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Nine leading businesses launch new initiative to accelerate progress to a net zero future

Initiative is committed to leading by example, charting the course for other businesses to follow

REDMOND, Wash. – July 21, 2020 – The heads of nine companies today announced the establishment of a new initiative to accelerate the transition to a net zero global economy. The initiative, known as Transform to Net Zero, intends to develop and deliver research, guidance, and implementable roadmaps to enable all businesses to achieve net zero emissions.

The Initiative will be led by founding members including A.P. Moller – Maersk, Danone, Mercedes-Benz AG, Microsoft Corp., Natura &Co, NIKE, Inc., Starbucks, Unilever, and Wipro, as well as Environmental Defense Fund (EDF). The Initiative is supported by BSR, which is serving as the Secretariat for the Initiative.

Transform to Net Zero will focus on enabling the business transformation needed to achieve net zero emissions no later than 2050, in addition to driving broader change with a focus on policy, innovation, and finance. The outputs of the initiative will be widely available to all, though additional companies may join. The Initiative intends to complete the outputs of this work by 2025.

The work will be led by the following principles:

  1. Focused on transformation: Delivering on our individual commitments and translating into action, which will include corporate strategy, governance and accountability, finance and operations, risk management, procurement, innovation and R&D, marketing, and public affairs.
  2. Led by science and best practice data and methods: Committed to standardized approaches to achieve what the best available science requires for a 1.5°C world; committed to improving the quality and availability of research, data, and tools for all; committed to the highest return for the climate on investment.
  3. Leveraging existing efforts: Committed to open collaboration with existing net zero initiatives (sign-on, advocacy, sectorial, methodology efforts) to leverage existing work and advance business transformation to net zero.
  1. Strong governance and oversight: At the highest levels of the company, governance and oversight structures will work to achieve net zero, including through developing innovative products, services, and business models.
  2. Robust reduction and removal across the extended enterprise: Net zero requires emissions reductions across the entire value chain, including impact of products and services and supply chain. Net zero requires us to achieve greenhouse gas (GHG) emissions reductions aligned with the latest science and increase our capacity for GHG removals in the near term to be the path to get companies—and the world—to net zero no later than 2050 to ensure a stable climate, and will mean a mix of climate-positive actions should be pursued.
  3. Investment in innovation: Substantial commitment and willingness to invest in and accelerate innovation to achieve net zero transformation, including partnering with others.
  4. Policy engagement: Advancing public policy that enables and accelerates progress towards net zero, and engagement with bodies such as trade associations to achieve this objective.
  5. Transparency and accountability: Public reporting and disclosure on progress towards net zero transformation to key stakeholders, including investors, customers, consumers, and where required―regulators; sharing information with all stakeholders on good practice to net zero transformation.
  1. Just and sustainable transition: We know that marginalised groups and low-income communities bear the greatest impacts of climate change. Therefore, we will help enable conditions needed to achieve effective, just, and sustainable climate solutions for people of all gender, race, or skills.

Commentary:

A.P. Moller – Maersk

Søren Skou, CEO of A.P. Moller – Maersk, said: “A.P. Moller – Maersk is committed to a carbon-neutral future of transport and logistics. To contribute to the Paris agreement’s goal, we announced our ambition of having net-zero CO2 emissions by 2050 back in 2018. Since then we have taken several concrete actions to decarbonise the industry. The overall target of keeping global warming below 1.5 degrees can only be reached through strong alliances across sectors and businesses. We are therefore happy to join Microsoft and other global companies in the Transform to Net Zero initiative.”

BSR

Aron Cramer, President and CEO of BSR, said: “Over the past decade, many businesses have committed to net zero targets. It is now time to accelerate the actions needed to achieve this essential goal. Our window for staying under 1.5 degrees of warming is closing, and fast.  We are now in a decisive decade, in which we must urgently decarbonize the economy, if we are to stave off the worst impacts of climate change. That’s why Transform to Net Zero is so important. More than just setting a high bar for inspiration, Transform to Net Zero will provide companies with an actionable roadmap enabling them to transform their businesses to thrive in and shape a net zero economy.”

Danone

Emmanuel Faber, Chairman and CEO of Danone, said: “Our One Planet. One Health frame of action puts the climate at the core of the food system transformation. Carbon neutrality is therefore not optional for Danone, it is a way to reinvent our growth model. This revolution cannot be achieved alone. That’s why I truly believe in the collective power of Transform to Net Zero. Let’s share best practices and build new systems to create the evidence-based solutions that will help us drive the change and keep global warming under 1.5°C.”

