2024
Sustainability
ReportMission. Va l ues. Pu r pose.

ABOUT THIS REPORT

Huntington Ingalls Industries, Inc.’s (“HII”, “we”, “our”, and the "Company”) 2024 Sustainability
Report (the “Report”) details HII’s objectives and progress in the areas of environmental
responsibility, social and organizational management, and governance performance.
Data about financial performance are not included in this Report but may be found on
HII.com, under the “Investors” tab, and in HII’s public filings with the U.S. Securities andExchange Commission (SEC).
Unless otherwise specified, the quantitative and qualitative information contained in thisdocument reflects HII’s activities from January 1, 2023, to December 31, 2023, in line with HII’s
financial reporting period. HII intends to issue updated sustainability reports annually.
This Report has been prepared with reference to the Global Reporting Initiative’s (GRI) latest
standards released in October 2021. We additionally disclose in line with the Sustainability
Accounting Standards Board (SASB) and the Task Force on Climate-Related Financial
Disclosures (TCFD). As our reporting becomes more robust, we will seek to expand thedetails of our disclosures. More information on our alignments with GRI, SASB and TCFD isavailable on pg. 54.

Contents
3

Welcome14

Securing Our Business

29

Building Our Community

46

Protecting Our Resources

54

Disclosures

This Report was published online on April 15, 2024. It has been optimized for digital viewing.
In the interest of minimizing paper use, please consider reading this Report electronicallyrather than printing a hard copy.
For questions about this Report, please contact sustainability@hii-co.com.

2024 Sustainability Report2

Welcome

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Back to contents Message from our President and CEO
OUR VALUES IN ACTION

At HII, we work continuously to meetthe evolving needs of our customers
and stakeholders.
This ability to adapt while staying true
to our mission and values has been
central to our creation of long-term
shareholder value, and will be critical to ourcontinued success in the years to come.
Our Sustainability Strategy at HII is ourcommitment to hold ourselves accountablefor our impact, and to take concerted steps
to ensure our values are upheld in all we do.
Our Sustainability focus areas, therefore,
are both aligned with our stakeholders’interests and measurably advance them.
Living up to HII’s values of respect andperformance while fulfilling our mission, forexample, requires attracting and retaining
a world-class workforce and cultivating
an inclusive environment where different

backgrounds, experiences, ideas andperspectives are recognized and valued.
Engaging the best and brightest people
who bring passion and excitement forsolving complex problems is a competitive
advantage that leads to better businessoutcomes. That is why we’ve elevatedDiversity & Inclusion (D&I) as an enterprise
priority, and hold ourselves accountableto achieving D&I goals as part of ourSustainability Strategy.

Over time, HII’s Sustainability Strategy
advances our long-term business healthby requiring an honest self-appraisal ofwhere we are and how we can do better.
I believe such assessments will reinforce
stakeholders’ trust in us, and ultimately
safeguard both our legacy and aspirationin service of the nation.
Chris Kastner
HII President and CEO

Another differentiator for us in the
manufacturing sector is our uniquecapabilities with respect to nuclear power.
While we recognize the energy intensive
realities of our shipbuilding mission, we arealso immensely proud that our rigorous
culture of safety allows for the harnessingof this clean nuclear energy to power
our ships with zero carbon emissions for
decades. This reflects our respect forscience, as well as our prioritization ofsafety and responsibility.

2024 Sustainability Report3Welcome

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Back to contents Message from our Chief Sustainability and Compliance Officer
In March 2022, we formally launched
our Sustainability Program and Strategy,building on our company’s long historyof environmental, social and governancecommitments and practices. As we setout on our sustainability journey, one thing
became crystal clear; at HII, we have agreat story to tell.
HII’s mission to serve the national
defense dates back more than 135 years.
Regardless of circumstance—whether
through periods of low demand or timesof urgent need—our success is propelledby an unflinching commitment to themission, values and purpose (MVP) of ourwork. The corporate MVP—mission, values
and purpose—approach is central to our

Sustainability Strategy. These core, guiding
principles connect our history to our future.
Our MVP provides the framework to
support the long-term health of theplanet, to strengthen relationships with
our employees and communities, and to
generate policies that reflect responsible
corporate governance. It provides themechanism to set goals, and measure
and report our progress toward them.
Our aspiration must be followed andmatched by action if we are to advanceour Sustainability Strategy and create
opportunities for our stakeholders.

and clarity, relying on our MVP for
guidance. Let us continue to be reasonable,
responsible and conscientious as we work
together to improve the condition of ourplanet—a solemn duty we all have—and the wellbeing of our coworkers andneighbors, while at the same time doing
our part to grow our company and keep
our nation strong.
Paul C. Harris
Executive Vice President and Chief
Sustainability and Compliance Officer

Thank you for supporting our commitment
to approach sustainability with calmness2024 Sustainability Report4Welcome

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Back to contents 

About HIIHII is America’s largest shipbuilder anda global, all-domain defense provider.
With a more than 135-year history ofadvancing U.S. national defense, we areunited by our mission in service of thenation, creating the advantage for ourcustomers to protect peace and freedom
around the world.

Our dedicated and skilled workforceof over 44,000 employees, buoyedby our deliberate business strategy, isdeeply committed to making a positive
impact across all fronts. In our Virginia
headquarters and across our threedivisions worldwide, we supply the world’s
most powerful, survivable naval ships, andtechnologies to safeguard our seas, sky,land, space, and cyber.
However, that is only one aspect of our
influence. HII is an active corporate partnerin the communities where we do businessand is dedicated to being a workplaceof choice, recognized by Forbes as oneof America’s best large employers forthree years in a row. Every day, we makea commitment to and hold ourselves
accountable for doing the right thing andmeeting the highest standards of ethics,
compliance and integrity.

VisionOur vision is to be the global leader in advancing national security and driving sustained value andopportunity for our customers, employees, shareholders, communities, and suppliers in accordancewith our values.

MissionOur mission is to deliver the world’s most powerful ships and all-domain solutions in service of thenation, creating the advantage for our customers to protect peace and freedom around the world.

ValuesOur values of integrity, safety, respect, engagement, responsibility, and performance are thefoundation of our work, guiding our actions and decisions to demonstrate the highest standardsof professional and ethical behavior. Together, we are united by our mission in service of thesuccess of our people, the security of our nation and the future of freedom around the world.

2024 Sustainability Report5Welcome

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Back to contents 

MAKING A DIFFERENCE ACROSS
THREE DIVISIONS

HII’s Newport News Shipbuilding division
is the largest industrial employer in Virginia,
with more than 25,000 employees that
include third-, fourth-, fifth-, and sixthgeneration shipbuilders. Founded on themotto “Always Good Ships,” Newport
News Shipbuilding has designed, built,
overhauled, and repaired more than 800
ships for the U.S. Navy and commercial
customers. It is the sole designer, builder
and refueler of U.S. Navy nuclear-powered
aircraft carriers and one of only two
shipyards capable of designing andbuilding nuclear-powered submarines.

HII’s Ingalls Shipbuilding division
is the largest manufacturing employer
in Mississippi and a major contributor
to Alabama’s economic growth. For 85
years, Ingalls Shipbuilding has designed,
built, and maintained amphibious ships,
destroyers, and cutters for the U.S. Navyand the U.S. Coast Guard. As the largest
supplier of U.S. Navy surface combatants,
Ingalls Shipbuilding simultaneously builds
four classes of ships and has pioneered
the development and production oftechnologically advanced, highly capable
ships for the surface U.S. Navy fleet
for decades.

HII’s Mission Technologies divisiondelivers domain expertise and advanced
technologies in the service of our mission
partners around the globe. With a focus on
the future, this team develops integrated
solutions that enable today’s connected,
all-domain force. Its capabilities include
Command, Control, Communications,
Computers, Cyber, Intelligence, Surveillance
and Reconnaissance (C5ISR) systems andoperations; the application of artificial
intelligence (AI) and machine learning(ML) to battlefield decisions; defensive
and offensive cyberspace strategies andelectronic warfare; unmanned, autonomous
systems; live virtual constructive training
solutions; platform modernization; andcritical nuclear operations.

2024 Sustainability Report6Welcome

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Back to contents 

HII at a Glance$11.5B$48.1B

44,000+6,700+

Annual Revenue
in 2023

Backlog at theEnd of 2023

Employees

Veterans Employed2024 Sustainability Report7Disclosures

Back to contents 

Our Approach to ImpactAss

Supporting our
Communities• Community
Relations• Energy Use & GHG
Management• Employee
Engagement• Diversity & Inclusion

Core
Responsibilities• Health & Safety• Product Quality& Safetyct• Environmental
Compliancepe
ResProtecting ourResourcestSecuring Our Business• Ethical Conducty• Supply Chain Management

MonitorEnga• Cybersecurity & Data Protection

R
e
s
p
o
n

sib
i
lit

Performance

ss

men
ple

Grounded in our MVP ethos, our intentional
MVP approach to sustainability guides
our strategy, structural policies andprogramming, and brings our culture ofservice and ethics to life. Our Sustainability
Strategy is optimized to yield longterm competitive advantages, createshareholder value, and generate positive
impacts for our people, communities,
environment and facilities. To earn thetrust of our stakeholders, we apply
these principles in our formal frameworks,
processes, company culture anddaily actions.

e

INTENTIONALITY AT EVERY STEP

Saf
ety
Im

Guided by our vision, mission andvalues, every aspect of our business ispurposeful and designed for action andresults, from the ways we engage our
stakeholders to how we approach oursustainability priorities.

ity
r
g
e
t
n
I

t

Protecting Our Resourcesen

Building Our Community

Monitor

Securing Our BusinessmgeWelcome2024 Sustainability Report8Welcome

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Building Our Community

COMMITMENT TO STAKEHOLDERS

Our values—integrity, safety, respect,
engagement, responsibility, andperformance—are our compass. Deeply
ingrained within our organizational fabric,
upheld by our corporate governance andbrought to life in our operations, this ethos
ensures the positive impacts of our visionand mission. In particular, we commit
to the following to have a positive impact
on our customers, shareholders, suppliers,
communities, and employees:
Our customers
In service of our national defense, wecreate and deliver the advantage for ourcustomers to protect peace and freedom
around the world. We prioritize our valued
customers by anticipating and innovating
to meet their needs, delivering platforms,
technologies and services that achieve thehighest standards of quality and safety.

Protecting Our Resources

Disclosures

Our shareholders
Ensuring enduring value and growthwithin our company is our unwaveringcommitment to our shareholders. We
relentlessly focus on enhancing our
performance and delivering exceptional
outcomes to sustain long-term value
for our shareholders.
Our suppliers, contractors, andsubcontractors
Our engagement with our contractors,
subcontractors, and suppliers is built ontransparency and respect. These partners
are an integral part of our team and areessential to our ability to achieve ourbusiness objectives and positively impact
communities and customers.

Back to contents 

Our communities
The communities surrounding ouroperations are where our employees andneighbors live and raise their families.
As a good corporate citizen, we takeresponsibility to do our part to ensure thesecommunities thrive above and beyond our
economic impact. We engage and support
neighbors, partners, and employees in ourcommunities via philanthropy, employee
volunteerism and civic engagement.
Our employees
Our employees are our most valued assets.
Across all disciplines, our professionals are
dedicated to delivering the highest quality
products and services. And we, in turn,
put their safety and wellbeing first. We
provide avenues for training and career
growth and amplify the voices of every
individual, ensuring a secure and respectfulenvironment for all.

2024 Sustainability Report9Welcome

Securing Our Business

Building Our Community

OUR SUSTAINABILITY PRIORITIESAND COMMITMENTS

Sustainability has long been embedded
in our business and daily work. In 2022
we completed our first comprehensive
sustainability assessment, examining ourrisks and opportunities with input fromour employees, customers, shareholders,
communities and suppliers. This served
as the foundation of our formalized
sustainability priorities, on which our workin 2023 to articulate our sustainability
commitments was based.

Protecting Our Resources

Disclosures

Our Sustainability Priorities:• Ethical conduct

Ensuring a solid foundation of
ethical conduct across all aspectsof our business• Product quality and safety
Supporting high-quality and safe
products through robust due diligencemeasures and audit checks

Back to contents • Supply chain management
Integrating sustainability into supply
chain management, including defining
environmental and social expectations
and standards for suppliers, assessing
supply chain risks, and improving supplierengagement and transparency• Cybersecurity and data protection
Managing and securing the digitallandscape of our products, services
and operations• Diversity and inclusion
Advancing progress in HII’s Board andleadership diversity, diversity andinclusion training, and the disclosure ofdiversity data, goals and targets• Community relations
Making our philanthropy and employee
volunteer programs more impactful inaddressing the most pressing needs ofour communities• Employee engagement
Addressing how HII gauges and responds
to employee sentiments relating tocompany culture, retention and overallsatisfaction• Health and safety
Integrating a health and safety mindset
within our company culture throughrobust training measures, conversations
and policies• Energy and greenhouse gas (GHG)
management
Measuring our energy usage and
GHG emissions, including reductions,improvements and activities impacting
these areas• Environmental compliance
Ensuring compliance to regulations,laws and policies through due diligenceprocesses, external and internal audit
reviews, and fostering a culture of ethics
and compliance2024 Sustainability Report10Welcome

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Back to contents 

Sustainability is values-driven and mission-focused.
SUSTAINABILITY FOCUS AREAS
EthicalConduct

Product
Quality &SafetySupply Chain
Management

Cyber

Diversity& Inclusion

Community
Relations

Employee
Engagement

Health& Safety

Energy& GHG
Management

Environmental
Compliance

HII Sustainability Strategy
MISSION. VALUES. PURPOSE.
HII’s Sustainability Strategy grows out of our six core values and incorporates stakeholder input and impacts into commitments and actions.

INTEGRITYRESPECTRESPONSIBILITY

SAFETYPERFORMANCEENGAGEMENTHII CORE VALUES
2024 Sustainability Report11Welcome

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OUR SUSTAINABILITY COMMITMENTS

Grounded in our sustainability priorities,
in 2023, we set ten sustainability
commitments to guide our Sustainability
Strategy. These commitments weredeveloped by four teams of subject matter
experts from across our three divisions.
The teams were charged with developing
specific sustainability objectives suited to
HII’s business and sustainability strategies. In
doing so, the teams considered the impact
on HII’s stakeholders, business strategy,
operations, customers, and regulatory
requirements.

Protecting Our Resources

Disclosures

Back to contents 

TO SECURE OUR BUSINESSTO BUILD OUR COMMUNITIESSupply Chain Management
Supplier Engagement Plan & Code of
Conduct: By the end of 2025, (a) wewill develop sustainability criteria andincorporate them into the Supplier
Engagement Plan, and (b) in parallel,
update the Supplier Code of Conduct toinclude a cross-reference to the Supplier
Engagement Plan for sustainability.

Employee Engagement
Increase Engagement: We will continue todrive increased employee engagement
as measured by annual surveys to create
value for the Company.

Supply Chain Roadmap: We will conduct
a current state analysis of supply chain
risks, capabilities, and processes in 2024.
We will develop a roadmap by the end of2025 that will ultimately increase tracingof supply chain risks (e.g., countries ofconcern, conflict minerals, counterfeit
parts, potential environmental/climaterisk disruptions, human capital, andcybersecurity) by 2030 through improved
supplier engagement and data tracking.

Diversity and Inclusion
Increase Representation of Women andPeople of Color: We commit to good faithefforts to increase total representationof women and people of color across alllevels of leadership in accordance with ourannual affirmative action plan.
Increase Veteran Workforce: We commit
to increasing the hiring of Veterans suchthat Veterans make up 20% of HII’s overall
workforce by 2030.
Increase Recruiting from HBCUs: We
commit to increasing the percentage
of interns and graduates recruited fromHistorical Black Colleges and Universities(HBCUs) by 10% annually through 2030.

