Booz Allen Hamilton — full event log

Booz Allen has formalised a cross-functional Climate Impact Initiative aligned to its SBTi-validated targets and net-zero 2050 commitment. The initiative encompasses four workstreams: (1) reducing Scope 1 and 2 emissions, (2) engaging the value chain to reduce Scope 3 emissions, (3) partnering with business leaders to integrate climate into business strategy and value proposition, and (4) empowering employee groups via the Sustainability Engagement Network (SEN) to drive local facility-level greening activities. The ERS Committee (chaired by the Chief Legal Officer) provides executive oversight with quarterly Board reporting.

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SBTi approved net-zero target (NZ1) set 12/07/2023: reach net-zero GHG emissions across entire value chain by FY2050. Covers Scope 1, 2, and 3. 90% reduction target. Linked to Abs1-Abs4.

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FY24 Scope 1 reporting boundary expanded to include natural gas from two Booz Allen facilities. Added 179.34 tCO2e (1.5% increase). Prior years (FY23 and base year) have been recalculated.

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Following methodology and boundary changes in FY24, base year (FY2020) and FY2023 emissions were recalculated for Scope 1, Scope 2 location-based, and Scope 3 per internal policy (5% threshold).

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Booz Allen reports 0 MWh from renewable sources in FY24 across all energy categories. All facilities are 100% leased from third parties, meaning Booz Allen does not currently have access to contractual instruments or utility company emission factors. The facilities teams continue to work with landlords and property managers to seek arrangements by which utility information and renewable energy options may be made available. No RECs, PPAs, or green tariffs are currently in place, resulting in a 0% renewable energy figure.

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Business travel (Cat 6) is one of the two largest Scope 3 emission sources at 43,813 tCO2e in FY24, covering air travel, car rentals, personal vehicle mileage, and hotel stays. Booz Allen's SBTi near-term target (Abs2) covers 90% of Cat 6 emissions with a 50.4% reduction goal by FY2032. The firm employs a proactive telework strategy providing employees flexibility to conduct business remotely, reducing travel demand. Travel emissions are tracked through primary travel service providers (air, rental car agencies) using GHG Protocol factors; 90% of Cat 6 emissions are from supplier-specific data.

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Cat 5 Waste methodology changed to use building utilization rates and a custom emissions factor based on waste generated at McLean HQ headquarters, extrapolated to all facilities by square footage. Results decreased from 3085 tCO2e (FY23) to 234 tCO2e (FY24).

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The Science Based Targets initiative approved Booz Allen Hamilton's near-term (50.4% by FY2032) and long-term (net-zero by FY2050) targets in FY24. Booz Allen joined Race to Zero Campaign and We Mean Business as part of commitment.

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SBTi approved Abs2 near-term Scope 3 target (12/27/2023): reduce absolute Scope 3 emissions 50.4% by FY2032 from FY2020 base, covering Cat 1,3,4,5,6,7,8,15. 1.5C aligned.

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SBTi approved Abs4 long-term Scope 3 target: reduce absolute Scope 3 GHG emissions 90% by FY2050 from FY2020 base year, covering Cat 1,3,4,5,6,7,8,15. 1.5C aligned.

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SBTi approved Booz Allen's near-term absolute emissions reduction target on 12/27/2023 (Abs1): reduce Scope 1 and 2 GHG emissions by 50.4% by FY2032 from FY2020 base year. 1.5C aligned.

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SBTi approved Abs3 long-term target: reduce absolute Scope 1+2 GHG emissions 90% by FY2050 from FY2020 base year. 1.5C aligned.

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FY24 Scope 3 boundary expanded to include Category 2 (Capital Goods), Category 3 (Fuel and Energy), Category 4 (Upstream Transportation & Distribution), Category 15 (Investments). Cat 1 expanded to include non-sourceable spend.

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Annual reasonable assurance obtained for Scope 1 and 2, limited assurance for Scope 3 from IEC GHGi per ISO14064-3. All reported emissions verified 100%. Scope 3 categories covered: Cat 1,2,3,4,5,6,7,15.

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Booz Allen's net-zero target (SBTi-approved, FY2050) states the firm is 'unsure' whether it intends to neutralize residual emissions with permanent carbon removals at the end of the target period. The firm plans to mitigate emissions beyond its value chain within the next two years (beyond value chain mitigation, BVCM). No carbon removals or offsets have been retired in the current reporting year. The transition plan, currently under development, is expected to clarify the approach to residual emissions within two years.

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Booz Allen's primary Scope 1+2 lever is reducing energy use in its 100% leased office portfolio. In FY24, one energy efficiency initiative is underway with estimated annual savings of 1,250 tCO2e in Scope 2 and Cat 3. The Real Estate team is pursuing broad-scale space optimisation including leased building characteristics and energy-efficient design elements. Scope 2 emissions fell from 12,292 tCO2e (FY23) to 10,446 tCO2e (FY24), partly due to workspace consolidation reducing leased square footage. The firm's SBTi Abs1 target requires a 50.4% reduction in Scope 1+2 by FY2032 from a FY2020 baseline of ~15,147 tCO2e.

