  {"id":14051,"date":"2016-11-04T17:59:15","date_gmt":"2016-11-04T21:59:15","guid":{"rendered":"https:\/\/digital.hbs.edu\/platform-rctom\/submission\/can-google-stay-googley-with-climate-change\/"},"modified":"2016-11-04T18:04:08","modified_gmt":"2016-11-04T22:04:08","slug":"can-google-stay-googley-with-climate-change","status":"publish","type":"hck-submission","link":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/can-google-stay-googley-with-climate-change\/","title":{"rendered":"Can Google stay \u201cGoogley\u201d with climate change?"},"content":{"rendered":"<p><span style=\"font-weight: 400\">Few people will argue that Google\u2019s staggering business growth, innovative products, luxurious perks, and futuristic campuses make it one of the most sought-after places to work. These were certainly key considerations that drove me to work there for a number of years. However, the long-term viability of each of these key factors warrants more scrutiny in the context of global climate change. Can Google maintain all the things that make it \u201cGoogley\u201d in an environment where physical changes to the world will affect the very places it has employees? <\/span><\/p>\n<p><span style=\"font-weight: 400\">It may not seem obvious that climate change could affect Google\u2019s day-to-day operations. However, Google, like most large technology companies, relies heavily on the use of data centers to power its operations. Data centers are incredibly energy-intensive structures, consuming in many instances 100-200 times the energy of a typical office building [1]. Regulation targeting greenhouse gas emissions has the potential to restrict energy supply and thereby increase energy costs [2]. As a result, Google\u2019s operating margins for its core business are incredibly susceptible to potential energy price volatility driven by climate change [3].<\/span><\/p>\n<p><span style=\"font-weight: 400\">Climate change will likely affect a number of additional parts of Google\u2019s business, especially those with deep supply chains. One critical part of Google\u2019s culture is the fresh, delicious, and free food prepared onsite with the help of a complex network of food distributors and farmers who bring high-quality ingredients to the Google campuses worldwide. Climate change may threaten the financial viability of this offering by increasing temperatures and the frequency of extreme weather events, which would in turn limit food production and increase food costs [4].<\/span><\/p>\n<p><span style=\"font-weight: 400\">Finally, climate change is a key consideration for Google\u2019s long-term planning for physical space. The design and location of buildings is an important and beloved facet of Google\u2019s culture for employees and visitors alike. One key impact of climate change is rising sea levels, which threaten to submerge two-thirds of the world\u2019s largest cities due to their low altitude [5]. In particular, Google\u2019s headquarters and the homes of many of its employees are located in Silicon Valley, which is 3-10 feet below sea level and dependent on levees to hold back seawater [6]. The design and location of physical space must account for the risk of sea level rise in the areas most affected.<\/span><\/p>\n<p><span style=\"font-weight: 400\">Google is not standing pat, however. First, the company has worked hard to ensure that its data centers are best-in-class in terms of energy efficiency. Its data centers consume 50% less energy than the typical data center, by employing techniques like using outside air in cold environments and reusing water sources [7]. In addition, the company provides shuttle transportation for about 6,400 employees daily, which reduces emissions by getting individual cars off the road [8]. In terms of its real estate, Google attempts to build energy efficiency into as many facets of the workplace experience as possible. For example, Google installed solar panels on a number of buildings in its headquarters that supply 30% of peak energy consumption [9]. Finally, Google has committed to use 100% renewable energy and has made considerable investments in renewable energy [10]. In fact, its commitments would make it \u201cone of the largest corporate investors in renewable energy in the world,\u201d which is fairly unique for a technology company [11].<\/span><\/p>\n<p><span style=\"font-weight: 400\">Despite this high level of awareness and effort, there are still additional avenues Google can pursue. First, its current (publicly announced) plans do little to address the concerns raised above about physical space and the impacts of sea level rise. Google has a presence in just about every major coastal city in the United States [12]. This strikes me as a prime opportunity for investment in climate change adaptation projects, such as fortifying levees in low-lying coastal cities. This is typically a task we expect of government, but given Google\u2019s considerable resources &#8212; over $5 billion in net income in Q3 2016 &#8212; there is ample capacity to take a more active role in attacking challenges from climate change [13].