Achieving more

2022 IMPACT SUMMARY

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INTRODUC TION

Living our mission and Our mission to empower every person and every
organization on the planet to achieve more has Moving from pledges
embracing responsibility never been more urgent or more necessary. Our
actions must be aligned with addressing the world’s
’ to progress
problems, not creating new ones. At our core, we
need to deliver innovation that helps drive broad
As existing challenges persist and new ones
economic growth. As a company, we will do well
emerge, we must stay grounded in our mission
when the world around us does well. That’s’ why
and our commitments while responding to shifting
we remain steadfast in our commitments to:
needs and expectations.
Disruptive events like wars, pandemics, and recessions
Support inclusive economic growth 5 have a way of centering societal issues that were
sidelined in times of peace and prosperity. These
complex challenges require thoughtful, deliberate,
Protect fundamental rights 9 multistakeholder solutions.
That’s why we activate resources from across our
Create a sustainable future 15 business and our ecosystem—as we’re doing in our
response to the war in Ukraine—and work with our
employees, partners, and customers to maximize But our work is not finished, and the urgency
Earn trust 19
positive impact. of today’s challenges demands that we redouble our
The past few years have revealed another shift— efforts to move from pledges to progress. That means
As we look back on our progress this year, we increasingly, broadband internet and accessible requiring careful measurement and using the power
’ easy to talk about what
should all be proud. But it’s technology must be considered fundamental rights. of data to achieve the level of accountability that we,
’ doing well. As we look ahead, we’ll
we’re ’ continue Without them, people lack access to education, our shareholders, and our customers and partners
to reflect on where the world needs us to do better. healthcare, jobs, and essential services—and risk expect and deserve.
We are living through historic economic, societal, I truly believe if we continue to live our mission, being left behind in today’s digital world. As we do so, we’ll continue to share our learnings
and geopolitical change. As I write this, inflation is embrace our responsibility, and grasp the opportunity transparently—prioritizing progress over perfection—
We remain committed to our mission to deliver
at a 40-year
- high, supply chains are stretched, and technology offers the world, there is no limit to what so we can keep improving and empower others to do
technology that empowers others. I’m proud of our
the war in Ukraine is ongoing. At the same time, we we can achieve together. the same.
ongoing impact at the intersection of technology and
are entering a technological era with the potential to
society—much of which is highlighted in this summary.
power awesome advancements across our economy
and society. This places us at a historic intersection
of opportunity and responsibility to the world Satya Nadella Brad Smith
around us. Chairman and CEO Vice Chair and President

Read Satya’s
’ Annual Shareholder Letter Visit our Reports Hub
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HOW WE WORK

Partnering for Empower Equip

greater impact our employees changemakers

The challenges facing the world Our more than 220,000 employees are the Nonprofits, entrepreneurs, and humanitarian
are complex, and no one company, driving force behind our mission. We strive to organizations address our world’s most
create an inclusive culture where each of them pressing challenges. We make technology,
industry, or country can solve
can thrive. industry-specific solutions, and support
them alone. That’s why we work affordable, so they can achieve more.
across sectors and borders to In their first six months, employees complete diversity
foster collective action and amplify and inclusion (“D&I”) courses on allyship, covering, Provided $3.2 billion in donated and discounted
privilege, and unconscious bias in the workplace. technology (up 29% from last year) to 302,000 nonprofits
impact, driving progress faster and Additional personalized learning experiences enable them that deliver critical services to over 1.2 billion people
farther than we could on our own. to take ownership of their ongoing D&I learning journey. around the world.
Over the next five years, we will double the number of
More than 29,000 employees gave $255 million
nonprofits we reach with technology discounts and grants
(with company match) to over 32,000 nonprofits
to help amplify their impact.
in 88 countries around the world. This represents
a 19% increase over the previous year.
Through our Microsoft Community Training platform,
empowered organizations to deliver job, safety, and
Microsoft employees volunteered over 720,000 hours to
livelihood training to their communities, resulting
causes they care about, including more than 2,500 hours
in 11.5 million registered learners and four million
of free legal aid.
completed courses.

Helped 581 entrepreneurs in more than 60 countries

make a positive impact on issues like climate change,
inequality, and access to education.
This report summarizes our impact for the reporting
period July 1, 2021 – June 30, 2022, except for our
environmental sustainability data, which—due to required
timelines to audit and assure sustainability data after the
close of each fiscal year—covers the previous fiscal year.
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HO W WE W O RK

