Overview Carbon Water Waste Ecosystems Appendix 28 Enabling systems change (continued) Policy We have seen progress against the following Microsoft has been In September 2020, Microsoft filed comments to support Future climate-related risks would be reduced by the areas already: FERC’s proposed carbon pricing policy and provided upscaling and acceleration of far-reaching, multilevel, Clean energy actively engaged in policy input on how to incorporate state-determined carbon and cross-sectoral climate mitigation and by both Microsoft advocated for several bills that would provide efforts to advance clean prices in wholesale electricity markets. incremental and transformational adaptation. Those a critical boost to research, development, and GHG reduction efforts must be guided by policy that accelerates carbon deployment of clean energy and carbon reducing energy, well-functioning In Europe, we have used our voice in support of more reduction and removal opportunities. technologies such as energy storage, direct air capture, carbon markets and carbon ambitious carbon reduction targets through the EU In past years, we have supported carbon pricing and and other carbon removal technologies, such as S. 2657, Climate Law, for example by signing an open letter by clean energy policy efforts at the state and national level the American Energy Innovation Act. Congress approved pricing, reduction targets, the Corporate Leaders Group Europe, calling on the in the US, through direct lobbying, engagement, and a package of these measures authorizing over $35 billion product transparency and EU leaders to reduce GHG emissions by at least 55 groups such as the Climate Leadership Council, CERES in new climate R&D as part of the omnibus spending bill. percent by 2030, as a milestone towards the EU’s BICEP Network, Advanced Energy Economy, Climate and Distributed energy resources more in both the United 2050 net zero goal. Clean Energy Solutions, and the Renewable Energy Microsoft has been advocating for the Federal Energy States and Europe Transparency on products Buyers Alliance. Regulatory Commission (FERC) to update its rules on We advocated for increased transparency in reporting In 2020, we committed to using our voice to speak out distributed energy resources (DERs) to participate in throughout 2020. the carbon footprint of products, services, and on four public policy issues that we think can advance wholesale electricity markets, provide resiliency, and organizations, through legislative initiatives as part of the the world’s carbon efforts: speed up innovation en route to a zero-carbon grid. In EU Green Deal. In 2020, we submitted comments to the • Expanding global basic and applied research efforts 2020, FERC approved a historic final rule, Order 2222, public consultations on the revision of the Non-Financial on carbon, funded by governments, and reorienting enabling DER aggregators to compete in all regional Reporting Directive, Renewed Sustainable Finance them towards targeted outcomes and enhanced organized wholesale electric markets. Strategy, and Green Claims to begin shaping legislative cross-border collaboration to develop the Carbon markets proposals expected in 2021. breakthrough technologies needed to achieve net In 2020, Virginia joined the Regional Greenhouse Gas Efficiency of datacenters zero global emissions. Initiative (RGGI) after ongoing advocacy and support by Microsoft has been supporting the EU’s efforts to develop • Removing regulatory barriers to help catalyze Microsoft. RGGI is a multi-state cap-and-invest program a policy proposal on climate neutral datacenters. We also markets to enable carbon-reduction technologies in the Northeast and Mid-Atlantic US, and the revenue helped commission a major think tank study on to scale quicker. generated through RGGI is reinvested into the states datacenter energy efficiency issues for use in advocacy through energy efficiency mechanisms and bill savings, efforts and are helping create dedicated trade association • Introducing market and pricing mechanisms renewable energy markets, and other initiatives to projects in Brussels and Dublin to engage in the related so people and businesses can make more informed benefit the community and reduce emissions. policy efforts. carbon purchasing decisions. Carbon pricing • Empowering consumers through transparency based Microsoft was a lead member in the largest business on universal standards to inform purchasers about the gathering on Capitol Hill to advocate for climate carbon content of goods and services. legislation in over a decade, the Lawmaker Education & Advocacy Day (LEAD) in 2019. We followed up in 2020 to urge Congress to keep the focus on a green recovery and investments in a net zero economy.