A moonshot for the world

Brad Smith is pulling no punches when it comes to climate change. “We have problems to solve and technologies that need to be invented,” he declares. “It’s time to get to work.”

The president of Microsoft Corp spells out the situation: “The scientific consensus is clear. The world confronts an urgent carbon problem. “The carbon in our atmosphere has created a blanket of gas that traps heat and is changing the world’s climate. “Already, the planet’s temperature has risen by one degree centigrade. If we don’t curb emissions, and temperatures continue to climb, science tells us that the results will be catastrophic.” Smith is speaking after the global tech giant brought the media to its headquarters in Redmond, Washington, in January to unveil an ambitious new plan to reduce and ultimately remove its carbon footprint. It has pledged that by 2030 it will be carbon negative – and it will go even further than that. By 2050 Microsoft will remove from the environment ALL the carbon the company has emitted either directly or by electrical

“The company will use “its voice and advocacy” to support public policy that will accelerate carbon reduction and removal opportunities.”

consumption since it was founded in 1975. Smith says: “While the world will need to reach net zero, those of us who can afford to move faster and go further should do so.” He describes it as “a bold bet - a moonshot - for Microsoft”. And adds: “It will need to become a moonshot for the world.” The business has a detailed and aggressive plan to reach its targets, one that also includes its entire supply chain. It has also pledged to use its technology to help suppliers and customers around the world cut their own carbon footprints and announced a new $1billion climate innovation fund to accelerate the global development of carbon reduction, capture and removal technologies. The Fortune 500 company will also make carbon reduction “an explicit aspect” of its procurement processes. And a new annual “Environmental Sustainability Report” will detail Microsoft’s carbon impact and reduction journey.

Smith is clear that Microsoft aims to lead from the front. He says the company will use “its voice and advocacy” to support public policy that will accelerate carbon reduction and removal opportunities. And he adds: “We recognise that progress requires not just a bold goal but a detailed plan.” That plan will be partly funded by expanding Microsoft’s “internal carbon fee” so that it will charge not only its direct emissions, but those from its supply and value chains. This internal “tax” was established in 2012 to hold its business divisions financially responsible for reducing their carbon footprint. Last year it was increased to $15 per metric ton on all carbon emissions. Smith describes it as “taking a principled approach” and he also recognises the impact that people can have in driving change, saying: “We recognise that our employees will be our biggest asset in advancing innovation and we will create new opportunities to enable them to contribute to our efforts.” Microsoft says it has worked hard to be “carbon neutral” since 2012, but that is not enough. Smith says: “Our recent work has led us to conclude that this is an area where we’re far better served by humility than pride. And we believe this is true not only for ourselves, but for every business and organisation on the planet. “Like most carbon-neutral companies, Microsoft has achieved carbon neutrality primarily by investing in offsets that primarily avoid emissions instead of removing carbon that has already been emitted. That’s why we’re shifting our focus. In short, neutral is not enough to address the world’s needs. “While it is imperative that we continue to avoid emissions, and these investments remain important, we see an acute need to begin removing carbon from the atmosphere, which we believe we can help catalyse through our investments.” Microsoft’s plans include shifting to 100 per cent renewable energy by 2025. And it is looking to hit its ultimate 2050 target through “a portfolio of negative emission technologies” including afforestation and reforestation, as well as bioenergy with carbon capture and storage. Smith says: “We believe that Microsoft’s most important contribution to carbon reduction will come not from our own work alone but by helping our customers around the world reduce their carbon footprints through our learnings and with the power of data science, artificial intelligence, and digital technology. “For many customers, sustainability is already a core part of their business, while others are just beginning their work to mitigate their carbon impact. Regardless of where organisations are on their journey, we’re committed to being of help.”

Microsoft President Brad Smith, Chief Financial Officer Amy Hood and CEO Satya Nadella preparing to announce Microsoft’s plan to be carbon negative by 2030.

(Jan. 15, 2020/Photo by Brian Smale)