Alphabet CDP Climate Change Response 2018 · Alphabet CDP Climate Change Response 2018 5 Frequency...

Alphabet CDP Climate Change Response 2018 1

CDPResponseAlphabet,Inc.-ClimateChange2018C0.Introduction

C0.1

(C0.1)Giveageneraldescriptionandintroductiontoyourorganization.AsourfoundersLarryandSergeywroteintheoriginalfounders'letter,"Googleisnotaconventionalcompany.Wedonotintendtobecomeone."Thatunconventionalspirithasbeenadrivingforcethroughoutourhistory--inspiringustodothingslikerethinkthemobiledeviceecosystemwithAndroidandmaptheworldwithGoogleMaps.Aspartofthat,ourfoundersalsoexplainedthatyoucouldexpectustomake"smallerbetsinareasthatmightseemveryspeculativeorevenstrangewhencomparedtoourcurrentbusinesses."Fromthestart,thecompanyhasalwaysstrivedtodomore,andtodoimportantandmeaningfulthingswiththeresourceswehave.Alphabetisacollectionofbusinesses--thelargestofwhich,ofcourse,isGoogle.ItalsoincludesbusinessesthataregenerallyprettyfarafieldofourmainInternetproductssuchasAccess,Calico,CapitalG,GV,Nest,Verily,Waymo,andX.Wereportallnon-GooglebusinessescollectivelyasOtherBets.OurAlphabetstructureisabouthelpingeachofourbusinessesprosperthroughstrongleadersandindependence.Wehavealwaysbeenacompanycommittedtomakingbigbetsthathavethepotentialtoimprovethelivesofmillionsofpeople.Ourproductinnovationshavemadeourserviceswidelyused,andourbrandoneofthemostrecognizedintheworld.Butmostimportant,webelievewearejustbeginningtoscratchthesurface.Ourvisionistoremainaplaceofincrediblecreativityandinnovationthatusesourtechnicalexpertisetotacklebigproblems.AsthemajorityofAlphabet’sbigbetscontinuetoresidewithinGoogle,animportantbenefitoftheshifttoAlphabethasbeenthetremendousfocusthatwe’reabletohaveonGoogle’smanyextraordinaryopportunities.Wegeneraterevenueprimarilythroughonlineadvertising.Google’scoreproducts—Search,Android,Maps,Chrome,YouTube,GooglePlay,andGmail—eachhavemorethan1billionmonthlyactiveusers.Wealsoofferabroadcollectionofcloud-basedproductsandservices,includingGSuitebusinessproductivityappslikeDocs,Drive,andCalendarand


satellitemappingandanalysisplatformslikeGoogleEarthandGoogleEarthEngine.Inrecentyearswe’veexpandedintoconsumerelectronicswithproductsincludingGooglePixel,GooglePixelbook,GoogleHome,andChromecast.Google’smissiontoorganizetheworld’sinformationandmakeituniversallyaccessibleandusefulhasalwaysbeenourNorthStar,andourproductshavecomealongwaysincethecompanywasfoundednearlytwodecadesago.Webelievethattechnologyisademocratizingforce,empoweringpeoplethroughinformation.GooglewasincorporatedinCaliforniainSeptember1998andreincorporatedintheStateofDelawareinAugust2003.In2015,weimplementedaholdingcompanyreorganization,andasaresult,AlphabetInc.(Alphabet)becamethesuccessorissuertoGoogle.OurClassAcommonstockhasbeenlistedontheNasdaqGlobalSelectMarketunderthesymbol“GOOG”sinceAugust19,2004andunderthesymbol"GOOGL"sinceApril3,2014.OurClassCcapitalstockhasbeenlistedontheNasdaqGlobalSelectMarketunderthesymbol“GOOG”sinceApril3,2014.OurheadquartersarelocatedinMountainView,California.Wealsoownandleaseofficeandbuildingspaceinthesurroundingareasnearourheadquarters,whichintheaggregate(includingourheadquarters)representapproximately11.1millionsquarefeetofoffice/buildingspaceandapproximatelyforty-fiveacresofdevelopablelandtoaccommodateanticipatedfuturegrowth.Inaddition,weownandleaseoffice/buildingspaceandresearchanddevelopmentsites,aroundtheworld-primarilyinNorthAmerica,Europe,SouthAmerica,andAsia.WeownandoperatedatacentersintheU.S.,Europe,SouthAmerica,andAsia.AsofDecember31,2017,wehadmorethan$110billionintotalrevenuesand80,110full-timeemployees.Asusedherein,"Alphabet,""thecompany,""we,""us,""our,"andsimilartermsincludeAlphabetInc.anditssubsidiaries,unlessthecontextindicatesotherwise.Alphabet'sresponsestothisQuestionnairecontainprojections,futureestimates,plans,expectations,andotherforward-lookingstatementsthataresubjecttorisksanduncertainties.Readersarecautionednottoplaceunduerelianceontheseforward-lookingstatements.Forward-lookingstatementsarenotguaranteesoffutureperformanceandactualresultsmaydiffermateriallyfromthosereflectedintheforward-lookingstatementsforanumberofreasons,including,butnotlimitedto,risksdiscussedinAlphabet’sAnnualReportonForm10-Kandotherdocumentsitfileswiththe


SecuritiesandExchangeCommission.Alphabetundertakesnoobligationtocorrect,reviseorupdateanyinformationincludedinthisQuestionnaire.Anyfinancialprojectionsprovidedasexamplesareforillustrativepurposesonlyandarebaseduponcertainhypotheticalassumptionsthataresubjecttochange.C0.2

(C0.2)Statethestartandenddateoftheyearforwhichyouarereportingdata.

Startdate Enddate

Indicateifyouareprovidingemissionsdataforpastreportingyears

Selectthenumberofpastreportingyearsyouwillbeprovidingemissionsdatafor

Row1 January12017 December312017 No <FieldHidden>

C0.3

(C0.3)Selectthecountries/regionsforwhichyouwillbesupplyingdata.UnitedStatesofAmericaOther,pleasespecify(Restofworld)C0.4

(C0.4)Selectthecurrencyusedforallfinancialinformationdisclosedthroughoutyourresponse.USDC0.5

(C0.5)Selecttheoptionthatdescribesthereportingboundaryforwhichclimate-relatedimpactsonyourbusinessarebeingreported.NotethatthisoptionshouldalignwithyourconsolidationapproachtoyourScope1andScope2greenhousegasinventory.Operationalcontrol


C1.Governance

C1.1

(C1.1)Isthereboard-leveloversightofclimate-relatedissueswithinyourorganization?YesC1.1a

(C1.1a)Identifytheposition(s)oftheindividual(s)ontheboardwithresponsibilityforclimate-relatedissues.Positionofindividual(s) Pleaseexplain

ChiefFinancialOfficer(CFO)

Alphabet/Google'sCFOwasdesignatedresponsibilityforclimate-relatedissues,includingsigningoffonourCDPreport,asshehasvisibilityacrossallofthecompany'soperations.Primaryresponsibilityformanagingclimate-relatedissuesisdelegatedtoGoogle'sSustainabilityOfficer(GSO),whoreportsuptoourCFOandupdatesherasneeded.OurCFOmeetswithAlphabet'sboardofdirectorsregularlyandcanbringupclimate-relatedissuesonanas-neededbasis.Wealsohaveanon-independentinternalSustainabilityBoardfocusedonscalingsustainabilityimpactthroughstrategicalignment.Itincludesseniorexecutivesfromoperations,ethicsandcompliance,investorrelations,treasury,marketing,andlegal.ThisgroupischairedbyaFinancevicepresidentandmeetsonaquarterlybasistodiscuss,reviewandapproveclimate-relatedinitiatives,andtoproviderecommendationsandguidance.OurGSOleadsengagementwiththeSustainabilityBoardandreportstothemquarterly.

C1.1b

(C1.1b)Providefurtherdetailsontheboard’soversightofclimate-relatedissues.Frequencywithwhichclimate-relatedissuesareascheduledagendaitem

Governancemechanismsintowhichclimate-relatedissuesareintegrated Pleaseexplain

Scheduled–allmeetings

ReviewingandguidingriskmanagementpoliciesMonitoringandoverseeingprogressagainstgoalsandtargets

Climate-relatedissuesmaybeaddedtotheagendaformeetingsofAlphabet'sboardofdirectorsonanas-neededbasis.Climate-relatedissuesareintegratedintoourriskmanagementprocessandgoals/targets.Climate-relatedissuesareascheduledagendaitemforallmeetingsofGoogle'sSustainabilityBoard,whichmeetsonaquarterlybasis.ThroughtheSustainabilityBoard,climate-relatedrisksareintegratedintoour


Frequencywithwhichclimate-relatedissuesareascheduledagendaitem

Governancemechanismsintowhichclimate-relatedissuesareintegrated Pleaseexplain

foraddressingclimate-relatedissues

organizationalstrategy,plansofaction,managementpolicies,performanceobjectives;andhowwemonitorprogressagainsttargetsandgoals.

C1.2

(C1.2)Belowboard-level,providethehighest-levelmanagementposition(s)orcommittee(s)withresponsibilityforclimate-relatedissues.

Nameoftheposition(s)and/orcommittee(s) Responsibility

Frequencyofreportingtotheboardonclimate-relatedissues

ChiefSustainabilityOfficer(CSO) Bothassessingandmanagingclimate-relatedrisksandopportunities Quarterly

C1.2a

(C1.2a)Describewhereintheorganizationalstructurethis/theseposition(s)and/orcommitteeslie,whattheirassociatedresponsibilitiesare,andhowclimate-relatedissuesaremonitored.ThehighestlevelofdirectresponsibilityforclimatechangerestswiththeSeniorVicePresidentandChiefFinancialOfficerofAlphabetandGoogle,whohasdesignatedresponsibilityforclimate-relatedissuesasshehasvisibilityacrossallofthecompany'soperations.OurCFOisthefinalsign-offforAlphabet'sCDPclimatechangereport,whichsummarizesourassessmentandmanagementofclimate-relatedrisksandopportunities.TheAuditCommitteeoftheBoardofDirectorsoverseesandmonitorstherisksandexposuresassociatedwithouroperationalinfrastructure,particularlyreliability,businesscontinuity,capacityandsecurity,amongothermatters.OurCFOmeetswithAlphabet'sAuditCommitteeandBoardofDirectorsregularlyandcanraiseclimate-relatedissuesonan


as-neededbasis.Otherpeoplemayalsoberequestedtopresentclimate-relatedinformation.Forexample,Google'sSustainabilityOfficer(GSO)hasbeenrequestedtopresentinformationtotheauditcommitteeonoursustainabilityandclimatechangestrategy.Wealsohaveanon-independentinternalSustainabilityBoardfocusedonscalingsustainabilityimpactthroughstrategicalignment.Itincludesseniorexecutivesfromoperations(i.e.CloudandDevelopment,RealEstateandSecurity),products(i.e.HardwareandGoogleEarth),ethicsandcompliance,investorrelations,treasury,marketing,legal,andcommunications/policy.ThisgroupischairedbyaVicePresident,Finance,andmeetsonaquarterlybasistodiscuss,reviewandapproveclimate-relatedinitiatives,andtoproviderecommendationsandguidance.OurGSOleadsengagementwiththeSustainabilityBoardandreportstothemquarterly.Climate-relatedissuesareascheduledagendaitemfornearlyallmeetingsofGoogle'sSustainabilityBoard,whichmeetsonaquarterlybasis.ThroughtheSustainabilityBoard,climate-relatedrisksareintegratedintoourorganizationalstrategy,plansofaction,managementpolicies,performanceobjectives;andhowwemonitorprogressagainsttargetsandgoals.Primaryresponsibilityformanagingclimate-relatedissuesisdelegatedtoourGSO,whoreportsuptoourCFOandupdatesherasneeded.OurGSO’steamleadsmuchofAlphabet'sworkonassessingandmanagingclimate-relatedrisksandopportunities,includingprogramssuchascarbonaccounting,carbonoffsets,our10+yearcommitmenttocarbonneutrality,ourclimateresiliencestrategy(includingourclimatescenarioanalysis),andengagementwithemployeesonsustainabilityissues(i.e.ourannualGoogleGreenAwards,whichincludesacategoryforemployeesthathavereducedGoogle’senergyuseand/orcarbonfootprint).OurGSOleadscross-functionalstrategyandcollaborationofsustainabilityteamsacrossthecompany,includingteamssuchasrealestatesustainability,datacentersustainability,andconsumerhardwaresustainability,andtheleadsfortheseteamshaveadottedlinereporttoher.OurGSOfacilitatesamonthlymeetingof15+employeeswithkeysustainabilityleadershiprolesacrossvariousdepartments,includingdesignatedsustainabilityrepresentativesfromgroupssuchasGoogleEarthOutreach,policy,andCloudmarketing.Shealsocoordinatesdevelopmentandmonitoringofcompany-widesustainabilityobjectivesandtargets.Lastly,ourGSOengageswithgovernmentpolicy-makersatalocal,federal,andinternationallevelonsustainabilitytopicsasneededtosupporteffortsledbyourpolicyteam.Forexample,shehasengagedwiththeEuropeanCommissionandvariousfederalagenciesaboutGoogle’ssustainabilityinitiatives,aswellaswithmunicipalofficialsintheSanFranciscoBayAreaandothercitiesaboutclimateresilience.Forallofthereasonslistedabove,ourGSOiswellpositionedtoassessandmanageclimate-relatedissues.


Google’sSustainabilityOfficeralsohasadottedlinereporttoGoogle'sSeniorVicePresidentofTechnicalInfrastructure.Google'sSeniorVPofTechnicalInfrastructureisresponsiblefordatacenteroperations,inadditiontomanyotherresponsibilities.AsdatacenterpowerconsumptionisresponsibleforasignificantcomponentofAlphabet'scarbonfootprintandourenergybills,Google’sSeniorVPofTechnicalInfrastructurehasastronginterestinmeasuringandoffsettingourcarbonfootprint,aswellasinleadingGoogle’sworktopurchaserenewableenergyforouroperations.C1.3

(C1.3)Doyouprovideincentivesforthemanagementofclimate-relatedissues,includingtheattainmentoftargets?YesC1.3a

(C1.3a)Providefurtherdetailsontheincentivesprovidedforthemanagementofclimate-relatedissues.Whoisentitledtobenefitfromtheseincentives?Other,pleasespecify(DataCenterEngineer)TypesofincentivesMonetaryrewardActivityincentivizedEfficiencyprojectCommentThroughquarterlyindividual-andteam-leveltarget-setting,regularperformancereviews,andbonusprograms,performanceformanyemployeesistiedtomeetingtargetsrelatedtoenergyefficiency,reducedenergyuse,andincreasedrenewableenergyprocurement.

Whoisentitledtobenefitfromtheseincentives?EnergymanagerTypesofincentivesMonetaryreward


ActivityincentivizedEnergyreductionprojectCommentThroughquarterlyindividual-andteam-leveltarget-setting,regularperformancereviews,andbonusprograms,performanceformanyemployeesistiedtomeetingtargetsrelatedtoenergyefficiency,reducedenergyuse,andincreasedrenewableenergyprocurement.

Whoisentitledtobenefitfromtheseincentives?FacilitiesmanagerTypesofincentivesMonetaryrewardActivityincentivizedEfficiencytargetCommentThroughquarterlyindividual-andteam-leveltarget-setting,regularperformancereviews,andbonusprograms,performanceformanyemployeesistiedtomeetingtargetsrelatedtoenergyefficiency,reducedenergyuse,andincreasedrenewableenergyprocurement.

Whoisentitledtobenefitfromtheseincentives?Environment/SustainabilitymanagerTypesofincentivesPleaseselectActivityincentivizedEmissionsreductionprojectCommentThroughquarterlyindividual-andteam-leveltarget-setting,regularperformancereviews,andbonusprograms,performanceformanyemployeesistiedtomeetingtargetsrelatedtoenergyefficiency,reducedenergyuse,andincreasedrenewableenergyprocurement.

Whoisentitledtobenefitfromtheseincentives?PublicaffairsmanagerTypesofincentivesMonetaryreward


ActivityincentivizedBehaviorchangerelatedindicatorCommentThisencompassescommunications/marketing/publicaffairsmanagers.Throughquarterlyindividual-andteam-leveltarget-setting,regularperformancereviews,andbonusprograms,performanceformanyemployeesistiedtomeetingtargetsrelatedtoenergyefficiency,reducedenergyuse,andincreasedrenewableenergyprocurement.

Whoisentitledtobenefitfromtheseincentives?CorporateexecutiveteamTypesofincentivesMonetaryrewardActivityincentivizedEmissionsreductiontargetCommentForGoogle'sSeniorVPofTechnicalInfrastructure,amemberoftheCorporateExecutiveTeam,performancebonusesaretiedtomeetingquarterlytargetsforimprovingthesustainability/energyefficiencyofouroperations.

C2.Risksandopportunities

C2.1

(C2.1)Describewhatyourorganizationconsiderstobeshort-,medium-andlong-termhorizons.

From(years)

To(years) Comment

Short-term 1 8In2017,weconductedaPhase2assessmentofGoogle'sexposuretoclimaterisk,whichincorporatednear-termclimateprojections(2020/2025).Thisrepresenteda1to8yearshort-termtimehorizon.

Medium-term 9 34

In2016,weconductedaPhase1assessmentofGoogle'sexposuretoclimateriskinthemid-term(2050)andlong-term(2100).Thisrepresenteda9to34yearmedium-termtimehorizon.

Long-term 35 84In2016,weconductedaPhase1assessmentofGoogle'sexposuretoclimateriskinthemid-term(2050)andlong-term(2100).Thisrepresenteda35to84yearlong-termtimehorizon.

C2.2


(C2.2)Selecttheoptionthatbestdescribeshowyourorganization'sprocessesforidentifying,assessing,andmanagingclimate-relatedissuesareintegratedintoyouroverallriskmanagement.Integratedintomulti-disciplinarycompany-wideriskidentification,assessment,andmanagementprocessesC2.2a

(C2.2a)Selecttheoptionsthatbestdescribeyourorganization'sfrequencyandtimehorizonforidentifyingandassessingclimate-relatedrisks.

Frequencyofmonitoring

Howfarintothefuturearerisksconsidered? Comment

Row1

Six-monthlyormorefrequently >6years

Thescopeoftheprocessconsidersregulatoryrisksduetoclimatechangethatcouldincreaseenergycosts,acrossallofAlphabet'soperationsglobally.ResultsarereportedtoanindividualappointedbytheBoard(theChiefFinancialOfficerforAlphabetandGoogle).

C2.2b

(C2.2b)Providefurtherdetailsonyourorganization’sprocess(es)foridentifyingandassessingclimate-relatedrisks.OnbehalfofAlphabetandGoogle’sChiefFinancialOfficerandGoogle’sSeniorVPofTechnicalInfrastructure,Google’sSustainabilityOfficercollaborateswithriskmanagementandoperationsteamstoensurerisksandopportunitiesareevaluatedacrossthecompanyformitigationofandadaptationtoclimatechange.GeographicalareasconsideredinriskandopportunitiesmanagementincludeGoogle’sBayAreaheadquarters,itsmajorglobalofficeoperations,andits14globaldatacentersites.Resultsofriskandopportunityassessmentsarereportedtoacross-functionalgroupofkeyinternalstakeholders,includingexecutivesinoperationsandfinance.Theserisksandopportunitiesareprimarilyassessedatacompanylevelbymodelinglikelyfutureenergycostscenariosunderclimatechangeregulation,andapplyingthesescenariostoestimatethecostimpacttoouroveralloperations.Tomitigatetheserisks,welookforopportunitiestoprocurewholesalerenewableenergyvialong-termcontractswithstableprices,suchasthepowerpurchaseagreements(PPA)weworkhardtoprocure.


Risksandopportunitiesarealsoassessedatanassetlevelbyusingthesamemodels.Forexample,theriskandopportunityassessmentsatindividualdatacentersalsoincludesusingashadowpriceforcarbontoestimateexpectedfutureenergycosts.Forourglobalofficelocations,Googleassessesriskandopportunitybasedonspecificclimateriskfactors,whicharedetailedbelow.Thescopeoftheprocessconsidersregulatoryrisksduetoclimatechangethatcouldincreaseenergycosts,acrossallofAlphabet'soperationsglobally.ResultsarereportedtoanindividualappointedbytheBoard(theChiefFinancialOfficerforAlphabetandGoogle).Incollaborationwithexternalconsultantsandotherkeystakeholders,Google’sSustainabilityOfficerleddevelopmentofaclimateresiliencestrategy,includingaglobalassessmentoftheimpactsofsealevelrise,precipitation,temperature,andwaterstressonourmajorrealestateoperations(definedasourtop23sitesbyheadcount)and14datacentersitesandadeepdiveontheimpactsofclimatechangeonourBayAreaheadquarters.Thisincludedclimatescenarioanalysis.Wedeterminedclimateexposurebyassessingfuturechangestosealevelrise,precipitation,temperature,andwaterstress,asaresultofclimatechange.IncollaborationwiththeWorldResourcesInstitute(WRI),Googlecompletedawaterriskanalysisofthecurrentandfuturewaterstressateachofitsdatacentersandtopheadcountoffices.Theprocessforassessingpotentialsizeandscopeofidentifiedclimaterisks,andtheirrelativesignificance,isafocusforBayArearealestatedevelopment.Forexample,GoogleisengagedinalargescalemasterplaneffortinourMountainViewandSunnyvalelocations.Sealevelriseandfloodinghaveemergedascriticalclimaterisksthathaveamaterialimpacttophysicalassets,andhavebeenconsideredaspartoftheoveralldevelopmentstrategyforGoogle’sexpandingfootprint.Todeterminetherelativesignificanceofclimate-relatedrisksinrelationtootherrisks,weevaluateriskfromatriplebottomlineperspective,includingenvironment,financialandsocialimpacts.In2015,GoogledevelopedasetofPrinciplesofClimateResilience,whichsupportourdefinitionofclimateriskandresilience.TodefinethePrinciples,westartedbylookingattwoframeworks:theSanFranciscoEstuaryInstitute’sVisionforaResilientSiliconValleyLandscapeandtheRockefellerFoundation’sCityResilienceIndex(CRI).Wethenconvenedacross-functionalteamthatrepresentedthreedifferentpartsofthebusinessandarrivedatthefollowingprinciples,whichwillguidefuturedecision-makingonclimateresilience:

• SettingandContext:Theuniqueaspectsofgeographiclocationdetermineopportunitiesandconstraintsforaddressingresilience.


• Scale:Resilienceshouldbeoptimizedatallscales(building,campus,district,region).• Robust:Well-conceived,constructed,andmanagedsystemsimproveclimateresilienceatdifferentscales.• Integrated:Linkagesbetweendistinctsystemsandinfrastructureoptimizeoutcomesforresilience.• Redundant:Sparecapacitypromotesdiversityandcomplexity,andaccommodatesdisruption.• DiverseandComplex:RichnessandvarietyinthenetworkofsystemsandinfrastructurearecriticalforGoogleto

thrive.• People:Thepeoplewhosupport,shape,andsustainGooglearecentraltoresiliencestrategy.

Todefinesubstantivefinancialorstrategicimpactonourbusiness,Googleappliesaroughruleofthumbmeasureoffinancialmaterialitythatisapproximately$1billionannuallyattheP&Llevel.Formoreinformation,seethe2017StanfordSocialInnovationReviewarticle"ConnectingClimateResiliencetotheBottomLine"https://ssir.org/articles/entry/connecting_climate_resilience_to_the_bottom_lineC2.2c

(C2.2c)Whichofthefollowingrisktypesareconsideredinyourorganization'sclimate-relatedriskassessments?

Relevance&inclusion Pleaseexplain

Currentregulation

Relevant,alwaysincluded

WearecloselymonitoringstaterenewableportfoliostandardsintheUnitedStates.Weseethesepoliciesascriticaltohelpdrivelow-carbonpowersourcesinstateswherewehaveofficesanddatacenters.Recently,therehavebeeneffortstoweakenorrollbackthesestandardsinsomestates.Iftheyareweakened,itwillmakeitmoredifficultforGoogletomeetitsrenewableenergygoals.WearealsocloselymonitoringanExecutiveOrderthatdirectedtheEPAtoreviewtheCleanPowerPlan(CPP).WeconsidertheCPPanimportantpolicytobringrenewableenergyontothegrid,particularlyinmarketswherewehaveadatacenterpresencebuthavelimitedaccesstopurchaserenewables.ArollbackinstaterenewableportfoliostandardsortheEPACleanPowerPlanwouldmakeitmoredifficultforGoogletomeetitsrenewableenergygoalsbydecreasingaccesstorenewableenergyinstateswhereweoperate.Thiswouldmeanwewouldhavetofindotheralternativestoprocurerenewablepower,whicharelikelytobemoreexpensivethantakingitdirectlyfromthegrid.

Emergingregulation


Wehaveveryfewdirectemissionsofgreenhousegases,thereforewedonotexpectouroperationstobedirectlyimpactedbyclimatepolicyintheUS,nordoweexpecttoparticipateinanycurrentorfuturecompliancemarketsforcarbontradingintheUS.Googledoes,however,facetheriskofincreasedcostsofenergyifapriceoncarbonisappliedthroughlegislationsuchascapandtrade(orothermechanismssuchastaxation).Totheextentthatthispriceispassedontousfromaregulatedentity,thecostofrunningouroperationswillincrease.However,wealreadyoperatesomeofthemostefficientdatacentersintheworld,procurerenewablepowerforourdatacenters,andgenerateonsiterenewableenergyatseveralofouroffices,allofwhichreduceour



exposuretothisrisk.Inaddition,wealreadyincludeashadowpriceforcarboninourdatacentersitinganalysissowetakethisriskintoaccountevenbeforewebuildadatacenter.Finally,wearecarbon-neutralthroughthepurchaseofhigh-qualitycarbonoffsets,soineffect,wealreadyincludeacarbonpriceinouroperations.Ifacarbonpriceofe.g.$14/metrictonnewereestablishedthroughregulation(priceofcarbon/tonneatAB32AuctioninMay2014),thiscouldincreaseourcostsby~$8M[=(2017Scope1+market-basedScope2)*$14],assumingthesecostswerepassedthroughtoelectricityconsumersandwewerenotfurtherabletoreduceourcarbonfootprint.Thefinancialimpactwouldlikelybelessaswealreadyvoluntarilypurchasecarbonoffsets.

