Microsoft’s commitment to sustainability

>>> PLEASE WELCOME SATYA NADELLA >> THANK YOU SO VERY MUCH IT’S FANTASTIC TO BE HERE TODAY THE START OF A NEW DECADE IS THE TIME TO REFLECT, SET INTENTIONS AND MOVE FORWARD WITH BOLD AMBITION OUR MISSION TO EMPOWER EVERY PERSON IN EVERY ORGANIZATION ON THE PLANET TO ACHIEVE MORE IS ENDURING IT SHAPES WHAT WE BUILD, HOW WE BUILD IT IT DEFINES HOW WE VIEW THE ROLE OF TECHNOLOGY IN OUR SOCIETY AND IN THE WORLD AND AS WE CONSIDER THE OPPORTUNITIES AND THE CHALLENGES FACING US TODAY, AS WE WORK TO EMPOWER THE 7 BILLION PEOPLE ON THE PLANET, WE MUST RECOMMIT TO THIS SENSE OF PURPOSE AND MISSION NOT ONLY RECOMMIT, BUT REDEFINE WHAT ACHIEVE MORE MEANS TO THE WORLD COLIN MAYER, DEFINES THE PURPOSE OF CORPORATION IS TO PRODUCE PROFITABLE SOLUTIONS TO THE PROBLEMS OF PEOPLE AND PLANET FOR US AT MICROSOFT, THIS STARTS WITH THE NEED TO DRIVE BROAD ECONOMIC GROWTH WITH WHAT WE CALL TECH INTENSITY THE OPPORTUNITY HAS NEVER BEEN GREATER COMPUTING TODAY HAS BEEN EMBEDDED IN THE WORLD FROM PRECISION MEDICATION TO PRECISION AGRICULTURE TO PERSONALIZE D COMMERCE AND EDUCATION AND MACHINERY CONNECTED TO HOMES BUT THAT’S NOT SUFFICIENT IF THE NEXT FACE OF BROAD ECONOMIC GROWTH IS GOING TO COME FROM TECHNOLOGY, WE MUST WORK TO ENSURE THAT EVERY PERSON IN EVERY ORGANIZATION, IN EVERY INDUSTRY, IN EVERY COMMUNITY AND IN EVERY COUNTRY CAN BENEFIT FROM THIS GROWTH AND WHILE TECH INTENSITY CAN BE A DRIVER OF ECONOMIC GROWTH, THE SOLUTION IS NOT SIMPLY TO BUILD MORE TECHNOLOGY FOR TECHNOLOGY SAKE, IT’S TO ENSURE THAT TECHNOLOGY IS INCLUSIVE, TRUSTED IN CREATING A SUSTAINABLE WORLD IN OTHER WORDS, THAT IT HELPS PEOPLE IN ORGANIZATIONS TRULY ACHIEVE MORE BECAUSE IF THE LAST DECADE HAS TAUGHT US ANYTHING IS THAT TECHNOLOGY BUILT WITHOUT THESE PRINCIPLES DOES FAR MORE HARM THAN GOOD AND AS CORPORATIONS THAT OUR PURPOSE AND ACTIONS MUST ABOUT LINED TO HELP SOLVE THE WORLD’S PROBLEMS NOT CREATE NEW ONES THAT’S WHY WE MUST DEMOCRATIZE ACCESS TO THE LATEST TECHNOLOGY SO IT’S A WAY TO BOTH THE FORTUNE 500 AND THE CORNER STORE THAT’S WHY WE MUST BUILD SOLUTIONS THAT EMPOWER EVERY INDIVIDUAL, INCLUDING THE 1 BILLION PEOPLE WITH DISABILITIES THAT’S WHY WE MUST ACCRUE PEOPLE TODAY WITH THE SKILLS OF THE JOBS OF TOMORROW AND IT’S ALSO WHY WE MUST ASK RESPONSIBLY ASKING NOT WHAT COMPUTERS CAN DO, BUT WHAT COMPUTERS SHOULD DO AND WHY WE PROTECT CYBERTHREATS FROM THOSE MOST VULNERABLE AND WHY WE BELIEVE HUMAN PRIVACY IS A FUNDAMENTAL RIGHT WHICH IS ALSO WHY WE BEGIN TO OFFSET THE DAMAGING EFFECTS OF CLIMATE CHANGE THAT’S WHAT WE’RE HERE TO TALK ABOUT TODAY THE SCIENTIFIC IS CLEAR THE WORLD IS CONFRONTED WITH AN URGENT CARBON CRISIS IF WE DON’T CURB EMISSIONS AND TEMPERATURES CLIMB, SCIENCE TELLS US THE RESULTS WILL BE DEVASTATING EACH OF US NEEDS TO TAKE ACTION AND THAT INCLUDES BUSINESSES

