Through its ubiquitous platforms and services, Alphabet/Google has become an influential global force that has democratized information collection and sharing, connected and empowered communities, and transformed media and entertainment. While its technologies have tremendous power and potential to benefit society, without proper oversight these same technologies and the ways that companies deploy them can cause specific human rights impacts and unintended, widespread harm.
It is incumbent upon investors to understand how companies are assessing and mitigating the human rights and ethical risks these technologies pose to society. For investors in Alphabet, this is especially true. Its open-source AI platforms, cloud computing and analytics have extensive reach beyond the technology sectors, covering its clients in other industries, including financial services, healthcare, industrials, utilities and consumer retail. This can create or magnify myriad risks to the company, individuals, and society—including human rights risks such as those related to surveillance, privacy, and freedom of expression. However, there is no concrete evidence to suggest that Alphabet has a holistic oversight structure with the necessary mandate and expertise to assess the full range of risks. There is also no apparent independent review process equipped to anticipate and address the real and potential human rights impacts of its operations, technologies or business relationships.
Shareholders therefore want Alphabet to improve transparency and accountability regarding how the company manages these risks. As part of this work, Federated Hermes, NEI Investments, Robeco and The Sustainability Group of Loring, Wolcott and Coolidge have filed a shareholder proposal asking Alphabet to establish a human rights risk oversight committee of the board of directors. Investors believe the committee should provide an ongoing review of corporate policies and practices, above and beyond legal and regulatory matters, to assess how Alphabet manages the current and potential impacts of its products and services on human rights. Additionally, the committee should oversee the extent to which Alphabet is meeting international human rights responsibilities, and offer guidance on strategic decisions.
We believe a human rights risk oversight committee should be drawn from internal and independent experts, in line with the board’s mandate to remain accountable to shareholders, operate outside of the day-to-day decision-making process, and manage higher-level strategic issues. This committee would best position Alphabet to oversee human rights risks in a way that protects the company and its investors, and respects the rights of individuals throughout the value chain.
This engagement is one of the Investor Alliance for Human Rights’ priority engagements with companies in the Information and Communication Technologies sector. The Investor Alliance provides a platform for responsible investment grounded in respect for people’s fundamental rights. With 170 members representing nearly US$4 trillion, we seek to promote robust human rights governance and oversight mechanisms across many of the world’s tech giants, including Alphabet, Amazon, and Facebook.
The views and opinions contained herein are those of the authors and may not necessarily represent views expressed or reflected in other Federated Hermes communications, strategies or products.
Larisa Ruoff
Director of Shareholder Advocacy, The Sustainability Group of Loring, Wolcott & Coolidge
Dr. Christine Chow
Director, EOS at Federated Hermes