2021 NG Sustainability Report - Final

2021
Sustainability Report
Contents
Message From CEO 3 PIONEERING PERFORMANCE 23 PIONEERING PEOPLE 36
Our Company 4
Company Performance 24 People & Culture 37
Our Values 4
Governance 24 Diversity, Equity & Inclusion 38
Sustainability at Northrop Grumman: Our Approach 5
Compliance 26 Employee Health & Safety 42
Ethics & Responsible Business Practices 27 Employee & Family Well-Being 44
Business Continuity & Operational Resilience 31 Talent Management 45
PIONEERING PURPOSE 7 Global Supply Chain 31 Employee Development 48
Cybersecurity & Data Protection 35 Corporate Citizenship 50
Protecting Our Environment 8
Environmental Sustainability 12
Environmental Remediation at Our Legacy Sites 14
APPENDIX 56
Selected Awards & Recognitions for 2021 57

Organizations & University Partnerships 58
PIONEERING INNOVATION 15
Materiality 59
Product Strategy & Innovation 16
Stakeholder Engagement 60
Environmental Data Accountability Methodology 61
Forward-Looking Statements 61
GRI Standards Content Index 62
SASB Index 67
ESG Performance Data Matrix 68
Message From CEO In addition to our focus on the natural environment, Northrop Grumman is
also creating a safer, more equitable environment for everyone. This is core
Northrop Grumman has always pioneered in the face of the toughest to our beliefs and Values. For more than 10 years, we’ve been recognized as
challenges on the planet. Now, that challenge is the planet, and specifically a leader in diversity, equity and inclusion. We take our role in accelerating
doing our part to secure a sustainable future. Environmental and societal positive societal impact seriously. Solving the world’s greatest problems
changes globally mean that our responsibilities to defense and national requires equitable and inclusive environments, which we are seeing grow
security are ever evolving, and we are utilizing technology to adapt. and thrive within our teams, every day. We are proud to have been named,
once again,as one of DiversityInc’s Top 50 Companies for Diversity, as well as
Our industry is at an inflection point. There is no question that climate change is a top company for veterans, people with disabilities, employee resource
a matter of national security, and its impact — severe weather, access to clean groups and executive diversity councils. We were also recognized as one of
water, food insecurity, resource scarcity and population migration — all Equileap's top 25 companies for gender equality on the S&P 500 and as “Best
contribute to destabilization that cannot be ignored. Northrop Grumman of the Best” in Top Supplier Diversity Programs by U.S. Veterans Magazine.
stands at the forefront by providing technical and tactical solutions that help us
understand, predict and address the dynamic implications that climate change A vision for a more sustainable future underpins our business strategy. We will
presents to ourselves, our customers and our communities. From our Mission continue to be transparent in how we work and report on our progress
Extension Vehicles that make spacecraft reusable to our Tech for Conservation across areas of our business, including sustainability. Helping us to do that is
initiative that pairs our engineers with conservationists in need of technological Mike Witt, who was named to the role of Chief Sustainability Officer. Our entire
solutions to unique challenges facing ecosystems, we’re working to expand team of dedicated, Values-driven leaders is helping us meet and exceed the
the boundaries of what it means to define possible as a global steward. standards of business that we set for ourselves.
Reducing our carbon, water and waste footprints remain an important part of While the stakes for the planet and our society have never been higher, we
our strategy. We are announcing a new goal of achieving net zero have the talent, technology, purpose and resources to face the challenge
greenhouse gas emissions by 2035 to do our part in limiting global and to help create a more sustainable future.
temperature rise by 2050. In 2021, we expanded our on-site solar opportunities

to 15 additional Northrop Grumman campuses, prepared for the fully electric Sincerely,
transition of our fleet by investing in dedicated charging stations and drove
water conservation measures in drought-prone states, like California, resulting
in a 12 million-gallon reduction in water withdrawals. We’ll be expanding on
these efforts, and many more, throughout 2022 and beyond.
KATHY J. WARDEN
Chair, Chief Executive Officer and President
NORTHROP GRUMMAN Message From CEO 3

Our Company Our Values
Northrop Grumman is a technology company, focused on global security and human discovery. Our pioneering solutions We have a set of Values that are the bedrock of our culture and support our ability to deliver on our shared purpose.
equip our customers with capabilities they need to connect, advance and protect the U.S. and its allies. Driven by a shared And while our purpose reflects what we do and why we exist, our Values reflect who we are and how we behave,
purpose to solve our customers’ toughest problems, our 88,000 employees define possible every day. reaffirm what is important to us and explicitly state what we should expect from our company and from one another.
Our Values are what make our company special.
We have four operating sectors that comprise our business:
Aeronautics Systems is a leader in the design, development, production, integration, sustainment and modernization of
aircraft systems for the U.S. Air Force, the U.S. Navy, other U.S. government agencies and international customers. These aircraft
systems support four mission areas: strike; air dominance; battle management and control; and intelligence, surveillance and
We do the right thing We do what we promise
reconnaissance (ISR).
Defense Systems is a leader in the design, development, production, integration, sustainment and modernization of weapon
and mission systems for U.S. military and civilian agency customers, and a broad range of international customers. Major
products and services include integrated battle management systems, weapons systems and aircraft and mission system
sustainment and modernization.
Mission Systems is a leader in advanced mission solutions and multifunction systems, primarily for the U.S. defense and
intelligence community and international customers. Major products and services include cyber; command, control,
communications and computers, intelligence, surveillance and reconnaissance (C4ISR) systems; radar, electro-optical/infrared
(EO/IR) and acoustic sensors; electronic warfare systems; advanced communications and network systems; cyber solutions; We commit to shared success We pioneer
intelligence processing systems; navigation; and maritime power, propulsion and payload launch systems.
Space Systems is a leader in delivering end-to-end mission solutions through the design, development, integration,
production and operation of space systems, missile defense, launch and strategic missile systems for national security, civil
government, commercial and international customers. Major products include satellites and payloads; ground systems;
missile defense systems and interceptors; launch vehicles and related propulsion systems.
Our Values are what make our company special.
NORTHROP GRUMMAN Our Company & Our Values 4

Sustainability at ABOUT THIS REPORT
Northrop Grumman:
This report follows the Global Reporting Initiative (GRI)
Standards, a voluntary framework widely used to promote
Non-Financial
Performance Metrics Our Approach transparency in ESG reporting. Our GRI Index is available
toward the end of this document, located in the Appendix,
At Northrop Grumman, we have delivered innovation and along with our Sustainability Accounting Standards Board
Diversity
leadership to our customers and to the industry for decades (SASB) Index and ESG Performance Data Matrix. Additionally,
and we believe it is our responsibility to provide that same we are continuing to build upon our alignment with the
Employee Experience
level of sustained value to the people we engage and the recommendations from the Task Force on Climate-related
Safety planet we help protect. Financial Disclosures (TCFD) by publishing our first TCFD
summary report; more details may be found in the
Environmental Sustainability This means recognizing and managing our company’s Protecting Our Environment section of this report.
environmental, social and governance (ESG) impacts
Quality responsibly while also harnessing our collective talents, We use the word “material” throughout this report as is
ingenuity and passion to reach beyond our walls to consistent with GRI terminology, which states material
Customer Satisfaction help provide for a sustainable world. As we progress on issues include those that “reflect the organization’s
our sustainability journey, our approach is informed by significant economic, environmental and social impacts;
our various stakeholders — from our customers to our or substantively influence the assessments and decisions of
employees to our shareholders to our communities and stakeholders.” We do not use the term as defined by or in
beyond. Northrop Grumman is a company driven by the context of the U.S. Securities and Exchange Commission
Values, and our Values guide our approach to sustainability. (SEC) laws including those related to SEC reporting and
disclosure obligations, or any other securities laws, or as
the term is used in the context of financial statements and
NON-FINANCIAL
financial reporting.
PERFORMANCE METRICS
Please visit our website to read our previous reports, view
Our commitment to sustainability and a culture of
ESG-related policies, statements and disclosures, and to
inclusiveness and integrity is so essential to our business
read the latest news about how our people are using
that we incorporate non-financial performance metrics
technology as a guiding force for sustainable progress.
into our annual incentive compensation plan. These metrics
— Diversity, Employee Experience, Safety, Environmental
Sustainability, Quality, Customer Satisfaction — exhibit our
commitment to achieving a high level of ESG performance.
This report covers our performance against these metrics,
as well as other important ESG metrics and goals that drive
our company forward.
NORTHROP GRUMMAN Sustainability at Northrop Grumman: Our Approach 5

SUSTAINABILITY SUCCESS INDICATORS INDUSTRY RECOGNITIONS
NET ZERO $39.3 MILLION One of DiversityInc’s “Top 50 Companies for

Diversity,” as well as a top company for people
Achieved a perfect score on the Corporate
Equality Index and designated as a “Best Place
with disabilities, LGBTQ+, Native American/Pacific to Work for LGBTQ+ Equality”
Northrop Grumman is committed to social value generated from Northrop
Islander, employee resource groups, mentoring,
achieving net zero greenhouse gas (GHG) Grumman, the Northrop Grumman
executive diversity councils and ESG
emissions in our operations by 2035 Foundation and our employees
Received the James S. Cogswell Outstanding
Industrial Security Achievement Award at
$1.4 BILLION $1.1 BILLION

MSCI ESG rating of AA six of our facilities across the country
in capital investment (CapEx) in R&D investments

Included on the Dow Jones Sustainability
Designated as a “High Performing
World Index and North America Index
Company” by Willis Tower Watson for our
$35.7 BILLION 41 MILLION

and named “S&P Global Industry Mover” by
high levels of employee engagement
S&P Global
total sales in 2021 pounds of waste diverted from landfill
Leadership score of A- on the 2021 CDP Support of 14 employee resource

groups (ERGs) with more than 25,000
25% 36%
Climate Change disclosure
total employee participants
female employees employees of color

Achieved a perfect score on the
CPA-Zicklin Index of Corporate Political Included on 3BL Media's list of 100 Best
Corporate Citizens
35% 18%
Disclosure and Accountability
female leadership people of color in leadership

(Vice President and above) (Vice President and above)
NORTHROP GRUMMAN Sustainability at Northrop Grumman: Our Approach 6

Pioneering
Purpose
EXPANDING OUR VISION
FOR A SUSTAINABLE WORLD
As we pioneer groundbreaking technologies, we remain committed to
protecting natural resources and minimizing our environmental impacts to
support a sustainable future. Our ability to proactively manage our footprint
and recognize opportunities to improve performance helps ensure that our
environmental sustainability strategy is bold, our environmental compliance
programs remain effective and that both clearly reflect our company Values.
NORTHROP GRUMMAN Pioneering Purpose 7

Protecting Our Over the past decade, we have taken meaningful action to
reduce the carbon footprint of our operations, and we are
Environment prepared to do our part to support this global vision. As the

next step in our journey to decarbonize, we are committed
We recognize environmental stewardship as a key to achieving net zero GHG emissions in our operations
“Here at Northrop Grumman, we are innovators dedicated to a mission
component of being a responsible corporate citizen. We by 2035. As a part of this commitment, we will continue to to define possible. We design solutions to address some of the biggest
incorporate environmental sustainability into our business emphasize efficiency, invest in low and zero carbon energy challenges facing our society and we remain committed to delivering
process and operations and prioritize strong environmental solutions and incentivize operations-related emissions those solutions sustainably for the benefit of everyone. Our new Net Zero
management. In 2021, we adopted additional processes to reductions through the company’s non-financial metrics. GHG emissions goal is a reflection of our Values and it is the next big step
help our employees remain safe amidst the pandemic,
We recognize that focusing on GHGs emitted from our we are taking to do our part to build a brighter and more secure future.”
while continuing efforts to reduce our environmental
footprint, and using our past performance to help shape operations alone is not all that we can and need to do to
future goals with sustainability at the forefront. support the goal of global net zero emissions, and we are MIKE WITT, CHIEF SUSTAINABILITY OFFICER
currently in the process of finalizing a sustainability strategy
that includes addressing the broader environmental
impacts of our operations in the near- and long-term, as
Non-Financial well as those of our value chain.
Performance Metrics
Environmental Sustainability: Reductions NET ZERO GHG EMISSIONS

in absolute greenhouse gas emissions IN OUR OPERATIONS BY
2035
and potable water consumption, and
improvement in solid waste diversion
(i.e., waste diverted from landfill disposal)
CLIMATE-RELATED RISK
RESPONDING TO THE EFFECTS OF
We are committed to transparency regarding
CLIMATE CHANGE: NET ZERO BY 2035 climate-related risk and our risk management processes.
Decarbonizing our future is a global challenge, and a In 2021, we began taking additional steps according to
critical step in mitigating the impacts of climate change the Task Force on Climate-related Financial Disclosures
on our planet. As a leader in the aerospace and defense (TCFD) to better reflect the risks and opportunities for our
industry, we support climate science and the need for company related to climate change. We will be
society as a whole to limit global temperature rise to 1.5 publishing a summary report in early 2022.
degrees Celsius and drive global GHG emissions to net
zero by 2050, as stated in the Intergovernmental Panel on
Climate Change (IPCC) 2018 special report.

GHG EMISSIONS PROGRESS performance. Growth of our real estate and production ENERGY CONSERVATION In 2021 our electricity consumption remained constant
operations as well as employees returning to onsite work compared to 2020 and natural gas usage increased by
We are reporting GHG emissions performance in Energy conservation is a central tenet of our strategy to
after significant pandemic-driven reductions in 2020 also 12.9%, but we realized a less than 3% increase over 2019
accordance with the company’s goal to achieve net zero reduce climate impact and costs within our operations. We
contributed to the increase in emissions in 2021. performance for both measures. Similar to overall GHG
operations by 2035. As we undertake activities to meet value the input of our stakeholders and have continued to
performance, factors such as our return-to-onsite work
this commitment, we remain focused on implementing Even with these challenges, we found ways to offset engage an internal energy management committee where
initiative and implementation of COVID-19 related operating
projects that further reduce our emissions, support energy additional emissions increases, such as through lighting participants share best practices and learn about new
procedures drove this increase in energy use.
efficiency and improve operational performance. retrofits, improvements to data center hardware and technologies that can further drive efficiencies. Externally,
a continued focus on building efficiencies. Despite the we have continued our collaboration with the U.S.
Our GHG emissions performance over the past two years
operational changes experienced this year, we realized a Environmental Protection Agency (EPA) under the ENERGY
has fluctuated as a result of the COVID-19 pandemic and
3.4% decrease in total emissions over our 2019 performance STAR Partner program; this includes working with EPA
our efforts to protect the health of our employees. This
and are positioned to achieve additional emissions leaders to develop an energy management vision based
year, we saw a 5.2% increase in emissions over 2020
reductions as we move through this new goal period. on ENERGY STAR’s guidelines for energy management to
support implementation of efficiency measures at our sites.
2021 GHG PERFORMANCE HIGHLIGHTS SCOPE 1 & SCOPE 2 (TOTAL MTCO2e)
7,110 MT CO2e 1,000,000
Implemented 75 GHG and energy 751,182

725,835
reduction projects, expected to reduce 750,000 689,651
7,110 MT of CO2e annually
1,200 MT CO2e
500,000
Invested in HVAC equipment upgrades, 250,000

reducing 1,200 MT CO2e annually
1,890 MT CO2e 2019 2020 2021
Completed 36 LED lighting upgrades, A detailed breakout of our Scope 1 and Scope 2 emissions as well as renewable energy use and generation
reducing 1,890 MT CO2e annually are available in our ESG Data Performance Matrix and our 2021 CDP Climate Change response.

EXPANDING RENEWABLE providing EV charging for employees in 2021, adding a total
ELECTRICITY OPPORTUNITIES of 64 new charging connections across the enterprise to

accommodate employee demand for this service.
Investing in clean energy is an important aspect of our
climate strategy. We continue to steadily build our portfolio We also know that business and regulatory considerations
of both onsite and offsite solar projects to support are pushing our vehicle fleets toward electrification, and
decarbonization. The development process has begun on we are taking meaningful strides to plan for that shift. Last
the 62.5 megawatt solar facility in Orange County, Virginia summer, we brought on a Fellow from Environmental
that Dominion Energy is constructing as a part of our 15-year Defense Fund who supported this effort by conducting a
virtual power purchase agreement (VPPA), signed in 2020. In study on the opportunities and challenges associated with
2021, we also completed installation of a 1.1 megawatt onsite electrifying our fleet, particularly focusing on market drivers,
solar array at our facility in Rolling Meadows, Illinois, and infrastructure planning and acquisition models. We have
explored onsite solar opportunities with 15 other Northrop already begun preparing for the zero-emission vehicle
Grumman campuses. As a result, we are moving forward transition of our fleet by investing in dedicated fleet charging
with four renewable energy projects in 2022. With these stations. This includes the purchase of our first level 3
new projects and our Virginia solar facility under charging station that is designed to rapidly charge any EV up
construction, we expect our GHG emissions profile will to and including a Class 8 tractor. For more information on
shrink meaningfully in the next two years. steps we are taking to reduce our upstream transportation
emissions, please see the Transportation and Logistics section.
DRIVING TOWARD ZERO

EMISSION VEHICLES ENVIRONMENTAL &
HIGHLIGHT STORY
Nearly 24% of global carbon emissions from fuel combustion
EFFICIENCY PROGRAM
Harnessing Solar Power at are attributed to the transportation sector, and road vehicles To advance efficiency and environmental conservation
Rolling Meadows, IL like cars, trucks and buses account for nearly three-quarters across Northrop Grumman, we employ a centralized
of those emissions according to the International Energy investment mechanism to allocate additional, targeted
We completed installation of our newest solar capital funding. Through our environmental and efficiency
Agency.* At Northrop Grumman, we strive to equip our
power-generating system at our Rolling Meadows, (E&E) allocated capital, we solicit project ideas from across
employees with the resources they need to support carbon
Illinois, site in 2021. The array is the largest onsite solar the company and fund impactful projects that drive
reduction. Our Electric Vehicle (EV) Workplace Charging
energy installation at a Northrop Grumman facility efficiency and performance to our goals. In 2021, the E&E
Program has become an increasingly important service
to date and joins the company’s other solar power allocation totaled $1 million and was distributed across
that we provide for employees, especially as we continue
initiatives in Florida, California and Virginia. The new six projects focused on driving water conservation in
to see demand for electric vehicles rise. In 2021, 529 new
system generates 1.1-megawatt alternating current water-stressed regions, like California, reducing 12 million
drivers enrolled in this program, which is a 32% increase
(AC) solar electricity and will reduce an estimated 870 gallons of water withdrawals annually. We will continue to
in enrollment since 2020. Three additional sites began
metric tons of carbon dioxide emissions each year — grow this investment in 2022 to incentivize and encourage
enough to power nearly 100 homes for a year. innovations and operational efficiencies that support
* Tracking Transport 2020.” IEA, May 2020, https://www.iea.org/reports/tracking-
transport-2020.
environmental sustainability.

ENVIRONMENTAL MANAGEMENT At Northrop Grumman, we take a multi-pronged approach to responsible management of our environmental impacts.
Sound environmental management and a commitment to environmental

sustainability are critical components of our company culture. At Northrop
Grumman, our environmental, health and safety (EHS) policy and associated
Program Execution Compliance Assurance
procedures help to maintain compliance and reduce EHS risk while driving
for continual improvement. At the same time, our subject matter experts We position our EHS professionals at all levels of the company to manage We conduct site-level EHS compliance reviews to help evaluate how key
execute environmental programs that lessen our environmental risks to help and support our environmental programs. These professionals are fundamentals of our environmental programs are being successfully
ensure that we remain compliant with applicable laws, regulations and responsible for executing site-level compliance activities, implementing key integrated into day-to-day operations. In 2021, we largely resumed in-
company-established directives. projects, conducting compliance reviews, maintaining EHS management person reviews, although some were completed with a hybrid in-person/
systems, tracking our performance against established goals and targets virtual approach to accommodate the ongoing challenges presented
Navigating the complex and evolving nature of environmental
and engaging with internal and external stakeholders. The work these by the COVID-19 pandemic. In total, we conducted reviews at 30 of our
management requires both a stalwart foundation as well as the flexibility to
individuals perform and facilitate is critical to the implementation and sites, which account for roughly 36% of the sites included in this program.
adapt to emerging issues.
success of our environmental programs at Northrop Grumman.
EHS Management Systems Stakeholder Engagement
We maintain an internal EHS Management System (EHSMS) requirement, We implement training and educational campaigns to help ensure
which is a pillar of our compliance program. We base our EHSMS employees are aware of and understand job-specific requirements
on International Organization for Standardization (ISO) 14001, and and company environmental priorities. We also engage with external
we require the implementation and maintenance of a management stakeholders including regulatory agencies, industry organizations, peers
system for our sites that actively manages complex or specific EHS risk. and our local communities. Interacting with these stakeholders allows us
In addition, currently 22 of our sites hold an external environmental to share insights on industry-wide issues, benchmark our performance
certification, such as ISO 14001. These sites account for approximately and gather feedback to inform our environmental priorities.
24% of our global footprint.
It is the policy of Northrop Grumman to conduct operations in a manner that is environmentally

responsible and is focused on protecting the health and safety of employees, contractors, visitors
and surrounding community.

