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Microsoft Sustainability Actions

Published annual sustainability reports

Microsoft says it publishes yearly environmental sustainability reports and shares progress against its 2020 baseline. In its 2025 report, it says it tracks carbon, water, waste, and ecosystems, and explains both progress and setbacks. The company also says it uses a cross-company Climate Council to help guide sustainability work across operations, products, and partnerships. This shows a formal reporting process, not just one-off announcements.

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Matched electricity with renewables

Microsoft says it matched 100% of its annual global electricity use with renewable energy. In plain terms, that means it bought or arranged enough renewable power to cover the electricity it used in that year. The company presents this as part of its carbon strategy and says it is also signing long-term power purchase agreements, or PPAs (contracts to buy electricity from a project), to bring more clean power onto the grid.

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Replenished more water than used

Microsoft says it replenished more than 14.2 million cubic meters of water and, for the first time, surpassed its global water withdrawals. Replenishment means putting water back into local systems through projects such as restoration or access work. The company also says it is improving datacenter water efficiency and has designed a new datacenter model that uses zero water for cooling, which it says could avoid about 125,000 cubic meters per facility each year.

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Improved reuse and recycling

Microsoft says it reached a 92% reuse and recycling rate for servers and components in its cloud hardware, above its 90% target. It also says it diverted 85% of construction and demolition waste in FY24, and processed packaging from more than 30,000 server racks through recycling programs. This points to a stronger focus on keeping materials in use longer instead of sending them to landfill.

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Planted native trees with local groups

Microsoft says it worked with local nonprofits, municipalities, and volunteers to plant more than 150,000 native trees. Native trees are species that naturally belong in an area, so they can help local habitats more than imported species. The company links this work to habitat creation and ecosystem protection, and says it also uses digital tools to support stronger ecosystems.

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Built sustainability products

Microsoft offers software and cloud tools that help other organizations measure emissions, manage ESG data, and prepare sustainability reports. Examples include Microsoft Sustainability Manager, sustainability data tools in Microsoft Fabric, the Emissions Impact Dashboard, and a CSRD template in Microsoft Purview Compliance Manager. CSRD is the EU’s Corporate Sustainability Reporting Directive, a rule that requires more detailed sustainability reporting. These products are aimed at companies that need help tracking and reporting environmental impact.

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Invested in climate innovation

Microsoft says it created a $1 billion Climate Innovation Fund to support new climate technologies, especially in underfunded markets and high-impact areas. It also says it has contracted 34 gigawatts of carbon-free electricity across 24 countries and entered long-term agreements for nearly 30 million metric tons of carbon removal. Carbon removal means taking carbon dioxide out of the air and storing it. These actions show large-scale investment in climate solutions, though they are still part of a broader long-term plan.

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