《微软(MICROSOFT)2022年环境可持续发展报告(英文版)(81页).pdf》由会员分享,可在线阅读,更多相关《微软(MICROSOFT)2022年环境可持续发展报告(英文版)(81页).pdf(81页珍藏版)》请在三个皮匠报告上搜索。
1、2022 Environmental Sustainability ReportEnabling sustainability for our company,our customers,and the worldContentsOverview Foreword 42022 progress 7How we work 8About this report 9Microsoft sustainabilityCarbon Our approach 11Reducing Scope 1 and 2 emissions 15Reducing Scope 3 emissions 17Transitio
2、ning to carbon-free energy 20Removing carbon 22Key trends and whats next 24Water Our approach 26Reducing our water footprint 30Replenishing water 33Improving access to water 34Key trends and whats next 35Waste Our approach 37Reducing our waste footprint 41Key trends and whats next 44Ecosystems Our a
3、pproach 46Taking responsibility for our land footprint 48Key trends and whats next 50Customer sustainability Commitments and progress 53Microsoft Cloud for Sustainability 54Green software 56Sustainable devices 59Planetary Computer and AI for Good 63Global sustainability Commitments and progress 66Sc
4、ience and research 67Climate Innovation Fund 70Policy and advocacy 72Strategic partnerships 74Employee engagement and green skilling 76Appendix Appendix A How we report 79Appendix B Endnotes 801.4M We contracted 1,443,981 metric tons of carbon removal in FY22.12,159We diverted 12,159 metric tons of
5、solid waste from landfills and incinerators across our direct operational footprint in FY22.1MWe reached just under one million people with clean water and sanitation solutions by the end of the calendar year 2022.12,270In FY22,we protected 12,270 acres of land in Belize.Another 4,998 acres in the U
6、nited States is contracted.600MSince its inception,Microsoft has allocated over$600 million of impact investment capital from our Climate Innovation Fund.2|OverviewMicrosoft sustainabilityCarbonWaterWasteEcosystemsCustomer sustainabilityGlobal sustainabilityAppendixOverviewReviewing our 2022 progres
7、s and learningsWe are focused on new ways to harness the power of technology,partnerships,investments,and policy to drive impact at scale and pace to help the world protect ecosystems and biodiversity.Foreword 42022 progress 7How we work 8About this report 93|OverviewMicrosoft sustainabilityCarbonWa
8、terWasteEcosystemsCustomer sustainabilityGlobal sustainabilityAppendixForewordEnabling sustainability for our company,our customers,and the world2022 marked the sixth warmest year in history.Extreme weather caused devastating droughts,wildfires,famine,floods,and heat waves with alarming frequency.We
9、 felt the effects of climate change like never before,and as the planet warms,well continue to see and feel the negative impacts on ecosystems and communities around the world.The most recent report from the Intergovernmental Panel on Climate Change(IPCC)underscores the severity of the climate crisi
10、s,and the urgent need for global collective action.Meaningful climate action requires an enduring commitment from both government and business,with the private sector playing an increasingly important role in the transition from pledges to progress.As we reflect on the seriousness of the climate cri
11、sis,we have expanded our ambition to meet this urgent climate need by investing in a broad range of initiatives,technologies and approaches that support a net zero future.As we look toward 2030and beyondwe remain optimistic about our collective ability to decarbonize the global economy while continu
12、ing to grow and prosper as a global community.4|Melanie Nakagawa,Chief Sustainability Officer Brad Smith,Vice Chair and PresidentMicrosofts approach to addressing the climate crisis starts with the sustainability of our own business.In 2020,we made a bold set of commitments:to be a carbon negative,w
13、ater positive,zero waste company that protects ecosystemsall by 2030.Three years into this journey,we remain steadfast in our commitment.2022 was a reminder that to mitigate the most severe impacts of climate change,our commitments need to extend beyond our four walls,and we must continue to acceler
14、ate investments that will enable progress for decades to come.In 2022 we launched Microsoft Cloud for Sustainability,a comprehensive suite of enterprise-grade sustainability management tools.We also helped to advance a set of global sustainability initiatives that aim to benefit every person and org
15、anization on the planet.These include accelerating the availability of new climate technologies through our Climate Innovation Fund,strengthening our climate policy agenda,helping to develop a more reliable and interoperable carbon accounting system,advocating for skilling programs to expand the gre
16、en workforce,and working to enable a just transition for the vulnerable populations of the global south.We believe that Microsoft has an important role to play in developing and advancing new climate solutions,but also recognize that the climate crisis cant be solved by any single company,organizati
17、on,or government.The global community needs partnerships,new innovations,policies,and global commitment to ensure a healthy future for all.A closer look at 2022Getting our own house in orderMicrosofts own sustainability is our first sphere of influence,and we remain focused on getting our own house
18、in order and delivering on our 2030 commitments.We made ambitious commitments in 2020 and we knew that progress would not always be linear.These commitments are rooted in science and take the necessary steps to protect our ecosystems and prevent the most severe impacts of climate change.We are firml
19、y focused on achieving our 2030 commitments and making the right long-term investments that support the sustainability of our business for decades to come.In addition to our long-term focus,its important to pause and evaluate our progress in 2022.In 2022,our business grew by 18 percent and our overa
20、ll emissions declined by 0.5 percent.This in part is a result of a reduction in our direct operational(Scope 1 and 2)emissions by 22.7 percent.At Microsoft,Scope 1 and 2 emissions account for less than four percent of total emissions,while indirect emissions,or Scope 3,account for more than 96 perce
21、nt.Our Scope 3 reported emissions increased slightly in 2022,by 0.5 percent,despite a 25 percent increase in purchased goods and services due to business growth.The more positive outcomes in 2022 are the result of improvements in our operations,real-time device telemetry-based measurement,renewable
22、energy investments,sustainable aviation fuel(SAF)purchases,and procurement of unbundled renewable energy certificates(RECs).OverviewMicrosoft sustainabilityCarbonWaterWasteEcosystemsCustomer sustainabilityGlobal sustainabilityAppendixWhile we continue to work to reduce our Scope 1 and 2 emissions to
23、 near zero,Scope 3 is the ultimate decarbonization challenge.It necessitates the co-evolution of best practices for business,technology,and policy among thousands of global stakeholders.When we made our carbon negative commitment in 2020 it wasnt just a challenge to support the sustainability of our
24、 business,it was also an invitation to the world to participate in this journey,translating ingenuity into action,and action into impact.In addition to our carbon negative commitment,weve also made encouraging progress toward our 2030 commitments in water,waste,and ecosystems:Water positive We contr
25、acted for replenishment projects that are estimated to provide more than 15.6 million m3 in volumetric water benefits,increasing our running total of replenishment projects to 35 million m3.Additionally,we provided more than 850,000 people with access to clean water and sanitation solutions,includin
26、g 163,000 in Brazil,India,Indonesia,and Mexico.We are firmly focused on achieving our 2030 commitments and making the right long-term investments that support the sustainability of our business for decades to come.Zero waste We increased our reuse and recycle rates of all cloud hardware to 82 percen
27、t and continue to pace toward our 2030 reuse and recycle goal of 90 percent.We also reduced single-use plastics across all Microsoft packaging to 3.3 percent and are on track to eliminate their use by 2025.In total,we have diverted 12,159 metric tons of solid waste from landfills.Ecosystem protectio
28、n We continue to maintain our commitment to protect more land than we use.In 2022,12,000 of the over 17,000 acres of contracted land were officially designated as protected.The amount of land protected in 2022 exceeds the approximately 11,200 acres of land we currently use.Amplifying our impact and
29、helping our customers achieve more Our second sphere of influence is customer sustainability.As a technology company,we have a role to play with the thousands of corporate customers who put their trust in Microsoft technology.The majority of our customers have already made a climate pledge and Micro
30、soft is working to help them move from pledges to progress.While Microsofts emissions footprint is a tiny percentage of global emissions,we also have a role to play in helping reduce or remove the other 99.97 percent of global emissions.Its important that our approach to sustainability extends beyon
31、d our own four walls and supports the sustainability needs of our customers.Foreword(continued)Companies can only manage what they can measure,and Microsoft is committed to helping our customers measure their environmental impact in a timely and accurate manner.In June 2022,we launched Microsoft Clo
32、ud for Sustainability,a comprehensive environmental sustainability management platform that includes Microsoft Sustainability Manager.These new digital tools can interoperate with virtually any business system and unify data intelligence for organizations at any stage of their sustainability journey
33、.Sustainability Manager enables organizations to record,report,and reduce their Scope 1,2,and 3 emissions.Microsoft Azure customers also benefited from significant upgrades to the Emissions Impact Dashboard(EID),which helps customers to understand the emissions impact that results from their use of
34、the Microsoft Cloud.The EID estimates Microsofts direct and indirect emissions related to a customers cloud usage,as well as the emissions customers have avoided by running workloads in the cloud rather than on-premises.In 2022,we also released a preview version of the Microsoft Planetary Computer t
35、o enable customers to measure,monitor,and subsequently to manage ecosystems that may be affected by their operations,and to make important decisions related to climate risk.The Planetary Computer draws on more than 60 petabytes of open-source geospatial data.This data,when combined with the analytic
36、 capabilities of our AI for Good Lab,delivers a new level of planetary insights to corporations and governments around the world.Enabling and supporting a more sustainable worldFinally,our third sphere of influence is to impact global sustainability.Just as the reach of Microsoft technology extends
37、to almost every country in the world,so should the impact of our sustainability programs.In November 2022,the worlds climate leaders convened for COP27.There were important conversations at COP27 focused on the uneven impacts of climate change and how the least developed countries in the world are d
38、isproportionately affected.For example,the nations of Africa together account for less than 5 percent of global emissions but have experienced far more than their share of the negative impacts of climate change.At Microsoft,we are focused on climate policies and programs that will have a positive im
