SUSTAINABILITYSUSTAINABILITYREPORTREPORT 2021
2020

SUSTAINABILITY IS NOT JUST FOR OUR
COMPANY. IT IS FOR OUR WORLD. SOMEPROGRESS MAY BE SLOW. SOME MAY BE
FAST. BUT IT WILL ALWAYS BE FORWARD.

L3Harris has prioritized investments in end-to-end satellite solutionsin spacecraft, payloads, ground software and advanced algorithms.
  2

Our values of Integrity, Excellence and Respect
are at the heart of everything we do and inspire
our team members around the globe.

INTEGRITY

EXCELLENCERESPECTOUR DECISIONS AND ACTIONSWE PERFORM AT THE HIGHEST

WE TACKLE EVERY CHALLENGE

ARE BASED ON ETHICAL, HONESTLEVELS THROUGH FLAWLESSWITH A SUSTAINABLE,

AND ACCOUNTABLE PRACTICES.

EXECUTION, CUSTOMER FOCUS

COMMUNITY-MINDED AND

AND CONSTANT INNOVATION.

INCLUSIVE APPROACH.

  3

TABLE OF CONTENTS
05

APPROACH

05	A MESSAGE FROMCHRISTOPHER E. KUBASIK

25	SUSTAINABLE PRODUCTS/SERVICES AND PACKAGING
MATERIALS
26

ENERGY AND CLIMATE CHANGE

29

WATER

31

WASTE AND HAZARDOUS WASTE

FOCUS AREAS

34

SOCIAL

10

STORIES35

HUMAN CAPITAL

11

PRODUCT TECHNOLOGY38	DIVERSITY, EQUITYAND INCLUSION

12ENERGY AND CLIMATE CHANGE

40HEALTH AND SAFETY

13

DIVERSITY, EQUITY AND
INCLUSION

42

HUMAN RIGHTS

43

COMMUNITY

06

ABOUT L3HARRIS

07

HIGHLIGHTS OF 2021

08

STAKEHOLDER ENGAGEMENT

09

14

COMMUNITY

15

GOVERNANCE

44	SUPPLY CHAIN
MANAGEMENT

16

GOVERNANCE

45	DATA PRIVACY ANDCYBERSECURITY

17

CORPORATE GOVERNANCE

19

BUSINESS ETHICS

21

ANTI-CORRUPTION

22 	LOBBYING AND POLITICALADVOCACY23

ENVIRONMENTAL

24	EHS AND SUSTAINABILITYMANAGEMENT SYSTEMRESOURCES
2021 GRI/SASB/TCFD/UN SDG INDEX
2021 DIVERSITY, EQUITY & INCLUSION REPORT
2021 ANNUAL REPORT
2022 PROXY STATEMENTCODE OF CONDUCTSUSTAINABILITY REPORT LANDING PAGE
CORPORATE WEBSITE

COVER IMAGE: The FVR-90 unmanned
aircraft system can fly safety at highaltitudes while providing communications
and imagery back to command centers
staffed by scientists, firefighters or others.
HERE: L3Harris supports assembly,
integration and testing of NASA’s
James Webb Space Telescope.

  4

APPROACHSTORIESGOVERNANCEENVIRONMENTAL

SOCIALVICE CHAIR AND CEO LETTERA MESSAGE FROMCHRISTOPHER E. KUBASIK
Our 47,000 employees continue toprove they can adapt and perform
in nearly any setting. In this “newnormal,” we bolstered initiatives tokeep our employees safe and healthy,
while working with our supplierbase to meet customer expectations
throughout evolving COVID-19
challenges.

Protecting everyday life is central
to our mission at L3Harris — fromdeveloping innovative technologythat safeguards our nation and allies,
to our unwavering commitment tosustainability. Despite challenges
during the pandemic, our L3Harris
team remained focused on creatingvital solutions safely and withintegrity, excellence, and respect
at the forefront.
These values continue to guideour Environmental, Social andGovernance (ESG) strategy.
Our annual Sustainability Report
showcases our progress andtransparency on employee initiatives,
environmental goals, community
efforts and governance standards.

In 2021, we also took a more activerole in monitoring climate data to
mitigate long-term risk throughout
the L3Harris global portfolio.
We initiated alignment with the
Task Force on Climate-Related
Financial Disclosures to advance ourtransparency in climate-related risks
and opportunities.
We remain keenly focused on agreenhouse gas (GHG) emissions
reduction goal of 30% by 2026,
reaching beyond enterprise
opportunities to identify renewableenergy projects across our business.
A major win this year: the start ofcommercial operation for an
L3Harris-supported solar farmthat will help eliminate roughly
110,000 metric tons of CO2 per year.

Supporting our community also
extends to our neighbors in the areas
where we live and work. We focus
our community engagement strategy
in three areas: STEM education,
mission-aligned programs, andcommunity development. Despite thepandemic, our employees volunteered
105,000 hours this year — far
exceeding our enterprise goal.

ethical, disruptive company thatstrives for excellence far beyondbase policies and standards.

The thoughtfulness of our exceptional
employees during work and off-workhours is a testament to our vibrant
L3Harris culture of solidarity. We
strive for true diversity of thought byhiring efficiently, managing differently,
and advancing with a purpose. We
also invest key time and resources
to empower diverse, equitable andinclusive choices for our people atevery level within the organization.

I am grateful to our exceptional teamat L3Harris as well as our supportive
Board. I am confident — as we holdourselves accountable to transparent,
meaningful goals — we will continue tomake progress toward a sustainable
future for all.

Maintaining our success whileremaining accountable to all
stakeholders are top drivers for our
Board of Directors — leaders who
were long-serving military officers,
senior business executives, academic
fellows, and a U.S. Ambassador
to a crucial national security ally.
Together, we aim to cultivate an

As we consider how long-term national
security is defined, we recognize
responsible corporate governance isessential to creating sustainable value
for all, especially for our customers,
our families, and our communities.

Sincerely,

CHRISTOPHER E. KUBASIK
Vice Chair and Chief Executive Officer

L3HARRIS SUSTAINABILITY REPORT 2021  52021   5APPROACHSTORIESGOVERNANCEENVIRONMENTAL

SOCIALABOUT L3HARRIS
L3Harris Technologies (L3Harris) is an agile global
aerospace and defense technology innovator, delivering
end-to-end solutions that meet customers’ missioncritical needs. The company provides advanced defense
and commercial technologies across space, air, land, sea
and cyber domains. L3Harris has more than $17 billion in
annual revenue and 47,000 employees, with customers inmore than 100 countries.
$17B

annual revenue~47K

L3Harris
employees

L3Harris customers include
departments and agencies of theUnited States (U.S.) government,
foreign governments, and other large
defense contractors. The company’s
products, systems and services
have defense and civil government
applications, as well as commercial
applications.
L3Harris’ operations are structured
primarily around the products,
systems and services it sells and the~19K

scientists &engineers>100

INTEGRATED MISSION SYSTEMSMulti-mission intelligence,
surveillance andreconnaissance systems;
integrated electricaland electronic systems
for maritime platforms;
advanced electro-optical andinfrared solutions; defense
aviation; commercial aviation
products; and commercial
pilot training operations.

SPACE AND AIRBORNE SYSTEMSSpace payloads, sensors
and full-mission solutions;classified intelligence andcyber defense; avionics;
electronic warfare; andmission networks for
air traffic management
operations.

countries
supportedmarkets it serves. The company’sorganizational structure features
three operating business segments.
Headquartered in Melbourne,
Florida, the company is publicly
traded on the New York Stock
Exchange (Symbol: LHX).
TRANSPARENCY APPROACH
The L3Harris Sustainability Reportprovides information to stakeholders
about the company’s environmental,social and governance (ESG) program.

This report aligns with frameworks
provided by the Global Reporting
Initiative (GRI) and the Sustainability
Accounting Standards Board (SASB)
for Aerospace & Defense standards.
This year’s report initiates supportof the Task Force for ClimateRelated Financial Disclosures (TCFD)
and United Nations Sustainable
Development Goals (UN SDGs). See
the GRI/SASB/TCFD/UN SDG Index
for our 2021 disclosures.

NOTE: L3Harris reorganized the core businesses on Jan. 1, 2022 by moving from four to three segments.
The Aviation Systems teams were aligned under Integrated Mission Systems and Space and Airborne Systems.

Image courtesy of U.S. Air ForceCOMMUNICATION SYSTEMS

Tactical communications
with global communications
solutions; broadband
communications; integrated
vision solutions; and public
safety radios, systemapplications and equipment.

L3HARRIS SUSTAINABILITY REPORT 2021   6

APPROACHSTORIESGOVERNANCEENVIRONMENTAL

SOCIALHIGHLIGHTS OF 2021

ENVIRONMENTAL

SOCIAL

GOVERNANCE

78,763105,000

BRC

100 MW

2021

100%

A-

39

100%

metric ton carbon dioxide
equivalent in GHG emissions
reduced since 2019of renewable energy to beprovided annually from the
Elm Branch Solar Farm virtual
power purchase agreement

CDP Water scorevolunteer hours completed in
2021, exceeding company goalof 65,000

Fortune 100 best companies
to work for recognitionsocial impact grants awarded
to organizations affected by
COVID-19, reaching more than
217k people across the U.S.

Business Resiliency Council
established for Environmental
Risk Management processscore on the Human Rights
Campaign Corporate Equality
Index 2021

of employees trained inanti-corruption policies andprocedures

73

840

100%

23%

4%

100%

energy efficiency programs
identified for a projectedannual savings ofapproximately 19,500,000 kWh

reduction in water use
since 201948%

solid waste diversion rate

new graduate hires, meetinggoal of >10% of annual hiring

decrease in Total Recordable
Injury Rate from 2020 to 2021

of employees trained on
Global Trade Compliance
Policyof employees trained on
Human Trafficking Policy

100%of suppliers participated in a
supplier screening process
L3HARRIS SUSTAINABILITY REPORT 2021  72021   7APPROACHSTORIESGOVERNANCEENVIRONMENTAL

SOCIALSTAKEHOLDER ENGAGEMENT
L3Harris takes a holistic
view of its business and its
role in society. The company
is committed to serving all
stakeholders — employees,
customers, shareholders,
suppliers and community
partners, among others.
The company’s 2020 materiality
assessment incorporated perspectives
from key stakeholders to help develop
and implement the ESG strategy.
L3Harris continues to strengthen
stakeholder engagement on an ongoing basis. The company plans tocomplete an updated materiality
assessment in 2023 with direct
stakeholder engagement.

STAKEHOLDER GROUP

EXAMPLES OF ENGAGEMENT CHANNELSKEY TOPICS
Corporate governance
Human capital

Employees

Comprehensive employee surveys, working groups, Employee Resource
Groups (ERGs), intranet, emails, e-newsletters

Diversity, equity and inclusion
Workplace health and safety
Data privacy and cybersecurity
Business ethics

Customers

Meetings, virtual and in-person trade shows, regular interaction withgovernment officials and regulators, customer service feedback

Anti-corruption
Sustainable products/services and packaging materials
Supply chain

Suppliers

Sales meetings, conferences, forums

Business ethics
Human rights
Conflict minerals
All environmental topics

Community

Meetings with community partners, volunteer events

Community engagement
Diversity, equity and inclusion

Investors

Earnings calls, meetings with shareholders and analysts, publications offinancial results and presentations, participation in ESG ratings

All topics
Supply chain

Industry Peers

Involvement in industry associations

All environmental topics
Diversity, equity and inclusion

NOTE: The table above provides examples of key engagement methods with main stakeholder groups, but is not an exhaustive list.

L3HARRIS SUSTAINABILITY REPORT 2021   8

APPROACHSTORIESGOVERNANCEENVIRONMENTAL

SOCIAL

FOCUS AREAS
As L3Harris implements its ESG strategy and reports on
progress, the company will continue to engage broader
stakeholder groups to enhance its approach, strengthen
initiatives and maintain a focus of continuous improvementon the ESG program.
As an aerospace and defense
company, L3Harris manages andaddresses a broad range of ESG
issues. This Sustainability Reportfocuses on key topics and ESG
impacts and opportunities relevantto the business and stakeholders.
Understanding and prioritizing the
ESG topics on which the businesshas the biggest impact allows thecompany to focus and report on the
key issues.

