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Appendix D (continued) Similarly, the waste inventory includes the mass of waste generated from operations within Microsoft’s operational control that are landfilled, incinerated, recycled, reused, and composted for both non-hazardous and hazardous categories. This waste inventory supports progress tracking against the commitment of diverting 90% of operational waste at datacenters and campuses. Reported data for ecosystems includes the total area of land that has been funded and protected based on the presented definition in table 1.10 for reporting criteria. Microsoft’s land protection commitment was established in FY20 therefore reported data for FY21 represents progress for the first year. Currently the waste inventory does not include waste from construction and deconstruction activities. Reported operational waste does not include impact from business group GitHub. Data across metrics currently excludes impact from the ZeniMax acquisition completed in March 2021. Both GitHub and ZeniMax impacts are estimated to be under the significance threshold and will be included in the next report. These items are part of Microsoft’s continuous data improvement activities and will be included and highlighted accordingly in the next reporting cycle. 1.9 Methodology and emission factors Carbon Scope 1 and 2 Primary data is used to calculate emissions for both Scope 1 and 2 emissions. Estimates are used where primary data is not available. Activity data is collected internally and stored in an internally developed data platform which then applies the corresponding emission factors to calculate emissions. Microsoft uses the IPCC Fourth Assessment when it comes to applying global warming potential values. Scope and source Emissio n f actor source Scope 1 (all f uels) EPA Emission Factor Hub. March 2018. Scope 2 Electricity (US) Year 2019 eGRID Subregion Emission Factors: eGRID 2019, February 2021. For market- based emissions the factors presented are used as needed. For regions where residual emission factors are available we have 100% renewable energy purchases, therefore not currently applicable. Scope 2 Electricity (international unless otherwise sourced) IEA (2021), Emission Factors Scope 2 Electricity (Australia) Year 2020 factors from “Table 46: Scope 2 and 3 emissions factors - consumption of purchased electricity by end users”, emission factors for Scope 2. National Greenhouse Gas Accounts (NGA) Factors, August, 2021. Scope 2 Electricity (Brazil) Year 2020 factors from the Brazilian Ministry of Science, Technology, Innovation and Communication: Fator médio - Inventários corporativos. Scope 2 Electricity (Canada) National inventory report 1990-2019. Annex 13. Year 2019 factors. From 2021 release. Scope 2 Electricity (India) CO 2 : Baseline Carbon Dioxide Emission Database, Version 16.0. India Central Electricity Authority. March 2021. CH 4 /N 2 O: “CO2 Emissions from Fuel Combustion (2021 Edition).” IEA. Paris. Scope 2 Electricity (UK) 2021 Government GHG Conversion Factors for Company Reporting: Methodology Paper for Emission Factors. Year 2019 factors from June 2021 release. 105

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