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2024 Environmental
Sustainability Report
Data Fact Sheet

Reporting on our 2023 fiscal year

Environmental Data Fact Sheet 2024

Our environmental data
As part of Microsoft’s commitment to disclose information about our environmental footprint, the following
sections are a compilation of environmental metrics across greenhouse gas (GHG) emissions, energy, water, waste
and circularity, and land. Section 1 presents greenhouse gas emissions in accordance with the GHG Protocol
and management’s criteria, and select environmental metrics that both reference the Global Reporting Initiative(GRI) Standards and are reported in accordance with management’s criteria. Deloitte & Touche LLP performed areview engagement on management’s assertion related to the specified information presented in Section 1 of thisEnvironmental Data Fact Sheet as of and for the fiscal year ended June 30, 2023 (FY23) and includes their review
report. Information relating to i) periods prior to the year ended June 30, 2023 (FY23), and ii) forward-looking
statements, goals, and progress against goals, were not subject to the review and, accordingly, Deloitte & Touche
LLP does not express a conclusion or any form of assurance on such information. Section 2 presents additional
environmental metrics that show detail and breakdowns and was not subject to Deloitte & Touche LLP’s review.
All reported values represent best available data at the time of publication. Data is adjusted to incorporate updated
methodology, structural changes, and/or accuracy improvements per our recalculation policy described herein.
Microsoft’s structural changes policy is to begin including data the year following a merger and/or acquisition.
Divestments will be reflected on data associated to the year when they occurred. Additional detail on these changes
is included as footnotes where applicable.

Read our 2024 Environmental Sustainability Report

02

Environmental data contents
Section 1: Our environmental data
1.1 Greenhouse gas (GHG) emissions
Table 1a GHG emissions by scope (mtCO2e)
Table 1b GHG emissions by scope (mtCO2e) with management’s criteria
Table 2 GHG emissions by type
Table 3 GHG emissions by region (mtCO2e)
Table 4 GHG emissions intensity (mtCO2e/revenue $M)
Table 5 Carbon offsets (mtCO2e)
1.2 Energy
Table 6 Energy consumption within the organization (MWh)Table 7 Renewable energy metrics
Table 8 Energy intensity (MWh/revenue $M)
1.3 Water
Table 9 Water and effluents (megaliters)
1.4 Waste and circularity
Table 10 Operational waste generated, diverted, and directed to disposal (metric tons)
Table 11 Product packaging circularity metrics
1.5 Ecosystems
Table 12 Land protection
1.6 Management’s assertion
1.7 Description of the company and inventory boundary
1.8 Information on metrics
1.9 Methodology and emission factors
1.10 Reporting criteria
1.11 Independent accountant’s review report
Section 2: Additional environmental metrics
Table 13 Other emissions (metric tons)
Table 14 Electricity consumption by region (MWh)Table 15 Renewable electricity consumption by region (MWh)Table 16 Non-renewable energy by region (MWh)Table 17 Water withdrawal, consumption, and discharge detail (megaliters)
Table 18 Verification/assurance

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Environmental Data Fact Sheet 2024

Section 1:
Our environmental data

03

1.1 Greenhouse gas (GHG) emissions
Table 1A – GHG emissions by scope (mtCO2e)
FY20

FY21

FY22

FY23

118,100

123,704

139,413

144,960

4,328,916

5,010,667

6,381,250

8,077,403

Market-based

456,119

429,405

288,029

393,134

Subtotal emissions (Scope 1 + 2 market-based)574,219553,109427,442538,094

Category 1 – Purchased Goods & Services2

4,415,000

4,930,000

5,780,000

5,564,000

Category 2 – Capital Goods

2,962,000

4,179,000

4,026,000

5,872,000

Scope 1
Scope 2
Location-based

Scope 31

Category 3 – Fuel- and Energy-Related Activities

300,000

350,000

450,000

521,000

Category 4 – Upstream Transportation3

243,000

225,000

371,000

318,000

9,500

5,700

8,000

8,000

Category 6 – Business Travel

329,356

21,901

139,000

133,000

Category 7 – Employee Commuting

317,000

80,000141,000

187,000

Category 5 – Waste

Category 9 – Downstream Transportation
Category 11 – Use of Sold Products
Category 12 – End-of-Life of Sold Products

2. Reported emissions for this category now incorporate emissions calculated using the life cycle assessment (LCA)
coefficients for the portion associated with the manufacture of Microsoft devices as outlined in Section 1.9. Values for
FY22 (previous year), and FY20 (base year) have been adjusted to reflect the following changes: incorporation of LCA
methodology and estimation for the Nuance acquisition.
3. Reported emissions for this category now incorporate emissions calculated following the Global Logistics Emissions
Council (GLEC) Framework for our Devices and Cloud business groups as outlined in Section 1.9. Values for FY22
(previous year), and FY20 (base year) have been adjusted to reflect this change.
4. These values reflect market-based emissions. Values rounded to nearest thousand mtCO2e.

69,00069,00069,0003,950,000

5,101,000

3,941,000

17,00019,00018,0004,000

11,800

9,600

8,000

7,000

Subtotal emissions4

11,653,000

13,839,000

16,111,000

16,624,000

Total emissions (Scope 1 + 2 + 3)4

12,227,000

14,392,000

16,538,000

17,162,000

Category 13 – Downstream Leased Assets

1. For FY20 and FY21, values have been rounded except for Business Travel. Starting in FY22, all reported Scope 3 values
are rounded to the nearest thousand mtCO2e.

65,0002,983,000

Environmental Data Fact Sheet 2024

04

Table 1B – GHG emissions by scope (mtCO2e) with management’s criteria
Scope 1 + 21

Table 2 – GHG emissions by type

FY20

FY21

FY22

FY23

574,219553,109427,442538,094

Scope 3
Management’s criteria2Category 4 – Upstream Transportation with SAFc

243,000

225,000

371,000

305,000

Category 6 – Business Travel with SAFc

385,000

23,000157,000

124,000

2,600,000

2,622,000

1,332,000

2,158,000

Category 11 – Use of Sold Products

3

GHGP-aligned
Rest of the categories

(mt)

FY20

FY21

FY22

FY23

Scope 1 – CO2

96,70094,29299,123

92,466

Scope 1 – CH4

2

3

2

3

Scope 1 – N2O

1

1

1

1

Scope 1 – HFCs

19

27

37

49

Scope 1 – SF6

0

0

0

0

Scope 1

Scope 2 (location-based)
1,4

Subtotal emissions
Total emissions (Scope 1 + 2 + 3)

1

8,097,000

9,642,000

10,500,000

12,232,000

Scope 2 – CO2

4,305,119

4,984,442

6,349,431

8,034,943

11,325,000

12,512,000

12,360,000

14,819,000

Scope 2 – CH4

283

330

382

515

11,899,000

13,065,000

12,787,000

15,357,000

Scope 2 – N2O

56

60

75

99

Scope 2 – CO2

454,034

427,606

286,992

390,884

Scope 2 – CH4

19

18

10

23

Scope 2 – N2O

5

5

3

6

Scope 1

118,100

123,704

139,413

144,960

Scope 1 – CO2

96,70094,29299,123

92,466

Scope 2 (market-based)(mtCO2e)

Scope 1 – CH4

53

63

62

63

Scope 1 – N2O

236

150

209

292

Scope 1 – HFCs

21,07029,17739,99352,087

41

22

26

52

Scope 2 (location-based)

4,328,916

5,010,667

6,381,250

8,077,403
8,034,943

Scope 1 – SF6
1. These values reflect market-based emissions.
2. Emissions for these categories are reported per the reporting criteria defined in Section 1.10 of this fact sheet and per
the methodologies outlined in Section 1.9. All values have been rounded to the nearest thousand mtCO2e.
3. Per the reporting criteria defined in Section 1.10 of this fact sheet, reported values are gross emissions net ofrenewable electricity. Gross emissions without the impact of renewable electricity are as follows: 2,158,000 mtCO2e(FY23), 2,207,000 mtCO2e (FY22), 2,622,000 mtCO2e (FY21), 2,600,000 mtCO2e (FY20).
4. Reported value represents a sum of Category 1 – Purchased Goods & Services, Category 2 – Capital Goods,
Category 3 – Fuel- and Energy-Related Activities, Category 5 – Waste, Category 7 – Employee Commuting,
Category 9 – Downstream Transportation, Category 12 – End-of-Life of Sold Products, and Category 13 – Downstream
Leased Assets. All values have been rounded to the nearest thousand mtCO2e.