In 2020, L3Harris conducted a formalmateriality assessment to establish
the ESG program. Through key
stakeholder input and informationcollected from various sources andactivities, the company identified
the material issues shown in thematrix. These material topics havenot changed as there has beenno significant event or shift within
L3Harris in regard to ESG. The next
formal materiality assessment isscheduled to take place in 2023,
unless the need arises beforehand.

The company’s sustainability initiatives focus on areas that most impact the business based on a global
materiality assessment.

MATERIAL TOPIC IMPACTS
HIGH
Business ethics
GOVERNANCE

Corporate governance

MEDIUMLOW Lobbying and politicaladvocacy

Anti-corruption Research, development
and innovation

Health and safety

Conflict minerals

Human rights Sustainable products/
services and packaging
materials

Water Waste and hazardous
waste

Land, forest, biodiversity

Community
SOCIAL Data privacy andcybersecurity Diversity, equity andinclusion
Supply chain
Product safety/quality
Human capital
Energy, climate change

ENVIRONMENTAL

Criteria air pollutants EHS and sustainability
management systems
NOTE: Criteria air pollutants does not include GHG emissions.
L3HARRIS SUSTAINABILITY REPORT 2021   9

APPROACHSTORIESSTORIESGOVERNANCEENVIRONMENTAL

SOCIALAPPROACHSTORIESGOVERNANCEENVIRONMENTAL

SOCIALPRODUCT TECHNOLOGYTRACKING DATA IN THE
TOUGHEST ENVIRONMENTS
Product technology in numbers:
70: L3HARRIS

payloads and components
have been on board every
U.S. GPS satellite — morethan 70 missions sincethe 1970s

3X: L3HARRIS

next-generation satellites
are three times moreaccurate and have eighttimes stronger antijamming capabilities

L3HARRIS engineering teams havebeen creating solutions to collectdata and support environmental
sustainability — from space to Earth.

800+ YEARS
of cumulative
on-orbit operations

Since the 1950s, the company’s Global
Positioning System (GPS) technology
has been key to tracking weather
patterns. The National Oceanic andAtmospheric Administration (NOAA)
partnered with L3Harris to equip
Geostationary Operation Environmental
Satellites (GOES) with our Advanced
Baseline Imager (ABI) instruments
to collect weather data; a task that
becomes more crucial as the intensityof severe weather events increases.

“

Resiliency is the name of thegame as we move forward.

”— Todd Rimbey, Vice President &General Manager, Advanced Systems& Technologies, L3Harris

L3Harris GPS satellites also play a
critical role in tracking GHG emissions.
Data collected from the ground canbe incomplete, but the view from12,600 miles up is clear. L3Harris’
thermal and near infrared sensor on
the Greenhouse Gases Observing
Satellite-2 (GOSAT-2) measurescarbon dioxide, methane and carbon
monoxide, accurately differentiating
between natural and man-madeemissions.
Another critical data collection
technology is the FVR-90 (Fixed wing,
Vertical takeoff and landing, andRotator), unmanned aerial systemequipped with Hybrid Quadrotor
technology, which excels at collecting
data from tough environments while
keeping operators safe. Without
human crews, this aircraft can tolerate
extreme conditions for extended
periods, allowing fewer and longer
flights while saving fuel. FVR-90 has
been instrumental in tracking theseasonal break up of Arctic Sea ice
and shifting seal and fish populations.
The flights can capture more complete
data going low and slow, which cannot
be done safely with a manned aircraft.

L3HARRIS SUSTAINABILITY REPORT 2021   11APPROACHSTORIESGOVERNANCEENVIRONMENTAL

SOCIALENERGY/CLIMATE CHANGE

INVESTING IN RENEWABLE ENERGY
CREATES CASCADING BENEFITS
Elm Branch Solar Farm in numbers:~25%
REDUCTION

in company Scope 2 GHG
emissions from purchased
electricity

250
CONSTRUCTION
jobs were created

L3HARRIS is committed to fighting
climate change by reducing GHG
emissions and energy consumption.
We are investing in various solutions
to meet our long-term GHG reduction
target including investing in renewableenergy. In June 2020, L3Harris
signed a virtual power purchaseagreement with Lightsource bp that
resulted in a new solar farm project,
Elm Branch. L3Harris committed to a

50
VETERANS
gained new skills
through anapprenticeshipprogram“had created approximately 250
construction jobs and, through anapprenticeship program, 50 veteransgained new skills and were introduced
to career paths in renewable energy.
L3Harris’ investment in the solar farmproject created benefits beyond
contributing to our progress towards
reducing our GHG emissions by 30%
by 2026.

This solar project reinforces our commitment to sustainability andreducing our environmental footprint. It serves as a model of thebenefits that shared goals among several organizations can create tosupport our community and the environment.

”— Byron Green, Vice President, Global Operations, L3Harris

perennial purchase of 100 megawattsof capacity and the environmental
attributes. The total project iscomprised of more than 360,000 solar
panels across approximately 1,350
acres of land.
The Elm Branch Solar Farm brokeground at the end of 2020. By its
completion in late 2021, project
partners McCarthy Building Companies
and Adaptive Construction Services

The solar farm provided veteransand others valuable job opportunities
while strengthening local economies
with projected revenue for local
landowners through long-term landleases. The project also helped fostera healthier environment and grew
the renewable energy pipeline thatenables other businesses to lower
their carbon footprints all while
increasing U.S. energy security andindependence.
L3HARRIS SUSTAINABILITY REPORT 2021   12

APPROACHSTORIESGOVERNANCEENVIRONMENTAL

SOCIAL

DIVERSITY, EQUITY & INCLUSION (DE&I)

SUPPORTING EQUITYAND EQUALITY
DE&I in numbers:
9 ERGS

with 70+ chaptersworldwide, engaging
7,800 unique members

HALF OF OUR

U.S. workforce will be
women and at least a third
will be persons of color

26%of overall workforce
currently personsof color

L3HARRIS prioritizes and invests
significant resources in cultivating
a diverse workforce and creating
an inclusive work environment as
described in the 2021 Diversity, Equity
and Inclusion (DE&I) Annual Report.
The company’s values of integrity,
excellence and respect, along with theCode of Conduct, align with the DE&I
efforts, and L3Harris works hard toembed these tenets into every level ofthe organization.
In 2021, L3Harris joined the Human
Rights Campaign Business Coalition
for the Equality Act along with morethan 500 other U.S. companies.
L3Harris leadership and the PRIDE
Employee Resource Group also
launched the LGBTQ+ Allyship
Program. More than 1,000 employees
in 10 countries have taken the Allyship
Program Pledge to Advocate, Learn,
Listen and say “Yes” to being an ally.
Program materials are available forall employees to learn about LGBTQ+
concerns and how to help create asafe and respectful workplace.

Another example of our commitment
to DE&I in 2021 was our virtual
Women in Leadership Conference,
which hosted more than 600
women and allies. Topics included
the advancement of women in
the workplace, the role of DE&I in
fostering an empowering culture,
and allyship as an important tool forachieving gender equity. L3Harris
women leaders discussed how
simple actions by male allies canhave a big impact, such as advocating
for opportunities for womencolleagues and publicly praisingaccomplishments.

“

To be a trusted disruptor anddeliver innovative solutions
for our customers, we needto leverage the ideas of all
our employees. To drive that
innovation, we continue toactively engage with our
employees.

”— Christopher E. Kubasik,
Vice Chair and CEO, L3Harris

L3HARRIS SUSTAINABILITY REPORT 2021   13APPROACHSTORIESGOVERNANCEENVIRONMENTAL

SOCIALCOMMUNITY

LIFT VOLUNTEERSROCKET PAST GOAL
L3HARRIS has always known that
community building is essential
to success. L3Harris Investing forTomorrow (LIFT) is the signature
program underwritten by the
L3Harris Foundation and facilitatedby the company; but powered by thepassion and dedication of employees.

Community in numbers:
1,169

completed projects
surpassed the previous
record by roughly 50%+1,000projects completed in
2021 for the first time

105,000

total volunteer hours in
2021 beat the previous
record by nearly 50,000
hours

L3Harris Employee Resource Group(ERG) members are some of the mostenthusiastic volunteers. LIFT’s 2021
competition challenged our ERGs topost the most volunteer hours andhighest member participation between
June 1–August 31. The two winninggroups in 2021 reached 3,524 hours
and 8.5% participation. In that shorttime, ERGs made a big impact with theirefforts. Throughout 2021, L3Harriscompleted more than 40,000 volunteer
hours beyond our goal of 65,000 hours,
reaching 105,000 by year end. We also“

completed more projects under eachvolunteer pillar than ever before, fora total of 1,169 projects: 478 STEM
(education); 148 Mission Aligned(first responders & military); and 543
Community (local initiatives).
Many volunteers across eight states
participated in the annual Read AcrossAmerica Day. Company volunteers
introduced a variety of literature tosecond graders using books withdiverse characters to emphasize there
are scientists, heroes and leadersfrom all walks of life.
L3Harris employees also signed up to
mentor students on 47 robotics teams
across 15 states for the 2021/2022
school year. Employees have been
guiding the teams’ engineering
efforts and take part in competitions
nationwide.

L3Harris volunteers will help students learn real-world problemsolving skills through team collaborations and hands-on
competitions — an approach that has led to some of today’s greatest
innovations. We are proud to support programs that help increaseinterest in STEM and foster much-needed talent.

”— Michelle L. Turner, Senior Vice President and Chief Financial Officer, L3Harris
L3HARRIS SUSTAINABILITY REPORT 2021   14

APPROACHSTORIESGOVERNANCEENVIRONMENTAL

SOCIAL

GOVERNANCE

MAINTAINING STRICTTRADE COMPLIANCE
L3Harris sells advanced and capable products, technology
and services globally. The company is committed to conducting
business ethically, with trusted partners while following all
applicable domestic and international regulations related tothese transactions. L3Harris also maintains stringent internal
processes to ensure that all company technologies are provided
to approved buyers and end-users.

“

Trade compliance requires the cooperation and shared responsibilityof all L3Harris employees. Every employee is required to take annual
trade education and must do his or her part to ensure no transaction
occurs that is contrary to the trade regulations. Any questions or
knowledge of an actual or suspected compliance issue or violationmust be immediately reported to Global Trade Compliance
Professionals, who are likewise certified on an annual basis.

”— Bill Wade, Vice President, Global Trade Compliance, L3Harris

OUR products and sales are controlled
by the International Traffic in Arms
Regulations (ITAR) and the Export
Administration (EAR). Additionally,
L3Harris’ membership in U.S.
Customs and Border Protection’s
Customs Trade Partnership (CTPAT)
program augments the existing Trade
Compliance program.
L3Harris has establishedcomprehensive training materials
ensuring that all employees receive
Trade Compliance training relating totheir function. The company’s approachto strategic licensing ensures L3Harrisknows the product, the end use andthe end users involved in the sale.

L3Harris codified strategic licensing
in a specific corporate procedure.
Moreover, L3Harris maintains athorough restricted party screening
process across the enterprise to checkfor prohibited business partners andtransactions.
We complete jurisdiction andclassifications via a robust process
to determine applicable regulatory
controls of our products. Additionally,
the Trade Compliance function reports
to our legal department ensuring
proper legal controls and complianceprotocols are followed.

L3HARRIS SUSTAINABILITY REPORT 2021   15

APPROACHAPPROACH

GOVERNANCE
GRI/SASBDISCLOSURES

L3Harris technology undergoes extensive
testing to ensure operations
in even the harshest environments.

