About this report Transparent and accountable reporting on progress S y s t e m s c h a n g e T r a n s f o r m a t i o n O p e r a t i o n s Carbon Waste Water Ecosystem A key principle of our work is transparency. This report, published annually, includes our strategy, progress against our goals, and key challenges and trends we see in this work. We also publish our environmental data, which is included in Appendix D. Deloitte & Touche LLP performed a review relating to specified information within Section 1 of Appendix D. We continue our work to provide leading transparency, visibility, and reliability in our non-financial reporting. Read about how w e report in Appendix A Read about our environmental data in Appendix D How we think about sustainability Layers of inc reasing impact We think about Microsoft’s approach to sustainability in layers of increasing impact and have structured this report accordingly in chapters across our commitments in carbon, water, waste, and ecosystems. Each chapter follows this approach, as outlined here and on the following page. Operations We start with taking accountability for our own operational footprint, which is relatively small. For example, we account for less than .03 percent of carbon emissions globally. Transformation We then look at how Microsoft technology can help our customers and partners power their environmental sustainability. Systems change We also look at Microsoft’s biggest bets in policy, investments, catalytic partnerships, and research and development. Endnotes are used throughout the report; all references are hyperlinked and a full text explanation of all endnotes can be found in Appendix C . 13