In 2020, Microsoft (NASDAQ: MSFT) made a bold promise to become carbon negative by 2030. This means it aims to remove more carbon from the atmosphere than it emits. The company is not only focusing on cleaner operations but also transforming its entire supply chain and investing in long-term carbon removal solutions.
It recently published its 2025 sustainability report, which revealed that its overall emissions increased by 23.4% from its base year. This increase largely stems from growth in its cloud and AI infrastructure. Yet, the company continues to intensify its efforts toward its climate goals.
How Microsoft Tracked and Tackled Its Carbon Footprint
- Microsoft’s total emissions in FY 2024 were approximately 15 million metric tons CO₂e.
Even though its Scope 1 and 2 emissions were reduced by 30% from 2020 levels, the real challenge lies in Scope 3 emissions. It comprised 97.29% of Microsoft’s total footprint in the same year.
These emissions come from the supply chain and product use. Key sources include construction materials like steel and concrete, business travel, product use, and logistics.
Microsoft’s Total Emissions



The company uses life cycle assessments (LCAs) to track emissions and environmental costs. This process spans design, production, usage, and end-of-life. And more importantly, transparency enables Microsoft to identify the top emission sources and target effective solutions.
The significant drop in direct emissions was due to the following three main actions:
- Investing in clean energy
- Upgrading energy efficiency,
- Using green tariffs.
Transforming the Supply Chain to Cut Scope 3 Emissions
Microsoft’s Supplier Code of Conduct says that its suppliers must use 100% carbon-free electricity by 2030. This rule pushes suppliers to aim higher, like following RE100 standards. This means it will focus on areas with strong supply chains, along with tackling local policy and financing issues.
This will further boost access to clean energy worldwide, especially in regions with weak infrastructure.
Microsoft’s Scope 3 Emissions



Adds 19 GW of Renewables in 2024
In 2024, Microsoft added 19 gigawatts (GW) of renewable energy capacity. This expansion happened across 16 countries and is the largest yet. It includes new solar and wind farms, long-term power purchase agreements (PPAs), and energy storage projects.
Notable projects include:
- A 250-megawatt solar deal in Wisconsin. This project has a $15 million fund for community environmental initiatives.
- Partnered on a 415-megawatt solar facility in Germany. At the time, it was Europe’s largest and was built on a former coal mine.
- In Ireland, the Drumlins Park wind project was the first to start commercial operations under a framework with Energia Group.
- Launched the 36-megawatt Kotun Solar Project in Poland to boost clean energy in Europe.
Additionally, Microsoft started 45 carbon-free electricity projects across 15 countries. New projects include locations in Canada, Chile, France, Japan, and Poland.
- By the end of this year, the tech giant aims to power all its operations with 100% renewable electricity.
Solar Circularity and Smart Energy Partnerships
Some areas where it’s using circular economy principles in renewable energy projects are:
- Four solar PPAs signed with Engie require all solar modules to be reused or recycled, setting a new industry benchmark for circularity.
- A separate agreement with Qcells will deliver up to 12 GW of U.S.-manufactured solar modules over eight years, strengthening domestic supply chains.
- Formed a clean energy buyers group with Google and Nucor to scale carbon-free technologies and push for supportive policies, with projects expected in 2025.
Another significant win came from low-power server states, which cut energy use by up to 35% for inactive servers. By the end of 2024, this initiative had expanded from a few thousand servers to nearly 2 million. Meanwhile, Microsoft has reduced hardware needs on its Azure platform by 1.5% since 2020 by strategically oversubscribing CPU cores for internal workloads.
Tapping into Nuclear Power to Cut Data Center Emissions
It signed its first large-scale nuclear PPA with Constellation for the Crane Clean Energy Center in Pennsylvania. This project will restart an 835-megawatt nuclear facility that has been offline since 2019. Once running, it will deliver steady, carbon-free electricity to Microsoft’s data centers.
On the logistics side, it opened its fourth LEED Platinum-certified SuperHub in North America. Built with DB Schenker, this warehouse uses rooftop solar, advanced HVAC systems, and eco-friendly stormwater management.
In transportation, Microsoft switched to renewable diesel in California and Europe. This move cut freight emissions by 50%. It also helped avoid the costs and waste of retiring old vehicles.
The company expanded its use of sustainable aviation fuel (SAF) for shipping cloud hardware by air. This effort reduced emissions by over 17,000 metric tons, which is like avoiding 40,000 barrels of oil.
Scaling Carbon Removal: 22 Million Tons and Counting
In the last fiscal year, Microsoft contracted almost 22 million metric tons of carbon removal. This amount exceeds all previous years combined. By 2030, about 2.8 million metric tons will be delivered for the company’s milestone. The rest will help Microsoft remain carbon negative in the coming years. It will also support their goal of removing all historical operational emissions by 2050.
Tracking progress toward carbon negative by 2030



This growing portfolio includes various projects. In Sweden, a 10-year deal with Stockholm Exergi will cut over 3 million metric tons of emissions. It uses bioenergy with carbon capture and storage (BECCS). This process captures carbon dioxide from sustainably sourced biomass and stores it underground.
In Brazil, it is working with re.green to plant over 10 million native tree seedlings. This project will cover 16,000 hectares in the Atlantic and Amazon forests. The agreement lasts 15 years and will remove about 3 million metric tons of carbon through natural regeneration.
Additionally, its role in advanced carbon removal technologies involves a partnership with Climeworks to support direct air capture (DAC) in Iceland since 2022. These efforts have changed from short-term purchases to long-term contracts. This shift shows Microsoft’s commitment to a strong carbon removal market.
- Microsoft (MSFT) Signs $2.6 Million Soil Carbon Credit Deal with Agoro Carbon to Meet its Net-Zero Goals
- Microsoft Inks a 4.8M Tons of Forest Carbon Credit Deal with Anew Climate
- Microsoft Buys 60,000 Soil Carbon Credits from Indigo’s Largest Carbon Crop