STORIESSTORIESGOVERNANCE
GOVERNANCEENVIRONMENTAL
ENVIRONMENTAL

SOCIAL
SOCIALAPPROACHCORPORATE GOVERNANCE
GRI 102-18
GRI 102-22
GRI 102-23
GRI 102-26
GRI 102-31

Governance structure of the organization
Composition of the board and its committees
Chair of the highest governance bodyRole of highest governance body in setting purpose, values, and strategy
Review of economic, environmental, and social topics

STORIESGOVERNANCE

GRI 102-19
Delegation of responsibility
GRI 102-20 	High-level accountability forsustainability topics
GRI 102-29 	Identifying and managing
economic, environmental,
and social impacts
GRI 102-32 	Highest governance body’srole in sustainability reporting

ENVIRONMENTAL

SOCIAL

ESG MANAGEMENT STRUCTURE
NOMINATING &GOVERNANCE
COMMITTEEBOARD OFDIRECTORS

Ultimate responsibility for ESG strategy
Annual oversight of ESG / Sustainability disclosures

ESG STEERING COMMITTEEMANAGEMENT APPROACH
L3Harris is focused on and committed to responsible and effective corporate governance in orderto enhance the creation of sustainable long-term shareholder value and to be accountable andresponsive to all our shareholders. Shareholders elect the L3Harris Board, which is comprised ofthirteen directors. All are independent except for two employee directors, our Vice Chair and Chief
Executive Officer (CEO) and our Executive Chair. The Board represents our highest governance body
responsible for ESG oversight, including climate-related risks and opportunities.
Our Board engages on a regular basis on ESG matters, including maintaining an effective governancestructure, determining appropriate board composition, planning for board succession, andoverseeing our ethics and compliance program, as well as our activities related to environmental
sustainability; diversity, equity and inclusion (DE&I); and corporate citizenship. The Board andrelevant committees monitor our progress against our ESG and climate-related targets and goals,
and oversee related aspects of our corporate strategy, plans of action, management policies, andperformance objectives.
See our 2022 Proxy Statement page 22 for details on our current Board leadership structure,including our Executive Chair, Vice Chair and CEO and Lead Independent Director roles, and page 25
for details on our Board Committees and Nominating and Governance Committee, featuring diversity
criteria included in Board nominations and selection.

Our CEO and Chair are regularly briefed by
the Vice President (VP) of Global Operations
on ESG-related issues and are responsible forproviding direction on the implementation of
our ESG strategy throughout the company. The
ESG Steering committee updates our Board
on a regular basis on ESG-related risks andopportunities. As seen in the ESG Management
Structure to the right, we also have committees
and groups across the organization to ensure
effective management of, and drive performanceacross our material ESG topics.
GRI 102-24 	Nominating and selecting the
GRI 102-25

highest governance body
Conflict of interest

Our Board is responsible for approving nominees
to stand for director elections. The Board

Accountable for ESG goals

KEY EXECUTIVES INCLUDING:
CEO:
Provides Board of Directors updates on
ESG-related risks and opportunities
CHIEF FINANCIAL OFFICERCHIEF HUMAN RESOURCES OFFICER
GENERAL COUNSELVP, GLOBAL OPERATIONS:
Briefs CEO

ESG WORKING GROUPManagement and executive-level members
representing various departments
Harmonizes ESG programs
Operational responsibility for implementationand tracking of board decisions and day-to-day
management of enterprise-wide ESG issues

L3HARRIS SUSTAINABILITY REPORT 2021

17

APPROACH

Nominating and Governance Committee assists by identifying and recommending qualified individuals
for election and re-election to the Board based on professional experience and personal criteria inthe L3Harris Corporate Governance Guidelines. Shareholders also may recommend or make director
nominations following the processes described in the 2022 Proxy Statement on page 16.
Our Board assesses the independence of our directors and examines the nature and extent of any
relationships between the company and our directors, their families, and their affiliates. The Board isguided in this assessment by our Director Independence Standards and our Corporate Governance
Guidelines, available on the Corporate Governance section of our ESG webpage.
We value the diversity of viewpoints, background, experience and personal characteristics, including
age, gender and racial and ethnic minority status, and similar demographics in our leadership,including the Board (2022 Proxy Statement on page 3). To learn more about our DE&I strategies,
policies and accomplishments see our most recent Diversity, Equity and Inclusion Report, the DE&I
story on page 13, and the DE&I disclosure on page 37.
GRI 102-30

Effectiveness of risk management processes

L3Harris’ enterprise risk management (ERM) process, which is guided by the Committee ofSponsoring Organizations (COSO) framework, identifies and assesses our top material enterpriserisks, which includes climate-related and other ESG risks. The process is Board-approved and isoverseen by the CEO and Senior Executives. Additionally, the Audit Committee performs an annual
review of the risk identification process to assist in the identification of additional risks. The ERM
Committee is chaired by the Chief Ethics & Compliance Officer and includes senior corporate leadersalong with representation from each segment. Top material risks along with existing mitigation plans
are reviewed annually by the CEO, Senior Executives and the Board.

STORIESGOVERNANCEENVIRONMENTAL

SOCIALWe improved our ERM process in 2021 through:

Increased leader input and consultation on risk identification to address emerging issues;Realigned survey timing to allow results to be considered during the enterprise strategic planning
process;

Expanded our assessment criteria to provide greater insight into risk considerations; andAssigning “risk champions” at the segment leadership level to respond to the level of risk
identified in the ERM process.

In late spring 2021, we established the Business Resilience Council. It includes L3Harris functionaland segment leaders serving as delegates and is an active partner in the ERM process. The BusinessResilience Council reports to the Business Resilience Management Team (BRM)/L3Harris seniorleadership and is chartered to oversee the Business Resilience Policy. The Business Resilience Policy
drives governance and assists segments in the design, implementation, and continuous improvementof business continuity processes and procedures, as well as promotes synergy across the organization.
The policy outlines the requirements for Business Continuity Plans (BCPs) that will be developed
for all sites to follow mission-critical business processes, including the development of threat andvulnerability assessments and Business Impact Analyses (BIAs). The Business Resilience Council
also ranked all active L3Harris sites by criticality in 2021. Segment and function business continuity
leads will be conducting BIAs for identified critical sites in early 2022. Additionally, BCPs and planned
exercises for identified critical sites will be conducted later in the year.

L3HARRIS SUSTAINABILITY REPORT 2021

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APPROACH

GRI 102-33

Board communication (Communicating Critical Concerns)

Shareholders and other persons who wish to communicate with members of our Board may send an
email to the intended recipient(s) c/o our Corporate Secretary at corporate.secretary@l3harris.com,
or may write to the intended recipient(s) c/o Corporate Secretary, L3Harris Technologies, Inc.,
1025 West NASA Boulevard, Melbourne, Florida 32919.
GRI 102-35
GRI 102-36
GRI 102-37

Remuneration policies
Process for determining remuneration
Stakeholders’ involvement in remuneration

For information on our remuneration policies for Board members and senior executives, see our2022 Proxy Statement page 42.
GRI 102-38
GRI 102-39

Annual total compensation ratio
Percentage increase in annual total compensation ratio

For more information on our CEO pay ratio, see our 2022 Proxy Statement page 90.

BUSINESS ETHICS
GRI 102-16
GRI 102-17

Values, principles, standards, and norms of behavior
Mechanisms for advice and concerns about ethics

SASB RT-AE-510a.3

STORIESGOVERNANCEENVIRONMENTAL

SOCIAL

Business ethics

L3Harris ensures an ethical workplace by going beyond policies and procedures, to embody
ethical principles and norms that permeate within and outside the company. Our business ethics
atmosphere begins at the top with the Board and executive leadership, and includes all employees,
suppliers, and customers. L3Harris is an active member of the Defense Industry Initiative (DII),
whose mission is the continued promotion and advancement of a culture of ethical conduct in every
company that provides products and services through government contracting.

VALUES AND GOVERNANCE
L3Harris’ continued success centers on a commitment to thehighest ethical standards. Processes for implementing ethicalstandards are integrated into every level of the organization asshown in the pyramid diagram on the next page.

EMPLOYEES
To instill the highest standards of performance and behavior,
all employees sign an annual pledge that they will nevercompromise the L3Harris values to achieve business objectives.
We also require all L3Harris employees, managers, officers
and directors to abide by the company’s Code of Conduct andto complete various Ethics & Compliance training, such as
Code of Conduct, trade compliance, anti-corruption and sexual
harassment. All new hires and new managers are also required
to take live Ethics & Compliance training within 90 days of
their appointments. Ethics & Compliance related training is
administered quarterly for all employees and translated into thecore L3Harris languages including English, French Canadian,

L3HARRIS’ VALUES:INTEGRITY
Accountable, ethical, honest

EXCELLENCE
Flawless execution, customerfocused, innovative

RESPECT
Safe & sustainable, communityminded, inclusive

L3HARRIS SUSTAINABILITY REPORT 2021

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APPROACH

Italian, German, Iberian Portuguese
and Thai. We achieved a 100% on-timecompletion rate for all required 2021
Ethics & Compliance training.
In 2021, we refreshed our Code of Conduct
with emphasis on our commitment toethics, which also included specificcommitments to respect our environment
by reducing greenhouse gas (GHG)
emissions, water consumption, diverting
waste from landfills, and complying
with applicable environmental laws andregulations.

SUPPLIERS
Our supply chain partners uphold thehighest principles and standards ineconomic, human rights and environmental
guidelines and practices. Consistent with
DII’s mission, all new and existing suppliers
are screened against specific performanceand ethics criteria prior to contract award
and are required to adhere to the values andbusiness standards outlined in the L3Harris
Supplier Code of Conduct, including
compliance with laws, expectations of theirethics programs and meeting appropriate
human rights and employment practiceobligations. Suppliers must also execute the

BOARD NOMINATING & GOVERNANCE COMMITTEE
Provides oversight of the E&C program

CEO/SENIOR EXECUTIVES/CHIEF E&C OFFICER“Tone from Top”— inspires ethical behavior

STORIESGOVERNANCEENVIRONMENTAL

SOCIAL

L3Harris Provisions of Purchase, which includes a legal obligation to conduct business fairly, impartiallyand in an ethical manner. After joining the L3Harris supply chain community, supply chain partners
certify annually and represent continued compliance with standards of ethical conduct as well as
specific contractual requirements. Additionally, all suppliers are contacted each year to reinforce our
expectations that they operate in an ethical and compliant manner. These notifications were made inboth English and French Canadian. See our Supplier Code of Conduct and Supply Chain Management
sections for more information.

REPORTING
CHQ E&C OFFICE
Maintains and continuously improves E&C program

ETHICS & COMPLIANCE REVIEW BOARDS (ECRB)
Addresses and resolves allegations of misconduct
at both corporate and segment levels

Employees are encouraged to report any conduct they believe violates our Code of Conduct, policies,or the law via several avenues, including their supervisor, Ethics Advisor, Human Resources, Legal or
subject matter experts. Alternatively, employees may communicate their concerns on a confidential
or anonymous basis using our third-party-hosted Helpline website or toll-free phone number, whichis available for each jurisdiction in which we operate. In 2021, L3Harris had a total of 1,521 totalreports, averaging 3.21 reports per 100 employees as seen below:

ETHICS REPORTS
WORKING GROUPS
Augments the ECRBs to address less egregious allegations

SEGMENT E&C STAFF
Implements E&C program including investigations

Number of Reports
30

610
389
585

ETHICS ADVISORS (EAs) — DUAL HATTED EMPLOYEESAssist employees and raise concerns to leadership

36

400
714

27%

25

23%

20

19%

15

911

12

10
5

1.96

2.25

2020

Inquiries
Allegations

2021

Reporting Rate(per 100 employees)

3.21

0

2019

Anonymous Reporting Rate(per 100 employees)

24

0

2019

2020

2021

Anonymous rate
Reports (per 100 employees)
L3HARRIS SUSTAINABILITY REPORT 2021

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APPROACH

Notably, 81% of individuals, who reported ethical concerns willingly identified themselves. Thisvalue is significantly higher than the industry recognized benchmark of 44%, indicating that L3Harris
employees are less fearful of retaliation when reporting ethical concerns and feel comfortablespeaking up. All reports are investigated by trained ethics professionals, and as a result of theinvestigations, there were various corrective actions taken including 76 dismissals, 82 disciplines,
119 coaching/counseling/training sessions, and 137 other actions such as process/policy
improvements and third-party reconciliations. During 2021, a higher number of complaints werereceived due to the COVID-19 pandemic and our new centralized Conflict of Interest disclosure
process.

ETHICS SURVEY
Based on the results of the 2020 ethics survey for all employees, L3Harris worked to continuously
improve our workplace culture through various activities, including targeted focus groups,
leadership engagement, implementation of a new reporter experience process, hosting over 100
learning sessions for employees, and increasing/enhancing internal communications. These efforts
specifically helped raise awareness of expected behavior, measure employee satisfaction with thereporting process, detect retaliation, and increase employee participation in the reporting process.