Activate Engage Enable

our ecosystem local communities systemic change
With more than 400,000 partner organizations Change happens locally. We work closely We work to enable lasting, systemic change,
employing over 22 million people, thousands with communities to understand their including by advocating for public policies
of suppliers, and customers of every size, unique challenges and assets so we can best that move us toward a more inclusive,
in every industry, and in every part of the support them. equitable, sustainable, and trusted future.
world, we have an enormous opportunity
and responsibility to effect change through Invested $7 million with local NGOs in 21 communities Protected personal data and privacy, including through
and 13 countries that have Microsoft datacenters to the Trans-Atlantic Data Privacy Framework and our
our ecosystem.
enable student training and scholarships, technical EU Data Boundary initiative, as well as through Trusted
support, volunteerism, and environmental projects. Cloud Principles, a new initiative to safeguard the interests
Collaborated with 52 of our largest global customers of organizations and the basic rights of individuals using
to advance shared social impact goals such as increasing Helped catalyze more than $70 million in additional cloud services.
access to skills for jobs and using AI for good. funding from other organizations and upskilled more
than 15,000 job seekers across eight US regions through Advocated for carbon reduction, including serving as
Spent more than $7 billion with US diverse-owned Microsoft TechSpark, a program that works to ensure a founding signatory of the Carbon Call to standardize
businesses as part of our Supplier Diversity Program, everyone can benefit from the digital economy. carbon measurement, accounting, and reporting—
a 17% increase from last year. essential components to reach a net zero future.
Allocated over $584 million of our $750 million
Continued to work with our supplier network to uphold commitment since launching our affordable housing Championed the adoption of global responsible
our commitments to accessibility, human rights, worker initiative, supporting the creation or preservation AI standards, including supporting regulations for
health and safety, and the environment through our of over 9,200 housing units in Washington state. ethical facial recognition in Canada and Australia.
supplier code of conduct, training, and capacity building.
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AC TING IN TIMES OF CRISIS

Our response to the war in Ukraine

As we pursue our core commitments, we Defending key infrastructure Supporting people, communities, and organizations
must also be responsive to urgent needs
such as the war in Ukraine. To rapidly Our security teams continue working closely with We completed 173 emergency support missions In partnership with organizations like the Clooney
provide resources where they’re needed Ukrainian government officials and cybersecurity that provided over 23,000 person-hours of Foundation, we’re supporting the International
most, we coordinate local and global action staff at public and private organizations to identify technical support and solution development Criminal Court to deliver justice for war crimes
across our employees, our company, and and remediate threats against Ukrainian networks. to governments, nonprofits, and businesses in Ukraine by using Azure Cognitive Services
our ecosystem. supporting Ukraine. to accelerate the analysis of digital evidence.
We established a secure line of communication
As of July 2022, we committed with cyber officials in Ukraine so we could Xbox partnered with the gaming community to Skype provided over 43 million minutes of free
$257 million in financial and technological act rapidly to help government agencies and raise millions of dollars and donated millions in calling into and out of Ukraine to help families
assistance to the global response to the organizations defend against malware attacks. product to retailer Humble Bundle’s, “Stand with and loved ones reconnect.
war in Ukraine, including support for Ukraine” campaign.
Between January and July 2022, we delivered Dive deeper in our report, ‘Defending
governments, businesses, nonprofits,
more than 120 intelligence tips about threat LinkedIn provided a $2 million Refugee Relief Ukraine: Early lessons from the cyber war’
and humanitarian organizations.
activity to Ukraine-based entities. Fund and $1 million in LinkedIn ad grants to
Learn more about how we provide vital
We’ve helped defend key infrastructure— nonprofits that are helping connect displaced support for disaster response
Beginning in February, the Microsoft Start
assisting with the detection and disruption job seekers with resources and training to
platform (including MSN.com) stopped
of cyberattacks and cyber influence find jobs.
displaying content from Russian state-sponsored
operations, as well as evacuating data to
news outlets RT and Sputnik. We removed RT
the cloud—and we’ve supported people,
news apps from our Windows app store and
communities, and organizations on
de-ranked both sources’ search results on Bing.
the ground.
We’ve banned advertisements from RT and
Sputnik across our ad network and will not place
any ads on these sites.

Photo courtesy of Polish Humanitarian Action

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Support inclusive
economic growth

Microsoft succeeds only when we help the world

around us succeed. That’s why we believe economic
growth should be inclusive—for every person,
organization, community, and country. This starts
with increasing access to digital skills and extends to
closing the data divide and supporting public health.

Learn more about how we support inclusive growth

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s Grow access to skills for jobs

O U R CO M M I T M E N T S O U R I M PAC T O U R CO M M I T M E N T S O U R I M PAC T

Help 25 million people worldwide gain This year, over 23 million people in 249 countries Help skill and recruit 250,000 people— Made 26 grants across 24 countries that will
skills to navigate an increasingly digital and territories engaged with digital skills especially from underrepresented groups— collectively train more than 24,000 individuals in
world by December 2021. content through our global skills initiative, into the US cybersecurity workforce by cybersecurity and place at least 4,700 individuals
bringing the total to 66.2 million learners 2025, and help an additional 24 countries into cybersecurity jobs.
Achieved by target date engaged since the program launched in 2020. with substantial cybersecurity workforce
shortages to increase the number and Since October 2021, we’ve begun collaborations
diversity of candidates. with 181 US community colleges across 44 states
Help train and certify 10 million people Trained 4.6 million people with in-demand to advance cybersecurity skilling.
from underserved communities with in- digital skills and connected them to Commitment in progress
demand digital skills for jobs and livelihood opportunities in the digital economy through
opportunities in the digital economy by 2025. internships, apprenticeships, jobs, and more.

