Majority of Independent Shareholders Call on Alphabet to Address Growing Water Risks
FOR IMMEDIATE RELEASE
MEDIA CONTACT: Stefanie Spear, [email protected], 216-387-1609
BERKELEY, CA—JUNE 7, 2022—Sixty-four percent of Alphabet Inc.'s independent shareholders (22.6% overall) voted in support of As You Sow’s water risk reduction proposal at the company’s annual general meeting last week.
The resolution asks Alphabet, the parent company of Google, to address water risk associated with climate change, especially at its water-thirsty data centers. The proposal seeks quantitative, location-specific water use information and company plans to reduce water-related risk.
Alphabet has a number of data centers that are fundamental to its business model. Collectively, data centers are among the top 10 water-consuming industries in the U.S. A typical data center uses 3-5 million gallons of water per day, according to Venkatesh Uddameri, professor and director of the Water Resources Center at Texas Tech University.
“Alphabet’s need for water resources is becoming increasingly contentious and fraught with risk due to drought, declining groundwater levels, and competing water demands,” said Danielle Fugere, president of As You Sow. “With this proposal, shareholders seek quantifiable information from Alphabet about the unique water-related risks to the company for the water-constrained locations in which it operates.”
Google operates in regions predicted to have high or extremely high water stress by 2030, including Storey County, Nevada and Changhua County, Taiwan. As water stress becomes more prevalent, Alphabet has faced greater competition for water resources, legal disputes, and higher costs. Google’s significant water use has already generated controversy across the U.S., including conflict with communities concerned about water depletion. The company has been at the center of disputes with local communities over how much water it proposes to use and its position that its water use is a proprietary “trade secret.” Google has gone so far as to attempt to prohibit local cities from disclosing the amount of its proposed water use through non-disclosure agreements and other legal mechanisms.
“By refusing to disclose water use metrics to the public, Alphabet is losing the trust of its investors and the communities in which it operates,” Fugere said.
Tech industry peers Microsoft and IBM report to CDP on water use and water risk, including disclosing the percent of water withdrawn from areas with water stress.
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As You Sow is the nation’s leading shareholder advocacy nonprofit, with a 30-year track record promoting environmental and social corporate responsibility and advancing values-aligning investing. Its issue areas include climate change, ocean plastics, pesticides, racial justice, workplace diversity, and executive compensation. Click here for As You Sow’s shareholder resolution tracker.