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Purchased goods and services (Cat 1) is the largest absolute Scope 3 category at 271,453 tCO2e in FY24, a significant increase from FY23 due to methodology expansion to include non-sourceable spend. Booz Allen uses dollar spend data matched to USEEIO NAICS emissions factors. The firm is working to implement a sustainable supply chain programme and plans to introduce environmental requirements for suppliers within the next two years. Suppliers are prioritised based on leverage. The SBTi near-term target (Abs2) covers 90% of Cat 1 with a 50.4% reduction target by FY2032. Future engagement will focus on direct emissions data from key suppliers.

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Employee commuting (Cat 7) is the largest Scope 3 category at 44,218 tCO2e in FY24, including both physical commuting and telework energy emissions. Booz Allen conducts an annual voluntary employee commuting survey to estimate commuting footprints by mode and distance. Due to Booz Allen's hybrid working situation, telework emissions from electricity and natural gas at employees' homes are included using Anthesis and US EPA factors. The SBTi near-term target (Abs2) covers 90% of Cat 7 with a 50.4% reduction target by FY2032. Hybrid work policy is a key lever for reducing this category.

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Booz Allen currently does not require suppliers to meet climate-related requirements but plans to introduce them within the next two years. Engagement with suppliers and subcontractors occurs via a Supplier Code of Conduct, small business program, and mentor-protege program. The Climate Impact Initiative includes an objective to 'Reduce the Emissions of Our Value Chain,' and Scope 3 Category 1 (purchased goods and services) is identified as relevant but not yet calculated.

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Combined Scope 1 and 2 emissions increased by 482.35 tCO2e vs FY21. FY21 was a unique year due to COVID-19 measures. FY20 saw a decrease of approximately 800 MT CO2e from FY20.

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Booz Allen estimates employee commuting emissions (7,302.7 tCO2e in FY22) using a voluntary annual survey and distance-based methodology. Due to COVID-19 telework policies in FY21 and FY22, FY20 survey data was extrapolated using badging data to estimate in-office attendance. Greater than 85% of workforce was in mandatory telework during FY21, materially reducing commuting emissions. Remote work is recognized as a lever for reducing this category.

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Booz Allen leases all office space (~2.5 million sq ft) and does not own or manage buildings, making Scope 2 the primary operational emissions source. In FY2022, actual utility bill kWh data was accessed for 19 facilities comprising ~41% of total leased square footage, improving accuracy over estimation methods. The firm continues working with landlords and property managers to expand utility data access. All remaining facilities use estimation based on occupied square footage.

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Booz Allen obtained third-party limited assurance per ISO14064-3 for Scope 1, Scope 2 (location-based), and Scope 3 business travel and employee commuting. Annual process, 100% of reported emissions verified.

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In FY22, Booz Allen's ESG Committee launched the Climate Impact Initiative to set SBTi-validated targets for Scope 1, 2, and 3 emissions within 2 years, using FY2020 as the baseline. The initiative is organized around four objectives: Reduce Our Emissions; Reduce the Emissions of Our Value Chain; Integrate Climate into Business Strategy; and Influence Climate Action in Society. The firm joined the Business Ambition for 1.5°C campaign and committed to net-zero no later than 2050.

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Booz Allen tracks Scope 3 business travel emissions (12,009.64 tCO2e in FY22) in collaboration with its travel service provider, capturing airline flight segments, rental car mileage, hotel stays, and personal vehicle use. EPA Climate Leaders emission factors and UK Government GHG Conversion Factors are used. 99% of emissions are calculated using supplier data. Business travel is a dominant Scope 3 category for the firm and is subject to third-party limited assurance.

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Booz Allen committed to reach net-zero GHG emissions no later than 2050 and joined Business Ambition for 1.5°C. The ESG Committee launched the Climate Impact Initiative in FY22 to set SBTi-validated targets for Scope 1, 2, and 3 within 2 years, with FY2020 as baseline.

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Booz Allen's NexGen Strategy optimizes office space and design, adopting an open workspace concept with more natural lighting, enhanced connectivity tools, and a variety of work spaces while reducing square footage and energy use. This initiative is in the implementation commenced phase with an estimated annual CO2e saving of 3,000 tCO2e from Scope 2 (location-based) emissions. It is classified as voluntary with an ongoing lifetime and no payback requirement.

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In 2014, Booz Allen set goals to reduce Scope 2 emissions intensity by 15% per FTE employee and per square foot by 2026 vs CY2014 baseline. Both targets were already achieved by FY2021 (30% and 27% reductions respectively).

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