Commitment in progress

Enable five million learners to access computer With nonprofits like Code.org, CSTA,
science skills in our Fiscal Year 2022 by and CSforAll, provided more than six 4.6M
building the capacity of high schools to offer million people with access to computer
people trained
computer science courses and by supporting science education.
other organizations in the computer
on in-demand
science ecosystem. 1,600 tech volunteers helped teach digital skills and
650 computer science classes in 500 high connected to
Achieved by target date schools in the US, British Columbia, Canada, opportunities in the
and Juarez, Mexico. 47% of students served digital economy
identified as belonging to a racial or ethnic
group historically excluded from computer
science careers.
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Protect public health Close the data divide

O U R CO M M I T M E N T S O U R I M PAC T O U R CO M M I T M E N T S O U R I M PAC T

Empower organizations with AI and data Partnered with research institutions to create Increase access to data, a key tool for Since April 2020, helped launch 23 data
science to help them improve the health of novel data and AI-driven solutions for public addressing societal and business challenges, collaborations with nonprofits, universities,
people and communities worldwide through health challenges such as sudden infant by establishing 20 new data collaborations companies, and governments to promote
our five-year, $60 million investment in AI death syndrome, childhood blindness, with nonprofits, universities, companies, equitable access to data in the areas of
for Health, launched in 2020. cancer, and leprosy. and governments by 2022. sustainability, health, and equity and inclusion.

Commitment in progress Achieved by target date

Continue to support individuals, organizations, From the early days of the pandemic
and communities as they respond to and through June 2022, more than $414 million
recover from the COVID-19 pandemic. has been committed in money, technology,
and other resources to support continued
COVID-19 response efforts, including research
collaborations and COVID data dashboards
to help inform policy and decision making.

$414M
committed in money,
technology, and other 23 data
resources to support
continued COVID-19
collaborations
response efforts with nonprofits,
universities, companies,
and governments
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STORIES OF IMPAC T WHAT WE’RE LE ARNING

Empowering youth from underserved We have learned that skills alone aren’t
communities in South Africa enough. We need to help people better prepare
for and connect to jobs. So, we’ve refined our
More than 66% of South Africa’s unemployed focus to help people build skills for jobs, including
are young people. Launched in partnership offering the right skills and credentials for in-
with Nedbank and nonprofit partner Afrika demand jobs, supporting wrap-around services
Tikkun, the DigiSkills e-learning platform aims like mentorship, and fostering connections to jobs
to help young people onto a digital career path. and networks.
By the end of 2021, 1,000 students completed
the training, with over 400 finding career Equity of access and participation in computer
opportunities. Another 4,000 are expected science education is vital. We’re expanding
to complete the training in 2022. “The fact that our focus to better address this, both through
we take someone from no prospects to having our TEALS program and by providing grant
a sustainable income in under two months is support to build capacity and scale in the
remarkable,” said Nedbank’s Ramotse Phalatse. broader ecosystem.

There is a severe shortage of qualified

Read more about our DigiSkills partnership instructors to teach cybersecurity. In addition
to supporting educational institutions, there is
an opportunity to train industry professionals to
help build a more inclusive pipeline of qualified
cybersecurity professionals.

Open data is important for impact, but data

doesn’t always need to be fully “open” to be useful.
“I enjoy waking up in the morning Even if data can’t be made public due to privacy
and having a purpose in life. This opportunity or commercial sensitivities, it can often be made
has allowed me to become self-sustainable more accessible through trusted data-sharing
and to improve my family’s living standards. scenarios. We must strive to look at how we can
I am now able to ensure our monthly bills are be “more open” with data and less siloed.
paid and we are all comfortable. It feels good
to be able to provide for your family.”
David Ngomane, 26, For more inclusive economic growth reports,
Developer at MLab visit our Reports Hub
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Protect
fundamental
rights
We unequivocally support the fundamental rights
of people, from defending democracy, to protecting
human rights, to addressing racial injustice and
inequity. And, as education, healthcare, and other
critical services become increasingly dependent
on technology, access to broadband and accessible
technology are also fundamental to a more
equitable future.

Learn more about how we protect fundamental rights

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Protect human rights Safeguard democracy

O U R CO M M I T M E N T S O U R I M PAC T O U R CO M M I T M E N T S O U R I M PAC T

Aspire to leadership in human rights and Our Devices’ Responsible Sourcing program Preserve, protect, and advance democracy by Provided AccountGuard nation-state threat
serve as a catalyst for action by others in conducted risk assessments (comprising promoting a healthy information ecosystem, notification service in 32 countries, protecting
the tech sector and beyond. environmental and social criteria) of 100% of our safeguarding electoral processes, and over 4.4 million accounts of election officials,
active factories—a supply chain that employs advocating for corporate civic responsibility. human rights organizations, journalists,
971,400 workers, including 11,334 international and other organizations essential to a
migrant workers. healthy democracy.