NO ONE COMPANY CAN SOLVE THIS MACRO CHALLENGE BUT AS A GLOBAL TECHNOLOGY COMPANY, WE HAVE A PARTICULAR RESPONSIBILITY TO DO OUR PART THAT’S WHY TODAY, WE’RE ANNOUNCING AN AMBITIOUS NEW PLAN TO HELP ADDRESS THE SUSTAINABILITY OF OUR PLANET TODAY, WE’RE MAKING THE COMMITMENT THAT BY 2030 MICROSOFT WILL BE CARBON NEGATIVE NOT JUST ACROSS OUR DIRECT ADMISSIONS, BUT ACROSS OUR SUPPLY CHAIN, TOO WE MUST TAKE RESPONSIBILITY TO ADDRESS THE CARBON FOOTPRINT OF OUR OWN TECHNOLOGY AND COMPANY, BUT WE WILL ALSO GO BEYOND THAT BY 2050, WE WILL REMOVE FROM THE ENVIRONMENT ALL OF THE CARBON WE HAVE EADMITTED BY ELECTRIC CONSUMPTION SINCE OUR COMPANY’S FOUNDING IN 1975 SOLVING THE CARBON PROBLEM WILL REQUIRE NEW TECHNOLOGY SO, TODAY, WE’RE ALSO ANNOUNCING A NEW $1 BILLION CLIMATE INNOVATION FUND TO ACCELERATE THE DEVELOPMENT OF CARBON REDUCTION AND REMOVAL TECHNOLOGIES WE KNOW THAT OUR MOST IMPORTANT CONTRIBUTION WILL COME NOT JUST FROM OUR ACTIONS, BUT FROM HOW WE EMPOWER OUR CUSTOMERS AROUND THE WORLD DIGITAL TECHNOLOGY WILL PLAY A CRUCIAL ROLE IN TACKLING THESE ISSUES, AND WE WILL WORK TO DEVELOP AND DEPLOY TECHNOLOGY THAT HELPS OUR CUSTOMERS, FROM ALL SECTORS REDUCE THEIR OWN CARBON FOOTPRINT THIS IS THE DECADE FOR URGENT ACTION FOR MICROSOFT AND FOR ALL OF US TO TAKE BOLD STEPS FORWARD TO ADDRESS OUR MOST PRESSING CHALLENGES WE HOPE YOU WILL JOAN US ON THIS JOURNEY BECAUSE EACH OF US MUST COMMIT TO DO MORE IN ORDER FOR US TO COLLECTIVELY ACHIEVE MORE THANK YOU ALL VERY MUCH WITH THAT, I’LL HAND IT OVER TO BRAD AND THEN AMY TO SHARE MORE THANK YOU >>> GOOD MORNING THANK YOU ALL FOR JOINING US THANKS TO EVERYBODY WHO IS WATCHING AROUND THE WORLD, WHO WILL WATCH THIS REPLAY LATER FOR MICROSOFT, TODAY IS A SPECIAL DAY IT’S A SPECIAL DAY BECAUSE IT’S AN IMPORTANT DAY WE ARE MAKING THE TYPES OF COMMITMENTS THAT NO COMPANY HAS MADE BEFORE BUT THEY ARE THE TYPES OF COMMITMENTS THAT MANY COMPANIES, WE BELIEVE, WILL WANT TO MAKE IN THE YEARS AHEAD AND PART OF OUR JOB, AS SATYA MENTIONED, IS TO DO THIS NOT ONLY FOR OURSELVES, BUT TO WORK WITH OUR CUSTOMER AND SUPPLIERS TO HELP THEM DO THIS AS WELL TODAY HAS BEEN A DAY THAT LITERALLY HAS BEEN MONTHS IN THE MAKING BECAUSE IT’S ONE THING TO HAVE A BOLD GOAL IT’S ANOTHER THING TO HAVE A DETAILED PLAN TO ACHIEVE IT AND, OF COURSE, AS ALWAYS, YOU CAN’T SOLVE A PROBLEM UNLESS YOU FIRST UNDERSTAND IT SO, ONE OF THE THINGS I WANTED TO START WITH IS SOME OF WHAT HAS REALLY RESONATED WITH US IN TERMS OF AN UNDERING OF THE WORLD’S CARBON PROBLEM IF YOU THINK ABOUT HUMAN HISTORY, WE ARE THE BENEFICIARIES OF NOT JUST DECADES, BUT ALMOST THREE CENTURIES OF UNPARALLELED ECONOMIC GROWTH SINCE THE 1950s, THERE HAS BEEN STEADY PROGRESS IN IMPROVIE ING PR PROSPERITY IN GROWING GDP