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Respondent CDP 2008: Microsoft Corporation

General Information
<>It requirement CDP questionnaire introduction answer like text box attach document
Environmental stewardship central Microsoft’ s business continue play increasingly important role future stakeholders internal external related activities described response Additional information Microsoft partners use innovative technologies responsible business practices address environmental challenges worldwide available http //www microsoft com/environment/

 
<>Where available provide following identification numbers primary listings/ordinary shares information company Company Turnover (also known sales) millions US$

 
<>ISIN number

 
<>CUSIP number

 
<>SEDOL number

 
1 - Risks and Opportunities
Question 1(a)(i) Regulatory Risks
<>How company exposed regulatory risks related climate change
We consider our company to be exposed to regulatory risks because... 
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 Core Business Microsoft focuses efforts sustainability design software hardware comply worldwide environmental regulations heavy metals lead cadmium used packaging plastics work proactively improve energy efficiency products integrate Design Environment best practices development new products Buildings Microsoft invests green building best practices design new buildings renovation existing real estate portfolio best practices include United States Green Building Council’ s (USBGC) Leadership Energy Environmental Design (LEED) guidelines closely following global regulatory developments Microsoft positioned meet and/or exceed regulatory requirements relating climate change

 
<>Would like provide additional information relating question provided
No 

 
Question 1(a)(ii) Physical Risks
<>How company exposed physical risks climate change
We consider our company to be exposed to physical risks because... 
Microsoft primarily office based company headquarters large presence Puget Sound region state Washington region Pacific Northwest proactive topic climate change state local governments academia environmental organizations efforts organizations contribute Microsoft’ s measures reduce contributions climate change reduce exposure physical risks

 
<>Would like provide additional information relating question provided
No 

 
Question 1(a)(iii) General Risks
<>How company exposed general risks result climate change
We consider our company to be exposed to general risks because... 
Microsoft exposed general risks related climate change way companies individuals are— rising energy costs changes weather disrupting company operations new regulatory requirements Microsoft continues large global corporation industry grows expands meet consumer demands incorporate new technologies Microsoft believes intersection business environment continue critical issue facilitating ability create business strategies related climate change

 
<>Would like provide additional information relating question provided
No 

 
Question 1(a)(iv) Risk Management
<>Has company taken planned action manage general regulatory risks and/oradapt physical risks identified
We have taken or planned action. 
Microsoft invests energy efficient technologies reduce technology’ s contributions climate change environmental efforts taking place Microsoft described sections response

 
<>Would like provide additional information relating question provided
No 

 
Question 1(a)(v) Financial Business implications
<>How assess current and/or future financial effects therisks identified risks affect business
We assess current and/or future financial effects by... 
Microsoft actively monitoring energy use incorporating energy efficient strategies tracking regulatory voluntary emissions trading programs

 
<>Would like provide additional information relating question provided
No 

 
Question 1(b)(i) Regulatory Opportunities
<>How current anticipated regulatory requirements climate change offeropportunities company
We do not consider that current or anticipated regulatory requirements offer opportunities because 
Microsoft’ s core business development software services time regulatory requirements climate change presenting direct opportunities Microsoft

 
<>Would like provide additional information relating question provided
No 

 
Question 1(b)(ii) Physical Opportunities
<>How current anticipated physical changes resulting climate change presentopportunities company
We do not consider that current or anticipated physical changes offer opportunities because... 
primarily office based company physical changes resulting climate change present direct opportunities Microsoft