Resolved all 160 cases raised for issues like Expanded ElectionGuard—a free, open-source
wages, benefits, and working hours through the software development kit—to six new partners,
anonymous Workers’ Voice Hotline, available to
313,484 workers across 227 factories through
4.4M broadening the number of voting system
manufacturers implementing this verifiability
our Devices’ Responsible Sourcing program. accounts protected, technology, increasing ways of voting in the US
including those of and internationally, and reaching more voters.
elections officials, human
Advocate for fair and humane immigration Continued to advocate for immigration reform rights organizations, Continued five local news pilot collaborations
policies as an integral part of our society’s and the protection and strengthening of the journalists, and more spanning 23 newsrooms in the US and Mexico
growth and development. US Deferred Action for Childhood Arrivals to protect and preserve local journalism, while
(DACA) program, including offering pro bono extending our journalism initiative globally
legal services to 99 DACA recipients. through partnerships with the Thomson Reuters
Foundation, Report for the World, and others.
Preserve and enrich cultural heritage by Surpassed our commitment to invest
empowering people and organizations with $10 million over five years, including through
AI to help them preserve the languages we a project in partnership with the Hellenic
speak, the places we live, and the artifacts Ministry of Culture and Sports in Greece
we treasure, including through $10 million launched in October 2021. “Ancient Olympia:
in investments by 2024. Common Grounds” has allowed more than
160,000 people around the world to experience
Achieved by target date a historically authentic digital restoration of
the ancient ruins of Olympia through a web
experience, mobile app, and HoloLens 2
exhibition at the Athens Olympic Museum.
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Support humanitarian action and emergency response Ensure equitable access

O U R CO M M I T M E N T S O U R I M PAC T O U R CO M M I T M E N T S O U R I M PAC T

Empower humanitarian organizations and Responded to six humanitarian emergencies Bring affordable broadband to more than Helped more than 50 million people in
crisis-affected communities to prepare for, in five countries through donations, 43 million people in underserved communities unserved rural communities globally gain
respond to, and recover from emergencies, technology, services, and employee giving, around the world by July 2022, and expand our access to affordable broadband since 2017.
including through our AI for Humanitarian including our response to support people work to US cities and states with significant Expanded our work to eight US cities and
Action initiative. impacted by the war in Ukraine. broadband adoption gaps. five states with significant broadband
adoption gaps as part of our commitment
Completed 12 AI for Humanitarian Action Achieved by target date to address racial inequity.
projects and launched eight new projects
covering disaster preparedness, engagement Launched the Microsoft Digital Equity
with vulnerable populations, and the use Dashboard to help US policymakers and
of image recognition to support improved communities identify neighborhoods where
health outcomes. funding and programmatic investment can
achieve measurable impact.

Help bridge the disability divide through Added new accessibility features to Windows
a five-year commitment, launched in April 11, including Live Captions, Voice Access, and
2021, to expand accessibility in technology, Focus Mode. And, use of Office Accessibility
the workforce, and workplace. Checker—our ‘spellcheck’ for accessibility—
grew 9X over last year.
12 Commitment in progress
Along with partner companies, launched
AI for Humanitarian the Neurodiversity Career Connector, a
Action projects jobs marketplace for job seekers who are
completed neurodivergent. Since launch, 900+ individuals
have identified a role and connected with
50M+ an employer.
people in unserved
rural communities
gained access
to broadband

Photo courtesy of Team Rubicon

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STORIES OF IMPAC T WHAT WE’RE LE ARNING

Helping artisans in South America Journalism and local news continue to

use the internet to sell their face multiple threats, which is catalyzing action
products to the world across communities and organizations. We’re
learning we can play an important convening
Handicrafts are an important source of role—engaging communities, formerly
income in South America’s remote Gran competing newsrooms, and potential sources
Chaco region. Microsoft Airband partnered of funding—to foster the kinds of collaboration
with Avina Foundation to bring broadband that will be essential to progress.
access and internet training to the region,
making it possible for 1,600 women Through data, innovation, and advocacy
from the Pilagá Indigenous Community to address policy and practice, we continue
to find a global market for their products. to effect change. Our digital equity strategy
Through the program, women are leading is an example of how we help shape public
their own ventures online, which is extending investments for communities most impacted
internet service and usage to the people by the digital divide and provide insight to local
in their community. decision makers on critical digital access needs.

Technology can help create an equitable

Discover how broadband access
Disco environment for people with disabilities to learn,
is changing lives
work, and play. Our goal is to make accessibility
features that are easy to find and use. To help
with this, we must continue to actively seek out
engagement from the disability community to
inform our approach.

“When I was nine years old, I learned to make crafts

with my mother, and she from my grandmother.
Before, we had to wait for a buyer who came
once a year. It was expensive. Now, once I publish
on the Internet, I receive messages from clients
in one or two hours.”
Karen Herrera
Artisan and program participant For more fundamental rights reports,
visit our Reports Hub
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SPOTLIGHT Increasing representation and strengthening inclusion