IN A CAPITAL BASIS AROUND THE WORLD YOU SEE THIS IN THIS SLIDE EVERY STEP OF THE WAY, THE ADVANCES IN HUMAN PROSPERITY HAVE REQUIRED THE USE OF MORE ENERGY YOU SEE THAT IN THIS SECOND LINE BUT THESE TWO LINES HAVE BEEN INTERTWINED WITH A THIRD ENERGY HAS BEEN CONNECTED WITH THE CONSTANT GROWTH IN THE EMISSION OF CARBON DYKES CARBON DIOXIDE I THINK AS WE THINK ABOUT THE FUTURE WHAT WE ALL NEED TO INTERNALIZE IS THIS, WE NEED TO CONTINUE TO ADVANCE HUMAN PROSPERITY WE WON’T NEED CONTINUE TO GENERATE AND USE MORE ENERGY, BUT WE NEED TO CUT THE CORD WITH CARBON AND WE NEED TO LOOK AT THIS NOT ONLY WITH AN EYE TOWARDS THE

FUTURE, BUT WITH WITHIN AN APPRECIATION OF WHAT IT MEANS FOR EVERY PART OF THE PLANET BECAUSE WE ALL KNOW WE LIVE IN A WORLD WHERE PROSPERITY IS NOT DISTRIBUTED EQUALLY SOME COUNTRIES HAVE BENEFITED FROM THE ALMOST THREE CENTURIES OF THE INDUSTRIAL REVOLUTION AND OTHER COUNTRIES ARE EMERGING AND CATCHING UP WHERE THERE ARE COUNTRIES THAT HAVE LESS PROSPERITY TODAY WHERE THEY USE LESS ENERGY, WHERE THIS CORRELATION IS SO CLEAR, WE NEED ESPECIALLY TO BE MINDFUL OF THE NEED TO HELP THEM GROW THEIR ENERGY USE, WHILE WE ALL WORK TOGETHER TO ADDRESS CARBON ISSUES WHY IS THE CARBON ISSUE SO IMPORTANT? WELL, I THINK WE’VE ALL HAD THE CHANCE TO LEARN FROM THE RECENT STUDIES THAT AS SATYA SAID HAVE REALLY MADE THE SCIENTIFIC CONSENSUS CLEAR TEMPERATURES ON THE PLANET HAVE BEEN RISING SINCE THE DAWN OF THE INDUSTRIAL REVOLUTION AND THOSE INCREASES IN TEMPERATURES HAVE CLEARLY CORRELATED WITH CARBON DIOXIDE EMISSIONS AND IF WE DON’T ADDRESS THIS PROBLEM WITH THE URGENCY THAT’S REQUIRED, THIS LITERALLY IS AN ISSUE IT IS A PROBLEM THAT WILL HAVE CATASTROPHIC CONSEQUENCES FOR EVERY SINGLE CORNER OF THE PLANET ONE OF THE THINGS WE’VE LEARNED IS IT’S NOT JUST ABOUT UNDERSTANDING CARBON SCIENCE IT’S ALSO ABOUT APPRECIATING WHAT WE CALL CARBON MATH THERE’S A FEW NUMBERS THAT ARE REALLY IMPORTANT CERTAINLY, NUMBERS THAT I’VE HAD THE OPPORTUNITY TO LEARN AND THINK A LOT MORE ABOUT IN THE LAST FEW MONTHS THE FIRST NUMBER IS THIS 2,000 IN THIS CASE, 2,000 YEARS WHEN CARBON IS EMITTED INTO THE ATMOSPHERE, IT ACTUALLY PERSISTS THERE FOR 2,000 OR MORE YEARS JUST THINK ABOUT HOW THAT IS SO DIFFERENT FROM ALMOST EVERYTHING ELSE WE DEAL WITH EVERY DAY IF WE HAVE A TOUGH QUARTER, WE CAN BOUNCE BACK THE NEXT QUARTER BUT IF YOU THINK ABOUT THE FIRST CARBON MOLECULES THAT WERE EMITTED IN ENGLAND’S MIDLANDS WHEN THE STEAM ENGINE WAS INVENTED IN THE 1750s, THOSE ARE GOING TO BE HANGING AROUND FOR 17 MORE CENTURIES, UNLESS WE FIND A WAY TO DO SOMETHING NEW THE SECOND NUMBER TO THINK ABOUT IS THIS 2 TRILLION 2 TRILLION METRIC TONS OF CARBON HAVE BEEN EMITTED SINCE THE 1750s AND THE THIRD NUMBER IS THIS ONE, MORE THAN 50 BILLION EVERY YEAR, THIS YEAR, HUMANITY