Save energy. Save money. Francois Ajenstat Director, Environmental Sustainability [email_address]

Environmental Sustainability At Microsoft

The Challenge & Our Commitment Pillars of a Green Strategy Build a Sustainable Infrastructure Leveraging Technology for Positive Impact Partnering for Global Impact Summary / Action Q&A Resources Agenda

The Challenge & Our Commitment

Pillars of a Green Strategy

Build a Sustainable Infrastructure

Leveraging Technology for Positive Impact

Partnering for Global Impact

Summary / Action

Q&A

Resources

The Environment is on the Agenda "Few challenges facing America -- and the world -- are more urgent than combating climate change… And once I take office, you can be sure that the United States will once again engage vigorously in these [climate] negotiations, and … any governor who’s willing to promote clean energy will have a partner in the White House. Any company that’s willing to invest in clean energy will have an ally in Washington.“

Issues and Opportunities Energy Demands Carbon Emissions Global Impact Software Solutions

Energy Demands

Carbon Emissions

Global Impact

Software Solutions

Our Commitment At Microsoft, we are committed to software and technology innovations that help people and organizations around the world improve the environment. Our goal is to reduce the impact of our operations and products, and to be a leader in environmental responsibility.

At Microsoft, we are committed to software and technology innovations that help people and organizations around the world improve the environment. Our goal is to reduce the impact of our operations and products, and to be a leader in environmental responsibility.

How we think about the Challenge 92,000 Employees 1 Billion Customers, 425,000 Partners Reduce the 2% of energy consumed by software driven devices Use software to address the larger challenge Partner with leading environmental organizations and experts Lead by example within our own organization

92,000 Employees

1 Billion Customers,

425,000 Partners

Reduce the 2% of energy consumed by software driven devices

Use software to address the larger challenge

Partner with leading environmental organizations and experts

Lead by example within our own organization

Environmental Sustainability Partnering for Global Impact Engage with the Broader Community Drive Industry Best Practices Promote Solutions Development Leverage Technology for Positive Impact Reduce, Manage, Rethink for customer impact Green IT practices at Microsoft Research for the Future Sustainable Practices and Environmental Stewardship Act with Transparency and Compliance Build a Sustainable Infrastructure Empower Employees

Partnering for Global Impact

Engage with the Broader Community

Drive Industry Best Practices

Promote Solutions Development

Leverage Technology for Positive Impact

Reduce, Manage, Rethink for customer impact

Green IT practices at Microsoft

Research for the Future

Sustainable Practices and Environmental Stewardship

Act with Transparency and Compliance

Build a Sustainable Infrastructure

Empower Employees

Sustainable Practices

Set Targets for our Environmental Footprint Public Disclosure via Carbon Disclosure Project 550K tons in 2007 15% travel reduction goals in Fiscal 2007 Build Hardware Responsibly Compliance with EU WEEE and RoHS Directives Designs hardware and software packaging to reduce environmental impact Establish Environmental Principles Conserving, reusing, and recycling Reducing and disposing of waste Developing safe and sustainable products Making environmental stewardship part of our business relationships Continually improving our performance Demonstrating responsibility to our stakeholders Act with Transparency

Set Targets for our Environmental Footprint

Public Disclosure via Carbon Disclosure Project

550K tons in 2007

15% travel reduction goals in Fiscal 2007

Build Hardware Responsibly

Compliance with EU WEEE and RoHS Directives

Designs hardware and software packaging to reduce environmental impact

Establish Environmental Principles

Conserving, reusing, and recycling

Reducing and disposing of waste

Developing safe and sustainable products

Making environmental stewardship part of our business relationships

Continually improving our performance

Demonstrating responsibility to our stakeholders

Build Sustainable Infrastructure Minimize the Impact of our Operations Data centers consume 50% less energy than 3 years ago Digital By Choice – reduced disks shipped by 10 million units Microsoft recycles an average of 208.78 tons of material each month Maximize Use of Renewable Resources 100% renewable hydropower in Quincy Data Center Mountain View, CA campus generates 480 kilowatts from 2,288 solar panels Microsoft UK purchases 100% renewable electricity San Antonio facility leverages recycled water program and uses wind power as primary energy source Optimize Buildings and New Construction Build using LEED standards – consumes over 20% less energy Dublin data center leverages the outside air as primary source to cool facility and is projected to be 50% more efficient

