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1、 How can we advance sustainability?2024 Environmental Sustainability Report Reporting on our 2023 fiscal year Overview Microsoft sustainability Customer sustainability Global sustainability Appendix 02 In this report Overview Foreword 04 2023 highlights 07 How we work 08 Cover captured by:Finnian Po

2、wer Regional CE Program Manager,IrelandMicrosoft sustainability Carbon Waste Our approach 10 Our approach 35 Improving the measurement and efficiency of our operationsBuilding markets and driving progress Learnings and whats next 14 18 22 Reducing waste at our campuses and datacenters Advancing circ

3、ular cloud hardware and packagingImproving device and packaging circularity Learnings and whats next 3740 42 45 Water Ecosystems Our approach 23 Our approach 46 Reduction Replenishment Access Innovation Policy 26 28 30 32 33 Improving biodiversity at our campuses Increasing biodiversity at our datac

4、enters Protecting more land than we use 48 50 51 Learnings and whats next 34 Datacenter community environmental sustainability 53 Learnings and whats next 55 Customer sustainability Overview 57 Microsoft Cloud for Sustainability 59 Devices 61 Green software 65 Arts and culture 67 Planetary Computer

5、68 Progress through partnership 69 Global sustainability Overview 70 Investing in innovation 72 Accelerate sustainability solutions with AI 76 Policy and advocacy 79 Employee engagement 81 Scaling impact through Green Skilling 82 Progress through partnership 83 5M metric tons of carbon removal contr

6、acted in FY23 18.5K metric tons of waste diverted from landfills and incinerators 61M cubic meters of water replenishment projects contracted by end of FY23$761M allocated towards climate technologies through our Climate Innovation Fund(CIF)1 Appendix Appendix A 85 Appendix B 86#sustainabilitychampi

7、ons 87 Reporting disclosure A key principle of our work is transparency.This report,published annually,includes 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 S

8、heet.Deloitte&Touche LLP performed a review relating to specified information within Section 1 of the Environmental Data Fact Sheet.Read about how we report in Appendix A.Foreword042023 highlights07How we work08OverviewReviewing our 2023 progress and learningsOverviewMicrosoft sustainabilityCustomer

9、 sustainabilityGlobal sustainabilityAppendixOur employees are at the core of our sustainability journey.Their passion and commitment catalyzes progress in every part of our business and their communities around the world.Images taken by employees are featured throughout the 2024 Environmental Sustai

10、nability Report.Captured by:Erika Basham Director of Sustainability Product Strategy,United States03 Overview Microsoft sustainability Customer sustainability Global sustainability Appendix 04 Foreword Accelerating innovation and partnership for people and the planet Brad Smith Vice Chair and Presid

11、ent Melanie Nakagawa Chief Sustainability Officer Four years ago,Microsoft committed that by 2030 we would become carbon negative,water positive,zero waste,and protect more land than we use.Since that announcement,we have seen major changes both in the technology sector and in our understanding of w

12、hat it will take to meet our climate goals.New technologies,including generative AI,hold promise for new innovations that can help address the climate crisis.At the same time,the infrastructure and electricity needed for these technologies create new challenges for meeting sustainability commitments

13、 across the tech sector.As we take stock as a company in 2024,we remain resolute in our commitment to meet our climate goals and to empower others with the technology needed to build a more sustainable future.“There is no issue today that connects everyone on the planet more than the issues around c

14、limate change.”At the end of last year,the world met in Dubai at COP28 to assess global sustainability progress.The results were sobering.The world is not on track to meet critical climate goals,and we see many of the worlds challenges reflected in our own situation.During the past four years,we hav

15、e overcome multiple bottlenecks and have accelerated progress in meaningful ways.As we report here,we are on track in several areas.But not in every area.We therefore are mobilizing to accelerate progress in areas where were not yet on track.In four areas we are on track,and in each of these we see

16、progress that has the potential to have global impact beyond our own sustainability work.These are:Reducing our direct operational emissions(Scope 1 and 2).Accelerating carbon removal.Designing for circularity to minimize waste and reusing cloud hardware.Improving biodiversity and protecting more la

17、nd than we use.At the same time,there are two areas where were not yet on track,and in each of these we are intensively engaged in work to identify and pursue additional breakthroughs.These are:Reducing our Scope 3,or indirect,emissions.Reducing water use and replenishing more water than we consume

18、in our datacenter operations.Even amid the challenges,we remain optimistic.Were encouraged by ongoing progress across our campuses and datacenters,and throughout our value chain.Even more,were inspired by the scores of executives and employees across Microsoft who are rolling up their sleeves and id

19、entifying new and innovative steps that are helping us to close critical gaps.We all recognize the same thing:there is no issue today that connects everyone on the planet more than the issues around climate change.We all need to succeed together.Carbon negativeOur carbon negative commitment includes

20、 three primary areas:reducing carbon emissions,increasing use of carbon-free electricity,and carbon removal.We made meaningful progress on carbon-free electricity and carbon removal in FY23.Microsoft has taken a first-mover approach to supporting carbon-free electricity infrastructure,making long-te

21、rm investments to bring more carbon-free electricity onto the grids where we operate.Foreword continued In 2023,we increased our contracted portfolio of renewable energy assets to more than 19.8 gigawatts(GW),including projects in 21 countries.In FY23,we also contracted 5,015,019 metric tons of carb

22、on removal to be retired over the next 15 years.We are continuing to build a portfolio of projects,balanced across low,medium,and high durability solutions.Carbon reduction continues to be an area of focus,especially as we work to address Scope 3 emissions.In 2023,we saw our Scope 1 and 2 emissions

23、decrease by 6.3%from our 2020 baseline.This area remains on track to meet our goals.But our indirect emissions(Scope 3)increased by 30.9%.In aggregate,across all Scopes 13,Microsofts emissions are up 29.1%from the 2020 baseline.The rise in our Scope 3 emissions primarily comes from the construction

24、of more datacenters and the associated embodied carbon in building materials,as well as hardware components such as semiconductors,servers,and racks.Our challenges are in part unique to our position as a leading cloud supplier that is expanding its datacenters.But even more,we reflect the challenges

25、 the world must overcome to develop and use greener concrete,steel,fuels,and chips.These are the biggest drivers of our Scope 3 challenges.We have launched a company-wide initiative to identify and develop the added measures well need to reduce our Scope 3 emissions.Leaders in every area of the comp

26、any have stepped up to sponsor and drive this work.This led to the development of more than 80 discrete and significant measures that will help us reduce these emissions including a new requirement for select scale,high-volume suppliers to use 100%carbon-free electricity for Microsoft delivered good

27、s and services by 2030.As a whole,this work builds on our multi-prong strategy,this year focusing on the following:1Improving measurement by harnessing the power of digital technology to garner better insight and action.2 Increasing efficiency by applying datacenter innovations that improve efficien

28、cy as quickly as possible.3 Forging partnerships to accelerate technology breakthroughs through our investments and AI capabilities,including for greener steel,concrete,and fuels.4 Building markets by using our purchasing power t o accelerate market demand for these types of breakthroughs.5 Advocati

29、ng for public policy changes that will accelerate climate advances.Water positive We take a holistic approach to becoming water positive,which includes water access,replenishment,innovation,reduction,and policy.In 2023,we achieved our water access target by providing more than 1.5 million people wit

30、h access to clean water and sanitation solutions.We contracted water replenishment projects estimated to provide more than 25 million m3 in volumetric water benefit over the lifetime of these projectsenough water to fill about 10,000 Olympic sized swimming pools.Finally,we continue to drive innovati

31、on in water,through first-of-their kind replenishment projects like FIDO,which leverages AI-enabled acoustic analysis to reduce water loss from leakage.Looking ahead,as our datacenter business continues to grow,so does the need to minimize our water consumption and replenish more than we consume in

32、these operations.In FY23 our progress on water accelerated,and we know we need to implement an even stronger plan to accelerate it further.We therefore are investing in our water positive commitment in four ways:1 We are taking action to reduce the intensity with which we withdraw resources by conti

33、nuing to design and innovate in order to minimize water use and achieve our intensity target.2 Our new datacenters are designed and optimized to support AI workloads and will consume zero water for cooling.This initiative aims to further reduce our global reliance on freshwater resources as AI compu

34、te demands increase.3 We are partnering to advance water policy.In 2023,we joined the Coalition for Water Recycling.Over the coming year we will finalize a position and strategy for water policy.4 We are developing innovative scalable replenishment projects in high water stress locations where we op

35、erate datacenters.We recently announced Water United,a new initiative to unite public and private sectors in reducing water loss from leakage across the Colorado River Basin.Zero waste Our journey to zero waste includes reducing waste at our campuses and datacenters,advancing circular cloud hardware

36、 and packaging,and improving device and packaging circularity.In FY23,we achieved a reuse and recycle rate of 89.4%for servers and components across all cloud hardware,a target that is increasingly important as needs for cloud services continue to grow.In 2023,we also diverted more than 18,537 metri

37、c tons of waste from landfills or incinerators across our owned datacenters and campuses,and we reduced single-use plastics in our Microsoft product packaging to 2.7%.O v e r v i e w 0 5 Microsoft sustainabilityCustomer sustainabilityGlobal sustainabilityAppendixMicrosoft sustainabilityCustomer sust

38、ainabilityGlobal sustainabilityAppendixOverview 06 Foreword continued From expanding our Circular Centers to piloting programs that give a second life to used fiber optic cables through partnerships with local technical schools,we are working to keep materials in use longer and approach our work at

39、every stage with circularity in mind.We are accelerating our work to reuse and recycle cloud hardware wherever possible,and launched two new Circular Centers in Quincy,Washington and Chicago,Illinois in 2023.Protecting ecosystems We have committed to protect more land than we use by 2025,while prese

40、rving and restoring ecosystems in the areas where we live and work.As of FY23,we exceeded our land protection target by more than 40%.At this point,15,849 acres of land have been legally designated as permanently protected compared to our goal of 11,000 acres.We are incorporating green business prac

41、tices that support the surrounding ecosystems near our campuses and datacenters.This includes regenerative design solutions around our datacenters that enhance local biodiversity,improved stormwater management,and contributing to climate resilience.We are also piloting AI-driven Microsoft technology

