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MSCI Rates Google AA. Our Methodology Says -70. Here's Why.

company analysisESG ratingsdata privacy
February 25, 2026

Summary

Alphabet Inc. is the most widely held stock on earth. MSCI — the world's largest ESG ratings provider — gives Alphabet a rating of AA, placing it among global ESG leaders.

Our methodology, which scores companies based on court filings, regulatory actions, and verified public records, produces a different result.

ValueScoreGrade
Honest & Fair Business-70Integrity Violator
No War, No Weapons-70Conflict Contributor
Safe & Smart Tech-60Data Violator
Planet-Friendly Business-50Climate Offender
Respect for Cultures & Communities-40Heritage Disruptor

Honest & Fair Business: -70

Alphabet was fined $2.7 billion by the European Union's Court of Justice in September 2024 for violating antitrust rules by favouring its own services in search results.

The company faces multiple ongoing antitrust lawsuits, including one filed by the US Department of Justice in January 2023 for allegedly monopolising the digital advertising market.

In April 2024, Google agreed to delete billions of personal data records in a settlement addressing privacy concerns related to Chrome users.

A securities class action lawsuit alleges misleading statements about business operations.

A March 2025 report criticised Google's tax practices, workers' rights issues, and environmental impact.

MSCI rating: AA (Leader). Our score: -70.


No War, No Weapons: -70

In February 2025, Alphabet revised its AI principles, removing prior commitments against developing AI for weapons or surveillance. The company no longer has codified ethical red lines against these activities.

Alphabet provides cloud and AI technologies to the Israeli government and military through Project Nimbus, enhancing surveillance and analysis capabilities — with no public disclosures on this involvement.

Alphabet's Gemini for Government AI system was selected by the US Defense Department to analyse video and imagery. Google won a contract of up to $200 million with the DoD to scale advanced AI capabilities for national security.

These represent significant investments in dual-use technologies for military applications.


Safe & Smart Tech: -60

Alphabet updated its AI principles in 2025, removing bans on developing technologies for weapons.

An ongoing 2024 probe by the Irish Data Protection Commission is examining Google's AI compliance with EU privacy laws regarding data protection for AI training.

The removal of the AI weapons ban reflects concerns regarding the company's AI ethics governance and its support for digital rights.


Planet-Friendly Business: -50

Alphabet's total Scope 1, 2, and 3 greenhouse gas emissions were 23.4 million tCO2e in 2024 — a 16.3% increase from 2023.

The company's net-zero target year is 2030, but emissions are rising, not falling.

Google was forced to halt plans for a data centre in Chile due to concerns over water-intensive cooling systems.

In 2024, Alphabet powered 66% of its global operations with carbon-free energy and diverted 84% of operational waste.


The Ratings Gap

MSCI gives Alphabet AA — their second-highest rating. This places Google alongside companies recognised as ESG leaders.

Our methodology examines court filings, regulatory penalties, and investigative reports. It finds a $2.7 billion antitrust fine, rising emissions, removed AI ethics commitments, and active military contracts.

The question is not whether our score is right or MSCI's score is right. The question is: what evidence is each score based on?

Ours is public.

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