Driving transformation (continued) Delivering transparency on Microsoft product emissions While the Microsoft Cloud for Sustainability may be the first standalone sus tainability-focused product at Microsoft, it’s not our first work on emissions tracking and reporting. For more t han two years, we have pioneered tools and features to provide a close to real- time view of our products’ footprint, and we continue to deliver more transparency to customers. The Emissions Impact Dashboard provides customers with transparency into their carbon emissions resulting from their cloud usage, making Microsoft the only cloud provider to provide full transparency to customers across all three scopes of emissions. Using AI and advanced analytics, the Emissions Impact Dashboard shows reduction trends for customer cloud usage over time, providing the ability to forecast cloud emissions and simplify carbon reporting. It uses consistent and accurate carbon accounting to quantify the impact of Microsoft cloud services on customers’ environmental footprint and can compile the information into reports for voluntary or statutory reporting requirements. This solution became generally available in Q3 2021. Find out more on the Emissions Impact Dashboard The Microsoft Surface Emissions Estimator is a new, dynamic way for commercial customers to gain insight into the carbon footprint of their entire Surface device fleets. The Estimator u ses state-of-the-art carbon assessment technolo gies to enable customers to get more accurate estimations of the carbon impact of the Surface devices they purchase from us. Taking the customer on a journey through a Surface product’s lifecycle, the Estimator provides a visual indication of improvements over previous product models, highlights some of the changes made to reduce carbon emissions, and estimates carbon reductions associated with deployments of new Surface models. Customers can learn more about the impact of Surface products on their Scope 2 and 3 emissions from the Microsoft support team, who started to use the Estimator to provide reports to commercial customers in late 2021. The Microsoft Teams Carbon Avoidance Screen posts a remote meeting summary of avoided carbon based on the distance between the organizer and the participant. The goal is to encourage people to use Teams’ remote capabilities rather than travel for meetings. This will pilot with a few select customers in 2022. For Windows energy usage, we are co-innovating with third parties to help inform customers about the carbon footprint associated with their computing. One partner, elow (formerly CSN Energy), was able to reduce use-phase carbon emissions up to 6 percent through a co-innovated elow Carbon App by providing guidance to users to charge their computers based on the real- time carbon intensity of the electric grid. Another, AVOB, provides more accurate energy consumption data to office workstations as well as automated mechanisms to optimize energy consumption, enabling up to a 50 percent reduction in energy usage while increasing performance and computer lifespan. Reflective of the innovation we continually pursue, some of these tools have more advanced methodologies than Microsoft currently uses for its corporate carbon disclosure. 32 Providing solutions for specific sustainability challenges We have found new opportunities to use Microsoft solutions to more sustainably manage operations. We started with our own operations and are expanding their use beyond our direct business activities. Managing buildings and spaces Microsoft is acceler ating sustainability through Smart Places, with IoT and AI to optimize the way buildings, campuses, and cities consume and deliver resources and create efficienci es. Based on Azure IoT, Smart Places include data-driven technologies for monitoring and managing carbon, water, and waste in buildings to turn inefficiencies into o pportunities to reduce environmental impact. Organizatio ns can optimize energy management and reduce carbon emissions by using predictive monitoring to help manage equipment performance and energy consumption and to explore grid-interactive efficient buildings a nd infrastructure. Providing visibility ac ross supply chain Microsoft Dynamics 3 65 Supply Chain Insights breaks down data silos by connecting and taking inputs from enterprise resource planning and supply chain systems across an organization. Using industry data models and AI-powered weather and environmental risk signals from Bing and third-party sources, operations can get a better view of climate-related risk to build a more resilient supply chain. For more than two years, we have pioneered tools and features to provide a close to real-time view of our products’ footprint, and we continue to deliver more transparency to customers.