Environmental
Sustainability
Report 2025

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As Microsoft continues to grow and innovate, our commitment to environmental sustainability remains a core value. Our annual report is an opportunity to share our learnings to help accelerate markets, provide transparency around our progress, and explore how we can scale solutions across our value chain.

Accelerating progress to 2030

At this halfway point to our 2030 goals, we’re reaching key milestones and making meaningful progress. Together, with our customers, partners, and employees, we can build a healthier, more sustainable future.

Accelerating progress to 2030

At this halfway point to our 2030 goals, we’re reaching key milestones and making meaningful progress. Together, with our customers, partners, and employees, we can build a healthier, more sustainable future.

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Microsoft Sustainability Carbon

Getting to
carbon negative

We’re reducing operational emissions and scaling carbon removal with strategic investments on our journey to becoming carbon negative.

Tracking progress toward carbon negative by 2030

In FY24, we contracted nearly 22 million metric tons of carbon removals.

In-year neutrality 1,690,940

2030 carbon negative 2,804,056

2031+ carbon negative and historic emissions 17,432,374

21,927,370

5M

0M

10M

15M

20M

25M

Total metric tons contracted

Breakdown

A horizontal bar graph. The first bar shows the total contracted carbon removals: 21,927,370 metric tons. The second breaks down this total into three categories: 17,432,374 from 2031+ carbon negative and historic emissions, 2,804,056 from 2030 carbon negative commitments, and 1,690,940 from in-year neutrality.
Exterior view of the Microsoft Thermal Energy Center, featuring its modern industrial design with sleek metal cladding.

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Transforming datacenters for efficiency

As demand for AI and cloud services grows, we’re redefining how we design, build, and operate datacenters—using innovations like direct-to-chip cooling, which saves over 125 million liters of water per facility each year, and hybrid timber-steel construction, which reduces embodied carbon by up to 65% compared to traditional concrete models.

An aerial view of the Kotun Solar Project in Poland, showcasing an expansive green field covered with numerous solar panels adjacent to farmland.

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Scaling access to decarbonization tools

Microsoft has contracted 34 GW of new renewable energy across 24 countries, expanding access to carbon-free electricity through global procurement, innovative contracts, and infrastructure partnerships—advancing decarbonization across industries and communities.

Microsoft Sustainability Water

Getting to
water positive

In 2020, we set the ambitious commitment of becoming water positive by 2030. Our approach is designed to mitigate water stress, safeguard critical watersheds, and support global resilience.

Replenishment activities

Our water replenishment portfolio works to improve watershed health through a broad range of activities.

60M

25.5M

13.2M

12.9M

2.8M

10M

0M

20M

30M

40M

50M

50M

FY20

FY21

FY22

FY23

FY24

Total contracted volume water replenishment (m³)

A vertical bar graph displaying contracted water replenishment volume in cubic meters by fiscal year. The X-axis lists the fiscal year and the Y-axis shows total volume in cubic meters. 2,840,030 contracted in 2020. 12,937,207 contracted in 2021. 13,230,308 contracted in 2022. 25,530,485 contracted in 2023. 50,031,857 contracted in 2024.
Through the Climate Innovation Fund, we invested $25 million in Water Equity’s Water & Climate Resilience Fund, aiming to provide safe water and sanitation to 15 million people.
A blue truss structure at the Quincy Water Reuse Utility captured in soft lighting at dawn. The structure rests over water and casts a reflection on the surface.

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Reducing potable water use

In Quincy, Washington, we partnered with the local municipality to build the Quincy Water Reuse Utility, recycling cooling water, reducing Microsoft’s potable water use in the region by 97%, and providing 1.5 million cubic meters of water annually for community drinking water needs.

Microsoft Sustainability Waste

Getting to
zero waste

In 2020, we committed to becoming zero waste by 2030—part of a broader effort to support the global transition to a circular economy and away from the traditional linear model of take, make, and waste.

Advancing circular cloud hardware and packaging

In FY24, we diverted 88.1% of operational waste and reused or recycled 90.9% of servers and components—meeting our goal a year early.

Diverting operational waste from landfills and incinerators

In FY24, we diverted approximately 26,000 metric tons of waste from being landfilled or incinerated across our owned datacenters and campuses.

Diverted waste total

90% Target

20%

0%

40%

60%

80%

100%

82.2%

80.7%

84.9%

82.0%

88.1%

FY20 Base Year

FY21

FY22

FY23

FY24 Current Year

Diverted

Non-diverted

Landfill

Incinerated

Composted

Recycled

Reused (on-site)

Reused (on-site)

Reduce

Horizontal bar graph breaking down diverted and non-diverted operational waste from landfills and incinerators by fiscal year. The x-axis represents the percentage of diverted waste from 0% to 100% and the y-axis lists the fiscal year. 82.2% was diverted in base year 2020. 80.7% in 2021. 84.9% in 2022. 82% in 2023. 88.1% in current fiscal year 2024.
Top-down view of a person holding a screwdriver and removing hardware from a server, with exposed wiring and circuitry visible.

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Applying a circular mindset

Since 2020, we’ve been systematically phasing out single-use plastics in our packaging and have prioritized recyclability. The new Surface Pro 11 and Laptop 7 earned an 8/10 iFixit repairability score, with 11+ replaceable components and enclosures made from 100% recycled aluminum alloy.