Technology

Notrelevant,explanationprovided

Google’scoreproducts—Search,Android,Maps,Chrome,YouTube,GooglePlay,andGmail—arenottechnologiesthatsupportthetransitiontoalower-carbon,energyefficientsystem.

Legal

Notrelevant,explanationprovided

Alphabetisacollectionofbusinesses--thelargestofwhich,ofcourse,isGoogle.ItalsoincludesbusinessesthataregenerallyprettyfarafieldofourmainInternetproductssuchasAccess,Calico,CapitalG,GV,Nest,Verily,Waymo,andX.Basedoncurrentclimate-relatedlitigation,wedon'tbelievethatAlphabet'sindustry—internetservices—isonewithsignificantrisk.

Market

Relevant,sometimesincluded

Google'srevenueislargelybasedonadvertising.Advertisersadvertisetousersbecausetheybelievetheusersareinapositiontobecomecustomersviaaneconomictransactionasaresultoftheadvertisement.AdvertiserspayGooglefortheabilitytoadvertiseviaouronlineproperties.Fluctuatingsocio-economicconditionsduetoclimatechangecouldhaveanegativeimpactonGoogle'srevenueiftheycauseuserstoreducetherateofeconomictransactionsandthuscausesadvertiserstodemandlessonlineadvertising.Itisdifficulttopredictthemagnitudeofthisrisk,giventheindirectnatureoftherelationshipbetweenclimatechangeandonlineconsumereconomicactivity.Thatsaid,wegenerated87%($95,375,000,000)oftotalGooglesegmentrevenuesfromadvertisingin2017.If,forexample,allonlineeconomicactivitydecreasedby1%,wecouldexperienceacommensuratereductioninourshareofthisactivity.

Reputation


DisclosingandproperlyaddressingclimatechangerisksandimpactsassociatedwiththeITindustryandproliferationofthecloudisbecomingmoreandmoreimportant.Notonlydoesacompanyneedtospeaktotheeffortsthey'remaking,theyalsoneedtoshowthroughtheiractionsthattheyaremakingimprovementsortakingmitigationmeasures.Notaddressingclimatechangerisksandimpactsheadoncouldresultinareduceddemandforourgoodsandservicesbecauseofnegativereputationimpact.The2017BestGlobalBrandsreport,producedindependentlybyInterbrand,ranksGoogleasthesecondmostvaluableglobalbrand.Negativereputationcouldresultinadecreaseinbrandvalueandinalossoffuturebrandequity.Thisriskdrivercouldhaveanegativeimpactonourbrands.Forexample,the2017BestGlobalBrandsreport,producedindependentlybyInterbrand,estimatesGoogle'sbrandvalueatapproximately$142billion.UsingInterbrand'sestimatedbrandvalue,ahypotheticalreputationalriskresultingina0.1%decreaseinbrandvaluecouldresultinalossoffuturebrandequityofapproximately$142million.Itisverydifficulttopredictthemagnitudeorpotentialoccurrenceofthisrisk,giventheindirectnatureoftherelationshipbetweenclimatechangeandonlineconsumereconomicactivity.

Acutephysical


WeconductedanassessmentofGoogle'sexposuretoclimateriskinthenear-term(2020-2025),mid-term(2050),andlong-term(2100).Thisincludedaglobalassessmentoftheimpactofsealevelrise,precipitation(flooding),precipitation(drought),temperatureandwaterstressonourrealestateoperations.Basedonthisassessment,wefoundourbiggestrisktobefloodingatourBayAreaheadquarters.



Chronicphysical


Wemustcoolourdatacenterstokeeptheminoperation,andtheamountofenergyneededtocoolthemisrelatedtotheoutsideairtemperature.Ifglobaltemperaturesincrease,thiswillincreasetheamountofenergyrequiredtocoolourdatacentersandincreasethecostofrunningouroperations.Giventhatclimatechangeisexpectedtoincreaseaveragetemperaturesgloballyandwehavefacilitiesandoperationsaroundtheworld,thisisariskwefaceatallofourfacilitiesglobally.Inparticular,thismayimpactourdatacenterslocatedinwarmclimates,suchasourdatacenterinSingapore.AsofDec.31,2017,Googleownedandoperated14largedatacentersacrossNorthAmerica,SouthAmerica,Europe,andAsia.Tolearnmoreaboutourdatacentersandtheirlocations,see:https://www.google.com/about/datacenters/inside/locations/index.htmlIngeneral,weexpectthatourcoolingcostswillgoupproportionatelytotheincreaseincooling-degree-daysduetoincreasingaveragetemperatures.Wearenotabletopredicttheexacttemperatureincrease,butif,forexample,thenumberofcooling-degree-daysincreasedby10%,wewouldexpecta10%riseinourcoolingcosts,assumingwewerenotfurtherabletoimproveourenergyefficiency.Thiswouldhavealow-mediumnegativefinancialimpact.

Upstream


Inoursupplychain,GoogleemploysaSupplierCodeofConductandevaluatestheriskofdoingbusinesswithindividualsuppliers,whichincludesconsiderationsofclimateriskandconductingsustainablesupplychainaudits.TheSupplierCodeofConductstipulatesthatoursuppliersrequiretheirsupplierstofollowthesamerequirements,whichflowsourrequirementsupthesupplychain.

Downstream


Googlefacestheriskofincreasedcostsofenergyifapriceoncarbonisappliedthroughlegislationsuchascapandtrade(orothermechanismssuchastaxation).Whiletheregulatoryrisktoourbusinessissmall,weareminimizingourexposuretothisriskbyworkingtorunthemostefficientcomputerinfrastructureintheworld.Throughefficiencyinnovations,wehavemanagedtocutenergyusageinourdatacenterssothatwe'reusingsignificantlylessenergythantheindustryaverage.Forexample,in2017,weachievedPUEs(powerusageeffectivenessratios)aslowas1.08,comparedwiththeindustryaverageof1.58.Bymakingourproductsandservicesmoreefficientandmatchingelectricityusewithrenewableenergy,Googleiscreatinganalternativesolutionforbusinessthatwillbebeneficialshouldregulationcomeforth,allowingourcustomerstohedgeagainstfutureenergycosts.

C2.2d

(C2.2d)Describeyourprocess(es)formanagingclimate-relatedrisksandopportunities.OnbehalfofAlphabetandGoogle’sChiefFinancialOfficerandGoogle’sSeniorVPofTechnicalInfrastructure,Google’sSustainabilityOfficercollaborateswithriskmanagementandoperationsteamstoensurerisksandopportunitiesareevaluatedacrossthecompanyformitigationofandadaptationtoclimatechange.GeographicalareasconsideredinriskandopportunitiesmanagementincludeGoogle’sBayAreaheadquarters,itsmajorglobalofficeoperations,andits14siteswithoperatingdatacenters.Resultsofriskandopportunityassessmentsarereportedtoacross-functionalgroupofkeyinternalstakeholders,includingexecutivesinoperationsandfinance.


Theserisksandopportunitiesareprimarilyassessedatacompanylevelbymodelinglikelyfutureenergycostscenariosunderclimatechangeregulation,andapplyingthesescenariostoestimatethecostimpacttoouroveralloperations.Tomitigatetheserisks,welookforopportunitiestoprocurewholesalerenewableenergyvialong-termcontractswithstableprices,suchasthepowerpurchaseagreements(PPA)weworkhardtoprocure.In2017,Googleenteredinto6morelong-termrenewableenergyagreementswhich,togetherwithourexistinglong-termcontracts,providenearly3GWofclean,renewableenergythatisnewtothegrid.ThismakesGooglethelargestcumulativecorporatepurchaserofrenewableenergyontheplanet.Risksandopportunitiesarealsoassessedatanassetlevelbyusingthesamemodelsappliedtobothtransitionrisksandphysicalrisks.Forexample,fromatransitionriskperspective,theriskandopportunityassessmentsatindividualdatacentersalsoincludesusingashadowpriceforcarbontoestimateexpectedfutureenergycosts.Fromaphysicalriskperspective,whenwelaunchedGoogle’sEcologyProgramin2014,ourgoalwasecologicalresilience.Weincorporatedcutting-edgescienceanddatafromtheonset,sponsoringtheSanFranciscoEstuaryInstitute(SFEI)tocreatetheLandscapeResilienceFrameworkforecologicalplanningintheregion.Wealsoengagedwithoutsideecologists,landscapearchitects,planners,andlocalnongovernmentalorganizationstoensurethatouroutdoorenvironmentswouldenhancetheregion’sexistingecologyovertime.Together,wefocusedonthefollowingobjectives:expandingwildlifehabitat,creatingdiverselandscapesthatcanwithstandthestressesofclimatechange,andrestoringmanyoftheecologicalfunctionslostwiththedevelopmentofofficeparksacrosstheValley.Beyondthis,we'reworkingacrossthecompanytointegratesustainabilityvaluesandcultureintoday-to-dayoperations.We’vepushedGoogledatacenterstomakethemsomeofthemostefficientintheworld,improvingtheirenvironmentalperformanceevenasdemandforourproductshasdramaticallyrisen.Google'sglobalofficestakeactiontomitigateclimatechangebyleveragingourSustainableOperationsProgram.Inoursupplychain,GoogleemploysaSupplierCodeofConductandevaluatestheriskofdoingbusinesswithindividualsuppliers,whichincludesconsiderationsofclimateriskandconductingsustainablesupplychainaudits.Toprioritizeeachriskandopportunityidentified,weconsiderthreekeyfactors:itspotentialimpactonourfinancialbottomline,itspotentialimpacttoourcompany'sreputation,andprogresstowardsourrenewableenergyandgreenhousegasemissionsreductiontargets.Weweightheseandotherfactorsonacasebycasebasis,dependingontherisk/opportunitybeingprioritized.


Forexample,therearemanyelementsweconsiderindecidingwhereandhowtopursuerenewableenergysupplycontracts,includingtheemissionsreductionpotentialofsourcingrenewableenergybyavoidingelectricitywithahighcarbonintensityandwhetherrenewableenergycanbeeconomicalinthelongterm.Regardingenergycostsspecifically,weevaluatethenetpresentvalueofenteringintoarenewableenergysupplycontractbycomparingthebusiness-as-usualscenariotoenergycostsunderthelong-termrenewableenergyscenario.Ifwefindthatrenewableenergywillsignificantlyreducethecarbonintensityofourelectricitysupplyandbemoreeconomical,theseareveryimportantinputstoidentifyaprojectasanopportunityaswellastodecidewhetherornottoenterintoalong-termcontract.Long-termrenewableenergycontractsareoneofthemostimportanttoolswehaveinmitigatingriskandprovidingopportunitywithrespecttoclimatechange,becausetheycanreduceemissionswhilekeepingenergycostsknownandmanageable.C2.3

(C2.3)Haveyouidentifiedanyinherentclimate-relatedriskswiththepotentialtohaveasubstantivefinancialorstrategicimpactonyourbusiness?YesC2.3a

(C2.3a)Providedetailsofrisksidentifiedwiththepotentialtohaveasubstantivefinancialorstrategicimpactonyourbusiness.IdentifierRisk1Whereinthevaluechaindoestheriskdriveroccur?CustomerRisktypeTransitionriskPrimaryclimate-relatedriskdriverPolicyandlegal:IncreasedpricingofGHGemissionsTypeoffinancialimpactdriverPolicyandlegal:Increasedoperatingcosts(e.g.,highercompliancecosts,increasedinsurancepremiums)Company-specificdescription


Wehaveveryfewdirectemissionsofgreenhousegases,thereforewedonotexpectouroperationstobedirectlyimpactedbyclimatepolicyintheUS,nordoweexpecttoparticipateinanycurrentorfuturecompliancemarketsforcarbontradingintheUS.Runningourbusinessrequiresustousealotofelectricitytopowerourdatacenters,offices,andotherinfrastructure.In2017,ourtotalenergyconsumptionwas8,029,409MWh.Therefore,Googledoesfacetheriskofincreasedcostsofenergyifapriceoncarbonisappliedthroughlegislationsuchascapandtrade(orothermechanismssuchastaxation).Totheextentthatthispriceispassedontousfromaregulatedentity,thecostofrunningouroperationswillincrease.However,wealreadyoperatesomeofthemostefficientdatacentersintheworld,procurerenewablepowerforourdatacenters,andgenerateonsiterenewableenergyatseveralofouroffices,allofwhichreduceourexposuretothisrisk.Inaddition,wealreadyincludeashadowpriceforcarboninourdatacentersitinganalysissowetakethisriskintoaccountevenbeforewebuildadatacenter.Finally,wearecarbon-neutralthroughthepurchaseofhigh-qualitycarbonoffsets,soineffect,wealreadyincludeacarbonpriceinouroperations.TimehorizonShort-termLikelihoodUnlikelyMagnitudeofimpactLowPotentialfinancialimpact8000000ExplanationoffinancialimpactIfacarbonpriceofe.g.$14/metrictonnewereestablishedthroughregulation(priceofcarbon/tonneatAB32AuctioninMay2014),thiscouldincreaseourcostsby~$8M[=(2017Scope1+market-basedScope2)*$14],assumingthesecostswerepassedthroughtoelectricityconsumersandwewerenotfurtherabletoreduceourcarbonfootprint.Thefinancialimpactwouldlikelybelessaswealreadyvoluntarilypurchasecarbonoffsets.ManagementmethodWhiletheregulatoryrisktoourbusinessissmall,weareminimizingourexposuretothisriskbyworkingtorunthemostefficientcomputerinfrastructureintheworld.Throughefficiencyinnovations,wehavemanagedtocutenergyusageinourdatacenterssothatwe'reusingsignificantlylessenergythantheindustryaverage.Forexample,in2017,weachievedPUEs(powerusageeffectivenessratios)aslowas1.08,comparedwiththeindustryaverageof1.58.Weachievedthisthroughtheuseofincreasinglyefficientpowersupplies,evaporativecoolingtechnology,machinelearningandotherinnovations.Anadditionalriskmitigationactivityisourworktoprocurewholesalerenewableenergyforouroperationsvialong-termcontractswithstableprices.In2017,weannounced6morerenewableenergycommitmentstoprocure574additionalMWofwindandsolarpowerinOklahoma,Iowa,SouthDakota,theNetherlands.


Costofmanagement0CommentThoughthereisanup-frontcapitalcostassociatedwithourdatacenterefficiencyimprovements,theseprojectshavefinancialpaybacksbecausetheyimproveourenergyefficiencyandthusreduceouroperationalcosts.Sofromanetpointofview,theseimprovementscomeatzeronetcost,soourcostofmanagementis$0.

IdentifierRisk2Whereinthevaluechaindoestheriskdriveroccur?DirectoperationsRisktypeTransitionriskPrimaryclimate-relatedriskdriverPolicyandlegal:OtherTypeoffinancialimpactdriverPolicyandlegal:Increasedoperatingcosts(e.g.,highercompliancecosts,increasedinsurancepremiums)Company-specificdescriptionWearecloselymonitoringopportunitiesforcorporateenduserstopurchaserenewableenergy,aswellasstaterenewableportfoliostandards.Weseethesepoliciesascriticaltohelpdrivelow-carbonpowersourcesinstateswherewehaveofficesanddatacenters.Iftheyareweakened,itwillmakeitmoredifficultforGoogletomeetitsrenewableenergygoals.WearealsocloselymonitoringanExecutiveOrderthatdirectedtheEPAtoreviewtheCleanPowerPlan(CPP).WeconsidertheCPPanimportantpolicytobringrenewableenergyontothegrid,particularlyinmarketswherewehaveadatacenterpresencebuthavelimitedaccesstopurchaserenewables.TimehorizonShort-termLikelihoodMorelikelythannotMagnitudeofimpactMediumPotentialfinancialimpact0Explanationoffinancialimpact


Aneliminationofpoliciesthatenablecorporateenduserstopurchasecleanenergy,arollbackinstaterenewableportfoliostandards,orarollbackoftheEPACleanPowerPlanwouldmakeitmoredifficultforGoogletomeetitsrenewableenergygoalsbydecreasingaccesstorenewableenergyinstateswhereweoperate.Thiswouldmeanwewouldhavetofindotheralternativestoprocurerenewablepower,whicharelikelytobemoreexpensivethantakingitdirectlyfromthegrid.ManagementmethodWehavebeenworkingdirectlywithfederalandstatepolicymakers,NGOs,andothersinindustrytoprovidesupportforthesepolicies.Costofmanagement0CommentThecostsofthisengagementareheadcountonourpublicpolicyteam,travelcostsfortripstostateswhererenewableportfoliostandardsareunderattack,andduespaidtonationaltradeorganizations.

IdentifierRisk3Whereinthevaluechaindoestheriskdriveroccur?DirectoperationsRisktypePhysicalriskPrimaryclimate-relatedriskdriverChronic:RisingmeantemperaturesTypeoffinancialimpactdriverIncreasedoperatingcosts(e.g.,inadequatewatersupplyforhydroelectricplantsortocoolnuclearandfossilfuelplants)Company-specificdescriptionWemustcoolourdatacenterstokeeptheminoperation,andtheamountofenergyneededtocoolthemisrelatedtotheoutsideairtemperature.Ifglobaltemperaturesincrease,thiswillincreasetheamountofenergyrequiredtocoolourdatacentersandincreasethecostofrunningouroperations.Giventhatclimatechangeisexpectedtoincreaseaveragetemperaturesgloballyandwehavefacilitiesandoperationsaroundtheworld,thisisariskwefaceatallofourfacilitiesglobally.Inparticular,thismayimpactourdatacenterslocatedinwarmclimates,suchasourdatacenterinSingapore.AsofDec.31,2017,Googleownedandoperated14largedatacentersacrossNorthAmerica,SouthAmerica,Europe,andAsia.Tolearnmoreaboutourdatacentersandtheirlocations,see:https://www.google.com/about/datacenters/inside/locations/index.html


TimehorizonMedium-termLikelihoodVerylikelyMagnitudeofimpactMedium-lowPotentialfinancialimpact0ExplanationoffinancialimpactIngeneral,weexpectthatourcoolingcostswillgoupproportionatelytotheincreaseincooling-degree-daysduetoincreasingaveragetemperatures.Wearenotabletopredicttheexacttemperatureincrease,butif,forexample,thenumberofcooling-degree-daysincreasedby10%,wewouldexpecta10%riseinourcoolingcosts,assumingwewerenotfurtherabletoimproveourenergyefficiency.Thiswouldhavealow-mediumnegativefinancialimpact.ManagementmethodWhiletherisktoourbusinessislow-medium,weareminimizingourexposuretothisrisk(aswellasregulatoryrisk)byworkingtorunthemostefficientcomputerinfrastructureintheworld.Throughefficiencyinnovations,we'vecutenergyusageinourdatacenterssothatwe'reusingsignificantlylessenergythantheindustryaverage.Forexample,in2017,weachievedPUEs(powerusageeffectivenessratios)aslowas1.08,comparedwiththeindustryaverageof1.58.Weachievedthisthroughtheuseofincreasinglyefficientpowersupplies,evaporativecoolingtechnology,machinelearningandotherinnovations.Inaddition,becauseourdatacentersarelocatedaroundtheworld,weminimizetheriskthatanunusuallylargeincreaseinaparticularregion'stemperaturewouldforceustoincreaseenergyuseandemissionsinthemostvulnerablelocationsorincreaseourcostsdisproportionatelycomparedtotheaverageglobaltemperatureincrease.Costofmanagement0CommentThoughthereisanupfrontcapitalcostassociatedwithourdatacenterefficiency(andspecificallycoolingefficiency)improvements,theseprojectshavefinancialpaybacksbecausetheyimproveourenergyefficiency,reduceouremissions,andreduceouroperationalcosts.

IdentifierRisk4Whereinthevaluechaindoestheriskdriveroccur?


DirectoperationsRisktypeTransitionriskPrimaryclimate-relatedriskdriverReputation:IncreasedstakeholderconcernornegativestakeholderfeedbackTypeoffinancialimpactdriverReputation:Reducedrevenuefromdecreaseddemandforgoods/servicesCompany-specificdescriptionDisclosingandproperlyaddressingclimatechangerisksandimpactsassociatedwiththeITindustryandproliferationofthecloudisbecomingmoreandmoreimportant.Notonlydoesacompanyneedtospeaktotheeffortsthey'remaking,theyalsoneedtoshowthroughtheiractionsthattheyaremakingimprovementsortakingmitigationmeasures.Notaddressingclimatechangerisksandimpactsheadoncouldresultinareduceddemandforourgoodsandservicesbecauseofnegativereputationimpact.The2017BestGlobalBrandsreport,producedindependentlybyInterbrand,ranksGoogleasthesecondmostvaluableglobalbrand.Negativereputationcouldresultinadecreaseinbrandvalueandinalossoffuturebrandequity.TimehorizonMedium-termLikelihoodAboutaslikelyasnotMagnitudeofimpactMediumPotentialfinancialimpact142000000ExplanationoffinancialimpactThisriskdrivercouldhaveanegativeimpactonourbrands.Forexample,the2017BestGlobalBrandsreport,producedindependentlybyInterbrand,estimatesGoogle'sbrandvalueatapproximately$142billion.UsingInterbrand'sestimatedbrandvalue,ahypotheticalreputationalriskresultingina0.1%decreaseinbrandvaluecouldresultinalossoffuturebrandequityofapproximately$142million.Itisverydifficulttopredictthemagnitudeorpotentialoccurrenceofthisrisk,giventheindirectnatureoftherelationshipbetweenclimatechangeandonlineconsumereconomicactivity.ManagementmethodWecontinuallystrivetomakeourprocessesmoreefficientandreduceourimpactontheenvironment,therebyhelpingourcustomersreducetheirfootprintaswellbychoosingourproductsandservices.Forexample,everyday,peoplearesavingtimeandmoneywithGoogleMaps-andgettingwheretheyneedtobe-allwhileminimizingtheirimpactonthe


environment.Googlealsoworkstoacceleratethedevelopmentofrenewableenergy,notonlybyprocuringrenewableenergyforouroperations,butalsothroughrenewableenergyinvestments.Onthedatacenterside,forover10years,we'vebeenbuildingandrunningsomeofthemostefficientdatacentersintheworld.ThroughwhitepapersandpostsonourEnvironmentblogweworktoestablishtransparencytohelpothersdothesame.Forexample,in2014,wepublishedawhitepaperonmachinelearninganddatacenteroptimization:http://static.googleusercontent.com/media/www.google.com/en/us/about/datacenters/efficiency/internal/assets/machine-learning-applicationsfor-datacenter-optimization-finalv2.pdfIn2017,weenteredinto6morelong-termrenewableenergyagreementswhich,togetherwithourexistinglong-termcontracts,providenearly3GWofclean,renewableenergy.Costofmanagement0CommentThecostsassociatedwithproperlyaddressingclimatechangerisksandimpactsarethestafftimetocreateandmanagetheassociatedprojects.

IdentifierRisk5Whereinthevaluechaindoestheriskdriveroccur?DirectoperationsRisktypeTransitionriskPrimaryclimate-relatedriskdriverMarket:ChangingcustomerbehaviorTypeoffinancialimpactdriverMarket:Reduceddemandforgoodsand/orservicesduetoshiftinconsumerpreferencesCompany-specificdescriptionGoogle'srevenueislargelybasedonsearchadvertising.Advertisersadvertisetousersbecausetheybelievetheusersareinapositiontobecomecustomersviaaneconomictransactionasaresultoftheadvertisement.AdvertiserspayGooglefortheabilitytoadvertiseviaouronlineproperties.Fluctuatingsocio-economicconditionsduetoclimatechangecouldhaveanegativeimpactonGoogle'srevenueifitcausesuserstoreducetherateofeconomictransactionsandthuscausesadvertiserstodemandlessonlineadvertising.TimehorizonMedium-term


LikelihoodUnlikelyMagnitudeofimpactMediumPotentialfinancialimpact953750000ExplanationoffinancialimpactFluctuatingsocio-economicconditionscouldhaveanegativeimpactonGoogle'srevenueiftheycauseuserstoreducetherateofeconomictransactionsandthuscauseadvertiserstodemandlessonlineadvertising.Itisdifficulttopredictthemagnitudeofthisrisk,giventheindirectnatureoftherelationshipbetweenclimatechangeandonlineconsumereconomicactivity.Thatsaid,wegenerated87%($95,375,000,000)oftotalGooglesegmentrevenuesfromadvertisingin2017.If,forexample,allonlineeconomicactivitydecreasedby1%,wecouldexperienceacommensuratereductioninourshareofthisactivity.ManagementmethodSinceavoidingorminimizingclimatechangewouldreducethisrisk,activitiestopromote&advocateforcleanenergyhelptominimizethisrisk.Weactivelyengagewithpolicymakerstosupportlocal,regional,national,andinternationalpoliciestoreducedependenceoncarbonintensivepowerandsupportcleanenergydeployment.Forexample,GoogleengagedinanumberofactivitiestoadvocateforastrongagreementattheUnitedNationsFrameworkConventiononClimateChange(UNFCCC)twenty-firstannualConferenceoftheParties(COP21),whichtookplacefromNovember30thtoDecember11th,2015inParis.Wecontinuedtoengageoncleanenergypolicyin2016and2017.Costofmanagement1500000CommentThecostsassociatedwithourriskmanagementdescribedherearestafftimetoconducttheseadvocacyactivities,industrymemberships,grantsandresearchanalysis.Weestimatethistobea$1-2million/yearrecurringoperatingexpense.