 
<>Would like provide additional information relating question provided
No 

 
Question 1(b)(iii) General Opportunities
<>How does climate change present general opportunities company
We consider that climate change offers opportunities because... 
Microsoft software electronics hardware company climate change does affect products directly compared sectors energy transportation construction companies examples clear role technology play facilitating sustainability reporting aiding relief Microsoft number tools available assist companies individuals track reduce energy use including o Microsoft Dynamics line integrated adaptable business management solutions enable companies make business decisions confidence solutions automate streamline financial customer relationship supply chain processes Microsoft Dynamics currently developing Environmental Sustainability Dashboard dashboard enable small mid size companies begin process understanding terms effect environment order determine opportunities improvement dashboard display Core Environmental Performance Indicators (CEPI) identified Global Reporting Initiative Direct Energy Consumption Indirect Energy Consumption Total Direct Indirect Greenhouse Gas Emissions Relevant Greenhouse Gas Emissions Additional information Environmental Sustainability Dashboard available http //www microsoft com/dynamics/environment mspx o Microsoft Germany collaborated German nuclear power provider Yello Strom develop Vista widget allow customers view energy consumption home customer view energy refrigerator stove stereo heater actually consume immediately detects electricity hogs saves energy money Customers provided transparency consumption cost control energy consumption personal online account Yello homepage Customers check PCs time consumption energy costs changed months days quarters hour Yello Sparzä hler online turns customers energy managers Software based innovations future making homes intelligent allowing individuals use energy need o Verdiem’ s Partnership Microsoft HP allows new HP PCs shipped Verdiem software client installed Verdiem’ s power management software helps customers measure manage reduce energy consumption PC networks providing remote network level control PC power settings Aid relief benefit business technology solutions Microsoft’ s employees tools provide following partnerships projects Microsoft provided technology support o NetHope Interagency Working Group Emergency Capacity Building (ECB)NetHope membership organization includes chief information officers chief technology officers 19 global NGOs engaged international development ECB comprises seven world's active relief agencies including Catholic Relief Services Mercy Corps Save Children focus NetHope ECB improve use information communications technology facilitate communication collaboration increase capacity overall efficiency disaster response 2006 Microsoft donated US$41 million software cash organizations ongoing effort help improve humanitarian relief efforts worldwide o American Red CrossIn 2005 Hurricane Katrina hit Gulf Coast United States Microsoft worked American Red Cross create people finder solution Katrinasafe org— called Safe Web based solution reunites families communities affected disasters date registered 300 000 Katrina evacuees used help provide relief victims 2005 Pakistan India earthquake o Medical CareA team Microsoft employees worked group NGOs help doctors deliver medical care remote areas Afghanistan power water systems mobile phone connections team used Office Groove technologies pilot program help NGOs reduce coordination time doctors weeks days

 
<>Would like provide additional information relating question provided
No 

 
Question 1(b)(iv) Maximizing Opportunities
<>Do invest plans invest products services designedto minimize adapt effects climate change
Climate change has led to investment or planned investment in order to maximise climate change opportunities. 
Microsoft invest new technology reduce environmental impact operations ensure buildings energy efficient Microsoft UK purchases 100 percent renewable electricity main office Thames Valley Park plans extend practice offices United Kingdom Microsoft campus Hyderabad India reservoir recycles 36 000 cubic meters rainwater irrigate 48 acre campus run energy efficient water cooled air conditioning units Microsoft data center Quincy Washington uses renewable hydropower primary energy source designed carbon neutral Mountain View California rooftop solar panels generate power supply approximately 15 percent peak energy needed campus Microsoft fleet 50 hybrid vehicles main campus used shuttle service saves approximately 20 000 gallons gasoline annually addition Redmond based cafeteria kitchens direct 1 000 gallons used fryer oil Seattle area bio diesel refinery month

 
<>Would like provide additional information relating question provided
No 

 
Question 1(b)(v) Financial Business Implications
<>How assess current and/or future financial effects theopportunities identified opportunities affect business
We assess current and/or future financial effects by... 
opportunities presented previous question’ s response assessed typical financial business evaluations new products facility operations

 
<>Would like provide additional information relating question provided
No 

 
2 - Greenhouse Gas (GHG) Emissions Accounting
Question 2(a)(i) Reporting Boundary
Calculation tools assist companies calculating GHG emissions particular activities combustion fuels production processes http //www ghgprotocol org/calculation tools/all tools Companies new emissions reporting strongly recommended use tools assist calculations used calculation tool list question methodologies
<>Please indicate category best describes company entities groupfor response prepared
Other 
response prepared Microsoft Corporation including owned large leased sites sites energy consumption information available leased sites billing structure contract does distinguish energy usage and/or gives Microsoft operational control leased space

 
<>Would like provide additional information relating question provided
No 

 
Question 2(a)(ii) Reporting Year
<>Please explicitly state dates accounting year period GHG emissionsare reported
Start date 01 January 2007End date 31 December 2007