42、 to provide insights into the overall health of the ecosystem and inform future actions.Customer and global sustainability In last years Environmental Sustainability Report,we announced that we were expanding our ambition to help advance sustainability for our customers and the world.In 2023,we cont

43、inued this work to empower our customers and partners on their own sustainability journey by creating the technology needed to better manage resources and optimize systems.On a global scale,we focused on accelerating innovation,research,and policy,not only for ourselves but also to support a more su

44、stainable world for all.The shift from pledges to progress requires action,transparency,and accountability.Microsoft Cloud for Sustainability is helping customers unify data and garner richer insights into the sustainability of their business.In 2023,we expanded Microsoft Sustainability Manager to i

45、nclude Scopes 1,2,and all 15 categories of Scope 3 carbon emissions to help track progress and inform action across an organizations operations and value chains.As the world experiences worsening impacts of climate change,we are also helping to put planetary data into the hands of researchers,govern

46、ments,companies,and individuals through the Planetary Computer.We are providing open access to petabytes of environmental monitoring data to help empower people with actionable information to protect their communities.Microsofts sustainability progress requires global engagement.We are investing in

47、innovative solutions,advancing research,and advocating for policies that we believe can drive progress at scale.A hallmark of this effort has been our Climate Innovation Fund(CIF)our$1 billion commitment set in 2020 to advance innovation beyond Microsofts four walls.To date the CIF has allocated$761

48、 million toward innovative climate technologies1 including commercial direct air capture technologies,sustainable aviation fuel(SAF),industrial decarbonization,and more.Our science,research,and AI for Good teams are also working to accelerate solutions and develop climate resilience with AI.In Novem

49、ber 2023,we published a whitepaper and playbook that expands on the incredible potential of AI for sustainability.Through our AI for Good team,we are collaborating with the United Nations to research the use of AI to advance the Early Warning for All Initiative,with a goal of better understanding th

50、e populations that may be at risk of extreme weather events and other threats.“The shift from pledges to progress requires action,transparency,and accountability.”Last year,Microsoft CEO Satya Nadella called climate change“the defining issue of our generation.”To meet this generational challenge,we

51、are putting sustainability at the center of our work.With each emerging technology,with each new opportunity,we ask ourselves an important question:how can we advance sustainability?As we strive to answer that question,we are developing new approaches,experimenting with new partnerships,and learning

52、 as we go.We are optimistic about the role technology can continue to play in accelerating climate progress,and we look forward to working with others on this critical journey for all of us.Brad Smith Vice Chair and President Melanie Nakagawa Chief Sustainability Officer Overview Microsoft sustainab

53、ility Customer sustainability Global sustainability Appendix 07 2023 highlights Carbon Total renewable electricity use in FY23 23.6 million MWhThis would be enough to power Paris with renewable electricity for about two years.19.8 gigawatts(GW)of renewable energy assets were contracted,including pro

54、jects in 21 countries around the world.We contracted 5,015,019 metric tons of carbon removal in FY23,and continue to build a portfolio of projects,balanced across low,medium,and high durability solutions.Water Total contracted water replenishment since 2020 61.7 million m3 This is enough water to fi

55、ll over 24,000 Olympic sized swimming pools.We met our water access target by providing more than 1.5 million people with access to clean water and sanitation solutions.Our new datacenters are designed and optimized to support AI workloads and will consume zero water for cooling.Waste Total amount o

56、f solid waste diverted from landfills and incinerators FY23 18,537 metric tons This is equivalent to the weight of over 45 commercial passenger jets.18,537 metric tons of solid waste were diverted from landfills and incinerators across our owned datacenters and campuses.Our reuse and recycle rates o

57、f servers and components across all cloud hardware reached 89.4%in FY23.We reduced single-use plastics in our Microsoft product packaging to 2.7%in FY23.Ecosystems Total amount of land protected in FY23 15,849 acresThis is equivalent to over 9,000 soccer pitches.15,849 acres were designated as perma

58、nently protected.We exceeded our land protection target of 11,000 by more than 40%.Through the Microsoft Datacenter Community Environmental Sustainability program we are responding to local needs in the communities that host Microsoft datacenters and where our employees live and work.Overview Micros

59、oft sustainability Customer sustainability Global sustainability Appendix 08 How we work Our sustainability journey starts with getting our own house in order.In 2020,we set bold targets to be a carbon-negative,water-positive,zero-waste company that protects ecosystems by 2030.We are committed to sh

60、aring our progress,challenges,and learnings through our annual Environmental Sustainability Report to help accelerate global progress toward net zero.We recognize that our actions alone will not solve the climate crisis.As a global technology provider,we also believe we have a role to play in suppor

61、ting the thousands of customers and partners who put their trust in Microsoft.We think about Microsofts role in sustainability through three spheres of influence:Microsoft sustainability,customer sustainability,and global sustainability.Microsoft sustainability:Taking care of our own environmental f

62、ootprint Our sustainability work starts with taking accountability for our operational footprint.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 life cycle of assets and produc

63、ts,from design to building,usage,and end of life.We are committed to sharing our learnings,accelerating markets,scaling solutions across our value chain,and being transparent about our progress.Customer sustainability:Delivering digital technology for net zero Microsoft is committed to providing inn

64、ovative digital technology to help build a more sustainable world.From managing environmental footprints with Microsoft Cloud for Sustainability to accelerating innovation for new climate technologies,were working to empower our customers and partners across industries.We are advancing greener softw

65、are and reducing carbon intensity to improve device sustainability,and helping organizations measure and manage the health of the planets natural ecosystems with the Microsoft Planetary Computer.Global sustainability:Enabling a more sustainable world Microsofts actions alone cannot solve the climate

66、 crisis.As a global technology leader,we are also committed to helping build the enabling societal conditions that will support a net zero economy.Were focused on accelerating the availability of new climate technologies,strengthening our climate policy agenda,helping to develop a more reliable and

67、interoperable carbon accounting system,advocating for skilling programs to expand the green workforce,and working to help enable a just energy transition.Overview Microsoft sustainability Carbon Water Waste Customer sustainability Global sustainability Appendix Ecosystems Microsoft sustainability Ho

68、w are we addressing our environmental footprint?Our sustainability work starts with taking accountability for our operational footprint.In 2020,we made a bold set of commitments:to be a carbon negative,water positive,zero waste company that protects ecosystemsall by 2030.We are committed to sharing

69、our learnings,accelerating markets,scaling solutions across our value chain,and being transparent about our progress.Carbon 10 Water 23 Waste 35 Ecosystems 46 Captured by:Emilia Zamora Sourcing Engineer,United States09 10Overview Microsoft sustainability Customer sustainability Global sustainability

70、 Appendix 10 Carbon Water Waste Ecosystems Getting to carbon negative Carbon Improving the measurement and efficiency of our operations 14 Building markets and driving progress 18 Learnings and whats next 22 Our approach Our commitment to becoming carbon negative requires unprecedented innovation an

71、d partnership.Over the last four years since setting our sustainability targets,thousands of companies have also joined the call to reach a net zero future and are taking steps,big and small,to help make that future a reality.This year,technologies like AI brought renewed promise of the role innovat

72、ion can play in accelerating progress.From improving measurement to increasing datacenter efficiency and improving energy transmission,technology can be a powerful accelerant for the pace and scale the world needs to achieve net zero.Amid this optimism,we face the realities of the complexity of the

73、challenge.Addressing Scope 1,2,and 3 emissions requires partnership and systemic action.We need to decarbonize supply chains and take action to build the carbon-free electricity infrastructure needed by Microsoft,our suppliers,our partners,and the world.In FY23 our emissions increased by 29.1%across

74、 Scope 1,2,and 3 from our 2020 baseline,as we continue to invest in the infrastructure needed to advance new technologies.Since 2020,our Scope 1 and 2 emissions have decreased by 6%.This result is driven by our ongoing work to advance clean energy procurement,green tariff programs,and use of unbundl

75、ed renewable energy certificates.Scope 3 accounts for over 96%of our total emissions,which includes emissions from our supply chain,the life cycle of our hardware and devices,and other indirect sources.Our Scope 3 emissions continue to be our most significant decarbonization challenge.Progress will

76、take deep collaboration across industries.Microsoft has taken a first-mover approach,making long-term investments to bring more carbon-free electricity onto the grids where we operate,and we continue to advocate for the expansion of clean energy solutions around the world.5M In FY23,we contracted 5,

77、015,019 metric tons of carbon removal to be retired over the next 15 years.11Overview Microsoft sustainability Customer sustainability Global sustainability Appendix 11 Carbon Water Waste Ecosystems Our approach continued Our journey to carbon negative We are committed to being carbon negative by 20

78、30 and by 2050 to 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.Working to help decarbonize the industrial sector At Microsoft,we are also partnering to address carbon-

79、intensive industries such as building materials,chemical products,and fossil fuels for aviation,shipping,and trucking.Our targets Reducing direct emissions We will reduce our Scope 1 and 2 emissions to near zero by increasing energy efficiency,decarbonization of our operations,and reaching 100%renew

80、able 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%of our electricity consumption will be matched by zero carbon energy purchases 100%of the time.Removing the r

81、est 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 operational emissions.Our progress Scope 1 and 2 emissions Our Scope 1 and 2 emissions decreased by 6%from the 2020 base year.This result is driven

82、 by our ongoing work to advance clean energy procurement,green tariff programs,and use of unbundled renewable energy certificates.Scope 3 emissions Our value chain or Scope 3 emissions increased by 30.9%from our 2020 baseline.Microsoft continues to work to scale corporate clean energy purchases acro

83、ss our supply chain and invest to help decarbonize hard-to abate industries,including steel,concrete,and other building materials used in our datacenters.19.8 GW of carbon-free energy In 2023,we increased our contracted portfolio of renewable energy assets to over 19.8 gigawatts(GW),including projec

84、ts in 21 countries around the world.5M metric tons of carbon removal We contracted 5,015,019 metric tons of carbon removal in FY23.We are continuing to build a portfolio of projects,balanced across low,medium,and high durability solutions.12Overview Microsoft sustainability Customer sustainability G

85、lobal sustainability Appendix 12 Carbon Water Waste Ecosystems Our approach continued Carbon Table 1Breaking down our FY23 Scope 3 emissions by source Microsofts Scope 3 emissions continue to account for more than 96%of our total emissions,with the vast majority of these emissions coming from two ca