IdentifierRisk6Whereinthevaluechaindoestheriskdriveroccur?DirectoperationsRisktypePhysicalrisk


Primaryclimate-relatedriskdriverAcute:IncreasedseverityofextremeweathereventssuchascyclonesandfloodsTypeoffinancialimpactdriverIncreasedcapitalcosts(e.g.,damagetofacilities)Company-specificdescriptionWeconductedanassessmentofGoogle'sexposuretoclimateriskinthenear-term(2020-2025),mid-term(2050),andlong-term(2100).BasedonRCP4.5and8.5,theSanFranciscoBayAreaisprojectedtoexperiencesealevelrisebetween18.5-26.0inchesbytheendofthecentury.EventhoughthelocationofGoogle’sBayAreaheadquartersisnotprojectedtoexperiencethehighestlevelofsealevelrisewhencomparedtotheotherGooglesitesassessedaspartofthisstudy,thelocationofthebuildingsinMountainView,Sunnyvale,andPaloAltoandtheimportanceofthesesitesasGoogle’sglobalheadquartersplacesthosefacilitiesataparticularlyhighriskwhenmappedagainstanticipatedsealevelrise.ManyofGoogle’sbuildingsintheselocationsarelocatedinthecurrent100-yearfloodplainand,therefore,areatrisktoimpactsfromcoastalfloodinginthepresentday.Thoseriskswillonlybefurtherexacerbatedbysealevelrisethroughoutthecentury.CoastalfloodingcausedbyrisingsealevelscouldhavethefollowingimpactsonGoogle'sfacilitiesandoperations:1)FloodimpactstoGoogle’sbuildingscouldresultindamagetothestructure,buildingequipment,andcontents,aswellaspotentialriskstoemployeesafety,2)Floodimpactstomajorroadwaysandothertransportationroutesmayimpacttheabilityofemployeestogettowork,3)Onamoreglobalscale,sealevelriseandcoastalfloodingcouldimpactGoogle’sglobalsupplychainsandbusinessoperations.TimehorizonLong-termLikelihoodLikelyMagnitudeofimpactMediumPotentialfinancialimpact1000000000ExplanationoffinancialimpactWearestillanalyzingthefinancialimpactofthisrisk.Todefinesubstantivefinancialorstrategicimpactonourbusiness,Googleappliesaroughruleofthumbmeasureoffinancialmaterialitythatisapproximately$1billionannuallyattheP&Llevel.ManagementmethodWeareactivelyevaluatingclimateriskovermultipletimehorizons.Whilewearestilldevelopingamethodofmanagingclimateriskacrossourglobalfootprint,wehavedevelopedaprocessforourBayAreaheadquarters.Forexample,


Googleisengagedinalarge-scalemasterplaneffortforourMountainViewandSunnyvalelocations,whicharebothinCalifornia.Sealevelriseandfloodinghaveemergedascriticalclimaterisksthatcanhaveamaterialimpactonphysicalassets,andhavebeenconsideredaspartoftheoveralldevelopmentstrategyforGoogle’sexpandingfootprintinthearea.Todetermineandmanagetherelativesignificanceofclimate-relatedrisksinrelationtootherrisks,wehaveevaluatedriskfromatriplebottomlineperspective,includingenvironment,financialandsocialimpacts.Costofmanagement0Comment

C2.4

(C2.4)Haveyouidentifiedanyclimate-relatedopportunitieswiththepotentialtohaveasubstantivefinancialorstrategicimpactonyourbusiness?YesC2.4a

(C2.4a)Providedetailsofopportunitiesidentifiedwiththepotentialtohaveasubstantivefinancialorstrategicimpactonyourbusiness.IdentifierOpp1Whereinthevaluechaindoestheopportunityoccur?CustomerOpportunitytypeProductsandservicesPrimaryclimate-relatedopportunitydriverDevelopmentand/orexpansionoflowemissiongoodsandservicesTypeoffinancialimpactdriverIncreasedrevenuethroughdemandforloweremissionsproductsandservicesCompany-specificdescriptionCarbonregulationasanefficiencydriver:AnyregulationthatimposesapriceoncarbonorregulatescarbonemissionsmayincentivizecustomerstoswitchtheirtechnologyinfrastructuretoGSuiteenterprisesolutionsandtakeadvantage


ofGoogle’scloud,whichishighlyenergyefficientandiscarbonneutral.ThiscouldcreateadditionaldemandforGoogle’sexistingproductsand/orservices.TimehorizonShort-termLikelihoodAboutaslikelyasnotMagnitudeofimpactLowPotentialfinancialimpact111000000ExplanationoffinancialimpactIfnewcarbonregulationsareimplemented,Googleisinapositiontogrowitsproductsandservicesasitsdatacentersuse50%lessenergythanatypicaldatacenter.Forillustrativepurposes,ifanewenergyefficiencyregulationresultedinahypotheticalregulatoryadvantageforGoogleandyieldedanunpredictable0.1%increaseinrevenue,Google’sannualrevenuecouldincreasebyapproximately$111million(basedonFY2017revenueofapproximately$111billion).StrategytorealizeopportunityWe'veworkedhardtominimizetheenvironmentalimpactofourproductsandservicesandwecontinuetofindnewwaystoreduceourimpactsevenfurther.Ourdatacentersaresomeofthemostefficientintheworld—theyuse50%lessenergythantypicaldatacenters.ProvidinganactiveuseronemonthofGoogleservicescreatesaboutthesameamountofGHGemissionsasdrivingacaronemile.Additionally,we'rethefirstmajorInternetservicescompanytogainexternalcertificationofourhighenergymanagementstandardsinourdatacentersviaamulti-siteISO50001certificate.Currently,verylittleoftheworld’spowerisfromrenewableslikewindandsolar.We'reworkingonchangingthatbybuyingelectricitydirectlyfromwindfarmsnearourdatacenters.In2017,weenteredinto6morelong-termrenewableenergyagreementswhich,togetherwithourexistinglong-termcontracts,providenearly3GWofclean,renewableenergy.We'realsoworkingwithourutilitypartnerstofindsolutionsthatwillmakemorerenewableenergyavailableforusandforothers.Bymakingourproductsandservicesmoreefficientandmatchingourelectricityusewithrenewableenergy,Googleiscreatinganalternativesolutionforbusinessthatwillbebeneficialshouldregulationcomeforth,allowingourcustomerstohedgeagainstfutureenergycosts.Costtorealizeopportunity0CommentThemaincostsassociatedwithoursustainabilityeffortsaretheheadcountofengineers,programmanagers,andpartnermanagersworkingontheseinitiatives,aswellassoftwaredevelopmentcosts.


IdentifierOpp2Whereinthevaluechaindoestheopportunityoccur?CustomerOpportunitytypeEnergysourcePrimaryclimate-relatedopportunitydriverUseoflower-emissionsourcesofenergyTypeoffinancialimpactdriverReturnsoninvestmentinlow-emissiontechnologyCompany-specificdescriptionCarbonregulationasarenewableenergydriver:Futureregulatorysystemsthatputapriceoncarboncouldincreasetheamountofrenewablepowerthatstatesareincentivizedorrequiredtoprocure.Bothofthesearelikelytoprovidegreateconomicopportunityforeffortstodevelopandinvestinrenewablepower,aswellastodrawmoreattentiontothisimportantissue.Since2010,Googlehasmadecommitmentstoinvestnearly$2.5billionininnovative,large-scalerenewableenergyprojectswithatotalcombinedcapacityof3.7GW(separatefromthePPAsweusetopurchaserenewableenergyforourownoperations).Weviewthisasanopportunitytohelpdeployrenewableenergyatlargerscalewhileatthesametimemakinginvestmentsthathaveanattractiverisk-adjustedreturn.Wecontinuetolookforopportunitiesforfurtherinvestmentsaroundtheglobe.TimehorizonShort-termLikelihoodAboutaslikelyasnotMagnitudeofimpactMedium-highPotentialfinancialimpact0ExplanationoffinancialimpactTheInternationalEnergyAgency(IEA)estimatesthattheworldwillspend$26trillionoverthenexttwodecadestobuildtheenergyinfrastructurenecessarytomeetglobaldemand.BloombergNewEnergyFinance(BNEF)estimatesthat$7trillionwillbespentthrough2020forrenewableenergy.Thispresentsatremendousbusinessopportunityfortheprivatesectortohelppavethepathtowardsacleanenergyfuturewhilemakingattractiveriskadjustedreturns.In


pursuingthisopportunity,Googlehasalreadycommittednearly$2.5billionofinvestmentsinlargescalerenewableenergyprojectsandresidentialsolarrooftopfundswithatotalcapacityof3.7GW.In2015alone,Googlemadecommitmentstoinvestover$700mintorenewableenergyprojectsinboththeUSandoverseas.StrategytorealizeopportunityGoogleemploysrenewableenergyinvestmentprofessionalstosource,review,andexecuteinvestmentsinutility-scalerenewableenergyprojects.Wealsoengageexternalconsultantsforfinancialandtechnicaldiligence.Foreachinvestment,weobtainapprovalfromaninternalinvestmentcommitteeaswellasfromseniorexecutives.Wealsohaveanassetmanagementteamforongoingmanagementoftheseinvestments.Costtorealizeopportunity0CommentAsoftheendof2017,Googlehadcommittednearly$2.5billiontoinvestmentsinrenewableenergyprojectsaroundtheworld.Othercostsincludethestafftimetosource,analyze,andexecutethedeals.Wealsohaveaninternalassetmanagementteamforongoingmanagementoftheseinvestments.

IdentifierOpp3Whereinthevaluechaindoestheopportunityoccur?CustomerOpportunitytypeProductsandservicesPrimaryclimate-relatedopportunitydriverDevelopmentofnewproductsorservicesthroughR&DandinnovationTypeoffinancialimpactdriverIncreasedrevenuethroughdemandforloweremissionsproductsandservicesCompany-specificdescriptionOurproductshelpdrivecarbonmitigationeffortsandinformclimatescience.WeseeanopportunitytohelpraiseawarenessaboutthephysicalchangestotheEarth'snaturalresourcesandclimatethroughGoogleEarthandotherproducts,resultinginwidesocialbenefits.GooglehasdevelopedGoogleEarthEngine(earthengine.google.com),aplanetaryscaleplatformforgeospatialdataanalysisthatbringstogethertheworld'senvironmentalandEarthobservationsatelliteimagery,andmakesitavailableforanalysisonlineglobally.Also,GooglecreatedtheEarthOutreachprogram,whichgivesnonprofitsandorganizationstheknowledgeandresourcestheyneedtovisualizetheircausesandsharetheirstorywithhundredsofmillionsofusers.Asaglobalplatform,EarthEnginecanhelptoanalyzedataand


informationfromaroundtheworld.ThewidersocialbenefitscreatedbyGoogleEarthmayresultinincreasedbrandloyaltyforGoogle.TimehorizonShort-termLikelihoodVirtuallycertainMagnitudeofimpactMediumPotentialfinancialimpact142000000ExplanationoffinancialimpactTodate,GoogleEarthEnginehasprimarilybeenaphilanthropicprojectthathasnotmademoney,butthiscouldchangeastheproductevolves.IfcustomersvalueGoogleEarthEngineasatooltoexaminethephysicalchangestotheEarth'snaturalresourcesandclimate,thiscouldresultinincreasedcustomerloyaltyorbrandvalue.Thisopportunitydrivercouldhaveapositiveimpactonourbrands.Forexample,the2017BestGlobalBrandsreport,producedindependentlybyInterbrand,estimatesGoogle'sbrandvalueatapproximately$142billion.UsingInterbrand'sestimatedbrandvalue,ahypotheticalincreaseinbrandvalueof0.1%couldresultinagainoffuturebrandequityofapproximately$142millionviabrandloyaltycreatedbywidersocialbenefits.StrategytorealizeopportunityEarthEnginewasdevelopedtobringtogethertheworld'ssatelliteimagery—trillionsofscientificmeasuresdatingbackmorethan40years—andmakeitavailableonlinewithtoolsforscientists,independentresearchers,andnationstominethismassivewarehouseofdataaboutEarth'snaturalresourcestodetectchanges,maptrendsandquantifydifferencesontheearth'ssurface.Usingthisnewtechnologyplatform,we'vealreadybegunhelpingscientistsdevelopapplicationsfordetectingdeforestation—thedestructionofoneoftheEarth'simportantnaturalresources—andmappinglandusetrends,andhavestartedworkingwithindividualcountriestodeveloptheirownapplications.Forexample,GlobalForestWatch—anonlineforestmonitoringsystemcreatedbytheWorldResourcesInstitute(WRI)—waslaunchedin2014withGoogleandagroupofmorethan40partners.GlobalForestWatchusestechnologiesincludingGoogleEarthEnginetomaptheworld’sforestswithsatelliteimagery,detectchangesinforestcoverinnear-real-time,andmakethisinformationfreelyavailabletoanyonewithInternetaccess.Byaccessingthemostcurrentandreliableinformation,everyonecanlearnwhat’shappeninginforestsaroundtheworld(see:https://ai.googleblog.com/2014/02/monitoring-world-forests-with-global.html).Formoreinformationonothersimilarengagements,seeourresponsetoquestion12.3e.Costtorealizeopportunity


0CommentThemaincostsassociatedwithourEarthEngineeffortsareheadcount,softwaredevelopment,petabytesofdatastorageandtheprocessingofthisdata(i.e.runningscientificalgorithms)inourdatacenters.

IdentifierOpp4Whereinthevaluechaindoestheopportunityoccur?CustomerOpportunitytypeProductsandservicesPrimaryclimate-relatedopportunitydriverDevelopmentand/orexpansionoflowemissiongoodsandservicesTypeoffinancialimpactdriverIncreasedrevenuethroughdemandforloweremissionsproductsandservicesCompany-specificdescriptionReputation:DisclosingandproperlyaddressingclimatechangerisksandimpactsassociatedwiththeITindustryandproliferationofthecloudisbecomingmoreandmoreimportant.Notonlydoesacompanyneedtospeaktotheeffortsthey'remaking,theyalsoneedtoshowthroughtheiractionsthattheyaremakingimprovementsortakingmitigationmeasures.Google’scoreproductssuchasSearch,Android,Maps,Chrome,YouTube,GooglePlay,andGmaileachhaveover1billionmonthlyactiveusers.Addressingclimatechangeopportunitiesheadoncouldresultinanincreaseddemandforourgoodsandservicesbypositivelyimpactingourreputation.Weownandleaseadditionalofficeandbuildingspace,researchanddevelopmentlabs,andsalesandsupportofficesacrossmorethan160citiesprimarilyinNorthAmerica,Europe,SouthAmerica,andAsia,andweownandoperate14datacentersacrossfourcontinents.Wematched100%ofthe2017electricityconsumptionofourglobaloperationswithrenewableenergypurchases,whichcouldpositivelyimpactourreputationinregionswhereweoperate.TimehorizonMedium-termLikelihoodAboutaslikelyasnotMagnitudeofimpactMediumPotentialfinancialimpact


142000000ExplanationoffinancialimpactThisopportunitydrivercouldhaveapositiveimpactonourbrands.Forexample,the2017BestGlobalBrandsreport,producedindependentlybyInterbrand,estimatesGoogle'sbrandvalueatapproximately$142billion.UsingInterbrand'sestimatedbrandvalue,ahypotheticalincreaseinbrandvalueof0.1%couldresultinagainoffuturebrandequityofapproximately$142million.Itisverydifficulttopredictthemagnitudeorpotentialoccurrenceofthisopportunity,giventheindirectnatureoftherelationshipbetweenclimatechangeandonlineconsumereconomicactivity.StrategytorealizeopportunityWecontinuallystrivetomakeourprocessesmoreefficientandreduceourimpactontheenvironment,therebyhelpingourcustomersreducetheirfootprintaswellbychoosingourproductsandservices.Forexample,everyday,peoplearesavingtimeandmoneywithGoogleMaps-andgettingwheretheyneedtobe-allwhileminimizingtheirimpactontheenvironment.GoogleMapshastransitinformationfornearly7,000agencies,morethan3.8milliontransitstations,and20,000towns/citiesin78countries.Itprovidesover1billionkmworthoftransitresultseveryday.Googlealsoworkstoacceleratethedevelopmentofrenewableenergy,notonlybyprocuringrenewableenergyforouroperations,butalsothroughrenewableenergyinvestments.Forover10years,we'vebeenbuildingandrunningsomeofthemostefficientdatacentersintheworld.ThroughwhitepapersandpostsonourEnvironmentblogweworktoestablishtransparencytohelpothersdothesame.Forexample,in2014,wepublishedawhitepaperonmachinelearninganddatacenteroptimization(http://static.googleusercontent.com/media/www.google.com/en/us/about/datacenters/efficiency/internal/assets/machine-learning-applicationsfor-datacenter-optimization-finalv2.pdf).AlltheseeffortscanhavepositiveimpactsonourreputationandpotentiallyincreasedemandforGoogle'sproductsandservices.Costtorealizeopportunity0CommentThecostsassociatedwithproperlyaddressingclimatechangeopportunitiesandimpactsarethestafftimetocreateandmanagetheassociatedprojects.

IdentifierOpp5Whereinthevaluechaindoestheopportunityoccur?CustomerOpportunitytype


EnergysourcePrimaryclimate-relatedopportunitydriverShifttowarddecentralizedenergygenerationTypeoffinancialimpactdriverReturnsoninvestmentinlow-emissiontechnologyCompany-specificdescriptionGrowingdemandforenergy:Withtherisingneedforenergy,weexpectrenewableenergytoplayanintegralpartintheworld'senergyinfrastructure.Bybeinganearlyinvestoranddeployingsmartcapitaltofundutility-scaleprojects,webelievewecanacceleratethedeploymentofthelatestcleanenergytechnologieswhileprovidingattractivereturnstoGoogleaswellasmorecapitalfordeveloperstobuildadditionalprojects.Thisisaglobalopportunityastherearerenewableenergyopportunitiesworldwide,acrossdifferentgeographiesandtechnologytypes.We'venotonlyinvestedinlargescalerenewableenergyprojects,butalsoinfundsthathelptodeploysolarPVpanelsonresidentialhomes,wherethefallingcostsofsolarPVhavemadedistributedgenerationmuchmoreeconomicandinsomeregionsalreadycompetitivewithretailrates.Weseethisgrowthindistributedgeneration,acceleratedbythedropinPVprices,asanotheropportunitytoacceleratethedeploymentofcleanenergytechnologieswhileprovidingattractivereturnstoGoogle.In2014,wesignedanagreementtoinvest$84Minan80MWsolarpowerplantinRedHills,UT,whichatthetimewasthelargestsolarenergygenerationfacilityinthestate.TimehorizonShort-termLikelihoodVerylikelyMagnitudeofimpactMediumPotentialfinancialimpact0ExplanationoffinancialimpactIEAestimatesthattheworldwillspend$26trillionoverthenexttwodecadestobuildtheenergyinfrastructurenecessarytomeetglobaldemand.BNEFstatesthat2015wasthefirsttimethatrenewableenergy(excludinglargehydro)madeupoverhalfofalltheenergycapacityadditionsworldwideandestimatesthat$7trillionwillbespentthrough2020forrenewableenergy.Thispresentsatremendousbusinessopportunityfortheprivatesectortohelpbuildacleanenergyfuturewhilemakingattractiveriskadjustedreturns.Inpursuingthisopportunity,Googlehasmadecommitmentstoinvestnearly$2.5billionofinvestmentssince2010inlargescalerenewableenergyprojectsandresidentialsolarrooftopfundswithatotalcapacityof3.7GW.In2015alone,Googlemadecommitmentstoinvestover


$700millionintorenewableenergyprojectsinboththeUSandoverseas.Wewillcontinuetomanageourexistinginvestments.StrategytorealizeopportunityGoogleemploysrenewableenergyinvestmentprofessionalstosource,review,andexecuteinvestmentsinutility-scalerenewableenergyprojects.Wealsoengageexternalconsultantsforfinancialandtechnicaldiligence.Foreachinvestment,weobtainapprovalfromaninternalinvestmentcommitteeaswellasfromseniorexecutives.Wealsohaveanassetmanagementteamforongoingmanagementoftheseinvestments.In2015,Googlemadea$300millioninvestmentcommitmenttoafundwithSolarCity.Byparticipatinginthisprogram,homeownershelptheenvironmentandbenefitfromacompellingvalueproposition,typicallyrecognizingsavingsofftheirpastelectricitybillsimmediatelyuponconnection.Costtorealizeopportunity0CommentAsoftheendof2017,Googlehadcommittednearly$2.5billiontoinvestmentsinrenewableenergyprojectsaroundtheworld.Othercostsincludethestafftimetosource,analyze,andexecutethedeals.

IdentifierOpp6Whereinthevaluechaindoestheopportunityoccur?CustomerOpportunitytypeProductsandservicesPrimaryclimate-relatedopportunitydriverDevelopmentand/orexpansionoflowemissiongoodsandservicesTypeoffinancialimpactdriverIncreasedrevenuethroughdemandforloweremissionsproductsandservicesCompany-specificdescriptionAsclimatechangeoccurs,weexpectthatenergypriceswillincreaseandhence,moreconsumerswillusepublicandalternativetransportationratherthanprivatevehicles.WethereforeseeanopportunityforincreaseduseofGoogleMapsTransit,whichprovidespublictransitdirectionsandwalkingandbikingroutesinGoogleMaps.Ascanbeseenatwww.google.com/transit,GoogleMapsTransitprovidesmaps&schedulesforpublictransitsystemsincitiesworldwide.Currently,GoogleMapsservesonebillionactivemonthlyuserswithmappingtools.GoogleMapshastransitinformationfornearly7,000agencies,morethan3.8milliontransitstations,and20,000towns/citiesin78countries.Itprovides


over1billionkmworthoftransitresultseveryday.FormoreinformationabouthowGoogleMapshelpsusersminimizetheirimpactontheenvironment,see:http://googleblog.blogspot.com/2014/05/hop-on-boardand-go-almost-anywherewith.html.TimehorizonShort-termLikelihoodVerylikelyMagnitudeofimpactMedium-lowPotentialfinancialimpact0ExplanationoffinancialimpactGoogleTransitandbiking/walkingroutesareafeatureofGoogleMaps,afreeonlinetoolpotentiallymonetizablethroughadvertising.Weexpectthatincreaseddemandfortransitdirections/scheduleswouldmeanmoreusersofGoogleMaps,whichcouldpotentiallytranslateintogreaterpotentialadvertisingrevenue.Wegenerated87%($95,375,000,000)oftotalGooglesegmentrevenuesfromadvertisingin2017.If,forexample,duetoclimatechange,transituseincreased10%amongGoogleMapsusers,wewouldexpectacommensurate(thoughnotnecessarilyproportional)increaseinpotentialadvertisingrevenue.StrategytorealizeopportunityTransitonGoogleMapsisapublictransportationplanningtoolthatcombinesthelatestagencydatawiththepowerofGoogleMaps,andwearecontinuallyimprovingthistool,withmanynewfeaturesandcitiesaddedin2017.Foragenciesaroundtheworld,GoogleMapsisacost-effectivesolutiontargetedattransitnovicesandseasonedtravelersalike.WemakeGoogleMapsavailablein69differentlanguagesanditiscompatiblewithscreenreadersforthevisuallyimpaired.WehavemadetheTransitandBikingDirectionsonGoogleMapsfeatureavailableonselectedmobiledevicesthroughGoogleMapsformobile,andwehavealsoincludedpublictransportationinformationinGoogleEarth.GooglehasateamofemployeesthatmanageGoogleMapsandGoogleTransit.Costtorealizeopportunity0CommentThemaincostsassociatedwithourGoogleTransiteffortsandGoogleMapsfeaturesaretheteam'sheadcountofengineers,productmanagers,andpartnermanagers,aswellassoftwaredevelopmentcosts.

C2.5


(C2.5)Describewhereandhowtheidentifiedrisksandopportunitieshaveimpactedyourbusiness. Impact Description

Productsandservices

Notyetimpacted

AnyregulationthatimposesapriceoncarbonorregulatescarbonemissionsmayincentivizecustomerstoswitchtheirtechnologyinfrastructuretoGSuiteenterprisesolutionsandtakeadvantageofGoogle’scloud,whichishighlyenergyefficientandiscarbonneutral.ThiscouldcreateadditionaldemandforGoogle’sexistingproductsand/orservices.Ifnewcarbonregulationsareimplemented,Googleisinapositiontogrowitsproductsandservicesasitsdatacentersuse50%lessenergythanatypicaldatacenter.Thepotentialtimehorizonforthisimpactispredictedtobeshort-term.

Supplychainand/orvaluechain

Notyetimpacted

Wehaveveryfewdirectemissionsofgreenhousegases,thereforewedonotexpectouroperationstobedirectlyimpactedbyclimatepolicyintheUS,nordoweexpecttoparticipateinanycurrentorfuturecompliancemarketsforcarbontradingintheUS.Googledoes,however,facetheriskofincreasedcostsofenergyifapriceoncarbonisappliedthroughlegislationsuchascapandtrade(orothermechanismssuchastaxation).Totheextentthatthispriceispassedontousfromaregulatedentity,thecostofrunningouroperationswillincrease.However,wealreadyoperatesomeofthemostefficientdatacentersintheworld,procurerenewablepowerforourdatacenters,andgenerateonsiterenewableenergyatseveralofouroffices,allofwhichreduceourexposuretothisrisk.Forexample,in2017,theaverageannualPowerUsageEffectiveness(PUE)forourglobalfleetofdatacenterswas1.11,comparedwiththeindustryaverageof1.58.Googleisalsotheworld’slargestcorporatepurchaserofrenewableenergy;since2010,we’vesigned26agreementstotalingnearly3.0gigawattsofrenewableenergy.Inaddition,wealreadyincludeashadowpriceforcarboninourdatacentersitinganalysissowetakethisriskintoaccountevenbeforewebuildadatacenter.Finally,wearecarbon-neutralthroughthepurchaseofhigh-qualitycarbonoffsets,soineffect,wealreadyincludeacarbonpriceinouroperations.Thepotentialtimehorizonforthisimpactispredictedtobeshort-term.

Adaptationandmitigationactivities

Notyetimpacted

BasedonRCP4.5and8.5,theSanFranciscoBayAreaisprojectedtoexperiencesealevelrisebetween18.5-26.0inchesbytheendofthecentury.ThelocationofourbuildingsinMountainView,Sunnyvale,andPaloAltoandtheimportanceofthesesitesasGoogle’sglobalheadquartersplacesthosefacilitiesataparticularlyhighriskwhenmappedagainstanticipatedsealevelrise.ManyofGoogle’sbuildingsintheselocationsarelocatedinthecurrent100-yearfloodplainand,therefore,areatrisktoimpactsfromcoastalfloodinginthepresentday.Thoseriskswillonlybefurtherexacerbatedbysealevelrisethroughoutthecentury.CoastalfloodingcausedbyrisingsealevelscouldhavethefollowingimpactsonGoogle'sfacilitiesandoperations:1)FloodimpactstoGoogle’sbuildingscouldresultindamagetothestructure,buildingequipment,andcontents,aswellaspotentialriskstoemployeesafety.2)Floodimpactstomajorroadwaysandothertransportationroutesmayimpacttheabilityofemployeestogettowork.3)Onamoreglobalscale,sealevelriseandcoastalfloodingcouldimpactGoogle’sglobalsupplychainsandbusinessoperations.Thepotentialtimehorizonforthisimpactispredictedtobelong-term.

