Microsoft has published its 2025 Environmental Sustainability Report, covering the company’s progress in fiscal year 2024 against its 2020 baseline. The report details Microsoft’s advancements toward its ambitious 2030 environmental sustainability goals: becoming carbon negative, water positive, and zero waste while protecting ecosystems.
Progress Toward 2030 Goals
Microsoft has made significant strides in several key areas:
- Ecosystems: The company exceeded its 2025 target of protecting more land than it uses, achieving over 30% more than the target. AI innovation is now driving biodiversity conservation through research efforts led by the AI for Good Lab and tools like the Microsoft Planetary Computer.
- Zero Waste: Microsoft diverted 85% of construction and demolition waste in FY24, exceeding its annual target six years early. The company also surpassed its reuse and recycling rate target for servers and components, reaching 90.9%. The Surface Copilot+ PCs feature Microsoft’s most sustainable packaging design yet.
- Water Positive: Microsoft met its target to provide clean water and sanitation solutions to over 1.5 million people. The company is on track to replenish more water than it consumes across global operations and improve datacenter water use efficiency.
- Carbon Negative: Microsoft has contracted 34 gigawatts of carbon-free electricity across 24 countries and entered long-term agreements to procure nearly 30 million metric tons of carbon removal.
Challenges and Strategies
While Microsoft’s total emissions increased by 23.4% compared to its 2020 baseline due to growth-related factors like AI and cloud expansion, the company remains committed to its carbon negative goal by 2030. To achieve this, Microsoft is focusing on reducing its value chain emissions, including Scope 1, 2, and 3 emissions.
The company is implementing strategies such as:
- Procuring carbon-free electricity (CFE)
- Reducing Scope 3 emissions through supplier engagement programs
- Developing innovative solutions to reduce emissions from key datacenter and operational inputs
- Accelerating carbon removal initiatives
- Improving operational efficiency and logistics
Accelerating Global Solutions
Microsoft recognizes that driving meaningful sustainability progress requires global collaboration, investment, and innovation. The company is working to empower customers, build impactful partnerships, and invest in breakthrough solutions that drive progress worldwide.
Some key initiatives include:
- The Climate Innovation Fund (CIF), a $1 billion commitment to advance climate innovation
- Empowering customers with AI-powered platforms for advanced analytics and reporting insights
- Partnering with organizations like GitHub and Xbox to scale impact
- Accelerating AI for sustainability through the AI for Good Lab and research teams
Sustained Momentum and Future Impact
Microsoft remains committed to transparency, accountability, and collaboration as it continues on its sustainability journey. The company is dedicated to driving sustained momentum toward its 2030 goals and beyond.