Scope 2 – CO2

4,305,119

4,984,442

6,349,431

Scope 2 – CH4

7,063

8,248

9,543

12,868

Scope 2 – N2O

16,734

17,977

22,276

29,592

Scope 2 (market-based)

456,119

429,405

288,029

393,134

Scope 2 – CO2

454,034

427,606

286,992

390,884

Scope 2 – CH4

483

456

243

571

Scope 2 – N2O

1,602

1,343

794

1,679

Environmental Data Fact Sheet 202405

Table 4 – GHG emissions intensity (mtCO2e/revenue $M)

Table 3 – GHG emissions by region (mtCO2e)
FY20

FY21

FY22

FY23
Revenue ($M)

Scope 1

FY20

FY21

FY22

FY23

143,015

168,088

198,270

211,915

Asia

8,650

9,664

13,532

18,529

Scope 1

0.8

0.7

0.7

0.7

Europe, Middle East, Africa

61,71969,251

68,181

51,866

Scope 2 (location-based)

30.3

29.8

32.2

38.1

Latin America

3,871

4,403

4,522

4,604

Scope 2 (market-based)

3.2

2.6

1.5

1.9

North America

43,86040,38653,17869,961

Scope 3 (market-based)

81.5

82.3

81.3

78.4

Subtotal

118,100

123,704

139,413

144,960

Scope 1 + 2 (location-based)

31.1

30.5

32.9

38.8

4.0

3.3

2.2

2.6

85.5

85.6

83.5

81.0

1

Scope 1 + 2 (market-based)

Scope 2 (location-based)
Asia

905,585

1,082,697

1,660,153

2,044,242

Europe, Middle East, Africa

902,859

916,141

1,252,717

1,547,728

Latin America

16,022

16,47951,32845,038

North America

2,504,450

2,995,350

3,417,052

4,440,395

Subtotal

4,328,916

5,010,667

6,381,250

8,077,403

Asia

320,449

297,646

274,585

369,346

Europe, Middle East, Africa

Scope 1 + 2 + 3 (market-based)

1

1. Emission values (numerator) for FY22 (previous year) and FY20 (base year) have been adjusted to reflect the followingchanges: incorporation of LCA methodology, estimation for the Nuance acquisition, and emissions calculated
following the Global Logistics Emissions Council (GLEC) Framework for our devices and Cloud business groups.

Table 5 – Carbon offsets (mtCO2e)

Scope 2 (market-based)

FY20

FY21

FY22

FY23

GHG emissions within carbon neutral boundary1

612,927

292,106

514,156

605,354

Offsets applied to reporting year

49,37754,805

13,167

22,775612,927

292,106

514,156

605,354

Latin America

594

708

247

202

Net GHG emissions within carbon neutral boundary1,2

–

–

–

–

North America

85,69976,24630

811

Total removal offsets contracted–

1,391,187

1,443,981

5,015,019

Subtotal

456,119

429,405

288,029

393,134

3

1. This data supports Microsoft’s target to be carbon neutral every year since fiscal year 2013. Microsoft defines carbon
neutrality as matching the emissions within the carbon neutrality boundary with an equivalent amount of carbon
offsets as shown in this table. The boundary for this carbon neutral goal includes global Scope 1, Scope 2 marketbased, and Scope 3 business air travel emissions. Starting in FY23, values for Scope 3 business air travel emissions
follow management’s criteria as reported under Category 6 – Business Travel with SAFc. For more detail on carbon
credits we purchase and emissions methodology, please see Sections 1.8 and 1.9 of this Fact Sheet. As we madeprogress towards our carbon negative targets, which included purchasing removal offsets, we also maintainedcarbon neutrality.
2. Values reflect Microsoft’s carbon neutrality at the time of reporting. Per our carbon negative target, by 2050 we
expect to have removed from the environment all the carbon the company has emitted either directly or by electricalconsumption since it was founded in 1975.
3. Values reported represent offsets contracted to be delivered in the current or future fiscal year. Contracted removal
values only include removal credits that have been evaluated as consistent with Microsoft’s quality removal criteria.
This number might change based on actual versus projected outcomes related to contract fulfillment (delivery ofoffsets). Only removal offsets that are delivered get applied/retired against our carbon neutral boundary.

Environmental Data Fact Sheet 2024

06

1.2 Energy

Table 8 – Energy intensity (MWh/revenue $M)

Table 6 – Energy consumption within the organization (MWh)
FY20

FY21

FY22

FY23

11,283,502

14,133,987

18,644,872

24,007,868

Non-renewable fuel consumed

449,304

446,417473,137

413,955

Natural gas

218,557

249,443

273,964

150,972

Crude oil/diesel

147,297

143,370

117,195

160,754

LPG/propane/jet fuel40,4504,245

34,152

54,239Gasoline

43,00049,35947,82647,990Electricity, heating, cooling, and steam

10,834,198

13,687,570

18,171,735

23,593,913

Electricity

10,770,714

13,621,517

18,153,454

23,567,502

Cooling (chilled water)

51,02654,953

7,393

12,090Hot water/steam

12,458

11,10010,88814,321

Total renewable electricity consumption2

10,244,377

12,969,393

18,153,454

23,567,502

Renewable energy credits and PPAs

10,244,059

12,969,246

18,153,218

23,564,161

318

147

236

3,341

Total energy consumption

1

Onsite renewable energy

Electricity consumed within the organization (MWh)Revenue ($M)
Electricity consumption normalized by revenue(MWh/$M)

FY20

FY21

FY22

FY23

10,770,714

13,621,517

18,153,454

23,567,502

143,015

168,088

198,270

211,915

75

81

92

111

FY20

FY21

FY22

FY23

7,936

8,068

10,706

12,951

1.3 Water
Table 9 – Water and effluents (megaliters)1
Total water withdrawals

2

7,831

8,011

10,665

12,926

Surface water

89

41

39

21

Ground water

16

16

2

4
5,107

Third-party water

Total water discharges

3,740

3,295

4,307

Third-party water

3,740

3,295

4,307

5,107

Total water consumption2

4,196

4,773

6,399

7,844

2,3

1. Only reported categories and values are applicable to Microsoft’s energy consumption. Renewable fuels, electricity
sold, heating sold, cooling sold, and steam sold categories are currently not applicable. Reported values for FY23
expressed in gigajoules (GJ): total energy consumption equals 86,428,325 GJ, and total non-renewable fuel consumed
equals 1,490,239 GJ.
2. Reported values represent Microsoft’s total renewable energy consumption expressed in MWh from onsite,
renewable energy credits, power purchase agreements (PPAs), and green power tariff programs. Values reflect
Microsoft’s renewable electricity consumption at the time of reporting.

Table 7 – Renewable energy metrics
Percentage of renewable electricity1
Percentage of direct renewable electricity

FY20

FY21

FY22

FY23

100%

100%

100%

100%

–

–

62%

59%

1. Values reflect Microsoft’s percentage of renewable electricity consumption at the time of reporting.

1. For FY23, total water withdrawal from areas with water stress was 5,326 megaliters (ML) (41%) and was primarilysourced from third-party water; total water discharge to areas with water stress was 2,045 ML (40%); and total water
consumption from areas with water stress was 3,281 ML (42%). Water risk assessment was conducted using WRI’s
Aqueduct tool for areas in high or extremely high baseline water stress.
2. Brackish surface water/seawater and produced water categories are not relevant to Microsoft since there is no direct
withdrawal or discharge of water from and to these sources. For withdrawals, data breakdown between “freshwater”
and “other water” categories, and data for third-party withdrawal sources for areas with water stress is currently
unavailable and will be part of data improvements going forward. For the periods presented we are not gathering
data around water storage since it is not a significant portion of our water inventory.
3. Only discharges to third parties are relevant since water that is not consumed at Microsoft sites is discharged to local
municipal treatment plants. Discharges to surface water, groundwater, and seawater, and volume sent for use to otherorganizations are not applicable. For discharges, data breakdown between “freshwater” and “other water” categories
is currently unavailable and will be part of data improvements going forward. Primary treatment of water is not
relevant because there are no onsite water treatment plants in Microsoft operations, as there is no requirement to
conduct onsite primary treatment of discharge by any environmental regulation or standard.