 
<>Would like provide additional information relating question provided
No 

 
Question 2(a)(iii) Methodology
<>Please specify methodology used company calculate GHG emissions select methodology used using radio buttons used GHG Protocol ISO 14064 1 references calculation tools used explanation calculation methods devised explain data sources Global Warming Potentials emission factors used calculations reference supplied calculation tool contact provider calculation tool information used methodology devised explain methodology including methods calculation data sources Global Warming Potentials emission factors
GHG Protocol 
Greenhouse Gas (GHG) Protocol calculation tools office based organizations used calculate GHG emissions listed report tools GHG Protocol’ s Corporate Accounting Reporting Standards Emission factors facilities United States obtained United States Environmental Protection Agency’ s Emissions Generation Integrated Resource Database eGRID2006 version 2 1

 
<>Would like provide additional information relating question provided
No 

 
Question 2(b)(i) Scope 1 Scope 2 GHG Protocol
<>Are able provide breakdown direct indirect emissions Scopes 1 2 GHG Protocol analyse electricity consumption

 
<>Would like provide additional information relating question provided
No 

 
Question 2(b)(i)(y) Scope 1 Scope 2 GHG Protocol Year 1 answers
<>Please enter dates reporting period specified (answer question 2(a)(i)) answer questions period selecting “ Add Additional Year Figures” button end webpage repeat process previous reporting period reporting period possible data going reporting period ending 2004 enter historical data reported information response previous CDP questionnaires

 
<>Please enter accounting year used report GHG emissions details
Start date 01 January 2007End date 31 December 2007

 
<>Scope 1 Direct GHG Emissions provide Total global Scope 1 activity Metric Tonnes CO2 e emitted
<>15100 CO2e metric tonnes < text="">

 
<>b Total Scope 1 activity Metric Tonnes CO2 e emitted Annex Bcountries
<>13730 CO2e metric tonnes < text="">

 
<>By country Scope 1 activity metric tonnes CO2 e individual country Using methodology 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
(metric tonnes CO2-e)

 
<>Scope 2 Indirect GHG emissions provide c Total global Scope 2 activity metric tonnes CO2 e emitted
<>152480 CO2e metric tonnes < text="">

 
<>d Total Scope 2 activity metric tonnes CO2 e emitted Annex Bcountries
<>124690 CO2e metric tonnes < text="">

 
<>By country Scope 2 activity metric tonnes CO2 e individual country
Country Scope 2 Emissions
(metric tonnes CO2-e)

 
<>Electricity consumptione Total global MWh purchased electricity
694060 MWh

 
<>f Total MWh purchased electricity Annex B countries
664450 MWh

 
<>By country – MWh purchased electricity individual country
Country

 
<>g Total global MWh purchased electricity renewable sources

 
<>h Total MWh purchased electricity renewable sources Annex Bcountries

 
<>By country – MWh purchased electricity renewable sources individual country
Country

 
<>Would like provide additional information relating question provided
Yes 
Electricity generated renewable energy tracked separately utility providers renewables portfolios Puget Sound Energy’ s power mix Seattle area sites includes 45% hydro power 4% renewables Pacific Gas Electric’ s power Silicon Valley sites includes approximately 24% nuclear power 22% large hydroelectric 12% renewables addition Quincy data center site served utility 100% hydro power Additional information renewable energy purchases building practices described Section 3

 
Question 2(b)(ii) Scopes 1 2 GHG Protocol
<>If unable Scope 1 Scope 2 GHG emissions and/or electricity consumption report GHG emissions able identify description emissions answered 2(b)(i) question 2(c)(i)
Scope 1 Scope 2 GHG emissions listed previous question Scope 1 GHG emissions include site combustion mobile combustion main Kyoto refrigerant use Scope 2 GHG emissions include electricity use Scope 1 Scope 2 GHG emissions reflect data owned large leased locations

 
<>Would like provide additional information relating question provided
No 

 
Question 2(c)(i) Emissions – Scope 3 GHG Protocol
<>How identify and/or measure Scope 3 emissions
year’ s response CY2007 included similar sources Scope 3 emissions CY2006 include non Kyoto refrigerant gases used owned large leased sites site combustion electricity purchased refrigerants sites air travel recycled waste

 
<>Please provide possible Details significant Scope 3 sources company
Microsoft global company corporate headquarters United States sites world including Europe Asia addition rapidly growing significant Scope 3 sources Microsoft air travel air travel miles refined CY2007 reflect connections indirect flights

 
<>b Details metric tonnes CO2 e GHG emissions following categories Employee business travel
<>255370 CO2e metric tonnes < text="">

