Appendix D (continued) Section 1: Our environmental data 1.1 Greenhouse gas (GHG) emissions Table 1 GHG emissions by Scope (mtCO 2 e) FY17 FY18 FY19 FY20 FY21 Scope 1 107,452 99,008 117,956 118,10 0 123,704 Scope 2 Location-Based 2 , 697, 55 4 2,946,043 3,557,518 4,102,445 4 ,745,197 Market-Based 139,066 183,329 275,420 228,194 163,935 Subtotal emissions (Scope 1 + 2 market-based) 246,518 282,337 393,376 346,294 287,639 Scope 3 Category 1 – Purchased Goods & Services 1, 2, 5 4,058,000 4,452,000 4,411,000 4,156,000 4,930,000 Category 2 – Capital Goods 1, 2, 5 1,666,000 2,185,000 2,340,000 2,962,000 4,179,000 Category 3 – Fuel- and Energy-Related Activities (Location-Based) 1 540,000 550,000 650,000 770,000 810,000 Category 3 – Fuel- and Energy-Related Activities (Market-Based) 1, 4 250,000 220,000 270,000 310,000 310,000 Category 4 – Upstream Transportation 1, 2 52,000 53,000 96,000 102,000 225,000 Category 5 – Waste 1,6 700 500 10,500 9,500 5,700 Category 6 – Business Travel 419,020 461,787 476,457 329,356 21,901 Category 7 – Employee Commuting 1 343,000 345,000 411,000 317,000 80,000 Category 9 – Downstream Transportation 1, 3 85,000 98,000 57,000 47,000 45,000 Category 11 – Use of Sold Products 1,3, 5 3,757,000 3,910,000 3,375,000 2,983,000 3,950,000 Category 12 – End of Life of Sold Products 1, 3 31,000 18,000 18,000 17,000 19,000 Category 13 – Downstream Leased Assets 1 700 1,700 800 6,10 0 18,900 Subtotal emissions (Scope 3 market-based) 7 10,662,000 11,745,000 11,466,000 11,239,000 13,785,000 Total emissions (Scope 1 + 2 + 3) 7 10,909,000 12,027,000 11,859,000 11,585,000 14,073,000 1 The reported emissions for this category represent an estimate based on assumptions as ou tlined in section 1.9 and have therefore been rounded. 2 The emissions calculations for these categories have been adjusted in the current year to r eflect improved availability of suppliers' reported emissions via CDP Supply Chain. Previous years have been updated to reflect this change. 3 As the product life cycle assessments for Microsoft devices continue to be improved, the em issions calculations for these categories have been updated for improved accuracy. Energy use assumptions have been updated to reflect our latest understanding of device use via telemetry. In addition, minor error corrections were made. Previous years have been updated to reflect this change. 4 Market-based fuel- and energy-related emissions in FY17—FY20 have undergone a ch ange in calculation methodology to improve accounting of electricity transmission and distribution. 5 Overall increase in Scope 3 categories 1 and 2 emissions is driven mainly by the growth of Mi crosoft's cloud services business and device manufacturing. Increase in Scope 3 category 11 is driven by an increase in sales and usage of devices. 6 As of FY21, waste emissions calculations include emissions for all waste streams, except con struction and deconstruction which is currently not reported and will be part of data improvements going forward. This change due to improved data availability has been retrospectively applied to FY20 and FY19, but not FY18 or FY17 because comprehensive waste data was not available in those years. 7 Market-based emissions included in these values. Values rounded to nearest tho usand mtCO 2 e. 98