factor based on building type from the U.S. Energy Information Administration’s (EIA) Commercial Buildings Energy Consumption Survey for 2012 (CBECS 2012). The resulting consumption was prorated based on the fraction of the year for which Leidos occupied each lease.
- For leased buildings where Leidos is not responsible for paying natural gas bills, natural gas consumption was estimated using the average intensity method described in The Climate Registry’s (TCR) General Reporting Protocol v2.1. This method multiplies the floor area of each lease by an assumed natural gas intensity factor based on building type from the U.S. Energy Information Administration’s (EIA) Commercial Buildings Energy Consumption Survey for 2012 (CBECS 2012). The resulting consumption was prorated based on the fraction of the year for which Leidos occupied each lease.
- Diesel fuel use for generators at owned facilities was estimated by multiplying the number of hours each generator was in use during the calendar year by the fuel consumption rate (gallons per hour) specific to each generator model.
- Leidos-occupied floor area is reported as an annual equivalent value. The floor area of each lease is prorated according the fraction of the year each lease was active. For example, a 10,000 ft2 office lease occupied by Leidos for half the year is equivalent to 5,000 ft2 occupied for the entire year.
- Leidos vehicle data is taken from insurance policy data that is updated on a quarterly basis.
- Fuel consumption was prorated based on the disposal date of the vehicle. If the vehicle did not have a disposal date, it was conservatively assumed to have been used for the entire calendar year.
Base year and rationale: Leidos utilizes a 2010 base year, because it was the year that Leidos began quantifying and reporting GHG emissions. Since most of our GHG emissions result from energy, 2010 is a logical base year for measuring energy savings also. In addition to measuring against the base year, Leidos finds it informative to measure year-over-year performance improvements.
Leidos views GHG emissions as an important metric that is a good representation of our overall environmental impact and mitigation progress. Each year, the GHG emissions from our global real estate portfolio and vehicle fleet are measured, verified by a third party, and publically reported.
Leidos did not make any significant alterations to our GHG emissions methodology in 2018.
GHG Inventory Overview
|Reporting Requirement||Direct GHG Emissions (Scope 1)||Energy Indirect GHG Emissions (Scope 2)||Other Indirect GHG Emissions (Scope 3)|
|2018 GHG Emissions (MTCO2e)1||2,527||58,270||85,501|
|Gases included||CO2, CH4, N2O, HFCs, PFCs, NF3||CO2, CH4, N2O, HFCs, PFCs, NF3||CO2, CH4, N2O, HFCs, PFCs, NF3|
|Base Year Emission (MTCO2e)2||2,847||114,136||n/a|
|Base Year Rationale||Inaugural year for developing and reporting GHG inventory||First full year data available|
|Standard, Methodologies and Assumptions||World Resource Institute and the World Business Council for Sustainable Development (WRI/WBCSD) GHG Protocol Corporate Accounting and Reporting Standard (Revised Edition); The Climate Registry (TCR) General Reporting Protocol v2.1 and General Verification Protocol||World Resource Institute and the World Business Council for Sustainable Development (WRI/WBCSD) Corporate Value Chain (Scope 3) Accounting and Reporting Standard; The Climate Registry (TCR) General Verification Protocol|
|Emission Factors||US Environmental Protection Agency (EPA) Center for Corporate Climate Leadership Emission Factors for Greenhouse Gas Inventories (updated March 2018); US EPA eGRID2016; The Climate Registry (TCR) Default Emission Factors for Reporting in 2018|
|Global Warming Potentials (GWP)||Intergovernmental Panel on Climate Change (IPCC) Fifth Assessment (AR5)|
|Other Assumptions||US Energy Information Administration (EIA) Commercial Building Energy Consumption Survey - 2012 (CBECS 2012); Natural Resources Canada, Survey of Commercial and Institutional Building Energy Use – Buildings 2009||Federal Highway Administration (FHWA), 2017 National Household Travel Survey (NHTS), Average Person Trip Length (National level); US Census Bureau, 2016 American Community Survey (1-year estimates), Means Of Transportation To Work For Workplace Geography|
|Consolidation Approach||Operational Control|
1 Reported 2017 GHG emissions have been third-party verified.
2 2010 base year GHG emissions have been recalculated to reflect the current organizational structure and third-party verified.
Scope 1 & 2 GHG Emissions
In 2018, Leidos achieved an overall reduction in scope 1&2 GHG emissions of 14% compared to 2017 and 48% compared to our 2010 baseline. The average GHG emissions intensity of Leidos-occupied floor space was 8.5 mtCO2e/1,000 ft2 in 2018 and 13% lower than 2017. Since our 2010 base year, we have reduced the energy intensity of our real estate portfolio by 37%.
GHG emissions intensity of buildings
|2010||2016||2017||2018||PERCENT CHANGE (%)|
The types of GHG emissions included in the intensity ratio are scope 1 GHG emissions from natural gas combustion for heating, diesel fuel combustion in generators, and fugitive refrigerants from owned large air conditioning and refrigeration equipment. Also included are market-based Scope 2 GHG emissions from purchased electricity and natural gas used for heating provided by landlords in full service leases. Scope 1 GHG emissions from fleet vehicles and Scope 3 GHG emissions from employee commuting and business travel are not captured in the emissions intensity ratio, since the ratio is specific to buildings.
Leidos pursued several strategies to achieve GHG reductions in 2017, including:
- Utilizing real estate effectively through the following strategies:
- Disposing of underperforming or underutilized assets
- Improving the density of existing space
- 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
Through these initiatives, Leidos reduced scope 1 and 2 GHG emissions (all gases) by 10,171 mtCO2e compared to 2017. GHG reductions from strategies to improve real estate effectiveness were estimated to be proportional to the reduction of Leidos-occupied floor area from 2017 to 2018 (-6.3%). GHG reductions from energy efficiency improvements were determined by multiplying the projected annual electricity savings (in kWh) from efficiency gains of each project by the eGRID emission factors for the sub-region in which each project was completed.
Leidos increased zero-emitting renewable electricity purchases from 5,638 MWh in 2016 to 33,343 MWh in 2018. This increase reduced scope 2 GHG emissions from purchased electricity by over 6,000 mtCO2e compared to 2017. In total, renewable energy purchases in 2018 avoided nearly 7,000 mtCO2e of compared to the 2010 base year. These GHG reductions were determined by multiplying renewable purchases (in kWh) by the eGRID emission factors for the sub-region in which the purchasing facilities operate.
Scope 3 GHG 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 85,500 mtCO2e in 2018, and were split almost evenly between employee commuting and combined business travel (car, air, and rail travel). This is a marked increased from 2017, as much of our 2017 data was unavailable due to integration of differing systems after our 2016 merger with Lockheed Martin IS&GS.
Reducing the environmental impact of employee commuting is important to Leidos. We estimate that employees working at Leidos locations generated about 46,000 mtCO2e during their commutes. These estimates are based on Leidos employee counts and telework agreements along with data on commute modes by state from the American Community Survey (ACS) and national average commute distances by mode from the National Household Transportation Survey (NHTS).
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 shared desking options for employees. Our efforts aim to reduce employee commuting stress and emissions while also reducing the company's real estate footprint.
Business travel, both internally and in support of customer requirements, makes a considerable contribution to our environmental impact. We estimate that business travel by air and rail generated about 27,800 mtCO2e and rental cars generated an additional 11,000 mtCO2e in 2018. These estimates are based on Leidos trip mileage data by mode and vehicle class and emission factors from the U.S. EPA Emission Factors Hub.
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 steady 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.
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.