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Respondent CDP 2007: Microsoft Corporation

General Introduction
<>If like introduction answers enter

 
Section A – 1 Climate Change Risks, Opportunities and Strategy
Question 1(a)(i) – Regulatory risks
<>For question state time period possible associated financial implications commercial risks does climate change present company including regulatory risks associated current and/or expected government policy climate change e g emissions limits energy efficiency standards
Climate change presents wide range risks companies individuals including Microsoft vendors customers suppliers Environmental stewardship central Microsoft’ s business continue play increasingly important role future stakeholders internal external 2006 moving forward 2007 furthered commitment environment focusing efforts sustainability continuing innovation products systems services doing continue track adapt changes physical regulatory environment Microsoft designs software hardware products comply worldwide environmental regulations Heavy metals lead cadmium used packaging plastics Microsoft products company restricts use toxic substances global manufacturing operations proactively work suppliers improve energy efficiency products integrate Design Environment best practices development new products Microsoft invests green building best practices design new buildings renovations existing real estate portfolio best practices include using United States Green Building Council’ s(USGBC) Leadership Energy Environmental Design (LEED) guidelines Microsoft carefully evaluating impacts direct indirect emissions greenhouse gases order understand potential exposure future regulation GHG emissions Microsoft positive climate impact specifically areas products operations built environment Microsoft closely following regulatory developments world anticipate regulations implement programs meet and/ exceed requirements

 
<>Would like provide additional information relating question provided
 No 

 
Question 1(a)(ii) Physical risks
<>For question state time period possible associated financial implications commercial risks does climate change present company including physical risks business operations scenarios identified Intergovernmental Panel climate Change expert bodies sea level rise extreme weather events resource shortages
Microsoft primarily office based company headquarters largest number employees Puget Sound region state Washington Glaciers Cascade Olympic Mountains retreating Puget Sound water temperatures rising faster global average local river stream flows changing local government academic environmental organizations proactive topic climate change effect local region Microsoft continue monitor changes region business work local organizations reduce contributions climate change

 
<>Would like provide additional information relating question provided
 No 

 
Question 1(a)(iii) risks
<>For question state time period possible associated financial implications Apart regulatory physical risks described answers questions 1(a)(i) 1(a)(ii) commercial risks does climate change present company including shifts consumer attitude demand
large company involved constantly evolving product needs Microsoft acquainted shifts consumer attitudes demands Central business creation solutions meet evolving consumer demands Microsoft believes intersection business environment continue critical issue facilitating ability create business strategies carbon agenda result surveyed business customers learn environmental sustainability initiatives perspectives Results survey Microsoft's solutions described answer question b Opportunities

 
<>Would like provide additional information relating question provided
 No 

 
Question 1(b) Opportunities
<>For question state time period possible associated financial implications commercial opportunities does climate change present company existing new products services
Microsoft committed environmental sustainability continuously explores implements new ways preserve environment creating value shareholders following examples 1) Microsoft worked AMR Research— leading business advisory firm focused supply chain enterprise applications generation infrastructure— conduct survey 200 businesses Europe learn approaches environmental sustainability practices findings o Environmental sustainability initiatives important issue companies surveyed departments spending 16% budgets 2004 growing 21% budgets 2007 o important solutions components managing environmental initiatives supply chain management ERP compliance management financial management manufacturing/production operations (These issues addressed Microsoft Dynamics )o environmental initiatives response regulatory compliance pressures implemented primarily local basis o Environmental dashboards considered useful 92% respondents 72% respondents stating Dashboards place 24 months 2) Microsoft Dynamics line business management solutions automate streamline financial customer relationship supply chain processes Microsoft Dynamics developing application companies use implement dashboard manages data greenhouse gases additional sustainability related topics components Microsoft Dynamics application allows companies gain visibility control environmental social initiatives insight financial operational results data used simplify greenhouse gas emissions reporting regulatory required voluntary schemes Global Reporting Initiative Microsoft Dynamics environmental sustainability online newsgroup users discuss best steps achieving environmental sustainability 3) MSN exclusive online media partner Save Selves (SOS) – Campaign Climate Crisis SOS designed global movement combat climate crisis reach people planet television film radio Internet Live Earth 24 hour concert 7/7/07 place seven continents campaign's website (liveearth msn com) provides information individuals action create sustainable environment create innovative media experience video information community interactivity Proceeds Live Earth concert benefit Alliance Climate Protection chaired Al Gore