CORPORATE POLICIES & PROCEDURES
All corporate policies are developed, reviewed, and implemented through a cross-functional
governance body known as the Policy Review Board (PRB). The PRB is responsible for conducting
a biannual review of all existing policies to ensure accuracy. As a result of this control, numerous
policies were reviewed and updated as needed. L3Harris then notified employees of these policychanges through the website, emails, posters and training.

STORIESGOVERNANCEENVIRONMENTAL

SOCIALANTI-CORRUPTIONMANAGEMENT APPROACH
L3Harris is committed to conducting business in an ethical and transparent manner, including
complying with anti-corruption laws in countries where we operate, such as the U.S. Foreign Corrupt
Practices Act, the UK Bribery Act and the Canadian Corruption of Foreign Public Officials Act.
Our Anti-Corruption Program has oversight from the Board’s Nominating and Governance Committee,
is regularly reviewed to promote continual improvement, and is implemented and monitored forcompliance by trained professionals throughout all business segments. Our Global Anti-Corruption
Policies describe the key components of our program, which include our Business Courtesies Policythat prohibits giving or receiving business courtesies, sponsorships and charitable contributions as ameans to improperly influence business decisions.
We conduct risk-based due diligence on third-party business partners for potential corruption risk
under our Anti-Corruption Third Party Policy. Any third parties that are identified as potentially higher
risk undergo extensive enhanced vetting processes prior to engagement and are periodically reviewed
throughout the course of the relationship. L3Harris also conducts an annual enterprise-wide anticorruption compliance assessment to identify risks and control gaps.
All L3Harris employees are trained annually on the L3Harris Anti-Corruption Program and Policies. Ourinternational sales intermediaries (“Business Partners”) receive additional targeted training in anticorruption compliance due to their higher risk of incidents of corruption.

L3HARRIS SUSTAINABILITY REPORT 2021

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APPROACH

GRI 205-1
GRI 205-2

Operations assessed for risks related to corruption
Communications and training about anti-corruption policies and procedures

Business segments assessed for corruption risks
Employees that received policies & procedures
Business Partners1 that received policies & procedures
Employees trained2
Business Partners1 trained

NUMBERPERCENTAGE

4

100%

47,000

100%

192

100%

47,000

100%

192

100%

	Includes new and renewed Business Partners with agreements executed in 2021. All Business Partners are re-trained
and notified of policies and procedures every three years or upon changes.
2	Anti-Corruption training is provided to all employees on a rotational schedule, with targeted role-based anti-corruption
training provided in intervening years.
1

STORIESGOVERNANCEENVIRONMENTAL

SOCIALneeds across space, air, land, sea and cyber domains. All political activities follow our policy toconduct business ethically, transparently and in compliance with the laws in all countries where we
operate. Political lobbying and contributions by or on behalf of L3Harris are managed by the L3Harris
Government Relations team, led by the VP of Government Relations, who reports directly to theChief Executive Officer. The company’s CEO and Senior Executives also receive frequent briefings onlobbying efforts, as warranted by legislation or other lobbying updates.
GRI 415-1

Political contributions

Following all federal laws, we have established an employee political action committee (PAC). It
is governed by the L3Harris PAC Board, whose members are appointed by the CEO and include
executives representing each business segment. The L3Harris PAC is funded entirely from thevoluntary personal contributions it receives from eligible employees. All L3Harris PAC contributions
are made on a nonpartisan basis based on a candidate’s positions on issues in support of L3Harris,
its employees and its shareholders.
In accordance with federal and state laws governing political contributions, all PAC contributions are
fully disclosed in reports filed with the Federal Election Commission (FEC) and, where applicable,
state reporting portals. A listing of L3Harris PAC contributions made in 2019–2020 is available here.
L3Harris PAC contributions made in 2021–2022 will be available in the 2022 Sustainability Report.

LOBBYING AND POLITICAL ADVOCACYMANAGEMENT APPROACH
L3Harris is an active participant in the political and public policy process in the U.S., focusing on
educating policy makers about our core values and solutions to meet our customer’s mission-critical

L3HARRIS SUSTAINABILITY REPORT 2021

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APPROACHAPPROACH

ENVIRONMENTALGRI/SASBDISCLOSURESThe L3Harris-supported Elm Branchsolar project will eliminate about
110,000 metric tons of CO2 per year.

STORIESSTORIESGOVERNANCE
GOVERNANCEENVIRONMENTAL
ENVIRONMENTAL

SOCIAL
SOCIALAPPROACHENVIRONMENTAL, HEALTH AND SAFETY AND SUSTAINABILITYMANAGEMENT SYSTEM
Our commitment to environmental sustainability includes measurable
objectives and target dates for their achievement.
MANAGEMENT APPROACH
L3Harris is committed to the protection of health and safety of its employees, its customers, and theenvironment in the global communities in which it operates. By leveraging science and technology,
we continually improve the company practices to drive excellence for environmental, health andsafety and environmental sustainability (EHS&S). L3Harris employees actively participate in L3Harris
EHS and environmental sustainability programs as the company drives toward a sustainable culture
focused on caring for each other and the environment.
Our current environmental sustainability program 2026 goals include:

30%
reduction of GHG emissions over baseline year 201920%
reduction of water use over a baseline year of 201975%
solid waste diversion rate from landfill

STORIESGOVERNANCEENVIRONMENTAL

SOCIAL

Our EHS&S Management System follows recognized external management system standards (ISO
14001, ISO 45001 and ANSI Z10). These systems establish policies and procedures, provide risk
assessment tools, and lead enterprise initiatives to reduce operational EHS&S impacts. We are ISO
14001 certified at seven of our global sites including:

3 United Kingdom (UK) sites (Crawley; Farnborough; Tewkesbury)

3 U.S. sites (Rochester, NY; Fort Wayne, IN; Clifton, NJ)



1 Canadian site (Quebec)

In accordance with our Environmental Compliance Policy, all L3Harris operations must comply,
at minimum, with applicable national or federal, state and local laws, regulations, directives andcorporate policies and procedures. All major L3Harris locations conduct a detailed annual risk
assessment to review legal and other requirements, changes to regulations, process changes andenvironmental risks, which are ranked, prioritized with corresponding action plans and managed aspart of each location’s objectives and targets. This assessment checks for the site’s compliance, butalso against the broader EHS&S Management System to measure maturity of the overall program.
Internal audits allow L3Harris to better understand site-specific risks and opportunities, improve
productivity, avoid fines, and save costs. In 2021, L3Harris enhanced its internal audit processes
and identified critical sites to audit in 2022. Criteria for site selection included information related tooverall site risk, injuries, Action Tracking System (ATS) item closure and completion of complianceself-assessment. Corporate EHS and a diverse set of L3Harris subject matter experts will conduct
the audits over a series of 90 days, starting with the completion of the location’s self-assessment
leading up to the audit week and including an opening and closing meeting. Following the audit,
Corporate EHS&S will meet with the location’s team members to review audit findings and upload
the results in our EHS&S Management Software.
In accordance with our Environmental Sustainability Policy, L3Harris locations must monitor andtrack consumption of natural resources, develop and implement strategies to minimize and optimize
their use and report all relevant environmental sustainability data to Corporate EHS&S. Our robust
EHS&S Management Software enables employees to report EHS&S concerns, track incidents,
L3HARRIS SUSTAINABILITY REPORT 2021

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APPROACH

compliance and analyze environmental sustainability data such as energy use, GHG emissions,water use and solid waste generation from company locations.
GRI 307-1

Non-compliance with environmental laws and regulations

All regulatory events, onsite visits, inspections, interactions and other potential risks for noncompliance are logged and tracked in our incidents and measures (I&Ms) module, where a root
cause analysis can be completed depending on the level of the issue. If fines are issued, they aretracked in I&Ms. Any actions associated with the entries are then entered into our ATS, which isinterlinked with the I&Ms module. Our refined internal audit process requires follow up on theserisks in detail.

L3Harrishas not had any major non-compliance issues with environmental laws andregulations or paid any related fines >$10,000 during 2020­–2021.

SUSTAINABLE PRODUCTS/SERVICES AND PACKAGINGMANAGEMENT APPROACH(MATERIALS, PRODUCTS & PACKAGING)
We monitor the materials we use in our diverse products via processes and toolsets across all businesssegments and geographies where we operate, including the use of recycled materials and any products
we reclaim as an organization, whether the product is at the end of useful life or for other reasons. We
also actively look for ways to reuse or recycle materials, to prevent the generation of waste and avoid
the use of hazardous materials in our products. We are committed to compliance with all rules andregulations related to our existing and future electronics and other products sold worldwide.

STORIESGOVERNANCE

MANAGEMENT APPROACH(SUSTAINABLE PRODUCTS & SERVICES)
Several of our products and technologies canbe used by our customers to improve thesustainability of their own operations andmanage climate-related and other environmental
challenges. Some examples of our producttechnology being used to advance climate science
include:

Advanced Baseline Imagery (ABI) which has
revolutionized meteorologists’ ability to collectweather, climate, ocean, and environmental
data.



Thermal and Near Infrared Sensor for Carbon
Observation-Fourier Transform Spectrometer-2(TANSO-FTS-2), which measures natural versus
man-made emissions.

ENVIRONMENTAL

SOCIALIn support of its commitment to sound
ESG practices, L3Harris will end workon a program related to the testing ofcluster munitions. L3Harris will wind
down the Wind Corrected Munitions
Dispenser Telemetry kit program andhas executed an agreement to transition
the contract to a small business. The
transition is expected to be completed
no later than fiscal year-end 2022. As aresult, the Company will have exited allcluster munition-related programs.

In 2021, we developed a Program Management Gate Process and Frontload Process which both help
us monitor our products, carbon content and the full life cycle of their materials.

Read more about thesetechnologies in our Product
Technology story.

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APPROACH

ENERGY AND CLIMATE CHANGE
MANAGEMENT APPROACH
L3Harris’ business operations and production
processes depend on energy and raw materials.
Continually reducing GHG emissions is one of thethree key focus areas of our EHS&S Management
System. L3Harris continues to manage its
energy usage and GHG emissions through a GHG
Reporting Procedure that applies to all company
locations worldwide. It describes the management
process governing reduction activities andthe reporting progress towards our 30% GHG
emissions reduction goal. Our corporate targets
and objectives, as outlined in our environmental
sustainability program, facilitate collaboration
across EHS&S, business segments and leadership.

GRI 302-4

STORIESGOVERNANCEENVIRONMENTAL

SOCIAL

Reduction of energy consumption

UK NET-ZERO COMMITMENT
As part of the UK Climate ChangeAct, the UK made a commitment toachieve net-zero carbon emissions by
2050. To support this commitment,
L3Harris UK locations have pledged
their commitment to achieving netzero emissions by 2050 and disclosed
required Scope 1, 2, and 3 emissions
and reduction goals as part of their
Carbon Reduction Plan. This plan details
how net-zero will be achieved for ourfacilities in the UK by 2050.

L3Harris is committed to evaluating a path forward to determine if it isfeasible to achieve a net-zero carbon emission commitment enterprisewide by 2050. To assist with this evaluation, L3Harris is proceeding witha comprehensive Scope 3 GHG inventory analysis.

Our Corporate EHS and Environmental Sustainability Team partners with Facilities and Contract
Management in energy management efforts to advance our commitment to reduce energy
consumption and achieve our long-term GHG emissions reduction target. L3Harris completed arenewable energy and energy management feasibility study at the end of 2018 which resulted in
the commitment to pursue a large-scale renewable energy project. This project was finalized with
the Elm Branch Solar Farm achieving commercial operation. To expand our commitment to sourcing
renewable energy, L3Harris kicked off Phase II of this initiative in 2021 which resulted in theidentification of 26 opportunities across our locations, ranging from renegotiating retail contracts,
installing onsite renewable energy and investing in community solar opportunities. Some of theseprojects will materialize in 2022.
As L3Harris modernizes its facilities, we look for opportunities that also reduce our energy
consumption. Our Environmental Sustainability Calculators are used to evaluate environmental
impacts and understand both the positive and negative impacts real estate and infrastructure
projects have on accomplishing our environmental sustainability goals. The calculators provide astandardized methodology for estimating project impacts across the company for various types ofprojects such as lighting, roof replacements, or other equipment upgrades using standard emissions
factors and cost estimates. In 2021, we identified 73 additional energy efficiency projects withprojected annual savings of approximately 19,500,000 kWh.