Community Relations
Increase Education Giving: We will target
40% of our total giving to Education by
2030 while also prioritizing the core areasof Community and Veterans & Military.
Increase Employee Volunteerism: We will
make good faith efforts to increase thenumber of employee volunteers by 10%
annually through 2030.
Meals to Address Health and Hunger:
Focusing on the crisis of health and hunger,
HII and our employees will provide 100,000
meals annually to those in our communities
facing food and nutrition insecurity.
TO PROTECT OUR RESOURCES

Energy and GHG Management
Roadmap to Reduce GHG Emissions:
By the end of 2024, we will develop aroadmap to exceed a 30% reduction in
Scope 1 and 2 GHG emissions based on the2022 baseline. We have estimated our 2022
baseline of Scope 1 and 2 GHG emissions
to be 323 thousand metric tons of CO₂eq.

2024 Sustainability Report12Welcome

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2023 Sustainability Highlights

ENVIRONMENTSOCIAL• Our key facilities were ISO 14001 certified, validating• We have made charitable donations amounting

GOVERNANCE• HII received America’s Most Innovative

our environmental management system.

to over $7.2 million* to our local communities.

Companies Award in 2023 from Fortune.

• Informed by our 60-year legacy of building• HII was recognized by Forbes as one of America’s• We delivered anti-corruption training to

nuclear-powered vessels, we recognize theimportant role of carbon-free nuclear power inachieving a reduced-carbon future.

• Our divisions have received recognition for theiradherence to regulatory standards and evengoing beyond them.

• We are exploring alternative energy sources at
key sites and facilities.

Best Large Employers in 2023.

• HII received the 2023 Honoring Investments in
Recruiting and Employing (HIRE) Vets MedallionAward from the U.S. Departmentof Labor.

• More than 44,000 employees make up the HII team.
• Over 20 employee resource groups are active
across all three divisions of HII.

approximately 90% of our employees.

• We provided approximately 90% of our business
partners with information on ethical proceduresand policies.

• 249 “On-the-Spot” Ethics Awards were
presented to employees.

• More than 8,000 suppliers and partners, including
many small and disadvantaged businesses, help
us meet our customers’ needs.

*Including contributions from Mission Technologies LLCs.

2024 Sustainability Report

13

SECURING
OUR
BUSINESS2024 Sustainability Report14

Welcome

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Back to contents Business Impact at a Glance

We assessed 90% of
operating locations forcorruption-related risks.

We provided 90% of
our business partners
with information on ethicalprocedures and policies.

There were zero incidentsof corruption identified,contracts terminated, or
nonrenewed or monetarylosses due to corruption in
2023.

249 “On-the-Spot”
Ethics Awards were
presented to employees.

"At HII we’re all teammates. We treat people with integrity and respect. We always start with
our Mission and our Values. We have a culture of winning and we’re going to win the right way.”
Chris Kastner
HII President and CEO

2024 Sustainability Report15

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Corporate GovernanceOur workplace culture, the high qualityof our products and services and our
stakeholders’ trust and confidence inour work all reflect our strong corporate
governance.

It reinforces personal responsibility andaccountability and ensures that our actionsalign with our values, from our dataand cybersecurity policies to our supply
chain practices.

Corporate governance is how we put ourvalues of integrity, engagement, respect,
and performance into action. It integrates
the notion of “doing the right thing everyday” into our everyday operations.

We designed our governance structures
to optimize the relationships among ourBoard of Directors, management, andshareholders, and to bring our people,
programs, policies and actions together to

DIRECTOR INDEPENDENCE
Independent, Non-Executive Chairman

DIRECTOR DIVERSITY(GENDER)

DIRECTOR DIVERSITY(MINORITY)

1

11 of 1233%

Nominees are
independent■ Non-Independent■ Independent■ Female■ MaleDIRECTOR TENURE

25%■ Minority

4

6.2

Years
AverageTenure462■ Non-Minority

DIRECTOR AGE MIX
Retirement Age 76

Underrepresented
Groups98

11

At the top of HII’s corporate governancestructure is the Board of Directors.
Throughout the year, the Board provides
leadership and regular reviews, evaluations,and oversight of our efforts to meet our
stakeholders' interests, with directors
exercising their business judgment andensuring that shareholder interests areadvanced through engagement with
our employees, customers, suppliers,
government officials, and the public.

3

4

FemaleRepresentation

OUR BOARD OF DIRECTORS

strengthen our governance foundation.
Our approach ensures that at every levelacross all aspects of our operations,
we are not only operating in compliancewith applicable legal and regulatory
requirements but also strengthening our
accountability, improving our performance,
promoting our stakeholders interests,
meeting stakeholder high standards, andworking together toward the Company’s
long-term success.

■ 1-3 years ■ 4-6 years ■ 7-13 years

3

65

Years
AverageAge

5■ 70s ■ 60s ■ 50s

2024 Sustainability Report

16Building Our Community

Each year the Board of Directors performs
a self-evaluation to assess its overall
effectiveness and the effectiveness of
its standing committees’ oversight of thematters for which they are responsible,
including sustainability.
HII BOARD COMMITTEESIn addition to monitoring and assessing
advancements toward goals andobjectives, providing guidance, andenforcing accountability within Company
management, the Board has five standing
oversight committees. Each committee

Disclosures

Back to contents 

HII SUSTAINABILITY GOVERNANCE STRUCTURE

functions based on an individual charter,
which promotes clarity on the committees’
respective roles and ensures cohesive
operations in alignment with each otherand the entire Board. The committee
charters are published on our website.
MANAGING AND OVERSEEINGSUSTAINABILITY WORK

To support our sustainability commitments,
in 2023, we expanded our sustainability
office, led by our chief sustainability andcompliance officer, by hiring a sustainability
manager to support project management
and strategy implementation. Additionally,
HII has a robust sustainability governancestructure, whereby the Board and Board
committees have oversight of HII’s
sustainability program.
Over the past year, HII’s chief sustainability
and compliance officer has briefed theBoard on HII’s Sustainability Program.
Additionally, either the full Board or a
Board committee is assigned oversight
responsibility for and briefed on individualsustainability priority areas.

Board of Directors
The full board has general oversight of supply chain and products, including product quality & safety and supply
chain management focus areas. Board committees have oversight responsibilities for other sustainability focus areas.

Oversight

Our Board of Directors brings a wide rangeof skills, experience and perspectives tothe oversight of HII. Directors regularly
participate in external director education
programs to broaden their expertise anddeepen their understanding of diverse
subjects, such as sustainability. This blendof varied experiences and skills ensures
the Board is well prepared to oversee
the efficacy of HII’s overall strategy andoperations, including our sustainability
commitments.

Protecting Our Resources

GovernanceCommittee

Compensation
Committee

Audit
Committee

Cybersecurity
Committee

Senior LeadershipResponsible for Sustainability Strategy and overall company performance.
Approves decisions made by the Corporate Sustainability Committee.
CEO, Division Presidents, C-suite officers, and business function EVPs

Corporate Sustainability Committee
Leadership & Planning

Securing Our Business

Implementation

WelcomeResponsible for Sustainability Program leadership and decision-making
and led by the chief sustainability and compliance officer.
11-12 members, including members of the senior leadership team,division representatives, and key business function leaders

Chief Sustainability and Compliance Officer
Responsible for Sustainability Program strategic and operationaloversight. CSO and team members coordinate efforts between Tiger
Teams and the Corporate Sustainability Committee.

Division Implementation Resources
Operational responsibility for implementing sustainability
goals and initiatives and tracking progress.
Newport News
Shipbuilding

Ingalls
Shipbuilding

MissionTechnologies

Tiger Teams
Responsible for identifying
goals and initiatives to support
sustainability progress in specificfocus areas and coordination
implementation across divisions.
Tiger Team 1
D&I and Employee Engagement
Tiger Team 2
Community Relations
Tiger Team 3
Supply Chain Management
Tiger Team 4
Energy & GHG Management2024 Sustainability Report17

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BOARD LEVEL RESPONSIBILITIESPOLICIES AND GUIDELINES

FULL BOARD

GOVERNANCE COMMITTEECOMPENSATION COMMITTEE

Oversight of supply chain andproducts, including:General oversight of sustainability
program and four priority areas:

Oversight of human capitalmanagement, including:• Product quality and safety• Supply chain management• Ethical conduct• Community relations• Employee health and safety• Environmental compliance• Diversity and inclusion• Employee engagement

AUDIT COMMITTEECYBERSECURITY COMMITTEEFINANCE COMMITTEE

Oversight of sustainability assurance
and two priority areas:

Oversight of all things related
to cybersecurity

Oversight of financial capitalmanagement, including:• Energy and greenhouse gas
emissions management• Policies and strategies, capital
structure and financial condition

Our policies and practices are where ourcorporate governance comes to life, giving
structure to our actions, expectations
and behaviors.
Our corporate governance guidelines
detail the Board, Chair and Director
responsibilities, requirements for Board andcommittee membership, and rules related
to director independence and conflictsof interest. They also prioritize director
onboarding and education and provide
guidance for Board communications withsenior leadership and outside advisors.
These guidelines inform our shareholders
regarding what to expect from us
and keep us connected to their longterm interests, while strengthening our
accountability and building public trust in
our Company.

• Employee benefits plan
• Enterprise risk management2024 Sustainability Report18

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Ethical Conduct
At HII, results matter, but a performancegoal never justifies unethical behavior.
As a respected contractor, a responsible
community member, and a company
with a strong ethical culture, we strive todo the right thing even when it may bedifficult to do so, guided by our values.
MANAGING COMPLIANCE

HII has an Ethics and Compliance Program,headed by a corporate business conduct
officer who reports to the chief humanresources officer and a chief complianceofficer who reports directly to the chief
legal officer. Our Ethics and Compliance
Program focuses on both ethical conductand compliance with the law. The Program
officers coordinate with each other tointegrate compliance and ethics into
the Company’s day-to-day operations
and cultural behaviors. The Ethics andCompliance Program, including therespective key performance indicators(KPIs), is regularly reviewed by the Boardof Directors and audited annually by ourInternal Audit Team.
At the core of HII’s compliance efforts lies
the principle of “Creating Incentives andEnforcing Discipline.” We strongly advocate
for the creation of incentives that promote
ethical conduct and active engagementin our Ethics and Compliance Program.
To encourage a sense of responsibility
and commitment, HII has integrated
various performance-driven measures toincentivize both business operations andleadership involvement in the Program.
For instance, within HII’s Annual Incentive
Plan to reward senior leadership based oncompany performance, meeting specifiedcompliance targets is a crucial factor.
Any compliance shortfall could impact
the incentive compensation for seniorleadership. Incentives help ensure thatbusiness leaders own and are accountablefor compliance as part of what it means
to perform at HII.

Our foundational Code of Ethics andBusiness Conduct and policies, charters,
and guidelines ensure our shared company
values make an impact on every aspectof our work.
The Code of Ethics and Business Conduct
defines expectations for everyone who does
business with HII, and we operationalize
it across our three divisions. Each division
has business conduct officers who serve as
employee resources to address questions
and foster employee accountability
and open communication. The divisions
also have business conduct representatives
embedded within their organizations
who help raise employee concerns
and collaborate on ethics awareness,
communication and training. Additionally,
cross-functional ethics committees
provide guidance and oversight.

2024 Sustainability Report19Welcome

Securing Our Business

Building Our Community

SETTING EXPECTATIONS FOR
EVERYDAY WORK

We expect all our employees to treat
others with dignity and respect and abideby the laws, regulations, policies, andprocedures that apply to our businesswherever we operate. Our policies andpractices reinforce our values of integrity,
respect, engagement, and performanceand guide the implementation of thesevalues in daily work.

Protecting Our Resources

Disclosures

We actively engage our employees
in our Code of Ethics and BusinessConduct at every stage of their tenure,including through onboarding and annual
performance reviews. From the time theyjoin us, every employee must complete
all ethics and compliance training
requirements on topics including workplaceharassment, cybersecurity, retaliation in theworkplace, and anti-corruption practices,in a timely manner.

IN 2023, WE:• Assessed approximately 90% of our operating locations for corruption-related risks• Delivered anti-corruption training to approximately 90% of our employees• Provided approximately 90% of our business partners with information on ethicalprocedures and policies

Back to contents Supervisors and managers are expected
to serve as ethical models for others and to
conduct themselves in accordance with ourvalues. This includes encouraging open andhonest dialogue and maintaining an opendoor policy for employee questions aboutbusiness conduct, ethics and compliance.
Employees and suppliers can report asuspected violation through our 24/7
OpenLine or online via the web reportingsite. Our non-retaliation policy reinforces
our long-standing commitment to a safe
reporting environment. The volume of cases
received is a metric we track regularly.

ON-THE SPOT ETHICSRECOGNITION PROGRAM
We actively engage everyone at HII tobring our Code of Ethics and BusinessConduct to their daily work. Our “On-theSpot” Ethics recognition program gives
employees the opportunity to recognize
their peers whose ethical behavior
and actions in their everyday work
demonstrate HII’s values. In 2023, 249“On-the-Spot” Ethics Awards were
presented to employees.

ANTI-CORRUPTION

Our Anti-Corruption Compliance
Program, a cornerstone of our Ethics
and Compliance Program, reinforcescompliance across our day-to-day
operations. Our Board is briefed regularly,
and each of our divisions develops anannual plan to detect, prevent andremediate misconduct in HII’s business.

• Discovered no incidents of corruption, contracts terminated or non-renewed
or monetary losses in 2023 due to corruption

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Upon joining HII and annually thereafter,
employees are trained in anti-corruption
practices, including topics such as
Federal Acquisition Regulation (FAR)
mandatory disclosures, gifts, hospitality,and entertainment and conflicts ofinterest. This training is reinforced byregular reminders from our CEO regarding
compliance obligations and responsibilities,
including the obligation to report known orsuspected misconduct.
HUMAN RIGHTS

We train our employees on thefundamental human rights tenets ofrespect, civility and fairness that apply
to all human beings, regardless ofgender, nationality, place of residence,
sex, ethnicity, religion, color or any othercategorization defined by federal law. HII
participates annually in the Human Rights
Campaign’s Corporate Equality Index.

Protecting Our Resources

Disclosures

Back to contents 

LOBBYING AND POLITICAL ACTIVITIESAs a leading company in the aerospaceand defense sector and a significant
employer in multiple states, HII remains
actively involved in the public policy
process at the federal, state and local
levels on behalf of our shareholders andemployees. Our political engagement isundertaken with a strong commitment
to HII’s mission, purpose and values.
This involvement includes advocacy
efforts at the federal, state and local levels,in accordance with our robust internal
policies and disclosed by the Company
through public filings in compliance withall applicable laws and regulations. Mostof our lobbying expenses are considered
unallowable costs under our government
contracts and non-deductible expenses fortax purposes under the Internal Revenue
Code. For additional information on ourpolitical engagement, review our Political
Engagement Disclosure.

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Back to contents Data and Cybersecurity
Our data privacy and cybersecurity policies enable us to achieve the highest levels of
operational performance and deliver the products and services that keep our world safe.
Compliance with our policies is the responsibility of every HII employee.

