Microsoft imposes new climate requirement on suppliers in effort to lower its emissions

illuminem summarizes for you the essential news of the day. Read the full piece on The Wall Street Journal or enjoy below:

🗞️ Driving the news: Microsoft will require its key suppliers to use 100% carbon-free energy by 2030, as it faces challenges in reducing emissions due to AI infrastructure and supply chain impacts
• The company reported a 30% rise in overall emissions, primarily from indirect sources

🔭 The context: Despite reducing its direct emissions, Microsoft struggles with Scope 3 emissions, which account for over 96% of its total emissions
• The new energy requirements will be implemented from the 2025 fiscal year as part of an updated Supplier Code of Conduct

🌍 Why it matters for the planet: This initiative by Microsoft aims to significantly reduce the carbon footprint of its extensive supply chain, setting a precedent in the tech industry and contributing to global decarbonization efforts

⏭️ What's next: Microsoft plans to assist its suppliers in meeting these new standards and will closely monitor their progress
• The company is partnering with climate solutions adviser 3Degrees to facilitate access to renewable energy

💬 One quote: "Right now for so many it’s just about getting them started. We have thousands upon thousands of suppliers," said Melanie Nakagawa, Chief Sustainability Officer, Microsoft

📈 One stat: Microsoft's Scope 3 emissions rose by 31% in 2023 compared to its 2020 baseline.

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