86、tegories upstream,Purchased Goods and Services(Category 1)and Capital Goods(Category 2),and one downstream,Use of Sold Products(Category 11).Scope 2 and 3 emissions included in this chart are market-based.Scope 3 emissions are management criteria values.Find out more in our Data Fact Sheet123411Scop

87、e 3 CategoriesPurchased Goods&Services 36.23%1Capital Goods38.24%2Fuel-and Energy-RelatedActivities(Market-Based)3.39%3Upstream Transportation1.99%4Waste0.05%5Business Travel0.81%6Employee Commuting1.22%7Downstream Transportation0.45%9Use of Sold Products14.05%11End of Life of Sold Products0.03%12Do

88、wnstream Leased Assets0.05%13Scope 22.56%Scope 10.94%136Scope 396.50%57912 13Overview Microsoft sustainability Customer sustainability Global sustainability Appendix 13 Carbon Water Waste Ecosystems Our approach continued Carbon Table 2Tracking progress toward carbon negative by 2030 Microsofts over

89、all emissions increased by 29.1%in FY23,in relation to our base year.Additionally,we retired 605,354 metrics tons of carbon removal as part of achieving our annual target to be carbon neutral.-6M-3M 0M 3M 6M 9M 12M 15M Retirements fromcarbon removalE EEE E Projected carbon removalF F Target carbon e

90、missionsG G Scope 3 A Scope 2 B Retirements fromavoided emissionsD D Scope 1 C A A A A B C B C B C B C Metric tons CO2e FY21 FY22 FY23 Current year FY30 Target year FY20 Base year Find out more in our Data Fact SheetKey definitions Carbon-free electricity(CFE)Microsoft refers to the broader suite of

91、 technologies compatible with a fully decarbonized electricity system as CFE.CFE technologies include solar,geothermal,sustainable biomass,hydropower,nuclear,carbon capture utilization and storage,and others with zero direct emissions.Renewable energy Electricity technologies including wind,solar,ge

92、othermal,sustainable biomass,and sustainable hydropower.2 Scopes 1,2,and 3 Indirect emissions from all other activities up and down the value chain such as upstream and downstream transportation,materials,and end-of-life impacts,as well as all suppliers direct Scope 1 and 2 emissions.Scope 3 represe

93、nts over 96%of Microsofts annual emissions in FY23.Our Scope 3 emissions result primarily from the operations of our tens of thousands of suppliers(upstream)and the use of our products across millions of our customers(downstream).Tackling Scope 3 means decarbonizing industrial processes such as stee

94、l,concrete,and other building material production for use in our campus and datacenter construction,as well as jet fuel for business travel and logistics.Scope 1 Direct emissions created by a companys activities Scope 2 Indirect emissions from the consumption of the electricity or heat we use Scope

95、3 Indirect emissions from all other activities in which were engaged Since setting our targets in 2020,data has played an increasingly important role in our journey by allowing us to better measure and manage our resource consumption.14Overview Microsoft sustainability Customer sustainability Global

96、 sustainability Appendix 14 Carbon Water Waste Ecosystems Improving the measurement and efficiency of our operations Reducing the carbon intensity of our operations is the first pillar of our approach to carbon negative.From the construction of our datacenters and campuses to our daily operations,ef

97、ficiency is built into our design and use.Since setting our targets in 2020,data has played an increasingly important role in our journey by allowing us to better measure and manage our resource consumption.At Microsoft,we strengthened our supply chain methodologies in 2023 to drive progress in majo

98、r sectors like building materials,sustainable aviation fuel,and hardware.Datacenter efficiency Measuring efficiency Power usage effectiveness(PUE)is a ratio that describes how efficiently a datacenter uses energy.The lower the number,the better the score.We design and build Microsoft datacenters as

99、close to a PUE of 1.0 as possible.This year our datacenters delivered a design rating of 1.12 PUE and,with each new generation,we will strive to be even more efficient.Transitioning servers to a low-power state We continue to seek opportunities to reduce server energy consumption.Using low-power ser

100、ver states,we observed a reduction in energy usage of up to 25%on unallocated servers,with a corresponding reduction in Scope 2 emissions.This year,we expanded our deployment of this technique from a few thousand servers in 2022 to around one million by the end of 2023.This initiative reduces energy

101、 usage by thousands of megawatt-hours per month across our global datacenters.A similar initiative targets servers that are awaiting maintenance,reducing energy usage by hundreds of megawatt-hours per month.We support carbon-free electricity infrastructure through procurement and investment.Improvin

102、g resource utilization Datacenter resources are traditionally designed and built to accommodate peak power demands,often resulting in underutilization and the necessity to construct new datacenters.Microsoft is focused on improving datacenter efficiency by minimizing peak power consumption,effective

103、ly harnessing unused power,and maximizing server density within existing datacenters.This is achieved through power harvesting driven by service level agreements(SLAs),intelligent power-aware workload allocation,and utilizing the inherent redundancy in Microsoft internal services to tap into datacen

104、ter capacity that is conventionally reserved for use only during power grid or infrastructure failures.In 2023,these initiatives have directly contributed to a roughly 7%reduction in datacenter power infrastructure and the associated embodied carbon.Microsoft is also increasing server utilization by

105、 oversubscribing central processing unit(CPU)cores of internal workloads that have low CPU utilization.The direct impact in 2023 was an approximately 1.5%reduction in datacenter hardware needs for the Microsoft Azure platforman improvement of three times over 2022 with a proportional reduction in as

106、sociated embodied carbon.15Overview Microsoft sustainability Customer sustainability Global sustainability Appendix 15 Carbon Water Waste Ecosystems Improving the measurement and efficiency of our operations continued Building operations and construction Infrastructure decarbonization Our sustainabi

107、lity standards for new construction continue to expand to meet our climate goals.New campus projects require the procurement of high-efficiency refrigeration systems,all-electric kitchens and mechanical systems,and non-fossil-fuel-powered backup power systems.Combustion is no longer permitted for da

108、ily use in any new office construction project in our standard.We have also expanded our requirements to reduce embodied carbon in interior materials.76.5%In FY23,76.5%of our total emissions originated from our suppliers.We believe Microsoft also has a role to play in bringing the global supply chai

109、n with us on our journey to net zero.Innovations in low-carbon concrete To minimize our carbon impact in constructing datacenters,we build our datacenters to meet LEED Gold certification,with 37 datacenters already meeting this goal globally.3 LEED buildings also use less water,utilize renewable ene

110、rgy and fewer resources,create less waste,and preserve land and habitat.One example of innovation in this area is a series of pilots completed this year using a net-negative embodied carbon limestone alternative to traditional concrete.Derived from algae cultivation in concert with other alternative

111、 cementitious materials,the combination yielded a concrete mix that met our performance requirements and achieved an estimated 65%embodied carbon reduction from conventional concrete of a similar strength.Fleet electrification On Microsoft campuses around the world,we are making progress toward elec

112、trifying our fleet and eliminating dependence on fuel burning vehicles.To establish the infrastructure needed to support our goal of operating a 100%electric fleet by 2030,were constructing an Electric Vehicle Fleet Facility that will house,charge,and maintain our electric commute fleet of the futur

113、e at our Redmond headquarters.The project is currently in the design phase and is pursuing LEED Platinum certification.Additionally,an underground garage is set to be completed in FY24 as part of our Redmond campus modernization project and will include 130 EV charging stations with 176 additional E

114、V charging stations planned for future phases.As we continue to electrify our global fleet by 2030,these projects will help us test and implement our EV infrastructure and apply it to more campuses across the globe.Improve measurements across our supply chain While we know that the majority of our e

115、missions are from Scope 3,over 96%in 2023,we also needed greater precision on the drivers contributing to these emissions.What we found is that these emissions have three primary,interrelated drivers:1Electricity use in both upstream embodied in what we purchase,and downstream from the usage of our

116、products.2 Key material procurement including semiconductors,steel,cement,aluminum,and plastics.3 Fuel use from direct travel,commuting,logistics,and embodied in what we purchase.4 Achieving net zero is not something we can do alone.As 76.5%of our total emissions originate from our suppliers,we have

117、 a role to play in bringing the global supply chain with us on our journey to net zero.By leaning into education and investing in meaningful tools for carbon reduction,we can move these efforts up the supply chain tier.We are working to scale carbon accounting methodologies to drive progress across

118、our supply chain.16Overview Microsoft sustainability Customer sustainability Global sustainability Appendix 16 Carbon Water Waste Ecosystems Improving the measurement and efficiency of our operations continued Partnering with our suppliers Access to granular emissions data from our supply chain is e

119、ssential to identifying where our largest Scope 3 reduction opportunities exist and how these can be actioned.To understand the full extent of our Scope 3 carbon footprint,we piloted a new feature in Microsoft Sustainability Manager called the environmental,social,and governance(ESG)value chain solu

120、tion.In 2023,Microsoft Procurement acted as customer zero,as we used our own technology and utilized the ESG value chain solution as its disclosure platform to successfully collect emissions from top in-scope suppliers.Additionally,due to the flexibility the ESG value chain solution offers,the Procu

121、rement Sustainability team was able to customize the platform to collect more advanced,granular emissions data from suppliers.In the future,the ESG value chain solution will enable customers to customize and collect detailed emissions data directly from suppliers.Advancing procurement of carbon-free

122、 electricity When we identified a near-term need to support suppliers in decarbonizing their electricity consumption,especially our smaller-to medium-sized suppliers who traditionally lack the expertise and resources to navigate this process on their own,we partnered with climate solutions expert 3D

123、egrees to launch Supplier REach,a renewable electricity portal.The portal assists with Microsoft supplier evaluation and procurement of high-quality carbon-free electricity options based on factors such as their geography and energy load.Reducing emissions in Cloud Logistics In 2023,the Cloud Logist

124、ics team implemented a three-pillar strategy for emissions reduction:1 Apply industry-leading data models,based on the Global Logistics Emissions Council(GLEC)Framework,to obtain detailed emissions data for each shipment.This“digital twin”of our operations data earned us a finalist spot in Gartners