Minimize the Impact of our Operations

Data centers consume 50% less energy than 3 years ago

Digital By Choice – reduced disks shipped by 10 million units

Microsoft recycles an average of 208.78 tons of material each month

Maximize Use of Renewable Resources

100% renewable hydropower in Quincy Data Center

Mountain View, CA campus generates 480 kilowatts from 2,288 solar panels

Microsoft UK purchases 100% renewable electricity

San Antonio facility leverages recycled water program and uses wind power as primary energy source

Optimize Buildings and New Construction

Build using LEED standards – consumes over 20% less energy

Dublin data center leverages the outside air as primary source to cool facility and is projected to be 50% more efficient

Empower Employees Drive Workplace Changes Compostable Reduced waste by 50% Largest Purchaser of Compostable Products Connector Bus Removed 30,000 miles of travel/day Intra-campus Hybrid Shuttles Kitchen Grease From fryers to biodiesel fuel Encourage Individuals to Drive Change Project Greenlite gave away 33,000 CFL light bulbs for free Support Employee Engagement Employee Giving Campaign Community Groups (MS Green)

Drive Workplace Changes

Compostable

Reduced waste by 50%

Largest Purchaser of Compostable Products

Connector Bus

Removed 30,000 miles of travel/day

Intra-campus Hybrid Shuttles

Kitchen Grease

From fryers to biodiesel fuel

Encourage Individuals to Drive Change

Project Greenlite gave away 33,000 CFL light bulbs for free

Support Employee Engagement

Employee Giving Campaign

Community Groups (MS Green)

Leverage Technology for Positive Impact

Reduce, Manage & Rethink for Customer Impact

Reduce, Manage & Rethink for Customer Impact

Microsoft IT Current situation ~13,000 servers - (2005) average CPU utilization for servers less than 10 percent 270,000 PCs in the Microsoft environment to leverage power management tools Redmond data centers approaching capacity 55% energy used comes from development labs Goals and Opportunities Reduce overall electricity consumption and spend Improve utilization of IT equipment and technology solutions Build more efficient products based on MSIT’s experience Reduce company carbon emissions Increase workforce productivity and satisfaction Enhance MSIT reputation, improve talent attraction and retention Anticipated Savings = 50 M KWH / year savings

Current situation

~13,000 servers - (2005) average CPU utilization for servers less than 10 percent

270,000 PCs in the Microsoft environment to leverage power management tools

Redmond data centers approaching capacity

55% energy used comes from development labs

Goals and Opportunities

Reduce overall electricity consumption and spend

Improve utilization of IT equipment and technology solutions

Build more efficient products based on MSIT’s experience

Reduce company carbon emissions

Increase workforce productivity and satisfaction

Enhance MSIT reputation, improve talent attraction and retention

Anticipated Savings = 50 M KWH / year savings

Green IT Practices at Microsoft First and Best Program Drive feedback to product groups Lab consolidation 429 labs across 82 office buildings 507,000 square feet of space Server virtualization Currently at 25% server virtualization with a goal of 50% 80% of all new servers are virtual Client computing 72% of computers are left on overnight 33% of Monitors are left on standby 24% of PCs are left on standby Focus areas for future savings Application Design Best Practices Tele-presence Enterprise & Application Data Management 27% less energy $100M hardware savings 25M KWH saved / year Vista power plan = 20% power reduction

