Enabling systems change (continued) Driving collective action Getting to net zero is going to take more than investments, technology, and commitments. We’ll need to use all those together in sectoral and multi- stakeholder organizations that drive full ecosystem change. Microsoft participates in many of these efforts and spearheads work across several, including the following. Transform to Net Zero Transform to Net Zero (TONZ) is a cross-sector initiative to accelerate the transition to a net zero global economy. The group’s 2025 goal is for all Fortune Global 1000 companies to have targets backed up by transformation plans to achieve net zero no later than 2050. TONZ’s strategy is to achieve this through enabling business transformation, taking collective action, and driving systemic change. This includes a focus on demonstrating the transformation of members’ own businesses and inspiring transformation in other companies. Since its initial launch in late 2020, TONZ has released a position paper and action plan to define the group’s position on net zero goals and their implementation, formed decarbonization approaches across key supply chain areas, and published two research reports on the building blocks of net zero and key sectoral challenges. In Q3 2021, TONZ published the first of a set of transformation guides to share lessons learned from TONZ companies on net zero implementation across procurement, net zero goalsetting, and policy engagement. See TONZ Position Paper and Action Plan here Business Alliance to Scale Climate Solutions (BASCS) Launched in 2021, BASCS aims to bridge the gap in climate finance by providing a central platform for businesses and experts to meet, learn, discuss, and act together. As a founding member of the alliance, Microsoft is sharing our resources and experiences as an early adopter of climate solutions, as well as an investor providing catalytic capital for nascent and first-of-a-kind climate solutions. Carbon Removal Climate Action Group Microsoft co-founded the Carbon Removal Climate Action Group of the World Economic Forum (WEF) CEO Climate Leaders Alliance to help raise corporate awareness about the importance of carbon removal. The alliance will also create a due diligence platform and a joint purchasing strategy for carbon removal. Sustainable Aviation Fuel Buyers Alliance (SABA) In April 2021, Microsoft was announced as one of the founding members of SABA. Led by RMI and the Environmental Defense Fund (EDF), SABA will work to accelerate the path to net zero aviation by driving investment in SAF, catalyzing SAF production and technological innovation, and supporting member engagement in policy-making efforts. Playing for the Planet Our gaming business has partnered with the United Nations Environment Programme on the Playing for the Planet initiative. Its goals are to reduce the impact of the gaming ecosystem on the environment through better carbon accounting and educating gamers everywhere on sustainable causes. For example, the Minecraft Build a Better World Initiative delivers in-game content about the need to protect and conserve, and matching funds to charitable organizations focused on conservation. 2025 TONZ’s 2025 goal is for all Fortune Global 1000 companies to have targets backed up by transformation plans to achieve net zero no later than 2050. Green activations in games Mojang have already established themselves in the gaming community as world leaders in social outreach and education. Minecraft: Education Edition has reached millions of students with build challenges to create sustainable cities of the future, and with curriculum aligned lesson plans on climate and environmental themes. Mojang is committed to continued innovation in sustainability with new projects including the UNESCO Global Build Challenge, Climate Futures in partnership with Met Office, and the Sustainable City Map. By integrating green activations in games and supporting the global environmental agenda through initiatives ranging from planting millions of trees to reducing plastic in their products, we believe Xbox can have significant impact in improving the world. Green Software Foundation Microsoft launched the Green Software Foundation in May 2021 alongside Accenture, ThoughtWorks, and GitHub to create green software industry standards, drive awareness, grow advocacy, and accelerate innovation to enable developers to reduce the carbon emissions of the software platforms that they build. The foundation has grown to 20 members and over 350 individual contributors collaborating on standards, innovation, and education. The first version of the Software Carbon Intensity (SCI) standard, a methodology for scoring software applications, was released in December 2021. 39