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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®.

With our VoLT growth strategy as the catalyst, we are committed to embodying our long-standing 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. Our purpose, values, and VoLT growth strategy are at the center of our approach to ESG and our aspiration to create a more secure, resilient, and equitable future for all.

OUR ESG STRATEGY

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.

In our 2022 report, we introduced our new ESG strategy statement. Our ESG strategy guides how we manage and communicate our ESG program, goals, and impacts. Our ESG program is influenced by internal and external drivers that are continuously shaping our relationships with our stakeholders and our material ESG topics. As shown here, our ESG impact pillars are one way of understanding how we align our material ESG topics to Booz Allen's purpose, values, and VoLT growth strategy. These impact pillars are the avenues through which we execute our vision of creating a more secure, resilient, and equitable future for all.

Pillar 1, Empower Diverse Talent. Pillar 2, Make Innovation Accessible to All. Pillar 3, Drive Community Resilience

MANAGING ESG TOPICS

Our formal ESG governance includes oversight by our Board of Directors and the executive management-level ESG Committee, operational responsibility by the ESG Council, and enterprise-wide strategic direction by a dedicated team 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, disclosures, 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, 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.

ESG TOPIC MATERIALITY

We use the AI-powered business intelligence platform, Datamaran, as a complement to our ESG management processes, thereby harnessing innovation to power a continuous data-driven review of ESG-related risks in our regulatory, competitive, and operating contexts.

Our 2022 materiality assessment and continuous use of Datamaran throughout 2023 confirmed that we remained focused on the ESG topics that are most relevant to our business and stakeholders. These are our material ESG topics: the topics that could most affect Booz Allen's ability to create long-term shareholder value. They reflect what is important to stakeholders such as investors, employees, and clients, and are aligned with Booz Allen's aim of positive impacts on our clients, society, the environment, and the economy.

We used Datamaran to assess and prioritize the 26* 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 materiality assessment took into consideration internal and external stakeholder priorities based on an employee survey, our prior ESG disclosures, peer and sector disclosure benchmarking, regulatory and legal requirements, and media coverage.

The material topic list shows the set of prioritized topics assessed to be at the intersection of stakeholder priorities and our firm's greatest impact. Throughout FY23, we had no notable changes to our material topics. To help stakeholders navigate our report, we identify the material ESG topics addressed in a report section in the introduction to that section.

In the year ahead, in addition to using Datamaran and other business intelligence platforms to continuously monitor stakeholder priorities and ESG-related business risks, we plan to conduct a materiality assessment informed by the latest iterations of global reporting standards, regulatory requirements, and disclosure expectations.

Material Topics*

  • Access & Affordability
  • Business Model Resilience
  • Climate Change & Greenhouse Gas Emissions
  • Community Relations
  • Customer Practices
  • Customer Privacy & Data Security
  • Employee Diversity & Inclusion
  • Employee Health & Safety
  • Ethical Corporate Behavior
  • Governance Structures & Mechanisms
  • Human Rights
  • Innovation & Technology
  • Labor Practices
  • Physical & Sociopolitical Risks
  • Sourcing Efficiency & Management
  • Transparency
  • Workforce Management

Datamaran revised its ontology in 2023, reducing by one the number of assessed ESG topics applicable to our industry by removing Public Health Risks as a topic and moving it to be an issue under the Business Model Resilience topic.