RESOURCE EFFICIENCY
2021 HIGHLIGHTS
Water
6.4M GALLONS 41M GALLONS

We recognize the importance of water for our operations
and within our communities, so we remain committed to
using this critical resource efficiently. Within our facilities, we
remain focused on minimizing water withdrawal through Improved water monitoring and the Implemented 28 water conservation
the implementation of efficiency projects and consistent installation of submeters at three of our sites projects across the company, conserving
tracking of our consumption patterns. Our sites withdraw reduced 6.4 million gallons annually over 41 million gallons annually
water primarily from municipal and groundwater supplies,
18M GALLONS 5.6M GALLONS

with some surface water consumption from rivers and
Environmental
rainwater capture systems. We mainly use our water
withdrawals to support building evaporative cooling
Converted a complete chiller system with Completed upgrades to an industrial
Sustainability and humidification and manufacturing processes, as well
as traditional domestic water uses. Our operations do
14 hydraulic units into a single pass cooling wastewater process at our site in Baltimore,
system at our site in Radford, Virginia, Maryland, estimated to conserve 5.6 million
Operating our business sustainably is both a global not use seawater or produced water sources, and any
conserving 18 million gallons of water and gallons of potable water annually
imperative and central to our Values. We have taken wastewater discharges from our operations flow through
saving $140,000 in operational costs annually
significant steps over the last decade to markedly reduce onsite wastewater treatment plants or directly to municipal
the environmental impacts of our operations, focusing sanitary sewers; all adhere to local regulatory and/or
heavily on GHG emissions, water usage and waste streams. permit requirements for quality.
We worked diligently toward our environmental Although we have seen a marginal net increase in water TOTAL WATER WITHDRAWALS (IN GALLONS)
goals in 2021 and improved employee awareness of consumption across the enterprise over the past two years,
our environmental priorities. We continued to report we realized a 7.7% increase in consumption over 2020. 2,000,000,000
our environmental progress, and to hold ourselves This change is largely due to real estate and operational
accountable through our non-financial performance growth, as well as more activity in production operations
with water intensive processes. In addition, the benefits 1,500,000,000 1,405,432,942 1,422,103,584
metrics for the environment. In 2021, we focused on setting 1,320,987,911
our next-generation goals and achieving long-term cost of our water conservation efforts this year were offset
savings through consistent investment in our sites. As we by an increase in consumption patterns associated with
leaks, system inefficiencies and employees returning to 1,000,000,000
prepare for the next phase of our journey, we will maintain
our commitment to transparency on our foundational onsite work following COVID-19 related onsite reductions
environmental metrics. experienced in 2020.

500,000,000
2019 2020 2021

Waste
2021 HIGHLIGHTS Northrop Grumman understands that decreasing waste

and increasing efficiency are key to a sustainable business.
829,557 LBS 25,000 LBS

As a foundation, we ensure the solid and hazardous waste
generated within our operations is responsibly managed
from point of generation to final disposition and done so
Implemented 28 solid waste projects across Implemented an aluminum powder in compliance with all applicable legal requirements. We
the company, estimated to divert 829,557 recovery program at a site in West Virginia, exercise additional due diligence with our hazardous
pounds from landfill annually estimated to divert 25,000 pounds of waste waste streams by maintaining a list of approved treatment,
from landfill annually storage and disposal facilities for our approved waste
haulers to use.
62,000 LBS 160,000 LBS

HIGHLIGHT STORY
Using Simple Changes

We realized long-term sustained waste diversion for the
company by implementing various waste initiatives. In
2021, our waste diversion efforts focused on implementing
to Reduce Waste
Implemented composting programs at four Introduced a waste oil recycling program
new sites, estimated to divert 62,000 pounds at our site in Sunnyvale, California, that will projects related to source reduction, material recovery, Northrop Grumman’s supply chain and operations
from landfill annually reduce waste by 160,000 pounds annually recycling, composting, material reuse and donations. team at our Allegany Ballistics Laboratory (ABL)
This year, we completed several successful projects facility in Rocket Center, West Virginia, began
and saw progress at many of our sites. We achieved a evaluating areas with high material costs to
49.1% diversion rate of waste to landfill, which is a slight reduce onsite consumable material expenses. The
decrease compared to last year. An increase in our previous composite resin process was consuming
SOLID WASTE DIVERSION FROM LANDFILL manufacturing program activity and an increase in the approximately 7,000, two-gallon steel paint cans
number of employees returning to onsite work following annually for mixing composite resin used to produce
100% the pandemic-induced reductions of 2020 have been the composite rocket motor cases. We tasked a team of
primary drivers impacting waste generation in some of our site engineers with identifying alternatives to reduce
key operations. this annual cost of $200,000.
75%
The team came up with the idea of using a reusable
stainless steel container — an 8-quart pot from a
51.8%
50% 47.0% 49.1% Our waste diversion efforts focus restaurant — and successfully implemented it in
on projects related to source production operations. The process change was
reduction, material recovery, added in April 2021. It is a cost-savings measure, and

25%
recycling, composting, material will reduce 4.5 tons of solid waste from going to
landfills annually. This project is a great example how
reuse and donations.
a single team can make a meaningful impact.
2019 2020 2021

Environmental Remediation It also allowed volumes of soil to be left in place, avoiding the need to transfer
soil to an offsite treatment and landfill facility and lessening community disruption.
at Our Legacy Sites The in-situ thermal remediation technology is effectively treating groundwater,
exceeding the State of New York’s clean-up objectives. Furthermore, we reinjected
Northrop Grumman is committed to addressing its environmental remediation the groundwater from this treatment process into the soil, avoiding an additional
obligations safely and effectively, in close coordination with federal, state and waste stream. For additional updates on the activities at Bethpage, please visit our
local regulators and stakeholders, and in accordance with scientifically sound and Community Spotlight: Bethpage webpage.
technologically proven approaches. We dedicate most of our remedial efforts
to legacy sites where manufacturing operations have long since ceased. We Eastern Ohio: Former Waste Disposal Site
deploy innovative technologies as alternatives to traditional resource-intensive
remediation practices to reduce environmental disturbances, lower energy use Northrop Grumman is addressing waste and soil contamination at Zeidrich, a
and accelerate remedial efforts, returning property to beneficial use. In 2021, we 45-acre legacy site in Eastern Ohio. Historical operations included decades of
remained committed to meeting our annual planned remediation obligations and industrial waste disposal containing polychlorinated biphenyls, mercury, volatile
were able to close out some key projects. organic compounds and other contaminants. In 2021, Northrop Grumman
excavated and removed approximately 40,000 tons of waste materials and
soil materials from the site. We performed the work in coordination with federal,
Bethpage, New York: Former U.S. Navy/Grumman Facilities
state and local government regulatory authorities and the local community. Our
We have been engaged in extensive remediation activities related to historic work focused on protecting adjacent wetlands and other ecological features.
operations at the former U.S. Navy and Grumman facilities in Bethpage, New Upon completion of restoration efforts in early 2022, the site will be positioned for
York. Among other environmental efforts, Northrop Grumman has reached an unrestricted use in the future.
agreement with the State of New York, for the company, in partnership with
the State, to take additional measures to implement the Bethpage amended Southwestern Nebraska: Former Capacitor Manufacturing Site
groundwater remedy, make payments to benefit water districts and other public
water supply and restoration projects, and resolve claims for natural resource Northrop Grumman received the state of Nebraska’s approval to permanently
damages. The additional measures will complement the work that we understand shut off and decommission the water treatment plant at the site after 25 years of
the Navy has agreed to undertake, and further benefit the citizens of Bethpage operation. The water treatment plant addressed groundwater contamination
and surrounding communities and the local water districts. The agreement spanning 1.5 miles, treating 80 million gallons of groundwater annually. Additional
builds on the company’s long-standing partnership with the State and exhaustive remediation technologies supplemented groundwater treatment such as soil
work over the past 25 years to understand and remediate contamination. We vapor extraction and in-situ bioremediation and chemical oxidation injections
look forward to the State obtaining final court approval of the agreement and that significantly reduced groundwater contamination concentrations over time.
proceeding with the work. Northrop Grumman performed the decommissioning work in coordination with
state and local government authorities and the local community. The aquifer has
Among the numerous environmental activities we have undertaken, we have been restored to the extent that no further remediation is required.
used electric heated in-situ thermal remediation there, effectively avoiding many
of the waste streams that would have been generated with a more traditional
process. This remediation technology is an “in-ground” application, which means
the treatment was performed without emitting contaminants into the atmosphere.

Pioneering
Innovation
DRIVING THE INTERSECTION OF
SUSTAINABILITY & TECHNOLOGY
At Northrop Grumman, we develop emerging technologies that “Define Possible.”
We take on some of the greatest challenges and continuously improve our
systems to deliver the highest quality products and capabilities to our customers.
NORTHROP GRUMMAN Pioneering Innovation 15

Product Strategy PROGRAM QUALITY
& ENGINEERING
& Innovation An enduring commitment to quality is reflected in our
Our teams pioneer new technologies and areas of culture and systems. Our Quality Management Policy
research that will connect, advance and protect requires our sites to implement a Quality Management
humanity. Our engineers incorporate some of the newest System (QMS) consistent with either ISO 9001 or the
technologies with proven best practices to deliver industry- aerospace industry-specific AS9100 standards, as
leading technologies and innovative solutions. Adapted appropriate. Leadership and quality professionals
trainings enable our engineers to assess the impact of curate quality management policies, report on metrics
decisions on the overall systems during every stage of the and share best practices on a quarterly basis.
development process.
We highlight the achievements of employees who
Experience and dedication to continuous improvement demonstrate a dedication to quality during our annual
helps us develop our best practices and efficiently design Quality Month celebration in October. Despite the
and deliver the solutions for our customers. Our processes continued challenges of the COVID-19 pandemic, we
emphasize our stakeholder needs, mission objectives, hosted a safe and successful Quality Symposium in
operating environment and technological capabilities. 2021 with the theme, “Unshakable Focus on Quality.”
The event highlighted exemplary quality leaders and
As we push the boundaries of possible, our teams continually quality in the age of digital transformation.
find innovative ways to support progress. From observations
to decision support, Northrop Grumman develops and
operates systems and services to deliver environmental
intelligence through science, sensors, and enterprise services. Our customers need our
From weather and climate monitoring, to improving energy products to work, every time.
efficiency through the use of unmanned air vehicles, to
partnering with universities and organizations to develop
the energy solutions of tomorrow, we are doing our part to
create the technology for a sustainable future.

Seven Decades of Studying Earth & Its Star
For over 60 years, Northrop Grumman has built spacecraft that contribute to our understanding of the natural world,
from catastrophic weather events to pollution to the impacts of climate change. The missions listed here showcase our
technological innovation in space, as well as the information that these spacecraft provide that is essential to
understanding more about our world and its place in the solar system.
Understanding Monitoring Researching Evaluating Studying Our Sun Investigating

Climate Change the Weather the Oceans Land Changes Atmospheric
ICESAT-2 measures the Coriolis measures ocean Aqua focuses on the Earth’s Landsat 4, 5, 8, and 9 and
SORCE measured the total
radiation from the sun Dynamics
Spacecraft
height of the polar ice surface wind speed and water cycle, including EO-1 collect multispectral to evaluate its effects on
climate change. ICON Aura, a follow-on to the Missions
in order to estimate the direction. JPSS 2, 3, and interrelated processes in and hyperspectral imagery successful UARS mission,
total volume of ice — a 4 will provide global the atmosphere, oceans, to measure changes on the explores the ionosphere
key indicator of climate environmental data for and land. OrbView-2 global land surface and to understand the physical measures global sources 1950s 2000s
connection between our of trace atmospheric Explorer 6 EO-1
change. OCO-2 monitors weather prediction models provided data on the identify human and natural constituents. AIM observes
atmospheric carbon and scientific data for global ocean bio-optic causes of change. world and the sun. RHESSI
noctilucent clouds which
dioxide, the leading climate monitoring. properties. are very sensitive to 1970s Aqua
human-produced ISEE 3 Coriolis
atmospheric conditions.
greenhouse gas. SORCE
1980s Aura
SMM FORMOSAT 3
Landsat 4 THEMIS
Landsat 5 AIM
C/NOFS
1990s
IBEX
OCO-2
POGS
ISES
UARS 2010s
TOPEX Landsat 8
OrbView-1 ICESat 2
METEOR ICON
TOMS-EP
Orbview-2 2020s
FORMOSAT 1 Landsat-9
KOMPSAT 1 JPSS
ACRIMSAT

CUSTOMER SATISFACTION & QUALITY METRICS
We are continuously analyzing ways to perform for our customers and move
HIGHLIGHT STORY
forward together. Customer satisfaction is crucial to our continued success, and we
hold ourselves accountable for quality performance excellence. Our programs, Recognizing World Class Innovation
quality and engineering (PQE) team oversees our performance in these key areas
Each year Northrop Grumman recognizes standout teams through the
and implements strategic initiatives to support our programs.
Excellence Awards and the Simon Ramo Awards for Systems Engineering
Our corporate leadership reviews customer satisfaction and quality metrics on a Excellence, the company’s highest honors. In 2021, we recognized
monthly basis to ensure we remain mission driven. We supply additional oversight fourteen teams for their extraordinary performance and contributions
and resources to programs that do not meet performance expectations. We also to the company. Harnessing the power of tools like digital engineering,
provide teams with guidance on developing and executing a “return to green” artificial intelligence (AI), and Agile frameworks, these diverse teams are
plan, corporate engagement with partners and suppliers, and regular meetings demonstrating extraordinary innovation. See more information on two of
between corporate executives and program leaders. our award-winning teams below:
Systems Engineering Excellence Award:

Dogfish Program
We are proud to report that we exceeded our
The Dogfish team pioneered the development of a suite of processing
quality and customer satisfaction targets in 2021.
algorithms and an open architecture with first time on-orbit demonstrations
of capability that support Northrop Grumman leadership in systems
engineering and artificial intelligence/machine learning technology.
The developing technology is setting the foundation for our processing
Non-Financial Performance Metrics building block approach and incorporating more open architecture
standards, working in collaboration with government and industry to
Customer Satisfaction: Customer feedback, including reduce development cost and increase speed to delivery for on-board
customer-generated performance scores, award fees and space processing applications.
verbal and written feedback
Quality: Program-specific objectives, including defect rates,

Excellence Award: Mosquito Team
process quality, supplier quality, planning quality or other
To design and manufacture a prototype of the United Kingdom’s first
appropriate criteria for program type and phase
uncrewed fighter aircraft, the joint United States and United Kingdom
Mosquito Team incorporated digital engineering, scaled Agile framework
and model-based systems engineering. In Phase 2 of the program, the
interdisciplinary team will be working to rapidly mature the design and
manufacture a working technology demonstrator.

PRODUCT SAFETY also leading industry airworthiness training and education 5,300 people during 2021. Our efforts supported our
standardization with the development of standards domestic and international portfolios, and we held our
Northrop Grumman helps protect our customers by
through the Aerospace Industries Association. In 2021, no first international Lean-Agile Practitioners’ Summit.
providing safe, reliable and quality systems. Our processes
new military or civilian airworthiness directives, bulletins or
include our QMS, corporate systems engineering policy and We continue to train and communicate with employees
similar had an impact on production deliveries.
individual program system safety plans. about digital transformation and Agile system
development, increasing adoption and awareness across
We address a variety of potential hazard sources — USHERING IN A DIGITAL our departments. Northrop Grumman is continuing to
including hardware, software, environmental and
TRANSFORMATION embed Agile into our culture with long-term Agile career
organizational — through individualized system safety
As the defense industry undergoes a digital transformation, paths and a digital Agile ecosystem.
plans for each program. These safety systems also apply
Northrop Grumman is looking to lead the way, designing,
to our partners and suppliers to help ensure safety
testing and deploying our systems faster to meet the evolving
performance throughout our value chain.
needs and expectations of our customers. Our Corporate
Our team of experienced safety engineers oversees these Operations Council (COC), made up of vice presidents
programs and applies industry best practices to identify, representing each business unit, provides governance
analyze and manage risk. The engineers track safety risks, strategies to initiate change across the company. In 2021,
provide oversight when they conduct hazard analyses on our COC continued to focus on the digital transformation
programs, ensure compliance with applicable standards of our processes across all departments, working closely
and work closely with customer and regulatory safety with a newly established Digital Transformation Office
personnel to communicate and address any residual risks. (DTO). The DTO is responsible for accelerating adoption of
digital integrated capabilities and culture in all aspects of
HIGHLIGHT STORY
Assessing Airworthiness how we do business. Our success as a partner in digital
Cultivating Intellectual Property transformation builds on our expertise in digital engineering,
Airworthiness continues to be an integral aspect of product Development Security and Operations (DevSecOps), artificial
Northrop Grumman is an industry leader in developing
safety for the air systems’ hardware and software, produced, intelligence/machine learning, advanced manufacturing
and deploying critical intellectual property. In 2021
procured, managed and sustained by our teams. In 2021, open architecture woven with Lean-Agile methodologies.
we adopted a Patent Ambassador program. Patent
Northrop Grumman published the CO-AW100 “Airworthiness
Ambassadors motivate and assist employees with At Northrop Grumman, Lean and Six Sigma are
Enterprise Governing Procedure” that empowered an
the development and submission of their ideas foundational pillars for sustainable performance and
airworthiness lead department to oversee cross-department
into our invention disclosure tool. Through this tool, continuous improvement. Our Lean-Agile Centers of
compliance to military/civil airworthiness regulations.
invention authors receive credit and recognition for Excellence continue to build upon the progress made
their invention disclosures, as well as other qualitative We are embracing the digital transformation of previously in adopting Agile system development
benefits and monetary rewards. Through this added airworthiness, evolving to a model-based approach and techniques and mindsets. Our continued focus on Agile
incentive, we encourage growth and development of a digital certification database that is integrated into a systems is reducing bureaucracy and enabling continuous
our employees as we foster an innovative culture and common enterprise-wide platform. This helps us to stay improvement in quality throughout our business. Our
spirit across Northrop Grumman. aligned with customers’ expectations for modern and Lean-Agile framework supports $20 billion in our business
agile airworthiness compliance. Northrop Grumman is pipeline and we have invested over 90,000 hours in training

HIGHLIGHT STORY
Defining Possible:
James Webb Space Telescope
With the launch of NASA’s James Webb Space Telescope (Webb) on Dec. 25, 2021,
Northrop Grumman is making the once unimaginable a reality. NASA’s flagship
observatory will usher in a new era of scientific discovery and will help advance
humanity’s quest to answer compelling questions such as, “How did the universe
begin?” or “When were the first stars and galaxies created?” or “How do planets
form?” and “Are we alone?” Webb is a one-of-a kind scientific instrument incorporating
innovative design, advanced technology and groundbreaking engineering.
One hundred times more powerful than its predecessor, the Hubble Telescope,
Webb will expand our understanding of the universe, rewrite textbooks and inspire
future generations of engineers and scientists. As the prime industry lead on Webb,
Northrop Grumman employees used their talent, ingenuity, drive and commitment
to undertake this remarkable feat. Building Webb was an international endeavor
spanning more than 20 years, 14 countries, 29 U.S. states and over 300 companies,
universities and organizations. Thousands of engineers, scientists and technicians
from around the world dedicated millions of hours to develop, design, build and
launch Webb into space.
The flagship observatory traveled one million miles away from Earth and is
positioned to peer back over 13.5 billion years to study how the first galaxies
formed after the Big Bang. It will examine unexplored planets that orbit distant stars.
In developing the most powerful and complex space observatory ever built, our
engineers pushed the limits of technology and developed ten new inventions for
the telescope, including revolutionary optics, detectors and thermal control systems
that will also help improve life on Earth and support future astronomical endeavors.
Although the telescope has left the Northrop Grumman facility and the earth itself,
we eagerly await the discoveries it will make over the coming years. Webb’s road
to launch has been a poignant moment for our mission to define possible.

INNOVATING RESEARCH as industry and academic partners to build policies for
& DEVELOPMENT implementing responsible AI and to refine our approach

to AI development, testing and operations. This is to help
Northrop Grumman innovation transforms the impossible
us continue to meet the highest ethical standards and
into reality. Through the integration of emerging technologies
expectations set by our values and our customers.
into our already proven systems and services, we’re ensuring
continued success of the most complex missions our nation Looking to the future, operationalizing AI in a responsible
and its allies will face going forward. We strategically way is of utmost importance. We recognize the unique
invest in Research and Development (R&D) to create cutting opportunity that AI presents to enable our products
edge technologies. The current company-sponsored R&D and systems to perform at unprecedented levels, and
investment is $1.1 billion annually. Our workforce culture continually adapt to the fast-evolving environment
encourages exploration and experimentation. around them. As we continue to push the boundaries of
AI development and integrate it into our business, our top
Our R&D portfolio empowers Northrop Grumman
priority will continue to be delivering this technology to our
technologists and researchers to deploy innovations within
customers in a safe, effective and ethical way.
and across each of our business departments. Northrop
Grumman’s company-wide approach to R&D management For more information, please visit our AI Ethics website. HIGHLIGHT STORY
has fostered a culture driven by data to lead decision
Northrop Grumman
making across our technology investments. It also allows University Research Systems Invests in Virginia Tech’s
our departments to gain new insights into the nature,
direction and technology of our R&D portfolio. We build and foster new relationships with our university Innovation Campus
partners to help prepare for the future. These strategic
In 2021, Northrop Grumman made a $12.5 million
The Northrop Grumman Corporate Technology Council, partnerships shape the curricula, critical skills, credentials
donation to help establish a new Center of Quantum
and our department-level technology, strategy and and research applications that our nation’s workforce and
Architecture and Software Development at Virginia
functional offices, work together to identify and support our industry need to increase our technological capacity.
Tech. The Center will advance teaching, research and
enterprise campaigns and investment focus areas that In 2021, we had research partnerships with more than
talent development to support quantum science and
define success for our customers’ most critical missions. 30 global universities. As Northrop Grumman grows, we
engineering. Northrop Grumman’s funding will also
seek to cultivate potential pipelines for talent and create
support programs to engage K-12 students, with a
Responsible Artificial Intelligence (AI) opportunities for our teams to work closely and exchange
focus on underrepresented groups, to help shape a
ideas with both students and academic professionals.
AI is fundamentally changing the way we work and more inclusive talent pipeline in the high-tech sector.
the way our solutions perform. AI presents us with an In 2021, we continued to grow our university research
With this investment, we were one of the first anchor
opportunity to harness advanced technologies to enhance programs and enhanced our ability to capture, track and
partners in Virginia Tech’s Innovation Campus,
performance for next-generation mission solutions. With assess data. Our teams that coordinate university research
an ongoing effort to build a diverse generation
that opportunity comes the responsibility to develop our work closely with the recruiting team also to maximize
of engineers, scientists and technologists to drive
AI products and systems ethically and securely. In 2021, we relationships for talent acquisition. As our research interest
critical research.
worked with government and trade organizations as well continues to grow, we expect that universities will remain
an integral avenue of R&D.