39、pact on all eight billion inhabitants of planet Earth.PolicyMicrosoft is deeply committed to using our voice to influence sustainability policies around the world.We support public policy initiatives to accelerate carbon reporting,reduction and removal,the transition to clean energy,water access and
40、 stress reduction,and the ability to measure,manage,and protect ecosystems.In 2022,we further committed to shaping public policy by releasing policy briefs on carbon and electricity.Carbon measurement and the Carbon CallIn February 2022,Microsoft,ClimateWorks Foundation,and over 20 leading organizat
41、ions launched an important new initiative called the Carbon Call.The objective of this program is to unify the world around a carbon accounting system that is more reliable and interoperable.ClimateWorks Foundation is building this program to a global scale.The Carbon Call now has over 80 signatorie
42、s,and released its initial roadmap at COP27.5|OverviewMicrosoft sustainabilityCarbonWaterWasteEcosystemsCustomer sustainabilityGlobal sustainabilityAppendixClimate Innovation FundWe believe that innovation is a critical component to solving the climate crisis,and that the investment of capital plays
43、 an important role in accelerating the availability of new solutions.Microsoft is investing in accelerating climate innovation through our$1 billion Climate Innovation Fund(CIF).We invest in innovative technologies and business models that have the potential for meaningful,measurable climate impact
44、by 2030.Since the founding of the CIF in 2020,Microsoft has allocated more than$600 million into a global portfolio of more than 50 investments,including sustainable solutions in energy,industrial,and natural systems.Africa data labIn November we announced an expansion of our AI for Good Lab into Eg
45、ypt and Kenya,building a new team of data scientists on the ground in Africa that will work to improve climate resilience.The work of these data labs will be informed by a new Africa AI Innovation Council comprised of representatives from leading African organizations.Sustainability skillsDelivering
46、 on the ambition of the Paris Agreement will require a global initiative focused on the proliferation of sustainability skills throughout the labor market.In November 2022,Microsoft and BCG released a new report,Closing the Sustainability Skills Gap:Helping Businesses Move from Pledges to Progress.T
47、his report reinforces the need for employers and governments to invest in upskilling the current workforce through learning initiatives focused on sustainability knowledge and skills,to prepare the next generation for sustainability jobs of the future.Microsoft is working with partners to develop an
48、d share new sustainability learning materials to accelerate the development of the sustainability workforce of the future.A decade of innovation and decisive action As we look toward 2030and beyondwe remain optimistic about our collective ability to decarbonize the global economy while continuing to
49、 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:1 Advancing AI solutions for greater climate impact.2 Accelerating the development of sustainability markets through inves
50、tment.3 Creating tools that advance emissions measurement and compliance.This will be a decade of innovation and decisive action,from expanding the use of AI to address sustainability to forging new public and private sector partnerships.To move from pledges to progress,we cannot be deterred by near
51、-term challenges,and must remain focused on developing innovative new solutions and in many cases,accelerating our actions.At Microsoft,were deeply committed to sustainability as a company,as a technology provider,and as citizens of planet Earth.Foreword(continued)The Microsoft Planetary Computer en
52、ables customers to measure,monitor,and manage ecosystems and make climate risk decisions.Brad SmithVice Chair and PresidentMelanie NakagawaChief Sustainability Officer6|OverviewMicrosoft sustainabilityCarbonWaterWasteEcosystemsCustomer sustainabilityGlobal sustainabilityAppendix2022 progressMicrosof
53、t Cloud for SustainabilityThe Microsoft Cloud for Sustainability data model centralizes emissions data from disparate sources in a shared data languagestreamlining data ingestion,integration,and calculations and enabling more accurate and reliable reporting.The Microsoft Cloud for Sustainability dat
54、a model initially focused on carbon and was expanded in 2022 to include water data.Advanced policyTo support our policy work,we published several briefs on carbon and electricity policy to share the priorities and principles that guide Microsofts policy advocacy work around the world.$600M in climat
55、e innovationSince its inception,Microsoft has allocated over$600 million impact investment capital from our Climate Innovation Fund into a global portfolio of investments,featuring sustainable solutions in energy,industrial,and natural systems.Sustainability skills gapTo better understand how to clo
56、se the sustainability skills gap,Microsoft published the Closing the Sustainability Skills Gap report and LinkedIn published the Green Skills Report to provide insights into the demand and supply of talent with green skills.Carbon1.4M metric tons We contracted 1,443,981 metric tons of carbon removal
57、 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.Water15.6M m3 In FY22,we contracted for replenishment projects that are estimated to provide more than 15.6 million m3 in volumetric water benefit over
58、the lifetime of these projects.Waste12,159 metric tons In FY22,we diverted 12,159 metric tons of solid waste from landfills and incinerators across our direct operational footprint.Ecosystems12,270 acres In FY22,we protected 12,270 acres of land in Belize.We now protect more than the 11,206 acres of
59、 land that we use.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.1M By the end of FY22,we provided more than 550,000 people with access to clean water an
60、d sanitation solutions in Brazil,India,Indonesia,and Mexico and reached just under one million people by the end of the calendar year 2022.82%Our reuse and recycle rates of servers and components across all cloud hardware reached 82 percent in FY22.Big game migration program Through the NFWF Western
61、 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.Scope 1&2 Our Scope 1 and 2(market-based)emissions remained proportional with business growth in
62、 FY22.Environmental 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.29%We reduced single-use plastics in our Microsoft product packaging by more than 29
63、percent,a decrease from 4.7 percent to 3.3 percent by weight(on average)of plastic per package in FY22.Protecting 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.7|OverviewMicrosoft sustainability
64、CarbonWaterWasteEcosystemsCustomer sustainabilityGlobal sustainabilityAppendixHow we workFor any organizations environmental sustainability journey,it is critical to set commitments,develop a strategy,and build an operational roadmapall while measuring progress and ensuring accountability.Weve learn
65、ed a lot over the last three years of Microsofts sustainability journey,and we hope that sharing our approach can help other organizations as they develop their own roadmap.1Set commitments based on science Sustainability science has been at the center of our commitments.In 2019,Microsoft took a ste
66、p 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 ne
67、gative,water positive,zero waste company by 2030.2Consider all positions of influence As a global technology leader,Microsoft has many opportunities to influenceas a customer,supplier,investor,employer,policy advocate,and innovation partner.We know it will take commitment across our entire value cha
68、in to reach our goals.We also focus on the larger impact that we can have with research,investments,innovation,strategic partnerships,policy,and advocacy.3Establish sustainability as part of culture At the heart of the Microsoft culture is the belief that for Microsoft to continue to do well,the wor
69、ld 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 planetand 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 t
70、he tone across all levels of our organization.4Make 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 c
71、hain on sustainability commitments and support our customers and partners by delivering capacity-building tools and solutions.5Ensure governance and accountability Governance and accountability are critical to ensure cross-company alignment and prioritization of sustainability commitments.At Microso
72、ft,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 ac
73、ross the company to govern our sustainability progress and priorities.6Report 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 thro
74、ugh 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 accou
75、nting,a more systematic approach to building a multidisciplinary workforce of sustainability experts,and the development of innovative technology solutions for our customers and partners.8|OverviewMicrosoft sustainabilityCarbonWaterWasteEcosystemsCustomer sustainabilityGlobal sustainabilityAppendixA
76、bout this reportWe think about Microsofts role in sustainability through three spheres of influence:Microsoft sustainability,customer sustainability,and global sustainability.Transparent and accountable reporting on progressA key principle of our work is transparency.This report,published annually,i
77、ncludes our strategy,progress against our goals,and key challenges and trends we see in this work.We also publish our environmental data,which is included in the separate Environmental Data Fact Sheet.Deloitte&Touche LLP performed a review relating to specified information within Section 1 of the En
78、vironmental Data Fact Sheet.Amplifying our impactMicrosoft sustainabilityMicrosoft sustainabilityTaking care of our own environmental footprintOur sustainability work starts with getting our own house in order.We are taking accountability for our operational footprint and are committed to sharing le
79、arnings,accelerating markets,scaling solutions,and being transparent about our progress.Customer sustainabilityCustomer sustainabilityDelivering digital technology for net zeroWe are committed to providing the digital technology needed to help build a more sustainable world.We are delivering technol
80、ogy to help organizations measure and manage their environmental footprints and monitor the health of the planets natural ecosystems.Global sustainability 9|Global sustainabilityEnabling a more sustainable worldWe understand that our actions alone will not solve the climate crisis.As a global techno
81、logy leader,we are also committed to helping build the enabling societal conditions that will support a net zero economy.OverviewMicrosoft sustainabilityCarbonWaterWasteEcosystemsCustomer sustainabilityGlobal sustainabilityAppendixRead about how we report in Appendix AMore on page 10More on page 52M
82、ore on page 65Microsoft sustainabilityTaking care of our own environmental footprintOur sustainability work starts with taking accountability for our operational footprint.In 2020,Microsoft made industry-leading commitments to be carbon negative,water positive,and zero waste by 2030,and to protect m
83、ore land than we use by 2025.This means taking accountability for our operational footprint across our campuses,datacenters,devices,software,and value chain.We look at our operations across the entire lifecycle of assets and products,from design to building,usage,and end of life.We are committed to