WILL EMIT MORE THAN 50 BILLION METRIC TONS OF GREENHOUSE GASES IT IS A PROBLEM OF ENORMOUS SCALE AND EXTRAORDINARY LONGEVITY AND EFFECT IF WE’RE GOING TO MANAGE THIS EFFECTIVELY, WE EACH NEED TO DO OUR PART EVERY INDIVIDUAL EVERY FAMILY EVERY COMPANY, EVERY COUNTRY AND HERE, TOO, THERE ARE SOME IMPORTANT DIMENSIONS TO THIS CARBON MATH BECAUSE AS IT TURNS OUT, CARBON EMISSIONS BASICALLY FALL INTO THREE BUCKET IT ETS FOR ALL OF THREE SCOPES THAT’S THE TERM THAT IS USED THE FIRST IS SCOPE 1 THESE ARE EMISSIONS THAT WE ALL HAVE DIRECTLY IF WE DRIVE A CAR THAT HAS GASOLINE IN IT, IT’S THE CARBON THAT COMES OUT OF THE EXHAUST PIPE IF WE HAVE A DIESEL GENERATOR, WHEN THAT CARBON IS EMITTED THAT’S PART OF OUR SCOPE 1 EMISSION FOR BUSINESS, IT’S THE SAME THING, WHEN WE SEE OUR TRUCKS, OUR BUSES, OUR CONNECTORS DRIVING AROUND, THOSE ARE SCOPE 1 EMISSIONS THE NEXT ARE SCOPE 2 THESE ARE ALMOST ALWAYS LARGER THAN SCOPE 1 THIS IS THE CARBON THAT IS EMITTED TO CREATE THE ELECTRICITY THAT WE CONSUME SO AS YOU GET ELECTRICITY AT HOME FROM A POWER PLANT THAT IS USE FOSSIL FUELS, THAT CARBON IS PART OF YOUR SCOPE 2 FOR A BUSINESS, THE SAME THING IS TRUE AROUND THE WORLD AND THEN THERE’S SCOPE 3 THIS IS THE BROADEST BY FAR IT’S REALLY THE SUPPLY CHAIN ONE OF THE BIG THINGS IS CEMENT WHEN OUR NEW BUILDINGS ARE BEING BUILT AND THE CONCRETE IS BEING POURED IT COMES FROM CEMENT AND WHEN CEMENT IS CREATED, CARBON IS EMITTED THE SAME THING IS TRUE OF STEEL THE SAME THING IS TRUE FOR THE ELECTRICAL COMPONENTS THAT GO INTO MICROSOFT’S PRODUCTS THE SAME THING IS TRUE FOR THE BEEF THAT WE CONSUME

AND THE GREENHOUSE GASES THAT ARE EMITTED TO RAISE THOSE CATTLE BUT IT’S NOT JUST THE SUPPLY CHAIN THE OTHER PART, THE OTHER SIDE OF IT IS WHAT PEOPLE SOMETIMES CALL THE VALUE CHAIN THIS IS THE CARBON THAT IS EMITTED WHEN PEOPLE USE YOUR PRODUCTS WE LOVE XBOXES, BUT WE ALL KNOW THAT AN XBOX WORKS ONLY WHEN IT’S PLUGGED IN, AND IT IS USING ELECTRICITY SO WHEN OUR CUSTOMERS ARE RUNNING THEIR XBOX AND IT IS USING ELECTRICITY, WHEN THAT ELECTRICITY IS GENERATED BY CREATING CARBON EMISSIONS, THAT, TOO, IS PART OF OUR SCOPE 3 WE CAN’T SOLVE THIS PROBLEM EFFECTIVELY UNLESS WE ACT, AND FRANKLY, EVERY BUSINESS ACTS TO THINK ABOUT SCOPE 1 AND SCOPE 2 AND SCOPE 3 THE OTHER THING THAT IS REALLY IMPORTANT WHEN IT COMES TO CARBON MATH, IS WHAT WE CALL, WHAT SCIENTISTS CALL NET ZERO WHAT IS NET ZERO? IT MEANS THAT ONE REMOVES FROM THE ATMOSPHERE OR THE ENVIRONMENT AS MUCH CARBON AS WE EMIT WE’RE DEFINING NET ZERO TO INCLUDE ALL THREE SCOPES WHICH IS ONE OF THE REAL INDICATORS OF THE BREADTH OF OUR AMBITION BUT ONE OF THE INTERESTING THINGS THAT WE’VE REALLY THOUGHT ABOUT IS THAT NET ZERO IS ACTUALLY NOT NET NEUTRAL OR CARBON NEUTRAL YOU HEAR A LOT OF PEOPLE TALK ABOUT BEING CARBON NEUTRAL, AS