InvestmentinR&D

Notyetimpacted

Ourproductshelpdrivecarbonmitigationeffortsandinformclimatescience.WeseeanopportunitytohelpraiseawarenessaboutthephysicalchangestotheEarth'snaturalresourcesandclimatethroughGoogleEarthandotherproducts.GooglehasdevelopedGoogleEarthEngine(EarthEngine.Google.com),aplanetaryscaleplatformforenvironmentaldata&analysisthatbringstogethertheworld'ssatelliteimageryandmakesitavailableonline.Also,GooglecreatedtheEarthOutreachprogram,whichgivesnonprofitsandorganizationstheknowledgeandresourcestheyneedtovisualizetheircausesandsharetheirstorywithhundredsofmillionsofusers.Asaglobalplatform,EarthEnginecanhelptoanalyzedataandinformationfromaroundtheworld.ThewidersocialbenefitscreatedbyGoogleEarthmayresultinincreasedbrandloyaltyforGoogle,andthus,increasedbrandvalue.Thepotentialtimehorizonforthisimpactispredictedtobeshort-term.


Impact Description

OperationsNotyetimpacted

Wemustcoolourdatacenterstokeeptheminoperation,andtheamountofenergyneededtocoolthemisrelatedtotheoutsideairtemperature.Ifglobaltemperaturesincrease,thiswillincreasetheamountofenergyrequiredtocoolourdatacentersandincreasethecostofrunningouroperations.Giventhatclimatechangeisexpectedtoincreaseaveragetemperaturesgloballyandwehavefacilitiesandoperationsaroundtheworld,thisisariskwefaceatallofourfacilitiesglobally.Inparticular,thismayimpactourdatacenterslocatedinwarmclimates,suchasourdatacenterinSingapore.Ingeneral,weexpectthatourcoolingcostswillgoupproportionatelytotheincreaseincooling-degree-daysduetoincreasingaveragetemperatures.Wearenotabletopredicttheexacttemperatureincrease,butif,forexample,thenumberofcooling-degree-daysincreasedby10%,wewouldexpecta10%riseinourcoolingcosts,assumingwewerenotfurtherabletoimproveourenergyefficiency.Thiswouldhavealow-mediumnegativefinancialimpact.Thepotentialtimehorizonforthisimpactispredictedtobemedium-term.

Other,pleasespecify

Pleaseselect

C2.6

(C2.6)Describewhereandhowtheidentifiedrisksandopportunitieshavefactoredintoyourfinancialplanningprocess. Relevance Description

RevenuesNotyetimpacted

AnyregulationthatimposesapriceoncarbonorregulatescarbonemissionsmayincentivizecustomerstoswitchtheirtechnologyinfrastructuretoGSuiteenterprisesolutionsandtakeadvantageofGoogleCloud,whichishighlyenergyefficientandiscarbonneutral.ThiscouldcreateadditionaldemandforGoogle’sexistingproductsand/orservices,andthereforeincreaserevenues.Ifnewcarbonregulationsareimplemented,Googleisinapositiontogrowitsproductsandservices,andthereforeitsrevenues,asitsdatacentersuse50%lessenergythanatypicaldatacenter.Thepotentialtimehorizonforthisimpactispredictedtobeshort-term.

OperatingcostsNotyetimpacted

Runningourbusinessrequiresustousealotofelectricitytopowerourdatacenters,offices,andotherinfrastructure.Googleownsandoperates14datacenters.In2017,ourtotalenergyconsumptionwas8,029,409MWh.Wemustcoolourdatacenterstokeeptheminoperation,andtheamountofenergyneededtocoolthemisrelatedtotheoutsideairtemperature.Ifglobaltemperaturesincrease,thiswillincreasetheamountofenergyrequiredtocoolourdatacentersandincreasethecostofrunningouroperations.Giventhatclimatechangeisexpectedtoincreaseaveragetemperaturesgloballyandwehavefacilitiesandoperationsaroundtheworld,thisisariskwefaceatallofourfacilitiesglobally.Inparticular,thismayimpactourdatacenterslocatedinwarmclimates,suchasourdatacenterinSingapore.Ingeneral,weexpectthatourcoolingcostswillgoupproportionatelytotheincreaseincooling-degree-daysduetoincreasingaveragetemperatures.Wearenotabletopredicttheexacttemperatureincrease,butif,forexample,thenumberofcooling-degree-daysincreasedby10%,wewouldexpecta10%riseinourcoolingcosts,assumingwewerenotfurtherabletoimproveourenergyefficiency.Thiswouldhavealow-mediumnegativefinancialimpact.Thepotentialtimehorizonforthisimpactispredictedtobemedium-term.


Relevance Description

Capitalexpenditures/capitalallocation

Notyetimpacted

Googleownsandoperates14datacenters.AsGooglerequiresalotofenergytorunouroperations,wefacetheriskofincreasedcostsofenergyifapriceoncarbonisappliedthroughlegislationsuchascapandtrade(orothermechanismssuchastaxation).Weareassessingthepotentialimpactsofcarbontaxesandlegislation.Forexample,wearecloselymonitoringanExecutiveOrderthatdirectedtheEPAtoreviewtheCleanPowerPlan(CPP).Wealreadyincludeashadowpriceforcarboninourdatacentersitinganalysissowetakethisriskintoaccountevenbeforewebuildadatacenter.Wearealsocarbon-neutralthroughthepurchaseofhigh-qualitycarbonoffsets,soineffect,wealreadyincludeacarbonpriceinouroperations.Thepotentialtimehorizonforthisimpactispredictedtobeshort-term.

Acquisitionsanddivestments

Notyetimpacted

Acquisitions,jointventures,investmentsanddivestituresareimportantelementsofouroverallcorporatestrategyanduseofcapital.DuringtheyearendedDecember31,2017,wecompletedvariousacquisitionsandpurchasesofintangibleassetsfortotalconsiderationofapproximately$322million.Anyregulationthatimposesapriceoncarbonorregulatescarbonemissionsmayimpactthetypesofcompaniesweconsideracquiringorthesegmentsofthebusinessweconsiderdivesting,dependingonhowcarbonintensivetheyare,asitmayimpacttheirvaluation.Thepotentialtimehorizonforthisimpactispredictedtobeshort-term.

AccesstocapitalNotimpacted

Asatechnologycompanyandduetothenatureofourbusiness,wedonotbelieveclimatechangewillimpactouraccesstocapital.

AssetsNotyetimpacted

Since2010,we’vecommittedtoinvestnearly$2.5billioninlarge-scalerenewableenergyprojectsandresidentialsolarrooftopfundswithacombinedcapacityof3.7GW.Thesetargetedinvestmentsgobeyondourownoperationalfootprint,enablingrenewableenergydeploymentatalargerscalewhilegeneratingattractiverisk-adjustedreturns.Certainrenewableenergyinvestmentsincludedinournon-marketableequityinvestmentsaccountedforundertheequitymethodareVIEs.Theseentities'activitiesinvolvepowergenerationusingrenewablesources.Wehavedeterminedthatthegovernancestructuresoftheseentitiesdonotallowustodirecttheactivitiesthatwouldsignificantlyimpacttheireconomicperformancesuchassettingoperatingbudgets.Thepotentialtimehorizonforthisimpactispredictedtobemedium-term.

LiabilitiesNotyetimpacted

Theavailabilityofourproductsandservicesdependsonthecontinuingoperationofourinformationtechnologyandcommunicationssystems.Oursystemsarevulnerabletodamageorinterruptionfromtheeffectsofclimatechange(suchassealevelrise,drought,flooding,wildfires,andincreasedstormseverity).OurheadquartersarelocatedinMountainView,California.Wealsoownandleaseofficeandbuildingspaceinthesurroundingareasnearourheadquarters,whichintheaggregate(includingourheadquarters)representapproximately11.1millionsquarefeetofoffice/buildingspaceandapproximatelyforty-fiveacresofdevelopablelandtoaccommodateanticipatedfuturegrowth.WeconductedanassessmentofGoogle'sexposuretoclimateriskinthenear-term(2020-2025),mid-term(2050),andlong-term(2100).Thisincludedaglobalassessmentoftheimpactoffloodingonourrealestateoperations.BasedonRCP4.5and8.5,theSanFranciscoBayAreaisprojectedtoexperiencesealevelrisebetween18.5-26.0inchesbytheendofthecentury.EventhoughthelocationofGoogle’sBayAreaheadquartersisnotprojectedtoexperiencethehighestlevelofsealevelrisewhencomparedtotheotherGooglesitesassessedaspartofthisstudy,thelocationofthebuildingsinMountainView,Sunnyvale,andPaloAltoandtheimportanceofthesesitesasGoogle’sglobalheadquartersplacesthosefacilitiesataparticularlyhighriskwhenmappedagainstanticipatedsealevelrise.ManyofGoogle’sbuildingsintheselocationsarelocatedinthecurrent100-yearfloodplainand,therefore,areatrisktoimpactsfromcoastalfloodinginthepresentday.Thoseriskswillonlybefurtherexacerbatedbysealevelrisethroughoutthecentury.Thepotentialtimehorizonforthisimpactispredictedtobemedium-term.


Relevance Description

Other Pleaseselect

C3.BusinessStrategy

C3.1

(C3.1)Areclimate-relatedissuesintegratedintoyourbusinessstrategy?YesC3.1a

(C3.1a)Doesyourorganizationuseclimate-relatedscenarioanalysistoinformyourbusinessstrategy?Yes,qualitativeandquantitativeC3.1c

(C3.1c)Explainhowclimate-relatedissuesareintegratedintoyourbusinessobjectivesandstrategy.Sinceourfounding,we’vefocusedonprovidingthebestuserexperiencepossibleandwetakegreatcaretoensuretheproductsandservicesweprovideserveourcustomers.Wevalueefficiencyineverythingwedo,fromcreatinggreatproductsandbuildingdatacenterstomanagingoursupplychainandofficespace.Wecontinuallystrivetomakeourprocessesmoreefficientandtoreduceourimpactontheenvironment,therebyhelpingourcustomersreducetheirfootprint,too,bychoosingourproductsandservices—GoogleCloudPlatformandGSuiteproductsenablemillionsofbusinessestoshifttoourhighlyefficient,renewableenergy–basedcomputinginfrastructure.i.Becausewebelieveclimatechangeandenvironmentalregulationmayresultinhigherenergyprices,ourstrategyhasbeeninfluencedintwoways:(1)wepurchaserenewableelectricityforouroperations,and(2)wepursueenergyefficiencyprojectsanddesignforthehighestenergyefficiencypossible.Specifically,tomitigatefuturepricerisesinelectricitycosts(includingthoseduetoenvironmentalregulation),weseeklong-termcontractsforrenewableelectricityandworktoimproveenergyefficiencyinallourfacilities,includingdatacentersandofficespaces.


Ourinternalreportingprocessenablesustotrackprogresstowardourgoalsandinfluencefuturestrategies.BoththeTechnicalInfrastructureandRealEstateteamsdevelopstrategiestoreachourgoals.ThesearethentranslatedintoprogramsandprojectswhoseresultsarereportedtotheSVPofTechnicalInfrastructureandtheVPofRealEstatequarterly.Thisprocessisembeddedacrossthecompanyandthefeedbackmechanismofquarterlyreportinghelpstofurtherinfluencefuturestrategies.Forexample,ourRealEstateteamrunsaninternalSustainableOperationsProgram,whichrequireseachparticipatingofficetocomplywithasetofannualandongoingsustainabilitybestpractices,inadditiontocompletingatleastonedatadrivenprojecteachyeartoreducetheirlocalimpactontheenvironment.Aswebecomemoreefficient,customersusingourproductsandservicesinevitablydotoo,whichalsodecreasestheircarbonfootprint.Forexample,bymovingits17,000employeestoGoogleAppsandGmail,theUSGeneralServicesAdministrationreducedserverenergyconsumptionbynearly90%.ii.Physicalandregulatoryriskshaveinfluencedourstrategy.Specifically,thepotentialincreaseinelectricitypricesduetothephysicalimpactsofclimatechangeandanyresultingregulationshaveincreasedourpushtosourcelong-termcontractsforrenewableelectricitytoavoidexposuretoelectricitypricevolatilityand/orincreases.Additionally,regulatoryopportunityalsoinfluencedthisstrategy;byadoptinglong-termcontractsforrenewableelectricitynow,westayaheadofpotentialfutureregulations.Aswe’venoticednewopportunitiesresultingfromclimatechange,wealsohaveadoptedseveralnewproductlines.Forexample,in2015welaunchedProjectSunroof,anewonlinetoolthathelpsusersestimatepotentialsolarenergyproductionandcostsavingsiftheyweretoinstallarooftopsolarsystem.In2017,thistoolexpandedcoveragebeyondtheUnitedStatesintoGermany,mapping67millionrooftopsacross8,900cities,whichenabledover2millionuserstomakeinformeddecisionsaboutsolarpanelinstallation.iii.Energyriskmanagementremainsthemostimportantcomponentofourshort-termstrategythathasbeeninfluencedbyclimatechange.ThisincludesourdesiretomaximizeenergyefficiencyinordertoincreasetheutilizationofeachkWhwepurchase.Forexample,comparedwithfiveyearsago,ourdatacentersnowdeliveraroundseventimesasmuchcomputingpowerwiththesameamountofelectricalpower.Wefocusonreducingtheenergyweusebydesigningandbuildingenergy-andresource-efficientdatacentersandofficebuildings,aswellassupportingenergyefficientoperations.iv.In2007,weannouncedourgoaltobecomecarbonneutralwithintheyear,whichweachieved,andwehavemaintainedcarbonneutralityforthelasttenconsecutiveyears.In2012,wesetalong-termgoaltopurchaseenoughrenewableenergytomatchalltheelectricity


weconsumegloballyonanannualbasis.In2017,weachievedit:Google’stotalpurchaseofenergyfromsourceslikewindandsolarexceededtheamountofelectricityusedbyouroperationsaroundtheworld,includingofficesanddatacenters.Ourlong-termgoalstobuildacleanerenergyfuturewillresultinourproductsandservices,andthereforeultimatelyourusers,havingasmallerenvironmentalfootprint.Themostimportantcomponentofthislong-termstrategyisourcommitmenttoseekoutlong-termcontractsforthepurchaseofrenewableelectricity.Tomeetthatgoal,wecontinuetopursuesuchcontracts,which,overthelongterm,willreduceourcarbonfootprintandhelpprotectusfromtherisksmentionedabove.Anotherpartofourlong-termstrategyistoencouragethedevelopmentanddeploymentofmorerenewableenergythroughpolicyadvocacy.v.Googledatacentersuse50%lessenergythanatypicaldatacenterandwearethelargestcorporatepurchaserofrenewableenergyintheworld.Webelievethishelpsusachievestrategicadvantageoverourcompetitorsbyensuringstableelectricitypricesoverthelongterm,loweringouroperationalcosts,andhelpingprotectusfromthesourcingandpotentialregulatoryrisksmentionedabove.Companiesandusersthatchooseourproductsandservicescanbeconfidentthatwearehelpingthemminimizetheirenvironmentalimpact—evenastheirneedsandservicesscale.vi.In2017,themostsubstantialbusinessdecisionswemadethatwereinfluencedbyclimatechangeincludesigningnewrenewableenergycontracts,regulatorywork,andongoingefficiencyeffortsinourdatacenters,asfollows:-Weenteredinto6morelong-termrenewableenergyagreementswhich,togetherwithourexistinglong-termcontracts,providenearly3GWofclean,renewableenergy.Forexample,onNovember30,2017,weannouncedthatwehadsignedcontractstopurchasetheoutputof396MWofwindenergyfromthreeseparatewindfarmsinIowaandSouthDakota.-Weengageddirectlywithpolicymakerstocallforpoliciesthatpromoterenewableenergyand/orreducecarbonemissions.Forexample,in2017,inresponsetoExecutiveOrder13783onMarch28,2017directingtheEPAtorepealtheCleanPowerPlan(CPP),weissuedajointstatementopposingtheorderandreiteratingourbeliefthatcleanenergypoliciesliketheCPParegoodforourbusinesses.-Wemaintainedacomprehensiveenergymanagementsystem(EnMS)forourdatacentersandacorporate,multi-siteISO50001certificationviaanexternalauditTheaspectofclimatechangethatinfluencedthesebusinessdecisionsisthepotentialphysicalandregulatoryimpactsofclimatechange,asexplainedin(i)


C3.1d

(C3.1d)Providedetailsofyourorganization’suseofclimate-relatedscenarioanalysis.Climate-relatedscenarios Details

Other,pleasespecify(RCP4.5andRCP8.5)

Google'sclimatebaselinewasestablishedbyassessingfuturechangestothefollowingclimatefactorsasaresultofclimatechange:sealevelrise,precipitation,temperature,andwaterstress.WeusedWRI’sdefinitionsofwaterstressandwhatclassifieshigh-stressandextremelyhigh-stressareas.Eachoftheseclimatefactorswereassessedagainsttwoemissionspathwaysandacrossthreetimehorizons.Asameanstocaptureashort-term,mid-term,andlong-termunderstandingofGoogle’sfutureclimateexposure,threetimehorizonswereidentifiedandconsidered:2020/2025,2050,and2100.ThesetimehorizonswerechosenbecausetheycorrelatewithGoogle’sintentionstoplanfortheresilienceofitsdatacentersandofficebuildings,whilealsoprovidinginformationabouttheneedtotakeanyimmediateactionstoimprovetheresilienceofitsbusinessoperations.Foreachofthesetimehorizons,weconductedananalysisofthePariscompliantscenarioandthebusinessasusualscenarioinordertounderstandtherangeofpossiblefutureclimateimpacts.Theemissionsscenarioswerebasedontherepresentativeconcentrationpathways(RCPs)developedbytheIntergovernmentalPanelonClimateChange(IPCC)aspartofitsFifthAssessmentReport.TheRCPsdescribefourpossibleclimatefutures,basedonawiderangeofpossiblechangestogreenhousegas(GHG)emissions,asaresultofhumanactivity.RCP8.5,thehigh-emissionspathway,approximatesa“businessasusual”scenarioifthereisnosignificantglobalactiontowardGHGemissionsreductionandmitigation.Thelow-emissionsscenario,RCP4.5,waschosenbecauseittakesintoaccountsignificantmitigationeffortsandalignswiththeParisclimateaccordthatwentintoeffectinNovember2016.Basedonthisclimatebaselinedata,theresearchteamidentifiedtheclimateexposureforeachoftheGooglesitesincludedinthisassessmentanddevelopedhigh-levelrecommendationsandprioritiestohelpshapeGoogle’snextstepstowarddevelopingaclimateresiliencestrategy.Incollaborationwithexternalconsultantsandotherkeystakeholders,Google’sSustainabilityOfficerleddevelopmentofaclimateresiliencestrategyforGoogle,includingaglobalassessmentoftheimpactsofsealevelrise,precipitation,temperature,andwaterstressonourmajorrealestateoperations(definedasourtop23sitesbyheadcount)and15datacentersites.Thetwokeyresultsofthescenarioanalysiscanbesummarizedasfollows:exposuretoincreasedtemperaturesislikelytoimpactmanyofourglobalsitesby2050.Asearlyas2050,combinedeffectsofsealevelriseandfloodingcouldbesignificantinourSanFranciscoBayAreaheadquarters.TheresultsofthescenarioanalysishasprimarilyinformedourrealestatedevelopmentobjectivesandstrategyintheBayArea.Climateresiliencehasbecomeacentralthemethathasinfluencedourlarge-scaledistrictandmasterplanning.Intermsofbusinessobjectives,theresultsofthescenarioanalysisencouragedGoogletotakealongertermviewonhowriskswillimpactrealestatestrategybeyondthe2050timehorizon.Intermsofstrategy,Googleisexploringspecificwaystoinvestinmitigationmeasurestodaywhichwillreduceriskinthefuture,suchasexpandingcreekchannelsandraisingfinishedfloorelevationofnewbuildings.Forexample,Googleisengagedinalarge-scalemasterplaneffortforourMountainViewandSunnyvalelocations,whicharebothinCalifornia.Sealevelriseandfloodinghaveemergedascriticalclimaterisksthatcanhaveamaterialimpactonphysicalassets,andhavebeenconsideredaspartoftheoveralldevelopmentstrategyforGoogle’sexpandingfootprintinthearea.Todeterminetherelativesignificanceofclimate-relatedrisksinrelationtootherrisks,wehaveevaluatedriskfromatriplebottomlineperspective,includingenvironment,financialandsocialimpacts.

C4.Targetsandperformance

C4.1


(C4.1)Didyouhaveanemissionstargetthatwasactiveinthereportingyear?BothabsoluteandintensitytargetsC4.1a

(C4.1a)Providedetailsofyourabsoluteemissionstarget(s)andprogressmadeagainstthosetargets.TargetreferencenumberAbs1ScopeScope1+2(market-based)+3(upstream)%emissionsinScope100%reductionfrombaseyear100Baseyear2017Startyear2017Baseyearemissionscoveredbytarget(metrictonsCO2e)931942Targetyear2017Isthisascience-basedtarget?No,andwedonotanticipatesettingoneinthenext2years%achieved(emissions)100TargetstatusExpiredPleaseexplainEveryyear,wehaveagoalofbeingcarbonneutral.AsofDecember31,2017,wereachedcarbonneutralityfor100%ofourFY2017operationalemissions,whichrepresentScope1+Scope2(market-based)+Scope3(Businesstravelandemployeecommuting).Abs1coversScope1+Scope2(market-based)+Scope3(Businesstravelandemployeecommuting).Wecommittedtobeingcarbonneutralin2007andwehaveachievedthisgoaleachyearsincethen.We


maintainourcommitmenttocarbonneutralityofouroperationalfootprintfirstthroughenergyefficiency,second,bysigninglong-termcontractsforrenewableenergydirectlyfromourutilityprovidersandfromgreenenergyfacilitiesinthesamegridregionsasourdatacenters,andlastly,byinvestinginhigh-qualitycarbonoffsetprojects.WeunderstandthatCDPdoesnotacknowledgecarbonoffsetsasawaytoreduceemissions,however,wedorecognizeoffsetsasaviableandimportantapproachformitigatingourcarbonemissionsimpact,aswellasacriticalcomponentofourthree-tieredcarbonneutralitystrategy.

TargetreferencenumberAbs2ScopeScope1+2(market-based)%emissionsinScope100%reductionfrombaseyear100Baseyear2015Startyear2015Baseyearemissionscoveredbytarget(metrictonsCO2e)1451418Targetyear2025Isthisascience-basedtarget?No,andwedonotanticipatesettingoneinthenext2years%achieved(emissions)83TargetstatusUnderwayPleaseexplainAbs2includesRE2,aswellasScope1emissions,andisourinterimtargetforAbs3.OnJuly27,2015,Googlecommittedtotriplingourpurchasesofrenewables(then1.1GW)by2025(see:https://www.whitehouse.gov/the-press-office/2015/07/27/fact-sheet-white-house-launches-american-business-act-climate-pledge).Thisisexpectedtoresult


ininstalledproductioncapacityof3.4GWofrenewablepowerandanannualGHGemissionsreductionofapproximately2.7milliontCO2by2025,ofwhichanincreaseof1.8milliontCO2inourannualGHGemissionsreduction(from0.9milliontCO2/yearto2.7milliontCO2/year)willbeachievedby2025.AsofDecember31,2017,ourannualgreenhousegasemissionsreductionsfromourrenewableenergyprojectswere2.8millionmetrictonnes,whichputsus154%ofthewaytowardsthisgoalfromanemissionsreductionperspective,but83%ofthewaytowardsthisgoalfromanREperspectiveasattheendof2017wehadpurchasednearly3gigawattsofrenewableenergy(seeRE2).Ourcalculationsassumethatthegridemissionsfactorsinthetargetyearremainthesame.Ouroverallenergyusagefrombaseyeartotargetyearisexpectedtoincrease,sothistargetisexpectedtoresultinanequivalentannualreductionofemissionsfrombaseyeartotargetyearof124%by2025,thoughwehavewritten100%asthatisthemaximumvaluepossibleforthisfield.Our%reductionfrombaseyearrepresentsannualemissionsreductionsinourtargetyearduetoadditionalpurchasesofrenewables(1.8milliontCO2),ascomparedtoourannualbaseyearemissionscoveredbythistarget(1.5milliontCO2).[(1.8milliontCO2/1.5milliontCO2)*100=124%].Ourmarket-basedScope2emissionsrepresented88%ofourcombinedScope1andmarket-basedScope2emissionsin2017.

TargetreferencenumberAbs3ScopeScope1+2(market-based)%emissionsinScope100%reductionfrombaseyear100Baseyear2015Startyear2015Baseyearemissionscoveredbytarget(metrictonsCO2e)1451418Targetyear2040Isthisascience-basedtarget?No,andwedonotanticipatesettingoneinthenext2years%achieved(emissions)


100TargetstatusUnderwayPleaseexplainAbs3includesRE1,aswellasScope1emissions.In2012,wesetalongtermgoaltopurchaseenoughrenewableenergytomatchalltheelectricityweconsumegloballyonanannualbasis.In2017,weachievedit:Google’stotalpurchaseofenergyfromsourceslikewindandsolarexceededtheamountofelectricityusedbyouroperationsaroundtheworld,includingofficesanddatacenters.Whilewe’restilldrawingpowerfromthegrid,someofwhichisfromfossilfuelresources,we’repurchasingenoughwindandsolarenergytomatcheveryMWhofelectricityourdatacenterandofficeoperationsconsumeannually.In2017,ourannualGHGreductionsfromourrenewableenergyprojectswere2.8millionmetrictonnes.Thisputsus154%ofthewaytowardsthisgoalfromanemissionsreductionperspective.Googleisthelargestcumulativecorporatepurchaserofrenewableenergyintheworld.Since2010,we’vesigned26agreementstotalingnearly3.0gigawattsofrenewableenergy.Reachingour100%renewablepurchasinggoalmeansthatGooglebuysonanannualbasisthesameamountofmegawatt-hours(MWh)ofrenewableenergy—boththephysicalenergyanditscorrespondingrenewableenergycertificates(RECs)—astheamountofMWhofelectricitythatweconsumeforouroperationsaroundtheworld.Wherepossible,webuythisenergydirectlyfromourutilityprovidersandfromgreenenergyfacilitiesinthesamegridregionsasourdatacenters.Sincewe'reusingAbs2asourinterimtargetforAbs3anditwouldbedifficulttopredictouremissionsin2040,weusedmostofthesamedatahereforAbs3aswedidforAbs2.WeknowwewillincreaseourannualGHGemissionsreductionbyatleast1.8milliontCO2ofemissions(ourAbs2target)sometimebefore2040.TheactualreductionintCO2willlikelybegreateraswebelieveourScope2emissionswillgrowbetweenourbaseyearand2040.Matching100%renewableenergyisjustthebeginning.We’rebuildingnewdatacentersandoffices,andasdemandforGoogleproductsgrows,sodoesourelectricityload.Weneedtobeconstantlyaddingrenewablestoourportfoliotokeepup.Sowe’llkeepsigningcontractstobuymorerenewableenergy.Andinthoseregionswherewecan’tyetbuyrenewables,we’llkeepworkingonwaystohelpopenthemarket.Assuch,whileweachievedourtargetthisyear,oureffortsareongoing.