84、sharing our learnings,accelerating markets,scaling solutions across our value chain,and being transparent about our progress.Carbon Our approach 11Reducing Scope 1 and 2 emissions 15Reducing Scope 3 emissions 17Transitioning to carbon-free energy 20Removing carbon 22Key trends and whats next 24Water
85、 Our approach 26Reducing our water footprint 30Replenishing water 33Improving access to water 34Key trends and whats next 35Waste Our approach 37Reducing our waste footprint 41Key trends and whats next 44Ecosystems Our approach 46Taking responsibility for our land footprint 48 Key trends and whats n
86、ext 5010|OverviewMicrosoft sustainabilityCarbonWaterWasteEcosystemsCustomer sustainabilityGlobal sustainabilityAppendixGetting to carbon negativeCarbon Reducing Scope 1 and 2 emissions 15Reducing Scope 3 emissions 17Transitioning to carbon-free energy 20Removing carbon 22Key trends and whats next 24
87、 Our approach In January 2020,Microsoft committed to be carbon negative by 2030.Operationally,we see this commitment as a journey that starts with reducing carbon emissions as much as possible,replacing our electricity consumption with carbon-free energy,and removing the emissions that remain.In FY2
88、2,our business grew by 18 percent and our overall emissions were down 0.5 percent.Our total company emissions were just under 13 million metric tons of carbon dioxide equivalents(mtCO2e)(market-based and management-defined criteria for Scope 3 Category 11).Taking into account our renewable energy pu
89、rchases,our Scope 1 and 2 emissions were approximately 428,000 mtCO2e.More than 96 percent of our emissions are in Scope 3,which includes emissions from our supply chain,the lifecycle of our hardware and devices,travel,and other indirect sources.We saw a 0.5 percent increase in our Scope 3 emissions
90、 this year based on investments in real-time device telemetry-based measurement,improvements in our operations and supply chain,and purchases of renewable energy.As the world transitions to a lower-carbon,clean energy economy,were using our purchasing and investing power to help advance innovation a
91、nd the development of new solutionshelping us meet our own commitments while catalyzing the creation of broader market supply for others.We fund purchases of renewable energy,sustainable aviation fuel,and carbon removal through our internal carbon fee,which we established in 2012.The fee is designed
92、 to accelerate carbon reduction and allocate funding to projects that jumpstart and scale decarbonization technologies.In FY22,we redesigned and increased our carbon fee to accelerate Scope 3 emissions reduction,tying the fee to the costs abatement for different sourceselectricity,fuel,and other emi
93、ssions.We will continue to evaluate the carbon fee design to align our business operations and 2030 carbon commitments.In 2022,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.We hav
94、e revised FY20 and FY21 Scope 2 and Scope 3 Category 3 market and location values to include this additional information.In FY22,we included this activity in our results and procured unbundled renewable energy credits(RECs)to mitigate the increased emissions for FY22.Our year-over-year figures show
95、a 23 percent reduction in Scope 1 and 2 market-based emissions,which is driven in part by our procurement of RECs for FY22.Without this revision,our Scope 1 and 2 market-based emissions would have remained proportional with business growth.13.5 GW In FY22,we signed new power purchase agreements arou
96、nd the globe,bringing our total portfolio of carbon-free energy to over 13.5 GW.11|OverviewMicrosoft sustainabilityCarbonWaterWasteEcosystemsCustomer sustainabilityGlobal sustainabilityAppendixCommitments and progressCarbon negative by 2030 We are committed to being carbon negative by 2030 and by 20
97、50 remove from the atmosphere an equivalent amount of all the carbon dioxide our company has emitted either directly or by our electricity consumption since we were founded in 1975.Our commitmentReducing direct emissions We will reduce our Scope 1 and 2 emissions to near zero by increasing energy ef
98、ficiency,decarbonization,and reaching 100 percent renewable energy by 2025.Reducing value chain emissions By 2030,we will reduce our Scope 3 emissions by more than half from a 2020 baseline.Replacing with 100/100/0 carbon-free energy By 2030,100 percent of our electricity consumption will be matched
99、 by zero carbon energy purchases 100 percent of the time.Removing the rest of our emissions By 2030,Microsoft will remove more carbon than it emits.By 2050,we will remove an amount of carbon equivalent to all our historical emissions.Our progressNet zero Scope 1 and 2 emissions Our Scope 1 and 21 em
100、issions remained proportional with business growth in FY22.2 More than 95 percent of our Scope 2 emissions were reduced by renewable energy from power purchase agreements(PPAs),green tariff programs,and unbundled renewable energy certificates.Scope 3 emissions increased by 0.5 percent Our value chai
101、n 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 proc
102、urement of unbundled renewable energy certificates(RECs).313.5 GW of carbon-free energy In FY22,we signed new Power Purchase Agreements(PPAs)around the globe,bringing our total portfolio of carbon-free energy to over 13.5 GW,including more than 135 projects in 16 countries.Over 1.4M metric tons of c
103、arbon removal We contracted 1,443,981 metric tons of carbon removal in FY22.We also made first-of-their-kind multi-year forward offtake commitments to carbon removal,which we view as the model for scaling the industry.Other achievements10th year of CDP A List for Climate ChangeMicrosoft was named to
104、 the CDP A List for Climate Change for the 10th consecutive year.Carbon fee redesignWe redesigned our carbon fee,tying it to the costs of abatement of electricity,travel,and other emissions sources.12|OverviewMicrosoft sustainabilityCarbonWaterWasteEcosystemsCustomer sustainabilityGlobal sustainabil
105、ityAppendixScope 1ACurrentyearBaseyearMetric tons CO2e Scope 2BScope 3C0M3M6M9M12M15MFY21FY20FY22BCCCAAAB12,511,000 10,870,000 12,571,000 429,405123,704456,119118,100288,029139,413B-8M-6M-4M-2M0M2M4M6M8M10M12M14MMetric tons CO2e FY21FY22CurrentyearFY20BaseyearFY30TargetyearAMicrosoft emissionsRetire
106、ments from avoided emissionsBBERetirements from carbon removalCProjected carbon removalEContracted carbon removalDCCCDDAAAACarbon Table 1Tracking our yearly progress toward carbon negative by 2030 In FY22,we procured 1.44 million metric tons and retired 514,156 metric tons of carbon removal as part
107、of our effort toward achieving our annual carbon commitment to be carbon neutral.Carbon removal contracted each year includes credits retired in the same year and to be retired in future years.Learn more in the Environmental Data Fact Sheeta.The chart has been updated to reflect the latest actual va
108、lues which incorporate the latest methodology,managements criteria metrics,and structural change adjustments.Scope 2 and 3 values are market-based and managements criteria metrics.b.Carbon negative by 2030:A company is carbon negative when it removes more carbon than it emits each year.Carbon Table
109、2Tracking our emissions across Scopes 1,2,and 3Microsofts overall emissions decreased by 0.5 percent in FY22.This was driven by improvements in our operations,telemetry-based measurement,renewable energy investments,sustainable aviation fuel purchases,and procurement of unbundled renewable energy ce
110、rtificates(RECs).Learn more in the Environmental Data Fact Sheeta.Scope 2 and 3 values are market-based and managements criteria metrics.b.Reported emissions for FY20 and FY21 have been recalculated for improved accuracy in accordance with our internal recalculation policy.We were able to disaggrega
111、te and identify previously unreported electricity for some of our leased datacenters due to improvements in our ability to capture such data.13|OverviewMicrosoft sustainabilityCarbonWaterWasteEcosystemsCustomer sustainabilityGlobal sustainabilityAppendixScope 3 CategoriesWastePurchased Goods&Service
112、sCapital GoodsFuel-and Energy-RelatedActivities(Market-Based)Upstream TransportationBusiness TravelEmployee CommutingDownstream TransportationUse of Sold ProductsEnd of Life of Sold ProductsDownstream Leased Assets47.24%30.97%3.46%1.85%0.06%1.07%1.08%0.53%10.25%0.14%0.06%96.71%Scope 3Scope 11.07%Sco
113、pe 22.22%Carbon Table 3Breaking down our FY22 Scope 3 emissions by sourceMicrosofts Scope 3 emissions account for more than 96 percent of our total emissions,with the vast majority of these emissions coming from two categories upstream,Purchased Goods and Services(Category 1)and Capital Goods(Catego
114、ry 2),and one downstream,Use of Sold Products(Category 11).Learn more in the Environmental Data Fact Sheeta.Scope 2 and 3 values are market-based and managements criteria metrics.Tackling Scope 3 Scope 3 represents 96 percent of Microsofts annual emissions in FY22.Our Scope 3 emissions result primar
115、ily from the operations of our tens of thousands of suppliers(upstream)and the use of our products across millions of our customers(downstream).Reducing Scope 3 emissions requires unprecedented scaling of corporate clean energy purchases across Microsofts value chain,to address both the electricity
116、consumed by our products,like Xbox devices or Surface laptops,and used to manufacture everything from semiconductors to fiber optic cables.Moreover,tackling Scope 3 means decarbonizing hard-to-abate industries,including the steel,concrete,and other building materials used in our datacenters,as well
117、as jet fuel for business travel and logistics.14|OverviewMicrosoft sustainabilityCarbonWaterWasteEcosystemsCustomer sustainabilityGlobal sustainabilityAppendixReducing Scope 1 and 2 emissions Sustainability is a key priority across all phases of our campus and datacenter projectsfrom integrated desi
118、gn and construction through operations and decommissioning.Scopes explainedScope 1Direct emissions created by a companys activitiesScope 2Indirect emissions from a companys activitiesScope 3Indirect emissions from all other activities up and down the value chainLearn more about GHG emissionsEnsuring
119、 energy efficiencyEnsuring our buildings are energy efficient is a key first step in reducing emissions.Building datacenters for optimum power usage effectiveness The power usage effectiveness(PUE)ratio is a metric of how efficiently a datacenter consumes and uses energy.We design and build Microsof
120、t datacenters as close to a PUE of 1 as feasible.Our newest generation of datacenters have a design PUE of 1.12 and,with each new generation,we strive to become even more efficient.In addition,all future built datacenters will be LEED Gold certified.We are also investigating how to encourage transpa
121、rency and efficiency improvements at leased sites.Promoting grid stability via energy storage solutionsWind farms generate more than 35 percent of Irelands electricity.As the supply of wind and other renewable energy increases,electric power grid operators need to ensure that they have resources ava
122、ilable to balance variable power production.Banks of lithium-ion batteries at our Dublin datacenter,typically used for backup power,will help grid operators provide uninterrupted service when demand exceeds renewable supplyreducing the need to rely on coal or natural gas to support a stable grid.The
123、 uninterruptible power supply for the Dublin datacenter includes new technology that enables real-time provision of services to the grid.Were also researching and testing alternatives to lithium-ion batteries,to address the challenges of high demand for raw materials and end-of-life disposal.Innovat