TECHNOLOGY FOR CONSERVATION
Technology for Conservation (T4C) pairs Northrop Grumman engineers with conservation partners to tackle some of the toughest challenges facing ecosystems and wildlife. T4C teams
provide guided access to innovative technologies that conservationists need in harsh or remote conditions. These partners gain access to advanced systems suitable for their needs, while
Leveraging T4C
our employees get the opportunity to work in an incubator setting to hone and develop their skills in a way that makes a positive impact on the environment and in their communities. Northrop Grumman also supports other organizations
that leverage technology and innovation for solving
To learn more, please see the T4C page on our website.
conservation issues and provide resources to teach
these concepts in the classroom.
Mentoring Student Buoy Builds
In a program sponsored by Northrop Grumman

and mentored by T4C team members, James
Madison University sophomores are creating
self-sustaining buoy platform prototypes with a
sensor suite and data acquisition system capable of
monitoring oyster reefs and tracking sea turtles. For
many of these students, the project is an introduction
into engineering principles, design and working
with a “customer.”
EarthEcho Teaching Resource
T4C teams worked with EarthEcho to develop online

STEM coursework and learning resources for middle
school teachers to use in their virtual classrooms.
Oyster Monitoring Challenge Turtle Tech Freshwater Co-Benefits Explorer AI Tool for Extinction Prevention
T4C teams have successfully deployed, tested A T4C team is developing sensor data technology Software engineering interns developed an Northrop Grumman is supporting Conservation X
and integrated the components of the system that can detect, identify and track sea turtles along online tool to monitor freshwater contributions in Labs by deploying their Sentinel System Artificial
for remotely monitoring reef health to support the Florida coastline. Turtle Tech aims to field this rivers and tributaries and analyze the impact of Intelligence platform to camera traps in Gorongosa
oyster restoration in the Chesapeake Bay. The system in 2022, with self-sustaining support from protected areas on water quality. The tool will help National Park (Mozambique) and Odzala-Kokoua
team’s intent is to hand the system over to the university partners that can operate, maintain and stakeholders make informed decisions about land National Park (Democratic Republic of the Congo)
conservation partner in 2022. enhance it. use and protection. for real-time detection of rare, vulnerable or invasive
species or poachers.
Partner: Chesapeake Bay Foundation Partner: Brevard Zoo Partner: Conservation International

Pioneering
Performance
OPTIMIZING OPERATIONS
The processes, systems and practices that underlie our business operations
and sustainability mindset are built on the Values that guide us every day.
We ensure that our corporate governance, performance and compliance
measures meet or exceed what is required. We apply these standards to our
overall ESG strategy and extend them to additional vital areas of operations,
from supply chain to resilience to data protection, in ways that reflect our
dedication to excellence.
NORTHROP GRUMMAN Pioneering Performance 23

Company Performance Governance To help ensure that it operates effectively, adapting to the
needs of our company and our changing environment,
In 2021, the board held ten meetings both in person and
virtually, including a meeting focused on reviewing
We assess the performance of our company using Maintaining the highest standards of corporate governance, the BoD conducts annual assessments at each of the full long-term strategy.
a comprehensive set of measures important to our ethics, integrity, equity and compliance is core to our board, committee and individual levels. We believe this is
very much a best practice. The lead independent director
shareholders, customers and employees. We consider culture and our performance. We provide our employees RISK OVERSIGHT
both financial and non-financial metrics in tracking our and business partners with the tools and opportunities to or the chair of the board’s Governance Committee meets
with each non-employee director individually to discuss The BoD oversees our enterprise risk management
progress. Our financial performance metrics include speak up, and we empower them to act with integrity in
the results of their individual assessment. We require our and each of our board committees assists in this role,
measures of operating margin dollars and rate, net compliance with all ethical and legal responsibilities.
directors to have a significant financial interest in Northrop providing its expertise. The board also receives reports
income growth and cash from operations. Since 2010,
Grumman through stock ownership to further align their on our Enterprise Risk Management Council, which seeks
we have incorporated non-financial performance
BOARD OF DIRECTORS interests with those of the company’s shareholders. to ensure we have identified and understand the more
metrics into our annual incentive compensation
The members of Northrop Grumman’s Board of Directors significant risks facing our business, and that we have
program, exhibiting our continued commitment to our
The board regularly holds its meetings at company effective mitigation measures in place to address them.
environmental, social and governance (ESG) priorities. (BoD) come from diverse backgrounds, with a wide
locations other than our corporate headquarters. These
In 2021, we achieved a score of 130% on our Company range of skills and experiences that enhances the overall
visits provide the directors with a first-hand view of different
Performance Factor. Overall, we met or exceeded our effectiveness of our board and promotes the interests
elements of our business and an opportunity to interact with
financial and non-financial goals. Comparatively, our of our shareholders. As of Dec. 31, 2021, the BoD was
local management and employees at various levels.
scores were 143% in 2020 and 167% in 2019. composed of 13 directors, 12 of whom are independent.
2021 REVENUE BREAKDOWN ANNUAL SALES BOARD OF DIRECTORS DIVERSITY*
$35.7 BILLION 31%

women on the board
EMPLOYEES
86% U.S.
88,000 23%
14% International people of color on the board
7.7
SQUARE FEET OF FLOOR SPACE
51 MILLION years of average tenure on the board
* As of Dec. 31, 2021

ESG OVERSIGHT For more information regarding the BoD and the roles and
responsibilities of its standing committees, please see our
Our BoD provides strong leadership and oversight for
2022 Proxy Statement and our committee charters on the
our ESG practices, with regular input from management.
Northrop Grumman website.
For example, the Board’s Policy Committee oversees the
company’s environmental program, including net-zero,
water and waste plans; receives updates from the Chief
Sustainability Officer; and oversees climate change risks,
TCFD evaluations and our annual sustainability report. The ANNUAL HIGHLIGHTS
Policy Committee also oversees our commitment to human
rights and health and safety programs. The Audit and Risk
■ All board committees comprised entirely of
Committee assists the Board in its overall financial and
independent directors
enterprise risk management responsibility, including review
■ Annual election of all directors
of the company’s financial risks, as well as risks pertaining to
anti-corruption, nuclear, natural, and environmental matters ■ A lead independent director with significant and clearly
and the company compliance program. The Compensation defined responsibilities
Committee oversees the Diversity, Equity and Inclusion (DE&I) ■ Majority voting for directors in uncontested elections
program, approves DE&I goals and non-financial metrics with a director resignation policy if a director fails to
in compensation, and oversees our approach to human receive a majority of votes cast “for” their election
capital risk and talent management. The Compensation ■ Proxy access bylaw provision, providing for eligible
Committee receives regular updates from the chief human shareholders to include their own director nominees in
resources officer and vice president of global corporate Northrop Grumman’s Proxy materials
responsibility. The Governance Committee oversees our
■ Annual board, committee and director self-evaluations
corporate governance; the make-up and effectiveness of
■ Ability of shareholders to act by written consent
our BoD, with a focus on diversity and succession planning;
and engagement with our shareholders, including on ■ Ability of shareholders to call a special meeting
shareholder proposals. ■ Ability of shareholders to communicate and meet

directly with our management and directors
The full board receives detailed reports from its committees
■ Annual advisory vote on executive compensation
and management, meets with employees across our
business and carefully considers the full range of issues that ■ Recoupment policy for incentive compensation
fall within our sustainability program. ■ Stock ownership guidelines for directors and
executive officers
To enhance accountability for ESG performance, our
■ Policy prohibiting hedging, pledging and other
corporate non-financial performance metrics influence the
specified derivative transactions involving Northrop
annual incentive compensation for Northrop Grumman’s
Grumman stock by directors, executive officers and
senior leaders. Please see the performance criteria listed in
those receiving performance-based compensation
the Company Performance section.

anticipate and mitigate risks. Our compliance team is
dedicated to continuous improvement, working to improve
effectiveness and efficiency.
Additionally, we are diligent in assessing third parties such

as sales representatives, partners, consultants, suppliers and
teammates. We expect our partners to share our commitment
to doing business with the highest levels of ethics and integrity,
and complying with applicable laws and regulations. As
articulated in our standards of business conduct for suppliers
and other trading partners, we also require our partners and
suppliers to share our commitment to human rights.
2021 HIGHLIGHTS
Compliance Among other things, the Compliance Council: ■ Addresses the potential impact of the pandemic recovery ■ Facilitating the global review and translation of
and hybrid working environment on company culture company policies and procedures to ensure they are
■ Provides leadership and guidance on effective and
Our strong compliance program, founded in our Values and ■ Helps to ensure that compliance is well integrated into appropriate and enforceable where the company
agile internal policies, procedures and processes,
reaching across our enterprise, enhances our performance the company’s operations conducts business
helping ensure they are accessible globally to our
and helps to enable our long-term success. Located within ■ Regularly evaluates and adapts the company’s ■ Developing educational awareness modules specific
employee base
the company’s law department and reporting directly to the compliance program to reflect the changing nature of to Northrop Grumman’s critical compliance risks
■ Meets regularly to identify and assess compliance risks,
General Counsel, the Northrop Grumman Chief Compliance our business, our long-term objectives, our customers’ complementing the annual ethics training
and to evaluate the continued effectiveness of the
Officer and his team promote and facilitate a company evolving requirements, our shareholders’ interests and ■ Working with Human Resources and Ethics to enhance
company’s system of policies and procedures, as well as
culture of high integrity and ethics and compliance with all the global environment our global onboarding practices during the pandemic
the compliance program itself
applicable laws, helping us to achieve our strategic goals.
and considering remote working practices
The team works closely with functional and operational ■ Monitors changes in the regulatory environment Integrity and compliance are the responsibility of every
■ Substantiating and documenting the company’s
teams across the company to identify, assess, manage and and supports effective implementation of new or employee at Northrop Grumman and we depend on
global compliance with anti-human trafficking laws
mitigate compliance and ethics risks and ensures internal revised compliance plans to address evolving legal each of our employees to reflect our Values and culture,
and regulations
controls are effective. Our Chief Compliance Officer chairs requirements in the U.S. and globally and to do the right thing, for themselves, their colleagues,
■ Updating the annual compliance assessment process
the company’s Compliance Council, which includes senior ■ Promotes a speak-up and psychologically safe culture our customers and our shareholders. Our internal teams
representatives from Internal Audit, Human Resources, for company leaders
(in collaboration with Ethics, Human Resources and other oversee comprehensive policies and procedures, provide
Finance, the Sustainability Office, Security, Quality, Digital functions) enhancing performance and helping enable resources for clearer guidance and hold employees ■ Supporting the launch of the AI ethics working group in
Transformation, Ethics and Global Corporate Responsibility, employees to report issues without fear of retaliation accountable. These efforts are cross-functional, drawing conjunction with Northrop Grumman’s AI Campaign as
and all four of our operating sectors. upon the diverse expertise of subject matter experts to well enterprise-wide Digital Transformation initiatives

Ethics & Responsible Our Ethics team develops and implements our strategy and
initiatives to drive an ethical culture throughout our company.
ETHICS TRAINING BUSINESS CONDUCT ADVISORS
Business Practices We provide our employees with guidelines and resources to

Our annual ethics training reinforces the company’s
commitment to ethics and keeps employees informed and
Northrop Grumman has more than 130 business conduct
advisors (BCAs) located at major company sites around
both understand and do what is right, make ethical decisions,
At Northrop Grumman, ethics factor into our daily work updated on our high ethical standards and obligations. Our the globe. BCAs are full-time employees nominated and
and support compliance with company policies, procedures
beyond compliance considerations. Doing the right thing is program begins with ethics onboarding for new employees selected for this additional assignment by their leadership
and legal requirements. Our ethics are reflected in our
the first of our company Values and central to our overall and requires annual ethics refresher training for all full and and the corporate ethics office because they are well
Values, the Standards of Business Conduct and leadership
culture. We count on each employee and business partner part-time employees. respected and demonstrate high ethical standards. They
behaviors. These are available in several languages to make
around the world to lead with honesty and integrity; doing are key stakeholders in promoting ethics awareness to
them more accessible for our global population. Please ■ Ethics training for new employees covers key topics
so together helps us create a work environment where management and employees, coaching colleagues
see our Ethics and Business Conduct webpage for more including our standards of business conduct, time and
everyone is empowered to speak up, and to perform at through ethical dilemmas, raising concerns and potential
information on our policies and practices. labor charging, business courtesies, conflicts of interest
the highest standards. This is fundamental to achieving risks to their departments or the corporate ethics office and
and the revolving door policy. All new hires must
our goals, complying with requirements and consistently We maintain full-time ethics directors and advisors at the responding to questions and concerns from employees.
complete this training.
delivering excellence to our customers. business unit level to assist in implementing our program
■ In 2021, we launched an online, interactive ethics In 2021, we evaluated the location requirements for BCAs
and initiatives. In 2021, we realigned our ethics investigators
refresher training course that connects our company to ensure all employees, including our growing virtual
to the business unit level to better manage emerging
Values to key topics. The course covers our Standards workforce, have proper resources. We also hosted a
trends and provide timely and proactive support where it
of Business Conduct, social media, time-charging two-day global virtual workshop for the BCA community
is needed. In addition, we established a Compliance and
consistency, quality, insider threats, conflicts of interest with content that included “Living Our Values in Customer
Ethics Investigations Change Control team to enhance
and ethical decision-making. Printed training materials Engagement,” “Culture, Risk and Compliance: Trends and
consistency in our ethics investigation processes.
are made available to manufacturing and production Predictions” and “Civility and Respect in the Workplace” as
Standards of OUR “SPEAK-UP CULTURE”

employees who do not have access to a work computer well as briefings from key stakeholders and Ethics partners.
Through monthly BCA meetings and the BCA Share Center,
and the training has been translated into Dutch, French,
Business Conduct We are dedicated to ensuring our employees feel safe to German, Italian and Arabic. we provide updates on ethics initiatives, trends and
speak up, share ideas and challenge how things are done additional resources to support their role and responsibilities.
without fear of retaliation. Employees may raise concerns All employees must certify at the completion of the training
Northrop Grumman is also active in the Ethics and
and ask questions through their managers, members that they are familiar with and will abide by the Northrop
Compliance community outside our company, to promote
of our Human Resources or Law departments, business Grumman Standards of Business Conduct. In addition,
ethics and integrity throughout the global defense industry
conduct advisors or the global OpenLine reporting system. each year we require our U.S. employees and many of our
and beyond. Please see the list of partnership organizations
We encourage employees to seek guidance on ethics international employees to certify that they do not have any
in the Appendix.
questions and report possible violations of our Standards of new or undisclosed conflicts of interest.
Business Conduct, the law or company policy.
More than 99% of our full and

part-time employees completed
ethics training in 2021.

NORTHROP GRUMMAN OPENLINE
The OpenLine is a toll-free, third-party phone number available 24/7, where
Northrop Grumman employees, business partners, suppliers and other
stakeholders can seek guidance on ethics questions and report any concerns
or potential violations of law, regulation or company policy without fear of
retaliation. OpenLine numbers are available for all employees to speak to a
representative in their native language. Web-based reporting is also available to
employees in locations where it does not conflict with local laws.
To efficiently address and resolve OpenLine contacts, we first categorize them as

either inquiries, business conduct allegations or employee relations concerns.
■ We assign inquiries to subject matter experts. These questions typically call

for a response based on Northrop Grumman’s policy or procedures. Most
inquiries relate to business courtesies and conflicts of interest.
■ Ethics investigators handle most business conduct allegations, such as matters

relating to suspected fraud, waste and abuse. The most serious allegations
may be referred to the law department for investigation. Employee relations
investigators typically address reported cases of employee misconduct and
employment practices.
2021 ALLEGATIONS & INQUIRIES 2021 ACTIONS TAKEN AS A RESULT OF
Approximately 40% of contacts including allegations of wrongdoing were INVESTIGATIONS SUBSTANTIATED IN
substantiated, in whole or in part. This compares with 34% in 2020. A total of 492 WHOLE OR IN PART
actions were taken as a result. The percentage of substantiated allegations,
at least in part, was lower than the NAVEX 2021 Ethics & Compliance Hotline
Benchmark Report figure (42%), which includes over 3,000 companies. Employees Coaching or Counseling 172
or other parties who contact us through the OpenLine typically share their name, 1,024 Employee Relations Allegations
2,188
Terminations 130
but they have the option of remaining anonymous, entirely at their discretion. In
2021, anonymous contacts were at 41%. In comparison, the NAVEX report average 587 Business Conduct Allegations Memo of Expectations 90
for anonymous contacts was 58%. total contacts
Written Warning 88
We analyze OpenLine metrics quarterly to identify trends and areas of potential 577 OpenLine Inquiries
concern and we share findings with the Corporate Ethics Committee, which Verbal Warning 8
consists of members of the Executive Leadership Team, and also with other
senior leaders, external auditors and the Audit and Risk Committee of our BoD. Suspension & Demotion 4
We provide department and site leadership with quarterly OpenLine metrics and
TOTAL 492
address trends through leadership actions, including targeted communications
and additional training.

ETHICS COMMUNICATIONS ANTI-CORRUPTION COMPLIANCE POLITICAL INVOLVEMENT
Throughout the year, we use a variety of engagement channels to highlight the We have long maintained a best-in-class global anti- Northrop Grumman engages in the democratic process
importance of ethics and integrity in the workplace. Here’s what was included in 2021: corruption compliance program. It is essential to our in a variety of ways. The company’s chief strategy and
success as a trusted supplier for our customers, a reliable development officer manages political activities, including
Q1 performer for our shareholders and an employer of choice lobbying, and reports directly to the chief executive officer.
for our workforce. We require all of our employees and Our BoD Policy Committee also reviews and oversees the
■ Annual message from CEO Kathy Warden affirming Northrop Grumman’s position on ethics
those with whom we do business to maintain the highest company’s political activities.
■ Q1 Ethics newsletter, “Conquering the Fear of a Difficult Conversation” encouraging our ethical standards in full compliance with all applicable
speak-up culture Political activities are conducted in accordance with
anti-corruption laws. We have zero tolerance for bribes,
all applicable laws, our company Values and ethical
kickbacks or any other illegal business practices. We require
Q2 our employees to ask questions and raise any concerns they
standards. Policies, approval procedures and required
disclosures for involvement in political activities are clearly
may have regarding ethics and compliance issues. Please
■ Q2 Ethics newsletter, “Cat Got Your Tongue?” with tips for finding the courage to speak up stated and available to employees.
see our Anti-Corruption Compliance webpage for details on
■ Deployed our annual training for employees to further connect our company Values to key
the various elements of our program. We are proud to have been recognized by the Center
ethics and compliance topics
for Political Accountability (CPA) and the Zicklin Center for
PRODUCT SALES Business Ethics Research for our transparency, policies and
strong disclosure practices related to political expenditures.
Q3 We also have robust procedures to ensure we do not
Based on voluntarily disclosed information, the Zicklin Index
conduct business in countries or with customers who are
■ Q3 Ethics newsletter, “Work What You Charge, Charge What You Work” covering accurate measures electoral spending transparency and w among
not properly approved by the U.S. government, or, even
timekeeping the largest corporations in the U.S.
if permissible, where the risk — to human rights or, more
■ Ethics Awareness Month content, which highlighted the importance of ethics and integrity broadly, the reputation of the company — is too significant, Additional information about the company’s political
in the workplace and cannot adequately be mitigated. We focus on doing activity practices as well as links to publicly available
■ Shared Ethics Pledge with employees, which offered an opportunity to voluntarily reaffirm business that aligns with our company Values and applicable disclosure reports can be found on our Political
a commitment to our ethical culture and company Values laws. We incorporate our ESG responsibilities and customer Contributions webpage.
support into decision-making, including the products we
Q4 design, develop, manufacture and sustain. Northrop

Grumman does not manufacture or sell cluster munitions, anti-
■ Q4 Ethics newsletter, “Unshakable Focus on Quality,” supporting the annual training on quality personnel mines or chemical or biological weapons. Northrop Grumman was one of 14
■ Leadership messaging on business courtesies during the holiday season. companies to receive a 100% score in
the CPA-Zicklin Index in 2021, and the
only aerospace and defense company.

