L3Harris Technologies, Inc. (LHX) — ESG & Values Scores

Environment story

L3Harris discloses minimal quantitative environmental data in its 10-K. The company acknowledges subject to federal, state, and local environmental laws and expects continued compliance costs. However, Scope 1, 2, and 3 emissions are not disclosed; net-zero target year is undisclosed; and no verified investments in physical decarbonization infrastructure are evident. The 10-K mentions environmental remediation obligations and potential facility restrictions but provides no specifics on magnitude or progress. Risk factors emphasize potential for significant environmental liabilities, contamination discovery, and remediation cost volatility. The company's sustainability report (expected in fiscal 2026) is not yet available for audit. Applied CAP rule: supply-chain emissions (Scope 3) undisclosed and likely represent >70% of footprint for a defense contractor relying on complex supply chains; therefore capped at 55.

Criticisms on file

Undisclosed Emissions Data: Company does not report Scope 1, 2, or 3 greenhouse gas emissions in 10-K filing.
Source: L3Harris 10-K SEC filing, Item 1 (Business) and Environmental section; sustainability report not yet published (expected fiscal 2026)
Environmental Remediation Liabilities: 10-K acknowledges reserves for estimated future environmental obligations on real estate assets may prove insufficient; discovery of previously unknown contamination noted as potential material adverse effect.
Source: L3Harris 10-K, Item 1A (Risk Factors) - Environmental Issues section
Hazardous Materials Handling Risk: Company operates with potentially explosive and ignitable energetic materials (rocket propulsion components). Release, unplanned ignition, or explosion could cause facility shutdowns, production delays, and property damage.
Source: L3Harris 10-K, Item 1A (Risk Factors) - Risk of Release, Unplanned Ignition, Explosion section

Disclosed initiatives

Environmental Compliance Program

Company states it is subject to U.S. federal, state, local, and foreign environmental laws and regulations. Expects to continue incurring capital and operating costs for compliance with existing and pending environmental laws.
Digital Transformation & Cloud Migration

Mentioned as part of IT modernization effort; cloud migrations could improve energy efficiency, but no explicit decarbonization target or methodology disclosed.

Social story

L3Harris employs ~45,000 people (90% U.S.-based) with ~18,000 engineers and scientists. Only 6% of U.S. workforce is unionized (covered by collective bargaining agreements), historically renegotiated without significant disruption. The company emphasizes talent attraction, competitive compensation, comprehensive benefits, and safety culture but discloses no CEO-to-median-worker pay ratio, leadership diversity percentages, or turnover metrics in the 10-K. Supply-chain ethics are not addressed; no disclosed human-rights audits or conflict-minerals policies. The 2025 Sustainability Report (forthcoming) may contain additional DEI and social disclosures. Insufficient diversity data and lack of quantified pay-equity commitments constrain scoring.

Criticisms on file

Lack of Diversity Disclosure: 10-K contains no quantified leadership diversity (executive/board women or URM percentages) or total workforce diversity metrics.
Source: L3Harris 10-K, Item 1 (Human Capital) and absence from proxy or sustainability disclosures in filed documents
No CEO-to-Worker Pay Ratio: Company does not disclose CEO compensation relative to median worker pay in 10-K or provided proxy materials.
Source: L3Harris 10-K; standard SEC pay-ratio disclosure not evident in provided excerpts
Supply-Chain Labor & Human-Rights: No disclosed audit, conflict-minerals policy, or living-wage commitment for supply-chain suppliers and subcontractors.
Source: L3Harris 10-K mentions dependence on subcontractors and suppliers but no human-rights or labor-standard audit cited

Disclosed initiatives

Talent Attraction & Retention Strategy

Hired ~6,000 new employees in fiscal 2025. Focus on balanced talent portfolio, attracting diverse perspectives, offering professional development, career growth, and competitive total compensation including health care, retirement, paid parental leave, and discretionary PTO.