Environmental Defense Fund

Fred Krupp, President of Environmental Defense Fund, said: “The gap between where we are on climate change and where we need to be continues to widen. So does the gap between businesses that just talk about action and those that are actually getting the job done. This new initiative holds tremendous potential for closing these gaps. Especially if other businesses follow in the coalition’s footsteps, leading by example and using the most powerful tool that companies have for fighting climate change: their political influence.”

Mercedes-Benz AG

Ola Källenius, Chairman of the Board of Management of Daimler AG and Mercedes-Benz AG, said:

“If there is one lesson we can learn from dealing with the COVID-19-pandemic it is how much we can achieve if we act together. This is the only way we can also win the fight against climate change. We need to set common goals and implement measures to achieve them. That’s why we are joining ‘Transform to Net Zero.’ Our mission at Mercedes-Benz is CO2-neutral mobility. We are making good progress towards this end and we are determined to follow through.”

Microsoft

Brad Smith, President, Microsoft, said: “No one company can address the climate crisis alone. That’s why leading companies are developing and sharing best practices, research, and learnings to help everyone move forward. Whether a company is just getting started or is well on its path, Transform to Net Zero can help us all turn carbon commitments into real progress toward a net zero future.”

Natura &Co.

Roberto Marques, Executive Chairman of the Board and group CEO of Natura &Co., said: “At Natura &Co we truly believe in cooperation. We recently released our 2030 Commitment to Life in which we set for all our business the target to become net carbon zero in ten years. But to address the climate crises the world is facing, we need to help each other to do more and faster. The Net Zero initiative strives to do just that, bringing together companies committed to making the right changes at the right pace. We are committed to build a brighter future that will allow not only a greener world for future generations but the economic recovery under new premises that that society is demanding.”

NIKE, Inc.

Andy Campion, Chief Operating Officer, NIKE, Inc., said: “When it comes to protecting the playing field we share—our planet—there isn’t a moment to lose. That’s why we aren’t waiting for solutions to climate change, we’re coming together as global leaders to create them. If we act now, and work together, we can drive meaningful progress toward a more sustainable future. We’ll be relentless in our pursuit of ensuring a healthy planet for generations of athletes to come.”

Starbucks

Kevin Johnson, Starbucks President and Chief Executive Officer, said: “Starbucks aspires to be a resource-positive company by building on our long history in sustainability. Joining Transform to Net Zero aligned with our aspiration for a more sustainable future. Partnering with other like-minded companies, we will open-source best practices, advocate for positive government policies, and support a just transition. We believe in driving real change and encourage other organizations to join us in this critical effort for humanity.”

Unilever

Alan Jope, Unilever CEO, said: “The climate crisis is not only a threat to our environment, but also to lives and livelihoods, and it is critical that we all play a part in addressing it. The business world of the future cannot look like it does now; in addition to decarbonisation, a full system transformation is needed. That’s why we’re pleased to join other leading businesses as a founding member of Transform to Net Zero so we can work together and accelerate the strategic shift that is needed to achieve net zero emissions; in Unilever’s case, by 2039.”

Wipro

Thierry Delaporte, Chief Executive Officer and Managing Director, Wipro Limited, said: “We are pleased to be a founding member of Transform to Net Zero. It is closely aligned with our values and our commitment to sustainability. Climate change is a defining challenge for our times and we firmly believe that businesses must step up and address the challenges head-on. A partnership forum like this can help catalyse and accelerate such a response and guide our future engagements across the value chain through a collaborative spirit of innovative, transformational solutions.”

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BlackRock and Microsoft form strategic partnership to host Aladdin on Azure as BlackRock readies Aladdin for next chapter of innovation

Companies also collaborate on sustainability initiatives

New York and Redmond, Wash. – Tuesday, April 7, 2020 – BlackRock and Microsoft Corp. have formed a strategic partnership to host BlackRock’s Aladdin infrastructure on the Microsoft Azure cloud platform, bringing enhanced capabilities to BlackRock and its Aladdin clients, which include many of the world’s most sophisticated institutional investors and wealth managers.

By adopting Microsoft Azure, BlackRock will both accelerate innovation on Aladdin through greater computing scale and unlock new capabilities to enhance the client experience. BlackRock will also leverage Microsoft Azure’s network of global data centers and capabilities to meet the localized needs of Aladdin clients, all while maintaining Aladdin’s highest standards for resiliency and security.