Environmental Data Fact Sheet 2024

07

1.4 Waste and circularity

Table 11 – Product packaging circularity metrics

Table 10 – Operational waste generated, diverted, and directed to disposal (metric tons)1,4Non-hazardous
Diverted

Directed to disposal

31,102

20,76828,71536,197

Percentage of single-use plastics in product packaging

1.5 Ecosystems

1,136

2,171

2,931

3,788

9,589

10,233

14,512Composted

10,104

1,776

3,106

6,170

Subtotal

19,692

13,536

16,27024,47010,848

6,957

12,204

11,510Incinerated

562

275

241

217

Subtotal

11,4107,232

12,445

11,727

1,750

881

195

Recycled

7,581

1,742

879

193

Reused

1,880

0

0

0

Subtotal

9,461

1,742

879

193

8

8

2

2

Diverted subtotal

29,153

15,27817,14924,663

Directed to disposal subtotal

11,4187,240

12,447

11,729Total waste generated

40,571

22,51829,59636,392

Directed to disposal

Other3

2.7%

FY23

9,469

Diverted

3.3%

FY22

8,452

Hazardous

93.9%

FY21

Recycled

2

FY23

94.4%

FY20
ReusedLandfilled

FY22
Percentage of product packaging recyclability

Table 12 – Land protection
Total acres categorized
by the status at the closeof the reporting period
as either (i) funded or (ii)protected

A description ofpartnerships for which
contributions weremade that exist withthird parties to protect
habitat areas

StatusCountry

FY21

FY22

FY23

Funded1

US

4,998

4,998

5,169

Protected

Belize12,27012,27012,270Subtotal

17,26817,26817,439

US

–

–

3,579

Belize–12,27012,270Subtotal–

12,27015,849Since making this commitment in April 2020, Microsoft identified two leading
land protection organizations, the National Fish and Wildlife Foundation(NFWF) within the United States and The Nature Conservancy (TNC) globally,
to partner with on our land protection journey. A data-informed approach
to identify ecosystems most at risk was used, using TNC’s last chance
ecosystem framework and NFWF’s national landscape conservation framework.
Within each of the two partnerships the following organizations will hold theconservation easement/own the protected land:• The Nature Conservancy: Belize Maya Forest Trust• National Fish and Wildlife Foundation: Montana Department of Fish, Wildlife,and Parks; New Mexico Land Conservancy, Rocky Mountain Elk Foundation
for the US

1. Data for reuse or other diversion methods besides recycling for hazardous waste, and other disposal operations
besides landfilled and incineration for non-hazardous waste is currently not applicable. Reported waste data is mainly
directed for disposal offsite.
2. Incinerated category under non-hazardous includes incineration with and without energy recovery.
3. The “other” category under hazardous includes landfilled and incinerated with and without energy recovery waste.
4. Starting in FY23, reported values incorporate an updated extrapolation approach, only for non-campus workplacelocations not providing data, that more accurately reflects waste diversion practices as outlined in Section 1.9.

1. Reported funded acres in FY23 have been updated to reflect Microsoft’s final project funding distribution.

Environmental Data Fact Sheet 2024

1.6 Management’s assertion
Management of Microsoft Corporation is responsible for the completeness, accuracy, and validity of the disclosures
included in this Section 1 of the Environmental Data Fact Sheet. Management is also responsible for the collection,
quantification, and presentation of the specified information included in Section 1 of the Environmental Data Fact
Sheet and for the selection or development of the criteria, which management believes provides an objective basis
for measuring and reporting on the specified information. Management of Microsoft Corporation asserts that the
specified information included in Section 1 of the Environmental Data Fact Sheet as of, and for the fiscal year ended
June 30, 2023 (FY23) is presented in accordance with the criteria set forth in Section 1.10, Reporting criteria.

1.7 Description of the company and inventory boundary
Microsoft’s environmental sustainability data, which includes GHG emissions, energy, waste, product packaging
recyclability and single-use plastics, water, and ecosystem metrics, has been prepared following Microsoft’s
fiscal year basis as the reporting period covering the timeframe of July 1 to June 30. The Corporate, External andLegal Affairs (CELA) Sustainability team within Microsoft under the leadership of the Chief Sustainability Officer(CSO) holds the responsibility to monitor and report sustainability environmental data. For setting organizationalboundaries and for corporate reporting of GHG emissions, energy, waste, product packaging recyclability andsingle-use plastics, and water metrics in the preceding Tables 1-12, Microsoft uses the operational control approach.
This includes global wholly owned and partially owned subsidiaries over which Microsoft has management andoperational control, including Microsoft owned and leased real estate facilities and datacenters.

1.8 Information on metrics
Microsoft announced in January 2020 that we will be carbon negative by 2030 and that by 2050 we will remove
from the atmosphere an equivalent amount of all the carbon the company has emitted either directly or by ourelectricity consumption since being founded in 1975. Microsoft plans to achieve this goal by reducing Scope 3
emissions (market-based and management’s criteria) by more than half; and by reducing Scope 1 and 2 (marketbased) emissions to near zero by the middle of the decade through energy efficiency work and reaching 100%
renewable energy by 2025. The baseline year is 2020, which was the year when the announcement was made.
Microsoft has a metrics recalculation policy for historical data (including previous and base year) to ensure
consistency whenever year-over-year structural changes, methodology changes, or other accuracy improvements
are significant. Structural changes include mergers, acquisitions, and divestitures. Microsoft will begin to
include data associated from any merger and/or acquisition the year following the close of such transaction.
Divestments will be reflected in data the year when the transaction occurred. Methodology changes include
changes in a calculation methodology or new activity types for greater data granularity. Accuracy improvements
include the correction of significant errors or cumulative minor errors that together are significant and/or updates
to available supplier reported data. Footnotes under each table will highlight when specific adjustments are made.
Microsoft’s GHG inventory includes five of the seven GHGs addressed by the Kyoto Protocol—carbon dioxide (CO2),08

methane (CH4), nitrous oxide (N2O), hydrofluorocarbons (HFCs), and sulfur hexafluoride (SF6). Microsoft does not
currently use or emit perfluorocarbons (PFCs) and nitrogen trifluoride (NF3).
This carbon inventory is what is in scope of our carbon negative commitment.
The following is a more detailed list of activities included in the GHG inventory:• Scope 1 direct GHG emissions from onsite fossil fuel combustion (including natural gas, propane, fueloil, and diesel), executive air travel, ground transportation (Microsoft owned and directly leased),hydrofluorocarbon (HFC) refrigerants, and SF6 used at some facilities.
• Scope 2 indirect GHG emissions from purchased electricity, chilled water, and steam. The location-based
method is based on average emission factors for the electricity grids that provide electricity to ourdatacenters, buildings, and campuses. The market-based method includes consideration of contractual
arrangements under which Microsoft procures power from specific suppliers or sources, such as renewableenergy. In the market-based method, we also capture the impact from onsite renewable energy generation,
power purchase agreements (PPAs), the purchase of unbundled energy attribute certificates (EACs), andgreen power products.
• Scope 3 indirect GHG emissions for the following categories identified as relevant for Microsoft:◦ Category 1 – Purchased Goods & Services◦ Category 2 – Capital Goods◦ Category 3 – Fuel- and Energy-Related Activities (location-based and market-based)◦ Category 4 – Upstream Transportation (reported both under the GHG Protocol and per management’s
criteria, see Section 1.10)◦ Category 5 – Waste◦ Category 6 – Business Travel (reported both under the GHG Protocol and per management’s criteria, see
Section 1.10)◦ Category 7 – Employee Commuting◦ Category 9 – Downstream Transportation◦ Category 11 – Use of Sold Products (reported both under the GHG Protocol and per management’s
criteria, see Section 1.10)◦ Category 12 – End-of-Life of Sold Products◦ Category 13 – Downstream Leased Assets

Environmental Data Fact Sheet 2024

For carbon removal, the following Microsoft criteria is used to select carbon removal offsets that we contract:
Microsoft Criteria for High-Quality Carbon Dioxide Removal. Both third-party certified and uncertified tons arepurchased in an effort to help develop the market, and only certified tons are applied to the carbon neutrality scope(Scope 1, Scope 2 market-based, and business air travel). For the certified portion, the following validation andverification bodies have provided the certification: Voluntary Carbon Standard (VCS), American Carbon Registry(ACR), Climate Action Reserve (CAR), and California Air Resources Board (CARB). The reported carbon removal
contracted value total also includes future tons that are to be delivered in subsequent years.
Microsoft procures and uses renewable energy from onsite generation, unbundled EACs, power purchaseagreements (PPAs), and green power products. The purchases of EACs include renewable energy certificates(RECs) (Green-e certified), guarantees of origin (GO), renewable energy guarantees of origin (REGO), I-RECs,
tradable instrument for global renewables (TIGR), J-Credits, Non-Fossil Fuel Certificates (NFCs), large-scale energy
certificates (LGC), Green Electricity Certificates (GECs), and PowerPlus. In some cases for unbundled EAC purchases,
Microsoft receives the certificates after our inventory has been compiled and assured, due to the timing certificate
registry processes follow. Microsoft procures enough renewable electricity to match 100% of our global electricity
consumption. To calculate Scope 2 emissions from a market-based approach, Microsoft captures the impact acrossall renewable electricity purchases and matches that with the market where we operate, aligned with the GHG
Protocol. In the case that renewable electricity is not procured in the markets where we operate and to ensure
we maintain the 100% renewable electricity commitment, enough renewable electricity from nearby markets ispurchased. Finally, Microsoft captures the impact from onsite generation, PPAs, and green power products to
support our progress against our commitment to have 100% direct renewable electricity by 2025.
Microsoft’s water inventory includes the withdrawal, consumption, and discharge associated with assets under
our operational control. These volumes represent global enterprise-wide operations including owned andleased offices, datacenters, labs, and retail. This data supports progress tracking against current water positive
program commitments.
For waste and circularity, operational waste and product packaging recyclability and single-use plastics areincluded. The operational waste inventory includes the mass of waste generated from operations within Microsoft’s
operational control that are landfilled, incinerated, recycled, reused, and composted for both non-hazardous andhazardous categories, for both owned and leased facilities. This waste inventory supports progress tracking against
the commitment of diverting 90% of operational waste at datacenters and campuses. Currently the waste inventory
does not include waste from construction and deconstruction activities.

