Leidos Holdings, Inc. (LDOS) — ESG & Values Scores

Environment story

Leidos discloses minimal environmental metrics and no quantified Scope 1, 2, or 3 emissions targets. The company acknowledges climate-change physical and transition risks but provides no baseline emissions data, renewable energy percentage, or net-zero commitment year. No evidence of operational decarbonization investments; company states inability to predict materiality of climate-related costs. Risk disclosure acknowledges hazardous-substance handling at Hanford Site and other facilities but lacks remediation cost transparency. Greenwashing signals present: company acknowledges ESG reporting expectations yet provides no verifiable climate roadmap or third-party assurance. Penalty applied for undisclosed Scope 3 emissions (defense-sector supply chain), absent net-zero target date, and lack of direct decarbonization evidence.

Criticisms on file

Undisclosed Scope 1 and Scope 2 Emissions; No Net-Zero Target Year
Source: LDOS 10-K Item 1A Risk Factors; no quantified emissions or target year disclosed in filing
Hazardous Substance Handling and Environmental Liability; Hanford Site Operations
Source: LDOS 10-K Risk Factors: 'Our services and operations, which sometimes involve using, handling, or disposing of hazardous substances, are subject to numerous environmental, health and safety laws and regulations' including infrastructure and site services at Hanford Site in southeastern Washington
Climate Change and Transition Risk Uncertainty; No Materiality Quantification
Source: LDOS 10-K Risk Factors: 'We monitor developments in climate change-related laws, regulations and policies for their potential effect on us. However, we currently are not able to accurately predict the materiality of any potential costs associated with such developments.'
Supply Chain Environmental Exposure Undisclosed
Source: LDOS 10-K Risk Factors acknowledge climate change and environmental regulation risks but provide no supply-chain emissions audit or mitigation strategy for defense-sector subcontractors

Disclosed initiatives

ESG Strategy and Reporting

Company acknowledges growing stakeholder expectations on ESG practices and disclosures, including environmental management and climate impact. States intent to monitor and report on ESG-related practices.

Monitoring and reporting framework only; no quantified targets or timelines disclosed.
Climate Risk Monitoring

Company monitors developments in climate-change-related laws, regulations, and policies for potential effects on operations.

Defensive posture only; no proactive mitigation or decarbonization roadmap identified.
Environmental Compliance Programs

Company operates under federal, state, and local environmental laws and regulations including Clean Air Act and Clean Water Act compliance.

Compliance-driven; no evidence of investments in physical decarbonization or renewable energy transition.

Social story

Leidos discloses minimal social metrics. No published CEO-to-median-worker pay ratio, workforce turnover rate, or formal diversity targets for executive/technical leadership are stated in the 10-K. Company acknowledges intense competition for skilled talent, security-clearance requirements, and executive-order constraints on incentive compensation; identifies talent retention as a strategic risk. No evidence of union suppression or active labor disputes in past 24 months. Supply-chain labor practices and human-rights audits are not disclosed. Diversity and inclusion policies are mentioned as ESG expectations but without quantified workforce or leadership representation percentages. No documented civil-rights audit, HRC Equality Index score, or EEO-1 detailed disclosure provided in filing.

Criticisms on file

Talent Retention and Recruitment Challenges; Executive-Order Compensation Constraints
Source: LDOS 10-K Risk Factors: 'As a result of the executive order titled "Prioritizing the Warfighter in Defense Contracting," future contracts (including renewals) are expected to include provisions restricting executive incentive compensation in a manner that is contingent on certain specified criteria... which may result in employment by us not being as attractive to key employees than alternatives'
No Disclosed Workforce or Leadership Diversity Metrics
Source: LDOS 10-K; filing does not provide EEO-1 workforce breakdown, executive-leadership gender/racial representation percentages, or formal diversity targets
Supply-Chain Labor Practices Undisclosed
Source: LDOS 10-K does not disclose supplier audits, forced-labor risk assessments, or human-rights due diligence in supply chain

Disclosed initiatives

Talent Attraction and Retention Programs

Company states continued commitment to attracting, retaining, and developing qualified employees with critical skills, particularly security-clearance holders and technical personnel.

No quantified diversity targets or retention metrics disclosed; competitive compensation constraints due to executive order restrictions on incentive compensation acknowledged.
Diversity, Equity, and Inclusion Expectations

Company acknowledges increasing attention from stakeholders on DEI practices and disclosures, including workplace culture and community investment.