125、2024“Power of the Profession”award.2 Utilize data to optimize our supply chain,identifying efficiency gains that helped us avoid over 90,000 mtCO2e emissions.These savings were achieved by shifting cargo to more carbon-efficient transportation modes,consolidation,and network design.3 Drive transform

126、ational solutions in trucking,shipping,and aviation.In partnership with our largest transportation service providers,we have enabled them to source low-carbon or carbon-free logistics services.This led to the successful deployment of electric vehicles and sustainable fuels.To further our goal of sus

127、tainable transportation,we joined collaborations like the Sustainable Aviation Buyers Alliance(SABA)and we have launched a new initiative with cargo-owning peers and suppliers that plans to build the first electric interstate trucking corridor in the United States.Measuring semiconductor emissions D

128、riving targeted Scope 3 emission reductions requires more precise measurement.For semiconductors,this means measuring emissions drivers down to the square centimeter of silicona unit of measure required for life cycle assessment(LCA)-based methodologiesand applying product-specific emissions factors

129、.We modeled this for all high-impact components installed and sold by Microsoft.This advancement,which reflects Microsofts application of leading-edge research findings from imecs Sustainable Semiconductor Technologies and Systems(SSTS)program,enables us to quantify which specific products,manufactu

130、rers,geographic locations,and production stages are driving emissions.This specificity deepens our supplier engagement efforts and focuses our policy and advocacy discussions.90K By using data to optimize our logistics supply chain,90,000 mtCO2e emissions were avoided.RY to source imageof constructi

131、on17Overview Microsoft sustainability Customer sustainability Global sustainability Appendix 17 Carbon Water Waste Ecosystems Improving the measurement and efficiency of our operations continued LinkedIn Our teams at LinkedIn have developed Healthy&Sustainable Building Materials specifications to gu

132、ide our Workplace Design and Build team.We have also provided input to and utilized the Embodied Carbon in Construction Calculator(EC3)for identification and evaluation of the carbon intensity of workplace construction materials alternatives.We have piloted a variety of initiatives,including electri

133、fied kitchens in four sites,battery back-up and solar installation in one site,and installation of fault detection diagnosis(FDD)in one site.We also conducted a battery versus generator carbon life cycle study.Expanding campus initiatives At our LinkedIn campus in Omaha,Nebraska,we have been accessi

134、ng direct renewable energy through our parking canopy solar installation since July 2022.In FY23,this solar installation project provided approximately 17%of the buildings total electricity,including helping to power the all-electric kitchen.Reducing carbon through our food programs At LinkedIn,we a

135、re committed to reducing the carbon footprint of our food program and have implemented various initiatives to achieve that goal.One of the key strategies employed to reduce Scope 3 emissions of suppliers purchased foods in FY23 was to increase local purchasing of agricultural products to,or above,20

136、%of total purchasing spend,while partnering with regional producers focused on climate-smart agricultural practices and regenerative farming.Mitigating carbon impacts of travel We have also implemented an employee-facing travel solution called Tripkicks which supports our corporate sustainability in

137、itiatives.In partnership with BCD and Advito,Tripkicks allows employees to better understand their carbon impact before they travel.As employees plan their trips,they are able to see accurate and ISO-Certified carbon dioxide figures,powered by Advitos GATE4 carbon emissions methodology,for each flig

138、ht option,identifying the most sustainable options.Reducing the impact of our supply chain Building transparency Collaboration across Microsoft has led us to adapt an effective approach to shift from spend-to process-based methodologies for measuring embodied carbon impact of construction materials.

139、This methodology is based on a framework using todays best available third-party verified data via Building Transparencys EC3 tool.This new methodology aims to appropriately incorporate actual global warming potential of the materials we buy,where data is available,with existing spend-based methodol

140、ogies,as we work to improve our Scope 3 measurement and emissions.Greenhouse Gas Protocol In 2023,we submitted responses to four Greenhouse Gas Protocol(GHGP)surveys that kicked off GHGPs comprehensive review of its corporate carbon accounting guidance.Microsofts survey responses articulated a visio

141、n for more accurate,consistent,impact-relevant carbon accounting.We also published a white paper laying out Microsofts approach,challenges,and innovations with respect to carbon accounting.Cognitive visual learning To improve data quality and reduce manual entry errors,we have been developing a cogn

142、itive visual learning(CVL)tool in partnership with the Microsoft Finance team.The CVL AI tool will be capable of automatically reading utility invoices(such as PDFs,Excel files,or image files)in any language and extracting the required data.Ultimately,this innovative tool will streamline reporting o

143、n our utility consumption and replace a time-consuming third-party application that is subject to manual error.18Overview Microsoft sustainability Customer sustainability Global sustainability Appendix 18 Carbon Water Waste Ecosystems Building markets and driving progress The ability of Microsoft an

144、d the technology sector to meet net zero targets is dependent on our collective ability to procure carbon-free electricity and decarbonize our supply chains.Microsoft continues to build and scale carbon-free electricity through our procurement of renewable energy and investing to bring more carbon-f

145、ree electricity onto the grids where we operate.As one of the largest corporate purchasers of renewable energy,we continue to seek ways to diversify and scale-up supply of impactful renewable energy and mechanisms enabling access for all.6.6 MW We are partnering with Clearloop to help decarbonize th

146、e grid in the Mississippi Delta region,enabling a 6.6-megawatt project.Building markets Accelerating carbon-free electricity circularity Microsofts unique position as one of the worlds largest corporate renewable energy purchasers provides the opportunity and responsibility to help facilitate a circ

147、ular economy in the renewable energy sector.Our leadership is enabling and supporting the market due to the scale of our procurement,laying the foundations for renewable energy infrastructure reuse and recycling,concurrently addressing environmental,community,and supply chain challenges.In advancing

148、 a circular economy for all,we follow three principles:1Requiring recycling of renewable energy infrastructure.2 Requiring recycled materials in renewable energy infrastructure manufacturing.3 Using our voice on circular economy for renewable energy public policy.Sustainability Champion:John Tien At

149、 Microsoft,I play a role in achieving our sustainability goals by working with suppliers to implement best practices and technology solutions in the sourcing of memory semiconductors.The positive impact of these efforts on Microsoft,our customers,and the planet inspires me to believe that we all hav

150、e the power to make a difference,both in our personal and professional lives.Procuring carbon-free electricity Incorporating environmental justice principles into our carbon-free electricity procurement,we partnered with EKOenergys Climate Fund to enable the installation of solar-powered refrigerati

151、on for a Kenyan fishing village,offering ice and clean water at 20%lower prices for 2,000 households and addressing food security and economic hardship by reducing fish harvest loss.We have begun embedding community funds in global power purchase agreements(PPAs)for example,a 366-MW renewable energy

152、 deal in Ireland with European developer Statkraft includes such a fund to support local community needs.We also partnered with Clearloop to expand equitable access to clean energy and help decarbonize the grid in the Mississippi Delta region,enabling a 6.6-megawatt project in Mississippi through an

153、 upfront payment for long-term renewable energy credits.Microsoft helped get the project online and provided support for Clearloops model.19Building markets and driving progress continuedOverview Microsoft sustainability Customer sustainability Global sustainability Appendix 19 Carbon Water Waste Ec

154、osystems Building markets and driving progress continued Advancing carbon dioxide removal(CDR)At Microsoft,we continue to support the development of carbon removal.In FY23 we accelerated procurement of various pathways,building on our long-term agreement framework.We worked through the details in ea

155、ch of those agreements to make sure we are building this first generation of large-scale carbon dioxide removal projects to be as impactful as possible.These multi-year agreements draw on our renewable energy procurement experience and are structured to help projects obtain external financing.Our ca

156、rbon removal contracts reflect general industry risks along with the specifics of individual projects to ensure we are buying additional,durable,measurable,and net negative carbon credits.As we fill our balanced portfolio of greater than 5 million metric tons a year starting in 2030,we are also buyi

157、ng novel solutions,for example enhanced rock weathering,to test what else will be ready for scale by 2030.5M In FY23,we procured 5.015 million metric tons of carbon removal in support of our carbon neutral and negative targets.Progressing towards 2030 In FY23,we contracted 5,015,019 metric tons of c

158、arbon removal to be retired over the next 15 years.Many of these projects entail multi-year commitments to carbon removal.Altogether we expect our contracts signed as of December 2023 to provide 875,000 metric tons toward our 2030 goal of greater than 5 million metric tons.Projects signed in 2023 in

159、clude the following.Reforestation in the Amazon:In November 2023,we signed a long-term offtake with Mombak for carbon removal from reforestation in the Brazilian Amazon.We believe Mombaks best-in-class project design and work to bolster a crucial carbon sink and biome represent an extraordinary win

160、for the climate and local communities.Carbon Table 3Tracking progress toward carbon negative by 2030 In FY23,we procured 5.015 million metric tons of carbon removals.Carbon removal contracted each year includes credits retired in the same year and to be retired in future years,in support of our annu

161、al in-year carbon neutrality and 2030 carbon negative targets.0M 1M 2M 3M 4M 5M 6M Breakdown Total metric tons contracted Annual in-year neutrality target 2030 carbon negative target 5,015,019 1,465,7773,549,242 Metric tons Find out more in our Data Fact Sheet 20Overview Microsoft sustainability Cus

162、tomer sustainability Global sustainability Appendix 20 Carbon Water Waste Ecosystems Building markets and driving progress continued Landmark BECCS in Europe:Our recent agreement with Orsted shows the near-term potential of bioenergy with carbon capture and storage(BECCS).This project will add carbo

163、n capture to an existing heat and power plant and then store the carbon dioxide geologically to provide significant carbon removals and anchor the high durability category this decade.Securing the sustainability of biomass for the Orsted project and future biomass-based pathways was a major focus an

164、d drove us to support Carbon Directs cross-sector work on this topic alongside Frontier Climate.We believe that the time for responsibly scaling BECCS is here and look forward to the coming wave of project developments.We support carbon-free electricity infrastructure through procurement and investm

165、ent.Scaling up carbon removal Heirloom direct air capture:Heirlooms next direct air capture(DAC)projects will prove their potential to scale towards the megatons per year that society needs this decade to stay on track for the goals of the Paris Agreement.Heirlooms technology of making and breaking

