Microsoft Carbon Fee TJ DiCaprio December 2016

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1 Microsoft Carbon Fee TJ DiCaprio December 206

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6 Be lean Reduce energy and travel consumption Reduce energy consumption Optimize air travel with Microsoft collaboration technology Be green Make environmentally responsible choices with our renewable electricity and carbon credit procurement Procure renewable electricity for datacenters, campuses, labs, and manufacturing sites Invest in strategic carbon offset community projects to help develop lowcarbon communities around the world Be accountable Quantify and holding groups responsible for carbon impact Operate carbon neutral & hold business groups responsible by charging the teams responsible for carbon and using the funds to support carbon mitigation measures Improve transparency by tracking, publically reporting, and evangelizing progress Ensure resilient operations Hold suppliers accountable for tracking and reducing carbon Meet customer requirements for responsible operations and quantifying carbon from use of our cloud services and devices. Expand our impact to accelerate global and local good.

7 Carbon fee: The price of carbon is set based on the price of our investment pool divided by the operational footprint Charged to our 2 Business Groups Central fund Investments in renewable energy, carbon offsets, Climate grants, and tracking & reporting.

8 Renewable energy Carbon offsets Climate grants Tracking & reporting

9 4 billion kwh pu r chased and applied (g r een power) 9.5 million mt C O2e carbon r eduction (carbon o ffset community p r ojects and g r een power r eductions) c a r b o n TM >7 million people impacted (carbon o ffset community p r ojects)

10 Landfill gas Biomass Wind Hydroelectric Solar Geothermal

11 Carbon offset investments: Bing Maps Supporting low-carbon economic development around the world More than 7 million people impacted: 44 projects 3 project types 25 countries >2M mtco2e >7,000 youths educated Youth Spark >0,000 people with healthcare Mexico Improved Mexican Cookstoves USA FL & NC LFG Utilization (SP) Ashford Improved Forest Management Mississippi Valley Restored Ecosystem Nisqually Land Trust Guatemala Guatemala Water Treatment & Cookstoves Peru Alto Mayo REDD+ Chile Valdivian Coastal Reserve Ghana Improved Ghanaian Cookstoves Brazil Acre Amazonian Rainforest Conservation REDD+ Cerâmica Menegalli Biomass Brazil Farm Methane Turkey Soma Wind Power Ankara Landfill Gas to Energy Uganda, Malawi, Rwanda, Eritrea Restored Water Infrastructure Zambia Lower Zambezi Community Conservation Malawi Kulera Landscape REDD+ and Cookstoves India Jogimatti Wind Power Tamil Nadu Wind Power SELCO Solar Power India Solar Water Heating Madagascar Makira REDD+ Mongolia Mongolian Insulation and Energy Efficiency Nepal Improved Nepalese Cookstove Program China Chifeng Wind Power Hebei Wind Power (SP) Sichuan Household Biodigestor Thailand Bangkok Kamphaeng Saen LFG to Energy Cambodia Oddar Meanchey Community REDD+ Indonesia Rimba Raya REDD+

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13 5M sq. ft. / 8 Buildings 30k pieces of mechanical equipment 7 major bldg mgt systems 500 million data points collected per day $.5M in cost savings in first year

14 Scalable and Cost Efficient Renewable Energy Extending Fuel Cell Benefits WWTP Operational Experience Data Best Practice for Recycling Biogas Sewag e Treatment Plant Gas Treatment Generation Data Center

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16 Expanding beyond carbon neutral operations to accelerate global and local good aka.ms/carbonfee aka.ms/carbonimpact aka.ms/carbon aka.ms/uplift aka.ms/beyond

17 203 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

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