Scope 3 category Emissions calculation methodology Scope 3 Microsoft calculates and reports Scope 3 emissions for all relev ant categories. The following table summarizes which categories are relevant and a description of the methodology and emission factors used. Scope 3 category Emissions calculation methodology Supplier data percentage Supplier data percentage * * Purchased goods and services This category includes emissions from upstream purchasing of goods and services, including direct and indirect goods. Microsoft uses its suppliers’ CDP Supply Chain responses to determine Scope 1, Scope 2, and upstream Scope 3 emission factors (mtCO 2 e/$ revenue) . The latest available respons es are used, so this report's inventory considers 2021 submissions (i.e. 2020 data). Microsoft estimates emissions from CDP Supply Chain respondents by multiplying the CDP-derived factor by the annual spend with the supplier. All other spend is mapped to corresponding industry sectors and then multiplied by cradle-to-gate emission factors by sector from UK Defra’s “UK Defra, Table 13 – Indirect emissions from the supply chain. March 2014”—updated per the latest inflation and currency conversion rates. Corporate-wide expense data for all company divisions is obtained from the finance department. Industry sectors already included in Scope 1 and Scope 2 (such as electricity purchases) and other Scope 3 categories (such as capital goods) were removed to prevent double counting. Global warming potentials (GWP) values are derived from the underlying CDP Supply Chain-based responses and Defra data sources. 79 Capital goods This category includes emissions from upstream purchasing of capital goods , including server equipment and other long-term assets. Microsoft uses its suppliers' CDP Supply Chain responses to determine Scope 1, Scope 2, upstream Scope 3 emission factors (tCO 2 e/$ revenue) . The latest availabl e responses are used, so this report’s inventory considers 2021 submissions (i.e. 2020 data). Microsoft estimates emissions from CDP Supply Chain respondents by multiplying the CDP-derived factor by the annual spend with the supplier. All other spend is mapped to corresponding industry sectors and then multiplied by cradle-to-gate emission factors by sector from UK Defra’s "UK Defra, Table 13 – Indirect emissions from the supply chain. March 2014"—updated per the latest inflation and currency conversion rates. Corporate-wide expense data for all company divisions is obtained from the finance department. Industry sectors already included in Scope 1 and Scope 2 (such as electricity purchases) and other Scope 3 categories were removed to prevent double counting. GWP values are derived from the underlying CDP Supply Chain-based responses and Defra data sources. 45 Appendix D (continued) * Represents the percentage of emissions calculated (by category) using data obtained from suppliers or value chain partners. Scope 3 category Emissions calculation methodology Supplier data percentage * Purchased goods and services This category includes emissions from upstream purchasing of goods and services, including direct and indirect goods. Microsoft uses its suppliers’ CDP Supply Chain responses to determine Scope 1, Scope 2, and upstream Scope 3 emission factors mtCO 2 e/$ revenue). The latest available responses are used, so this report's inventory considers 2021 submissions (i.e. 2020 data). Microsoft estimates emissions from CDP Supply Chain respondents by multiplying the CDP-derived factor by the annual spend with the supplier. All other spend is mapped to corresponding industry sectors and then multiplied by cradle-to-gate emission factors by sector from UK Defra’s “UK Defra, Table 13 – Indirect emissions from the supply chain. March 2014”—updated per the latest inflation and currency conversion rates. Corporate-wide expense data for all company divisions is obtained from the finance department. Industry sectors already included in Scope 1 and Scope 2 (such as electricity purchases) and other Scope 3 categories (such as capital goods) were removed to prevent double counting. Global warming potentials (GWP) values are derived from the underlying CDP Supply Chain-based responses and Defra data sources. 79 106 (