09

For product packaging, both packaging recyclability and single-use plastics metrics consider all hardware packaging(retail and commercial) and consumer software packaging of the products produced and sold during the reportingyear. Similarly, these metrics support our product packaging-related commitments to make fully recyclable productpackaging by 2030, and to eliminate single-use plastic in packaging by 2025. The calculations exclude impact frominks, glues, coatings, and label liner material that is removed before a label is applied.
Reported data for ecosystems includes the total area of land that has been funded and protected based on thepresented definition in Table 1.10 for reporting criteria. Microsoft’s land protection commitment was established in
FY20. Reported data represents progress through the end of FY23.
According to Microsoft’s structural changes policy previously described in the introduction section, FY23 data
across metrics now incorporates impact from the Nuance acquisition which was previously completed in March
2022. Additional details are included as needed in the table footnotes to highlight any prior year adjustments.
Structural changes items are part of Microsoft’s continuous data improvement activities and will be included andhighlighted accordingly in the relevant reporting cycle.

Environmental Data Fact Sheet 2024

1.9 Methodology and emission factors
Carbon - Scope 1 and 2
Primary data is used to calculate emissions for both Scope 1 and 2 emissions. Estimates are used where primarydata is not available. Depending on the type of site, the estimation methodology uses capacity (MW) or floorspace
based coefficients to extrapolate emissions for those locations where primary data is unavailable. Activity datais collected internally and stored in an internally developed data platform which then applies the corresponding
emission factors to calculate emissions. Microsoft uses the 100-year IPCC Fourth Assessment when it comes toapplying global warming potential values.
Scope and source

Emission factors source

Scope 1 (all fuels)

EPA Emission Factors Hub. March 2018.

Scope 2
Electricity (US)Year 2021 eGRID Subregion Emission Factors: eGRID 2021, January 2023.

Scope 2
Electricity (international
unless otherwise sourced)

IEA (2022), Emission Factors

Scope 2
Electricity (Australia)

Year 2022 factors from “Table 1: Indirect (Scope 2 and Scope 3) emission
factors from consumption of purchased or acquired electricity: Location based
approach”, Australian National Greenhouse Accounts Factors, August 2023.

Scope 2
Electricity (Brazil)

Year 2022 factors from the Brazilian Ministry of Science, Technology,
Innovation and Communication: Fator médio - Inventários corporativos.

Scope 2
Electricity (Canada)

National inventory report 1990-2021. Annex 13. Year 2021 factors. From April
2023 release.

Scope 2
Electricity (UK)2023 Government Greenhouse Gas Conversion Factors for Company
Reporting: Methodology Paper for Conversion Factors. Year 2021 factors from
June 2023 release.

Emission factors presented in the preceding table apply to current reporting year and are used for location-based
accounting. For market-based accounting, Microsoft uses a zero-emission factor for procured renewable electricity.
In the locations where Microsoft did not procure renewable electricity, utility-based and residual emission factors
were unavailable; therefore we used the average grid factors presented previously.

10

Carbon - Scope 3
Microsoft calculates and reports Scope 3 emissions for all relevant categories. The following table summarizes
which categories are relevant and a description of the methodologies and emission factors used.

Scope
3 category
Purchased
Goods andServices

Emissions calculation methodology
This category includes emissions from upstream purchasing of goods andservices, including direct and indirect goods. Microsoft has been using
an ISO 14040/ISO 14044 compliant life cycle assessment (LCA) approachfor many years to track the emissions associated with its devices. In FY23,
Microsoft started using its LCAs to calculate the portion of emissions
associated with the manufacture of devices Microsoft sold during thereporting year including Xbox devices, Surface devices, HoloLens,
keyboards, mice, and other peripherals. Microsoft utilized Makersite andinternal software engineering teams in order to automate and scale themodeling of complex electronic products. To ensure a more supply chain
specific accounting process, the system analyzes the bill of materials
and material composition from full material declarations collected fromsuppliers, resulting in LCA-based emissions that have increased accuracy,transparency, and representativeness. GWPs are from the IPCC Fourth
Assessment Report (AR4), 100-year average. For the rest of the emissions,
Microsoft requests carbon emissions data from its suppliers and uses
their responses to determine Scope 1, Scope 2, and upstream Scope 3
emission factors (mtCO2e/$ revenue). The latest available responses areused, so this report’s inventory considers 2023 submissions (that is, 2022
data). Microsoft estimates emissions for suppliers who submitted data by
multiplying their response-derived factor by the annual spend with the
supplier. All other spend is mapped to corresponding industry sectors
and then multiplied by cradle-to-gate emission factors by sector from UK
Defra’s “UK Defra, Table 13 — Indirect emissions from the supply chain.
March 2014”—updated per the latest inflation and currency conversion
rates. Corporate-wide expense data for all company divisions is obtained
from the finance department. Activities already included in Scope 1 andScope 2 (such as electricity purchases) and other Scope 3 categories(such as capital goods) were removed to prevent double counting.
Global warming potentials (GWP) values are derived from the underlying
supplier responses and Defra data sources.

Percentageof emissions
calculatedusing supplier
data

51%

Environmental Data Fact Sheet 2024

Scope
3 category

Emissions calculation methodology

11

Percentageof emissions
calculatedusing supplier
data

Capital Goods

This category includes emissions from upstream purchasing of capital
goods, including server equipment and other long-term assets.
Microsoft requests carbon emissions data from its suppliers and uses
their responses to determine Scope 1, Scope 2, and upstream Scope 3
emission factors (tCO2e/$ revenue). The latest available responses areused, so this report’s inventory considers 2023 submissions (that is, 2022
data). Microsoft estimates emissions for suppliers who submitted data by
multiplying their response-derived factor by the annual spend with the
supplier. All other spend is mapped to corresponding industry sectors
and then multiplied by cradle-to-gate emission factors by sector fromUK Defra’s "UK Defra, Table 13 – Indirect emissions from the supply chain.
March 2014"—updated per the latest inflation and currency conversion
rates. Corporate-wide expense data for all company divisions is obtained
from the finance department. Activities already included in Scope 1 andScope 2 (such as electricity purchases) and other Scope 3 categories(such as purchased goods and services) were removed to prevent double
counting. GWP values are derived from the underlying supplier responses
and Defra data sources.

70%

Fuel- andEnergyRelated
Activities (notincluded in
Scope 1 or 2)

Starting in FY23, Microsoft reports this category using a market-based
approach only, which has been the approach used to track progressagainst our carbon negative commitment. Fuel- and energy-related
activities (not included in Scope 1 or 2) include three emission sources.
First, upstream emissions of purchased electricity were calculated bymultiplying electricity use by emission factors from life cycle analysis tools
for the United States and UK Defra 2015 Guidelines for non-US countries.
When calculating the market-based approach and including the impact
from purchased renewable electricity, the upstream emissions associatedwith fuel are zero. Second, fuel consumption was multiplied by emission
factors from the GREET and Ecoinvent life cycle analysis tools. And third,transmission and distribution (T&D) losses (by energy use type) were
multiplied by loss percentages from the EPA’s eGRID2020 database for theUnited States and emission factors from IEA (2022) emission factors forother countries. GWPs are from the IPCC Fourth Assessment Report (AR4),100-year average.

96%

Scope
3 category

Emissions calculation methodology

Percentageof emissions
calculatedusing supplier
data

UpstreamTransportation
andDistribution

This category includes emissions from upstream transportation of goods,
including all transportation of goods that Microsoft finances. In FY23,
Microsoft started calculating emissions for this category following the
Global Logistics Emissions Council (GLEC) Framework using data inputs
from Microsoft’s fourth-party logistics service provider, TMC. Our Devices
business group applies this calculation considering the shipment weight,
distance traveled, and the corresponding well-to-wheel (WTW) fuelemission factor appropriate for each mode or vehicle type. In addition
to these inputs, our Cloud business group uses the EcoTransIT tool
which identifies the mode of transportation on each leg by breaking
down the route through milestones, and incorporates more granularlocation data, equipment data, and WTW emissions factors. For the
rest of the emissions, Microsoft requests carbon emissions data fromits suppliers and uses their responses to determine Scope 1, Scope 2,
and upstream Scope 3 emission factors (mtCO2e/$ revenue). The latest
available responses are used, so this report’s inventory considers 2023
submissions (that is, 2022 data). Microsoft estimates emissions for
suppliers who submitted data by multiplying their response-derived
factor by the annual spend with the supplier. All other spend is mapped
to corresponding industry sectors and then multiplied by cradle-togate emission factors by sector from UK Defra’s “UK Defra, Table 13— Indirect emissions from the supply chain. March 2014”—updated
per the latest inflation and currency conversion rates. Corporate-wide
expense data for all company divisions is obtained from the financedepartment. Spend data associated with our upstream transportation anddistribution activities is then isolated within the corporate spend report.
GWP values are derived from the underlying supplier responses and Defra
data sources.