“As both a user and a provider of Aladdin, this decision reflects BlackRock’s ongoing commitment to continuous innovation and scalable operating solutions,” said Rob Goldstein, Chief Operating Officer of BlackRock. “Aladdin infrastructure deployed on Microsoft Azure’s cloud platform will provide BlackRock with enhanced capabilities to deliver the best outcomes for our Aladdin clients.”

“By bringing Aladdin to the cloud, Microsoft will support BlackRock in further enhancing its client experience while also enabling continuous innovation in the financial services industry,” said Judson Althoff, executive vice president of Microsoft’s Worldwide Commercial Business. “Together, we will empower an ecosystem of financial services customers running their most critical workloads in the cloud.”

As the financial services industry looks to navigate ever-changing markets, institutions need integrated and scalable platforms to adapt to the growing complexity of managing data, risk management and advanced analytics to deliver innovative solutions to clients. To help support this trend, over time, the Microsoft Azure platform will enable BlackRock to accelerate innovation and collaboration between Aladdin and providers across the financial services ecosystem.

Firms to Collaborate on Sustainable Finance

In line with both firms’ commitment to sustainability, BlackRock and Microsoft will also work together on initiatives that leverage technology to improve and expand sustainability data and analytics.  The lack of standardized, high-quality data remains a significant hurdle in understanding the impact of sustainability-related risk on investment portfolios and company performance. Big data, machine learning and AI can all play a critical role in improving access to and the impact and quality of sustainability data.

The two firms will invite collaboration – whether from academics, startups, non-profits or others – on sustainability-related data, analytics and technology. As a first step, the firms will collaborate on challenge grants for organizations that use data and technology to understand and drive sustainability. The firms will also provide technical expertise, leveraging Microsoft’s scale in computing, big data and AI, and BlackRock’s leading investment and portfolio management solutions to support a better understanding of corporate sustainability behavior.

About Aladdin

Aladdin is BlackRock’s end-to-end investment management and operations platform used by institutional investors including asset managers, pension funds, insurers and corporate treasurers.  It combines sophisticated risk analytics with comprehensive portfolio management, trading and operations tools on a single, unified platform.  Also customized for wealth managers, Aladdin provides a common language across the investment lifecycle and enables a culture of risk transparency among users.

 About BlackRock

BlackRock’s purpose is to help more and more people experience financial well-being. As a fiduciary to investors and a leading provider of financial technology, our clients turn to us for the solutions they need when planning for their most important goals. As of December 31, 2019, the firm managed approximately $7.43 trillion in assets on behalf of investors worldwide. For additional information on BlackRock, please visit www.blackrock.com/corporate

 About Microsoft

Microsoft (Nasdaq “MSFT” @microsoft) enables digital transformation for the era of an intelligent cloud and an intelligent edge. Its mission is to empower every person and every organization on the planet to achieve more.

For more information, press only:

BlackRock

Logan Koffler

Email: [email protected]

Phone: (347) 379.0363

Microsoft

WE Communications for Microsoft

Email: [email protected]

Phone: (425) 638-7777

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Building world-class sustainable datacenters and investing in solar power in Arizona

Eco-efficient solar panels
Eco-efficient solar panels convert the sun’s energy into electric power. Courtesy of First Solar, Inc.

For more than a decade, Microsoft has been investing to reduce the environmental impact of our operations while striving to support the digital transformation of more and more organizations and people around the world through cloud services.

We’re working continuously to deliver scalable, highly available and resilient cloud services to more than 1 billion customers across the globe while simultaneously building and operating more efficient and sustainable datacenters that will serve the world well. We’ve made a series of commitments to increase the amount of renewable energy that power our datacenters reaching the 50% mark in 2019 and we’ll hit the 60% mark this year, both well ahead of schedule.

As we work toward our next goal of hitting 70% by 2023 – on our way to powering our datacenters with 100% renewable energy – we’re continuing to expand our global cloud infrastructure with our sustainability goals in mind. We’ve chosen Arizona as the location for the development of new world-class datacenter campuses to support the growing demand for cloud and internet services in Arizona and across the Western United States.

We intend to develop our new datacenter campuses in El Mirage and Goodyear, Arizona to be among the most sustainably designed and operated in the world – powered with 100% renewable energy. Arizona has been increasingly embracing the technology industry with a pool of growing talent, an affordable quality of life for employees, and as many 200 as sunny days a year making it an ideal location for investing in solar power.