WE HAVE AT MICROSOFT, SINCE 2012 BUT SOMETHING COUNTS TOWARDS NEUTRALITY, NOT ONLY IF IT REMOVING A CARBON EMISSION, BUT IF IT’S AVOIDING IT WHAT DOES IT MEAN TO AVOID IT? WELL, AS I’VE DESCRIBED IN SOME OF OUR INTERNAL MEETINGS, IF I GO TO SATYA AND SAY, SATYA, I WILL PAY YOU MONEY NOT TO CUT DOWN THE TREES IN YOUR FRONT YARD, THAT COUNTS TOWARDS NET NEUTRAL BUT WHAT HAVE I REALLY PAID SATYA TO DO? I PAID HIM TO DO NOTHING NOW, IT’S A GOOD NOTHING WE WANT PEOPLE WHO HAVE TREES NOT TO CUT THEM DOWN BUT IF THERE’S ONE THING THAT IS CLEAR, IT IS THIS THE WORLD WILL SOLVE THIS PROBLEM ONLY IF WE DO SOMETHING, NOTHING DOES NOT GET US CLOSER TO THE GOAL AND ONCE WE UNDERSTAND THAT, WE APPRECIATE THAT WHEN IT COMES TO CARBON, NEUTRALITY IS NOT ENOUGH WE HAVE TO GET OURSELVES TO NET ZERO WE ALSO HAVE TO UNDERSTAND WHAT IT MEANS FOR EACH AND EVERY BUSINESS THAT’S WHY WE’VE BEEN DOING A LOT OF WORK TO MEASURE AND WE’RE SHARING WITH ALL OF YOU AND THE WORLD OUR NUMBERS TODAY, OUR SCOPE 1 EMISSIONS ARE PRETTY SMALL ABOUT 100,000 METRIC TONS PER YEAR OUR SCOPE 2 EMISSIONS, REALLY FOR THE ELECTRICITY, FOR THE DATA CENTERS, OUR BUILDINGS ARE MUCH HIGHER 4 MILLION METRIC TONS PER YEAR AND LIKE MOST BUSINESSES ARE SCOPE 3 EMISSIONS, 12 MILLION METRIC TONS ARE THE HIGHEST OF ALL SO MICROSOFT TODAY IS RESPONSIBLE FOR ABOUT 16 MILLION METRIC TONS OF EMISSIONS ACROSS ALL THREE SCOPES WHAT WE ARE SAYING, WHAT NO COMPANY HAS SAID BEFORE, IS THAT WE’RE GOING TO TAKE THIS NUMBER OF 16 MILLION, AND ON A NET BASIS, BY 2030, WE WILL GET IT BELOW ZERO SO THAT MEANS THAT WE’RE GOING TO BE REDUCING OUR EMISSIONS AND THEN REMOVING FROM THE ENVIRONMENT MORE CARBON THAN WE’RE EMITTING AND IN SOME WAYS I THINK THE SECOND THING THAT WE’RE SAYING IS EVEN BIGGER AND BOLDER AND MORE IMPORTANT STILL, SATYA REFERRED TO IT EARLIER BECAUSE THIS CARBON PERSISTS FOR SO LONG, WE, IN EFFECT, ARE DOING THE EQUIVALENT OF GOING BACK IN TIME BETWEEN 2020 AND 2050, AS WE GET TO NET NEGATIVE, WE WILL KEEP GOING AND WE WILL REMOVE FROM THE ENVIRONMENT ALL OF THE HISTORICAL EMISSIONS THAT MICROSOFT HAS EITHER EMITTED DIRECTLY OR FOR ITS ELECTRICAL USE SINCE THE COMPANY WAS FOUNDED IN 1975 THAT’S THE KIND OF PROGRESS THE WORLD REALLY NEEDS THERE WILL UNDOUBTEDLY BE PEOPLE AROUND THE WORLD WHO WILL LISTEN

TO THIS AND SAY THIS SOUNDS GOOD YOU CAN REALLY DO IT? YES, WE CAN WE HAVE BEEN WORKING FOR MONTHS ON A DETAILED PLAN AND WE’RE GOING TO WALK YOU THROUGH IT WE’RE SHARING IT PUBLICLY WITH THE BLOG IT REALLY IS BASED ON SEVEN PRINCIPLES OR PIECES AND WE’LL SPEND A LITTLE BIT OF TIME AND AMY AND LUCAS CHAPEL WILL AS WELL, SO YOU CAN SEE THE FIRST SEVEN THE FIRST WE ALREADY TALKED ABOUT THAT WAS GROUNDING OURSELVES IN SCIENCE AND MATH SO WHEN WE GET TO THE ACTION THAT WE NEED TO TAKE, IT