124、ing with thermal energy in our campusesAs part of our Redmond Campus Modernization project,we built the Thermal Energy Center.Nine hundred deep wells are the foundation of a large system that heats and cools the new buildings.The wells will compose one of the largest geoexchange fields in the United
125、 States to take advantage of the temperature difference between sub-ground soil,which remains constant year-round,and that of ambient air,which changes with the seasons.More than 220 miles of piping will distribute 320,000 gallons of water as a heat-exchange medium across the wells and the new campu
126、s in a closed loop system.The Thermal Energy Center houses chillers,cooling towers,backup generators,solar panels,and 65-foot tanks that can store thousands of gallons of water as thermal energy.The system is expected to reduce energy consumption by more than 50 percent of a typical utility plant.De
127、signing energy efficiency into our campusesOur global campus projects adhere to strict sustainability standards which have energy efficiency measures embedded in our design requirements.All major projects must achieve LEED Gold or Platinum certification,ensuring high energy efficiency design.Each of
128、 our campuses has a sustainability plan with energy efficiency projects planned each year to drive down our energy usage.Ensuring the energy efficiency of our buildings,including owned datacenters,is a key step in reducing our emissions.15|OverviewMicrosoft sustainabilityCarbonWaterWasteEcosystemsCu
129、stomer sustainabilityGlobal sustainabilityAppendixReducing Scope 1 and 2 emissions(continued)Reducing fossil fuels Microsoft is committed to being diesel free in our datacenter operations by 2030,moving to all-electric kitchens,and electrifying our campus fleet.Developing hydrogen fuel cells for dat
130、acentersThe decreasing cost of renewable sources,advancement of green hydrogen production technology,and increasing legislative focus are starting to show potential to reduce the datacenter industrys reliance on fossil-based diesel fuels.Microsoft is demonstrating the application of green hydrogen a
131、t industrial scaleswith a first of its kind,zero emission,3 MW hydrogen polymer electrolyte membrane(PEM)fuel cell back-up power generator piloted in July 2022.PEM fuel cell technology combines hydrogen and outside air in a chemical reaction that generates electricity,heat,and water.While hydrogen f
132、uel cell technology has been commercialized at smaller scales,this is the first time it has been demonstrated for multi-megawatt generation needs at datacenters.This year,Microsoft opened our first all-electric kitchen on our Redmond campus.The One Esterra food hall includes 12,200 square feet of al
133、l-electric cooking space,which supports more than 1,000 meals a day and uses 100 percent renewable hydro power.100%We use 100 percent carbon-free energy in our first all-electric kitchen on the Redmond campus.We are reducing fossil fuels with our first all-electric kitchen,which uses 100 percent ren
134、ewable power.Implementing all-electric kitchensThis year,Microsoft opened our first all-electric kitchen on our Redmond campus.The One Esterra food hall includes 12,200 square feet of all-electric cooking space,which supports more than 1,000 meals a day and uses 100 percent renewable hydro power.In
135、collaboration with Jade Range,we created custom commercial grade electric cooking equipment.Moving forward,we intend to construct all new kitchens with all-electric equipment and are developing retrofit plans for existing operations.We released a new Dining All-Electric white paper sharing our lesso
136、ns learned,technical details,and decision making.One Esterra is a preview of our Redmond Campus Modernization which will have over 77,000 square feet of all-electric dining operations and serve more than 10,000 meals a day.Electrifying our fleetWe are committed to fully electrifying our global campu
137、s operations vehicle fleet of over 1,800 vehicles by 2030.To date,we have received five all-electric buses in Ireland and sites in China are running all-electric routes through service providers.In Redmond,Microsoft purchased land to build an eight-acre electric vehicle charging and maintenance faci
138、lity for its internal and external commute fleet of electric buses and shuttles.16|OverviewMicrosoft sustainabilityCarbonWaterWasteEcosystemsCustomer sustainabilityGlobal sustainabilityAppendixReducing Scope 3 emissions Our Scope 3 commitment is our most powerful opportunity to help accelerate globa
139、l decarbonization efforts by engaging suppliers and customers in our value chain and partnering to reduce emissions associated with the business we do together.Microsofts Scope 3 emissions account for more than 96 percent of our total emissions,with the vast majority of these emissions coming from t
140、hree categories:Purchased Goods and Services(Category 1),Capital Goods(Category 2),and Use of Sold Products(Category 11).Overall,our Scope 3 emissions increased by 0.5 percent in FY22 compared to FY21.This is attributed to a few notable carbon reduction initiatives.First,weve extended the useful lif
141、e of servers and network equipment from four to six years,resulting in a decrease in emissions related to Capital Goods.Second,we introduced a new telemetry-driven methodology to help us account for the energy consumption from our Surface devices and our rapidly growing base of Xbox users.This new d
142、ata led us to purchase unbundled renewable energy certificates(RECs)to offset a portion of the emissions footprint from these devices.Just as is the case for Scope 2 reduction efforts,we plan to phase out the use of unbundled RECs in future years as programs to reduce emissions take effect,including
143、 substantial forward investments into new clean energy facilities yet to commence operation.Improving Scope 3 measurement and methodologiesAccurate measurement is one of the biggest challenges in Scope 3 emissions reduction.Microsoft has prioritized improving the methodologies we use for collecting
144、data and calculating emissions for greater precision and granularity.Increasing data quality from our supply chainSupply chain and capital goods are our biggest drivers of emissions,and we need better data in these categories to drive the right reduction strategies.In July 2022,we updated our Suppli
145、er Code of Conduct(SCoC)sustainability requirements to include independent third-party assurance of emissions data and to deliver a minimum 55 percent greenhouse gas(GHG)reduction by 2030.Improving accounting methodologiesFor capital goods,we are developing new methodologies to use product specific
146、emissions factors for building materials from the Embodied Carbon in Construction Calculator(EC3).This methodology is under development(not yet reflected in Scope 3 reporting metrics)and,in combination with using EC3 in project decisions to track and reduce embodied carbon at each phase of construct
147、ion,will enable us to reduce embodied carbon emissions on our construction projects as well as demonstrate those product-level reduction decisions in future reporting cycles.Advancing lifecycle assessmentsMicrosoft is promoting circular design principles for the cloud hardware and devices communitie
148、s.This year,we contributed to the“Life Cycle Assessment(LCA)Guidelines for Cloud Providers”and provided the guidelines to the Open Compute Project(OCP)to encourage other cloud hardware organizations to better understand and reduce their environmental impact.We are also evolving our approach to LCAs
149、in our devices.The LCAs will feed into an advanced Carbon Data Platform to provide the most representative emissions profile possible for our devices.The platform will be used for reporting and improved decision-making with visibility into actionable and granular environmental impacts.Optimizing dev
150、ices based on real-world dataWe are using real-world,anonymized insights from users of Surface and Xbox devices who opt to share information with us to inform our carbon emissions assessments.The data provides an estimate of how energy is consumed by those devices based on factors such as battery dr
151、ain and CPU utilization.We use this data to calculate high-quality estimates of the daily energy use in different geographies.In the future,we are exploring how to increase accuracy by shifting to hourly energy use tracking paired with more granular,impact-relevant grid emission rate data.Microsoft
152、has prioritized improving the methodologies we use for collecting data and calculating emissions for greater precision and granularity.We are using real-world,anonymized insights from users of Surface and Xbox devices who opt to share information with us to estimate how energy is consumed by those d
153、evices.17|OverviewMicrosoft sustainabilityCarbonWaterWasteEcosystemsCustomer sustainabilityGlobal sustainabilityAppendixReducing Scope 3 emissions(continued)Reducing emissions by consuming lessOur top priority for reducing Scope 3 emissions is to design efficiency and circularity into construction a
154、nd purchasing from the start,so our supply chain uses less energy.Improving efficiency to reduce the number of datacentersDatacenter resources are often designed and built for peak power usage,which can lead to underutilization and the need to build new datacenters.Microsoft is focused on improving
155、datacenter efficiency by reducing peak power,safely harvesting unused power,and increasing server density in existing datacenters through intelligent utilization,service level agreement(SLA)-driven power harvesting,and power-aware virtual machine allocation.We use the inherent redundancy in Microsof
156、t-internal software services to tap into datacenter capacity that is traditionally reserved for use only during power grid or infrastructure failures,so we can increase the number of servers in datacenters by up to 33 percent and,in turn,reduce the number of datacenters needed overall.Reducing embod
157、ied carbon in buildings and interiorsTo drive deeper reductions in embodied carbon,we are pursuing the use of transformational low-carbon materials.This year,we piloted a new concrete mix using recycled glass pozzolans,reducing embodied carbon for the slab structure by around half.We completed a lab
158、-scale pilot of structural materials made from biogenic limestone and algae-based concrete,which have the potential to drive down embodied carbon of concrete installations to near zero.Microsoft also completed a study of embodied carbon emissions in furniture,carpeting,and other interior building fe
159、atures to establish the baseline for reduction in our design standards.These standards,using the Embodied Carbon in Construction Calculator(EC3),set thresholds for mineral wool insulation,cold-formed steel framing,carpeting,and gypsum.Reimagining circularity of cloud hardwareMicrosoft has taken an i
160、nnovative approach by implementing Circular Centers in our datacenter campuses,aligning our end-of-life dispositioning processes with an integrated plan across the entire supply chain.Over the past year,we engaged new suppliers who can remanufacture assets and components,enabling new lifecycles for
161、our assets.We have demonstrated takeback/buyback models with several of our original asset suppliers,closing the loop on assets and enabling suppliers to repurpose or reuse assets and components,resulting in emissions reduction and material recovery.Our Circular Center program will reuse or recycle