We’re partnering with First Solar, an Arizona-based global leader in solar energy, on their Sun Streams 2 photovoltaic (PV) solar plant. The 150-megawatt plant utilizes some of the most sophisticated and eco-efficient solar technology available today, and will provide enough power to cover the energy load for each of our new datacenter campuses once the solar project is operational. The partnership also enables operating efficiencies and supports innovation in First Solar’s state-of-the-art manufacturing facilities through a variety of Microsoft’s intelligent cloud services, including Azure IoT Hub and SQL Data Warehouse. With this agreement, Microsoft now has renewable energy partnerships totaling nearly 1.5-gigawatts.

Our datacenter design and operations will contribute to the sustainability of our Arizona facilities. Microsoft’s datacenter designs are already more energy- and water-efficient than traditional enterprise datacenters. In Arizona, we’re also pursuing LEED Gold certification which will help conserve additional resources including energy and water, generate less waste and support human health. We’re committed to zero waste-certified operations for these new datacenters which means a minimum of  90% of waste will be diverted away from landfills through reduction, reuse and recycling efforts.

We recognize our datacenters consume more than energy, so we’re focused on efficiently utilizing, conserving and replenishing water. As a company, we have begun implementing a water replenishment strategy where we will balance what our operations consume in water-stressed regions by 2030. The advanced design of Microsoft’s datacenters means that our planned datacenters will use zero water for cooling for more than half the year. Our design uses outside air instead of water for cooling when temperatures are below 85 degrees Fahrenheit. When temperatures are above 85 degrees, an evaporative cooling system is used, which is similar to “swamp coolers” in residential homes. This system is highly efficient, using less electricity and a fraction of water used by other water-based cooling systems, such as cooling towers. Additionally, clean solar energy has other sustainability benefits, as it displaces the water needed in traditional process of generating electricity. First Solar estimates that energy generated from Sun Streams 2 will save as much as 356 million liters of water per year compared to traditional power generation.

We’re also looking beyond the datacenter to partnerships that can have a lasting impact on conserving and replenishing water in Arizona. Microsoft is investing in a water conservation project that helps sustain water levels in Lake Mead and will help prevent water shortage in Arizona. The effort is intended to increase Arizona’s water resiliency and help the state meet its Drought Contingency Plan Commitments. Microsoft’s investment in this project has also generated a one-to-one cash match from the Water Funder Initiative that will support the state’s efforts and further expand project impact. The project will benefit the Colorado River Indian Tribes, ultimately resulting in more water in Lake Mead and more efficient water infrastructure.

Microsoft is actively investing hundreds of millions of dollars to develop these world-class datacenter campuses in Arizona. We expect they will create more than 100 permanent jobs across a variety of functions, including mechanical engineers, electrical engineers and datacenter technicians, when the facilities are fully operational, and more than 1,000 construction jobs over the initial building phases.  Once the datacenters are operating, they’re expected to have an annual economic impact of approximately $20 million across communities in Arizona.

Microsoft is committed to being a good neighbor and full participant in the Arizona community. Through our Datacenter Community Development initiative, we are actively engaged in El Mirage, Goodyear, and across Arizona. In the past year, Microsoft invested more than $800,000 on projects that deliver social, economic and environmental benefits to the state.

We’d like to thank the citizens of Arizona, our partners, and government officials, especially Gov. Doug Ducey, Mayor Georgia Lord of Goodyear, and Mayor Alexis Hermosillo of El Mirage, the Arizona Commerce Authority, Arizona Public Service and First Solar for their collaboration to help make our vision for sustainable datacenters and increased renewable energy in Arizona possible.

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Building for the future: Microsoft’s new Swedish datacenters have sustainability firmly in mind

Viewed as a highly sustainable country, Sweden has made strong commitments to reduce environmental impact and the government is pursuing a progressive Fossil Free Sweden initiative. Microsoft is similarly committed to sustainability, and with the development of new world-class datacentres in Sweden, intends to create some of their most advanced and sustainable to date based on their design, power from 100 percent renewable energy sources, and plans for zero-waste operations.

