Does Microsoft Keep Track Of Your Carbon Emissions?
Written By: Michael Kraten, PhD, CPA - https://www.linkedin.com/in/michaelkraten/
When you add content to Microsoft’s LinkedIn service, the technology giant learns more about you. Because you consciously add each item to your profile, that isn’t very surprising.
But what about the amount of carbon that you indirectly emit into the atmosphere when you use Microsoft’s products? Are you conscious of the amount of electricity that you use and the amount of carbon that you emit? And does Microsoft keep track of that information?
On Page 19 of Microsoft’s 2021 Environmental Sustainability Report, the firm’s “Scope 3 Emissions By Source” disclosure explains that “Use of Sold Products” accounted for 28.07% of its total firm-wide emissions. In other words, customers like you accounted for more than one quarter of its total Scope 3 emissions.
How does Microsoft know that? Does the firm embed tracking devices in our devices to quantify Scope 3 emissions from the use of sold products? Page 98 of the 2021 Report explains:
> The reported emissions ... represent an estimate based on assumptions ...
> As the product life cycle assessments ... continue to be improved, the emissions calculations (and) … energy use assumptions have been updated to reflect our latest understanding of device use via telemetry.
> Overall increase … is driven by an increase in sales and usage of devices.
Scope 3 disclosures are thus derived from a combination of assumptions, assessments, and understandings. Interestingly, though, “telemetry” does imply some remote data transmission.
This is why it’s so important to attend conferences like our INTEGRATE event. Our Pillar 5, addressing integrated reporting and advocacy, will address data collection protocols and reporting processes for Scope 3 emissions and other ESG outcomes.
Please join us at the conference. As you learn more about the practices of firms like Microsoft, you’ll become increasingly empowered to develop suitable practices for your own firm.