97%

Waste
Generated in
Operations

The waste figure represents emissions from waste disposed via landfilling,incineration, recycling, and compost. Emissions from waste are calculatedusing methodologies and emission factors from the EPA’s Waste
Reduction Model (WARM), version 15. This model uses waste mass as thedata input and bases its emissions calculations on a life cycle analysis,
including emissions from the long-term decomposition of waste in alandfill or from upstream sources/sinks. GWPs are from the IPCC Fourth
Assessment Report (AR4), 100-year average.

64%

Environmental Data Fact Sheet 2024

Scope
3 category
Business Travel

Emissions calculation methodology
This category includes emissions from commercial air travel, hotel nightstays, rail travel, reimbursed mileage, rental cars, and taxi/rideshares.
For commercial air and rail travel, Microsoft Corporate Travel provides
flight/ride-level airport codes and cabin class data. The airport/rail
station codes are used to calculate distances to determine whether theflights/rides were short, medium, or long haul. Using the distance-based
method, flight distances and cabin class are used to calculate CO2eemissions, using the appropriate tank-to-wake emission factors from 2022
Government GHG Conversion Factors for Company Reporting. For hotelnight stays, Microsoft’s preferred hotel vendors provided emissions
per hotel night stay coefficients. For other hotel chains, emissions were
estimated based on nights stayed and the emission factors from the
EPA’s Greenhouse Gas Inventory Guidance: Indirect Emissions from Eventsand Conferences (Dec 2018). For rental cars, mileage, fuel, and emission
data was provided from each rental car company. For taxi/rideshare andreimbursed mileage, emissions were estimated based on spend using
emission factors from EPA Emission Factor Hub. March 2018. GWPs arefrom the IPCC Fourth Assessment Report (AR4), 100-year average.

12

Percentageof emissions
calculatedusing supplier
data

91%

Scope
3 category
Sustainable
Aviation
Fuel (SAF)(management’s
criteria)

Emissions calculation methodology
This category includes the emissions associated with Category 4 –Upstream Transportation and Distribution with SAFc and Category 6 –Business Travel with SAFc. For Scope 3 Category 4 emissions with SAFc,
the emissions reductions from the volume of SAF associated with SAFc
purchased for the reporting year is applied against air cargo emissions
calculated using the previously stated methodology for Category
4 – Upstream Transportation and Distribution to derive the reported
annual emissions figure. For Scope 3 Category 6 emissions with SAFc,
the emissions reductions from the volume of SAF associated with SAFc
purchased for the reporting year is applied against air travel emissions
calculated using the previously stated methodology for Category 6 –Business Travel, inclusive of well-to-tank and tank-to-wake emissions,using the appropriate factors from Defra’s 2022 Government GHG
Conversion Factors for Company Reporting to derive the reported annual
emissions figure. The total emissions reductions from the volume of SAF
associated with SAFc purchased for the reporting year are allocatedbetween Category 4 and Category 6 based on an internal determination
by management on where the SAFc should be applied. Management’s
methodology for reporting SAFc in these categories was informed by theapproach outlined in the World Economic Forum Sustainable Aviation
Fuel Certificate Emissions Accounting and Reporting Guidelines (WEF
Accounting and Reporting Guidelines). This guideline informed both theapproach for calculating and reporting the well-to-wake emissions as well
as how to attribute the benefits associated with SAFc for corporate travel
and air freight shipments. The SAF certificates we purchase are required
to include details about the SAF characteristics, origin and chain-ofcustody, and third-party certification. SAF certificates, which are certified
prior to delivery to Microsoft, must be certified by an independent
third party that they align with the requirements of an internationallyrecognized sustainability certification scheme such as the International
Sustainability & Carbon Certification scheme or the Roundtable on
Sustainable Biomaterials including batch number and fuel/material type.
These SAFc requirements were also informed by the WEF Accounting andReporting Guidelines.

Percentageof emissions
calculatedusing supplier
data

100%

Environmental Data Fact Sheet 2024

Scope
3 category
EmployeeCommuting

Emissions calculation methodology
This category captures emissions from commuting by all employees
and contractors that work in Microsoft buildings. Microsoft conducteda survey in 2023 to capture detailed commuting habits from employees
and vendors at our Puget Sound campus, representing about 38% of
global Microsoft headcount. The survey is typically conducted annually,
and the results were scaled considering employee attendance records
to estimate global commuting emissions for Microsoft. Carbon dioxide
emission rates for passenger vehicles (single occupancy vehicle (SOV) andcarpool) are based on fuel consumption and miles traveled. A weighted
average fuel economy using the 2012 EPA Fuel Economy Trends Report
1975–2012 was derived, which provides combined fuel economy
for cars and trucks by year, and a set of car and truck age fractions
provided by the Puget Sound Regional Council. This data was used todevelop a weighted average fuel economy for the Puget Sound area.
Emission factors are derived from the Inventory of US. Greenhouse Gas
Emissions and Sinks: 1990–2010, Annex 2 (Methodology for estimating
CO2 emissions from fossil fuel combustion). Carbon dioxide rates perpassenger mile are based on Federal Transit Administration, 2010 (Public
Transportation’s Role in Responding to Climate Change, US DOT, Federal
Transit Administration, January 2010). GWPs are from the IPCC Fourth
Assessment Report (AR4), 100-year average.
As nearly all Microsoft employees worked from home during the
COVID-19 pandemic, FY20 was the first year to include emission impacts
from telework, and we have continued to include them in the subsequent
years. Telework energy consumption is assumed to include workstation/plug-load energy usage, additional lighting, and household cooling/heating consumption. One laptop, two monitors, and three lightbulbs are
assumed for each employee; other assumptions include 8 work hours/
day and 250 days/year using the devices. Office/workspace floor area andcooling/heating intensity are assumed based on EIA’s 2015 Residential
Energy Consumption Survey (RECS) data. From these assumptions, acarbon emission intensity per employee is calculated, and total emissions
are calculated by multiplying the intensity by number of employees
working from home.

13

Percentageof emissions
calculatedusing supplier
data

Scope
3 category

Emissions calculation methodology

17%

Upstream
Leased Assets

Not relevant. Microsoft includes leased assets in our Scope 1 and Scope 2
emissions reporting boundary.

–Downstream
Transportation
andDistribution

Included in this category are the emissions from transporting andwarehousing of devices Microsoft sold (including Xbox devices, Surface
devices, HoloLens, keyboards, mice, and other peripherals) from retail
distribution centers to retailers and between retail outlets and customers.
Calculations are based on internal Microsoft sales data and use standard
assumptions of distance between retailers and their distribution centers
and warehouse floorspace from an MWPVL International analysis
of Walmart’s distribution center network. Assumptions about theenergy intensity of warehouses come from the US Energy Information
Administration (EIA)’s Commercial Buildings Energy Consumption Survey(2012). All transportation data is kept consistent with the Global Logistics
Emissions Council Framework for Logistics Emissions Accounting andReporting, Version 2.0. GWPs are from the IPCC Fourth Assessment
Report (AR4), 100-year average.

0%

Processing of
Sold Products

Not relevant. Microsoft did not have any physical intermediate productsin the years reported.

–

Use of Sold
Products

Included in this category is the lifetime electricity use of devices Microsoft
sold including Xbox devices, Surface devices, HoloLens, keyboards, mice,and other peripherals. Lifetime electricity use per device is calculated
based on standard product-use assumptions as included in our ISO
14040– and ISO 14044–compliant life cycle analyses. Calculations include
energy use assumptions that are derived from various guidance
documents, studies, or telemetry data. Assumptions on total lifetime
expected use (years) are used. Sales geography for the products soldis used to determine the electricity emission factor used to calculate
emissions. Emissions from third-party devices running Microsoft software
are currently outside of the scope of our carbon commitments andtherefore not included. GWPs are from the IPCC Fourth Assessment
Report (AR4), 100-year average.

