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    Microsoft Commitment to Environmental Sustainability

    Fact Sheet

    February 2008

    Microsoft Corp. is committed to environmental sustainability and continuously works to explore and implement new ways to preserve and improve the environment. Environmental efforts at Microsoft are focused in two key areas:

    ; Applying Microsoft technology expertise to help solve environmental challenges ; Reducing the company's environmental footprint

Applying Microsoft Expertise to Environmental Challenges

    ; Creating technology solutions. Microsoft believes that technology can significantly

    contribute to promoting environmental sustainability. The company works with customers,

    partners, governmental organizations, and nongovernmental organizations to build solutions

    that enable consumers, businesses, and governments to reduce their environmental footprints.

    ?o The Microsoft operating system Windows Vista is the company's most energy-efficient

    operating system to date. It features significant changes to power management

    infrastructure, functionality, and default settings that can reduce computer energy

    consumption. More information is available at

    http://www.microsoft.com/presspass/features/2007/mar07/03-21vistapowermgmt.mspx.

    o Together with a consortium of partners, Microsoft and the Clinton Foundation's Climate

    Initiative are developing a Web solution that enables cities to clearly understand their

    environmental footprint and to make more informed choices about how to improve

    energy efficiency and reduce carbon emissions. The Web-based software tools will be

    provided to cities free of charge and will be available in the first half of 2008.

    o In 2007 Microsoft, Google, Intel, the World Wildlife Fund, and other industry leaders

    announced the Climate Savers Computing Initiative, a commitment to purchase and

    produce computing products that meet specified power-efficiency targets. The initiative

    will also educate consumers and IT personnel about managing a computer's power usage

    and how to reduce the electrical footprint of computers.

    ?o Microsoft is a leader in the development of collaboration solutions, such as Microsoft ?? Office Live Meeting, SharePoint, and Microsoft Office Groove2007. These

    technologies enable virtual meetings, thereby reducing the need for the physical transfer

    of documents and business travel.

    o Using the familiar interface of Microsoft Office, Microsoft Dynamics? is developing an

    environmental dashboard that will enable companies to manage data about greenhouse

    gases, as well as other sustainability-related data. The dashboard will work with other

    Microsoft Dynamics business management solutions. Read more at

    http://www.microsoft.com/dynamics/environment.mspx.

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Microsoft Commitment to Environmental Sustainability Page 2

    ; Addressing e-waste. Microsoft is committed to enhancing the reusability of personal

    computers and other devices so that they are kept in use and out of the waste stream as long

    as possibleand so that they can be recycled properly when they reach the end of their

    useful life. Through the Microsoft Authorized Refurbisher (MAR) programs and by

    supporting other programs such as Digital Pipeline (DP), Microsoft helps extend the life of

    older retired computers by providing low-cost licenses for Microsoft software.

    o Information on how to contact a MAR refurbisher can be found at

    www.microsoft.com/communitymar or www.microsoft.com/oem/mar.

    o Tips for donating computer hardware can be found at

    http://www.microsoft.com/Education/TenTips.mspx.

    o The MAR program in the United States has supported more than 900 refurbishers and

    supplies over 200,000 licenses each year. In addition, Microsoft now operates the

    Community MAR program all over the world to help educational and charitable

    organizations access technology.

    o When the life of consumer electronics and their components cannot be extended,

    Microsoft supports the mandatory collection and recycling of consumer electronics

    funded by individual producers and recognizes that this will foster the creation of more

    sustainable products and waste reduction. Microsoft belongs to Electronic Recycling

    Programs where they are available and feasible for its products, and the company

    participates in voluntary recycling events throughout the world.

    ; Vendor requirements. As a global company manufacturing all over the world, Microsoft

    requires that all vendors abide by the applicable environmental laws and follow

    environmental practices that reflect the spirit of those laws.

Reducing the Company's Environmental Footprint

    Microsoft is focused on reducing the impact of its business operations on the environment. It is a leader in several areas, particularly at its headquarters in Redmond, Wash. In the Puget Sound region, Microsoft has been recognized by the Environmental Protection Agency (EPA) for its employee commuting programs, which provide environmentally sound options for more than 45,000 employees and onsite consultants who work in the region.

; Responsible building design and global operations. Microsoft invests in new technology

    to ensure that its buildings are efficient and take advantage of alternative energy

    opportunities. Through participation in the US Green Building Council LEED (Leadership in

    Energy and Environmental Design) program, Microsoft-owned newer buildings in the United

    States use 10 to 15 percent less energy than older buildings do. All new construction is being

    built to the Silver LEED standards.

