Highly disingenuous. First, AI being trained on copyrighted data is considered fair use because it transforms the underlying data rather than distribute it as is. Though I have to agree that this is the relatively strongest ethical claim to stop using AI but stands weak if looked at on the whole.
The fact that they mentioned "energy and water use" should tell you that they are really looking for reasons to disparage AI. AI doesn't use any more water or energy than any other tool. An hour of Netflix uses same energy as more than 100 GPT questions. A single 10 hour flight (per person*) emits as much as around 100k GPT prompts. It is strange that one would repeat the same nonsense about AI without primary motive being ideological.
"The advertising and use of AI models has caused a significant harm to employees and reduction of service quality." this is just a shoddy opinion at this point.
To be clear - I understand why they might ban AI for code submissions. It reduces the barrier significantly and increases the noise. But the reasoning is motivated from a wrong place.