No baseline metrics, targets, or programs detailed in 10-K; aspirational only.
Succession Planning

Company states reliance on senior leadership team continuity and succession planning capabilities.

No transparency on leadership pipeline diversity or succession timelines.

Governance story

Leidos operates with a single-class share structure (no dual-class voting penalty). Board independence percentage is not disclosed in the 10-K excerpt provided; governance structure details are limited. Company acknowledges substantial government contract compliance obligations, including DCAA audits, DCMA reviews, and organizational-conflict-of-interest (OCI) rules. Multiple material regulatory and legal risks identified: CMMC cybersecurity certification requirements for contract eligibility, data-privacy and security compliance complexity, and evolving FAR procurement reforms. No lobbying expenditure amount is disclosed in the filing. Significant governance controversies include absence of materiality assessment on climate-related regulatory costs, potential goodwill impairment risks (47% of assets as of Jan 2, 2026), and acknowledged compliance complexity driving administrative burden. No evidence of active shareholder-proposal litigation or anti-climate advocacy.

Criticisms on file

Evolving FAR Procurement Reform Uncertainty; Executive Order 14275 'Restoring Common Sense to Federal Procurement'
Source: LDOS 10-K Risk Factors: Company acknowledges potential reforms that could 'create uncertainty in our contracting environment' and result in 'changes to procurement processes, evaluation criteria, cost allowability, compliance obligations, or reporting requirements that could increase our administrative burden and operating costs.'
Cybersecurity and CMMC Certification Dependency
Source: LDOS 10-K Risk Factors: 'We are also increasingly subject to customer-driven cybersecurity certification requirements, including but not limited to CMMC, which are expected to be necessary to win future contracts. ... To the extent we are unable to achieve or maintain certification at the level required for a particular contract award, we will be unable to bid on such contract awards or follow-on awards for existing work with the DoD, which could adversely impact our revenue and our profitability.'
Goodwill Impairment Risk; 47% of Total Assets as of Jan 2, 2026
Source: LDOS 10-K: 'As of January 2, 2026, goodwill was 47% of our total assets. ... Adverse changes in fiscal and economic conditions, such as those related to federal budget cuts and the nation's debt ceiling, deteriorating market conditions for companies in our industry and unfavorable changes in discount rates could also result in an impairment of goodwill.'
Open DCAA Indirect Cost Audits; FY2023 and Subsequent Years
Source: LDOS 10-K Risk Factors: 'As of January 2, 2026, indirect cost audits by the DCAA remain open for fiscal 2023 and subsequent fiscal years. Although we have recorded contract revenues based upon our estimate of costs that we believe will be approved upon final audit or review, we cannot predict the outcome of any ongoing or future audits or reviews and adjustments.'
No Disclosed Board Independence Percentage or Governance Committee Composition
Source: LDOS 10-K excerpt provided does not include board-committee or independence disclosure details

Disclosed initiatives

Compliance and Procurement Regulation Management

Company maintains compliance programs addressing FAR, DFARS, CMMC, and evolving federal procurement regulations. Continuous monitoring of organizational-conflict-of-interest rules and contract administration requirements.

Administrative burden acknowledged; reforms under Executive Order 14275 expected to increase complexity and costs.
Data Privacy and Security Controls

Company implements NIST Special Publication controls on government networks and pursues CMMC third-party certification to remain eligible for DoD contract awards.

Certification-dependent business model; loss of CMMC certification would disqualify from DoD contracting.
Anti-Corruption and FCPA Compliance

Company maintains policies, procedures, and training programs to prevent employee/contractor misconduct, fraud, and FCPA violations in international operations.

Policies in place; whistleblower and investigation risks remain material, particularly as international footprint expands.
Board and Executive Oversight

Company acknowledges board oversight of risks including cybersecurity, geopolitical events, federal budget impacts, and technology adoption (AI).

Governance structure details not disclosed in excerpted filing sections.

These are Missionomics' own editorial scores — directional signals built from disclosed facts under a published method, not certifications or definitive ratings of Leidos Holdings, Inc.. Coverage and confidence vary by data point, and figures can lag real-world changes. Read the full Methodology for sourcing, scoring, and correction details — or open Leidos Holdings, Inc. in the app for interactive charts and portfolio building.

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