As a result of global warming, the availability of fresh water, food, and energy will be threatened. The primary cause of global warming is greenhouse gas emissions. Carbon dioxide (CO2), methane (CH4), and nitrogen oxides (NOx) are GHGs produced by the combustion of oil, fossil fuels, and other sources.
Globally, the technology and communication industry contribute about 2% to 3% of greenhouse gas emissions. GHG emissions are released by industry operations such as energy consumption, product manufacture, and product use. According to the International Telecommunication Union, digital technology has the potential to reduce world carbon emissions by roughly 17%. The technology industry can help other sectors improve their efficiency, reducing greenhouse gas emissions.
Microsoft Corp (Microsoft) develops, licenses, and supports software products, services, and devices. The company reported total GHG emissions of 15.51 million tonnes CO2 equivalents (MtCO2eq) in 2021, an increase of 21% from 2020.
GHG emissions fall into three categories - scope 1, 2, and 3. Scope 1 emissions are those produced by a company's own or controlled sources, such as the fuel burned by its vehicles. Scope 2 refers to the indirect GHG emissions from the generation of purchased energy, such as the energy needed to power the company's facilities. Scope 3 emissions refer to the company's other indirect emissions beyond the company’s direct operations and occur in the company’s value chain, including upstream and downstream activities, such as the production of packaging, product transportation, and product use.
In 2021, Microsoft's scope 3 emissions accounted for 98% of its overall GHG emissions (15.20 MtCO2eq). In 2021, the company's Scope 1 emissions climbed by 5% and Scope 2 emissions fell by 28%.
By 2030, Microsoft aims to become a carbon-negative company. To achieve this, Microsoft is improving efficiency across its operations, devices, and supply chain, as well as providing technology to help its customers measure and manage their carbon emissions more effectively.
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