162、90 percent of datacenter decommissioned cloud computing hardware assets,contributing directly to emissions reductions.Engineering carbon out of our cloud operations and hardware supply chainWe are focused on engineering carbon out of our value chain via the infrastructure equipment we use in the ope
163、ration of our datacenters.Using LCAs and environmental product declarations,we partner with our suppliers to assess hotspots of embodied carbon in the equipment we purchase,so we can better understand how we can help reduce emissions in our supply chain.In FY22,our cloud hardware designers worked wi
164、th material and component suppliers to design components that reduced dependency on virgin plastic,introducing up to 35 percent post-consumer recycled(PCR)plastic in select server components.We also redesigned certain rack components to drive material reduction,resulting in a reduction of plastic in
165、 those components by 12 percent.Boosting efficiency of device usageSurface 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.4 S
166、urface Pro 9 5G,powered by ARM technology,combines the energy efficiency of modern mobile devices with the computing power of a traditional computer.We also use software to reduce carbon emissions associated with our devices use stage,such as with the energy-efficient Shutdown(energy saving)mode for
167、 Xbox,which cuts power use by up to 20 times when it is off,compared to Sleep mode.90%Our Circular Center program will reuse or recycle 90 percent of datacenter decommissioned cloud computing hardware assets.Our Circular Centers contribute directly to emissions reductions by reusing or recycling har
168、dware assets.18|OverviewMicrosoft sustainabilityCarbonWaterWasteEcosystemsCustomer sustainabilityGlobal sustainabilityAppendixReducing Scope 3 emissions(continued)Transforming the market through purchasing Through our Supplier Code of Conduct(SCoC)and purchasing commitments,Microsoft is sending dema
169、nd signals to our supply chain that we expect lower-carbon inputs and business models.Roadmapping our supply chainSince 2020,our SCoC has required that suppliers disclose GHG emissions and plans to reduce those emissions.Last year,we met with our top suppliers to understand their sustainability obje
170、ctives and establish a shared approach to how we measure emissions,establish baselines,identify difficult to reduce areas,and review commitments to align on the priorities.In the indirect purchasing space,including consultancies and marketing companies,suppliers are starting to consider policies for
171、 hybrid work and exploring options for how best to transition to renewable electricity.In FY22,we supported the avoidance of 28,000 mt of CO2e savings in partnership with our suppliers by shifting cargo from carbon intense modes(air and truck)to lower-carbon modes(ocean and rail).We partner with sup
172、pliers to shift to lower-carbon modes of transport,resulting in a measurable emissions reduction.Reducing emissions in our devices supply chainWe continue to work with our device suppliers on carbon reduction interventions,renewable energy alternatives,and manufacturing process improvements.These re
173、ductions include 12 suppliers switching to renewable energy,with six converting to 100 percent renewable energy as members of RE100.Learn more about our efforts in our FY22 Responsible Sourcing Report.Decarbonizing transportationWe partner with our transportation logistics ecosystem to implement dec
174、arbonization solutions across our logistics network.In 2022,our logistics teams explored new ways to mitigate sources of logistics emissions.Based on the Global Logistics Emissions Council(GLEC)Framework and cutting-edge tooling,the new emissions approach will enable strategic investments and optimi
175、zations across Microsofts logistics operations in support of decarbonized transportation.In FY22,we supported the avoidance of 28,000 mtCO2e in partnership with our suppliers by shifting cargo from carbon intense modes(air and truck)to lower-carbon modes(ocean and rail).We also launched the first al
176、ternative energy vehicle(AEV)pilots for trucking.Advancing sustainable aviationMicrosoft is advancing efforts to increase the production of and accounting standards for sustainable aviation fuel(SAF).In 2022,we piloted the Roundtable on Sustainable Biomaterials(RSB)“book and claim”process,which will
177、 result in a SAF certificate for Microsoft in collaboration with United Airlines and AirBP.In July 2022 Microsoft announced a partnership with Alaska Airlines and Twelve,a Climate Innovation Fund investee,to operate the first demonstration flight using e-Jet,a low-carbon jet fuel produced from recap
178、tured carbon dioxide,water,and renewable energy.Microsoft worked together with the Environmental Defense Fund to publish the High Integrity Sustainable Aviation Fuel Handbook.19|OverviewMicrosoft sustainabilityCarbonWaterWasteEcosystemsCustomer sustainabilityGlobal sustainabilityAppendixTransitionin
179、g to carbon-free energyElectricity use accounts for the vast majority of Microsofts operational carbon emissions footprint.In parallel to energy reductions and efficiencies,our work supports the growth and adoption of more carbon-free energy.Our long-term vision is to reach a state where,on all the
180、worlds grids,100 percent of electrons,100 percent of the time,are generated from zero-carbon sources.On the path to reaching this vision,our commitment is to cover 100 percent of Microsofts load with renewable energy purchases by 2025,and by 2030 to ensure that we meet our 100/100/0 commitment,meani
181、ng 100 percent of Microsofts electricity consumption,100 percent of the time,will be matched by zero-carbon energy purchases.In FY22,we continued to work with industry-leading partners such as Shell,Constellation,and ENGIE to procure new carbon-free energy resources to meet our goals.To continue adv
182、ancing the green energy economy in the United States and in recognition of the opportunity to proactively collaborate on driving a more reliable domestic solar module supply chain,Microsoft is collaborating with Hanwha to increase domestic green energy manufacturing through a first-of-its-kind initi
183、ative for major equipment and associated construction services.By partnering with Hanwha,Microsoft seeks to facilitate quicker adoption of domestic green energy equipment supply through its pipeline of domestic power purchase agreements(PPAs).In FY22,we signed new power purchase agreements around th
184、e globe,bringing our total portfolio of PPAs for carbon-free energy to over 13.5 GW.This includes deals across 16 countries including New Zealand,the Netherlands,Chile,Singapore,Austria,Ireland,and the United Kingdom.Globally,we have more than 135 renewables projects in our PPA portfolio and are pos
185、itioned to continue to grow our renewable resource procurement to meet our goals.Committing to environmental justice in carbon-free energy procurementIn addition to carbon-free energy,Microsoft has made commitments to diversity and inclusion,and to racial equity.An important point of intersection fo
186、r these is environmental justice.To support environmental justice outcomes in a reimagined energy sector,Microsoft is in its third year of modeling approaches that link our carbon-free energy commitments with community-led clean energy and resiliency projects.Through partnerships,we have established
187、 new renewable energy procurement models that create new opportunities for frontline communities by equitably distributing the benefits of the clean energy economy.Weve shared our lessons learned in a position paper with Volt Energy Utility,including an Environmental Justice Measurement&Evaluation F
188、ramework that guides our initiatives.Examples of how weve worked to integrate equity and justice into our approaches include the following: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
189、renewable power to traditionally under-resourced populations.ENGIE and Microsoft are working with a leading community solar organizer and provider,Solstice,who engage directly with residents and community organizations in cities and counties across the United States to provide access to renewables f
190、or customers that cannot afford to install rooftop solar.Solstice pioneered EnergyScore,a unique solution that uses utility payment history and other customer data to provide a more accurate and inclusive prediction of an individuals ability to pay an energy bill.Once fully subscribed,the two solar
191、gardens could save Illinois subscribers more than$100,000 a year in total electricity costs,while also reducing carbon emissions equivalent to more than 1,000 households average electricity usage.We supported a 6.6-MW solar facility in Panola County,Mississippi,which provides first-time solar access
192、 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,Clearloop is collaborating with Microsoft to expand access to clean energy in a state that
193、currently relies on fossil fuels to power nearly 90 percent of its electricity.Clearloop will also collaborate with local community programs to provide workforce development,training,and hiring opportunities.Through a justice-centered selection process led by the Just Transition PowerForce,we provid
194、ed environmental justice grants to seven organizations that advance climate readiness,economic opportunity,and health and wellbeing in their communities:Native Renewables,Three Part Harmony Farm,Bridging the Gap in Virginia,West Atlanta Watershed Alliance,Pittsburghers for Public Transit,Harambee Ho
195、use,and Little Village Environmental Justice Organization.To support environmental justice outcomes in a reimagined energy sector,Microsoft is in its third year of modeling approaches that link our carbon-free energy commitments with community-led clean energy and resiliency projects.12%We also rede
196、signed rack components,resulting in a reduction of plastic by 12 percent for certain components.20|OverviewMicrosoft sustainabilityCarbonWaterWasteEcosystemsCustomer sustainabilityGlobal sustainabilityAppendixTransitioning to carbon-free energy(continued)Contribution to collective action to decarbon
197、ize the electric grid 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
198、 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 Ene
199、rgy Compacts,reflecting actions and finance commitments.Microsofts Energy Compact documents its 100/100/0 commitment to carbon-free energy.Other projects With PosiGen Louisiana Solar,we supported the reduction of electricity bills for low-to-moderate income residents through financing solar and ener
200、gy 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 distri
201、cts 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 cr
202、edits 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
203、 in 2020.This first purchase funded the installation of public streetlights connected to Nurus 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,a
204、nd 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 Nurus new 3.7 MW solar metro-grid,which is anticipated to serve 5,000 customers and enhance more than 2
205、5,000 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.With Sustainable Energy for All,an organization that works in partners
206、hip with the United Nations,Microsoft committed to take actions that drive toward decarbonization of the electric grid to combat climate change.We join national and local governments,businesses,foundations,and international civil society and youth organizations who have submitted Energy Compacts,ref
