The report indicates a slight reduction in Microsoft's 2024 emissions compared to 2023, suggesting progress in building data centers with lower climate impacts. However, the company needs to drastically cut emissions and enhance carbon removal efforts to meet its 2030 goals. Microsoft has been actively investing in solar power and expanding its zero-carbon electricity portfolio, now at 34 gigawatts. It has also secured large deals to remove millions of metric tons of carbon. Despite these efforts, the expansion into AI and cloud services complicates achieving sustainability targets.
Key takeaways:
- Microsoft's carbon emissions have increased by 23.4% since 2020, primarily due to data center expansion for cloud and AI operations.
- Scope 3 emissions, which are largely outside Microsoft's direct control, account for over 97% of its carbon footprint, with capital goods and purchased goods and services being major contributors.
- Microsoft faces challenges in sourcing zero-carbon electricity near its data centers, as its electricity consumption has outpaced the decarbonization of local grids.
- Despite challenges, Microsoft is making progress by investing in solar power and carbon removal efforts, aiming to meet its 2030 sustainability goals.