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[ "H5_1\nP_10\nH5_2\nP_11\nH5_3\nP_12\nH5_4\nP_13", "Energy efficiency is built in. \nThe energy consumed by our products during everyday use represents a big share \nof our carbon footprint. So we look at three ways to reduce a product’s energy consumption: more efficient power supplies to bring electricity from the wall to the device, more efficient hardware, and smarter power management software. \nAs a company that designs both the hardware and the software for its products, \nwe’re able to use that technological collaboration for greater energy efficiency. OS X, the Mac operating system, never misses a power-saving opportunity, no matter how small. It puts hard disks to sleep and runs processors in an ultralow power mode when you’re not hard at work on your Mac. And when you are, OS X uses less energy for apps that are open but not visible, pauses animated website plug-ins until you give the OK, and can even idle the processor between keystrokes as you type. These energy \nsavings might seem tiny, but when multiplied by every Apple computer in the world, they’re huge. \nA lot of the things that used to be done on a computer are now being done on an iPad or iPhone. Since these smaller devices use a lot less material and energy, their carbon footprint is much smaller than that of a computer. And as these devices become more and more advanced, their footprint continues to decrease as well—the A7 chip is up to twice as fast as the A6 while still delivering up to 10 hours of battery life. Which means that even though you’ll get better performance, you won’t be using more energy. \nSince 2008, we’ve reduced the average total power consumed by Apple products by 57 percent and reduced a portion of our greenhouse gas emissions, too. So even as we continue to grow faster than the rest of the industry, we’re doing it with products that are friendlier to the environment. \nENERGY STAR standards are just our starting point. \nEvery Apple product not only meets but far exceeds the strict guidelines set by the \nU.S. Environmental Protection Agency for energy efficiency. No other company in our industry can make that claim. In fact, we go beyond the ENERGY STAR specification, offering notebooks that are up to 3.8 times as energy efficient as the ENERGY STAR specification and desktop computers that are up to 4.2 times as energy efficient.3 \nThe EPEAT gold standard. \nThe Electronic Product Environmental Assessment Tool (EPEAT) allows consumers \nto see the effect a product has on the environment. Each product receives a Gold, Silver, or Bronze rank depending on its efficiency and sustainability. Every Apple notebook, desktop computer, and display that EPEAT ranks achieves a Gold rating, \nthe highest possible. \nmore iPhone 5s boxes in each airline shipping \ncontainer. That saves one 747 flight for every \n416,667 units we ship. ", "Keeping recycling local. \nAll electronic waste we collect worldwide is processed in the region where it’s \ncollected—nothing is shipped overseas for disposal. The vast majority of our recycling is handled in-region, too, keeping our transportation-related greenhouse gas emissions low. We currently work with 153 partners around the globe whose \nfacilities are rigorously evaluated annually on health and safety, environmental \ncompliance, material tracking, social responsibility, and other Apple mandates. \nWe are committed to keeping our workers \nsafe from harmful toxins. \nAfter finding a safe replacement material for PVC, we certified its use in our cords in more \nthan 40 regions around the world. \nMany substances commonly used in the electronics industry can be harmful to people \nor the planet. So we design our products with cleaner, safer materials to reduce and eliminate these toxins. And we hold our suppliers accountable—we conduct factory audits, test components with independent laboratories, and verify the results in a lab \nwe built at our headquarters in Cupertino. It’s our mission to make sure anyone who \nassembles, uses, and recycles an Apple product can do so safely. \nWe continue to lead the industry in reducing or eliminating harmful toxic substances \nto keep both people and the environment healthy. We’ve removed many harmful substances from our product designs and go to great lengths to make sure they stay that way. And our suppliers must adhere to our Restricted Substances Specification, which goes beyond the minimum required by law. ", "TR", "TD\nTD_0\nTD_1\nTD_2\nTD_3\nTD_4\nTD_5", "How our carbon footprint informs our thinking. \nWe’re always trying to improve the way we conduct our greenhouse gas life cycle \nanalysis. And when our assessments reveal a material, process, or system that’s making a significant negative impact on our carbon footprint, we reexamine how we design that product, process, or facility. For example, we were using industry-standard methods \nto account for our emissions from aluminum, but because we use aluminum in so \nmany of our products, we decided to undertake an extensive survey of our aluminum \nsuppliers. Our study revealed that emissions associated with manufacturing our aluminum housings were nearly four times higher than we believed, so we’ve updated our 2013 life cycle analysis data to be more accurate. As a result, the carbon emissions we reported for 2013 are 9 percent higher than the carbon emissions we reported for 2012. However, this increase is due to previously underestimating our emissions, not \nbecause our emissions increased. In fact, when we recalculated the 2012 data using \nthe new methodology, our carbon emissions actually dropped by 3 percent year over year. We’re committed to continuing to reduce our greenhouse gas emissions and using our life cycle analysis to drive that change. \ntext_0\ntext_1\ntext_2\ntext_3", "Apple is committed to providing safe working conditions for the people who make our products. Many toxins are restricted not only in the products themselves but also in the manufacturing processes. And our suppliers know how seriously we take this. Our Restricted Substances Specification requires them to demonstrate compliance and subjects them to third-party testing. \nIon chromatography is just one of several methods our Environmental Testing Lab \nuses to ensure the safety of our products. \nThe worst toxic offenders. \nEliminated from our Formerly used in Traditionally used for \ndisplays since 2009. display glass and clarity in glass. Our solder. Phase-out display glass has been completed in 2006. aresnic-free since 2008. \nStill widely used by Brominated flame A group of chemicals other companies in retardants (BFRs) are known as endocrine computers, cables, and toxic compounds disruptors used to soften power cords. We began added to plastic plastics in cables and phasing out polyvinyl enclosures, circuit power cords. Finished chloride (PVC) in 1995.4 boards, and connectors. eliminating from cables \nEliminated from our and power cords in 2013.4 products in 2008. ", "LI_0", "LBody_2\nLBody_3\nLBody_4\nLBody_5\nLBody_6\nLBody_7\nLBody_8", "TD_86\nTD_87\nTD_88\nTD_89\nTD_90\nTD_91\nTD_92", "Fiscal 2011 Location Corporate \nElectricity (million kWh) 235 \nScope 1 (tons CO2e) 14425 \nDefault Grid Emissions Scope 2 (tons CO2e) 82183 \nEffective Emissions by Renewable Energy Scope 2 (tons CO2e) 59516 ", "Smaller packaging means smarter packing. \nMaking thinner, lighter, and more material-efficient products not only reduces their \ncarbon footprint and conserves resources, but also helps reduce greenhouse gas emissions produced during transportation. We’re shipping more and more products per trip, and the savings is adding up. Along with designing the iPhone 5s box to be \n41 percent smaller in volume than the first iPhone box, we’ve also redesigned our iMac packaging. The slanted shape of the iMac box makes it easier to stack more \non each shipping pallet. So more products can be shipped in one trip, resulting in fewer emissions. ", "We take a rigorous approach to measuring our environmental impact. In fact, we know of no other company in our industry that goes so far in measuring, verifying, and disclosing its carbon emissions. Instead of reporting just the carbon footprint \nof the facilities we own, we also include the carbon footprint of our supply chain. \nAnd we don’t use generalized industry-standard measurement models—we use a comprehensive product life cycle analysis that measures the carbon footprint throughout the entire life of our products, so everything is meticulously accounted for. That means adding up emissions generated from the manufacturing, transportation, use, and recycling of our products, as well as emissions generated by all of our facilities. And while we’re constantly improving, we’re also constantly reporting—even when \nour numbers aren’t as good as we’d like them to be. ", "127 \n11007 \n39428 \n39428 _0", "26 \n556 \n7930 \n0 ", "18 \n45 \n10139 \n0 _0", "10 \n804 \n4598 \n0 _1", "48 \n2013 \n16845 \n16845 _0", "138 \n0 _2\n51651 \n28988 ", "121 – – \n2600 – – \n65769 – – \n65769 – – _0", "232 \n13159 \n84611 \n48215 ", "130 \n10949 \n39457 \n25450 ", "22 \n560 \n6952 \n0 _4", "20 \n59 \n10635 \n0 _5", "10 _0\n715 \n4801 \n0 _6", "9 \n32 \n4946 \n4946 _0", "40 \n845 \n17819 \n17819 _0", "217 \n146 \n87732 \n7664 ", "104 \n146 _0\n52977 \n0 _7", "159 – – \n2812 – – \n83285 – – \n83285 – – _0", "232 _0\n14821 \n85354 \n17503 ", "144 \n12231 \n43116 \n0 _9", "15 \n509 \n4400 \n0 _10", "23 \n83 \n12162 \n0 _11", "12 \n743 \n5320 \n0 _12", "12 _0\n50 \n5826 \n5826 _0", "28 \n1205 \n14531 \n11677 ", "305 \n2201 \n123855 \n0 _13", "160 \n2201 _0\n75836 \n0 _14", "171 98 72 \n6158 3548 2610 \n77425 44606 32819 \n74002 44606 29397 ", "238 \n15251 \n87719 \n17924 ", "149 \n12656 \n44613 \n0 _18", "14 \n472 \n4077 \n0 _19", "24 \n87 \n12757 \n0 _20", "12 _1\n767 \n5494 \n0 _21", "12 _2\n52 \n6102 \n6102 _0", "28 _0\n1217 \n14676 \n11823 ", "324 \n2307 \n131800 \n0 _22", "168 \n2307 _0\n79477 \n0 _23", "174 99 75 \n6284 3580 2704 \n79012 45013 33998 \n75589 45013 30575 ", "LI_2", "LBody_11\nLBody_12\nLBody_13\nLBody_14", "Parameter \nQuantity \nUnits \nBoundary/ Protocol ", "Natural Gas Consumption: \n7,564,141 \ntherms \nWorldwide occupied properties / Apple Internal Protocol ", "Electricity Consumption: \n708,122,215 \nkilowatt hours (kWh) \nWorldwide occupied properties / Apple Internal Protocol _0", "Renewable Energy Credits: \n527,698,368 \nkWh \nWorldwide / Invoiced quantities ", "Scope 1 GHG Emissions \n47,552 \nmetric tons of carbon dioxide equivalent (tCO2e) \nWorldwide occupied properties / WRI/WBCSD GHG Protocol ", "Scope 2 GHG Emissions \n286,634 \ntCO2e \nWorldwide occupied properties / WRI/WBCSD GHG Protocol _0", "Scope 3 GHG Emissions (Employee Commute amp; Air Travel) \n231,128 \ntCO2e _0\nWorldwide occupied properties / WRI/WBCSD GHG Protocol Value Chain (Scope 3) ", "Water Withdrawal \n2,317,181 \ncubic meters 3(m) \nWorldwide occupied properties / Apple Internal Protocol _1", "Trash disposed in Landfill \n2,686,967 \nkilograms (kg) \nWorldwide occupied properties / Apple Internal Protocol _2", "Hazardous Waste (Regulated waste) \n31,437 \nkg \nWorldwide occupied properties / Apple Internal Protocol _3", "Recycled Material (Removal by recycling contractor) \n7,196,709 \nkg _0\nWorldwide occupied properties / Apple Internal Protocol _4", "TH_67\nTD_79\nTD_80\nTD_81\nTH_68\nTD_82\nTD_83\nTD_84\nTD_85", "LI", "LBody\nLBody_0\nLBody_1", "An important first step in managing \nelectricity is to ensure our facilities use as little as possible, which is why we designed \nthem for maximum energy efficiency. ", "Where feasible, we’re producing our own renewable energy by building our own \nsolar arrays, fuel cells, and micro-hydro \ngeneration systems. ", "6 \n3243 \n3243 _0", "44 \n22663 \n0 _3", "93 \n28988 _0\n28988 _1", "111 \n33492 \n7664 _0", "2 \n1263 \n0 _8", "123 \n36959 \n0 _15", "18 _0\n9965 \n0 _16", "3 _0\n1095 \n0 _17", "129 \n38666 \n0 _24", "21 \n11626 \n0 _25", "5 \n2031 \n0 _26", "No one spends more time with an Apple product than an Apple customer. By minimiz\ning or outright eliminating many harmful toxins, we ensure that each product is safe to \nuse, year after year. Our power cords are PVC- and phthalate-free. Our touchscreens are arsenic-free. And our cases and enclosures are BFR-free. No other company does more to keep its products free of so many toxins. ", "Designing greener products means considering the environmental impact of the materials used to make them. From the glass, plastic, and metal in our products to the paper and ink in our packaging, we’re conscious of how those materials affect our \nproducts as well as our environment. We continue to lead the industry in reducing or eliminating environmentally harmful substances, and we’re continually striving to \nmake our products the cleanest and safest they can be. ", "LI_3", "LBody_15\nLBody_16\nLBody_17", "Page 3 \nEnvironmental Responsibility at Apple ", "Page 4 \nClimate Change Facilities Product usage Transportation Recycling ", "Page 15 \nGreener Materials Removing toxins Product testing ", "Page 17 \nFinite Resources Conserving materials Recycling ", "Page 20 \nAppendix A Environmental Health and Safety Policy Statement ", "Page 21 \nAppendix B Carbon Assurance and Review Statements ", "Page 29 \nAppendix C References ", "Total Electricity (million kWh) \n20% Renewable—All corporate, data centers, and retail 26% Renewable—All corporate and data centers only ", "Emissions Avoided by Renewable Energy (tons CO2e) \n21% Reduction of total default grid emissions ", "Total Electricity (million kWh) _0\n48% Renewable—All corporate, data centers, and retail 65% Renewable—All corporate and data centers only ", "Emissions Avoided by Renewable Energy (tons CO2e) _0\n43% Reduction of total default grid emissions ", "Total Electricity (million kWh) _1\n72% Renewable—All corporate, data centers, and retail 94% Renewable—All corporate and data centers only ", "Emissions Avoided by Renewable Energy (tons CO2e) _1\n60% Reduction of total default grid emissions ", "Total Electricity (million kWh) _2\n73% Renewable—All corporate, data centers, and retail 94% Renewable—All corporate and data centers only ", "Emissions Avoided by Renewable Energy (tons CO2e) _2\n60% Reduction of total default grid emissions _0", "Good manufacturing processes and responsible recycling minimize toxins in our supply chain, which helps keep our land, air, and water free from pollutants. We set our own \nstandard to stop using many harmful toxins that are damaging our environment and hope that others follow our lead. ", "LI_1", "LBody_9\nLBody_10", "br_40\ntext_21\nbr_41\ntext_22", "br_42\ntext_23\nbr_43\ntext_24", "Environmental Responsibility Report ", "2014 Progress Report, Covering FY2013 ", "Contents ", "Reduce our impact on climate change by using renewable energy sources and driving energy efficiency in our products. ", "Pioneer the use of greener materials in our products and processes. ", "Conserve precious resources so we all can thrive. ", "Apple’s 2014 Environmental Responsibility Report, covering fiscal year 2013, highlights the progress we’ve made toward that goal. We have set three priorities for our work where we believe Apple can make the most impact going forward: ", "Why we measure our carbon footprint the way we do. ", "0.6M ", " 7.5M ", " 1.6M ", " 0.5M ", "23.6M ", "Facilities ", "How We’re Achieving Net Zero Energy ", "Energy Efficiency ", "Energy Generation ", "Purchasing Renewable Energy ", "Cupertino, CA ", "Elk Grove, CA ", "Austin, TX ", "Cork, Ireland ", "Singapore ", "Other Offices ", "Data Centers ", "Maiden, NC ", "Newark, CA ", "Prineville, OR ", "Reno, NV ", "Retail Stores Domestic (USA) International ", "493 ", "Total Net Emissions (tons CO2e) ", "171298 ", "45330 ", "Fiscal 2012 ", "Corporate ", "Cupertino, CA ", "Elk Grove, CA ", "Austin, TX ", "Cork, Ireland ", "Singapore ", "Other Offices ", "Data Centers ", "Maiden, NC ", "Newark, CA ", "Prineville, OR ", "Reno, NV ", "Retail Stores Domestic (USA) International ", "608 ", "Total Net Emissions (tons CO2e) ", "155281 ", "116464 ", "Fiscal 2013 ", "Corporate ", "Cupertino, CA ", "Elk Grove, CA ", "Austin, TX ", "Cork, Ireland ", "Singapore ", "Other Offices ", "Data Centers ", "Maiden, NC ", "Newark, CA ", "Prineville, OR ", "Reno, NV ", "Retail Stores Domestic (USA) International ", "708 ", "Total Net Emissions (tons CO2e) ", "131844 ", "195129 ", "Calendar 2013 ", "Corporate ", "Cupertino, CA ", "Elk Grove, CA ", "Austin, TX ", "Cork, Ireland ", "Singapore ", "Other Offices ", "Data Centers ", "Maiden, NC ", "Newark, CA ", "Prineville, OR ", "Reno, NV ", "Retail Stores Domestic (USA) International ", "736 ", "Total Net Emissions (tons CO2e) ", "135338 ", "205017 ", "Product usage ", "Transportation ", "Recycling ", "Removing toxins ", "No product should be hazardous to your health. Or anyone else’s. ", "Better for the environment. ", "Better for the people who use them. ", "Better for the people who make them. ", "We design products with safer materials. ", "Product testing ", "Energy (Direct and Indirect Consumption) ", "Renewable Energy Credits (Self-Generation, Direct Access, Utility Green Energy Programs, and Market RECs) – Corporate Campuses and Data Centers in Cupertino, California; Elk Grove, California; Austin, Texas; Maiden, North Carolina; Prineville, Oregon; Reno, Nevada; Munich, Germany; Cork, Ireland; and Australia ", "Water (Total withdrawal) ", "Greenhouse Gas (GHG) Emissions: Direct Scope 1, Indirect Scope 2 by weight ", "GHG Emissions: Optional Indirect Scope 3 emissions by weight (Employee Commute and Air Travel ", "Waste Quantities and Disposition ", "Appropriateness and robustness of underlying reporting systems and processes, used to collect, analyze, and review the environmental information reported; ", "• Assurance of select environmental data and information included in the Report for the fiscal year 2013 reporting period (September 30, 2012 through September 28, 2013), specifically, in accordance with Apple’s definitions and • World Resources Institute (WRI)/World Business Council for Sustainable Development (WBCSD) Greenhouse Gas Protocol: ", "Text or other written statements associated with the Report ", "Activities outside the defined assurance period ", "Excluded from the scope of our work is any assurance of information relating to: ", "Interviews with relevant personnel of Apple (10 individuals including employees and external contractors at the corporate level); ", "Review of internal and external documentary evidence produced by Apple; ", "Audit of environmental performance data presented in the Report, including a detailed review of a sample of data against source data; and ", "Review of Apple information systems for collection, aggregation, analysis and internal verification and review of environmental data. ", "BVNA undertook the following activities: ", "The Energy, Water, Waste, and Scope 1 amp; 2 GHG Emissions assertions shown above are materially correct and are a fair representation of the data and information; and ", "Nothing has come to our attention to indicate that the Renewable Energy Credits and Scope 3 GHG emissions assertion within the scope of our verification is not materially correct and is not a fair representation of the actual data for the assurance period. ", "Apple has established appropriate systems for the collection, aggregation and analysis of relevant environmental information, and has implemented underlying internal assurance practices that provide a reasonable degree of confidence that such information is complete and accurate. ", "Based on the assurance process and procedures conducted, we conclude that: ", "#6; #::gt;$# :$?B9 AB$AB: 99A#B: C", "# 3\t\t\t", "LI_5", "LBody_20\nLBody_21\nLBody_22", "text_10", "\t!\t\tquot;#$-6 ", "L_7\nLI_7", "LI_6", "LBody_23\nbr_17", "br_16\ntext_11", "/474!!", "#1; ", "• 3\t\t", "o +%\t,", "o 3\t !!", "o +%", " #1; ", "br_33\ntext_17", "2\t!", "9 ", "br_37\ntext_18", "lt;\t!", "text_19", "2", "text_20", ";H\t!", "3lt;", "3lt;", "\tlt;", "\tlt;", "LI_4", "LBody_18\nLBody_19", "br_6", "br_7", "br_12", "br_13", "LBody_24", "br_18", "LI_8", "LBody_25\nLBody_26\nLBody_27", "br_25", "br_26", "br_34", "br_35", "br_36", "br_38", "br_39" ]

[ "TD_11\nTD_12\nTD_13\nTD_14\nTD_15\nTD_16\nTD_17\nTD_18\nTD_19\nTD_20\nTD_21", "Our \n Human Rights Policy\nWe conduct human rights due diligence to identify risks and work to mitigate them. We also seek to remedy adverse impacts, track and measure our progress, and report our findings. Our board of directors adopted the policy and is responsible for overseeing and periodically reviewing it. Apple’s Senior Vice President and General Counsel is responsible for its implementation, and reports to the Board and its committees on our progress and significant issues. \nEmbedding respect for human rights \nWe’ve worked to embed respect for human rights across our company — in the technology we make, the way we make it, and how we treat people. A number of teams are responsible for carrying out human rights due diligence, including the Privacy, Corporate, and Compliance teams within Apple’s Legal and Global Security organization, as well as Apple’s Environment and Supply Chain Innovation (ESCI) team within Worldwide Operations. \nWe are deeply committed to building a more just and inclusive world and are moving forward with plans to conduct a civil rights audit. \nIdentifying human rights risks is the first step to addressing those risks through improvements to our policies and management systems. We work to align our efforts with the business and human rights due diligence process set forth in the UNGPs to identify, mitigate, prevent, and remedy human rights risks. \nWe identify salient human rights risks through internal risk assessments and external industry-level third-party audits, as well as through the channels we maintain with rights holders and other stakeholders, including investors, human rights and labor experts, governments, and international bodies such as the UN. \nWe’re committed to continually assessing our progress and incorporating what we learn into our work. We track and measure our performance across a range of areas, and apply the lessons we learn to continually improve. We publicly report detailed information on our approach and our performance in the reports, websites, and other disclosures listed on \n page 8\nThe rainbow arches at Apple Park in Cupertino, California are a nod to Apple’s original logo and an expression of our inclusive values. \n\n Introduction Environment Our People Suppliers Customers Communities Governance Appendix\nL\ntext", "H6_1\nP_26\nH6_2\nP_27\nH6_3\nTable_2\nP_28", "H3_4\nP_30\nSect_15", "H1_10\nTable_4\nP_47", "TD_22\nTD_23\nTD_24\nTD_25\nTD_26\nTD_27\nTD_28\nTD_29\nTD_30\nTD_31", "TD_39\nTD_40\nTD_41\nTD_42\nTD_43\nTD_44\nTD_45\nTD_46\nTD_47", "TR_9", "TH_1\nTH_2\nTD_63\nTD_64\nTD_65\nTD_66\nTD_67\nTD_68\nTD_69\nTD_70", "TR_10", "TH_3\nTH_4\nTH_5\nTD_71\nTH_6\nTD_72\nTH_7\nTD_73\nTH_8\nTD_74\nTH_9\nTD_75\nTH_10\nTD_76\nTH_11\nTD_77", "TR", "TD\nTD_0\nTD_1\nTD_2\nTD_3\nTD_4\nTD_5\nTD_6", "TD_32\nTD_33\nTD_34\nTD_35\nTD_36\nTD_37\nTD_38", "TD_51\nTD_52\nTD_53\nTD_54\nTD_55\nTD_56\nTD_57\nTD_58", "TR_12", "TH_13\nTH_14\nTD_79\nTH_15\nTH_16\nTD_80\nTH_17\nTD_81\nTH_18\nTD_82\nTH_19\nTD_83\nTH_20\nTD_84", "H3_1\nP_12", "People and Environment in Our Supply Chain Annual Progress Report \nPublished annually since 2007 (formerly known as the Supplier Responsibility Progress Report), this report contains a detailed accounting of our progress, challenges, and future plans across all areas of our supplier requirements. \n\n Read our Annual Progress Report\nEfforts to Combat Human Trafficking and Slavery Disclosure \nThis disclosure is a specialized filing that focuses specifically on our efforts to prevent and address forced labor risks throughout our supply chain, and includes our due diligence process for our entire business, including manufacturing, materials and goods sourcing, and services. This report also demonstrates our alignment with the UNGPs and meets regulatory requirements in the UK, Australia, and California. \n\n Read our disclosure\nConsistently raising the bar. \nWe revisit all of our supplier requirements every year, consistently raising the bar that suppliers must meet in order to continue doing business with us, and publish the updates publicly. \n\n Read the Apple Supplier Code of Conduct and Supplier\n\n Responsibility Standards\nTake a closer look. \nWe publish additional reports that provide a transparent look at our supply chain. Our Conflict Minerals Report describes our work to responsibly source materials. Our Smelter and Refiner List publishes a list of all identified tin, tungsten, tantalum, gold (3TG), cobalt, and lithium smelters and refiners across our global supply chain, and the Apple Supplier List shares the companies and their locations that comprise at least 98 percent of our direct manufacturing spend. \n\n Read our disclosures", "At Apple, we work every day to put people first — by empowering them with accessible technology, being a force for equity and opportunity, creating an inclusive and diverse work environment, and respecting the human rights of everyone whose lives we touch. \n\n Human rights\nOur People \nWe’re committed to inclusion and diversity for our team and in our world. And we have programs and benefits to support the development of our team members. We continue to prioritize the health and safety\n of our teams, customers, supplier employees, and communities. \n\n Inclusion and diversity Growth and development Engagement Benefits and compensation Workplace practices and policies Health and safety\nSuppliers \nWe hold ourselves and our suppliers to the highest standards of labor and human rights, health and safety, environmental protections, and ethics. We’re working every day to support more people in our supply chain and surrounding communities. And we’re collaborating with others to promote best practices and scale innovative solutions. \n\n Labor and human rights in the supply chain Health, safety, and wellness Responsible materials sourcing Education and professional development Environment\nCustomers \nWe’re focused on infusing our values into our products — engineering privacy and security into everything we make and designing our products and services to be accessible to and inclusive of the widest range of users. We also find innovative ways to support people’s education, health, and a range of human rights topics, with a specific focus on communities too often denied opportunities. \n\n Privacy Accessibility Inclusive design Education Health Caring for customers", "H6_4\nP_31\nSect_16", "We’re committed to helping address shared global challenges. That’s why we engage with public policy and the legal system when we identify an opportunity to support the rights and well-being of our people, customers, communities, and planet. \nAdvocating for strong climate policies \nApple’s climate policy advocacy centers on several principles, each of which govern Apple’s public policy positions on climate: Set strong targets based on science; disclose comprehensive emissions; create sector-specific policies; and support a green economy for all. \nIn April 2021, we made a public statement calling for mandatory disclosures of global greenhouse gases across all emissions scopes. The statement also focused the discussion within industry and government toward greater transparency and increased attention by regulators. \nIn May 2021, Apple also became one of the first companies to voice support for the enactment of the Clean Energy Standard (CES) that would decarbonize the power grid by 2035. And at the 26th UN Climate Change Conference of the Parties (COP26) in Glasgow, Scotland, in 2021, Apple called for bold government action on climate change, joining several new initiatives, including the First Movers Coalition, the Forest Investor Club, and the Clean Energy Demand Initiative. \nWe also advocate for country-specific measures that motivate climate action. For example, we’ve called for enhanced climate ambition and renewable energy deployment in Japan’s Basic Energy Plan and Nationally Determined Contribution (Japan’s plan to reduce emissions in furtherance of the Paris Agreement), and for decarbonization policies to prioritize support for new technologies that can fully account for reducing emissions across their life cycle. \nSpeaking out for rights \nWe believe that every person should be treated with dignity and respect, and we speak out publicly in ways that reflect our values. As just one recent example, we’ve continued our public support for LGBTQ+ equality by working with The Human Rights Campaign and other organizations to support LGBTQ+ equality protections and oppose discriminatory proposals. This includes legislative advocacy at the federal and state levels, and working with coalitions of businesses to stand against what we believe to be harmful and divisive legislation that threatens individuals, families, and communities. Most recently, that included sending a letter to Texas leadership opposing laws that discriminate against the LGBTQ+ community. \n Read more here.\nIn the U.S., the legal system is one avenue through which Apple can take action to support our values. For example, in January 2022, Apple, along with other leading companies, filed an \n amicus brief\nIn November 2021, Apple filed a lawsuit against NSO Group and its parent company to hold it accountable for the surveillance and targeting of Apple users. The complaint provides new information on how NSO Group infected victims’ devices with its Pegasus spyware. To prevent further abuse and harm to its users, Apple is seeking a permanent injunction to ban NSO Group from using any Apple software, services, or devices. ", "TR_8", "TH_0\nTD_60\nTD_61\nTD_62", "Thorough mapping informs our strategy. \nAn effective strategy requires deep understanding of our supply chain. To date, we have mapped over 1000 labor recruitment agencies that work with our suppliers across 32 countries. \nA leading strategy requires leading tools. \nThe Apple Responsible Labor Recruitment Toolkit, developed in partnership with the International Organization for Migration, provides suppliers and their labor agencies with easy-to-use tools that help them effectively manage and report data, mitigating forced labor risks before people even enter our supply chain. In addition to providing hands-on training, we are making these tools openly available for others to use. \nAwareness is power. \nWe require our suppliers to provide their employees with training on their workplace rights on their first day on the job. This helps to ensure that every person is aware of their rights and what to do if they’re not being respected, which includes the ability to anonymously contact Apple directly. Foreign Contract Workers, who make up a very small percentage of people in our supply chain, also receive training prior to leaving their home country, as well as upon arriving in their destination country. To date, our suppliers have provided workplace rights training to over 23.6 million people. In addition, last year we directly engaged with over 350,000 people in our supply chain to learn more about their workplace experience. \nInvesting in consistent improvement. \nThrough our new Supplier Employee Development Fund, we’re investing $50M to expand programs designed to continue to improve the rights training experience, worker voice platforms, and supplier employee education opportunities. \nWe hold suppliers accountable. \nOnce we’ve implemented thorough preventative measures, independent, third-party assessments verify that our suppliers are meeting our standards. Looking for evidence of forced labor is part of every supplier assessment. If we find any violations of our Code and Standards, we take swift action to remedy the issue and improve their operations. ", "A close look. \nWe regularly conduct independent, third-party assessments, including surprise assessments, of our suppliers, verifying compliance with over 500 points across our standards. This includes an extensive document review to be sure all hiring and personnel records are in place and accurate. In addition to specialized forced labor assessments for at-risk suppliers, we also require many suppliers to participate in facility-wide assessments, such as the Validated Assessment Program, to verify performance across the supplier’s entire business. In the event that we find gaps in a supplier’s compliance or capabilities, we require them to implement a Corrective Action Plan. To date, our assessments have covered 94 percent of our direct manufacturing spend. \nWe investigate every report. \nIn addition to thoroughly assessing our suppliers’ performance in upholding our standards, we also receive reports from the press, governments, civil society, and people in our supply chain, and we encourage the public to report concerns via \n https://www.apple.com/uk/supplier-responsibility/\nSwift action and steep penalties. \nForced labor in any form is a Core Violation (the most serious violation level) of our requirements. If a Core Violation is discovered, the supplier’s CEO is notified and the supplier is immediately placed on probation, pending the successful completion of a Corrective Action Plan. Probation can include no new projects, no new business, and termination of existing business. In addition to commercial penalties, if a supplier is unable or unwilling to meet our standards, they risk removal from our supply chain. Since 2009, we have directed the removal of 24 manufacturing supplier facilities and 170 smelters and refiners for failure to meet our requirements. \nAction this year. \nIn FY21, across more than 1100 assessments, we found no instances where anyone was forced to work in our supply chain. We did find two cases where employees of the same supplier in Taiwan paid recruitment fees. Per our requirements, the supplier directly repaid their employees for those fees. To date, our suppliers have directly repaid $33.2M in recruitment fees to 37,322 of their employees. \nWe track progress and report transparently. \nConsistent improvement requires transparency and accountability. Since 2007, we have been publishing reports on our efforts across all of our work to transparently share our progress and challenges. ", "P_18\nP_19\nP_20\nP_21\nP_22", "TD_7\nTD_8\nTD_9\nTD_10", "Sect_9\nLI_1\nL_0", "Product energy efficiency: \n0.2 million metric tons avoided _0\n22% 8% \nProduct use Product transport (Scope 3) (Scope 3) \nLoad reduction and mode switching: \n* Low-carbon materials represents emissions savings from transitioning to recycled materials in our products, or use of low-carbon aluminum, as described on \n page 18\n\n Introduction Environment Our People Suppliers Customers Communities Governance Appendix_0", "TD_48\nTD_49\nTD_50", "Our values flow through the technology we make, the way we make it, and how we care for people and the planet we share. These values — accessibility, education, environment, inclusion and diversity, privacy, and supplier responsibility \n— are central to our ESG approach. And we go further to address a comprehensive set of critical issues that matter to our company and to our stakeholders. \nFrom our commitment to human rights to our 2030 environmental goals, ESG topics are deeply interconnected. We can make the biggest impact only when we understand how these issues relate to one another. \nESG priorities are managed across Apple, and our senior leaders play an important role in integrating ESG into functions across the company. We listen to stakeholders \n— including our people, suppliers, communities, shareholders, and other external groups — to understand the issues they care about. And we measure our ESG progress across our business so that we can work toward being more transparent with each year. \nAbove all, we’re always working to leave the world better than we found it, and to create powerful tools that empower others to do the same. ", "Today, our teams around the world infuse Apple’s deeply held values into everything we make. That work can take many forms. But whether we’re protecting the right to privacy, designing technology that is accessible to all, or using more recycled material in our products than ever, we are always working to make a difference for the people we serve and the planet we inhabit. \nAs a company, we know that our impact on people’s lives reaches beyond the technology we create. And we apply the same ethos of constant innovation and improvement to every aspect of our work — from building an inclusive company culture where everyone feels welcome to becoming carbon neutral across our global supply chain and the lifetime of our products by 2030. \nAt the heart of our efforts is a steadfast commitment to serving the communities we are a part of. We work with teachers, advocates, and entrepreneurs from diverse backgrounds as part of our Racial Equity and Justice Initiative. We help create opportunity in communities on the frontlines of climate change through the Restore Fund, which supports carbon removal and sustainable forestry. And we provide resources and training to the next generation of innovators through the Apple Developer Academy and educational initiatives across the globe. \nIn this report, we are pleased to share our progress, which is a product of collaboration with committed partners worldwide. At Apple, we believe that the only way to effectively tackle global challenges is by working together, and we are grateful to share this road with so many passionate leaders. \nWe’re engaged in this work because it’s right — and because we want to leave the world better than we found it in everything we do. By leading with our values, we hope to be a ripple in the pond that inspires a far greater change. ", "FY21 REC purchase: \n0.4 million metric tons avoided \nLow-carbon materials*: \n7.3 million metric tons avoided \nUse of renewable electricity: ", "Supplier energy efficiency: \n1.1 million metric tons avoided \nSupplier clean energy: \n13.9 million metric tons avoided \nFY21 REC purchase: _0", "Apple has zero tolerance for forced labor. In the more than 50 countries and regions where our suppliers operate, we have teams of experts, including independent third parties, who monitor our suppliers and put in place industry-leading procedures to help ensure that no one is forced to work. Our comprehensive policies start before we even sign a contract with suppliers, and we are consistently raising the bar. \nApple policies and our supplier requirements align with international labor and human rights standards, including those of the International Labour Organization, the United Nations Guiding Principles on Business and Human Rights (UNGPs), and the Organisation for Economic Co-Operation and Development. \nOur supplier requirements contain strict standards for responsible labor recruitment, and apply to all suppliers, protecting workers globally. We go above and beyond legal requirements in many places by strictly prohibiting labor recruitment in regions where we cannot conduct adequate due diligence and by maintaining a zero recruitment fees policy, because we believe no one should pay to secure a job. \nWe work from the earliest stages of product design to ensure that the materials, machines, and processes used in the manufacturing of our products prioritize the health and safety of the people working in our supply chain. \n\n Introduction Environment Our People Suppliers Customers Communities Governance Appendix_3", "H1_11\nSect_22\nP_50", "\n Environment Our People\nGovernance \nEnvironmental \nThis report contains forward-looking statements and actual results may differ. Numbers and percentages in this report include estimates or approximations and may be based on assumptions. For more information, see “About the report. ", "This past year we intensified our efforts to reduce Apple’s emissions. In fiscal year 2021, we avoided over 23 million metric tons of emissions across all scopes. Initiatives that we’ve been growing for years — like sourcing 100 percent renewable electricity for our facilities, transitioning suppliers to clean energy, and using low-carbon materials in products \n— yielded indisputable results. \nThanks to this work, we’ve begun to decouple business growth from emissions: While our revenue grew 33 percent, our emissions grew by less than 5 percent. To mitigate this increase in emissions, we applied an additional 0.6 million tons of renewable energy credits (RECs) and 0.5 million metric tons of carbon offsets to proportionally cover electricity use and direct emissions, respectively, across our value chain. This represents a short-term bridging solution as we grow our carbon reduction programs to meet the scale of the challenge. \nGross emissions ", "P_32\nP_33\nP_34", "The Apple Human Rights Policy \nOur Human Rights Policy outlines how we treat everyone, including our customers, employees, business partners, and the people across every level of our supply chain. \n\n Read the Apple Human Rights Policy\nThe Apple Supplier Code of Conduct and Supplier Responsibility Standards ", "H1_12\nTable_5", "We’ve been carbon neutral for our own operations since 2020, including business travel and employee commute, and are progressing toward an urgent goal to be carbon neutral across our entire business — including the full life cycle of our products — by 2030. We’re on an ambitious journey to one day make our products using only recycled or renewable materials. We design our products to be safe for anyone who assembles, uses, or recycles them \n— and to be better for the environment. At the same time, we’re partnering with communities and local leaders and working to make sure our environmental efforts are also a force for equity and justice. \n\n Climate change Resources Smarter chemistry", "Communities \nWe’re accelerating social change by supporting communities and organizations that are addressing society’s toughest problems, including a focus on communities of color. Some of our key initiatives include the Racial Equity and Justice Initiative (REJI), Community Education Initiative, Developer Academies, Entrepreneur Camp, and affordable housing initiative. Our corporate donations support nonprofits and other organizations with which we partner, and we empower employees to contribute to the causes they care about through our Employee Giving program. \n\n Racial Equity and Justice Initiative Education Affordable housing Corporate donations Employee giving Job creation", "H3_2\nP_14", "Our commitment begins with treating everyone with dignity and respect. But it doesn’t end there. We believe in the power of technology to empower and connect people around the world \n— and that business can and should be a force for good. \nApple’s Human Rights Policy ", "LI\nLI_0", "LBody_2\nLBody_3\nLBody_4", "TR_7", "TH\nTD_59", "0.02% \n0% \n0.5% ", "Direct emissions \nElectricity \nBusiness travel ", "(Scope 1) \n(Scope 2) \nand commute ", "Product footprint \n70% \nProduct manufacturing (Scope 3) ", "0.2 million metric tons avoided _1\n0.3% \nEnd-of-life product processing (Scope 3) ", "\n Our approach 23 Inclusion and diversity 23 Growth and development 26 Benefits 27 Compensation 28 Engagement Workplace practices and policies 30 Health and safety at Apple 33\n\n Introduction Environment Our People Suppliers Customers Communities Governance Appendix_1\n\n Introduction Environment Our People Suppliers Customers Communities Governance Appendix_2", "\n Read the Apple Supplier Code of Conduct and Supplier Responsibility Standards\nWe engage early. \nTo address forced labor risks at its roots, we know that our work has to begin before people enter our supply chain. ", "H4_0\nP_49", "TR_11", "TH_12\nTD_78", "3 \nLink", "4 \nLink_0", "6 \nLink_1", "8 \nLink_2", "9 \nLink_4", "10 \nLink_5", "Social \n\n Customers", "13 \nLink_7", "13 _0\nLink_8", "18 \nLink_9", "20 \nLink_10", "23 \nLink_11", "23 _0\nLink_12", "26 \nLink_13", "27 \nLink_15", "28 \nLink_16", "29 \nLink_17", "30 \nLink_18", "33 \nLink_20", "37 \nLink_22", "40 \nLink_23", "43 \nLink_25", "44 \nLink_27", "45 \nLink_29", "46 \nLink_31", "48 \nLink_32", "48 _0\nLink_33", "50 \nLink_34", "52 \nLink_35", "53 \nLink_36", "54 \nLink_37", "55 \nLink_38", "59 \nLink_39", "60 \nLink_40", "62 \nLink_42", "64 \nLink_43", "65 \nLink_45", "67 \nLink_46", "68 \nLink_47", "70 \nLink_48", "71 \nLink_49", "72 \nLink_50", "74 \nLink_51", "75 \nLink_52", "77 \nLink_55", "78 \nLink_56", "84 \nLink_57", "85 \nLink_58", "H1_1\nP_8", "* Pay equity at the intersections of race and ethnicity with gender \nwas achieved in 2022. ** Leadership roles include managers at all levels of our company. ", "We embed transparency and accountability at every level of our company. Apple’s board and governance structure helps foster principled actions, informed and effective decision-making, and appropriate monitoring of our compliance and performance. We’re committed to conducting business ethically, honestly, and in compliance with applicable laws and regulations. \n\n Corporate governance Ethics and compliance Tax payments", " and natural resources \nTracking progress ", "\n Inclusion and diversity Workplace practices Health and safety Labor and human rights\n\n in the supply chain Privacy Accessibility Inclusive design", "LBody_0\nLBody_1", "Sect_10\nLI_3", "13 13 18 20 \nLink_59", "H4\nP_36\nP_37", "37 _0\nLink_60", "40 _0\nLink_61", "43 _0\nLink_62", "44 _0\nLink_63", "45 _0\nLink_64", "46 _0\nLink_65", "We set the highest standards. \nEliminating forced labor begins with setting and maintaining the highest standards. Our standards often go above and beyond legal requirements to protect people from forced labor risks. ", "In this section _0\n\n Our approach 59 Racial Equity and Justice Initiative 60 Education 62 Affordable housing initiative 64 Corporate donations 65 Employee giving 67 Job creation 68", "70 71 72 \nLink_73", "Environmental Social Governance Report ", "Apple’s 2022 ESG Report ", "Contents ", "Introduction ", "Letter from Tim Cook ", "Report highlights ", "Our approach ", "Our commitment ", "Link_3", "to transparency ", "Advocating for change ", "Our commitment ", "Link_6", "to human rights ", "\n Suppliers", "\n Communities Governance", "\n Appendix", "\n ESG Index ↗︎", "Our approach ", "Climate change ", "Resources ", "Smarter chemistry ", "Our approach ", "Inclusion and diversity ", "Growth and ", "Link_14", "development ", "Benefits ", "Compensation ", "Engagement ", "Workplace practices ", "Link_19", "and policies ", "Health and safety ", "Link_21", "at Apple ", "Our approach ", "Labor and human rights ", "Link_24", "in the supply chain ", "Health, safety, ", "Link_26", "and wellness ", "Responsible materials ", "Link_28", "sourcing ", "Education and ", "Link_30", "professional development ", "Environment ", "Our approach ", "Privacy ", "Accessibility ", "Inclusive design ", "Education ", "Health ", "Caring for customers ", "Our approach ", "Racial Equity ", "Link_41", "and Justice Initiative ", "Education ", "Affordable housing ", "Link_44", "initiative ", "Corporate donations ", "Employee giving ", "Job creation ", "Corporate governance ", "Ethics and compliance ", "Tax payments ", "Awards and recognition ", "United Nations ", "Link_53", "Sustainable Development ", "Link_54", "Goals ", "Stakeholder engagement ", "ESG data summary ", "About the report ", "Endnotes ", "At Apple, we believe the measure of any great innovation is the positive impact it has on people’s lives. It’s why we work every day to make our technology an even greater force for good. ", "Tim Cook ", "CEO ", "Report highlights ", "At Apple, we’re demonstrating every day that business can and should be a force for good. And we’ve made important progress over the last year through our Environmental, Social, and Governance (ESG) initiatives. That would not be possible without the innovation and collaboration of teams across Apple, and the people and organizations we partner with. As we look ahead, we know there is more to be done. We’re committed to continue to build on our efforts and drive even greater impact in the years to come. ", "Our approach ", "Environment ", "Social ", "Governance ", "Our commitment to transparency ", "P_15", "In addition to this report, we’ve been reporting on ESG topics for many years. See our topic-specific reports and websites for more information on each issue. ", "Advocating for change ", "P_17", "Protecting our customers ", "Our commitment to human rights ", "Identifying and managing salient human rights risks ", "Based on this due diligence, examples of human rights issues of particular focus at Apple include: ", "LBody", "Privacy, freedom of expression, and access to information risks ", "Respecting the rights to privacy, freedom of expression, and access to information ", "Promoting diversity, equity, and inclusion, including in our workforce, leadership, product and services development, and our industry ", "Discrimination risks in workforce management and in product and services development ", "Respecting labor and human rights in our supply chain by working closely with suppliers so that people in our supply chain are treated with dignity and respect ", "Respecting human rights through our efforts to protect the planet in how we design, build, and recycle our products, and through responsible sourcing and use of materials", "LI_2", "LBody_5", "Labor and human rights risks in the supply chain ", "Across Apple, teams such as ESCI, EPSI, People, Privacy, and others work to avoid, prevent, mitigate — and where appropriate, remediate — human rights issues and impacts across Apple’s business, including through our commitments to: ", "In addition to our own internal monitoring, we consider reports identifying potential risks from external sources, including international organizations, policy makers, shareholders, civil society organizations, news outlets, customers, individuals in the supply chain or supply chain communities, whistleblower mechanisms, and third-party hotlines. Reports also come through the reporting mechanisms we make available directly to all supplier employees, Apple employees, and the general public. These reports can come to us in any language and can be anonymous. ", "\n Introduction Environment Our People Suppliers Customers Communities Governance Appendix", "A planet-size plan. ", "Environment ", "In this section Our approach Climate change Resources Smarter chemistry ", "Apple’s comprehensive carbon footprint ", "Offsets ", "Emissions categories (% of gross emissions) Corporate footprint ", "1.0 million metric tons avoided ", "Corporate energy efficiency: ", "0.06 million metric tons avoided ", "(Scope 3) ", "22.5 million metric tons ", "net carbon emissions** ", "0.2 million metric tons avoided ", "Gross emissions Avoided emissions Emissions offset ", "The heart of who we are. ", "Our People ", "In this section ", "Values that ", "lead the way. ", "Suppliers ", "In this section ", "Our approach ", "Labor and human rights in the supply chain ", "Health, safety, and wellness ", "Responsible materials sourcing ", "Education and professional development ", "Environment ", "How we work to prevent forced labor in our supply chain ", "Aligning with international frameworks. ", "Design that empowers. ", "Customers ", "In this section ", "Link_66", "Our approach ", "48 ", "Link_67", "Privacy ", "48 ", "Link_68", "Accessibility ", "50 ", "Link_69", "Inclusive design ", "52 ", "Link_70", "Education ", "53 ", "Link_71", "Health ", "54 ", "Link_72", "Caring for customers ", "55 ", "\n Introduction Environment Our People Suppliers Customers Communities Governance Appendix", "A force for good. ", "Communities ", "\n Introduction Environment Our People Suppliers Customers Communities Governance Appendix_4", "Standards that raise the bar. ", "Governance ", "In this section Corporate governance Ethics and compliance Tax payments ", "\n Introduction Environment Our People Suppliers Customers Communities Governance Appendix", "Appendix ", "In this section ", "Link_74", "Awards and recognition ", "74 ", "Link_75", "United Nations Sustainable ", "Link_76", "Development Goals ", "75 ", "Link_77", "Stakeholder engagement ", "77 ", "Link_78", "ESG data summary ", "78 ", "Link_79", "About the report ", "84 ", "Link_80", "Endnotes ", "85 " ]

[ "Link_17\ntext_2\nLink_18\ntext_3\nLink_19\ntext_4\nLink_20\ntext_5\nLink_21\ntext_6\nLink_22\ntext_7\nLink_23\ntext_8\nLink_24\ntext_9\nLink_25\ntext_10\nLink_26\ntext_11", "TBody_3", "TR_3", "TD_49\nTD_50\nTD_51\nTD_52\nTD_53", "lt;1% \nDirect emissions\n(Scope 1)\nlt;1% _0\nElectricity†\n(Scope 2)\n1%\nBusiness travel, commute, work from home, upstream impacts from scope 1 fuels, and third-party cloud services‡\n(Scope 3)\n65%\nProduct manufacturing\n(Scope 3)\n24%\nProduct use_1\n(Scope 3)_0\n9%\nProduct transport\n(Scope 3)_1\nlt;1%\nEnd-of-life product processes\n(Scope 3)_2", "We continue to progress toward our goal of relying solely on responsibly sourced recycled or renewable materials for our products and packaging. \nThe source of the materials we rely on matters to us. We place a clear value on materials that don’t deplete the earth’s resources. As we move toward recycled and renewable content, we’re joined in our efforts by many partners. We look forward to engaging with many others as part of a broader global transition. As we design new products, we continue to source materials responsibly and continue to use materials efficiently and safely.\nOur teams are overcoming many obstacles to creating closed loop supply chains, including material performance and traceability. This is possible through our work with a diverse group of partners. We’ve been able to design a new, 100 percent recycled aluminum alloy that meets our rigorous performance standards. And we’ve improved our ability to track key materials like batteries within our supply chain, end-to-end.\nBarriers to our progress remain — including challenges within our control and those outside Apple’s direct influence. Addressing these requires a collective response. But through collaboration within the material space, we can achieve impact felt beyond our business. The supply chains we’re helping create serve more than just our needs — they help promote the availability of competitively priced, quality recycled and renewable materials across geographies. \nAs we focus on responsible sourcing and the use of recycled content, we continue to engage with multiple industry initiatives. These include our role on the steering committee of the Responsible Minerals Initiative (RMI). This coalition is one of the most commonly used resources for companies — from a range of industries — that are working to address mineral sourcing issues in their supply chains. We are also a board member of the Platform for Accelerating the Circular Economy (PACE) and co-lead the electronics program. PACE is a global collaboration platform for public and private decision makers to share a vision, best practices, and innovations toward a circular economy. Apple is a co-champion of the First Movers Coalition for Aluminum, whose focus is to aggregate demand signals for ultra low carbon technologies and materials. We also collaborate with other industry organizations, including the Aluminum Stewardship Initiative, to promote transparency across supply chains and implement additional commodity-specific auditing and due diligence systems. \nUsing recycled and renewable materials helps lower our carbon footprint, moving us closer to our climate goals. To fulfill the transition to these materials, we’re working with policy makers to support international standards that enable the use of these materials globally.\nLink_59\ntext_44\nLink_60\ntext_45\nLink_61\ntext_46\nLink_62\ntext_47", "Even after a product reaches the end of its life, the materials within it can serve the next generation of products. Each time that we effectively recover materials from end-of-life products, we enable circular supply chains — and make the best use of finite resources. This takes collaboration — with customers who trade in their products when they’re done using them and with recyclers capable of recovering materials effectively from devices. This helps to reduce the need to mine new materials. It also saves the considerable energy expended in extracting and refining materials, driving down emissions and conserving resources.\nOur recycling strategy is a key part of our efforts to create circular supply chains. We’re working to make it easier for customers to recycle our products. We provide or participate in product take-back and recycling collection programs in 99 percent of the countries where we sell products. Our customers can trade in devices they’re no longer using for reuse or recycling at retail locations and through recycling programs offered by local operators. They also have the option to do so online through platforms like Apple Trade In. In 2022, we directed more than 40,000 metric tons of electronic scrap globally to recycling with the help of customer and employee programs. Our customers play an important role in continuing the growth of these programs, and we encourage them to engage in these programs by returning devices after use.\nWe work with best-in-class recyclers to make sure we can maximize the potential of the recycling materials stream, as well as drive our efforts to close the loop on key materials. We define best-in-class recyclers as those capable of recovering materials at high rates, and doing so with the best environmental and safety performance. We verify recyclers’ compliance with our Code and Standards through independent third-party assessments. In addition, we look for our recyclers to maintain regional leading certifications such as Weeelabex, e-Stewards®, or R2.\nAs we expand our partnerships with recyclers across the globe, we’re maintaining the rigorous standards that we require of all suppliers. We assess our recyclers regularly for compliance with labor and human rights, security, and environment, health, and safety (EHS) standards, regulations, and best practices. In 2022, we conducted 61 recycler assessments. We’ve increasingly sought out specialty providers capable of handling specific material streams to increase the quantity and quality of materials, and we’ve seen volumes handled by these suppliers grow by over 70 percent in 2022. This global footprint of recyclers also helps us build a more resilient recycling supply chain and innovate with more suppliers around the world.\nEducation and training can help us improve recovery rates from our products. We’ve invested deeply in this because it provides recyclers with the information to improve efficiency, quality, and capacity. We work with recyclers to continue devising new recycling solutions that can be shared through training and ongoing support. We help these partners develop the ability to disassemble our products and recover as much material as possible while minimizing waste.\nIn 2022, we expanded our Apple Recycler Guides to include certain models of iPhone and the new Studio Display. These guides are developed by our engineering teams to help recyclers optimize recovery and make sure that the processes can be completed using tools and procedures available to a wide range of professional recyclers. The guides provide valuable insight into the recycling process, including recommendations for directing disassembled parts to the best downstream facilities for resource recovery. As we continue to improve material recovery through collaboration, we’re increasing the availability of high-quality recycled content on the market for all. \nThrough the Apple Education Hub, part of our Supplier Employee Development Fund, we’ve also supported efforts to improve recycling capacity, quality, and efficiency with our U.S.-based recycling suppliers with a lean manufacturing educational program. Embracing lean methodologies and management systems can bolster employee engagement, mitigate safety issues, and improve recycling economics.\nBeyond our programs around the world, we continue to explore ways to make e-scrap recycling even more convenient for our customers. Through our membership with Corporate Eco Forum (CEF), we’ve collaborated with Amazon, Dell Technologies, Google, and Microsoft on a doorstep electronics waste recycling pilot program in the U.S. Launched in February 2022, it offers residents in the city of Denver, Colorado, direct pickup of e-waste from their homes upon request. This pilot will enable us to learn more about consumer behavior, with an ultimate goal of making recycling more convenient for users.\nInnovation plays a key role in realizing the potential of recycling — not just for Apple products but throughout our industry. We continue to develop better, more efficient means of disassembling products that maximize material recovery while minimizing waste. Our Material Recovery Lab (MRL), an R2-certified facility in Austin, Texas, focuses on assessing the recyclability of our products, helping inform design decisions that support disassembly and recovery. The MRL’s work has led the way in automated approaches to material recovery with our robots Daisy, Dave, and Taz.\nDave, a robot specializing in disassembling the Taptic Engine, enables the recovery of rare earth magnets as well as tungsten and steel. Taz, which helps recycle modules by separating magnets containing rare earth elements from audio modules, is designed as an alternative to the conventional shredder that many recyclers rely on. While rare earth elements are typically lost in conventional shredders, Taz is designed to access these valuable materials, improving our overall recovery rate.\nWe’re also developing new technologies at our Santa Clara Valley, California, asset recovery center that leverage automation and machine learning to facilitate recycling processes that typically require manual sorting, which can be time-intensive and error-prone. This work aims to create low-cost solutions that our suppliers can deploy to recover more materials, freeing up their employees for more complex tasks that can’t be easily automated. \nThe benefits we’re trying to achieve aren’t strictly resource based. We’re also working to improve the material handling efforts of demanufacturing. In 2022, we began deploying overhead projector-based augmented reality systems to recyclers. This system projects instructions for demanufacturing processes onto the work surface. This innovation is designed to further improve safety, productivity, and efficiency.\nThe greatest opportunities for recycling are yet to come. We’re committed to a long-term approach to recycling innovation, relying on and continually improving current approaches while nurturing new and emerging technologies. By fostering research and development, we can identify opportunities for transformative changes. We invest with this in mind. And we continue to support initiatives that set out to redefine disassembly and material recovery.\nWe’re investing in recycling innovations that can have industry-wide impacts. For several years, we’ve worked with Carnegie Mellon University’s Biorobotics Lab in the School of Computer Science’s Robotics Institute to identify and disassemble e-scrap. This innovation has the potential to enable recyclers to recover the materials at a higher quality. The software from this project will be open source and available to others in the industry that are working to maximize the recovery of recyclable materials. We’ve also worked with the lab to improve the accuracy of disassembly and the recovery of materials through X-ray imaging with RGB imaging. And we’re optimizing our robots’ abilities to handle objects and adjust to contact, enabling them to “feel” by using high-frequency force feedback and machine learning. Through this work, we’re driving toward developing truly intelligent disassembly technology.\nLink_83\ntext_68\nLink_84\ntext_69", "1 \tApple’s carbon footprint boundary is aligned with the Greenhouse Gas (GHG) Protocol framework and includes emissions that are material and relevant to Apple, where data is available. Apple’s carbon footprint includes direct scope 1 emissions; indirect scope 2 emissions from purchased electricity, steam, heating, and cooling; and indirect scope 3 emissions from purchased goods and services, transportation and distribution, business travel, employee commute, product use, and end of life.\n2\tApple is carbon neutral for corporate emissions as of April 2020. Beginning in fiscal year 2022, we’ve expanded our footprint boundary to include scope 3 emissions associated with work from home, third-party cloud services, electricity transmission and distribution losses, and upstream impacts from scope 1 fuels. \n3 \tEmissions from Ramp;D processes and refrigerant leaks. \n4 \tWe estimate the life cycle emissions associated with our use of renewable electricity for our corporate facilities to be about 60,000 metric tons CO2e. We do not currently account for these emissions in our carbon footprint, due to the poor quality of this data. \n5\tBeginning in fiscal year 2021, we’re accounting for scope 2 emissions from the purchase of district heating, chilled water, and steam.\n6 \tBeginning in fiscal year 2020, we updated our methodology for calculating emissions from employee commute to reflect employees working from home during COVID-19. \n7 \tFor a detailed breakdown of carbon offset purchases applied to our corporate footprint, see the carbon offsets table on the following page.\n10 \tBecause we’re committed to accuracy and transparency, we regularly refine our product life cycle assessment model and sources of data. For example, last year we obtained more granular data summarizing in which countries our products are sold and used, resulting in more granularity possible for grid emission factors used in the carbon footprint of the product use phase. The net result was an increase in our fiscal year 2021 carbon footprint. When using the same level of data granularity and model as fiscal year 2021, our product use carbon emissions in fiscal year 2021 would have been about 2.5 percent lower.\n12 \tDue to rounding, our gross and net carbon footprints do not always equal the sum of the subtotals disclosed above.\nLink_133\ntext_91\nLink_134\ntext_92\nLink_135\ntext_93", "TBody_18", "TR_18", "TD_222\nTD_223\nTD_224\nTD_225\nTD_226\nTD_227\nTD_228\nTD_229\nTD_230", "TBody_19", "TR_19", "TD_231\nTD_232\nTD_233\nTD_234\nTD_235\nTD_236\nTD_237\nTD_238", "Table_12", "TBody_12", "TR_12", "TD_140\nTD_141\nTD_142\nTD_143", "Apple is also committed to working toward reaching a 90 percent reduction in emissions from our 2015 baseline by 2050. Attaining this deep decarbonization target will require a different focus and a collective, global effort. Entire industries and economies must decarbonize. And while reaching a 90 percent reduction in emissions is outside Apple’s or any one company’s control, Apple is committed to supporting action as part of this global shift: to push for better policies, invest in new technological innovations, and engage in new and expanded partnerships, both public and private.\nOur goals are ambitious — and they come with many challenges. But we’ve already made progress by cutting emissions across our value chain by over 45 percent since 2015.\nOur philosophy for achieving carbon neutrality follows these principles:\nMatch solutions to sources: For each activity within our value chain, we seek out decarbonization actions that tie to the source of those emissions. For example, we’ll look to reduce emissions from electricity by using renewable or low-carbon electricity and decrease emissions from transportation by using alternative fuels and lower-carbon modes of transport. By matching solutions to carbon sources, we’ll do our part to help decarbonize the economy.\nMake environmental progress good for our business: We’re proving every day that there doesn’t need to be a trade-off between what’s good for the planet and what’s good for business. This means that we seek out climate solutions that are cost competitive, offer a financial return, benefit our customers, or achieve more than one of these outcomes. For example, we’re working with investment managers who are creating investment funds for clean energy and nature-based carbon removal solutions, which aim to deliver both environmental benefits and financial returns. And when we design products to be energy efficient and use recycled content, we view these as product features that add value for our customers. By underpinning our climate strategy with strong business principles and innovation, we aim to harness the power of markets to replicate our solutions at scale, creating the impact necessary to meet global reduction targets.\nExplore all solutions: Reaching our 2030 carbon goal will require scaling proven solutions that are available today, as well as exploring the solutions of the future. This includes facilitating the development of new technologies, like direct carbon-free aluminum smelting, adopting novel financial approaches such as the Apple Restore Fund, advancing policies that support a low-carbon economy, and continuing to invest in research and development to enable decarbonizing our products by 2030.\nBe open: We’re committed to disclosing our carbon footprint as well as our climate strategy and progress. By sharing our approach, we aim to send clear signals to others and invite them to work with us. We also hope to empower our peers in their pursuit of carbon neutrality and engage investors through financing options, such as green bonds. This means sharing both challenges and successes. Our annual Environmental Progress Reports, as well as our response to the global disclosure nonprofit CDP, provide details on our progress.\nSupport underrepresented communities: Low-income and historically marginalized communities too often bear the brunt of the effects of climate change. So we’re pursuing ways to directly support these communities in our climate program — like with the Apple Impact Accelerator, which aims to bolster equity and foster opportunity for Black-, Hispanic/Latinx-, and Indigenous-owned businesses in the environmental sector. We’re advocating for greater access to clean energy, and we’re investing in renewable energy projects in emerging markets. And our carbon removal projects often benefit the livelihoods of local and Indigenous communities.\nLink_29\ntext_14\nLink_30\ntext_15\nLink_31\ntext_16\nLink_32\ntext_17", "TBody_16", "TR_16", "TD_209\nTD_210\nTD_211\nTD_212\nTD_213\nTD_214", "TBody_17", "TR_17", "TD_215\nTD_216\nTD_217\nTD_218\nTD_219\nTD_220\nTD_221", "TBody_20", "TR_20", "TD_239\nTD_240\nTD_241\nTD_242\nTD_243\nTD_244\nTD_245", "TBody_21", "TR_21", "TD_246\nTD_247\nTD_248\nTD_249\nTD_250\nTD_251\nTD_252", "Less means more when it comes to our approach to materials and how we process them. Making our manufacturing processes more efficient creates less waste and helps us make the most of the materials we source. We’re also working to design our products so that they require less material in the first place. Combined, these efforts help reduce emissions from transporting and processing materials. And as we progress toward our 2030 carbon neutrality goal, we continue to investigate new materials and new ways to manufacture efficiently. \nWe’ve continued to improve the carbon efficiency of the integrated circuits that we use in our products — components we’ve prioritized because they’re carbon-intensive. Integrated circuits perform vital functions in electronic devices but require significant energy to manufacture. We also continued our work with the sustainable semiconductor technologies and systems research program of imec, a world-leading research and innovation hub in nanoelectronics and digital technologies, of which we were the first public company to join in October 2021. Our goal in collaborating is twofold: to improve the data associated with integrated circuit production, from end to end, and to use improved data and shared expertise to identify carbon reduction opportunities for the entire integrated circuits industry. And we keep investigating new opportunities for improved efficiency across our product manufacturing processes. In 2022, we continued to invest in research and development projects aimed at: creating less waste in processing materials, reducing machining time and associated energy use, more efficiently transforming material into the shapes we need, and maximizing recovery and reprocessing of manufacturing scrap. Once these improved processes are successfully developed, we plan to work with our suppliers as they deploy them at scale at our supplier facilities.\nAluminum is a great example of Apple’s comprehensive approach: We’re transitioning to recycled content, and where we haven’t yet, we’re moving to low-carbon suppliers and technology innovations to further decarbonize. In 2015, aluminum represented over a quarter of our product manufacturing footprint. Since then, we’ve continued to introduce 100 percent recycled aluminum in the enclosures of Apple products: All iPad models in our lineup use 100 percent recycled aluminum in their enclosures — joining Apple Watch Series 8, Apple Watch SE, MacBook Air, Mac mini, and the 14-inch and 16-inch MacBook Pro computers. In addition, the new Studio Display contains a 100 percent recycled aluminum stand, and the Mac Studio enclosure and Apple TV thermal module both contain 80 percent recycled aluminum. And with iPhone 14, we’ve increased recycled content by using recycled CNC chips with Apple’s strongest aluminum alloy for the first time.\nWe also continue to make progress in how we source recycled aluminum. Our first priority is to recover any of our own scrap at high quality. Then, to augment this, we look to other postindustrial and postconsumer sources for high-quality recycled aluminum, which emits less carbon than newly mined materials. And we’re expanding our sourcing to include postconsumer recycled aluminum from building and construction scrap that meets the high standards that our products require. These emissions reduction efforts have reduced our aluminum-related emissions by 71 percent since 2015 and now represent less than 8 percent of our product manufacturing footprint, compared with 27 percent in 2015.\nIn 2022, we began shipping products with certified recycled steel and expanded our use of certified recycled gold — two materials that typically have significant carbon footprints. We introduced certified recycled steel for the first time in the MacBook Air with M2 chip, which has 90 percent recycled steel in the battery tray. And we significantly expanded the use of certified recycled gold in our products — from the gold plating on the main logic board on iPhone to other product main logic boards and flexible printed circuit boards — increasing recycled gold content from 1 percent in 2021 to approximately 4 percent across all product lines in 2022.\nProduct energy use accounts for 24 percent of our gross carbon footprint — and it has an impact on the individual energy use of each of our customers. This is why we’ve set aggressive targets to reduce our products’ energy usage. We approach this challenge in the earliest phases of design, taking a holistic view of each product — from how efficiently the software operates to the power requirements of individual components. \nLink_38\ntext_23\nLink_39\ntext_24\nLink_40\ntext_25", "The foundation of these innovations is our work in mapping, assessing, and managing the chemicals used in our products and supply chain. We also look at how these materials are used in a product life cycle, from design and manufacturing to end of life. With this knowledge, we can seek out and support the development of safer chemistries that have an impact, and we can contribute to continually improving the overall safety of our products and processes.\nBy focusing on materials early in product development, we create opportunities to innovate improvements throughout the process of creating a product. We assess materials for performance, safety, and environmental impact. These represent our holistic approach to smarter chemistry, allowing us to design for our customers’ needs while creating products that exceed expectations and are safer for use, reuse, and recycling.\nTo achieve these goals, we focus on the process of material selection. This involves choosing the substances incorporated into our product designs and those that our suppliers use to manufacture our products. Our comprehensive chemical profiles of each material provide the basis for each decision. The FMD program documents material information — like composition — for review by our experts so that a substance’s suitability meets our standards before it enters our supply chain. This includes toxicological assessments of each chemical within a material, focusing on those that come into prolonged contact with skin. Each design choice determines the materials included in our product and the chemicals required to make them. Through the CSD program, we look at the conditions in which a material is used so that we can make recommendations that reflect the existing controls around a substance. And we work proactively with our suppliers so that their employees are protected through proper storage, handling, and material application controls.\nOur work considers the impact of materials when our products reach their end of life. We take steps to prevent potential releases into the environment during the recycling process and to protect those involved in recycling our products. This involves monitoring chemistries that may be harmless in small quantities but become more concentrated through recycling processes. And it also entails assessing how potentially harmful substances impact the recyclability of a material to avoid downcycling — use of the material in lower-quality applications — or substances that could make the material unsafe for any use.\nWe also pursue innovation projects that lead to better products. In 2019, we launched a pilot program at a manufacturing location in China as part of our anodizing improvement program with the aim of reducing, and eventually eliminating, potentially hazardous discharge, as well as reducing water and chemical use. As part of the pilot, we employed several water efficiency approaches, including using cascade and counterflow rinsing processes, which helped retain 75 to 85 percent of the water used during metal finishing. This process improvement has the potential to save millions of gallons of freshwater annually when applied at scale.\nIn addition, we advanced our ability to recover acids used in chemical polishing and anodizing. These acids are typically discarded after one use, but we were able to purify and recycle them back into the manufacturing process, reducing consumption by more than 90 percent.This approach has enabled us to reduce the largest source of solid waste from the anodizing process, and at scale could potentially eliminate 4000 tons of waste.\nThe material and process innovations that we develop result from all these efforts. Our work to share information across our supply chain, perform detailed process and chemical assessments, and partner with suppliers on chemical management lays the foundation for improvements. We’re able to better protect those who make and use our products and enable the reuse of key materials. And by keeping harmful chemicals out of our supply chain at the outset, we make it possible for us and others to recover materials for the next generation of products.\nOur strict requirements that govern potentially harmful substances in our products and processes encourage the suppliers we work with to also prioritize safer materials, helping create a market for better alternatives. We’re lending our expertise on safer chemistries to help our suppliers meet the growing demand for safer materials. Prioritizing these materials also means phasing out chemistries that don’t meet our specifications. We’ve approached this across our company and products while investing in safer alternatives to drive change across our industry. The use of safer cleaners today supports the circular supply chains of the future.\nUsing our research and analysis of materials, we’ve collaborated with suppliers to find safer alternatives — including for substances where none currently exist. In those cases, we lend our technical capabilities in material science to work with suppliers to develop entirely new chemistries. We maintain the same high safety, performance, and environmental standards for new alternative materials, submitting them through rigorous testing and evaluation to avoid regrettable substitutions.\nThis work isn’t new to Apple; we’ve been leading in the identification and successful removal of potentially harmful substances since the late 1990s. This process has involved the rigorous assessment of chemicals and the removal of those that don’t align with our goals — in some cases, before removal becomes a requirement and industry standard. We’re committed to phasing out our use of PFAS and engaging with all our supply chain partners to restrict PFAS from our products and manufacturing processes. While our analysis indicates that PFAS used in our products are safe during product use, we felt it was important to broaden our scope to consider manufacturing along the supply chain. We’re prioritizing our phaseout activities in applications that result in the highest volumes of PFAS reductions and the most meaningful environmental impact. We’re pursuing our phaseout in three steps: compiling a comprehensive catalog of PFAS uses in our products, identifying and developing non-PFAS alternatives that can meet our performance needs, and confirming that non-PFAS alternatives align with our human health and environmental goals.\nOur work around smarter chemistry helps facilitate the transition to safer alternatives that are accessible to others in our industry. The criteria we set for chemicals — and how our suppliers use them — help establish even more stringent standards around health and safety across the electronics industry. We collaborate with standard-setting bodies, trade associations, and NGOs to achieve this — developing tools, standards, and mechanisms to drive the identification and adoption of smarter chemicals throughout our supply chain.\nWe’ve focused on cleaners and degreasers — building out a safer cleaners innovation ecosystem through multiple efforts. In 2022, we continued our role as a founding signatory of the Toward Zero Exposure program from the Clean Electronics Production Network (CEPN). Led by the NGO Green America, CEPN is a multi-stakeholder initiative to accelerate companies’ efforts to eliminate workers’ exposure to hazardous chemicals and to raise awareness of the need to improve chemical management practices across the global electronics manufacturing industry.\nAs a signatory, we report on the progress we’ve made to remove nine process chemicals from our supply chain that have been collectively identified as priorities for replacement at our final assembly sites. We’re also accountable for our efforts to protect workers from exposure to potentially harmful substances. We prioritize this work by emphasizing effective engineering solutions and administrative controls across manufacturing processes. While personal protective equipment is essential and foundational to protecting people, we focus on employing safer alternatives from the start, and we support that with PPE as a measure to eliminate exposure to potentially harmful chemicals.\nIn 2022, we continued our collaboration with IPC, the premier global electronics standard-setting body, by drafting and helping launch IPC-1402, Standard for Green Cleaners Used in Electronics Manufacturing. This standard resulted from work over the past two years with the Green Cleaners for Electronics Manufacturing task group, where Apple has served as a chair working with more than 20 industry partners. This new standard will help suppliers across the electronics industry select cleaners that are safer for employees and the environment. Last year, Apple received the IPC Stan Plzak Corporate Recognition Award for our work on this effort and our contributions to the industry.\nWe continued to partner with ChemFORWARD — a nonprofit organization committed to creating broad access to chemical hazard data and a registry of cleaners — to make it easier for suppliers to choose safer alternatives. We also supported the RBA in producing a comprehensive technical guide on responsible chemical management, as well as over 20 hours of related training content to educate millions of workers across thousands of companies about controlling occupational exposures to hazardous chemicals.", "An important part of leadership is the responsibility to influence change — whether through policy advocacy or direct engagement with groups invested in issues. Collective action provides the best means to achieve results on pressing environmental issues. When we take a proactive role in sharing our experiences and contributing to collaborative efforts on our areas of focus and expertise, we can better realize the goals on climate, resources, and smarter chemistry that we share with other stakeholders.\nPolicy is instrumental in effecting change across industries. Apple supports climate and environmental policy through our actions and stakeholder engagement. This also involves actively advocating for policies that advance environmental objectives — and support the Paris Agreement — by evaluating the positions of our industry partners to align business goals to address climate change.\nFor example, in the U.S. in 2022, we filed comments with the Federal Energy Regulatory Commission (FERC) to encourage more rapid integration of renewable energy to the transmission grid, a key bottleneck to renewable energy deployment. And Apple, joined by other companies, submitted an Amicus Brief, urging the Supreme Court to uphold the U.S. EPA’s authority to regulate greenhouse gases from power plants. \nWe engage in dozens of industry initiatives so that we can support beyond our own operations. These allow us to share knowledge and discover additional pathways to advocate for change. Through partnerships and coalitions, we contribute to various industries by sharing proprietary tools and standards and pursuing policy objectives that drive toward our shared goals. This year, with IPC, a global electronics trade association, we developed and released IPC-1402, a new standard for chemical cleaners intended to support safer, greener practices among manufacturers. \nEngagement with trade and industry associations helps to achieve alignment with environmental and climate policy in our collaborative efforts. We’re deepening our engagement on climate policy with our U.S. federal trade associations. As part of this process, we’re evaluating relevant trade association positions on climate and identifying specific areas of misalignment with Apple’s values and principles on climate change. We then work with our trade associations to reduce areas of misalignment. \nCollective action matters when it comes to taking on environmental challenges. We make public commitments alongside our partners to make our support clear and signal the change we are working to create. We’re transparent about the progress we make against these commitments, so that we and our partners can be accountable for results. The work we do with others yields tangible results across our environmental goals — and it provides a catalyst for others to take action.\nAn example of this is our commitment to 100 percent renewable electricity with members in markets across the globe through RE100, an energy initiative aiming to scale zero carbon grids by uniting the world’s most influential businesses committed to transitioning their electricity use to entirely renewables. \nThrough Race to Zero and America is All In, we’re tracking our shared commitment to support the Paris Agreement and efforts to achieve robust near-term emissions targets. As a founding member of the Asia Clean Energy Coalition — launched in 2022 at COP27 — we support accelerated corporate renewable electricity procurement in Asia, as part of a just and equitable energy transition in the region.\nWe remain committed to addressing issues beyond climate change, including chemical safety and reducing the amount of plastics in our products. As part of the Toward Zero Exposure program with the Clean Electronics Production Network (CEPN), we’re working to address health and safety challenges in the electronics supply chain with other stakeholders. We share our pledge to eliminate plastics from our packaging by 2025 with the Ellen MacArthur Foundation.\nLink_102\ntext_87\nLink_103\ntext_88\nLink_104\ntext_89", "Link_125\nLink_126\nLink_127\nLink_128\nLink_129\nLink_130\nLink_131", "Table_0", "TBody_0", "TR_0", "TD_28\nTD_29\nTD_30", "Link_146\nLink_147\nLink_148\nLink_149\nLink_150", "In 2020, we reached carbon neutral for our corporate operations, but we always knew we could do more. So we set an even more ambitious goal — to make our products carbon neutral by 2030, across our entire supply chain and the lifetime energy use of our customers’ devices. Teams across Apple quickly got to work, and thanks to their innovations, we’ve made extraordinary progress.\nIn this year’s report, you’ll find the most detailed portrait yet of where we are today and where we’re headed. Here’s the big picture: Since 2015, we’ve reduced our emissions by over 45 percent. We did it while reaching more Apple users than ever before. And, in doing so, we demonstrated that the choice between a thriving business and a thriving planet is a false one.\nThis was also the year we called on our suppliers to accelerate their work to address their emissions. We’ve sent a clear message that the companies who manufacture our products must decarbonize their entire Apple footprint by 2030, including the use of 100 percent renewable electricity. And today, over 250 of our suppliers — accounting for over 85 percent of Apple’s direct manufacturing spend — are a part of our Supplier Clean Energy Program.\nWe share our progress — and our goals — because transparency and accountability are two sides of the same coin. We do the work and we show our work, because we want to be the ripple in the pond that creates a broader change.\nThis year, we’ve also made it easier to understand the carbon impact of your Apple devices, and the extraordinary steps we’re taking to reduce their emissions. In our Product Environment Reports, you can learn about recycled gold in your iPhone, the energy demands of your iPad, and the packaging around your Mac. We’re transforming so many aspects of the way we make our technology, and with our Product Environment Reports, you’ll see where we’ve made progress and where the hard work remains.\nOne thing is clear: We’re closer than ever to the day you can hold your Apple device and be confident in the knowledge that it has net-zero carbon impact. There are few companies that can make that claim — let alone ones that set our high standards and transparently show their progress along the way.\nAs we move closer to our goals, we’ve continued to push the pace by bringing new clean energy online to power our supply chain. And we’re investing in a growing number of renewable energy projects to balance the electricity our customers use to charge their devices.\nRecycled materials are also a key focus of our innovations, and another way we’re driving down our emissions. Today, about 20 percent of the materials in our products are from recycled or renewable sources. Our goal is to one day reach 100 percent, and to end our reliance on mining altogether. Where we continue to extract materials, we maintain the highest standards in our due diligence and respect for human rights. And we’re accelerating our work with new goals to use 100 percent recycled cobalt, tin, gold, and rare earth elements in key components by 2025. The strides we’re making play a huge role in driving down our emissions even further, reducing our reliance on energy-intensive mining, smelting, and refining.\nWe’ll keep pursuing creative ways to reduce our footprint, and only use high-quality carbon offsets to balance emissions we can’t zero out. That’s why we launched the Restore Fund, which aims to help businesses invest in high-quality, nature-based solutions that restore the forests, wetlands, and grasslands that remove carbon from our atmosphere.\nEquity remains a central focus of our investments in clean energy and green technology. We continue to grow our Impact Accelerator, which invests in the next generation of innovative, diverse entrepreneurs in fields like clean energy, recycling, and green chemistry. We’ve also expanded our Power for Impact program, which brings renewable projects to communities around the world — from neighborhoods in rural South Africa to underresourced schools in the Philippines. We believe the best way to fight climate change is to engage communities on their front lines, and every day, we put the action to those words.\nI’ve worn a few different hats over my career — including as Administrator of the U.S. Environmental Protection Agency, and leading this work at Apple. It’s taught me that tackling climate change is possible only when we bring government, industry, and communities together. We have to meet a global challenge with global solutions — solutions that center on people.\nI have so many talented, passionate colleagues who share in this mission. Thanks to their tireless work, we’ve hurdled barriers that once seemed impossible to clear. We have no illusions about the challenges ahead, but whatever comes, we’ll keep marching forward.\nApple is on a journey — and we’ll share the road with as many people as we can. We hope you’ll join us.\nLisa Jackson", "While our data centers, retail stores, and offices all use 100 percent renewable electricity, we are focused on reducing the energy we use in the first place. We consider natural gas and electricity usage at each of these types of sites — as well as research and development facilities — auditing how we perform and, when needed, using best practices for energy management to reduce our loads. And we tailor the design of new buildings to our occupants’ and lab users’ specific needs. This approach helps us use our facilities efficiently and productively.\nExisting buildings: There are significant opportunities to save energy in retrocommissioning buildings that Apple already occupies or operates, including energy-intensive facilities like data centers. We audit the performance of buildings around the world, and then deploy identified reduction measures. Retrocommissioning focuses on building controls to emphasize energy use reduction and operational efficiency. We are prioritizing reducing natural gas usage and replacing natural gas equipment with electrical equipment. While we’ve already transitioned to renewable electricity for our facilities, minimizing natural gas is also an important element of working toward decarbonization. We are focused on reviewing and benchmarking our most natural gas–intensive buildings to look for reduction and fuel switching opportunities. \nData centers: Data centers are traditionally energy-intensive, requiring significant resources to cool the heat-generating equipment. That’s why we’re continuously monitoring and improving upon the controls for our cooling systems. This retrospective view often enables us to increase cooling capacity of our existing facility, thereby maximizing the amount of servers within our data center footprint. \nIn 2022, we further improved energy efficiency at data centers by deploying our own server design, developed with a focus on energy and computing efficiency, resulting in over 56.7 million kilowatt-hours per year in energy savings. This work builds on previous efficiency efforts in our data centers, including developing a specification requiring our servers to be powered by high-efficiency power supplies — exceeding even the efficiency requirements for ENERGY STAR certification — which was deployed to hundreds of thousands of servers in 2021, resulting in over 4 million kilowatt-hours per year in energy savings.\nNew facilities: When designing new facilities, we incorporate energy efficiency principles early in the process. We look at each location’s conditions, planning for local temperature, humidity, and light. As each site becomes operational, we monitor how well we’re performing and make needed adjustments. For example, in designing our new campus in Austin, we put in a water-cooled air-conditioning system, rather than air-cooled, because of its increased energy efficiency. At the same time, it was critical to consider the water stress of the area, therefore the cooling system will be supplied with recycled water, which will also be used for toilet flushing. The first phase of our work on the Austin campus is saving 5.7 million kilowatt-hours per year.\nRetail stores: In 2022, we were especially focused on our efficiency measures in European retail stores as the region navigated energy shortages. Beyond aligning with all mandates in place, we established a task force to exceed them, identifying and rolling out additional measures — related to LED lighting, temperature, and even keeping doors closed — in retail stores across the continent.\nMeasurement and accountability: Measurement is critical to maintaining building energy performance. We continue to develop our system of energy tracking and benchmarking, which includes data from utility meters that continuously monitor 15-minute electricity and daily natural gas energy consumption. This method helps us identify performance issues at our sites early. We can then take corrective action to restore building system efficiencies and actively manage our energy footprint.\nFinally, across Apple, “energy champions” play an important role in achieving our efficiency outcomes. These employees sit in facilities roles across the company, proactively identifying opportunities for efficiencies and bringing their teams and colleagues along to put them in action.\nIn 2022, our energy efficiency program avoided  69.4 million kilowatt-hours of electricity, which includes savings from the efficient servers, and 161,000 therms of natural gas per year through adjustments made to 9.3 million square feet of new and existing buildings. Together, these new initiatives reduced total energy use by 4 percent in the targeted buildings (including data centers with high loads) and will avoid an additional 27,500 metric tons of CO2e per year. Combined with ongoing energy savings from past years, we saved over 89,000 metric tons of CO2e in 2022.\nThe manufacturing of Apple products accounts for 65 percent of Apple’s gross carbon footprint. To address this impact, we’re collaborating closely with our suppliers to prioritize energy reductions as an important element of our strategy. Together, we work to use clean energy as efficiently as possible at every point in our supply chain, creating leaner, more efficient factories all over the world. The Supplier Energy Efficiency Program, launched in 2015, exists to help our suppliers optimize their energy use. Implementing energy efficiencies reduces the energy intensity of manufacturing, which translates to reduced carbon emissions.\nEnergy efficiency gains and subsequent carbon savings are often found at the facility level — for example, by replacing outdated and inefficient lighting and equipment or capturing waste heat for reuse. Honing manufacturing processes using smart controls and monitoring can also offer opportunities to complete the same work with less electricity. \nWe support our suppliers’ energy efficiency projects by helping to identify optimization opportunities and design solutions through assessments, and providing extensive education and training opportunities that include technical assistance and connections to external funding for energy efficiency projects, which can be an obstacle to making improvements. As suppliers become more knowledgeable in this space, they become more able to tackle deeper decarbonization challenges.\nWe continue to expand the support we provide to suppliers as they build more energy-efficient systems, through new training and educational materials, and increased access to funding opportunities — like the Asia Green Fund, which Apple launched in 2019 to help provide energy efficiency expertise and finance capital-intensive energy efficiency projects. In 2022, $8.9 million of investments have been made in supplier efficiency projects using the Asia Green Fund.\nIn 2022, more than 100 supplier facilities participated in our energy efficiency program, achieving over 1.6 billion kilowatt-hours of electricity savings and about 2,039,000 MMBtu in additional energy savings, which together avoided over 1.3 million metric tons of CO2e, representing a 17 percent increase since 2021.", "Aluminum\nCobalt\nCopper\nGlass\nGold\nLithium\nPaper\nPlastics\nRare earth \nelements\nSteel\nTantalum\nTin \nTungsten\nZinc", "Our requirements provide clear restrictions on potentially harmful materials and chemicals, including those that are restricted. Through our assessment system, we work so that only materials that meet our stringent requirements are used in Apple products. The data that we gather on chemicals and our rigorous assessments allow us to make informed decisions for chemical management, for the safety of those who use, make, and recycle our products. These decisions also help make the materials recovered from our products at end of life safer for reuse in new products, enabling circular supply chains.\nWe continue to evolve the RSS with new chemicals and restrictions based on the latest scientific research and standards, drawing from regulations, international standards, and voluntary requirements. Many of the specification’s restrictions exceed the most stringent local regulatory requirements in order to protect human health and the environment. The specification designates restricted substances and requires reporting on additional substances. We’ve updated and expanded chemical restrictions that, in many instances, surpass current regulatory restrictions. Most recently, we’ve added perfluorohexanesulfonic acid (PFHxA) — which is a subset of the larger group of PFAS — phenol, isopropylated, phosphate (3:1) (PIP 3:1), and several skin-sensitizing substances well ahead of regulatory restrictions.\nOur Green Chemistry Advisory Board provides feedback on key initiatives, including potential updates to the RSS. The advisory board is an independent group of leading researchers and academics. Their diverse experience and perspectives help us lead the way to protect our customers and those who make or recycle our products.\nWe evaluate the safety of our products and materials through chemical analyses at our Environmental Testing Lab. Our chemists test materials to monitor compliance with our specifications. And the lab continues to grow in its mission and capacity as we expand our testing facilities with new technologies to conduct chemical analysis while expanding our FMD and CSD programs. Our teams also review test reports from suppliers to evaluate substances against the Regulated Substances Specification and Restricted Chemicals for Prolonged Skin Contact Materials specification. In 2022, we performed toxicological assessments on over 1300 new materials to proactively evaluate and eliminate potentially harmful substances from our products.\nThe data that we collect from our disclosure programs drives our assessments. We’re able to generate comprehensive assessments like GreenScreen®, a methodology that we use to gauge the impact of chemicals on individual health and the environment based on 18 criteria. We develop toxicological profiles on new chemicals, using both scientific literature and internal assessments. These profiles detail the impacts of each chemical, providing data that allows us to evaluate the safety of the use of a substance in a particular product. In 2022, we continued to expand the scope of biocompatibility testing beyond individual materials to include modules and whole products. Through this work, we have an even more comprehensive view of each material and the impact that assembly has on safety. We perform toxicological analysis of the materials in our products to help guide our material safety guidelines. The information that we share through material specifications benefits our suppliers and those that we collaborate with in the industry.\nWe’re making an immediate impact in our efforts to protect human health and the environment through our approach to the application of cleaners and degreasers. These substances account for some of the highest-use materials at final assembly sites. Regulators and environmental health and safety organizations have focused considerable attention on the chemistries of cleaners and degreasers. We’re investing in the due diligence required to identify preferred alternatives for use by suppliers and others in the industry.\nWe now proactively provide our suppliers with a list of cleaners and degreasers that are safer to use. In 2022, we approved 58 safer cleaners for use in our supply chain, bringing the total number of safer cleaners we’ve approved over the past three years to 133. Each of these cleaners has gone through a rigorous independent assessment against a comprehensive set of criteria.\nOur efforts have had a direct impact on health and safety — and they have the potential to change how our industry operates. We’re promoting the use of safer alternatives for process chemicals in our supply chain by making it easier for suppliers to select preferred substitutions from the start. All our final assembly sites have used only safer alternative cleaners and degreasers, as defined by Apple, since 2018. We’ve since expanded this work to the component manufacturers who create modules used in final assembly, helping them identify and implement opportunities to use safer alternatives in their operations. In 2020 and 2021, we received the EPA Safer Choice Partner of the Year Award for our work to scale the use of safer process chemicals and protect those working in our supply chain.\nLink_98\ntext_83\nLink_99\ntext_84\nLink_100\ntext_85", "Apple Inc. is committed to protecting the environment, health and safety (EHS) of our employees, contractors, and customers in the design, research, manufacture, distribution, and use of our products and services and the global communities where we operate.\nWe recognize that by integrating sound EHS management practices into all aspects of our business, we can offer technologically innovative products and services while conserving and enhancing resources for future generations.\nApple strives for continuous improvement in our EHS management systems and in the environmental quality of our products, processes, and services.\nMeet or exceed all applicable EHS requirements.\nWhere laws and regulations do not provide adequate controls, apply higher standards to protect human health and the environment.\nDesign, manage, and operate our facilities safely, promote energy efficiency and renewable energy, and protect biodiversity and the environment.\nEncourage contractors, vendors, and suppliers to provide safe working conditions, treat workers with dignity and respect, act fairly and ethically, use environmentally responsible practices, and have effective programs for the control of environmental aspects, wherever they perform services for Apple.\nSupport and promote sound scientific principles, practices, and public policy initiatives that enhance environmental quality, health and safety performance, and ethical sourcing of materials.\nStrive to create products that are safe in their intended use, conserve energy and materials, and prevent pollution throughout the product life cycle, including design, manufacture, use, and end-of-life management.\nPursue continual improvement through the evaluation of our EHS performance by monitoring ongoing performance results and through periodic management reviews, as well as a commitment to correcting EHS nonconformities.\nEnsure that all employees are aware of their role and responsibility to fulfill and sustain Apple’s EHS management systems and policy by providing training and tools in the user’s primary language.\nLuca Maestri\nSenior Vice President and CFO\nFebruary 2023\nLink_151\ntext_102", "Link_2\nLink_3\nLink_4\nLink_5\nLink_6\nLink_7\nLink_8\nLink_9\nLink_10\nLink_11\nLink_12", "In October 2022, we urged our worldwide supply chain to decarbonize their entire Apple-related footprint by 2030, including their scope 1 and 2 emissions associated with Apple production. We also communicated that progress toward these goals will be a crucial part of the criteria we consider when awarding future business.\nIn 2023, Apple announced \na commitment of additional funds — up to $200 million — to expand the Restore Fund to be managed by Climate Asset Management, a joint venture between HSBC Asset Management and Pollination. The new investment will broaden the portfolio of nature-based projects, including agricultural and agroforestry projects, that scale up carbon removal while aiming to achieve a financial return on investment.\nThis year, we’ve evolved our existing water stewardship strategy into a holistic, enterprise-wide approach that addresses water availability, quality, and equity. Our five-pillar approach is grounded in understanding the local conditions of the watersheds in which we operate.\nIn 2022, plastics accounted for only 4 percent of our packaging — down from 21 percent in 2015 — marking significant progress toward our goal to eliminate plastics from our packaging by 2025.\nIn 2022, Apple continued to serve as chair of the Green Cleaners for Electronics Manufacturing task group — along with more than 20 industry partners — and submitted the draft version of IPC-1402, Standard for Green Cleaners Used in Electronics Manufacturing, for public review. This new standard will help suppliers across the electronics supply chain select cleaners that are safer for employees and the environment.\nThe Green Chemistry amp; Commerce Council awarded Apple the 2022 Impact Award for our commitment to sustainable chemistry and the transparency we’ve demonstrated in our smarter chemistry goals and progress.\nApple welcomed the second cohort of Black-, Hispanic/Latinx-, and Indigenous-owned businesses on the cutting edge of green technology and clean energy to participate in Apple’s Impact Accelerator — a unique program designed to expand opportunities within Apple’s supply chain and beyond. \nLink_14\ntext\nLink_15\ntext_0\nLink_16\ntext_1", "As we grow, we continue to bring new renewable electricity projects online around the world. In the long term, we believe that these projects provide more cost-effective energy with less price volatility. Renewable electricity can offer a competitive advantage by providing power to our operations, as well as to those of our suppliers, with greater control over energy supply and reduced exposure to cost fluctuations. And supporting our suppliers to adopt renewable energy technologies helps put them in a unique position to drive environmental action in their respective regions and significant progress toward our goal of carbon neutrality by 2030.\nUltimately, we find ways to optimize energy use, and we seek renewable sources to supply that energy in support of our goal of 100 percent clean electricity across our operations, manufacturing supply chain, and charging of Apple products. With the renewable energy that we source, we aim to achieve positive impacts. Before we engage in an energy project, we consider its potential environmental and social impacts. When possible, we focus on creating new renewable electricity projects, going above and beyond what might be available on the local grid. We also follow stringent assurance standards21 to verify our clean energy projects.\nOur retail stores, data centers, and offices around the world currently source 100 percent renewable electricity. We’re proud of this accomplishment — and as we grow, we’re working diligently to maintain this benchmark. We’ve focused our efforts to source renewables around several key pillars: creating new renewable energy projects, undertaking projects that deliver clear benefits to local communities, and supporting renewable energy innovations.\nNew renewable electricity projects require investment — whether in the form of direct ownership, equity investments, or long-term power purchase agreements. In total, Apple-created renewable sources account for about 90 percent of the renewable electricity that our facilities use — currently around 1.5 gigawatts.\nApple-created projects include:\nWe’ve continued to pursue innovations in how we create and use renewable electricity, including through investments in energy storage.\nTo help address the intermittency in renewable electricity production, we’ve invested in utility-scale storage in California and in research on new energy storage technologies. The California Flats storage project — an industry-leading grid-scale battery energy storage system capable of storing 240 megawatt-hours of electricity — became operational in 2021. This project supports the 130-megawatt California Flats solar farm, which provides most of our renewable energy in California, by storing excess energy generated during the day and deploying it when it’s most needed.\nWe’re also continuing to support biological methanation research at Aarhus University, Denmark, which explores the production of synthetic methane for storage in the existing gas grid. In this process, bacteria consumes both hydrogen produced from excess renewable energy and captured carbon dioxide to produce methane, the principal component of natural gas. Methane produced from renewables is a versatile energy carrier that can be used as a fuel source in households, industry, and transportation.\nLink_47\ntext_32\nLink_48\ntext_33", "Several Apple programs support these efforts. Our FMD program maps the materials and their chemistries in our products, while our CSD program tracks the materials used to manufacture our products. We drive our supply chain partners to collect in-depth information on the chemicals they use, including the purpose for their use, the amount consumed, and how the chemicals are being applied, stored, and handled. We also work closely with our partners to review the steps being taken to protect their employees.\nWe have criteria for the performance needs, environmental impact, and safety of the materials that we use. Our goal is to identify material chemistries that meet these standards. We examine the effects of material chemistries across a product’s life — from design and manufacturing to the customer experience and, ultimately, recycling and recovery. Through early engagement and effective data collection, we’re able to develop a comprehensive view of each material, and its chemistry, in support of our health and environmental goals.\nWe’re leading in these efforts. With our partners, we’re engaged in the work required to understand the chemical composition of the materials in our products, as well as the chemicals and materials used during manufacturing. Close collaboration with our partners allows us to account for the materials used across our supply chain. This information informs our decisions when it comes to health and environmental risks. The way that we effectively collaborate with our partners can help others in our industry take their own steps toward eliminating potentially harmful chemicals in their products and manufacturing processes. This progress across our industry supports our effort to build responsible circular economies at scale.\nGood data is fundamental to delivering safer products. We rely on detailed and comprehensive information to inform our decision-making on material chemistries. The FMD program, launched six years ago, is integral to this process. It aims to catalog and map each chemical in the materials used in our products. Material manufacturers are at the center of these efforts. They provide thorough reporting on material compositions from deep within our supply chain — proprietary data that’s shared through our innovative and secure data collection system. This system enables us to make informed choices about the materials that are used. For iPhone, iPad, and Mac products released in 2022, we collected detailed chemical information of 91 percent of each product by mass, on average. For the Apple Studio Display, we collected information on more than 93 percent of the product by mass.\nOur suppliers are required to participate in the program. Collectively, they share information on thousands of materials used to manufacture our products. To make this process easier, we’ve implemented an advanced collection system for suppliers with access to a library of more than 47,000 materials, which have been researched and validated by Apple. Our suppliers use this materials library to select the materials they use in our products. If a material that our supplier uses isn’t yet listed in our library, we authenticate the new material with documentation from the manufacturer that provides it.\nThe FMD program includes tens of thousands of parts and assemblies across our product lines. We prioritize high volume materials and those that come under prolonged skin contact — for which we look closely at biocompatibility. The program helps address a challenge faced across our industry: the lack of visibility into the chemical composition of materials. To reduce potential toxicological risk and pursue opportunities to develop better chemistries, we need deep knowledge of the materials that are used. Through the program, we’re able to identify these opportunities to improve and contribute to our health and environmental goals.\nThe comprehensive materials library helps inform decisions across our product life cycles. It drives better material selections by our supply chain partners through the RSS, and it provides a foundation for assessing the materials that we specify, how our products are manufactured, and, eventually, how they’ll be recycled. We’re using innovative approaches to this process, including machine learning to digitize data from chemical tests so this information can be more easily assessed. And we’re finding ways to share this information by supporting the development of industry standards that will help encourage the exchange of data on materials. These efforts support our goals of improving the safety of our products and the broader electronics industry and beyond.\nWe prioritize the health and safety of the people in our supply chain. The Apple Supplier Code of Conduct and Supplier Responsibility Standards outline our requirements for our suppliers in the areas of health and safety, labor and human rights, environment, ethics, and management systems. We also account for how chemicals are selected and managed within our supply chain — and the impact this can have on people working in our supply chain.\nDetailed and accurate information drives this process, including which chemicals our suppliers use as they make our products and how they store, handle, and consume each one. Through the CSD program, suppliers are required to provide this data as part of a rigorous disclosure process. With a detailed chemical inventory from our suppliers, we can support our supply chain partners in identifying risks and opportunities to implement safer alternatives. \nIn 2022, more than 1000 supplier facilities shared their chemical inventories as well as their storage and control information through the CSD program, including suppliers representing the majority of Apple’s direct spend. This extensive reporting provides direct insights into how our suppliers manage their chemical inventories and practices. And through this program, we’ve identified more than 19,000 unique materials and chemicals used in manufacturing process. All these efforts contribute to a safer work environment for people across our supply chain.\nWe’re supporting our suppliers in their efforts to meet our requirements. And we’ve created systems for our suppliers to learn about our material specifications, track and assess the materials they use, and regularly communicate material usage. This also helps our suppliers meet global standards and regulations governing their operations. The FMD and CSD programs require suppliers to gather, understand, and share information on materials they’re using — a requirement beyond regulatory requirements.\nWe support supplier engagement with these programs — and the RSS — through ongoing training. This continued engagement is central to our partnership and to our shared efforts to promote smarter chemistry in our products and processes. Since 2020, our suppliers in China worked under the new regulations governing the use of materials containing volatile organic compounds (VOCs). And we went even further to support compliance by assessing and qualifying over 3500 low-VOC materials for use, helping our suppliers transition to these alternatives. In 2022, we continued to provide additional support for suppliers through trainings on the new regulations, which were attended by more than 800 participants. By deploying a VOC specification worldwide, we’re also helping drive adoption of low-VOC alternatives around the world. And we’re working with our suppliers to identify and develop materials that meet the current and upcoming complex per- and polyfluoroalkyl substances (PFAS) regulatory requirements.\nThese programs, along with the RSS, allow us to engage with suppliers through ongoing training. This fosters our partnerships and shared efforts to promote smarter chemistry in our products and processes.", "We track our environmental progress based on Apple’s fiscal year. All references to a year throughout the report refer to Apple’s fiscal years, unless “calendar year” is specified. Apple’s fiscal year is the 52- or 53-week period that ends on the last Saturday of September.\nThe report does not cover all information about our business. References in this report to information should not be construed as a characterization regarding the materiality of such information to our financial results or for purposes of the U.S. securities laws. While certain matters discussed in this report may be significant, any significance should not be read as necessarily rising to the level of materiality used for the purposes of complying with the U.S. federal securities laws and regulations. The information covered by the report contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding our environmental goals, commitments, and strategies and related business and stakeholder impacts. Forward-looking statements can be identified by words such as “future,” “anticipates,” “believes,” “estimates,” “expects,” “intends,” “plans,” “predicts,” “will,” “would,” “could,” “can,” “may,” “aim,” “strive,” and similar terms. These statements involve risks and uncertainties, and actual results may differ materially from any future results expressed or implied by the forward-looking statements.\nThese risks and uncertainties include, without limitation, any failure to meet stated environmental targets, goals, and commitments, and execute our strategies in the time frame expected or at all, global sociodemographic and economic trends, changing government regulations, technological innovations, climate-related conditions and weather events, our ability to gather and verify data regarding environmental impacts, the compliance of various third parties with our policies and procedures, and our expansion into new products, services, technologies, and geographic regions. More information on risks, uncertainties, and other potential factors that could affect our business and performance is included in our filings with the U.S. Securities and Exchange Commission, including in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of the company’s most recently filed periodic reports on Form 10-K and Form 10-Q and subsequent filings. Further, from time to time we engage in various initiatives (including voluntary disclosures, policies, and programs), but we cannot guarantee that these initiatives will have the desired effect. We assume no obligation, and expressly disclaim any duty (including in response to new or changed information) to update any forward-looking statements or information, which speak as of their respective dates. Readers should not place undue reliance on the forward-looking statements made in this report. Moreover, many of the assumptions, standards, metrics, and measurements used in preparing this report continue to evolve and are based on assumptions believed to be reasonable at the time of preparation, but should not be considered guarantees. Given the inherent uncertainty of the estimates, assumptions, and timelines contained in this report, we may not be able to anticipate whether, or the degree to which, we will be able to meet our plans, targets, or goals in advance.\nLink_152\ntext_103\nLink_153\ntext_104\nLink_154\ntext_105\nLink_155\ntext_106\nLink_156\ntext_107", "Carbon removal projects take carbon dioxide out of the atmosphere and store it in long-term carbon sinks, whether nature-based — like forests, wetlands, and grasslands — or geologically, in formations such as saline aquifers or other suitable geological sites. In addition to removing carbon, nature-based carbon removal projects also offer important ecological and social benefits, such as preserving biodiversity and enhancing the resilience of ecosystems while often providing economic development opportunities for local communities.\nThe earth’s trees, plants, and soils provide some of the greatest capabilities to remove and store carbon from the atmosphere. Carbon credits provide an opportunity to invest in these solutions, but carbon markets haven’t yet scaled to remove the carbon needed to limit global warming to 1.5° C. That’s why we’re expanding nature-based investments to support our goal of achieving carbon neutrality across our full product life cycle by 2030. \nIn 2021, we partnered with Conservation International and Goldman Sachs to launch the Restore Fund, which has closed over $100 million in projects that forecast to remove over one million metric tons of carbon starting in 2025. This fund is unique because it aims to change carbon removal from a cost to a potentially profitable investment. By creating a fund that generates both a financial return as well as real and measurable carbon impact, we aim to drive broader change — encouraging capital investment in carbon removal around the globe.\nThe first phase of our innovative fund has focused on blending responsible forestry practices with carbon removal. We’re working with forestry managers to create sustainably managed forests that are optimized for both carbon and wood production in order to create revenue from timber and generate high-quality carbon credits. The projects also seek to maximize environmental impact, including carbon, hydrology, and habitat restoration. In October 2022, Apple announced three new projects through the Restore Fund. In partnership with Conservation International and Goldman Sachs, Apple has invested with three high-quality forestry managers in Brazil and Paraguay with the goal of restoring 150,000 acres of certified sustainable working forests and protecting around 100,000 acres of native forests, grasslands, and wetlands. Together, these initial forestry projects are forecast to remove one million metric tons of carbon dioxide from the atmosphere starting in 2025. \nTo improve the accuracy of monitoring, reporting, and verification of the projects’ carbon removal impact, Apple is deploying innovative remote sensing technologies using Space Intelligence’s Carbon and Habitat Mapper and Upstream Tech’s Lens. Using high-resolution satellite imagery from Maxar and other providers, this initiative enables us to view detailed habitat and forest carbon maps for our Restore Fund projects. Through our engagement with the MIT Climate amp; Sustainability Consortium, Apple is jointly funding research with PepsiCo and Cargill on improving the measurement of soil carbon in nature-based carbon removal projects. And Apple is separately exploring the use of LiDAR data using iPhone to improve field measurements of forest carbon.\nBased on our learnings with these projects and the growing global need for more nature-based solutions, Apple announced an expansion of the Restore Fund in 2023. Apple has committed additional funds — up to $200 million — that will be managed by Climate Asset Management, a joint venture between HSBC Asset Management and Pollination. The commitment will support a broader portfolio of high-quality nature-based projects that scale up carbon removal while seeking to achieve a financial return on investment.\nThe expanded fund will target two types of investments: sustainable agriculture and other ecosystem assets, and a pipeline of landscape restoration projects that aim to remove carbon from the atmosphere. Together, this unique blended fund structure will continue to demonstrate that we can invest in high-quality nature-based projects to achieve both financial and carbon returns.\nIntegrity and a rigorous approach are central to how we designed the Restore Fund with our partners. The projects aim to become certified to international standards developed by organizations such as Verra, Gold Standard, the Climate, Community amp; Biodiversity Alliance (CCBA), and the Forest Stewardship Council (FSC). Use of these international standards helps confirm that the carbon stored in forests is measured and reported to the highest standards and that projects have the most up-to-date safeguards in place. The projects we choose will also seek to have a positive impact on the livelihoods of local communities by bringing economic opportunities to often underserved rural economies. And we’ll continue to focus on projects that protect lands with high conservation values.\nWe plan to reach our goal of becoming carbon neutral across our entire value chain by 2030, using a wide range of solutions at our disposal, prioritizing significant emissions reductions and long-term carbon removal initiatives like the Restore Fund. But as the projects in the Restore Fund come online, we’re also working to address difficult-to-avoid emissions in the short term. \nWe’ve been carbon neutral for our corporate emissions since April 2020. We started by reducing our corporate emissions through the use of 100 percent renewable electricity and energy efficiency efforts at our facilities. But emissions remain difficult to avoid in some activities — including the natural gas used in some of our buildings and emissions from business air travel and employee commute. \nLink_56\ntext_41", "Each of these innovations has applications for our other products — and potential to eliminate plastics. We intend to implement these across our products to reach our goal of eliminating plastics in our packaging. For example, overprint varnish replaces the plastic lamination that accounts for approximately half the plastics remaining in our packaging.\nLink_75\ntext_60\nLink_76\ntext_61\nLink_77\ntext_62\nLink_78\ntext_63\nLink_79\ntext_64", "We look beyond our operations and those of our suppliers to address shared water challenges. This involves engaging with the communities around our facilities for the protection of local watersheds. Since 2018, we’ve partnered with the Alliance for Water Stewardship (AWS) to advance the AWS Standard, the first global framework to measure responsible water stewardship across social, cultural, environmental, and economic criteria. In 2020, Apple joined the AWS board of trustees with the objective of highlighting water stewardship opportunities to our suppliers and promoting collective action on shared water challenges with the Information and Communications Technology sector.\nThrough AWS, we’ve been able to certify facilities that meet the AWS Standard, considering benefits and recognizing impacts to local water catchments, communities, and ecosystems. Our Prineville, Oregon, data center was the first facility of its kind to receive AWS certification in 2021. In January 2023, our Reno, Nevada, and Mesa, Arizona, data centers also achieved certification. We are on track to certify all of our owned and operated data centers by 2025.\nSince 2018, 17 of our supplier sites have achieved certification for the AWS Standard, 15 of which achieved a Platinum rating — the highest score achievable within the AWS framework. In January 2022, Suzhou Industrial Park — with the help of Apple and other partners — become the first industrial park in the world to earn the AWS certification.\nWe’re also active in the communities where our facilities are located. In Prineville, we supported the Deschutes Land Trust in the protection of the Ochoco Preserve, which is situated at the confluence of the Ochoco and McKay creeks — a major salmon and steelhead trout habitat in the Crooked River basin. In Reno, Nevada, and the surrounding areas, we continue to partner with The Nature Conservancy for restoration and clean-up efforts of natural habitats along the Truckee River.\nA key element to addressing water availability, quality, and access is replenishment efforts and nature-based approaches to restoring watersheds. Our goal is to replenish our corporate freshwater withdrawals in high stress locations. This work is underway with some key projects.\nIn partnership with the Bonneville Environmental Foundation, we’re funding the removal of the invasive Arundo donax cane species in the San Fernando Valley area of the Los Angeles River watershed. This plant species monopolizes space, sunlight, and water, displacing wildlife and stressing local watersheds. This removal effort addresses water availability in the watershed that feeds the greater Los Angeles area and will deliver 55 million gallons of replenished water annually.\nIn 2018, we partnered with the City of Prineville to develop an aquifer storage and recovery (ASR) system. The ASR system pumps water during the winter off-peak months from the large aquifer that underlies Prineville, treats the water, and then conveys it uphill to a smaller local aquifer. In the summer, this stored water is pumped to meet our cooling needs so that our water usage doesn’t affect city water supplies. This response to seasonal variability helps provide water security and drought resilience for the region.\nOur work on water affords us another opportunity: to lead with others and push for change across industries. We collaborate with groups, including AWS and the Responsible Business Alliance (RBA), and speak to audiences that are in a position to impact their communities and industries. In May 2022, we addressed the AWS Global Water Stewardship Forum in Edinburgh to discuss our stewardship strategy supply chain. In October 2022, we addressed the RBA’s annual conference in Santa Clara, California, with AWS to promote collective action on key catchment identification in the ICT sector in order to further accelerate supplier participation in water stewardship efforts, including supplier hubs in priority water basins.\nIn 2022, we partnered with Frank Water in India to develop and implement a water resource management plan through a community-based WASH grant that focuses on increasing water stewardship through improving decision making around water and climate resilience. Frank Water works alongside local partners so that safe water, sanitation, and hygiene are within reach for communities experiencing challenges in accessing water resources. And in 2023, we joined the UN Water Conference to speak to the importance of corporate leadership on water, emphasizing the importance of supply chain actions. \nWe also take positions on issues that matter to us and where we can try to make a difference. We’re engaging with the development of the next phase of Volumetric Water Benefit Accounting methodology with the WRI and others to further the replenishment and nature-based solutions industry.\nLink_93\ntext_78", "The program funds clean energy projects that are mutually beneficial — local communities and organizations get access to cost-effective energy, and Apple retains the environmental attributes of each project. We currently support 20 renewable projects around the world, including:\nColombia: Apple helps bring a rooftop solar power system online at the Hospital Infantil Santa Ana. The money saved on energy bills will allow the hospital to purchase more equipment and medications. A rooftop solar installation at Ciudad Don Bosco, a nonprofit that provides educational and social services for under-resourced youth, helps the group advance its sustainable development goals.\nDemocratic Republic of the Congo: Apple provides access to renewable energy for the Malaika School, which empowers Congolese girls and their communities through education, agriculture, water projects, health outreach, sports, and vocational training. To support Malaika students and teachers, this solar initiative builds on other Apple collaborations, including virtual Today at Apple sessions on coding with Swift, photography, filmmaking, and design, as well as other events with Apple Retail teams and Diversity Network Associations.\nIsrael: Apple supports the Nitzana Educational Eco-Village, a community for at-risk youth, with a 260-kilowatt solar system to help lower electricity costs. The savings help enhance educational experiences for youth from various backgrounds.\nNigeria: A remote mini-grid project is under development to provide energy access to community members and replace fossil fuels for some businesses. Apple will also continue to support the development of a solar power system to serve primary healthcare centers in the state of Ondo, as well as 200 households in the surrounding region.\nPhilippines: Apple helps fund an educational institution that provides scholarships to high-achieving, under-resourced students by offsetting electricity expenses through a new rooftop solar installation in Bataan.\nSouth Africa: Apple will fund new rooftop solar installations at a vocational school and at a home for senior citizens. Along with the four operational projects, these installations will reduce electricity costs, and the savings will help fund operating costs and expand programs to support underserved groups. Apple will continue to bring electricity to over 3500 households that previously lacked access with local street lighting. \nThailand: Apple helped establish a solar energy system to replace the use of polluting diesel fuel for a remote fishing village that relies on refrigerators to maintain the quality of its fish products. We increased local renewable energy production and battery storage to improve reliable access to electricity.\nVietnam: Apple helps provide solar electricity for 20 schools around the country, and helps teach thousands of children about sustainable development and STEM.\nZambia: A microgrid supported by Apple will provide power to hundreds of households that are currently without electricity. The project will reduce reliance and costs associated with imported diesel and gasoline for generators, and it will increase the amount of power available to community organizations and businesses.\nPower for Impact is expanding access to clean, affordable power in different parts of the world. Apple will continue to focus on uplifting communities as it pursues its environmental goals.", "TBody_8", "TR_8", "TD_80\nTD_81\nTD_82\nTD_83", "TBody_9", "TR_9", "TD_84\nTD_85\nTD_86", "Carbon neutral for corporate emissions\nReduced value chain emissions by over 45 percent \nCalled on Apple suppliers to decarbonize \nCommitted an additional $200 million to nature-based projects\nIncreased our use of recycled materials\nIntroduced our comprehensive water strategy\nReduced plastic content in packaging\nDrove the creation of a new standard for green cleaners\nReceived the 2022 Impact Award from the GC3\nAdvanced the Impact Accelerator", "Create all products with net-zero carbon impact by 2030\nTransition our entire product value chain, including manufacturing and product use, to 100 percent clean electricity by 2030\nUse only recycled and renewable materials in our products and packaging, and enhance material recovery\nReduce water impacts in the manufacturing of our products, use of our services, and operation of our facilities\nEliminate waste sent to landfill from our corporate facilities and our suppliers \nDrive comprehensive reporting of the chemicals used in our supply chain to make our products\nIntegrate smarter chemistry innovation into the way we design and build our products\nAvoid exposure to chemicals that could be harmful to human health or the environment\nLink_27\ntext_12", "Key challenges to developing circular supply chains include:\nTechnical properties\nAvailability and access\nSupply chains\nTraceability\nScale\nRegulatory barriers \nHow we source materials:\nRecycled content\nResponsible sourcing", "The properties of a recycled or renewable material may differ from the primary material. This needs to be accounted for during product design and manufacturing. For example, select recycled plastics differ in properties from other plastics. The composition of other recycled materials can also be impacted by some level of contamination during the recycling process.\nSupply of recycled and renewable materials can be constrained by the limited availability of scrap sources or production of renewable content. When supply exists in some locations around the world, new suppliers need to be incorporated into supply chains for the material to be accessed.\nRecycled or renewable content may not be easily accessible on the market, requiring the development of new supply chains.\nInformation about the source of materials — whether mined, recycled, or renewable — might not be readily available. \nMaterials for a single component can come from hundreds of different material suppliers, representing an exponential increase in effort as we scale the use of high-quality recycled or renewable materials across components and products.\nCertified recycled content is sourced from recycled materials that have been independently verified by third parties to a standard that conforms with ISO 14021. We also account for recycled content that has been confirmed by suppliers but hasn’t received third-party verification.\nApple’s Responsible Sourcing of Materials Standard covers all primary and recycled materials. Our standard aligns with leading international standards, including the UN’s Guiding Principles on Business and Human Rights and OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas.\nLink_66\ntext_51", "As part of Apple’s commitment to reduce our products’ environmental impact through innovation, we’ve partnered with aluminum companies and the governments of Canada and Quebec to invest in ELYSIS — a joint venture to commercialize patented technology that eliminates direct greenhouse gas emissions from the traditional smelting process. This is a revolutionary advancement in the manufacturing of one of the world’s most widely used metals. Since our collaboration began in 2018, we’ve helped accelerate the development of this technology by facilitating the joint partnership and providing initial funding and ongoing technical support. \nOne of the largest contributors of direct emissions in our supply chain is the use of fluorinated greenhouse gases (F-GHGs). F-GHGs are used in the electronics manufacturing of semiconductors and flat-panel displays, and they have global warming potentials that are thousands of times more than those of CO2. We’re partnering closely with key manufacturers as they work to prevent these gases from being released into the atmosphere. So while the use of F-GHGs in certain manufacturing processes today is difficult to avoid, emissions can be abated by switching to alternative input gases, by optimizing production processes to use and emit fewer F-GHGs, and by installing gas abatement tools.\nWe’re also seeking out technical innovations for transport, including working with our suppliers to use alternative fuels and electric vehicles. For example, in Europe we piloted a heavy-duty truck fueled by hydrogen, an emerging low-carbon fuel for trucks that travel long distances. And we’re continuing to evaluate carriers that offer carbon-neutral deliveries using electric vehicles, including e-bikes and e-cars. These innovations help reduce our impact in the communities where our customers purchase our products. And by preferring vendors that offer low-carbon options, we signal the value of these options to us and reward those driving decarbonization in their industry. We are also combining multiple products into one delivery when possible, reducing packaging and reducing emissions though efficiency on the last leg of the journey. At the same time, Apple is working to spur entirely new solutions, for example by supporting analyses by Carbon Direct identifying pathways for developing sustainable aviation fuels.\nAnd we’re exploring ways to reduce our carbon footprint from employees commuting to work. For example, we’re helping our employees transition away from single-occupancy vehicles through mass transit, coach services, and campus bicycles. To incentivize the use of electric vehicles, we offer more than 1670 EV charging stations and 3200 ports across our U.S.-based campuses. For the commute-related emissions that remain, we’re applying high-quality offsets.\nLink_53\ntext_38\nLink_54\ntext_39", "LI_1\nLI_2\nLI_3\nLI_4", "TableHeadingLeft_25\nTableHeadingLeft_26\nTableHeadingLeft_27\nTableHeadingLeft_28\nTableHeadingLeft_29\nTableHeadingLeft_30\nTableHeadingLeft_31\nTableHeadingLeft_32", "TBody_6", "TR_6", "TD_74\nTD_75\nTD_76", "TBody_7", "TR_7", "TD_77\nTD_78\nTD_79", "Maiden, North Carolina\n100 percent renewable since opening June 2010\nPrineville, Oregon\n100 percent renewable since opening May 2012\nReno, Nevada\n100 percent renewable since opening December 2012\nNewark, California\n100 percent renewable since January 2013\nMesa, Arizona\n100 percent renewable since opening March 201710\nOur global command data center in Mesa, Arizona, came online in 2016. To support this facility, we partnered with the local utility, the Salt River Project (SRP), to build the 50-megawatt Bonnybrooke solar project, which became operational in December 2016. This project produces over 148 million kWh of clean, renewable energy a year, which roughly matches the energy used by the data center.\nDenmark\n100 percent renewable energy from the first \nday of operations\nChina\n100 percent renewable energy from the first \nday of operations", "Low-carbon design_0\nEnergy efficiency_0\nClean electricity_0\nDirect emissions abatement_0\nCarbon removal_0\ngt;75 percent \nemissions reduction\nlt;25 percent of footprint", "Below is an overview of our progress across the 14 materials that we’re prioritizing for recycled or renewable sourcing. As we work toward our goals, we’ll continue to be open about the challenges that we encounter.\nLink_64\ntext_49\nLink_65\ntext_50", "Global demand for electronics is increasing, and with it, so is the demand for the materials that make up those products. Awareness is growing of the finite nature of some of these resources, such as critical minerals or rare earth elements — as well as of the complex, globally interrelated nature of the supply chains that electronics rely on. Circularity plays an important role in helping realize environmental benefits while building supply chain resilience. Policy can be part of the solution, helping transition from the older “take-make-dispose” linear model to circular supply chains. This reflects changing technologies as well as current and future demands, making circular supply chains competitive with traditional, extractive ones. \nWe’ve also expanded our Self Service Repair program from iPhone 12 and iPhone 13 to include MacBook Air and MacBook Pro notebooks with the M1 family of chips. This makes repair manuals and genuine Apple parts and tools available to customers through the Apple Self Service Repair Store. We continue to build, support, and participate in circular supply chains. But challenges remain to achieve fully circular electronics supply chains. \nPolicy can help accelerate progress. A thriving, responsible, circular economy supports critically important health, safety, and environmental protections. It can also enable closed loop supply chains to be cost and operationally competitive with linear models. Harmonized policies can remove barriers and drive the transition to circularity by meeting the following high-level objectives: \nApple supports the ratification of the Basel Convention by the United States. This would help enable circular supply chains and address some current barriers to efficient materials recovery and reuse. The Basel Convention is the global regulatory framework guiding how some waste — including electronics and e-scrap — can be moved for recovery, recycling, and disposal. The convention provides critical environmental and social protections, especially against moving hazardous waste to geographies that lack the resources to manage it in an environmentally sound manner. Countries that have ratified the convention can move materials covered by the agreement among themselves, following the agreement’s regulatory requirements. \nThe U.S. is one of a very small number of countries not party to the Basel Convention. This imposes restrictions on the movement of Basel-controlled wastes for recycling or resource recovery into or from the U.S. to nearly all other countries in the world, requiring specific trade agreements with another country. The U.S. ratifying the convention would unlock more efficient movement of material to high-quality electronics recycling facilities, helping scale circularity and the available supply of recycled material. It would also allow the U.S. to participate in the global conversation around how to protect communities and environmental health and create more efficient and effective circular supply chains.\nLink_86\ntext_71", "We approach low-water design by first focusing on site selection, conducting a water risk evaluation to determine whether a potential site is in a water-stressed area or not. We aim to avoid locating water-intensive processes in water-stressed locations, so we either use the results to select a more appropriate site where possible, or to mitigate the impact of our expected water use.\nThen, we look to systems and processes that use less water or reuse water, so that we can limit excess water consumption and, where possible, eliminate waste. We also design solutions to manage the quality of the water that we return to the watershed.\nIn our supply chain, a majority of water is used during manufacturing. For example, in 2019 we launched a pilot program at a manufacturing location in China as part of our anodizing improvement program with the aim of reducing, and eventually eliminating, potentially hazardous discharge as well as reducing water and chemical use. Anodizing is the most water-intensive process in the metal-finishing process of enclosures. As part of the pilot, we employed several water efficiency approaches, including using cascade and counterflow rinsing processes, which helped retain 75 to 85 percent of the water used during metal finishing. This process improvement has the potential to save millions of gallons of freshwater annually when applied at scale.\nLink_88\ntext_73\nLink_89\ntext_74", "These efforts start at the local level. In Santa Clara Valley, California, where our corporate headquarters are located, we’ve pursued water conservation across our landscaping efforts. This includes six new projects in 2022, saving 1.2 million gallons of water. We intend to expand this work to an additional 16 conservation projects in 2023.\nWe’re also expanding our efforts to recover water that’s otherwise wasted. Six new condensate recovery installations — including four in Santa Clara Valley and installations at our new Capstone campus in Austin, Texas, and at our Maiden, North Carolina, data center — harvest excess water from cooling systems to be redirected to cooling towers and for landscaping use that would otherwise be discharged.\nWe also require our suppliers to maintain the high standards for water discharge outlined in the Apple Supplier Code of Conduct. Through Apple’s Clean Water Program, we help suppliers minimize process water impacts and adopt best practices in wastewater treatment. We make our expectations clear to our suppliers and help define operational approaches so that they have the support needed to achieve their optimal level of water efficiency and conservation. There’s a clear business imperative to develop these practices, particularly in manufacturing and production where water is critical for power generation, cleaning, and cooling processes. Water scarcity around the world requires that we focus on shifting this program away from voluntary engagement. We’re working to incorporate water requirements into our procurement decision-making so that supplier engagement scales faster.\nLink_91\ntext_76\nLink_92\ntext_77", "PVC and phthalates\nBrominated flame retardants (BFRs)\nMercury\nLead\nArsenic\nBeryllium\nPFAS (PFOA and PFOS)", "We’ve replaced these with safer thermoplastic elastomers. Both are still used by other companies in power cords and headphone cables.\nIn 2008, we eliminated BFRs from thousands of parts, such as enclosures, cables, circuit boards, and connectors. We use safer metal hydroxides and phosphorus compounds in their place.\nWe eliminated mercury from displays in 2009. We use energy-efficient, mercury-free LEDs and OLEDs instead of mercury-based fluorescent lamps in all our displays.\nApple phased lead out of display glass and solder in 2006.\nArsenic, traditionally used in glass, has been eliminated from Apple display glass since 2008.\nEliminated from all new product designs, beryllium is found in copper alloys used to make connectors and springs. \nWe eliminated PFOA and PFOS from our products, with RSS restrictions added in 2010 and 2013, respectively. These types of chemicals are commonly used in manufacturing water-resistant materials. We’re committed to eliminating PFAS entirely from our products.", "TableHeadingLeft_6\nTableTextLeft-95144b44\nTableTextLeft-95144b44_0\nTableTextLeft-95144b44_1\nTableTextLeft-95144b44_2\nTableTextLeft-95144b44_3\nTableTextLeft-95144b44_4", "TableHeadingLeft_7\nTableTextLeft-95144b44_96\nTableTextLeft-95144b44_97\nTableTextLeft-95144b44_98\nTableTextLeft-95144b44_99\nTableTextLeft-95144b44_100\nTableTextLeft-95144b44_101", "TableHeadingLeft_17\nTableHeadingLeft_18\nTableHeadingLeft_19\nTableHeadingLeft_20\nTableHeadingLeft_21\nTableHeadingLeft_22\nTableHeadingLeft_23", "TableTextLeft_0\nTableTextLeft-95144b44_199\nTableTextLeft-95144b44_200\nTableTextLeft-95144b44_201\nTableTextLeft-95144b44_202\nTableTextLeft-95144b44_203\nTableTextLeft-95144b44_204", "TableTextLeft_1\nTableTextLeft-95144b44_205\nTableTextLeft-95144b44_206\nTableTextLeft-95144b44_207\nTableTextLeft-95144b44_208\nTableTextLeft-95144b44_209\nTableTextLeft-95144b44_210", 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"TableTextLeft-95144b44_510\nTableTextLeft-95144b44_511\nTableTextLeft-95144b44_512\nTableTextLeft-95144b44_513\nTableTextLeft-95144b44_514\nTableTextLeft-95144b44_515\nTableTextLeft-95144b44_516", "TableTextLeft-95144b44_517\nTableTextLeft-95144b44_518\nTableTextLeft-95144b44_519\nTableTextLeft-95144b44_520\nTableTextLeft-95144b44_521\nTableTextLeft-95144b44_522\nTableTextLeft-95144b44_523", "TableTextLeft-95144b44_525\nTableTextLeft-95144b44_526\nTableTextLeft-95144b44_527\nTableTextLeft-95144b44_528\nTableTextLeft-95144b44_529\nTableTextLeft-95144b44_530\nTableTextLeft-95144b44_531", "TableTextLeft-95144b44_533\nTableTextLeft-95144b44_534\nTableTextLeft-95144b44_535\nTableTextLeft-95144b44_536\nTableTextLeft-95144b44_537\nTableTextLeft-95144b44_538\nTableTextLeft-95144b44_539", "TableTextLeft-95144b44_540\nTableTextLeft-95144b44_541\nTableTextLeft-95144b44_542\nTableTextLeft-95144b44_543\nTableTextLeft-95144b44_544\nTableTextLeft-95144b44_545\nTableTextLeft-95144b44_546", "TableTextLeft-95144b44_547\nTableTextLeft-95144b44_548\nTableTextLeft-95144b44_549\nTableTextLeft-95144b44_550\nTableTextLeft-95144b44_551\nTableTextLeft-95144b44_552\nTableTextLeft-95144b44_553", "TableTextLeft-95144b44_554\nTableTextLeft-95144b44_555\nTableTextLeft-95144b44_556\nTableTextLeft-95144b44_557\nTableTextLeft-95144b44_558\nTableTextLeft-95144b44_559\nTableTextLeft-95144b44_560", "Appendix B_0\nHow we procure renewable energy\nFacilities renewable energy projects\nFiscal year 2022 energy and carbon footprint (corporate facilities)\nA focus on data centers\nOur colocation facilities\nThird-party computing", "TableTextLeft-95144b44_660\nTableTextLeft-95144b44_661\nTableTextLeft-95144b44_662\nTableTextLeft-95144b44_663\nTableTextLeft-95144b44_664\nTableTextLeft-95144b44_665\nTableTextLeft-95144b44_666", "TableTextLeft-95144b44_667\nTableTextLeft-95144b44_668\nTableTextLeft-95144b44_669\nTableTextLeft-95144b44_670\nTableTextLeft-95144b44_671\nTableTextLeft-95144b44_672\nTableTextLeft-95144b44_673", "TableTextLeft-95144b44_716\nTableTextLeft-95144b44_717\nTableTextLeft-95144b44_718\nTableTextLeft-95144b44_719\nTableTextLeft-95144b44_720\nTableTextLeft-95144b44_721\nTableTextLeft-95144b44_722", "TableTextLeft-95144b44_723\nTableTextLeft-95144b44_724\nTableTextLeft-95144b44_725\nTableTextLeft-95144b44_726\nTableTextLeft-95144b44_727\nTableTextLeft-95144b44_728\nTableTextLeft-95144b44_729", "TableTextLeft-95144b44_740\nTableTextLeft-95144b44_741\nTableTextLeft-95144b44_742\nTableTextLeft-95144b44_743\nTableTextLeft-95144b44_744\nTableTextLeft-95144b44_745\nTableTextLeft-95144b44_746", "TableTextLeft-95144b44_751\nTableTextLeft-95144b44_752\nTableTextLeft-95144b44_753\nTableTextLeft-95144b44_754\nTableTextLeft-95144b44_755\nTableTextLeft-95144b44_756\nTableTextLeft-95144b44_757", "TableTextLeft-95144b44_758\nTableTextLeft-95144b44_759\nTableTextLeft-95144b44_760\nTableTextLeft-95144b44_761\nTableTextLeft-95144b44_762\nTableTextLeft-95144b44_763\nTableTextLeft-95144b44_764", "TableTextLeft_30\nTableTextLeft-95144b44_765\nTableTextLeft-95144b44_766\nTableTextLeft-95144b44_767\nTableTextLeft-95144b44_768\nTableTextLeft-95144b44_769\nTableTextLeft-95144b44_770", "TableTextLeft-95144b44_771\nTableTextLeft-95144b44_772\nTableTextLeft-95144b44_773\nTableTextLeft-95144b44_774\nTableTextLeft-95144b44_775\nTableTextLeft-95144b44_776\nTableTextLeft-95144b44_777", "TableTextLeft-95144b44_778\nTableTextLeft-95144b44_779\nTableTextLeft-95144b44_780\nTableTextLeft-95144b44_781\nTableTextLeft-95144b44_782\nTableTextLeft-95144b44_783\nTableTextLeft-95144b44_784", "TableTextLeft-95144b44_797\nTableTextLeft-95144b44_798\nTableTextLeft-95144b44_799\nTableTextLeft-95144b44_800\nTableTextLeft-95144b44_801\nTableTextLeft-95144b44_802\nTableTextLeft-95144b44_803", "The Supplier Clean Energy Program is integral to Apple’s goal of reaching carbon neutrality by 2030. We’re focused on working with our suppliers to help them increase energy efficiency at their facilities and transitioning suppliers to clean, renewable electricity. These efforts are helping reduce product-related carbon emissions, create a more resilient supply chain, and contribute to healthier communities — while offering a model for others to follow.\nWe’re proud of the progress our suppliers have made. As of March 2023, over 250 manufacturing partners in 28 countries have committed to 100 percent renewable electricity for Apple production (see below for the suppliers participating). Additionally, Apple itself has directly invested in nearly 500 megawatts of renewable electricity projects to cover a portion of upstream emissions. The Supplier Clean Energy Program now has over 20 gigawatts of clean energy commitments, of which nearly two-thirds are operational. In 2022, the 13.7 gigawatts of renewable energy online in Apple’s supply chain generated 23.7 million megawatt-hours of clean energy, avoiding 17.4 million metric tons of carbon emissions — a 23 percent increase over 2021.1\nWe help our suppliers select projects with the greatest potential for impact and with a clear carbon, ecological, and social benefit, and we consider the life cycle emissions associated with current and emerging clean energy technologies. In most cases, wind and solar solutions meet our criteria. For some energy solutions, such as biomass and hydroelectric generation, we review individual projects so that they deliver positive impact while minimizing harm. We also uphold stringent assurance standards so that all clean energy can be verified through third-party assessment.2\nWe want to be a driving force for the development of new projects and help overcome barriers to bring new renewable electricity online. With the rapidly changing policy dynamics in some of our key countries, we continuously evolve our framework both to comply with local laws and regulations and to yield the most positive and meaningful energy transformation. \nThe following charts include breakdowns of the contracting mechanisms and technologies that suppliers have identified to help meet their commitments. \nApple’s suppliers are implementing clean energy solutions using a variety of contracting mechanisms — with renewable power purchases representing the majority of solutions implemented to date, at 66 percent.\nWe work with our suppliers to select projects with the greatest potential for impact and with a clear carbon, ecological, and social benefit. “Other technology” includes clean energy sources such as some forms of biomass, geothermal, and small-scale, low-impact hydro. ", "Link_177\nLink_178\nLink_179\nLink_180\nLink_181\nLink_182", "Link_230\nLink_231\nLink_232\nLink_233\nLink_234\nLink_235", "Link\nLink_0\nLink_1", "Link_42\ntext_27\nLink_43\ntext_28\nLink_44\ntext_29", "This means working with our partners, learning from their feedback, and providing support where we can make a difference. We aim to effect positive change within and beyond our operations and supply chain. And we respond to the world around us by looking for opportunities where our leadership can impact policies, industries, and communities in a transformative way.\nWe approach our conversations with others through curiosity and with the intention of learning from diverse communities devoted to environmental stewardship. We purposefully engage those who bring a range of perspectives and understanding of the issues that matter to us. The conversations we have with policy makers, nonprofits, and community leaders help shape how we see regulations, approaches, and the promise of emerging technologies. We learn from this engagement, too. This process helps us discover opportunities to navigate challenges and improve in our efforts to achieve our environmental goals. Ultimately, we’re able to put these conversations into action — whether that means aligning with new standards and best practices or exploring the potential that cutting-edge research can have on our operations. \nThis year, we continued to hold roundtable discussions on environmental issues with key stakeholders, including members of academia and industry associations, to better understand issues and regulations region by region. We value the input that these forums provide; each helps us understand the role that enhanced transparency plays for those working directly on policy. And these conversations also offer the opportunity to share information on our efforts.\nWe engage with the scientific community to better understand emerging approaches and cutting-edge tools that can support our environmental goals. We’re working with researchers at Carnegie Mellon University to create robotic recycling systems to enhance material recovery for Apple and others through the development of advanced mechanisms for product disassembly and material sorting. We also continue to engage our Green Chemistry Advisory Board, an independent group of toxicologists and experts who advise on our smarter chemistry initiatives, including potential updates to the RSS. Their diverse expertise and perspectives help us lead the way to protect our customers and those who make and recycle our products.\nEngaging with others has also helped us refine our approach to industry standards and best practices. We draw from cross-sector engagement platforms to help guide our programs and set standards for environmental efforts. The Alliance for Water Stewardship (AWS) is one example of this. Their expertise defines the world-class water stewardship practices that we’ve implemented at key Apple and supplier facilities, earning AWS certification for adherence to their Standard. \nWe’re motivated by what we hear from within the business community, including our customers, employees, suppliers, industry partners, and investors. Their input provides vital support for our environmental goals and pushes us further in our efforts. For example, as co-chair of the United States Information Technology Office (USITO) — a trade association representing the U.S. information and communications technology industry in China — we lead the environmental protection and energy efficiency working groups. In this role, we engage with other companies in China as we work to comply with new environmental regulations and with policy makers on future standards. We continually look for more opportunities to hear from others — at the industry and national levels — to receive feedback and make progress.", "Through our engagement efforts, we have the opportunity to work directly with those who have been addressing environmental injustice in their communities. A range of organizations — from NGOs to startup technology companies — share our goals across climate change, resources, and smarter chemistry. We evaluate each opportunity to collaborate based on the potential to scale a proven environmental approach, test or pilot an innovation, or take steps to improve equity in communities disproportionately impacted by climate change and environmental dangers. When we partner with another organization, we believe success hinges on close collaboration on mutual objectives. To track our progress, we work with each partner to align on the metrics that best reflect the unique contribution that each organization is making to its community. \nWe value the opportunity to work with partners to contribute beyond our direct corporate operations — outside our areas of expertise and sometimes in new spaces. This is where some of the most vital work is being done to support transformational change for communities. Our work combines both collaborative work and philanthropic contributions, which we determine based on each organization’s focus and their potential to effect change. And we recognize the importance of community-driven leadership on many issues by providing support. \nIn 2022, we supported efforts that span a breadth of work. The Conservation Fund is actively engaging and supporting land retention among Black landowners in the rural U.S. South. Working to support and center local organizations like McIntosh S.E.E.D., this collaboration helps landowners become more resilient to climate change through workshops and trainings on topics like sustainable forestry. World Wildlife Fund is engaged at the community level in developing alternative livelihood and other climate resilience projects through their Climate Crowd program. Beyond Benign works to increase BIPOC representation in smarter chemistry by providing students and faculty in minority-serving institutions with training, resources, networks, and curriculum support. Frank Water works with communities in India by using technology to map local watersheds and monitor the health of water ecosystems. The China Green Carbon Foundation is working on innovative approaches to carbon sequestration, including developing and restoring semi-urban forests and strengthening management practices. And Conservation International founded the Finance Lab for Irrecoverable Carbon to create business models and new approaches for incentivizing the protection and repair of ecosystems essential to meeting global climate goals. \nWe continue to collaborate with environmental justice groups by providing grants to minority-led and minority-centered organizations that focus on environmental issues. These organizations play a significant and vital role within their communities. They also support our efforts to avoid negative impacts for underrepresented communities as we pursue our environmental goals. We’re able to provide both financial support and assistance in amplifying the work and impact that these groups have in and beyond their communities. And we work with these groups to address the global effects of climate change and environmental hazards that traditionally impact overburdened communities. \nWe expanded our Strengthen Local Communities grant program — which provides funding to local organizations in the communities where Apple team members live and work — to communities outside the United States. In 2022, we supported the Environmental Justice Foundation based in the United Kingdom and the Karrkad Kanjdji Trust and Original Power in Australia with grants that focused on access and equity. We also continued to support organizations in the U.S., including The Green Door Initiative, the Michigan Environmental Justice Coalition, the Environmental Leadership Program, Native Conservancy, and UPROSE.\nWe’re seeing progress, too. Hispanic Access Foundation works to support diverse Latino voices in their communities to advocate for environmental issues that directly affect their daily lives. Through our partnership, the organization was able to double the number of interns that it employs while paying a competitive market wage and jumpstart the Latino Climate Council, a new network of young, talented Latino leaders who are diversifying the field and bringing frontline perspectives to the climate justice movement. And representatives from the Center for Rural Enterprise and Environmental Justice traveled to Japan to learn about the country’s approach to renewable energy. They also met with local representatives and partners to better understand Japanese perspectives around equity, inclusion, and justice in connection with the environment.", "The Apple Impact Accelerator is designed for Black-, Hispanic/Latinx-, and Indigenous-owned businesses that share our focus on innovation and our commitment to the environment. With customized training and access to Apple experts, our Impact Accelerator helps companies as they achieve their next stage of development. As part of Apple’s Racial Equity and Justice Initiative, the Impact Accelerator supports businesses that drive innovation and positive outcomes in our supply chain — so that together, we can work to support communities disproportionately impacted by environmental issues. \nIn 2022, our second class of the Impact Accelerator included 16 businesses at the leading edge of environmental services and solutions. Each company selected is at least 51 percent owned, operated, and controlled by a Black-, Hispanic/Latinx-, or Indigenous individual and aligns closely with our environmental strategy, including our commitment to become carbon neutral by 2030. Many of them share a focus on bringing clean energy, opportunity, and vital services to vulnerable and underserved communities.\nThe companies participate in a three-month program aimed at accelerating progress toward their goals. The program includes live virtual sessions, online courses on supply chain management, supplier diversity, financial and legal subjects, and one-on-one mentorship with an Apple expert on topics from renewable energy to responsible sourcing. Executives and their teams receive customized training that provides the knowledge and tools that organizations need to succeed as Apple suppliers, as well as access to Apple mentors and experts to help align their business priorities with Apple’s environmental goals. The program culminates in an opportunity for participants to pitch their services and solutions to decision makers and business leaders within Apple. \nThe companies sustain their commitment after the program. Each participant transitions to Apple’s Supplier Success community to further foster the connections developed during the program — and to forge new connections across all generations of the program. Every business is given the opportunity to attend a business executive leadership program focused on supply chain and growth through a leading university.\nOur most recent class featured a diverse set of companies engaged in work on water stewardship, recycling technologies, and green building and engineering, among other areas. The program supports these companies as they better position themselves for growth, improve their abilities to engage larger contracts, and expand their customer base — all while supporting their commitment to the environment. The program has also connected like-minded business leaders, both within our Impact Accelerator classes and at Apple, to create new opportunities for innovation and to realize our shared goals. \nThe goal of the Impact Accelerator is that Apple’s strategic work and investments to protect the environment also help expand access to opportunity for communities of color. Since their participation in the program, companies have seen increased recognition for their work within their sector and local communities, have built connections with public- and private-sector leaders, and have seen their overall business opportunities expand. Several are currently working with Apple as part of the company’s supply chain network, and every company has participated in selective opportunities to be assessed for potential business with Apple.", "TableTextLeft-95144b44_5\nTableTextLeft-95144b44_6\nTableTextLeft-95144b44_7\nTableTextLeft-95144b44_8\nTableTextLeft-95144b44_9\nTableTextLeft-95144b44_10", "TableTextLeft-95144b44_11\nTableTextLeft-95144b44_12\nTableTextLeft-95144b44_13\nTableTextLeft-95144b44_14\nTableTextLeft-95144b44_15\nTableTextLeft-95144b44_16", "TableTextLeft-95144b44_17\nTableTextLeft-95144b44_18\nTableTextLeft-95144b44_19\nTableTextLeft-95144b44_20\nTableTextLeft-95144b44_21\nTableTextLeft-95144b44_22", "TableTextLeft-95144b44_23\nTableTextLeft-95144b44_24\nTableTextLeft-95144b44_25\nTableTextLeft-95144b44_26\nTableTextLeft-95144b44_27\nTableTextLeft-95144b44_28", 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"TableTextLeft-95144b44_925\nTableTextLeft-95144b44_926\nTableTextLeft-95144b44_927\nTableTextLeft-95144b44_928\nTableTextLeft-95144b44_929\nTableTextLeft-95144b44_930", "TableTextLeft-95144b44_931\nTableTextLeft-95144b44_932\nTableTextLeft-95144b44_933\nTableTextLeft-95144b44_934\nTableTextLeft-95144b44_935\nTableTextLeft-95144b44_936", "TableTextLeft-95144b44_937\nTableTextLeft-95144b44_938\nTableTextLeft-95144b44_939\nTableTextLeft-95144b44_940\nTableTextLeft-95144b44_941\nTableTextLeft-95144b44_942", "TableTextLeft-95144b44_943\nTableTextLeft-95144b44_944\nTableTextLeft-95144b44_945\nTableTextLeft-95144b44_946\nTableTextLeft-95144b44_947\nTableTextLeft-95144b44_948", "TableTextLeft-95144b44_949\nTableTextLeft-95144b44_950\nTableTextLeft-95144b44_951\nTableTextLeft-95144b44_952\nTableTextLeft-95144b44_953\nTableTextLeft-95144b44_954", "TableTextLeft-95144b44_955\nTableTextLeft-95144b44_956\nTableTextLeft-95144b44_957\nTableTextLeft-95144b44_958\nTableTextLeft-95144b44_959\nTableTextLeft-95144b44_960", "TableTextLeft-95144b44_961\nTableTextLeft-95144b44_962\nTableTextLeft-95144b44_963\nTableTextLeft-95144b44_964\nTableTextLeft-95144b44_965\nTableTextLeft-95144b44_966", "_No_paragraph_style__86\n_No_paragraph_style__87\n_No_paragraph_style__88\n_No_paragraph_style__89\n_No_paragraph_style__90\n_No_paragraph_style__91", "iPhone (1st generation)\niPhone 4\niPhone 7\niPhone X\niPhone 13_0\niPhone 14_0", "Design products and manufacturing processes to be less carbon-intensive through thoughtful material selection, increased material efficiency, and greater product energy efficiency.\nIncrease energy efficiency at our facilities and in our supply chain by finding opportunities to reduce energy use, such as retrofitting outdated or inefficient equipment and systems.\nTransition our entire product value chain — including manufacturing and our customers’ use of our products — to 100 percent clean electricity by 2030.\nReduce direct greenhouse gas emissions in our facilities and our supply chain through process innovation, emissions abatement, and moving away from fossil fuels. \nIn parallel with our emissions reduction efforts, scale up investments in carbon removal projects, including nature‑based solutions that protect and restore ecosystems around the world.", "**\tNet carbon emissions represents our total gross footprint minus carbon offsets applied to each category. Percentages shown for each emissions category represent the share of Apple’s gross footprint. Totals add up to more than 100 percent due to rounding.\n†\tBeginning in fiscal year 2022, we’re including transmission and distribution losses as part of scope 3 emissions, which are matched with renewable electricity.\n‡\tBeginning in fiscal year 2022, we’re incorporating emissions associated with employees working from home as part of Apple’s new hybrid work model, as well as emissions from third-party cloud services — the electricity from both of which is addressed using renewable energy.\nLink_34\ntext_19", "Use only recycled and renewable materials in our products and packaging, and enhance material recovery.\nReduce water impacts in the manufacturing of our products, use of our services, and our facility operations. \nEliminate waste sent to landfill from our corporate facilities and our suppliers. \nLink_57\ntext_42", "This commitment extends across our operations and supply chain, so we use materials in a manner consistent with our values, we responsibly manage freshwater usage so that these resources will be available and safe for others in the community, and we work to eliminate waste at our facilities and those of our suppliers. This serves our objective to minimize the overall resource footprint supporting our products. And we know that we can’t do this alone — it requires collaborative stewardship of shared resources.\nIn the future we envision, our products are made solely from responsibly sourced recycled and renewable materials — to our same rigorous standards of quality and durability. We aim to build durable, long-lasting products that make the best use of the resources required to make them. And recycling approaches and innovations make this achievable, helping us recover and use the materials that we rely on in our products to their full potential. We’re working with leading recyclers and academic institutions to realize this future through researching new technologies and identifying the challenges and opportunities to achieve positive change across industries.\nWater is one of the most critical resources we need to build our products. It provides vital services at our offices, data centers, and stores — and it’s essential to our manufacturing processes. Water is also a community resource. For this reason, we prioritize our stewardship efforts — working toward the most efficient use of freshwater, using alternatives where possible, and managing our discharge responsibly. We also look beyond our facilities to the water basins where we operate. Through collaborations with local partners — including companies, NGOs, and government agencies — we’re working together to improve the quality of the water that our communities rely on.\nAnother approach to conserving resources is by eliminating waste. We work to reuse and recycle across our operations and throughout our supply chain. We strive to eliminate waste where we and our suppliers operate. These efforts go beyond reducing the amount of waste that we generate. We’re innovating approaches to reuse and working with local businesses to create new recycling opportunities.\nWe can move ahead only by working with others. When we collaborate with suppliers, NGOs, recyclers, community stakeholders, and innovation leaders, we can do more while relying on less — and reduce our overall carbon and material footprint.", "We aim to create products that make greater use of circular supply chains that don’t rely on mined resources. They do so while meeting our rigorous requirements for quality, durability, and performance. Part of what makes this possible are the recycling innovations we’re developing to enhance material recovery. While these innovations support circular supply chains for Apple, we also hope our actions are inspiring others to follow.\nThis progress can impact those who buy our products, can influence the markets where we work, and can create change for broader global communities. These are the opportunities that drive us through the challenging work of creating circular supply chains.\nWe source recycled and renewable materials for our products and packaging, and we use these materials more efficiently. We also source the materials responsibly, whether from primary, recycled, or renewable sources.\nWe make the most of the materials we use by designing long-lasting products. We design durable hardware, leverage software updates to extend functionality, provide convenient access to safe and high-quality repair services, and direct devices and parts to be refurbished and reused.\nWe improve how we collect end-of-life products and develop recycling innovations so that we and others can use old devices as raw material sources for the future.", "Building products to last\nImproving access to repairs\nDesigning products with repairability in mind\nKeeping products current with software updates\nExtending the life of products and parts through refurbishment and reuse", "LOW-WATER DESIGN\nSITE EFFICIENCY AND CONSERVATION\nSITE WATER STEWARDSHIP\nREPLENISHMENT AND NATURE-BASED SOLUTIONS\nLEADERSHIP AND ADVOCACY", "Minimize water impacts in the design of products, services, and sites.\nImprove the performance of existing sites and processes.\nDemonstrate responsibility beyond our facilities through watershed level management.\nImprove water availability, quality, and access through regenerative approaches.\nAdvance water management through policy, advocacy, and technology innovation. ", "Smarter chemistry is our approach to identifying chemicals that best serve all our priorities, including safety, performance, and environmental impact. This supports our circular supply chain efforts by minimizing the recirculation of potentially harmful substances. Our efforts to remove potentially harmful chemicals from our products help create safer and healthier workplaces for our employees and suppliers, and safe products for people and the environment. \nOur approach to limiting potential chemical exposure in product manufacturing leverages the hierarchy of controls. The hierarchy of controls is a concept used to control hazard exposure and consists of five actions in order of preference: elimination, substitution, engineering controls, administrative controls, and personal protective equipment (PPE). Elimination and substitution are the most preferred forms of control. When no alternative is available to eliminate or substitute potential exposure, we rely on engineering and administrative controls to safeguard against it. As we focus on this for our manufacturing processes, we push our industry to do the same. \nWe’ve taken the important initial step of accounting for the materials that we use, both in our products and in the processes to create them. This information helps us better protect the people who design, make, use, and recycle our devices. It also informs our efforts to protect the environment. We’re working side by side with leading members of the scientific community, NGOs, and industry organizations to move forward, and we continue to push for the development and broad adoption of safer alternatives.\nOur approach involves proactively promoting the use of smarter materials and chemicals. This involves establishing safety requirements that often exceed local industry standards and empowering our suppliers to meet our guidelines. We also help suppliers source materials that are safer alternatives, which provide the necessary level of performance and are also better for people and the environment. We have created standards and programs to support these efforts, including the rigorous requirements defined in our Regulated Substances Specification (RSS) and the deep supply chain engagement through our Full Material Disclosure (FMD) and Chemical Safety Disclosure (CSD) programs. We also share what we’ve learned in creating these systems with others in the industry — and we push for change that can transform product manufacturing.\nAdvocacy and leadership are needed to make this happen. We’re committed to providing both this role, pushing to broaden the use of safer and more sustainable materials based on smarter chemistry — and working with our suppliers and material manufacturers to create alternatives that can help move our industry forward.", "Through the FMD program, Apple manufacturing partners share the materials used to manufacture Apple products.\nApple works with material manufacturers to understand the chemistries of the materials to enable evaluation.\nInformation on how chemicals are used, how they’re stored, and how employees are protected is shared with Apple by suppliers through our CSD program.\nCSD data informs and prioritizes supplier engagement, encouraging rigorous chemical management practices and adoption of safer alternatives.\nThe FMD and CSD programs help support the creation of best-in-class products in a responsible manner for our customers.", "TableHeadingLeft_1\nTableHeadingLeft_2\nTableHeadingLeft_3\nTableHeadingLeft_4\nTableHeadingLeft_5", "TableHeadingLeft_11\nTableHeadingLeft_12\nTableHeadingLeft_13\nTableHeadingLeft_14\nTableHeadingLeft_15", "TableTextLeft-95144b44_148\nTableTextLeft-95144b44_149\nTableTextLeft-95144b44_150\nTableTextLeft-95144b44_151\nTableTextLeft-95144b44_152", "TableTextLeft-95144b44_153\nTableTextLeft-95144b44_154\nTableTextLeft-95144b44_155\nTableTextLeft-95144b44_156\nTableTextLeft-95144b44_157", "TableTextLeft-95144b44_158\nTableTextLeft-95144b44_159\nTableTextLeft-95144b44_160\nTableTextLeft-95144b44_161\nTableTextLeft-95144b44_162", "TableTextLeft-95144b44_163\nTableTextLeft-95144b44_164\nTableTextLeft-95144b44_165\nTableTextLeft-95144b44_166\nTableTextLeft-95144b44_167", "TableTextLeft-95144b44_180\nTableTextLeft-95144b44_181\nTableTextLeft-95144b44_182\nTableTextLeft-95144b44_183\nTableTextLeft-95144b44_184", "TableTextLeft-95144b44_185\nTableTextLeft-95144b44_186\nTableTextLeft-95144b44_187\nTableTextLeft-95144b44_188\nTableTextLeft-95144b44_189", "TableTextLeft-95144b44_190\nTableTextLeft-95144b44_191\nTableTextLeft-95144b44_192\nTableTextLeft-95144b44_193\nTableTextLeft-95144b44_194", "TableTextLeft\nTableTextLeft-95144b44_195\nTableTextLeft-95144b44_196\nTableTextLeft-95144b44_197\nTableTextLeft-95144b44_198", "TableTextLeft_2\nTableTextLeft-95144b44_211\nTableTextLeft-95144b44_212\nTableTextLeft-95144b44_213\nTableTextLeft-95144b44_214", "TableHeadingLeft_42\nTableHeadingLeft_43\nTableHeadingLeft_44\nTableHeadingLeft_45\nTableHeadingLeft_46", "TableHeadingLeft_64\nTableHeadingLeft_65\nTableHeadingLeft_66\nTableHeadingLeft_67\nTableHeadingLeft_68", "TableTextLeft_28\nTableTextLeft-95144b44_288\nTableTextLeft-95144b44_289\nTableTextLeft-95144b44_290\nTableTextLeft-95144b44_291", "LI_7", "LBody_17\nLBody_18\nLBody_19\nLBody_20\nLBody_21", "1 \tBeginning in fiscal year 2021, we’re accounting for the purchase of district heating, chilled water, and steam.\n2 \tBecause energy efficiency measures have lasting benefits, energy efficiency savings are calculated cumulatively since 2012. All efficiency measures are retired based on their effective useful lifetime as documented by the California Energy Commission. Due to the COVID-19 pandemic, corporate facilities’ energy use declined temporarily as we adjusted lighting and climate controls due to shutdowns and reduced occupancy. These savings are not included in the total savings from our energy efficiency program initiatives. We also recognize that energy use at our employees’ homes likely increased during this period. We have not accounted for this energy use because we anticipated this impact is small relative to our overall energy use and we’re still evolving our methodology.\n3 \tEnergy savings from supplier energy efficiency improvements are reported as annualized numbers. Beginning in 2020, supplier energy savings are calculated based on the fiscal year instead of on a calendar-year basis.\n4 \tBeginning January 1, 2018, 100 percent of the electricity we use to power our global facilities is sourced from renewable energy.\n5 \tSupply chain renewable electricity capacity (operational) and renewable electricity use for fiscal year 2021 do not include REC purchases Apple made, equivalent to 0.3 GW and 500,000 MWh, respectively, to address a small increase to its carbon footprint.", "1 \tWe define freshwater as drinking-water quality. The majority of our freshwater comes from municipal sources, and less than 5 percent comes from onsite groundwater sources.\n2 \tRecycled water represents a key alternative water source. Our recycled water is sourced primarily from municipal treatment plants, with less than 5 percent coming from onsite treatment. Recycled water is primarily used for irrigation, makeup water in cooling, and toilet flushing.\n3 \tOther alternative sources of water include rainwater and recovered condensate captured onsite. Water used for construction activities like dust control is not included in this total and represents 13 million gallons of water used in fiscal year 2021.\n4 \tTotal does not include construction and demolition waste or electronic waste. We’re refining our methodology for collecting this data and plan to include it in future years. We‘ve also restated the total for 2018 without these categories of waste.\n5 \tResponsible sourcing of wood fiber is defined in Apple’s Sustainable Fiber Specification. Since 2017, all the virgin wood fiber used in our packaging has come from responsible sources.", "TableHeadingLeft_90\nTableHeadingLeft_91\nTableHeadingLeft_92\nTableHeadingLeft_93\nTableHeadingLeft_94", "TableHeadingLeft_121\nTableHeadingLeft_122\nTableHeadingLeft_123\nTableHeadingLeft_124\nTableHeadingLeft_125", "Appendix D_0\nAppendix D_1\nAppendix D_2\nAppendix D_3\nAppendix D_4", "Net comprehensive carbon footprint, facilities energy, carbon, waste, paper, and water data (Apex)\nProduct carbon footprint (Fraunhofer Institute)\nSupplier Clean Energy Program (Apex)\nSupplier Energy Efficiency Program (Apex)\nPackaging fiber and plastic footprint\n(Fraunhofer Institute)", "About this report\nReporting year\nData assurance\nForward-looking statements\nFor more information", "Link_13", "E\nngagement \na\nnd Advocacy", "Since April 2020, we’ve been carbon neutral for our corporate operations, including direct emissions (scope 1); indirect emissions from purchased electricity, steam, heat, or cooling (scope 2); and emissions from business travel and employee commute (scope 3). In 2022, we expanded the scope 3 emissions we include in our corporate footprint and are now also carbon neutral for work from home, third-party cloud services, electricity transmission and distribution losses, and upstream impacts from scope 1 fuels. To reach neutrality, we focused on driving energy efficiency improvements and transitioning our facilities to 100 percent renewable electricity, which we achieved in 2018. These programs have reduced our scope 1 and scope 2 emissions by 67 percent since 2011, when we first began procuring renewable electricity, even as our business grew. We’ve addressed the remaining scope 1, 2, and 3 emissions (for a total of 324,100 metric tons) by securing high-quality carbon credits from projects that protect and restore forests, wetlands, and grasslands.\nIn 2020, we conducted a climate scenario analysis to help us better understand the potential physical and transition effects of climate change. To align with the Task Force on Climate-related Financial Disclosures (TCFD) recommendations, we considered a range of future scenarios, including a scenario below 2° C. Our assessment had a global scope to capture all our corporate facilities — including offices, retail locations, and data centers — as well as 200 supplier facilities, based on spend. The analysis highlighted how our renewable energy program and carbon neutrality goals could contribute to our corporate resilience. It also provided environmental data that we considered when developing business strategies, including around supply chain diversification, and when safeguarding our global assets. The results of the scenario analysis contributed to a larger body of internal assessments on the physical and transition impacts of climate change on our business.\nLink_36\ntext_21", "13\n14\n15\n16", "In October 2022, we urged our materials, manufacturing, and assembly partners to decarbonize their entire Apple footprint by 2030, including all their scope 1 and 2 emissions associated with Apple production. We’ll evaluate our suppliers’ work to decarbonize their Apple-related operations — including running on 100 percent renewable electricity — and we’ll track yearly progress. Progress toward these goals will be a crucial part of the criteria we consider when awarding future business.\nAdditionally, we encourage suppliers to address the greenhouse gas emissions beyond their Apple production, prioritizing clean energy. To help suppliers meet their commitments and go even further, we offer a suite of free learning resources and trainings, and we work closely with our suppliers and local partners to identify effective solutions for renewable energy and carbon removal. \nLink_45\ntext_30", "How suppliers are responding\nHow we support our suppliers\nClean energy projects\nEngaging with our customers", "Galvanizing internal champions\nSupporting supplier capacity\nExpanding access to renewable electricity\nAdvocating for policy change", "Rethinking how aluminum is made\nAddressing fluorinated greenhouse gas emissions\nTransporting products\nImproving employee travel and commute", "Policy makers need to set strong science-based targets to reduce emissions in line with the Paris Agreement and limit warming to 1.5° C.\nGovernments should require that companies measure their emissions along the entire value chain and disclose those emissions publicly. Developing clear rules for disclosure across all scopes of emissions will create best practices, enhance the transparency and integrity of claims, and promote competitive innovation. Governments should align to have the same high-quality standards.\nGovernments should establish or oversee systems to track and verify renewable energy credits and carbon credits to avoid double-counting, to incentivize participation, and to ensure environmental integrity. These credits should be transparent and verified to provide confidence to the public, and they promote energy solutions that significantly reduce emissions, including consideration of the full value chain impact.\nClimate policies should support the development of the new green economy, with new job opportunities focused on advancing clean innovation. Equity should be a guiding principle of policies supporting this economy. Communities that have been disproportionately impacted by climate change should benefit from the economic opportunities of potential solutions.", "Rapidly decarbonizing through economy-wide and sectoral policies\nEncouraging and enabling high-quality measurement and disclosure of emissions\nEnsuring high-quality solutions \nCentering equity and justice in climate solutions ", "LI_0", "LBody_2\nLBody_3\nLBody_4\nLBody_5", "Goal_2\nGoal_3\nGoal_4\nGoal_5", "Highlight_4\nHighlight_5\nHighlight_6\nHighlight_7", "Our Prineville, Reno, and Mesa data centers and 17 supplier facilities have been certified to the Alliance for Water Stewardship standard for leading water management practices. \nLink_58\ntext_43", "The following three pillars define our approach to achieving circularity:\nSourcing and efficiency\nProduct longevity\nCollection and recovery", "SOURCING\nEFFICIENCY\nPRODUCTION\nRECOVERY", "Source materials that are recycled and renewable\nDesign efficiency into our products and manufacturing processes\nMake products that last through durability, repair, and refurbishing\nRecover materials for use in new products", "Sourcing and recycling materials responsibly: \nDesigning for longevity: \nImproving material recovery: \nImproving recycling: ", "Climate change continues to impact global water resources — making freshwater increasingly scarce, flooding more frequent, and access more vulnerable. These effects can be felt in the communities where we and our suppliers operate, which is why we’re committed to managing these resources responsibly. We can do so by reducing our freshwater withdrawals and returning clean water to the watershed. We can limit the use of freshwater. And, where appropriate, we can rely on alternative sources such as recycled water for functions like irrigation and cooling so that freshwater is available for people and ecosystems. \nWater quality is another challenge. We’ve made it a priority to maintain the quality of the water that we use and discharge so that it will be suitable for its next use, contributing to the overall health of local watersheds.\nWater is a community resource, and it demands equitable distribution and access, which requires a collective approach to challenges and local solutions. This is why we’re committed to engaging watershed stakeholders through supporting Alliance for Water Stewardship certifications for our suppliers and key corporate facilities, as well as by participating in local watershed management projects. \nWe aspire to advance water security in the places where we operate through actions that deliver on our guiding principles of improving availability, quality, and access. We’ve aligned our approach across five strategic pillars: low-water design, site efficiency and conservation, site water stewardship, replenishment and nature-based solutions, and leadership and advocacy.", "Next, we focus on identifying steps to use less freshwater in our existing operations. In particular, we prioritize regions where our efforts can immediately reduce stress on local watersheds. Our corporate and supplier sites rely on water for everything from sanitation and climate control to maintaining green spaces and manufacturing. At each point, we seek out efficiencies and approaches to reduce our freshwater use.\nOne challenge we’ve committed to addressing is reducing water use, even as we grow in our corporate facilities. Separating growth from water use requires dedicated focus. In 2022, our facilities used about 1.5 billion gallons of water in our direct operations, a 9 percent increase from 2021. Some of this growth reflects the return to office from the COVID pandemic, but most of the increase was driven by corresponding growth in our data center cooling loads. We expect currently implemented improvements in water use effectiveness (WUE) and new dry cooling designs at our data centers to decouple water use from electricity use.\nLink_90\ntext_75", "Promoting material reuse, composting, and waste diversion across our corporate and retail locations\nDriving solutions internally through communication, reporting, and education\nGetting to zero through innovation\nEngaging with suppliers to reduce waste", "Our environmental approach to design and construction adheres to industry-recognized best practices for green buildings that promote renewable energy, water conservation, energy efficiency, and responsible material sourcing. As of 2022, 100 of our corporate offices and data centers across the world are LEED (Leadership in Energy and Environmental Design) or BREEAM (Building Research Establishment Environmental Assessment Method) certified. That number grows each year as we develop more than 17 million square feet of green building space globally.\nOur global footprint requires that we adapt to the needs of different locations and climates while pursuing our overall objectives. In 2022, four Apple sites in the U.S. and China earned LEED Gold certification. One example is for the construction of a corporate facility in California, where we achieved an 80 percent diversion rate for construction materials — 15 percent more than the average diversion rate typically observed in this region — by separating the majority of recovered materials and sending them to local specialty recyclers. We sourced FSC-certified wood for 98 percent of the wood used in this project. And 50 percent of its structural materials were sourced from regional manufacturers, less than 500 miles away, minimizing material transport by using local suppliers.\nWe bring a similar environmental approach to our retail store development. In Vancouver, Canada, we reopened Apple Pacific Centre, nearly doubling the previous store’s size while reimagining features and elements to incorporate the location as a creative hub for the community. The design drew from the local landscape and ecosystem, including a facade surrounded by 10 magnolia trees sourced from the Pacific Northwest. The store’s exterior is framed by a living wall spanning more than 40 feet and featuring 144 species of locally sourced plants. Designed to stay lush throughout the year, the living wall promotes bee and insect habitats and naturally absorbs heat and traffic noise. Our new store in London, United Kingdom, Apple Brompton Road features a unique curved ceiling and 12 towering Sicilian ficus trees. Both spaces, like all Apple facilities, source 100 percent renewable electricity.\nEach Apple building needs to coexist with its environment while meeting our standards for human-centric design. We work hard to strike this balance and harness the creativity and innovation that these challenges demand.", "Product design\nManufacturing\nProduct use_0\nRecycling", "Apple uses our Regulated Substance Specification to drive our internal teams and supply chain partners to select materials that meet our requirements.\nApple requires suppliers to manage materials and chemicals and helps them switch to safer alternatives.\nCustomers use products made with smarter materials.\nRecyclers can recover materials that are safer for use in new products.", "94\nAppendix _0\nC: Supplier Clean Energy Program \nsupplement", "110\nAppendix _3\nF: \nISO 14001 certification", "Chyulu Hills project_1\nfirst projec\nt\nsecond project", "TableTextLeft_3\nTableTextLeft-95144b44_215\nTableTextLeft-95144b44_216\nTableTextLeft-95144b44_217", "TableTextLeft_4\nTableTextLeft-95144b44_218\nTableTextLeft-95144b44_219\nTableTextLeft-95144b44_220", "TableTextLeft_6\nTableTextLeft-95144b44_226\nTableTextLeft-95144b44_227\nTableTextLeft-95144b44_228", "TableTextLeft_7\nTableTextLeft-95144b44_229\nTableTextLeft-95144b44_230\nTableTextLeft-95144b44_231", "TableTextLeft_8\nTableTextLeft-95144b44_232\nTableTextLeft-95144b44_233\nTableTextLeft-95144b44_234", "TableTextLeft_9\nTableTextLeft-95144b44_235\nTableTextLeft-95144b44_236\nTableTextLeft-95144b44_237", "TableTextLeft_14\nTableTextLeft-95144b44_246\nTableTextLeft-95144b44_247\nTableTextLeft-95144b44_248", "TableTextLeft_15\nTableTextLeft-95144b44_249\nTableTextLeft-95144b44_250\nTableTextLeft-95144b44_251", "TableTextLeft_16\nTableTextLeft-95144b44_252\nTableTextLeft-95144b44_253\nTableTextLeft-95144b44_254", "TableTextLeft_18\nTableTextLeft-95144b44_257\nTableTextLeft-95144b44_258\nTableTextLeft-95144b44_259", "TableTextLeft_19\nTableTextLeft-95144b44_260\nTableTextLeft-95144b44_261\nTableTextLeft-95144b44_262", "TableHeadingLeft_59\nTableHeadingLeft_60\nTableHeadingLeft_61\nTableHeadingLeft_62", "TableTextLeft-95144b44_736\nTableTextLeft-95144b44_737\nTableTextLeft-95144b44_738\nTableTextLeft-95144b44_739", "TableTextLeft-95144b44_747\nTableTextLeft-95144b44_748\nTableTextLeft-95144b44_749\nTableTextLeft-95144b44_750", "TableTextLeft-95144b44_806\nTableTextLeft-95144b44_807\nTableTextLeft-95144b44_808\nTableTextLeft-95144b44_809", "TableTextLeft-95144b44_810\nTableTextLeft-95144b44_811\nTableTextLeft-95144b44_812\nTableTextLeft-95144b44_813", "TableTextLeft-95144b44_814\nTableTextLeft-95144b44_815\nTableTextLeft-95144b44_816\nTableTextLeft-95144b44_817", "TableTextLeft-95144b44_824\nTableTextLeft-95144b44_825\nTableTextLeft-95144b44_826\nTableTextLeft-95144b44_827", "TableTextLeft-95144b44_828\nTableTextLeft-95144b44_829\nTableTextLeft-95144b44_830\nTableTextLeft-95144b44_831", "TableTextLeft-95144b44_832\nTableTextLeft-95144b44_833\nTableTextLeft-95144b44_834\nTableTextLeft-95144b44_835", "TableTextLeft-95144b44_836\nTableTextLeft-95144b44_837\nTableTextLeft-95144b44_838\nTableTextLeft-95144b44_839", "TableTextLeft-95144b44_847\nTableTextLeft-95144b44_848\nTableTextLeft-95144b44_849\nTableTextLeft-95144b44_850", "TableTextLeft-95144b44_861\nTableTextLeft-95144b44_862\nTableTextLeft-95144b44_863\nTableTextLeft-95144b44_864", "TableTextLeft-95144b44_865\nTableTextLeft-95144b44_866\nTableTextLeft-95144b44_867\nTableTextLeft-95144b44_868", "TableTextLeft-95144b44_875\nTableTextLeft-95144b44_876\nTableTextLeft-95144b44_877\nTableTextLeft-95144b44_878", "TableTextLeft-95144b44_885\nTableTextLeft-95144b44_886\nTableTextLeft-95144b44_887\nTableTextLeft-95144b44_888", "Appendix C_0\nApple’s clean energy standards\nSupplier renewable electricity solutions\nSupplier commitments", "*\tBeginning in fiscal year 2022, we expanded our packaging goal boundary to better reflect our impact, resulting in an increase of about 36 percent of our total packaging mass, as reported here. We’re now including retail bags, all finished goods boxes (including plastic content in labels and in-box documentation), packaging sent to our customers as part of Apple Trade In, AppleCare packaging for whole units and service modules (with the exception of plastics needed to protect items from electrostatic discharge), and secondary packaging of Apple products and accessories sold by Apple. Our goal boundary does not include the inks, coatings, or adhesives used in our packaging In addition to our packaging footprint. We also calculate the fiber used at our corporate facilities. In fiscal year 2022, this number was 632 metric tons.\n**\tBeginning in fiscal year 2025, we plan to eliminate plastic from packaging. The boundary of Apple’s packaging footprint reflects the boundary of our plastic elimination goal. It includes retail bags, all finished goods boxes (including plastic content in labels and in-box documentation), packaging sent to our customers as part of Apple Trade In, AppleCare packaging for whole units and service modules (with the exception of plastics needed to protect items from electrostatic discharge), and secondary packaging of Apple products and accessories sold by Apple. Our goal does not include the inks, coatings, or adhesives used in our packaging. We plan to eliminate plastic from the packaging of refurbished products by 2027, once old product packaging designs are phased out.\nLink_229\ntext_108", "94_0\nC:\n Supplier Clean Energy Program \nsupplement_0", "Key\nAchieved\nOngoing\nNot achieved", "Key_0\nAchieved_0\nOngoing_0\nNot achieved_0", "Key_1\nAchieved_1\nOngoing_1\nNot achieved_1", "NormalParagraphStyle_5\nNormalParagraphStyle_6\nNormalParagraphStyle_7", "NormalParagraphStyle_8\nNormalParagraphStyle_9\nNormalParagraphStyle_10", "_No_paragraph_style__176\n_No_paragraph_style__177", "_No_paragraph_style__178\n_No_paragraph_style__179", "_No_paragraph_style__180\n_No_paragraph_style__181", "_No_paragraph_style__182\n_No_paragraph_style__183", "_No_paragraph_style__184\n_No_paragraph_style__185", "_No_paragraph_style__186\n_No_paragraph_style__187", "_No_paragraph_style__188\n_No_paragraph_style__189", "We’re already carbon neutral for our corporate operations, and we’ve set a goal to become carbon neutral for our entire product footprint by 2030. We plan to get there by reducing our emissions by 75 percent compared with 2015, then investing in high-quality carbon removal solutions for the remaining emissions.\nWe aim to make durable, long-lasting products and packaging using only recycled or renewable materials, as well as enhance material recovery. At the same time, we’re committed to stewarding water resources and sending zero waste to landfill.\nThrough chemistry innovation and rigorous controls, we design our products to be safe for anyone who assembles, uses, or recycles them — and to be better for the environment.", "Climate Change\nResources\nSmarter Chemistry", "Highlight\nHighlight_0\nHighlight_1", "Goal\nGoal_0\nGoal_1", "Become carbon neutral for our corporate operations.\nAchieve carbon neutrality for our entire carbon footprint, including products, by 2030, reducing related emissions by 75 percent compared with 2015.\nTransition our entire product value chain, including manufacturing and product use, to 100 percent clean electricity by 2030.", "Highlight \nHighlight_2\nHighlight_3", "Carbon neutrality for our corporate emissions\nMeasuring our footprint\nEvaluating climate risks", "Product manufacturing (scope 3)\nProduct use (scope 3)\nProduct transport (scope 3)", "Improving material and manufacturing efficiency \nUsing recycled materials to lower our product carbon footprint \nDriving product energy efficiency ", "Direct emissions (scope 1)\nIndirect emissions (scope 2)\nProduct manufacturing (scope 3)_0", "Creating new projects\nSupporting social impact\nAdvancing renewable electricity through innovation", "LI", "LBody\nLBody_0\nLBody_1", "Indirect emissions (scope 2)_0\nProduct manufacturing (scope 3)_1\nProduct use (scope 3)_0", "23\nAppendix \nC_0", "Apple has a long history of advocating for strong climate policies. And in 2022 Apple, joined by other companies, submitted an Amicus Brief, urging the Supreme Court to uphold the U.S. EPA’s authority to regulate greenhouse gases from power plants. \nOur climate policy advocacy centers on the following principles:\nRapid decarbonization requires every sector of the economy to adopt new zero-carbon technologies as fossil fuels phase out. We not only support economy-wide policies but also acknowledge that each sector responds to different signals and the maturity of technologies to decarbonize them isn’t equal. Apple’s advocacy for sectoral approaches includes these principles: ", "Materials\nWater_0\nZero waste_0", "Transition to only recycled or renewable materials in our products and packaging, and maximize material efficiency, product longevity, and recovery.\nReduce water impacts in the manufacturing of our products, use of our services, and our facility operations. At the same time, transition to alternative solutions, improve the quality of water that we discharge, and protect shared water resources.\nMinimize overall waste generated and eliminate waste sent to landfill from our manufacturing supply chain as well as corporate offices, data centers, and retail stores.", "standards for \nR_0\nesponsible Sourcing of Materials", "Expanding our use of recycled content\nResponsible sourcing of materials\nIndustry collaboration", "38\n39\n40", "Material\nKey challenges\nProgress", "Optimizing recycling through partnerships and innovation\nDeveloping new approaches to disassembly and recovery\nDesigning for the next generation of recycling", "We continue to monitor and manage water use in our owned-and-operated facilities, and we go beyond the typical practice in our industry by further engaging with our suppliers across our manufacturing supply chain sites to better understand their water use. Only by considering impacts throughout the value chain can we achieve the water management goals that we’ve set for ourselves.\nLink_87\ntext_72", "lt;1%\nOTHER ALTERNATIVE SOURCES\n9%\nRECYCLED WATER\n90%\nFRESHWATER", "We also capture rainwater and recover condensate as alternative water sources for use onsite. \nWe source recycled water as a key alternative to freshwater and use it primarily for irrigation, cooling systems, and toilet flushing. Our recycled water comes mostly from municipal treatment plants, with less than 5 percent coming from onsite treatment.\nWe define freshwater as drinking-water quality, the majority of which comes from municipal sources and less than 5 percent of which comes from groundwater. ", "Site water stewardship\nReplenishment and nature-based solutions\nLeadership and advocacy", "GOAL\nGOAL_0\nGOAL_1", "Avoid exposure to chemicals that could be harmful to human health or the environment.\nIntegrate smarter chemistry innovation into the way that we design and build our products.\nDrive comprehensive reporting of chemicals used in our supply chain to make our products.", "HIGHLIGHT\nHIGHLIGHT_0\nHIGHLIGHT_1", "We performed toxicological assessments on over 1300 materials in 2022 to proactively evaluate and eliminate potentially harmful substances from our products.\nApple led the IPC task group that helped develop and publish a new IPC industry standard on the use of safer cleaners in 2022.\nWe’ve included over 47,000 materials in our comprehensive material library.", "Mapping and engagement_0\nAssessment and management_0\nInnovation_0", "Engage our supply chain partners to comprehensively identify the chemicals in the materials used to make our products and the processes used to make them, allowing us to drive change that goes beyond what’s required for regulatory compliance.\nAssess the potential human health and environmental risks of chemicals to evaluate compliance with our requirements and inform product design.\nDrive the development and use of innovative materials that enable the creation of groundbreaking products and support industry-wide change.", "Building a comprehensive view of the materials in our products\nCreating an inventory of chemicals used in manufacturing\nWorking with suppliers to meet global requirements", "Understanding chemical ingredients leads to better materials for Apple products.\nData helps Apple suppliers manage chemicals and materials when making Apple products.\nApple customers benefit from using products made with safer materials and chemicals.", "Setting and maintaining rigorous chemical safety requirements\nVerifying and developing in the Environmental Testing Lab\nCreating a list of safer cleaners", "Innovating the designs and processes used to make our products\nCreating new, safer chemistries to move the industry forward\nAdvocating for safer alternatives across our industry", "Policy advocacy\nIndustry engagement\nCollaborative impact", "85\nA\nppendix B: Corporate facilities energy supplement", "99\nAppendix _1\nD: Assurance and review statements", "108\nAppendix _2\nE: Environment, Health and Safety Policy", "78\nCarbon \noffsets", "100_0\nNet\n comprehensive carbon footprint, facilities energy, carbon, waste, paper, and water data (Apex)", "102\nProduct\n carbon footprint (Fraunhofer Institute)", "104\nSupplier Clean Energy\n Program (Apex)", "105\nSupplier\n Energy Efficiency Program (Apex)", "106\nPackaging \nfiber and plastic footprint (Fraunhofer Institute)", "78_0\nCarbon _0\noffsets_0", "LI_5", "LBody_14\nLBody_15", "TableTextLeft_10\nTableTextLeft-95144b44_238\nTableTextLeft-95144b44_239", "TableTextLeft_11\nTableTextLeft-95144b44_240\nTableTextLeft-95144b44_241", "TableTextLeft_12\nTableTextLeft-95144b44_242\nTableTextLeft-95144b44_243", "TableTextLeft_13\nTableTextLeft-95144b44_244\nTableTextLeft-95144b44_245", "TableTextLeft_17\nTableTextLeft-95144b44_255\nTableTextLeft-95144b44_256", "TableTextLeft_20\nTableTextLeft-95144b44_263\nTableTextLeft-95144b44_264", "TableTextLeft_21\nTableTextLeft-95144b44_265\nTableTextLeft-95144b44_266", "TableTextLeft_22\nTableTextLeft-95144b44_267\nTableTextLeft-95144b44_268", "TableTextLeft_23\nTableTextLeft-95144b44_269\nTableTextLeft-95144b44_270", "TableTextLeft_24\nTableTextLeft-95144b44_271\nTableTextLeft-95144b44_272", "TableTextLeft-95144b44_273\nTableTextLeft-95144b44_274\nTableTextLeft-95144b44_275", "TableTextLeft-95144b44_276\nTableTextLeft-95144b44_277\nTableTextLeft-95144b44_278", "TableTextLeft_25\nTableTextLeft-95144b44_279\nTableTextLeft-95144b44_280", "TableTextLeft-95144b44_281\nTableTextLeft-95144b44_282\nTableTextLeft-95144b44_283", "TableTextLeft_26\nTableTextLeft-95144b44_284\nTableTextLeft-95144b44_285", "TableTextLeft_27\nTableTextLeft-95144b44_286\nTableTextLeft-95144b44_287", "TableHeadingLeft_97\nTableHeadingLeft_98\nTableHeadingLeft_99", "TableTextLeft-95144b44_571\nTableTextLeft-95144b44_572\nTableTextLeft-95144b44_573", "TableTextLeft-95144b44_574\nTableTextLeft-95144b44_575\nTableTextLeft-95144b44_576", "TableTextLeft-95144b44_577\nTableTextLeft-95144b44_578\nTableTextLeft-95144b44_579", "TableTextLeft-95144b44_580\nTableTextLeft-95144b44_581\nTableTextLeft-95144b44_582", "TableTextLeft-95144b44_583\nTableTextLeft-95144b44_584\nTableTextLeft-95144b44_585", "TableTextLeft-95144b44_586\nTableTextLeft-95144b44_587\nTableTextLeft-95144b44_588", "TableTextLeft-95144b44_589\nTableTextLeft-95144b44_590\nTableTextLeft-95144b44_591", "TableTextLeft-95144b44_592\nTableTextLeft-95144b44_593\nTableTextLeft-95144b44_594", "TableTextLeft-95144b44_595\nTableTextLeft-95144b44_596\nTableTextLeft-95144b44_597", "TableTextLeft-95144b44_598\nTableTextLeft-95144b44_599\nTableTextLeft-95144b44_600", "TableTextLeft-95144b44_601\nTableTextLeft-95144b44_602\nTableTextLeft-95144b44_603", "TableTextLeft-95144b44_604\nTableTextLeft-95144b44_605\nTableTextLeft-95144b44_606", "TableTextLeft-95144b44_607\nTableTextLeft-95144b44_608\nTableTextLeft-95144b44_609", "TableTextLeft-95144b44_610\nTableTextLeft-95144b44_611\nTableTextLeft-95144b44_612", "TableTextLeft-95144b44_613\nTableTextLeft-95144b44_614\nTableTextLeft-95144b44_615", "TableTextLeft-95144b44_616\nTableTextLeft-95144b44_617\nTableTextLeft-95144b44_618", "TableTextLeft-95144b44_619\nTableTextLeft-95144b44_620\nTableTextLeft-95144b44_621", "TableTextLeft-95144b44_622\nTableTextLeft-95144b44_623\nTableTextLeft-95144b44_624", "TableTextLeft-95144b44_625\nTableTextLeft-95144b44_626\nTableTextLeft-95144b44_627", "TableTextLeft-95144b44_628\nTableTextLeft-95144b44_629\nTableTextLeft-95144b44_630", "TableTextLeft-95144b44_631\nTableTextLeft-95144b44_632\nTableTextLeft-95144b44_633", "TableTextLeft-95144b44_634\nTableTextLeft-95144b44_635\nTableTextLeft-95144b44_636", "TableTextLeft-95144b44_637\nTableTextLeft-95144b44_638\nTableTextLeft-95144b44_639", "TableTextLeft-95144b44_640\nTableTextLeft-95144b44_641\nTableTextLeft-95144b44_642", "TableTextLeft-95144b44_643\nTableTextLeft-95144b44_644\nTableTextLeft-95144b44_645", "TableTextLeft-95144b44_646\nTableTextLeft-95144b44_647\nTableTextLeft-95144b44_648", "TableTextLeft-95144b44_649\nTableTextLeft-95144b44_650\nTableTextLeft-95144b44_651", "TableTextLeft-95144b44_652\nTableTextLeft-95144b44_653\nTableTextLeft-95144b44_654", "TableTextLeft-95144b44_655\nTableTextLeft-95144b44_656\nTableTextLeft-95144b44_657", "TableHeadingLeft_100\nTableHeadingLeft_101\nTableHeadingLeft_102", "TableTextLeft-95144b44_818\nTableTextLeft-95144b44_819\nFootnotesnoindent-e37582d3", "TableTextLeft-95144b44_840\nTableTextLeft-95144b44_841\nTableTextLeft-95144b44_842", "TableTextLeft-95144b44_843\nTableTextLeft-95144b44_844\nFootnotesnoindent-e37582d3_3", "TableTextLeft-95144b44_851\nTableTextLeft-95144b44_852\nFootnotesnoindent-e37582d3_5", "TableTextLeft-95144b44_869\nTableTextLeft-95144b44_870\nFootnotesnoindent-e37582d3_7", "TableTextLeft-95144b44_879\nTableTextLeft-95144b44_880\nFootnotesnoindent-e37582d3_9", "TableTextLeft-95144b44_889\nTableTextLeft-95144b44_890\nFootnotesnoindent-e37582d3_11", "100_1\nNet_0\n comprehensive carbon footprint, facilities energy, carbon, waste, paper, and water data (Apex)_0", "102_0\nProduct_0\n carbon footprint (Fraunhofer Institute)_0", "104_0\nSupplier Clean Energy_0\n Program (Apex)_0", "105_0\nSupplier_0\n Energy Efficiency Program (Apex)_0", "106_0\nPackaging _0\nfiber and plastic footprint (Fraunhofer Institute)_0", "Appendix E_0\nMission Statement\nGuiding Principles", "20_0\nClean\n electricity", "71_0\nSupporting commun\nities", "76_0\nA:\n Environmental data", "85_0\nB:\n Corporate facilities energy supplement", "99_0\nD\n: Assurance and review statements", "108_0\nE_0\n: Environment, Health and Safety Policy", "110_0\nF\n: ISO 14001 certification", "Launch of the Supplier Clean Energy Portal\nInitial Apple investment toward the development of 500 megawatts of solar and wind projects to address upstream emissions in Apple’s supply chain\nSupplier Code of Conduct requires suppliers to maintain an inventory of air emissions, including greenhouse gases", "NormalParagraphStyle_12\nNormalParagraphStyle_13\nNormalParagraphStyle_14", "NormalParagraphStyle_16\nNormalParagraphStyle_17", "NormalParagraphStyle_18\nNormalParagraphStyle_19\nNormalParagraphStyle_20", "TableHeadingLeft-f254a1e7\nTableHeadingLeft-f254a1e7_0\nTableHeadingLeft-f254a1e7_1", "TableHeadingLeft-f254a1e7_2\nTableHeadingLeft-f254a1e7_3\nTableHeadingLeft-f254a1e7_4", "NormalParagraphStyle_21\nNormalParagraphStyle_22\nNormalParagraphStyle_23", "NormalParagraphStyle_24\nNormalParagraphStyle_25\nNormalParagraphStyle_26", "NormalParagraphStyle_27\nNormalParagraphStyle_28\nNormalParagraphStyle_29", "C\nlimate Change", "R\nesources", "S\nmarter Chemistry", "Clean electricity\n4", "Materia\nls", "Link_28\ntext_13", "20 percent of all materials shipped in products in 2022 came from recycled sources. \nWe’ve made new commitments to phase out PFAS from our products and manufacturing processes.", "Achieved carbon neutrality since April 2020 by implementing energy efficiency initiatives, sourcing 100 percent renewable electricity for Apple facilities, and securing carbon offsets for the remaining corporate emissions.\nAs of March 2023, over 250 suppliers have committed to transitioning to 100 percent renewable electricity for their Apple production, with over 85 percent of Apple's direct spend for materials, manufacturing, and assembly of our products worldwide included \nin those commitments.", "7\n8", "Link_33\ntext_18", "Link_35\ntext_20", "*\tError bars: We’re continuously refining our methodology to improve our carbon footprint estimate. But there’s uncertainty inherent to modeling product-related carbon emissions, which we’ve illustrated through error bars in this graphic.\n**\tFuture emissions: Future emissions, including offsets and removals, are displayed as a linear trend to reach net-zero carbon emissions by 2030. Actual future emissions will likely not be linear.", "Link_37\ntext_22", "Low-carbon design addresses emissions from:\nProduct energy efficiency", "Link_41\ntext_26", "Operating Apple facilities efficiently\nImproving energy efficiency \nin our supply chain", "69.4M\n1.3M", "We reduced Apple’s facilities energy use by 69.4 million kilowatt-hours through efficiency efforts implemented in 2022.\nSuppliers in our Supplier Energy Efficiency Program avoided more than 1.3 million annualized metric tons of supply chain carbon emissions in 2022.", "Link_46\ntext_31", "Appendix\n B", "Transitioning our suppliers to renewable electricity\nProduct use", "Product manufacturing (scope 3)_2\nProduct transport (scope 3)_0", "Link_55\ntext_40", "Investing in nature\nHigh-quality carbon offsets as an interim solution", "27\n28", "Our product packaging contains only 4 percent plastic — down from 21 percent in 2015.\nOur corporate facilities waste diversion rate increased to \n71 percent, driven by progress at our data centers. ", "30\n31We’ve also achieved several milestones with copper and zinc. For iPad models introduced in October 2022, we’re using 100 percent recycled copper foil in the main logic board. For Mac Studio and Studio Display, we’ve developed a brass alloy using 100 percent recycled copper and zinc for use in the AC inlet and cable prongs. Finally, since last year, we’ve nearly doubled our use of recycled cobalt in batteries to 27 percent across iPhone, iPad, and Mac devices year over year, bringing the total recycled cobalt shipped in 2022 to 25 percent.32Prioritizing our effortsOur recycled and renewable efforts continue to focus on 14 materials that we’ve prioritized based on a broad range of environmental, social, and supply chain impacts. (These are outlined in detail in our Material Impact Profiles", "33\n34", "35\n36", "Link_63\ntext_48", "41\n42", "44\nConflict Minerals Report", "Link_74\ntext_59", "50\n51", "55\n56", "s\nupport page", "58\n59", "Link_85\ntext_70", "LBody_6\nLBody_7", "LBody_8\nLBody_9", "LBody_10\nLBody_11", "LBody_12\nLBody_13", "69\n70", "Reducing waste at our corporate facilities\nTaking a zero-waste approach with our suppliers ", "150\n2.5M", "Smarter chemistry matters at every stage in the product life cycle\nComprehensive chemical mapping", "47K\n93% ", "47,000 validated materials are stored in our comprehensive materials library.\nWe collected detailed chemical information of 93 percent of Mac Studio computers by mass and over 91 percent on average for all iPhone, iPad, and Mac products released in 2022.", "Link_101\ntext_86", "76\nAppendix A: Environmental data\t77", "112\nReport notes", "113\nEnd notes", "79\nCarbon footprint by product", "81\nApple’s life cycle assessment methodology", "82\nEnergy", "83\nResources_0", "84\nNormalizing factors", "77\nGreenhouse gas emissions_0", "79_0\nCarbon footprint by product_0", "81_0\nApple’s life cycle assessment methodology_0", "82_0\nEnergy_0", "83_0\nResources_1", "84_0\nNormalizing factors_0", "Link_132\ntext_90", "Chyulu Hills project_0\nCispatá Mangrove project in Colombia.", "TableHeadingLeft_54\nTableHeadingLeft_55", "TableHeadingLeft_56\nTableHeadingLeft_57", "Link_138\ntext_94", "When conducting a product life cycle assessment (LCA), we calculate carbon emissions using the 100-year time horizon global warming potentials (GWP100) from the 2014 IPCC Fifth Assessment Report (AR5),* including biogenic carbon. The following details the five steps we use to conduct our LCA:\nThere is inherent uncertainty in modeling carbon emissions due primarily to data limitations. For the top component contributors to Apple’s carbon emissions, Apple addresses this uncertainty by developing detailed process-based environmental models with Apple-specific parameters. For the remaining elements of Apple’s carbon footprint, we rely on industry average data and assumptions.", "TableHeadingLeft_76\nTableTextLeft-95144b44_292", "TableHeadingLeft_77\nTableTextLeft-95144b44_372", "TableHeadingLeft_78\nTableTextLeft-95144b44_402", "TableHeadingLeft_86\nTableTextLeft-95144b44_445", "TableHeadingLeft_87\nTableTextLeft-95144b44_482", "TableHeadingLeft_88\nTableTextLeft-95144b44_532", "TableTextLeft-95144b44_658\nTableTextLeft-95144b44_659", "TableTextLeft-95144b44_804\nTableTextLeft-95144b44_805", "TableTextLeft-95144b44_820\nTableTextLeft-95144b44_821", "TableTextLeft-95144b44_822\nTableTextLeft-95144b44_823", "TableHeadingLeft_109\nTableHeadingLeft_110", "Footnotesnoindent-e37582d3_1\nFootnotesnoindent-e37582d3_2", "TableHeadingLeft_111\nTableHeadingLeft_112", "TableTextLeft-95144b44_845\nTableTextLeft-95144b44_846", "TableHeadingLeft_113\nTableHeadingLeft_114", "TableTextLeft-95144b44_853\nTableTextLeft-95144b44_854", "TableTextLeft-95144b44_855\nTableTextLeft-95144b44_856", "TableTextLeft-95144b44_857\nTableTextLeft-95144b44_858", "TableTextLeft-95144b44_859\nTableTextLeft-95144b44_860", "TableHeadingLeft_115\nTableHeadingLeft_116", "TableTextLeft-95144b44_871\nTableTextLeft-95144b44_872", "TableTextLeft-95144b44_873\nTableTextLeft-95144b44_874", "TableHeadingLeft_117\nTableHeadingLeft_118", "TableTextLeft-95144b44_881\nTableTextLeft-95144b44_882", "TableTextLeft-95144b44_883\nTableTextLeft-95144b44_884", "Footnotesnoindent-e37582d3_10", "Link_139\ntext_95", "TableHeadingLeft_119\nTableHeadingLeft_120", "TableTextLeft-95144b44_891\nTableTextLeft-95144b44_892", "TableTextLeft-95144b44_893\nTableTextLeft-95144b44_894", "Footnotesnoindent-e37582d3_12", "Link_140\ntext_96", "LI_8", "LBody_22\nLBody_23", "Supplier renewable energy procurement mechanisms \n(FY2022)\nSupplier renewable energy technologies \n(FY2022)", "8_0\nwww.ipcc.ch/2018/10/08/summary-for-policymakers-of-ipcc-special-report-on-global-warming-of-1-5c-approved-by-governments", "15_0\nwww.energystar.gov", "16_0\nwww.epeat.net", "26_0\nwww.ipcc.ch/site/assets/uploads/sites/2/2019/02/SR15_Chapter2_Low_Res.pdf", "• Power adapter, no load: Condition in which the Apple USB Power Adapter with the USB-C to Lightning Cable (1 m) is connected to AC power but not connected to iPhone\n• Power adapter efficiency: Average of the Apple 20W USB Power Adapter with the USB-C to Lightning Cable (1 m) measured efficiency when tested at 100 percent, 75 percent, 50 percent, and 25 percent of the power adapter’s rated output current", "2_0\nGHG Protocol Corporate Accounting and Reporting Standard", "68_0\npage 83", "1\t2021 renewable electricity figures associated with Apple’s Supplier Clean Energy Program do not include REC purchases that Apple made to address a small increase to its carbon footprint. When accounting for the REC purchases, the total renewable energy online in Apple’s supply chain was 10.6 gigawatts, generating 18.6 million megawatt-hours and avoiding 14.2 million metric tons of carbon emissions.\n2 \tApple’s independent assurance provider for the Supplier Clean Energy Program conducts work against standard procedures and guidelines for external verification of sustainability reports, based on current best practice in independent assurance. The procedures are based on principles and methods described in International Standard on Assurance Engagements (ISAE) 3000 (Revised), Assurance Engagements Other than Audits or Reviews of Historical Financial Information (Effective for assurance reports dated on or after December 15, 2015), issued by the International Auditing and Assurance Standards Board, and ISO 14064-3:2019, Greenhouse gases — Part 3: Specification with guidance for the verification and validation of greenhouse gas statements.", "Engagement\n and Advocacy", "3_0\nLetter from Lisa Jackson", "4_0\nReport highlights", "5_0\nOur environmental strategy_0", "6_0\nGoals_0", "8_1\nGoals and progress_0", "9_0\nOur approach_0", "14_0\nLow-carbon design_1", "17_0\nEnergy efficiency_1", "26_1\nDirect emissions abatement_1", "27_0\nCarbon removal_1", "32_0\nGoals and progress_1", "33_0\nOur approach_1", "34_0\nMaterials_0", "48_0\nWater_1", "52_0\nZero waste_1", "57_0\nGoals and progress_2", "58_0\nOur approach_2", "59_0\nMapping and engagement_1", "62_0\nAssessment and management_1", "64_0\nInnovation_1", "68_1\nOur approach_3", "68_2\nListening", "69_0\nAchieving change together_0", "112_0\nReport notes_0", "113_0\nEnd notes_0", "Supplier energy efficiency:\n1.4 million metric tons avoided", "Low-carbon materials*:\n7.8 million metric tons avoided", "Supplier clean energy:\n17.4 million metric tons avoided", "Use of renewable electricity:\n1.2 million metric tons avoided", "Product Use RECs:\n0.2 million metric tons avoided", "Emissions categories \n(% of gross emissions)", "Supply chain clean energy progress\nRenewable electricity operational and committed in gigawatts (GW)", " 4%\n 66%", "2022_0\n276,000", "86.6%\n67.9%", "74.5%\n44.1%", "66.1%\n32.1%", "52.5%\t\n21.1%", "\t\tApple Authorized Service Providers,\nretail stores, and Independent \nRepair Providers\n\t\tSelf Service Repair", "**\tBack glass repair is available for iPhone 14 and iPhone 14 Plus. \nLink_269", "TR_24", "TH", "TableHeadingLeft_126\nTableHeadingLeft_127", "Bodytext_61\nBodytext_62", "Bodytext_63\nBodytext_64", "Bodytext_65\nBodytext_66", "Bodytext_67\nBodytext_68", "Bodytext_69\nBodytext_70", "Bodytext_71\nBodytext_72", "Bodytext_73\nBodytext_74", "Bodytext_75\nBodytext_76", "Bodytext_77\nBodytext_78", "Bodytext_79\nBodytext_80", "Bodytext_81\nBodytext_82", "Bodytext_83\nBodytext_84", "More than 100 suppliers committed to 100 percent renewable electricity for \nApple production\nAll Apple products’ final assembly sites committed to 100 percent renewable electricity for Apple production", "Key supplier commitments reached in major supply chain countries\nFirst in-person training hosted by Apple for over 30 suppliers in China", "2030_0\nGOAL_2", "2030_1\nGOAL_3", "_No_paragraph_style__171\n_No_paragraph_style__172", "2025_0\nGOAL_4", " 21%\n 49%", "2016_0\n165,000", " 6%\n 59%", "2020_0\n226,000_0", " 14%\n 56%", "2017_0\n169,000", " 21%_0\n 48%", "2015_0\n172,000", " 8%\n 59%_0", "2019_0\n189,000_0", " 10%\n 58%", "2018_0\n187,000_0", " 4%_0\n 63%", "2021_0\n257,000_0", "Reflections", "Apple is on a journey to 2030. ", "Our environmental strategy", "The environmental challenges we face today are significant, and we’re responding with urgency and innovation. We approach our work by focusing on fundamental questions. What matters most? And where can we make the greatest impact? These questions — and the data underlying their answers — guide our work across our strategic pillars of climate change, resources, and smarter chemistry. We know we’re not alone in working to reduce our environmental footprint. So we’re engaging with others to support our efforts and find opportunities to move our industries forward.", "Low-carbon design", "Energy efficiency", "Direct emissions abatement", "Carbon removal", "Water", "Zero waste", "Mapping and engagement", "Assessment and management", "Innovation", "Engaging with others — from industry partnerships to policy advocacy — is integral to advancing our environmental work and to achieving an even greater impact that considers communities around the world. We learn from feedback, and we work with partners to influence change in our industries. And we’re transparent about our challenges and achievements to inspire others to take their own action.", "Report highlights ", "Throughout 2022, we’ve achieved progress across our environmental goals as an organization. Our employees, suppliers, industry partners, and other stakeholders have each played an integral role in helping us to reduce our impact, create equitable solutions, and drive broader change across industries and our communities. These efforts have yielded positive results across our business. And where we’ve encountered challenges, we’ve also identified opportunities to continue to make a difference.", "1", "Since April 2020, we’ve achieved carbon neutrality for our corporate emissions\n", "2", "We reduced our overall emissions across scopes 1, 2, and 3\n", "3", "We’re making progress toward our goal of transitioning to 100 percent recycled and renewable materials in our products. In 2022, 20 percent of the materials we shipped in Apple products came from recycled sources, including recycled aluminum, rare earth elements, tin, cobalt, gold, tungsten, steel, brass, copper, and plastic.\n", "page 13", "Read more on \n", "page 7", "Read more on \n", " page 19", "Read more on\n", "page 27", "Read more on \n", "page 34", "Read more on\n", "page 48", "Read more on \n", "page 39", "Read more on \n", "page 66", "Read more on \n", "page 58", "Read more on \n", "page 73", "Read more on \n", "Goals", "We create products and services to enrich the lives of our customers. And we strive to do so in a way that sustains the ecosystems and resources that we all depend on. Setting ambitious goals is essential to this — to drive the innovation and collaboration that make change possible and to be transparent about and accountable for our progress.", "5", "Achieve carbon neutrality for our entire carbon footprint by 2030, and reach our emissions reduction target\n", "We’ve reduced the emissions across our value chain by over 45 percent since 2015. ", "6", "Eliminate plastics in our packaging by 2025\n", "Climate Change", "We aim to make all our products carbon neutral by 2030", "Goals and progress", "Over 45 percent emissions reduction since 2015 across our value chain.", "Our approach", "Climate change continues to define the world around us in ways that impact our daily lives. Shifting weather patterns threaten the food we eat. Widespread wildfires and flooding devastate the communities we live in and the ecosystems we depend on. These dangers are felt around the globe and are developing at an unprecedented pace. The stakes are fundamental: Human rights like life, health, food, and an adequate standard of living face grave risks, disproportionately affecting low-income and historically marginalized communities. The worst, and potentially irreversible, impacts of climate change can be prevented with global, comprehensive, and immediate action. ", "As a large global company, we believe it’s our responsibility to take strong, decisive, and inclusive steps to mitigate our impact on the climate. We’ve committed to achieving carbon neutrality across our entire value chain by 2030 — reducing emissions by 75 percent compared with 2015 and balancing the residual emissions with high-quality carbon removal.\n", "9", "We began by making the transition to sourcing 100 percent renewable electricity at our offices, retail stores, and data centers, which we achieved in 2018. And in 2020, we achieved carbon neutrality for our corporate emissions.\n", "10", "Calculate our footprint across our value chain: Our responsibility extends beyond our direct operations to our product-related emissions. That’s why we model our emissions across the entire life cycle of our products — including the sourcing of raw materials, manufacturing, shipping, product use, and end-of-life processing.\n", "11", "Set ambitious targets: Our plan to reach carbon neutrality by 2030 centers around our strategy to reduce emissions by 75 percent, relative to our 2015 carbon footprint. This reduction aligns with what current climate science shows is necessary to limit warming to 1.5° C.\n", "$4.7B", "Annual Green Bond Impact Report (PDF)", "We’ve issued $4.7 billion in green bonds to model how businesses can drive investments to reduce global emissions. In our latest Annual Green Bond Impact Report, we share progress on the projects funded in 2022. Read our latest \n", "Our 10-year Climate Roadmap addresses Apple’s carbon footprint through five pillars:", "Apple’s comprehensive carbon footprint", "This past year, we’ve continued our efforts to reduce Apple’s emissions. In 2022, our environmental programs avoided over 28 million metric tons of emissions across all scopes. Initiatives that we’ve been growing for years — like sourcing 100 percent renewable electricity for our facilities, transitioning suppliers to renewable energy, and using low-carbon materials in products — have yielded clear results. Thanks to this work, we’re decoupling business growth from emissions: While our revenue has grown by over 68 percent since 2015, our gross emissions have decreased by over 45 percent. ", "page 14", "*\tLow-carbon materials represents emissions savings from transitioning to recycled materials in our products, or use of low-carbon aluminum, as described on \n", "Progress toward net-zero emissions", "12", "Our plan to become carbon neutral by 2030 centers around a 75 percent emissions reduction target compared with our 2015 footprint. We’ve already reduced our gross carbon footprint\n", "Appendix D", "We account for our carbon footprint by following internationally recognized standards, like the World Resources Institute (WRI) Greenhouse Gas Protocol and ISO 14040/14044. For our corporate footprint, we calculate emissions based on consumption data when available; when it’s not available, we rely on reasonable assumptions and methodologies to estimate emissions, which we revisit and improve on regularly. For our product hardware carbon footprint, we use a life cycle–based approach. Apple-specific data drives many of our most critical calculations; in cases where that data isn’t available, we rely on secondary sources, including industry averages. We continually refine our model to include new sources of product life cycle data — and offer a more accurate and transparent assessment of our footprint. Our comprehensive carbon footprint and our methodology are assessed by a third party each year to confirm accuracy and transparency (see \n", "CDP Climate Change 2022 submission (PDF)", "We’re committed to managing regulatory, reputational, and market risks related to climate change. For more information on these climate-related risks and Apple’s governance of these risks, read our \n", "*\tWe’ve reduced corporate emissions through energy efficiency, renewable electricity, and low-carbon fuels, and we’re applying carbon offsets to the remaining emissions.", "Low-carbon design", "Each Apple product represents an opportunity to reduce our carbon footprint — even small changes can yield significant results. Our carbon footprint helps us identify opportunities to reduce the carbon intensity of our product designs. We prioritize the materials and components that account for significant portions of our carbon emissions. This means that the choices we make product by product can scale toward reducing our overall footprint. These priorities inform our work to design for material efficiency and increased use of recycled and renewable materials.", " page 26", "Materials selection is another way to reduce the carbon footprint of our products. Our strategy is to transition to materials manufactured using low-carbon energy and recycled content. We’ve prioritized the materials and components that make up a large part of our product carbon footprint to move us closer to our goal of product carbon neutrality. And to accelerate collective efforts, we signed on to the First Movers Coalition’s near-zero emissions primary aluminum commitment for 2030 (see more on\n", "page 26", "For products shipped in 2022 that had enclosures made with primary aluminum, we prioritized the use of aluminum smelted using low-carbon sources of electricity rather than fossil fuels, for a lower carbon impact. We also shipped iPhone SE enclosures that contained ELYSIS aluminum, which was smelted without generating greenhouse gas emissions (see \n", "With each generation of products, we strive to improve energy efficiency. For example, the transition to Apple silicon on Mac devices continues to drive these improvements. The latest generation of our Pro chips is enabling more Mac devices to run with improved energy efficiency. For example, MacBook Pro with M2 Pro and M2 Max made significant progress in reducing energy use in 2022, and the new Apple TV 4K is designed to minimize its impact on the environment, using nearly 30 percent less power than the previous generation while achieving more powerful performance.\n", "71%", "page 24", "Switching to recycled and low-carbon aluminum has decreased our carbon emissions associated with aluminum by 71 percent since 2015. Read more about how we plan to address emissions from our customers’ use of Apple products on \n", "17", "Apple TV 4K is designed to use nearly 30 percent less power than the previous generation while achieving more powerful performance.\n", "18", "Over the course of a year, Mac Studio uses up to 1000 kilowatt-hours less energy than a high-end PC desktop.\n", "19", "iPhone 14 uses 57 percent less energy than the U.S. Department of Energy’s requirements for battery charger systems.\n", "Energy efficiency", "Our energy efficiency goals extend well beyond our products. We’re focused on using less energy across our operations, beginning with how we design, operate, and maintain our facilities. And we continue these same efforts into our supply chain. Energy efficiency is also essential to meeting our 2030 carbon neutrality goal. So we track and monitor energy use across our operations and supply chain, conducting audits to find opportunities to work more efficiently. And we view our energy use holistically, from the point of design to the point of manufacture.", "Energy efficiency addresses emissions from:", "Feature", "Apple calls on global supply chain to decarbonize by 2030", "Reducing energy use begins with measuring and understanding the carbon footprint of a business. Since 2019, as part of Apple’s Supplier Code of Conduct, we’ve required our suppliers to regularly identify sources of emissions, measure their scope 1 and scope 2 carbon emissions, and make this information available to Apple as needed. By understanding a supplier’s carbon emission sources and quantity, we can provide resources that help the supplier create an action plan to decarbonize and maximize energy efficiency opportunities. Further, we empower our suppliers to utilize the trainings, resources, and tools provided through our programs to extend their efforts beyond Apple to their own supply chains and customers. ", "page 22", "Apple has made significant progress in reducing emissions in our supply chain through work on energy efficiency and renewable energy (see \n", "Clean electricity", "20", "We’re at a pivotal moment in addressing climate change. Renewable energy is poised to replace fossil fuels as the future of electricity. Its adoption means cleaner air and lower carbon emissions. Apple has generated or sourced 100 percent renewable electricity for its corporate operations since 2018,\n", "To address gaps in our renewable energy needs beyond what’s provided by Apple-created projects, we directly purchase renewable electricity through available utility green energy programs (about 5 percent of our total corporate load in 2022). Colocation and distribution facility vendors supply about 3.2 percent of our total load of renewable energy. And in certain situations, we purchase Renewable Energy Certificates (RECs).22 These RECs, which account for about 3.5 percent of our total load, share the same power grid as the Apple facility that they support, where available. These purchases are subject to the same standards as our Apple‑created renewable energy projects. \n", "page 25", "We launched our Power for Impact program in 2019 to help provide local communities with needed energy resources. With funding from Apple, local communities and organizations gain access to cost‑effective energy. At the same time, Apple retains the projects’ environmental attributes, benefiting the community, our company, and the environment. Apple is currently supporting 20 renewable electricity projects around the world, including in the Philippines, Thailand, and South Africa. Read more about Power for Impact on \n", "Maintaining 100 percent renewable electricity for Apple facilities", "Direct ownership\n(~9 percent of Apple‑created projects)\nWe build our own projects — including solar, biogas fuel cells, and low-impact hydro projects — to provide renewable electricity, where feasible.", "Equity investment\n(~3 percent of Apple‑created projects)\nWe invest capital in new solar PV or wind projects in some markets, matching the renewable energy generated with our energy use.", "Long-term renewable energy contracts\n(~88 percent of Apple‑created projects)\nThrough long-term power purchase agreements, virtual power purchase agreements, and other forms of long-term commitments, we help support new, local, and primarily solar PV and wind projects in line with our renewable energy–sourcing standards.", "Clean electricity addresses emissions from:", "90%", "Apple-created renewable sources account for about 90 percent of the renewable electricity that our facilities use.", "In 2022, the 13.7 gigawatts of renewable energy procured by suppliers and online in Apple’s supply chain generated 23.7 million megawatt-hours of clean energy, avoiding 17.4 million metric tons of carbon emissions — a 23 percent increase over 2021.\n", "page 29", "In China, this includes the Green Power Trading Platform and cross-provincial power purchasing agreements that have provided suppliers with more options. South Korea has expanded its options for green power, including power purchase agreements and the ability to purchase renewable energy credits. Japan has also introduced new renewable energy options, including power purchase agreements and price-competitive nonfossil credits that have the potential to scale access to renewable energy across the market. While we’ve seen progress in key markets, we continue to advocate for policies that enable renewable energy to compete fairly with fossil fuels, opening more avenues for our suppliers to make the transition (see \n", "page 14", "When Apple committed to running our business on 100 percent renewable electricity in 2013 — a goal we met for our facilities in 2018 — we were early leaders in this transition. As we address emissions tied to the electricity that our products use globally, our guiding principles focus on three areas: exploring innovative solutions to minimize carbon emissions from product use, including energy efficiency (see \n", "here", "In many places, electricity comes from clean sources like the sun or wind at certain times of the day. Customers play an important role in deciding when to pull electricity from the grid. We’re building programs to make those decisions easier for customers. Clean Energy Charging, which became available in the United States in fall 2022 through iOS 16, enables customers to help decrease the carbon footprint of iPhone. The new feature looks at the sources of electricity during expected charge times, and it optimizes to reduce carbon by charging when the grid is using cleaner energy sources (learn more \n", "As of March 2023, over 250 suppliers making up over 85 percent of Apple’s direct spend for materials, manufacturing, and assembly of our products worldwide have committed to using renewable electricity for their Apple production. In total, the Supplier Clean Energy Program now has over 20 gigawatts of clean energy commitments, of which nearly two-thirds are already operational. ", "In the past two years, together with our suppliers, we've more than tripled the amount of renewable electricity online in our supply chain. ", "FEATURE", "Increasing access to clean energy around the world ", "Power for Impact is driven by the idea that access to clean energy creates opportunities within communities while benefiting our climate. Apple launched the initiative in 2019 to provide underresourced communities with renewable power while supporting economic growth and social impact.", "Direct emissions abatement", "Some materials that are integral to our products result in significant emissions. The same is true for certain manufacturing processes and the transportation of our products. To address these emissions, we seek technological solutions and emissions abatement, and we’re moving away from fossil fuels. ", "24", "In 2022, Apple shipped iPhone SE devices using ELYSIS aluminum, building on our 2019 purchase from the first-ever commercial batch of aluminum resulting from the joint venture, used in the production of the 16-inch MacBook Pro.\n", "25", "To transport our products from our manufacturers to our customers, we’re shifting to shipping modes that are less carbon-intensive than air transport, such as by ocean, whenever possible. In 2022, we launched three new products — Mac Studio, Studio Display, and AirPods (3rd generation) — that leveraged ocean shipping by enabling an ocean supply chain from our manufacturers. On average, shipping an item by ocean instead of on an airplane reduces transportation-related emissions by 95 percent.\n", "Direct emissions abatement addresses emissions from:", "Carbon removal", "26", "Our 2030 Climate Roadmap aims to reduce our emissions by 75 percent compared with 2015 levels, as well as scale up carbon removal strategies to address the remaining emissions that we can’t yet avoid. We’re exploring a range of carbon removal solutions to do so, which is consistent with the Intergovernmental Panel on Climate Change’s position that all pathways limiting warming to 1.5° C require carbon removal for unavoidable emissions.\n", "Appendix A", "For the emissions we can’t avoid, we use high-quality offsets as an interim solution. We’re intentional about identifying avoided deforestation and removal projects that are of the highest standard and that achieve meaningful impact. We often originate our own projects working with a reputable partner, like Conservation International, or we carefully select projects from third-party certified registries. For more details about our purchases of carbon offsets, see \n", "Carbon removal projects to address nonelectricity emissions — up to 25 percent of 2015 emissions (all scopes) ", "$200M", "Apple committed up to $200 million in additional funds to expand the Restore Fund.", "FEATURE", "Advocating for strong climate policies", "The scientific community has laid out a clear rationale for mitigating the impacts of climate change by reducing emissions — and they’ve provided stark warnings for the consequences of inaction. In addition to strong actions by businesses and individuals, we need strong government policies that support a just climate transition. That’s why Apple believes that advocating for strong climate policies is a core part of our climate strategy. ", "Setting strong science-based targets", "Promote economy-wide carbon pricing programs with strong interim and long-term targets and accountability mechanisms. ", "Advocate for policies that make it easier and more cost-effective to deploy renewable energy.", "Support policies that promote energy efficiency across all sectors, including for manufactured goods.", "Invest in mature and new zero-emission technologies to cut emissions, particularly in hard-to-decarbonize sectors. ", "[We] believe that both corporate and regulatory action are necessary to prevent the worst impacts of climate change and have a strong interest in the implementation of sound public policies to reduce greenhouse gas emissions.", "Brief Amici Curiae of Apple et al., \nWest Virginia vs EPA (2022).", "Key milestones in our climate policy advocacy", "To reach our global climate goals, governments must create policies that support a just climate transition. We've been actively advocating for strong climate policies for many years.", "Resources", "It takes recycled guts to reduce our footprint", "Goals and progress", ".29", "Eliminate plastics in our packaging by 2025\n", "In 2022,20 percent of the material we shipped in our products came from recycled or renewable sources.\n", "Our approach ", "Each of our products and services is made possible by natural resources. We’re committed to sourcing, using, and recycling the materials that we rely on in a way that meets our high standards for labor, human rights, and environmental stewardship. ", "Within resources, we focus on three main areas of impact:", "Materials", "We’re working toward a world where we create our products from, and where we contribute to, circular supply chains. This starts by building products that are circular by design and made from responsibly sourced recycled and renewable materials. This work will help us end reliance on mining, which is often both carbon-intensive and detrimental to the communities and ecosystems where it takes place.", "How we pursue circularity for our products", "Sourcing and efficiency", "Our progress on materials continued in 2022 as we’ve moved closer to creating a circular supply chain for several materials. With tin, we first proved in 2017 that we could use 100 percent recycled tin for the solder on the main logic board (where the majority of tin is found) of iPhone 6s and in 2022, we’re now using 100 percent recycled tin on many flexible printed circuit boards used across almost all newly launched products. This resulted in the total shipped recycled tin increasing to 38 percent across all product lines in 2022 — up from 30 percent in 2021. We took a similar approach with gold. Across all products, we expanded our use of certified recycled gold — from the gold plating on the main logic board on iPhone to other product main logic boards and flexible printed circuit boards — increasing certified recycled gold content to approximately 4 percent across all products that shipped in 2022 — up from just 1 percent in 2021.\n", " white paper.\n", "Maintaining high standards for materials is an essential element of this work. Our recycled and renewable material specifications follow standards established by the international community.\n", "This diligence carries over to sourcing. We obtain our resources responsibly, regardless of whether we’re using primary or recycled materials. This approach is a necessary complement to our environmental efforts — and it draws from the same reliance on international standards. Our \n", "apple.com/supplier-responsibility", "Apple is committed to setting the highest standards for responsible sourcing of the materials used in our products. For more information, read our \n“People and Environment \nin Our Supply Chain” progress report and our “Conflict Minerals Report” at \n", "FEATURE", "Our transition to certified recycled materials by product line", "In 2022, the average recycled content shipped in Apple products increased to 20 percent. We’ve approached the work material by material, component by component, starting by introducing recycled content in one product and then expanding across Apple’s product lines. ", "We're using more recycled materials than ever", "All products launched in the calendar year include certified recycled content\nSome products launched in the calendar year include certified recycled content\nNo products launched in the calendar year include certified recycled content\nRecycled content not applicable*", "* Material is considered “not applicable” if it’s found only in small quantities dispersed across modules.", "FEATURE", "Progress across our priority materials", "37", "We’re making progress toward our goal of sourcing only recycled or renewable materials in our products: in 2022, 20 percent of the material we shipped in products came from recycled or renewable sources.\n", "We’re also accelerating our ambition: We recently announced that by 2025, we plan to use 100 percent recycled cobalt in all Apple-designed batteries;\n", "feature on circular economy policy", "Transboundary movement regulations — created to establish critically important community and environmental protections — can have the unintended consequence of inhibiting the ability to recover and move materials to best-in-class recyclers or refiners for use in new products. Read about our support of policies in our \n", "We’re continuing to scale our new, 100 percent recycled aluminum alloy — which incorporates recycled content without compromising performance — across all products. Overall, in 2022, 67 percent of the aluminum we shipped came from recycled sources — up from 59 percent in 2021.\n", "43", "In 2022, 25 percent of the cobalt shipped in our products — nearly double the amount shipped in 2021 — came from certified recycled sources on a mass-balance basis, including both postindustrial scrap and post consumer scrap from end-of-life batteries. The cobalt from iPhone batteries disassembled by Daisy is being returned to the market, making the material available to others. And in 2023, Apple committed to using 100 percent recycled cobalt in all Apple-designed batteries by 2025.\n", "In 2021, iPhone 13 models were the first Apple devices to contain 100 percent certified recycled gold, used in the plating of the main logic board and wire of the front and rear cameras. In 2022, we expanded our use to the wire of every camera of iPhone 14 and to the plating of the printed circuit boards of all newly released Apple Watch models, to iPad Pro 11-inch (4th generation), and to AirPods Pro (2nd generation), increasing our use of recycled gold to about 4 percent in 2022 across all product lines — up from 1 percent in 2021. Because primary and secondary sources of gold are often commingled, to certify 100 percent recycled sources required pioneering industry-leading levels of traceability: we identified suppliers who were able to source and segregate recycled gold sources while meeting our due diligence requirements; then we elevated these suppliers as preferred vendors. This level of traceability helped us to build out a supply chain of exclusively certified recycled content. And in 2023, we committed to using 100 percent recycled gold plating in all Apple-designed rigid and flexible printed circuit boards by 2025.\n", "45", "We’re shifting toward recycled materials recovered from batteries as they become more viable and economical. We’ve worked to identify sources of recycled content and test the performance of the recycled material to see if it meets our requirements — both at the material level and in its application in batteries. This rigorous evaluation is key to maintaining our products’ performance as we transition to recycled content over the long term. In January 2023, Apple began using recycled lithium for the first time in some of our batteries for some products, and we’re in the process of getting this material third-party certified.\n", "feature", "For information about our progress on paper, see our \n", "46", "More than 73 percent of the total rare earth elements that Apple shipped in products in 2022 came from certified recycled sources, a significant increase from 45 percent used in 2021. To reach this progress, we’ve focused on rare earth elements used in magnet manufacturing — praseodymium, neodymium, terbium, and dysprosium — and worked with our supply chain to build circular supply paths for the rare earth elements. And we’re featuring greater percentages of recycled rare earth element content across our latest devices: 100 percent in iPhone 14 and Apple Watch Series 8, 99 percent in iPhone 14 Pro Max and Apple Watch Ultra, and 98 percent in MacBook Air with M2. We’re also committed to using 100 percent recycled rare earth elements in all magnets across all products by 2025.\n", "47", "With tin, we began our efforts to use recycled material on the main logic board for iPhone 6s in 2017, and last year we expanded to many flexible printed circuit boards across many products. This resulted in our recycled tin use increasing to 38 percent on average across all product lines in 2022 — up from 30 percent in 2021. In 2023, we committed to using 100 percent recycled tin soldering in all Apple-designed rigid and flexible printed circuit boards by 2025.\n", "FEATURE", "Reducing plastic and waste through packaging innovation", "48", "We’re closing in on our goal to eliminate plastics from our packaging by 2025.\n", "49", "Improving the recyclability of our packaging helps reduce our overall environmental footprint. In 2022, we released a number of products with over 95 percent fiber-based packaging, including iPhone 14 Pro, MacBook Air with M2, and iPad Air (5th generation).\n", "To eliminate the need for labels on the latest iPhone models — iPhone 14 and iPhone 14 Pro — we introduced digital printing directly on the back of boxes.\n", "52", "We’re also working to eliminate plastic lamination from our packaging. In 2022, iPad Air (5th generation), iPad Pro, and Apple Watch Series 8 replaced the polypropylene plastic lamination used on boxes and packaging components with an overprint varnish. This varnish, which we developed with rigorous qualification over three years, makes packaging more recyclable while retaining the design and feel that our customers expect when first opening their product. It’s also more efficient; the overprint varnish process requires a single step rather than the multiple steps needed previously. In 2022, this helped us avoid over 1100 metric tons of plastic and over 2400 metric tons of CO2e.\n", "53", "We’re also working to improve the recyclability of our packaging. Apple’s packaging design guidelines factor in packaging recyclability, requiring the use of fiber-based materials that can break back down to pulp as part of mixed-paper recycling streams, alongside materials like cereal boxes.\n", "54", "As we eliminate plastic in our packaging, we continue to make sure that the wood fiber comes from responsible sources. Since 2017, all the wood fiber we use for our packaging comes from either recycled sources or responsibly managed forests. Through partnerships with  The Conservation Fund and World Wildlife Fund, we’ve protected and improved forest management practices on more than one million acres of working forests in the U.S. and China. In 2022, these forests generated enough responsibly sourced fiber to balance all the virgin fiber in our packaging, while contributing to the global supply of responsibly sourced fiber.\n", "Product longevity ", "Products that are designed to last hold their value longer. iPhone, for example, has the slowest depreciation rate among the six leading smartphone manufacturers. And compared with flagship Android devices, iPhone holds an average of 30 percent more value over a four-year buy-back period.\n", "57", "During product development, we test numerous units of a product, relying on the results to inform each successive round of design. In 2022, Apple introduced Apple Watch Ultra, with a design developed for the highest level of durability to support the needs of our most adventurous and explorative customers. Apple Watch Ultra was designed for demanding conditions that required a series of new environmental and impact tests to maintain the device’s high level of reliability. Tests that our engineering team developed included a random impact test to simulate bike falls, a gravel impact test to evaluate durability in rugged stone terrain, and additional environmental tests to support compliance with MIL-STD-810H — a standard used for military equipment that‘s also popular among rugged device manufacturers.\n", "We continue to make progress designing more durable products and offering customers more repair options. At the same time, we’re working to make repairs more accessible and affordable. iPhone, for example, has even more repairable modules than before, in addition to enhanced durability features and water resistance. iPhone 14 and iPhone 14 Plus introduced an updated internal design that improved the repairability of the back glass and ease of access to internal components, making fixes easier. In the new internal design, the aluminum housing and back glass are no longer one enclosure, so repairs to the back glass don’t require replacing the housing. The 13-inch MacBook Air with Retina display (2018) and later models also allow for battery replacement with a stretch-release adhesive, facilitating component access. And iPad mini (6th generation) and iPad Air (5th generation) now support the same unit battery replacement in select locations. We’ve also expanded availability of repair parts in countries around the world to support vintage products for up to seven years. For example, a program for Mac notebooks makes battery repair available for up to 10 years after the product was last distributed. For more information, refer to the \n", "Product end of life", "Apple Recycling Programs web page", "We’re also continuing our partnership with Atea — a leading provider of IT infrastructure solutions in the Nordic and Baltic region — to collect end-of-life iPhone devices for recycling with our Daisy robot in the Netherlands. We encourage more of our customers around the world to engage with Apple to return end-of-life devices to us so that materials are returned to the circular economy. To learn more about our recycling programs, visit the \n", "Daisy, our disassembly robot, is capable of quickly and skillfully taking apart 23 models of iPhone — including various models between iPhone 5 and iPhone 12 — into discrete components. This vital step helps improve material recovery and recycling and yields clear results. From just one metric ton of iPhone main logic boards, flexes, and camera modules recovered by Daisy, our recycling partner is capable of recovering the same amount of gold and copper as more than 2000 metric tons of mined rock.\n", "white paper", "Learn more about Apple’s research with Carnegie Mellon University in our \n", "Feature", "Our position on circular economy policy", "The responsible use of natural resources is a critical part of Apple’s environmental objectives. Extracting the materials that make up our products comes with significant environmental costs. We work to minimize these by using materials efficiently so that we can one day build all our products out of recycled or renewable materials. This circularity ambition is an integral part of our strategy to meet our goal of being fully carbon neutral in 2030, including across the lifetime use of our products. ", "60", "Over the last year, Apple has reached new milestones in our products and our efforts to demonstrate what’s possible in circularity. We’re aiming for even greater use of recycled content in our products. Our commitments include using 100 percent recycled cobalt — a critical mineral — in Apple-designed batteries and using 100 percent recycled rare earth elements in all magnets, both by 2025.\n", "Policies should seek to improve strict labor, human rights, and environmental standards throughout recycled and primary materials supply chains.", "Circularity should be a priority for policies that aim to address sources of supply over new ways or locations for resource extraction. Recycling electronics will help unlock the valuable materials in those devices for reuse, reducing reliance on newly mined resources.", "Policies should strive to maximize product longevity while minimizing environmental impact, by enabling the optimal balance between designing for reliability and ease of repair.", "Ecodesign policies are most effective in delivering environmental benefits when they’re product-specific and globally aligned.", "Support the development of efficient collection programs that engage customers, protect environmental and human health, and capture high volumes of electronics for reuse, repair, refurbishment, and recycling.", "Waste regulations should be consistent and harmonized across geographies, enabling efficient, commercially viable movement of materials. Such policies can drive maximum materials recovery, prevent downcycling, and help enable parity with newly mined resources while maintaining critical environmental and social protections.", "Incentivize the inclusion of recycled content in products by supporting the generation of increased, high-quality material supply, including improving waste collection and recycling infrastructure, the development of global waste treatment standards, and recycled content quality standards.", "Support the development of advanced electronics recycling facilities that can recover more types of resources, including materials that are difficult to recover or of lower value.", "Apple is working to realize a circular economy through policy engagement and advocacy.", "Water", "Water is among the planet’s most precious resources. We consider the full life cycle of water as we bring our products and services to life. And we know that to protect this resource, we must go beyond our corporate footprint, across our supply chain and into the communities and watersheds where we operate.", "Our water strategy", "61", "This strategy is informed by geographically specific insights. Resources like the World Resources Institute (WRI) Aqueduct Water Risk Atlas provide detailed insights on local watershed health, such as baseline water stress. Understanding that 37 percent of our corporate and supply chain water use is located in areas of high or extreme basin stress helps inform the prioritization of our efforts.\n", "Low-water design", "62", "In our corporate operations, we discharge the majority of our wastewater to the sanitary sewer. Up to 44 percent of the water that we use at our corporate locations is discharged back into the local water system rather than consumed.\n", "63", "One example is our new Capstone campus in Austin, Texas, where we aim to achieve net-zero water use. To accomplish this, the campus will rely on an onsite wastewater reuse system, as well as condensate recovery and stormwater capture, limiting potable water use to potable purposes only. This effort will avoid 60 million gallons of freshwater use, relying instead on nonpotable water for cooling and toilet flushing.\n", "Water use at corporate facilities", "We track our corporate water use for our data centers, retail stores, distribution centers, and corporate offices. ", "Site efficiency and conservation", "64", "Last year, alternative water sources accounted for about 10 percent of our total corporate water usage — primarily from municipal recycled water sources. At Apple locations in Texas, North Carolina, Ireland, Taiwan, and Japan, we used rainwater capture systems to source 3 million gallons of water; from our newly installed condensate recovery systems in Santa Clara Valley, Austin, and North Carolina, we captured 1.5 million gallons of condensate in 2022. Through our low-water design and site efficiency and conservation efforts, we saved 152 million gallons of freshwater in 2022 from projects implemented since 2017.\n", "65", "At our data centers, we’ve upgraded and replaced servers to reduce our cooling water usage by 60 million gallons annually. We’ve also piloted a resin water treatment system that resulted in a 30 percent reduction in makeup water use and up to 60 percent reduction in discharge.\n", "66", "Our supply chain accounts for 99 percent of our total water footprint, based on our detailed water inventory. That’s why we partner closely with our suppliers through our Clean Water Program. Since the program’s launch in 2013, more than 234 participating supplier sites increased their average reuse rate to 42 percent and saved our suppliers 13 billion gallons of freshwater in 2022, for a total of over 63 billion gallons of water savings.\n", "67", "We’re also engaged with the Uptime Catalyst Facility in India, one of our key corporate locations with water, sanitation, and hygiene (WASH) challenges, to introduce an innovative performance-based program that allows clean, cold water to be more widely distributed and maintained. This will generate a volumetric water benefit annually, equivalent to our direct operations freshwater withdrawal in India.\n", "Zero waste", "All waste that gets sent to landfill comes with costs. These can be measured in the resources and emissions that go into discarded materials. And, too often, the most vulnerable communities around the world carry a disproportionate burden of these costs and others associated with waste disposal. We’re working to change this by prioritizing waste-free operations at our own facilities as well as those of our manufacturing suppliers.", "68", "In 2022, recycling and composting efforts allowed us to achieve a waste diversion rate of 71 percent — up from 68 percent in 2021 — limiting landfill waste from our global operations to about 16,000 metric tons.\n", "We haven’t interrupted our efforts to make progress on waste diversion since achieving our first zero-waste certification, UL’s Zero Waste to Landfill validation, in 2015 for our campus in Cork, Ireland. In 2023, our Taiwan Technology Center became the second Apple facility to receive the UL Solutions Zero Waste to Landfill validation.\n", "71", "We make available to all facilities participating in the program resources and guidance on how to reduce waste and then reuse, recycle, or compost the waste they do create. Suppliers at these locations can also access tools to improve waste management and, in some cases, onsite support. The program is making an impact: In 2022, suppliers redirected 523,000 metric tons of waste from landfills (up from 491,000 metric tons the previous year), bringing the total to 2.5 million metric tons since the program’s inception — the equivalent of eliminating 3.1 million square meters of landfill space. Throughout 2022, 100 percent of established final assembly sites — including for iPhone, iPad, Mac, Apple Watch, AirPods, HomePod, Apple TV, and Beats — maintained zero-waste-to-landfill operations.\n", "72", "One example of this is a tool developed by Apple and UL Solutions, our partner that validates zero-waste efforts. The tool provides the first-ever supply chain zero-waste management system assurance program, which allows for third-party zero-waste verification at a systems level rather than at a site level. The assurance procedure has allowed us to accelerate the verification process significantly and establishes a new model that companies across industries can employ to verify zero-waste programs at scale. This streamlined approach has brought even more suppliers into our program, with more than 150 validated in 2022 — a 50 percent increase from the previous year.\n", "2.5 million metric tons of waste were redirected from landfill by supplier facilities as part of Apple’s Zero Waste Program.", "Feature", "Green buildings ", "Each space that we build presents an opportunity to realize the type of world we’d like to live in — one that’s inclusive and accessible, reflects the value we place on creativity and innovation, and furthers our environmental goals. Whether we’re constructing a data center or corporate office or restoring a historic site to house a retail outlet, we have an opportunity to advance our vision.", "100", "100 Apple buildings worldwide are LEED or BREEAM certified for environmental performance as of 2022.", "Smarter Chemistry", "Protecting those who make, use, and recycle our products by using safer materials", "Goals and progress", "Our approach", "We carefully consider the chemicals that we use in our products and manufacturing processes. These choices directly impact the safety, recyclability, and reuse of our products, which are key to truly circular supply chains. ", "Our smarter chemistry strategy", "Mapping and engagement", "We’re committed to creating products of the highest quality — and that commitment extends to the health and environmental impacts of everything we make. This begins with a clear understanding of the chemistries of the materials that go into our products. Through collaboration, we can build a comprehensive view of the chemicals in the materials that we use and drive improvements in how we make our products.", "Mapping chemicals throughout product development leads to the use of safer materials in the manufacturing process.", "Assessment and management", "We base key decisions on our product designs, manufacturing processes, and approaches to recycling and reuse on the data that we collect on chemicals and materials. This information enables us to establish requirements for our suppliers, including those set in our Regulated Substances Specification and our Restricted Chemicals for Prolonged Skin Contact Materials specification. ", "Regulated Substances Specification", "Over 20 years ago, we first published the \n", "Restricted Chemicals for Prolonged Skin Contact Materials", "We remain focused on materials that will be in prolonged skin contact. We apply rigorous controls defined in our \n", "page 66", "We’re also looking outside our own supply chain to promote a broader transition to safer chemicals. See \n", "Innovation", "We’re continually developing our knowledge of material properties to improve the chemical safety, performance, and environmental impact of materials. These three factors drive our assessments of substances and help us pursue innovations that align with our values. ", "white paper", "Read our \n", "Substances that we keep out of our products*", "*\tApple’s Regulated Substances Specification describes Apple’s restrictions on the use of certain chemical substances in materials in Apple products, accessories, manufacturing processes, and packaging used for shipping products to Apple’s end customers. Restrictions are derived from international laws or directives, regulatory agencies, ecolabel requirements, environmental standards, and Apple policies. Apple products are free of PVC and phthalates with the exception of AC power cords in India, Thailand (for two-prong AC power cords), and South Korea, where we continue to seek government approval for our PVC and phthalates replacement. Apple products comply with the European Union Directive 2011/65/EU and its amendments, including exemptions for the use of lead. Apple is working to phase out the use of these exempted substances where technically possible.", "Engagement and Advocacy", "We hear our stakeholders loud and clear", "Our approach", "Apple is committed to achieving clear impact across our environmental goals — and beyond our footprint as a company. This is urgent work that we can’t do without others. As a member of the global community, we see it as part of our responsibility to engage thoughtfully with those addressing environmental challenges — from those in the policy community to the direct stakeholders involved in issues day-to-day and driving change. ", "Listening to voices from a range of backgrounds and experiences", "Achieving change together", "page 29", "In Asia, we spoke at a carbon neutrality conference calling for Korea’s 2030 energy plan to increase the ambition of its target for renewable energy solutions. And we serve as an executive member of the Japan Climate Leaders’ Partnership (JCLP), a business coalition focused on renewables and pushing for greater climate ambition in Japan. Partnership and collaboration with the government is essential to this. JCLP has called for an increased focus on the renewable energy transition in alignment with the Paris Agreement’s 1.5°C target and the level of carbon pricing needed to incentivize emissions reduction. Read more about how we advocate for climate policy around the world on \n", "page 47", "We’re also partnered with the Platform for Accelerating the Circular Economy (PACE), a global group of public and private decision-makers focused on the circular economy — and how to push forward the vision and best practices needed to scale advancements. Building community around these efforts is essential to achieving our environmental goals. Through its engagement at key global events, PACE provides a vital platform to pursue solutions across governments, the private sector, and civil society. Read more about our position on circular economy policy on \n", "page 27", "We’re also part of the First Movers Coalition, a global initiative harnessing the purchasing power of companies to decarbonize seven “hard to abate” industrial sectors that currently account for 30 percent of global emissions according to WEF. Through this initiative, we’ve committed to moving to sustainable aviation fuel for 5 percent of our passenger air travel footprint; to procuring at least 10 percent of annual primary aluminum at or above First Movers Coalition’s definition of “near-zero emissions primary aluminum”; and to ensuring at least 50 percent of all aluminum procured annually is sourced from secondary aluminum by 2030. We’re also supporting investments in forestry and carbon removal through external initiatives like the Forest Investor Club and our own Restore Fund (see \n", "Supporting communities around the world", "Feature", "Advancing our commitment to equity with the Impact Accelerator", "We’re working so that environmental progress and equity go hand in hand. And through the Impact Accelerator, we aim to expand access to opportunity through our investments in environmental sectors — such as renewable energy, carbon removal, recycling innovation, and smarter chemistry — which also help fight systemic barriers that impact communities disproportionately affected by environmental issues. As the Impact Accelerator enters its third year, we’re deepening our commitment to this initiative.", "Appendix", "Appendix contents", "Greenhouse gas emissions", "Appendix A", "Environmental data", "Appendix A", "Greenhouse gas emissions", "TableHeadingLeft_0", "Fiscal year", "2022", "2021", "2020", "2019", "2018", "Corporate emissions (metric tons CO2e)2", "Gross emissions", "324,100", "166,380", "334,430", "573,730", "586,170", "Scope 1", "55,200", "55,200", "47,430", "52,730", "57,440", "Natural gas, diesel, propane", "39,700", "40,070", "39,340", "40,910", "42,840", "Fleet vehicles", "12,600", "12,090", "4,270", "6,950", "11,110", "Other emissions3", "2,900", "3,040", "3,830", "4,870", "3,490", "Scope 2 (market-based)4", "3,000", "2,780", "0", "0", "8,730", "Electricity", "0", "0", "0", "0", "8,730", "Steam, heating, and cooling5", "3,000", "2,780", "0", "0", "0", "Scope 3 ", "265,800", "108,400", "287,000", "521,000", "520,000", "Business travel", "113,500", "22,850", "153,000", "326,000", "337,000", "Employee commute6", "134,200", "85,570", "134,000", "195,000", "183,000", "Upstream fuel", "10,600", "0", "0", "0", "0", "Work from home (market-based)", "7,500", "0", "0", "0", "0", "Transmission and distribution loss (market-based)", "0", "N/A", "N/A", "N/A", "N/A", "Third-party cloud (market-based)", "0", "0", "0", "0", "0", "TableTextLeft-95144b44_89", "Carbon removals", "Corporate carbon offsets7", "–324,100", "–167,0008", "–70,0009", "0", "0", "Product life cycle emissions (metric tons CO2e)10", "Gross emissions (Scope 3)", "20,280,000", "23,020,000", "22,260,000", "24,460,000", "24,550,000", "Manufacturing (purchased goods and services)", "13,400,000", "16,200,000", "16,100,000", "18,900,000", "18,500,000", "Product transportation (upstream and downstream)", "1,900,000", "1,750,000", "1,800,000", "1,400,000", "1,300,000", "Product use (use of sold products)", "4,900,000", "4,990,000", "4,300,000", "4,100,000", "4,700,000", "End-of-life processing", "80,000", "80,000", "60,000", "60,000", "50,000", "TableTextLeft-95144b44_126", "Carbon removals", "Product carbon offsets", "0", "–500,00011", "0", "0", "0", "Total gross scope 3 emissions (corporate and product) \n(metric tons CO2e)", "20,550,000", "23,128,400", "22,547,000", "24,980,000", "25,070,000", "Total gross carbon footprint (without offsets) \n(metric tons CO2e)12", "20,600,000", "23,200,000", "22,600,000", "25,100,000", "25,200,000", "Total net carbon footprint (after applying offsets) \n(metric tons CO2e)12 ", "20,300,000", "22,530,000", "22,530,000", "25,100,000", "25,200,000", "Notes: ", "Environmental Progress Reports", "For data on years prior to 2018, please reference past \n", "Totals might not add up due to rounding. ", "Chyulu Hills project", "8 \tWe retired 167,000 metric tons of carbon credits from the \n", "9 \tWe retired 70,000 metrics tons of carbon credits — 53,000 from the \n", "11 \tFor fiscal year 2021, we retired credits from the \n", "Appendix A", "Carbon offsets", "We retired the following carbon offsets toward our corporate emissions footprint for 2022.", "Project name", "Project description", "Vintage", "Volume retired", "Registry link", "Alto Mayo", "The Alto Mayo Protected Forest (AMPF) covers approximately 182,000 hectares of land in the Peruvian Amazon of extremely high value for biodiversity conservation and watershed protection. The threats to the area have increased in the last decade with the development of regional infrastructure projects and the rising price of coffee — the main crop grown in this area — leading to increasing deforestation and the subsequent loss of ecosystem services that this area provides. In response, Conservation International and its allies in the region designed the Alto Mayo Conservation Initiative (AMCI) to promote the sustainable management of the AMPF and its ecosystem services for the benefit of the local populations and the global climate. With the financial support of carbon financing, these actions are facilitating the conservation of large expanses of forest with associated climate change mitigation benefits while also creating opportunities for the sustainable development of local communities.", "2016–2018", "9,100", "Link_136", "registry.verra.org/app/projectDetail/VCS/944", "Chyulu Hills", "The Chyulu Hills REDD+ Project (CHRP) is a multi-partner initiative designed to promote climate change mitigation and adaptation, restore biodiversity, and create alternative livelihoods under the UN scheme of Reducing Emissions from Deforestation and forest Degradation (REDD+). It’s located in the Tsavo-Amboseli ecosystem in southeastern Kenya and stretches over an area of over 410,000 hectares. Its main geographic feature is the volcanic Chyulu Hills mountain range, from which the project derives its name. This project presents a broad ecosystem approach, including REDD+, to provide long-term sustainable financing and management to maintain the ecological integrity of an iconic African landscape. The project will help protect a very high-value wildlife and biodiversity area while supporting the development needs of Indigenous and other local communities.", "2017", "315,000", "Link_137", "registry.verra.org/app/projectDetail/VCS/1408", "Appendix A", "Carbon footprint by product", "The following tables list the carbon footprints (in kilograms) of Apple products sold as of March 9, 2022, along with select configurations.*", "TableHeadingLeft_16", "Storage configurations", "iPhone", "Unit", "64GB", "128GB", "256GB ", "512GB", "1TB", "iPhone 14", "kg", "61", "67", "83", "iPhone 14 Plus", "kg", "68", "75", "91", "iPhone 14 Pro", "kg", "65", "71", "84", "116", "iPhone 14 Pro Max", "kg", "73", "80", "93", "124", "iPhone 13 mini", "kg", "61", "69", "81", "iPhone 13", "kg", "64", "71", "83", "iPhone 12", "kg", "70", "75", "85", "iPhone SE (3rd generation)", "kg", "46", "50", "58", "TableHeadingLeft_24", "Storage configurations", "iPad", "Unit", "64GB", "128GB", "256GB ", "512GB", "1TB", "2TB", "iPad Pro 12.9-inch (6th generation) Wi-Fi + Cellular", "kg", "135", "142", "156", "183", "284", "iPad Pro 11-inch (4th generation) Wi-Fi + Cellular", "kg", "107", "121", "121", "148", "249", "iPad Air (5th generation) Wi-Fi + Cellular", "kg", "80", "84", "92", "iPad (10th generation) Wi-Fi + Cellular", "kg", "72", "82", "iPad (9th generation) Wi-Fi + Cellular", "kg", "75", "84", "iPad mini (6th generation) Wi-Fi + Cellular", "kg", "68", "71", "77", "90", "TableHeadingLeft_33", "Select product configurations", "Apple Watch", "Unit", "Aluminum case with Sport Loop", "Aluminum case with Sport Band", "Stainless steel case with Sport Band", "Titanium case with Ocean Band", "Titanium case with Trail Loop", "Apple Watch Ultra, 49mm", "kg", "56", "56", "Apple Watch Series 8, 45mm", "kg", "33", "35", "Apple Watch SE (2nd generation), 44mm", "kg", "28", "31", "TableHeadingLeft_41", "Storage configurations", "Notebooks", "Unit", "256GB ", "512GB ", "1TB ", "16-inch MacBook Pro (2023), Apple M2 Pro chip with 12-core CPU and 19-core GPU", "kg", "300", "327", "16-inch MacBook Pro (2023), Apple M2 Max chip with 12-core CPU and 38-core GPU", "kg", "356", "14-inch MacBook Pro (2023), Apple M2 Pro chip \nwith 10-core CPU and 16-core GPU", "kg", "243", "14-inch MacBook Pro (2023), Apple M2 Pro chip with 12-core CPU and 19-core GPU", "kg", "272", "14-inch MacBook Pro (2023), Apple M2 Max chip with 12-core CPU and 30-core GPU", "kg", "301", "13-inch MacBook Pro (2022), Apple M2 chip", "kg", "167", "182", "13-inch MacBook Air (2022), Apple M2 chip", "kg", "147", "171", "13-inch MacBook Air (2020), Apple M1 chip", "kg", "161", "181", "TableHeadingLeft_47", "Storage configurations", "Desktops", "Unit", "256GB ", "512GB ", "1TB ", "4TB ", "24-inch iMac with 4.5K Retina display, Apple M1 chip with 8-core CPU and 7-core GPU", "kg", "481", "24-inch iMac with 4.5K Retina display, Apple M1 chip with 8-core CPU and 8-core GPU", "kg", "486", "511", "Mac mini (2023), Apple M2 chip", "kg", "112", "126", "Mac mini (2023), Apple M2 Pro chip", "kg", "150", "Mac Studio (2022), Apple M1 Max with 32GB memory ", "kg", "262", "Mac Studio (2022), Apple M1 Ultra with 64GB memory ", "kg", "375", "Mac Pro (2019), 3.5GHz (8-core) processor, Radeon Pro 580X, 32GB memory", "kg", "2,765", "Mac Pro (2019), 2.5GHz (28-core) processor, dual Radeon Pro Vega II Duo with Infinity Fabric Link, 1.5TB memory, Afterburner card", "kg", "6,994", "Displays", "Unit", "Studio Display (2022)", "kg", "544", "Pro Display XDR with Pro Stand", "kg", "974", "HomePod", "Unit", "HomePod (2nd generation)", "kg", "92", "HomePod mini", "kg", "42", "TableHeadingLeft_58", "Storage configurations", "Apple TV", "Unit", "64GB", "128GB", "Apple TV 4K, Wi-Fi", "kg", "43", "Apple TV 4K, Wi-Fi + Ethernet", "kg", "46", "TableHeadingLeft_63", "Storage configurations", "iPod touch", "Unit", "32GB", "128GB", "256GB ", "iPod touch (7th generation)", "kg", "32", "38", "48", "Notes: ", "LI_6", "LBody_16", "Dashes indicate that the configuration does not exist.", "Product Environmental Reports", "* \tProduct carbon footprint data for Apple products are published in our \n", "Appendix A", "Apple’s life cycle assessment methodology", "To model the manufacturing phase, we use part-by-part measurements of the entire product along with data on part production. In some cases where part-by-part data is not readily available, we also use design-level data for size and weight detail. The measurements help us accurately determine the size and weight of the components and materials in the product, while data on manufacturing processes and yield loss during production allows us to account for the impact of manufacturing. The LCA includes accessories and packaging, as well as decreased emissions through Apple’s Supplier Clean Energy Program. When calculating Apple’s comprehensive carbon footprint, we also include units that are repaired and replaced through AppleCare.", "To model customer use, we measure the power consumed by a product while it is running in a simulated scenario. Daily usage patterns are specific to each product and are a mixture of actual and modeled customer use data. For the purposes of our assessment, years of use, which are based on first owners, are modeled to be four years for macOS and tvOS devices and three years for iOS, iPadOS, and watchOS devices. Most Apple products last longer and are often passed along, resold, or returned to Apple by the first owner for others to use. More information on our product energy use is provided in our Product Environmental Reports.", "To model transportation, we use data collected on shipments of single products and multipack units by land, sea, and air. We account for transporting materials between manufacturing sites; transporting products from manufacturing sites to regional distribution hubs; transporting products from regional distribution hubs to individual customers; and transporting products from final customers to recycling facilities.", "To model end of life, we use material composition data on our products and estimate the ratio of products that are sent to recycling or disposal. For products sent to recycling, we capture the initial processing by the recycler to prepare the product for recovery of electronic, metal, plastic, and glass material streams. Subsequent downstream recycling processes are not included, as these are considered stages of production and not end-of-life processing. For products sent to disposal, we capture the emissions associated with landfilling or incineration of each type of material.", "After we collect data about manufacturing, use, transportation, and end of life, we combine it with detailed greenhouse gas emission data. This emission data is based on a combination of Apple-specific and industry-average data sets for material production, manufacturing processes, electricity generation, and transportation. Renewable energy used in the supply chain, initiated by suppliers independently or through the Apple Supplier Clean Energy Program, is also accounted for within the LCA model. Combining product-specific information with emission data in our LCA allows us to compile detailed results for greenhouse gas emissions as they relate to each product. The data and modeling approaches are checked for quality and accuracy by the Fraunhofer Institute in Germany.", "Appendix A", "Energy", "TableHeadingLeft_69", "Fiscal year", "Unit", "2022", "2021", "2020", "2019", "2018", "Corporate facilities energy ", "Electricity", "Total", "MWh", "3,199,000", "2,854,000", "2,580,000", "2,427,000", "2,182,000", "U.S.", "MWh", "2,614,000", "2,377,000", "2,192,000", "2,075,000", "1,830,000", "International", "MWh", "585,000", "477,000", "389,000", "351,000", "351,000", "TableTextLeft-95144b44_314", "Fuel", "Total", "MWh", "334,250", "467,280", "439,170", "462,680", "494,460", "Natural gas", "MWh", "188,630", "203,010", "202,360", "202,340", "204,970", "Biogas", "MWh", "76,280", "208,620", "210,820", "217,140", "226,660", "Propane liquid", "MWh", "1,830", "40", "140", "280", "280", "Gasoline", "MWh", "38,790", "34,880", "14,910", "23,950", "37,740", "Diesel (other)", "MWh", "15,610", "9,780", "9,610", "16,450", "20,270", "Diesel (mobile combustion)", "MWh", "13,120", "10,950", "1,330", "2,520", "4,540", "TableTextLeft-95144b44_364", "Other", "Steam, heating, and cooling1", "MWh", "19,800", "22,480", "0", "0", "0", "Energy \nefficiency2", "Corporate facilities", "Electricity savings", "MWh/year", "317,120", "260,390", "244,690", "208,640", "113,200", "Fuel savings", "MMBtu/year", "315,870", "299,780", "297,090", "277,120", "254,140", "TableTextLeft-95144b44_387", "Supplier facilities3", "Electricity savings", "MWh/year", "1,620,425,230", "1,418,825,350", "1,101,440", "943,890", "798,930", "Fuel savings", "MMBtu/year", "2,038,930", "1,047,440", "752,680", "25,120", "25,120", "Renewable \nelectricity", "Corporate facilities", "Renewable electricity used", "MWh", "3,199,000", "2,854,000", "2,580,000", "2,430,000", "2,170,000", "Renewable electricity percentage4", "% of total energy", "100", "100", "100", "100", "99", "Scope 2 emissions avoided", "metric tons CO2e", "1,201,000", "1,064,000", "948,000", "899,000", "690,000", "TableTextLeft-95144b44_423", "Supply chain5", "Renewable electricity capacity (operational)", "GW", "13.7", "10.3", "4.5", "2.7", "1.9", "Renewable electricity capacity (committed)", "GW", "6.8", "15.9", "7.9", "5.1", "3.3", "Renewable electricity used", "MWh", "23,700,000", "18,100,000", "11,400,000", "5,700,000", "4,100,000", "Appendix A", "Resources", "TableHeadingLeft_79", "Fiscal year", "Unit", "2022", "2021", "2020", "2019", "2018", "Water", "Corporate facilities", "Total", "million gallons", "1,527", "1,407", "1,287", "1,291", "1,258", "Freshwater1", "million gallons", "1,380", "1,259", "1,168", "1,178", "1,190", "Recycled water2", "million gallons", "142", "141", "113", "106", "63", "Other alternative sources3", "million gallons", "5", "7", "5", "7", "4", "TableTextLeft-95144b44_474", "Supply chain", "Freshwater saved", "million gallons", "13,000", "12,300", "10,800", "9,300", "7,600", "Waste", "Corporate facilities4", "Landfill diversion rate", "71", "68", "70", "66", "67", "Landfilled (municipal solid waste)", "pounds", "33,260,990", "33,202,200", "25,826,550", "38,317,120", "32,372,890", "Recycled", "pounds", "78,618,250", "73,489,220", "63,812,300", "72,338,130", "66,380,630", "Composted", "pounds", "8,726,170", "4,844,960", "6,302,410", "10,882,120", "10,397,430", "Hazardous waste", "pounds", "2,780,610", "3,525,840", "4,053,770", "6,096,600", "6,277,800", "Waste to energy", "pounds", "1,197,570", "657,890", "786,250", "1,129,080", "1,105,140", "TableTextLeft-95144b44_524", "Supply chain", "Waste diverted from landfill", "metric tons", "523,000", "491,000", "400,000", "322,000", "375,000", "Product packaging \nfootprint", "Packaging", "Total", "metric tons", "276,100", "257,000", "226,000", "189,000", "187,000", "Recycled fiber", "% of total", "66", "63", "60", "59", "58", "Responsibly sourced virgin fiber5", "% of total", "30", "33", "35", "33", "32", "Plastic", "% of total", "4", "4", "6", "8", "10", "Appendix A", "Normalizing factors*", "TableHeadingLeft_89", "Fiscal year", "2022", "2021", "2020", "2019", "2018", "Net sales (in millions, US$)", "394,328", "365,817", "274,515", "260,174", "265,595", "Number of full-time equivalent employees", "164,000", "154,000", "147,000", "137,000", "132,000", "* \tAs reported in Apple’s Form 10-K Annual Report filed with the SEC.", "Appendix B", "Corporate facilities energy supplement", "Corporate facilities energy supplement", "Use of renewable energy at our facilities has been a central component of our emissions reduction strategy since 2011. We’ve learned a lot about how best to secure renewable energy, which has helped us educate suppliers and expand our renewable energy efforts into our supply chain. This appendix summarizes the types of renewable energy solutions we’ve deployed, and it details how we implement renewable energy at our data centers — our largest energy loads.", "Location", "Renewable energy technology", "Size (MW)", "Australia", "PV", "0.5", "Brazil", "Wind", "0.5", "China mainland", "PV", "130", "Colombia", "PV", "0.2", "Denmark", "PV", "42", "Denmark", "Wind", "17", "France", "PV", "lt;0.1", "India", "PV", "2", "Israel", "PV", "5", "Japan", "PV", "12", "Mexico", "Wind", "0.8", "Philippines", "PV", "0.1", "Singapore", "PV", "35", "South Africa", "PV", "0.2", "Taiwan", "PV", "1", "Turkey", "PV", "4", "Arizona, U.S.", "PV", "55", "California, U.S.", "Biogas fuel cell", "4", "California, U.S.", "PV", "146", "Illinois, U.S.", "Wind", "112", "North Carolina, U.S.", "Biogas fuel cell", "10", "North Carolina, U.S.", "PV", "164", "Nevada, U.S.", "PV", "320", "Oregon, U.S.", "Microhydro", "3", "Oregon, U.S.", "PV", "125", "Oregon, U.S.", "Wind", "200", "Texas, U.S.", "PV", "1", "Texas, U.S.", "Wind", "25", "Virginia, U.S.", "PV", "133.6", "Total", "1,549", "Note: Data current as of February 2023 (operational).", "Location", "Scope 1", "Scope 2", "Total gas\n(MMBtu)", "Renewable biogas \n(MMBtu)", "Scope 1 emissions (metric tons CO2e)", "Electricity\n(million kWh)", "Renewable electricity (million kWh)", "Scope 2 emissions (market-based, metric tons CO2e)1", "Corporate", "826,063", "202,978", "31,030", "856", "856", "0", "Cupertino, CA", "672,244", "202,978", "22,849", "428", "428", "0", "Elk Grove, CA", "13,782", "732", "13", "13", "0", "Austin, TX", "20,948", "1,113", "64", "64", "0", "Other U.S.", "67,362", "3,585", "57", "57", "0", "Cork, Ireland", "20,151", "1,070", "16", "16", "0", "Singapore", "142", "8", "15", "15", "0", "China", "686", "37", "33", "33", "0", "Other international", "30,748", "1,636", "230", "230", "0", "Data centers", "19,109", "17,961", "62", "2,138", "2,138", "0", "Maiden, NC", "17,961", "17,961", "1", "432", "432", "0", "Mesa, AZ", "312", "17", "379", "379", "0", "Newark, CA", "20", "20", "0", "Prineville, OR", "836", "0", "44", "275", "275", "0", "Reno, NV", "419", "419", "0", "Viborg, Denmark", "N/A", "N/A", "N/A", "27", "27", "0", "Colocation facilities (U.S.)", "N/A", "N/A", "N/A", "371", "371", "0", "Colocation facilities (international)", "N/A", "N/A", "N/A", "117", "117", "0", "China", "N/A", "N/A", "N/A", "98", "98", "0", "Retail stores", "58,720", "0", "3,119", "205", "205", "0", "Domestic (U.S.)", "36,005", "1,912", "97", "97", "0", "International", "22,716", "1,207", "108", "108", "0", "Total", "903,892", "220,939", "34,211", "3,199", "3,199", "0", "Bodytext_44", "Maiden, North Carolina: Grid mix versus Apple-sourced renewable energy \nElectricity use in 2022: 432 million kWh", "Default grid mix (North Carolina)", "Apple actual renewable energy allocation", "Coal", "16", "Apple’s solar projects", "75", "Gas", "37", "Apple’s biogas fuel cells", "3", "Nuclear", "33", "Apple’s wind projects", "21", "Hydro", "5", "Source: 2022 energy data. \nNote: Totals don’t add up to 100 percent, due to rounding.", "Renewable", "10", "Other", "lt;1", "Footnotesnoindent-e37582d3_0", "Source: eGRID 2021.", "Bodytext_45", "Prineville, Oregon: Grid mix versus Apple-sourced renewable energy\nElectricity use in 2022: 275 million kWh", "Default grid mix (Oregon)", "Apple actual renewable energy allocation", "Gas", "35", "Apple’s microhydro projects", "1", "Hydro", "45", "Apple’s solar projects", "51", "Renewable", "20", "Apple’s wind projects", "48", "Source: eGRID 2021.", "Source: 2022 energy data. ", "Bodytext_46", "Reno, Nevada: Grid mix versus Apple-sourced renewable energy \nElectricity use in 2022: 419 million kWh", "Default grid mix (Nevada)", "Apple actual renewable energy allocation", "Coal", "7", "Apple’s solar projects", "100", "Gas", "63", "(through the NV GreenEnergy Rider program)", "Hydro", "5", "Source: 2022 energy data.", "Renewable", "26", "Footnotesnoindent-e37582d3_4", "Source: eGRID 2021.\nNote: Total doesn’t add up to 100 percent due to rounding.", "Bodytext_47", "Newark, California: Grid mix versus Apple-sourced renewable energy \nElectricity use in 2022: 20 million kWh", "Default grid mix (California)", "Apple actual renewable energy allocation", "Coal", "lt;1", "Bundled solar (through Direct Access)", "100", "Gas", "49", "Source: 2022 energy data. ", "Nuclear", "8", "Hydro", "7", "Renewable", "34", "Other", "lt;1", "Footnotesnoindent-e37582d3_6", "Source: eGRID 2021.", "Bodytext_48", "Mesa, Arizona: Grid mix versus Apple-sourced renewable energy\nElectricity use in 2022: 379 million kWh", "Default grid mix (Arizona)", "Apple actual renewable energy allocation", "Coal", "13", "Apple’s solar projects", "83", "Gas", "44", "Apple’s wind projects", "17", "Nuclear", "29", "Source: 2022 energy data.", "Hydro", "6", "Renewable", "8", "Footnotesnoindent-e37582d3_8", "Source: eGRID 2021.", "Bodytext_49", "Denmark: Grid mix versus Apple-sourced renewable energy \nElectricity use in 2022: 27 million kWh", "Default grid mix (Denmark)", "Apple actual renewable energy allocation", "Coal", "13", "Apple’s wind and solar projects", "100", "Gas", "5", "Source: 2022 energy data.", "Renewable", "76", "Other", "6", "www.iea.org/data-and-statistics/data-product/electricity-information", "Source: IEA Electricity Information 2022: \n", "Bodytext_50", "China: Grid mix versus Apple-sourced renewable energy \nElectricity use in 2022: 98 million kWh", "Default grid mix (China)", "Apple actual renewable energy allocation", "Coal", "63", "Apple’s solar project", "100", "Gas", "3 ", "Source: 2022 energy data.", "Renewable", "29", "Other", "5", "www.iea.org/data-and-statistics/data-product/electricity-information", "Source: IEA Electricity Information 2022: \n", "Total energy use \n(kWh)", "Renewable energy \n(kWh)", "Default utility emissions (metric tons CO2e)15", "Apple’s emissions — including renewable energy (metric tons CO2e)16", "Percent renewable\nenergy \n(%)17", "FY2011", "42,500", "0", "10", "10", "0", "FY2012", "38,552,300", "1,471,680", "17,200", "16,500", "4", "FY2013", "79,462,900", "46,966,900", "31,800", "14,500", "59", "FY2014", "108,659,700", "88,553,400", "44,300", "11,000", "81", "FY2015", "142,615,000", "121,086,100", "60,500", "12,700", "85", "FY201618", "145,520,900", "143,083,200", "66,300", "1,600", "98", "FY2017", "289,195,800", "286,378,100", "125,600", "1,500", "99", "FY2018", "327,663,800", "326,959,700", "146,600", "400", "99.8", "FY2019", "339,047,649", "339,047,649", "146,400", "0", "100", "FY2020", "372,901,398", "372,901,398", "153,459", "0", "100", "FY2021", "384,727,076", "384,727,076", "146,780", "0", "100", "FY2022", "487,921,930", "487,921,930", "182,700", "0", "100", "Notes: ", "Dash indicates unavailable data.", "N/A = Gas use at colocation facilities is considered outside of Apple’s operational control.", "www.eia.gov/electricity/sales_revenue_price/pdf/table5_a.pdf", "2\tCarbon emissions equivalences calculated using 2021 data from the U.S. Energy Information Administration: \n", "www.eia.gov/electricity/sales_revenue_price/pdf/table5_a.pdf", "4\tCarbon emissions equivalences calculated using 2021 data from the U.S. Energy Information Administration: \n", "www.eia.gov/electricity/sales_revenue_price/pdf/table5_a.pdf", "6\tCarbon emissions equivalences calculated using 2021 data from the U.S. Energy Information Administration: \n", "www.eia.gov/electricity/sales_revenue_price/pdf/table5_a.pdf", "8\tCarbon emissions equivalences calculated using 2021 data from the U.S. Energy Information Administration: \n", "www.eia.gov/electricity/sales_revenue_price/pdf/table5_a.pdf", "11\tCarbon emissions equivalences calculated using 2021 data from the U.S. Energy Information Administration: \n", "Appendix C", "Supplier Clean Energy Program supplement", "Supplier Clean Energy Program supplement", "Note: Above total doesn’t add up to 100 percent due to rounding.", "As we continue transitioning our supply chain to clean energy, over 250 suppliers globally — including over 40 new commitments in the past year — have committed to producing Apple products with 100 percent clean electricity:", "Appendix D", "Assurance and review statements", "Appendix E", "Environment, Health and Safety Policy", "Environment, Health and Safety Policy", "apple.com/supplier-responsibility", "Communicate EHS policies and programs to Apple employees and stakeholders, and ensure suppliers operate in accordance with Apple’s Supplier Code of Conduct. Supplier Responsibility resources and Supplier Code of Conduct are available at \n", "Appendix F", "ISO 14001 certification", "Appendix F", "ISO 14001 certification", "Apple operates manufacturing facilities in Cork, Ireland. We certify 100 percent of these facilities with ISO 14001.", "Report notes", "environment-report@apple.com", "This report is published annually, typically in April, and focuses primarily on fiscal year activities. This report addresses environmental impacts and activities at Apple facilities (corporate offices, data centers, and retail stores), as well as the life cycle impacts of our products, including in the manufacturing, transportation, use, and end-of-life phases. To provide feedback on this report, please contact \n", "Appendix D", "We obtain third-party verification for some of the information in this report from Apex Companies and the Fraunhofer Institute in Germany (as denoted in \n", "Our Commitment to Human Rights", "Respect for human rights shapes how we make our products and services. Our responsibilities go beyond our stores and corporate offices: They extend to our supply chain, the communities we’re a part of, and the planet we all share. Read \n", "Racial Equity and Justice Initiative", "Apple’s \n", "People and Environment in Our Supply Chain 2023 Annual Progress Report", "Read more about our work to uphold the highest standards of labor and human rights, health and safety, and environmental stewardship across our global supply chain in our \n", "End notes", "© 2023 Apple Inc. All rights reserved. Apple, the Apple logo, Restore Fund, and Power for Impact are trademarks of Apple Inc. Beats is a trademark of Beats Electronics, LLC., registered in the U.S. and other countries and regions. iOS is a trademark or registered trademark of Cisco in the U.S. and other countries and is used under license. ENERGY STAR and the ENERGY STAR mark are registered trademarks owned by the U.S. Environmental Protection Agency. Other product and company names mentioned herein may be trademarks of their respective companies.", "7", "9", "10", "11", "12", "13", "14", "17", "18", "19", "20", "21", "22", "23", "24", "25", "1", "3", "4", "5", "6", "27", "28", "29", "30", "31", "32", "33", "34", "35", "36", "37", "38", "39", "40", "41", "42", "43", "44", "45", "46", "47", "48", "49", "50", "51", "52", "53", "54", "55", "56", "57", "5", "59", "60", "61", "62", "63", "64", "65", "66", "67", "69", "70", "71", "72", "Packaging fiber and plastic footprint* (metric tons)", "Our goal is to eliminate all plastics from our packaging by 2025.** In 2022, only 4 percent of our packaging footprint was from plastic, and 66 percent came from recycled fiber. Since 2017, 100 percent of the virgin wood fiber in our packaging has come from responsible sources.†", "Apple’s Sustainable Fiber Specification (PDF)", "†\tResponsible sourcing of fiber is defined in \n", "Contents", "Introduction", "Climate Change", "Resources", "Smarter Chemistry", "Appendix", "Cover photo: Our goal is for all Apple products to have net-zero carbon impact by 2030.", "* \tMyhre, G., D. Shindell, F.-M. Bréon, W. Collins, J. Fuglestvedt, \nJ. Huang, D. Koch, J.-F. Lamarque, D. Lee, B. Mendoza, T. Nakajima, A. Robock, G. Stephens, T. Takemura and H. Zhang, 2013: Anthropogenic and Natural Radiative Forcing. In: Climate Change 2013: The Physical Science Basis. Contribution of Working Group I to the Fifth Assessment Report of the Intergovernmental Panel on Climate Change [Stocker, T.F., D. Qin, G.-K. Plattner, M. Tignor, \nS.K. Allen, J. Boschung, A. Nauels, Y. Xia, V. Bex and P.M. Midgley (eds.)]. Cambridge University Press, Cambridge, United Kingdom and New York, NY, USA.", "*\tAsterisks denote suppliers that have newly committed to 100 percent renewable electricity (since March 2022).", "*\tAsterisks denote suppliers that have newly committed to 100 percent renewable electricity (since March 2022).", "Environmental Progress \nReport", "Behind every Apple product\nis a plan for the future", "Covering fiscal year 2022Last updated October 2023", "Lisa Jackson\nVice President, Environment, Policy amp; Social Initiatives", "2030", "2022", "2010", "20.3 million metric tons \nnet carbon emissions**", "Product footprint", "Corporate footprint", "Corporate energy efficiency: \n\n0.09 million metric \ntons avoided ", "\t\nGross emissions", "Emissions", "Offsets", "75% reduction \nin gross emissions from 2015 \n", "Baseline \nyear", "2019", "2026", "2020", "2024", "2018", "2025", "2016", "2021", "2027", "2029", "2017", "2023", "2022", "2028", "2030", "2015", "Gross emissions", "20.6", "23.2", "22.6", "29.5", "25.1", "25.2", "38.4", "27.5", "0.7", "0.3", "0.1", "Carbon offsets/removal", "38.4", "27.5", "25.2", "29.5", "Net emissions", "25.1", "22.5", "20.3", "22.5", "net-zero carbon emissions by 2030", "(million metric tons CO2e per fiscal year) ", "Carbon Removals", "Corporate Emissions", "(having already reduced scope 1 and 2 emissions by 67% since 2011*)", "Scope 3", "265,840 metric tons CO2e", "Scope 1 and 2", "58,220 metric tons CO2e", "324,100 metric tons CO2e", "carbon neutral \nfor our corporate \noperations", "High-quality carbon offset projects", "Business travel", "Data centers", "Offices", "Employee commute", "Work from home", "Retail stores", "Undertaking a comprehensive life cycle analysis for the materials and components in our products led us to prioritizing low-carbon aluminum. In 2018, Apple created an aluminum alloy made of 100 percent recycled aluminum and a reduced carbon footprint.", "MacBook Pro \n(14-inch and 16-inch)", "MacBook Air", "iPad Pro (11-inch anD 12.9-inch)", "Apple’s Reno data center, opened in 2012, takes advantage of the mild climate by cooling its servers with outside air whenever possible.", "At 200-megawatts, the Montague Wind Power Facility in Oregon is one of Apple’s largest renewable projects to date.", "Apple has invested in the California Flats energy storage project, which retains generated clean energy from intermittent renewable sources, including the adjacent 130-megawatt California Flats Solar Project (pictured).", " \tOperational", "FY16", "FY17", "FY18", "FY19", "FY20", "FY21", "FY22", "8", "12", "20", "16", "4", "Gigawatts", "Apple is investing in renewable energy worldwide — including this large-scale solar project in Brown County, Texas — to help address the electricity customers use to charge their Apple devices.", "With access to electricity in their homes through one of the South Africa projects, kids can now do homework at night and families can cook meals indoors.", "Aluminum is one of the world’s most widely used metals, and ELYSIS’ innovative direct carbon-free smelting process has the potential to reduce the climate impact of the production process.", "Through the first phase of the Restore Fund, we’re working with forestry managers to create sustainably managed forests that are optimized for both carbon and wood production, creating revenue from timber and generating high-quality carbon credits. Photo credit: Arbaro Advisors.", "2021", "2022", "2023", "2017\n\n", "2018\n\n", "2019", "2020", "2021", "2022", "_No_paragraph_style__92", "Copper", "_No_paragraph_style__93", "Zinc", "_No_paragraph_style__94", "Steel \n", "_No_paragraph_style__95", "Gold\n", "_No_paragraph_style__96", "Tungsten*\n", "_No_paragraph_style__97", "Rare earth elements", "_No_paragraph_style__98", "Aluminum\n", "_No_paragraph_style__99", "Tin\n", "_No_paragraph_style__100", "Plastic\n", "Apple Watch", "Desktop", "Notebook", "iPad", "iPhone ", "Apple Watch", "Desktop", "Notebook", "iPad", "iPhone ", "Apple Watch", "Desktop", "Notebook", "iPad", "iPhone ", "Apple Watch", "Desktop", "Notebook", "iPad", "iPhone ", "Apple Watch", "Desktop", "Notebook", "iPad", "iPhone ", "Apple Watch", "Desktop", "Notebook", "iPad", "iPhone ", "Products launched by calendar year", "We carefully developed our new overprint varnish to replace the polypropylene lamination while meeting rigorous quality standards for our packaging recyclability and aesthetic. ", " Plastic\n Responsibly sourced virgin fiber**\n Recycled fiber\t\n", "4% \nplastic \n", "21% \nplastic \n", "iPhone retains its value over time*", " \tiPhone", "100%", "Trade-in value", "0%", "1 year", "2 years", "3 years", "4 years", "*\tAccording to the “2021–2022’s Phone Depreciation Report,” published by BankMyCell, a website that tracks trade-in and sale value of technology products.", "Global repair locations", "Smarter Chemistry", "Engagement and Advocacy", "Introduction ", "Climate Change", "Resources", "Appendix", "iPhone longevity journey", "2022", "*\tiPhone 7, iPhone X, iPhone 13 and iPhone 14 models are splash, water, and dust resistant and were tested under controlled laboratory conditions. iPhone 7 and iPhone X have a rating of IP67 under IEC standard 60529 (maximum depth of 1 meter up to 30 minutes). iPhone 14 has a rating of IP68 under IEC standard 60529 (maximum depth of 6 meters up to 30 minutes). Splash, water, and dust resistance are not permanent conditions and resistance might decrease as a result of normal wear. Do not attempt to charge a wet iPhone; refer to the user guide for cleaning and drying instructions. Liquid damage not covered under warranty.", "We work with best-in-class recyclers to drive our efforts to close the loop on key materials used in our products. ", "The aluminum anodizing process is typically water-intensive. In 2019, we launched a pilot to seek to eliminate hazardous discharge and increase water efficiency from anodizing. The cascade and counterflow rinsing processes, which helped retain 75 to 85 percent of the water used during metal finishing, could save millions of gallons of freshwater annually when applied at scale.", "In 2023, our Viborg, Denmark, facility became the third to receive TRUE Platinum certification, which requires more than 90 percent of waste from a facility to be recycled, composted, or redirected for reuse. ", "In 2022, we opened Apple Brompton Road which sources 100 percent renewable electricity, like all Apple facilities.", "We evaluate materials for substances restricted in our Regulated Substances Specification — including VOCs — using equipment like this gas chromatography/mass spectrometry (GC/MS) system.", "We test all our products, and place special attention on materials that come into prolonged skin contact. In this nickel leach test, we place Apple Watch bands in jars of artificial sweat to ensure the nickel, a potential allergen, stays where it belongs — in the product.", "We’ve proactively provided our suppliers a list of cleaners and degreasers that are safe to use, and since 2018, all of our final assembly sites have used only safer alternative cleaners and degreasers.", "We can better achieve a Transformative impact within our industry and for global communities when we work alongside a diverse group of stakeholders", "supporting Global communities", "Policymakers and regulators", "NGOs amp; nonprofit \norganizations", "Scientific \ncommunity", "Peer \ncompanies", "Community \nleaders", "Standards \nbodies", "Employees", "Suppliers", "Customers", "Key Partnerships and Memberships", "Stakeholder", "Our engagement", "Aluminium Stewardship Initiative", "Supporting responsible sourcing within the aluminum value chain; recently completed an audit \nagainst their Performance Standard of environmental, social, and governance criteria. (Member)", "Ceres", "Dedicated to taking action to stabilize the climate, protect water and natural resources, and build \na just and inclusive economy. (Member of the Ceres company network)", "ChemFORWARD ", "Working to advance safer chemistry in product design and manufacturing. (Co-design partner, \nchair of Technical Advisory Group)", "China Association of Circular \nEconomy (CACE)", "Sharing our best practices in their conferences and workshops and partnering with the organization \non advocacy efforts focused on recycling and waste. (Senior member)", "Clean Electronics Production \nNetwork (CEPN)", "Working to improve chemical safety in the electronics supply chain as part of this multi-stakeholder initiative. (Member of the design team)", "Clean Energy Buyers Alliance (CEBA)", "Promoting customer-driven clean energy use. (Member, serving on the Supply Chain and International Collaboration working group)", "Japan Climate Leaders, Partnership ", "Aligning business objectives with climate goals. (Executive member)", "MIT Climate and Sustainability \nConsortium (MCSC)", "Galvanizing the business community to have an impact on broad and intersecting environmental challenges. (Industry Advisory Board Member)", "Platform for Accelerating the Circular Economy (PACE)", "Joining global leaders in the effort to transition to a circular economy. (Member of the board)", "RE100", "Showing our commitment to 100% renewable energy. (Member of the RE100 Advisory Committee)", "Responsible Business Alliance (RBA)", "Dedicated to responsible business conduct in global supply chains. (Full member, serving on the RBA Board of Directors and steering committee of the Responsible Minerals Initiative)", "World Business Council for Sustainable \nDevelopment (WBCSD)", "A community of the world’s leading sustainable businesses working toward a net-zero, nature positive, \nand more equitable future. (Member)", "The Conservation Fund works to center local organizations, like McIntosh S.E.E.D., to support land retention amongst Black landowners in the rural U.S. South. \nIn 2022, Black landowners from Georgia participated in workshops and trainings hosted by McIntosh S.E.E.D. on topics relevant to climate resiliency.", "Apple supports the Hispanic Access Foundation, which focuses on amplifying diverse Latino voices in their communities and advocating for environmental issues that directly affect their daily lives. ", "The Impact Accelerator’s goal is to ensure that Apple’s work to protect the environment also helps advance equity and expand access to opportunity for communities of color. Participants, like Bench-Tek, engage in online courses, live sessions, and mentorship throughout the three-month program, and continue their connection with other program participants through Apple’s Supplier Success community. ", "Supplier energy efficiency and clean energy achievements", "2020", "2015", "Launch of the Supplier Clean Energy Program and Supplier Energy Efficiency Program", "2018", "Launch of the China Clean Energy Fund, which enables Apple and our suppliers to invest in more than 1 gigawatt of renewable energy in China", "2022", "Apple called on its global supply chain to decarbonize by 2030", "2017", "2023", "Over 250 suppliers committed to 100 percent renewable electricity for Apple production, corresponding to over 80 percent of Apple’s direct manufacturing spend", "2019", "2% \nOnsite renewable electricity", "24% \nRenewable energy certificates", "32% \nSolar", "56% \nWind", "9% \ndirect investments", "12% \nother technology", "66% \nRenewable power purchases", "Climate Change", "Introduction", "Resources", "Resources continued", "2022", "2010", "2010", "2022", "_No_paragraph_style__170", " \tProjected gross emissions", " \tEmissions range from modeling uncertainty*", " \tGross emissions", "_No_paragraph_style__173", "Mac mini", "_No_paragraph_style__174", "iPad Mini", "_No_paragraph_style__175", "Apple Watch SERIES 8", "NormalParagraphStyle_11", "All these products contain 100% recycled aluminum enclosures", "Imagecaption_18", "Over 250 suppliers have committed to 100 percent renewable electricity for Apple production, as part of Apple’s Clean Energy Program. Holmen Iggesund in Sweden (pictured) joined the program in 2023.", "2021", "2022", "2023", "Story_10", "NormalParagraphStyle_15", "2022", "2021", "2021", "2022", "2023", "Material", "Key challenges", "Progress", "Material", "Key challenges", "Progress", "_No_paragraph_style__190", "In 2022, Apple launched Self Service Repair program in Europe", "_No_paragraph_style__191", "2021", "_No_paragraph_style__192", "2017", "_No_paragraph_style__193", "2016", "_No_paragraph_style__194", "2010", "_No_paragraph_style__195", "2007", "_No_paragraph_style__196", "Increased durability \nand repairability enhance \niPhone longevity", "_No_paragraph_style__197", "1,527\nMgal", "2022", "2030\nGOAL", "2010", "2022", "2030\nGOAL", "2010", "2022", "2030", "2010", "_No_paragraph_style__198", "focusing on \nthe finer details \nof our progress", "TableTextLeft_38", "214 suppliers across 26 countries committed to 100 percent renewable electricity for Apple production" ]