DATA PRIVACY AND SECURITY

Our commitment to cybersecurity anddata privacy starts with how we collect,use, share, disclose, and dispose ofcustomer, employee and supplier data.
We collect only the information needed forbusiness purposes and proactively protect
it from theft, alteration, compromise,and destruction wherever it resides on
our networks, including through a welldocumented and exercised insider threat
detection program. We safeguard data incompliance with—and in some cases evenexceeding—applicable federal, state andinternational laws, contract requirements
and industry best practices.
Our Privacy Advisory Board provides
leadership across our three divisions on
privacy issues. It helps develop, review,recommend and implement privacy

policies, procedures and training activities,
which are operationalized across our threedivisions by an on-the-ground privacy team.
Through a risk-based, enterprise-wide
Privacy Program, we invest resources into
identifying, assessing and appropriately
managing vulnerabilities and threats topersonal information and the individuals it
belongs to.
We continue to mature our Privacy
Program, controls and training according
to contract requirements, industry
best practices, and state, federal andinternational laws. Our employee privacy
statement is consistent with the privacy
principles of notice and transparency. We
deliver employee training on new anddeveloping state privacy laws and audit
our privacy controls and practices on an
ongoing basis to ensure their effectiveness.

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OVE RS IGHTCYBERSECURITY

At HII, protecting cybersecurity is acontinuous cycle that is infused into
every aspect of our operations.

HII Board Cybersecurity Committee

A dedicated Board-level Cybersecurity
Committee supervises our strategic useof people, processes and technology,
from overseeing policies and procedures
to participating with management
in “tabletop” exercises to test HII’s
cybersecurity incident response plan.
We diligently collaborate with ourgovernment and industry peers andpartners to stay ahead of threats andknown attacks, and our ongoing security
awareness and training program helps us
disseminate relevant knowledge throughour workforce. Employees learn how torecognize potential cyber threats, safely
access HII information technology (IT)systems and data and report suspicious
activity thanks to their training in phishing,social engineering and other advanced
cyber tactics. Internal and externalcybersecurity audits, annual penetration

Disclosures

MAN AGE ME N T AN D E X ECUTIONHII Leadership TeamE X ECU T I ON
HII Corporate

Ingalls
Shipbuilding

Newport News
Shipbuilding

MissionTechnologies

Beyond HII’s operations, HII works with our
nation’s intelligence and cyber operations
communities to defend our interests incyberspace and anticipate emerging

tests and certified regulatory complianceassessments are actions we take topre-emptively reduce the chances of
security incidents.
If a cyberattack manages to get throughour defenses, we strive to make every
moment count. This includes shortening
the time between threat detection andprotection through continuous monitoring,

minimizing impact and ensuring business
continuity. Our recovery processes
enable us to restore critical data and IT
systems and activities such as our annual,enterprise-wide tabletop exercises ensure
we’re ready to put these processes into
practice quickly and effectively.

threats. Our capabilities in cybersecurity,
network architecture, reverse engineering,and software and hardware development
enable us to support sensitive missions
for the U.S. military and federal agency
partners. Our Mission Technologies division
supported the development of federalcybersecurity standards, and our experts
assisted the National Institute of Standards
and Technology in developing security
protocols and frameworks and applying
practices to help mitigate cyberattacks.

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Back to contents Supply Chain Management
More than 8,000 suppliers and partners,
including many small and disadvantaged
businesses, help us meet our customers’
needs. We engage with an array of
suppliers, ranging from substantial,
nationally recognized entities to smallscale "mom-and-pop" businesses.
We prioritize tailored support andcollaboration with each partner.
Our emphasis on maintaining top-tierproduct quality and security entails
close cooperation with our partners.
We understand the pivotal role playedby our supply chain relationships in the
success of our business, and we remain
acutely aware of the need to foster andsafeguard these relationships. Our supply
chain management ensures that we andour suppliers and partners are all working
together to maximize our collective
success and impact.

To this end, we have set two supply chain
management sustainability commitments:
1. Supplier Engagement & Code of
Conduct: By the end of 2025, (a) wewill develop sustainability criteria andincorporate them into the Supplier
Engagement Plan, and (b) in parallel,
update the Supplier Code of Conduct
to include a cross-reference to
the Supplier Engagement Plan forsustainability.
2. Supply Chain Roadmap: We willconduct a current state analysis of supply
chain risks, capabilities and processes
in 2024. We will develop a roadmap
by the end of 2025 that will ultimately
increase tracing of supply chain risks(e.g., countries of concern, conflictminerals, counterfeit parts, potential
environmental/climate-risk disruptions,human capital, and cybersecurity)
by 2030 through improved supplierengagement and data tracking.

To ensure maximum practicable

OVERSIGHT AND ACCOUNTABILITY

Our supply chain management due
diligence process uses external resources
and robust internal processes to assess
the full spectrum of risks associated with
our supply chain.
In areas ranging from quality tocybersecurity and intellectual property
protection, we hold our suppliers to our own
high standards. The supplier information
we collect and verify through our extensive
supplier data certification process andongoing supplier education throughresources such as our website ensurethat our suppliers meet expectations
throughout the business relationship.
Our requirements cover record-keeping,
employment practices, anti-corruption
controls and compliance, adherence toall anti-trust laws and regulations, andavoidance of insider trading and conflictsof interest.

opportunities and good faith efforts indiversifying Newport News Shipbuilding’s
supply base, Newport News Shipbuilding
attends events hosted by nationallyknown organizations that support small
businesses and minority-owned
businesses. In 2023, Newport News
Shipbuilding alone supported approximately
900 small businesses, including 100
women-owned small businesses and 70
Veteran-owned small businesses.

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Because we are aware of the impact of
HII’s supply chain on the world, we require
our suppliers to protect the health, safety
and welfare of all those affected by theiractivities and to comply with all applicable
environmental, health and safety laws,
regulations, and directives. These include
laws related to conflict minerals, humantrafficking, human rights and forced

Protecting Our Resources

Disclosureslabor, such as California’s Transparency
in Supply Chains Act (SB657), the U.K.
Modern Slavery Act of 2015, the AustralianCommonwealth Modern Slavery Act of2018 and the U.S. government’s 48 CFR §52.222-50 for Combating Trafficking in
Persons. We also expect our suppliers tohandle sensitive confidential, proprietaryand personal information properly andBack to contents 

not use it for any purpose beyond what
was intended without prior authorization.
Responsible sourcing, also referred to as
supply chain responsibility, is a voluntarycommitment by HII to account for socialand environmental considerations whenmanaging its relationships with suppliers.
Ethical conduct is part of our contracting
discussions, and business responsibility
and sustainability are part of theonboarding process.
Auditing is critical to supplier oversightand accountability. Our policies undergo
annual review to ensure that they are
current, complete and accurate. HII may
periodically review a subset of suppliers
to ensure that they are following theguidelines reflected in the terms andconditions of their purchase orders.
Technical investments and supplierrisk mitigations are regularly assessed,
and scores for quality and risk areroutinely evaluated and guide our
procurement decisions.

HOLDING OUR SUPPLIERS TO OUR
HIGH STANDARDSTo ensure that all parties across our value
chain will do the right thing at all times,
we have expanded our Company’s Codeof Ethics and Business Conduct into acomprehensive Supplier Code of Conduct
and provide our suppliers with the training,oversight and governance necessary toprotect our collective good standing.

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SUPPLIER SECURITY AND
INFORMATION PROTECTION

SUPPLIER ENVIRONMENT, HEALTHAND SAFETY

CONFLICT MINERALS AND OTHER
SOCIAL ISSUES

All the pieces of our cybersecurity anddata information protection plan work
together to have a positive impact
throughout our operations. Across our
supply chain, information security andcybersecurity professionals engage key
suppliers to safeguard sensitive data andmission-critical operations. Across ouroperations, our privacy and cybersecurity
programs feed into compliance andrisk management.

Suppliers are required to operate in amanner that actively mitigates risks. We
expect our applicable suppliers to adopt
environmental management systemprinciples to systematically manage risks,hazards and opportunities relating to theenvironment. This includes addressing
potential risks, such as regulatory noncompliance and reputational loss, while
also exploring opportunities for businessgrowth through responsible operations
and product stewardship. Suppliers
are expected to adhere to all relevant
environmental, health and safety laws,
ensuring the wellbeing of their employees,
visitors and all other individuals impacted
by their operations.

Aerospace and defense work involves
critical minerals that are or may become
scarce or more costly in time due tolimited supply, political sanctions, or othergovernment actions, or increased demand.
These minerals include tin, tantalum,
tungsten and gold (3TGs), commonly
known as “conflict minerals,” for which
the SEC has established annual disclosure
requirements through the filing of Form SD.

With annual self-attestations from our
suppliers, we conduct reviews to gauge
the likelihood and severity of risk. These
reviews provide an assessment of ourplans, which we modify on an ongoingbasis in accordance with changes in laws
and regulations, detected misconduct andopportunities for improvement.

HII aims to source conflict minerals
responsibly, consistent with ourcontractual commitments and regulatory
requirements, from suppliers that share our
ethical values and support compliance with
the SEC regulations on conflict minerals.
Our participation in industry organizations
focused on compliance with the SEC
regulations on conflict minerals keeps

us abreast of the latest issues, and weshare this knowledge with our employees
and suppliers and with any otherinterested parties through our publicly
available website. We not only perform
due diligence on the sourcing of conflictminerals in our supply chain, but we havealso implemented procedures to detectand mitigate the risk of using counterfeit
electronic parts in the items we procure,
as well as to invoke the expectation thathuman trafficking is not supported by anyof our suppliers or their subcontractors.
These activities provide a solid foundationfor our responsible sourcing efforts. We also
include conflict minerals as a core elementin our compliance program.
For more information regarding conflictminerals, please visit our website.

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Product Quality and Safety
Ensuring high quality and safety in our
products is mission critical. As a leading
provider of ships and technology to the
U.S. Armed Forces, our products andservices play a direct role in protecting
peace and freedom in the U.S. andaround the world. To this end, weleverage strong programs, policies andsystems to ensure product quality andsafety for our customers.

QUALITY MANAGEMENT SYSTEM

Comprehensive and consistent
management, across multiple layers,
governs our quality and safety initiatives.
Our internal Quality Policy guides our
Quality Management System (QMS) to
provide products and services that meetboth customer and safety requirements.
Our QMS at our two shipyards and key
Mission Technologies facilities, alignedwith ISO 9001, governs the quality ofour policies and procedures. Our QMS
aligns with the seven ISO 9001 quality
management principles: customer
focus, leadership, engagement, process
approach, improvements, evidencebased decision making, and a focus onexternal relationships. Our Enterprise Risk
Management (ERM) process enables us
to identify opportunities for improvement.
We use data to strengthen and sharpen
our efforts and improve our products.
This year, Newport News Shipbuilding

created a database of all service andinspection information. It currently contains
over 32,000 pieces of inspection dataand captures 95% of product-related
information. Our Mission Technologies
division has developed a database with
KPIs that extracts common data acrossseveral client groups, to help the teammanage improvement efforts. At Ingalls
Shipbuilding, we have enhanced ourquality metrics to provide a more forwardlooking and risk-based view of quality
performance. Ingalls Shipbuilding alsoestablished over 140 quality objectives for
its shipyard organizations and expanded
the reach of its QMS in 2023.
We use internal and external audits todetermine how well our quality and safety
initiatives are working. Our audit plans are
informed by performance assessment
from prior years, so we are always building
upon prior knowledge.

At Mission Technologies, internal audits
numbering in the thousands ensure quality
and safety across 800 programs—quality
advocates continuously share lessons
learned guided by their QMS. This division
has also been identifying best practices
across its operations, documenting themwithin a manual for knowledge sharing anddeveloping consistent metrics to gauge
improvement over time.

Ingalls Shipbuilding has
been ISO 9001 certified
since 1992 and was oneof the first U.S. shipyards
to be certified to thisstandard.

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OUR DEDICATION TO MEETING QUALITY
AND SAFETY EXPECTATIONS EXTENDSTO OUR SUPPLY CHAIN

Our dedication to quality and safety
extends to the thousands of suppliers we
do business with worldwide.
We have engaged quality and safety
teams in selected contracts to get aheadof inefficiencies, unexpected delays, andpoor quality and performance acrossthe supply chain.
We have increased our presence offsite withquality inspectors who visit our suppliers’
facilities. Our quality inspectors watch parts
being produced, to catch defects before
the parts arrive at our facilities.
We have also increased our use of vendor
correction notices and expanded theirpurview. Now, when we ask a vendor
to correct a defect, they fix not only theimmediate problem but also its root cause,to prevent similar issues in the future.

Protecting Our Resources

Disclosures

Because people are integral to the qualityof our products and the safety of ouroperations across our value chain, we
help our critical suppliers with skilledlabor and manage turnover using metrics
and feedback mechanisms to guide
improvements.
QUALITY IMPROVEMENT

To work smarter and spot problems
sooner, we have been gathering andconsolidating feedback across ouroperations so that we can leverage
lessons learned for future impact.

Back to contents collection and more; putting vital researchand documents at their fingertips, saving
time, and maximizing efficiency and impact.
In 2023, we hosted a cross-sector quality
summit to share customer stories,
challenges, upcoming requirements, bestpractices and more. This collaboration
has been going strong all year. Ingalls
Shipbuilding is also collaborating with
Newport News Shipbuilding on artificial
intelligence, machine learning and data
analytics to advance preventative action
and continuous improvement.

We know from experience thatpreventative action and continuous
improvement work. Our Quality
Improvement Teams have mademeasurable advances in supplier quality,
equipment care and protection, material
loss and damage mitigation, andcraft workmanship and compartmentcompletion. Inspectors are also being
equipped with tablets for drawings, data

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Disclosures

Back to contents 

Our Social Impact at a Glance

More than 44,000
employees make up the
HII team.

We have donated$7.2 million* to charitableorganizations in
our communities.

In 2023, Forbes named
HII one of America’s Best
Employers for Womenand HII received the 2023
Gold HIRE Vets MedallionAward from the U.S.
Department of Labor.

Over 20 employee
resource groups are active
across all three divisionsof HII.

*Including contributions from Mission Technologies LLCs.

“Sustainability performance is tied to the wellbeing and priorities of our key stakeholders.
We identify opportunities to make our business more sustainable and responsible in operations,while contributing to our long-term strategy.”Paul C. Harris
Executive Vice President and Chief Sustainability and Compliance Officer

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Back to contents Providing Jobs and Opportunity
As America’s largest shipbuilder anda major community employer, HII has
the resources and influence to make adifference on multiple levels, and wetake this responsibility seriously. Inside
our operations, we create a workplaceof choice, where employees from diverse
backgrounds can thrive, grow and feelappreciated. We deliver sustainablecareer opportunities in high-value fields
that keep talent in town, join forces withlocal organizations, and empower our
employees to give back to the causesthat matter to them. In the regions where
we do business, we also positively impact
the local economy and build stronger
communities through our giving andengagement efforts.

TALENT MANAGEMENT AND
ENGAGEMENTOur more than 44,000 employees areat the heart of our mission, and we arecommitted to making a positive impact
on their lives. Every aspect of HII’s talentmanagement, including our culture, isdesigned to help our team members thrive
both personally and professionally.

In 2023, HII’s Mission Technologies and Newport News
Shipbuilding divisions honored over 440 employees andthe impact of their work across several strategic priorities in
the Model of Excellence and Impact Awards, respectively.

We view our workforce development
process as critical to our success andhave developed a robust and effective
succession planning process that ensurescontinuity in our leadership ranks. We havefilled 82% of open vice president positions
with internal hires.

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RECRUITMENT AND ONBOARDING

We create meaningful engagement at
every step of our team members’ careers.
An engaged workforce, committed to HII’s
MVP, drives better performance. Putting
our values into practice creates long-term
benefits for our employees, customers,
shareholders, and suppliers and for thecommunities we serve. Because of this, we
strive to engage our employees by fostering
two-way dialogue with them and providingthem with growth opportunities throughtraining and development programs.
Our Newport News Shipbuilding division
leverages job fairs and university andcommunity college partnerships forrecruitment. Newport News Shipbuilding
also partners with the Hampton Roads
Workforce Council, which connects
residents with maritime careers to support
them in finding full-time employment.