0%

Percentageof emissions
calculatedusing supplier
data

Environmental Data Fact Sheet 2024

Scope
3 category
Use of Sold
Products(management’s
criteria)

End of Life
Treatment of
Sold Products

14

Percentageof emissions
calculatedusing supplier
data

Scope
3 category

This category includes the emissions of all Surface and Xbox devices
active during the reporting year, using telemetry-based methodology
to account for their electricity usage. Telemetry-based measurements
are used in addition to telemetry informed extrapolations to produce
regional electricity and emissions associated to the use of devices inscope. For Xbox devices, telemetry data is gathered for all units still in
use in relation to console mode, which is then multiplied by average
power coefficients to calculate electricity use. For Surface devices, energy
telemetry data is gathered from a representative sample of devices
that are grouped based on the device model and location and then the
average energy per device sampled is extrapolated to the respective
full daily active device population group based on a rolling seven-day
average. Emissions values from HoloLens, keyboards, mice, and otherperipherals currently fall under our significance threshold and are notincluded. Emissions from third-party devices running Microsoft software
are currently outside of the scope of our carbon commitments andtherefore not included. Electricity usage is estimated by country andcountry average emission factors from the same sources highlighted for
Scope 2 are used to estimate emissions. GWPs are from the IPCC Fourth
Assessment Report (AR4), 100-year average.

0%

Downstream
Leased Assets

Emissions associated with sublets are calculated using the intensities
derived from data collected for the primary leased space (for example,
kilowatt-hours/square foot (kWh/sf)) and prorated for the square
footage of the sublet space. In this way, it is assumed that the emissions
intensities of the leased spaces are the same as the overall buildings inwhich they reside. Estimated refrigerants are calculated using the same
methodology and intensity as used to calculate refrigerant intensities
for assets occupied by Microsoft. Electricity emission factors used arethose appropriate to each location, as utilized in our Scope 1 and Scope
2 location-based inventory. GWPs are from the IPCC Fourth Assessment
Report (AR4), 100-year average.

85%

Franchises

Not relevant. Microsoft did not operate franchises in the years reported.

–

Investments

Not relevant for reported years. Joint ventures, actively managed
investments, and direct equity investments totaled less than 2% of
Microsoft’s market capitalization at the end of the reporting period.
Microsoft has not engaged in the long-term financing of projects
and the proceeds for each debt issuance have been for general
corporate purposes.

–

Included in this category is the end-of-life treatment of devices Microsoft
sold during the reporting year including Xbox devices, Surface devices,
HoloLens, keyboards, mice, and other peripherals. Microsoft has beenusing an ISO 14040/ISO 14044 compliant life cycle assessment (LCA)
approach for many years to track the end-of-life emissions for its devices.
To generate an estimate for this category, the model assumes materials
from devices are recycled, landfilled, or incinerated at the end of theiruseful life using material specific European collection and disposition rates
for electronic devices. In FY23, Microsoft revised its LCA process to use
Makersite and internal software engineering teams in order to automate
and scale the modeling of complex electronic products. GWPs are fromthe IPCC Fourth Assessment Report (AR4), 100-year average.

0%

Emissions calculation methodology

Emissions calculation methodology

Percentageof emissions
calculatedusing supplier
data

Environmental Data Fact Sheet 2024

EnergyAs part of our carbon negative goal, Microsoft set a target to procure enough direct renewable electricity tocover 100% of our electricity usage by 2025, meaning that we will have power purchase agreements (PPAs) orother long-term contracts for green power products for 100% of carbon-emitting electricity consumed by all
our datacenters, buildings, and campuses. To calculate this percentage of direct renewable electricity, Microsoft
developed a methodology which considers the total direct renewable electricity consumption divided by the total
electricity consumption. The total direct renewable electricity consumption is the sum of renewable electricity theentity directly produced, renewable electricity purchased via renewable PPAs and/or green power products, and therenewable portion of the electricity grid mix. Primary data is used to represent the contracted renewable electricity
based on reports produced and submitted by the contracted assets in our portfolio. The renewable portion of theelectricity grid mix is the amount of renewable electricity that is on the power grid in the region of the Microsoft
facility that can be claimed as going into the electricity that our operations consume. The renewable portion of
the electricity grid mix used in the calculation is based on publicly available data for regions in which we havedetermined the region’s grid mix has defensible claims, which is defined as regions where either (1) EACs are retiredby a utility or government entity on behalf of all utility/grid ratepayers, or (2) no EAC or customer-specific claims
exist. For geographies where publicly available data is incomplete or nonexistent, we apply assumptions based on
historical data or trends, and/or assume zero renewable electricity by default in their grid mix. Microsoft uses aninternally developed renewable grid mix policy to support and govern the process for determining the renewableenergy grid mix that can be counted toward our commitment. To calculate our percentage of direct renewableelectricity, we take the total direct renewable electricity consumption, divide it by our total electricity consumption,and multiply by 100.
Additionally, as part of our carbon neutral (as defined in Table 5) target, Microsoft plans to achieve 100% renewableelectricity each year through a combination of considering not only direct renewable energy but also thepurchase of unbundled EACs. For this metric, the renewable portion of the electricity grid mix is excluded fromthe calculation. The unbundled EACs included are listed in Section 1.8 of this fact sheet. To calculate the percent of
renewable electricity, we add up the various forms of renewable electricity and then divide it by Microsoft’s total
electricity consumption, and multiply by 100. Standard conversion factors are used for all energy metrics.

Water
Primary data is used to calculate water withdrawal, discharge, and consumption where Microsoft operates.
Estimates are used where primary data is not available. Water withdrawals are based on data from utility bills
from our largest sites and, in some cases, estimations. A water withdrawal estimation methodology was internallydeveloped for sites where primary data is unavailable that considers square footage, electricity consumption,and datacenter cooling technology type. Where discharges and consumption are not metered, amounts are
estimated annually as part of the global water inventory aggregation process. Most of our sites do not currently
have discharge meters. For office buildings without discharge meters, water consumption is assumed to be 10%of withdrawals unless they have landscaping that requires irrigation. For datacenters, the cooling technology

15

type is used to drive the estimation. It is estimated that discharge equals the difference between withdrawals
and consumption.
Microsoft continues to work on improvements for water data collection, including data on the sources of our water
withdrawals. This will allow us to know if water is coming directly from freshwater sources (groundwater and surface
water), or from alternative water sources (reclaimed water procured from a water utility or harvested rainwater).
Knowing the source of water withdrawals helps us incentivize the use of alternative water sources through ourreplenishment and reduction targets.

Waste and circularity
Primary data is used to calculate waste generation where Microsoft operates. Operational waste mass (including
e-waste) is based on data from invoices and/or vendor and third-party reports. In the absence of actual data, there
is an extrapolation methodology. Depending on the type of site, the methodology uses capacity (MW) based
coefficients by region or attendance to extrapolate waste for those locations where primary data is unavailable.
The extrapolation excludes e-waste, and all extrapolated waste is assumed to be landfilled in cases where thedisposal or diversion method is unknown. Starting in FY23, we have updated the extrapolation approach only for
non-campus workplace locations not providing data in our portfolio. Under this approach we apply an attendancebased global operational waste mass coefficient, as well as recycling and compost diversion rates from applicable
reported workplace data (derived from actuals). Since most of the non-campus workplace sites are leased spaces
within a larger building, obtaining actual waste data can be challenging. This updated approach represents an
improvement that more accurately reflects waste diversion practices that are in place at non-campus workplace sites.
Product packaging recyclability and the single-use plastics metrics are used to track our progress against our zerowaste program commitments. The design of all Microsoft product packaging are to be 100% recyclable in OECD
(Organization for Economic Cooperation and Development) countries by 2030; and contain 0% single-use plastic
by 2025. In both cases, primary data is used from the bill of materials associated to the product packaging units
in scope. For product packaging recyclability, at the product packaging unit level, an end of life (EOL) scoring is
assigned to each packaging component based on publicly available information regarding the existing recovery
infrastructure in the OECD markets. Currently our methodology is primarily based on publicly available informationfrom the United States which is one of our biggest markets. Scores indicate relative acceptance of materials torecycling, and range from 1 to 5, where a score of 1 means up to 20% recyclable (not generally accepted) and ascore of 5 is 100% recyclable (widely accepted to be recycled). A recyclability percentage is computed for eachpackaging unit by adding the product of each component’s weight and EOL scores and dividing by the maximum
score value of 5. The reported enterprise-wide level metric is the simple average of all product packaging
recyclability percentages in scope. For the single-use plastics metric, the percentage by weight of single-use plastics
is calculated for each packaging unit. The enterprise-wide level metric is the simple average of all single-use plastics
percentages for each product packaging in scope.

Environmental Data Fact Sheet 2024

1.10 Reporting criteria
The following summary table defines the criteria for each specified metric included in Section 1 of the Environmental
Data Fact Sheet. Management is responsible for the selection of the criteria or the development of the criteria(“management’s criteria”), which management believes provide an objective basis for measuring and reporting on
the specified information referenced in this table.
Microsoft has reported the information cited in this GRI content index for the fiscal year ended June 30, 2023 (FY23)
with reference to the GRI Standards using GRI 1: Foundation 2021.