L3HARRIS SUSTAINABILITY REPORT 2021

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APPROACH

GRI 302-1
SASB 130a.1
GRI 305-1
GRI 305-2
GRI 305-4

STORIESGOVERNANCEENVIRONMENTAL

SOCIAL

Energy consumption within the organization
Energy management
Direct (Scope 1) GHG emissions
Energy indirect (Scope 2) GHG emissions
GHG emissions intensity

2020 GHG

2019 GHG

2021 GHG

2019 ENERGYEMISSIONS

2020 ENERGYEMISSIONS

2021 ENERGYEMISSIONS(TERAJOULES)(MT CO2e)(TERAJOULES)(MT CO2e)(TERAJOULES)(MT CO2e)

866

—

634

—

816

—

Fuel: natural gas (Scope 1)

1,063

—

836

—

692

—

Total Fuel (Scope 1)

1,929

77,4891,470

61,4181,508

47,803

Process and Fugitive (Scope 1)

—

53

—

48

—

46

GHG Emissions — Total Scope 1—

77,542—

61,467—

47,849

Electricity 100% Grid (Scope 2)

2,477

260,680

2,373

246,9222,199

227,381

Other Direct Line Energy (Scope 2)

121

10,233

102

8,646

101

8,575

Reductions ­— RECs (Scope 2)

—

0

—

0

—

-14,113

GHG Emissions — Total Scope 2—

270,913—

255,568—

221,843

4,526

348,455

3,945

317,034

3,808

269,692—0.000019—

0.000017—

0.000015

Fuel: diesel, propane, gasoline, jet fuel(Scope 1)

TOTAL ENERGY AND GHG EMISSIONSGHG Intensity (MT CO2e/$ Total Revenue);
includes Scopes 1 and 2

CO2e (carbon dioxide [ CO2] equivalent) = all 7 gases of the GHG Protocol (CO2, methane[CH4], nitrous oxide [N2O], hydrofluorocarbons [HFCs], perfluorocarbons [PFCs], sulfur
hexafluoride [SF6], nitrogen trifluoride [NF3]) calculated as a common unit (metric tons [MT])to determine equivalent global warming impact. We develop our GHG emissions inventories
in accordance with the WRI GHG Protocol Corporate Standard and the International
Aerospace Environmental Group (IAEG) Greenhouse Gas Reporting Guidance.
We monitor GHG emissions from the wholly owned and/or operated properties over which
L3Harris has complete operational control in alignment with the criteria provided in the
IAEG GHG reporting guidance. L3Harris undergoes a change management process to
identify and correct data entry errors from past years. In 2019 and 2020, several sites
identified errors in their data entries that corresponded to a minor decrease in enterpriselevel GHG emissions for both years. Therefore, the 2019 and 2020 totals presented inthis report will not necessarily match past reports due to the corrections made during thechange management process. All actual emissions are as reported in respective years in
the past, and the figures have not been recalculated due to any 2021 divestitures at thistime. Other divestitures are still being evaluated for exclusion in the 2022 report as a partof our change management process.
Scope 1: All direct GHG emissions including stationary combustion of fuel by L3Harris
locations, mobile combustion of fuels in L3Harris operated vehicles and process and fugitive
emissions, releases from stationary air conditioning units containing HFC refrigerants, andSF6 from semiconductor and/or electrical equipment at L3Harris properties.
Scope 2: Market-based indirect GHG emissions resulting from the generation of purchased
electricity or other direct line energy purchases (e.g., steam). Both location-based andmarket-based emissions are reported in our annual CDP report.
2019 is our base year as it represents the first full year of data post-merger between
L3 Technologies and Harris Corporation.
L3HARRIS SUSTAINABILITY REPORT 2021

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APPROACH

GRI 305-5

Reduction of GHG emissions

GOAL: 30%
Reduction in Scope 1 and 2 GHG emissions by 2026 against a 2019 baseline.
Progress: 23%%

Between 2020 to 2021, we reduced our year-over-year Scope 1 and 2 emissions by 78,763 metrictons of CO2e, which totals a 23 percent decrease from our 2019 baseline due to our continued focus
on energy efficiency, an increased use of renewable electricity, and lower building occupancy due
to the COVID-19 pandemic. We took steps in 2021 to source more renewable energy and reduce
the GHG emissions associated with the electricity we purchase to power our operations. In 2021,
construction was completed for the Elm Branch Solar Farm project as a part of our long-term virtual
power purchase agreement (VPPA) for renewable energy. This will help us make progress toward our
GHG emissions reduction target in future years.

Read more about the Elm Branch Solar
project in our Climate Change story.

GRI 305-3

Other indirect (Scope 3) GHG emissions

Scope 3 emissions are a result of the activities of a company, but occur from sources not owned
or controlled by the company. Scope 3 emissions often account for a much greater portion of acompany’s emissions. L3Harris currently tracks upstream Scope 3 emissions from fuel- and energyrelated activities, employee business travel and employee commuting for the enterprise and due
to regulatory requirements, upstream and downstream transportation and distribution and waste

STORIESGOVERNANCEENVIRONMENTAL

SOCIAL

generated in operations for UK-based locations. We are committed to conducting a comprehensive
Scope 3 assessment and will be releasing more detailed information in 2023 through the
Sustainability Report and CDP Climate submission.
GHG EMISSIONS

2019 / MT CO2e2020 / MT CO2e

2021 / MT CO2e

Scope 3 Fuel- and energy-related activities(not included in Scope 1 or 2)

13,034

12,346

11,369

Scope 3 Business travel

17,174

15,52825,818

Scope 3 Employee commuting

112,437

74,20861,301

CLIMATE RISKIn addition to our GHG reduction efforts, L3Harris identifies, assesses and manages climate-relatedrisks and opportunities through numerous controls and processes embedded in our operations. In
2021, we developed a Climate and Water Risk Management Plan (CWRMP) to update and expand
upon the 2019 Climate Risk Management Plan that evaluated the potential impacts of climatechange on operations-critical resources for major L3Harris locations and operations.
The CWRMP covers a portion of L3Harris’ larger global portfolio in the U.S., Canada, England andAustralia, and brings climate and water risk considerations together to provide a more holistic risk
assessment. The CWRMP includes an analysis of climate science projected trends and potential
associated risks for climate variables such as average annual temperature and precipitation, sealevel rise, extreme weather events (i.e., extreme temperatures and precipitation, hurricanes/tropicalstorms, severe storms, wildfires), water stress and drought. This assessment used datasets oncurrent and projected climate parameters from the World Bank Climate Knowledge Portal, the U.S.
Global Change Research Program’s Fourth National Climate Assessment, Canada’s Changing Climate
Report, the UK’s Climate Projections Report and Australia’s State of the Climate Report. The CWRMP
L3HARRIS SUSTAINABILITY REPORT 2021

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APPROACH

focuses on a high emissions (or business-as-usual) scenario, but also includes discussion of climate
science under 2°Celsius or lower emission scenarios, where applicable. The scope of the CWRMP
analysis is determined based on the most critical locations to L3Harris operations, as identified
through the ERM process. The report is updated every two years, and was coupled with a separate
Supply Chain Climate Risk Assessment (SCCRA) in 2021 to assess the primary climate risks to
L3Harris’ supply chain (see Supply Chain Management).
L3Harris has identified extreme weather events and increasing average temperatures as key risks
to our assets and operations. These climate risks can cause direct damage or chronic stress to ourfacilities and infrastructure, leading to equipment failures and location closures. L3Harris has taken
measures to build adaptive capacity to mitigate these risks, including upgrading infrastructure,
improving structural integrity of facilities, ensuring appropriate backup power is available, andimplementing more renewable energy within our portfolio. For more information on our risks
associated with climate change, please see our CDP Climate Questionnaire response.
The CWRMP is made available for L3Harris personnel and facilities to support development oflocation-level emergency management and risk reduction plans. Additionally, in 2021 the CWRMP
was briefed at the Business Resilience Council and provided to the ERM to further integrate
climate-related risks into our process. As a part of business continuity planning, the CEO and Senior
Executives discuss the potential financial impact to operations as a result of climate-related risks
and other possible disruptions. L3Harris has also incorporated climate risk into the BIA template forconsideration of potential climate-related impacts relevant to individual locations and future climate
science projections.

WATER
MANAGEMENT APPROACH
While L3Harris’ dependence on and impact to water quality is not substantial, we do require
sustainable access to limited amounts of water to keep our operations running and for general use

STORIESGOVERNANCEENVIRONMENTAL

SOCIAL

at our locations. L3Harris has a diverse, well-established supply chain with suppliers located acrossthe globe, which limits our exposure to water risks in our value chain and provides a level of risk
mitigation for potential climate-related impacts.
We kicked off a more impactful water strategy initiative in 2021 to identify large-scale water
conservation and efficiency projects across our portfolio and we work with facilities to evaluate andimplement these projects. In addition, we continue to focus on including irrigation controls, low-flow
toilets/faucets, reuse of wastewater and cooling tower efficiencies, as well as new technologies andprocesses to minimize the amount of onsite water use.
Our Water Reporting Procedure governing our company-wide management of water-related issues
was updated in 2021. It defines our approach and methodology for calculating the company-widewater inventory, describes the management process governing reduction activities and outlines theprocess for reporting progress towards our 20% water use reduction goal.
GRI 303-1

Interactions with water as a shared resource

In 2021, L3Harris updated its previous Water Risk Assessment (WRA) to identify potential waterrelated impacts to our business operations on a global scale. This assessment used datasets oncurrent and projected water parameters from the World Bank Climate Knowledge Portal, the World
Resources Institute’s (WRI) Aqueduct Water Risk Atlas, and the Water Risk Filter developed by World
Wildlife Fund for Nature (WWF) in collaboration with Deutsche Entwicklungsgesellschaft (DEG). The
assessment covered critical L3Harris facilities in the U.S., Canada, England, and Australia. The WRA
was combined with the Climate Risk Management Plan to create the CWRMP in 2021, and is updated
every two years.
L3Harris has identified water availability and reliability as key risks to our assets and operations,especially those located in the western U.S. and Australia, where they are expected to experiencethe largest increase in frequency and intensity of droughts. These water risks could create healthand safety concerns for our employees, as well as disruptions in our operations. L3Harris has
L3HARRIS SUSTAINABILITY REPORT 2021

29

APPROACH

taken measures to mitigate these risks, including upgrading our facilities to use less water for daily
operations.

For more information on our risks associated with water,
please see our CDP Water Security questionnaire response.

STORIESGOVERNANCEENVIRONMENTAL

SOCIAL

identified errors in their data entries that corresponded to a minor decrease in enterprise-level water use data for both
years. Therefore, the 2019 and 2020 totals presented in this report will not necessarily match past reports due to thecorrections made during the change management process. All actual water use data is as reported in respective previous
years, and the figures have not been recalculated due to any 2021 divestitures at this time. Other divestitures are still
being evaluated for exclusion in the 2022 report as a part of our change management process.
Potable water includes municipal water, surface water, and other potable water sources.

GOAL: 20%
GRI 303-2

reduction in water use by 2026 against a 2019 baseline.
2021 Progress: 23%

Management of water discharge-related impacts

L3Harris follows water discharge requirements determined by federal, state and local regulations.
GRI 303-3
GRI 303-5

Water withdrawal
Water consumption

In 2021, we reduced our year-over-year water use by 434 Megaliters which is a 23% reduction fromthe 2019 baseline. During this time period, L3Harris implemented water efficiency projects identified
by conducting eco-treasure hunts and through our enterprise facilities and real estate improvement
process. The reduced water use is also reflective of reduced occupancy at many of our locations due
to COVID-19.
For example, our Tempe, AZ location recently completed a 6-month pilot study to soften the cooling
towers makeup water to increase the Cycles of Concentration (CoC) and reduce blowdown. Given
these changes, the location’s projected annual water savings is 10 million gallons of water or ~30%
of overall facility water consumption. ­2019
MEGALITERS

2020
MEGALITERS

2021
MEGALITERS

Potable water

1,883

1,753

1,447

Groundwater

0.35

0.51

1.92

TOTAL WATER

1,883

1,754

1,449

For more information on our water stewardship, please see
our CDP Water Security questionnaire response.