HUMAN RIGHTS LABOR RELATIONS lower tier subcontracts, continuing to prohibit trafficking
in persons and the use of forced labor. More broadly,
Northrop Grumman is committed to maintaining a strong Across our enterprise, we are committed to strong
we provide our employees and suppliers with targeted
culture with a deep respect for individuals and human management practices for our employees. Currently,
training and awareness regarding the global problem
rights. To that end, we have a robust and wide-reaching collective bargaining agreements cover approximately
of human trafficking and forced labor through online
Human Rights Policy, as well as other company policies, 4.4% of Northrop Grumman employees in the U.S. At our
training modules, communication campaigns, newsletters,
practices and procedures to reflect and implement our facilities, employees are free to exercise their rights of
posters at applicable work sites and postings on Northrop
commitment. Much of our Policy is focused on how we freedom of association and collective bargaining, and we
Grumman websites. Both our Anti-Human Trafficking and
treat individuals, especially with respect to their human work to maintain positive relationships with the third-party
Slavery Statement and Anti-Trafficking Supplier Letter
rights. Our policies address discrimination, harassment and organizations who represent our employees. We engage
and Training are publicly available on our Anti-Human
retaliation; they also cover freedom of association, fair in constructive negotiations on labor topics that include
Trafficking Compliance webpage.
working conditions, ethical procurement practices, health wages, schedules and hours, job progression, training
and safety and the protection of the environment. Our and education, health and safety, non-discrimination
Policy also addresses how we do business, including how and benefits, including employee assistance resources. RESPONSIBLE SOURCING OF
we develop and provide our goods and services, and how These negotiations help our company reach collective MINERALS/CONFLICT MINERALS
we work with our supply chain. agreements that benefit our employees.
We are committed to the responsible sourcing of minerals
in our supply chain and routinely take steps to ensure that
We have established a Human Rights Working Group to
help ensure our Human Rights Policy is being implemented ANTI-HUMAN TRAFFICKING suppliers comply with applicable laws and regulations
effectively and achieving our objectives. The general & FORCED LABOR regarding conflict minerals (i.e., tin, tantalum, tungsten and
gold). As required, we report any known or potential use
counsel or her designee leads the working group, which We have zero tolerance for human trafficking or forced
of conflict minerals to the U.S. Securities and Exchange
consists of senior representatives from Global Corporate labor and are committed to eradicating both from our
Commission. We also regularly review our process for
Responsibility, Human Resources, Legal, Global Supply Chain, supply chain. With a detailed Supplier Code of Conduct, we
opportunities to improve our conflict minerals due diligence
Investor Relations, Contracts, Environmental, Health and require our suppliers to comply with all applicable local
and oversight practices. Please see our Conflict Minerals
Safety (EHS), Global Business Office, Government Relations, laws in the country or countries in which they operate,
Statement as well as our 2021 Conflict Minerals Supplier
Communications and each of our four operational sectors. our ethical standards and our contractual terms and
Communication, both available online.
conditions, which explicitly prohibit trafficking of persons
Our Board of Directors provides comprehensive oversight
and the use of forced labor. We require our suppliers to
of both our policy and our practices. The Policy Committee,
incorporate such contractual terms and conditions into their
in particular, oversees our human rights program,
including reviewing and making recommendations for
enhancements, as appropriate. The Policy Committee
receives reports from the chair of the Human Rights Working
Group, our vice president of global corporate responsibility
and our general counsel on how we are implementing our
Human Rights Policy, as well as any areas of concern or
suggestions for improvement.

Business Continuity & Global Supply Chain social responsibility and regulatory compliance in areas
including, but not limited to: equal employment opportunity,
Operational Resilience The success of our supply chain is integral to our team’s affirmative action, cybersecurity, conflict minerals,
efforts to define possible, and we understand that our counterfeit parts, anti-human trafficking, harassment and
Business practices at Northrop Grumman extend from diverse supplier base is key to our continued growth and discrimination and international trade.
standards to systems and programs that allow us to pivot leadership in supply chain management. The high-quality
For more information about our work to prevent human
quickly and address challenges. This was critical in 2021, raw materials, products and services they provide help us
trafficking and forced labor within the global supply chain,
as we responded to the ongoing COVID-19 pandemic, as to deliver the most cutting-edge solutions to our customers,
please see the Human Rights section of this report.
well as natural disasters and supply chain disruptions. We and generate shared value.
require each sector of our business to have an effective
security program in place that considers relevant risks
HIGHLIGHT STORY SUPPLIER RESPONSIBILITY
and vulnerabilities, including emergency response, crisis
Awards for Industrial management, IT disaster recovery and business recovery We manage our broad-based supply chain with a focus
Security Achievement and resumption. Our company-wide security compliance on performance, risk management and transparency.
Northrop Grumman suppliers act in compliance with all
framework is an industry best practice that we share
Six Northrop Grumman facilities received the
applicable laws, regulations and contract terms, including
with suppliers and industry peers. We work to protect
prestigious James S. Cogswell Outstanding Industrial
adherence to our standards of business conduct for
and secure our personnel, resources and information
Security Achievement Award from the Defense
suppliers and other trading partners. We expect our
and, as required, that of our customers and suppliers,
Counterintelligence and Security Agency (DCSA).
suppliers to uphold our commitment to operating as
while complying with customer, federal, state, local and
Out of nearly 13,000 cleared facilities eligible for
responsible stewards of the environment. Our enterprise
risk management requirements. We maintain program
recognition, the company was recognized for
terms and conditions include a provision that suppliers
readiness by ensuring our staff members have expertise in
excellence at facilities in Chandler, Arizona; El
and other trading partners comply with our standards of
a variety of customer requirements.
Segundo, Northridge and Sunnyvale, California;
business conduct as a condition of doing business. These
Melbourne, Florida; and Ocean Springs, Mississippi.
standards apply to our suppliers at all tiers, as well as those
who work for them, and encompass a variety of topics
Selection criteria for the annual award includes Our security programs and
including ethics and integrity, labor and employment
establishing and sustaining security programs that emergency response planning help
practices, diversity and inclusion, human rights protection
exceed industry standards and providing leadership
protect our people, information, and sustainability. If a violation of these standards occurs,
to other cleared facilities while establishing best
assets and brand, as well as continuity we reserve the right to terminate our contract.
practices to maintain the highest security standards.
Facilities are nominated by a DCSA industrial security
of mission.
We support our suppliers in many ways, which includes
representative and are required to have at least
providing supplier-specific training materials and resources
two consecutive superior industrial security review
through our online Supplier Portal. This portal helps us better
ratings to be considered. This award highlights our
engage and collaborate with our suppliers, facilitating
long-standing dedication to providing security
long-term, mutually beneficial relationships. We regularly
excellence for our customers.
communicate and engage with our suppliers regarding

SUPPLIER PERFORMANCE Our supplier rating and evaluation processes help us CONTINUED SUPPLY CHAIN
To help ensure our suppliers are responsible, capable
to identify superior supplier performance to help drive
DISRUPTIONS DUE TO COVID-19
future sourcing decisions and to address potential supplier HIGHLIGHT STORY
and eligible for contract award, we evaluate supplier As the effects of the pandemic continue to ripple through our
performance across several major categories including
performance issues. Evaluations can occur at several points
world, we are monitoring and assessing the impact on our
Mitigated Supply
Chain Disruptions &
including initial onboarding, annually through certification
management, technical, schedule, cost, proposal, mission employees, communities, businesses and supply chain, and
reviews, triennially with full scope reassessments or whenever
assurance, security and cybersecurity, supply chain we remain committed to meeting our customer commitments Equipment Shortages
a business experiences significant changes. These audits help
management and customer satisfaction. Our processes for products, services and solutions. When it comes to our
us to manage product supply chain risks and enable the In 2021, we faced several disruptions, including
require that suppliers comply with applicable industry global supply chain specifically, COVID-19 has continued
development of corrective action plans as required. unprecedented small parcel carrier challenges, labor
standards, are not excluded from U.S. government- to affect various aspects. We have prioritized proactively
availability due to COVID-19 surges, increased fuel
approved subcontracting and uphold our standards of engaging with our suppliers to gain a better understanding
business conduct for suppliers and other trading partners. SUPPLY CHAIN RISK MANAGEMENT of the ongoing challenges they are facing and potential
surcharges, global air constraints, shipping container
delays and crowding at the ports.
We monitor and assess our current and potential suppliers In support of the Enterprise Risk Management Council, the solutions. We have also continued to develop and evolve
across a variety of risk and resilience factors that measure global supply chain risk management team maintains a strategies to provide them with crisis assistance, with a Our Transportation Leadership team and third-party
their overall capability and capacity to meet current formal process for identifying, assessing and managing risks particular focus on small and more vulnerable businesses. logistics provider, Ryder Logistics, established a framework
and expected supply chain demands, with additional that have the potential to disrupt our supply chain. Risks are to monitor industry trends and mitigate transportation
focus on those suppliers most critical to our core business In 2021, we continued to support our critical and small
assessed broadly across 20 characteristics categorized as challenges, which consists of five strategic pillars:
requirements. businesses with accelerated payments, and provided
financial, operational or business. The team uses a data- partnership, infrastructure, forecasting, agility and
personalized outreach to vulnerable suppliers through
driven approach to evaluate both the likelihood and impact communication. Supply chain disruptions were mitigated
Critical supplier criteria include: our supplier-targeted COVID-19 resources. Through these
of each risk. Risk assessments that exceed pre-defined by identifying critical programs, considering safety stock
initiatives, we’ve been able to provide greater support
■ Criticality of program prioritization levels trigger the development and execution of adjustments, accelerating deliveries to meet financial
to our suppliers and their communities. In total, we
■ Past performance enterprise-level risk mitigation strategies. Each risk is regularly targets and contractual schedules and working closely
accelerated payments to over 330 small and vulnerable
monitored to determine changes in assessment levels. This with logistics service providers. We further supported
■ Dollar value and total spending suppliers, positively impacting localities across 42 states.
enterprise approach incorporates insights from a diverse set risk mitigation in supply chain security and compliance
■ Open purchase order value and volume On average, we accelerated $45 million of payments
of stakeholders and data from many different sources, further through data analysis and visualization to drive global
each week, bringing our total to more than $3.5 billion in
■ Sole-source or single-source enabling collaboration across our sectors to ensure that risks supply chain efficiencies. Through government agency
payments since the program began in 2020.
■ Multiple programs are identified and managed at the appropriate level. partner data, we were able to identify import trends,
■ Affordability For details on how we provided support to our suppliers evaluate supply chain cost saving opportunities and
during the initial COVID-19 outbreak, please see our 2020 leverage this information to mitigate risks.
■ Risk/financial health
Sustainability Report.
■ Investments, business agreements and
small business categories
■ Unique technology and strategic partnering

LGBTQ+ community and businesses located in historically
underutilized business zones (HUBZone small businesses).
The GSDP also partners with historically Black colleges and
universities, Hispanic-serving institutions and tribal colleges
and universities.
Through mentoring programs and sponsoring academic,

customer and industry activities, the GSDP supports small
and diverse business growth and development. For more
information, please see the GSDP webpage.
In 2021, we supported the “In this Together” from the

National Minority Supplier Development Council (NMSDC),
providing donations to their rebuilding fund and the NMSDC
business consortium fund. These funds invest in the recovery
and growth of minority businesses.
We also created the Enterprise Strategic Sourcing Council,

which has representation of strategic sourcing and supplier
diversity leaders from each department, to increase
subcontracting opportunities for small and minority
businesses. Our efforts focus on:
■ Leveraging current supplier relationships for training,

subcontracting and mentoring through the Mentor-
Protégé Program
■ Looking at sourcing decisions to explore using nonprofit
TRANSPORTATION & LOGISTICS SmartWay Carrier Partners account for more than 99% of SUPPLIER DIVERSITY organizations for training opportunities
our freight transportation requirements. These initiatives ■ Exploring different ways to engage small and minority
Moving materials, products and people requires Leveraging our influence as a global organization, we
have increased shipment efficiency, decreased fuel usage business through leveraging resources such as our ERGs
energy, and we are pursuing opportunities to improve collaborate with a variety of suppliers, including local
and reduced our Scope 3 GHG emissions. to help identify supplier candidates
efficiency and reduce our GHG emissions associated with companies, to support our business objectives. Our Global
transportation and logistics. Northrop Grumman has been In 2022, we will be migrating our reporting structure and Supplier Diversity Program (GSDP) focuses on expanding
a registered EPA SmartWay Transport Partner since 2008, methodology from a CO2 per ton mile to a volumetric relationships with small and diverse suppliers to add value
and we have since integrated sustainability requirements formula to provide a more precise method of reporting our to our customers through a diverse supply chain. These
into our transportation contracts, consolidated domestic emissions data. As our program matures, we continue to include businesses owned by minorities, women, veterans,
shipments and, where feasible, switched from air freight look for additional opportunities to reduce emissions, such as service-disabled veterans, people with disabilities, the
carriers to ocean freight to help lower CO2 emissions. circular transportation, electric vehicle availability within our
fleet and gathering additional Tier 2 and 3 supplier data.

SUPPLY CHAIN SECURITY In 2021, we continued to make advancements in supplier encourages our international partners to participate in U.S.
cybersecurity by providing more focused training on Customs and Border Protection’s Customs Trade Partnership
Security of our supply chain is important to protecting the
ransomware, implementing dual-factor authentication Against Terrorism (CTPAT) or a relevant Authorized Economic
personnel, resources and information of our company,
for supplier payments and updating our cyber resources Operator (AEO) program. Participation allows for a secure
customers and suppliers. Through effective policies
webpages to encourage continued learning. We maintain supply chain while minimizing potential disruptions,
and procedures, we aim to lessen the burden on small
a public cybersecurity resources website to assist our improving import process predictability and reliability and
businesses and give them the resources to align with our
suppliers in implementing effective information security fostering a high level of trust with the U.S. government and a
security expectations.
measures; please refer to our Cybersecurity Resources for strong partnership with U.S. Customs and Border Protection
We collaborate with government and industry partners to Suppliers webpage for additional information. (CBP). For more information, please see our Global Trade
develop and drive common strategies and standards that Security (CTPAT) webpage.
reduce risks associated with counterfeit material, cyber MATERIAL AUTHENTICITY/

attacks and global trade security. Our company-wide
COUNTERFEIT PARTS
approach identifies and assesses risks across the business
HIGHLIGHT STORY We design our procedures and procurement strategies
with a consistent strategy. Additionally, our program’s
Tuck Diversity
to help detect and prevent counterfeit material from
digital transformation activities will present opportunities
entering our supply chain. Our suppliers are contractually
Business Programs to further develop our approach to supply chain security,
required to maintain full compliance with our counterfeit
particular with low-tier suppliers.
Through our partnership with the diversity business parts prevention processes. Across our company, we
programs at Dartmouth College’s Tuck Executive provide material authenticity training that offers guidance
SUPPLY CHAIN on prevention, detection and mitigation practices to keep
Education, we help companies in their overall
development and business-expansion endeavors.
CYBERSECURITY MODEL counterfeit parts from entering our supply chain. This training
The Tuck Diversity Business Programs include one- Our supply chain cybersecurity maturity model aligns with is delivered to our supply chain, quality, engineering,
week intensive sessions that focus on topics such as the National Institute of Standards and Technology Special program management and receiving organizations.
infrastructure development, strategic thinking and Publication 800-161, Supply Chain Management Practices Additionally, our Counterfeit Material Detection and
goal setting, and provides businesses with the tools for Federal Information Systems and Organizations. Avoidance program requires Northrop Grumman to source
to strategically grow their relationships. Since our This maturity model includes targeted improvements in materials from suppliers confirmed to have appropriate
partnership began in 2001, we’ve sent more than 100 the areas of risk definition, governance, impact levels, counterfeit prevention processes. If an approved supplier is
companies through the program for training and support process, supplier information security, supplier not available, we apply additional quality control measures
development. We’re proud to say that most of those management and incident response. in an effort to validate the authenticity of parts received.
suppliers continue to support Northrop Grumman today.

Northrop Grumman actively participates in the Aerospace
Industries Association Supplier Management Council
GLOBAL TRADE SECURITY
In 2021, we increased our sponsorship from four
businesses in 2020 to 10. We have been able to Cybersecurity working group and the Defense Industrial As a company with global operations and a dedication
deepen our relationships with our suppliers, as well Base Sector Coordinating Council Supply Chain Cyber to security, we are committed to complying with global
as expand partnership opportunities, thanks to their Task Force aligned with the National Defense Information trade security standards. We appreciate the essential role
participation in this program. Sharing and Analysis Center. By participating in these our international business partners play in global trade
groups, we share best practices and provide suppliers with security and encourage integration of enhanced security
additional resources to keep their operations secure. measures in our supply chain. Northrop Grumman also

Cybersecurity & ■ Technology Investment: We protect our computing
environments and products from cyber threats through
DATA PRIVACY provides a more personalized and faster user experience
when they visit our website. Our privacy professionals
Data Protection
We implement leading data protection standards for our
multi-layered defenses. We have invested in cloud monitor emerging global privacy standards to help ensure
stakeholders. We have undertaken a comprehensive
storage and computing power, and we leverage data our practices remain aligned with evolving requirements.
approach to data privacy in order to understand and
We believe in using the best of technology to protect the analytics to detect anomalies and hunt for known
remain in compliance with global, federal, state and local We regularly look to enhance our privacy governance
best of technology. This means leveraging technological threats, which provides greater return for us to reinvest in
laws applicable to our business operations. Our corporate framework through training and awareness initiatives,
advances to protect our systems and data as both our our cybersecurity.
privacy office manages our global commitment to respect effective privacy notices, audits and self-assessments,
business and technology continue to evolve. Cybersecurity ■ Insider Threat: To help safeguard against the potential
the personal information of our employees, customers and access controls, international and third-party supplier risk
plays an integral role in our work, protecting our networks,
theft and misuse of intellectual property and other
other stakeholders. Our website notifies users of the cookies assessments, compliant cross-border transfers of data and
systems, and intellectual property, as well as company,
sensitive information, we maintain an insider threat
we track, which meets global best practices and also other risk mitigation measures.
customer, partner and employee data wherever it resides.
program designed to identify, assess and, as necessary,
address potential risks. Our program evaluates potential
CYBERSECURITY risks consistent with industry leading practices, customer
requirements and privacy considerations.
With vigilance and dedication, we are working hard to
■ Third-Party Risk Assessments: Before hosting sensitive
defend our products and computing environments from
cyber threats. We have supplied our employees with a data in a computing environment managed by a third
range of tools to secure our information, including training, party, we conduct an information security assessment
information-sharing and assessments. To help ensure and implement contractual provisions that mandate
effective oversight, the BoD Audit and Risk Committee security protections.
receives reports on information security and cybersecurity ■ Training and Awareness: We train our employees to
from the vice president and chief information security identify, avoid and mitigate cyber threats as they are the
officer at least four times a year. Key elements of our first line of defense in information security. Employees
information security systems include: participate annually in a mandatory training that
includes spear phishing exercises, while new employees
■ Information Sharing and Collaboration: We
receive cybersecurity training that includes company
collaborate with government, customer, industry and
expectations and first-line-of-defense methods.
supplier partners to gather and develop best practices
■ Supplier Engagement: We collaborate with our
and address cyber threats and enhance the overall
suppliers to help them build resiliency throughout our
security of these partners. Northrop Grumman has taken
supply chain. Northrop Grumman provides training
a leading role in the greater defense industrial base
opportunities and informative cyber updates to tens of
community. We actively participate in the National
thousands of our suppliers to help their systems meet our
Defense Information Sharing and Analysis Center as well
security standards. This program is designed to protect
as other government-industry partnerships that share
our information while also giving small suppliers an
cyber threat information, best practices, awareness and
opportunity to build more mature systems using best
even product enhancements for improved cybersecurity.
practices they may not have access to otherwise.