[ "TR_0", "TH\nTH_0\nTD_10\nTH_1\nTD_11\nTH_2\nTD_12\nTH_3\nTD_13\nTH_4\nTD_14\nTH_5\nTH_6\nTD_15\nTH_7", "TR", "TD\nTD_0\nTD_1\nTD_2\nTD_3\nTD_4\nTD_5\nTD_6\nTD_7\nTD_8\nTD_9", "TH_8\nTH_9\nTD_16\nTH_10\nTD_17\nTH_11\nTD_18\nTH_12\nTD_19\nTH_13\nTD_20\nTH_14\nTH_15\nTD_21\nTH_16", "TD_30\nTD_31\nTD_32\nTD_33\nTD_34\nTD_35", "TH_17\nTH_18\nTD_22\nTH_19\nTD_23\nTH_20\nTD_24\nTH_21\nTH_22\nTH_23\nTH_24\nTD_25\nTH_25", "TH_26\nTH_27\nTD_26\nTH_28\nTD_27\nTH_29\nTH_30\nTD_28\nTH_31\nTH_32\nTH_33\nTD_29\nTH_34", "TH_36\nTH_37\nTD_50\nTD_51", "LI_8\nL_9", "LI_1", "LBody_3\nLBody_4\nLBody_5\nLBody_6\nLBody_7\nLBody_8", "LI_3", "LBody_11\nLBody_12\nLBody_13\nLBody_14\nLBody_15\nLBody_16", "23,042 \n21,225 \n608 \n255,628 \n139,164 \n207,447 ", "47,943 \n29,300 \n708 \n286,634 \n91,505 \n231,128 _0", "13,160 10,949 560 59 237 715 32 – 609 \n11,343 9,132 560 59 237 715 32 – 609 \n232 130 22 20 9 10 9 2 29 \n84,611 39,457 6,952 10,635 4,265 4,801 4,946 1,049 12,505 \n48,215 25,450 0 0 4,265 0 4,946 1,049 12,505 ", "146 \n146 _0\n217 \n87,732 \n7,664 ", "146 _1\n146 _2\n104 \n52,977 \n0 _2", "0 _3\n0 _4\n111 \n33,492 \n7,664 _0", "0 _5\n0 _6\n2 \n1,263 \n0 _7", "2,812 \n2,812 _0\n159 \n83,285 \n83,285 _0", "15,211 12,231 509 \n13,727 10,747 509 \n232 144 15 \n85,354 43,116 4,400 \n17,503 0 0 ", "83 \n83 _0\n23 _0\n12,162 \n0 _8", "337 \n337 _0\n5 \n2,463 \n0 _9", "743 \n743 _0\n12 \n5,320 \n0 _10", "50 390 868 \n50 390 868 _0\n12 9 13 \n5,826 7,490 4,578 \n5,826 7,490 4,187 ", "19,360 \n2,201 \n305 \n123,855 \n0 _11", "19,360 _0\n2,201 _0\n160 \n75,836 \n0 _12", "0 _13\n0 _14\n123 \n36,959 \n0 _15", "0 _16\n0 _17\n18 \n9,965 \n0 _18", "0 _19\n0 _20\n3 \n1,095 \n0 _21", "6,158 3,548 2,610 \n6,158 3,548 2,610 _0\n171 98 72 \n77,425 44,606 32,819 \n74,002 44,606 29,397 ", "Maiden, North Carolina \nOur Maiden, North Carolina, data center has earned the LEED Platinum certification from the U.S. Green Building Council—the first data center of its size to be so honored. \nOn any given day, between 60 and 100 percent of the energy it uses is generated onsite through our biogas fuel cells and two 20-megawatt solar arrays—the nation’s largest privately owned renewable energy installation. It generates 167 million kilowatt-\nhours of renewable energy per year, enough to power the equivalent of 12,700 North Carolina homes. And we’ll finish another 17-megawatt solar array, capable of producing 39 million kilowatt-hours per year, later in 2015. We purchase any remaining power we need from entirely clean sources located within North Carolina. ", "LBody_25\nLBody_26\nLBody_27\nLBody_28", "LI_9\nL_10", "Parameter \nQuantity \nUnits \nBoundary/ Protocol ", "Natural Gas Consumption: \n9,139,071 \nTherms \nWorldwide occupied properties / Apple Internal Protocol ", "Biogas Purchases \n5,403,276 \nTherms _0\nWorldwide occupied properties / Invoiced Quantities ", "Electricity Consumption: \n845 \nMillion kilowatt hours (mkWh) \nWorldwide occupied properties / Apple Internal Protocol _0", "Total Renewable Energy Certificates \n987 \nMillion kilowatt hours (mkWh) _0\nWorldwide / Invoiced quantities amp; self-generated ", "Applied Renewable Energy Certificates (excludes purchases for Mesa, AZ facility) \n692 \nMillion kilowatt hours (mkWh) _1\nWorldwide occupied properties / Apple Internal Protocol _1", "Scope 1 GHG Emissions \n56,722 \nmetric tons of carbon dioxide equivalent (tCO2e) \nWorldwide occupied properties / WRI/WBCSD GHG Protocol ", "Effective Scope 1 GHG Emissions (Scope 1 emissions – Biogas purchases) \n28,486 \ntCO2e \nWorldwide occupied properties / Apple Internal Protocol _2", "Gross Scope 2 GHG Emissions \n306,675 \ntCO2e _0\nWorldwide occupied properties / WRI/WBCSD GHG Protocol _0", "Effective Scope 2 GHG Emissions (Electric Consumption – Renewable Purchases) \n63,213 \ntCO2e _1\nWorldwide occupied properties / WRI/WBCSD GHG Protocol _1", "Scope 3 GHG Emissions (Employee Commute amp; Air Travel) \n266,965 \ntCO2e _2\nWorldwide occupied properties / WRI/WBCSD GHG Protocol Value Chain (Scope 3) ", "Water Withdrawal \n1,839,812 \ncubic meters 3(m) \nWorldwide occupied properties / Apple Internal Protocol _3", "Trash disposed in Landfill \n4,188 \nMetric tonnes \nWorldwide occupied properties / Apple Internal Protocol _4", "Hazardous Waste (Regulated waste) \n230 \nMetric tonnes _0\nWorldwide occupied properties / Apple Internal Protocol _5", "Recycled Material (Removal by recycling contractor) \n8,707 \nMetric tonnes _1\nWorldwide occupied properties / Apple Internal Protocol _6", " Manufacturing \nTransportation \nProduct Use \nRecycling ", "24.763.237 \n1.611.744 \n7.031.009 \n451.775 ", "[metric tons CO2e] \n[metric tons CO2e] _0\n[metric tons CO2e] _1\n[metric tons CO2e] _2", "LI_10", "LBody_30\nLBody_31\nLBody_32", "LI_11", "LBody_33\nLBody_34\nLBody_35", "Lead \nArsenic \nPolyvinyl Chloride (PVC) ", "Formerly used in display \nTraditionally used for clarity \nStill widely used by other ", "glass and solder. Phased out \nin glass. Our display glass has \ncompanies in computers, cables, ", "completely from our \nbeen arsenic-free since 2008. \nand power cords. We began ", "6,924 6,924 – – \n6,924 6,924 – – _0\n207,447 – 90,473 116,974 ", "7,214 \n7,214 _0\n231,128 ", "Page 3 \nEnvironmental Responsibility at Apple ", "Page 4 \nClimate Change ", "Page 11 \nRenewable Resources ", "Page 18 \nFinite Resources ", "Page 23 \nToxins ", "Page 25 \nAppendix A ", "Page 26 \nAppendix B ", "Page 34 \nAppendix C ", "LI", "LBody\nLBody_0", "LI_0", "LBody_1\nLBody_2", "PV1 \n19% ", "PV2 \n20% ", "Fuel Cells \n37% ", "NC GreenPower \n24% ", "Apple’s Effective Emissions \n0 ", "LI_2", "LBody_9\nLBody_10", "LI_4", "LBody_17\nLBody_18", "LI_5", "LBody_19\nLBody_20", "LI_6", "LBody_21\nLBody_22", "LI_7", "LBody_23\nLBody_24", "Oregon Wind \n99% ", "Utility Green \n1% ", "Apple’s Effective Emissions _0\n0 _1", "products in 2006. \nphasing out PVC in 1995.9 ", "787 \n787 _0", "2,025 \n2,025 _0", "8% \n46% ", "7,214 _1\n7,214 _2", "39% \n68% ", "Environmental Responsibility Report ", "2015 Progress Report, Covering FY2014 ", "Our micro-hydro project uses the natural drops in elevation along the Deschutes River to help power our Prineville, Oregon, data center. ", "Contents ", "Environmental Health and Safety Policy Statement ", "Carbon Assurance and Review Statements ", "Facilities Emissions: Scope 1, 2, and 3 Carbon Emissions Disclosure ", "Conserve precious resources so we all can thrive. ", "Pioneer the use of greener materials in our products and processes. ", "driving energy efficiency in our products. ", "Why we measure our carbon footprint so rigorously. ", "We take a thorough approach to measuring and taking responsibility for our environmental impact. In fact, we know of no other company in our industry that goes so far in measuring, verifying, and disclosing its carbon emissions. Instead of reporting just the carbon footprint of the facilities we own, we also include the carbon footprint of our supply chain. And we don’t use generalized industry-standard measurement models— we use a comprehensive product life cycle analysis that measures the carbon footprint throughout the entire life of our products, so everything is meticulously accounted for. That means adding up emissions generated from the manufacturing, transportation, use, and recycling of our products, as well as emissions generated by all our facilities. And while we’re constantly improving, we’re also constantly reporting—even when our numbers aren’t as good as we’d like them to be. ", "0.4M ", "7.0M ", "Optimizing new HVAC and lighting controls with strategies such as duct static pressure reset, supply air temperature reset, intelligent scheduling, and daylighting ", "For existing buildings, troubleshooting outside air economizer operation, replacing ", "cost, and not first cost ", "100 percent of our data centers run on 100 percent renewable energy. ", "Since 2012, all our data centers have been powered by 100 percent renewable energy sources. That means no matter how much data they handle, there is a zero greenhouse gas impact on the environment from their energy use. These data centers use renewable energy sources like solar, wind, biogas fuel cells, micro-hydro power, and geothermal power from onsite and locally obtained resources. On any given day, our data centers will use renewable energy to serve tens of billions of messages, more than a billion photos, and tens of millions of FaceTime video calls. They also run services like Siri, the iTunes Store, the App Store, and Maps. So every time a song is downloaded from iTunes, an app is installed from the Mac App Store, or a book is downloaded from iBooks, the energy Apple uses is provided by nature. ", "Solar Arrays + Fuel Cell Farm ", "Maiden, North Carolina 100% renewable since opening June 2010 ", "Duke Energy Carolinas Default Grid Mix ", "Apple Actual Renewable Energy Use ", "Nuclear 51% ", "Coal 38% ", "Other 11% ", "Renewable lt;1% ", "2014 Emissions (metric tons CO2e/year) ", "Default Grid Emissions 92,306 ", "Duke Energy Carolinas: 2014 Statistical Supplement generation data Apple Energy: Actual fiscal 2014 energy data ", "Wind Power + Micro-Hydro Power ", "Energy: Direct (Therms) and Indirect (Million kilowatt hours (mkWh)) ", "Renewable Energy Certificates (mkWH) ", "Water (Total withdrawal) ", "Greenhouse Gas (GHG) Emissions: Direct Scope 1 emissions by weight, Indirect Scope 2 emissions by weight, Indirect Scope 3 emissions by weight (Employee Commute and Air Travel) ", "Waste Quantities and Disposition ", "Appropriateness and robustness of underlying reporting systems and processes, used to collect, analyze, and review the environmental information reported; ", "• Assurance of select environmental data and information included in the Report for the fiscal year 2014 reporting period (September 29, 2013 through September 27, 2014), specifically, in accordance with Apple’s definitions and • World Resources Institute (WRI)/World Business Council for Sustainable Development (WBCSD) Greenhouse Gas Protocol: ", "Text or other written statements associated with the Report ", "Activities outside the defined assurance period ", "Excluded from the scope of our work is any assurance of information relating to: ", "Site visits to Apple facilities in Shanghai, China; Tokyo, Japan; and Prineville, Oregon; ", "Visit to Apple corporate offices in Cupertino, California; ", "Interviews with relevant personnel of Apple (10 individuals including employees and external contractors at the corporate level); ", "Review of internal and external documentary evidence produced by Apple; ", "Audit of environmental performance data presented in the Report, including a detailed review of a sample of data against source data; and ", "Review of Apple information systems for collection, aggregation, analysis and internal verification and review of environmental data. ", "BVNA undertook the following activities: ", "The Energy, Water, Waste, and Scope 1, 2 amp; 3 GHG Emissions assertions shown above are materially correct and are a fair representation of the data and information; and ", "Apple has established appropriate systems for the collection, aggregation and analysis of relevant environmental information, and has implemented underlying internal assurance practices that provide a reasonable degree of confidence that such information is complete and accurate. ", "Based on the assurance process and procedures conducted, we conclude that: ", "The system, boundaries and functional unit are clearly defined ", "Assumptions and estimations made are appropriate ", "The review of the corporate annual carbon footprint has considered the following criteria: ", "is not materially correct and is not a fair representation of GHG data and information, and ", "has not been prepared in accordance with the related International Standard on GHG quantification, monitoring and reporting. ", "Based on the process and procedures conducted, there is no evidence that the Greenhouse Gas (GHG) assertion with regards to scope 3 corporate carbon footprint ", "Sales data for FY2014, excluding accessories ", "Regional distribution of sold units and country specific allocation per product to 15 major sell-in countries ", "As part of this review and verification Apple disclosed following data to Fraunhofer IZM: ", "Product specific data on transportation including breakdown of air and sea shipment ", "Life cycle GHG emissions for all products, differentiating the actual product configurations (i.e. memory capacity) ", "Calculation methodology for the company carbon footprint and methodological changes implemented in 2014 ", "The total company carbon footprint – scope 3 for the fiscal year 2014 ", "LBody_29", "Detailed analysis of the CCF including: ", "The breakdown of the CCF into life cycle phases manufacturing, transportation, product use and recycling ", "Detailed product specific split into life cycle phases ", "The contribution of individual products and product families to the overall CCF ", "CCF Review and Verification Client: Apple Inc. ", "Are product LCAs referenced correctly? ", "Are results for products, for which no full LCA review was undertaken, plausible? ", "Are carbon emission data for individual products plausible in the light of methodological changes as indicated by Apple? ", "This review comprises a check of selected data, which are most influential to the overall company carbon footprint. The overall plausibility check addressed the following questions: ", "Prineville, Oregon 100% renewable since opening May 2012 ", "Pacific Power Default Grid Mix ", "Apple Actual Renewable Energy Use _0", "Coal 65% ", "Natural Gas 13% ", "Other 13% ", "Micro-Hydro (to come) ", "Renewable 9% ", "2014 Emissions (metric tons CO2e/year) ", "Default Grid Emissions 10,393 ", "Pacific Power: www.oregon.gov/energy/pages/oregons_electric_power_mix.aspx Apple Energy: Actual fiscal 2014 energy data ", "Reno, Nevada 100% renewable since opening December 2012 ", "NV Energy—North Default Grid Mix ", "Apple Actual Renewable Energy Use ", "Natural Gas 48% ", "Local Geothermal 100% ", "Coal 36% ", "(PV Forthcoming) ", "Other 5% ", "Renewable 11% ", "2014 Emissions (metric tons CO2e/year) ", "Default Grid Emissions 7,344 ", "Apple’s Effective Emissions 0 ", "NV Energy: www.nvenergy.com/bill_inserts/2015/Power-Content-North_2015-01_web.pdf Apple Energy: Actual fiscal 2014 energy data ", "Newark, California 100% renewable since January 2013 ", "Pacific Gas amp; Electric Default Grid Mix ", "Apple Actual Renewable Energy Use ", "Natural Gas 28% ", "Bundled Grid 61% (mostly wind)", "Nuclear 22% ", "Other 28% ", "Grid (mostly wind) 39% ", "Renewable 22% ", "2014 Emissions (metric tons CO2e/year) ", "Default Grid Emissions 38,278 ", "Apple’s Effective Emissions 0 ", "PGamp;E: www.pgecurrents.com/2015/01/30/pge-cuts-carbon-emissions-with-clean-energy/ Apple Energy: Actual fiscal 2014 energy data ", "2014 ", "Fiscal 2012 ", "CorporateCupertino, CAElk Grove, CA Austin, TX Other U.S. Cork, Ireland SingaporeChina Other International ", "Data centers ", "Maiden, NC ", "Newark, CA ", "Prineville, OR ", "Retail stores ", "Domestic (U.S.)", "International ", "Employee travelFleet Vehicles Employee CommuteBusiness Travel (air and vehicle) ", "Totals ", "Emissions reduction from renewable energy ", "Fiscal 2013 ", "CorporateCupertino, CAElk Grove, CA ", "Austin, TX ", "Other U.S. ", "Cork, Ireland ", "SingaporeChina Other International ", "Data centers ", "Maiden, NC ", "Newark, CA ", "Prineville, OR ", "Reno, NV ", "Retail stores Domestic (U.S.)International ", "Employee travel", "Fleet Vehicles ", "Employee Commute", "134,685 ", "Business Travel (air and vehicle) ", "96,443 ", "Totals ", "Emissions reduction from renewable energy " ]

[ "Table_data_semibold__161\nTable_data_grey_left_79\nTable_data_semibold__162\nTable_data_grey_left_80\nTable_data_semibold__163\nTable_data_grey_left_81\nTable_data_semibold__164\nTable_data_grey_left_82\nTable_data_semibold__165\nTable_data_grey_left_83", "TR_6", "TD_82\nTD_83\nTD_84\nTD_85\nTD_86\nTD_87\nTD_88\nTD_89", "Report Notes:\n• This report is published annually and covers fiscal year 2016 activities, unless otherwise noted.\n• This report addresses environmental impacts and activities at Apple-owned facilities (corporate offices, data centers, and retail stores), as well as the life-cycle impacts of our products, including in the manufacturing, transportation, use, and end-of-life phases.\n• To provide feedback on this report, please contact environment-report@apple.com.\n\t¹\t“Boards and Flexes” refers to printed circuit boards and flexible printed circuits.\n\t²\tCO₂e, or carbon dioxide equivalent, is a standard unit for measuring carbon footprints. It translates into \t\t\tone number the impact of different greenhouse gases based on their potential to contribute to climate \t\t\tchange.\n\t³\tGreenhouse gas equivalencies calculated using the U.S. EPA Greenhouse Gas Equivalencies Calculator: \n\t\twww.epa.gov/energy/greenhouse-gas-equivalencies-calculator.\n\t⁴\tBased on sales-weighted averages.\n\t⁵\tBased on the average residential cost of electricity in the U.S. in 2015; includes customer use scenarios \t\t\tand power consumed by the power adapter when disconnected from the iPhone.\n\t⁶\tBased on the EPA ENERGY STAR database for Desktop Computers as of February 7, 2017.\n\t⁷\tThe tin in the solder has been verified by a third party to be 100 percent recycled. As of April 2017, we’re \n\t\ttransitioning iPhone 6s production to use 100 percent recycled tin solder for the main logic board.\n\t⁸\tBased on expected equivalent fiber production from our forestry projects and virgin fiber used for Apple \t\t\tproduct packaging. To determine the output of Apple’s projects, we work with our partners to understand \t\t\tthe productive potential of these working forests. The forest management plans required to achieve or \t\t\tmaintain certification limit harvest volumes to sustainable levels. We use these potential harvest volumes \t\t\tto estimate the sustainable productive capacity of these forests.\n\t⁹\tAnhui, Fujian, Guangxi, Guangdong, Hubei, Hunan, and Yunnan provinces.\n\t¹⁰\tEvery Apple product is free of PVC and phthalates with the exception of power cords in India and \n\t\tSouth Korea, where we continue to seek government approval for our PVC and phthalates replacement.\n\n© 2017 Apple Inc. All rights reserved. Apple, the Apple logo, AirPort Express, AirPort Extreme, Apple Pencil, \nApple TV, Apple Watch, FaceTime, iBooks, iMac, iMessage, iPad, iPad Pro, iPhone, iPod, iTunes, Mac, Mac Pro, MacBook, MacBook Pro, Mac mini, macOS, and Siri are trademarks of Apple Inc., registered in the U.S. and \nother countries. Touch Bar is a trademark of Apple Inc. App Store, AppleCare, and Apple Store are service marks of Apple Inc., registered in the U.S. and other countries. ENERGY STAR is a U.S. registered mark. Other product and company names mentioned herein may be trademarks of their respective companies. April 2017", "Table_data_semibold__86\nTable_data_grey_left_24\nTable_data_semibold__87\nTable_data_grey_left_25\nTable_data_semibold__88\nTable_data_grey_left_26\nTable_data_semibold__89\nTable_data_grey_left_27\nTable_data_semibold__90\nTable_data_grey_left_28", "Table_data_semibold__106\nTable_data_grey_left_39\nTable_data_semibold__107\nTable_data_grey_left_40\nTable_data_semibold__108\nTable_data_grey_left_41\nTable_data_semibold__109\nTable_data_grey_left_42\nTable_data_semibold__110\nTable_data_grey_left_43", "Table_data_semibold__126\nTable_data_grey_left_54\nTable_data_semibold__127\nTable_data_grey_left_55\nTable_data_semibold__128\nTable_data_grey_left_56\nTable_data_semibold__129\nTable_data_grey_left_57\nTable_data_semibold__130\nTable_data_grey_left_58", "Table_data_semibold__146\nTable_data_grey_left_69\nTable_data_semibold__147\nTable_data_grey_left_70\nTable_data_semibold__148\nTable_data_grey_left_71\nTable_data_semibold__149\nTable_data_grey_left_72\nTable_data_semibold__150\nTable_data_grey_left_73", "Table_data_semibold__181\nTable_data_grey_left_94\nTable_data_semibold__182\nTable_data_grey_left_95\nTable_data_semibold__183\nTable_data_grey_left_96\nTable_data_semibold__184\nTable_data_grey_left_97\nTable_data_semibold__185\nTable_data_grey_left_98", "Table_data_semibold__206\nTable_data_grey_left_114\nTable_data_semibold__207\nTable_data_grey_left_115\nTable_data_semibold__208\nTable_data_grey_left_116\nTable_data_semibold__209\nTable_data_grey_left_117\nTable_data_semibold__210\nTable_data_grey_left_118", "Our comprehensive 2016 carbon footprint. \nWe’re helping our suppliers switch to renewable energy.\nLowering carbon emissions by focusing on aluminum.\nWe’re building the greenest corporate headquarters \non the planet.\nProducing renewable energy to meet our own needs.\nThe cleanest energy is the energy you never use. \nWe’re lessening our impact when we commute or hit \nthe road. \niMessage, FaceTime, and Siri run on 100 percent \nrenewable energy. \nSince 2008, we’ve reduced the average energy consumed by Apple products by 70 percent.⁴\nWe’re finding new ways to keep old materials out \nof landfills\nWe hold ourselves accountable for every drop of \nwater we use.\nWe’re not just protecting forests. We’re protecting future \ngenerations of them.", "Apple Inc. is committed to protecting the environment, health, and \nsafety of our employees, customers and the global communities where \nwe operate.\nWe recognize that by integrating sound environmental, health, and safety management practices into all aspects of our business, we can offer \ntechnologically innovative products and services while conserving and enhancing resources for future generations.\nApple strives for continuous improvement in our environmental, health \nand safety management systems and in the environmental quality of our products, processes, and services.\nMeet or exceed all applicable environmental, health and safety \nrequirements. We will evaluate our EHS performance by monitoring \nongoing performance results and through periodic management reviews.\nWhere laws and regulations do not provide adequate controls, we will adopt our own standards to protect human health and the environment.\nSupport and promote sound scientific principles and fiscally responsible public policy that enhance environmental quality, health and safety.\nAdvocate the adoption of prudent environmental, health and safety \nprinciples and practices by our contractors, vendors, and suppliers.\nCommunicate environmental, health, and safety policies and programs \nto Apple employees and stakeholders.\nDesign, manage and operate our facilities to maximize safety, promote energy efficiency, and protect the environment.\nStrive to create products that are safe in their intended use, conserve energy and materials, and prevent pollution throughout the product life cycle including design, manufacture, use, and end-of-life management.\nEnsure that all employees are aware of their role and responsibility to \nfulfill and sustain Apple’s environmental, health and safety management systems and policy.\nLuca Maestri\nSenior Vice President and CFO\nJanuary 2017", "Notes: \nApple’s fiscal year is the 52- or 53-week period that ends on the last Saturday of September. The Company’s fiscal years 2016, 2015, and 2014 ended on September 24, 2016, September 26, 2015, \nand September 27, 2014, respectively, and each spanned 52 weeks.\n¹As reported in Apple’s Annual Report filed with the SEC (Form 10-K) for the fiscal year ending September 24, 2016 (fiscal year 2016).\n²Scope 1 emissions for fiscal year 2016 include 261,580 gallons of diesel use in emergency back up generators at data centers and 21,840 kg of propane in corporate offices. Scope 1 emissions for fiscal year 2016 now include natural gas use at distribution centers.\n³In fiscal year 2015, we adjusted our methodology to better reflect locations where natural gas is used. We estimate natural gas usage in offices and retail stores where we are not billed based on usage (e.g., leased\noffice space or retail stores within malls). This more accurate methodology resulted in a decrease in emissions in fiscal year 2015.\n⁴Beginning in fiscal year 2016, we include distribution centers and colocation facilities as part of Apple’s electricity use and association greenhouse gas emissions. We had previously reported colocation center electricity use separately.\n⁵Scope 3 emissions reported in this table include only those emissions associated with employee commute and business travel, calculated by employee miles traveled. Scope 3 emissions associated with product\nlife-cycle emissions are disclosed separately. \n⁶In fiscal year 2015, we adjusted our methodology to reflect actual travel instead of booked travel. Using this more accurate methodology revealed overestimates for previous years.\n⁷Because energy efficiency measures have lasting benefits, energy efficiency savings are calculated cumulatively since 2011.\n⁸We calculate and report our progress toward 100 percent renewable energy by calendar year. In calendar year 2016, we used 1,572 million kilowatt-hours of electricity worldwide.\n⁹Prior to fiscal year 2015, composted quantities were reported as part of the “recycled” figure.", "Table_data_semibold__166\nTable_data_grey_left_84\nTable_data_semibold__167\nTable_data_grey_left_85\nTable_data_semibold__168\nTable_data_grey_left_86\nTable_data_semibold__169\nTable_data_grey_left_87\nTable_data_semibold__170\nTable_data_grey_left_88", "Table_data_semibold__186\nTable_data_grey_left_99\nTable_data_semibold__187\nTable_data_grey_left_100\nTable_data_semibold__188\nTable_data_grey_left_101\nTable_data_semibold__189\nTable_data_grey_left_102\nTable_data_semibold__190\nTable_data_grey_left_103", "Apple’s Operations: Environmental Data\n• Facilities Environmental Key Performance Indicators\n• Scopes 1 and 2 Building Carbon Emissions\n• FY2016 Natural Gas and Electricity Use\nData Center Energy Supplement\nAssurance and Review Statements\n• Corporate energy, carbon, waste and water data\n• Product life cycle carbon footprint\n• Fiber footprint\nEnvironmental Health and Safety Policy Statement ", "Maiden, North Carolina\nNewark, California\nPrineville, Oregon\nReno, Nevada\nMesa, Arizona\nViborg, Denmark\nAthenry, Ireland\nOur colocation facilities \nEnergy Use and Emissions at Apple’s Colocation Facilities\nRegional Energy Use at Apple’s Colocation Facilities \n(Fiscal Year 2016)\t\t\t\t\t\t\t", "Page 3\tEnvironmental Responsibility at Apple\nPage 5\tClimate Change\nPage 16\tResources\nPage 28\tSafer Materials \nPage 32\tBetter Together\nPage 36\tAppendix A \nPage 41\tAppendix B\nPage 47\tAppendix C \nPage 57\tAppendix D ", "Can we power a global business with the sun, wind, and water?\nCan we get 100 percent of our supply chain to move to 100 percent renewable energy?\nCan we one day stop mining the earth altogether?\nCan we use only 100 percent recycled and responsibly sourced \npaper in our packaging?\nCan we improve on the world’s best materials?\nThat’s Apple: asking bold questions, tackling big problems, and relentlessly innovating to solve them. The approach also lies at the heart of our global environmental strategy—driving us to make not just the best products in the world, but the best products for the world.\nApple’s 2017 Environmental Responsibility Report, covering fiscal year 2016, is our tenth annual update. It highlights the ambitions we have set for ourselves and our progress toward meeting them. We remain focused on three priorities through which we—and our stakeholders—believe Apple can make the biggest difference: \nWe still have a long way to go and a lot to learn. But we’re making tremendous progress.\nIn 2016, 96 percent of the electricity used at our global facilities came \nfrom renewable energy, reducing our carbon emissions by nearly 585,000 metric tons. We’re 100 percent renewable in 24 countries—and all of Apple’s data centers. ", "Table_subhead_center_32\nTable_subhead_center_33\nTable_subhead_center_34\nTable_subhead_center_35\nTable_subhead_center_36", "We mapped our carbon footprint, \nand we’re working to eliminate it.\nManufacturing a smaller footprint. \nOur goal is to power our facilities worldwide with 100 percent renewable energy.\nWe take responsibility for every watt \nof power you use on your device.\nMacBook Pro consumes 15 percent less energy than the previous MacBook Pro models. iMac consumes 97 percent less energy in sleep mode than the first generation. Mac mini consumes 40 percent less power when idle than the previous generation. And you can charge your iPhone 7 once a day for a year for only 61 cents.⁵ These advancements \nare bringing down our overall carbon footprint and your electricity bill at the same time.\nWe’re taking responsibility for shipping and recycling.\nOur goal is a closed-loop supply chain.\nWhen we use renewable resources, \nwe make sure to use them responsibly.", "Table_subhead_center_2\nTable_data_semibold__4\nTable_subhead_center_3\nTable_data_semibold__5\nTable_data_semibold__6\nTable_data_semibold__7\nTable_data_semibold__8\nTable_data_semibold__9", "Table_subhead_center_4\nTable_data_semibold__28\nTable_subhead_center_5\nTable_data_semibold__29\nTable_data_semibold__30\nTable_data_semibold__31\nTable_data_semibold__32\nTable_data_semibold__33", "Table_subhead_center_7\nTable_data_semibold__40\nTable_subhead_center_8\nTable_data_semibold__41\nTable_data_semibold__42\nTable_data_semibold__43\nTable_data_semibold__44\nTable_data_semibold__45", "Table_subhead_center_12\nTable_data_semibold__64\nTable_subhead_center_13\nTable_data_semibold__65\nTable_data_semibold__66\nTable_data_semibold__67\nTable_data_semibold__68\nTable_data_semibold__69", "Table_subhead_center_14\nTable_data_grey_left_10\nTable_subhead_center_15\nTable_grey_right_6_8_52\nTable_grey_right_6_8_53\nTable_grey_right_6_8_54\nTable_grey_right_6_8_55\nTable_grey_right_6_8_56", "Cupertino, CA\nElk Grove, CA\nAustin, TX\nOther U.S.\nCork, Ireland\nSingapore\nChina\nOther International", "18,693\n397\n248\n883\n780\n65\n38\n1005", "17,121\n397_0\n248_0\n883_0\n780_0\n65_0\n38_0\n1005_0", "52,884\n3790\n32,305\n7476\n8915\n8084\n10,878\n42,658", "0\n0_0\n0_1\n0_2\n0_3\n0_4\n0_5\n30,408_0", "Cupertino, CA_0\nElk Grove, CA_0\nAustin, TX_0\nOther U.S._0\nCork, Ireland_0\nSingapore_0\nChina_0\nOther International_0", "14,792\n369\n233\n121\n892\n0_12\n117\n435", "13,256\n369_0\n233_0\n121_0\n892_0\n0_13\n117_0\n435_0", "42,074\n3279\n20,874\n2715\n6227\n5310\n9050\n16,605", "0_14\n0_15\n0_16\n0_17\n0_18\n3767\n2201\n13,596", "Cupertino, CA_1\nElk Grove, CA_1\nAustin, TX_1\nOther U.S._1\nCork, Ireland_1\nSingapore_1\nChina_1\nOther International_1", "14,310\n411\n148\n115\n1000\n51\n385\n296_0", "12,929\n411_0\n148_0\n115_0\n1000_0\n51_0\n385_0\n296_1", "36,496\n2516\n15,149\n2270\n7678\n6852\n8577\n7304", "0_28\n0_29\n0_30\n0_31\n0_32\n6852_0\n8577_0\n6126", "Cupertino, CA_2\nElk Grove, CA_2\nAustin, TX_2\nOther U.S._2\nCork, Ireland_2\nSingapore_2\nChina_2\nOther International_2", "12,231\n509\n83\n337\n743\n50\n390\n868", "10,747\n509_0\n83_0\n337_0\n743_0\n50_0\n390_0\n868_0", "43,116\n4400\n12,162\n2463\n5320\n5826\n7490\n4578", "0_42\n0_43\n0_44\n0_45\n0_46\n5826_0\n7490_0\n4187", "Cupertino, CA_3\nElk Grove, CA_3\nAustin, TX_3\nOther U.S._3\nCork, Ireland_3\nSingapore_3\nChina_3\nOther International_3", "13,256_0\n369_1\n233_1\n121_1\n892_1\n0_57\n117_1\n435_1", "39,457\n6952\n10,635\n4265\n4801\n4946\n1049\n12,505", "25,450\n0_58\n0_59\n4265_0\n0_60\n4946_0\n1049_0\n12,505_0", "Cupertino, CA_4\nElk Grove, CA_4\nAustin, TX_4\nOther U.S._4\nCork, Ireland_4\nSingapore_4\nChina_4\nOther International_4", "39,428\n7930\n10,139\n2141\n4598\n3243\n280\n14,424", "39,428_0\n0_67\n0_68\n2141_0\n0_69\n3243_0\n280_0\n14,424_0", "Cupertino, CA_5\nElk Grove, CA_5\nAustin, TX_5\nOther U.S.¹\nCork, Ireland_5\nSingapore_5\nChina_5\nOther International¹", "351,905\n7456\n4668\n16,552 \n13,767\n0_75\n1874\n17,779", "29,712_0\n0_76\n0_77\n0_78\n0_79\n0_80\n0_81\n0_82", "260\n13_1\n54\n20\n14\n18_1\n12\n82", "260_0\n13_2\n54_0\n20_0\n14_0\n18_2\n12_0\n28", "When products can be used longer, fewer resources need to be extracted from the earth to make new ones. So we assess all of our products in our Reliability Testing Lab, using rigorous testing methods that simulate our customers’ real-world experiences with their devices. For example, we analyze how devices stand up to extreme heat and cold, exposure to water and everyday chemicals, and scratching tests from materials like steel wool and denim. In addition to industry-standard measures, we also devise our own tests and even build custom testing machinery. We design these tests based on our studies of user behavior and by analyzing returned products to fully understand any problems.\nIn the event that something does break, we have programs like AppleCare and Apple-certified repair services to help our customers use their devices longer. We also release regular free software updates that keep our products current and extend their lives as long as possible. And we design those software updates to be compatible with older generations of products. macOS Sierra, for example, is compatible with Mac models dating back to late 2009. And when customers decide to upgrade to new devices, the old ones often have new lives with friends or family, or in the refurbished market through programs like Apple Renew.\nTo protect people and the planet, we set strict standards on the \nmaterials used in our devices, often going far beyond what’s required by law. We also built the Environmental Testing Lab, where our chemists and toxicologists look for any potentially harmful substances rather than waiting for a third party to identify them for us. One process we use involves laser-based instruments—just like the one used by the Mars rover to analyze soil samples—to ensure that our products are free of beryllium. The lab also uses tools like inductively coupled plasma mass spectrometry, X-ray fluorescence spectroscopy, and ion, liquid, or gas chromatography. If we find an issue, we work with the supplier to correct it. Since creating our Cupertino Environmental Testing Lab in 2006, we’ve grown it to over 20 times its original size, and have regularly updated it with state-of-the-art equipment. We’ve also been building out testing labs at our manufacturing facilities to test and validate products throughout the manufacturing process.\nWe started our Full Material Disclosure program to identify all the substances we use in all the parts we use. We’ve already looked at more than 20,000 individual components out of the 40,000 present in all our products, prioritizing materials that come into frequent skin contact and those present in greatest quantity, and we get data on more parts every day. We assess the different chemicals in those components using \n18 different criteria. This helps us understand their effect on people’s health and on the environment.\nWe start this process early in the design and manufacturing phases so we can take appropriate actions to remove or replace hazardous chemicals. In some cases, few replacements are readily available, so we work with our suppliers to find substitutions, switch to another supplier that uses safer materials, or explore how to eliminate the need for that substance. \nIt took us four years to remove polyvinyl chloride, or PVC, from our power cords and headphone cables. We tested dozens of formulations until we finally found the right blend of durability, safety, and environmental performance in the nonchlorinated and nonbrominated thermoplastic elastomers that we used as replacements. \nWe carefully test all product materials that come in contact with skin. For example, many people are allergic to nickel, which is common in many alloys like stainless steel. So we do nickel leach testing on Apple Watch and other wearable devices to measure how quickly nickel can transfer from metal parts into sweat. We even create artificial sweat to conduct such tests. By placing different components in jars of the artificial sweat, we can closely monitor samples to ensure that nickel and other allergens and irritants stay where they belong. \nAnd we go far beyond sweat in our testing. We analyze materials that someone might put in their mouth—like an Apple Pencil you might chew on while considering the next line in your drawing—to make sure they’re safe. We also evaluate products after they’ve undergone extensive reliability testing to ensure that they remain safe for our customers, even after years of use and exposure to different environmental conditions.", "Table_data_semibold__34\nTable_subhead_center_6\nTable_data_semibold__35\nTable_data_semibold__36\nTable_data_semibold__37\nTable_data_semibold__38\nTable_data_semibold__39", "Table_data_semibold__46\nTable_subhead_center_9\nTable_data_semibold__47\nTable_data_semibold__48\nTable_data_semibold__49\nTable_data_semibold__50\nTable_data_semibold__51", "Table_subhead_center_10\nTable_data_semibold__52\nTable_data_semibold__53\nTable_data_semibold__54\nTable_data_semibold__55\nTable_data_semibold__56\nTable_data_semibold__57", "Table_data_semibold__58\nTable_subhead_center_11\nTable_data_semibold__59\nTable_data_semibold__60\nTable_data_semibold__61\nTable_data_semibold__62\nTable_data_semibold__63", "Table_subhead_center_25\nTable_subhead_center_26\nTable_subhead_center_27\nTable_subhead_center_28\nTable_subhead_center_29", "10,949\n560\n59\n237\n715\n32\n609", "• Biel Crystal Manufactory Ltd.\n• Catcher Technology\n• Compal Electronics\n• Ibiden\n• Lens Technology\n• Solvay Specialty Polymers\n• Sunwoda Electronics", "Table_data_grey_left\nTable_grey_right_6_8\nTable_grey_right_6_8_0\nTable_grey_right_6_8_1\nTable_grey_right_6_8_2\nTable_grey_right_6_8_3", "Table_data_grey_left_0\nTable_grey_right_6_8_4\nTable_grey_right_6_8_5\nTable_grey_right_6_8_6\nTable_grey_right_6_8_7\nTable_grey_right_6_8_8", "Table_data_semibold__10\nTable_data_semibold__11\nTable_data_semibold__12\nTable_data_semibold__13\nTable_data_semibold__14\nTable_data_semibold__15", "Table_data_semibold__16\nTable_data_semibold__17\nTable_data_semibold__18\nTable_data_semibold__19\nTable_data_semibold__20\nTable_data_semibold__21", "Table_data_grey_left_1\nTable_grey_right_6_8_9\nTable_grey_right_6_8_10\nTable_grey_right_6_8_11\nTable_grey_right_6_8_12\nTable_grey_right_6_8_13", "Table_data_grey_left_2\nTable_grey_right_6_8_14\nTable_grey_right_6_8_15\nTable_grey_right_6_8_16\nTable_grey_right_6_8_17\nTable_grey_right_6_8_18", "Table_data_semibold__22\nTable_data_semibold__23\nTable_data_semibold__24\nTable_data_semibold__25\nTable_data_semibold__26\nTable_data_semibold__27", "Table_data_grey_left_5\nTable_grey_right_6_8_27\nTable_grey_right_6_8_28\nTable_grey_right_6_8_29\nTable_grey_right_6_8_30\nTable_grey_right_6_8_31", "Table_data_grey_left_6\nTable_grey_right_6_8_32\nTable_grey_right_6_8_33\nTable_grey_right_6_8_34\nTable_grey_right_6_8_35\nTable_grey_right_6_8_36", "Table_data_grey_left_7\nTable_grey_right_6_8_37\nTable_grey_right_6_8_38\nTable_grey_right_6_8_39\nTable_grey_right_6_8_40\nTable_grey_right_6_8_41", "Table_data_grey_left_8\nTable_grey_right_6_8_42\nTable_grey_right_6_8_43\nTable_grey_right_6_8_44\nTable_grey_right_6_8_45\nTable_grey_right_6_8_46", "Table_data_grey_left_9\nTable_grey_right_6_8_47\nTable_grey_right_6_8_48\nTable_grey_right_6_8_49\nTable_grey_right_6_8_50\nTable_grey_right_6_8_51", "Table_data_grey_left_11\nTable_grey_right_6_8_57\nTable_grey_right_6_8_58\nTable_grey_right_6_8_59\nTable_grey_right_6_8_60\nTable_grey_right_6_8_61", "Table_data_grey_left_13\nTable_grey_right_6_8_65\nTable_grey_right_6_8_66\nTable_grey_right_6_8_67\nTable_grey_right_6_8_68\nTable_grey_right_6_8_69", "Table_data_semibold__70\nTable_data_semibold__71\nTable_data_semibold__72\nTable_data_semibold__73\nTable_data_semibold__74\nTable_data_semibold__75", "103,296\n24,993\n83,912\n31,222\n7601\n83,800", "0_6\n0_7\n0_8\n0_9\n0_10\n2269_0", "11,007\n556\n45\n564\n804\n1449", "9238\n556_0\n45_0\n564_0\n804_0\n1449_0", "244\n130\n115_1\n90\n19\n180", "244_0\n130_0\n115_2\n90_0\n19_0\n177", "Table_data_semibold__219\nTable_data_grey_left_119\nTable_data_grey_left_120\nTable_data_grey_left_121\nTable_data_grey_left_122\nTable_data_semibold__220", "Table_data_semibold__221\nTable_data_grey_left_123\nTable_data_grey_left_124\nTable_data_grey_left_125\nTable_data_grey_left_126\nTable_data_semibold__222", "Table_data_semibold__223\nTable_data_grey_left_127\nTable_data_grey_left_128\nTable_data_grey_left_129\nTable_data_grey_left_130\nTable_data_semibold__224", "Table_data_semibold__225\nTable_data_grey_left_131\nTable_data_grey_left_132\nTable_data_grey_left_133\nTable_data_grey_left_134\nTable_data_semibold__226", "Table_data_semibold__227\nTable_data_grey_left_135\nTable_data_grey_left_136\nTable_data_grey_left_137\nTable_data_grey_left_138\nTable_data_semibold__228", "Table_data_semibold__229\nTable_data_grey_left_139\nTable_data_grey_left_140\nTable_data_grey_left_141\nTable_data_grey_left_142\nTable_data_semibold__230", "Manufacturing \nProduct Usage\n\n\n\n\n\n\n\n\nProduct Transportation and Recycling\nFinite Resources \nRenewable Resources ", "Progress toward 4 gigawatts\nApple’s renewable energy use\nApple scopes 1 and 2 building emissions \nClosing the loop in our supply chain\nCorporate water use", "Table_data_semibold_\nTable_data_semibold__0\nTable_data_semibold__1\nTable_data_semibold__2\nTable_data_semibold__3", "Table_data_grey_left_3\nTable_grey_right_6_8_19\nTable_grey_right_6_8_20\nTable_grey_right_6_8_21\nTable_grey_right_6_8_22", "Table_data_grey_left_4\nTable_grey_right_6_8_23\nTable_grey_right_6_8_24\nTable_grey_right_6_8_25\nTable_grey_right_6_8_26", "Table_subhead_center_18\nTable_subhead_center_19\nTable_subhead_center_20\nTable_subhead_center_21\nTable_subhead_center_22", "Maiden, NC\nNewark, CA\nPrineville, OR\nReno, NV\nMesa, AZ\nColocation Facilities⁴", "26,119\n139\n1077\n713\n683", "126\n139_0\n1077_0\n713_0\n683_0", "Table_data_semibold__91\nTable_data_semibold__92\nTable_data_semibold__93\nTable_data_semibold__94\nTable_data_semibold__95", "Table_data_semibold__111\nTable_data_semibold__112\nTable_data_semibold__113\nTable_data_semibold__114\nTable_data_semibold__115", "Table_data_semibold__131\nTable_data_semibold__132\nTable_data_semibold__133\nTable_data_semibold__134\nTable_data_semibold__135", "Table_data_semibold__151\nTable_data_semibold__152\nTable_data_semibold__153\nTable_data_semibold__154\nTable_data_semibold__155", "Table_data_semibold__171\nTable_data_semibold__172\nTable_data_semibold__173\nTable_data_semibold__174\nTable_data_semibold__175", "Table_data_semibold__191\nTable_data_semibold__192\nTable_data_semibold__193\nTable_data_semibold__194\nTable_data_semibold__195", "— Energy source not yet online.\n¹Scope 1 emissions result from natural gas use for facilities, and gasoline use for fleet vehicles. As is typical, these emissions are tracked separately from our 100 percent renewable energy claim.\n²Scope 2 emissions result from electricity use for facilities. In addition, in fiscal year 2014, Apple owned a facility in Mesa, Arizona, that was operated by a supplier, which had default grid emissions of 151,279 tons \nCO2e and effective emissions of 0 tons CO2e in fiscal year 2014. It was removed from operation in fiscal year 2015.\n³Default Utility Emissions are based on utility-scale and regional default grid emission factors (using the most granular data set available).\n⁴In FY2016, we began tracking electricity used at colocation facilities as part of Apple’s footprint. ", "491,159\n0_83\n185\n0_84\n33\n—", "491,159_0\n0_85\n0_86\n0_87\n0\n—", "Table_data_semibold__211\nTable_data_semibold__212\nTable_data_semibold__213\nTable_data_semibold__214\nTable_data_semibold__215", "Table_subhead_center_37\nTable_subhead_center_38\nTable_subhead_center_39\nTable_subhead_center_40\nTable_subhead_center_41", "Table_subhead_center_42\nTable_subhead_center_43\nTable_subhead_center_44", "To date, seven suppliers have committed to 100 percent clean energy for Apple \nproduction. In addition, Apple has installed 485 megawatts of wind and solar \nprojects across six provinces of China to address upstream emissions and serve \nas a model for suppliers.\nSince 2011, Apple has reduced emissions from our offices, data centers, and retail stores worldwide by 60 percent. Without renewable energy and energy efficiency measures, these emissions would have increased over 200 percent since 2011. \nIn fiscal year 2016, we added colocation facilities and distribution centers to our \nelectricity footprint, contributing to the increase in default emissions. More detailed emissions data is provided in Appendix A.\nOur fiscal year 2016 fiber footprint includes all paper used to package and ship \nproducts, as well as all in-box paper and paper retail bags. This year, we also included our corporate paper use, which accounts for about 1 percent of our total footprint. We calculate our fiber footprint to reflect fiber losses during the paper production process.\nNote: Due to rounding, total percentages don’t add up to 100.", "Using paper more efficiently.\nFiscal year 2016 fiber footprint\nSourcing virgin paper responsibly.\nProtecting sustainable forests.", "We encounter many legal and regulatory frameworks around the world that limit our renewable energy supply options. In each location, we endeavor to choose the strongest approach available to us as defined by these\nguiding principles.\nDisplacement. We seek to displace more-polluting forms of energy in the same electric grid region as our \nfacilities. We accomplish this by taking power directly from Apple-owned installations and by delivering into \nthe grid an amount of renewable energy equal to the amount of energy we take from that grid.\nAdditionality. We strive to create new clean energy that adds to the energy sources already delivering to the \ngrid. This generally means participating in renewable energy projects that would not have been built without Apple’s involvement. We make sure that the energy we count toward our goals is not counted toward regulatory obligations that utilities must meet, such as the Renewable Portfolio Standards adopted by many states.\nAccountability. We apply rigor in measuring and tracking our energy supply resources, and use third-party \nregistries such as WREGIS and NC-RETS, certification programs such as Green-e Energy, and contractual \nprovisions to ensure that all renewable energy supplied to Apple is supplied only to Apple. When no such \nsystem exists, we work with industry partners and governmental entities to create them.", "Table_data_grey_left_12\nTable_grey_right_6_8_62\nTable_grey_right_6_8_63\nTable_grey_right_6_8_64", "Maiden, NC_0\nNewark, CA\nPrineville, OR\nReno, NV_0", "24,530\n0_19\n13\n0_20", "123\n0_21\n13_0\n0_22", "99,907\n26,519\n39,507\n20,653", "0_23\n0_24\n0_25\n0_26", "Maiden, NC_1\nNewark, CA_0\nPrineville, OR_0\nReno, NV_1", "26,835\n0_33\n18\n0_34", "0_35\n0_36\n18_0\n0_37", "92,306\n38,278\n10,392\n7344", "0_38\n0_39\n0_40\n0_41", "Maiden, NC_2\nNewark, CA_1\nPrineville, OR_1\nReno, NV_2", "19,360 \n0_47\n0_48\n0_49", "2201_0\n0_50\n0_51\n0_52", "75,836\n36,959\n9965\n1095", "0_53\n0_54\n0_55\n0_56", "Maiden, NC_5\nNewark, CA_4\nPrineville, OR_3\nReno, NV\nMesa, AZ\nColocation Facilities²", "Table_data_left_7_8\nTable_data_left_7_8_0\nTable_data_left_7_8_1\nTable_data_left_7_8_2", "Table_data_left_7_8_3\nTable_data_left_7_8_4\nTable_data_left_7_8_5\nTable_data_left_7_8_6", "Table_subhead_semibo\nTable_subhead_semibo_0\nTable_subhead_semibo_1\nTable_subhead_semibo_2", "Table_data_left_7_8_11\nTable_data_left_7_8_12\nTable_data_left_7_8_13\nTable_data_left_7_8_14", "Table_data_left_7_8_15\nTable_data_left_7_8_16\nTable_data_left_7_8_17\nTable_data_left_7_8_18", "Table_data_left_7_8_19\nTable_data_left_7_8_20\nTable_data_left_7_8_21\nTable_data_left_7_8_22", "Table_subhead_semibo_3\nTable_subhead_semibo_4\nTable_subhead_semibo_5\nTable_subhead_semibo_6", "Table_data_left_7_8_25\nTable_data_left_7_8_26\nTable_data_left_7_8_27\nTable_data_left_7_8_28", "Table_data_left_7_8_29\nTable_data_left_7_8_30\nTable_data_left_7_8_31\nTable_data_left_7_8_32", "Table_subhead_semibo_7\nTable_subhead_semibo_8\nTable_subhead_semibo_9\nTable_subhead_semibo_10", "Table_data_left_7_8_37\nTable_data_left_7_8_38\nTable_data_left_7_8_39\nTable_data_left_7_8_40", "Table_subhead_semibo_11\nTable_subhead_semibo_12\nTable_subhead_semibo_13\nTable_subhead_semibo_14", "Table_data_left_7_8_47\nTable_data_left_7_8_48\nTable_data_left_7_8_49\nTable_data_left_7_8_50", "Table_data_left_7_8_51\nTable_data_left_7_8_52\nTable_data_left_7_8_53\nTable_data_left_7_8_54", "Table_data_left_7_8_55\nTable_data_left_7_8_56\nTable_data_left_7_8_57\nTable_data_left_7_8_58", "Table_data_left_7_8_59\nTable_data_left_7_8_60\nTable_data_left_7_8_61\nTable_data_left_7_8_62", "Table_subhead_semibo_15\nTable_subhead_semibo_16\nTable_subhead_semibo_17\nTable_subhead_semibo_18", "Table_data_semibold__231\nTable_data_grey_left_143\nTable_data_grey_left_144\nTable_data_grey_left_145", "Table_data_semibold__232\nTable_data_grey_left_146\nTable_data_grey_left_147\nTable_data_grey_left_148", "Table_data_semibold__233\nTable_data_grey_left_149\nTable_data_grey_left_150\nTable_data_grey_left_151", "Table_data_semibold__234\nTable_data_grey_left_152\nTable_data_grey_left_153\nTable_data_grey_left_154", "Table_data_semibold__235\nTable_data_semibold__236\nTable_data_semibold__237\nTable_data_semibold__238", "Joining forces with other organizations.\nCollaborating for joint success.\nSharing best practices.\nAdvocating for strong policies.", "LI", "LBody\nLBody_0\nLBody_1", "LI_0", "LBody_2\nLBody_3\nLBody_4", "Renewable energy ownership. Where feasible, we produce our own renewable energy by building our own renewable energy facilities, including solar arrays, wind farms, biogas fuel cells, and micro-hydro generation systems.\nDedicated renewable energy contracts. Where it’s not feasible to build \nour own generation, we sign long-term renewable energy purchase contracts, supporting new, local projects that meet our robust renewable energy \nsourcing principles. \nGrid purchased renewable energy and environmental attributes. In cases where we aren’t able to create new renewable energy projects ourselves due to local constraints, we directly purchase renewable energy from newer projects in nearby markets, or through available utility green energy programs. When these options are not available, we are willing to procure strong renewable energy credits (RECs) tied to recently constructed renewable energy projects, applying the same rigor to our grid-purchased renewables as we do to our Apple-created renewables. When Apple acquires RECs, we require that they are Green-e Energy certified and come from the same power grid—and preferably the same state—as the Apple facility they support.", "Facilities Environmental Key Performance Indicators \n(Page 37)\nScopes 1 and 2 Building Carbon Emissions (Pages 38–39)\nFiscal Year 2016 Natural Gas and Electricity Use (Page 40)", "Table_subhead_center\nTable_subhead_center_0\nTable_subhead_center_1", "Maiden, NC_3\nNewark, CA_2\nPrineville, OR_2", "146_0\n0_61\n0_62", "146_1\n0_63\n0_64", "52,977\n33,492\n1263", "0_65\n7664_0\n0_66", "Table_data_semibold__216\nTable_data_semibold__217\nTable_data_semibold__218", "— Data not tracked\n¹Includes energy used at distribution centers, beginning in FY2016.\n³For ease of accounting, we calculate our progress toward 100 percent renewable energy on a calendar year basis, while we track and report all other environmental impacts on a fiscal year basis. In calendar year 2016, 96 percent of the 1,572 million kWh electricity we used came from renewable sources.", "*In calendar year 2016.\n¹We calculate “default utility emissions” to provide baseline emissions of what our carbon footprint would have been without the use of renewable energy. This allows us to demonstrate the savings resulting from our renewable energy program.\n*This value became 100 percent starting January 2016, bringing the total renewable energy figure to 99 percent for calendar year 2016.", "Bureau Veritas: Corporate energy, carbon, waste and water data (Pages 48-50)\nFraunhofer Institute: Product life cycle carbon footprint \n(Pages 51-54)\nFraunhofer Institute: Corporate, retail, and product \nfiber footprint (Pages 55–56)", "Previous generation\n13-inch MacBook Pro\nGreenhouse gas emissions associated with the aluminum enclosure of the 13-inch MacBook Pro with Touch Bar are 48 percent less than the previous generation.", "A durable device is a greener device.\nWe run our own environmental \ntesting lab. \nTo ensure the safety of Apple Watch, we make our own sweat.", "We also work to protect the health and safety of the people who work in our supply chain. The standards we set for our suppliers go far beyond what’s required by law, like our Regulated Substances Specification (RSS) list, which identifies the toxic chemicals we limit or prohibit in our manufacturing processes and products. We lead audits that inventory chemical purchasing and map chemicals across our supply chain. During these audits, we also review our suppliers’ hazard assessments, industrial hygiene monitoring, risk controls, hazard communication, worker training, medical surveillance records, and chemical spill prevention plans. To date, we’ve conducted over 40 hazard assessments for all the chemicals in the cleaners and degreasers used in our final assembly sites. We’ve removed benzene, n-hexane, toluene, and chlorinated organic compounds from all of our final assembly sites, and we continue to work with our suppliers to help them better manage chemicals used in manufacturing processes. And for suppliers with higher-than-average risks of occupational health exposure, we work with them even more closely to assess and improve chemical management practices. \nIn addition to mapping chemical use annually across all final assembly sites, our team of experts works with suppliers to assess their manufacturing process and identify substitutions or opportunities for reenginering wherever possible. We’ve already assessed 81 manufacturing sites, including all 18 of our final assembly sites and \n63 subcomponent supplier sites—together employing approximately 860,000 workers. And we plan to assess 50 more sites in 2017. \nAfter we identify toxins in our products, we reduce them, remove them, or develop new materials that are safer. These efforts also remove toxins from our manufacturing and recycling processes, which protects workers and keeps pollutants out of the land, air, and water.", "Mission statement\nGuiding principles", "Learn more about how Apple is \nintegrating toxicological assessments into our materials selection process. \nLink_1", "Beryllium\nEliminated from all new product designs. Beryllium is found in copper alloys used to make connectors and springs.", "Table_subhead_center_16\nTable_subhead_center_17", "Domestic (U.S.)\nInternational_0", "1597\n2082", "1597_0\n2082_0", "42,050\n55,658", "0_11\n8924_0", "Domestic (U.S.)_0\nInternational_1", "2269_1\n1531", "2269_2\n1531_0", "42,543\n43,527", "0_27\n22,893_0", "Domestic (U.S.)_1\nInternational_2", "2812\n2543", "2812_0\n2543_0", "45,041\n37,729", "11,036\n30,662", "Table_subhead_center_23\nTable_subhead_center_24", "Apple Emissions \n(incl. Renewable Energy)", "Apple Emissions _0\n(incl. Renewable Energy)_0", "Domestic (U.S.)_2\nInternational_3", "3548\n2610", "3548_0\n2610_0", "44,606\n32,819", "44,606_0\n29,397", "Domestic (U.S.)_3\nInternational_4", "787\n2025", "787_0\n2025_0", "Maiden, NC_4\nNewark, CA_3", "0_70\n0_71", "0_72\n0_73", "22,663\n28,988", "0_74\n28,988_0", "Domestic (U.S.)_4\nInternational_5", "746\n1854", "746_0\n1854_0", "Table_subhead_center_30\nTable_subhead_center_31", "Total Gas\n(mmBTU)", "Renewable Biogas\n(mmBTU)_0", "Total Electricity\n(million kWh)", "Renewable Electricity\n(million kWh)_0", "Domestic (U.S.)_5\nInternational_6", "29,994\n39,203", "0_88\n0_89", "99_0\n104", "99_1\n92", "Table_head_7_10_0\nTable_head_7_10_1", "Table_data_left_7_8_7\nTable_data_left_7_8_8", "Table_data_left_7_8_9\nTable_data_left_7_8_10", "Table_data_left_6_8\nTable_data_left_6_8_0", "Table_head_7_10_2\nTable_head_7_10_3", "Table_data_left_7_8_23\nTable_data_left_7_8_24", "Table_data_left_6_8_1\nTable_data_left_6_8_2", "Table_head_7_10_4\nTable_head_7_10_5", "Table_data_left_7_8_33\nTable_data_left_7_8_34", "Table_data_left_7_8_35\nTable_data_left_7_8_36", "Table_data_left_6_8_3\nTable_data_left_6_8_4", "Table_head_7_10_6\nTable_head_7_10_7", "Table_data_left_7_8_41\nTable_data_left_7_8_42", "Table_data_left_7_8_43\nTable_data_left_7_8_44", "Table_data_left_7_8_45\nTable_data_left_7_8_46", "Table_data_left_6_8_5\nTable_data_left_6_8_6", "Table_head_7_10_8\nTable_head_7_10_9", "Table_data_left_6_8_7\nTable_data_left_6_8_8", "Energy Use_0\n(kWh)", "Renewable Energy\n(kWh)_0", "53%_0\nThe 21.5-inch iMac product packaging consumes 53 percent less volume and weighs 35 percent less than packaging for the original 15-inch iMac.", "84%_0\nU.S. product packaging of iPhone 7 \nuses 84 percent less plastic than in the previous-generation iPhone packaging and contains 60 percent recycled content.", "100%_0\nFor the paper used in packaging iPad Pro, 100 percent comes from responsibly managed forests or is made from post-consumer recycled content.", "96%\nOf the electricity that powers our global facilities, 96 percent comes from renewable sources.", "Link_8\ntext_0", "100%_1\nApple data centers are powered by \n100 percent renewable energy.", "100%_2\nWe have protected or created enough responsibly managed forests to cover the 49,000 metric tons of virgin paper we used in our packaging in fiscal year 2016. ", "Product Durability\nBiocompatibility", "100%_3\nAt our 18 final assembly facilities, \n100 percent of all process chemicals were free of Apple-restricted \nsubstances.", "Manufacturing makes up 77 percent of our carbon footprint. Most of \nit is due to carbon emissions from the electricity used to make our \nproducts—over 60 percent of our manufacturing emissions. So we’re sourcing lower-carbon materials, partnering with our suppliers around the world to reduce their current energy use, and helping them switch to renewable energy. We believe that together we can transform the manufacturing process to dramatically reduce emissions.", "Worldwide corporate, data centers, and Apple Stores", "Increase responsible management of working forests in China—by creating up to 300,000 acres of FSC–certified forests, and up to 700,000 acres of forests under improved management.", "Improve China’s policy framework to encourage responsible forest management. ", "Establish long-term market incentives in China for responsibly sourced paper. ", "Climate Change", "How can we lead the fight against \nclimate change?", "Carbon emissions per product (kg)", "We’ve decreased carbon emissions per \nproduct every year since 2011.", "Apple Renew", "Recycle your Apple device at any \nApple Store or request a prepaid shipping label online and send it to us. ", "Link", "Learn more", "All our suppliers must adhere to Our sustainable fiber specification.", "Link_0", "Download now ↓⃝", "Appendix D", "Environmental Health and Safety Policy Statement", "Reduce our impact on climate change by using renewable energy \nsources and driving energy efficiency in our products and facilities. ", "Conserve precious resources so we all can thrive. ", "Pioneer the use of safer materials in our products and processes.", "Environmental Responsibility at Apple", "To ask less of the planet, \nwe’re asking more of ourselves.", "2. Renewable energy", "1. Energy efficiency", "An important first step in managing energy use is to ensure our facilities use as little as possible. That’s why we design them for maximum energy efficiency and regularly audit our facility energy use to identify further opportunities for energy optimization.", "Our renewable energy sourcing principles. ", "Wind", "Water", "Biogas fuel cell", "Resources", "In the future, can we make\nproducts without taking finite\nresources from the earth?\n", "Since our Clean Water Program began, we’ve helped our suppliers save more than 8 billion gallons of water—enough to provide every person on the planet with 18 glasses of water.", "To ensure that they can stand up to repeated use, the keys on MacBook are pressed millions of times.", "Safer Materials", "How do we make sure our products stay \nsafe for people and planet?", "Download the white paper", "Mercury", "Eliminated in 2009. We use energy-efficient, mercury-free LEDs and OLEDs instead of mercury-based fluorescent lamps in all our displays.", "Lead", "Phased out of display glass and \nsolder in 2006.", "Arsenic", "Eliminated from display glass since 2008. Arsenic was traditionally used \nin glass.", "PVC and Phthalates", "Replaced with safer thermoplastic \nelastomers.¹⁰ Both are still used by \nother companies in power cords \nand headphone cables.", "Brominated Flame Retardants (BFRs)", "Eliminated from thousands of parts \nsuch as enclosures, cables, circuit boards, and connectors in 2008. \nWe use safer metal hydroxides and phosphorus compounds in their place. ", "Better Together", "Can we be a ripple in the pond \nto inspire greater change?\n", "Environmental Responsibility Report", "2017 Progress Report, Covering Fiscal Year 2016", "Appendix A", "Apple’s Operations: Environmental Data", "KPI", "Unit", "Fiscal Year", "2016", "2015", "2014", "2013", "2012", "Greenhouse Gas Emissions", "Scope 1", "metric tons \nCO₂e", " 34,320", " 28,100 ", " 28,490 ", " 29,300 ", " 21,220 ", "Natural gas, Diesel, \nPropane²", " 26,954 ", " 19,360³", " 20,710 ", " 22,090 ", " 14,300 ", "Fleet vehicles", " 7370 ", " 8740 ", " 7780 ", " 7210 ", " 6920 ", "Scope 2⁴", " 41,600 ", " 42,460 ", " 63,210 ", " 91,510 ", " 139,160 ", "Scope 3⁵", " 303,910 ", " 312,910 ", " 259,130 ", " 225,630 ", " 202,060 ", "Business travel", " 117,550 ", " 139,940⁶ ", " 110,940 ", " 90,948 ", " 85,090 ", "Employee commute", " 186,360 ", " 172,970 ", " 148,190 ", " 134,685 ", " 116,970 ", "Total Facilities Emissions (Scopes 1, 2, 3)", " 379,830 ", " 383,470", " 350,830 ", " 346,440 ", " 362,440 ", "Energy Use", "Electricity", "million kWh", " 1450 ", " 996 ", " 839 ", " 708 ", "608", "U.S.", " 1170 ", " 831 ", " 702 ", "590", "International", " 280 ", " 166 ", " 137 ", "118", "Natural gas", "million btu", " 974,570 ", " 851,660 ", " 922,860 ", " 764,550 ", " 304,000 ", "U.S.", " 901,950 ", " 794,830 ", "840,490", "676,630", "240,230", "International", " 72,620 ", " 56,830 ", "82,370", "87,920", "63,770", "Energy \nEfficiency⁷", "Electricity saved as a result of energy efficiency measures (cumulative since 2011)", "kWh", " 55,288,800 ", "37,875,000", "31,225,000", "26,241,600 ", "11,354,200 ", "Natural gas saved as a result of energy efficiency measures (cumulative since 2011)", "million \nbtu ", " 4,448,300", "2,706,900", "2,041,900", "1,543,600", "54,900", "Renewable \nEnergy⁸", "Renewable energy sourcing (calendar year)", " 96 ", " 93 ", " 87 ", " 73 ", " 60 ", "Emissions avoided as a \nresult of renewable energy sourcing (scopes 1 and 2)", "metric tons CO₂e", "585,000", "362,000", " 283,000 ", " 214,000 ", " 118,000 ", "Water Use", "Total", "million \ngallons", "630", "573", "494 ", "430 ", "345 ", "Data centers", "207", "166", " 113 ", " 69 ", " 57 ", "Retail", "99", "111", " 103 ", " 94 ", " 71 ", "Corporate", "324", "296", " 278 ", " 267 ", " 217 ", "Waste \nGeneration", "Landfilled", "pounds", " 21,618,850 ", " 13,110,880 ", " 6,833,000 ", " 5,923,810 ", " 4,850,160 ", "Recycled ", " 28,198,560 ", " 19,599,570 ", " 14,621,940 ", " 15,866,650 ", " 11,464,020 ", "Composted", " 13,737,320 ", " 3,006,170⁹ ", "—⁹", "Hazardous waste", " 2,287,320 ", " 1,002,300 ", " 508,040 ", " 70,550 ", " 123,460 ", "Landfill diversion rate", "66", "63", "68", "73", "70", "Facilities Environmental Key \nPerformance Indicators ", "The following table summarizes key environmental performance\nindicators relating to Apple’s global facilities, including our data \ncenters, corporate offices, and almost 490 Apple Stores, together \noccupied by 116,000 Apple employees.¹\t", "Scopes 1 and 2 Building Carbon \nEmissions (metric tons CO₂e)", "Table_head_7_10", "Fiscal Year 2016", "Scope 1¹", "Scope 2²", "Location", "Default Utility Emissions³", "Apple Emissions\n(incl. Renewable Energy)", "Default Utility Emissions³", "Apple Emissions \n(incl. Renewable Energy)", "Corporate", "22,109", "20,537", "166,990", "30,408", "Data centers", "28,731", "2738", "334,824", "2269", "Retail stores", "3679", "3679", "97,708", "8924", "Totals", "54,519", "26,954", "599,522", "41,601", "Table_head_8_10", "Fiscal Year 2015", "Corporate", "16,960", "15,423", "106,134", "19,564", "Data centers", "24,543", "136", "186,586", "0", "Retail stores", "3800", "3800", "86,070", "22,893", "Totals", "45,303", "19,359", "378,790", "42,457", "Table_head_8_10_0", "Fiscal Year 2014", "Corporate", "16,716", "15,335", "86,842", "21,555", "Data centers", "26,854", "18", "148,320", "0", "Retail stores", "5355", "5355", "82,770", "41,658", "Totals", "48,924", "20,708", "317,932", "63,213", "Table_head_8_10_1", "Fiscal Year 2013", "Scope 1¹", "Scope 2²", "Location", "Default Utility Emissions³", "Default Utility Emissions³", "Corporate", "15,211", "13,727", "85,354", "17,503", "Data centers", "19,360", "2201", "123,855", "0", "Retail stores", "6158", "6158", "77,425", "74,002", "Totals", "40,729", "22,086", "286,634", "91,505", "Table_head_8_10_2", "Fiscal Year 2012", "Corporate", "13,160", "15,423", "84,611", "48,215", "Data centers", "146", "46", "87,732", "7664", "Retail stores", "2812", "2812", "83,285", "83,285", "Totals", "16,118", "14,301", "255,628", "139,164", "Table_head_8_10_3", "Fiscal Year 2011", "Corporate", "14,425", "12,656", "82,183", "59,516", "Data centers", "0", "0", "51,651", "28,988", "Retail stores", "2600", "2600", "65,769", "65,769", "Totals", "17,025", "15,256", "199,603", "154,273", "Notes: \t", "Fiscal Year 2016 Natural Gas and \nElectricity Use", "The chart below provides a detailed breakdown of fiscal year 2016 energy use, which is used to calculate our carbon emissions.", "Table_head_8_10_4", "Fiscal Year 2016", "Natural Gas", "Electricity", "Location", "Corporate", "414,003", "29,712", "473", "419", "Data centers", "491,378", "491,159", "778", "775", "Retail stores", "69,197", "0", "203", "191", "Totals", "974,577", "520,871", "1454", "1385", "Percent Renewable³", "53%", "95%", "²In FY2016, we began tracking electricity used at colocation facilities as part of Apple’s footprint.", "Appendix B ", "Data Center Energy Supplement", "Table_head_8_10_5", "Newark, California—100% renewable since opening January 2013", "Pacific Gas amp; Electric Default Grid Mix", "Apple Actual Renewable Energy Use", "Natural Gas", "25%", "Bundled Grid (mostly wind)", "84%", "Nuclear", "23%", "Grid (mostly wind)", "16%", "Other/Unspecified", "22%", "Renewable", "30%", "2016 Default Emissions\n(mtons CO₂e/year)", "24,993", "2016 Effective Emissions\n(mtons CO₂e/year)", "0", "Link_2", "https://www.pge.com/pge_global/common/pdfs/your-\naccount/your-bill/understand-your-bill/bill-inserts/\n2016/11.16_PowerContent.pdf", "Actual fiscal year 2016 energy data", "Table_head_8_10_6", "Prineville, Oregon—100% renewable since opening May 2012", "Pacific Power Default Grid Mix", "Apple Actual Renewable Energy Use", "Coal", "62%", "Apple’s Micro-Hydro Projects", "5%", "Natural Gas", "17%", "Oregon Wind", "94%", "Other", "6%", "Utility Green", "1%", "Renewable", "15%", "2016 Default Emissions\n(mtons CO₂e/year)", "83,912", "2016 Effective Emissions\n(mtons CO₂e/year)", "0", "Link_3", "https://www.pacificpower.net/content/dam/pacific_\npower/doc/About_Us/Rates_Regulation/Oregon/11536-9_PP_ORLabelingInsert_LrgBiz_F.pdf", "Actual fiscal year 2016 energy data", "Table_head_8_10_7", "Reno Nevada—100% renewable since opening December 2012", "NV Energy – North Default Grid Mix", "Apple Actual Renewable Energy Use", "Natural Gas", "52%", "Apple’s Solar PV Projects", "53%", "Coal", "22%", "Other Solar PV (PPA)", "47%", "Other", "3%", "Renewable", "23%", "2016 Default Emissions\n(mtons CO₂e/year)", "31,222", "2016 Effective Emissions\n(mtons CO₂e/year)", "0", "Link_4", "https://www.nvenergy.com/bill_inserts/2017/Power_\nContent_Insert_NVE-North_2017-01.pdf", "Actual fiscal year 2016 energy data", "Table_head_8_10_8", "Mesa Arizona—100% renewable since opening March 2017*", "Salt River Project (SRP) Default Grid Mix", "Apple Actual Renewable Energy Use", "Coal", "53%", "SRP Solar PV Purchase", "100%", "Nuclear", "18%", "Natural Gas/Other", "17%", "Renewable", "12%", "2016 Default Emissions\n(mtons CO₂e/year)", "7601", "2016 Effective Emissions\n(mtons CO₂e/year)", "0", "Link_5", "https://www.srpnet.com/about/stations/pdfx/2014irp.pdf", "Actual fiscal year 2016 energy data", "www.eia.gov/electricity/sales_revenue_price/pdf/table5_a.pdf", "*Carbon emissions equivalences calculated using U.S. Energy Information Administration, 2015 data: \n\n", "Table_head_8_10_9", "Maiden, North Carolina—100% renewable since opening June 2010", "Duke Energy Default Grid Mix", "Apple Actual Renewable Energy Use", "Nuclear", "51%", "Apple’s Solar PV Projects", "36%", "Coal", "33%", "Biogas Fuel Cells", "28%", "Other", "16%", "Duke Green Source Rider \n(100% Solar PV)", "8%", "Renewable", "lt;1%", "NC GreenPower (80% solar)", "36%", "2016 Default Emissions\n(mtons CO₂e/year)", "103,296", "2016 Effective Emissions\n(mtons CO₂e/year)", "0", "From Duke Energy Carolinas 2015 Statistical Supplement generation data", "Actual fiscal year 2016 energy data", "Our data center in Newark, California, is powered by 100 percent \nrenewable energy. We hit this milestone in January 2013, when we began serving the data center with energy sourced primarily from California wind power. We’re acquiring this energy directly from the wholesale market through California’s Direct Access program. Late in 2017, when we anticipate the 130-megawatt California Flats solar project in Monterey County, California, to come online, we’ll use Direct Access to supply power from that project directly to our data center as well as other Apple facilities in California.", "*Apple took operational control of the building in October 2015 and converted it to a data center that began servicing customers in \nMarch 2017.", "Energy Use (kWh)", "Renewable Energy (kWh)", "Default Utility \nEmissions¹ \n(metric tons CO₂e)", "Apple’s Emissions -\nincluding renewable energy²\n(metric tons CO₂e)", "% \nRenewable\nEnergy", "FY2011", "42,524", "0", "12", "12", "0%", "FY2012", "38,552,271", "1,471,680", "17,220", "16,543", "4%", "FY2013", "79,462,860", "46,966,891", "31,757", "14,493", "59%", "FY2014", "108,659,693", "88,553,380", "44,338", "10,976", "81%", "FY2015", "142,615,026", "121,086,061", "60,495", "12,740", "85%", "FY2016³", "180,205,500", "176,774,556", "83,800", "2269", "98%", "%\nRenewable Energy", "U.S.", "127,286,720", "127,286,720", "100%", "Europe", "27,576,768", "27,576,768", "100%", "APAC", "24,750,670", "21,906,038", "89%*", "Other", "591,342", "0", "0%", "FY2016 Total", "180,205,500", "176,769,526", "98%", "Appendix C", "Assurance and Review Statements", "Geothermal", "Solar", "An increasing number of suppliers \nhave committed to using only renewable energy to produce Apple parts and products.", "Link_7", "Download Supplier Update ↓⃝Liam is a line of robots that \ndisassembles iPhone 6 into \nindividual components, making \nit easier to recover finite \nresources such as aluminum, tungsten, and cobalt.We’re planting more than 9000 drought-resistant trees at our new campus in Cupertino. We selected many tree \nvarieties that were native to the area \nas well as others that could thrive in \na range of climate change scenarios. An aerial view of eucalyptus forests in Guangxi Province, China. In partnership with WWF, we have transitioned approximately 320,000 acres of forest in China into sustainable management.In an incubator that simulates the \ntemperature of the human body, \nApple Watch bands are placed in \njars of artificial sweat to undergo \nanalytical testing.A10iPhone 7 uses the A10 Fusion chip, which is the most powerful chip ever in a smartphone, and it’s extremely efficient.97%iMac consumes 97 percent less energy \nin sleep mode than the first generation.7xMac mini exceeds ENERGY STAR requirements by up to seven times.⁶We are now protecting and creating enough sustainably managed forests in China\nand the United States to cover all of Apple’s product packaging needs.Our 4 gigawatts of renewable energy projects by 2020 will produce clean power equivalent to taking more than 1.5 million cars off the road every year for over 20 years.³Ibiden’s floating solar project in \nJapan will help it reach its 100 percent \nrenewable energy goal for Apple by\nthe end of 2018.Apple Park is populated by over 9000 trees, including more than 7000 newly planted shade and fruit trees.95 percent of the material from \nthe demolished buildings at the site \nwas recycled or reused in the new Apple campus.Learn more about Liam, Apple’s \nexperiment in disassembly technology.Download the white paper ↓⃝In February 2017, we issued our \nfirst Green Bond report, covering\nfiscal year 2016. Download now ↓⃝All our suppliers have to adhere to our Regulated Substances Specification. Download now ↓⃝", "Our work is led by Lisa Jackson, Apple’s Vice President of Environment, Policy and Social Initiatives, reporting directly to CEO Tim Cook. The Office of Environment, Policy and Social Initiatives works with teams across Apple to set strategy, engage stakeholders, and communicate progress. Our integrated approach means that decisions about Apple values, including environment, are reviewed and supported at the highest levels of the company. ", "here", "Click \n", "Top contributors to our \nmanufacturing carbon footprint", "35%\tIntegrated Circuits\n29%\tAluminum\n13% \tBoards and Flexes¹\n5%\tDisplay\n4% \tGlass", "Partners committed to \n100 percent renewable energy \nfor Apple production by 2018", "In just six years, Apple’s use of renewable energy to power its corporate facilities, retail stores, and data centers worldwide went from 16 percent in 2010 to 96 percent in 2016.", "We worked with Sunseap to source \n100 percent clean energy in Singapore from a first-of-its-kind project: roughly 32 megawatts of solar panels on more than 800 rooftops in the city. ", "Default grid emissions\nTotal emissions if Apple \nhad no renewable program", "Apple emissions\nEmissions after accounting for Apple’s renewable \nenergy program", "Transportation emissions", "Transportation emissions\nper employee", "Product energy use (kWh/yr)", "We continue to reduce the average energy our products use compared with previous generations.", "For every 100,000 iPhone 6 devices, Liam has the potential to recover the following \nmaterials:", "Aluminum (1900 kg)\nCopper (800 kg)\nGold (0.3 kg)\nPlatinum Group Metals (0.4 kg)\nSilver (7 kg)\nTin (55 kg)\nRare Earth Elements (24 kg)\nCobalt (550 kg)\nTungsten (3.5 kg)\nTantalum (2.5 kg)", "Landfill diversion rate for \noffice waste", "Waste, recycling, and compost data \nis collected or estimated for all Apple \nfacilities, including our retail stores.", "We calculate our corporate water use for our data centers, retail stores, and \ncorporate offices.", "How we think about water.", "The impact of water use varies significantly depending on the watershed conditions where the water is being used. So we’ve continued to look at more sophisticated ways to measure and analyze our water use. The way we manage water is different based on the climate and nature of our operations across our facilities, whether it’s our data centers, corporate offices, manufacturing sites, or retail stores. We map our global water use against scarcity indicators. This analysis helps us prioritize our conservation efforts across our operations.", "Corporate water use by level of risk (FY2016)", "We mapped our water use to different levels of water risk (as defined by WRI’s Aqueduct tool) across the world to understand where we should be focusing our conservation efforts. Water risk takes into consideration indicators such as water scarcity, business risk, and habitat and livelihood impact to the basins in which we operate.", "Source: World Resources Institute (WRI) Aqueduct, www.wri.org/our-work/project/aqueduct", "© Theodore Kaye/WWF-China", "Our scientists have cataloged and analyzed more than \n20,000 individual parts.", "Setting high standards for the safety of our products. \nAnd the people who help make them. ", "Eliminating Toxins", "The worst toxins and what we’ve done about them.", "For 2016, Apple increased our focus on inspiring others, influencing \npublic policy, and contributing to improving global outcomes beyond \nthe borders of our business interests. We deepened our engagement \nwith key organizations, shared our vision and our journey at important conferences and events, collaborated with peer organizations, supported legislative efforts through advocacy, and found new ways to engage with our customers on the importance of protecting our planet.", "For 10 days in April 2016, Apple and 24 developers worked together to launch Apps for Earth, a global campaign to \nbenefit WWF and help the planet, one \napp at a time.", "section_heads_center_4", "Our renewable energy strategy", "captions_in_box_45" ]