C4.1b

(C4.1b)Providedetailsofyouremissionsintensitytarget(s)andprogressmadeagainstthosetarget(s).TargetreferencenumberInt1ScopeScope1+2(market-based)


%emissionsinScope0.47%reductionfrombaselineyear50MetricMetrictonsCO2eperunitFTEemployeeBaseyear2011Startyear2011Normalizedbaselineyearemissionscoveredbytarget(metrictonsCO2e)0.14Targetyear2025Isthisascience-basedtarget?No,andwedonotanticipatesettingoneinthenext2years%achieved(emissions)96TargetstatusUnderwayPleaseexplainWehavemanyemissionreductionactivities,andthisisonewechosetohighlighthere.Google'sNYCofficehaschosentoparticipateintheNYCCarbonChallenge.Wehavevolunteeredtogobeyondthe30%greenhousegasreductionperFTEemployeeby2030andinsteadworktoa50%reductioninmetrictonnesCO2eperFTEemployeeby2025from2011baselinesforScope1and2emissions.GoogleiscommittedtoreducingourScope1and2emissionsperFTE(full-timeemployee)by50%inourNewYorkCityofficeby2025.AsofDec.31,2017,wehaveachieveda48%reductionofScope1and2emissionsperFTEthroughvariousenergyefficiencyandemissionsreductionsprojects,puttingus96%ofthewaytowardsthisgoal.ThistargetisrelatedtoScope1and2emissions,therefore,wedon'texpectanychangeinScope3emissionsfromthistargetspecifically.%changeanticipatedinabsoluteScope1+2emissions0.48%changeanticipatedinabsoluteScope3emissions0


C4.2

(C4.2)Providedetailsofotherkeyclimate-relatedtargetsnotalreadyreportedinquestionC4.1/a/b.TargetRenewableenergyconsumptionKPI–MetricnumeratorTotalrenewableenergypurchasedannuallyKPI–Metricdenominator(intensitytargetsonly)TotalannualglobalelectricityconsumptionBaseyear2015Startyear2015Targetyear2040KPIinbaselineyear48KPIintargetyear100%achievedinreportingyear100TargetStatusExpiredPleaseexplainRE1istheScope2portionofAb3.In2012,wesetalongtermgoaltopurchaseenoughrenewableenergytomatchalltheelectricityweconsumegloballyonanannualbasis.In2017,weachievedit:Google’stotalpurchaseofenergyfromsourceslikewindandsolarexceededtheamountofelectricityusedbyouroperationsaroundtheworld,includingofficesanddatacenters.Whilewe’restilldrawingpowerfromthegrid,someofwhichisfromfossilfuelresources,we’repurchasingenoughwindandsolarenergytomatcheverymegawatt-hour(MWh)ofelectricityourdatacenterandofficeoperationsconsumeannually.Googleisthelargestcumulativecorporatepurchaserofrenewableenergyintheworld.Since2010,we’vesigned26agreementstotalingnearly3.0gigawattsofrenewableenergy.Reachingour100%renewablepurchasinggoalmeansthatGooglebuysonanannualbasisthesameamountofmegawatt-hours(MWh)of


renewableenergy—boththephysicalenergyanditscorrespondingrenewableenergycertificates(RECs)—astheamountofMWhofelectricitythatweconsumeforouroperationsaroundtheworld.Wherepossible,webuythisenergydirectlyfromourutilityprovidersandfromgreenenergyfacilitiesinthesamegridregionsasourdatacenters.Matching100%renewableenergyisjustthebeginning.We’rebuildingnewdatacentersandoffices,andasdemandforGoogleproductsgrows,sodoesourelectricityload.Weneedtobeconstantlyaddingrenewablestoourportfoliotokeepup.Sowe’llkeepsigningcontractstobuymorerenewableenergy.Andinthoseregionswherewecan’tyetbuyrenewables,we’llkeepworkingonwaystohelpopenthemarket.In2015,GooglejoinedtheRE100initiative—aninitiativeledbytheClimateGroupandCDP—aswellastheWeMeanBusinesscoalition,committingtoprocure100%ofourelectricityfromrenewablesources(seehttps://www.whitehouse.gov/the-press-office/2015/07/27/fact-sheet-white-house-launches-american-business-act-climate-pledge).Asaninterimtargettowardsour100%renewableenergygoal,wecommittedtotriplingourpurchasesofrenewableenergyby2025(seeAbs2andhttps://www.theclimategroup.org/news/google-joins-re100-target-triple-renewable-energy-purchases-2025).PartofemissionstargetAbs3Isthistargetpartofanoverarchinginitiative?RE100

TargetRenewableenergyconsumptionKPI–MetricnumeratorTotalrenewableenergyproductioncapacityinstalled,minus1.1GW(installedcapacityduringbaseyear)KPI–Metricdenominator(intensitytargetsonly)2.3GWofrenewableenergyproductioncapacityinstalled.Thisrepresentsourtargetof3.4GWminus1.1GW(installedcapacityduringbaseyear)Baseyear2015Startyear2015Targetyear2025KPIinbaselineyear1.1KPIintargetyear


3.4%achievedinreportingyear83TargetStatusUnderwayPleaseexplainRE2istheScope2portionofAbs2andisourinterimtargetforRE1.OnJuly27,2015,aspartoftheWhiteHouseAmericanBusinessActonClimatePledge,Googlecommittedtotriplingourpurchasesofrenewables(then1.1GW)by2025(see:https://www.whitehouse.gov/the-press-office/2015/07/27/fact-sheet-white-house-launches-american-business-act-climate-pledgeandhttps://www.theclimategroup.org/news/google-joins-re100-target-triple-renewable-energy-purchases-2025).Thisisexpectedtoresultininstalledproductioncapacityof3.4GWofrenewablepowerby2025.AsofDecember31,2017,wehadenteredinto26long-termrenewableenergyagreementswhich,together,areestimatedtorepresent3.0GWofinstalledproductioncapacity,puttingus88%ofthewaytowardsthisgoal.PartofemissionstargetAbs2Isthistargetpartofanoverarchinginitiative?RE100

C4.3

(C4.3)Didyouhaveemissionsreductioninitiativesthatwereactivewithinthereportingyear?Notethatthiscanincludethoseintheplanningand/orimplementationphases.YesC4.3a

(C4.3a)Identifythetotalnumberofprojectsateachstageofdevelopment,andforthoseintheimplementationstages,theestimatedCO2esavings.

Numberofprojects

TotalestimatedannualCO2esavingsinmetrictonnesCO2e(onlyforrowsmarked*)

Underinvestigation 4


Numberofprojects

TotalestimatedannualCO2esavingsinmetrictonnesCO2e(onlyforrowsmarked*)

Tobeimplemented* 3 596

Implementationcommenced* 1 221

Implemented* 64 1406

Nottobeimplemented 3

C4.3b

(C4.3b)Providedetailsontheinitiativesimplementedinthereportingyearinthetablebelow.ActivitytypeEnergyefficiency:BuildingservicesDescriptionofactivityOther,pleasespecify(Variousenergyefficiencyprojects)EstimatedannualCO2esavings(metrictonnesCO2e)252ScopeScope1Scope2(market-based)Voluntary/MandatoryVoluntaryAnnualmonetarysavings(unitcurrency–asspecifiedinCC0.4)1282198Investmentrequired(unitcurrency–asspecifiedinCC0.4)13772456Paybackperiod11-15yearsEstimatedlifetimeoftheinitiative21-30yearsComment


Ongoingimplementationofmulti-yearenergyefficiencyprojectsinourNewYorkofficeaspartoftheNYCCarbonChallenge.In2017,significantprogresswasmadeon5projects.Googlehasmanyemissionsreductioninitiativesandwe'vechosenonlyasmallsubsettodetailouthereasexamplesoftheactivitieswe'veimplementedinthereportingyear.Amountsforinvestmentrequiredarepre-incentive(theydonotincorporateanypotentialrebatesearned).Paybackperiodsarepost-incentive(theydoincorporateanypotentialrebatesearned).

ActivitytypeEnergyefficiency:BuildingservicesDescriptionofactivityOther,pleasespecify(Variousenergyefficiencyprojects)EstimatedannualCO2esavings(metrictonnesCO2e)138ScopeScope2(market-based)Voluntary/MandatoryVoluntaryAnnualmonetarysavings(unitcurrency–asspecifiedinCC0.4)164397Investmentrequired(unitcurrency–asspecifiedinCC0.4)0Paybackperiod1-3yearsEstimatedlifetimeoftheinitiative6-10yearsCommentEnergyefficiencyprojectsinourSanFranciscoBayareaoffices.In2017,31individualprojectswereimplemented.Googlehasmanyemissionsreductioninitiativesandwe'vechosenonlyasmallsubsettodetailouthereasexamplesoftheactivitieswe'veimplementedinthereportingyear.Amountsforinvestmentrequiredarepre-incentive(theydonotincorporateanypotentialrebatesearned).Paybackperiodsarepost-incentive(theydoincorporateanypotentialrebatesearned).

ActivitytypeEnergyefficiency:Buildingservices


DescriptionofactivityOther,pleasespecify(Variousenergyefficiencyprojects)EstimatedannualCO2esavings(metrictonnesCO2e)677ScopeScope1Scope2(market-based)Voluntary/MandatoryVoluntaryAnnualmonetarysavings(unitcurrency–asspecifiedinCC0.4)58541Investmentrequired(unitcurrency–asspecifiedinCC0.4)97394Paybackperiod1-3yearsEstimatedlifetimeoftheinitiative6-10yearsCommentPursualofLEEDEB:O&MGoldcertificationforourofficeinHyderabad,India,whichincludes7energyefficiencyprojectsimplementedin2017.Googlehasmanyemissionsreductioninitiativesandwe'vechosenonlyasmallsubsettodetailouthereasexamplesoftheactivitieswe'veimplementedinthereportingyear.Amountsforinvestmentrequiredarepre-incentive(theydonotincorporateanypotentialrebatesearned).Paybackperiodsarepost-incentive(theydoincorporateanypotentialrebatesearned).

ActivitytypeEnergyefficiency:BuildingservicesDescriptionofactivityOther,pleasespecify(Variousenergyefficiencyprojects)EstimatedannualCO2esavings(metrictonnesCO2e)52ScopeScope2(market-based)Voluntary/Mandatory


VoluntaryAnnualmonetarysavings(unitcurrency–asspecifiedinCC0.4)26224Investmentrequired(unitcurrency–asspecifiedinCC0.4)12135Paybackperiod1-3yearsEstimatedlifetimeoftheinitiativeOngoingCommentImplementationof5fine-tuninginitiativestoimproveenergymanagementatourofficeinKirkland,Washingtonin2017.Googlehasmanyemissionsreductioninitiativesandwe'vechosenonlyasmallsubsettodetailouthereasexamplesoftheactivitieswe'veimplementedinthereportingyear.Amountsforinvestmentrequiredarepre-incentive(theydonotincorporateanypotentialrebatesearned).Paybackperiodsarepost-incentive(theydoincorporateanypotentialrebatesearned).

ActivitytypeEnergyefficiency:BuildingservicesDescriptionofactivityOther,pleasespecify(Variousenergyefficiencyprojects)EstimatedannualCO2esavings(metrictonnesCO2e)186ScopeScope2(market-based)Voluntary/MandatoryVoluntaryAnnualmonetarysavings(unitcurrency–asspecifiedinCC0.4)27766Investmentrequired(unitcurrency–asspecifiedinCC0.4)9517Paybackperiod1-3yearsEstimatedlifetimeoftheinitiative


OngoingCommentImplementationof12fine-tuninginitiativestoimproveenergymanagementatourofficeinDublin,Irelandin2017.Googlehasmanyemissionsreductioninitiativesandwe'vechosenonlyasmallsubsettodetailouthereasexamplesoftheactivitieswe'veimplementedinthereportingyear.Amountsforinvestmentrequiredarepre-incentive(theydonotincorporateanypotentialrebatesearned).Paybackperiodsarepost-incentive(theydoincorporateanypotentialrebatesearned).

ActivitytypeEnergyefficiency:BuildingservicesDescriptionofactivityLightingEstimatedannualCO2esavings(metrictonnesCO2e)86ScopeScope2(market-based)Voluntary/MandatoryVoluntaryAnnualmonetarysavings(unitcurrency–asspecifiedinCC0.4)18000Investmentrequired(unitcurrency–asspecifiedinCC0.4)30000Paybackperiod1-3yearsEstimatedlifetimeoftheinitiative16-20yearsCommentSmallpilottoupgradefluorescentfixturestoLEDswithsmartcontrolsatourIowadatacenter.Thisrepresentsprogressmadeonthisprojectin2017.Googlehasmanyemissionsreductioninitiativesandwe'vechosenonlyasmallsubsettodetailouthereasexamplesoftheactivitieswe'veimplementedinthereportingyear.Amountsforinvestmentrequiredarepre-incentive(theydonotincorporateanypotentialrebatesearned).Paybackperiodsarepost-incentive(theydoincorporateanypotentialrebatesearned).


ActivitytypeEnergyefficiency:BuildingservicesDescriptionofactivityHVACEstimatedannualCO2esavings(metrictonnesCO2e)15ScopeScope2(market-based)Voluntary/MandatoryVoluntaryAnnualmonetarysavings(unitcurrency–asspecifiedinCC0.4)150000Investmentrequired(unitcurrency–asspecifiedinCC0.4)0Paybackperiod1-3yearsEstimatedlifetimeoftheinitiative11-15yearsCommentReplacetwo-stagefiltrationwithsingle-stagefiltrationforrooftopHVACunitsatourIowadatacenter.Thisrepresentsprogressmadeonthisprojectin2017.Googlehasmanyemissionsreductioninitiativesandwe'vechosenonlyasmallsubsettodetailouthereasexamplesoftheactivitieswe'veimplementedinthereportingyear.Amountsforinvestmentrequiredarepre-incentive(theydonotincorporateanypotentialrebatesearned).Paybackperiodsarepost-incentive(theydoincorporateanypotentialrebatesearned).

C4.3c

(C4.3c)Whatmethodsdoyouusetodriveinvestmentinemissionsreductionactivities?Method Comment

Financialoptimizationcalculations

Weconductpaybackcalculationstodecidewhichemissionsreductionactivitieswillbesthelpusmeetourcarbonneutralgoalanddeliverthebestfinancialreturnstothecompany.


C4.5

(C4.5)Doyouclassifyanyofyourexistinggoodsand/orservicesaslow-carbonproductsordotheyenableathirdpartytoavoidGHGemissions?YesC4.5a

(C4.5a)Providedetailsofyourproductsand/orservicesthatyouclassifyaslow-carbonproductsorthatenableathirdpartytoavoidGHGemissions.LevelofaggregationGroupofproductsDescriptionofproduct/GroupofproductsGSuite(includingGSuiteforEducation)isasetofcloud-basedintelligentappsdesignedwithreal-timecollaborationandmachineintelligencetobringpeopletogetherandhelpthemworksmarter.Morethan2millionpayingbusinessesuseGSuite.GSuiteincludes:Gmail,Drive,Docs,SheetsandSlides,Calendar,Hangouts,Keep,SitesandCloudSearch.GSuiteforEducationisthesamesetofappsasGSuite,butincludesClassroom,andisdesignedwithfeaturesthatmakeworkeasierandbringteachersandstudentstogether.Therearemorethan60millionGSuiteforEducationusersworldwide.Aretheselow-carbonproduct(s)ordotheyenableavoidedemissions?Low-carbonproductTaxonomy,projectormethodologyusedtoclassifyproduct(s)aslow-carbonortocalculateavoidedemissionsOther,pleasespecify(Ourownmethodology)%revenuefromlowcarbonproduct(s)inthereportingyearCommentAnumberofGoogle'sproductsandservicesdirectlyhelpusersavoidScope2GHGemissions.Emissionsareavoidedduetoourdatacenterenergyefficiencyeffortsaswellasourcarbonneutrality.Thismeansbusinessesthatuseourcloud-basedproductsaregreenertoo.WestudiedtheenergyefficiencybenefitsofourproductsbylookingattheuseofGoogleAppsatlarge.ByswitchingtoGoogleApps(PDF),companieshavereducedofficecomputingcosts,energyuse,andcarbonemissionsby65%to90%.Sinceourcloudiscarbonneutral,wehelpfurthermitigatethecarbonimpactforbusinessesthatuseGoogleApps.TheexperienceofoneofourlargeGoogleAppsclients,theU.S.GeneralServicesAdministration(GSA),supportsthesefindings.ByswitchingtoGoogleAppsforitsapproximately17,000users,theGSA


reducedserverenergyconsumptionbynearly90%andcarbonemissionsby85%.Thisrepresentsanannualemissionsreductionof1,570tonnesofCO2.Formoreinformation,seeourwhitepaper"GoogleApps:EnergyEfficiencyintheCloud":http://static.googleusercontent.com/external_content/untrusted_dlcp/www.google.com/en/us/green/pdf/google-apps.pdf

LevelofaggregationProductDescriptionofproduct/GroupofproductsGmail:Gmailisadvancedemailwithahugeinbox,lightning-fastsearch,built-ininstantmessaging,voicecallingandvideochat.Therearecurrently1billionGmailusers.Aretheselow-carbonproduct(s)ordotheyenableavoidedemissions?Low-carbonproductTaxonomy,projectormethodologyusedtoclassifyproduct(s)aslow-carbonortocalculateavoidedemissionsOther,pleasespecify(Ourownmethodology)%revenuefromlowcarbonproduct(s)inthereportingyearCommentAnumberofGoogle'sproductsandservicesdirectlyhelpusersavoidScope2GHGemissions.Forexample,Gmail,Google'scloud-basedemailservice,ismoreenergyefficientthanemailhostedlocally.Becausethecloudsupportsmanyproductsatatime,itcanmoreefficientlydistributeresourcesamongmanyusers.Thatmeanswecandomorewithlessenergy—andotherbusinessescantoo.Inaddition,we'veengineeredourcloud-basedservicestorunonefficientcustom-designedserversthatliveindatacentersthatwe’vebuilttobeasefficientaspossible.LawrenceBerkeleyNationalLaboratoryrecentlypublishedresearchindicatingthatmovingallofficeworkersintheUnitedStatestothecloudcouldreducetheenergyusedbyinformationtechnologybyupto87%.Tolearnmoreabouttheenergyefficiencypotentialofcloud-basedsoftware,seethepaper:http://crd.lbl.gov/assets/pubs_presos/ACS/cloud_efficiency_study.pdfBusinessesthatuseGmailhavedecreasedtheenvironmentalimpactoftheiremailservicebyupto98%comparedtothosethatrunemailonlocalservers.GooglecanprovideGmailserviceto80companiesforthesameamountofenergythatasinglecompanywouldtypicallyusetorunemailserviceslocally.Smallbusinesseswithfewerthan50peoplecansaveupto172.8kWhofenergyand101.6kgofcarbonperuserperyearbyusingGmail,resultingin1,490,925tonnesofCO2netsavingsoveroneyear.Furtherdetailsandmethodologycanbefoundinourpublishedwhitepaper"Google'sGreenComputing:EfficiencyatScale".(See:http://static.googleusercontent.com/external_content/untrusted_dlcp/www.google.com/en/us/green/pdfs/google-green-computing.pdf)


LevelofaggregationGroupofproductsDescriptionofproduct/GroupofproductsGoogleCloudPlatform:GoogleCloudPlatformenablesdeveloperstobuild,test,anddeployapplicationsonGoogle’shighly-scalableandreliableinfrastructure.Keyproductsinclude:ComputeEngine,AppEngine,ContainerEngine,BigQuery,CloudStorage,CloudBigtable,CloudNetworking,andCloudMachineLearningFormoreinformationonGoogleCloudPlatform,see:https://cloud.google.com/products/Aretheselow-carbonproduct(s)ordotheyenableavoidedemissions?Low-carbonproductTaxonomy,projectormethodologyusedtoclassifyproduct(s)aslow-carbonortocalculateavoidedemissionsOther,pleasespecify(Ourownmethodology)%revenuefromlowcarbonproduct(s)inthereportingyearCommentAnumberofGoogle'sproductsandservicesdirectlyhelpusersavoidscope2GHGemissions.WhendevelopersandbusinessesworkinthecloudwithGoogleCloudPlatform,they'reusinganinfrastructurethatuses50%lessenergythantheaveragedatacenter,iscarbonneutral,andadherestothehighestcertifiedenvironmental,healthandsafetystandards.Infact,comparedwithfiveyearsago,wenowdeliveraroundseventimesasmuchcomputingpowerwiththesameamountofelectricalpower.Googleservices,whilealsoreapingthebenefitsofourcommitmenttorenewableenergyandouron-goingworktoincreaseefficiency.FormoreinformationonGoogleCloudProducts&Services,see:https://cloud.google.com/products/SeealsoourresponseabovespecifictoGmail,whichisoneofourCloud-basedservices.

LevelofaggregationProductDescriptionofproduct/GroupofproductsGoogleMapshelpsassistpeopleastheynavigateandexploretheworld,wherevertheyare.WithGoogleMapsyougetalltheinformationyouneedinoneplaceincludingbusinessinformation,ratingsandreviews,andmorefor100+millionplacesaroundtheworld.Aretheselow-carbonproduct(s)ordotheyenableavoidedemissions?AvoidedemissionsTaxonomy,projectormethodologyusedtoclassifyproduct(s)aslow-carbonortocalculateavoidedemissionsOther,pleasespecify(Ourownmethodology)


%revenuefromlowcarbonproduct(s)inthereportingyearCommentAvoidedemissionsrepresentthethirdparty'sScope1emissions.SeveralfeaturesinGoogleMapshelppeoplereducetheirpersonalcarbonfootprintbyfacilitatinguseofalternateformsoftransportation.WithGoogleMapsyoucanpinpointtheplacesandinformationyouneedquickly,whetherit'showmanyminutesuntilthenextbusarrives,orhowlongitwilltaketowalkorbikefromworktohome.GoogleMapshastransitinformationfornearly7,000agencies,morethan3.8milliontransitstations,and20,000towns/citiesin78countries.Weprovideover1billionkmworthoftransitresultseveryday.Formoreinformation,seeourblogpostonGoogleMapsandtransit:http://googleblog.blogspot.com/2014/05/hop-on-boardand-go-almost-anywherewith.html

LevelofaggregationProductDescriptionofproduct/GroupofproductsProjectSunroofAretheselow-carbonproduct(s)ordotheyenableavoidedemissions?AvoidedemissionsTaxonomy,projectormethodologyusedtoclassifyproduct(s)aslow-carbonortocalculateavoidedemissionsOther,pleasespecify(Ourownmethodology)%revenuefromlowcarbonproduct(s)inthereportingyearCommentAvoidedemissionsrepresentthethirdparty'sScope1and/orScope2emissions.ProjectSunroofisaGoogleproductthathelpsitsusersdecidewhetherornottogosolar.IfauserenterstheiraddressontheProjectSunroofsite,Googlewilluse3Dmappingofrooftopsandnearbyobstructionstoestimatepotentialsolarenergyproductioniftheyweretoinstallarooftopsolarsystem.ProjectSunroofcombinesthisproductionestimatewithdetailed,localizedinformationaboutweather,utilityrates,solarcosts,andincentivestogenerateanaccurateestimateofthefinancialbenefitsofgoingsolar.Theproductalsomakesiteasyforuserstoconnectwithsolarinstallersandtakethenextsteptowardsgoingsolar.From2015to2017,ProjectSunroofhasmappedmorethan67millionrooftopsin8,900cities.Formoreinformation,see:https://www.google.com/get/sunroof

LevelofaggregationProductDescriptionofproduct/GroupofproductsProjectAirView


Aretheselow-carbonproduct(s)ordotheyenableavoidedemissions?AvoidedemissionsTaxonomy,projectormethodologyusedtoclassifyproduct(s)aslow-carbonortocalculateavoidedemissionsOther,pleasespecify(Ourownmethodology)%revenuefromlowcarbonproduct(s)inthereportingyearCommentAvoidedemissionsrepresentthethirdparty'sScope1and/orScope2emissions.Forthepastfewyears,GoogleEarthOutreachhasworkedwiththeEnvironmentalDefenseFund(EDF)tomapthousandsofmethaneleaksfromnaturalgaslinesunderselectU.S.citystreetsusingStreetViewcarsequippedwithmethaneanalyzers.In2017,GoogleEarthOutreachworkedwiththeEnvironmentalDefenseFund(EDF)andAclimatoreleaseheatmapswithhyper-localairqualityinformationforthreeregionsinCaliforniathatcontainedhundredsofmillionsofambientairqualitydatapointsmeasuredbyGoogleStreetViewcarsequippedwithairqualitysensors.Atleast3peer-reviewedsciencearticleshavebeenpublishedaroundthiswork.

