Overview Carbon Water Waste Ecosystems Appendix 8 2021 Outlook For Microsoft to do well, we need the world to do well. “ Addressing six enabling Six enabling conditions A look This belief is why our mission is to empower every As we worked to set and implement our person on the planet to achieve more, and why our CEO, conditions will ultimately commitments to become carbon negative, water Satya Nadella, stated, “the purpose of a corporation is dictate the success or failure positive, and zero waste and to deploy a Planetary ahead from to find profitable solutions to problems of people and Computer, some of these global challenges came into the planet.“ of the sustainability agenda sharp focus. There is a suite of enabling conditions Unfortunately, 2020 brought an array of new challenges this decade—for Microsoft that must exist for Microsoft and the world to Lucas Joppa to this already complex work. COVID-19 has devastated effectively and efficiently achieve a more sustainable human lives in every corner of the globe, while climate and the world.” and just future. change caused unprecedented environmental and The enabling conditions that we must address inside This must be a decade of ambition economic damages. Dr. Lucas Joppa, Chief Environmental Officer Microsoft are clear—broadening and strengthening paired with action. At Microsoft, While vaccines are becoming available as a solution for our governance and accountability frameworks while we appreciate the urgency, COVID-19, solutions for climate change will require building a culture of sustainability investment and deploying a host of different tools to combat the many innovation. But it will be the creation of six enabling responsibility, risks, and drivers of climate change. For the survival of people and conditions outside Microsoft that will ultimately opportunities ahead. our planet, this is a battle we can’t afford to lose. dictate success or failure of the sustainability agenda. This will require the dedication of individuals, organizations, Resolving or improving these conditions will ensure a and governments, all focused on stabilizing Earth’s climate coherent, coordinated, cost-efficient approach to and properly managing its natural resources. individual and collective action on climate change. We have a limited amount of time to accomplish what Risk recognition will be the most significant behavioral and technological Without a holistic assessment of risk, it is societal transformation in modern human history. By difficult for companies to efficiently 2030, society must be well on its way to mitigating and manage their sustainability challenges. adapting to rapidly changing climates, ensuring resilient Unfortunately, the scale and societal water supplies, reducing the amount of waste we interdependencies of climate risk make generate, and reversing the ongoing and catastrophic a comprehensive assessment difficult. degradation of ecosystems while halting the extinction While many important efforts are of species. underway, there is not yet an exhaustive framework for risk assessment That is why this must be a decade of ambition paired for businesses. with action. By 2030, a widely adopted and At Microsoft we appreciate the urgency, responsibility, 2030 comprehensive risk framework will risks, and opportunities ahead. That is why a little over By 2030, Microsoft will need to be in place to ensure every a year ago we began a process to transform our remove more carbon than it business can fully integrate environmental company’s work on sustainability to better align with the emits. By 2050, we will remove risk at the core of their corporate scope, scale, and speed of the world’s environmental all historical emissions. governance process. challenges and yet-to-be created solutions.