[ "H6_2\nP_4\nP_5\nP_6\nP_7", "TH_158\nTH_159\nTD_172\nTH_160\nTD_173\nTH_161\nTD_174\nTH_162\nTD_175", "TR_5", "TH_24\nTH_25\nTH_26\nTD_38\nTH_27\nTD_39\nTH_28\nTD_40\nTH_29\nTD_41\nTH_30\nTD_42\nTH_31\nTD_43", "H5_0\nP_25\nSect_9\nP_28", "TR_1\nTR_2", "Apple Trade In \nTrade in your device for credit toward a new one, or recycle it responsibly for free. \n\n See how it works gt;\nIn spring 2019, we are launching a program with Best Buy in the U.S. and KPN in the Netherlands so that eligible iPhones will be sent to our disassembly robot Daisy. \nTrade it in. Help the planet out. \nEven when you’re done with your device, chances are it still has more to give to the world. Apple Trade In is a simple way to exchange your old device for credit so that it can be reused by a new owner. If it isn’t eligible for credit, we’ll recycle it free of charge.20 Either way, your trade-in helps reduce the amount of materials that need to be mined from the Earth. That’s a trade-off that works for everybody. \nRefurbishing for a new life. \nOur devices are built to last. That’s why they often go on to a second or even third user. Through Apple Trade In, customers in 27 countries can trade in their devices either online or in-store. For products that still have more to give, customers can receive an Apple Store Gift Card or a refund on their purchase. These devices are repaired when necessary and sent to their next owner. If a product is at the end of its life, we’ll recycle it for free. We also collect and refurbish used devices through our iPhone Upgrade Program, AppleCare, and, inside Apple, our Hardware Reuse Program for employees. Altogether, we directed 7,860,000 devices to new users in fiscal year 2018. Keeping these devices in use rather than needing to make new products to serve those customers resulted in tangible material and carbon emissions savings. \nRecycling for material recovery. \nAfter sourcing responsibly and creating long-lasting products, we focus next on recovering materials. We participate in and offer product collection and recycling programs in \n 99 percent of the countries\nTo truly end our reliance on mining, we also need to better capture the materials inside the products we recover. We created our disassembly robot, Daisy, to remove and sort components, so we can recover more materials at a higher quality than traditional recyclers can. This year, we updated Daisy to disassemble six additional iPhone models—15 models in total—from iPhone 5 to iPhone XS. Even while identifying models in real-time and disassembling devices with greater variation, Daisy can take apart 200 iPhone devices per hour. In the U.S. and the Netherlands, Daisy is now processing end-of-life iPhone models returned to us through Apple Trade In and AppleCare. \nSome of the recovered materials are already heading back into our supply chain for new products. Most of the aluminum recovered from iPhone, for example, became part of the 100 percent recycled aluminum enclosure of MacBook Air. And cobalt we recovered from the iPhone battery is used to make new Apple batteries. Because of our efforts to keep harmful substances out of our products, these materials are safer to recover and reuse. \nFor some materials, however, efficient recycling technologies don’t exist. We don’t believe technology should be a barrier to conserving the Earth’s resources. That’s why we created our new Material Recovery Lab in Texas. The lab will focus on three key areas: optimizing existing recycling practices, improving the ability to disassemble devices, and advancing research and development of the next generation of recycling technologies. We aim to benefit the broader recycling industry through this research. After all, the more material that gets reused, the less that needs to be mined from the Earth. \nL_24\ntext_20", "H6\nL\nP_1\nH6_0\nP_2\nH6_1\nP_3", "TR_6", "TH_32\nTH_33\nTH_34\nTD_44\nTH_35\nTD_45\nTH_36\nTH_37\nTD_46\nTH_38\nTH_39\nTD_47\nTH_40\nTD_48", "TR_7", "TH_41\nTH_42\nTH_43\nTD_49\nTH_44\nTD_50\nTH_45\nTH_46\nTD_51\nTH_47\nTH_48\nTD_52\nTH_49\nTD_53", "Appendix D \nEnvironmental Health and Safety Policy Statement \nMission Statement \nApple Inc. is committed to protecting the environment, health, and safety of our employees, customers, and the global communities where we operate. \nWe recognize that by integrating sound environmental, health, and safety management practices into all aspects of our business, we can offer technologically innovative products and services while conserving and enhancing resources for future generations. \nApple strives for continuous improvement in our environmental, health and safety management systems and in the environmental quality of our products, processes, and services. \nGuiding Principles \nMeet or exceed all applicable environmental, health and safety requirements. We will evaluate our EHS performance by monitoring ongoing performance results and through periodic management reviews. \nWhere laws and regulations do not provide adequate controls, we will adopt our own standards to protect human health and the environment. \nSupport and promote sound scientific principles and fiscally responsible public policy that enhance environmental quality, health and safety. \nAdvocate the adoption of prudent environmental, health and safety principles and practices by our contractors, vendors, and suppliers. \nCommunicate environmental, health, and safety policies and programs to Apple employees and stakeholders. \nDesign, manage and operate our facilities to maximize safety, promote energy efficiency, and protect the environment. \nStrive to create products that are safe in their intended use, conserve energy and materials, and prevent pollution throughout the product life cycle including design, manufacture, use, and end-of-life management. \nEnsure that all employees are aware of their role and responsibility to fulfill and sustain Apple’s environmental, health and safety management systems and policy. \nLuca Maestri Senior Vice President and CFO January 2019 ", "TH_164\nTD_191\nTD_192\nTD_193", "TR_19", "TH_165\nTH_166\nTD_194\nTH_167\nTD_195\nTH_168\nTD_196\nTH_169\nTD_197\nTH_170\nTD_198\nTD_199", "H5_1\nP_31\nSect_12\nP_33\nSect_13", "Paving the way for carbon-free aluminum smelting \nLowering impact by design. \nOur carbon footprint tells us which components are carbon intensive, so we know where to focus our efforts. We reduce the amount of material we need to make certain components by changing the design and re-engineering manufacturing processes. And by sourcing from recycled or renewable materials, we can often further decrease the carbon emissions from certain components. \nIntegrated circuits, or chips, make up a large portion of our manufacturing carbon footprint. Turning a silicon wafer into an integrated circuit is an energy-intensive process. So we seek out ways to reduce the amount of silicon used in chips, while maximizing their performance. The A11 and A12 chips used in iPhone 8, X, XS, XS Max, and XR allow more processing power to be packed into smaller silicon dies, which reduced Apple’s 2018 carbon footprint by 160,000 metric tons. \nThe carbon footprint of aluminum enclosures of MacBook computers has been steadily decreasing since 2015—for some products, it’s over six times less. We’ve done this by sourcing aluminum from hydro-powered smelters, improving the material efficiency of manufacturing processes, and increasing recycled content in our products. And by using 100 percent recycled aluminum for the enclosure of the new MacBook Air with Retina display, we cut the product’s carbon footprint in half. \nAluminum is a key material in many of Apple’s products, and, for more than 130 years, it’s been produced through a carbon-intensive process. Through a partnership with aluminum manufacturers Alcoa Corporation and Rio Tinto Aluminum, announced in May 2018, that’s changing. The joint venture between Alcoa and Rio Tinto will commercialize patented technology that eliminates direct greenhouse gas emissions from the traditional smelting process, a key step in aluminum production. This is a revolutionary advancement in the manufacturing of one of the world’s most widely used metals. \nAs part of Apple’s commitment to reducing the environmental impact of its products through innovation, the company helped accelerate the development of this technology. And Apple has partnered with both aluminum companies, and the governments of Canada and Quebec, to collectively invest a combined $144 million to future research and development. \n“Apple is committed to advancing technologies that are \ngood for the planet and help protect it for generations \nto come. We are proud to be part of this ambitious new \nproject, and look forward to one day being able to use \naluminum produced without direct greenhouse gas \nemissions in the manufacturing of our products.” \nTim Cook \nApple’s CEO ", "TR_8", "TH_50\nTH_51\nTH_52\nTD_54\nTH_53\nTD_55\nTH_54\nTH_55\nTD_56\nTH_56\nTD_57\nTH_57\nTD_58", "H5\nP_19\nSect_6\nSect_7\nP_24", "H6_7\nP_26\nP_27", "40 \nApple’s carbon footprint (million metric tons CO2e) \n30 \n20 \n10 \n0 \n140 \n70 \n0 _0\n2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Fiscal year \nAnnual revenue (billion $) \nSince 2015, Apple’s emissions reduction efforts have led to a significant decline in its comprehensive carbon footprint. Without these efforts, Apple’s fiscal year 2018 emissions would have been 35 percent greater. \nNote: We have been calculating the life cycle greenhouse gas emissions of our products since 2007. Over time, we have greatly refined our model to include more Apple-specific data instead of industry averages. We made significant modeling changes in fiscal year 2016 to improve how we calculate emissions from the integrated circuits in Apple products, which resulted in a decrease in manufacturing emissions. And we make systematic changes each year to reflect changes in global electricity grids. ", "LI_21\nL_22", "Lisa Jackson speaks at the annual meeting of the American Geophysical Union about the role of the private sector in spurring smart, innovative environmental action. At Apple, we believe that telling the story of our vision and our progress can inspire others to join our efforts. \nCollaborating for joint success. \nWe’ve continued to work with cross-sector companies, researchers, suppliers, technical experts, and customers to forge new paths, build unique solutions, and inspire others to continue their efforts. \nAcademic partnerships. \nWe are building relationships with key academic institutions worldwide—like Tsinghua University’s School of Economics and Management in Beijing, where we are funding a $3 million endowed chair professorship based on Responsible Innovation. We also collaborated with Tsinghua University’s School of Public Policy and Management on its Summer Institute for China’s Green Innovators (SICGI) program. In the past three years, 112 students from 50 universities joined the program to identify creative policy solutions to environmental challenges through course training and internships with local environment agencies. \nTo support our Smarter Chemistry work, in 2015, we formed a Green Chemistry Advisory Board, made up of some of the world’s leading toxicologists, researchers, and academics. The board helps us explore innovative ways to minimize or eliminate toxins from our supply chain and to incorporate the latest breakthroughs in green chemistry into our products and processes. \nCustomer engagement. \nWe seek to engage customers in our environmental mission, giving them opportunities to join in our efforts. In the past three years, we have launched two customer-facing campaigns: Apps for Earth; and communications around the benefits of returning devices to Apple for trade-in or recycling. \nApps for Earth was a 2016 partnership with app developers and customers that generated over $8 million to support World Wildlife Fund’s global environmental projects. As of November 2018, World Wildlife Fund has fully invested the funds raised in conservation projects spanning all seven continents. These projects have helped protect wildlife through improved tracking, increase access to freshwater in vulnerable communities, promote sustainable food production and consumption, improve community management of forests, use technology to advance ocean conservation, and build resilience in ecosystems threatened by climate change. \nFor every device received through Apple Trade In during a two-week period around Earth Day 2018, Apple made a donation to Conservation International. We then partnered with the nonprofit to use the funds to protect and restore a 27,000-acre mangrove forest in Colombia, which is expected to sequester 1 million metric tons of CO2 over the project’s lifetime. These mangroves not only protect the coasts and help support the livelihood of those communities where they grow, they can also store up to 10 times more carbon than forests on land. This is because mangroves store significant amounts of “blue” carbon in the soil below the water line, in addition to storing carbon in their roots, leaves, and branches like other trees. Our project with Conservation International was the first to fully value the entire ecosystem— trees and soil—for its climate mitigation value. We hope this effort will encourage the protection of threatened mangrove ecosystems globally as important resources in the fight against climate change. \nWe also donated to the SEE Foundation in China with funds raised from the Earth Day campaign. With this contribution, SEE Foundation supported 20 grassroots NGOs in China focused on enhancing waste management and pollution control. SEE also facilitated cross-industry collaboration such as introducing Zero Waste concepts to the outdoor sports industry. \nStakeholder roundtables. \nOver the past several years, we have invited key stakeholders to participate in roundtables in Europe, the United States, and China to obtain feedback on Apple’s key environmental programs, like our work on Smarter Chemistry and our ambition to create a circular supply chain for the materials in our products. Attendees at these roundtables have included a range of academics, NGOs, industry leaders, and other companies. Since these meetings, we have collaborated with subject-matter experts, think tanks, NGOs, and consulting firms to support our work. ", "\n Introduction Climate Change Resources Smarter Chemistry Better Together\n\n Introduction Climate Change Resources Smarter Chemistry Better Together_0\nOur ambition: to make products without taking from the Earth. \nWater stewardship \nReduce freshwater use, improve the quality of water we discharge, and demonstrate leadership by protecting shared water resources \nZero waste \nEliminate waste sent to landfill at manufacturing facilities as well as corporate offices, data centers, and retail stores \n\n Introduction Climate Change Resources Smarter Chemistry Better Together_1\n2018 Highlights \n\n Introduction Climate Change Resources Smarter Chemistry Better Together_2\nApple is investing in 485 megawatts of renewable energy projects in China to address upstream supply chain emissions. \nClimate Change ", "Resources _0\nWe’re on a mission to one day use only recycled and renewable materials in our products and packaging, and to eventually eliminate our reliance on mining altogether.16 We’re reducing the amount of water we use and waste we produce to make our products. And after our devices have enjoyed long lives, we look to them as a resource for the future. \nHighlights \nDaisy expansion Plastic reduction \nWe updated Daisy to disassemble We reduced plastic use in our six more models of iPhone for packaging by 48% in three years. a total of 15. \nRecycled cobalt \nWe’re starting to use recycled cobalt—sourced from iPhone batteries recovered from Daisy and scrap from select supplier sites—in the batteries of new products. \nRecycled aluminum \nWe launched our 2018 MacBook Air and Mac mini with 100% recycled aluminum enclosures, cutting the carbon footprint of each product nearly in half. \nRecycled plastic Product take-back \nWe introduced 82 components with an We refurbished more than 7.8 million average of 38% recycled plastic across devices and recycled more than products released just this year. 48,000 metric tons of e-waste \nthis year. ", "1million metric tons \nThrough our supplier Zero Waste Program, we’ve diverted enough waste to cover more than 4,000 soccer fields 1 meter deep. \nA zero waste program for our suppliers. \nIn 2015, we launched a Zero Waste Program for suppliers, which provides them with onsite support to recycle and reuse materials. The aim is to divert 100 percent of waste from landfills. We provide tools and guidance, including the services of experts in sustainable waste management. \nInitially we prioritized suppliers with the most significant waste impact: final assembly facilities where components from all over the world come together to be assembled into Apple products. Our goal was to help these facilities drastically reduce the waste they send to landfill. And in 2018, we achieved UL’s Zero Waste to Landfill certification for all final assembly facilities across iPhone, iPad, Mac, Apple Watch, AirPods, and HomePod.25 This includes the Apple-operated final assembly site in Cork, Ireland, which was the first Apple facility to receive the designation from UL. \nWe’ve since expanded our efforts further upstream in our supply chain to include sub-assembly suppliers. However, the deeper we go, the more complex the waste streams become. So we are looking for new technological innovations, exploring up-cycling techniques to reuse by-products, and even reassessing manufacturing processes. \nIn 2018, we diverted 375,000 metric tons of waste from landfills. And to date, we’ve engaged 90 suppliers and diverted more than 1 million metric tons of waste—enough to cover more than 4,000 soccer fields a meter deep. \nWater Stewardship _0\nProtecting Earth’s most precious resource. \nWater supports all life on Earth. And while water itself is plentiful, only a small fraction is available to those who need it. The scarcity of freshwater continues to increase, a trend exacerbated by climate change. So we hold ourselves accountable for the water we use, whether at our corporate offices, data centers, distribution centers, and retail stores, or at our suppliers’ facilities around the globe. \nHow we’re tackling our water footprint. \nWater is necessary to operate our corporate facilities, including for cooling at our data centers. At our manufacturing facilities, suppliers use water for processes like etching, cutting, cleaning, and cooling. So we work to conserve it and be smarter about the water we do use. We focus both on improving water use in our facilities and—through our Clean Water Program—helping our suppliers conserve water and prevent water pollution. And we are engaging communities where we operate and manufacture products to make sure shared water resources are protected and accessible. We’re proud of the progress we’ve made, but we know there’s still work to do. ", "Solar _1\nMesa, Arizona \nOur global command data center in Mesa, Arizona, came online in 2016. To support this facility, we partnered with the local utility, the Salt River Project, to build the 50-megawatt Bonnybrooke solar project, which became operational in December 2016. This project produces over 147 million kWh of clean, renewable energy a year, which more than fully matches the energy used by the data center. \nIn fiscal year 2018, the Mesa data center was supported by 104 million kWh of renewable energy, which is equivalent to the energy used by 8,390 Arizona homes.2 \n* Apple took operational control of the building in October 2015 and converted it to a data center that began servicing customers in March 2017. \nDenmark \nWe’re currently constructing a new data center in Viborg, Denmark. It will run on 100 percent renewable energy. In fiscal year 2018, the construction process used 3.5 million kWh of electricity that was supplied with 100 percent wind power from a local retailer in Denmark that only supplies renewable energy. We have long-term supply contracts with Denmark wind and solar projects that will come online by 2020. The solar project, at 42 megawatts, will be one of Denmark’s largest. \nDue to its proximity to one of Denmark’s largest electrical substations, the data center won’t require backup generators, which typically run on diesel and require periodic testing and burning of fuel. \nWe’re working with Aarhus University, Foulum campus, which is conducting important research to increase the production of anaerobic digesters. We are co-developing a project using agricultural waste biomass, which has long been used in Denmark to generate energy. \nChina \nWe have two new data centers in development in China, one in Guizhou Province, the other in Inner Mongolia. Both will be supplied with 100 percent renewable energy. \n2 Carbon emissions equivalences calculated using U.S. Energy Information Administration, 2017 data: \n https://www.eia.gov/electricity/sales_revenue_price/pdf/table5_a.pdf_2", "Since 2011, Apple has reduced emissions from our offices, data centers, retail stores, and fleet vehicles by 64 percent—even while our energy use increased by more than 3 times in this same period. \n800,000 \n2.8million \ncumulative savings \n600,000 \n400,000 \n200,000 \nMetric tons CO2e \nL_4\ntext_3", "lion \nApple recently launched the China Clean Energy Fund, a first-of-its-kind investment fund in China to connect suppliers with renewable energy sources. Initially, 10 suppliers and Apple will jointly invest nearly $300 million over the next four years. \nLeading suppliers to switch to renewable energy. \nApple also takes responsibility for the carbon emissions that occur in our supply chain. Manufacturing makes up 74 percent of our carbon footprint. Most of those emissions come from the electricity used to make the parts in our products. So we’re helping our suppliers reduce their energy use and transition to new renewable energy sources. \nWe announced Apple’s Supplier Clean Energy Program in 2015, and we’ve seen enormous growth in just three years. In 2018, Apple and our suppliers invested in, or procured from, 1.9 gigawatts of operational clean energy that collectively generated 4.1 billion kWh. This clean energy generation avoided about 3.5 million metric tons of CO₂e—roughly equivalent to the electricity needed to power over 600,000 homes in the U.S. for a year.14 \nProgress toward 4 gigawatts \nApril 2017 \nApril 2018 \nApril 2019 \n0123456 \nTo ensure our program achieves the greatest positive impact, we have stringent social and environmental standards for supplier clean energy projects. The data above reflects only those projects that meet our strict standards and includes only clean energy generated or sourced since Apple’s engagement. ", "Low-Carbon Design \nLowering emissions through product design. \nWe design our products with great care to reduce their carbon footprint. We think about how to make them powerful while using as little energy as possible. We use materials efficiently, and we source from materials that have a low-carbon profile. \nDesigning our products to use less energy. \nEnergy efficient products not only maximize battery life, but they’re better for the environment, too. We establish aggressive efficiency targets early in the design phase, and we consistently outperform ENERGY STAR, which sets the standard across commercial products in the U.S. In the last 10 years, we’ve decreased average product energy use by 70 percent across all Apple’s major product lines.4 For example, the 11-inch iPad Pro introduced in fall 2018 is 69 percent more efficient than the ENERGY STAR standard. MacBook Air with Retina display consumes three times less power in sleep mode than the previous-generation MacBook Air. When you multiply these reductions by all the Apple devices in the world, the impact on our carbon footprint really adds up. \n69% \nThe 11-inch iPad Pro models are more than 69 percent more efficient than the ENERGY STAR standard. \n40% \niMac Pro consumes 40 percent less power during sleep and off mode—the result of an innovation in power supply design.15 \n3X \nMacBook Air with Retina display consumes three times less power in sleep than the previous-generation MacBook Air. ", "8 million sq. ft. \nIn fiscal year 2018, we implemented energy efficiency measures in more than 8 million square feet of Apple facilities, with a combined annual electricity use of over 350 million kWh—resulting in an average energy savings of about 12 percent. In the past two years, we have made energy efficiency improvements to 17 million square feet. \nEnergy Efficiency \nThe cleanest energy is the energy you never use. \nEven as we’re aggressively transitioning to renewable energy at our corporate facilities and in our supply chain, we prioritize energy efficiency. When we use less energy, we have less to procure from clean sources. \nTo increase energy efficiency at our Apple’s offices, data centers, and retail stores, we start with designing buildings to optimize energy use. For existing buildings at our facilities and in our supply chain, we conduct energy efficiency audits to identify system improvements that could reduce energy use. \nA more energy efficient Apple. \nIn 2018, we have continued to expand our energy efficiency programs to data centers, retail stores, offices, and Ramp;D facilities located around the world. This past year, we have opened new buildings on Apple campuses in Cork, Ireland; Hyderabad, India; and Shenzhen, China. Each of these buildings exemplifies Apple’s commitment to energy efficiency with measures such as efficient HVAC systems with optimized air distribution, heat recovery, and radiant cooling; rooftop solar thermal; and occupancy controlled efficient lighting throughout. \nWe also implemented a program within the past year to significantly reduce the energy consumption of new retail stores worldwide. We’re creating energy models during the design process to benchmark energy use and using those models to evaluate specific efficiency measures. The result is energy savings of approximately 10 to 30 percent, thanks to more thoughtful design and selection of building envelope components, lighting, and HVAC systems, as well as controlling all of these systems as efficiently as possible. \nIn fiscal year 2018, we reduced our energy use by an additional 42 million kWh and 150,000 therms—a significant increase in energy savings compared to last year, due to the expansion of our program. Combined with ongoing energy savings from past years, we are now cumulatively saving over 113 million kWh of electricity and \n2.5 million therms of natural gas per year, which corresponds to avoiding 43,199 metric tons of CO2e from entering the atmosphere. ", "\n Introduction Climate Change Resources\n\n Smarter Chemistry Better Together\nSmarter Chemistry _0\nMaterials are what make products faster, tougher, and more beautiful. But they’re not all created equal. That’s why Apple applies our best innovation to choosing materials that are safe for the people who use our products, for the people who make and recycle them, and for our planet. \nHighlights _0\nRSS updates Safer cleaners and degreasers \nWe updated the Apple Regulated All supplier final assembly sites have Substances Specification to adopted safer cleaners and degreasers. strengthen supplier requirements and restrictions on harmful substances. \nFull Material Disclosure \nWe continued to expand our Full Material Disclosure (FMD) program, and we collect comprehensive chemical data for over 75% by mass of new iPhone, iPad, and Mac products. \nChemicals management \nIn 2018, we graduated 50 supplier facilities from our supplier Chemicals Management Program. ", "TD_59\nTD_60\nTD_61\nTD_62", "H6_9\nP_34\nH6_10\nP_35\nH6_11\nP_36", "LI_22\nLI_23\nLI_24\nLI_25\nLI_26", "Rare earth elements \nElements like neodymium, praseodymium, and dysprosium are used in magnets for audio applications, in cameras, and in haptics technology. Traditional recyclers don’t recover these rare earth elements, because they are used in small quantities and technology has not advanced sufficiently to recover them. However, Daisy recovers the small components that contain rare earth elements from iPhone. By consolidating these sources, we’re creating an opportunity for new technology to efficiently recover these materials. \nSteel \nOur primary use of stainless steel is in the enclosure of iPhone XS and iPhone XS Max, and in some Apple Watch models. We’re working with our suppliers to increase and certify the recycled content in the stainless steel we source. And we’ve updated Daisy to recover the steel from iPhone enclosures and bands, which we then send to recyclers who are able to recover this highly recyclable material. \nTin18 \nA market supply of recycled tin exists, but we need to make sure it meets our quality standards. In 2017, we proved we could use 100 percent recycled tin for the solder on the main logic board—where the majority of tin is found—of iPhone 6s. We’re now specifying 100 percent recycled tin for the solder of the main logic boards of seven subsequent iPhone models plus the newly released MacBook Air with Retina display, iPad Air, and iPad mini. Using recycled tin in Apple devices will prevent us from mining almost 29,000 metric tons of tin ore in 2019. But we want to recover as much tin as we’re using—and make sure the tin is recycled and put back into the world’s supply. Unfortunately, tin is not recovered by all electronics recyclers. So we’re prioritizing recyclers that recover tin, in addition to copper and precious metals, from the main logic boards and camera modules retrieved by Daisy. \nTungsten18 \nTraditional recyclers shred products to quickly break them down. Though shredding makes separation easier, it can cause the recycler to lose many materials, like tungsten. That’s why we designed Daisy as an alternative to whole unit shredding. Daisy is able to separate out the Taptic Engine, which we send to speciality recyclers that recover tungsten from it. We’re also working with our suppliers to certify the use of recycled tungsten in our products. \nLithium, tantalum,18 and zinc \nAs we’ve advanced in our work to create circular supply chains, we’ve expanded our program to include other materials in our products, using the Material Impact Profiles to guide us. We recently added lithium, tantalum, and zinc. And we’ve already begun exploring new recycled sources and prioritizing recyclers that can recover these key materials. ", "We screen our materials with comprehensive risk assessment tools, including GreenScreen®, which evaluates substances against 18 different hazards, including carcinogens, mutagens, and endocrine disruptors. \nMapping and Engagement _0\nWe’re exhaustively mapping materials in our products. \nEvaluating the chemicals in the tens of thousands of components used in our products is an enormous task, but it’s essential to our commitment to customer safety. It starts with creating an extensive inventory of chemicals used to make them. That means collecting information not just from our suppliers, but from their suppliers, too. We’re working closely with our partners to construct a detailed map of every chemical inside our materials, including many of the chemicals used to manufacture them. \nWe go beyond what’s required by law to eliminate harmful chemicals from our products. In 2016, we launched the Full Material Disclosure (FMD) program, an ambitious initiative aimed at helping us more comprehensively understand the chemical composition of every substance in every part of our products. This can be challenging because it requires that suppliers disclose proprietary information. We overcome this by storing the data securely and limiting access to a select number of people within Apple who are responsible for toxicological assessments. We prioritize materials with the greatest risks, such as those used in high quantities or those with the greatest human exposure. We collect detailed chemical information for tens of thousands of components and over 75 percent of product mass for new iPhone, iPad, and Mac products. We won’t stop until we rigorously understand the chemistry of every material.  \nIn 2015, we went a step further by creating an inventory of chemicals that are used at supplier facilities but don’t reside in the products. We mapped the process chemicals used in our final assembly facilities and evaluated all control measures such as ventilation, personal protective equipment, and worker training programs. The mapping resulted in the further identification— and continued replacement—of potentially harmful substances that required controls and personal protective equipment from cleaners at final assembly sites. \nAssessment and Management _0\nWe evaluate chemicals for risks to your health, and the planet’s.\n In 2002, we introduced the RSS, which identifies the harmful chemicals we limit or prohibit in our manufacturing processes and products. In 2006, we built our own Environmental Testing Lab, where our chemists look for any potentially harmful substances and test products to evaluate compliance with the RSS. Since the lab’s opening, we have expanded it to more than 30 times its original size and have regularly updated it with state-of-the-art equipment—like an inductively coupled plasma mass spectrometer, liquid and gas chromatography mass spectrometers, and a laser-induced breakdown spectrometer similar to the one used by NASA. We even manufacture artificial sweat to simulate human exposure and evaluate the safety of \nour materials that come into contact with skin. ", "TD_22\nTD_23\nTD_24\nTD_25\nTD_26", "iPhone XS meets the IP68 international standard for dust and water resistance. That means it can withstand being submerged to a depth of 2 meters for up to 30 minutes. \nBuilt to last as long as humanly possible. \nYou count on your device day after day. So we design our products with durable materials, support them with ongoing OS updates, and make them easy to get repaired if anything happens. Because the longer a device is in use, the better use we make of the Earth’s resources. \nDurable by design. \nWe design our products for durability. For example, we built iPhone XS to meet the IP68 international standard for dust and water resistance, which means the devices can withstand being submerged to a depth of 2 meters for up to 30 minutes. And we prove that recycled and renewable materials can also meet our standards. For example, the solder in the main logic board of iPhone is made with 100 percent recycled tin that performs every bit as well as newly mined tin. \nIn our Reliability Testing Lab, we amplify real-world conditions to enhance the durability of our designs. We test your device’s ability to withstand mechanical stresses, such as a sudden impact with a hard surface. In climate tests, we pit our devices against extreme heat and cold, dry and humid conditions, and intense sun exposure. Our chemical sensitivity tests evaluate the ability of devices to stand up to accidental spills like coffee, soda, sunscreen, or ketchup. We often go beyond international standards, and sometimes even create our own. \nWith these tests, we intentionally push our products beyond their limits so we can study what happens. We then use state-of-the-art equipment, such as CT scanners and electron microscopes, to thoroughly understand impacts to the microstructure. This information flows back to our designers and engineers to enable further durability improvements. We repeat this cycle through our product development process until our products meet our rigorous performance standards. \niOS updates your older device with new capabilities. \niOS has the best software update mechanism in the industry, bringing updates to more devices than anyone else. We provide this support so customers and developers alike can take advantage of the latest features, privacy and security updates, and other key improvements— enabling our customers to use devices longer. ", "Protecting responsibly managed forests. \nWe don’t just specify that all of our virgin fiber be sourced responsibly, we also want to make sure we’re not diminishing the world’s supply of responsible paper. For the third consecutive year, production from the responsibly managed forests we’ve protected or helped to improve exceeded the amount of virgin fiber we used in our product packaging.23 \nIn addition to improving the management of 1 million acres of forest directly, the project has the potential to influence millions more by supporting the development of the China Sustainable Plantation Management Guidelines. These guidelines, informed by our project and released by China’s National Forestry and Grassland Administration, have been selected by the national government for use in the National Reserve Forest Plan, which guides the management of more than 40 million acres of forest. \nIn the U.S., we continue to partner with The Conservation Fund (TCF) and support its innovative Working Forest Fund® model. Through this fund, TCF purchases threatened working forests, protects them into the future through conservation easements, then sells the protected forest to begin the process again. So far, we’ve protected 36,000 acres of forest in the Eastern United States that are now certified as sustainably managed. And when forests thrive, so do local communities and wildlife. \nOur journey to responsible packaging \nL_25\ntext_21", "March 2019 (Kenya): Apple participated in the UN Environmental Assembly and conducted bilateral discussions with a number of countries to advocate for policies that enable a circular economy and bold action on climate. \nJanuary 2019 (Vietnam): Apple met with government officials to discuss benefits of electricity market reform, including allowing businesses to purchase power directly from renewable power plants. \nDecember 2018 (China): Apple provided feedback and insights on its approach to renewables procurement in China in support of a publication developed to help the broader corporate community identify renewable energy solutions. \nOctober 2018 (Japan): Apple spoke about clean energy and closed loop innovation at Japan’s Innovation for Cool Earth Forum (ICEF), an international gathering to tackle climate change through technical innovation. \nOctober 2018 (South Korea): Apple met with government officials in Korea to advocate for increased renewable generation and for retail choice, whereby consumers can select their power source. \nApril 2018 (U.S.): Apple filed individual comments to the U.S. EPA, urging it not to repeal the Clean Power Plan because of its importance in reducing emissions. \nApril 2018 (China): Apple submitted formal comments to China’s National Development and Reform Commission about the implications of draft policy on corporate clean energy procurement. \nFebruary 2018 (Japan): Apple filed comments with the Japanese government, calling for the development of a robust and verifiable renewable energy trading system. \nJanuary 2018 (U.S.): Apple filed comments to the Federal Energy Regulatory Commission, urging it not to finalize a rule that would subsidize fossil fuels, which would limit the ability of renewables to compete in the electricity market. FERC chose not to finalize that rule. ", "Wind + Solar + Low-Impact Hydro \nPrineville, Oregon \nTo support our Prineville data center, we recently signed a 200-megawatt power purchase agreement for a new Oregon wind farm, the Montague Wind Power Facility, set to come online later in 2019. It’s our largest project to date, producing over 560 million kWh of clean, renewable energy a year. \nAdditionally, we executed a power purchase agreement for the 56-megawatt Solar Star Oregon II project located just a few miles from our data center. This solar PV project, which came online and began supporting the data center in 2017, produces 140 million kWh of renewable energy a year. To strengthen the connection between Apple and these projects, we use Oregon’s Direct Access program to supply the renewable energy from these projects directly to our data center. \nAlso supporting the data center are two micro-hydro projects that harness the power of water flowing through local irrigation canals that have been operating for over 60 years. These micro-hydro projects generate about 7 to 10 million kWh of renewable energy a year. \nTo supplement these projects, we executed a long-term purchase agreement for all environmental attributes from a 50-megawatt portfolio of six solar projects in Oregon. \nIn fiscal year 2018, the Prineville data center was supported by projects that generated 252 million kWh of renewable energy, which is equivalent to the energy used by 21,670 Oregon homes.2 \nOur Prineville data center takes advantage of the cool and dry climate by cooling the servers with outside air whenever possible. Indirect evaporative cooling is enabled when the outside air temperature gets too high to cool the servers with outside air alone. \n2 Carbon emissions equivalences calculated using U.S. Energy Information Administration, 2017 data: \n https://www.eia.gov/electricity/sales_revenue_price/pdf/table5_a.pdf", "LI_33\nL_30", "\n 86 Appendix D\n\n Environmental Health and Safety Policy Statement\nL_1\ntext_0", "Emissions reductions \nWe’ve significantly reduced our carbon emissions: by 64% since 2011 for Apple’s direct operations (Scope 1 and 2 emissions) and by 35% for Apple’s entire footprint since it peaked in 2015. \nSupplier clean energy \n44 Apple suppliers have committed to power all of their Apple production with 100% renewable energy. With these pledges, we are on track to far exceed our 2020 goal to bring 4 gigawatts of new clean energy into our supply chain. \n100% renewable energy \nWe’re sourcing 100% renewable energy for all the electricity used at our facilities in 43 countries around the world. Two-thirds of this renewable energy comes from Apple-created projects. \nFacilities energy efficiency \nWe saved 41.5 million kilowatt-hours (kWh) through energy efficiency initiatives at our global facilities. ", "TD_18\nTD_19\nTD_20\nTD_21", "Glass _0\nFor glass, we’re focused on material efficiency and recovery. We’re working with our cover glass suppliers to ensure that all glass scrap generated during the manufacturing process is recycled at the highest level possible. Glass is incredibly sensitive to impurities and changes in composition—even the production of new devices introduces impurities—so maintaining the quality is essential for recycling glass. \nGold18 \nGold is already recovered at high rates due to its value. We’re continuing to identify ways to reduce the amount of gold we use in the plating of components like our printed circuit boards. In iPhone XS, for example, gold represents less than 0.01 percent of the overall product mass. We’re working within the complex gold supply chain in order to increase the use of certified recycled gold. \nPaper \nWe’ve successfully created a closed-loop, circular supply chain for paper. For the second year in a row, 100 percent of the wood fiber in our packaging was either from recycled sources or from responsibly managed forests or controlled wood sources. And to ensure we’re not taking away from the world’s supply of responsibly sourced paper, for the third year in a row, we are protecting or creating enough sustainably managed forests to cover all the wood fiber we use in our packaging. \nPlastics _0\nWe’ve first focused on using less plastic through material efficiency. For example, we re-designed the way plastic was injected into the mold of a high-volume part in iPhone XS and iPhone XR, cutting the scrap produced by one-third. For the plastic we do use, we’re looking for renewable or recycled alternatives to fossil fuel-based plastics. However, we use vast numbers of distinct grades of plastic, each designed to meet specific requirements. We are systematically exploring and qualifying recycled and renewable alternatives for each grade, so that whatever type of plastic a product needs, we will have a recycled or renewable option. So far, we’ve identified recycled alternatives for 24 different grades of plastic, allowing us to use an average of 38 percent recycled plastic across 82 components for products released this year. In our packaging, we’re working to eliminate the need for plastics altogether, and we have reduced plastic in our product packaging almost by half in three years. ", "increase in total water savings from the Clean Water Program in two years When we engage suppliers, we also focus on ways to reclaim and reuse water. We look for creative sources of water to reclaim, including condensation from centralized air conditioning. For water reuse, even simple solutions can be highly impactful. For example, we encourage the re-use of the water used to wash products in-between production stages. As they are rinsed, products are moved from tub to tub of water, and as they do so, both the device and water gets cleaner. Simply moving rinse water in the opposite direction of the devices as it gets dirtier, rather than dumping it, allows the same rinse water to be reused two to three times. With solutions both simple and complex, we’ve increased the average water reuse to 39 percent across suppliers. \nCaptured rainwater represents another alternative source of water for our facilities. In 2018, we captured and reused 4 million gallons of rainwater for cooling, irrigation, and construction needs at our Maiden, North Carolina, data center, and at our corporate offices in Cork, Ireland, and Yokohama, Japan. And our newest retail location, Apple Champs-Élysées, features a rainwater collection system which can collect up to 1,800 gallons of water a day. This system will reduce potable freshwater use by 15 percent per year at the store. \nAcross our facilities, use of recycled water worldwide grew from 24 million gallons to 63 million gallons in fiscal year 2018. This reflects recycled water use in two of our three largest co-located data centers as well as offices in Elk Grove, Singapore, and India. We have also made significant investments to bring recycled water to our campuses in Santa Clara Valley, an effort that will replace over 30 million gallons of potable freshwater a year. \nAs we work to minimize our overall water use, we also look to alternative sources to help reduce freshwater withdrawals, including recycled water, reclaimed water, and harvested rainwater. \nFinding alternative sources. \nThrough our supplier Clean Water Program, we help those who make our products improve their water use by performing baseline assessments, providing technical support on water-saving improvements, and monitoring progress. Our suppliers conserved 7.6 billion gallons of water across 116 facilities in 2018, bringing the total cumulative savings to 21 billion gallons since 2013. These savings were achieved through diverse initiatives including installation of low-flow fixtures, use of meters to control consumption, and employee education. And since many of our suppliers also build components for other companies, we’re reducing the water footprint of non-Apple products, too. \nViborg, Denmark; and China to use 80 percent less water for cooling than at previous data centers. In our retail stores, our newly launched back-of-store, or “backstage,” design includes low-flow fixtures that save up to 30 percent more water compared with our previous design. And at our corporate offices in Santa Clara Valley, our landscape efficiency program continues to reduce our outdoor water use—by more than 15.3 million gallons per year—through turf replacement and irrigation system upgrades. Around the world, our pursuit of water efficient design is expected to save more than 90 million gallons of water per year. \nWe designed our latest data centers buildings in Maiden, North Carolina; Reno, Nevada; ", "Apple Champs-Élysées is expected to receive a BREEAM \nVery Good” green building rating. Environmental features include energy efficient lighting, a rainwater collection system, and responsibly sourced materials. \nChampioning green building design \n12million sq. ft. \nWe are constructing and certifying more than 12 million square feet of green building space worldwide. \n Buildings are the embodiment of our commitment to conserve water and energy, reduce waste, and use renewable energy. We actively apply green building principles to all of our offices, data centers, and retail stores around the world. \nWherever possible, we pursue green building certifications like U.S. Green Building Council’s LEED certification and the Building Research Establishment Environmental Assessment Methodology (BREEAM). Apple Park, our new headquarters in Cupertino, is on track to be the largest LEED Platinum-certified office building in North America. When we constructed our Hollyhill building at our campus in Cork, it was one of only six in Ireland to be awarded an “Excellent” rating by BREEAM. And our data center in Viborg, Denmark, is LEED Gold certified—as are buildings at our data centers in Reno, Nevada; Maiden, North Carolina; Mesa, Arizona; and Prineville, Oregon. \nAt our retail stores, we also apply green building principles to reduce our demand on the environment, while providing healthier spaces for our customers to experience our products. When we renovated a historic building on the Avenue des Champs-Élysées for our new retail location, we installed environmental features like high-efficiency lighting systems, rainwater collection, and onsite PV panels, which are expected to earn the building a rating of “Very Good” from BREEAM. Our newly launched back-of-store design for retail locations reduces energy load by 40 percent and is made of recycled materials, including insulation made with 80 percent post-consumer recycled denim. More than 50 stores have already been built with this design. We have also committed to sourcing only Forest Stewardship Council (FSC) certified materials for all tables, benches, and wood fixtures in all new retail stores—nearly 150 locations and hundreds of tables in 2018 alone. FSC only certifies wood made from forests that protect water resources, promote biodiversity, and enhance the lives of workers and local communities. ", "TR_3", "TD_27\nTD_28\nTD_29\nTD_30", "7 We adjusted our methodology for fiscal year 2017 to take into account Apple’s “At Home Advisors” program, where employees work remotely. \n8 Because energy efficiency measures have lasting benefits, energy efficiency savings are calculated cumulatively since 2011. All efficiency measures are retired based on their effective useful lifetime as documented by the Claifornia Energy Commission. \n9 We calculate our progress toward 100 percent renewable energy on a calendar year basis. Beginning January 1, 2018, 100 percent of the electricity we use to power our global facilities is sourced from renewable energy. \n10 We have adjusted previous years’ avoided emissions to remove double counting biogas emissons. \n11 Beginning in fiscal year 2017, “Data centers” includes water use at colocation facilities. \n12 Beginning in fiscal year 2017, “Corporate” includes water use at Apple distribution centers. \n13 Beginning in fiscal year 2017, we’re including waste from Apple’s distribution centers. Starting fiscal year 2018, electronic waste is reported under the “Recycled” figure. \n14 Beginning in fiscal year 2017, waste processed in “Waste to energy” facilities is reported separately. ", "Appendix B \nFacilities Renewable Energy Supplement \nUse of renewable energy at our facilities has been a central component of our emissions reduction strategy since 2011. We’ve learned a lot about how best to secure renewable energy, which has helped us educate suppliers and expand our renewable energy efforts into our supply chain. This Facilities Renewable Energy Supplement summarizes the types of renewable energy solutions we’ve deployed, and details how we implement renewable energy at our data centers—our largest energy loads. \nHow we secure renewable energy \nSince launching our renewable energy program in 2011, we have implemented a number of solutions to procure renewable energy. Our strategy has evolved over time to create the most positive impact. \nOwnership and PURPA. In 2011, Apple’s 100 percent equity ownership of our Maiden solar arrays was the first time a non-energy commercial company built its own utility-scale solar PV project. We used a 1978 federal law called the Public Utility Regulatory Policies Act (PURPA) to structure the project. We then applied this same structure to two more large solar PV and biogas fuel cell projects in North Carolina and two micro-hydro projects in Oregon. This was a landmark moment in corporate renewable energy development and led to an increased use of PURPA in these states. \nDirect Access. Since 2012, in California and Oregon, we’ve used a program called Direct Access to bypass the default electricity generation offered by the utilities servicing our data centers in those states. Instead, we contracted directly with independent power producers who could supply 100 percent renewable electricity. After initially buying from existing, third-party owned projects, we’re now procuring renewable energy from projects we created: The Solar Star II project delivers renewables to our Oregon data center, and the California Flats solar project to our data center in California. \nGreen rider. In 2013, we opened a new data center in Reno, Nevada. With no PURPA or Direct Access options in Nevada, we worked directly with the local utility, NV Energy, to create a whole new regulatory structure. The “Nevada Green Rider” enables us to secure a long-term, fixed-price contract for renewable electricity from a new solar PV project built for us, but managed by the utility. We’ve used this partnership to create four solar projects totaling 320 megawatts. ", "Equity investment. In 2014, we invested in two 20-megawatt solar PV projects in Sichuan, China to support all our in-country retail stores, corporate offices, and data storage facilities. This project represented the first time a commercial company created a new large-scale project in China for its own use. We’ve since replicated this model many times for Apple’s supply chain. \nPortfolio solutions. In 2015 and 2016, we adapted to land scarcity constraints in Singapore and Japan by contracting for solar PV on 800 rooftops in Singapore and 300 in Japan. We adapted our approach in each country to fit local partnerships and regulatory structures: We signed a long-term agreement similar to a power purchase agreement in Singapore and made an equity investment in Japan. These projects offer us long-term flexibility as our load grows. \nRenewable microgrid. Since 2017, we’ve been powering Apple Park with 100 percent renewable energy—about 75 percent of which is generated onsite and managed by a microgrid. The onsite generation comes from 14 megawatts of rooftop solar PV and 4 megawatts of baseload biogas fuel cells. Any additional energy required is drawn by Direct Access from the California Flats solar project in nearby Monterey County. The microgrid system with battery storage manages the renewable energy generation and the building’s energy use; optimizes demand management, load shifting, and frequency regulation services; and ensures uninterrupted energy reliability against local grid outages. \nA focus on data centers \nWe used over 1.3 billion kWh of electricity in fiscal year 2018 to power our data centers and colocation facilities around the world, representing over 60 percent of Scope 1 and 2 emissions. We’re proud that 100 percent of that electricity came from clean, renewable sources including solar, wind, biogas fuel cells, and low-impact hydro power. To cover our needs, we build our own renewable power projects and work with utilities to purchase clean energy from locally obtained resources. In fiscal year 2018, we avoided the equivalent of more than 466,000 metric tons of carbon dioxide emissions by using 100 percent renewable energy for our data centers—that’s equivalent to taking almost 100,000 cars off the road for a year.1 \nWe’re staying at 100 percent even as Apple’s data center presence continues to grow. We now operate five data centers, and several more are being developed. These data centers are spread across North America, Europe, and Asia. Each has unique design features that conserve energy and reflect the climate, as well as other aspects, of its location. \n1 Greenhouse gas equivalencies calculated using the U.S. EPA Greenhouse Gas Equivalencies Calculator: \n\n http://www.epa.gov/energy/greenhouse-gas-equivalencies-calculator", "Solar \nReno, Nevada \nUnlike competitive energy markets where we’ve located some of our data centers, the regulated electricity supply in Nevada did not offer a simple solution for us to create new renewable energy projects dedicated to our data center. So, in 2013, we created a partnership with the local utility, NV Energy, to develop the Fort Churchill Solar project. Apple designed, financed, and constructed the project, and NV Energy operates it and directs all the renewable energy it produces to our data center. The Fort Churchill Solar project uses a photovoltaic panel with curved mirrors that concentrate sunlight. The 20-megawatt array has an annual production capacity of over 43 million kWh. \nTo facilitate further renewable development in Nevada, Apple worked with NV Energy and the Nevada utility commission to create a green energy option open to all commercial customers, called the Nevada Green Rider, that does not require the customer to fund project development up-front. Thanks to this new option, in 2015 we announced our second Nevada solar project, the 50-megawatt Boulder Solar II project. This project came online in 2017, producing 137 million kWh of renewable energy a year. \nWe have used the Nevada Green Rider two more times, first for the 200-megawatt Techren Solar II project. Apple’s largest solar project to date, it is estimated to produce over 540 million kWh when it comes online later this year. Next was the 50-megawatt Turquoise Nevada project, estimated to produce 110 million kWh a year and come online in 2020. \nIn fiscal year 2018, the Reno data center was supported by projects that generated 253 million kWh of renewable energy, which is equivalent to the energy used by 24,690 Nevada homes.2 \nLike in Prineville, our Reno data center takes advantage of the mild climate by cooling the servers with outside air whenever possible. When the outside air is too warm to cool the servers alone, it draws from indirect evaporative cooling. \n2 Carbon emissions equivalences calculated using U.S. Energy Information Administration, 2017 data: \n https://www.eia.gov/electricity/sales_revenue_price/pdf/table5_a.pdf_0", "\n 50 Better Together\n\n 55 Appendix A\nL_0\ntext", "Of the renewable energy projects Apple has helped create, we have direct ownership in over 600 megawatts. This is among the largest direct investments in renewable energy by a non-energy company. \nSince 2018, 100 percent of the electricity we’ve used at our facilities has come from renewable sources. To secure renewable energy projects, we’ve taken on project ownership, made equity investments, sparked creative new partnerships with utilities, and entered into power purchase agreements. We’ve also deployed a variety of technologies like wind, solar PV, micro-hydro projects, and biogas fuel cells. (See Appendix B for a comprehensive view of solutions we’ve implemented to secure renewable energy at our facilities.)\nIn cases where we need more renewable energy than what’s generated by our Apple-created projects, we directly purchase renewable energy from newer projects in nearby markets, or through available utility green energy programs. When these options are not available, we are willing to procure robust renewable energy credits (RECs) tied to recently constructed projects, applying the same rigor to these purchases as we do to our Apple-created renewables. When Apple acquires RECs, we require that they are Green-e Energy certified, where available, and come from the same power grid—and preferably in the same state or country—as the Apple facility they support. \nL_3\ntext_2", "LI_6", "LBody_23\nLBody_24\nLBody_25\nLBody_26\nLBody_27\nLBody_28\nLBody_29", "LI_10\nL_11", "Repair locations \niOS 12 was released in 2018 but is optimized for devices as far back as 2013, the largest base of support ever for an iOS release. It makes devices faster and more responsive; for example, iOS 12 enables an up to 70 percent faster camera swipe, up to 50 percent faster keyboard display, and up to two times faster app launch on the iPhone 6 Plus.19 And many past generations of iPhone or iPad can take advantage of the latest features like Group FaceTime and Screen Time. Out of all devices using iOS—including those released many years ago—80 percent are using iOS 12. \nBetter use of materials through repair. \nWhen devices are repaired rather than replaced, we make better use of the materials in them. And we know even the most dependable products sometimes need service. That’s why we offer a network of more than 5,000 Apple Store locations and Apple Authorized Service Providers worldwide to provide safe, high-quality repairs. We offer battery replacement for all of our products—and we make sure the replaced batteries are recycled responsibly. Customers can access these repair locations in person or by mail. And we are continuing to expand our services. \nTo make sure that repairs are performed safely, securely, and to the highest quality, we continuously train and certify service channel personnel, with over 265,000 active trained personnel. Our providers perform diagnostics and calibrations to target repairs precisely, avoiding unnecessary service and replacements of parts. When new parts are needed, only genuine Apple parts are used, so repaired devices work exactly the way they should. And all Apple-certified repairs are backed by Apple. \nWe continue to expand access to high-quality and convenient repair options for our customers. Our new method for optimizing iPhone screen repairs has allowed thousands more independent shops to start offering this repair service. \nWe offer a network of more than 5,000 retail stores and Apple Authorized Service Providers worldwide to repair devices so that they can be used longer. ", "Building a circular fiber packaging supply chain \nTo improve our packaging, we are working to eliminate plastics, increase recycled content, and reduce our packaging overall. The results are more beautiful than ever—for our packaging and for the planet. \nCutting down on plastic. \nIn three years, we’ve reduced our plastic use in U.S. product packaging by 48 percent. Starting with iPhone 7 and iPad Pro, we changed the plastic tray in the packaging to an all molded fiber alternative. This switch allowed us to also create iPhone XS and XR, iMac Pro, MacBook Air, iPad mini, and iPad Pro with majority-fiber packaging. And as of March 2019, we’ve transitioned to 100 percent fiber retail bags in all retail stores. These new bags even have a knitted paper handle and contain 80 percent recycled fiber. \nUsing recycled and responsible sources. \nWe aim to maximize the use of recycled paper in our packaging. In fiscal year 2018 we used 58 percent recycled paper, on average. When virgin paper is needed, we require our suppliers to source wood fiber from responsibly managed forests or Forest Stewardship Council (FSC) controlled wood sources.22 For the second year in a row, all of our packaging suppliers sourced their paper responsibly. And we conduct regular audits to ensure their claims. \nOutside of packaging, less than 1 percent of our total fiber use is for our corporate offices—of which approximately 85 percent came from recycled or responsible sources in 2018. ", "Zero Waste _0\nFinding new ways to keep old materials out of landfills. \nWe’re working to reuse, recycle, compost, or when necessary, convert into energy all the waste created by our own facilities and in our supply chain. Reaching this goal requires collaboration among multiple Apple teams, local governments, and specialty recyclers, and we’ve already seen great success. \nA zero waste program for Apple facilities. \nWe’re currently pursuing an ambitious goal of Zero Waste to Landfill at our more than 450 corporate facilities, our more than 500 retail stores, and our five data centers.24 Our first aim is to reduce the waste we generate by rethinking the materials we use—in areas from building renovations to food service. And for the waste we do create, we’re working to recover it to its highest and best use through robust composting, recycling, and reuse programs. \nIn fiscal year 2018, we generated 74,000 metric tons of waste and diverted about 74 percent from landfill through recycling and composting, up 3 percentage points from fiscal year 2017. To reduce the waste we generate, we work with our upstream vendors to streamline materials used and select those designed with the environment in mind. For example, we set up new packaging standards for all of our data centers, eliminating unnecessary packaging and finding ways to reuse the packaging shipped. When we do create waste, we focus on managing it responsibly. In renovations across our hundreds of corporate facilities, nearly 85 percent of the furniture is recovered, repaired, and made available for reuse. And because lack of data is one of the biggest obstacles to managing waste well, we installed remote monitoring systems that allow us to identify problem areas and resolve them quickly and accurately. \nAcross facilities that generate hazardous waste, Apple takes great strides to ensure it is managed responsibly. We complete regular audits of the Transportation, Storage, and Disposal Facilities (TSDFs) where hazardous waste is ultimately sent to be treated, recycled, or incinerated. Only facilities we audit are allowed to accept and treat the hazardous waste Apple generates. We take this commitment seriously—if any TSDF does not meet our strict standards for environment, health, safety, and waste management protocols, we send waste to an alternate, approved facility. ", "Mapping and \nengagement \nCreate a comprehensive inventory of chemicals used by suppliers to make our products \nAssessment and management \nAssess and manage chemicals for risks to human health and environment \nInnovation \nTransition to safer chemistries through chemical innovations, beyond what is required ", "100% \nSince 2015, 100 percent of the process chemicals used at our supplier final assembly facilities complied with Apple’s Regulated Substances Specification. \nChemistry Innovation _0\nInventing ways to replace bad substances with good ones. \nWe’re continually evaluating the materials used in our products and design to avoid harmful substances altogether. We seek to reduce and remove toxins, by developing new, safer chemistries. When there is not an existing alternative to a chemical we’ve determined harmful, we innovate. We work with our suppliers to develop custom chemistries made with safer substances. To find a replacement for PVC and phthalates, for example, we and our suppliers invested in four years of research and development to create power cords and headphone cables that had both the performance and chemistry that met Apple standards.27 This deep commitment to innovating on safer chemistries sets Apple apart from many others who still use PVC and phthalates in their cables. \nWe began to identify and phase out harmful substances in the late 1990s, beginning with PVC in our packaging, and moving on to the lead that was in our display glass and solder.28 Since then, we’ve also replaced mercury displays with energy efficient and mercury-free LEDs and OLEDs; eliminated arsenic from display glass;29 replaced brominated flame retardants from thousands of parts such as enclosures, cables, circuit boards, and connectors, using safer metal hydroxides and phosphorus compounds in their place;30 and eliminated beryllium-copper connectors and springs from all new product designs. \nWe’re also focused on replacing harmful substances in manufacturing process chemicals to keep workers in our supply chain safe. We have long been engaging with our manufacturing partners to ensure safe working conditions. After analyzing the chemical composition of cleaners and degreasers used at supplier final assembly sites, we chose to go a step further and replace all identified hazardous chemicals with safer alternatives such as ethanol, isopropyl alcohol, glycerol, and water. In our first year of this Safer Cleaner Substitution program, we helped 18 sites replace 24 problematic formulations.31 In addition, in 2018, we added n-Propyl Bromide (nPB) to our RSS list of banned process chemicals for cleaning and degreasing. These efforts seek to avoid use of harmful chemicals, which protects the people who make, use, and recycle our products and keeps pollutants out of the land, air, and water. ", "27 Apple products are free of PVC and phthalates with the exception of power cords in India, Thailand, and South Korea, where we continue to seek government approval for our PVC and phthalates replacement. While Apple’s phaseout covers the vast majority of products and components, products by Beddit, which Apple recently acquired, and some older Apple product designs may not be fully BFR-free and PVC-free. \n28 Apple products comply with the European Union Directive 2011/65/EU and its amendments, including exemptions for the use of lead such as high temperature solder. Apple is working to phase out the use of these exempted substances where technically possible. \n29 Arsenic is present in minuscule quantities in some semiconductor devices. \n30 While Apple’s phaseout covers the vast majority of products and components, products by Beddit, which Apple recently acquired, and some older Apple product designs may not be fully BFR-free and PVC-free. \n31 Only chemicals that meet GreenScreen® benchmark 3 and 4 are considered safer and preferred for use. \n© 2019 Apple Inc. All rights reserved. Apple, the Apple logo, AirPort, AirPort Express, AirPort Extreme, Apple TV, Apple Watch, FaceTime, iMac, iPad, iPad Pro, iPhone, iPod, Mac, iMac Pro, Mac Pro, MacBook, MacBook Pro, Mac mini, macOS, Retina, Taptic Engine and watchOS are trademarks of Apple Inc., registered in the U.S. and other countries. HomePod is a trademark of Apple Inc. AppleCare and Apple Store are service marks of Apple Inc., registered in the U.S. and other countries. Beats is a trademark of Beats Electronics, LLC., registered in the U.S. and other countries. IOS is a trademark or registered trademark of Cisco in the U.S. and other countries and is used under license. ENERGY STAR and the ENERGY STAR mark are registered trademarks owned by the \nU.S. Environmental Protection Agency. Other product and company names mentioned herein may be trademarks of their respective companies. April 2019. ", "2018 _0\n2017 _0\n2016 _0\n2015 _0\n2014 _0\n2013 _0\n2012 _0", "54,590 \n45,400 \n34,370 \n28,100 \n28,490 \n29,300 \n21,220 ", "39,990 \n34,560 \n27,000 \n19,360 \n20,710 \n22,090 \n14,300 ", "11,110 \n8,300\n 7,370 \n8,740 \n7,780 \n7,210 \n6,920 ", "8,730 \n36,250 \n41,000 \n42,460 \n63,210 \n91,510 \n139,160 ", "520,500 \n293,440 \n303,910 \n312,910 \n259,130 \n225,630 \n202,060 ", "337,340 \n121,000 \n117,550 \n139,940 \n110,940 \n90,948 \n85,090 ", "183,160 \n172,440 \n186,360 \n172,970 \n148,190 \n134,685 \n116,970 ", "583,820 \n375,090 \n379,280 \n383,470 \n350,830 \n346,440 \n362,440 ", "2,182 \n1,832 \n1,420 \n996 \n839 \n708 \n608* ", "1,419,240 \n1,225,210 \n974,570 \n851,660 \n922,860 \n764,550 \n304,000 ", "1,333,850 \n1,127,550 \n901,950 \n794,830 \n840,490 \n676,630 \n240,230 ", "85,390 \n97,660 \n72,620 \n56,830 \n82,370 \n87,920 \n63,770 ", "113,203,780 \n69,989,660 \n55,288,800 \n37,875,000 \n31,225,000 \n26,241,600 \n11,354,200 ", "2,541,440 \n2,453,410 \n2,228,477 \n1,676,735 \n1,431,215 \n1,238,291 \n548,508 ", "99 \n97\n 96 \n 93 \n 87 \n 73 \n 60 ", "690,000 \n589,000 \n541,000 \n336,000 \n255,000 \n195,000 \n116,000 ", "1,260 \n1,000 \n630 \n573 \n494 \n430 \n345 ", "460 \n410 \n207 \n166 _0\n113 \n69 \n57 ", "110 \n110 _0\n99 _0\n111 \n103 \n94 \n71 ", "690 \n480 \n324 \n296 _0\n278 \n267 \n217 ", "36,553,900 \n31,595,200 \n21,618,850 \n13,110,880 \n6,833,000 \n5,923,810 \n4,850,160 ", "108,515,200 \n68,509,300 \n28,198,560 \n19,599,570 \n14,621,940 \n15,866,650 \n11,464,020 ", "6,277,800 \n3,342,700 \n2,287,320 \n1,002,300 \n508,040 \n70,550 \n123,460 ", "74 \n71 _0\n66 \n63 \n68 \n73 \n70 _0", "TR", "TD\nTD_0\nTD_1", "Renewable Energy \nCharting the course to 100%. \nL_2\ntext_1", "H6_6\nP_22\nP_23", "LI_8", "LBody_32\nLBody_33\nLBody_34\nLBody_35\nLBody_36\nLBody_37", "LI_11\nL_12", "Supplier responsibility \nWe hold ourselves and our suppliers to the highest standards when it comes to human rights, environmental protection, and health and safety practices in our supply chain—including for sourcing of materials. \n Learn mor\nSourcing recycled and renewable materials. \nWe aim to end our reliance on mining. That’s why we are transitioning to recycled16 and renewable materials, and maximizing material efficiency, all while maintaining the exceptional quality and finish of our final products. \nWith such a broad ambition, we needed a robust, data-driven way to determine where to start. So we assessed 45 elements and raw materials based on their environmental, social, and supply impacts. The resulting Material Impact Profiles helped us identify a short list of materials on which to focus first. And we continue to use these profiles to determine which materials to tackle next. \nEach material requires a different solution. For some, like rare earth elements, recycled material is not widely available. So simply understanding the barriers to recovery requires significant exploration, and the learning represents meaningful progress. For other materials, like tin, recycled material markets are more robust. So we piloted uses of recycled tin in select applications and brought them to scale. Throughout these explorations and across many materials, we’ve deepened our relationships with downstream recyclers. And we’ve partnered with suppliers further upstream to use fewer materials and find alternative, recycled sources. ", "Aluminum \nTo use 100 percent recycled aluminum, we had to invent a whole new kind. Standard recycled aluminum accumulates impurities each time it’s recycled. So we engineered an alloy that can accommodate scrap sources of aluminum and delivers the same strength, durability, and flawless finish. We use sophisticated computational models to identify an alloy chemistry that can withstand a countless number of recycling loops. Our own products and processes are a valuable source of aluminum scrap for our custom alloy, including iPhone enclosures recovered by Daisy. In fall 2018, we introduced MacBook Air and Mac mini models with 100 percent recycled aluminum enclosures. And use of recycled materials helped cut the carbon footprint of each product nearly in half. In 2019, these efforts will allow us to avoid mining more than 900,000 metric tons of aluminum-bearing bauxite. \nCobalt17 \nWe use cobalt primarily in batteries. A limited supply of recycled cobalt is available on the market for use in batteries like ours, not because recyclers lack the ability to recover cobalt, but because many recyclers don’t have enough scrap sources, like batteries. So we set out to find new sources of scrap for our recyclers, starting with our own supply chain. We began sending iPhone batteries recovered from Daisy, Apple’s iPhone disassembly robot, to our upstream recycler in Apple’s battery supply chain. And after a successful pilot program, select battery and final assembly suppliers now send Apple’s battery scrap to our recycler upstream. Recycled cobalt from both scrap sources is being recycled into the batteries of new Apple products—a true circular supply chain. \nCopper _0\nAs a highly conductive metal, copper is used to make our printed circuit boards, cables, and connectors. We’re engaging with our suppliers to investigate new methods to manufacture our printed circuit boards in a way that uses less copper. For the copper we do use, we are moving to recycled sources. We are currently certifying the recycled copper content in the printed circuit boards of select iPhone models and estimate that the recycled copper used for these products represents over 60,000 metric tons of mined ore. To increase our contribution to recycled material streams, Daisy now liberates seven different components from which copper can be recovered, including the main logic board and the camera. And we’re directing these components to recyclers and smelters that can recover copper at high rates. ", "\n Better Together\nBetter Together _0\nThe challenges we’re tackling—like powering a global business with 100 percent renewable energy, or making products using only recycled or renewable materials—are too big for any one company to solve alone. So we listen. We speak. We convene. We advocate. We lead. We learn. And we engage at all levels: locally, nationally, and internationally; and with policymakers, researchers, non-governmental organizations, other companies, and our customers. Every conversation, every meeting, and every presentation brings us closer to unlocking more environmental innovations that we—and others—can apply. Because bold ideas and creative solutions can emerge anywhere, from anyone, at any time. \nMore partnerships. More progress. \nWe work with a wide range of nonprofit, industry, government, and business partners from across the globe. We’ve built strong relationships with a broad group of stakeholders, including those who might disagree with our approach. We do this because we believe that addressing their concerns often leads to better solutions. Exposing ourselves to varied perspectives helps us challenge our assumptions and refine our methods. That’s critical when you’re pursuing a vision that’s as bold and complex as ours: to one day make products without taking from the Earth. \nJoining industry associations allows us to work closely with some of the best companies across all sectors. Our memberships in organizations like the World Business Council for Sustainable Development (WBCSD), World Economic Forum’s Platform for Accelerating Circular Economy, Ellen MacArthur Foundation, Aluminum Stewardship Initiative, Ceres, Corporate Eco Forum, the Chinese Association of Circular Economy, Digital Europe—and most recently, the Japan Climate Leaders Partnership—provide us the opportunity to exchange ideas with those who share our commitment to a more sustainable future. ", "1,830 \n1,536 \n1,157 \n831 \n702 \n590 ", "351 \n296 \n262 \n166 \n137 \n118 ", "LI_1", "Link_9\nLink_10\nLink_11\nLink_12\nLink_13", "Low-carbon design \nTransition product materials, manufacturing processes, and operating systems to low-carbon alternatives \nEnergy efficiency \nReduce energy use at corporate and supplier facilities \nbeyond what is required ", "H6_4\nP_20\nH6_5\nP_21", "LI_5", "LBody_18\nLBody_19\nLBody_20\nLBody_21\nLBody_22", "LI_12\nL_13", "LI_15", "LBody_48\nLBody_49\nLBody_50\nLBody_51\nLBody_52", "LI_18", "LBody_60\nLBody_61\nLBody_62\nLBody_63\nLBody_64", "LI_20", "LBody_69\nLBody_70\nLBody_71\nLBody_72\nLBody_73", "Water Treatment Manager at a Clean Water Program facility for packaging manufacturing, China. \nPursuing water stewardship. \nWater connects communities. It’s also essential for human health and thriving ecosystems. So we look beyond our own operations to restore water resources in critical regions and ensure that local communities have water access. \nIn Prineville, Oregon, we created a water supply solution to meet the needs of Apple’s local data center and the broader community for years to come. We partnered with the City of Prineville to build an aquifer storage and recovery system, which uses natural underground spaces to cost-effectively store water throughout the year for use in peak demand months. With a storage capacity of up to 180 million gallons—significantly more than we use for our data center—the system also helps mitigate future climate-related risks of water shortages. \nApple and our suppliers have also partnered with the Alliance for Water Stewardship (AWS), a collaboration between businesses and nongovernmental organizations (NGOs), in a program to support water management beyond the factory and into the community. We’ve launched a pilot project with five suppliers in the Kunshan region of China, an area with a cluster of electronics suppliers that is experiencing water-quality challenges. These five suppliers aim to meet the AWS global standards, which promote effective water management and safe water, sanitation, and hygiene (WASH) for local communities. Already, two Apple suppliers have received AWS certification, including the first Gold certification ever to be awarded in the electronics industry. And we plan to expand our supplier stewardship program to improve water quality at other sites like the Yangtze River Delta and the Pearl River Delta. ", "2012 2016 2020 \n10th Update to RSS \nProcess chemicals mapped at supplier final assembly sites \nLaunched supplier Chemical Management Program \nEliminated arsenic from display glass* ", "Solar + Biogas Fuel Cells \nMaiden, North Carolina \nBetween 2011 and 2015, we installed 68 megawatts of Apple-created projects: two 20-megawatt solar projects, an 18-megawatt solar project, and 10 megawatts of biogas fuel cells. We then partnered with the local utility, Duke Energy, to help build five solar projects through its Green Source Rider program. These solar projects came online beginning in 2015 and were Duke Energy’s first Green Source Rider projects to become operational. We worked with Duke Energy for several years to develop this green energy tariff option, which allowed Apple and Duke Energy to work together to develop new renewable energy projects. The five projects have a combined capacity of 20 megawatts. In 2017, we made long-term commitments to five more solar projects in North Carolina, for an additional 86 megawatts of clean energy. In fiscal year 2018, the Maiden data center was supported by projects that generated 303 million kWh of renewable energy, which is equivalent to the energy used by almost 24,000 North Carolina homes.2 \nEnergy efficiency measures we’ve implemented at our Maiden data centers include use of outside air cooling through a waterside economizer during night and cool-weather hours, which, along with water storage, allows the chillers to be idle 75 percent of the time. \n2 Carbon emissions equivalences calculated using U.S. Energy Information Administration, 2017 data: https://www.eia.gov/electricity/sales_revenue_price/pdf/table5_a.pdf. ", "Solar _0\nNewark, California \nOur data center in Newark, California, is powered by 100 percent renewable energy. We hit this milestone in January 2013, when we began serving the data center with energy sourced primarily from California wind power. We’re acquiring this energy directly from the wholesale market through California’s Direct Access program. In 2017, Apple’s 130-megawatt California Flats solar project in nearby Monterey County came online, and now we use Direct Access to supply power from that project directly to our data center as well as other Apple facilities in California. \nIn fiscal year 2018, the Newark data center was supported by projects that generated 114 million kWh of renewable energy, which is equivalent to the energy used by 17,150 California homes.2 \n2 Carbon emissions equivalences calculated using U.S. Energy Information Administration, 2017 data: \n https://www.eia.gov/electricity/sales_revenue_price/pdf/table5_a.pdf_1", "LBody_100\nLBody_101\nLBody_102\nLBody_103\nLBody_104", "Fiscal Year _0\n2018 _1\n2017 _1\n2016 _1\n2015 _1", "Fiscal Year _1\n2018 _2\n2017* \n2016 _2\n2015 _2", "Location \nScope 1 Scope 2 \nScope 1 Scope 2 _0\nScope 1 Scope 2 _1\nScope 1 Scope 2 _2", "Fiscal Year _2\n2014 _1\n2013 _1\n2012 _1\n2011 ", "Location _0\nScope 1 Scope 2 _3\nScope 1 Scope 2 _4\nScope 1 Scope 2 _5\nScope 1 Scope 2 _6", "15,335 21,555 \n13,727 \n17,503 \n11,343 48,215 \n12,656 59,516 ", "12,929 0 \n10,747 \n0 _6\n9,132 25,450 \n9,238 39,428 ", "411 0 \n509 \n0 _7\n560 0 \n556 0 ", "148 0 \n83 \n0 _8\n59 0 \n45 0 ", "115 0 \n337 \n0 _9\n237 4,265 \n564 2,141 ", "1,000 0 \n743 \n0 _10\n715 0 \n804 0 ", "51 6,852 \n50 \n5,826 \n32 4,946 \n— 3,243 ", "385 8,577 \n390 \n7,490 \n— 1,049 \n— 280 ", "296 6,126 \n868 \n4,187 \n609 12,505 \n1,449 14,424 ", "18 0 \n2,201 \n0 _11\n146 7,664 \n0 28,988 ", "0 0 _4\n2,201 _0\n0 _12\n146 0 \n0 0 _5", "0 0 _6\n0 _13\n0 _14\n0 7,664 \n0 28,988 _0", "5,355 41,658 2,812 11,036 2,543 30,662 \n6,158 3,548 2,610 \n74,002 44,606 29,397 \n2,812 83,285 787 — 2,025 — \n2,600 65,769 746 — 1,854 — ", "Total Energy Use (kWh) \nRenewable Energy (kWh) \nDefault Utility Emissions1 (metric tons CO2e) \nApple’s Emissions Including Renewable Energy2 (metric tons CO2e) \nPercent Renewable Energy3 ", "42,500 \n0 _19\n10 _0\n10 _1\n0% ", "38,552,300 \n1,471,680 \n17,200 \n16,500 \n4% ", "79,462,900 \n46,966,900 \n31,800 \n14,500 \n59% ", "108,659,700 \n88,553,400 \n44,300 \n11,000 \n81% ", "142,615,000 \n121,086,100 \n60,500 \n12,700 \n85% ", "145,520,900 \n143,083,200 \n66,300 \n1,600 \n98% ", "289,195,800 \n286,378,100 \n125,600 \n1,500 \n99% _0", "327,663,800 \n326,959,700 \n146,600 \n400 \n99.8% ", "LI_0", "Link_3\nLink_4\nLink_5\nLink_6", "Creating powerful solutions to push humanity forward takes relentless innovation. Resolving to do this without taking precious resources from the planet means holding ourselves and our suppliers to ever higher standards. We know that accomplishing this work will require all of our best efforts. At Apple, we are committed to building groundbreaking products and services with the mission to leave our world better than we found it. \nIt was just a year ago that we reached our goal of covering 100 percent of our operations with 100 percent renewable electricity. That work continues as we source the clean energy needed to maintain that standard — even as our company grows. And our learnings have paid off in significant ways as we help the manufacturers in our supply chain make the same energy transition we have. To date, more than 40 suppliers have made commitments to join us, putting us well on track to exceed our goal of putting 4 gigawatts of clean energy online by 2020. \nAt the same time, we are launching the next phase of our industry-leading work to better use and reuse materials with a state-of-the-art lab to support our research and innovation with material recovery. This initiative, along with Daisy - our fearless disassembly robot, means we’re doing even more with the materials from old devices our customers return for recycling. And we’ve found new ways to make it easier for devices that still have value to go on to another user. Our launch of the new MacBook Air and Mac Mini with enclosures made from 100% recycled aluminum was just the beginning: Together, we’re pioneering a future where we no longer need to mine precious materials from the Earth to make our products. \nAt Apple, it’s simple. We apply the same level of innovation that goes into everything we create, design, power and manufacture to making things better for people and the planet. And we make it simple for customers and partners who share our passion to join us in this work. In a time where the threats facing our planet are too great to ignore, we are demonstrating that businesses must play a vital role. We are proud to do the hard work, to make the breakthroughs, and tirelessly search for ways to ensure the better future for our planet that we all deserve. ", "Our Approach \nWe measure more, so we can do more. \nWe take responsibility for our entire carbon footprint. That includes the emissions beyond our direct control, like those from sourcing materials, making our products, and our customers using their devices.We calculate our carbon footprint in five major areas: corporate facilities, product manufacturing, product use, product transportation, and product end-of-life processing. We use this information to tell us where to focus. \nWe prioritize use of renewable energy, starting with our own facilities. We’ve transitioned to 100 percent renewable energy for the electricity we use at our offices, retail stores, and data centers around the world, which has reduced facilities emissions to only 2 percent of our comprehensive carbon footprint.5 And we’ve extended our efforts into our supply chain, where product manufacturing represents 74 percent of overall emissions. Whether designing a product, an operating system, or a manufacturing process, we consider the environmental impact—alongside cost, durability, form, and functionality. And because the cleanest energy is the energy you never use, we’re reducing energy use at facilities we operate as well as those where our suppliers make our products. ", "Clean energy technology offers tremendous benefits to our suppliers, to electricity grids, and to countries. So we actively support policies that create cost-effective renewable energy markets, and we work closely with suppliers to engage local, regional, and national governments. This encourages the development of policies that support scalable renewable energy solutions. \n“The \n Supplier Clean Energy Program\nJeff Williams \nApple’s Chief Operating Officer ", "LI_17", "LBody_56\nLBody_57\nLBody_58\nLBody_59", "LI_19", "LBody_65\nLBody_66\nLBody_67\nLBody_68", "LI_30", "LBody_91\nLBody_92\nLBody_93\nLBody_94", "Our Approach _1\nBetter thinking means better chemistry. \nWe have led the industry in removing many harmful substances from our products, and we go to great lengths to make sure that what we take out stays out. Our approach begins with collecting comprehensive chemical composition information for the substances used to make our products as well as the process chemicals, like cleaners and degreasers, suppliers apply when making our products. We use this information to evaluate supplier compliance with the \n Apple Regulated Substances Specification (RSS)\nOur approach to smarter chemistry ", "2000 \n2004 \n2008 \nIntroduced RSS ", "LI_34\nL_31", "LI_40", "LBody_121\nLBody_122\nLBody_123\nLBody_124", "reduction in plastic use \naverage recycled wood \nof wood fiber in our packaging \nWe are protecting or creating ", "in 2018, compared to 2015 \nfiber content \ncomes from responsibly managed \nenough responsibly managed ", "10,397,400 \n14,567,500 \n13,737,320 \n3,006,170 ", "24,600,000 \n27,100,000 \n29,200,000 \n38,000,000 ", "18,500,000 \n21,100,000 \n22,800,000 \n29,600,000 ", "1,300,000 \n1,200,000 \n1,200,000 _0\n1,300,000 _0", "4,700,000 \n4,700,000 _0\n4,900,000 \n6,600,000 ", "50,000 \n100,000 \n300,000 \n500,000 ", "168,000 \n145,000 \n129,000 \n133,000 ", "64% \n65% \n62% \n60% ", "36% \n35% \n38% _0\n40% _0", "19,000 \n24,000 \n34,000 \n36,000 ", "29,980 7,980 \n25,430 33,290 \n20,537 30,408 \n15,415 19,564 ", "24,720 0 \n20,580 0 \n17,121 0 \n13,248 0 ", "630 0 \n530 0 \n397 0 \n369 0 ", "320 0 \n330 0 \n248 0 \n233 0 ", "1,350 0 \n1,160 0 \n883 0 \n121 0 ", "890 0 \n710 0 \n780 0 \n892 0 ", "30 0 \n90 0 \n65 0 \n0 3,767 ", "200 0 \n220 0 \n38 0 \n117 2,201 ", "1,840 7,980 \n1,810 33,290 \n1,005 30,408 \n435 13,596 ", "60 410 \n4,210 1,520 \n2,738 1,621 \n13 0 ", "30 0 _0\n150 0 \n126 0 \n0 0 ", "0 0 _0\n70 0 \n139 0 \n0 0 _1", "20 0 \n950 0 \n1,077 0 \n13 0 _0", "0 0 _2\n1,530 0 \n713 0 \n0 0 _3", "N/A 0 \nN/A 0 _0\nN/A 0 _1\nN/A — ", "N/A 410 \nN/A 1,520 \nN/A 1,621 \nN/A — _0", "4,300 350 2,720 0 1,580 350 \n4,920 1,440 2,490 0 2,430 1,440 \n3,679 8,920 1,597 0 2,082 8,920 \n3,800 22,893 2,269 0 1,531 22,893 ", "11,110 N/A \n8,300 N/A \n7,370 N/A \n8,744 N/A ", "3,490 N/A \n2,540 N/A \n— N/A \n— N/A _0", "5,640 N/A \n— N/A _1\n— N/A _2\n— N/A _3", "54,600 8,730 \n45,400 36,250 \n34,324 40,953 \n27,972 42,457 ", "18 0 _0\n0 _15\n0 _16\n0 0 _7", "0 0 _8\n0 _17\n0 _18\n0 0 _9", "28,486 63,213 \n29,300 91,505 \n21,224 139,164 \n21,656 154,273 ", "Total Gas (mmBTU) \nRenewable Biogas (mmBTU) \nTotal Electricity (million kWh) \nRenewable Electricity (million kWh) ", "796,730 \n232,430 \n638 \n625 ", "697,670 \n232,430 _0\n381 \n381 _0", "541,690 \n540,970 \n1,349 \n1,348 ", "540,970 _0\n540,970 _1\n295 \n295 _0", "N/A \nN/A _0\n244 \n244 _0", "N/A _1\nN/A _2\n83 _0\n82 ", "1,419,240 _0\n773,400 \n2,182 _0\n2,167 ", "Parameter \nQuantity \nUnits \nBoundary/ Protocol ", "Natural Gas Consumption: \n14.2 \nMillion Therms \nWorldwide occupied properties / Apple Internal Protocol ", "Electricity Consumption: \n2,182 _1\nMillion kilowatt hours (mkWh) \nWorldwide occupied properties / Apple Internal Protocol _0", "Renewable Energy _1\n2,166 \nMillion kilowatt hours (mkWh) _0\nWorldwide / Invoiced quantities amp; self-generated ", "Scope 1 GHG Emissions \n54,600 \nmetric tons of carbon dioxide equivalent (tCO2e) \nWorldwide occupied properties / WRI/WBCSD GHG Protocol ", "Scope 2 GHG Emissions (Location-Based) \n776,500 \ntCO2e \nWorldwide occupied properties / WRI/WBCSD GHG Protocol _0", "Scope 2 GHG Emissions (Market-Based) \n8,700 \ntCO2e _0\nWorldwide occupied properties / WRI/WBCSD GHG Protocol _1", "Scope 3 GHG Emissions – Business Travel \n337,300 \ntCO2e _1\nWorldwide occupied properties / WRI/WBCSD GHG Protocol Value Chain (Scope 3) ", "Scope 3 GHG Emissions – Employee Commute \n183,200 \ntCO2e _2\nWorldwide occupied properties / WRI/WBCSD GHG Protocol Value Chain (Scope 3) _0", "Water Withdrawal \n1,300 \nMillion gallons \nWorldwide occupied properties / Apple Internal Protocol _1", "Trash disposed in Landfill \n16,600 \nMetric tonnes \nWorldwide occupied properties / Apple Internal Protocol _2", "Hazardous Waste (Regulated waste) \n2,800 \nMetric tonnes _0\nWorldwide occupied properties / Apple Internal Protocol _3", "Recycled Material (Removal by recycling contractor) \n49,200 \nMetric tonnes _1\nWorldwide occupied properties / Apple Internal Protocol _4", "Composted Material \n4,700 \nMetric tonnes _2\nWorldwide occupied properties / Apple Internal Protocol _5", "Waste to Energy \n500 \nMetric tonnes _3\nWorldwide occupied properties / Apple Internal Protocol _6", "Paper _0\n1,300 _0\nMetric tonnes _4\nWorldwide occupied properties / Apple Internal Protocol _7", "Parameter _0\nQuantity _0\nUnits _0\nBoundary/ Protocol _0", "Clean Energy Use \n4.12 \nMillion megawatt hours (mMWh) \nApple suppliers / Apple Internal Protocol ", "Avoided GHG Emissions \n3.53 \nMillion metric tons of carbon dioxide equivalent (mMtCO2e) \nApple suppliers / Apple Internal Protocol _0", "Operational Capacity \n1,950 \nMegawatts (MWac) \nApple suppliers / Apple Internal Protocol _1", "\n Climate Change Resources Smarter Chemistry Better Together\n\n Introduction Climate Change Resources Smarter Chemistry Better Together_68\nNote: Manufacturing, Product use, Product transport, and End of life are Scope 3 emissions. Corporate facilities includes Scope 1 and 2 emissions, in addition to Scope 3 emissions associated with employee commute and business travel. All emissions data is detailed in Appendix A. \n\n Introduction Climate Change Resources Smarter Chemistry Better Together_69", "LI", "Link_0\nLBody_0", "LI_2", "LBody_10\nLBody_11\nLBody_12", "\n Introduction Climate Change Resources Smarter Chemistry Better Together_3\nApple Park, our newest corporate headquarters, obtains about 75 percent of its power from onsite fuel cells and rooftop solar PV panels. \n\n Introduction Climate Change Resources Smarter Chemistry Better Together_4", "LI_3", "LBody_13\nLBody_14\nLBody_15", "The WRI Greenhouse Gas Protocol defines the methodology for calculating carbon emissions. \nScope 1 emissions are those greenhouse gases resulting from fuel combustion from sources we own or operate—like vehicles or natural gas for heating. \nScope 2 emissions refer to those resulting from use of electricity. Renewable energy generates minimal Scope 2 emissions, whereas burning coal, oil, or natural gas to produce electricity releases carbon dioxide and other greenhouse gases into the atmosphere. ", "LBody_42\nLBody_43\nLBody_44", "LI_16", "LBody_53\nLBody_54\nLBody_55", "A more energy efficient supply chain. \nIn 2015, we started engaging directly with suppliers to help them reduce their energy use. We aim to educate them about energy efficiency, identify energy efficiency project opportunities, and manage those projects to completion. We prioritize facilities with the highest energy use and potential for improvement. Then we conduct energy audits and train suppliers to uncover opportunities for energy efficiency—like replacing outdated or inefficient heating, cooling, and lighting systems; repairing compressed air leaks; and recovering waste heat. The assessments provide suppliers with a cost-benefit analysis for implementing energy efficiency improvements. \nSince the inception of this program in 2015, we have engaged 59 suppliers at 85 facilities. In 2018, our program implemented energy efficiency measures that prevented 466,000 metric tons of CO₂e from entering the atmosphere. ", "Our Approach _0\nMaking the most of limited resources. \nMany resources are finite, and even those that are bio-based need to be managed in a way that makes them renewable. Whether it’s materials in our products or packaging, waste generated at our own facilities and in our supply chain, or water that we use to operate our buildings, deliver services, and make products, our commitment remains the same: to protect and conserve these precious resources. ", "LBody_74\nLBody_75\nLBody_76", "LI_27", "LBody_82\nLBody_83\nLBody_84", "LI_28", "LBody_85\nLBody_86\nLBody_87", "LI_29", "LBody_88\nLBody_89\nLBody_90", "At Apple’s onsite environmental testing lab, chemists assess products for harmful chemicals. \nWith information collected from the environmental testing laboratory, and the FMD and chemical mapping programs, we can then generate comprehensive toxicology assessments. This includes GreenScreen®, which considers 18 criteria to help us understand the materials’ effects on people’s health and the environment. We also have in-house, board-certified toxicologists who use lab testing and computer modeling to create toxicological profiles that previously didn’t exist—addressing a major challenge in this field. Only materials that pass our rigorous review process are accepted for our products. \nWe’re just as committed to the safety of the people who make our products. We require our suppliers to follow the standards set in our RSS. In 2014, we launched our Chemical Management Program to help suppliers develop a comprehensive approach to managing chemicals safely. The program, which has grown to 113 participating supplier facilities, enables our partners to shift to safer chemicals and improve general safety, awareness, and training. And to help drive toward safer chemicals, we map chemicals use and screen them using GreenScreen® to assess the safety of cleaners and degreasers used at supplier final assembly facilities. ", "Appendix A \nApple’s Operations: Environmental Data \n\n Facilities Environmental Performance Indicators (Page 56) Product Environmental Performance Indicators (Page 57) Scopes 1 and 2 Carbon Emissions Breakdown (Page 58) Natural Gas and Electricity Use (fiscal year 2018) (Page 59)", "Product Environmental Performance Indicators _0\nThe following table summarizes the environmental performance indicators relating to Apple’s products—including the life cycle greenhouse gas emissions associated with the manufacturing, transportation, use, and end of life of our products. In fiscal year 2018, we sold 217,722,000 iPhone devices, 43,535,000 iPad units, and 18,209,000 Mac products.1 \nWe also publish individual product environmental reports for all of our products. These are available at \n www.apple.com/environment", "33% \nApple’s Biogas Fuel Cells \n24% ", "lt;1% \nNC GreenPower (100% solar) \n14% ", "110,910 \n2018 Effective Emissions (mtons CO₂e/year) \n0 _1", "15% \nOregon Solar (via Direct Access) \ngt;99% ", "74,706 \n2018 Effective Emissions (mtons CO₂e/year) _0\n0 _2", "78,760 \n2018 Effective Emissions (mtons CO₂e/year) _1\n0 _3", "7,570 \n2018 Effective Emissions (mtons CO₂e/year) _2\n0 _4", "49,330 \n2018 Effective Emissions (mtons CO₂e/year) _3\n0 _5", "Our colocation facilities \nThe majority of our online services are provided by our own data centers; however, we also use third-party colocation facilities for additional data center capacity. While we don’t own these shared facilities and use only a portion of their total capacity, we include our portion of their energy use in our renewable energy goals. Starting January 2018, 100 percent of our power for colocation facilities was matched with renewable energy generated within the same state or NERC region for facilities in the United States, or within the same country or regional grid for those around the world. As our loads grow over time, we’ll continue working with our colocation suppliers to match 100 percent of our energy use with renewables. \nFurthermore, we worked with one of our main suppliers of colocation services to help it develop the capability to provide renewable energy solutions to its customers. This partnership advances Apple’s renewable energy program and those of other companies that use this colocation provider. ", "Appendix C \nAssurance and Review Statements \n\n Bureau Veritas: Facilities energy, carbon, waste, paper, and water data (Pages 70–72) Fraunhofer Institute: Product life cycle carbon footprint (Pages 73–76) Bureau Veritas: Supplier clean energy program (Pages 77–79) Fraunhofer Institute: Comprehensive fiber footprint (Pages 80–82) Fraunhofer Institute: Packaging plastic footprint (Pages 83–85)", "LI_31", "LBody_95\nLBody_96\nLBody_97", "LI_35", "LBody_106\nLBody_107\nLBody_108", "LI_36", "LBody_109\nLBody_110\nLBody_111", "LI_37", "LBody_112\nLBody_113\nLBody_114", "LI_38", "LBody_115\nLBody_116\nLBody_117", "LI_39", "LBody_118\nLBody_119\nLBody_120", "LI_41", "LBody_125\nLBody_126\nLBody_127", "KPI \nUnit \nFiscal Year ", "Greenhouse Gas Emissions \nScope 1 Natural gas, diesel, propane2 Fleet vehicles Process emissions3 Scope 24 Scope 35 Business travel6 Employee commute7 Total facilities emissions (Scopes 1, 2, 3) \nmetric tons CO₂e ", "Energy Use \nElectricity U.S. International \nmillion kWh ", "Energy Efficiency8 \nElectricity saved per year as a result of energy efficiency measures\n kWh/year ", "Water Use \nTotal Data centers11 Retail Corporate12 \nmillion gallons ", "Waste Generation13 \nLandfilled Recycled Composted Hazardous waste Waste to energy14 \npounds ", "10 0 \n1,510 0 \n683 0 ", "7,778 N/A \n6,923 N/A \n6,400 N/A ", "Location _1\nNatural Gas _0\nElectricity ", "11,840 \n15 \n15 _0", "6,090 \n54 \n54 _0", "25,410 \n22 \n22 _0", "16,730 \n16 \n16 _0", "630 _0\n16 _1\n16 _2", "3,830 \n29 \n29 _0", "34,530 \n105 \n92 ", "460 _0\n252 \n252 _0", "260 \n104 \n104 _0", "80,820 51,160 29,660 \n195 96 99 \n194 96 98 ", "Total Energy Use (kWh) _0\nRenewable Energy (kWh) _0\nPercent Renewable Energy ", "244,376,400 \n244,376,400 _0\n100% _0", "30,831,400 \n30,114,500 \n98% _0", "52,456,000 \n52,368,800 \n100% _1", "327,663,800 _0\n326,859,700 \n99.8% _0", "2019 Progress Report, covering fiscal year 2018 \nApple developed a new alloy that enables us to use 100 percent recycled aluminum without compromising quality. ", "Link_1", "Our Environmental Strategy \n• 2018 Highlights ", "\n 6 Climate Change\n\n 22 Resources", "We’ve embarked on a bold mission to make products without taking from the Earth. Getting there requires focus and innovation in three key areas: \nClimate change: We take responsibility for the emissions associated with our own operations, as well as the entire lifecycle of all our products and accessories. Resources: We believe in conserving Earth’s resources when operating our facilities and making our products. Smarter chemistry: We believe that our products should be safe for anyone who assembles, uses, or recycles them. ", "Component reductions \nProduct energy efficiency ", "In the last year, we’ve reduced emissions \nIn 10 years, we’ve reduced average ", "from aluminum in our products by 45%. \nproduct energy use by 70%.4 ", "Apple’s overall carbon footprint (fiscal year 2018) \nApple calculates its life cycle carbon footprint to understand where to focus reduction efforts. ", "In fiscal year 2018, we reduced our comprehensive carbon footprint for the third year in a row—down 35 percent compared to 2015. A major contributor to the decrease was Apple’s Supplier Clean Energy Program, which lowered our carbon footprint by nearly 3.6 million metric tons compared to last year. We also made several product design changes that reduced our carbon footprint, like sourcing aluminum made with hydroelectricity and recycled content, improving product energy efficiency, and redesigning integrated circuits to use less silicon. Together, these product design changes resulted in 4.8 million fewer metric tons of carbon emissions compared to last year. \nHistorically, Apple’s carbon footprint has paralleled its financial performance. However, beginning in 2015, our environmental work has driven down our carbon emissions, even as revenue has increased. ", "Since 2017, we have been procuring renewable energy in new markets that we only recently entered or in which we have small loads—like India, Turkey, Israel, Brazil, Mexico, and Taiwan— to cover our loads in those and neighboring countries. And as we continue to grow our global operations, we’ll continue building projects in new markets. \nFor example, in Taiwan we worked with a local partner to build a rooftop PV system and secured a long-term contract for Apple to own the project’s renewable energy certificates. We will verify our purchase by using Taiwan’s newly created T-REC tracking system. ", "As renewable energy markets around the world evolve and the technology becomes more cost-competitive, we’re looking to develop projects without the government subsidies that were designed to encourage development of renewable energy. This will enable us to retain ownership of the renewable energy credits of projects we invest in. In Denmark we contracted for a new wind farm and a 42-megawatt solar PV project—one of Denmark’s largest—using a commercially backed contract-for-difference power purchase agreement, the first of its kind in Denmark. \nIn China, we’re working to create cost-competitive, subsidy-free renewable energy solutions for our facilities and suppliers. To encourage this transition, we supported China’s voluntary REC market with the largest purchase to date, and kept our retail stores and corporate offices at 100 percent renewable in the process. ", "LI_4", "LBody_16\nLBody_17", "4 GW \nBy 2020, Apple and our suppliers will generate or procure at least 4 gigawatts of clean energy in our supply chain. As of April 2019, we already have commitments far exceeding our goal. ", "H6_8\nP_32", "For more information on how our suppliers are fulfilling their renewable energy commitments, \n\n download the Program Update (PDF)", "• Goertek \n• Quadrant ", "• Golden Arrow \n• Quanta Computer ", "• H.B. Fuller \n• RRD ", "• Hon Hai Precision \n• RyPax ", "Industry \n• SanHuan ", "• Ibiden \n• SDK ", "• Jabil \n• Solvay ", "• LEALEA Enterprise \n• STMicroelectronics ", "• Lens Technology \n• Sunway Communication ", "• Lishen \n• Sunwoda Electronics ", "• Luxshare-ICT \n• Taiyo Ink Mfg. Co. ", "• Mega Precision \n• tesa SE ", "• Nidec \n• TSMC ", "• Pegatron \n• Wistron ", "• Primax Group \n• Yuto ", "LI_7", "LBody_30\nLBody_31", "LI_9", "LBody_38\nLBody_39", "LI_13", "manufacturing as a part of Apple’s Supplier Clean Energy Program; \nLBody_45", "LI_14", "LBody_46\nLBody_47", "Daisy, Apple’s line of disassembly robots, can now disassemble 15 models of iPhone, recovering more of the important materials stored inside. \nResources ", "24 \nLink_14", "25 \nLink_15", "36 \nLink_16", "37 \nLink_17", "Material recovery lab \nRecycled tin ", "We’re partnering with industry \nWe expanded, to 11 products, our use ", "experts and academia to further \nof 100% recycled tin in the solder on ", "expand innovation around recycling \nmain logic boards. ", "•Steel \nLBody_77", "• Tantalum \nLBody_78", "• Tin \nLBody_79", "•Tungsten \nLBody_80", "• Zinc \nLBody_81", "Since 2017, 100 percent of supplier assembly sites have adopted safer cleaners and degreasers with our help. \nSmarter Chemistry ", "45 \nLink_18", "46 \nLink_19", "46 _0\nLink_20", "48 \nLink_21", "of PVC in product from display \nPhthalates with Eliminated ", "We partnered with Conservation International to protect a 27,000 acre mangrove forest in Colombia and develop a new methodology for quantifying the “blue carbon” that mangroves sequester underwater. \nBetter Together ", "Facilities Environmental Performance Indicators _0\nThe following table summarizes environmental performance indicators relating to Apple’s global facilities, including our data centers, corporate offices, and over 500 retail stores, together occupied by 132,000 Apple employees.1 ", "propane gas use in corporate offices. \n3 Emissions from Ramp;D processes. ", "Natural Gas and Electricity Use (fiscal year 2018) \nThe chart below provides a detailed breakdown of fiscal year 2018 energy use, which we used to calculate our greenhouse gas emissions. ", "Apple Actual Renewable Energy Use Apple’s Solar Projects \n38% ", "Duke Green Source Rider (100% solar) \n12% ", "Other Solar Contracts \n12% _0", "Apple Actual Renewable Energy Use Apple’s Micro-hydro Projects \nlt;1% _0", "LI_32", "LBody_98\nLBody_99", "\n Introduction Climate Change_0\nBUREAU VERITAS NORTH AMERICA INDEPENDENT ASSURANCE STATEMENT _0", "forests \nforests to cover all of the virgin ", "3,490 \n2,540 ", "Natural gas U.S. International \nmillion BTU ", "Natual gas saved per year as a result of energy efficiency measures \ntherms/year ", "Renewable Energy _0\nRenewable energy sourcing (fiscal year)9 ", "Emissions avoided as a result of renewable energy sourcing (fiscal year)10 \nmetric tons CO₂e _0", "1,105,100 \n645,000 ", "lt;1% _1\nlt;1% _2", "Safer materials Arsenic5 PVC6 Beryllium Mercury Lead7 Brominated flame retardants (BFRs)8 \nRemoved from glass by 2008 PVC-free AC power cord available in all regions except India, Thailand, and South Korea Eliminated from all new product designs. Beryllium is found in copper alloys used to make connectors and springs Eliminated in display 2009 Phased out of display glass and solder in 2006 Eliminated from thousands of parts since 2008 ", "— 0 \n— 0 _0", "Business fleet _0\n7,214 N/A ", "114 \n114 _0", "253 \n253 _0", "4 \n4 _0", "54% \n99% ", "We’re reducing our impact on climate change by using clean power sources and driving energy \nLink_26", "efficiency in our operations. The electricity at all of our facilities worldwide, including every Apple office, store, and data center, comes from 100 percent renewable energy—a standard we have \nLink_27", "maintained, even as we continue to grow. And we’re doing even more to transition our suppliers to \nLink_28", "100 percent renewable energy and make our products of low-carbon materials. \nLink_29", "Environmental ResponsibilityReport ", "Contents ", "Link", "3 Introduction ", "LBody", "Letter from Lisa Jackson ", "Link_2", "43 Smarter Chemistry ", "LBody_1", "Facilities Environmental Performance Indicators ", "LBody_2", "Product Environmental Performance Indicators ", "LBody_3", " Scopes 1 and 2 Carbon Emissions Breakdown ", "LBody_4", " Natural Gas and Electricity Use (fiscal year 2018) ", "\n Apple’s Operations: Environmental Data", "Link_7", "60 Appendix B ", "\n Facilities Renewable Energy Supplement", "Link_8", "69 Appendix C ", "LBody_5", " Facilities energy, carbon, waste, and water data (Bureau Veritas) ", "LBody_6", "Product life cycle carbon footprint (Fraunhofer Institute) ", "LBody_7", "Supplier clean energy program (Bureau Veritas) ", "LBody_8", "Fiber footprint (Fraunhofer Institute) ", "LBody_9", " Packaging plastic footprint (Fraunhofer Institute) ", "\n Assurance and Review Statements", "Taking bigsteps towarda smaller footprint. ", "\n Introduction", "Historical carbon footprint ", "Local displacement. We seek to displace more-polluting forms of energy in the same electric grid region as our facilities. We accomplish this by having Apple-created projects deliver into the grid as much renewable energy as our facilities take from it. In difficult renewable energy markets where our needs are less than 0.5 percent of our total energy use, we seek a renewable energy solution in the broader geographic region. ", "Materiality. We want our involvement in a renewable energy project to be a driving force to getting it built. That might mean providing needed financial support or helping the project overcome regulatory barriers. With the rapidly changing policy dynamics in some of our key countries, we’re adapting our framework to continue to comply with local laws and regulations and to yield the most positive and real energy transformation. ", "Accountability. We apply rigor in measuring and tracking our energy supply resources and use third-party registries such as WREGIS and NC-RETS, certification programs such as Green-e Energy, and contractual provisions to ensure that only Apple takes credit for the renewable energy it generates or procures. When no such system exists, we work with industry partners and governmental entities to create them. ", "Apple pursues the strongest possible renewable solution in all markets where we operate. We stress a regional approach, with long-term energy contracts from new projects we help create. The following three principles guide this strategy: ", "Powering all our facilities with 100% renewable energy. ", "600+MW ", "Direct ownership. Where feasible, we source our own renewable energy by building our own projects, including solar, wind, biogas fuel cells, and low-impact hydro projects. ", "Equity investment. In some markets, we invest capital to become part owner of new solar PV or wind projects and match that renewable generation with our energy use. ", "Long-term renewable energy contracts. At other times, we sign long-term contracts for renewable energy in order to support new, local projects that meet our robust renewable energy sourcing principles, primarily solar PV and wind projects. ", " We first focus on energy efficiency to reduce the total electricity we use, then source renewables for our remaining needs. We create new renewable energy projects whenever possible. As of January 2019, approximately 66 percent of the renewable energy Apple uses comes from projects that Apple created. And we aim to soon cover our entire electricity load with Apple-created projects. We use three contracting structures to do this. ", "How we’re staying at 100%. ", "To get to—and stay at—100 percent renewable energy for the electricity at our global facilities, we’ve implemented new approaches to securing renewable energy: We’ve expanded into new markets, we’re leveraging large projects to increase others’ access to renewable energy, and we’re investing in projects without support of government subsidies. ", "New markets. ", "Aggregation. ", "We’re investing in large-scale renewable energy projects in the Great Lakes and mid-Atlantic regions totaling 245 megawatts of generation: an Illinois wind farm and a Virginia solar PV array. These projects will cover our electricity use at our retail stores and offices on the East Coast, as well as co-located data facilities in Chicago, Illinois, and Ashburn, Virginia. In addition, we’ve directly helped other companies access the same high-quality renewables that Apple is procuring. By working with others, we can help open the renewable energy market to companies of all sizes and accelerate the pace of new renewable generation. ", "Subsidy-free projects. ", "\n Introduction Climate Change Resources Smarter Chemistry Better Together", "We’ve significantly reduced our emissions. ", "Our transition to renewable energy has reduced our Scope 1 and 2 emissions by 64 percent since 2011, preventing over 2.8 million metric tons of CO₂e from entering the atmosphere. That’s equivalent to taking more than 590,000 cars off the road for one year.14 ", "Apple’s emissions since 2011 (Scopes 1 and 2) ", " avoided: Total emissions avoided due to its use of renewable energy ", " emissions: Emissions after accounting for Apple’s renewable energy program ", "0 ", "\n Introduction Climate Change Resources Smarter Chemistry Better Together", "\n Introduction Climate Change Resources Smarter Chemistry Better Together", "$300 Mil", "Apple’s role. ", "Apple supports supplier transitions to clean energy. We work with them to advocate for policy change in key markets. We connect suppliers with high-quality clean energy projects and developers. And we educate them on how they can take full advantage of the benefits of clean energy. ", "Demonstrating leadership. ", "The transition to renewable energy can be highly complex. It often requires complicated deal structures across many regions, each with their own statutory and regulatory requirements. We gained invaluable experience by meeting our own 100 percent renewable energy goal in 43 countries, and we’re using that expertise to help develop nearly 500 megawatts of solar and wind projects in China and Japan. These projects are addressing upstream emissions in our supply chain as well as demonstrating our commitment to the Supplier Clean Energy Program. ", "\n Introduction Climate Change Resources Smarter Chemistry Better Together", "Supplier Progress Report ", "Educating partners. ", "We share our learnings with our supplier partners and help them plot their transition to renewable energy. In 2017, Apple developed the Clean Energy Portal, an online platform to help suppliers identify commercially viable renewable energy solutions in regions around the world. We continue to add new content, including policy guidance and financial analysis tools, intended to make adoption of clean energy in key markets even easier. Over 100 suppliers have registered for the site. ", "Advocating for strong policy. ", "Supplier progress. ", "Partners across our supply chain are installing or investing in sizable solar projects and purchasing clean energy directly from renewable projects or from their utility. As of April 2019, 44 manufacturing partners in 16 countries have committed to 100 percent renewable energy ", "for Apple production: ", "• Advanced International ", "Multitech ", "• Arkema ", "• ATamp;S ", "• Bemis Associates ", "• Biel Crystal (HK) ", "Manufactory Ltd. ", "• BOE ", "• Catcher Technology ", "• Compal Electronics ", "• Corning Incorporated ", "• COSMO ", "• DSM Engineering Plastics ", "• ECCO Leather ", "• Fastway Creation ", "• Finisar ", "• Qorvo ", "\n Introduction Climate Change Resources Smarter Chemistry Better Together", "Apple and supplier-created long-term renewable energy projects. ", "Our program initially moved beyond a strictly compliance focus in the late 1990s, when we started to phase out PVC from our packaging. The scope and depth of our work has significantly expanded since ", "To model the manufacturing phase, we use part-by-part measurements of the entire product along with data on part production. The measurements help us accurately determine the size and weight of the components and materials in the product, while data on manufacturing processes and yield loss during production allows us to account for the impact of manufacturing. The LCA includes accessories, packaging, and units that are repaired and replaced through AppleCare. ", "To model customer use, we measure the power consumed by a product while it is running in a simulated scenario. Daily usage patterns are specific to each product and are a mixture of actual and modeled customer use data. For the purposes of our assessment, years of use, which are based on first owners, are modeled to be four years for macOS and tvOS devices and three years for iOS and watchOS devices. Most Apple products last longer and are passed along, resold, or returned to Apple by the first owner for others to use. More information on our product energy use is provided in our Product Environmental Reports. ", "To model transportation, we use data collected on shipments of single products and multipack units by land, sea, and air. We account for transporting materials between manufacturing sites; transporting products from manufacturing sites to regional distribution hubs; transporting products from regional distribution hubs to individual customers; and transporting products from final customers to recycling facilities. ", "To model recycling, we use material composition data on our products and cover the treatment steps carried out by the recycler to obtain metal, plastic, and glass material streams. Subsequent processing and remelting steps are not included, as these are considered stages of production and not end-of-life processing. ", "After we collect data about production, use, transport, and recycling, we combine it with detailed greenhouse gas emission data. This emission data is based on a combination of Apple-specific and industry-average datasets for material production, manufacturing processes, electricity generation, and transportation. Renewable energy used in the supply chain, initiated by suppliers independently or through the Apple Supplier Clean Energy Program, are also accounted for. Combining product-specific data with emission data in our LCA tool allows us to compile detailed results for greenhouse gas emissions as they relate to the product. The data and modeling approaches are checked for quality and accuracy by the Fraunhofer Institute in Germany. ", "Overview of Apple’s product life cycle carbon assessment (LCA) methodology ", "Energy: Direct (Million Therms) and Indirect (Million kilowatt hours (mkWh)) ", "Renewable Energy (mkWH) ", "Water Withdrawal (Million Gallons) ", "Greenhouse Gas (GHG) Emissions: Direct Scope 1 emissions by weight, Indirect Scope 2 emissions by weight, Indirect Scope 3 emissions by weight (Employee Commute and Business Travel) (Metric Tonnes of Carbon Dioxide equivalent) ", "Waste Quantities and Disposition (Metric Tonnes) ", "Paper Quantities (Metric Tonnes) ", "Appropriateness and robustness of underlying reporting systems and processes, used to collect, analyze, and review the environmental information reported; ", "• Assurance of select environmental data and information included in the Report for the fiscal year 2018 reporting period (October 1, 2017 through September 29, 2018), specifically, in accordance with Apple’s definitions and World Resources Institute (WRI)/World Business Council for Sustainable Development (WBCSD) Greenhouse Gas Protocol: ", "Text or other written statements associated with the Report ", "Activities outside the defined assurance period ", "Excluded from the scope of our work is any assurance of information relating to: ", "Site visits to Apple facilities in Mesa, Arizona; Cork, Ireland; Shanghai, China; and Singapore. ", "Visit to Apple corporate offices in Cupertino, California; ", "Interviews with relevant personnel of Apple; ", "Review of internal and external documentary evidence produced by Apple; ", "Audit of environmental performance data presented in the Report, including a detailed review of a sample of data against source data; and ", "Review of Apple information systems for collection, aggregation, analysis and internal verification and review of environmental data. ", "BVNA undertook the following activities: ", "The Energy, Water, Waste, Paper, and Scope 1, 2 amp; 3 GHG Emissions assertions shown above are materially correct and are a fair representation of the data and information; and ", "Apple has established appropriate systems for the collection, aggregation and analysis of relevant environmental information, and has implemented underlying internal assurance practices that provide a reasonable degree of confidence that such information is complete and accurate. ", "Based on the assurance process and procedures conducted, we conclude that: ", "LBody_40", "Methodology for tracking and verifying supplier clean energy contributions, including the Energy Survey, Renewable Energy Agreement, and other forms of supporting documentation provided by suppliers where available; ", "LBody_41", "Assurance of Clean Energy Program data and information for the fiscal year 2018 reporting period (October 1, 2017 through September 29, 2018), specifically, in accordance with Apple’s definitions: ", "Energy: Reported megawatt-hours (MWh) of clean energy attributed to the Clean Energy Program for suppliers; ", "Avoided Greenhouse Gas (GHG) emissions associated with clean energy attributed to the Clean Energy Program; ", "Appropriateness and robustness of underlying reporting systems and processes, used to collect, analyze, and review the information reported; ", "Operational Capacity in megawatts (MWac) of clean energy in support of Apple ", "Apple requested BVNA to include in its independent review the following: ", "Text or other written statements associated with the Report ", "Activities outside the defined assurance period ", "Excluded from the scope of our work is any assurance of information relating to: ", "Visit to Apple corporate offices in Cupertino, California; ", "Interviews with relevant personnel of Apple; ", "Review of internal and external documentary evidence produced by Apple; ", "Audit of reported data, including a detailed review of a sample of data against source data; and ", "Review of Apple information systems for collection, aggregation, analysis and internal verification and review of environmental data. ", "BVNA undertook the following activities: ", "Are not materially correct; ", "Are not a fair representation of the stated information; and ", "Have not been prepared in accordance with Apple’s stated protocols for their Clean Energy Program. ", "Based on the assurance process and procedures conducted, there is no evidence that the assertions for Clean Energy Consumption, Avoided GHG Emissions, and Operational Capacity shown above: ", "Life Cycle Assessment course and exam as part of the Environmental Engineering studies (Dipl.-Ing. Technischer Umweltschutz, Technische Universität Berlin, 2009) ", "Critical Reviews of LCA studies incl. water, fiber and plastic footprints since 2012 for 2 industry clients and of the EPEAT Environmental Benefits Calculator ", "Life Cycle Assessment of a modular smartphone (Fairphone 2) ", "Studies on the environmental assessment and carbon footprint of ICT ", "Marina Proske: Experience and background in the field of Life Cycle Assessments include ", "Life Cycle Assessment course and exam as part of the Environmental Engineering studies (Dipl.-Ing. Technischer Umweltschutz, Technische Universität Berlin, 1999) ", "more than 100 Critical Reviews of LCA studies since 2005 (batteries, displays, mobile devices, networked ICT equipment, home automation devices, servers, desktop computers) for 5 different industry clients and of the EPEAT Environmental Benefits Calculator ", "Coordination of and contribution to compilation of more than 100 ELCD datasets (available at www.lca2go.eu; product groups: hard disk drives, semiconductors, printed circuit boards, photovoltaics) ", "Environmental Lifecycle Assessments following the MEEuP / MEErP methodology in several Ecodesign Product Group Studies under the European Ecodesign Directive since 2007 (external power supplies, complex settop-boxes, machine tools, welding equipment) ", "various environmental gate-to-gate assessments in research projects since 2000 (wafer bumping, ", "Karsten Schischke: Experience and background in the field of Life Cycle Assessments include ", "Life Cycle Assessment course and exam as part of the Environmental Engineering studies (Dipl.-Ing. Technischer Umweltschutz, Technische Universität Berlin, 2009) ", "Critical Reviews of LCA studies incl. water, fiber and plastic footprints since 2012 for 2 industry clients and of the EPEAT Environmental Benefits Calculator ", "Life Cycle Assessment of a modular smartphone (Fairphone 2) ", "Studies on the environmental assessment and carbon footprint of ICT ", "Marina Proske: Experience and background in the field of Life Cycle Assessments include ", "Life Cycle Assessment course and exam as part of the Environmental Engineering studies (Dipl.-Ing. Technischer Umweltschutz, Technische Universität Berlin, 1999) ", "more than 100 Critical Reviews of LCA studies since 2005 (batteries, displays, mobile devices, networked ICT equipment, home automation devices, servers, desktop computers) for 5 different industry clients and of the EPEAT Environmental Benefits Calculator ", "Coordination of and contribution to compilation of more than 100 ELCD datasets (available at www.lca2go.eu; product groups: hard disk drives, semiconductors, printed circuit boards, photovoltaics) ", "Environmental Lifecycle Assessments following the MEEuP / MEErP methodology in several Ecodesign Product Group Studies under the European Ecodesign Directive since 2007 (external power supplies, complex settop-boxes, machine tools, welding equipment) ", "various environmental gate-to-gate assessments in research projects since 2000 (wafer bumping, ", "Karsten Schischke: Experience and background in the field of Life Cycle Assessments include ", "Worldwide ", "United States ", "•Apple •Supplier ", "\n Introduction Climate Change", "Our Approach ", "Materials ", "Zero Waste ", "Water Stewardship ", "and disassembly. ", "Aluminum • Rare earth elements ", " Paper ", "Plastics ", " Cobalt ", "Copper ", "Glass ", " Gold ", "Lithium ", "We’re focusing our initial efforts on the following materials: ", "Designing and building products and packaging with recycled and renewable materials, and using materials more efficiently. ", "Making long-lasting products by designing highly durable hardware, creating a broad network of repair providers, and ensuring software compatibility with older models. ", "Collecting products through Apple Trade In to extend their life or recover their materials. ", "Our strategy is to create circular supply chains and reduce our impact on the planet’s resources by: ", "Privacy is protected. ", "Devices are recycled safely and responsibly. ", "Applicable regulations are followed. ", "We work closely with our recycling partners to help make sure: ", "losses that may occur during the recycling process. ** Includes a support plate, backglass, and housing band. ", "Increase responsible management of working forests in China—by creating up to 375,000 acres of FSC-certified forests. And improve the management of up to 640,000 acres. ", "Contribute to the improvement of China’s policy framework to encourage responsible forest management. ", "Help China establish long-term market incentives for responsibly sourced paper. ", "One year early, we achieved our 2020 goal of transitioning one million acres of forest across China to improved management. This is part of our five-year partnership with World Wildlife Fund, which is focused on three primary objectives: ", "Using water efficiently to reduce overall use. ", "Identifying alternative water sources, such as recycled and reclaimed water. ", "Discharging water responsibly to prevent pollution. ", "Expanding our water stewardship to keep watersheds healthy for all who rely on them. ", "To continue to improve our water use by our facilities and our suppliers, we focus on: ", "Freshwater use ", "Our Approach ", "Mapping and Engagement ", "Assessment and Management ", "Chemistry Innovation ", "A timeline of smarter chemistry ", "assembly sites adopted ", "safer chemicals and brominated ", "flame retardants ", "safer alternatives** beryllium ", "changes in global electricity grids. ", "⁵ Arsenic is present in minute quantities in some semiconductor devices. ", "substances where technically possible. ", "Apple uses five steps when conducting a product LCA. ", "Scopes 1 and 2 Carbon Emissions Breakdown (metric tons CO₂e) ", "— Indicates that the energy source is not yet online. ", "*** Emissions from Ramp;D processes. ", "* Beginning January 1, 2018, we reached 100 percent renewable energy. ", "Maiden, North Carolina 100% renewable since opening June 2010 ", "303 million kWh energy use in fiscal year 2018 ", "Duke Energy Default Grid Mix Nuclear 51% ", "Coal ", "Other 16% ", "Renewable ", "2018 Default Emissions (mtons CO₂e/year) ", "From Duke Energy Carolinas 2015 Statistical Supplement generation data ", "Actual fiscal year 2018 energy data ", "Prineville, Oregon 100% renewable since opening May 2012 ", "252 million kWh energy use in fiscal year 2018 ", "Pacific Power Default Grid Mix Coal 59% ", "Natural Gas ", "Other 9% ", "Renewable ", "17% ", "2018 Default Emissions (mtons CO₂e/year) ", "Link_22", "https://www.pacificpower.net/content/dam/pacific_power/ doc/About_Us/Rates_Regulation/Oregon/17645-37_OR_ LabelingInsert_LrgBiz_F.pdf ", "Actual fiscal year 2018 energy data _0", "Reno, Nevada 100% renewable since opening December 2012 ", "253 million kWh energy use in fiscal year 2018 ", "NV Energy—North Default Grid Mix Natural Gas 58% ", "Apple Actual Renewable Energy Use Apple’s Solar Projects (via the 100% Nevada Green Rider program) ", "Coal ", "16% ", "Large Hydro 8% ", "Other ", "2% ", "Renewable 16% ", "2018 Default Emissions (mtons CO₂e/year) ", "Link_23", "https://www.nvenergy.com/publish/content/dam/ nvenergy/bill_inserts/2019/01_jan/power-content-insertsouth-2019-01_03_31.pdf ", "Actual fiscal year 2018 energy data ", "Newark, California 100% renewable since January 2013 ", "114 million kWh energy use in fiscal year 2018 ", "Pacific Gas amp; Electric Default Grid Mix Natural Gas 20% ", "Apple Actual Renewable Energy Use Bundled Solar (via Direct Access) 100% ", "Nuclear ", "27% ", "Large Hydro 18% ", "Unspecified ", "2% _0", "Renewable 33% ", "2018 Default Emissions (mtons CO₂e/year) ", "Link_24", "https://www.energy.ca.gov/pcl/labels/2017_labels/PG_ and_E_2017_PCL.pdf ", "Actual fiscal year 2018 energy data ", "Mesa Arizona 100% renewable since opening March 2017* ", "104 million kWh energy use in fiscal year 2018 ", "Salt River Project Default Grid Mix Coal 53% ", "Apple Actual Renewable Energy Use Apple’s Solar Project 100% ", "Nuclear ", "18% ", "Natural Gas/Other 17% ", "Renewable ", "12% _1", "2018 Default Emissions (mtons CO₂e/year) ", "Link_25", "www.srpnet.com/about/stations/pdfx/2014irp.pdf ", "Actual fiscal year 2018 energy data ", "Beyond the use of our own data centers and colocation facilities, we also use third-party computing services to support some of our on-demand cloud storage-based services. We are requiring these suppliers to adopt a 100 percent renewable energy strategy for their Apple energy use. ", "BUREAU VERITAS NORTH AMERICA INDEPENDENT ASSURANCE STATEMENT ", "Methodology ", "Our Findings ", "March 22, 2019 ", "The system, boundaries and functional unit are clearly defined ", "Assumptions and estimations made are appropriate ", "Selection of primary and secondary data is appropriate and methodologies used are adequately disclosed ", "Manufacturing Transportation Product Use Recycling ", "is not materially correct and is not a fair representation of GHG data and information, and ", "has not been prepared in accordance with the related International Standard on GHG quantification, monitoring and reporting. ", "Sales data for FY2018, including accessories and including AppleCare, Apple's extended warranty and technical support plans for their devices. ", "Product specific data on transportation including breakdown of air and sea shipment ", "Life cycle GHG emissions for all products, differentiating the actual product configurations (e.g. memory capacity) ", "Calculation methodology for the comprehensive carbon footprint and methodological changes implemented in 2018 ", "The total carbon footprint – scope 3 for the fiscal year 2018 ", "LBody_105", "Detailed analysis of the comprehensive carbon footprint including: ", "The breakdown of the carbon footprint into life cycle phases manufacturing, transportation, product use and recycling ", "Detailed product specific split into life cycle phases ", "The contribution of individual products and product families to the overall carbon footprint ", "Are product LCAs referenced correctly? ", "Are results for products, for which no full LCA review was undertaken, plausible? ", "Are carbon emission data for individual products plausible in the light of methodological changes as indicated by Apple? ", "Our Findings ", "March 22, 2019 ", "1 Summary ", "The system boundaries are clearly defined ", "Assumptions and estimations made are appropriate ", "Use of supplier data is appropriate and methodologies used are adequately disclosed ", "Calculation methodology for the corporate fiber footprint ", "Sales data for FY2018, including accessories ", "Aggregated fiber data for all products and the total corporate fiber footprint for the fiscal year 2018 ", "1 Summary ", "The system boundaries are clearly defined ", "Assumptions and estimations made are appropriate ", "Use of supplier data is appropriate and methodologies used are adequately disclosed ", "Total Plastic ", "Calculation methodology for the corporate packaging plastic footprint ", "Sales data for FY2018, including accessories ", "Selected product and supplier specific data on packaging materials and production yields ", "Aggregated packaging plastic data for all products and the total corporate packaging plastic footprint for the fiscal year 2018 ", " This report is published annually in April and covers fiscal year 2018 activities, unless otherwise noted. ", "This report addresses environmental impacts and activities at Apple-owned facilities (corporate offices, data centers, and retail stores), as well as the life cycle impacts of our products, including in the manufacturing, transportation, use, and end-of-life phases. ", "To provide feedback on this report, please contact environment-report@apple.com. ", "Report Notes ", "paper we use in our packaging ", "Landfill diversion rate ", "Scope 3 - Life cycle greenhouse gas emissions (metric tons CO₂e)2,3 ", "Manufacturing ", "Product transportation ", "Product use ", "End of life4 ", "Packaging fiber footprint (metric tons) ", "Recycled fiber ", "Responsibly sourced virgin fiber ", "Other virgin fiber ", "Packaging plastics footprint ", "Corporate ", "Cupertino, CA ", "Elk Grove, CA ", "Austin, TX ", "Other U.S. ", "Cork, Ireland ", "Singapore ", "China ", "Other International ", "Data centers ", "Maiden, NC ", "Newark, CA ", "Prineville, OR ", "Reno, NV ", "Mesa, AZ ", "Viborg, Denmark ", "Colocation facilities (U.S.)** ", "Colocation facilities (International)** ", "Retail stores U.S. International ", "Business fleet ", "Process emissions*** ", "Other Scope 1 (Diesel, Propane, fugitive emissions) ", "Totals ", "Corporate ", "Cupertino, CA ", "Elk Grove, CA ", "Austin, TX ", "Other U.S. ", "Cork, Ireland ", "Singapore ", "China ", "Other International ", "Data centers ", "Maiden, NC ", "Newark, CA ", "Prineville, OR ", "Reno, NV ", "Retail stores Domestic (U.S.) International ", "Totals ", "Fiscal Year 2018 ", "Corporate ", "Cupertino, CA ", "Elk Grove, CA ", "Austin, TX ", "Other U.S. ", "Cork, Ireland ", "Singapore ", "China ", "Other International ", "Data centers ", "Maiden, NC ", "Newark, CA ", "Prineville, OR ", "Reno, NV ", "Mesa, AZ ", "Viborg, Denmark ", "Colocation Facilities (USA)** ", "Colocation Facilities (International)** ", "Retail stores Domestic (U.S.) International ", "Totals ", "Percent renewable* ", "FY2011 ", "FY2012 ", "FY2013 ", "FY2014 ", "FY2015 ", "FY20164 ", "FY2017 ", "FY2018 ", "U.S. ", "Europe ", "APAC ", "FY2018 Total ", "Climate Change ", "8 ", "Our Approach ", "9 ", "Our Carbon Footprint ", "11 ", "Renewable Energy ", "18 ", "Low-Carbon Design ", "20 ", "Link_30", "Energy Efficiency ", "Highlights _1" ]

[ "Table_data_semibold__145\nTable_data_grey_left_99\nTable_data_semibold__146\nTable_data_grey_left_100\nTable_data_semibold__147\nTable_data_grey_left_101\nTable_data_semibold__148\nTable_data_grey_left_102\nTable_data_semibold__149\nTable_data_grey_left_103\nTable_data_semibold__150\nTable_data_grey_left_104\nTable_data_semibold__151\nTable_data_grey_left_105", "Table_data_semibold__173\nTable_data_grey_left_116\nTable_data_semibold__174\nTable_data_grey_left_117\nTable_data_semibold__175\nTable_data_grey_left_118\nTable_data_semibold__176\nTable_data_grey_left_119\nTable_data_semibold__177\nTable_data_grey_left_120", "Apple’s Operations: Environmental Data\n• Facilities Environmental Performance Indicators \n• Product Environmental Performance Indicators\n• Scopes 1 and 2 Carbon Emissions Breakdown\n• Fiscal Year 2017 Natural Gas and Electricity Use\nData Center Energy Supplement\nAssurance and Review Statements\n• Corporate energy, carbon, waste and water data (Bureau Veritas)\n• Product life cycle carbon footprint (Fraunhofer Institute)\n• Supplier clean energy program (Bureau Veritas) \n• Fiber footprint (Fraunhofer Institute)\n• Packaging plastic footprint (Fraunhofer Institute)\nEnvironmental Health and Safety Policy Statement ", "Apple’s fiscal year is the 52- or 53-week period that ends on the last Saturday of September. \n¹ As reported in Apple’s Form 10-K Annual Report filed with the SEC for FY2017.\n² Starting in FY2016, Scope 1 emissions include diesel use in emergency backup generators and propane gas use in corporate offices.\n³ In FY2015, we adjusted our methodology to better reflect locations where natural gas is used. We estimate natural gas usage in offices and retail stores where we are not billed based on usage (e.g., leased office space or retail stores within malls). This more accurate methodology resulted in a decrease in emissions in FY2015.\n⁴ Emissions from Ramp;D processes. We started tracking these emissions in FY2017.\n⁵ We’ve updated our FY2016 colocation facilities footprint to reflect more accurately Apple’s operational boundaries. Per the WRI Greenhouse Gas Protocol, we’ve removed from our Scope 2 calculations those emissions associated with colocation facility cooling and building operations. This energy use, however, is still covered by renewable energy. As a result, these effective Scope 3 emissions from this energy use was 550 metric tons CO₂e in FY2016, and 500 metric tons in FY2017.\n⁶ In FY2017, we started calculating Scope 3 emissions not listed above. These include electricity transmission and distribution losses (22,300 metric tons CO₂e) and lifecycle emissions associated with renewable energy (46,400 metric tons CO₂e).\n⁷\tWe adjusted our methodology for FY2017 to take into account Apple’s “At Home Advisors” Program, where employees work remotely.\n⁸\tOnly total electricity usage data was available for FY2012. \n⁹\tBecause energy efficiency measures have lasting benefits, energy efficiency savings are calculated cumulatively since 2011. All efficiency measures are retired based on their effective useful lifetime as documented by the California Energy Commission. \n¹⁰We calculate our progress toward 100 percent renewable energy on a calendar year basis. Beginning January 1, 2018, 100 percent of the electricity we use to power our global facilities is sourced from renewable energy. \n¹¹Beginning in FY2017, “Data Centers” includes water use at colocation facilities, and “Corporate” includes water use at Apple distribution centers.\n¹²Beginning in FY2017, we’re including waste from Apple’s distribution centers. Prior to FY2015, composted quantities were reported as part of the “recycled” figure. Beginning in FY2017, waste processed in “Waste to Energy” facilities is reported separately.\t\t", "Traditional supply chains are linear. Materials are mined, manufactured as products, and often end up in landfills after use. Then the process starts over and more materials are extracted from the earth for new products. This extraction damages our environment and depletes the resources we all need to thrive. So in 2017, we announced our commitment to a closed-loop supply chain—where products are made using recycled or renewable materials only. And where we return an equivalent amount of material back to the market to be used by us or others. It’s an ambitious goal that will require years of collaboration across Apple teams, our suppliers, and recyclers—but our work is already underway.\nWhile we transition to this new supply chain model, we are committed to maintain our initiatives that ensure the materials we use in our products are sourced responsibly—through strict standards and programs that drive positive change. \nHow we contribute back to market depends on the type of material involved. For finite materials such as aluminum, we seek to recover the material from the manufacturing process and from products at their end of life. We then either redirect that material back into our own supply chain, or ensure it is sent to a secondary materials market. For renewable materials such as the wood fiber in our packaging, our focus is on regeneration of supply, meaning that we create, or protect, an equivalent supply of the resource that we use. \nWe hold ourselves to a strict definition of closed loop: To meet our goal, we must use 100 percent responsibly sourced recycled or renewable materials and ensure the equivalent amount is returned to market. Recognizing that this goal could take many years to reach, we remain committed to responsible sourcing of primary materials as we make the transition. \nFundamental to this work is our firm belief that we can transition to recycled or renewable materials without compromising the final product. \nTo prioritize which materials to tackle first, we created Material Impact Profiles for 45 elements and raw materials commonly used in consumer electronics. The profiles identified global environmental, social, and supply risk factors spanning the life of each material. We then combined the impact profiles with data that’s more specific to Apple. Finally, in addition to the weighted score assigned to each material, we also considered additional qualitative factors, like whether a material represents unique opportunities for new closed-loop supply chain models or is significant to the customer experience—like the glass they touch or the paper in their product packaging.\nThrough this process, we identified a short list of materials on which to focus our initial efforts. We’ve started working to close the loop on these priority materials, and have active projects for aluminum, cobalt, copper, glass, paper, plastics, stainless steel, tin, tungsten, and rare earth elements (neodymium, praseodymium, dysprosium).\nWe are making changes to our product designs to reduce the amount of material needed. For example, we changed the way we manufacture the enclosure of the 12.9-inch iPad Pro, replacing the extrusion process with a sheet forge design, resulting in a 73 percent reduction in the amount of aluminum needed. And since 2015, we have reduced primary aluminum consumption across all products by 23 percent, despite increasing sales.\nDaisy builds upon the learnings from Liam, our Ramp;D experiment in automated disassembly that we announced in 2016. We created Daisy\nto have a smaller footprint and the capability to disassemble multiple models of iPhone with higher variation compared to Liam. \nOur intention is to install Daisy in multiple locations around the world—\nstarting with the United States and Europe. Daisy will process end-of-life \niPhone 5, iPhone 5s, iPhone SE, iPhone 6, iPhone 6 Plus, iPhone 6s, \niPhone 6s Plus, iPhone 7, and iPhone 7 Plus devices that are returned to \nus by customers or via AppleCare. The program’s success depends in \npart on customers returning their end-of-life devices to Apple, so we are launching Apple GiveBack to make it easier for them to do so. \nWhen products can be used longer, fewer resources need to be extracted from the earth to make new ones. So we assess all our products in our Reliability Testing Lab, using rigorous testing methods that simulate customers’ experiences with their devices. For example, we analyze how devices stand up to extreme heat and cold, exposure to water and everyday chemicals, and scratch tests from materials like denim and metal coins. All new materials, including recycled materials, are tested extensively to make sure they meet our performance and durability standards. If a product does require repair, Apple and its authorized service providers provide repair services and parts for five years after the product is no longer manufactured - or longer where required by law. \nStory_4", "• Aluminum\t1900 kg\n• Gold \t0.97 kg\n• Silver\t7.5 kg\n• Rare earth elements \t11 kg\n• Tungsten\t93 kg\n• Copper\t710 kg\n• Palladium\t0.10 kg\n• Tin\t42 kg\n• Cobalt \t770 kg\n• Tantalum \t1.8 kg", "We engage with industry, sustainability, and cross-sector organizations to share knowledge while learning from subject-matter experts in strategic areas. We prioritize associations that share our values, passion, and deeply held belief that companies can make a difference. \nGreat relationships are built over time. So we have renewed our commitments to Ceres, Corporate Eco Forum, the World Business \nCouncil for Sustainable Development (WBCSD), the GreenBiz Executive Network, and the Paulson Institute, among others. We are continuing \nour memberships in organizations whose work aligns with our three \npriority areas:\nWe’ve continued to work with cross-sector companies, researchers, suppliers, thought leaders, and technical experts to forge new paths, \nbuild unique solutions, and inspire others to continue their efforts. \nWe are building relationships with key academic institutions worldwide—like with Tsinghua University’s School of Economics and Management in Beijing, where we are funding a $3 million endowed chair professorship based on Responsible Innovation. We also collaborated with Tsinghua for a second year on an App Innovation Contest and a Green Innovators program, which focus on identifying creative solutions to environmental challenges, governance, and public administration through entrepreneurship. \nIn 2016, we partnered with app developers and customers across the globe to create Apps for Earth, an initiative that generated over $8 million to support World Wildlife Fund’s global environmental projects. As of November 2017, World Wildlife Fund had invested approximately $6.5 million of funds raised, focusing on environmental projects in seven key areas: \nWe continue to meet with our own Green Chemistry Advisory Board, made up of some of the world’s leading toxicologists, researchers, and academics. The board helps us identify innovative ways to minimize or eliminate toxins from our supply chain. We also invite experts from around the world to meet with leaders at Apple. Together, we focus on eliminating toxins at each stage of our process. \nIn 2017, we invited key stakeholders to participate in small closed-door roundtables in Europe, the United States, and China to obtain feedback on Apple’s closed-loop ambition and our current approach. Attendees included \na range of academics, NGOs, industry leaders, and other companies.\nWe want to share our vision and our work, so we can make a difference well beyond Apple’s walls. To increase our impact, over the last year our team presented at several notable conferences, meetings, and events, including: \nIn addition, we published a number of papers to offer insight into how we’re innovating on environmental challenges. These include a white paper about the work we are doing to source paper responsibly and a collaboration with RE100 about our supplier clean energy program. \nWe believe it’s important to defend the best ideas and to amplify our beliefs. And to speak out when our voice will have a powerful impact: ", "Link_22\ntext_8\nLink_23\ntext_9\nLink_24\ntext_10\nLink_25\ntext_11\nLink_26\ntext_12", "Link\nLink_0\nLink_1\nLink_2\nLink_3\nLink_4\nLink_5\nLink_6\nLink_7", "Apple’s mission has never wavered. We are here to change the world. It’s what inspires the amazing products and services that reach billions of people around the globe. It’s what drives us to relentlessly push the boundaries of innovation and design. And it’s why we continuously strive to do more with less—reducing our impact on the Earth we all share, while expanding and redefining the possibilities ahead.\nOur 11th annual Environmental Responsibility Report covers fiscal year 2017, and highlights the progress we’ve made in meeting our environmental objectives. The challenges are complex, but the philosophy is simple: Apply the same innovation that goes into making our products. Today, we remain focused on three priorities where we and our stakeholders believe Apple can make the biggest difference:\nIn each of these key areas, we set ambitious but measurable goals, then develop smart solutions to meet them. Our work to reduce our greenhouse gas emissions is a great example. \nMore than a decade ago, we started to transition our electricity use to renewable sources. Today, we’re proud to power 100 percent of our operations around the world with 100 percent renewable energy. That means every Apple data center, retail store, corporate office, and colocation facility in 43 countries around the world now runs on clean power. In the process, we’ve paved the way for other companies and organizations to purchase renewable energy and transition their own operations to greener power.\nAs we worked to reach 100 percent renewable energy for our own operations, we began to challenge our suppliers to make the same transition to clean energy through our supplier clean energy program. As of April 2018, 23 manufacturers have committed to power all of their Apple operations with 100 percent renewable energy. And we’re well on our way to meeting our goal of putting 4 gigawatts of new clean energy online in our supply chain by 2020.\nWe also made progress toward our goal to one day make new products without mining new materials from the earth. We hope to get there by using only recycled or renewable materials in our products, and returning an equivalent amount of material back to the market, to be used by us or others. \nLike everything at Apple, this effort is driven by innovation. We’ve developed a brand-new robot, Daisy, capable of disassembling nine versions of iPhone, and sorting their high-quality components for recycling. To help keep Daisy busy, we’re making it easier than ever for customers to recycle their old Apple devices through our new Apple GiveBack experience. \nThere’s a lot more to our story over the past year. As you read through this Environmental Progress Report, we are busy working toward our \nnext frontiers in clean energy, materials recovery, and green chemistry. We are proud of our work and look forward to continuing our journey. \nLisa Jackson\nVice President, Environment, Policy amp; Social Initiatives", "2011: Our 20-megawatt solar PV project in North Carolina was the first utility-scale project built and owned by a non-energy commercial company. We minimized our risk by leveraging the 1978 Public Utility Regulatory Policies Act (PURPA), which we then used for five more projects in North Carolina and Oregon.\n2012: We began using Direct Access to purchase renewable energy from \nindependent power producers, rather than the local utility for our Oregon and California data centers. We also now use it to supply renewables from projects \nwe own ourselves: Solar Star Oregon II and California Flats PV.\n2013: We worked with the local utility in Reno to create the Nevada Green Rider—\na regulatory structure that allows us to enter into long-term contracts with new renewable energy projects. \n2014: We created a first-of-its-kind joint venture in Sichuan to make an equity investment in two 20-megawatt solar PV projects to cover electricity use at our Chinese corporate offices, retail stores, and data storage.\n2015: In Singapore, where we have a retail store and corporate campus, we put solar PV panels on more than 800 rooftops, and used the Singaporean version of Direct Access to deliver that power to our facilities.\n2016: We identified an economical way to generate new renewable energy in Japan, despite its difficult regulatory rules, by installing over 300 solar PV rooftop systems connected to the grid using a low-voltage tariff.\n2017: We installed 17 megawatts of onsite rooftop solar PV and 4 megawatts of biogas fuel cells, along with a microgrid and battery storage, at Apple Park, our \nnew corporate campus. \n2018: We contracted for renewable energy generation in new markets like India, Turkey, Israel, Brazil, and Mexico to cover our remaining loads in those and \nneighboring countries. \n2019+: Beyond 2018, we will continue to innovate to expand our use of \nrenewable energy as our electricity needs grow. We’ll continue to explore new \nmarkets and invest in energy storage—an essential element in our transition to renewable energy.", "Table_subhead_center_2\nTable_data_semibold__5\nTable_subhead_center_3\nTable_data_semibold__6\nTable_data_semibold__7\nTable_data_semibold__8\nTable_data_semibold__9\nTable_data_semibold__10\nTable_data_semibold__11", "Table_subhead_center_4\nTable_data_semibold__33\nTable_subhead_center_5\nTable_data_semibold__34\nTable_data_semibold__35\nTable_data_semibold__36\nTable_data_semibold__37\nTable_data_semibold__38\nTable_data_semibold__39", "Table_subhead_center_7\nTable_data_semibold__47\nTable_subhead_center_8\nTable_data_semibold__48\nTable_data_semibold__49\nTable_data_semibold__50\nTable_data_semibold__51\nTable_data_semibold__52\nTable_data_semibold__53", "Table_subhead_center_12\nTable_data_semibold__75\nTable_subhead_center_13\nTable_data_semibold__76\nTable_data_semibold__77\nTable_data_semibold__78\nTable_data_semibold__79\nTable_data_semibold__80\nTable_data_semibold__81", "Table_subhead_center_14\nTable_data_grey_left_11\nTable_subhead_center_15\nTable_grey_right_6_8_64\nTable_grey_right_6_8_65\nTable_grey_right_6_8_66\nTable_grey_right_6_8_67\nTable_grey_right_6_8_68\nTable_grey_right_6_8_69", "¹ As reported in Apple’s Form 10-K Annual Report filed with the SEC for FY2017._0\n² We have been calculating the life cycle greenhouse gas emissions of our products since 2007. Over time, we have greatly refined our model to include more Apple-specific data instead of industry averages. We made significant modeling changes in FY2016 to improve how we calculate emissions from the integrated circuits in Apple products, which resulted in a decrease in manufacturing emissions. And we make systematic changes each year to reflect changes in global electricity grids. Scope 3 emissions associated with employee commute and business travel are included in the Facilities Environmental Performance Indicators table.\n³ Carbon emissions associated with our products’ end of life decreased in FY2017, because of changes in methodology to more accurately reflect disposal and recycling practices.\n⁴ Arsenic is present in minute quantities in some semiconductor devices.\n⁵ Every Apple product is free of PVC and phthalates with the exception of power cords in India and South Korea, where we continue to seek government approval for our PVC and phthalates replacement.\n⁶ Apple products comply with the European Union Directive 2011/65/EU and its amendments, including exemptions for the use of lead. Apple is working to phase out the use of these exempted substances where technically possible. \n⁷ While Apple’s phaseout covers the vast majority of products and components, recently acquired Beddit products and some older Apple product designs may not be fully BFR‑free and PVC‑free.\nOverview of Apple’s product life cycle carbon assessment (LCA) methodology\nApple uses five steps when conducting a product LCA.", "Table_subhead_center_32\nTable_subhead_center_33\nTable_subhead_center_34\nTable_subhead_center_35\nTable_subhead_center_36", "Maiden, North Carolina\nNewark, California\nPrineville, Oregon\nReno, Nevada \nMesa, Arizona \nViborg, Denmark \nOur colocation facilities \nEnergy Use and Emissions at Apple’s Colocation Facilities\nRegional Energy Use at Apple’s Colocation Facilities \n(Fiscal Year 2017)\t", "Table_data_semibold__40\nTable_subhead_center_6\nTable_data_semibold__41\nTable_data_semibold__42\nTable_data_semibold__43\nTable_data_semibold__44\nTable_data_semibold__45\nTable_data_semibold__46", "Table_data_semibold__54\nTable_subhead_center_9\nTable_data_semibold__55\nTable_data_semibold__56\nTable_data_semibold__57\nTable_data_semibold__58\nTable_data_semibold__59\nTable_data_semibold__60", "Table_subhead_center_10\nTable_data_semibold__61\nTable_data_semibold__62\nTable_data_semibold__63\nTable_data_semibold__64\nTable_data_semibold__65\nTable_data_semibold__66\nTable_data_semibold__67", "Table_data_semibold__68\nTable_subhead_center_11\nTable_data_semibold__69\nTable_data_semibold__70\nTable_data_semibold__71\nTable_data_semibold__72\nTable_data_semibold__73\nTable_data_semibold__74", "Cupertino, CA\nElk Grove, CA\nAustin, TX\nOther U.S.\nCork, Ireland\nSingapore\nChina\nOther International", "20,580\n530\n330\n1160\n710\n90\n220\n1810", "0\n0_0\n0_1\n0_2\n0_3\n0_4\n0_5\n33,290_0", "17,121\n397\n248\n883\n780\n65\n38\n1005", "0_6\n0_7\n0_8\n0_9\n0_10\n0_11\n0_12\n30,408_0", "13,248\n369\n233\n121\n892\n0_13\n117\n435", "0_14\n0_15\n0_16\n0_17\n0_18\n3767\n2201\n13,596", "Cupertino, CA_0\nElk Grove, CA_0\nAustin, TX_0\nOther U.S._0\nCork, Ireland_0\nSingapore_0\nChina_0\nOther International_0", "12,929\n411\n148\n115\n1000_0\n51\n385\n296_0", "0_42\n0_43\n0_44\n0_45\n0_46\n6852\n8577\n6126", "10,747\n509\n83\n337\n743\n50\n390\n868", "0_47\n0_48\n0_49\n0_50\n0_51\n5826\n7490\n4187", "25,450\n0_52\n0_53\n4265\n0_54\n4946\n1049\n12,505", "Cupertino, CA_1\nElk Grove, CA_1\nAustin, TX_1\nOther U.S._1\nCork, Ireland_1\nSingapore_1\nChina_1\nOther International_1", "467,280\n9930\n6180\n21,750\n13,420\n540\n4070\n33,800", "85,990_0\n0_75\n0_76\n0_77\n0_78\n0_79\n0_80\n0_81", "305\n15\n56\n19\n13_1\n19_0\n24\n93", "305_0\n15_0\n56_0\n19_1\n13_2\n19_2\n24_0\n37", "273\n118_0\n195\n186\n45\nlt;1\n228\n61", "273_0\n118_1\n195_0\n186_0\n45_0\nlt;1_0\n228_0\n58", "LI_7", "LBody_34\nLBody_35\nLBody_36\nLBody_37\nLBody_38\nLBody_39\nLBody_40\nLBody_41", "LBody_10\nLBody_11\nLBody_12\nLBody_13\nLBody_14\nLBody_15\nLBody_16", "LBody_17\nLBody_18\nLBody_19\nLBody_20\nLBody_21\nLBody_22\nLBody_23", "Table_data_grey_left\nTable_grey_right_6_8\nTable_grey_right_6_8_0\nTable_grey_right_6_8_1\nTable_grey_right_6_8_2\nTable_grey_right_6_8_3\nTable_grey_right_6_8_4", "Table_data_grey_left_0\nTable_grey_right_6_8_5\nTable_grey_right_6_8_6\nTable_grey_right_6_8_7\nTable_grey_right_6_8_8\nTable_grey_right_6_8_9\nTable_grey_right_6_8_10", "Table_data_semibold__12\nTable_data_semibold__13\nTable_data_semibold__14\nTable_data_semibold__15\nTable_data_semibold__16\nTable_data_semibold__17\nTable_data_semibold__18", "Table_data_semibold__19\nTable_data_semibold__20\nTable_data_semibold__21\nTable_data_semibold__22\nTable_data_semibold__23\nTable_data_semibold__24\nTable_data_semibold__25", "Table_data_grey_left_2\nTable_grey_right_6_8_12\nTable_grey_right_6_8_13\nTable_grey_right_6_8_14\nTable_grey_right_6_8_15\nTable_grey_right_6_8_16\nTable_grey_right_6_8_17", "Table_data_grey_left_3\nTable_grey_right_6_8_18\nTable_grey_right_6_8_19\nTable_grey_right_6_8_20\nTable_grey_right_6_8_21\nTable_grey_right_6_8_22\nTable_grey_right_6_8_23", "Table_data_semibold__26\nTable_data_semibold__27\nTable_data_semibold__28\nTable_data_semibold__29\nTable_data_semibold__30\nTable_data_semibold__31\nTable_data_semibold__32", "Table_data_grey_left_6\nTable_grey_right_6_8_34\nTable_grey_right_6_8_35\nTable_grey_right_6_8_36\nTable_grey_right_6_8_37\nTable_grey_right_6_8_38\nTable_grey_right_6_8_39", "Table_data_grey_left_7\nTable_grey_right_6_8_40\nTable_grey_right_6_8_41\nTable_grey_right_6_8_42\nTable_grey_right_6_8_43\nTable_grey_right_6_8_44\nTable_grey_right_6_8_45", "Table_data_grey_left_8\nTable_grey_right_6_8_46\nTable_grey_right_6_8_47\nTable_grey_right_6_8_48\nTable_grey_right_6_8_49\nTable_grey_right_6_8_50\nTable_grey_right_6_8_51", "Table_data_grey_left_9\nTable_grey_right_6_8_52\nTable_grey_right_6_8_53\nTable_grey_right_6_8_54\nTable_grey_right_6_8_55\nTable_grey_right_6_8_56\nTable_grey_right_6_8_57", "Table_data_grey_left_10\nTable_grey_right_6_8_58\nTable_grey_right_6_8_59\nTable_grey_right_6_8_60\nTable_grey_right_6_8_61\nTable_grey_right_6_8_62\nTable_grey_right_6_8_63", "Table_data_grey_left_12\nTable_grey_right_6_8_70\nTable_grey_right_6_8_71\nTable_grey_right_6_8_72\nTable_grey_right_6_8_73\nTable_grey_right_6_8_74\nTable_grey_right_6_8_75", "Table_data_grey_left_14\nTable_grey_right_6_8_79\nTable_grey_right_6_8_80\nTable_grey_right_6_8_81\nTable_grey_right_6_8_82\nTable_grey_right_6_8_83\nTable_grey_right_6_8_84", "Table_data_semibold__82\nTable_data_semibold__83\nTable_data_semibold__84\nTable_data_semibold__85\nTable_data_semibold__86\nTable_data_semibold__87\nTable_data_semibold__88", "Table_subhead_center_16\nTable_subhead_center_17\nTable_subhead_center_18\nTable_subhead_center_19\nTable_subhead_center_20\nTable_subhead_center_21\nTable_subhead_center_22", "Maiden, NC\nNewark, CA\nPrineville, OR\nReno, NV\nMesa, AZ\nViborg, Denmark\nColocation facilities (U.S.)²\nColocation facilities (International)²", "Table_data_semibold__124\nTable_data_semibold__125\nTable_data_semibold__126\nTable_data_semibold__127\nTable_data_semibold__128\nTable_data_semibold__129\nTable_data_semibold__130", "Table_subhead_center_23\nTable_subhead_center_24\nTable_subhead_center_25\nTable_subhead_center_26\nTable_subhead_center_27\nTable_subhead_center_28\nTable_subhead_center_29", "9,132\n560\n59\n237\n715\n32\n609", "Table_data_semibold__156\nTable_data_semibold__157\nTable_data_semibold__158\nTable_data_semibold__159\nTable_data_semibold__160\nTable_data_semibold__161\nTable_data_semibold__162", "575,040\n0_82\n520\n0_83\n40\n—\nN/A\nN/A", "575,040_0\n0_84\n0_85\n0_86\n0_87\nN/A_0\nN/A_1", "BerylliumEliminated from all new product designs. Beryllium is found in copper alloys used to make connectors and springs.\nMercuryEliminated in 2009. We use energy-efficient, mercury-free LEDs and OLEDs instead of mercury-based fluorescent lamps in all our displays.\nLeadPhased out of display glass and solder in 2006.22\nArsenicEliminated from display glass since 2008. Arsenic was traditionally used in glass.23\nPVC and phthalatesReplaced with safer thermoplastic elastomers.24 Both are still used by other companies in power cords and headphone cables.\nBrominated flame retardants (BFRs)Eliminated from thousands of parts such as enclosures, cables, circuit boards, and connectors in 2008. We use safer metal hydroxides and phosphorus compounds in their place.25", "Reducing our plastic use.\nSourcing virgin paper responsibly.\nProtecting sustainable forests.\nSupplier water use.\nCorporate water use.\nOur water strategy.", "Table_data_semibold_\nTable_data_semibold__0\nTable_data_semibold__1\nTable_data_semibold__2\nTable_data_semibold__3\nTable_data_semibold__4", "Table_data_grey_left_4\nTable_grey_right_6_8_24\nTable_grey_right_6_8_25\nTable_grey_right_6_8_26\nTable_grey_right_6_8_27\nTable_grey_right_6_8_28", "Table_data_grey_left_5\nTable_grey_right_6_8_29\nTable_grey_right_6_8_30\nTable_grey_right_6_8_31\nTable_grey_right_6_8_32\nTable_grey_right_6_8_33", "0_21\n0_22\n0_23\n0_24\n0_25\n1520_0", "Maiden, NC_1\nNewark, CA_0\nPrineville, OR_0\nReno, NV\nMesa, AZ\nViborg, Denmark_0\nColocation Facilities (USA)¹\nColocation Facilities (International)¹", "Table_data_semibold__186\nTable_data_grey_left_121\nTable_data_grey_left_122\nTable_data_grey_left_123\nTable_data_grey_left_124\nTable_data_semibold__187", "Table_data_semibold__188\nTable_data_grey_left_125\nTable_data_grey_left_126\nTable_data_grey_left_127\nTable_data_grey_left_128\nTable_data_semibold__189", "Table_data_semibold__190\nTable_data_grey_left_129\nTable_data_grey_left_130\nTable_data_grey_left_131\nTable_data_grey_left_132\nTable_data_semibold__191", "Table_data_semibold__192\nTable_data_grey_left_133\nTable_data_grey_left_134\nTable_data_grey_left_135\nTable_data_grey_left_136\nTable_data_semibold__193", "Table_data_semibold__194\nTable_data_grey_left_137\nTable_data_grey_left_138\nTable_data_grey_left_139\nTable_data_grey_left_140\nTable_data_semibold__195", "Table_data_semibold__196\nTable_data_grey_left_141\nTable_data_grey_left_142\nTable_data_grey_left_143\nTable_data_grey_left_144\nTable_data_semibold__197", "Table_data_semibold__198\nTable_data_grey_left_145\nTable_data_grey_left_146\nTable_data_grey_left_147\nTable_data_grey_left_148\nTable_data_semibold__199", "As of April 2018, 23 suppliers operating in more than 10 different countries have \ncommitted to 100 percent clean energy for Apple production. Other suppliers \nhave also committed to generate or procure clean energy for portions of Apple \nproduction. In addition, Apple has helped develop 485 megawatts of wind and solar projects across six provinces of China to support upstream manufacturing.\nThrough extensive testing, research, and toxicological assessments, we design \nproducts to be safe. And then we continue to evaluate products while they’re undergoing product development and after they’re released to make sure they stay safe.\nWe test all our products, and place \nspecial attention on materials that \ncome in contact with skin. In our \nnickel leach testing on Apple Watch, \nwe place different components in jars \nof artificial sweat to ensure the nickel in the stainless steel alloy stays where it belongs.\nLaser-Induced Breakdown Spectroscopy is one process we \nuse to analyze the materials that \ngo into our products and detect \ncertain harmful substances, \nsuch as beryllium. \nWith the addition of gas and liquid chromatography mass spectrometry instruments, we can screen for even more substances of concern that aren’t explicitly targeted in our standard material evaluation process.", "Product Transportation/End of Life\nOur Approach \n\nValidation and Toxicology \nWorker Safety \nEliminating Toxins", "We take responsibility for the energy used to ship and recycle our products.\nDesign, manufacture, test. Repeat.\nWe run our own environmental \ntesting lab.\nHigh safety standards for the people \nwho make our products. \nThe worst toxins and what we’ve \ndone about them.", "LBody_24\nLBody_25\nLBody_26\nLBody_27\nLBody_28", "LI_6", "LBody_29\nLBody_30\nLBody_31\nLBody_32\nLBody_33", "0_28\n0_29\n0_30\n0_31\n1621_0", "Table_data_semibold__178\nTable_data_semibold__179\nTable_data_semibold__180\nTable_data_semibold__181\nTable_data_semibold__182", "Table_subhead_center_37\nTable_subhead_center_38\nTable_subhead_center_39\nTable_subhead_center_40\nTable_subhead_center_41", "¹ We calculate “default utility emissions” to provide baseline emissions of what our carbon footprint would have been without the use of renewable energy. This allows us to demonstrate the savings resulting from our renewable energy program. \n² Apple’s greenhouse gas emissions are calculated using the World Resources Institute Greenhouse Gas Protocol methodology for calculating market-based emissions. \n³ We calculate our progress toward our 100 percent renewable energy goal on a calendar year basis. In calendar year 2017, 99% of the electricity used at our colocation facilities was powered by renewable energy. Beginning January 2018, it is at 100%. \n⁴ Over the past two years, we have been installing submeters in colocation facilities to better track electricity usage. Beginning in FY2016, we started reporting this submetered electricity usage. Prior to fiscal year 2016, reported electricity usage was conservatively estimated based on maximum contract capacity quantities. We’ve updated our fiscal year 2016 colocation facilities footprint to reflect more accurately Apple’s operational boundaries. Per the WRI Greenhouse Gas Protocol, we‘ve removed from our electricity usage and Scope 2 calculations those emissions associated with colocation facility cooling and building operations. This energy use, however, is still covered by renewable energy.\n*We calculate our progress toward our 100 percent renewable energy goal on a calendar year basis. In calendar year 2017, 99% of the \nelectricity used at our colocation facilities was source with renewable energy. Beginning January 2018, it is at 100%.", "Table_subhead_center_42\nTable_subhead_center_43\nTable_subhead_center_44", "1. Source: Use recycled or renewable materials that are responsibly sourced. \n2. Make efficiently: Design and manufacture products to minimize the use \nof materials. \n3. Use for a long time: Design products to be durable, so they can have \nlong lives.\n4. Contribute: Replenish market supply with an amount of recycled, reclaimed, or renewable material at least equal to the amount used to make the product. ", "Packaging \nWaste \nWater\nGreen Buildings", "We’re using more recycled and \nresponsibly sourced materials in \nour packaging.\nWe’re finding new ways to keep old materials out of landfills.\nWe hold ourselves accountable for \nevery drop of water we use.\nDesigning our buildings with the planet\nin mind.", "Prioritizing our efforts.\nUsing water efficiently. \nIdentifying alternative sources. \nPursuing water stewardship. ", "More partnerships. More progress.\nCollaborating for joint success. \nShowing what we do. Sharing what \nwe know. \nSpeaking up for stronger policies. ", "Link_12\nLink_13\nLink_14\nLink_15", "Table_data_grey_left_13\nTable_grey_right_6_8_76\nTable_grey_right_6_8_77\nTable_grey_right_6_8_78", "Table_head_8_10\nTable_head_8_10_0\nTable_head_8_10_1\nTable_head_8_10_2", "Table_data_semibold__89\nTable_data_semibold__90\nTable_data_semibold__91\nTable_data_semibold__92", "Table_data_grey_left_16\nTable_data_grey_left_17\nTable_data_grey_left_18\nTable_data_grey_left_19", "Table_data_grey_left_20\nTable_data_grey_left_21\nTable_data_grey_left_22\nTable_data_grey_left_23", "Table_data_grey_left_24\nTable_data_grey_left_25\nTable_data_grey_left_26\nTable_data_grey_left_27", "Table_data_grey_left_28\nTable_data_grey_left_29\nTable_data_grey_left_30\nTable_data_grey_left_31", "Table_data_semibold__93\nTable_data_grey_left_32\nTable_data_grey_left_33\nTable_data_grey_left_34", "Table_data_grey_left_35\nTable_data_grey_left_36\nTable_data_grey_left_37\nTable_data_grey_left_38", "Table_data_grey_left_39\nTable_data_grey_left_40\nTable_data_grey_left_41\nTable_data_grey_left_42", "Table_data_semibold__94\nTable_data_grey_left_46\nTable_data_grey_left_47\nTable_data_grey_left_48", "Table_data_semibold__95\nTable_data_grey_left_49\nTable_data_grey_left_50\nTable_data_grey_left_51", "Table_head_8_10_3\nTable_head_8_10_4\nTable_head_8_10_5\nTable_head_8_10_6", "70_0\n950\n1530\n1510", "139\n1077\n713\n683", "0_32\n0_33\n13_0\n0_34", "0_35\n0_36\n0_37\n0_38", "Table_data_semibold__118\nTable_data_semibold__119\nTable_data_semibold__120\nTable_data_semibold__121", "Table_head_8_10_7\nTable_head_8_10_8\nTable_head_8_10_9\nTable_head_8_10_10", "Maiden, NC_0\nNewark, CA\nPrineville, OR\nReno, NV_0", "0_55\n0_56\n18_0\n0_57", "0_58\n0_59\n0_60\n0_61", "2201_0\n0_62\n0_63\n0_64", "0_65\n0_66\n0_67\n0_68", "146_0\n0_69\n0_70\n0_71", "Table_data_semibold__152\nTable_data_semibold__153\nTable_data_semibold__154\nTable_data_semibold__155", "— = Energy source not yet online.\nScope 2 emissions result from electricity use for Apple‘s facilities, calculated using a market-based approach, following the WRI Greenhouse Gas Protocol.\nLink_17\ntext_7", "Table_data_left_7_8\nTable_data_left_7_8_0\nTable_data_left_7_8_1\nTable_data_left_7_8_2", "Table_data_left_7_8_3\nTable_data_left_7_8_4\nTable_data_left_7_8_5\nTable_data_left_7_8_6", "Table_data_left_7_8_7\nTable_data_left_7_8_8\nTable_data_left_7_8_9\nTable_data_left_7_8_10", "Table_data_left_7_8_11\nTable_data_left_7_8_12\nTable_data_left_7_8_13\nTable_data_left_7_8_14", "Table_subhead_semibo\nTable_subhead_semibo_0\nTable_subhead_semibo_1\nTable_subhead_semibo_2", "Table_data_left_7_8_15\nTable_data_left_7_8_16\nTable_data_left_7_8_17\nTable_data_left_7_8_18", "Table_data_left_7_8_19\nTable_data_left_7_8_20\nTable_data_left_7_8_21\nTable_data_left_7_8_22", "Table_subhead_semibo_3\nTable_subhead_semibo_4\nTable_subhead_semibo_5\nTable_subhead_semibo_6", "Table_data_left_7_8_27\nTable_data_left_7_8_28\nTable_data_left_7_8_29\nTable_data_left_7_8_30", "Table_data_left_7_8_31\nTable_data_left_7_8_32\nTable_data_left_7_8_33\nTable_data_left_7_8_34", "Table_subhead_semibo_7\nTable_subhead_semibo_8\nTable_subhead_semibo_9\nTable_subhead_semibo_10", "Table_data_left_7_8_39\nTable_data_left_7_8_40\nTable_data_left_7_8_41\nTable_data_left_7_8_42", "Table_data_left_7_8_43\nTable_data_left_7_8_44\nTable_data_left_7_8_45\nTable_data_left_7_8_46", "Table_subhead_semibo_11\nTable_subhead_semibo_12\nTable_subhead_semibo_13\nTable_subhead_semibo_14", "Table_data_left_7_8_51\nTable_data_left_7_8_52\nTable_data_left_7_8_53\nTable_data_left_7_8_54", "Table_data_left_7_8_55\nTable_data_left_7_8_56\nTable_data_left_7_8_57\nTable_data_left_7_8_58", "Table_subhead_semibo_15\nTable_subhead_semibo_16\nTable_subhead_semibo_17\nTable_subhead_semibo_18", "Table_data_semibold__200\nTable_data_grey_left_149\nTable_data_grey_left_150\nTable_data_grey_left_151", "Table_data_semibold__201\nTable_data_grey_left_152\nTable_data_grey_left_153\nTable_data_grey_left_154", "Table_data_semibold__202\nTable_data_grey_left_155\nTable_data_grey_left_156\nTable_data_grey_left_157", "Table_data_semibold__203\nTable_data_semibold__204\nTable_data_semibold__205\nTable_data_semibold__206", "Apple Inc. is committed to protecting the environment, health, and safety of our employees, customers, and the global communities where we operate. \nWe recognize that by integrating sound environmental, health, and safety management practices into all aspects of our business, we can offer technologically innovative products and services while conserving and enhancing resources for future generations. \nApple strives for continuous improvement in our environmental, health and safety management systems and in the environmental quality of our products, processes, and services. \nLuca Maestri \nSenior Vice President and CFO\nJanuary 2018", "LI", "LBody\nLBody_0\nLBody_1", "Comprehensive Carbon Footprint\nCorporate Facilities\nManufacturing", "We measure more. So we can do more.\n100% renewable energy for 100% \nof our facilities.\nTransforming our manufacturing process to reduce emissions.", "How we got to 100 percent.\nWe apply strong principles for procuring renewable energy.\nReworking how we get to work.", "Energy efficiency. \nRenewable energy. \nWe’re helping our suppliers switch to renewable energy.", "Ensuring the safety of Apple Watch.\nLooking for toxins.\nUpdating the lab with state-\nof-the-art equipment.", "Our approach.\nWe’re doing more with less.\nA durable device is a greener device. ", "LI_1", "LBody_4\nLBody_5\nLBody_6", "LBody_7\nLBody_8\nLBody_9", "Table_subhead_center\nTable_subhead_center_0\nTable_subhead_center_1", "The following table summarizes the environmental performance indicators relating to Apple’s products—including the life cycle greenhouse gas emissions associated with the manufacturing, transportation, use, and \nend-of-life processing of our products. In fiscal year 2017, we sold 216,756,000 iPhone, 43,753,000 iPad, and 19,251,000 Mac devices.¹\nLink_16\ntext_6", "Table_data_grey_left_43\nTable_data_grey_left_44\nTable_data_grey_left_45", "1520\n0_19\n0_20", "1621\n0_26\n0_27", "7664_0\n0_73\n0_74", "¹ Apple also calculates what our emissions would have been had we not taken action to supply new, clean renewable energy to our facilities. If we remove the emissions reduction benefits of our renewable energy \nprogram, then our Scope 1 emissions in FY2017 would have been 70,780 metric tons CO₂e and our Scope 2 emissions would have been 589,000 CO₂e for our corporate operations, data centers, and retail stores. In FY2017, combustion of biogas for our fuel cells resulted in 36,220 metric tons of direct CO₂ emissions. These emissions are not counted in Apple‘s footprint because they would have occurred naturally even if we\nhad not combusted the biogas.\n² In FY2016, we began tracking electricity used at colocation facilities as part of Apple‘s footprint. We‘ve updated our FY2016 colocation facilities footprint to reflect more accurately Apple‘s operational boundaries.\nPer the WRI Greenhouse Gas Protocol, we‘ve removed from our Scope 2 calculations those emissions associated with colocation facility cooling and building operations. This energy use, however, is still covered by renewable energy. As a result, these Scope 3 effective emissions from this energy use was 550 metric tons CO₂e in FY2016, and 500 metric tons in FY2017.\n³ Emissions from Ramp;D processes.", "Table_data_semibold__183\nTable_data_semibold__184\nTable_data_semibold__185", "— Data not tracked \nN/A = Gas use at colocation facilities are considered outside of Apple’s operational control.\n² We calculate our progress toward 100 percent renewable energy on a calendar year basis. In calendar year 2017, 97 percent of the electricity used at our global facilities was powered by renewable energy. Beginning January 1, 2018, we are at 100 percent.", "LI_0", "LBody_2\nLBody_3", "After the U.S. withdrew from the \nParis climate agreement, Apple responded by issuing a $1 billion green bond for environmental projects, bringing our total to $2.5 billion.\nLink_8", "Progress toward 4 gigawatts\nSafer materials assurance process", "Link_9\ntext_2", "Link_10\ntext_3", "In fiscal year 2017, our U.S. product packaging used on average 29 percent less plastic than in 2016. Recycled fiber now represents 64 percent of packaging fiber. And we are now sourcing 100 percent of the virgin fiber in our packaging from \nsustainably managed forests or controlled wood.\nWe calculate our corporate water use for our data centers, retail stores, and \ncorporate offices.", "Water use at Apple facilities\nStory_5", "Link_11\ntext_5", "A single company cannot solve the world’s challenges alone. \nSo Apple engages across sectors, listens to diverse perspectives, and shares the latest research to identify solutions. \nIn this past year, we’ve continued our focus on inspiring others,\ninfluencing public policy, and helping to improve global outcomes. We’ve deepened our engagement with well-respected organizations, collaborated with peer organizations, publicly shared our vision and our journey, and supported legislative efforts through advocacy. ", "Table_data_grey_left_1\nTable_grey_right_6_8_11", "Table_data_grey_left_15\nTable_grey_right_6_8_85", "Table_data_grey_left_52\nTable_data_grey_left_53", "Table_data_grey_left_54\nTable_data_grey_left_55", "Table_data_grey_left_56\nTable_data_grey_left_57", "Table_data_grey_left_58\nTable_data_grey_left_59", "Table_data_grey_left_60\nTable_data_grey_left_61", "Table_data_grey_left_62\nTable_data_grey_left_63", "4210\n150", "2738\n126", "Domestic (U.S.)\nInternational_0", "2490\n2430", "0_39\n1440_0", "1597\n2082", "0_40\n8924_0", "2269\n1531", "0_41\n22,893_0", "Table_data_semibold__122\nTable_data_semibold__123", "7664\n0_72", "Domestic (U.S.)_0\nInternational_1", "2812\n2543", "11,036\n30,662", "3548\n2610", "44,606\n29,397", "787\n2025", "Table_subhead_center_30\nTable_subhead_center_31", "Total Gas\n(mmBTU)", "Renewable Biogas\n(mmBTU)_0", "Total Electricity\n(million kWh)", "Renewable Electricity\n(million kWh)_0", "Domestic (U.S.)_1\nInternational_2", "46,800\n45,800", "0_88\n0_89", "96\n86", "96_0\n83_0", "Table_head_7_10_1\nTable_head_7_10_2", "Table_data_left_6_8\nTable_data_left_6_8_0", "Table_head_7_10_5\nTable_head_7_10_6", "Table_data_left_7_8_23\nTable_data_left_7_8_24", "Table_data_left_7_8_25\nTable_data_left_7_8_26", "Table_data_left_6_8_1\nTable_data_left_6_8_2", "Table_head_7_10_9\nTable_head_7_10_10", "Table_data_left_7_8_35\nTable_data_left_7_8_36", "Table_data_left_7_8_37\nTable_data_left_7_8_38", "Table_data_left_6_8_3\nTable_data_left_6_8_4", "Our data center in Newark, California, is powered by 100 percent renewable energy. We hit this milestone in January 2013, when we began serving the data center with energy sourced primarily from California wind power. We’re acquiring this energy directly from the wholesale market through California’s Direct Access program. Late in 2017, Apple’s 130-megawatt California Flats solar project in Monterey County, California, came online, and now we use Direct Access to supply power from that project directly to our data center as well as other Apple facilities in California. \nIn fiscal year 2017, the Newark data center was supported by projects \nthat generated 118 million kilowatt-hours of renewable energy, which is equivalent to the energy used by 17,976 California homes.26", "Table_head_7_10_13\nTable_head_7_10_14", "Table_data_left_7_8_47\nTable_data_left_7_8_48", "Table_data_left_7_8_49\nTable_data_left_7_8_50", "Table_data_left_6_8_5\nTable_data_left_6_8_6", "Table_head_7_10_17\nTable_head_7_10_18", "Table_data_left_7_8_59\nTable_data_left_7_8_60", "Table_data_left_7_8_61\nTable_data_left_7_8_62", "Table_data_left_6_8_8\nTable_data_left_6_8_9", "Total Energy Use\n(kWh)", "Renewable Energy\n(kWh)_0", "Mission Statement \nGuiding Principles ", "Environmental\nResponsibility Report", "2018 Progress Report, Covering Fiscal Year 2017 ", "Meet Daisy, our latest innovation in material recovery. Daisy disassembles nine different iPhone models, so we can recover materials that traditional recyclers cannot—and at higher quality.", "Page 3\tEnvironmental Responsibility at Apple", "Page 5\tClimate Change", "Page 19\tResources", "Page 35\tSafer Materials", "Page 42\tBetter Together", "Page 47\tAppendix A", "Page 52\tAppendix B", "Page 59\tAppendix C", "Page 75\tAppendix D", "Environmental Responsibility at Apple ", "To ask less of the planet, \nwe ask more of ourselves. ", "Climate change: Reduce our impact on climate change by using renewable energy sources and driving energy efficiency in our products, facilities, and supply chain. ", "Resources: Conserve precious resources so we all can thrive. ", "Safer materials: Pioneer the use of safer materials in our products and processes. ", "Our work is led by Lisa Jackson, Apple’s Vice President of Environment, Policy and Social Initiatives, reporting directly to CEO Tim Cook. The Office of Environment, Policy and Social Initiatives works with teams across Apple to set strategy, engage stakeholders, and communicate progress. Our integrated approach means that decisions about Apple values, including environment, \nare reviewed and supported at the \nhighest levels of the company.", "Climate Change", "We’re making more of an impact\nby making less of one.\n", "We proved that 100 percent renewable is 100 percent doable. \nAll our facilities worldwide—including Apple offices, retail stores, and \ndata centers—are now powered entirely by clean energy. But this is \njust the beginning of how we’re reducing greenhouse gas emissions \nthat contribute to climate change. We‘re continuing to go further than \nmost companies in measuring our carbon footprint, including manufacturing \nand product use. And we’re making great progress in those areas too.", "Apple’s emissions (Scopes 1 and 2)", "Since 2011, Apple has reduced emissions from our offices, data centers, retail stores, and fleet vehicles worldwide by 54 percent—even while our energy use more than tripled during this same period.", "Direct ownership. Where feasible, we produce our own renewable energy by building our own renewable energy projects, including solar arrays, \nwind farms, biogas fuel cells, and low-impact hydro generation systems. ", "Dedicated renewable energy contracts. Where it’s not feasible to build our own generation, we sign long-term renewable energy purchase contracts, supporting new, local projects that meet our robust renewable energy sourcing principles. ", "Apple Park is powered by 100 percent renewable energy from multiple sources, including a 17-megawatt onsite rooftop solar installation and 4 megawatts of biogas fuel cells. The new headquarters even provides clean energy back to the public grid through the use of battery storage and a microgrid during periods of low occupancy.", "Apple’s carbon footprint", "Our carbon footprint tells us a lot about how we’re doing and where there are opportunities to go further. For example, because aluminum represents almost a quarter of our manufacturing emissions, we developed a program to reduce emissions associated with aluminum enclosures.", "Our facilities include all of our \noffices, stores, and data centers \nin 43 countries. ", " $2.5 billion", "Download the 2018 Green Bond Report", "Every time you send an iMessage, make a FaceTime call, ask Siri a question, stream a song, or share a photo, it takes energy. And those tasks are handled by our data servers running on 100 percent wind, solar, low-impact hydro, or biogas fuel cell power.", "9 ", "\tmillion\n\tsquare feet\t", "In fiscal year 2017, we implemented energy efficiency measures in more than 9 million square feet of Apple facilities, with a combined annual electricity use \nof over 300 million kWh—resulting in \nan average energy savings of about\n5 percent.", "Wind", "Low-impact\nhydro", "Biogas fuel cell", "Solar", "Key innovations in creating or \nprocuring our renewable energy.", "Innovation played a key role in how we contracted and built projects to help us reach 100 percent renewable energy starting in 2018*.", "*We achieved our 100 percent renewable energy goal beginning January 1, 2018.", "In China, our solar projects produce enough energy to power all our offices and retail stores in that country. Solar panels are mounted high off the ground to let sunlight shine through, so the grass can grow—and the local yaks \ncan eat it.", "Apple and supplier-created long-term renewable \nenergy projects.", "To reduce our carbon emissions, Apple and our suppliers are generating and procuring renewable energy. \nThe map below represents long term investments into new renewable energy projects supporting Apple facilities, manufacturing, and cleaner grids around the world.*", "To reduce Apple’s own electricity footprint (Scope 2 emissions), we have built or have long-term commitments for renewable energy, of which 626 megawatts is operational and another 775 megawatts is under construction. To address emissions from manufacturing products, Apple and our suppliers have invested or procured 1.1 gigawatts of grid-connected projects, with another 1.9 gigawatts in development. These projects apply a mix of clean energy technology—approximately 48 percent wind, 46 percent solar, 5 percent biomass, and 1 percent low-impact hydro.", "*The map does not include REC and Guarantee of Origin purchases, utility clean energy programs, short-term contracts, and projects that are not yet sited.", "2017 transportation emissions", "We look at the carbon footprint associated with all modes of our employee travel.", "Carbon emissions per product (kg)", "Our efforts to reduce emissions from manufacturing products have resulted in a per product year-over-year decline in carbon emissions.", "4 gigawatts = one-third of our \nmanufacturing emissions", "By 2020, Apple and our suppliers will generate or procure 4 gigawatts of clean energy in our supply chain. \nThat’s approximately one-third of our current manufacturing footprint.", "Our partner Compal, which assembles iPad devices, is constructing rooftop solar on its facilities across China. By the end of 2018, it will achieve its goal of 100 percent renewable energy for Apple production.", "We screen our materials with comprehensive risk assessment tools, including GreenScreen®, which evaluates substances against 18 different hazards, including carcinogens, mutagens, and endocrine disruptors.", "100%At all of our final assembly facilities in 2017, 100 percent of all process chemicals complied with Apple’s Regulated Substances Specification.", "T\n", "We’re continually evaluating the materials used in products. When we identify toxins, we reduce them, remove them, or develop new materials that are safer. These efforts also remove toxins from our manufacturing \nand recycling processes, which protects the people who make and take apart our products and keeps pollutants out of the land, air, and water.\n", "Story_3", "• Arkema• Biel Crystal Manufactory Ltd.• Catcher Technology• Compal Electronics• DSM Engineering Plastics• ECCO Leather• Finisar• Golden Arrow• Ibiden• Jabil• Lens Technology• Luxshare-ICT• Mega Precision• Pegatron• Qorvo• Quadrant• Quanta Computer• Solvay• Sunway Communication• Sunwoda Electronics• Taiyo Ink Mfg. Co.• Wistron• Yuto", "Lowering emissions by focusing on aluminum.", "text_1", "download the Program Update ", "For more information on how \nour suppliers are fulfilling their renewable energy commitments, \n", "We’re reducing our manufacturing emissions by prioritizing aluminum that was smelted using hydroelectricity rather than fossil fuels, and we reengineered our manufacturing \nprocess to reincorporate scrap aluminum.", "↓2.6 million", "Changes to aluminum production and suppliers transitioning to renewable energy cut our greenhouse gas \nemissions by 2.6 million metric tons\nin fiscal year 2017.⁹", "The packaging for the 13-inch MacBook Pro with Touch Bar weighs 19 percent less than the previous generation. By designing our packaging to be lighter, we reduce emissions from shipping.16", "Resources", " Rethinking materials. ", "We’re always thinking of ways to use fewer of the earth’s \nprecious resources and ways to use them again. Like recovering more\nof the high-quality materials in your old devices to make new products. Through more efficient recycling technologies and other innovations, we hope that one day we can stop mining the earth altogether. ", "Products", "Our goal is a closed-loop supply chain. ", "Apple GiveBackTrade in your device for an Apple Store Gift Card. Or have it recycled responsibly for free. See how it works gt; ", "How we define “closed loop”\n", "The four aspects of a closed-loop supply chain: ", "Mining less from the earth. And more from old devices.", "Supplier responsibility", "Learn more gt;", "We hold ourselves and our \nsuppliers to the highest standard when it comes to human rights, \nenvironmental protection, and responsible business practices\nin our supply chain. \n", "For every 100,000 iPhone devices, Daisy has the potential to recover:", "Daisy disassembles iPhone, retrieving components that contain high-quality materials.", "Main Logic Board", "Speaker", "Receiver", "Rear Camera", "Dock Flex", "Alert Module", "Enclosure", "In our Reliability Testing Lab, one of the tests uses a weighted pendulum that simulates a swinging arm hitting Apple Watch against a hard object. ", "Making a material difference.", "Plastic and fiber packaging footprint (metric tons)", "Increase responsible management of working forests in China—by creating up to 300,000 acres of FSC-certified forests, and up to \n700,000 acres of forests under improved management.", "Improve China’s policy framework to encourage responsible forest management.", "Establish long-term market incentives in China for responsibly sourced paper.", "We mapped our water use to different levels of water risk (as defined by WRI’s Aqueduct tool) across the world to understand where we should be focusing our conservation efforts. Water risk takes into consideration indicators such as water scarcity, business risk, and habitat and livelihood impact to the basins in which we operate.21", "text_4", "Download PDF ", "Read more about our paper and\npackaging strategy. \n", "The U.S. retail packaging of the\niMac Pro contains 78 percent less\nplastic than the similarly sized 27-inch iMac with Retina 5K display, and \ncontains 85 percent recycled content. ", "100% ", "All the fiber in our product packaging \nis now 100% responsibly sourced.", "Sustainably managed forest, \nBrunswick County, North Carolina.", "100% ", "We have protected or created \nenough responsibly managed \nforests to cover the 51,000 metric \ntons of virgin paper we used in \nour packaging in fiscal year 2017.", "In 2017, 22 supplier facilities were certified as Zero Waste, including all our iPhone final assembly sites.", "71%", "We diverted from landfill about \n71 percent of waste across all of Apple’s facilities, including our retail stores. ", " 13.6 billion", "Since 2013, we’ve helped our \nsuppliers save more than 13.6 billion gallons of water—enough to provide every person on the planet with \nalmost 30 glasses of water.", "Starting in 2017, we‘re including as part of Apple‘s footprint, water use at distribution centers and colocation facilities.", "24 million", "We used 24 million gallons of recycled water and captured rainwater in 2017.", "We’ve planted more than 9000 drought-resistant trees at our new campus in Cupertino. We selected many tree varieties native to the area as well as others that could thrive in a range of climate change scenarios.", "Safer Materials", "Safer to make. And to use.", "We lead the industry in reducing or eliminating the harmful substances commonly used in electronics. Through our rigorous process of design, testing, and analysis, we’re constantly \nevolving our products and how we make them. So the materials \nwe use are safer for the environment, the people who make \nour products, and the people who use them.", "Environmental Testing Lab, Cupertino, California.", "Since we built our own Environmental Testing Lab in 2006, we’ve grown it to over 30 times its original size.", "Final assembly facility in\nShanghai, China.", "External Engagement ", "We can do a lot. But we can’t do it alone. ", "We want insights and ideas from those who share our commitment to removing toxins. So we formed our own Green Chemistry Advisory Board, made up of some of the world’s leading toxicologists, researchers, and academics. The board helps us identify innovative ways to minimize or eliminate toxins from our supply chain. We also invite experts from around the world to meet with leaders at Apple. Together, we focus on eliminating toxins at each stage of our process, while sharing our learnings through Green America’s Clean Electronics Production Network. And we seek out the best ideas and insights from key NGOs to help us make our products and processes even safer.", "Better Together", "Leading and listening\nin equal measure.", "Climate change. To support our significant investments in renewable energy, we’ve continued to work with Advanced Energy Economy (AEE), RE100, and We Mean Business. In 2017, we joined several new organizations, including the Hawthorn Club to support executive women in the renewable energy industry and the Business Environmental Leadership Council of the Center for Climate and Energy Solutions (C2ES). We also joined the Green Electricity Consumption Cooperative as a Board Member Company to support the use of voluntary renewable energy certificates \nin China. ", "Resources. Our work on creating closed-loop material supply chains is backed by our memberships with the Ellen MacArthur Foundation and the Aluminum Stewardship Initiative.", "Safer materials. We’re members of the ChemSec Business Group, where \nwe work with like-minded companies across a diversity of sectors to refine our knowledge of safer materials. And we were founding members of Green America’s Clean Electronics Production Network. In 2017, we joined the Green Chemistry and Commerce Council (GC3) to advance the application of green chemistry in product design and supply chains. ", "Conservation of coastal riches", "Combating climate change", "Preserving forests", "Ensuring sustainable food sources", "Providing safe and secure water", "Saving sea turtles and tigers ", "Harmonizing people, nature, and wildlife", "2017 Sustainable Brands conference, where we outlined our ambition to create closed-loop material supply chains.", "The Columbia University Global Energy Summit in New York City; Washington Post Live—A World in Balance: Solutions for Sustainability; and the eighth annual Clean Energy Ministerial (CEM8). At these events, we demonstrated how business has the power to influence renewable energy markets. ", "Ceres Investor Summit at the United Nations, where we underlined the importance of business action and clean energy investment. ", "TechCrunch Disrupt 2017 conference, where we announced that Apple is 100 percent renewable in Japan, setting the example for other tech industry leaders. ", "GreenBiz VERGE 2017 conference, where we urged the business community to take strong action to protect the environment. ", "2017 Forest Stewardship Council’s General Assembly, where we detailed our efforts to reduce our packaging paper footprint. ", "2017 G20 Resource Efficiency Workshop, where we presented on Apple‘s efforts to reduce dependence on finite resources. ", "In June 2017, Apple urged the White House to remain in the Paris climate agreement, to retain American leadership, and to take meaningful action on climate change. ", "In November 2017, Apple joined a number of other companies urging the government of Vietnam to make regulatory changes allowing companies \nto procure renewable energy through direct power purchase agreements. ", "In January 2018, Apple filed comments to the Federal Energy Regulatory Commission, urging it not to finalize a rulemaking that would subsidize fossil fuels, which would limit the ability of renewables to compete in the electricity market. FERC chose not to finalize that rule. ", "In February 2018, Apple filed comments with the Japanese government, calling for the development of a robust and verifiable renewable energy trading system that would help accelerate the deployment of renewable generation in Japan. ", "And in April 2018, we filed individual comments to the U.S. Environmental Protection Agency, urging it not to repeal the Clean Power Plan because of its importance in reducing emissions in the United States.", "At the 2017 Women’s Forum for \nthe Economy and Society in Paris, \nLisa Jackson discussed Apple’s \nglobal impact through environmental \nleadership and how our values drive \nour business.", "Appendix A", "Apple’s Operations: Environmental Data", "Facilities Environmental Performance Indicators (Page 48)", "Product Environmental Performance Indicators (Page 49)", "Scopes 1 and 2 Carbon Emissions Breakdown (Page 50)", "Fiscal Year 2017 Natural Gas and Electricity Use (Page 51)", "Facilities Environmental \nPerformance Indicators ", "The following table summarizes environmental performance indicators relating to Apple’s global facilities, including our data centers, corporate offices, and our 500 retail stores, together occupied by 123,000 Apple employees.¹", "KPI", "Unit", "Fiscal Year", "2017", "2016", "2015", "2014", "2013", "2012", "Greenhouse Gas Emissions", "Scope 1", "metric tons \nCO₂e", "42,860", " 34,400 ", " 28,100 ", " 28,490 ", " 29,300 ", " 21,220 ", "Natural gas, diesel, propane²", "34,560", "27,000", " 19,360³", " 20,710 ", " 22,090 ", " 14,300 ", "Fleet vehicles", "8300", " 7400 ", " 8740 ", " 7780 ", " 7210 ", " 6920 ", "Process emissions4", "2540", "Scope 2⁵", "36,250", " 41,000 ", " 42,460 ", " 63,210 ", " 91,510 ", " 139,160 ", "Scope 3⁶", "293,440", " 303,910 ", " 312,910 ", " 259,130 ", " 225,630 ", " 202,060 ", "Business travel", "121,000", " 117,550 ", " 139,940 ", " 110,940 ", " 90,948 ", " 85,090 ", "Employee commute7", "172,970", " 186,360 ", " 172,970 ", " 148,190 ", " 134,685 ", " 116,970 ", "Total facilities emissions (Scopes 1, 2, 3)", "372,550", " 379,310", " 383,470", " 350,830 ", " 346,440 ", " 362,440 ", "Energy Use", "Electricity", "million kWh", "1830", " 1420 ", " 996 ", " 839 ", " 708 ", "608*", "U.S.", "1536", " 1157 ", " 831 ", " 702 ", "590", "International", "296", " 262 ", " 166 ", " 137 ", "118", "Natural gas", "million btu", "1,225,210", " 974,570 ", " 851,660 ", " 922,860 ", " 764,550 ", " 304,000 ", "U.S.", "1,127,550", " 901,950 ", " 794,830 ", "840,490", "676,630", "240,230", "International", "97,660", " 72,620 ", " 56,830 ", "82,370", "87,920", "63,770", "Energy \nEfficiency", "Electricity saved as a result of energy efficiency measures (cumulative since 2011)⁹", "kWh", "69,989,660", " 55,288,800 ", "37,875,000", "31,225,000", "26,241,600 ", "11,354,200 ", "Natural gas saved as a result of energy efficiency measures (cumulative since 2011)⁹", "million \nbtu ", "2,453,410", "2,228,477", " 1,676,735", "1,431,215 ", "1,238,291 ", "548,508 ", "Renewable \nEnergy", "Renewable energy sourcing (calendar year)¹⁰", "97", " 96 ", " 93 ", " 87 ", " 73 ", " 60 ", "Emissions avoided as a \nresult of renewable energy sourcing (scopes 1 and 2)", "metric tons CO₂e", "625,000", "569,000", "362,000", " 283,000 ", " 214,000 ", " 118,000 ", "Water Use¹¹", "Total", "million \ngallons", "1000", "630", "573", "494 ", "430 ", "345 ", "Data centers", "410", "207", "166", " 113 ", " 69 ", " 57 ", "Retail", "110", "99", "111", " 103 ", " 94 ", " 71 ", "Corporate", "480", "324", "296", " 278 ", " 267 ", " 217 ", "Waste \nGeneration12", "Landfilled", "pounds", "31,595,200", " 21,618,850 ", " 13,110,880 ", " 6,833,000 ", " 5,923,810 ", " 4,850,160 ", "Recycled ", "68,509,300", " 28,198,560 ", " 19,599,570 ", " 14,621,940 ", " 15,866,650 ", " 11,464,020 ", "Composted", " 14,567,500", " 13,737,320 ", " 3,006,170 ", "Hazardous waste", "3,342,700", " 2,287,320 ", " 1,002,300 ", " 508,040 ", " 70,550 ", " 123,460 ", "Waste to energy", "645,000", "Landfill diversion rate", "71", "66", "63", "68", "73", "70", "Product Environmental \nPerformance Indicators", "www.apple.com/environment/reports", "We also publish individual product environmental reports for all of our products. These are available at \n", "Fiscal Year", "2017", "2016", "2015", "Scope 3 - Life cycle greenhouse gas emissions \n(metric tons CO₂e)²", "27,100,000", "29,200,000", "38,000,000", "Manufacturing", "21,100,000", "22,800,000", "29,600,000", "Product transportation", "1,200,000", "1,200,000", "1,300,000", "Product use", "4,700,000", "4,900,000", "6,600,000", "End of Life³", "100,000", "300,000", "500,000", "Packaging fiber footprint (metric tons)", "145,000", "129,000", "133,000", "Recycled fiber", "65%", "62%", "60%", "Responsibly sourced virgin fiber", "35%", "38%", "40%", "Other virgin fiber", "lt;1%", "lt;1%", "Packaging plastics footprint (metric tons)", "24,000", "34,000", "36,000", "Average power use (kWh/year)", "7.2", "7", "8.4", "Table_data_semibold__96", "Safer materials", "Arsenic⁴", "Removed from glass by 2008", "PVC⁵", "PVC-free AC power cord available in all regions except India and South Korea", "Beryllium", "Eliminated from all new product designs. Beryllium is found in copper alloys used to make connectors and springs", "Mercury", "Eliminated in display 2009", "Lead⁶", "Phased out of display glass and solder in 2006", "Brominated flame retardants (BFRs)⁷", "Eliminated from thousands of parts since 2008", "To model the manufacturing phase, we use part-by-part measurements of the entire product along with data on part production. The measurements help us accurately determine the size and weight of the components and materials in the product, while data on manufacturing processes and yield loss during production allows us to account for the impact of manufacturing. The LCA includes accessories, packaging, and units that are repaired and replaced through AppleCare.", "To model customer use, we measure the power consumed by a product while it is running in a simulated scenario. Daily usage patterns are specific to each product and are a mixture of actual and modeled customer use data. For the purposes of our assessment, years of use, which are based on first owners, are modeled to be four years for macOS and tvOS devices and three years for iOS and watchOS devices. Most Apple products last longer and are passed along, resold, or returned to Apple by the first owner for others to use. More information on our product energy use is provided in our Product Environmental Reports.", "To model transportation, we use data collected on shipments of single products and multipack units by land, sea, and air. We account for transporting materials between manufacturing sites; transporting products from manufacturing sites to regional distribution hubs; transporting products from regional distribution hubs to individual customers; and transporting products from final customers to recycling facilities.", "To model recycling, we use material composition data on our products and cover the treatment steps carried out by the recycler to obtain metal, plastic, and glass material streams. Subsequent processing and remelting steps are not included, as these are considered stages of production and not end‑of‑life processing.", "After we collect data about production, use, transport, and recycling, we combine it with detailed greenhouse gas emission data. This emission data is based on a combination of Apple-specific and industry-average datasets for material production, manufacturing processes, electricity generation, and transportation. Renewable energy used in the supply chain, initiated by suppliers independently or through the Apple Supplier Clean Energy Program, are also accounted for. Combining product-specific data with emission data in our LCA tool allows us to compile detailed results for greenhouse gas emissions as they relate to the product. The data and modeling approaches are checked for quality and accuracy by the Fraunhofer Institute in Germany.", "Scopes 1 and 2 Carbon Emissions \nBreakdown (metric tons CO₂e)", "Fiscal Year", "2017¹", "2016", "2015", "Location", "Scope 1", "Scope 2", "Scope 1", "Scope 2", "Scope 1", "Scope 2", "Corporate", "25,430", "33,290", "20,537", "30,408", "15,415", "19,564", "Data centers", "13", "0", "Retail stores", "4920", "1440", "3679", "8924", "3800", "22,893", "Business fleet", "8299", "7370", "8744", "Process emissions³", "2538", "Totals", "45,397", "36,250", "34,324", "40,953", "27,972", "42,457", "Fiscal Year", "2014", "2013", "2012", "Location", "Scope 1", "Scope 2", "Scope 1", "Scope 2", "Scope 1", "Scope 2", "Corporate", "15,335", "21,555", "13,727", "17,503", "11,343", "48,215", "Data centers", "18", "0", "2201", "0", "146", "Retail stores", "5355", "41,658", "6158", "74,002", "2812", "83,285", "Business fleet", "7778", "7214", "6923", "Totals", "28,486", "63,213", "29,300", "91,505", "21,224", "139,164", "https://www.epa.gov/climateleadership/center-corporate-climate-leadership-ghg-emission-factors-hub", "Scope 1 emissions result from natural gas use in buildings, and gasoline use for fleet vehicles. As is typical, these emissions are tracked separately from our 100% renewable energy claim. Starting in FY2016, \nScope 1 emissions capture diesel use in emergency backup generators and propane gas use in corporate offices. Scope 1 emissions are calculated using emissions factors from EPA clean energy website \n\n", "Fiscal Year 2017 Natural Gas and \nElectricity Use", "The chart below provides a detailed breakdown of fiscal year 2017 energy use, which is used to calculate our carbon emissions.", "Table_head_8_10_11", "Fiscal Year 2017", "Natural Gas", "Electricity", "Location", "Corporate", "556,970", "85,990", "544", "488", "Data centers", "575,600", "575,040", "1106", "1103", "Retail stores", "92,600", "0", "182", "179", "Totals", "1,225,170", "661,030", "1852", "1770", "Percent Renewable²", "54%", "97%", "¹ We’ve updated our FY2016 colocation facilities footprint to reflect more accurately Apple’s operational boundaries. Per the WRI Greenhouse Gas Protocol, we’ve removed electricity use associated with \ncolocation facility cooling and building operations. This energy use, however, is still covered by renewable energy.", "Appendix B ", "Data Center Energy Supplement", "Table_head_7_10", "Maiden, North Carolina—100% renewable since opening June 2010", "Table_head_7_10_0", "273 million kWh energy use in fiscal year 2017", "Duke Energy Default Grid Mix", "Apple Actual Renewable Energy Use", "Nuclear", "51%", "Apple’s Solar PV Projects", "42%", "Coal", "33%", "Apple’s Biogas Fuel Cells", "27%", "Other", "16%", "Duke Green Source Rider (100% solar PV)", "12%", "Renewable", "lt;1%", "NC GreenPower (100% solar PV)", "19%", "2017 Default Emissions\n(mtons CO₂e/year)", "100,480", "2017 Effective Emissions\n(mtons CO₂e/year)", "0", "From Duke Energy Carolinas 2015 Statistical \nSupplement generation data", "Actual fiscal year 2017 energy data", "Table_head_7_10_3", "Newark, California—100% renewable since opening January 2013", "Table_head_7_10_4", "118 million kWh energy use in fiscal year 2017", "Pacific Gas amp; Electric Default Grid Mix", "Apple Actual Renewable Energy Use", "Natural Gas", "17%", "Bundled Grid (mostly wind)", "91%", "Nuclear", "24%", "Grid (mostly wind)", "9%", "Other/Unspecified", "26%", "Renewable", "33%", "2017 Default Emissions\n(mtons CO₂e/year)", "23,300", "2017 Effective Emissions\n(mtons CO₂e/year)", "0", "Link_18", "www.energy.ca.gov/pcl/labels/2016_labels/\n", "Actual fiscal year 2017 energy data", "Table_head_7_10_7", "Prineville, Oregon—100% renewable since opening May 2012", "Table_head_7_10_8", "195 million kWh energy use in fiscal year 2017", "Pacific Power Default Grid Mix", "Apple Actual Renewable Energy Use", "Coal", "62%", "Apple’s Micro-Hydro Projects", "lt;1%", "Natural Gas", "17%", "Oregon Wind (via Direct Access)", "99.9%", "Other", "6%", "Renewable", "15%", "2017 Default Emissions\n(mtons CO₂e/year)", "57,980", "2017 Effective Emissions\n(mtons CO₂e/year)", "0", "Link_19", "www.pacificpower.net/content/dam/pacific_power/\ndoc/About_Us/Rates_Regulation/Oregon/11536-9_PP_ORLabelingInsert_LrgBiz_F.pdf", "Actual fiscal year 2017 energy data", "Reno, Nevada—100% renewable since opening December 2012186 million kWh energy use in fiscal year 2017NV Energy—North Default Grid MixApple Actual Renewable Energy UseNatural Gas52%Apple‘s Solar PV Projects99.7%Coal22%Other Solar PV (PPA)0.3%Other3%Renewable23%2017 Default Emissions (mtons CO₂e/year)45,8202017 Effective Emissions (mtons CO₂e/year)0www.nvenergy.com/bill_inserts/2017/Power_Content_ Insert_NVE-North_2017-01.pdfActual fiscal year 2017 energy data", "Table_head_7_10_11", "Mesa Arizona—100% renewable since opening March 2017*", "Table_head_7_10_12", "45 million kWh energy use in fiscal year 2017", "Salt River Project (SRP) \nDefault Grid Mix", "Apple Actual Renewable Energy Use", "Coal", "53%", "Apple‘s Solar PV Project", "93%", "Nuclear", "18%", "SRP Solar PV Purchase", "7%", "Natural Gas / Other ", "17%", "Renewable", "12%", "2017 Default Emissions\n(mtons CO₂e/year)", "21,630", "2017 Effective Emissions\n(mtons CO₂e/year)", "0", "Link_20", "www.srpnet.com/about/stations/pdfx/2014irp.pdf", "Actual fiscal year 2017 energy data", "Table_data_left_6_8_7", "*Apple took operational control of the building in October 2015 and converted it to a data center that began servicing customers in March 2017", "Table_head_7_10_15", "Viborg, Denmark—100% renewable (currently in construction)", "Table_head_7_10_16", "37,000 kWh energy use in fiscal year 2017", "Energinet Default Grid Mix", "Apple Actual Renewable Energy Use", "Natural Gas", "8%", "Utility Wind Purchase", "100%", "Coal ", "28%", "Apple’s Wind Project", "pending", "Other / Unspecified", "2%", "Renewable", "62%", "2017 Default Emissions\n(mtons CO₂e/year)", "7", "2017 Effective Emissions\n(mtons CO₂e/year)", "0", "Link_21", "www.aib-net.org/documents/103816/176792/AIB_\n2016_Residual_Mix_Results.pdf/6b49295b-ad99-\na189-579e-877449778f62", "Actual fiscal year 2017 energy data", "Total Energy Use (kWh)", "Renewable Energy (kWh)", "Default Utility \nEmissions¹ \n(metric tons CO₂e)", "Apple’s Emissions—Including Renewable Energy² \n(metric tons CO₂e)", "Percent \nRenewable\nEnergy³ ", "FY2011", "42,500", "0", "10", "10", "0%", "FY2012", "38,552,300", "1,471,680", "17,200", "16,500", "4%", "FY2013", "79,462,900", "46,966,900", "31,800", "14,500", "59%", "FY2014", "108,659,700", "88,553,400", "44,300", "11,000", "81%", "FY2015", "142,615,000", "121,086,100", "60,500", "12,700", "85%", "FY2016⁴", "145,520,900", "143,083,200", "66,300", "1,600", "98%", "FY2017", "289,195,800", "286,378,100", "125,600", "1,500", "99%", "Percent\nRenewable Energy*", "U.S.", "228,114,700", "228,014,600", "100%", "Europe", "23,355,300", "20,637,700", "88%", "APAC", "37,725,800", "37,725,800", "100%", "FY2017 Total", "289,195,800", "286,378,100", "99%", "Solar + Biogas fuel cells", "Wind", "Wind + Low-impact hydro", "Solar", "Solar", "Wind", "Appendix C", "Assurance and Review Statements", "(Pages 60–62)", "Bureau Veritas: Corporate energy, carbon, waste, and water data \n\n", "(Pages 63–66)", "Fraunhofer Institute: Product life cycle carbon footprint\n\n", "(Pages 67–69)", "Bureau Veritas: Supplier clean energy program\n\n", "(Pages 70–71)", "Fraunhofer Institute: Comprehensive fiber footprint \n\n", "(Pages 72–74)", "Fraunhofer Institute: Packaging plastic footprint \n\n", "Appendix D", "Environmental Health and Safety Policy Statement ", "Meet or exceed all applicable environmental, health and safety requirements. We will evaluate our EHS performance by monitoring ongoing performance results and through periodic management reviews. ", "Where laws and regulations do not provide adequate controls, we will adopt our own standards to protect human health and the environment. ", "Support and promote sound scientific principles and fiscally responsible public policy that enhance environmental quality, health and safety. ", "Advocate the adoption of prudent environmental, health and safety principles and practices by our contractors, vendors, and suppliers. ", "Communicate environmental, health, and safety policies and programs to Apple employees and stakeholders. ", "Design, manage and operate our facilities to maximize safety, promote energy efficiency, and protect the environment. ", "Strive to create products that are safe in their intended use, conserve energy and materials, and prevent pollution throughout the product life cycle including design, manufacture, use, and end-of-life management. ", "Ensure that all employees are aware of their role and responsibility to fulfill and sustain Apple’s environmental, health and safety management systems and policy.", "environment-report@apple.com", "• To provide feedback on this report, please contact \n", "www.epa.gov/energy/greenhouse-gas-equivalencies-calculator", "\t8\tGreenhouse gas equivalencies calculated using the U.S. EPA Greenhouse Gas Equivalencies Calculator: \n\n", "https://ic.fsc.org/en/what-is-fsc-certification/controlled-wood", "\t17\tFor more details on FSC Controlled Wood standards, see Forest Stewardship Council. “FSC Controlled Wood.” 2017. \n", "www.wri.org/our-work/project/aqueduct", "\t21\tSource: World Resources Institute (WRI) Aqueduct, \n", "www.eia.gov/electricity/sales_revenue_price/pdf/table5_a.pdf", "\t26\tCarbon emissions equivalences calculated using U.S. Energy Information Administration, 2016 data: \n\n" ]