Pioneering
People
EMBRACING OUR
SUSTAINABILITY PROMISE
Our people are our most valuable resource. The collective talents,
capabilities and strengths of Northrop Grumman’s employees
allow us to discover what’s possible as we boldly expand technical
boundaries. To increase success, the company seeks to provide
the tools necessary for personal and professional development.
NORTHROP GRUMMAN Pioneering People 36

People & Culture
TOTAL POPULATION*
Northrop Grumman’s diverse workforce fosters creativity
and innovation in an inclusive, engaging environment.
We grow because employees find new ways to bring 64.0% White
their experiences with them to their roles each day, learn
from each other, and apply what they discover to create 13.3% Hispanic/Latino
exciting innovations.
36.0%
11.1% Asian
7.4% Black/African American

People of Color
3.5% Two or More Races
24.5% 17.8% 8.5% 0.4% American Indian/Native
Female Total Vets People With American or Alaska Native
Disabilities
0.4% Native Hawaiian/
Other Pacific Islander
LEADERSHIP — TOTAL MANAGEMENT POPULATION* 2021 HIRES*
4,000 3,746
9,054
26.6% 27.7%
external hires
Female People of Color 3,000
2,092
1,940
2,000
LEADERSHIP — VICE PRESIDENT & ABOVE POPULATION* 955

1,000
35.4% 17.7% People Female Veterans People With

Female People of Color of Color Disabilities
* All demographic data reflects U.S. population only

KEY 2021 DE&I EVENTS:
Northrop Grumman puts diversity and inclusion into action by offering employees programming and engagement
opportunities on a wide range of culturally relevant topics. In 2021, we offered 126 individual events to support the nine
heritage months recognized by the company and 224 trainings, engagements and briefings to support inclusion initiatives.
January
■ Enterprise Diversity, Equity & Inclusion Leadership Council Meeting
February
■ Northrop Grumman Awarded Human Right’s Campaign’s Best
Diversity, Equity
■ Heritage Month — Black History
Northrop Grumman has implemented formal diversity Places to Work for LGBTQ+ Equality Award
■ Black Engineer of the Year Award (BEYA) Conference
plans since 2009 to ensure long-term preparations are in
& Inclusion
■ Small Acts of Inclusion Webinar: Social Justice
place to support our critical DE&I function. The plan also Progress & Updates March
helps us set priorities for the organization and demonstrate ■ Heritage Month — Women
We have a long and proud record of advancing DE&I accountability, including with the company’s non-financial ■ International Women’s Day Celebrations
April
throughout our operations and communities. In 2021, we performance metric for diversity. The Compensation ■ Standing in Solidarity (APPN)
■ Heritage Month — Celebrate Diversity
continued to demonstrate our commitment to strengthening Committee of the Board of Directors reviews the company’s ■ National Society of Black Engineer (NSBE) Conference
DE&I by supporting social justice and unity around progress in workforce diversity at least semi-annually. ■ Small Acts of Inclusion Webinar: Raising Kids to be Inclusive May
the world. We also focused on diversity amongst our In 2021, we completed year two of our current five-year ■ Heritage Month — Military Appreciation
employees from all walks of life, with emphasis on growing diversity plan with growth in most areas. The rate of women ■ Heritage Month — Asian American Nation
June
Hawaiian/Pacific Islander (AAPI)
equity among our women, people of color, LGBTQ+ in all leadership roles remained steady from 2020 to 2021 at ■ Heritage Month — LGBTQ+ Pride
■ Northrop Grumman Named to DiversityInc Top 50
employees, veterans and employees with disabilities. 26.6 percent. The rate of people of color in leadership roles ■ Small Acts of Inclusion Webinar: Inclusion
in a Multi-Generational Workforce
increased from 26.6 percent in 2020 to 27.7 percent in 2021.
The Enterprise DE&I Leadership Council (EDEILC) sets our ■ June 19 — Juneteenth Celebrations July
DE&I strategy and serves as the governing body over DE&I ■ Launched DE&I Toolkit ■ Disability:IN Annual Conference
■ VOICE ERG & Connect1NG Annual Summits
actions, including developing our company-wide strategic
direction, policies and initiatives. It also partners with the August ■ Enterprise DE&I Leadership Council & ERG Collaboration event
■ Small Acts of Inclusion Webinar: Becoming an Inclusive Leader
Global Diversity Equity and Inclusion Leadership Committee
Non-Financial ■ VERITAS & NGFAMILY Annual Summits September
staffed by company leaders from around the world, along
Performance Metrics ■ Heritage Month — Hispanic Heritage
with a DE&I Working Group based in the United Kingdom.
■ Launched DE&I Required Training
October
Diversity: Representation of women ■ 2021 NOD Leading Disability Employer Award
Each of our business sector headquarters has a dedicated ■ Heritage Month — National Disability Employment Awareness
DE&I expert and a sector-focused Diversity Council and people of color in all management ■ Out & Equal Workplace & Adelante Annual Summits
comprised of executive leadership, human resources vice level positions ■ Great Minds in STEM Conference November
■ Society of Women Engineers (SWE) Conference ■ Heritage Month — Native American
presidents and working groups. Each Diversity Council
■ APPN & Gen2Gen Annual Summits
works in coordination with the EDEILC and serves as a
■ Society of Asian Scientists and Engineering (SASE) Conference
link between our DE&I organization and our employees, December ■ Society of Hispanic Professional Engineers (SHPE) Conference
managing priority topics from a corporate and sector level. ■ Small Acts of Inclusion Webinar: Native American Inclusion;
Living in Two Worlds

DE&I PRIORITIES ■ Company-Wide Initiatives: We continuously develop
COMMUNICATION & EDUCATION meeting employees where they are in their DE&I journey
and execute vital best-practice programs that connect and providing a solid foundation for future progress. We
To promote DE&I, we use the following: Our DE&I organization produces a wide array of
leaders and employees with solutions and next encourage managers to have ongoing conversations about
communications to drive awareness, manages a
■ Diversity Councils: At the enterprise level and within each steps to face today’s challenges and opportunities. topics included in the training, such as unconscious bias,
robust education curriculum and partners with our
sector, councils and their working teams lead our strategy We incorporate the use of preferred pronouns in micro-inequities and how DE&I relates to our company Values.
Communications and Human Resources teams to provide
from the top and foster a culture of understanding and discussions and signature blocks and have updated our
information to employees across the company. Our best- Importantly, we also launched a Global DE&I Toolkit in 2021
commitment to DE&I around the world. Transgender Inclusion Toolkit for teams and individuals.
practice performance is integral to our culture and success that consists of targeted micro-learning topics, sent directly
■ Employee Resource Groups: These groups foster a ■ Achievement Conferences: We recruit prospective
as an organization. to employee mailboxes each month. The toolkits focused
sense of belonging, familial support and community employees to build our diverse pipeline and expand
on relevant topics while also providing access to thousands
to provide opportunities to take action for a diverse, leadership reach for thousands of attendees through In 2021, we began to require DE&I training for all current and
of additional quick-read resources and year-round
inclusive workplace aligned with Northrop Grumman formal remarks and participation in interactive workshops. newly hired Northrop Grumman employees. The EDEILC
educational opportunities.
Values and goals. We offer employees guidance in the nomination process introduced the training curriculum with the intention of
and recognize their incredible contributions and
■ Sustained Support of Social Justice and Unity:
performance through achievement awards.
Through CEO meetings with all levels of leadership and
employees, we stand with and demonstrate support for ■ External Partnerships: We advance new ideas
all communities, including our Black, Asian, Veteran and with our global partners to support DE&I in the local
LGBTQ+ employees, and employees with disabilities. community and workplace, as well as distinguish our
More than 100 listening sessions were held to provide work as an award-winning organization. We measure
employees with a safe space to speak and to raise ourselves against other companies to ensure continuous
awareness about available resources. We also work improvement.
with external partners such as the OneTen initiative. ■ Promote Inclusion: Our DE&I organization continued
■ Communications and Education: Through our first-ever the Small Acts of Inclusion program, which promotes
required DE&I Training as well as an optional monthly simple actions that any employee or team can take
training sent via email, and regular communications to enhance inclusion for all employees. Over 4,000
with a multitude of best-practice resources, we employees participated in 50+ company and local Small
reinforce the value proposition of DE&I. These trainings Acts of Inclusion events during 2021.
and communications drive awareness, strengthen

engagement and build skills to enhance leadership and
further enlighten employees.

ERGS In 2021, our resource groups hosted 13 ERG summits
open to all employees to participate, regardless of
Our ERGs are a key part of our DE&I strategy. The membership in a specific ERG. The ERG summits provide HIGHLIGHT STORY
organizations play an important role in fostering inclusion, our people with another opportunity to connect and Empowering Our Employees
engagement and belonging, and promoting retention of learn from guest speakers and colleagues about a
talent at Northrop Grumman. More than 25,000 employees variety of DE&I and ERG-specific topics. Northrop Grumman prioritizes helping our people to be
continue to volunteer their time to learn, develop and have successful and productive. Through our ERGs, workplace
meaningful conversations with their colleagues. To learn more about our ERGs, please see our website. accommodations and the broader DE&I program, we seek
to empower every employee to be his or her best. Consider
Danny Tanchez, an engineer at the company, who began
his career here as a summer intern. Following his internship,
Northrop Grumman ranked #4 on DiversityInc’s Top Companies for ERGs. Danny credits the company’s commitment to inclusivity as
one of the primary reasons he knew Northrop Grumman
would be a great place to work. “There are so many
reasons, but if I had to choose one that’s the top to me, a
minority, disabled engineer, then that reason is the inclusivity.
NORTHROP GRUMMAN ERGS From the top to bottom, Northrop Grumman places an
emphasis on its people,” he says. “I had other job offers in my
senior year, but Northrop Grumman was my golden ticket.”
Danny entered the company through the Pathways

program, a Northrop Grumman initiative that allows
early-career professionals to move through three, one-
year rotations within different areas of the company. “This
program was a big draw to me as I didn’t really know what
to expect when I joined the workforce, given my disability,”
shares Danny, who has a progressive neurological disease
called Friedreich’s Ataxia and uses a mobility scooter to
get around. Danny is now in his last rotation, where he
oversees the production of specialized microelectronics for
radar programs, which he plans to make his career focus.
In addition to finding his home here as a manufacturing
engineer, Danny volunteers with The VOICE: Allies for
Disability and Inclusion employee resource group
where he now serves as its enterprise co-chairperson and
champion for equity and inclusion in the workplace.

EQUAL OPPORTUNITY & ACCESS As part of our efforts to enhance the inclusion and
contributions of all employees, Northrop Grumman
Equity and access are two important elements of our
provides accommodation services to manage
inclusive culture. We reinforce equity through our Equal
accommodation and adjustment requests from employees,
Employment Opportunity (EEO) compliance activities as
applicants and visitors. Accommodation requests are a
a federal contractor, as well as through U.S. and global
diverse reflection of employees’ needs and include, but
government reporting related to gender, race/ethnicity,
are not limited to, changes to accessibility and the physical
disability status and veteran status. Our Equality and
environment, deployment of job equipment, modifications
Equity Compliance team oversees equal opportunity
of job duties and schedules and accommodations unique
efforts across our employment selection processes and
to the COVID-19 pandemic.
develops affirmative action plans in the U.S. to help ensure
our programs comply with EEO laws and regulations. We In 2021, we integrated the legacy accommodation request
continue to develop a deeper commitment to equity and process to our employee services portal. The integration
access through other aspects of our program. of this process into the employee services portal increased
visibility and access of the Workplace Accommodations
We are committed to equitable pay for all employees,
process to employees. Employees can now request
including for women and people of color. In support of
accommodations side-by-side with HR and IT services,
this goal, we benchmark our pay through external salary
enhancing the employee experience.
surveys, use a performance-based incentive system and
make further adjustments to promote internal equity.
HIGHLIGHT STORY
Making Success Accessible for the Deaf & Hard of Hearing

The pandemic has impacted us all in more ways than we could have imagined, but for the Deaf and Hard of
1,877 individual accommodation requestors contacted us
Hearing (DHOH) community, the masks we wear to help limit the spread of COVID-19 have created a new obstacle in 2021 — nearly double the volume of requestors in 2020.
for communication. Employees like manufacturing technician Jeff Knedlhans, who is hard of hearing, explains
that the masks his colleagues wear obstruct their voices making in-person conversations almost impossible and
phone conversations much more difficult. Luckily, Jeff was able to communicate this need through workplace
accommodations (WPA) and was outfitted with a ConnectClip. This small but mighty device attaches to Jeff or a
colleagues lapel to help transmit sound directly to Jeff’s hearing aid to help him hear more comfortably and do his
job. Northrop Grumman’s WPA team works hard to ensure solutions like the ConnectClip are available to support the
needs of the DHOH community. In 2021, WPA also enhanced the availability of other services for DHOH employees such
as American Sign Language (ASL) interpreting or Communication Action Realtime Translation (CART). This includes the
deployment of a dedicated schedule of on-call CART writers and ASL interpreters to support employees’ virtual meeting
needs. WPA provided approximately 1,600 ASL interpreting hours and approximately 3,000 hours of CART to support
Northrop Grumman employees in their meetings and events.

Employee Health Our EHS organization verifies compliance with legal
requirements and the effectiveness of our hazard risk
Ergo
ErgoExercises
Exercises
& Safety assessment program through periodic self-inspections and
audits. The EHS team investigates the root cause of findings,
Release
Release your
Ergoyourgripping
Exercises
gripping
People are our most valuable resource, and we work identifies potential preventive actions and recommends
diligently to protect the health, safety and well-being of our
muscles:
muscles:
actions to prevent future safety incidents. We work with
• •Find Release
most
Find most yourspot
tender
tender gripping
spot muscles
employees, customers, visitors and contractors. internal and external industrial hygienists and other EHS
onon
the
theinside
insideof of
elbow
elbow
partners to investigate and reduce or eliminate workplace ■ Find most tender spot on the inside of elbow
• •Pin with thumb
Pin with thumb
HEALTH & SAFETY hazards and potential exposures. When removal of risks
• •Move
Move ■ Pin with
handhand thumb
around
around until
until
through engineering and process design changes is not tenderness decreases
Creating a safe workplace protects our employees. At tenderness
■ Move decreases
hand around until tenderness decreases
possible, we identify the hazard and enact other measures • •Repeat with tender spot
Northrop Grumman, we focus on training, risk and hazard Repeat
■ Repeattender
with spot
with tender spot on outside of elbow
to protect employee health and safety. At select locations, onon
outside of of
elbow
identification, abatement and prevention. Everyone has
outside elbow
medical personnel are on site to treat injuries and illnesses if
a responsibility to identify workplace hazards, and we
and when they occur.
empower employees to report these hazards without fear
of retaliation. Our Safety Committee is a diverse representation of
safety operations from each sector that meets monthly Gripping
Grippingmuscle
muscle
We provide occupational health and safety training tailored stretch:
to develop and manage safety initiatives. The Safety stretch:
HIGHLIGHT STORY
to employees’ job duties, either in person or through an • •Curl fingers into relaxed The
TheExecutive
Executive
online training system. Supervisors are responsible for
Committee advises the EHS Leadership Committee and
Stretch & Flexfingers
Curl Program:
into A Success Story
relaxed
Stretch:
corporate and sector management on various matters fist
fist Stretch:
ensuring their employees have completed all assigned
of health and safety, including corporate and sector We’ve all seen• •Gently
Gently
those pull
pullfist toward
fist
safety-related toward
posters on break room walls — and we may or may • •not
Clasp
Clasphands
have hands
taken behind
behind
more than a
trainings. When a job task contains a significant element of
policies, procedures and best practices. In 2021, as part you with
you with
glance at them. Health the opposite
the opposite
program
head
head
materials sadly often have that “check the box” feel; someone hangs the poster and that is
risk, we may conduct Job Hazard Analysis (JHA) reviews.
of an effort to proactively prevent employee injuries, the
hand
that. Well, that is hand
not what the EHS team had in mind when they decided to refresh the Stretch
• •Puff upFlex
Puff
andup
chest
chest
program at Northrop
Additionally, employees can report safety and health • •Feel
Feel stretch
stretch on ontop of
top of • •Gently
Gentlyleanleanback
back The team
committee helped implement a near miss/good catch Grumman’s site in El Segundo, California. Their vision involved something more engaging, tailored and modern.
concerns confidentially using the OpenLine reporting system. forearm
forearm
program that encourages employees to report events began reinvigorating the program as a way to tackle injury rates for tasks that had limited possibility of engineering
Employees use JHA reviews, hazard identification resources
to EHS and management for evaluation and correction. control and based its design on employee feedback that workers missed their regular onsite stretching sessions.
and prior training to help them make these decisions.
By implementing the near miss/good catch program
Working with our environmental, health and safety (EHS) Working with an ergonomics consultant, the team identified operations with the highest injury rates and complaints of
and collecting data, we aim to reduce overall injuries
specialists, employees review JHAs prior to undertaking discomfort. The team observed employees at work and interviewed them about the physical requirements of their jobs.
as employees become more diligent and proactive in
tasks and receive answers to questions regarding personal Based on the data collected and observations concerning posture, repetition, force and duration, “counter-postures” —
reporting safety concerns.
protective equipment and steps needed to minimize
Improve
stretches andImprove posture:
strengthening/stabilizing Release
Releaseyour
yourback:
posture: exercises — were developed that would help counteract and support the muscles
back:
hazards. We expect our employees to safely perform tasks We review data on our safety incidents and other related
• •Puff
and joints in the Puffupemployees
tasks up
chest,
chest,looking
looking
were
• •SitSit
performing. Next, the team created posters of each
onon stable
stable
movement,
chair
chair
using
or or
employees
and empower them to stop any job they deem hazardous events regularly to identify and address injury trends by
straight
as models, and straight
surface
placed them strategically in work areas. Badge backers were also createdsurfacewith general stretching
• •Squeeze
Squeeze shoulder
shoulder • Head
• Head
exercises. Since reestablishing the program, the site has seen an increase in employee engagement
hangs
hangsdown,
down, belly
bellyin
and participation
to human health and safety or the environment. type and by location and to take necessary action to
blades
blades to spine
to spine on thighs
on thighs
mitigate safety concerns. Stretch and Flex activities as well as a general increase in employee satisfaction. As this program continues, the EHS team
• Exhale
Exhalesqueeze, Inhale • •Spine opens and
hopes to see•a decrease squeeze, Inhale
in the injuries and discomfort employees experience on the job. Spine opens and
relax
relax relaxes
relaxes

RESPONDING TO COVID-19 Our goals have been, and continue to be, to lessen the HEALTH & SAFETY
Since the onset of the global pandemic in late 2019, we
potential adverse health and economic impacts of the
PERFORMANCE SUMMARY Non-Financial
pandemic, to continue to perform for our stakeholders,
have taken and continue to take robust actions to protect We evaluate the effectiveness of our health and safety Performance Metrics
and to position the company for long-term success.
the health, safety and well-being of our employees, programs externally, through benchmarking with industry
customers, visitors and contractors. As we navigate We recognize that the COVID-19 pandemic provides an peers and the U.S. Bureau of Labor Statistics. Internally, Safety: Total case rate, defined as the
the ongoing pandemic, Northrop Grumman continues opportunity for us to enhance long-term resilience in our we determine program effectiveness by conducting number of OSHA recordable injuries as
to evolve our response and implement appropriate supply chain, workforce and overall business operations. trend analyses of our past performance. Our 2021 rates well as lost work day rate associated
guidance and measures. We formed an Enterprise Business Though we will encounter challenges as we learn the reflect the impact of COVID-19 on the number of cases with those injuries
Resumption Team to mature certain of our protocols. most effective ways to respond, the processes that we and lost workdays. U.S. Occupational Safety and Health
build today should allow us to respond more quickly and Administration requires that we count illnesses contracted in
The company continues to monitor closely the ever-
effectively tomorrow. the workplace, as well as the days away.
changing situation and to evolve our response implementing
appropriate guidance measures that are consistent with We continue to see the impacts of the pandemic on
the latest data and guidance from the Centers for Disease the overall well-being of our employees. For more
Control and Prevention, as well as other health organizations, information on how we support our employees, please
government authorities and our customers, among others. see the Well-Being section of this report. TOTAL CASE RATE & LOST WORK DAY RATE
DAYS AWAY CASE RATE
1.2
1.2 20
20
1.0
1.0
0.8
0.8 15
15
0.6
0.6
0.4
0.4 10
10
0.2
0.2
0.0
0.0 5
5
2018 2019 2020 2021 2018 2019 2020 2021
TOTAL CASE RATE DAYS AWAY FATALITIES LOST WORK DAY RATE
CASE RATE
2018: 0.85 2018: 0 2018: 10.34
2018: 0.25
2019: 0.90 2019: 0 2019: 7.46
2019: 0.23
2020: 0.96 2020: 0 2020: 10.70
2020: 0.39
2021: 1.08 2021: 0 2021: 18.61
2021: 0.56

Employee & Family Well-Being SUPPORT FOR WORKING
PARENTS & CAREGIVERS
Northrop Grumman recognizes the importance of supporting the whole well-being experience of our employees and their families. We designed the My Well-
Working parents and caregivers have been especially challenged to provide
Being program to help employees and their families improve their physical, emotional, social and financial health. Our strategy focuses on increasing awareness
reliable care and support during the COVID-19 pandemic, and many have tutoring
around the program, communicating events to employees and using data analytics to promote, execute and evaluate the program in meeting various needs.
and educational concerns. NGCare provided a variety of innovative family care
We recently grew our Wellness Committees into a Well-Being Champion Network, which enhances our program by implementing worksite policies, reducing the
solutions to support families with integrating their work and family lives.
risk of chronic diseases, and increasing employee well-being.
■ Child/Elder Back-Up Care: 4,656 registered employees provided a
In 2021, we integrated the My Well-Being program with our annual roll-out of employee benefits and our employee-facing Total Rewards Gateway, which increased
temporary option for employees to trade a back-up care day for tutoring
visibility of program services to all employees and their families. We also expanded our program resources to include all four dimensions of well-being: emotional,
hours at a nominal cost
physical, financial and social. Each of these pillars plays an important role in our employees’ overall health and well-being. Other 2021 initiatives included:
■ Finding Quality Care: 4,980 employees searched for elder companions,
sitters, nannies
■ College Planning and Special Needs Parenting Support: 4,180 participants

Social Well-Being  Emotional Well-Being 
■ Offered team and non-step challenges, such as the Feeling Grateful ■ Provided over 24,000 services through the NGCare Employee
Challenge, through ENGAGE. Assistance Program (EAP) including counseling, work-life support,
■ Aligning our volunteerism and outreach initiatives with the strategic financial and legal cases and website views.
This year, NGCare partnered with ERGs to provide “real time” strategic
pillars of the Corporate Citizenship program: K-12 STEM education, ■ Hosted 100+ NGCare webinars attended by more than 10,000
support to help affinity groups across the workforce find a sense of
support to our military and veterans, health and human services and employees, covering a variety of tailored topics in partnership with
community during challenging times.
the environment. ERG leaders.
■ Supported the more than 25,000 Northrop Grumman employees who ■ Provided in house clinical support for mandatory and formal EAP ■ Self-Care in the Face of Trauma: Response to acts of violence
are engaged in one of 14 ERGs that provide benefits for the member, referrals, over 100 grief and loss sessions and several transgender against Asian American, Native American and Pacific Islander and
our leaders and the company. inclusion meetings. other diverse communities
■ Expanded our Mental Health First Aid at Work program to certify an ■ Mental Health 101: Foundational session requested by our ERGs in
additional 50 leaders to better identify and approach mental and support of Black and African Americans and People with Disabilities
emotional health issues.
■ Elevating LGBTQ+ Inclusion: Held several sessions designed to
Physical Well-Being 
promote mental health awareness within the LGBTQ+ community
■ Hosted 5,751 attendees at the 2021 Virtual Well-Being EXPO where ■ Supporting Parents and Caregivers During the Pandemic:
attendees could watch videos, chat live with benefits representative Specialized sessions for parents of school-aged children; adoptive
Financial Well-Being 
and providers, attend seminars and explore Northrop Grumman’s parents and those growing their families by adoption; and caregivers
benefits and well-being resources. ■ Presented 258 financial preparedness workshops. for the elderly and people with disabilities
■ Over 30,500 people completed their health incentive milestone by ■ Offered 22 Ask Fidelity Retirement Sessions. ■ Coming Together Sessions: Three support sessions for veterans and
completing their annual physical and setting health goals through
■ 5,141 completed the Financial Wellness Check-Up. military families to gather as a community and discuss responses to the
ENGAGE, a personalized, digital well-being assistant.
events in Afghanistan
■ Hosted 69 onsite flu clinics.