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

 
<>iii Use/disposal company’ s products services
<>Microsoft building collaboration software tools technology support environment o Microsoft leader development collaboration software Windows Live Meeting network Internet services Microsoft Office SharePoint portal server Microsoft Office Groove enables virtual meetings effective teamwork products designed enhance business productivity reduce need business travel physical transfer documents helps lower greenhouse gas emissions environmental impacts businesses o Windows Mobile software leading operating handheld devices cellular telephones enable remote access e mail Internet require energy standard portable desktop o Microsoft innovating decrease energy usage operating systems power control panel enables users control idle time monitor hard drive shut goes low powered standby hibernate mode According EPA use power management features decrease average energy consumption 50 percent Recycling Conservation advanced irrigation corporate headquarters campus Redmond Washington saves 11 million gallons water annually Paper required contain 35 percent recycled content copiers default double sided use average 141 tons material recycled month including glass plastic aluminum cardboard paper organic waste wood pallets copper wire 50 percent construction waste new buildings recycled recycling efforts saved 6380 tonnes CO2e Reusing Recycling TechnologyMicrosoft recycles computers monitors servers surplus electronics keeps toxic substances landfills helps prevent groundwater contamination recycling efforts saved 3710 tonnes CO2e partnership established refurbishment centers Microsoft working provide high quality refurbished computers used benefit educational needs underserved communities extend useful lives computers Microsoft developed following programs refurbished computers Microsoft Authorized Refurbisher Microsoft Authorized Refurbisher (MAR) program provides Microsoft software refurbishers world helps make software computers affordable accessible communities underserved technology Digital Pipeline Currently pilot program Europe Africa Digital Pipeline helps organizations donate used computers refurbished work communities world program reduces environmental impact discarded equipment ensures donated computers stay secure date genuine Microsoft software Emissions sites included Scope 1 2 136 680 tonnes CO2e associated electricity use 4350 tonnes CO2e associated site combustion Refrigerants recognized ozone depleting substances hydrochlorofluorocarbons (HCFCs) phased use Microsoft accordance Montreal Protocol Substances Deplete Ozone Layer substances deplete ozone layer included Scope 1 emissions GHG Protocol phased longer used new construction projects Refrigerants covered Montreal Protocol tracked Kyoto Protocol included Scope 1 emissions Emissions related refrigerants covered Kyoto Protocol GHG Protocol 3710 tonnes CO2e owned large leased sites Emissions related refrigerants (Kyoto non Kyoto) sites included Scope 1 2 1360 tonnes CO2e

 
<>iv Company supply chain
<>Microsoft does directly calculate greenhouse gas emissions associated supply chain activities global company Microsoft requires vendors suppliers abide applicable environmental laws follow environmental practices reflect letter spirit laws vendor contracts restrict use certain toxic harmful materials require vendors use recycled recyclable content Microsoft products packaging member Electronic Industry Citizenship Coalition Microsoft supports Electronic Industry Code Conduct (EICC) covers best practices performance compliance auditing reporting guidelines labor health safety environmental management ethics

 
<>c Details methodology use quantify estimate Scope 3 emissions
GHG Protocol tools used quantify emissions related site combustion electricity refrigerants air travel Emissions saved recycled waste calculated using United States Environmental Protection Agency’ s WAste Reduction Model (WARM) tool version 8 information CompuMentor’ s 2004 report ‘ Islands Wastestream’ European Recycling Platform

 
<>Would like provide additional information relating question provided
No 

 
Question 2(d) External Verification
<>(i) information reported response Questions 2(b) (c) beenexternally verified audited plan information verified oraudited
No (Please go to question 2 (e)) 

 
<>(ii) answer question 2d(i) Yes provide attach copy audit verification statement state plans verification

 
<>(iii) specify standard protocol information hasbeen audited verified

 
<>Would like provide additional information relating question provided
Yes 
input data information reported Questions 2b c externally verified audited external party environmental consulting company completed emissions calculations related data

 
Question 2(e) Data Accuracy
<>Does company place assess accuracy GHG emissions inventory calculation methods data processes systems relating GHG measurement provide details explain data accuracy managed
Yes, we do have a system. 
Microsoft contracts party consulting company calculate GHG emissions based data provided Microsoft facilities’ management travel departments