Address racial O U R CO M M I T M E N T S O U R I M PAC T W H AT W E ’ R E L E A R N I N G

injustice and inequity Invest an additional $150 million

to strengthen our culture of
As of June 2022, we are 116% of the way to
our goal for Black and African American
We continue to make meaningful
progress in D&I supported by executives
inclusion and double the number people managers (below director level), who influence change in their teams.
of Black and African American, and 92% of the way for Black and African For all Partners and Executives, we take
In 2020, we made a commitment to help address racial injustice
and Hispanic and Latinx people American directors+ (people managers into account their individual progress
and inequity experienced by Black and African American
managers, senior individual and individual contributors). Additionally, when determining their impact, rewards,
communities. We outlined a holistic approach across three key contributors, and senior leaders we are 46.5% of the way for Hispanic and and promotion. We also provide them
areas—increasing our representation and strengthening inclusion, in the US by 2025. Latinx people managers (below director with D&I coaches to help them confront
engaging our ecosystem, and strengthening our communities— level), and 57.6% of the way for Hispanic obstacles to change and with updated
with a goal of expanding our learnings to other racial and ethnic Commitment in progress and Latinx directors+ (people managers Inclusive Hiring Training, which is
minority communities in the US and around the world. and individual contributors). required for all managers.
Engaging our ecosystem
O U R CO M M I T M E N T S O U R I M PAC T W H AT W E ’ R E L E A R N I N G

By June 2023, grow our investment Met our goal to create a $100 million By listening to the individual needs of
activity with Black and African program focused on mission-driven communities, suppliers, and partners, we
American-owned financial banks and committed $50 million to have adapted our programs to meet their
institutions, double the number of create an investment fund focused on needs more effectively. For example, we
Black and African American-owned supporting Black and African American- developed training workshops through
approved suppliers and spend an owned small businesses. AMP’D, our supplier mentorship and
incremental $500 million with those development program, to help advance
and existing suppliers, and increase We are more than 90% of the way skills and readiness, enhance productivity
the number of Black and African towards our commitment to spend an and collaboration, and develop business
American-owned partners in the incremental $500 million with double growth strategies.
US as part of our Black Partner the number of Black and African
Growth Initiative. American-owned suppliers.

Commitment in progress The number of identified partners

in our Black Partner Growth Initiative
has increased by more than 150%,
surpassing our initial goal.
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S P O T L I G HT

Strengthening our communities

O U R CO M M I T M E N T S O U R I M PAC T W H AT W E ’ R E L E A R N I N G

Use data, technology, and partnership to help Coordinated over 80 Justice Reform Initiative Enrolled more than 1,500 community-based As every community faces a unique set of
improve the lives of Black and African American partnerships with 70 organizations to help organizations working across 1,100 US communities challenges and opportunities, we depend on
people, which includes our employees and their 145 communities expand access to data-driven to receive technology and services through our the expertise of nonprofits and organizations
communities, in the areas of justice reform, skills insights and advance a more equitable system Nonprofit Tech Acceleration program. embedded within communities. We work
and education, broadband connectivity, and of justice and public safety. collaboratively with them to create data and
nonprofit support. Completed the first year of programming for technology-enabled solutions designed to fit
Established partnerships with 18 Historically 50 Black and African American-led community- the unique needs of the organizations and the
Black Colleges and Universities and provided based nonprofits, providing $15 million in grants, communities they serve.
$8 million in funding in the past two years. capacity building support, and tech enablement
services reaching nearly 8,000 people.
Continued our work in eight US cities to increase
digital equity for racial and ethnic minority Expanded our Technology Education and
communities and began addressing broadband Learning Support program to nearly 290 high
availability and adoption across the rural south, schools in 21 cities with large Black and African
with new connectivity partnerships in Alabama,
Georgia, North Carolina, South Carolina, and
American communities to promote equitable
access to computer science education. 80
Virginia covering over 350,000 previously
unserved residents.
partnerships
formed through our Justice
Reform Initiative to help
145 communities advance
more equitable systems of
justice and public safety

Learn more about how we’re addressing racial

injustice and inequity on our Reports Hub
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Create a
sustainable
future
Climate change is the defining issue of our
generation, and addressing it requires swift,
collective action and technical innovation.
We’ve outlined ambitious commitments and
detailed plans to achieve them, and we’re helping
others set and achieve their own climate goals.

Learn more about how we create a sustainable future

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Carbon negative l Water positive

O U R CO M M I T M E N T S O U R I M PAC T O U R CO M M I T M E N T S O U R I M PAC T

By 2030, we will be carbon negative, and Reduced our Scope 1 and 2 (market-based) By 2030, we will replenish more water than Invested in replenishment projects that are
by 2050, we will remove our historical emissions by 58,654 metric tons of carbon we use. We will reduce the water intensity expected to generate over 1.3 million cubic
emissions since we were founded in 1975. dioxide equivalents (mtCO2e). Scope 3 of our direct operations and replenish in meters of volumetric benefits, bringing us
emissions increased by 22.7%. water-stressed regions where we work. to 21 replenishments in nine water basins
Commitment in progress around the world.
In Fiscal Year 2021 and Fiscal Year 2022, Commitment in progress
successfully contracted to remove 2.5 million Provided more than 95,000 people with
Scope 1 metric tons of carbon, meeting our cumulative access to safe water or sanitation through
Direct emissions created two-year goal. our partnership with Water.org.
by our activities
Signed new power purchase agreements
for approximately 5.8 gigawatts of renewable
Scope 2
Indirect emissions from the carbon-free energy across 10 countries, helping 95K+
consumption of the electricity us progress on our pathway to carbon negative. people provided
or heat we use
with access
Scope 3 to safe water
Indirect emissions from or sanitation
all other activities in which NOTE: Due to required timelines to audit and assure our
environmental sustainability data after the close of each
we’re engaged fiscal year, the data in this section covers the reporting period
for our Fiscal Year 2021, from July 1, 2020 – June 30, 2021.