[ "Our data centers are built with the environment in mind, often including innovative energy efficiency measures. In fact, three of our data centers—in North Carolina, Oregon, and Nevada—earned Leadership in Energy and Environmental Design (LEED) Platinum certification from the U.S. Green Building Council, the highest level possible.\nSingapore is so densely populated that there’s no space on the ground for a large-scale solar project. So we designed an entirely new solution. We worked with local renewable energy provider Sunseap to source clean energy from roughly 32 megawatts of solar panels on more than 800 rooftops in the city. This first-of-its-kind project will produce enough energy to run all our Singapore offices and our part of the shared data center that we use for extra computing capacity.\nTo further advance the renewable energy market in Singapore and to ensure accountability and traceability of our generation, Apple worked closely with APX (a renewable energy tracking software developer) and other key partners to develop a regional renewable energy tracking system, similar to those in North America and Europe. Apple is using the tracking system now and soon it will be opened to renewable energy \ngenerators and purchasers in Singapore and elsewhere in Asia.\nThe new Apple campus in Cupertino will be the most energy-efficient building of its kind. We’re recycling or reusing over 95 percent of the material from the demolished buildings at the site, by finding ways to repurpose virtually every piece of concrete, glass, and steel.\nThe building will be powered by 100 percent renewable energy, generated by 4 megawatts of baseload biogas fuel cells and 16 megawatts of rooftop solar—one of the \nlargest onsite corporate solar energy installations in the world. When additional energy is needed, it will come from a 130-megawatt solar project in Monterey County thanks to Apple’s power purchase agreement with First Solar. The site is designed as a micro-grid—which allows Apple to disconnect from the local grid and power the campus autonomously when grid power goes down, providing energy resiliency. To support \nthe micro-grid design, the onsite solar energy production will be augmented with \nbiogas fuel cells and battery storage. And air will flow freely between the inside and \noutside of the building, providing natural ventilation for 75 percent of the year, with highly efficient radiant heating and cooling the remainder of the year. \nThe building itself is only part of the story. About 80 percent of the site will be open space, populated by more than 8000 trees, which includes over 7000 newly planted shade and fruit trees. Virtually all plants used throughout the landscape are drought-tolerant to minimize freshwater use. We’re also reclaiming as much rainwater as we can, and 157,000 gallons of recycled water from the city of Sunnyvale’s recycling facility will be used for the majority of our landscaping water needs at the new campus. By investing in recycled water, we are helping to ease the demand for freshwater in Cupertino.\nTransporting hundreds of millions of products uses a lot of energy. Our logistics team \nis focused on reducing our carbon footprint in this area. That includes looking for opportunities to make air and ocean shipping more efficient so they use less fuel. \nAnd because we’re working to make our devices lighter and the packaging smaller, we’re cutting down on emissions no matter how our products are delivered.\nUnlike many of our competitors, we include all the energy used to recycle our products in our carbon footprint. So whenever possible, we recycle our products in the region where they’re collected, reducing the carbon emissions associated with shipping. When we have to ship, we do it responsibly. Because we work closely with all our recyclers \nand with vetted facilities, nothing is dumped unsafely in developing countries, which is a common problem in our industry.\nRecycling is also good for reducing global carbon emissions. Fewer carbon emissions are created by recycling materials such as aluminum than by mining and smelting \nnew materials. Whoever uses the recycled material can count the carbon savings against their footprint, so we don’t double-count it against ours. \nStory_8\ntext_4\nStory_9\ntext_5\nStory_10\ntext_6\nStory_11\ntext_7\nStory_12\ntext_8", "TR_12", "TD_35\nTD_36\nTD_37\nTD_38\nTD_39", "Lvl_1_head_3\nbody_6\nLvl_1_head_4\nbody_7\ncaptions_in_box\ncaptions_in_box_0\ncaptions_in_box_1\ncaptions_in_box_2\ncaptions_in_box_3\nLvl_2_head\nbody_8", "TR_4", "TD_7\nTD_8\nTD_9\nTD_10\nTD_11\nTD_12\nTD_13", "body_16\nL_1", "Article_6", "Story_42", "Sect_5", "Table_9", "TR_16", "TD_57\nTD_58\nTD_59\nTD_60\nTD_61\nTD_62\nTD_63\nTD_64", "How we make our products is the largest piece of our carbon footprint. We’ve \nidentified two areas where we can dramatically reduce our impact—raw materials \nproduction and electricity used in manufacturing. \nWe started engaging directly with suppliers in 2015 to assess their energy use with detailed energy audits. We work together to find ways to reduce energy use—replacing outdated or inefficient heating, cooling, and lighting systems; repairing compressed air leaks; and recovering waste heat. Through the process, we aim to promote continual improvement; build technical capabilities; and increase awareness of the environmental and financial benefits of energy efficiency.\nWe conducted 13 energy audits at supplier facilities in China, Taiwan, and Japan \nlast year, identifying more than US$32 million in annual savings opportunities. This corresponds to reductions of approximately 224 million kilowatt-hours of electricity and 269,000 million British thermal units of fuel. From these identified improvements, suppliers have already reduced over 18 million kilowatt-hours of electricity, avoiding 13,800 metric tons of carbon dioxide equivalents (CO2e).1 We are continuing to expand the program for even greater impact.\nOur efforts go beyond energy efficiency to spur the development and procurement \nof renewable energy within our supply chain. We’re building 200 megawatts of solar in China, starting with a 170-megawatt solar project in Inner Mongolia, to begin offsetting our manufacturing emissions. We’re also working with suppliers to install more than 4 gigawatts of new clean energy worldwide, including 2 gigawatts in China by 2020. Our 4 gigawatts of clean energy projects will avoid over 30 million metric tons of \ncarbon pollution, equivalent to taking over 6 million cars off the road for one year.2\nThe transition to renewable energy can be highly technical. It often requires complicated deal structures across many regions with their own regulatory requirements. Apple is experienced in sourcing and building renewable energy—quickly and at a high standard across the globe—so we are working with our suppliers to help them overcome challenges. We know that, with some hard work and collaboration, suppliers can reduce their own carbon footprint through the development of high-quality and cost-effective renewable energy projects. As part of Apple’s industry-leading program, over the next two years, Foxconn will install 400 megawatts of solar to cover the \nenergy use of its iPhone final production facility in Zhengzhou, China.\nLowering our carbon emissions by focusing on aluminum.\nAll of the energy it takes to run your device—from the time you open the box to the day it’s recycled—is added to our carbon footprint. We even include the energy it takes to charge your device, which usually comes from carbon-intensive sources such as coal or gas. So we’re always developing new ways to make our products as efficient as possible. For example, the Mac operating system puts the hard drive to sleep and runs processors in an ultralow power mode when you’re not hard at work. It can even save energy when the screen is static and between keystrokes when you type.\nIn fiscal year 2015, by using renewable energy in Apple facilities, we avoided 335,000 metric tons of CO2e emissions from entering the atmosphere, the equivalent of 359,828,142 pounds of coal not burned.2 Sourcing renewable landfill biogas to power our fuel cells avoided an additional 27,000 metrics tons of CO2e in fiscal year 2015. Altogether, since fiscal year 2011, we have reduced carbon emissions from Apple facilities by 64 percent—avoiding over 1 million metric tons of CO2e from entering \nthe atmosphere. \n_P__0\nStory_4\ntext_0\nStory_5\ntext_1", "For years, we’ve led the electronics industry in removing toxins from devices. This past year, we started a Full Material Disclosure program, which will show us the chemical composition of every material in every component of our products. It also makes us even better at reducing or removing toxins. And once we figure out how to remove a toxin from a device or a manufacturing process, we use extensive testing to make sure it stays out.\nOur Full Material Disclosure program seeks to identify all the substances we use in all the parts we use. We’ve already looked at more than 10,000 individual components, and we get data on more parts every day. We assess the different chemicals in those components using 18 different criteria. This helps us understand their effect on our health and on the environment. If we do find an unacceptable risk, we then seek \nalternatives or ban the substance altogether. \nWe start this process early in the design and manufacturing phases so we can take appropriate actions to remove or replace hazardous chemicals. In some cases, few replacements are readily available so we work with our suppliers to find substitutions—or switch to another supplier that uses safer materials. If there is no replacement for \nthe substance, we work with our design teams to explore how to eliminate the need for that substance. \nIt took us four years to remove polyvinyl chloride, or PVC, from our power cords and headphone cables. We tested dozens of formulations until we finally found the right blend of durability, safety, and environmental performance in our PVC replacement materials: nonchlorinated and nonbrominated thermoplastic elastomers. \nWe want insights and ideas from those who share our commitment to removing \ntoxins. So, we formed our own Green Chemistry Advisory Board made up of some of the world’s leading toxicologists, researchers, and academics. They help us identify\ninnovative ways to minimize or eliminate toxins from our supply chain. And we’re allowing the advisory board members to use our data to develop and publish research, which we hope will advance the use of safer chemistry, materials, and processes in \nall industries.\nWe also invite experts from around the world to meet with leaders at Apple and we seek out the best ideas and insights from top NGOs. In 2015, we worked with Ceres to convene a roundtable meeting with United States–based and international NGOs to gather feedback on our toxins work. By working with organizations that share Apple’s focus and commitment to the elimination of toxics, we believe that we will achieve better, faster results that will have greater impact across the world.\nStory_24\ntext_16\nStory_25\ntext_17", "We also see a huge opportunity to improve the way we reclaim finite resources \nfrom our products. Existing recycling techniques, like shredding, only recover a few kinds of materials and often diminish their quality. So we invented Liam, a line of robots designed to disassemble 1.2 million phones a year, sorting all their high-quality components and reducing the need to mine more resources from the earth. Liam \nprototypes are operating in California and the Netherlands. It’s an experiment in recycling technology, and we hope this kind of thinking will inspire others in our industry.\nAdditionally, we’re committed to making sure all the waste created by our final assembly facilities and by us is reused, recycled, composted, or, when necessary, converted into energy. It’s an ambitious goal that requires collaboration among multiple Apple teams, local governments, and specialty recyclers, but we’ve already seen great success. In 2015, our facility in Cork, Ireland, was the first outside North America to receive UL’s Zero Waste to Landfill validation. In 2016, our final assembly sites, Foxconn Guanlan and Foxconn Taiyuan, were the first to receive this validation in China, and all our remaining iPhone and Apple Watch final assembly sites are on track to do the same before 2017.5 And most recently, all our stores worldwide have initiated zero waste programs.\nWe found that our final assembly supplier facilities were already diverting on average 70 percent of the waste generated from manufacturing, cafeterias, and employee support facilities. The challenge was to address the remaining 30 percent—the small, low- or no-value, mixed waste materials that most recyclers will not accept. We worked closely with our suppliers to find innovative ways to reduce, recycle, eliminate, or incinerate this waste for energy recovery. For example, at many of our iPhone and Apple Watch final assembly facilities, we implemented waste sorting on the line to separate previously landfilled recyclable waste. We also implemented a component tray reuse program for iPhone, allowing single-use trays to flow through the supply chain multiple times. At other sites, suppliers established waste reduction campaigns and worked with local recyclers to process materials not previously accepted. In response to this program, all iPhone and Apple Watch final assembly suppliers now have “zero waste”\nor “green” teams to support this program and other environmental improvements.\nApple disposes of hazardous waste responsibly. We complete regular audits of the Transportation, Disposal, and Storage Facilities (TSDF), where the hazardous waste is ultimately sent to be treated, incinerated, or recycled. Only facilities we audit and approve are allowed to accept and treat the hazardous waste we generate, which was 1 million pounds in fiscal year 2015 (mostly from research and development), or less than 8 percent of our total waste. We take this commitment seriously: If the TSDFs do not meet our strict standards for environment, health, safety, and waste management protocols, we switch facilities.\nWater Conservation\nWe’re constantly working to minimize our water use, so we monitor it within our \ncooling, landscaping, and sanitation processes and at our manufacturing sites. Then \nwe develop targeted ways to reduce it. That includes creating cooling systems in our data centers that can reuse water up to 35 times. Or, for facilities in drier climates, installing intelligent irrigation systems that monitor weather and deploy water only when needed.\nIn 2015, we started collecting even more sophisticated data to help strengthen our conservation strategy. We’ve begun to measure the water it takes to manufacture each of our products, starting with iPhone. And now we’re identifying the high-, medium-, and low-scarcity areas where we use water, so we can focus our efforts where they matter most.\nWhen we began to measure the water consumption footprint of iPhone, we learned that the story was similar to our product carbon footprint: the vast majority is during the manufacturing phase. This is primarily due to water consumed in energy production, such as for oil extraction, distillation, and processing, as well as non-energy sources, such as process water consumed during metals processing. That’s why we are focusing on reducing water consumption in our supply chain, primarily through our supplier clean water and clean energy programs.\nThe water we use to manufacture our products has a direct effect on the communities in which we operate. We launched the Clean Water Program in 2013 to reduce the use \nof freshwater in our suppliers’ processes. Through 2015, 73 supplier facilities have joined our Clean Water Program—so we can help them improve their water and wastewater \nmanagement systems, and reduce freshwater use. Through baseline assessments, performance evaluations, technical support, and training, we helped these facilities save more than 3.8 billion gallons of freshwater. We’re also focused on reuse of treated wastewater and have achieved an average wastewater reuse rate of 36 percent across these facilities. To ensure our efforts impact areas of greatest need, we prioritize \nfacilities by evaluating water use data, reviewing product life cycle water consumption data to identify water-intensive component suppliers, and mapping that data to \nwater-stressed geographies.\nOf the production water consumption, over 70 percent is associated with electricity generation needed to power our suppliers’ facilities. We know that water consumption varies by energy technology, and that renewable energy sources such as solar PV and wind energy are less water-intensive than conventional forms of energy such as natural gas, coal, or nuclear. Understanding this will help us make decisions, wherever possible, that result in both low-carbon and low-water sources of energy.\nTo meet the water needs of our offices, data centers, and retail stores across the \nworld, Apple used 573 million gallons of water in fiscal year 2015, which represented a 16 percent increase from fiscal year 2014. This increase is driven primarily by growth, as well as increasing cooling needs at our data centers, and we are focusing our water usage reduction efforts on these facilities. \nStory_19\n_H2_\nStory_20\ntext_10", "Table_data_semibold_9\nTable_data_grey_2_9\nTable_data_semibold_10\nTable_data_grey_2_10\nTable_data_semibold_11\nTable_data_grey_2_11\nTable_data_semibold_12\nTable_data_grey_2_12\nTable_data_semibold_13\nTable_data_grey_2_13", "Table_data_semibold_29\nTable_data_grey_2_24\nTable_data_semibold_30\nTable_data_grey_2_25\nTable_data_semibold_31\nTable_data_grey_2_26\nTable_data_semibold_32\nTable_data_grey_2_27\nTable_data_semibold_33\nTable_data_grey_2_28", "LI_2", "LBody_9\nLBody_14\nLBody_15\nLBody_16\nLBody_17\nLBody_18", "Report Notes:\n1CO2e, or carbon dioxide equivalent, is a standard unit for measuring carbon footprints. It translates into one number the impact of different greenhouse gases based on their potential to contribute to climate change.\n2Greenhouse gas equivalencies calculated using the U.S. EPA Greenhouse Gas Equivalencies Calculator:\nwww.epa.gov/energy/greenhouse-gas-equivalencies-calculator.\n3Based on the average residential cost of electricity in the U.S. in 2015; includes customer use scenarios and power consumed by the power adapter when disconnected from the iPhone.\n4Calculations based on sales-weighted averages for all energy-using Apple-branded products in the given years.\n5In Brazil, sanitary waste is legally mandated to be landfilled as biohazard waste. Because of this regulatory requirement, UL is exempting \nsanitary waste from the zero waste to landfill validation currently underway at the Foxconn final assembly facility in São Paulo, Brazil. \nAs of March 2016, sanitary waste represented 4 percent of total waste at this facility.\n6Water consumption is calculated using NREL source data, Operational Water Consumption and Withdrawal Factors for Electricity Generating Technologies, 2012. Savings estimated from use of renewable energy is not reflected in our facilities’ water-use calculations.\n7Based on equivalent virgin fiber production from protected forests and virgin fiber used for product packaging.\n8In terms of global and statewide occurrence.\n9Based on estimates of the volume of virgin fiber required to produce our packaging and the volume of virgin fiber produced by those \nforests protected through our partnership with The Conservation Fund.\n10Hunan, Guangxi, Guangdong, Fujian, and Yunnan.\n11Every Apple product is free of PVC and phthalates with the exception of power cables in India and South Korea, where we continue to \nseek government approval for our PVC and phthalates replacement. \nUpdated September 2016.\nAdded energy and emissions tables for colocated facilities to Appendix B.\n© 2016 Apple Inc. All rights reserved. Apple, the Apple logo, AirPort Express, AirPort Extreme, Apple TV, Apple Watch, FaceTime, iMac, iMessage, iPad, iPhone, iPod, iTunes, Mac, Mac Pro, MacBook, MacBook Air, MacBook Pro, and Siri are trademarks of Apple Inc., registered in the U.S. and other countries. iPad Pro is a trademark of Apple Inc. Apple Store is a service mark of Apple Inc., registered in the U.S. and other countries. ENERGY STAR is a U.S. registered mark. Other product and company names mentioned herein may be trademarks of their respective companies. \nSepteber 2016", "Apple Inc. is committed to protecting the environment, health, and safety of our employees, customers and the global communities where we operate.\nWe recognize that by integrating sound environmental, health, and safety management practices into all aspects of our business, we can offer technologically innovative products and services while conserving and enhancing resources for future generations.\nApple strives for continuous improvement in our environmental, health and safety management systems and in the environmental quality of our products, processes, and services.\nMeet or exceed all applicable environmental, health and safety requirements. \nWe will evaluate our EHS performance by monitoring ongoing performance results \nand through periodic management reviews.\nWhere laws and regulations do not provide adequate controls, we will adopt our own standards to protect human health and the environment.\nSupport and promote sound scientific principles and fiscally responsible public policy that enhance environmental quality, health and safety.\nAdvocate the adoption of prudent environmental, health and safety principles and practices by our contractors, vendors, and suppliers.\nCommunicate environmental, health, and safety policies and programs to Apple employees and stakeholders.\nDesign, manage and operate our facilities to maximize safety, promote energy \nefficiency, and protect the environment.\nStrive to create products that are safe in their intended use, conserve energy and \nmaterials, and prevent pollution throughout the product life cycle including design, manufacture, use, and end-of-life management.\nEnsure that all employees are aware of their role and responsibility to fulfill and \nsustain Apple’s environmental, health and safety management systems and policy.\nLuca Maestri\nSenior Vice President and CFO\nJanuary 2016", "Innovation is at the heart of everything we do at Apple, and that extends to our \ncommitment to protecting the natural environment for the future.\nWe believe our planet deserves our best thinking. So we’re constantly striving to find or invent solutions to important environmental challenges—whether it’s a line of robots that disassembles iPhone 6 for recycling, a vast network of solar panels on urban rooftops to power our facilities in Singapore, or new product designs that eliminate harmful \nsubstances like beryllium.\nApple’s 2016 Environmental Responsibility Report, covering fiscal year 2015, is our ninth annual update, highlighting the progress we’ve made and the places we’re working hard to improve. \nFocus and simplify is one of our mantras. So, after deep reflection, data analysis, and \nconversations with stakeholders, we set three priorities where we believe Apple can make the most impact: \nFor starters, as of January 2016, we’re sourcing or generating enough renewable energy to cover 93 percent of the electricity we use at our facilities worldwide. In fact, Apple is now 100 percent renewable in 23 countries, including China, Germany, Singapore, and the United States. We’re also 100 percent renewable at every one of our data centers. So whenever you send an iMessage, download a song from iTunes, or ask Siri a question, the energy Apple uses doesn’t contribute to climate change.\nIn the past five years, we have reduced the carbon footprint of Apple facilities by \n64 percent thanks to our clean energy use, avoiding over 1 million metric tons of \ncarbon emissions. We’re working hard to reach 100 percent renewable energy for all \nof our facilities worldwide, and help our suppliers in China and everywhere around \nthe world make the same transition to clean energy as we have.\nWe’re as committed as ever to conserving precious resources. In 2015, we diverted more than 89 million pounds of e-waste from landfills. And more recently, we introduced Liam, a line of robots that can disassemble an iPhone every 11 seconds and sort its \nhigh-quality components so they can be recycled, reducing the need to mine those resources from the earth. It’s an experiment in recycling technology, and we hope this kind of thinking will inspire others.\nWe’re also making strides in our efforts to preserve working forests, which, when \nmanaged properly, can be important renewable resources. Last year, over 99 percent of our product packaging came from paper that was recycled or sourced from sustainably managed forests. We’re also partnering with The Conservation Fund to protect sustainably managed working forests in the United States, and with World Wildlife Fund to transition forests into responsible management in China.\nFor years, we’ve led the electronics industry in removing toxins such as arsenic, PVC, brominated flame retardants, and phthalates from our products. Many toxins are restricted not only in the products themselves but also in the manufacturing process, because we are committed to the people who make, use, and recycle our products. This past year, we started a Full Material Disclosure program, which will show us the chemical composition of every material in every component of our products so we \ncan understand their effect on our health and on the environment. \nStory_13\ntext_9", "Page 3\tEnvironmental Responsibility at Apple\nPage 5\tClimate Change\nPage 16\tResources\nPage 24\tSafer Materials\nPage 27\tWe’re better together\nPage 28\tAppendix A\nPage 33\tAppendix B\nPage 37\tAppendix C \nPage 47\tAppendix D \nPage 48\tAppendix E", "Article_5", "Story_39", "Sect_3", "Table_8", "TR_15", "TH_26\nTD_55\nTD_56", "Manufacturing a smaller footprint. \nPartnering with suppliers to reduce emissions. \nThe electricity we use in our supply chain to process raw materials, make parts, and assemble our products is the single biggest source of our carbon footprint—over \n60 percent of our manufacturing emissions. So in 2015, we created programs to help our partners around the world reduce their energy use, power their facilities with \nclean energy, and build high-quality renewable energy projects.\nYour energy use is our energy use. \nGo ahead, ask Siri all the questions you want.\nEvery time you send an iMessage, make a FaceTime call, ask Siri a question, download \na song, or share a photo, it takes energy. And we hold ourselves responsible for that energy, not you. We’re proud to say that all those tasks are handled by Apple data \nservers running on 100 percent renewable energy. When we need a little extra juice, we work with third-party data centers. Even though we don’t own them, and share them with other companies, we still include them in our renewable energy goals. So we’re working with these providers to get them to 100 percent renewable energy, too. All \ntold, in 2014 our data centers avoided 150,000 metric tons of CO2e emissions. And in \n2015, that number grew to 187,000 metric tons. \nWe use the power of the sun, wind, and water to power our lights, servers, and coffeemakers.\nStory_7\ntext_3", "_H1_\nbody_0\nStory_3", "100 percent of our data centers run on \n100 percent renewable energy.\nInnovating on rooftops in Singapore.\nWe’re powering 97 percent of our Apple \nStores with renewable energy. That’s almost good enough.\nAs of April 2016, we are powering 463 Apple Stores in 13 countries with 100 percent renewable energy. Our preferred method is to generate renewable energy from Apple-created projects to cover our stores’ electricity use. For many of our other retail stores, we purchase renewable energy from third-party providers. And where local regulations don’t allow these options, we participate in utility green tariff programs, collaborate with landlords to purchase renewable energy on our behalf, or procure renewable energy certificates that meet strict verification standards.\nHome green home. \nWe’re lessening our impact when we \ncommute or hit the road. \nReducing our carbon emissions by air and sea. \nRecycling counts toward our footprint, too. ", "TR", "TH\nTH_0\nTH_1", "Cupertino, CA\nElk Grove, CA\nAustin, TX\nOther U.S.\nCork, Ireland\nSingapore\nChina\nOther International", "14,310\n411\n148\n115\n1000\n51\n385\n296", "12,929\n411_0\n148_0\n115_0\n1000_0\n51_0\n385_0\n296_0", "36,496\n2516\n15,149\n2270\n7678\n6852\n8577\n7304", "0\n0_0\n0_1\n0_2\n0_3\n6852_0\n8577_0\n6126", "Cupertino, CA_0\nElk Grove, CA_0\nAustin, TX_0\nOther U.S._0\nCork, Ireland_0\nSingapore_0\nChina_0\nOther International_0", "14,792\n369\n233\n121\n892\n0_13\n117\n435", "13,256\n369_0\n233_0\n121_0\n892_0\n0_14\n117_0\n435_0", "42,074\n3279\n20,874\n2715\n6227\n5310\n9050\n16,605", "0_15\n0_16\n0_17\n0_18\n0_19\n3767\n2201\n13,596", "section_heads_left_a\nLvl_1_head_10\nLvl_2_head_2\nLvl_1_head_11\nbody_17", "LI\nLI_0", "Our 2015 carbon footprint \nManufacturing\nProduct Usage\nFacilities\nStory_6\ntext_2", "BerylliumFound in copper alloys used to make connectors and springs. All new products are designed without the use of beryllium. \nMercuryEliminated in 2009. We use energy-efficient, mercury-free LEDs instead of mercury-based fluorescent lamps in all our displays.\nLeadWe completely phased lead out of our display glass and solder in 2006.\nArsenicTraditionally used in glass. Our display glass has been arsenic-free since 2008. \nPVC and PhthalatesBoth are still used by other companies in power cords and headphone cables. We have replaced PVC and phthalates with thermoplastic elastomers.11\nBrominated Flame Retardants (BFRs)Eliminated from thousands of parts such as enclosures, circuit boards, and connectors in 2008. We use safer metal hydroxides and phosphorus compounds in their place. ", "Based on the process and procedures conducted, there is no evidence that the Greenhouse Gas (GHG) assertion with regards to scope 3 corporate carbon footprint  is not materially correct and is not a fair representation of GHG data and information, and  has not been prepared in accordance with the related International Standard on GHG quantification, monitoring and reporting. \nA verification and sampling plan as required by ISO 14046-3 has been established in the course of this CCF review and verification, defining the level of assurance, objectives, criteria, scope and materiality of the verification. As part of this review and verification Apple disclosed following data to Fraunhofer IZM:  Sales data for FY2015, including accessories  Regional distribution of sold units and country specific allocation per product to major sell-in countries  Product specific data on transportation including breakdown of air and sea shipment \n Life cycle GHG emissions for all products, differentiating the actual product configurations (i.e. memory capacity)  Calculation methodology for the company carbon footprint and methodological changes implemented in 2015  The total company carbon footprint – scope 3 for the fiscal year 2015  Detailed analysis of the CCF including: o The breakdown of the CCF into life cycle phases manufacturing, transportation, product use and recycling o Detailed product specific split into life cycle phases o The contribution of individual products and product families to the overall CCF The data and information supporting the GHG assertion were projected (use phase and recycling) and historical (i.e. fiscal year 2015 data regarding sales figures, manufacturing, transportation). This review comprises a check of selected data, which are most influential to the overall company carbon footprint. The overall plausibility check addressed the following questions:  Are product LCAs referenced correctly?  Are results for products, for which no full LCA review was undertaken, plausible?  Are carbon emission data for individual products plausible in the light of methodological changes as indicated by Apple? This review was done remotely. \nPrior to this CCF review and verification 14 recent product LCA studies, including for the first time separately sold accessories, have been reviewed successfully against ISO 14040/44. These recent LCAs cover most important product segments (Apple Watch, iPad, iPhone, iPod, MacBook, MacBook Pro, and Beats products). These latest LCA studies cover products which represent in total 47,2% of the total scope 3 company carbon footprint. Representatives of other product segments (iMac, Mac Pro, Mac Mini, Airport Express / \nAirport Extreme, Apple TV and Cinema Display) underwent no or only minor design changes compared to those which went through a full LCA review in former years. The methodological changes implemented with the 2015 CCF data are confirmed to lead to an improvement in terms of accuracy and real use patterns representation of the results. Inevitably this hampers the comparability of 2015 results with earlier CCF data. All questions raised in the course of the review were answered by Apple and related evidence was provided where needed. \nWe observe from year to year an improvement of the assessment approach in terms of granularity of the used calculation data. This year the use phase models have been enhanced, taking into account real use pattern data. Several additional components are now modelled with primary data from Apple’s suppliers. For all product LCA calculations, where exact data was missing, the principle of a worst-case approach has been followed and results have been calculated with rather conservative estimates regarding e.g. production yield losses and recycling. The review has not found assumptions or calculation errors on the CCF data level that indicate the scope 3 corporate carbon footprint has been materially misstated. The excellent analysis meets the principles of good scientific practice. Berlin, March 24, 2016 - Karsten Schischke - - Marina Proske - Fraunhofer IZM Fraunhofer IZM Dept. Environmental and Dept. Environmental and Reliability Engineering Reliability Engineering ", "Registered by: SAI Global Certification Services Pty Ltd, 680 George St, Level 37-38, Sydney, NSW, 2000, Australia with QMI-SAI Canada Limited, 20 Carlson Court, Suite 200, Toronto, Ontario M9W 7K6 Canada (SAI GLOBAL). This registration is subject to the SAI Global Terms and Conditions for Certification. While all due care and skill was exercised in carrying out this assessment, SAI Global accepts responsibility only for proven negligence. This certificate remains the property of SAI Global and must be returned to them upon request. To verify that this certificate is current, please refer to the SAI Global On-Line Certification Register: www.qmi-saiglobal.com/qmi_companies/ \nThis is to certify that Apple Inc. o perates an Environmental Management System which complies with the requirements of ISO 14001:2004 for the following scope of registration T he management of the environmental risks associated specifically with aspects/impacts associated with functions limited to the quot; Design amp; Engineering quot; Department amp; Corporate Recycling of Apple Inc., 1 Infinite Loop, Cupertino, Ca. \nL_3\ntext_24", "\tApple’s Operations: Environmental Data\nData Center Energy Supplement\nAssurance and Review Statements\nEnvironmental Health and Safety Policy Statement \nEMS Certification", "93%Currently, 93 percent of our facilities worldwide run on renewable energy.\nGreen_Head_Above_Lvl\nLvl_1_head\nbody_1", "We encounter many legal and regulatory frameworks around the world that constrain our renewable energy supply options. In each location, we endeavor to choose the strongest approach available to us as defined by three guiding principles:\nDisplacement. We seek to displace the more polluting forms of energy in the same electric grid region in which we operate—by \nputting into the grid an amount of renewable energy equal to the amount of energy taken from the grid by our facilities.\nAdditionality. We strive to create new clean energy that adds to the energy sources already delivering to the grid. This generally means participating in renewable energy projects that would not have been built without Apple’s involvement. We make sure that the energy we count toward our goals is not counted toward regulatory obligations that utilities must meet, such as the Renewable Portfolio Standards in many states.\nAccountability. We apply rigor in measuring and tracking our energy supply resources, and use third-party registries such as WREGIS and NC-RETS, certification programs such as Green-e Energy, and contractual provisions to ensure that all renewable energy supplied to Apple is supplied only to Apple. When needed, we work with industry partners and governmental entities to create such systems.\nThe best way to think about it is like a bank: You can deposit $20 in one bank branch, then go to another branch and withdraw $20. Renewable energy works in a similar way. And Apple’s renewable energy approach goes a step further to make sure we “deposit” \non the same grid as the energy we are “withdrawing.”", "We have three really good reasons to remove toxins from our products. You, our workers, and the planet. \nWe’ve analyzed over 10,000 parts. And that’s just the beginning.\nThe worst toxins and what we’ve done \nabout them.\nWe double-check our work.\nWe can do a lot. But we can’t do it alone.", "L_2\ntext_18", "Table_subhead_1\nTable_subhead_2\nTable_subhead_3\nTable_subhead_4\nTable_subhead_5", "Table_data_semibold_14\nTable_data_semibold_15\nTable_data_semibold_16\nTable_data_semibold_17\nTable_data_semibold_18", "Table_data_semibold_34\nTable_data_semibold_35\nTable_data_semibold_36\nTable_data_semibold_37\nTable_data_semibold_38", "Bureau Veritas North America, Inc. (BVNA) was engaged by Apple, Inc. (Apple) to conduct an independent assurance of select environmental data reported in its 2015 environmental report (the Report). This Assurance Statement applies to the related information included within the scope of work described below. The intended users of the assurance statement are the stakeholders of Apple. The overall aim of this process is to provide assurance to Apple’s stakeholders on the accuracy, reliability and objectivity of select information included in the Report. This information and its presentation in the Report are the sole responsibility of the management of Apple. BVNA was not involved in the collection of the information or the drafting of the Report. \nApple requested BVNA to include in its independent review the following:  Assurance of select environmental data and information included in the Report for the fiscal year 2015 reporting period (September 28, 2014 through September 26, 2015), specifically, in accordance with Apple’s definitions and World Resources Institute (WRI)/World Business Council for Sustainable Development (WBCSD) Greenhouse Gas Protocol: o Energy: Direct (Million Therms) and Indirect (Million kilowatt hours (mkWh)) o Renewable Energy (mkWH) o Water (Total withdrawal) o Greenhouse Gas (GHG) Emissions: Direct Scope 1 emissions by weight, Indirect Scope 2 emissions by weight, Indirect Scope 3 emissions by weight (Employee Commute and Business Travel) o Waste Quantities and Disposition o Appropriateness and robustness of underlying reporting systems and processes, used to collect, analyze, and review the environmental information reported; Excluded from the scope of our work is any assurance of information relating to:  Text or other written statements associated with the Report  Activities outside the defined assurance period \nBVNA undertook the following activities: 1. Site visits to Apple facilities in Cork, Ireland; London, United Kingdom; Seoul, South Korea; and Singapore; 2. Visit to Apple corporate offices in Cupertino, California; 3. Interviews with relevant personnel of Apple (10 individuals including employees and external contractors at the corporate level); 4. Review of internal and external documentary evidence produced by Apple; 5. Audit of environmental performance data presented in the Report, including a detailed review of a sample of data against source data; and 6. Review of Apple information systems for collection, aggregation, analysis and internal verification and review of environmental data. Our work was conducted against Bureau Veritas’ standard procedures and guidelines for external Verification of Sustainability Reports, based on current best practice in independent assurance. \nBureau Veritas procedures are based on principles and methods described in the International Standard on Assurance Engagements (ISAE) 3000. The work was planned and carried out to provide reasonable assurance for all indicators and we believe it provides an appropriate basis for our conclusions. \nBVNA verified the following indicators for Apple’s Fiscal Year 2015 reporting period (September 28, 2014 through September 26, 2015):", "Based on the assurance process and procedures conducted, we conclude that:  The Energy, Water, Waste, and Scope 1, 2 amp; 3 GHG Emissions assertions shown above are materially correct and are a fair representation of the data and information; and  Apple has established appropriate systems for the collection, aggregation and analysis of relevant environmental information, and has implemented underlying internal assurance practices that provide a reasonable degree of confidence that such information is complete and accurate. \nBVNA is an independent professional services company that specializes in Quality, Health, Safety, Social and Environmental management with over 180 years history in providing independent assurance services, and an annual 2015 revenue of $4.6 billion Euros. No member of the assurance team has a business relationship with Apple, its Directors or Managers beyond that of verification and assurance of sustainability data and reporting. We have conducted this verification independently and we believe there to have been no conflict of interest. BVNA has implemented a Code of Ethics across the business to maintain high ethical standards among staff in their day-to-day business activities. The assurance team has extensive experience in conducting assurance over environmental, social, ethical and health and safety information, systems and processes, has over 20 years combined experience in this field and an excellent understanding of BVNA standard methodology for the Assurance of Sustainability Reports. Attestation: Trevor A. Donaghu, Lead Verifier John A. Rohde, Technical Reviewer Technical Director, Climate Change Services Senior Project Manager Sustainability and Climate Change Services Sustainability and Climate Change Services Bureau Veritas North America, Inc. Bureau Veritas North America, Inc. April 11, 2016 \nFraunhofer IZM reviewed Apple’s scope 3 company carbon footprint (CCF) data related to the products manufactured and sold by Apple Inc. in fiscal year 2015. \nThis review checks transparency of data and calculations, appropriateness of supporting product related data and assumptions, and overall plausibility of the calculated corporate annual carbon footprint comprised of emissions derived from the life cycle assessment (LCA) of Apple products shipped in fiscal year 2015. This review and verification focuses on Scope 3 emissions for products sold by Apple Inc. (as defined by WRI/WBCSD/Greenhouse Gas Protocol – Scope 3 Accounting and Reporting Standard). It is noted that emissions relating to the facilities that are owned or leased by Apple (scope 1 and 2 emissions) as well as business travel and employee commute were subject to a separate third party verification and are therefore excluded from the scope of this statement. Confidential data relating to product sales and shipments were also excluded from the scope of this verification. This review and verification covers Apple’s corporate annual greenhouse gas emissions and does not replace reviews conducted for individual product LCAs for greenhouse gas emissions (GHGs). The life cycle emissions data produced by Apple for individual products has been calculated in accordance to the standard ISO 14040/14044: Environmental management – Life cycle assessment – Principles and framework / Requirements and guidelines. This review and verification furthermore complies with ISO 14064-3: Greenhouse gases -- Part 3: Specification with guidance for the validation and verification of greenhouse gas assertions. The review of the corporate annual carbon footprint has considered the following criteria:  The system, boundaries and functional unit are clearly defined  Assumptions and estimations made are appropriate \n Selection of primary and secondary data is appropriate and methodologies used are adequately disclosed These criteria are also fundamental to the review of LCAs conducted for individual product emissions. The reviewers note that the largest share (98%) of Apple Inc. annual corporate carbon footprint is comprised of scope 3 emissions from individual products. The aforementioned criteria have been regularly reviewed by Fraunhofer IZM since 2007 with a view to providing independent feedback that can facilitate continuous improvement and refinement in the LCA methodology applied by Apple Inc. Data reported by Apple is as follows: ", "2015\n29,599,494 \n1,322,121 \n6,566,851 \n502,547 ", "0.5w Power consumed by the MacBook in sleep mode, the lowest of any Mac.\n7xMac mini exceeds ENERGY STAR requirements by up to seven times.\n97%The power used by the iMac in sleep mode was reduced 97 percent compared with the first-generation iMac. \nThe cost to charge the battery of an iPhone 6s once a day in the United States is 53¢ per year.3", "LI_1", "LBody_5\nLBody_6\nLBody_7\nLBody_8", "Story_18", "We designed a line of robots that can take apart up to 1.2 million phones a year. Meet Liam.\nGreen_Head_Above_Lvl_4\nLvl_1_head_6\nbody_11", "LI_3", "LBody_10\nLBody_11\nLBody_12\nLBody_13", "Maiden, NC\nNewark, CA\nPrineville, OR\nReno, NV", "26,835\n0_4\n18\n0_5", "0_6\n0_7\n18_0\n0_8", "92,306\n38,278\n10,392\n7344", "0_9\n0_10\n0_11\n0_12", "Maiden, NC_0\nNewark, CA_0\nPrineville, OR_0\nReno, NV_0", "24,530\n0_20\n13\n0_21", "123\n0_22\n13_0\n0_23", "99,907\n26,519\n39,507\n20,653", "0_24\n0_25\n0_26\n0_27", "Maiden, North Carolina\nNewark, California\nViborg, Denmark\nOur colocated facilities ", "Table_data_appB\nTable_data_appB_0\nTable_data_appB_1\nTable_data_appB_2", "Table_data_appB_3\nTable_data_appB_4\nTable_data_appB_5\nTable_data_appB_6", "Table_data_appB_11\nTable_data_appB_12\nTable_data_appB_13\nTable_data_appB_14", "Table_data_appB_18\nTable_data_appB_19\nTable_data_appB_20\nTable_data_appB_21", "Table_data_appB_22\nTable_data_appB_23\nTable_data_appB_24\nTable_data_appB_25", "Table_data_appB_26\nTable_data_appB_27\nTable_data_appB_28\nTable_data_appB_29", "Table_data_appB_32\nTable_data_appB_33\nTable_data_appB_34\nTable_data_appB_35", "Table_data_appB_39\nTable_data_appB_40\nTable_data_appB_41\nTable_data_appB_42", "Table_data_appB_43\nTable_data_appB_44\nTable_data_appB_45\nTable_data_appB_46", "Table_data_appB_47\nTable_data_appB_48\nTable_data_appB_49\nTable_data_appB_50", "Table_data_appB_53\nTable_data_appB_54\nTable_data_appB_55\nTable_data_appB_56", "Table_data_appB_60\nTable_data_appB_61\nTable_data_appB_62\nTable_data_appB_63", "Table_data_appB_64\nTable_data_appB_65\nTable_data_appB_66\nTable_data_appB_67", "Table_data_appB_68\nTable_data_appB_69\nTable_data_appB_70\nTable_data_appB_71", "Table_data_appB_74\nTable_data_appB_75\nTable_data_appB_76\nTable_data_appB_77", "Table_data_semibold_39\nTable_light_grey_\nTable_light_grey__0\nTable_data_semibold_40", "Table_data_semibold_41\nTable_light_grey__1\nTable_light_grey__2\nTable_data_semibold_42", "Table_data_semibold_43\nTable_light_grey__3\nTable_light_grey__4\nTable_data_semibold_44", "Table_data_semibold_45\nTable_light_grey__5\nTable_light_grey__6\nTable_data_semibold_46", "Table_data_semibold_47\nTable_data_semibold_48\nTable_data_semibold_49\nTable_data_semibold_50", " Introduction and objectives of work \nScope of Work \nMethodology \nOur Findings", "Parameter\nQuantity\nUnits\nBoundary/ Protocol", "8.5\nMillion \nTherms\nWorldwideoccupied properties/ Apple Internal Protocol", " in \n5947\nMetric tonnes\nWorldwide occupied properties / Apple Internal Protocol_0", "Manufacturing \nTransportation \nProduct Use \nRecycling ", "[metric tons CO2e] \n[metric tons CO2e] _0\n[metric tons CO2e] _1\n[metric tons CO2e] _2", "Fraunhofer IZM reviewed Apple’s company fiber footprint data related to the products manufactured and sold by Apple Inc. in fiscal year 2015. \nThis review checks transparency of data and calculations, appropriateness of supporting product and packaging related data and assumptions, and overall plausibility of the calculated corporate annual fiber footprint of Apple products shipped in fiscal year 2015. As there is no standardised method available for calculating a product or company fiber footprint Apple defined a methodology for internal use. The scope of the Fiber Footprint includes Apple’s corporate fiber usage from products. Facility fiber usage is explicitly excluded. The fiber footprint tracks the total amount of wood fiber, both virgin and recycled, that Apple uses in packaging, and other paper products. Apple obtains and analyses supplier-specific data for each product line and sums up these figures for the entire company using sell-in numbers. The output is a total fiber footprint. The review of the corporate annual fiber footprint has considered the following criteria: The system boundaries are clearly defined Assumptions and estimations made are appropriate Use of supplier data is appropriate and methodologies used are adequately disclosed Data reported by Apple is as follows: \nAll results and figures reviewed for fiscal year 2015 are plausible. \nAs part of this review Apple disclosed following data to Fraunhofer IZM: Calculation methodology for the company fiber footprint Sales data for FY2015, including accessories Product and supplier specific data on packaging design (including CAD design drawings), materials (distinction of paper qualities, fiber content, including recycled fiber content), weights and production yields (process yields and cut-off losses) Aggregated fiber data for all products and the total company fiber footprint for the fiscal year 2015 The revised methodology paper provided by Apple (Fiber Footprint at Apple - Methodology Description - V1.0) on March 15, 2016, is considered a sound and appropriate guidance for determining the company fiber footprint. Where appropriate, this approach follows methodological principles applied for state-of-the-art Life Cycle Assessments. This review comprises a check of fiber data for selected products, which are most influential to the overall company fiber footprint and which represent the full spectrum of Apple products. The selection of products for individual reviews has been agreed between Apple and Fraunhofer IZM. Plausibility of some supplier data has been questioned and discussed in detail with Apple. Based on direct supplier feedback related fiber data has been corrected. This review was done remotely. All questions raised in the course of the review were answered by Apple and related evidence was provided where needed. Based on the process and procedures conducted, there is no evidence that the corporate fiber footprint is not materially correct and is not a fair representation of fiber data and information. The excellent analysis meets the principles of good scientific practice. Berlin, March 29, 2016 - Karsten Schischke - - Marina Proske - Fraunhofer IZM Fraunhofer IZM Dept. Environmental and Dept. Environmental and Reliability Engineering Reliability Engineering ", "2015 \n132,741\n51,669\n81,072 ", "2015_0\n2014\n2013\n2012", " 28,100 \n 28,490 \n 29,300 \n 21,220 ", " 19,3601\n 20,710 \n 22,090 \n 14,300 ", " 8740 \n 7780 \n 7210 \n 6920 ", " 42,460 \n 63,210 \n 91,510 \n 139,160 ", " 312,910 \n 259,130 \n 225,630 \n 202,060 ", " 139,9402 \n 110,940 \n 90,948 \n 85,090 ", " 172,970 \n 148,190 \n 134,685 \n 116,970 ", " 996 \n 839 \n 708 \n6083", " 851,660 \n 922,860 \n 764,550 \n 304,000 ", " 794,830 \n840,490\n676,630\n240,230", " 56,830 \n82,370\n87,920\n63,770", " 6,711,510 \n 4,470,180 \n 14,405,580 \n 7,653,190 ", " 72,410 \n 34,420 \n 193,480 \n 379,350 ", " 93 \n 87 \n 73 \n 60 ", "916\n703\n522\n294", "362,410\n 282,990 \n 213,770 \n 118,090 ", "573\n494 \n430 \n345 ", "166\n 113 \n 69 \n 57 ", "111\n 103 \n 94 \n 71 ", "296_1\n 278 \n 267 \n 217 ", " 13,110,880 \n 6,833,000 \n 5,923,810 \n 4,850,160 ", " 19,599,570 \n 14,621,940 \n 15,866,650 \n 11,464,020 ", " 1,002,300 \n 508,040 \n 70,550 \n 123,460 ", "63\n68\n73\n70", "Default Utility Emissions*_0\nApple Emissions (incl. Renewable Energy)\nDefault Utility Emissions*_1\nApple Emissions (incl. Renewable Energy)", "14,42511,00755645564804——1449\n12,656923855645564804——1449\n82,18339,428793010,13921414598324328014,424\n59,51639,4280021410324328014,424", "000\n000_0\n51,65122,66328,988\n28,988028,988", "26007461854\n26007461854_0\n65,769——\n65,769——_0", "17,025\n15,256\n199,603\n154,273", "13,16010,9495605923771532—609\n11,34391325605923771532—609\n84,61139,457695210,635426548014946104912,505\n48,21525,45000426504946104912,505", "14614600\n14614600_0\n87,73252,97733,4921263\n7664076640", "28127872025\n28127872025_0\n83,285——\n83,285——_0", "16,118\n14,301\n255,628\n139,164", "15,21112,2315098333774350390868\n13,72710,7475098333774350390868\n85,35443,116440012,16224635320582674904578\n17,50300000582674904187", "19,36019,360 000\n22012201000\n123,85575,83636,95999651095\n00000", "615835482610\n615835482610_0\n77,42544,60632,819\n74,00244,60629,397", "40,729\n22,086\n286,634\n91,505", "Total Gas(mmBTU)\nRenewable Biogas(mmBTU)\nTotal Electricity(million kWh)\nRenewable Electricity(million kWh)", "318,842\n29,027\n348\n315", "278,092\n29,027_0\n217\n217_0", "6928\n0_29\n13_1\n13_2", "4385\n0_30\n40\n40_0", "2290 \n0_31\n7\n7_0", "16,771\n0_32\n14\n14_0", "0_33\n0_34\n12\n5", "2197\n0_35\n11\n8", "8179\n0_36\n34\n11_0", "461,388\n461,145\n455_0\n455_1", "461,145_0\n461,145_1\n218\n218_0", "0_37\n0_38\n137\n137_0", "243\n0_39\n54\n54_0", "0_40\n0_41\n46\n46_0", "71,43741,75029,687\n000_1\n1949995\n1469947", "851,667\n490,171\n997\n916_0", "LBody\nLBody_0\nLBody_1", "LBody_2\nLBody_3\nLBody_4", "Renewable Energy Generation. Where feasible, we produce our own renewable energy by building our own solar arrays, biogas fuel cells, and micro-hydro generation systems.\nRenewable Energy Investments. Where it’s not feasible to produce our own, we \npurchase renewable energy, investing in local and newer projects that follow our robust renewable energy sourcing principles. \nGrid-Purchased Renewable Energy. In cases where we aren’t able to purchase renewable energy in this way due to local regulations, Apple purchases renewable energy credits (RECs). We apply the same rigor here as for our other grid-purchased renewables, and we also register and retire these RECs in certified tracking systems. When Apple acquires RECs, we require that they are Green-e Energy certified and come from the same region—and preferably the same state—as the Apple facility they support.", "Our renewable energy sourcing principles. \nYour grid is our grid.\nWhen it is not feasible to power our facilities with onsite renewable energy, we match our load with renewable energy generated by either Apple-owned projects or third-party projects. We put the clean energy we generate onto the local grid, displacing the more polluting forms of energy.", "Green_Head_Above_Lvl_3\nStory_17", "Amount of material recovered for reuse through \ntake-back initiatives in 2015\n_H2__0\ntext_11", "We have targeted water-conservation efforts at our corporate facilities, especially in Cupertino and surrounding Santa Clara Valley, California, where our headquarters are located—an area experiencing significant drought. We are installing high-definition flow sensors and sub-meters in our landscaping to better understand and reduce our irrigation needs. In 2015, we converted approximately 120,000 square feet of previously grass lawns to drought-tolerant landscape, translating to estimated water savings of up to 6 million gallons per year—enough water to fill nine Olympic-size swimming pools. We also planted throughout Apple’s headquarters over 167,000 California native plants, which are adapted to the local climate and require less water. To tackle water use in research and development facilities, we are beginning to retrofit laboratory equipment to recycle process water, already saving approximately 2.25 million gallons annually from two sites alone. As a result of these conservation efforts, our corporate water use per employee declined by 25 percent since fiscal year 2013. \nAt our existing and planned data centers, we will be expanding our efforts to use \nnon–water-intensive cooling technology, recycle water where we can, and reduce withdrawals from the local watersheds. Our Maiden, North Carolina, data center employs \nan innovative cooling system that reuses water 35 times, resulting in a 20 percent reduction in overall water consumption at the data center. We are also building our newer data centers in locations that can rely heavily on outdoor air for cooling. \nThe impact of water usage varies greatly depending on the watershed conditions where the resource is being used. So we’ve continued to look at more sophisticated ways to measure and analyze our water use. The profile of water use at our data \ncenters, corporate offices, manufacturing sites, and retail stores differs significantly depending on the climate and nature of activities. We have begun to map those \noperations against indicators of water risk, which include water scarcity, business risk, and habitat and livelihood impact to the basins in which we operate. This analysis \nwill help prioritize our conservation efforts across our operations. ", "Story_21\ntext_12", "Using paper more efficiently.\nSourcing virgin paper responsibly.\nProtecting sustainable forests.", "At Apple, we believe that innovation can happen anywhere and great ideas can \ncome from anyone. That’s why we engage with diverse stakeholders. Regular dialogue with NGOs, university researchers, industry experts, investors, policy makers, and our customers provides us with a different lens through which to view our work. \nWe engage to develop a better understanding of emerging issues, to gain additional expertise in key areas, and to identify potential partnerships for future projects. Through these formal and informal conversations, we can gather feedback that shapes our thinking and planning.\nWe approach stakeholder engagements strategically, working with organizations and associations to generate meaningful information exchanges. Some updates from fiscal year 2015 include:", "Facilities Environmental Key Performance Indicators (Page 29)\nScopes 1 amp; 2 Building Carbon Emissions (Pages 30–31)\nFiscal Year 2015 Natural Gas and Electricity Use (Page 32)", "TR_3", "TH_3\nTH_4", "TR_5", "TH_5\nTH_6", "TR_7", "TH_7\nTH_8", "TR_9", "TH_9\nTH_10", "Facilities energy, carbon, waste, and water data (Pages 38–40)\n(Bureau Veritas)\nProduct life cycle carbon footprint (Pages 41–44)\n(Fraunhofer Institute)\nPaper footprint (Pages 45–46)\n(Fraunhofer Institute)", "990\nMillion kilowatt hours (mkWh)\nWorldwideoccupied properties/ Apple Internal Protocol_0", "914\nMillion kilowatt hours (mkWh)_0\nWorldwide / Invoiced quantitiesamp; self-generated", "28,103\nmetric tons of carbon dioxide equivalent (tCO2e)\nWorldwide occupied properties /WRI/WBCSD GHG Protocol", "376,365\ntCO2e\nWorldwide occupied properties /WRI/WBCSD GHG Protocol_0", "43,608\ntCO2e_0\nWorldwide occupied properties /WRI/WBCSD GHG Protocol_1", "139,936\ntCO2e_1\nWorldwide occupied properties / WRI/WBCSD GHG Protocol Value Chain (Scope 3)", "172,968\ntCO2e_2\nWorldwide occupied properties / WRI/WBCSD GHG Protocol Value Chain (Scope 3)_0", "2,000,000\ncubic meters (m3)\nWorldwide occupied properties / Apple Internal Protocol", "455\nMetric tonnes_0\nWorldwide occupied properties / Apple Internal Protocol_1", "10,221\nMetric tonnes_1\nWorldwide occupied properties / Apple Internal Protocol_2", "Our Conclusion \nStatement of independence, impartiality and competence \n1 Summary ", "2 Reviewed Data and Plausibility Check \n3 Findings \n 4 Conclusions ", "Total Fiber \nVirgin Fiber \nRecycled Fiber ", "[metric tons fiber] \n[metric tons fiber] _0\n[metric tons fiber] _1", "Registered Sites: \nApple Inc. \nApple Inc. ", "Certificate Number: \nCERT-0095035 \nCERT-0095035 _0", "File Number: \n1677254 \n1677253 ", "Issue Date: \nMarch 11, 2016 \nMarch 11, 2016 _0", "Original Certification Date: Current Certification Date: Certificate Expiry Date: \nMarch 11, 2016 March 11, 2016 September 28, 2017 \nMarch 11, 2016 March 11, 2016 September 28, 2017 _0", "LI_4", "LBody_19\nLBody_20\nLBody_21", "KPI\nUnit\nFiscal Year", "Greenhouse Gas Emissions\nScope 1 (effective)\nmetric tons CO2e", "Energy Use_0\nElectricity\nmillion kWh", " 831 \n 7024 \n590", " 166 \n 137 \n118", "Energy Efficiency\nAdditional annual savings due to implemented energy efficiency measures since 2011\nkWh/year", "Water Use\nTotal\nmillion gallons", "Waste Generation\nLandfilled\npounds", "Location_0\nScope 1_0\nScope 2_0", "Location_1\nNatural Gas_0\nElectricity_0", "main_title_cover", "Environmental Responsibility Report\n2016 Progress Report, Covering Fiscal Year 2015", "Story_2\ntext", "Climate change is real. So is what we’re doing about it.\nIn 2015, 93 percent of our energy came from renewable sources. And we’re constantly looking for ways to get to 100 percent. In Singapore, we’re powering our facilities \nwith a 32-megawatt solar project spread over more than 800 rooftops. In China, we’re adding 170 megawatts of solar to begin offsetting the energy used to make our \nproducts. And our data centers around the world run on 100 percent clean energy \nand power billions of iMessages, answers from Siri, and song downloads from iTunes.", "When we measure our carbon footprint, we include hundreds of suppliers, millions of customers, and hundreds of millions of devices. And we’re always looking for ways to make the biggest difference in five major areas: manufacturing, product use, facilities, transportation, and recycling.\nWe design each generation of our products to be as energy efficient as possible. \nWe’re sourcing lower-carbon materials to make our devices, and we’re partnering \nwith suppliers to add clean energy to their facilities. We produce and procure clean, renewable energy to power 93 percent of our offices, retail stores, and data centers around the world, which has lowered emissions from our facilities to 1 percent of \nour comprehensive carbon footprint. We’re also adjusting our recycling practices \nand rethinking our shipping strategies.", "We’ve made energy efficiency a priority across all of our facilities, seeing energy \nsavings of 25 percent or more in the buildings assessed. We have completed extensive energy efficiency projects at our corporate headquarters in Cupertino, California, and the surrounding Santa Clara Valley, where we operate more than 100 buildings, some of which we’ve called home for more than 20 years. As buildings age, and as our \nworking needs have changed, we’ve undertaken aggressive programs to improve the comfort and function of our facilities, all the while ensuring they require less energy.\nImprovements made during the past five years now save over 39 million kilowatt-hours a year—equivalent to the output of a typical 20-megawatt solar photovoltaic (PV) array. The efficiency improvements include upgrading to LED lighting, retro-commissioning building controls, and upgrading heating, ventilation, and air-conditioning systems. When designing new buildings, we optimize energy efficiency through use of high-efficiency lighting and heating, ventilation, and air-conditioning systems and through careful selection of windows, insulation, shading, and roofing materials to reduce \nheating and air-conditioning loads.", "8000The site will be populated by over 8000 trees, including more than 7000 newly planted shade and fruit trees.\n100%Apple Campus 2 will be powered by 100 percent renewable energy.", "Transportation\nRecycling", "Lvl_1_head_5\nbody_9", "Every molecule of water we use matters.\nConserving water where it matters most.", "Supplier Clean Water Program \nSupplier Clean Energy Program", "Green_Head_Above_Lvl_7", "We mapped our water use to different levels of water risk (as defined by WRI’s Aqueduct tool) across the world to understand where we should be focusing our conservation efforts. Water risk takes into consideration water availability, water quality, and regulatory risks at a localized level.\nSource: World Resources Institute (WRI) Aqueduct, www.wri.org/our-work/project/aqueduct", "We’re not just protecting forests. \nWe’re protecting generations of them.\nA durable device is a greener device.", "All our suppliers must adhere to our Apple Regulated Substances Specification.Learn more gt;\nOur Environmental Testing Lab in Cupertino, California, enables us to test products for compliance with our Regulated Substances Specification.", "Link_3\ntext_19", "Link_4\ntext_20", "Link_5\ntext_21", "Link_6\ntext_22", "Story_28", "body_18\nLvl_1_head_12", "Table_subhead\nTable_subhead_0", "Domestic (U.S.)\nInternational", "2812\n2543", "2812_0\n2543_0", "45,041\n37,729", "11,036\n30,662", "Domestic (U.S.)_0\nInternational_0", "2269\n1531", "2269_0\n1531_0", "42,543\n43,527", "0_28\n22,893_0", "Fiscal Year 2015 Natural Gas and Electricity Use\nThe chart below provides a detailed breakdown of fiscal year 2015 energy use, which is used to calculate our carbon emissions.", "Table_Subhead_AppB\nTable_subhead_6", "Table_data_appB_7\nTable_data_appB_8", "Table_data_appB_9\nTable_data_appB_10", "Table_data_appB_15\nTable_data_appB_16", "Table_Subhead_AppB_0\nTable_subhead_7", "Table_data_appB_30\nTable_data_appB_31", "Table_data_appB_36\nTable_data_appB_37", "Table_Subhead_AppB_1\nTable_subhead_8", "Table_data_appB_51\nTable_data_appB_52", "Table_data_appB_57\nTable_data_appB_58", "Table_Subhead_AppB_2\nTable_subhead_9", "Table_data_appB_72\nTable_data_appB_73", "Table_data_appB_78\nTable_data_appB_79", "TR_11", "TH_11", "Table_subhead_10\nTable_subhead_11", "1Summary \n2Reviewed Data and Findings ", "Mission Statement\nGuiding Principles", "section_heads_left_a_3\nLvl_1_head_18", "1326 Kifer Road Sunnyvale, California 94086 USA \n1 Infinite Loop Cupertino, California USA ", "Natural gas_0\nmillion btu", "Renewable Energy_0\nRenewable energy sourcing5", "Renewable energy sourced \nmillion kWh_0", "Emissions avoided as a result of renewable energy sourcing\nmetric tons CO2e_0", " 3,006,1706 \n—6", "58%\n92%", "main_title_subs", "We designed a line of robots that can take apart up to 1.2 million phones a year. We call it Liam.", "Facilities Environmental Key Performance Indicators", "Scopes 1 amp; 2 Building Carbon Emissions", "FY2015 Natural Gas and Electricity Use", "Facilities energy, carbon, waste, and water data ", "Product life cycle carbon footprint", "Paper footprint", "We’re working to protect or create up to a million acres of responsibly managed forest.Our work is led by Lisa Jackson, Apple’s Vice President of Environment, Policy and Social Initiatives, reporting directly to CEO Tim Cook. The Office of Environment, Policy and Social Initiatives works with teams across Apple to set strategy, engage stakeholders, and com-municate progress. Our integrated approach means that decisions about Apple values, including environment, are reviewed and sup-ported at the highest levels of the company. ", "Environmental\nResponsibility at Apple\n", "Climate ChangeThe Singapore solar project is the first distributed utility-scale installation in the country and is spread over hundreds of rooftops.", "Carbon Footprint", "A more complex carbon footprint requires more inventive solutions.", "CO2e Emissions per Product (kg)We’ve decreased carbon emissions per product every year since 2011.", "MacBook Air consumes 52 percent less energy than the original model. Mac mini consumes 40 percent less power when idle than the previous generation. Apple TV consumes 90 percent less energy than the first generation. And you can charge your iPhone 6s once a day for a year for only 53 cents.3 In fact, since 2008 we’ve reduced the average total power consumed by Apple products by 64 percent, bringing down our overall carbon footprint and your electricity bill at the same time.4\n", "Our data centers run on 100 percent renewable energy. Which means every time you send an iMessage, download a song from iTunes, or ask Siri a question, the energy Apple uses doesn’t contribute to climate change.", "We’re constantly finding ways to be more energy efficient and working toward our goal of covering 100 percent of the electricity use of our global facilities—data centers, corporate offices, and more than 475 Apple Retail Stores—with 100 percent renewable energy. As of January 2016, we’re at 93 percent worldwide. And in 23 countries, including the United States, the United Kingdom, China, and Australia, we’re at 100 percent. For example, we connected 40 megawatts of new solar energy to China’s national grid, producing more than enough electricity for all of Apple’s offices and retail stores in China. Apple is one of the largest end-users of solar power in the world. As of March 2016, we have announced 521 megawatts of solar projects—the majority of these projects are Apple-owned, with 162 megawatts undertaken as part of Power Purchase Agreements.\n", "\t *Building emissions refers to emissions from natural gas and electricity at corporate offices, data centers, and retail stores. ** In fiscal year 2014, Apple owned a facility in Mesa, AZ, that was operated by a supplier, which had default grid emissions of 151,279 tons CO2e and effective emissions of 0 tons CO2e due to the use of 100 percent renewable energy. It was removed from operation in fiscal year 2015 and is not shown on this chart.", "Apple Scopes 1 amp; 2 Building Emissions*", "iPhone 6iPhone 6sThe carbon footprint of iPhone 6s aluminum enclosure is half that of the previous generation.", "We sell millions and millions of phones. So making even small adjustments to the \nproduction of iPhone can have a big impact. We discovered that changing how \nwe make the aluminum enclosure could lower our carbon footprint. We prioritized \naluminum that was smelted using hydroelectricity rather than fossil fuels. And we reengineered our manufacturing process to reincorporate the scrap aluminum. As \na result, we cut the carbon footprint associated with the aluminum enclosure of iPhone 6s in half compared with the previous generation. And we’re looking for new ways to use more carbon-efficient aluminum across all of our products.\n", "The cleanest energy is the energy you \nnever use.", "Our Maiden, North Carolina data center is powered by our biogas fuel cells and three solar arrays.", "Our data centers have been 100 percent renewable since 2013. And we’re continuing \nto find innovative ways to bring renewable energy projects to the places where we \nconsume a lot of energy. For example, we recently partnered with the local utility, \nDuke Energy, to develop a green energy tariff—Duke Energy’s Green Source Rider Program. This program allowed us to co-develop five solar PV projects in North Carolina, the first of which came online in October 2015. For more information about Apple’s \nindustry-leading efforts to supply our data centers with 100 percent renewable energy, see Appendix B.\n", "Our Mall of the Emirates store in Dubai was designed with environmental features that earned the building LEED Platinum certification from the U.S. Green Building Council.", "We are also changing how we design our stores to be better for the planet. For example, our latest store design is 40 percent more energy efficient and uses 30 percent less water than our previous design. We’re also bringing the outside in, through mixed-mode natural ventilation and biophilic design, where available and appropriate. In late 2015, our Mall of the Emirates store in Dubai received LEED Platinum certification. ", "Getting to and from the new campus will be greener, too. We’re expanding our commute alternatives program by 20 percent. This means that over a third of our employees in the area can commute to our existing and new campuses using our biofuel buses, public transit, bicycles, carpools, and their own two feet. And for drivers, we’ll have over 1000 electric vehicle charging stations. When completed, Apple Campus 2 will be an ever-present reminder of our commitment to sustainability and an example of what every corporate campus can be.", "Travel Emissions", "As we shrink the carbon footprint of Apple’s facilities, we’re also continuing to \nlook for ways to reduce carbon emissions from business fleet vehicles, employee \ncommute, and business travel. Those emissions grew in fiscal year 2015 primarily because our employee count increased by 14 percent in the same period, and \nbecause long-distance business travel increased. We offer our United States \nemployees a transit subsidy of up to US$100 per month, and at our Cupertino \nand surrounding Santa Clara Valley campus, we offer free coach buses to commute \nto and from our corporate offices. In fiscal year 2015, use of these coach buses increased by close to 19 percent. And we’re seeing the difference this is making: In \nfiscal year 2015, our emissions per employee dropped for the fourth year in a row; \nthey have decreased by close to 30 percent since fiscal year 2012. And to encourage electric vehicle use, we also offer our employees over 550 electric vehicle charging ports, at no cost—an increase of 67 percent compared to last year—and we continue to add more to meet increased demand.\n", "We’re participating in the U.S. Environmental Protection Agency’s SmartWay Program to find more ways to improve fuel efficiency and reduce greenhouse gases and air pollu-tion from the transportation supply chain.", "We are also looking at ways beyond just shipping to reduce our product transportation impacts—like our boxes. We’re reviewing our box sizing, material selection, recycled content, and even our packing slips, to see where we can be more material efficient. We use distribution centers across the world to act as transportation hubs for our products. While we don’t own these facilities, we believe they should have as small a footprint as possible. So we’re collecting data on their energy use, carbon emissions, waste generation, and waste diversion from landfill, to identify where there may be opportunities \nfor improvement.\n", "In February 2016, we issued a US$1.5 billion green bond, the first ever by a U.S. tech company. The green bond proceeds are dedicated to financing environmental projects—because environmental responsibility is core to our business.1.5billion", "We are working every day to leave the world better than we found it. We know we have a long way to go, and a lot of work ahead of us. We are committed to increasing openness in our work and welcome you to join us on our journey. \n", "Reduce our impact on climate change by using renewable energy sources and driving energy efficiency in our products and facilities. ", "Conserve precious resources so we all can thrive. ", "Pioneer the use of safer materials in our products and processes. ", "This report details how we are approaching each of these priorities, and highlights some of our key accomplishments to date. ", "section_heads_center_0", "Our renewable energy strategy", "1. Energy Efficiency", "An important first step in managing energy use is to ensure our facilities use as little as possible. That’s why we design them for maximum energy efficiency, and regularly audit their energy use to identify further opportunities for energy optimization.", "2. Renewable Energy", "Wind", "Water", "Biogas Fuel Cell", "Geothermal", "Solar", "Resources Liam is a line of robots that disassembles iPhone 6 into individual components, making it easier to recover finite resources such as aluminum, gold, and cobalt.", "Resources", "We can’t manufacture natural resources. So we invent ways to make the most of them.", "We want to make sure we’re protecting and creating more sustainable forest than we’re using. It’s part of our larger goal to minimize the materials we take from the earth. We’re measuring our water footprint and finding ways to reduce or reuse water wherever we can. And none of the waste from any of our iPhone and Apple Watch final assembly sites ends up in a landfill.5 We also created Apple Renew—a program that lets you recycle any Apple device at an Apple Store.", "Reuse amp; Recycling", "One of the best ways to use a resource is to reuse it.", "We work hard to keep electronic devices out of landfills so that the precious resources they contain can be reused. And we want to ensure that these devices are recycled properly so they don’t pose a threat to human health or the environment. That’s why we’ve developed recycling collection events, take-back initiatives, and efforts like Apple Renew, a global program that lets you bring used Apple devices to any Apple Store for reuse or responsible recycling. We’re also working with over 160 recyclers around the world, whose facilities we hold to rigorous standards of environmental compliance, health and safety, and social responsibility. Through our efforts, we’ve kept more than 597 million pounds of equipment out of landfills since 1994. In 2015, we collected nearly 90 million pounds of e-waste through our recycling programs. That’s 71 percent of the total weight of the products we sold seven years earlier.", "Apple RenewRecycle your Apple device at any Apple Store or request a prepaid shipping label online and send it to us. Learn more gt;", "Landfill Diversion Rate for Office Waste", "Waste, recycling, and compost data is collected or estimated for all Apple facilities, including Apple Retail Stores.100%90%80%70%60%50%40%30%20%10%0%2012201320142015", "At our corporate offices and retail stores, wherever possible we’ve created robust \nrecycling and composting programs to minimize the environmental impact of the waste we produce. In fiscal year 2015, we generated approximately 13.1 million pounds of waste, and diverted over 22.5 million pounds of materials from landfill through \nrecycling and composting. Our rate of landfill diversion was 63 percent, compared \nwith 68 percent in fiscal year 2014. We are working to improve our landfill diversion rate through a variety of actions, including expanding composting at our corporate \ncampuses, and initiating zero waste at our more than 470 retail stores. \n", "Corporate Water Use per Employee", "Facilities Water Use\n", "FY2015 Water Use by Risk Level", "All our suppliers must adhere to our Apple Sustainable Fiber Specification.Learn more gt; ", "Forests provide wood fiber for the paper we use in our packaging. They also clean our air, purify our water, and shelter our wildlife. So we work hard to minimize our impact by sourcing paper responsibly and using it as efficiently as possible. But that’s not enough. The world’s forests still face widespread destruction due to illegal logging, \npoor management, and aggressive land development. That’s why we’re determined to protect and create enough responsibly managed forests around the world to cover all our packaging needs and produce fiber for generations.7\n", "FY2015 Fiber Footprint133,000 metric tons61%RecycledFiber39%Sustainably SourcedVirgin Fiberlt;1%Other*Due to rounding, total does not add up to 100.Our 2015 footprint captures all paper used to package and ship products, as well as all in-box papers and paper retail bags that we used for Apple Watch. It also accounts for fiber losses during the paper production process.Note: Due to rounding, total of percentages doesn’t add up to 100. U.S. retail packaging of iPhone 6s is 20 percent lighter and consumes 34 percent less volume than the first-generation iPhone packaging. Retail packaging for iPad Pro uses a minimum of 38 percent post-consumer recycled content.The 21.5-inch iMac retail packaging consumes 53 percent less volume and weighs 35 percent less than the original 15-inch iMac packaging.", "We remain committed to protecting—and creating—as much sustainable working \nforest as is needed to produce the paper in our product packaging.7 And we expect that our latest effort in China with World Wildlife Fund, our most ambitious yet, will \nget us significantly closer. \n", "To ensure that it can stand up to repeated use, the MacBook keyboard is tested with millions of clicks.", "When products can be used longer, fewer resources need to be extracted from the \nearth to make new ones. So we assess all our products in our Reliability Testing Lab, using custom, comprehensive measures. And we release regular software updates \nthat keep our products current and reduce how often they need to be replaced. \n", "Product Design", "section_heads_center_1", "Safer Materials", "Safer Materials", "After we identify toxins in our products, we reduce them, remove them, or develop new materials that are safer. These efforts also remove toxins from our manufacturing and recycling processes, which protects workers and keeps pollutants out of the land, air, and water.\n", "The standards we set for our suppliers go far beyond what’s required by law. Our toxicologists rigorously analyze the safety of materials our suppliers use by looking at data from our own Environmental Testing Lab. The lab runs tests such as inductively coupled plasma mass spectrometry, X-ray fluorescence spectroscopy, laser-induced breakdown spectroscopy, and ion or gas chromatography. If we find an issue, we \nwork with the supplier to correct it. Since creating our Cupertino Environmental Testing Lab in 2006, we’ve grown it to 20 times its original size, and have regularly updated it with state-of-the-art equipment. We’ve also been building out testing labs at our manufacturing facilities in China to test and validate products throughout the manufacturing process.\n", "section_heads_center_2", "We’re better together.", "Link", "Ellen MacArthur Foundation CE100", "Link_0", "Corporate Eco Forum", "Link_1", "World Business Council for Sustainable Development", "Link_2", "Advanced Energy Economy", "Memberships, such as:\n", " Paulson Institute’s CEO Council for Sustainable Urbanization", "Our CEO, Tim Cook, sits on the\n", "We formed our own Green Chemistry Advisory Board, made up of some of the world’s leading toxicologists, researchers, and academics, to help us identify innovative ways to minimize or eliminate toxins from our supply chain.", "Ceres Company Network", "We’re part of the \n", "The Conservation Fund", "Through our work with \n", "World Wildlife Fund", "Our project with \n", "Appendix A", "Apple’s Operations: Environmental Data", "Facilities Environmental Key Performance Indicators ", "The following table provides an overview of environmental key performance indicators relating to Apple’s facilities—our data centers, corporate offices that house nearly 55,000 employees, and more than 475 Apple Retail Stores around the world.\t", "Story_29", "Notes: \tApple’s fiscal year begins approximately October 1 each year.\tNumbers are rounded.\t1In fiscal year 2015, we adjusted our methodology to better reflect locations where natural gas is used. We estimate natural gas usage in offices and retail stores where we are not billed based on usage (e.g., leased office space or retail stores within malls). This more accurate methodology resulted in a decrease in emissions in fiscal year 2015.\t\t2In fiscal year 2015, we adjusted our methodology to reflect actual travel instead of booked travel. Using this more accurate methodology revealed overestimates for previous years.\t3Only total electricity usage data was available for fiscal year 2012.\t4Not included in this figure is a facility in Mesa, Arizona, which Apple owned in fiscal year 2014, but was operated by a supplier. It generated 282 million kilowatt-hours of electricity— 100 percent of which was covered by our renewable energy program. The facility was removed from operation in fiscal year 2015.\t5We calculate our progress toward 100 percent renewable energy on a calendar year basis. In calendar year 2015, we used 1048 million kilowatt-hours electricity and 977 million kilowatt-hours in renewable electricity.\t6Prior to fiscal year 2015, composted quantities were reported as part of the “recycled” figure.", "Scopes 1 amp; 2 Building Carbon Emissions\n(metric tons CO2e)", "Table_head_2", "Fiscal Year 2014", "Scope 1", "Scope 2", "Location", "Default Utility Emissions*", "Apple Emissions ", "Default Utility Emissions*", "Apple Emissions _0", "Corporate", "16,716", "15,335", "86,842", "21,555", "Data centers", "26,854", "18", "148,320", "0", "Retail stores", "5355", "5355", "82,770", "41,658", "Totals", "48,924", "20,708", "317,932", "63,213", "TR_1", "TH_2", "Table_head_2_0", "Fiscal Year 2015", "Corporate", "16,960", "15,423", "106,134", "19,564", "Data centers", "24,543", "136", "186,586", "0", "Retail stores", "3800", "3800", "86,070", "22,893", "Totals", "45,303", "19,359", "378,790", "42,457", "Lvl_1_head_14", "Story_32", "Note: \tApple uses third-party colocation facilities for additional data center capacity. In fiscal year 2015, these facilities used 143 million kilowatt-hours of electricity, of which 85 percent was covered by renewable energy (see Appendix B for additional energy and emissions information).", "Appendix B ", "Data Center Energy Supplement", "www.eia.gov/electricity/sales_revenue_price/pdf/table5_a.pdf", "*Carbon emissions equivalences calculated using U.S. Energy Information Administration, 2013 data: \n\n", "Table_Head_App_B", "Newark, California—100% renewable since January 2013", "Pacific Gas amp; Electric Default Grid Mix", "Apple Actual Renewable Energy Use", "Natural Gas", "24%", "Bundled Grid (mostly wind)", "63%", "Nuclear", "21%", "Grid (mostly wind)", "37%", "Other/Unspecified", "21%", "Renewable", "34%", "2015 Default Emissions\n(mtons CO2e/year", "26,519", "2015 Effective Emissions\n(mtons CO2e/year", "0", "www.energy.ca.gov/sb1305/labels/2014_labels/\nall_labels/Pacific_Gas_and_Electric_(PGandE).pdf", "Actual fiscal year 2015 energy data", "Table_data_appB_17", "Resource Advisor generated utility emissions values (utility-specific data).", "Table_Head_App_B_0", "Prineville, Oregon—100% renewable since opening May 2012", "Pacific Power Default Grid Mix", "Apple Actual Renewable Energy Use", "Coal", "61%", "Oregon Wind", "89%", "Natual Gas", "13%", "Utility Green", "1%", "Other", "11%", "Apple’s Micro-Hydro Projects", "10%", "Renewable", "15%", "2015 Default Emissions\n(mtons CO2e/year", "39,507", "2015 Effective Emissions\n(mtons CO2e/year", "0", "www.pacificpower.net/about/rr/ori.html \nfrom PowerContent—Large Non Residential", "Actual fiscal year 2015 energy data", "Table_data_appB_38", "Resource Advisor generated utility emissions values (utility-specific data).", "Table_Head_App_B_1", "Reno, Nevada—100% renewable since opening December 2012", "NV Energy - North Default Grid Mix", "Apple Actual Renewable Energy Use", "Natural Gas", "53%", "Apple’s Solar PV Projects", "29%", "Coal", "27%", "Other Solar PV", "51%", "Other", "lt;1%", "Local Geothermal", "20%", "Renewable", "20%", "2015 Default Emissions\n(mtons CO2e/year", "20,653", "2015 Effective Emissions\n(mtons CO2e/year", "0", "www.nvenergy.com/bill_inserts/2016/Power_\nContent_Insert_NVE-North_2016-01.pdfl", "Actual fiscal year 2015 energy data", "Table_data_appB_59", "Resource Advisor generated utility emissions values (utility-specific data).", "Table_Head_App_B_2", "Maiden, North Carolina—100% renewable since opening June 2010", "Duke Energy Default Grid Mix", "Apple Actual Renewable Energy Use", "Nuclear", "51%", "Solar PV Projects", "36%", "Coal", "33%", "Biogas Fuel Cells", "28%", "Other", "16%", "NC GreenPower (80% solar)", "36%", "Renewable", "lt;1%", "2015 Default Emissions\n(mtons CO2e/year", "99,907", "2015 Effective Emissions\n(mtons CO2e/year", "0", "From Duke Energy Carolinas 2015 Statistical Supplement generation data", "Actual fiscal year 2015 energy data", "Table_data_appB_80", "Resource Advisor generated utility emissions values (utility-specific data).", "Energy Use(kWh)Renewable Energy(kWh)Default Utility Emissions(metric tons CO2e)Apple’s Emissions - including renewable energy(metric tons CO2e)% Renewable EnergyFY201142,524012120%FY201238,552,2711,471,68017,22016,5434%FY201379,462,86046,966,89131,75714,49359%FY2014108,659,69388,553,38044,33810,97681%FY2015142,615,026121,086,06160,49512,74085%", "Energy Use", "Renewable Energy", "U.S.", "75,671,765", "75,671,765", "100%", "Europe", "36,595,776", "36,595,776", "100%", "APAC", "29,911,090", "8,818,520", "29%", "Other", "436,395", "0", "0%", "FY2015 TOTAL", "142,615,026", "121,086,061", "85%", "Appendix C", "Assurance and Review Statements", "BUREAU VERITAS NORTH AMERICA INDEPENDENT ASSURANCE STATEMENT ", "NaturalGas Consumption: ", "Electricity Consumption:", "Renewable Energy", "Scope 1 GHG Emissions", "Scope 2 GHG Emissions(Location-Based)", "Scope 2 GHG Emissions(Market-Based)", "Scope 3 GHG Emissions–Business Travel ", "Scope 3 GHG Emissions–Employee Commute", "Water Withdrawal", "Trash disposedLandfill", "Hazardous Waste (Regulated waste)", "Recycled Material (Removal by recycling contractor)", "Review and Verification Statement Company Carbon Footprint – Scope 3: Product related Carbon Footprint for Fiscal Year 2015 ", "Review Statement Company Fiber Footprint ", "Appendix D", "Environmental Health and Safety Policy Statement", "Appendix E", "EMS Certification", "This report is published annually and covers fiscal year 2015 activities, unless otherwise noted.", "This report addresses environmental impacts and activities at Apple-owned facilities (corporate offices, data centers, and retail stores), \nas well as the life-cycle impacts of our products, including in the manufacturing, transportation, use, and end-of-life phases.", "To provide feedback on this report, please contact environment-report@apple.com. ", "Heather Mahon Acting Head of Policy, Risk and Certification ", "CERTIFICATE O F REGISTRATION ", "Natural gas", "Fleet vehicles", "Scope 2 (effective)", "Scope 3", "Business travel", "Employee commute", "U.S.", "International", "U.S.", "International", "million btu/year", "Data centers", "Retail", "Corporate", "Recycled ", "Composted", "Hazardous waste", "Landfill diversion rate", "Fiscal Year 2011", "CorporateCupertino, CAElk Grove, CAAustin, TXOther U.S.Cork, IrelandSingaporeChinaOther International", "Data centersMaiden, NCNewark, CA", "Retail storesDomestic (U.S.)International", "Totals", "Fiscal Year 2012", "CorporateCupertino, CAElk Grove, CAAustin, TXOther U.S.Cork, IrelandSingaporeChinaOther International", "Data centersMaiden, NCNewark, CAPrineville, OR", "Retail storesDomestic (U.S.)International", "Totals", "Fiscal Year 2013", "CorporateCupertino, CAElk Grove, CAAustin, TXOther U.S.Cork, IrelandSingaporeChinaOther International", "Data centersMaiden, NCNewark, CAPrineville, ORReno, NV", "Retail storesDomestic (U.S.)International", "Totals", "Fiscal Year 2015", "Corporate", "Cupertino, CA", "Elk Grove, CA", "Austin, TX", "Other U.S.", "Cork, Ireland", "Singapore", "China", "Other International", "Data centers", "Maiden, NC", "Newark, CA", "Prineville, OR", "Reno, NV", "Retail storesDomestic (U.S.)International", "Totals", "Percent Renewable" ]

[ "Maximizing the contribution of every individual allows us to infuse diverse thought as a natural part of the way we innovate. With that in mind, we value accountability and learning as key ingredients to nurturing an inclusive culture. \nOver the last three years, we have incorporated \na Global Diversity and Inclusion Leadership \nCommitment in the business priorities of more than 16,963 Microsoft people managers. This commitment, which is tied to overall performance and compensation, helps ensure that our people and talent development processes include a focus on diversity. \nWe also routinely apply our Diversity and Inclusion Maturity Model Assessment across our teams to help evaluate their engagement, progress, and opportunities related to diversity and inclusion issues. As our organizational structure changes, we will work with each new team to complete an assessment in an effort to ensure that diversity and inclusion are infused into our \nrefined business strategy. \nUsing data from our annual employee poll, we developed our first-ever “Diversity and Inclusion Index” that allowed us to begin to identify additional opportunities to further develop our company in areas related to culture, diversity, and inclusion. \nWe have a robust portfolio of diversity and inclusion training courses for all levels of employees and leaders around the world. Key courses include \n“Managing InclusionTM,” “Building an Inclusive \nCulture: Understanding Conscious and Uncon\nscious Bias,” “CulturalDexterityTM,” and “Consulting for Diversity Hiring,” developed specifically for \n\n Performance Highlights_15\n\n Performance Highlights_16\n\n Performance Highlights_17\n\n Performance Highlights_18\n\n Performance Highlights_19", "74 countries. \nWe advanced our three-year commitment to \ncreate opportunities for 300 million youth by 2015 under the Microsoft YouthSpark initiative. YouthSpark has created education, employment, \nand entrepreneurship opportunities for 227 million \nyouth since launch, including 124 million in FY14. \nThis year we also faced new challenges and took bold steps forward to meet our longstanding commitment to ensuring the privacy and security of our customers’ data. This included expanding our use of encryption across our services, providing choice and transparency on data location, and strengthening legal protections for our customers’ privacy. We led the way in advocating for reform of government surveillance \npractices. Going forward, we are committed to \nusing data to create intelligent, personal experiences that help our customers do more while maintaining the security and privacy of their data. \nWe continue to implement an industry-leading carbon neutrality program and expand our investments in renewable energy to power our cloud \nservices. In FY14, we purchased more than \n3 billion kilowatt-hours of green power, equal to 100 percent of our global electricity use. \nIn FY14, we made marked progress against our \ncitizenship commitments and I am energized and optimistic about our ongoing work in these areas. I am committed to advancing our citizenship commitments as we move forward with intensity to once again change the world. \nSincerely, \nSatya Nadella Chief Executive Officer ", "In FY14, we completed 217 third-party audits and Microsoft assessments of 131 Tier 1 and high- and medium-risk Tier 2 \nhardware suppliers. Critical/serious nonconformance \nfindings are detailed in this report. In all of these instances, \nthe suppliers instituted corrective action plans that were \napproved by Microsoft, and follow-up audits confirmed that \nthe suppliers were implementing the corrective action plans. \nWe also expanded our work with our hardware suppliers \nto build their capabilities on environmental health \nand safety management and to improve factory workers’ \nliving environments. \nMicrosoft began to screen our non-hardware suppliers against 23 different ethical, social, and environmental risks \nby country and by commodity category and to roll out new assurance requirements for the suppliers found to pose \nthe highest risks. ", "We are focused on and committed to increasing computing power per unit of energy consumed across the services and devices that we offer in the marketplace. Each new version of Windows \noffers enhancements to energy efficiency and \npower management tools. Through products like Microsoft System Center we provide IT administrators with controls to implement group policies that apply energy-saving power management settings across all the computers on their network. The move to cloud computing is also enabling \nmore efficient computing, which we’re boosting \nby building new energy-saving features into our cloud services. Our Azure online service includes tools to allow developers to easily auto-scale their applications, which reduces energy use and their costs. \nWe’re also driving energy efficiency in our devices. The latest version of the Xbox 360, for instance, \nuses less than half the energy for game play and \nnavigation mode than the first Xbox released in 2005. Despite its increased next-generation computing power and functionality, the Xbox One \nlaunch version uses less power than the launch \nversion of the Xbox 360 did (although more than the latest Xbox 360 version). We ship all Xbox \nconsoles with auto-power down features turned on by default so that when the consoles are not being used they automatically turn off. \nSimilarly, the Microsoft Surface tablet launched \nwith dramatically lower power consumption than current laptop computers and we’ve held energy use steady as we’ve introduced newer, more powerful versions. ", "\n Performance Highlights\n\n Performance Highlights_0\n\n Performance Highlights_1\n\n Performance Highlights_2\n\n Performance Highlights_3\n\n Performance Highlights_4\n\n Performance Highlights_5\n\n Performance Highlights_6\n\n Performance Highlights_7\n\n Performance Highlights_8\n\n Performance Highlights_9\n\n Performance Highlights_10", "During FY14, we purchased more than 3 billion \nkWh of green power, equal to 100 percent of our global electricity use. We also signed a 20-year agreement to purchase 100 percent of \nthe output of the 110-megawatt (MW) Keechi \nWind project, a new wind farm that will begin \noperating in 2015. We generate a small amount \nof onsite renewable energy, such as from solar \npanels covering the rooftops on our Silicon Valley campus. Finally, access to renewable energy is \namong the criteria that we consider in siting datacenters. A number of our datacenters, like \nour complex in Quincy, Washington, are powered \nby hydroelectricity. ", "Through these and other programs, we have reached thousands of diverse students around the world, supporting them in their pursuit of technical careers. \nWhile much work remains to be done, we are \npleased that FY14 marked a year of continued \nprogress in increasing the diversity of our workforce and leadership, including: \n• Growing the percentage of women in our \nMicrosoft 2014 Citizenship Report _2\nL\ntext", "\n Performance Highlights_33\n\n Performance Highlights_34\n\n Performance Highlights_35\n\n Performance Highlights_36\n\n Performance Highlights_37\n\n Performance Highlights_38\n\n Performance Highlights_39\n\n Performance Highlights_40\n\n Performance Highlights_41", "\n Performance Highlights_45\n\n Performance Highlights_46\n\n Performance Highlights_47\n\n Performance Highlights_48\n\n Performance Highlights_49\n\n Performance Highlights_50\n\n Performance Highlights_51\n\n Performance Highlights_52\n\n Performance Highlights_53", "Microsoft 2014 Citizenship Report _7\nThis document is provided as is. Information and views expressed in this document, including URL and other Internet website \nreferences, may change without notice. You bear the risk of using it. \nThis document does not provide you with any legal rights to any intellectual property in any Microsoft product. \nYou may copy and use this document for your internal reference process. \n© 2014 Microsoft. All rights reserved. \nBing, BizSpark, DreamSpark, Imagine Cup, Internet Explorer, Office, Office 365, Outlook, Microsoft, Microsoft Azure, Microsoft Dynamics, Microsoft YouthSpark, PhotoDNA, OneDrive, Skype, Surface, Windows, Xbox, Xbox 360, Xbox One, Xbox LIVE, and Yammer are trademarks of the Microsoft group of companies. All other trademarks are property of their respective owners. \nPlease consider the environment before printing this report. ", "We are entering a world where there will soon be more than 3 billion people with Internet-connected devices — from a farmer in a remote part of the world with a smartphone to a professional power user with multiple devices powered by cloud-based apps spanning work and life. Our ambition for this world is simple yet bold. At our core, Microsoft is the productivity and \nplatform company for the mobile-first, cloud-first world. We will reinvent productivity to \nempower every person and every organization on the planet to do more and achieve more. \nOur customers and society expect us to maximize the value of technology while also preserving the values that are timeless. Microsoft’s commitments to corporate citizenship help us meet these expectations. \nIn fiscal year (FY) 2014, we expanded our work to help nonprofits do more with technology and \ndonated $948.6 million of software and hard\nware to more than 86,000 nonprofits around the globe. This includes the launch of Office 365 for Nonprofits, with $55 million worth of Office 365 subscriptions donated to 11,500 NGOs in ", "\n Performance Highlights_20\n\n Performance Highlights_21\n\n Performance Highlights_22\n\n Performance Highlights_23\n\n Performance Highlights_24\n\n Performance Highlights_25\n\n Performance Highlights_26", "Microsoft’s total annual giving surpassed $1 billion for the \nfirst time, with cash donations of $119 million and in-kind \ndonations worth $948.6 million. \nThe Microsoft YouthSpark Initiative is on track to surpass our \ngoal of creating opportunities for 300 million youth over three years, having created opportunities for 227 million youth to date, including 124 million in FY14. \nWe launched Office 365 for Nonprofits in 92 countries around the world, providing $55 million worth of Office 365 subscriptions to nearly 11,500 nonprofits globally. ", "\n Performance Highlights_27\n\n Performance Highlights_28\n\n Performance Highlights_29\n\n Performance Highlights_30\n\n Performance Highlights_31\n\n Performance Highlights_32", "\n Our Approach_2\n\n Privacy and Data Security Global Network Initiative Working to Protect the Rights\n\n of Vulnerable Populations\n\n Accessible Technology\n\n FY14 Highlights and FY15 Commitments", "We met our carbon neutrality commitment through \ninternal efficiency projects, the purchase of more than 3 billion kilowatt hours (kWh) of renewable energy (equal to 100 percent of our global electricity use), and a carbon offset project portfolio representing more than 600,000 metric tons of carbon dioxide (CO2) emissions. \nWe achieved our goal that all new datacenters have an \naverage 1.125 Power Usage Effectiveness (PUE), which is one-third less than the industry average datacenter \nPUE of 1.7. ", "\n Our Approach_0\n\n Compensation and Benefits\n\n Workforce Diversity and Inclusion Training and Development Employee Wellness and Occupational\n\n Health and Safety FY14 Highlights and FY15 Commitments", "\n Performance Highlights_11\n\n Performance Highlights_12\n\n Performance Highlights_13\n\n Performance Highlights_14", "Microsoft 2014 Citizenship Report _3\nMicrosoft 2014 Citizenship Report _4\nMicrosoft 2014 Citizenship Report _5\nMicrosoft 2014 Citizenship Report _6", "\n Commitment to Ethics and Standards\n\n of Business Conduct\n\n Corporate Governance Public Policy Engagement FY14 Highlights and FY15 Commitments", "\n Our Approach Climate and Energy Operational Impacts Reducing Impacts Across the Life Cycle\n\n of Our Devices Applying Technology to Environmental Challenges\n\n FY14 Highlights and FY15 Commitments_0", "More than 99 percent of Microsoft employees completed annual training on our Standards of Business Conduct, which is available globally in 17 languages. \nThe Board of Directors appointed an independent Chairman, John Thompson, coincident with Satya Nadella’s \nappointment as Chief Executive Officer. ", "Eighty-six percent of employees polled said they would recommend Microsoft as a great place to work. \nThe percentage of women in our global workforce grew \nfrom 24 to 28 percent and the percentage of Microsoft senior executive women and minorities increased from 22 to 27 percent. ", "We instituted new privacy and data security measures including expanding our use of encryption across our services, providing choice and transparency on data location, and strengthening legal protections for customers. We fought for and won the right to increase our disclosure on the volume of national security orders for customer data that we receive from the US government. \nMicrosoft completed the Global Network Initiative (GNI) Phase III Assessment, conducted by an independent assessor, and the GNI Board determined that Microsoft is compliant with the GNI Principles on Freedom of \nExpression and Privacy. ", "\n Performance Highlights_42\n\n Performance Highlights_43\n\n Performance Highlights_44", "\n Citizenship Governance\n\n Ethical Business Conduct", "\n Our Approach_1\n\n Microsoft YouthSpark Technology for Good Humanitarian and Disaster Response Employee Giving and Volunteerism FY14 Highlights and FY15 Commitments", "\n Our Approach_3\n\n Social and Environmental Accountability in Our Hardware Supply Chain Responsible Sourcing of Raw Materials Addressing Non-hardware Suppliers FY14 Highlights and FY15 Commitments", "H3_6\nP_10", "Microsoft 2014 Citizenship Report _0\nMicrosoft 2014 Citizenship Report _1", "LI", "LBody\nLBody_0", "Microsoft 2014 Citizenship Report ", "Letter From Our CEO ", "Contents ", "Link", "Our Company ", "P_1", "\n Our Business", "Link_0", "and Governance ", "P_3", "\n Our Approach", "Link_1", "Our People ", "Link_2", "Serving Communities ", "Link_3", "Human Rights ", "Link_4", "Responsible Sourcing ", "Link_5", "Environmental Sustainability ", "Link_6", "About This Report ", "\n Scope and Standards", "Ethical Business Conduct ", "H3_7", "and Governance ", "H3_8", "Our People ", "\n Select Performance Highlights", "Select Performance Highlights ", "Serving Communities ", "Human Rights ", "Responsible Sourcing ", "Environmental Sustainability ", "Workforce Diversity and Inclusion ", "Increasing the percentage of Microsoft senior executive women and minorities from 22 to 27 percent; ", "Raising the percentage of women and minorities on the Microsoft Board of Directors from 33 to 40 percent. ", "global workforce from 24 to 28 percent; ", "Building an Inclusive and Engaging Culture ", "\n Performance Highlights", "Climate and Energy ", "Using Renewable Energy ", "In order of preference, we seek to use renewable energy by: ", "Driving Energy Efficiency in Our Services and Devices " ]

[ "TR", "TH\nTD\nTD_0\nTD_1", "LI_4", "LBody_13\nLBody_14\nLBody_15", "Link_1\ntext_9", "PowerForce\nNative Renewables\nThree Part Harmony Farm\nBridging the Gap in Virginia\nWest Atlanta Watershed Alliance\nPittsburghers for Public Transit\nHarambee House\nLittle Village Environmental Justice Organization", "Contents\nOverview\nMicrosoft sustainability_0\nCustomer sustainability \nGlobal sustainability \nAppendix \nStay up to date on our progress ", "LI_0", "LBody_2\nLBody_3\nLBody_4\nLBody_5\nLBody_6\nLBody_7", "LI_6", "LBody_20\nLBody_21\nLBody_22\nLBody_23\nLBody_24", "LI_7", "LBody_25\nLBody_26\nLBody_27\nLBody_28\nLBody_29", "LI_8", "LBody_30\nLBody_31\nLBody_32\nLBody_33\nLBody_34", "LI_11", "LBody_38\nLBody_39\nLBody_40\nLBody_41\nLBody_42", "LI_17", "LBody_56\nLBody_57\nLBody_58\nLBody_59\nLBody_60", "1.4M metric tons We contracted 1,443,981 metric tons of carbon removal in FY22. We also made first-of-a-kind multi-year forward offtake commitments to carbon removal, which we view as the model for scaling this industry.\n12,159 metric tons In FY22, we diverted 12,159 metric tons of solid waste from landfills and incinerators across our direct operational footprint.\n12,270 acres In FY22, we protected 12,270 acres of land in Belize. We now protect more than the 11,206 acres of land that we use. \nFormula_0", "LI_5", "LBody_16\nLBody_17\nLBody_18\nLBody_19", "LI_13", "LBody_46\nLBody_47\nLBody_48\nLBody_49", "LI_16", "LBody_52\nLBody_53\nLBody_54\nLBody_55", "Link_6\nLink_7\nLink_8\nLink_9", "13.5 GW In FY22, we signed new PPAs around the globe, bringing our total portfolio of carbon-free energy to over 13.5 GW, including projects in 16 countries and more than 135 clean energy projects. \n1M By the end of FY22, we provided more than 550,000 people with access to clean water and sanitation solutions in Brazil, India, Indonesia, and Mexico and reached just under one million people by the end of the calendar year 2022.\n82% Our reuse and recycle rates of servers and components across all cloud hardware reached 82 percent in FY22. \ntext_34", "Scope 1 amp; 2 Our Scope 1 and 2 (market-based) emissions remained proportional with business growth in FY22.\nEnvironmental justice Environmental justice is embedded in our water access target, and we are looking for ways to be more intentional about integrating environmental justice into our replenishment investments.\n29% We reduced single-use plastics in our Microsoft product packaging by more than 29 percent, a decrease from 4.7 percent to 3.3 percent by weight (on average) of plastic per package in FY22. \nProtecting biodiversity Last year, we contributed to the TNC Belize Maya Forest Project (BMF) to protect an additional 236,000 acres in a global biodiversity hotspot. ", "LI", "LBody\nLBody_0\nLBody_1", "Link\ntext_7", "LI_10", "LBody_36\nLBody_37", "LI_12", "LBody_43\nLBody_44\nLBody_45", "LI_19", "LBody_62\nLBody_63\nLBody_64", "LI_20", "LBody_65\nLBody_66\nLBody_67", "LI_1", "LBody_8\nLBody_9", "LI_2", "LBody_10\nLBody_11", "ENGIE\nEnergyScore", "Link_0\ntext_8", "Formula\ntext_12", "Link_2\ntext_16", "\n15.6M m3 \n\n15.6 million m3", "2022 Environmental Sustainability Report", "Advancing AI solutions for greater climate impact.", "Accelerating the development of sustainability markets through investment.", "Creating tools that advance emissions measurement and compliance.", "As we look toward 2030—and beyond—we remain optimistic about our collective ability to decarbonize the global economy while continuing to grow and prosper as a global community. We will continue investing in three key areas that will enable the scale of sustainability solutions needed to address the climate crisis: ", "Set commitments based on science Sustainability science has been at the center of our commitments. In 2019, Microsoft took a step back to look at the science behind climate change and saw that our commitment to being carbon neutral was not enough. The world needs to reach net zero by or before 2050, and achieving it relies heavily on private sector partnership and action. This guided us to make our commitments to be a carbon negative, water positive, zero waste company by 2030. ", "Consider all positions of influence As a global technology leader, Microsoft has many opportunities to influence—as a customer, supplier, investor, employer, policy advocate, and innovation partner. We know it will take commitment across our entire value chain to reach our goals. We also focus on the larger impact that we can have with research, investments, innovation, strategic partnerships, policy, and advocacy. ", "Establish sustainability as part of culture At the heart of the Microsoft culture is the belief that for Microsoft to continue to do well, the world around us also needs to do well. As we continue to grow, we are pursuing opportunities that help solve the problems of people and the planet—and we have made sustainability core to our brand and our business. Our senior leadership team has a deep and enduring commitment to sustainability, which sets the tone across all levels of our organization. ", "Make it central to business To move from pledges to progress, Microsoft set commitments and built sustainability into the strategy, operations, and roadmaps of each business group and every subsidiary across the globe. We are also working across our value chain on sustainability commitments and support our customers and partners by delivering capacity-building tools and solutions. ", "Ensure governance and accountability Governance and accountability are critical to ensure cross-company alignment and prioritization of sustainability commitments. At Microsoft, we hold our business groups accountable for their carbon emissions via an internal carbon fee. Achieving our sustainability commitments is a core priority for every business group; we publish scorecards twice yearly and review progress quarterly. We established a Climate Council of senior leaders across the company to govern our sustainability progress and priorities. ", "Report on everything, not just progress Transparency needs to be a component of any sustainability initiative. Microsoft is committed to sharing our progress, learnings, innovations, methodology development, and thought leadership through our annual sustainability report, white papers, blogs, and journal publications. We share playbooks from our successes, as well as learnings when we uncover new challenges or setbacks. These learnings also inspire us to champion global issues such as more reliable and interoperable global carbon accounting, a more systematic approach to building a multidisciplinary workforce of sustainability experts, and the development of innovative technology solutions for our customers and partners.", "For any organization’s environmental sustainability journey, it is critical to set commitments, develop a strategy, and build an operational roadmap—all while measuring progress and ensuring accountability. We’ve learned a lot over the last three years of Microsoft’s sustainability journey, and we hope that sharing our approach can help other organizations as they develop their own roadmap. ", "Our Scope 1 and 2\n", "Our value chain or Scope 3 emissions increased slightly at 0.5 percent, despite a 25 percent increase in purchased goods and services due to business growth. This result was driven by improvements in our operations, telemetry-based measurement, renewable energy investments, sustainable aviation fuel purchases, and procurement of unbundled renewable energy certificates (RECs).\n", "The chart has been updated to reflect the latest actual values which incorporate the latest methodology, management’s criteria metrics, and structural change adjustments. Scope 2 and 3 values are market-based and management’s criteria metrics. ", "Carbon negative by 2030: A company is carbon negative when it removes more carbon than it emits each year.", "\n Learn more in the Environmental Data Fact Sheet", "Scope 2 and 3 values are market-based and management’s criteria metrics. ", "Reported emissions for FY20 and FY21 have been recalculated for improved accuracy in accordance with our internal recalculation policy. We were able to disaggregate and identify previously unreported electricity for some of our leased datacenters due to improvements in our ability to capture such data.", "\n Learn more in the Environmental Data Fact Sheet", "LI_3", "LBody_12", "Scope 2 and 3 values are market-based and management’s criteria metrics.", "\n Learn more in the Environmental Data Fact Sheet", "Surface Pro 9 and Surface Laptop 5 are among the most energy efficient Surface computers, and both are ENERGY STAR® Certified, consuming less than half the recommended energy limit from the latest ENERGY STAR computer specifications.\n", "We supported the development of two new community solar gardens in Illinois, which are expected to have a capacity of 4.75 MW with a focus on expanding access to renewable power to traditionally under-resourced populations. \n", "Clearloop", "We supported a 6.6-MW solar facility in Panola County, Mississippi, which provides first-time solar access to consumers in a county with majority Black residents and a poverty rate that is double the United States average. By using emissions data to determine where new solar generation can displace the most carbon, \n", "Through a justice-centered selection process led by the Just Transition \n", "Examples of how we’ve worked to integrate equity and justice into our approaches include the following:", "With PosiGen Louisiana Solar, we supported the reduction of electricity bills for low-to-moderate income residents through financing solar and energy efficiency projects that can also strengthen resiliency for homes in underserved communities. ", "We supported programs with California Rooftop Solar at Wildmind Science Center, which funds environmental engagement programs for 120,000 at-risk youth.", "Microsoft has purchased solar RECs from school districts that were supported by the California Bright Schools program. The program identifies energy saving opportunities for schools, saving general fund dollars and providing educational opportunities for students and teachers. ", "We supported the purchase of “Peace RECs” (P-RECs) in Sub-Saharan Africa. These credits are generated through projects located in countries with high risk of conflict, high vulnerability to climate change, low levels of electrification, and limited access to renewable energy finance. In May 2022, Microsoft made the largest P-REC transaction to date, building on our first P-REC purchase in 2020. This first purchase funded the installation of public streetlights connected to Nuru’s 1.3-MW solar mini-grid in Ndosho neighborhood in Goma, Democratic Republic of the Congo. Our 2022 purchase also supports first-time electricity connections for households, businesses, and social institutions, and deploys additional streetlights that improve nighttime security and allow local businesses and markets to operate during evening hours. The purchase also contributes directly to the financing of Nuru’s new 3.7 MW solar metro-grid, which is anticipated to serve 5,000 customers and enhance more than 25,000 lives. Together, these projects are some of the largest off-grid mini-grids operating in Sub-Saharan Africa, eventually benefiting 125,000 people and raising the average electricity rate from three percent to around 20 percent. ", "This year, with Sustainable Energy for All (SE For All), an organization that works in partnership with the United Nations, Microsoft committed to take actions that drive toward decarbonization of the electric grid to combat climate change. Energy Compacts were introduced in 2021 as a key outcome of the High-level Dialogue on Energy, which calls for affordable, reliable, sustainable, and modern energy for all by 2030. Microsoft joins national and local governments, businesses, foundations, and international civil society and youth organizations from every region who have submitted Energy Compacts, reflecting actions and finance commitments. Microsoft’s Energy Compact documents its 100/100/0 commitment to carbon-free energy. ", "Nascent, high-quality solutions that need early support to scale ", "\ntons/year", "Mature proposals for large-scale projects (for example, gt;500,000 metric ", "Financial institutions ready to provide, or curious about, project-level lending against credit-worthy offtakes ", "Other buyers ready to syndicate offtakes to assure capacity gets built ", "Insurance, assurance (such as independent MRV), and performance-guarantee players across CDR approaches ", "We are three years into our mission to build the carbon dioxide removal (CDR) capacity that the world will require to prevent the worst effects of climate change. ", "Geopolitics are affecting supply chains Geopolitical implications of world conflict and the global pandemic have hit supply chains hard, with impact on renewable energy supply and suppliers’ ability to go beyond business as usual to deliver innovative new goods and services, such as decarbonization technologies.", "Emissions data quality needs to improve across the value chain Data quality continues to be an area of need across the sustainability landscape—especially in supply chain, capital goods, and logistics. Our update to our SCoC to require suppliers to have their data assured aims to improve the quality of our supply chain data. ", "Data methodologies will continue to evolve Methodologies are evolving and will continue to do so for the next several years. Like other companies, we are focused on improving our calculation methodologies to lead the industry and improve the actionability of our data and opportunities. ", "Corporate investment is needed to scale nascent markets Stakeholder expectations are increasing for corporate involvement in renewable energy, SAF, and carbon removal markets. While we are further along the trajectory toward higher-impact vehicles for renewable energy, we see credit-based mechanisms for funding SAF, green steel, green concrete, and carbon removal as critical for jumpstarting these nascent markets. ", "Lower embodied carbon in materials needs to be a focus Lower embodied-carbon solutions for key materials—such as semiconductors—have yet to be developed commercially or at scale. We are looking ahead to cross-sector partnerships to help jumpstart these strategies. ", "Increasing efficiency: We will design our products and infrastructure in ways that reduce energy and carbon intensity, minimizing both downstream and upstream carbon emissions. ", "Building markets: Scaling sustainability initiatives, such as the Microsoft Climate Innovation Fund and carbon fee, position us to invest in and purchase from nascent technology providers, like Heirloom, to build supply chains for decarbonized materials and fuels. ", "Forging partnerships: Microsoft cannot achieve carbon negative alone. We will scale supply chain decarbonization by aligning financial and government leadership, to signal global market demand and infuse investment into infrastructure and technology solutions worldwide. ", "Improving measurement: We cannot manage what we cannot measure. We are developing improved Scope 3 data visibility and carbon accounting methodologies to better guide and reflect meaningful actions towards reducing carbon emissions. ", "Advocating for policy: We will propose and endorse public policies that enrich markets, partnerships, and measurement activities, with a focus on “greening the grid,” by further opening the power sector to corporate clean energy purchases and upgrading electric transmission. ", "Many of the technology solutions needed to reduce Scope 3 emissions are either nascent or currently unavailable at scale. GHG accounting standards provide limited guidance on how to address Scope 3 emissions. For too long, the lack of a clear starting point has led to persistent inaction on Scope 3. The private sector needs a new approach; one that prioritizes learning by doing and innovation through experience. We are enacting a five-part Scope 3 strategy: ", "LI_9", "LBody_35", "Reported replenishment values were updated to represent contracted impact over the lifetime of a project. This update in reporting was driven by our effort to improve our measurement methodologies.", "\n Learn more in the Environmental Data Fact Sheet", "water.org", "Reported access values represent data reviewed and validated by \n", "Microsoft’s reported replenishment values represent impact since program’s inception in FY18.", "\n Learn more in the Environmental Data Fact Sheet", "Reducing our water footprint across our direct operations ", "Increasing access to water and sanitation services ", "Replenishing more water than we consume across our operations ", "Scaling water solutions through innovation and digitization ", "Advocating for effective and innovative water policy ", "We take a holistic approach to water reduction across our campuses and datacenters from design to efficiency in existing systems, recycling and repurposing, and innovating new technologies. We measure and report the global water use of our campuses and datacenters to drive efficiency and reuse. ", "Water requires a collective approach Working collectively to solve challenges at the basin scale is critical. Water is a resource that every person and business on this planet needs to survive. We can use as little water in a location as possible and replenish more than we use, yet that basin can still be highly stressed and not provide local communities with what they need. ", "Replenishment needs to evolve and scale if companies are going to meet their goals Replenishment is a nascent market with limited guidance on what it means, how to account for benefits, how to make credible claims, and how to ensure replenishment investments are having a significant impact in high-stressed basins. Furthermore, the supply of replenishment projects in many global markets is limited or non-existent. Cultivation of credible partners to manage and implement replenishment projects, as well as investment in innovative replenishment projects with non-governmental organizations (NGOs) and private sector entities, are critical to scale the market and collective impact. ", "Innovation is a critical piece of the puzzle Water challenges will become more extreme in the years to come. If we continue with the status quo, we will not protect freshwater resources for future generations. Organizations need to innovate within their own operations, supply chain, and the communities in which they operate by investing in solutions that maximize efficiency and reduce dependence on freshwater resources. There is also an important role for organizations and investors to play in providing the capital to scale water technologies needed to tackle water scarcity, quality, and access. ", "Investing in innovative replenishment projects We anticipate increasing the number of innovative replenishment projects that we invest in between now and 2030. We will look at projects with innovative funding mechanisms, such as revolving or low-interest loans. We also plan to look at projects where we procure volumetric water benefit from private sector entities, including start-ups, that offer a unique solution to the water challenges we face today, for example leak detection projects in distribution networks and transmission mains. As we invest in these projects and track learnings, we remain committed to sharing those with others. ", "Integrating environmental justice into replenishment Environmental justice is embedded in our water access target, and we are looking for ways to be more intentional about integrating environmental justice into our replenishment investments as well. This includes looking at ways we can ensure our replenishment investments support disadvantaged communities, as well as the potential unintended consequences of projects that could cause harm to disadvantaged communities in the locations where we operate. ", "Scaling our efforts to reduce water use across operations Investment in reduction is a critical component of our water positive commitment and one we are focusing on as we get closer to 2030. While we continue to maximize our efficiency for our datacenters and campuses, we will also continue to look for opportunities to invest in innovations that will help us to further reduce our dependence on freshwater sources. ", "Investing in projects that will increase access to water and sanitation solutions We are looking for ways to scale our investments in new and existing locations where people lack access to water and sanitation services. Micro-loans are a unique solution and fill a need in many locations across the globe. There are also many people across the globe who can’t afford a loan and thus are not supported through the types of investments we have made thus far. As we move towards 2030 and beyond, we will be looking for ways to support populations that are not being reached. ", "By 2025, 90 percent of servers and components for all cloud hardware will be reused and recycled with support from our Circular Centers.\n", "LI_14", "LBody_50", "Starting in FY22 we transitioned to a methodology with improved accuracy in mass accounting and standardized recycling efficiency coefficients.", "\n Learn more in the Environmental Data Fact Sheet", "LI_15", "LBody_51", "Reported metrics consider all hardware and consumer software packaging of the Microsoft products produced and sold during the reporting year.", "\n Learn more in the Environmental Data Fact Sheet", "Circularity can reduce embodied carbon As industries like design and construction align around embodied carbon measurement tools, significant opportunities open up to reach not just circularity and waste reduction goals but also carbon reduction goals. Implementing responsible materials management and circular practices with technologies allows for optimized reuse and recycling of materials. ", "Innovation in data acquisition must be prioritized Further strides are needed to improve waste data. Currently, downstream systems are dependent on estimation of material volume and weight. Systemic investment is needed across the value chain to provide actual and real-time data, which includes data points from collection, processing, and material availability. Improvements in data accuracy will provide critical insight into an organization's footprint, informing immediate next steps and driving long-term innovation. ", "Data methodologies must be standardized To effectively use information from across the value chain, industry standards must be introduced to ensure consistency of measurement and interpretation of data. Circularity will be accelerated through global benchmarking, coordinated efforts to track progress, and cross-industry accountability. ", "A circular transition should be a just transition Engagement with underrepresented and under-resourced communities is imperative to ensure a holistic approach to circularity. People are at the center of any economic transformation and ensuring accessibility and equity must be prioritized. Alongside any mitigation efforts for environmental impact, community engagement and investment are paramount to any circular economy. ", "Accelerating progress towards zero waste by 2030 Microsoft will use roadmaps across the company to enable key activities that result in zero waste outcomes that center circularity. We will continue to scale our programs, including Circular Centers, design for circularity in buildings and hardware, and the elimination of single-use plastics from packaging for Microsoft products and across our cloud hardware supply chain. ", "Expanding our circular strategy across Microsoft In efforts to further accelerate progress towards our zero waste and Scope 3 carbon reduction commitments, we are working across the enterprise and with external partners to prioritize actions that align with our circular strategy. By taking a coordinated approach, we will use the expertise of our team to unlock key barriers and further drive innovation at scale. ", "Streamlining our collection systems We are engaging with industry collaborators on piloting new electronic collection systems. These new systems will allow for better data such as weights, material type, and recycled content, ensuring regulatory compliance and supporting decision making around driving circular economy initiatives. ", "Growing the scope and impact of our environmental justice initiatives As we learn from our existing partnerships, we are building out the framework to integrate environmental justice into our activities. We will continue to build on existing community partnerships, such as our partnership with Zero Waste Westside, and explore new ones in communities we operate in to create opportunities for economic inclusion and community well-being. ", "Redesigning cloud rack packaging To further our progress towards our zero waste objectives, our Cloud Logistics Team has undertaken a deeply collaborative process with stakeholders from across the enterprise to source and design world class reusable solutions for the safe and sustainable transportation of Microsoft's server racks. Today, the transportation of each server rack from integration to our datacenters results in over 100kg of packaging waste. We're aiming to reduce this to zero with our new solutions, enabled by a circular supply chain and logistics network design. ", "LI_18", "LBody_61", "Taking a science-based approach to land protection Microsoft is using the Last Chance Ecosystems framework to prioritize our selection of land protection projects and partner with the UN Biodiversity Lab and the Group on Earth Observations Biodiversity (GEO BON) on developing conservation management tools. ", "Protecting more land than we use by 2025 Microsoft will continue to monitor the progress of our remaining land protection investments. The NFWF projects we invested in are on track to be protected by the end of 2023. We will also track how much land Microsoft directly operates on, to ensure we are protecting more land than we use. ", "Being good stewards of the land we use As we look to incorporate regenerative strategies across our footprint, we have assessed the ecosystem performance benchmark for several other datacenter regions and are developing tools to standardize and design to this measurement. Modeled results suggest that ecosystem performance can be restored to as much as 75 percent. ", "Centering environmental justice in our ecosystems work We will support localized nature-based solution projects with a flexible, multi-functional, and adaptable approach to simultaneously improve human well-being, social equity, and environmental health for vulnerable communities. ", "The \n Microsoft Cloud for Sustainability data model", "TerraPraxis is a nonprofit focused on actionable solutions for climate and prosperity. In 2022, TerraPraxis and Microsoft entered a strategic collaboration to repurpose over 2,400 coal-fired power plants around the world to run on carbon-free energy. TerraPraxis will combine its deep expertise in energy with Microsoft technology to build and deploy a set of tools to automate the design and regulatory approval process to decarbonize coal facilities with advanced small modular nuclear reactors (SMRs). The partnership will help to accelerate the transition of one of the world's largest sources of carbon to zero emissions. TerraPraxis and Microsoft will develop a software application to analyze the existing coal fleet to determine the best approach for the retrofit, saving coal plant owners time and money while giving the communities around them a new lease on life for decades to come. The partnership started with Microsoft's 2021 Hack for Sustainability when Microsoft employees worked with TerraPraxis to develop the winning project, “Beyond Coal.”\n", "In July 2022, Telstra and Microsoft expanded their long-term strategic partnership, which includes the intention to help advance sustainability in Australia and drive growth. Microsoft will support Telstra in achieving its own sustainability goals with Microsoft Cloud for Sustainability which will provide data insights into sustainability performance. The strategic partnership brings together the best strengths of the two organizations. In 2020, Telstra was certified carbon neutral in their operations, and both Microsoft and Telstra have ambitious climate targets and share a commitment to a net zero carbon future.\n", "Microsoft 365 applications are powered by Azure datacenters, so customers benefit from their significant energy and resource efficiencies. As disclosed in this \n white paper", "Xbox Series X developer kits now include real-time power performance feedback on front panel displays. ", "Performance Investigator for Xbox (PIX), the go-to developer tool for Xbox game and app performance analysis, now includes power utilization counters. ", "Xbox certification labs have started preliminary feedback to our publishing partners on power analysis in their test reports. ", "Gaming activity represents approximately half of the usage-based carbon footprint of Xbox devices. To support first and third-party publishers who design and build games for our Xbox platform, we launched new developer tooling in 2022 to monitor and reduce the power consumption of their games. Our goal is to support game publishers' sustainability goals as we build solutions to lower carbon intensity on console gaming. ", "Our accessory devices have shorter development cycles, making them an ideal way to test new circular materials. We trial new materials in individual products, and if successful, we expand their use across our broader portfolio—such as in Windows Dev Kit 2023, an ARM-based developer kit featuring 20 percent recycled ocean plastic\n", "For example, in Navajo Nation, 40 percent of homes have no running water. To date, Navajo Nation leaders have installed SOURCE Hydropanels on more than 540 homes, bringing these families clean, safe drinking water, often for the first time.\n", "We are investing in the development and growth of carbon markets. Our investment in \n Heirloom", "We have invested in \n FlexiDAO", "This year, we announced a partnership with Alaska Airlines and \n Twelve", "Our commitment to climate innovation extends through our $100 million grant to the \n Breakthrough Energy Catalyst platform", "agriculture ", "Enabling more sustainable decision making in \n", "Predicting microclimates ", "Modeling carbon flow ", "Carbon", "Water", "Waste", "Ecosystems", "Big game migration program Through the NFWF Western Big Game Migration Program, we invested in projects in the American West that are vital for preserving the migration corridors of endangered and at-risk species, including mountain lions and grizzly bears." ]

[ "We are focused on and committed to increasing computing power per unit of energy consumed across the services and devices that we offer in \nthe marketplace. Each new version of Windows offers enhancements to energy efficiency and power management tools, including a new Energy Saver Mode added to Windows 10. Third-party applications also have an important role to play, and we provide energy-smart development guidance and tools for developers and IT professionals developing for the Windows platform.\nIn FY15, Microsoft certified its first ENERGY STAR and EPEAT registered product, Surface Pro 3, when \nthe standards were revised to bring tablets into scope. FY15 was also the first year for ULE 110 certifications of mobile phones. This certification establishes multiple sustainability criteria for mobile phones, including packaging, materials, manufacturing and operations, energy efficiency of the power supply, health and environment, and end of life management. All Xbox consoles are configured to automatically reduce energy use while inactive. We also have committed to limit Xbox energy consumption in dashboard and media play.\nWe work to reduce the environmental impacts of our products and services but see even greater opportunity to benefit the environment at scale by delivering products, solutions, and services that help our customers’ organizations boost efficiency and minimize their environmental impact. \nFor cities, Microsoft CityNext partners provide solutions spanning energy, water, buildings, infrastructure, and transportation to help modernize cities in sustainable ways that will minimize their resource use and environmental impact. Our broad portfolio of familiar consumer and business platforms and partner solutions—which many cities already use—are meeting customers wherever they are on the technology innovation curve and helping them to build a bridge to the future. Within our Sustainable Cities focus, we deliver solutions for:\nTo date, we have recruited more than 1,000 partners that are delivering more than 870 solutions in countries all around the world from Ankara, Turkey, to Auckland, New Zealand.\nThrough data and analytics, customers are gaining vital insights from millions of devices, social media channels, and business systems. This data represents a significant opportunity to make more accurate decisions, achieve greater efficiencies, and become more sustainable in areas like energy, water, buildings, transportation, and countless other scenarios. For example, to increase the use of renewable energy, big data can be used to more effectively understand and anticipate energy demand and consumption in near real time, which can enable more responsive generation. Distribution needs to become more flexible to manage renewable sources, and end use is critical to the equation in taking advantage of technology, eliminating waste, and optimizing consumption. \nThe Safety, Compliance, and Sustainability team within the Microsoft Devices Group incorporates environmental and safety principles and processes in the design and production of our devices and product packaging. The team works with design groups through a Design for Green initiative \nto evaluate and encourage the use of more environmentally benign materials, increase \nthe recyclability of our devices and packaging, \nand minimize material use. The team provides guidance on alternative materials and other ways to address environmental impacts. We also require our suppliers to identify every material that’s in our products and to follow a comprehensive list of restricted substances specifications to avoid hazardous materials. \nTo address sustainability in packaging, we’ve designed packaging for Xbox One, Surface, and our hardware peripherals to reduce the use of materials and replace plastics with paperboard packaging and materials from sugarcane waste. We also set standards of a minimum of 50 percent recycled content (25 percent of which must be post-consumer) for paperboard packaging and a minimum of 25 percent post-consumer content for rigid plastic packaging. \nMicrosoft is committed to meeting and going beyond government standards on take-back and responsible recycling or disposal of electronics, batteries, and packaging. We are a member of more than 145 government-mandated recycling schemes and producer responsibility organizations worldwide. In addition, we also offer several voluntary take-back and recycling programs, including incentives to bring used electronics to Microsoft Stores for recycling. We offer a comprehensive online tool to help consumers understand the recycling options available to them in their specific location. Where no local options exist, consumers can use the tool to contact Microsoft and we will generate a postage-paid e-label for them to use \nto send their equipment to a contracted recycler \nfor free.\nMicrosoft also offers two programs, Microsoft Authorized Refurbisher (MAR) and Microsoft Registered Refurbisher Program (RRP), that help refurbishers extend the life of used PCs by providing them with commercial licenses for Microsoft software and non-profit organization licenses for those serving non-profits and schools. Through these programs, Microsoft and our refurbisher partners provided nonprofits and schools access \nto 746,140 refurbished computers in FY15.\nMicrosoft works to responsibly reuse, refurbish, or recycle used computers and electronics from our own operations and used personal and electronic items from our employees. For our own e-waste and the e-waste we collect from employees and customers, Microsoft requires external certification of the recycling partners that we contract with \nand bans any landfilling or exportation of used electronics that they collect. The recycling partners directly contracted by Microsoft to manage our e-waste and the e-waste we collect from employees and customers must meet stringent specifications. These include a product landfill and export ban. Microsoft also requires the recyclers to be certified by a recognized scheme such as ISO 14001, R2, or E-Steward; conduct assessments of their downstream partners; track the material types and quantities that they process to final disposition; \nand provide a certificate of destruction. Finally, Microsoft forbids the use of prison or other \ninvoluntary labor to staff recycling operations. \nLink_168\ntext_30\nLink_169\ntext_31\nLink_170\ntext_32\nLink_171\ntext_33", "Since July 1, 2012, Microsoft has achieved carbon neutrality across our global operations, spanning more than 100 countries, for our datacenters, \nThis chargeback model puts a price on carbon \nand makes the company’s business divisions responsible for the cost of reducing and compensating for the carbon emissions associated with their electricity use and air travel. The carbon \nfee funds energy efficiency investments, purchasing renewable energy equal to 100 percent of our consumption (with the green power purchases \nin the same markets as our operations wherever possible) and externally certified carbon \noffset projects. \n$10 million a year, and had an impact on more \nthan 3.2 million people in emerging nations through carbon offset community projects. \nBesides our carbon neutrality commitment, we have a 100 percent renewable energy commitment, which we meet through direct purchases of renewable energy and the purchase of renewable energy credits. We currently use directly purchased renewable electricity to power 23 percent of our operations, and are exploring opportunities to expand our direct purchase of renewable energy and support the construction of new renewable energy projects. In FY15 we purchased more than 3.2 billion kilowatt-hours (kWh) of renewable energy, and in January 2015 the US Environmental Protection Agency ranked us as the second-largest user of green power in the US. The new 110-megawatt (MW) Keechi Wind project that we funded through a 20-year agreement to purchase 100 percent of its output came online in FY15, and we also announced an even larger power purchase agreement for all of the output of the new 175-MW Pilot Hill Wind Project. We also generate a small amount of onsite renewable energy, such as from solar panels covering the rooftops on our Silicon Valley campus. Finally, access to renewable energy is among the criteria that we consider in siting datacenters, and a number of our datacenters, like our complex in Quincy, Washington, are powered by hydroelectricity.\nOur last round of carbon-fee funded efficiency projects and other energy-efficiency investments by our Real Estate and Facilities group totaled \nover $3.1 million in investments that reduced our associated carbon emissions by 18,179 metric tons and also paid for themselves in less than a year with $3.6 million in energy savings. Beyond cost savings, we’ve also found opportunities to create new areas of revenue. Microsoft created an \nanalytical software solution that joined together 38,000 assets of disparate, sensor-enabled \nequipment across the 125 buildings in our Puget Sound headquarters. The system processes 500 million data transactions every day to prioritize maintenance and repairs with the greatest \nenergy and cost saving potential. The solution is generating energy savings of 10–11 percent and an implementation payback of less than 24 months. We are now expanding the solution to our other campuses with equally good results: the software identified $240,000 of energy savings at our Mountain View, CA campus within the first 30 days of deployment. We are sharing our results with government and industry leaders from around \nthe globe and making similar solutions available through partners to our customers (such as through Microsoft CityNext offerings). With inefficient commercial buildings responsible f\nor upwards of 40 percent of the world’s energy consumption, we see the huge potential environmental and business impacts from this approach.\nWe’re designing energy-saving approaches into our new datacenters, such as using outside air cooling and airside economizers that dramatically cut the energy and water used for cooling. This approach to cooling reduces energy consumption by 15-20 percent and water consumption by 90 percent. Overall, our datacenters average 1.4 PUE (Power Usage Effectiveness, one measure of data center efficiency), more efficient than the industry average of 1.7 PUE.\nWe are concerned about not just efficiency inside the datacenter, but also how to create dramatically more efficient systems, from the power plant to the chip. Examples of this approach include the pilot project datacenter in Cheyenne, Wyoming, which ran completely independently of the grid from 2014 to 2015 by using energy generated from biogas, a byproduct of a nearby water treatment plant. We’ve also pioneered a new concept to integrate fuel cells directly into server racks, which we expect to effectively cut datacenter energy intensity in half by eliminating transmission losses and other inefficiencies. We are working with industry partners and the DOE to pilot and commercialize new energy technologies that will be foundational to the next generation of efficient datacenter designs. In another step forward in this approach, in FY15 we established a partnership with the University of Texas at San Antonio and the school’s Texas Sustainable Energy Research Institute to identify economically viable technologies that further reduce the environmental footprint of datacenters. Beyond the datacenters themselves, we’re building energy-saving features into our cloud services, such as the ability for developers to automatically scale their resource use to demand. \nLink_172\ntext_34\nLink_173\nLink_174\ntext_35\nLink_175\ntext_36", "Table_1", "TR_1", "TD_7\nTD_8\nTD_9\nTD_10", "Table_11", "TR_11", "TD_67\nTD_68\nTD_69\nTD_70\nTD_71", "Table_3", "TR_3", "TD_25\nTD_26\nTD_27\nTD_28\nTD_29\nTD_30\nTD_31\nTD_32", "Table_10", "TR_10", "TD_62\nTD_63\nTD_64\nTD_65\nTD_66", "Goal: Continuing to review our policies and practices to ensure we are meeting our commitments to human rights and to perform ongoing assessments of the human rights impacts of our operations.\nWe continued our work engaging with a wide range of human rights experts to evaluate our existing human rights commitments and consider the human rights impacts of \nkey business decisions and perform human rights impact \nassessments of focused areas of our business. \nGoal: Continuing to advance human rights trainings \nto targeted internal groups within Microsoft. \n\nGoal: Finalizing a Memorandum of Understanding with \nthe Office of the UN High Commissioner for Human \nRights to enhance its use of technology.\n\nGoal: Advancing awareness of Microsoft’s accessible products and services to meet the needs of K-12 students with disabilities.\nGoal: Supporting and advancing the implementation \nof the UN Convention for the Rights of People \nwith Disabilities.\n\nMicrosoft collaborates with governments, consumers, and organizations to support and advance the implementation \nof the UN Convention for the Rights of People with Disabilities and promote digital inclusion of persons with disabilities in all aspects of development. We regularly partner with organizations such as the Global Initiative for Inclusive Information and Communication Technologies (G3ict), the United Nations Educational, Scientific and Cultural Organization (UNESCO) and the Organization of American States (OAS) to raise awareness of the accessible ICT in countries such as Mexico, India, and South Africa.\n", "LI_35\nLI_36", "Table_4", "TR_4", "TD_33\nTD_34\nTD_35\nTD_36\nTD_37\nTD_38\nTD_39", "We strive to exercise our growth mindset every day in three distinct areas:\nThrough Microsoft’s Global Human Rights Statement and as a signatory to the UN Global Compact, we’re committed to respecting all of \nthe human rights described in the Universal Declaration of Human Rights; the International Covenant on Civil and Political Rights; the \nInternational Covenant on Economic, Social, and Cultural Rights; and the International Labour Organization (ILO) Declaration on Fundamental Principles and Rights at Work. 2\nIn addition, our commitments to communicate respectfully with each other, to provide for \ndiversity and equal employment opportunity \nat all levels of our organization, and to protect \nthe safety and health of our employees are \nincorporated into the Microsoft Standards of \nBusiness Conduct described in the Ethical \nBusiness Conduct and Governance chapter. \nMicrosoft’s global Human Resources team advances our policies and programs to recruit, retain, and develop exceptional people. This team includes groups focused on compensation and benefits, talent and organizational capability, and diversity and inclusion. In addition to a central team, HR professionals are embedded within each group in Microsoft to ensure that every employee has a clear point of contact and support on HR issues, from our executive managers to individual contributors. At the end of FY15, Microsoft employed 117,354 people worldwide.\nIn FY15 we faced the challenge of responsibly managing reductions in our overall workforce of approximately 18,000 positions. This was driven by two goals: work simplification and Nokia Devices and Services integration synergies and strategic alignment. The reductions were spread across many different business units and many different countries. We sought to go through this process with the deepest respect for affected individuals and recognition of their service to the company. We offered severance to all employees, as well as job transition help in many locations. Around the world, we worked to ensure we followed local process and laws in each of the countries affected. \nWe ask for—and act on—employee feedback in multiple ways, including conducting an annual poll of all our employees around the world. Our main annual global employee poll is conducted by a third-party vendor to protect employee anonymity. In FY15, nearly 85 percent of our more than 100,000 employees responded to the poll. The poll asks employees to share feedback about their experience working at Microsoft. Microsoft’s Senior Leadership Team and individual managers use the poll results to further improve on areas of strength and address opportunities for improvement. We supplement the poll with additional quarterly “pulse” polls covering additional issues.", "At the same time, we recognize the need to address our own environmental footprint as \nboth our datacenter operations and hardware offerings grow. Microsoft is pioneering new \nways technology can make our own operations more sustainable. Since 2013, we’ve achieved 100 percent carbon neutrality for our global operations, which includes our datacenters, labs, offices, \nmanufacturing facilities, and business air travel. \nThis commitment was achieved by boosting efficiency, purchasing renewable energy in the markets of our operations equal to 100 percent \nof our energy consumption where available, and conducting a voluntary carbon offset program. \nWe also work hard to ensure sustainability is considered at each state of the lifecycle of our devices, from their design through end of life.\nOur commitment to environmental sustainability spans our company. We seek to advance \nsustainability through the products and platform capabilities we offer our customers and partners, our own business practices, and our global \npartnerships with governments, academics, \nnonprofits, and others. \nMicrosoft has a global corporate environmental strategy team and environmental experts embedded within engineering, supply chain, procurement, research, real estate and facilities, datacenters, and legal and corporate affairs. Their work is governed through executive oversight and is reviewed semi-annually by the Regulatory and Public Policy Committee of our Board of Directors.\nOur environmental strategy includes a corporate carbon neutrality goal as well as goals for specific areas of our business, ranging from datacenter efficiency to energy and waste reduction at \nMicrosoft campuses to the use of recycled content in packaging. Microsoft employees receive the appropriate role-based environmental training and certifications as needed for their jobs, such as training in chemical management for hardware lab employees and design for environment training for packaging engineers. We also promote broad environmental awareness by emailing an annual update on our environmental goals and progress to all Microsoft employees globally. \nCore parts of Microsoft’s operations are \ncertified to the International Organization \nfor Standardization (ISO) 14001 Environmental \nManagement System. This includes our European Operations Center, all Microsoft-owned manufacturing sites and all the contract manufacturing facilities of our Tier 1 hardware suppliers. Microsoft also earned a cross-company, corporate-level \nISO 14001 certification for Microsoft’s hardware and packaging manufacturing supply chain management and operations.\nLink_167\ntext_29", "That future is now brighter. This fall, I visited Latin America to learn how technology is being used to empower people and businesses across the region. In Toluca, Mexico, just outside Mexico City, I saw this firsthand at a YouthSpark-POETA center that offers people from underrepresented backgrounds access to digital literacy, computer science training and mentoring, and resources to seek employment and entrepreneurship opportunities. I met with students and young entrepreneurs who had been inspired to start their own businesses, and in turn apply those learnings to teach others, and it was a profound reminder of the impact we can have \nin the world. \nTo really make a difference, it’s not enough to build great products and services. Living up to our mission also depends on how well we apply our technology, talent and financial resources to foster opportunity and serve the needs of communities around the globe where our employees, partners and customers live. We recognize that our ability to pursue these goals requires that we conduct our business with integrity, with respect for human rights, and in ways that promote environmental sustainability. \nThis report summarizes our work during fiscal year 2015 to meet the high expectations that we have for ourselves and that our customers, communities and other stakeholders have for us. Highlights include our efforts to address climate change through an industry-leading internal carbon fee and new policies designed to ensure that our U.S. suppliers provide paid leave to their employees who handle our work. In addition, in FY15, we made more than $922 million in technology donations to more than 120,000 nonprofit organizations globally, and Microsoft employees contributed $117 million to nearly 20,000 nonprofits through our corporate giving campaign.\nAs I’ve shared with Microsoft employees, I believe we can do amazing things when we come together with a clear mission and a culture that brings \nout the best in us as individuals and collectively. \nMicrosoft’s citizenship commitments help us ensure that what we accomplish together not only advances our business but also ultimately increases the positive impact we have in places like Nanyuki and Toluca and everywhere we do business around the world. \nSincerely,\nSatya Nadella\nChief Executive Officer\nLink_55\ntext\nLink_56\ntext_0\nLink_57\ntext_1", "Link_70\nLink_71\nLink_72\ntext_2\nLink_73\nLink_74\nLink_75\nLink_76\nLink_77\nLink_78\nLink_79\nLink_80\nLink_81", "Table_0", "TR_0", "TD_3\nTD_4\nTD_5\nTD_6", "LI_16", "LBody_42\nLBody_43\nLBody_44\nLBody_45\nLBody_46\nLBody_47\nLBody_48\nLBody_49\nLBody_50\nLBody_51\nLBody_52\nLBody_53\nLBody_54", "Table", "TR", "TD\nTD_0\nTD_1\nTD_2", "of the voting control).\nAll Microsoft employees must complete annual training on our Standards of Business Conduct. The training course is available in 19 languages. \nIn FY15, as in previous years, we achieved a \ncompletion rate for the course of greater than \n99 percent. In addition, a variety of mandatory role-specific trainings address the compliance risks of particular business functions, and Microsoft provides employees with a wide range of additional optional training and guidance to ensure awareness of our policies and expectations for ethical behavior. The following graphic from the Microsoft Standards of Business Conduct reflects our straightforward approach and encourages employees to consult with internal resources \nwhen necessary.\nMicrosoft’s Office of Legal Compliance is responsible for our Business Conduct and Compliance Program, working closely with the rest of Microsoft Legal and Corporate Affairs, Finance, Human Resources, Internal Audit, and other groups focused on ensuring compliance. We have more than 50 people whose primary role is investigating potential breaches of company policy, and an additional 120 people whose primary role is compliance. In addition, we sometimes retain outside law firms to conduct or assist with investigations. This is a reflection of the size and complexity of our business and the seriousness with which we take meeting our obligations.\nAcross Microsoft’s business, we build and monitor internal controls to identify and mitigate risks of unethical and non-compliant conduct, perform regular internal audits, require multiple levels of approval for contracting and expenditures, and maintain internal compliance scorecards that affect key leaders’ performance compensation. Our responsibility is to take steps to train our employees, to build controls to prevent and \ndetect unethical and non-compliant conduct, \nand when we identify or learn of concerns or improper conduct, to investigate them fully \nand take appropriate action to remediate.\nMicrosoft offers employees and external parties multiple ways to report compliance concerns. These include the following:\nPreventing retaliation is critical to the Business Conduct and Compliance Program. Microsoft maintains and communicates an open-door p\nolicy and strictly prohibits retaliation against complainants who raise a compliance concern in good faith. Microsoft is committed to handling all inquiries discreetly and preserving the confidentiality of anyone requesting guidance or reporting \na possible violation to the extent possible and within the limits allowed by the laws.\nBeyond clearly communicating our expectations, Microsoft vets third-party representatives and certain suppliers to help ensure that we only engage those that are legitimate businesses with a reputation for integrity. We conducted a risk assessment to identify higher-risk representative types, which were then vetted along with many other lower-risk representative types. This includes channel partners, consultants, lobbyists, and other third parties engaged by Microsoft and its subsidiaries and joint ventures worldwide. In addition, we continue to have third-party reviews conducted for all new suppliers. Since the vetting program’s inception, Microsoft has screened nearly 100,000 representatives and suppliers to enable Microsoft to monitor the risk profile and drive risk mitigation efforts accordingly.\nLink_116\ntext_6\nLink_117\ntext_7", "Table_16", "TR_16", "TD_117\nTD_118\nTD_119\nTD_120\nTD_121\nTD_122", "Link_84\nLink_85\nLink_86\nLink_87\nLink_88\nLink_89\nLink_90\nLink_91\nLink_92\nLink_93\nLink_94", "LBody_115\nLBody_116\nLBody_117\nLBody_118\nLBody_119\nLBody_120\nLBody_121\nLBody_122\nLBody_123\nLBody_124\nLBody_125", "Stakeholder Engagement \nCitizenship Materiality Assessment\nAbout This Report\nLink_61\nLink_62\nLink_63\nLink_64\nLink_65\nLink_66\nLink_67", "LI_4", "LBody_10\nLBody_11\nLBody_12\nLBody_13\nLBody_14\nLBody_15\nLBody_16\nLBody_17\nLBody_18\nLBody_19", "Microsoft’s Supplier Code of Conduct and SEA requirements are incorporated into our contracts with Tier 1 suppliers that manufacture our hardware components and products, and strategic Tier 2 suppliers and other suppliers contracted by \nMicrosoft to provide components and/or materials to our Tier 1 suppliers. We also require these suppliers to address the SEA requirements with their own upstream and downstream suppliers with which Microsoft does not contract directly. Microsoft’s factory and sourcing managers partner with our SEA team of experts to ensure that Microsoft’s labor rights, ethics, environment, occupational health, and safety requirements are met.\nWe raise the performance bar with our existing suppliers while onboarding new suppliers. All new and directly contracted hardware and packaging suppliers undergo initial risk assessments and initial capability assessments and audits. A combination of third-party auditors and/or members of Microsoft’s SEA team conduct these audits and assessments using a checklist composed of the Electronics Industry Citizenship Coalition (EICC) requirements and additional Microsoft requirements on labor, environmental protection, ethics, worker health and safety, and management systems. During the review process, auditors examine documentation; visit production lines, dorms, canteens, and waste storage facilities; and conduct face-to-face \ninterviews of workers and factory management. \nTo ensure consistency and quality of third-party audits, Microsoft pre-qualifies third-party auditors through shadow audits and assessments of their onsite audit performance and reports.\nAfter the initial baseline assessment, the SEA \nteam monitors the performance of all directly contracted suppliers. Third-party auditors audit SEA conformance with our Tier 1 suppliers annually and our Tier 2 suppliers based on their risk level. Microsoft’s SEA team supplements these third-party audits with regular onsite assessments of Tier 1 factories and high- and medium-risk \nTier 2 component suppliers. \nIn cases when nonconformances are detected, our SEA team works closely with suppliers to develop corrective action plans to resolve detected issues, including building needed capabilities through education and training. Suppliers are required \nto identify the root cause, establish a corrective course of action, and implement preventive actions for all issues found. Suppliers must \ncorrect issues within specific deadlines based \non the severity of the nonconformance or risk termination of our business.\nBeyond auditing, learning directly from workers is a key priority. In FY14, we launched an anonymous and factory-independent worker grievance hotline pilot project. This program continued to scale and increase in quality and efficiency in FY15, though \na new partnership with China Labor Support Network. In its first year of operation, we rolled \nout the hotline in five Tier 1 factories and one \nTier 2 factory. The hotline launch included worker orientations to encourage use of the hotline and \nto encourage factory management to consider \nthe hotline as a resource for workplace labor and environment, health, and safety issues. In its first year of operation, the hotline received a total of \n232 inquiries. The three most frequent topics were related to wages and benefits, factory procedure and policy, and living conditions. Starting in FY16, we will make this hotline available to the rest of our Tier 1 suppliers in China and select Tier 2 suppliers.\nIn FY15, we completed 314 third-party audits and Microsoft assessments of 138 suppliers. These audits and assessments continue to provide us with insight into the needs and challenges of our supply chain and guide our investments in supplier capability and future improvements. \nIn this report, we disclose all findings of critical/serious nonconformance with our SEA requirements. These critical/serious findings were escalated to Microsoft senior management, and the suppliers were placed on restricted status with no new Microsoft business awarded until the issues were resolved. In all instances, the suppliers instituted corrective action plans that were approved by Microsoft and follow-up audits confirmed that the suppliers were implementing the corrective action plans.\nIn the following SEA Audit and Assessment Results table, we provide year-over-year data on findings \nof critical/serious nonconformance with the requirements covered in these audits and assessments.\nChanges in the number of audits and assessments conducted each year and the scope of those audits cause fluctuations in year-over-year \ncomparisons. In addition, we are always learning during the course of our work, which results in improvements to our program and can increase findings. Nonetheless, to better facilitate comparisons going forward, this year we also report nonconformance percentages of suppliers audited in addition to reporting total findings. \nWe typically see improvements in performance after working with suppliers on an ongoing basis on previously addressed issues. For the first time, this year we also broke out findings by new and existing suppliers. New suppliers are those new \nto the Microsoft Device Supply Chain and audited for the first time, while existing suppliers are those which received audits and assessments in the past. While informative, we emphasize that the percentages are affected by our raising the bar on supplier performance year over year and enhancement of audit quality and auditor requirements.", "We promoted awareness of our human rights \ncommitments to employees broadly across Microsoft \nand with targeted required trainings for our sales \nfield and key sourcing professionals.\nWe finalized this memorandum of understanding and are moving forward with implementation to help the Office of the UN High Commissioner for Human Rights to enhance \nits use of technology.\nMicrosoft supports inclusive education policies that ensure accessible and assistive technologies are made available \nto students with disabilities throughout their education system and teachers are trained and supported \nin their implementation.", "We apply risk-based approaches for the responsible management of all of our suppliers, with a particular focus on suppliers of products and services that directly touch our customers, such \nas Microsoft-branded hardware devices and packaging and outsourced customer service and support. We also work collaboratively with our suppliers on proactive initiatives that create value for their employees, the communities in which \nthey operate, and their own businesses.\nWithin Microsoft, two groups work to ensure \nthat our social, ethical, environmental, health, \nand safety requirements for suppliers are met. Microsoft’s Device and Supply Chain Group \n(DSC) established its Social and Environmental Accountability (SEA) Program in 2005 to ensure that our hardware and packaging suppliers conform to our Supplier Code of Conduct and additional hardware-related requirements for living conditions, safe working practices, and environmental, health, and safety protection. Microsoft’s Global Procurement Group, which manages Microsoft’s spending with indirect (that is, non-hardware) suppliers, created a new management function in 2013 to consolidate and enhance responsible sourcing activities based on learnings and best practices from the SEA Program. Together, these two programs promote capacity-building and establish proactive partnerships with suppliers, and embed social and \nenvironmental criteria into Microsoft’s core \npurchasing and sourcing decisions.", "We use a variety of other methods to engage \nwith our shareholders. Over the past year, \nindependent members of our board and members of senior management conducted outreach to a cross-section of shareholders owning approximately 40 percent of outstanding shares. Senior members of our management team also speak with our shareholders and provide the feedback received directly to our board. Our CEO, Satya Nadella, remains committed to investing time with our shareholders to increase transparency and better understand their perspectives, including by participating in our quarterly earnings calls.\nThe following diagram shows our annual outreach efforts and corporate governance cycle.\nLink_119\ntext_9\nLink_120\ntext_10", "Goal: Engaging in cross-industry forums to help us identify and contribute to the development of best practices.\nIn FY15, Microsoft’s Anti-Corruption Program Management Office helped lead the US Technical Advisory Group to create and represent the US position in the development of the proposed International Standards Organization (ISO) Anti-Bribery Standard, through the American National Standards Institute (ANSI). The standard, once finalized and published, will help prevent corruption by enabling companies to consistently create and evaluate anti-bribery programs, identify and remediate areas for improvement, and demonstrate program effectiveness. Microsoft is also engaged in promoting anti-corruption initiatives among intergovernmental organizations and multinational companies through Microsoft’s membership in the World Economic Forum Partnership Against Corruption Initiative (PACI) as an industry partner. \n\nFY15 marked an especially active year for proactively consulting with institutional investors and other shareholders in the wake of leadership changes. We sought feedback and input from a broad range of our investors, including public pension funds and leaders among the growing number of institutional investors focused on environmental, social, and governance issues. With the publication of our 2015 Citizenship Report, we also launched a new Transparency Hub to make it easier for stakeholders to quickly access and understand our broad range of citizenship-related disclosures.\n\nGoal: Continuing to enhance our corporate governance principles and policies to serve the interests of our \nshareholders and other stakeholders. \nWe expect the Securities and Exchange Commission to continue to adopt regulations mandated by the Dodd-Frank Act. These include disclosure of pay ratios, pay for performance, hedging, and executive compensation recovery. We previously implemented polices relating to hedging and executive compensation recovery and will monitor and implement any further requirements in these areas. We also filed our second annual Conflict Minerals Report in compliance with regulations called for under Dodd-Frank.\nLink_123\ntext_13", "To help close the opportunity gap for millions of youth around the world, Microsoft YouthSpark provides philanthropic contributions to more than 400 youth-serving nonprofit organizations in more than 100 countries spanning the globe, including: \nSkype in the Classroom creates a free, global \ncommunity for teachers to connect their students with other students and guest speakers from around the world.\nTechnology Education and Literacy in Schools (TEALS) pairs computer science professionals with classroom teachers to teach computer science in high schools across the country, either in-person or via Skype. Started in 2009 by a Microsoft employee who developed and ran the program in his spare time, TEALS was embraced and adopted by Microsoft in 2011. Doubling in size every year, in the 2014–2015 school year TEALS reached 6,000 students in 131 schools in 18 states, and to date has helped teach more than 12,500 high school students introductory or advanced placement (AP) computer science with an industry-recognized curriculum developed by the University of California at Berkeley and the University of Washington. TEALS recruits volunteer technology professionals from Microsoft and across the industry. \nMicrosoft Imagine connects aspiring student developers of all skill levels with the tools, resources, and experiences they need to turn their innovative ideas into reality, whether it’s building a game, designing an app, or launching a project. Imagine includes the Imagine Cup, Microsoft’s global youth technology competition, which challenges students to apply their knowledge and passion to develop technical solutions for social impact, engaging games, and driving innovation.\nIn developing Microsoft YouthSpark, we consulted with government, nonprofit, and business leaders globally to understand the challenges young people face in building their lives and contributing to their communities. This work highlighted the need to go beyond addressing the “digital divide” and to take a more holistic approach to address the opportunity divide—the gap between those who have the skills, access, and opportunities to \nbe successful and those who do not.\nAs we reflect on our learnings and develop-\nments during our first three years implementing \nYouthSpark, going forward, we are focusing YouthSpark on creating opportunities for all \nyouth to learn computing—with a top priority on increasing access for all youth to computer science education on a global scale. As technology has become an integral part of people’s daily lives in nearly all regions of the world, we’re seeing a growing demand—from students, parents, teachers, governments, and nonprofits—to teach youth not only how to use technology, but also how to create technology and become the innovators \nand drivers of growth and opportunity in their communities. \nThe goal of computer science education is not, necessarily, for everyone to become a computer scientist or a software engineer. We believe that all young people should have access to computer science education so they can learn this foundational subject matter and develop the computational thinking skills that will be critical for their future. In the coming years we will focus our YouthSpark philanthropy, youth programs, and policy advocacy to advancing this cause.", "Nonprofit Partners\nOffice 365 for Education\nMicrosoft Office 365 is free for all students and teachers around the world and provides ready access to technology tools that power learning and collaboration: email, instant messaging, \ngroup video and voice chat, and online \ndocument viewing and editing.\nSkype in the Classroom\nMicrosoft Digital Literacy Curriculum\nMicrosoft’s free online Digital Literacy curriculum \nis available in 10 languages that together are spoken by more than half the world’s population. The user friendly curriculum spans a broad range of technology skills at Basic, Standard, and Advanced levels. \nComputer Science Education—TEALS\nMicrosoft Imagine", "We’ve led our industry with privacy protections such as our commitment to not scan Microsoft Outlook or other email services for purposes of targeting online advertising. In October 2014, Microsoft became one of the first companies to sign the Student Privacy Pledge developed by the Future of Privacy Forum and the Software amp; Information Industry Association to establish a common set of principles to protect the privacy \nof student information.\nOur privacy protections have gained external recognition. Microsoft is the first major cloud provider to adopt—and gain independent \nverification for meeting—the world’s first \ninternational standard for cloud privacy, the ISO/IEC 27018 standard developed by the International Organization for Standardization to establish a uniform, international approach to protecting privacy for personal data stored in the cloud. \nThis builds on past efforts: in April 2014 we received confirmation from European data \nprotection authorities that Microsoft’s enterprise cloud contracts are in line with “model clauses” under EU privacy laws regarding the international transfer of data, becoming the first company to receive such recognition. \nWith ongoing concerns about government \nsurveillance practices over the past several years, Microsoft has categorically stated that we do not provide any government with direct and unfettered access to our customers’ data, and we \ndon’t provide any back doors. As we’ve publicly disclosed, if a government wants our customers’ data, it must serve us with the appropriate warrant, court order, or subpoena targeted at specific accounts and identifiers. We reject requests that don’t meet these requirements, and we only provide the data specified in the legal order. Measures we’ve taken over the past two years \nto ensure we continue to meet our commitments to data privacy and security and earn customers’ trust include expanding our use of encryption across our services, providing choice and transparency on data location, and strengthening legal protections for customers. \nMicrosoft has also worked to champion our view that while technology has a critical role itself in protecting people’s rights and keeping people safe, technology and the Internet must be governed by law. To that end, both on our own and in collaboration with others in our industry, Microsoft is pushing for reform in government surveillance practices. We fought for and won the right to increase our disclosure on the volume of national security orders for customer data we receive from the US government. We’ve very publicly advocated that governments need to create a new international legal framework to ensure that governments seek information about the private citizens of other participating countries only pursuant to legal rules and due process. \nThroughout FY15, we engaged in an ongoing legal challenge to the US government’s attempt to mandate that we turn over a customer’s email content stored in our datacenter located in Ireland. We have gained support from more than two dozen leading technology and media companies to argue that digital information must be afforded the same legal protections as physical documents and correspondence. Beyond addressing this specific case, we have also advocated about the ways to best protect privacy, ensure that governments keep people safe, and respect national sovereignty while preserving the global nature of the Internet.\nTo help inform the public debate about the best ways to balance privacy and security and in keeping with our longstanding commitment to transparency, we publish a semi-annual Law Enforcement Requests Report and clearly outline our well-documented practices for responding to government demands for customer data. The report includes the number of demands we receive and the number of accounts or identifiers that may be affected by these demands. We also provide details on the number of demands we complied with and, if we complied, whether we provided content or non-content data. In addition, as a result of a concerted effort by Microsoft and our industry partners, we are now permitted to publish data about the number of legal demands we receive from the US government pursuant to national security laws. \nLink_147\ntext_20", "NormalParagraphStyle_436\nNormalParagraphStyle_437\nNormalParagraphStyle_438\nNormalParagraphStyle_439\nNormalParagraphStyle_440\nNormalParagraphStyle_441\nNormalParagraphStyle_442", "Table_15", "TR_15", "TD_115\nTD_116", "Training Resources\nWe created a training platform called SEA Academy that includes labor, ethics, environmental, health, and safety (EHamp;S) training course modules for suppliers. In FY15, we also conducted trainings for 504 trainees from our high-risk suppliers. The courses are also designed as a “train the trainer” with project management training to complement the expert content and provide tools on how to successfully improve their factories. \nHealth and Safety Programs\nWe worked with factory management to emphasize the need to use competent and experienced EHamp;S professionals to define and implement the programs necessary to build a culture of health and safety. To address this, we piloted a number of training modules in our Tier 1 and high-risk Tier 2 suppliers, including: \nInjury Data Tracking\nWe track key health and safety performance indicators for our Tier 1 factories using standard OSHA metrics. In FY15, our Tier 1 suppliers averaged a work-related injuries and illness rate of 0.045 versus an industry benchmark of 1.4, and a lost working-hour accident rate of 0.031 versus an industry benchmark of 0.7.\nKey Tier 2 Supplier Improvement Program\nIn FY14, to address the growing need for additional capacity building among some Tier 2 suppliers, we launched a new program to provide targeted component suppliers with onsite consulting from the SEA program team. We also continued our program to target our lowest performing component suppliers with special additional inspections that include Microsoft executives as well as SEA \nand Sourcing team members. This subset of \nsuppliers face an additional compliance scorecard and must improve their performance within a quarter. Additional time may be given in certain occasions that are justified and approved by the SEA team. As a result of the close engagement and collaboration with suppliers to make improvements identified during these audits and assessments, factory and worker conditions have advanced at many of our suppliers. Suppliers who failed to meet the requirements are subject to phase-out and termination of business with Microsoft.", "Microsoft screens our indirect (that is, non-hardware) suppliers on an ongoing basis against 23 different ethical, social, and environmental risks by country and by commodity category, and applies assurance requirements for suppliers found to pose the highest risks. Among these, we have dedicated supplier training and assurance programs related to anti-corruption and privacy and security.\nFor our top strategic suppliers, our Responsible Sourcing program monitors compliance with our Supplier Code of Conduct through quarterly scorecards that are integrated into their business dashboards and review. For our suppliers of products and services that directly touch our customers (for example, our outsourced customer service \nand support) the program ensures compliance through onsite assessments. These suppliers \nalso face additional Responsible Sourcing \nFinally, another significant requirement launched in FY15 and being rolled out into FY16 involves new procurement standards to ensure that a wide variety of suppliers that do business with Microsoft in the US provide their employees who handle \nour work with at least 15 days of paid leave each year. We believe we were the first large company to take this approach, and we gained significant attention for the move from the media, policymakers, and other companies. We are working to be thoughtful to ensure the changes don’t undermine the breadth and diversity of our suppliers as we implement the new requirement.\nLink_158\ntext_26", "Through oversight, review, and counsel, Microsoft’s Board of Directors establishes and promotes Microsoft’s business and organizational objectives. The board oversees the company’s business affairs and integrity, works with management to determine the company’s mission and long-term strategy, performs the annual CEO evaluation, oversees CEO succession planning, establishes internal control over financial reporting, and assesses company risks and strategies for risk mitigation.\nThe board routinely reviews evolving practices to determine those that will best serve the interests of our shareholders. Microsoft is a leader in \nadopting standards to increase accountability to our shareholders, including early adoption of majority voting for board directors, Say on Pay advisory votes on executive compensation, and most recently, a proxy access bylaw. \nMicrosoft’s Board of Directors maintains four standing committees to assist it in discharging its oversight responsibilities: an Audit Committee, a Compensation Committee, a Governance and Nominating Committee, and a Regulatory and Public Policy Committee. Only independent directors serve on these committees. Each committee has duties assigned by the board in compliance with Microsoft’s Bylaws and committee charters, which are available online. \nAmong the responsibilities of the Regulatory \nand Public Policy Committee is reviewing and \nproviding guidance to the Board and management about the Company’s policies and programs that relate to corporate citizenship, including human rights, environmental sustainability, \ncorporate social responsibility, supply chain \nmanagement, charitable giving, and political \nactivities and expenditures.", "LI_14", "LBody_33\nLBody_34\nLBody_35\nLBody_36\nLBody_37\nLBody_38", "In addition to these investments, we are also broadening the spectrum of diverse talent sources, including deepening our commitment and investment in hiring people with disabilities. We recently invested in a new pilot program focused on hiring people with autism for full-time, Redmond-based Microsoft positions. We developed this pilot in partnership with Specialisterne, a social enterprise run by the Specialist People Foundation, which works to enable one million jobs for people with autism and similar challenges through social \nentrepreneurship, corporate sector engagement, and a global change in mind-set. \nMicrosoft is also working to help diversify non-STEM fields as well, such as the legal profession. In 2015 Microsoft partnered with other companies and law firms to launch the Gregoire Fellows Program in partnership with the University of Washington School of Law, to bring greater \ndiversity to the school and improve the pipeline \nof diverse students to Washington state. \nThe Fellows will receive summer internships, \nmentoring throughout their time in law school, and a scholarship to study for the bar.\nWhen it is all said and done, having a diverse \nworkforce—one that is a reflection of the richness of the customers around the world who buy our products, services, and technologies—is critical to our long-term business success. Our goal is to use diversity and inclusion to build products that \ncustomers need, choose, and love.\nOur product development processes are evolving to become more inclusive and accessible than \never before. We have programs such as our annual \nAbility Summit and new Inclusive Design initiative that serve to enable more innovative and accessible products. Through these efforts, accessibility \nfeatures and settings are built into Microsoft \nsoftware programs. We have made significant \nRamp;D investments in accessible technology, \nincluding speech processing (for hard of hearing), \nspeech synthesis (for speech impairment), \neye-operated assistive technology and advanced wheelchairs (for ALS), and directional audio (for guide dogs).\nOur Employee Resource Groups (ERG) represent many different segments of our population and serve as outreach mechanisms between diverse communities and Microsoft as a whole. These groups help support important business initiatives—from recruiting and retention to the marketing of Microsoft products and services. \nWe work closely with our ERGs and Employee \nNetworks to help make sure that the products \nthat we’re creating actually work for the \npopulations they represent.\nLink_130\ntext_15", "Table_6", "TR_6", "TD_46\nTD_47\nTD_48\nTD_49", "Table_7", "TR_7", "TD_50\nTD_51\nTD_52\nTD_53", "Table_8", "TR_8", "TD_54\nTD_55\nTD_56\nTD_57", "Table_9", "TR_9", "TD_58\nTD_59\nTD_60\nTD_61", "LI_19", "LBody_61\nLBody_62\nLBody_63\nLBody_64\nLBody_65\nLBody_66\nLBody_67", "Since endorsing the UN Global Compact in 2006, Microsoft has had a formal commitment to \nrespecting all of the human rights enumerated \nin the Universal Declaration of Human Rights; International Covenant on Civil and Political \nRights; International Covenant on Economic, \nSocial and Cultural Rights; and ILO Declaration \non Fundamental Principles and Rights at Work. Across our business we have a wide range of policies, practices, and programs that relate to human rights, including data privacy and security, free expression, labor rights in our workforce and our supply chain, and equality and diversity.\nOur human rights commitments are incorporated into our Standards of Business Conduct, which \nall employees receive and for which they must complete training (as described in depth in the Ethical Business Conduct and Governance chapter). Our human rights commitments are \nalso highlighted in a range of role-specific trainings tailored to particular business functions. \nAs our Global Human Rights Statement articulates, we regularly review and strengthen anonymous grievance reporting mechanisms that allow our employees and others affected by our operations to report suspected incidents of human rights abuse. We investigate and, where appropriate, take remedial action to address reported violations. The mechanisms take multiple channels, ranging from our Standards of Business Conduct hotline described in the Ethics and Business Compliance chapter to private communications we have with human rights defenders, such as Freedom House, that work with us to disable user accounts that have been compromised by political regimes conducting human rights abuses. \nSince 2013, the Microsoft Technology and \nHuman Rights Center has worked to prioritize \nand coordinate human rights due diligence, identify emerging risks and opportunities related to human rights, and promote harmonized approaches to human rights across Microsoft. The Center also works to foster dialogue to advance understanding of the human rights impacts of information and communications technology (ICT). Through the Center, Microsoft engages with a broad range of human rights groups, academics, and industry groups globally to share Microsoft’s experiences and lessons learned. Among its activities in FY15, the Center has:\nLink_146\ntext_19", "NormalParagraphStyle_298\nNormalParagraphStyle_299\nNormalParagraphStyle_300\nNormalParagraphStyle_301\nNormalParagraphStyle_302\nNormalParagraphStyle_303\nNormalParagraphStyle_304", "NormalParagraphStyle_305\nNormalParagraphStyle_306\nNormalParagraphStyle_307\nNormalParagraphStyle_308\nNormalParagraphStyle_309\nNormalParagraphStyle_310\nNormalParagraphStyle_311", "NormalParagraphStyle_323\nNormalParagraphStyle_324\nNormalParagraphStyle_325\nNormalParagraphStyle_326\nNormalParagraphStyle_327\nNormalParagraphStyle_328\nNormalParagraphStyle_329", "NormalParagraphStyle_330\nNormalParagraphStyle_331\nNormalParagraphStyle_332\nNormalParagraphStyle_333\nNormalParagraphStyle_334\nNormalParagraphStyle_335\nNormalParagraphStyle_336", "NormalParagraphStyle_337\nNormalParagraphStyle_338\nNormalParagraphStyle_339\nNormalParagraphStyle_340\nNormalParagraphStyle_341\nNormalParagraphStyle_342\nNormalParagraphStyle_343", 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"NormalParagraphStyle_398\nNormalParagraphStyle_399\nNormalParagraphStyle_400\nNormalParagraphStyle_401\nNormalParagraphStyle_402\nNormalParagraphStyle_403\nNormalParagraphStyle_404", "NormalParagraphStyle_443\nNormalParagraphStyle_444\nNormalParagraphStyle_445\nNormalParagraphStyle_446\nNormalParagraphStyle_447\nNormalParagraphStyle_448\nNormalParagraphStyle_449", "NormalParagraphStyle_450\nNormalParagraphStyle_451\nNormalParagraphStyle_452\nNormalParagraphStyle_453\nNormalParagraphStyle_454\nNormalParagraphStyle_455\nNormalParagraphStyle_456", "NormalParagraphStyle_457\nNormalParagraphStyle_458\nNormalParagraphStyle_459\nNormalParagraphStyle_460\nNormalParagraphStyle_461\nNormalParagraphStyle_462\nNormalParagraphStyle_463", "NormalParagraphStyle_464\nNormalParagraphStyle_465\nNormalParagraphStyle_466\nNormalParagraphStyle_467\nNormalParagraphStyle_468\nNormalParagraphStyle_469\nNormalParagraphStyle_470", "NormalParagraphStyle_471\nNormalParagraphStyle_472\nNormalParagraphStyle_473\nNormalParagraphStyle_474\nNormalParagraphStyle_475\nNormalParagraphStyle_476\nNormalParagraphStyle_477", "NormalParagraphStyle_478\nNormalParagraphStyle_479\nNormalParagraphStyle_480\nNormalParagraphStyle_481\nNormalParagraphStyle_482\nNormalParagraphStyle_483\nNormalParagraphStyle_484", "NormalParagraphStyle_486\nNormalParagraphStyle_487\nNormalParagraphStyle_488\nNormalParagraphStyle_489\nNormalParagraphStyle_490\nNormalParagraphStyle_491\nNormalParagraphStyle_492", "NormalParagraphStyle_493\nNormalParagraphStyle_494\nNormalParagraphStyle_495\nNormalParagraphStyle_496\nNormalParagraphStyle_497\nNormalParagraphStyle_498\nNormalParagraphStyle_499", "NormalParagraphStyle_500\nNormalParagraphStyle_501\nNormalParagraphStyle_502\nNormalParagraphStyle_503\nNormalParagraphStyle_504\nNormalParagraphStyle_505\nNormalParagraphStyle_506", "NormalParagraphStyle_507\nNormalParagraphStyle_508\nNormalParagraphStyle_509\nNormalParagraphStyle_510\nNormalParagraphStyle_511\nNormalParagraphStyle_512\nNormalParagraphStyle_513", "NormalParagraphStyle_514\nNormalParagraphStyle_515\nNormalParagraphStyle_516\nNormalParagraphStyle_517\nNormalParagraphStyle_518\nNormalParagraphStyle_519\nNormalParagraphStyle_520", "NormalParagraphStyle_521\nNormalParagraphStyle_522\nNormalParagraphStyle_523\nNormalParagraphStyle_524\nNormalParagraphStyle_525\nNormalParagraphStyle_526\nNormalParagraphStyle_527", "NormalParagraphStyle_528\nNormalParagraphStyle_529\nNormalParagraphStyle_530\nNormalParagraphStyle_531\nNormalParagraphStyle_532\nNormalParagraphStyle_533\nNormalParagraphStyle_534", "NormalParagraphStyle_535\nNormalParagraphStyle_536\nNormalParagraphStyle_537\nNormalParagraphStyle_538\nNormalParagraphStyle_539\nNormalParagraphStyle_540\nNormalParagraphStyle_541", "Footnotes_Small", "9\tNumber of instances found of critical/serious non-conformances by third-party audits and Microsoft SEA assessments (which are both based on the EICC audit protocols with additional Microsoft requirements).\n10\tPercentage represents number of the suppliers with critical/serious findings on each issue out of the base of 138 suppliers audited.\n11\tThe two cases are related to student workers, whose original ID cards were kept by their teacher.\n12\tExamples of these nine nonconformances include two child labor issues and seven issues of student workers working overtime. Neither child labor nonconformance found underage workers in the factory: one found evidence of past underage workers and one found insufficient documentation of legal proof of age. In both cases, the factories instituted new procedures for verifying and documenting proof of age to prevent hiring underage workers.\n13\tThe case is related to incomplete and inaccurate attendance records of workers.\n14\tExamples of the cases involved factories not paying sufficient overtime compensation according to the local minimum wage.\n15\tThis case is for requiring a pregnancy test for female workers during the onboarding health examination.", "We exercise due diligence across our supply chain through a material tracing process that allows us to immediately identify the constituent substances used in our products and trace them back to their associated suppliers. Beyond our own supply \nchain due diligence, we have now moved our collaborative efforts to the upstream mining industry, through direct participation in and support of the Initiative for Responsible Mining Assurance, Pact, and the Alliance for Responsible Mining, to holistically cover end-to-end mining sustainability, from artisanal to larger mining enterprises. It is our intention that these initiatives eventually will enable our suppliers to purchase responsibly sourced materials for use in our products and address important challenges for \nthe supply chains dependent upon the use of metals, ranging from underage labor to environmental degradation. On the specific issue of tin originating from Indonesia, Microsoft is also a member of the IDH Tin Working Group, which brings together a range of stakeholders seeking \nto address the social and environmental issues related to tin mining.\nIn another example, we have collaborated with \nour suppliers and other hardware companies since 2007 to address conflict minerals from the eastern DRC. Our suppliers must not knowingly use minerals that are not DRC conflict-free and we expect our suppliers to engage in similarly robust due diligence activities. We provide a detailed discussion of our conflict minerals due diligence process and findings in our June 2015 Conflict Minerals Report filed with the US Securities and Exchange Commission under requirements of \nthe Dodd-Frank Act. Microsoft’s report has been cited for its leadership in transparency with the disclosure of as much smelter-level and country-of-origin data as we have available. As with our broader efforts on mining sustainability, we believe that collaborative partnerships are most effective in addressing conflict minerals. \nMeaningful progress related to conflict minerals is reflected in our Conflict Minerals Report filed with the US Securities and Exchange Commission in June 2015. The number of conflict-free smelters in our supply chain increased from 80 to 148, due to the integration of Nokia’s Devices and Services Group, supplier outreach, and the maturation of the Conflict Free Smelter Program (CFSP), of which we were an original participant and remain a strong supporter. In addition, in spring 2015 we passed a significant milestone with all tantalum smelters identified in the Microsoft supply chain validated as conflict-free. We strengthened our supplier audit process to improve due diligence, developed new controls to standardize supplier reports, and initiated third-party assistance to help smelters prepare for CFSP validation. \nWe also have supported the Conflict Free Smelter Initiative (CFSI) since its inception in 2010 and donated to the initial audit fund to make it easier for smelters to become certified through CFSI’s Conflict Free Smelter Program.\nWe support several other organizations \npromoting responsible mining and an end \nto conflict in and around the DRC, including the Public-Private Alliance for Responsible Minerals Trade and the Responsible Sourcing Network’s Multi-Stakeholder Group. \nLink_157\ntext_25", "LI_43\nLI_44\nLI_45", "Goal: Maintaining our commitment to achieving carbon neutrality and net-zero emissions for our datacenters, software development labs, offices, and employee air travel by increasing energy efficiency and investing in renewable energy and carbon offset projects.\nGoal: Establishing targets with business groups to improve operational energy efficiency.\nGoal: Building on the model of our 110-MW Keechi Wind power purchase agreement with additional large-scale commitments to purchase renewable energy.\nBeyond our Keechi Wind power purchase agreement, in \nFY15 we signed a 60 percent larger wind power purchase agreement to catalyze development of the new Pilot Hill Wind Power Project.\nGoal: Meeting our 100 percent renewable energy commitment by matching the total amount of kWh consumed with the equivalent volume of renewable energy purchased.\nGoal: Expanding our global data collection and reporting of waste and water data.", "Link_96\nLink_97\nLink_98\nLink_99\nLink_100\nLink_101", "Our products include operating systems for computing devices, servers, phones, and other intelligent devices; server applications for distributed computing environments; cross-device productivity applications; business solution \napplications; desktop and server management tools; software development tools; video games; and online advertising. We also design and sell hardware including PCs, tablets, gaming and entertainment consoles, phones, other intelligent devices, and related accessories. We offer cloud-based solutions that provide customers with software, services, platforms, and content. \nWe also provide consulting and product and solution support services, and we train and certify computer system integrators and developers.\nAs of June 30, 2015, we employed approximately 118,000 people on a full-time basis, 60,000 in the United States and 58,000 internationally. Of the total employed people, 39,000 were in product research and development, 29,000 in sales \nand marketing, 32,000 in product support and consulting services, 8,000 in manufacturing and distribution, and 10,000 in general and administration. We develop most of our products and services internally through three engineering groups.\nDuring FY15, our research and development expense was US $12.0 billion, 13 percent of revenue. To carry out our strategy, our research and development efforts focus on three interconnected ambitions:\nIn addition to our main research and development operations, we also operate Microsoft Research. Microsoft Research is one of the world’s largest computer science research organizations, and works in close collaboration with top universities around the world to advance the state of the art \nin computer science, providing us a unique \nperspective on future technology trends and contributing to our innovation.\nDetailed, updated information about Microsoft’s business, operations, and workforce is \nLink_107", "LI_0\nLI_1\nLI_2\nLI_3", "Stock-based compensation is a key component of our rewards programs at Microsoft as it provides an ownership stake in the company’s success. Over 85 percent of Microsoft employees are eligible for an annual stock award. In addition, 90 percent of Microsoft’s employees are eligible for a cash bonus. Bonuses focus on an individual’s business impact over the past year.\nWe offer a wide assortment of flexible benefits. Due to local law, local conditions, and employee preferences, some benefits vary by location, but following is a representative sample of the array of benefits we offer:\n\nWe know that Microsoft, like the rest of the tech industry, must do more to fully reflect the diversity of the global population. As a result, this past fiscal year, we’ve put renewed focus and thought into advancing the diversity and inclusion agenda within the company. We developed and rolled out key priorities, resulting in our FY16 Global Diversity and Inclusion Strategy, which was reviewed and approved by our Board of Directors. This new strategy has four specific areas of focus: transforming the culture, empowering our people, expanding our talent pipeline, and delighting \nour customers.\nMaximizing the contribution of every individual allows us to infuse diverse thought as a natural part of the way we innovate. With that in mind, \nwe value accountability and learning as key ingredients to nurturing an inclusive culture. \nOur clearest sign of investment and commitment towards creating a more inclusive culture is the recent launch of a new mandatory company-wide online Unconscious Bias training. From our experience and the advice of industry experts, we identified the importance of recognizing and changing unconscious biases in the workplace as one of the key actions that will help us to modify mindset and behavior. Demonstrating leadership support for this training, our CEO Satya Nadella and his senior leadership team, along with their direct reports, participated in dedicated learning sessions and also conducted strategic planning \non the business benefits of diversity. \nTo ensure that completing this training is not a “check the box” exercise, we have created inclusive leader, manager, and employee learning paths to build on the training and other new programs that will advance our collective diversity and inclusion acumen. These interactive programs include the extension of the Unconscious Bias training using a live case study format that focuses on real-life, role-play opportunities to examine and understand unconscious biases that may shape communication style, decision making, and behaviors. \nMore broadly, we are committed to integrating diversity and inclusion principles into meaningful aspects of all that we do: from our hiring processes to our pursuit of innovation in how we build products and technology—to the way we \ncommunicate with and reward our people. \nWe’ve already started this integration with \ncompany-wide employee events such as our annual Hackathon, customer feedback loops, \nour focus on usage in the engineering teams, \nand in our performance management practices. Our Ten Inclusive Behaviors guide, shared upon completion of the Unconscious Bias Course, provides best practices for all employees to embrace and model.", "LI_25", "LBody_73\nLBody_74\nLBody_75\nLBody_76\nLBody_77\nLBody_78", "Goal: Donating Microsoft software and services to 100,000 nonprofit organizations. \n\nIn FY15, we donated more than $922 million in software and services to 120,356 nonprofit organizations globally. (Note: some organizations receiving Office 365 Nonprofit services may have also received other donations of Microsoft software through Microsoft’s software donation program, and therefore may have been counted more than once.) \n\nGoal: Activating an additional 1 million users of \nOffice 365 Nonprofit. \n\nIn FY15, we activated 1.09 million new seats for \nOffice 365 Nonprofit. \n", "LI_30", "LBody_87\nLBody_88\nLBody_89\nLBody_90\nLBody_91\nLBody_92", "LI_32", "LBody_97\nLBody_98\nLBody_99\nLBody_100\nLBody_101\nLBody_102", "Our hardware business has grown since its inception in 1982. Our Device and Supply Chain Group manages this supply chain, which spans 25 countries around the \nworld. To provide greater transparency on our hardware supply chain, we publish \nan annual list of our top 100 production suppliers for our commercially available \nhardware products. During FY15, our supply chain integrated the Nokia Devices \nand Services business, which expanded our suppliers to include those engaged \nin mobile device production.8", "NormalParagraphStyle_358\nNormalParagraphStyle_359\nNormalParagraphStyle_360\nNormalParagraphStyle_361\nNormalParagraphStyle_362\nNormalParagraphStyle_363", "NormalParagraphStyle_379\nNormalParagraphStyle_380\nNormalParagraphStyle_381\nNormalParagraphStyle_382\nNormalParagraphStyle_383\nNormalParagraphStyle_384", "NormalParagraphStyle_392\nNormalParagraphStyle_393\nNormalParagraphStyle_394\nNormalParagraphStyle_395\nNormalParagraphStyle_396\nNormalParagraphStyle_397", "NormalParagraphStyle_405\nNormalParagraphStyle_406\nNormalParagraphStyle_407\nNormalParagraphStyle_408\nNormalParagraphStyle_409\nNormalParagraphStyle_410", "NormalParagraphStyle_411\nNormalParagraphStyle_412\nNormalParagraphStyle_413\nNormalParagraphStyle_414\nNormalParagraphStyle_415\nNormalParagraphStyle_416", "NormalParagraphStyle_417\nNormalParagraphStyle_418\nNormalParagraphStyle_419\nNormalParagraphStyle_420\nNormalParagraphStyle_421\nNormalParagraphStyle_422", "Beyond risk mitigation, we also work to \nadvance citizenship projects with our suppliers that create shared value. We encourage and recognize suppliers who made exceptional \nimpact in social and environmental areas through our supplier awards program, which highlights those awarded as examples to attendees of our annual supplier summit. In 2015 these awards included a Supplier Diversity Award, Bring the Opportunity Divide Leadership Award, Impact Sourcing Leadership Award, and Climate Performance Leadership Award. \nWe provide supplier development and training resources, including our Supplier Code of Conduct Training Program. This online training is mandatory for a segment of our suppliers based on risk to ensure they understand and follow ethical business practices in accordance with our Supplier Code of Conduct. In FY15, 55,063 employees at 6,413 suppliers completed this training. Beyond this mandatory training, we invite key suppliers \nto participate in webinars and workshops on topics ranging from Microsoft’s carbon neutrality program to the latest Global Reporting Initiatives guidelines. We participate in the CDP Supply Chain Program to provide our suppliers a standardized platform to understand the risks and opportunities that climate change presents to them.\nLink_159\ntext_27\nLink_160\ntext_28", "LI_41", "LBody_130\nLBody_131\nLBody_132\nLBody_133\nLBody_134\nLBody_135", "Driving Energy Efficiency \nin and with Our Services \nand Devices\nCloud and Azure\nCityNext\nProductivity\nDesign for Green Devices\nDevice Take-Back \nand Recycling", "Microsoft’s operations are generally not water intensive, with the exception of some of our datacenters that rely on water for cooling. We’ve worked to mitigate the impacts of datacenter water use by using recycled municipal waste water in some water-scarce locations such as San Antonio, Texas.\nBeyond datacenters, Microsoft continues to invest in water-saving fixtures in our office \nbuildings and smart landscape irrigation \npractices to conserve water. \nMicrosoft’s Real Estate and Facilities teams around the world implement waste minimization programs, including office supply reuse, recycling, and in many cases, composting programs. Among our accomplishments, we reduced, reused, or recycled 99 percent of the waste from our Redmond, Washington dining facilities by switching to compostable tableware, administering aggressive recycling programs, and adapting our menu to get the \nmost from each item of food served.\nWe’ve also set a long-term goal of 90 percent waste diversion from landfills across our global headquarters facilities in the Puget Sound region of Washington, which represent approximately 36 percent of our total real estate portfolio. We’re rapidly approaching that goal and are working to extend that goal to additional campuses in the United States and around the globe.\nOur increased use of recycling and composting and lower waste to landfill is evident in the following chart, covering data from our facilities across the Puget Sound region. We are working to increase the amount of waste data we collect across other Microsoft locations to improve our waste reporting in the future.\nAs we expand our on-campus hardware device labs, we have begun to generate hazardous waste and e-waste from developing and testing prototype devices. We have implemented a chemical management program that helps employees prevent waste generation by using less-polluting products and reducing or eliminating unused materials. When we do generate waste, we recycle whenever possible and dispose of any remainder as required by local regulations. We have also developed an auditing program to verify that any facility that handles our waste for recycling or disposal can do so responsibly and while complying with environmental regulations. In FY14 we generated 1.68 metric tons of hazardous waste across our Puget Sound facilities, which was disposed of at properly permitted US hazardous waste facilities. ", "This document is provided as is. Information and views expressed in this document, including URL and other Internet website \nreferences, may change without notice. You bear the risk of using it.\nThis document does not provide you with any legal rights to any intellectual property in any Microsoft product. \nYou may copy and use this document for your internal reference process.\n© 2015 Microsoft. All rights reserved.\nBing, BizSpark, DreamSpark, Imagine Cup, Internet Explorer, Office, Office 365, Outlook, Microsoft, Microsoft Azure, Microsoft Dynamics, Microsoft YouthSpark, PhotoDNA, OneDrive, Skype, Surface, Windows, Xbox, Xbox 360, Xbox One, Xbox LIVE, and Yammer are trademarks of the Microsoft group of companies. All other trademarks are property of their respective owners.\nPlease consider the environment before printing this report.", "LI", "LBody\nLBody_0\nLBody_1\nLBody_2\nLBody_3", "Paragraph_Body_11\nParagraph_Body_12\nParagraph_Body_13", "NormalParagraphStyle_113\nNormalParagraphStyle_114\nParagraph_Body_14", "LI_5", "LBody_20\nLBody_21\nLBody_22\nLBody_23\nLBody_24", "LI_6\nLI_7\nLI_8\nLI_9", "Microsoft is recognized as a leader for policies \nthat ensure the accountability and transparency of our engagement in the public policy process. During FY15, we received the third highest rating in the CPA-Zicklin Index of Corporate Political Accountability and Disclosure, which is compiled annually by the Center for Political Accountability and the Carol and Lawrence Zicklin Center for Business Ethics Research at the University of Pennsylvania Wharton School of Business.\nLink_121\ntext_11\nLink_122\ntext_12", "LI_20\nLI_21\nLI_22\nLI_23\nLI_24", "LI_26", "LBody_79\nLBody_80\nLBody_81\nLBody_82\nLBody_83", "A broad range of groups across Microsoft work to advance a safer Internet for all, including the Microsoft Digital Crimes Unit, an international legal and technical team of more than 100 \nattorneys, investigators, big data scientists, and forensic analysts. DCU’s cybercrime experts focus on two areas: fighting malware and reducing risk; and protecting vulnerable populations, especially the very young and the elderly. The DCU’s work includes investigating fraud and tech scams \ntargeting unsuspecting and non-tech savvy customers, who are primarily the elderly. To combat this problem, DCU works with law enforcement, the Federal Trade Commission, and advocacy groups such as AARP to educate consumers on how to avoid being scammed and, when necessary, take legal action against known scammers. \nLink_148\ntext_21\nLink_149\ntext_22", "This commitment starts with offering people access to technology in a language familiar \nto them that respects linguistic and cultural distinctions and helps sustain diverse local \nlanguages and cultures. Through the Microsoft Local Language Program, Microsoft collaborates with local governments, language authorities, universities, and NGOs to provide individuals access to computing in their native language. \nThe local language program supports more than 108 languages, covering 4.5 billion speakers around the planet. Under the program, Microsoft provides a range of language and translation tools and resources, including free Language Interface Packs to make Windows and Office applications available in local languages ranging from Albanian to Yoruba. \nIn addition, Microsoft seeks to ensure our technology is accessible to the more than 1 billion people around the world with a disability. The Microsoft Accessibility Standard is a company-wide policy that drives consideration for accessibility into the design, development, evaluation, and release of \nall of our products and services. Windows, Office, Internet Explorer, Xbox, and our other products and services include accessibility features and controls such as the Ease of Access Center in Windows. Beyond its own accessibility features, Microsoft Office 2013 includes an Accessibility Checker that helps users enhance the accessibility of their documents and presentations. We’ve found that many of our accessibility innovations and features allow us to deliver more flexible user experiences that benefit a wide range of our customers, not just those with disabilities. \nMicrosoft offers guidance on accessibility to our users, with accessibility information available in over 40 languages. Microsoft Customer Support provides a dedicated support desk for customers who have disabilities or who are looking for support when also using assistive technology, such as screen readers, screen magnifiers, and speech recognition commands. We provide guidance to help users address a broad range of disabilities, including: \nLink_150\ntext_23", "LI_34", "LBody_106\nLBody_107\nLBody_108\nLBody_109\nLBody_110", "NormalParagraphStyle_289\nNormalParagraphStyle_290\nNormalParagraphStyle_291\nNormalParagraphStyle_292\nNormalParagraphStyle_293", "NormalParagraphStyle_314\nNormalParagraphStyle_315\nNormalParagraphStyle_316\nNormalParagraphStyle_317\nNormalParagraphStyle_318", "NormalParagraphStyle_427\nNormalParagraphStyle_428\nNormalParagraphStyle_429\nNormalParagraphStyle_430\nNormalParagraphStyle_431", "NormalParagraphStyle_545\nNormalParagraphStyle_546\nNormalParagraphStyle_547\nNormalParagraphStyle_548\nNormalParagraphStyle_549", "There is growing recognition among industry advocates that compliance audits and assessments are not a long-term solution to consistent performance. We seek to establish best practices over time by building supplier capabilities through training and sharing experiences and best \npractices, including detailed guidelines on how \nto improve factory workers’ living environments and environmental health and safety systems. An example of this is the implementation of our Tier 1 Model Factory Scorecard, created in FY13 with input from worker surveys and suppliers to identify best practices in living and working conditions. Through this collaborative effort and quarterly scorecard tracking progress, we are pleased to report that in FY15 all of our Tier 1 factories met our target performance goal of 95 percent or more on the Model Factory Scorecard, and we are now working with those factories to help them achieve 100 percent compliance.\nOver the past several years, we also significantly expanded job-related and life skills training opportunities in one or more of our Tier 1 supplier factories, including:\nFactory worker health and safety is a top priority for Microsoft. Over the past four years, we have significantly expanded our engagements to help suppliers create and maintain safe working environments. These programs included the following.\nIn FY15, 528 SEA professionals from the Microsoft Device Supply Chain attended our SEA in-house training, representing factories with more than 32,000 workers.\nIn addition to meeting legal requirements, we apply the same Social and Environmental Accountability standards and processes to the factories we own and directly operate. Within our Microsoft Devices Group (now called the Windows and Devices Group), we created a global manufacturing Environment, Health amp; Safety (EHamp;S) team of experts in industrial safety, occupational health, and environmental sustainability to work across these factories to align programs and priorities, ensure excellence in EHamp;S, and drive continuous improvement. This new team works closely to align approaches with our existing Supplier Social and Environmental Accountability team that addresses labor rights, employee health and safety, and environmental standards in our hardware and packaging suppliers and with our corporate-wide Occupational Health amp; Safety amp; Well Being team in Human Resources. ", "Goal: Evaluating and aligning our principles, policies, and activities across the Microsoft Devices Group to include the factories and suppliers related to the Nokia Devices and Services business we acquired near the end of FY14.\nGoal: Continuing to scale our SEA supply chain programs such as the Model Factory Program, Worker Grievance reporting, and EHamp;S capability building to continue to enhance worker living and working conditions.\nGoal: Continuing to invest in improving the management system capabilities of low-performing, high-risk Tier 2 factories by providing targeted SEA consulting and training.\nGoal: Working collaboratively with NGOs and others in our industry to advance the goals of the Microsoft Policy on Responsible Sourcing of Raw Materials, including further progress addressing conflict minerals.\nGoal: Enhancing the screening of our non-hardware supply chain annually for ethical, social, and environmental risks and deepening assurance requirements for suppliers found to pose the highest risks. These will include EICC-based supplier self-assessment questionnaires, contractually binding Responsible Sourcing Requirements, quarterly scorecards, onsite assessments, and third-party audits.", "As reported in this chapter, we are applying the same SEA requirements that we apply to our suppliers’ factories to the factories we own. In FY15, we worked to align factory policies and practices with our labor, health and safety, environment, and ethics systems that we apply to our contracted suppliers and to our existing factory in Wilsonville, Oregon.\nAs detailed in this chapter, we continued or expanded all of these efforts and continue to see significant progress by participating suppliers.\nAs detailed in this chapter, we continued these efforts and continue to see significant progress by participating suppliers.\nAs reported in this chapter and our Conflict Minerals Report, we expanded our NGO partnerships and made significant progress tracking minerals in our supply chain and expanding coverage of certified conflict-free smelters.\nIn FY15 we continued to refine and enhance our approaches to screening our indirect suppliers and applying a range of assurance mechanisms, including onsite assessments based on suppliers’ risks. As described in this chapter, Microsoft screens our non-hardware suppliers on an ongoing basis against 23 different ethical, social, and environmental risks by country and by commodity.", "Footnotes_5", "17\tThe reported emissions for this category represent an estimate based on broad-based assumptions and have therefore been rounded. This category may be under- or over-reported by as much as 50 percent.\n18\tEnergy (electricity) data includes on-site solar generation as well as all electricity purchased and consumed.\n\tmtCO2e = metric tons CO2 equivalent; MWh = megawatt hours.\nLink_176\ntext_37", "We met these commitments in FY15 and expanded the program to also address Microsoft-owned manufacturing facilities in FY16.\nOur Real Estate amp; Facilities group set energy efficiency targets and water use targets for our large campuses \nthat represent approximately 80 percent of our campus energy use.\nWe accomplished this, purchasing over 3.2 billion kWh of green power and seeking to purchase green power in the same markets as our operations wherever available. \nWe expanded our global collection and reporting of waste data and continue working to enhance our reporting of water data.", "In FY14, we completed 314 third-party audits and Microsoft assessments of 138 Tier 1 and high- and medium-risk Tier 2 hardware suppliers. Critical/serious nonconformance findings are detailed in this report. In all of these instances, the suppliers instituted corrective action plans that were approved by Microsoft, and follow-up audits confirmed that the suppliers were implementing the corrective action plans.\nWe continued to expand our work with our hardware suppliers to build their capabilities on environmental health and safety management and to improve factory workers’ living environments.\nWe also continued to enhance our work to advance responsible sourcing with our non-hardware suppliers, including new policies designed to ensure that our U.S. suppliers provide paid leave to their employees who \nhandle our work.", "Eighty-four percent of employees polled said they would recommend Microsoft as a great place to work.\nThe percentage of minorities in our global workforce grew from 39 to 41 percent and the percentage of Microsoft \nsenior executive women and minorities increased from \n27 to 30 percent.", "Microsoft maintained our active membership in the Global Network Initiative, a collaborative effort regarding practical steps and policies technology and communication companies can adopt to respect and advance the freedom \nof expression and privacy rights of their users when faced with government demands. We were also the first major cloud provider to gain independent verification for meeting the world’s first international standard for cloud privacy.\nIn working to protect the rights of vulnerable populations, we launched a free cloud-based version of PhotoDNA, to further increase access to this technology used to help identify and remove child sexual abuse images from \nthe Internet.", "NormalParagraphStyle_103\nNormalParagraphStyle_104\nNormalParagraphStyle_105", "NormalParagraphStyle_111\nParagraph_Body_10\nNormalParagraphStyle_112", "This aligns with how we set our citizenship \nstrategies and commitments to drive both \npositive impacts to our business and to society. \nFollowing are the top citizenship issues we identified using this approach. It reflects input gathered from our stakeholder engagement processes described in the previous section, consultation with Business for Social Responsibility (BSR) and other external experts, and consideration of the impacts of Microsoft’s core business priorities.\nCitizenship Materiality Assessment: Top Issues\n\nWe recognize that our citizenship commitments have always played an important role in enabling Microsoft’s business success, but perhaps never more so than now. Microsoft is in the midst of a transformation into a productivity and platform company that will thrive in the mobile-first, cloud-first world. As we explain in depth in our annual report, key elements of this vision include creating more personal computing, building the intelligent cloud, and reinventing productivity and business processes. Our citizenship commitments and the effective management of these top issues play an important part in earning and keeping the trust of our customers and other stakeholders and our ability to realize our long-term business strategy.", "Corporate participation in the public policy process is an important and essential means of enhancing shareholder value and is fundamental to free and democratic societies. We seek to ensure our participation in the political process takes place\nin the light of day and for reasons that are clear and justifiable to our shareholders and the public. Our public policy engagement is guided by a publicly available \nGlobal Public Policy Agenda, which outlines our policy positions on issues core \nto our business. ", "LI_10\nLI_11\nLI_12\nLI_13", "NormalParagraphStyle_187\nNormalParagraphStyle_188\nNormalParagraphStyle_189\nNormalParagraphStyle_190", "Table_Body\nTable_Body_0\nTable_Body_1\nTable_Body_2", "Table_Body_3\nTable_Body_4\nTable_Body_5\nTable_Body_6", "Table_Body_7\nTable_Body_8\nTable_Body_9\nTable_Body_10", "Table_Body_11\nTable_Body_12\nTable_Body_13\nTable_Body_14", "Table_Body_15\nTable_Body_16\nTable_Body_17\nTable_Body_18", "We’ve also embraced opportunities to advocate for public policies that foster diversity and inclusion. In 1993, Microsoft became the first Fortune 500 Company to provide same-sex domestic partnership benefits for Microsoft lesbian, gay, bisexual, and transgender (LGBT) employees. \nWe also found that with regards to our LGBT employees and their families, there can be \nsignificant challenges in states or countries that don’t provide equal recognition for their marriage or committed relationships. For that reason, in January 2012 Microsoft joined other leading companies to support legislation in our home state of Washington that recognized marriage equality for same-sex couples. Since then, we’ve advocated for marriage equality in places where we have facilities and employees and will continue to support marriage equality when this issue arises in communities around the world.\nRecognizing that “top talent” and “diverse talent” are not mutually exclusive populations, we will continue to make Microsoft the employer of choice for all great talent. And with that, we are more focused than ever on empowering our people through recruitment, retention, and career development. We have clear goals company-wide to increase global representation of women and ethnic minorities in the United States, particularly at more senior levels of the organization. Within our talent and recruiting organizations, we are sharpening our focus on diverse candidate pools—and in fact one of the metrics our recruiting organization is measured against is how effectively it recruits from these pools. \nEach member of our senior leadership team is accountable for driving diversity and inclusion progress relative to how we attract, retain, and advance women and other diverse employees within the company. We’ve introduced and revised a number of rich developmental and on-boarding programs to support this effort. We continue to evolve our talent management practices by diversifying our candidate slates and implementing inclusive succession planning for senior diverse talent.\nIn addition to our employee retention and career development strategies, expanding the pipeline of diverse talent for the tech industry as a whole, as well as for our company, is very important to us. We have developed specific programs around the cultivation of diverse talent which start with our high school internship programs and continue with our executive recruiting efforts. The following are examples of some of our programs that directly address the shortage of diverse students graduating with science, technology, engineering, and mathematics (STEM) degrees: ", "LI_17", "LBody_55\nLBody_56\nLBody_57\nLBody_58", "These benefits include:\nIn addition to our wellness programs, Microsoft’s Health and Safety program integrates appropriate safety and health practices into our operations, and works for continual improvement in employee health and safety. As part of this commitment, health and safety professionals assess the safety risks of Microsoft work activities and engage with workers and management to implement safe \nwork practices, hazard controls, and training to minimize safety risks. They also assess new workspaces as they are constructed and existing workspaces periodically to ensure sound design-for-safety principles are followed and needed controls are implemented effectively. As part of this approach, Microsoft involves employees and managers in Health and Safety Committees specific to our datacenters, retail operations, \nand our manufacturing facilities.\nOver the past several years, we have worked \nto enhance our capacities to protect employee health and safety as the diversity of our operations has grown and exposed our employees to new types of workplaces. As described in our Responsible Sourcing and Manufacturing chapter, we created a global manufacturing team of experts \nin industrial safety, occupational health, and environmental sustainability to work across \nMicrosoft’s newly acquired device factories to \nalign programs and priorities, ensure excellence \nin environment, health, and safety, and drive continuous improvement. In FY14, our metrics \nfor occupational injuries and illnesses were comparable to or less than injury-illness rates from other companies with similar operations. Our US facilities had an Injury-Incident Rate of 0.14 and \na Lost-Day Rate of 0.02 (our 12-month rolling average for July 1, 2013—June 30, 2014) based \non US OSHA rules for recordkeeping).", "In FY15, under the leadership of our CEO, our HR organization worked with teams across Microsoft to explore, define, and foster a culture to help us achieve our mission and strategic goals. Our CEO has articulated his vision of culture in employee Qamp;A sessions and all company emails. Moreover, in FY15, we launched our first annual “//oneweek” Global Hackathon to bring together diverse individuals to collaborate on developing innovative new ways for Microsoft to do business and solve customer and social problems.\nWe’ve maintained these benefits and continue to invest in preventative and life-optimizing wellness programs for our employees and in many cases their family as well.\nWe developed new learning opportunities on a range \nof topics from unconscious bias training to career \ndevelopment skills.\nOur Senior Leadership Team conducted strategic planning on the business benefits of diversity and has rolled out new strategies to gain business value from diversity and inclusion across core parts of our business.", "Our Citizenship and Public Affairs team develops and coordinates global strategies that are implemented through local citizenship teams and nonprofit partners to meet unique local needs and conditions. We focus our corporate philanthropy on two strategic areas that align with our business and where we can contribute our skills and resources to create meaningful impact. First, we seek to empower youth around the globe by connecting them with greater opportunities for education, employment, and entrepreneurship, with a particular focus on creating opportunities for all youth to learn computing. Second, we work at a global scale to donate technology to nonprofit organizations so they can do even more good. \nAs a complement to our focused approach to our corporate philanthropy, our flexible volunteer and employee giving programs enable employees to support the causes they choose with donations of time, expertise, money, and software. Our employees regularly tell us a key factor behind their choice to work at Microsoft is knowing their personal commitment to philanthropy will be honored, encouraged, and matched.\nWe also work to use the full set of resources we can offer to nonprofits and communities beyond our contributions, product donations, and volunteer talent. For instance, we have active community engagement programs to organize and host nonprofit and community events at Microsoft Stores and a number of our facilities in cities around the world, such as the Microsoft New England Research and Development (NERD) Center in Boston. We frequently donate space for our nonprofit partners to hold meetings and events in our facilities. We also extend our expertise in citizenship communications to nonprofit partners with trainings and resources on effective digital communications and use of social media. We also collaborate with key nonprofit partners on joint public relations and communications strategies to publicize their message on important causes.\nFor the second year in a row, our FY15 total annual giving surpassed $1 billion.", "NormalParagraphStyle_234\nNormalParagraphStyle_235\nNormalParagraphStyle_236\nNormalParagraphStyle_237", "NormalParagraphStyle_238\nNormalParagraphStyle_239\nNormalParagraphStyle_240\nNormalParagraphStyle_241", "NormalParagraphStyle_242\nNormalParagraphStyle_243\nNormalParagraphStyle_244\nNormalParagraphStyle_245", "NormalParagraphStyle_254\nNormalParagraphStyle_255\nNormalParagraphStyle_256\nNormalParagraphStyle_257", "NormalParagraphStyle_258\nNormalParagraphStyle_259\nNormalParagraphStyle_260\nNormalParagraphStyle_261", "NormalParagraphStyle_262\nNormalParagraphStyle_263\nNormalParagraphStyle_264\nNormalParagraphStyle_265", "NormalParagraphStyle_266\nNormalParagraphStyle_267\nNormalParagraphStyle_268\nNormalParagraphStyle_269", "Microsoft’s respect for human rights reflects our longstanding commitment to \nempowering individuals around the world. We work to ensure that we respect \nhuman rights across all aspects of our business, and we seek to apply the power \nof technology to promote human rights globally. ", "LI_31", "LBody_93\nLBody_94\nLBody_95\nLBody_96", "NormalParagraphStyle_294\nNormalParagraphStyle_295\nNormalParagraphStyle_296\nNormalParagraphStyle_297", "NormalParagraphStyle_319\nNormalParagraphStyle_320\nNormalParagraphStyle_321\nNormalParagraphStyle_322", "NormalParagraphStyle_424\nNormalParagraphStyle_425\nNormalParagraphStyle_426", "NormalParagraphStyle_432\nNormalParagraphStyle_433\nNormalParagraphStyle_434\nNormalParagraphStyle_435", "LBody_111\nLBody_112\nLBody_113\nLBody_114", "LI_37\nLI_38\nLI_39\nLI_40", "Environmental Principles\nClimate Change Policy Statement\nEnvironmental Compliance Specifications\nResponsible Sourcing of Raw Materials_0", "Footnotes_7\nFootnotes_8", "LBody_139\nLBody_140\nLBody_141", "Link_58\nLink_59\nLink_60", "LBody_4\nLBody_5\nLBody_6", "Microsoft’s citizenship mission is to serve globally the needs of communities and to fulfill our responsibilities to the public. In doing so, we seek to apply the power of our corporate policies and business practices, our products, and our investments in communities to advance our company mission to empower every person and every organization on the planet to achieve more.\nLink_108\ntext_3", "NormalParagraphStyle_89\nNormalParagraphStyle_90\nNormalParagraphStyle_91", "NormalParagraphStyle_92\nNormalParagraphStyle_93\nNormalParagraphStyle_94", "NormalParagraphStyle_95\nNormalParagraphStyle_96\nNormalParagraphStyle_97", "Paragraph_Body_2\nParagraph_Body_3\nParagraph_Body_4", "NormalParagraphStyle_100\nNormalParagraphStyle_101\nNormalParagraphStyle_102", "Paragraph_Body_5\nParagraph_Body_6\nParagraph_Body_7", "Paragraph_Body_8\nNormalParagraphStyle_106\nParagraph_Body_9", "NormalParagraphStyle_108\nNormalParagraphStyle_109\nNormalParagraphStyle_110", "Microsoft is recognized as a leader for policies that help to ensure the accountability and transparency \nof our engagement in the public \npolicy process.", "NormalParagraphStyle_138\nNormalParagraphStyle_139", "Unless otherwise stated, information in this report covers all of Microsoft’s global operations during our fiscal year 2015 (July 1, 2014 to June 30, 2015).\nLink_110\ntext_5", "Corporate governance at Microsoft is designed to promote the long-term interest \nof our shareholders, maintain internal checks and balances, strengthen management accountability, engender public trust, and foster responsible decision \nmaking and accountability.", "Goal: Maintaining or increasing dialogue between \nstakeholders and the company. \nGoal: Monitoring and implementing the regulatory and disclosure requirements adopted under the Dodd-Frank Wall Street Reform and Consumer Protection Act. ", "LI_15", "LBody_39\nLBody_40\nLBody_41", "Microsoft offers competitive compensation and benefits to attract the world’s best talent in over 100 countries, and rewards people for great results. Our Performance and Development approach and rewards program applies to Microsoft employees globally at every level of the organization to the extent permitted by local law. \nFor over two decades, our Global Diversity and Inclusion Office has evolved and enhanced the company’s diversity and inclusion initiatives to meet the changing \nneeds of our workforce and business. We have a deep commitment to create an inclusive environment where all employees can do their best work. This commitment is anchored around strengthening our diversity and inclusion acumen, deepening leader and manager understanding of the diversity strategy and its value proposition, and increasing senior leader accountability for their diversity plans. ", "We realize there is still hard work ahead to make our commitment and focus on diversity and inclusion a truly integrated part of the company’s standard business practices. We are inspired by the opportunities that lie before us and believe that the diversity of our workforce and inclusiveness of our culture will continue to play a critical role in helping us deliver innovations that will bring ultimate value to our customers.\nLink_131\ntext_16", "With training opportunities ranging from classroom modules to peer-to-peer mentoring, no one metric captures the breadth of learning available to Microsoft employees, but globally we have found that in FY15:\nWe invest significantly in our employees’ \ncareer development, provide on-the-job “stretch” opportunities for advancement, and offer frequent promotion opportunities, all of which are foundational to our culture. \nThroughout the year, employees get coaching \non career development through meetings with their manager. Managers receive training to enhance their skills in coaching and mentoring employees on how to achieve the greatest impact, as well as how to drive their own career development, providing tools and resources to support focused and actionable conversations. We also offer all new employees a robust new employee orientation that covers a broad range of topics \nto help set employees up for success from their first day at Microsoft. Orientation topics range from an overview of benefits, online resources, opportunities to engage in communities, to exploration of our company values, culture, \nand Standards of Business Conduct.", "Goal: Continuing to advance our culture of working together to drive meaningful impact for our teams, business, and customers and to adjust our approach to Performance and Development programs, as needed, \nin response to employee feedback and evolving \nbusiness needs.", "Goal: Continuing to offer industry-leading health care in the United States with no employee premiums and continuing to provide multi-modal educational materials to teach employees and their dependents how to optimize their health care and overall wellness.\nGoal: Creating learning that supports our employees’ ability to adapt and lead in our changing company, a changing industry, and a changing world. \n\nGoal: Driving innovation and efficiency by infusing diversity and inclusion into our business strategy and by developing innovative products and services to better serve the needs of a broad range of customers.", "NormalParagraphStyle_246\nNormalParagraphStyle_247\nNormalParagraphStyle_248", "In FY15, we continued to expand our Office 365 Nonprofit offer to reach a total of 110 countries. The program provides nonprofits with free access to the latest Microsoft Office cloud service, which includes anywhere access to Microsoft Office applications and professional email, calendar, instant messaging (IM), and web conferencing tools. The offering allows nonprofits’ employees and strategic volunteers to access Office applications and documents anywhere across multiple devices; enables easy collaboration through content sharing; and offers efficient administrative controls so organizations can spend less time and resources on IT maintenance. \nThrough this program in FY15 we activated 1.09 million new Office 365 seats among nonprofits. \nIn its first two years, Office 365 Nonprofit offers have provided licenses for 2.7 million nonprofit employees and strategic volunteers. \nWe also host NGO Connection Days around the globe for nonprofit organizations to learn how technology can help them become more efficient and effective in their work. In FY15, Microsoft collaborated with nonprofits by hosting 89 NGO Connection Days in 59 countries. ", "In FY15, Microsoft provided support to address a number of disasters around the world, including the spread of ebola in Africa, flooding in India, \nand a cyclone in the Philippines. In addition, we provided more than $13 million in cash, technology, and in-kind support to help with the relief efforts necessitated by two major earthquakes \nin Nepal. After the devastation we saw in Nepal, we offered free calls in and out of the country \nvia Skype. The Microsoft Innovation Center in Kathmandu trained student partners and sent them to local communities with Windows Phones to help people make Skype calls and connect \nwith families, friends, and aid. Our Microsoft Consulting Services Team also provided a range \nof free technology services to agencies working \non earthquake relief efforts in Nepal, including the United Nations Development Programme, Office of the Prime Minister, Nepalese Ministry of Finance, and the Nepal Police. \nLink_139\ntext_18", "LI_27\nLI_28\nLI_29", "LI_33", "LBody_103\nLBody_104\nLBody_105", "Social and Environmental \nAccountability in Our Device \nand Supply Chain Group", "All suppliers doing business with Microsoft must uphold the ethical business, \nemployment, environmental, and worker safety practices prescribed in our Supplier Code of Conduct—which aligns with, and in certain cases exceeds, the Electronic Industry Citizenship Coalition’s (EICC’s) responsible supply chain standards. We are also committed to ensuring that suppliers of the raw materials incorporated into \nour products operate sustainably and ethically.", "NormalParagraphStyle_543\nNormalParagraphStyle_544", "Enhancing Workplace \nExperiences\nEnvironmental, Health, and Safety Capability Building\nSustainable Manufacturing", "As with our SEA Program for hardware suppliers, Microsoft’s Global Procurement Group’s responsible sourcing initiatives span a broad range of work to ensure \ncompliance, advance sustainability in procurement processes, and pursue \npartnerships with suppliers. ", "Microsoft believes that information technology has tremendous potential to help solve pressing environmental and energy challenges. We understand and embrace the opportunity to help people and organizations around the world improve the environment. We seek to advance sustainability through the products and cloud \ncapabilities we offer to our customers and partners, and the use of big data to \ndiscover the next generation of innovations and insights.", "LI_42", "LBody_136\nLBody_137\nLBody_138", "We are mindful that environmental stewardship needs to begin with our own \noperational practices, which includes delivering on our commitment to be \ncarbon neutral and to procure 100 percent renewable energy.", "Carbon Neutrality \nCommitment and Carbon Fee\nDriving Energy Efficiency Across Our Operations\nCarbon Footprint \nand Energy Use", "NormalParagraphStyle_570\nNormalParagraphStyle_571", "Recognizing the need to work to address global environmental challenges in broad partnerships, Microsoft’s Climate Change Policy Statement recognizes that climate change is “a serious challenge that requires a comprehensive and global response from all sectors of society.” \nMicrosoft is working to advance public policies that promote the use of information and communication technology (ICT) to advance energy efficiency, spur innovation and economic \nopportunity, and contribute to practical strategies for mitigating climate change. For the past six years, our annual Global Public Policy Agenda \nhas included a section supporting government \npolicies that support technological advances \nand innovation to reduce energy use and limit \nthe effects of climate change. This section also includes support for cost-effective policies that increase the availability of low carbon and renewable energy for us to use in our operations. \nWe have also supported industry and multi-stakeholder initiatives to address climate policy. Among these:\nMicrosoft supports environmental research that isn’t tied to developing a specific product or service, but rather advances the field of computing and demonstrates how cloud services and mobile devices can combine to help solve some of society’s biggest environmental challenges. Our own Microsoft Research (MSR) team is working on identifying and creating the next generation of climate change models, tools, and technologies that will continue to drive our company and the world forward, including the following:", "LI_46\nLI_47\nLI_48", "Link_68\nLink_69", "Link_82\nLink_83", "Microsoft’s total annual giving surpassed $1 billion for the second year in a row, with cash donations of $135 million and in-kind donations worth $922 million.\nWe surpassed the 3-year goal for our YouthSpark initiative by creating opportunities for education, employment, and entrepreneurship for 307 million youth worldwide.", "More than 99 percent of Microsoft employees completed annual training on our Standards of Business Conduct, \nwhich is available globally in 19 languages.", "Microsoft is a technology company whose mission is to empower every person and every organization on the planet to achieve more. Our strategy is to build best-in-class platforms and productivity services for a mobile-first, cloud-first world.\nFounded in 1975, we operate worldwide and have offices in more than 100 countries. We develop, license, and support a wide range of software products, services, and devices that deliver new opportunities, greater convenience, and enhanced value to people’s lives. We offer an array of services, including cloud-based services, to consumers and businesses. We design, manufacture, and sell devices that integrate with our cloud-based services, and we deliver relevant online advertising to a global audience.", "Microsoft’s Citizenship and Public Affairs team \nsits within our Legal and Corporate Affairs Group and drives initiatives and engages with groups across Microsoft to help the company fulfill its responsibilities as a global corporate citizen and deliver added value to the company and its stakeholders. This team of 30+ professionals develops our global citizenship strategies and works in partnership with local Microsoft citizenship and corporate affairs professionals around the world to advance our citizenship commitments wherever we do business. The General Manager of Citizenship and Public Affairs reports directly to Microsoft’s Executive Vice President and General Counsel, who sits on CEO Satya Nadella’s Senior Leadership Team. \nMore broadly, citizenship at Microsoft relies on the combined efforts of all our employees, including colleagues in dozens of other leadership roles, business and operational groups, and global subsidiaries. Together, they help identify emerging issues and societal challenges where Microsoft can add the greatest value, develop and implement new strategies and programs, and monitor our progress.", "Microsoft’s Senior Leadership Team and individual managers use the poll results to further improve on areas of strength and address opportunities \nfor improvement.", "Industry coalitions \nand public-private partnerships", "Civil society / \nnongovernmental organizations (NGOs)", "Across the breadth of our business, we engage \nwith thousands of NGOs working on issues ranging from environmental sustainability to employee diversity to child safety.", "NormalParagraphStyle_117\nNormalParagraphStyle_118", "NormalParagraphStyle_119\nNormalParagraphStyle_120", "NormalParagraphStyle_122\nNormalParagraphStyle_123", "NormalParagraphStyle_124\nNormalParagraphStyle_125", "NormalParagraphStyle_126\nNormalParagraphStyle_127", "NormalParagraphStyle_128\nNormalParagraphStyle_129", "NormalParagraphStyle_131\nNormalParagraphStyle_132", "NormalParagraphStyle_133\nNormalParagraphStyle_134", "NormalParagraphStyle_135\nNormalParagraphStyle_136", "Responsible Sourcing,\nEthical Business Conduct \nand Governance_0", "Link_109\ntext_4", "Scope\nStandards", "Establishing trust in our complex and dynamic world starts with our culture—how we work, what we value, how we interact with others. The foundation of our ethical culture is our commitment to integrity, honesty, and principled behavior in every situation and challenge we face.\nOur commitments to ethical business practices and strong corporate governance policies are designed to promote the long-term interests of our shareholders, maintain internal checks and balances, promote accountability at all levels of our organization, and foster responsible \ndecision making. We are proud that because \nof our commitments and actions, we’ve been \non the Ethisphere Institute’s list of the World’s Most Ethical Companies every year since they began issuing the list in 2011.", "Business Conduct and \nCompliance Program\nAnti-corruption_0", "LBody_27", "Link_118\ntext_8", "\tto receive calls in 49 languages).\n\tDirector of Compliance.", "NormalParagraphStyle_149\nNormalParagraphStyle_150", "NormalParagraphStyle_151\nNormalParagraphStyle_152", "NormalParagraphStyle_153\nNormalParagraphStyle_154", "NormalParagraphStyle_155\nNormalParagraphStyle_156", "NormalParagraphStyle_157\nNormalParagraphStyle_158", "NormalParagraphStyle_159\nNormalParagraphStyle_160", "NormalParagraphStyle_161\nNormalParagraphStyle_162", "NormalParagraphStyle_163\nNormalParagraphStyle_164", "NormalParagraphStyle_165\nNormalParagraphStyle_166", "NormalParagraphStyle_167\nNormalParagraphStyle_168", "NormalParagraphStyle_169\nNormalParagraphStyle_170", "NormalParagraphStyle_171\nNormalParagraphStyle_172", "NormalParagraphStyle_173\nNormalParagraphStyle_174", "NormalParagraphStyle_175\nNormalParagraphStyle_176", "NormalParagraphStyle_177\nNormalParagraphStyle_178", "posting video interviews\ninterview with Mason Morfit", "website\ntab", "Link_126\ntext_14", "Empowering Our People\nExpanding Our Pipeline of Talent and Leaders", "Delighting Our Customers\nWorkforce Diversity Data", "NormalParagraphStyle_198\nNormalParagraphStyle_199", "NormalParagraphStyle_200\nNormalParagraphStyle_201", "NormalParagraphStyle_202\nNormalParagraphStyle_203", "Table_Body_19\nTable_Body_20", "Table_Body_21\nTable_Body_22", "NormalParagraphStyle_206\nNormalParagraphStyle_207", "NormalParagraphStyle_210\nNormalParagraphStyle_211", "NormalParagraphStyle_212\nNormalParagraphStyle_213", "NormalParagraphStyle_214\nNormalParagraphStyle_215", "NormalParagraphStyle_218\nNormalParagraphStyle_219", "NormalParagraphStyle_220\nNormalParagraphStyle_221", "NormalParagraphStyle_222\nNormalParagraphStyle_223", "Footnotes_1", "Link_132\ntext_17", "LI_18", "LBody_59\nLBody_60", "Microsoft is committed to applying our technology, talent, and financial resources \nto empower communities around the planet where our employees, partners, and customers live and work. ", "Outside the US, employees can take up to three paid days off to volunteer in their local communities. In the US, our Employee Giving Program matches employee gifts of money and time to nonprofits up to $15,000 annually. In FY15, we increased our company volunteer match to $25 per hour so that, as an example, four hours of volunteer time results in a $100 donation from Microsoft to the nonprofit. In FY15, 67 percent of Microsoft’s US employees participated in the Employee Giving Program.\nTo encourage employees to volunteer, we maintain an extensive database of volunteer opportunities and host an organized Day of Caring for team-based group volunteer efforts for employees around the Seattle area and many of our other locations. We also actively recruit employees to participate as volunteer computer science educators through our TEALS Program. This year we took a new step to match our employees’ technical expertise with nonprofit needs for technology support. Tech Talent for Good launched with a varied portfolio of twenty nonprofits in Washington state, and we will expand the program in FY16.", "Footnotes_3", "6\tThe FY15 total includes a one-time incremental adjustment of $19 million, reflecting the \ninclusion of two additional months of disbursements, due to the company’s transition to \na new program vendor at the close of FY15.\n7 Microsoft’s US employees registering for a Microsoft donation to match their volunteer hours.", "We exceeded this goal, providing 307 million opportunities for youth through Microsoft YouthSpark between 2012 \nand 2015.", "Microsoft’s Global Human Rights Statement\nUN Guiding Principles Reporting Framework. ", "Microsoft has a longstanding commitment to ensuring the privacy and security of our customers’ data. We have a strong set of privacy principles and practices that apply company-wide. We incorporate privacy considerations into our design and development processes, offer our customers meaningful privacy choices, and \nresponsibly manage and protect the customer data that we store. ", "Microsoft is a founding member and sits on the board of the Global Network \nInitiative (GNI), a collaborative effort between ICT companies, civil society organizations, socially responsible investors, and academics. GNI provides a set of Principles and Implementation Guidelines regarding practical steps and policies ICT companies can adopt to respect and advance the freedom of expression and privacy rights of their users when faced with governmental demands. ", "The GNI provides for a series of independent assessments conducted every other year by an independent assessor accredited by the GNI Board, on how its member companies are implementing the GNI Principles. The independent assessor reviews the policies and procedures adopted by the company in accordance with the GNI guidelines and looks at how the policies and procedures were implemented in real-world cases. Based on the results of the most recent assessment and engagement with Microsoft, the GNI Board determined that Microsoft is compliant with the GNI Principles. The assessment found that the systems, policies, and procedures that Microsoft relies upon to implement the GNI Principles are both mature and subject to ongoing review with an eye to continuous improvement. The GNI’s public report on the results of its Phase III company assessments is available online.\nAs part of our commitment to GNI and under our Global Human Rights Statement, Microsoft has independent experts in business and human rights conduct Human Rights Impact Assessments (HRIAs) of specific parts of our business. The HRIAs include independent research, internal interviews, and engagement with external stakeholders to identify relevant human rights risks and opportunities for specific Microsoft products, services, business relationships, and markets. ", "Microsoft works to help protect people of all ages and abilities against a broad range of risks, including malware, online hoaxes, tech scams, and online bullying.\nTo promote the safer use of Microsoft devices and online services, we offer a range of safety features, including family safety settings. We also have strong prohibitions against abusive behavior on our online services in our Terms of Use, which are enforced by complaint response teams on services such as Xbox Live.", "SEA Supplier \nEngagement Approach\nSEA Audit and \nAssessment Findings", "Social and Environmental Accountability\nin Our Device and Supply Chain Group", "Social and Environmental Accountability_0\nin Our Device and Supply Chain Group_0", "Social and Environmental Accountability_1\nin Our Device and Supply Chain Group_1", "Findings of Critical/Serious \nNonconformances", "Freely Chosen \nEmployment 11", "Findings of Critical/Serious _0\nNonconformances_0", "Social and Environmental Accountability_2\nin Our Device and Supply Chain Group_2", "Social and Environmental Accountability_3\nin Our Device and Supply Chain Group_3", "Link_156\ntext_24", "Building Efficiency Investments\nDatacenters ", "2_0\nSigning long-term renewable power purchase agreements in regions where we \nhave operations and those projects are viable.", "3_0\nInvesting in green power (RECs) to match our total electricity usage with the equivalent number of RECs that are credible, are verifiable, and add additional renewable energy to the grid.", "1_0\nConnecting facilities directly to renewable energy sources where feasible.", "NormalParagraphStyle_566\nNormalParagraphStyle_567", "NormalParagraphStyle_568\nNormalParagraphStyle_569", "Total Indirect GHG Emissions Balanced by \nCarbon Offset Purchases, %", "NormalParagraphStyle_572\nNormalParagraphStyle_573", "NormalParagraphStyle_574\nNormalParagraphStyle_575", "NormalParagraphStyle_579\nNormalParagraphStyle_580", "NormalParagraphStyle_582\nNormalParagraphStyle_583", "NormalParagraphStyle_584\nNormalParagraphStyle_585", "NormalParagraphStyle_586\nNormalParagraphStyle_587", "NormalParagraphStyle_588\nNormalParagraphStyle_589", "NormalParagraphStyle_590\nNormalParagraphStyle_591", "NormalParagraphStyle_592\nNormalParagraphStyle_593", 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"NormalParagraphStyle_635\nNormalParagraphStyle_636", "NormalParagraphStyle_637\nNormalParagraphStyle_638", "NormalParagraphStyle_639\nNormalParagraphStyle_640", "NormalParagraphStyle_641\nNormalParagraphStyle_642", "NormalParagraphStyle_644\nNormalParagraphStyle_645", "NormalParagraphStyle_646\nNormalParagraphStyle_647", "NormalParagraphStyle_648\nNormalParagraphStyle_649", "NormalParagraphStyle_650\nNormalParagraphStyle_651", "NormalParagraphStyle_652\nNormalParagraphStyle_653", "NormalParagraphStyle_654\nNormalParagraphStyle_655", "NormalParagraphStyle_656\nNormalParagraphStyle_657", "Water \nWaste", "Link_177\ntext_39", "Link_178\ntext_40", "Public Policy Engagement on Climate and Energy\nMicrosoft Research", "Link_179\ntext_41", "LBody_142", "Link_180\ntext_42", "Link", "Performance\nHighlights", "Link_0", "Our People", "Link_1", "Our Company", "Link_2", "Our People", "Link_3", "Human Rights", "Link_4", "Responsible \nSourcing and Manufacturing", "Link_5", "Performance\nHighlights", "Link_6", "Empowering Communities", "Link_7", "Environmental Sustainability", "Link_8", "Ethical Business Conduct and Governance", "Link_9", "Responsible \nSourcing and Manufacturing", "Link_10", "Human Rights", "Link_11", "Our People", "Link_12", "Our Company", "Link_13", "Ethical Business Conduct and Governance", "Link_14", "Environmental Sustainability", "Link_15", "Empowering Communities", "Link_16", "Environmental Sustainability", "Link_17", "Ethical Business Conduct and Governance", "Link_18", "Responsible \nSourcing and Manufacturing", "Link_19", "Human Rights", "Link_20", "Our People", "Link_21", "Our Company", "Link_22", "Our Company", "Link_23", "Performance\nHighlights", "Link_24", "Empowering Communities", "Link_25", "Environmental Sustainability", "Link_26", "Ethical Business Conduct and Governance", "Link_27", "Responsible \nSourcing and Manufacturing", "Link_28", "Human Rights", "Link_29", "Our People", "Link_30", "Our Company", "Link_31", "Responsible \nSourcing and Manufacturing", "Link_32", "Ethical Business Conduct and Governance", "Link_33", "Environmental Sustainability", "Link_34", "Empowering Communities", "Link_35", "Performance\nHighlights", "Link_36", "Our Company", "Link_37", "Our People", "Link_38", "Human Rights", "Link_39", "Responsible \nSourcing and Manufacturing", "Link_40", "Ethical Business Conduct and Governance", "Link_41", "Environmental Sustainability", "Link_42", "Empowering Communities", "Link_43", "Performance\nHighlights", "Link_44", "Empowering Communities", "Link_45", "Performance\nHighlights", "Link_46", "Human Rights", "Link_47", "Performance\nHighlights", "Link_48", "Empowering Communities", "Link_49", "Environmental Sustainability", "Link_50", "Ethical Business Conduct and Governance", "Link_51", "Responsible \nSourcing and Manufacturing", "Link_52", "Our Company", "Link_53", "Our People", "Link_54", "Human Rights", "Microsoft 2015 Citizenship Report", "Microsoft 2015 Citizenship Report", "Microsoft 2015 Citizenship Report", "Microsoft 2015 Citizenship Report", "Microsoft 2015 Citizenship Report", "Microsoft 2015 Citizenship Report", "Microsoft 2015 Citizenship Report", "Microsoft 2015 Citizenship Report", "Microsoft 2015 Citizenship Report", "20", "39", "47", "5", "58", "31", "12", "4", "Microsoft 2015\nCitizenship Report", "Letter from Our CEO", "ambitions", "Over the past year at Microsoft, we’ve challenged ourselves to rediscover what it is about the core of our company that really matters. How can we make a difference in this world in a way that no other company can? We’ve begun by embracing a new mission: to empower every person and every organization on the planet to achieve more. To achieve our mission, we’ve defined business \n", "innovative technology", "The true test of the difference we make is the impact we have on people’s lives. This is why I traveled to Nanyuki, Kenya, to celebrate the launch of Windows 10. Nestled in the foothills of Mt. Kenya, 125 miles north of Nairobi, Nanyuki is a place where sending an email or accessing the Web in the past required a five-hour walk to the nearest wireless hotspot. Now, an \n", "YouthSpark", "\nWe’re particularly proud of our efforts to increase access to education and opportunity for young people. This year we surpassed the three-year goal for our \n", "Contents", "7", "3", "5", "FY15", "Select Performance Highlights", "Our Company\t5", "Ethical Business Conduct \nand Governance\t12", "Our Business", "Citizenship Governance", "Our Approach", "Commitment to Ethics and \nStandards of Business Conduct", "Corporate Governance", "Public Policy Engagement", "FY15 Progress and FY16 Goals", "Our People\t20", "Empowering Communities\t31", "Our Approach", "Compensation and Benefits", "Diversity and Inclusion", "Global \n", "Training and Development", "Employee Wellness and Occupational Health and Safety", "FY15 Progress and FY16 ", "Our Approach", "Microsoft YouthSpark", "Technology for Good", "Humanitarian and Disaster Response", "Employee Giving and Volunteerism", "FY15 Progress and FY16 ", "Human Rights\t39", "Responsible Sourcing \nand Manufacturing\t47", "Our Approach", "Privacy and Data Security", "Global Network Initiative", "Working to Protect the Rights \nof Vulnerable Populations", "Accessible Technology", "FY15 Progress and FY16 ", "Our Approach", "Social and Environmental Accountability \nin Our Device and Supply Chain", "Responsible Sourcing of Raw Materials", "Responsible Sourcing With \nIndirect Suppliers", "FY15 Progress and FY16 ", "Link_95", "Environmental \nSustainability\t58", "Our Approach", "Products ", "Our Business Practices", "Water and Waste", "Partnerships", "FY15 Progress and FY16 Goals", "1", "4", "6", "2", "FY15", "Select Performance Highlights", "Responsible Sourcing \nand Manufacturing ", "Ethical Business Conduct \nand Governance", "Environmental Sustainability ", "Empowering Communities", "We met our carbon neutrality commitment through \ninternal efficiency projects, the purchase of more than \n3 billion kilowatt hours (kWh) of renewable energy \n(equal to 100 percent of our global electricity use), and \na carbon offset project portfolio representing more than 600,000 metric tons of carbon dioxide (CO2) emissions.", "Our People", "Human Rights ", "Our Company", "Link_102", "Our Business", "Link_103", "Citizenship Governance", "Link_104", "Stakeholder Engagement ", "Link_105", "Citizenship Materiality Assessment", "Link_106", "About This Report", "1", "1.1", "Our Business", "available here", "The Applications and Services Engineering Group focuses on broad applications and services core technologies in productivity, communication, education, search, and other information categories.", "The Cloud and Enterprise Engineering Group focuses on development of our cloud infrastructure, server, database, customer relationship management (CRM), enterprise resource planning (ERP), management, development tools, and other business process applications and services for enterprises.", "The Windows and Devices Engineering Group focuses on our Windows platform across devices of all types, hardware development of our devices—including Xbox consoles, Surface devices, Lumia phones, non-Lumia phones, Surface Hub, Microsoft Band, and other hardware products and accessories—\nand associated online marketplaces.", "LBody_7", "Reinvent productivity and business processes.", "LBody_8", "Build the intelligent cloud platform.", "LBody_9", "Create more personal computing.", "1.2", "Citizenship Governance", "charter for the Regulatory and Public Policy Committee", "The \n", "1.3", "Stakeholder Engagement", "Stakeholder Engagement Overview", "To inform our decisions, we regularly communicate with thousands of \nstakeholders globally ranging from parents concerned about their child’s online safety to international human rights experts. These engagements take many forms. ", "Employees from our business and operational groups regularly identify and engage with stakeholders in the course of their daily work activities. Our Citizenship and Public Affairs team also manages a number of stakeholder relationships and ongoing dialogues to help inform and guide our strategies. We connect with leading thinkers on corporate responsibility and societal challenges in groups such as Business for Social Responsibility, \nCSR Europe, and the World Economic Forum. We learn from them and other advocacy groups, socially responsible investors, corporate responsibility rating agencies, other external stakeholders, and our own employees to identify new and emerging citizenship issues. We also base our work on international frameworks such as the United Nations Global Compact, the UN Guiding Principles on Business and Human Rights, and \nthe Global Reporting Initiatives’ Sustainability Reporting Guidelines.", "Stakeholder Groups", "Examples of Engagement", "Selected Results", "Customers", "We gain insights from online feedback, support communities, product satisfaction surveys, usability studies, research forums, business account managers, and our customer service representatives. ", "Customer feedback and insights underlie all of our decisions to enhance existing products and develop new ones. In FY15, the Windows Insider program reached 5 million customers to allow them to preview Windows 10 and provide feedback, which helped shape key features of the product. Customer feedback also plays an important role in helping us develop clearer and more customer-friendly contracts and terms of use policies.", "Stakeholder Groups", "Examples of Engagement", "Selected Results", "Investors", "Beyond traditional investor communications such as earnings calls and our annual meeting, we seek to proactively provide investors with corporate governance information through diverse communications, including a director video interview series and direct communications from independent members of our board to shareholders. We proactively reach out to institutional investors—including public pension funds and socially responsible investors—about governance and citizenship-related topics, and deliver a summary of their feedback to the board. In FY15, these engagements reached investors holding over 40 percent of our outstanding shares. We seek to transparently provide information sought by socially responsible investors and corporate responsibility rating agencies and seek their insights to identify new and emerging citizenship issues. ", "Our engagement with investors has influenced many important parts of our citizenship strategy, such as our human rights commitments under the Global Network Initiative, a collaborative effort between information and communications technology (ICT) companies, human rights groups, socially responsible investors, and others. Investors are an important influence as we continue to consider ways to enhance our corporate governance principles and policies to serve the interests of our shareholders and other stakeholders.", "1.3", "Stakeholder Engagement", "Stakeholder Engagement Overview", "Stakeholder Engagement Overview", "Stakeholder Groups", "Examples of Engagement", "Selected Results", "Employees", "We ask for—and act on—employee feedback in multiple ways, including conducting an annual online anonymous poll of all our employees around the world. The poll, with a nearly 85 percent response rate, asks employees to share feedback about the Microsoft work experience, including how they feel about their workgroups, organization, and company as a whole. Microsoft offers employees, customers, suppliers, \nand other external parties multiple ways to report compliance concerns as described in our Ethical \nBusiness Conduct and Governance chapter. ", "Suppliers", "We engage with suppliers through capacity-building workshops and trainings, supplier advisory boards, hosting an annual supplier summit, and participation in industry coalitions, such as the Electronics Industry Citizenship Coalition. We also conduct anonymous Voice of the Supplier Surveys, which include questions on citizenship issues.", "Our work to address environmental and social issues in collaboration with our suppliers is detailed in the Responsible Sourcing chapter.", "Communities", "Microsoft’s local citizenship teams work directly with community groups and in partnerships with local nonprofits. They share views and insights from local communities with Microsoft’s global Citizenship and Public Affairs team in direct communications, through regular conference calls, and at an annual global summit.", "Microsoft’s YouthSpark Initiative and Office 365 for Nonprofits program were both strongly shaped by input from local communities about the best way to serve economic and social needs in their area.", "Stakeholder Groups", "Examples of Engagement", "Selected Results", "Microsoft actively participates in industry coalitions to address important citizenship issues and in many cases is among the leaders bringing companies together to work collaboratively to solve challenges.", "Microsoft has helped establish \ngroups that help set the standard \nfor responsible business practices in the ICT industry, ranging from the Electronics Industry Citizenship Coalition and Global Network Initiative to the International Association of Accessibility Professionals.", "Virtually all of the initiatives described throughout this Citizenship Report have benefitted from insights provided by NGOs and in many cases involve active ongoing partnerships with them.", "Policymakers", "Microsoft engages actively in policy issues relevant to our business, both directly and through industry associations. We seek to ensure that our participation in the political process takes place in the light of day and for reasons that are clear and justifiable to our shareholders and the public.", "1.4", "Citizenship Materiality Assessment", "To apply the Global Reporting Initiative’s G4 Sustainability Reporting Guidelines to our citizenship materiality assessment, we follow the common practice of defining our most significant citizenship issues as those ranking highest both in business importance to Microsoft and in importance to our key stakeholders.", "Access to technology and economic opportunity", "Climate change and energy", "Corporate governance", "Data privacy and security", "Device lifecycle impacts", "Environmental/social applications of technology", "Ethical business practices", "Human capital (or talent management and development)", "Human rights", "Responsible sourcing/manufacturing", "1.5", "About This Report", "UN Global Compact Index", "NormalParagraphStyle_116", "Human Rights", "Principle 1: Businesses should support and respect the protection of internationally proclaimed human rights; and", "Our People, Human Rights, \nResponsible Sourcing", "Principle 2: make sure they are not complicit in human rights abuses.", "Our People, Human Rights, \nResponsible Sourcing", "NormalParagraphStyle_121", "Labor", "Principle 3: Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining;", "Our People, Responsible Sourcing", "Principle 4: the elimination of all forms of forced and compulsory labor;", "Our People, Responsible Sourcing", "Principle 5: the effective abolition of child labor; and", "Our People, Responsible Sourcing", "Principle 6: the elimination of discrimination in respect of employment and occupation.", "Our People, Responsible Sourcing", "NormalParagraphStyle_130", "Environment", "Principle 7: Businesses should support a precautionary approach to environmental challenges;", "Environmental Sustainability", "Principle 8: undertake initiatives to promote greater environmental responsibility; and", "Environmental Sustainability, \nResponsible Sourcing", "Principle 9: encourage the development and diffusion of environmentally \nfriendly technologies.", "Environmental Sustainability", "NormalParagraphStyle_137", "Anti-corruption", "Principle 10: Businesses should work against corruption in all its forms, including \nextortion and bribery.", "mcitizen@microsoft.com", "This 2015 Microsoft Citizenship Report explains our policies, program, and performance on our material environmental, social, and governance (ESG) issue areas as well as how we address other important corporate responsibility issues. As you read this report, we welcome your unique perspective about the issues you expect to see addressed in the future. Please email your comments to \n", "online GRI G4", "This report contains Standard Disclosures from \nthe Global Reporting Initiative’s G4 Sustainability Reporting Guidelines, which we used to prepare this report. Please see our \n", "Ethical Business Conduct and Governance", "2", "Link_111", "Our Approach", "Link_112", "Commitment to Ethics and \nStandards of Business Conduct", "Link_113", "Corporate Governance", "Link_114", "Public Policy Engagement", "Link_115", "FY15 Progress and FY16 ", "2.1", "2.2", "Our Approach", "Commitment to Ethics and \nStandards of Business Conduct ", "Building a fabric of trust is paramount to realizing our mission to empower every person and every organization on the planet to achieve more. This means winning and preserving the trust of our customers, partners, and governments around the globe. We work to build and maintain trust through a shared commitment to ethical behavior and by acting with integrity in everything we do.", "Microsoft regularly interacts with customers, partners, competitors, shareholders, suppliers, representatives, regulatory agencies, and government officials. We are committed to engaging all of these groups in a respectful, ethical manner and in compliance with all legal requirements.", "Standards of Business Conduct", "Microsoft’s \n", "Anti-Corruption Policy for Representatives", "Microsoft’s Standards of Business Conduct and \n", "LBody_25", "Calling a toll-free telephone integrity hotline that is staffed 24 hours a day, 7 days a week by a third-party vendor (operators are available ", "LBody_26", "Submitting an online report through a publicly available website operated by the vendor (the landing page for the site is in 16 languages and the online reporting tool is in 37 languages).", "buscond@microsoft.com", "Emailing the Office of Legal Compliance \ndirectly at \n", "LBody_28", "Emailing, calling, or faxing the ", "2.2", "Commitment to Ethics and \nStandards of Business Conduct ", "Example of Microsoft Guidance \nto Employees on Making Ethical Decisions", "We expect you to be well informed and exercise good judgment when making business decisions for Microsoft. Before making a business decision, ask yourself the following questions:", "If you cannot answer “yes” or you are not sure, do not make the \ndecision or take the action until you get additional help and guidance.", "2.2", "Commitment to Ethics and \nStandards of Business Conduct ", "2.3", "Corporate Governance", "Role and Structure of \nthe Board of Directors ", "Highlights of Corporate Governance Practices 1", "Annual review of independence of board", "Yes ", "Separate chairman and CEO", "Yes", "Independent chairman", "Yes", "Charters for board committees", "Yes", "Independent audit, governance and nominating, and compensation committees", "Yes", "Compensation consultant independence policy", "Yes", "Independent directors hold meetings without management present", "Yes", "Annual board elections", "Yes", "Directors elected by the vote of a majority of votes cast in uncontested elections", "Yes", "Annual board and committee evaluations", "Yes", "Annual individual director evaluations", "Yes", "Director stock ownership and \nholding requirements", "Yes", "Executive stock ownership and \nholding requirements", "Yes", "Corporate governance guidelines approved \nby board", "Yes", "Board orientation and education program", "Yes", "Footnotes_0", "1\tOur Corporate Governance Fact Sheet is available online for additional information.", "2.3", "Corporate Governance", "Shareholder Engagement ", "We seek to proactively provide investors with \ncorporate governance information through diverse communications, including a director video interview series and direct communications from independent members of our board to shareholders. In 2009, we began \n", "Our board video series, Microsoft on the Issues blogs, and annual letter from the Governance and Nominating Committee of the board are a few examples of our investor outreach efforts. With over 3.4 million shareholders, these are examples of one-to-many communications that provide the scale to reach all of our shareholders. Our Investor Relations \n", "Shareholder Outreach and Our Corporate Governance Cycle", "Microsoft believes that effective corporate governance should include regular, constructive conversations with our shareholders. We actively engage with our shareholders as part of our annual corporate governance cycle described below. ", "2.4", "Public Policy Engagement", "Principles for Engagement in the Public Policy Process in the United States", "Microsoft has adopted \n", "Political Engagement section", "The \n", "2.5", "FY15 Progress and FY16 Goals", "Progress Against FY15 Goals", "FY16 Goals", "“Proxy Access for Director Nominations” ", "Our annual corporate governance cycle begins with reviewing governance best practices, regulatory developments, and our own policies and practices. This analysis informs the annual update of our governance framework and policies. Acting in line with Microsoft’s long-standing corporate governance philosophy, in August 2015 the Board adopted a new \n", "LBody_29", "Advancing a project to simplify policies and make it easier for employees to find and use policies.", "LBody_30", "Launching a campaign to increase employee knowledge and use of the Microsoft ethics hotline and escalation processes and to emphasize Microsoft’s zero tolerance policy for retaliation.", "LBody_31", "Continuing to enhance our corporate governance principles and policies to serve the interests of our shareholders and other stakeholders.", "LBody_32", "Continuing to implement new regulatory and disclosure requirements adopted under the Dodd-Frank Wall Street Reform and Consumer Protection Act.", "Our People", "Link_124", "Our Approach", "Link_125", "Compensation and Benefits", "Diversity and Inclusion", "Global \n", "Link_127", "Training and Development", "Link_128", "Employee Wellness and \nOccupational Health and Safety", "Link_129", "FY15 Progress and FY16 Goals", "3", "3.1", "Our Approach", "Perhaps the most important driver of our success is culture. We fundamentally \nbelieve that we need a culture founded in a growth mindset. It starts with a belief that everyone can grow and develop; that potential is nurtured, not predetermined; and that anyone can change their mindset. Our leadership is focused on bringing out the best in people, so that everyone is bringing their “A game” and finding \ndeep meaning in their work.", "Customer-obsessed. We learn about our customers and their businesses with a beginner’s mind and then bring solutions that meet their needs. We look to learn from the outside and bring that knowledge into Microsoft, while still innovating to surprise and delight our users.", "Diverse and inclusive. The world is diverse. We serve everyone on the planet by representing everyone on the planet. We seek to be open to learning our own biases and changing our behaviors so we can tap into the collective power of everyone at Microsoft. We don’t just value differences, we seek them out and invite them in. And as a result, our ideas are better, our products are better, and our customers are better served.", "One Microsoft. We are a family of individuals united by a single, shared mission. We build on the ideas of others and collaborate across boundaries to bring the best of Microsoft to \nour customers as one. ", "2\tThose ILO principles are freedom of association and the effective recognition of the right to collective bargaining; elimination of all forms of forced or compulsory labor; effective abolition of child labor; and elimination of discrimination in respect of employment and occupation.", "3.1", "Our Approach", "Employee Poll Results", "Indicator", "FY13", "FY14", "FY15", "Employee response rate", "89%", "87%", "84%", "Employees who feel proud to work at Microsoft", "89%", "90%", "90%", "Employees who feel they are treated with dignity \nand respect by their managers", "93%", "93%", "92%", "Employees who would recommend Microsoft \nas a great place to work", "85%", "86%", "84%", "Employees who feel their workgroup \nvalues diverse opinions", "86%", "88%", "88%", "3.2", "Compensation and Benefits", "Industry-leading health insurance coverage in the US with no employee premiums; and best-in-class medical and dental coverage in which Microsoft funds eligible employees’ Health Savings Account for tax-free savings for current or future medical expenses.", "Family benefits including health coverage for spouses, dependents, and domestic partners; subsidy for nearby childcare programs and back-up care for children, adults, and elders; Flexible Spending Accounts for healthcare and childcare; onsite lactation facilities; and adoption assistance and adoptive parent leave.", "Voluntary retirement savings plans, including plans in which the company makes contributions (such as 401(k) Plan matches for US employees of 50 cents on every dollar up \nto 6 percent of employee contributions). ", "Employee Stock Purchase Plan offering employees discounted shares of \nMicrosoft stock.", "Life insurance and accident insurance.", "Family and medical leave programs, including paid and unpaid maternity and paternity leave programs and personal and compassionate leave, subject to local laws. ", "Paid time off (vacation and sick days) and paid sabbaticals for qualifying employees.", "Flexible work programs, including flexible schedules, telecommuting, and \njob-sharing options.", "Voluntary benefits including additional disability insurance and group legal coverage.", "Employee discounts and friends and family discounts for Microsoft products. ", "Discount programs for shopping, dining, \nand travel.", "Commute options, including free or subsidized mass transit tickets, access to free employee shuttles, and on-campus bike shops and \nsecure storage. ", "Education assistance for eligible employees.", "Building an Inclusive and Engaging Culture", "3.3", "Global Diversity and Inclusion", "3.3", "Global Diversity and Inclusion", "For more than a decade we have championed DigiGirlz, now part of the Microsoft YouthSpark initiative, which gives girls aged 14 to 18 the opportunity to learn about careers in technology, connect with Microsoft employees, and participate in hands-on computer and technology workshops. DigiGirlz programs now span 16 countries and have reached 26,000 participants. A key sign that this program is having a positive impact is that some of the early participants have now graduated from college and joined Microsoft as employees. ", "Blacks at Microsoft, an Employee Resource Group, hosts an annual Minority Student Day that provides local area high school students from underrepresented ethnic backgrounds with information about the tools, resources, and career opportunities that are available to them in information technology. It also awards scholarships to high school seniors and connects recipients with mentors throughout their college careers. The program has been successful in helping graduates find employment at Microsoft.", "We’ve recently expanded our Explore Microsoft 12-week summer internship program that strives to attract women and minorities into technical fields and to Microsoft. It is specifically designed to expose first- and second-year college students to software development and encourage students to pursue degrees in this and other related fields of study.", "Our involvement with Code.org has enabled us to reach 52 million youth in the US in just the past 18 months, and through our TEALS program we reached 6,000 students in 131 high schools during the 2014–2015 school year.", "3.3", "Global Diversity and Inclusion", "Global Diversity amp; Inclusion website", "Our emphasis on diversity is not purely a conversation about the numbers—it is as much a focus on our attitudes and behaviors as leaders that drive the numbers. That being said, it is important that we track and report on our diversity data—which we do quarterly. While we have publicly shared our workforce data since 2006, in the fall of 2014 we began sharing even more specific data relative to our demographics via our \n", "3.3", "Global Diversity and Inclusion", "FY15 Reported Ethnicity Breakout (US Employees) 3 ", "Global Diversity amp; Inclusion website", "In addition to the data presented here, you can see our full EEO-1 data and further breakdowns of our workforce diversity in tech and non-tech positions at our \n", "NormalParagraphStyle_197", "Women in the Global Microsoft Workforce ", "FY13", "24%", "FY14", "28%", "FY15", "28%", "NormalParagraphStyle_205", "Minorities in the US Microsoft Workforce ", "FY13", "38%", "FY14", "39%", "FY15", "41%", "NormalParagraphStyle_209", "Women and US Minorities \nin Senior Executive Positions ", "FY13", "22%", "FY14", "27%", "FY15", "30% ", "NormalParagraphStyle_217", "Women and US Minorities \non the Board of Directors", "FY13", "33%", "FY14", "40%", "FY15", "40%", "EEO-1 report", "3\tData as of June 30, 2015. Gender and ethnicity totals do not include unknown. Denominators include unknown. Gender data are global, ethnicity data are US only. Additional information can be found in our \n", "3.4", "Training and Development", "We believe that everyone can grow and develop; that potential is nurtured, not pre-determined; and that anyone can change their mindset. To support our growth mindset culture, we offer a diverse range of learning and development opportunities, including trainings available in the classroom, online, and through videos, mobile apps, podcasts, and other formats in multiple languages, to meet the learning needs of our employees around the world. We believe training is not limited to formal instruction and our training philosophy focuses on providing the right learning, at the right time, in the right way.", "91 percent of all employees were satisfied with the knowledge they gained and could apply to their job immediately with our formal training.", "Our employees spent an average of 26 hours in formal training. ", "3.5", "Employee Wellness and Occupational Health and Safety", "Microsoft is committed to supporting our employees’ well-being with \ncomprehensive benefits to help employees maximize their physical, \nfinancial, and social wellness.", "The Microsoft Ergonomics Program, offering employees ergonomic assessment and training programs and special furniture, equipment, and software for medical needs.", "The Microsoft CARES employee assistance program, offering free access to services including personal and family counseling, stress management, and referrals for child/elder care.", "Fitness benefits that fund gym memberships or fitness-related equipment and activities and onsite recreational and fitness opportunities.", "Free onsite “Know Your Numbers” health screening events, providing employees and their adult dependents with screening for risks of heart disease, diabetes, high cholesterol, and high blood pressure as well as onsite mammography screenings.", "Healthy dining options, including a new Real Easy Wellness labeling system used in all Microsoft cafes with color coding to flag healthier and less healthy options.", "Access for Microsoft employees and their dependents to weight management, \ntobacco cessation, and chronic disease management programs.", "An onsite health clinic at our Redmond, Washington headquarters campus, offering comprehensive health and wellness services and clinics at some other locations.", "3.6", "FY15 Progress and FY16 Goals", "FY16 Goals", "Progress Against FY15 Goals", "LBody_68", "Recruiting and developing talent with world-changing capabilities.", "LBody_69", "Leading the culture transformation toward a growth mindset and helping drive behaviors to support the cultural attributes of diversity and Inclusion, customer obsession, One Microsoft, and making a difference.", "LBody_70", "Making Microsoft an exceptional place to work through rewards, work environment and perks, and a clear employee value proposition. ", "LBody_71", "Driving transformational leadership by elevating the value, accountability, and impact of leadership at Microsoft, including defining and driving leadership attributes that align to culture.", "LBody_72", "Helping Microsoft’s employees achieve more by transforming HR through data, technology, process excellence, and investment in our people.", "Empowering Communities", "Link_133", "Our Approach", "Link_134", "Microsoft YouthSpark", "Link_135", "Technology for Good", "Link_136", "Humanitarian and \nDisaster Response", "Link_137", "Employee Giving and \nVolunteerism", "Link_138", "FY15 Progress and FY16 Goals", "4", "4.1", "Our Approach", "Total Microsoft Giving 4 ", "4\tTotals are rounded to the nearest million.", "4.2", "Microsoft YouthSpark", "Microsoft YouthSpark is a global company-wide initiative to use the power of technology to connect youth around the world with education, employment, and entrepreneurship opportunities. We launched YouthSpark in 2012 with the specific goal of creating opportunities for 300 million youth by 2015. In FY15 we created opportunities for over 80 million youth and met our three-year goal, creating opportunities for more than 307 million youth in total. Going forward, we will continue our YouthSpark initiative with a sharpened focus on increasing access for all youth to computer science education on a global scale. The following are just a few of the programs that comprise YouthSpark.", "The Anupdip Foundation for Social Welfare’s DREAM for Women program, which establishes women-run co-operatives in rural India and provides them technology and business \nskills training.", "The Center for Digital Inclusion’s 68 YouthSpark Centers across Brazil, Colombia, and Mexico, which provide technology and business skills trainings to help youth increase their opportunities for further education, employment, and entrepreneurship.", "Silatech’s Youth Works Employment Initiative, a three-year program to empower one million Arab youth through training, job placement, and self-employment resources.", "Junior Achievement’s Youth Enterprise Europe program that provides computer science and entrepreneurial educational trainings in 17 European countries.", "Code.org and the Hour of Code, which have introduced millions of K–12 students to computer science education with a particular focus on increasing participation by women and underrepresented students of color.", "4.2", "Microsoft YouthSpark", "4.3", "Technology for Good ", "NormalParagraphStyle_233", "Microsoft In-Kind Donations \n(Fair Market Value [FMV] of Software and Hardware Donations)", "Year", "Microsoft In-Kind Donations \n($ FMV)", "Number of Nonprofits Receiving Software and Hardware Donations", "Number of Nonprofits Receiving Office 365 for Nonprofits 5", "FY15", "$922.0 million", "84,155", "36,189", "FY14", "$948.6 million", "86,399", "11,455", "FY13", "$794.7 million", "70,286", "Microsoft helps build nonprofits’ capacity to use technology to be more efficient, effective, and innovative in doing their important work. In addition, in FY15 Microsoft donated software, services, and hardware—worth $922 million—to more than 120,000 nonprofit organizations around the globe.", "Footnotes_2", "5\tSome organizations receiving Office 365 Nonprofit services may have also received donations of Microsoft software and therefore may be counted in both columns.", "4.4", "Humanitarian and Disaster Response", "In times of disaster, and to prepare for those times, Microsoft and our partners contribute resources and technology solutions to assist governments and humanitarian organizations in their emergency response efforts. Microsoft’s \nGlobal Disaster Response Team includes experts from Microsoft Operations, Services, and Citizenship and Public Affairs to quickly deploy Microsoft technologies and technical assistance to customers, communities, governments, and nonprofits in the wake of natural disasters. The team also works to help organizations make technology systems more resilient to proactively prepare for disasters. We also help governments and nonprofits quickly identify and deploy the right technology to address the unique needs of a disaster situation. ", "Disaster Response Program ", "For more information, see our \n", "4.5", "Employee Giving and Volunteerism ", "Employee Giving and \nCompany Match Donations", "The foundation of all of our efforts \nto serve communities is the passion \nof our employees. ", "NormalParagraphStyle_253", "US Volunteerism 7 ", "Year", "Employees", "% of US Workforce", "Hours Contributed", "FY15", "8,519", "14.3%", "486,004", "FY14", "7,144", "11.7%", "456,365", "FY13", "5,341", "10.8%", "430,162", "4.6", "FY15 Progress and FY16 Goals", "FY16 Commitments", "Progress Against FY15 Goals", "Goal: Meeting our YouthSpark target of empowering 300 million youth to imagine and realize their full potential through Microsoft YouthSpark between 2012 and 2015. \n", "LBody_84", "Donating Microsoft Cloud Services to 50,000 nonprofits.", "LBody_85", "Reaching 3.5 million users of our Office 365 Nonprofit ", "LBody_86", "Creating access to learning computing for 10 million youth.", "\tfree offering. ", "Human Rights", "Link_140", "Our Approach", "Link_141", "Privacy and Data Security", "Link_142", "Global Network Initiative", "Link_143", "Working to Protect the Rights \nof Vulnerable Populations", "Link_144", "Accessible Technology", "Link_145", "FY15 Progress and FY16 Goals", "5", "5.1", "Our Approach", "Building on these fundamental commitments, Microsoft was among the first companies to align our human rights work with the UN Guiding Principles on Business and Human Rights released in 2011. \n", "Collaborated with groups such as the Aspen Institute’s Business and Society Program, The Conference Board, International Corporate Governance Network, and World Economic Forum to share best practices for business to address human rights issues. ", "Hosted a series of multi-stakeholder workshops on business and human rights in the United Kingdom, Brussels, and Central Europe. ", "Sponsored and participated in RightsCon Southeast Asia, a summit on defending digital rights of Internet users which attracted participants from NGOs, business, and governments from 50 countries. ", "Convened a range of events including roundtables at the World Economic Forum Annual Meeting in Davos on LGBT equality and on government surveillance and meetings with institutional investors and corporate lawyers to raise awareness and understanding of the UN Guiding Principles.", "5.1", "Our Approach", "5.2", "Privacy and Data Security", "Microsoft Privacy Statement", "In our ongoing effort to give customers meaningful data about when and how we collect and use personal data, in June 2015 we updated the Microsoft Services Agreement to provide one place to understand the privacy protections in place for most of Microsoft’s consumer services, including Bing, Cortana, OneDrive, Outlook.com, Skype, and Xbox Live. At the same time, we updated the \n", "5.2", "5.3", "Global Network Initiative", "Privacy and Data Security", "5.4", "Working to Protect the Rights of Vulnerable Populations", "online safety resources", "We promote online safety broadly across the Internet as well. Microsoft has a near 20-year history making online safety resources \navailable to children and their parents. In FY15, \nwe enhanced our existing materials with new interactive and engaging \n", "cloud service", "These and other activities follow Microsoft’s work six years ago with Dartmouth College to develop PhotoDNA, a free technology that helps identify and remove child sexual abuse images from among the billions of photos on the Internet. PhotoDNA has now become an industry best practice for combating child sexual abuse images and is used by NGOs, law enforcement, and other leading Internet companies like Facebook. At Microsoft, we use PhotoDNA to help disrupt the spread of child sexual abuse images through our Bing, OneDrive, and Outlook.com services. This year Microsoft made PhotoDNA available as a \nfree \n", "5.5", "Accessible Technology", "As a reflection of our commitment to human rights and to our billions of \nusers around the world, Microsoft seeks to provide products and services \nthat empower people across a broad range of abilities, cultures, languages, \nand levels of economic development. ", "Microsoft Accessibility", "We are continually working to raise the awareness of accessibility issues in the technology industry. The Microsoft Accessibility Developer Center provides guidance, tools, and technologies for developing accessible applications and web content. Our tools and guides help governments, schools, businesses, and organizations integrate technology for individuals with disabilities. Microsoft Research and product teams also collaborate with disability experts to unlock new uses for technologies that can dramatically benefit people with disabilities, such as helping individuals with paralysis communicate with their families using eye gaze technology and speech synthesizers on the Microsoft Surface. For more information, see the \n", "Vision impairments", "Dexterity and mobility impairments", "Hearing impairments", "Learning impairments", "Language and communication impairments", "Age-related impairments ", "5.6", "FY15 Progress and FY16 Goals", "Progress Against FY15 Goals", "FY16 Goals", "Continuing ongoing review of our policies and practices to ensure we are meeting our commitments to human rights and to perform ongoing assessments of the human rights impacts of our operations. \n", "Reviewing current approaches for using the power of technology to combat human trafficking and identifying new opportunities for action.\n", "Further strengthening our commitment to addressing the needs of people with disabilities, including reading and writing literacy tools and deeper exploration of how innovations such as gesture control, speech recognition, and touch can foster accessibility.", "Responsible Sourcing and Manufacturing", "Link_151", "Our Approach", "Link_152", "Social and Environmental \nAccountability in Our Device\nand Supply Chain", "Link_153", "Responsible Sourcing \nof Raw Materials", "Link_154", "Responsible Sourcing \nwith Indirect Suppliers", "Link_155", "FY15 Progress and FY16 Goals", "6", "6.1", "6.2", "Our Approach", "Microsoft Production Supplier Locations", "Footnotes_4", "8\tIn July 2015 (after the end of FY15) Microsoft announced a restructuring of our phone business that will occur in FY16. Our 2016 Citizenship Report will address that restructuring.", "6.2", "SEA Supplier Engagement Elements", "6.2", "6.2", "SEA Audit and Assessment Results 9", "Management Systems", "FY13", "FY14", "FY15", "FY15", "New\nSuppliers", "Existing Suppliers", "New\nSuppliers", "Existing Suppliers", "Labor and Ethics \nMgt Systems", "0", "0", "0", "0", "0%", "0%", "Environment, Health amp; Safety Mgt Systems", "0", "0", "0", "0", "0%", "0%", "Environment", "FY13", "FY14", "FY15", "FY15", "New\nSuppliers", "Existing Suppliers", "New\nSuppliers", "Existing Suppliers", "Environmental Permits \nand Reporting", "0", "0", "0", "1", "0%", "1%", "Pollution Prevention and Resource Reduction", "0", "0", "0", "0", "0%", "0%", "Hazardous Substances", "0", "2", "0", "0", "0%", "0%", "Wastewater and Solid Waste", "2", "1", "0", "0", "0%", "0%", "Air Emissions", "0", "0", "0", "0", "0%", "0%", "Product Content \nRestrictions", "0", "0", "0", "0%", "0%", "NormalParagraphStyle_364", "Ethics", "Business Integrity", "0", "0", "0", "0", "0%", "0%", "No Improper Advantage", "0", "0", "0", "0", "0%", "0%", "Disclosure of Information", "1", "0", "1", "0%", "1%", "Protection of Intellectual Property", "0", "0", "0", "0", "0%", "0%", "Fair Business, Advertising, and Competition", "0", "0", "0", "0%", "0%", "Protection of Identity", "0", "0", "0", "0", "0%", "0%", "Responsible Sourcing of Minerals", "0", "0", "0", "0%", "0%", "Privacy", "0", "0", "0", "0%", "0%", "Non-Retaliation", "0", "0", "0", "0%", "0%", "Category/Provision", "Distribution by % \nof Suppliers Audited 10", "Labor", "FY13", "FY14", "FY15", "FY15", "New\nSuppliers", "Existing Suppliers", "New\nSuppliers", "Existing Suppliers", "2", "6", "1", "1", "1%", "1%", "Child Labor Avoidance 12", "1", "3", "6", "3", "7%", "3%", "Working Hours 13", "1", "2", "0", "1", "0%", "1%", "Wages and Benefits 14", "8", "14", "4", "2", "3%", "2%", "Humane Treatment", "1", "3", "0", "0", "0%", "0%", "Non-Discrimination 15", "3", "6", "1", "0", "1%", "0%", "Freedom of Association", "0", "0", "0", "0", "0%", "0%", "NormalParagraphStyle_485", "Health and Safety", "High-Risk Health amp; Safety", "1", "0", "1", "0", "1%", "0%", "Occupational Safety", "1", "0", "2", "1", "2%", "1%", "Emergency Preparedness and Response", "0", "0", "0", "0", "0%", "0%", "Occupational Injury \nand Illness", "0", "0", "0", "0", "0%", "0%", "Industrial Hygiene", "2", "2", "2", "0", "1%", "0%", "Physically Demanding Work", "0", "0", "0", "0", "0%", "0%", "Machine Safeguarding", "0", "0", "0", "0", "0%", "0%", "Dormitory and Canteen", "0", "0", "0", "0", "0%", "0%", "Category/Provision", "Total Critical/\nSerious Findings", "22", "40", "17", "10", "6.2", "SEA Audits and Assessments", "Creating a factory-specific curricula and delivery model for our China YouthSpark Information Technology (IT) skills training program. By the end of the pilot, December 2013 to December 2014, a total of 6,731 workers (4,451 online and 2,280 classroom) \thad taken the class.", "Providing reproductive health education programs at all of our Tier 1 suppliers through the HERproject (Health Enables Returns) run by Business for Social Responsibility. In FY15, we trained a total of 7,685 workers, bringing the total number of workers trained since we launched in FY12 to 179,598 workers.", "Piloting line leader capability training to improve front-line supervisors’ communication skills and management effectiveness. The pilot program trained 30 line leaders, each responsible for on average 30 workers (in total affecting 900 workers).", "Rolling out training in parenting programs to support migrant parent workers who may be far away from their families. This program \nhelps the migrant parents build and maintain meaningful relationships with their children to ensure that they are not only materially looked after, but emotionally as well. In FY15, the nine suppliers rolled out the training to all their workers, especially targeting their migrant workers. By the end of June 2015, a total of 1,600 workers participated in this training.", "Safety Culture", "EHamp;S Professionals and Senior Management Capability Improvement", "EHamp;S Employee Participation", "Risk Behavior Change", "EHamp;S Standardization", "Risk Assessment", "Chemical Safety and Management", "Line Manager EHamp;S Skills Improvement", "Safety Officer Certification for EHamp;S Staff", "Prevention of Occupational Disease", "Effective Water Management", "6.2", "6.3", "Responsible Sourcing of Raw Materials ", "Responsible Sourcing of Raw Materials", "Microsoft’s commitment to the responsible production of our hardware and packaging extends to the raw materials that go into them. In 2014, we formalized our values and approach around upstream responsible sourcing through our \n", "Responsible Sourcing webpage", "More detailed results of our conflict minerals due diligence process and findings are available in our latest Conflict Minerals Report, available on our \n", "6.4", "Responsible Sourcing with Indirect Suppliers", "Global Reporting Initiative", "Requirements to issue annual Corporate Social Responsibility reports that include metrics drawn from the \n", "Microsoft Spending with Minority-, Disabled-, Veteran-, and Woman-Owned Businesses", "Supplier Diversity ", "Microsoft has a long-standing and strong commitment to source from historically disadvantaged groups. Our Procurement team is committed to increasing our spending with diverse suppliers as part of our Supplier Diversity Program. In FY15, Microsoft spent $2.3 billion with minority-, disabled-, veteran-, and woman-owned businesses, placing Microsoft in the top 20 companies globally for spending with diverse suppliers. We also have focused programs in place to encourage diversity among the law firms we do business with and to increase the diversity of banks and financial institutions we use.", "6.4", "Responsible Sourcing with Indirect Suppliers", "Supplier Capacity Building and Partnerships", "Microsoft YouthSpark", "Through the \n", "business cases", "In a separate initiative, in FY15 we continued our collaboration with the Rockefeller Foundation to research and promote best practices in “Impact Sourcing” with suppliers that proactively seek to provide work and training opportunities to high potential but disadvantaged individuals. Several \nof our suppliers have embraced this concept and partnered with us in a multi-stakeholder group \nto develop Impact Sourcing success metrics, and \nalso helped developed \n", "6.5", "FY15 Progress and FY16 Goals", "FY16 Strategic Goals", "Progress Against FY15 Goals", "LBody_126", "Broadening the scale of our SEA supply chain programs, such as the SEA Academy, Model Factory Program, Worker Grievance reporting, Labor and EHamp;S capability building, to continue to enhance worker living and working conditions. ", "LBody_127", "Increasing our ongoing investment in improving the management system capabilities of low-performing, high-risk Tier 2 factories by providing targeted SEA consulting and training.", "LBody_128", "Continuing to strengthen engagements and work collaboratively with NGOs and the electronics and other industry sectors to advance the goals of the Microsoft Policy on Responsible Sourcing of Raw Materials, including further progress addressing conflict minerals.", "LBody_129", "Expanding consideration of the sustainability performance of our indirect suppliers in our procurement decisions and supplier awards.", "Environmental Sustainability", "7", "Link_161", "Our Approach", "Link_162", "Products", "Link_163", "Our Business Practices ", "Link_164", "Water and Waste", "Link_165", "Partnerships", "Link_166", "FY15 Progress and FY16 Goals", "7.1", "Our Approach", "Microsoft’s commitments to environmental sustainability are articulated in our \n", "Environmental Principles, Policies, and Management", "7.2", "Products", "We are committed to delivering products, solutions, and services that help organizations boost efficiency and minimize environmental impact.", "cloud services", "As a carbon neutral cloud services provider, Microsoft offers organizations a carbon-efficient and carbon neutral alternative to running their own private datacenters. Moving to Microsoft \n", "Microsoft Azure", "With \n", "Windows Server and Windows Azure", "With the increasing number of interconnected devices—from thermostats, appliances, and fixtures, to equipment, vehicles, and charging stations—all generating massive sets of data, big data is changing what is possible with sustainability. Microsoft is investing to help customers manage smart resources using big data through tools for \n", "Skype", "Microsoft Office 365 solutions support the new world of work by streamlining communications and collaboration and thereby reducing the need for business travel and commuting—while delivering all the environmental benefits of cloud computing. \n", "Buildings, infrastructure, and planning. Microsoft partners are using both design and embedded technology to lower the energy consumption and improve the performance of buildings. By combining existing systems with cloud-based analytics and business intelligence capabilities, buildings can be smarter and more efficient, and save about 10 percent of energy costs per year.", "Energy and water. By using digital technology to integrate and manage distributed energy supply and demand data, Microsoft partners are working to improve the reliability, security, and efficiency of the electric system, as well as using technology to measure, manage, and report on carbon and other environmental impacts.", "Transportation. Through software, Microsoft partners are helping to improve the design and operation of transport networks and run real-time data systems that can facilitate cleaner and more efficient transport choices.", "7.2", "Products", "7.2", "Products", "7.3", "Our Business Practices", "internal carbon fee ", "software development labs, offices, business air travel, and (as of July 1, 2015) Microsoft-owned manufacturing operations. Our carbon neutral strategy hinges on company-wide accountability, achieved through an \n", "cascaded globally to our business groups", "whitepaper", "In April 2015 Microsoft released a \n", "CDP website", "We have a longstanding commitment to \ntransparently disclosing our carbon footprint \nand have voluntarily reported our carbon footprint through CDP (formerly the Carbon Disclosure Project) since 2004. Data on our carbon emissions are available on the \n", "In order of preference, we seek to use renewable energy by:", "7.3", "Our Business Practices", "7.3", "Our Business Practices", "The following graphs and charts detail the highlights of our most recent filing with CDP and trends in our greenhouse gas emissions and energy use.16", "NormalParagraphStyle_565", "Carbon Offsets", "Total Purchase of Carbon Offsets, mtCO2e", "396,531", "Total Direct GHG Emissions balanced by Carbon Offset Purchases, %", "100%", "17%", "Total Sale of Carbon Offsets, mtCO2e", "0", "Total Use of Carbon Sequestration/Capture", "0", "NormalParagraphStyle_577", "Greenhouse Gas (GHG) Emissions", "NormalParagraphStyle_578", "Direct Emissions", "Gross Scope 1 Emissions, mtCO2e", "85,188", "NormalParagraphStyle_581", " Gross Scope 1 Emissions, by GHG type, mtCO2e", " CO2", "72,043", " CH4", "22", " N2O", "137", " HFCs", "12,986", "Scope 1 Emissions Balanced by Carbon \nOffset Purchases, mtCO2e", "(85,188)", "Net Scope 1 Emissions, mtCO2e", "0", "NormalParagraphStyle_594", "Indirect Emissions", "Gross Scope 2 Emissions, mtCO2e", "1,521,370", "Scope 2 Emissions balanced by Green Power Purchases, mtCO2e", "(1,520,145)", "Scope 2 Emissions balanced by Carbon Offset Purchases, mtCO2e", "(1,225)", "Net Scope 2 Emissions, mtCO2e", "0", "NormalParagraphStyle_603", "Indirect Emissions (continued)", "NormalParagraphStyle_604", " Gross Scope 3 Emissions, mtCO2e", " Purchased Goods and Services 17", "8,000,000", " Capital Goods 17", "200,000", " Fuel- and Energy-Related Activities \n (not included in Scope 1 or 2)", "283,234", " Upstream Transportation and Distribution 17", "100,000", " Waste Generated in Operations", "2,441", " Downstream Leased Assets", "2,837", " Business Air Travel", "310,117", " Business Travel, other", "5,152", " Scope 3 Emissions, Business Air Travel, \n balanced by Carbon Offset Purchases, \n mtCO2e", "(310,117)", " Net Scope 3 Emissions, Business Air Travel, \n mtCO2e", "0", "NormalParagraphStyle_625", "Energy", "Total Energy Use, MWh 18", "3,570,438", "NormalParagraphStyle_628", " Total Energy Use by Type, MWh", " Fuel", "319,313", " Electricity 18", "3,240,620", " Heat", "0", " Steam", "1,410", " Cooling", "9,095", "Renewable Energy Purchased or Generated and Consumed, MWh 18", "3,240,620", "Renewable Energy Purchased or Generated and Consumed, % of Total Energy Use", "91%", "NormalParagraphStyle_643", " Renewable Energy Purchased or Generated \n and Consumed by Source, MWh", " Wind", "3,130,592", " Landfill gas", "3,971", " Biomass", "77,100", " Hydro", "28,340", " On-Site Solar PV", "617", "Non-Renewable Energy Use, MWh", "329,818", "Non-Renewable Energy Use, % of Total \nEnergy Use", "9%", "www.microsoft.com/transparencyhub", "16\tNote that because the CDP reporting deadline closes in May before the end of our fiscal year, the most recent CDP carbon footprint \ndata we have available and verified is for FY14, not FY15. We will \ndisclose updated FY15 data before the end of the calendar year at \n", "7.3", "Our Business Practices", "Year-Over-Year \nGreenhouse Gas Emissions 19", "text_38", "Year-Over-Year \nEnergy Use \n", "Footnotes_6", "19\tData provided covers 100% of Microsoft’s global operations and revenues.", "7.4", "Water and Waste", "Waste Disposal Trends (metric tons) 21", "FY14 Water Use by Source 20", "www.microsoft.com/transparencyhub", "20\tThis data covers 65 percent of Microsoft facilities by square footage, including key water using data center operations. Additional details of our water use and previous years’ reports are publicly available in our CDP Water Project filing. As with emissions and energy data, we will disclose updated FY15 water data before the end of the calendar year at \n", "www.microsoft.com/transparencyhub", "21\tData covers 74 percent of Microsoft’s global facilities by square footage. As with emissions and energy data, we will disclose updated FY15 water data before the end of the calendar year at \n", "7.5", "Partnerships", "Microsoft works with governments, policymakers, and NGOs around the world to address key environmental issues that affect our business, employees, and the communities we serve. We are driving policy development and research with a broad range of diverse groups to achieve a more sustainable future. Through Microsoft Research and groups we sponsor, we are working to apply information technology to address large-scale environmental challenges.", "We are a signatory to the Climate Declaration, a nonpartisan statement from the business community developed by Ceres and its Business for Innovative Climate amp; Energy Policy (BICEP) coalition, which notes that “tackling climate change is one of America’s greatest economic opportunities of the 21st century.” ", "We are a founding member of the Digital Energy amp; Sustainability Solutions Campaign (DESSC), a coalition of leading ICT companies and environmental NGOs. DESSC is committed to advancing public policies that help drive sustainable economic growth through ICT-enabled energy efficiency and clean energy innovation.", "Smarter 2030 GeSI", "We serve on the board of the Global e-Sustainability Initiative (GeSI), a collaborative effort between leading IT companies and the United Nations Environment Programme and International Telecommunication Union. Microsoft has played a leadership role in the development of GeSI series of reports on how the ICT can address climate change (Smart 2020, Smarter 2020, and Smarter 2030). The latest \n", "United Nations Environment Programme World Conservation Monitoring Centre", "Scientists at Microsoft Research Cambridge are working with the \n", "LBody_143", "Microsoft Research’s Earth, Energy, and Environment collaboration projects focus on the development and adoption of technologies for scientific visualization and data management—especially technologies that accelerate insight into the environmental and earth sciences.", "7.5", "Partnerships", "7.6", "FY15 Progress and FY16 Goals", "FY15 Goals", "FY16 Goals", "LBody_144", "Continuing to achieve carbon neutrality and net-zero emissions for our datacenters, software development labs, offices, manufacturing facilities, and employee air travel by increasing energy efficiency and investing in renewable energy and carbon offset projects.", "LBody_145", "Further increasing our direct purchases of ", "LBody_146", "Expanding our ecosystem of partners working with Microsoft on sustainability solutions for cities through Microsoft’s CityNext initiative.", "\trenewable energy.", "NormalParagraphStyle_288", "NormalParagraphStyle_313" ]

