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Key Points:
- Implementing over 80 measures to reduce Scope 3 emissions
- Requiring select suppliers to use 100% carbon-free electricity by 2030
- Diverted over 18,537 metric tons of waste from landfills
- Microsoft’s Climate Innovation Fund has allocated $761 million towards innovative climate technologies, advancing solutions like direct air-capture and sustainable aviation fuel.
Microsoft has released its 2024 Environmental Sustainability Report, covering the progress made in fiscal year 2023 against the baseline set in 2020. The full report can be explored here.
Innovation and Partnerships for a Sustainable Future
In 2020, Microsoft pledged to become carbon negative, water positive, achieve zero waste, and protect more land than it uses by 2030. The technology sector has evolved significantly since then, influencing our strategies to meet these ambitious climate goals. While generative AI offers new solutions for the climate crisis, it also poses challenges in sustainability commitments due to its infrastructure and energy demands. Despite these obstacles, Microsoft remains dedicated to its climate goals and to empowering others with the necessary technology for a sustainable future.
Key Achievements and Challenges
Areas on Track
- Reducing Operational Emissions (Scope 1 and 2):
- Accelerating Carbon Removal:
- Designing for Circularity:
- Improving Biodiversity and Land Protection:
Areas Needing Improvement
- Reducing Scope 3 Emissions:
- Water Use Reduction and Replenishment:
Carbon Negative Initiatives
Microsoft’s carbon negative strategy focuses on reducing emissions, increasing the use of carbon-free electricity, and enhancing carbon removal efforts. In 2023, significant progress was made in these areas:
- Increased renewable energy assets to over 19.8 gigawatts across 21 countries.
- Contracted 5,015,019 metric tons of carbon removal over the next 15 years.
- Achieved a 6.3% reduction in Scope 1 and 2 emissions from the 2020 baseline.
However, Scope 3 emissions increased by 30.9% due to the construction of new datacenters and the embodied carbon in building materials and hardware components. Microsoft has initiated a company-wide effort to address these challenges by:
- Implementing over 80 measures to reduce Scope 3 emissions.
- Requiring select suppliers to use 100% carbon-free electricity by 2030.
- Utilizing digital technology for better measurement and action.
- Enhancing datacenter efficiency and advocating for greener materials.
- Supporting public policy changes to accelerate climate advancements.
Water Positive Commitment
In 2023, Microsoft achieved its water access target by providing clean water and sanitation solutions to over 1.5 million people. Additionally, water replenishment projects were estimated to provide over 25 million cubic meters of water benefits. As datacenter operations grow, Microsoft aims to:
- Minimize water use and replenish more than consumed.
- Design new datacenters to consume zero water for cooling.
- Partner with organizations to advance water policy and recycling initiatives.
- Develop scalable replenishment projects in high-stress locations.
Zero Waste Goals
Microsoft’s zero waste journey focuses on reducing waste at campuses and datacenters, promoting circular cloud hardware, and improving device packaging circularity. In FY23:
- Achieved an 89.4% reuse and recycle rate for cloud hardware.
- Diverted over 18,537 metric tons of waste from landfills.
- Reduced single-use plastics in product packaging to 2.7%.
Efforts include expanding Circular Centers and piloting programs to repurpose materials, enhancing circularity at every stage.
Ecosystem Protection
Microsoft aims to protect more land than it uses by 2025, exceeding its land protection target by 40% in FY23. Efforts include:
- Incorporating regenerative design solutions around datacenters.
- Enhancing local biodiversity and stormwater management.
- Using AI to monitor ecosystem health and guide future actions.
Customer and Global Sustainability
Microsoft continues to support global sustainability by empowering customers with technologies to manage resources and optimize systems. In 2023:
- Expanded Microsoft Sustainability Manager to include all Scope 3 emissions.
- Provided open access to environmental monitoring data through the Planetary Computer.
Microsoft’s Climate Innovation Fund has allocated $761 million towards innovative climate technologies, advancing solutions like direct air-capture and sustainable aviation fuel.
Related Article: Microsoft Partners with re.green for Largest Carbon Removal Project Worth 3 Million Tons of Carbon Removal Credits
Looking Ahead
Microsoft CEO Satya Nadella emphasized that climate change is “the defining issue of our generation.” Microsoft is committed to integrating sustainability into every aspect of its work, leveraging technology to accelerate climate progress. The company continues to develop new approaches, forge partnerships, and innovate to meet this global challenge.
Explore the full 2024 Environmental Sustainability Report here.