2012 2016 2017 2018 2019 2025 2030 2050

100% carbon neutral. Zero waste AI for Earth launch. Supplier carbon Carbon fee raised to $15. Operate with 100% Become carbon negative, Remove all
Internal carbon campus certification LEED Gold certification engagement in China Water replenishment renewable energy. zero waste, and historical emissions.
fee instituted. for Puget Sound. for new datacenters. launched. Net zero potable goal set. Protect more land water positive.
water. Silicon Valley than we use.
campus groundbreaking.

Our history 2012–2019 Our commitments 2020–2050

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Zero waste Responsible Sourcing

O U R CO M M I T M E N T S O U R I M PAC T As part of our commitment to a more Progress to-date has shown improvement across
sustainable future, we operate an industry- a number of carbon metrics. And the company
By 2030, we will be zero waste across our Diverted more than 15,200 metric tons of solid leading Responsible Sourcing Program— achieved Zero Waste to Landfill Platinum
direct waste footprint. waste across our direct operational footprint
proactively managing issues related to human Certification from Underwriter Laboratories.
that was otherwise headed to landfills
Commitment in progress rights, environment, health and safety, and
and incinerators. Global supply chains provide vital income to
ethics. We work closely with our suppliers to
communities and support economic progress
Reduced single-use plastics in our Microsoft ensure our standards and commitments are
around the world. Creating a responsible supply
product packaging by 18%. met, including our commitment to reduce our
chain is challenging work, but it is crucial to
Scope 3 emissions by more than half, which
advancing Microsoft’s mission and enabling
Five Circular Centers planned, which reuse is critical to our goal to be carbon negative
sustainable development.
datacenter hardware to help manage e-waste; by 2030.
one is open in Amsterdam with others opening
For example, in May 2021, we conducted a Learn more in our Responsible Sourcing report
in Boydton, Virginia, Chicago, Dublin, and
Singapore in 2022. third-party carbon assessment on a strategically
selected pilot study factory in Zhejiang
province, China. Findings from the factory’s
Protect and preserve ecosystems Scope 1 and 2 carbon emissions assessment
indicated the factory was one of the highest
carbon-emitting facilities in its category.
O U R CO M M I T M E N T S O U R I M PAC T
Responsible Sourcing worked with the supplier
We will protect more land than we use by 2025. Contracted to protect over 17,000 acres of to establish sustainability commitments,
land, which is 50% more than the land we followed by monthly reporting and tracking
Achieved by target date use to operate. of key performance indicators.

Through our Planetary Computer, made

24 24 petabytes of data publicly available on

petabytes of data
24 Azure, with over 30 environmental and Earth
observation datasets in an analysis-ready format
Petabytes of data
publicly available —empowering scientists to craft more effective
publicly available
on Azure through strategies to protect and restore ecosystems.
our Planetaryon Azure
NOTE: Due to required timelines to audit and assure our
Computer environmental sustainability data after the close of each
fiscal year, the data in this section covers the reporting period
for our Fiscal Year 2021, from July 1, 2020 – June 30, 2021.
 Overview Inclusive growth Fundamental rights Sustainability Trust Learn more 18

STORIES OF IMPAC T WHAT WE’RE LE ARNING

Grupo Bimbo accelerates its Because carbon data and measurement are
sustainability journey with improving, progress on carbon reduction will
not be linear. As Microsoft and the world mature
Microsoft Cloud for Sustainability
in carbon accounting, we’ll continue to get better
at understanding how our decisions reduce, or
Sustainability has always been an essential sometimes, increase, carbon emissions.
part of everyday business at Grupo Bimbo,
the Mexico-based international producer Carbon removal lacks the common standards needed
of baked goods and snack foods. To help to scale. In January 2021, Microsoft announced the
achieve its ambitious sustainability goals, world’s largest carbon removal purchase in history.
Grupo Bimbo is deploying Microsoft Cloud We’re now working to help build the new carbon
for Sustainability, which helps organizations removal market with integrity and quality. We need
collect, track, and analyze their sustainability the enabling infrastructure to measure, monitor,
metrics. Grupo Bimbo has a comprehensive and verify the quality of carbon removal.
strategy encompassing nutrition, social
It’s hard to make the business case for water
impact, waste, and water. With connectivity
investments because the true cost of water is not
to its data sources becoming established
aligned to its true value. Utility bills only provide
and automated, Grupo Bimbo will spend
some of the data organizations need to manage
less time on manual data collection, and
risks and reduce water use, and they typically don’t
more time understanding the company’s
arrive for months. By installing sensors across our
environmental footprint and making
datacenters, we’ve been able to track water use
decisions that help it meet or exceed its
in real time, so we can monitor reductions and
sustainability goals.
improve water efficiency.