[ "\n Citizenship at Microsoft_3\n“Nonprofits need powerful \ntools to transform passion into progress. Modern productivity, communication, and collaboration solutions help people drive social change where it’s needed most.” \nKurt DelBene, President, Microsoft Office Division \nEffecting change requires practical tools. Powerful software can \nconnect nonprofits with people and places both near and far, \nwhile also boosting fundraising, improving organization, and helping demonstrate results to stakeholders. By providing access \nto software, hardware, and training services to nonprofits—and \nthose they serve—we’re helping transform lives around the world. \nDonating software to nonprofits worldwide \nSoftware can help nonprofits overcome obstacles and improve \ntheir service to communities. That’s why we donate hundreds \nof millions of dollars in software each year to nonprofits through \nour Technology for Good program. \n•\t Donated software to 33 percent more nonprofits in FY12, \nreaching more than 62,200. \n•\t Increased awareness of our software donation program through “What’s your cause?”—a campaign to spread the \nword to eligible nonprofits. \n•\t Improved access to donated software for nonprofits, cutting \nrestrictions on application timing and number of maximum requests, and expanding eligibility criteria. ", "\n Citizenship at Microsoft_7\n“The best response to disaster is to empower people to connect and collaborate. We provide powerful technologies and human support that make it possible to keep families and communities connected, and speed the arrival of much needed aid. And, \nas we’ve shown in Japan, we extend our \ncommitment beyond the immediate need, supporting rebuilding efforts for months and years afterward.” \nYasuyuki Higuchi, Microsoft Corporate Vice President and President of Microsoft Japan \nProviding assistance in times of need \nWhen disaster strikes, every minute counts. Rescue, relief, and rebuilding efforts depend on fast, accurate communication to make a difference. That’s where we can help. We partner with organizations worldwide, \nusing technology to keep vital information flowing during emergencies. \nWe also provide the support and services our customers need to get their businesses up and running again, helping communities get back to normal as quickly as possible. And, we don’t stop there. We stay in affected communities to help them rebuild over the long term. \nSecond Harvest’s food-donation management system. \n•\t Received Laureate honor from the \n Computerworld Honors Program\na strategic partnership with Esri, a provider of geographic \ninformation systems (GIS) services and analytic knowledge. \n•\t Educated people and organizations—as part of National Hurricane Preparedness Week—about using SkyDrive to secure data and prepare for disaster. \nL_13\ntext_32\nL_14\ntext_33", "\n Our Company_3\nUnited Nations Global Compact \nMicrosoft’s commitment to the \n United Nations Global Compact\nSince endorsing the Global Compact in 2006, we continue to view it as an important guide for Microsoft. The Global Compact’s 10 principles related to human rights, labor, the environment, and anti-corruption align with our company’s business strategies, practices, policies, and operations. Our involvement supports our efforts to demonstrate accountability and ongoing improvement across the broad range of citizenship topics. \nThis 2012 Citizenship Report serves as Microsoft’s annual Global Compact Communication on Progress. The following table describes the location of information about each principle in this report. \nPrinciple 2: make sure that they are not complicit \n Our people uman rights esponsible sourcing\nPrinciple 3: Businesses should uphold the freedom \n Responsible sourcing\nPrinciple 4: the elimination of all forms of forced \n Responsible sourcing\nPrinciple 5: the effective abolition of child labor; and \n Responsible sourcing\nPrinciple 6: the elimination of discrimination in \n Our people esponsible sourcing\nPrinciple 7: Businesses should support a precau-\n Environment\nPrinciple 8: undertake initiatives to promote \n Environment esponsible sourcing\nPrinciple 9: encourage the development and dif-\n Environment\nPrinciple 10: Businesses should work against corrup-\n Responsible sourcing overnance\nThis document is provided “as-is.” Information and views expressed in this document, including URL and other Internet website references, may change without notice. You bear the risk of using it. \nThis document does not provide you with any legal rights to any intellectual property in any Microsoft product. You may copy and use this document for your internal, reference purposes. \nMicrosoft 2012 Citizenship Report _6\n© 2012 Microsoft. All rights reserved. \nMicrosoft, Bing, BizSpark, Dynamics, Microsoft Dynamics CRM Online, Excel, Office 365, Hotmail, Internet Explorer, Kinect, Lync, Mediaroom, MSN, OneNote, PhotoDNA, PowerPoint, SharePoint, Silverlight, SkyDrive, SQL Azure, SQL Server, Visual Studio, Windows, Windows Azure, Windows Intune, Windows Live, Windows Server, Xbox 360, Xbox LIVE, Surface, and Skype are trademarks of the Microsoft group of companies. All other trademarks are property of their respective owners. \n098-117576 ", "\n 3 Serving communities 4 Working responsibly 4 Citizenship governance 5 Setting priorities and\n\n stakeholder engagement 5 External frameworks 6 FY12 highlights and achievements\n\n 8 Our business\n\n 8 Where we are\n\n 8 Engaging our customers and partners\n\n 10 Our products\n\n 11 Investing in innovation\n\n 14 Creating opportunities for youth\n\n 15 Empowering youth through education and technology 16 Inspiring young imaginations 18 Realizing potential with new skills 20 Supporting youth-focused\n\n nonprofits\n\n 23\t Empowering nonprofits\n\n 24\t Donating software to nonprofits\n\n worldwide 26 Providing hardware to more people 28 Sharing knowledge to build capacity 28 Solutions in action\n\n 31 Employee giving\n\n 32 Helping employees make a difference\n\n 36 Humanitarian response\n\n 37 Providing assistance in times of need\n\n 40 Accessibility\n\n 41 Empowering people with disabilities 42 Engaging students with special needs 44 Improving seniors’ well-being", "\n Serving Communities\nJoining forces for kids and families \nSocial innovation increasingly requires social enterprises to collaborate with multiple partners. Developing and sustaining multifaceted relationships with government, corporate partners, and philanthropic \nfunders often requires an initial leap of faith from both not-for-profits and businesses. But the benefits can extend way beyond traditional \nROI measures. \nPlunket is one of New Zealand’s most trusted brands. We’ve been careful to refine our model in terms of building enduring corporate alliances, limiting the number of business partners we align ourselves with. \nWe also have a history of adapting technology to improve health outcomes for children and families. Microsoft’s initial multimillion\ndollar software and services grant in 2008–09 acted as a catalyst for \nPlunket to better use technology as a key enabler. \nTwo years ago, we embarked on our biggest-ever project. PlunketPlus \nis a clinically led, technology-based systems development that’s also \na world first—a single, interoperable electronic health record for \nchildren and families, allowing Plunket Nurses to share key health data in real time with other health professionals and social services. \nThe fit between Plunket and Microsoft is a strong one. With the \nassistance of key Microsoft people, from Redmond to Singapore \nand here in New Zealand, we’ve been able to maximize the benefits \nof this support. \nIt’s a partnership that’s capable of delivering beyond everyone’s expectations, with real potential to scale beyond New Zealand to improve the health and well-being of children and families in other countries. \nMicrosoft 2012 Citizenship Report _2", "\n Citizenship at Microsoft_8\n“Today, people have to adapt to technology. The future lies in technology that automatically adapts to people, so users with a wide range of abilities can see, hear, and use a computer and other devices.” \nRob Sinclair, Chief Accessibility Officer \nEmpowering people with disabilities \nTechnology enriches everyone’s lives—if they have the capability \nto use it. From magnification for people with vision impairments \nto speech recognition for people with limited use of their hands, we create innovative home and work solutions that allow everyone to develop their skills and share their talents with the world. \nFor many people with impaired vision or hearing, or with physical disabilities, accessible technology can have a transformative impact. We build accessibility into many products and services we develop, providing essential computer access to individuals with vision, hearing, dexterity, language, or learning needs. \n•\t Advised businesses, governments, and NGOs on how to make communications tools more accessible through our free Microsoft Accessibility Tools and Training resources for developers, which \nwon the 2011 US Federal Communications Commission (FCC) \nChairman’s Award for Advancement in Accessibility. \n•\t Shared strategies for incorporating accessible technologies into the workplace, helping businesses expand job opportunities for \npeople with disabilities. We partnered with the Assistive Technology \nIndustry Association (ATIA) and the US Department of Labor’s Office of Disability Employment Policy to communicate best \npractices and expertise to ATIA members, customers, and partners. \n•\t Showed Indian government officials how technology can make \npublic information more accessible to people with visual, hearing, and learning impairments. Timed in support of World Disability Day, we unveiled a set of 40 standardized Microsoft \nOffice templates that can be converted into digital talking books \nor Braille documents. ", "Training and development \nOur employees never stop seeking new opportunities to grow. We continually evaluate and evolve our training opportunities to meet \ntheir specific needs. By adapting our programs to meet a variety of \nlearning styles—in the classroom, online, through video, and in other forms—we ensure our employees continue to learn and move their careers forward. \n•\t Increased employee participation in professional training opportunities—more than 3 million hours, up from just over \n2 million in FY11. \n•\t Boosted employee satisfaction for training courses to a rating of 4.37 out of 5 in FY12, up from 4.09 in FY11. \nMicrosoft was inducted into Training magazine’s Top 10 Hall of Fame, which recognizes successful corporate training programs. \n3.05M\n FY12 \n4.37\n4.09\nFY11\nFY11 _2\nTotal employee training Employee rating of training and development hours effectiveness \nOn a scale of 1-5, with 5 being the highest \n1,500+ \nNumber of employees who received tuition assistance \ntext_39", "\n Our Company_1\nOur products \nOur products include operating systems for personal computers (PCs), \nservers, phones, and other intelligent devices; server applications for distributed computing environments; productivity applications; business solution applications; desktop and server management tools; software development tools; video games; and online advertising. We also design and sell hardware including the Xbox 360 gaming and entertainment console, Kinect for Xbox 360, Xbox 360 accessories, and Microsoft PC hardware products. \nBeyond our product portfolio, we offer consulting, product, and solution support services. We also train and certify computer system integrators and developers. Our cloud-based solutions provide customers with software, services, and content through \nthe Internet. Revenue from these technologies mainly flows \nfrom usage fees and advertising. \nExamples of our cloud-based computing services include: \n•\t \n Microsoft Office 365\nand communication solutions, including Microsoft Office, Exchange, \nL\ntext_0", "\n Citizenship at Microsoft_4\nProviding hardware to more people \nto tell their stories by providing consumer video cameras. \n“Microsoft has been a true partner \nin this field. They were there at \nthe beginning, helping foster the community, programs, and services that we deliver. Today, they are still \nhere, helping NTEN and the field redefine the next stage of our work.” \nHolly Ross, Executive Director, NTEN \n978 \nNonprofits worldwide enrolled \nin the refurbished PC program in FY12 \nL_6\ntext_22\nL_7\ntext_23", "“Microsoft’s Internet safety programs are vital to our children, as they’re the generation that will only know life through technology. Our students socialize, play games, communicate, \nand find information through the \nInternet, which puts them at risk. Having an industry leader like Microsoft teach our children how to stay safe online sends a powerful message to our school community.” \nCliona O’Keeffe Our Lady’s Boys National School, Dublin, Ireland \nPrivacy and data security \nAs people spend more time online and store more information in the cloud, the risk of privacy and data security attacks continues to rise. Ten years ago, our chairman Bill Gates launched a company-wide response with the \n Trustworthy Computing\ndevelopment. We continue to find innovative ways to protect our \ncustomers’ privacy and keep their information secure. \n•\t Gave consumers the power to manage their privacy with the Do Not Track setting turned on in Internet Explorer 10 in Windows 8. The feature prevents advertisers from creating targeted ads based \non a consumer’s web surfing habits. \n•\t Revealed how people’s behaviors and attitudes can affect their online reputations with a new survey of 5,000 consumers across the United States, Canada, Germany, Ireland, and Spain. Released in support of the international \n Data Privacy Day\npeople understand how to maintain online profiles and still \nL_29\ntext_49", "used to further its public policy agenda and not the personal \nagenda of individual officers, directors, or employees. \n•\t We do not make corporate contributions to any noncandidate or nonparty political committees organized under section 527 of the Internal Revenue Code, which are formed solely to influence elections. \n•\t No campaign contributions are given in anticipation of, in recognition of, or in return for an official act. \n•\t Reaffirmed our 2010 stance on not making independent political expenditures or electioneering communications, as permitted under the US Supreme Court’s Citizens United ruling. \n•\t For the last calendar year, the Microsoft Political Action Committee (MSPAC) made political contributions totaling $1,085,072. In addition to MSPAC’s contributions, our company as a whole also contributed $151,572 to state and local political campaigns in calendar year 2011. We do not support political candidates or campaigns outside the United States. \nMicrosoft Political Action Committee political contributions \n$1,472,350 \n2010 _0\n$1,085,072 \n2011 \n$887,160 \n2009 _0\nFederal candidate contributions State candidate contributions Non-candidate \ncommittee contributions \nL_42\ntext_62", "Compliance \nBusinesses have a responsibility to operate in full accordance with the law, and we have zero tolerance for failure to adhere to our internal compliance policies and practices. \nOngoing litigation \nNovell, Inc.’s case against us. Novell has appealed this decision. \n•\t As of June 30, 2012, all but three cases under Canadian jurisdiction have been settled. All overcharge class actions in the United States were dismissed or resolved. The only remaining actions are in Canada, where the lead case was dismissed by the appeals court and ruling is now pending before the Canadian Supreme Court. \n•\t For more information, see the Note 17—Contingencies section of our \n 2012 Annual Report\nTraining employees \nL_43\ntext_64\nL_44\ntext_65\nL_45\ntext_66", "Creating opportunities for youth \nGoal: Reach 250 million students and teachers across 115 countries and regions through Partners in Learning, a 10-year, nearly $500 million commitment we’ve made to help education systems. \nTo date, we’ve trained nearly 11 million teachers and school leaders, and reached approximately 207 million students in 119 countries. We’re on track to reach our goal of 250 million by 2013. \nGoal: Increase access to quality 21st-century education through partnerships with governments worldwide. \nWe collaborated with governments through our Shape the Future program to create solutions that connected more than 7 million people globally with relevant and affordable education technologies. \nGoal: Improve teaching practices and educational outcomes in developing countries through partnerships with NGOs. \nAs an example, through our work with the \n British Council\nof education and stakeholders equip schools in six African countries (Ghana, Nigeria, Uganda, Ethiopia, Kenya, and Tanzania) with nearly 100 digital Windows MultiPoint \nserver hubs that serve as ICT training centers for local teachers and students. \n•\t Empowering 100 million youth to imagine and realize their full potential by connecting them with greater opportunities for education, employment, and entrepreneurship through \n Microsoft YouthSpark\n\n See GRI Index for more\nL_5\ntext_20", "1,530,352\n1,502,736 2011 \n2010 \n1,299,356 \n2009 \n1,144,271 \n1,035,385 \n41,649 47,383 40,848 \nCO2 equivalent emissions (metric tons)1 \nScope 1: Direct emissions (on-site emissions) \nScope 2: Indirect emissions (electricity consumption) \nScope 3: Indirect emissions (air travel only) \n2.721B 1.954B ML/year ML/year 2011 2010 \nTotal water usage (1 megaliter = 1 million liters)2 \n1\t This data is provided on a calendar year basis rather than a fiscal year basis to facilitate reporting to the Carbon Disclosure Project. \n2 Our data collection system does not yet track global water use. The number reported here represents approximately 65 percent of our global portfolio by square footage. \nMicrosoft 2012 Citizenship Report _5", "“Microsoft is committed to the fair treatment and safety of workers at manufacturers contracted to our company, and we use a risk-based approach to promote safe and healthy working and living conditions, engaging directly with our suppliers to build their capabilities in these important areas. We have invested heavily in a robust supply chain social and environmental accountability program intended to verify that suppliers meet our Vendor Code of Conduct.” \nBrian Tobey, Corporate Vice President Manufacturing, Supply Chain, Information and Services \nAs a global company with supplier relationships around the world, Microsoft recognizes the importance of working with suppliers committed to responsible business practices. As the foundation of our commitment, all companies doing business with Microsoft must agree to abide by our Vendor Code of Conduct, which sets out our expectations about ethical business practices, employment practices, and compliance with environmental and worker safety requirements. \nWe also share experiences and best practices with our suppliers to encourage them to improve their business practices. We work collaboratively with our suppliers to verify that they are complying with the Vendor Code of Conduct and to enhance their ability to \nfind and fix problems that do sometimes occur. If we find a supplier \nis unwilling to follow the Vendor Code of Conduct or address such problems, we will take—and we have taken—disciplinary action up to and including terminating supplier contracts. There is always room for improvement, but we are encouraged by the cooperation \nwe find among our suppliers and many companies across the \nelectronics industry to tackle existing challenges and address new issues as they arise. \nVendor Code of Conduct \nL_34\ntext_55", "$99.8M \nFY12 \n$93.5M \nFY11 _0\n$84.5M \nFY10 _1\nEmployee giving and company match donations \n431,608 \nVolunteering hours contributed \nUS employee volunteerism \nFY12 _0\nMicrosoft 2012 Citizenship Report _3\nTable_0\nTable_1", "Responsible sourcing _0\nGoal: Increase transparency of our supply chain management. \nWe met with institutional and socially responsible investors and briefed \nnongovernmental organizations concerned with issues such as conflict \nminerals in Africa and the environment in China. \nGoal: Work with hardware suppliers to evaluate the potential use of conflict \nminerals, thereby supporting the technology industry’s ultimate aim \nof developing a conflict mineral–free supply chain. \nWe identify the materials used in our products and ask our hardware suppliers \nto identify the smelters and refineries they use to help identify potential sources of conflict minerals. \nGoal: Developed new practices to promote supplier adherence to our Vendor Code of Conduct, and to apply the code consistently across our business units. \nminerals from the technology supply \nL_37\ntext_57", "\n Citizenship at Microsoft_1\nRealizing potential with new skills \nMicrosoft Innovation Centers are state-of-the-art technology facilities that give youth advanced skills and real-world connections \nto help find jobs and become \ntechnology entrepreneurs. \nWe’re launching new business and entrepreneurial skills training in a collaborative effort with \nindustry leaders and nonprofit \norganizations, including Accenture, International Youth Foundation, and Telecentre Europe. \nL_3\ntext_15", "FY12 _2\nMicrosoft employees1 \n36% 27%\n35%\n34% \nFY12 FY12 \nFY10 FY11 22% 22% \nMinorities in the Women and US minorities on the US Microsoft workforce2 Microsoft board of directors2 \n40 24% 24% 24% \nFY10 FY10 FY11 FY12\n35 35 \nFY11 FY12 \n2 US minorities include the following populations: African American/Black, American Indian/Alaska \nNative, Asian, Hispanic/Latino(a), Native Hawaiian/Other Pacific Islander. \nMicrosoft 2012 Citizenship Report _4", "“Our carbon neutral commitment, with a cascaded carbon fee, will increase our \nfocus on efficiency \nand clean energy.” \nRob Bernard, Chief Environmental Strategist \nPressing environmental challenges require a collaborative, global response. We can minimize the impact of our operations by better conserving energy, managing resources, and setting aggressive goals. This year, we set a companywide carbon neutrality goal, which will begin with FY13. The goal will be accompanied by, and achieved through, a new internal carbon fee. We are hopeful that our goal will accelerate breakthroughs that will help our technology \nand products become more efficient. \nImpact of our operations \nOur continued focus on reducing the climate impact of our operations is helping minimize energy consumption across the company. \nExpanding employee action \n•\t Encouraged business groups to be financially responsible for the cost of offsetting their carbon emissions through an internal carbon fee. This fee is administered through our corporate finance department and applies to data centers, software development labs, offices, and air travel emissions. \nL_22\ntext_41", "Technology for the environment \nWe’re advancing environmental sustainability in our product design \nand distribution—without sacrificing quality, customer safety, or \ninnovation. And through our work with others, we’re advancing the dialogue about environmental sustainability. \nEnvironmental benefits of our solutions \n•\t Made it easier for organizations to measure, manage, and track their carbon footprint, total waste, and water usage with the new \nMicrosoft Dynamics AX 2012 enterprise resource planning (ERP) solution—one of only five products that fulfill the requirements of the GRI Certified Software and Tools Program. \n•\t A \n study\nCollaboration and partnerships \n•\t Provided online services for hosting and sharing global environmental data by launching the Eye on Earth network—a cloud computing-based network developed together with the European Environment Agency (EEA) and Esri. \n•\t Enabled virtually anyone to access climate data from anywhere through our launch of FetchClimate—a free, cloud-based climate data–retrieval service created in partnership with the EEA. \n•\t Partnered with the United Nations Environment Programme (UNEP) to provide energy-efficient, modular data center designs in order to enhance the performance of their new carbon-neutral headquarters in Nairobi, Kenya. \n•\t Drove energy efficiency in technology as a board member and participating contributor in several industry initiatives, including The Green Grid, the Climate Savers Computing Initiative, and the Global e-Sustainability Initiative. \nMicrosoft is a founding member \nof the ICT for Energy Efficiency (ICT4EE) Forum. ", "Microsoft technology for the environment \nGoal: Create new energy-efficiency guidelines for Microsoft product groups. \nWindows 8 includes advanced energy-efficiency features, and Windows Azure \nenables developers to build applications that can be intelligently scaled to reduce environmental impact. \nGoal: Develop new environmental guidelines for the software industry. \nWe released our most comprehensive framework on energy efficiency, and \nmade it widely available to developers to prompt energy-smart applications. \nGoal: Work with partners to find solutions that allow cloud computing \nto grow while reducing environmental impact. \nWe’re joining others with expertise in cloud computing to develop powerful \ntools that will give society a new level of insight into the resource requirements and performance of complex systems. \n•\t Providing guidance to help our industry develop more efficient software \n•\t Working with partners on customer solutions in five key areas: greener IT, buildings, power and energy infrastructure, transportation, and resource management \n•\t Collaborating with industry peers to develop new metrics like Carbon Usage Effectiveness and Water Usage Effectiveness that will help make data centers as efficient as possible \n•\t Educating customers on how to dispose of old computers and devices sustainably through industry partnerships, collection programs, and outreach efforts ", "\n Our Company_2\nInvesting in innovation \nIn FY12, we invested $9.8 billion in research and development— equal to 13 percent of revenue—focused primarily on product development. To stay competitive, we make strategic, long-term investments in research and development across a broad array of technologies, tools, and platforms spanning communication and collaboration, information access and organization, entertainment, business and e-commerce, advertising, and devices. \nThe people who power our innovations drive our success. We compete for talented employees from universities and private companies by offering broad customer reach, a wealth of resources, and competitive compensation. \nWe also collaborate with top universities through Microsoft Research—one of the world’s largest computer science research organizations—to advance the state of the art in computer science. \nResearch and development \nRamp;D FY10 FY11 FY12 \nSpending $8.71B $9.04B $9.8B \nSpending as % of Revenue 14% 13% 13% \nMore information about Microsoft investment in research and development is available in our \n FY12 10-K filing.\nL_0\ntext_1", "LI_1", "LBody_7\nLBody_8\nLBody_9\nLBody_10\nLBody_11", "\n Citizenship at Microsoft_6\n“Charitable giving helps create opportunity, solve problems, and make the most of people’s potential. We’re proud to amplify employee efforts to create real impact around the world.” \nLori Harnick, General Manager Citizenship and Public Affairs \nHelping employees make a difference \norganizations on Volunteer Manager, Microsoft’s opportunity \nmatching system for bringing needs and skills together. \n•\t Motivated volunteering through the Give SharePoint site, where employees can share experiences and opportunities with the rest of the Microsoft community. \nL_11\ntext_30", "John Ruggie, Former UN Special Representative for Business and Human Rights (2005–2011) \nJohn Ruggie is the Berthold Beitz Professor in Human Rights and International Affairs at Harvard’s Kennedy School of Government and faculty chair of the school’s Corporate Social Responsibility Initiative. \nMaking a statement in corporate citizenship \nWith its Global Human Rights Statement, Microsoft has taken an important step toward aligning its policies and practices with the \nUnited Nations Guiding Principles on Business and Human Rights (GPs). \nIn June 2011, the UN Human Rights Council unanimously endorsed \nthe GPs, which I developed over the course of six years of extensive \nconsultations, research, and pilot projects. They now constitute the \nmost authoritative global human rights instrument linked to business. \nCore features of the GPs have been incorporated into the updated Organisation for Economic Co-operation and Development Guidelines for Multinational Enterprises, the new European Union corporate social responsibility strategy, the International Finance Corporation’s revised sustainability policy, and ISO 26000. The \nGPs also enjoy strong support from stakeholder groups including \nbusiness, workers organizations, and civil society. \nThe GPs lay out the duties of states to protect human rights, the corporate responsibility to respect human rights, and the need for remedy where harm does occur. In addition to calling on businesses to adopt a human rights policy statement, the GPs provide the means for them to know and show that they respect human rights. These include a due diligence process to identify, prevent, mitigate, and account for how they address adverse impacts on human rights, and processes to enable the remediation of any such impacts they cause or to which they contribute. \nBy reducing the risk that companies cause or contribute to human rights harm, the GPs protect human rights, build trust between companies and their internal and external stakeholders, and help ensure that fragile global markets become socially more inclusive and sustainable. ", "Goal: Maintain or increase dialogue between shareholders and the company. \nWe updated investors on developments in corporate governance with an annual letter from the Governance and Nominating Committee of the board. We engaged biannually with a group of investors who collectively hold approximately 35 percent of outstanding shares. We released a new installment of our director interview series featuring members of our board. \nGoal: Engage in cross-industry forums to help us identify and contribute to the development of best practices. \nWe engaged with a variety of organizations, including the Conference Board Governance Center, Stanford Institutional Investors’ Forum, the Society of Corporate Secretaries and Governance Professionals, the Millstein Center for Corporate Governance and Performance, and the Council of Institutional Investors. \nGoal: Continue to enhance our corporate governance principles and policies to serve the interests of our shareholders and other stakeholders. \nWe made our board oversight structure more efficient by reorganizing the board’s committees, reducing the number of committees from five to four. \nGoal: Implement the regulatory and disclosure requirements adopted under the Dodd-Frank Wall Street Reform and Consumer Protection Act. \nL_46\ntext_67", "Future engineers build their first robots \nGina Triolo was in elementary school when she first saw the Miss Daisy team robot battling on the playing field. Designed and built \nby students from Wissahickon High School in Ambler, Pennsylvania, the robot was locked in a high-stakes, goal-scoring clash with other robots from around the country in a FIRST® Robotics Competition. \nInspired, Gina told her parents she would one day join the Miss \nDaisy team. Nine years later, she had not only competed with the team, but graduated as team captain. “She went from a third grader that didn’t really understand the competition at all to studying computer science at Princeton,” said Alan Ostrow, Miss Daisy’s head coach. “And she interned at Microsoft the last two summers.” \nGina is one of thousands of students inspired by FIRST, a nonprofit \nthat organizes robot competitions around the world. The contest— which gives high school teams six weeks to design and assemble a \nsport-playing robot—builds students’ confidence, knowledge, and \nlife skills while motivating them to pursue career opportunities in science and technology. Microsoft donated more than 2,400 Xbox \n360 Kinect Sensors to the nonprofit in 2012. \n“Kids learn all kinds of useful skills, but they also become personally \ninvested in the project,” said former team member Jared Russell, \nwho’s now a robotics researcher at Lockheed Martin and a mentor for current students. “We’re not trying to build engineers straight out of high school. We’re developing kids’ interests and skills so they want to become engineers in the future.” ", "TR_2\nTR_3", "Humanitarian response _0\nGoal: Make more robust solutions available to support disaster response efforts. \nWe partnered with Esri, which provides geographic information systems, to help \nfirst responders make better decisions faster. \nGoal: Implement cloud solutions to support performance and scalability during disasters. \nWe’re helping governments manage emergency situations more effectively with Disaster Response Incident Portal, which runs on the Windows Azure cloud platform. \nGoal: Help businesses restart after a disaster with access to services and technology that speed their recovery. \nAfter widespread flooding in Thailand, we provided customers with impact \n\n See GRI Index for more_2\nL_15\ntext_34", "Setting the stage for carbon neutrality \nWith governments slow to act on the accelerating climate change challenge, it is essential that leadership to drive a low carbon economy \ncome from the private sector. A modest number of large, influential \ncompanies are stepping up to the plate, not only because they take good corporate citizenship seriously, but because they understand that operating sustainably also makes them more competitive and \nmore profitable over the long term. \nMicrosoft’s announcement that it will become carbon neutral in \nFY13 exemplifies the kind of visionary thinking that has been the \ncompany’s hallmark for decades. And the fact that Microsoft didn’t make this a long-term aspirational goal, but a companywide commitment to be met this fiscal year, is both bold and inspirational. \nHow Microsoft plans to achieve carbon neutrality reflects the company’s \ninnovative spirit. Ceres has long argued that without putting a price on the carbon emissions responsible for global warming, as long as the atmosphere is treated as an unlimited free resource, it will be virtually impossible to slow the rate of climate change. \nRather than wait for policymakers to take this vital but elusive step, Microsoft is putting an internal price on carbon that will make each of its business divisions responsible for the cost of offsetting its \ncarbon emissions, either through energy efficiency or by payment \ninto a central fund that will be used to source renewable energy or purchase carbon offsets. This kind of “green accountability” could well become a model for other companies looking to remain competitive in the carbon-constrained economy of the future. ", "“Technology has the fundamental ability to positively impact people’s lives. However, with this comes the responsibility—to our customers and the global community—to operate our business in a way that promotes respect for human rights.” \nJean-Philippe Courtois, President Microsoft International \nTechnology is changing the landscape of human rights. The Internet and other communications technologies allow people all over the world to share information and ideas. But technology doesn’t take sides. Technology users are also increasingly vulnerable to privacy violations and other forms of exploitation. We partner with organizations around the world to protect privacy, create a safer online environment, and give people the means to make their voices heard. \nAffirming our commitment \nOur \n Global Human Rights Statement\n(UN) Guiding Principles on Business and Human Rights. Our statement \nfrom, countries that present significant human rights risks. \n•\t Promoting good governance: We will continue to model and promote the rule of law and good governance around the world. \nWe’re also committed to upholding human rights in our global supply chain and among our employees. See the \n Responsible sourcing Our people\nL_28\ntext_46", "Timothy Smith, Senior Vice President Walden Asset Management \nTimothy Smith is senior vice president and director of ESG shareowner engagement of Walden Asset Management. In 2007, the Ethisphere Institute named him one \nof the 100 most influential people in \nbusiness ethics. \nSetting the standard for transparency \nCorporate participation in politics and funding of elections has become a hotly debated issue. From newspaper editorials to grassroots campaigns to investor inquiries, companies are under scrutiny for their political spending and lobbying, with widespread fears that \nthey are exerting undue influence. As Microsoft has demonstrated, \nthe way to address such fears is transparency. \nMicrosoft engages government agencies and representatives on public policy issues crucial to its business, guided by a set of principles and practices with transparency, responsibility, and accountability at its core. \nWhen asked “How much influence is your company exerting in the \npolitical process, and how do you do it?” or “What is your agenda?” Microsoft provides answers, posts them publicly, and updates them annually. Microsoft provides specifics about its lobbying and political spending, with details on how much is spent on each activity. Company participation is guided by a public policy agenda, which openly spells out the issues important to its business. \nAny company involved in the political process can face controversy. For example, it is always confusing to stakeholders when trade associations claiming they speak for their members, such as the US Chamber of Commerce, take positions counter to Microsoft’s on issues like the environment or diversity. This makes it all the more important for Microsoft to consistently declare what it stands for and differentiate itself from any backward-looking trade association statements or lobbying positions. Such a transparent, responsible, accountable approach sets the gold standard. \nMicrosoft is a leader in showing how corporate participation in politics can be consistent with corporate responsibility. ", "LI_48", "LBody_142\nLBody_143\nLBody_144\nLBody_145\nLBody_146\nLBody_147", "Contents \n\n Our Company Serving Communities Working Responsibly About this Report\nWe’ve always believed that technology creates opportunities for people and organizations to realize their full potential. This belief inspires us to deliver new technology that unleashes creativity, productivity, and opportunity for more and more people around the world. \nThis report describes our citizenship work in fiscal year (FY) 2012 and shares our vision for what’s to come. Together with our annual financial report, it provides a full accounting of our fiscal and citizenship priorities and performance. \nThe full scope of our citizenship activities includes serving communities, championing the growth of our people, and advancing our commitment to responsible business policies and practices. In particular, we are increasing our focus on young people in order to help more and more youth reach their dreams. \nThough we live in a time of tremendous opportunity, there’s a growing divide between young people with the chance to succeed and those without. To help close this gap and ensure a prosperous future, we are launching Microsoft YouthSpark, a bold initiative to connect hundreds of millions of youth with opportunities for education, employment and entrepreneurship. In partnership with governments, \nnonprofit organizations and businesses, we’re helping the next generation use \ntechnology to make a real impact for a better tomorrow. \nFor the first time ever, we are now dedicating the majority of our cash donations \nto organizations that help young people. And, through our Technology for Good \nprogram, we provided more than 62,000 nonprofits in more than 100 countries \nwith affordable access to technology to better serve their communities. ", "\n Our Company_0\nOur business \nMicrosoft Corporation (NASDAQ: MSFT) is the worldwide leader \nin software, services, and solutions that help people and businesses realize their full potential. We’re committed to sharing our successes with our employees, our shareholders, and the communities in which we operate. We approach that commitment with the same energy and innovation we bring to all parts of our business. \nWhere we are \nHeadquartered in Redmond, Washington, Microsoft employed approximately 94,000 people on a full-time basis in more than 100 countries/regions and territories in FY12. Approximately 55,000 employees were based in the United States, and 39,000 were based in other countries. \nEngaging our customers and partners \nOur success depends on creating new and compelling products and services, while building strong relationships with our customers and partners. We keep in touch through online feedback forms, support communities, product satisfaction surveys, usability studies, research forums, and our customer service Twitter account, @MicrosoftHelps. The insights we gain help us understand and respond to our customers’ and partners’ experiences. We also use information drawn from global customer and partner satisfaction surveys as a measurement for employee, executive, and regional performance. \nOur partners—approximately 640,000 mostly small to medium-size local businesses around the world—develop, market, sell, and service \nMicrosoft products, supporting millions of jobs and contributing to \nlocal and global economic growth. \nTo learn more about how we connect with customers and partners or to provide feedback, please visit the Microsoft Customer and Partner Experience \n website", "\n Citizenship at Microsoft_2\nSupporting youth-focused nonprofits \nBeyond education, inspiration, and connections, young people need social services and better assistance to contribute at a higher level. We’re empowering youth-focused programs and services, and \nreach more youth-focused nonprofit organizations than ever before. \n•\t Built a one-of-a-kind micro-giving portal—\n Give for Youth\nRead more about our donations to nonprofit organizations in the \n Empowering nonprofits\nMicrosoft provides resources and support to help nonprofits \nconnect more young people with opportunities to succeed. \nL_4\ntext_17", "Creating the next generation of tech leaders \nIf computer science is one of the fastest growing and most lucrative career paths, why are so few US high school students— less than 0.6 percent of all students who took Advanced Placement tests in 2011—choosing to take a computer science class? \nKevin Wang, a former teacher and current Microsoft employee, believes limited availability, not lack of interest, is at the root of the problem. \n“There’s just a huge black hole in computer science,” Wang says. “I started teaching first-period computer science at a local school \non the way to work. Word got around, and schools wanted clones of me to start computer science programs at their schools.” \nThat’s why Wang founded Technology Education and Literacy in \nSchools (TEALS), a program that trains, mentors, and places high-\ntech professionals from companies like Microsoft as volunteer computer science teachers. The program’s team-teaching model also trains existing faculty, so they can continue teaching the courses on their own. What started as a one-school, one-volunteer program with 12 students is now expected to impact more than 2,000 high school students in 37 schools across eight states in the \n2012–13 school year. \n“It is so incredibly important for high school students to be exposed \nto computer science—just like biology, chemistry, and physics— \nbefore college,” Wang explains. “Not everyone will become a computer scientist, but everyone should have the chance to learn about computer science in high school no matter where they choose to go in life.” ", "Employee giving _0\nGoal: Make it easier for our employees and alumni to contribute their skills and expertise to local communities. \nWe can now better connect our employees and alumni with organizations thanks to the companywide rollout of Volunteer Manager, an online tool that matches skills and expertise with needs. \nGoal: Continue to support our employees’ giving and volunteerism activities worldwide. \nVolunteerism was up more than 12 percent, and between our employees’ \ngenerosity and Microsoft’s match, we gave $99.8 million to nonprofits last year. \nGoal: Support the Net Impact chapter at our headquarters in Redmond to spark employee-led citizenship projects, and expand the chapter to other campuses. \n\n See GRI Index for more_1\nL_12\ntext_31", "“Life at Microsoft is about more than just the work; it’s about who we are as people. We have a passion for life, for creating outstanding products, and for helping others realize their full potential.” \nLisa Brummel, Chief People Officer \nOur employees are innovators from every corner of the globe, \ndefining the Microsoft experience. Our talent, commitment, diverse \nlife experiences, and community contributions make us who we are, and help us better understand customer needs. We value each individual, rewarding outstanding talent and creating opportunities for employees to grow professionally and support the causes they care about. We also ask for—and act on—employee feedback in search of new ways to continually advance our status as one of the best places to work in the world. \nCompensation and benefits \nThe world’s top talent demands and deserves a premier work environment. We deliver, with competitive compensation, performance \nawards and attractive benefits packages for our employees. \n•\t Made the most significant investment in overall employee \nL_17\ntext_36", "processors, and platforms. \n•\t Cooled our data center in San Antonio, Texas, using recycled wastewater from the city’s wastewater system. \nis motivating business divisions to save money by reducing energy consumption. \nThe Washington State Recyclers Association named Microsoft 2012 Recycler of the Year. \nL_23\ntext_42\nL_24\ntext_43", "Goal: Reduce our carbon emissions per unit of revenue by 30 percent compared with 2007. \nWe met our goal with a mix of energy-efficiency measures and investments in renewable energy and carbon reduction projects that were externally verified. \nGoal: Improve our governance model to increase accountability to corporate environmental goals. \nAmong other efforts, we’re driving responsible business decisions by setting an internal price on carbon, measuring emissions, and charging a fee to teams responsible for those emissions. \nGoal: Enhance our global carbon footprint–tracking system to also track water usage and waste. \nmaking the company’s business divisions financially responsible for the cost \nL_26\ntext_44\nL_27\ntext_45", "Improving health and living conditions \n•\t Launched a worker community project to support supplier efforts to improve living conditions, quality of life, and develop career growth opportunities for workers. Our improvement projects include providing cleaner dormitories, workshops, and canteen areas; offering more culturally diverse foods; organizing field trips for workers to give them a better work/life balance; enhancing management and worker communications; and developing career paths for workers. \nListening to workers \n•\t Enhanced supplier management capabilities to better understand and resolve workers’ concerns through an updated workers’ grievance process, including an anonymous hotline to capture worker concerns and worker interviews conducted by the Fair \nLabor Association (FLA). \n•\t Based on an initial assessment in 2011, we updated the model in FY12 with a bigger focus on promoting improvements in worker/ management communication. Worker surveys and interviews conducted by the FLA provided key data to support our collaborative efforts with suppliers on issues the workers themselves most want to see addressed. \nCommunity Technology Centers teach people in supplier com munities how to use computers and the Internet, explore new careers, further their education, participate in community activi \nties, and develop job-related \ntechnology skills. \nL_35\ntext_56", "Key governance data \n11 \n81% \n4 \n100% \nYes \nYes _0\nYes _1\n8 \n8,383,396,575 \n128,992 \n1\t As of July 18, 2012. ", "Sect_5\nLink_63\nSect_6", "\n Citizenship at Microsoft_0\nInspiring young imaginations \nL_2\ntext_11", "Inspiring young Arab innovators \n“People are full of potential,” says Mostafa Nageeb, the young CEO \nof a growing startup. “They are just looking for the opportunity and \nsupport to unleash their potential.” \nThat’s exactly what Innovate for Good gatherings are all about— helping youth take charge of the future by bringing them together to collaborate, inspire, and support one another. \nAt a 2012 event, Nageeb and more than 220 other young people from 11 Arab countries came together to identify needs in their local communities. Student innovators showcased how they used Microsoft technology and programs to help change their communities for the better. Others delivered speeches tackling challenging issues related to the Arab Spring, the image of Arab youth, the potential of e-governance, and the pressing need for community service. \nNageeb talked about Ekshef, his online social directory that helps \npeople in Arab countries find the doctors with the expertise they \nneed, and book appointments online in minutes. “Access to health care information is a basic right,” he says. “However, it doesn’t exist in many parts of the Arab region, including Egypt.” Another participant, Manal Elattir from Morocco, founded Anarouz Social Enterprise, an organization that promotes empowerment and entrepreneurship for women through market access and technology. \nOn the final day of the conference, participant groups each designed a work plan for a project serving some aspect of their community. \n“Innovate for Good is a great empowerment to people,” Nageeb says. “I saw great examples of Arab youth who are changing the world through their ideas, efforts, and innovation.” ", "TH_5\nTH_6\nTD_22\nTH_7\nTD_23", "Getting help where it’s needed most \nDuring major disasters, it’s critical to get the right relief to the right \nareas—quickly. Notes from the Ground, a partnership between \nAidmatrix and Microsoft Disaster Response, will help do just that. \n“Everything is so hectic during disaster recovery, that by making communication and data sharing easier, more time can be spent in other areas of the recovery effort,” said Keith Thode, COO and CTO of Aidmatrix. \nNotes from the Ground will connect readers on www.msn.com, Bing, and other Microsoft outlets to opportunities to help the impacted community. As relief organizations post requests for water, gauze, shovels, and other essentials through Aidmatrix, citizens around the world are able to view precisely what is needed on the ground. \nIn addition, Microsoft Disaster Response and Aidmatrix seek to provide an opportunity for on-the-ground responders to share their stories more broadly. Through Notes from the Ground, aid workers, \nvolunteers, and first responders are able to share updates on their \nrelief activities. It includes an interactive map containing stories, \nphotos, and videos from relief organizations, providing firsthand \naccounts of how aid efforts are going. ", "Software helps student who is blind reach the top of her class \nIgnacia Picas maintains a near-perfect grade-point average at her primary school in Santiago, Chile. While her grades are impressive, her feat appears even more remarkable when you learn she’s blind, yet participates in the same learning environment as her peers. \nAt Colegio San Benito, Ignacia once relied on a Braille typewriter to complete her school assignments. But at age 12, a laptop running the Windows operating system changed her learning experience. She now excels by using accessibility programs in Windows and \nbuilt-in tools in Microsoft Office applications, along with the Job Access With Speech (JAWS) screen-reading software. \n“Before, all of her assignments needed to be translated into Braille, which took extra time and made it harder for Ignacia to keep up with the rest of the class,” said Viviana Contreras, Ignacia’s teacher. “When she started using Microsoft programs, together with the \nJAWS software, we noticed everything became much easier for her.” \nThe JAWS software converts text into spoken words. Ignacia then \nuses the accessibility tools in Microsoft Word and Excel to create documents, take notes, complete tests, and perform calculations for math and science lessons. \n“Ignacia’s story illustrates the power of technology,” explained Angel Dubon Marchelli, director of Microsoft Partners in Learning in Latin America. “Accessibility features in Windows and Microsoft \nOffice can empower students who otherwise might have had an extremely difficult time communicating, collaborating, or \nsocializing with their peers.” ", "\n Citizenship at Microsoft_9\nEngaging students with special needs \nScientific, and Cultural Organization. Together, we convened a \nmeeting in November 2011 in Paris that brought together 30 participants from more than 10 countries to discuss accessible technology for students and report on practical solutions for educators. \n•\t Made it easier for schools to select, buy, and deploy accessible devices and assistive technology in collaboration with Dell’s Assistive Technology Service. Our work includes showing educators how to create digital talking textbooks and other accessible teaching materials using the accessibility features in Windows, \nOffice, and other Microsoft products. \nL_16\ntext_35", "Health and safety \n“Pride and passion characterize what we heard in the words of Microsoft employees around the globe. Pride in their personal contributions and those of the company, passion for the work they each do every day, and a sense of how it contributes to a higher purpose. \nThis collective experience—voiced by \nthe employees—contributed to Microsoft being named the number one World’s Best Multinational Workplace by Great Place to Work.” \nSusan Lucas-Conwell, CEO, Great Place to Work \nL_20\ntext_40", "Using technology to fight child trafficking \nTechnology has enabled jaw-dropping advancements in communication, providing greater access to information and allowing individuals \nto work more efficiently and stay better connected. But it has also benefited criminals—including child sex traffickers and their customers. \nWe’re working to help create a safe computing environment for children and ensuring that Microsoft technologies are not used to conduct crime. In 2012, Microsoft Research and the Microsoft Digital Crimes Unit collaborated to begin understanding how we \ncan contribute to the fight against human trafficking—a $32 billion \n\n a year industry. We awarded six grants totaling $185,000 to research\n“Armed with better data, I believe real breakthroughs are possible for helping disrupt the dynamics that fuel the child sex trade,” said Samantha Doerr, program manager for the Microsoft Digital Crimes Unit. \nThe research will cover a range of topics from investigating how technology facilitates the recruiting, buying, and selling of victims \nto understanding the benefits and obstacles of technology on law enforcement efforts to combat human trafficking. Collecting data is just the first step. Ultimately, we want to make a difference by developing technologies to help thwart traffickers and those who \ndo business with them. ", "“Maintaining high standards for business conduct helps businesses demonstrate their values. From our actions in the public sphere to our decisions in the boardroom, we aim to consistently apply \nexacting principles to chart \na clear course, guided by our accountability to the public.” \nBrad Smith, Executive Vice President and General Counsel _0\nSound principles, practices, and leaders are critical to good business. Accountability at the highest levels and ethical conduct throughout the company are central to earning and maintaining the public’s trust. \nCorporate governance \nStrong corporate governance builds trust, creates internal checks and balances, and deepens management accountability. \nL_38\ntext_58", "Public policy engagement \nFederal State \nL_40\ntext_61", "TD_54\nTD_55\nTD_56", "TD_57\nTD_58\nTD_59", "I’m proud of the generosity of our employees. In October 2012 we are marking our company’s 30th Employee Giving Campaign, whereby the company matches the \nfinancial and volunteer contributions of our employees. Through this campaign, \nMicrosoft and its employees gave nearly $100 million in FY12, and in FY13, we are on track to bring the total to $1 billion since 1983. \nBeyond direct service to the community, we made significant strides in the areas \nof human rights and environmental sustainability. We consulted with businesses, government and other key stakeholders to develop a human rights statement that brings together long-standing policies on issues such as privacy, security, free expression and labor rights. And, we exceeded our goal to cut carbon emissions by 30 percent compared with 2007, due in part to the 1.1 billion kilowatt hours of green power we purchased, the third most of any US company. \nBeing a leader in corporate citizenship, we recognize there’s always more we can do. Our endorsement of the United Nations Global Compact drives us to continually improve our business practices and increase our accountability. \nI’m confident that in this coming year we will continue to create value for our business as well as the communities and people we touch through our citizenship activities. Thank you for your interest in Microsoft. We welcome your thoughts and suggestions. \nSteven A. Ballmer CEO, Microsoft Corp. \nMicrosoft 2012 Citizenship Report _0", "46,886 FY11 43,650 FY11 3.20%\n$603M \nFY10 FY10 \nFY10 _0\nSoftware supplied to nonprofits2 \nREGION WINDOWS OFFICE \nAsia Pacific 28,040 17,490 Europe, Middle East, and Africa 78,930 26,220 \nSoftware1 \nLatin America 23,040 North America 414,290 97,610 ", "Empowering young women in Kenya \nDisadvantaged girls in Kenya grow up knowing their options for higher education are limited. Those who complete high school and dream of attending college face extraordinary odds. All too often, they end up back in the circle of poverty, with little support or encouragement to achieve their goals. \nThat’s where Erin Zuehlsdorff enters the picture. In 2010, this Microsoft employee discovered the power of mentoring through \n Global Give Back Circle (GGBC)\nof change in their communities. \nIn 2008, GGBC began setting up IT labs in Kenya, in collaboration with Microsoft Women of West, East, and Central Africa. Now, young women in those communities get help staying on track by taking a nine-month course covering scholarship opportunities and career planning, as well as programming, web design, accounting, \nand Microsoft Office tools. Mentors like Erin use Skype, send text \nmessages, or write letters a few times a week, providing support and friendship. \nWhen Erin learned about Microsoft’s volunteer match program, in which the company makes a cash donation of $17 per employee volunteer hour, she realized she could help make an even bigger difference. Now, she is working to attract additional employees to become mentors. Erin says, “It’s such a small amount [of time] \nto give for so much reward. Just a small piece of your heart—two letters a month—can have a significant impact.” ", "Our people _0\nGoal: Roll out a new pay and performance management approach and monitor feedback to remain a top employer of choice. \nOur new approach is in place, and we’re using surveys, listening tours, and internal discussions to gather employee input. \nGoal: Support our new performance-management approach that rewards business impact and how employees get their work done, and emphasizes ongoing career development. \nWe streamlined our processes to better collect peer feedback on employee performance that helps inform more valuable career discussions. \nGoal: Increase executive leadership support and accountability in diversity and inclusion. \nWe developed a new framework to help leaders assess diversity and inclusion, and foster an inclusive work environment. \nGoal: Recruit, advance, and retain senior-level women globally. \nWith the number of women pursuing technology careers in decline, this is an industrywide challenge. We’re working with partners and other organizations to reverse this trend. ", "FY11 \nBUSINESS STRUCTURE FY10 FY11 FY12 \n$62.48B \nWindows® and Windows Live® $19.49B $19.03B $18.37B\nFY10 \nWindows 7 and prior versions of the Windows operating system, Windows Live suite of applications and web services, Microsoft PC hardware products \nServer and Tools $15.11B $16.68B $18.69B Windows Server® operating systems, Windows Azure™, Microsoft SQL Server®, SQL Azure™, Windows Intune™, Windows Embedded, Microsoft Visual Studio®, Microsoft Silverlight®, Microsoft System Center products, Microsoft Consulting Services, Premier product support services \nOnline Services $2.3B $2.61B $2.87B Bing, MSN, adCenter, Atlas online tools for advertisers ", "LI_2", "LBody_12\nLBody_13\nLBody_14\nLBody_15", "Online safety \nA safer online environment is critical—particularly for children. We partner with policymakers, advocacy groups, and other companies in our industry on a range of online safety issues, from leading the charge against online child exploitation to teaching people how to help protect themselves on social networking sites. \n•\t Advanced the fight against online child pornography by making \n\n Microsoft PhotoDNA\nL_30\ntext_51", "Hardware production \nTo meet our own and others’ expectations to make our products with integrity, Microsoft operates a Social and Environmental \nAccountability (SEA) program specifically focused on suppliers \nthat produce our hardware products and packaging materials. \nRaising supplier accountability expectations \n•\t Microsoft’s hardware and packaging suppliers are required to provide Microsoft and third-party auditors on-site access to conduct audits and assessments of conformance with our Vendor Code of Conduct. Microsoft’s factory managers and SEA team regularly visit supplier factories to assess living and working conditions. The factories that assemble Microsoft products receive third-party compliance audits at least once a year. The suppliers we contract to make components for our products also receive SEA team assessments and third-party audits based on their risk level. All of the final assemblers of our hardware and all high- and medium-risk component suppliers have undergone human rights pre-contracting and ongoing screening. In FY12, 98 significant hardware suppliers underwent human rights risk assessment and monitoring. \n•\t Overall, monitoring found no instances of human trafficking or interfering with workers’ freedom of association. Monitoring detected eight non-conformances of the non-discrimination provisions of our Code of Conduct. It also found seven instances of concern regarding suppliers’ forced labor prevention processes, including protecting workers’ ability to refuse overtime work and to have easy access to their personal identification documents that workers need for travel. All of these issues were escalated to Microsoft senior management and the suppliers were placed on restricted status with no new Microsoft business awarded until they had resolved the issues. \n•\t We identified one instance of under-aged labor at each of two supplier sites, and one instance at a site of a prospective supplier with which we declined to do business. The cause of these violations was vulnerabilities in the suppliers’ age verification procedures, which did not detect the misuse of borrowed identification. Both cases were escalated to senior management, and the supplier was placed on restricted status with no new Microsoft business awarded until the problem was resolved. We verified they had taken corrective action—including immediately ceasing employment of the minors and providing the minors a safe journey home—and verified they had taken appropriate steps to make their identity validation controls more robust. In one case, we helped the supplier implement facial recognition software to screen new employees and substantially reduce the risk of minors using false identification papers to get work. ", "Conflict minerals \nWe proactively support industry and multistakeholder efforts \nto move toward a conflict mineral–free electronics supply chain. \n•\t Continue to examine our supply chain to identify each component used in our products containing tin, gold, tantalum, or tungsten and the suppliers of these components. We are educating these suppliers regarding the conflict minerals issue and ask suppliers to identify each smelter or refinery they use and verify that the minerals in these components do not come from implicated conflict mineral zones. \n•\t We seek to align our efforts with the Organisation for Economic Co-operation and Development (OECD) Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas and the requirements of the Dodd-Frank Act and related US Securities and Exchange Commission (SEC) regulations. \n•\t Supported strong and effective disclosure requirements by publicly signing on to comments on the US government’s proposed Dodd-Frank regulations on conflict minerals. \n•\t Participated in the Public-Private Alliance for Responsible Minerals Trade (PPA), a joint initiative among governments, companies, and civil society to explore potential supply chain solutions to conflict minerals challenges in the Democratic Republic of the Congo and the Great Lakes region of Central Africa. \nSee the \n Environment section", "TR_5\nTR_6", "P_115", "Maintaining strong practices and performance \n•\t Received a 9.5 out of 10 global market rating from GovernanceMetrics International for practices and performance \nL_49\ntext_74\nL_50\ntext_75", "H2_0\nP_7", "LI", "LBody\nLBody_0\nLBody_1\nLBody_2\nLBody_3", "Saving children’s lives with a Windows phone \nSometimes a mosquito bite is just an itchy bump. Sometimes it’s \nthe symptom of something far more deadly. In sub-Saharan Africa, Asia, and parts of the Americas, mosquitoes often carry malaria, a potentially fatal disease that takes the lives of more than 1 million \npeople per year—85 percent of them children under the age of five. \nOne team that competed in the Microsoft Imagine Cup technology competition believes it can save children’s lives by diagnosing malaria faster and more accurately, increasing detection rates, and ensuring medication is distributed correctly. \nThe current malaria test uses a chemically treated cotton swab to diagnose an infection. But the test has a false positive rate as high as 60 percent, leading health care workers to distribute precious medica\n tion to patients who don’t need it. A new solution called Lifelens\nWhat’s more, Lifelens automatically collects and stores data so it can be transferred to a centralized server that aggregates the information to identify outbreaks before they become serious. Lifelens can be used by anyone who has the ability to operate a cell phone, lowering or eliminating training costs, and enabling testing to reach—and save—more children. ", "LI_9", "LBody_30\nLBody_31\nLBody_32", "\n Citizenship at Microsoft_10\nImproving seniors’ well-being \nOlder adults can live more independent and productive lives with the right technology. We partner with governments and organizations around the world to show how technology can reduce social isolation, increase wellness, and enhance the quality of life of seniors everywhere. \n•\t Gave seniors a new way to get fit, socialize, and manage their \npersonal health information online. Members of the \n Exergamers Wellness Club Seniors in Action\n•\t Surveyed home care and geriatric care providers to learn how technology can help older adults remain independent, productive, and healthy in their homes. In collaboration with Philips and LivHome, the Future of Home Care Technology survey was designed to help providers learn how to better serve the needs of older adults by improving quality of care and providing information and reassurance to family members. \nA member of the Exergamers Wellness Club in Los Angeles, California. ", "LI_34", "LBody_102\nLBody_103\nLBody_104\nLBody_105\nLBody_106\nLBody_107\nLBody_108", "Managing risk at the board level \nCreated a more effective and efficient oversight structure by reorganizing the board’s committees, reducing the number \nchairman, president, and CEO of Seagate Technology PLC. \nL_39\ntext_59", "L_41\nLI_41", "TR_7", "TH_8\nTH_9\nTD_31\nTD_32", "Good corporate citizenship starts at home. To meet our responsibilities as a global company, we’re continually working to create a respectful and rewarding work environment for our 94,000 employees. \nWe’re also taking steps to reduce the environmental impact of our operations while partnering with industry colleagues and leading \nnongovernmental organizations (NGOs) to elevate standards across \nthe supply chain. And with the release of our Global Human Rights \nStatement, we affirmed our commitment to respecting fundamental \nrights and freedoms throughout our business practices. ", "We regularly communicate with thousands of stakeholders from global human rights experts and environmental NGOs to parents concerned about their children’s safety and education. Those conversations help inform and guide our citizenship strategies and programs. \nOur stakeholder engagement takes several forms. Employees from our business and operational groups regularly identify and engage with stakeholders in the course of their daily work activities. Our Citizenship and Public Affairs team also manages a number of stakeholder engagements and external relationships to help guide our strategies. \nWe connect with leading thinkers on corporate responsibility issues as participants in groups such as Business for Social Responsibility \n(BSR), the Boston College Center for Corporate Citizenship, the \nClinton Global Initiative, Net Impact, and the World Economic Forum. In partnership with our colleagues in corporate governance and investor relations, we discuss environmental, social, and governance issues twice a year with our largest institutional investors. \nWe also listen to advocacy groups, socially responsible investors, corporate responsibility rating agencies, and our own employees to identify new and emerging citizenship issues. ", "LI_3", "LBody_16\nLBody_17\nLBody_18", "Global giving \n1 As of FY11, data includes employee in-kind giving of software. \n2\t Various versions of Windows and Office were supplied, depending on the type \nof refurbished hardware. \nNonprofit recipients of software donation \nMicrosoft 2012 Citizenship Report _1", "LI_11", "LBody_37\nLBody_38\nLBody_39\nLBody_40\nLBody_41\nLBody_42", "TR_8\nTR_9", "LI_46", "LBody_133\nLBody_134\nLBody_135\nLBody_136\nLBody_137\nLBody_138", "$27.16B FY11 \nand CRM solutions, and Office Web Apps, which are the \nonline companions to Microsoft Word, Excel®, PowerPoint®, and OneNote®\nFor detailed financial information, see the \n Microsoft annual financial report\nOperating income Earnings per share ", "LI_5", "LBody_21\nLBody_22\nLBody_23", "TR_4", "TD_24\nTD_25\nTD_26", "LI_21", "LBody_66\nLBody_67\nLBody_68\nLBody_69\nLBody_70", "LI_29", "LBody_87\nLBody_88", "LI_33", "LBody_97\nLBody_98\nLBody_99\nLBody_100\nLBody_101", "LBody_122\nLBody_123", "Link_56\ntext_69", "TR_10", "TD_39\nTD_40\nTD_41", "Since the release of our first product in 1975, we’ve demonstrated \nthe promise of computing to change the world. But as we’ve grown as a company, so have the world’s social and environmental challenges. We’re responding by applying our technology, ingenuity, and collaborative spirit to help solve these critical challenges and \ncreate fulfilling and exciting opportunities for people everywhere. \nWe focus our commitment to corporate citizenship in two ways: serving communities around the world and working responsibly in our own business. ", "H2\nP_6", "H2_1\nP_8", "In this section \n\n Empowering youth through education and technology Inspiring young imaginations Realizing potential with new skills\n\n Supporting youth-focused nonprofits\n\n FY12 performance and FY13 commitments", "In this section _0\n\n Donating software to nonprofits\n\n worldwide Providing hardware to more people Sharing knowledge to build capacity Solutions in action FY12 performance and\n\n FY13 commitments", "LI_10", "LBody_33\nLBody_34\nLBody_35\nLBody_36", "In this section _4\n\n Compensation and benefits\n\n Diversity and inclusion Training and development Health and safety FY12 performance and\n\n FY13 commitments_0", "LI_20", "LBody_62\nLBody_63\nLBody_64\nLBody_65", "LI_22", "LBody_71\nLBody_72\nLBody_73\nLBody_74", "In this section _6\n\n Affirming our commitment\n\n Privacy and data security Online safety Freedom of expression FY12 performance and\n\n FY13 commitments_2", "LI_31", "LBody_91\nLBody_92\nLBody_93\nLBody_94", "In this section _7\n\n Hardware production\n\n Conflict minerals\n\n Expanding our efforts FY12 performance and FY13 commitments", "In this section _8\n\n Corporate governance\n\n Maintaining strong practices and performance Public policy engagement Compliance FY12 performance and\n\n FY13 commitments_3", "TD_27\nTD_28", "TD_29\nTD_30", "Link_53\ntext_60", "$6,912,000 FY11 \n$7,559,000 FY12 \n$6,870,000 FY11 \n$7,486,000 FY12 ", "Citizenship website_0\nblogs\nFacebook\nTwitter ", "P_114", "External frameworks \nTo guide our work, we consult international frameworks such as the Global Reporting Initiative’s Sustainability Reporting Guidelines, \nthe United Nations (UN) Guiding Principles on Business and Human \nRights, and the UN Global Compact. This report serves as the Communication on Progress of our commitment to the UN Global Compact (see index on page 86). ", "TR_11\nTR_12", "14 \n36 \nLink_64\nLink_65", "23\t \n40 \nLink_66\nLink_67", "46 \n69 \nLink_69\nLink_70", "53 \n76 \nLink_71\nLink_72", "Our citizenship mission is to serve globally the needs of \ncommunities and fulfill our \nresponsibilities to the public. ", "We’re active members of the communities everywhere we do business. We use our skills, technology, and other resources to serve the people in these communities—from supporting disaster relief efforts \nto connecting nonprofits with the tools they need to run efficiently. \nCreating \n opportunities for youth", "Our board of directors assumes overall governance responsibilities for citizenship at Microsoft. Through most of FY12, the board’s Governance and Nominating committee handled oversight of all citizenship and public policy issues. As FY12 drew to a close, however, the board shifted citizenship governance to its new Regulatory and Public Policy committee, which is charged with overseeing public issues that may affect the company’s operations or performance in areas like human rights, climate change, and responsible sourcing. \nOur Citizenship and Public Affairs team manages our overall citizenship initiative, including stakeholder engagement. Part of our Legal and Corporate Affairs department, the 30-person team is responsible for driving new citizenship programs and engaging with colleagues and partners to keep our citizenship work vibrant. \nMore broadly, citizenship at Microsoft relies on the combined efforts of all our employees, including colleagues in dozens of other leadership roles, business and operational groups, and global subsidiaries. Together, they help us identify the issues that are most material to Microsoft’s business, develop and implement new strategies and programs, and monitor our progress. ", "Link_31\ntext", "LI_0", "LBody_4\nLBody_5\nLBody_6", "Link_32\ntext_2", "Link_33\ntext_3", "Link_34\ntext_4", "Link_36\ntext_6", "Link_37\ntext_8", "LI_4", "LBody_19\nLBody_20", "LI_6", "LBody_24\nLBody_25", "Link_48\ntext_26", "FY10 _2\nFY11 _1\nFY12 _1", "4,200 \n4,412 \n4,967 ", "7.5% \n7.8% \n8.9% ", "LI_12", "LBody_43\nLBody_44\nLBody_45", "LI_15", "LBody_50\nLBody_51\nLBody_52", "LI_16", "LBody_53\nLBody_54\nLBody_55", "In this section _5\n\n Impact of our operations Technology for the environment FY12 performance and\n\n FY13 commitments_1", "LI_23", "LBody_75\nLBody_76\nLBody_77", "L_25\nLI_25", "LI_28", "LBody_84\nLBody_85\nLBody_86", "Link_51\ntext_48", "LI_30", "LBody_89\nLBody_90", "LI_37", "LBody_113\nLBody_114\nLBody_115", "LI_39", "LBody_118\nLBody_119\nLBody_120", "Citizenship website\nthe Principles and Policies for Guiding Microsoft’s Participation in \nthe Public Policy Process", "TD_33\nTD_34\nTD_35", "TD_36\nTD_37\nTD_38", "LI_43", "LBody_126\nLBody_127", "LI_44", "LBody_128\nLBody_129\nLBody_130", "LI_47", "LBody_139\nLBody_140\nLBody_141", "As people use more and more \nRunning an efficient business requires \nSuccessful companies focus on key ", "devices to access digital information \na clear view of all information \nbusiness goals—not managing data ", "and online services, they need richer \nexchanges—no matter their type. \nstorage. We’re advancing cloud com-", "software platforms and applications \nWe’re advancing productivity and \nputing infrastructure, platforms, and ", "to power their experiences. We’re \ncommunications in the office with \napplications to help businesses of all ", "combining smart, connected devices \nsoftware developments that unify \nsizes focus their attention at the points ", "with cloud computing to seamlessly \nkey tasks, such as communications, \nof greatest impact. ", "connect devices and transform the user experience. Related offerings \ncollaboration, business intelligence, content management, and relationship management. \nRelated offerings Microsoft Dynamics Online, Microsoft SQL Azure, Office 365, ", "Windows Phone, Xbox 360, Surface, \nRelated offerings \nWindows Azure, Windows Intune, ", "SkyDrive, Xbox LIVE, Bing, Skype, and \nDynamics, Exchange, Lync, Office, Office \nand Windows Server ", "Link\nLink_0", "Link_1\nLink_2", "Link_3\nLink_4", "Link_5\nLink_6", "Link_7\nLink_8", "Microsoft Business $23.99B $22.51B $23.99B \nMicrosoft Office, Microsoft Exchange, Microsoft ", "Windows Azure\nMicrosoft SQL Azure", "Serving Communities \nWe’re helping create a better future for young people and fostering healthier, more vibrant communities worldwide. ", "Shape the \nFuture program", "Partners in \nLearning program", "Office 365 \nfor education", "Link_35\ntext_5", "Microsoft IT \nAcademy", "Imagine \nCup", "Link_38\ntext_9", "Link_39\ntext_10", "Link_40\ntext_12", "Link_41\ntext_13", "Link_42\ntext_14", "Link_43\ntext_16", "Link_44\ntext_18", "Link_45\ntext_19", "Link_46\ntext_21", "LI_7", "LBody_26\nLBody_27", "LI_8", "LBody_28\nLBody_29", "Link_47\ntext_25", "Office 365 _0\nfor Concern Worldwide", "Link_49\ntext_27", "In this section _1\n\n Helping employees make a difference FY12 performance and FY13 commitments", "TR_0", "TH\nTH_0", "TR_1", "TH_1\nTH_2", "TH_3\nTH_4", "In this section _2\n\n Providing assistance in times of need FY12 performance and FY13 commitments", "LI_13", "LBody_46\nLBody_47", "LI_14", "LBody_48\nLBody_49", "In this section _3\n\n Empowering people with disabilities Engaging students with special needs Improving seniors’ well-being", "LI_17", "LBody_56\nLBody_57", "LI_18", "LBody_58\nLBody_59", "LI_19", "LBody_60\nLBody_61", "Women and US minorities \nWomen in the global ", "in executive positions at Microsoft2 \nMicrosoft workforce ", "LI_24", "1.1 billion kilowatt-hours of green power in FY12—the third most of any US company, according to the US Environmental Protection Agency. \nLBody_78", "LI_26", "LBody_80\nLBody_81", "LI_27", "LBody_82\nLBody_83", "Mindy Lubber, President, Ceres \nCeres is a US-based coalition of investors, environmental groups, and other public interest organizations working with companies to address sustainability challenges such as climate change and water scarcity. ", "Link_50\ntext_47", "Microsoft Security \nDevelopment Lifecycle", "Link_52\ntext_50", "LI_32", "LBody_95\nLBody_96", "LI_35", "LBody_109\nLBody_110", "LI_36", "LBody_111\nLBody_112", "Technology Centers (CTCs) in their communities. To date, \n15 suppliers in 13 countries host CTCs in their facilities. ", "LI_38", "LBody_116\nLBody_117", "Annual board, committee, and \nNumber of board meetings held ", "individual member self-evaluations \nin fiscal year 2012 ", "Shares of Microsoft common \nRegistered holders ", "stock outstanding1 \nof common stock1 ", "LI_40", "changes in the policy environment and our business. Our FY12 policy agenda focused on Accelerating Economic Growth, Addressing Social Challenges, and Working Responsibly in the Information Economy. \nLBody_121", "LI_42", "LBody_124\nLBody_125", "Link_55\ntext_63", "LI_45", "LBody_131\nLBody_132", "Link_57\ntext_70", "Link_58\ntext_71", "Link_59\ntext_72", "Principle 1: Businesses should support and respect \nLink_60", "the protection of internationally proclaimed \nLink_61", "LI_49", "LBody_148\nLBody_149", "LI_50", "LBody_150\nLBody_151", "TH_10\nTH_11", "TH_12\nTH_13", "TR_13", "TH_14\nTH_15", "Windows Azure cloud platform \n365, SharePoint, Skype, Windows Phone, ", "31 \nLink_68", "61 \nLink_73", "Microsoft 2012 Citizenship Report ", "Cover: Participants at the 2012 Imagine Cup, Sydney, Australia. ", "To our stakeholders, ", "46 Our people ", "85 Reporting year ", "47\t Compensation and benefits ", "85 Scope ", "48 Diversity and inclusion ", "85 Additional reporting ", "50 Training and development ", "85 Feedback ", "51 Health and safety ", "86 United Nations Global Compact ", "Link_9", "53 Environment ", "Link_10", "54 Impact of our operations ", "Link_11", "58 Technology for the environment ", "Link_12", "61 Human rights ", "Link_13", "62\t Affirming our commitment ", "Link_14", "64 Privacy and data security ", "Link_15", "65 Online safety ", "Link_16", "67 Freedom of expression ", "Link_17", "69 Responsible sourcing ", "Link_18", "71 Hardware production ", "Link_19", "73\t Conflict minerals ", "Link_20", "74 Expanding our efforts ", "Link_21", "76 Governance ", "Link_22", "77 Corporate governance ", "Link_23", "79 Maintaining strong practices ", "Link_24", "and performance ", "Link_25", "80 Public policy engagement ", "Link_26", "83 Compliance ", "Citizenship at Microsoft ", "Serving communities ", "Working responsibly ", "Citizenship governance ", "Setting priorities and stakeholder engagement ", "\n Our Company", "\n Our Company", "Link_27", "Xbox LIVE", "Link_28", "Microsoft Dynamics CRM Online", "Link_29", "Bing", "Link_30", "Skype", "The Azure family of platform and database services, which helps developers connect applications and services in the cloud or onsite. These services include \n", "SharePoint, and Lync. ", "Initiating and embracing disruptive technology trends ", "Entering new product and geographic markets ", "Inspiring broad adoption of our products and services ", "To drive future growth, we focus our efforts on: ", "\n Our Company", "Provided access to relevant and affordable education technologies to 7 million young people worldwide through our \n", "Shared new learning approaches with 217 million teachers and students in 119 countries to date through our \n", "Advanced learning and collaboration among students and teachers around the world through free access to \n", "Skype in the classroom", "Connected 20,000 teachers and 600,000 students to a global community of other classrooms and guest speakers through \n", "Equipped students with the technology skills they need to succeed in today’s evolving workplace at the \n", "connecting youth to the resources they need, we can help them create more opportunities for themselves, their communities, and the world, and ultimately make a real impact for a better tomorrow. ", "Brought together more than 350,000 students from more than 260 regions and countries to participate in the 2012 \n", "Microsoft DreamSpark", "Supplied high school and college students, teachers, and schools with innovative designer and web developer tools through \n", "Awarded the 2011 Kodu Game Lab Cup to 10-year-old Hanna Wyman, whose game, Toxic, involved collecting coins and zapping pollution clouds to save the environment. Her innovative idea led to a meeting with President Obama in February 2012. ", "Imagine Cup teams", "Helped students adapt their ideas to real-world scenarios by providing selected \n", "Expression and collaboration are vital to helping young people grow skills and develop ideas that make a real impact. Encouraging young people through events and online communities can lead to innovation and better career opportunities in the future. ", "Microsoft Innovation Centers", "Accelerated career opportunities for students through free access to state-of-the-art technology facilities at more than 90 \n", "Microsoft Students to Business", "Brought career opportunities to more than 110,000 students in 69 countries by developing and reinforcing skills through the \n", "Microsoft BizSpark", "Helped young entrepreneurs launch new businesses by providing access to software development tools, industry connections, and investors through \n", "Students need the opportunity to put skills and training into practice. To build the foundation for future growth, we partner with industry and government leaders to match skilled youth with employment and entrepreneurship opportunities. ", "Decided to dedicate the majority of our cash contributions to nonprofits that serve the youth population (ages 6–24). ", "software donation ", "Improved social services through an enhanced \n", "connecting students, nonprofits, and donors that share similar goals. ", "\n Citizenship at Microsoft", "Microsoft YouthSpark Hub", "Launching the \n", "Give for Youth", "Launching \n", "Ongoing development of Innovate for Good, a global online community of youth dedicated to using technology to make a difference in their communities ", "governments, nonprofit organizations, and businesses around the world ", "Empowering nonprofits ", "GoodPC", "Gave families access to refurbished laptops for only $150 through the US Federal Communications Commission’s \n", "Provided refurbished PCs to UK citizens receiving certain government benefits and nonprofits for only £99 through ", "Access to a PC can change a person’s life—creating direct connections to education and employment. We’ve made PCs available to people who otherwise couldn’t afford them. ", "Sponsored the International Computer Refurbisher Summit, an annual meeting that brings refurbishers together to share knowledge. ", "Enabled members of the Computers for Youth Affiliate Network ", "\n Get Online @ Home", "$949M ", "$904M ", "Educated 1,300 NGO staff on how to get the most value from donated software via webinars conducted with TechSoup, with 94 percent stating they learned new skills and ideas. ", "Presented nine Social Media for Nonprofits (SM4NP) conferences ", "12,800 individuals. ", "Local Impact Maps", "Helped organizations increase employee and donor motivation through \n", "Improved the delivery of humanitarian aid to the world’s poor in some of the most remote areas by implementing \n", "RestartRomania", "Provided web and technology expertise to champion anti-corruption, rule-of-law, and transparency websites in Romania through \n", "scope of change nonprofits bring to the communities they serve. ", "\n Citizenship at Microsoft", "Expanding the reach of our software donation programs ", "Increasing the availability of our nonprofit cloud programs and services for nonprofits ", "Helping nonprofits understand and adopt new products, including Windows 8, Office, and Windows Server ", "Creating an ecosystem that increases the development and distribution of technology solutions for nonprofits ", "cloud to help their communities. We also shared information with NGOs and offered training about the cloud. ", "Employee giving ", "Note: Giving by employees in other countries is not reflected in the above US-specific data. ", "Contributed $100 million through our employee giving and company match program in calendar year 2011. Since 1983, employee donations and Microsoft matches have totaled $946 million, and we’re poised to reach $1 billion in calendar year 2012. ", "Encouraged employee giving and volunteering by offering company matching contributions for US employees—up to $12,000 for total time and cash donations. ", "Provided at least three days off for volunteering for employees outside the United States. ", "Increased employee giving participation to 64 percent in FY12, with more than 38 percent of that group contributing either $1,000 before corporate match or at least 60 hours of volunteer time. ", "Increased volunteering participation by 12.5 percent year over year. ", "Registered more than 10,000 employees and 2,000 nonprofit ", "Time and money can help almost any cause. Led by our employees, we make charitable giving to worthy causes a top priority. And we take our employees’ leadership seriously, which is why we match \n employee giving", "$43.7M ", "$40.8M ", "$48.9M ", "$44.5M ", "$52.2M ", "$47.6M ", "Employee volunteers ", "Percentage of US workforce ", "\n Citizenship at Microsoft", "Making it easier for employees and alumni to contribute their skills and expertise to local communities ", "Championing volunteerism and assisting the industry to advance and better adopt skills-based volunteering ", "Supporting our employees’ giving and volunteerism activities worldwide ", "We fell short on this commitment—the Net Impact program did not go beyond our Redmond campus. ", "Humanitarian response ", "Ensured aid was delivered to victims of the March 2012 earthquake in Turkey as part of a collaborative effort with the San Francisco Fleet Week Association. ", "Assisted the victims of the 2011 Japanese tsunami by improving ", "•\t Aided governments with disaster response using the Disaster Response Incident Portal, based on the Windows Azure cloud platform. The portal—developed by \n Microsoft Disaster Response", "Supported drought relief efforts in East Africa with more than $15 million in software donations, which were granted to NetHope and its member organizations working in the Horn of Africa region. ", "Accelerated critical first-responder decisions by developing ", "to the Japanese tsunami. ", "\n Citizenship at Microsoft", "Promoting better coordination through technology by expanding relationships across our industry and the humanitarian response community ", "Continuing to expand the technology solutions and services Microsoft can provide in time of disaster ", "Raising awareness for how technology can support personal, community, and organizational preparedness and response ", "assessments as well as support and services to help get their businesses back up and running. ", "Accessibility ", "Provided teachers with accessibility guides, curriculum resources, teacher training workshops, and articles explaining how to integrate accessible technology into the classroom. ", "Supported educators using Kinect classroom activities for special education students. Educators are enhancing classroom activities with attention-grabbing, body-moving experiences that help students stay engaged with curriculum. ", "Reported recommendations for providing accessible technology through our partnership with the United Nations Educational, ", "Educating students of all needs and abilities is one of a teacher’s most important—and challenging—responsibilities. We want all students to have access to the best learning tools available, and we work with teachers to make it happen. ", "Serving Communities ", "Working Responsibly ", "Our people ", "Added the Opposite Sex Domestic Partners (OSDP) benefit eligibility option for US employees and a tax gross-up benefit for both OSDP and Same-Sex Domestic Partner (SSDP) health coverage. ", "In the United States, maintained an industry-leading 87 percent participation in our employee 401(k) program. ", "compensation in company history, in part by shifting a portion of stock-award targets into employee base salaries. We also increased funding to deliver at least 100 percent of target bonus and stock awards for approximately 85 percent of eligible employees. ", "Equipped 2,000 Microsoft managers with skills and training focusing on conscious and unconscious bias to foster an inclusive workplace. ", "Inspired students from all backgrounds through youth programs such as Blacks at Microsoft Minority Student Day, DigiGirlz, and other opportunities to pursue science, technology, engineering, ", "A diverse and inclusive workforce makes change possible and pushes innovation forward. Bringing unique, powerful perspectives together allows differences to shine and similarities to emerge, helping us better understand and meet the needs of our diverse customers around the world. With this in mind, we’ve set priorities aligned with a strategic plan based on representation, inclusion, and market innovation. ", "Endorsed legislation to legalize gay marriage in the US state of Washington. ", "Expanded our ERGs—which include more than 10,000 members— with the addition of the new Generations at Microsoft ERG. ", "Business Unit at the April 2012 Microsoft Ability Summit. ", "1 Each icon represents 1,000 employees. ", "2.02M", "Increased employee visibility of our efforts through issuance of a more robust Employee Safety and Health Manual. ", "Enrolled 259 employees in 50 different employee health and safety training courses focused on chemicals, lead awareness, laser safety, and use of personal protective equipment. ", "Enhanced the ability of employees working in labs or in research and development to get quick and easy access to information about chemicals used at Microsoft by making nearly 1600 material safety data sheets available to them in the cloud. ", "Set an overall recordable incident rate (RIR) of 0.05, compared with the US average of 0.4. An RIR reflects the number of injury cases that required medical treatment beyond basic first aid. ", "We’re committed to facilitating a safe work environment for our employees. To us, that means establishing solid goals and targets for safety management and compliance. We seek to integrate sound safety and health practices into every aspect of our business, supporting the well-being of our employees, contractors, and customers. ", "Continuing to optimize our pay-for-performance culture ", "Offering learning and development to meet future business needs, support workforce agility, and enhance change-management capabilities ", "Advancing efforts to increase diversity in senior-level positions, with a focus on racial minorities in the United States and women globally ", "Enhancing managers’ skills for engaging a diverse workforce and creating inclusive work environments ", "Building US employees’ awareness of and confidence in the value of their employee benefits, including their health coverage ", "Environment ", "With the help of our employees, diverted 95 percent of the waste from dining facilities—and more than 80 percent of overall waste—at our corporate campus. ", "Reduced emissions and waste across our European supply chain, which resulted in receiving the Green Mover Award at the 2012 Irish Logistics and Transport Awards reception. ", "Educated employees about environmentally responsible practices through supporting more than 650 employee volunteers in our Sustainability Champions program. ", "Recognized employee environmental leadership initiatives by presenting the Environmental Sustainability Action Award to an employee or team every quarter of FY12. ", "•\t Eliminated approximately 9.9 million miles of car travel through employee commuting options at our Puget Sound, Washington, offices—including operating our own free commuter bus system. ", "Saved resources by developing modular data centers that use up to 50 percent less energy and consume only 1 percent of the water of traditional data centers. ", "Reduced energy by using free-air cooling and operating our data centers at higher temperatures. ", "Eliminated unnecessary components from servers within our data centers, and used higher-efficiency supplies, converters, ", "Minimizing data center impact ", "Helped reduce our reliance on electricity generated from coal and other traditional energy sources by purchasing more than ", "LBody_79", "Implemented a program that charges energy costs back to specific divisions for all labs in Puget Sound. The chargeback ", "Improving efficiency ", "Achieving carbon neutrality and net-zero emissions for our data centers, software development labs, offices, and employee air travel by increasing energy efficiency and purchasing renewable energy ", "Implementing an internal carbon fee that will place a price on carbon, based on current market pricing for renewable energy and carbon offsets, and ", "We adopted a cloud-based application that collects data from smart meters, utilities, suppliers, waste processors, and internal business systems. Analyzing this data will help us enhance our reporting processes and improve our environmental performance. ", "Sourcing more renewable power and continuing to implement our more sustainable Generation 4 modular data center designs ", "Rolling out an energy-management program to decrease energy use in the buildings on our campus in Redmond ", "of their carbon emissions ", "Human rights ", "Creating opportunity: Our products, services, and devices bring the power of technology to promote respect for human rights and help shape the human rights agendas of governments and business. ", "Acting globally: Our commitment is based on internationally recognized standards and respect for all human rights, including civil, political, economic, social, and cultural rights. ", "Engaging strategically: We believe our business can most effectively respect human rights through our presence in, rather than absence ", "establishes a common set of principles we can infuse into our business practices, with a focus on these four key priorities: ", "Microsoft BlueHat Prize ", "Fueled development of new, creative ways to keep hackers from exploiting software vulnerabilities. The \n", "Promoted industrywide adoption of \n", "protect their privacy. ", "Helped lead a collaborative, international effort to make the Internet a safer place for children as a founding member of the European Union CEO Coalition on Child Online Safety. The coalition’s priorities include developing age-appropriate privacy settings for online services, creating a more comprehensive content rating system for video games, and removing content that exploits children from the Internet. ", "grants", "Awarded six \n", "to find, report, and eliminate known child pornography images from their networks and helps law enforcement officers more efficiently identify and rescue victims and bring abusers to justice. ", "The Universal Declaration of Human Rights ", "The International Covenant on Civil and Political Rights ", "The International Covenant on Economic, Social, and Cultural Rights ", "The International Labour Organization Declaration on Fundamental Principles and Rights at Work ", "As a signatory to the UN Global Compact, Microsoft is committed to respecting all of the human rights described in: ", "Maintaining a comprehensive privacy program to minimize customer risk, foster compliance, and build privacy into our products and services ", "Strengthening consumer privacy and online safety by partnering with governments, NGOs, industry partners, and law enforcement ", "We completed Phase II of the GNI assessment, which focused on implementing and observing internal processes, advancing our commitment to freedom of expression and privacy on the Internet. ", "Advancing our work with industry, law enforcement, government, and nonprofit partners to fight cybercrime, online child exploitation, and human trafficking ", "Continuing our sponsorship of the Personal Democracy Forum, which shares knowledge on using technology in campaigns and civic organizing ", "Upholding our commitment to human rights as outlined in our Global Human Rights Statement, and annually communicating our progress ", "Identifying, preventing, and mitigating the human rights risks associated with our products and services ", "Conducting a GNI Phase III Assessment, which looks beyond reviewing internal policies to protect human rights, to assessing outcomes ", "•\t Hosting the fifth US-China Internet Industry Forum, bringing together leaders from government, industry, and NGOs to discuss issues such as free expression ", "Responsible sourcing ", "Fair, legal wages under humane conditions ", "A safe and healthy work environment ", "A workplace free of harassment, discrimination, or abuse ", "Freedom of association ", "No forced or child labor ", "Environmental and regulatory compliance ", "Business, legal, and anti-corruption protections ", "The \n Microsoft Vendor Code of Conduct (VCC)", "Shared experiences and best practices with suppliers on a number of workplace safety topics, including management of hazardous and toxic substances, electrical safety, emergency response plans, combustible dust, and use of personal protective equipment at a supplier forum in Shenzhen, China. ", "Directly engaged priority suppliers based on risk and compliance records to promote improved factory conditions and worker treatment at those suppliers’ sites. We sent a team of Microsoft senior management and health and safety representatives to China to meet with those suppliers, support their efforts to implement corrective actions, and help them build capabilities to address future issues. ", "Promoting a safe working environment ", "Explored ways to promote improvement in our suppliers’ social performance by launching a new reporting program. Under the program, we asked approximately 20 key hardware suppliers and service providers to use several Global Reporting Initiative indicators to document how their programs and policies meet our standards. ", "Provided people of all ages and abilities low-cost access to technology by partnering with suppliers to build Community ", "Continuing to enhance our programs to verify our suppliers adhere to our Vendor Code of Conduct ", "Consider further enhancing the transparency of our supplier auditing processes on labor and human rights issues ", "Supporting industry efforts to identify, reduce, and ultimately eliminate conflict ", "We strengthened our anti-corruption screening program for our entire supplier database and developed new ethics training programs for our suppliers. We also enhanced how we apply our Vendor Code of Conduct to strategic business process suppliers, such as customer support call centers. ", "Governance ", "Updated investors on developments in our corporate governance framework with annual letter from members of the board’s Governance and Nominating Committee. ", "Engaged on a biannual basis with investors, including public pension funds and socially responsible investors, which collectively held approximately 35 percent of our outstanding shares, and delivered a summary of investor feedback to the board. ", "Engaging proactively with stakeholders ", "Incorporated the Antitrust Compliance Committee into the Regulatory and Public Policy Committee, which will continue to oversee our compliance with competition law as well as additional legal, regulatory, and compliance matters such as human rights, environmental sustainability, privacy and security, business operations risks, public policy, and corporate citizenship. ", "Transferred the responsibilities of the Finance Committee for tax planning and compliance, investment policies, and investment risk management to the Audit Committee. The board has assumed the remainder of the Finance Committee’s responsibilities related to capital structure and capital deployment. ", "The board appointed two independent directors: John W. Thompson, CEO of Virtual Instruments; and Stephen J. Luczo, ", "of committees from five to four. ", "We engage in public policy discussions that relate to our business, and also update our public policy agenda every year to reflect ", "We regularly file reports that detail our advocacy activities in compliance with regulations and our commitment to transparency. Our disclosures include consultant fees, lobbying expenses, and trade-association dues related to advocacy. ", "We are a member of a number of trade associations and business coalitions that help us work with industry peers to advance issues that affect our business and society. A full list of the trade associations and business coalitions supported by our Legal and Corporate Affairs group is available on our \n", "Corporate participation in the public policy process is an important means of enhancing shareholder value and is fundamental to free and democratic societies. Our engagement in the public policy process is grounded in and guided by our unwavering commitment to strong corporate governance—centered on transparency, accountability, and compliance. ", "US public policy advocacy ", "$6,750,000 FY10 ", "$4,870,000 FY10 ", "Link_54", "Clear principles", "Political spending will reflect the company’s interests and be ", "Adhering to strict principles and policies ", "$728,000 ", "$238,550 ", "$505,800 ", "$451,000 ", "$118,210 ", "$317,950 ", "We comply with antitrust rulings and apply principles that support innovation, choice, and opportunities for developers regarding new products and services. ", "2012 Annual Report", "For information about acquisitions or our response to rulings, see our \n", "Competing responsibly within our industry ", "Ongoing litigation with Motorola Mobility in several countries. ", "Approximately 60 other patent infringement cases. ", "In July 2012, a trial court granted Microsoft’s motion dismissing ", "At any given time, there may be a range of legal actions pending against a company. Actions currently pending against Microsoft include: ", "Every year, we use a survey to measure employee satisfaction with ethical conduct training. The FY12 survey showed that employees scored the program 176 out of 200. ", "We promote employee awareness of business conduct policies through MS Policy, an online tool and central resource for all relevant information. ", "•\t In FY12, we trained more than 99.6 percent of our employees on our Standards of Business Conduct, which addresses topics such as anti-corruption, conflicts of interest, and financial integrity. ", "Governance ", "Maintaining or increasing dialogue between stakeholders and the company ", "Engaging in cross-industry forums to help us identify and contribute to the development of best practices ", "Continuing to enhance our corporate governance principles and policies to serve the interests of our shareholders and other stakeholders ", "Implementing the regulatory and disclosure requirements adopted under the Dodd-Frank Wall Street Reform and Consumer Protection Act ", "Upholding our unwavering commitment to strong corporate governance when participating in the public policy process ", "Maintaining leadership in corporate accountability, transparency, integrity, and responsibility by revising our principles, policies, and practices, as needed ", "In 2009, we voluntarily submitted our executive compensation to a shareholder advisory vote, which received overwhelming support. At the 2011 Annual Meeting, nearly 99 percent of the votes cast supported our say-on-pay resolution. ", "\n Our Company", "Internal assessments ", "Ongoing engagement with stakeholders ranging from socially responsible investors to our own employees ", "Requests for information by corporate responsibility rating agencies ", "The report covers our material citizenship issues based on: ", "Ongoing direct dialogue with a broad range of stakeholder groups, as well as with industry and issue-advocacy organizations ", "Updates to our \n", "Research and white papers on specific issues ", "Microsoft Local Impact Map ", "Economic impact data and hundreds of local impact stories through the \n", "Carbon Disclosure Project ", "An annual submission to the \n", "UN Millennium Development Goals ", "This report demonstrates our commitment to the \n", "In addition to these reports, we report on our actions in many other ways throughout the year. These include: ", "Our people, Human rights, ", "Responsible sourcing ", "human rights; and ", "Received best possible ratings from the Institutional Shareholder Services, Inc. Governance Risk Indicators in all governance risk categories, including board, audit, compensation, and shareholder rights. ", "Included on the Ethisphere Institute’s list of the World’s Most ", "(as of July 9, 2012). ", "Awarded Best overall governance, compliance, and ethics (large cap) honor at the Corporate Secretary magazine 2011 Corporate Governance Awards. ", "Ranked third on CR Magazine’s list of 100 Best Corporate Citizens, selected from all companies in the Russell 1000® Index. ", "Ethical Companies. ", "$504M ", "$99M ", "$844M ", "$105M ", "$804M ", "$99.6M ", "and Windows Live ", "Creating opportunities for youth ", "Humanitarian response ", "Empowering nonprofits ", "Accessibility ", "Employee giving ", "Our people ", "Responsible sourcing ", "Environment ", "Governance ", "Human rights " ]

[ "H5_6\nP_14\nSect_10", "H5_22\nSect_55\nP_120", "P_128\nSect_60\nP_129", "Japan: Removing the Digital Divide Between NPOs \nAt the Non-Profit Organization (NPO) Day held this April \nin Tokyo, a new program supporting the elimination of the digital divide between \nNPOs was announced. The NPO \nPartnership Program will provide IT tools and templates \nneeded for member and financial management, event \noperations, and daily work, as well as a digital literacy \ncurriculum to help NPO users acquire vital IT skills. \nAustralia: Helping Seniors Participate in the Digital Economy \nThe percentage of Australia’s \npopulation aged 65 and \nover is increasing, creating greater demand for accessible technology and training for seniors. The Australian Seniors Computer Clubs Association (ASCCA) is working to keep seniors engaged in the Australian economy by providing practical IT skills and knowledge training. With \n110 Seniors Centers under the Microsoft UP umbrella, ASCCA will train 16,000 Australian seniors in 2006. \nNew Zealand: Creating New Tools to Preserve Ancient Cultures \nThe Maori language in New Zealand was on the verge of extinction until a revival in the 1970s and 1980s. \nDespite the revival, it remains an endangered language. \nIn late 2005, Microsoft released a Maori Language Pack for Office 2003 and Windows XP to facilitate the \nuse of computers by Maori speakers. Microsoft’s work is an important step in preserving and promoting a vital piece of Maori culture for generations to come. ", "“Technology is playing an enormous role in \nhelping to mitigate the effects of my injury —from \nprostheses that help to simulate the functions of my \nlost hand and arm to Windows-enabled assistive \ncomputer technology that has made it possible \nfor me to resume my career,” Kuniholm said. \nHe has shifted the focus of his engineering work \nto creating innovative designs for prosthetic \ndevices that can be shared with amputees and \ndesigners in impoverished or war-torn areas such \nas Bosnia, Iraq, and Sierra Leone—places where \nthere are severe problems but few solutions. \n“There are an estimated 650,000 upper-extremity \namputees worldwide, most with no access to \nprosthetic devices,” he said. “I want to help \ndeveloping regions better serve their amputee \npopulations by providing designs for devices they \ncan build with materials they have on hand.” ", "Windows Vista, the newest version of the Microsoft Windows operating system, includes several new accessibility innovations. \nA new Ease of Access center helps computer users identify, locate, and turn on the built-in accessibility \nsettings and programs in Windows Vista. Also, by answering a few simple questions about their experience performing routine \ntasks, such as difficulty seeing faces on a \nTV or hearing conversation in a crowded room, users can receive a personalized recommendation for accessibility settings that may improve their computing experience. \nWindows Vista also includes new technologies, such as state-of-the-art Speech Recognition \nand Magnification, which can assist \nusers with a wide range of abilities. \nfounded in Riga, Latvia, to provide ICT training for people with disabilities and others in the community to help broaden their employment, educational, and communication opportunities. Four months later, \nWith Windows Speech Recognition, users can dictate documents and \nout forms on the Web using voice commands, and manage their PC and applications by saying what they see. Speech Recognition is designed to improve as people use it, adapting to their speaking style and vocabulary. \nMagnifier makes a portion of the screen from \n2 to 16 times larger to improve the readability of text for people with low vision. Instead of stretching an image to enlarge it, which often creates jagged edges and other distortions, Windows Vista enables users to enlarge buttons, \nicons, and other graphics to the size they find \neasiest to see with no loss of image quality. \nA new accessibility and automated testing model in Windows Vista, called Microsoft UI Automation (“UI” refers to user interface), reduces development costs not only for accessible and assistive technology (AT) developers, but also for application developers who make their software compatible with AT products such as screen readers for people who are blind. Microsoft UI Automation also improves product quality by providing increased testing support and a new way of doing automated UI testing for software developers. Microsoft Accessibility Resource Centers throughout the United States \nare available to help people with disabilities find \nthe accessibility settings and assistive technology products that are right for them. These low- or no-cost centers offer consultation and training. ", "The European Computer Driving Licence (ECDL) is an internationally recognized computer skills \ncertification program with about 2.5 million \ndifficulty attaining the certificate and were facing significant \ndisadvantages in the job market. To address this problem, Microsoft Austria and the Integrated Study Institute of the University of Linz worked with representatives from the public and private sectors to establish a new pan-European initiative called the European Computer Driving Licence for People with Disabilities (ECDL-PD), better known as the ECDL Barrier-free Access project. \nECDL Barrier-free Access is tailored to meet the unique challenges faced by people with visual, hearing, mobility, and cognitive disabilities. It allows them to work with assistive technologies —Braille displays or keyboard and mouse alternatives such as on-screen keyboards or hands-free mice for people who are paralyzed —although \nthe standards of certification are the same as for everyone else. The possible benefits \nof ECDL Barrier-free Access include: \n• Improved employment prospects for people \nwith disabilities who earn the ECDL certificate. \n• Reduced unemployment among people with disabilities, and less \nHelping People with Disabilities in Latin America \nPartnership in Opportunities for Employment through Technology in the Americas (POETA) is the latest program to emerge from the partnership between Microsoft and the Organization of American States, which began in 2001. POETA provides technology job training and job placement assistance at centers located throughout Latin America to young people and adults with disabilities. \nAt some centers, the program also serves other vulnerable populations, such as at-risk youth, women, and people from indigenous \nthat span 11 countries: Argentina, Colombia, the Dominican Republic, Ecuador, El Salvador, Guatemala, Honduras, Mexico, Panama, Peru, and Venezuela. \ntext_2\nL_0\ntext_3", "The Namys Foundation is an organization in Kazakhstan for people with disabilities and those who support them in their everyday lives. Working together, the Namys Foundation and Microsoft Kazakhstan used Unlimited Potential cash, software, and curriculum to open a CTC to provide ICT training to people with disabilities \nand others in the community. During the first \nyear, more than 130 people received computer skills training at the center. According to the foundation, nearly 70 percent of those trained had disabilities, and 43 percent of the trainees \nwith disabilities used their new skills to find jobs \nimmediately after completing their training. \n“All the telecentre.org partners have extensive experience of working in developing countries, but we know that we can achieve much more by collaborating and sharing information than by working independently. Microsoft’s expertise in providing training materials and in introducing technology outside traditional office environments will play a particularly important part.” \n— MARK SURMAN, MANAGING DIRECTOR, \nINTERNATIONAL DEVELOPMENT \nThe Microsoft Partnership for Technology Access (PTA) program is an innovative initiative that draws on the \nexpertise of governments, technology organizations, \nand financial institutions to make PCs more affordable. \nThe PC in Every Home initiative, a PTA program, has enabled Egyptians with no credit history to purchase PCs with low monthly payments. More than 250,000 PCs have been sold, and more than 1 million Egyptians \nhave gained digital skills and the chance for a better life. \nFilipino workers and their families the chance to own \ncomputers. The Computers for All Nigerians Initiative \noffers low-interest PC loans to government employees \nAccording to The Economist, five of every six people on the planet have no access to institutional credit. With its private- and public-sector partners worldwide, Microsoft is working to eliminate that barrier to digital inclusion. ", "on Microsoft’s commitment to meeting customer interoperability needs and the numerous ways Microsoft meets those needs, please visit www.microsoft.com/interop/. \nOpen XML Translator: Customer-focused Interoperability \nMicrosoft takes a customer-focused approach to product features such as interoperability, responding to customer needs for products and solutions that work well with those of other companies or the open source community. \nA good example is the new Open XML Translator project to create a technical bridge between the Open XML and OpenDocument (ODF) formats. Microsoft undertook this \nproject in response to requests from government agencies \nthat work with constituents who use the ODF format. \nWe are sponsoring the French IT solution provider Clever Age and several independent software vendors, \nincluding Aztecsoft in India and Dialogika in Germany, to develop the translators. The tools will be developed as open source software projects and housed for \ndevelopment work on Sourceforge, the open source software community Web site. \nWe are making the translator tools available as free, \ndownloadable add-ins for Microsoft Office 2007 and several older versions of the Microsoft Office System, \nwhich will enable our customers to read and write ODF files easily. Many Microsoft Office products already \ninclude built-in support for dozens of formats, which allows widespread interoperability. \nThe new tools also will be licensed as open source software and made broadly available to the industry for \nuse with other individual or commercial projects. These \ntools will accelerate the creation of innovations based on \nOpen XML and expand customer choice. ", "At Microsoft, we recognize that Internet companies have a valuable role to play in the realization of human rights, including free expression. It is important to our business that the Internet be fostered and protected as \na worldwide vehicle for reliable information and communications, personal expression, innovation, and economic development. Accordingly, we are deeply concerned about issues of individual security, privacy, and government control of Internet content. \nWe believe the availability of Internet services provided by Microsoft and other U.S. companies has increased the ability of people worldwide to engage in free expression. Just in the past few years, there have been repeated examples of the ways in which \nAt the same time, we continually review the overall value of our services in the countries where we provide them, and the conditions \ncreated by local government policies and practices. And we are actively engaged with concerned parties in developing principles to help guide companies in \nmanaging these difficult issues. \nOur perspective is that we will be served best as a company, as an industry, and as a worldwide community if we can be guided by clear principles and policies that address human rights and free expression not only in the case of blogging, search, e-mail, and \nother services that exist today, but also in the variety of technologies that almost \ncertainly will be offered in the years ahead. \nAs an example, in late 2005, the Chinese government requested that we remove a well-known blogging site on MSN Spaces written under the pseudonym of “Michael Anti.” The details of that case have been carefully reviewed, and although we do not think we \ncould have changed the Chinese government’s \ndetermination to block this particular site, we \nhave since clarified the manner in which we \nwill deal with similar requests in the future by adopting a policy that applies worldwide and is intended to promote three principles: Explicit Standards for Protecting Content Access. Microsoft will remove access to blog content only when it receives a legally binding notice from the government indicating that the material violates local laws, or if the \ncontent violates the service’s terms of use. \nMaintaining Global Access. Microsoft will remove access to content only in the country issuing the order. When blog content is blocked due to restrictions based on local laws, the rest of the world will continue to have access. This is a new capability Microsoft is implementing in the Windows Live Spaces infrastructure. \nTransparent User Notification. When local laws require the company to block access to certain content, Microsoft will ensure that users know why that content was blocked, by notifying them that access has been limited due to a government restriction. ", "Microsoft worked with Canadian police \nand international law \nenforcement agencies \nto develop the Child \nExploitation Tracking \nSystem (CETS), a unique and innovative software tool that helps protect children and reduce child exploitation online, and increases the effectiveness of investigators and police agencies. Using CETS, police agencies can manage, search, To develop CETS, Microsoft worked with law enforcement agencies around the world, including the Toronto Police Service and the Royal Canadian Mounted Police. Microsoft contributed technical expertise and resources to develop a system that was designed by law enforcement, for law enforcement. \nThe success of CETS as a tool to help \ninternational law enforcement officials protect \nchildren has attracted widespread attention. In June 2006, Indonesia adopted CETS after \nsending Indonesian police officers to Toronto \nto see how CETS was being used in Canada. Several other countries are considering deploying CETS, and more countries are expected to adopt the system in the near future. \n“CETS puts together the work of hundreds of police agencies in one place. The tool can establish links from the different agencies that police wouldn’t necessarily make.” \n—CORPORAL GARRY BELAIR, TECHNOLOGY \nMANAGER WITH THE ROYAL CANADIAN \nMOUNTED POLICE’S NATIONAL CHILD \nEXPLOITATION COORDINATION CENTER ", "Surfing Safely in Latin America \nIn Latin America, Microsoft teamed with the Ricky \nMartin Foundation to launch Navega Protegido to \npromote online safety for children. Martin, two-time Grammy Award winner and Goodwill Ambassador to \nUNICEF, taped three educational videos—each one in English, Spanish, and Portuguese—to provide \nchildren, teachers, parents, and other adult family members with the tools and information they need to protect children from online hazards such as \nsexual predators and inappropriate content. \nThe videos will be distributed over the Internet, at campaign events, and to millions of children throughout Latin America. Two of the videos address \nchildren 7 to 11 years old. The third video addresses parents, teachers, and other adult mentors. Both \nchildren and adults can find more information about Internet safety on the Navega Protegido \nWeb site at www.navegaprotegido.org. \nMartin, who is well-known for his commitment to \nchild welfare, established the Ricky Martin Foundation \nto advocate for children around the world in critical areas such as social justice, education, and health. The online safety campaign has attracted support from more than 40 major sponsors such as Visa, Intel, HP, and Citibank as well as many Latin American \ngovernments and businesses. Microsoft and the \nfoundation hope to expand the campaign globally. ", "P_54", "Microsoft Helps Neutralize Antinny Virus in Japan \nMicrosoft works closely with governments, law enforcement agencies, and industry partners around the world to limit the spread of computer viruses and the \ndamage they cause. But the Antinny virus was an unusual \ncase that illustrates the depth of our commitment to \nmaking computing a safe experience for all users. \nThe Antinny virus first appeared in Japan in March 2004, overloading Web servers at the Association \nof Copyright for Computer Software and forcing the group to shut down its site. The virus spread quickly through peer-to-peer connections to thousands of PCs that unknowingly attacked and overloaded servers at ISPs throughout Japan, threatening to make the Internet inaccessible to Japanese users. \nAfter struggling for a year to neutralize the virus, the IT community in Japan asked Microsoft for help. Some people worried that Microsoft might not want to get involved, since the virus was not affecting \nusers of Windows directly. But Microsoft responded \nimmediately, working with Japanese companies to \nisolate 30 different strains of the virus and to create a \nremedy that was added to the company’s Malicious Software Removal Tool for delivery to users. \nWhen the new tool was released, approximately \n40 percent of the damage caused by the virus was rapidly eliminated. Within a month, the virus \nhad been removed from more than 200,000 PCs, \nand before long that number had doubled. ", "about our views on this issue, please see our written testimony to the House International Relations Committee’s Joint Hearing, posted at www.microsoft.com/presspass/exec/ krumholtz/02-15WrittenTestimony.mspx. \nMicrosoft Government Leadership Forums \nMicrosoft Government Leadership Forums (GLFs) are regional events for government, industry, and academia \nto explore the use of information and communication \ntechnologies (ICT). GLFs provide a medium for government delegates to formulate successful strategies related to connected government, digital learning, employability skills, and the transition to the knowledge economy. \nIn fiscal year 2006, GLFs were held on three continents. Bill Gates gave keynotes at each event, focusing on \ntechnology trends that affect governments and their citizens. \nIn New Delhi, at GLF Asia, Microsoft announced a worldwide network of 90 Microsoft Innovation \nCenters designed to fuel long-term economic growth in regions where the centers are located. \nThe Honourable José Manuel Barroso, President, European Commission, was among the speakers at GLF Europe, in Lisbon. Jean-Philippe Courtois, President, \nMicrosoft International, announced the formation of the \nEuropean Alliance on Skills for Employability as part of Microsoft’s 21st Century Skills for Employability initiative. \nMicrosoft formalized its commitment to the Partnerships for Technology Access initiative (see the PTA story on \npage 29) during GLF Americas, held in McLean, Virginia. \nFiscal Year 2007 began with GLF Africa, held in Capetown. Bill Gates and former U.S. President Bill Clinton highlighted \nthe critical role that ICT and public-private partnerships play in creating a strong, vibrant future for Africa. ", "Our mission is to enable people and businesses throughout the world to realize their full potential. For more than 30 years, we have built our company on that principle, providing innovative software and services that help people do more with technology, and creating innovative partnerships that extend those \nbenefits to millions of people we never \ncould have reached by working alone. \nInnovation is an integral part of our business. It characterizes our technology platform, which enhances personal productivity and business performance while supporting accessibility that makes it easier for people with all abilities to see, hear, and use computers. Innovation also \ndefines our partnerships. These partnerships \nstrengthen communities worldwide by \ndeveloping the workforce and helping to build \nthey work to bring the benefits of technology \nto one-quarter of a billion underserved people globally by the end of this decade. \n“Technology is an extremely powerful tool, a grand enabler of human imagination, innovation, creativity, and productivity. Creating innovation with real impact, listening carefully to what our customers want, and creating amazing products that are going to benefit as many other people on the planet as possible —that’s really the reason Microsoft exists. Innovation is the lifeblood of our business.” \n— STEVE BALLMER, CEO MICROSOFT \nWe are proud of our achievements as an industry leader, a global citizen, and an active partner to thousands of governments, businesses, and community organizations around the world —but our work is just beginning. Our success in business has given us the opportunity, and the responsibility, \nto use our resources and influence to help \nchange the world, to make it a better and more rewarding place for people everywhere. \nWe look forward to the challenges —and ", "Through innovative partnerships with governments, educators, NGOs, and other industry leaders, Microsoft is expanding digital inclusion. We do this by providing technology access and skills training to a wide range of people in different life circumstances —from educators and students who teach and learn in traditional classroom settings to the unemployed and underemployed, women and youth, and people with disabilities who learn in community technology centers (CTCs). \nWe work closely with NGOs worldwide, \nfinding ways to help them build their capacity \nand extend their services to more people. \nWe make sure our products are accessible to \npeople who may have difficulty using standard \ntechnology because of physical or cognitive issues, whether they experience only mild impairments or severe disabilities. And we provide a platform that enables other companies to develop innovative devices that make it easier to see, hear, and use a computer. \nWe’re also working with partners to grow the local software economy in thousands \nof communities across more than 100 \ncountries worldwide, and to develop a workforce of highly skilled people who can \nsupport and benefit from those businesses. \nThe knowledge economy offers immense \nopportunity for people and businesses in all parts of the world to build better societies \nand better lives. As a global technology leader and responsible global citizen, Microsoft is committed to helping countries \nand communities advance their goals of human and technological development. ", "Microsoft has been a leader in accessible technology design and development since 1988. We develop software and tools that make it easier for people to see, hear, and \nuse their personal computers, and we \nnever stop working to make Windows an \noutstanding platform that other companies \ncan use to develop accessible technologies. \nOriginally, accessible technology was viewed exclusively as a tool to assist people with disabilities, and that is still one of its most important functions. Today, however, the demand for accessible technology is expanding, as more people with mild or moderate impairments realize all of the ways accessible technology can help them adjust their computers to make them easier and more comfortable to use. \nAlthough the benefits of accessible technology \nare not limited to people who experience \nphysical or cognitive difficulties, addressing \nthe needs of people with a wide range of \nabilities gives us deeper insights into the \nchallenges all consumers face as they interact with technology. As a result, Microsoft is able to create software that is more functional for \neveryone while continuing to address the \nunique needs of people with disabilities. \nBefore technology can empower people with disabilities, or anyone else, they have to know how to use it. Microsoft has created innovative partnerships and programs throughout the world to provide the training and technology that people with disabilities need to transform their lives and realize their potential. ", "Like many corporations around the world, Microsoft and its employees are generous with donations when disaster strikes. Our employees drive and direct the company’s relief efforts and often serve as volunteers on the front lines of disaster relief. \nWhat really distinguishes our approach to disaster relief, however, is the use of business and technology expertise to address some of the critical challenges faced by individuals and communities following a natural disaster. Our business is developing technology solutions \nfor real-world problems, and we also apply that knowledge and experience to disaster relief. \nIn disaster relief, as in business, we work in partnership with others. When Hurricane Katrina hit the Gulf Coast \nof the United States, Microsoft worked with the American Red Cross to create a \n“people finder” solution called \nKatrinasafe.org, now Safe and Well (disastersafe.redcross.org). This Web-based solution reunites families and communities and has registered more \nthan 300,000 Katrina evacuees. It is also \nbeing used to help provide relief to victims \nof the Pakistan-India earthquake. \n“Creating a Web site and database like Katrinasafe .org would normally take months, and our teams put it together in less than four days,” said Gerri \nElliott, Corporate Vice President, Worldwide \nPublic Sector at Microsoft. “In the first 24 \nhours, more than a thousand people checked \nthe site for information on their loved ones.” ", "Environmental \nstewardship is an \nimportant part of \nour business. Over \nthe past 30 years, \nwe have translated \nour personal beliefs and corporate philosophy into meaningful environmental action. This year, we have furthered our commitment to the environment, focusing our efforts on sustainability and continuing innovation. \nAs of December 31, 2005, we eliminated PVC (polyvinyl chloride) from all our packaging. We also have reduced our overall use of plastic clamshells by 70 percent, and continue to explore the use of sustainable packaging and biodegradable materials. We reduced fuel consumption and greenhouse gas emissions through a variety of strategies, including employee commuter programs and \nreplacing nearly half our fleet of passenger vans with fuel-efficient hybrid cars. \nWe also continued to create productivity and \ncommunication software that contributes to lowered greenhouse gas emissions by reducing the need for business travel, as well as operating systems with features that can decrease PC energy use by more than 50 percent. In Windows Vista™, for example, users can choose any of \nthree preconfigured power plans that balance performance and power consumption in different ways —in effect, creating a custom power plan tailored precisely to meet their needs. \nIn February 2006, we adopted the Microsoft Environmental Principles, which formalized our ongoing commitment to protect our \nenvironment and natural resources as well as the health and safety of our employees, our customers, and local communities. Every Microsoft employee shares the responsibility of \nhelping the company fulfill these principles. ", "This year, Microsoft took its security message on the road —from Asia to Europe and across the United States. \nDuring a security tour through the Philippines, Thailand, Malaysia, Indonesia, and Vietnam, Microsoft discussed common security issues \nto the specific challenges and needs of each \naudience, Microsoft shared its latest security strategies with more than 3,400 professionals. \nMicrosoft CEO Steve Ballmer traveled to Berlin for the second summit on security and the information society in Germany. As part of PC security check available to everyone in Germany, Microsoft organized a truck tour through major cities. At each stop, people could consult with IT professionals and perform \na full security check on their PCs. To enable security checks for other Germans, Microsoft distributed CDs and videos, \nprovided online and offline \nchecklists, and worked with a \nnetwork of certified consultants. \nIn Sweden, the Livstid (Lifetime) Project —a partnership between Microsoft, the Swedish Media Council, and the Swedish \nNational Agency for School Improvement —educated teachers and students about the risks young people may face when they use the Internet. \nAnd the Get Net Safe Tour —a joint initiative of a dozen business, government, and \nnonprofit partners —visited 12 major \nU.S. cities to raise public awareness about computer security and Internet safety. ", "Child Safety—Employee Volunteering \n“The impact was astonishing—all groups were attentive and engaged with the materials. Many had not made the link to strangers…the local PC was excellent and was able \nto connect my online world to their offline experiences.” \n“Anyway, thanks for giving me a chance to put something back. I have really enjoyed my day and will look to see how else I might get the message \nacross through my school governor network.” \n“My final comment would be just to say that this was the BEST and most fulfilling community activity I have ever undertaken during my eight years at Microsoft.” \n“I’ve just—five minutes ago —finished three \nruns of this presentation to a total of 840 pupils in years 7, 8, and 9 at Philip Morant school in \nColchester. The impact was astonishing.” \n“The children did you proud, and I can honestly say it was one of the most rewarding days I have \nhad in the 12 years I have been at Microsoft.” \n“The school was enthusiastic; we did all three year groups—as well as a staff session at lunchtime and a parents session. The school will use the Know IT All resource kit almost immediately; they \nare doing Internet safety this week in IT.” \n—Microsoft UK employees at the Getting to Know IT All volunteer event ", "P_65\nP_66\nP_67\nP_68", "Microsoft is committed to helping nations and communities worldwide build vibrant local software economies. As part of that commitment, we establish and operate regional research centers to support and inspire technology innovation among local companies, and we regularly host Innovation Day events in different parts of the world. Two \nevents in fiscal year 2006 —the Microsoft \nEuropean Research and Innovation Day and the India Is Innovation summit —illustrate the strength of our commitment and the value of our ongoing involvement with local economies and industries around the world. \nThe India Is Innovation event took place in Bangalore, India, in April 2006, just four months after Microsoft Chairman Bill Gates opened the city’s new Microsoft Innovation Center. The center provides startup companies with resources, guidance, and end-to-end tools to help them become commercially successful and transform innovative ideas into intellectual property. The India Is Innovation event built on that theme by focusing on Indian startup companies and how they can design and build world-class software products and solutions. \nMore than 150 Indian companies participated in the event, which brought together software entrepreneurs, venture capitalists, academic incubators, researchers, and industry analysts. Microsoft also provided a \nstartup showcase, where fledgling software \ncompanies could present their ideas and proposals to a panel of venture capitalists in the hope of securing funding. \n“We hope that initiatives such as these not only create greater respect for intellectual property rights creation among Indian companies, but also serve as an impetus to helping them create intellectual property out of great ideas, and realize their true potential.” \n—RAVI VENKATESAN, CHAIRMAN, MICROSOFT INDIA \nThe annual Microsoft European Research and Innovation Day, held this year in Brussels, achieved two key goals. First, it served as a showcase for some of the world’s most exciting next-generation technologies in areas such as mobility, security, and interoperability. Second, it gave European software companies and entrepreneurs an opportunity to interact with leading researchers, academics, and policymakers; to get a glimpse of emerging technologies; and to see how innovation leads to economic growth and job creation. \nIn his keynote address at the event, Jean-Philippe Courtois, President of Microsoft International, said that Microsoft has been conducting Ramp;D in Europe for nearly a decade because Europe consistently produces “some of the brightest thinkers, most dedicated universities, and most innovative partners in the world. \n“In this global age, Europe will need to be not only a good place to do business, it must be a great place to innovate, too,” Courtois said. “The products and ideas coming out of our European research laboratories illustrate that Europe still has great potential and is not only thriving, but is at the forefront of thinking in the IT sector.” \n“This agreement [Microsoft’s collaboration with the UNWTO to support tourism in developing countries and on the continent of Africa] is a huge leap forward for tourism-driven job creation, export income, and capacity-building for the world’s poorest countries —especially in Africa, where it will be integrated into our programmes to alleviate poverty through sustainable tourism. It links Microsoft’s technology and solutions with UNWTO’s central role of advancing the sector as an instrument of development.“ \n—Francesco Frangialli, Secretary General of United Nations World Tourism Organization (UNWTO) ", "H5_54\nP_176\nP_177\nP_178\nP_179\nP_180\nP_181\nP_182", "Helping Law Enforcement Officials \nTrack Cybercriminals \nMicrosoft launched the Global Phishing Enforcement Initiative to expand its ongoing efforts to prevent \nand prosecute Internet fraud worldwide through consumer protection and innovative partnerships with governments, law enforcement agencies, and various \nindustries. In fiscal year 2006 alone, Microsoft initiated legal action against more than 100 alleged online criminals in Europe, the Middle East, and Africa. \nIn January 2006, for example, the National Services to Combat Organized Crime (NSCOC) in Bulgaria \narrested eight individuals for allegedly running an international phishing operation that stole \nmore than $50,000 from MSN users in the United States, Germany, and the United Kingdom. \nNicknamed the MBAM (Microsoft Billing Account \nManagement) Gang by investigators, the cybercriminals \nallegedly contacted MSN customers with e-mail messages that looked as though they were sent by MSN \ncustomer service representatives. The phishers, who \nlaunched attacks in 11 countries, asked MSN users to update personal financial data, and then used the stolen information to make purchases or initiate express money transfers. Microsoft assisted the NSCOC by providing investigative and technical support, enabling Bulgarian authorities to identify and arrest MBAM Gang members. ", "P_90\nP_91\nP_92\nP_93", "H5_17\nP_107\nSect_48\nP_108\nH5_19\nP_109", "committed to designing and licensing Windows (and all the parts of the Windows platform) on terms that create and preserve opportunities for applications developers and Web site \ncreators. This encourages the development of more innovative products on the Windows platform —including products that directly \ncompete with Microsoft’s own products. \nInteroperability for Users. Microsoft is committed to meeting customer interoperability needs and will do so in ways \nthat enable customers to control their data \nand exchange information with improved \nsecurity and reliability across diverse \ncomputer systems and applications. \nSmith said it is critical for Microsoft and regulators to engage in discussion with a goal of resolving issues during product development and before the release of new products. “We are committed to providing information about new technologies to regulators, so we can pursue an open and constructive dialogue before the launch of these new products. Given the global nature of the knowledge economy, we recognize the importance of providing this information on a global basis.” \nSmith also stressed that the Windows Principles are not intended to supplant the continued application of antitrust law or the important role of government agencies and courts in applying and enforcing this law. \nTo make certain that the Windows Principles \ncontinue to reflect current technological, \nbusiness, and legal developments, Microsoft intends to review them at least once every three years to determine if any new tenets should be added or existing ones revised. To ensure transparency, any changes will be published on the Microsoft Web site. ", "H5_7\nP_15\nH5_8\nP_16\nH5_9\nP_17\nSect_11", "We are building parental controls into many of our most popular products and services, including Windows Vista™, Windows Live™, Xbox®, and MSN. These controls help parents protect their children from inappropriate content and unwelcome contacts online. Our parental control tools also incorporate guidance from recognized experts, including advice about age-appropriate content from the American Academy of Pediatrics in Windows Live and game ratings from independent ratings boards such as the Entertainment Software Rating Board in Xbox and Xbox 360™. \n“For Microsoft, family-safe computing is essential to what we do every day. We interact with parents and kids across all of our consumer products, because we want them to have a great experience with our technology. We want them to have fun and we want them to learn, so it is important that we provide the tools and information they need to make intelligent choices and to feel comfortable with the technology they’re using.” \n—ROBERT (ROBBIE) BACH, PRESIDENT, \nENTERTAINMENT AND DEVICES \nWindows Live and Windows Vista Parental Controls \nMicrosoft is incorporating parental \ncontrol tools into products like Windows Live and Windows Vista to help families create a safer, more secure, and more enjoyable online experience for children. These tools enable parents to control and monitor their children’s Internet use by creating customized settings that are appropriate for each child and by reviewing reports on his or her Internet use. \nWindows Live Family Safety Settings is a Web-\nbased service that includes Web content filtering, \nactivity reporting, and contact management features. These settings apply to online content and services, including other Windows Live services such as MSN Messenger and MSN Spaces. Microsoft will make Windows Live Family Safety Settings available at no charge and, because it is part of the Windows Live Web-based services, users can access settings and reporting functionality from any PC connected to the Internet —offering parents \ngreater flexibility in how they monitor and \nmanage their children’s online activity. ", "and consulting firm. The average annual \nincome of people living and working in China’s cities is more than three times that of those in rural areas. As a result, more than 10 million people each year leave the country to seek Because many of the migrating Chinese are uneducated and lack basic skills, they end up in low-paying urban jobs. According to the Progress Strategy report, if the migrant workers remain disenfranchised they could end up undermining \n“the sustainable and stable development of the national economy.” To help prevent this outcome, the Chinese government is aiming to provide 30 million migrant workers with vocational training by 2010 —and Microsoft is committed to helping China achieve that goal. \nThe Xicheng CTC, located in the Xicheng District Library in Beijing, opened in June 2004 with 40 workstations. Through Unlimited Potential, Microsoft provided the computers, software, and additional funding. The Xicheng CTC was the \nfirst CTC in China, and the program has since \nbeen expanded to include four new rural CTCs \nand five new urban CTCs. \nAfrica — Offering Hope to Disadvantaged Women and Youth in 43 Countries \nThrough Unlimited Potential, Microsoft has collaborated with NGOs and IGOs, as well as local partners, to provide resources to more than 1,000 CTCs in 43 African countries. Microsoft has invested more than More than half of these projects are designed to help young people, who represent a majority of the population in Africa. Another third are aimed at training women, and the rest are focused on training refugees, children, and underserved communities. To further serve disadvantaged youth, women, and refugees in African \nAt the Microsoft Government Leaders Forum Africa 2006, Microsoft Chairman Bill Gates announced that Microsoft is collaborating with global and local organizations —such \nas the United Nations World Tourism Organization (UNWTO), the United Nations Industrial Development Organization (UNIDO), and the New Partnership for Africa’s Development (NEPAD) —to help African governments create sustainable economic growth by providing ICT training to more than 45 million people in Africa by 2010. \ntext_1", "India is a perfect example of the need for digital inclusion. Although there are thriving technology sectors throughout the country, state-funded schools in poorer areas have no computers and most teachers have little or no ICT training. \nProject Shiksha, launched by Microsoft Chairman Bill Gates in 2002, is a Partners in Learning–sponsored IT Academy program designed to provide computer literacy for more than 80,000 teachers and 3.5 million students throughout India over \na five-year period. Microsoft has made a \n$20 million investment in the project. \nin basic IT skills that includes instruction on how to use the Internet, e-mail, and popular software products such as Windows XP and Microsoft Word, PowerPoint®, Paint, and Excel®. The teachers also learn how to integrate technology into their lesson plans and classroom instruction. \nTeachers who have taken the course say that \nboth they and their students benefited from \nthe program. The teachers gained more \nconfidence and left the Microsoft IT Academy \neager to share their new skills. Energized by the \ntraining, teachers are motivated, which, in turn, \nmotivates students and improves attendance. ", "Microsoft Research: Empowering Academic Researchers to Change the World \nBesides working to solve complex computer science \nproblems and developing innovative technologies, \nMicrosoft Research (MSR) also finds ways to \ninspire and engage the academic community. \nAs part of the company’s efforts to increase digital \ninclusion by expanding global access to technology and skills training, MSR created a $1.2 million \nfunding opportunity for academic researchers. In \nOctober 2005, MSR issued a request for proposal (RFP) to encourage academic research that explores \nhow technologies can help people around the world reach their potential by making computing more accessible, affordable, and relevant to their cultures, communities, and everyday lives. \nFour months later, Microsoft named the 17 digital \ninclusion RFP winners from teaching universities in ", "P_117\nP_118\nP_119", "P_124\nP_125", "(UP), our two global flagship programs for \neducation and digital inclusion. The early \nsuccess of these two programs inspired us to \nset our ambitious goal of bringing the benefits \nof technology to one-quarter of a billion underserved people around the world by 2010. \nToday, Partners in Learning and Unlimited Potential programs are under way in more than 100 countries around the world. Through innovative partnerships with governments and NGOs, we have trained more than 20 million people through UP, and 24 million teachers and \nstudents through Partners in Learning, reaching \na total of 135 million people around the world. \nPartners in Learning provides students, educators, and local governments worldwide with the resources they need to make technology an integral part of classroom learning and instruction. Partners in Learning programs provide the IT skills training, software, curriculum, and professional development resources that educators need to inspire and Unlimited Potential is designed to provide underserved populations with IT education and skills training through community-based technology learning centers around the world. In the three years since the UP program began, Microsoft has provided cash grants, software donations, and technical support and training to some 17,500 community technology centers in more than 100 countries, many of them \nspecifically targeted at workforce development. \nefforts. Both provide technology skills training that empower people to transform PCs into tools that can help them learn, build better livelihoods, and improve their lives. ", "At Microsoft, our mission is to help people and businesses throughout the world realize their full potential. We know that if people have the right tools, they can accomplish almost \nanything. But tools alone won’t enable people \nto build a better life and reach their dreams. They also need the skills to use those tools. \nIt is that understanding, along with our experience and success in providing technology training to millions of people of varying circumstances and abilities, that has given us \nthe confidence to make a bold commitment: to bring the benefits of technology —and \ntechnology skills —to one-quarter of a billion underserved people worldwide by 2010. \nNations everywhere are striving to harness the opportunities and meet the challenges \nof the twenty-first-century knowledge \neconomy. They are focused on promoting job growth and workforce training, encouraging the development of local industry, and enhancing their global competitiveness. \nGovernments around the world understand that addressing these issues today will provide a solid foundation for growth and prosperity tomorrow. And because computer operating systems and applications are the engines that drive the knowledge economy, many of these governments’ economic development strategies center on increasing digital literacy and technology usage among all their citizens. \nMicrosoft is working in partnership with governments and leading companies in the United States and around the world to develop innovative solutions to the workforce problems we all share. We know that creating economic opportunities for nations, communities, and businesses worldwide begins by opening doors of opportunity for individuals. ", "P_83\nP_84\nP_85\nP_86", "Yet our commitment to integrity, transparency, and social accountability in our business practices goes far beyond meeting the expectations of professional observers. People care about our business. Microsoft products \nare in homes and offices all over the world, \nwhere millions of people rely on them for work, \nentertainment, and personal fulfillment. Our \nshareholders and employees are invested in our vision and continuing success, and a growing number of people worldwide are being empowered by innovative Microsoft programs \nthat bring them the benefits of technology. \nThe foundation for all of the work we do is \nour unwavering commitment to responsible \nand ethical business practices —and we \nstrive daily to maintain the highest possible \nstandards in every aspect of our business. ", "For many years, \nMicrosoft has \nbeen committed \nto constructing \nenergy-efficient \nand eco-friendly \nbuildings at its corporate facilities. But recently we took big steps forward at our campuses in Silicon Valley, California, and Hyderabad, India, and our newest data center under construction in Quincy, Washington. \nAt an Earth Day celebration in April 2006, \nemployees at the Microsoft Silicon Valley Campus (SVC) unveiled a new solar panel power system —the largest in Silicon Valley. The system has 2,288 solar tiles covering 31,000 square feet on building roofs across \nthe campus. It generates 480 kilowatts per hour at peak capacity —enough to power \nnearly 500 homes —and will provide 15 percent of the energy used at SVC. ", "H5_27\nL_4\nP_138", "Creating jobs and developing a thriving high-tech industry are top economic priorities for the German government, yet the number of new high-tech companies in Germany has been decreasing steadily since 1995, according to a German economic research institute. \nOne goal of the Microsoft Founder Initiative is to support the business development of high-tech founders and startup companies, enabling them to achieve above-average growth and create good jobs in Germany. Another goal is to showcase these companies as examples of how technology innovations can become the basis for successful businesses and to encourage the founding of more high-tech companies. \nThe Microsoft Founder Initiative operates as \na public-private partnership. Basic support for the startup companies is provided on a regional basis. Microsoft works closely with regional governments, and many of the startup \ncompanies receive some funding from public \nsubsidy banks along with matching funds from venture capitalists or other private investors. \nBy June 2006, the Microsoft Founder Initiative was supporting 18 initiatives at both the federal and regional levels and had mentorships for 12 startup companies. The goal is to \nhave 20 mentorships in fiscal year 2007. \n“In Bavaria we have been successful in the past years with our focus on innovation —and we also owe this to the support of companies such as Microsoft.” \n—EDMUND STOIBER, BAVARIAN STATE PRIME MINISTER ", "Sect_64\nP_135", "Microsoft does business all around the world. \nWe have offices in more than 90 countries, \nWe also have operational centers in Dublin, Ireland; Humacao, Puerto Rico; Reno, Nevada; and Singapore. The operational centers are responsible for licensing, operations and logistics, and manufacturing, although not every center performs all of these functions. \nL_6\ntext_7\nL_7\ntext_8", "H5_44\nP_163\nH5_45\nP_164\nH5_46\nP_165", "and offline experience —even when they are \naway from home. The Family Safety Settings for Xbox 360 and Xbox Live support all major game ratings systems used in every part of the world —from the United States to Australia. \nIn addition to building Family Safety Settings into the Xbox 360 console, Microsoft \nhas partnered with elected officials, \nnongovernmental agencies, and retailers to educate consumers about Family Safety Settings and other resources that parents can use to protect their children from inappropriate video game content. The campaign includes \na digital literacy curriculum for parents, a grassroots effort to reach families in their \ncommunities, and a toolkit for retailers. This initiative is part of Microsoft’s ongoing \ncommitment to promote responsible gaming. \ntext_0", "The Security Development Lifecycle (SDL) is a process designed to train Microsoft developers, testers, and program managers to develop \ncode that is more secure, and to test and review Microsoft products for security. SDL includes mandatory security checkpoints at each phase \nof software development for many of our products, and a rigorous security review that products subject to SDL must pass before they \ncan be released. The SDL process is continually improved and updated with best practices and \nnew information learned from the Microsoft Security Response Center, which provides rapid, targeted security responses whenever \nsoftware vulnerabilities are discovered. \nWindows Vista, Microsoft’s next-generation operating system, builds on a 30-year legacy of technical excellence, industry collaboration, and customer-focused product development to deliver the most secure version of Windows ever. Built to be more secure from the ground up, Windows Vista introduces important new features and functionality designed to provide layered defenses against malware threats, intrusions, and data breaches. It provides corporate and personal data enhanced protection from hackers, malicious software, and theft. \nOne of the most recent security innovations from Microsoft is Windows Live OneCare, an \nrange of maintenance tasks and provides automatic security updates, antivirus and firewall protection, and backup and restore features, so that customers can focus on enjoying their online experience without worrying about how to keep their PCs running smoothly. ", "A Call for Federal Privacy Legislation in the United States \nIn November 2005, Microsoft Senior Vice President and General Counsel Brad Smith \nappeared before the \nU.S. Congressional Internet Caucus to advocate federal \nprivacy legislation. The proposed legislation \nwould not only coordinate privacy protections within the United States, but also harmonize and align U.S. protections with those offered by countries around the world. Smith said federal privacy legislation should establish baseline privacy protections for consumers and also provide organizations with a uniform standard on which they can build effective privacy policies and compliance efforts. \nBut the potential of information technology to drive further social and economic advances depends on building and maintaining a solid foundation of trust. Individuals will not take full advantage of the Internet or any other commercial medium if they believe their personal information could be compromised. Effective federal legislation will help provide \nconsumers with the confidence and knowledge \nthat the legitimate companies they do business with are following an established set of privacy practices. Smith told the caucus that Microsoft believes it is the right time for federal privacy legislation because it has become increasingly clear that a comprehensive approach is needed to help protect consumers from identity theft and other misuses of their personal information. ", "Microsoft explained how the Internet is transforming childhood worldwide, making online safety for children important to all nations. Microsoft proposed a strategic \n§\tBuilding a legal framework to protect children by broadening each nation’s existing laws to include online safety \n§\tInvolving many different stakeholders, from parents and teachers to government agencies \nand law enforcement officials \n§\tWorking through NGOs at the grassroots level \n§\tIncreasing public awareness and providing clear guidelines for keeping children safe online \nIn addition, the U.N. and Microsoft jointly developed a toolkit that can help any country or organization set up and maintain an Internet Safety Program to educate and support children, parents, teachers, and community leaders. The toolkit includes training materials, educational resources, and activities. It was launched at \nthe official presentation of the U.N. Secretary \nGeneral’s report on Violence Against Children in ", "P_114", "productivity gains that other businesses and organizations realize by using IT and through \nthe indirect contributions of IT firms. Studies \nhave shown that for every dollar of revenue \ngenerated by these firms, additional revenue \nis generated upstream and downstream in supporting supplier and service industries. \nEnabling IP opportunity is based on acting responsibly and ethically, respecting the IP rights of others, and fostering a climate in which IP rights are respected by all. One of the most fundamental IP rights is the right for those who create something to decide how it is used. \n7 IDC, Expanding the Frontiers of Our Digital Future: Reducing \nSoftware Piracy to Accelerate Global IT Benefits, December \n2005 (commissioned by the Business Software Alliance). ", "and detailed explanation of the Windows Principles are available at www.microsoft.com/presspass/ newsroom/winxp/windowsprinciples.mspx. \n“You, Mr. Bill Gates, are a friend of China, and I’m a \nfriend of Microsoft.” —Chinese President Hu \n“Technology has expanded opportunities of millions of people around the world and—whether expanding access to information, education, or healthcare, or increasing the collective power of individuals—it has an important role to play in creating a thriving, competitive Africa. The efforts I’ve seen from Bill Gates and companies like Microsoft, in partnership with governments, NGOs, and other private-sector organizations, are helping Africa in its push to achieve the United Nations Millennium Development Goals.” \n—Bill Clinton, Former U.S. President \n“The Commonwealth is very pleased with Microsoft’s progress in creating an open document format. If Microsoft follows through as planned, we are optimistic that Office Open XML will meet our new standards for acceptable open formats.” \n— Tom Trimarco, Massachusetts Administration and Finance Secretary \n“In Bavaria we have been successful in the past years with our focus on innovation —and we also owe this to the support of companies such as Microsoft.” _0\n—Edmund Stoiber, Bavarian State Prime Minister ", "Executive Welcome .................................................. 2 Global Citizenship at Microsoft ................................ 3 Security and Internet Safety ...................................... 9 Knowledge Economy............................................... 19 Responsible Business Practices ................................ 41 Our Company......................................................... 54 Looking Ahead ....................................................... 56 Awards .................................................................... 57 \n“We know that the most significant problems \nfacing our planet cannot be solved without the \nclose cooperation of the private sector. Microsoft \nis not only a leader in responsible business \npractices, but also works with us to ensure that \nother businesses will rise to a similar standard.” \n— RICH LEIMSIDER, THE ASPEN INSTITUTE ", "connected, but they are connected in a way that may not seem obvious when we talk about protecting our children online,” said Charles Ray, former \nU.S. Ambassador to Cambodia. “The truth is, many Cambodian children have never used a computer and may never, in their lives, use the Internet…but Cambodian children are abused daily by the pedophiles that use the Internet and computers to plan, coordinate, and facilitate abuse of children in Cambodia.” \nEnfance en ligne —Children’s Online Safety in France \nMicrosoft organized Enfance en ligne in partnership with the National Union of Family Associations (an important NGO that represents 120 local community organizations and is the French government’s primary partner on family issues) and Defenseur des \nEnfants (the Children’s Ombudsman Office \nunder the patronage of the Prime Minister). \nEnfance en ligne was the first conference on \nchildren’s online safety ever held in France. ", "P_77\nP_78", "NGO Days in Asia \nIn 2006, Microsoft conducted NGO Days in \nAustralia, Hong Kong, Indonesia, Japan, Malaysia, the Philippines, Singapore, Sri Lanka, and Thailand to help nongovernmental organizations increase their technology capacity. An innovative hands-\non approach, NGO Days offer Microsoft staff \nthe chance to gain a deeper understanding of \nthe NGOs in their country and provide NGOs an \nopportunity to learn more about Microsoft and its community investments, technology, and people. \nMicrosoft makes frequent software donations that ", "Some of the research projects proposed by the RFP winners included delivering integrated Internet-based healthcare information and services for \nHIV/AIDS patients in Botswana; exploring whether \nWiFi-enabled phones and online chat services can \nboost cognitive development in Chilean children; \nand building a prototype of an early warning \nsystem for flood control in Honduras. Many of the \nwinning research universities are partnering with \nNGOs to develop proof-of-concept applications. ", "Recognizing the important role that the Windows operating system plays in the global knowledge economy, Microsoft has created a set of voluntary, self-regulating principles that will help guide the future development of the Windows desktop platform worldwide, beginning with Windows Vista. \nIn announcing the Windows Principles, Microsoft General Counsel Brad Smith said, “Our goal is to be principled, transparent, and accountable as we develop new versions of Windows. These voluntary principles are intended to provide \nthe industry and consumers with the benefits \nof ongoing innovation, while creating and preserving robust opportunities for competition.” \nThe Windows Principles, which consist of 12 tenets, are divided into three categories: \nChoice for Computer Manufacturers and Customers. Microsoft is committed to designing Windows, and licensing it on contractual terms, to make it easy to install non-Microsoft \nprograms and to configure Windows-based \nPCs to use non-Microsoft programs instead of, or in addition to, Windows features. ", "H5_29\nSect_74\nP_143\nH6_38\nP_144", "Best Companies to Work for in Latin America 2005 amp; 2006, Great Places \nto Work Institute Latin America \nBest Employers in Latin America, Hewitt Associates and América Economía \nRecognition Award for contributing to the \nfirst job program in the city of Guarulhos, \nBrazilian Ministry of Labor and Oxigênio \nMost Admired Companies (top 10), Carta Capital \nour company ", "H5_1\nP_1\nP_2\nP_3", "H5_4\nP_7\nSect_5", "As a global company, we recognize that every country and community where we do business has its own set of social, economic, and environmental challenges. With that in mind, we strive to nurture a spirit of innovation throughout our company that provides our employees and partners with the tools —and inspiration —to meet those challenges and turn them into opportunities. \nThe importance and integral nature of global citizenship at Microsoft were underscored by Kevin Turner, Microsoft Chief Operating \nOfficer, at an internal meeting with employees: \n“Good citizenship is just good business. It’s the right thing to do. It’s who we are as a company. It’s our commitment to communities around the world. It’s really that simple.” \nAlthough our Citizenship programs are \ndiverse and tailored to the specific needs of the \npeople and communities they serve, they are all organized around one of the three central themes of our Global Citizenship Initiative: ", "The parental controls built into Windows Vista help provide security and safety functionality to the computer on which it is installed and provides functionality for the management of \noffline activity as well —such as PC games. \nL\ntext", "Information and communications technology has spurred rapid socioeconomic development in developed countries and in urban areas in developing countries, but many rural areas6 in developing countries have been left behind. \nIn India, more than 70 percent of the population lives in rural areas with either limited access to technology, or no access at all, which, in turn, limits access to government services and participation in the knowledge economy. Project Saksham is an initiative launched by Microsoft in partnership with governments in India to help energize the nation’s rural economy by creating a sustainable IT infrastructure and an environment for economic growth. \nand grants from rural development programs \nto provide microfinancing and to encourage \nkiosk-based microenterprises throughout rural India. Over the next three years, Project Saksham will establish 50,000 such businesses in India, which will be operated by village entrepreneurs. \n6 2001 Census of India, Office of the Registrar General, http://censusindia.net (accessed August 2006). \nArgentina, Botswana, Canada, Chile, China, India, the Netherlands, Pakistan, the United States, and Uruguay. ", "In today’s heterogeneous IT marketplace, interoperability —the ability of diverse IT applications or systems to exchange and use information —is considered by customers to be an increasingly important software feature, ranking almost as high as security and reliability. Innovative interoperable solutions are valued by customers as they seek to reduce costs and complexity, and increasingly pick and choose the best products from multiple vendors to meet their IT needs. Whether it is sharing data between applications written in different programming languages, or trying to log on across multiple systems, Microsoft is committed to delivering innovative interoperable solutions that enable technologies to work together without compromising their distinctive underlying capabilities. \nL_1\ntext_4", "H2_14\nP_148", "H5_2\nP_5\nH5_3\nP_6", "H6_10\nP_46", "IDL is based on Conference XP, a special technology \ndeveloped by Microsoft Research Asia and adapted for local conditions by Mamp;S Consultants, an \nAustralian company from the Northern Territory. \nAfter its debut at the Katherine School, the IDL service was implemented at the Alice Springs \nSchool of the Air and the Northern Territory Open Education Centre. Eventually, the IDL service will be available to approximately 110 remote homesteads, 90 remote schools, four remote training centers, \nand a number of urban and regional schools. ", "on June 6, the Open Door Center graduated its first \nclass of students, who became instructors in the program to help train others in the community. \nA joint project of Microsoft Latvia and APEIRONS, a \nLatvian organization for people with disabilities, \nOpen Door is supported by a Microsoft Unlimited \nPotential grant, along with donations of Microsoft software and curriculum materials. The center has a computer classroom with workstations for IT instruction, and it also offers computer and Internet access to people in the community. ", "For Project Saksham, \nMicrosoft is partnering \nwith government \nagencies and NGOs \nand taking advantage \nof resources, funding, ", "In May 2006, Microsoft expanded its partnership with the Korean government by signing a Memorandum of Understanding with the Korea IT Industry Promotion Agency (KIPA) to implement the Software Ecosystem Project and accelerate the growth of the Korean IT industry. \nUnder the agreement, Microsoft will invest an additional $30 million in the Korean IT industry, bringing its total investment to $60 million over the next three years. The money will be used in part to build two new labs —the ISV Empowerment Lab and the Web Engineering Lab —that will help local companies strengthen their ability to compete in the global marketplace through ongoing innovation. The two new labs will join the existing Microsoft Mobile Innovation Lab in the expanded Microsoft Innovation Center. \nThe goal of the ISV Empowerment Lab is to nurture 60 Korean ISVs, helping them create new products and technologies. In addition, Microsoft will help key ISVs gain access to the global market through export opportunities. The Web Engineering Lab is designed to foster collaboration between local companies in Web services and digital \ncontent. The two labs will also support the training of 1,000 skilled software architects. \n“Together with the Korean government’s initiatives to build a stronger software industry, we expect Microsoft’s contribution and commitments will help nurture a more globally competitive software industry for Korea.” \n—HYUN JIN KO, PRESIDENT OF KIPA ", "Paternoster, Silvia Perrone, and Andrea Sossich \na mobile map to help blind people navigate. \nTeam Virtual Dreams: Roberto Sonnino and Algorithm —Poland. Piotr Marek Mikulski Eduardo Sonnino \nThe winners were announced in a gala awards ceremony in Delhi, India. First \nShort Film —Canada. Project Hoshimi (Programming \nplace winners in each invitational were: ", "• Accountability to customers, shareholders, partners, and employees for commitments, results, and quality \nL_3\ntext_5", "H5_28\nSect_71\nP_140\nH6_35\nP_141\nSect_72", "Digital Inclusion. To continue to make progress toward our goal of providing technology access and skills training to a quarter of a billion people by 2010. \nEmployee Engagement. To increase employee awareness of and involvement in each of our global citizenship efforts. \nWe have learned much over the years about our role and responsibility as a global corporate citizen, and how we can use our resources and \ninfluence to create opportunities for more people worldwide. We don’t have all of the answers. No one does. By working in close collaboration with our government, NGO, and industry partners, however, we can continue to improve \nand refine our approach to global citizenship \nand make a meaningful difference in the world. ", "Best Companies to Work for in Latin America 2005 amp; 2006, Great Places _0\nto Work Institute Latin America _0\nBest Companies in Mexico 2005 (11) amp; 2006 (13), Great Places To Work Institute Mexico and \nEthics and Values in the Industry, \nNational Confederation of Industrial Chambers (CONCAMIN) \nSocially Responsible Business Award, Mexican Center for Philanthropy (CEMEFI) ", "One Microsoft Way Redmond, WA 98052 USA \nMicrosoft Asia Pacific 1 Marina Boulevard #22 –01, Singapore 018989 \nPhone: 65.6882.8899 www.microsoft.com/asia \nMicrosoft Greater China 19/F, Millennium Tower, 38 Xiaoyun Road \nChaoyang, Beijing 100027, P.R. China \nPhone: 86.10.8453.8585 www.microsoft.com/china ", "stakeholders —employees, customers, partners, \nof this print volume, which highlights and provides an overview of some key issues, and \na more detailed online publication that we will \nand online components of the report provide key links to more detailed information on \nMicrosoft.com, Microsoft’s corporate Web site. ", "Parents can set the SafeSearch feature in Windows Live Search to Moderate \n(the default setting) to automatically filter out \nsexually explicit Web sites and images. For a higher level of protection, parents can increase the SafeSearch setting to Strict, which causes \nWindows Live Search to filter out sexually \nexplicit text as well as sexually explicit images. ", "all-in-one, always-on PC care service that \nis like a “pit crew” \nfor PCs. Windows \nLive OneCare \nperforms a wide ", "Despite a high level of literacy and education, there \nis widespread poverty in Egypt. A majority of Egypt’s 77 million people are considered “working \npoor,” with average monthly incomes of about \n$100. Few have any credit history, which puts \npurchasing a home PC beyond their means. ", "L_2\nLI_3", "Computing, we design our products with \ninteroperability in mind so our customers \ncan connect to other platforms, applications, \nand data easily,” said Bob Muglia, Senior Vice \nPresident of the Server and Tools Business at ", "Council will help us prioritize areas where we \ncan achieve greater interoperability through \nproduct design, collaborative agreements with \nother companies, standards, and effective \nlicensing of our intellectual property.” ", "LI_7", "LBody_13\nLBody_14\nLBody_15\nLBody_16\nLBody_17", "We also research and develop advanced technologies for future software products. Delivering breakthrough innovation and high-value solutions through our integrated platform is the key to meeting our customers’ ever-changing needs and ensuring our future growth. \nWe have laid a solid foundation for long-term success by making global citizenship an integral part of our business, consistently delivering innovative new products, improving our internal processes, creating opportunity for our partners, and increasing customer satisfaction. We are continuing to build on this \nL_5\ntext_6", "On July 20, 2006, Microsoft announced \nrevenue of $44.28 billion for the fiscal year \nthat ended June 30, 2006, an 11 percent increase over the previous year. Operating \nincome for the fiscal year was $16.47 billion, or 13 percent over the previous year. In fiscal \nyear 2006, Microsoft returned more than $23 billion to shareholders in the form of dividends and share repurchases and invested $6.58 billion in research and development. ", "To guide us as our citizenship work \ncontinues, we have set five goals for fiscal year 2007 and beyond: \nInnovation. To improve technology access to underserved populations by developing new products and supporting the growth of local software economies. \nResponsible Business Leadership. To further the integration of responsible business practices into the core elements of our business, including product development, product life cycle planning, environmental impacts assessments, employee accountability, and advocacy of responsible industry policies. \nSecurity and Internet Safety. To work collaboratively with partners in industry, nongovernmental organizations, and governments worldwide to make computing safer, to improve and enhance the security features of our products, and to increase consumers’ awareness of how they can protect themselves and their families online. ", "Best Corporate Citizenship Practice Award \n(finalist), 21st Century Business Review and 21st Century Business Herald \nTrustworthy Platform Award and Trustworthy Personal Security Service Provider Award, \nState Council IT Office, Ministry of \nPublic Security, and State China National Computer Emergency Response Team ", "100 Best Workplaces in Europe 2006, \nFinancial Times and Great Places \nBest Workplaces in Netherlands 2006 (2), Great Places to Work Institute the Netherlands \nNorway 100 Best Workplaces in Europe 2006, Financial Times and Great Places to Work Institute Europe \nBest Workplaces in Norway 2006 (1), ", "Environmentally Friendly Best Practice, Responsible Business Forum \nBest Employer 2005, Hewitt Associates \nPortugal 100 Best Workplaces in Europe 2006, \nFinancial Times and Great Places _0\nBest Workplaces in Portugal 2006 (2), Publico and Great Places to Work Institute Portugal ", "Distinguished Online Communications, Society for Technical Communications (STC), Puget Sound Chapter (Washington State) \nLarge Employer of the Year, Governor’s Committee on Disabilities and Employment (Washington State) \n2005 Corporation of the Year, Charlotte Post Foundation (North Carolina) \n2005 Million-Dollar Circle Award (top 5 corporate donor), United Way of the Central Carolinas (North Carolina) \nVIP Corporate Award 2005, American Heart Association (North Carolina) ", "H5_0\nP_0", "The function of the GRI performance indicators is to make it easier to compare organizational reports on the basis of economic, \nenvironmental, and social impacts. In the \nonline portion of this report, we have included references to applicable GRI indicators to assist stakeholders in their review and assessment \nof our Global Citizenship Initiative. ", "Sect_12\nP_19", "In April 2006, Microsoft took part in TechFest at the Gathering of Nations in Albuquerque, New Mexico, the largest Native American Pow Wow held in North America. Microsoft, in \npartnership with HP, helped bring \ntechnology to Native American youth \nby providing TechFest with free PCs and monitors. ", "The European Union Grants Advisor (EUGA) program is \na collaborative effort led by Microsoft to help small and \nmedium-sized enterprises (SMEs), \nas well as local and regional governments, better understand ", "LI", "LBody\nLBody_0\nLBody_1\nLBody_2", "Sect_22\nP_45", "Technology Offers New Hope to Amputees \nOn New Year’s Day 2005, Jonathan Kuniholm, \na U.S. Marine officer, was wounded in Iraq \nand lost his right arm below the elbow. ", "Australia’s School of the Air Goes High-Tech \nThe Katherine School of the Air was established \nin 1966 to educate children at isolated \nhomesteads, remote schools, and indigenous communities in the Australian outback. ", "Community Licensing. Enables no-cost access to technologies that allow others to add-on to our products or build their own unique solutions. \nThe Open Specification Promise. Developed with feedback from customers and the open \nsource community, it is a simplified method \nfor sharing technical assets while recognizing the legitimacy of IP. It further highlights Microsoft’s commitment to customers and meeting their interoperability needs. ", "Sect_68\nLI_6", "Best Companies to Work for in Latin America 2005 amp; 2006, Great Places to Work Institute Latin America _0\nBest Companies in Colombia 2005 (12), Great Places to Work Institute Colombia \nRecognition for continuous support to Computers for Education program, First Lady of Colombia Lina de Uribe and Ministry of Communications and Education \nSocial Responsibility Award in the Community Support Category (nomination), Portafolio ", "IT Ratna of the Millennium, \nin recognition of work in the field of localization \nand education, Government of Maharashtra \nWISTEX Award, in recognition of large contributions towards the government’s IT literacy program for schools, Government of Uttaranchal ", "1950 Meadowvale Boulevard Mississauga, Ontario L5N 8L9 Canada Phone: 905.568.0434 www.microsoft.com/canada \nThis report is printed on New Leaf Opaque 100, White, 80 lb. cover and 80 lb. text, which are made with \nprocess-chlorine-free 100% post-consumer waste fiber. \nWindows Server, Windows Vista, Xbox, Xbox 360, and Xbox Live are either registered trademarks or trademarks of Microsoft Corporation in the United States and/or other countries. All other trademarks are property of their respective owners. Part No. 098-106244 ", "This report focuses on Microsoft’s fiscal \nyear 2006 (which began July 1, 2005, \nand ended June 30, 2006). All data is for that period unless otherwise noted. ", "This report is organized to reflect the \nstructure of our Global Citizenship Initiative \nand related activities, because we want our ", "We ensure integrity, transparency, and social accountability in our business practices, whether complying with the laws of the countries where we do business, supporting industry standards, adhering to the highest ethical and environmental practices, or making sure our products interoperate well with those of other companies —including our competitors. \nSince issuing our first Global Citizenship Report \nin 2003, we at Microsoft have continued to strengthen our internal organizational structure. Just as important, we also are improving and extending our external programs to create a greater awareness of, and accountability for, the economic, social, and environmental issues that affect communities and individuals worldwide. ", "Canada: Providing Access and Training to Technology \nThe Community Access Program (CAP) is a Government of Canada initiative that provides Canadians with affordable public access to the Internet and the skills they need to use \nit effectively. Together with Pacific Community Networks Association, a nonprofit organization representing 22 CAP Networks in British Columbia, Microsoft will be supporting the creation of an online community focused on teaching the art and science of game development. ", "Microsoft Innovation Centers (MICs), found throughout \nBrazil, are designed to foster \nstrong, self-sustaining local software economies by providing customers and partners with a comprehensive set of programs ", "Microsoft recognizes its responsibility as an industry leader to help combat global cybercrime. We believe that working to make the Internet safer for today’s users and future generations is, quite simply, the right thing to do. We also realize that no one group can tackle the challenge of Internet safety. Accordingly, we work collaboratively with industry partners, \ngovernment agencies, law enforcement officials, NGOs, and other influential people and \norganizations to improve safety, privacy, and security through enforcement efforts, technology tools, and education and awareness campaigns. ", "about Microsoft Xbox 360 Family Settings is \navailable at www.microsoft.com/athome/security/ \nchildren/xbox_360_family_settings.mspx. ", "a particular sector, such as agriculture in Indonesia. \nFeedback from NGOs attending these events has been so positive that Microsoft intends to expand \nthe program. We are also pursuing follow-up ", "To help fuel innovation and the development of strong, self-sustaining local software industries in communities worldwide, Microsoft is partnering with local governments, academic institutions, industry organizations, and software and hardware vendors to expand its network of Microsoft Innovation Centers (MICs). Today, these centers serve 100 communities worldwide. By the end of 2006, there will be MICs in 125 communities in 50 nations. \nMicrosoft and its partners in each community work together to operate the MICs, which are open to students, professional software developers, IT professionals, entrepreneurs, and academic researchers. Each MIC tailors its programs to local needs, but they all provide similar content and services designed to accelerate technology advances and stimulate local software economies through skills and professional training, industry partnerships, and innovation. \nIn Brazil, more than 14,000 students, university professors, and local software entrepreneurs have used the country’s 20 Microsoft Innovation Centers to collaborate on new technologies, test software prototypes, participate in seminars on emerging technologies, receive advanced training, and prepare for jobs in Brazil’s fast-growing high-tech sector. Since the Brazilian centers opened in 2002, more than 200 software projects and solutions have been developed around the XML open standard and other innovative technologies, in collaboration with 72 universities and numerous local governments and businesses. ", "P_104", "In 2000, Microsoft helped to establish NPower, a network \nof independent, \nlocal nonprofit ", "university students, who combined GPS \nTeam Even .ctor: Giorgio Sardo, Massimo \ntechnology with vibrating wrist bands to create ", "LBody_6\nLBody_7\nLBody_8", "P_131", "employees to take three to five days of paid volunteer leave each fiscal year. \nIn the United States, each employee’s \ncharitable matching benefit —which matches ", "At Microsoft, our mission is to enable people and businesses throughout the world to realize \ntheir full potential. Everything we do reflects our \nmission and the values that make it possible. ", "LI_4\nLI_5", "LI_9", "LBody_20\nLBody_21\nLBody_22", "about Microsoft’s active involvement in legal \nissues, whether specific to Microsoft or more \ngenerally applicable to the software industry, is available at www.microsoft.com/about/legal/. ", "In fiscal year 2006, Microsoft continued \nworking to resolve existing legal disputes in an effort to clear the way for new opportunities and more innovative products for our customers worldwide. At the same time, a \nfew ongoing issues evolved significantly. ", "Corporate Voices of Courage, Women’s Commission for Refugee Women and Children \nWorld’s Most Respected Company (ranking = 1), Financial Times and PricewaterhouseCoopers \nGlobal Most Admired Companies 2006 All-Stars (6), Fortune ", "Best Companies to Work for in Latin America 2005 amp; 2006, Great Places to Work Institute Latin America \nBest Companies in Argentina 2005 (6), Great Places to Work Institute Argentina \nSadosky Award, Top foreign business supporting the local industry in the investment in Argentina, Chamber of Software Businesses and Information ", "H5_47\nP_166", "H5_56\nP_185", "Odakyu Southern Tower, 2-2-1 Yoyogi \nShibuya-ku, Tokyo 151-8583, Japan \nPhone: 81.3.4332.5300 www.microsoft.com/japan ", "Coeur Défense, Tour B –37e étage \n100, Esplanade du Général de Gaulle \n92932 Paris La Défense Cédex France Phone: 33.1.70.99.10.00 www.microsoft.com/emea ", "In the 2006 Microsoft Global Citizenship Report, we discuss our key citizenship initiatives and activities worldwide, highlight some of our \nmore significant accomplishments in fiscal year 2006, and share our goals for fiscal year 2007. ", "shareholders, and others—to be able to \ncompare our program goals and objectives with our results. The report is a combination ", "All money figures in this report are in \nU.S. dollars unless otherwise noted. ", "The terms “Global Citizenship” and “Corporate Citizenship,” which are used throughout this report, are interchangeable with \nsimilar terms such as “Corporate Social Responsibility” and “Corporate Sustainability.” ", "H6\nP_8", "We are constantly expanding our understanding of what we must do to be a responsible leader and a good corporate citizen, and we are always seeking new ways to put partnerships and innovation to work to really make a difference. Our global citizenship efforts represent our mission and values in action, and they underscore how creativity and a spirit of innovation can make a difference, not only in the products we create, but in the way we give back to communities worldwide. \nBy working together with our many partners to solve challenging problems, we are optimistic that Microsoft can continue to help make positive and lasting contributions to society. ", "H6_0\nP_18", "about the Microsoft Global Citizenship Initiative and our progress on each of its three central themes is available at www.microsoft.com/citizenship. \nWe appreciate frank and honest feedback, both positive and negative, because it helps us to improve. We invite you to offer your observations and suggestions about this report as well as Microsoft’s global citizenship activities. Please send your comments to citizenship@microsoft.com. ", "H6_7\nP_42", "As an innovative technology company whose products are helping to transform many aspects of personal and professional life for millions of people worldwide, Microsoft has a responsibility to work with lawmakers and law enforcement agencies to develop laws and policies that help ensure online safety, security, and privacy. \nBecause cybercrime crosses jurisdictional and international boundaries, Microsoft is working with governments around the world to enact legislation that prohibits the distribution of deceptive e-mail or spyware, protects individual privacy, empowers consumers, and preserves the health and vitality of legitimate e-commerce. And we’re making progress. The worldwide proliferation of spam, phishing, malicious code, and spyware attacks has spurred numerous legislative bodies to adopt laws addressing these cybercrimes. ", "about Microsoft’s views on privacy legislation, see \nwww.microsoft.com/presspass/features/2005/nov 05/11-03Privacy.mspx and www.microsoft.com/press pass/press/2005/nov05/11-03DataPrivacyPR.mspx. ", "P_63", "Partners in Learning and Unlimited Potential are key components of Microsoft’s worldwide \nemployability and workforce development ", "scattered across 800,000 sq. km. In March 2006, Microsoft and the Northern Territory Government \nunveiled the Interactive Distance Learning (IDL) service to improve distance education in Australia. ", "and use a Web-based white board to collaborate \non lessons. Students receive learning materials ", "P_69\nP_70", "Opening Doors in Latvia \nOn February 6, 2006, the Open Door center was ", "Sect_38\nLI_1", "P_80\nP_81", "RESEARCH CENTRE (IDRC) \nPartnership for Technology Access ", "Similar PTA programs have been established in \nthe Philippines and Nigeria. Konek ka diyan! is a PC-purchase program that gives 9 million overseas ", "who use their paychecks as collateral. Over the next two years, the program will expand to include \nstudents, microenterprise owners, and pensioners. ", "program, operating \nin scores of countries, ", "Cup, an annual technology competition for university students, encourages young people to develop software solutions that address real-world problems. The event rewards the students’ innovative work with cash prizes and international recognition. When Imagine Cup began in 2003, 1,000 students from 25 countries competed for $50,000 in prizes in one invitational division: Software Design. Imagine Cup 2006 drew 65,000 students from more than 100 countries, competing for more than $125,000 in prize money in six invitationals. The competition challenged students to “imagine a world where technology enables us to live healthier lives.” \nOne of the many innovative entries in the 2006 competition was from a team of Brazilian ", "LI_2", "“out of the box,” without the need for expensive consulting services \nLBody_5", "Officers, Chief Technology Officers, and \nSystem Architects from leading corporations and governments worldwide. Members include the European Commission, Société Générale, American Express, Siemens AG, Toyota Motor Corporation, LexisNexis, Kohl’s Department Stores, Denmark’s Ministry of Finance, UNICEF, Brazil’s São Paulo State Court of Justice (Tribunal de Justiça do Estado de São Paulo–Brazil), Bell Canada, The Boeing Company, and NATO’s Communications and Information Systems Services Agency (NCSA). ", "about the Microsoft Environmental Principles, \nsee www.microsoft.com/citizenship/ ", "official responses to domestic events have been \naffected by the availability of information and opinions communicated over the Internet. ", "LBody_10\nLBody_11", "LI_8", "LBody_18\nLBody_19", "LI_10", "LBody_23\nLBody_24", "of Microsoft’s legal issues in fiscal year \n2006 is available in the Notes section of the 2006 Microsoft Annual Report at www.microsoft.com/msft/ar.mspx. ", "At Microsoft, we believe strong corporate governance is a fundamental component of our business success —and we operate the company on that basis. \nOur Board of Directors establishes the standards and policies for corporate governance, ethics, and compliance throughout Microsoft. The Board’s role is to oversee the work of management in conducting the company’s business and to serve the long-term interests of shareholders. The Board believes that taking account of the interests of other stakeholders such as employees, customers, partners, suppliers, and the many communities around the world where we do business is an important component of achieving shareholders’ long-term interests. ", "Longevity Award, Prime Minister’s Awards for Excellence in Community Business Partnerships \n2005 CSC Enabling Technology Award, Australian Computer Society (ACS) and Australian Information Industry Association (AIIA NT) ", "Best Workplaces in Austria 2006 (19), Die Presse and Great Places to Work Institute Austria \nTrigos Award 2006, Association of Industrialists and the Austrian Chamber of Commerce ", "Most Respected Corporations (14), Globe amp; Mail and KPMG report on business \nRecognition in Heroes amp; Builders section of Canada Day special feature, Maclean’s ", "Good Corporate Citizenship 2005, Camara Chileno Americana de Comercio \nOutstanding Support to the Software Industry Award, Grupo de Empresas Chilenas de Software (GECHS) ", "Contribution to the Community Award for Corporate Social Responsibility 2005, Costa Rican –American Chamber of Commerce (AMCHAM) \nMost Admired Multinational Company Working in the Region (top 10), Estrategia amp; Negocios Survey ", "100 Best Workplaces in Europe 2006, Financial Times and the Great Places to Work Institute Europe \nBest Workplaces in Finland 2006 (1), Kauppalehti and Great Places to Work Institute Finland ", "100 Best Workplaces in Europe 2006, Financial Times and Great Places to Work Institute Europe \nBest Workplaces in France 2006 (3), Great Places to Work Institute France ", "100 Best Workplaces in Europe 2006, Financial Times and Great Places to Work Institute Europe _0\nBest Workplaces in Italy 2006 (1), Great Places to Work Institute Italy ", "MIC Minister’s Award 2006, Ministry of Internal Affairs and Communications \nMost-Respected Brand (1), Nikkei Brand Perception Survey ", "H5_48\nP_167", "H5_49\nP_169", "Best Companies in Peru 2005 (9), Great Places to Work Institute Peru \nRecognition for Ethics and Values in the IT Industry, Bitacora ", "Anvil Award of Excellence, Public Relations Society of the Philippines (PRSP) \nGold Quill Award of Merit, International Association of Business Communicators (IABC) ", "H5_52\nP_173", "Top 50 Employers (1), \nCAREERS amp; the disABLED ", "Top Employer of the Year (5), \nThe Black Collegian Magazine ", "H5_55\nP_184", "Phone: 425.882.8080 \nwww.microsoft.com ", "Microsoft has been recognized for \nits citizenship activities around the world. This recognition includes awards for business ethics, labor practices, diversity, accessibility, innovation, corporate citizenship, and Internet safety. A partial list includes: ", "about this report ", "H5", "SCOPE ", "REPORTING PERIOD ", "REPORT STRUCTURE ", "update annually. In addition, both the print ", "CURRENCY ", "TERMINOLOGY ", "GLOBAL REPORTING INITIATIVE (GRI) ", "More information ", "about the GRI performance indicators is available at www.globalreporting.org. ", "executive welcome ", "Bill Gates Steven A. Ballmer ", "Chairman Chief Executive Officer ", "global citizenship at microsoft ", "global citizenship at microsoft ", "THE GLOBAL CITIZENSHIP INITIATIVE ", "Improving Security and Internet Safety ", "We address the societal challenges of information and communications technology —such as security, privacy, and children’s safety on the Internet —through innovative technology and partnerships with industry, governments, and law enforcement agencies. We also work with our partners to provide consumer education and expert guidance about online safety to help people protect their PCs, themselves, and their families. ", "Advancing the Knowledge Economy ", "We advance the knowledge economy by partnering with governments and communities around the world on digital inclusion as well as on innovation that brings valuable technology and skills to more people and stimulates the growth of local economies. ", "Demonstrating Responsible Business Practices ", "More information ", "An Invitation to Our Readers ", "a global citizen — examples of programs around the world ", "Philadelphia: Building the School of the Future ", "Microsoft and the School District of Philadelphia joined forces to create a 750-student high school — opened in September 2006 — that embodies innovation and technology. The goal of the partnership is to create a technology-based educational model that can be replicated in communities around the globe. Learn more about the school at www.microsoft.com/ education/schooloffuture.mspx. ", "New Mexico: Reaching Out to the Community ", "Mexico: Supporting NGOs ", "In collaboration with three Peruvian universities, Microsoft developed the Quechua Language Pack to make Microsoft® Windows® and ", "Italy: University Tours ", "The Your Chance for Employment ", "Migrant workers in China face many challenges and often lack the opportunity to acquire the ", "security road shows on the information highway ", "security and internet safety ", "PARTNERSHIPS WITH INDUSTRY, LAW ENFORCEMENT, AND NGOS ", "Partnerships to Enhance Children’s Online Safety ", "Cambodia—Protecting ChildrenfromPredators ", "had 9,000 visitors the first month. ", "TECHNOLOGY INNOVATION ", "Empowering Parents with Parental Controls ", "DIVISION AT MICROSOFT ", "Limiting when and for how long their children use the computer. ", "Controlling which Web sites their children can visit and limiting the programs their children can run. ", "Restricting access to computer games (including online games with Xbox Live®) based on title, content, or independent ratings. ", "Providing detailed reports about their children’s computer usage. ", "Windows Vista’s new parental controls can help parents feel comfortable that their children are using the Internet safely by: ", "Additional information ", "about Windows Live Family Safety Settings is available at www.microsoft.com/presspass/ features/2006/mar06/03-13FamilySafety.mspx. ", "Xbox 360 and Xbox Live ", "Individual players can use ", "H6_9", "Additional information ", "Security by Design ", "Security and Internet safety are top innovation priorities for Microsoft. We are committed to delivering software, services, and best practices that help protect customers’ data, systems, and networks. We are investing in technology fundamentals that make our products more secure, and innovations that provide layered defenses against cybercrime and many other threats to security, privacy, and online safety. ", "SUPPORTING LEGISLATION ", "H6_11", "To learn more ", "Privacy Legislation Worldwide ", "microsoft and the u.n. partner on children’s online safety ", "P_55", "In June 2005, Microsoft took part in the United Nations Middle East and North Africa (MENA) Regional Consultation on Violence Against Children. The consultation, held in Cairo, brought together more than 600 government representatives, NGOs, activists, media professionals, and young global study on violence against children commissioned by the U.N. Secretary General. ", "knowledge economy ", "knowledge economy ", "DIGITAL INCLUSION ", "Employability and Workforce Development ", "2 Ibid. ", "Unlimited Potential and Partners in Learning ", "Ireland —Helping the Long-Term Unemployed ", "China —Extending Economic Benefits ", "to Migrant Workers ", "communities, Microsoft is localizing the UP training curricula for the Arabic and Portuguese languages as well as English and French. ", "One of the greatest economic migrations in history is happening in China. Although 60 percent of the Chinese population lives in rural agricultural areas, ", "India —Making Technology Part of Learning ", "Central America — Certification ", "P_74", "telecentre.org ", "ACCESSIBILITY ", "Innovative Accessibility in Windows Vista ", "ECDL Barrier-free Access Project ", "participants in more than 90 countries. Because of a lack of dedicated resources, however, people ", "LI_0", "LBody_3", "Employer access to a larger pool of skilled workers. ", "LBody_4", "Local economic benefits derived ", "dependency on state benefits. ", "from greater productivity. ", "others in 29 centers ", "Job Training in Kazakhstan ", "LOCAL SOFTWARE ECONOMY ", "India —Quality Assurance Initiative ", "Potential program. In Asia, Microsoft employees ", "build capacity and improve performance. ", "Germany — Microsoft Founder Initiative ", "Brazil —Microsoft Innovation Centers ", "Saksham —Rural Computing in India ", "Korea — Software Ecosystem Project ", "HELPING NGOS BUILD CAPACITY ", "H6_27", "More information ", "on MAR programs around the world is ", "imagine cup: inspiring students to dream ", "Software Design —Italy. IT —Austria. Andreas Tomek ", "H5_18", "Interface Design —Brazil. ", "Team Forest: Sam Chow, Nick Haffie-Emslie, Battle) —France. Team Atomnium: ", "Ryan Marr, and Meg Majewski Manon Gaucher and Flavien Charlon ", "innovation days in asia and europe ", "disaster relief: rapid response and long-term recovery ", "responsible business practices ", "responsible business practices ", "ENABLING IP OPPORTUNITY AND INNOVATION ", "In 2006, Microsoft worked with Creative ", "To learn more ", "Commons, a nonprofit organization that ", "about Microsoft’s technology access ", "offers a flexible range of copyright licenses ", "programs, see www.microsoft.com/ ", "for creative works, to develop and release ", "about/legal/intellectualproperty/. ", "a free copyright licensing tool. The new ", "downloadable tool makes it easy for people ", "To learn more ", "who use Microsoft Office applications to embed ", "about the new Creative Commons copyright licensing ", "Creative Commons licensing information ", "tool for Microsoft Office, or for a free download, see ", "in their work, and thus specify how it can ", "www.microsoft.com/downloads/details.aspx? ", "be shared or reused. By working with the ", "FamilyId=113B53DD-1CC0-4FBE-9E1D-B91D07C7 ", "community and Creative Commons, Microsoft ", "6504amp;displaylang=en. ", "enabled a simple method for creators and users ", "of IP to share and build upon ideas, while ", "recognizing and respecting the legitimacy of IP. ", "Microsoft takes a similar approach to ", "patent licensing by respecting the rights ", "of other IP holders and licensing its ", "products’ innovative technologies as needed. ", "Microsoft also makes a wide range of its ", "technology available to customers and the ", "industry, including competitors, through ", "numerous IP licensing programs. ", "INTEROPERABILITY —CUSTOMERFOCUSED AND BY DESIGN ", "Designing our software to be interoperable ", "Working with the community, including partners and competitors ", "Providing access to technology ", "Implementing and participating in industry standards ", "Microsoft takes a very customer-focused approach to providing translation tools and interoperability, and is committed to meeting customer and market needs. Because the best way to meet customer interoperability needs will depend on many factors and circumstances, Microsoft does this in a range of ways, including: ", "Better Understanding Customer Needs ", "Commercial Licenses ", "H6_29", "For more information ", "ENVIRONMENTAL SUSTAINABILITY ", "H6_30", "To learn more ", "businesspractices/environmentalprinciples.mspx. ", "AND SOLAR ADVOCATE ", "human rights and the internet ", "H6_32", "For additional information ", "changing the world: microsoft volunteer policy ", "windows principles —a principled approach to product development ", "Smith said that the Windows Principles will make Microsoft’s approach to Windows development clear to customers, partners, and governments around the world. The Windows Principles exceed the provisions of the U.S. Antitrust Ruling and will continue to apply after major parts of the ruling expire in November 2007. ", "Opportunity for Developers. Microsoft is ", "H6_33", "A complete list ", "our company ", "H5_25", "OUR MISSION ", "H5_26", "OUR VALUES ", "LBody_9", "Integrity and honesty ", "Openness and respectfulness ", "Taking on big challenges and ", "LBody_12", "Passion for customers, for our partners, and for technology ", "As a company, and as individuals, we value: ", "BUSINESS OPERATIONS ", "Information worker productivity applications ", "Business solutions ", "Software development tools ", "Consulting and product support services ", "Training and certification for system ", "Xbox and Xbox 360 video game consoles and games, PC games, and peripherals ", "Online communication and information services through our MSN portals and channels around the world ", "integrators and developers ", "North America • Japan ", "Latin America • Asia Pacific ", "Europe, the Middle • Greater China East and Africa ", "which we group into six corporate regions: ", "Operating systems for servers, personal computers (PCs), and intelligent devices ", "Server applications for distributed ", "Microsoft generates revenue by developing, manufacturing, licensing, and supporting a wide range of software products and services, including: ", "FINANCIAL REPORT ", "H6_34", "For additional details ", "see the 2006 Microsoft Annual Report at www.microsoft.com/msft/ar.mspx. ", "Revenue and Operating Income ", "as reported in the 2005 annual report ", "H6_36", "$45,000 ", "LEGAL DISPUTES ", "H6_37", "Additional information ", "A more detailed explanation ", "CORPORATE GOVERNANCE ", "H6_39", "For a list of Board members ", "For more than 30 years, Microsoft has been a global leader in creating innovative software that enhances nearly every aspect of our personal and professional lives. And now we’re working on the next wave of breakthrough technology solutions. ", "looking ahead ", "awards ", "INTERNATIONAL RECOGNITION ", "H5_32", "Argentina ", "H5_33", "Australia ", "H5_34", "Austria ", "H5_35", "Brazil ", "H5_36", "Canada ", "H5_37", "Chile ", "H5_38", "China ", "H5_39", "Colombia ", "H5_40", "Costa Rica ", "H5_41", "Finland ", "H5_42", "France ", "H5_43", "Guatemala ", "Award for Corporate Social Responsibility in the education category, Guatemalan-American Chamber of Commerce ", "India ", "Ireland ", "O2 Ability Award ", "Italy ", "Japan ", "Mexico ", "Grupo Editorial Expansión ", "The Netherlands ", "to Work Institute Europe ", "H5_50", "Peru ", "H5_51", "Philippines ", "Poland ", "to Work Institute Europe ", "H5_53", "Singapore ", "Work-Life Excellence Award, Ministry of Manpower ", "Spain ", "100 Best Companies to Work For 2006 (42), Fortune ", "Circle of Humanitarian Award, American Red Cross ", "Universum Communications ", "Universum Communications ", "Venezuela ", "UNICEF Counts on You Award for businesses that support UNICEF projects through actions and contributions, UNICEF ", "Microsoft Corporation ", "H5_57", "Microsoft Japan ", "Microsoft Europe, Middle East amp; Africa ", "Microsoft Latin America ", "6750 North Andrews Avenue, Suite 400 Fort Lauderdale, FL 33309 USA Phone: 954.489.4800 www.microsoft.com/latam ", "H5_60", "Microsoft Canada " ]

