Alphabet, Inc. (“Alphabet” or the “Company”) is a recognized leader in addressing climate change. In 2017, it became the ?rst major company to match 100 percent of its annual global electricity consumption with renewable energy, and it is pioneering 24/7 carbon free energy (CFE) – that is, matching its global electricity demand with clean energy around the clock.

In 2021, Alphabet announced it would reach net-zero greenhouse gas (GHG) emissions, reduce 50 percent of its operational and value chain emissions, and source 24/7 CFE for its worldwide operations by 2030.

In its 2023 10-K, Alphabet acknowledges that not meeting its goals creates signi?cant risk and states that “Any failure, or perceived failure…to meet evolving and varied stakeholder expectations and standards could harm our business, reputation, ?nancial condition, and operating results.”

Concerningly, Alphabet’s GHG emissions have ballooned, rising 13 percent higher in 2023 than the previous year and 48 percent higher than in 2019. The Company identi?es data centers hosting energy-intensive AI functions as the primary cause, noting their energy consumption is “outpacing” the Company’s ability to bring on clean energy projects.[1]

Despite continuing to develop clean energy projects, including a small modular nuclear reactor to be delivered by 2030, investors remain in the dark about the likelihood of Alphabet meeting its 2030 goals and, thus, would bene?t from enhanced disclosure, such as, for example:

A contingency plan including scenario analyses that analyzes factors that could negatively impact the Company’s emissions reduction progress.[2]

A stress test of Alphabet’s strategies for achieving its 2030 goals, assessing factors over which it has direct and indirect control. [3]

Identi?cation of anticipated emissions savings per strategy, such as the energy efficiency, renewable energy, and nuclear energy needed to support its climate goals.[4],[5],[6]

The Company’s anticipated emissions pathways to 2030 compared with the Intergovernmental Panel on Climate Change’s low- and no-overshoot 1.5 degrees Celsius- aligned pathways.[7]

Estimated metric tons of carbon removal required to compensate for Alphabet’s residual emissions.

By providing more transparency around its decarbonization planning, Alphabet can assure investors that it is prepared to meet its climate goals, thereby mitigating climate-related risks and upholding Alphabet’s reputation for climate leadership.