Microsoft reports mixed progress toward ambitious 2030 carbon negative goal

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🗞️ Driving the news: Microsoft has reported a slight drop in its annual greenhouse gas emissions for 2024, marking the first decline since its AI-driven expansion significantly increased energy demand
• However, emissions remain 23% higher than in 2020, the baseline year for its pledge to become carbon negative by 2030
• While this year’s results show tentative progress, the company acknowledges that substantial challenges remain, particularly in addressing supply chain emissions and data center energy use

🔭 The context: In 2020, Microsoft (see sustainability performance) committed to not only reaching net-zero emissions but also becoming carbon negative by 2030 — removing more carbon from the atmosphere than it emits
• Since then, surging demand for cloud computing and generative AI has accelerated energy consumption
• Although Microsoft has invested heavily in renewable energy and carbon removal initiatives, the steep rise in Scope 3 emissions (those from its supply chain) continues to offset its gains

🌍 Why it matters for the planet: As one of the world's largest tech firms, Microsoft’s climate trajectory sets a critical precedent for digital infrastructure sustainability
• Its massive renewable energy contracts (19GW in 2024 alone) and pioneering purchases — such as low-carbon cement — could catalyze industrial decarbonization
• The increase in Scope 3 emissions underscores the difficulty of aligning rapid tech growth with deep decarbonization, especially across global supply chains

⏭️ What's next: Microsoft aims to fully match its energy use with renewable sources by 2025 and scale carbon removal solutions by 2030
• Key upcoming efforts include decarbonizing its construction materials, compelling supplier action on clean energy, and influencing grid decarbonization in the regions it operates
• The company’s path forward hinges on expanding clean energy access and controlling indirect emissions, especially amid the growing energy demands of AI

💬 One quote: “Our journey towards being carbon negative is a marathon, not a sprint,” wrote Microsoft’s Brad Smith and Melanie Nakagawa in the report’s foreword

📈 One stat: Scope 3 emissions — primarily from Microsoft’s supply chain — have increased by 26% since 2020, making up the largest share of the company's carbon footprint

See on illuminem's Data Hub™ the sustainability performance of Microsoft and its peers Google, and Apple

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