Protecting Our Resources

Disclosures

Approximately 9,500 new team members
joined our three divisions in 2023. Once on
board, we intentionally and strategically
help new team members integrate into
the HII culture. Our Navigator and Buddy
programs at our shipyard facilities pair
new hires with experienced teammates.
Regular formal and informal check-ins withthese teammates provide an avenue forour new team members to ask questions,
receive resources and be introduced toother employees. The purpose of the
program is to ensure there is a culture ofbelonging felt by all team members fromthe beginning of their tenure at HII. This
program is only one of the many ways
we support our new hires, and in a recent
survey at Newport News Shipbuilding,
89% of the new hires surveyed reported apositive onboarding experience.
Ingall's Shipbuilding’s Culture Connectors
are another way we support our workforce
and cultivate a culture of belonging

Back to contents and purpose. Culture Connectors are
employees responsible for engaging
with our deskless workforce to ensure
awareness of key events, opportunities andimportant announcements. The program
was implemented in 2023 and over 155
Culture Connectors have supported theprogram and kept our shipyard workforce
up-to-date on key communications.
As part of our ten 2023 sustainability
commitments, we will continue to driveincreased employee engagement, asmeasured by annual surveys to create
value for our Company. As such, we collectfeedback throughout the employee
experience, including through assessment
surveys 90 days after a new hire,organizational health surveys, enterpriseethics surveys, pulse surveys and annual
Gallup surveys. We use the results of eachsurvey to inform our future initiatives
and actions.

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Disclosures

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BUILDING OUR TALENT PIPELINE

To help us meet our large demand fortalent, we have worked to create, develop
and maintain multiple talent pipelines.
Our nationally renowned Newport News
Shipbuilding Apprentice School boasts
a long-standing reputation, having
produced over 14,000 graduates since its
establishment in 1919. It became a schoolof higher education in 2020, and this year,
we awarded our first Associate in Applied
Science degrees. The school offers four-,
five- and eight-year apprenticeships
in 19 shipbuilding disciplines and eightadvanced programs of study. Recognizedby the State Council of Higher Education,
it functions as a post-secondary
institution and holds accreditation as
an associate degree-granting entity. In
2019, the school introduced the Youth
Builders and Apprentice X Program, apre-apprenticeship initiative that aims
to give students interested in enrolling in
the Apprentice School the tools that theyneed to be able to do so. Additionally, itruns a night school program catering to
shipbuilders seeking continued education.

“Our Ray Bagley Innovation Lab allows students to experience the various
trades used to build ships in a safe, controlled environment. The uniqueexperience also helps break down preconceived notions about construction
trades. We don’t just build ships here; we build careers.”
Dr. Latitia McCane
Director of Education, Newport News Shipbuilding Apprentice School

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This institution plays a pivotal role intraining our skilled trade and technicalworkforce while developing future leaders
within our Company. We employ all ourapprentices, with over 90% remaining at
HII one year after graduation and over
75% remaining beyond 10 years.
In 2023, the Apprentice School’s Innovation
Lab was dedicated in honor of Ray Bagley,
retired vice president of trades operations
at Newport News Shipbuilding. Bagleyretired in 2018 after a 43-year long careerwith Newport News Shipbuilding, whichbegan as an apprentice painter. The
Ray Bagley Innovation Lab harnesses thepower of technology, allowing students
to experience various shipbuilding tradesin a safe and controlled environment.
The lab has state-of-the-art augmented
and virtual reality training equipment,
which has received national attention for
training the next generation of shipbuilders.
Workstations in the lab are mobile, allowing
them to be moved into the adjacent
gymnasium, used at high school andhiring events.

Protecting Our Resources

Disclosures

Back to contents 

We have also developed long-standing
relationships with local community colleges.
The Ingalls Shipbuilding Apprentice
School, opened in 1952, has partnered with
Mississippi Gulf Coast Community College
to permit the latter’s apprentices to earncredits toward an associate degree. In
2023, there were over 830 applications
to join the program. Through these typesof initiatives, HII is able to give back to thecommunity and recruit talented individuals.
In 2023, over 1,400 apprentices areenrolled in more than 27 crafts andadvanced programs at our two
shipbuilding segments. From nuclear pipe
welders to senior executives, we employ
approximately 4,100 apprentice school
alumni at Newport News and Ingalls.

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TALENT DEVELOPMENT

At HII we build skills and careers. We arecommitted to employee training at alllevels of the organization. Mentoring,coaching, executive leadership programs
and peer rotation ensure HII continues
to be a place where employees at alllevels can grow, and where knowledge isshared. Our division employees receive an
average of 59 hours of training per year.

Protecting Our Resources

Disclosures

In 2023, HII focused on talent development
as part of its talent pipeline strategy. For
example, supporting meaningful internshipprograms across all divisions has resulted
in a seamless integration of former interns
into the company as valuable contributors.
Thanks to these internship programs,
Newport News Shipbuilding and the HII
corporate office received the 2023 Top
Virginia Employers for Interns Award.

Back to contents 

In addition to operating our own apprenticeschools, we maintain effective partnerships
with colleges and universities, militarybases for transitioning Veterans, andregional community colleges to enable
us to recruit and hire engineering, IT, andother technical talent. Working closelywith state and local government leaders,
we have successfully facilitated local,
regional, and state-wide workforce

development and education initiatives
that include pre-K programs, high school
trades programs/talent development
labs, pre-hire trades/technical community
college programs, interns/co-ops withcolleges and universities, adult trades
programs, Veterans and military spouses
training programs, and unemployed/
underemployed training programs.

In 2023, Forbes named HII among America’s Best Large
Employers and America’s Best Employers for Women.
HII received the Gold HIRE Vets Medallion Award fromthe U.S. Department of Labor in November 2023.

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Disclosures

Back to contents Diversity and Inclusion
Fairness, respect and inclusion define
who we are at HII. This is reflected in our
Company’s values of integrity, safety,
respect, engagement, responsibility,and performance.

To further uphold these values, we have set
three diversity and inclusion sustainability
commitments:
1. Increase Representation of Womenand People of Color: We commit togood faith efforts to increase the total
representation of women and peopleof color across all levels of leadership in
accordance with our annual affirmative
action plan.
2. Increase Veteran Workforce: We
commit to increasing the hiring of
Veterans such that Veterans make up
20% of HII’s overall workforce by 2030.
3. Increase Recruiting from HBCUs: We
commit to increasing the percentage
of interns and graduates recruited from
HBCUs by 10% annually through 2030.
Our Code of Ethics and Business Conduct,
coupled with our dedicated diversity
and inclusion discussions, training andeducation, act as guiding principles for
all those working with and for HII. At
HII, we expect everyone to treat otherswith dignity and compassion. Eachteam member has the responsibility tocontribute to a sense of belonging andinclusivity in the workplace. We recognize
the competitive edge of a community thatembraces diverse skills, experience aswell as diverse backgrounds in terms ofgender, nationality, place of residence,
sex, ethnicity, religion, or any other factor
or any other categorization defined byfederal law. Our leaders harness thesedifferences and similarities within theirteams, perpetually fostering a culture ofcollaboration and inclusion.
INCLUSIVE HIRING PRACTICES

To support our diversity and inclusioncommitment, we continue to build ourdiverse talent pipeline. We actively
partner with HBCUs, science, technology,
engineering, and mathematics (STEM)

diversity programs, Veterans’ organizations
and organizations that support the hiringof individuals with disabilities. We are proudof our long heritage of hiring Veterans, aswell as our continued sponsorship in several
STEM diversity conferences, includingBlack Engineer of the Year Awards (BEYA),
Women of Color, Society of Hispanic
Professional Engineers (SHPE), and Societyof Asian Scientists and Engineers (SASE).
DIVERSITY AND INCLUSION LEADERSHIPWe shape our culture of diversity andinclusion from the top down and thebottom up. We are a signatory of the
CEO Action for Diversity and Inclusion, thelargest CEO-driven business commitment
to advancing diversity and inclusion in
the workplace. Our three divisions offer
leadership courses on diversity andinclusion topics, which creates awarenessof diversity and inclusion in the workplace.

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CREATING AN INCLUSIVE WORKPLACEEMPLOYEE RESOURCE GROUPSPart of our efforts to create an inclusive
work environment is our unconscious bias
training program which helps our employees
become aware of their unconscious
personal biases.

Led by executive sponsors and open to all
HII employees, employee resource groups(“ERGs”) provide opportunities for personal
and professional development, leadership,
mentoring, volunteerism, networking,and cultural enrichment at each of ourdivisions. Even more importantly, ERGs give
employees a voice—an essential part ofour diversity, equity and inclusion strategy.

At HII, we strive to build a workplace where
employees feel they belong, can bring theirwhole selves to work and can do their best
work every day. While diversity and inclusion
are important, it is the sense of belonging
and value that truly gives HII a competitiveedge in the marketplace. A sense of
belonging creates an engaged workforce.

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Recently, an ERG cross-functional teamhelped to shape our inclusive benefits andhealthcare options. This team collected
data and information to help identify gaps
in the Company’s current benefits andhealthcare plans. This goes beyond thehealthcare service options. The analysis
also considers provider diversity, locationof services, opening hours for services,and more. The goal is to align our
benefits and healthcare options with
our employees’ needs.

Because diverse teams can havea positive and powerful effect oninnovation, business and communities, we
purposefully create spaces where many
perspectives can thrive, such as bookclubs, heritage month events and diversity,
equity and inclusion panels. We also have
Diversity and Inclusion Councils that guideour diversity and inclusion efforts.

In February 2023, seven employees from Newport News Shipbuilding, Ingalls
Shipbuilding and Mission Technologies were recognized for their achievements
in STEM fields during the 37th annual BEYA STEM Conference. Read more.

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EMPLOYEE RESOURCE GROUPSNEWPORT NEWS SHIPBUILDINGINGALLS SHIPBUILDING
African American Shipbuilders Association(AASA)
Asian & Pacific Islander Shipbuilding
Association (APSA)
Generational Integration Focus Team (GIFT)
Hispanic Outreach and Leadership Alliance(HOLA)
Ingalls Shipbuilding Equality Alliance (ISEA)
Ingalls Shipbuilding Health Is a Priority (ISHIP)
Shipbuilding Women Engineers (SWE)

African American Shipbuilders Association(AASA)
Asian Shipbuilders Including All Nationalities(ASIAN)
Advancing New Careers Helping Our Resources
Succeed (ANCHORS)FitNNS
Generational Integration Focus Team (GIFT)
Hispanic Outreach and Leadership Alliance(HOLA)
Learning Expanding Achieving Results

Veterans Employee Resource Team (VERT)Networking (LEARN)

Women in Shipbuilding Enterprise (WiSE)

Shipbuilders of Huntington Ingalls Professionals
Network (SHIPS Network)

MISSION TECHNOLOGIESWomen in Business (WiB)
Veteran Alliance Network (VAN)
Visibility through Opportunity Inclusion
Community and Empowerment (VOICE)

Shipbuilders Together Realizing Inclusion,
Diversity and Equality (STRIDE)
Veteran Employee Resource Group (VERG)
Women in Shipbuilding Enterprise (WiSE)

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Supporting Employee Wellbeing
Our workforce wellbeing impacts ourbusiness success. We take pride in our
workforce and ensure that we offer
competitive benefits, a culture of inclusion,
job stability, and training and development
programs. We aim to provide a safe work
environment and tools to help foster
wellbeing. We recognize that withouta safe and healthy team, we cannot
achieve peak performance and meet
our customers’ needs.
All employees are eligible for healthinsurance, paid and unpaid leave, 401(k)plans, and life and disability/accident
insurance coverage. We also offer a variety
of benefits that allow our employees toselect the options that meet their needs,
including annual leave/paid time off, paid
holidays, flexible work arrangements,
telemedicine, parental leave and awellness program that includes physical,
mental, and financial wellness components.
We also fund the operation of Family

Health Centers near our two shipyards,
which provide a full range of medical, lab,pharmacy, dental, physical therapy, andvision services to our team members andtheir families.

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We recognize that part of wellbeing is financial security and family. The HII Scholarship Fund helps
fund a post-secondary college or technical/vocational degree or a pre-kindergarten school readinessprogram for the dependent children of HII employees. As of February 15, 2023, the fund has awarded
1,171 scholarships totaling over $3,000,000.

To provide our employees and theirfamilies with the care and support theyneed when they need it, we made ouronline benefits information more userfriendly based on focus group feedback,and we offer concierge services for cancer
and gender transition. These services
provide our employees with a place to go
to receive step-by-step guidance, insteadof having to sift through plans for hardto-find details. Additional communications
through our Be Well portal keep our
workforce informed about benefits andhealthy practices.

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Health and Safety
Our commitment to health and safety
extends throughout our organization.
Team members hold the responsibility
to ensure their safety and that of theircolleagues, bolstered by worker healthand safety task teams, production
supervisors and designated project
personnel. While safety remains acollective responsibility, our teamcollaborates with insurance companies
and trade organizations to mitigate
injuries and establish injury reduction
objectives for specific business units.
HEALTH AND SAFETY
MANAGEMENT SYSTEMS

Safety is paramount in our line of work,and at HII, it is everyone’s responsibility—and factored into incentives and bonuses.
Each division implements distinct healthand safety management systems,
tailored plans and protocols targeting
specific risks inherent to their division or

work-related environments. At Newport
News Shipbuilding and Ingalls Shipbuilding,a key component of our health and safety
program is the utilization of health andsafety task teams, which are comprised ofproduction and maintenance employees
and front-line managers whose goal is
to educate, engage, and empower ourworkforce toward a culture that strives toreduce injury, illness, and environmental
impacts. Our shipyard safety management
system is continuously assessed forcompliance and those assessments areused for continuous improvement.
All division safety protocols encompass
all individuals including employees andcontractors, irrespective of their physicalwork, location, trade, craft, employment
type, or support function. Our corporate
policies are available to HII employees.
In addition, our Supplier Code of Conduct
reinforces health and safety.

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In addition to comprehensive workrelated safety procedures, policies andprotocols, our employees receive trainingemphasizing the importance of avoiding
exposure to hazardous situations. Before
workers enter a job, work areas arereviewed to ensure that they are freefrom recognized hazards, or all required
hazard controls are in place—foremen
and craft employees document thisoccurrence. Our team members havethe responsibility and power to remove
themselves from hazardous situations andreport hazards immediately. Teams are
required to address health and safety risks
and hazards on the spot, and if necessary,
elevate issues that go past a specified
period of time to management.

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HEALTH AND SAFETY TRAINING

Safety training plays an integral role infostering HII’s overarching safety culture,
prompting every division to offer a rangeof training programs and educational
materials. Each division conducts safety
training sessions tailored to both generalsafety practices and job-specificrequirements. For example, at Newport
News Shipbuilding new hires undergo acomprehensive eight hour safety training
and then additional safety training
touchpoints at their 30 and 90 day
marks. Comprehensive records of each
employee’s training are maintained forauditing purposes and to ensure
the proper scheduling and completionof the necessary refresher courses.

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Frequent education and two-way
communication are critical to our healthand safety programs and management. As
such, HII deploys a variety of communication
tools to keep its employees up to date on
the latest health and safety information.
Employees can also connect with healthand safety professionals through a varietyof channels to discuss their concerns or
ask questions. Job safety analyses give
employees an opportunity to share thetasks, steps, hazards, and hazard controls
in their work and read what others
have shared.

We are proud of ourMission Technologies
division, which has
maintained historically
low injury rates ascompared to ourindustry’s averages, asreported by the Bureauof Labor Statistics. The
Company is proactive
and targets continuous
improvement initiatives
such as material handlinginjury reduction.