Supports workforce stability and recruitment, though no quantified diversity targets or outcomes disclosed.
Health & Safety Culture

Company prioritizes safety through proactive culture, programs to eliminate workplace incidents, risks, and hazards. Regular performance review and monitoring stated.

Aims to reduce workplace incidents, but no specific safety metrics (TRIR, LTIR) disclosed in 10-K.
Security Clearance & Technical Talent Development

Company emphasizes attracting and retaining employees with U.S. Government security clearances (top secret and above) and technical/engineering backgrounds.

Critical for competitive positioning in defense contracting; supports human capital strategy but does not address labor-rights or pay-equity issues.

Governance story

L3Harris does not disclose board independence percentage, share structure classification, or annual lobbying expenditures in the provided 10-K excerpt. The company acknowledges compliance programs for export controls (ITAR, EAR), FCPA, and false-claims laws, but notes it has been adversely impacted by employee/agent misconduct in the past. No current antitrust, consumer-protection, or financial-fraud regulatory proceedings are explicitly described in the 10-K excerpt, though the company faces ongoing government audits and contract termination risks. The company's reliance on government contracts (75% of revenue) and cost-reimbursement structures create potential for audit adjustments and contractual disputes. Absence of disclosed board metrics and lobbying data limits governance scoring precision.

Criticisms on file

Undisclosed Board Independence & Share Structure: 10-K does not disclose board independence percentage or presence/absence of dual-class voting structure.
Source: L3Harris 10-K excerpt does not contain board composition or voting-structure disclosures; proxy statement would be required for full transparency
Lobbying Expenditures Undisclosed: Annual lobbying spend not disclosed in provided 10-K excerpt; company notes that 'lobbying costs' are examples of costs unallowable for reimbursement under government contracts, indicating lobbying activity exists but magnitude is not transparent.
Source: L3Harris 10-K, Item 1 (Government Contracts) and Item 1A (Risk Factors) reference lobbying costs as unallowable expenses; specific lobbying spend and targets not disclosed in excerpt
Past Compliance Violations: Company acknowledges it 'has been adversely impacted' by reckless or criminal acts of employees, agents, or business partners in the past. Notes potential for data security lapses, compromise of personal/classified information, and misconduct.
Source: L3Harris 10-K, Item 1A (Risk Factors) - Our reputation and ability to do business section
Government Contract Audit Exposure: U.S. Government contracts subject to oversight audits that can result in cost adjustments, revenue reductions, contract termination, profit forfeiture, suspension/debarment. Company may begin performance under undefinitized contract actions where government can unilaterally definitize terms.
Source: L3Harris 10-K, Item 1A (Risk Factors) - The application or impact of negative audit findings section

Disclosed initiatives

Compliance Controls & Training

Company has implemented controls, training, policies, and procedures designed to ensure compliance with FCPA, export controls (ITAR, EAR), false-claims laws, procurement integrity, cost accounting, billing, competition, information security, data privacy, and contract terms.

Addresses legal/regulatory risk mitigation; however, company acknowledges past adverse impacts from employee/agent misconduct, suggesting control effectiveness gaps.
Cybersecurity Risk Management

Global Technology and Business Solutions organization (led by CIO with 100+ cybersecurity staff) integrates cybersecurity into enterprise risk management. ISO 27001 certified Information Security Management System. Security Operations Center monitors activity, scans for vulnerabilities, reports to Board. Membership in DoD Defense Industrial Base Collaborative Information Sharing Environment and NSA Cybersecurity Collaboration Center.

Demonstrates structured cybersecurity governance and third-party threat-intelligence sharing; no material cybersecurity incidents reported to date.
Enterprise Risk Management (ERM) Process

Administered by management with input from business segments and functions. Cybersecurity and other material risks reflected in enterprise risk 'heat map' and reported to Board of Directors with mitigation plans.

Provides systematic governance framework for risk identification and Board oversight.

These are Missionomics' own editorial scores — directional signals built from disclosed facts under a published method, not certifications or definitive ratings of L3Harris Technologies, 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 L3Harris Technologies, Inc. in the app for interactive charts and portfolio building.

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