2015 Corporate Responsibility Report

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2015 CEO Message

Our purpose at Northrop Grumman is to provide our customers with products and services that help them meet their critical mission requirements. To do so, we operate with a daily commitment to corporate responsibility and sustainability. We describe those efforts in this 2015 Corporate Responsibility Report including:

• Leadership
• Our Business
• Governance
• Innovation
• Environmental
• People and Culture

Sustainable performance begins with our devotion to creating long-term value for all our stakeholders. This approach requires an organizational focus on creating a diverse and inclusive workforce dedicated to ethics, integrity and compliance. From there we build effective partnerships with suppliers and utilize transparent corporate governance and leadership practices. We champion corporate citizenship programs to advance education, support military service members and their families and collaborate with members of our communities.

The 2015 Corporate Responsibility Report reflects activities that have the potential to significantly affect sustainable performance. Here are some examples from our efforts in 2015:

• As part of our commitment to providing an inclusive work environment, approximately 19,000 Northrop Grumman employees participated in our Employee Resource Groups, which provide opportunities for networking, community outreach, professional development, recruiting and support to the business. We also received a 100 percent score on the 2016 Corporate Equality Index, a national survey on corporate policies and practices related to lesbian, gay, bisexual and transgender (LGBT) workplace equality. Additionally, Northrop Grumman appears on DiversityInc's "Top 50 Companies for Diversity" list.

• We continued to focus on science, technology, engineering and math (STEM) programs to improve education. Our efforts included investing more than $17.4 million from Northrop Grumman contributions, and the Northrop Grumman Foundation, to fund projects globally that make a difference for students and their teachers. In total, in support of the global communities where we live and work, Northrop Grumman and our employees donated more than $31.7 million, including support of military and veterans groups and health and human services initiatives. Our employees complemented that effort by providing more than 30,558 unpaid, volunteer hours.

• For the fourth consecutive year CDP (formerly the Carbon Disclosure Project) recognized Northrop Grumman for our climate change governance, strategy and emissions inventory. In 2015, we received a perfect 100 score and also announced our 2020 goals to reduce water use by 20 percent from 2014 levels, and achieve a 70 percent solid waste diversion rate (waste diverted from landfill).

For their focus and diligent efforts throughout 2015, I want to thank all of our employees. As demonstrated in the following pages, we continue to strive for sustainable top performance.

Wes Bush
Chairman, CEO and president