166、limestone to take carbon dioxide out of air is simplicity itself.Enhanced rock weathering:Our deals this year with UNDO and Lithos explore the novel carbon removal pathways that will reduce outstanding market uncertainties,and which could feasibly scale in the next several years.In addition to the s

167、cience of enhanced rock weathering(ERW),we note that innovative business models will be important to expand projects with such front-loaded costs.19.8 GW We increased our contracted portfolio of renewable energy assets to over 19.8 gigawatts.Supporting global progress Meeting our carbon negative goa

168、ls is tightly linked with global decarbonization.Supporting carbon-free electricity infrastructure through procurement and investment is critical to making this happen.Its a challenge that is bigger than any one company,but Microsoft has taken a first-mover approach,making long-term investments to b

169、ring more carbon-free electricity onto the grids where we operate.We continue to seek ways to diversify and scale-up supply of impactful renewable energy and mechanisms enabling access for all.Partnering to scale clean energy Microsoft partnership goals are threefold:achieve our own operational need

170、s,accelerate the development of technologies that will help our customers and partners,and rapidly increase the scale of the global sustainability market.In 2023,Microsoft increased its contracted portfolio of renewable energy assets to over 19.8 gigawatts(GW)across 21 countries.We signed new PPAs a

171、round the world,including with AES in Brazil,Constellation Energy in Virginia,Powerex in Washington,Contact Energy in New Zealand,and Lightsource bp in Poland.Microsoft is the first large commercial entity to use Powerexs wholesale 247 Clean Load Service for its new datacenter in Washington state.Un

172、der this agreement,Powerex will match Microsofts hourly datacenter demand with direct deliveries of carbon-free hydro,solar,and wind power on a 24-hour,year-round basissupplying reliable electricity to our datacenter while also supporting our 100/100/0 goal.During the hours that Microsofts contracte

173、d renewable resources produce more electricity than the datacenter can use,Powerex will take the surplus renewable power,allowing hydro generation to be reduced and water to be conserved for later use.This will enable clean deliveries back to this datacenter in later hours,when Microsofts contracted

174、 renewable resources produce less electricity than the datacenter needs.Microsoft and Helion announced an agreement to provide Microsoft with electricity from its first fusion power plant.The plant is expected to be online by 2028 and will target power generation of 50 MW or greater,dramatically sho

175、rtening the projected timeline for commercially viable fusion energy.The planned operational date for this first-of-its-kind facility is significantly sooner than typical projections for deployment of commercial fusion power.21Overview Microsoft sustainability Customer sustainability Global sustaina

176、bility Appendix 21 Carbon Water Waste Ecosystems Building markets and driving progress continued The Cajuina wind project Microsofts first power purchase agreement in Brazil(154 MW)is sourced from the Cajuina Wind Complex,developed by AES Brasil,and will be operated by an all-female operations and m

177、aintenance(O&M)team.AES Brasil is the first company in the country to have a wind farm operated and maintained locally by a team composed entirely of women.Deerfoot solar project The Deerfoot solar project in Canada(37 MW)is majority-owned(51%)by local First Nations,Chiniki and Goodstoney.This proje

178、ct is expected to generate economic returns for the Indigenous communities and contribute to the lasting prosperity of the Nations for future generations.The Skyward Community Solar project In Oregon,we signed on as the major commercial partner on the Skyward Community Solar project,a solar farm in

179、the Greater Portland area that generates nearly 3.6 million kilowatt-hours of clean energy each year.Clean electricity from the project is fed into the electric grid,replacing fossil fuels and reducing carbon emissions from our workplace operations.Investing in sustainable aviation fuel In 2023,Micr

180、osoft entered a 10-year contract with World Energy for sustainable aviation fuel(SAF)certificates,aiming to replace 43.7 million gallons of fossil jet fuel,and jointly funded a large-scale global SAF purchase with International Airlines Group(IAG).Additionally,Microsoft joined the Roundtable on Sust

181、ainable Biomaterials(RSB),contributing to RSBs sustainability framework and participating in programs supporting SAF development.Together with RSB and Alaska Airlines,Microsoft launched SAF-now.org,an educational resource designed to empower key decision makers with information on topics most releva

182、nt to choosing SAF.Advocating for clean energy infrastructure In August 2023,Microsoft hosted and participated in the Asia-Pacific Economic Cooperation(APEC)roundtable on GHG accounting standards on August 4 and the APEC Energy Ministers Meeting on August 15.Microsoft has a direct interest in an exp

183、anded and clean electric grid;with over 60 Azure regions operating now or coming soon,and more than 300 datacenters globally.Over half of these regions are in APEC economies.43.7M Microsoft entered a 10-year contract with World Energy for sustainable aviation fuel(SAF)certificates,aiming to replace

184、43.7 million gallons of fossil jet fuel.22Overview Microsoft sustainability Customer sustainability Global sustainability Appendix 22 Carbon Water Waste Ecosystems Learnings and whats next Growing the supply for clean energy will require policy advocacy Microsoft decarbonization policy advocacy is e

185、xpected to contribute to reducing our upstream emissions in two ways:1 Helping to create more direct corporate renewable procurement options in markets that are currently difficult to access,as in much of Asia-Pacific,thus increasing opportunities for reducing operational emissions in the near term.

186、2 Contributing to the enactment of policies that decarbonize the grids on which our suppliers operate.These efforts can help to reduce the amount of baseline emissions to be addressed through renewable procurement.Partnership and investment remains critical for Scope 3 emissions reduction Collaborat

187、ion remains critical to success,for Microsoft and our suppliers.While many of our suppliers are willing and want to reduce their footprints,they may still face considerable barriers like access to capital or market knowledge.As we work to achieve our own operational needs,we are also working to acce

188、lerate the development of solutions that will help our customers and partners,and rapidly increase the scale of global sustainability markets.Scaling markets for lower-carbon materials requires investment While lower-carbon building construction materials are on the market today,they do not exist at

189、 the volume,in the geographies,nor at the scale needed to decarbonize the sector.We continue to pursue key mitigations to embodied carbon risk through extensive collaboration across Microsoft datacenters.Our actions are focused on accelerating the uptake of low-embodied carbon solutions and driving

190、innovation through new building materials with the potential to drastically reduce embodied carbon from those materials.Building on our experience with other industrial sectors,we will use forward contracting mechanisms to spur the market supply of lower-carbon materials.Measurement plays an importa

191、nt role in Scope 3 reduction Driving Scope 3 reductions requires developing better data visibility and more accurate and actionable methodologies than are generally available today.With improved life cycle assessment(LCA)methodologies and detailed analysis of specific products,manufacturers,geograph

192、ic locations,and emissions life cycle stages,we are better able to understand the complexity of our supply chain and which tangible levers we can pull both with our suppliers and through policy.Additionally,we are exploring how technology,like AI and blockchain,can further increase accountability an

193、d traceability for our Scope 3 carbon emissions.Sharing our learnings to support global construction efforts With our Redmond campus modernization project still in progress,we are continuing to catalog emissions,carbon,water,and energy use data.This data will inform future construction and moderniza

194、tion efforts at Microsoft campuses globally.We will continue to share our learnings in hope that it inspires greater sustainability in constructionas well as transparency in reportingfrom other organizations large and small in the future.23Overview Microsoft sustainability Customer sustainability Gl

195、obal sustainability Appendix 23 Carbon Water Waste Ecosystems Getting to water positive Water Reduction 26 Replenishment 28 Access 30 Innovation 32 Policy 33 Learnings and whats next 34 Our approach Today,one in four people live in countries facing high water stress,a number that is expected to incr

196、ease to one in three by 2050.We believe Microsoft has an important role to play in protecting freshwater resources in the areas where we operate and around the world.We recognize that water reduction alone is not enough to address growing global water challengesreduction,replenishment,access,innovat

197、ion,and policy all play important roles in our water positive journey.In 2023,we continued to drive progress by focusing on accelerating solutions to water challenges through innovation and partnerships.In 2023,we nearly doubled our water replenishment portfolio,and met our 2030 water access target

198、to provide 1.5 million people with access to clean water and sanitation services.Our internal water fee continues to play a critical role in funding replenishment and access projects while providing an incentive to our business groups to reduce water use.Amid this progress,we also believe Microsoft

199、has a responsibility to support our customers and the world in addressing the water crisis.Investments made across Microsoft operations are made with a view to accelerating global progress.Our investments in innovation will help establish new approaches to reducing water consumption,and investments

200、in replenishment will help scale solutions and drive greater impact in the basins where we operate.1.5M In FY23,we met our water access target by providing more than 1.5 million people with access to clean water and sanitation solutions.24Overview Microsoft sustainability Customer sustainability Glo

201、bal sustainability Appendix 24 Carbon Water Waste Ecosystems Our approach continued Committing to improving water use efficiency As our datacenter business continues to grow,and we balance the need for power and water,Microsoft remains committed to reducing the intensity with which we withdraw resou

202、rces,focusing on being as efficient as possible.Our datacenter strategy puts us on track to achieve a 40%water intensity reduction target by 2030.We will continue to design and innovate to minimize water use and help break the relationship between AI growth and resource consumption.Five pillars of w

203、ater positive Reducing our water footprint across our direct operations Replenishing more water than we consume across our operations Increasing access to water and sanitation services Scaling water solutions through innovation and digitization Advocating for effective and innovative water policy Ke

204、ep community needs and impact at the forefront In 2023,we became more intentional about integrating environmental justice into our replenishment program.We aim to align our project investments with the needs and desires of the local communities and consider how we can support marginalized communitie

205、s while avoiding potential unintended consequences of projects that could cause harm to those communities.In 2023 we refreshed our criteria to ensure we keep environmental justice at the forefront of our replenishment investments and project assessment.We will continue to evolve our approach to meet

206、 the needs of the communities where we work.1Projects should not pose any potential health impacts on local communities.2 Community members should be involved in the decision-making process for projects that directly affect their communities.3 A process to address community concerns should exist for

207、 projects that directly affect those communities.4 Projects should consider the cultural and historical significance of the area and ensure that there are no impacts on cultural resources.We prioritize water replenishment projects that fit a basins unique needs.By partnering with credible organizati

208、ons that have an in-depth understanding of local community needs,we have the best likelihood of ensuring that we keep community impact at the forefront.25Overview Microsoft sustainability Customer sustainability Global sustainability Appendix 25 Carbon Water Waste Ecosystems Our approach continued O