Learn how Grupo Bimbo is connecting

“Microsoft has done a lot of work around “Circularity” supports decarbonization. Activities
data for insights to deliver on carbon goals such as purchasing recycled materials, offering a
sustainability itself, and it was important for us
to work with a technology supplier that shares service model, or keeping materials in use longer
our values.” can reduce the embodied carbon of materials.
This plays a key role in reaching our commitment
Juan Pajón, to cut our Scope 3 emissions in half by 2030.
Business Technology Global Senior Vice
President, Grupo Bimbo

For more sustainability reports, visit our Reports Hub

 Overview Inclusive growth Fundamental rights Sustainability Trust Learn more 19

Earn
trust
At Microsoft, we’re optimistic about the
benefits of technology, yet clear about
the challenges. To drive positive impact
with technology, people need to be able
to trust the technologies they use and
the companies behind them.

Learn more about how we earn trust

 Overview Inclusive growth Fundamental rights Sustainability Trust Learn more 20

Advance cybersecurity and digital safety

O U R CO M M I T M E N T S O U R I M PAC T O U R CO M M I T M E N T S O U R I M PAC T

Invest $20 billion over five years, starting 43 trillion security signals are processed Lend our knowledge and experience to address Released disaggregated gender data from
in 2021, to advance our security solutions, daily, and the insights are used to inform illegal and harmful content online and deliver six years of our Digital Civility Index research
including $150 million to help US government increased protections. our services so they are tools of empowerment to improve understanding of the online risks
agencies upgrade protection. for people and do not contribute, however facing women and girls.
Blocked 34.7 billion identity threats and indirectly, to causing harm.
Commitment in progress 37 billion email threats. Contributed to development of TRUST:
Voluntary Framework for Industry Transparency
Sent over 67,000 nation state-related threat as a member of the Tech Coalition, the industry
notifications to customers over the last four NGO focused on preventing child sexual
years, helping them to protect themselves exploitation and abuse online.
from digital threats.

Build public-private partnerships to address Co-authored a “Commitment to Consumer

increasingly complex cybersecurity threats IoT Device Security” endorsed by more than
and to safeguard the interests of organizations 100 companies, civil society groups, and 43T
and individuals. government agencies from around the world. security signals
Tracked more than 35 unique ransomware
processed daily
families and 250 unique cybercriminal and to inform
nation state threat actors. increased
protections
 Overview Inclusive growth Fundamental rights Sustainability Trust Learn more 21

Respect privacy Develop and use tech responsibly

O U R CO M M I T M E N T S O U R I M PAC T O U R CO M M I T M E N T S O U R I M PAC T

Preserve customers’ ability to control their In 2021, over 26 million people used the Put our principles for the responsible Released our Responsible AI Standard,
data and make informed choices to protect Microsoft privacy dashboard, to control their development and use of AI into practice, which outlines 17 goals aligned to our six AI
their privacy, and advocate for strong privacy data and make meaningful choices about how not only within Microsoft, but by empowering principles, and includes tools and practices
laws that require companies, including ours, it’s used. our customers and partners to do the same to support them.
to be accountable and responsible in their and by advocating for policy change.
collection and use of personal data. Supported the new Trans-Atlantic Data Privacy Published our Responsible AI Impact
Framework and committed to meet or exceed Provide clear reporting and information on Assessment template and guide, which shares
the requirements it outlines. how we run our business and how we work what we have learned about the impact AI may
with customers and partners, delivering have on people, organizations, and society.
transparency that is foundational to trust.
Released 14 Transparency Notes for our
AI platform services to help developers build
responsible AI products and services.

26M+ Shared our open-source tools, including

the new Responsible AI dashboard, to help
people used the
developers build AI technologies responsibly
Microsoft privacy
and identify, diagnose, and mitigate issues
dashboard before deployment.
 Overview Inclusive growth Fundamental rights Sustainability Trust Learn more 22

STORIES OF IMPAC T WHAT WE’RE LE ARNING

NHS uses Azure to spot patients Our Digital Crimes Unit continues to
facing increased risks during surgery innovate and find ways to use its experience
in botnet disruptions to conduct coordinated
operations that go beyond malware. This will
In northeast England, orthopedic surgeons Mike
require creative engineering, sharing of
Reed and Justin Green of Northumbria Healthcare
information, innovative legal theories, and
NHS (National Health Service) Foundation Trust
public and private partnerships.
are exploring how AI can help practitioners better
explain surgical risks and mitigate potential problems. Our Responsible AI Standard sets out practical
The team developed an AI model that applies data approaches for identifying, measuring, and
science and machine learning to historical data on mitigating potential harms, and requires teams
surgical outcomes. Using Microsoft Azure Machine to adopt controls to secure beneficial uses and
Learning and Microsoft’s Responsible AI dashboard, guard against misuse.
the team produces a personalized and detailed patient
assessment model that is easy to interpret. This is As global dialog continues to set new norms
empowering the partnership between the patient, and laws in cyberspace, we believe that industry,
the doctor, and the hospital. Patients can make a academia, civil society, and government need
more informed decision on their procedure, doctors to collaborate to advance the state of the art
and surgical staff can be on the alert for possible and learn from one another.
issues, and hospital schedulers can assign patients
to a facility with a level of care appropriate to their
risk factors. The benefits of the technology have
prompted England’s healthcare sector to expand “In healthcare, AI can’t
’ just be a black box
a variety of AI models across its healthcare system that takes inputs, performs unknown calculations
over the next year. on them, and produces a result. If we’re’ going to
change a patient’s
’ care plan based on the results of
Read more about how AI is unlocking healthcare the application, we need to know why it generated that
solutions in the UK result… with the Responsible AI dashboard, we have the
tools to understand, refine, and explain our outcomes
so we can better serve our patients.””