 
<>Would like provide additional information relating question provided
No 

 
Question 2(f) Emissions History
<>Do emissions reported accounting year vary significantly compared previous years explain reasons variations
Yes, they do vary significantly. 
year’ s response includes emissions similar owned leased facilities year’ s response new sites included Emissions increased energy usage mobile combustion business travel continued organic growth acquisitions expansion data centers rapidly growing international business addition year’ s business travel calculations include refined accounting additional air miles certain indirect connecting flights significant decrease refrigerants Hyderabad campus result maintenance previous year’ s data reflected year refrigerants systems initially filled year’ s data reflects general use topping needed

 
<>Would like provide additional information relating question provided
No 

 
Question 2(g) Emissions Trading
<>i) Does company facilities covered EU Emissions Trading Scheme
No, we do not. (Please go to question 2(g)(ii) below)  

 
<>If a) provide details annual allowances awarded company Phase years 1 January 2005 31 December 2007 details allowances allocated Phase II commencing 1 January 2008 cases enter numbers punctuation example enter 2000 instead 2 000 enter allowance Metric Tonnes CO2 1 January 2005 31 December 2005

 
<>1 January 2006 31 December 2006

 
<>1 January 2007 31 December 2007

 
<>b) provide details actual annual emissions facilities covered EU ETS effect 1 January 2005 enter emissions Metric Tonnes CO2 1 January 2005 31 December 2005

 
<>1 January 2006 31 December 2006

 
<>1 January 2007 31 December 2007

 
<>Phase II annual allowances1 January 2008 – 31 December 2008

 
<>1 January 2009 – 31 December 2009

 
<>1 January 2010 – 31 December 2010

 
<>1 January 2011 – 31 December 2011

 
<>1 January 2012 – 31 December 2012

 
<>c) impact company’ s profitability EU ETS

 
<>ii) company's strategy trading participating regional and/or international trading schemes (eg EU ETS RGGI CCX) Kyoto mechanisms CDM JI projects Explain involvement following EU ETS

 
<>CDM/JI

 
<>CCX

 
<>RGGI

 
<>Others

 
<>Would like provide additional information relating question provided
Yes 
Microsoft does facilities covered mandatory GHG emission limits EU Emissions Trading Scheme does Microsoft participate voluntary carbon trading time Microsoft continues track development trading schemes specific applicability Western Climate Initiative launched February 2007 includes states Washington Arizona California New Mexico Oregon Utah Montana British Columbia Manitoba provinces states Mexican states Canadian provinces observers Microsoft monitoring Western Climate Initiative potential National State legislative activity Microsoft chosen invest improving operational efficiencies reduce energy use present appears potential mandated carbon cap trade programs direct carbon taxes likely imposed serving electric natural gas utilities related costs passed ratepayers

 
Question 2(h) Energy Costs
<>i) identify total costs $ energy consumption fossil fuels electric power want enter number 1 ensure use decimal point (e g 0 3) comma (e g 0 3)

 
<>ii) percentage total operating costs does represent

 
<>iii) percentage energy costs incurred energy renewable sources

 
<>More details
Microsoft affected fuel electricity costs natural energy resources increase direct energy costs office operations data center usage Microsoft manufacturing operations

