Thirty to forty percent of global energy use occurs in the building sector, according to a 2007 report from the United Nations Environment Program (UNEP). The report concluded that the building sector can substantially reduce carbon dioxide (CO2) emissions by adopting energy-saving technologies and sustainability practices.

At Microsoft, our construction and facility operations worldwide adhere to best practices and policy guidelines that are designed to reduce our environmental footprint, and we continually update and improve our guidelines so that we do not just comply with but exceed environmental standards.

High Standards for Building Design

For many years, Microsoft has participated in the U.S. Green Building Council's Leadership in Energy and Environmental Design (LEED) program, a program, which encourages global adoption of sustainable ecological (green) buildings. As such, energy efficiency, the use of recycled products, and non-toxic materials play an important role when Microsoft renovates or constructs buildings.

Although Microsoft does not seek certification for every new building, Microsoft designs and builds all new properties to at least a LEED New Construction (NC) Silver certification level. (In the U.S., the LEED Green Building Rating System is the nationally accepted benchmark for the design, construction, and operation of high-performance ecological buildings.)

Microsoft's new facilities in Bellevue, Washington and Hyderabad, India are designed to use 10 to 15 percent less energy than older buildings and to achieve high LEED Commercial Interiors (CI) and NC.

Although the LEED Green Building Rating System is not required by building codes worldwide, Microsoft aims to attain LEED Silver ratings in the facilities it builds around the world.

Emissions Reports for Increasing Wise Policy Decisions

The nonprofit Carbon Disclosure Project (CDP) surveys corporations and makes its requests and corporate responses publicly available. It is the largest repository of corporate greenhouse gas emissions data in the world.

Microsoft supports carbon disclosure and voluntarily reports the company's carbon emissions under the CDP on an annual basis. Microsoft also supports CDP's efforts to compile high-quality information on the impact companies make on the environment.

This information can facilitate dialogue between shareholders, corporations, and policymakers on climate change response.

In addition to CDP, Microsoft participates in some well-known nonprofit programs to measure and evaluate corporate responses to climate change. One nonprofit program is Climate Counts, an organization committed to the transformation of data into action. Climate Counts has recognized Microsoft as one of the top companies in the high tech industry for its innovative approaches and solutions to the problem of climate change.

Waste Reduction through Recycling, Conservation, and Energy-Efficient Equipment

Microsoft has an extensive recycling and conservation program at our corporate headquarters in Redmond, Washington. The program reduces waste and conserves resources at all company facilities.

Examples of environmental conservation include the following:

Public Printing and Paper. Microsoft uses a robust public print program to eliminate the need for individual and departmental printers.

Xerox provides support for the Microsoft Digital Campus program, monitors public printers, and dispatches repair technicians when necessary. With this level of service, Microsoft can maintain a high employee-to-printer ratio, which reduces energy consumption, waste, and emissions.

In Puget Sound facilities in Washington State, the Digital Campus program recycles approximately 325 pounds of toner cartridges and other device components each month. In the calendar year 2007, 89 percent of the toner cartridges used in the Digital Campus program were refilled rather than replaced.

To minimize the use of paper, Microsoft sets all Puget Sound area public printers to print double-sided. Microsoft places recycling containers at each print station and in other areas of Microsoft buildings to collect unused paper. Whenever possible, Microsoft deploys multifunction printers that offer Scan to-e-mail functionality so Microsoft employees can convert hard copy into digital documents and use Digital Workflow in place of printing.

Biodiesel. Each month, more than 1,000 gallons of used fryer oil are sent from Microsoft cafeterias to a Seattle area biodiesel refinery.

Water. An advanced irrigation system at the Redmond campus saves about 11 million gallons annually.

Where possible, Microsoft employs energy-efficient equipment within its facilities, including:

• High-efficiency electric motors for pumps and fans.
• Electronic variable speed drives.
• Electronic ballast for fluorescent lamps.
• Occupancy dimmers.
• Adjustable speed motors for ventilating systems.
• Garage fans with carbon-monoxide sensors that run only when needed.

Alternative Energy Sources

Microsoft invests in new technologies to make use of alternative energy whenever possible. While Microsoft realizes there is room for more solutions, here are a few examples of projects already undertaken:

Hyderabad, Andhra Pradesh, India. At the new Microsoft campus in Hyderabad, India, double-glazed windows and sunshades reduce reliance on air conditioning, lights turn off automatically if offices are unoccupied for more than 10 minutes, and a reservoir recycles rainwater to irrigate the 48-acre campus and to run energy-efficient, water-cooled air conditioning units. The state-of-the-art campus was recognized by the National Safety Council of India with an industry award.

Redmond, Washington, United States. In Redmond, Microsoft's newest buildings feature a unique Under Floor Air Distribution (UFAD) system. By drawing in filtered outside air more than 60 percent of the time, this system reduces the use of the building's chiller plants, which cool water for the air conditioning system. Microsoft has also installed electric sub-meters in all significant computer labs in research and development buildings to improve energy use management. Microsoft's energy consumption in Redmond has been decreasing for the past three years.

Mountain View, California, United States. The Microsoft Mountain View campus generates 480 kilowatts from 2,000 solar panels that cover more than 30,000 square feet of rooftop area, supplying 12 percent of the campus's peak energy needs.

Thames Valley Park, Reading, United Kingdom. Microsoft UK purchases 100 percent renewable electricity at the main office in Thames Valley Park and plans to extend this renewable resource to all other Microsoft offices in the United Kingdom.

Quincy, Washington, United States. In April 2007, Microsoft opened its largest data center to date. The data center is designed to have a minimal carbon footprint. It is also completely hydroelectric powered. Its design prioritizes energy efficiency, water conservation, and the use of ecological building technologies under the LEED rating system.

San Antonio, Texas, United States. Microsoft's new San Antonio data center is designed to use the city's environmental recycled water program and wind power as its primary energy source.

The Effort to Do More

Microsoft's goal is to develop and share best practices with organizations around the world and to respond wisely to climate change. As a corporation with approximately 1 billion customers, Microsoft recognizes that it must adopt leadership practices in pollution prevention and eco-efficiency to do its part to promote environmental sustainability.

Microsoft's efforts to date have seen a reduction in the environmental impact of its operations. However, Microsoft is committed to doing even more. As Microsoft moves forward with its environmental sustainability efforts, Microsoft will expand its investment in facility improvements to further reduce the impact of operations on the environment.