First and Best Program

Drive feedback to product groups

Lab consolidation

429 labs across

82 office buildings

507,000 square feet of space

Server virtualization

Currently at 25% server virtualization with a goal of 50%

80% of all new servers are virtual

Client computing

72% of computers are left on overnight

33% of Monitors are left on standby

24% of PCs are left on standby

Focus areas for future savings

Application Design Best Practices

Tele-presence

Enterprise & Application Data Management

27% less energy

$100M hardware savings

25M KWH saved / year

Vista power plan = 20% power reduction

Research New Solutions eScience Understanding carbon sequestration in forests Automatic monitoring effects of changing environmental conditions on ecology species Developing tools to do fuzzy logic queries on terabytes of environmental datasets Computer modeling of forests and how they will respond to increased atmospheric CO2, logging and land-use change Sensor network that pulls environmental data from contributors across the globe Using 25 years of infra-red satellite data to derive new global fire models Data Center Genome Project Deploying sensors to profile temperature/humidity dynamics in data centers Disk Energy Achieve power savings of 45%-60% by spinning down disks in “write only” scenarios

eScience

Understanding carbon sequestration in forests

Automatic monitoring effects of changing environmental conditions on ecology species

Developing tools to do fuzzy logic queries on terabytes of environmental datasets

Computer modeling of forests and how they will respond to increased atmospheric CO2, logging and land-use change

Sensor network that pulls environmental data from contributors across the globe

Using 25 years of infra-red satellite data to derive new global fire models

Data Center Genome Project

Deploying sensors to profile temperature/humidity dynamics in data centers

Disk Energy

Achieve power savings of 45%-60% by spinning down disks in “write only” scenarios

Partnering for Global Impact

Partner with Others for Change Empower Action on World Issues Clinton Foundation Climate Initiative European Environment Agency (EEA) Imagine Cup Work Together on Solutions Desktop Power Mgmt Tools: Verdiem, 1E Facilities/Operations Mgmt: Gridlogix, Johnson Controls Expanding IT’s role: Fiat, Yello Strom

Empower Action on World Issues

Clinton Foundation Climate Initiative

European Environment Agency (EEA)

Imagine Cup

Work Together on Solutions

Desktop Power Mgmt Tools: Verdiem, 1E

Facilities/Operations Mgmt: Gridlogix, Johnson Controls

Expanding IT’s role: Fiat, Yello Strom

Summary Microsoft is committed to reducing our impact on the planet, and to helping people and businesses improve the environment We are focused on 3 primary areas: Sustainable practices and stewardship Leverage technology for positive impact Partnering for global impact 3 strategies for a sustainable IT environment: Reduce energy demands Manage energy and environmental footprint Rethink business practices There is a lot we can learn from each other – consider sharing your Environmental Sustainability story

Microsoft is committed to reducing our impact on the planet, and to helping people and businesses improve the environment

We are focused on 3 primary areas:

Sustainable practices and stewardship

Leverage technology for positive impact

Partnering for global impact

3 strategies for a sustainable IT environment:

Reduce energy demands

Manage energy and environmental footprint

Rethink business practices

There is a lot we can learn from each other – consider sharing your Environmental Sustainability story

www.microsoft.com/environment www.epeat.net www.energystar.gov www.climatesaverscomputing.org www.thegreengrid.org www.80plus.org www.1e.com www.verdiem.com EZ GPO tool : www.energystar.gov Spec Power: http://www.spec.org/power_ssj2008/results/power_ssj2008.html Energy Efficiency and Mobile Battery Life Guidance http://www.microsoft.com/whdc/system/pnppwr/mobile_bat.mspx Resources

www.microsoft.com/environment

www.epeat.net

www.energystar.gov

www.climatesaverscomputing.org

www.thegreengrid.org

www.80plus.org

www.1e.com www.verdiem.com

EZ GPO tool :

www.energystar.gov

Spec Power:

http://www.spec.org/power_ssj2008/results/power_ssj2008.html

Energy Efficiency and Mobile Battery Life Guidance

http://www.microsoft.com/whdc/system/pnppwr/mobile_bat.mspx

www.microsoft.com/environment