GlobalData offers a comprehensive analysis of Microsoft, providing key insights into its Environmental, Social, and Governance(ESG) factors. By closely monitoring and aggregating mentions of climate change and associated ESG keywords, GlobalData delivers valuable information on Microsoft‘s ESG performance. GlobalData’s company profile on Microsoft offers a 360-degree view of the company, SWOT analysis, key financials, and business strategy including insights on ESG implementation among other information. Buy the report here.

Microsoft has set a target to reach beyond net zero by 2050. The company aims to achieve a carbon-negative, water positive, zero waste status by the year 2030. By 2050, it aims to eliminate from the atmosphere a quantity of carbon dioxide equivalent to the total emissions produced, both directly and through electricity consumption, since its establishment in 1975, reflecting its commitment to environmental sustainability and a net reduction in carbon emissions. The company also plans to nearly eliminate Scope 1 and 2 emissions by 2025 through enhanced energy efficiency measures, decarbonization efforts, and achieving 100 percent reliance on renewable energy sources, while it has set a target to achieve a reduction of more than 50% in Scope 3 emissions from a 2020 baseline by the year 2030.

In 2022, Microsoft reported Scope 1 emissions of 139,413 mtCO2e, Scope 2 emissions of 288,029 mtCO2e, and Scope 3 emissions of 12,571,000 mtCO2e. Furthermore, the company acquired 1.44 million metric tons and retired 514,156 metric tons of carbon removal, contributing to its annual carbon commitment in the pursuit of carbon neutrality. In 2022, the company reported a substantial decrease of 22.7 percent in direct operational emissions (Scope 1 and 2), while Scope 3 emissions slightly rose by 0.5 percent, emphasizing the predominant influence of indirect emissions, which constitute over 96 percent of the company's total emissions.

The company has developed an Emissions Impact Dashboard to track and report its emissions. Microsoft has taken steps to reduce its emissions and achieve its net-zero targets. The company has made investments in renewable energy and has procured power from specific suppliers or sources. It is also working on improving the recyclability of hard disk drives and automating the disassembly process. Microsoft is actively engaged in employee training and green skilling to build sustainability skills and support the global transition to environmental sustainability.

In addition, Microsoft has formed strategic partnerships with organizations such as the United Nations Global Compact CEO Water Mandate and the Green Software Foundation. These partnerships aim to address shared water challenges and build a trusted ecosystem for carbon-aware software development. Microsoft is also a founding member of initiatives like Transform to Net Zero and the Carbon Call, which focus on accelerating the transition to a net-zero global economy and advancing reliable and interoperable global carbon accounting.

In summary, Microsoft remains resolute in its pledge to achieve carbon negativity by 2030, surpassing mere net-zero objectives. The company has shown notable strides in emission reduction, actively advancing with specific targets for scope 1, 2, and 3 emissions. Through strategic investments, partnerships, and employee engagement, Microsoft actively endeavors to reduce its carbon footprint, ultimately striving towards the realization of a sustainable future.

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