LevelofaggregationProductDescriptionofproduct/GroupofproductsNestLearningThermostatAretheselow-carbonproduct(s)ordotheyenableavoidedemissions?AvoidedemissionsTaxonomy,projectormethodologyusedtoclassifyproduct(s)aslow-carbonortocalculateavoidedemissionsOther,pleasespecify(Ourownmethodology)%revenuefromlowcarbonproduct(s)inthereportingyearCommentAvoidedemissionsrepresentthethirdparty'sScope1and/orScope2emissions.TheNestLearningThermostatcontrolsresidentialheatingandcoolingsystems,reduceshomeenergyconsumption,andhelpsachievecollectivesavings.ItuseslearningalgorithmsandsmartcontroloftheheatingandcoolingsystemstoreducehomeenergyconsumptionandtheassociatedScope1andScope2emissions.Mostpeopleleavethethermostatatonetemperatureandforgettochangeit,whiletheNestThermostatlearnsyourschedule,programsitselfandcanbecontrolledfromyourphone.EnergysavingsstudiesconductedbyNestandindependentpartiesshowthat,onaverage,theNestThermostatsavesUScustomersabout10-12%ontheirheatingbillsandabout15%ontheircoolingbills.AsofDecember31,2017,NestThermostatshavehelpedcustomerssavemorethan17billionkWhofenergycombined,basedonaveragesavingsstudies—enoughenergytopowerallofSanFrancisco’selectricityconsumptionforthreeyears.That’sequivalenttoavoiding5.7million


tCO2eofemissions.Nest’sRushHourRewardsprogramworksinpartnershipwithutilitiestoreduceenergyuseduringtimesofpeakdemand.Duringthe2017solareclipse,NestlaunchedaspecialRushHourprogramwithanopt-infeaturethatallowedNestThermostatstoautomaticallypre-coolcustomers’homes,reducingdemandonthegridatatimewhensolarenergyproductiondroppedbythousandsofmegawatts.Morethan750,000NestThermostatsworkedtogetheracrosstheUnitedStatestoreduceenergydemandby700MW.Formoreinformation,see“SolarEclipse,MeettheNestThermostat,”InsideNest(blog),August10,2017,https://nest.com/blog/2017/08/10/solar-eclipse-meet-the-nest-thermostat/.FormoreinformationonhowNesthelpsuserssaveenergy,see:-Impact:https://nest.com/downloads/press/documents/nest-corporate-fact-sheet.pdf-RushHourRewards(helpsreducetheloadontheelectricalgridduringtimeswhendemandforenergyishigh):https://nest.com/support/article/What-is-Rush-Hour-Rewards-SeasonalSavings:https://nest.com/support/article/What-is-Seasonal-Savings

LevelofaggregationProductDescriptionofproduct/GroupofproductsMakaniAretheselow-carbonproduct(s)ordotheyenableavoidedemissions?AvoidedemissionsTaxonomy,projectormethodologyusedtoclassifyproduct(s)aslow-carbonortocalculateavoidedemissionsOther,pleasespecify(Ourownmethodology)%revenuefromlowcarbonproduct(s)inthereportingyearCommentAvoidedemissionsrepresentthethirdparty'sScope1and/orScope2emissions.Makani,aprojectinX,isworkingtomakecleanenergyaccessibleforeveryonebydevelopingenergykites,anewtypeofwindturbinethatcanaccessstrongerandsteadierwindsathigheraltitudestogeneratemoreenergywithlessmaterials.Thesehigh-performanceaerodynamicenergykitescaneliminate90%ofthematerialsofconventionalwindturbines,generate50%moreenergyandbesitedinmorelocationswhilerequiringlessgroundspace,thusbringingelectricitytolocationswhereaccesstoenergyislimited.Formoreinformation,see:https://x.company/makani/

LevelofaggregationCompany-wideDescriptionofproduct/GroupofproductsOther:AlphabetandGoogleoffermanyproductsandservicesinadditiontothosementionedabove,includingSearch,Chrome,Android,Play,Travel,Translate,Payments,Fiber,Photos,andYouTube.Google'scoreproductsandplatforms


suchasAndroid,Chrome,Gmail,GoogleMaps,GooglePlay,Search,andYouTubeeachhaveoveronebillionmonthlyactiveusers.YouTubehasoverabillionusers-almostone-thirdofallpeopleontheInternet-andeverydaypeoplewatchhundredsofmillionsofhoursonYouTubeandgeneratebillionsofviews.Aretheselow-carbonproduct(s)ordotheyenableavoidedemissions?Low-carbonproductTaxonomy,projectormethodologyusedtoclassifyproduct(s)aslow-carbonortocalculateavoidedemissionsOther,pleasespecify(Ourownmethodology)%revenuefromlowcarbonproduct(s)inthereportingyearCommentManyofAlphabet'sandGoogle'sproductsandservicesdirectlyhelpusersavoidScope2GHGemissions,sinceGoogledatacentersuse50%lessenergythantypicaldatacenters,wearecarbonneutral,andweadheretothehighestcertifiedenvironmental,healthandsafetystandards.Comparedwithfiveyearsago,wenowdeliveraroundseventimesasmuchcomputingpowerwiththesameamountofelectricalpower.

C5.Emissionsmethodology

C5.1

(C5.1)Provideyourbaseyearandbaseyearemissions(Scopes1and2).Scope1BaseyearstartJanuary12009BaseyearendDecember312009Baseyearemissions(metrictonsCO2e)10919CommentScope2(location-based)BaseyearstartJanuary12009BaseyearendDecember312009


Baseyearemissions(metrictonsCO2e)1147991CommentScope2(market-based)BaseyearstartJanuary12009BaseyearendDecember312009Baseyearemissions(metrictonsCO2e)1147991CommentC5.2

(C5.2)Selectthenameofthestandard,protocol,ormethodologyyouhaveusedtocollectactivitydataandcalculateScope1andScope2emissions.TheGreenhouseGasProtocol:ACorporateAccountingandReportingStandard(RevisedEdition)C6.Emissionsdata

C6.1

(C6.1)Whatwereyourorganization’sgrossglobalScope1emissionsinmetrictonsCO2e?Row1GrossglobalScope1emissions(metrictonsCO2e)66549C6.2

(C6.2)Describeyourorganization’sapproachtoreportingScope2emissions.Row1


Scope2,location-basedWearereportingaScope2,location-basedfigureScope2,market-basedWearereportingaScope2,market-basedfigureCommentC6.3

(C6.3)Whatwereyourorganization’sgrossglobalScope2emissionsinmetrictonsCO2e?Row1Scope2,location-based3301392Scope2,market-based(ifapplicable)509334C6.4

(C6.4)Arethereanysources(e.g.facilities,specificGHGs,activities,geographies,etc.)ofScope1andScope2emissionsthatarewithinyourselectedreportingboundarywhicharenotincludedinyourdisclosure?YesC6.4a

(C6.4a)ProvidedetailsofthesourcesofScope1andScope2emissionsthatarewithinyourselectedreportingboundarywhicharenotincludedinyourdisclosure.SourceNon-CO2sourcesofemissionsareexcludedfromthechemicalboundaryRelevanceofScope1emissionsfromthissourceEmissionsarenotrelevantRelevanceoflocation-basedScope2emissionsfromthissourceEmissionsarenotrelevantRelevanceofmarket-basedScope2emissionsfromthissource(ifapplicable)


EmissionsarenotrelevantExplainwhythesourceisexcludedOtherchemicalssuchasmethane(CH4)andnitrousoxide(N2O)areconsiderednegligibletoouroperationsandwereexcludedfromthechemicalboundary.

C6.5

(C6.5)Accountforyourorganization’sScope3emissions,disclosingandexplaininganyexclusions.PurchasedgoodsandservicesEvaluationstatusRelevant,calculatedMetrictonnesCO2e747564EmissionscalculationmethodologyThisyearwe’retransitioningtocollectingAlphabetallocatedsupplierscope1and2GHGemissionsdatadirectlyfromourhardwarecontractmanufacturersandcomponentsuppliersthroughtheCDPSupplyChainProgram.UntilwehaveCDPsupplierdatareportedtoAlphabet,we’readoptinganinterimapproachleveragingdatareportedlastyearbyoursupplierstoAlphabetandtoCDP.GHGemissionswereestimatedbyusingAlphabet’s2017inventoryPOspenddatatoscaleAlphabet’s2016GHGfootprintdataandfinancialintensitydatapubliclyreportedbysupplierstoCDPin2017.Thequalityoftheestimateislikelymoderate,giventhatAlphabet’sGHGfootprintdataandCDPsupplierdatamightnotbefullyrepresentativeofthepurchasedtechnology,geographyandallocatedembodiedGHGemissions.PercentageofemissionscalculatedusingdataobtainedfromsuppliersorvaluechainpartnersExplanationCapitalgoodsEvaluationstatusRelevant,calculatedMetrictonnesCO2e1319196EmissionscalculationmethodologyTocalculateemissionsfromcapitalgoodsforhardwaremanufacturing,wesimilarlyadoptedaninterimapproachleveragingdatareportedlastyearbyoursupplierstoAlphabetandtoCDP.GHGemissionswereestimatedbyusingAlphabet’s2017inventoryPOspenddatatoscaleAlphabet’s2016GHGfootprintdataandfinancialintensitydatapubliclyreportedbysupplierstoCDPin2017.Toestimateemissionsfromdatacenterconstruction,weusedpublished


constructionemissionsdataandappliedittoourconstructionactivitydata.Giventhelackofhigh-qualitydataonembodiedemissionsofhardware,equipmentandbuildings,theestimatesareofonlymoderatequality.PercentageofemissionscalculatedusingdataobtainedfromsuppliersorvaluechainpartnersExplanationFuel-and-energy-relatedactivities(notincludedinScope1or2)EvaluationstatusNotrelevant,calculatedMetrictonnesCO2e0EmissionscalculationmethodologyForfuelandenergyrelatedScope3emissions,weperformedananalysisofourtotalenergyconsumedusinglifecycleinventoryandEEIOdatasets.Thequalityofthisestimateislikelymoderatetolow,astheupstreamfuelandenergyactivities’LCIandEEIOdatamightnotbefullyrepresentativeofthespecificandcurrentenergygenerationtechnologiesandgeographieswhereweoperate.PercentageofemissionscalculatedusingdataobtainedfromsuppliersorvaluechainpartnersExplanationWeestimatedthattheemissionsassociatedwithfuel-and-energy-relatedactivitiesnotcoveredinourScope1and2aredeminimisrelativetoouroverallfootprint.UpstreamtransportationanddistributionEvaluationstatusRelevant,calculatedMetrictonnesCO2e296204EmissionscalculationmethodologyWecalculatedGHGemissionsfromtransportationandwarehousingofourconsumerproductsanddatacenterequipmentbythirdpartylogisticsproviders,bothinboundandoutbound,paidforbyAlphabet.SometransportationprovidersreportedcustomerallocatedGHGemissionstheycalculatedalignedwiththeGHGProtocolbasedonfueluseorweight-distancedataandroutingassociatedwithashipment.WeusedactivitydatatocalculateGHGemissionsfromtheothertransportationproviders,obtaineddirectlyfromtheprovidersorfromourinternaldatabasestrackingweightandoriginanddestinationofeachshipment.Electricityandnaturalgasuseinwarehousingwereestimatedusingaverageenergyconsumptionpersquarefoot(CBECS2012)andthenmultipliedbythesquarefeetallocatedfromthewarehousetoAlphabet.Thisexcludedanyrefrigerants,andalsolikelyoverestimatednaturalgasuse.Percentageofemissionscalculatedusingdataobtainedfromsuppliersorvaluechainpartners


90ExplanationWastegeneratedinoperationsEvaluationstatusNotrelevant,explanationprovidedMetrictonnesCO2eEmissionscalculationmethodologyFortheemissionsassociatedwithwastegeneratedinouroperations,weperformedananalysisusingourannualspendandannualwastegeneration,andusedlifecycleinventoriesandEEIOdatasetstoestimatethetotalemissions.Overall,thedataqualityisestimatedtobelow,astheLCIandEEIOdatasetsmightnotbefullyrepresentativeofthegeographiesandtechnologiesusedinthecountiesandmunicipalitieswhereweoperate.PercentageofemissionscalculatedusingdataobtainedfromsuppliersorvaluechainpartnersExplanationEmissionsassociatedwithwastefromouroperationswereestimatedtobedeminimisrelativetoouroverallfootprint.BusinesstravelEvaluationstatusRelevant,calculatedMetrictonnesCO2e233376EmissionscalculationmethodologyWeestimatedbusinesstravelusingdatathatincludesthedistanceofeachtripandtheseatingclassforairtravelandrailtravel.WethenappliedtherelevantemissionfactorprovidedinCDP’sguidance.Wealsoincludeddatafromrentalcarcompaniesontotalfuelconsumptionfromallrentalcarreservations.Giventhatourinternaldatacollectionforbusinesstravelisrobust,thequalityoftheresultingemissionsestimateisalsolikelyhigh,assumingthatthequalityoftheCDP-providedemissionsfactorsisalsohigh.PercentageofemissionscalculatedusingdataobtainedfromsuppliersorvaluechainpartnersExplanationEmployeecommutingEvaluationstatusRelevant,calculatedMetrictonnesCO2e122683Emissionscalculationmethodology


Weestimatedemployeecommutingusinginternaldataonemployeesandapplyingtheaverageone-waycommutingdistanceandaveragepassengervehiclefueleconomyfromU.S.governmentdatasources.Weexcludedtripsmadebyourshuttles,vanpools,andself-poweredcommuters(walking,biking,etc.)asthesecommutingemissionswerecapturedinScope1emissionsorare0.ThequalityofthisestimateisprobablymoderateasweusedaUS-averagecommutedistancegiventhelackofbetterdata.PercentageofemissionscalculatedusingdataobtainedfromsuppliersorvaluechainpartnersExplanationUpstreamleasedassetsEvaluationstatusNotrelevant,explanationprovidedMetrictonnesCO2eEmissionscalculationmethodologyPercentageofemissionscalculatedusingdataobtainedfromsuppliersorvaluechainpartnersExplanationUpuntil2016,weincludedonsitefuelconsumptioninleasedbuildingsaspartofourScope3emissions.In2017,wemovedthiscategoryintoourScope2emissionsaspertherequirementsofWRI'sGHGProtocolScope2Guidance.Ourestimationmethodologyforthiscategoryhasnotchanged:weestimatedouremissionsfromonsitefuelconsumptionbytakingthesquarefootageofourleasedspaceandmultiplyingitbystandardofficefuelusageandemissionsfactorsfromtheCommercialBuildingsEnergyConsumptionSurvey(CBECS),agovernmentdatasource.AssumingthattheCBECSemissionsfactordataisgood,thequalityoftheestimateislikelymoderategiventhatwehavearobustinternalrealestatesquarefootagetrackingsystem.DownstreamtransportationanddistributionEvaluationstatusRelevant,calculatedMetrictonnesCO2e0EmissionscalculationmethodologyWeestimateddownstreamtransportationanddistributionforthoseAlphabetactivitiesthatweestimatedtobesignificantcomparedtoouroverallfootprint.Weusedinternalshipmentdataandemissionestimatesprovidedbytransportationvendors.Overall,thequalityofthisdataisestimatedtobemoderate.PercentageofemissionscalculatedusingdataobtainedfromsuppliersorvaluechainpartnersExplanationWeincludedoutboundtransportation(paidbyAlphabet)inthe"upstreamtransportationanddistribution"category.


ProcessingofsoldproductsEvaluationstatusNotrelevant,explanationprovidedMetrictonnesCO2eEmissionscalculationmethodologyPercentageofemissionscalculatedusingdataobtainedfromsuppliersorvaluechainpartnersExplanationWedonotsellintermediategoodsthatrequirefurtherprocessing.UseofsoldproductsEvaluationstatusNotrelevant,explanationprovidedMetrictonnesCO2eEmissionscalculationmethodologyPercentageofemissionscalculatedusingdataobtainedfromsuppliersorvaluechainpartnersExplanationIn2017,weconductedlife-cycleassessment(LCA)studiesforourflagshipproductsandproducedproduct-levelcarbonfootprintsbrokenoutbylifecyclestages(includingusephase).Thesewereincludedintheproductenvironmentalreportspublishedin2018ontheGoogleStoreSustainabilitysite(https://store.google.com/us/magazine/sustainability)andtheGoogleEnvironmentsite.Ourteamshaveoperationalcontrolovertheenergyefficiencyofourproductsandthisiswherewehavehistoricallyfocusedoureffortstomeasureandmitigateouremissions.We'vedoneaninitialassessmentofemissionsfromuseofsoldproductsandarefurtherdevelopingourmodel.EndoflifetreatmentofsoldproductsEvaluationstatusNotrelevant,explanationprovidedMetrictonnesCO2eEmissionscalculationmethodologyWehavebeguntocalculateemissionsassociatedwiththeend-of-lifetreatmentofsoldproductsthroughourlifecycleassessmentprocessandwewillcontinuetoexpandthisassessmentovertime.Ourinitialassessmentsidentifythiscategorytobeonethatdoesnothavesignificantlife-cycleimpact.Wecontinuetodevelopprogramstoextendthelifeofoursoldproductsandalsotoensureefficientmanagementofend-of-lifematerials.PercentageofemissionscalculatedusingdataobtainedfromsuppliersorvaluechainpartnersExplanation


Giventhesmallsizeofourproductportfolio,emissionsassociatedwithend-of-lifetreatmentofsoldproductswereestimatedtobedeminimisrelativetoouroverallfootprint.DownstreamleasedassetsEvaluationstatusNotrelevant,explanationprovidedMetrictonnesCO2eEmissionscalculationmethodologyPercentageofemissionscalculatedusingdataobtainedfromsuppliersorvaluechainpartnersExplanationWedonothaveanysignificantactivityleasingassetstootherorganizations.FranchisesEvaluationstatusNotrelevant,explanationprovidedMetrictonnesCO2eEmissionscalculationmethodologyPercentageofemissionscalculatedusingdataobtainedfromsuppliersorvaluechainpartnersExplanationWedonothavefranchises.InvestmentsEvaluationstatusNotrelevant,explanationprovidedMetrictonnesCO2eEmissionscalculationmethodologyPercentageofemissionscalculatedusingdataobtainedfromsuppliersorvaluechainpartnersExplanationWehaveselectedthe"operationalcontrol"boundarymethod.Wedonothaveanyadditionalentitiesoverwhichweexertoperationalcontrolthatarenotalreadyincludedinourinventory.Other(upstream)EvaluationstatusNotrelevant,explanationprovidedMetrictonnesCO2eEmissionscalculationmethodologyPercentageofemissionscalculatedusingdataobtainedfromsuppliersorvaluechainpartners


ExplanationWedonothaveotherrelevantupstreamimpacts.Other(downstream)EvaluationstatusNotrelevant,explanationprovidedMetrictonnesCO2eEmissionscalculationmethodologyPercentageofemissionscalculatedusingdataobtainedfromsuppliersorvaluechainpartnersExplanationWedonothaveotherrelevantdownstreamimpacts.Inpreviousyears,weusedthiscategoryforallScope3emissionsthatwerenotbrokenoutforbusinessreasons,toprotectcompetitiveinformation.C6.7

(C6.7)Arecarbondioxideemissionsfrombiologicallysequesteredcarbonrelevanttoyourorganization?YesC6.7a

(C6.7a)ProvidetheemissionsfrombiologicallysequesteredcarbonrelevanttoyourorganizationinmetrictonsCO2.14708C6.10

(C6.10)DescribeyourgrossglobalcombinedScope1and2emissionsforthereportingyearinmetrictonsCO2eperunitcurrencytotalrevenueandprovideanyadditionalintensitymetricsthatareappropriatetoyourbusinessoperations.Intensityfigure0.00000519Metricnumerator(GrossglobalcombinedScope1and2emissions)575883


MetricdenominatorunittotalrevenueMetricdenominator:Unittotal110855000000Scope2figureusedMarket-based%changefrompreviousyear70.41DirectionofchangeDecreasedReasonforchangeTheprimaryreasonforthisdecreaseisemissionsreductionactivitiesassociatedwithourprocurementofrenewables,whichwesignificantlyincreasedin2017ascomparedto2016.Asalargeandcomplexmulti-nationalcompany,it'simpossibletodeterminetheexactcauseofemissionsreductions,butweestimatethatthevastmajorityofthisdecreasecanbeattributedtoouradditionalprocurementofrenewablesin2017(abovethatin2016).In2017,ourwindandsolardealsproducedenoughrenewableenergytomatch100%oftheelectricityconsumptionofourdatacentersandoffices.Inaddition,wecontinuetodelivermoreandbetterservicesandproductstomoreusersusinglessenergyandfeweremissions,aswellastooperateourdatacentersandofficesmoreefficiently(see:https://www.google.com/about/datacenters/efficiency/).

Intensityfigure7.6Metricnumerator(GrossglobalcombinedScope1and2emissions)575883Metricdenominatorfulltimeequivalent(FTE)employeeMetricdenominator:Unittotal75750Scope2figureusedMarket-based%changefrompreviousyear67.45Directionofchange


DecreasedReasonforchangeTheprimaryreasonforthisdecreaseisemissionsreductionactivitiesassociatedwithourprocurementofrenewables,whichwesignificantlyincreasedin2017ascomparedto2016.Asalargeandcomplexmulti-nationalcompany,it'simpossibletodeterminetheexactcauseofemissionsreductions,butweestimatethatthevastmajorityofthisdecreasecanbeattributedtoouradditionalprocurementofrenewablesin2017(abovethatin2016).In2017,ourwindandsolardealsproducedenoughrenewableenergytomatch100%oftheelectricityconsumptionofourdatacentersandoffices.Inaddition,wecontinuetodelivermoreandbetterservicesandproductstomoreusersusinglessenergyandfeweremissions,aswellastooperateourdatacentersandofficesmoreefficiently(see:https://www.google.com/about/datacenters/efficiency/).ThisFTEemployeeintensityfigurewascalculatedbytakingourcombined2017Scope1andmarket-basedScope2emissionsdividedbyouraverage2017headcount.

Intensityfigure0.049Metricnumerator(GrossglobalcombinedScope1and2emissions)MetricdenominatorOther,pleasespecify(megawatthour(MWh)consumed)Metricdenominator:UnittotalScope2figureusedMarket-based%changefrompreviousyear78.62DirectionofchangeDecreasedReasonforchangeTheprimaryreasonforthisdecreaseisemissionsreductionactivitiesassociatedwithourprocurementofrenewables,whichwesignificantlyincreasedin2017ascomparedto2016.Asalargeandcomplexmulti-nationalcompany,it'simpossibletodeterminetheexactcauseofemissionsreductions,butweestimatethatthevastmajorityofthisdecreasecanbeattributedtoouradditionalprocurementofrenewablesin2017(abovethatin2016).In2017,ourwindandsolardealsproducedenoughrenewableenergytomatch100%oftheelectricityconsumptionofourdatacentersandoffices.Inaddition,wecontinuetodelivermoreandbetterservicesandproductstomoreusersusinglessenergyandfeweremissions,aswellastooperateourdatacentersandofficesmoreefficiently(see:https://www.google.com/about/datacenters/efficiency/).ThisMWhintensityfigurewascalculatedbytakingour2017


market-basedScope2emissionsofourdatacentersdividedbythe2017electricityconsumptionatourdatacenters.Forconfidentialityreasons,wearenotdisclosingthenumeratoranddenominator.

C7.Emissionsbreakdowns

C7.1

(C7.1)Doesyourorganizationhavegreenhousegasemissionsotherthancarbondioxide?YesC7.1a

(C7.1a)BreakdownyourtotalgrossglobalScope1emissionsbygreenhousegastypeandprovidethesourceofeachusedgreenhousewarmingpotential(GWP).

GreenhousegasScope1emissions(metrictonsofCO2e) GWPReference

CO2 66549 IPCCFifthAssessmentReport(AR5–100year)

C7.2

(C7.2)BreakdownyourtotalgrossglobalScope1emissionsbycountry/region.

Country/RegionScope1emissions(metrictonsCO2e)

UnitedStatesofAmerica 52340

Other,pleasespecify(Restofworld) 14209

C7.3

(C7.3)IndicatewhichgrossglobalScope1emissionsbreakdownsyouareabletoprovide.Pleaseselect


C7.5

(C7.5)BreakdownyourtotalgrossglobalScope2emissionsbycountry/region.

Country/Region

Scope2,location-based(metrictonsCO2e)

Scope2,market-based(metrictonsCO2e)

Purchasedandconsumedelectricity,heat,steamorcooling(MWh)

Purchasedandconsumedlow-carbonelectricity,heat,steamorcoolingaccountedinmarket-basedapproach(MWh)

UnitedStatesofAmerica 2563108 5394 Other,pleasespecify(Restofworld) 738284 503940

C7.6

(C7.6)IndicatewhichgrossglobalScope2emissionsbreakdownsyouareabletoprovide.PleaseselectC7.9

(C7.9)Howdoyourgrossglobalemissions(Scope1and2combined)forthereportingyearcomparetothoseofthepreviousreportingyear?DecreasedC7.9a

(C7.9a)Identifythereasonsforanychangeinyourgrossglobalemissions(Scope1and2combined)andforeachofthemspecifyhowyouremissionscomparetothepreviousyear.


Changeinemissions(metrictonsCO2e)

Directionofchange

Emissionsvalue(percentage) Pleaseexplaincalculation

Otheremissionsreductionactivities 1409553 Decreased 89

Theimpactofemissionreductionactivitiesin2017isa89%reductioncomparedtotheemissionswereportedlastyear.In2017,emissionsreductionactivitiesaccountedforalargeshareofouremissionreductions,primarilyfromtwoactivities--(1)In2017,ourgreenpowerpurchases(inexcessofour2016greenpowerpurchases)resultedinsignificantemissionsreductionsinourtotalfootprint(2)Inadditiontoemissionreductionsfromgreenpowerpurchases,ouremissionsalsodeclinedduetoemissionreductionprogramsandactivitiesatourdatacenters,suchasmachinelearning,improvedhardwareutilization,improvedoptimizationofdatacenteroperations,andmoreefficientdatacenterdesigns.Inadditiontothesetwoprimaryemissionsreductionactivities,wecontinuedtoexpandourportfolioofLEED-certifiedofficespaceaswellastoimplementotherefficiencyandemissionreductioninitiatives,suchasmakingoperationalimprovementstoofficebuildings,improvingtransportationprograms,andencouragingouremployeestooperateITequipmentmoreefficiently.Wecontinuetolookforwaystoincreaseouruseofcleanenergy,includingtryingnew,innovativetechnologiesatouroffices.In2017,ouradditionalrenewablepowerpurchases(inexcessofour2016renewablepowerpurchases)(1,408,147tCO2e)andourenergyefficiencyefforts(1,406tCO2e)togetherresultedinanadditionalreductionof1,409,553tCO2ebeyondour2016emissionsreductionactivities.In2017,ourtotalScope1andmarket-basedScope2emissionswere575,883tCO2e.Thereforewearrivedat89%asfollows:[(1,408,147+1,406)/575,883]*100=89%.Whilethesavingsgeneratedbyourenergyefficiencyinitiativescannotbedirectlyaccountedforinthisnumber,webelievethatouremissionsreductionactivitiesaremuchlargerthanweareabletoquantify.Wehavedoneourbesttoestimatethecontributionfromouremissionsreductionactivities,buttheactualnumberscouldbedifferentduetochangesinotherfactors,suchasemissionsfactorsandweather.Thisestimateshouldbeconsideredalowerboundasitdoesnotincludethemanysmallemissionreductionsprojectswe'veundertakenthataredifficulttoquantify.