 
<>Would like provide additional information relating question provided
 No 

 
Question 1(c) Strategy
<>For question state time period possible associated financial implications objectives targets strategies undertaken planning manage risks opportunities detailed questions 1(a) 1(b) include adaptation physical risks
activities Microsoft taken date planning implement future described questions Microsoft feels strongly role environmental stewardship company continue use industry best practices design buildings products services order meet exceed future regulations provide innovative solutions customers

 
<>Would like provide additional information relating question provided
 No 

 
Section A – 2 Greenhouse Gas Emissions Accounting
Question 2(a)(i) – Methodology – Accounting Year
<>Please state accounting year used report GHG emissions

 
<>Would like provide additional information relating question provided
 Yes 
GHG emissions reported CY2006

 
Question 2(a)(ii) – Methodology
<>Please state methodology emissions calculated
 GHG Protocol 

 
<>Please provide additional information
Microsoft calculated greenhouse gas emissions resulting operations using Greenhouse Gas (GHG) Protocol calculation tools office based organizations Corporate Accounting Reporting Standards United States emission factors used latest version United States Environmental Protection Agency’ s (US EPA) Emissions Generation Integrated Resource Database eGRID2006 version 2 1 CY2006 including Scope 3 inventory emissions related leased buildings electricity usage metered separately refrigerants covered Kyoto Protocol

 
<>Please state reporting boundaries data provided questionnaire
Option 4 –

 
<>Please provide additional information
data provided questionnaire includes entities owned company electricity purchased leased buildings separately metered

 
<>Would like provide additional information relating question provided
 No 

 
Question 2(a)(iii) – Methodology – External verficiation
<>Please state information provided externally verified audited
 No 

 
<>Would like provide additional information relating question provided
 No 

 
Question 2(a)(iv) – Methodology – Variations emissions
<>Please provide explanation significant variations emissions year year major acquisitions divestments introduction new technologies
year's response included electricity purchased leased buildings separately metered calculated emissions related HCFC refrigerants used able report air travel emissions accurately according short medium long haul flights addition aspects growth business increased overall emissions compared CY2005 drastic change emission factor reported EPA eGRID Puget Sound region Microsoft headquarters largest campus resides Scope 2 emissions dropped significantly substantial decrease total emissions recently revised emission factor

 
<>Would like provide additional information relating question provided
 No 

 
Question 2(b) – Scope 1 Scope 2 GHG Protocol Year 1 answers
state direct indirect GHG emissions metric tonnes CO2e global Annex B countries having difficulty reporting emissions figures CO2e metric tonnes guidance answering CDP5 questionnaire available
<>Please enter accounting year used report GHG emissions details
31 December 2006

 
<>Total Global Emissions
<>416170 CO2e metric tonnes

 
<>Total Emissions Annex B countries
<>385890 CO2e metric tonnes

 
<>Scope 1 activity emissions globally
<>14730 CO2e metric tonnes

 
<>Scope 1 activity emissions Annex B
<>9820 CO2e metric tonnes

 
<>Scope 2 activity emissions globally
<>137870 CO2e metric tonnes

 
<>Scope 2 activity emissions Annex B
<>113920 CO2e metric tonnes

 
<>Please state MWh electricity purchased consumed company globally
631810 MWh

 
<>Please state MWh electricity purchased consumed company Annex B countries
606370 MWh

 
<>Please state percentage purchased consumed MWh electricity renewables globally

 
<>Please state percentage purchased consumed MWh electricity renewables Annex B countries

 
<>Would like provide additional information relating question provided
 Yes 
Electricity generated renewable energy tracked separately utility providers renewables portfolios Quincy site served utility 100% hydro power note GHG emissions reported CY2006 totals reflect Scope 1 2 3 emissions

 
Question 2(c) – Scope 3 GHG Protocol Year 1 answers
<>Please enter accounting year used report GHG emissions details
31 December 2006

