Microsoft Corporation

Software & IT Services

Company Summary

Microsoft Corporation is recognized for its strong commitment to ESG principles, particularly in environmental sustainability. The company achieved carbon neutrality in 2012 and aims to be net-zero by 2030, with a focus on renewable energy and sustainable operations. Microsoft’s ESG rating reflects its leadership in integrating technology with environmental goals and promoting diversity and inclusion within its workforce. However, the company has faced criticism related to its supply chain practices and the environmental impact of some of its manufacturing processes. Additionally, while Microsoft has ambitious carbon reduction goals, some argue that its dependence on cloud computing services and data centers may challenge its long-term sustainability efforts. Its ESG score balances positive advancements in energy efficiency and social impact with ongoing concerns about its overall environmental footprint. To gain a comprehensive understanding of Microsoft’s ESG practices, the latest Microsoft ESG report outlines both its achievements and areas that require attention. Microsoft has emerged as a sustainability leader in the corporate world, particularly within areas like corporate governance practices, sustainability data, human rights, and business ethics, highlighting its accountability and transparency in environmental, social, and governance (ESG) reporting, and being water positive. The company’s sustainability strategy focuses on propelling positive change with responsible actions, including renewable energy integration and innovative sustainability solutions. Despite their lack of a formal decarbonisation target, Microsoft is exploring pathways to a more sustainable future with climate change-focused goals and a commitment to manage carbon emissions and reduce waste generation across their operations and supply chain. Their dedicated Microsoft Sustainability Manager and advisory services reflect this focus, offering insights into lowering the environmental impact of Microsoft’s own operations and services. The company's ESG score highlights its responsible environmental footprint, with reduced exposure to ESG risks. Microsoft’s environmental impact strategy addresses energy consumption and water positivity, aiming to drive positive change through a more sustainable approach. To learn more about Microsoft’s ESG data and environmental sustainability goals, download the latest Microsoft ESG report from above. This report provides an overview of the company’s environmental journey, including Microsoft Cloud for Sustainability, their corporate responsibility to reduce carbon footprints, and strategies to support customers and industries in reaching sustainability targets. Microsoft technology plays a crucial role in reducing the environmental impact and promoting sustainability across its operations.

ESG Rating Overview

Sustainalytics

Overall ESG Rating :

14.2
Rating Scale
0-10Negligible10-20Low20-30Med30-40High40+Severe
Ranking
Industry Group
Software and Services60 out of 962
Universe
Global Universe1368 out of 15104

Overall ESG Rating :

89
Rating Scale
0-25Poor 25-50Satisfactory 50-75Good75-100Excellent
0100E78S89G92

Overall ESG Rating :

AA
Rating Scale
CCCB
Laggard
BBBBBA
Average
AAAAA
Leader

Microsoft is a leader among 450 companies in the software & services industry.

Temperature Rise :

1.4℃
CLIMATE SCALE
≥ 3.85°CLagging > 2°C - < 3.85°CMisaligned ≤ 2°CAligned

News from Microsoft Corporation

FAQ

What is the ESG score of Microsoft?

Microsoft holds a strong ESG score across various rating agencies. For example, MSCI rates Microsoft AA for its environmental, social, and governance practices, reflecting its leadership in sustainability, ethical business conduct, and transparency. The company is committed to reducing its environmental footprint, being carbon negative by 2030, and promoting diversity and inclusion.

Is Microsoft an ESG company?

What is Microsoft's ESG rating 2024?