207、lecting actions and finance commitments.Microsoft links carbon-free energy commitments with community-led clean energy and resiliency projects.21|We join national and local governments,businesses,foundations,and international civil society and youth organizations who have submitted Energy Compacts,r
208、eflecting actions and finance commitments.OverviewMicrosoft sustainabilityCarbonWaterWasteEcosystemsCustomer sustainabilityGlobal sustainabilityAppendixRemoving carbon We are three years into our mission to build the carbon dioxide removal(CDR)capacity that the world will require to prevent the wors
209、t effects of climate change.Our focus 1 Nascent,high-quality solutions that need early support to scale 2 Mature proposals for large-scale projects(for example,500,000 metric tons/year)3 Financial institutions ready to provide,or curious about,project-level lending against credit-worthy offtakes 4 O
210、ther buyers ready to syndicate offtakes to assure capacity gets built 5 Insurance,assurance(such as independent MRV),and performance-guarantee players across CDR approaches Our first offtake agreement with Climeworks was announced in July 2022.Over the past 18 months,we have developed the process an
211、d structures to create long-term carbon removal offtake agreements designed to get new projects built.This is how we can move past many of the quality challenges prevalent in the market today and take CDR to scale.Our offtake agreements are built on our experience procuring renewable energy,tailorab
212、le to the risks faced by diverse removal approaches,and structured to enable projects to gain outside financing.We are now building a portfolio with the goal of greater than five million metric tons a year in offtakes in order to hit our 2030 goals,balanced across low,medium,and high-durability solu
213、tions.We are moving into the next phase of our carbon removal journey.Offtake agreements Our first offtake agreement with Climeworks was announced in July 2022 and weve followed up with several additional large investments of increasing scales.We are targeting multiple multi-year purchases of up to
214、250,000 tons per year to serve as a risk-diversified portfolio of projects meeting our needs in 2030 and beyond.2022 projects and results In FY22,we contracted 1,443,981 metric tons of carbon removal.We also made multi-year commitments to carbon removal.These projects will provide around 300,000 met
215、ric tons towards our greater than five million metric ton goal in 2030.Projects include:CarbonFuture Together with Pacific Biochar,CarbonFuture is re-tooling lumber mills bioenergy plants to produce more biochar compared to energya process which can be scaled across the mill bioenergy fleet.Neustark
216、 Neustark is removing carbon within the Swiss concrete recycling industry by carbonating demolished concrete with carbon dioxide from biogas production.Acorn This program from Cooperative Rabobank UA assists in the transition to agroforestry systems in the tropics including in Colombia,Ivory Coast,N
217、icaragua,and Peruand is replicating that financing model in additional areas.22|Our first offtake agreement with Climeworks was announced in July 2022.OverviewMicrosoft sustainabilityCarbonWaterWasteEcosystemsCustomer sustainabilityGlobal sustainabilityAppendixRemoving carbon(continued)Whats next on
218、 carbon removal Looking ahead,were focused on several exciting and necessary developments.First,taking high-quality and additional nature-based solutions to greater scale.Second,bringing in more demand for CDR after the landmark announcements of the First Movers Coalition and Frontier Climate.Third,
219、trialing the emerging set of second wave,hybrid carbon removal solutions that are coming to market,such as Heirloom,which combines advantages of carbon mineralization and direct air capture(DAC)to amplify the natural ability of limestone to remove carbon dioxide from the air.Fourth,identifying the b
220、est ways to embed carbon removal solutions in an overall circular economy.2023 carbon removal key projects Climeworks offtake In July 2022,we signed a 10-year forward agreement with Climeworks to purchase DAC removals from their Orca and Mammoth plants,building on our earlier purchase commitment wit
221、h Climeworks.This prototypical agreement is our model for taking carbon removal to scale and meeting our ambitious goals.Climate Robotics Early in 2022,we signed a small deal with Climate Robotics and we doubled-down in August with a four-year,75,000 metric ton contract.We believe this is among the
222、largest direct biochar CDR procurements to date.Climate Robotics novel approach to biochar production will eliminate the transport of biomass to central plants,instead taking pyrolizers to the fields where crop waste is processed and re-tilled.O.C.O TechnologyIn September 2022,we signed a deal for 2
223、5,000 metric tons of CDR from O.C.Os mineralization technology,which takes industrial waste(like fly ash)and uses it as the core of manufactured limestone.Thats a neat bit of upcycling and a great way to work carbon removal into a circular-economy solution.Moreover,O.C.O showed pragmatic,long-term t
224、hinking by holding back some tonnage until empirical results clarify marginal carbon accounting uncertainty.CommuniTree We renewed our investment in the CommuniTree project in November 2022,signing for 700,000 metric tons in the form of ex ante credits over the next two years,which we project will d
225、eliver 100,000 metric tons of ex post verified carbon in 2030 and subsequent years.CommuniTree engages smallholder farmers in Nicaragua to plant and maintain native trees alongside existing farming practices,restoring ecosystems and improving local livelihoods.23|OverviewMicrosoft sustainabilityCarb
226、onWaterWasteEcosystemsCustomer sustainabilityGlobal sustainabilityAppendixKey trends 1 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 bus
227、iness as usual to deliver innovative new goods and services,such as decarbonization technologies.2 Emissions data quality needs to improve across the value chain Data quality continues to be an area of need across the sustainability landscapeespecially in supply chain,capital goods,and logistics.Our
228、 update to our SCoC to require suppliers to have their data assured aims to improve the quality of our supply chain data.3 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
229、calculation methodologies to lead the industry and improve the actionability of our data and opportunities.4 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 furth
230、er 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.5 Lower embodied carbon in materials needs to be a focus Lower embodied-carbon so
231、lutions for key materialssuch as semiconductorshave yet to be developed commercially or at scale.We are looking ahead to cross-sector partnerships to help jumpstart these strategies.Resources Carbon removal lessons learned Microsofts carbon removal lessons learned from our first two years of corpora
232、te purchasing.Read the 2022 paper Read the 2021 paper Sustainable aviation fuel guidance Microsoft supported the Environmental Defense Fund in developing a handbook which provides expert guidance on using high-integration sustainable aviation fuel.Read the paper All-electric kitchens Microsoft relea
233、sed a new white paper,Dining All-Electric,where we share our lessons learned,technical details,and decision making for all-electric kitchens.Read the paper Environmental justice in renewable energy procurement Microsoft and Volt energy shared lessons learned on environmental justice in renewable ene
234、rgy procurement.Read the paper Circular design principles for cloud hardware Microsoft and WSP developed the paper,Life Cycle Assessment(LCA)Guidelines for Cloud Providers,and provided the guidelines to the Open Compute Project(OCP).Read the paper24|OverviewMicrosoft sustainabilityCarbonWaterWasteEc
235、osystemsCustomer sustainabilityGlobal sustainabilityAppendixWhats next Scope 3 emissions reduction 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 emis
236、sions.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:1 Increasing efficiency:We will design our pro
237、ducts and infrastructure in ways that reduce energy and carbon intensity,minimizing both downstream and upstream carbon emissions.2 Building markets:Scaling sustainability initiatives,such as the Microsoft Climate Innovation Fund and carbon fee,position us to invest in and purchase from nascent tech
238、nology providers,like Heirloom,to build supply chains for decarbonized materials and fuels.3 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 invest
239、ment into infrastructure and technology solutions worldwide.4 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.5 Advoca
240、ting 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.Scope 3 is perhaps the ultimate decar
241、bonization challenge,necessitating the co-evolution of commercial,technology,and policy best practices among thousands of global stakeholders.Our carbon negative commitment is an invitation to the world to participate in this journey,translating ingenuity into action,and action into impact.Our carbo
242、n negative commitment is an invitation to the world to participate in the journey to emissions reductions.25|OverviewMicrosoft sustainabilityCarbonWaterWasteEcosystemsCustomer sustainabilityGlobal sustainabilityAppendixGetting to water positive Water Reducing our water footprint 30 Replenishing wate
243、r 33 Improving access to water 34 Key trends and whats next 35 Our approach In 2020,we made a commitment to be water positive by 2030 and co-founded the Water Resilience Coalition(WRC),an industry-driven,CEO-led coalition of the UN Global Compact CEO Water Mandate to reduce water stress by 2050.For
244、Microsoft,being net water positive means we will reduce water consumption across our global operations,replenish more water than we use,provide people across the globe with access to water and sanitation services,drive innovation,and engage in water policy.Our internal water fee,modeled after our ca
245、rbon fee,plays a critical role in enabling our progress against our water commitment.The fee was established in FY20 and is used to fund replenishment and access projects around the globe.It is charged to business groups based on annual water consumption projections at a rate that was determined wit
246、h historical data and guidance from experts on the cost of replenishment projects.The objectives of the fee are to incentivize businesses across Microsoft to take steps to reduce water use and to raise internal awareness of our water positive commitment.We are strengthening how we manage water withi
247、n Microsoft,while working to improve the way the world evaluates and manages water today and for future generations.15.6M In FY22 we contracted replenishment projects that are estimated to provide more than 15.6 million m3 in volumetric water benefit.Reducing consumption,replenishing,and enabling ac
248、cess to water are all essential to becoming net water positive.26|15.6MIn FY22 we contracted replenishment projects that are estimated to provide more than 15.6 million m3 in volumetric water benefit.OverviewMicrosoft sustainabilityCarbonWaterWasteEcosystemsCustomer sustainabilityGlobal sustainabili
249、tyAppendixCommitments and progress Water positive by 2030Our commitment Replenishing more water than we use By 2030,we will replenish more water than we consume across our global operations in water-stressed regions where we work.Increasing access to water We will provide 1.5 million people with acc