16

Area
CarbonSpecified
Information

Criteria

Tables

The statement of
GHG emissions

Greenhouse Gas Protocol: A Corporate Accounting andReporting Standard (Revised Edition) and The Greenhouse
Gas Protocol: Corporate Value Chain (Scope 3) Accounting
and Reporting Standard published by the World
Resources Institute/World Business Council for Sustainable
Development (collectively the “GHG Protocol”).

1A, 1B,2, 3,
4, 5

Scope 3 Category
11 — Use of
Sold Products(management’s
criteria)

Management’s criteria:

1B

Use of sold products’ emissions in the reporting year in
metric tons of CO2e reported as:a. Gross emissions.
b. Gross emissions, net of renewable electricity.
Gross emissions is calculated by multiplying a) the directuse-phase energy, which is derived from emissions
gathered by the Company using telemetry data andcalculations used to measure energy usage from Xbox
consoles and Surface devices sold by Microsoft at any
point in time since product launch and which are still inuse by end users during the fiscal year being reported on
and b) location-based emissions factors.
For purposes of this metric, renewable electricity isdefined as the purchase of contractual instruments thatmeet the “quality criteria” according to table 7.1 in the GHG
Protocol Scope 2 Guidance.
Microsoft shall disclose:a. A description of the types and sources of data,
including telemetry activity data, emission factors,
and GWP (global warming potentials) values, used
to calculate emissions, and a description of the data
quality of reported emissions data.
b. A description of the methodologies, allocation
methods, and assumptions used to calculate
Scope 3 emissions and any exclusions.

Environmental Data Fact Sheet 2024

Area
CarbonSpecified
Information
Sustainable
Aviation Fuel(management’s
criteria)

17

Criteria
Management’s criteria:
1. Scope 3 Category 4 – Upstream Transportation &Distribution with SAFc in the reporting year in metrictons of CO2e reported as:
Category 4 with emissions reduction from SAFc iscalculated as total Category 4 life cycle emissions
as disclosed under “The Greenhouse Gas Protocol:
Corporate Value Chain (Scope 3) Accounting andReporting Standard” less the emissions reduction
benefit from purchased SAF certificates applied only to
air cargo emissions.
2. Scope 3 Category 6 – Business Travel with SAFc in thereporting year in metric tons of CO2e reported as:
Category 6 with emissions reduction from SAFc iscalculated as the sum of the total Category 6 emissions
as disclosed under “The Greenhouse Gas Protocol:
Corporate Value Chain (Scope 3) Accounting andReporting Standard” and the well-to-tank emissions
associated only to air travel, less the emission reduction
benefit impact from purchased SAF certificates applied
only to air travel emissions.
SAF certificates are required to include details about the
SAF characteristics, origin and chain-of-custody, and thirdparty certification. SAF certificates, which are certified byan independent third party prior to delivery to Microsoft,must align with the requirements of an internationallyrecognized sustainability certification scheme such as theInternational Sustainability & Carbon Certification schemeor the Roundtable on Sustainable Biomaterials includingbatch number and fuel/material type.
Microsoft shall disclose:
A description of the methodologies, allocation methods,
and assumptions used to calculate Scope 3 Category 4
with SAFc emissions and Scope 3 Category 6 with SAFc
emissions and any exclusions.

TablesArea

1B

EnergySpecified
Information

Criteria

TablesEnergyconsumption
within theorganization“Disclosure 302-1: Energy consumption within theorganization” from GRI 302: Energy 2016

6,7

Energy intensity“Disclosure 302-3: Energy intensity” from GRI 302:
Energy 20168

1. Renewableelectricity

Management’s criteria:

6,7

2. Direct renewableelectricity

The Company shall disclose:
1. Percentage of renewable electricity
a. Total renewable electricity consumption.
Total renewable electricity consumption is
the sum of renewable electricity the entity directly
produced, renewable electricity purchased via
renewable power purchase agreement (PPAs) or
green power products, and renewable electricity
purchased for which energy attribute certificates(EACs) are paired with grid electricity; but excludes
the renewable portion of the electricity grid mix.
b. Percentage of renewable electricity. The percentageof renewable electricity shall be calculated as total
renewable electricity consumption divided by total
electricity consumption.
2. Percentage of direct renewable electricity
The percentage of direct renewable electricity
shall be calculated as total direct renewableelectricity consumption, defined as the sum of
renewable electricity the entity directly produced,
renewable electricity purchased via renewable
PPAs or green power products, and the renewableportion of the electricity grid mix, divided by total
electricity consumption.
◦ Total electricity consumption is the same as
disclosed in “Disclosure 302-1(c)(i) Electricity
consumption” from the GRI Standard: 302
Energy 2016.

Environmental Data Fact Sheet 2024

Area
EnergySpecified
Information
2. Direct renewableelectricity(continued)

18

Criteria◦ Renewable electricity is defined as electricity thatcomes from sources that are replenished at a rate
greater than or equal to their rate of depletion, suchas geothermal, wind, solar, hydro, and biomass.
◦ Renewable PPAs are renewable electricity Microsoft
purchased, if purchased through a renewable PPA
that explicitly includes EACs (RECs and GOs).
◦ Green power products are Green-e Energy Certified
utility or supplier programs, or other green power
products that explicitly include EACs.
◦ For any renewable electricity directly produced andgenerated onsite, any EACs must be retained (thatis, not sold) and retired or cancelled on behalf ofMicrosoft in order for Microsoft to claim them as
renewable energy.
◦ For renewable PPAs and green power products,
the agreement must explicitly include and convey
that EACs be retained or replaced and retiredor cancelled on behalf of Microsoft in order for
Microsoft to claim them as renewable electricity.
◦ The renewable portion of the electricity grid mix isthe portion that is outside of the control or influenceof Microsoft.
◦ The renewable portion of the electricity grid mix
used in the calculation is based on publicly available
data in regions in which we have determined theregion’s grid mix has defensible claims which isdefined as regions where either (1) EACs are retiredby a utility or government entity on behalf of all
utility/grid ratepayers, or (2) no EAC or customerspecific claims exist. Microsoft shall report a
description of the methodologies and assumptions
used to calculate grid mix of renewable electricity.

TablesArea

Specified
Information

6.7

Water

Waste &
Circularity

Criteria

TablesWater withdrawal“Disclosure 303-3: Water withdrawal” from GRI 303: Water
and Effluents 2018

9

Water discharge“Disclosure 303-4: Water discharge” from GRI 303:
Water and Effluents 2018

9

Water consumption“Disclosure 303-5: Water consumption” from GRI 303:
Water and Effluents 2018

9

Waste generated“Disclosure 306-3: Waste generated” from the GRI 306:
Waste 2020

10

Waste diverted
from disposal“Disclosure 306-4: Waste diverted from disposal” from the
GRI 306: Waste 2020

10

Waste directed todisposal“Disclosure 306-5: Waste directed to disposal” from the
GRI 306: Waste 2020

10

Percentage of
product packaging
recyclability

Management’s criteria:

11

The Company shall disclose a percentage of productpackaging recyclability for the packaging of products
available to be sold during the fiscal year.
The percentage of product packaging recyclability is anenterprise-wide average, where each product packaging
unit’s percent recyclability is weighted equally.
Each product type sold by the Company has a productpackaging unit percent recyclability.
Each product packaging unit’s percent recyclability is
calculated by dividing a) the sum of the product of eachindividual component’s weight and EOL scores, by b) the
maximum EOL score of 5.
EOL scores are assigned to each component of a
packaging unit based on publicly available information
regarding the relative acceptance of materials torecycling based on existing recovery infrastructure
data. Scores range from 1 to 5, where 1 means
up to 20% recyclability acceptance and 5 is 100%
recyclability acceptance.
Microsoft shall report a description of data sources andassumptions used to calculate the metric.

Environmental Data Fact Sheet 2024

Area
Waste &
Circularity

Specified
Information
Percentage ofsingle-use plastics(SUP) in productpackaging

19

Criteria

TablesArea

Specified
Information

Criteria

TablesManagement’s criteria:

11

Ecosystems

Land protection

Management’s criteria:

12

The Company shall disclose a percentage of SUP in
product packaging by weight used in the packaging ofproducts available to be sold during the fiscal year.
Each product type sold by the Company has a packaging
unit SUP percentage. Each packaging unit’s SUP
percentage is calculated by dividing its weight of SUP by
its total weight.
The percentage of SUP in product packaging reported isan enterprise-wide average, where each packaging unit’s
SUP percentage is weighted equally.
SUP is defined as plastic items designed to be used onceby the consumer before they are disposed.
Microsoft shall report a description of data sources used
to calculate the metric.

The Company shall disclose:a. The total size in acres, as well as by country location of
all funded land as of the fiscal year ended.
b. The total size in acres, as well as by country location of
all protected land as of the fiscal year ended.
c. A description of the agreements with the third parties
related to funded land.
Funded land is defined as land for which the Company
has entered into agreements and made monetarycontributions to third parties to begin the process ofdesignating the land as protected land (that is, the legal
status as protected land is not obtained yet).
Protected land is defined as funded land that has become
legally designated as being permanently protected bygovernment regulation.
Total size in acres is calculated as the sum of Microsoft’s
total monetary contribution amount for each executed
agreement divided by the cost per acre as determinedby the third-party organization within each executed
agreement. These amounts are net of overhead costs.