[ "H1_3\nP_7\nSect_6", "Since Microsoft’s early days, innovation has been at the center of the company’s business and software development strategy. It has led to the delivery of breakthrough products and services and creative responses to customers’ evolving needs. In recent years, Microsoft has also invested significantly in production innovations and services to make its technologies safer, more secure and interoperable with other companies’ products. Underpinning these efforts is our commitment to transparency and integrity in our business practices, including the way we work with customers, partners, governments, vendors and communities. \nAdvancing Research, Interoperability and Security \nWith an Ramp;D investment of more than US$6 billion annually, Microsoft is one of the few companies that continue to focus on the kind of basic research that drives long-term advances, while also providing a continuous stream of innovative new products and services for customers today. \nOur commitment to innovation also includes protecting the value of intellectual property. Microsoft believes that respect for intellectual property rights is crucial to enabling innovators to bring their ideas to market and to developing a thriving IT ecosystem. To this end, we have worked with Creative Commons, a nonprofit organization, to develop and release a free copyright licensing tool that enables people to embed licensing information in their work and to specify how the work can be reused or shared. \nWe are also committed to promoting greater interoperability among technology products and services. This is particularly important to business customers who need different kinds of computer systems to work well together. Microsoft is working to meet this need by designing products that are interoperable out of the box, collaborating with other companies on their product designs, making a diverse portfolio of our intellectual property available for licensing, and helping to establish standards that simplify the process of designing interoperable software. \nAs technology and the Web have become increasingly important in people’s lives, the issues of security, privacy and Internet safety have also become more significant. \nMicrosoft is addressing these challenges on a variety of fronts. We are continually developing new products and services that make the computing experience safer and more secure, particularly for young people. We work \nclosely with law enforcement to fight cyber-crime, identity \ntheft and online predators. And we help safeguard users’ privacy with protections built into our software, industry-leading policies that govern the collection and use of per\nsonally identifiable information, and a range of educational \nprograms for customers. \nAccountability and Sustainable Business Practices \nUnderlying Microsoft’s product and citizenship investments is a strong commitment to transparency and accountabil\nity in our business practices. The Microsoft Standards of \nBusiness Conduct guide the company’s decision making \nand business activities. Our Office of Legal Compliance is \nresponsible for establishing, implementing and maintaining the company’s compliance and governance programs, and all employees receive training in the standards. \nOur corporate policies also reflect a strong commitment to environmental stewardship. Microsoft has significantly reduced the use of plastic in product packaging in favor of ", "P_0\nH3", "Adults with disabilities in the United States are learning computer skills that will enable them to work and participate more fully in their communities… \nSoftware developers in China are creating breakthrough Internet applications in a free community-based technology lab… \nWhen people are equipped with the right tools to stimulate their imagination and tap their intellect, there is almost no limit to what they can achieve. Over the last 30 years, software has proven to be a powerful catalyst for helping people do amazing things and for enabling educational, social and economic advances in communities around the world. \nAlthough technology is not a cure-all, when integrated with broader efforts to promote socioeconomic development, it can empower individuals, foster local innovation and enable economic growth. \nAs a global leader in technology, Microsoft recognizes that it has a unique opportunity and responsibility to apply its expertise in software to helping people, particularly in underserved communities. \nOur citizenship commitments are focused in several key areas: transforming education, enabling jobs and opportunities, encouraging local innovation and industry collaboration, helping to create a safe and secure computing ecosystem, and maintaining high standards of accountability in our business practices. \nWe believe that we can make the greatest contribution when our citizenship efforts are closely aligned with our business strategy and when we work in partnership with governments, development organizations, nonprofits and \nother industry leaders. In 2007, Microsoft launched Unlimited Potential, which brings together the company’s corporate citizenship \nefforts and many of its business investments to significantly \nbroaden the reach of technology in underserved commu\nnities. Unlimited Potential aims to deliver the benefits of \nrelevant, accessible and affordable software to the 5 billion people who today have no access to technology or the opportunities it affords, with a goal of reaching the next 1 billion people by 2015. \nDelivering innovation in Microsoft products, services and corporate practices is also central to our citizenship efforts. This includes advanced research; support for intellectual property protections to stimulate innovation; efforts to strengthen computer security, privacy and Internet safety; transparency and integrity in our business practices; environmental stewardship; and humanitarian assistance. \nAll of these efforts are rooted in Microsoft’s mission—to enable people and businesses throughout the world to realize their full potential. These priorities also reflect our belief that social improvement and a strong business community go hand in hand. \nAdvances in digital literacy, innovation and a trusted computing ecosystem help spawn new markets and increase the ability of individuals and nations to participate and compete globally. This creates a virtuous cycle of socioeconomic opportunity that is good for people, good for local communities and good for Microsoft. ", "H2_0\nH3_0\nP_8\nSect_7", "P_9\nSect_8\nP_11", "Microsoft-supported Community Technology Centers in 102 countries provide IT education and skills training for the people who need it most \nstudents and instructor certification courses. They also help \ncreate valuable partnership and development opportunities for emerging businesses. \nMicrosoft’s Local Language Program helps nurture productivity and innovation in local communities by providing access to Microsoft products in more than 100 languages. Microsoft works with governments, language authorities and universities to ensure that translations honor local linguistic and cultural distinctions. Resources include Language Interface Packs that translate the user interface for commonly used software as well as support for local development of solutions such as spelling checkers and translation dictionaries. \nTo stimulate creative thinking among the next generation of innovators, Microsoft sponsors Imagine Cup, an annual global competition for high school and university students. Imagine Cup challenges entrants to apply their imagination and passion to creating technology innovations that can improve the world. Winning entries have included a personal navigation system to help visually impaired people get around in unfamiliar environments. \nEnabling Jobs and Opportunities \nA strong technology infrastructure can help communities create new jobs and attract investments that bolster economic growth and global competitiveness. But its prerequisite is a skilled workforce. \nMicrosoft works with a range of government and nonprofit partners to provide skills training, expand entrepreneurship and assist employers in finding qualified job candidates. For example, the Partnerships for Technology Access program helps individuals and small businesses purchase PCs and receive skills training through flexible financing plans. \nThrough the Students to Business (S2B) program, Microsoft helps companies find and hire talented students for their first job or internship in the technology profession by matching qualified candidates with open positions. And we support a network of more than 29,000 Community Technology Centers (CTCs) in 102 countries that provide IT education and skills training to hundreds of thousands of people each year. This commitment includes cash grants, donated software, and a comprehensive digital literacy curriculum and certification programs in 21 languages. ", "This brochure was printed with soy-based inks on 100% recycled paper that was manufactured entirely with Green-e® certi\nfied wind energy and processed without \nthe use of chlorine or chlorine derivatives. \n© 2007 Microsoft Corporation. All rights \nreserved. This document is for informational purposes only. MICROSOFT MAKES NO WARRANTIES, EXPRESS OR IMPLIED, IN \nTHIS SUMMARY. Microsoft is a registered \ntrademark of Microsoft Corporation in the United States and other countries. The names of actual companies and products mentioned herein may be the trademarks of their respective owners. ", "Unlimited Potential weaves together Microsoft’s technology innovations, business strategies and citizenship efforts with a global network of partnerships to help address specific needs in local communities. This work spans three interrelated areas: transforming education, fostering local innovation, and enabling jobs and opportunities. \nTransforming Education \nA good education is the cornerstone of economic opportunity. Yet in many countries, the educational infrastructure and traditional teaching methods are not providing young people with the skills they need for today’s workplace. To address these challenges, Microsoft is working with governments, educators and development organizations to improve the quality of education. This work involves providing teachers and education leaders with new skills and resources, enabling student-centered learning, and creating relevant and effective software tools. \nAt the center of these efforts is Partners in Learning (PiL), a five-year, US$250 million initiative that offers curricula and training programs, software and grants in 101 countries. Since 2003, PiL programs have provided training to more than 3.5 million teachers and have reached more than 80 million students. \nA number of PiL programs offer professional development resources to help educators use technology more effectively in the classroom. A global network of Internet-based portals enables teachers to share ideas and materials more broadly. And the Microsoft Student Innovation Suite ", "recyclable cardboard and other eco-friendly, biodegradable materials. Microsoft is also a leader in employing construc\ntion methods that promote energy efficiency and the use \nof recycled products and nontoxic materials. At Microsoft’s \nSilicon Valley Campus, up to 15 percent of the energy used \nis generated by solar panels, and in Hyderabad, India, a rainwater catchment system serves the irrigation needs of the company’s 48-acre campus. Our newest and largest data server facility, located in Quincy, Washington, is powered by hydroelectricity, a renewable, clean-air resource. ", "helps broaden students’ access to technology by making affordable and reliable software available to qualifying governments that purchase PCs for students to use at school and at home. \nFostering Local Innovation \nAlthough there is strong evidence that a healthy local technology industry contributes to economic growth, many communities lack the infrastructure and resources to help new businesses get established and grow. \nThrough a global network of 130 Microsoft Innovation Centers in 60 countries, Microsoft provides students, developers and entrepreneurs with access to ICT skills training, advanced technology tools and world-class consultants. The centers offer courses on software development and business skills as well as employment programs for ", "in software and cash from Microsoft is aiding the disaster response efforts of NetHope and other organizations \nshelter and will make contact when they are able. \nTogether with NetHope, a coalition of more than 20 nongovernmental organizations dedicated to international development, and the Interagency Working Group on Emergency Capacity Building, Microsoft is spearheading other innovative uses of technology to support more efficient and rapid communications during times of crisis. \nSince 1999, Microsoft has worked closely with the Office of the United Nations High Commissioner for Refugees to provide people in dozens of countries with access to technology tools, skills training and other essential services. Microsoft attorneys have also helped dozens of refugees make a fresh start by providing pro bono legal counsel in hearings before U.S. immigration courts. ", "Microsoft and its employees regularly step up to help those \nwho have been forced to flee their homes, whether because of a natural disaster, war or societal conflict. In addition to donating more than US$11 million in cash and software to \nHurricane Katrina relief efforts in 2005, Microsoft helped the American Red Cross develop state-of-the-art technology that will standardize the exchange of vital information about people’s welfare in the aftermath of a disaster. The Safe and Well Web site, accessible via www.redcross.org, allows disaster victims to select and post standard messages for friends and family that indicate that they have found ", "Empowering Peopleand Communities Worldwide \nMicrosoft Partners in Learning initiatives since 2003 ", "H4\nP_2", "www.Microsoft.com/citizenship \nE-mail us: ", "H5_0\nP_10", "Citizenship @Microsoft ", "2007–2008 ", "Microsoft believes that it can make the greatest contribution to society when its business operations and citizenship efforts are closely aligned. ", "Unlimited Potential: AligningBusiness and Citizenship ", "Localized versions of Microsoft products are available in more than ", "100 ", "H4_0", "different languages ", "29,000 ", "Innovation and Leadership:Core to Microsoft’s Mission ", "Humanitarian Assistance ", "US$41 million ", "Our Mission ", "At Microsoft, our mission is to enable people and businesses throughout the world to realize their full potential. ", "More information about Microsoft’s citizenship programs and investments worldwide can be found at: ", "mcitizen@microsoft.com ", "Part No. 098-109014 " ]

[ "Revenue by Business Group \nIncludes Windows products for personal computers, as well as online software and services through Windows Live \nIncludes server products and solutions such as Microsoft Windows Includes Xbox video game system, with Zune® digital music and Server, Microsoft SQL Server, Microsoft® Silverlight®, and Microsoft entertainment device, Microsoft Mediaroom®, Surface computing Consulting Service platform, and Windows Automotive \nIncludes online advertising platform and online information offerings such as Bing and the MSN® portals and channels \nCustomer amp; Partner Experience \nThe success of our company hinges on our ability to listen and respond to customer feedback about our products, programs, and services, and to increase customer satisfaction with all of our offerings. We continually engage with our customers and partners through third-party surveys and feedback mechanisms within our products, as well as through community-based websites. The information we receive helps us understand how people experience Microsoft and how we can make that experience better. \nRevenue, Operating Income amp; Earnings per Share \nWe take the feedback we receive through these channels seriously. Our customer and partner experience (CPE) strategy is spon\nsored by our chief operating officer and \npresident of the Microsoft Business Division. Microsoft employees are held accountable for the ongoing success of CPE through annual objectives and performance evaluations. Compensation for key groups of top executives is influenced by the net satisfaction of Microsoft customers and partners. \nFor more information or to provide feedback to Microsoft, visit the Microsoft Customer and Partner Experience website at http://www.microsoft.com/about/cpe. \nTOTALS IN MILLIONS \n$70,000 $60,000 $50,000 \n$30,000 $20,000 \n$10,000 \nFurther details about our business in FY2010 are Learn more about Microsoft and our business model available in the Microsoft annual financial report, which on the Microsoft Investor Relations site at http://www. you can view or download at http://www.microsoft. microsoft.com/investor/default.aspx. com/investor/AnnualReports/default.aspx. \n* 2009 IDC Report: This figure includes both the Microsoft community of partners and the IT professionals in IT-using organizations whose jobs depend on Microsoft products and services. \nMicrosoft’s Citizenship Organization \nFIELD OFFICE AND OPERATIONS IN MORE THAN 100 COUNTRIES, REGIONS, AND TERRITORIES WORLDWIDE \nHUMAN RESOURCES LEGAL amp; CORPORATE AFFAIRS ENVIRONMENTAL SUSTAINABILITY FINANCE CORPORATE MARKETING GROUP GLOBAL CORPORATE PROCUREMENT ", "P_31\nP_32\nP_33", "Office for the Coordination \nof Humanitarian Affairs, and the U.S. Department of Homeland Security—to facilitate information sharing and coordination \nIn FY2011, we are working with the Inter-American Development Bank and our technology partner Infusion to develop the Haiti Integrated Government Platform, which will host information systems and recover databases that were \nlost in the earthquake. \nPartnered with the Chilean government, Entel, Olidata, and Fundaci Vida Rural to increase access to the Internet in the affected areas Donated $3.25 million in cash and in-kind contributions, more than $1 million of which was from Microsoft employees \nHelped raise public support for aid through multiple Microsoft channels, including MSN, Bing, and Xbox LIVE \nCommunicated opportunities to aid relief efforts through multiple Microsoft online properties \nMicrosoft employees in Chile volunteered, conducting food, clothing, and donation drives to help their neighbors \nIn FY2010 Microsoft also made a commitment through the Clinton Global Initiative to work with the UN Refugee Agency and other private-sector partners to bring technology to remote refugee camps. We completed development of 3 pilot centers, 1 in Rwanda and 2 in Bangladesh, and we are working on 10 new centers in Georgia. \nOutlook _3\nIn FY2011, Microsoft is continuing to work \nwith developers to find new ways to use \nmobile and cloud-based technologies to create innovative disaster response solutions that streamline operations and increase the capacity and capabilities of response organizations. We are also working to ensure that these solutions can be \ndeployed quickly and effectively, and can \nbe hosted in the cloud, as we face new humanitarian crises in the coming years. \nAlso in FY2011, we will be giving special attention to how we help businesses restart and recover after a disaster. When business\nes can resume operations more quickly, the \neffect on individual livelihoods is reduced, and communities can once again become \nself-sufficient again. In the past, Microsoft \nhas extended free support to customers and partners in affected areas. This year, however, we are working to provide increased guidance to unmanaged customers and partners to help them build resiliency into their business systems. ", "APPROXIMATELY APPROXIMATELY \n40 \nOutlook _5\nIn today’s highly competitive business environment, our success depends on our ability to anticipate technology and market trends and then respond quickly by delivering innovation that creates new opportunities for Microsoft, our customers, and the industry as a whole. Our emphasis on diversity and inclusion has enabled us to build a diverse employee base and create a work environment that fosters talent and creativity. Microsoft welcomes different experiences, perspectives, and capabilities, and we consider these differences an organizational asset and a key enabler for innovation. If we are to effectively build a diverse and inclusive workforce, we must link diversity to our business strategy and hold our leaders \naccountable for achieving specific goals. As \na result, in FY2011 Microsoft is intensifying its GDamp;I focus on increased leadership accountability and fostering inclusive behaviors in the workplace. \nEmployee Community Involvement \nApproach _2\nOne of the most valuable ways that Microsoft can contribute to our communities is by supporting our talented employees in giving their time, passion, and expertise to their neighbors. Not only does this help us make a strong social impact, but it also helps us provide employees with opportunities outside work to engage with one another and develop their team-building and leadership skills. \nMicrosoft provides employees with a variety of community involvement opportunities. A global volunteer program, localized to meet the needs of each geography and culture, encourages employees to use their skills and time to support community efforts. In addition, Microsoft manages a matching gifts program for U.S. employees’ direct cash and software donations up to $12,000 annually to thousands of eligible 501(c)(3) and educational institutions. Similar matching gift programs are administered worldwide by participating subsidiaries. \nOur employee giving and volunteer program is overseen by the Microsoft Senior Manager for Employee Engagement, who reports to the Senior Director of Global Community Affairs. \nFY2010 Employee Volunteer Program \nUS Only Data \nL_10\ntext_9", "P_44\nP_45", "TR_30\nTR_31\nTR_32", "Broadening access to technology and technology skills is imperative in strengthening economies globally, unlocking the potential of individuals and communities, \nand finding solutions to some \nof today’s most pressing societal challenges. Microsoft is working to turn our technology expertise into an engine that drives global progress. \nThe centerpiece of our mission to extend technology is Microsoft Unlimited Potential, a company-wide commitment to make technology more relevant, accessible, and affordable for all people everywhere. Through Unlimited Potential, we create new business models, partnerships, programs, and technology innovations to help create opportunities, jobs, and innovation and to help solve major societal challenges. \nOur Unlimited Potential goal is to provide an additional 1 billion people with access to \nthe benefits of technology by 2015. Our \nefforts to extend technology are all part of this commitment. \nOne of the most direct ways that we can \nextend the benefits of technology is by \ngiving of ourselves and our resources. This chart shows our giving over time, most of which goes toward using technology for education, workforce development, and capacity building. \nMicrosoft Giving GLOBAL \n*Includes Microsoft match to employee giving \nExtending Technology Goals \nThis chart presents a snapshot of our most \nsignificant goals to extend technology to \naddress societal challenges and strengthen economies; it also shows our progress \nagainst these goals last fiscal year. Further \ninformation on these and other goals and programs is available in the remainder of this section. ", "Outlook _2\nIn FY2010 Microsoft began to integrate information on cloud-based solutions into \nour nonprofit trainings. This will continue to be a significant focus for FY2011. We \nsee cloud solutions as a way to give even \nsmall nonprofits the ability to use the same \ntechnology that the world’s most sophisticated enterprises use, and we have hardly begun to scratch the surface of what this could mean. Plans to increase nonprofit access to cloud and related services in FY2011 include: \n• Delivering cloud offerings, such as Microsoft Business Productivity Online Standard Suite \nand Microsoft Dynamics CRM for Nonprofits, to enhance nonprofit operations. \n• Focusing on Bing Maps online mapping tool as a way for nonprofits to visualize and share \ninformation and better engage their communities. \n• Developing new nonprofit-targeted software \ntools and applications. \n• Researching the potential of Microsoft Silver-light, a multimedia development platform, to \nhelp nonprofits easily create interactive video \nexperiences to share with their stakeholders. \n• Exploring how new mobile technologies such as Tag (mobile barcodes that guide users to additional online information) can help \nnonprofits have increased reach among users \nof handheld smartphone devices. ", "H5_2\nP_59\nH6_2\nSect_20\nP_61\nH6_3\nSect_21\nH6_4\nSect_22\nH6_5", "Developed new power management tools that IT administrators can use to view, manage, and reduce energy consumption as part of Windows 7, Windows Server 2008 R2, and the latest R3 beta release of Microsoft® \nSystem Center Configuration Manager. \nOpened and operated new data centers that consume 50 percent less energy than those built just three years ago. In FY2011, we will continue to work to reduce the Power Use Effectiveness (PUE) of our new data center designs. Our goal by 2012 is to construct new data centers that average 1.125 in PUE (the industry average is currently 2; optimal energy use is 1). \nCreated a “power savings calculator” within the Microsoft Assessment and Planning Toolkit, a free resource that \nis available to customers. The calculator provides a report of potential savings from adopting energy-efficient \ncomputing technologies. More than 215,000 customers and partners downloaded the toolkit in FY2010. \nHelped develop the EU Code of Conduct for Data Centers, a voluntary commitment to implement energy ef\nficiency best practices within data centers. \nContinued to work with the Climate Savers Computing Initiative (CSCI) to reduce the IT industry’s carbon footprint by over 50 million metric tons a year by 2010. This past year we chaired CSCI’s Power Down for the Planet college campaign, hosted the summer board meeting, and recruited several new companies to the CSCI board. \nSince 2007, the global IT sector has reduced annual carbon emissions from computing equipment by 32 million \nto 36 million metric tons. We are on target to achieve the goal of 50 million tons by June 2011. \nUse IT to reduce energy use and address environmental problems \nLaunched Microsoft® Hohm™, a free, cloud-based application to help consumers better understand their at-home energy use and get recommendations to save energy and money. In FY2011, Ford will integrate Microsoft Hohm into its electric vehicle models, beginning with the Ford Focus Electric, to help drivers track their energy usage. \nLaunched the Microsoft Smart Energy Reference Architecture, a roadmap to help utility companies solve integration issues that are associated with smart grid development and energy ecosystem advancement. \nExpanded our partnership with the European Environment Agency (EEA) to launch Air Watch, a new application \nthat enables EU citizens to access up-to-date, easy-to-understand information on air quality. \nParticipated in the UN Climate Change Conference 2009 (COP15) in December 2009 to share best practices on how IT can address energy challenges. At COP15, in partnership with the European Environment Agency, we launched the Environmental Atlas of Europe, an online storytelling platform with videos, photos, and data illustrating the local impact of climate change in Europe. We also highlighted the Microsoft technology that powers Bend the Trend, an innovative online pledging program that enables individuals to reduce their carbon emissions. \nPartnered with the Carbon Disclosure Project (CDP), Accenture, and SAP to help the CDP enhance its reporting infrastructure to enable companies to report more detailed and standardized information about their environmental impact. ", "H5_11\nP_89\nH5_12\nP_90\nH5_13\nP_91", "H5_22\nP_109", "U.S. Trade Association amp; Business Coalition Memberships \nMicrosoft is a member of a number of trade associations and business coalitions in the United States that help us work collectively with industry peers to advance issues that affect our business and society. \nA full list of our memberships is available on the Microsoft Corporate Citizenship website at http://www. microsoft.com/advocacy \nOutlook _15\nAs part of our strong commitment to responsible and transparent business practices, Microsoft seeks to be open about our dealings with all stakeholders and about our direct and indirect engagement in the political process. We have been recognized as a leader for our political disclosure policies by the Center for Political Accountability, a \nnonprofit, nonpartisan organization based \nin Washington, D.C., that promotes corporate political transparency and accountability. We have strong internal controls to ensure that our engagement in the political process seeks to advance legitimate business goals, and to preclude the opportu\nnity for undue influence by any individual \nemployee. \nIn FY2011 Microsoft will continue to work with a range of stakeholders, including investors and advocates, to advance the principles of openness, transparency, and accountability. We welcome the opportunity to work with other corporations as they seek to advance openness, and we will continue to regularly review our own policies and our relationships with external groups to make sure that they are consistent with our values and our commitment to responsible and transparent business practices. \nL_27\ntext_25", "TR_2", "TH_4\nTD_9\nTH_5\nTD_10\nTH_6\nTD_11\nTH_7\nTD_12", "Natural disasters strike all too often, affecting our communities and our employees around the world. Information and communications technology are critical in emergency and disaster response situations, and Microsoft is committed \nto using our unique resources \nand expertise to reduce the \nconsequences of tragedies and \nto help communities become more resilient. \nWe offer a portfolio of solutions to aid disaster response and recovery efforts \nworldwide, supporting the public, nonprofit, \norganizations, governments, and other businesses—to apply technology solutions and subject-matter expertise to address key disaster response challenges. \nMicrosoft humanitarian assistance and disaster response efforts are overseen by our Senior Director of Disaster Response, who leads a core team. When a disaster occurs, the core team is supported by a broader cross-functional team at Microsoft to provide around-the-clock support to affected areas. \nCommitments amp; Progress _2\nIn the past year, natural disasters around the world have affected millions. Microsoft, our partners, and our employees provided support and assistance. At the corporate level, we coordinated responses to three major humanitarian emergencies, outlined in the table. At the local level, we were involved in many more. \nAt the end of FY2009, the Microsoft Corporate Disaster Response Team distributed a playbook to enable Microsoft subsidiaries around the world to more effectively respond to disasters in their respective regions. The playbooks were piloted in FY2010 and were used by dozens of subsidiaries to support their regions in times of need. \nL_7\ntext_6", "H1_13\nP_69\nP_70\nP_71", "P_75", "Responsible Environmental Leadership \nApproach _4\nFor Microsoft, operating responsibly with respect to the environment does not end with our products. To retain our license to operate, Microsoft ensures that our own operations fully comply with international \nenvironmental regulations and the specific environmental requirements of each country/region where we do business. But our goal is to go beyond compliance—we seek to reduce the impact of our operations and to function in a way that will be sustainable over the long term. \nCommitments amp; Progress _5\nMicrosoft Connector Service uses a series of transports which eliminate 4.2 million miles per year. _0\nReducing Carbon Emissions \nEach calendar year, Microsoft measures its global carbon footprint and reports it publicly to the Carbon Disclosure Project. For calendar year 2009, we reported emissions \nof 1,299,356 metric tons of CO2 equivalent \n(Scope 1, Scope 2, and Scope 3 employee travel). To reduce this level to meet our 2012 goal, we have identified four major areas of our business operations for particular attention: data centers, travel, buildings, and computer labs. The reductions outlined below are not enough to achieve our goal on their own, but we believe they are the areas that will make the biggest difference. \nL_14\ntext_13", "We have implemented these principles broadly in the design of Microsoft products, the technical information that we make available about them to foster interoperability, the licenses to Microsoft intellectual property that we make available, the “plugfest” that we organize to test interoperability with other vendors’ products, and the feedback that we solicit from customers, the developer community, and others. \nIn FY2010, Microsoft released Windows 7, \nthe latest version of our flagship operating \nsystem product. Windows 7 was designed and is licensed in full compliance with the consent decree and the Windows Principles. \nWe also took a big step forward in FY2010 in releasing thousands of pages of updated technical information regarding Microsoft products that is useful for interoperability. This includes a broad range of interopera\nbility information relating to Microsoft Office \n2010, including extensive documentation on \nhow Office 2010 implements the industry-\nstandard Open XML document formats. This information will help other developers build interoperable solutions to work with \nOffice 2010. \nWe also substantially strengthened our participation with standards organizations in FY2010. Microsoft personnel are now contributing ideas and technology to a range of standard organizations throughout the world. \nOutlook _13\nOver the course of the next year, Microsoft will continue to work closely with governments in the United States and Europe to ensure continued compliance with the various obligations we have assumed in resolving competition law concerns. We will continue to focus on preparing and releasing technical information about Microsoft products (especially new products as they are developed) to foster interoperability. We are continuing to strengthen our support for important industry standards in Internet Explorer, with a new release now under development. \nOperating Responsibly _0\nL_24\ntext_22", "Approach \nTechnology is a powerful engine of economic growth and competitiveness. By enabling innovation, technology can create new companies, industries, opportunities, and jobs. In \naddition to its societal benefits, \ntechnology-led innovation is a fundamental driver of Microsoft business. Therefore we look to foster innovation inside and outside our business, as well as to support technology-related jobs and opportunities, through: \n• Our business and community of partners: The daily workings of our partner-based business model create nearly 15 million family-wage information technology (IT) jobs in communities around the world. That accounts for 42 percent of the global IT workforce. We work to support this model— \nand the benefits it brings communities— because we require strong technology-\nproficiency in technology skills; supporting \nworkforce skills development is good for society and good for our business. \nThe Microsoft jobs and workforce development initiatives are managed by the Community Affairs and Citizenship teams, which report to the Corporate Vice President, Global Corporate Affairs. Innovation is a cross-company endeavor, \nwith specific programs run by individual \nbusiness groups and Microsoft Research. \nCommitments amp; Progress _0\nOur Business and Community \nL_4\ntext_3", "To view the 2009 IDC report go to http://www.microsoft.com/citizenshipreport” \nFor more information on the Microsoft partnership model, visit the Microsoft Corporate Citizenship Jobs and Opportunity site at http://www.microsoft.com/ economicgrowth \nMicrosoft Corporate Citizenship Approach \nThe Microsoft Corporate Citizenship goals and strategy are based on our company mission to enable people and businesses throughout the world to realize their full potential. Our Citizenship approach focuses on activities that create value for both our business and society. Our commitments include the way we operate our company, our efforts to create opportunities through our technology offerings, the application of our research and development investments, and the power of our partnerships. \nWe have long partnered with governments, community organizations, and other businesses around the world to help solve some of the world’s most pressing societal challenges. Our contributions include the expertise, knowledge, and involvement of \nour employees, as well as the financial and \nsoftware resources of our company. \nMicrosoft manages Citizenship activities the same way that we manage our other business priorities. Our Citizenship strategy and key performance indicators are set each year as part of our business planning across our subsidiaries, under the direction of our country-level Citizenship leaders. We \nconduct quarterly business reviews with the \nCitizenship leaders for each country, in addition to regional areas. Citizenship metrics are incorporated into an extensive mid-year and end-of-year executive review process. We have also created technology tools—including an internal data aggregator called Collage and the externally facing Microsoft Local Impact Map—to measure and report our global citizenship activities and impact. \nOur Corporate Citizenship Strategies \nCitizenship strategies at Microsoft focus on the issues that we and our stakeholders view as most relevant for our global business. We regularly engage with our stakeholders—our employees, investors, customers, partners, and communities—to identify the issues and opportunities that are important to them. We also regularly assess and prioritize issues that have the potential to affect our business and broader society. Our Citizenship and reporting strategies are also guided by internationally recognized priorities and frameworks, such as those laid out in the United Nations Global Compact, the United Nations Millennium Development Goals, the Global Reporting Initiative, the Global Network Initiative, and the Carbon Disclosure Project. \nIn FY2010, Microsoft focused on four primary interrelated and mutually reinforcing corporate citizenship strategies, which we have grouped into two main sections in this report: \nFor more information on Citizenship strategies at Microsoft, visit the Microsoft Corporate Citizenship site at http://www.microsoft.com/citizenship \nTo view the Microsoft United nations Global Compact Communication on Progress and the Microsoft commitment to the United Nations Millennium Development Goals go to http://www.microsoft.com/citizenshipreport ", "Microsoft partners generate $537 billion in rev\nenues for themselves, fueling their businesses \nand economic growth and employment in their \ncommunities. \nFor more information about the findings of the IDC \nstudy, visit the Microsoft Corporate Citizenship website at http://www.microsoft.com/economicgrowth \nMicrosoft Innovation amp; Ramp;D \nMicrosoft Unlimited Potential \nMicrosoft Unlimited Potential played an important role in FY2010 in spurring innovation and enhancing workforce development and job readiness. \nOne of the primary ways that Microsoft Unlimited Potential promotes innovation is through Microsoft Innovation Centers. These hubs around the world offer students, entrepreneurs, academic researchers, and IT professionals the resources and training that they need to learn and innovate for their communities and regions. Use of Microsoft Innovation Centers continued to grow in FY2010. \nThrough Unlimited Potential, Microsoft also put a significant focus on workforce development in FY2010. Unemployment continued to be a primary concern for many nations in FY2010 and will likely continue to be in FY2011. To address this issue, we enhanced our workforce development efforts, developing nationally based programs to retrain unemployed job seekers and help current workers sharpen their technology skills. These included Elevate America, Britain Works, On My Way in Australia, Russia Your Course, and Elevemos Mexico. \nL_5\ntext_4", "Microsoft manages a pay-for-performance approach to compensation that is designed to attract and reward the talent we have. We also provide additional recognition (for example, awards and bonus opportunities) to reward exceptional work. \nOutlook _4\nMicrosoft will continue to evaluate ways to invest in the training, development, and future of our employees. We will also look for ways to further support work/life balance, such as extending our use of technology for telecommuting and collaboration with colleagues, customers, and partners around the globe. \nDiversity amp; Inclusion \nApproach _1\nOur GDamp;I approach is overseen by the Microsoft General Manager of Global Diversity and Inclusion, who reports to our Senior Vice President for Human Resources. \nCommitments amp; Progress _3\nMicrosoft currently employs people from more than 100 different countries/regions. \nWe have written policies that cover equal \nopportunities and anti-discrimination for all employees globally, and we are a widely recognized leader in workplace diversity and inclusion. \nThe following table details some of our progress against the three elements of our GDamp;I strategy in FY2010. \nL_9\ntext_8", "Freedom of Expression Online \nApproach _6\nSocieties worldwide recognize freedom of expression and privacy as fundamental human rights. Freedom of expression fosters civic engagement, promotes accountability, enriches societies, and develops individual potential. Privacy is a foundation for trust \nand confidence, both in governments and \nin technology services. Respecting and reconciling these fundamental rights are both good citizenship and essential to fostering \ninnovation, academic inquiry, economic \ndevelopment, and personal well-being. \nIn 2008, Microsoft helped form the Global Network Initiative (GNI), an organization dedicated to advancing Internet freedom. GNI was formed in collaboration with other leaders from industry, human rights organizations, academics, and socially responsible investors and was launched to coincide with the 60th Anniversary of the Universal Declaration of Human Rights. Microsoft is committed to the GNI’s principles and guidelines for business and is working to promote these principles and create opportunities for ongoing learning. \nThe GNI informs our engagement in markets throughout the world. While we must adhere to local laws to which we are subject, legal compliance does not necessarily \nrequire absolute or reflexive deference to \nlocal authorities. If we disagree with governments, we try to find the most constructive and pragmatic approach to sustain a principled stand. Sometimes that involves public statements of our views; other times \nwe may find it more constructive to engage \ndirectly with the government. \nMicrosoft has integrated support and responsibility for human rights, free expression, and privacy into our business operations. A cross-company senior management team oversees our efforts on our freedom of expression initiatives and is responsible for implementation of the GNI principles and guidelines. \nCommitments amp; Progress _8", "We have a dedicated Corporate Citizenship team to help facilitate this integration and support the work of colleagues across the company. This corporate team within our Legal and Corporate Affairs Department coordinates, guides, and supports business units, operational groups across Microsoft, and a global Citizenship community of \nfield staff in more than 100 countries and \nregions who help implement the Microsoft \nWINDOWS amp; WINDOWS LIVE SERVER amp; TOOLS ONLINE SERVICES MICROSOFT BUSINESS ENTERTAINMENT amp; DEVICES \nCitizenship priorities within their local communities. The team also serves as a resource to business groups as they consider how Citizenship is affected in the development of new product, program, and service offerings. \nPamela Passman, Microsoft Corporate Vice President and Deputy General Counsel, Global Corporate Affairs, leads Corporate Citizenship work at Microsoft. Ultimate oversight rests within the Microsoft Board of Directors Governance and Nominating Committee. That committee’s charter includes a commitment to “Annually review the Company’s policies and programs that relate to Corporate Citizenship, including environmental sustainability, the annual public policy agenda, and political activities and expenditures.” \nOutlook \nAt Microsoft, we regularly review our Corporate Citizenship strategy, focus, and performance to make sure that we are working on issues that meet the needs of our business and that matter most to our stakeholders. In FY2011, we plan a more \nsignificant review of our efforts to define the \nnext generation of Corporate Citizenship activities at Microsoft. \nWe launched our Citizenship initiative in \n2003 and significantly expanded it in 2007 \nwith the launch of Microsoft Unlimited Potential, which focuses on increasing opportunities and helping solve societal challenges in communities around the world. With our Unlimited Potential commitments on track to be met in the next several years, the time is right to begin evaluating the next generation of our strategy, which will likely focus on expanding the impact of our products and services to address the \nworld’s most significant societal challenges, such as education inequalities and sustainable economic growth. ", "People use information technology (IT) to convey information and ideas in novel and creative ways. IT gives us new opportunities to express ourselves, to be heard, to connect with each other, and to access even obscure information easily. Cloud computing enhances these capabilities for all of us—individuals, businesses, governments, and nonprofits—creating more access and presenting a host of exciting new opportunities for users everywhere. \nwill only grow in importance. Microsoft launched the Windows Azure cloud service in November 2009, and by June 2010 there were 10,000 paying Windows Azure customers. Today there are more than 360 million active Windows Live® Hotmail® users, all of whom entrust their data to Microsoft cloud services. Microsoft is working hard to honor this trust. Our goal is to remain an industry leader in privacy and security. \nOperating in a global technology market brings many complex, and sometimes competing, responsibilities. In addressing these responsibilities, we have learned that we must engage with all our stakeholders and develop cross-sector partnerships to adapt our products, policies, and actions to help keep consumers safer and more secure online. We have also learned that we must constantly evolve as the online environment continues to grow and change. \nThese technologies yield great benefits, but they also create significant responsibilities \nfor those who design and operate them. New uses of technology put privacy, security, online safety, and freedom of expression at the forefront as today’s critical business and societal issues. \nAs more people move their data to the cloud in the coming years, these issues \nPrivacy, Data Security amp; Online Safety \nApproach _5\nPromoting a healthy online ecosystem— which includes consumers, content publishers, advertisers, network operators, and service providers—is both a business imperative and a key Microsoft Citizenship goal. In pursuing this goal, Microsoft promotes privacy, data security, and online safety in our products, services, programs, and partnerships. We support technology, design, and public policy approaches that help make computing and the Internet safer, more trustworthy, and more customer-friendly. How we handle user privacy, data security, and online safety affects all of our users and society as a whole. To ensure that we have input from various constituencies, Microsoft engages with consumers, advertisers, publishers, law enforcement agencies, and our shareholders. We constantly listen to the concerns and perspectives of each group, and we strive to balance and integrate their viewpoints in our work to create a safer online environment. \nTo address the issues of privacy, data security, and online safety, Microsoft brings together a broad network of personnel from across the company who have expertise in these areas. As part of that network, a core group of experts in our Legal and Corporate Affairs team is responsible for engaging with stakeholders and developing Microsoft policy. The Microsoft Corporate Vice President of Trustworthy Computing, who reports to the Microsoft Chief Research \nand Strategy Officer, oversees privacy, data \nsecurity, online safety, accessibility, and environmental sustainability efforts. Our Trustworthy Computing Group is a global team of more than 400 professionals. \nCommitments amp; Progress _7\nMicrosoft takes seriously our responsibility to promote healthy competition, innovation, and choice, as well as privacy and safety. The following are some recent examples of our actions. ", "Today that mission is more important than ever. We operate in an increasingly connected \nworld—one that is facing historic and persistent economic challenges as well as significant \nIn the face of these challenges, though, I am genuinely excited about the potential for information technology to create jobs, increase productivity, and launch a new era of sustainable economic growth. That vision is shared by government and civic leaders I meet, who consistently identify technology innovation as key to unlocking new opportunities and advancing important social priorities—from health care and education to science and environmental sustainability. \nThis Corporate Citizenship Report provides our assessment of how Microsoft is working to advance economic, social, and environmental progress, both where we are succeeding and where we have more work to do. This year we are publishing this report in tandem with our annual report for the first time. This reflects the interconnections between our Citizenship work and our business. We see our Citizenship strategies and business strategies as complementary, creating shared value for Microsoft shareholders, employees, stakeholders, and society. \nThe report covers Microsoft Fiscal Year 2010, which I believe was an important inflection \npoint for our Citizenship activities. In the middle of FY2010, we arrived at a resolution for a number of long-standing competition law issues with the European Commission. At about the same time, the U.S. Department of Justice (DOJ) declared in court that Microsoft’s work on documenting various Windows protocols was substantially complete. This recognition by the DOJ of the accomplishments of our protocol documentation teams is an important step in our compliance with the consent decree that terminated the competition lawsuit brought against Microsoft in the late 1990s. \nAlso in FY2010, we made it clear that Microsoft is “all in” when it comes to our commitment to cloud computing, which is Internet-based computing enabled through services such as Windows® Azure™, Microsoft® SQL Azure™, Windows®, Microsoft® Office Web Apps, \nBing™, Xbox LIVE®, and Windows Live®. This has important implications for our Citizenship work. Cloud computing offers new economic opportunities, enables small businesses and nonprofits to quickly scale innovative solutions to important challenges, and helps governments become more efficient and responsive. But with the cloud come new responsibilities. The world needs a safe and open cloud, so we are investing significant resources to ensure widespread access to the benefits of the cloud, while addressing privacy, safety, and \nIn a time of transformative change, Microsoft remains committed to our long-standing work to extend access to the benefits of technology more broadly. Launched in 2007, Microsoft Unlimited Potential continues to be our company-wide commitment to use technology to help create opportunities and solve societal challenges. We are on track to achieve our Unlimited Potential short-term goal to provide access to technology to an additional 1 billion people around the world by 2015. \nThis past fiscal year was also one of the strongest years in company history for the range and quality of product advances that Microsoft delivered. From Windows® 7, Windows Live, Microsoft® Office 2010, Windows Server®, Microsoft® SQL Server®, and Microsoft® Visual Studio® to Bing, we are redefining how people communicate, socialize, save time, reduce costs, and get things done at home and in the office. This holiday season we’ll launch \nKinect™ for Xbox 360®, Windows® phone 7, and Windows® Internet Explorer® 9. \nFinally, in addition to thinking about the effects of what we do as a business, we remain firmly committed to thinking about the effects of how we do business, with a strong commitment to responsible business practices. As you’ll read in this report, these commitments include promoting the well-being of our employees, reducing our environmental footprint, creating shared value with our business partners and suppliers, and many others. \nWe welcome your thoughts and suggestions and look forward to ongoing dialogue on how we can better harness the power of technology to continue to meet tomorrow’s challenges. ", "TH_0\nTH_1\nTD_5\nTD_6\nTH_2\nTD_7\nTH_3\nTD_8", "TD_43\nTD_44\nTD_45\nTD_46\nTD_47", "TD_61\nTD_62\nTD_63\nTD_64\nTD_65\nTD_66", "Microsoft Unlimited Potential: Nonprofit Effectiveness \nIncrease nonprofit Donated $504 million (fair market value) in software to 43,650 organizations worldwide \nLaunched Microsoft Dynamics CRM for Nonprofits, a custom tool to help nonprofits effectively man-\nage data about their donors, volunteers, and members \nHosted webinars to help nearly 600 nonprofit professionals understand cloud computing and how to use certain Microsoft products \nPartnered with Ashoka to demonstrate how mobile technology can combat tuberculosis in India \nWorked with two NetHope members to do early testing of a product that enables organizations to \nmore easily compile important data from remote field workers by using mobile phones \nWorked with public radio station KEXP to move their media infrastructure to the cloud, which will allow for richer interaction with their listeners and new and innovative ways to build and strengthen their audience \nSupported the website redesign and e-commerce platform for TechSoup.org to help scale their \nmission of helping every nonprofit access technology resources \nSoftware Donated by Region \nAPAC ", "As part of our Microsoft Unlimited Potential efforts, Microsoft is using technology to create \naccess to quality education for \neveryone, everywhere—which we see as a fundamental human right. By educating people to use, create, and value technology, we are empowering them to participate in the global economy and contribute to their local communities. We are also creating a future workforce and customer base for our industry. \n• Improve the economic and operational efficiencies of education systems. \nWe also partner with and support governments, schools, and parents. In FY2010 we increased our focus on educators. \nMicrosoft products, research, and programs all contribute to our education commitment. Cross-company efforts are guided by the Vice President of Microsoft Education and a multidisciplinary Education Advisory Council. \nCommitments amp; Progress \nIn FY2010 Microsoft achieved progress across our many programs and products designed to further our Unlimited Potential focus on education. The following is a snapshot of some of the work that took place \nlast fiscal year. \nL\ntext", "Microsoft recognizes that accountability and responsiveness to shareholders makes us a stronger company. \nOur ongoing approach to executive compensation involves building a strong link between pay and performance and making sure that we provide incentives for appropriate risk taking. To support these objectives, Microsoft: \n• Proactively adopted a “Say on Pay” policy, \nwhich was approved by shareholders. Under this policy, shareholders have the opportunity to cast an advisory vote every three years on \nthe compensation of executive officers. The first vote took place at the November 2009 \ntheir ownership of Microsoft stock, including trading in publicly traded options, puts, calls, or other derivative instruments related to Microsoft stock or debt \n• Changed our policy for reimbursement of certain relocation benefits if an executive \nleaves Microsoft within two years of commencing employment \nMicrosoft shareholders also supported a Board-sponsored proposal to amend our articles of incorporation to give our shareholders the right to call special shareholder meetings. The proposal received a vote of over 99 percent of votes cast (and 85 percent of shares entitled to vote). \nL_22\ntext_20", "TR_34", "TH_52\nTD_131\nTH_53\nTD_132\nTH_54\nTD_133\nTH_55\nTD_134\nTD_135\nTD_136\nTH_56\nTD_137", "TD_53\nTD_54\nTD_55\nTD_56\nTD_57", "TD_67\nTD_68\nTD_69\nTD_70\nTD_71", "Supporting the development of our partners is good for their business, good for Microsoft, and good for the communities and economies that we both serve. We also encourage our partners to consider their own approach to corporate citizenship. We have created an incentive for this by recognizing a Citizenship Partner of the Year as part of our annual Partner awards, honoring exceptional partners that have made a sustained commitment to their communities and that demonstrate the impact of their work. Since we introduced the award in 2007, competition for it has increased greatly, representing the seriousness of our partners’ investment in this area. \nMicrosoft 2010 Citizenship Partner of the Year: \nComputacion Olidata LTD \nAfter a devastating earthquake hit Chile \nin February 2010, Computacion Olidata \nsupported ChileConect@Chile to quickly \nrestore public access to the Internet by using semi-permanent community technology centers (CTCs). These CTCs connected \nearthquake victims with their loved ones through digitally equipped mobile containers that were placed in some of the com\nmunities hit hardest by the earthquake. \nThis initiative was carried out under the National Digital Literacy Program executed by the Rural Life Training Foundation (Fundacion Vida Rural) and was supported by the Chilean government. Olidata, along wi th Microsoft and other local partners, has supported the technology skills training of more than 600,000 individuals since 2003. ", "TR_23", "TD_92\nTD_93\nTD_94\nTD_95\nTD_96\nTD_97\nTD_98\nTD_99", "The Microsoft mission is to help people and businesses around the world realize their full potential. We work to accomplish this mission through the development of innovative products and services that help people harness the power, opportuni\nties, and benefits of technology. \nAbout Our Business \nMicrosoft Corporation is headquartered \nin Redmond, Washington, and is publicly \ntraded on the Nasdaq. In Fiscal Year 2010 \nMicrosoft employed about 89,000 people in more than 100 countries/regions and territories. In FY2010, our business was \nstructured into the following five integrated \noperating segments: ", "TH\nTD_3\nTD_4", "TD_34\nTD_35\nTD_36", "TD_40\nTD_41\nTD_42", "TD_72\nTD_73\nTD_74\nTD_75", "TD_79\nTD_80\nTD_81\nTD_82\nTD_83", "Operating our business responsibly is essential to our long-term growth. Continued business success for Microsoft depends on the prosperity and health of communities, the strength and stability of economies, and the shared (and limited) resources of our planet. Therefore, operating our business in a way that is conscious of our social and environmental impact is a core tenet of the Microsoft business strategy. This not only maintains our license to operate and grow, but also helps us manage our \nbusiness more efficiently, which \nin turn creates value for our shareholders and for society. \nIn seeking to operate responsibly, Microsoft is guided by our mission and adheres to our values, principles, and policies—from reducing our environmental footprint to ensuring that we compete responsibly in the global marketplace. We are also guided by the UN Global Compact and have committed ourselves to aligning our business operations with 10 established principles, spanning human rights, labor, environment, and business ethics. \nBut Citizenship is not just how we do things—it’s also what we do and the effect we have. We continue to keep responsibility in focus in the products and services that we develop. This ranges from making \nMicrosoft products more energy efficient to \nproviding privacy and parental controls to help protect children’s safety online. \nIn this section, we will discuss our specific \nwork in FY2010 to operate responsibly, the targets we have set, our progress so far, and our plans for the future. ", "The Microsoft benefits programs extend \nfrom the workplace into homes and communities. We offer a zero-contribution health plan, a 401(k) savings with corporate match, a discount purchase plan for Microsoft stock, and the Stay Fit health club and reimbursement offerings. \nMicrosoft encourages balance between \nwork and life, providing benefits such as \nreferral services, proactive health pro\ngrams, financial education, maternity and parental leave allowances, flexible work \narrangements such as part-time and telecommuting, and other programs. The offerings are continuously reviewed and \nupdated to reflect the interests and needs \nof our employees around the globe. ", "Elevate the talent pipeline conversation to the Microsoft senior leadership team regarding retaining, advancing, and hiring senior-level women and minorities in the United States \nEngaged the senior leadership team in a pipeline discussion on senior-level women globally and minorities in the United States, resulting in an increased focus on retaining strong performers, advancing internal talent, and identifying strategic external employees for hire \nContinued to support employee-driven Diversity Advisory Councils. In FY2010, these councils were restructured into about 50 Employee Resource Groups and Employee Networks to align with Microsoft business needs and enhance our focus on inclusion \nEncouraged minority students to pursue careers in technology. Programs included the nineteenth annual Blacks at Microsoft Employee Network student day and the DigiGirlz technology programs that give high school girls the opportunity to explore careers in technology \nHeld a variety of women’s networking events in Belgium, China, Denmark, Ireland, Israel, and the United Kingdom. The events raised awareness for issues of advancement for women in high technology, encouraged networking, and enabled sharing of best practices \nHeld the 2010 Microsoft China Women’s Leadership and Development Conference in Beijing and Shanghai \nReceived numerous honors for fostering an inclusive workplace, including recognition as one of America’s Top Corporations for Women’s Business Enterprises, Working Mother’s 100 Best Companies for Working Mothers, the Human Rights Campaign Foundation’s Best Places to Work, and annual Great Place to Work awards from the Great Place to Work Institute for locations throughout the United States, Asia, and Europe. In 2010, Microsoft was named a Great Place to Work in Austria, Belgium, Denmark, Finland, France, Germany, Ireland, Italy, Japan, the Netherlands, Norway, Portugal, and Sweden \nProvided a customized Hispanic theme pack for Windows 7 that enables Hispanics/Latinos to personalize their experience through audio and artwork \nWomen amp; Minority Statistics Woman amp; Minorities at Microsoft FY2010 ", "TH_48\nTD_120\nTH_49\nTD_121\nTH_50\nTD_122\nTH_51\nTD_123\nTD_124", "NUMBER OF EMPLOYEES \n4,200 VOLUNTEERING \nCommitments amp; Progress _4\nSince the launch of our giving program, Microsoft employees, with corporate match, have donated more than $750 million to \nnonprofit organizations. Since 2005 in the \nUnited States alone, employees have volunteered more than 1 million hours in their communities. Microsoft has matched each of those hours with a $17 contribution to \nthe nonprofit of the employee volunteer’s \nchoice. \nIn FY2010, Microsoft employees again made an extraordinary impact working together for our communities. ", "H5_14\nP_92\nP_93", "About Our Partnership Model \nThe Microsoft business model relies on a global network of more than 640,000 local business partners that develop, market, retail, and service our products. These partners are essential to the operation of \nour business, significantly extending our \nability to reach and serve customers. They are also valuable to their own communities, generating local employment, innovation, growth, and opportunities. The vast majority of Microsoft partners are small to medium-sized, locally owned companies that serve local clients. Such companies are often the backbone of their economies and are responsible for economic growth across all types of markets far beyond the information technology (IT) sector. \nA 2009 study by research firm International \nData Corp (IDC) found that the software \nsector is making an especially significant \ncontribution to the IT sector, which itself is helping stimulate economic recovery and job creation. Further, the study found that the community of Microsoft partners is at the heart of the global IT economy, employing up to 42 percent of all IT workers. According to the study, by the end of 2013, the worldwide IT industry will have created nearly 6 million new family-wage jobs—an annual rate of growth of 3 percent, almost triple the rate of growth of other sectors of the overall economy. ", "TR", "TD\nTD_0\nTD_1\nTD_2", "TD_48\nTD_49\nTD_50\nTD_51\nTD_52", "TH_18\nTD_84\nTD_85\nTD_86", "Strategy: Promote a Healthy Online Ecosystem \nStrategy: Operating Responsibly \nFunded the collection of 9.3 million tons of e-waste, equivalent to 27 percent of total sales volume \nInvested $299 million in employee training programs and $45 million in employee wellness programs \nAchieved a 91 percent employee satisfaction rating on our Corporate Citizenship work in annual employee survey, which had an 85 percent worldwide response rate \nReached a resolution with the European Commission on a number of long-standing competition law issues \nReaffirmed our commitment to refrain from making corporate contributions to noncandidate or nonparty political \ncommittees despite the Citizens United v Federal Election Commission U.S. Supreme Court decision allowing such contributions ", "TH_30\nTD_103\nTH_31\nTD_104\nTH_32\nTD_105\nTH_33\nTD_106", "H5_10\nP_84\nP_85", "H5_23\nP_111", "TR_36", "TH_60\nTH_61\nTD_141\nTH_62\nTD_142\nTD_143\nTH_63\nTD_144", "P_3\nP_4\nP_5\nP_6", "The Microsoft business segments provide management with a comprehensive view of our key businesses. The segments enable the alignment of strategies and objectives across the development, sales, marketing, and services organizations, and they provide a framework for timely and rational allocation of resources within businesses. This structure also helps us ensure high \nproduct quality and foster innovation to \nmeet the changing technology needs of our customers. \nFor the fiscal year ending June 30, 2010, \nMicrosoft reported record revenues of $62.48 billion, a 7 percent increase from 2009. Operating income was $24.10 billion, an 18 percent increase from 2009. Earnings per share were $2.10, an approximately 30 percent increase from 2009. \nIncludes Microsoft Office products, Microsoft Dynamics®, and Unified \nCommunications business solutions ", "Strategy: Address Societal Challenges \nEducation Expanded the Innovative Schools Program as a part of our Partners in Learning efforts to include 12 Mentor \nUse technology to extend access to schools, 30 new Pathfinder schools, and 2,500 Breadth schools \neducation \nReached 4 million people through Shape the Future, a program through which Microsoft partners with governments to develop technology solutions to foster economic growth through education \nStrategy: Strengthen Economies \nGenerated an average of $8.70 for our partners for every dollar of Microsoft revenue ", "TH_8\nTD_18\nTH_9\nTD_19\nTH_10\nTD_20\nTH_11", "TD_25\nTD_26\nTD_27\nTD_28\nTD_29", "To understand and maximize our impact in stimulating the global technology economy, Microsoft conducted a study in partnership with International Data Corp (IDC). Released \nin October 2009, the findings showed that the IT industry, and Microsoft specifically, \nwill be a key driver of economic recovery and job creation over the next few years. \nglobal challenges. In FY2010 we invested $8.7 billion (about 14 percent of revenues) on research and development, which is conducted by Microsoft Research (MSR) and within product development groups. In FY2010 we increasingly adopted a global approach to innovation. We believe that this will help us remain competitive in local markets and attract top global talent. Microsoft conducts research and development activities in 50 locations around the world. While most Ramp;D employees are located in the \nUnited States, significant Ramp;D activities are \nconducted in Canada, China, Denmark, the United Kingdom, India, Ireland, and Israel. \nSome advancements made in FY2010: ", "TD_58\nTD_59\nTD_60", "H5_0\nP_53\nP_54", "TH_26\nTD_100\nTH_27\nTD_101\nTH_28\nTH_29\nTD_102", "TR_33", "TD_127\nTD_128\nTD_129\nTD_130", "Target: Reduce building energy use by 10 percent in FY2010 \nApproximately 25 percent of our total energy purchases come from renewable sources, and over half of the energy used \nat Microsoft headquarters comes from \nhydroelectricity. \nL_15\ntext_14", "In FY2010 at Microsoft headquarters (which represents about half of our total office \nspace), we diverted 63 percent of our solid \nwaste from landfills through recycling and \ncomposting programs—up from 59 percent in FY2009. As a result of this effort and others, the dining program at our main campus in Redmond this year became a Green Res\ntaurant Association 2-Star Certified Green Restaurant—the first and only corporate \ndining program to earn this recognition. \nWe are also working on recycling and waste reduction in the offices outside our headquarters, and in FY2011 we will be improving our tracking of these efforts. ", "Microsoft seeks to ensure that we treat our suppliers fairly and responsibly. In FY2010, the Global Microsoft Vendor Program (MSVP) Team surveyed more than 2,000 vendors in the United States, Asia, Latin America, Europe, the Middle East, and Canada, and had a response rate of 35percent. (MSVP vendors constitute our preferred supplier base and represent about 80 percent of our overall procurement spending). \nWe’re gratified that more than 90 percent \nof MSVP vendors reported their Microsoft business relationship to be better than that with their other clients. \nOutlook _9\nMicrosoft has worked for decades to manage our supply chain responsibly and \nwas among the first wave of information \ntechnology companies to develop common codes and practices to promote human rights and workplace rights in its supply chain. Allegations of unsafe and unethical working conditions in at least one of our suppliers’ factories have prompted us to review and enhance our standards and audit processes and to consider what other parts of our supply chain may pose similar risks. In FY2011, we will be updating our Vendor Code of Conduct as part of an all-up review and assessment of our supply chain management policies and practices. ", "Microsoft released several products and services in the past year that promote our goals of increased privacy and safety. These are just some of those technologies: \n• PhotoDNA™: In December 2009, Microsoft donated PhotoDNA technology to the National Center for Missing and Exploited Children (NCMEC) to help disrupt the spread of graphic child pornography images online. Since 2003, NCMEC has reviewed and analyzed almost 30 million photos and videos of child sexual abuse, and the organization projects that 9 million more such photos and videos will be reviewed and analyzed in the coming year. Developed by Microsoft Research in collaboration with Dartmouth Col\nlege, PhotoDNA uses a technique known as “robust hashing” to create a unique signature, like a fingerprint, for a digital \nphoto. This provides a way for online service providers to identify and stop the \nspread of the most horrific images of child \nsexual abuse. \n• Windows Live Family Safety: Launched in August 2009 as part of Windows Live® Essentials, Windows Live Family Safety is a free parental control program that gives parents the ability to manage their children’s Internet activity, including websites and online contacts. The program can also generate a report for parents so that they can monitor their children’s computer and online activity. In June 2010, Windows Live Family Safety Wave 4 beta was released, offering new image-blocking capability and improved performance and integration with Windows Parental Controls. In addition, SafeSearch is locked “on” for all major search engines and websites. ", "The technology industry, including Microsoft and our partners, is a major driver of jobs and innovation globally. We are working with governments around the world to find ways to spur job creation and innovation. In FY2010, we did this in a number of ways, including the following: \n• Microsoft Chief Research and Strategy Officer \nCraig Mundie served on President Obama’s Council of Advisors on Science and Technology, working with the administration, educators, and other industry leaders to develop \nU.S. innovation policy. \n• We partnered with governments and agencies to implement workforce development programs such as Britain Works and Elevate America to provide workers with training in the technology skills that they need for \ntwenty-first century jobs. \n• In November, President Obama launched Educate to Innovate, a national initiative to inspire students to develop science, technology, engineering, and math (STEM) skills. Microsoft partnered with the administration on this initiative, providing support for STEM education, including STEM-related video games for 12 to 16 year olds. ", "LI_28", "LBody_74\nLBody_75\nLBody_76\nLBody_77\nLBody_78\nLBody_79\nLBody_80", "TR_37", "TH_64\nTD_145\nTH_65\nTD_146\nTH_66\nTD_147\nTH_67", "TD_13\nTD_14\nTD_15\nTD_16\nTD_17", "TD_30\nTD_31\nTD_32\nTD_33", "TD_37\nTD_38\nTD_39", "TR_19", "TH_15\nTD_76\nTH_16\nTD_77\nTH_17\nTD_78", "TH_34\nTD_107\nTH_35\nTH_36\nTH_37\nTD_108", "TH_38\nTD_109\nTH_39\nTH_40\nTH_41\nTD_110", "TD_113\nTD_114\nTD_115\nTD_116", "LI_11", "LBody_31\nLBody_32\nLBody_33\nLBody_34\nLBody_35\nLBody_36", "TH_45\nTD_117\nTH_46\nTH_47\nTD_118\nTD_119", "Outlook _6\nThe economic climate this past year made the year challenging for fundraising. Despite the challenges, Microsoft employee giving raised more than $84 million, including the corporate match. In addition, we celebrated a major milestone with our employee volunteer program, reaching over 1 million hours of volunteer service since the program was started in FY2006. \nIn FY2011, Microsoft is focusing on increasing our giving and volunteering efforts and on enabling our employees to better contribute their technology skills in the communities where those skills are most needed. \nL_11\ntext_10", "LI_15", "LBody_44\nLBody_45\nLBody_46\nLBody_47\nLBody_48\nLBody_49", "Microsoft is focused on reducing the environmental impact of our supply chain. For more information on these efforts, see the Responsible Sourcing section of this report. \nIn addition to reducing our carbon footprint, Microsoft continues to work to reduce our \nOutlook _8\nIn all of these areas, Microsoft will continue working to reduce energy use, carbon footprint, and other environmental impacts. In FY2011 we are working to enhance the systems that we use to track energy use and our carbon footprint globally to also cover our water consumption and waste; we plan to publicly report those for FY2011. In regard to our FY2012 emissions goal, the shift to cloud computing complicates our \ncarbon reduction efforts by requiring us to \nexpand our data center operations. We are currently evaluating options to address this issue. ", "The Microsoft Vendor Code of Conduct sets workplace and human rights standards for our suppliers. We seek to ensure conformance to these standards through direct engagement and training of our contracted direct material suppliers. We conduct informal and formal risk-based third-party monitoring based on the Electronics Industry Citizenship Coalition (EICC) Code of Conduct, laws, and regulations. This performance and capability assessment lets us identify performance gaps and improve processes to reduce risk and ensure a robust and sustainable supply chain. \nIn FY2010, a report from the international \nnonprofit organization National Labor \nCommittee (NLC) pressed us to take a hard look at our existing standards and how we implement them. The report charged employee mistreatment at a supplier factor in Dongguan, China, that assembles and packages hardware products for Microsoft and a range of other companies. This supplier has signed our Vendor Code of \nConduct and already faced quarterly audits \nfrom Microsoft personnel and annual audits from an independent auditor. During the past two years, worker overtime has been significantly reduced and worker compensation is in line with the EICC standards for the Dongguan area. Nevertheless, we took the NLC report extremely seriously, initiated a special on-site audit, and are now working with this supplier to ensure full compliance with the provisions of our Code of Conduct. This experience has also prompted us to look for ways to enhance our Code of Conduct and monitoring processes to ensure the fair treatment of all workers in our supply chain. ", "• U-Prove: In March 2010, Microsoft released a community technology preview of our U-Prove technology. U-Prove gives online service providers tools to help them better protect user privacy and enhance security by reducing the amount of information that users need to disclose to complete online transactions. \n• Microsoft® Forefront® Identity Manager (FIM) 2010: By using FIM 2010 (released in March 2010), which replaces Identity Lifecycle Manager 2007, IT professionals have more tools to solve day-to-day tasks, such as delegating administration and creating workflows for common identity management tasks. \nL_19\ntext_18", "TR_35", "TH_57\nTD_138\nTH_58\nTD_139\nTH_59\nTD_140", "H5_21\nP_108", "In the United States, much of FY2010 was dominated by debate over the future of health care. This led to the health-care reform bill that was signed into law in March 2010. As this bill took shape, Microsoft \nengaged with policymakers to find ways \nthat technology could expand access to health care and decrease the cost of healthcare delivery. This work was started with the 2009 American Recovery and Reinvestment Act, which authorized about $20 billion in stimulus funding to spur adoption of technology by health-care providers. \nThe final health-care reform package \ncontinued to recognize technology as a fundamental pathway to the future success of the U.S. health-care delivery system. The basic framework of the new law promotes innovation and the use of technology to deliver on the promise of reform—evolving our nation’s health to drive better decision-making, broad-scale innovation, and consumer focus so that everyone can take advantage of advances in medicine, including more personalized care. The Recovery Act and health-care reform law are the initial steps in a longer path to meaningful and sustained changes to health care, and Microsoft will continue to participate in the process of implementing these laws. \nBeyond the United States, Microsoft worked with governments to examine how technology could be used to promote better access to health care. Among these efforts, in October 2009, Microsoft Research convened the mHealth Summit to discuss how the world’s 6.5 billion people can gain access to better health care with the assistance of mobile technology. More than 650 researchers and policymakers attended and exchanged ideas to encourage the development and deployment of practical, affordable, and effective technology solutions to health-care challenges in underserved and resource-poor populations. ", "This document is provided “as-is”. Information and views expressed in this document, including URL and other Internet Web site references, may change without notice. You bear the risk of using it. \nThis document does not provide you with any legal rights to any intellectual property in any Microsoft product. You may copy and use this document for your internal, reference purposes. \nMicrosoft, Bing, BizSpark, DreamSpark, Forefront, Hohm, Hotmail, Internet Explorer, Kinect, Kodu, Mediaroom, Microsoft Dynamics, Mouse Mischief, MSN, MultiPoint, Outlook, PhotoDNA, Silverlight, SQL Azure, SQL Server, Visual Studio, Windows, Windows Azure, Windows Live, Windows Server, Windows Vista, Xbox 360, Xbox LIVE, and Zune are trademarks of the Microsoft group of companies. All other trademarks are property of their respective owners. \nPLEASE RECYCLE \nThank You. \nPrinted on Mohawk Options Cover and Text Paper This paper is FSC certified and made with 100% Post-Consumer Waste Fiber, Carbon-neutral and process-chlorine free, Green-e certified windpower. ", "TH_12\nTD_21\nTH_13\nTD_22\nTH_14", "Technology for Humanitarian Needs amp; Disaster Response \nIn partnership with Emory University, creaated the H1N1 Online Self Assessment Tool to help people determine whether they have the symptoms of H1N1 and what actions to take if they do \nProvided guidance on technologies that enable individuals to work from home to reduce the spread of the disease Worked with Harvard Medical and Mayo Clinic on MSN Health H1N1 Information Center \nHelped customers and partners resume operations \nUsed Bing Maps to provide before and after imagery of the affected areas to help aid organizations focus their responses Worked with organizations— including NetHope, the UN ", "We see it as our responsibility to operate a responsible business in both the virtual and physical worlds. In this section we will discuss our goals to operate responsibly and to promote a healthy online ecosystem. As we continue to shift our focus to cloud computing, the online ecosystem goals become even more core to our future as a business. \nThe following represent some of our most \nsignificant goals to operate responsibly and \npromote a healthy online ecosystem. Further information on these and other targets is available in the remainder of this section. \nMicrosoft Connector Service uses a series of transports which eliminate 4.2 million miles per year. ", "TH_42\nTD_111\nTH_43\nTH_44\nTD_112", "LI_9", "LBody_23\nLBody_24\nLBody_25\nLBody_26\nLBody_27", "H5_4\nP_76\nP_77", "Target: Achieve a 6 percent reduction in carbon emissions by consolidating computer labs \n• In FY2010, we finished our first purpose-built \nResearch amp; Development Support facility. It is designed to consolidate computer labs and servers, and ultimately to deliver an overall carbon savings of 12,000 metric tons per year. \nReducing Other Environmental Impacts \nother environmental impacts. The following is a sampling of some of these efforts in FY2010. ", "At Microsoft, we view our supply chain as an extension of our business. As a result, part of our commitment to operate responsibly means working to ensure that our 62,000 contractors, suppliers, and vendors understand and share that commitment. All vendors doing business with Microsoft must agree to abide by our Vendor Code of Conduct, which sets out our expectations about ethical business practices, employment practices, and compliance with environmental and worker safety \nrequirements. For some types \nof suppliers, such as those providing contract manufacturing of our Microsoft-branded hardware, we go beyond the Vendor Code of Conduct with \nadditional requirements and an \non-site audit program. ", "Suppliers are part of our business, and so we take suppliers into account in addressing our environmental footprint. There are numerous ways that we work to address environmental issues with our suppliers, from measuring the greenhouse gas emissions of our Tier 1 contract hardware manufacturers to seeking more locally sourced and organic food for our cafeterias. To increase the demand for greener computers, Microsoft recently updated our corporate computer purchasing standards to make sure that all computers that we buy for our employees \nmeet the latest energy efficiency standards \nfrom the U.S. Environmental Protection \nAgency’s Energy Star 5.0 requirements. We also require that computers that we buy meet the Gold level requirements of the \nElectronic Product Environmental Assessment Tool (EPEAT), an environmental rating initiative. ", "In late 2009, the U.S. Department of Justice (DOJ) declared in court that the Microsoft work on documenting various Windows protocols was substantially complete. This recognition by the DOJ of the accomplishments of our protocol documentation teams is an important step in our compliance with the consent decree that terminated the competition lawsuit against Microsoft brought in the late 1990s. \nIn December 2009, the European Commission and Microsoft arrived at a resolution on a number of long-standing competition law issues. Microsoft made a legally binding commitment that personal computer manufacturers and users will continue to be able to install any browser on Windows, make any browser the default browser, and turn access to Internet Explorer on or off. In addition, Microsoft agreed to use Windows Update to provide a browser choice screen to Windows users in Europe who are running Internet Explorer as their default browser. This browser choice screen presents a list of browsers and provides links to learn more about them and install them. The design and operation of this choice screen was worked out in the course of extensive discussions with the Commis\nsion and is reflected in the commitment that \nMicrosoft made. Starting on March 1, 2010, users who received the choice screen were free to choose any browser or to keep the browser that they have, as they prefer. The browser choice screen software update is also being offered as an automatic download through Windows Update for Windows XP, Windows Vista®, and Windows 7. \nMicrosoft compliance with antitrust rulings is overseen by the Board of Directors and particularly the Antitrust Compliance Committee. ", "Sincerely, \nSteven A. Ballmer \nChief Executive Officer \nMicrosoft Corporation ", "FY2008 \nFY2009 \nFY2010 \nFY2008 FY2009 FY2010 ", "$99 MILLIONGIVING AS A PERCENTAGE 3.2%OF PRE-TAX PROFITS\n $504 MILLION\n $603 MILLION \nFY2010 _0", "$122 MILLION $376 MILLIGIVING AS A PERCENTAGE 2.09%OF PRE-TAX PROFITS\nON\n $498 MILLION \nFY2008 _0", "P_21", "Expanded the Innovative Schools Program to include 12 Mentor \nschools, 30 new Pathfinder schools, and 2,500 Breadth schools \nDeployed the Partners in Learning Network to 39 countries/regions, making it one of the largest social networks for educators \nIntroduced Innovative Teaching and Learning (ITL) research to understand the factors that transform teaching practices and outcomes ", "Outlook _1\nIn FY2011, as the global economy continues to recover, Microsoft will keep a sharp focus on jobs and workforce development. Over the next two years, through our various technology skills training programs, we anticipate reaching 50 million people, helping them develop the skills that they need to \nfind work or advance their careers. \nIn terms of research and innovation, Microsoft will work with our partners, particularly in the area of cloud computing, to uncover its potential for individuals and economies worldwide. Recent research indicates that during the next few years, cloud computing and its resulting innovations will help lead to the formation of more than 100,000 new companies in all sectors of the economy, creating 1 million new jobs inside and outside the IT industry and pumping $800 billion in new revenues into local economies around the world. ", "Europe \nMEA \nLATAM \nN. America ", "NORTH AMERICA 62%$314,367,220 LATIN AMERICA $27,427,007 \nEUROPE 21%$104,621,779 MEA $6,683,881 5.5% \n1.5% APAC $51,087,544 \n10% ", "APAC _0\n25 \nAPAC _1\n1,570 ", "LI_7\nLI_8", "Microsoft encourages employees to take part in shaping our business and their careers. The company offers multiple, customizable opportunities for employees to further their professional growth. We encourage a 70-20-10 philosophy for learning and development: 70 percent on the job, 20 percent learning through others such as mentors and teammates, and 10 percent in formal online or in-person training. \nWe measure the success of employees’ growth through our annual performance management process, which focuses \nequally on career management and \nperformance. The process encourages employees and their managers to focus on near-term delivery on goals and business outcomes, as well as on the longer-term cultivation of an enriching career. ", "Diversity Outreach at Microsoft \nMicrosoft diversity outreach programs worldwide are geared toward promoting technology-related careers among minority groups, youth, and women. We will continue to partner and support organizations that strengthen diversity and inclusion in our industry and in the marketplace. In the United States, these organizations include the National Urban League, Catalyst, the Women’s Business Enterprise National Council, and the Minority Business Development Agency. Programs on which we collaborate with these organizations include technology seminars that target minorities, youth, and women. Microsoft focuses on programs that can elevate visibility of industry opportunities to minorities and that can cultivate the talents of young students to stimulate their interest in technology careers. We also partner with and support premier national organizations such as the National Society of Black Engineers, the National Black MBA Association (NBMBAA), and the National Association of Minority Engineering Program Administrators. Over the past few years we have invested hundreds of millions of dollars in dedicated outreach to attract minorities and women \nto high-tech careers. This financial support \nwas in the form of grants, scholarships, event sponsorships, and partnerships with universities and organizations that serve women globally and minorities in the United States. ", "TD_125\nTD_126", "We also work to promote positive environmental and social outcomes from our sourcing practices, ranging from increasing market demand for greener computers and local organic food to supporting diverse suppliers. \nOur sourcing initiatives are largely decentralized across Microsoft business groups, with central resources provided by our Corporate Global Procurement Group, Legal and Corporate Affairs Department, and subject matter experts such as our Director of Supplier Diversity. \nCommitments amp; Progress _6\nThe following are some of the areas of focus within our supply chain. ", "The Microsoft Director of Supplier Diversity leads a team dedicated to providing the opportunity to effectively compete for our \nbusiness to certified Minority and Women \nBusiness Enterprises and veteran-owned businesses, Small Disadvantaged Businesses, and HUBZone business concerns. \nIn FY2010, we spent over $1 billion with suppliers that are woman-owned, minority-owned, or veteran-owned. This puts us among the top 15 companies worldwide in supplier diversity spending. We are one of only about a dozen other U.S. corporations that spend a similar amount with such businesses. The team also worked with the Microsoft Treasury Department to increase our deposits in 20 local, minority-owned banks. Finally, as part of our commitment to supplier diversity, Microsoft made a $3 million contribution to the Business Consortium Fund of the National Minority Supplier Development Council. ", "H5_16\nP_99", "In responding to restrictions on content and communications, Microsoft is committed to the GNI guidelines on freedom of expression, including those that relate to handling \ngovernment demands to filter or remove \naccess to content. We have also been working to audit and enhance our 2006 blog content principles with the goal of forming a core set of guidelines that can be applied to all Microsoft content services worldwide. \nApplying the Principles to Business ", "Operating Responsibly 28 Extending Technology 11 \nContents \nIntroduction 3 Education 14 Jobs amp; Innovation 17 \nNonprofits 21 ", "REVENUE amp; OPERATI\nNG INCOME \nEARNINGS PER SHARE ", "89,000 \n0.25% \n$62.48 billion (FY2010) ", "14.9 million * \n42% \n$537 billion (2009) ", "$113 MILLION $403.9 MILLIONGIVING AS A PERCENTAGE 2.61%OF PRE-TAX PROFITS\n $516.9 MILLION \nFY2009 _0", "TD_23\nTD_24", "LI_0", "LBody_1\nLBody_2\nLBody_3", "Imagine Cup \nGrow the program to \nRegistered more than 325,000 students from more than 100 coun-", "Global student technology competition that in-\nregister 300,000 student \ntries/regions in FY2010 ", "spires young people to apply technology to solve the world’s toughest problems \ncompetitors by 2010 \nReached more than 1 million students in the past five years alone ", "Microsoft DreamSpark® \nGive students access \nExpanded the program to 135 countries/regions ", "Students to Business \nIncrease the number of \nTrained 233,000 students in FY2010, 15,000 of whom have applied ", "Connects students with Microsoft partner com-\nstudents globally that \nfor jobs ", "panies, providing skills training, industry insight, and job placement services \nbenefit from the Students to Business program \nRegistered more than 3,000 companies this past fiscal year ", "LI_1", "LBody_4\nLBody_5\nLBody_6", "LI_3", "LBody_9\nLBody_10\nLBody_11", "Provides people with native language interfaces \nthat broaden the avenues to technology, reverse \nlocal “brain drain,” and preserve local culture Joined Change the Equation, a joint effort of the Obama administration and corporate CEOs to improve STEM education in the United States ", "Shape the Future \nWork with governments \nReached more than 4 million citizens globally, through more than 150 ", "Works with governments to develop smart, \nto reach 3 million citizens \npublic/private partnerships, providing them with relevant and afford-", "sustainable, and inclusive technology solutions \nbefore the end of FY2010 \nable access to education technologies ", "LI_5", "LBody_14\nLBody_15\nLBody_16", "Microsoft _0\nDouble Microsoft Innovation \nReached 250,000 people and trained ", "Innovation Centers \nCenters’ capacity so they can \n130,000. In FY2011, our goal is to reach an ", "Hubs that offer courses and resources in \nreach 1 million people by 2012 \nadditional 250,000 and train 150,000. ", "Microsoft® BizSpark™ \nIncrease the number of people \nReached approximately 40,000 people. In ", "Provides startups with access to software \nreached \nFY2011, our goal is to reach 60,000. ", "Community \nReach more than 20 million \nSurpassed our goal and reached more than ", "Technology Skills \npeople globally per year \n170 million people through CTSP participa-", "Elevate America \nReach 2 million people with tech-\nOffered more than 880,000 free technol-", "Elevate America Provides technology skills \nnology skills training by 2012 \nogy training and certification vouchers to ", "Britain Works \nReach 500,000 people with tech-\nLaunched the program in FY2010 and ", "Equips British workers and job seekers \nnology training by 2012 \npartnered with three organizations that will ", "Pilot and scale innovative ways for \nnonprofits to use \ntechnology ", "25\nEurope _0\n1,463", "22 \nMEA _0\n943 ", "29 \nLATAM _0\n1,939 ", "LI_10", "LBody_28\nLBody_29\nLBody_30", "LI_14", "LBody_41\nLBody_42\nLBody_43", "Reduce carbon emissions per Taken steps to reduce our carbon \nunit of revenue by 30 percent footprint. In FY2010 we achieved \nby 2012 compared with 2007 a 35 percent reduction in carbon emissions from travel. We are working toward our 2012 goal ", "Target: Reduce corporate travel by 20 percent in FY2010 \n• We are continually working to reduce our corporate travel through the use of travel alternatives, including Microsoft technology to enhance remote communication. Last year, we reduced our carbon emissions from travel by nearly 35 percent. \nWe have also given attention to emissions from employees’ commutes. We now operate a private bus system for employees that eliminates 4.2 million miles of employee travel each year. ", "Microsoft is working to increase recycling of our products and of all consumer electronics after use. In calendar 2009, we funded the collection and recycling of more than \n9.3 million kilograms of electronic materials—27 percent of worldwide sales volume. We expect that number will reach 28 percent by the end of calendar year 2010. \nAs part of this effort, in April 2010 Microsoft joined Dell and Goodwill Industries International in the Reconnect computer recycling program, which lets consumers recycle used personal electronics at no cost. By supporting the program, the 1,900-plus participating Goodwill locations in the United States and Canada will now collect Microsoft entertainment products, including Xbox, Zune, and accompanying accessories. ", "LI_17", "LBody_52\nLBody_53\nLBody_54", "L_20\nLI_21", "In 2009 Microsoft formalized some additional steps to help protect the privacy of customer data, including in the context of free expression. For example, we consider free expression and privacy when determining the markets where we will store customer data. Before certain types of personal information can be hosted in a particular country, Microsoft undertakes a risk assessment process. This includes an examination of the country concerned, including a review of its overall human rights situation \nand the rule of law, as well as specific laws, \npolicies, and practices. Senior executive leadership reviews this assessment before approving a decision to locate the personal information in the country. ", "LI_24", "LBody_65\nLBody_66\nLBody_67", "STATE CANDIDATE \nFEDERAL amp; STATE COMMITEE \nFEDERAL CANDIDATE ", "*This represents calendar year 2009 contributions \nIn addition to the contributions made by MSPAC, Microsoft as a company contributed $233,182 to state and local political campaigns in 2009. \nMicrosoft does not support political candidates or campaigns outside of the United States. ", "In compliance with regulations and our commitment to transparency, Microsoft \nregularly files reports detailing our lobbying \nactivities. ", "Extending the Benefits \nOperating ", "of Technology \nResponsibly ", "• Address Societal Changes \n• Promote a Healthy Online Ecosystem ", "• Strengthen Economies \n• Operate Responsibly ", "Our Corporate Citizenship Structure \nCorporate Citizenship is integrated across the Microsoft business groups, corporate functions, subsidiaries, and country-level operations. Citizenship impacts are considered in the development of new product, program, and service offerings. ", "REVENUE \nOPERATING INCOME ", "IT Workforce \nRevenues ", "$110.3 MILLION $322..3 MILLION $432.6 MILLION GIVING AS A PERCENTAGE 2.15%OF PRE-TAX PROFITS\nFY2007 ", "Nonprofit Effectiveness \nDonated $504 million in software to almost 43,700 organizations worldwide ", "Jobs amp; Economic Impact Create new jobs and economic opportunities \nSupported 14.9 million jobs worldwide through our community of partners and Microsoft-related IT professionals ", "Workforce Development \nProvided technology training to more than 170 million people in more than 100 countries/regions since 2003, and ", "Retrain workers and the unemployed \nmore than 29 million people in FY2010 ", "Innovation \nInvested $8.7 billion in Ramp;D, equivalent to 14 precent of revenue ", "research, and development \nOpened 11 new Microsoft Innovation Centers, bringing the total worldwide to 100; reached 250,000 people and ", "LI", "LBody\nLBody_0", "Provides free student access to Microsoft pro-\nto software ", "Reduce the language \nTranslated Microsoft software into nearly 100 languages ", "barrier to technology \nUsed developers around the world, including localization hubs in the", "LI_2", "LBody_7\nLBody_8", "for their citizens that are focused on economic \nto help them access tech-", "growth through education \nnology ", "Advocating for Quality STEM Education \nActively support policies ", "Promotes science, technology, engineering, and \nand programs to improve ", "math education \nacademic performance ", "LI_4", "LBody_12\nLBody_13", "Program (CTSP) \ntion since 2003—over 29 million in FY2010. In ", "Supports technology training ranging \nFY2011, our goal is to reach 23 million people ", "from basic computer skills to advanced \nthrough CTSP. ", "training and resources to help people in \nequip individuals with the technology skills ", "the United States find employment \nthat they need to grow their careers and find ", "with the technology skills that they need \nhelp provide training ", "LI_6", "LBody_17\nLBody_18", "$504 Million in software to 43,650 organizations worldwide \n2010 Corporate Citizenship Report _0", "Connect nonprofits \nHeld more than 100 NGO Connection Days around the world, training more than 9,200 nonprofit ", "to relevant technol\nprofessionals from more than 6,300 organizations on technology solutions for nonprofits, with the help of ", "ogy services to \n700 Microsoft volunteers ", "build capacity \nSupported the NPower Network in delivering IT services, support, and training to more than 1,400 ", "NUMBER OF EVENTS \nNUMBER OF NGOS ", "6\nN. America 395 ", "LBody_19\nLBody_20", "LBody_21\nLBody_22", "H1N1 Outbreak \nMay to December 2009 ", "Chile Earthquake \nFebruary 2010 ", "Haiti Earthquake \nSupported nonprofit ", "January 2010 \nresponders with ", "Governance \nOutperformed 99 percent of Samp;P 500 companies as measured by Institutional Shareholder Services, a leading indepen-", "Manage an accountable and \ndent ratings firm ", "Achieving the Microsoft corporate mission relies on our diverse and talented employees around the world—they are critical to the company’s longterm success. Located in more than 100 countries/regions, our employees drive our businesses; develop the products, services, and solutions that our customers want and need; and apply their talents and passion toward making a difference on the things that matter to them. In FY2010, we directly employed nearly 90,000 full-time staff worldwide—about 55,000 in the United States and about 35,000 internationally. \nAll of our employee efforts are overseen by our Senior Vice President of Human Resources, who reports to our CEO. ", "Women globally in the Microsoft workforce \n24% ", "Minorities in the United States Microsoft workforce \n34% ", "LI_12", "LBody_37\nLBody_38", "FY2010 Employee Giving US Only Data \nMORE THAN 34,500 EMPLOYEES ", "EMPLOYEE DONATIONS \n$40.8 MILLION", "MICROSOFT MATCH \n$43.7 MILLION ", "TOTAL _0\nMORE THAN ", "LI_13", "LBody_39\nLBody_40", "Target: Increase data center efficiency \n• Our new data centers consume 50 percent less energy for the same level of output ", "than data centers built just three years ago, and we have aggressive goals for further improvements by 2012. In FY2010, Microsoft centers in Chicago and Dublin received \nindustry awards for energy efficiency. ", "LI_16", "LBody_50\nLBody_51", "Improve the energy efficiency of IT Launched Windows 7, our most energy efficient operating system to date, designed to use less energy when \nin our own products and working in idle or active. ", "LI_18", "LBody_55\nLBody_56", "LI_19", "LBody_57\nLBody_58", "LI_20", "• Privacy and online safety education: Microsoft will continue to speak with consumer audiences and public officials around the globe to build awareness of the technology tools and actions that can help improve safety and privacy for both individuals and organizations. \nLBody_59", "LI_22", "LBody_61\nLBody_62", "LI_23", "LBody_63\nLBody_64", "LI_25", "LBody_68\nLBody_69", "LI_26", "LBody_70\nLBody_71", "LI_27", "LBody_72\nLBody_73", "LI_29", "LBody_81\nLBody_82", "LI_30", "LBody_83\nLBody_84", "Microsoft® ", "2010 ", "Citizenship Report ", "2010 Corporate Citizenship Report ", "Humanitarian Response 25 Our People 30 Environmental Sustainability 38 Responsible Sourcing 44 Online Privacy and Safety 46 Governance amp; Compliance 53 Public Policy amp; Advocacy 59 About This Report 64 ", "As a part of our Microsoft Unlimited Potential™ efforts, we are proud to support the Global Give Back Circle in Kenya. Pictured on the cover of this report are girls participating in the program, gaining IT skills to help them transition from high school to tertiary education and into employment. The program provides girls in Kenya with the resources, tools, and mentors they need to break the cycle of poverty and give back as global citizens. ", "P_2", "Introduction ", "A Letter from Steve Ballmer ", "Our Chief Executive Officer ", "Microsoft has a long tradition of taking on tough challenges on a global scale. It started with our original vision of a computer on every desk and in every home. It continues with our current mission, which is to help people and businesses throughout the world realize their full potential. ", "social and environmental ones. ", "security concerns. ", "About ", "Percentage of ", "Employees ", "(Gobal) ", "Microsoft ", "Microsoft Partners Community ", "Extending Technology ", "CASH* SOFTWARE TOTAL ", "CASH* SOFTWARE TOTAL ", "CASH* SOFTWARE TOTAL ", "CASH* SOFTWARE TOTAL ", "Extending Technology ", "Enhance nonprofit effectiveness and ", "capacity through technology ", "Hosted 107 NGO Connection Days globally, training more than 9,200 professionals from more than 6,300 ", "nonprofits in effective use of technology ", "Humanitarian Needs and Disaster ", "Developed new tools to help respond to disasters. Examples include the H1N1 Online Self-Assessment Tool, which ", "Response ", "reached almost 300,000 people, and the first Haitian Creole machine translation system to aid earthquake relief, ", "Deploy technology to aid in disaster ", "providing about 250,000 translations a month ", "response ", "Accessibility ", "Included new accessibility features such as image magnification for the visually impaired in newly released prod-", "Make technology accessible to ", "ucts, including Windows 7, Office 2010, and Internet Explorer 8 ", "everyone, regardless of age or ability ", "With our partners, generated $537 billion in revenue and $179 billion in new investment in local communities ", "with workforce technology skills ", "Provided more than 880,000 technology training vouchers to individuals in more than 30 states in need of tech", "nology skills to grow their careers or find new jobs ", "Support and invest in innovation, ", "trained 130,000 by the end of FY2010 ", "Technology for Education ", "Foster communication and collaboration among students, teachers, parents, and employers. ", "Create opportunities to explore and share insight. ", "Students—regardless of their location and socioeconomic status—are our focus. With this focus, we build software and create programs to: ", "Partners in Learning ", " Helps schools gain better access to technology ", " Fosters innovative approaches to learning and teacher development ", " Provides education leaders with the tools to envision and implement change ", "Reach 250 million students and teachers across 115 countries/regions through Partners in Learning by 2013 (2003 goal) Reached nearly 200 million students and teachers in 114 countries/ regions since the program launched in 2003 ", "fessional design and development software ", "Local Language Program ", "United States, Ireland, India, China, and Japan ", "Increase the number of students who can access technology by decreasing the hardware costs ", "Enable shared learning experiences ", "Allow students to share information, but work at their own pace ", "Enables multiple students to connect to a single computer with their own monitor, keyboard, and mouse through USB or a video card. MultiPoint Server is designed for use in classrooms, libraries, and other learning environments to: ", "Kodu™ Game Lab: A free visual programming language that enables students to design, program, and test their own games and virtual worlds, facilitating critical thinking through games. An Australian pilot showed that Kodu motivated students and improved critical thinking, creativity, and collaboration. ", "Live@edu: Provides a familiar and reliable Microsoft® Office Outlook® Web App that can be cobranded with a school’s name and logo. It helps build lifelong ties between students and their educational institution. Live@ edu is more than just email—it includes access to calendars, document sharing, instant messaging, video chat, mobile email, and more. Live@edu has been adopted by ", "own computer mouse on a shared screen in a classroom setting. ", "Mobile ", "Games in learning ", "Assessment-based teaching ", "Overall, we believe that there will be three main trends that affect education globally in FY2011: ", "Extending Technology ", "and participation in STEM ", "disciplines ", "Microsoft Unlimited Potential: Education ", "Technology for Jobs, Workforce Development amp; Innovation ", "Microsoft innovation and Ramp;D: Microsoft was founded on innovation, and we continue to rely on innovation to grow and strengthen our business. As such, Microsoft is investing in Research (MSR) and a variety of product development projects that give us both a competitive advantage and help solve some of the world’s biggest challenges. ", "Microsoft Unlimited Potential: Through Microsoft Unlimited Potential, we invest in programs, products, and partnerships that catalyze the creation of jobs, business opportunities, and innovation. We also train people in jobs skills that are needed inside and outside the technology sector. Employment is increasingly contingent upon ", "based economies to sustain our business. ", "of Partners ", "Local Investment ", "Atlantic Rainforest Sensor Net: Microsoft Research, in collaboration with researchers from Johns Hopkins University and the Universidade de São Paulo, has deployed a network of sensors to study the Serra do Mar rainforest in Brazil, with the goal of gaining understanding of the complex systems of rainforests and their effect on climate change. ", "WorldWide Telescope | Mars and Terapixel: WorldWide Telescope, an immersive Internet environment from Microsoft Research that enables seamless panning and zooming across the entirety of Earth’s night sky, now features unprecedented detail and clarity of images from Mars. The Terapixel project, available on WorldWide Telescope and on Bing Maps, created the largest, clearest image—a terapixel in size—ever produced of the night sky. ", "Greening Corporate Networks: In corporate networks, most desktop computers are always on, even when they are not in use for extended periods. To address this wastefulness, Microsoft Research has designed a system that uses a “sleep server” to maintain the network presence of a sleeping machine and seamlessly awaken it on remote access. ", "Microsoft invests heavily in research and development to bolster our pipeline of new products and to uncover new solutions to ", "Extending Technology ", "Microsoft Unlimited Potential: Jobs, Workforce Development amp; Innovation ", "technology and business skills for entre", "preneurs, IT professionals, and students ", "to help grow their businesses ", "business applications ", "new jobs ", "to grow their careers or find a new job ", "IDC Study Findings Highlights ", "Job Creation ", "The IT industry will create nearly 6 million new jobs by the end of 2013. IT employment will grow by 3 percent a year in that period—more than three times faster than the growth of total employment. ", "New Companies ", "About 75,000 new IT companies will be formed globally between 2009 and 2013. More than 40 percent of these new companies will be in the Asia Pacific region. ", "Partner Revenue ", "For every dollar that Microsoft makes in a community, Microsoft partners make an average of $8.70. ", "Technology for Nonprofits ", "Club Tech: A program that provides technology access and skills training to kids and programmatic support and training for Club staff. The more than 3,600 Club Tech locations serve 1 million kids each year. Microsoft has donated more than $150 million in software and cash and trained more than 7,000 Club staff since the program launched. ", "Centers of Excellence: A new program launched in FY2010 that creates learning ", "Boys amp; Girls Clubs of America has been one of our signature partners for more than 10 years. Key elements of our partnership include: ", "technology access ", "and understanding ", "2,308 1,885 1,661 2,751 632 ", "P_42", "TOTAL ", "nonprofits ", "TOTAL VALUE OF SOFTWARE DONATED: $504,187,431 ", "NGO Connection Days ", "Europe ", "MEA ", "LATAM ", "N. America ", "TOTAL 2,308 ", "TOTAL 2,308", "NUMBER OF ATTENDEES ", "9,237 ", "Extending Technology ", "Technology for Humanitarian Assistance amp; Disaster Response ", "Driving global donations and awareness through social media. ", "Coordinating the response with partners— including nonprofits, intergovernmental ", "Providing information and communications technology and expertise to lead response organizations. ", "Encouraging employee giving and volunteering. ", "and private sectors. The portfolio includes: ", "Helped government and health organizations coordinate their response efforts and provide information to the public through technology Provided information to the public through multiple Microsoft communication channels, including the MSN Health H1N1 Information Center, MSNBC, MSN Home, MSN Health, and Bing ", "technology solutions ", "Developed a Haitian Creole ", "translation system to help ", "volunteers and organiza", "tions break the language ", "barrier to helping survivors ", "Operating Responsibly ", "Operating Responsibly: Goals ", "Operating Responsibly ", "Privacy amp; Freedom of ", "Worked with leading human rights groups and industry peers to promote and follow the Global Network Initiative, an ", "Expression ", "organization dedicated to advancing Internet freedom ", "Empower individuals to ", "manage their information confidently and safely ", "Supported the 2010 Data Privacy Day, working with governments, advocates and industry across the United States, Europe, and the Middle East ", "Security ", "Released the Internet Fraud Alert tool to inform financial and online companies about compromised customer accounts ", "Help ensure that data and ", "Collaborated with law enforcement agencies around the world to fight cybercrime, including filing the first lawsuits against ", "information is secure and ", "malicious advertising, supporting action against fraudulent “scareware,” and gaining court orders to disconnect domains ", "confidential ", "spreading Waledec and other botnets ", "Safety ", "Trained 50,000 people in 25 countries/regions in how to stay safe online as part of the 2009 International Safe Internet Day ", "Make computing and the ", "Internet safe for all users, ", "including children ", "Enhanced parental controls with the launch of Windows Live® Family Safety Wave 4 ", "Environment ", "Built two new data centers that use 50 percent less energy to produce the same output as those designed three years ago ", "Manage our business ", "footprint and minimize ", "the environmental impact of technology ", "Reduced carbon emissions from corporate travel by 35 percent ", "Social ", "Spent more than $1 billion with women- and minority-owned suppliers and vendors ", "Support the welfare, diver-", "sity, and development of our employees and suppliers ", "Received multiple honors for creating a diverse and inclusive workplace, such as Working Mother’s 100 Best Companies for Working Mothers and the Human Rights Campaign’s 100 Best Places to Work ", "well-governed business ", "Proactively adopted “Say on Pay” policy, giving shareholders a voice in executive compensation ", "Our People ", "89 percent of employees feel proud to work for Microsoft. ", "86 percent would recommend Microsoft as a great place to work. ", "91 percent feel that they are treated with respect and dignity by their managers. ", "83 percent feel that their work groups value diverse perspectives. ", "82 percent have positive opinions of the degree of flexibility that they are given in doing ", "About 85 percent of Microsoft employees responded to the FY2010 survey. According to its results: ", "Training amp; Development ", "Benefits ", "Employee retirement ", "P_60", "$275 million ", "accounts ", "Wellness programs ", "P_62", "$45 million ", "Life amp; disability ", "P_63", "$50 million ", "insurance programs ", "FY2010 Investment in Employee Benefits ", "Compensation ", "Representation: The diversity of our people is a critical link in our ability to anticipate and respond to the unique needs of our increasingly diverse customer base. ", "Inclusion: Cultivating a work environment where employees are truly engaged and their contributions are fully valued helps us sustain our diversity gains. ", "Market innovation: Building the best software means incorporating the talents and insights of our varied workforce into our products and services, and recognizing the needs and priorities of our diverse customer, supplier, and partner bases. ", "Microsoft strongly believes that a diverse workforce brings greater perspective, knowledge, and experience to Microsoft making it the company of choice for talent from around the world. Being able to attract, develop, and retain this talent enables us to be more innovative in the products that we develop, in the way that we solve problems, and in the way that we serve the needs of an increasingly global and diverse customer base. Our global diversity and inclusion (GDamp;I) approach has three elements: ", "Paid time off for employees to volunteer ", "Opportunities to participate in Microsoft team volunteer activities, including company-wide community volunteering days or weeks and organized group volunteer activities ", "Use of corporate facilities and resources for charitable activities ", "Board service training and placement assistance ", "Grants to organizations for which employees volunteer (U.S. only) ", "Payroll deductions and gift-matching donations (U.S. and some participating subsidiaries internationally) ", "Microsoft supports employee community involvement through: ", "Develop and highlight manager be-", "Trained almost half of our workforce on diversity and inclusion topics (in the past two years) ", "haviors that encourage inclusion to ", "strengthen teams and help achieve organizational performance ", "Held a six-week Diversity and Inclusion “Back to Basics” program for employees in Asia. The program included a series of tips to help demystify what Diversity and Inclusion is all about, as well as to help participants under-", "stand how they can bring it to life within their teams ", "Begin focus on market innovation ", "Spent more than $1 billion with women- and minority-owned suppliers, an achievement for which we were in-", "and develop a fact base to evalu", "ducted into the Billion Dollar Roundtable, an organization that recognizes companies for engaging with diverse ", "ate key opportunities to market to ", "suppliers ", "diverse populations. ", "Made products such as Microsoft Office and Windows available in 100 languages through our Local Language ", "Program ", "363,396HRS. ", "In partnership with the United Arab Emirates Ministry of Education and the Center for Women and Technology for the Arab Region, Microsoft volunteers held the region’s first DigiGirlz Day. This event introduced more than 200 high school girls to the many careers available to them in the technology sector. The attendees participated in workshops with Microsoft volunteers and used Microsoft software in hands-on projects. ", "Microsoft volunteers formed a team to take employee donations to the next level during our annual giving campaign. These volunteers created an auction tool built on the Windows Azure platform and Microsoft Silverlight to enable all employees to donate or bid on auction items. Over 700 items were contributed, raising more than $450,000 for United Way. ", "The following are examples of our employees’ efforts in FY2010. ", "Operating Responsibly ", "$84 MILLION ", "Environmental Sustainability ", "Accelerating research breakthroughs: We are researching and developing technologies to help solve environmental challenges. ", "Demonstrating responsible environmental leadership: We are focused on incorporating sustainable practices into our operations and minimizing our own environmental footprint, while growing our business. ", "energy-efficient economy. ", "Improve the energy efficiency of our products and services ", "Create new products and services to help solve environmental problems ", "Collaborate with our partners and our industry peers to increase energy efficiency ", "To deliver on this responsibility, we are working to: ", "partnership across the IT industry ", "Conserving, reusing, and recycling ", "Reducing and disposing of waste ", "Developing safe and sustainable products ", "Making environmental stewardship part of our business relationships ", "Continually improving our environmental performance ", "Demonstrating responsibility to our stakeholders ", "The following environmental principles guide Microsoft operations: ", "Data Centers ", "Travel ", "Buildings ", "An expanded green campus in Shanghai that has projected electricity savings of up to 47 million kWh. ", "New Microsoft-owned buildings designed to silver or greater LEED standards that consume 20 percent less energy than traditional buildings. ", "FY2010 progress in building energy reduction included: ", "Computer Labs ", "Recycling ", "Waste Reduction ", "Supply Chain ", "Operating Responsibly ", "Responsible Sourcing ", "Labor, Safety, and Human Rights ", "Environment ", "Diversity ", "Supplier Satisfaction ", "Operating Responsibly ", "Online Privacy and Safety ", "Products amp; Services ", "Bing Search online public service announcements: In September 2009, Microsoft, with the Federal Trade Commission and the U.S. Postal Inspection Service, launched a series of online public service announcements within our Bing search engine to alert consumers to common online scams involving issues such as credit repair, mortgage foreclosure, and fake lottery scams. ", "Operation b49: In February 2010, Microsoft obtained a court order to disable 277 domains believed to be part of the Waledac botnet, severing about 80,000 infected computers from the botnet and helping put an end to the ongoing damage this botnet was causing worldwide. The first of its kind, Operation b49 is expected to serve as a model for future actions through Project MARS (Microsoft Active Response for Security), a joint effort of the Microsoft Digital Crimes Unit and the Trustworthy Computing team to proactively combat cyber threats. ", "Law enforcement training programs in partnership with state attorneys general: ", "first lawsuits of their kind. ", "End to End Trust: End to End Trust is the Microsoft initiative to promote privacy, security, and safety by improving the trustworthiness of who or what a computer is connected to online. We engage a broad community about the technology and social policy issues involved in addressing this subject, and we provided an update on progress in March 2010 at the RSA global security conference. ", "Security Development Lifecycle and Privacy Guidelines for Developers: Microsoft ", "Microsoft has several initiatives to promote privacy, security, and trust in Microsoft products and services and in the technology ecosystem. Some of key initiatives that Microsoft has maintained over the past year include: ", "Digital Due Process: We joined with more than 30 other organizations and individuals to advocate for stronger privacy protections for communications and associated data, while preserving the legal tools necessary for law enforcement and emergency response. ", "Capacity building to fight cybercrime: ", "effort to promote a safer online environment. Changes in policy are becoming ever more important as we move more toward cloud computing. Examples of Microsoft efforts in 2010 include: ", "Aligning legal and social policies on security and privacy in a global environment: When consumers, enterprises, and governments store and manage data through online services—that is, the data is “in the cloud”—the rules for legal investigations and access to that data take on increased importance. In 2011, we will work to initiate dialogue among governments and other stakeholders to work toward achieving more alignment on legal and social policies in this area ", "LBody_60", "Collaboration on cybercrime: We will continue to also advance important technologies, enforcement actions, and collaborative efforts to combat cybercrime. This will include continued actions through Project MARS, advancement of PhotoDNA implementation, and educational and capacity-building efforts to mitigate the effectiveness of online scams. Microsoft will also host Digital Crimes Consortium 2010, an event that brings together industry, academia, law enforcement, and government from around the world to advance collaborative efforts to combat digital crime. ", "• Internet Fraud Alert: Together with the National Cyber-Forensics and Training Alliance (NCFTA), in June 2010 Microsoft helped release Internet Fraud Alert. Through a centralized alert system managed by NCFTA and powered by Microsoft technology, Internet Fraud Alert is a tool that can be used to quickly inform financial and online companies about compromised customer account credentials (for example, online usernames and passwords) or stolen credit card numbers. ", "Privacy and Data Location ", "Content Principles ", "Operations in China ", "Using Microsoft products and services to enable new forms of civic engagement. For example, Microsoft Townhall is a software suite that helps political candidates and issue advocates get online, discuss issues, drive awareness, and engage with the public. Through the CampaignReady website, we will continue to aggregate information on Townhall and provide other resources to help campaigns communicate freely and succeed. ", "Empowering governments to be more open, transparent, and connected to the citizens they serve. By building privacy and security into our cloud offerings, for example, we hope that governments will be more willing to expand the ways in which they connect ", "include: ", "Operating Responsibly ", "Governance amp; Compliance ", "Board of Directors ", "Shareholders ", "Added stronger policies to claw back executive compensation in circumstances that involve restated financial or nonfinancial metrics, even if no improper conduct is involved ", "Adopted a policy that prohibits the Microsoft Board and executive officers from hedging ", "annual meeting; almost 99 percent of the votes received supported current compensation policies ", "Continuing to find additional ways to facilitate dialogue between shareholders and the company. ", "Engaging in cross-industry dialogues, such as the Conference Board Governance Center, to help us identify and contribute to the development of best practices. ", "Examining how we manage enterprise and external risk and the evolving role and involvement of the Board in risk management. ", "in the Dodd-Frank Wall Street Reform and Consumer Protection Act. ", "Continue to act as an industry leader in corporate governance. ", "Out-performed 99 percent of Samp;P 500 companies in FY2010, as measured by a leading independent ratings firm ", "Maintain the independence of the Board of Directors ", "Retained seven independent board members out of a total of nine Board positions in FY2010 ", "Achieve greater diversity on the Board of Directors ", "Exceeded the average percentage of women Board members for Samp;P 500 companies, with 22 percent of Board members being women ", "Maintain and increase our dialogue with shareholders ", "Corresponded with representatives of our 50 largest investors (carried out by the Lead Independent Director) ", "Reached out to our largest investors and public pension funds (carried out by members of management); together these investors hold about 30 percent of shares outstanding ", "Regularly contributed to governance-focused blogs on Microsoft on the Issues ", "Adopt Say-on-Pay ", "In September 2009, our Board of Directors strengthened its commitment to strong corporate governance by adopting a Say-on-Pay policy that enables our shareholders to provide direct feedback to us on our executive compensation policies and practices. Under the policy, our shareholders were given the opportunity to cast a non-binding, advisory vote every three years on the compensation programs for our executive officers. The first vote took place at our November 2009 annual shareholders’ meeting where nearly 99% of the votes cast supported our executive compensation practices. ", "FY2010 Shareholder Data ", "Shares of Microsoft common stock outstanding (as of July 20, 2010) ", "8,653,567,331 ", "Registered holders of record of common stock (as of July 20, 2010) ", "138,568 ", "Directors elected by the vote of a majority of votes cast in uncontested elections ", "Yes ", "Antitrust Compliance ", "Responsible Competition ", "Windows Principles: For the past four years, we have followed these principles to ensure that Windows continues to foster competition and innovation in the marketplace. ", "Interoperability Principles: Two years ago, Microsoft created a set of specific Interoperability Principles. The Interoperability Principles include ensuring open connections, promoting data portability, enhancing support for industry standards, and fostering more open engagement with customers and the industry, including open source communities. ", "Microsoft has articulated its commitment to responsible competition and interoperability in a series of principles, including the following: ", "Public Policy ", "Strengthening economies: Microsoft advocates for policies that promote long-term investment in jobs and innovation, including those that promote direct government investment in IT, incentives for basic research, government choice in IT procurement, and incentives and rewards for the development and enforcement of intellectual property rights. ", "Addressing societal challenges: We engage with policymakers to highlight the critical role technology can play in improv", "Throughout this engagement, we are mindful to engage responsibly and thoughtfully—considering the effects of policy not just on our business, but also on society. As in previous years, in FY2010 Microsoft adopted and published a public policy agenda that highlights our views on key policy issues and guides our engagement. We believe that there are the three crucial areas in which government policies can help the global economy and communities worldwide realize the benefits of information technology (IT). ", "Strengthening Economies ", "Addressing Societal Challenges ", "Promoting a Healthy Online Ecosystem ", "Updating the Electronic Communications Privacy Act to better protect online communications. ", "Reforming the Computer Fraud and Abuse Act to develop stronger protections against cyber attacks. ", "government should take to prepare for the future of the cloud. These included: ", "TOTAL ", "butions to any noncandidate or nonparty political committee organized under section 527 of the Internal Revenue Code. ", "• No campaign contributions are given in anticipation of, in recognition of, or in return for an official act. ", "$100 ", "The principles are available on the Microsoft Corporate Citizenship website at http://www.microsoft.com/advocacy. These principles are reviewed regularly and were most recently updated in June 2010. ", "Political Contributions ", "887,160", "The Microsoft Political Action Committee (MSPAC) helps Microsoft employees and shareholders participate in the U.S. political ", "Lobbying ", "Association for Competitive Technology ", "Business Software Alliance ", "Information Tech Industry Council ", "US Chamber of Commerce ", "International Association of Microsoft Certified Partners Inc. ", "Washington Roundtable ", "Business Roundtable ", "The following are the trade associations to which our Corporate and Regulatory Affairs Group contributed $100,000 or more in calendar year 2010. ", "FY2010 Lobbying Expenditures Contributions ", "United States (Federal) ", "$6,750,000 ", "United States (State) ", "$2,480,000 ", "European Commission amp; ", "$1,370,000 ", "Parliament ", "process and jointly support public policy *This represents calendar year 2009 contributions positions that are important to Microsoft ", "About This Report ", "Direct dialogues with stakeholder groups, as well as with industry and issue-advocacy organizations. ", "Updates to our website and blogs to reflect ", "than 100 countries/regions also publish information that is relevant to their local stakeholders and markets. Other examples of how we continually report on and evaluate Microsoft Citizenship include: ", "OneReport® (download at http://www. microsoft.com/citizenshipreport) ", "An annual Communication of Progress to the United Nations Global Compact and on the UN Millennium Development Goals. ", "• Economic impact data and hundreds of case studies through the Microsoft Local Impact Map. ", "© 2010 Microsoft. All rights reserved. ", "2010 Corporate Citizenship Report " ]

[ "Promoting accessibility and Inclusion\nClosing the broadband gap_0\nBuilding skills for employability\nEmpowering nonprofits worldwide\nPromoting more equitable access to data_0\nDefending the democratic institutions\nMaintaining an ethical supply chain_0\nProviding disaster response and \nadvancing humanitarian partnerships\nAdvocating for immigration reform_0\nEnvironmental sustainability: \ncarbon, water, waste and ecosystems\nHarnessing AI for cultural heritage_0\nRespecting privacy_0\nAdvancing cybersecurity_0\nStrengthening digital safety\nResponsible AI\nLink_77\nLink_78\nLink_79\nLink_80\nLink_81", "Link_9\nLink_10\nLink_11\nLink_12\nLink_13\nLink_14\nLink_15\nLink_16\nLink_17", "•\tUsing Azure high-performance computing capabilities and our data scientists and Microsoft researchers to protect public health. One example of this is our expanded commitment to our AI for Health Program, dedicating an additional $20 million in funding to advance the efforts of researchers on the front lines of COVID-19. \n•\tThrough AI for Health we are focused on funding projects that use data to help public health authorities make informed and effective decisions on social distancing policies and healthcare capacity needs, help healthcare providers respond to the immediate crisis more safely and effectively, and accelerate scientific efforts to understand and treat COVID-19 and develop a vaccine. \n•\tWe have awarded more than 150 grants through AI for Health to organizations tackling the COVID-19 pandemic, including:\n•\tHelping establish and make available the COVID-19 Open Research Dataset, representing the most extensive machine-readable coronavirus literature collection available for data and text mining to date, with more than 130,000 scholarly articles. The aim is to aid research and discovery efforts for scientists, clinicians, and those working toward a solution. \n•\tMicrosoft’s subsidiary GitHub is also hosting important data on the spread of COVID-19, making it easier for researchers to use and analyze this vital data. \nWe also use this data to develop visualizations in Power BI to support policymakers around the world as well as deliver a real-time public view of the progress \nwe’re making together to heal the world.\n•\tHelping governments: Governments across the world looked to Microsoft to help them move critical workloads to the cloud so that essential teams can work remotely in a secure and productive way using Office 365 and Microsoft Teams. For instance, in Germany we activated 23,000 seats off Office 365 for the federal government in just over a week, allowing officials to collaborate on crisis response more effectively and to work remotely in a secure way.\n•\tSupporting small and medium-sized businesses: we are providing these businesses with the tools they need to work remotely and continue to serve customers. This includes providing six months free access to the business version of Office 365, which includes Teams for collaboration and video conferencing around the world.\n•\tHelping those who are impacted find new jobs: Through our global skills initiative, we’re committed to helping 25 million people acquire new digital skills needed for the changing economy. This comprehensive initiative brings together every part of our company, combining existing and new resources from LinkedIn, GitHub, and Microsoft. We are also providing $20 million in financial grants, plus technical support, to nonprofit organizations around the world that provide digital skills training to underserved communities. \n•\tWorking to get people online: As communities around the globe adapt to a world with COVID-19, access to broadband connectivity is more critical to our lives and livelihoods than ever before, providing access to education, telemedicine and commerce. Through our Airband Initiative, we are working with our Airband ISP Partners to bring expanded Wi-Fi coverage to communities quickly, deploying hundreds of Wi-Fi hotspots in public areas with ample parking, such as fairgrounds, so that community members can safely access the internet while practicing social distancing.\n•\tSupporting the nonprofits that are the first responders: The demands on nonprofits and NGOs are perhaps greater today than ever before and our Tech for Social Impact Program continues to help enable their digital transformation, allowing nonprofits to continue to serve vulnerable communities impacted by COVID-19 and helping many scale further to meet the unprecedented demands. Last year Microsoft put $1.9 billion in donated or discounted technology and services—ranging from Microsoft 365 to Power BI to Azure—in the hands of nonprofits, humanitarian organizations, and the UN and its agencies worldwide. In response to COVID-19, we committed to double our Microsoft Azure credits, increased our Windows benefits, and added new pro bono services to help critical care and first response nonprofits in their efforts to combat COVID-19. In addition, we launched free trial offers including Office 365 for Volunteers and Power Platforms to support critical COVID-19 response scenarios. \n•\tEmpowering our employees: After COVID-19 forced employees to work remotely, essentially closing down Microsoft campuses and their services, we promised to continue paying our hourly employees their regular wages—whether or not their full services are needed—creating a financial safety net for more than 4,500 hourly employees. \n•\tEmployee giving: Microsoft employees stepped up to support nonprofits across the world as part of a special two month Give Together campaign. Our employees donated over $42.8 million, inclusive of company match, to over 10,000 nonprofits focused on COVID-19 response in 5,564 cities and 76 countries. \n•\tTackling COVID-19-themed threats: A cross-company team including our Digital Crimes Unit (DCU), and threat intelligence teams are providing support to identify \nand tackle COVID-19-themed attacks on customers, including healthcare customers. As part of this Task Force, the Microsoft Digital Crimes Unit is analyzing data regarding cyberthreats associated with malware, phishing and fraud, and we have shared with the proper authorities 13,971 potentially malicious COVID-19-themed domains \nand 28,476 URLs since March so they can be taken down, and where possible, \nthe individuals behind them, can be prosecuted.\n•\tUsing our technology to keep people safe: In a single day, SmartScreen sees and processes more than 18,000 malicious COVID-19-themed URLs and IP addresses. Microsoft Office 365 Advanced Threat Protection prevented a massive phishing campaign that used a fake Office 365 sign-in page to capture credentials. Roughly 2,300 unique HTML attachments posing as COVID-19 financial compensation information documents were caught in 24 hours in this one campaign.\n•\tProtecting privacy: As people and organizations use technology to stay in new ways, or new solutions to the public health challenges are created, it is essential that we continue to ensure strong privacy protections are in place. Microsoft has advocated for federal privacy legislation in the US since 2005 and continues to push for action, including to preserve privacy while addressing COVID-19.\n•\tAdvocating for new policies: Our Digital Diplomacy Team is working to support efforts by the United Nations and others for a “digital ceasefire” in nation-state attacks on essential infrastructure including hospitals, and a longer term “Global Compact” or binding prohibition to protect healthcare institutions against nation-state cyberattacks.", "To build on this work, earlier this year, Microsoft also confirmed that we would not sell our facial recognition technology to police departments in the United States until there is a strong law, grounded in human rights, that establishes appropriate safeguards.\nOur goal is to enable responsible innovation, empower others, and foster positive impact through the use of AI. \nLink_4\ntext_0\nLink_5\ntext_1\nLink_6\ntext_2\nLink_7\ntext_3\nLink_8", "AccountGuard is a free service that notifies organizations of cyberattacks, tracking threat activity across email systems run by organizations as well as the personal accounts of its employees who opt-in. AccountGuard also includes access to cybersecurity training and, to date, we have trained more than 1,500 campaign staffers and consultants in the US on cybersecurity. \nWe have extended our AccountGuard threat notification service to political campaigns, parties and democracy-focused nonprofits in 30 countries around the world. It now protects more than 2 million accounts. Since the start of the year, we have also expanded AccountGuard to members of US Congress and their staff, state election officials, human rights organizations, journalists and media organizations, and healthcare institutions responding to the global pandemic.\nIn addition to AccountGuard, we also offer Microsoft 365 for Campaigns, bringing the advanced security capabilities of our Microsoft 365 Business offering to all federal and state political campaigns and party committees in the United States. Earlier this year, we announced international expansions to Canada and New Zealand. \nMicrosoft 365 for Campaigns brings together the productivity of Office 365, Windows 10, Enterprise Mobility and Security and collaboration solutions like Microsoft Teams. These solutions offer comprehensive email, filesharing, collaboration, cloud storage and conference calling solutions with easy-to-configure intelligent security and device management capabilities. \nIn 2019, we announced ElectionGuard, a free open-source software development kit (SDK) from our Defending Democracy Program. \nElectionGuard is accessible by design and aims to make voting more secure, verifiable and efficient anywhere it’s used in democratic nations around the world. In February 2020, we conducted a successful pilot of ElectionGuard in a local election in Fulton, Wisconsin. Most recently, we made ElectionGuard available on GitHub, so that major election technology suppliers can begin integrating ElectionGuard into their voting systems. \nWe also recently released Election Security Advisors, a service that brings Microsoft’s Detection and Response Team (DART) to election officials and political campaigns. The service offers both proactive security assessments \nand reactive incident response at an affordable price for political customers.\nAhead of the US 2020 elections, we collaborated with the Brennan Center for Justice and the Cybersecurity and Infrastructure Security Agency (CISA) to deliver cybersecurity training to nearly 400 state and local election officials across 40 US states.\nIn response to the growing challenge of disinformation online, earlier this year we announced two new technologies to help educate the public about the problem as well as new partnerships to help advance these technologies and educational efforts quickly. The first of these technologies, Microsoft Video Authenticator, is helping identify deepfakes online by analyzing a still photo or video to provide a percentage chance, or confidence score, that the media is artificially manipulated. \nThe second technology will be offered through a partnership with BBC called Project Origin and focuses on authenticating the source of a piece of media. The tool will enable a content producer to add digital hashes and certificates to content, which can then be fed into a reader to verify over time that the content is authentic and has not been manipulated. \nMedia literacy is an important component of building societal resilience to disinformation. We recently released two online quizzes to help people learn more about disinformation: “Know My News,” which focuses on understanding the credibility of news sources, and “Spot the Deepfake,” which explores synthetic media and deepfakes.", "LI_0\nLI_1\nLI_2", "NormalParagraphStyle_41\nNormalParagraphStyle_42\nNormalParagraphStyle_43\nNormalParagraphStyle_44", "Link_146\ntext_42\nLink_147\nLink_148\nLink_149\ntext_43\nLink_150\nLink_151", "While the start of a new decade typically brings hope, we quickly saw the world come to a near standstill in 2020, confronted by compounding crises: a public health and an economic crisis, persistent issues of systemic racial injustice and inequity, and the devastating effects of climate change. It is easy to fall prey to pessimism, or the sense that we individually or as a company can’t make a difference. But helplessness is corrosive to hope, and hope plus work is what is required. Amid this disruption, what’s clear is that we have a once-in-a-generation opportunity to harness digital technology to define the world we want to live in. And for that, I am optimistic.\nIt is in times like these that our ability to stay true to Microsoft’s mission and corporate purpose is of the utmost importance. As a company, we are steadfast in our mission to empower every person and every organization on \nthe planet to achieve more. Our mission is enduring. It drives who we are and everything we do, emphasizing our passion to empower both people and the lasting institutions they build. \nAs we pursue our mission, we also recognize our enormous responsibility to ensure the technology we build benefits everyone on the planet, including the planet itself. We must always use technology to help address the world’s challenges, not create new ones.\nBut the challenges facing people and the planet are complex, and no one company, sector, or country can solve them alone. That’s why we’re committed to working across the public and private sectors to foster partnerships and solutions that will have lasting impact and redefine what “achieve more” means for the world. For us, it means focusing our efforts on four key commitments:\nWhile we are proud to share our progress in these areas, we understand companies like ours that can do more, should do more. Our promise to you is this: we are, and we will. \nSatya Nadella\nChief Executive Officer", "AI for accessibility\t\nAccessibility of our products and services\nEmployees with disabilities\nAccessibility evolution model\t\nDisability answer desk\nDesigning inclusive AI\nDisability representation", "As part of our AI for Good Initiative, we are investing $25 million to support change makers through grants, investments of technology, and expertise to amplify the capabilities of people with disabilities. AI for Accessibility is about empowering individuals and teams who are passionate about making the world more inclusive and firmly rooted in the communities they intend to benefit. We want to invest in ideas that are developed by or with people with disabilities.\nWe are committed to accessibility to empower every person and organization to achieve more. We work hard to design products and services that empower the more than one billion people with disabilities, promote an inclusive workplace and culture, and enable others to advance their accessibility journey. Across our products like Windows and Microsoft 365, accessibility features are embedded to help people stay connected and get work done.\nA strong and diverse workforce must also include people with disabilities. Employees with disabilities have been the catalyst of many great Microsoft innovations such as Learning Tools, Live captioning in Teams, the Xbox Adaptive Controller, Seeing AI, and many more. Disability is a strength \nand it is imperative that we continue to actively work to hire people with disabilities and bring their expertise into our processes, products, and \nculture at every level.\nIn 2016, we rebuilt our company-wide accessibility program with a more systematic way to measure progress and set targets. This led to the development of our accessibility evolution model, which we have been using and improving for four years. It has enabled us to track progress, understand year-over-year growth by division and function and has powered our maturity. We are now sharing this model to help other organizations accelerate their accessibility journey and explore how to grow it in a sustainable way. \nOur disability answer desk has answered more than a million requests for technical support for people with disabilities. We have seen a 200% growth in calls since the start of the pandemic, which offers great feedback from the community as well as opportunity to support people with disabilities in working with technology in this remote set up. \nThe Microsoft AI for Accessibility Program co-published two papers addressing the importance of disability inclusion in AI data collections: Disability, Bias, and AI Report (with AI Now Institute at NYU) and Sign Language Recognition and Translation. \nWe encourage employees to voluntarily self-identify as having a disability, and in our Global Diversity and Inclusion Report 2020, we shared for the first time known disability representation in our US employee population. Of the 46.1% of US employees in our core Microsoft business who responded to the survey by September 1, 2020, 13.2% self-identified as having a disability. This amounts to 6.1% of all US employees in our core Microsoft business having already identified as a person with a disability.", "Eliminating the rural broadband gap in the United States \t\nExpanding access to broadband for communities of color\t\nClosing the global digital divide\nOur partnerships\nTechnology\nKeeping communities connected during the COVID-19 crisis\nClosing the gender digital divide\t", "With more than 18 million Americans lacking access to broadband, including 14 million who live in rural areas, we set ourselves an ambitious goal in 2017: to provide access to broadband to 3 million people in unserved rural areas of the United States by July 4, 2022. We’re on track to achieve our goal, and thus far have helped provide 2.1 million people with access to broadband in previously unserved rural areas of the US, and over 8.1 million people overall.\nIn June this year, we announced the expansion of our Airband Initiative beyond its rural focus to US cities, confronting some of the largest digital divides as part of our commitment to addressing racial inequity. \nIn 2019 we set a goal to extend internet access to 40 million unserved and underserved people around the globe by July 2022. We are concentrating our efforts in areas with significant underserved populations—Asia, Latin America, and Sub-Saharan Africa – that have regulatory interest in solving connectivity issues. We’re well on our way toward achieving that goal and thus far have provided access to broadband to more than 16.7 million people outside the US, 15.1 million of which live in rural areas. \nElimination of the broadband gap requires deployment of low-cost technology at scale. We support businesses working to increase internet and energy access and make it more affordable. Partnerships include co-investment and access to resources like technology, digital skills, and reseller programs. We also partner with local organizations to develop cost-effective solutions for the unique needs of their communities.\nWe help facilitate a “toolkit approach” to deliver cost-effective broadband access to rural areas which leverages a mix of technologies like TV white spaces, fixed wireless, and satellite coverage. For network providers, this technology model can reduce both the initial capital and the ongoing operating costs of broadband networks. \nAs global communities adapt to a world with COVID-19, access to broadband is even more critical to our lives and livelihoods than ever before. To keep rural communities without broadband access from being left behind, we’re donating hotspots and wireless connectivity equipment, and expanding our digital skills offerings with COVID-19-specific digital skills offerings for rural communities. We’re undertaking this work in partnership with Internet Service Providers, state and local governments, nonprofits such as the Public Library Association, the National 4-H Council, and other mission-aligned public- and private-sector entities.\nIn August, we signed an agreement with the United States Agency for International Development (USAID) and the Women’s Global Development and Prosperity Initiative to work with six Airband partners on projects serving rural areas in Columbia, Ghana, Guatemala, India, and Kenya. The goal of the partnership is to reduce the persistent gender digital divide by expanding women’s use of the internet and to help provide women new employment and economic opportunities. ", "We partner with humanitarian organizations like UNICEF with the Learning Passport to ensure children and young people on the move, or in humanitarian emergencies, can access both online and offline education to gain the skills they need to thrive, regardless of their location or where they are on their \neducation journey. \nWith UNHCR, the UN Refugee Agency, we partner to ensure digital skills and livelihood opportunities are made available for 25,000 young refugees and their host community in Kakuma Camp, Kenya, through the Connected Education Program. \nWe partner with global humanitarian organizations CARE and Mercy Corps \nto build Azure solutions for consolidation and analysis of global programs.\nIn fiscal year 2020, we contributed $42 million to six humanitarian emergencies around the world through donations, technology, services, \nand employee giving. This included responding to COVID-19, wildfires in Australia and the US, and natural disasters such as Typhoon Hagibis and Hurricane Dorian. \nWe conducted 100+ Services Disaster Response missions in 28 countries involving over 1,000 employees providing critical technology support and solutions to nonprofit, government, and international organizations. \nDuring the past year, we supported eleven organizations in deploying technology to increase the capacity of anti-human trafficking agencies \nand incorporate machine learning to assist humanitarian mapping.\nAs part of AI for Humanitarian Action we worked together with the Humanitarian OpenStreetMap Team and helped incorporate the 10 million building footprints in Uganda and Tanzania that are published by the Bing mapping team and updated their platform to support machine learning inputs.", "Enabling others\nEnabling innovation\nMicrosoft Sustainability Calculator\nEmpowering our suppliers\nInvesting in renewable energy\nReducing electronic waste in landfills\nMore sustainable business travel", "In addition to developing and deploying digital technology to help our customers, we launched the Transform to Net Zero coalition with eight industry leaders to help our customers and others to move from commitments to action, accelerating business action toward a net zero carbon economy by 2050.\nWe announced investments from our $1 billion Climate Innovation Fund: $50 million in Energy Impact Partners’ global platform for innovation of new carbon technologies; $30 million in Closed Loop Partners fund for waste innovation; and, $10 million in Emerald Technology Ventures fund to accelerate water technologies.\nWe launched the private preview of the Microsoft Sustainability Calculator to help our customers measure their carbon emissions and meet carbon reduction goals across all three scopes of emissions and are hosting additional resources to help them on their journey.\nThis year, our top suppliers reduced their collective carbon footprint by 21 million metric tons of carbon dioxide equivalents (CO2e). We updated our Supplier Code of Conduct to report greenhouse gas emissions data as a first step to help our suppliers reduce their emissions. And we built an Audit Management System using Microsoft Power BI to embed compliance and sustainability into our business. Now, we can track performance and enable continuous supply chain improvements by tracking supplier maturity in Social and Environmental Accountability. We also used the Social and Environmental Accountability Academy (SEA) platform and Microsoft Teams to train 2,234 supplier employees to improve SEA management capabilities.\nWe announced a partnership with Sol Systems, a solar energy firm, for 500 megawatts of renewable energy and investments in communities disproportionately affected by environmental challenges. \nThrough our global recycling programs, we help reduce the environmental impact caused by electronic waste, as well as protecting the data of both Microsoft and our customers, by collecting and recycling used electronics. Microsoft extends the life of used electronic equipment by partnering with Microsoft Authorized Refurbishers to rebuild and reuse devices to help people, businesses, and communities around the world embrace sustainable technology. \nWe recently announced a partnership with Alaska Airlines and SkyNRG to supply sustainable aviation fuel for three Alaska routes frequently traveled by Microsoft employees. Microsoft Teams enables employees to effectively meet with suppliers, customers, and other employees digitally, reducing carbon emissions associated with business travel. ", "Microsoft was an early proponent of The Paris Call for Trust and Security in Cyberspace, an agreement which promotes commitments and norms to protect citizens and civilian infrastructure from systemic or indiscriminate cyberattacks. To date, more than 75 countries, 700+ companies, and more \nthan 400 civil society organizations have signed on to commitments. \nWe deepened our engagement with civil society by funding the CyberPeace Institute, a Geneva based nonprofit focused on stability of cyberspace and support to communities that are most vulnerable online. We partnered with them to provide assistance to those at the frontlines of COVID-19 response in particular. \nMicrosoft also continued to drive industry action through the Cybersecurity Technology Accord, including helping recruit over 140 global technology companies to sign the Accord and advance online security and resiliency worldwide.\nMicrosoft analyzes more than 8 trillion signals daily and processes 630 billion identity transactions and scans 470 billion emails for malware and phishing each month, generating insights that fuel security innovation for our customers. We use these learnings and leverage them for increased protection against sophisticated cyber threats.\nThis year we released a new annual report, the Digital Defense Report. In analyzing cybersecurity trends over a period of time, we can help strengthen the digital defense of Microsoft and our customers, using a combination of technology, operations, legal action and policy to disrupt and deter malicious activity. \nOne example of this approach is our investment in sophisticated campaign clustering intelligence in Microsoft 365, which enables security operations center (SOC) teams to piece together these increasingly complex campaigns from their fragments. \nWe are also trying to make it more difficult for malicious actors to operate online by disrupting their activities through legal action. By proactively seizing their malicious infrastructure, the bad actors lose visibility, capability and access across a range of assets previously under their control, forcing them to rebuild. Since 2010, our Digital Crimes Unit has collaborated with law enforcement and other partners on 23 malware disruptions, resulting in over 500 million devices rescued from cybercriminals. ", "Our mission—to empower every person and every organization on the planet to achieve more—has never felt more urgent. These times demand different thinking, concerted effort, \nand collective action in partnership with our global community. \nAs our CEO Satya Nadella mentioned in his opening letter to this report, we believe \nthere are four areas where we must harness our resources if we are to continue to have \na positive impact on the future of humanity and our planet. \nIn tackling these commitments, one of our strengths as a global company is our ability to drive impact at scale through our technology and in partnership with our global community.\nWe understand that meeting our responsibility to address these challenges and drive opportunity requires a principled approach, principles that guide us over the long term while inspiring us to take action today. Throughout this report, we’ll discuss our efforts over the last fiscal year, as well as new initiatives which we have launched in the last month or so, across our company and through an array of partnerships across our community to reimagine and build a more equitable and sustainable future in these unprecedented times. \nWe know there is more work to do, that we must work faster, and that we cannot do it without our employees, customers, and partners. As always, we look forward to collaborating on this journey. \nLink_18", "This year, we will provide $20 million in cash grants to nonprofit organizations around the world that provide digital skills training for the people who need it most, including $5 million for nonprofits that provide digital and professional skills for Black and African American communities. In less than four months, the initiative has engaged more than 13 million learners.\nWe’re working with our customers to scale our skills commitment, including a partnership with Grab to help more than 500,000 of its drivers in Indonesia and Vietnam complete digital skills training to prepare them to succeed in a more digital economy. In partnership with UNICEF and UNHCR, we will support quality education, digital skills, and improved livelihoods for displaced and refugee youth, especially girls and young women, in up to 20 countries \nby 2021.\nWe advocate for policies designed to expand access to K12 computer science education for all students. In the last 12 months, 28 states have adopted 42 Microsoft-supported policies. And all 50 states now allow computer science classes to satisfy a core high school graduation requirement. \nMicrosoft Technology Education and Literacy in Schools (TEALS) connects classroom teachers with tech-industry volunteers to create inclusive, sustainable computer science programs. TEALS is powered by more than 1,500 tech volunteers from over 650 companies. 35% of TEALS students identify as female and 33% identify as racial and ethnic minorities. 85,000 students have accessed computer science courses since TEALS inception in 2009.\nOver the next five years, we will bring the TEALS Program to over 600 US high schools that serve primarily Black and African American students.", "Digital inclusion and livelihoods\nHumanitarian partnerships\nContributing to humanitarian emergencies\nCombating human-trafficking\nIncreasing capacity", "We are accelerating our cultural transformation through further investment in inclusion, defining it as a “core priority” for all employees. As part of our performance and development approach, every employee is encouraged to deepen their learning about diversity and make inclusion a daily—and personal—part of their job. \nEffective systemic change calls on employees at every level to consciously create inclusive experiences and environments for each other. Accordingly, we launched Allyship at Microsoft, a series of learning opportunities to become a more informed and effective ally through habit formation, building on ongoing conversations, insights, and failures, then recovery and learnings.\nThis year’s Microsoft Diversity and Inclusion Report came at a time marked by the ongoing COVID-19 pandemic, amplified acts of racial injustice, and the reality of global uncertainty. Navigating this has required us all to ask hard questions, listen openly to the answers, and then face the challenges head on together. It is through this process, despite the discomfort, that we grow as individuals and as an organization. The workforce data shared in the report reflect a continuous five-year trend of gains in representation of women and racial and ethnic minorities at Microsoft. But more importantly, the data show us the areas where we need to do better—specifically, that improving representation across all levels and roles must be a priority.\nWe continue to build a more inclusive environment through programs like expanded caregiver leave, unconscious bias training, a global allyship program, a commitment to ongoing dialogue, and support for our Employee Resource Groups (ERG), which included the establishment of the new Indigenous at Microsoft ERG this year.\nIn fiscal year 2020, Microsoft employees donated $221 million (inclusive of company match) to nonprofits worldwide and volunteered more than 750,000 hours in the US alone. _0", "We believe advancing opportunity starts with protecting public health, an issue that impacts every person on the planet, transcends every border, and is critical to our ability to survive and thrive. Current events have only underscored that without a healthy society, we cannot sustain a healthy economy.\nIn response to the urgent health crisis caused by the COVID-19 pandemic, we have marshaled our resources to protect public health by providing tools and technology to those on the front lines–including health care providers and researchers–to better understand the virus, its transmission, treatment and potential vaccine.\nA few of the specific actions we are taking include:\nBeyond protecting public health, we are working to sustain economic and societal activity in the short-term and promote an inclusive recovery for the long term. Our efforts include:\nIndividuals, businesses, schools, healthcare providers and governments are all using technology in new and innovative ways to respond to the COVID-19 pandemic. But we have also seen digital threats emerge and are focused on helping tackle these challenges and protect our customers by: ", "Support inclusive economic opportunity_0\nProtect fundamental rights_0\nCommit to a sustainable future_0\nEarn Trust\nEmpower our employees_0", "We have tremendous gratitude for the support we’ve had from this community, and we are committed \nto ensuring our success supports the community in return.\nLink_0\ntext\nLink_1", "•\tWe provided a no-cost $250 million line of credit to the Washington State Housing Finance Commission (WSHFC) to enable it to preserve and recycle the state’s limited tax-exempt private activity bond volume cap. The line of credit will enable the WSHFC to finance approximately 3,000 additional units of much-needed affordable housing.\n•\tWe will contribute $50 million to the Evergreen Impact Housing Fund, a newly launched partnership between Seattle Foundation and the Washington State Housing Finance Commission with support from JPMorgan Chase and Co., to promote the development of approximately 1,250 low-income housing units on the eastside of King County.\n•\tWe’ve provided a $2.5 million philanthropic grant to HomeSight’s Othello Square Project, which includes 192 units of affordable housing, early learning education, small business incubation, cultural celebration and preservation, and financial services in Seattle’s most diverse neighborhood. \n•\tWe’ve provided a $2.5 million philanthropic grant to Rise Together, a collaborative effort between six nonprofit organizations to preserve their communities by creating 400 new units of low-income housing in Seattle’s Central District, Capitol Hill and White Center neighborhoods. ", "Creating a more sustainable future requires a much deeper understanding of the species, biodiversity, and ecosystems that are vital to our health and prosperity. We have committed to working to use the architecture of the information age data, compute, algorithms, application programming interfaces, and end-user applications to accelerate a more environmentally sustainable future through a new kind of computing platform: a Planetary Computer.\nThis Planetary Computer will provide insights into critical questions that scientists, conservation organizations, and businesses already ask every day, often with no easy way to obtain a locally relevant answer. For example:\nAddressing the climate crisis is the defining issue of this decade. It requires a new depth of understanding, partnership, and transparency to make gains essential to preserving the health of our planet. \nLink_3", "LI", "LBody\nLBody_0\nLBody_1\nLBody_2", "1)\tSupport inclusive economic opportunity\n2)\tProtect fundamental rights\n3)\tCommit to a sustainable future\n4)\tEarn trust", "•\tWe must ensure that economic opportunity is inclusive—for every country, developed and developing; every community, urban and rural; every business, small and large; and every person, including the one billion plus people with disabilities.\n•\tWe unequivocally and actively support the fundamental rights of people, from defending democracy, to addressing systemic racial injustice and inequity, to protecting human rights.\n•\tWe must address climate change for a sustainable future. That’s why we’ve set ourselves ambitious climate goals and have detailed plans to achieve them, while empowering others \nto use technology to create and achieve their goals.\n•\tWe are committed to building trust in technology and its use. That’s why we take seriously our responsibility to earn trust. Without trust, none of our progress is possible.", "163,000 employees\n17 million partners\n75 million customers\n190 countries", "Providing donated and discounted technology and services\nDigital skills training for nonprofit employees\nHelping nonprofits digitally transform during COVID-19\nEmpowering social entrepreneurs", "We provided $1.9 billion in donated or discounted technology and services to 243,000 nonprofits globally—many serving on the front lines of COVID-19—with modern, secure and scalable cloud technology like Microsoft 365 and Teams, Azure, Dynamics 365 and Power Platform, and the Common Data Model for Nonprofits. As part of Microsoft’s commitment to address racial injustice and inequity, we are offering additional support to help nonprofits that work with Black and African American communities increase the impact of their mission.\nWe provide technical training and learning pathways through the \nTechnical Literacy Learning Pathways, the Microsoft Digital Skills Center for Nonprofits, and more learning paths so nonprofit employees can use technology to accelerate their missions—reaching over 50,000 learners \nto date.\nAs nonprofits faced remote work and fundraising challenges, we have helped nonprofits digitally transform for remote work, business continuity, virtual events and fundraising, and service delivery apps, allowing them to scale quickly in response to COVID-19 and other humanitarian crises.\nThis year we launched the Microsoft Global Social Entrepreneurship Program to support social impact startups with technology, connections, and grants. The program offer qualified startups access to technology, education, customers, and grants to help them build and scale their mission-driven companies. Available in 140 countries, the program seeks to support underrepresented founders with diverse perspectives and backgrounds. We also invested in X4impact, the world’s first public interest technology knowledge graph and collaboration hub. This platform aligns social entrepreneurs, grantors, technologists, and citizen developers to develop solutions for the UN Sustainable Development Goals (SDGs). ", "We are seeing the benefits that data sharing can bring to all organizations. From climate change to the COVID-19 pandemic, data plays a critical role in helping us understand and address major social and business challenges. But the reality is that data, and the AI services that it fuels, are increasingly concentrated in the hands of a small number of companies. So to ensure that every organization can fully realize the benefit of data, we need to build the tools and frameworks to share data across organizational boundaries in a way that is safe and secure.\nTo help unlock the potential of data, Microsoft’s Open Data Campaign focuses on three areas: 1) adopting a principled approach to opening data; 2) committing to deeper collaborations with others to open and share data; and, 3) making data sharing easier.\nMicrosoft has adopted five principles that will guide our contributions and commitment to trusted data collaborations: Open, Usable, Empowering, Secure, and Private. \nWe are partnering with the Open Data Institute to help develop new data collaborations and open-up the learnings around tools and processes so that everyone is able to better share, use and collaborate around data. Additionally, together with The GovLab at New York University, we co-launched the Open Data Policy Lab to support decision-makers at the local, state, and national levels to accelerate the responsible reuse and opening of data for the benefit of society.", "Social and Environmental Accountability (SEA) Academy\nWorkers’ Voice Hotline\nSupplier diversity\nZero tolerance of forced or bonded labor", "Microsoft’s SEA Academy is an online platform that provides training programs to build hardware and packaging suppliers’ capabilities to promote workers’ human rights and protect their occupational health and safety. We train suppliers’ management, workers, and third-party auditors, as well as internal Microsoft teams, to increase skills and collaboration throughout the supply chain. The SEA Academy connects capability building for suppliers with targeted program strategies developed to address specific risks in different areas of the supply chain and deliver Microsoft SEA priorities. \nThe Microsoft Workers’ Voice Hotline provides an external channel which workers in our hardware and packaging supply chain can rely on to report workplace concerns anonymously and without fear of retaliation. We use anonymous feedback from workers supplied through the Hotline to improve our Responsible Sourcing Program design.\nMicrosoft has a strong and long-standing commitment to source from historically disadvantaged groups. Our procurement team is committed to increasing our spending with diverse suppliers as a part of our Supplier Diversity Program. In the US in fiscal year 2019, Microsoft spent nearly $4 billion with diverse-owned businesses, continuing to place Microsoft in the top 20 companies for diversity spending globally.\nThe Microsoft Supplier Code of Conduct establishes our prohibition against \nall forms of forced labor in our supply chains. For our hardware and packaging supply chain, we have continued to enhance our due diligence process through supplier contracts, onboarding training, supplier assessment and audits, corrective action and verification, sub-tier management, and the Workers’ Voice Hotline. Our suppliers are required to implement compliance plans to identify and mitigate forced labor risks. Besides risk assessment and management, we build understanding and capability among our suppliers and Microsoft employees to prevent and correct forced labor issues.", "Microsoft collaborated with the estate of acclaimed Minimalist and Conceptual artist (and Microsoft Art Collection artist) Sol LeWitt in creating an exciting and immersive new app. The Sol LeWitt app will take visitors on a virtual tour of the artist’s studio and locations of LeWitt’s famous Wall Drawings in institutions throughout the world. The app can also scan a wall drawing in person and illuminate the process in its creation.\nIn France, the Musée des Plans-Reliefs brings to life the historic Mont-Saint-Michel relief map—an example of the 17th century’s most advanced mapping technology—using artificial intelligence and mixed reality. We created an experience that uses current mapping innovations to immerse viewers in \na vital piece of French history and culture.\nAs part of our ongoing efforts to preserve languages around the world, in Southwestern Mexico, we’re engaged in capturing and translating Yucatec Maya and Querétaro Otomi using AI to make them more accessible to \npeople around the world. \nIn New Zealand, with less than 3% of New Zealand residents speaking te reo Māori, Microsoft collaborated with indigenous Māori communities to help preserve and revitalize their language for future generations through Microsoft’s Neural Machine Translation (NMT) techniques and advanced machine learning.", "In 2020, Microsoft has committed to becoming a carbon negative, zero waste, water positive company that is building a new planetary computing platform to transform the way we monitor, model, and ultimately manage Earth’s natural systems. \nBy 2030 we will:\nBy 2050, we will:\nAdditionally, we will: ", "LBody_7\nLBody_8\nLBody_9\nLBody_10", "To be successful as a business in empowering everyone on the planet, we need to reflect the world we serve. This is our commitment, and we have goals and programs to improve representation in all roles \nand at all levels. \nWe expect each employee—no matter their level or function—to play an active role in creating inclusive environments where all employees can bring their authentic selves and contribute their best work. Further, we are strengthening our accountability for progress on representation by deepening our practice of evaluating each Corporate Vice-President and General Manager on their progress on diversity and inclusion when determining their impact and rewards, as well \nas promotion considerations.\nWe continually strive to improve as a company through the ideas and feedback of employees. This includes a process called Perspectives, which is built using learnings from neuroscience and social psychology and designed to improve how we ask for, share, and receive high-quality feedback to enable our growth mindset and strengthen our culture.\nWe are passionate about giving time, money, and \nskills to address the issues facing our world. It’s part \nof our culture and how we live our mission. ", "Activating allyship for greater inclusion\nDiversity representation from the top down \nSupporting our employees\nEmployee giving", "Subheader_50\nSubheader_51\nSubheader_52\nSubheader_53", "NormalParagraphStyle_32\nNormalParagraphStyle_33\nNormalParagraphStyle_34", "NormalParagraphStyle_48\nNormalParagraphStyle_49", "The COVID-19 pandemic has set off job losses that exceed the scale of the Great Recession. At Microsoft, we quickly realized we are uniquely positioned to help. In June, Microsoft, LinkedIn, and GitHub launched a global skills initiative that has collectively reached more than 13 million learners around the globe, a significant milestone towards our goal of helping 25 million learners gain more digital skills for the COVID-19 economy. People from 231 countries and territories and all 50 states have tapped into the program. To further extend the reach of our offering and help groups hardest hit by job loss, we’re continuing to expand our partnerships with nonprofits and local organizations around the globe, including Black and African American-led nonprofits in the United States, Goodwill, Afrika Tikkun in Africa, ReDI in Germany, ITPH Academy in the Netherlands, the Department for Education in the UK, and Singapore Government agencies. In addition to our $20 million investment, our global skills intiative includes these commitments:\nWe are committed to leveraging our range of resources to help people develop new digital skills and get back to work, secure a new job—or to maintain \nthe job they already have. \nLink", "In June, we made commitments to address racial injustice and inequity for the Black and African American community in the United States. We are also taking important steps \nto address the needs of other communities, including the Hispanic and Latinx community, across the company in the next five years. We are focused on multiyear, sustained \nefforts towards:\nNo company can change the world by itself. But we believe Microsoft can put the power of data, technology, and partnership to work to help improve the lives of Black and African American citizens across our country.\nLink_2", "•\tIncreasing our representation and culture of inclusion. We will build on our diversity and inclusion (DandI) momentum from the past five years by adding an additional $150 million of DandI investment, and will double the number of Black and African American people managers, senior individual contributors, and senior leaders in the United States \nby 2025.\n•\tEngaging our ecosystem. We will use our balance sheet and engagement with suppliers and partners to extend the vision for societal change throughout our ecosystem, creating new opportunities for them and the communities they serve.\n•\tStrengthening our communities. We will use the power of data, technology, and partnership to help improve the lives of Black and African American citizens across our country, including to address the safety and well-being of our own employees in the communities in which they live.", "Link_20\nLink_21\nLink_22", "Link_24\nLink_25\nLink_26", "Enable job seekers\nExpand our reach with customers and partners\nClose the computer science education gap in the US", "Link_31\nLink_32\nLink_33", "Protecting campaigns\nSecuring elections \nDefending against disinformation", "Link_36\nLink_37\nLink_38", "We have relationships with thousands of suppliers around the globe, spanning both hardware suppliers that manufacture our devices and components and indirect suppliers that provide everything from advertising services to building construction and maintenance.\nWe expect all suppliers who do business with Microsoft to uphold the human rights, labor, health and safety, environmental, and business ethics practices prescribed in our Supplier Code of Conduct. This code aligns with, and exceeds, the Responsible Business Alliance (RBA) responsible supply chain standards. Our Supplier Code of Conduct is included in all our supplier contracts, and Microsoft Social and Environmental Accountability (SEA) requirements are also incorporated into our hardware and packaging supplier contracts.\nAs a company, we will never tolerate violations of our standards and policies.", "Link_39\nLink_40\nLink_41", "Our AI for Cultural Heritage Program uses artificial intelligence to work with nonprofits, universities, and governments around the world to help preserve the languages we speak, the places where we live, and the artifacts we treasure. It builds on recent work we’ve pursued using various aspect of \nAI in each of these areas.\nWe support specific individuals and organizations through collaboration, partnership, and investment in AI technology and resources. \nTo drive this commitment forward, we have committed $10 million over five years to expand access to Microsoft Azure and AI resources. We will focus these resources on projects across four core areas: people, places, languages, and historical artifacts.", "Making art collections and archives \nmore easily accessed and enjoyed\nPreserving important monuments and sites\nRevitalizing languages through technology", "LBody_3\nLBody_4\nLBody_5", "Link_47\nLink_48\nLink_49", "Giving customers transparency and control\nPreserving privacy while addressing COVID-19\nAdvocating for privacy legislation and standards", "We were early supporters of the European Union’s General Data Protection Regulation (GDPR), and we were the first company to expand GDPR’s core rights to all our customers around the world. To date, more than 43 million people have visited our privacy tools.\nIt will be critical to preserve privacy as we develop and implement technical solutions to fight the pandemic. Earlier this year, we developed seven privacy principles for governments, public health authorities, academics, employers, and industries to consider as we collectively move forward with widespread tracking, tracing, and testing. These principles are designed to apply to any COVID-19 technological solutions that involve the collection and use of personal data such as health data, precise geolocation data, proximity or adjacency data, and identifiable contacts.\nWe believe it is time for stronger privacy laws that provide technology companies with clear guardrails on how they can use data for responsible innovation. And whether new laws are passed or not, it is essential that companies develop their own strong privacy standards and assume accountability for how they use customers’ data. We recently outlined a framework of trust—both for legislative action and corporate accountability—that begins with these four principles: Transparency, Consumer Empowerment, Corporate Responsibility, and Strong Enforcement.", "We use our voice and our resources to ensure others do not use technologies to harm our communities, our economies, and the institutions that underpin our way of life.\nOur work is grounded in partnerships with governments and others in industry and civil society to promote effective ways to manage security risks, including through effective regulation, the use of standards and best practices, and public-private partnerships. \nWe employ thousands of security experts across 77 countries to interpret and expand the insights gained from our advanced engineering. Our Digital Diplomacy team seeks to promote digital peace and to support the global development and implementation of policies across a range of topics, including cyberwarfare, critical infrastructure security, cloud security, IoT security, AI security, and others.", "Partnering with the multistakeholder community\nGenerating insights that fuel security\nPromoting community approach to cybersecurity is critical", "Microsoft is committed to delivering our services so they are tools of empowerment for people and do \nnot contribute, however indirectly, \nto causing harm. \nWe have a responsibility to manage our services in a way that respects timeless human values, like privacy and freedom of expression. We are committed to lending our knowledge and experience to address illegal and harmful content, like child sexual exploitation, abuse imagery, and terrorist and violent extremist content.\nOur collaborations across the technology sector and with policy makers and experts from civil society and academia are central to any progress we can make as a company. ", "Countering online child sexual exploitation and abuse\nCombating terrorism and violent extremism online\nPromoting digital civility", "We remain resolute in our commitment to countering online child sexual exploitation and abuse. In line with that commitment, this year we have undertaken a range of activities built on new principles, partnerships, \nand technology approaches. A few examples of these activities include:\nWe continue to take steps to eliminate terrorist and violent extremist content when it appears on our hosted consumer services. We invest in collaborative efforts and partnerships with others who are working to stem the broader \nissue of violent extremism, including being a leading proponent for the creation of The Christchurch Call, an initiative that brings together members of the technology sector, governments, and civil society to prevent technology from being used to promote terrorism and violent extremism online. We were also one of the founding member companies of the Global Internet Forum to Counter Terrorism (GIFCT), whose mission is to prevent terrorists and violent extremists from exploiting digital platforms.\nUnderstanding the essential steps of internet safety to help people protect their devices, information, and families when they go online begins with research. As part of the Microsoft Digital Civility Index (DCI), in our 2020 \nDigital Civility research we asked more than 12,500 teens and adults in 25 countries to predict the tone and tenor of online behavior in the next decade. The underlining goal of this research is to shine a spotlight on perceived online risks and to encourage people to adopt more respectful online habits and practices. And while the DCI stands at its lowest level since the survey began in 2016, we are investing in ways to realize some of the positive findings in the research, including continuing to highlight our Digital Civility Challenge which promotes the adoption of positive online habits and practices through common-sense principles for safer, healthier, and more respectful online interactions. ", "•\tEndorsing the Voluntary Principles to Counter Online Child Sexual Exploitation and Abuse through our active participation in groups such as WePROTECT Global Alliance and the Technology Coalition with whom we continue to develop new technology and partnerships to support this collective work.\n•\tJoining leading technology companies in announcing Project Protect, a strategic vision for the future of the Technology Coalition focusing on technology innovation, collective action, independent research, information and knowledge sharing, transparency, and accountability to combat Online Child Sexual Exploitation and Abuse.\n•\tWe released a grooming-detection technique, by which online predators attempting to lure children for sexual purposes can be detected, addressed, and reported. Developed in collaboration with The Meet Group, Roblox, and Kik and Thorn, this technique builds off Microsoft-patented technology and is freely available to qualified online service companies that \noffer a chat function. ", "Protecting public health during the pandemic\nSupporting the economy and recovery\nProtecting customers from online threats", "•\tDuke University, selected through the White House High Performance Computing Consortium, whose research team is addressing the short supply of ventilators by developing a new technique that allows them to be split and used with multiple patients.\n•\tCOVID-19 Moonshot project by UCB that is leveraging Azure to screen targets and potential entities for research.\n•\tFolding@home, a global organization using distributed computing to research COVID-19 proteins and inform new therapies.", "Link_58\ntext_4\nLink_59", "NormalParagraphStyle_35\nNormalParagraphStyle_36\nNormalParagraphStyle_37", "NormalParagraphStyle_38\nNormalParagraphStyle_39\nNormalParagraphStyle_40", "https://www.microsoft.com/en-us/corporate-responsibility/empowering-employees\nLink_64\nLink_65", "https://www.microsoft.com/en-us/diversity/_0\nLink_66\nLink_67", "NormalParagraphStyle_45\nNormalParagraphStyle_46\nNormalParagraphStyle_47", "NormalParagraphStyle_50\nNormalParagraphStyle_51", "NormalParagraphStyle_52\nNormalParagraphStyle_53\nNormalParagraphStyle_54", "NormalParagraphStyle_55\nNormalParagraphStyle_56", "•\tMake data and analytics available to governments around the world so they can better assess local economic needs. \n•\tUse our voice to advocate for public policy that will advance skilling opportunities needed in the changed economy. ", "principles\nTransparency Note", "all for government regulations\napplaud Washington State", "Reimagining a better future together\n2020 Microsoft Corporate Social Responsibility Report", "03\nLetter from Satya Nadella", "04\nOur purpose ", "0\nSupport inclusive economic opportunity ", "1\nProtect fundamental rights ", "21\nCommit to a sustainable future ", "2\nEarn trust", "2_0\nEmpower our employees ", "3\nOur response to COVID-19", "3_0\nSASB Materiality Reference Index", "For the next 10 years, the United Nations (UN) Sustainable Development Goals (SDGs) represent a shared and universal commitment to deliver on ambitious global goals for people and the planet. Each SDG presents challenges bigger than any one organization—or even one sector of society—can accomplish alone. Microsoft believes in its shared responsibility as a business to apply the unique assets that a technology company of our scope and scale has toward the global effort needed to achieve the SDGs. We are committed to working with governments, civil society, and other companies to achieve more progress together. \nLink_19", "Link_27\nLink_28", "Link_29\nLink_30", "Data collaborations\nUnlocking data while respecting privacy", "Microsoft wants to help close the “data divide” by ensuring every person and organization can benefit from the data economy. Through the Open Data Campaign we will develop 20 new data collaborations by 2022, partnering with nonprofits, universities, companies and governments to collaborate around data to address major societal and business challenges.\nIn collaboration with Harvard, we developed and released SmartNoise, a first-of-its-kind open source platform for differential privacy. Differential privacy makes it possible to extract useful insights from datasets, while safeguarding the privacy of individuals. These Insights have the potential to help solve the most difficult societal problems in health, the environment, economics, and other areas. ", "Link_42\nLink_43", "We believe the diversity of our employees is one of our greatest strengths and that a healthy immigration policy is important from a humanitarian perspective and as a vital engine of the nation’s economic growth.\nIn the US, Microsoft continues to support legislation to reform the immigration system so our nation can attract and retain skilled talent to help grow the US economy, including proposals that eliminate per-country limits on immigration, increase the number of employment-based green cards given in the US, improve security at the border, enhance the integrity of our nation’s immigration programs, and provide a path to citizenship for eligible individuals under the Deferred Action for Childhood Arrivals \n(DACA) Program. ", "Link_44\nLink_45", "Link_50\nLink_51", "Link_52\nLink_53", "Link_54\nLink_55", "Link_56\nLink_57", "A global company helping address a global crisis. Response to COVID-19 is unique—strong partnership component\nWe are focused on providing the critical digital support needed for the world’s first responders.", "A global company helping address a global crisis. Response to COVID-19 is unique—strong partnership component_0\nWe are committed to helping governments and communities use digital technology and the power of data to respond to the immediate crisis and accelerate the recovery. ", "A global company helping address a global crisis. Response to COVID-19 is unique—strong partnership component_1\nWe are providing strong protection for cybersecurity, privacy, and digital safety throughout this crisis.", "Link_60\nLink_61", "Link_69\ntext_5", "Link_70\nLink_71", "Link_72\nLink_73", "Link_75\nLink_76", "Our Global Skills Initiative has reached\n13 million learners—and counting", "Learn more about our Global Skills Initiative", "source", "Few corners of our world escape the increasing challenges of economic disparity, including the Puget Sound region, home to Microsoft’s headquarters. Since 2011, jobs in the Puget Sound region have grown 21%, while growth in housing availability has lagged at 13%. This gap has caused the median home price to surge 96% in the past eight years, making the Greater Seattle area the sixth most expensive region in the US (\n", "Learn more about Microsoft’s affordable housing commitment", "Learn more about our commitment to address racial injustice", "Our Planetary Computer will offer insights to help save our world.", "Learn more about the Planetary Computer", "Understanding the tree density, land use, and size of forests has implications for biodiversity conservation and climate change mitigation. The Planetary Computer will provide satellite imagery, \nstate-of-the-art machine learning tools, and user-contributed data about forest boundaries from \nwhich forest managers will have an integrated view of forest health.", "Urban planners and farmers depend on forecasts of water availability and flood risks to make educated guesses about land management. The Planetary Computer will provide satellite data, local measurements of streams and groundwater, and predictive algorithms that will empower land planners and farmers to make data driven decisions about water resources.", "Wildlife conservation organizations depend on their own local surveys, global views of wildlife populations, and suitable habitats for wildlife. The Planetary Computer will combine information about terrain types and ecosystems with the best available data about where species live, enabling a global community of wildlife biologists to benefit from each other’s data.", "Combating climate change requires organizations to measure and manage natural resources that sequester carbon, like trees, grasslands, and soil. The Planetary Computer will combine satellite imagery with AI to provide up-to-date information about ecosystems and provide a platform for leveraging predictive models to estimate global carbon stocks and inform decisions about land use that impact\nour ability to address climate change.", "AI principles into practices,", "As artificial intelligence becomes more common in our everyday lives, it’s important that we continue our work to maximize its benefits and minimize any risks. Microsoft’s Office of Responsible AI is creating the internal governance across our engineering and product teams needed to turn our \n", "For example, facial recognition can help find a missing child or speed up border crossings, but misuse or bias in datasets can also lead to human rights abuses or civil liberties violations. That’s why Microsoft established our own internal \n", "On the public policy front, Microsoft’s c\n", "Responsible AI Resources Center", "We know how challenging this work can be, and we’re committed to sharing what we learn so that others can adopt the practices, tools, and guidelines that we develop. We launched a \n", "Learn more about our Facial Recognition principles", "2020 Microsoft Corporate Social Responsibility Report", "A letter from Satya Nadella", "By any measure we are living through extraordinary times", "Learn more about our approach to corporate social responsibility and reporting ", "Learn about Microsoft and the United Nations sustainability goals", "Our\ncommunity", "2020 Microsoft Corporate Social Responsibility Report", "Impact at a glance", "Support inclusive economic opportunity", "200% growth", "Our Disability Answer Desk has answered more than a million requests for technical support for people with disabilities and seen a 200% growth in calls since the start of the pandemic, which offers great feedback from the community as well as the opportunity to support people with disabilities in working with technology in this remote set up. ", "17.2M people ", "In the three years since its launch, the Microsoft Airband Initiative has helped provide access to broadband for 2.1 million people in the US who live in previously unserved rural areas. Outside of the country, we’ve done the same with connectivity for 15.1 million people living in rural areas.", "13M learners\nSince launching our Global Skills Initiative in June, Microsoft, LinkedIn, and GitHub have collectively reached more than 13 million learners around the globe, a significant milestone towards our goal of reaching 25 million learners by early 2021. People from 231 countries and territories and all 50 US states have learned through the program.", "$1.9 billion", "In fiscal year 2020, Microsoft provided $1.9 billion in donated or discounted products and services to help 243K nonprofits globally better serve their communities.", "20 new collaborations", "To help close the “data divide” we will develop 20 new data collaborations by 2022, partnering with nonprofits, universities, companies and governments to collaborate around data to address major societal and business challenges.", "$750 million", "We’ve pledged $750 million in loans and grants to accelerate the construction of more affordable housing in the Puget Sound region. In total this year, we allocated over $380 million to support the preservation or creation of over 6,500 affordable housing units in the greater Seattle area. ", "Protect fundamental rights", "29 countries", "We made our Microsoft AccountGuard threat notification service available at no cost to healthcare providers on the front lines as well as human rights and humanitarian organizations. Both AccountGuard for Healthcare and AccountGuard for Human Rights Organizations will initially be available to organizations in the 29 countries where we already offer AccountGuard.", "Nearly $4 billion", "We have contributed nearly $4 billion with diverse-owned businesses, continuing to place Microsoft in the top 20 companies for diversity spending globally.", "$42 million", "We contributed $42 million to six humanitarian emergencies around the world through donations, technology, services, and employee giving. We also conducted 100+ Services Disaster Response missions in 28 countries involving over 1,000 employees providing critical technology support and solutions to nonprofit, government, and international organizations. ", "1 company", "Microsoft was the only company to file a lawsuit to object to the rescission of the DACA Program in 2017, a case that went all the way to the Supreme Court. ", "Commit to a sustainable future", "Earn trust", "Empower our employees", "Preserve language", "As part of our ongoing efforts to preserve languages around the world, in Southwestern Mexico we’re engaged in capturing and translating Yucatec Maya and Querétaro Otomi, using AI to make them more accessible to people around the world. ", "750,000 hours", "In fiscal year 2020, Microsoft employees donated $221 million (inclusive of company match) to nonprofits worldwide and volunteered more than 750,000 hours in the US alone. ", "21M metric tons", "This year, our top suppliers reduced their collective carbon footprint by 21 million metric tons of carbon dioxide equivalents (CO2e).", "7 privacy principles", "We have developed 7 privacy principles for governments, public health authorities, academics, employers, and industries to consider as we collectively move forward with widespread COVID-19 tracking, tracing, and testing. ", "23 malware disruptions", "Since 2010, our Digital Crimes Unit has collaborated with law enforcement and other partners on 23 malware disruptions, resulting in over 500 million devices rescued from cybercriminals.", "2020 Microsoft Corporate Social Responsibility Report", "Support inclusive economic opportunity", "We believe that economic opportunity can and must be inclusive. That’s why we invest to help individuals, organizations, communities, and countries access pathways to growth and opportunity. When each of us succeeds, we all succeed.  ", "Promoting accessibility and inclusion", "With more than one billion people with disabilities in the world, we believe accessibility and inclusion are essential to delivering on our mission.", "Our commitments \nand approach", "Technology can empower people to achieve more, help strengthen educational opportunities, and make the workplace more inclusive for people with disabilities. We are on a journey and continue to learn and grow as we move forward. We hope that by sharing what we’ve learned, other organizations can build out and accelerate their disability inclusion accessibility programs, hire great talent, and reduce the unemployment rate for people with disabilities. Our commitment to accessibility and disability inclusion is about more than the products and services we create; it extends to the culture of our workplace and the fabric of our company—from hiring people with disabilities, leaning into the principles of inclusive design to creating inclusive marketing, to building an accessible, modern workplace that empowers all employees.", "Highlights", "Resources", "Learn about our commitments to accessibility", "Learn about our employees with disabilities", "Learn about how grantees are making impact", "Link_23", "Learn more", "2020 Microsoft Corporate Social Responsibility Report", "Closing the broadband gap", "Broadband is the electricity of the 21st century, but more than 18 million Americans don’t have access to broadband, including 14 million who live in rural areas. 49% of the global population doesn’t even have access to the internet. This leaves billions of people on the wrong side of the opportunity gap, meaning existing inequalities, poverty, and insecurity will persist and become more difficult to address.", "Our commitments \nand approach", "Through the Microsoft Airband Initiative, we seek to make affordable broadband access a reality for unserved communities around the world. The Airband Initiative also aims to help the communities we serve to digitally transform in the areas of healthcare, agriculture, education, and small business enablement or rural entrepreneurship.", "Highlights", "Resources", "Learn about the Microsoft Airband Initiative", "Learn about Airband partnerships", "Learn about technology models", "2020 Microsoft Corporate Social Responsibility Report", "Building skills for employability ", "We must ensure every person has access to the technology, skills, and opportunity to pursue in-demand jobs in the changing economy. ", "Highlights", "Our commitments \nand approach", "We have a long-standing commitment to closing the skills gap. But COVID-19 has only widened this gap: accelerating digital transformation as companies race to change the way they work to respond to and recover from the pandemic. It is why we are accelerating our investments in programs and partnerships that build foundational digital skills and provide access to high-quality, inclusive computing and computer science training and education.", "Resources", "Learn about our resources for job seekers", "Learn about our community skills grants for\nnonprofits serving Black communities", "Learning the skills for in-demand roles: A Global Skills Initiative", "2020 Microsoft Corporate Social Responsibility Report", "Empowering nonprofits worldwide ", "Technology can enable nonprofit, humanitarian organizations and social entrepreneurs to be more productive, more innovative, and ultimately, to drive greater societal impact. ", "Our commitments \nand approach", "Microsoft is committed to delivering accessible, affordable, and relevant technology solutions and services to nonprofits, humanitarian organizations, and the UN and its agencies worldwide. Through Microsoft’s Tech for Social Impact, we provide Microsoft cloud technology as well as first-party sector-specific solutions to meet the unique needs of nonprofits. The Microsoft Partner ecosystem provides further innovation and scale, helping nonprofits of all sizes with sector specific solutions, implementation and migration services, and licensing support. Tech for Social Impact runs as a social investment model, where incremental revenue is reinvested in nonprofit sector innovation and social good causes, including affordable housing, skills and employability programs, and technology donations.", "Highlights", "Resources", "Learn about nonprofit offers from Microsoft", "See how we are providing more cloud and tech support for nonprofits on the frontline of COVID-19", "2020 Microsoft Corporate Social Responsibility Report", "Promoting more equitable access to data", "We believe everyone can benefit from opening, sharing, and collaborating around data to make better decisions and improve efficiency.", "Our commitments and approach", "Highlights", "Resources", "Learn about our Open Data Campaign", "Learn about our data collaborations", "Learn about our collaboration with Harvard", "Link_34", "Learn more", "Link_35", "Learn more", "2020 Microsoft Corporate Social Responsibility Report", "In our hometown: Increasing our commitment to affordable housing", "2020 Microsoft Corporate Social Responsibility Report", "Protect\nfundamental rights", "Whether it’s public health, environmental sustainability, cybersecurity, terrorist content online or the UN’s Sustainable Development Goals, we at Microsoft have found that progress requires two elements. We need both international cooperation among governments and inclusive initiatives that bring in civil society and private sector organizations to collaborate on solutions.", "Defending democratic institutions\t", "We are using our voice and our resources to ensure others do not use technology to harm our communities, our economies, and the institutions that underpin our way of life.", "Our commitments \nand approach", "We believe technology companies have a responsibility to help protect our democratic processes and institutions. This responsibility requires constant vigilance and an effective collective defense against cyber-based attacks on candidates and voting systems, and disinformation campaigns against the public itself. Our Defending Democracy Program helps safeguard democratic processes globally from cyber-enabled threats by working with stakeholders spanning governments, non-government organizations, academics, political committees, and parties, political campaigns, and industry to protect elections around the world. The program works closely with product groups and services across Microsoft, coordinating efforts to improve the cyber-resilience of our election-related customers as well as other important stakeholders. In addition, the Defending Democracy Program provides trainings, programs, and technology to democratic stakeholders\nin over half of the world’s democracies.", "Highlights", "Resources", "Learn about our Defending Democracy Program", "Learn about AccountGuard", "Learn about Microsoft 365 for Campaigns", "2020 Microsoft Corporate Social Responsibility Report", "Maintaining an ethical supply chain", "When it comes to labor and human rights, we leave no doubt as to the standards we expect. Our standards apply to all our suppliers, including those at the farthest reaches of our supply chain.", "Highlights", "Our commitments \nand approach", "Resources", "Read our Fiscal year 2020 Devices Sustainability Report", "Read our commitment to anti-corruption and anti-bribery", "Read about our anti-corruption policy", "2020 Microsoft Corporate Social Responsibility Report", "Providing disaster response and advancing humanitarian partnerships", "Our vision is to empower humanitarian organizations and crisis-affected communities to realize the promise and potential of technology.", "Our commitments \nand approach", "We seek to help organizations leverage technology to scale the work they do and reach more of the beneficiaries they are trying to serve. Microsoft is uniquely positioned to support humanitarian organizations in their digital transformations to improve delivery of humanitarian response and development programming, creating greater resiliency in an increasingly challenging social and economic environment. We are also committed \nto mobilizing our digital skills and digital inclusion initiatives to crisis-affected communities.", "Highlights", "Resources", "Learn about how we support humanitarian action", "Read how we are expanding access and eligibility\nto bolster impact through AI for Humanitarian Action", "2020 Microsoft Corporate Social Responsibility Report", "Advocating for immigration reform", "A well-functioning immigration system is an integral part of our nation’s growth, development, and strength.", "Our commitments \nand approach", "Highlights", "Microsoft was the only company to file a lawsuit to object to the rescission of the DACA Program in 2017, a case that ultimately went to the Supreme Court. Microsoft joined the lawsuit based on concern about the decision’s business and humanitarian impacts, including on our employees who are DACA registrants. Alongside amicus briefs filed by hundreds of other businesses, educational institutions, religious organizations, and municipalities, we all stood together to underscore that DACA registrants are \nimportant to the economy and the country. ", "Resources", "Learn about our approach to immigration reform ", "Learn about our contest of the DACA rescission", "2020 Microsoft Corporate Social Responsibility Report", "Harnessing AI for cultural heritage", "It’s our business to advance technology, and we believe technology should respect and help protect the world’s timeless values. That conviction has led us to leverage the power of AI to empower people and organizations dedicated to the preservation and enrichment of cultural heritage.", "Our commitments \nand approach", "Highlights", "Resources", "Link_46", "Learn about AI for Cultural Heritage", "2020 Microsoft Corporate Social Responsibility Report", "Addressing racial injustice", "2020 Microsoft Corporate Social Responsibility Report", "Commit to a\nsustainable future", "Addressing the climate crisis is good for the planet and good for Microsoft. That’s why we’re innovating and empowering customers, partners, NGOs, and governments around the world with technology to help them set and achieve their own climate goals.", "Environmental sustainability: carbon, water, waste, and ecosystems", "We must address climate change for a more sustainable future.", "Our commitments and approach", "Be carbon negative by reducing our carbon emissions by half and removing the rest from the environment, including for our supply and value chains. ", "Be water positive for our direct operations, meaning we will replenish more water than we use.", "Be zero waste for direct operations and products, and eliminate single use plastics in packaging by 2025.", "LBody_6", "Remove from the environment all the carbon the company has emitted directly or by electrical consumption since its founding.", "Protect more land than we use for our direct operations by 2025 and we will also build a new Planetary Computing platform to help monitor, model, and manage Earth’s natural systems.", "Continue to invest our $1 billion Climate Innovation Fund to accelerate the development of climate technologies.", "Continue our commitment in Microsoft devices, cloud hardware, and procurement to operate as an industry-leading Responsible Sourcing Program and deepen engagement with suppliers to ensure our emissions reductions and water targets are met.", "Use our voice to advocate for public policy initiatives that address climate change.", "Highlights", "Resources", "Read our ambitious commitments", "Learn about our Climate Innovation Fund", "Learn about our renewable energy \npartnership with Sol Systems ", "2020 Microsoft Corporate Social Responsibility Report", "Putting data and digital technology\nto work: The Planetary Computer", "2020 Microsoft Corporate Social Responsibility Report", "Earn\ntrust", "We are optimistic about the benefits of technology, but also clear-eyed about the challenges. You can’t drive positive impact with technology if people don’t trust the technologies or the companies behind them. That’s why we take seriously our responsibility to earn trust. Without it, progress is not possible. ", "Respecting privacy", "We recognize privacy as a fundamental human right and work to preserve our customers’ ability to control their data and make informed choices to protect their privacy. ", "Our commitments \nand approach", "Our approach to privacy and data protection is grounded in our belief that customers own their own data. Our privacy principles include a commitment to be transparent in our privacy practices, to offer meaningful privacy choices, and to responsibly manage the data we store and process. In addition, we continue to advocate for strong privacy laws both to ensure individuals are empowered with control over their data and transparency in how their data is used, and to require companies to be accountable and responsible for their use of personal data. We are committed to working collaboratively across industry, governments, educational institutions, and NGOs in the fight to protect privacy and cybersecurity for individuals and businesses around the globe.", "Highlights", "Resources", "Learn about our seven privacy principles", "Learn about our approach\nto privacy and an equitable recovery", "2020 Microsoft Corporate Social Responsibility Report", "Advancing cybersecurity", "Cybersecurity is a central challenge in the digital age, and we are committed to partnering across sectors to address changing digital threats.", "Our commitments \nand approach", "Highlights", "Resources", "Learn about the Cybersecurity Tech Accord", "Learn about the CyberPeace Institute", "2020 Microsoft Corporate Social Responsibility Report", "Strengthening digital safety ", "Digital safety is a whole of society problem requiring a whole of society approach.", "Our commitments \nand approach", "Highlights", "Resources", "Learn about the Voluntary Principles to Counter Online Child Sexual Exploitation and Abuse", "Learn about the Christchurch Call to Action", "2020 Microsoft Corporate Social Responsibility Report", "Responsible AI: Putting our principles into practice", "2020 Microsoft Corporate Social Responsibility Report", "Empower\nour employees", "We foster a workplace where everyone can use the power of the Microsoft platform to pursue their passions, fulfill their purpose, and empower others. Each day, we show up to make a difference in the world.", "Empower our employees", "Our employees are essential to fulfilling our company’s mission, and we continually strive to improve as a company through having a diverse \nand inclusive workforce. ", "Our commitments and approach", "Highlights", "Resources", "Read our Diversity and Inclusion Report", "Read about activating allyship for greater inclusion", "2020 Microsoft Corporate Social Responsibility Report", "Our response\nto COVID-19", "Our partners and grantees make progress against COVID-19 every day, but there is still much to do to fight the disease. The great work being done by our partners and grantees emboldens us to continue working tirelessly against COVID-19, while also supporting and helping those on the front lines.", "2020 Microsoft Corporate Social Responsibility Report", "2020 Microsoft Corporate Social Responsibility Report", "2020 Microsoft Corporate Social Responsibility Report", "Conclusion", "CSR Reports Hub", "Transparency is foundational to trust, so we provide clear information on how we run our business and how we work with customers and partners. You can find details on our \n", "Learn more about our approach to corporate social responsibility and reporting", "SASB Materiality Reference Index", "Dimension", "General issue category", "Software and IT Services", "Hardware", "Environment", "Energy management", "https://www.microsoft.com/en-us/corporate-responsibility/sustainability", "CDP Climate Change Response 20", "Social capital", "Customer privacy", "Link_62", "https://www.microsoft.com/en-us/corporate-responsibility/privacy", "Data security", "https://www.microsoft.com/en-us/security", "Link_63", "https://www.microsoft.com/en-us/security", "Human capital", "Employee engagement, \ndiversity and inclusion", "https://www.microsoft.com/en-us/diversity/", "https://news.microsoft.com/hitrefresh/", "https://www.microsoft.com/en-us/corporate-responsibility/empowering-employees", "https://news.microsoft.com/hitrefresh/", "Business model \nand innovation", "Product design and lifecycle management", "Link_68", "Devices Sustainability Report", "upply chain management", "S\n", "Devices Sustainability Report", "https://www.microsoft.com/en-us/corporate-responsibility/responsible-sourcing", "Materials sourcing and efficiency", "Devices Sustainability Report", "https://www.microsoft.com/en-us/corporate-responsibility/responsible-sourcing", "Leadership and governance", "Competitive behavior", "Link_74", "https://www.microsoft.com/en-us/legal/compliance/sbc/", "Systematic risk management", "Shareholder Letter 2020", "Proxy Statement 2020", "2020 Microsoft Corporate Social Responsibility Report", "More resources", "Learn about how AI is helping revitalize a language", "Voluntary Principles to Counter Online\nChild Sexual Exploitation and Abuse", "Christchurch Call to Action", "2020 Digital Civility Report", "Digital Civility Challenge", "ur commitments to Accessibility", "O\n", "ur employees with disabilities", "O\n", "ow grantees are making impact", "H\n", "ow we work with designers and \nengineers to build inclusive products", "H\n", "Accessibility Evolution Model", "Disability Answer Desk and resources", "ow Microsoft is shrinking the data desert", "H\n", "Airband partnerships", "echnology models", "T\n", "ur work during COVID-19", "O\n", "nnual update on connecting rural America", "A\n", "ur digital gender equity partnership", "O\n", "ur resources for job seekers", "O\n", "ur community skills grants for nonprofits\nserving Black and African American communities", "O\n", "ur partnership with Grab", "O\n", "ur efforts to increase access to computer science", "O\n", "Microsoft TEALS", "Tech for Social Impact", "roviding more cloud and tech support \nfor nonprofits on COVID-19 frontline", "P\n", "Global Social Entrepreneurship Program", "Open Data Campaign", "ur data collaborations", "O\n", "ur collaboration with Harvard", "O\n", "Defending Democracy Program", "ElectionGuard", "AccountGuard", "Microsoft 365 for Campaigns", "ur work combatting disinformation", "O\n", "Take the Spot the Deepfake Quiz", "Take the Know My News Quiz", "2020 Devices Sustainability Report", "FY \n", "ur commitment to anti-corruption and anti-bribery", "O\n", "ur anti-corruption policy", "O\n", "ur Supplier Code of Training", "O\n", "upplier diversity at Microsoft", "S\n", "ow we support humanitarian action", "H\n", "xpanding access and eligibility to bolster impact\nthrough AI for Humanitarian Action", "E\n", "ur approach to immigration reform ", "O\n", "ur contest of the DACA rescission", "O\n", "he oral arguments at the Supreme Court", "T\n", "ur ambitious commitments", "O\n", "Climate Innovation Fund", "ur renewable energy partnership with Sol Systems", "O\n", "ur partnership with Alaska Airlines on sustainable aviation fuel", "O\n", "Transform to Net Zero coalition", "Microsoft Sustainability Calculator", "Other resources", "Devices Sustainability Report", "Environmental Compliance for Devices and Packaging", "ur seven privacy principles", "O\n", "ur approach to privacy and an equitable recovery", "O\n", "Cybersecurity Tech Accord", "CyberPeace Institute", "Cyber Defense Operations Center", "Digital Defense Report", "rotecting people from digital threats", "P\n", "Critical steps for securing cyberspace", "Combat ransomware ahead of US elections", "Cyberattacks targeting US elections", "Legal action against COVID-10 cybercrime", "Diversity and Inclusion Report", "tivating allyship for greater inclusion", "Ac\n", "ur global Diversity and Inclusion commitments", "O\n", "ur inclusive approach to hiring", "O\n", "AI principles into practices", "Putting \n", "Our responsible AI principles", "Transparency Note", "all for government regulations", "C\n", "Facial recognition progress in Washington state", "Responsible AI Resources Center", "2020 Microsoft Corporate Social Responsibility Report", "Microsoft.com/CSR", "2020 Microsoft Corporate Social Responsibility Report" ]

