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Approach to ESG

Our purpose is simple, yet bold in scope and lofty in aspiration: empower people to change the world®. It is what keeps us focused on our strength: our people. With our VoLT growth strategy as the catalyst, we are committed to embodying our values and applying our talents to create opportunities, transform our clients' missions, and change the world for the better—both through how we operate as an institution and how we support our people, our clients, and our communities.

We aspire to create a more secure, resilient, and equitable future for all. Our people embrace change and use it as a catalyst to modernize industries, transform security, and advance society. How we manage continuously evolving environmental, social, and governance (ESG) risks and opportunities is a key element of this change management process. Our purpose and values serve as our guide, informing our ESG programs and further enhancing our ability to create a more secure, resilient, and equitable world. Our VoLT growth strategy positions us to move faster than the pace of change through our service at the heart of the mission coupled with relentless technological innovation.

As a market leader and technology innovator, we are proud of our comprehensive ESG strategy, defined areas of focus, and work to implement sustainable business practices. These efforts act together to optimize the value of this work for our people, our clients, and our communities.

Looking ahead, our ESG efforts will continue to prioritize how we serve our various stakeholders as well as inform our VoLT growth strategy. See more on page 10 about these efforts. We know that continued growth requires increased speed, agility, and scale in a rapidly changing, highly competitive, and increasingly technical environment—and our ESG program is built to help us meet this demand.

Our ESG strategy and program operations reflect our corporate policies along with our commitments and perspectives on important ESG topics, many of which are publicly available. These policies and commitments express expectations of our directors, employees, and business partners, such as those included in the Code of Business Ethics and Conduct and the Supplier Code of Conduct. Our commitment statements describe how we address societal priorities such as conflict minerals, political activities, and environmental sustainability. Learn more about these policies and commitments on our website.


Our formal ESG governance includes oversight by our Board of Directors and an executive management-level ESG Committee, operational responsibility by an ESG Council, and enterprise-wide strategic direction by a dedicated function within the Office of the Corporate Secretary.

Board of Directors

Our Board of Directors provides governance and oversight over the strategy, risk, operations and management of the firm. The Nominating and Corporate Governance Committee provides primary oversight of—and engages with management on—our ESG strategy, including our approach to ESG-related risks, opportunities, disclosure, operations, and management.

ESG Committee

The executive management-level ESG Committee operates with the Board of Directors' authority to act on ESG matters. Chaired by our Chief Legal Officer and comprised of senior executives, including our President and Chief Executive Officer, the ESG Committee uses its deep knowledge of our business, business strategies, and ESG priorities, goals, and plans to champion our ongoing commitment to ESG and the gradual integration of ESG principles into our business strategy.

ESG Council

The senior management-level ESG Council is comprised of key functional and business leaders across the firm, each holding operational or policy-level responsibility for an area of our performance or practices that relates to our ESG priorities.

ESG Team

The ESG team drives our global ESG strategy and supports our Board of Directors, ESG Committee, and ESG Council by providing relevant information and data-driven guidance for strategic decision making, enhancing transparency through internal accountability and external reporting channels, advocating for integration of ESG principles into business strategy, and coordinating and evolving the integration of ESG initiatives into our business operations to reflect business, regulatory, and market imperatives.

GUIDE ESG COMMITMENTS AND GOALSESG TEAMBOARD OF DIRECTORSProvides oversight of our ESG strategy; establishes related enterprise commitments and goals; and champions integration of ESG principles into business strategy and operations ESG COMMITTEEIntegrates ESG principles and best practices into policies, programs, and practices to improve ESG performance ESG COUNCILIDENTIFY RISKS AND OPPORTUNITIESMANAGE DISCLOSURESINFORM BUSINESS DECISIONS

Our ESG Strategy

In 2021, we began leveraging artificial intelligence (AI)-powered risk analysis software, Datamaran, to complement our ESG management processes, thereby harnessing innovation to power a continuous data-driven review of ESG-related risks and our regulatory, competitive, and operating contexts.

In 2022, we refreshed our materiality assessment to ensure we continue to remain focused on the ESG topics that are most relevant to our business and the priorities of our stakeholders. Material ESG topics are those that could most affect Booz Allen's performance and ability to create long-term stakeholder value, and are relevant to Booz Allen's most significant impacts on society, the environment, or the economy. We used Datamaran to assess and prioritize the 27 ESG topics most commonly identified as material by companies in our sector. For a list of all ESG topics assessed and their definitions, refer to the resource guide on our website. The assessment took into consideration internal and external stakeholder priorities based on an employee survey, our past ESG disclosures, peer and sector disclosure benchmarking, regulatory and legal requirements, and media coverage.

Our materiality matrix shows a narrowed down set of assessed topics found to be at the intersection of our stakeholders' highest priorities and where we consider ourselves to have the greatest impact. Materiality increases as one moves towards the upper right quadrant. Our 2022 materiality assessment revealed no notable changes to our material topics since our 2021 assessment, though some became slightly more or less important to our stakeholders. To help stakeholders navigate our report, the material ESG topics addressed in a report section are identified in its introduction.

Moving forward, in addition to using Datamaran and other business intelligence platforms to continuously monitor stakeholder priorities and ESG-related business risks, we plan to conduct robust materiality assessments on regular cycles to inform our ESG strategy and reporting.

Materiality Matrix


*We assessed 27 ESG topics used by Datamaran and companies in our sector. This matrix shows only the topics we selected as material for ESG reporting. The placement of ESG topics against the axes reflects a point-in-time analysis. Topics may shift in relative importance and relevance with current events, stakeholder priorities, or business changes.

We are creating a more secure, resilient, and equitable future for all through our efforts to empower diverse talent, make innovation accessible to all, and drive community resilience.

During FY22, we assessed how we had been communicating our ESG strategy and performance to internal and external stakeholders. We considered the internal drivers shaping how we interact with society and the opportunities we have to create positive, sustainable value. We considered external drivers affecting us, such as community needs, ESG reporting requirements, and ESG risks to our business. At the intersection of these internal and external drivers are what we call our ESG Impact Pillars. Our three pillars express and focus our priorities for ESG impact management—where we plan to prioritize future commitments and measurement. They are the channels through which we execute our ESG vision of creating a more secure, resilient, and equitable future for all.

Client Missions & Challenges Regulatory & Legal Requirements Societal Needs Supplier & Partner Relationships Investor Priorities ESG Reporting Frameworks OUR ESG IMPACT PILLARSINTERNAL DRIVERSEXTERNAL DRIVERSEMPOWER DIVERSE TALENTEnsure that all people haveaccess to opportunities as wellas the agency and support toachieve their goals MAKE INNOVATION ACCESSIBLE TO ALLChampion innovation that reaches, reflects, and benefits our diverse society DRIVE COMMUNITY RESILIENCEProtect against evolving threats and known inequities in our communitiesWE ARE CREATING A MORE SECURE, RESILIENT, AND EQUITABLE FUTURE FOR ALL. Purpose & Values Our People VoLT Growth Strategy Our Capabilities & Expertise