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Funding innovation To achieve net zero emissions globally, we must reduce carbon emissions across every sector and scale carbon markets as much as possible, as soon as possible. From the outset, the Climate Innovation Fund (CIF) has identified and prioritized investment in sectors that have the largest carbon reduction and removal potential globally and where Microsoft’s carbon footprint is greatest. We also make strategic philanthropic investments, like our $100 million donation to Breakthrough Energy’s Catalyst initiative, to help accelerate and scale new carbon solutions. Our initial CIF inve stments included innovations in market-enabling technologies such as climate impact certification, forest carbon analytics, and carbon transformation, plus industry-specific carbon reduction via sustainable fuels, distributed energy integration, and supply chain optimization technologies. Additionally, we have made investment commitments in carbon reduction solutions for global communities in emerging economies, including India and Africa, as well as clean energy access solutions for communities in the United States. Enabling systems change (continued) New CIF investments in 2021 include: Market-enabling Climate impact certification SustainCERT is a software-enabled carbon emissions accounting and ve rification platform reimagining a future where issuance of high-quality carbon credits and other impact claims becomes scalable with integrity. SustainCERT has certified over 1,200 projects around the world. 8 AI-enabled forest carbon exchanges NCX (formerly SilviaTerra) is a science-driven forest carbon marketpla ce delivering large-scale, immediate impact for climate and communities. By using high integrity data to generate carbon credits that connect corporations to family forests, NCX is democratizing access to markets while enabling real climate action. In 2021, nearly 2,500 participating landowners with 4.3 million forested acres committed to defer their timber harvest. 8 Transformation to low-carbon materials Twelve is a carbon transformation company turning carbon dioxide in to valuable materials and products. Its solution offers a pathway to replace fossil-derived carbon in essential products ranging from detergents to automotive parts. In 2021, Twelve produced the world’s first jet fuel made from CO 2 using electrolysis. The CIF investment is supporting the scale-up of Twelve’s system to industrial scale. With NCX’s science-driven forest carbon marketplace, nearly 2,500 participating landowners with 4.3 million forested acres committed to defer their timber harvest in 2021. Industry decarbonization Sustainable fuels LanzaJet is a sustainable fuels technology company and producer dedic ated to decarbonizing hard-to- abate sectors, such as aviation. LanzaJet is constructing a renewable fuels plant in Georgia called Freedom Pines Fuels that will produce 10 million gallons of SAF and renewable diesel per year from sustainable ethanol, including from waste-based feedstocks. 8 Distributed energy resources AutoGrid delivers a suite of distributed energy applications th at allow utilities and energy service providers to deliver clean, flexible power. In 2021, AutoGrid enabled a set of unified demand response and distributed energy resource programs totaling 165 MW in Texas, enabling peak plant flexibility for both grid resilience and renewable integration. 8 Solar performance assurance Omnidian provides solar system performance management for r esidential, commercial, and industrial clean energy generation. Omnidian’s network of assets include 326 MW * , with incremental production from Omnidian’s services resulting in 14,090 mtCO 2 avoided in 2020. ( * These figures do not include Omnidian’s systems under backup management. ) 8 Emerging economies Green growth in India Eversource Capital’s Green Growth Equity Fund is committed to a ccelerating India’s rapidly growing climate innovation sectors, spanning electric mobility, renewable power, and circular economy solutions. To date, Eversource Capital’s portfolio companies have generated 330 MWh of renewable power, resulting in 290,000 mtCO 2 avoided. 8 36

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