Changeinoutput 1008979 Decreased 64

Asalargeandcomplexmulti-nationalcompany,therearemanyfactorsimpactingouremissionsanditisimpossibletoisolateperfectlyanyoneparticularfactorandquantifyitexactly.Baseduponthecomparisonof2016to2017reporteddata,growthofourbusinesscreateda64%decreaseinouremissionscomparedtotheemissionswereportedlastyear.Thischangeinoutputwascalculatedbytakingour2017Scope1andmarket-basedScope2emissionsminusthe2016Scope1andmarket-basedScope2emissions,dividedbythe2016Scope1andmarket-basedScope2emissions,thenmultipliedby100.Thispercentchangewouldbea13%increaseifthisfigurewerecalculatedusingourlocation-basedScope2emissions.

C7.9b


(C7.9b)AreyouremissionsperformancecalculationsinC7.9andC7.9abasedonalocation-basedScope2emissionsfigureoramarket-basedScope2emissionsfigure?Market-basedC8.Energy

C8.1

(C8.1)Whatpercentageofyourtotaloperationalspendinthereportingyearwasonenergy?Morethan0%butlessthanorequalto5%C8.2

(C8.2)Selectwhichenergy-relatedactivitiesyourorganizationhasundertaken.

Indicatewhetheryourorganizationundertakesthisenergy-relatedactivity

Consumptionoffuel(excludingfeedstocks) Yes

Consumptionofpurchasedoracquiredelectricity Yes

Consumptionofpurchasedoracquiredheat No

Consumptionofpurchasedoracquiredsteam No

Consumptionofpurchasedoracquiredcooling No

Generationofelectricity,heat,steam,orcooling Yes

C8.2a

(C8.2a)Reportyourorganization’senergyconsumptiontotals(excludingfeedstocks)inMWh.

Heatingvalue

MWhfromrenewablesources

MWhfromnon-renewablesources TotalMWh

Consumptionoffuel(excludingfeedstock) LHV(lowerheatingvalue) 96461 323860 420321


Heatingvalue

MWhfromrenewablesources

MWhfromnon-renewablesources TotalMWh

Consumptionofpurchasedoracquiredelectricity <FieldHidden> 6533642 1061539 7595181

Consumptionofself-generatednon-fuelrenewableenergy <FieldHidden> 9553 <FieldHidden> 13907

Totalenergyconsumption <FieldHidden> 6639657 1389752 8029409

C8.2b

(C8.2b)Selecttheapplicationsofyourorganization’sconsumptionoffuel.

Indicatewhetheryourorganizationundertakesthisfuelapplication

Consumptionoffuelforthegenerationofelectricity Yes

Consumptionoffuelforthegenerationofsteam No

Consumptionoffuelforthegenerationofcooling No

Consumptionoffuelforco-generationortri-generation Yes

C8.2c

(C8.2c)StatehowmuchfuelinMWhyourorganizationhasconsumed(excludingfeedstocks)byfueltype.Fuels(excludingfeedstocks)BiodieselHeatingvalueLHV(lowerheatingvalue)TotalfuelMWhconsumedbytheorganization90720MWhfuelconsumedfortheself-generationofelectricity0MWhfuelconsumedforself-generationofheat0


MWhfuelconsumedforself-cogenerationorself-trigeneration0

Fuels(excludingfeedstocks)JetKeroseneHeatingvalueLHV(lowerheatingvalue)TotalfuelMWhconsumedbytheorganization23830MWhfuelconsumedfortheself-generationofelectricity0MWhfuelconsumedforself-generationofheat0MWhfuelconsumedforself-cogenerationorself-trigeneration0

Fuels(excludingfeedstocks)LandfillGasHeatingvalueLHV(lowerheatingvalue)TotalfuelMWhconsumedbytheorganization5742MWhfuelconsumedfortheself-generationofelectricity5742MWhfuelconsumedforself-generationofheat0MWhfuelconsumedforself-cogenerationorself-trigeneration0

Fuels(excludingfeedstocks)MotorGasolineHeatingvalueLHV(lowerheatingvalue)


TotalfuelMWhconsumedbytheorganization45190MWhfuelconsumedfortheself-generationofelectricity0MWhfuelconsumedforself-generationofheat0MWhfuelconsumedforself-cogenerationorself-trigeneration0

Fuels(excludingfeedstocks)NaturalGasHeatingvalueLHV(lowerheatingvalue)TotalfuelMWhconsumedbytheorganization219298MWhfuelconsumedfortheself-generationofelectricity0MWhfuelconsumedforself-generationofheat219298MWhfuelconsumedforself-cogenerationorself-trigeneration0

Fuels(excludingfeedstocks)Other,pleasespecify(Diesel/gasoil)HeatingvalueLHV(lowerheatingvalue)TotalfuelMWhconsumedbytheorganization35541MWhfuelconsumedfortheself-generationofelectricity33387MWhfuelconsumedforself-generationofheat0MWhfuelconsumedforself-cogenerationorself-trigeneration


0

C8.2d

(C8.2d)ListtheaverageemissionfactorsofthefuelsreportedinC8.2c.BiodieselEmissionfactor9.46UnitkgCO2pergallonEmissionfactorsourceTheGreenhouseGasProtocol:ACorporateAccountingandReportingStandard(RevisedEdition)CommentBiogenicemissions.Emissionfactorfor100%biodiesel.Blends'(x%biodieselwithdiesel)emissionfactorsarecalculatedusingtheblendspecificemissionfactororthepercentcomposition.JetKeroseneEmissionfactor9.43UnitkgCO2pergallonEmissionfactorsourceTheGreenhouseGasProtocol:ACorporateAccountingandReportingStandard(RevisedEdition)CommentLandfillGasEmissionfactor2.48UnitkgCO2perm3EmissionfactorsourceTheGreenhouseGasProtocol:ACorporateAccountingandReportingStandard(RevisedEdition)


CommentBiogenicemissions.MotorGasolineEmissionfactor8.81UnitkgCO2pergallonEmissionfactorsourceTheGreenhouseGasProtocol:ACorporateAccountingandReportingStandard(RevisedEdition)CommentNaturalGasEmissionfactor59.2UnitkgCO2permillionBtuEmissionfactorsourceTheGreenhouseGasProtocol:ACorporateAccountingandReportingStandard(RevisedEdition)CommentOtherEmissionfactor10.13UnitkgCO2pergallonEmissionfactorsourceTheGreenhouseGasProtocol:ACorporateAccountingandReportingStandard(RevisedEdition)CommentDiesel/gasoilC8.2e


(C8.2e)Providedetailsontheelectricity,heat,steam,andcoolingyourorganizationhasgeneratedandconsumedinthereportingyear.

TotalGrossgeneration(MWh)

Generationthatisconsumedbytheorganization(MWh)

Grossgenerationfromrenewablesources(MWh)

Generationfromrenewablesourcesthatisconsumedbytheorganization(MWh)

Electricity 13907 13907 9553 9553

Heat Steam Cooling

C8.2f

(C8.2f)Providedetailsontheelectricity,heat,steamand/orcoolingamountsthatwereaccountedforatalow-carbonemissionfactorinthemarket-basedScope2figurereportedinC6.3.Basisforapplyingalow-carbonemissionfactorPowerPurchaseAgreement(PPA)withenergyattributecertificatesLow-carbontechnologytypeSolarPVWindMWhconsumedassociatedwithlow-carbonelectricity,heat,steamorcooling6533642Emissionfactor(inunitsofmetrictonsCO2eperMWh)0CommentDirectprocurementcontractwithagrid-connectedgeneratororPowerPurchaseAgreement(PPA),supportedbyenergyattributecertificates.Because'MWhconsumedassociatedwithlow-carbonelectricity'specifies'consumption',thiswascalculatedusingWRI'sGHGScope2ProtocolratherthanAlphabet/Google'saccountingmethodfor100%renewableenergy.In2017,wematched100%oftheelectricityconsumptionofouroperationswithrenewableenergypurchases.

C9.Additionalmetrics


C9.1

(C9.1)Provideanyadditionalclimate-relatedmetricsrelevanttoyourbusiness.DescriptionEnergyuseMetricvalue0.11MetricnumeratorNoncomputingoverheaddatacenterenergyuseMetricdenominator(intensitymetriconly)EnergyusedtopowerITequipment%changefrompreviousyear8DirectionofchangeDecreasedPleaseexplainGoogle’sdatacenterenergymetricistheratioofnoncomputingoverheadenergyusedividedbyITequipmentenergyuse.Thatratiowas0.12in2016,droppingto0.11in2017.That’san8%decrease,indicatingimprovedefficiency.Thismetriciscloselyrelatedtopowerusageeffectiveness(PUE),whichisastandarddatacenterindustryratio.PUEcomparestotaldatacenterenergy(IT+noncomputingoverheadlikecoolingandpowerdistribution)toITenergy.APUEof2.0meansthatforeverywattofITpower,anadditionalwattisconsumedtocoolanddistributepowertotheITequipment.APUEcloserto1.0meansnearlyalltheenergyisusedforcomputing.WemeasureandmonitorPUEvigilantlyandGoogle'sdatacenterstaffhaveaccesstoreal-timedata.Eachquarter,wepublishPUEdataonourpublicwebsite.Formoreinformation,see:https://www.google.com/about/datacenters/efficiency/internal/In2017,theaverageannualPUEforourglobalfleetofdatacenterswas1.11,comparedwiththeindustryaverageof1.58—meaningthatourdatacentersuseaboutfivetimeslessoverheadenergy.

C10.Verification

C10.1

(C10.1)Indicatetheverification/assurancestatusthatappliestoyourreportedemissions.


Verification/assurancestatus

Scope1 Third-partyverificationorassuranceprocessinplace

Scope2(location-basedormarket-based) Third-partyverificationorassuranceprocessinplace

Scope3 Third-partyverificationorassuranceprocessinplace

C10.1a

(C10.1a)Providefurtherdetailsoftheverification/assuranceundertakenforyourScope1and/orScope2emissionsandattachtherelevantstatements.ScopeScope1VerificationorassurancecycleinplaceAnnualprocessStatusinthecurrentreportingyearCompleteTypeofverificationorassuranceLimitedassuranceAttachthestatementCDPVerificationStatementAlphabetCY2017v.1.pdfPage/sectionreferencePages1to3RelevantstandardISO14064-3Proportionofreportedemissionsverified(%)100

ScopeScope2location-basedVerificationorassurancecycleinplaceAnnualprocessStatusinthecurrentreportingyearComplete


TypeofverificationorassuranceLimitedassuranceAttachthestatementCDPVerificationStatementAlphabetCY2017v.1.pdfPage/sectionreferencePages1to3RelevantstandardISO14064-3Proportionofreportedemissionsverified(%)100

ScopeScope2market-basedVerificationorassurancecycleinplaceAnnualprocessStatusinthecurrentreportingyearCompleteTypeofverificationorassuranceLimitedassuranceAttachthestatementCDPVerificationStatementAlphabetCY2017v.1.pdfPage/sectionreferencePages1to3RelevantstandardISO14064-3Proportionofreportedemissionsverified(%)100

C10.1b

(C10.1b)Providefurtherdetailsoftheverification/assuranceundertakenforyourScope3emissionsandattachtherelevantstatements.Scope


Scope3-atleastoneapplicablecategoryVerificationorassurancecycleinplaceAnnualprocessStatusinthecurrentreportingyearCompleteAttachthestatementCDPVerificationStatementAlphabetCY2017v.1.pdfPage/sectionreferencePages1to3RelevantstandardISO14064-3

C10.2

(C10.2)Doyouverifyanyclimate-relatedinformationreportedinyourCDPdisclosureotherthantheemissionsfiguresreportedinC6.1,C6.3,andC6.5?YesC10.2a

(C10.2a)WhichdatapointswithinyourCDPdisclosurehavebeenverified,andwhichverificationstandardswereused?Disclosuremoduleverificationrelatesto Dataverified Verificationstandard Pleaseexplain

C6.Emissionsdata

Productfootprintverification ISO14040:2006andISO14044:2006.

In2017,weproducedproductenvironmentalreportsfor6ofourflagshipproducts(DaydreamView,GoogleHome,GooglePixel2,GooglePixel2XL,GoogleHomeMini,andGooglePixelbook).Theseincludedcarbonfootprintsbasedonproductlife-cycleassessment(LCA)studies,whichdetailtheenvironmentalperformanceofeachproductoveritsfulllifecycle,fromdesignandmanufacturingthroughusageandrecycling.Theproductenvironmentalreportscanbefoundathttps://store.google.com/us/magazine/sustainability.Thelife-cycleassessment(LCA)reportsunderwentandsuccessfullypassedcriticalreviewbyanexternalindividual


Disclosuremoduleverificationrelatesto Dataverified Verificationstandard Pleaseexplain

expert.Thecriticalreviewcheckedthat:-MethodsusedtocarryouttheLCAwereconsistentwithstandardsISO14040and14044;-MethodsusedtocarryouttheLCAwerescientificallyandtechnicallyvalid;-Datausedwereappropriateandreasonableinrelationtothegoalofthestudy;-Interpretationsreflectedthelimitationsidentifiedandthegoalofthestudy;-Studydocumentationwastransparentandconsistent.CriticalreviewstatementsareincludedintheappendicesofeachLCAreportandcanbemadeavailableuponrequest.

C8.EnergyRenewableenergyproducts

Ourcarbonfootprintisexternallyverified.Ourverifierdoesnotverifytherenewableenergycredits(RECs)andGOOs(GuaranteesofOrigin)thatweusetowardsourmarket-basedScope2emissions,theyonlyverifyhowweapplythemagainstourScope2emissions.

Ourcarbonfootprintisexternallyverified.Ourverifierdoesnotverifytherenewableenergycredits(RECs)andGOOs(GuaranteesofOrigin)thatweusetowardsourmarket-basedScope2emissions,theyonlyverifyhowweapplythemagainstourScope2emissions.

C8.Energy

Other,pleasespecify(Totalelectricityconsumption)

TheGreenhouseGasProtocol:ACorporateAccountingandReportingStandard(RevisedEdition)

Weverifyouremissionsdata,emissionsbreakdown,andenergy.TotalelectricityconsumptionisverifiedaspartofourGHGinventoryverification.

C11.Carbonpricing

C11.1

(C11.1)Areanyofyouroperationsoractivitiesregulatedbyacarbonpricingsystem(i.e.ETS,Cap&TradeorCarbonTax)?YesC11.1a

(C11.1a)Selectthecarbonpricingregulation(s)whichimpactsyouroperations.


EUETSC11.1b

(C11.1b)Completethefollowingtableforeachoftheemissionstradingsystemsinwhichyouparticipate.EUETS%ofScope1emissionscoveredbytheETS1.37PeriodstartdateJanuary12017PeriodenddateDecember312017Allowancesallocated915Allowancespurchased915VerifiedemissionsinmetrictonsCO2e915DetailsofownershipFacilitiesweownandoperateCommentC11.1d

(C11.1d)Whatisyourstrategyforcomplyingwiththesystemsinwhichyouparticipateoranticipateparticipating?ThescopeoftherevisedEUETSlegislationscoveredsmallemittersand,asaresult,ourEUdatacenterswererequiredtoapplyforETSPermits.TheEUETSdirectiverequiresoperatorsofinstallationswhichareincludedinthescopetoholdavalidGHGemissionmonitoringplanissuedbytherelevantCompetentAuthority,tomonitorandreporttheiremissions,tohavethereportsverifiedbyanindependentandaccreditedverifier,andtopurchaseandsurrenderthe


equivalentnumberofallowancesonanannualbasisthroughapprovedoperatorsholdingaccountsontheUnionRegistry.OurstrategyforcomplianceistocontinuetofollowthesedirectivesoftheEUETS.C11.2

(C11.2)Hasyourorganizationoriginatedorpurchasedanyproject-basedcarboncreditswithinthereportingperiod?YesC11.2a

(C11.2a)Providedetailsoftheproject-basedcarboncreditsoriginatedorpurchasedbyyourorganizationinthereportingperiod.CreditoriginationorcreditpurchaseCreditpurchaseProjecttypeLandfillgasProjectidentificationBerkeleyCountyLandfillGasProject(CAR574)VerifiedtowhichstandardCAR(TheClimateActionReserve)Numberofcredits(metrictonnesCO2e)12096Numberofcredits(metrictonnesCO2e):Riskadjustedvolume12096CreditscancelledYesPurpose,e.g.complianceVoluntaryOffsetting

C11.3


(C11.3)Doesyourorganizationuseaninternalpriceoncarbon?YesC11.3a

(C11.3a)Providedetailsofhowyourorganizationusesaninternalpriceoncarbon.ObjectiveforimplementinganinternalcarbonpriceOther,pleasespecify(Riskassessment)GHGScopeScope2ApplicationWeusecarbonpricesaspartofourriskassessmentmodel,tosupportstrategicdecision-makingrelatedtofuturecapitalinvestments.Forexample,theriskassessmentatindividualdatacenterfacilitiesalsoincludesusingashadowpriceforcarbontoestimateexpectedfutureenergycosts.Actualprice(s)used(Currency/metricton)Varianceofprice(s)usedWedonotdisclosetheexactcarbonpriceweuse,howwedetermineit,oritsvarianceasweconsiderthistobecompetitiveinformation.TypeofinternalcarbonpriceShadowpriceImpact&implicationGooglefacestheriskofincreasedcostsofenergyifapriceoncarbonisappliedthroughlegislationsuchascapandtrade(orothermechanismssuchastaxation).Totheextentthatthispriceispassedontousfromaregulatedentity,thecostofrunningouroperationswillincrease.However,wealreadyoperatesomeofthemostefficientdatacentersintheworld,procurerenewablepowerforourdatacenters,andgenerateonsiterenewableenergyatseveralofouroffices,allofwhichreduceourexposuretothisrisk.Inaddition,wealreadyincludeashadowpriceforcarboninourdatacentersitinganalysissowetakethisriskintoaccountevenbeforewebuildadatacenter.Finally,wearecarbon-neutralthroughthepurchaseofhigh-qualitycarbonoffsets,soineffect,wealreadyincludeacarbonpriceinouroperations.Ifacarbonpriceofe.g.$14/metrictonnewereestablishedthroughregulation(priceofcarbon/tonneatAB32AuctioninMay2014),thiscouldincreaseourcostsby~$8M[=(2017Scope1+market-basedScope2)*$14],assumingthesecostswerepassedthroughtoelectricityconsumersandwewerenotfurtherabletoreduceourcarbonfootprint.The


financialimpactwouldlikelybelessaswealreadyvoluntarilypurchasecarbonoffsets.Notethatthisisahypotheticalexampleandnotouractualinternalcarbonprice.

C12.Engagement

C12.1

(C12.1)Doyouengagewithyourvaluechainonclimate-relatedissues?Yes,oursuppliersYes,ourcustomersYes,otherpartnersinthevaluechainC12.1a

(C12.1a)Providedetailsofyourclimate-relatedsupplierengagementstrategy.TypeofengagementEngagement&incentivization(changingsupplierbehavior)DetailsofengagementRunanengagementcampaigntoeducatesuppliersaboutclimatechangeClimatechangeperformanceisfeaturedinsupplierawardsscheme%ofsuppliersbynumber86%totalprocurementspend(directandindirect)95%Scope3emissionsasreportedinC6.590RationaleforthecoverageofyourengagementIn2017,ourResponsibleSupplyChainprogramwasdirectlyengagedwith400+activesupplierssupportinghardwaremanufacturingandrelatedservices.Ofthose,352(86%),havesignedourSupplierCodeofConductwhicharticulatesouroverallrequirementsforenergyandemissions.AllsuppliersarerequiredtosignourSupplierCodeofConductandweareworkingtocompletetheremainingsignaturesasweselectandonboardnewsuppliers.Spendiscalculatedbasedonourpurchaseorderswithsuppliersprovidingmanufacturingservicesorproducts.In2017,ouractivehardware


supplierswhosignedourSupplierCodeofConductcovered95%ofourtotalspendand90%ofourhardwaresuppliermanufacturingemissions.Google'sSupplierCodeofConductaddressesresourceefficiencyandotherenvironmentalindicators.ThisSupplierCodeofConductisincludedinourcontractsandformsthebasisofoursuppliersustainabilityprofilesurveyandoursupplieraudits.OurSupplierCodeofConductcanbefoundhere:http://www.google.com/about/company/responsible-manufacturing.htmlWeworkwithoursupplierstounderstandtheirenvironmentalimpactsthroughsurveys,onsiteauditsanddirectengagementwithoursuppliers.WeengagewithoursupplierstoidentifyGHGsourcestoprioritizeforreductionactionsanddeveloptheircapacitytoreportandminimizetheirgreenhousegasemissions.Manyofoursuppliershaverobustprogramstomanagetheirgreenhousegasemissions.Wehaveintegratedsustainabilitycriteriaintooursuppliersourcingandsupplierperformancemanagementprocesses.Thesesustainabilitycriteriaincludeassessmentsaboutasupplier'spracticestoreport,manageandreducetheiremissions(andotherenvironmentalindicators).Wegatherdatadirectlyfromourmoststrategicsuppliersontheirenvironmentalimpacts.Thisdataisusedtoprioritizebysupplier,bycommodity,andbyregion.WehaveexpandedthenumberanddetailoftheLCAsweconductonourproducts,anduseotherinputssuchasprimarydatatoverifydata,refineallocationsandcontinuallyimproveouranalysis.Wearecontinuingtoanalyzeandrefineourestimatesofsupplychaingreenhousegasemissions,whilealsorequestingthatsuppliersreporttheirtargetsandemissionstrackingtousinoursuppliersustainabilityprofilesurvey.Impactofengagement,includingmeasuresofsuccessOfour400+activesupplierssupportinghardwaremanufacturingandrelatedservices,45suppliersrepresenting80%ofourspendprovidedenvironmentaldatatoAlphabetin2017.Ofour174auditedsupplierfactoriesin2017,87%trackedtheir(energy,water,waste)consumptionandhadsetenvironmentalreductiontargets.Weusethedatawegetfromsupplierstohelpusvalidatethegreenhousegasemissionsdataobtainedthroughourlifecycleassessmentprocessandtohelpsetgoalsforoursuppliersustainabilityprogram.Comment

C12.1b

(C12.1b)Givedetailsofyourclimate-relatedengagementstrategywithyourcustomers.TypeofengagementEducation/informationsharingDetailsofengagementRunanengagementcampaigntoeducatecustomersabouttheclimatechangeimpactsof(using)yourproducts,goods,and/orservicesSizeofengagement


30%Scope3emissionsasreportedinC6.5PleaseexplaintherationaleforselectingthisgroupofcustomersandscopeofengagementAlphabetreportstoCDP’sSupplyChainprogram,tomakeourcarbonfootprintdataavailabletoourcustomers.14customersrequestedthisdatafromAlphabetforFY2017.Webelievethatenvironmentalimpactshouldbeanimportantconsideration—alongsidefactorssuchasprice,security,opennessandreliability—whenitcomestodatastorage,processinganddevelopment.Therefore,wehaveproducedandpromotedcontenttoourCloudcustomersaboutoursustainabilityandclimatechangestrategyandperformance.Forexample,welaunchedanewmicrositetohelpbusinessesunderstandtheenvironmentalimpactoftheiroperationsandhowswitchingtoGoogleCloudcanhelpreduceit(seehttps://cloud.google.com/renewable-energy/).Wepublishedablogpostaboutwhybuildingonanenvironmentallyresponsiblecloudmatters(seehttps://www.blog.google/products/google-cloud/why-building-environmentally-responsible-cloud-matters/),whichwaspromotedonTwitterbytheGoogleCloudPlatformaccount.WeincludedinformationonourcarbonfootprintintheGoogleCloudnewsletter,andprovidedasubsetofourcustomerswithamodulefortheircarbonemissionsintheirMonthlyOperationsReport.WealsoincludeinformationonourclimatechangestrategyandperformanceateventssuchasGoogleCloudNext,ourannualeventforcurrentandprospectiveGoogleCloudcustomers.WehostedaCloudOnAirwebinaraboutwhybuildingonanenvironmentallyresponsibleCloudmatters.Wehavealsotrainedoursalesteamtocommunicatethesekeymessagestoprospectiveandexistingcustomers.Impactofengagement,includingmeasuresofsuccessOurmeasuresofsuccessinclude:uniqueviewsforourGoogleCloudenvironmentmicrosite(https://cloud.google.com/environment/)andblogs,messagepull-throughbymediaandpress,socialmediaimpressionsfromtweetsrelatedtothiscontent,attendeesatclimate-focusedCloud-on-Airwebinars,andthenumberofprospectiveandnewcustomersaskingaboutormentioningtheenvironmentalperformanceofGoogleCloud.ThisengagementhasimpactedthedecisionofcustomerstouseGoogleCloudproducts,includingEtsyandLush.Forexample,wepublishedablogpostinwhichEtsy'sCTOtalksabouthowGoogle'scommitmenttosustainabilityfactoredintotheirdecisiontouseGoogleCloudPlatform(seehttps://www.blog.google/products/google-cloud/engineered-renewal-google-cloud-etsy-and-sustainability/).

C12.1c

(C12.1c)Givedetailsofyourclimate-relatedengagementstrategywithotherpartnersinthevaluechain.Inadditiontoengagementwithsuppliersandcustomers,wealsoengagewithotherpartnersonclimate-relatedissuesinvariouscapacities.