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Back to contents Community Engagement
The communities surrounding our operations
are the places where our teams live, raisefamilies and actively participate. The
relationship between our Company andcommunities dates back to our foundingdays and extends beyond economic
impact; it influences the social fabric andculture. We strengthen our company byinvesting not only in the wellbeing of ouremployees but also in the most pressing
needs of our communities. We arecommitted to being good stewards
and citizens and growing talent in theregions where we do business.
To these ends, we have made threecommunity engagement commitments:
1. Increase Education Giving:
We will target 40% of our total giving to
Education by 2030 while also prioritizing
the core areas of Community and
Veterans & Military.

2. Increase Employee Volunteerism:
We will make good faith efforts toincrease the number of employee
volunteers by 10% annually through2030.
3. Meals to Address Health and Hunger:
Focusing on the crisis of health andhunger, HII and our employees will
provide 100,000 meals annually to thosein our communities facing food andnutrition insecurity.
SUPPORTING EDUCATION IN OUR
COMMUNITIES AND SUPPORTING
OUR VETERANS

Our business thrives when our communities
thrive. Recognizing that our employees
reside here, HII has taken measures toactively involve employees in fostering
meaningful community support initiatives.
For example, at Ingalls Shipbuilding, aCommunity Partner Workshop was held

convening 50-plus partner agencies todiscuss community activities and impact.
Ingalls Shipbuilding also launched a“What do you care about?” campaign where
shipbuilders were asked about community
initiatives that are important to them. The
information obtained from this campaign
informed Ingalls Shipbuilding’s giving strategy
and employee volunteering initiatives.
Across our divisions, we sponsor scholarships
and competitions, visit classrooms andpartner with local organizations to engage
K-12 students in STEM. In 2023, Ingalls
Shipbuilding supported 26 STEM-related
initiatives in schools and educationalorganizations located in Mississippi andAlabama, including the Moss Point Career
and Technical Education Center. This
support continued into 2024, whereby$100,000 in grants was awarded to
24-STEM related initiatives.

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Ingalls Shipbuilding also partnered withAccelerateMS and the Jackson County
Economic Development Foundation tofacilitate the participation of students
from local career and technical training
programs in a welding competition.

Teacher Internship program facilitated by
SEEKnns. Shipbuilders mentor the students
through STEM activities, supporting
shipbuilding and repair careers, as wellas partaking in local career and technicaleducational programs.

Newport News Shipbuilding partneredwith the Hampton Roads Workforce
Council (HRWC) to create the Hampton
Roads Regional Workforce Training System(HRRWTS). This initiative strives to create
intentionality and uniformity among
training providers within a 100-mile radiusof Newport News Shipbuilding. This effort
is being supported by an $11M EDA Good
Jobs Challenge Grant and more than $20M
in investments by the Navy’s Submarine
Industrial Base office to grow and fill
the training pipelines in the community.
Newport News Shipbuilding also supports
SEEKnns, which offers unique experiences
for middle school students participatingin the Young Men Engineers and Girlswith Engineering Minds in Shipbuilding
programs. Newport News Shipbuilding also
engages educators through a Summer

We also help numerous organizations in
our communities make a difference in the
military community, including SEALKIDS,
the Bob Feller Act of Valor Foundation, theNaval Academy Foundation, the PacificFleet Submarine Museum, and the U.S.
Foundation for the Commemoration of theWWs-WWI Memorial.

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As the U.S. Armed Forces’ largest shipbuilder, we are committed to have aworkforce made up of 20% Veterans by 2030. We are working to continue tobuild that pipeline through a partnership with American Corporate Partners,
an organization that helps Veterans transition to the civilian workforce.

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PARTNERSHIPS THAT MAKE
GIVING PERSONAL

Guided by our workforce, we are proud tosupport organizations such as the UnitedWay, Special Olympics and Salvation Army,
as well as environmental clean-ups. We
focus on organizations and philanthropic
activities that address food and nutrition
insecurity through our partnerships withfood banks and food drives. All our divisions
support a variety of charities, philanthropic
organizations and community andenvironmental organizations, initiatives
and partnerships.
Below are a handful of examples of what
we have supported in the past year:• In 2023, Newport News Shipbuilding
shipbuilders used an online platform to
make donations, discover opportunities
to volunteer, and see the causes that
their colleagues are supporting. This
includes Newport News Shipbuilding’s
Holiday Food Drive, which resulted in over
48,000 meals for the Virginia Peninsula
Foodbank. We also partnered with Serve

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Disclosures

the City in Newport News to conduct a
series of neighborhood clean-ups in thesurrounding community.

• For eight hours each year, HII corporate
employees similarly give back to causesin the Hampton Roads community, frompacking food at the Virginia Peninsula
Foodbank to preparing garden beds
for Versability.

• Ingalls Shipbuilding shipbuilders got

Back to contents • Mission Technologies’ fourth annual
Global Day of Caring saw more than 400
employees and their family members
uniting to participate in 34 community
service projects across 14 states. Employees
prepared care packages for families in needin New Jersey, built beds for foster care at
the Agape Ranch in Texas, and helped heal
the land at the Loko i’a Paaiau fishpond in
Hawaii. Other examples include supporting

the American Heart Association,
American Cancer Society, Boys andGirls Club, local food drives, local shelter
support, and much more.
On Mission Technologies' Global Day
of Caring, 400 employees and their family
members participated in 34 community
service projects across 14 states.

creative, donating kitchen supplies froma retired ship galley to George County
Schools’ culinary education program.
Meanwhile, the Ingalls Resource Recovery
initiative has increased its community
efforts to donate scrap materials to
local welding programs, nonprofit
organizations, and schools. Additionally,
Ingalls Shipbuilding donated eight pallets
of lockers and cabinets to Magnolia
Springs Assembly of God, and 55 laptops
for students at Jefferson Davis County
School District and CLIMB Community
Development Corporation.

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PROTECTINGOURRESOURCES

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Our Environmental Impact at A Glance

Our key facilities are
ISO 14001 certified, which
formally acknowledges
our robust team andenvironmental strategy.

Currently building nuclearpowered naval vessels
in the United States, werecognize the importantrole of carbon-freenuclear power in achieving
a reduced-carbon future.

We are exploringalternative energy
sources at key sites
and facilities.

Enhanced ourenvironmental data andinformation disclosures.

“We strive to intentionally and deliberately sustain a culture and an environment where
shipbuilders are actively involved in these efforts and embrace their important role inprotecting our natural resources for future generations.”
Eric Crooker
Vice President, Infrastructure and Sustainability, Ingalls Shipbuilding2024 Sustainability Report47

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Our Environmental Management System
As the nation’s largest military
shipbuilder, the consideration of potential
environmental impacts is no small
matter. Heavy construction and heavy
resource and electricity use are
inherent in our business.
We take responsibility for the environmental
impact of our operations and makeenvironmental management a priority,
including how we design and deliver our
products and services, how we operate
our facilities and how we work with our
employees, suppliers and communities. We
consistently see the impacts of our efforts,from energy consumption to our carbon
footprint, and we are constantly striving
for better. To this end, we have made thefollowing commitment to environmental
sustainability:

1. Roadmap to reduce GHG Emissions:
By the end of 2024, we will develop aroadmap to exceed a 30% reduction in
Scope 1 and 2 GHG emissions based on
the 2022 baseline. We have estimatedour 2022 baseline of Scope 1 and 2 GHG
emissions to be 323 thousand metrictons of CO₂eq.
High performance starts with a system
consisting of processes for working
together, measuring impact and constantly
striving to get better. This approach guides
all aspects of our business at HII, and we
consider it the core of our environmental
management. Underlying these systems
and structures is a commitment toearning the confidence and trust of
regulators, employees, customers and thecommunities we serve.

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STRUCTURE, RESPONSIBILITY AND
ACCOUNTABILITY

From air emissions to utility operations
and inspection results, our proactive
Environmental Management System(EMS) guides our mitigation efforts. Bothgeneral training and job-specific training on
environmental awareness are provided. For
example, our teams managing hazardous
waste are trained on how to handle such
waste appropriately and safely.
As dedicated groups at our facilities drive
improvements, multiple internal andexternal audits and inspections keep us
accountable and ongoing training andeducation keep our staff and suppliers
engaged. We keep our contractors informed
about our EMS and other expectations
through our division-specific environmental
health and safety contractor handbooks.
ENVIRONMENTAL COMPLIANCE

With recognition at the highest levels, weare proud of our regulatory compliancerecord in 2023 and consider it a springboard
for what is next across environmental

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Disclosuresand risk management. As part of ourenvironmental compliance management
strategy, our team evaluates and reviews
compliance with all required monitoring
and recordkeeping tasks on a regular basis.
Successful environmental compliancenot only requires meeting compliancerequirements, but also entails evaluatingprocesses for environmental management,such as waste minimization and recycling
efforts. Throughout 2023, our divisions
reviewed the compliance management
methods. Our compliance teams
incorporate a risk-based approach andconduct mock inspections and peer
reviews into specific environmental
compliance activities. Additionally, HII
proactively incorporates compliance items
throughout a product's life cycle, fromproduct design to facility management.
Compliance auditing is done both internally(including division- and corporate-levelinternal audits) and externally. If errors
are identified, our teams are equipped
to manage on-the-spot corrections.

Back to contents Additionally, all corrections are documented
and reviewed by the broader team aspart of our knowledge-sharing efforts.
We have also adopted a proactive
approach to earning the trust of ourregulators, aiming to cultivate strong
and cooperative relationships with them.
This involves maintaining consistent andopen communication channels withvarious regulatory bodies such as the
U.S. Environmental Protection Agency,
the different states’ Departments ofEnvironmental Quality, local public treatment
facilities and the U.S. Coast Guard.
Finally, we have been focusing on theenvironmental justice implications ofregulations such as permitting, which
impact both our business and the broader
community. This includes notifying industry
partners when permit changes may have anenvironmental justice impact and efforts totrain local communities in the process.

As a testament to our robust environmental
compliance programs and systems, ourdivisions have received recognition for
their adherence to regulatory standards
and even exceeding regulatory standards.
For example, Newport News Shipbuilding
has been named an Extraordinary
Environmental Enterprise Level 4
participant, the highest program level,
and was awarded the Hampton Roads
Sanitation District Platinum and DiamandAwards for compliance excellence. Ingalls
Shipbuilding received the Mississippi
Department of Environmental Quality
enHance Environmental Leader Award.

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Energy and Greenhouse Gas Emissions Management
From the power that fuels our shipyards
and ships, to the emissions and wastethat go out, every metric matters andcontinuous improvement is a must. HIIis actively committed to being a smart
energy consumer and a responsible
environmental steward.
ENERGY MANAGEMENT

The energy efficiency programs andtechnologies throughout our operations
help us uphold our responsibilities to ourcommunities, customers, employees,
stakeholders, and investors. They also
make financial and business sense.

We track our energy use. For example,
Ingalls Shipbuilding uses EnergyCAP utility
monitoring software to track and manage
their energy usage. This data is used to
optimize systems, from HVAC to lighting,and to reduce our costs and bring in moreenergy-efficient infrastructure: including
new roofs, AC units, LED replacements,
solar energy, and electric-powered
mobile equipment.
MAKING WHAT WE BUILD MORE
ENERGY-EFFICIENT

The ships deployed by the U.S. Navyworldwide are essential to our national
security. They are also consumers ofnatural resources. For shipbuilders andtechnology developers, such as HII,
there should be a fine balance between
achieving a strategic, tactical andprotective advantage, and minimizing
environmental impact.

HII is an established leader in leveraging
other energy sources for defense. As oneof only two companies currently building
nuclear-powered naval vessels in the
U.S., we recognize the important role ofcarbon-free nuclear power in achieving a
reduced-carbon future.
Finally, we are actively shaping a moresustainable future. The next generationof weapons and sensors technology, suchas lasers, railguns and small unmanned
platforms, require increased levels ofelectricity generation and thermal cooling.
Our engineers are exploring ways toconvert fuel efficiently into electrical orthermal energy.

2023 HIGHLIGHTSAT OUR SHIPYARDS
Ingalls Shipbuilding is exploring thepotential of microgrids for energy storage
and peak shaving. It also brings electricvehicles into the mix. One-third of the
shipyard's small, motorized vehicles (carts)
are now electric.
Newport News Shipbuilding promotes
leak identification in all of its utility
systems by encouraging its employees
to immediately notify its facilities repair
team when they find a leak. Once the leakis reported, it is documented and tracked
to completion. In the compressed air
system alone, the savings from the energy
required to compress the replacement air
being lost through the leak are calculated
and documented. In 2023, 143 leaks were
repaired, resulting in annual savingsof approximately 5.6 million kWh. The
associated GHG reductions are estimatedto be 1,633 tonnes CO₂e.

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GHG EMISSIONS AND THE CLIMATEAs a company in an energy-intensive
sector, we recognize the complexity ofclimate impact and management. Ourfootprint involves GHG emissions fromthe energy we purchase for our offices
and facilities and the energy and power
needed to bend and shape steel to ensure
our ships and products are safe and of
the highest quality. HII strives to manage
and mitigate the impact of our operations
through a variety of energy and GHG
emission initiatives.
To ensure we move forward in the mostinformed, complete and efficient way
possible, we track, document, and analyze
our GHG emissions. HII accounts for seven
GHGs: CO₂, CH₄, N₂O and the fluorinatedgases HFC, PCF, SF₆, and NF₃.

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To ensure confidence in our data, we review
our internal protocols for data collection
and management. We also provide our
employees with guidance and education
on how to ensure that our data aremeasurable, credible, and verifiable.
Guided by our expanded sustainability
office, we have taken proactive steps tostrengthen and understand our baseline
data, specifically our Scope 1 and 2 GHG
emissions. We have completed a gap
assessment and are gathering information
for future planning, and our insights are
already coming to life in our shipyards.
In 2023, we made the commitment thatby the end of 2024, we will develop aroadmap to exceed a 30% reduction in
Scope 1 and 2 GHG emissions based on
the 2022 baseline.

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METRIC

UNIT

2022

2023

Scope 1 Emissions

Metric tons CO₂e

101,045

82,805

Scope 2 Emissions – location based

Metric tons CO₂e

222,069

224,349

Metric tons CO₂e /USD $revenue

0.00003027

0.00002671

Scope 1 and 2 intensity ratio

Due to factors such as company GHG data reporting cycles; the time it takes for vendors to source, aggregate and analyze data; and vendor data quality
checks, complete emissions data sets are often unavailable by the publication date of this Report.
HII has enhanced our methodology and data collection practices for environmental data including Scope 1 and Scope 2 emissions to improve data quality. Ourdata reflects operational greenhouse gas emissions from our three divisions for the calendar years 2022 and 2023. Sites that are not included in this metric arethose that are not yet operational, such as those under initial construction, or those over which we do not maintain operational control, including government-run
or fully serviced leased facilities. The disclosed combined emissions for Scope 1 and 2 are based on utility data, derived by using the location-based method
outlined by the Greenhouse Gas (GHG) Protocol for Scope 2.

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Back to contents Protecting and Preserving Water
As one of the nation’s largest manufacturers,
with thousands of employees working indozens of facilities, and whose primary
products are ships, water is vital to ourwork. As this shared resource powers ourbusiness, we are safeguarding it for ourcommunities and our future.
TARGETED IMPROVEMENTS
MAKE AN IMPACT

Both Ingalls Shipbuilding and Newport
News Shipbuilding use monitoring
and control systems to track water
consumption and potential leaks. These

detailed measurement and monitoring
systems are vital for managing ourresources effectively and reducing waterleaks and minimizing their negative impact.
Our Ingalls Shipbuilding facility addedrolling covers to protect our employees
from the elements and shield our products
from weather which leads to reduced
stormwater runoff. This resulted in
reductions of about 51.8% and 67.2%,
based on a 2014 baseline.

