SUSTAINABILITY

SERVING OUR SHARED FUTURE

At HII, we are committed to living our values in every aspect of how we do business – in serving and championing the success of our people and communities, the security of our nation and environment, and the future of freedom worldwide. These commitments honor our interconnectedness – with our employees, customers, shareholders, suppliers, and communities. They also reflect our deep sense of responsibility to understand and anticipate our stakeholders’ needs and priorities in service of our shared future.

By taking meaningful steps to foresee risks and opportunities ahead, and by positioning the company to navigate them, we nourish and protect the strong, stable, resilient relationships on which HII’s health and growth into the future depend. As the company grows, innovation develops, and our capabilities continue to evolve and expand to serve customer needs, the trust and service at the heart of our company remain steadfast.

Our culture of engagement and respect, continuous improvement to drive performance and safety, and our commitment to uphold with integrity our highest responsibilities to employees, customers, and shareholders keeps us on a steady course.

Our Sustainability Commitments

In 2023, we set ten sustainability commitments to guide our sustainability strategy. These commitments were developed by four teams of subject matter experts from across our three divisions. The teams were charged with developing specific sustainability objectives suited to HII’s business and sustainability strategy. In doing so, the teams considered the impact on stakeholders, impact on the business strategy, impact on HII’s operations, impact on HII’s customers, and regulatory requirements. We look forward to sharing our progress on these goals in our annual Sustainability Reports.

To Secure Our Business

Supply Chain Management

By the end of 2025, (a) we will develop sustainability criteria and incorporate them into the Supplier Engagement Plan, and (b) in parallel, update the Supplier Code of Conduct to include a cross-reference to Supplier Engagement Plan for sustainability.
We will conduct a current state analysis of supply chain risks, capabilities, and processes in 2024. We will develop a roadmap by the end of 2025 that will ultimately increase tracing of supply chain risks (e.g., countries of concern, conflict minerals, counterfeit parts, potential environmental/climate-risk disruptions, human capital, and cybersecurity) by 2030 through improved supplier engagement and data tracking.

To Protect Our Resources

Employee Engagement

We will continue to drive increased employee engagement as measured by annual surveys to create value for the company.

Diversity and Inclusion

We commit to good faith efforts to increase total representation of women and people of color across all levels of leadership in accordance with our annual affirmative action plan.
We commit to increasing the hiring of veterans such that veterans make up 20% of HII’s overall workforce by 2030.
We commit to increasing the percentage of interns and graduates recruited from HBCUs by 10% annually through 2030.

Community Relations

We will target 40% of our total giving to Education by 2030 while also prioritizing the core areas of Community and Veterans & Military.
We will make good faith efforts to increase the number of employee volunteers by 10% annually through 2030.
Focusing on the crisis of health and hunger, HII and our employees will provide 100,000 meals annually to those in our communities facing food and nutrition insecurity.

To Build Our Communities

Employee Engagement

We will continue to drive increased employee engagement as measured by annual surveys to create value for the company.

Diversity and Inclusion

We commit to good faith efforts to increase total representation of women and people of color across all levels of leadership in accordance with our annual affirmative action plan.
We commit to increasing the hiring of veterans such that veterans make up 20% of HII’s overall workforce by 2030.
We commit to increasing the percentage of interns and graduates recruited from HBCUs by 10% annually through 2030.

Community Relations

We will target 40% of our total giving to Education by 2030 while also prioritizing the core areas of Community and Veterans & Military.
We will make good faith efforts to increase the number of employee volunteers by 10% annually through 2030.
Focusing on the crisis of health and hunger, HII and our employees will provide 100,000 meals annually to those in our communities facing food and nutrition insecurity.

Securing Our Business

Our commitment to integrity, respect, and performance is manifest in the ‘how’ of how we do business. In service of building the trust of our stakeholders, we bring these principles to life in our daily actions, our formal frameworks and processes, and in our overall culture.

Integrity is at the heart of who we are and what we do, and our governance structures and policies reinforce personal responsibility and accountability. We thoughtfully coordinate our formal processes and decision-making to maintain high-quality safety and performance while doing the right thing in our everyday operations.

From our data and cybersecurity practices to our supply chain management, our policies and training for ethical and safe conduct ensure our actions align with our values and instill the trust and confidence of our stakeholders in our work, services, and products.

Protecting Our Resources

Heavy construction, resource use, and electricity use are an inherent part of HII’s business. As the nation’s largest military shipbuilder, we take responsibility for the environmental impact of our operations and make environmental management a priority.

We take our corporate value of responsibility very seriously; this means that we hold ourselves responsible for protecting shared resources and the environment. By minimizing our environmental impact we help safeguard environmental freedom: the freedom to have clean drinking water and uncontaminated air, soil, homes, and community areas. We are environmentally responsible in the design and provision of our products and services, in the operation of our facilities, in the selection of suppliers and while engaging in our business activities. We comply with all applicable environmental laws and regulations, as well as our voluntary commitments to sustainable practices and environmental protection.

Across our three divisions, we proactively use state-of-the-art technologies and knowledge to protect and preserve our natural resources—and we consistently see results. Through environmental stewardship, waste minimization, and pollution prevention activities, we minimize the quantity of pollutants we release into the local air, water and landfills. Several of our programs go above and beyond what is required, and we’ve received numerous awards and recognition for environmental compliance, as well as our reductions in water consumption, air emissions, solid waste generation and energy consumption. We educate our employees and communities on why environmental challenges are important and why we must act to remain responsible stewards.

Building Our Communities

People are at the core of why we’re in business. Communities of people — employees, customers, partners, neighbors, the people protected by our products — are who we serve and why we serve with integrity, responsibility, engagement, and trust. In service of people and our communities we contribute to national security, protect our employees (who live in our nearby communities), and engage with our neighbors. Recognized as one of America’s top large company employers, we are a values and ethics driven organization that puts people’s safety and well-being first.

As the largest employer in two states and with employees all over the world, we are deeply invested in the communities where we do business and our employees live, from workforce development to early childhood education and beyond. We want to be known as a company that builds strong people and strong communities, across the generations. We strive to uphold good relations with the communities in which we work by maintaining safe and healthy workplaces, delivering high-quality, safe products, fostering a culture of inclusion, and engaging our employees every step of the way.

2022 GHG EMISSIONS

We have estimated our 2022 baseline of Scope 1 and 2 GHG emissions to be 323,113 metric tons of CO2eq.

“At HII, our mission requires the best of us — the utmost character and values. Our long-term success and growth depend on truly living out our values in our relationships with all our stakeholders. This is vitally important work to secure another century of success at HII.”

– CHRIS KASTNER, CEO AND PRESIDENT

Paul C. Harris

EXECUTIVE VICE PRESIDENT AND CHIEF SUSTAINABILITY AND COMPLIANCE OFFICER

”In what I call our MVP approach, our mission, values, and purpose guide our Sustainability strategy, structural policies and programming, and culture of ethics. These principles come to life in our daily actions and behaviors, in our formal frameworks and processes, and in our spirit and culture. All in service of our nation, our communities, and each other.“

SUSTAINABILITY

SERVING OUR SHARED FUTURE