We monitor water use data from the wholly owned and/or operated properties over which L3Harris has complete
operational control in alignment with the criteria provided in the IAEG GHG reporting guidance. L3Harris undergoes achange management process to identify and correct data entry errors from past years. In 2019 and 2020, several sites
L3HARRIS SUSTAINABILITY REPORT 2021

30

APPROACHSTORIESGOVERNANCEENVIRONMENTAL

SOCIALWASTE AND HAZARDOUS WASTE

state and local regulatory requirements, and be documented in line with our Policy for large-quantity
generators (LQGs) within our EHS&S Management System.

MANAGEMENT APPROACH

GRI 306-1
GRI 306-2

L3Harris’ emphasis on solid waste management includes a comprehensive evaluation of all
operations to fully understand the processes that generate waste and identify reduction initiatives,
reuse options, and diversion from landfill opportunities. The waste and recycling streams generatedby L3Harris across all locations and operations include solid and non-hazardous, special, universal
and other hazardous (including, rarely, radioactive) wastes.

SOLID WASTE
L3Harris continues to manage its solid waste generation through a Solid Waste & Recycling
Procedure that applies to all company locations worldwide. This procedure defines our approach andmethodology for waste generation, minimization and diversion and to facilitate reporting progresson our long-term solid waste diversion rate from landfill goal of 75% by 2026. This procedure acts
as a guide for establishing location requirements to effectively implement a solid waste diversion
program, which includes outlining requirements for aligning with the Green Business Certification,
Inc. (GBCI) Total Resource Use and Efficiency (TRUE) program for zero waste certification if alocation decides to pursue greater than 90% diversion from landfill. L3Harris strives toward
continuous improvement; therefore, any location that wants to exceed our goal of achieving atleast 75% diversion rate from landfill is encouraged to do so.
We also expect our suppliers to operate in a manner that actively manages risk, minimizes waste
and protects the environment (see our Code of Conduct and Supplier Code of Conduct).

Waste generation and significant waste-related impacts
Management of significant waste-related impacts

SOLID WASTE
Each L3Harris location that produces solid waste through manufacturing processes, engineeringand design processes, office operations, cafeterias, or other operational processes is responsible fordeveloping and maintaining a Solid Waste Management Program which includes:


GENERAL WASTE HANDLING BY WASTE TYPE, including trash, compost, food waste, green
waste, metals, plastics, glass, cardboard, etc.



ONSITE WASTE MANAGEMENT INFRASTRUCTURE to enable efficient waste and recycling
collection.



ONSITE WASTE INVENTORY AND WASTE CHARACTERIZATION ASSESSMENTS to understandand evaluate the processes by which solid waste is generated and disposed of onsite, and identify
potential upstream/downstream impacts and reduction and diversion strategies.



PROCEDURES FOR IDENTIFYING AND MANAGING WASTE VENDORS to optimize waste
reduction and recycling efforts and to reduce costs.

Solid waste generation is tracked in the EHS&S Management Software.

HAZARDOUS WASTE
Hazardous and radioactive waste is managed specifically through our Environmental Compliance
Policy. L3Harris requires hazardous waste to be tracked from “cradle to grave”, meeting all federal,

L3HARRIS SUSTAINABILITY REPORT 2021

31

APPROACHSTORIES

Initiating progressive supply chain-oriented practices.

Such practices avoid waste generation prior to point of disposal. By implementing these changes
onsite in processes, materials, equipment and behavior that surpass traditional approaches to solid
waste minimization, we are optimistic that we will achieve our enterprise goal of 75% solid waste
diversion rate at an enterprise level.
L3Harris is continually working to identify opportunities across our locations for circularity measuresthat retain the value of products, materials and resources, and redirect them back to use. Our Tempe,
AZ location utilizes programs that take various materials typically difficult to recycle, such as chemicals
and personal protective equipment (PPE), and sends them to specialized recycling facilities. These
programs help to divert waste from landfills and minimizes overall waste generated by L3Harris.

d

Reusing/donating materials and products, and

re



fe r

Conserving commodities through upstream waste prevention,re

TREATMENT& DISPOSAL

pst

Purchasing more durable goods,

ENERGY RECOVERY

a
Le



d

Changing manufacturing processes,

RECYCLING/COMPOSTING

re



fe r

Redesigning products to maximize material usage,

re



p
st

L3Harris has committed to a 75% solid waste diversion rate from landfill by 2026, and has acommon operating philosophy of continuous improvement and operational excellence. L3Harris’
approach to managing solid waste generation is realized by optimizing resources, rather thanmanaging discards. Priority is given to source reduction, reuse, recycling, composting and energy
recovery before landfill disposal. This approach encourages the elimination of solid waste before it iscreated and is achieved by:

SOCIAL

SOURCE REDUCTION & REUSE

Mo

solid waste diversion rate from landfill by 2026.
2021 Progress: 48%

ENVIRONMENTAL

WASTE MANAGEMENT HIERARCHYSOLID WASTE DIVERSION GOAL AND CONTINUOUS IMPROVEMENT PRINCIPLESGOAL: 75%

GOVERNANCE

HAZARDOUS WASTE
Our facilities and operations are subject to numerous domestic and international waste laws andregulations designed to protect the environment. In 2021, L3Harris focused on improving theauditing process at LQG facilities, including audits of the Treatment, Storage and Disposal Facilities(TSDFs) that manage our waste. The internal audit process will encompass most of L3Harrs’ sites
including all 11 LQGs. We also performed ongoing compliance audits of 10 TSDFs with which we
contract. A risk matrix was built into our procedures for assessing compliance requirements against
location waste generation. To further improve the process, we plan to also assess small quantity
generators in 2022.

L3HARRIS SUSTAINABILITY REPORT 2021

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APPROACHSTORIESGOVERNANCEENVIRONMENTAL

SOCIALWASTE GENERATION AND DISPOSALGRI 306-3
Waste generated
GRI 306-4
Waste diverted from disposal
GRI 306-5
Waste directed to disposal(SASB) RT-AE-150a.1 Amount of hazardous waste generated, percentage recycled

2020 (tons)

2021 (tons)48%

of all waste generated was diverted
from landfill in 2021

L3Harris follows the Resource Conservation and Recovery Act (RCRA) regulatory framework forthe proper management of hazardous and non-hazardous solid waste at our U.S. locations. The
RCRA framework includes regulations, guidance and policies to facilitate the safe managementof hazardous and non-hazardous waste materials, while also encouraging source reduction andbeneficial reuse. The framework is also integrated into our audit processes at our LQGs and TSDFs
with which we contract. We compile our waste generation data using the procedures and methods
as described in the Management Approach and GRI disclosures 306-1 and 306-2.
2019 (TONS)

2020 (TONS)

2021 (TONS)

Landfill

11,60010,8008,500

Diverted from landfill

7,000

7,200

7,900

7,200

10,800

7,900

8,500

Landﬁll
Diverted from landﬁll
We monitor solid waste data from the wholly owned and/or operated properties over which L3Harris hascomplete operational control in alignment with the criteria provided in the IAEG GHG reporting guidance. L3Harris
undergoes a change management process to identify and correct data entry errors from past years. In 2019 and2020, several sites identified errors in their data entries that corresponded to minor changes for both years.
Therefore, the 2019 and 2020 totals presented in this report will not necessarily match past reports due to thecorrections made during the change management process. All actual solid waste data is as reported in respective
previous years, and the figures have not been recalculated due to any 2021 divestitures at this time. Other
divestitures are still being evaluated for exclusion in the 2022 report as a part of our change management process.

2020 RECOVERY/DISPOSAL OPERATIONSHAZARDOUS

Total Hazardous Waste Generated (TONS)

691

Landfill

62%

Recycling/Recovery

7%

Incineration

27%

Other

5%

L3HARRIS SUSTAINABILITY REPORT 2021

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APPROACHAPPROACH

SOCIALGRI/SASBDISCLOSURESSTORIESSTORIESGOVERNANCE
GOVERNANCEENVIRONMENTAL
ENVIRONMENTAL

SOCIAL
SOCIALAPPROACHSTORIESGOVERNANCEENVIRONMENTAL

SOCIALNew college graduates (%)
36
42

FemaleHUMAN CAPITALGRI 401-1

MANAGEMENT APPROACH

2021 HIRING

Our employees are the key to our business success. Therefore, we offer a stimulating work
environment with opportunities for growth, while delivering mission-critical solutions. Fostering
inclusion and rewarding talent are central to our recruitment and development strategy. To measure
our progress for creating an engaging and innovative workplace, we track our retention, hiring andperformance, and evaluate our metrics and goals annually.

New college graduates (%)

OUR PERFORMANCE GOALS & 2021 RESULTS INCLUDE:

RETENTION
Maintain a voluntary attrition rate lower than industry average.
2021 Results: rate of 9%, lower than industry average

New hires and turnoverFemaleMale

25
75
Employee turnover, by gender (%)
9.6
9.1

FemalePOC
75

25
New hires, by gender (%); Total hires: 8,087
75
25
75

Female75
25
New hires, by gender (%); Total hires: 8,087
75
25
75

202125TURNOVER

36
42

Female

POC

25

Male
75

Male

25
25
75
Employee turnover, by gender (%)
9.6 401-2 	Benefits provided to full-time employees
GRI
9.1

HIRING
Maintain strong focus on university hiring. New college graduate hiring > 10% of annual hiring.
2021 Results: 840 new-graduate hires, meeting goal of >10% of annual hiring
Achieve an intern conversion rate of at least 65%.
2021 Results: 88%

TALENT
Helping our employees develop and improve skills through mentoring programs and career
growth opportunities.
2021 Results: average 22 annual training hours per employee

FemaleMale

25 L3Harris employees
75 receive world-class benefits that support their health, finances
Full-timeand families.

L3HARRIS’ BENEFITS:
HEALTH BENEFITS: In the U.S., L3Harris provides comprehensive benefit coverage including
medical, dental and vision insurance, as well as a host of voluntary offerings. Internationally,
we offer access to various medical, dental and vision programs in lieu of, or in coordination with,country-sponsored plans.
RETIREMENT BENEFITS: To assist employees in building wealth for their retirement, L3Harris
provides access to various statutory and non-statutory retirement programs, such as 401(k) andsupplemental savings plans with employer match in the U.S., as well as stakeholder savings plans
with company contributions in the UK.
L3HARRIS SUSTAINABILITY REPORT 2021

35

APPROACH

WORK/LIFE BALANCE: L3Harris offers various programs and benefits that address employee
assistance and counseling, parental support, and in some countries, back-up childcare andeldercare. This includes a parental leave policy to allow employees to focus on their families at key
moments in life. Additionally, our total rewards offerings include many resources to integrate an
employee’s work and life, from managing their day-to-day duties to unexpected events.
MENTAL HEALTH & WELL-BEING: L3Harris’ Employee Assistance Program (EAP) is available toall employees and their family members at no cost. It offers confidential counseling and otherservices to help employees and their families cope with and address a variety of everyday andextraordinary stressors/challenges. Providing a comprehensive suite of solutions for our employees
helps equip them with the support they need to bring their best self to work every day. Our U.S.
exempt employees receive discretionary paid time off (PTO), which provides them freedom to taketime off as needed without the boundaries of a traditional, accrual-based PTO plan. Additionally, ourDress for Your Day policy is a benefit that allows employees more discretion in selecting appropriate
clothing for the business of each workday.
GRI 404-1

Average hours of employee training

Our employees can develop and improve their skills through our mentoring program and several
career growth opportunities. These offerings are central to supporting engaged employees who
contribute to the success of our organizational goals. We provide ongoing training and careerdevelopment focused on compliance with our Code of Conduct, ethics and laws applicable to ourbusinesses; skills and competencies directly related to employees’ positions; and responsibility for
personal safety and the safety of fellow employees, others and the environment.

22
Employees average 22 hours of annual training.

GRI 404-2

STORIESGOVERNANCEENVIRONMENTAL

SOCIAL

Programs for upgrading employee skills and transition assistance programs

EARLY CAREER DEVELOPMENT
We offer rotational assignments to our earlycareer professionals so they can build a broad
knowledge base and accelerate leadership
growth in Engineering, Finance and Information
Technology. These rotations span different
segments, disciplines and geographies, allowing
diverse experiences through mentorship, training
and networking.