 
<>Would like provide additional information relating question provided
No 

 
3 - Performance
Question 3(a) Reduction Plans
<>i) Does company GHG emissions reduction plan place provide details information requested currently plan place explain
No, we do not currently have a plan in place for the following reason(s): 
Microsoft currently does formal GHG emissions reductions plan place Microsoft committed environmental sustainability continuously works explore implement new ways preserve improve environment Environmental efforts Microsoft focused key areas • Applying Microsoft technology expertise help solve environmental challenges• Reducing company's environmental footprint • Partnering corporations NGO’ s contribute resources expertise work help solve environmental issuesApplying Microsoft Expertise Environmental Challenges• Creating technology solutions Microsoft believes technology significantly contribute promoting environmental sustainability company works customers partners governmental organizations nongovernmental organizations build solutions enable consumers businesses governments reduce environmental footprints o Microsoft operating (Windows Vista® ) company's energy efficient operating date features significant changes power management infrastructure functionality default settings reduce energy consumption information available http //www microsoft com/presspass/features/2007/mar07/03 21vistapowermgmt mspx o Microsoft Clinton Foundation's Climate Initiative developing Web solution enables cities better understand monitor environmental footprint make informed choices improve energy efficiency reduce carbon emissions Web based software tools provided cities free charge available summer 2008 o 2007 Microsoft Google Intel World Wildlife Fund industry leaders announced Climate Savers Computing Initiative commitment purchase produce computing products meet specified power efficiency targets initiative educate consumers personnel managing computer's power usage reduce electrical footprint computers o Microsoft leader development collaboration solutions Microsoft® Office Live Meeting SharePoint® Microsoft Office Groove® 2007 technologies enable virtual meetings reducing need physical transfer documents business travel o Using familiar interface Microsoft Office Microsoft Dynamics™ developing environmental dashboard product enable companies manage greenhouse gas data environmental sustainability related data dashboard work Microsoft Dynamics business management solutions Read http //www microsoft com/dynamics/environment mspx • Addressing e waste Microsoft committed enhancing reusability personal computers devices kept use waste stream long possible— recycled properly reach end useful life Microsoft Authorized Refurbisher (MAR) programs supporting programs Digital Pipeline (DP) Microsoft helps extend life older retired computers providing low cost licenses Microsoft software o Information contact MAR refurbisher www microsoft com/communitymar www microsoft com/oem/mar o Tips donating hardware http //www microsoft com/Education/TenTips mspx o MAR program United States supported 900 refurbishers supplies 200 000 licenses year addition Microsoft operates Community MAR program world help educational charitable organizations access technology o life consumer electronics components extended Microsoft supports mandatory collection recycling consumer electronics funded individual producers recognizes foster creation sustainable products waste reduction Microsoft belongs Electronic Recycling Programs available feasible products company participates voluntary recycling events world • Vendor requirements global company manufacturing world Microsoft requires vendors abide applicable environmental laws follow environmental practices reflect spirit laws Reducing Company's Environmental FootprintMicrosoft focused reducing impact business operations environment leader areas particularly headquarters Redmond Wash Puget Sound region Microsoft recognized Environmental Protection Agency (EPA) employee commuting programs provide environmentally sound options 50 000 employees onsite consultants work region • Responsible building design global operations Microsoft invests new technology ensure buildings efficient advantage alternative energy opportunities participation Green Building Council LEED (Leadership Energy Environmental Design) program Microsoft owned newer buildings United States use 15 percent energy older buildings new construction built achieve Silver LEED standards higher o Microsoft Data Center Services team closely monitors manages current power consumption design future data centers maximize efficiencies company's data center Quincy Wash example Microsoft building future Using clean renewable hydropower Columbia River Basin primary energy source Quincy data center designed minimal nonexistent carbon footprint Microsoft broken ground San Antonio data center scheduled completion July 2008 data center leverage city's environmentally responsible recycled water program use nuclear wind power primary energy sources Microsoft working closely energy companies research new power generation transmission distribution technologies drive greater efficiencies data centers o April 2006 Microsoft dedicated 2 000 solar panels cover 30 000 square feet rooftop area campus Mountain View Calif generates 480 kilowatts power peak capacity energy supply 15 percent campus's peak energy needs o Microsoft UK purchases 100 percent renewable electricity main office Thames Valley Park plans extend renewable resource offices United Kingdom development complete o new Microsoft campus Hyderabad India double glazed windows sunshades reduce reliance air conditioning (AC) 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 • Recycling conservation Microsoft extensive recycling conservation program corporate headquarters Redmond Wash reduces waste conserves resources Examples Redmond campus include following o Water advanced irrigation saves 11 million gallons annually o Paper Paper required contain 35 percent recycled content Copiers default double sided copies paper used o Waste average 141 tons material recycled month including glass plastic aluminum cardboard paper organic waste wood pallets copper wire Microsoft recycles 50 percent construction waste addition Redmond based cafeteria kitchens direct 1 000 gallons used fryer oil Seattle area bio diesel refinery month • Employee transit campuses Microsoft offers public transportation passes employees onsite consultants Microsoft assists ride sharing reductions bicycle maintenance costs Examples include following o Redmond area Microsoft increased commuter group 32 percent employees addition offering public transportation ride sharing benefits company offers lockers showers bikers walkers flexible work schedules guaranteed ride home program o Connector free Microsoft bus service available time employees transports employees residential neighborhoods Redmond campus Launched September 2007 Connector provided 130 000 rides Microsoft employees April 2008 4 300 unique employees used Connector number increases 3% month 2 500 employees driving using Connector decision ride bus means reduced traffic parking congestion 1 3 million pounds carbon emissions saved o Microsoft fleet 50 hybrid vehicles used shuttle service Redmond campus • Manufacturing environmentally compliant products packagingo Elimination PVC packaging 2005 Microsoft removed polyvinyl chloride (PVC) product packaging reduced use plastic clamshells 70 percent Based historical product shipments year period measures reduce PVC packaging 1 6 million pounds o Commitment sustainable consumer electronics Microsoft software hardware products designed comply exceed worldwide environmental regulations Microsoft does use heavy metals lead cadmium packaging plastics products restricts use toxic substances hardware products Microsoft committed eliminating PVC brominated retardants hardware products 2010 o Improving product packaging Microsoft researching ways improve product packaging using environmentally friendly ingredients decreasing disposable packaging participation Sustainable Packaging Coalition cross industry group 100 global companies Microsoft created packaging recycled plastic beverage containers Microsoft Streets Trips GPS case