Environmental Data Fact Sheet 2024

1.11 Independent accountant’s review report

20

Deloitte & Touche LLP
1015 Second Avenue Suite 500
Seattle, WA 98104-1126
USA

To the Board of Directors of Microsoft Corporation
We have reviewed management of Microsoft Corporation’s (the “Company”) assertion that the specified information included in Section 1 of the 2023 Environmental Data Fact Sheet (“Fact Sheet”) as of and for the fiscal year ended
June 30, 2023 is presented in accordance with the criteria set forth in Section 1.10, Reporting criteria in the Fact Sheet. The Company’s management is responsible for its assertion. Our responsibility is to express a conclusion on
management’s assertion based on our review.
Our review was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants (AICPA) in AT-C Section 105, Concepts Common to All Attestation Engagements, and AT-C Section
210, Review Engagements. Those standards require that we plan and perform the review to obtain limited assurance about whether any material modifications should be made to management’s assertion in order for it to be fairly stated.
The procedures performed in a review vary in nature and timing from and are substantially less in extent than, an examination, the objective of which is to obtain reasonable assurance about whether management’s assertion is fairly
stated, in all material respects, in order to express an opinion. Accordingly, we do not express such an opinion. Because of the limited nature of the engagement, the level of assurance obtained in a review is substantially lower than theassurance that would have been obtained had an examination been performed. We believe that the review evidence obtained is sufficient and appropriate to provide a reasonable basis for our conclusion.

We are required to be independent and to meet our other ethical responsibilities in accordance with relevant ethical requirements in accordance with the AICPA Code of Professional Conduct. We applied the Statements on Quality
Control Standards established by the AICPA and, accordingly, maintain a comprehensive system of quality control.
The procedures we performed were based on our professional judgment. In performing our review, we performed analytical procedures, inquiries, and other procedures as we considered necessary in the circumstances. For a selectionof the specified information included in the Fact Sheet, we performed tests of mathematical accuracy of computations, compared the specified information to underlying records, or observed the data collection process.
The preparation of the specified information included in the Fact Sheet requires management to establish and interpret the criteria, make determinations as to the relevancy of information to be included, and make estimates andassumptions that affect the reported information. Measurement of certain amounts includes estimates and assumptions that are subject to substantial inherent measurement uncertainty, including for example, the accuracy andprecision of conversion factors or estimation methodologies used by management. Obtaining sufficient appropriate review evidence to support our conclusion does not reduce the inherent uncertainty in the specified information
included in the Fact Sheet. The selection by management of different but acceptable measurement methods, input data, or assumptions, may have resulted in materially different amounts for the specified information being reported.

Information outside of the specified information included in Section 1 of the 2023 Environmental Data Fact Sheet was not subject to our review and, accordingly, we do not express a conclusion or any form of assurance on suchinformation. Further, any information relating to: i) periods prior to the year-ended June 30, 2023 or ii) information relating to forward looking statements, targets, goals, and progress against goals, was not subject to our review and,accordingly, we do not express a conclusion or any form of assurance on such information.
Based on our review, we are not aware of any material modifications that should be made to management of Microsoft Corporation’s assertion that the specified information included in Section 1 of the 2023 Environmental Data Fact
Sheet as of and for the fiscal year ended June 30, 2023 is presented in accordance with the criteria set forth in Section 1.10, Reporting criteria in the Fact Sheet, in order for it to be fairly stated.

May 15, 2024

Environmental Data Fact Sheet 2024

Section 2:
Additional environmental metrics

21

Table 13 – Other emissions (metric tons)
NOx emissions

FY20

FY21

FY22

FY23

202

284

259

273

SOx emissions

12

18

16

20

VOC emissions

170

248

221

232

PM emissions

8

11

10

10

CO emissions

1,584

2,392

2,074

2,148

0

0

0

0

FY20

FY21

FY22

FY23

Total electricity consumed

10,770,714

13,621,517

18,153,454

23,567,502

Asia

1,376,247

1,686,032

2,629,500

3,580,261

Europe, Middle East, Africa

5,730,263

Ozone depleting substances

Table 14 – Electricity consumption by region (MWh)2,236,689

2,999,880

4,226,715

Latin America

114,199

179,197

330,254481,758

North America

7,043,579

8,756,408

10,966,985

13,775,220

Table 15 – Renewable electricity consumption by region (MWh)1,2
FY20

FY21

FY22

FY23

Total renewable electricity purchased

10,244,377

12,969,393

18,153,454

23,567,502

Asia

1,225,534

1,473,254

2,629,500

3,580,261

Europe, Middle East, Africa

2,102,486

2,801,332

4,226,715

5,730,263

Latin America

113,456

174,762

330,254481,758

North America

6,802,901

8,520,045

10,966,985

13,775,220

Table 16 – Non-renewable energy by region (MWh)

FY20

FY21

FY22

FY23

1,039,125

1,164,594

491,417440,366

Asia

175,589

239,490

29,35139,756

Europe, Middle East, Africa

422,093522,878

311,751

205,932

Total non-renewable energy purchasedand consumed

1. Reported values represent Microsoft’s total renewable electricity consumption expressed in MWh from onsite,
renewable energy credits, power purchase agreements (PPAs), and green power tariff programs. Values reflect
Microsoft’s renewable electricity at the time of reporting.
2. For a breakdown on renewable electricity by technology type, see our latest CDP Climate Change response.

Latin America

14,651

19,586

13,823

12,457

North America

426,792

382,640

136,492

182,221

Environmental Data Fact Sheet 2024

22

Table 17 – Water withdrawal, consumption, and discharge detail (megaliters)
FY20

FY21

FY22

FY23

FY20

FY21-FY23

7,936

8,068

10,706

12,951

Asia

1,681

2,051

2,858

3,616

Europe, Middle East, Africa

Data for this period of time was third-party verified by APEX using alimited level of assurance. Following please find the criteria used tomeasure the carbon, energy, and water information:

Microsoft obtains limited thirdparty assurance for the mostrecent year (FY23) prior to theissuance of the Environmental
Data Fact Sheet. The limited
assurance reviews performed by
Deloitte & Touche LLP in FY21
and FY22 do not contemplate
the revisions to the prior year
metrics and therefore Deloitte& Touche LLP provides noassurance related to the revisions
consistent with our policies
disclosed in Section 1.8

Total water withdrawal
By region

1,514

1,294

2,264

2,971

Latin America

110

183

325

484

North America

4,631

4,540

5,259

5,880

4,196

4,773

6,399

7,844

Asia

1,042

1,285

1,872

2,463

Europe, Middle East, Africa

752

697

1,227

1,700

Latin America

74

128

231

351

North America

2,328

2,663

3,069

3,330

Third party

4,169

4,764

6,394

7,841

Surface water

25

4

4

2

Ground water

2

5

1

1

3,740

3,295

4,307

5,107

Total water consumption
By region

By source

Total water discharges
By region

Table 18 – Verification/assurance

Asia

639

766

985

1,153

Europe, Middle East, Africa

762

598

1,037

1,217

Latin America

36

55

94

133

North America

2,303

1,876

2,191

2,550

For carbon and energy
World Resources Institute (WRI)/World Business Council for Sustainable
Development (WBCSD) Greenhouse Gas Protocol, Corporate Accounting
and Reporting Standard, revised edition, including Scope 2 Guidance
amendment (Scope 1 & 2); WRI/WBCSD Greenhouse Gas Protocol
Corporate Value Chain (Scope 3) Accounting and Reporting Standard(Scope 3).
For water
CDP Water Security Reporting Guidance
The scope of the verification included GHG emissions for Scope 1, Scope
2, Scope 3 business air travel, total energy consumption, total electricity
consumption, total renewable electricity consumption, total offsetspurchased, total water withdrawals, total water consumption, and total
water discharges. For FY20, the rest of Scope 3 category emissions
identified as relevant were also included. Latest data adjustments
highlighted in this report made to historic data were outside of the scopeof these previous years’ review.
Any revisions made to FY20 reported values on this report were outsideof the limited assurance review done by APEX.

This fact sheet is for informational purposes only and includes estimates, projections, and other “forwardlooking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the
Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements
generally are identified by the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,”“future,” “opportunity,” “plan,” “may,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result,” andsimilar expressions. Forward-looking statements are based on current expectations and assumptions that are
subject to risks and uncertainties that may cause actual results to differ materially. Microsoft describes risks anduncertainties that could cause actual results and events to differ materially in our reports filed with the Securities
and Exchange Commission. We undertake no obligation to update or revise publicly any forward-looking
statements, whether because of new information, future events, or otherwise.

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