PROFESSIONAL AND TECHNICALDEVELOPMENTOUR EMPLOYEES HAVE SEVERALOPPORTUNITIES TO ENHANCE THEIRSKILLS INCLUDING:TRAINING, rotation, and careerdevelopment opportunities.



TUITION ASSISTANCE. In 2021,>1,900 employees received
assistance.



OUTPLACEMENT SERVICES
provided to displaced employees.

L3Harris’ Frontline Leadership training program
equips leaders to maximize team performanceby improving communication, coaching anddelegation skills. This training has been especiallyhelpful in the changing working environment
during the pandemic.
We also recognize that continuous learning is essential for employee technical growth. Therefore,
L3Harris provides employees financial assistance to obtain additional education through notfor-profit, regionally accredited college or university degree programs and credit-bearing
certificate programs. In addition, we have developed functional excellence academies in Business
Development, Program Management and Supply Chain to develop functional expertise and drive
best-in-class performance. These programs are taught by L3Harris technical experts in interactive
sessions that allow for technical development, networking and cross-segment collaboration.

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APPROACH

LEADERSHIP & EXECUTIVE DEVELOPMENT
L3Harris has partnered with The Wharton School of the University of Pennsylvania to design andprovide two distinct offerings for executives and high-potential leaders. Our Executive Program (EP)is a five-day program conducted twice annually for experienced and newly promoted executives, aswell as high-potential leaders from our Emerging Leaders Program (ELP).

MENTORING
The relationship between a mentor (trusted guide) and mentee (learner) provides a mechanism tounlock knowledge and experience that is beneficial for both. Our Mentoring Resource Kit is a selfdirected site for employees consisting of information, resources and tools that support a formal orinformal mentoring relationship and learning experience. We also offer iMentor, an online tool thatallows employees to pursue personal growth through mentorships. To get a mentor or become amentor, employees simply select the skill or skills they are interested in and complete the short form
to get paired with someone.

ENGINEERS WEEK

Percentage of employees receiving regular performance reviews

We continue to ensure that 100% of eligible employees receive annual performance reviews andguidance on career development opportunities.

GOVERNANCEENVIRONMENTAL

SOCIAL

DIVERSITY, EQUITY AND INCLUSIONMANAGEMENT APPROACH
We value a diverse employee base that contributes multiple points of view across race, ethnicity,
gender, sexual orientation, age, ability and education. We actively embed our commitments to
DE&I into our workforce, governance bodies and overall culture activities. Some of our key
initiatives include:

BOARD COMPOSITION: Integrating DE&I criteria into the Board nominating and selection
process.



DIVERSITY COUNCIL SUPPORT: Co-chaired by our CEO and Vice President of Talent & Inclusionand comprised of Employee Resource Group (ERG) leaders and executives from across theenterprise, the Council is in its second full year of operations. It influences and drives company
strategies designed to advance DE&I, engagement and leadership to build a high-performance,
diverse workforce.

PROMOTING AND GROWING OUR ERGS: These high-energy groups are a great way to networkand meet new people, support our communities and foster professional development. Moreinformation on our ERGs can be found on pages 17-26 of our 2021 Diversity, Equity and Inclusion
Annual Report.



COMMITMENTS FOLLOW-THROUGH. Our new Vice Chair and CEO recommitted to the CEO
Action for Diversity and Inclusion and the Catalyst CEO Champions for Change in 2021,
emphasizing our company’s commitment to advance diversity, build inclusion, empower
employees, mitigate bias, advance understanding, and drive accountability.

Out of our approximately 47,000 employees, we have about 19,000 engineers and scientists. To
celebrate their accomplishments and inspire early career professionals, we annually celebrate
National Engineers Week (EWeek) company wide.
GRI 404-3

STORIESOur ERG footprint continues to grow with more than 70 local chapters established andapproximately 7,800 members worldwide.

L3HARRIS SUSTAINABILITY REPORT 2021

37

APPROACH“

We want to create sustainable, long-term value for all our customers
and employees, which requires a workforce with a broad range ofabilities, skills and experiences. Embracing diversity, equity andinclusion at every level is important to us because we want longterm success for our employees and L3Harris.

”

GRI 405-1

STORIESGOVERNANCEENVIRONMENTAL

SOCIAL

Diversity of governance bodies and employees

DIVERSITY METRICS1— Jim Girard, Vice President and Chief Human Resources Officer, L3Harris

2021%

METRIC
Generation of workforce

Our efforts to create a welcoming, engaging and inclusive workplace have been externally recognized.

Baby Boomers

26

Gen X

35

Millennial

34

Gen Z

5

Female15

People Of Color

23

Traditionalists

15

Baby Boomers

85

Female34

People Of Color

18

Female25

People Of Color

26

Board of Directors
Diversity

Generation

Executives

Total Workforce

1

For further information on employee diversity, please refer to our 2021 Diversity, Equity and Inclusion Annual Report on page 32.
L3HARRIS SUSTAINABILITY REPORT 2021

38

APPROACHSTORIESGOVERNANCEENVIRONMENTAL

SOCIALHEALTH AND SAFETY

IN ACCORDANCE WITH OUR EHS&S POLICY PROCEDURES, EACH LOCATION DEVELOPS AN
EHS&S PROGRAM THAT INCLUDES, AT A MINIMUM, THE FOLLOWING ELEMENTS:

MANAGEMENT APPROACH



Processes for worksite analysis, hazard recognition, evaluation and correction or control;

Protecting the health and safety of our employees, our customers, and the communities in which we
operate is vital to L3Harris. Everyone is responsible for health and safety excellence and improving
our practices through best-practice science and technology. We employ a learning philosophy
focused on risk reduction to improve the efficiency of our operations and processes.



A process for establishing and communicating responsibilities;

Safe working and procedures to recognize, control and anticipate location-specific hazards, alongwith a process for implementing each standard;Processes to ensure that workers have the competence to safely undertake assigned tasks
through appropriate supervision, instruction and training. The training program is focused oncompliance and risk;

Procedures to identify and report imminent danger to life, health conditions or practices including“stop work” authority;Indicators to measure performance, with targets that drive continuous improvement;Emergency Action Plans and Emergency Response Plans, as applicable;

A return-to-work process with clear criteria for bringing injured workers back to work; andAn effective management of change process.

“ACCEPT ONLY ZERO” starts with each employee. With ourentire workforce focused on reporting EHS&S concerns, we canmake progress towards our goal of a zero-injury workplace.

Occupational health and safety management system
GRI 403-1
GRI 403-2
Hazard identification, risk assessment, and incident investigation
GRI 403-3
Occupational health services
GRI 403-4 	Worker participation, consultation, and communication on occupational
GRI 403-5

health and safety
Worker training on occupational health and safety

L3Harris has implemented a robust EHS&S Management System to establish policies andprocedures, risk assessment tools, and enterprise initiatives that help reduce or eliminate exposure
to daily hazards and promote our “Accept Only Zero” mindset. In 2021 we designed a new program,“My Safety Starts with Me”, which will be rolled out in 2022. This management system follows
the guidelines and principles outlined in recognized external management system standards (ISO
14001, ISO 45001 and ANSI Z10). EHS&S Management System policies apply to all L3Harris
employees, contractors and visitors at L3Harris owned and leased locations.

There are EHS&S committees, working groups and teams at many different levels within L3Harristhat enable employees to participate in the occupational health and safety program. For example,
the Executive EHS&S Steering Committees give strategic direction to site level committees toworking groups and teams that execute initiatives or are focused on eliminating a specific hazardor type of injury.
Risk/hazard assessments and incident investigations are managed in our EHS&S Management
Software, and the Corporate EHS&S team periodically conducts audits to verify performance andto share best practices. Employees have the ability to report hazards directly to their supervisor
or manager under our “stop work” authority program as well as through our EHS&S Management
Software. Reporting may be completed anonymously to protect against reprisals, and L3Harris
maintains an ethics and compliance advisory board that would intervene if a retaliation was suspected.
L3HARRIS SUSTAINABILITY REPORT 2021

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APPROACHSTORIESGOVERNANCEENVIRONMENTAL

SOCIALAll near-miss and incident reports are investigated to determine their cause, significance andcorrective actions. This is essential for us to continually improve and learn from any injury or illness
in the workplace.

GRI 403-7 	Prevention and mitigation of occupational health and safety impacts directly

All employees receive global EHS&S training through our learning management system. The EHS&S
training program further assesses employee training needs based on specific work-related hazards.
Examples of hazard-specific training include, but are not limited to, confined space, lockout tagout,
injury investigation, laser safety, radiation safety and fall protection. All job-related training isprovided free of charge and conducted within work hours, or employees are otherwise compensatedfor the training received.

For information on management of health and safety impacts in our supply chain, see Supply Chain
Management and our Supplier Code of Conduct.

GRI 403-6

Promotion of worker health

The health and safety of our employees is always our top priority. Throughout the COVID-19
pandemic, we have continued to follow recommendations and guidelines provided by federal
agencies, such as the U.S. Centers for Disease Control and Prevention, to keep our employees
safe. This included providing required PPE and establishing safe work practices, including social
distancing and face covering requirements.

linked by business relationships

GRI 403-9

Work related injuries

As a safe workplace is a top priority for L3Harris, our ultimate goal is to achieve zero injuries andincidents. In 2021, there were 249 injuries reported across the entire enterprise.
With the focus on building robust EHS&S programs and systems while increasing employee
awareness and engagement, between 2020 and 2021 we saw a decrease of the Total Recordable
Injury Rate (TRIR) by 4% and the Lost Day Injury Rate (LDIR) remained the same as 2020. In 2021,
the TRIR was 0.54 and the LDIR was 0.17, with 249 total injuries and 2,806 lost work days reported.
There were zero fatalities with a fatality rate of 0.0 recorded in 2021.

For information on our medical and benefits programs
and other non-occupational healthcare initiatives, see
Human Capital.

L3HARRIS SUSTAINABILITY REPORT 2021

40

APPROACH

2020

11%
11%

32%

16%

25%

2021

29%

33%

9%
30%

13%

6%
20%

11%

28%
Ergonomic
Falls
Contact sharps
Struck by
Other

26%

2020

SOCIAL

L3Harris continues to conduct business in a way that protects our society and human rights throughout
our value chain. We have developed and implemented policies and compliance plans to support thiscommitment including the L3Harris Code of Conduct (pg. 35) and our Human Trafficking Policy.

IN SUPPORT OF HUMAN RIGHTS

We do not engage in human trafficking within our operations and do not willingly or knowingly
assist in any human trafficking committed by any other party, including suppliers or business
partners. Our employees and suppliers are annually reminded of our commitment to humanrights and our expectations via our Code of Conduct training and annual supplier letter. Moreinformation can be found in our Human Trafficking Policy and our Supplier Code of Conduct.



L3Harris is committed to sourcing components and materials from companies that share ourvalues of respect for human rights, integrity and environmental responsibility. We annually
disclose our due diligence efforts in accordance with SEC regulations in our Conflict Minerals
Disclosure and Report. The most recent Conflict Minerals Disclosure and Report is due May 2022
and will become available at that time.

As a Tier 3 member of the U.S. Customs Trade Partnership Against Terrorism (CTPAT) program,
L3Harris has established a multi-layered security program and corporate policy applicable to all
operations worldwide. The policy protects our organization and supply chain from any illegal orillicit activities, including human trafficking, and assists in the worldwide campaign to eliminate
these activities.

2021

TRIR

0.56 [-34% Δ]

Total 258

0.54 [-4%Δ]

Total 249

LDIR

0.17 [-43% Δ]

Total 80

0.17 [0%Δ]

Total 790%Total 00%Total 0

Fatality Rate

ENVIRONMENTAL

MANAGEMENT APPROACH

WORK RELATED INJURY RATESTYPE OF INJURY

GOVERNANCE

HUMAN RIGHTS

WORK-RELATED INJURY TYPES
2019

STORIESAll employees, suppliers, customers and other stakeholders have access to the L3Harris Helpline,
where any violations or concerns related to human rights or human trafficking can be reported
anonymously.