Designing our product packaging for circularity

In FY24, we achieved a rate of 94.8% recyclability across all Microsoft product packaging.

2030 Target

80%

75%

85%

90%

95%

100%

90.2%

92.7%

94.4%

93.9%

94.8%

FY20 Base Year

FY21

FY22

FY23

FY24

Packaging recyclability

As we are changing the greens on the Water graph, we should do this on here too; First 4 lines should be dark green, and last line should be neon green.

Microsoft Sustainability Ecosystems

Protecting
ecosystems

From supporting pollinator habitats on campuses to integrating biodiversity into datacenter designs, we’re embedding ecological considerations into our operations. Through partnerships and innovative technologies, we’re helping to protect and restore ecosystems locally and globally.

Meeting our target of protecting more land than we use by 2025

As of FY24, Microsoft has permanently protected 15,849 acres—exceeding its land protection target by over 30%.

Total land contracted to be protected

Total land protected

Microsoft land use footprint

15,849 acres

11,900 acres

17,439 acres

A nested square area chart with three progressively smaller squares representing: 17,439 acres of total land contracted for protection, 15,849 acres of land permanently protected, and the Microsoft land use footprint at 11,900 acres.

Through partnerships with One Tree Planted and American Forests, Microsoft has expanded urban forestry efforts to enhance green spaces, mitigate urban heat islands, and improve stormwater management. One Tree Planted has supported the planting of 87,000 trees across nine projects in eight countries.

15,849 acres of land protected.
Two endangered Masai giraffes standing in front of acacia trees in a savannah landscape

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Scaling AI tools for conservation

Through the AI for Good Lab, Microsoft supports researchers worldwide in tackling biodiversity challenges with AI-driven tools. In Colombia, Project Guacamaya uses AI, satellite imagery, and bioacoustics to monitor Amazonian biodiversity—analyzing over 100,000 rainforest sounds with over 80% accuracy to enable rapid ecological response.

Customer Sustainability

Accelerating
progress through
technology

Microsoft is committed to providing innovative technology to help build a more sustainable world. We are advancing greener software and reducing carbon intensity to improve device sustainability and helping organizations measure and manage the health of the planet’s natural ecosystems.

Harnessing data for climate impact

We believe AI is essential for advancing sustainability progress at speed and scale. AI supports the sustainability workforce and empowers organizations to measure, predict, and optimize complex systems.


1.

Expanded
capabilities

Delivering enhanced solutions to simplify both voluntary and mandatory ESG reporting for all users.

2.

Enhanced
transparency

Extending Sustainability Manager to give a more complete view of ESG metrics across the value chain.

3.

Advanced AI capabilities

Bringing more AI-driven insights and tools to empower users to optimize operations and forecast outcomes.

4.

Sustainability
data

Expanding Microsoft Fabric as a hub for sustainability data, giving customers more ways to track and report progress.

Satellite image of a swirling, symmetrical hurricane with a clear eye at the center from the Microsoft Planetary Computer.

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Planetary Computer: Data for resilience

The Microsoft Planetary Computer offers an open, cross-domain geospatial platform that empowers everyone with the data they need to monitor, model, and protect Earth’s natural resources, with 50+ petabytes of data across 120+ open collections.

Global Sustainability

Catalyzing
global impact

We’re focused on accelerating the availability of new climate technologies, strengthening our climate policy agenda, helping to develop a more reliable and interoperable carbon accounting system, advocating for skilling programs to expand the green workforce, and facilitating a just energy transition.

The Microsoft Climate Innovation Fund has allocated over $793 million in capital to bring new supply to market and accelerate adoption and cost reduction in key target technologies.
Construction workers pour concrete from a large mixing truck into a frame on the ground

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Designing novel materials

Microsoft, with Elemental Impact, Capgemini, and Bouygues, launched the Build Better Innovation Challenge to identify low-carbon material solutions that reduce Scope 3 emissions. The partnership draws on the strengths of global industry leaders to offer winners pilot opportunities and technical support.

Key statistics: LinkedIn provided $6 million in free advertising to sustainability-focused organizations from its Ad Grant program. Global demand for green talent grew twice as quickly as supply between 2023 and 2024—with demand increasing by 11.6% and supply by 5.6%. Job seekers with green skills or titles see a 54.6% higher hiring rate than the workforce overall.
Key statistics: LinkedIn provided $6 million in free advertising to sustainability-focused organizations from its Ad Grant program. Global demand for green talent grew twice as quickly as supply between 2023 and 2024—with demand increasing by 11.6% and supply by 5.6%. Job seekers with green skills or titles see a 54.6% higher hiring rate than the workforce overall.
Melanie Nakagawa Chief Sustainability Officer
top

As we enter the second half of the decade, Microsoft remains steadfast in our dedication to achieving the company’s 2030 environmental sustainability commitments.

bottom

Melanie Nakagawa
Chief Sustainability Officer

Beyond
our
report

We believe in the power of transparency and accountability to accelerate progress. Our work doesn’t stop here—we’re working on a number of initiatives to create a more sustainable future.


Advancing sustainability

We’re building sustainability into everything we do—including our operations, products, solutions, and beyond our four walls.

Empowering our customers

We’re developing and delivering sustainable solutions, tools, and resources to help our customers accelerate their sustainability progress.

Enabling societal impact

We believe that companies that can do more, should. In this era of AI, we remain committed to responsible innovation, ensuring that we’re building a responsible future for everyone.