ARTIFICIAL REEF PROJECT
Newport News Shipbuilding partnered with the Virginia Marine Resource Commission to refurbish
and donate an old dry dock caisson gate. This outdated piece of equipment, which could have been
discarded as waste, gained new life as an artificial reef in Chesapeake Bay.

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Efficient, Collaborative Waste Management
Not only is proactive waste management
the right thing to do for our planet andour communities, but it also makes
good business sense as it improves ourbusiness performance through the lean,
improved processes we use in the related
activities. For a company of our size,
scope and type of operations, waste
management is a Herculean task, but
our teams take on the challenge withaccountability, creativity, determination,and commitment.

MANAGING WASTE AT OUR FACILITIESTo manage our environmental impact
across our operations, we perform internaland external due diligence for waste
vendors. This involves reviewing emerging
contaminants and waste risk based on
an extensive set of criteria. Meanwhile,when we faced a shortfall of vendors to
help us manage hazardous waste, HII
employees worked to identify alternative
disposal options.

SOAR. Stop pollution. Obey rules. Always improve.
Reduce waste. The simple acronym SOAR helps us
keep environmental management top of mind.

Wherever economically possible andoperationally feasible, we implement
recycling and reuse programs across ourdivisions. These programs make an impact
across several aspects of sustainability:
conserving natural resources, savingenergy reducing GHG emissions, andkeeping limited landfill space available
for the future. We continually evaluate our
production processes and waste streams,
exploring the use of less toxic materials
whenever possible. When feasible, we
divert waste from traditional disposal anddestruction to beneficial reuse.

Both time and metal are precious
resources. For tasks such as bending
metal and soldering boards, “digital twin”
software tools make it easier to discover
more efficient ways of doing things, andall three of our divisions are already seeing
them make an impact.

In tandem with our community initiatives,
volunteer opportunities to support
environmental causes occur throughout
the year. For example, Ingalls Shipbuilding’s
Asian and Pacific Islander Shipbuilding
Association employee resource group
together with Mississippi Coastal Cleanup,
had nearly 200 participants take part ina beach cleanup.

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DISCLOSURES

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Huntington Ingalls Industries, Inc. has reported the information cited in this GRI content index for the period January 1, 2023, through December 31, 2023, with reference to the GRI Standards.

HII GRI INDEXGRI STANDARD

Disclosures

GRI 1: Foundation 2021

DISCLOSURESANSWER, CROSS-REFERENCE, OMISSIONS, AND EXPLANATIONSGRI 2-1

Organizational details

About this Report

GRI 2-2

Entities included in the organization’s sustainability reporting

About this Report

GRI 2-3

Reporting period, frequency and contact point

About this Report

GRI 2-4

Restatements of information

Total learning hours were restated due to a publication error in previous year’s Report.

GRI 2-5External assuranceThis Report has not been externally assured.

General Disclosures

About HIIGRI 2-6

Activities, value chain and other business relationships

Supply Chain Management
Product Quality and Safety

GRI 2-7

Employees

EEO-1 Report
2023 10-K (pg. 8- 10)

Governance
GRI 2-9

Governance structure and composition

Corporate Governance

GRI 2-10

Nomination and selection of the highest governance body2024 Proxy Statement

GRI 2-11

Chair of the highest governance body

The Board has a non-executive Chairman.

GRI 2-12

Role of the highest governance body in overseeing the management of
impacts

2024 Proxy Statement2024 Sustainability Report55

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HII GRI INDEXGRI STANDARDDISCLOSURESANSWER, CROSS-REFERENCE, OMISSIONS, AND EXPLANATIONSGRI 2-13

Delegation of responsibility for managing impacts

Corporate Governance

GRI 2-14

Role of the highest governance body in sustainability reporting

Corporate Governance

GRI 2-15

Conflicts of interest

2024 Proxy Statement

GRI 2-16

Communication of critical concerns

HII Code of Ethics and Business Conduct

GRI 2-17

Collective knowledge of the highest governance body2024 Proxy Statement

GRI 2-18

Evaluation of the performance of the highest governance body2024 Proxy Statement

GRI 2-19

Remuneration policies

2024 Proxy Statement

GRI 2-20

Process to determine remuneration

2024 Proxy Statement

GRI 2-21

Annual total compensation ratio

2024 Proxy Statement

Strategy, Policies, and Practices
GRI 2-22

Statement on sustainable development strategy

Our Approach to Impact
HII Code of Ethics and Business Conduct

GRI 2-23

Policy commitments

Policy commitments generally apply to all organizational activities and business relationships. Policy commitments arecommunicated to workers, business partners and other relevant parties via electronic communications, in writing, and throughformal and informal oral communications.

GRI 2-24

Embedding policy commitments

Securing our Business

GRI 2-25

Processes to remediate negative impacts

Ethical Conduct

2024 Sustainability Report56

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HII GRI INDEXGRI STANDARDDISCLOSURESANSWER, CROSS-REFERENCE, OMISSIONS, AND EXPLANATIONSGRI 2-26

Mechanisms for seeking advice and raising concerns

HII Code of Ethics and Business Conduct

GRI 2-27

Compliance with laws and regulations

HII adheres to all legal and regulatory requirements. Any significant non-compliance incidents would be reported in our 2023 10-K.

GRI 2-28

Membership associations

2023 10-K (pg. 1-6)

GRI 2-29

Approach to stakeholder engagement

Our Approach to Impact

GRI 2-30

Collective bargaining agreements

2023 10-K (pg. 10)

GRI 3: Material Topics (2021)
GRI 3-1

Process to determine material topics

Our Approach to Impact

GRI 3-2

List of material topics

Our Approach to Impact

GRI 3-3Management of material topics

Our Approach to Impact

SECURING OUR BUSINESSGRI 205: Anti-Corruption (2016)
GRI 205-1

Operations assessed for risks related to corruption

Ethical Conduct

GRI 205-2

Communication and training about anti-corruption policies andprocedures

Ethical Conduct

GRI 205-3

Confirmed incidents of corruption and actions taken

Ethical Conduct

2024 Sustainability Report57

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HII GRI INDEXGRI STANDARDDISCLOSURESANSWER, CROSS-REFERENCE, OMISSIONS, AND EXPLANATIONSGRI 408: Child Labor (2016)
Supply Chain Management
GRI 408-1

Operations and suppliers at significant risk for incidents of child labor

HII Code of Ethics and Business Conduct
All human beings should be treated with dignity and respect. Conduct that is specifically prohibited or restricted by applicablelaws, regulations and policies, such as the use of child labor and trafficking in humans should be reported to the Law Department
immediately.

GRI 409: Forced or Compulsory Labor (2016)
Supply Chain Management
GRI 409-1

Operations and suppliers at significant risk for incidents of forced orcompulsory labor

HII Code of Ethics and Business Conduct
All human beings should be treated with dignity and respect. Conduct that is specifically prohibited or restricted by applicablelaws, regulations and policies, such as the use of child labor and trafficking in humans should be reported to the Law Department
immediately.

GRI 412: Human Rights (2016)
Ethical Conduct
GRI 412-2

Employee training on human rights policies or procedures

Supply Chain Management
HII Code of Ethics and Business Conduct

2024 Sustainability Report58

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HII GRI INDEXGRI STANDARDDISCLOSURESANSWER, CROSS-REFERENCE, OMISSIONS, AND EXPLANATIONSGRI 415: Public Policy (2016)
GRI 415-1

Political contributions

Lobbying and Political Activities
Political Engagement Disclosure

BUILDING OUR COMMUNITYGRI 405: Diversity and Equal Opportunity (2016)2024 Proxy Statement
GRI 405-1

Diversity of governance bodies and employees

EEO-1 Report
Performance Data Table

GRI 405-2

Ratio of basic salary and remuneration of women to men

2024 Proxy Statement

GRI 401: Employment (2016)
GRI 401-1

New employee hires and employee turnover

GRI 401-2

Benefits provided to full-time employees that are not provided totemporary or part-time employees

GRI 401-3

Parental leave

Providing Jobs and Opportunities
2023 10-K (pg. 8-10)
Supporting Employee Wellbeing
2023 10-K (pg. 10)
Supporting Employee Wellbeing

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HII GRI INDEXGRI STANDARDDISCLOSURESANSWER, CROSS-REFERENCE, OMISSIONS, AND EXPLANATIONSGRI 404: Training and Education (2016)
Providing Jobs and Opportunities

GRI 404-1

Average hours of training per year per employee

GRI 404-2

Programs for upgrading employee skills and transition assistanceprograms

Providing Jobs and Opportunities

GRI 404-3

Percentage of employees receiving regular performance and careerdevelopment reviews

Performance Data Table

Performance Data Table

GRI 403: Occupational Health and Safety (2018)
Health and Safety

GRI 403-1

Occupational health and safety management system

GRI 403-2

Hazard identification, risk assessment and incident investigation

Health and Safety

GRI 403-3

Occupational health services

Health and Safety

GRI 403-4

Worker participation, consultation, and communication on occupational
health and safety

Health and Safety

GRI 403-5

Worker training on occupational health and safety

Health and Safety

GRI 403-6

Promotion of worker health2023 10-K (pg. 9)

Health and Safety2023 10-K (pg. 9)2024 Sustainability Report60

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HII GRI INDEXGRI STANDARDDISCLOSURESANSWER, CROSS-REFERENCE, OMISSIONS, AND EXPLANATIONSGRI 403-7

Prevention and mitigation of occupational health and safety impacts
linked by business relationships

GRI 403-8

Workers covered by an occupational health and safety management
systemHealth and Safety

GRI 403-9

Work-related injuries

2023 10-K (pg. 9)

Health and Safety2023 10-K (pg. 9)

GRI 413: Local Communities (2016)
GRI 413-1

Operations with local community engagement, impact assessments anddevelopment programs

Community Engagement

PROTECTING OUR RESOURCES
GRI 302: Energy (2016)
GRI 302-1

Energy consumption within the organization

Performance Data Table

GRI 302-3

Energy intensity

Performance Data Table

GRI 305: Emissions (2016)
GRI 305-1

Direct (Scope 1) GHG emissions

Performance Data Table

GRI 305-2

Energy indirect (Scope 2) GHG emissions

Performance Data Table

GRI 305-4

GHG emissions intensity

Performance Data Table

GRI 306: Waste (2020)
GRI 306-2

Management of significant waste-related impacts

Efficient, Collaborative Waste Management2024 Sustainability Report61

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SUSTAINABILITY ACCOUNTING STANDARDS BOARD (SASB) DISCLOSURE
AEROSPACE & DEFENSE STANDARD
SASB CODE

SASB DESCRIPTIONSHII 2023 DISCLOSURE

RT-AE-130a.1(1) Total energy consumed, (2) Percentage
grid electricity and (3) percentage renewable

Performance Data Table

RT-AE-150a.1

Amount of hazardous waste generated,
Percentage recycled

Performance Data Table

RT-AE-150a.2

Number and aggregate quantity ofreportable spills, quantity recovered(1) 0 reportable spills (following CERCLA requirements), (2) 0 quantities recovered and long-term remediation activities

RT-AE-230a.1(1) Number of data breaches, (2) percentage
involving confidential information

Huntington Ingalls Industries considers this information to be confidential.

RT-AE-230a.2

Description of approach to identifying andaddressing data security risks in (1) entity
operations and (2) products

Our cybersecurity program includes processes to identify, assess and manage material risks from cybersecurity threats. These processes utilize a riskbased approach and include written cybersecurity and information technology policies and procedures, including a cybersecurity incident response plan.
For more information, see Data and Cybersecurity in this report and our 2023 Form 10-K.

RT-AE-250a.1

Number of recalls issued; total units recalled(1) Zero product-related safety recalls issued, (2) Zero total number of units recalled during the reporting period, (3) Zero voluntary recalls and 0% involuntary
recalls issued.

RT-AE-250a.2

Number of counterfeit parts detected;
percentage avoided

Huntington Ingalls Industries considers this information to be confidential.

RT-AE-250a.3

Number of Airworthiness Directives received,
total units affected

Not applicable

RT-AE-250a.4

Total amount of monetary losses as a result oflegal proceedings associated with product safety

Not applicable

Revenue from alternating energy-related
products

Nuclear energy, although sometimes not considered a renewable fuel, is critical to a reduced-carbon future. Nuclear energy is highly technical, heavily
regulated and hard to generate. In fact, HII is one of only two companies currently building nuclear-powered vessels in the United States. The advantage isa nuclear propulsion system that uses zero fossil fuels to propel the platform, and power electrical, steam and cooling systems. A conventionally powered
aircraft carrier, similar in specs to the CVN 78 Ford class will result in millions of tonnes of GHG emissions over a 50-year service life. With nuclear power, there
are no direct GHG emissions in propelling 100,000 tons of steel through the water at fast speeds. Nuclear energy gives our customers strategic, tactical andprotective advantages, without giving our planet the GHG emissions of a conventionally powered platform.

RT-AE-410a.1

2024 Sustainability Report62

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SUSTAINABILITY ACCOUNTING STANDARDS BOARD (SASB) DISCLOSURE
SASB CODE

SASB DESCRIPTIONSHII 2023 DISCLOSURE
Our customers’ requirements regarding fuel economy and GHG emissions are increasingly important. Simply put, fuel economy shapes a platform’s maximum
endurance at sea. HII builds naval platforms with propulsion systems of 60 days to unlimited endurance (with refueling after 25 years). Our products’ high-level
endurance capabilities give our customers strategic, tactical and protective advantages second to none. For instance, the combined diesel and gas turbine
hybrid drive propulsion system in use in the LHA 6 America class results in approximately 25,000 less gallons of fuel consumption per day than the LHD 1 Wasp
class. Over the service life of the ship, that amounts to about 18 million less metric tons of GHG emissions. Each LHA 6 class ship that replaces a large deck
predecessor results in more capabilities for our customers and less GHG emissions to the planet.
Nuclear energy, although sometimes not considered a renewable fuel, is critical to a reduced-carbon future. Nuclear energy is highly technical, heavily
regulated and hard to generate. In fact, HII is one of only two companies currently building nuclear-powered vessels in the United States. The advantage isa nuclear propulsion system that uses zero fossil fuels to propel the platform, and power electrical, steam and cooling systems. A conventionally powered
aircraft carrier, similar in specs to the CVN 78 Ford class will result in millions of tonnes of GHG emissions over a 50-year service life. With nuclear power, there
are no direct GHG emissions in propelling 100,000 tons of steel through the water at fast speeds. Nuclear energy gives our customers strategic, tactical andprotective advantages, without giving our planet the GHG emissions of a conventionally powered platform.

RT-AE-410a.2

Description of approach and discussionof strategy to address fuel economy andgreenhouse gas (GHG) emissions of productsElectrical-generating or thermal-cooling requirements for naval platforms are also increasing for powering the next generation of weapons and sensors
technology, such as lasers, railguns and small unmanned platforms. Energy efficiency is part of that equation. The efficient conversion of fuel into electrical orthermal energy starts with our engineering, utilizing efficient gas turbine generators and high-quality and efficient system components, built with quality by ourcraftsmen, who are unmatched in abilities and experience and checked against design standards, both internally and by our customers.
Newport News Shipbuilding is the sole designer, builder and refueler of U.S. Navy aircraft carriers and one of two providers of U.S. Navy submarines. We build
the most advanced ships in the world using our expertise in nuclear propulsion, naval design and manufacturing. Newport News Shipbuilding converted the
Floating Test Steam Facility, Nancy Lee, from fuel oil number 6 to natural gas. This conversion saves approximately 37 tons of particulate matter, 500 tons ofsulfur dioxide, 100 tons of nitrogen oxides, 16,000 tons of greenhouse gas (predominantly CO₂) per Refueling Complex Overhaul (RCOH) evolution.
HII has strategized GHG reductions and addressed fuel economy through an economic and business analysis benefit. Neutral economic and environmental
opportunities have achieved long-term performance results for our goals and policies. HII is committed to maintaining a healthy environment for its employees
and for the members of our communities. Accordingly, it is the Company’s policy to comply with all applicable environmental laws and regulations andminimize environmental risks, emissions to the air and water, and waste generation. The company establishes environmental objectives to support ourcommitment to continual improvement and pollution prevention.

