Responsible Leadership

Environmental Sustainability

Environmental stewardship is integral to Microsoft business. In February 2006, we adopted the Microsoft Environmental Principles, which formalize our ongoing commitment to protect the environment and natural resources as well as the health and safety of our employees, our customers, and the communities where we operate. Every Microsoft employee shares the responsibility of helping the company fulfill these principles, which guide our long-term goals and objectives.

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Green and Energy-Efficient Operations

For many years, Microsoft has participated in the Leadership in Energy and Environmental Design (LEED) program by renovating older buildings and constructing new buildings to enhance energy efficiency and increase use of recycled products and nontoxic materials. Recent initiatives include the following:

• In celebration of Earth Day 2006, employees at the Microsoft Silicon Valley Campus in California unveiled a new solar panel power system. The system is the largest in Silicon Valley, with 2,288 solar tiles covering 31,000 square feet on the roofs of buildings across the campus. It generates 480 kilowatts per hour at peak capacity—enough to power nearly 500 homes—and provides up to 15 percent of the energy used at the facility.
• In April 2006, Microsoft opened Building 2 on its new campus in Hyderabad, India. This state-of-the-art building incorporates sound environmental design and furniture made by local companies. A reservoir captures and recycles 36,000 cubic meters of rainwater to serve the irrigation needs of the 48-acre campus and to run energy-efficient, water-cooled air conditioning units.
• In April 2007, Microsoft opened its largest data center to date, in Quincy, Washington. The facility is powered by hydroelectricity, a renewable and clean-air resource. The construction prioritizes energy efficiency, water conservation, and the use of green building technologies under the LEED rating system.

Recyclable Product Packaging

Effective December 31, 2005, Microsoft eliminated polyvinyl chloride (PVC) from all its packaging. Microsoft collaborated with organizations such as the Center for Health, Environment and Justice to understand the issues with PVC, and we worked with our channel partners to identify and begin using a recyclable alternative material.

In addition, Microsoft reduced the use of plastic clamshells on its products by 70 percent. We are continuing our sustainability efforts in packaging by using cardboard instead of styrene, minimizing packaging size, and testing the use of innovative packaging made from eco-friendly and biodegradable materials.

Reduced Greenhouse Gas Emissions

Microsoft continues to reduce the company's impact on the environment. For several years, we have tracked and made available to the public our annual greenhouse gas emissions inventory following the Greenhouse Gas Protocol developed by the World Resources Institute and the World Business Council for Sustainable Development.

Microsoft has been recognized for its efforts to reduce fuel consumption and vehicle emissions:

• In 2006, Microsoft was named a "best workplace for commuters" in the Puget Sound region of Washington by a coalition that included the U.S. Environmental Protection Agency (EPA), local nonprofit organizations, and transit organizations.
• In 2005, the EPA recognized Microsoft as being among the top five Fortune 500 companies to meet the agency's National Standard of Excellence. This recognition came after Microsoft offered employees commuter benefits to increase their use of alternative forms of transportation.

Sustainability-Enhancing Innovations

Microsoft is also building collaboration software tools and technology that support the environment:

• Microsoft is a leader in the development of collaboration software, such as the Windows Live Meeting network of Internet services, Microsoft Office SharePoint portal server, and Microsoft Office Groove, which enables virtual meetings and more effective teamwork. These products are designed to enhance business productivity and reduce the need for business travel and the physical transfer of documents. This helps lower greenhouse gas emissions and other environmental impacts of businesses.
• Windows Mobile software is the leading operating system for handheld devices and cellular telephones, which enable remote access to e-mail and the Internet and require less energy than a standard portable or desktop computer.
• Microsoft is also innovating to decrease computer energy usage. In our operating systems, the power control panel enables users to limit the idle time before the monitor and hard disk shut off and the system goes into a low-powered standby or hibernate mode. According to the EPA, use of these power management features can decrease computer energy consumption by more than 50 percent.