250、ess to clean water and sanitation services by 2030.Our progress 15.6 million m3 of water replenishment In FY22,we contracted for replenishment projects that are estimated to provide more than 15.6 million m3 in volumetric water benefit over the lifetime of these projects.Since the inception of this
251、program,we have contracted for projects that are estimated to provide more than 35 million m3 in volumetric water benefit over the lifetime of these projects.Water access for 1 million people By the end of FY22,we provided more than 550,000 people with access to clean water and sanitation solutions
252、in Brazil,India,Indonesia,and Mexico and reached just under one million people by the end of the calendar year 2022.Investing in replenishment projects helps support communities and protect ecosystems.Improving water access empowers communities.27|Improving water access empowers communities.Investin
253、g in replenishment projects helps support communities and protect ecosystems.OverviewMicrosoft sustainabilityCarbonWaterWasteEcosystemsCustomer sustainabilityGlobal sustainabilityAppendixFY21FY20FY22Current yearBase year0M2M4M6M8MWater m36,399,4154,772,8904,196,461Total water consumptionTotal contra
254、cted water replenishment0M5M10M15M20MWater m315,686,41612,937,2072,840,030FY21FY20FY22Current yearBase yearWater Table 1 Measuring our annual water consumption to help inform our replenishment targets In FY22,we consumed nearly 6.4 million m3 of water from our operations.The increase in consumption
255、was proportional to our business growth year-over-year.This data informs the amount of water we need to replenish to ensure we are making progress against our water positive commitment.Learn more in the Environmental Data Fact Sheet Water Table 2 Replenishing more water than we consume on our journe
256、y to water positive by 2030 In FY22,we contracted for replenishment projects that are estimated to provide more than 15.6 million m3 in volumetric water benefit over the lifetime of these projects.Learn more in the Environmental Data Fact Sheet a.Reported replenishment values were updated to represe
257、nt contracted impact over the lifetime of a project.This update in reporting was driven by our effort to improve our measurement methodologies.28|OverviewMicrosoft sustainabilityCarbonWaterWasteEcosystemsCustomer sustainabilityGlobal sustainabilityAppendix ChileSouth Africa16,408 Brazil340 MexicoUni
258、ted States309,921India225,389 IndonesiaWater Table 3 Delivering on our water positive commitment by enabling access to water and sanitation services,and through water replenishment projects In FY22,Microsoft provided 552,058 people with water access across Brazil,India,Indonesia,and Mexico.From the
259、programs inception through December 2022,we have provided nearly one million people with water access across these regions.Since year one,we have contracted 27 replenishment programs in water-stressed basins,which are contracted to deliver more than 35 million m3 of replenishment over their lifetime
260、.552,058 Total population provided with wateraccess in FY2227 Total number of water replenishment projects Learn more in the Environmental Data Fact Sheet a.Reported access values represent data reviewed and validated by water.org.b.Microsofts reported replenishment values represent impact since pro
261、grams inception in FY18.29|OverviewMicrosoft sustainabilityCarbonWaterWasteEcosystemsCustomer sustainabilityGlobal sustainabilityAppendixReducing our water footprint We take a holistic approach to water reduction across our campuses and datacenters from design to efficiency in existing systems,recyc
262、ling and repurposing,and innovating new technologies.We measure and report the global water use of our campuses and datacenters to drive efficiency and reuse.5 Pillars of water positive 1 Reducing our water footprint across our direct operations 2 Increasing access to water and sanitation services 3
263、 Replenishing more water than we consume across our operations 4 Scaling water solutions through innovation and digitization 5 Advocating for effective and innovative water policy Designing for efficiency Microsoft employs a comprehensive lifecycle assessment methodology in our datacenters that goes
264、 beyond typical carbon-centric measurements and considers the GHG emissions,energy,water,and other environmental impacts of technology,from servers to full datacenters.Our approach accounts for the entire cycle of production,transport,use,and end of life in order to calculate the environmental burde
265、ns of these systems and identify opportunities for reductions.It is empowering our own teams to consider the full environmental impact of their designsboth today and in the future.In 2022 we formally shared our standard operating procedure(SOP)recommendations so that others in the datacenter industr
266、y can improve their own lifecycle assessment.As our datacenter business continues to grow,Microsoft is committed to reducing the intensity with which we withdraw from our resources,both water and energy.We design for efficiency to reduce the water intensity of our operations.Increasing efficiency in
267、 existing systems Water usage effectiveness(WUE)is a key metric relating to the efficient and sustainable operations of our datacenters and is a crucial aspect as we work towards our commitment to be water positive by 2030.WUE is calculated by dividing the liters of water used for humidification and
268、 cooling of the datacenter by the total annual amount of power(measured in kWh)needed to operate our datacenter IT equipment.There are variables that can affect WUE,many of which relate to the location of the datacenter.Datacenters in some parts of the world,like Sweden and Finland,operate in natura
269、lly cooler environments and require no freshwater for cooling,whereas warmer climates like Phoenix will require water for portions of the year.Our datacenter designs minimize water use through all climates.As our datacenter business continues to grow,Microsoft is committed to reducing the intensity
270、with which we withdraw from our resources,both water and energy,focusing on being as efficient as possible while balancing the needs for power and water in the regions where we develop.All future built datacenters will be LEED Gold certified with an emphasis on water and energy conservation.30|Overv
271、iewMicrosoft sustainabilityCarbonWaterWasteEcosystemsCustomer sustainabilityGlobal sustainabilityAppendixReducing our water footprint(continued)Recycling and repurposing Wherever possible,we look at recycling and repurposing water at our datacenters and campuses,including harvesting rainwater,procur
272、ing reclaimed water,and reusing water within our facilities.Recycling and reusing water We measure and monitor reused water at datacenters and campuses across the globe and use meters to collect real-time data on usage,including recycling,for owned datacenters.We design our cooling systems to reduce
273、 consumption to address stressed areas,geographic locations,and poor water quality.For recycling,in our Arizona and Mexico datacenters we are treating the incoming water to maximize cycles and minimizing water discharge to drain.Our Johannesburg office greywater treatment plant is separately metered
274、 to track water reused monthly.At our Silicon Valley campus,which is pursuing net-zero water certification and is on track to be one of first tech campuses to secure this certification,we operate a water treatment plant to process on-site grey and black water for reuse and have established a water b
275、udget to quantify the amount of water captured,recycled,and reused on-site.We incorporate rainwater harvesting and reuse at our campuses and datacenters around the globe.Procuring reclaimed water from utilities While availability of reclaimed water is limited,we procure reclaimed water from utilitie
276、s where it is available to reduce our dependence on freshwater supply.We are procuring reclaimed water at our datacenters in Washington,Texas,California,and Singapore.We also continue to move forward on plans to access municipal recycled water for landscaping and plumbing at LinkedIns Mountain View
277、headquarters.We are currently testing municipal recycled water quality to confirm on-site treatment requirements.This project is anticipated to save approximately 30,500 m3 of potable water annually when implemented,which we expect to be completed in 2023.Harvesting rainwater We incorporate rainwate
278、r harvesting and reuse at our campuses and datacenters around the globe.We are harvesting rainwater in our Netherlands,Ireland,and Sweden datacenters and have rainwater harvesting in the designs for new datacenters in England,Finland,Italy,South Africa,and Austria.At our Silicon Valley and Beijing c
279、ampuses,harvested rainwater is used for toilet flushing,landscaping irrigation,road washing,and more.We also have plans for rainwater harvesting at our Redmond,England,Ireland,and Namibia campuses.Improving the quality of stormwater runoff Our Redmond Campus Modernization project is focused on impro
280、ving the quality and quantity of stormwater runoff.We implemented an underground parking garage,removing approximately 13.9 acres of previous surface parking and roadways,and avoided copper and zinc coated metal panels in our campus to eliminate any toxicity to downstream aquatic life.The campus is
281、also Salmon-Safe Certified,reducing the impacts it has on water quality and fish habitat.13.9 We removed 13.9 acres of surface parking and roadways at our Redmond Campus.Procuring reclaimed water for our LinkedIn campus reduces our dependence on freshwater.31|13.9We removed 13.9 acres of surface par
282、king and roadways at our Redmond Campus.OverviewMicrosoft sustainabilityCarbonWaterWasteEcosystemsCustomer sustainabilityGlobal sustainabilityAppendixReducing our water footprint(continued)Innovating new water technologies Innovation is a critical component of our water reduction approach at campuse
283、s and datacenters.We are investing in water reduction technologies including thermal energy,cooling technologies,and air-to-water generation.Saving water through thermal energy Our Thermal Energy Center in Redmond is predicted to save over 37,850 m3 of water per year through several unconventional a
284、pproaches to heat rejection.The geoexchange field transfers heat into the ground,which is approximately 50 degrees Fahrenheit.The systems wells and tanks will store water as heat energy for future use,instead of expelling it through the cooling towers,which is expected to reduce water use by 30,280
285、m3 a year or roughly the volume of 12 Olympic pools.As Microsoft and the industry continues to advance immersion cooling technology,were also looking at ways to optimize the performance of chips beyond their pre-defined voltage,thermal,and power design limits,a concept called overclocking.Keeping da
286、tacenters cool with less water We continue to integrate our standards in water reduction technologies where we use direct outside air most of the year to cool servers.We otherwise cool through direct evaporation that requires a fraction of the water compared to other,conventional water-based cooling
287、 systems such as water-cooled chillers.By powering our datacenter with power from the Sun Streams 2 Solar Project owned by local partner,Longroad Energy,we are displacing the water needed in the traditional electricity generation process.Pioneering liquid immersion cooling In 2021,Microsoft was the
