BigBear.ai (BBAI Stock): How This AI Company Can Support Sustainability

Investors are closely watching for companies that help track and manage climate data as the world focuses more on sustainability. One of the major names with potential in this space is BigBear.ai (NYSE:BBAI).

BigBear.ai is not just a software company. It plays a behind-the-scenes role in supporting governments, firms, and ESG managers by making data easier to understand, analyze, and act on. The company has also set its own climate goals, including a net-zero target by 2030.

The company’s financials are impressive. Revenue grew to $43.8 million in Q4 2024, up 8% year-over-year. It ended the quarter with a $437 million backlog, more than double the $168 million seen in Q3 2023. Its net debt-to-cash ratio improved from 4.0x to 1.2x by the end of 2024. Cash reserves totaled $107.6 million as of Q1 2025.

Let’s take a closer look at how BigBear.ai can help support the ESG and climate analytics space, and why it may interest investors focused on sustainability and AI.

Helping Organizations Make Sense of ESG Data

ESG data is one of the fastest-growing areas in finance and corporate reporting. But many organizations struggle to collect, process, and make decisions from this data because it comes from so many sources—satellite imagery, IoT sensors, supply chains, and internal reports.

BigBear.ai can help solve this problem. Its AI tools are designed to handle large and complex datasets. For example, a company trying to measure its carbon footprint across global supply chains can use BigBear.ai’s platform to track emissions in real time. It brings together structured and unstructured data—like spreadsheets, reports, and live feeds—and turns it into useful insights.

The company’s software detects patterns and highlights risks, helping ESG teams identify where emissions are high or where human rights concerns might be emerging. By turning raw data into visual dashboards and clear reports, BigBear.ai supports better decision-making in both the private and public sectors.

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Supporting Climate and Environmental Data Analysis

BigBear.ai’s tools help agencies and organizations manage large datasets to improve operational efficiency and decision intelligence. While not specifically focused on climate modeling, its AI tools have the potential to enhance analysis of complex environmental datasets and improve understanding of various operational scenarios.

BigBear.ai’s technology is being deployed through several significant U.S. government contracts. Under a sole-source, five-year contract valued at approximately $165 million, the company is helping the U.S. Army modernize 15 legacy systems through the Global Force Information Management – Objective Environment (GFIM-OE) project.

Another contract, valued at $13.2 million, supports the Joint Staff Directorate by enabling AI-powered decision-making capabilities that can be applied to a range of operational scenarios, including disaster response and environmental considerations.

BigBear.ai was also named a subcontractor on a $2.4 billion Federal Aviation Administration (FAA) contract aimed at modernizing national IT infrastructure. Its VeriScan™ biometric tools are currently deployed at 14 gates at Denver International Airport and are in use at Heathrow Airport.

These deployments enhance operational efficiency and security in airport environments. These improvements can indirectly support ESG goals by streamlining operations, improving passenger processing, and supporting the airport’s emission reduction goals.

Government and Defense Roots Strengthen Its Tech

BigBear.ai didn’t start as an ESG or climate tech company. It has deep roots in defense and national security, formed from a merger of multiple analytics firms. Its early work with U.S. intelligence agencies gave it experience handling secure, high-stakes data environments.

That background now helps it to potentially offer reliable and secure platforms for ESG and environmental analytics. As more governments apply AI to climate goals, BigBear.ai’s existing relationships in the public sector give it a competitive edge.

In December 2024, the company was awarded a 10-year GSA OASIS+ IDIQ contract covering five areas—including research, logistics, and intelligence—with applications ranging from environmental forecasting to resilient infrastructure planning. It also won a Department of Defense contract for its Virtual Anticipation Network Environment (VANE), designed to improve geopolitical and environmental threat analysis.

The company’s international exposure is growing as well. In early 2025, BigBear.ai showcased its predictive analytics tools at the International Defense Conference (IDEX) in the UAE, signaling expanding global interest in its climate modeling solutions.

BigBear.ai has formed strategic partnerships to strengthen its capabilities. Here are some of the major ones.

Project ORION – AI-Powered Decision Support
In 2024, BigBear.ai secured a $13.2 million U.S. government contract for its J-35 ORION platform. Originally built for military force management and decision support, but it can be used for environmental risk analysis as well.
Pangiam Acquisition (2024)
BigBear.ai acquired Pangiam, a leader in biometric and edge-AI technology. Its tools are for biometric identity verification and secure access solutions.
FAA Biometric Deployments – Denver & Heathrow
BigBear.ai’s biometric tech is deployed at major airports, helping to reduce congestion and passenger dwell times. While aimed at improving security, the faster processing may also support the airport’s climate goals by lowering emissions at terminals.

The company also teamed up with Palantir to integrate its AI tools with Palantir’s Foundry platform, enabling even broader use in ESG monitoring and climate risk analytics. On top of these initiatives, BBAI is also working with its own environmental and climate goals.

BigBear.ai Charts a Path to Net Zero with Measured GHG Reductions

While BigBear.ai can help others in reaching their ESG goals, it has also committed to its own. The company aims to achieve net-zero greenhouse gas emissions by 2030.

The company’s 2022 Greenhouse Gas Emissions Report establishes a transparent baseline for its emissions and outlines a science-based strategy for reduction.

2022 Emissions Baseline

In calendar year 2022, BigBear.ai measured its Scope 1 and Scope 2 emissions across all company-leased and controlled facilities. The company calculated its emissions in accordance with the GHG Protocol Corporate Accounting and Reporting Standard, ensuring accuracy and comparability.

Total Scope 1 and 2 emissions amounted to approximately 1.628 metric tons of CO₂ equivalent. The primary sources were electricity used in commercial office spaces, employee business travel, and commuting.

A detailed breakdown shows that Scope 2 emissions (primarily from electricity consumption) accounted for 95% of the company’s total emissions. Meanwhile, Scope 1 emissions (mainly from fuel combustion and company-leased vehicles) made up the remaining 5%. Notably, BigBear.ai’s total energy consumption was already low, at just 0.1 GWh for the year.

BigBear.ai GHG emissions — Source: BigBear.ai report

Science-Based Reduction Targets

BigBear.ai is committed to further reducing its climate impact by setting annual reduction targets starting in 2023. The company’s strategy includes:

Eliminating certain real estate holdings to reduce Scope 2 emissions associated with office electricity use.
Phasing out all company-owned vehicles to eliminate Scope 1 emissions from transportation.

By focusing on these short- and mid-term actions, BigBear.ai aims to achieve net-zero emissions by 2030. The company’s analytical approach and transparent reporting position it as a responsible player in the tech sector’s transition to a low-carbon future.

Why Investors Are Watching BBAI Stock

BigBear.ai can be seen as a company positioned at the intersection of AI and sustainability. It has the potential to offer its AI infrastructure to support green initiatives across sectors.

The company is still sensitive to quarterly volatility due to its reliance on large government contracts, and analysts have flagged a low Altman Z-score (around 0.14), indicating potential financial risk. However, for long-term investors—particularly those focused on ESG—BigBear.ai’s sustainability goals and data-driven approach may offer unique upside as the company evolves.