Microsoft has operated as a carbon neutral company since 2012 and is continuously increasing the amount of energy the company uses from renewable sources – wind, solar, and hydropower. Earlier this year, Microsoft President Brad Smith confirmed that, by the end of this year, the company will achieve its target of powering its datacentres with 60 percent renewable energy, and will aim to reach 70 percent renewable energy by 2023, on the path to 100 percent.

“We intend for our datacentres in Sweden to be among the most sustainably designed and operated in the world with the ultimate ambition of achieving zero-carbon operations. The datacentre design we’re developing will further Microsoft’s ongoing commitment to transition to a sustainable, low-carbon future,” said Noelle Walsh, CVP, Cloud Operations & Innovation, Microsoft Corp.

Microsoft will collaborate with Vattenfall, one of Europe’s largest producers and retailers of electricity and heat with support from its Node Pole team, on the sourcing and supply of renewable energy for the future datacentres. The two companies will also collaborate to develop solutions to reduce the carbon footprint of the datacentres and construct new power infrastructure to provide stable power for the facilities and the surrounding areas in Sweden in the coming years. Over time, the new power infrastructure will help further reduce the carbon footprint of the datacentres.

Microsoft and Vattenfall previously announced the largest wind energy deal in the Netherlands in 2017. Microsoft purchased 100 percent of the wind energy generated from a 180-megawatt wind farm that is adjacent to its local datacentre operations in the Netherlands. The wind farm is being constructed and operated by Vattenfall in the Wieringermeer Polder, north of Amsterdam.

“Vattenfall is fully committed to help our customers make fossil free living possible within one generation, so this partnership fits very well with our overall strategy. In collaboration with Microsoft, Vattenfall will develop new energy infrastructure to support this datacentre development in Sweden to ensure ample and reliable power for the facilities and improved reliability to the region,” said Andreas Regnell, Senior Vice President, Strategic Development, Vattenfall. “We will support Microsoft on the sourcing and supply of renewable energy for the future datacentres and help provide innovative solutions to reduce the carbon footprint of the datacentres. Vattenfall Distribution as the regional network owner will construct and build the distribution infrastructure required to connect the large-scale facilities. Over time, the new infrastructure will help further reduce the carbon footprint of the datacentres, while at the same time reinforce an already strong electricity grid in Gävle and Sandviken to the benefit of the people who live there.”

Growing demand for the cloud

The proposed Microsoft datacentres in Sweden are in anticipation of future needs for cloud and internet services as demand in Europe continues to grow. In its recent Q3 2019 earnings report, Microsoft shared that demand for its cloud offerings drove commercial cloud revenue to $9.6 billion in its most recent quarter, up 41 percent year-over-year.

The datacentres in Sweden will add to Microsoft’s existing European datacentre footprint, joining the ranks of its other planned datacentres in Norway and Switzerland, and available datacentres in Austria, France, Finland, Germany, Ireland, the Netherlands, and the United Kingdom.

Microsoft continues to focus on research and development for even greater efficiency and increased renewable energy across its global infrastructure. As part of this process, it also plans to launch a new data-driven circular cloud initiative using the Internet of Things (IoT), blockchain and artificial intelligence (AI) to monitor performance and streamline the reuse, resale and recycling of datacentre assets, including servers. With other innovations such as Project Natick, the world’s first underwater datacentre, and the award-winning Advanced Energy Lab, Microsoft continues to push the boundaries of datacenter innovation and sustainability for both new and existing projects.

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Microsoft Stores partner with iNaturalist to help visitors celebrate Earth Month

If you walk into a Microsoft Store during the month of April, you may feel as if you are communing with nature.

For the first time, Microsoft is celebrating Earth Month in its stores by demonstrating how artificial intelligence can help sustain the planet, while also showcasing Microsoft’s commitment to environmental sustainability.

AI for Earth is a multi-year, multimillion-dollar initiative launched in 2017 to deploy the full scale of Microsoft’s products, policies and partnerships across four key areas:

  • Agrilculture
  • Water
  • Biodiversity
  • Climate

The goal is to transform the way society monitors, models, and manages Earth’s natural resources. This April, every Microsoft Store in the U.S., Canada, Puerto Rico and Australia includes a demonstration of the Seek by iNaturalist app.

The app encourages outdoor exploration and learning by using image recognition technology powered by the Microsoft Azure platform to help identify plants and animals from people’s photos. Users are encouraged to explore nature in their neighborhood by earning badges for finding different species and completing challenges.

A ladybug image displayed on a monitor captured on a smartphone
The Seek by iNaturalist app uses image recognition technology powered by the Microsoft Azure platform to help identify plants and animals from people’s photos.