REALLY IS ALL ABOUT FIRST THEN ACCEPTING RESPONSIBILITY FOR OUR OWN CARBON FOOTPRINT WE’RE GOING TO NEED TO REDUCE OUR EMISSIONS AS A COMPANY BETWEEN NOW AND 2030 ACROSS ALL THREE SCOPES SO, OUR FIRST GOAL IS REALLY TO DRIVE DOWN OUR SCOPE 1 AND 2 EMISSIONS TO NEAR ZERO BY THE MIDDLE OF THIS DECADE AND WE HAVE CLEAR PLANS TO DO THAT IT REALLY THEN ALSO INVOLVES A CLEAR PLAN AROUND SCOPE 3 AS WELL WHEN IT COMES TO SCOPES ONE AND TWO, THE FIRST THING WE’RE GOING TO DO, IN MANY WAYS, ONE OF THE BIGGEST THINGS WE’RE GOING TO ACHIEVE IS WE WILL ENSURE THAT BY THE YEAR 2025, WE WILL HAVE POWER PURCHASE AGREEMENTS IN PLACE FOR 100% OF THE RENEWABLE ENERGY THAT WE NEED FOR ALL OF MICROSOFT’S DATA CENTERS, OUR BUILDINGS AND OUR CAMPUSES WORLDWIDE WE WILL BE 100% GREEN TECH COMPANY WE’LL KEEP WORKING BECAUSE IT MAY TAKE A DECADE FOR THE TECHNOLOGY TO AMPLIFY OUR CAMPUS VEHICLE FLEETS, BUT THAT’S WHAT WE’RE GOING TO DO AND ALREADY, JUST ACROSS THE ROAD IN NORTHERN CALIFORNIA, WE’RE WELL ON OUR WAY, THANKS TO WORK ACROSS THE COMPANY, TO BUILD CAMPUSES TO IMPROVE OUR CAMPUSES IN SILICON VALLEY AND PUGET SOUND SO THEY QUALIFY FOR ZERO CARBON CERTIFICATION SO THAT IS HOW WE’LL GET OUR SCOPES 1 AND 2 DOWN TO NEAR ZERO NOW, SCOPE 3, IN SOME WAYS, BECAUSE THE NUMBER IS BIGGER, BECAUSE IT AFFECTS SO MANY THINGS ACTUALLY REQUIRES THAT WE BE EVEN MORE INNOVATIVE AND IN SOME RESPECTS EVEN MORE AMBITIOUS SO WE’RE REALLY FOCUSED ON TWO THINGS THE FIRST IS WE’RE TAKING OUR INTERNAL CARBON TAX AND WE’RE EXPANDING IT WHAT’S REALLY INTERESTING, WIFE HEARD COMPANIES SAY OH, WE HAVE AN INTERNAL CARBON FEE BUT THEY DON’T ALWAYS HAVE FEES THAT CAUSE PARTS OF THEIR BUSINESS TO PAY REAL MONEY THEY HAVE WHAT’S CALLED A SHADOW FEE THAT MEANS THEY’LL TELL A PARTICULAR PART OF THE BUSINESS WE’VE CALCULATED HOW MUCH CARBON YOU’RE EMITTING AND AT THIS PARTICULAR PRICE THIS IS WHAT IT WILL COST THEY JUST TELL PEOPLE IT, BUT THEY DON’T ACTUALLY MAKE PEOPLE PAY FOR IT MICROSOFT HAS BEEN DIFFERENT, WE HAVE HAD A REAL CARBON FEE IN PLACE SINCE 2018, FOR SCOPE 1 AND SCOPE 2 WE RAISED THAT FEE TO $15 MILLION A METRIC TON IT MEANS ALREADY THIS YEAR, DOESN’T MATTER WHAT PART OF THE COMPANY YOU WORK IN THAT RAISES REVENUE, AMY HERDES OUR MINISTER OF FINANCE MAKES SURE THAT MONEY IS PAID AND THAT MONEY IS USED THEN TO REDUCE OUR CARBON EMISSIONS SO WHAT WE’RE SAYING TODAY, THAT EFFECTIVE JULY 1, WE’RE GOING TO EXPAND THIS, SO THAT IT APPLIES TO ALL OF OUR SCOPE 3 EMISSIONS AS WELL WE’RE GOING TO START PHASING IT IN AT A LOWER PRICE AND THEN BE PROGRESSIVELY RAISING THE PRICE UNTIL IT GETS UP TO $15 PER METRIC TON THAT IS TWO REALLY IMPORTANT THINGS FIRST, IT GIVES US MORE MONEY TO INVEST TO MAKE THESE IMPROVEMENTS BUT IN SOME WAYS EVEN MORE IMPORTANT IT CREATES INCENTIVES FOR EVERY BUSINESS