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 Net Zero 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 net-zero target for its operations, products, and supply chain by 2030. The company has specific goals related to scope 1, scope 2, and scope 3 emissions, which it aims to reduce. Microsoft's latest filings mentioned the keywords 'Carbon' and 'Emissions' most number of times in relation to 'Net Zero'.
Microsoft's carbon intensity estimates for its data centers associated with usage of SharePoint and OneDrive for each month in the 2022 fiscal year was calculated by dividing the monthly data center emissions by the volume of data stored in these tools. In 2022, emissions under scopes 1 and 2 totaled about 428,000 mtCO2e. Scope 3 emissions, which come from the supply chain, the lifecycle of hardware and gadgets, travel, and other indirect sources, account for more than 96% of business emissions.
Over 13.5 GW of carbon-free energy was added to the company's portfolio in 2022 through the signing of new power purchase agreements worldwide. Microsoft's carbon emissions are a significant contributor to its environmental impact. Company uses 100% carbon-free energy in first all-electric kitchen on the Redmond campus. The company is a founding member of the Green Software Foundation, which is focused on building a trusted ecosystem of people, standards, tooling, and best practices for building carbon-aware software. Microsoft is also a participating organization of the Carbon Call, a multiple stakeholder initiative focused on advancing more reliable and interoperable global carbon accounting.
In conclusion, Microsoft has taken steps to reduce emissions, including investments in renewable energy and carbon removal technologies. Moreover, by improving energy efficiency and switching to 100% renewable energy by 2025, the Microsoft will cut Scope 1 and 2 emissions to almost zero. The company aims to cut Scope 3 emissions from a baseline of 2020 by more than half by 2030. The company has also launched sustainability training courses for employees and partnered with organizations to accelerate climate action. Microsoft's commitment to sustainability is reflected in its endorsement of the United Nations Global Compact CEO Water Mandate, launch of Minecraft maps with BBC Earth, and participation in initiatives such as the Sustainable Semiconductor Technology and Systems.