 
<>If possible provide estimates metric tonnes CO2e following categories emissions Use/disposal company’ s products services
<>Microsoft’ s latest operating — Windows Vista — energy efficient operating date features significant changes power management infrastructure functionality default settings reduce PC energy consumption 70% Vista's features default sleep mode automatically sends PC sleep inactive 60 minutes Vista able return sleep mode seconds resulting real disruption users Microsoft continues develop innovative solutions intelligent collaborative communication recently launched Live Meeting SharePoint Office Groove 2007 enable virtual meetings reducing need physical transfer documents business travel initiatives contribute reduction GHG emissions include Puget Sound Redmond campus advanced irrigation campus saves 11 million gallons water annually Paper required contain 35 percent recycled content copiers default double sided use average 24 tons material day recycled facilities including glass plastic aluminum cardboard paper organic waste wood pallets copper wire cabling minimum 50 percent construction waste associated development new buildings Redmond campus recycled 2006 Microsoft sent 84 000 pieces hardware technology recycler zero landfill policy Approximately 3 percent Microsoft's computers refurbished reused Microsoft recycling efforts saved 7 630 tonnes CO2e Microsoft participates industry initiatives Microsoft Authorized Refurbisher (MAR) Digital Pipeline (DP) programs address computers end life reducing landfill pollution MAR DP programs provide low cost licenses Microsoft software extend lives used PC computers destined landfill launch MAR program United States supported 700 refurbishers supplied 120 000 licenses Microsoft operates MAR program 48 countries Europe Middle East Africa MAR licenses supplied educational charitable organizations CY2006 collected data leased sites separately metered Microsoft’ s electricity usage Microsoft does operational control sites including Scope 3 emissions purchase 635 490 MWh electricity leased sites resulted emissions 45 630 tonnes CO2e Refrigerants ozone depleting substances hydrochlorofluorocarbons (HCFCs) phased use Montreal Protocol Substances Deplete Ozone Layer included Scope 1 emissions GHG Protocol refrigerants covered Montreal Protocol tracked Kyoto Protocol included Scope 1 emissions reported CY2006 emissions related refrigerants covered Kyoto Protocol GHG Protocol 2860 tonnes CO2e

 
<>Your supply chain
<>We directly calculated greenhouse gas emissions associated supply chain activities global company Microsoft requires vendors comply applicable environmental laws follow good environmental practices reflect spirit laws

 
<>External distribution/logisitics
<>We calculated greenhouse gas emissions associated external distribution logistics

 
<>Employee business travel
<>222710 CO2e metric tonnes

 
<>Other

 
<>Please provide details sources emissions entered figure "Other" box

 
<>Please provide information measurement scope 3 emissions

 
<>Would like provide additional information relating question provided
 Yes 
GHG emissions reported CY2006

 
Section B – 3 Additional Greenhouse Gas Emissions Accounting
Question 3(a) – Scope 1 Scope 2 GHG Protocol emissions country
Using methodology set 2(a) state emissions country NB practical list emissions country country basis list countries significant emissions context business combine remainder “ rest world” information format (e g Excel) attach
<>
Country Scope 1
Emissions (Tonnes CO2e)
Scope 2
Emissions (Tonnes CO2e)

 
<>Would like provide additional information relating question provided
 Yes 
Section B optional sector elected answer question

 
Question 3(b) – Facilities covered EU Emissions Trading Scheme
provide details total emissions metric tonnes CO2e facilities covered EU ETS details allowances issued applicable National Allocation Plans
<>Emissions total facilities covered EU ETS figure metric tonnes CO2e

 
<>Total number allowances issued National Allocation Plans applicable installations covered EU ETS

 
<>Would like provide additional information relating question provided
 Yes 
owners buildings Microsoft directly manage control energy use implement energy efficiency initiatives effectively past years reported electricity usage resulting carbon emissions owned properties year including emissions resulting electricity use leased buildings separately metered including equivalent carbon dioxide emissions resulting HCFC refrigerants (which non Kyoto greenhouse gases)

 
Question 3(c) – EU ETS impact
<>What impact profitability EU Emissions Trading Scheme
Section B optional sector elected answer question