    ; The Microsoft Data Center Services team closely monitors and manages current

    power consumption and the design of future data centers to maximize efficiencies.

    The company's data center in Quincy, Wash., is an example of how Microsoft is

    building for the future: Using clean, renewable hydropower from the Columbia River

    Basin as its primary energy source, the Quincy data center is designed to have a

    minimal or nonexistent carbon footprint. Microsoft has also broken ground on its San

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    Microsoft Commitment to Environmental Sustainability Page 3

    Antonio data center, which is scheduled for completion in July 2008. This data center

    will leverage the city's environmental recycled water program and wind power

    opportunities as its primary energy sources. Microsoft is also working closely with

    energy companies to research new power generation, transmission, and distribution

    technologies that will drive even greater efficiencies at the data centers.

    ; In April 2006, Microsoft dedicated a system of over 2,000 solar panels that cover

    more than 30,000 square feet of rooftop area at its campus in Mountain View, Calif.

    This system generates 480 kilowatts of power at peak capacity, enough energy to

    supply 12 percent of the campus's peak energy needs.

    ; 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 offices in

    the United Kingdom when development is complete.

    ; At the new Microsoft campus in Hyderabad, India, double-glazed windows and

    sunshades reduce reliance on air conditioning (AC), lights turn off automatically if

    offices are unoccupied for more than 10 minutes, and a reservoir recycles 36,000

    cubic meters of rainwater to irrigate the 48-acre campus and to run energy-efficient,

    water-cooled AC units.

    ; Recycling and conservation. Microsoft has an extensive recycling and conservation

    program at its corporate headquarters in Redmond, Wash., that reduces waste and conserves resources. Examples on the Redmond campus include the following:

    o Water. An advanced irrigation system saves about 11 million gallons annually. o Paper. Paper is required to contain 35 percent recycled content. Copiers default to

    double-sided copies, so less paper is used.

    o Waste. An average of 141 tons of material is recycled each month, including glass,

    plastic, aluminum, cardboard, paper, organic waste, wood pallets, and copper wire.

    Microsoft also recycles at least 50 percent of construction waste. In addition, the

    Redmond-based cafeteria kitchens direct more than 1,000 gallons of used fryer oil to a

    Seattle area bio-diesel refinery each month.

    ; Employee transit. At many of its campuses, Microsoft offers public transportation passes to its employees and onsite consultants. Microsoft also assists with ride sharing and reductions in bicycle maintenance costs. Examples include the following:

    o In the Redmond area, Microsoft has increased the commuter group to 30 percent of all

    employees. In addition to offering public transportation and ride-sharing benefits, the

    company offers lockers and showers for bikers and walkers, flexible work schedules, and

    a guaranteed ride-home program.

    o The Connector, a free Microsoft bus service available to full-time employees, transports

    employees from five residential neighborhoods to the Redmond campus. Providing a

    convenient option for commuting to work, the Connector will eliminate approximately

    800 vehicle trips and 32,200 miles of travel each day, resulting in the a reduction of

    approximately 3,800 tons of carbon emissions annually.

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    Microsoft Commitment to Environmental Sustainability Page 4

    o Microsoft has a fleet of 41 hybrid vehicles that are used for shuttle service on the

    Redmond campus.

    ; Manufacturing environmentally compliant products and packaging

    o Elimination of PVC from packaging. In 2005, Microsoft removed polyvinyl chloride

    (PVC) from product packaging and reduced the use of plastic clamshells by 70 percent.

    Based on historical product shipments, over a two-year period these measures will reduce

    PVC packaging by more than 1.6 million pounds.

    o Commitment to sustainable consumer electronics. Microsoft software and hardware

    products are designed to comply with and exceed worldwide environmental regulations.

    Microsoft does not use heavy metals such as lead and cadmium in packaging or plastics

    for any of its products, and it restricts the use of toxic substances in its hardware products.

    Microsoft is committed to eliminating PVC and brominated fire retardants from all of its

    hardware products by or before 2010.

    o Improving product packaging. Microsoft is researching ways to improve product

    packaging further by using environmentally friendly ingredients and decreasing the

    amount of disposable packaging. Through participation in the Sustainable Packaging

    Coalition, a cross-industry group of more than 100 global companies, Microsoft created

    packaging made out of recycled plastic beverage containers for the Microsoft Streets and

    Trips GPS case.

    #########

    For more information, press only:

    Rapid Response Team, Waggener Edstrom Worldwide, (503) 443-7070,

    rrt@waggeneredstrom.com

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