<\/span><\/p>\n<p><span style=\"font-weight: 400\">In addition, Google is well-positioned to monetize opportunities presented by climate change. One example is cloud-based storage, an opportunity for which Google recently commissioned a study that showed that cloud computing could reduce IT energy costs by 87% [14]. Google already provides cloud-based services, but if climate change has a significant impact on energy prices, this market could open up significantly.<\/span><\/p>\n<p><span style=\"font-weight: 400\">Google of the future could look massively different from the Google of today, depending on a number of uncertain factors related to the planet. Although preparation for climate change is never mentioned in the \u201cbest place to work\u201d reports, it could theoretically impact the culture of any of the ranked organizations in obvious or subtle ways &#8211; perhaps we should expand our evaluation criteria.<\/span><\/p>\n<p><span style=\"font-weight: 400\">Word Count (791)<\/span><\/p>\n<p><span style=\"font-weight: 400\">References:<\/span><\/p>\n<ol>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">United Nations Environmental Programme, \u201cGEO-5 for Business: Impacts of a Changing Environment on the Corporate Sector<\/span><span style=\"font-weight: 400\">,\u201d pg. 36.<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Ibid, pg. 22<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Ibid, pg. 36<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Henderson, Rebecca M. et al. \u201cClimate Change in 2016: Implications for Business,\u201d pg. 4-5 (October 2016).<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Ibid, pg. 4<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">United Nations Environmental Programme, \u201cGEO-5 for Business: Impacts of a Changing Environment on the Corporate Sector<\/span><span style=\"font-weight: 400\">,\u201d pg. 36.<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Google, <\/span><a href=\"https:\/\/www.google.com\/green\/efficiency\/datacenters\/\"><span style=\"font-weight: 400\">https:\/\/www.google.com\/green\/efficiency\/datacenters\/<\/span><\/a><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Google, <\/span><a href=\"https:\/\/www.google.com\/green\/efficiency\/oncampus\/#commuting\"><span style=\"font-weight: 400\">https:\/\/www.google.com\/green\/efficiency\/oncampus\/#commuting<\/span><\/a><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Google, <\/span><a href=\"https:\/\/www.google.com\/green\/efficiency\/oncampus\/#building\"><span style=\"font-weight: 400\">https:\/\/www.google.com\/green\/efficiency\/oncampus\/#building<\/span><\/a><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Google, <\/span><a href=\"https:\/\/www.google.com\/green\/energy\/\"><span style=\"font-weight: 400\">https:\/\/www.google.com\/green\/energy\/<\/span><\/a><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Google, <\/span><a href=\"https:\/\/www.google.com\/green\/energy\/\"><span style=\"font-weight: 400\">https:\/\/www.google.com\/green\/energy\/<\/span><\/a><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Google, <\/span><a href=\"https:\/\/www.google.com\/about\/company\/facts\/locations\/\"><span style=\"font-weight: 400\">https:\/\/www.google.com\/about\/company\/facts\/locations\/<\/span><\/a><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Google, <\/span><a href=\"https:\/\/abc.xyz\/investor\/news\/earnings\/2016\/Q3_alphabet_earnings\/\"><span style=\"font-weight: 400\">https:\/\/abc.xyz\/investor\/news\/earnings\/2016\/Q3_alphabet_earnings\/<\/span><\/a><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Google, <\/span><a href=\"https:\/\/www.google.com\/green\/efficiency\/industry-collaboration\/\"><span style=\"font-weight: 400\">https:\/\/www.google.com\/green\/efficiency\/industry-collaboration\/<\/span><\/a><\/li>\n<\/ol>\n<p>Photo credit:\u00a0https:\/\/www.google.com\/green\/energy\/<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Few people will argue that Google\u2019s staggering business growth, innovative products, luxurious perks, and futuristic campuses make it one of the most sought-after places to work. These were certainly key considerations that drove me to work there for a number [&hellip;]<\/p>\n","protected":false},"author":2251,"featured_media":14141,"comment_status":"open","ping_status":"closed","template":"","categories":[1218,765],"class_list":["post-14051","hck-submission","type-hck-submission","status-publish","has-post-thumbnail","hentry","category-climate-change","category-google"],"connected_submission_link":"https:\/\/d3.harvard.edu\/platform-rctom\/assignment\/climate-change-challenge-2016\/","yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Can Google stay \u201cGoogley\u201d with climate change? - Technology and Operations Management<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/can-google-stay-googley-with-climate-change\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Can Google stay \u201cGoogley\u201d with climate change? - Technology and Operations Management\" \/>\n<meta property=\"og:description\" content=\"Few people will argue that Google\u2019s staggering business growth, innovative products, luxurious perks, and futuristic campuses make it one of the most sought-after places to work. 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