Talent Management We work closely with colleges and universities to
attract a diverse, highly skilled cohort of candidates
HIGHLIGHT STORY Our focus on employee well-being and growth starts prepared for the future of work. Through our partnership
Changing the Way We Think & Talk About Mental Health with each person’s first day with Northrop Grumman. We with Greater Washington Partnership and Capital
approach talent management with the “whole employee” Collaborative of Leaders in Academia and Business
Since the start of the pandemic in March 2020, four in 10 adults say they have experienced symptoms of experience in mind, from recruitment to retirement. The (CoLAB), the Digital Credentials program provides digital
anxiety or depressive disorders, according to research from the Kaiser Family Foundation. employee experience continuum focuses on key career skills to more than 1,200 undergraduate students across
milestones and helps us align our employee development, 20 universities each year. Now entering its third year, the
During 2021, the NGCare program expanded its mission providing holistic solutions to employees and family
engagement and retention efforts. We strive to address the Digital Credentials program helps academic institutions
members. Shifting the culture to normalize conversations and communications about mental health in the
specific needs of our employees throughout every step of develop stronger curricula that prepare students and
workplace was critical to achieving this mission.
their careers. make them more attractive candidates when entering
The highlight of the awareness campaign was a “Real Talk about Mental Health Panel” facilitated by Vice the workforce.
President Sandra Evers-Manly, featuring leaders across the enterprise who shared their inspirational stories
TALENT PIPELINE DEVELOPMENT We continue to invest and engage with trusted partners
related to mental health. As a result of the positive feedback around the first panel, NGCare hosted a second
to grow and support a diverse talent pipeline. In 2021 we
panel session to continue the conversation with two sector p residents and our vice president of security. These The COVID-19 pandemic continues to have wide-ranging
joined OneTen, a coalition of companies representing a
interactive and candid conversations, attended by more than 1,200 employees, demonstrated our executive impacts on changing worker expectations and the entire
wide range of industries that seek to advance racial
team’s commitment to encourage dialogue about mental health in the workplace. Their main message was to talent pipeline. We continue to monitor key trends and
justice and close the opportunity gap for Black talent in
encourage employees and families to seek the confidential support provided by the company at no cost to information to help prepare for the future. By applying
the U.S. OneTen, with its partner companies, aims to train,
them. The series will continue in 2022 with the goal of eliminating the stigma around mental health. an agile framework to our talent strategy, we embrace
hire and promote one million Black individuals over the
revitalization as we grow, offer a value proposition that
next 10 years into family-sustaining careers with
better aligns with candidates’ desires, and diversify our
“At Northrop Grumman, we take a holistic approach to well-being, opportunities for advancement.
talent pipeline.
which means we talk openly about mental health. Our leadership team
encourages employees to seek confidential support provided by NGCare, In 2021, we continued to increase our support to enable
Through continuous academic engagement with students
and to take care of themselves and each other. Executives and employees the enrollment and success of a diverse STEM pipeline
of all ages, we provide the next generation of Northrop
at all levels are sharing their own very personal stories to stop the stigma at two-year and four-year universities. Our funding to
Grumman employees with the skills they need to succeed
about mental health, which has strengthened our sense of community diversity-focused efforts, including programs, activities
in their careers. Our efforts focus on engineering and
across the Company. We are committed to ensure that employees at and clubs increased by 43% over 2020. For additional
technology-based programs and initiatives that excite,
Northrop Grumman realize no one is alone.” partnerships, please see our list of Partnerships and
engage and educate students.
Professional Associations in the Appendix.

Approximately 65% of eligible interns
convert to full-time employees every year
95% of our interns said they would

recommend Northrop Grumman to others
HIGHLIGHT STORY
INTERNSHIPS ■ Operation IMPACT is our unique, award-winning program
focused on helping wounded service members in their Digital Transformation
Our summer internship program is integral to building our 2021 VETERAN HIRING HIGHLIGHTS
transition to civilian careers. of Talent Management
talent pipeline and helping to develop the next generation
1,873
■ Our NG6 Partnership, in conjunction with Los Angeles
of Northrop Grumman employees. In addition to charting a In 2021, Northrop Grumman completed a global
County, assists homeless veterans in identifying
potential career path, the summer program provides hands- transition to a new human capital management
employment opportunities and provides funding
on experience with the opportunity to learn more about our system, Workday. Workday consolidates capabilities
for housing. veterans hired, representing
company culture and build a professional network. of several legacy systems transforming the way we
■ Our partnership with Embry-Riddle Aeronautical
23.4% of external hires
recruit, onboard and manage the performance
In 2021, we continued the hybrid virtual/in-person model University provides education and training as a primary
84
of our people. As an integrated people platform,
established the previous year in response to COVID-19, hiring partner in their Aviation Maintenance Program. Workday streamlines our business processes and
hosting nearly 2,000 interns. Embry-Riddle currently enrolls more than 16,000 provides real-time data allowing our teams to spend
active-duty service members, reservists and veterans veterans hired through Operation IMPACT less time on transactional tasks and more time on
HIRING MILITARY VETERANS through its online Worldwide Campus programs. operating strategically. Workday enables us to
34
■ The Department of Defense (DoD) SkillBridge program efficiently manage candidates and requisitions
With approximately 200,000 service members transitioning
provides transitioning service members with civilian and gives our incoming employees a personalized
out of the U.S. military each year, veterans remain an
work experience during their final six months in service. onboarding experience. Our employees can
important source of talent for Northrop Grumman. Military homeless veterans hired as a result
In partnership with the Office of the Secretary of Defense, highlight their skills, manage their career interests
veterans contribute a great deal to our success as a of the NG6 Partnership Program
Northrop Grumman offers internships to SkillBridge and goals, and request and view feedback on their
company, and we are proud that almost 18% of our total
participants. Since solidifying our partnership in 2020, performance all in one place.
workforce self-identify as veterans. Examples of our efforts
the company has hosted more than 160 interns and hired
to work with and recruit veterans are described below.
more than 145 interns as full-time employees.

TALENT ACQUISITION In response to the ongoing pandemic, we have formalized ■ At the start of 2021, we launched a Contingent Workforce
a hybrid talent attraction process that takes advantage of Solution (CWS) program in partnership with a third party
We remain committed to a diverse and inclusive workforce
both virtual and in-person engagement with candidates. We to manage the end-to-end process for hiring contingent
that reflects the communities within which we live and
continue to monitor the evolving hiring environment, while workers across the company. Currently, we have
work. Our director of diversity hiring is a dedicated role
applying agile recruiting methods to ensure employees and approximately 1,500 active contingent workers. In its
responsible for driving an inclusive hiring approach across
candidates have an exceptional experience. first year of implementation, the new process resulted
the organization. We are committed to creating more
in a savings of $10.4 million. Additional CWS program
opportunities for underrepresented talent, with specific Other 2021 talent acquisition highlights include:
benefits include contingent worker population visibility
focus on our managerial and mid- to high-level technical
■ We attended, sponsored and hired at 15 diversity and compliance, co-employment mitigation, supplier
positions, and to identifying and adopting alternate talent
management and performance metrics.
strategies that create more agile hiring processes. conferences, including Black Engineer of the Year,
National Society of Black Engineers, Disability:IN, Grace ■ Through our work with the Business Roundtable
We continue to examine our hiring processes from end Hopper Celebration, Great Minds in STEM, Society of Workforce Partnership Initiative, we work with peer
to end to identify potential barriers and incorporate best Asian Scientists, Society of Hispanic Engineers, Society of companies to identify new ways to recruit skilled
practices to attract and retain the best qualified skills. We Women Engineers, oSTEM, Out 4 Undergrad, Women of candidates without requiring them to have specific
have invested in tools, resources, and training to: Color STEM, American Indian Science and Engineering degrees or credentials.
and Women in Technology International.
■ Incorporate a skills-driven talent strategy
■ We hosted our fourth annual HBCU Invitational in ONBOARDING
■ Shape our recruitment marketing efforts to attract
partnership with our African American Task Group In 2021, we continued using a hybrid approach of in-
diverse talent pools
ERG. Since 2018, we have hired 123 new graduates person and virtual processes to onboard new employees.
■ Identify and counteract unconscious bias when
from the Invitational. This included providing our new hire training in a mostly
sourcing, interviewing and hiring virtual environment. We also laid the foundation for an
■ We continued our participation in the iReturn program
■ Expand our network to reach a wider range improved candidate engagement experience. Our new
in partnership with the Society of Women Engineers.
of candidates by promoting our jobs on This program helps experienced professionals, both pre-hire onboarding portal, powered by Workday, guides
diversity job boards men and women, return to the workforce after a career candidates through their tasks so they will be ready for
■ Ensure a consistent interview structure that reflects our break of two years or more, by providing a 12-week their first day.
Values and leadership behaviors “returnship” to prepare for a full-time career at Northrop
■ Reimagine our internal partnerships with ERGs Grumman. Since 2017, we have hired 89 participants
into the iReturn program, converting 80 to full-time
employment with 82% retention.

Employee Development
In 2021, 111 people completed the Leadership Program, 51 completed our
Our employee development programs strengthen the skill sets that support both our current and future business needs,
Women in Leadership Program, 50 completed the Executive Leadership
encourage knowledge transfer and support career growth and progression. We encourage employees to pursue diverse
Program, 135 completed Affinity Forum.
job experiences that expand knowledge of our products and customers. Additionally, our leaders also provide feedback
and opportunities to foster employee development.
TRAINING INITIATIVES
We support our employees in developing their career pathways to benefit themselves and Northrop Grumman as a whole. Professional & Executive &
Across the company, we leverage learning technology platforms to enable our people to access curated content that is Technical Development Leadership Development
relevant to them to develop new skill sets and support their career growth.
We work with subject matter experts across We hold regular talent review discussions to
the company to provide relevant and timely ensure line of sight to talent at various levels of the
employee development paths in critical skill areas. organization. Succession plans are refreshed and
With input from over 80 subject matter experts, reviewed to ensure a robust, diverse pipeline of
Vice President Mentoring Manager Development we created development paths in several new talent and business continuity with a tight linkage
areas during 2021, including model-based systems to development. We focus on accelerating
For the fifth year in a row, we offered structured We focus on accelerating learning and
engineering, advanced networking and cyber. learning and growth of our leaders by providing
mentoring for high-potential talent, representing development of our leaders by providing a
a combination of experiences, exposure and
our commitment to developing current and future combination of experiences, exposure and
Since 2020, more than 51,000 employees have
education. We offer leadership development
leaders. Company leaders engaged in monthly education. Our Leading For Impact Program offers
benefited from My Learning Experience, our
cohort programs such as the Executive Leadership
mentoring sessions focused on accelerating development paths for all new and experienced
primary point of access for all professional and
Program, Leadership Cohort Program, Women
growth and mobility through position-based managers seeking to refresh or build their
career development. This platform implements
in Leadership and Affinity Forum. Within these
development and skill-building. Of the 240 leadership capabilities. Nearly 4,000 leaders have
machine learning to recommend related resources
programs, participants engage in strategic
employees who participated in 2021, 68% were of honed their skills leveraging various learning
and create a personalized training experience
dialogue with senior leaders, external thought
diverse backgrounds (women or people of color), modalities, including virtual instructor-led, web-
for each employee. All learning materials are
leaders and peers.
demonstrating Northrop Grumman’s commitment based training and micro-courses to support our
accessible from this single location with integrated
to developing and promoting diverse talent. managers.
social interaction and the ability to connect with
subject matter experts across the company. In 2021,
more than 2 million hours of user activity resulted in
more than 1.5 million content completions.

EDUCATION ASSISTANCE EMPLOYEE ENGAGEMENT
We encourage employees to continue their education
Our annual employee survey gives Northrop Grumman
to enhance skills and knowledge as they progress in
employees the opportunity to provide feedback, contributing
their careers. Northrop Grumman’s Education Assistance
to our ongoing efforts to make our company an even better
benefits are available to employees who want to pursue 82% of Northrop Grumman employees
place to work. We solicit feedback on topics including
a college degree or professional or technical certification
company leadership, work environment, operational
completed the annual employee survey,
that directly aligns with our present and future skills
efficiency, ethics, engagement, inclusion and career performing in the top 6% of companies and
requirements. We also partner with a third-party firm to
development. Performance is compared to the Global High exceeding industry norms and earning
negotiate discounted tuition rates for our employees at
Performance (GHP) Norm and Aerospace & Defense (A&D) us the designation of a High Performing
several academic institutions. Northrop Grumman covers
Norm from the survey provider, Willis Towers Watson. Company by Willis Towers Watson.
up to $10,000 per year for education at any accredited
institution with manager approval. In 2021, we exceeded industry norms in all categories, and
once again secured our designation as a High Performing
Company. Only 6% of companies earn the designation
of a High Performing Company, which is based on
In 2021, Northrop Grumman invested financial performance and employee experience. This
$40.4 million in education assistance best-in-class designation showcases our strong culture,
for 7,171 employees. where employees feel engaged, included and fulfilled
professionally. Survey results also show that manager
effectiveness, career development opportunities, work-life
balance and support for diversity are areas of strength for
Northrop Grumman.
EDUCATION ASSISTANCE
PROVIDED TO EMPLOYEES
Non-Financial
Performance Metrics
50% Graduate Degree
Employee Experience: Perform at the
GHP Norm and above the A&D Norm
29% Non-Degrees
21% Undergraduate Degrees

CORPORATE CITIZENSHIP STRATEGY
Our corporate citizenship strategy is set at the corporate level COMMUNITY SUPPORT AROUND THE WORLD
and executed locally by team members who provide regional
oversight. A network of volunteer ambassadors supports this
framework and serves as a point of contact at sites where
corporate citizenship staff are not located. After thoughtful
review and analysis of our group-wide strategy, we refreshed
our priorities to create a greater impact and alignment with
evolving community and business needs. These priorities aim to:
■ Develop a diverse workforce though strategic science,

technology, engineering and math (STEM) education
programs and initiatives that align to the company’s future
talent needs
■ Drive employee attraction and retention through strategic

and impactful volunteerism, skills development and
philanthropy that underscore our commitment to diversity,
equity and inclusion
■ Enhance Northrop Grumman’s position as an employer

and business of choice through key partnerships in our
communities
■ Address local stakeholder issues in communities that align

with the company’s business strategies and support diversity,
equity and inclusion
Corporate Citizenship Corporate citizenship team members deploy the strategy Education
and collaborate with nonprofit organizations to identify Military and Veterans
Corporate citizenship at Northrop Grumman starts with critical community issues. In partnership with local Northrop Health and Human Services
people — the people we employ today and in the future, as Grumman leaders and ambassadors, the team develops Environment
well as community members, customers and stakeholders. objectives, reviews philanthropic opportunities and implements
Together with our employees, we strive to improve the community-specific plans that align with our priorities and focus
lives of people and make stronger communities possible. areas. Every year, the team evaluates and analyzes the impact
Mentoring a student, helping a service member transition to a of grants and assesses performance against our goals. This
new career, providing a meal to someone in need, cleaning process helps to determine continuation or refinement of the
up our parks and waterways — giving back is at the heart of partnership. In 2021, we contributed to organizations in over 70
what we do. Northrop Grumman communities.

CHARITABLE GIVING EDUCATION To demonstrate our commitment to this priority, we Currently, we have a 2030 goal that aligns with United
established an education equity goal to dedicate 50% of our Nations Sustainability Development Goal #4. By 2030,
We work with dynamic partners to support the diverse Northrop Grumman designs and manufactures some of
education funding to resources or programs that support we aim to help increase math and science proficiency
needs of the communities in which we live and work the world’s most advanced technologies. To maintain
social justice through diversity, equity and inclusion. In 2021, for 350,000 students by providing teachers with
through contributions from the company, the Northrop excellence in innovation, it is imperative that we help
Northrop Grumman and the Northrop Grumman Foundation professional development.
Grumman Foundation and our employees. Our core areas develop students’ interest and abilities in STEM. Our
contributed $13,642,262 toward this goal (54%).
of giving include programs and partnerships that focus on education strategy places top priority on workforce The criteria used to evaluate our partnerships that
STEM education, military and veterans, health and human readiness for students who are underserved in STEM Focus populations include contribute to this goal include intensive training focused
services, and the environment. globally and provides educators with workforce-relevant ■ Minorities who are underrepresented in STEM: on at least one of the following: pedagogy, STEM, Next
professional development to advance their competence Generation Science Standards and Common Core
Black, Hispanic and Indigenous Peoples
in teaching and engaging students in STEM subjects. We Standards. We give special consideration to programs
■ Females
maintain strong partnerships with organizations and that require classroom application and post-training
$39.3 million in social value institutions focused on engineering and technology-based
■ People with disabilities
implementation. In 2021, we provided professional
generated by Northrop Grumman initiatives designed to excite, engage and educate students ■ LGBTQ+ development to 324 new teachers and reached 81,000
from middle school through the university level. In 2021, ■ Low income total students. Since 2015, we have increased the math
Northrop Grumman and the Northrop Grumman Foundation and science proficiency of 354,980 students.
■ Homeless individuals/families
contributed $25,135,649 to education programs of which
$20,364,695 was dedicated to STEM-related programs.
SOCIAL VALUE GENERATED* TOTAL EDUCATION FUNDING
$19,825,034 Company Giving*
$14,449,192 Foundation
$13,642,262 Funding to Support
Education Equity Goal
$3,349,519 Employees
$11,493,387 Other
$1,607,144 Employee Volunteerism
$59,891 In-Kind/Non-Cash
* In addition, Northrop Grumman donated $15,000,000 to the Northrop Grumman Foundation.

Over the past two years, many teacher professional HIGH SCHOOL INVOLVEMENT
development programs shifted to a virtual environment,
PARTNERSHIP (HIP)
allowing us to increase the number of teachers we are
MENTORSHIP PROGRAM
able to support. A few examples include Space Academy
for Educators, Real World Science, Code.org and Northrop Northrop Grumman’s HIP mentoring program helps inspire
Grumman Foundation Teachers Academy. As a result, we and prepare high school students to pursue STEM pathways
met and exceeded our goal nine years early. to fill the future workforce need for diverse, innovative
leaders. Over the past 50 years, more than 5,000 high
school students have participated in the program at one of
20 Northrop Grumman sites.
CUMULATIVE NUMBER OF
With a focus on underserved students, high school juniors
STUDENTS IMPACTED and seniors engage with employees who provide business
environment exposure and hands-on experience in real-
400,000
400000 world environments. After students complete their senior
ACTUAL year in the program, they have the opportunity to apply for
350,000 2015: 10,840 paid summer internships. During the 2020-2021 school year, HIGHLIGHT STORY
350000
2016: 32,340 289 students participated in HIP, 63 of which were eligible
2017: 70,600 for summer internships. In turn, we hired eight participants as
HIP Student Builds a Career at Northrop Grumman
300,000
300000
2018: 123,120 summer interns, with four receiving and accepting offers to Roy Lara had an interest in STEM as early as middle school, but he had no idea how he could realistically translate his
2019: 198,480 continue their internships in 2022. Limitations presented by
250,000 interest into a career. Then he learned his Palmdale, California high school participated in the HIP program. In 2017, Roy
250000 2020: 272,180
the COVID-19 pandemic likely influenced the overall number began HIP, an experience that led to an internship supporting assembly line optimization for the F-35. Today he is a B-2
2021: 354,980
of HIP seniors hired as interns in 2021. Our goal for 2022 is to avionics intern working on displays, radar and antennas.
200,000
200000 on-board a minimum of 25 percent of the HIP seniors.
GOAL
150,000 We collaborate with our Talent Acquisition team to ensure “Never in my wildest dreams did I ever think I’d be an engineer, but starting
150000 2015: 10,840
the students we invite to participate in HIP are highly out in HIP helped me choose a major and gave me a lot of insight into things
2016: 32,340
100,000 qualified to fill future college internship opportunities. In like how important it is to have a mentor, how to network and how to
100000 2017: 43,340
some cases, by the time a student graduates from college, develop soft skills — things you don’t necessarily learn in school but are so
2018: 65,340
they may have accrued up to six years of experience with important for personal and professional growth.”
50,000 2019: 98,340
50000
Northrop Grumman through HIP and internships, making
2020: 131,340
them ideal candidates for full-time employment. Roy will graduate in 2022 with a degree in electrical engineering from Cal State
0 2021: 160,340
0
2015 2016 2017 2018 2019 2020 2021 Northridge. By then, he will have accrued five years’ experience at Northrop
Grumman through HIP and college internships. Roy’s journey with the company
is a testament to the intention and success of HIP, and we are proud that he has
accepted an offer to work with us full-time after he graduates.