TO THINK ABOUT HOW IT CAN REDUCE ITS CARBON EMISSIONS NOT ONLY FOR ITSELF, BUT FOR ITS SUPPLY CHAIN AND ITS VALUE CHAIN IT CLAET CREATES AN INCENTIVE, EXAMPLE, FOR EACH BUSINESS GROUP THAT PRODUCES HARDWARE TO THINK ABOUT HOW IT CAN MAKE ITS HARDWARE MORE ENERGY EFFICIENT BECAUSE IT THERE DRIVE DOWN COSTS THE SECOND THING WE’RE GOING TO DO IS USE AN APPROACH THAT HAS BEEN VERY IMPACTFUL IN OTHER AREAS, AND THAT IS, QUOTE, OUR

PROCUREMENT PROCESSES TO WORK WITH OUR SUPPLIERS I BET MANY OF YOU WILL REMEMBER THAT OVER THE LAST FEW YEARS WE ACTUALLY HAD AN IMPACT WHEN WE SAID WE WOULD REQUIRE OUR SUPPLIERS TO HAVE PAID TIME OFF FOR PEOPLE WORKING ON MICROSOFT MATTERS WE WOULD REQUIRE OUR SUPPLIERS TO HAVE PARENTAL LEAVE WE’VE HONED CERTAIN PROCESSES THAT HELPS US WORK WITH SUPPLIERS AND WE WILL NOW BRING THIS TO THE SUSTAINABILITY IN CARBON ISSUE AS WELL SO, BY JULY OF 2021, WE WILL HAVE NEW PROCESSES AND TOOLS, BOTH TO ENABLE OUR SUPPLIERS TO ACCURATELY MEASURE AND REPORT ON THEIR EMISSIONS, AND TO INCENTIVIZE THEM TO MAKE CHANGES AS WELL AND THEN THE LAST PART OF BEING CARBON NEGATIVE ACTUALLY REQUIRES THAT WE DO WORK TO REMOVE CARBON AND WE HAVE A VARIETY OF WELL-THOUGHT OUT APPROACHES TO PURSUE THIS IT WILL START WITH MORE NATURE-BASED APPROACHES BECAUSE THAT’S WHAT IS GENERALLY AVAILABLE AND AFFORDABLE TODAY THAT INVOLVES SOMETIMES PLANTING TREES BUT IT ONLY REALLY IS IMPACTFUL IF YOU PLANT TREES THAT SOMEONE ELSE WASN’T ALREADY GOING TO PLANT IF YOU PLANT TREES THAT NOBODY IS GOING TO CUT DOWN IF YOU PLANT TREES WITH AN EYE TO USE OF DATA SCIENCE TO MAXIMIZE THE IMPACT OF REMOVING CARBON FROM THE ATMOSPHERE, AND THAT’S WHAT WE’RE GOING TO DO BUT WHAT WE’LL LOOK FORWARD TO DOING AND WHAT THE WORLD NEEDS IS KNEW TECHNOLOGY IT NEEDS TECHNOLOGY THAT DOESN’T FULLY EXIST TODAY, FOR EXAMPLE, TO REMOVE CARBON FROM THE ATMOSPHERE DIRECT AIR CAPTURED TECHNOLOGY, FOR EXAMPLE WHERE AIR LITERALLY IS RUN THROUGH A MACHINE AND THE CARBON IS REMOVED FROM IT IF YOU WANT TO SEE OUR PAST AND IF YOU WANT TO UNDERSTAND OUR FUTURE, YOU CAN SEE THIS GRAPH THIS IS MICROSOFT SINCE IT WAS FOUNDED AND YOU CAN SEE HOW OUR CARBON EMISSIONS GREW AND NOW YOU CAN SEE HOW WE WILL BE CUTTING OUR CARBON EMISSIONS WE WILL BE FOCUSED ON CARBON REMOVAL SO THAT BY 2030 WE’RE NEGATIVE THAT IS WHAT WE NEED TO DO BUT AS I MENTIONED IN SOME RESPECTS, IT WILL REQUIRE TECHNOLOGY BY 2030 THAT DOESN’T FULLY EXIST TODAY THAT’S WHY THE PURPOSE OF PUTTING OUR BALANCE SHEET TO WORK IS SO IMPORTANT SO, LET ME TURN IT OVER TO AMY TO WALK THROUGH THAT >>> GOOD MORNING, EVERYONE IT’S SUCH AN EXCITING DAY AT THIS COMPANY, I THINK, SIMPLY TO BE A PART OF THIS AND TO WORK WITH SO MANY ARE TOUSO COMMITTE FRANKLY IS THE REASON WHY SO MANY OF US GET EXCITED TO DRIVE DOWN 520 EVERY DAY SO, WHEN