Microsoft is committed to environmental sustainability through reducing its operational impact, leveraging technology for positive change, and partnering with others. Key strategies include making infrastructure more sustainable by optimizing buildings and data centers, empowering employees to drive workplace changes, and researching new solutions like analyzing environmental data. Microsoft also partners with organizations to expand green IT practices and find more sustainable solutions.

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

2. Environmental Sustainability At Microsoft

3. 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

4. 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.“

5. Issues and Opportunities Energy Demands Carbon Emissions Global Impact Software Solutions

6. 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.

7. 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

8. 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

9. Sustainable Practices

10. 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

11. 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

12. 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)

13. Leverage Technology for Positive Impact

14. Reduce, Manage & Rethink for Customer Impact

15. Reduce, Manage & Rethink for Customer Impact

16. 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

17. 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

18. 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

19. Partnering for Global Impact

20. 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

21. 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

23. 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

24. www.microsoft.com/environment