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Surface Pro 8 running Windows 11. 17% Total energy consumption for the Surface Pro 8 is 17 percent smaller than Pro 7. >80% Energy-saving mode can reduce Xbox power usage in standby mode by over 80 percent. Reducing the footprint of distribution Microsoft is an active member in the Global Logistics Emissions Council (GLEC), an industry collaboration through Smart Freight Centre, committing to reducing logistics emissions through sustainable freight initiatives. Microsoft uses this framework to calculate and measure the carbon impact of its Scope 3 transportation emissions. 7 For shipping, we have an intelligent platform to measure our emissions impact down to individual shipments, and a carbon emissions budget has been developed utilizing the same methodology. In our distribution network, this year we finished a complete conversion of our primary distribution center in Europe to 100 percent renewable energy. This facility now generates 1.3 million kWh from solar energy and avoids 690 mtCO 2 annually. Through FY22 we will plan to convert our US distribution centers to 100 percent renewable energy through solar panel installations and using green renewable sources. We are also building more sustainable shipping options, such as the delivery option launched in December 2021 to avoid higher-carbon air freight, to give customers a choice of more sustainable options when ordering from Microsoft. Boosting efficiency of devices in use For Microsoft devices, energy efficiency is a balance of hardware and software innovation. This year, overall device and console use phase emissions grew as a result of higher sales and usage from customers reliant on these products during the pandemic. That being said, several of our newest products launched in 2021 were designed to be the most energy efficient devices in their product lines, including the Surface Pro 8 and Surface Laptop 4 running Windows 11. The most recent iterations of the Xbox Series X|S have improved our awareness of full ecosystem energy usage from consoles, information which is critical to future energy efficiency improvements and emissions reductions. Software design can also increase efficiency. We are focused on offering low-emissions usage options such as Energy-saving mode on Xbox, which can reduce power usage during standby mode from 15 W down to 0.5–2 W, as well as Xbox Cloud Gaming, which will be powered by Azure datacenters running on 100% renewable energy by 2025. With the release of energy-saving mode, we are updating the initial bootup experience for users to provide clear messaging to enable user understanding of power modes, while encouraging them to implement energy-saving mode on their consoles. This will be paired with a reduction in idle and shutdown timers to continue to improve power consumption during console idle periods. Providing transparency for customers To increase transparency for customers and stakeholders, we publish LCA results for our Xbox consoles and Surface devices. The LCA results are contained in our Ecoprofiles , along with information about the product’s material composition, energy consumption, packaging, ecolabels, product recycling, and other environmental attributes. We have also developed a new, dynamic way for commercial customers to gain insight into the carbon footprint of their entire Surface device fleets. The Microsoft Surface Emissions Estimator enables sellers to work with customers and estimate the carbon impact of the Surface devices and key accessories they purchase from us. Getting to carbon negative (continued) 28

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