 
<>ii) baseline year emissions reduction plan

 
<>If want information rolling target
Microsoft currently does formal GHG emissions reductions plan place

 
<>iii) emissions reduction targets period targets extend
Microsoft currently does formal GHG emissions reductions plan place

 
<>iv) activities undertaking reduce emissions renewable energy energy efficiency process modifications offsets sequestration targets set timescales extend
years Microsoft participated Leadership Energy Environmental Design (LEED) program renovating older buildings constructing new buildings enhance energy efficiency increase use recycled products nontoxic materials April 2007 Microsoft opened largest data center date Quincy Washington facility powered hydroelectricity renewable clean air resource construction prioritizes energy efficiency water conservation use green building technologies companies Microsoft data centers world data centers energy intensive Microsoft released set best practices administrators running data centers focusing energy saving strategies company implementing operations covering issues pick environmentally responsible site data center manage heat byproduct manage power consumption

 
<>v) investment required achieve targets time period
Microsoft currently does formal GHG emissions reductions plan place

 
<>vi) emissions reductions associated costs savings achieved date result plan
Microsoft currently does formal GHG emissions reductions plan place response Question 3(a)i emissions reductions achievements date

 
<>Would like provide additional information relating question provided
No 

 
Question 3(b) Emissions Intensity
<>i) appropriate measurement emissions intensity company
Other 
Microsoft does calculate emissions intensity appropriate measurement likely EBITDA Microsoft’ s financial accounting year does align calendar year emissions data reported

 
<>Please company’ s emissions intensity figure measurement given want enter number 1 ensure use decimal point (e g 0 3) comma (e g 0 3)

 
<>ii) state GHG emissions intensity terms total tonnes CO2 e reported Scope 1 Scope 2 $m turnover EBITDA reporting year Scope 1/ US$millions turnover
0.261

 
<>Scope 2/ US$millions turnover
2.634

 
<>Scope 1/ EBITDA
0.611

 
<>Scope 2/ EBITDA
6.168

 
<>iii) company developed emissions intensity targets
No, we have not developed emission intensity targets for the following reason(s): 
question optional sector elected answer

 
<>a) answer (iii) yes state emissions intensity targets

 
<>b) answer (iii) yes state reductions emissions intensity achieved targets time period

 
<>Would like provide additional information relating question provided
No 

 
Question 3(c) Planning
<>Do forecast company’ s future emissions and/or energy use
No, we do not (Please take the opportunity to explain why not and then go to question 4 a) 
Microsoft estimated future emissions and/or energy use expand new buildings develop new products invest new technologies follow responsible practices energy efficiency

 
<>i) provide details forecasts summarize methodology used assumptions able quantified forecasts Scope 1 Scope 2 emissions and/or electricity consumption enter numerical data page

 
<>ii) factor cost future emissions capital expenditure planning

 
<>iii) considerations impact investment decisions

 
<>Would like provide additional information relating question provided
No 

 
Question 3(c) (i) Planning Forecasted emissions/electricity use Year 1 answers
page gives opportunity numerical forecasts emissions electricity use possible provide emissions forecasts reporting periods Use “ Add additional year figures” button end page enter emission forecasts successive reporting periods Note enter numbers punctuation example use 2000 instead 2 000
<>Please enter accounting period used report GHG emissions details
Dates selected