209、ur journey to water positive As we work to be water positive,we continue to scale our efforts to reduce water use across our operations,while increasing procurement from alternative sources and investing in innovative replenishment and access projects.Our targets Replenishing more water than we use

210、by 2030 We will replenish more water than we consume across our global operations,with a focus on water-stressed regions where we work.Increasing access to water We will provide 1.5 million people with access to clean water and sanitation services by 2030.Reducing our water intensity We will make pr

211、ogress against our target to improve water use efficiency by 40%across our global,owned datacenter operations by 2030,from a 2022 baseline.Our progress 25.4 million m3 of water replenishment volume In FY23,we contracted for replenishment projects that are estimated to provide more than 25 million m3

212、 in volumetric water benefit over the lifetime of these projects.Since the inception of this program,projects contracted are estimated to provide more than 61 million m3 in volumetric water benefit.Over 1.5 million people with water access In FY23,we met our water access target by providing more tha

213、n 1.5 million people with access to clean water and sanitation solutions in Brazil,Chile,India,Indonesia,and Mexico.Improving water efficiency As of January 2024,we are on track to meet our 40%target.We remain focused on reducing the water intensity of our operations and will continue to report on o

214、ur progress in future sustainability reporting.25.4M In FY23,we contracted for replenishment projects that are estimated to provide more than 25.4 million m3 in volumetric water benefit.26Overview Microsoft sustainability Customer sustainability Global sustainability Appendix 26 Carbon Water Waste E

215、cosystems Reduction We take a holistic approach to water reduction across our campuses and datacenters to drive efficiency and reuse.Innovation is a thread that runs throughout our work toward our water positive commitment,like piloting innovative approaches to reduce our water use intensity,and pro

216、ject investments we make.50%Improvements as part of our Redmond campus modernization project are estimated to yield over 50%reduction in water use for new facilities.Advancing best practices In an ongoing effort to embed best practices into our methods,we have developed and implemented our Sustainab

217、ility Standards for new construction projects,including requirements that reflect each of Microsofts climate commitment targets.For water,project design teams now create a water budget and water reuse plan early in the design phase.The following updates are the latest in an ongoing effort to improve

218、 our construction standards and efficiency.A water budget quantifies and maps all water end uses and sources,potable and non-potable.This allows teams to target only non-potable sources for non-potable end-use and increase the use of recycled water and greywater.The new Sustainability Standards also

219、 require teams to develop a water reuse plan which outlines strategies to reduce,capture,and reuse water on the construction site,for example,capturing stormwater from sediment ponds to be used later for dust control and vehicle washing.Reducing water use at our campuses As part of our Redmond campu

220、s modernization project,weve implemented new infrastructure to significantly improve water use and reuse.These improvements are estimated to yield over 50%reduction in water use for the new facilities compared to pre-modernization.Indoors,we estimate a reduction in water use of over 7 million gallon

221、s annually,through implementing efficient features and constructing cisterns for rainwater capture.Outdoors,we estimate a reduction in irrigation water of over 30 million gallons annually,through planting native and adaptive vegetation as well as installing efficient irrigation systems.We estimate t

222、hat our Thermal Energy Center will help save over 10 million gallons of water per year.The Thermal Energy Center at our Redmond Campus uses several unconventional approaches to heat rejection,including geothermal heat exchange,heat recovery chillers,and water softening in its cooling towers.While th

223、ese water reduction strategies implemented through the Redmond campus modernization projects are impactful,they also represent important proofs-of-concept and testing grounds,helping us apply learnings and techniques to other campuses globally.Water Table 1Measuring our annual water consumption info

224、rms our replenishment targets In FY23,our water consumption increased in alignment with our business growth.This data from our operations informs the amount of water we need to replenish.See p28 for more information.0M 2M 4M 6M 8M Total water consumption Water m3 FY21 FY22 FY23 Current year FY20 Bas

225、e year 7,843,744 6,399,415 4,772,890 4,196,461 Find out more in our Data Fact Sheet 27Overview Microsoft sustainability Customer sustainability Global sustainability Appendix 27 Carbon Water Waste Ecosystems Reduction continued Maximizing cooling efficiency in existing datacenters In 2022,all owned

226、datacenters that use water for cooling underwent an audit to ensure operational values aligned with design expectations.Observed deviations were reviewed and corrected,which resulted in lower water and maximized water usage efficiency.Datacenter water withdrawal and discharge are closely tracked and

227、 used to monitor our water consumption.Additionally,we are developing advanced prediction models that anticipate water consumption based on real-time weather data.Comparing anticipated and actual consumption values helps quickly identify operational inefficiencies and provides the ability for advanc

228、ed troubleshooting.Our new datacenters are designed and optimized to support AI workloads and will consume zero water for cooling.This initiative aims to further reduce our global reliance on freshwater resources as AI compute demands increase.Innovations at datacenters In 2023,we expanded our usage

229、 of alternative water sources,such as reclaimed and recycled water,in Texas,Washington,California,and Singapore,further reducing our dependence on freshwater supply.We are harvesting rainwater to partially offset cooling and humidification needs at our Netherlands and Ireland datacenters,and to offs

230、et humidification at our Sweden datacenters.Rainwater harvesting is also part of the design for new datacenters in Canada,England,Finland,Italy,South Africa,and Austria.Our new datacenters are designed and optimized to support AI workloads and will consume zero water for cooling.We are reducing our

231、reliance on freshwater sources for our existing datacenters.28Overview Microsoft sustainability Customer sustainability Global sustainability Appendix 28 Carbon Water Waste Ecosystems Replenishment In FY23,we grew our water replenishment program significantly,adding rigor to our approach while nearl

232、y doubling the size of our portfolio.As of July 2023,we invested more than$16 million in 49 replenishment projects around the world,for more than 61 million m3 of potential volumetric water benefits(the equivalent volume of 24,000 Olympic size swimming pools)over the lifetime of the projects.Once we

233、 sign a contract for a replenishment project,it takes 1 to 3 years for that project to become operational.As such,we are contracting for projects today that will come online within a few years.61M m3 Our replenishment projects are contracted to deliver more than 61 million m3 of volumetric benefit o

234、ver their lifetime.One of the challenges with water replenishment is the lack of protocols and standards available to support companies in evaluating projects and measuring impact.Given this,we defined four core principles to guide our strategy:Prioritize investment in areas with high water stress a

235、nd high operational water consumption.By 2030,we expect to replenish more water than we consume across our entire direct operations globally and replenish all of that water in approximately 40 priority high water stress locations where we operate.Invest in locally relevant projects that offer co-ben

236、efits.We prioritize water replenishment projects that fit a basins unique needs while also offering social and environmental co-benefits.Keep community needs and impact at the forefront.We are intentionally integrating environmental justice into our replenishment investments,considering how we can s

237、upport marginalized communities while avoiding potential unintended harmful consequences.Focus on innovation with an aim to build project supply and scale.Were increasingly looking for opportunities to support new project implementers that bring creative and innovative approachessuch as through new

238、technologies or funding modelsthat will help the market scale quickly to meet demand.In November 2023,we published a white paper that shares some of our learnings as we developed our global corporate water replenishment program.We also shared for the first time an overview of all replenishment proje

239、cts we have funded to date.Our hope is that,in combination with existing guidance documents and resources,this will help others navigate the complexities of replenishment and even inspire action and investment by other parties in innovative new replenishment approaches.Were increasingly looking for

240、opportunities to support new project implementers that bring creative and innovative approachessuch as through new technologies or funding modelsthat will help the market scale quickly to meet demand.Water Table 2Replenishing more water than we consume Since year one,we have contracted 49 replenishm

241、ent programs in water-stressed basins,which are expected to deliver more than 61 million m3 of replenishment volume over their lifetime.0M 7M 14M 21M 28M Total contracted volume water replenishment Water m3 Find out more in our Data Fact SheetFY21 FY22 FY23 Current year FY20 Base year 25,449,121 15,

242、686,416 12,937,207 2,840,030 29Overview Microsoft sustainability Customer sustainability Global sustainability Appendix 29 Carbon Water Waste Ecosystems Replenishment continued AI Accelerating progress with AI In support of our water replenishment target,weve partnered with FIDO Tech to reduce water

243、 loss from leaks through three projects in the aging water distribution networks of London(England),Quertaro(Mexico),and Phoenix,Arizona(United States).The projects use FIDOs AI-enabled acoustic leak analysis to identify and track leaks over a distance of 350 km within the networks.Once leaks are id

244、entified,the local water utilities will conduct repairs.Over a 10-year period,FIDO plans to track volumetric benefits alongside other complementary benefits,including greenhouse gas reductions.Another project will support the use of AI and site-specific data to improve irrigation management on 385 h

245、ectares per year of private irrigated family farms in the Maipo Basin near Santiago,Chile.In partnership with Kilimo,the system can provide tailored irrigation schedules for a variety of high-value crops,helping farmers to decrease groundwater pumping and diversion of surface water.Partnerships Rest

246、oring the Lake Xochimilco ecosystem Conservation International is working to restore the Lake Xochimilco ecosystem home of the endangered axolotl and the last natural remnant of the Valley of Mexico lagoon systemwhich has been severely modified by urbanization,resulting in water pollution and endang

247、ering biodiversity.Using a site-specific model designed to protect this ecosystem through various conservation measures,such as restoration of the traditional chinampa wetland agricultural technique,planting of native species,and employing biofilters to improve water quality,the project is expanding

248、 its reach through support from Microsoft to incorporate more local farmers and a larger wetland restoration area.Partnerships Improving water resilience in the lower Colorado River Bonneville Environmental Foundation(BEF),in partnership with Microsoft and others,is engaged in the Lower Colorado Riv

249、er Resilience project to conserve water in Lake Mead and support water resilience in Arizona and the lower Colorado River Basin.The project brings together water leasing,habitat restoration,environmental flows,and private and public sector investment to increase water resilience in the lower Colorad

250、o River.Partnerships Addressing water loss and improving resilience With support from Microsoft,Bonneville Environmental Foundation is working to improve water resiliency in the Dallas-Fort Worth area,Texas.A partnership between BEFs Business for Water Stewardship,Sensor Industries,Pacific Institute