 
<>Would like provide additional information relating question provided
 No 

 
Section B – 4 Greenhouse Gas Emissions Management
Question 4(a)(i) Reduction programmes
emission reduction programs does company place include reduction programs related operations energy consumption supply chain product use/disposal
<>Does company emissions reduction program
 No 
Microsoft set specific emissions reduction targets component Environmental Management major emissions related headcount total real estate portfolio space employee travel related current growth company process quantifying major emissions determining best methods reduction continue work improving energy efficiency offices products commute program *Built Environment new buildings use 10 15% energy older buildings buildings built meet exceed requirements Silver rating defined LEED scoring 2006 Microsoft broke ground newest largest data center date Quincy Washington fully powered hydroelectricity Columbia River Basin renewable clean air resource building design prioritizes energy efficiency water conservation use green building technologies LEED rating Microsoft data center locations world expected company builds set generation data centers power company’ s Live services efforts Given costs expected data centers Microsoft focused maximizing efficiencies monitoring managing current power consumption design future data centers closely Microsoft’ s new campus Hyderabad India double glazed windows sunshades reduce reliance air conditioning lights turn automatically offices unoccupied 10 minutes reservoir recycles 36 000 cubic meters rainwater irrigate 48 acre campus run energy efficient water cooled AC units *Packaging Microsoft's sustainable packaging initiative incorporates Design Environment principles Microsoft's internally developed Environmental Principles participate Sustainable Packaging Coalition use software developed Environmental Packaging International track progress performance software allows designers evaluate designs based total energy use greenhouse gas emissions raw material inputs hazardous substances recyclability improvements date include elimination PVC continue phase use PVC packaging actively encourage retail channel partners restrict PVC packaging stores recycled content applications using PET 25% recycled content recyclability replaced polystyrene end caps used original Xbox paper based packaging Xbox 360 reduction packaging (Xbox accessories keyboards mice software) continue reduce standardize carton materials used user manuals reduced size available online packaging designers collaborate hardware designers right balance structure product compared protection packaging work retail distributors design redesign packaging appropriate needs biodegradable materials working various biodegradable material manufacturers processors (corn based plant sugar based) applications shrink wrapping point purchase materials clam shells order encourage innovation use materials shared learning packaging industry *Commute Alternatives 2006 Microsoft recognized Best Workplaces Commuters coalition led U S Environmental Protection Agency local non profits transit organizations #2 ranking 20 list Fortune 500 Companies Commute Program serves 40 000 employees Puget Sound area 1 500 Silicon Valley area offering services incentives encourage employees use public transit carpooling vanpooling bicycling walking campus wide shuttle reduces number vehicle trips taken attend meetings buildings encourages employees alternative transport work 50 percent vehicles shuttle fleet hybrid vehicles Participation Commute Program continues increase 30% employees (approximately 11 000 people) choosing alternatives driving Microsoft's Puget Sound commuters chose following alternatives 2006 Carpooling 13% Vanpool 2% Transit ridership 6% Bike Walk 4% Telework 2%

 
<>What baseline year emissions reduction program (YYYY format 1990)

 
<>If use baseline year reduction programme provide details reference point programme
Section B optional sector elected answer question

 
<>Would like provide additional information relating question provided
 No 

 
Question 4(a)(ii) Reduction programmes
emissions reduction targets period targets extend
<>Emissions reductions target (%)

 
<>Time frame reduction target

 
<>Further information
Section B optional sector elected answer question

 
<>Would like provide additional information relating question provided
 No 

 
Question 4(a)(iii) Reduction programmes
<>What investment been/will required achieve targets (In $)

 
<>Over time period (In years)

 
<>More
Section B optional sector elected answer question

 
<>Would like provide additional information relating question provided
 No 

 
Question 4(a)(iv) Reduction programmes
<>What emissions reductions associated costs savings achieved date result program
Section B optional sector elected answer question

 
<>Would like provide additional information relating question provided
 No 

 
Question 4(a)(v) Reduction programmes
<>What renewable energy energy efficiency activities undertaking manage emissions
2006 installed new solar electric Silicon Valley Campus (SVC) Northern California largest kind Silicon Valley date composed 2 288 tiles generates 480kW peak capacity energy meet approximately 15 percent SVC's total energy needs reduce CO2 emissions 4 000 tons 30 years equivalent planting 1 000 trees removing 800 cars driving 10 million miles California’ s roads Environmental measures considered campus including reduced electricity consumption 72 000 kW annually reducing heating ventilation air conditioning lighting workdays replacing high energy lighting energy efficient lighting maintaining heating cooling systems operate maximum efficiency mentioned Section B Question 4a Microsoft' newest largest data center date Quincy Washington served electricity provider based 100% hydropower Columbia River Basin Microsoft (UK) Limited consists site locations 100% electricity supplied Renewable Resources (Green) generation Climate Levy tax exempt main office Reading (Thames Valley Park) benefits energy saving controls PIR sensors individual zoned lighting lights individually dimmed lights required used newest building Reading (to occupied March 07) built highest environmental standards expected awarded Building Research Establishment Environment Assessment Method (BREEAM) standard Excellent office location 30 000 sq ft audited Carbon Trust determine CO2 foot print provide recommendation reduce emissions environmental impact Microsoft invests extensive energy savings measures new buildings using 10 15% energy comparable buildings use advanced HVAC lighting technologies follow LEED Commercial Interiors guidelines leased office spaces control entire building’ s operations

