Microsoft Azure: Microsoft and its Scope 3 emissions

According to the tech giant's most recent sustainability report, Microsoft's scope 3 emissions are jeopardizing its ability to meet its carbon neutrality targets, which in 2021 rose by 23% year over year. Some argue that this indicates Microsoft has set lofty aspirations that it cannot achieve. In the next eight years, it aims to become carbon neutral. 

Scope 3 emissions are derived from construction materials, emissions from purchased equipment, delivery emissions. While its latest report noted the company's significant improvements across scope 1 and scope 2, its scope 3 emissions' increased much more than these reduction achievements. More specifically, the company's capital equipment, which includes data centers, office space, and new equipment such as servers, were responsible for around 30% of its Scope 3 emissions. 

This news comes shortly after Microsoft received an "A" rating in regards to its transparency around its climate impact. However, in this case, transparency doesn't indicate action.

In a blog post, Microsoft's Brad Smith, President and Vice-Chair, and Lucas Joppa, Chief Environmental Officer in the report, outlined that the report includes "several important lessons." They outlined: "Our experience this year highlights a few takeaways relevant to many organizations executing against their sustainability commitments." The two added that progress "won't always be linear," adding: "The rate at which we can implement emissions reductions is dependent on many factors that can fluctuate over time, ranging from our own business growth and supplier mix to the rate of growth of green infrastructure, such as the supply of and transition speed to renewable energy."