Our progress Reduced Scope 1 and 2 by 16.9% We reduced our Scope 1 and 2 (market- based) emissions by 58,654 metric tons of carbon dioxide equivalents (mtCO 2 ) in FY21. Scope 3 emissions increased by 22.7 percent. 5.8 GW of renewable energy In FY21, we signed new power purchase agreements (PPAs) for approximately 5.8 gigawatts (GW) of renewable energy across 10 countries around the globe, totaling more than 8 GW of renewable energy via PPAs or long-term contracts. Supplier reporting to ols We released a set of in-depth capacity- building tools and resources, developed in partnership with ENGIE Impact, WSP, and CDP to help companies, especially our suppliers, report their greenhouse gas (GHG) emissions and set strategies to reduce emissions from electricity. 87% supplier reporting In July 2021, 87 percent of our in-scope suppliers reported their emissions to CDP, up 12 percent from 2020. This data informs suppliers’ baselines for reduction targets and gives Microsoft a more accurate picture of its Scope 3 emissions. Following the CDP cycle, Microsoft built out action plans with suppliers to assess and report emission reductions through 2030. 2.5M tons carbon removal In FY21 and FY22, Microsoft successfully contracted to remove 2.5 million mtCO 2 , meeting our cumulative two-year goal. This includes 1.4 million mtCO 2 2 contracted in FY21 and 1.1 million mtCO 2 contracted to date in FY22, on path to meet our goal of 1.5 million mtCO 2 in FY22. $571M Allocated $471 million to date via our Climate Innovation Fund to accelerate our carbon goals, as well as water and waste. We also donated $100 million to Breakthrough Energy’s Catalyst initiative. Launched the Microsoft Cloud for Sustainability In July 2021, we launched the Microsoft Cloud for Sustainability to provide comprehensive, integrated, and automated sustainability management for organizations at any stage of the sustainability journey. Our approach (continued) Improved device efficiency While overall device and console use phase emissions grew as a result of higher sales and usage during the pandemic, we reduced the carbon footprint for several products and usage scenarios: • Surface Pro 8 is one of the most energy efficient Surf ace Pro devices ever. • The new Surface Laptop Studio has a 30 percent smaller carbon footprint than its predecessor, the Surface Book 3 13” . 3 • Energy-saving mode, a new low-power standby mode for Xbox consoles, uses as little as 0.5W. A year of progress and impact to get to carbon negative by 2030. 17