[ "H2\nNormalParagraphStyle\nNormalParagraphStyle_0\nNormalParagraphStyle_1\nNormalParagraphStyle_2\nNormalParagraphStyle_3\nNormalParagraphStyle_4\nNormalParagraphStyle_5\nNormalParagraphStyle_6\nNormalParagraphStyle_7\nNormalParagraphStyle_8\nNormalParagraphStyle_9\nNormalParagraphStyle_10\nNormalParagraphStyle_11\nNormalParagraphStyle_12\nNormalParagraphStyle_13\nNormalParagraphStyle_14\nNormalParagraphStyle_15\nH2_0", "Explore key resources to learn more about our work in privacy and data security.\n\n\nMicrosoft privacy\nAccess more information on our privacy principles, the common categories of data we collect, and additional links to product and service-specific privacy information and controls.\nPrivacy statement\nThe Microsoft privacy statement explains what personal data we collect from users and how we use it.\nMicrosoft Trust Center\nThe Trust Center provides enterprise and business customers information on how Microsoft protects their data across our cloud services, including how we can help organizations comply with GDPR.\nA Cloud for Global Good\nOur policy roadmap covers a range of policy areas and provides a comprehensive set of recommendations and considerations mapped to a trusted, responsible, and inclusive cloud.\nSecurity_0\nFrom individuals to enterprise businesses, we’re committed to helping our customers get secure—and stay secure—in a world of persistent cyberthreats.\nSecurity blog\nThe Microsoft Secure blog is the place to go for in-depth articles on our products and services, as well as tips and recommendations for improving security in your organization.\nLink_29\nLink_30\nLink_31\nLink_32\nLink_33\nLink_34", "Explore key resources to learn more about our Global Human Rights Statement, our salient human rights issues, and our bi-annual digital trust reports.\nGlobal Human Rights Statement\nWe have committed to ensuring that our employees, partners, and suppliers respect and promote human rights, and that technology plays a positive role across the globe.\nAccessibility_0\nWe create and deliver technology that is accessible and functional for people of all abilities.\nFreedom of expression and privacy\nWe respect peoples’ right to freedom of expression and their right to freedom from arbitrary and unlawful interference with privacy online.\nOnline safety\nWe provide tools and resources to protect the online safety and security of vulnerable groups.\nPrivacy and data security_0\nWe’re incorporating privacy considerations into design and development processes, offering customers meaningful privacy choices, and responsibly collecting, managing, and using the customer data that we store.\nDigital trust reports\nWe provide transparency in our bi-annual Law Enforcement Requests Report, US National Security Orders Report, and Content Removal Requests Report.\nLink_93\nLink_94\nLink_95\nLink_96\nLink_97\nLink_98", "We offer many key resources to help visitors gain a more comprehensive understanding of our commitment to empowering our employees.\nMicrosoft careers\nMicrosoft is looking for the best and brightest talent. We invite candidates of all abilities to come as they are and do what they love.\nDiverse perspectives \nMicrosoft applies diversity and inclusion values to all we do. From hiring and facilities, to everyday interactions and innovations. \nMicrosoft Life \nFind stories on how employees are empowered by the company culture to follow their passions, make a difference in the world, and live a #MicrosoftLife.\nInclusive hiring_0\nTo build the best products for everyone, we need to have a diverse and inclusive workforce across all abilities. Through our inclusive hiring program, we work towards that goal every day.\nGlobal Human Rights Statement_0\nOur Global Human Rights Statement and participation in the UN Global Compact, are part of our commitment to respecting human rights covenants and declarations.\nEmployee stories\nExplore the technology and innovations Microsoft employees around the world are creating, from “solving” cancer to tracking down cybercriminals.\nLink_116\nLink_117\nLink_118\nLink_119\nLink_120\nLink_121", "In 2018, we deepened our commitment to diversity and inclusion, offered our employees valuable training, and found better ways to support both them and their loved ones.\nEmployee feedback counts\nNearly 90% of employees participated in our annual engagement survey—93% said they’re proud to work for Microsoft and 89% said they’d recommend it as a great place to work. We also collected over 75,000 Daily Pulse responses and worked with leadership to address employee concerns.\nEthical business decision making\nAll Microsoft employees must complete annual Standards of Business Conduct training. The training course is available in 16 languages and in FY18 we achieved a course completion rate greater than 99 percent.\nCommitted to diversity and inclusion\nTo engage the diverse and dynamic emerging workforce—we build excitement for STEM, seek out non-traditional talent sources, commit to inclusive behaviors, and inspire our people to enhance their awareness, curiosity, and courage.\nGlobal family leave\nMicrosoft offers generous paid family leave to employees worldwide. Employees get a minimum of 20 weeks paid parental leave for birth parents and six weeks for non-birth parents. There’s also caregiver leave, which allows employees up to four weeks of paid leave to care for an immediate family member.\nPerspectives\nWe introduced a new approach to feedback called Perspectives, which was built using learnings from neuroscience and social psychology. Perspectives aims to improve how we ask for, share, and receive high-quality feedback to enable our growth mindset and better embrace our culture.\nGlobal health and safety\nOur commitment to health and safety spans the globe. In 2018, Microsoft operations in the United Kingdom achieved recertification of ISO18001 with no non-conformances—and operations in Spain received annual, government-issued cash health and safety bonuses for the ninth consecutive year.\nLink_108\nLink_109\nLink_110\nLink_111\nLink_112", "Learn more about our commitment to designing products and services that work for everyone.\nMicrosoft accessibility\nFind information on our accessibility programs, product features, guides, and additional resources.\nDeveloper resources\nExplore tools and information you can use to create the next generation of accessible technology.\nInclusive hiring\nLearn about our inclusive hiring programs and apply for accessibility-related job openings.\nInclusive design\nSee how we’re evolving our design system to operate in a complex world.\nMicrosoft accessibility feedback\nShare your ideas on what products, features, and tools would delight you, or vote for ideas you see posted by others.\nLink_43\nLink_44\nLink_45\nLink_46\nLink_47", "Explore more responsible sourcing resources.\nResponsible sourcing_1\nGet more detailed information on the policies and programs related to our commitment to responsible sourcing.\nMicrosoft Supplier Code of Conduct \nAccess our Supplier Code of Conduct in multiple languages and explore links to related resources including our Supplier Code of Conduct training program.\nRaw materials policy \nLearn more about our raw materials sourcing strategy and associated programs.\nSupplier diversity_0\nGet an overview of our Supplier Diversity Program and access links to resources, including a tool for diverse suppliers to register their interest in working with Microsoft.\nMicrosoft sustainable devices\nExplore our approach and commitment to producing environmentally sustainable devices.\nLink_78\nLink_79\nLink_80\nLink_81\nLink_82", "At Microsoft, we strive to create a respectful, rewarding, diverse, and inclusive work environment that enables our employees to create products and services that help others achieve more.\nOur culture\nOne of the most important drivers of our success is our culture. We fundamentally believe that we need a growth mindset culture. This starts with the belief that everyone can grow and develop; potential is nurtured, not predetermined; and anyone can change their mindset.\nRespecting human rights\nOur Global Human Rights Statement, and participation as a signatory to the UN Global Compact, demonstrate our commitment to respecting the following human rights covenants and declarations:\nTotal rewards\nWe develop dynamic, sustainable, and strategic programs that generate trust in our employees and enable them to do their best work. These programs reinforce our culture and values. The result is a global performance and development approach that fosters our growth mindset culture, competitive compensation that proactively ensures equitable pay by role, and distinctive benefits that delight our employees.\nDiversity and inclusion\nAt Microsoft, Global Diversity amp; Inclusion is more than a program, it is a core aspect of our evolving culture that helps us fulfill our mission. We seek out different perspectives that represent various aspects of the world around us and each employee is accountable to actively learn and engage each other’s strengths, experiences, and viewpoints to inform, challenge, and stretch our thinking. As a result, we create richer work experiences, stronger ideas, more impactful products, and better customer experiences.\nLink_99\nLink_100\nLink_101\nLink_102\nLink_103\nLink_104\nLink_105", "Explore some of the ways we’ve engaged with communities around the globe to bring greater economic opportunity.\nClosing the rural broadband gap \nWe launched the Microsoft Airband Initiative to bring affordable broadband internet service to 2 million people in rural America by 2022, while expanding affordable broadband services to rural communities around the world.\nTeaching girls about STEM\nWe hosted more than 100 middle and high school girls on our Fargo, North Dakota campus for a DigiGirlz camp. This gave them the opportunity to learn about careers in technology, connect with Microsoft employees, and participate in workshops.\nAdvancing the workforce in Wyoming\nMicrosoft has partnered with Laramie County Community College (LCCC) to help bolster a 21st-centruy workforce. Students will now have access to data center technician and cybersecurity courses. We’ve also launched a server administration program for Microsoft employees.\nImproving student success \nDallas County educates over 500,000 students in grades K-12, but less than one in three will complete college within six years. To improve student success, Commit, DataKind, Microsoft Cities, and Strive Together are partnering to apply machine learning techniques to inform possible approaches.\nA brand-new community space \nWe’ve opened a Garage space at the Microsoft New England Ramp;D (NERD) Center in Boston. It includes a “maker space,” reality room, and collaboration areas for people to connect and engage.\nLink_155\nLink_156\nLink_157\nLink_158\nLink_159", "Explore key resources to learn more about our environmental sustainability efforts.\nEnvironment\nLearn more about how Microsoft is enabling a sustainable future through our environmental sustainability work.\nGreen blog \nGet news, updates, and opinions about recent environmental events and activities. \nCDP climate change response\nLearn about our commitment to respond to climate change and the role of technology and governments in the transition to a low-carbon economy. \nEnvironmental compliance specifications\nLearn more about environmental compliance specifications for Microsoft hardware, packaging, and supplier conformance in our online hub. \nResponsible sourcing policy\nGet details on our strategy for the sourcing of raw materials for use in Microsoft our hardware products. \nLink_184\nLink_185\nLink_186\nLink_187\nLink_188", "Microsoft continues to focus on business and human rights, and acts as a catalyst for others who are participating in these efforts, in the technology sector and beyond.\nResponsible sourcing_0\nWe’ve built an Audit Management System (AMS) to continue to transform how we embed compliance and sustainability into our business. Using Microsoft Power BI, we can track performance and enable continuous supply chain improvements throughout the SEA stages.\nSEA Academy \nWorker hotline\nOur Worker Hotline program continues to provide a voice for workers to privately and safely express issues and concerns and achieve issue resolution in all our Tier 1 and select Tier 2 suppliers.\nChildren out of mining\nWe continue to grow our partnership with Pact to address child labor in the Democratic Republic of the Congo. The program has received international recognition and has reduced child labor by 97 percent over the course of the project to date.\nRaw materials to their origins \nSupplier diversity\nWe expanded our supplier diversity program to include a focus on LGBTQ-owned businesses. In FY18, Microsoft spent more than $3 billion with minority-, disabled-, veteran-, LGBTQ-, and woman-owned businesses, ranking among the top 20 companies for spending with diverse-owned suppliers globally.\nLink_70\ntext_18\nLink_71\ntext_19", "Microsoft product development and privacy practices focus on six key privacy principles.\nUser control\nWe put users in control of their privacy with easy-to-use tools and clear choices.\nLegal protections \nWe respect local privacy laws and fight for the protection of users’ privacy as a fundamental human right.\nTransparency \nWe’re transparent about data collection and use so users can make informed decisions.\nNo content-based targeting\nWe don’t use email, chat, files, or other personal content to target ads.\nSecurity\nWe protect the data that users entrust to us through strong security and encryption.\nUser benefits\nWhen we do collect data, we use it to benefit you and your experiences.\nLink_19", "We’re building a diverse workforce through inclusive hiring programs and creating products that work for everyone.\n\n\nExpanding accessibility features \nWe are committed to delivering technologies that empower all people to achieve more and have released significant accessibility enhancements in our latest products.\nDriving innovation \nInclusive hiring programs \nTo build the best products for everyone, we need to have a diverse and inclusive workforce. Our inclusive hiring programs work to make that happen.\nLink_35\nLink_36\ntext_15\nLink_37\nLink_38", "We’ve surpassed our commitment to nonprofit cloud services donations, and our employees have raised record breaking donation amounts for global nonprofits.\n‘No one should be left behind’ \nIn 2016, Microsoft Philanthropies committed to donating $1 billion in cloud computing resources to 70,000 nonprofit organizations over three years. By the end of 2017, we’d surpassed that goal and committed to service more than 300,000 nonprofits around the globe. \nTechnology for Social Impact_0\nWe see the potential for nonprofits to leverage digital innovation to address the world’s most pressing issues. In 2017, we announced our Technology for Social Impact group which will be dedicated to serving nonprofit organizations worldwide and helping them move to the cloud.\nMedical Teams International\nMedical Teams International leverages an app built on Azure to revolutionize the way that it works and dramatically increase the speed and accuracy of diagnosis and treatment for more than 1 million patients in Uganda. \nEmployee giving and volunteerism\nMicrosoft matches employee donations of time and money to nonprofit organizations of their choice. In 2017, employees raised a record-breaking $150 million (including company match)—bringing total giving since 1983 to more than $1 billion for nonprofits and schools around the globe. \nLink_125\nLink_126\nLink_127\nLink_128", "Explore key resources to learn more about our work to empower communities around the globe.\nMicrosoft TechSpark_0\nWe’re working to learn more about regional challenges and how technology can help better contribute to local economic growth, with a plan to share our learnings more broadly.\nAirband Initiative \nWe partner with equipment makers, internet and energy access providers, and local entrepreneurs to make affordable broadband access a reality for communities around the world. \nTEALS_0\nA grassroots volunteer-based program, Technology Education and Literacy in Schools (TEALS) helps high schools build and grow a sustainable computer science program. \nMicrosoft Philanthropies_1\nWe believe that technology can provide endless opportunity and Microsoft Philanthropies works to create a future where everyone has access to these opportunities. \nLink_163\nLink_164\nLink_165\nLink_166", "Redesigning our datacenters \nWe successfully piloted an approach to use fuel cells as the primary power source for a small datacenter in Seattle, Washington. This simplified approach could double the energy efficiency of datacenters.\nProduct packaging sustainability\nFor new programs in FY18, we reduced the weight of product packaging by 20 percent, and decreased packaging related greenhouse gas emissions by 29 percent.\nEnergy efficiency in our devices\nThe Surface Pro features a faster CPU and accelerated inking display while using less energy than the Surface Pro 4 and increasing battery life up to 13.5 hours.*\nEPEAT Gold rating\nn 2018, all Surface computers achieved EPEAT Gold environmental performance ratings in the US for their environmentally friendly design.\n*Up to 13.5 hours of video playback. Testing conducted by Microsoft in April 2017 using preproduction Intel Core i5, 256GB, 8GB RAM device. Testing consisted of full battery discharge during video playback. All settings were default except: Wi-Fi was associated with a network and Auto-Brightness disabled. Battery life varies significantly with settings, usage, and other factors of the Surface Pro line and extend its battery life.\nLink_174\nLink_175\nLink_176\nLink_177", "Download our report to learn about the actions we’re taking to prevent modern slavery and human trafficking in our business and supply chain.\nSee the key results of our Responsible Sourcing, and Social and Environmental Accountability audits and assessments in the downloadable FY18 Devices sustainability report.\nDownload the detailed results of our latest annual conflict minerals due diligence process and findings.\nEach year, Microsoft publishes a downloadable list of our top 100 production suppliers for our commercially available devices.\nMicrosoft provides disclosures to help stakeholders evaluate how we’re meeting our commitments. We collect and share these reports in one place for easy reference and download._1\nThe 2018 report content contains disclosures from the Global Reporting Initiative (GRI) Sustainability Reporting Standards._2\nLink_72\nLink_73\nLink_74\nLink_75\nLink_76\nLink_77", "Find more information on key environmental indicators including greenhouse gas emissions, energy consumption, water consumption and discharge, and waste through our downloadable report.\nDownload our response to the annual CDP climate change questionnaire, covering the FY17 reporting period.\nDownload our response to the annual CDP water questionnaire, covering the FY17 reporting period.\nMicrosoft provides disclosures to help stakeholders evaluate how we’re meeting our commitments. We collect and share these reports in one place for easy reference and download._6\nThe 2018 report content contains disclosures from the Global Reporting Initiative (GRI) Sustainability Reporting Standards._9\nDownload the report to learn how we embed sustainability requirements directly into the business practices of our device organization and partners.\nLink_178\nLink_179\nLink_180\nLink_181\nLink_182\nLink_183", "LI_7\nLI_8", "Corporate participation in the public policy process helps to enhance the value we provide to shareholders. It is also fundamental to a free and democratic society.\nParticipation\nWe strive to ensure that our participation in the political process is open, transparent, and based on reasons that are clear and justifiable to our shareholders and the public. Microsoft and our employees participate in the United States political process in a variety of ways.\nPolicy agenda\nA “Cloud for Global Good” is our policy roadmap designed to provide lawmakers and policy influencers with a set of recommendations to advance the digital transformation opportunities that the cloud presents.\nThe policy roadmap is grounded in our belief in a future powered by the cloud, and our commitment to realize the social and economic benefits of cloud computing for everyone. The roadmap covers a range of policy areas and provides a comprehensive set of recommendations and considerations mapped to three core principles: a trusted cloud, a responsible cloud, an inclusive cloud.\nResponsible governance\nThe Regulatory and Public Policy Committee of the Microsoft Board of Directors is responsible for overseeing our public policy work and related activities. The committee receives regular, formal reports. The management of our participation in the US political process is the responsibility of the Corporate Vice President for US Government Affairs, who reports directly to Brad Smith, Microsoft President and Chief Legal Officer. Brad Smith reports to the company CEO, Satya Nadella.\nLink_140\nLink_141\ntext_21", "Explore these key resources to learn more about our work empowering people around the globe.\nEncouraging girls to pursue STEM and computer science\nUnderstand more about why girls lose interest in STEM and what we can do about it.\nCareer pathways_0\nCreating opportunities for everyone to succeed in the digital economy.\nMicrosoft Philanthropies\nWe believe technology can provide endless opportunity and Microsoft Philanthropies works to create a future where everyone has access to these opportunities.\nLink_62\nLink_63\nLink_64", "The UN Guiding Principles on Business and Human Rights and the Global Network Initiative Principles on Freedom of Expression and Privacy steer our human rights work.\nGlobal human rights standards\nWe’ve updated our Global Human Rights Statement, increased organizational partnerships, and operationalized our human rights commitments through employee training and other due diligence activities. We’ve also implemented policies to ensure we have responsible and lawful access to customer data.\nEmpowering the UN\nWe’re working with the UN Human Rights Office to help them develop technology to predict, analyze, and respond to human rights situations. We’re also collaborating on joint projects and have provided a multi-million dollar grant to support ongoing efforts.\nAI and human rights\nArtificial intelligence (AI) can improve life in many ways and help solve societal problems but AI comes with both challenges and opportunities. We need to address the challenges together with shared responsibility. Our book, The Future Computed, outlines the future of responsible AI technology.\nLink_83\nLink_84\nLink_85", "Using the United Nations Guiding Principles Reporting Framework, we provide detailed disclosures for each of our salient human rights issues and activities through a downloadable report.\nDownload the Global Network Initiative Public Report on the 2015/2016 Independent Company Assessments.\nMicrosoft provides disclosures to help stakeholders evaluate how we’re meeting our commitments. We collect and share these reports in one place for easy reference and download._2\nThe 2018 report content contains disclosures from the Global Reporting Initiative (GRI) Sustainability Reporting Standards._3\nDownload the report to learn about the actions we’ve taken to prevent modern slavery and human trafficking in our business and supply chain.\nLink_88\nLink_89\nLink_90\nLink_91\nLink_92", "Explore key resources to learn more about our work to empower nonprofits.\nMicrosoft Philanthropies_0\nWe believe that technology provides endless opportunity and Microsoft Philanthropies works to create a future where everyone has access to endless possibilities\nNonprofit offers \nNonprofits are committed to changing the world and we’re committed to helping them make a greater impact through donated and discounted cloud solutions and hardware. \nEmployee engagement\nMicrosoft employees give generously to empower those most in need in our local communities and around the world. Employee giving is part of our culture and how we live our mission. \nLink_132\nLink_133\nLink_134", "Explore key resources to learn more about our efforts to strengthen communities.\nHumanitarian action_0\nIn addition to providing technology resources, Microsoft partners with trusted humanitarian organizations that work every day to provide aid and support to displaced people around the world.\nMicrosoft Philanthropies \nAt Microsoft, we believe in a future where every person has the skills, knowledge, and opportunity to achieve more. Microsoft Philanthropies works to empower people, invest in communities and create systemic change around the world. \nEmployee giving\nMicrosoft matches employee donations of time and money, which can be particularly helpful during natural disaster scenarios. Every year in October, the Giving Campaign makes a significant annual impact in addition to generous giving year-round. \nLink_137\nLink_138\nLink_139", "Microsoft and our employees participate in the United States political process in a variety of ways.\nDefending Democracy Program \nIn FY18, we announced the Defending Democracy Program to work with governments globally to help safeguard political campaigns and voting.\nThe CLOUD Act—a big step forward \nThe cloud has made privacy issues a practical necessity for technology. We recognize and accept the responsibility to help protect public safety and preserve personal privacy.\nA Cloud for Global Good_0\nIn 2018, we released an updated Cloud for Global Good, a policy road map for governments, industry, and civil society to consider as they realize the opportunities and address the challenges presented by the Fourth Industrial Revolution.\nLink_142\nLink_143\nLink_144", "In 2018, we made strong progress towards our renewable energy, research and development, and product carbon efficiency goals.\nA solar power milestone \nWe signed a 315 MW project in Virginia which is the largest corporate solar agreement in the United States. Purchasing clean energy where we have operations, especially when there are relatively few renewable projects, improves our operations and helps accelerate change.\nMaking our cloud green\nA new study found that Microsoft cloud services are up to 93 percent more energy efficient and up to 98 percent more carbon efficient than our on-premises offerings as a result of our investments in efficiency and green energy.\nUnlocking conservation with AI\nUsing AI and a new Azure chip solution, Microsoft made a breakthrough discovery and converted 200 million images into a national land cover map in about 10 minutes. These maps can be used to protect land and watersheds, enable better disaster prediction and response, and fight deforestation.\nLink_171\nLink_172\nLink_173", "LI", "LBody\nLBody_0\nLBody_1\nLBody_2\nLBody_3\nLBody_4\nLBody_5\nLBody_6\nLBody_7", "At a time when digital technology is transforming every industry and every part of our daily life and work, our customers are increasingly looking for a partner whose business interests are fundamentally aligned with their own. At Microsoft, our customers’ interests are core to our success. That is what engenders trust.\nAnd, as we make advancements in AI, we are asking ourselves tough questions — like not only what computers can do, but what should they do. That’s why we are investing in tools for detecting and addressing bias in AI systems and advocating for thoughtful government regulation.\nWe also have a responsibility as a company to empower everyone to fully participate in our society and economy using technology. We are working with governments, the private sector and local nonprofit organizations around the world to\nLink_15\ntext_11\nLink_16\ntext_12", "make this vision a reality. We donated more than $1.4 billion in software and services in fiscal 2018, via Microsoft Philanthropies, helping nonprofits get access to the technology they need to drive greater impact, and in calendar year 2017 our employees donated a record $158 million (including company match) through our employee giving program to support nonprofits in local communities.\nI’m proud of our progress, and I’m proud of the more than 100,000 Microsoft employees around the world who are focused on our customers’ success in this new era. We have long recognized that the health, wellbeing and diversity of our employees help Microsoft succeed. That’s why we provide industry-leading benefits for our employees, including comprehensive health and wellness programs for families, paid vacation, paid sick leave and paid time off for new parents. We were one of the first companies to require our U.S. suppliers doing substantial business with us to provide paid time off for their employees. And this year we took a further step to ensure that these suppliers also provide their employees with paid parental leave.\nOver the past year, we have made progress in building a diverse and inclusive culture where everyone can do their best work. Since FY16, we have nearly doubled the number of women corporate vice presidents at Microsoft — both overall and in technical roles. We’ve increased African American/Black and Hispanic/Latino representation by 33 percent. And this past fiscal year more than half of our U.S. interns were women or African American/Black and Hispanic/Latino. We must keep pushing to do more, and representation is only one measure of progress. Creating a diverse and inclusive workplace at Microsoft is everyone’s job. And this year we increased our commitment, ensuring that every leader and employee prioritizes diversity and inclusion as part of our annual performance review process.\nIn closing, we will continue to create local opportunity, growth and impact in every community and country around the world. We will continue to invest in the largest growth opportunities and innovate boldly to serve our customers. We will continue to help our customers build digital capability, so they can grow and thrive — today and long into the future. We will continue to work to instill trust in technology across everything we do, to advocate for customer privacy, drive industry-wide cybersecurity initiatives and champion ethical AI. And we will continue to transform our culture to reflect the diverse customers we serve around the world, while holding fast to our timeless values.\nLink_17\ntext_13\nLink_18\ntext_14", "New Data Protection Officer \nIn March 2018, Microsoft appointed Steve May as its European Data Protection Officer (DPO). In his role Steve represents our customers’ data protection needs and rights in assessing Microsoft’s data processing and supports engagements with European regulators relating to data protection matters.\nImproved privacy dashboard \nMicrosoft added new capabilities to its web-based privacy dashboard that allows users to see and control their online activity data. The dashboard allows users to view—and choose to clear—data Microsoft collects, including voice, apps and services, browsing amp; search history, and location activity.\nThe Future Computed \nWe released a new book, The Future Computed: Artificial Intelligence and its role in society. In the book, we identify six ethical principles—fairness, reliability and safety, privacy and security, inclusivity, transparency, and accountability—to guide the development and use of AI. \nLink_26\nLink_27\nLink_28", "Our global impact \nIn more than 60 countries around the world, we support nonprofit organizations and education institutions in their efforts to create opportunities for all young people to become future ready.\nEncouraging girls to pursue STEM\nMore than 80 percent of the students benefitting from YouthSpark grants and partnerships are from underserved communities, and more than half are female. In 2018, we set out to understand more about why girls lose interest in STEM and what we can do about it.\nAdvancing students with TEALS\nIn 2017, Technology Education and Literacy in Schools (TEALS) paired over 1000 volunteers from over 500 companies with classroom teachers in 344 high schools in 29 states and the District of Columbia—bringing computer science education to over 12,000 students.\nLink_56\nLink_57\nLink_58", "Microsoft aspires to leadership in business and human rights, and to serve as a catalyst for action by others—in the technology sector and beyond.\nClass-leading due diligence\nWe aim to conduct best-in-class human rights impact assessments on our salient human rights actions, and emerging trends in business and human rights.\nRights-aware decision making\nWe’re deploying an integrated approach to human rights decision making across key aspects of Microsoft. \nProactive engagement\nWe use actions and public statements to demonstrate that Microsoft is an important voice, and advocate for the promotion of human rights.\nTransparent leadership\nWe’re advancing transparency in our work and promoting human rights through increased disclosure and engagement.", "We work closely with nonprofit organizations around the world to help them accelerate their organizational transformation with technology.\nTechnology for Social Impact\nTechnology can be a powerful tool to help solve the world’s most challenging issues. It can enable nonprofit organizations to be more productive, more innovative, and ultimately, to drive greater societal impact.\nWe’re committed to delivering technology solutions that are accessible, affordable, and relevant for nonprofits everywhere. Donations and discounts are available for cloud solutions including Microsoft 365, Office 365, Power BI, and Azure. Hardware discounts are also available on Microsoft Surface devices.\nWith the goal of reaching over 300,000 nonprofits in the next three years, the Microsoft partner ecosystem is critical to our success. We’re developing partnerships to provide relevant nonprofit technology solutions and services critical to helping nonprofits scale and drive greater impact around the world.\nHack for Good\nHack for Good is a community of Microsoft employees with a passion for applying technical and business skills to some of the world’s most pressing societal problems. Previous projects have included a tool for disrupting sex trafficking, a PhotoDNA cloud service, and an app to transform the foster care system.\nLink_122\nLink_123", "Public policy principles \nMicrosoft has adopted principles for engagement in the public policy process in the United States. These principles address issues specific to the U.S. political and fundraising systems. \nMicrosoft On the Issues blog\nFind news and perspectives on legal, public policy, and Corporate Social Responsibility topics. \nMicrosoft on the Issues Twitter\nGet additional news and perspectives from Microsoft on legal, public policy, and philanthropic topics. \nLink_152\nLink_153\nLink_154", "We engage communities at a local level to bring greater economic opportunities through the power of technology.\nMicrosoft TechSpark\nMicrosoft TechSpark is a national civic initiative to foster greater opportunity and job creation in communities outside of major metropolitan centers in the United States. We are developing long-term community partnerships to address their unique needs, create a future-ready workforce, and be a catalyst for economic opportunity for all Americans. \nThe TechSpark initiative focuses on five areas: digital transformation, digital skills and computer science education, career pathways, rural broadband, and support for nonprofits. We will also support a signature project in each community—a major investment designed to help accelerate transformation.\nInitially, we are focusing on deep partnership in six communities: Fargo, North Dakota; El Paso, Texas; Southern Virginia; the North Central Basin of Washington; Northeast Wisconsin; and Cheyenne, Wyoming.\nMicrosoft Cities\nWe strive to ensure that our participation in the political process is open, transparent, and based on reasons that are clear and justifiable to our shareholders and the public. Microsoft and our employees participate in the United States political process in a variety of ways._0\nPolicy agenda_0\nMicrosoft Cities works in 10 cities around the United States to strengthen metropolitan communities and foster civic innovation for public good. Our Cities work focuses on education and training, economic development, sustainability, criminal justice, accessibility, transportation, and other local priorities. We will look to apply technology and data to advance the effectiveness and awareness of local initiatives and priorities. Through nonprofit, government, and organizational partnerships, the team strives to actively collaborate on work that has a sustained and scalable impact on the lives of individuals.", "Microsoft aspires to enable a sustainable future by empowering every person and organization on the planet to thrive in a resource-constrained world.\nFocus areas\nOur environmental sustainability work focuses in three primary areas: carbon and energy, water and ecosystems (including agriculture, biodiversity, conservation), and waste minimization. We work to reduce our impact within our operations, create sustainable products and devices, innovate with our partners to solve environmental challenges with technology, and drive policies that help create a more sustainable future.\nWater\nAt Microsoft, we believe in the sustainable management of the water resources we use across our operations We’re focused on increasing our understanding water-related risks and business impacts and how those affect the communities we serve. We set meaningful goals, improve our water efficiency, and advance innovative solutions to water challenges. The Silicon Valley campus will be the first tech campus with net-zero water certification, all the non-drinking water in the building will come from rainfall or on-site recycled water.\nCarbon\nOur internal carbon fee has helped us achieve 100 percent carbon neutrality since 2012. The carbon fee funds our work to improve operational efficiency and enables us to buy clean energy and invest in carbon offset community projects.\nLink_167\nLink_168", "Public policy engagement_0\nLink_227\nLink_228\nLink_229\nLink_230\nLink_231\nLink_232\nLink_233\nLink_234", "Microsoft Political Action Committee (MSPAC)\nThe Microsoft Political Action Committee (MSPAC) Steering Committee, a bipartisan committee of federal and state government affairs professionals, is responsible for oversight and day-to-day decision making related to political spending. Oversight of the committee includes disbursements from MSPAC and permissible employee and shareholder donations made by the program.\nEngagement Principles\nUnder these policies, we commit to disclosing a semi-annual list of election campaign expenditures, including financial and in-kind contributions by the company and MSPAC to candidates, political parties, political committees, and other politically active tax-exempt organizations, such as those organized under Internal Revenue Code section 501(c)(4), as defined by applicable laws.\nTo uphold our commitment to the transparency of our political spending and contributions, we do not make corporate contributions to any non-candidate or non-party political committees organized under Section 527 of the Internal Revenue Code, which are formed solely to influence elections. We also make no independent political expenditures or electioneering communications, as permitted under the US Supreme Court’s Citizens United ruling, and we inform our trade associations that no Microsoft funds may pay for their independent expenditures or electioneering communications.\nTransparency in reporting\nMicrosoft regularly files and publishes reports that detail our public policy advocacy activities. Our disclosures include consultant fees, lobbying expenses, and trade association dues spent on advocacy. Please see FY18 reporting resources below.\nLink_262\ntext_23", "The Microsoft Technology and Corporate Responsibility (TCR) team, in collaboration with leaders across business and operations, drives companywide approaches to corporate social responsibility issues. The head of TCR reports directly to Microsoft President and Chief Legal Officer, Brad Smith, who sits on our Senior Leadership Team and reports directly to CEO, Satya Nadella. We work together to earn the trust and confidence of the public, our customers, partners, employees, and shareholders.\nLink_9\ntext_6\nLink_10\ntext_7\nLink_11\ntext_8", "This semi-annual report provides information about the legal demands for customer data we receive from law enforcement agencies around the world, as well as our responses to them. \nThis semi-annual report provides the data we’re legally allowed to share about demands for customer data we receive from the US government pursuant to national security laws, as well as our responses to them.\nMicrosoft provides disclosures to help stakeholders evaluate how we’re meeting our commitments. We collect and share these reports in one place for easy reference and download.\nThe 2018 report content contains disclosures from the Global Reporting Initiative (GRI) Sustainability Reporting Standards.\nLink_22\nLink_23\nLink_24\nLink_25", "We set high standards for our suppliers and collaborate with them to positively impact their workers, their local communities, and their business operations.\nMicrosoft has relationships with thousands of suppliers around the globe, spanning both hardware suppliers that manufacture our devices and components, and indirect suppliers that provide everything from advertising services to building construction and maintenance.\nSince 2005, Microsoft Devices operated an industry-leading Responsible Sourcing, formerly Social and Environmental Accountability, program to ensure that our hardware and packaging suppliers conform to our Supplier Code of Conduct and additional device-related requirements for living conditions, safe working practices, and environmental, health, and safety protection.\nThe Microsoft Global Procurement Group created a formal responsible sourcing function in 2013 to consolidate and enhance its responsible sourcing activities with our indirect suppliers.\nWe advance our responsible sourcing commitments through:\nLink_67\ntext_16\nLink_68", "LBody_18\nLBody_19\nLBody_20\nLBody_21\nLBody_22\nLBody_23\nLBody_24", "Microsoft regularly files and publishes downloadable reports that detail our public policy advocacy activities. Our disclosures include consultant fees, lobbying expenses, and trade association dues spent on advocacy.\nAn outside ethics counsel reviews and approves all Microsoft Political Action Committee (MSPAC) and corporate political giving activities, filings, reports, and materials. We publish MSPAC and corporate political spending reports semi-annually on our CSR reports hub.\nThe 2018 report content contains disclosures from the Global Reporting Initiative (GRI) Sustainability Reporting Standards._7\nMicrosoft is a member of many trade associations (organized under section 501(c)(6) of the Internal Revenue Code) in the US to help advance our public policy agenda and related business goals. We publicly disclose and annually update a list of those trade associations to which Microsoft pays dues and makes other expenditures through our Corporate, External and Legal Affairs (CELA) group. Each year, Microsoft inquires and makes a reasonable effort to obtain information about what portion of the company’s dues or payments were used for lobbying expenditures or political contributions from those associations where our dues and other expenditures total $25,000 or more. Current and archived reports are published on our CSR reports hub.\nLink_147\nLink_148\nLink_149\nLink_150", "Responsible sourcing_2\nLink_216\nLink_217\nLink_218\nLink_219\nLink_220\nLink_221\nLink_222", "Empowering nonprofits_1\nLink_238\nLink_239\nLink_240\nLink_241\nLink_242\nLink_243\nLink_244", "H3\nH3_0\nH3_1\nH3_2\nNormalParagraphStyle_16\nNormalParagraphStyle_17\nNormalParagraphStyle_18", "These are strong results — and yet the opportunity ahead in a world powered by an intelligent cloud and edge is unprecedented. Imagine a future where all of your apps and experiences revolve around you and transcend any single device; where data in any form is analyzed in real time so that computers can anticipate and even act on your behalf and augment what you would otherwise be able to accomplish on your own. And where computing is more distributed and embedded in the world, from intelligent digital assistants at work, on the go and in your home that you can communicate with in a myriad of ways — voice, eyes or gestures — to oil rigs that adjust production in real time as demand fluctuates in global markets.\nAcross each of our customer solution areas, we are broadening our offerings and accelerating our innovation to capture the opportunities this new era will create for our customers and better meet their unarticulated needs.\nModern Workplace\nWe expanded our Microsoft 365 offerings to reach new audiences and empower more employees for the modern workplace, protecting data from increasingly sophisticated cybersecurity threats and delivering secure productivity and collaboration tools. Already a multi-billion-dollar business, Microsoft 365 gives customers a path to the cloud and broadens our reach with new and under-penetrated markets — from Fortune 500 enterprises to small businesses to more than 2 billion firstline workers. More than 135 million people use Office 365 commercial every month, and Outlook Mobile is helping people be productive and stay secure on more than 100 million iOS and Android devices worldwide — with AI-infused experiences they use every day. Microsoft Teams has rapidly become the hub for teamwork and is being used by more than 300,000 organizations of all sizes, including 87 of the Fortune 100. Windows 10 is now active on nearly 700 million devices around the world. And we continue to create new device categories with always-on, always-connected Windows 10 PCs and an expanded family of Surface devices including the new Surface Go — setting the bar for the industry.\nBusiness Applications\nEvery process inside a business is being digitized, and we are winning customers with our differentiated approach, enabling organizations of all sizes to digitize critical business functions — from sales to marketing to HR. Dynamics 365 is the alternative to monolithic, siloed suites of business applications with modular, extensible and AI-driven apps that are part of a connected data graph and unlock insights across every part of the organization. Net seats grew 52 percent year-over-year, and our investments in Power BI have made Microsoft the leader in business analytics in the cloud. Our recently announced Open Data Initiative with Adobe and SAP will enable our customers to take control of their data and build new experiences that truly put people at the center. And we are innovating with HoloLens and mixed reality to create immersive experiences that digitize physical spaces and interactions to transform training, collaboration and design for firstline workers, who account for 80 percent of the world’s workforce.\nLinkedIn is the essential platform to connect the world’s professionals and create economic opportunity for every member of the global workforce. LinkedIn now has more than 575 million members, and we are continuously innovating to give them new ways to connect and engage with one another — from increasing the relevancy of the LinkedIn Feed to a better mobile experience, to introducing new video and messaging capability. And we are transforming how companies manage talent, training, and sales and marketing with new solutions powered by the LinkedIn and Microsoft Graphs. Dynamics 365 for Talent with LinkedIn Recruiter and Learning gives HR professionals a complete solution in an increasingly competitive talent marketplace, and deep integration of LinkedIn Sales Navigator and Dynamics 365", "redefines social selling, enabling sales professionals to dramatically increase their effectiveness by drawing on the relationships in their personal networks. We will continue to innovate across the LinkedIn platform to add new value for members and customers.\nApplications and Infrastructure\nTo thrive in the era of the intelligent cloud and intelligent edge, customers need a consistent computing stack from the cloud to the edge. Azure is the only hyperscale cloud that extends to the edge across identity, data, application platform, and security and management — and this architectural advantage is increasingly clear to our customers. Azure revenue grew 91 percent year-over-year.\nAnd we are investing aggressively to build Azure as the world’s computer. We expanded our global datacenter footprint to 54 regions — more than any other cloud provider — and with the most comprehensive compliance coverage in the industry to meet evolving regulatory needs, creating broader economic benefit and opportunity in local markets on six continents. With Project Natick, we even innovated beyond land, experimenting with a full-scale subsea, zero emissions datacenter with the promise of setting new standards for datacenter provisioning, latency and sustainability.\nWe added nearly 500 new Azure capabilities in the past year alone, focused on both existing workloads and new workloads such as IoT and Edge AI. IoT is transforming the rules of manufacturing, retail, and oil and gas — fueling cloud and edge innovation, accelerating the evolution of digital factories and enhancing supply-chain performance. Azure IoT and Azure Stack — a first-of-its-kind cloud-to-edge solution — enable customers and partners to build IoT solutions that run at the edge, so people from the factory floor to the retail store to the oil rig can manage devices and analyze data in real time. We introduced Azure Sphere, another first-of-its-kind, highly secure edge solution that combines chip design, an IoT operating system and a cloud service to secure the more than 9 billion microcontroller-powered devices entering the market each year — from kitchen appliances to industrial equipment. It’s an incredible example of how we are helping our customers realize the promise of a world of connected devices and things. And, our ambition extends beyond today’s computers to quantum computing to take us beyond the limitations of traditional, transistor-based computers and enable entirely new scenarios. We first unveiled our vision for quantum last year, and we are already seeing customers apply our quantum-inspired algorithms to address some of their most pressing challenges.\nData and AI\nOur customers will increasingly need to build their own AI to extract insights from the ever-increasing amount of data they collect — and we are investing to make Azure the best cloud for their comprehensive data estates. We are democratizing data science and AI with Azure Cognitive Services, Azure Machine Learning and data services such as Azure Cosmos DB — the first globally distributed, multi-model database — to help organizations of all sizes convert their data into insights and experiences for competitive advantage. In less than a year, Azure Cosmos DB has already exceeded $100 million in annualized revenue. Azure Database for MySQL and PostgreSQL makes it even easier to bring open source-powered applications to Azure, expanding our opportunity in this space. And we are seeing rapid customer adoption of Azure Databricks for data preparation, advanced analytics and machine learning scenarios. We are leading in the field of AI research, achieving human parity with object recognition, speech recognition, machine reading and — this year — language translation. But that is not enough. We are committed to translating these breakthroughs into toolsets our customers can use. ", "We’re driving compliance across our cloud, helping users view and control their activity, and engaging with stakeholders on the future or artificial intelligence.\nGDPR and privacy \nMicrosoft is committed to making sure that our products and services comply with GDPR. We provide our commercial customers with robust tools, backed up by contractual commitments, to help them comply. We are also extending GDPR Data Subject Rights to all our consumer customers around the world. \nPromoting online civility for teens \nThe Council for Digital Good discusses the state of online civility today and shares how digital interactions could be safer and healthier for everyone. \nLink_20\nLink_21", "Microsoft provides conformance statements for global standards including section 508 requirements, EN 301 549 standard, and Web Content Accessibility Guidelines. We have also embraced the Trusted Tester program, developed by DHS’s Office of Accessible Systems amp; Technology.\nMicrosoft provides disclosures to help stakeholders evaluate how we’re meeting our commitments. We collect and share these reports in one place for easy reference and download._0\nThe 2018 report content contains disclosures from the Global Reporting Initiative (GRI) Sustainability Reporting Standards._0\nLink_39\nLink_40\nLink_41\nLink_42", "Microsoft believes technology can play a critical role in helping the world’s most vulnerable people recover and rebuild their lives.\nEmpowering first responders\nFirst responders provide critical services to those affected by natural disasters. Microsoft supports first response organizations through technology donations and financial support during response and recovery efforts. We also work closely with experts to better prepare for and respond to future disasters.\nEmpowering humanitarian organizations\nFrom front-line aid workers to programs teams, humanitarian organizations provide a broad spectrum of vital services to vulnerable populations around the world. We’re committed to helping humanitarians organizations pursue their missions with secure, reliable, and trusted cloud solutions.\nEmpowering displaced people\nRefugees face countless challenges as they flee their homes and countries. We partner with nonprofit organizations to provide digital skills resources and training to help displaced people begin rebuilding their lives.", "In the wake of some of the worst natural disasters, Microsoft stepped up to assist in recovery efforts to those affected.\nHurricane Maria\nFollowing the devastation of Hurricane Irma, Maria brought additional damage to the Caribbean. Microsoft provided over $5 million in resources, and the Airband Initiative team donated TV White Space kits to support connectivity restoration throughout Puerto Rico and the US Virgin Island.\nCentral Mexico earthquake\nOver 200 people were killed when a 7.1 magnitude earthquake struck Mexico City and central Mexico. Microsoft provided $700,000 in employee giving and financial support, delivered 2.3 million minutes of free Skype calls, and provided emergency-service teams to assist in the recovery efforts.\nHurricane Harvey\nIn response to incredible flooding in Texas and the Gulf Coast, Microsoft allocated over $2.4 million in resources and activated multiple missions to support local government agencies. In addition, Microsoft employee donation and corporate matching provided $1.4 million to disaster response organizations.", "Link_13\ntext_9", "Download a report of our donation and volunteerism investments over the past three fiscal years.\nMicrosoft provides disclosures to help stakeholders evaluate how we’re meeting our commitments. We collect and provide share these reports in one place for easy reference and download.\nThe 2018 report content contains disclosures from the Global Reporting Initiative (GRI) Sustainability Reporting Standards._1\nLink_59\nLink_60\nLink_61", "TEALS\nA grassroots volunteer-based program, Technology Education and Literary (TEALS) helps high schools build and grow a sustainable computer science program.\nAirband Initiative\nWe partner with equipment makers, internet and energy access providers, and local entrepreneurs, to make affordable broadband access a reality for communities around the world.\nLink_65\nLink_66", "Collaborating with UC Berkeley\nIntegrating critical human rights issues directly into education can generate innovative approaches to managing our responsibilities and may help create the next generation of ethical leaders. We’re partnering with UC Berkeley to provide annual conferences, student consulting projects, and other collaborative efforts.\nStrengthening cybersecurity\nThe Digital Geneva Convention is a framework to help protect and defend civilians against nation-sponsored cyberattacks, including tech-accord and a potential binding agreement.\nLink_86\nLink_87", "Training and development\nTo support our growth mindset culture and meet the learning needs of our employees around the world, we offer a diverse range of learning and development opportunities. We believe training can be more than formal instruction, and our training philosophy focuses on providing the right learning, at the right time, in the right way. Opportunities include:\nWellness and safety\nMicrosoft is committed to supporting our employees’ well-being with comprehensive benefits to help employees maximize their physical, financial, and social wellness. In addition, our Occupational Health and Safety program integrates appropriate practices into our operations and works for continual improvement in employee health and safety. As part of this commitment:\n*Those ILO principles are freedom of association and the effective recognition of the right to collective bargaining; elimination of all forms of forced or compulsory labor; effective abolition of child labor; and elimination of discrimination in respect of employment and occupation.\nLink_106", "The demographics of our workforce will continue to serve as a measure of our progress toward a more diverse and inclusive Microsoft, and our contribution to the diversity of the tech industry at large.\nMicrosoft provides disclosures to help stakeholders evaluate how we’re meeting our commitments. We collect and share these reports in one place for easy reference and download._3\nThe 2018 report content contains disclosures from the Global Reporting Initiative (GRI) Sustainability Reporting Standards._4\nLink_113\nLink_114\nLink_115", "Download the factsheet to learn more about our donation and volunteerism investments over the past three fiscal years.\nMicrosoft provides disclosures to help stakeholders evaluate how we’re meeting our commitments. We collect and share these reports in one place for easy reference and download._4\nThe 2018 report content contains disclosures from the Global Reporting Initiative (GRI) Sustainability Reporting Standards._5\nLink_129\nLink_130\nLink_131", "Creating a safer digital world \nAs technology continues to reshape the world, the conflicts between nations are no longer confined to air, land, and sea. The future of internet cybersecurity will require the public and private sector working together over many years.\nCPA-Zicklin Index \nIn 2018, the CPA-Zicklin Index named Microsoft as a “Trendsetter” among the Samp;P 500 for our leadership in political disclosure and accountability.\nLink_145\nLink_146", "Download the report of our donation and volunteerism investments over the past three fiscal years.\nMicrosoft provides disclosures to help stakeholders evaluate how we’re meeting our commitments. We collect and share these reports in one place for easy reference and download._5\nThe 2018 report content contains disclosures from the Global Reporting Initiative (GRI) Sustainability Reporting Standards._8\nLink_160\nLink_161\nLink_162", "Energy\nWe aspire to use our purchasing power, research and development and technology to change how Microsoft – and ultimately the world – consumes energy. We’ve purchased more than 1 gigawatt of renewable energy and have renewable energy projects on three continents. In our datacenters, we pilot cutting-edge fuel cell research and energy-storage batteries inside. Beyond our operations, we work with customers, partners and policymakers to enable greater change. We have also increased the energy efficiency of our devices and leveraged the energy saving capabilities of Windows 10 to provide a better user experience while reducing consumer energy use. Lastly, our Factory of the Future solar panel installation, combined with the smart building system in one of our largest supplier’s facilities is projected to reduce greenhouse gas emissions (in CO2e) by approximately three million pounds annually.\nWaste minimization\nWe design our products, buildings, and operations to promote resource reduction and reuse, enabling a more resource-efficient and productive economy. We use life cycle assessments and value stream analysis to improve product and packaging resource efficiency. On average, we have reduced new product package weight by 20 percent through a combination of right-sizing packaging to the product and introducing new lightweight materials. Microsoft is a member of over 150 recycling programs worldwide, covering electronics, batteries, and packaging. Beyond our products, our Puget Sound campus is zero-waste certified, reducing overall waste generation and diverting at least 90 percent of our operational waste from landfills.\nLink_169\nLink_170", "Human rights_0\nLink_208\nLink_209\nLink_210\nLink_211\nLink_212", "This document is provided as is. Information and views expressed in this document, including URL and other Internet website references, may change without notice. You bear the risk of using it.\nThis document does not provide you with any legal rights to any intellectual property in any Microsoft product.\nYou may copy and use this document for your internal reference process.\n© 2018 Microsoft. All rights reserved.\nBing, BizSpark, DreamSpark, Imagine Cup, Internet Explorer, Office, Office 365, Outlook, Microsoft, Microsoft Azure, Microsoft Dynamics, Microsoft YouthSpark, PhotoDNA, OneDrive, Skype, Surface, Windows, Xbox, Xbox 360, Xbox One, Xbox LIVE, and Yammer are trademarks of the Microsoft group of companies. All other trademarks are property of their respective owners.\nPlease consider the environment before printing this report.", "Make sure they are not complicit in human rights abuses.\nLink_4\ntext_1", "Global Reporting Initiative Sustainability Reporting Guidelines\nCommunication on Progress\nUN Guiding Principles on Business and Human Rights\nUN Sustainable Development Goals\npublicly report", "Dear shareholders, customers, partners and employees:\nAs I reflect on our progress this past year, I first want to say thank you for your commitment and investment in Microsoft. I’m proud of what we’ve accomplished together as we innovate and help customers navigate their digital transformation, and I am even more optimistic about the opportunity ahead.\nWe are living at a crucial time in history where the impact of technology on every part of our daily life and work and every aspect of our society and economy is more acute than ever before. It is incumbent upon leaders of our industry to ensure that the technology we build always creates opportunity. Too often, we celebrate technology disruption for the sake of disruption without reflecting on its unintended consequences. What the world needs is technology that benefits people and society more broadly and is trusted.\nOur mission is to empower every person and every organization on the planet to achieve more. Our business model is dependent on our customers’ and partners’ success. We are grounded in creating local economic opportunity in every community, helping to unlock the power of technology to address our customers’ most pressing challenges. Our platforms and tools enable creativity in all of us. They help drive small-business productivity, large business competitiveness and public-sector efficiency. They also support new startups, improve educational and health outcomes, and empower human ingenuity. Our sense of purpose lies in our customers’ success.\nOur culture enables us to pursue our mission with a growth mindset. It’s a continuous practice of learning, renewal and having the courage to confront our own fixed mindsets. Collectively, we are moving from a group of people who know it all to a group of people who want to learn it all. To achieve our mission, we must reflect the diverse perspectives and experiences of our customers around the world. We must have a deep sense of their unmet and unarticulated needs. Each day we are push-", "LI_6", "LBody_14\nLBody_15\nLBody_16\nLBody_17", "Facts about Microsoft\nLink_198\nLink_199\nLink_200\nLink_201", "Microsoft is committed to empowering sustainable development for everyone, and ensuring everyone has access to the benefits technology provides and the opportunities it creates.\nOur mission to empower every person and every organization on the planet to achieve more aligns strongly to the UN SDGs. We demonstrate this commitment through our products and solutions, our responsible business practices, our programs, our policy and advocacy work and our philanthropic investments.\nWe see opportunities in how we do business and how we use technology to address some of the world’s greatest challenges. We are committed to leading responsible business practices as the foundation of how we work and we seek ways to scale the impact of our efforts around humanitarian initiatives. To this end, we committed to driving education, digital skills, work, and livelihood opportunities for refugee or displaced youth, ensuring gender and accessibility inclusion, as well as leading environmental initiatives.\nLink_246\ntext_22", "We’ve designed our Corporate Social Responsibility (CSR) report to share information about how we’re making the world a better place. The digital report offers comparable year-over-year data about our progress and provides quick links to additional resources to help tell a comprehensive story. In his annual shareholder letter, Satya Nadella, addresses our business and social impacts and sets the stage for both the 2018 CSR and Financial annual reports. Unless otherwise stated, the information on this report covers all of the Microsoft global operations during the 2018 fiscal year (July 1, 2017 to June 30, 2018).\nLink_2\ntext", "The human rights-related disclosures are based on the UN Guiding Principles on Business and Human Rights Reporting Framework (RAFI). In addition, this report serves as the Microsoft annual Communication on Progress (COP) under the United Nations (UN) Global Compact. The following table describes the location of content relevant to each of the ten UN Global Compact principles.\nLink_3\ntext_0", "The elimination of discrimination in respect of employment and occupation.\nLink_5\ntext_2", "Encourage the development and diffusion of environmentally friendly technologies.\nLink_6\ntext_3", "Businesses should work against corruption in all its forms, including extortion and bribery.\nLink_7\ntext_4", "One of the greatest privileges I have as CEO of Microsoft is seeing firsthand the incredible impact our technologies have on people and organizations around the world. Our ecosystem touches the lives of billions of people every single day, creating new opportunity for our customers and partners and positively impacting local communities.\nIn Kenya, our partner M-KOPA Solar has connected hundreds of thousands of homes across sub-Saharan Africa to solar power for the first time using the Microsoft Cloud, innovating with a pay-as-you-go model that helps households living on less than $2 a day establish a credit history. In Arizona, we are applying Dynamics 365 to improve outcomes among one of the state’s most vulnerable populations — the more than 15,000 children in foster care. In Poland, MedApp is using HoloLens to help cardiologists visualize a patient’s heart as it beats — in real time — reducing the amount of time they then need to perform open-heart surgery. In Kona, Hawaii, Jack’s Diving Locker is using Microsoft 365 to connect its 50 employees across land and sea so that they can focus on what they do best — protect pristine coral reefs and take people diving. In Washington state, Karrick Johnson, an 8-year-old with dyslexia, avoided reading in class until he started using our Learning Tools. And in Cambodia, underserved children in rural communities are learning to code with Minecraft, opening doors to futures that would have previously been unimaginable.\nAcross the globe, enterprise customers in every industry — from iconic brands like Coca-Cola Company and Chevron Corporation to ZF Group, a car parts manufacturer in Germany — are using our technology to build their own digital capability so they can thrive in a world where every company is a software company. Walmart — the world’s largest company by revenue, and its biggest private employer — chose Azure and Microsoft 365 to fuel its digital transformation, transforming the shopping experience for customers and empowering their more than 2 million associates to do their best work.\nIn sum, our platforms create broad surplus everywhere, from the farmer who is able to apply precision agriculture to conserve resources and increase yields, to the hospital that is able to lower the cost of healthcare and improve patient outcomes, to the largest companies of the world reaching new customers in new markets.", "Seeing AI\nEye Control on Windows 10\nXbox Adaptive Controller\nTranslator", "13,000 students received computer science education through our TEALS program.\n12 million young people have participated in computer science learning experiences through 97 nonprofits in 54 countries.\n50,000 workers to receive access to in-demand skills and job opportunities through the Markle Foundation by 2020.\n96 million learners around the world have participated in Minecraft Tutorial sessions since 2015.", "Discover how Microsoft creates opportunities for everyone to succeed in the digital economy.\nPathways to 21st century jobs\nIn partnership with the Markle Foundation, Microsoft is helping 50,000 workers adapt to the changing workplace by providing access to in-demand skills and job opportunities. We also provide states and employers with the tools and data they need to create and sustain skills-based hiring initiatives.\nLink_55", "Employee giving \nMicrosoft employees are passionate about giving time, money, and skill to address the issues facing our world. It’s part of our culture and how we live our mission. The employee giving program focuses on giving in three \nprimary ways:\nLink_124", "Microsoft provides disclosures to help stakeholders evaluate how we’re meeting our commitments. We collect and share these reports in one place for easy reference and download..\nThe 2018 report content contains disclosures from the Global Reporting Initiative (GRI) Sustainability Reporting Standards._6\nLink_135\nLink_136", "LI_10", "LBody_31\nLBody_32\nLBody_33\nLBody_34", "Explore key resources to learn more about our engagement in the public policy process.\nA Cloud for Global Good_1\nOur policy roadmap covers a range of policy areas and provides a comprehensive set of recommendations and considerations mapped to a trusted, responsible, and inclusive cloud._0\nLink_151", "LI_11", "LBody_35\nLBody_36\nLBody_37\nLBody_38", "75% reduction in carbon emissions planned through continued carbon neutrality and energy commitments.\n$50 million over five years dedicated to getting cloud and AI tools in the hands of those solving global environmental challenges.\n100% carbon neutrality achieved by our global operations every year since 2012.\n20% reduction in product packaging weight for new devices in FY18.", "Our approach to reporting_0\nLink_192\nLink_193\nLink_194", "Microsoft Investor Relations Reports\nLink_195\nLink_196\nLink_197", "Digital trust reports_0\nLink_202\nLink_203\nLink_204", "Empowering our employees\nLink_213\nLink_214\nLink_215", "NormalParagraphStyle_277\nNormalParagraphStyle_278\nNormalParagraphStyle_279\nNormalParagraphStyle_280", "empowering our employees\nprotecting human rights\nresponsible sourcing", "Based on this analysis, the top issues include:\nLink_14\ntext_10", "The breadth and depth of our mission and the trust customers are placing in us to power their digital transformation enable us to have this broad impact — and it is fueling our results. \nIn fiscal 2018, we delivered $110.4 billion in revenue and $35.1 billion in operating income and returned $21.5 billion to shareholders through dividends and share repurchases.\nOur commercial cloud business delivered more than $23 billion in revenue, exceeding the ambitious goal we had set to achieve $20 billion in annualized commercial cloud revenue by the end of fiscal 2018, nine months ahead of schedule. In addition, we expanded our commercial cloud gross margin to 57 percent, up 7 points year-over-year.", "More than 1 million developers have already used our Cognitive Services to quickly and easily create AI applications. Our Azure Bot Service has nearly 300,000 developers, and we are driving newadvances in our underlying cloud infrastructure, building the world’s first AI supercomputer in Azure. Microsoft Translator brings AI-powered translation to developers where their data is, whether in the cloud or on the edge. Our pending acquisition of GitHub recognizes the increasingly vital role developers will play in value creation and growth across every industry, and will enable us to bring our tools and services to new audiences while enabling GitHub to grow and retain its developer-first ethos.\nGaming\nWe are pursuing an expansive opportunity in gaming — from the way games are created and distributed to how they are played and viewed — surpassing $10 billion in revenue this year for the first time. We are investing aggressively in content, community and cloud services across every endpoint to expand usage and deepen engagement with gamers. Xbox Live now has 57 million monthly active users, and we are investing in new services like Mixer — which blurs the line between watching and playing — and Game Pass, our new unlimited subscription service. The addition of five new gaming studios this year bolsters our first-party content development to support our fast-growing gaming services. And our acquisition of PlayFab accelerates our vision to build a world-class cloud platform for the gaming industry across mobile, PC and console. I’m excited about our opportunity in the fast-growing $100 billion gaming market and what’s to come.", "Cybersecurity Tech Accord\nDefending Democracy Program\nAccountGuard", "Last spring, I visited our AI School in Paris, France, which we started earlier this year to provide immersive training to help close the skills gap. Students from different backgrounds and walks of life, with no prior technical experience, are learning new data science skills. They take an intense seven month class, followed by an apprenticeship at one of our local partners — and are ready for new careers in AI and data science. While there, I met Cassandra Delage, a young entrepreneur with an ambitious dream of reimagining recycling. Her company, Plast’if, has created what might be best described as a “recycling vending machine.” You take plastic, put it in the machine, and it’s converted into a useful object you can take with you. She built it with students at the AI School, creating an ML model that recognizes the plastic, deploying it on an inexpensive computer and then integrating it with a 3-D printer — turning her novel idea into reality.\nIt’s just one example of how technology can help create new opportunity and build a better future for everyone.\nAnd it’s just the start — I could not be more optimistic about what’s yet to come. ", "Satya Nadella\nChief Executive Officer\nOctober 16, 2018 ", "Microsoft is committed to designing products and services that can be used by everyone.\nOver one billion people in the world have a disability. We’re passionate about ensuring that our products and services are designed for all people. The Microsoft Accessibility Standards are a company-wide policy that drives consideration for accessibility into every stage of production, including design, development, evaluation, and release.\nWe’ve found that many of our accessibility-focused innovations and features allow us to deliver richer, more flexible experiences for a wider range of users—not just those with disabilities. We’re committed to transparency, accountability, and inclusion in our products and our culture, and we’re deeply inspired by the opportunity to work with people across the globe to explore what’s possible.", "We’re working to ensure that everyone has access to the opportunities created by technology.\n\n\nDigital skills\nIn a world being transformed by technology, all youth should have access to digital skills. From basic digital literacy to advanced computer science, learning digital skills provides young people an opportunity to develop creativity, critical thinking, and problem-solving skills. We partner with nonprofits, governments, educators, and businesses to reach young people who are least likely to have access to computer science education. Our approach includes:", "We work with more than 150 nonprofit organizations across 60 countries to help engage over three million young people with computer science learning experiences. Together with our partners, we’re ensuring young people are ready for the future, especially those who might not otherwise have access to developing these critical skills.\nLink_49\nLink_50", "At Microsoft, we’re working toward scalable solutions and partnerships that can be replicated successfully across the globe, including our partnership with Lumina Foundation and the Credential EngineTM.\nLink_53\nLink_54", "LBody_25\nLBody_26\nLBody_27", "$1.4 billion in software and services donated to nonprofits worldwide.\n196,385 nonprofits have been served to date.\n$158 million donated by employees in 2017 (including company match).", "LI_9", "LBody_28\nLBody_29\nLBody_30", "Placing a premium on transparency and easy-to-find content, our reports hub provides a consolidated view of the reports referenced throughout this document.\nReport content and supplemental resources\nWe make it easy for our stakeholders to access, download, and share the reports relevant to their individual needs. The content below features sections of our FY18 CSR report by topic, alongside related supplemental reports and resources.", "Governance of CSR_0\nLink_190\nLink_191", "Accessibility_1\nLink_206\nLink_207", "Digital skills and career pathways_0\nLink_223\nLink_224", "Empowering nonprofits_0\nLink_225\nLink_226", "Local engagement_0\nLink_235\nLink_236", "H1", "Microsoft 2018\nCorporate Social Responsibility Report", "Empowering our \nemployees", "see our online CSR Report\nReports hub_0", "Global Reporting Initiative (GRI) Sustainability Reporting Standards\nGRI Index", "empowering our employees_0\nresponsible sourcing_0", "protecting the planet\nresponsible sourcing_1", "CSR Governance_0\nresponsible sourcing_2", "Link_8\ntext_5", "Ethics and Compliance\nStandards of Business Conduct", "Our stakeholder engagement report outlines the types of stakeholders we engage and how we engage with them in the governance of CSR, along with examples of the results they achieved.\nLink_12", "AI for Earth\nAI for Accessibility", "In partnership with Code.org and others, we encourage US states to provide access to computer science (CS) education and count CS courses toward math and science credits required for graduation.\nLink_48", "Career pathways\nAs technology transforms the world, it is also reshaping the way we work and increasing the skills gap. In the United States, nearly two-thirds of companies report having positions for which they cannot find qualified applicants, and millions are under- or unemployed. To meet the challenge, we must create a skills-based labor market that connects people and employers in new ways. Our approach includes:", "To succeed in the modern economy, workers need access to learning resources to gain the skills required for in-demand jobs. LinkedIn Learning enables lifelong learning while connecting workers to jobs.\nLink_51", "Skills-based hiring and apprenticeships help companies find and retain qualified people by increasing employer connections to skilled candidates and creating pathways for workers.\nLink_52", "Link_69\ntext_17", "Link_107\ntext_20", "Letter from our CEO_0\nLink_189", "Privacy and data security_1\nLink_205", "Humanitarian action_1\nLink_237", "Working together with \nstakeholders ", "Driving positive impact to both \nbusiness and society", "Contents", "Transparent reporting", "CSR Governance", "Letter from our CEO ", "Privacy and data security", "Accessibility", "Digital skills and career pathways", "Responsible sourcing", "Human rights", "Empowering nonprofits", "Supporting people and communities in need", "Public policy engagement", "Local engagement", "Environmental \nsustainability ", "Reports hub ", "Global Reporting Initiative Index ", "Our commitment to sustainable development", "Awards and recognition", "Link", "Our approach04Our approach to reporting06Governance of CSR08Letter from our CEO08Empowering people", "Link_0", "Strengthening communities36Empowering nonprofits39Humanitarian action41Public policy engagement45Local engagementProtecting our planet", "Link_1", "Resources", "Our approach", "Strengthening communities", "Protecting our planet", "Resources", "16", "Privacy and data security", "19", "Accessibility", "21", "Digital skills and career pathways", "25", "Responsible sourcing", "28", "Human rights", "31", "Our employees", "49", "Environmental sustainability", "54", "Reports hub", "56", "Global Reporting Initiative Index", "57", "UN SDGs", "58", "Recognitions", "04", "Our approach to reporting", "06", "Governance of CSR", "08", "Letter from our CEO", "We want to help customers make informed choices about our products and services and ensure stakeholders can evaluate our corporate social responsibility (CSR) commitments.", "To make this information consumable for many audiences, we’ve designed our report first and foremost for digital display (\n", "This report contains disclosures from the \n", "Principle 1:", "Businesses should support and respect the protection of internationally proclaimed human rights.", "Principle 2:", "Learn how we are \n", "Principle 6:", "Learn how we are \n", "Principle 7:", "Businesses should support a precautionary approach to environmental challenges.", "Principle 8:", "Undertake initiatives to promote greater environmental responsibility.", "Principle 9:", "Learn how we are \n", "Principle 10:", "Learn about our \n", "csr@microsoft.com", "We hope that you find this report valuable. We welcome your feedback about the content provided within the report and invite any recommendations on topics you’d like to see addressed in the future. Please email your feedback and comments to \n", "Empowering every person and every organization to achieve more requires careful attention to the impact of our business practices, policies, and community investments.", "charter", "The \n", "corporate governance section", "At Microsoft, our focus on corporate social responsibility fosters sustained long term business success. Our corporate governance framework, policies, and practices are described in detail in our annual proxy statement and the \n", "Details about our \n", "We know that the decisions we make affect our employees, customers, partners, shareholders, suppliers, and communities and we take their voices into account. Microsoft receives input from millions of people each year—from individual customers to policymakers and global human rights specialists. We bring outside perspectives into the company and inform our business decisions through a variety of feedback channels. We go beyond formal channels, proactively engaging with key stakeholders, advocacy groups, industry experts, CSR rating agencies, CSR-focused investors, and many others. We also share our learnings and practices thereby generating industry dialogue, informing public debate, and advancing greater progress.", "Download the report (PDF)", "Microsoft works to align our CSR commitments and CSR reporting to global standards. We base our CSR reporting on the \n", "Business for Social Responsibility", "We apply the Global Reporting Initiative (GRI) Sustainability Reporting Standards to our CSR materiality assessment to define our most significant CSR issues. Using this approach, we’ve identified the top issues. Our CSR materiality assessment reflects input gathered from our stakeholder engagement processes, consultation with \n", "Applying technology for environmental and social good", "Accessibility  ", "Climate change and energy ", "Data privacy and security ", "Empowering communities", "Ethical business practices", "Human capital", "Human rights", "Responsible sourcing and device lifecycle impacts ", "“We are grounded in creating local economic opportunity in every community, helping to unlock the power of technology to address our customers’ most pressing challenges.”", "ing ourselves to be more customer obsessed, to be more diverse and inclusive, and to operate as One Microsoft — ultimately to make a bigger difference in the world.", "CLOUD Act", "This commitment extends to instilling trust in technology across everything we do. We believe that privacy is a fundamental human right, which is why compliance is deeply embedded in all our processes and practices. We extended the data subject rights that are at the heart of General Data Protection Regulation (GDPR) to all our customers around the world, not just those in the European Union, and advocated for the passage of the \n", "Cybersecurity is the central challenge of the digital age, and we are innovating to provide end-to-end security for our customers with security operations at global scale that analyze more than 6.5 trillion security signals each day, enterprise-class technology, and broad cybersecurity partnerships for an increasingly complex and heterogeneous world. We led the \n", "We are putting AI tools into the hands of change-makers to address society’s most pressing challenges with new programs like \n", "TEALS program", "Finally, we know that the jobs of today will not be the jobs of tomorrow and are investing to provide today’s workforce and future generations with the digital skills they will need to succeed, partnering with nonprofit organizations across 54 countries to provide computer science learning experiences to millions of young people around the world and expanding our \n", "16", "Privacy and data security", "19", "Accessibility", "21", "Digital skills and career pathways", "25", "Responsible sourcing", "28", "Human rights", "31", "Our employees", "We recognize privacy as a fundamental human right. We work to preserve our customers’ ability to control their data and make informed choices to protect their privacy.", "Learn more about our privacy principles ", "Learn about our approach ", "Learn more about the council ", "Law Enforcement Requests Report", "US National Security Orders Report", "Reports hub", "2018 Global Index Reporting Initiative Index", "Learn more in the blog ", "Visit the privacy dashboard ", "Learn more about the book ", "Explore the privacy site ", "Review the statement ", "Visit the Trust Center ", "Visit the cloud policy roadmap ", "Visit our Microsoft Secure site ", "Visit the blog  ", "At Microsoft, we believe there is no limit to what people can achieve. Especially when technology reflects the diversity of its users and is accessible to all.", "Discover the new features", "We continue to push the limits of what’s possible with AI to empower empower people with disabilities through new innovations such as \n", "Explore AI for Accessibility", "Learn about our hiring programs", "Providing conformance statements", "Learn more about Trusted Tester", "Reports hub", "2018 Global Reporting Initiative Index", "Visit the accessibility site ", "Discover developer resources ", "Learn about inclusive hiring  ", "Learn about inclusive design ", "Provide accessibility feedback ", "We believe in a future where every person has the skills, knowledge, and opportunity to achieve more.", "LI_0", "LBody_8", "Strengthening the ability of nonprofit organizations and schools to offer computer science education", "Through cash grants, technology, and resources, we support in-school programs like Technology Education and Literacy in Schools (TEALS) and nonprofits like Code.org, to help increase the number of young people who have access to computer science education.", "LI_1", "LBody_9", "Bringing CS to every young person", "Get started with CS advocacy", "LI_2", "LBody_10", "Generating excitement and demand for computer science education", "Find our partners", "Learn more about our impact", "LI_3", "LBody_11", "Increasing access to learning resources", "Access LinkedIn Learning", "LI_4", "LBody_12", "Engaging employers", "Learn about Microsoft apprenticeships", "LI_5", "LBody_13", "Advocating for change", "Learn more about credentialing", "Learn more about our approach to career pathways", "Learn more about our efforts ", "Find our nonprofit partners  ", "Explore our research ", "Become a TEALS volunteer ", "Donations and volunteerism factsheet (PDF)", "Reports hub", "2018 Global Reporting Initiative Index", "Review the research ", "Learn more about digital skills ", "Explore our philanthropic work ", "Learn more about TEALS ", "Learn more about this effort ", "At Microsoft, we work to ensure that our suppliers are socially, legally, and ethically responsible—and treat the people who work for them fairly and with dignity.", "Supplier Code of Conduct", "We expect all suppliers who do business with Microsoft to uphold the human rights, labor, health and safety, environmental, and business ethics practices prescribed in our \n", "Learn more about our approach to responsible sourcing", "Analysis of risks and opportunities", "Assurance and accountability ", "Capacity building ", "Sustainable Development Goals", "Shared value and advancement of the \n", "Download FY18 program report (PDF)", "Our Social and Environmental Accountability (SEA) Academy online and mobile platform will enable us to scale learning more efficiently both internally and across our suppliers.\n", "Learn about PACT", "To identify and prioritize risk, we completed our mapping of the origination of key raw materials that are used in our complex and global upstream supply chain.\n", "Slavery and Human Trafficking Statement (PDF)", "Devices sustainability report (PDF)", "Conflict Minerals Report (PDF)", "Production Supplier List (PDF)", "Reports hub", "2018 Global Reporting Initiative Index", "Learn about the programs", "Explore our supplier standards", "Download PDF about our policy", "Learn about supplier diversity", "Learn about sustainable devices", "We aim to respect human rights in the way we do business, and to advance those rights with the power of technology.", "Learn our global human rights efforts", "Learn about our partnership", "Learn about The Future Computed", "Learn how we’re working together", "Learn about our cybersecurity efforts", "Microsoft Annual Human Rights Report (PDF)", "GNI Assessment 2015/2016 (PDF)", "Reports hub", "2018 Global Reporting Initiative Index", "Modern Slavery and Human Trafficking Statement (PDF)", "Learn more about our commitment", "Learn more about accessibility", "Learn about freedom of expression", "Find online safety resources", "Discover our approach to privacy", "Explore our latest reports", "At Microsoft, we’re focused on bringing out the best in people, supporting their goals, and allowing them to find deep meaning in their work.", "Learn more about our mission and culture", "Universal Declaration of Human Rights", "International Covenant on Civil and Political Rights", "International Covenant on Economic, Social, and Cultural Rights", "International Labor Organization (ILO) Declaration on Fundamental Principles and Rights at Work*", "Learn more about our benefits", "Learn more about global diversity and inclusion at Microsoft", "Learn more about our commitment to safe and productive workplaces", "Personalized, integrated, and relevant views of all learning opportunities on Microsoft Learning and LinkedIn Learning.", "In-the-classroom learning and sharing with learner boards. ", "On-the-job “stretch” opportunities for advancement.", "Frequent promotion opportunities.", "Coaching on career development through ongoing manager connections.", "Customized manager training to enhance coaching and mentoring skills.", "Standards of Business Conduct", "New employee orientation covering a range of topics including company values, culture, and \n", "Professionals assess the safety risks of work activities and engage with workers and management to implement safe work practices, hazard controls, and training to minimize safety risks.", "New and existing workspaces are periodically assessed to ensure they are constructed with sound design-for-safety principles and that controls are implemented effectively.", "Microsoft involves employees and managers in Health and Safety Committees specific to our datacenters, retail operations, and office locations where required. ", "Learn about the standards", "Learn more about our approach", "Review the announcement", "Learn more about Perspectives", "Learn about our commitment", "Workforce demographics", "Reports hub", "2018 Global Reporting Initiative Index", "Explore Microsoft careers", "Learn more about our approach_0", "Explore the Microsoft Life site", "Learn about inclusive hiring", "Review the statement", "Check out our stories", "36", "Empowering nonprofits", "39", "Humanitarian action", "41", "Public policy engagement", "45", "Local engagement", "Microsoft is committed to helping nonprofits advance their missions through digital transformation enabled by secure and trusted technology.", "Learn more about our nonprofit offers", "Learn more about Hack for Good", "Check out our employees in action", "Money: Our employees support a wide range of organizations they feel personally connected to, and in the United States, Microsoft matches those donations dollar-for-dollar.", "Time: Many of our employees help nonprofits and schools achieve their missions faster by donating their time and professional skills. Microsoft matches every volunteer hour with a monetary donation to the organization.", "Products: When our employees purchase our products and donate them to nonprofits, Microsoft matches these in-kind donations, amplifying the impact of our technology. ", "Explore our impact letter", "Learn more about the group", "Learn more about MTI", "Learn more about employee giving", "Donations and volunteerism data factsheet (PDF)", "Reports hub", "2018 Global Reporting Initiative Index", "Discover our philanthropic work", "Learn more about our approach_1", "Learn more about our employees", "Technology can play a critical role in helping build stronger more resilient communities following times of crisis.", "Reports hub", "2018 Global Reporting Initiative Index", "Learn more about our partnerships", "Explore our philanthropic work", "Learn more about employee giving_0", "Microsoft is proud to be recognized as an engaged leader in accountability and transparency in the public policy process.", "Review our cloud policy roadmap", "The Future Computed: Artificial intelligence and its role in society", "Advances in artificial intelligence (AI) are giving rise to computing systems that can see, hear, learn, and reason which creates new opportunities to improve education and healthcare, address poverty, and achieve a more sustainable future. However, AI also raises complex ethical questions about the impact on society including jobs, privacy, inclusiveness, and fairness. To address these issues, we’ve published \n", "Program engagement: We join corporate government affairs programs designed to educate and influence elected officials on key public policy issues related to our business. ", "Support: We give individual political employee donations through the Microsoft Political Action Committee (MSPAC). ", "Transparency: We’re transparent about data collection and use to allow users to make informed decisions.", "Collective action: We help to advance our business objectives through memberships in trade associations.", "Learn about our program", "Learn more about our approach_2", "Learn about the updated roadmap", "Learn more in the blog", "Learn more about the index", "US Federal and State advocacy spending (PDF)", "MSPAC and corporate political spending", "2018 Global Reporting Initiative Index", "Trade associations expenditures", "Visit the cloud policy roadmap", "Learn more about our principles", "Explore the latest posts", "Follow @MSFTIssues", "We engage in rural and urban communities around the globe to bring greater economic opportunities through the power of technology.", "Program engagement: We join corporate government affairs programs designed to educate and influence elected officials on key public policy issues related to our business. ", "Support: We give individual political employee donations through the Microsoft Political Action Committee (MSPAC). ", "Transparency: We’re transparent about data collection and use to allow users to make informed decisions.", "Collective action: We help to advance our business objectives through memberships in trade associations.", "Learn more about our progress", "Learn more about DigiGirlz camp", "Learn more about the partnership", "Learn more about the program", "Learn more about the Garage", "Donations and volunteerism factsheet (PDF)", "Reports hub", "2018 Global Reporting Initiative Index", "Learn more about TechSpark", "Learn about the Airband Initiative", "Learn more about TEALS", "Explore our philanthropic work_0", "49", "Environmental sustainability", "Microsoft is committed to leveraging technology to solve some of the world’s most urgent environmental issues—focusing on areas where we can have the most positive impact.", "Learn more about our approach_3", "Learn more about our program", "Learn more about our commitment_0", "Learn more about our products", "Learn more about this project", "Learn about our cloud", "Learn more about AI discoveries", "Learn more about the pilot", "Learn more about our program_0", "Learn more about energy efficiency", "Download our Devices Sustainability Report (PDF)", "Environmental Sustainability Data Factsheet (PDF)", "2018 CDP Climate Change Response (PDF)", "2018 CDP Water Response (PDF)", "Reports hub", "2018 Global Reporting Initiative Index", "Devices Sustainability at Microsoft (PDF)", "Explore our environment site", "Visit the Green blog", "Download PDF of our response", "Get details about our efforts", "Download PDF of our policy", "54", "Reports hub", "56", "Global Reporting Initiative Index", "57", "UN SDGs", "58", "Recognitions", "Our approach", "Letter to Shareholders, CEO Satya Nadella", "Governance of CSR summary", "Stakeholder Engagement (PDF)", "Our approach to reporting summary", "GRI Standards Index", "UN Global Compact Communication on Progress", "Microsoft Proxy Statement", "Microsoft Annual Reports", "Microsoft SEC Filings", "Subsidiaries", "Operation centers", "Financial data", "Employment information", "Law Enforcement Requests Report online summary", "U.S. National Security Orders Report online summary", "Content Removal Requests Report online summary", "Privacy and data security summary", "Accessibility summary", "Microsoft Accessibility Conformance Reports", "Human rights summary", "Microsoft Annual Human Rights Report (PDF)", "Microsoft Report on the GNI Independent Assessment 2015/2016 (PDF)", "GNI Annual Report", "Microsoft Response: Business and Human Rights Resource Center", "Empowering our employees summary", "EEO-1 Report 2016 (PDF)", "Workforce demographics", "Responsible sourcing summary", "Responsible Sourcing of Raw Materials Policy (PDF)", "Top 100 Production Suppliers (PDF)", "Devices sustainability report (PDF)", "Conflict Minerals Report (PDF)", "Microsoft Slavery and Human Trafficking Statement 2017 (PDF)", "Monitor Prison Labor PDF", "Digital skills and career pathways summary", "Data factsheet: Donations and volunteerism (PDF)", "Empowering nonprofits summary", "Data factsheet: Donations and volunteerism (PDF)", "Public policy engagement summary", "Advocacy and Trade Memberships 2017 (PDF)", "MSPAC State Candidate Contributions H1 2018 (PDF)", "MSPAC Federal Candidate Contributions H1 2018 (PDF)", "MSPAC Non-Candidate Committee Contributions H1 2018 (PDF)", "Microsoft Corporate Political Contributions H1 2018 (PDF)", "Public policy advocacy spending (PDF)", "Microsoft Cloud policy roadmap", "Local engagement summary", "Data factsheet: Donations and volunteerism (PDF)", "Humanitarian action summary", "Environmental sustainability summary", "Environmental sustainability data factsheet 2017 (PDF)", "Devices sustainability report (PDF)", "CDP Climate Change Response (PDF)", "CDP Water Response (PDF)", "CDP Climate Reports – CDP.net", "CDP Water Reports – CDP.net", "Link_245", "Download Microsoft 2018 GRI Standards Content Index", "The Global Reporting Initiative (GRI) provides corporations with a framework to guide their Corporate Social Responsibility (CSR) reporting. The GRI Index is based on input from a wide range of civil society organizations, labor groups, businesses, academic institutions, and other experts. \n The 2018 Microsoft CSR report Global Reporting Initiative (GRI) Sustainability Reporting Standards", "Sustainable Development Goals (SDGs)", "We believe in the power of technology to drive a positive business and societal impact, enabling a range of economic and social opportunities around the world. With this understanding, we have embraced our shared responsibility with the private, public, and civic sectors to accelerate progress and lead towards sustainable development. Our partnerships and investments with the United Nations and other nonprofits around the world are testimony to the role we play in advancing an agenda of inclusion that contributes towards achieving the 17 global \n", "Learn more", "Learn more_0", "Learn more_1", "Learn more_2", "Learn more_3", "Learn more_4", "Learn more_5", "Learn more_6", "Learn more_7", "Learn more_8", "Learn more_9", "Learn more_10", "Learn more_11", "Learn more_12", "Learn more_13", "Letter from our CEO adfasdf", "Principle 3:", "Principle 5:", "Principle 4:", "Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining.", "The effective abolition of child labor.", "The elimination of all forms of forced and compulsory labor.", "About our report", "Standards", "UN Global Compact Index", "Share your feedback", "We see the big picture", "Stakeholder engagement report ", "Aligning our values", "Opportunity and impact", "Results and progress", "Trust and responsibility", "Empowering people", "Our commitment and approach", "FY18 highlights", "FY18 reporting resources", "Get the bigger picture", "Our commitment and approach", "FY18 highlights", "FY18 reporting resources", "Get the bigger picture", "Impact at a glance", "Our commitment and approach", "FY18 highlights", "FY18 reporting resources", "Get the bigger picture", "Our commitment and approach", "FY18 highlights", "FY18 reporting resources", "Get the bigger picture", "Our commitment and approach", "FY18 highlights", "FY18 reporting resources", "Get the bigger picture", "Our commitment and approach", "FY18 highlights", "FY18 reporting resources", "Get the bigger picture", "Impact at a glance", "Our commitment and approach", "FY18 highlights", "FY18 reporting resources", "Get the bigger picture", "Our commitment and approach", "FY18 highlights", "FY18 reporting resources", "Get the bigger picture", "Our commitment and approach", "FY18 highlights", "FY18 reporting resources", "Get the bigger picture", "Our commitment and approach", "FY18 highlights", "FY18 reporting resources", "Get the bigger picture", "Impact at a glance", "Our commitment and approach", "FY18 highlights", "FY18 reporting resources", "Get the bigger picture", "Empowering people", "Strengthening communities", "Protecting our planet", "Human Rights", "Environment", "Anti-corruption", "Labor", "Last updated October 23, 2018", "Our approach", "Our approach", "Our approach", "Our approach", "Our approach", "Our approach", "Our approach", "Our approach", "Our approach", "Our approach", "Our approach", "Empowering people", "Empowering people", "Empowering people", "Empowering people", "Empowering people", "Empowering people", "Empowering people", "Empowering people", "Empowering people", "Empowering people", "Empowering people", "Empowering people", "Empowering people", "Empowering people", "Empowering people", "Empowering people", "Empowering people", "Empowering people", "Empowering people", "Strengthening communities", "Strengthening communities", "Strengthening communities", "Strengthening communities", "Strengthening communities", "Strengthening communities", "Strengthening communities", "Principles for Engagement in the Public Policy Process in the United States", "Microsoft has adopted \n", "Strengthening communities", "Strengthening communities", "Strengthening communities", "Strengthening communities", "Strengthening communities", "Protecting our planet", "Protecting our planet", "Protecting our planet", "Protecting our planet", "Resources", "Resources", "Resources", "Resources", "Resources", "Resources", "Resources" ]

[ "Table_5", "TBody_5", "TR_5", "TD_22\nTD_23\nTD_24\nTD_25\nTD_26\nTD_27", "LI_28\nLI_29\nLI_30\nLI_31\nLI_32\nLI_33\nLI_34", "Microsoft’s mission is to help people and businesses around the world realize their full potential. Our Citizenship work plays a vital role in delivering on that mission as we apply our technology expertise and resources to help solve societal challenges on both a global and a local scale. \nServe globally the needs of communities and fulfill our responsibilities to the public.\nIn 1975 Microsoft was an unknown software company with a single product and the promise of delivering on a new way of computing. We have since grown to become one of the largest companies in the world. With that growth comes the responsibility to contribute positively to society on a global scale. \nWe do so in two ways: Serving Communities and Working Responsibly. \nAs a company, we have a responsibility to help create social and economic opportunities wherever we work, live, and do business. Microsoft works with partners to create social opportunity by applying technology to a range of pressing social issues. These include supporting nonprofits, education, humanitarian needs, healthcare, and energy and environmental sustainability. Technology also fosters economic opportunity and creates jobs. Through our core business and through global programs, we work to strengthen local economies by supporting workforce development, IT infrastructure, research, innovation, and access to technology.\nWe employ exceptional local people around the world; we use our skills to serve local needs, especially in education; and we support local organizations, customs, and cultures. In return for our efforts, we are able to benefit from diverse talent, become part of local economic life, and participate positively in the community.\nCitizenship at Microsoft is also about the way we work every day—about the values we bring to our business practices and operations. We seek principled approaches to how we conduct our business that uphold our responsibilities to the public. Those responsibilities manifest themselves in our Citizenship activities and encompass everything from adding features that make our products more accessible to those with disabilities to how we manage our suppliers to how we communicate with and engage the full range of stakeholders.\nOur commitment to responsible business practices is foundational to who we are as a company and specific information related to our work in various categories (responsible sourcing, online privacy and safety, environmental sustainability, governance, et al) is provided in this report. \nHowever, there is one critically important issue —human rights—that spans all categories. In June 2011, the United Nations Human Rights Council endorsed new Guiding Principles on Business and Human Rights. This decision represented a significant milestone in the history of business and human rights. More clarity exists today than ever before on governments’ duty to protect human rights and the responsibility business has to respect human rights. As a result of this development, we will be focused in FY12 on the key human rights questions now faced by companies. Those questions relate to how companies (specifically Microsoft) should apply the UN Guiding Principles to our business strategy and operations. \nAs noted elsewhere, Microsoft endorses the United Nations Declaration on Human Rights, as a signatory to the United Nations Global Compact (UNGC), and we will use both the Declaration and UNGC to inform and guide our work in developing a holistic approaching meeting our human rights responsibilities within the context of the newly endorsed Guiding Principles. \nIn particular, our work is informed by and aligned with internationally recognized priorities and frameworks, such as the United Nations Global Compact and the United Nations Millennium Development Goals. We seek to align our Citizenship reporting to the Global Reporting Initiative’s G3 Sustainability Reporting Guidelines. \nIn FY2011, we initiated planning to evolve Microsoft’s Citizenship approach, which we will refine over the course of FY2012. This represents the third generation of Citizenship at Microsoft over the past dozen years, and it continues to support our corporate mission to help people and businesses around the world reach their full potential. \nTo enhance our commitment to working responsibly, in FY2012 we are conducting an in-depth review to assess and further strengthen our work to promote responsible business practices across our supply chain. We are also sharpening our work to serve communities, where we are launching a new set of programs focused on providing opportunities for youth. In addition, we are developing a more focused engagement with the product and business groups to support efforts to serve communities through technology.\nMicrosoft will continue to work to expand its commitment to transparency. We have made progress in this year’s Citizenship Report, and we plan to build on this by setting clearer forward-looking goals in our FY2012 Citizenship Report. As always, we have an ongoing commitment to engage with our stakeholders, and we welcome input and feedback on how we are performing and how we are communicating.\nLink_25\ntext", "LI_54\nLI_55\nLI_56\nLI_57\nLI_58", "Microsoft programs have a focus on helping youth and young adults around the world obtain the skills that they need, connect them to opportunities, and support them in pursuing their dreams. We have the unique ability through technology and partnerships to make education and learning more accessible and more engaging for them. \nTogether with our partners, we reached nearly 16 million students and teachers through Partners in Learning in FY2011, and we have reached nearly 210 million since 2003.\nProviding problem-solving software: We made it easier for schools to adopt Microsoft Mathematics 4.0, a program that helps students tackle math and science challenges, by providing it at no charge.\nSupporting STEM policies and programs: Microsoft has joined the STEM Ed Coalition, a U.S. bipartisan group that aims to educate federal policymakers on the critical role that STEM education plays in competitiveness. We also continued our membership in Change the Equation, a joint effort of the Obama administration and corporate CEOs to improve STEM education in the United States. \nInvesting in STEM education in Washington State: In FY2011 we helped found Washington STEM, a nonprofit that is dedicated to advancing innovation, equity, and excellence in STEM education in Washington State. Microsoft also pledged $25 million to the Washington Opportunity Scholarship Program to help increase the number of Washington State students who earn bachelor’s degrees, particularly in STEM fields.\nLink_41\ntext_6\nLink_42\ntext_7\nLink_43\ntext_8\nLink_44\ntext_9\nLink_45\ntext_10\nLink_46\ntext_11", "Table_8", "TBody_8", "TR_8", "TD_42\nTD_43\nTD_44\nTD_45\nTD_46", "Unless otherwise stated, information in this report is related to fiscal year 2011 (July 2010 to June 2011). \nAs part of Microsoft’s global Citizenship initiative, this report covers Microsoft nonfinancial performance and impact in FY2011 across our global operations. \nThe report covers our material Citizenship issues based on internal assessments, ongoing engagement with stakeholders ranging from socially responsible investors to our own employees, and requests for information by corporate responsibility rating agencies. In particular, this year we conducted a gap analysis between the information provided in our FY2010 Citizenship Report and the information requests that we received from stakeholders during FY2011 to enhance the information provided.\nAs we committed to in our FY2010 Citizenship Report and based on feedback from our various stakeholders, we solicited external perspectives as part of this year’s reporting process. In this year’s report, seven external experts contributed their comments on the issues that affect Microsoft’s business through “Viewpoint” columns in select sections. These experts did not participate in the writing or reviewing of the report itself. \nLinks are provided throughout the report for more detailed information. \nThis report was released at the same time that the Microsoft FY2011 Annual Financial Report was released. These reports complement each other and together provide a full picture of Microsoft over the past year. \nAlthough these two reports are one of the most important ways that we report to our stakeholders, there are many other ways in which we report on our actions throughout the year. These include:\nLink_93\ntext_61\nLink_94\ntext_62\nLink_95\ntext_63", "LI_35\nLI_36\nLI_37\nLI_38", "LI_39\nLI_40\nLI_41\nLI_42\nLI_43", "Table_2", "TBody_2", "TR_2", "TD_13\nTD_14\nTD_15\nTD_16", "LI_59\nLI_60\nLI_61\nLI_62", "Table", "TBody", "TR", "TD\nTD_0\nTD_1\nTD_2", "Table_0", "TBody_0", "TR_0", "TD_3\nTD_4\nTD_5\nTD_6", "Table_3", "TBody_3", "TR_3", "TD_17\nTD_18\nTD_19\nTD_20", "LI_2\nLI_3\nLI_4", "Product design can play a major role in helping protect users and giving them greater control. \nFY2011 Products: Examples of new Microsoft products designed for privacy and safety include:\nAs we committed to in our FY2010 Citizenship Report, we focused on teaching people online safety techniques in FY2011. \nSafer Internet Day: For the ninth year, we worked with partners to celebrate Safer Internet Day. More than 1,000 Microsoft volunteers visited schools around the world and, together with local partners, helped teach more than 100,000 parents, teachers, and students about online safety—up from 50,000 reached on Safer Internet Day 2010. \nData Privacy Day: We celebrated global Data Privacy Day by providing consumers with guidance on how to more safely use mobile phones and other devices. \nSafety and Security website: We launched a new Safety and Security website for customers that provides access to tools and guidance about online safety and security. The website serves more than 1 million customers a month. \nWorking with law enforcement and government: We work with law enforcement and government around the world to help fight cybercrime. For example, in FY2011 we worked with the European Commission to create 2CENTRE, a program to build the capacity of European countries to fight cybercrime. 2CENTRE will officially launch in FY2012 and will operate for two years. In FY2011 we also launched the Digital Crimes Community Portal, an online portal where Microsoft and members of the law enforcement and security communities can share intelligence on digital crime. \nWorking with partners: We work with peers in the technology industry to figure out new ways to fight digital crime. In FY2011, we worked with Facebook as they implemented PhotoDNA to help identify illegal images of the worst-known child pornography online from the more than 200 million images uploaded to Facebook every day. We also partnered with the DNA Foundation to form a technology task force to explore new ways that the technology industry can help fight child sexual exploitation and trafficking. \nLink_76\ntext_43\nLink_77\ntext_44", "LI_50\nLI_51\nLI_52", "LI_8\nLI_9\nLI_10", "Strengthened our Vendor Code of Conduct: We require all of our suppliers to follaow our Vendor Code of Conduct. As we committed to in our FY2010 Citizenship Report, Microsoft significantly strengthened our Vendor Code of Conduct in FY2011. This was our first major update to the code in three years and gave us the opportunity to address emerging issues of concern. Changes included:\nWe communicated the changes in the code to our global supply base. The new code went into effect as of the beginning of FY2012.\nMonitoring priority suppliers based on risk and compliance records: All of the final assemblers of our hardware and all high-and medium-risk suppliers have undergone human rights pre-contracting and ongoing screening. In FY2011 about 80 significant suppliers underwent human rights risk assessment and monitoring. Overall, monitoring found no instances of child labor or forced labor. It did find six non-conformances to our non-discrimination policies. Of these, three were escalated to senior management and were placed on restricted status (meaning that they could not be awarded any new Microsoft business). A corrective action plan was reviewed and approved in all six cases.\nConducting supply-chain–wide third-party anticorruption assessments: We conducted third-party risk assessments of our entire database of vendors to screen for corruption risk factors and found we had a risk rate of about half the industry average. We also identified about 100 vendors out of our more than 60,000 suppliers that were not sufficiently implementing anticorruption practices; we either ended those relationships or took corrective action.\nTraining suppliers: We engaged and trained our direct material suppliers on the Vendor Code of Conduct to ensure compliance, particularly with the human rights standards. \nInitiated a new grievance process: We collaborated with the Fair Labor Association and Clear Voice Hotline to give workers in our supply chain access 24 hours a day, 7 days a week, to a hotline that allows anonymous reporting of grievances and issues of concern. \nAdhering to new regulations: In FY2011 the United States passed the Dodd-Frank Wall Street Reform and Consumer Protection Act, which requires companies to disclose whether their products use minerals from conflict zones, such as the Democratic Republic of the Congo. We are working with our suppliers to trace the source of all minerals used in our products that could potentially come from conflict zones. We proactively encourage responsible sourcing of minerals and collaborate with industry peers, such as the Electronics Industry Citizenship Coalition, to help the entire industry’s supply chain be free of conflict minerals. \nStaying “on track”: Our efforts to prevent conflict minerals from entering our supply chain were ranked against other electronics companies in December 2010 by the Enough Project, and \nMicrosoft was rated as “on track.” We will continue to work with our industry peers to stay on track. \nSetting environmental standards: We address environmental issues with our suppliers in many ways, from measuring the greenhouse gas emissions of our Tier 1 contract hardware manufacturers and requiring that the computers we buy meet the Gold level requirements of the Electronic Product Environmental Assessment Tool (EPEAT) to seeking more locally sourced and organic food for our cafeterias. \nImplementing environmental purchasing initiatives: In FY2011, our environmental purchasing initiatives included:\nIn FY2011 we spent more than US$1 billion \nwith suppliers that are woman-owned, minority-owned, or veteran-owned. This puts us among \nthe top 15 companies worldwide in supplier \ndiversity spending. ", "LI_63\nLI_64\nLI_65\nLI_66", "To Our Stakeholders: \nWe’ve always believed that technology creates opportunities for people and organizations to achieve their dreams. This belief continues to drive us towards new inventions and new markets so we can impact the lives of billions of people around the world.\nThis report shares some of the important work we’re doing in our communities, and our efforts to manage a responsible business. It explains our Citizenship actions in fiscal year 2011 and together with our annual financial report gives a complete picture of our work and highlights our focus for the year ahead. \nOur Citizenship work supports our mission—to help people and businesses throughout the world realize their full potential. It is reflected in the frequent and candid interactions we have with our stakeholders—employees, shareholders, customers, suppliers, partners, and neighbors—all critical to a responsible and sustainable business.\nThe impact we have made through our Citizenship initiatives during the past year spanned disaster relief to education. For example, we developed new ways to help teachers and schools use technology to make learning more engaging. We created a new system that supports volunteerism by matching employees with nonprofits in need based on their skills. We were also honored to partner with the organizations in Japan to deploy our cloud technologies to help those affected by the earthquake and tsunami get the critical information and help needed as part of the relief and recovery efforts. \nAt Microsoft, we believe that hope rests in the steady progress toward the future and we are driven to support new businesses and learning opportunities for people around the world. This year alone, we equipped 75,000 people with software to grow their small business through our BizSpark program. We also reached 23 million people through the Community Technology Skills Program. And our Partners in Learning program, now in its ninth year, worked with schools and governments to spread teachers’ ideas for how to use technology to create more dynamic classrooms. \nWe also remain committed to operating our business responsibly. You will read in this report some of the steps we’ve taken to strengthen our supply chain, monitor and \nmanage our environmental footprint, promote human rights, and continue our leadership in corporate governance, compliance, and political involvement. As a signatory of the \nUN Global Compact, each of these areas is part of that commitment. But even more \nimportantly, each of these makes our business stronger and more resilient to a world \nthat changes rapidly. \nAs we enter a new year, I am optimistic that the ideas, passion, and tenacity that are central to our Citizenship will continue to create value for our business and for the people and communities we touch. Thank you for your interest in Microsoft. We welcome your thoughts and suggestions.\nSincerely,\nSteven A. Ballmer\nCEO, Microsoft Corp. ", "LI_5\nLI_6\nLI_7", "LI_21\nLI_22\nLI_23", "Developing cloud products: Microsoft continued to develop cloud solutions, such as Microsoft Office 365, which help customers use less energy. \nReducing the energy use of computers: We released Microsoft System Center Configuration Manager 2007 R3 (SCCM R3), a tool that can help information technology departments better manage computer energy use.\nProviding guidance for IT decision makers: We published a white paper to assist technology decision makers in increasing the energy efficiency of their operations by highlighting best practices for energy efficiency. \nDeveloping environmental tracking software: Microsoft launched Environmental Sustainability Dashboard for Microsoft Dynamics® AX 2012, an update to our 2009 Dashboard. The updated Dashboard helps users track not only carbon emissions, but also water and waste data, to help them make more informed decisions about their resource use. \nHelping drivers track their energy use: We partnered with automakers such as Toyota and Ford to provide technologies for cars that enable drivers to track and reduce their power consumption.\nImproving energy management: Microsoft collaborated with companies—including Alstom Power, Johnson Controls, and Sensus Machine Intelligence—to improve the management and measurement of energy in buildings, data centers, and entire cities. \nMinimizing our carbon footprint: We continued to work with organizations such as the Green Grid to reduce the carbon footprint of the information and communications technology industry and to optimize computing resource use and efficiency. \nSetting industry goals: We co-chaired a working group of the ICT4EE forum in the European Union to develop methodologies, policy solutions, and energy reduction targets for the information and communications technology industry.\nWorking with governments: Together with a coalition of information and communications technology companies, we announced the Guadalajara ICT Declaration for Transformative Low-Carbon Solutions. The declaration commits our industry to working with governments to use information technology to reach emission targets. \nLink_72\ntext_37", "Engaging leadership: FY2011 was the first year we made a freedom of expression risk analysis—based on GNI principles—part of our Board’s Audit Committee annual risk analysis review of the company. The committee did not identify any immediate remedial steps, but it did recommend that the issue continue to be monitored.\nIn some cases, we can design our products to help protect online freedom of expression. Features in the Bing® design minimize the impact of government demands by enabling restrictions of content only for users in the market that issues the restriction and who use the version of Bing tailored to that market. In FY2011, we also created internal processes and tools to help ensure that government content removal requests are handled consistently with our new Freedom of Expression policy. \nAs part of our due diligence approach, we become aware of situations in which free expression issues could arise. The following are some examples of issues that came up in FY2011 and how we responded. \nPolitical change in the Middle East: In early 2011 there were uprisings against incumbent governments in Tunisia, Egypt, Syria, Yemen, and other countries/regions. Microsoft believes that, ultimately, the choice of government is for the people of those countries/regions to make. However, we also believe that we have a role to play through our technology in helping those people use technology for civic engagement and to foster more sustainable societies.\nSince the change in governments in Egypt and Tunisia, Microsoft has contributed to reform efforts. For example, we have supplied e-case and data management software to three Tunisian government commissions that are managing reform efforts: Human Rights Abuse Commission, Political Reform Commission, and Stolen \nAssets Commission. \n\nIn Egypt, where youth unemployment has been an ongoing issue, Microsoft has increased its investment in programs that support entrepreneurship and job creation. We are employing a multi-stakeholder initiative, Egypt Works, to design and finance job creation and training programs to help youth graduates become better qualified with the skills that they need to enter the workforce.\n\nMicrosoft is also reaching out to nonprofit organizations to support relief efforts in humanitarian disasters and to support capacity building for this sector, which is vital to the rebuilding of the country. Recently more than 300,000 people fled the crisis in Libya and resettled in Egypt, where they found limited support and unemployment challenges were already pressing. Microsoft Egypt developed a simple cloud-based database to enable the International Organization for Migration to track returnees to Egypt from Libya and to reach out to provide direct assistance to them.\nLink_80\ntext_48\nLink_81\ntext_49\nLink_82\ntext_50", "Advocacy: In compliance with regulations and our commitment to transparency, Microsoft regularly files reports that detail our advocacy activities. Our disclosures include consultant fees, lobbying expenses, and trade association dues spent on advocacy. \nMicrosoft amended these principles in June 2010 to clarify that Microsoft will not make independent political expenditures or electioneering communications as are now permitted after the U.S. Supreme Court’s decision in the Citizens United case. \nContributing to U.S. political candidates: \nThe Microsoft Political Action Committee (MSPAC) provides opportunity for Microsoft employees and shareholders to participate in the U.S. political process and jointly support public policy positions that are important to Microsoft and the software industry. MSPAC is a bipartisan organization that contributes to the campaigns of federal, state, and local candidates. MSPAC typically supports candidates who share Microsoft views on public policy, serve as congressional or legislative leaders, represent districts or states where Microsoft has a major business presence, or serve on committees that have jurisdiction over legislation that is important to the company. For the last calendar year (2010), MSPAC made political contributions totaling $1,472,350.\nIn addition to the contributions made by MSPAC, Microsoft as a company contributed $107,400 to state and local political campaigns in calendar year 2010. \nMicrosoft does not support political candidates or campaigns outside of the United States. \nLink_85\ntext_53\nLink_86\ntext_54\nLink_87\ntext_55", "Strong leadership in corporate citizenship is invaluable. In recognizing the importance of accountability and responsibility, companies commit to live by them by developing Codes of Ethics or Conduct, and they demonstrate that commitment by reporting on their compliance with them. \nUnless a commitment to integrity is widespread, and a zero-tolerance approach enforced, companies face the risk that an employee or partner company will break trust and flout the rules to win business through bribery. \nCompliance guidelines have become more common in the business world—more than four in five companies have a formal compliance programme, according to a recent KPMG survey. To make the code a practical part of a business, companies need to provide training programmes that are dedicated to helping staff. There is no lack of practical guidelines that help train personnel. \nThe true test of compliance is whether it happens where it is most needed: on the front line. A Code of Conduct gets a passing grade only after a culture of integrity, transparency, and accountability permeates an organization, from top to bottom.\nLink_89\ntext_57\nLink_90\ntext_58", "LI_67", "LBody_217\nLBody_218\nLBody_219\nLBody_220\nLBody_221", "Technology helps nonprofits reduce costs, \nboost productivity, raise funds, and deliver \nnew and improved services to their local communities. Microsoft has a longstanding commitment to ensuring that technology is accessible to nonprofits around the world, bringing the benefits of technology to local communities.\nWe are proud to work with thousands of nonprofits around the world to get them access to the technology that they need and train them how to use it.\nDonating software: In FY2011 we donated more than $844 million in software to 46,886 nonprofits in 113 countries/regions. The value of software that we have donated globally since 1998 is more than $3.9 billion. The FY2011 value of software donated now includes employee software donations; previous years’ in-kind giving \nnumbers do not.\nEquipping refurbished computers: In FY2011 we supplied 417,030 copies of Windows® and 184,080 copies of Microsoft Office to partners that offer refurbished computers to nonprofits, schools, and technology access programs. \nProviding software licensing: In FY2011 authorities in Russia were reported to have used charges of pirating Microsoft software as a means to confiscate computers and challenge nonprofits. To help protect the freedom of expression of nonprofits and their access to technology, we established a program that allows nonprofits in certain countries/regions** to license their existing Microsoft software for free. The policy will extend through January 1, 2013.\nHosting NGO Connection Days: In FY2011 Microsoft held more than 100 NGO Connection Days, training more than 6,200 nonprofits in \n62 countries/regions on how to use technology to build their capacity and serve more people. \nOffering technology webinars: We hosted webinars twice a month, at no charge, to help more than 750 nonprofit professionals around \nthe world learn about a variety of technology topics, including cloud computing, collaboration through Microsoft SharePoint®, and managing donors and volunteers with CRM. \nTraining nonprofit leaders: We worked with \nNonprofit Technology Network (NTEN) to train 100 nonprofit leaders to more effectively manage information technology within their organizations.\nLink_57\ntext_22", "LI_18\nLI_19\nLI_20", "To achieve our goal to reduce carbon emissions per unit of revenue by 30 percent by 2012 (calendar year) compared with 2007, we are focusing on the three key areas of our business operations that have the greatest potential for emissions reductions: data centers, travel, and facilities.\nOur data centers still need to become more efficient to accommodate the cloud, but we are making progress. \nIn 2010, corporate travel increased over 2009, leading to a rise in air travel emissions. This was a result of the recovering economy. (This data is provided on a calendar rather than fiscal year basis because it is part of our public reporting to the Carbon Disclosure Project.) Trips meant to be taken in 2009 were postponed to 2010, making for higher 2010 travel emissions. Despite this increase, we made some progress in keeping travel emissions down.\nIn FY2011 we increased our total waste diversion rate to more than 80 percent overall and 95 percent within our dining services.\nIn our FY2010 Citizenship Report, we committed \nto enhancing our global tracking systems. \nOver the past year, we: \nLink_68\ntext_34\nLink_69\ntext_35", "LBody_152\nLBody_153\nLBody_154\nLBody_157", "Supporting web standards: With the release of Windows® Internet Explorer® 9, we published more than 40 documents that explain its support for web standards, as required by the European Undertaking. No other browser vendor provides this depth of documentation regarding use of web standards. \nAcquiring Skype: Our acquisition of Skype was cleared by the U.S. Department of Justice in June 2011 and will be reviewed in other jurisdictions over the coming months. We believe the \nmerger will enhance competition and bring a range of new communication services and choices to people around the world. \nResponding to the i4i ruling: In June 2011 the U.S. Supreme Court ruled in favor of the Canadian company i4i, which claimed that Microsoft violated certain patent rights related to an XML technique that was implemented in Microsoft Word. Although Microsoft’s arguments were supported by Apple, Facebook, Cisco, and many other leading companies, the U.S. Supreme Court ruled that the i4i innovation was patentable, enforcing a $290 million award against Microsoft.\nWe have continued to comply with antitrust rulings and applied principles that support innovation, choice, and opportunities for developers in the development of new products and services. On May 12, 2011, the U.S. Consent Decree that ended the competition lawsuit against Microsoft in the late 1990s reached its termination date. The U.S. Department of Justice, various state attorneys general, and the court overseeing compliance concluded that no further extensions were warranted and that Microsoft had met its obligations under the decree, including its documentation obligations for various Windows protocols. The experience under these orders has shaped how we view our responsibilities and how we compete fairly in the market.\nA broad range of competition exists in the market today. That includes new operating systems from Apple, Google, and other software developers for all kinds of devices, including PCs and smartphones. \nIn FY2011, more than 99 percent of Microsoft employees received training on our Standards of Business Conduct, which includes topics such as anticorruption, conflicts of interest, and financial integrity. This training was delivered in eight languages. It is authorized by our Board of Directors and is filed publicly with the U.S. Securities and Exchange Commission and NASDAQ. \nEach year, a survey measures employee satisfaction with the training provided. The FY2011 survey showed that employees were extremely satisfied with the training, scoring the program 167 out of 200. This was broadly consistent with the score achieved in 2010.\nWe work with industry peers and global organizations to promote good governance and compliance practices. Our achievements have included:\nLink_88\ntext_56", "Technology is a driver of economic growth. For example, small and medium-sized businesses that heavily use the cloud grow and export twice as much as those that don’t.1\nMicrosoft and our partners have the responsibility and opportunity to help maximize the economic growth that technology can generate. It’s good for our business and good for our communities to support small businesses, provide job skills training, and create new technologies that will give rise to new industries.\nCreating jobs and businesses: The technology sector is an engine of economic growth. Worldwide, jobs in the technology sector increased to more than 38 million in 2011. But what is more important is the growth that technology enables in other sectors. A recent study found that creation and use of Internet technologies contributed 7 percent growth in gross domestic product (GDP) in mature and emerging markets in the past 15 years and 11 percent in the past five.1 We believe that our investment in cloud computing will bring the benefits of technology to more users at lower costs, stimulating the creation of new businesses and nurturing the longevity of others.\nIn today’s workplace, most employers demand that their employees have a high comfort level with technology. We continued to heavily focus on providing people with the technology training that they need to get and keep good jobs. Through our programs and partnerships, in FY2011 Microsoft provided technology skills training to approximately 23 million people around the world, reaching more than 190 million since 2003.\nOur Microsoft Elevate America program provides technology skills training and resources to help people in the United States find employment. Through this program, we reached more than 1 million people in FY2011. \nIn FY2011, we also announced the Microsoft Elevate America Veterans Initiative. This is our commitment to contribute $2 million in cash and up to $6 million in software over the next two years to support programs for members of the U.S. armed services and their spouses who are separating from the military and reintegrating into their civilian communities and the work force.\nThrough Microsoft BizSpark®, we provide start-up businesses with access to technology, business and technical support, and marketing and networking opportunities with experienced members of tthe entrepreneurial community. In FY2011, we reached more than 75,000 people worldwide through BizSpark, up from 40,000 in FY2010, and we worked with about 45,000 new start-up businesses. Of these companies, about two-thirds were outside the United States. In FY2012, we will work to improve the success and survivability rate of start-up companies that participate in the program.\nLink_52\ntext_17", "LI_11\nLI_12\nLI_13", "Table_11", "TBody_11", "TR_11", "TD_59\nTD_60\nTD_61", "LI_25\nLI_26\nLI_27", "In its pilot year, the Redmond Net Impact chapter was led by four dynamic employees from across the business. \nJasdeep Garcha\nProgram Manager, \nWindows Core Kernel\nPresident, Microsoft Net Impact\n“I’m proud to have the opportunity to lead this organization in its pilot year, and have no doubt it can sustain momentum at Microsoft for a very long time.”\n\nHimani Naresh\nGroup Finance Manager, \nOEM Finance\nCo-Chair of Microsoft Net Impact\n“I was looking for an outlet to channel my professional skills and my passion for technology in a way to help make Microsoft a better global citizen. We have over 90,000 employees at this great company and together we can be an army of change!”\n\nCharles Thrasher\nProgram Manager, \nSMB Advertising\nCo-Chair of Microsoft Net Impact\n“I want to become part of the solution rather than the problem, to reimagine what business can contribute to the greater good, the potential of all rather than a few, and I think Microsoft is the place to begin. We’ve changed the world before.”\n\nEnrico Toro\nSenior Product Marketing Manager, \nWindows Server and Management\nMarketing\nCo-Chair of Microsoft Net Impact\n“I always believed that we leave our mark in life by making the world a little better place than what we found, and I believe this is true of individuals and corporations. When Net Impact gave me the possibility to work with similarly minded individuals to do something good together I couldn’t say no.”", "Since the Taproot Foundation launched eight years ago we have succeeded in changing the game and substantially redefining service. Now, 1 million hours of pro bono service later, we have provided more than US$90 million dollars of consulting services to nonprofits working to tackle the toughest problems our society faces. \nWe have pioneered the spread of the pro bono ethic—“give what you know”—to a point where the movement is poised to attain critical mass. Twenty of the top 25 business schools in the United States have pro bono programs, and in the corporate sector pro bono is quickly becoming an integrated practice. Our six-year partnership with Microsoft has helped to bring us to this juncture. \nThe next critical step is ensuring the pro bono marketplace is sufficiently large and accessible for the 79 percent of nonprofits that have an identified need but can’t access a supply of skilled volunteers. \nWe applaud Microsoft for three tremendous initiatives they’ve supported, working with us to close this gap. \n• The development of Volunteer Profile Standards, creating a consistent taxonomy for coding volunteer skills. Already, Points of Light and other industry leaders have agreed to incorporate the results, smoothing the way for collaboration across the marketplace. \n• Creation of a large-scale skills-based volunteering program for their workforce, highlighting their own commitment to pro bono and continuing to expand the marketplace. \n• Development of a matching platform that will connect Microsoft employees and the Microsoft retiree base with skills-based volunteering opportunities, a freestanding tool that will generate its own momentum.\nIt is through these collaborations, shared thought leadership, and tireless work to redefine and integrate service into our businesses and communities that we will succeed in creating a world where every nonprofit can fulfill its mission.", "LBody_119\nLBody_120\nLBody_121\nLBody_122\nLBody_123\nLBody_124\nLBody_125\nLBody_126", "The Microsoft Vendor Code of Conduct applies to all of our suppliers and requires, among other things: \n• Fair wages and health benefits.\n• Proper health and safety.\n• Environmental compliance.\n• Freedom of association.\n• No forced or child labor.\n• Non-discrimination.\n• Protection of privacy and intellectual property.", "Microsoft partners with approximately 640,000 businesses—mostly small to medium-sized and locally owned—to develop, market, sell, and service Microsoft products. Our partners’ impact is felt in economies around the world. In 2011, the activities of Microsoft and its partners supported many millions of jobs globally in addition to the jobs of Microsoft corporate employees.\nLink_32\ntext_1\nLink_33\ntext_2\nLink_34\ntext_3", "LI_0\nLI_1", "table_Body_13\nL_7", "REDUCING CARBON EMISSIONS \nMAKING OUR DATA \nCENTERS MORE EFFICIENT \nREDUCING CORPORATE TRAVEL\nIMPROVING THE EFFICIENCY \nOF OUR BUILDINGS \nDECREASING WASTE \nENHANCING THE SYSTEMS THAT WE USE TO TRACK OUR FOOTPRINT\nOUR PRIORITIES FOR FY2012 INCLUDE: _0", "LBody_168\nLBody_172\nLBody_173\nLBody_174", "Link_47\ntext_12\nLink_48\ntext_13\nLink_49\ntext_14", "LI_16", "LBody_58\nLBody_59\nLBody_60", "LBody_77\nLBody_80\nLBody_81\nLBody_82", "Increasing executive leadership and accountability for diversity and inclusion: \nIn our FY2010 Citizenship Report, we committed to increase Microsoft leaders’ involvement. Last year we more deeply engaged the CEO and senior executives in diversity and inclusion planning for FY2012. Going forward, this higher level of engagement will allow us to drive greater alignment around global diversity and inclusion priorities and impact across Microsoft and to hold our leaders accountable for results.\nProviding professional development opportunities to employee groups: We partnered with our employee resource groups to help individuals of all backgrounds develop their professional skills, ultimately helping improve our pipeline of talented employees.\nSparking student interest in technology careers: With our partners, we provided youth programming opportunities to help increase interest in technology careers among more than 4,000 diverse students. Over the long term, our hope is that this will also increase our pipeline of talented, diverse employees.\nIncreasing diversity and inclusion training: \nWe added new training courses on diversity \nand inclusion for Microsoft employees and integrated these into the broader company training offerings. More than 42,000 Microsoft employees took the new online training in FY2011. \nEncouraging employee conversations about diversity and inclusion: We facilitated inclusive conversations with employees and leaders to deepen engagement in diversity and inclusion dialogues across the company.\nSupporting diverse Microsoft employee development: We continued to offer programs and resources to nurture the professional development and meet the unique needs of diverse groups of Microsoft employees.", "\nSPOTLIGHT \nON THE CLOUD\n\nSimilar to other parts of the Microsoft business, \ncloud computing has impacted how we approach environmental sustainability. The economic impact of \nthe cloud is direct, but the environmental impact is \nmore complex.\nThere are two major environmental impacts of the cloud:\n2. The cloud requires more energy use from data centers. The cloud means data centers—including Microsoft data centers—are storing more information and working harder than ever. That means more energy use\nThe energy savings for users outweigh the energy gains by data centers. But, to really maximize the energy benefits of the cloud, we are working with our industry peers and third-party partners to find ways to make data centers as efficient as they can possibly be. In the long term, we see the cloud as a positive environmental strategy. \nLink_70\ntext_36", "LBody_181\nLBody_182\nLBody_183\nLBody_184", "table_Body_8\ntable_FIGURES_26\ntable_FIGURES_27\ntable_FIGURES_28", "Education, Learning, and Youth\nChallenges\nOpportunities\nWhat We’re Doing \nWhat’s Next", "LBody_16\nLBody_17\nLBody_18\nLBody_19\nLBody_20", "Challenges_1\nOpportunities_1\nGiving nonprofits \naccess to technology \nTraining nonprofits to \nuse the latest technology\nWhat’s Next_1", "LBody_39\nLBody_40\nLBody_41\nLBody_42\nLBody_43", "Microsoft activated company-wide responses to two major humanitarian emergencies in FY2011: the earthquake and tsunami in Japan and the flooding in Pakistan. The company also supported relief efforts for more than 40 other disasters around the world. \nMicrosoft and its employees also contributed \napproximately $3.4 million to help victims of \nthe disaster in Japan. \nIn addition, to support our ongoing commitment to help bring technology to remote refugee camps with the UN Refugee Agency (UNHCR), the Community Technology Access (CTA) program added 6 new centers in FY2011; bringing the total \nnumber of centers to 31 spanning Argentina, Armenia, Azerbaijan, Bangladesh, Bulgaria, Georgia, Kenya, Mauritania, Nepal, Rwanda, \nSudan, Uganda, and Yemen.\nLink_60\ntext_25", "table_Body_11\nL_5", "table_Body_30\ntable_FIGURES_80\ntable_FIGURES_81\ntable_FIGURES_82", "table_Body_32\ntable_FIGURES_86\ntable_FIGURES_87\ntable_FIGURES_88", "LBody_137\nLBody_138\nLBody_139\nLBody_140\nLBody_141", "HOLDING OUR SUPPLIERS ACCOUNTABLE\nKEEPING CONFLICT MINERALS OUT OF OUR SUPPLY CHAIN\nREDUCING THE ENVIRONMENTAL IMPACT OF OUR SUPPLY CHAIN\nDIVERSIFYING OUR SUPPLY CHAIN\nOUR PRIORITIES FOR FY2012 INCLUDE: _3", "LBody_148\nLBody_149\nLBody_150\nLBody_151", "L_18\ntext_42", "As we articulated in our Digital Economy Strategy of May 2011, the Australian Government’s goal is for our nation to be one of the world’s leading digital economies by 2020. To help meet that goal, the Government is committed to building a strong cybersecurity culture, cutting-edge technological capacity, and skilled human capital to be one of the most attractive locations on the global information highway.\nCybercrime and other forms of malicious online activity pose a serious threat to the long-term prosperity of Australia’s digital economy. Hacking incidents around the globe have reinforced the importance of protecting online information and challenge traditional notions of privacy, identity, and social responsibility in a virtual world. \nIt is a responsibility of the government—but also of individuals and businesses—to face up to these new challenges and to try to stay one step ahead of those who might seek to harm us. Microsoft is engaging in this challenge and I encourage their continued engagement in this field.\nLink_79\ntext_46", "WORKING WITH OUR PEERS TO ADVANCE FREEDOM OF EXPRESSION\nCREATING CORPORATE POLICIES TO\nPROTECT FREEDOM OF EXPRESSION\nBUILDING FREEDOM OF \nEXPRESSION PROTECTIONS INTO \nOUR PRODUCTS AND PROCESSES\nSUPPORTING FREEDOM OF POLITICAL EXPRESSION\nOUR PRIORITIES FOR FY2012 INCLUDE: _4", "ENGAGING PROACTIVELY \nWITH STAKEHOLDERS\n\nENGAGING WITH OTHERS ON INDUSTRY BEST PRACTICES\nMANAGING RISK AT THE BOARD LEVEL\nMAINTAINING OUR STRONG PRACTICES AND PERFORMANCE\nOUR PRIORITIES FOR FY2012 INCLUDE: _5", "LBody_200\nLBody_201\nLBody_202\nLBody_203\nLBody_204", "COMPETING RESPONSIBLY WITHIN OUR INDUSTRY\nRESPECTING ANTITRUST LAWS AND PRINCIPLES\nTRAINING EMPLOYEES \nPROMOTING GLOBAL COMPLIANCE \nAND GOVERNANCE EFFORTS \nOUR PRIORITIES FOR FY2012 INCLUDE: _7", "Link_96\ntext_64", "Microsoft\n2011\nCitizenship\nReport", "Business for Social Responsibility\nBoston College Center for Corporate Citizenship\nNet Impact\nWorld Economic Forum’s Partnering Against Corruption Initiative", "Our Citizenship Mission\nOur Citizenship Approach\nStakeholder Engagement and \nResponding to International Priorities \nWhat’s Next \nin Citizenship", "(Revenue per business division shown in billions.)\nLink_30\nLink_31\ntext_0", "Microsoft products include operating systems for personal computers, servers, phones, and other intelligent devices; server applications for distributed computing environments; productivity applications; business solution applications; desktop and server management tools; software development tools; video games; and online advertising. We also design and sell hardware, including the Xbox 360® gaming and entertainment console.\nThis past year, cloud-based solutions that provide customers with software, services, and content over the Internet continued to grow in significance for our business. Some examples of Microsoft cloud services are: \nIn FY2011 Microsoft released a number of new products and services that further diversified our business. These included: \nThese and other products are the result of considerable investment in research and development, which is conducted by Microsoft Research and dedicated product teams. In FY2011 we invested more than $9 billion in research and development, equal to 13 percent of revenue, with a majority of this investment focused on product development.", "LBody_4\nLBody_5\nLBody_6\nLBody_7", "table_Body\ntable_FIGURES\ntable_FIGURES_0\ntable_FIGURES_1", "table_Body_0\ntable_FIGURES_2\ntable_FIGURES_3\ntable_FIGURES_4", "table_H1_2\ntable_H1_3\ntable_H1_4\ntable_H1_5", "table_Body_1\ntable_FIGURES_5\ntable_FIGURES_6\ntable_FIGURES_7", "table_Body_2\ntable_FIGURES_8\ntable_FIGURES_9\ntable_FIGURES_10", "table_H1_6\ntable_H1_7\ntable_H1_8\ntable_H1_9", "table_Body_3\ntable_FIGURES_11\ntable_FIGURES_12\ntable_FIGURES_13", "table_Body_4\ntable_FIGURES_14\ntable_FIGURES_15\ntable_FIGURES_16", "table_Body_5\ntable_FIGURES_17\ntable_FIGURES_18\ntable_FIGURES_19", "table_Body_6\ntable_FIGURES_20\ntable_FIGURES_21\ntable_FIGURES_22", "table_H1_10\ntable_H1_11\ntable_H1_12\ntable_H1_13", "table_Body_7\ntable_FIGURES_23\ntable_FIGURES_24\ntable_FIGURES_25", "table_H1_14\ntable_H1_15\ntable_H1_16\ntable_H1_17", "table_Body_9\ntable_FIGURES_29\ntable_FIGURES_30\ntable_FIGURES_31", "table_Body_10\ntable_FIGURES_32\ntable_FIGURES_33\ntable_FIGURES_34", "LBody_8\nLBody_9\nLBody_10\nLBody_11", "LBody_12\nLBody_13\nLBody_14\nLBody_15", "Information and communication technologies (ICT) are changing the face of education. They have the potential to help expand access, bring more equity, improve quality and enhance management practices.\nCommunity radio programs, TV and satellite-broadcasting programs, self-generated video clips, community computers and mobile phones are among the different delivery solutions literacy specialists are using to reach marginalized groups and young people. Online courses are increasingly enabling broader groups of students to participate in higher education, technical and vocational education and training, and other lifelong learning opportunities. UNESCO works with its partners around the world, which include Microsoft, to develop innovative tools for education. In short, ICTs are helping the development community to bridge the knowledge divide.\nThe main benefits of ICT for education appear to be in developing cross-disciplinary competencies, such as critical thinking, problem solving and complex communication—skills that are very relevant in today’s fast-changing labor markets. Tapping into this potential requires improving teachers’ ICT competencies and developing innovative pedagogies. It also means rethinking curricula and re-defining learning outcomes in response to the growing importance of new basic skills such as information literacy, digital literacy and ICT literacy. Governments in many developed countries and some middle-income countries have recognized this, by integrating ICT-related ‘learning outcomes’ into their curriculum structure. UNESCO is helping governments around the world to update their curriculum to include these new learning outcomes.\nOf course, there are obstacles. Many students still have little or no access to technology. Governments and institutions in least developed countries lack the capacities to provide well-designed ICT-based learning. Furthermore, the broadband divide is still widening. The public sector and private companies hold the key to bridging this gap. Together, we can ensure that ICT helps build a better, more peaceful and equitable world.", "Challenges_0\nOpportunities_0\nWhat We’re Doing _0\nWhat’s Next_0", "LBody_24\nLBody_25\nLBody_26\nLBody_27", "LBody_28\nLBody_29\nLBody_30\nLBody_31", "STIMULATING ECONOMIC GROWTH \nEQUIPPING WORKERS \nWITH TECHNOLOGY SKILLS\nSUPPORTING SMALL BUSINESSES\nOUR PRIORITIES FOR FY2012 INCLUDE: ", "Link_53\ntext_18\nLink_54\ntext_19", "In Latin America and the Caribbean, technology is playing a crucial role in fostering development through innovation and capacity building. The IDB is partnering with Microsoft to develop projects that facilitate ICT access for citizens and institutions across the region.\n Among the partnership projects, the IDB—through the Multilateral Investment Fund—and Microsoft established the Youth Technology for Job Creation Fund. In Latin America, there are more than 200 million people under the age of 30, and the unemployment rate for this group is twice that of the rest of the adult population. The fund, which finances job training programs to broaden the use of IT skills, entered its second phase in March 2011—tripling the amount of grants available. This effort builds in part on our previous partnership in which we provided technology training to people with disabilities and at-risk youth populations in more than 21 countries in the region.\nThe IDB and Microsoft also partner to support policies and strategies fostering ICT research capacity building and innovation through the Latin American and Caribbean Collaborative ICT Research Federation (LACCIR) Virtual Institute. Launched in 2007, LACCIR has funded more than 25 research projects to date on topics ranging from biotechnology to digital inclusion.\nIn the aftermath of the January 2010 earthquake in Haiti, we are addressing the challenge of managing information and resources in the reconstruction effort and improving the capacity of the country’s education system. In partnership with the Haitian government, Microsoft and the IDB developed the Haiti Integrated Government Platform (HIGP), providing a comprehensive e-governance solution to improve transparency and donor coordination, thereby transforming the delivery of government services. We also continue to support education reform and programs to provide teachers and students with access to technology.", "LBody_35\nLBody_36\nLBody_37\nLBody_38", "Challenges_2\nOpportunities_2\nWhat We’re Doing _1\nWhat’s Next_2", "LBody_46\nLBody_47\nLBody_48\nLBody_49", "LI_14", "LBody_53\nLBody_54\nLBody_55", "table_H1_20\ntable_H1_21\ntable_H1_22\ntable_H1_23", "table_Body_15\ntable_FIGURES_35\ntable_FIGURES_36\ntable_FIGURES_37", "table_Body_16\ntable_FIGURES_38\ntable_FIGURES_39\ntable_FIGURES_40", "table_Body_17\ntable_FIGURES_41\ntable_FIGURES_42\ntable_FIGURES_43", "table_Body_18\ntable_FIGURES_44\ntable_FIGURES_45\ntable_FIGURES_46", "table_H1_24\ntable_H1_25\ntable_H1_26\ntable_H1_27", "table_Body_19\ntable_FIGURES_47\ntable_FIGURES_48\ntable_FIGURES_49", "table_Body_20\ntable_FIGURES_50\ntable_FIGURES_51\ntable_FIGURES_52", "table_Body_21\ntable_FIGURES_53\ntable_FIGURES_54\ntable_FIGURES_55", "table_Body_22\ntable_FIGURES_56\ntable_FIGURES_57\ntable_FIGURES_58", "table_Body_23\ntable_FIGURES_59\ntable_FIGURES_60\ntable_FIGURES_61", "table_Body_24\ntable_FIGURES_62\ntable_FIGURES_63\ntable_FIGURES_64", "table_H1_28\ntable_H1_29\ntable_H1_30\ntable_H1_31", "table_Body_25\ntable_FIGURES_65\ntable_FIGURES_66\ntable_FIGURES_67", "table_Body_26\ntable_FIGURES_68\ntable_FIGURES_69\ntable_FIGURES_70", "table_Body_27\ntable_FIGURES_71\ntable_FIGURES_72\ntable_FIGURES_73", "table_H1_32\ntable_H1_33\ntable_H1_34\ntable_H1_35", "table_Body_28\ntable_FIGURES_74\ntable_FIGURES_75\ntable_FIGURES_76", "table_Body_29\ntable_FIGURES_77\ntable_FIGURES_78\ntable_FIGURES_79", "table_Body_31\ntable_FIGURES_83\ntable_FIGURES_84\ntable_FIGURES_85", "table_H1_36\ntable_H1_37\ntable_H1_38\ntable_H1_39", "table_Body_33\ntable_FIGURES_89\ntable_FIGURES_90\ntable_FIGURES_91", "table_Body_34\ntable_FIGURES_92\ntable_FIGURES_93\ntable_FIGURES_94", "table_Body_35\ntable_FIGURES_95\ntable_FIGURES_96\ntable_FIGURES_97", "table_H1_40\ntable_H1_41\ntable_H1_42\ntable_H1_43", "table_Body_36\ntable_FIGURES_98\ntable_FIGURES_99\ntable_FIGURES_100", "Challenges_3\nOpportunities_3\nWhat We’re Doing _2\nWhat’s Next_3", "LBody_68\nLBody_69\nLBody_70\nLBody_71", "Updated the way we pay our people: \nWe announced the biggest-ever changes to our pay structure. We are raising employees’ base salaries, providing more cash up front by reducing performance-based stock award targets for most employees. Starting in FY2012, employees in particularly competitive positions or markets will receive an additional pay increase. We took these steps to respond to employee preferences for cash compensation and to target areas of the market where competition is most intense.\nSimplified employee performance reviews: We simplifed our performance review system to make the link between performance and rewards more transparent and to allow managers to invest more time in meaningful performance and career development discussions throughout the year.\nAnnounced the evolution of United States healthcare benefits: Microsoft healthcare benefits have led the industry for years and will continue to be among the best in the future. In FY2011 we announced that we will be moving to a cost-sharing model beginning in 2013, providing employees with two years to learn more about alternate plans, including the Health Savings Plan with generously Microsoft-funded Health Savings Accounts. The change addresses the rising cost of health care in the United States and our need to ensure that our health plan is sustainable for the long term.\nReaffirmed our support for comprehensive benefits: We continue to offer a wide range of meaningful employee benefits—including wellness, insurance, retirement, and work-life balance benefits—to provide our employees with a high quality of life and ongoing peace of mind. Microsoft’s investments in some of these programs are detailed in the table. ", "Challenges_4\nOpportunities_4\nWhat We’re Doing _3\nWhat’s Next ", "Challenges_5\nOpportunities_5\nWhat We’re Doing _4\nWhat’s Next _0", "SUPPORTING EMPLOYEE GIVING AND VOLUNTEERISM\nCONNECTING SKILLED EMPLOYEES WITH NONPROFITS IN NEED\nEMPOWERING EMPLOYEES TO PERSONALIZE AND INSPIRE MICROSOFT’S CITIZENSHIP\nOUR PRIORITIES FOR FY2012 INCLUDE: _2", "Encouraging volunteerism: We organize employee volunteer activities and support employees’ personal volunteering by offering paid time off for volunteering outside the United States and making contributions to nonprofits where our employees volunteer in the United States. In FY2011, Microsoft employees in the United States alone volunteered more than 383,000 hours in their communities.\nMatching charitable giving: In the United States, we match employee donations to nonprofits up to $12,000. We also run an annual employee giving campaign in support of U.S.-based nonprofits. In FY2011, with employee contributions and the corporate match, we contributed a record-breaking $93.5 million. Many offices outside the United States also match employee giving.\nIn FY2011, we studied how our employees can use their unique skills—both professional and nonprofessional—to contribute to their communities. To help connect skilled volunteers with the community, we created Volunteer Manager, an online tool that matches Microsoft employees and Microsoft alumni with volunteer opportunities based on their skills, areas of interest, location, and other factors. The tool was piloted in the United States in FY2011 and will launch internally across our U.S. offices in FY2012.\nEmployees at our headquarters in Redmond, Washington, started a Net Impact chapter in FY2011 to learn about and brainstorm ways that Microsoft can be a better corporate citizen. Net Impact is a global organization that promotes the power of business to make a better world. The Microsoft Net Impact chapter is the first corporate chapter of its kind. ", "Challenges_6\nOpportunities_6\nWhat We’re Doing _5\nWhat’s Next _1", "LBody_95\nLBody_96\nLBody_97\nLBody_98", "LBody_108\nLBody_109\nLBody_110\nLBody_111", "Challenges_7\nOpportunities_7\nWhat We’re Doing _6\nWhat’s Next _2", "Challenges_8\nOpportunities_8\nWhat We’re Doing _7\nWhat’s Next _3", "Challenges_9\nOpportunities_9\nWhat We’re Doing _8\nWhat’s Next_4", "LI_49", "LBody_158\nLBody_159\nLBody_160\nLBody_161", "DEVELOPING SAFER PRODUCTS\nTEACHING PEOPLE HOW TO STAY SAFER ONLINE\nHELPING PROTECT PEOPLE \nAND BUSINESSES ONLINE\nOUR PRIORITIES FOR FY2012 INCLUDE:_0", "Challenges_10\nOpportunities_10\nWhat We’re Doing _9\nWhat’s Next _4", "L_20\ntext_47", "Challenges_11\nOpportunities_11\nWhat We’re Doing _10\nWhat’s Next_5", "LBody_187\nLBody_188\nLBody_189\nLBody_190", "Challenges_12\nOpportunities_12\nWhat We’re Doing _11\nWhat’s Next_6", "Challenges_13\nOpportunities_13\nWhat We’re Doing _12\nWhat’s Next_7", "LBody_210\nLBody_211\nLBody_212\nLBody_213", "UN Global Compact \nself-assessment\nInternational Chamber of Commerce\nTransparency International", "Link_91\ntext_59\nLink_92\ntext_60", "Reporting Year \nScope\nAdditional Reporting\nFeedback", "Communication of Progress to the \nUN Global Compact\nUN Millennium Development Goals\nOneReport data\nGRI Index", "Citizenship website\nblogs\nFacebook\nTwitter", "This document is provided “as-is.” Information and views expressed in this document, including URL and other Internet website references, may change without notice. You bear the risk of using it. \nThis document does not provide you with any legal rights to any intellectual property in any Microsoft product. You may copy and use this document for your internal, reference purposes. \n© 2011 Microsoft. All rights reserved. \nMicrosoft, Bing, BizSpark, Dynamics, Excel, Hotmail, Internet Explorer, Kinect, Lync, Mediaroom, MSN, OneNote, PhotoDNA, PowerPoint, SharePoint, Silverlight, SkyDrive, SQL Azure, SQL Server, Visual Studio, Windows, Windows Azure, Windows Intune, Windows Live, Windows Server, Xbox 360, and Xbox LIVE are trademarks of the Microsoft group of companies. All other trademarks are property of their respective owners.", "Our Mission\nOur Business\nWhere We Are", "To help people and businesses around the world realize their full potential.\nAs the worldwide leader in software, services, and solutions that help people and businesses realize their full potential, Microsoft Corporation (NASDAQ: MSFT) is committed to sharing our successes with our employees, our shareholders, and the communities in which we operate. We approach that commitment with the same energy and innovation with which we approach all parts of our business. \nMicrosoft is headquartered in Redmond, Washington. In fiscal year 2011 (FY2011) we employed approximately 90,000 people on a full-time basis in more than 100 countries/regions and territories. Approximately 54,000 employees were based in the United States, and 36,000 were based internationally.", "LBody_1\nLBody_2\nLBody_3", "table_H1\ntable_H1_0\ntable_H1_1", "Through our Citizenship efforts, Microsoft has the \nopportunity to help build and nurture communities in the more than 100 countries/regions around the world where we have a presence. \nMicrosoft Unlimited Potential has focused on serving communities with our time, our resources, and our technology. Microsoft has worked alongside others to provide relevant, affordable, and accessible technology for those at the bottom and middle of the economic pyramid. We have served millions of people through Unlimited Potential, and we will continue to serve millions more as our work evolves to meet the needs of people around the world and embraces areas such as cloud services and mobile technology. \nThe following are some of our goals in each \nof our Serving Communities focus areas. \nMany of these are goals that we set for ourselves or reported on in our FY2010 Citizenship Report. For more detail on these goals, see the relevant sections of this report.", "IMPROVING ACCESS TO \nHIGH-QUALITY EDUCATION\nADVANCING SCIENCE AND MATH IN SCHOOLS\nOUR PRIORITIES FOR FY2012 INCLUDE:", "LBody_21\nLBody_22\nLBody_23", "LBody_32\nLBody_33\nLBody_34", "\nHow does a remote district in India improve the newborn sex ratio from 839 girls for every 1,000 births to 876 (the world average is 1,0841)? How does a small Indian nonprofit reach 150 million weak readers, doubling the number of good readers in local primary schools (India’s adult literacy is 74.04 percent2)? There is only one answer: technology. The information age has transformed communities across vast geographies by plugging them into networks and providing tools to interact, manage, and reach. The term ‘global village’ has taken on a new meaning in this information age as miles get bridged by the Internet superhighway. However, the impact of ICT on poverty and development is still just beginning to be felt. \nThe solution to the reach challenge is through partnership and active participation of tech companies like Microsoft that support the delivery of technology access, training, and informed usage to local communities. Microsoft has supported the NASSCOM Foundation since 2005, and together they have benefited more than 1,700 nonprofits all over India through software donations, certifications, and IT training for better nonprofit performance as well as community development. Through partnership we can scale this impact, assisting with solving the world’s toughest and most pressing issues. Creating a platform for proactive participation of tech companies is critical for the success of this knowledge transfer. Corporate philanthropy by tech companies for hardware, software, and general donations is a start. Innovation can come from tech companies forging partnerships with nonprofits for product/service development. Bridging the talent needs of nonprofits with employee volunteering and all-out deployment will engage employees and build capacity. Tech companies can also consider investment into social enterprises piloted by nonprofits as another means of bridging the technology divide. And finally, linking in the government as the third leg of this collaborative effort will scale such efforts to reach the last mile.\nICT-connected villages and urban slums with content that can support education, livelihoods, health, disaster preparedness, and public services will truly bring about an inclusive and sustainable globe where gender divides are bridged and illiteracy is a thing of the past.", "Table_4", "TBody_4", "TR_4", "TD_21", "table_NOTE_1", "Link_59\ntext_24", "LBody_50\nLBody_51\nLBody_52", "table_Body_12\nL_6", "Link_63\ntext_28", "More than 15,000 people used J!ResQ to find one another in the days and weeks after the earthquake.\nLink_64\ntext_29", "LBody_62\nLBody_63\nLBody_64", "LBody_65\nLBody_66\nLBody_67", "PROVIDING INDUSTRY-LEADING COMPENSATION AND BENEFITS\nPROVIDING LIFELONG LEARNING \nAND DEVELOPMENT OPPORTUNITIES\nOUR PRIORITIES FOR FY2012 INCLUDE: _1", "SPOTLIGHT \nON LEADERSHIP\n\nOne of the ways that Microsoft develops leaders is through our Front Lines program. The program brings Microsoft executives together for an immersive three- to four-day workshop in a developing country. There, they work with Microsoft partners, including nonprofits and United Nations agencies, to help them solve organizational challenges. The interactive experience helps our executives build their leadership and problem-solving abilities and helps them learn how to do \nbusiness in emerging markets. The experience also \nhelps Microsoft partners benefit from the expertise \nof our leaders. \nThirty-five Microsoft leaders participated in the FY2011 \nprogram in Peru. One hundred percent of Microsoft \nparticipants agreed that the program gave them a \ndeeper understanding of the challenges and \nopportunities for the company in doing business \nin emerging markets.", "LBody_74\nLBody_75\nLBody_76", "L_11\ntext_32", "BUILDING A MORE DIVERSE MICROSOFT WORKFORCE\nCREATING A MORE INCLUSIVE\nWORK ENVIRONMENT\nOUR PRIORITIES FOR FY2012 INCLUDE: ", "LBody_83\nLBody_84\nLBody_85", "LBody_86\nLBody_87\nLBody_88", "LBody_89\nLBody_90\nLBody_91", "LBody_92\nLBody_93\nLBody_94", "LBody_105\nLBody_106\nLBody_107", "\nVIEWPOINT\n\nDan Jørgensen\nMember of the European Parliament, Vice-Chair, \nCommittee on the Environment, Public Health and Food Safety", "LBody_112\nLBody_113\nLBody_114", "LBody_115\nLBody_116\nLBody_117", "CREATING ENERGY SAVINGS THROUGH TECHNOLOGY \nPARTNERING TO MAKE THE INFORMATION TECHNOLOGY INDUSTRY MORE SUSTAINABLE \nOUR PRIORITIES FOR FY2012 INCLUDE: ", "LBody_127\nLBody_128\nLBody_129", "LBody_132\nLBody_133\nLBody_134", "LBody_142\nLBody_143\nLBody_144", "LBody_145\nLBody_146\nLBody_147", "L_17\ntext_41", "LBody_162\nLBody_163\nLBody_164", "LBody_165\nLBody_166\nLBody_167", "LI_53", "LBody_169\nLBody_170\nLBody_171", "LBody_175\nLBody_176\nLBody_177", "LBody_178\nLBody_179\nLBody_180", "LBody_191\nLBody_192\nLBody_193", "LBody_194\nLBody_195\nLBody_196", "LBody_197\nLBody_198\nLBody_199", "ENGAGING TRANSPARENTLY WITH POLICYMAKERS\nADHERING TO STRICT PRINCIPLES AND POLICIES\nOUR PRIORITIES FOR FY2012 INCLUDE: _6", "LBody_207\nLBody_208\nLBody_209", "LBody_214\nLBody_215\nLBody_216", "Link_26\nLink_27", "LI", "LBody\nLBody_0", "Financial Information\nBusiness Structure ", "\nOur Customers and Partners\nPartners ", "Our Products\nResearch and Development", "table_NOTE_0", "Link_35\ntext_4", "Link_39\ntext_5", "Link_50\ntext_15", "Link_51\ntext_16", "Link_55\ntext_20", "Link_56\ntext_21", "CREATING NEW TECHNOLOGIES FOR NONPROFITS\nOUR PRIORITIES FOR FY2012 INCLUDE: _0", "\n\n\nPARTNER \nSPOTLIGHT\nTechSoup Global", "Link_58\ntext_23", "http://hdr.undp.org/en/media/HDR_2010_EN_Complete_reprint.pdf\n\nhttp://www.censusindia.gov.in/2011-prov-results/indiaatglance.html", "LBody_44\nLBody_45", "table_H1_18\ntable_H1_19", "Link_61\ntext_26", "LI_15", "LBody_56\nLBody_57", "Link_62\ntext_27", "rolling blackout calendar\ngovernment radiation reports", "table_Body_14\nL_8", "How we work is just as important as the products we make and all we do to support our local communities. Our behavior affects all of our stakeholders—customers, shareholders, employees, communities, suppliers, and partners. We work across all areas of business to be a responsible partner to all of the people who place their trust in us. \nThe following are some of our goals in each of our Working Responsibly focus areas. Many of these are goals that we reported on or set for ourselves in our FY2010 Citizenship Report. For detail on progress achieved against these goals, see the relevant sections of this report. ", "Link_65\ntext_30", "Link_66\ntext_31", "“No matter where we go in the world, we have to attract great talent. The passion and talent of our people is what drives the success of Microsoft.”\n — Lisa Brummel, Chief People Officer", "“Our emphasis on diversity and inclusion enables us to build a workforce and create a work environment that fosters talent and creativity and welcomes different experiences, perspectives, and capabilities. We believe this is key to understanding our customers’ changing needs so we can continue to deliver products and services that provide them with real value.”\n — Gwen Houston, General Manager of Global Diversity and Inclusion", "LBody_72\nLBody_73", "LI_24", "LBody_78\nLBody_79", "Link_67\ntext_33", "“IT accounts for about 2 percent of the world’s energy use, but that percentage is growing as demand for IT services increases. The cloud will allow us to rethink the role of IT and energy, so that we’re not just thinking about how to reduce the impact of IT, but also about how IT can reduce the impact of the other 98 percent of the energy consumed.”\n — Rob Bernard, Chief Environmental Strategist", "LBody_99\nLBody_100", "LBody_101\nLBody_102", "LBody_103\nLBody_104", "Responsible Sourcing_0\nMicrosoft Environment website", "In recent years I have been pleased to notice that the technology sector is becoming more aware of its impact on the environment and is acting decisively to cut its carbon footprint. By reducing power and water usage in its Dublin data center, Microsoft and its peers are truly leading the way and showing how innovation can both foster economic growth and create a cleaner, more sustainable future for people everywhere.\nThese efforts are critical as we are facing some of the most serious issues of global warming caused by increasing carbon emissions. In addition, we are experiencing some of the worst economic setbacks in living memory. I have always had a commitment to the environment and I believe that information and communications technology (ICT) will play a crucial role in enabling solutions to address these challenges, whilst also enabling the creation of a revitalized economy for Europe. It is increasingly clear that ICT—and especially cloud computing—can help people and businesses increase energy efficiency and drive down carbon emissions.", "Link_73\ntext_38", "\nPARTNER SPOTLIGHT\nOSISoft", "Link_74\ntext_39", "LBody_130\nLBody_131", "LBody_135\nLBody_136", "\nSPOTLIGHT ON WOMEN’S HEALTH\n\nGender inequality affects women’s health and reduces opportunities for women to participate in the economy. \nThis is particularly true in developing countries. In FY2011, Microsoft piloted a women’s health education and \nawareness program in collaboration with Business for Social Responsibility and a China-based supplier, Lite On \nPower, called HERproject (Health Enables Returns). \nThe LiteOn HERproject collaboration educates their women workers about gender-specific health issues. This program uses a “train the trainer” approach that has proven successful in reducing absenteeism, improving retention, and increasing productivity. ", "“Internet privacy, safety, and security are at the heart of our values as a company. We are committed to promoting strong methods of authentication on the Internet that can lead to greater accountability in a host of online scenarios, while also respecting personal privacy.”\n — Scott Charney, Corporate Vice President, Trustworthy Computing", "Link_75\ntext_40", "LI_48", "LBody_155\nLBody_156", "Win32/Rustock\nhttp://support.microsoft.com/botnets", "Link_78\ntext_45", "One of the ways that Microsoft supports freedom of expression is by helping individuals, nonprofits, and issue and political campaigns use technology for civic engagement in their countries and communities.\nAs one example, Get Online Egypt is a nationwide campaign to help people benefit from computers and the Internet. Events in Egypt have opened the door to new ways of civic participation in social, economic, and political developments. In all these areas, the Internet is poised to become the channel of the future through which Egyptians can be reached and through which they can engage as citizens. Microsoft is leading efforts to help more Egyptians get online for the first time and use technology for civic engagement.", "“We were an early adopter of majority voting, the first company to adopt say on pay, and one of the very earliest adopters of a no-fault clawback. We continue to evaluate our corporate governance framework, and talk with our Board about what is right for us and our shareholders.”\n — John Seethoff, Vice President and Deputy General Counsel", "Link_83\ntext_51", "Link_84\ntext_52", "LBody_185\nLBody_186", "We engaged in cross-industry dialogues through the Conference Board Governance Center; Stanford Institutional Investors’ Forum; the Society of Corporate Secretaries and Governance Professionals; the Millstein Center for Corporate Governance and Performance; and the Council of Institutional Investors to help identify and contribute to the development of best practices.\nMicrosoft expanded its disclosure related to the role of the Board and its committees in risk management. The Board exercises direct oversight of strategic risks to the company. The Audit Committee reviews and assesses the company’s processes to manage business and financial risk and financial reporting risk. It also reviews the company’s policies for risk assessment and assesses the steps that management has taken to control significant risks. The Finance Committee oversees investment, tax, foreign exchange, and other financial risks. The Compensation Committee oversees risks related to compensation programs and policies. The Antitrust Compliance Committee oversees competition law-related risks. In each case, management periodically reports to our Board or the relevant committee, which provides guidance on risk appetite, assessment, and mitigation. Each committee charged with risk oversight reports to our Board on those matters.", "LBody_205\nLBody_206", "Link_97\ntext_65", "Link_98\ntext_66", "Quote", "13", "2", "8", "5", "2011 Corporate Citizenship Report", "2011 Corporate Citizenship Report", "2011 Corporate Citizenship Report", "2011 Corporate Citizenship Report", "2011 Corporate Citizenship Report", "Link", "Citizenship at Microsoft ", "Link_0", "Our Company 09 ", "Link_1", "Serving Communities 13", "Link_2", "Education", "Link_3", "17", "Link_4", "Working Responsibly 31", "Link_5", "Our People", "Link_6", "37", "Link_7", "Jobs amp; Growth", "Link_8", "21", "Link_9", "GRI Index 77", "Link_10", "Environmental Sustainability", "Link_11", "48", "Link_12", "Nonprofits", "Link_13", "24", "Link_14", "About This Report 78", "Link_15", "Humanitarian Response", "Link_16", "28", "Link_17", "Responsible Sourcing", "Link_18", "56", "The image on the cover of our report \nrepresents a winning team at TechStart Expo, an annual event in Seattle that celebrates the learning and accomplishments of TechStart students in robotics, programming, game design, and Science, Technology, \nEngineering and Math (STEM) knowledge. Microsoft is proud to support TechStart which is a free, yearlong after-school and school day program for public school \nstudents in grades 1–8, providing STEM \nenrichment for underserved children of color. TechStart is a program of Technology Access Foundation (TAF), a nonprofit leader in STEM education that partners with public education, businesses and the community \nto equip and empower students of color \nfor success in college and life.", "Link_19", "Privacy amp; Safety", "Link_20", "60", "Link_21", "Integrity amp; Governance", "Link_22", "67", "Link_23", "Compliance", "Link_24", "74", "CEO Letter", "Citizenship at Microsoft ", "Citizenship at Microsoft is about serving \nthe needs of communities and fulfilling our responsibilities to the public. ", "Microsoft Citizenship work is also informed by engagement with thousands of stakeholders around the world, ranging from human rights experts to parents concerned about the online safety of their children. In working to conduct our business with integrity, we engage with a wide range of stakeholders across all parts of our business operations. We also benefit from participating in a range of groups and initiatives that address corporate responsibility, including \n", "SERVING COMMUNITIES", "WORKING RESPONSIBLY", "Link_28", "Download the Microsoft UN Global Compact Communications on Progress", "Link_29", "Download the Microsoft Commitment to the UN Millennium Development Goals", "| For more information and downloads, view this report online at http://www.microsoft.com/citizenshipreport", "Citizenship at Microsoft", "Citizenship at Microsoft", "Our Company", "Microsoft annual financial report", "Microsoft Investor Relations website", "For detailed information about Microsoft’s business structure and financial performance, visit the \n", "Our Company", "@MicrosoftHelps", "Our success as a business depends on our ability to listen and respond to feedback from our customers and partners. We continually focus on improving our customer relationships and our broad range of listening systems, including product satisfaction surveys, usability studies, online feedback forms, support communities, research forums, and our customer service Twitter account \n", "ACSI", "Across Microsoft, employees and executives are accountable for customer and partner satisfaction metrics from our global surveys, and satisfaction ratings are a core measurement for both individual and regional performance. Microsoft’s latest third-party global survey results show that satisfaction with Microsoft has improved significantly over the past two years. In addition, the American Customer Satisfaction Index (\n", "Microsoft Customer and Partner Experience website", "For more information on customer and partner experience or to provide feedback, visit the \n", "Our Company", "Bing®, our Internet search engine that finds and organizes the answers that people need so that they can make faster, more informed decisions.", "Xbox LIVE®, a service that enables online gaming, social networking, and access to a wide range of video, gaming, and entertainment content.", "The Azure™ family of platform and database services that helps developers connect applications and services in the cloud or onsite.", "Windows® Phone 7: Our next-generation mobile phone operating system. By the end of FY2011, the Windows Phone Marketplace had more than 20,000 apps available for download. ", "Kinect™ for Xbox 360®: A revolutionary device that enables people to control their Xbox 360 game console by using gestures, without requiring a mouse or controller. ", "Microsoft Lync™ 2010: Our newest communication service that integrates voice, video, and messaging.", "Microsoft Office 365: The first cloud-based application for Microsoft Office, enabling users to work, connect, and collaborate flexibly from almost anywhere. ", "Our Company", "2011", "2010", "2009", "Research and development spending (in billions)", "$9.04", "$8.71", "$9.01", "As a percentage of revenue", "13%", "14%", "15%", "FY2011 10-K", "More information about Microsoft investment in research and development is available on pages 9 and 30 of our \n", "Serving \nCommunities", "“At Microsoft, we have a passion for technology. One of the best ways we can serve our communities is by working with our partners in the public and private sectors to find ways technology can help solve some of today’s most pressing societal challenges. The possibilities are really exciting and our ambitions are big.” ", "  — Jean-Philippe Courtois, President, Microsoft International", "Highlights", "Serving Communities", "Serving Communities", "table_TITLE", "Link_36", "Education", "Goal", "Target Date", "FY2011 Progress", "FY2011 Details", "Reach 250 million students and teachers across 115 countries/regions through Partners in Learning (2003 goal)", "2013", "ON TRACK", "In FY2011, we reached nearly 16 million students and teachers in 114 countries/regions. Since 2003, we have reached nearly 210 million students and teachers in 120 countries/regions.", "Use gaming software to make learning more interactive", "On-going", "ON TRACK", "Began to explore classroom applications for Kinect™ for Xbox 360® to help students be more engaged in the learning process.", "table_TITLE_0", "Link_37", "Jobs and Growth", "Goal", "Target Date", "FY2011 Progress", "FY2011 Details", "Help 2 million people get technology training through Elevate America", "2013", "ON TRACK", "Reached more than 1 million people in FY2011 and nearly 1.9 million since the program launched in February 2009. ", "Reach 1 million people globally through Microsoft Innovation Centers", "2012", "ACHIEVED", "Reached 250,000 people and trained 150,000 in FY2011, surpassing 1 million reached.", "Help 23 million people globally get technology training through the Community Technology Skills Program", "FY2011", "ACHIEVED", "Provided technology training to more than 23 million people in FY2011.", "Provide 60,000 people worldwide with software to grow their small businesses through Microsoft BizSpark®", "FY2011", "ACHIEVED", "Reached more than 75,000 people in FY2011, up from 40,000 in FY2010. In FY2012, we will work to improve the success rate of start-up companies participating in the program (current rate of renewal in the program is 75 percent).", "Serving Communities", "table_TITLE_1", "Link_38", "Nonprofits", "Goal", "Target\nDate", "FY2011 Progress", "FY2011 Details", "Increase access to technology for nonprofits to help them achieve their missions ", "On-going", "ON TRACK", "Donated $844 million in software to 46,886 nonprofits in 113 countries/regions.", "Help nonprofits take advantage of the benefits of the cloud", "On-going", "ON TRACK", "CRM Online 2011 Nonprofit Solution", "Launched Microsoft Dynamics® \n", "table_TITLE_2", "Link_40", "Humanitarian Response", "Goal", "Target Date", "FY2011 Progress", "FY2011 Details", "Develop and implement cloud solutions to aid disaster response", "FY2011", "ACHIEVED", "Created and used cloud solutions to help relief organizations, governments, businesses, and the public during disasters, including the earthquake and tsunami in Japan. In FY2012 we will continue this work and launch new tools. ", "Help businesses recover from disasters more quickly", "FY2011", "ACHIEVED", "Provided businesses with free access to cloud solutions to help them get up and running even before infrastructure was rebuilt in the Japan earthquake and other disasters. In FY2012 our goal is to provide additional consulting support to businesses that are looking for technology solutions after disasters. ", "Serving Communities: Education", "Education", "More than 100 million young people around the world lack access to education1. Millions more don’t get the quality education or opportunities that they deserve. Technology can help. ", "Partners in Learning", "Putting technology to use in classrooms: \nIn FY2011 we got closer to our goal of reaching 250 million students and teachers around the world through our \n", "Shape the Future", "Furthering digital inclusion through public/private partnerships: By partnering with governments around the world to create inclusive technology solutions, Microsoft connected 6 million citizens in FY2011 with relevant and affordable education technologies through the \n", "Students to Business", "Training students for jobs in the 21st century: In FY2011, Microsoft trained more than 360,000 students worldwide in technology and job skills through Microsoft \n", "IT Academy", "Helping schools train students and teachers: In FY2011 we partnered to help thousands of schools provide information and communications technology training and technology resources for students and teachers. Our goal is to improve student employability and the professional development of teachers through the Microsoft \n", "educational applications", "Using gaming as a teaching tool: Video \ngames are the new frontier in interactive learning experiences. In FY2011 we launched Kinect™ for Xbox 360®, and we are just beginning to discover its \n", "Imagine Cup", "Supporting student innovation: More than 380,000 students from more than 180 countries/regions participated in the 2011 \n", "The global shortage of well-trained teachers is slowing progress in increasing access to quality education.", "Many teachers don’t have the up-to-date tools that they need to teach effectively.", "Students need the opportunity to gain the critical science, technology, engineering, and math (STEM) skills that are required for so many of today’s jobs. ", "There are nearly 77 million unemployed youth around the world, partly because they lack skills2. ", "Providing information and communications technology tools that teachers can incorporate into their curriculum", "Using the Internet to increase access to quality learning opportunities", "Promoting science, technology, engineering, and math education for all students to improve skills and competitiveness", "Increasing the readiness of workers for the technology economy", "Partnering with governments around the world to increase access to quality 21st-century education through our Shape the Future program.", "Continuing to advance cloud-based computing, learning analytics, and mobile and game-based learning to help engage and excite students. ", "Reaching 250 million students and teachers across 115 countries/regions through Partners in Learning by 2013. ", "Beginning work on our commitment through the Clinton Global Initiative to connect \n1 million “digitally excluded” students and their families in the United States to personal learning devices, Internet services, online education tools, job skills training, and online safety resources by the end of FY2014. ", "Continuing to advocate through our public policy agenda and corporate affairs work for policies that advance educational reform.", "Read more", "|  Impact Story: In India, Project Shiksha trains teachers to use technology in the classroom. Learn more about how one teacher is using Microsoft PowerPoint® to create engaging digital lessons. \n", "Read more", "| Impact Story: Through Students to \nBusiness, students in Turkey are being trained in key competencies that they will need for future jobs. \n", "Watch the video", "| Impact Story: In 2011, North Carolina became the first U.S. state to implement the IT Academy program in all of its 628 public high schools. This program will provide 200,000 students with technology training in the first three years. \n", "http://www.unicef.org/publications/files/Progress_for_Children-No.9_EN_081710.pdf \n2. http://www.ilo.org/wcmsp5/groups/public/@dgreports/@dcomm/@publ/documents/publication/wcms_150440.pdf", "1. \n", "Serving Communities: Education", "\nVIEWPOINT\n\nDr. Qian Tang\nDeputy Assistant Director-General for Education, UNESCO ", "ICT for high-quality universal education: opportunities and challenges", "Serving Communities: Education", "SPOTLIGHT \nON STUDENTS", "Read more", "Meet Team Hermes from Ireland, who took home the top prize in Software Design at the 2011 Imagine Cup. Competing against more than 380,000 students from 183 countries/regions, the team took home top honors for their device that plugs into a car to monitor dangerous driving behavior and road conditions, providing instant feedback to both the driver and the car owner. \n\n", "Serving Communities: Education", "Serving Communities: Jobs and Growth", "Jobs and Growth", "In many countries, unemployment remains stubbornly high and people lack the skills to fill open jobs. The technology industry can help create jobs in all sectors and rebuild economies. ", "Microsoft Innovation Centers", "Propelling innovation: One key to creating economic growth through technology is innovation. That is why Microsoft is one of the industry’s leading investors in research and development. We view this as an investment in our future, in our industry’s future, and in the global progress of technology. Some of the results of our research last year included new technology to improve everything from colon cancer screenings to microfinance transactions in the developing world. Through the \n", "The global economy is still suffering from the recession, and many people are still out of work. ", "Workers don’t have the technology skills that they need to find and keep employment in the modern economy. ", "Entrepreneurs and small businesses often can’t access or afford the technology that can help their companies grow. ", "Creating new jobs through technology innovation", "Teaching people technology skills to help them get new and better jobs", "Capitalizing on the growth of cloud computing to create economic growth and opportunities for builders and users of technology", "Providing entrepreneurs and small businesses with access to technology to help them build capacity and drive growth in local economies", "Going deeper with our technology skills program to support youth who are interested in technology to change the world. Through our Tech Talent 4 Good initiative, we will provide young technology talent with: On-site experience through a mentorship program with nonprofits.Seed funding to help take their innovations to scale. A network to help them work together to bring about social change.", "Continuing to provide technology training \nto workers and technology access to \nsmall businesses. ", "Helping start-up businesses increase \ntheir survival rates in their first few years \nof existence.", "Working with partners and governments to unlock the economic potential of the cloud. ", "Read More", "|  Impact Story: Microsoft Britain Works is helping train workers in the United Kingdom. \n", "Read More", "|  Impact Story: French software development company and BizSpark participant Lokad delivers sales, demand, and call volume forecasts by using Windows Azure™.  \n", "SPOTLIGHT ON \nISABEL GARCIA", "Read more", "Meet Isabel Garcia. Isabel took part in Elevate America, \nlearning technology skills that helped her find a new \njob. \n", "http://www.mckinsey.com/mgi/publications/internet_matters/index.asp", "1. \n", "Serving Communities: Jobs and Growth", "\nVIEWPOINT\n\nLuis Alberto Moreno\nPresident, Inter-American Development Bank (IDB)", "1. http://www.mckinsey.com/mgi/publications/internet_matters/index.asp, page 2.", "Serving Communities: Jobs and Growth", "Serving Communities: Nonprofits", "Nonprofits", "Nonprofits are changing the world, often with limited resources and equipment. Imagine what they can accomplish with a little more help. ", "CRM Online 2011 Nonprofit Solution", "In FY2011 we launched Microsoft Dynamics® \n", "Many nonprofits lack the resources that they need to carry out their missions.", "Nonprofits are focused on delivering much-needed services, but many lack the technology training and resources that they need to drive efficiencies, cut costs, and increase reach. ", "Nonprofits may not have optimized their use of existing technology, or they are not using it correctly.", "Ensuring that more nonprofits know they can receive software donations from Microsoft", "Helping nonprofits understand how cloud computing can provide technology faster and often at a lower cost ", "Creating more innovative technologies, \nand more that are tailored to the needs \nof nonprofits", "Repurposing Microsoft enterprise solutions to serve nonprofits ", "Working with TechSoup Global, our software donations partner, to simplify the software donation process for nonprofit users and to provide increased customer support to help nonprofits access technology more easily.", "Expanding our programs to serve nonprofits in more countries/regions. ", "Launching a new program to help nonprofits get the most out of their computers by working with them to properly license the operating systems that they may already have installed.", "Offering Windows 7 Professional to our computer refurbishing partners. This will be the first time that we’ve been able to offer the most current version of Windows for refurbished computers.", "Researching and developing new software and offerings that are tailored to the needs of nonprofits.", "Read more", "TechSoup Global is Microsoft’s signature software donation partner. Together, we donate an average of \n$1 million worth of software every day to nonprofits \naround the world. We also work together to provide \nnonprofits with technology training and opportunities \nto share technology best practices with one another. \n\n", "Serving Communities: Nonprofits", "Serving Communities: Nonprofits", "Serving Communities: Nonprofits", "\nVIEWPOINT", "Rita Soni\nCEO, NASSCOM Foundation", "1. \n", "Serving Communities: Humanitarian Response", "Humanitarian Response", "People and businesses who have suffered a disaster need help as quickly as possible. Microsoft works with partners to use technology to accelerate communication between response organizations, enable accurate communication with the public, and speed the return to normalcy. We provide customers with the support and services that they need to get their businesses back up and running as quickly as possible. A fast recovery not only benefits communities, but also decreases the economic impact on the economy. ", "Natural disasters are increasing globally.Workers don’t have the technology skills that they need to find and keep employment in the modern economy. ", "The destruction of infrastructure in humanitarian emergency situations makes communication and coordinated response difficult.", "Partnering with relief agencies and governments to help respond to disasters", "Using the cloud to bypass infrastructure problems to get responders and those affected back to normal faster", "Encouraging employee giving and volunteering", "Driving global donations and awareness through social media", "Strengthening and building cross-industry relationships with technology partners to offer a more robust suite of technology solutions that address some of the toughest challenges of disaster response. ", "Implementing more cloud solutions in disaster situations, including the Disaster Response cloud-based portal that was piloted in Japan.", "Helping businesses restart after a disaster. Building on the work we did in giving businesses access to cloud solutions to help them restart their operations, we will add consulting services for affected customers and partners to help them find the best technology to speed their recovery. ", "Microsoft Citizenship website", "The earthquake and tsunami in Japan was one of the world’s largest humanitarian disasters and our most significant engagement in FY2011. A summary of our response follows. For information \non our response to other recent disasters, visit \nthe \n", "OUR PRIORITIES FOR FY2012 INCLUDE: ", "Serving Communities: Humanitarian Response", "table_TITLE_3", "Japan Earthquake and Tsunami", "Affected Group", "Microsoft Response", "Response Organizations", "As a part of a cross-industry effort, provided more than 1,200 laptop computers and software to aid workers. We also worked with Dell and HP to provide 250 computers for NetHope, our partner that provides humanitarian response organizations with technology support.", "Worked with a partner to develop an online tool to manage evacuation center capacity and resources ", "cloud-based portal ", "Deployed a pilot \n", "Government and Infrastructure Providers", "Developed a website and mapping tool in partnership with the Ministry of Education, Culture, Sports, Science, and Technology to share information about radiation levels with the public", "Provided Microsoft Business Productivity Online Standard Suite/Office 365 to organizations whose communications infrastructure was damaged", "Local and International Public", "J!ResQ", "Worked with partners to develop and deploy the cloud-based application \n", "Microsoft online properties in Japan featured public information, such as a \n", "Raised global awareness and funds through Microsoft online properties such as MSN, Bing, and Xbox LIVE®", "Customers and Partners", "LI_17", "LBody_61", "Provided free customer service and support, Windows® Azure, Microsoft Exchange Online, Microsoft SharePoint® Online, and Microsoft Lync™ Online for 90 days while existing systems were down", "Serving Communities: Humanitarian Response", "\n\n\nPARTNER\nSPOTLIGHT", "Digital Office Japan ", "J!ResQ", "In just a matter of days after the earthquake hit in Japan, Microsoft partner Digital Office Japan developed and deployed J!ResQ, a cloud application that helps people displaced by the earthquake find their loved ones. Built on Windows® Azure, \n", "Working Responsibly", "“Microsoft is committed to principled, accountable, and transparent business practices that meet our responsibilities as a global company. We appreciate the importance of talking with and listening to those who are affected by our decisions. And we’re committed to learning from groups and individuals that are leaders on the social, economic, and environmental issues of our day.”", "  — Brad Smith, General Counsel and Executive Vice President, \nLegal and Corporate Affairs", "Highlights", "Working Responsibly", "table_TITLE_4", "Our People", "Goal", "Target Date", "FY2011 Progress", "FY2011 Details", "Regularly evaluate compensation and benefits to meet employee and market needs", "Ongoing", "ON TRACK", "Announced significant changes to our pay structure. We are raising employees’ base salaries, providing more cash up front by reducing performance-based stock award targets for most employees. Starting in FY2012, employees in particularly competitive positions or markets will receive an additional pay increase. ", "Increase executive leadership support and accountability in diversity and inclusion", "Ongoing", "ON TRACK", "Deepened direct executive involvement in company-wide diversity and inclusion planning. In FY2012 and beyond, this will create greater visibility and accountability for diversity and inclusion results.", "Recruit, advance, and retain senior-level women globally", "Ongoing", "BEHIND", "The percentage of women pursuing careers in technology continues to decrease. We are working to address the issue along with other industry partners and organizations. ", "Continue to encourage employees to volunteer their skills", "Ongoing", "ON TRACK", "Created an online tool to match the skills of employees with nonprofits in need.", "Working Responsibly", "table_TITLE_5", "Environmental Sustainability", "Goal", "Target Date", "FY2011 Progress", "FY2011 Details", "Reduce carbon emissions per unit of revenue by 30 percent compared with 2007", "2012", "BEHIND", "The rise in cloud computing is requiring more data center capacity, which in turn is causing the use of more energy. We will continue to work to achieve this goal, particularly by making our data centers more efficient.", "Build new data centers that average 1.125 in Power Use Effectiveness (PUE)", "2012", "ON TRACK", "Achieved a PUE of 1.15 to 1.20 in our newest data center. ", "Enhance our global carbon footprint tracking system to also track water consumption and waste", "FY2011", "ON TRACK", "Added water tracking to our system and improved our waste tracking capabilities. The results on water are available in this report. We are working toward more detailed reporting on waste in FY2012. ", "Create new energy-efficiency guidelines for Microsoft product groups ", "Ongoing", "ON TRACK", "Developed energy-efficiency guidelines for Windows® products. In FY2012, we will work to develop energy-efficiency guidelines for our cloud services.", "Develop new environmental guidelines for the software industry as a whole", "Ongoing", "ON TRACK", "Currently working with peers to develop two new industry-wide metrics to track carbon emissions and water use . ", "Work with partners to find solutions that allow cloud computing to grow, while reducing environmental impacts", "Ongoing", "ON TRACK", "Worked with peers and third-party organizations, including the Green Grid, to find new ways to make cloud computing more energy efficient.", "Working Responsibly", "table_TITLE_6", "Responsible Sourcing", "Goal", "Target Date", "FY2011 Progress", "FY2011 Details", "Update our Vendor Code of Conduct", "FY2011", "ACHIEVED", "Updated the code to strengthen human rights, anticorruption, and customer security and privacy. The new code became effective at the beginning of FY2012. ", "Increase transparency", "Ongoing", "ON TRACK", "Briefed socially responsible investors, advocacy groups, and industry peers on our policies, programs, and progress. We also increased the level of detail that we make public about our supply chain in our annual Citizenship Report.", "Eradicate conflict minerals from the technology industry’s supply chain", "Ongoing", "ON TRACK", "Worked with suppliers to help them launch conflict-free sourcing smelter tracking and management systems, which are at various stages of development. We also worked with industry peers through the Electronics Industry Citizenship Coalition to support an industry-wide Conflict-Free Smelter Program.", "table_TITLE_7", "Privacy and Safety", "Goal", "Target Date", "FY2011 Progress", "FY2011 Details", "Teach online safety to people around the world", "Ongoing", "ON TRACK", "Helped teach more than 12 million students, teachers, parents, and consumers safer online habits and practices", "Develop strong privacy and safety public policy frameworks", "Ongoing", "ON TRACK", "Created new resources to help policymakers understand online challenges and how we can work together to solve them", "Partner to fight online crime", "Ongoing", "ON TRACK", "Win 32/Rustock botnet", "Worked with partners to shut down major Internet crime operations such as the \n", "Create company-wide guidelines on online freedom of expression", "FY2011", "ACHIEVED", "Adopted a company-wide Freedom of Expression policy that is based on international human rights standards and the Global Network Initiative", "Working Responsibly", "table_TITLE_8", "Integrity and Governance", "Goal", "Target Date", "FY2011 Progress", "FY2011 Details", "Expand stakeholder engagement and dialogue", "Ongoing", "ON TRACK", "Investor Relations website", "Redesigned and expanded our corporate Governance and Citizenship content on the \n", "Engage with others on industry best practices", "Ongoing", "ON TRACK", "Engaged in cross-industry dialogues through the Conference Board Governance Center, Stanford Institutional Investors’ Forum, the Society of Corporate Secretaries and Governance Professionals, and the Council of Institutional Investors to help develop best practices", "Examine how we manage enterprise and external risk", "Ongoing", "ON TRACK", "Expanded our disclosure related to the role of the Board and its committees in risk management", "Maintain our strong practices and performance", "Ongoing", "ON TRACK", "Achieved strong ratings from independent rating agencies, including a global market rating of 9.5 from Governance Metrics International", "table_TITLE_9", "Compliance", "Goal", "Target Date", "FY2011 Progress", "FY2011 Details", "Strengthen support for industry standards in Windows Internet Explorer®", "FY2011", "ACHIEVED", "Published more than 40 documents with the release of Internet Explorer 9 that explain its support for web standards. No other browser vendor provides this level of documentation. ", "Working Responsibly", "MICROSOFT EMPLOYEE POLL RESULTS", "Table_12", "TBody_12", "TR_12", "TD_62", "table_NOTE_2", "Note: Employee poll responses to the questions reflected in this table have not changed significantly since last year. We continue to invest in building high levels of employee participation in providing feedback. ", "Working Responsibly: Our People: Compensation and Professional Development", "Our People", "COMPENSATION AND \nPROFESSIONAL DEVELOPMENT", "More than 100 million young people around the world lack access to education. Millions more don’t get the quality education or opportunities that they deserve. Technology can help. ", "There is fierce, global competition for top talent, particularly in the research and development pool.", "Microsoft depends on attracting and \nretaining the best talent for our business success.", "The cost of healthcare in the United States is rising, and this has near- and long-term economic impact for both employees and employers. ", "Continually gathering employee feedback about Microsoft culture and responding to this feedback", "Retaining top talent through offering competitive compensation, rewarding top performance, and providing ongoing development opportunities", "Recruiting top talent globally", "Rolling out our new pay structure and monitoring feedback to remain a leading employer of choice.", "Optimizing our pay-for-performance culture and supporting our new performance management approach that rewards business impact and emphasizes ongoing career development.", "Finalizing and communicating the details of our 2013 U.S. healthcare benefits in advance of 2013 Open Enrollment (November 2012) to build employees’ awareness of and confidence in future health benefit election decisions.", "Offering learning and development opportunities to help employees and managers meet the future needs of the business, support agility in the workforce, \nand enhance change management \ncapabilities.", "We are committed to supporting employee development to help employees learn through their work, through their colleagues, and through formal training programs. Opportunities are framed around a 70-20-10 learning and development model: 70 percent on the job, 20 percent learning through others such as mentors and teammates, and 10 percent in formal online or in-person training.", "MICROSOFT EMPLOYEES BY REGION", "Working Responsibly: Our People: Compensation and Professional Development", "Working Responsibly: Our People: Compensation and Professional Development", "Working Responsibly: Our People: Compensation and Professional Development", "Working Responsibly: Our People: Diversity and Inclusion", "DIVERSITY AND INCLUSION", "It can be difficult to attract and retain top diverse talent in increasingly competitive markets.", "Fewer women pursue careers in the technology industry globally.", "Continuing to recruit and retain diverse employees who reflect our customer markets", "Increasing interest in technology careers among women and diverse populations", "Capitalizing on the opportunities of an increasingly diverse global marketplace", "Systemically integrating Diversity and Inclusion principles into all aspects of the talent-management life cycle.", "Working with employee resource groups and employee networks to build rich communities and to successfully bring diverse employees to Microsoft.", "Continuing efforts to increase diverse talent in senior level positions, with a focus on racial minorities in the United States and women globally. We will do this by:\n", "Enhancing managers’ capability and skills for engaging a diverse workforce and creating inclusive work environments. We will focus on critical skills and behaviors that all levels of management must demonstrate to excel when leading diverse employees and teams. ", "Continuing to expand diversity and inclusion efforts in countries outside the United States.", "Conducting research to identify business opportunities for Microsoft to market to diverse populations.", "Working Responsibly: Our People: Diversity and Inclusion", "*U.S. minorities include the following populations: African American/Black, American Indian/ \nAlaska Native, Asian, Hispanic/Latino(a), Native Hawaiian/Other Pacific Islander.", "Working Responsibly: Our People: Diversity and Inclusion", "SPOTLIGHT \nON OUR PEOPLE", "Read more", "Through the DigiGirlz Program, Microsoft employees are inspiring high school girls in Kenya to learn about technology and potentially seek future careers in the technology industry. Employees contribute to the hands-on computer and technology workshops, educational sessions, and fun activities that DigiGirlz provides for hundreds of Kenyan girls. \n", "Working Responsibly: Our People: Employee Community Involvement", "EMPLOYEE COMMUNITY INVOLVEMENT", "Microsoft employees make us a strong and successful company. We have \na responsibility to support them as they unleash their passions and use their talents to help the people and causes that they care about. ", "There is a lack of global infrastructure to match the unique skills of volunteers with the needs of nonprofits.", "Employees are demanding more opportunities to make a difference through their careers.", "Volunteering is often done in one-off projects rather than through sustained partnerships. ", "Working with employees to help make a difference in communities around the world", "Providing employees with meaningful opportunities to contribute to their communities, bond with their co-workers, and improve their leadership skills", "Taking best practices learned in one part of \nthe world and applying them globally\n\n\n", "Increasing employees’ and Microsoft alumni’s skilled volunteerism and use of Volunteer Manager with the official launch of the tool.", "Supporting the Microsoft Net Impact chapter to develop and drive employee-generated Citizenship projects and expanding the chapter to Microsoft employees outside of our headquarters in Redmond.", "Continuing to support employees’ personal giving and volunteerism worldwide.", "Working Responsibly: Our People: Employee Community Involvement", "Working Responsibly: Our People: Employee Community Involvement", "\nVIEWPOINT\n\nAaron Hurst \nPresident and Founder,\nTaproot Foundation", "Working Responsibly: Our People: Employee Community Involvement", "\nSPOTLIGHT ON \nNET IMPACT", "Working Responsibly: Environmental Sustainability", "Environmental Sustainability", "OUR OPERATIONS", "Environmental sustainability starts with how we run our own business. We are always finding ways for our business to operate more efficiently and sustainably.", "The world’s environmental situation is deteriorating quickly. ", "Cloud computing requires additional data centers that consume more energy.", "Everything is global, requiring travel to do regular business.", "Using information technology to reduce our own and our customers’ energy use and corporate travel", "Increasing the efficiency of data centers to further increase the global environmental benefits of the cloud", "Reducing costs through efficiency efforts resulting in energy savings", "Working with our peers to improve energy efficiency in the technology industry", "We opened the new Generation 4 data center in Quincy, Washington, which is achieving a PUE (power usage effectiveness) of 1.15 to 1.20 and gets its electricity from hydropower. We are on track to achieve our goal of designing and constructing data centers that average 1.125 PUE by calendar year 2012.", "We reduced power use for mechanical and electrical infrastructure from an estimated industry average of 50 percent of data center power to less than 10 percent for our Generation 4 data centers that were constructed in FY2011.", "We adopted a new company car policy that requires CO2 emissions for all new Microsoft company cars to average 130 grams per kilometer, representing a significant reduction from previous averages.", "We added 12 electric vehicle charging stations to the Puget Sound campus to support employee-owned electric vehicles, as well as other company service vehicles.", "We reduced computer energy use by \n27 percent. ", "We launched the Sustainability Champions program, an initiative for Microsoft employees to rally their co-workers to adopt more sustainable work habits. The goal is to reduce energy consumption in all Puget Sound buildings by 3 to 5 percent. ", "Began a process to improve how we track emissions, as well as water consumption and waste, for our more than 600 Microsoft sites around the world. ", "Improved our data center and travel reporting. ", "Added water use to our current inventory and reporting system.", "Developing new strategies to meet our goal to reduce carbon emissions per unit of revenue by 30 percent by 2012 in the wake of growth in data center capacity and travel.", "Improving our governance model to \nincrease accountability to corporate environmental goals.", "Sourcing more renewable power and implementing our more sustainable Generation 4 modular data center designs.", "Piloting an energy management program to decrease energy use in 10 percent of the buildings on our campus in Redmond. ", "Carbon Disclosure Project", "These infographics summarize the carbon footprint of our global facilities, operations, and corporate travel. We compile this information on a calendar year basis for reporting through the \n", "For information about how Microsoft is working to reduce the environmental impact of our supply chain, see the \n", "Working Responsibly: Environmental Sustainability", "Table_13", "TBody_13", "TR_13", "TD_63", "table_NOTE_3", "*This data is provided on a calendar year basis rather than a Fiscal Year basis to facilitate reporting to the Carbon Disclosure Project, which is now being extended to water impacts.", "Working Responsibly: Environmental Sustainability: Our Operations", "Table_14", "TBody_14", "TR_14", "TD_64", "table_NOTE_4", "*This data is provided on a calendar year basis rather than a Fiscal Year basis to facilitate reporting to the Carbon Disclosure Project, which is now being extended to water impacts.", "Working Responsibly: Environmental Sustainability: Our Operations", "Table_15", "TBody_15", "TR_15", "TD_65", "table_NOTE_5", "*This data is provided on a calendar year basis rather than a Fiscal Year basis to facilitate reporting to the Carbon Disclosure Project, which is now being extended to water impacts.\n**In 2010 our Greenhouse Gas Emissions inventory was verified by an independent auditor. \n***2010 was the first year we reported on water. At this point, our data collection system does not cover our presence in more than 100 countries. \nThe number reported here represents approximate 65 percent of our global portfolio by square footage.", "Working Responsibly: Environmental Sustainability: Our Operations", "Download the Cloud Computing and Sustainability Study", "1. The cloud saves energy for users. As we learned in a study that we co-published with Accenture and WSP Environment last year, energy use and the carbon footprint of computing is reduced by 30 to 90 percent per user when companies move their business software to the cloud. That means enormous energy savings for millions of people and businesses. \n", "Working Responsibly: Environmental Sustainability: Microsoft Technology for the Environment", "MICROSOFT TECHNOLOGY FOR THE ENVIRONMENT", "Governments, businesses, and households are looking for ways to reduce energy and resource use. New technologies will be an important part of the solution. ", "Communities and economies have high energy and resource demands.", "Making changes in favor of environmental \nsustainability can sometimes be difficult \nand costly. ", "The systemic nature of environmental challenges requires “systems thinking” \nand approaches. ", "Using cloud solutions to help cut energy use for users", "Using technology to track and manage \nimportant resources and help show how they can be reduced", "Tapping the growing willingness to pay attention to environmental challenges and work together to solve them, across \ncountries and across sectors", "LBody_118", "Link_71", "Download the white paper", "Continuing to improve the energy efficiency of our products.", "Creating energy-efficiency guidelines for some of our cloud products, including Windows Azure™ and Office 365. ", "Working with partners to create solutions for customers in five key areas: Greener IT, Buildings, Power and Energy Infrastructure, Transportation, and Resource Management.", "Providing guidance to the information and communications technology industry on how to produce more efficient software. ", "Working with industry peers to develop two new metrics—Carbon Usage Effectiveness and Water Usage Effectiveness—that will help make data centers as efficient as possible. These metrics will be used to help Microsoft and the entire information technology industry improve the efficiency of data centers.", "Collaborating with leading external researchers to identify new ways that technology can help their understanding of environmental challenges. ", "Increasing awareness among customers on how to dispose of their old computers and devices sustainably by supporting industry partnerships, offering collection programs at Microsoft stores and other locations, and conducting outreach on the issue. ", "Creating a kit to help software developers build environmental monitoring features on the Azure platform.", "new guidance", "Providing guidance for developers: We published \n", "Read More", "|  Impact Story: Microsoft technology is being used to help reduce greenhouse gas emissions through our sponsorship of Acterra’s Drive Less Challenge. \n", "Read more", "FY2011 was the first year in which we recognized a Sustainability Partner of the Year as part of the Microsoft annual business partner awards. The inaugural winner \nwas OSIsoft. OSIsoft developed the PI System, built by using Microsoft technology, to help companies reduce \nand manage their energy and water consumption. \n\n", "Working Responsibly: Environmental Sustainability: Microsoft Technology for the Environment", "Working Responsibly: Environmental Sustainability: Microsoft Technology for the Environment", "Working Responsibly: Responsible Sourcing", "Responsible Sourcing", "Microsoft has tens of thousands of suppliers around the world. They are critical to our business success, and we expect them to uphold the high standards of Citizenship to which we hold ourselves. ", "The global network of suppliers is complex \nand has different business practices \nand norms.", "It can be difficult to ensure compliance with set standards throughout the supply chain.", "There is no guarantee that monitoring is completely effective in addressing supply chain issues. ", "Developing a diverse and efficient \nsupply chain", "Helping our suppliers improve their business practices ", "More stringent provisions on anticorruption, customer security and privacy, and human rights. ", "A limit of 60 hours of work per week, even if local law allows more.", "An explicit prohibition of discrimination against union members.", "Purchasing enough wind energy in Europe to \ncover 100 percent of our Dublin data center’s \npower use.", "Signing a contract with a supplier to increase the use of post-consumer recycled printing paper at our Puget Sound facilities from \n35 percent to 100 percent. Unfortunately, in the months after the contract was signed, the supplier company closed. We are exploring \nother options. ", "Continuing education and training on our updated Vendor Code of Conduct. ", "Developing new policies and practices to ensure that the Vendor Code of Conduct is consistently applied across business units. This includes compliance among service providers as well as contract manufacturers.", "Working with all suppliers to identify and verify conflict-free minerals.", "Continuing to increase the transparency of our supplier auditing processes on labor and human rights issues.", "Further evaluating and enhancing our supply chain policies.", "Working Responsibly: Responsible Sourcing", "\nSUPPLIER STANDARDS", "Working Responsibly: Responsible Sourcing", "Working Responsibly: Responsible Sourcing", "Working Responsibly: Privacy and Safety", "Privacy and Safety", "PRIVACY AND SECURITY", "Innovations such as cloud computing have countless benefits for society, but also present some challenges. As more people and businesses entrust the cloud with their information, we are working hard to uphold that trust.", "With more and more personal information being stored and transferred online, the stakes for privacy and data security keep getting higher.", "Public policy frameworks for online privacy and safety need modernization.", "Like all types of crime, online crime is \na persistent problem, and it is difficult \nto eradicate.", "Creating safer products that help keep customers more secure", "Educating people around the world about online safety techniques to help them protect themselves and their information", "Working with industry partners and policymakers to put in place the public policy frameworks and cooperative actions that are necessary to better protect people online", "Windows® Internet Explorer® 9: The latest version of our web browser incorporates new features to help users limit the information that websites can collect about them and to help protect users from inadvertently downloading harmful software.", "Kinect™ for Xbox 360®: Kinect uses built-in cameras and sensors to scan gamers’ body movement. However, Kinect was built with privacy protection in mind, and the body movement information does not personally identify an individual. If gamers are using Xbox LIVE®, which allows them to interact with others online, body movement data is sent to the other players’ Xbox consoles. After the game session is over, the body movement data is immediately deleted from all consoles. Data may only occasionally be sent to Microsoft for analysis or to help improve the game.", "PhotoDNA", "PhotoDNA™ implementation in Microsoft products: In FY2010, in partnership with Dartmouth College and the National Center for Missing and Exploited Children, Microsoft developed \n", "Microsoft Privacy Standard: We released a new internal Microsoft Privacy Standard to help our employees integrate privacy and safety into all parts of our business. ", "Working with policymakers to help create comprehensive privacy legislation and reform of electronic surveillance laws in the United States and to develop privacy laws in emerging markets.", "Engaging with multilateral organizations such \nas the Organization for Economic Co-operation \nand Development, the Asia Pacific Economic Cooperation, the Council of Europe, and the International Telecommunications Union to create strong and consistent global frameworks for privacy and security policy.", "Taking down botnets and helping repair malware-infected computers.", "Working with other online services companies to integrate PhotoDNA and other disruptive technologies into their products.", "Continuing to work with industry, law enforcement, government, and nonprofit partners to fight cybercrime. Our focus will include:\n", "Updating the Microsoft Safety and Security website to give customers the most recent information.", "Supporting National Cyber Security Awareness Month, Safer Internet Day, and Data Privacy Day.", "Working with education partners to host more than 1,300 Family Online Safety Nights.", "Conducting privacy education campaigns.", "Increasing awareness of online safety and data privacy through efforts such as:\n", "Fighting online crime: In FY2011, the Microsoft Digital Crimes Unit coordinated a legal and technical action that took down the \n", "guide", "Working with policymakers: Online privacy and safety can be complex issues. We launched a new \n", "Read More", "| Impact Story: To help keep Pakistan’s children safe online, Microsoft held a workshop for parents and teachers on Internet safety. \n", "Working Responsibly: Privacy and Safety: Privacy and Security", "\nVIEWPOINT\n\nThe Honorable\nBrendan O’Connor\nMP Minister for Justice, Minister for Home Affairs, Minister for Privacy and Freedom of Information", "www.thinkuknow.org.au", "As part of the wider initiatives undertaken by the Government, the Australian Federal Police in collaboration with Microsoft and ninemsn established ThinkUKnow (\n", "Working Responsibly: Privacy and Safety: Privacy and Security", "Working Responsibly: Privacy and Safety: Privacy and Security", "Working Responsibly: Privacy and Safety: Freedom of Expression", "FREEDOM OF EXPRESSION", "Freedom of expression is a basic human right. The Internet is a powerful tool for free expression, and we support it as a vehicle for the exchange of information and ideas. ", "Some governments make demands of information technology companies that are inconsistent with international human rights standards.", "It can sometimes be difficult to distinguish between legitimate government demands and those intended to infringe on human rights.", "Compliance with local law is a condition of doing business and is necessary to ensure that services and information are available to users. ", "Giving anyone, anywhere the ability to express their ideas, personal or political", "Providing people with great tools to enable civic engagement and improved public services ", "Helping users take more control over \ntheir online identity and how they \nshare information", "Strategic litigation by the International Human Rights Clinic in the inter-American \nhuman rights system, aimed at defining \nnew precedents to help protect \npress freedom", "A speaker series on Internet freedom \nand human rights law", "Research, writing, and academic conferences on Internet freedom topics", "Providing financial support for the George Washington University Law School’s work on Internet freedom and human rights. We will specifically support three areas: \n", "Continuing our sponsorship of the Personal Democracy Forum, which helps share knowledge and insight on the use of technology in campaigns, organizing, and civic engagement.", "Hosting the fifth U.S.-China Internet Industry Forum, bringing together leaders from the United States and Chinese governments, industry, and civil society for candid discussions about Internet policy issues, including free expression.", "Continuing to provide financial and in-kind support to efforts to promote rule of law (including respect for freedom of expression). Specific efforts include support for the World Justice Project and for pro bono legal work by Microsoft employees.", "inaugural report", "In 2008, we worked with industry peers, civil society groups, academics, and investors to found the Global Network Initiative (GNI), an organization dedicated to advancing Internet freedom. The GNI principles and guidelines inform how we engage in markets throughout the world. In FY2011, we worked with the GNI to publish its \n", "GNI report", "Adopting a Freedom of Expression Policy: In FY2011 we adopted a company-wide Freedom of Expression policy to guide how we handle decisions about restricting or not restricting content. The policy is based on the GNI and international human rights standards, including the International Covenant on Civil and Political Rights and the United Nations Declaration on Human Rights. More on our policy is described in the \n", "Nonprofits", "Anti-piracy enforcement and nonprofits: Early in FY2011 there were allegations that authorities in Russia had used software piracy charges to confiscate computers and challenge nonprofits that had voiced opposition to the government. Regardless of whether these allegations were true, we wanted to make it clear that we opposed any such use of our property rights. We therefore created a new unilateral software license to allow nonprofits in certain countries/regions to use Microsoft software freely and legally. (See the \n", "\nSPOTLIGHT ON CIVIC ENGAGEMENT", "Working Responsibly: Privacy and Safety: Freedom of Expression", "Working Responsibly: Privacy and Safety: Freedom of Expression", "Working Responsibly: Integrity and Governance", "Integrity and Governance", "CORPORATE GOVERNANCE", "Trust in U.S. based corporations is near an all-time low. Good corporate governance practices build trust, create internal checks and balances, and strengthen management accountability. ", "The global financial crisis has amplified public distrust in corporations. ", "Financial scandals cause people to question the management of large businesses. ", "Shareholders feel a lack of control over the companies that they own.", "Expanding and deepening dialogue and \npartnership with stakeholders", "Advancing best practices through voluntary \nprinciples and disclosures", "Working through stakeholder collaboration and engagement to help address mistrust", "Microsoft sent its annual letter to our 50 largest investors from members of the Governance and Nominating Committee of the Board. ", "At least twice annually, members of management engage with a broad spectrum of our investors, including public pension funds and those representing the socially responsible investment community. The investors whom we contacted hold about 40 percent of shares outstanding. The Board receives a summary of feedback from these discussions.", "Microsoft Investor Relations website", "We redesigned and expanded the Corporate Governance and Citizenship content on the \n", "Microsoft on the Issues", "We regularly contribute governance-focused blog posts through the \n", "In FY2011, Microsoft achieved strong ratings from independent agencies.", "Independent members of the Board appointed Reed Hastings, founder, chairman, and CEO of \nNetflix Inc., as the Board’s lead independent director in December 2010. The lead independent director coordinates the activities \nof the independent directors, coordinates with the CEO and corporate secretary to set the agenda for Board meetings, chairs executive sessions of the independent directors, and performs other duties as determined by the Board. ", "Maintaining or increasing dialogue between shareholders and the company.", "Engaging in cross-industry forums to help us identify and contribute to the development of best practices. ", "Continuing to enhance our corporate governance principles and policies to serve the interests of our shareholders and other stakeholders.", "Implementing the regulatory and disclosure requirements adopted under the Dodd-Frank Wall Street Reform and Consumer Protection Act. ", "Working Responsibly: Integrity and Governance: Corporate Governance", "Working Responsibly: Integrity and Governance: Corporate Governance", "Working Responsibly: Integrity and Governance: Corporate Governance", "Working Responsibly: Integrity and Governance: Public Policy", "PUBLIC POLICY", "Political advocacy lets us promote our interests while sharing expertise and contributing to policies. Ultimately, we want what is good for both our business and society. ", "The public is understandably concerned by the influence of companies in government.", "Political advocacy is often seen as being done behind closed doors outside the view of the general public. ", "Governments sometimes lack technical expertise, particularly in emerging fields such as cloud computing.", "Taking action on issues of joint concern for companies and the public, e.g. education and jobs", "Contributing expertise on technical issues to help create policies", "Implementing strong guidelines and principles for corporate engagement to effectively prevent abuses ", "Political spending will reflect the company’s interests and be used to further its public policy agenda and not the personal agenda of individual officers, directors, or employees. ", "Microsoft does not make corporate contributions to any non-candidate or nonparty political committee organized under section 527 of the Internal Revenue Code. ", "No campaign contributions are given in anticipation of, in recognition of, or in return for an official act. ", "Completing a review and an update of our U.S. Political Principles; updates will include applying our disclosure requirements to a broader group of trade associations.", "Releasing an updated public policy agenda to share our priorities and areas of focus.", "Working with investors and advocates to continue enhancing openness, transparency, and accountability.", "Co-chairing the Conference Board’s newly formed Committee on Corporate Political Spending and, with fellow committee members, developing and publishing a report that provides corporations with resources to strengthen their governance practices in disclosure and accountability.", "Sharing best practices and lessons with other corporations.", "FY2011 policy agenda", "Public policy engagement: Microsoft engages in public policy discussions that directly relate to our business. We update our public policy agenda annually to reflect changes in the policy environment and in our business. Our \n", "political engagement section", "Memberships: Microsoft is a member of a number of trade associations and business coalitions globally that help us work collectively with industry peers to advance issues that affect our business and society. Our advocacy expense disclosures include association dues spent on advocacy. A full list of the trade associations and business coalitions supported by our Corporate Affairs group in the United States is available through the \n", "ten principles", "Participating in the political process in the United States: Our engagement in the political process in the United States is governed by \n", "Working Responsibly: Integrity and Governance: Public Policy", "Table_16", "TBody_16", "TR_16", "TD_66", "table_NOTE_6", "*The revised amount for FY2010 state-level expenditures now includes lobbying expenses for state government affairs work and state trade association dues spent on advocacy, in addition to consultant fees which were reported previously.", "Working Responsibly: Integrity and Governance: Public Policy", "* 2010 was a U.S. congressional election year. MSPAC contributions in 2010 were higher than those in 2009 as a result of increased political activity. ", "Working Responsibly: Compliance", "Compliance", "Compliance with laws and regulations is fundamental to working responsibly. Microsoft’s goal is to meet or exceed legal requirements by conducting our business ethically, responsibly, and with integrity. This is about doing the right thing and creating trust and not just about maintaining our license to operate.", "It is complicated to mandate accountability for compliance standards among more than 90,000 employees and contractors who work in many languages and across more than 100 jurisdictions.", "The different legal standards and expectations of many different countries and jurisdictions can be challenging to integrate.", "Going beyond training to build a strong culture of accountability", "Building trust with governments and industry stakeholders by adhering to laws and operating by our own guidelines", "Spurring technology innovation by enabling companies to build on one another’s products and platforms", "Promoting anticorruption initiatives among intergovernmental organizations and other multinational companies through our membership in the World Economic Forum Partnership Against Corruption Initiative. This engagement also shows our support for the United Nations Global Compact principles on anticorruption. ", "Partnering with the United Nations Office on Drugs and Crime to develop a technology tool to help in the fight against corruption and organized crime. The effort is creating a tool for transnational collaboration and enabling a new knowledge management portal. ", "Supporting the International Anti-Corruption Academy in sharing private-sector expertise on compliance and anticorruption.", "Being recognized by and receiving awards from groups such as Ethisphere Magazine, Corporate Secretary magazine, and the American Business Awards for the effectiveness of our compliance efforts and quality of our online compliance and ethics training initiatives.", "Working in partnership with governments around the world and intergovernmental organizations to achieve new compliance and ethical standards that create meaningful governmental guidance and industry practice.", "Adhering to our principles and releasing technical information about new Microsoft products to enable interoperability.", "Maintaining collaboration with international governance organizations and industry to promote good governance and compliance practices, particularly related to anticorruption.", "Interoperability Principles", "Promoting innovation, choice, and opportunities: We adhere to a range of principles, including our \n", "Working Responsibly: Compliance", "\nVIEWPOINT\n\nHuguette Labelle\nChair of the Board of Transparency International", "Global Network Initiative", "The commitments of the IT industry to the principles of transparency and third-party assessment included in the \n", "In addition, the \n", "Transparency International is the global civil society organization that is leading the fight against corruption.", "Working Responsibly: Compliance", "Global Reporting \nInitiative Index", "Global Reporting Initiative", "The \n", "www.microsoft.com/citizenshipreport", "For more information and downloads, view this \nreport online at \n", "About This Report", "GRI Index section", "We also relied on the Global Reporting Initiative’s Sustainability Reporting Guidelines to help determine relevant content and metrics for this report. An index of our performance on GRI indicators can be found in the \n", "In addition, you can find our annual \n", "mcitizen@microsoft.com", "We welcome your feedback on this report and on the Microsoft Citizenship approach. Please email your comments to \n", "Ongoing direct dialogue with a broad range of stakeholder groups, as well as with industry and issue-advocacy organizations.", "Updates to our \n", "Research and white papers on specific issues.", "Microsoft Local \nImpact Map", "Economic impact data and hundreds of \nstories through the \n", "Carbon Disclosure Project", "An annual submission to the \n", "About This Report", "PLEASE RECYCLE\nThank you." ]