In 2021, we worked with select partners to produce free With our new education equity goal in mind, we sponsored
science-based learning modules for students and resources two programs during the year, both supporting those
for their teachers. The content focused on developing underrepresented in STEM and low-income students. The
critical STEM skills and introducing students virtually to a first camp supported 80 scholarships for underrepresented
wide array of Northrop Grumman engineers, technologists minorities in STEM and/or those who required financial
and scientists. Materials include articles and information support to attend camp. The second camp targeted one of
about STEM professionals, STEM career pathways and the poorest communities in the state of Alabama, also known
product highlights. We collaborated with Scholastic as the Black Belt. We sponsored 50 Space Camp scholarships
on its magazine for students featuring the James Webb to middle school students from the Selma Alabama School
Space Telescope and on complementary resources for District and an additional 20 to 100 Black Men of Greater
teachers, which will be available in Spanish, Arabic, Korean Huntsville, an organization that mentors at-risk youth.
and Japanese. These learning modules help teachers
The American Indian Science and Engineering Society
demonstrate to students the relevance of what they learn in
(AISES) focuses on substantially increasing the representation
the classroom to STEM professions and the skills required to
of Indigenous peoples of North America and the Pacific
be successful in those careers.
Islands in STEM studies and careers. The Northrop Grumman
In South Korea, we sponsor Future Aerospace Leaders Foundation provided a grant to assist with the development
Club of Nation (FALCON) to encourage youth to explore of the online AISES Learning Center, which will offer culturally
aerospace, science and engineering fields, and experience relevant lesson plans and educational resources to help
first-hand what a career in aerospace may entail. Every indigenous students succeed. In addition, we contributed to
year, 20 students between the ages of 11 through 13 the AISES Energy Challenge, an energy-focused science and
participate in experimental courses, career camps and engineering fair for Native youth.
aerospace competitions.
Employees from Northrop Grumman’s Propulsion Systems
STEM EDUCATION sponsor of CyberPatriot, the U.S. Air Force Association’s
and Controls site in Elkton, Maryland, collaborated with
STEM education is critical to meeting the future demands
National Youth Cyber Education Program. CyberPatriot DIVERSITY IN STEM INITIATIVES the American Institute of Aeronautics and Astronautics to
offers cyber education to students in grades pre-K through
of our company and our world. Many of our corporate At Northrop Grumman, we value diversity of thought and present Introduce a Girl to Engineering Day. This virtual
12th grade. Their signature program is the National Youth
citizenship initiatives focus on using our areas of expertise experience. In 2021, we dedicated 50% of our education event for eighth-grade students began with an introduction
Cyber Defense Competition, in which middle and high
to enhance STEM education around the globe. For funding to resources or programs that support social justice to rockets and engineering and followed up with virtual
school students compete in teams to protect and defend
more information on our STEM initiatives, please see our through diversity, equity and inclusion. games like engineering Pictionary. During speed mentoring,
the network of a fictitious company. Over the years, the
corporate citizenship website. students met with and asked questions to multiple woman
program has expanded to other countries, including In 2020, Space Camp was suspended because of the engineers. The event concluded by teaching the students
Building tomorrow’s cybersecurity workforce is not only CyberCenturion in the UK and CyberTaipan in Australia. pandemic but reopened in 2021 with travel restrictions, how to make glue from household items and describing the
a national priority, but also a global one. For 10 years, the Due to the success of the 2020 pilot program in Japan, causing us to shift from providing scholarships to educators important role adhesives have in rocket manufacturing.
Northrop Grumman Foundation has been the presenting CyberSakura officially launched with 25 teams in 2021. and students from around the world to students in the U.S.

MILITARY & VETERANS In 2021, we recognized that the Afghanistan withdrawal In Australia, we support Soldier On, a fully integrated We provided funding to United Way of SE Louisiana
affected many of our service members and veterans. We and holistic veteran support service. Northrop Grumman in response to Hurricane Ida, which devastated areas
We take great pride in supporting our veterans, military and
funded initiatives by the United Service Organizations (USO) Australia has worked closely with the Soldier On Pathways where our employees work and live. In addition, when
their families. Through volunteerism, employee giving and
to support deployed service members in Afghanistan. Program to provide employment and career advice an earthquake ravaged Haiti, we supported the Salvation
charitable giving, we contribute to programs focused on
Our support to Headstrong Project helped veterans to veterans and their family members. We also support Army and Hope For Haiti, which focused on housing and
employment, homelessness, appreciation, and services for
experiencing painful emotions as a result of the withdrawal. the Soldier On Women’s Vet Connect, a program that medical services for those displaced from their homes.
the wounded, ill and injured.
Our grant will help provide free, confidential and easy- specifically addresses the needs of female veterans
In the aftermath of the Afghanistan crisis, Northrop
Each December on Wreaths Across America Day, wreath to-access mental health treatment for active duty service transitioning into civilian life.
Grumman provided grants to nonprofit organizations
laying ceremonies take place at over 2,500 cemeteries to members, members of the National Guard and Reserve,
protecting Afghans in danger. We also contributed to
veterans and their families.
remember and honor our fallen U.S. veterans. In partnership HEALTH & HUMAN SERVICES resettlement and placement efforts allowing refugees to
with our military and veteran-focused employee resource
Creating career pathways for transitioning service Through our health and human services support, we focus achieve self-sufficiency, with resources for housing, food,
group, VERITAS, and Wreaths Across America we hold an
members and veterans is another priority for our military on addressing critical local needs and disasters that affect education, medical care and employment.
annual fundraiser to help commemorate this special day.
and veterans outreach strategy. We work with NPower our communities. We are dedicated to alleviating hunger in
Since 2018, Northrop Grumman employees have shown Northrop Grumman also supports the National Pulse
to support no-cost workforce development programs for our communities, and in 2021 we committed to providing 5
respect for fallen veterans by volunteering at events and Memorial and Museum project to commemorate those
veterans in Maryland and Texas to become successful IT million meals to people in need by 2030.
donating wreaths. In 2021, employees donated 6,300 wreaths, lost in the Pulse nightclub tragedy in Orlando, Florida, in
professionals through training, certifications, job placement
totaling almost 17,000 wreaths over the past four years. To meet our goal, Northrop Grumman and our employees 2016. Part of this project includes the development of a
and career growth. The program blends 16 weeks of half-
will collectively donate 500,000 meals a year to organizations temporary digital mural and a permanent mosaic tile
day classroom curriculum, seven weeks of paid internships
and programs that support hunger relief. Donations include display in the Pulse Museum. In celebration of Pride month,
and over 120 hours of professional skills development.
contributions from the company, employee fundraisers, food employees participated in their OUTLOVE HATE campaign
drives and ECHO workplace giving. We created the Northrop and uploaded photos for the exhibit to show their support
Grumman Hunger Action Month Campaign in September to of the LGBTQ+ community.
engage employees in achieving our goal. Throughout the
The Los Angeles Brotherhood Crusade-Black United Fund
year, employees volunteered over 2,200 hours at 30 hunger-
focuses on supporting low-income youth to identify social
related events and hosted 30 canned food drives. Through
justice issues in their community and become catalysts
these initiatives, in 2021, we exceeded our annual goal by
for change. They begin by learning about the historical
donating 2,414,800 meals.
context, current landscape and future trends of social
We support disaster relief and provide humanitarian support justice issues. As they progress through the program, they
around the world during moments of crisis. Northrop become peer educators and community organizers
Grumman proactively contributes annually to American Red rallying support to ignite movements that facilitate policy
Cross and AmeriCares to support their response whenever and systems changes.
and wherever a disaster occurs. Our employees eagerly
participate in disaster relief campaigns throughout the
year; with over 1,000 employees pledging to donate blood
2,414,800 meals donated
through the America Red Cross SleevesUp campaign.
to support hunger relief

ENVIRONMENT
We encourage employees to reinforce our company’s
commitment to the environment by volunteering to
support activities at work and in the local communities. Our
environmentally-focused philanthropic partnerships with
local organizations help promote conservation and inspire
the next generation of environmental stewards.
In Utah, we support the Foundation for the Provo-Jordan

River Parkway. In addition to contributing to cleanup
efforts, Northrop Grumman provided funding to develop
trail signage to educate the public about the historic and
environmental value of the Wasatch Front’s only river.
Through work with the Trails and Open Space Coalition,
employees volunteer to remove trash from important
watershed areas throughout the year. In San Diego,
employees volunteered with the San Diego Coastkeeper to
develop and launch a field-based environmental science
literacy program for high school students.
In Virginia, we continued our twenty-year partnership

with the Fairfax County Park Foundation. Supported by
our donations, the Meaningful Watershed Environmental
Education Program engages fourth and seventh grade
students in hands-on educational field trips, training them
to become good stewards of natural resources. When
MAKING A DIFFERENCE In addition, we updated our volunteer recognition
the COVID-19 pandemic shuttered schools and parks, THROUGH VOLUNTEERING program, formerly known as Excellence in Volunteerism
Awards. The new program, Difference Maker Awards,
our contributions helped them develop short videos for Volunteers are critical to the success of our partnerships
celebrates employees’ commitment to making a difference
teachers to use in place of hands-on experiences. In 2021, and we value the significant contributions they make.
through volunteerism. Awards are given in three categories,
Northrop Grumman received the Distinguished Private Throughout the year, employees logged 56,312 volunteer
with the top winner in each awarded a $10,000 charitable
Sector Service Award from the Virginia Recreation and hours valued at $1,607,144*. Those employees who logged
grant for their qualifying nonprofit or accredited public
Parks Society in recognition of our support of initiatives that 40 or more hours within a calendar year received a $400
school and two runners-up in each category receive a
teach students meaningful steps they can take to protect Community Service Grant for the nonprofit or school where
similarly qualifying $5,000 charitable grant. Thousands of
local groundwater and help preserve Fairfax County’s they volunteered.
employees voted to select the winners.
natural resources.
* Based on Independent Sector’s estimate of $28.54 as the average value of
hourly volunteer time.

Appendix
DEFINING OUR SUSTAINABILITY STANDARDS
NORTHROP GRUMMAN Appendix 56

Selected Awards & ■ DiversityInc’s Top 50 Companies for Diversity (#21).
Specific lists: Top Company for People with Disabilities
Recognitions for 2021 (#10), Native American/Pacific Islander (#2), LGBTQ+ (#21),
ERGs (#4), Mentoring (#12), Executive Diversity Councils
■ 100% rating for the eighth consecutive year on the (#17), and ESG
Human Rights Campaign’s Corporate Equality Index “Best ■ Equileap’s Top 25 for gender equality
Place to Work for LGBTQ+ Equality”
■ James S. Cogswell Award for Outstanding Industrial
■ 2021 Best of the Best Top Employers and Top LGBTQ+
Security Achievement granted by the Defense
Friendly Companies by Professional Woman’s Magazine
Counterintelligence and Security Agency to six
■ 2021 Best of the Best Top Employers and Top LGBTQ+ Northrop Grumman facilities
Friendly Companies lists by Black Employment & ■ Leadership score of A- in CDP’s climate change
Entrepreneur Journal
questionnaire for the 10th consecutive year.
■ 2021 Best of the Best Top Supplier Diversity Programs and
■ Military Friendly® (Gold) and Military Friendly Spouse
Top Veteran-Friendly Company by U.S. Veterans Magazine
awards from Victory Media
■ 2021 Gold HIRE Vets Medallion Award from the U.S.
■ National Organization on Disability Leading
Department of Labor
Disability Employer
■ 3BL Media’s 100 Best Corporate Citizens
■ One of Top 50 Best of the Best Corporations for Inclusion
■ AA rating from MSCI for ESG management by National LGBT Chamber of Commerce and National
■ American Heart Association Workplace Health Business Inclusion Consortium
Achievement Index Silver Level Recognition ■ One of Top 50 Employers by CAREERS &
■ Best in Enterprise Resilience recognition by Everbridge the disABLED Magazine
■ Career Communications Group- Top 10 industry supporter ■ Only A&D company to receive a 100% Score on the
for engineering programs at HBCUs CPA-Zicklin Index for Corporate Political Contributions
■ Disability Equality Index “Best Place to Work for Disability ■ S&P Global Dow Jones Sustainability Indices. Named to
Inclusion”. Highest ranking for 7th year in a row the DJSI World Index and North America Index.
■ Disaster Recovery Institute International’s Response

and Recovery of the Year Award

Organizations & ■ Defense Industry Initiative on Business Ethics and Conduct ■ Society of Asian Scientists and Engineers ■ San Diego State University
University Partnerships
■ Disability:IN ■ Society of Hispanic Professional Engineers ■ Stanford University
■ Diversity Best Practices ■ Society of Women Engineers ■ Tuskegee University
■ Ethics and Compliance Initiative ■ The Conference Board ■ University of Alabama, Huntsville
Northrop Grumman maintains affiliations with a variety
of organizations and universities that inform and ■ Gartner Advisory Group ■ Virginia Chamber of Commerce ■ University of Arizona
enhance our performance. In addition, our list of ■ Great Minds in STEM ■ University of California, Irvine
trade association memberships is available on our Universities
■ Greater Washington Partnership ■ University of California, Los Angeles
trade associations webpage.
■ HUBZone Contractors National Council ■ University of California, San Diego
■ Arizona State University
■ Human Rights Campaign ■ University of California, Santa Barbara
ORGANIZATIONS ■ Bowie State University
■ Industrial Security Awareness Council ■ University of Central Florida
■ California Institute of Technology
■ Advancing Minorities Interest in Engineering (AMIE)
■ Institute for Supply Management ■ University of Colorado, Boulder
■ California Polytechnic State University, San Luis Obispo
■ Aerospace Industries Association
■ Institute of Business Ethics ■ University of Colorado, Colorado Springs
■ California State Polytechnic University, Pomona
■ American Association of Exporters and Importers
■ International Aerospace Environmental Group ■ University of Florida
■ California State University, Long Beach
■ Asian Business Association
■ International Forum on Business Ethical Conduct ■ University of Illinois, Chicago
■ California State University, Northridge
■ Association for Supply Chain Management
■ Latin Business Association ■ University of Illinois, Urbana-Champaign
■ Carnegie Mellon University
■ Association of Corporate Citizenship Professionals
■ National Association of Manufacturers ■ University of Maryland, Baltimore County
■ Embry-Riddle University
■ Black Business Association
■ National Association of Women Business Owners ■ University of Maryland, College Park
■ Florida A&M University
■ Black Engineer of the Year
■ National Center for American Indian Enterprise ■ University of Michigan
■ Florida Institute of Technology
■ Boston College Center for Corporate Citizenship
Development ■ University of Oklahoma
■ George Mason University
■ Boston College Center for Work & Family ■ National Defense Industrial Association ■ University of Puerto Rico, Mayaguez
■ Georgia Institute of Technology
Workforce Roundtable
■ National LGBT Chamber of Commerce ■ University of South Florida
■ Brookings Institution ■ Howard University
■ National Minority Supplier Development Council ■ University of Southampton
■ Business Round Table ■ James Madison University
■ National Science Teaching Association ■ University of Southern California
■ Capital Collaborative of Leaders in Academia ■ Massachusetts Institute of Technology
■ National Society of Black Engineers ■ University of Utah
and Business (CoLAB) ■ Morgan State University
■ National Veteran Small Business Coalition ■ University of Virginia
■ CAPS Research ■ North Carolina A&T State University
■ OneTen ■ Utah State University
■ Center for a New American Security ■ Prairie View A&M University
■ Out & Equal Workplace Summit ■ Virginia Polytechnic Institute and State University
■ Center for Strategic and Budgetary Assessments ■ Purdue University
■ Responsible Minerals Initiative (formerly Conflict-Free ■ Weber State University
■ Center for Strategic and International Studies ■ Rochester Institute of Technology
Sourcing Initiative)
■ West Virginia University
■ Corporate Eco Forum

Materiality
In 2020, we conducted a comprehensive refresh of our material* ESG topics
with a third party. We gathered and analyzed input by engaging with a diverse Geopolitical Factors Ethics
set of internal and external stakeholders, including company leadership, Climate & GHG Emissions Product Safety & Quality
trade associations, university partners, nonprofits and suppliers. Our executive
VERY HIGH
Talent Management, Employee
leadership reviewed and validated the results to ensure we had a complete
Well-Being & Engagement
list of topics that aligned with our business and reflected the feedback from our
Importance to External Stakeholders

stakeholders. For a full description of our materiality assessment process, please Cybersecurity & Data Privacy
see our 2020 Sustainability Report.
Diversity, Equity & Inclusion
OUR RESULTS Resource Conservation Corporate Governance Supply Chain

Our ESG materiality matrix highlights the topics that are important to both Human Rights Customer Satisfaction
Product Environmental Impact
HIGH
Northrop Grumman and our stakeholders. The assessment identified our
Community & STEM Engagement Regulatory Compliance & Policy
most material topics to be:
Engagement
■ Ethics
Innovation & Digitization
■ Product Safety & Quality
■ Talent Management, Employee Well-Being & Engagement

Environmental Remediation
■ Cybersecurity & Data Privacy
MODERATE
Business Continuity
■ Diversity, Equity & Inclusion
The ESG topics identified within the matrix are viewed as material to the company.
However, the prioritization may vary across different locations, operations or
business sectors.
MODERATE HIGH VERY HIGH
We reference these materiality results in shaping Northrop Grumman’s
sustainability strategies, goals, initiatives, risk management and more. We track Business Impact
emerging ESG issues and update our sustainability strategies periodically to
address the topics that are important to our business and our many stakeholders.
Environmental Social Governance Product
* We do not use the term “materiality” as defined by or in the context of the U.S. Securities and Exchange
Commission (SEC) laws including those related to SEC reporting and disclosure obligations, or any other
securities laws, or as the term is used in the context of financial statements and financial reporting.

Stakeholder Engagement
Our key stakeholders include academia, community, customers, employees, government, industry partners, policymakers, professional associations, shareholders and suppliers.
We engage extensively with stakeholder groups through various means to promote understanding and dialogue regarding management of these material ESG issues.
Annually, as part of our Sustainability Report preparation, we convene an External Review Panel to provide feedback on our ESG programs and transparency.
This direct input is helpful as we continue to make improvements in our management and disclosure practices.
WHOM WE ENGAGE HOW WE ENGAGE
Community ■ Review programs and initiatives in collaboration with community partners and senior leadership; develop community engagement plans that align with
strategic priorities
■ Network with leaders from organizations in our targeted areas, including military and veterans, STEM education and diversity-focused organizations, to
understand key issues and needs
Customers ■ Work with customers on establishing program goals and priorities
■ Partner with government and industry partners to develop and drive common strategies and standards that support program performance, foster innovation
and reduce supply chain risk
Employees ■ Consult and collaborate with employees through a variety of ways, including our annual employee survey, Employee Resource Groups, Global and Sector
Diversity and Inclusion Committees and all hands and small group forums
■ Offer volunteer opportunities and programs in areas such as mentoring, STEM education, environmental conservation, military and veterans, matching gifts and
payroll contributions to charities
Industry Partners ■ Represent the company on industry associations addressing security stakeholder topics such as critical technology protection, controlled unclassified
information, insider threats and personnel security clearance
■ Participate in industry meetings with various nonprofit and government organizations
Shareholders ■ Collaborate with investment leads and actively managed shareholders
■ Meet with the governance leads of our largest shareholders
Suppliers ■ Host supplier outreach events and offer mentoring programs
■ Sponsor academic, customer and industry activities that support small business growth and development

Environmental Data Forward-Looking Statements only as of the date when made, and the Company undertakes no obligation
to publicly update or revise any forward-looking statements after the date of
Accountability Methodology Statements in this report contain or may contain statements that constitute this release, except as required by applicable law. Forward-looking statements
“forward-looking statements” within the meaning of the Private Securities are not guarantees of future performance and inherently involve a wide range
We have continued to prioritize tracking and maintaining high-quality data of risks and uncertainties that are difficult to predict. A discussion of these risks
Litigation Reform Act of 1995. Words such as “will,” “expect,” “anticipate,”
about our key operational environmental metrics, including GHG emissions, and uncertainties is contained in the Company’s filings with the Securities and
“commit,” “intend,” “may,” “could,” “should,” “plan,” “project,” “forecast,” “believe,”
water usage and solid waste diversion from landfills. Exchange Commission.
“estimate,” “outlook,” “trends,” “goals” and similar expressions generally identify
these forward-looking statements. These forward-looking statements speak
This year, we made a few adjustments to our reporting methodologies for
our GHG and waste performance indicators moving into our next generation
goals. For GHG emissions, we are now using a market-based accountability
methodology for Scope 2 emissions to better reflect the actions we are taking
to expand our use of renewable energy. In addition, we have modified our
waste metric to include hazardous waste generation, so diversion from landfill
will reflect our entire waste portfolio for the business as opposed to just non-
hazardous waste.
Our environmental footprint data is tracked across the full portfolio of our
facilities where we have operational control, which represents more than
99% of our global footprint. Reporting for our historical data has also been
adjusted to align with our current business composition*, structure and revised
methodologies. Our GHG inventory was developed in accordance with the GHG
Protocol Corporate Standard and in alignment with the International Aerospace
Environmental Group Greenhouse Gas Reporting Guidance, and includes CO2,
CH4, N2O, HFCs, PFCs, SF6 and NF3.We continue to engage third-party verifiers to
validate our Scope 1 (direct), Scope 2 (indirect, location- and market-based) and
Scope 3 (other indirect) Business Travel emissions to the ISO 14064-3 standard.
* As of 2021, historical environmental data presented is now inclusive of the Orbital ATK acquisition in
2018 as well as IT Services divestiture that occurred in 2021. Performance metrics presented in previous
sustainability reports will differ.

GRI Standards Content Index
The GRI content index indicates the location of each disclosure within this report, externally on our website or other reports or provides the information directly in a statement.
We have also indicated how our reporting topic areas align with the United Nations Sustainable Development Goals (SDGs). The SDGs address global challenges and are
designed to encourage active participation by corporations, governments and non-profit organizations to collaborate on finding solutions.
PR: 2021 Proxy Statement
For more information see the United Nations SDGs website. Index
PCG: Principles of Corporate Governance
General Disclosures
DISCLOSURE Description LOCATION (OR DIRECT INFORMATION) SDG REFERENCE DISCLOSURE Description LOCATION (OR DIRECT INFORMATION) SDG REFERENCE
ORGANIZATIONAL PROFILE Precautionary principle or

102-11 Governance; Protecting Our Environment –
approach
102-1 Name of the organization Our Company –
102-12 External initiatives Stakeholder Engagement –
Activities, brands,
102-2 Our Company –
products, and services 102-13 Memberships of associations Partnerships & Professional Associations –
102-3 Location of headquarters Falls Church, Virginia, U.S. – STRATEGY
102-4 Location of operations See Northrop Grumman website, Contact Us – Statement from senior
102-14 Message From CEO –
decision-maker
102-5 Ownership and legal form Form 10-K, p. 1; NYSE: NOC –
ETHICS AND INTEGRITY
102-6 Markets served Our Company –
Our Values; Ethics &
102-7 Scale of the organization Our Company – Responsible Business Practices
Values, principles, standards
102-16 SDG 16
and norms of behaviors
For information on the process of determining our
Information on employees
102-8 People & Culture; Data matrix – new values, see Our Values in the 2020 report.
and other workers
Mechanisms for advice and Ethics & Responsible Business Practices:

102-9 Supply chain Global Supply Chain – 102-17 SDG 16
concerns about ethics Northrop Grumman OpenLine
Significant changes to Effective January 30, 2021, the company

102-10 the organization and completed a sale of its IT services business to –
its supply chain Peraton, an affiliate of Veritas.

