Contents Overview Foreword 4 2021 progress 6 How we work 7 Feature story: Emp loyee engagement 9 Commitments and progress 11 About this report 13 Carbon negative Our approach 16 Getting to carbon negative 20 Reducing Scope 1 and 2 e missions 21 Feature story: 100 /100/0 carbon-free energy 23 Reducing Scope 3 emissions 25 Removing carbon 30 Driving transformation 31 Enabling systems change 34 Key trends 41 What’s next? 42 Resources 43 Water positive Our approach 45 Getting to water positive 48 Reducing our water footprint 48 Replenishing water 50 Improving access to water 52 Driving transformation 53 Enabling systems change 55 Key trends 58 What’s next? 59 Resources 60 Zero waste Our approach 62 Getting to zero waste 65 Driving transformation 69 Enabling systems change 71 Key trends 74 What’s next? 75 Resources 77 Ecosystems Our approach 79 Taking responsibility for our land f ootprint 81 Driving transformation 82 Enabling systems change 84 Key trends 87 What’s next? 88 Resources 89 Appendix Appendix A: How we report 91 Appendix B: Commitments 92 Partnerships 93 Memberships 93 Recognitions 94 EPE AT 95 Appendix C: Endnotes 96 Appendix D: Section 1: Our environmental data 97 Independent accountant’s revi ew report 112 Section 2: Additional env ironmental indicators 113 Appendix E: Policy 117 For the best experience, we reco mmend using the free software Adobe Reader, or iBooks if viewing on an Apple mobile device. Interactive functionality may be limited when viewed in a web browser. This report is part of the Microsoft CSR an d sustainability reporting suite. Visit the Microsoft reports hub 2.5M metric tons of carbon removal contracted in FY21 and FY22 1.3M cubic meters of water replenishment projects funded in FY21 15.2K metric tons of waste diverted from landfills 24 petabytes of environmental data now available 2