Google Inc. (Alphabet Inc.) | Report on water usage and AI development at Google Inc. (Alphabet Inc.)

Status
Filed
AGM date
Previous AGM date
Proposal number
6
Resolution details
Company ticker
GOOGL
Lead filer
Inspire Investing
Resolution ask
Report on or disclose
ESG theme
  • Environment
ESG sub-theme
  • Water and oceans
Filer type
Shareholder
Company sector
Technology
Company HQ country
United States
Resolved clause
Shareholders request that Alphabet Inc. prepare and publicly disclose a report, or disclose analysis which has already been performed, prepared at reasonable expense and omitting proprietary information, detailing how its water usage policies and practices align with its fiduciary duty to maximize long-term shareholder value, particularly in relation to sustaining brand growth and advancing artificial intelligence (AI) initiatives. The report/analysis should avoid non-fiduciary metrics and instead focus on operational efficiency, cost management, and risk mitigation relevant to financial performance.
Whereas clause
Alphabet’s leadership in AI and cloud computing depends on reliable access to water resources for cooling data centers and maintaining operational continuity. While some stakeholders advocate expansive, activist-dictated frameworks, these approaches often prioritize optics over outcomes, diverting attention from the company’s core obligation: delivering superior returns to shareholders. The demand for AI innovation presents tremendous demand1 for energy and natural resources, and shareholders must understand the methods and strategies companies employ to respond to said demands. Water scarcity poses a material risk to Alphabet’s infrastructure and brand reputation, with Alphabet’s sustainability reporting2 noting that “in 2024, 72% of our freshwater withdrawals came from sources at low risk of water depletion or scarcity.” Interruptions in data center operations could undermine AI development timelines, erode competitive advantage, and negatively impact revenue streams tied to Google Cloud and emerging AI products. Conversely, proactive, efficiency-driven water management3 strengthens Alphabet’s ability to scale AI responsibly while safeguarding profitability. As more and more companies move away from activist-driven timelines, Alphabet shareholders are right to ask the company for genuine clarity surrounding its water use, emphasizing a pragmatic, fiduciary approach: (1) quantifying financial exposure to water-related risks across global operations, (2) evaluating cost-effective technologies for water use and cooling efficiency that directly support AI infrastructure, and (3) assessing regional water constraints that could impact data center expansion and brand reliability. This is not a merely social point but a matter of brand value. Alphabet is one of the most valuable brands on earth, with its $900 billion brand value4 comprising roughly 30 percent of its almost $3 trillion market5 capitalization, meaning that resilience of Alphabet’s AI systems is critical for investors. Stewardship and prudent care regarding the externalities of AI innovation is a growing concern for investors of all backgrounds. By focusing on operational resilience and strategic resource allocation, Alphabet can protect shareholder interests while reinforcing its leadership in AI innovation. Transparent reporting on these measures will enable investors to evaluate how Alphabet management is (1) prioritizing capital efficiency, (2) practicing genuine stewardship of both environmental resources and enterprise value and risk adjusted growth, and (3) not engaging in activist-driven initiatives that dilute fiduciary responsibility. As the AI industry continues to grow, with Alphabet at the forefront, investors deserve clarity regarding these pertinent concerns, to ensure the company’s water usage and management strategy remains aligned with its core mission: delivering long-term value through technological leadership and disciplined resource management. https://www.aei.org/op-eds/why-the-ai-revolution-will-require-massive-energy-resources/ https://www.gstatic.com/gumdrop/sustainability/google-2025-environmental-report.pdf https://www.wsj.com/science/environment/ai-electricity-water-environmental-impact https://www.campaignlive.com/article/apple-leads-us-dominates-kantars-top-100-global-brands/1918351 https://finance.yahoo.com/quote/GOOG/

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