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SUSTAINABILITY ACCOUNTING STANDARDS BOARD (SASB) DISCLOSURE
SASB CODE

SASB DESCRIPTIONSHII 2023 DISCLOSURE
Many businesses, including those in the aerospace and defense industry, procure raw materials made of critical minerals that can become scarce or more
expensive due to limited supply, political sanctions/actions and increased demand.
HII sources critical materials responsibly with consideration given to their contractual and regulatory requirements. Many of the raw products are used in
manufacturing larger assemblies and are needed early in the execution of the Company’s contracts. HII manages supply chain risk by purchasing criticalmaterials on an advanced-planning contract ahead of the manufacturing schedule. This method ensures the availability of products to support program
schedules and reduce the risk of delays in manufacturing. The volatile nature of the market for these critical minerals can cause price fluctuation for HII and
our supply chain. Long-term ordering agreements are in place for these commodities to achieve cost savings and stabilize the supply chain. HII may alsoachieve cost savings by purchasing higher quantities of materials. A quantity discount is a unit price savings that suppliers offer for purchasing higher quantities
of material. Due to the large quantities purchased, HII may have excess material in its inventory system. HII recycles material as much as possible through acontract transfer process to further reduce risks for replenishment as well as cost savings that may be realized when considering escalation rates and otherexternal factors. The method described above reduces the supply chain risks associated with purchasing critical minerals.

RT-AE-440a.1

Description of the management of risks
associated with the use of critical materials

RT-AE-510a.1

Total amount of monetary losses as a result oflegal proceedings associated with incidents ofcorruption, bribery, and/or illicit international
trade

Huntington Ingalls Industries considers this information to be confidential.

RT-AE-510a.2

Revenue from countries ranked in the “E”
or “F” Band of Transparency International’s
Governance Defense Anti-Corruption Index

Huntington Ingalls Industries considers this information to be confidential.

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SUSTAINABILITY ACCOUNTING STANDARDS BOARD (SASB) DISCLOSURE
SASB CODE

RT-AE-510a.3

SASB DESCRIPTIONS

Discussion of processes to manage businessethics risks throughout the value chain

HII 2023 DISCLOSURE
Always doing the right thing is an essential belief at HII. Our Code of Ethics and Business Conduct provides a set of core values, standards and behaviors thatguide our employees’ commitment to the highest ethical standards. It is a statement of our commitment to integrity and high ethical standards in all that we
do at HII, defining what we expect from our officers, Directors and employees as they perform their jobs. Our employees are encouraged to refer to the Codeof Ethics and Business Conduct when facing ethical dilemmas. Other resources, training and tools are provided by the Ethics Office and our Business Conduct
Officers and Representatives to promote ethics awareness. Additionally, our OpenLine offers an anonymous and confidential means to voice concerns orreport a suspected violation of our Code of Ethics and Business Conduct, Company policy or the law without fear of retaliation or coercion. HII has detailed
controls in its procurement and purchasing process. Central among these controls is the involvement of a dedicated procurement department within eachdivision, the Supply Chain Management Department, in the establishment and monitoring of supplier relationships. Under HII’s Supply Chain Management
Procedure, when materials and/or services are required to be purchased from external (non-HII) sources in support of Company operations and/or
production schedules, the Supply Chain Management Department has the sole responsibility to establish and manage the external contractual relationship.
The procurement process is also subject to regular and extensive internal and external audits. Our procurement process is audited annually by the Internal
Audit Department. It is also subject to audits by external auditors as well as government auditors such as the U.S. Navy’s Supervisor of Shipbuilding. As a U.S.
government contractor, we understand the need to ensure that our suppliers are conducting business in an ethical manner. When selecting suppliers, we
carefully consider not only each supplier’s performance but also their reputation for ethical practices. We apply an extensive due diligence screening process
to each of our suppliers, including checks on their beneficial owners. Any suppliers that present themselves as high risk from a corruption standpoint will be
subject to additional review by the Law Department. Specific due diligence procedures are developed by each division, depending on the levels and typesof risks presented by their own suppliers. Each division is also responsible for establishing a process for an annual review of its active suppliers. HII expects all
its suppliers, regardless of the contract price or the frequency of interaction with them, to conduct business in a manner consistent with the Supplier Code of
Conduct. HII backs up this expectation with a clause in its contractual terms and conditions that states, “In the event of a violation of any of the expectations
set forth in the Supplier Code of Conduct, [HII] may pursue corrective actions to remedy the situation, up to and including termination of this [contract].”
HII’s Supplier Code of Conduct delineates a set of high ethical standards for the conduct of our suppliers. At a minimum, we expect our suppliers to maintainfull compliance with all laws and regulations applicable to their businesses. As part of the onboarding process, HII requires that all suppliers have adequate
anti-bribery and corruption policies in place to prevent and detect misconduct. Such policies and procedures must cover gift and business courtesies, conflictsof interest, and whistleblower protections. The Supplier Code of Conduct makes clear that HII’s suppliers are prohibited from offering or making any improper
payments of money or anything of value to government officials, political parties, candidates for public office, or other persons. This includes a prohibition on
facilitating payments intended to expedite or ensure performance of a routine government action such as obtaining a visa or customs clearance. To ensurecompliance with HII’s anti-corruption program and applicable anti-bribery and corruption laws, we take active steps to assess the conduct of our suppliers,
including when there is a significant change in the business relationship.

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SUSTAINABILITY ACCOUNTING STANDARDS BOARD (SASB) DISCLOSURE
SASB CODE

SASB DESCRIPTIONSHII 2023 DISCLOSURE
HII is America’s largest military shipbuilding company, and our shipbuilding divisions’ sales represent the majority of our sales. Each ship requires several yearsof construction, with key milestones occurring during the construction process. The following operational achievements were recorded in 2023:
Ingalls Shipbuilding
•
•
•
•
•
•
•
•

Acceptance Trial, Delivery and Sailaway for amphibious transport dock Fort Lauderdale (LPD 28)
Christening of amphibious transport dock Richard M. McCool Jr. (LPD 29)
Sailaway and Commissioning of guided missile destroyer Frank E. Petersen Jr. (DDG 121)
Combined Alpha/Bravo Trial, Acceptance Trial and Delivery of guided missile destroyer Lenah Sutcliffe Higbee (DDG 123)
Christening and Alpha Trial of the first Flight III Arleigh Burke-class guided missile destroyer Jack H. Lucas (DDG 125)
Launched and christened amphibious transport dock Bougainville (LHA 8) and guided missile destroyer Ted Stevens (LPD 29)
Authenticated the keel of amphibious assault ship Fallujah (LHA 9) and amphibious transport dock Pittsburgh (LPD 30)
Authenticated the keel of guided missile destroyers Jeremiah Denton (129) and George M. Neal (DDG 131)

Newport News Shipbuilding

RT-AE-000.A

Production by reportable segment

•
•
•
•
•
•

Redelivered USS George Washington (CVN 73) to the U.S. Navy.
Christened Massachusetts (SSN 798).
Authenticated the keel for Oklahoma (SSN 800).
Marked the first meal served aboard New Jersey (SSN 796).
Opened The Newport News Shipbuilding Norfolk Campus.
Award with a drive-in ceremony at the Hampton Roads Convention Center on Sept. 16, 2023.

Mission Technologies
Mission Technologies develops integrated solutions that enable today’s connected, all-domain force. Capabilities include C5ISR systems and operations; theapplication of AI and machine learning to battlefield decisions; defensive and offensive cyberspace strategies and EW; unmanned autonomous systems; LVC
solutions; fleet modernization; and critical nuclear operations.
In 2023, Mission Technologies booked $5.5 billion of contract wins, including our two biggest contracts ever: the $1.3 billion USAFRICOM PRESS contract and the$1.4 billion NSIN J-NEEO recompete. We also continued to support warfighter readiness across the division. Here a few examples:
•
•
•
•
•
•

RT-AE-000.B

Number of employees

We began integrating Minotaur software products into maritime platforms for the U.S. Navy, Marine Corps and Coast Guard.
We launched SABERHUNT, a prototype kit for cyber threat hunting.
We supported the Large Scale Exercise, a global exercise for more than 25,000 sailors and Marines.
We sold the first two REMUS 620 UUVs and were awarded a contract to start building small UUVs for the Navy’s Lionfish program.
We were awarded the Navy’s Integrated Training Systems Installation and Sustainment (ITSIS) contract.
We entered into a strategic agreement with Babcock International to support the AUKUS initiative in Australia and the United Kingdom.

EEO-1 Report

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PERFORMANCE DATA TABLES1
METRIC

UNIT

2021

2022

2023

Number

43,68042,60744,473

%

64

67

80

Million hours

2.2

2.4

2.5

%

100

100

100

%

45

45

45

SOCIAL
Workforce2
Total workforce
Employee Development
Employees receiving performance reviews
Total learning hours
Employee Benefits2
Full-time employees with access to benefits
Other Employee and Workforce Metrics2
Employees covered by collective bargaining agreement

1 Unless stated otherwise, the data disclosed in these tables include Mission Technologies, Newport News Shipbuilding, and Ingalls Shipbuilding information. Figures may differ slightly due to rounding.
2 Includes corporate information.

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PERFORMANCE DATA TABLES1
METRIC

UNIT

2021

2022

2023

Number

2,185

8,078

8,242

Size of the Board of Directors

Number13

13

12

Independent directors

Number11

11

11

Women on Board

Number4

44People from underrepresented groups on Board

Number3

3

3

Board/governing body members who have received a policy on anti-corruption

%

100

100

100

Board/governing body members who have received training on anti-corruption

%

100

0

66

Supply Chain Management
Total number of suppliers
GOVERNANCE2
Board of Directors

Ethics and Compliance2

1 Unless stated otherwise, the data disclosed in these tables include Mission Technologies, Newport News Shipbuilding, and Ingalls Shipbuilding information. Figures may differ slightly due to rounding.
2 Includes corporate information.

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PERFORMANCE DATA TABLES1
METRIC

UNIT

2021

2022

2023

Gigajoules per $ revenue

0.0002834

0.0004565

0.0003484

Total energy consumed

Gigajoules

2,697,685

4,345,960

4,006,190

Non-renewable

Gigajoules

Not available

4,345,960

4,005,315

Renewable

Gigajoules

809

0

875

Total fuel consumption

Gigajoules

Not available

1,867,403

1,495,341

Non-renewable

Gigajoules

Not available

1,867,403

1,495,341

Renewable

Gigajoules

Not available

00

Gigajoules

2,346,986

2,478,557

2,510,849

Scope 1

Metric tons CO₂e

Not available

101,045

82,805

Scope 2 (location based)

Metric tons CO₂e

Not available

222,069

224,349

Total Scope 1 and 2

Metric tons CO₂e

Not available

323,114307,154

ENVIRONMENT
Energy Use
Energy intensity

Grid electricity consumption
Greenhouse Gas Emissions

1 Unless stated otherwise, the data disclosed in these tables include Mission Technologies, Newport News Shipbuilding, and Ingalls Shipbuilding information. Figures may differ slightly due to rounding.
2 Includes corporate information.

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PERFORMANCE DATA TABLES1
METRIC

UNIT

2021

2022

2023

Metric tons CO₂e per $ revenue

Not available

0.00003027

0.00002671

Total hazardous waste generated

Metric tons

516

537

710

Total hazardous waste recycled

Metric tons

326

0

13

GHG emissions intensity
Hazardous Waste

1 Unless stated otherwise, the data disclosed in these tables include Mission Technologies, Newport News Shipbuilding, and Ingalls Shipbuilding information. Figures may differ slightly due to rounding.
2 Includes corporate information.
Note: Due to factors such as company GHG data reporting cycles; the time it takes for vendors to source, aggregate and analyze data; and vendor data quality checks, complete emissions data sets are often unavailable by the publication date of this Report.

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TCFD INDEXHII remains committed to being as transparent as possible with respect to our sustainability initiatives andclimate-based risk management.

• The Compensation Committee has general oversight responsibility for human capital resources, including theThis Appendix includes information responsive to the recommended disclosure framework established by the
Task Force on Climate-Related Financial Disclosures (TCFD). The Report is structured in line with each of the four
TCFD pillars: Governance, Risk Management, Strategy and Metrics and Targets.

• The Audit Committee has oversight responsibility for energy management, including greenhouse gas (GHG)

GOVERNANCE(a) D escribe the Board’s oversight of climate-related risks and opportunities.
The Board and its committees seek to ensure that corporate responsibility and sustainability principles areintegrated into our business strategy in ways that optimize opportunities to make positive impacts whileadvancing long-term goals.
The chief sustainability and compliance officer chairs HII’s Corporate Sustainability Committee and is supported
on a day-to-day basis by a director-level and cross-functional Sustainability Management Team. The chiefsustainability and compliance officer is a member of the Company’s senior leadership team and reports directly
to HII’s CEO.
In connection with HII’s appointment of a chief sustainability and compliance officer and formalization of its
Sustainability Program in 2022, the Board refined its oversight of the Company’s Sustainability Program. The Board
allocated oversight responsibility among the Board and several committees for each of HII’s nine sustainability
focus areas identified through a comprehensive sustainability assessment.

• The Governance and Policy Committee retains general oversight responsibility for the overall Sustainability

specific sustainability focus areas of diversity and inclusion, and employee engagement.

emissions.

• The Cybersecurity Committee is responsible for overseeing cybersecurity-related matters.
The full Board retains oversight responsibility for product safety and quality and supply chain management,
which the Board already oversees as enterprise risks. The Board’s responsibilities also include oversight of risk
management, which includes overseeing our system of financial and operational internal controls, our compliancewith applicable laws and regulations, data and cybersecurity risks and our processes for identifying, assessing,and mitigating other significant risks that may affect HII.
The Board and its committees are also responsible for overseeing HII’s Enterprise Risk Management (ERM)
Program and processes to determine whether they are achieving their objectives. For more information on the
ERM Program, please read the “Risk Oversight and Management” section in part (b) of this Appendix. Seniorleadership briefs the Board annually on the Company’s ERM Program, which includes a report on the results of
the Company’s annual enterprise risk assessment process, a review of the Company’s latest roster of enterpriserisks, assessments of the probabilities of such risks’ occurrence and potential severity and assessments ofmanagement’s capability to mitigate individual enterprise risks.
To learn more about our governance structure, oversight, and roles and responsibilities, please review ourcorporate governance section on page 14.

Program and four focus areas: ethical conduct, community relations, employee health and safety andenvironmental compliance.

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Disclosures

Back to contents (b) Describe management’s role in assessing and managing climate-related risks and opportunities.

STRATEGY	(a) Describe the climate-related risks and opportunities the organization has identified over the short-,
medium- and long-term.
	(b) Describe the impact of climate-related risks and opportunities on the organization’s businesses, strategy
and financial planning.

