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

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By illuminem briefings

· 2 min read

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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