The Seek app does not collect personally identifiable information. An account is not needed and all achievements and badges are stored on your device. However, it is relying on a computer vision model trained solely on photos submitted and identified by the iNaturalist community. The iNaturalist users who choose to share their photos are creating quality data for other nature lovers seeking to better understand and protect nature.

“Part of the power of AI is the more people use it, the better it gets,” said Sandra Andrews, head of marketing and experience for Microsoft Store. “By taking a picture of a plant or wildlife, you are doing your part to make the system smarter while becoming a citizen scientist.”

Andrews envisions the Microsoft Store retail experience as a great opportunity to teach and engage customers. “We want our customers to feel a sense of surprise and delight,” Andrews says. “Most retail environments feel transactional, but at Microsoft Store we want our customer experience to be more interactive. It’s about helping you achieve more and about bringing that technology to life. We want to make you aware of how technology can positively impact your life.”

For Andrews, Earth Month is a perfect opportunity to give customers more than just a typical retail experience.

Sandra Andrews uses the Seek by iNaturalist app
Sandra Andrews, head of marketing and experiences at Microsoft Store, uses the Seek by iNaturalist app to identify plants in her community.

“We work to make Microsoft come to life in our retail stores, which I think about as learning centers, making them destinations to help people achieve more,” she says. “We are a physical manifestation of the Microsoft mission statement: to help every person and organization on the planet to achieve more.”

The Earth Month experience at Microsoft retail outlets also helps demonstrate the company’s commitment to the environment. For example:

  • Microsoft helps protect 15 million acres of forests.
  • Microsoft operates 100% carbon neutral.
  • Microsoft’s packaging is 72% recycled materials.
  • Surface and Xbox are 95% recyclable.

Other in-store Earth Month initiatives:

  • Microsoft partnered with The Nature Conservancy (TNC) this year and will donate $50 per transaction in April to the nonprofit’s Plant a Billion Trees initiative, which aims to plant 1 billion trees by 2025. With each transaction, Microsoft will help TNC plant 25 trees up to a total of $25,000.
  • Microsoft Store, which provides a recycling program year-round for when you buy a new device, has amped up the program for Earth Month. For every recycled laptop, tablet, phone or gaming console, Microsoft will also donate to TNC’s tree-planting program.

Top image: Margie Strite, left, Microsoft Store community development specialist, takes a customer through the Seek by iNaturalist in-store experience. 

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Brad Smith: We’re increasing our carbon fee as we double down on sustainability

Phot of forest trees being inventoried
Image of trees with data and insights provided by Microsoft AI.

Since 2009, Microsoft has made and met a series of commitments to reduce the company’s carbon footprint. While we’ve made progress toward our goal of cutting our operational carbon emissions by 75 percent by 2030, the magnitude and speed of the world’s environmental changes have made it increasingly clear that we must do more. And we are taking new steps to do just that.

Today, we are announcing that we will nearly double our internal carbon fee to $15 per metric ton on all carbon emissions. This internal Microsoft “tax” was established in 2012 to hold our business divisions financially responsible for reducing their carbon emissions. The funds from this higher fee will both maintain Microsoft’s carbon neutrality and help us take a tech-first approach that will put sustainability at the core of every part of our business and technology to work for sustainable outcomes. In practice, this means we’ll continue to keep our house in order and improve it, while increasingly addressing sustainability challenges around the globe by engaging our strongest assets as a company – our employees and our technologies.

Today, I’d like to share new steps we’re taking in four areas:

Building sustainable campuses and data centers

We will continue to build, renovate and operate our campuses in a manner that reduces our impact on the environment. At our headquarters in Redmond, Washington, we have started work to construct 17 new buildings totaling 2.5 million square feet. We will remove fossil fuels from these new buildings and run this new addition, as well as the rest of our campus, on 100 percent carbon-free electricity. We are also reducing the amount of carbon associated with the construction materials of our new buildings by at least 15 percent, with a goal of reaching 30 percent, through a new online tool. Combined with our smart building technology, Microsoft will be the first large corporate campus to reach zero-carbon and zero-waste goals.