251、,and local housing authorities will install 600 leak detection sensors for toilets in multi-family,low-income housing developments.The sensors have a 10-year lifetime and will allow for real-time monitoring of leaks,enabling prompt response from maintenance to minimize water loss.30Overview Microsof

252、t sustainability Customer sustainability Global sustainability Appendix 30 Carbon Water Waste Ecosystems Access Today,one in four people lack access to safely managed drinking water and more than half of the global population does not have access to safe sanitation.Our water positive goal is about m

253、ore than only reducing and replenishing,it is also about helping to provide people around the world with access to safe water and sanitation services.$3M We have invested more than$3 million to improve water access in Brazil,India,Indonesia,Mexico,and Chile.Increasing access to water and sanitation

254、As of 2023,having invested more than$3 million to support communities in Brazil,India,Indonesia,Mexico,and Chile,we have reached our target to provide more than 1.5 million people with access to water or sanitation services.A majority of our work to date has been implemented by Water.org,an organiza

255、tion that helps people without safe access to water and sanitation get access to affordable financing,which enables them to install household taps and toilets and to collect,store,and purify rainwater and water from municipal sources.While we are proud of the progress we have made,we recognize it is

256、 not enough,and we remain committed to continuing to support marginalized communities that have limited access to water and sanitation services.In partnership with WaterEquity to create a water and climate resilience investment strategy,we are turning our attention to vulnerable populations who are

257、susceptible to increased climate shocks.This is WaterEquitys first strategy to focus exclusively on investing in municipal-level climate-resilient water and sanitation infrastructure for low-income populations,supporting people in countries in South and Southeast Asia,sub-Saharan Africa,and Latin Am

258、erica.This work represents our third water-related investment advanced through Microsofts$1 billion Climate Innovation Fund.Enhancing and sustaining the availability of safe drinking water WaterAid is partnering with Microsoft to ensure the sustainable availability of groundwater while adapting to c

259、limate change in the Deccan region of India.This project will harvest rainwater and enhance the availability of groundwater in water-starved regions through artificial groundwater recharge.Envisioned as a three-year program that follows up on previous work in Karnataka that demonstrated significant

260、volumetric benefits,WaterAid will scale this project into the Hyderabad district of Telangana state and expand its work in Raichur and Gulbarga districts of North Karnataka.In Hyderabad,this project will cover 25 residential welfare associations and create profound impact at the district level.We me

261、t our target to provide more than 1.5 million people with access to water and sanitation services.Helping to expand access to safe drinking water in Indonesias rainforest communities.In partnership with Water.org we are also working to expand access to safe drinking water in Indonesias rainforest co

262、mmunities.Many lack running water at home and spend time each day carrying heavy buckets of water from the nearest water source.Sapdiah is among those who live in Indonesias rainforests and was able to overcome this challenge by securing a microloan for a water tank and filter through a local financ

263、ial partner of Water.org.3131 Overview Microsoft sustainability Customer sustainability Global sustainability Appendix Carbon Water Waste Ecosystems Access continued Water Table 3Delivering on our water positive target by enabling access to water and sanitation services,and through water replenishme

264、nt projects A Mexico Water.org in Mexico focused on the Metropolitan Area of Mexico City,disbursing microloans that will benefit more than 1,500 people.1,500 people in Mexico provided with water access B Chile Through our collaboration with Agua Segura,close to 4,000 people benefited from improved a

265、ccess to drinking water for the community of Cerrillo in the municipality of Curacav,and more than 1,000 students gained access to safe drinking water at schools in the communities of Quilicura and Colina.4,954 people in Chile provided with water access Mexico A C Brazil In Brazil,Water.org disburse

266、d more than 15,000 WaterCredit loans that will benefit more than 60,000 people.62,986 people in Brazil provided with water access United Kingdom Spain United States D India C Through our collaboration with Water.org,more than 900,000 people have been reached in the states of Andhra Pradesh,Karnataka

267、,Maharashtra,Tamil Nadu,Telangana,and others.B Chile 923,760 people in India provided with water access D India South Africa Population provided with water access Water replenishment projects China E E Indonesia Water.org reached over 500,000 people throughout Indonesia,primarily in the regions of E

268、ast,West and Central Java.517,713 people in Indonesia provided with water access 49 Total number of water replenishment projects to date 1,510,913 Total number of people reached to date 32Overview Microsoft sustainability Customer sustainability Global sustainability Appendix 32 Carbon Water Waste E

269、cosystems Innovation With the publication in 2023 of our water replenishment white paper,we are sharing our learnings and best practices to help others embarking on replenishment.This paper shares our learnings as we developed our global corporate water replenishment program.This is not meant to be

270、a single“source of truth”to guide corporate replenishment decisions,but we hope that in combination with other existing guidance documents and resources it will help leaders in this space better understand the complexities involved.We still have a lot to learn,and we hope this encourages others to s

271、hare their own insights as well.We look forward to publishing updates as we continue to evolve our strategy and grow our project portfolio.$45M Through our Climate Innovation Fund,we have invested$45 million in scaling water solutions.Improving water data and insights In recognition of the need for

272、future water projections to be based on the latest available data,Microsoft became one of the inaugural World Resources Institute(WRI)Aqueduct Pro Sponsors,providing support for the build out of the most recent WRI Aqueduct tool.Aqueduct 4.0,which is free to the public and available online,helps com

273、panies,organizations,and investors understand risks,with new projections on water stress,demand,and supply.The tool uses the latest CMIP6 climate forcings from the IPCC Climate Change 2022:Impacts,Adaptation and Vulnerability report.Along with other organizations engaged in water replenishment,we ar

274、e helping to fund the development of Volumetric Water Benefit Accounting(VWBA)2.0,which will establish methodologies for quantifying the volumetric water benefits of water stewardship activities and help achieve the scale needed to address global water challenges.VWBA 2.0 will refine the existing gu

275、idance related to project selection and volumetric water benefit quantification;provide principles to guide companies in making credible volumetric water benefit quantification claims;provide guidance for collecting,tracking,and reporting information to substantiate claims;and refine some quantifica

276、tion methodologies.We are also co-funding the development of a guidance document for water access and sanitation projects,modeled after the VWBA guidance for replenishment projects,to create more guidelines around water access and sanitation project typologies,quantifying benefits.Microsoft is also

277、sponsoring HydroSHEDS v2,the next generation of the hydrographic data framework HydroSHEDS.The global standard for mapping basins,rivers,and lakes,HydroSHEDS has enabled advances in global and regional freshwater and biodiversity work and is the basis for many management and decision-making applicat

278、ions,including water risk assessment tools such as WRIs Aqueduct and WWFs Risk Filter Suite.HydroSHEDS v2 refines global river network and catchment delineations using TanDEM-X elevation data.The new version includes latitudes above 60N and below 60S for full global coverage.Scaling water solutions

279、Our focus on innovation doesnt stop with addressing Microsofts water goals related to our direct operations.A significant focus of this pillar is to help our customers and the world more broadly in responding to the global water crisis.Our Climate Innovation Fund has invested$45 million in scaling i

280、nnovative water solutions,including$25 million in WaterEquitys water and climate resilience strategy in FY23.This strategy focuses exclusively on investing in municipal-level climate-resilient water and sanitation infrastructure.Furthermore,we remain committed to driving data digitalization for wate

281、r.In FY23,we introduced critical new water data capabilities in Microsoft Cloud for Sustainability.The Microsoft Cloud for Sustainability water data model provides the framework required for storing and linking water quality and quantity measurement data and water sustainability reference data.Hydro

282、SHEDS hydrographic data framework is enabling advances in freshwater and biodiversity management.33Overview Microsoft sustainability Customer sustainability Global sustainability Appendix 33 Carbon Water Waste Ecosystems Policy Advocating effective and innovative water policy As water challenges con

283、tinue to intensify,we need to go beyond reduction,replenishment,and access,and consider opportunities to improve management of this essential resource.In the United States and in many other countries around the world,less than 1%of water used is recycled today;in contrast,some countries,like Israel,

284、recycle roughly 90%of their wastewater.Water reuse and recycling has the potential to lessen demand for water in water-stressed regions,while also helping minimize the discharge of contaminated water into sensitive areas.We continue to look for opportunities to advocate for meaningful policy.Some of

285、 our advocacy projects include the following:Improving water reuse and recycling At Microsoft,we are working to improve water stewardship and to be good partners with local municipal water resource managers in the communities where we operate.This is why Microsoft is working to increase the procurem

286、ent of recycled or reclaimed non-potable water in our datacenters and other facilities.We recently signed on as a founding member of the WateReuse Associations Coalition for Water Recycling,a group of companies looking to support the adoption and expansion of water reuse across the United States.The

287、 Coalition will work to advance policy solutions and build partnerships between recycled water utilities,regulatory agencies,and industry.Companies that join this coalition will have a unique role to play in helping to advocate for more reuse and recycling across the United States.Increasing water s

288、ecurity Microsoft is supporting The Nature Conservancy working with the Jicarilla Apache Nation,and the New Mexico Interstate Stream Commission(NMISC),in implementing a first-of-its-kind water sharing agreement that allows the NMISC to lease up to 20,000 acre-feet of water per year from the Nation t

289、o benefit threatened,endangered,and sensitive fish species and increase water security for New Mexico.This agreement demonstrates how Tribal Nations and state governments can work together on a sovereign-to-sovereign basis,with support from conservation organizations,to find collaborative solutions

290、that benefit multiple interests and their surrounding community.Supporting more sustainable water governance Water Europe is a multistakeholder organization representing the whole water value-chain focused on achieving a Water-Smart Society5.As members,we continue to support research,analysis,and ad

291、vocacy on water in the European Commission.34Overview Microsoft sustainability Customer sustainability Global sustainability Appendix 34 Carbon Water Waste Ecosystems Learnings and whats next Innovation will continue to play a powerful role As a global community,we need to scale investment in water

292、to help all of us meet our corporate goals,to help the world protect freshwater resources,and to help ensure that everyone,including those most vulnerable,have access to water and sanitation services.As we identify innovative approaches that work,we look forward to scaling these within Microsoft and

293、 sharing them outside of our four walls to increase supply for replenishment projects and further reduce pressure on the shared water resources we depend on.We plan to continue to identify and invest in technology adoption opportunities for emerging water technologies through our Climate Innovation

