Microsoft’s commitment to sustainability is reflected in the carbon program that since 2012 has applied a global internal carbon fee model charging Microsoft business units for carbon emissions from their operations. The fee is designed to incentivise efficiency, investments in carbon-reducing innovations and the development of sustainable energy projects and technologies— all of which help minimise Microsoft’s environmental impact.

Microsoft invests the carbon program fees into global carbon offset projects aimed at building sustainable communities that benefit both the environment and local communities. A by-product of Microsoft’s investments in reforestation, conservation, clean water and clean energy are human health and economic development opportunities, which have improved the lives of more than 7 million people around the world. The fees are invested in four categories to achieve these outcomes:

• Renewable energy helping to expand the renewable energy market worldwide
• Carbon offset community projects supporting sustainable development globally in relation to Microsoft’s data centre operations
• Climate Grants driving climate-related energy and technology innovation both for Microsoft’s own internal operations and to contribute to global climate action
• Track-and-report projects helping to ensure Microsoft’s transparency and accountability. Since Microsoft’s carbon neutral commitment, emissions have been reduced by more than 9 million metric tons of carbon dioxide equivalent while integrating sustainability into Microsoft’s business model. Microsoft continues to engage suppliers, quantify emissions from customers’ use of cloud services, work to ensure that operations are resilient to impacts from climate change and accelerate energy and technology innovation. More information can be found here. 

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