Weengagewithorganizationsthatareperformingresearchanddisseminatingpublicworkrelatedtoclimatechangeandenergy.TheGoogleEarthOutreachandEarthEngineteamshavehelpedorganizationsaccelerateclimateresearch.GooglecreatedtheEarthOutreachprogram,whichworksdirectlywithnonprofitsandpublicbenefitgroupstohelpthemgetthemappingresourcesneededtocreateknowledgeabouttheenvironmentandcommunicateiteffectivelytodecisionmakers.Since2011,GoogleEarthOutreachhaspartneredwiththeEnvironmentalDefenseFund(EDF)tomeasureandmapmethaneleaksundercitystreets.We’vedeployedmethaneanalyzersmountedonGoogleStreetViewcarstobuildinsightsthathavehelpedcommunitygroups,utilities,andregulatorsgetabetterunderstandingofmethaneleaksandidentifyopportunitiesforimprovements.Forexample,basedonthisdata,NewJersey’sPSE&Gapprovedaplantoreplaceupto510milesofoldpipe.Formoredetails,see:

• https://www.edf.org/methanemaps• https://www.edf.org/climate/methanemaps/pseg-collaboration?_ga=2.268426062.1314427762.1535331945-

803036495.1515518828• http://blogs.edf.org/energyexchange/2016/12/13/managing-methane-new-jerseys-largest-utility-using-better-data-

for-better-decisions/• http://googleforwork.blogspot.com/2016/04/Environmental-Defense-Fund-finds-methane-leaks-and-helps-slow-

climate-change-using-Google-Maps-APIs.htmlWe’vealsomappedotherairpollutantswithourpartners,includingcarbondioxide,particulatematter,ozone,nitrogendioxide,nitrousoxide,andmore.In2017,GoogleEarthOutreachworkedwiththeEnvironmentalDefenseFund(EDF)andAclimatoreleaseheatmapswithhyper-localairqualityinformationforthreeregionsinCaliforniathatcontainedhundredsofmillionsofambientairqualitydatapointsmeasuredbytheGoogleStreetViewcarsequippedwithairqualitysensors.Over3peer-reviewedsciencearticleshavebeenpublishedaroundthiswork.WiththeWorldResourcesInstitute(WRI),theGlobalEnergyObservatory,KTHRoyalInstituteofTechnologyinStockholm,andtheUniversityofGroningen,wereleasedaglobaldatabaseofpowerplants(seehttp://globalpowerwatch.organdhttp://datasets.wri.org/dataset/globalpowerplantdatabase).Thisdatabasestandardizespowersectorinformationandmakesiteasilyaccessibletoeveryone,helpingtobringtransparencyandaccountabilitytotheglobalpowersectortoacceleratetheshifttoacleanenergyfuture.Formoreinformation,seehttps://www.blog.google/products/earth/new-public-energy-tool-reduce-emissions/


Google’sproductshelpdrivecarbonmitigationeffortsandinformclimatescience.OurGoogleEarthEnginegeospatialanalysisplatformmakesmorethan40yearsofsatelliteimageryavailableonlinesoscientistsandresearcherscananalyzereal-timechangestotheEarth’ssurface.ThroughtheClimateDataInitiative,weprovidedonepetabyteofcloudstoragefordataandclimate/weathermodels,plus50millionhoursofhigh-performancecloudcomputing.Wecommittocontinuingtodevelopproductsandplatformsthatcanhelpreduceemissionsandbringthepowerofcloudcomputingtoclimatescience.Additionally,Google’stoolshelpfurtherthedisseminationofclimateinformationthroughtheGoogleforNonprofitsprogram.ThisprogramofferseligiblenonprofitorganizationsaccesstoGoogletoolslikeGmail,GoogleCalendar,GoogleDrive,GoogleAdGrants,YouTubeforNonprofitsandmore--allatnocharge.ThiseffortaimstosupportthesocialimpactofnonprofitsthrougheasyaccesstoGoogle'shighlyefficientproductsandservices.NonprofitscanuseGoogle'sfreetoolstofindnewdonorsandvolunteers,workefficientlyandgetsupporterstotakeactionontopicslikeclimatechange.Theseeffortsalignwithourclimatechangestrategybecausemanyofthenonprofits,suchastheNaturalResourcesDefenseCouncil(NRDC),engageinresearchanddisseminatepublicworkrelatedtoclimatechange.Forexample,NRDCusesGSuitetocommunicateeffectivelyandAdGrantstodrivemoretraffictotheirwebsite.TheyalsouseGoogleMapsandGoogleEarthtomakevividtheirenvironmentalconcernsandtosharethedatathey'vecollectedpubliclyinavisual,understandableway.Formoreinformation,see:https://www.google.com/nonprofitsandhttps://www.google.com/nonprofits/casestudies/defense-council.html.Lastly,Googleisanactivememberofanumberofcoalitionsworkingtoaddressclimatechangeandprovidegreateraccesstorenewables.Thisincludestheorganizationslistedinourresponsetoquestion12.3caswellasmanyothers.C12.3

(C12.3)Doyouengageinactivitiesthatcouldeitherdirectlyorindirectlyinfluencepublicpolicyonclimate-relatedissuesthroughanyofthefollowing?DirectengagementwithpolicymakersTradeassociationsOther


C12.3a

(C12.3a)Onwhatissueshaveyoubeenengagingdirectlywithpolicymakers?Focusoflegislation

Corporateposition Detailsofengagement Proposedlegislativesolution

Cleanenergygeneration Support

Googlehasservedasacatalystforpolicychangethroughtargetedadvocacyattheinternational,nationalandstatelevels.MembersofGoogle'senergyandpublicpolicyteamshaveengageddirectlywithpolicymakersfromtheU.S.(includingtheWhiteHouse,theU.S.CongressandGovernors)andothercountriestocallforpoliciesthatpromoterenewableenergyand/orreducecarbonemissions.In2017,thisincluded:EuropeanUnionrenewablespolicy:-In2017,theEuropeanParliamentandEuropeanCouncilbegannegotiationsonlegislativeproposalsofkeyimportancetothegrowthoftherenewableenergysector.TohelpensureafavorableoutcomeforrenewableenergyinEurope,GoogleorganizedandsignedmultipleletterstotheEuropeanParliamentandEuropeanCouncilthatcalledforambitiousrenewableenergytargetsinthenewdirectivesandurgedEUpolicymakerstoremovebarrierstocorporaterenewableenergyPPAs.Wealsohostedhigh-levelforumswithkeyofficialstoraisetheprofileofrenewableenergyinEuropeandshowoursupportforambitiousrenewableenergypolicies,includingaFebruary2017eventatourBrusselswithEuropeanCommissionVicePresidentfortheEnergyMarošŠefčovičandMEPKathleenVanBrempt.InOctober,GooglesponsoredtheinauguralRe-SourceeventinBrussels,thelargestgatheringofgovernmentofficialsandbusinessleadersdedicatedtoacceleratingcorporatepurchasingofrenewableenergyinEurope.Taiwanenergypolicy:-Throughout2017,Googlemetfrequentlywith

Morelocal,regional,nationalandinternationalpoliciestoreducedependenceoncarbonintensivepowerandsupportcleanenergydeployment.Detailsofengagementcontinued:U.S.federalclimatepolicy:-WehavecontinuedtobevocalproponentsoftheEPACleanPowerPlan(CPP).InMarch2017,inresponsetoPresidentTrump’sexecutiveorderdirectingarepealoftheCleanPowerPlanwejoinedwithAmazon,Apple,andMicrosofttoissueastatementopposingtherepealandreiteratingoursupportforfederalpoliciesthatbringnewrenewableenergyontothegrid(see:https://blogs.microsoft.com/green/2017/03/30/joint-tech-amici-statement-on-clean-power-plan/)-SeekingtoencouragetheUnitedStatestoremainintheParisAgreement,wesentajointlettertoPresidentTrumpinApril2017(see:https://c2es.org/site/assets/uploads/2017/04/business-letter-white-house-paris-agreement-final-04-26-2017-1.pdf),andwejoinedfullpageadvertisementsintheNewYorkTimesandWallStreetJournalonMay8thandJune1st2017addressingourconcernstoPresidentTrump(see:https://www.c2es.org/content/business-support-for-the-paris-agreement/),-WhenPresidentTrumpannouncedhisintenttowithdrawtheUnitedStatesfromtheParisAgreement,ourCEOSundarPichaiexpressedhisoppositiontothedecision(see:https://www.theverge.com/2017/6/1/15726980/silicon-valley-google-microsoft-trump-paris-climate-deal)-Wesupportedtradegroupsofwhichweareamember,namelytheAmericanCouncilonRenewableEnergy(ACORE)andtheAdvancedEnergyBuyersGroup(AEBG)inopposingtheimpositionofimporttariffsonsolarcellsandpanelsthatwouldthreatentoslowthegrowthofrenewableenergyinstallationsandjobsintheUnitedStates.U.S.stateclimateandenergypolicy:WehaveengagedU.S.statestopreserveandpromoterenewableenergypoliciesandestablishfirst-of-their-kindstateutilityrenewableenergypurchaseprograms.Forexample:-GeorgiaPowerIRP:InAugust2017,asaresultofeffortsbyGoogleandothers,theGeorgiaPublicServiceCommissionapprovedGeorgiaPower’sCommercial&IndustrialRenewableEnergyDevelopmentProgram.ParticipatingcustomersofGeorgiaPowerwereabletopurchaseenergyandRECsfrom177MWofnewsolarprojectsinGeorgia.


Focusoflegislation

Corporateposition Detailsofengagement Proposedlegislativesolution

TaiwanesestakeholdersintheMinistryofEconomicAffairs,BureauofEnergy,andBureauofStandards,Metrology,andInspectiontoadvocateforeffectiveaccesstorenewableenergyforend-users.Followingextensiveconsiderationin2015and2016,Taiwan’slegislaturepassedanamendmenttotheirElectricityActthatwillallowsalesofrenewableenergytoend-users.In2017,GooglemetfrequentlywithTaiwaneseofficialsandstakeholderstosupporttheirdesignoftheimplementingregulationsandcontractsthatwillenablerenewableenergysalestoendusers.

C12.3b

(C12.3b)Areyouontheboardofanytradeassociationsordoyouprovidefundingbeyondmembership?YesC12.3c

(C12.3c)Enterthedetailsofthosetradeassociationsthatarelikelytotakeapositiononclimatechangelegislation.TradeassociationU.S.PartnershipforRenewableEnergyFinance(FoundingMember)(USPREF)Isyourpositiononclimatechangeconsistentwiththeirs?ConsistentPleaseexplainthetradeassociation’spositionUSPREFisacoalitionofseniorlevelfinancierswhoinvestinallsectorsoftheenergyindustry,includingrenewableenergy.PREFmembersmeetwithpolicymakerstoprovidetheirperspectivesonhowrenewableenergyfinancepoliciesaffectthemarket,andhowproposedpoliciescouldaffectthemarket.USPREFisnotalobbyingorganizationoran


advisorycommitteetogovernment,ratheritisaneducationalprogramthatprovidesexpertinputonhowtherenewableenergyfinancemarketworks.FormoreinformationaboutUSPREF,seehttp://www.uspref.org/Howhaveyou,orareyouattemptingto,influencetheposition?GoogleisafoundingmemberofUSPREF.WearenotontheBoardofthistradeassociationanddonotprovidefundingbeyondmembership.However,wemaintainregularengagementwithtopleadershipofthekeytradeassociationsinwhichwearemembers.

TradeassociationAmericanCouncilonRenewableEnergy(ACORE)Isyourpositiononclimatechangeconsistentwiththeirs?ConsistentPleaseexplainthetradeassociation’spositionACORE,a501(c)(3)non-profitmembershiporganization,isdedicatedtobuildingamoresecureandprosperousAmericawithclean,renewableenergy.ACOREprovidesacommoneducationalplatformforawiderangeofinterestsintherenewableenergycommunity,focusingontechnology,financeandpolicy.Itconvenesthoughtleadershipforumsandcreatesenergyindustrypartnershipstocommunicatetheeconomic,securityandenvironmentalbenefitsofrenewableenergy.FormoreinformationaboutACORE,seehttp://www.acore.org/Howhaveyou,orareyouattemptingto,influencetheposition?WearenotontheBoardofthistradeassociationanddonotprovidefundingbeyondmembership.However,wemaintainregularengagementwithtopleadershipofthekeytradeassociationsinwhichwearemembers.

TradeassociationWRI/WWFCorporateRenewableEnergyBuyer'sPrinciplesIsyourpositiononclimatechangeconsistentwiththeirs?ConsistentPleaseexplainthetradeassociation’spositionTheBuyers’Principlesrepresentlargecustomers’renewableenergyneedsandhelpthemstreamlinesolutionsforbuyingcost-effectiverenewableenergy.WithfacilitationbyWWFandWRI,agroupoflargeenergybuyersdevelopedtheBuyers’PrinciplestospurprogressonrenewableenergyandtoaddtheirperspectivetothefutureoftheU.S.energyandelectricitysystem.FormoreinformationabouttheBuyer'sPrinciples,seehttp://buyersprinciples.org/Howhaveyou,orareyouattemptingto,influencetheposition?WearenotontheBoardofthistradeassociationanddonotprovidefundingbeyondmembership.However,wemaintainregularengagementwithtopleadershipofthekeytradeassociationsinwhichwearemembers.


TradeassociationRE100Isyourpositiononclimatechangeconsistentwiththeirs?ConsistentPleaseexplainthetradeassociation’spositionConvenedbyTheClimateGroupinpartnershipwithCDP,RE100isacollaborative,globalinitiativeofinfluentialbusinessescommittedto100%renewableelectricity,workingtomassivelyincreasedemandfor—anddeliveryof—renewableenergy.FormoreinformationaboutRE100,seehttp://there100.org/Howhaveyou,orareyouattemptingto,influencetheposition?GooglejoinedRE100inDecember2015(see:http://www.theclimategroup.org/what-we-do/news-and-blogs/google-joins-re100-with-target-to-triple-renewable-energy-by-2025/).WearenotontheBoardofthistradeassociationanddonotprovidefundingbeyondmembership.However,wemaintainregularengagementwithtopleadershipofthekeytradeassociationsinwhichwearemembers.

TradeassociationNorthCarolinaSustainableEnergyAssociation(NCSEA)Isyourpositiononclimatechangeconsistentwiththeirs?ConsistentPleaseexplainthetradeassociation’spositionNCSEAdrivespublicpolicy&marketdevelopmenttocreatecleanenergyjobs,businessopportunities,andaffordableenergytobenefitNorthCarolina.FormoreinformationaboutNCSEA,seehttp://www.energync.org/Howhaveyou,orareyouattemptingto,influencetheposition?WearenotontheBoardofthistradeassociationanddonotprovidefundingbeyondmembership.However,wemaintainregularengagementwithtopleadershipofthekeytradeassociationsinwhichwearemembers.

TradeassociationSouthCarolinaCleanEnergyBusinessAlliance(SCCEBA)Isyourpositiononclimatechangeconsistentwiththeirs?ConsistentPleaseexplainthetradeassociation’spositionSCCEBApromotesthesuccessofthecleanenergyindustryinSouthCarolina,representingtheneedsandinterestsofthisgrowingindustrythroughpolicydevelopment,educationaloutreachtodecisionmakersandstrategiceconomic


development.SCEEBAwasinstrumentalingettingenactmentofS.1189in2014(athirdpartysolarbill).FormoreinformationaboutSCCEBA,seehttp://www.scceba.org/Howhaveyou,orareyouattemptingto,influencetheposition?WearenotontheBoardofthistradeassociationanddonotprovidefundingbeyondmembership.However,wemaintainregularengagementwithtopleadershipofthekeytradeassociationsinwhichwearemembers.

TradeassociationTheWindCoalitionIsyourpositiononclimatechangeconsistentwiththeirs?ConsistentPleaseexplainthetradeassociation’spositionTheWindCoalitionistheindustrytradeassociationcreatedtopromotethedevelopmentofwindenergyasaclean,reliable,affordable,andinfinitesourceofpower.TheWindCoalitionisthewindenergyindustry’svoicewithintheElectricReliabilityCouncilofTexas(ERCOT)andSouthwestPowerPool(SPP)systems,whichincludeTexas,Kansas,Oklahoma,Nebraska,Arkansas,Missouri,NewMexico,andLouisiana.FormoreinformationabouttheWindCoalition,seehttp://windcoalition.org/Howhaveyou,orareyouattemptingto,influencetheposition?WearenotontheBoardofthistradeassociationanddonotprovidefundingbeyondmembership.However,wemaintainregularengagementwithtopleadershipofthekeytradeassociationsinwhichwearemembers.

TradeassociationAdvancedEnergyBuyersGroupIsyourpositiononclimatechangeconsistentwiththeirs?ConsistentPleaseexplainthetradeassociation’spositionTheAdvancedEnergyBuyersGroup(AEBuyersGroup)isacoalitionofleadingadvancedenergypurchaserswhohavecometogethertoengageontheenergypolicyissuesthatwillhelpthemachievetheirambitiouscleanenergytargets.Howhaveyou,orareyouattemptingto,influencetheposition?Googlejoinedthisgroupin2017,whenitwasformed.WearenotontheBoardofthistradeassociationanddonotprovidefundingbeyondmembership.However,wemaintainregularengagementwithtopleadershipofthekeytradeassociationsinwhichwearemembers.

C12.3e


(C12.3e)Providedetailsoftheotherengagementactivitiesthatyouundertake.Inadditiontoengagementwithpolicy-makersandtradeassociations,wealsoengagewithorganizationsthatareperformingresearchanddisseminatingpublicworkrelatedtoclimatechangeandenergy.GooglewasborninStanford'sComputerSciencedepartment,sostrongrelationshipswithuniversitiesandresearchinstitutionsareinourDNA.Tocultivatethesecollaborations,weadministeravarietyofprogramsthatprovideresourcesandsupporttotheacademicandexternalresearchcommunities.Formoreinformation,seehttps://ai.google/research/outreach.TheGoogleEarthOutreachandEarthEngineteamshavehelpedorganizationsaccelerateclimateresearch.GooglecreatedtheEarthOutreachprogram,whichworksdirectlywithnonprofitsandpublicbenefitgroupstohelpthemgetthemappingresourcesneededtocreateknowledgeabouttheenvironmentandcommunicateiteffectivelytodecisionmakers.GoogleEarthEngineResearchAwards,structuredasunrestrictedgiftstouniversitiestosupporttheworkofworld-classfull-timefacultymembersattopuniversitiesaroundtheworld,supportedcutting-edgegeospatialdataanalysisand,insomecasesalsoproducedanddisseminatedpublicworkonclimatechange.Therehavebeenover1,800+publicationstodate.Googleemployeeswerealsoco-authorsonanumberofpublicresearchpapers,includingonethatquantifiesglobalforestchangeandrecognizestheimportanceofforestecosystemservicesusingGoogleEarthEngine.Asoftheendof2017,thispaperhasreceivedover2500citations.(see:http://www.sciencemag.org/content/342/6160/850)Wealsosupportorganizationsworkingonclimatechangeissues.Forexample,weworkcloselywiththeWorldResourcesInstitutetobringtechnologyandexpertisetomanyoftheirclimateandenergyprograms,includingdecarbonizationscenariosandenergyplanningtools.GoogleisalsoaglobalpartneroftheEllenMacArthurFoundation,whichisworkingtoacceleratethetransitiontoacirculareconomy.Additionally,Google’stoolshelpfurtherthedisseminationofclimateinformationthroughtheGoogleforNonprofitsprogram.ThisprogramofferseligiblenonprofitorganizationsaccesstoGoogletoolslikeGmail,GoogleCalendar,GoogleDrive,GoogleAdGrants,YouTubeforNonprofitsandmore--allatnocharge.ThiseffortaimstosupportthesocialimpactofnonprofitsthrougheasyaccesstoGoogle'shighlyefficientproductsandservices.NonprofitscanuseGoogle's


freetoolstofindnewdonorsandvolunteers,workefficientlyandgetsupporterstotakeactionontopicslikeclimatechange.Theseeffortsalignwithourclimatechangestrategybecausemanyofthenonprofits,suchastheNaturalResourcesDefenseCouncil(NRDC),engageinresearchanddisseminatepublicworkrelatedtoclimatechange.Forexample,NRDCusesGSuitetocommunicateeffectivelyandAdGrantstodrivemoretraffictotheirwebsite.TheyalsouseGoogleMapsandGoogleEarthtomakevividtheirenvironmentalconcernsandtosharethedatathey'vecollectedpubliclyinavisual,understandableway.Formoreinformation,see:https://www.google.com/nonprofitsandhttps://www.google.com/nonprofits/casestudies/defense-council.html.Lastly,Googleisanactivememberofanumberofcoalitionsworkingtoaddressclimatechangeandprovidegreateraccesstorenewables.Thisincludestheorganizationslistedinourresponsetoquestion12.3caswellasmanyothers.C12.3f

(C12.3f)Whatprocessesdoyouhaveinplacetoensurethatallofyourdirectandindirectactivitiesthatinfluencepolicyareconsistentwithyouroverallclimatechangestrategy?Allactivitiesrelatedtoengagementonclimatepolicyarecoordinatedandmanagedbydesignatedmembersofouroperationsteamwhohandlepolicy,ourpublicpolicyteam,andmembersofourcommunicationsteam.Theseemployeescoordinatethedraftingandreviewofallpublic-facingcontentrelatedtoouroverallenergy,sustainabilityandclimatechangestrategy.Materialistrackedcentrallyforreferenceandusebyotheremployeesandtofurtherensureconsistency.TheseemployeesultimatelyreporttoourChiefLegalOfficer,whooverseesourpolicyandcommunicationsorganizations.Sustainabilityteamsthroughouttheorganizationusethisteamforreviewtoensureconsistencywithouroverallclimatechangestrategy.Anopt-inorganization-widesustainabilitye-maillistalsoexiststoupdatethoseinterestedonhappeningswithouroverallclimatechangestrategyandactionstakentosupportit.C12.4

(C12.4)Haveyoupublishedinformationaboutyourorganization’sresponsetoclimatechangeandGHGemissionsperformanceforthisreportingyearinplacesotherthaninyourCDPresponse?Ifso,pleaseattachthepublication(s).Publication


InmainstreamreportsStatusCompleteAttachthedocument20171231_alphabet_10K.pdfContentelementsStrategyRisks&opportunitiesOthermetricsOther,pleasespecify(Pages6and15ofAlphabet'sFY201710-K)

PublicationInvoluntarysustainabilityreportStatusUnderway–previousyearattachedAttachthedocumentgoogle-2017-environmental-report.pdfContentelementsGovernanceStrategyRisks&opportunitiesEmissionsfiguresEmissiontargetsOthermetricsOther,pleasespecify(Google'sFY2016EnvironmentalReport)

PublicationInvoluntarysustainabilityreportStatusUnderway–previousyearattachedAttachthedocument2016-Responsible-Supply-Chain-Report.pdfContentelements


GovernanceStrategyRisks&opportunitiesEmissionsfiguresEmissiontargetsOthermetricsOther,pleasespecify(FY2016ResponsibleSupplyChainreport)

PublicationInvoluntarycommunicationsStatusUnderway–previousyearattachedAttachthedocumentContentelementsGovernanceStrategyRisks&opportunitiesEmissionsfiguresEmissiontargetsOthermetricsOther,pleasespecify(https://environment.google/)

PublicationInvoluntarycommunicationsStatusCompleteAttachthedocumentachieving-100-renewable-energy-purchasing-goal.pdfContentelementsStrategyRisks&opportunitiesOthermetricsOther,pleasespecify(2016renewableenergywhitepaper)


C14.Signoff

C-FI

(C-FI)Usethisfieldtoprovideanyadditionalinformationorcontextthatyoufeelisrelevanttoyourorganization'sresponse.Pleasenotethatthisfieldisoptionalandisnotscored.Formoreinformationonhowclimatechangeisintegratedintoourbusinessstrategy,seetheresourcesbelow,aswellastheattachmentsinsection12.4‘Communication’:OVERALLENVIRONMENTALSTRATEGYGoogleEnvironmentwebsite(https://environment.google)GoogleEnvironmentalReport(https://environment.google/environmental-report/)ENERGYEFFICIENCYGoogleDataCenterswebsite:Efficiency:HowWeDoIt(https://www.google.com/about/datacenters/efficiency/internal/)2016spotlight:MachineLearningFindsNewWaysforOurDataCenterstoSaveEnergy(https://environment.google/projects/machine-learning/)RENEWABLEENERGY2016whitepaper:AchievingOur100%RenewableEnergyPurchasingGoalandGoingBeyond(https://static.googleusercontent.com/media/www.google.com/en//green/pdf/achieving-100-renewable-energy-purchasing-goal.pdf)2016spotlight:GreeningtheGrid:HowGoogleBuysRenewableEnergy(https://environment.google/projects/ppa/)2017spotlight:NorthernExposure:HowOurNordicRenewableDealsAreReapingRewards(https://environment.google/projects/northern-exposure/)2018blogpost:MeetingOurMatch:Buying100PercentRenewableEnergy(https://www.blog.google/outreach-initiatives/environment/meeting-our-match-buying-100-percent-renewable-energy/)OURCARBONFOOTPRINT


2011whitepaper:Google’sCarbonOffsets:CollaborationandDueDiligence(https://static.googleusercontent.com/media/www.google.com/en//green/pdfs/google-carbon-offsets.pdf)2017whitepaper:10YearsofCarbonNeutrality(https://storage.googleapis.com/gweb-environment.appspot.com/pdf/10-years-carbon-neutrality.pdf)2017spotlight:CapturingValuefromWasteinUpstateNewYork(https://environment.google/projects/landfill-NewYork/)HOWWEHELPUSERS&CUSTOMERSBECOMEMOREEFFICIENTGoogleCloudEnvironmentwebsite(https://cloud.google.com/environment/)GoogleCloudRenewableEnergywebsite(https://cloud.google.com/renewable-energy/)2011whitepaper'Google'sGreenComputing:EfficiencyatScale'(http://static.googleusercontent.com/external_content/untrusted_dlcp/www.google.com/en/us/green/pdfs/google-green-computing.pdf)2012whitepaper'GoogleApps:EnergyEfficiencyintheCloud'(http://static.googleusercontent.com/external_content/untrusted_dlcp/www.google.com/en/us/green/pdf/google-apps.pdf)GoogleMapsTransitInformation(http://googleblog.blogspot.com/2014/05/hop-on-boardand-go-almost-anywherewith.html)SUPPLYCHAINResponsibleSupplyChainwebsite(https://www.google.com/about/responsible-supply-chain/)Google'sSupplierCodeofConduct(http://www.google.com/about/company/responsible-manufacturing.html)PRODUCTS2018reports:ProductEnvironmentalreports(https://store.google.com/magazine/sustainability)C14.1

(C14.1)Providedetailsforthepersonthathassignedoff(approved)yourCDPclimatechangeresponse. Jobtitle Correspondingjobcategory

Row1 SeniorVicePresidentandChiefFinancialOfficer,AlphabetInc.andGoogleLLC. ChiefFinancialOfficer(CFO)

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