Driving collective action Transitioning to a global circular economy takes an ecosystem of aligned partners. We seek transformational partnerships that help develop and deliver research, guidance, and implementation roadmaps that enable the circular economy. Collaborating as a Partner to the Ellen MacArthur Foundation In July 2021, we advanced our relationship with the Ellen Mac Arthur Foundation from Member to Partner, elevating opportunities for Microsoft employees to learn and engage on topics of the circular economy through community platforms, workshops, events, courses, and collaborative projects. Leading on packaging innovation In January 2021, Microsoft kicked off a project with members of the Ellen MacArthur Foundation Network (including Aquafil, BASF, Berry Global, CHEP/Brambles, Cisco, the Estée Lauder Companies, Flex, Mainetti, Mondi, and SCG) to create a circular packaging solution to replace the existing linear path plastic-based stretch wrap that is used to stabilize and protect products in transit. This cross-sectoral group is researching and piloting three different pathways to eliminate single-use stretch wrap used in a linear path: replacing stretch plastic with a compostable film, implementing reusable materials for securing pallets, and improving the recovery of single- use, linear plastic-based film for higher value and closed loop recycling solutions. The pilots and results will be detailed in a white paper to be published in Q2 of 2022. Driving standards with the Capital Equipment Coalition North America In January 2021, Microsoft became a founding member of the Capita l Equipment Coalition North America alongside DLL, GE Digital, Philips, and SAP and in partnership with the U.S. Chamber of Commerce Foundation and the Platform for Accelerating the Circular Economy (PACE). We joined the Coalition to support the capital equipment industry’s acceleration to a closed loop model that preserves and recovers the value of materials across a product’s lifecycle, leading to reduced waste and carbon emissions. As a group, we’re working towards circularity standards and methodology that measures the environmental impacts of “X as a Service” models compared to traditional ownership models. 10 Microsoft is collaborating with 10 other companies to test circular packaging solutions to replace stretch wrap packaging. Delivering research, guidance, and roadmaps that enable the circular economy. Designing new solutions with Circular Electronics Partnership An alliance of international organizations and their member c ompanies, the Circula r Electronics Partnership is committed to driving a coordinated transition towards a sustainable and economically viable circular industry by creating alignment, avoiding duplication, and stimulating ambitious circular action across the electronics value chain. The Partnership builds off the collaboration that produced A New Vision for Circular Electronics and convenes seven global organizations and their respective members: the Global Electronics Council (GEC), the Global Enabling Sustainability Initiative (GeSI), International Telecommunications Union (ITU), Platform for Accelerating the Circular Economy (PACE), Responsible Business Alliance (RBA), World Business Council for Sustainable Development (WBCSD), and World Economic Forum (WEF). The partnership is the first time that experts, business leaders, and international organizations will co-design solutions around the circular electronics industry and will establish a network to elevate the action and ambition of the industry in a coordinated way. Enabling systems change (continued) 73