Overview Carbon Water Waste Ecosystems Appendix 20 Carbon negative (continued) Reducing embodied carbon Shifting to virtual events For example, Microsoft’s multiple-day MVP Global Reducing carbon from travel with SAF In our 500-acre Puget Sound Campus Modernization We began shifting events to a virtual format using Teams Summit event in March 2020 was migrated to a When employees do travel, we want to use our travel project, we are partnering with industry leaders to pilot with our 2019 shareholder meeting. With virtual events virtual format on Teams. The Summit included over dollars wisely and in support of greener options, and fund a new tool, the Embodied Carbon in becoming the norm due to COVID-19, we held all our 2,000 attendees from around the world. By hosting including sustainable aviation fuel (SAF). Construction Calculator (EC3). EC3 enables data-driven 2020 events virtually, including flagship events like Build, the event virtually as compared to in-person, the carbon In October 2020, Microsoft announced a partnership decisions in selecting carbon smart building materials Ignite, and Inspire as well as smaller regional and emissions were estimated to be lowered by nearly 5,000 with Alaska Airlines and SkyNRG to supply an amount of while highlighting which materials have the greatest business group events. We relied on Teams, finding metric tons. This is equivalent to removing roughly SAF that will cover Microsoft employees’ travel on three capacity for impact on the project—so we can prioritize new ways to operate seamlessly and collaboratively— 390,000 cars from the road for one day, which is more frequently traveled Alaska routes—between Seattle and investments accordingly. and are beginning to calculate the carbon benefits of than the number of cars crossing the George Washington San Francisco, San Jose, and Los Angeles. The SAF, In our modernization project, we set a 30 percent this approach. Bridge per day, or the amount of carbon absorbed over 10 supplied by SkyNRG and produced from waste oil, is one reduction target for embodied carbon. The commitment years by planting nearly 150 acres of forest, which is over way for the aviation industry to reduce carbon emissions to using EC3 via third-party verified environmental half the size of Central Park. In 2021, we intend to share on a lifecycle basis. It is also a way for us to reduce the product declarations (EPDs) led to the first manufacture- additional information on the carbon emissions impacts emissions associated with our business travel in Scope 3. specific and product-specific EPDs for precast concrete of our larger events, such as Build, and on remote work. This first-of-its-kind partnership in the US is a model in the US. Based on our lessons learned, we are other companies can use to reduce their employees’ expanding the use of the EC3 tool to our datacenters and carbon emissions associated with business travel. other new campuses to reduce embodied carbon. Our partnership with Alaska builds on our commitment Rethinking travel to more sustainable air travel that we started in October For the past several years, we’ve encouraged employees 2019 via a partnership with KLM, where we committed to rely more on Microsoft Teams and less on travel to to purchase the SAF equivalent to all flights taken by work with their colleagues and customers. In 2020, prior Microsoft between the US and the Netherlands on KLM to COVID-19, we began empowering employees with and Delta Airlines. more information and new choices, including TripTrackerLite, which delivers personal travel statistics including carbon impact from travel. We worked with our travel partner, Concur, to provide the estimated carbon emissions of flights and help employees compare the carbon costs, as well as financial costs, of their travel options. We’ve encouraged employees to rely more on Teams and less on airline travel.