 
<>Would like provide additional information relating question provided
 No 

 
Question 4(b) Emissions trading
company’ s strategy trading EU Emissions Trading Scheme CDM/JI projects trading systems (e g CCX RGGI etc) relevant Explain involvement following
<>EU ETS
Section B optional sector elected answer question

 
<>CDM/JI
Section B optional sector elected answer question

 
<>CCX
Section B optional sector elected answer question

 
<>RGGI
Section B optional sector elected answer question

 
<>Others
Section B optional sector elected answer question

 
<>More
Microsoft continuing track development trading schemes particularly light latest GHG inventory assessment reduce major emissions emissions trading schemes directly relevant Microsoft future expect placed respond

 
<>Would like provide additional information relating question provided
 No 

 
Question 4(c) Emissions intensity
state measurement believe best describes company’ s emissions intensity performance historical current emissions intensity measurements targets
<>Best measurement emissions intensity company
Section B optional sector elected answer question

 
<>Historical intensity details
Section B optional sector elected answer question

 
<>Current intensity details
Section B optional sector elected answer question

 
<>Target details
Section B optional sector elected answer question

 
<>Would like provide additional information relating question provided
 No 

 
Question 4(d) Energy costs
total costs energy consumption e g fossil fuels electric power percentage total operating costs does represent
<>Total costs energy consumption (in US$)

 
<>Percentage total operating costs (%)

 
<>More Details
Microsoft affected fuel electricity costs natural resources increase direct energy costs office operations Microsoft manufacturing operations energy costs tied leased properties directly quantify energy costs percentage total operating costs

 
<>Would like provide additional information relating question provided
 No 

 
Question 4(e) Planning
estimate company’ s future emissions provide details estimates summarize methodology factor cost future emissions capital expenditure planning considerations impact investment decisions
<>Do estimate company’ s future emissions

 
<>Please provide details estimates summarize methodology provide details estimate company's future emissions
Section B optional sector elected answer question

 
<>How factor cost future emissions capital expenditure planning
Section B optional sector elected answer question

 
<>Have considerations impact investment decisions

 
<>Please provide details
Microsoft estimated future emissions past currently developing strategy understand future emissions target reductions

 
<>Would like provide additional information relating question provided
 No 

 
Section B – 5 Climate Change Governance - Responsibility
Question 5(a)(i) Responsibility
<>Which Board Committee executive body overall responsibility climate change
February 2006 Corporate Staff Council adopted set Environmental Principles guide company’ s policies related sustainability energy use Todd Holmdahl Corporate Vice President Entertainment Devices executive responsibility review approval implementing policies procedures dictated Environmental Principles Microsoft employee responsible helping Company fulfill principles

 
<>Would like provide additional information relating question provided
 No 

 
Question 5(a)(ii) Responsibility
<>What mechanism Board executive body reviews company’ s progress status regarding climate change
Included Principles mandate demonstrate responsibility action stakeholders engage stakeholders objectives targets periodically communicate progress Board shareholders customers members public 2006 Global Citizenship Report describes environmental stewardship activities Responsible Business Practices section report downloaded http //www microsoft com/about/corporatecitizenship/citizenship/default mspx

 
<>Would like provide additional information relating question provided
 No 

 
Question 5(b) Individual performance
<>Do provide incentive mechanisms managers reference activities relating climate change strategy including attainment GHG targets

 
<>If provide details
Employees incentivized respect environmental efforts incorporation related goals work commitments results integration environmental business functions provides direct link employees’ compensation package strategy

 
<>Would like provide additional information relating question provided
 No 

 
General Information
<>Please add general information attachments related specific question like include response

 
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