Objective: Create a Service Account that can list Compute Engine instances in the project following Google-recommended practices.

Solution: Create a custom role and assign it to the Service Account.

Steps:

Step 1: Open the Google Cloud Console.

Step 2: Navigate to the IAM & Admin page and select "Roles".

Step 3: Click on "Create Role" and define a new role with a suitable name and description.

Step 4: Add the permission compute.instances.list to the custom role.

Step 5: Save the custom role.

Step 6: Go to the "Service Accounts" section.

Step 7: Create a new Service Account or select an existing one.

Step 8: Assign the newly created custom role to the Service Account.

By creating a custom role with the specific permission to list Compute Engine instances, you follow the principle of least privilege, which is a recommended security practice.