288、first cloud provider to run two-phased liquid immersion cooling in a production environment.At the component level,were testing new biodegradable materials to empower greater circularity of our servers and exploring microfluidics to cool chips more efficiently.As Microsoft and the industry continues
289、 to advance immersion cooling technology,were also looking at ways to optimize the performance of chips beyond their pre-defined voltage,thermal,and power design limits,a concept called overclocking.Investing in air-to-water generation As climate change exacerbates water risks,air-to-water generatio
290、n is an important innovation that we are investing in,both within our own four walls and through our recent investment in SOURCE,a renewable water technology that is powered by solar.We are also investing in air-to-water generation across our operations.Four new air-to-water generators were installe
291、d at our Hyderabad campus in 2020 and 2021.We installed an adiabatic cooling system at our Bengaluru campus,which is now producing nearly 8 m3 of purified drinking water a day,in addition to reducing electricity consumption.37,850 m3 The Redmond Campus Thermal Energy Center is predicted to save over
292、 37,850 m3 of water per year.Advancing liquid immersion cooling technology helps to reduce water consumption in our operations.32|37,850m3The Redmond Campus Thermal Energy Center is predicted to save over 37,850 m3 of water per year.OverviewMicrosoft sustainabilityCarbonWaterWasteEcosystemsCustomer
293、sustainabilityGlobal sustainabilityAppendixReplenishing water Microsoft is committed to replenishing more water than we consume across our operations.We focus on investing in replenishment projects that protect watersheds,restore wetlands,and improve infrastructure in water-stressed regions where we
294、 operate.We use the Volumetric Water Benefit Accounting(VWBA)guidance to quantify the estimated volumetric water benefits that can be claimed from a range of different replenishment project types.We seek to align the project type with the unique needs of each location;for example,in a location with
295、high water quality challenges,we will focus on projects that help to improve water quality in the basin.We have contracted for 27 replenishment projects,totaling more than 35 million m3 of potential volumetric water benefit and have invested$7 million in the program overall.In FY22,we invested in si
296、x new projects,which are expected to replenish more than 15 million m3 of water in the next decade.To date,we have contracted for 27 replenishment projects,totaling more than 35 million m3 of potential volumetric water benefit and have invested$7 million in the program overall.We are building the in
297、frastructure to ensure that we can scale to 40 priority water-stressed locations across the globe and are looking at a blend of traditional and more innovative replenishment projects.We are also partnering with companies and other key stakeholders to further define how organizations should account f
298、or benefits and the types of projects that should be prioritized in key locations.In FY22,we invested in a range of different types of projects from agricultural water efficiency to groundwater restoration to watershed restoration,including the following:Supporting water infiltration and groundwater
299、 recharge in San Antonio In 2021,we partnered with the Edwards Aquifer Authority to acquire a conservation easement and keep lands from being developed in San Antonio,Texas.The easement focuses on lands that are most likely threatened by rapid development or negative-management practices and ensure
300、these lands are not developed to allow for water infiltration and groundwater recharge.Targeted acquisition of conservation easements and implementation of land management practices are projected to protect,on average,0.6 acre-feet of recharge-per protected acrewith the potential to increase average
301、 recharge rates over time through the establishment of land-management practices.Restoring Sembakkam Lake and wetlands in Chennai,India We supported The Nature Conservancy(TNC)in improving water quality,storage capacity and groundwater recharge of Lake Sembakkam.The project is establishing a nature-
302、based wastewater treatment system at the lake using a constructed wetland system that is estimated to treat 6,000-7,000 m3 of wastewater entering the lake per day and benefit approximately 10,000 people.These solutions will improve groundwater recharge,biodiversity habitat,and flood control.They wil
303、l also create a waterfront to serve as a recreational site for community members.Improving precision agriculture in Santiago,Chile In 2022,we contracted a project to improve agricultural water efficiency and overall water supply reliability in the Maipo Basin in Chile,the key watershed that Santiago
304、 depends upon.The project is expected to begin realizing benefits in 2023.Microsoft is partnering with Kilimo and using its IT platform to catalyze change by educating and supporting farmers in optimizing water use.The project aims to increase agricultural efficiency and productivity,reduce water de
305、mand,and protect ground and surface water resources.The project will support expanded applications of Internet of Things(IoT)-based satellite moisture and irrigation management systems on 360 hectares of private irrigated family farms to decrease water pumping and diversion.We tailor replenishment p
306、rojects to meet the needs of the communities we impact.33|OverviewMicrosoft sustainabilityCarbonWaterWasteEcosystemsCustomer sustainabilityGlobal sustainabilityAppendixImproving access to water We continue to make progress towards our commitment to provide 1.5 million people with access to safe drin
307、king water and sanitation solutions by 2030.One in four people across the globe do not have access to clean water and this is expected to increase as water challenges are exacerbated by climate change.In 2020,we committed to providing Water.org with$3 million over three years to provide micro-loans
308、to cover a range of solutions,such as installation of household taps and toilets,rainwater harvesting,storage and well restoration for communities and schools.We are helping to develop resources that support organizations in understanding the different types of accessibility projects they can invest
309、 in across different types of water,sanitation,and health (WASH)solutions.In FY22,Microsofts contribution has provided more than 550,000 people with access to clean water and sanitation services in Brazil,India,Indonesia,and Mexico.This project reached just under one million people by December 2022.
310、We are also helping to develop resources to support organizations in understanding the different types of accessibility projects they can invest in,as well how to quantify the benefits and impacts from these investments across different types of water,sanitation,and health(WASH)solutions.Increasing
311、water access in Mexico Mexico is facing extreme water challenges as a result of increasing demands on water resources.In peri-urban towns outside of Mexico City,the local government subsidizes water for their residents.This is a common approach to help improve household access to water;however,it is
312、 not holistic.Patty,a healthcare worker,was unable to get the amount of water her family needed through the program.She used to wait hours each month to receive her household ration of water,taking time away from work and earning income.To supplement the water she did receive,Patty bought bottled wa
313、ter and saved rainwater in a makeshift bucket to use for cooking,laundry,and bathing.Contigo,a local partner of Water.org,allowed Patty to affordably finance a rain storage solution with a large tank,gutters,and a cistern to cover her household water needs.This represents one of the roughly 150,000
314、micro-loans that Microsofts funding has supported across the globe.550,000 In FY22,Microsofts contribution to water.org has provided more than 550,000 people with access to clean water.Our access projects empower people,families,and communities to do more through water access micro-loans.34|550,000I
315、n FY22,Microsofts contribution to water.org has provided more than 550,000 people with access to clean water.OverviewMicrosoft sustainabilityCarbonWaterWasteEcosystemsCustomer sustainabilityGlobal sustainabilityAppendixKey trends 1 Water requires a collective approach Working collectively to solve c
316、hallenges 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
317、 need.2 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 h
318、igh-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)a
319、nd private sector entities,are critical to scale the market and collective impact.3 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.Organizat
320、ions 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 t
321、o scale water technologies needed to tackle water scarcity,quality,and access.Resources Water Action Hub 4.0 Identify organizations to partner with in specific basins and use a wide range of tools and case studies.A new tool allows companies to evaluate their water management maturity and compare pr
322、ogress against peers.Use the tool Volumetric Water Benefit Accounting(VWBA)This guidance document provides corporate water stewardship practitioners with a standardized approach and set of indicators to quantify and communicate the volumetric water benefits and complementary indicators of water stew
323、ardship activities.Read the guidance Water Risk Monetizer The free tool,built by Microsoft and Ecolab,allows you to assess the true value of water and risk exposure you face.Use the tool WRI Aqueduct Tool and WWFs Water Risk Filter Understand the local water stress and scarcity concerns where you op
324、erate.Use the WRI tool Use the WWF tool 35|OverviewMicrosoft sustainabilityCarbonWaterWasteEcosystemsCustomer sustainabilityGlobal sustainabilityAppendixWhats next 1 Investing in innovative replenishment projects We anticipate increasing the number of innovative replenishment projects that we invest
325、 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 challenge
326、s 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.2 Integrating environmental justice into replenishment Environmental justice is embedded in our wate
327、r 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 conseq
328、uences of projects that could cause harm to disadvantaged communities in the locations where we operate.3 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.Whi
329、le 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.4 Investing in projects that will increase access to water and sanitation solut
330、ions 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 cant afford a loan and th
331、us 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.We are investing in innovation to advance replenishment,increase access,and reduce our water footprint.36|Overv
332、iewMicrosoft sustainabilityCarbonWaterWasteEcosystemsCustomer sustainabilityGlobal sustainabilityAppendixGetting to zero waste Waste Reducing our waste footprint 41 Key trends and whats next 44 Our approach Every year,people consume 100 billion tons of materials,and in 2020 only 8.6 percent of those
333、 materials were cycled back into the economy after use,according to the 2022 Circularity Gap Report.Linear take-make-waste systems and existing infrastructure are not adequate to maintain,collect,and redistribute materials effectively for a global circular economy.We recognize the urgent need to reduce carbon emissions associated with the lifecycle of these materials.As a company that manufactures