294、Fund and through our replenishment and access investments.Water reuse remains a big opportunity globally The global average for water reuse is roughly 10%.6 In the United States,less than 1%of water is reused,and there are very few utilities globally that offer reclaimed water to industrial users.7

295、This means that most of the water we all use every day is potable water that is disposed of and polluted after it is used.At Microsoft,we tackle reuse within our datacenters and campuses:maximizing reuse of each drop of water that we withdraw,procuring reclaimed,non-potable water from utilities and

296、from alternative sources,including rainwater,air-to-water generation,and other innovative approaches where available.In 2023 we joined the Coalition for Water Recycling to continue advocating to help increase water reuse across the United States.Partnering to create a water positive future We believ

297、e that the collective power of multiple organizations funding innovation,driving action,and advocating for public policy will be critical to addressing the global water crisis.Collective action is a thread that we see across each of Microsofts five pillars for water positive.Given the collective app

298、roach required to solve shared water challenges,we plan to continue building on partnerships like the Water Resilience Coalition(WRC)that bring companies together to pool funding and invest in solutions in locations with extreme water stress.We will also continue to co-invest in water replenishment

299、projects around the world.A complete list of replenishment projects we have funded as of July 2023 can be found in our replenishment white paper.Improving measurement Understanding the value and impact of water-related projects requires better monitoring.Developing enhanced guidelines and establishi

300、ng standards for measuring project outcomes will help everyone account for impacts in a consistent and reliable manner.In support of this,were helping fund the next iteration of the VWBA 2.0 and the development of standardized accounting methods for the co-benefits of water access,sanitation,and hyg

301、iene(WASH)projects(WASH Benefit Accounting).We are also supporting the CEO Water Mandate in building out the Water Action Hub 5.0,a platform that connects stakeholders to a range of water stewardship tools.Microsoft is also participating in the Water Resilience Coalitions Net Positive Water Impact(N

302、PWI)working group,which plans to release its Operational Guidance paper in early 2024.Investing to accelerate progress Project supply is particularly low in high water stress basins where many companies have operations.In some regions,few to no pre-designed projects ready for investment and implemen

303、tation are available.We are tackling this by building supply and working to scale projects,like FIDO,so they are available to others.Building a more ready supply will require:1More project implementers,brokers,and corporate investors.2 Broader awareness among professionals at utilities,governments,c

304、onsulting firms,and NGOs.3 Innovative financing.35Overview Microsoft sustainability Customer sustainability Global sustainability Appendix 35 Carbon Water Waste Ecosystems Getting to zero waste Waste Reducing waste at our campuses 37 and datacenters Advancing circular cloud hardware 40 and packaging

305、 Improving device and packaging circularity 42 Learnings and whats next 45 Our approach Every year,people consume 100 billion metric tons of materials,and only 7.2%of those materials are cycled back into the economy after use,according to the 2023 Circularity Gap Report.Retooling existing linear tak

306、e-make-waste systems and infrastructure is required to meet the critical need to accelerate progress in how we design and use products to effectively reduce material consumption.We recognize the urgent need to reduce waste and carbon emissions associated with the life cycle of materials by prioritiz

307、ing reduction and reuse as much as possible.As a company that manufactures devices,builds campuses and datacenters,and uses manufactured goods in our operations,we have committed to responsibly design and source materials,and are taking an increasingly circular approach to reach our target of zero w

308、aste by 2030.This strategy,grounded in the prioritization of reduction and reuse,enables us to extend the life of the materials we use,and reduce waste and carbon emissions as a result.This effort begins upstream by reducing the quantity of materials wherever possible,keeps products in use longer th

309、rough reuse and repair,and recovers materials downstream to our recycling and composting programs.Image captured by John Tien,Director of Commodity Sourcing,United States89.4%Reuse and recycle rates of servers and components across all cloud hardware reached 89.4%in FY23.36Overview Microsoft sustain

310、ability Customer sustainability Global sustainability Appendix 36 Carbon Water Waste Ecosystems Our approach continued Our journey to zero waste As we work to acheive zero waste,we are taking an increasingly circular approach to materials management to reduce waste and carbon emissions.2.7%We reduce

311、d single-use plastics in our Microsoft product packaging to 2.7%in FY23.Our targets Driving to zero waste building and operations We will achieve 90%diversion of operational waste at owned datacenters and campuses,and 75%diversion for all construction and demolition projects,by 2030.Increasing reuse

312、 and recycling of servers and components By 2025,90%of servers and components for all cloud hardware will be reused and recycled with support from our Circular Centers.Eliminating single-use plastic By 2025,we plan to eliminate single-use plastics in all Microsoft primary product packaging.Making fu

313、lly recyclable products and packaging We plan to design Surface devices,Xbox products and accessories,and all Microsoft product packaging to be 100%recyclable in OECD countries by 2030.Innovating cloud packaging By 2025,all cloud packaging8 is planned to have a minimum of 50%recycled content;elimina

314、te single-use plastics;will be 100%reusable,recyclable or compostable;and packaging weight will be reduced by a minimum of 10%from a December 2020 baseline.Our progress 18,537 metric tons of operational waste diverted In FY23,we diverted 18,537 metric tons of solid waste from landfills and incinerat

315、ors across our owned datacenters and campuses.89.4%reuse and recycling Our reuse and recycle rates of servers and components across all cloud hardware reached 89.4%in FY23.Reduction in single-use plastics to 2.7%On our way to eliminate single-use plastics in Microsoft product packaging by 2025,we re

316、duced plastics across Microsofts product packaging portfolio for another year,achieving 2.7%in FY23.Devices Recycled materials The post-consumer recycled content used in our devices packaging currently stands at 53.8%.Repairability We expanded our portfolio of repairable Surface products in 2023.Dev

317、ice recyclability To be reported in future years.Increasing circularity of cloud packaging In FY23,we increased circularity in our rack packaging,which makes up most of our packaging waste by mass.Were pioneering an innovative reusable rack packaging system that drives progress across all four packa

318、ging targets.As we scale our reuse system,we are partnering with our logistics service providers to implement a global recycling program across our worldwide locations.37Overview Microsoft sustainability Customer sustainability Global sustainability Appendix 37 Carbon Water Waste Ecosystems Reducing

319、 waste at our campuses and datacenters Getting to zero waste at our campuses and datacenters requires ambitious efforts to design for circularity;reducing as much waste as we can,as well as reusing and repairing products to extend their useful life.Were thinking through everythingfrom durable servic

320、eware to air filterswith circularity in mind and prioritizing the prevention of waste from the start as we approach the construction,furnishing,renovation,and demolition of the buildings in our datacenter and campus portfolio.Campuses Reducing construction and demolition waste In FY23,weve achieved

321、over 90%construction and demolition waste diversion rate on the Redmond campus modernization project.This accounts for over 11,000 tons of waste diverted from the landfill thanks to thorough and detailed planning that started early in concept design and continued throughout construction.Reducing ope

322、rational waste in our workplaces As we continue to pursue Zero Waste certification on campuses worldwide,we have focused on the reduction of single-use materials and operational waste through the widespread deployment of reusable serviceware at several campuses,including Hyderabad and Bengaluru,Indi

323、a;Silicon Valley,California;Dublin,Ireland;and Thames Valley Park,England.We have also deployed beverage dispensers to replace single-use cartons,cans,and bottles.Additionally,were engaging employees with novel,effective messaging around participation to further reduce single-use materials.Our Redmo

324、nd campus has been Zero Waste certified for seven consecutive years.In FY23,we initiated a reuse pilot on our Redmond campus where employee devices and peripherals used on campus turned in for recycling were refurbished and reused,reducing operational waste,extending the internal life cycle of devic

325、es and peripherals previously destined for recycle.The pilot was a success,with over 18,000 items redeployed internally,diverting 33,000 pounds of e-waste.Were evaluating the results for pilot expansion in future years.Find out more in our Data Fact SheetWaste Table 1Diverting operational waste from

326、 landfills and incinerators In FY23 we diverted more than 18,500 metric tons of waste from being landfilled or incinerated across our owned datacenters and campuses.0%20%40%60%80%100%Non-diverted Diverted Reused A Recycled B Composted C Incinerated D Landfilled E 82.2%80.7%84.9%82.0%FY21 FY22 FY23 C

327、urrent year FY20 Base year A B C D E A B C D E A B C D E A B C D E Diversion rate Target 90%38Overview Microsoft sustainability Customer sustainability Global sustainability Appendix 38 Carbon Water Waste Ecosystems Reducing waste at our campuses and datacenters continued In Silicon Valley,Dublin,Re

328、ading,and Herzliya(Israel),campuses performed waste characterizations to determine how materials are sorted and find intervention opportunities to prevent waste contamination.In China,our campuses are actively working with third-party waste auditors to codify terms and definitions around waste that

329、are easily translated and understood by colleagues across the world.Finally,across Microsoft campuses we are working to better define reduction and reuse calculations in preparation for more campuses to pursue Zero Waste certification.AI Accelerating progress with AI As part of a three-year pilot pr

330、ogram(FY22FY25),we are rolling out an AI-powered food waste prevention technology across several major locations including Bengaluru and Hyderabad,India;Shanghai,Beijing,and Suzhou,China;Charlotte,North Carolina;Silicon Valley,California;Dublin,Ireland;and Reading,England.Using scales and scanning d

331、evices,the system tracks,learns,and classifies both back-of-house prep waste and front-of-house plate waste.The dining staff uses the data collected each month to calculate and monitor diversion rates to inform future purchases across campuses,bringing Microsoft one step closer to zero waste.LinkedI

332、n waste reduction At our Dublin campus,LinkedIn has piloted a bin-free kitchens program with a dedicated fermentation room,where trim waste and fruit and vegetable pulps are dehydrated and repurposed.The removal of the bins has resulted in an average reduction of food waste by 55%per serving since i

333、ts introduction.Additionally,LinkedIn creates in-house made products and is cultivating strategic partnerships with vendor partners to facilitate plastic packaging reduction programs across all facets of vendor supply chains.At our Dublin campus and globally,100%of our micro-kitchens are free of plastic bottles,and each site with onsite full-service kitchens uses reusable plateware.Use of house-ma