The chief sustainability and compliance officer chairs HII’s Corporate Sustainability Committee and is supported
on a day-to-day basis by a director-level and cross-functional Sustainability Management Team. The chiefsustainability and compliance officer is a member of the Company’s senior leadership team and reports directly
to HII’s CEO regarding matters relating to Sustainability Program performance.
Supervisory Responsibilities: Oversee the overall development, execution, and performance of the Sustainability
Program; supervise other sustainability team members; chair the Corporate Sustainability Committee; organize
and oversee Sustainability cross-functional teams, also known as Tiger Teams; and collaborate with appropriate
functional and business leaders to develop action steps, assess performance toward goals/objectives, gather
relevant data/information, and produce timely and accurate reports and disclosures.
Duties/Responsibilities: Identify creative ways in which the Company can balance its business obligations with thegoal of supporting and improving sustainability focus areas; propose and implement strategies to address various
environmental concerns including energy use, conservation, pollution reduction and recycling; provide general
education on sustainability; conduct research to identify environmental and sustainability concerns, interests, andissues; draft and prepare reports, presentations, and proposals; present relevant proposals and recommendations
to the CEO, Board of Directors and other key stakeholders; ensure compliance with all applicable local, state,federal, and internal environmental laws and regulations; identify and facilitate training and educational
opportunities for employees; research sustainability and environmental best practices; monitor sustainability
initiatives for effectiveness and progress; explore ways to make business activities more sustainable; and perform
other related duties as required.

Climate-related risks are evaluated as part of HII's Annual Enterprise Risk Assessment Process which includes ananalysis of emerging risks. HII recognizes that climate-related risks and opportunities may have potential short-,
medium-, and long-term impacts on our business and operations. As such, we have the below definitions for our
short-, medium-, and long-term time horizons. These time horizons were selected as climate-related risks andopportunities can manifest across various risk categories across different timeframes.

TIME HORIZONFROM (YEARS)TO (YEARS)

Short-term

1

5Medium-term

5

10Long-term

10+

CLIMATE-RELATED RISKS
Climate-related risks are separated into two categories:

RISK OVERSIGHT AND MANAGEMENTManagement has implemented a robust ERM Program, which includes annual risk assessments, risk analyses
and the development of risk plans for each enterprise risk, including risk mitigation activities, risk monitoring forboth existing and emerging risks and periodic reports on individual enterprise risks and ERM Program activities
to senior leadership and the Board. Our ERM process is managed by an Enterprise Risk Committee, comprised ofmanagement from across business units and programmatic and functional disciplines within the Company. The
Enterprise Risk Committee is responsible for overseeing the enterprise risk assessment process, overseeing thedevelopment and monitoring of enterprise risk mitigation plans, assessing risk correlations, monitoring emerging
and evolving risks and generating data and reports to facilitate management decision-making and the Board’s
risk oversight function. While the Board and its committees oversee risk management, management is responsiblefor identifying, assessing, managing and mitigating risks.

Transition Risks: Risks associated with the transition to a low-carbon economy, including the introduction ofclimate-related regulations, policies, and laws as well as market trends and low-carbon technological trends.
Physical Risks: Risks associated with the physical impacts of climate change, including acute and chronic
physical risks.
HII recognizes both risks and has taken steps to help manage the potential impacts of these risks. For more
information on the management of the climate-related risks, please read the “Risk Management” section of the
Task Force on Climate-Related Financial Disclosures Appendix.

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Building Our Community

Protecting Our Resources

RISK TYPE

SPECIFIC RISKYEAR TIME FRAME(S)Transitional

Current
regulation

Short-term

Transitional

Emerging
regulation

Medium-term

Transitional

Reputation

Short- to Long-term

Disclosures

Back to contents 

POTENTIAL FINANCIAL AND OPERATIONAL IMPLICATIONS
Potential financial and operational implications. Our operations are subject to and affected by federal, state, and local environmental laws andregulations relating to the discharge, storage, treatment, handling, disposal, and remediation of certain materials, substances, and wastes used in ouroperations. Future environmental laws or regulations could also impact HII. Increased public awareness and concern regarding global climate change
may result in more federal, regional, and/or international requirements to reduce or mitigate global warming, and legislation, international protocols or
treaties, or regulation could mandate stricter limits on greenhouse gas emissions. Environmental laws and regulations may require the installation of
costly pollution control equipment or operational changes to limit emissions or discharges and/or to decrease the likelihood of accidental hazardous
material releases. We expect to incur future capital and operating costs to comply with current and future laws and regulations for environmental
protection and remediation, and such costs could be substantial, depending on the future proliferation of environmental requirements and the extent towhich we discover currently unknown environmental conditions.
Potential financial and operational implications. The adoption of new environmental or climate change laws and regulations, stricter enforcementof existing laws and regulations, imposition of new cleanup requirements, discovery of previously unknown or more extensive contamination, litigation
involving environmental matters, our inability to recover related costs under our government contracts, or the financial insolvency of other responsible
parties could cause us to incur costs that could have a material adverse effect on our financial position, results of operations, or cash flows.

Transitional

Legal

Short- to Long-term

Substantial fines, penalties, and criminal sanctions may be imposed for noncompliance, and certain environmental laws impose joint and several“strict liabilities” for remediation of spills and releases of oil and hazardous substances. Such laws and regulations impose liability upon a party forenvironmental cleanup and remediation costs and damage without regard to the negligence or fault of such party and could expose us to liability forthe conduct of or conditions caused by third parties. Moreover, if we violate the Clean Air Act or the Clean Water Act, the facility or facilities involved in
the violation could be placed by the EPA on the “Excluded Parties List” maintained by the General Services Administration, which would continue until the
EPA concluded the cause of the violation was cured.

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RISK TYPE

PhysicalSecuring Our Business

SPECIFIC RISK

Acute physical

Building Our Community

Protecting Our Resources

YEAR TIME FRAME(S)

Short-term

Disclosures

Back to contents 

IMPACT
Potential financial and operational implications. We have significant operations located in regions of the United States that have been, and may inthe future, be exposed to damaging storms, such as hurricanes and floods. The intensity or frequency of these events may be exacerbated by climatechange as well as other potential impacts of climate change, including rising sea waters, and environmental disasters, such as oil spills. Natural disasters
can disrupt our workforce, electrical and other power distribution networks, computer and internet operations and accessibility, and critical industrial
infrastructure needed for normal business operations. This can adversely affect our contract performance and, as a result, our financial results.
Damage and disruption resulting from natural and environmental disasters may be significant. Should insurance or other risk transfer mechanisms be
unavailable or insufficient to recover material costs associated with natural or environmental disasters or other events, we could experience a material
adverse effect on our financial position, results of operations, or cash flows.

Physical

Chronic
physicalMedium- to Long-term

Our suppliers and subcontractors are also subject to natural and environmental disasters that could affect their ability to deliver products or services orotherwise fulfil their contracts. Performance failures by our subcontractors or suppliers due to natural or environmental disasters may adversely affectour ability to perform our contracts, which could reduce our profitability in the event damages or other costs are not recoverable from the subcontractor
or supplier, the customer, or insurers. Such events could also result in the termination of the prime contract and have an adverse effect on our ability tocompete for future contracts.

For more information on the management of above climate-related risks, please refer to the “Risk Management” section of this Appendix.

2024 Sustainability Report74Welcome

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Disclosures

Back to contents 

CLIMATE-RELATED OPPORTUNITIES
Efforts to manage and adapt to climate-related influences can provide business, operational, and financial
opportunities. Opportunities may include resource efficiency and associated cost implications, energy sourcing,product and services, new market opportunities, and better management of risks.

OPPORTUNITY

Products andservices

SPECIFIC OPPORTUNITY

Development and/or
expansion of low emission
products/services

TIME FRAME

IMPACT

Medium- to Long term

Financial and operational impacts. Nuclear energy, although sometimes not considered a renewable fuel, is critical to a reduced-carbon future.
Nuclear energy is highly technical, heavily regulated and hard to generate. In fact, HII is one of only two companies currently building nuclearpowered vessels in the United States. The advantage is a nuclear propulsion system that uses zero fossil fuels to propel the platform, and powerelectrical, steam and cooling systems. A conventionally powered aircraft carrier, similar in specs to the CVN 78 Ford class will result in millions of
tonnes of GHG emissions over a 50-year service life. With nuclear power, there are little direct GHG emissions in propelling 100,000 tons of steel
through the water at fast speeds. Nuclear energy gives our customers strategic, tactical and protective advantages, without giving our planet
the GHG emissions of a conventionally powered platform.

Financial impacts. Across our three divisions, we collect data on how much water and energy was saved, whether it be from more efficientsystems, buildings or investments in better resources. Moreover, HII also records how much of each type of material was recycled, such as
paper, metal, electronics, and more. Members from all divisions of HII are currently working together to set goals to work towards regarding theamounts of resources being saved or recycled.
Resource
efficiency

Resource utilization andmanagement

Short-term

Our three divisions use tools such as the EnergyCAP utility monitoring software to track and manage energy usage. The data are used to
optimize systems, from HVAC to lighting, reduce our costs, and bring in more energy efficient infrastructure: including new roofs, AC units, LED
light replacements, solar energy and electric-powered mobile equipment.
For more information and examples, please refer to the Energy and Greenhouse Gas Management section, page 46.

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Disclosures	(c) Describe the resilience of the organization’s strategy, taking into consideration different
climate-related scenarios, including a 2°C or lower scenario.
HII currently has not conducted a climate-related scenario analysis. However, we anticipate conducting a
climate-related scenario analysis within the next two years. The 2022 data will also serve as our baseline for
reduction targets. Based on the results of this inventory and method, we plan to develop and implement a
climate-related scenario analysis based on SBTi standards. Please refer to the Sustainability Commitment
section for more information on our environmental commitments.

Back to contents 

RISK MANAGEMENTa) Describe the organization’s processes for identifying and assessing climate-related risks.
b) Describe the organization’s processes for managing climate-related risks.
c) Describe how processes for identifying, assessing, and managing climate-related risks are integrated
into the organization’s overall risk management.
Climate-related risks are evaluated as a part of HII's annual ERM process which includes an analysis of
emerging risks. HII recognizes that climate-related risks and opportunities may have potential short-, medium-,and long-term impacts on its business and operations. Please review the “Strategy” section of this Appendix
for additional insights.
HII has a robust Compliance and Ethics Programthat spans the HII Enterprise. The Compliance Program run
by HII’s Law Department, helps the company assess risks related to current and emerging regulations, and is
supported by various compliance and ethics specialists throughout the business. For more on our Complianceand Ethics Program, see link.

RISK TYPE

SPECIFIC RISK

CLIMATE-RELATED RISK DESCRIPTION

Transitional

Current regulation

Transitional

Emerging regulation

Transitional

Reputation

Our operations are subject to and affected by federal, state, and local environmental laws and regulations relating to the discharge, storage, treatment, handling, disposal,
and remediation of certain materials, substances, and wastes used in our operations. Future environmental laws or regulations could also have an impact on us. Increased
public awareness and concern regarding global climate change may result in more federal, regional, and/or international requirements to attempt to reduce or mitigate global
warming, and legislation, international protocols or treaties, or regulations could mandate stricter limits on greenhouse gas emissions. Environmental laws and regulations
may require the installation of costly pollution control equipment or operational changes to limit emissions or discharges and/or to decrease the likelihood of accidental
hazardous material releases. We expect to incur future capital and operating costs to comply with current and future laws and regulations for environmental protection andremediation, and such costs could be substantial, depending on the future proliferation of environmental requirements and the extent to which we discover currently unknown
environmental conditions.

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RISK TYPE

Building Our Community

SPECIFIC RISK

Protecting Our Resources

Disclosures

CLIMATE-RELATED RISK DESCRIPTION

Back to contents 

HII MANAGEMENT OF RISK

The adoption of new environmental or climate change laws and regulations, stricter enforcement of existing laws and regulations, impositionof new cleanup requirements, discovery of previously unknown or more extensive contamination, litigation involving environmental matters, ourinability to recover related costs under our government contracts, or the financial insolvency of other responsible parties could cause us to incur
costs that could have a material adverse effect on our financial position, results of operations, or cash flows.
Transitional

Physical

Legal

Acute physicalSubstantial fines, penalties, and criminal sanctions may be imposed for noncompliance, and certain environmental laws impose joint and several“strict liability” for remediation of spills and releases of oil and hazardous substances. Such laws and regulations impose liability upon a party
for environmental cleanup and remediation costs and damage without regard to the negligence or fault of such party and could expose us toliability for the conduct of or conditions caused by third parties. Moreover, if we violate the Clean Air Act or the Clean Water Act, the EPA could
place the facility or facilities involved in the violation on the “Excluded Parties List” maintained by the General Services Administration, which
would continue until the EPA concluded the cause of the violation was cured.
We have significant operations located in regions of the United States that have been and may in the future be exposed to damaging storms,
such as hurricanes and floods, the intensity and frequency of which are being exacerbated by climate change, other impacts of climate change,
including rising sea waters, and environmental disasters, such as oil spills. Natural disasters can disrupt our workforce, electrical and other power
distribution networks, computer and internet operations and accessibility, and critical industrial infrastructure needed for normal business
operations, which can adversely affect our contract performance and, as a result, our financial results.
Damage and disruption resulting from natural and environmental disasters may be significant. Should insurance or other risk transfer
mechanisms be unavailable or insufficient to recover material costs associated with natural or environmental disasters or other events, we could
experience a material adverse effect on our financial position, results of operations, or cash flows.

Physical

Chronic physicalSee our Safety &Environmental Program
descriptions

See our Safety &Environmental Program
descriptions

Our suppliers and subcontractors are also subject to natural and environmental disasters that could affect their ability to deliver products orservices or otherwise fulfil their contracts. Performance failures by our subcontractors or suppliers due to natural or environmental disasters
may adversely affect our ability to perform our contracts, which could reduce our profitability in the event damages or other costs are notrecoverable from the subcontractor or supplier, the customer, or insurers. Such events could also result in a termination of the prime contractand have an adverse effect on our ability to compete for future contracts.

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Disclosures

METRICS(a) D isclose the metrics used by the organization to assess climate-related risks and opportunities in linewith its strategy and risk management process.
The GHG inventory accounted for seven GHGs: CO₂, CH₄, N₂O and the fluorinated gases HFC, PCF, SF₆, and NF₃.
(b) Disclose Scope 1, Scope 2 and, if appropriate, Scope 3 GHG emissions and the related risks.
METRIC

UNIT

2021

2022

2023

Scope 1 emissions

Metric tons CO₂e

Not available

101,045

82,805

Scope 2 emissions – location
based

Metric tons CO₂e

Not available

222,069

224,349

Scope 1 and 2 emissions
intensity ratio

Metric tons CO₂e/
USD $ revenue

Not available

0.00003027

0.00002671

Back to contents (c) Describe the targets used by the organization to manage climate-related risks and opportunities andperformance against targets.
Founded on our sustainability priorities, in 2023, we set sustainability commitments to guide our Sustainability
Strategy. These commitments were developed by four teams of subject matter experts from across our threedivisions. The teams were charged with developing specific sustainability objectives suited to HII’s business andSustainability Strategy. In doing so, the teams considered the impact on HII’s stakeholders, business strategy,
operations and customers and on regulatory requirements.
By the end of 2024, HII will develop a roadmap to exceed a 30% reduction in Scope 1 and 2 GHG emissions basedon the 2022 baseline.

HII has not evaluated its Scope 3 GHG emissions.
HII has enhanced our methodology and data collection practices for environmental data including Scope
1 and Scope 2 emissions to improve data quality. Our data reflects operational greenhouse gas emissions
from our three divisions for the calendar years 2022 and 2023. Sites that are not included in this metric
are those that are not yet operational, such as those under initial construction, or those over which we donot maintain operational control, including government-run or fully serviced leased facilities. The disclosed
combined emissions for Scope 1 and 2 are based on utility data, derived by using the location-based method
outlined by the Greenhouse Gas (GHG) Protocol for Scope 2.

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