Scope 3 category Emissions calculation methodology Supplier dat a percen tage * Downstream leased assets Emissions associated with sublets are calculated using the intensities deri ved from data collected for the primary leased space (for example, kilowatt-hours/square foot [kWh/SF]) and prorated for the square foo tage of the sublet space. In this way, it is assumed that the emissions intensities of the leased spaces are the same as the overall buildings in which they reside. Estimated refrigerants are calculated using the same methodology and intensity as used to calculate refrigerant intensities for assets occupied by Microsoft. Electricity emission factors used are those appropriate to each location, as utilized in our Scope 1 and Scope 2 location-based inventory. GWPs are from the IPCC Fourth Assessment Report (AR4), 100-year average. 0 Fran chises Not relevant. Microsoft did not operate franchises in the years reported. Investments Not relevant for reported years. Joint ventures, actively managed inve stments, and direct equity investments totaled less than 2 percent of Microsoft’s market capitalization at the end of the reporting period. Microsoft has not engaged in the long-term financing of projects and the proceeds for each debt issuance have been for general corporate purposes. Appendix D (continued) * Represents the percentage of emissions calculated (by category) using data obtained from suppliers or value chain partners. 109 109