In our data centers, we will continue to focus on R&D for efficiency and renewable energy. In 2016, we announced that we would power our data centers with more renewable energy, setting a 50 percent target by the end of 2018 and topping 60 percent early in the next decade while continuing to improve from there. We hit the first target nearly a year ahead of schedule, and today we are sharing the news that we will reach the 60 percent milestone before the end of this year. We’re therefore setting our next milestone on the path to 100 percent renewable energy, aiming to surpass the 70 percent target by 2023. We’ll also launch a new data-driven circular cloud initiative using the Internet of Things (IoT), blockchain and artificial intelligence (AI) to monitor performance and streamline our reuse, resale and recycling of data center assets, including servers.

We will also add water to our long-standing carbon and energy commitments, launching a new water replenishment strategy where we will replace what our operations consume in water-stressed regions by 2030.

Accelerating research through data science

Data is a critical part of our work and a global transition to a low-carbon future. Data can help tell us about the health of our planet, including the conditions of our air, water, land and the well-being of our wildlife. But we need technology’s help to capture this vast amount of data and convert it into actionable intelligence. Despite living in the Information Age, when it comes to environmental data we are still too often flying without real insights.

We founded our AI for Earth program in 2017 with this challenge in mind. Since then, we’ve launched two new APIs that help provide the scale and flexibility to transform how people working on sustainability issues process data and generate valuable insights. More than 230 grantees are now using Azure and AI to create new models and discover new insights. But we have learned there’s still more we can do to accelerate this work.

Today, we’re committing to hosting the world’s leading environmental data science sets on Azure. These large government datasets contain satellite and aerial imagery, among other things, and require petabytes of storage. By making them available in our cloud, we will advance and accelerate the work of grantees and researchers around the world. We will also continue work to bring new APIs and applications to the AI for Earth gallery and mature projects into platform-level services as we’ve done with land cover mapping.

Helping our customers build sustainable solutions

As the world’s needs heighten, we are working more closely than ever with our customers to use digital technology and AI to address sustainability challenges. We are making this an increasing focus across every part of our company, and in the coming months we’ll share more details about our plans to develop and deploy products to facilitate our customers’ and partners’ growth with sustainability in mind.

Already we’re helping empower our customers and partners with new technology to help them drive efficiencies, transform their businesses, and create their own solutions to create a more sustainable planet. At Microsoft we call this infusion of technology tech intensity, and we’re seeing it propel sustainable growth around the globe. Let me share a few examples.

Companies like Ecolab and Ørsted are improving water conservation and efficiency of renewable energy with Microsoft Azure, IoT and AI. Siemens Gamesa Renewable Energy has deployed a digital solution called Hermes with autonomous drones to inspect turbines and is now building on this with Azure AI to improve operations further to help make renewable energy more affordable and the future more sustainable. Bühler, one of the world’s leading grain processing providers, keeps food healthy and safe for 2 billion people every day. Their goal is to reduce 30 percent of waste and 30 percent of energy that goes into food production processing for customers by 2020. Silvia Terra, a small start-up, is focused on using AI to improve our understanding of forests and better manage these economic and environmental assets. Through its work with AI for Earth, they’ve completed a national inventory of forests, down to the tree level.

These companies’ technology breakthroughs offer a blueprint for sustainable economic growth. New research we commissioned with Pricewaterhouse Coopers UK (PwC UK) shows that greater adoption of AI across even a few sectors has the potential to boost global GDP by up to 4.4 percent, while also reducing global greenhouse gas emissions by as much as 4 percent. This is approximately 2.4 gigatons of CO2, equivalent to zeroing out the 2030 annual emissions of Australia, Canada and Japan combined.

Advocating for environmental policy change

Finally, public policy has an important role in creating enabling environments to accelerate the reduction of carbon emissions. That is why we’re joining today the Climate Leadership Council (CLC). CLC is an international policy institute founded with business leaders – many of whom are our customers – as well as economists and environmental leaders to promote a national carbon pricing approach. In addition to our internal carbon tax, we supported the recent Washington state ballot measure on pricing carbon and believe it’s time for a robust national discussion on carbon pricing to lower emissions in an economically sound way.

Addressing these global environmental challenges is a big task. Meeting this raised ambition will take the work of everyone across Microsoft, as well as partnerships with our customers, policymakers and organizations around the world. This road map is far from complete, but it’s a first step in our renewed commitment to sustainability. Time is too short, resources too thin and the impact too large to wait for all the answers to act. There’s an incredible opportunity to be realized by acting, supported by data and technology, on climate change. We are starting our journey to embrace that challenge and enhance opportunities for everyone on the planet today.

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