Dr. Justin Green (pictured, right)

Orthopedic Surgical Registrar, For more trust reports, visit our Reports Hub
Northumbria Healthcare NHS Foundation Trust
 Overview Inclusive growth Fundamental rights Sustainability Trust Learn more 23

Our approach to reporting

TO PI C PR I O R I T I Z AT I O N ,
O U R G OA L M AT E R I A L I T Y, A N D G OV E R N A N CE O U R D I S CLO S U R E S

Microsoft strives to conduct our business Microsoft’s prioritization across Environmental, We inform our disclosure strategies with
in ways that are principled, transparent, and Social, and Governance topics includes a wide careful consideration of commonly used global
accountable to our shareholders and other range of strategic planning processes by our standards, including:
key stakeholders. We believe that doing so senior management and many others across
generates long-term value for our company, the enterprise. It also includes stakeholder Sustainable Accounting Standards Board (SASB)
our customers, and our communities. As we input and careful consideration of the
work to help everyone achieve more, we impacts of our core businesses as they evolve. UN Sustainable Development Goals (SDGs)
are committed to improving our world and Our Board of Directors also provides insights,
reporting our progress. We also share our feedback, and oversight across a broad range Global Reporting Initiative (GRI) for our
Responsible Sourcing Program
learnings and practices to foster industry of environmental and social matters, as
dialogue, inform public debate, and— detailed in our annual proxy statement. The United Nations Guiding Principles
ultimately—help advance greater progress. on Business and Human Rights Reporting
Learn more about our approach to reporting Framework can be found in:
WO R K I N G W I T H O U R S TA K E H O L D E R S
View all of our reports on our Reports Hub Annual Human Rights Report
We know that the decisions we make
affect our employees, customers, partners, We also follow issue-specific
shareholders, suppliers, and communities, standards including:
and we take their voices into account.
We bring outside perspectives into the TCFD (Task Force on Climate-related Financial
company and inform our business decisions Disclosures) report
through a variety of feedback channels.
Greenhouse Gas Protocol

EEO-1 (Equal Employment Opportunity)

diversity disclosure

CDP disclosures
 Overview Inclusive growth Fundamental rights Sustainability Trust Learn more 24

OUR COMMITMENT TO SUSTAINABLE DEVELOPMENT

Supporting the Our Vice Chair and President, Brad Smith, was
appointed as an SDG Advocate in 2021. In this role,
O U R CO M M I T M E N T S S U PP O R T E D T H RO U G H O U R WO R K O N T H E S D G S

UN Sustainable he aids UN Secretary-General António Guterres

Support inclusive Goal 1 No Poverty
on critical issues at the intersection of technology
Development Goals and society, including bridging the digital skills gap
economic growth Goal 2 Zero Hunger
and driving environmental sustainability. Goal 3 Good Health and Well-Being
As part of pursuing our mission and our Finally, while many Microsoft initiatives directly
Goal 4 Quality Education
commitments, Microsoft has contributed and indirectly contribute to progress on all 17 SDGs,
to the Sustainable Development Goals (SDGs) to leverage our resources most strategically and Goal 8 Decent Work and Economic Growth
since 2015, when the United Nations (UN) amplify the impact of our work and that of our
created them. Today, we support the SDGs partners, we focus on four SDGs: Goal 4 – Quality Protect Goal 5 Gender Equality
through our leadership and our investments in Education, Goal 8 – Decent Work and Economic
Growth, Goal 13 – Climate Action, and Goal 16 –
fundamental rights Goal 10 Reduced Inequalities
programs, partnerships, and initiatives—seeking
to unleash the power of digital technology Peace, Justice, and Strong Institutions. Goal 11 Sustainable Cities and Communities
to advance progress across the 17 goals. Our work on the SDGs aligns with and advances our Goal 16 Peace, Justice, and Strong Institutions
In March 2020, we created a UN Affairs team to commitment to create a more inclusive, equitable,
deepen our relationship with the UN. The team sustainable, and trusted future. While the SDGs,
Create a Goal 6 Clean Water and Sanitation
focuses on advancing our partnerships with like our social commitments, are complex and
the UN and its agencies, building relationships span several issues, the table to the right helps sustainable future Goal 7 Affordable and Clean Energy
and identifying new opportunities for to illustrate the core alignment between our
commitments and our contributions to the SDGs. Goal 12 Responsible Consumption and Production
partnerships, advocating for the UN’s priorities
within Microsoft, and supporting our teams Goal 13 Climate Action
Learn more about our work on the UN SDGs
in their engagements and advocacy with the
Goal 14 Life Below Water
UN community.
Goal 15 Life on Land

Goal 9 Industry, Innovation, and Infrastructure

Earn trust
Goal 17 Partnerships for the Goals
Together, we can
achieve more
We’re proud of our progress, but know
there is much more to do and that it will
require all of us working together. Join us.

Discover more at Microsoft.com/impact

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