GOVERNANCE Review of economic,

102-31 environmental and Board of Directors -
102-18 Governance structure Governance SDG 16 social topics
102-19 Delegating authority Governance; PCG Section 11.B SDG 16 Highest governance body’s
102-32 PR 25 -
role in sustainability reporting
Consulting stakeholders on
Stakeholder Engagement;
102-21 economic, environmental SDG 16 Communicating
PCG Section IV.G 102-33 PCG Section IV.G -
and social topics critical concerns
Composition of the highest 102-35 Remuneration policies PR 29-32, 39-56 -

Board of Directors; PR Proposal 1:
102-22 governance body and its SDG 5, 16
Election of Directors
committees Process for determining
102-36 PCG Section V.A, B -
remuneration
Chair of the highest
102-23 Board of Directors SDG 16
governance body Stakeholders’ involvement
102-37 PR 6, 38, 56 SDG 16
in remuneration
Nominating and selecting the Board of Directors; PR Proposal 1:
102-24 SDG 5, 16
highest governance body Election of Directors Annual total
102-38
compensation ratio
Ethics & Responsible Business Practices;
102-25 Conflicts of interest SDG 16
PCG Section III.E; VII STAKEHOLDER ENGAGEMENT
Role of the highest 102-40 List of stakeholder groups Stakeholder Engagement -

Board of Directors; PCG Section I, II; PR:
102-26 governance body in setting -
Board Membership and External Relationships
purpose, values and strategy Collective bargaining
102-41 ESG Performance Data Matrix SDG 8
agreements
Evaluating the highest
Governance;
102-28 governance body’s - Identifying and
PCG Section VI.D 102-42 Stakeholder Engagement -
performance selecting stakeholders
Identifying and managing Approach to stakeholder

Board of Directors: 102-43 Stakeholder Engagement -
102-29 economic, environmental SDG 16 engagement
Sustainability Oversight
and social impacts
Key topics and concerns
102-44 Stakeholder Engagement -
Effectiveness of risk raised
102-30 Governance -
management processes
Entities included in the
102-45 consolidated financial Northrop Grumman Corporation -
statements

Management Approach
Defining report content 103-1, 2, 3 Ethics Ethics & Responsible Business Practices SDG 12
102-46 About This Report; Materiality -
and topic boundaries
103-1, 2, 3 Corporate governance Governance SDG 12
102-47 List of material topics Materiality -
Regulatory compliance
103-1, 2, 3 Ethics & Responsible Business Practices SDG 12
We made minor restatements in environmental and policy engagement
data as a result of error corrections in alignment
with the GHG Protocol Corporate Standard Cybersecurity and data
103-1, 2, 3 Cybersecurity & Data Protection SDG 9
methodology. privacy
102-48 Restatements of information -
As of 2021, historical environmental data 103-1, 2, 3 Business continuity Business Continuity & Operational Resilience SDG 12
presented is now inclusive of the Orbital
ATK acquisition in 2018 as well as IT Services 103-1, 2, 3 Human rights Ethics & Responsible Business Practices SDG 8
divestiture that occurred in 2021.
103-1, 2, 3 Supply chain Global Supply Chain SDG 8
102-49 Changes in reporting About This Report -
103-1, 2, 3 Product safety and quality Product Strategy & Innovation SDG 9
102-50 Reporting period 2021 -
103-1, 2, 3 Customer satisfaction Product Strategy & Innovation SDG 12
102-51 Date of most recent report July 2021 (reporting on 2020 data) -
103-1, 2, 3 Innovation and digitalization Product Strategy & Innovation SDG 9
102-52 Reporting cycle Annual -
103-1, 2, 3 Environmental remediation Environmental Sustainability SDG 6, 7, 13, 14, 15
Contact point for questions
102-53 See Northrop Grumman website, Contact Us. -
regarding the report Talent management,
103-1, 2, 3 employee well-being and People & Culture SDG 8
Claims of reporting in engagement
This report has been prepared in accordance
102-54 accordance with the GRI -
with the GRI Standards: Core option.
Standards 103-1, 2, 3 Diversity, equity and inclusion Diversity, Equity & Inclusion SDG 5, 10
102-55 GRI content index GRI Standards Content Index - 103-1, 2, 3 Health and safety Employee Health & Safety SDG 3, 8
We externally assure our Emissions 103-1, 2, 3 Resource conservation Environmental Sustainability SDG 6, 7, 13, 14, 15
102-56 External assurance -
and Water data. See our website.
103-1, 2, 3 Climate and GHG emissions Environmental Sustainability SDG 6, 7, 13, 14, 15
Community and STEM SDG 1, 2, 3, 4, 5,

103-1, 2, 3 Corporate Citizenship
engagement 11, 17

Topic-Specific Disclosures
ECONOMIC EMISSIONS
ECONOMIC PERFORMANCE Environmental Sustainability, Data Matrix

Direct (Scope 1)
305-1 SDG 12, 13
GHG emissions
Direct economic value 2021 CDP Response
201-1 Financial Performance; Annual Report SDG 2, 8, 9
generated and distributed
Environmental Sustainability, Data Matrix
Energy indirect (Scope 2)
PROCUREMENT PRACTICES 305-2 SDG 12, 13
GHG emissions
2021 CDP Response
Proportion of spending
204-1 Global Supply Chain SDG 12 Other indirect (Scope 3)
on local suppliers 305-3 2021 CDP Response SDG 12, 13
GHG emissions
ANTI-CORRUPTION
305-4 GHG emissions intensity Data Matrix SDG 12, 13
Operations assessed for risks
205-1 Ethics & Responsible Business Practices SDG 16 305-5 Reduction of GHG emissions 2021 CDP Response SDG 12, 13
related to corruption
Communication and training EFFLUENTS AND WASTE

205-2 about anti-corruption policies Ethics & Responsible Business Practices SDG 16
and procedures 306-3 Waste generated Environmental Sustainability, Data Matrix SDG 12
ENVIRONMENTAL ENVIRONMENTAL COMPLIANCE
ENERGY Non-compliance with

307-1 environmental laws Data Matrix SDG 16
Energy consumption and regulations
302-1 Data Matrix SDG 7, 12, 13
within the organization
SOCIAL
302-3 Energy intensity Data Matrix SDG 7, 12, 13
OCCUPATIONAL HEALTH AND SAFETY
WATER
Occupational health and
403-1 Employee Health and Safety -
Interactions with water safety management system
303-1 Environmental Sustainability -
as a shared resource
Hazard identification,
Management of water 403-2 risk assessment and Employee Health and Safety -
303-2 Environmental Sustainability - incident investigation
discharge-related impacts
303-3 Water withdrawal Environmental Sustainability SDG 6

Occupational Employee & Family Well-Being; TRAINING AND EDUCATION

403-3 -
health services Northrop Grumman Total Rewards
Programs for upgrading
Worker participation, 404-2 employee skills and transition Talent Management SDG 8
consultation and assistance programs
403-4 communication on Employee Health & Safety -
occupational health Percentage of employees
and safety receiving regular
404-3 Talent Management SDG 8
performance and career
Worker training on development reviews
403-5 occupational health Employee Health & Safety -
and safety DIVERSITY AND EQUAL OPPORTUNITY
Promotion of Employee Health & Safety, Diversity of governance

403-6 - 405-1 Governance; Data Matrix SDG 5, 8
worker health Employee & Family Well-Being bodies and employees
Prevention and mitigation PUBLIC POLICY

Global Supply Chain: Supplier Responsibility
of occupational health and
403-7 -
safety impacts directly linked 415-1 Political contributions Northrop Grumman Political Contributions SDG 16
Supplier Standards of Business Conduct
by business relationships
Types of injury and rates

of injury, occupational
403-9 diseases, lost days and Data Matrix SDG 8
absenteeism and number
of work-related fatalities

SASB Index
The table below identifies the Sustainability Accounting Standards Board (SASB) indicators for which we have publicly available
information, relevant to the Aerospace & Defense Standard (Version 2018-10).
METRIC CODE ACCOUNTING METRIC LOCATION (OR DIRECT INFORMATION) METRIC CODE ACCOUNTING METRIC LOCATION (OR DIRECT INFORMATION)
ORGANIZATIONAL PROFILE FUEL ECONOMY & EMISSIONS IN USE-PHASE
(1) Total energy consumed (in gigajoules, GJ) (1) 9,822,260 GJ Revenue from alternative
RT-AE-410a.1 $0
RT-AE-130a.1 (2) Percentage of grid electricity (2) 53% energy-related products
(3) Percentage renewable (3) 1%
MATERIALS SOURCING
HAZARDOUS WASTE MANAGEMENT
Description of the management of risks Ethics & Responsible Business Practices
RT-AE-440a.1
Amount of hazardous waste associated with the use of critical materials Global Supply Chain
RT-AE-150a.1 -
generated, percentage recycled
BUSINESS ETHICS
Number and aggregate quantity of
RT-AE-150a.2 0 reportable spills
reportable spills, quantity recovered Discussion of processes to manage business Ethics & Responsible Business Practices
RT-AE-510a.3
ethics risks throughout the value chain Global Supply Chain
DATA SECURITY
Description of approach to identifying

RT-AE-230a.2 and addressing data security risks in Cybersecurity and Data Protection Metric Code Accounting Metric QUANTITATIVE DATA
company operations and products
RT-AE-000.B Number of employees 88,000
PRODUCT SAFETY
Number of counterfeit parts detected —

While this quantitative metric is not reported,
RT-AE-250a.2 we provide a qualitative description of our Global Supply Chain
management approach to protecting the
integrity of our supply chain.
Number of Airworthiness Directives 0 Airworthiness Directive received

RT-AE-250a.3
received; total units affected 0 units affected

ESG Performance Data Matrix
TOPIC 2019 2020 2021 GRI SASB TOPIC 2019 2020 2021 GRI SASB
COMPANY DATA* Community investments as measured

by Business for Societal Impact 91 74 87 201-1 -
Sales (million USD) 33,841 36,799 35,667 102-7 - (Company and Foundation) (%)
Employees (as of December 31 Employee giving (million USD)‡ 3.4 5.2 3.3 -
90,000 97,000 88,000 102-7 RT-AE-000.B
of each calendar year)
Employee volunteerism (hours) 63,187 55,893 56,312 -
Floor space (thousand square feet) 53,780 50,875 51,104 102-7 -
Paid volunteerism (hours) 21 0 118 -
CORPORATE CITIZENSHIP/COMMUNITY
Middle school students impacted
Direct community investment by qualifying educator professional 33,500 15,100 34,200 -
31.1 33.9 34.3 201-1 -
through philanthropy (million USD)† development programs in the year
Company charitable grants – Cumulative middle school students

55 50 60 201-1 -
Education (Target 50%) (%) impacted by qualifying educator
professional development programs 198,480 272,180 354,980 -
Company charitable grants – Military since 2015 (Target 350,000 students
17 13 13 201-1 -
and Veterans (Target 25%) (%) by 2030)§
Company charitable grants – Health ENVIRONMENT*

8 20 13 201-1 -
and Human Services (Target 20%) (%)
Sites with ISO 14001 certification 26 23 22 103 -
Company charitable grants –
4 3 3 201-1 -
Environment (Target 5%) (%) Significant fines and penalties
30,500 0 0 307-1 -
(shown in years paid) ($)
Company in-kind and non-cash
0.3 5.0 0.1 201-1 -
contributions (million USD) Tons of Toxic Release Inventory 284 421 N/A -
Charitable donations as measured

‡ Includes giving through ECHO, matched gifts and employee fundraising.
by Business for Societal Impact 9 26 13 201-1 -
§ Calculation based on teacher maintaining active teaching status or in a school-based setting for three years post professional development experience.
(Company and Foundation) (%)
* The 2019-2020 environmental data for GHG, energy, water and solid waste for Northrop Grumman global facilities has been re-stated to include facilities that were
part of Northrop Grumman’s Orbital ATK acquisition in 2018.
† Includes investments from Northrop Grumman and the Northrop Grumman Foundation; excludes donations from Northrop Grumman to the Northrop Grumman
Foundation.

HAZARDOUS WASTE Energy intensity (Joules/USD sales) 301,231.86 264,087.64 286,981.91 302-3 -
Hazardous waste generation (tons) 4,011 2,836 3,475 306-2 RTE-AE-150a.1 Electricity consumption (MWh) 1,485,704 1,502,611 1,503,053 -
Hazardous waste Renewable electricity

0 0 0 306-2 RT-AE-150a.2 22,097 22,084 24,301 -
(number of reportable spills) consumption (MWh)
Hazardous waste recycled (%) N/A 6.0 1.0 RT-AE-150a.1 Onsite renewable electricity
1,240 1,227 1,289 -
generation (MWh)
NONHAZARDOUS SOLID WASTE
Percentage of electricity
Reuse (tons) 101 966 261 306-2 - 1 1 1 -
that is renewable (%)
Recycling (tons) 19,078 20,975 19,377 306-2 - EMISSIONS
Composting (tons) 652 1,365 880 306-2 - Direct (Scope 1) greenhouse

272,950 231,719 259,321 305-1 -
gas emissions (tonnes CO2e)
Recovery
407 277 789 306-2 -
(including energy recovery) (tons) Indirect (Scope 2) Market-based
greenhouse gas emissions 489,232 468,931 466,514 305-2 -
Landfill (tons) 21,934 21,379 20,498 306-2 - (tonnes CO2e)
Diversion rate (%) 47.0 51.8 49.1 306-2 - Carbon offsets (tonnes CO2e) 11,000 11,000 N/A 305-5 -
ENERGY Total GHG Emissions (Market-based

751,182 689,651 725,835 305-5 -
includes carbon offsets) (tonnes CO2e)
Energy consumption (GJ) 10,193,988 9,718,161 10,245,254 302-1 RT-AE-130a.1
Greenhouse gas emission intensity
Renewable energy consumption (GJ) 79,548 79,501 87,482 - (Scope 1 and Scope 2 – Market- 0.00002220 0.00001874 0.00002033 305-4 -
based) (tonnes CO2e/USD sales)
Percentage of energy
1 1 1 302-1 RT-AE-130a.1
that is renewable (%) Reduction of greenhouse
gas emissions (from 2019 – to N/A -8.2% -3.4% 305-5 -
Percentage of energy supplied show trending) (%)
52 56 53 RT-AE-130a.1
from grid electricity (%)

WATER GOVERNANCE
Water withdrawal (potable) – Members on the Board of Directors 12 13 13 102-18, 102-22 -

1,405,432,942 1,320,987,911 1,422,103,584 303-3 -
Total (gallons)
Independent directors on Board 11 12 12 102-18, 102-22 -
Water withdrawal source (potable) –
194,977,127 259,200,000 210,744,893 303-3 -
Surface water (gallons) Women/minority directors 6 (50%) 6 (46%) 6 (46%) 102-22, 405-1 -
Water withdrawal source (potable) – HEALTH AND SAFETY

354,717,267 280,949,206 418,877,663 303-3 -
Groundwater (gallons)
Work-related fatalities 0 0 0 403-9 -
Water withdrawal source (potable) –
855,738,548 780,838,705 792,481,028 303-3 -
Municipal Supply (gallons) Total case rate (per 100 workers) 0.90 0.96 1.08 403-9, 403-10 -
Water withdrawal (potable and Lost work day rate (per 100 workers) 7.46 10.70 18.61 403-9, 403-10 -
1,422,384,089 1,349,331,110 1,478,010,825 303-3 -
nonpotable) – Total (gallons)
Days away case rate
0.23 0.39 0.56 403-9, 403-10 -
Water withdrawal source (per 100 workers)
(nonpotable) – Municipal 16,864,498 28,305,087 55,879,997 303-3 -
Reclaimed (gallons) PRODUCTS
Water withdrawal source Number of airworthiness

86,648 38,112 27,244 303-3 - 1 1 0 RT-AE-250a.3
(nonpotable) – Rainwater (gallons) directives received
ETHICS AND INTEGRITY Number of airworthiness

100 0 0 RT-AE-250a.3
directives, units affected
OpenLine inquiries 863 565 577 102-17 -
Revenue from alternative energy-
100 0 0 RT-AE-410a.1
OpenLine allegations 1,374 1,578 1,611 102-17 - related products (million USD)
RESEARCH AND DEVELOPMENT AND INNOVATION
Company-sponsored R&D
953 1,100 1,100 201-1 -
expenses (million USD)

SUPPLY CHAIN Total population – people of color (%) 37.3 35.3 36 405-1 -
Percent of small business (%) 38.4 37.2 30.4 102-9 - Total population – veterans (%) 19.6 18.0 17.8 405-1 -
Percent of small Total population – persons

3.7 4.7 4.2 102-9 - 8.1 8.3 8.5 405-1 -
disadvantaged business (SDB) (%) with disabilities (%)
Percent of women-owned Management population – male (%) 72.4 73.4 73.4 405-1 -
7.5 7.5 6.4 102-9 -
small business (WOSB) (%)
Management population – female (%) 27.6 26.6 26.6 405-1 -
Percent of HUBZone small business (%) 3.4 3.3 3.3 102-9 -
Management population – people
28.0 26.6 27.7 405-1 -
Percent of veteran-owned of color (%)
4.7 3.9 3.8 102-9 -
small business (VOSB)(%)
Vice president and above
32.6 32.0 35.4 405-1 -
Percent of service-disabled veteran- population – female (%)
2.0 1.9 2.2 102-9 -
owned small business (SDVOSB) (%)
Vice president and above
TALENT MANAGEMENT, DIVERSITY, EQUITY AND INCLUSION* 18.0 18.0 17.7 405-1 -
population – people of color (%)
Part-time employees 1,373 1,388 1,390 102-8 - NEW HIRES (EXTERNAL)
Employee average age 44 43 44 - Veteran external hires (%) 22.5 21.5 21.4 -
U.S. employees covered by collective Female external hires (%) 24.3 23.3 23.1 -
5.8 4.4 4.4 102-41 -
bargaining agreements (%)
Persons with disabilities
11.3 11.4 10.5 -
Total population – male (%) 73.8 74.9 75.4 405-1 - external hires (Target 7%) (%)
Total population – female (%) 26.2 25.1 24.5 405-1 - People of color external hires (%) 43.1 43.3 41.4 -
* All demographic data reflects U.S. population only

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2021

Selected Awards & Recognitions for 2021 57

temperature rise by 2050. In 2021, we expanded our on-site solar opportunities

NORTHROP GRUMMAN Message From CEO 3

Our Values are what make our company special.

NORTHROP GRUMMAN Our Company & Our Values 4

NORTHROP GRUMMAN Sustainability at Northrop Grumman: Our Approach 5

NET ZERO $39.3 MILLION One of DiversityInc’s “Top 50 Companies for

$1.4 BILLION $1.1 BILLION

in capital investment (CapEx) in R&D investments

$35.7 BILLION 41 MILLION

total sales in 2021 pounds of waste diverted from landfill

Leadership score of A- on the 2021 CDP Support of 14 employee resource

female employees employees of color

female leadership people of color in leadership

NORTHROP GRUMMAN Sustainability at Northrop Grumman: Our Approach 6

NORTHROP GRUMMAN Pioneering Purpose 7

Environment prepared to do our part to support this global vision. As the

Non-Financial well as those of our value chain.

Environmental Sustainability: Reductions NET ZERO GHG EMISSIONS

NORTHROP GRUMMAN Pioneering Purpose 8

2021 GHG PERFORMANCE HIGHLIGHTS SCOPE 1 & SCOPE 2 (TOTAL MTCO2e)

7,110 MT CO2e 1,000,000

Implemented 75 GHG and energy 751,182

Invested in HVAC equipment upgrades, 250,000

1,890 MT CO2e 2019 2020 2021

NORTHROP GRUMMAN Pioneering Purpose 9

ELECTRICITY OPPORTUNITIES of 64 new charging connections across the enterprise to

DRIVING TOWARD ZERO

NORTHROP GRUMMAN Pioneering Purpose 10

Sound environmental management and a commitment to environmental

EHS Management Systems Stakeholder Engagement

It is the policy of Northrop Grumman to conduct operations in a manner that is environmentally

NORTHROP GRUMMAN Pioneering Purpose 11

6.4M GALLONS 41M GALLONS

18M GALLONS 5.6M GALLONS

environmental metrics. experienced in 2020.

2019 2020 2021

NORTHROP GRUMMAN Pioneering Purpose 12

2021 HIGHLIGHTS Northrop Grumman understands that decreasing waste

829,557 LBS 25,000 LBS

62,000 LBS 160,000 LBS

Using Simple Changes

reduction, material recovery, added in April 2021. It is a cost-savings measure, and

2019 2020 2021

NORTHROP GRUMMAN Pioneering Purpose 13

NORTHROP GRUMMAN Pioneering Purpose 14

NORTHROP GRUMMAN Pioneering Innovation 15

NORTHROP GRUMMAN Pioneering Innovation 16

Understanding Monitoring Researching Evaluating Studying Our Sun Investigating

NORTHROP GRUMMAN Pioneering Innovation 17

Systems Engineering Excellence Award:

Quality: Program-specific objectives, including defect rates,

NORTHROP GRUMMAN Pioneering Innovation 18

NORTHROP GRUMMAN Pioneering Innovation 19

NORTHROP GRUMMAN Pioneering Innovation 20

& DEVELOPMENT implementing responsible AI and to refine our approach

NORTHROP GRUMMAN Pioneering Innovation 21

Mentoring Student Buoy Builds

Environmental Sustainability: Reductions NET ZERO GHG EMISSIONS

Quality: Program-specific objectives, including defect rates,

* As of Dec. 31, 2021

* All demographic data reflects U.S. population only