 
<>Forecasted Scope 1 Direct GHG Emissions provide Forecasted Total global Scope 1 emissions Metric Tonnes CO2 e

 
<>b Forecasted Total Scope 1 emissions Metric Tonnes CO2 e Annex B countries

 
<>By country Forecasted Scope 1 emissions Metric Tonnes CO2 e individual country Using methodology state emissions forecasts 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
(metric tonnes CO2-e)

 
<>Scope 2 Indirect GHG emissions provide c Forecasted total global Scope 2 emissions Metric Tonnes CO2 e

 
<>d Forecasted total Scope 2 emissions Metric Tonnes CO2 e Annex B countries

 
<>By country Forecasted Scope 2 emissions Metric Tonnes CO2 e individual country
Country Scope 2 Emissions
(metric tonnes CO2-e)

 
<>Forecasted electricity consumptione Forecasted total global MWh purchased electricity

 
<>f Forecasted total MWh purchased electricity Annex B countries

 
<>By country – Forecasted MWh purchased electricity individual country
Country

 
<>g Forecasted total global MWh purchased electricity renewable sources

 
<>h Forecasted total MWh purchased electricity renewable sources Annex B countries

 
<>By country – Forecasted MWh purchased electricity renewable sources individual country
Country

 
<>Would like provide additional information relating question provided

 
4 - Governance
Question 4(a) Responsibility
<>Does Board Committee executive body overall responsibility climate change state overall responsibility climate change managed answer parts (i) (ii)
Yes, an executive body does have overall responsibility for climate change. 

 
<>i) Board Committee executive body overall responsibility climate change
February 2006 Corporate Staff Council adopted set Environmental Principles guides Microsoft’ s policies related international environmental regulations specific regional requirements company does business Craig Mundie Executive Vice President Chief Research Strategy Officer executive responsibility implementation Environmental Principles team includes Rob Bernard Chief Environmental Officer role focus Microsoft’ s Environmental effortsThe Environmental Principles http //www microsoft com/about/corporatecitizenship/citizenship/businesspractices/environmentalprinciples mspx

 
<>ii) mechanism Board executive body reviews company’ s progress status regarding climate change
Microsoft’ s Environmental Principles continually improve environmental performance regularly review assess environmental programs practices goals evaluate progress identify areas improvements

 
<>Would like provide additional information relating question provided
No 

 
Question 4(b) Individual Performance
<>Do assess provide incentive mechanisms individual management climate change issues including attainment GHG targets provide details
No, we do not. 

 
<>Would like provide additional information relating question provided
Yes 
Environmental Principle continually improve performance includes employees’ contributions environmental initiatives environmental programs practices extend collaborative software reduces need business travel energy efficient building construction alternatives employee transit recycling kitchen fryer oil biodiesel Employees business key identifying implementing programs

 
Question 4(c) Communications
<>Please indicate publish information risks opportunities presented company climate change details GHG emissions plans reduce emissions following communications i) company’ s Annual Report statutory filings
No 

 
<>ii) formal communications shareholders external parties
No 

 
<>iii) voluntary communications Corporate Social Responsibility reporting
No 

 
<>Would like provide additional information relating question provided
Yes 
Microsoft does specifically publish information GHG emissions plans reduce environmental stewardship sustainability essential components business publish information various programs Today focused protecting environment conserving natural resources continuing create innovative new products enable people businesses world realize potential Microsoft’ s Environmental Principles demonstrate responsibility stakeholders includes communicating objectives targets progress Board shareholders customers public Information efforts available online http //www microsoft com/About/CorporateCitizenship/US/ResponsibleLeadership/EnvironmentalSustainability mspx

 
Question 4(d) Public Policy
<>Do engage policymakers possible responses climate change including taxation regulation carbon trading provide details
Yes 
Microsoft recognizes climate change issue requires comprehensive global response sectors society Microsoft addressing important challenge long term business strategies focused technology leadership innovation global partnerships responsible corporate environmental practices seeking reduce carbon footprint operation greater potential pursuing opportunities partners increase energy efficiency computing utilizing potential software technology innovation help people businesses world address climate change engage range collaborative government multi stakeholder activities globe share perspectives topic ranging participation Washington State’ s Climate Action Team conferences workshops topic sponsored multilateral international agencies agencies OECD

 
<>Would like provide additional information relating question provided
No 

 
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