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Overview Carbon Water Waste Ecosystems Appendix 9 2021 Outlook (continued) Standards setting More needs to happen Standards and globally accepted definitions drive efficiency, clarity, and interoperability. For corporate By 2030, we must progress on the six enabling conditions: sustainability commitments to be meaningful, we must ensure that everyone is working from the same taxonomy. Without standards we won’t be able to compare one company’s net-zero commitment to any 1. 2. 3. 4. 5. 6. other, and more time will be spent trying to assess whether a commitment is meaningful than will be in Risk Standards Data Innovation Market Policy making meaningful progress on sustainability. If we can’t recognition setting digitization investment maturation progression do basic math on carbon numbers from different sources because they were created using different methods, then how will we be able to track progress on emissions reductions and carbon removal, or incentivize suppliers or customers to improve their impact? Solving this means that society needs to make rapid advances on A widely adopted and By well before 2030, we Digitized sustainability Most climate investments Carbon offset and A globally coordinated agreeable sustainability standards. comprehensive risk must be operating in a data must become a will need to fit within a removal, water policy regime should be in Companies are used to coming together within a sector framework will need to world where companies platform that allows well-structured and replenishment, and place that limits emissions to collectively advance industry standards. By well before be in place to ensure have come together across society to stitch together accepted framework that ecosystem service in line with a 1.5ºC future, 2030, we must be operating in a world where companies every business integrates sectors to agree on the dimensionality of the aligns investment vehicles markets can supply while respecting political have come together across sectors to agree on common environmental risk at common sustainability sustainability landscape along an appropriate greater and growing sovereignty and the sustainability units and methods of measurement. the core of their units and methods of from the bottom up, and risk-tolerance spectrum, demand, transparently cross-boundary nature of Data digitization corporation’s corporate measurement across analyze them from the targeted on the most and with standard the Earth΄s life support Organizations’ sustainability data systems are often governance process. carbon, water, and waste. top down. impactful areas. insurance guarantees. systems, and does so with analog, siloed, and one-off—if they exist at all. Digital a focus on the need to monitoring and recording systems of carbon emissions, equitably share these water consumption, waste generation, and ecosystem resources across cultures health at an operational and planetary level will be the and communities. foundation upon which the private sector will ensure transparency, meaningfully inform policy advances, and unleash the creativity of markets to help build new solutions. By 2030, we must be operating in a world where digitized and standardized sustainability data are the platform that allows society to stitch together the incredible dimensionality of the sustainability landscape from the bottom up, and analyze them from the top down.

Microsoft Environmental Sustainability Report 2020 - Page 9 Microsoft Environmental Sustainability Report 2020 Page 8 Page 10