Microsoft’s ESG Mission

Environmental, social, and governance (ESG) considerations have become increasingly important in the business world, and companies are being held accountable for their impact on society and the environment. Microsoft, one of the world’s largest technology companies, has taken a leadership role in addressing ESG issues and is committed to positively impacting the world.

One of the key areas where Microsoft is addressing ESG concerns is environmental sustainability. The company has set ambitious goals to reduce its carbon footprint and to transition to renewable energy sources. Microsoft has committed to being carbon negative by 2030, meaning they will remove more carbon from the atmosphere than they emit. They also have set a goal to be powered by 100% renewable energy by 2025.

Regarding social impact, Microsoft is committed to creating opportunities for all and promoting diversity, equity, and inclusion. They are investing in programs that aim to bridge the digital divide and provide digital skills to people from underprivileged communities. Microsoft is also taking steps to promote diversity, equity, and inclusion within its workforce, by setting targets and implementing programs to promote diversity and equity in the workplace.

Governance is another crucial aspect of ESG, and Microsoft is committed to maintaining high standards of corporate governance. The company has a robust corporate governance framework and is committed to transparency and accountability. Microsoft also has a comprehensive set of policies and procedures to ensure that the company operates ethically and complies with laws and regulations.

In addition to these initiatives, various organizations have recognized Microsoft’s leadership in ESG. The company has been included in the Dow Jones Sustainability Index for the past several years and was ranked as the most sustainable company in the world by Corporate Knights in 2020.

Furthermore, Microsoft has also been actively engaging with its stakeholders, including investors, customers, and employees, to understand their ESG priorities and ensure that the company addresses the concerns that matter most to them. This approach ensures that Microsoft’s ESG efforts are aligned with the needs of its stakeholders and that the company is creating value for all of its stakeholders.

Origins of ESG

ESG (Environmental, Social, and Governance) is a framework for evaluating the performance of companies and organizations concerning their impact on society and the environment. The origins of ESG can be traced back to the 1970s and 1980s when a growing number of investors and activists began to call for greater transparency and accountability from companies regarding their environmental and social impact.

The term “ESG” first emerged in the early 2000s, when a group of institutional investors in the US began using it to describe the range of non-financial factors that they believed were important to consider when evaluating companies. These investors saw that environmental and social issues were becoming increasingly important to society and believed that these issues could significantly impact the long-term financial performance of companies.

The concept of ESG gained broader acceptance in the 2010s as more and more investors began to recognize the importance of considering non-financial factors when making investment decisions. The United Nations (UN) also played a key role in promoting ESG by launching the Principles for Responsible Investment (PRI) in 2006, encouraging investors to consider ESG factors in their investment decisions.

The ESG framework has evolved, and today it is widely used by investors, companies, and organizations to evaluate and improve their performance in areas such as environmental sustainability, social responsibility, and corporate governance. ESG has become integral to the investment process, and many institutional investors have implemented ESG strategies and guidelines.

ESG originated in the 1970s and 1980s when many investors and activists called for greater transparency and accountability from companies regarding their environmental and social impact. The term “ESG” emerged in the early 2000s and became more widespread in the 2010s. The UN has helped promote the ESG framework through the Principles for Responsible Investment. Today, it is widely used by investors, companies, and organizations to evaluate and improve their performance in environmental sustainability, social responsibility, and corporate governance.

In conclusion, Microsoft has demonstrated a strong commitment to addressing ESG issues and positively impacting the world. Various organizations and stakeholders have recognized the company’s ambitious goals and initiatives in areas such as environmental sustainability, social impact, and governance. Microsoft’s approach to ESG demonstrates the company’s commitment to creating value for all its stakeholders and being a responsible corporate citizen.