[ "H3\nTable\nP_0\nP_1\nP_2\nP_3\nP_4\nP_5\nSect_2\nP_8", "H2_4\nP_16\nP_17\nP_18\nP_19\nP_20", "We approach our efforts around responsible sourcing based on the social and \nWe apply a risk-based approach to focus our efforts across our global base of \nWe also ask our suppliers to disclose the material composition for 100 percent of \neach device and packaging component they provide us. Today more than 100,000 \ndevice and packaging components have been evaluated for compliance. In addition, our Microsoft’s Device Supply Chain group suppliers are required to provide validation test results showing compliance with all global substance restrictions \nper our specifications. This digital data set is accessed by software that provides product-specific analyses of key metrics. This smart database allows us to use environmental engineering time efficiently to track and eliminate substances according to global regulations, market requirements, and our voluntary efforts. This process is a gating item in all new product development. \nTo monitor and evaluate the Microsoft Device Supply Chain group’s social and \nenvironmental performance of our suppliers we use an Audit Management Sys\ntem (AMS) built using Microsoft technologies/tools: Visual Studio, Visual Studio Team Services, Microsoft.NET, Azure SQL, and Azure blob storage. The tool is \nhosted on Microsoft Azure. Using Microsoft Power BI with AMS provides the abil\nity to build greater visual insight into the data. The AMS allows us to have “one source of truth” and, with the use of workflows, has enhanced our audit database \nRecognizing the vast number of raw materials and the complexity of our supply chain, Microsoft uses a risk-based approach to assess our raw material sourcing. This considers the following dimensions: risk to Microsoft’s supply chain, material-specific social and environmental risks and Microsoft’s ability to influence \nand impact production of those materials to assess and prioritize addressing the social and environmental risks associated with raw materials. \nOver the past several years, we also enhanced how we assess and manage social and environmental risks across the full range of our indirect suppliers. Micro\nsoft screens our non-hardware suppliers against 23 different ethical, social, and \nenvironmental risks by country and by commodity category. We apply assurance requirements for suppliers found to pose the highest risks. Among these, we have dedicated supplier training and assurance programs related to anti-corruption, privacy, and security. \nMicrosoft sparked the creation of the Committee on Supplier Ratings, a new \ncollaborative effort designed to help purchasers engage indirect suppliers on \nsustainability issues by leveraging a range of respected company rating systems. \n\n Read this article in Forbes magazine: Microsoft’s Committee on Supplier Ratings", "H2_33\nP_154\nP_155\nP_156\nP_157\nP_158\nP_159\nP_160\nP_161\nP_162\nP_163\nP_164", "We have more than 100 datacenters around the world that are delivering a secure, trusted, and responsible cloud. In May 2016, we announced a commitment to increase the percentage of wind, solar, and hydro energy we use to power these datacenters. \nAs of 2016, roughly 44 percent of the electricity used by our datacenters comes \n• Maintain carbon neutrality. Through investments in energy efficiency and procurement of renewable energy and carbon offsets, we will continue to be 100 \n• Retire all green attributes from projects generated from our contracted assets: Any time we purchase green energy, we will not sell the renewable energy \ncertificates (RECs, or international equivalents) or any other green “attributes” for \nThese commitments build on our work to advance renewable energy in our own operations and beyond: \n• In November 2015, we reaffirmed our commitment to renewable energy by joining RE100, a collaborative initiative of influential businesses committed to \n• In FY15 we purchased more than 3.2 million megawatt-hours (MWh) of re\nnewable energy, and in January 2015 the U.S. Environmental Protection Agency \n• In March 2016, we announced a unique public-private partnership between \nMicrosoft, the Commonwealth of Virginia, and Dominion Virginia Power to bring 20 MW of new solar energy onto the grid in Virginia. \n• In April 2016, we joined Amazon, Apple, and Google in filing an amicus brief \nthat supports the implementation of the Clean Power Plan (CPP) and its goal of expanding clean energy in the U.S. electricity sector. \nClimate and energy \n Our approach Principles People Planet Resources_0\nL_34\ntext_34\nL_35\ntext_35", "To support our \n compliance program\nPreventing retaliation is critical to the Business Conduct and Compliance Program. Microsoft maintains and communicates a non-retaliation policy that strictly prohibits retaliation against complainants who raise a compliance concern in good faith or refuse to do something that violates Microsoft’s Standards of Business Conduct, policies, or the law, even if the refusal results in the loss of business to Microsoft. Microsoft is committed to handling all inquiries discreetly \nand making every effort to maintain confidentiality or anonymity within the limits \nWe prohibit corruption of government officials and the payment of bribes or kickbacks of any kind. This applies whether in dealings with public officials or individuals in the private sector. \nMicrosoft’s Standards of Business Conduct and \n Anti-Corruption Policy for Repre sentatives\nWhile conducting business with Microsoft customers, Microsoft expects its Partners to commit to operating in full compliance with all applicable laws and regulations, and to adhere to the principles outlined in the \n Partner Code of Conduct\nMicrosoft provides all partners with a free, online anti-corruption training course, in multiple languages. Partners must provide their own anti-corruption training or Microsoft’s training to their employees. \nMicrosoft also expects its Suppliers to commit to operating in full compliance with all applicable laws and regulations, and to adhere to the principles outlined in the Supplier Code of Conduct. Microsoft’s Supplier Code of Conduct includes strong ethics and anti-corruption provisions, which are highlighted in an online \nSupplier Code of Conduct Training that suppliers must take and is available in \nBeyond clearly communicating our expectations, Microsoft vets certain partners and suppliers to help ensure that we only engage legitimate businesses with a reputation for integrity. We conduct risk assessment to identify higher-risk representative types, which were then vetted along with many other representa\ntive types. This includes channel partners, consultants, lobbyists, and other third parties engaged by Microsoft and its subsidiaries and joint ventures worldwide. In \naddition, we continue to have third-party reviews conducted for all new suppliers. Since the vetting program’s inception, Microsoft has screened nearly 100,000 \nrepresentatives and suppliers to enable Microsoft to monitor the risk profile and drive risk mitigation efforts accordingly. \nL_14\ntext_16", "Microsoft sets high standards for responsible business practices among our suppliers. We work hard to help our suppliers meet them. \nMicrosoft has relationships with thousands of suppliers around the globe, spanning both hardware suppliers that manufacture our devices and the components that go into them and indirect suppliers that provide everything from advertising services to building construction and maintenance. \nRegardless of the type, we expect all suppliers who do business with Microsoft to uphold the human rights, labor, health and safety, environmental, and business \ntry-leading Social and Environmental Accountability (SEA) program to ensure that \nour hardware and packaging suppliers conform to our Supplier Code of Conduct and additional device-related requirements for living conditions, safe working practices, and environmental, health, and safety protection. DSC also operates \nthe DSC Environmental Management System (EMS), a cross-company, ISO 14001 certified environmental management system that applies to all aspects of Microsoft’s hardware and packaging manufacturing supply chain, management and operations. \n• Microsoft’s Global Procurement Group created a formal responsible sourcing \nfunction in 2013 to consolidate and enhance its responsible sourcing activities with our indirect suppliers (our suppliers outside those that make our hardware devices and the components and raw materials that go into them.) \nMicrosoft also recognizes the role we play to enable and empower people to achieve the \n UN Sustainable Development Goals\nmeeting the Sustainable Development Goals set by the UN to improve people’s \nLearn about our actions to prevent modern slavery and human trafficking in our business and supply \nL_15\ntext_17", "Perhaps the most important driver of our success is culture. We fundamentally believe that we need a culture founded in a growth mindset. It starts with the beliefs that: \nWe learn about our customers and their businesses with a beginner’s mind and then bring solutions that meet their needs. We look to learn from the outside and bring that knowledge into Microsoft, while still innovating to surprise and delight our customers. \nThe world is diverse. We serve everyone on the planet by representing everyone \non the planet. We seek to be open to learning our own biases and changing our behaviors so we can tap into the collective power of everyone at Microsoft. We \ndon’t just value differences, we seek them out and invite them in. And as a result, \nour ideas are better, our products are better and our customers are better served. \nWe are a family of individuals united by a single, shared mission. We build on the ideas of others and collaborate across boundaries to bring the best of Microsoft to our customers. \nThrough Microsoft’s Global Human Rights Statement and as a signatory to the UN Global Compact, we’re committed to respecting the following human rights \n\n International Labor Organization (ILO) Declaration on Fundamental Principles and Rights at Work¹\n¹Those ILO principles are freedom of association and the effective recognition of \nthe right to collective bargaining; elimination of all forms of forced or compul\nsory labor; effective abolition of child labor; and elimination of discrimination in \nMicrosoft’s global Human Resources (HR) team advances our policies and programs to recruit, retain, and develop exceptional people. This team includes groups focused on compensation and benefits, talent and organizational capability, and diversity and inclusion. In addition to a central team, HR professionals \nare embedded within each group in Microsoft to ensure that every employee has \na clear point of contact and support on HR issues, from executive managers to \nL_25\ntext_25", "H2_55\nP_245\nSect_81\nP_249", "H2_74\nP_313\nP_314\nP_315", "Corporate responsibility experts increasingly call on companies to focus their re\nporting on “material CSR issues,” though they differ on how they define the term. \nWe apply the \n Global Reporting Initiative’s G4 Sustainability Reporting Guidelines\nthose ranking highest in both business importance to Microsoft and in impor\ntance to our key stakeholders. This aligns with how we set our CSR strategies and \nWe identified the top citizenship issues, using this approach. It reflects input gathered from our stakeholder engagement processes, consultation with Business for Social Responsibility (BSR) and other external experts, and consideration of the impact that Microsoft’s core businesses have. \nBeyond this analysis, our President and Chief Legal Officer, Brad Smith, clearly \narticulated how we prioritize our CSR issues and their link to our business success in a \n keynote speech\nwork in the tech sector and the private sector have an important role and responsibility, as do people across civil society, and as do governments around the world. \n o And our commitments to accessibility, global diversity and inclusion, and empowering communities to ensure that our cloud is inclusive. \nRead the full story of how Microsoft is working to create a trusted, responsible, and inclusive cloud. \nOur approach to reporting \n Our approach Principles People Planet Resources\nL_1\ntext_3\nL_2\ntext_4", "human rights. These teams have an immediate impact on rights holders by ensuring that their needs are reflected throughout Microsoft’s products, operations, and partnerships as a result of the policies and management systems they establish in product or service design, sales, business and employment practices, and by working with rights holders to achieve the realization of their rights. \nTwo groups with the greatest focus on Microsoft’s salient human rights issues both report directly to Microsoft’s President and Chief Legal Officer: \n• The Regulatory Affairs Team houses our policy efforts towards meeting freedom of expression commitments and our online safety standards. \nMany groups within Microsoft manage our broad range of supplemental human rights issues. The Microsoft Philanthropies team and our business ethics and anti-corruption work sit within the Corporate, External and Legal Affairs (CELA) group. The responsible sourcing program supports both the Windows and Devices Group (WDG), which is responsible for Microsoft’s software platform, \napps, games, store and devices that power the Windows ecosystem, and the \nGlobal Procurement Group, which sources the goods and services supplied to the Microsoft business. The topic of global diversity and inclusion in our workforce is managed by the Human Resources division, which implements the policies and programs to recruit, retain, and develop employees and to advance our cultural transformation. \n• Programs and centers of expertise manage Microsoft’s human rights program by providing business guidance on human rights in the form of policies, due diligence, training, and transparency. \nWithin Business and Corporate Responsibility, the Corporate and Social Responsibility Team (CSR) houses our human rights program management, responsible sourcing, transparency and reporting, and coordination of our overall engage\nment with key international organizations including United Nations agencies. The CSR Team also operates the Microsoft Technology and Human Rights Center. The Center prioritizes and coordinates human rights due diligence, identifies emerging risks and opportunities related to human rights, and promotes harmonized \napproaches to human rights across Microsoft. The Center also fosters dialogue to advance understanding of the human rights impacts of ICT. Through the Center, \nMicrosoft engages with a broad range of human rights groups, academics, and industry groups globally to share Microsoft’s experiences and lessons learned. \nThe work of the Technology amp; Human Rights Center is amplified by Microsoft’s CELA group, led by the President, Chief Legal Officer and Chief Compliance Officer of Microsoft. This group includes more than 1,300 business, legal, and corporate affairs professionals in 55 countries who are responsible for Microsoft’s \nlegal, intellectual property portfolio, patent licensing, philanthropic, government \naffairs, public policy, corporate governance, and social responsibility work. \nHuman rights \n Our approach Principles People Planet Resources_0\nL_8\ntext_9", "• The Regulatory and Public Policy Committee of the Microsoft Board of Directors \nis responsible for overseeing the company’s public policy work and related activi\n• Management of our participation in the political process in the United States is \nthe responsibility of the Vice President for US Government Affairs, who reports directly to Microsoft’s General Counsel, who reports to the company CEO. \n• The Microsoft Political Action Committee (MSPAC) Steering Committee, a bipartisan committee of Microsoft federal and state government affairs professionals, \nis responsible for oversight and day-to-day decision making related to political spending. Oversight of the committee spans corporate fund expenditures as well as employee and shareholder donations made via the MSPAC program. \nMicrosoft requires that those individuals who recommend corporate political contributions in the United States certify as to their knowledge of and adherence to these policies and practices. Outside ethics counsel reviews and approves all MSPAC and corporate political giving activities, filings, reports, and materials. Microsoft publishes MSPAC and corporate political spending reports semi-annually on the corporate website. \nPublic policy engagement \n Our approach Principles People Planet Resources\nMicrosoft sponsors MSPAC to enable Microsoft employees and shareholders to \nparticipate more effectively in the U.S. political process. The committee, created \nin 1988, informs its members about important issues and government decisions \nthat can affect Microsoft business. It also provides an opportunity for members \nto collectively support public policy positions that are important to Microsoft and the software industry. \nAs a bipartisan organization that contributes to the campaigns of federal, state, and local candidates, MSPAC typically supports candidates who share Microsoft’s views on public policy, serve as congressional or legislative leaders, represent districts or states where Microsoft has a major business presence, or serve on committees that have jurisdiction over legislation that is important to the company. \nThe MSPAC Steering Committee evaluates candidates’ public policy positions on \nissues that are relevant to Microsoft business or are of particular interest to the \ncomputer software industry. The committee—composed of senior managers in Legal and Corporate Affairs at Microsoft—then decides which candidates and \nPublic policy engagement \n Our approach Principles People Planet Resources_0", "Microsoft is committed to supporting our employees’ well-being with compre\nhensive benefits to help employees maximize their physical, financial, and social \n• The Microsoft Ergonomics Program, offering employees ergonomic assessment \nand training programs and special furniture, equipment, and software for medical needs. \noffering comprehensive health and wellness services and clinics at some other \nIn addition to our wellness programs, Microsoft’s Health and Safety program \nintegrates appropriate safety and health practices into our operations, and works for continual improvement in employee health and safety. As part of this commitment, health and safety professionals assess the safety risks of Microsoft work activities and engage with workers and management to implement safe work \npractices, hazard controls, and training to minimize safety risks. They also assess \nnew workspaces as they are constructed and existing workspaces periodically to ensure sound design-for-safety principles are followed and needed controls are \nimplemented effectively. As part of this approach, Microsoft involves employees and managers in Health and Safety Committees specific to our datacenters, retail \nOver the past several years, we have worked to enhance our capacities to protect employee health and safety as the diversity of our operations has grown and exposed our employees to new types of workplaces. In FY16, our manufactur\ning facilities had an injury-incident rate of 0.14 and a lost-day rate of 0.11 (our 12-month rolling average for July 1, 2015—June 30, 2016 based on US OSHA rules \nL_26\ntext_26", "H5_4\nSect_29\nP_71", "\n Microsoft 2016 Corporate Social Responsibility_12\nL_18\ntext_19\nL_19\ntext_20\nL_20\ntext_21\nL_21\ntext_22", "H2_37\nL_24\nP_181\nP_182\nP_183\nP_184\nP_185\nP_186\nP_187", "H2_7\nP_35\nP_36\nP_37\nP_38\nP_39\nP_40", "TR_2", "TD_19\nTD_20\nTD_21\nTD_22\nTD_23\nTD_24\nTD_25\nTD_26", "Microsoft’s \n Responsible Sourcing of Raw Materials\nethics. This commitment is global in scope and applies to all substances used in \nRaw material supply chains are complex due to the multiple levels of processing \nand the diverse usages across different industries. Given this complexity, we are focusing our efforts to influence social and environmental improvements in the \nextractive industries through strategic collaborations that achieve our goal at scale. Microsoft actively works with other companies, global and local non-governmental organizations, and industrial associations to support standards-setting, \nExamples of our collaboration and capability building efforts include Microsoft’s support and participation in the work of several industry and NGO organizations \ndirectly related to our upstream supply chain, such as Pact and the Initiative for Responsible Mining and Alliance for Responsible Mining, which are listed among the groups we collaborated with in FY16 in our document listing partnerships with \nWe have collaborated with our suppliers and other hardware companies since \nAs directed by the Dodd-Frank Act, the Securities and Exchange Commission (SEC) requires registrants whose products contain certain “conflict minerals” (tungsten, tin, tantalum, or gold, referred to as “3TG”) to report annually whether \nthose minerals originate from the Democratic Republic of the Congo (DRC) or an \nadjoining country. The act seeks to remove one of the main motives for armed conflict in this region—control of lucrative mines. \nMicrosoft has published a Conflict Minerals Report annually since 2014. Our latest Conflict Minerals Report, published in May 2016, demonstrates meaningful efforts and progress toward establishing a “conflict-free” supply chain. The number of certified conflict-free smelters in our supply chain increased from 148 to 213, due to enhanced supplier outreach and the maturation of the Conflict Free Smelter \nProgram (CFSP), of which we were an original participant and remain a strong supporter. \nOur conflict minerals tracking efforts are aligned to the Organization for Economic Cooperation and Development (OECD) \n Due Diligence Guidance for Respon sible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas.\nMicrosoft’s full material declarations database for our hardware products enables us to identify every component in our current device portfolio containing tin, gold, tantalum, or tungsten. We then identify the suppliers of these components with the assistance of Sourcing and Manufacturing and educate the suppliers \nResponsible sourcing \n Our approach Principles People Planet Resources_3", "TR_3", "TH_4\nTD_27\nTD_28\nTD_29\nTD_30", "The Global Compact is the most widely recognized corporate social responsibility \n(CSR) framework for businesses to respect human rights and labor rights, and to ensure environmental protection and combat corruption. Microsoft enhanced this \ncommitment when we published our Global Human Rights Statement in 2012. \nOur \n Global Human Rights Statement United Nations Guiding Principles on Business and Human Rights,\ninvolved.” This is now a global standard of conduct expected of all businesses. \n\n International Labour Organization’s Declaration of Fundamental Principles and Rights at Work \nTo achieve our mission of empowering every individual and every organization, we recognize that some human rights and some specific groups require a special \nfocus. Several conventions help Microsoft identify how we can better support \nsome of the world’s most vulnerable groups and the extra efforts we can take to maintain their trust. These include: \n\n Convention on the Elimination of All Forms of Discrimination against Women \nMicrosoft revised its Global Human Rights Statement in 2016 to reflect changes to \nIn addition to being publicly available in twelve languages, the Statement is shared among all employees globally through our \n Standards of Business Con duct\nL_3\ntext_5", "Microsoft regularly files and publishes reports that detail our advocacy activities. Our disclosures \ninclude consultant fees, lobbying expenses, and trade association dues spent on advocacy. \nPublic policy advocacy spending \n0 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 \nPublic policy engagement \n Our approach Principles People Planet Resources_1\nIn addition, Microsoft has adopted \n Principles for Engagement in the Public Policy Process in the United States\nUnder these policies, we commit to disclosing a semi-annual list of election cam\npaign expenditures, including financial and in-kind contributions by the company \nand MSPAC to candidates, political parties, political committees, and other politically active tax-exempt organizations, such as those organized under Internal \ncontributions, we do not make corporate contributions to any non-candidate or non-party political committees organized under section 527 of the Internal Revenue Code, which are formed solely to influence elections. We also make no independent political expenditures or electioneering communications, as permitted under the US Supreme Court’s Citizens United ruling, and we inform our trade associations that no Microsoft funds may pay for their independent expenditures or electioneering communications. \nTo find reports detailing Microsoft’s political contributions including MSPAC contributions, corporate contributions, and trade association memberships, please visit the \n 2016 Reports Hub\nLike all major corporations, Microsoft is a member of a number of trade associations (organized under section 501(c)(6) of the Internal Revenue Code) in the United States to help advance our public policy agenda and related business goals. We publicly disclose and update annually a list of those trade associations \nto which Microsoft pays dues and makes other expenditures through our Legal amp; Community Affairs group. Each year, Microsoft inquires and makes a reasonable effort to obtain information about what portion of the company’s dues or payments were used for lobbying expenditures or political contributions from those \nassociations where our dues and other expenditures total $25,000 or more. This \nResponsible sourcing \n Our approach Principles People Planet Resources", "H2_50\nP_224\nP_225\nP_226\nP_227\nP_228\nP_229\nP_230\nP_231\nP_232", "Microsoft works to drive greater inclusion and empowerment of people around the globe with all the assets at our disposal. \ngovernments, and individuals are using Microsoft technology to improve lives in their communities. \nThe \n Lagos Solar project Microsoft Azure Internet of Things\nand allows for remote monitoring and maintenance, ensuring that clinics and schools across the state of Lagos have access to electricity when they need it. \n\n Partners in Health\nshare information with specialists as they provide life-saving healthcare for marginalized populations in remote parts of the world. \nInternational software provider Temenos relies on Microsoft Cloud services to \nreach people across Myanmar who lack access to banking, giving them opportunities for more \n financial stability and access to microcredit\nMicrosoft localizes product user interfaces, documentation, proofing tools, and market-specific keyboards, fonts, and content for Windows in 111 languages, Office in 91 languages, and across many languages and markets for Azure, Bing, \nMicrosoft also offers a wide range of translation products and features. These include Skype Translator and Microsoft Translator, a cloud-based automatic translator that supports over 50 languages for text translation. The Translator \nsystem provides text-to-text translation; speech interpretation (audio-to-audio or audio-to-text) using Microsoft’s speech service tuned for conversational content; \nand speech synthesis for a variety of voices and genders. Translator is used by many Microsoft products including Bing, Skype, Cortana, and Office. Apps for iOS, \nThe video series \n Thinking beyond the limitations\nbeing used to empower people across the planet to achieve their dreams. ", "We seek to provide products and services that create solutions for environmental challenges. \nrunning their own private datacenters. One study found that moving to Microsoft \n cloud services Microsoft Azure\nDevices ranging from appliances and fixtures to equipment, vehicles, and \ncharging stations generate massive amounts of information on resource use, \ndramatically expanding opportunities for data-driven sustainability. This data represents a significant opportunity to make more accurate decisions, achieve greater efficiencies, and become more sustainable in areas like energy, water, \nbuildings, and transportation. Microsoft is investing to help customers manage resources more effectively using big data through tools for \n Windows Server and Windows Azure\nFor example, to increase the use of renewable energy, data can help grid operators understand and anticipate energy demand, production capabilities of renewable and non-renewable energy sources, and consumption in almost real time. By better balancing these resources, utilities can enable more responsive energy generation. Microsoft recently partnered with \n Agder Energi\nMicrosoft CityNext partners provide solutions spanning buildings, energy, and transportation to help make cities more sustainable by minimizing their resource use and environmental impact. \nMicrosoft and its partners deliver these solutions for urban sustainability through: \nBuildings, infrastructure, and planning: Microsoft partners are delivering cloud-based solutions that lower building energy consumption and improve the performance of buildings. By using cloud-based analytics and business intelligence \ncapabilities, buildings can be smarter and more efficient and save 10-20 percent \nEnergy: Microsoft partners use digital technology to integrate and manage distributed energy supply and demand data, improving the reliability, security, and \nTransportation: Microsoft partners are helping to improve the design and operation of transport networks and run real-time data systems that can facilitate \nOver 150 CityNext \n partners", "As we have publicly disclosed, if a government wants our customers’ data, it must serve us with the appropriate warrant, court order, or subpoena targeted at specific accounts and identifiers. We reject requests that don’t meet these requirements, and we only provide the data specified in the legal order. \nWe are transparent about how we handle government requests for user information in a series of Law Enforcement Requests Reports and National Security Request Reports that we publish every six months. To expand the information \nthat we can legally share in those reports, we brought and settled a suit with the \nU.S. government allowing us to disclose the number of legal national security requests we receive. We currently have a case pending against the U.S. government challenging the growing number of search warrants with secrecy orders that would prohibit us forever from letting users know that the government had obtained their e-mail. \nTo stand up for our users’ rights, we and others in our industry are pushing for \nreform in government surveillance. We have publicly advocated that governments must create a new international legal framework to ensure that governments seek information about private citizens of other participating countries \nonly pursuant to legal rules and due process. We successfully challenged an effort \n\n Watch Microsoft President and Chief Legal Officer Brad Smith urge that Congress\nCorporate governance and \n Our approach Principles People Planet Resources\nL_10\ntext_11", "\n Learn more about Microsoft’s Board and its committees \nShareholder engagement \nL_11\ntext_12", "Through oversight, review, and counsel, Microsoft’s Board of Directors establishes and promotes our business and organizational objectives. \nOur corporate governance framework is designed to ensure our Board has the necessary authority and practices in place to review and evaluate our business operations and to make decisions independent of management. Our goal is to align the interests of directors, management, and shareholders, and comply with \nor exceed the requirements of the NASDAQ Stock Market and applicable law. This \nMicrosoft believes that effective corporate governance should include regular, \nconstructive conversations with our shareholders. We actively engage with our shareholders as part of our annual corporate governance cycle. Communicating governance policies and practices to all shareholders and other stakeholders is an important part of our commitment to transparency. With over 3.5 million Microsoft shareholders, using both direct dialogue and ‘one-to-many’ communications are necessary to reach all shareholders. \n\n Learn more about our Shareholder Outreach and Corporate Governance Cycle \nCorporate governance at Microsoft is designed to promote the long-term interests of our shareholders, maintain internal checks and balances, strengthen management accountability, inspire public trust, and foster responsible decision making and accountability. Our corporate governance framework consists of our \nArticles, Bylaws, and a set of policies and guidelines. The Board routinely reviews \nevolving practices to determine those practices that will best serve the interests of our shareholders. \nL_12\ntext_13", "H2_27\nP_130\nP_131\nP_132\nP_133", "H2_63\nP_268\nP_269\nP_270\nP_271\nP_272\nP_273\nP_274\nP_275\nP_276", "Our commitment to transparency \nMicrosoft provides a number of disclosures to help stakeholders evaluate how we are meeting our commitments to corporate social responsibility. \nDigital trust reports \n\n Law Enforcement Requests for User Data\nU.S.\n National Security Orders for User Data Content Removal Requests\nHuman rights _0\n\n Salient Human Rights Issues Report\n\n Microsoft Report on the GNI Independent Assessment in 2015-2016\n\n GNI Annual Report Microsoft responses: Business amp; Human Rights\nResource Center \nFacts about Microsoft \n\n Subsidiaries Operation Centers\n\n Revenue and Headcount Employment Information", "Environmental sustainability \n\n 2017 CDP Climate Change Response 2017 CDP Water Response CDP Climate Reports – CDP.net CDP Water Reports – CDP.net\n\n 2016 Data Factsheet: Environmental Indicators Microsoft 2015 Citizenship Report Environmental\nData Addendum \nWorkforce diversity and inclusion _0\n\n EEO-1 Report\n\n Workforce demographic data\nMicrosoft Investor Relations reports \n\n Microsoft Proxy Statement Microsoft Annual Reports\n\n Microsoft SEC Filings\n\n Microsoft top 100 production suppliers for hardware products\n\n Microsoft Slavery and Human Trafficking Statement FY16\nUnited Nations Global Compact _0", "\n Planet Resources\nL_0\ntext_2", "H2_20\nP_90\nP_91\nP_92\nP_93\nP_94\nP_95\nP_96\nP_97", "L\ntext_1", "The International Association of Privacy Professionals (IAPP) has recognized us for having the ‘second largest number of certified privacy professionals (CIPP) of any \nDedicated privacy professionals are embedded into each of our product and service groups. These professionals help our groups to incorporate privacy considerations into our design and development processes. This is one of the many ways \nIndustry Association to establish a common set of principles to protect the privacy of student information. \n• Adopting, with independent verification, the world’s first international standard for cloud privacy (ISO/IEC 27018). This standard, developed by the International \nOrganization for Standardization, establishes a uniform, international approach to protecting privacy for personal data stored in the cloud. \n• Being among the first companies certified under the EU-US Privacy Shield program. \nWe’ve also created new processes to help put victims back in control of their on-line imagery and their privacy, with a new \n approach\n\n Learn more about Microsoft’s privacy protections and transparency on the data we do collect \nL_9\ntext_10", "H2_21\nP_99\nP_100\nP_101\nP_102\nP_103\nP_104\nP_105\nP_106", "H2_29\nP_136\nP_137\nP_138\nP_139\nP_140", "H2_34\nP_166\nP_167\nP_168\nP_169\nP_170\nP_171", "For more than two decades, our Global Diversity and Inclusion Office has evolved \nand enhanced the company’s diversity and inclusion initiatives so that we can continue to meet the changing needs of our workforce and business. We are deeply committed to creating an inclusive environment where all employees can do their best work. \nDeepening leader and manager understanding of our diversity strategy and its value proposition. \nWe know that Microsoft, like the rest of the tech industry, must do more to fully \nreflect the diversity of the global population. As a result, this past fiscal year, we’ve \nput renewed focus and thought into advancing the diversity and inclusion agenda within the company. We developed and rolled out key priorities, resulting in our \nFY16 Global Diversity and Inclusion Strategy, which was reviewed and approved \nOur emphasis on diversity is not purely a conversation about the numbers—it is \nas much a focus on our attitudes and behaviors as leaders that drive the num\nbers. That being said, it is important that we track and report on our diversity data, Through our \n Global Diversity and Inclusion website\nWe realize there is still hard work ahead to make our commitment and focus on diversity and inclusion a truly integrated part of the company’s standard business practices. We are inspired by the opportunities that lie before us and believe that the diversity of our workforce and inclusiveness of our culture will continue to play a critical role in helping us deliver innovations that will bring ultimate value to our customers. ", "Microsoft envisions a world in which technology can help enable people and organizations to accelerate innovation in and deployment of clean energy technologies, achieve more sustainable economic growth, and drive a transformation toward smarter use of resources. Microsoft is committed to taking responsibility for and mitigating our impact on the environment. \nMicrosoft has made important progress on sustainability as a company since the start of this decade. We have operated carbon neutral across the company, including our datacenters, since 2012. We are committed to accelerating the \ntransition to a clean energy infrastructure. To that end, last year we purchased \nmore than 3.2 billion kilowatt hours of zero-carbon power and worked with our \nutilities and suppliers to improve the access and affordability of renewable energy. We also look for ways to increase energy efficiency across our facilities and our \nBut we know that there’s much more work to do to address climate change and advance sustainability, as the datacenter industry is an increasingly large consumer of natural resources. \nToday, large operators like Microsoft consume as much energy as small states, \nand by the middle of the next decade, they will rank among the largest users of electrical power on the planet. From FY15 to FY16, in North and South America combined, our datacenter energy consumption grew from 1,900,000 MWh to \n2,400,000 MWh; in Europe, Middle East, and Africa, our datacenter consumption grew from 450,000 MWh to 600,000 MWh; and in Asia Pacific, our datacenter consumption grew from 200,000 MWh to 300,000 MWh. To minimize the impact \nof our growth on the climate, we have therefore increased our commitment to make our energy mix less carbon-intensive. \nWe believe in building a responsible cloud. For Microsoft, this means moving beyond datacenters that are already 100 percent carbon neutral to also having those data centers rely on a larger percentage of wind, solar, and hydro power electricity over time. Today, roughly 44 percent of the electricity used by our datacenters comes from these sources. Our goal is to pass the 50 percent milestone by the end of 2018, to top 60 percent early in the next decade, and then to keep improving even further from there. We’re committed to continuous improvement on an ongoing basis. ", "H2_60\nL_32\nP_259\nP_260\nP_261\nP_262", "At Microsoft, our mission is to empower every person and every organization on \nthe planet to achieve more. To realize that mission requires more than providing \nproducts and services that let our customers do great things. It requires us to be thoughtful about the impact of our own business practices, policies, and investments in communities. \nAnd it’s not a mission we can achieve alone. It requires partnerships to apply our technologies to address some of the world’s toughest challenges. \nIn short, we see corporate responsibility as both a responsibility and an opportunity to work together to advance technology and societal needs at the same time. \nThe \n charter for the Regulatory and Public Policy Committee\nMicrosoft’s Business and Corporate Responsibility (BCR) team is part of our Cor\nporate, External, and Legal Affairs group. BCR works in collaboration with leaders \nacross Microsoft’s business and operations to help us consistently earn the trust and confidence of the public, our customers, partners, employees and shareholders. The Corporate Vice President of Business and Corporate Responsibility reports directly to Microsoft’s President and Chief Legal Officer, who reports to CEO Satya Nadella and sits on Microsoft’s Senior Leadership Team. \nLearn more about the committee of the Board of Directors responsible for overseeing the company’s policies and programs, including public policy and corporate citizenship. ", "LI", "LBody\nLBody_0\nLBody_1\nLBody_2", "LI_0", "LBody_3\nLBody_4\nLBody_5\nLBody_6\nLBody_7\nLBody_8\nLBody_9\nLBody_10\nLBody_11\nLBody_12", "H2_13\nP_55\nP_56\nP_57", "H2_16\nP_75\nP_76\nP_77\nP_78\nP_79", "LI_19\nLI_20", "P_124\nP_125\nP_126\nP_127\nP_128\nP_129", "H2_40\nP_190\nP_191\nP_192\nP_193\nP_194", "H2_58\nP_251\nP_252\nP_253\nP_254", "products and platform capabilities we offer our customers and partners, and our global partnerships with governments, academics, and nonprofits. \nMicrosoft’s commitments to environmental sustainability are articulated in our environmental principles and embedded in other corporate policies: \nMicrosoft has been carbon neutral since June of 2012, and we’re committed to lean, green, and accountable business practices. We have implemented an \ninternal carbon fee, which puts a price on carbon. The fees we collect are used to improve energy efficiency, increase our purchase of renewable energy, and fund community projects that offset carbon and advance sustainable development around the world. Microsoft has also invested in programs that reduce environmental impact across its worldwide business operations, from facilities to commuting to recycling our food waste. \nMicrosoft’s manufacturing is certified to the International Organization for Standardization (ISO) 14001 Environmental Management System. This includes our European Operations Center, all Microsoft-owned manufacturing sites, and all the contract manufacturing facilities of our Tier 1 hardware suppliers. Microsoft also earned a cross-company, corporate-level ISO 14001 certification for hardware and \nToday, large operators like Microsoft consume as much energy as small states, _0\nand by the middle of the next decade, they will rank among the largest users of electrical power on the planet. From FY15 to FY16, in North and South America combined, our datacenter energy consumption grew from 1,900,000 MWh to _0\n2,400,000 MWh; in Europe, Middle East, and Africa, our datacenter consumption grew from 450,000 MWh to 600,000 MWh; and in Asia Pacific, our datacenter consumption grew from 200,000 MWh to 300,000 MWh. To minimize the impact _0\nof our growth on the climate, we have therefore increased our commitment to make our energy mix less carbon-intensive. _0\nWe meet our goal for corporate carbon neutrality, and we have made a commitment to powering our datacenters with at least 50 percent wind, solar and hydropower by the end of 2018, exceed 60 percent early in the next decade, and keep improving further on an ongoing basis from there. ", "Microsoft Real Estate and Facilities teams around the world implement waste minimization programs, including office supply reuse, recycling, and in many cases, \ncomposting. Our Redmond, Washington dining facilities divert 99 percent of the \nwaste from the landfill by recycling, using compostable tableware, and adapting \nWe’ve also achieved a goal of zero waste from our global headquarters facili\nties in Puget Sound, Washington, which currently represents approximately 45 percent of our total real estate portfolio. Consistent with zero waste certification, we divert 90 percent of our Puget Sound campus waste from landfills, and we are \nworking to increase that number and extend that goal to additional campuses in the U.S. and around the globe. We also continue to work on reducing the amount \nIn addition to promoting \n recycling\nand reuse of e-waste, helping reduce life-cycle energy consumption and greenhouse gas emissions, and minimizing hazardous waste. In FY15, this program \navoided over 4,000 metric tons of carbon dioxide equivalent (mtCO2e); in FY16, \nWhen we do generate waste, we recycle whenever possible, and dispose of any remainder as required by local regulations. We have also developed an auditing program to verify that any facility that handles our waste for recycling or disposal does so responsibly, in compliance with environmental regulations. ", "L_36\ntext_40", "LI_61", "LBody_133\nLBody_134\nLBody_135\nLBody_136", "Principle 4: \nThe elimination of all forms of forced and compulsory labor; \nPrinciple 5: \nthe effective abolition of child labor; and \nPrinciple 6: \nthe elimination of discrimination in respect of employment and occupation. \nPrinciple 7: \nBusinesses should support a precautionary approach to environmental challenges; \nPrinciple 8: ", "TR_1", "TH_3\nTD_16\nTD_17\nTD_18", "H2_35\nP_173\nP_174\nP_175\nP_176\nSect_56", "H2_42\nP_198\nP_199\nP_200\nP_201\nP_202\nP_203", "Microsoft Research and product teams also collaborate with disability experts \nto create new uses for technologies that can dramatically benefit people with a range of abilities. This includes working to improve the experience of people \n\n See how former NFL player Steve Gleason worked with Microsoft to use technol ogy to empower him and others with ALS\nEmpowering communities \n Our approach Principles People Planet Resources\nL_29\ntext_30", "Sect_95\nLI_59", "H2_9\nP_43\nP_44\nP_45\nP_46", "Sect_36\nLI_23\nSect_37\nLI_26", "H2_23\nP_109\nP_110\nP_111", "In October 2016, Microsoft launched a cloud policy roadmap that seeks to maximize the opportunities and minimize the challenges that cloud computing brings. \nThis roadmap covers fifteen policy areas and provides a comprehensive set of 78 \nrecommendations and considerations grounded in three core principles: We need a trusted cloud; we need a responsible cloud; and we need an inclusive cloud to ensure nobody is left behind. \nThe roadmap presents our perspectives on policies to harness the social and economic benefits of cloud computing to benefit everyone, not just the fortunate \n• Trusted with policies addressing personal privacy, government access to data, \n• Responsible with policies that balance human rights and public safety, prevent technology fraud and online exploitation, promote environmental sustainability, \n• Inclusive with policies enabling affordable and ubiquitous access, digital literacy, \nnext generation skills, including people with disabilities, and supporting businesses of every size. ", "H2_45\nL_28\nP_209\nP_210", "Our purchase of green energy through this program has earned us recognition from the U.S. Environmental Protection Agency (EPA) as a 2016 Climate Leadership award winner, and our work has been recognized by the United Nations Framework Convention on Climate Change (UNFCCC) as a 2015 Lighthouse Activity winner in the Momentum for Change initiative. \nFor the past several years, Microsoft has published white papers that provide an update on our progress and impact to date. This year, we are evolving our program to go “beyond carbon neutral” and promote local and global good. We are \nfocusing on developing new renewable energy projects, supporting sustainable development through community projects, advancing energy and efficiency innovation through Climate Grants, and expanding our reporting to better measure \n\n Download our whitepaper: Expanding beyond our carbon neutral operations to accelerate global and\nL_33\ntext_33", "LI_58", "LBody_126\nLBody_127\nLBody_128\nLBody_129", "P_293\nP_294\nP_295\nP_296\nP_297\nP_298", "H2_72\nP_307\nSect_100\nP_310", "Principle 9: \nthe effective abolition of child labor; and _0\nPrinciple 6: _0\nencourage the development and diffusion of environmentally friendly \ntechnologies \nAnti-corruption \nPrinciple 10: ", "This site contains Standard Disclosures from the \n Global Reporting Initiative’s G4 Sustainability Reporting Guidelines\nThe human rights-related disclosures are based on the UN Guiding Principles on Business and Human Rights Reporting Framework (RAFI). In addition, this report \nserves as Microsoft’s annual Communication on Progress under the \n United Na\n\n tions (UN) Global Compact\nBusinesses should uphold the freedom of association and the effective recognition of the right to collective bargaining; \nundertake initiatives to promote greater environmental responsibility; and \nBusinesses should work against corruption in all its forms, including extortion and bribery. ", "L_5\nLI_11", "additional downloadable report. \nFurther reporting is available for the supplemental issues of: \n\n Responsible sourcing \n\n Corporate governance and ethics \n\n Diversity and inclusion \n\n Our philanthropic activities \n\n Microsoft 2016 Corporate Social Responsibility_4", "LBody_40\nLBody_41\nLBody_42\nLBody_43\nLBody_44\nLBody_45\nLBody_46", "Sect_46\nL_16\nLI_32", "H2_47\nP_213\nP_214\nP_215\nP_216", "Beyond its own accessibility features, Microsoft Office also includes an Accessibility Checker that helps users author accessible documents and presentations. \nAnd Microsoft offers guidance on accessibility to our users with accessibility help content available in over 40 languages. \nThis service offers free technical support for Windows and Office to persons with a disability or customers who have questions related to accessibility. The support team is trained in using many popular assistive technologies and can offer assistance in English, Spanish, and French through phone or online chat, and American Sign Language (ASL) via videophone in the U.S. \nindustry. The Microsoft Accessibility Developer Center provides guidance, tools, \nWe also seek to provide tools and guides that help governments, schools, and businesses to integrate technology for individuals with disabilities. For instance, Microsoft is a signatory to the \n Global Initiative for Inclusive Information and Communications Technology (G3ict) Charter\nTo encourage governments to consider accessibility in their purchasing, we provide self-declarations of conformance to external purchasing standards, including: \n\n Declarations for accessibility requirements suitable for public procurement of ICT products and services in Europe (EN 301 549)", "H2_52\nP_235\nP_236\nP_237", "H2_54\nP_240\nP_241\nSect_79", "H2_59\nP_256\nP_257", "H2_68\nP_288\nP_289\nP_290", "H2_71\nP_300\nP_301\nP_302\nP_303\nP_304\nP_305", "In September 2015, the UN General Assembly agreed to \n 17 global Sustainable Development Goals\nMicrosoft’s mission to empower every person and every organization on the planet to achieve more aligns strong\nly to the UN SDGs. To better understand how we and other information technology companies can advance the goals, Microsoft was a lead sponsor of a report by the Global E-Sustainability Initiative (GeSI) and Accenture called “\n #SystemTransformation\nIn September 2016 we produced a white paper to identify ways in which Microsoft contributes to the global effort to achieve the SDGs. (Read the report \n here\nThis document is provided as is. Information and views expressed in this document, including URL and other Internet website references, may change without \nThis document does not provide you with any legal rights to any intellectual property in any Microsoft product. \nBing, BizSpark, DreamSpark, Imagine Cup, Internet Explorer, Office, Office 365, Outlook, Microsoft, Microsoft Azure, Microsoft Dynamics, Microsoft YouthSpark, PhotoDNA, OneDrive, Skype, Surface, Windows, Xbox, Xbox 360, Xbox One, Xbox LIVE, and Yammer are trademarks of the Microsoft group of companies. All other ", "TR", "TD\nTD_0\nTD_1", "Principle 1: \nBusinesses should support and respect the protection of internationally proclaimed human rights; and \nPrinciple 2: \nMake sure they are not complicit in human rights abuses. \nLabor \nPrinciple 3: ", "LI_5\nSect_15\nLI_7\nSect_16\nLI_9\nSect_17", "H2_24\nP_113\nP_114\nP_115\nP_116", "Learn more about Microsoft’s raw materials sourcing strategy and programs. \n\n Download our policy on Responsible Sourcing of Raw Materials (PDF)\nAt the core of Microsoft’s responsible supply chain sourcing efforts is our Social and Environmental Accountability (SEA) program. \n\n Download the Microsoft Hardware Supplier Audit Approach and Findings\n\n Planet Resources_5\nSupplier SEA Engagement Approach ", "Empowering our employees _0\nLink_38\nLink_39\nLink_40\nLink_41\nLink_42", "Microsoft is committed to ensuring that our products and services are designed for everyone. \nIn fact, we’ve found that many of our accessibility-focused innovations and features allow us to deliver richer and more flexible user experiences for a considerably wider range of people, not just those with disabilities. \nL_27\ntext_27", "The \n MySkills4Afrika program\norganizations (NGOs), Microsoft partners, and governments across the continent. \nThe \n Microsoft Affordable Access Initiative\ntechnology solutions, business models, and policies that help close the digital divide. \n\n Watch these videos about our affordable access programs and partnerships\nThrough \n CityNext", "Transparency is important to our customers, investors, and partners. Microsoft \nhas a longstanding history of disclosing our carbon footprint, and we have reported voluntarily on our carbon emissions through CDP (formerly the Carbon \nDisclosure Project) since 2005. Data on our carbon emissions are available on the \nMicrosoft can have even more impact by influencing the sustainability of our supply chain. Toward that end, we encourage our contracted hardware suppliers \nto report their emissions to CDP and encourage all of our indirect suppliers to \nreport as well. In recognition of our climate efforts, CDP has included Microsoft ", "Link_63\nLink_64\nLink_65\nLink_66\nLink_67\nLink_68", "Link_69\nLink_70\nLink_71\nLink_72\nLink_73\nLink_74", "Link_84\nLink_85\nLink_86\nLink_87\nLink_88\nLink_89", "Link_90\nLink_91\nLink_92\nLink_93\nLink_94\nLink_95", "Link_96\nLink_97\nLink_98\nLink_99\nLink_100\nLink_101", "H5\nP_6\nP_7", "Link_4\ntext_0", "10 \n51 \nLink_8\nLink_9\nLink_10", "15 \n53 \nLink_11\nLink_12\nLink_13", "17 \n54 \nLink_14\nLink_15\nLink_16", "Link_28\nLink_29\nLink_30\nLink_31\nLink_32", "H2_11\nP_49\nP_50\nP_51", "H5_5\nP_67\nP_68\nP_69\nP_70", "LI_27\nSect_39", "Corporate participation in the public policy process is an important and essential means of enhancing shareholder value. It is also fundamental to free and democratic societies. \nWe strive to ensure that our participation in the political process is open, trans\nparent, and based on reasons that are clear and justifiable to our shareholders \n• Giving individual political employee donations through the Microsoft Political \nMicrosoft is recognized as a leader for policies that ensure the accountability and transparency of our public policy engagement. During FY16, we received the second highest rating in the 2016 ", "quality of life, protect the environment, and foster equitable growth. \nMicrosoft seeks to hold our suppliers to high standards for responsible sourcing. \n\n Download a list of our top 100 production suppliers\nAll suppliers who do business with Microsoft must uphold responsible practices. \n\n Read Microsoft’s Supplier Code of Conduct ", "chain. \n\n Download Microsoft’s Slavery and Human Trafficking Statement for fiscal year 2016\nLearn how Microsoft is working to help realize important goals set forth by the UN. \n\n Download DSC Contributions to Achieving Select UN Sustainable Development Goals\n\n Microsoft 2016 Corporate Social Responsibility_10", "LI_44\nSect_65\nLI_46\nSect_66", "Inclusive hiring isn’t optional or a “nice to do”—it’s vital to deliver on our strategy \nof having a diverse workforce and inclusive culture, which in turn will help us to ensure that our products and services empower all of our customers. \nTo facilitate this, we recently created a Microsoft Inclusive Hiring site to provide potential candidates with one place to find information on job opportunities. \nWe also promote this practice to other organizations and were proud to host 25 companies at our Ability Career Fair this year. \n\n Read about Microsoft’s unique hiring program, which opens more doors for people with autism", "Here are just a few examples of how nonprofit groups, innovative companies, \nL_30\ntext_31", "\n Microsoft Philanthropies\nensure that no one is excluded from the empowerment and opportunity that the technology revolution brings. \nWe’ve been hard at work at this mission for the past 30 years, and recently made a one billion dollar (U.S.) pledge to donate our cloud services to serve the \npublic good. Through our programs and partnerships, we invest in, convene, and \nempower people and organizations to advance a future that is for everyone. For more information, see \n Microsoft Philanthropies", "H2_56\nP_246\nP_247\nP_248", "H2_65\nP_279\nP_280", "P_322\nP_323\nP_324\nP_325", "Link_58\nLink_59\nLink_60\nLink_61\nLink_62", "Link_75\nLink_76\nLink_77\nLink_78\nLink_79", "We know that our decisions can affect our employees, customers, partners, shareholders, suppliers, and communities. So, we seek to ensure that their voices are considered as we make decisions. Microsoft gets input from millions of people each year, ranging from individual customers to policymakers and global human rights specialists. \nWe bring outside perspectives into the company and inform our business decisions through a variety of feedback channels. In addition to using formal channels, we proactively engage and talk to key stakeholders, advocacy groups, widely recognized experts, CSR rating agencies and CSR-focused investors, and many others. We also work to share our learnings and practices to generate industry dialogue, inform public debate, and advance greater progress. \n The downloadable paper \n Microsoft Stakeholder Engagement in the Governance of Corporate Social\n\n Responsibility", "UN \nGuiding Principles on Business and Human Rights \nUN Guiding \nPrinciples Reporting Framework", "Human rights are the inherent rights that belong \nto all people. At Microsoft, we endeavor to respect and champion human rights in the way we do business. And we work with some of the world’s leading human rights organizations to apply the power of technology to advance human rights. \nThe Microsoft Global Human Rights Statement \ndetails our commitment to respect and promote human rights. \n Read the full statement United Nations Global Compact", "Our Statement explains our intention to respect the rights defined in: \n\n Universal Declaration of Human Rights\n\n International Covenant on Civil and Political Rights \n\n International Covenant on Economic, Social and Cultural Rights ", "LI_12", "LBody_23\nLBody_24\nLBody_25\nLBody_26", "essential for internal conversations, identifying opportunities for improvements in our corporate responsibility, and for ongoing dialogue with groups directly \naffected by or interested in our operations. These include customers and users, \nUsing the \n United Nations Guiding Principles Reporting Framework\nPrivacy and data security \n Our approach Principles People Planet Resources", "their right to privacy. \n\n Learn more about our Privacy Principles \n\n Read our Privacy Statement \nOur commitment to privacy is based on six core principles: ", "\n Read our Law Enforcement Requests Reports \n\n Read our National Security Requests Reports \n\n Planet Resources_1\nWe are working to reform government surveillance practices. ", "\n Review our Corporate Governance documents \n\n Learn more about Microsoft in our Corporate Governance FAQs \n\n Read our Corporate Governance Fact Sheet \n\n Microsoft 2016 Corporate Social Responsibility_6", "LBody_58\nLBody_59", "LI_29", "LBody_61\nLBody_62\nLBody_63\nLBody_64", "L_17\ntext_18", "LI_37", "LBody_78\nLBody_79\nLBody_80\nLBody_81", "\n New York Times: From Microsoft, A Novel Way to Mandate Sick Leave\nRead about the organizations that the DSC group partnered with in the last fiscal year. \n\n Download the Microsoft DSC Collaborations document\n\n Microsoft 2016 Corporate Social Responsibility_13", "regarding the conflict-minerals issue. \nFind more detailed results of our conflict minerals due diligence process and findings. \n\n Download our latest Conflict Minerals Report\n\n Microsoft 2016 Corporate Social Responsibility_16", "LI_39", "LBody_85\nLBody_86\nLBody_87\nLBody_88", "covenants and declarations: \n\n Universal Declaration of Human Rights\n\n International Covenant on Civil and Political Rights _0\n\n International Covenant on Economic, Social, and Cultural Rights", "Indicator \nFY14 \nFY15 \nFY16 ", "Employee response rate Employee who feel proud to work at Microsoft Employees who feel they are treated with dignity and respoect by their manager Employee who would recommend Microsoft as a great place to work \n87% 90% 93% 86% \n84% 90% 92% 84% \n85% 92% 93% 87% ", "LI_49", "LBody_103\nLBody_104\nLBody_105\nLBody_106", "The Microsoft Accessibility Standards are a company-wide policy that drives consideration for accessibility into every stage of production, including: \nWindows, Office, Microsoft Edge, Xbox, and our other products and services include accessibility features and controls such as the Ease of Access Center in Windows or the Accessibility Checker in Office. \nAccessibility and inclusivity are part of our design process—from the very beginning. Our approach to inclusive Design enables our product managers, engineers, and designers to partner with individuals who have a range of abilities across visual, hearing, speech, mobility and cognitive spectrum, and we share our learn\nOur \n Inclusive Design", "LI_50", "LBody_107\nLBody_108", "L_31\ntext_32", "H3_2\nP_242\nP_243", "\n Climate Change Policy Statement Environmental Compliance Specifications for hardware Responsible Sourcing of Raw Materials\nSee how we have infused a focus on environmental sustainability across our business: \n\n Planet Resources_12\nOur operations ", "LI_53", "LBody_115\nLBody_116\nLBody_117\nLBody_118", "datacenters and manufacturing sites. We report on our water use, risk, and governance annually through CDP. \nMicrosoft uses outside ambient air to cool most of its datacenters for the majority of the year, and during hot summer months we inject water into the airstream as \nsupplemental cooling to take advantage of evaporation. Compared to conventional chiller solutions, the air cooling techniques we employ at our datacenters result in 20-30 percent lower energy consumption and 90 percent lower water consumption. We also recently completed a \n research project\nBeyond datacenters, Microsoft continues to invest in water-saving fixtures in our office buildings and smart landscape irrigation practices that conserve water. In India, we capture rainwater for irrigation, and on our Hyderabad campus, we treat sewage for use in landscaping, resulting in zero sewer discharge. Our Paris office also uses captured rainwater for irrigation and flush fixtures. ", "H2_66\nP_282\nP_283\nP_284", "H2_67\nP_286", "LI_60", "LBody_131\nLBody_132", "H2_76\nP_318\nP_319", "The Global Reporting Initiative (GRI) provides the leading framework that corporations use to guide their reporting on Corporate Social Responsibility efforts. It is based on input from a wide range of civil society organizations, \nAs of October 2016, the content throughout our Microsoft Corporate Social Responsibility web site contains Stan\ndard Disclosures from the GRI’s G4 Sustainability Reporting Guidelines for FY16. We provide the GRI Content Index below to allow our stakeholders to readily find the disclosures throughout our reporting site content. \nUN SDGs \n Our approach Principles People Planet Resources", "We work to earn the consistent trust and con\nfidence of the public, our customers, partners, \nemployees and shareholders. ", "Link_3\ntext", "Link_5\nLink_6\nLink_7", "Microsoft is committed to transparency for \ntwo reasons: To help our users make informed \nchoices about how they use our products and services, and to help our stakeholders evawluate how we are meeting our commitments to corporate social responsibility (CSR). ", "H2_5\nP_22\nP_23", "Our CSR site is designed to be a living, reporting medium that seeks to provide both comparable year-over-year data and access to important developments in our policies and practices throughout the year. Unless otherwise stated, informa\ntion across this site covers all of Microsoft’s global operations during our fiscal year 2016 (July 1, 2015 to June 30, 2016). This reporting site replaces the previous \nOur focus is to provide updates throughout the year to ensure that you, our stakeholders, have access to the most recent information available. We will update the site content on an ongoing basis with any breaking news or content; yet, some specific, significant content refreshes will happen at specific times throughout the year. The current plans are outlined below, but are subject to change ", "H3_0\nP_31\nP_32", "\n Discover more about our commitment to privacy and data security \n\n Microsoft 2016 Corporate Social Responsibility_3\n\n Planet Resources_0", "Sect_18\nLI_15", "We offer our users meaningful privacy choices, and we responsibly manage and \nIn 2016 we updated our company-wide Privacy Principles and the Microsoft Privacy Statement to communicate how seriously we approach matters of privacy \nat Microsoft and the effort we make to protect our customers’ personal data and ", "LI_18", "LBody_34\nLBody_35\nLBody_36", "LBody_37\nLBody_38\nLBody_39", "LI_21", "LBody_47\nLBody_48\nLBody_49", "LBody_55\nLBody_56\nLBody_57", "Link_37\ntext_15", "and the public. Microsoft and our employees participate in the United States political process in a variety of ways, including: \n• Joining corporate government affairs programs designed to educate and influence elected officials on key public policy issues related to the company’s \nbusiness. ", "Action Committee (MSPAC). \n• Helping to advance our business objectives through memberships in trade \nassociations. ", "campaigns MSPAC will support. \nMSPAC Committee Members \n\n Microsoft 2016 Corporate Social Responsibility_7", "US Federal \nUS State \n\n Microsoft 2016 Corporate Social Responsibility_8", "LI_33", "LBody_67\nLBody_68\nLBody_69", "LI_34", "LBody_70\nLBody_71\nLBody_72", "LI_35", "LBody_73\nLBody_74\nLBody_75", "ences and best practices. Explore examples in the sections below. \n\n Planet Resources_6\nChemical Management Program ", "Carbon emissions reporting _0\n17 52 153 \nCDP 2013 CDP 2014 CDP 2015 ", "LI_38", "LBody_82\nLBody_83\nLBody_84", "H3_1\nP_177\nP_178", "Our leadership is focused on bringing out the best in people, so that everyone brings their “A” \ngame and finds deep meaning in their work. \n\n Our approach Principles People_1", "LI_40", "LBody_89\nLBody_90\nLBody_91", "Sect_59\nLI_43", "by our Board of Directors. \n\n Planet Resources_8\nWorkforce diversity ", "H2_44\nP_206\nP_207", "LI_48", "LBody_100\nLBody_101\nLBody_102", "\n Web Content Accessibility Guidelines (WCAG 2.0)\n\n US Section 508 of the Rehabilitation Act \n\n Planet Resources_10", "H2_48\nP_218\nP_219", "H2_49\nP_221\nP_222", "LI_51", "LBody_109\nLBody_110\nLBody_111", "LI_52", "LBody_112\nLBody_113\nLBody_114", "energy consumption, and carbon offset purchases. \n\n Download the Microsoft 2016 Environmental Data Factsheet\n\n Microsoft 2016 Corporate Social Responsibility_20", "Microsoft is committed to remaining carbon \nneutral and to increasing our energy efficiency \nand use of renewable energy. ", "Sect_86\nLI_55", "H2_62\nP_265\nP_266", "Microsoft’s latest wind deal marks progress towards our goal and unlocks new innovations. \n\n As datacenters grow, Microsoft invests in more clean energy to power them \n\n Microsoft 2016 Corporate Social Responsibility_22", "Learn more about Microsoft’s environmental efforts beyond what this report provides. \n\n Explore our Environmental Sustainability site \n\n Planet Resources_13", "energy consumption, and carbon offset purchases. _1\n\n Download the Microsoft 2016 Environmental Data Factsheet_0\n\n Microsoft 2016 Corporate Social Responsibility_23", "life cycle by \n recycling them\nLearn more about Microsoft’s environmental efforts beyond what this report provides. _0\n\n Explore our Environmental Sustainability site", "Link_54\ntext_44", "Link_56\ntext_46", "energy consumption, and carbon offset purchases. _2\n\n Download the Microsoft 2016 Environmental Data Factsheet_1\n\n Microsoft 2016 Corporate Social Responsibility_24", "H3_3\nP_308\nP_309", "\n Resources\nResponsibile sourcing \n\n Conflict Minerals Report", "Microsoft CSR archived reports \nCorporate contributions \nAdvocacy and Trade Memberships ", "Link_80\nLink_81\nLink_82", "Microsoft State Candidate \nMSPAC Federal Candidate \nMSPAC Non-Candidate Committee ", "Contributions \nContributions _0\nContributions _1", "Link_102\nLink_103\nLink_104", "Link_105\nLink_106\nLink_107", "Link\nLink_0", "5 \nLink_1", "7 \nLink_2", "At Microsoft, our mission is to empower every person and every organization on the planet to achieve more. We also care deeply about how we achieve that mission and our lasting impact on the world and the communities where we operate. \n\n Microsoft 2016 Corporate Social Responsibility_0", "H2_0\nP_10", "United Nations Global Compact \nCommunication on Progress ", "20 \nLink_17", "24 \nLink_18", "33 \nLink_20", "37 \nLink_21", "39 \nLink_22", "42 \nLink_24", "44 \nLink_25", "47 \nLink_26", "48 \nLink_27", "\n Download the PDF version: A Cloud for Global Good\n\n Microsoft 2016 Corporate Social Responsibility_1", "LI_1", "LBody_13\nLBody_14", "Sect_8\nLI_3", "Human Rights \nEnvironment ", "\n Convention on the Rights of the Child \n\n Convention on the Rights of Persons with Disabilities ", "rights \n• Review and approval by Microsoft’s President and Chief Legal Officer ", "reinforced through annual, corporate-wide, online training. \n\n Microsoft 2016 Corporate Social Responsibility_2", "LI_4", "LBody_17\nLBody_18", "tivity services for a mobile-first, cloud-first world. \nAs such, Microsoft is investing in three integrated ambitions: ", "LI_13\nLI_14", "• The Business and Corporate Responsibility Team (BCR) houses our policy \nefforts towards meeting our accessibility commitments and privacy. ", "LI_16", "LBody_30\nLBody_31", "H5_3\nP_65", "LI_17", "LBody_32\nLBody_33", "\n must update our outdated privacy laws \n\n Microsoft 2016 Corporate Social Responsibility_5", "productivity and business processes, build the intelligent cloud platform, and create more personal computing. \nWe apply our rigorous code of conduct to everything we do. ", "standards of conduct \nAll Microsoft employees must complete annual training on our Standards of ", "\n Planet Resources_2\nBusiness conduct and compliance program ", "LBody_51\nLBody_52", "LI_24\nLI_25", "allowed by the laws. \nAnti-corruption _0", "multiple languages. \nWe engage only with legitimate businesses. ", "www.micro\nsoftintegrity.com", "Microsoft is recognized as a leader in accountability and transparency of our engagement in the public policy process. \n\n Our approach Principles People_0", "cross-border data flows, and cybercrime prevention. \n\n Planet Resources_3", "Stephanie Peters \nDirector of Government Affairs ", "Anne Gavin \nDirector of Government Affairs _0", "Matt Gelman \nManaging Director of Government Affairs ", "Ed Ingle Managing \nDirector of Government Affairs _1", "Brian Burke \nDirector of Government Affairs _2", "Mike Egan \nDirector of Government Affairs _3", "John Sampson \nDirector of Government Affairs _4", "Andrew Wise \nDirector of Government Affairs _5", "Revenue Code section 501(c)(4), as defined by applicable laws. \nTo uphold our commitment to the transparency of our political spending and ", "information is publicly disclosed and updated annually. \n\n Microsoft 2016 Corporate Social Responsibility_9", "Sect_47\nLI_31", "\n Planet Resources_4\nMicrosoft production supplier locations ", "\n Takes Sustainability to the Supply Chain\n\n Microsoft 2016 Corporate Social Responsibility_11", "LI_36", "LBody_76\nLBody_77", "Microsoft is dedicated to achieving extended, responsible sourcing strategies \nby building capabilities in and partnering with NGOs, the electronics industry ", "effective management and evaluation of chemical usage. \nEnvironmental, health, and safety (EHS) capability building ", "Safety Culture Program \nThe Safety Culture project requires suppliers to conduct a self-assessment of ", "and transparency. \n\n Microsoft 2016 Corporate Social Responsibility_14", "\n Household Emissions Calculator Assumptions and References \n\n Microsoft 2016 Corporate Social Responsibility_15", "NGOs and industry groups. \nConflict minerals ", "$1.9B $2B $2.3B $2.5B \nFY13 FY14 FY15 FY16 ", "We strive to exercise our growth mindset every day by being: \nCustomer-obsessed ", "\n Planet Resources_7\nWe are committed to respecting the human rights of all ", "individual contributors. \n\n Microsoft 2016 Corporate Social Responsibility Microsoft 2016 Corporate Social Responsibility", "LI_41\nLI_42", "Our commitment is based on: \nStrengthening our diversity and inclusion acumen. ", "For more on our strategy, visit our \n Global Diversity and Inclusion website\n\n Microsoft 2016 Corporate Social Responsibility_17", "Our Performance and Development program applies to Microsoft employees globally at every level of the organization to the extent permitted by local law. Stock-based compensation is a key component of our rewards programs at Microsoft, as it provides an ownership stake in the company’s success. Over 85 percent of Microsoft employees are eligible for an annual stock award. In addition, 90 percent of Microsoft’s employees are eligible for a cash bonus. Bonuses focus on an individual’s business impact over the past year. \nDue to local law, local conditions, and employee preferences, some benefits vary by location, but \n we offer a wide assortment of flexible benefits", "locations. \n\n Planet Resources_9", "for recordkeeping). \n\n Microsoft 2016 Corporate Social Responsibility_18", "LBody_97\nLBody_98", "There are no limits to what people can achieve when technology reflects the diversity of everyone who uses it. \n\n Our approach Principles People_2", "\n Explore our Inclusive Design website and resources \n\n Microsoft 2016 Corporate Social Responsibility_19", "Link_43\ntext_28", "Link_44\ntext_29", "Through community and philanthropy programs \nand our products, we seek to empower everyone in the world. ", "\n 42 Our environmental commitment 44 Climate and energy 47 Water and waste\n\n 48 Products and partnerships", "Microsoft is committed to publish information on our investments in initiatives to advance a more inclusive and equitable world. Our 2016 factsheet includes data \n\n Download the Microsoft 2016 Data Factsheet: Donations and Volunteerism", "We believe that technology can empower all of us to achieve a more sustainable future for our planet. \n\n Our approach Principles People_3", "\n Planet Resources_11\nLearn more about our datacenter energy usage ", "Our commitment to environmental sustainability touches every aspect of our company. \nWe seek to advance sustainability through our own business practices, the ", "packaging manufacturing supply chain management and operations. \nOur organization ", "Microsoft is committed to publish information on our greenhouse gas emissions, \nClimate and energy \n Our approach Principles People Planet Resources", "our impact. \nLearn more about our plans to go beyond carbon neutral. ", "\n local good (PDF)\n\n Microsoft 2016 Corporate Social Responsibility_21", "LBody_120\nLBody_121", "from wind, solar, and hydropower energy sources. Our goal is to pass the 50 percent milestone by the end of 2018, and to top 60 percent early in the next decade. \nIn addition to purchasing more clean energy, we are also committed to: ", "LI_56", "LBody_122\nLBody_123", "LI_57", "LBody_124\nLBody_125", "Energy efficiency \nData factsheet _0", "Our investment in new energy technologies drives new efficiencies in datacenters. \nMicrosoft is committed to publish information on our greenhouse gas emissions, _0", "at our datacenters result in 20-30 percent lower energy consumption and 90 per\nLink_45", "We seek to be responsible stewards of water resources, and to minimize the impact of our waste. \n\n Our approach Principles People_4", "Microsoft is committed to publish information on our greenhouse gas emissions, _1\nProducts and partnerships \n Our approach Principles People Planet Resources", "Through our products and our collaboration \nwith others, we seek to help the world tackle pressing environmental challenges. ", "Link_48\ntext_36", "Link_49\ntext_37", "Link_50\ntext_38", "Link_51\ntext_39", "Cloud services \nMicrosoft Cloud and Azure offer organizations energy-efficient alternatives to ", "end uses and renewable sources more effectively. \nMicrosoft CityNext ", "Link_52\ntext_41", "Link_53\ntext_42", " RE100\namicus brief", "Link_55\ntext_45", "White House Part\nnership for Resilience and Preparedness", "Link_57\ntext_47", "\n Communication on progress\n\n Microsoft 2016 Corporate Social Responsibility_25", "\n  Download Microsoft 2016 GRI G4 Content Index\n\n Microsoft 2016 Corporate Social Responsibility_26", "trademarks are property of their respective owners. Please consider the environment before printing this report. \n\n Microsoft 2016 Corporate Social Responsibility_27", "Microsoft 2016 Corporate Social Responsibility ", "Contents ", "\n Microsoft 2016 Corporate Social Responsibility", "Our approach ", "4 ", "Letter from our CEO ", "Governance of CSR ", "Our approach to reporting ", "\n Microsoft 2016 Corporate Social Responsibility", "the accessibility of our technologies. ", "solutions before they fall through the cracks. ", "to more than 100,000 nonprofit organizations around the world. ", "Sincerely, ", "Satya Nadella ", "Chief Executive Officer ", "Governance of CSR \n Our approach Principles People Planet Resources", "Overview ", "\n Visit the Regulatory and Public Policy Committee Charter", "H2_1", "Stakeholder engagement ", "Alignment with global standards and reporting frameworks ", " We endorsed the \n", " We were among the first companies to align our human rights work with the \n", " We are actively engaged in supporting the UN Sustainable Development Goals. ", " We base our CSR reporting on the Global Reporting Initiatives’ Sustainability Reporting Guidelines. ", "Microsoft works to align our CSR commitments and CSR reporting with relevant global standards: ", "P_14", "\n Microsoft 2016 Corporate Social Responsibility", "Our approach ", "Principles ", "Resources ", "4 ", "Letter from our CEO ", "Human rights ", "2016 Reports Hub ", "5 ", "Governance of CSR ", "Privacy and data security ", "GRI Index ", "7 ", "Our approach to reporting ", "Corporate governance and ethics ", "UN SDGs ", "Public policy engagement ", "Responsible sourcing ", "Link_19", "People ", "Empowering our employees ", "Accessibility ", "Empowering communities ", "Link_23", "Planet ", "Our environmental commitment ", "Climate and energy ", "Water and waste ", "Products and partnership ", "Governance of CSR ", "\n Our approach Principles People", "CSR materiality assessment ", "commitments to drive positive impact to our business and to society. ", " Access to technology and economic opportunity ", " Climate change and energy ", " Corporate governance ", " Data privacy and security ", " Device lifecycle impacts ", " Environmental/social applications of technology ", " Ethical business practices ", " Human capital ", " Human rights ", " Responsible sourcing and manufacturing ", "Top issues: ", "challenges for people with disabilities. ", " If we don’t acknowledge explicitly, at the outset, that this new era creates both opportunity and challenge, the truth is we’ll do less than we should to make the most of the promise that lies ahead. We need to ensure that we move technology forward without leaving people behind. ", " This requires that we accept a sense of shared responsibility. Those of us who ", "• Technology is creating new jobs, but automation can challenge and even replace some traditional jobs. There are new challenges to privacy rights. here are new questions about income inequality. There are new opportunities but also ", "LI_2", "LBody_15", " Our human rights commitments, and our commitments to privacy and data security work to ensure that our cloud is trusted.", "LBody_16", " Our commitments to environmental sustainability, responsible sourcing, and empowering our employees to ensure that our cloud is responsible.", "• To fulfill that responsibility, we need to ensure that the cloud is trusted, responsible and inclusive. Microsoft’s efforts here include:", "About our site ", "single PDF and print versions, which were published annually. ", "based on availability of data or business events. ", "Standards ", "information. ", "\n Microsoft 2016 Corporate Social Responsibility", "\n Microsoft 2016 Corporate Social Responsibility", "Principles ", "\n 10 Human rights 15 Privacy and data security 17 Corporate governance and ethics 20 Public policy engagement 24 Responsible sourcing", "\n Microsoft 2016 Corporate Social Responsibility", "Human rights \n Our approach Principles People Planet Resources", "Our approach to reporting ", "Our approach ", "Principles ", "People ", "Planet ", "Resources ", "UN Global Compact Index ", "Our commitment ", "human rights. The revisions were developed through: ", " An assessment process with the internal teams that are responsible for our salient and supplemental human rights issues ", " Discussions with external subject matter experts who are closely associated with Microsoft or the field of Information Communication Technology (ICT) and human ", "our business, and to meet our increased standards and responsibility to respect ", "Human rights ", "\n Our approach Principles People", "Our approach ", "Microsoft’s salient human rights issues are: ", "activities worldwide, led by our Microsoft Philanthropies group. ", "LBody_19", " Accessibility: Creating and delivering technology that is accessible and functional for people of all abilities. ", "LI_6", "Link_33", "Learn more about our commitment to accessibility  ", "LBody_20", " Online safety: Protecting the safety and security of vulnerable groups online. ", "LI_8", "Link_34", "Find resources and research about online safety  ", "LBody_21", " Freedom of expression and privacy: Respecting peoples’ right to freedom of expression and their right to freedom from arbitrary and unlawful interference with privacy online. ", "LI_10", "Link_35", "Learn about our work to advance freedom of expression  ", "LBody_22", " Privacy and data security: Incorporating privacy considerations into our design ", "Businesses are expected to determine their salient human rights, which are defined as the rights “at risk of the most severe negative impact through the company’s activities and business relationships.” Determining our salient human rights allows us to act on and report on the most critical human rights needs connected with our business. ", " Responsible sourcing: Upholding ethical business, employment, environmental, and worker safety practices in our global supply chains. ", " Corporate governance and ethics: Sharing ethical behavior and acting with integrity in everything we do. ", " Diversity and inclusion: Creating a global workforce and culture without discrimination. ", "Link_36", "Philanthropy", "We recognize that there are additional areas where we must support the needs of rights holders. We regard these as our supplemental human rights issues: ", "LBody_27", " Reinventing productivity and business processes ", "LBody_28", " Creating more personal computing ", "LBody_29", " Building the intelligent cloud platform that is trusted, responsible, and inclusive of everyone ", "Microsoft’s strategy for the future is to build best-in-class platforms and produc", "Human rights ", "\n Our approach Principles People", "Human rights governance ", "\n Planet Resources", "\n Microsoft 2016 Corporate Social Responsibility", " Shared responsibility: Everyone within our business, including our partners, has a responsibility to respect human rights. This responsibility is established in the UN Guiding Principles on Business and Human Rights, and is reflected in the Microsoft Global Human Rights Statement. ", " Focus on impact: Across our company, we have teams with dedicated responsibility to drive decisions that demonstrate respect for customers’ and end users’ ", "Microsoft’s internal governance on human rights issues seeks to ensure that our human rights commitments are met across our global and diverse business. We achieve that commitment through: ", "Shared responsibility to respect human rights ", "P_53", "\n Microsoft 2016 Corporate Social Responsibility", "Human rights \n Our approach Principles People Planet Resources", "Additional reporting ", "Regular and transparent disclosure on our efforts to respect human rights is ", "employees, suppliers, governments, civil society, investors and others. ", "Privacy principles Privacy in design and development ", "We recognize privacy as a fundamental human right. We support that right through our corporate operations and actions. ", "protect the customer data that we store. ", "H5_0", "Control ", "We put users in control of their privacy with easy-to-use tools and clear choices. ", "H5_1", "Transparency ", "We are transparent with users about data collection so that they can make informed decisions. ", "H5_2", "Security ", "We protect the data users entrust to us through strong security and encryption. ", "Strong legal protections ", "privacy as a fundamental human right. ", "We respect our customers’ local privacy laws and fight for the legal protection of ", "No content-based targeting ", "Benefits ", "When we do collect data from users, we use it to improve their experience. ", "company. ", "we demonstrate our commitment to customer security and privacy. ", "\n Microsoft 2016 Corporate Social Responsibility", " Making the commitment to not scan email services for the purposes of targeting online advertising. ", " Being one of the first companies to sign the Student Privacy Pledge. This pledge was developed by the Future of Privacy Forum and the Software amp; Information ", "We’ve also been among the first in our industry to adopt a number of privacy protections. These include: ", "We do not use customer email, chat, files, or other personal content to target ads. ", "Privacy and data security ", "\n Our approach Principles People", "Addressing government information requests ", "We do not provide any government with direct and unfettered access to our customers’ data, nor do we provide ‘back door’ access. ", "Our transparency practices help to protect your privacy. ", "This legal victory is important for three reasons. It ensures that: ", " People’s privacy rights are protected by the laws of their own countries. ", " The legal protections of the physical world apply in the digital domain. ", " Better solutions to address both privacy and law enforcement needs can be developed in the future. ", "by the U.S. government to use search warrants unilaterally to reach beyond U.S. borders. ", "ethics ", "Corporate governance ", "We work to build and maintain trust through a shared commitment to ethical behavior and to act with integrity in everything we do. ", "Corporate governance at Microsoft: ", "appropriately distributing rights and responsibilities among Board members, managers, and shareholders. ", "Our progressive corporate governance framework ", " Board and committee evaluations ", " Shareholder engagement ", " Risk oversight ", " Board composition, director selection and director compensation ", " Board refreshment and succession planning ", " Independent Board leadership ", " Board meetings and involvement of senior management ", " CEO performance evaluation ", " CEO and senior executive development and succession planning ", " Board committees ", "framework establishes the practices our Board follows with respect to: ", "Policies and guidelines ", " Provides a structure for management and the Board to set objectives and monitor performance. ", " Strengthens and safeguards our culture of business integrity and responsible business practices. ", " Encourages the efficient use of resources, and requires accountability for stewardship of those resources. ", "• Establishes and preserves management accountability to company owners by ", "Corporate governance and ethics ", "\n Our approach Principles People", "Ethics and standards of business conduct ", "indirectly owns more than 50 percent of the voting control). ", "\n Conduct ", "Across Microsoft, we: ", "compensation. ", "\n Microsoft 2016 Corporate Social Responsibility", "LI_22", "LBody_50", " Train our employees. ", " Identify, investigate, and remediate concerns, risks, and improper conduct. ", " Require partners and suppliers to adhere to the highest standards of ethical behavior and regulatory compliance. ", "LBody_53", " Promote a culture of ethics and integrity ", "LBody_54", " Perform regular internal audits. ", " Build, enhance, and monitor internal controls to identify and mitigate risks of unethical and non-compliant conduct. ", " Require multiple levels of approval for contracting and expenditures. ", " Maintain internal compliance scorecards that affect key leaders’ performance ", "of the size and complexity of our business and the seriousness with which we take meeting our obligations. ", "ethics ", "methods. These include the following: ", "languages). ", "Retaliation is prohibited (Safe to Report) ", "We have the highest possible standards for ethical conduct. ", "We expect our partners to comply with our ethical standards. ", "\n Microsoft 2016 Corporate Social Responsibility", " Submitting an online report through a publicly available website (\n", " Emailing the Office of Legal Compliance directly at buscond@microsoft.com. ", "LI_28", "LBody_60", " Calling, writing, or faxing the Office of Legal Compliance directly. ", "• Calling a toll-free telephone integrity hotline that is staffed 24 hours a day, 7 days a week by a third-party vendor (operators are available to receive calls in 49 ", "Public policy engagement ", "Our approach ", "\n CPA-Zicklin Index of Corporate Political Accountability and Disclosure", "Policy agenda ", "few. It outlines policies to ensure cloud computing is: ", "and address Artificial Intelligence. ", "\n Read our cloud policy roadmap ", "Responsible governance ", "ties. The committee receives regular, formal reports. ", "\n Microsoft 2016 Corporate Social Responsibility", "More about MSPAC ", "Transparency in public policy advocacy ", "$10M ", "$2M ", "Trade association membership contributions ", "Our commitment ", "We strive to ensure that our suppliers uphold high standards for responsible business practices and how they treat the people who work for them. ", "supplier contracts. ", " We advance our responsible sourcing commitments through: ", " Analysis of risks and opportunities ", " Assurance and accountability ", " Capacity building ", "LI_30", "LBody_65", " Creating shared value ", "Microsoft’s Device Supply Chain group (DSC) and indirect purchasing group oversee dedicated programs to ensure that our standards are met and to build partnerships with suppliers that advance social and environmental goals. For example: ", "LBody_66", " Since 2005, Microsoft’s Device and Supply Chain group has operated an indus", "ethics practices prescribed in our Supplier Code of Conduct. This code aligns with, and in certain cases exceeds, the Electronic Industry Citizenship Coalition’s (EICC’s) responsible supply chain standards. The Supplier Code of Conduct and other Social and Environmental related requirements are incorporated into our ", "Responsible sourcing ", "\n Our approach Principles People", "Risk Assessment ", "environmental opportunity and risk in our supply chain. ", " Their social and environmental risks ", " Our spend and influence with them ", " Their connection to our products and services ", "suppliers, considering but not limited to the following: ", "of supplier sustainability assessments to allow for better analysis of corrective actions and individual and cumulative results. ", "Responsible sourcing ", "\n Our approach Principles People", "Accountability ", " Contracts ", " Supplier Code of Conduct ", " SEA specifications ", "Step 1: Onboarding Requirements ", " Third-party auditors and Microsoft SEA assessors ", " EICC requirements plus Microsoft requirements ", " Scorecards ", "Step 2: Assessments, audits, and scorecards ", " Root cause identification ", " Corrective and preventive action ", "Step 3: Corrective Action and Validation ", " Safety and high risk management guidance ", " Enhanced living conditions checklist ", " Grievance hotline ", " Training, coaching, and best practice sharing ", "Step 4: Continuous Improvements ", "• Tier 1 suppliers: Manufacturing partners with whom Microsoft has a direct ", "products. ", "manner. Follow-up audits are conducted to ensure that corrective actions are implemented and closed. ", "and up-level our thinking. ", "provide employees with paid time off. ", "Responsible sourcing ", "\n Our approach Principles People", "Capacity building ", "programs. ", "with 37 suppliers. ", "Model Factory Scorecard ", "Carbon emissions reporting ", "Code of Conduct and ethics training ", "Microsoft’s SEA team has designed 42 EHS training courses and provided onsite consultation to help build suppliers’ capabilities. ", "In FY16, 330 EHS professionals from Microsoft suppliers attended our SEA in-house training, representing factories with more than 30,000 workers. ", "We also continued to emphasize the need for competent and experienced EHS professionals in the factory to define and implement the programs necessary to build a culture of health and safety. To date, we have worked with 37 suppliers on gaining certification of safety culture programs. ", "Factory worker health and safety is a top priority for Microsoft. Over the past four years, we have significantly expanded our engagements to help directly contracted hardware suppliers create and maintain safe working environments: ", "Sourcing of raw materials ", "our devices and packaging, unbounded by materials or geographic origin. ", "align industry-wide and cross-industry efforts, and exchange best practices. ", "2007 to address conflict minerals. ", "\n Microsoft 2016 Corporate Social Responsibility", "Creating shared value ", "Certificate. ", "Here are some examples of how we’re addressing this challenge: ", "sourcing. ", "People ", "\n 33 Empowering our employees 37 Accessibility 39 Empowering communities", "\n Microsoft 2016 Corporate Social Responsibility", "The corporate Customer Service and Support group is integrating impact sourcing with their strategic, multinational contact center suppliers, which is impacting thousands of disadvantaged workers. ", "Our Real Estate and Facility organization works with neurologically and physically disadvantaged workers in their supported employability program. ", "Some of our software groups are engaging neurologically and physically disadvantaged workers to perform application testing services. ", "Finally, we continue to build more inclusive and productive supply chains beyond Microsoft by participating in over 20 Rockefeller sponsored business cases, ", "This practice is called impact sourcing. In FY16 we continued our collaboration with the Rockefeller Foundation to research and promote best practices in impact sourcing” with suppliers who proactively seek to provide work and training opportunities to high-potential but disadvantaged individuals. ", "Empowering our employees ", "Our approach ", "Everyone can grow and develop. ", "Potential is nurtured, not predetermined. ", "Anyone can change their mindset. ", "Diverse and inclusive ", "One Microsoft ", "respect of employment and occupation. ", "LBody_92", "Communicate respectfully with each other. ", "LBody_93", "Protect the safety and health of our employees. ", "LBody_94", "Provide for diversity and equal employment opportunity at all levels of our organization. ", "In addition, our Microsoft Standards of Business Conduct incorporates the following commitments to: ", "Our approach ", "Principles ", "People ", "Planet ", "Resources ", "Employee feedback counts We ask for—and act on—employee feedback in multiple ways and through multiple listening systems. This includes an annual poll of all our employees around the world by a third-party vendor to protect employee anonymity. In FY15, nearly 85 percent of our more than 117,000 employees responded. The poll asks employees to share feedback about their experience working at Microsoft, Microsoft’s Senior Leadership Team, and our culture. Individual managers use the poll results to further improve on areas of strength and address opportunities for improvement. We supplement the poll with additional quarterly “pulse” polls covering additional issues. ", "Our employees feel proud and respected ", "Empowering our employees ", "\n Our approach Principles People", "Compensation and benefits ", "Workforce diversity and inclusion ", "Increasing senior leader accountability for their diversity plans. ", "EEO-1 data we report each year to the US government. ", "Empowering our employees ", "\n Our approach Principles People", "Employee wellness and occupational health and safety ", "wellness, including: ", "for child/elder care. ", "options. ", "operations, and our manufacturing facilities. ", "LBody_95", "Access for Microsoft employees and their dependents to weight management, tobacco cessation, and chronic disease management programs. ", "LI_45", "LBody_96", "An onsite health clinic at our Redmond, Washington headquarters campus, ", "Fitness benefits that fund gym memberships or fitness-related equipment and activities and onsite recreational and fitness opportunities. ", "Free onsite “Know Your Numbers” health screening events, providing employees and their adult dependents with screening for risks of heart disease, diabetes, high cholesterol, and high blood pressure as well as onsite mammography screenings. ", "LI_47", "LBody_99", "Healthy dining options, including a new Real Easy Wellness labeling system used in all Microsoft cafes with color coding to flag healthier and less healthy ", "• The Microsoft CARES employee assistance program, offering free access to services including personal and family counseling, stress management, and referrals ", "Accessibility ", "Our commitment ", "journey: ", "\n Planet Resources", " Transparency: We are open with our plans to ensure our products are accessible. ", " Accountability: We will, going forward, prioritize inclusive design and accessibility in the development of all products and services upstream in the process. ", " Inclusivity: We want everyone to be empowered—not only through our products, services, and technology, but within our culture at Microsoft. ", "We’ve established three guiding principles to lead the way on our accessibility ", "Accessible products and inclusive design ", " Design ", " Development ", " Evaluation ", " Release ", "ings broadly so that other companies can benefit from them as well. ", "Accessibility ", "\n Our approach Principles People", "Providing resources ", "Microsoft Disability Answer Desk ", "We also work to raise the awareness of accessibility issues in the technology ", "and technologies for developing accessible applications and web content. ", "Inclusive hiring ", "\n Find out more about our inclusive hiring for people with disabilities ", "\n Learn how you can be who you are, every day, at Microsoft ", "Empowering others ", "Specific examples include: ", "\n Microsoft 2016 Corporate Social Responsibility", "Learning Tools for OneNote", " The introduction of \n", "Cities Unlocked", " The \n", "who use eye tracking technology to communicate more easily, as well as utilizing machine learning to show how computer vision can empower a person to experience their physical surroundings in new ways. ", "Products and services ", " Access to technology through the products and services we provide. ", " Strategic programs to reach specific communities. ", " Philanthropic contributions. ", "These assets include: ", "Lagos Solar Project ", "Partners in Health ", "Financial access through the cloud ", "Communicating across languages ", "and MSN services. ", "Android, and Windows are also available. ", "\n Microsoft 2016 Corporate Social Responsibility", "Empowering communities ", "\n Our approach Principles People", "Programs ", " Helping people of this continent develop world-class skills ", " Providing access to technology ", " Supporting innovation ", "\n Microsoft’s 4Afrika Initiative", "\n Learn about our grant recipients ", "\n Planet Resources", "H2_53", "Philanthropy ", "Data factsheet ", "covering the past three fiscal years. ", "\n Microsoft 2016 Corporate Social Responsibility", "Planet ", "\n Microsoft 2016 Corporate Social Responsibility", "Our environmental commitment ", "Guiding principles and policies ", "supply chain. ", "\n Microsoft 2016 Corporate Social Responsibility", "Our environmental commitment ", "\n Our approach Principles People", "Environmental management ", "Our goals ", "Data factsheet ", "Carbon neutrality ", " Internal energy efficiency investments. ", " Purchases of renewable energy equal to 100 percent of our consumption. ", " Externally certified carbon offset projects. ", " Support for e-waste recycling and renewable energy innovation. ", "Since the inception of the carbon fee, Microsoft has: ", "carbon offset community projects. ", "LI_54", "LBody_119", " Purchased more than 14 million megawatt-hours (MWh) of green power. ", " Reduced company-wide emissions by more than 9 million metric tons of carbon-dioxide equivalent (mtCO2e). ", " Supported the lives of more than 7 million people in emerging nations through ", "Since July 1, 2012, Microsoft’s global operations have been carbon neutral. Our commitment to carbon neutrality spans operations in more than 100 countries. To deliver on our commitment, we created a program to ensure company-wide accountability for carbon, charging an internal carbon fee to our business groups for the cost of reducing the carbon emissions associated with their energy use and air travel. Funds collected from the business groups help support: ", "Climate and energy ", "\n Our approach Principles People", "Carbon footprint ", "\n CDP website", "on its Climate A List for climate performance leadership for 2013 – 2016. ", "Renewable energy ", "percent carbon neutral in our operations and business air travel. ", "erate the availability of different types of energy and drive efficiency. ", "\n Planet Resources", "others to claim. ", "purchasing 100 percent renewable electricity. ", "has operated since FY15. ", "\n Microsoft 2016 Corporate Social Responsibility", "Support public policies that help enable new renewable energy sources. We will continue to support public policies that accelerate the availability of renewable and clean energy in markets where we operate. ", "Site our facilities with access to renewable energy. Availability of renewable energy is among the criteria that we consider in where to locate our datacenters. ", "• Invest in new energy technologies. We will continue to invest in new energy technology, such as our biogas and fuel cell work, that has the potential to accel", " In December 2015, we supported the global negotiations which led to the Paris climate agreement, through our participation in the American Business Act on Climate initiative and our long-term climate pledge. ", " We have purchased electricity from projects that reduce our datacenters’ reliance on fossil fuels, including the 175-MW Pilot Hill Wind Project in Illinois, which came online in FY16, and the 110-MW Keechi Wind Farm project in Texas, which ", "ranked us as the second-largest user of green power in the United States. ", "energy consumption, and carbon offset purchases. _0", "Compared to conventional chiller solutions, the air cooling techniques we employ ", "Download the Microsoft 2016 Environmental Data Factsheet ", "cent lower water consumption. Our broader energy efficiency strategy is focused ", "on changes that we can make in the future that will have even greater gains: ", "• We are experimenting with ways to integrate fuel cells into our datacenters to ", "improve efficiencies and reduce transmission losses. ", "• We are working with industry partners and the U.S. Department of Energy to ", "pilot and commercialize new energy technologies that we hope will be foun", "dational to the next generation of efficient datacenter designs. This includes ", "our multi-year partnership with the University of Texas at San Antonio and the ", "school’s Texas Sustainable Energy Research Institute to identify economically via", "ble technologies that reduce the environmental footprint of datacenters. ", "• We contributed new, innovative hardware specifications to the Open Compute ", "Project, which is focused on engineering the most efficient hardware for cloud ", "and high-scale computing via open collaboration. ", "Energy efficiency in buildings: We invest to reduce carbon and save energy. ", "Through our carbon program, we have invested over $3.1 million in our real ", "estate facility projects that reduced our associated carbon emissions by over ", "18,000 metric tons and saved over $3.6 million in annual energy costs – paying ", "for themselves in under a year. ", "With one of our partners, Iconics, Microsoft leveraged our corporate campus to ", "help create an analytical software solution that prioritizes maintenance and re", "pairs our 125 Puget Sound buildings based on energy and cost savings potential. ", "Generating energy savings of 10–11 percent, the Puget Sound system paid for ", "itself in less than two years, and we’ve now also implemented the solution on our ", "Silicon Valley and Las Colinas campuses, with additional deployments on other ", "campuses underway. ", "We are sharing our results with government and industry leaders from around ", "the globe and making similar solutions available through partners to our custom", "Link_46", "ers (such as through Microsoft CityNext offerings). ", "Learn more about our plans to design the datacenters of the future. ", "Link_47", "Microsoft Green Blog: Energy Efficiency and Designing the Datacenters of the Future ", "Water and waste ", "Water use ", "Microsoft is focused on responsible water stewardship in our office buildings, ", "Waste management ", "our menu to minimize food waste. ", "of waste that we generate in the first place. ", "the program expanded to cover 70 countries. ", "Data factsheet ", "Sustainable devices ", "See how we: ", "design", " Incorporate sustainability into product \n", "materials selection", " Incorporate sustainability into \n", "products", " Promote energy efficiency in our \n", "packaging", " Reduce impacts from \n", "LBody_130", " Seek to keep products and their components out of landfills at the end of their ", "At Microsoft, we think every product should be made with the environment in mind, from initial design to use to end of life. ", "Enabling digital transformation through our products and services ", "of energy costs per year. ", "efficiency of the electric system. ", "cleaner and more efficient transport choices. ", "\n Microsoft 2016 Corporate Social Responsibility", "Products and partnerships ", "\n Our approach Principles People", "Partnerships ", "communities we serve. ", "strategies for mitigating climate change. ", "We have also supported industry and multi-stakeholder initiatives to address climate policy. Among these: ", "innovation. ", "\n Planet Resources", "and earth sciences. ", "Advanced Energy Economy", " Microsoft sits on the board of \n", "Climate Declaration", " We are a signatory to the \n", "to accelerate the development of renewable energy, to develop and deploy new clean energy technologies, and to drive further improvements in energy efficiency. ", " We participate in the\n", "100 Resilient Cities", " We work with Rockefeller’s \n", " In September 2016, we became a founding member of the \n", "Montreal Protocol", " In September 2016, we joined over 500 countries, cities, and companies to call for an amendment to the \n", "• We serve on the board of the Global e-Sustainability Initiative (GeSI), a collaborative effort between leading IT companies and the United Nations Environment Programme and International Telecommunication Union. ", "Data factsheet ", "Resources ", "\n 51 2016 Reports Hub 53 GRI Index 54 UN SDGs", "\n Microsoft 2016 Corporate Social Responsibility", "\n Our approach Principles People Planet", "Microsoft is committed to publish information on our greenhouse gas emissions, ", "H2_73", "Download complete reports ", "Microsoft provides a number of disclosures to help stakeholders evaluate how we are meeting our commitments to corporate social responsibility. Download any of our full reports. ", "2016 Reports Hub ", "2016 Reports Hub ", "\n Microsoft 2016 Corporate Social Responsibility", "Global Reporting Initiative Index ", "labor groups, businesses, academics, and other experts. ", "Microsoft and the UN Sustainable Development Goals ", "\n Microsoft 2016 Corporate Social Responsibility", "notice. You bear the risk of using it. ", "You may copy and use this document for your internal reference process. © 2017 Microsoft. All rights reserved. ", "Our approach ", "Principles ", "People ", "Planet ", "Resources ", "2015 2011 ", "2006 ", "H2-2016 H1-2014 ", "2011 ", "2016 2013 ", "2010 ", "2014 2010 ", "2005 ", "H1-2016 H2-2013 ", "2010 ", "2015 2012 ", "2009 ", "2013 2009 ", "2004 ", "H2-2015 H1-2013 ", "2009 ", "2014 2011 ", "2012 2007-2008 ", "2003 ", "H1-2015 H2-2012 ", "Link_83", "H2-2014 H1-2012 ", "H2-2016 H1-2014 ", "2011 ", "H2-2016 H1-2014 ", "2011 ", "H2-2016 H1-2014 ", "2011 ", "H1-2016 H2-2013 ", "2010 ", "H1-2016 H2-2013 ", "2010 ", "H1-2016 H2-2013 ", "2010 ", "H2-2015 H1-2013 ", "2009 ", "H2-2015 H1-2013 ", "2009 ", "H2-2015 H1-2013 ", "2009 ", "H1-2015 H2-2012 ", "H1-2015 H2-2012 ", "H1-2015 H2-2012 ", "H2-2014 H1-2012 ", "H2-2014 H1-2012 ", "H2-2014 H1-2012 ", "GRI Index \n Our approach Principles People Planet Resources" ]

[ "P_15\nSect_10", "with a focus on systems analysis. To help pay his tuition and other expenses, Cristiano worked as a bus fare collector, but his job gave him no opportunity to use his new skills. \n“I fell in love with IT and became deeply interested in development and programming issues. On the other hand, the course was too basic and I did not have the chance of putting things into practice,” Cristiano says. That is when he decided to quit his job and devote more time to his studies. “Even if I had to earn less, I wanted to have the chance of growing in professional terms.” \nIn August 2004, Cristiano heard about the XML Technology Center in Petrpolis, where he was living. The center is part of a nationwide program in Brazil, supported by Microsoft, which trains students and professionals on XML technology, an industry standard that enables communication among diverse applications and operating systems. \nCristiano was granted one of the center’s competitive and coveted scholarships. Since then, he has earned three \ndifferent Microsoft certifications, which are internationally \nrecognized credentials based on rigorous exams that certify a candidate’s technical expertise and can lead \nto outstanding employment opportunities. On his first certification test, Cristiano had the highest score possible. \nFounded in 2001, the XML Technology Center in Petrpolis is one of 17 centers Microsoft supports in Brazil, 12 of which are focused on XML technology. These centers address the needs of the local academic community and the regional market by offering scholarships and research opportunities for teachers and students, along with \ncourses, certification and technical guidance for software \ndevelopers, and specialized professional services and concept tests for companies that want to test their solutions. \nIn fiscal year 2005, 7,444 people took part in courses at the \nXML Technology Centers, and 87 students participated in the scholarship program. During that period, 63 projects were carried out, 42 percent of which were for public utilities. In addition, 122 local software development companies used the services provided by the XML labs to improve their knowledge and to validate their cutting-edge technologies. \nThe XML Technology Centers also help students enter the labor market: approximately 70 percent of all \nstudents who developed projects in the labs in fiscal \nyear 2005 found jobs promptly after completing the program. Cristiano expects to be hired soon. \n“Meanwhile,I will take advantage of the opportunities offered by the XML Technology Center and try to learn more and more, with a view to being ready for the labor market,” he says. \nThe Philippines \nIn 2005, the Philippine Software Industry Association and the Commission on Information and Communications Technology called on Microsoft to help develop a plan to improve the Philippines economy by strengthening the nation’s software industry. Dubbed “Fly High: Philippine Software 2010,” the \nplan identifies five priority areas for development that will \nhelp to expand and accelerate the growth of the software industry in the Philippines by the end of the decade: Grow domestic demand for software. Develop skilled software professionals. Increase software exports. Reinforce intellectual property compliance. Build infrastructure for industry growth. Microsoft will continue to work with its government, industry, and NGO partners in the Philippines to carry out many of the action steps outlined in the plan, including a variety of business development, skills training, and workforce development initiatives. ", "In 2005, we’re celebrating Microsoft’s 30th anniversary. Over the past three decades, our software products have \nenabled hundreds of millions of people to fulfill their \npersonal and professional goals. We’re proud of everything we have accomplished, but we haven’t done it alone. \nFrom the beginning, we have built our business through partnerships with approximately 650,000 companies, and we’re expanding our global citizenship efforts through the same kind of proactive collaboration with other industry leaders, governments, community-based organizations, and nongovernmental organizations (NGOs). None of our achievements would be possible without the extraordinary efforts of our employees. Not only do they work hard every day to make Microsoft a successful business, they also contribute their time, expertise, and personal resources to many of our citizenship efforts. \nIn the course of our work, we meet often with government, NGO, and community leaders worldwide, and during our discussions one theme always emerges: their passion and drive to create opportunities for their citizens, for local businesses and industries, and for the communities they serve. At Microsoft, we share this passion for creating opportunities, and it is our mission to enable people and businesses throughout the world to realize their full potential. \nThat’s why we have made a commitment to provide technology access and skills training to a quarter billion people by 2010 —people previously underserved by technology. It’s why we collaborate with law enforcement agencies and \nofficials worldwide to keep children safe online, and why we \nwork hard to make our software more secure from viruses, worms, and other malicious attacks. And it’s why we have created a culture of accountability at Microsoft to help ensure that all of our business relationships and transactions exemplify the respect and integrity we have built into our core values. \nBut no matter how far-reaching our overall goals may be, they always come down to empowering one person at a time. \nWhether we’re working with community-based organizations and NGOs in China to increase employment opportunities for unskilled migrant workers, partnering with law enforcement \nofficials in Canada to develop a customized system that helps police fight computer-facilitated crimes against children, \ncollaborating in Latin America with the Organization of \nAmerican States and its affiliate The Trust for the Americas \nto help people with disabilities gain the skills they need to \nstart their own businesses and find employment, or working \nwith leading companies and community organizations in Europe on a grants program to help small and medium-sized enterprises improve productivity through technology, our commitment is the same: to make it possible for people to use technology to improve their lives. \nWe are working every day to ensure Microsoft’s continuing evolution as a global corporate citizen, and to create new opportunities for people everywhere. \nSincerely, ", "H6_20\nL\nP_34", "As governments everywhere strive to harness the opportunities and meet the social and economic challenges \nof the twenty-first-century knowledge economy, they \nare focused on promoting job growth and skills training, encouraging the development of local industry, and enhancing their global competitiveness. Governments understand that devising strategies to successfully address these issues today will provide a solid foundation for future growth and prosperity. Because computers and technology are the engines that drive the knowledge economy, many of these economic development strategies center on increasing digital literacy and the use of technology. \nMeeting these objectives is a long-term effort that often cannot be accomplished by governments alone. One hallmark of the digital age has been the increase in public-private partnerships to address issues such as skills training, access to technology, and funding for new enterprises. This new spirit of collaboration demonstrates that the private sector, as well as governments, has an important role to play in creating opportunity for local communities worldwide. \nCreating Opportunity for Businesses \nMicrosoft is a very successful company, but our accomplishments depend on the success of thousands of other technology companies around the world. At the heart of our business model is our reliance on other companies that build hardware and software, provide solutions, and offer services based on the Windows platform. \nThis global interdependent network of 650,000 Microsoft partners creates huge opportunities for local communities. It creates jobs, generates tax revenue for governments, offers skills and workforce development programs, \nand makes significant investments in innovative new \ntechnologies. Recent research conducted by IDC, a leading provider of marketing intelligence for the information and communications technology industry, shows that for every $1 of revenue Microsoft earns, \nlocal software, hardware, and services firms earn \nbetween $6 and $18 of downstream revenue. \nCreating Opportunity for Individuals \nCreating economic opportunities for nations, communities, and businesses begins by opening doors of opportunity for individuals. Microsoft is deeply involved in promoting digital inclusion around the world, working in partnership with governments, industry leaders, and community organizations to offer skills training ranging from basic computer skills to \nthe most advanced professional training and certifications. \nBy 2010, through innovative technologies and partnerships, Microsoft plans to provide ICT skills training to a quarter billion people who were previously underserved by technology. \nThrough our flagship digital inclusion programs, Partners \nin Learning and Unlimited Potential, we provide technology access and training to all types of learners, no matter where they happen to be on the continuum of ICT skills and knowledge. We offer skills training for schoolchildren, for teachers who need to learn how to incorporate technology as part of their classroom instruction, and for community learners. We work with new users and historically underserved populations —such as at-risk youth, refugees, senior citizens, and people with disabilities —as well as midcareer professionals who need to sharpen their skills or gain new ones. Together, these digital inclusion programs lay the groundwork for increased economic opportunity and social improvements. \nAn important part of our Global Citizenship Initiative is creating vital and self-sustaining links between digital inclusion programs that train individuals and economic development efforts that create jobs and strengthen local communities. ", "H5\nSect_11\nSect_12\nP_22", "H6\nP\nH6_0\nP_0\nH6_1\nP_1", "H2_4\nSect_15", "H6_16\nP_27\nH6_17\nP_28", "and Microsoft are delivering on the promise to deepen integration \nbetween SAP NetWeaver and .NET \nin order to help customers better \nintegrate their enterprise.… SAP \nNetWeaver’s open integration and application allow customers to leverage their existing software investments to drive innovation through the \nflexibility enabled by interoperability of third-party platforms like .NET. \nThousands of shared customers will \nbenefit from the improved level of \ninteroperability that the PDK [Portal \nDevelopment Kit] for .NET enables.” \nCollaborating with other companies, and even competitors, can be the best way to meet the interoperability needs of \ncustomers, promote innovation, and benefit consumers. In \naddition to our continuing collaboration with governments and the IT industry in general, Microsoft has entered into agreements to promote interoperability with AOL, Yahoo, Cisco, Oracle, palmOne, Toshiba, Motorola, Symbian, Sun Microsystems, Research in Motion, Nokia, Vodaphone, IBM, SAP, BEA, and Siemens, among many others. Microsoft is dedicated to meeting customers’ interoperability needs, now and in the future. ", "H2_5\nSect_16\nSect_17\nP_26", "H2_8\nSect_28", "Siegburg, for example, uses a Unix-based application for \nits financial system. BizTalk calls a Web service to interact \nwith the application so that citizens can pay service \nfees and fines directly over the Web. With the Starter \nKit, it is possible to build a layer on top of the different technologies, creating the bridge they need to work \ntogether efficiently. It can locate the data at the right point and transport it between the Internet and the back office. \nAchieving interoperability with the EGSK has given the City of Siegburg the ability to provide one-stop service through its municipal Web portal. Services are available to citizens around \nthe clock, and they do not have go to municipal offices to stand in line and fill in paper forms. With one password, they \ncan use many different applications, but all have the same look and functionality. It is now very easy for the citizens of Siegburg to communicate with the local government. The move to e-government also adds an element of transparency to municipal affairs. It is possible to track an application as it makes its way through different council processes, and any citizen can check his or her information and requests over the Web. \nFor the City of Siegburg, the use of leading-edge Microsoft .NET technology, based on Web services and open standards such as XML, has enabled communication across applications and operating systems regardless of the programming language in which the systems were written. \ntext", "Moreover, in fiscal year 2005, Microsoft made significant \nprogress in settling or resolving our legal differences with \nothers so that we could work together for the benefit of all. For \nexample we settled legal issues with IBM (July 2005), Novell (November 2004), Gateway (April 2005), and Burst.com (March 2005), as well as a class-action suit in Nebraska (April 2005). \nIn addition to these legal settlements, we also continued to solidify our industry relationships and to meet market needs through constructive relationships with partners \nand competitors. For example, in fiscal year 2005 we \nexpanded our areas of cooperation with Sun Microsystems to include IP licensing and product development after settling our legal issues with the company in April 2004. \ncustomers. It will stimulate new products, delivering great new choices for customers who want to combine server products from multiple vendors and achieve seamless computing in a heterogeneous computing environment.” \n— Scott McNealy, Chairman and CEO, Sun Microsystems, commenting on the broad technology collaboration arrangement that Microsoft and Sun entered into in April 2004 for the purposes of enabling their products to work together better and providing greater value to their customers. \n“Sun and Microsoft are working \ntogether…and quite well at that.” ", "H2_9\nSect_29\nSect_30\nP_49", "Microsoft has been working with industry partners on a new generation of software with built-in components to make it “interoperable by design.” One approach to making information more easily understood by different systems is to develop products using XML. In 2005, Microsoft announced that XML technology will be the \ndefault file format in the next version of Microsoft Office, scheduled for release in 2006. Microsoft Office Open \nXML Formats are fully documented \nfile formats with a royalty-free license. \nAny organization can integrate them directly into servers, applications, and business processes without \nfinancial consideration to Microsoft. \nOne important measure of a company’s performance as a corporate citizen is in the way it conducts its business and manages its relationships. Transparency and integrity are at the center of all of Microsoft’s business activities and interactions. They help us maintain our moral compass and do the right thing for consumers, businesses, community partners, governments, shareholders, and employees. Today, perhaps more than ever, stakeholders demand accountability from a global leader such as Microsoft. \nOne of the many ways that Microsoft ensures transparency and integrity is through our responsible business practices, which are guided by our corporate values, codes of conduct, company policies, and business strategies. Through these efforts we aim to promote innovation and competition for \nthe benefit of consumers and our industry. These practices \nalso guide us in our engagements with all parties, helping us to adhere to the highest ethical and legal standards. ", "Like most municipalities, the City of Siegburg, Germany, collects and stores a large amount of data using various methods and software applications running on different operating systems. Specialized information systems handle a range of services provided by the city government, such as processing building permits, vehicle registrations, and passport applications. \nTraditionally, citizens wanting to access a municipal service \nwould have to visit a local office, stand in line, and fill \nin a paper form. A city employee would then enter the information from the form into the relevant computer system. The data would be processed and some weeks later the citizen would receive a response to the request. \nSiegburg wanted to shorten the waiting time and reduce the paperwork by providing citizens and businesses with more convenient access to services over the Internet. To do this, it needed to make electronic forms and services available from a single integrated source, but its systems were built on a collection of different operating systems and applications. \nTo integrate its existing applications and services, and make them available on the Web, the City of Siegburg implemented the E-Government Starter Kit (EGSK), a free platform solution developed by Microsoft Germany \nspecifically for public administrations that need to \nprovide electronic interdepartmental services. \nDeveloped using the Microsoft® .NET Framework, the EGSK enables the interoperability of data and functions by creating XML-based applications, processes, and Web services. Microsoft BizTalk® Server gives automated \nbusiness processes the flexibility to incorporate a human touch at appropriate stages throughout a workflow. ", "H6_19\nP_33", "Microsoft Greater China \n19/F, Millennium Tower, 38 Xiaoyun Road Chaoyang, Beijing 100027, P.R. China Phone: 86.10.8453.8585 www.microsoft.com/china \nMicrosoft Japan \nOdakyu Southern Tower, 2-2-1 Yoyogi Shibuya-ku, Tokyo 151-8583, Japan Phone: 81.3.5454.8000 www.microsoft.com/japan \nMicrosoft Europe, Middle East amp; Africa \nCoeur Défense, Tour B–37e étage 100, Esplanade du Général de Gaulle 92932 Paris La Défense Cédex France Phone: 33.1.70.99.10.00 www.microsoft.com/emea \nMicrosoft Latin America \n6740 North Andrews Avenue, Suite 400 Fort Lauderdale, FL 33309-2136 USA Phone: 954.489.4800 www.microsoft.com/latam \nMicrosoft Canada \n1950 Meadowvale Boulevard Mississauga, Ontario L5N 8L9 Canada Phone: 905.568.0434 www.microsoft.com/canada ", "Microsoft is a leader in developing interoperable products, enabling our customers to select from and combine a wide range of technologies. Microsoft’s approach to interoperability is comprehensive and multifaceted. \nMicrosoft is a world leader in promoting the development and implementation of open technical standards that facilitate interoperability across the widest spectrum of products and \nservices. Such standards range from those defined by the \nnumerous “open standards” bodies to broadly deployed and licensed “proprietary standards” adopted by companies across the marketplace. We implement hundreds of open standards and proprietary standards in our products to enhance their interoperability with other products and services. \nAs part of its commitment to interoperability, Microsoft has implemented a comprehensive IP licensing program. It comprises licensing source code for Microsoft Windows®, \nMicrosoft Office, and other software, including hundreds of Microsoft-designed communications protocols, Office file formats and XML reference schemas, and other \nelements of our diverse IP portfolio such as patents, copyrights, and trademarks. Microsoft respects the IP of \nothers and is also a beneficiary of such licensing programs \nfrom third parties. We believe such licensing encourages innovation, competition, and interoperability. ", "The expectations of our stakeholders —and of everyone inside Microsoft —demand that each of us embody the highest ethical and legal standards. There can be no compromise. \nWe call it a culture of accountability. At every level of the organization —from the Board of Directors to new employees, from the mission statement to individual e-mails —we are accountable for our corporate values and codes of conduct, and we strive to meet or exceed them every day. \nIn recent years, we have taken many steps to strengthen \nour culture of accountability—from establishing an Office \nof Legal Compliance to help employees comply with the legal requirements of the jurisdictions in which they work, to formalizing our Standards of Business Conduct and training \nour employees to ensure that they understand them. In fiscal \nyear 2005, we launched several additional training programs \ntargeted to specific employee audiences, including a revised \nNew Employee Orientation, which emphasizes Microsoft’s expectations that every employee act legally, ethically, and responsibly. ", "H6_8\nP_16\nH6_9\nP_17\nH6_10\nP_18\nH6_11\nP_19", "H6_15\nP_25", "Local Language Program \nIn March 2004, Microsoft launched the Local Language Program, a global initiative that enables governments, universities, and local language authorities to develop language localization resources for Windows XP Home, Windows XP Professional, \nand Office 2003 Editions. Using \nWeb tools provided by Microsoft, sponsoring groups and volunteer translators can develop community glossaries of standardized technical terminology. These glossaries in turn provide the foundation for Language Interface Packs, which enable computer users to adapt their copies \nof Windows and Office to display \nmany commonly used features in their native languages. To date, more than 40 Language Interface Packs have been developed for Windows \nand Office, and we continue to \nreceive many additional requests. ", "H6_4\nP_9", "H6_12\nP_20\nH6_13\nP_21", "Recently, we transformed conflict into constructive \nengagement by settling legal issues with competitors such as Sun Microsystems and IBM and entering into new collaborative agreements with them to provide better products and services to our mutual customers. \nIn fiscal year 2005, we launched several new training programs \nfor different employee audiences, including a revised New Employee Orientation, designed to help make certain that Microsoft employees act legally, ethically, and responsibly. \nmanagement accountability, provides a structure for setting and attaining company objectives and monitoring performance, helps to ensure business integrity and responsible business practices, \nand encourages the efficient \nuse of company resources. ", "Trustworthy Computing \nComputers help transport people into space, control critical aircraft \nsystems for millions of flights annually, \nand move trillions of dollars around the globe every day. Even so, many people are hesitant about trusting computers with personal information, \nsuch as financial and medical records, \nbecause they have concerns about computer security, system reliability, and data privacy. We understand those concerns, and to address them we launched Trustworthy Computing, a long-term, collaborative effort to provide secure, private, and reliable computing experiences for everyone. At Microsoft, Trustworthy Computing is a core priority that guides virtually everything we do. \nOur three-pronged approach to Trustworthy Computing includes extensive technology investments, proactive customer guidance and engagement, and responsible industry leadership and collaboration. ", "…at a glance_0\nrecent examples of our work _0\nGuatemala \nThere are at least 50 million people with disabilities in Latin America and the Caribbean. Most are unemployed and 82 percent live in poverty. That used to describe Reyna Ramos, who has a hard time walking and was unemployed for seven years because of her disability. Today, Reyna is an entrepreneur with a successful business, thanks to a partnership between the Organization of American States and Microsoft that provided training in basic computer and business skills. Reyna now owns and operates an Internet café in her home, advises her neighbors on how to obtain microloans to start their own businesses, and plans to establish a nationwide network of Internet cafés in Guatemala. \nAustralia _0\nSince 2000, Microsoft has invested more than AU$20 million to support 14,000 Australian businesses as partners, suppliers, and investors in leading-edge technology. In partnership with state governments in Australia, Microsoft has invested more than AU$10 million in high- technology centers to foster innovation across a range of education, defense, justice, healthcare, and e-government projects. In addition, we have established more than 160 Unlimited Potential community technology centers throughout Australia, enabling more than 100,000 people to develop or broaden their ICT skills. \nMicrosoft 2005 Global Citizenship Report _3", "Brazil \nMicrosoft supports 17 innovation centers in Brazil that offer training scholarships and research opportunities for teachers and \nstudents; courses, certification, and technical \nguidance for software developers; and specialized services to help companies test their solutions. Approximately 70 percent of all students who developed projects at \nthe centers in fiscal year 2005 found jobs \nsoon after completing the program. ", "H6_22\nP_40\nH6_23\nP_41", "Our citizenship reporting reflects the structure of our Global Citizenship Initiative and \nrelated activities because we want our stakeholders —employees, customers, partners, shareholders, and others—to be able to compare our program goals and objectives with our results. Our report is a combination of two components: the following thematic print volume and a more expansive and comprehensive online publication. The thematic print volume highlights and provides an overview of some key citizenship issues the company \naddressed in the last fiscal year. The more comprehensive version of the report is an online publication that we will update on a rolling basis throughout the year. In the online portion of this report, we have included references to applicable Global Report Initiative (GRI) performance indicators to assist stakeholders in their review and assessment of our Global Citizenship Initiative. (More information about the GRI performance indicators is available at http://www.globalreporting.org.) The function of the GRI performance indicators is to provide information about the economic, environmental, and social impacts of organizations in a manner that enhances comparability between reports and \norganizations. In addition, both the print and online components of the report provide \nkey links to more detailed information on Microsoft.com, Microsoft’s corporate Web site. ", "H6_2\nP_5", "H6_26\nP_46\nH6_27\nP_47", "Chairman and Chief Executive Officer \nChief Software Architect \nExecutive Welcome _0\nChief Executive Officer ", "H6_5\nP_11", "At Microsoft, we understand that our reputation is a direct \nreflection of how we demonstrate our corporate values \nthrough our actions every day. We believe that constructive engagement with customers, partners, shareholders, governments, NGOs, and other stakeholders is an essential part of helping us to identify and manage key issues that will test how successfully we live our values. This improves our business decision–making processes, helps us to anticipate and respond to the changing expectations of society, and enables us to maintain a broad and balanced perspective about issues affecting our business and society. \nMore information about Microsoft’s Global Citizenship Initiative and our progress in each of the pillars is available at www.microsoft.com/mscorp/citizenship/report/. ", "LI", "LBody\nLBody_0\nLBody_1\nLBody_2", "H6_24\nP_42\nH6_25\nP_43", "H6_28\nP_48", "LI_0", "LBody_3\nLBody_4\nLBody_5\nLBody_6", "This report focuses on Microsoft’s fiscal year 2005 (which began July 1, 2004, and ended June 30, 2005). All data are for that period unless otherwise noted. \nCurrency \nAll money figures in this report are in U.S. dollars unless otherwise noted. ", "The terms “Global Citizenship” and “Corporate Citizenship,” which are used throughout this report, are interchangeable with similar terms such as “Corporate Social Responsibility” and “Corporate Sustainability.” \nMore information about the GRI performance indicators is available at \nhttp://www.globalreporting.org/. ", "Microsoft and the Namibian government have been implementing a joint project that puts technology to work for educators and students. \nThe African Pathfinder \ninitiative is designed to help bring computer technology to schools and teaching curricula around the country. Microsoft has now signed public private partnerships with 15 African countries to replicate the model. ", "At Microsoft, we believe that every successful corporation has a \nresponsibility to use its resources and influence to make a positive impact \non the world and its people. Microsoft’s commitment and responsibilities as a global corporate citizen are grounded in our company mission and values, manifested through our business practices and operations, and carried out by thousands of Microsoft employees and suppliers worldwide. ", "Demonstrating Responsible Business Practices _0\nMicrosoft 2005 Global Citizenship Report _0\nDemonstrating Responsible Business Practices _1", "In early 2004, Microsoft worked diligently to address concerns raised by a European Commission investigation, attempting to resolve the issues amicably through a settlement. When this proved not to be possible, the European Commission issued a decision in March 2004, and Microsoft appealed the decision based on the merits of the case and requested a suspension of the interim measures during the appeal process. After the request for suspension was denied by the European Court of First Instance in December 2004, Microsoft’s focus turned toward full and complete compliance. \nTo meet its obligations under the European Commission’s decision, Microsoft implemented a protocol licensing program to make the technical information used to help Microsoft servers communicate with non-Microsoft servers available to partners and competitors. The company also developed a version of the Windows operating system that does not include the Windows Media® Player function. \nFollowing feedback based on extensive industry market testing by the Commission, Microsoft made additional changes to further implement the Commission’s remedies. The company continues the appeal process and expects to present its case before the European Court of First Instance in late 2005 or sometime in 2006. Meanwhile, Microsoft continues to put a high priority on complying in full with its legal obligations as well as developing constructive relationships with European governments and institutions. ", "Microsoft collaborates with law enforcement agencies around the world on programs like the Anti-Virus Rewards Program, which offers reward money to help stop people who create and launch viruses, worms, and other malicious code attacks. \nTo date, Microsoft has filed \nmore than 200 lawsuits against spammers and cybercriminals worldwide. We also have worked with many local and global law enforcement partners —including Interpol, the International Centre of Missing and Exploited Children, and the Australian High Technology Crime Centre—to provide training and to help with cybercrime investigations in more than 70 countries. ", "12 from next semester onward.” \n—Mr. Supoj Puyati, Headmaster, Ban Huaysalao School, Thailand \nMicrosoft 2005 Global Citizenship Report _4", "Humanitarian Relief \nLike many other people around the world, Microsoft employees watched the tragic events of the Indian Ocean tsunami with an overwhelming desire to help. More than 8,000 Microsoft employees responded to the disaster, donating more than $2.9 million for relief and recovery efforts. Microsoft contributed another $4.7 million in matching funds and direct corporate support, for a total contribution of $7.6 million to date. We also formed the Asia Disaster Technical Response Team to develop technology-based solutions for the relief community, and Microsoft employees continue to provide volunteer support for on-the-ground relief efforts. \nMicrosoft 2005 Global Citizenship Report _5", "Microsoft Corporation \nOne Microsoft Way Redmond, WA 98052-8300 USA Phone: 425.882.8080 www.microsoft.com \nMicrosoft Asia Pacific ", "Executive Welcome .................................................................... 2 A Global Citizen........................................................................... 4 Global Citizenship at Microsoft ................................................ 6 Demonstrating Responsible Business Practices..................... 8 Improving Securityand Internet Safety ................................18 Advancing theKnowledgeEconomy.....................................26 Our Company ............................................................................ 34 Looking to the Future...............................................................36 \nMicrosoft 2005 Global Citizenship Report ", "Microsoft worked closely with Canadian law enforcement to develop the Children’s Exploitation Tracking System (CETS), which already has helped local police identify and track child predators and their victims. \nA Global Citizen _0", "H6_6\nP_13", "H5_0\nP_23", "H6_14\nP_24", "more efficiently and cost-effectively. HP \nand Microsoft will transform the way governments interact with their citizens and citizens with their governments.” ", "Demonstrating Responsible Business Practices _2\nMicrosoft 2005 Global Citizenship Report _1", "As an industry leader, Microsoft recognizes its responsibility to help make the Internet safer and computing more secure. Our ultimate goal is to help create an environment in which adults, children, businesses, and other organizations \ncan enjoy the full benefits of the Internet without ", "H5_1\nP_45", "Released in early fiscal year 2005, Windows XP Service Pack 2 \nwith Advanced Security Technologies brings Windows XP users stronger default security settings. It can automatically install new security features that help users protect their computers from hackers, viruses, and other security risks. To keep pace with the dynamic nature of security threats to businesses, Microsoft launched Windows Server™ 2003 Service Pack 1 with new security features to help companies and organizations keep their IT environments safe and under control. ", "LI_1", "LBody_7\nLBody_8", "About This Report ", "Reporting Scope and Structure ", "Reporting Period ", "Terminology ", "Executive Welcome ", "the benefits of technology to the people that can benefit most.” ", "Bill Gates Steven A. Ballmer ", "Microsoft 2005 Global Citizenship Report ", "A Global Citizen ", "Canada ", "P_8", "Since launching Unlimited Potential in 2003, Microsoft has donated US$15 million in cash and software to 48 NGOs, which support more than 1,900 community technology and learning centers that provide technology skills in Latin America. To date, this program has empowered nearly 4 million people in 17 Latin American countries. ", "European Union ", "Working with leading companies and community organizations, Microsoft established the European Union Grants Advisor program, which helps small and medium-sized businesses in Europe apply for structural funding from the EU and use those grants to improve productivity through technology. After completing a successful pilot in Spain, Hungary, and Poland, the program was rolled out across Europe this year. ", "Africa ", "Internet Safety Month in Japan, cosponsored by Microsoft, government, and other industry leaders in June and July 2005, focused on teaching consumers how to stay safe online. ", "Southeast Asia ", "When a tsunami struck Southeast Asia, killing tens of thousands of people and leaving many others injured or homeless, more than 8,000 Microsoft employees rushed to help by donating cash and volunteering for onthe-ground relief efforts. Together, Microsoft and its employees donated US$7.6 million. ", "H6_7", "Australia ", "Marvin is an award-winning application for training, education, and presentation authoring that uses customized, three-dimensional, animated characters to communicate important information to audiences in their own languages. Research shows that using Marvin may increase attendance and information retention a hundredfold over traditional communication. Through Partners in Learning, Microsoft is providing professional training to help teachers incorporate Marvin into classroom instruction. ", "Global Citizenship at Microsoft ", "Microsoft’s ongoing work in the area of global citizenship is focused on mobilizing our resources across the company to create opportunities in communities around the world, to foster economic growth, and to serve the public good through innovative technologies and partnerships with government, industry, and community organizations. ", "The Global Citizenship Initiative ", "At Microsoft, our Global Citizenship Initiative is organized around three pillars, or strategic concepts, which form the foundation of our citizenship activities worldwide: ", "Demonstrating Responsible Business Practices ", "Ensure integrity and transparency in all of our business practices, with emphasis on strong governance, legal and antitrust compliance, support for industry standards, respect for intellectual property, interoperability of our products, and commitment to openness in our technology practices. ", "Improving Security and Internet Safety ", "Address the societal challenges of information and communications technology (ICT) —such as security, privacy, children’s online safety, and spam —through investments in security technology; partnering with industry, governments, and law enforcement to combat cybercrime; and broadly distributing information to help customers make their systems more secure. ", "Advancing the Knowledge Economy ", "Partner with governments and communities around the world to help strengthen local economies —through digital inclusion initiatives, innovation, and programs that stimulate growth of the local technology industry —while contributing to the vitality of the global economy through ongoing technology innovation that leads to job creation and overall economic growth. ", "Constructive Stakeholder Engagement ", "An Invitation to Our Readers ", "We appreciate frank and honest feedback, both positive and negative, because it helps us to improve. We invite you to offer your observations and suggestions about this report and about Microsoft’s global citizenship activities. Please send your comments to citizenship@microsoft.com. ", "Global Citizenship at Microsoft ", "Demonstrating Responsible Business Practices ", "The way we work with customers, partners, governments, vendors, and communities worldwide is fundamental to our success as a company. Microsoft promotes a culture of accountability and collaboration. We strive to ensure the quality and integrity of all of our business relationships and operations through strong corporate governance, full legal compliance, and constructive engagements with customers and partners, and by designing functionality into our software to make it highly interoperable with other companies’ technology. ", "More information about Microsoft’s Global Citizenship Initiative and responsible business practices is available at www.microsoft.com/mscorp/citizenship/. ", "…at a glance", "recent examples of our work ", "Interoperability ", "In a survey by Jupiter Research, 72 percent of IT managers rated Microsoft technologies as the most interoperable within their existing environments. ", "Compliance and Competition ", "Microsoft 2005 Global Citizenship Report ", "Responsible Business Practices ", "Interoperable by Design ", "Creating Opportunity Through Transparency and Interoperability ", "A clear example of our commitment to transparency is our success in making our products work well with those of other manufacturers, including our competitors. Interoperability —the ability of heterogeneous IT networks, applications, or components to exchange and use information —has increasingly become a key requirement for both industry and government. As a result, it also has become a key focus for Microsoft. ", "The Value of Interoperability for Customers ", "— Laura DiDio, Senior Analyst, Yankee Group ", "— George Riedel, Vice President, ", "Providing Leadership on Interoperability ", "The Microsoft Approach ", " software that is “interoperable by design” ", " and implementing industry standards (including open standards) in products and services ", " and licensing proprietary technologies and intellectual property (IP) to the industry, including competitors ", " with partners, competitors, and governments ", "Microsoft 2005 Global Citizenship Report ", "Integrity and Compliance ", "European Commission ", "Antitrust Compliance ", "As a responsible industry leader, Microsoft continues to meet all of its obligations under the 2002 Consent Decree with the U.S. Department of Justice and state Attorneys General. We have worked to strengthen programs that were created prior to the Consent Decree in response to the dynamics of the market, as well as those related directly to the settlement. For example, Microsoft: Maintained the standardized Windows license and uniform royalty rates for all PC manufacturers. ", "For more information on this issue please visit www.microsoft.com/mscorp/ip/protocols. ", "In ethics as in software, anything short of the highest standard is not acceptable. At Microsoft, we are dedicated to achieving the highest standards in everything we do. ", "Demonstrating Responsible Business Practices ", "Microsoft 2005 Global Citizenship Report ", "Improving Security and Internet Safety ", "concerns about their safety, privacy, or security. Meanwhile, we continue to work toward that goal with the help of government, industry, and law enforcement partners worldwide, and to help consumers and our customers understand what they can do to protect themselves and their systems. ", "More information about the Microsoft’s Global Citizenship Initiative and our work on security and Internet safety is available at www.microsoft.com/mscorp/citizenship/. ", "…at a glance ", "recent examples of our work ", "Simpler, Safer Computing ", "Innovative Technologies ", "Security breaches can come in unexpected forms. That’s why Microsoft is developing a series of new technologies that help prevent and protect against spam and phishing attacks by various means, including proof of a sender’s identity and evidence of the sender’s reputation, which adds another layer of safety and security on any device. ", "Law Enforcement Partnerships ", "Microsoft 2005 Global Citizenship Report ", "Security and Internet Safety ", " practice openness and respect for others. ", " are willing to take on big challenges and see them through. ", " are self-critical and committed to personal excellence and self-improvement. ", " are accountable for commitments, results, and quality to customers, shareholders, partners, and employees. ", "We have passion for our customers and partners, and for technology. ", "Technology Innovation to help make our products more secure, to improve the software update process, and to provide new features and products that help improve safety. ", "Partnership and Collaboration with government ", "Although no system as open and interconnected as the Internet can ever be made perfectly secure, through our investments in technology fundamentals and innovation, and our collaboration with industry and government, we continue to move closer to that ideal. At Microsoft, we focus on three core strategies to improve security and increase Internet safety: ", "Microsoft 2005 Global Citizenship Report ", "— The Honourable Anne McLellan, Canadian Deputy Prime Minister ", "Microsoft 2005 Global Citizenship Report ", "Microsoft 2005 Global Citizenship Report ", "Microsoft 2005 Global Citizenship Report ", "post-consumer waste fiber. ", "paper broker. " ]

[ "H5_2\nP_20\nP_21\nP_22\nP_23\nP_24\nP_25\nP_26\nP_27", "H5_3\nP_38\nP_39", "TR", "TH\nTH_0\nTD\nTH_1\nTD_0\nTH_2\nTD_1\nTH_3\nTD_2\nTH_4\nTD_3\nTH_5\nTD_4", "What fueled this revolution was the belief that software—if made affordable and accessible to more people— would remove barriers and transform technology into an extraordinary tool that would empower millions of people around the world. \nToday, Microsoft employs more than 54,000 people in over 80 countries. From programming languages and operating systems to Internet services and games, we’ve created just about every kind of computer program imaginable. And we’ve never lost our passion for developing great software that enables people and businesses throughout the world to realize their full potential. \nAs Microsoft has grown, so have our responsibilities as a global industry leader. Those responsibilities require us not only to compete, but also to collaborate. We make investments that help build the communities where we do business, and create opportunities for people who are disadvantaged. To ensure that the way we operate our business limits our impact on the environment, we recycle and reuse many materials to conserve natural resources. We work hard to maintain a positive work environment for our employees and vendors. And, underlying it all, we create innovative software that helps change the world by empowering people to transform their lives and open the door to their individual dreams. \nOur Core Values \nSix core values guide Microsoft and serve as the foundation for everything we do. More than a corporate philosophy, our values are as fundamental to our business as an operating system is to a personal computer. They are: \nIntegrity and honesty \nPassion for customers, partners, \nand technology \nOpen and respectful with others, \nand dedicated to making them better \nWillingness to take on big \nchallenges and see them through \nSelf-critical, questioning, and committed to personal excellence and self-improvement \nAccountable for commitments, results, and quality to customers, shareholders, partners, and employees \nOur Mission \nOur mission grew out of our core values and remains closely aligned with them. It is to enable people and businesses throughout the world to realize their full potential. \nOrganized for Service \nWe have organized Microsoft around seven core business groups, because we believe this structure offers us the best opportunity to serve our customers—and to provide our investors and partners with a clearer view of how we operate our business and govern the company. Those business groups are: \nWindows® Client, including the Microsoft Windows XP, Windows 2000, and Windows Embedded operating systems ", "H5_5\nP_64\nP_65\nP_66", "Microsoft Corporation \nOne Microsoft Way Redmond, WA 98052-6399 USA Phone: 425.882.8080 \nwww.microsoft.com \nMicrosoft Asia Pacific \n5 Temasek Boulevard #09-03 Suntec City Tower 5 Singapore 038985 Phone: 65.6337.6088 \nwww.microsoft.com/asia \nMicrosoft Greater China \n19/F, Millennium Tower 38 Xiaoyun Road Chaoyang Beijing 100027 \nP.R. China Phone: 86.10.8453.8989 \nMicrosoft Japan \nOdakyu Southern Tower 2-2-1 Yoyogi Shibuya-ku, Tokyo 151-8583 Japan Phone: 81.3.5454.8000 \nwww.microsoft.com/japan \nMicrosoft Latin America \n899 West Cypress Creek Road Suite 400 Fort Lauderdale, FL 33309 USA Phone: 954.489.4800 \nwww.microsoft.com/latam ", "The real value of accessibility is reflected in the way thousands of people with disabilities have used technology to change their lives for the better— one of the clearest examples of how technology can empower people to realize their potential. For example: \nPage 12 Microsoft Citizenship Report Partnering with Customers \nProtecting Your Privacy \nAt Microsoft, we are committed to helping you protect your privacy and personal information, and to developing technologies that enhance the safety and security of your computing experience. In June 2003, Computer-world ranked Microsoft as one of the top 10 privacy leaders among Fortune 100 companies, which the magazine defined as “companies that have taken the most steps indicating a long-term, strategic commitment to data privacy.” \nMicrosoft offers a wide variety of products, Web sites, and services. Many of these have their own privacy statements that describe exactly how they collect and use information. We strongly encourage you to review the specific privacy statements that apply to your interaction with our company. \nAs a sign of our commitment to helping protect consumer privacy, Microsoft is a participant in the Safe Harbor Agreement between the United States and the European Union, and follows the Safe Harbor principles published by the U.S. Department of Commerce. \nMicrosoft adheres to two overarching privacy principles: \nKeeping Your Personal Information Secure \nMicrosoft is committed to keeping your personal information secure. We use a variety of advanced security technologies and procedures to help protect your personal information from unauthorized access, use, or disclosure. For example, we store the personal information you provide on computer servers located in controlled facilities. When we transmit sensitive personal information (such as a credit card number) over the Internet, we shield it with advanced encryption, such as the Secure Sockets Layer (SSL) protocol. \nMicrosoft and Public Policy \nSome problems that affect our customers are simply too big or too complex for one company to solve alone. Because of Microsoft’s position as a global technology and business leader, we are increasingly involved in alliances with industry colleagues and government agencies that are attempting to find solutions to some of the most difficult challenges facing businesses and consumers today. \nIdentity Theft \nIdentity theft occurs when criminals illegally gain access to a consumer’s personal information, make unauthorized purchases in their name, or divert funds from their bank accounts. In addition to causing financial and emotional trauma, identity theft may have a chilling effect on electronic commerce if consumers grow fearful that their identities may be stolen during online transactions. Microsoft is working with other industry leaders, legislators, and law enforcement officials to prevent and prosecute identity theft. ", "Eric Rudder, Senior Vice President, Servers and Tools, Microsoft Corporation \nPage 16 Microsoft Citizenship Report Responsible Leadership \nMicrosoft also has a longstanding, unwavering commitment to our partners. Our products and solutions have always been sold and deployed through partner channels, and we have never strayed from our promise to enable our partners to develop, sell, and support great technology solutions. \nMicrosoft partners with roughly 750,000 companies worldwide, and more than 350,000 of those are outside the United States. This affiliation helps our partners increase revenues, lower costs, bring new products to market faster, and improve their recognition in the marketplace by linking their own products with the Microsoft brand. According to International Data Corporation (IDC) data and Microsoft revenue figures, for every $1 Microsoft earned in 2001, our partners generated $8 in revenue. \nA strong partner model will be even more critical in the times ahead. To realize new growth opportunities, we need to look at how our technology can enable businesses to become more agile. How we enable business agility will vary dramatically from one customer to another, and determining individual business needs is where our partners play a critical role. Microsoft can only succeed in this if our partners are successful, too. \nTo ensure this, we must provide the tools, training, and resources partners need, and keep communication flowing consistently in both directions. Microsoft is developing innovative new programs to help our partners succeed, and we’re making major end-to-end investments inside the company to create a framework that will enable our partner ecosystem to remain strong and vibrant. \nMicrosoft and Innovation \nWe live in an age where changes in computer technology are leading to increasingly dramatic innovations in the way we use computers and how technology enhances our daily lives. Breakthroughs in computing have led to exponential growth in processing power, graphics, storage, networking, and other areas, with capacity often doubling or quadrupling in a few months to a year. These technological advances have made possible a proliferation of new devices—digital cameras, Tablet PCs, Pocket PCs, and Smartphones—that offer new ways for us to stay connected. \nIn 1991, Microsoft recognized the approaching technology revolution and saw an opportunity to lead it. Microsoft made a strong commitment to basic computer science research by establishing the first software-company research lab, and the company continues to invest heavily in research. In fiscal year 2003, Microsoft invested $4.7 billion in research and development (Ramp;D). \nPage 18 Microsoft Citizenship Report Responsible Leadership \n2001 Conference on Human Factors in Computing Systems, and 30 percent of papers at the 2001 Programming Language Design and Implementation conference on programming languages. Microsoft researchers have also contributed thousands of articles to prominent technical journals. \nMaking Dreams Real \nAt its heart, MSR has two goals: driving innovations that can change the industry in areas such as natural language research and programmer productivity, and transferring those innovations from the lab into the hands of users. Today, MSR’s work can be found in virtually every Microsoft product. For example: ", "Today, Microsoft Research (MSR) is responsible for new technologies that have found their way into numerous products, but its primary focus is on finding answers to some of computer science’s most vexing questions. How can computers be made to understand the nuances and diversity of human speech? What does it mean to recognize a face, and how can a machine be trained to do it? What new tools can be created to revolutionize the software development process? \nAs the pace of technological change accelerates, companies face a growing dilemma. Product life cycles are shrinking as never before—more than half the revenues of America’s leading technology companies now come from products developed during the previous five years, up from about a third in 1992. This creates enormous pressure for rapid returns from product development, and can make long-term research seem secondary to research that will pay off in the next business quarter. \nBut if companies are to thrive beyond the next quarter and really help shape the future, they must constantly replenish their long-term reserves of intellectual capital. Research has never been more important. \nIndustry Leadership through Innovation \nMSR is a world-class research organization dedicated to fostering software innovation, inventing the next generation of computing technologies, and finding answers to the greatest challenges in computing. At its research labs in Europe, Asia, and North America, MSR employs 700 researchers in 55 distinct areas of computer science, from artificial intelligence to data mining. \nThanks to MSR breakthroughs in areas such as programming, multimedia, and database management, Microsoft is viewed as a leader in the research community. Several Microsoft researchers are members of the National Academy of Engineering, some have received an Academy Award for technical achievement, and in Britain one of our researchers was honored with a knighthood. Other prestigious honors received by our researchers include: \nTuring Award of the Association \nfor Computing Machinery \nNational Medal of Technology \nKyoto Prize in Advanced Technology \nFields Medal of the International \nMathematical Union \nThe quality of the work being done by Microsoft researchers is evident from their presence at many leading research conferences. For example, MSR accounted for 13 percent of peer-reviewed papers presented at the CHI ", "P_14\nP_15", "Each year, we host faculty summits at Microsoft, bringing together hundreds of faculty members from all over the world. It’s a chance for us to hear what’s going on across the academic research community, to learn how we can help and participate, and to show educators and researchers what we’re working on. \nSupporting Open Standards \nAs an industry leader, Microsoft is committed to working with other companies and independent standards bodies to develop open technology standards that enable interoperability. The fundamental purpose of open standards is to promote interoperability across diverse hardware and software products, and to spark competition and innovation among vendors who want to differentiate their implementations of the standards. \nOpen standards are established through a consensus-based process. The main function of an independent standards body is to provide the forum in which consensus can be reached on specific issues and uniform technical specifications can be established. The open standards process is neutral concerning software development, welcoming all and favoring none in its quest for the best interoperability solutions. \nMicrosoft participates actively as a member of numerous international standards organizations, and frequently contributes directly to the development of individual standards. Among the most familiar standards bodies with which we work are the Internet Engineering Task Force (IETF), the World Wide Web Consortium (W3C), and the European Telecommunications Standards Institute (ETSI). \nMicrosoft has been instrumental in creating, supporting, and promoting open standards such as XML, SOAP (Simple Object Access Protocol), and UDDI (Universal Description, Discovery, and Integration). Each of these plays a key role in lowering the cost and complexity of sharing data over networks and across applications. \nCommercial software developers, who rely on the sale of software licenses for most of their revenue, devote substantial resources to developing software that is standards-compliant and interoperable. The reason is simple: the extent to which software inter-operates with various hardware devices and other software influences customer demand for that product. \nWe’re Just Getting Started \nThis first decade of the 21st century, a time Bill Gates has called the “Digital Decade,” holds immense promise. \nWe believe that computers powered by advanced software will make Internet-based computing and communications easier, more personalized, and more productive for individuals and businesses around the world. We envision smart software continuing to weave technology into the fabric of our everyday lives—keeping us connected to the people and information that are meaningful to us. And we know that we will continue to be motivated and inspired by how innovative software empowers people worldwide to change their lives. \nOur dedication to constant innovation is reflected in our ongoing commitment to research and development. Over the past 10 years, we have invested more than $23 billion in researching and developing innovative solutions to the technology problems of today and tomorrow—in solving the hard problems our customers are asking us to solve. It’s our belief that the true measure of our success is not in the power of our software, but in the potential it unleashes in the people who use it. ", "H5_1\nP_8\nP_9\nP_10\nP_11", "Sebastiaan Hermans is training to be a judge in the Netherlands court system. The intense six-year program of study and supervised practice requires an enormous amount of reading, writing, and note-taking. Hermans, who was visually impaired at an early age, keeps up with the rigorous demands of his training by using a screen reader that combines speech, Braille integrated magnification, a variety of other assistive technologies, and compatible software from Microsoft. \nRick Burgos is a good listener— even though he has an 80-percent hearing loss. As an advisory support specialist in a global customer support center for a major computer manufacturer, listening is a crucial part of his job. He facilitates this with a range of Microsoft products, plus a wireless microphone, amplifier, and headset. \nTrustworthy Computing \nThe Internet has become an increasingly powerful tool for business and communication, but it has also created new security risks that can threaten the confidentiality, integrity, and availability of data and systems. \nAs a leader in the computing industry, Microsoft has a responsibility to help its customers address these concerns. \nIn 2002, we set out to build a Trustworthy Computing environment for our customers, to make computing as reliable as possible. To meet our goal of creating products that combine the best of innovation and predictability, we are focusing on four specific areas: security, privacy, reliability, and business integrity. This is a long-term effort, but we have already made significant progress. Our continued work on security serves as an example of our commitment to this initiative. \nBased on discussions with customers and our own internal reviews, it was clear that we needed to create a framework that would support the kind of innovation, state-of-the-art processes, and cultural shifts necessary to make a fundamental advance in the security of our software products. In the past year we have created new product-design methodologies, coding practices, test procedures, security-incident handling, and product-support processes that meet the objectives of this security framework. \nIn early 2002 we took the unprecedented step of stopping the development work of some 8,500 Windows engineers while the company conducted 10 weeks of intensive security training, analyzed the Windows code base, and instituted a threat-modeling process that taught program managers, architects, and testers to think like software attackers. Half of all the bugs identified during the Windows security push were found during threat analysis. We have now carried out major security pushes in all of our key product groups. \nIn the past, a product feature was typically enabled by default if there was any possibility that a customer might want to use it. Today, the most secure option is usually the product default setting, which means that most features are now turned off by default to help prevent them from being used as a potential back door for attackers. To help customers deploy and maintain our products securely, we have also updated and expanded our security tools. ", "P_52\nH3_21\nSect_23", "At Microsoft, our commitment to diversity goes beyond recruiting and employing a diverse workforce. It’s a vital component of our ongoing mission: to enable people and businesses throughout the world to realize their full potential. \nMicrosoft Europe, Middle East amp; Africa \nCoeur Défense, Tour B - 37e étage 100, Esplanade du Général de Gaulle 92932 Paris La Defense Cedex France Phone: 33.01.70.99.10.67 \nwww.microsoft.com/emea \nMicrosoft Canada \n1950 Meadowvale Boulevard Mississauga, Ontario L5N 8L9 Canada Phone: 905.568.0434 \nwww.microsoft.com/canada \n© 2003 Microsoft Corporation. All rights reserved. Microsoft, bCentral, ClearType, Great Plains, Hotmail, MSDN, MSN, Navision, Visio, Visual Studio, Windows, Windows Media, Windows Server and Xbox are either registered trademarks or trademarks of Microsoft Corporation, Great Plains Software, Inc., Microsoft Business Solutions ApS or their affiliates in the United States and/or other countries. Great Plains Software, Inc., and Microsoft Business Solutions ApS are subsidiaries of Microsoft Corporation. The names of actual companies and products mentioned herein may be the trademarks of their respective owners. \nPrinted on paper containing 20% post-consumer waste. ", "Just as we constantly update and improve our products, we want to continually evolve our company to ensure that we are always in the best position to create innovative new technologies—and to provide outstanding service to our customers. \nBusiness Operations \nResponsible corporate citizenship is defined by good behavior, not good intentions. At Microsoft, we’re proud of the way we operate every aspect of our business, and maintaining that high standard is the responsibility of every Microsoft employee, contractor, and vendor. That’s why we have codes of conduct, environmental policies, and other guidelines that spell out exactly what we expect from the people who work at, and with, Microsoft. \nOffice of Legal Compliance \nWe created the Office of Legal Compliance at Microsoft as a resource to enhance ethical business practices and our ability to comply with a wide range of legal obligations, and to help our employees and vendors understand their responsibilities under the law. We have established a comprehensive education and compliance assurance program at Microsoft, which addresses employment law, anti-discrimination statutes, privacy, civil rights, securities, international trade interactions, competition law, and many other areas. \nEmployees who need guidance about a business practice or compliance issue, or who wish to report a compliance concern, can call the Business Conduct Line at (877) 320-6738 or contact the director of compliance directly. Employees outside the United States can call the Business Conduct Line collect by accessing an international operator and asking to place a collect call to (704) 540-0139. Partners, customers, or others outside the company who have concerns about compliance or Microsoft business practices may report their concerns to the Office of Legal Compliance by calling the Business Conduct Line, e-mailing msft.buscond@alertline.com or buscond@microsoft.com, \nor sending a confidential fax to the director of compliance at \n(425) 705-2985. For more information, please visit www.microsoft.com/ mscorp/legal/buscond/. ", "Error reports help identify bugs not only in our own software, but also in Windows-based applications made by independent hardware and software vendors. About 450 companies have accessed our shared database for error reports related to their products, and are using that information to make dramatic improvements. We’ve also created software that enables corporate customers to redirect error reports to their own servers, so that administrators can find and resolve the problems that are having the greatest effect on their systems. \nOur Commitment to Accessibility \nOne example of Microsoft listening and responding to customers is our longstanding commitment to developing accessible technology that creates new opportunities for people with disabilities. Microsoft is continually exploring and evolving accessibility solutions that are integrated with our products. \nAccording to the United Nations, 10 percent of the world’s population— more than 600 million people—have some kind of disability. Whether those disabilities are as serious as amputation, blindness, deafness, or paralysis, or as common as the inevitable changes in vision, hearing, and dexterity that come with age, they can have profound effects on a person’s ability to live and work productively. \nAt Microsoft, our dedication to accessibility reaches back as far as 1988 and the launch of Windows 2.0. It continues today with the unique accessibility features built into Office XP and Windows XP. Since our initial involvement with accessibility issues, we have continued our dedication to improving the accessibility of our products and creating new and better technologies that everyone can use. Many technology features that were originally designed to assist people with disabilities—such as adjustable font sizes and audible alerts—can help others tailor their work environment to their particular preferences and needs. \nOur Accessible Technology Group (ATG) has approximately 40 people working with product developers, assistive technology companies, and disability advocates to help ensure that people with disabilities can use software developed by Microsoft and other companies. The overall mission of ATG is to make accessibility an integral part of all Microsoft platforms, products, programs, and services. In addition, ATG increases awareness of what is possible today with accessible technology. ATG also manages the “Microsoft Assistive Technology Vendor Program,” which includes an online catalog that makes it easy for customers to locate and purchase Windows-compatible assistive technology products. To access the Assistive Technology Vendor Program online catalog, please visit \nwww.microsoft.com/enable/at/ search.asp. \nWe also support many nonprofit organizations that work to increase education, training, and employment opportunities for people with disabilities. For example, we teamed with the American Association of People with Disabilities (AAPD) to establish the Federal Internship Program. In 2003 and 2004, this program will provide paid, IT-focused summer internships at U.S. government agencies for 25 college students with disabilities. A $325,000 grant from Microsoft will provide each student with a stipend, free accessible housing and transportation, and any special worksite accommodations that may be necessary. ", "Page 08 Microsoft Citizenship Report Partnering with Customers \nSupporting Our Customers \nMicrosoft Product Support Services (PSS) provides worldwide customer service and technical support for Microsoft customers—from individual consumers to the largest multinational corporations. Support offerings include a vast array of self-help, assisted support, and managed support services to meet our customers’ needs. We deploy approximately 9,000 support professionals around the world as part of our ongoing effort to reach more customers and keep our support teams close to them. PSS provides continuous technical support and customer service for more than 170 different products—24 hours a day, 365 days a year—and handles more than 6 million support cases every year via telephone, Web, and on-site contact. \nOur support Web sites receive more than 200 million customer visits annually, and provide a rich set of self-help tools and content tailored to specific customer segments and needs. \nCustomer Feedback \nAnother way we are supporting customers is by using feedback to improve customer experiences with our new error reporting tools. This lets customers choose to send us an error report whenever anything goes wrong with a Microsoft application or operating system, which helps us gather real-world data about the causes of customers’ problems. Error reporting is now built into Office, Windows, and most of our other major products. \nOne thing we’ve learned from these error reports is that about 20 percent of software bugs cause 80 percent of all errors. Even more incredible, 1 percent of the bugs cause half of all errors. Knowing this allows us to prioritize debugging work on our software to achieve the biggest improvements for customers in the least time. \nPage 10 Microsoft Citizenship Report Partnering with Customers ", "(SPOT)—Smart technology that \nmakes everyday devices such as \nwatches, key chains, and alarm clocks \nmore useful by enabling them to \ndeliver a wide range of personalized \ninformation, such as news, traffic \nreports, stock quotes, weather infor\nmation, and instant messages ", "Peter Dickinson, Director of Information Technology, Mercy Corps \nOur goal is to truly empower people and communities, by making sure they have the tools, skills, and resources to overcome not only today’s challenges, but also those that will arise in the future. \nMicrosoft Employee Giving \nIn the United States, Microsoft matches each employee’s donation dollar-fordollar up to $12,000 annually, which gives them the opportunity to direct corporate contributions to thousands of nonprofit organizations. In fiscal year 2002, Microsoft employee donations and matching corporate funds totaled more than $28.5 million in cash in the United States alone. \nAt Microsoft, we’ve always believed in sharing our success. Our giving efforts—as a company and as individuals—are part of how we help support and strengthen our communities every day. \nPartners in Learning \nBy partnering with governments around the world, Microsoft is offering a spectrum of education resources—tools, programs, and practices— to empower students and teachers to realize their full potential. The essential premise of this ambitious five-year undertaking is simple, yet compelling: education changes lives, families, communities and, ultimately, nations. Microsoft is focusing global resources—people, partnerships, services, philanthropy, and products—to increase access to technology and technology education. \nThe Partners in Learning initiative includes three distinct yet integrated core programs, each of which can be implemented in the participating countries based on economic and educational objectives as well as cultural preferences. The programs are: ", "Microsoft’s mission is to enable people and businesses throughout the world to realize their full potential. It is grounded in six core values that are the foundation of our business, and expresses our conviction that it takes more than great products to make a great company. We believe that our mission, although ambitious, is achievable. But we also know that we can’t do it alone. \nOur business is built on relationships—with our customers, partners, investors, and employees, and with the many countries and communities around the world where we live and work. These relationships are crucial to us, and they depend on the choices we make and the actions we take every day—as a company and as individuals. We are committed to keeping those relationships strong and healthy by communicating openly about our business practices, being transparent about our performance, and remaining accountable for our conduct. \nAs Microsoft has grown as a company, we have learned a lot about what it takes to build trust and keep it, to earn respect and return it, and to create the kind of business environment that inspires successful partnerships and collaboration. We know that our decisions have significant ramifications for other companies, and for people and communities worldwide. We take that responsibility very seriously. \nGlobal citizenship, like the rest of our business, is a work in progress. This overview simply provides a snapshot of where we stand today, because every program and activity highlighted here is active and ongoing. We look forward to continuing to make a lasting difference in the lives we touch and the communities where we do business, and to empowering more people who—because of age, geography, physical disability, or economic barriers— could not otherwise reap the benefits of technology. We also aim to do even more to deliver the best value for our customers and partners; to increase our transparency as a company; to make the Internet a safe and trustworthy environment for everyone; to limit our environmental impact and conserve natural resources; and to provide an outstanding work environment for our employees. \nWe are unceasingly optimistic about the future of technology and the positive things it can do for people worldwide. And while we’re proud of what we’ve accomplished, we’re even more excited about the opportunities that lie ahead for our company and, in partnership with others, for the global community. \nChief Executive Officer Chairman and Chief Software Architect \nPage 02 Microsoft Citizenship Report Company Overview ", "We’re doing more industry outreach, forming more alliances, and working more closely with governments. Emerging problems like security and identity theft are too big and complex for either industry or government to solve alone. We need more public/ private alliances to address these challenges, which will help the technology industry to continue to drive global economic growth. \nIt comes down to this: Microsoft is totally committed to working with our partners and developers to provide innovative technologies that will continue to empower people worldwide and transform the way we live, work, and learn. \nCreating New Opportunity for Developers and Partners \nDevelopers are the foundation of our business—our most critical audience and our greatest asset. \nMicrosoft has always had a healthy, interdependent relationship with software developers. Our first products were PC programming languages, so we have deep roots in the developer community. From the beginning, the idea behind the Microsoft business model has been that we ensure our own success by attracting developers to our platform and doing whatever we can to help them succeed. \nThe success of Windows is due in no small part to the creativity and innovation of developers who write programs that run on the Windows platform. Our ability to attract developers can be attributed largely to our decision to make our application programming interfaces (APIs) available to all developers, even potential competitors. Our open-API model allows developers to call features of the Windows operating system into their own programs, which eliminates the need to create those features from scratch, saves time and money, and makes their applications run efficiently. \nAs a result of these APIs, plus the tools and support we provide, more developers—approximately 7 million worldwide—write software for the Windows platform, which in turn makes it the most compelling platform for users. Today, using XML and Microsoft .NET technologies, we’re making it just as easy for developers to write rich, interconnected Web services as it is to write traditional applications and Web sites—a change that is creating exciting new opportunities for developers. ", "H5\nP_0", "Codes of Conduct \nMicrosoft’s Standards of Business Conduct apply to all our employees, and set clear guidelines for them to follow when they are conducting business on behalf of the company. Every employee receives training to acquaint them with these standards and the company’s high expectations. \nWe also have codes of professional conduct that apply specifically to employees who are engaged in certain types of business activities. For example, the Procurement Code of Professional Conduct applies to anyone at Microsoft who is involved in procurement or supply-chain management activities, such as negotiating contracts, managing vendor relationships, and monitoring service delivery. \nAnother code of professional conduct applies to employees who work in Microsoft Finance and manage the company’s financial affairs worldwide. Employees of our finance organization hold an important and elevated role in corporate governance, because they are uniquely empowered to ensure that all stakeholders’ interests are appropriately balanced, protected, and preserved. The Finance Code of Professional Conduct sets out principles and rules regarding individual and peer responsibilities, as well as responsibilities to fellow employees, the public, and other stakeholders. If you have a concern regarding a questionable accounting or auditing matter and wish to submit the concern confidentially or anonymously, you may do so by sending an e-mail, calling the Business Conduct Line, or sending a letter or fax to the director of compliance as outlined above. \nVendor Code of Conduct \nAs part of our commitment to provide a positive work environment at Microsoft, we require our vendors and their representatives to adhere to the same professional standards of behavior that we expect from our employees. The Microsoft Vendor Code of Conduct covers everything from harassment to the use of e-mail and online resources, and makes it clear that we expect our vendors to share our support of cultural and ethnic diversity, and our equal opportunity employment policies. Partners, customers, or others outside the company who have concerns about Microsoft’s procurement practices should contact the director of compliance. For information on our procurement practices and policies, please visit www.microsoft.com/ mscorp/procurement/process/ contracting.asp. ", "Microsoft Employee Development and Support \nWe strive to provide our employees with the skills, tools, and experiences that will enable them to unleash their talents and capabilities. Professional development is an ongoing part of every employee’s experience at Microsoft. It includes mentoring, training, online tools and resources, and special programs to develop managers and our next generation of leaders. \nWe also recognize the importance of personal and family support in our employees’ lives, and we offer opportunities for employees and their families to socialize and enjoy a wide variety of community events. We designed our benefits plan to keep our employees healthy, happy, and moving ahead in their careers. We provide a range of healthcare options, personal and professional resources, and financial incentives. \nOur Commitment to Diversity \nMicrosoft has established a number of initiatives to ensure that diversity is an integral and valued part of our company at every level, and to demonstrate this commitment locally, nationally, and globally. For example: \n• Diversity Recruitment—We are committed to creating a workforce that reflects the global marketplace. In the past six years, we have spent more than $125 million to reach this goal. Our recruiting efforts, in partnership with 33 historically diverse colleges, encourage underrepresented minorities and women to become the next generation of technology leaders. Since 1997, Microsoft has given cash and software in support of organizations such as the United Negro College Fund, Native American Colleges and Universities, Hispanic Scholarship Fund, American Association of People with Disabilities, ", "Partners + Developers \nCommunity \nEnvironment \nEmployees \n2003 ", "The Journey So Far \nIn 1975, most people had never heard of personal computers. You couldn’t even buy one—unless you wanted to buy a kit and build it yourself. Collaborating with co-workers meant poring over photocopies or, worse, carbon copies of documents. And for communication, we relied entirely on telephones or the mail. \nMicrosoft co-founders Bill Gates and Paul Allen saw the potential to turn a hobbyist’s toy into something more. They wrote a version of the BASIC software language that would work on the first “personal computer,” the MITS Altair 8800. Microsoft® BASIC, and the many software programs that soon followed from our developers and partners, helped spark a worldwide technology revolution that has transformed the way people live, work, learn, and are entertained. \nBill’s and Paul’s early vision of a computer on every desk and in every home seemed like a fantasy to most people when the two friends founded what was then called Micro-Soft. Today, it’s almost a reality. More than 1 billion personal computers have now been sold around the world, along with billions of other digital devices, all able to share information in amazing ways. \nPage 04 Microsoft Citizenship Report Company Overview ", "H3_16\nP_42", "Page 28 Microsoft Citizenship Report Managing Environmental Impact \nPurchasing, Packaging, and Products \nAt Microsoft, we follow strict policies to ensure that we remain in full compliance with international environmental regulations and the environmental requirements of each country where we do business. All Microsoft divisions have specific responsibilities for compliance, as do our vendors. \nWe extend our environmental efforts by the use of recycled office products, as well as recycled paper in Microsoft brochures, software manuals, and other publications. We also purchase and use many new products that contain recycled content. Our environmental principles are an important component of our buying decisions, and we believe the same is true for our customers. \nPackaging for our hardware and software products is also designed to reduce environmental impact, including the elimination of plastic shrink-wrap ", "P_55\nH3_23\nP_56\nSect_25", "We are focused on delivering great value to our customers and giving them an outstanding customer experience, based on exceptional service and state-of-the-art technical support. Our ability to achieve this depends on how we interact and engage with our customers, how we team up with partners to deliver great solutions, and how well our business groups collaborate to provide software and solutions that help our customers realize their potential. \nThe key is to continually strengthen our relationships with customers— from individual home users to the largest multinational corporations— and to ensure that their voices are heard and heeded in every aspect of our business. \nListening to Our Customers \nEvery year at Microsoft we conduct a comprehensive survey called the Microsoft Worldwide Customer and Partner Satisfaction Study. Our most recent study resulted in more than 30,000 completed customer and partner interviews in 70 locations around the world. As part of our commitment to be a highly customer-focused company, we make this information available to Microsoft employees worldwide through the Microsoft Customer Satisfaction Dashboard—a simple but powerful tool ", "Steve Ballmer, CEO, Microsoft Corporation \nto help employees access customer satisfaction data and see for themselves what feedback our customers have on our products, services, and business policies. \nThe Microsoft Customer Satisfaction Dashboard is unique in our industry and an important breakthrough for our company, but it is only one part of our larger vision to bring the voices of our customers directly into Microsoft. In all of our contacts with customers—from sales and support services to focus groups and usability studies—we strive to strengthen the connection between our customers \nand employees. Our goal is make sure the feedback we hear from customers is factored into all of our products and programs, and into the business decisions we make every day. ", "Spam \nUnsolicited commercial e-mail, or spam, is a growing problem. Several billion junk e-mails—many of them deceptive or pornographic—are sent over the Internet every day, frustrating consumers and law enforcement officials alike. Thanks to technology such as MSN 8 from Microsoft, the spam that lands in inboxes today is a fraction of all that is sent. At MSN, messages are filtered twice, first by filters on e-mail servers and then again as subscribers use MSN 8 software. The MSN 8 filter becomes more effective as it learns the characteristics of mail that a subscriber designates as junk. \nIntellectual Property \nAround the world, copyright and patent laws play a central role in fostering a diversity of cultural resources, and in promoting technological advances and economic growth. These laws are more important than ever in a global economy. ", "P_30", "Since its inception, the world’s information technology sector has relied on strong intellectual property protection as the basis for creating sustainable and innovative businesses. The IT industry’s reliance on such protection is not unique. In fact, the industry shares a lot in common with other research-intensive industries, such as the consumer electronics, automotive, pharmaceutical, and biotechnology industries. The fact that the IT industry creates digital goods, which are more susceptible to copying, makes intellectual property laws particularly important in this sector. \nInternational treaties and national laws generally provide a solid foundation for the protection of intellectual property. High levels of piracy continue to exist in many areas, however, because those laws are not adequately enforced. The software industry alone loses $11 billion annually to piracy. Microsoft works with industry and governments worldwide to promote understanding of the importance of intellectual property laws and their improved enforcement. \nDigital Rights Management \nConsumers are eager to access entertainment products and other digital content over the Internet, but producers of that content are understandably concerned about its susceptibility to piracy. Microsoft continues to be a leader in developing new digital rights management (DRM) technologies that can be used to deliver digital content and safeguard it against unauthorized use. Typically, DRM encrypts digital content and limits access to people who have acquired a proper license to play that content. In addition to creating our own DRM system for Windows Media® Player and integrating those features into Windows Server 2003 and the new version of Office, Microsoft is working with other industry leaders to promote a more secure online environment that will encourage content owners to make more available and provide consumers with exciting new choices. ", "Microsoft Global Community Affairs \nIn 1983, Microsoft established one of the first corporate giving programs in the high-tech industry. Today, we have been recognized as one of the top contributors in the technology sector, and one of the five largest contributors among all businesses in the United States. At Microsoft, we aim our giving programs at the heart of serious challenges. \nIn the United States, we have worked in partnership with Boys amp; Girls Clubs of America to develop Club Tech. Together we are bringing technology access and skills to children at all 2,600 clubs in communities throughout the United States, and at U.S. government facilities in other countries. \nAlong with contributions to many individual organizations, we provided the primary support to create NPower, a national U.S. network of community-based groups that works with nonprofits to develop affordable technology solutions. For instance, one NPower project uses the Internet to link a community’s resources for the deaf, so that each request can be quickly matched to an available interpreter. As a result, information once placed on index cards is now accessible to all staff at any time. ", "Unlimited Potential \nTechnology is a potent force that can empower millions of people to reach their goals and realize their dreams— but for many people around the world, the “Digital Divide” keeps that power out of reach. In many developing countries, for example, less than 1 percent of the population has Internet access. In some of the poorest countries, the cost of establishing an Internet connection could feed a family for a year. Access to technology is only part of the answer, however. It is equally critical to provide IT skills training and guidance to help people discover what technology can do for them, and what they can do with technology. \nIn 2003, Microsoft refocused its giving initiatives to promote computer literacy and foster lifelong learning among underserved young people and adults worldwide. Our goal with this program, called Unlimited Potential (UP), is to go beyond merely providing access to technology, by combining enhanced access with much-needed curriculum and the development of IT skills that people need to transform technology into powerful tools for change. UP achieves its goal in three ways: First, we support existing learning centers—such as libraries, schools, and community centers—where people already gather to gain skills, share information, and use technology. Second, we offer those locations ongoing access to a rich set of resources that can help them become sustainable technology-enabled centers of lifelong learning and collaboration. Finally, through a program of cash awards and recognition, we support scalable technology solutions that provide social benefits in communities worldwide. \nBy focusing our resources on Microsoft UP, we hope to empower many of the world’s disadvantaged people to help themselves, strengthen their communities, and improve their local economies. ", "Recycling and Conservation at Our Facilities \nMicrosoft has several programs in place at our facilities that allow us to significantly reduce waste and conserve resources. Examples include: \nEach day at our corporate campus in Redmond, Washington, we recycle an average of 24 tons of material: glass, plastic, aluminum, cardboard, paper, organic waste, wood pallets, and copper wire cabling. To date, paper and cardboard recycling at Microsoft has saved more than 26,000 trees. \nRecycling containers for paper, aluminum cans, and polystyrene are conveniently located for employees throughout our facilities. As a result of this and other programs, we’re able to recycle 36 percent of our solid waste. In fiscal year 2001, employees at our Seattle-area facilities alone reduced waste by more than 70 percent, recycling and reusing more than 7,060 tons of material that otherwise would have ended up as landfill. ", "P_53", "We work with a contractor to recycle our old PCs, monitors, servers, and other surplus technology from our office facilities. This ensures that our surplus equipment is recovered or recycled at an environmentally compliant facility. Approximately 90,000 technology assets are processed each year, representing 2,100 tons of equipment sold or demanufactured that did not end up in landfills— enough to fill more than 1,000 semitrailer trucks. \nAn advanced irrigation management system at our corporate campus automatically senses weather conditions and replenishes the right amount of water, which saves approximately 11 million gallons of water \nannually. This conservation activity supports other uses for water resources in our area, such as water for salmon \nin our local rivers.", "Our mission—to enable people and businesses throughout the world to realize their full potential—begins by enabling our own employees to realize their potential. Our ability to achieve our corporate mission depends on the individual decisions and actions of every Microsoft employee around the world, each of whom shares Microsoft’s core values and lives them every day. \nEqual Employment, Anti-harassment, and Anti-discrimination Policies \nMicrosoft is committed to a policy of providing equal employment opportunity to all qualified employees and applicants. This commitment is reflected in all aspects of our daily operations. We do not discriminate on the basis of race, color, sex, sexual orientation, religion, national origin, marital status, age, disability, or veteran status in any personnel practice, including recruitment, hiring, training, compensation, promotion, and discipline. \nWe prohibit harassment, discrimination, retaliation, or intimidation on the basis of race, color, sex, sexual orientation, religion, national origin, marital status, age, disability, or veteran status toward another employee or any other person (including an agency temporary, independent contractor, vendor, or supplier). ", "Steve Ballmer, CEO, Microsoft Corporation _0\nMicrosoft is also working on accessibility issues with the U.S. government and other technology industry leaders. For example, Section 508 of the Rehabilitation Act, which took effect in June 2001, requires all federal agencies to ensure that any electronic or information technology they develop, procure, maintain, or use is accessible to people with disabilities. Microsoft is fully engaged in Section 508, working closely with federal IT managers and industry leaders to help government agencies comply with the new regulations, and providing the tools other companies need to develop accessible technologies that meet the federal standards. \nWe have received numerous awards for the accessibility of Microsoft products and our work on accessibility issues, including: ", "Microsoft Research University Relations \nMicrosoft Research University Relations is committed to supporting all aspects of the worldwide university computing environment. Its mission is to build world-class relationships with key universities, government agencies, and industry partners that enhance the teaching and learning experience, inspire innovation, and establish Microsoft as a leading technology partner for higher education. \nWe take our responsibility to the international academic community very seriously. We contribute more than $75 million a year in cash and software to academic institutions around the world, and we’re making more software available for teaching and research. For example, last year we announced an academic version of Visual Studio® .NET to make it easy for university faculty and students to begin using Microsoft .NET technologies in the classroom. We also partner globally with academic institutions on curriculum development. ", "P_41", "Microsoft is a neighbor in more than 80 countries and in nearly every \nU.S. state and territory. Being good neighbors and contributing to the communities where we live and work is a fundamental part of the Microsoft culture. In fiscal year 2002 alone, Microsoft gave nearly $40 million in cash and $207 million in software to more than 5,000 nonprofit organizations that work to improve lives, build technology skills, and strengthen communities worldwide. \nPart of our ongoing commitment to the many communities where we do business is to partner with nonprofit organizations that work with underserved people and communities—sharing resources, innovative technology and ideas that can help counter the world’s most serious problems, awaken people to their own potential, and empower them to achieve it. ", "Chairman / CEO Introduction \np. 01 ", "Partnering with Customers \np. 06 ", "Responsible Leadership \np. 14 ", "Strengthening Communities \np. 20 ", "Managing Environmental Impact \np. 26 ", "Employees _0\np. 30 ", "We’re finding new and creative ways to support industry cooperation, especially around technology standards like XML (eXtensible Markup Language), which has become the new lingua franca for how computers talk to each other. And we’re collaborating more closely than ever with others in our industry, including our competitors, to enhance those standards so that everyone can use them to create innovative, easy-to-use software. For example, last year Microsoft and a broad coalition of other industry leaders formed the Web Services Interoperability (WS-I) Organization to promote Web services interoperability across a variety of platforms, operating systems, and programming languages. To learn more about WS-I, please visit www.ws-i.org. \nAs part of our renewed commitment to our customers, partners, and developers, we have built new leadership teams for each of our businesses and increased leadership accountability throughout our company, while also expanding and nurturing our next generation of leaders. Along with creating this new management structure at Microsoft, we reaffirmed our core values and made living up to them a part of every employee’s performance review. ", "Roxanne Spillett, President, Boys amp; Girls Clubs of America \nPage 22 Microsoft Citizenship Report Strengthening Communities ", "H5_4\nP_51", "with local community organizations, \nThe MAR program donates software ", "education institutions, and training \nlicenses through nonprofit refur", "providers. The Centers will train \nbishers, enabling schools and charities ", "educators, build communities, and \nto take full advantage of personal ", "deliver locally tailored curriculum \ncomputers they receive from donors. ", "and certifications. In addition, learn-\nBefore Microsoft established the ", "ing grants will provide incentives \nprogram, many of those donated ", "for teacher and student participation, \nmachines lacked installed operating ", "recognition programs for schools, \nsystems. ", "P_57", "from Microsoft packages and software manuals, promoting the use of compact discs (CDs) for computer programs, and using online paperless manuals. We also prohibit the use of old-growth trees in our packaging. \nWe design our products, both software and hardware, to comply with worldwide environmental regulations. For example, we use no heavy metals, such as lead and cadmium, in the packaging or plastics of any Microsoft products. Our hardware products are designed with consideration of the environment in mind, and we restrict the use of toxic substances in manufacturing operations. Microsoft contracts out for manufacturing throughout the world, and we encourage our vendors to follow good environmental practices. ", "M ", "Citizenship Report ", "Customers ", "H5_0", "Your potential. Our passion.™ ", "Company Overview ", "p. 02 ", "Part 1: ", "Part 2: ", "Part 3: ", "Part 4: ", "Part 5: ", "Additional copies of this report can be ordered by sending e-mail to csr@microsoft.com. An online version is also available for download at www.microsoft.com/mscorp/citizenship. ", "We see this report as an opportunity to share how we view our roles and responsibilities as a global industry leader and corporate citizen, and to enhance our communication with our many stakeholders about the ways we fulfill them. In this overview, you may discover things you never knew about Microsoft—from how we create innovative new technologies to how we empower people who have disabilities, and from how we support and advance open technology standards to how we strengthen communities worldwide. ", "Microsoft is still a young, innovative company in an extremely dynamic industry. We’ve come a long way in a short time, but the global business environment in which we operate is evolving rapidly, too. Companies worldwide are being challenged in new ways—not only to offer better products and services, but also to enhance their corporate governance and provide greater transparency in how they conduct their business. At Microsoft, we have made changes in our organization that are designed to provide better customer service, create more opportunities for partners, and enhance our contributions as a responsible industry leader. ", "Information Worker, including Microsoft Office, Microsoft Publisher, Microsoft Visio®, Microsoft Project, and other stand-alone desktop applications ", "Business Solutions, encompassing Great Plains® and Navision® business process applications, and bCentral™ business services ", "Server Platforms, including the Microsoft Windows Server™ System integrated server software, software developer tools, and MSDN® ", "Mobile and Embedded Devices, ", "including the Pocket PC, the Mobile Explorer microbrowser, and the Smartphone software platform ", "MSN®, including the MSN network, MSN Internet Access, MSN TV, MSN Hotmail®, and other Web-based services ", "Home amp; Entertainment, including Microsoft Xbox®, consumer hardware and software, online games, and our TV platform ", "Partnering with Our Customers, Investing in Their Future ", "At Microsoft, we’re motivated and inspired every ", "H3_2", "Part 1 ", "day by how our customers use our software—finding creative solutions to business problems, developing breakthrough ideas, and staying connected to the people and information that are most important to them. ", "“ Microsoft is 100 percent committed to delivering new opportunities for our partners and enabling them to realize their potential. Our $500 million investment in partner programs and services underscores our commitment to partner satisfaction, and our focus on delivering the strongest technology platform through Microsoft .NET and XML Web services.” ", "“ In less than 10 years technology will virtually eliminate most limitations people with disabilities face in the workplace ", "Case studies and other information are available at: ", "H6", "www.microsoft.com/enable ", "and the classroom.” ", "The World Blind Union’s Louis Braille Gold Medal, for Microsoft Canada’s contribution to helping develop a digital library system for the Canadian National Institute for the Blind ", "WE Magazine’s Golden Ladder Award, ", "for hiring and accommodating people with disabilities, and for our continued commitment to creating accessible technologies ", "The Ron Mace “Designing for the 21st Century” Award, for making Windows and our other software accessible to the broadest range of customers, including people with disabilities ", "The Disability Rights Advocates “Eagle” Award, for spearheading the “Able to Work” Program, which endeavors to employ increasing numbers of people with disabilities ", "Glenn Higgins has been quadriplegic since he was 17, when he was injured in a wrestling accident. Today, 37 years later, he holds a Ph.D. in neuropsychology and serves as vice president and medical director for UnumProvident, a $9.6 billion provider of disability insurance. Dr. Higgins succeeds in his high-level job through a combination of talent, hard work, and technology. His tools include a personal computer equipped with speech-recognition software and a puff-stick, which resembles a drinking straw but operates like a mouse when he blows into it. ", "Microsoft will not transfer your personal information to third parties without your consent. ", "We believe that you should be able to exercise control over how your personal information will be used. We also believe that you should be able to access the personal information you have provided, so that you can update, correct, or amend the data. ", "“ Microsoft has a responsibility, as a corporate citizen, to participate in the global dialogue on public policy issues.” ", "Pamela Passman, Deputy General Counsel, Corporate and Regulatory Affairs, Microsoft Corporation ", "Responsible Leadership ", "As a global industry leader, Microsoft recognizes its", "H3_9", "Part 2 ", "responsibility to set and maintain exceptionally high standards of product quality and support, and to deliver excellent customer service. Our customers and partners expect this of us, and we demand it of ourselves. ", "“ At the end of the day, our job is not done unless we have provided great opportunities for others to build world-class software, and helped make them successful in building it.” ", "Tablet PC—Handwriting-recognition technology that converts handwriting to digital text, digital ink technology that enables users to write on the Tablet as they would on paper, and ClearType® font technology that makes it easier to read on-screen text ", "MSN 8—Spam control filters that offer a vast improvement over previous versions and enable the industry’s best tools to combat spam ", "Windows XP—Advanced multimedia technologies that enable more secure, reliable streaming transmissions and audio quality, improved search capabilities, and encryption and anti-piracy tools that make Windows XP the most secure Microsoft operating system to date ", "Smart Personal Objects Technology ", "Strengthening Communities Worldwide ", "At Microsoft, we know that amazing things happen when ", "H3_13", "Part 3 ", "people have access to the right resources to help them pursue their dreams. We’ve seen it again and again as our company, our software, and our employees have made a lasting difference in hundreds of communities and thousands of lives around the world. ", "“ The Club Tech program with Microsoft is making possible the most significant innovations, improvements, ", "and programs in our history.” ", "“ Mercy Corps works in places that are often technologically primitive. Software from Microsoft provides Mercy Corps with the critical building blocks from which field staff can develop innovative technical solutions to local problems. That means we can help more people more effectively and efficiently.” ", "Microsoft works closely with international organizations such as the World Food Programme, Save the Children, and Mercy Corps to provide technology-based development assistance through the HEART (Humanitarian Empowerment and Response through Technology) program. More and more, global organizations rely on technology to improve the effectiveness of their humanitarian efforts around the world. ", "eElder in Japan is a program that offers thousands of often isolated senior citizens an opportunity to use technology and learn IT skills, making them part of the digital age. ", "In the Czech Republic, Microsoft is supporting a program designed to provide people with disabilities IT training that is tailored to their individual needs, helping them to secure jobs in the high-tech industry. ", "Partners in Learning Fresh Start for Donated PCs—Computers that are donated to schools often lack original documentation for the installed operating system. To remove licensing barriers that prevent schools from using donated computers, Fresh Start will provide primary and secondary schools with a licensed copy of Windows 98 and/or Windows 2000 for donated machines when original documentation is not available. ", "Partners in Learning: School Agree-ment—Microsoft School Agreement Subscription makes Microsoft’s core educational tools more affordable to primary and secondary schools in all countries worldwide through deeply discounted pricing. Schools with the greatest economic needs can acquire Windows XP Professional Upgrade and Office XP Professional at dramatically lower pricing. ", "Partners in Learning Grants ", "Learning grants provide cash investments over five years to help schools take advantage of their technology investments—by developing school leader and teacher skills, student certification, courseware, content, and research. Funding will support the establishment of local Microsoft IT Academy Centers through alliances ", "and digital literacy assessments to ", "encourage and reward participation. ", "Microsoft Authorized Recycling ", "Through a program called Microsoft ", "Authorized Recycling (MAR), we help ", "facilitate the refurbishing and recy", "cling of thousands of PCs every year ", "so that they can be donated to K–12 ", "schools and nonprofit organizations. ", "U.S. corporations and the federal ", "government retire more than 13 mil", "lion personal computers annually— ", "a number that is growing rapidly. ", "Approximately 20 percent (or 2.5 mil", "lion) of these machines are donated ", "to schools and charity organizations. ", "Managing Environmental Impact ", "Microsoft respects the environment and protects our natural", "H3_19", "Part 4 ", "resources. We comply with all laws and regulations regarding the use and preservation of our land, air, and water. And we have specific policies and procedures that conserve environmental resources at our facilities and in our purchasing activities, supplier operations, and products. ", "When new construction threatened to encroach on an area of wetlands, Microsoft responded by enhancing the site and making it publicly accessible as a habitat interpretive center. After initial restoration, the company donated part of the wetlands to the city of Redmond as an interpretive park, which local schoolchildren now use as part of their environmental curriculum. ", "Microsoft respects the environment and protects our natural ", "Microsoft has made energy conservation a priority, both in new construction and in renovations of existing buildings, investing in construction methods that provide long-term energy savings. Conservation methods implemented recently during construction of buildings on our corporate campus—from efficient lighting that consumes 40 percent less energy to adjustable-speed motors for our heating, ventilation, and air-conditioning systems—will result in electric energy savings of 2.5 million kWh each year. Over the past two years, we have reduced per-employee energy consumption at our Seattle-area facilities by nearly 10 percent. ", "“ As a global corporate citizen, Microsoft recognizes its environmental responsibility. Through our business operations, products, and partnerships we are continuing to work to help promote long-term sustainability of the global environment.” ", "Joe Johnson, Environmental Regulatory Manager, Microsoft Corporation ", "H2_3", "Employees ", "We employ more than 54,000 people in over 80 coun-", "H3_25", "Part 5 ", "tries. Our employees come from diverse backgrounds, but they share a common passion for exploring new ideas, overcoming challenges, and creating innovative software that can empower people to change their lives. ", "“ Diversity is important not only because it enriches the workplace and enhances the lives of our employees, but also because it enables Microsoft to better serve the needs of customers and communities.” ", "Steve Ballmer, CEO, Microsoft Corporation _1", "and others that serve diverse populations. We awarded scholarships totaling $540,000 to students traditionally underrepresented in computer science and related disciplines in the 2002–2003 academic year, and supported more than 19 premier recruitment events geared for candidates who were African American, Hispanic, Native American, women, or people with disabilities. ", "Diversity Outreach—Over the past five years our efforts, in partnership with universities such as Xavier, Howard, Texas at El Paso, the University of Puerto Rico, and other education-oriented organizations, have ensured that women, students with disabilities, and students of color have access to experiences and opportunities that yield personal and professional growth. Through an investment of more than $3.5 million, we have participated in conferences and career fairs, facilitated workshops, and supported the annual events of our partner minority and women’s professional organizations. ", "Support for Disability—In addition to our recruiting efforts, Microsoft has contributed $5.5 million to organizations that support people with disabilities. We wholeheartedly support the spirit of the Americans with Disabilities Act, providing grants to programs that address the technology needs of the disability community, or use technology to increase employment opportunities for people with disabilities. ", "Diversity Education Programs— ", "Microsoft’s diversity education programs provide our workforce with the tools and resources they need to ensure we take advantage of our employees’ differing backgrounds, work styles, and viewpoints. ", "Minority-and Women-Owned Businesses—Microsoft sponsors a variety of programs designed to help minority-and women-owned businesses succeed. Since its inception, the national award-winning Build Your Business Tour has provided, at no cost, educational technology seminars to the owners of more than 10,000 minority- and women-owned small businesses, while our supplier diversity effort is designed to encourage greater minority participation in the IT industry, through both increased procurement and direct investment. ", "Page 32 Microsoft Citizenship Report Employees " ]