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41

APPROACH

GRI 412-2

Employee training on human rights policies or procedures

All L3Harris employees, regardless of position, completed L3Harris Code of Conduct training. In
2021, this included a section dedicated to awareness, identification expectations and reporting
methods for Human Rights violations such as human trafficking.

100%of employees have been trained on L3Harris’ Human Trafficking Policy.



STORIESGOVERNANCEENVIRONMENTAL

SOCIALCOMMUNITY: We support organizations that are committed to uplifting our communities andimproving lives through social contributions, such as Read Across America.

GRI 413-1 	Operations with local community engagement, impact assessment,

and development programs

GOAL: 40%of employees volunteer by 2023

COMMUNITY
MANAGEMENT APPROACH
L3Harris continues to demonstrate that community is a fundamental pillar of our culture and businessstrategy. By partnering with a wide range of non-profits and philanthropies to create internal outreachprograms, L3Harris has built a diverse portfolio of community outreach efforts. We set an annual
goal of 65,000 employee volunteer hours, which was achieved by August of 2021. This goal was
accomplished through over 1,000 different projects sponsored by the L3Harris Investing for Tomorrow(LIFT) program. The LIFT program encourages employees to engage their communities by funding
employee-led philanthropy projects that closely align with our three pillars.


SCIENCE, TECHNOLOGY, ENGINEERING AND MATH (STEM): We provide funding and volunteers
to STEM initiatives from K-12, as well as university programs to encourage STEM at an early age,while promoting access to STEM for all.



MISSION ALIGNED: We prioritize the wellbeing, development, and prosperity of active-duty
military, veterans, first responders and their families by supporting organizations including
Operation Gratitude, Army Historical Foundation, Special Operations Warrior Foundationand Homes For Our Troops.

L3Harris remains committed to its communities during the pandemic and has adopted certain
practices to ensure safety while volunteering, including a mix of virtual and in-person events.
We continued our Social Impact Grant Program in 2021 to help non-profit organizations around thecountry address populations affected by the educational, economic and healthcare impacts anddisparities exacerbated by the COVID-19 pandemic. Organizations were chosen based on DE&I
metrics, as well as geographic diversity. In 2021, L3Harris served over 217,000 individuals including
racial and ethnic minorities, individuals with disabilities, women and children, veterans and theLGBTQ+ community.
Read more about L3Harris’ community efforts and volunteering in our Community story.

Charitable giving dollars# of volunteers (% of total employees)
TOTAL VOLUNTEER HOURS(PER EMPLOYEE)

2019

2020

2021

2.6M

6.4M

5.3M

4,295 (9%)

2,615 (5%)

4,544 (10%)

55,594 (1.13)

35,538 (0.74)

105,141 (2.24)

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APPROACH

SUPPLY CHAIN MANAGEMENT
42.5%
Since 2015 L3Harris has awarded over 38% of its procurements on Department of Defense (DoD)
programs to small businesses, exceeding the DoD’s goal each year.

MANAGEMENT APPROACH
L3Harris is committed to working with our over 7,500 supply chain partners to uphold the highest
principles and standards in all economic, human rights and environmental guidelines and practices.
We are an active member of the Defense Industry Initiative, whose mission is the continued
promotion and advancement of a culture of ethical conduct in every company that provides products
and services through government contracting.
We are continually striving to deliver unmatched performance in our supply chain. We aim to selectsupply partners that innovate to create value, continuously strive to reduce total costs, consistently
deliver excellent service, meet or exceed our quality and responsiveness requirements and meet ourstandards of corporate citizenship.
As part of the supplier selection process, L3Harris conducts detailed supplier eligibility reviews
to ensure compliance with our Supplier Code of Conduct. This policy requires all suppliers toencompass best practices related to compliance with laws, human rights, employment practices,anti-corruption, conflict of interest, information protection, EHS, global trade compliance, quality
and ethical conduct. Supply chain partners are required to certify annually and represent continued
compliance with procedures of ethical conduct and specific contractual requirements. L3Harris
utilizes internal supply chain center of excellence teams to optimize supply chain performance andcompliance and to ensure suppliers are aligned with our objectives and values.
We expect our suppliers to have management systems in place to support compliance with laws,
regulations and the expectations related to or addressed expressly within the Supplier Code of
Conduct, contractual agreements, or as part of the annual certification process. L3Harris is working

STORIESGOVERNANCEENVIRONMENTAL

SOCIALto partner with analytics suppliers to automate and to further enhance our supply chain monitoringprocess, increasing supply chain visibility and improving monthly monitoring of key compliance andperformance risk areas.
L3Harris is committed to sourcing responsibly and considers mining activities that fuel armed
conflict as unacceptable. To support that effort L3harris complies with the U.S. Dodd-Frank WallStreet Reform and Consumer Protection Act, Article 1502, and reports annually to the Securities andExchange Commission (SEC) on the source of tin, tantalum, tungsten and gold (3TG) that are used in
our products.
L3Harris provides resources to suppliers, including many small businesses, to help mitigate supply
chain risks and support the development of new technologies. Throughout 2021, many small
businesses experienced staffing, resource and material constraints as a result of the COVID-19
pandemic. We supported them by accelerating payments and sharing best practices, and they
responded by delivering the products and services we required to operate. L3Harris has also
successfully collaborated with small businesses on innovation projects that include Small Business
Innovation Research (SBIR) and Small Business Technology Transfer (STTR) efforts, which allows
subcontractors to evaluate Department of Defense (DoD) SBIR topics and express an interestin partnering. Through our mentor-protege program, we also provide developmental assistancefocused on technical and business acumen. We have received three Nunn Perry Awards from the
U.S. Department of Defense (DoD) in recognition of our mentoring efforts.
As a part of our ongoing sustainability and climate resilience efforts during 2021, L3Harris completed
a Supply Chain Climate Risk Assessment (SCCRA) to identify and better understand the potential
climate change risks present throughout the supply chain. The SCCRA focused on global supply
chain operations and assessed the primary climate risks to key categories of L3Harris’ supply chain,including Freight and Logistics, Facilities and Operations, HR and Administration and IT/Telecom. The
SCCRA also informs L3Harris’ ESG efforts to publicly disclose relevant environmental and physicalclimate-related risks and opportunities.
For this Sustainability Report, we are unable to provide the GRI 204-1 and 308-2 disclosuresassociated with this supply chain management section, as this information is currently unavailable.
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We are enhancing our current enterprise supply chain management systems to ensure thisinformation is sufficiently tracked and can be disclosed in subsequent Sustainability Reports.

DATA PRIVACY AND CYBERSECURITY

STORIESGOVERNANCEENVIRONMENTAL

SOCIALThe Security Operations Center (SOC) continuously monitors activity and L3Harris teams
continuously scan applications and systems for vulnerabilities to identify risk. Action plans are
created to address risks identified during the scans and are tracked until remedied.
All L3Harris employees are required to take annual cybersecurity training and receive weekly
awareness updates, including notices regarding changes to policies and procedures. Users are
regularly tested to assess the effectiveness of the training.

MANAGEMENT APPROACH (DATA PRIVACY)
The L3Harris Privacy Team oversees data privacy and makes final determinations on all data privacy
matters, providing company-wide guidance to functional leaders and the L3Harris Global Privacy
Steering Committee. This committee includes leaders throughout L3Harris functions who work
closely with the Privacy Team to ensure compliance.
The company-wide Data Privacy Compliance Program covers all matters related to the processing
and security of personal information within L3Harris. As implemented by the Privacy Team, theData Privacy Compliance Program satisfies all the applicable regulatory standards and meets thecompany’s needs from a governance perspective. Consistent with best practices and all applicablelaws and regulations, employees and third parties may have the right to request access to theiraccounts to erase, rectify, complete or amend their information.

MANAGEMENT APPROACH (CYBERSECURITY)SASB 230a.2

Data Security

The security of our clients’ data is critically important due to the nature of our products andservices and their applications. The company-wide program is fully certified under the ISO 27001
standard — Information Security Management System, and comprised of a cybersecurity organizationof nearly 100 full-time employees, headed by our Chief Information Security Officer.

CYBERSECURITY EDUCATION FOR OUR SUPPLY CHAIN
L3Harris is a leader and active participant in the National Defense Information Sharing andAnalysis Center (ND-ISAC). ND-ISAC gives defense industry entities and suppliers the ability
to use the best security data, tools, services and best practices available in a high-trust,collaborative industry environment. Through ND-ISAC, members share intelligence on cyberand physical security, insider threats, vulnerabilities and associated threat remediation.
L3Harris is also a member of Defense Industrial Base Cybersecurity (DIB CS), facilitated by
the DoD Chief Information Officer (CIO) Office, and participates in other industry partnerships
between the public and private sectors.
L3Harris developed and implemented a Cybersecurity Maturity Model Certification (CMMC)
education program designed to prepare DoD subcontractors and suppliers for implementationof the security controls found in the National Institute of Standards and Technology (NIST)
Special Publication 800-171, Protecting Unclassified Information in Nonfederal Information
Systems and Organizations. The portal developed by L3Harris has been accessed by over
4,800 suppliers to gain information on CMMC, access to self-assessment and readiness tools
and access to L3Harris-developed training webinars.

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GRI 418-1	Substantiated complaints regarding breaches of customer privacy andlosses of customer data
SASB 230a.1 Data security

In 2021, there were no breaches of customer privacy data, nor have we received any complaints inregard to our data management and protection practices.

PRODUCT SAFETY AND QUALITYMANAGEMENT APPROACH
L3Harris remains committed to providing safe and quality end-to-end solutions to meet ourcustomers’ needs. We continue to use our Quality Management System (QMS) that is based on ISO
9001 and/or AS9100 standards which enables us to stay focused on our customers and continuously
improve our processes. In 2021, we began formalizing all corporate quality management activities
into one system that will work alongside our internal Manufacturing Execution and Engineering
Systems. Our QMS is applied enterprise wide to efficiently identify, monitor and mitigate productsafety and quality issues. This helps us to consistently meet our customer requirements andsubsequently improve customer satisfaction.

STORIESGOVERNANCEENVIRONMENTAL

SOCIALsites. Corporate is engaged if the issue reaches across several business segments. Our Counterfeit
Parts Council was established in 2020 and met monthly in 2021 to monitor processes and discuss
quality findings. L3Harris locations are responsible for following protocols and reporting noncompliance at their own facility, while the Counterfeit Parts Council is responsible for monitoring andensuring compliance at an enterprise level.
We recently developed a supplier and inter-company enterprise escape management process, which
actively manages potential product and/or process related defects across all business segments.
This program will be formalized in 2022. Quality remains everyone’s responsibility, both internally forthe company and for our suppliers with common quality standards.
In 2022, we are on a journey to overhaul and revise our Zero Defect Plan (ZDP), a system which
outlines how L3Harris will prevent any defects from occurring and/or from reaching our customers.
Each business unit and/or site will be engaged on this topic during monthly operation reviews, aswell as quarterly ZDP-specific reviews. In 2022, the Counterfeit Parts Council will also perform an
evaluation of persistent issues or gaps in the quality system.
SASB 250a.2

Number of counterfeit parts detected

The Counterfeit Parts Council has identified 0 non-compliance findings in 2021.

Growth within L3Harris’s Corporate quality team throughout 2021 has allowed us to place several
new comprehensive strategies and processes into practice. This includes our new Counterfeit Parts(CP) Risk Mitigation Policy which outlines avoidance, risk identification, mitigation, disposition,
detection and reporting of suspect and confirmed counterfeit parts and materials.
L3Harris has both a bottom-up and top-down approach to addressing incident investigations andcorrective actions for product safety and quality. Sites are responsible for reporting individual nonconformances, and are then moved up to the business segment level if the issue appears at several
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L3HARRIS TECHNOLOGIES1025 WEST NASA BOULEVARD
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This report contains forward-looking statements that are based on theviews of management regarding future events at the time of publicationof this report. These forward-looking statements, which include,
but are not limited to: our plans, strategies and objectives for future
operations; new products, services or developments; future economic
conditions; outlook; the effect of our acquisitions on our business; ourgrowth potential; and the potential of the industries and markets weserve, are subject to known and unknown risks, uncertainties and otherfactors that may cause our actual results to be materially different
from those expressed in or implied by each forward-looking statement.
These risks, uncertainties and other factors are discussed in our Form
10-K for the fiscal year ended December 31, 2021.