Our approach (continued) 19 Carbon Table 3 Breaking down of our FY21 Scope 3 emissions by source Scope 3 represents the majority of Microsoft’s emissions, and we are committed to reducing these emissions by more than 50 percent by 2030. Tracking and reporting against this category of emissions is critical for n et zero progress. 0.88% Scope 1 1.16% Scope 2 9 7. 9 6 % Scope 3 9 6 1 2 10 11 3 8 5 7 4 Scope 3 Categories 1 Purchased Goods & Services 35.03% 2 Capital Goods 29.70% 3 Fuel- and Energy-Related Activities (Market-Based) 2.20% 4 Upstream Transportation 1.60% 5 Waste 0.04% 6 Business Travel 0.16% 7 Employee Commuting 0.57% 8 Downstream Transportation 0.32% 9 Use of Sold Products 28.07% 10 End of Life of Sold Products 0.14% 11 Downstream Leased Assets 0.13% See appendix for more data on our carbon emissions a. Scope 2 and 3 values are market-based. b. Overall increase in emissions is driven mainly by the growth in the categories of purchased goods and services, capital goods, and use of sold products. 5.8 GW In FY21, we signed new PPAs for approximately 5.8 GW of renewable energy across 10 countries around the globe, totaling more than 8 GW of renewable energy via PPA s or long-term contracts.