YOU TALK ABOUT MAKING A DIFFERENCE, AND WE SAID, WHAT’S ANOTHER THING THAT WE HAVE AS A SUCCESSFUL GLOBAL TECHNOLOGY COMPANY AND WE SAID IT’S OUR BALANCE SHEET AND WHEN WE TALK ABOUT THINGS THAT GET US INSPIRED, IT’S ABOUT SEEING TECHNOLOGY AND TECHNOLOGY AND INNOVATION SOLVE THE WORLD’S PROBLEMS SO, WE’VE COMMITTED OVER THE NEXT FEW YEARS TO INVEST $1 BILLION IN HELPING TO SOLVE THIS CHALLENGE, AS WELL AS OTHER CLIMATE CHALLENGES THAT THE WORLD FACES WE DEEPLY UNDERSTAND THIS IS JUST A FLEXION OF WHAT IS NEEDED TO SOLVE THIS PROBLEM AND WE HOPE THAT BY DOING THIS, WE’LL SET AN EXAMPLE FOR BOTH GOVERNMENTS AND OTHER COMPANIES TO INVEST ALONG WITH US TO SOLVE THIS PROBLEM WE’RE COMMITTED TO FOCUSING REALLY IN TWO WAYS FIRST, TO ACCELERATE TECHNOLOGY THAT’S ALREADY BEING TESTED AND DEVELOPED TODAY IF YOU THINK ABOUT ACCELERATION, IT MAY TAKE THE FORM OF DEBT FINANCING, OR PROJECT-BASED FINANCE TO MOVE AND ACCELERATE THESE TECHNOLOGIES TOWARD BEING READY TO BE ADOPTED ON A MORE BROAD BASIS AND TO REDUCE THE COST OF THEM THE SECOND THING IS TO INVENT NEW TECHNOLOGIES THAT BRAD MENTIONED THAT WERE SO NEEDED THAT’S WHY WE WILL TAKE THE FORM OF DEBT OR DIRECT EQUITY INVESTMENT THAT WE’LL DO AND WHEN YOU THINK ABOUT THE CRITERIA THAT WE’LL HAVE, THE FIRST, REALLY, THAT IT HAS A MEANINGFUL CLIMATE IMPACT BUT, OF COURSE, THERE ARE OTHERS MAYBE WE PARTICIPATE IN UNDERFUNDED MARKETS IT’S AN UNIQUE CAPABILITY WE HAVE AS A LONG-TERM INVESTORS TO BE ABLE TO PARTICIPATE IN MORE RISKY SCENARIOS AND POTENTIALLY WHY UNDERFUNDED MARKET EXISTS AND, OF COURSE, IT’S EVEN BETTER IF THEY’RE SHARED ALIGNMENT WHAT DO I MEAN BY SHARED ALIGNMENT? IT MEANS THE OPPORTUNITY FOR US

TO PARTICIPATE ULTIMATELY AS A CUSTOMER OF THESE TECHNOLOGIES, WHICH IS A LARGE OPPORTUNITY AS WELL AND FINALLY, YOU HEARD BRAD TALK ABOUT AN IMPORTANT CRITERIA WHICH IS CLIMATE EQUITY THE CONCEPT THAT WE CAN HELP ALSO BRIDGE THE GAP BETWEEN SOME OF THE DEVELOPING MARKETS AND THEIR OPPORTUNITIES AND WHERE FUNDING EXISTS AND MORE DEVELOPED ONES AND SO, I’M EXCITED TO LAUNCH THIS TODAY WE’RE ALSO EXCITED — BECAUSE WE’LL CONTINUE TO INVEST IN PHILANTHROPIC GRANTS FOR AI FOR EARTH AND THE COMMITMENT AS A TEAM SO, I’D LIKE TO TURN IT BACK OVER TO BRAD TO HEAR THE REST OF OUR PLANS TO ACHIEVE THIS GOAL >> THANKS, AMY YOU KNOW, ONE OF THE THINGS THAT I THINK IS SO FASCINATING ABOUT THIS ISSUE AND THE WORK THAT WE NEED TO DO IS IF YOU TAKE EVERYTHING THAT WE’VE TALKED ABOUT SO FAR, IT DOESN’T YET GET TO THE POINT THAT SATYA MADE, WHICH IS THE MOST IMPACTFUL THING WE’LL LIKELY DO, AND THAT IS WORK WITH OUR SUPPLIERS AND WITH OUR CUSTOMERS AROUND THE WORLD TO USE DATA TO USE ARTIFICIAL INTELLIGENCE, TO USE DIGITAL TECHNOLOGY TO HELP THEM MANAGE AND REDUCE THEIR CARBON FOOTPRINT TO TALK A LITTLE BIT ABOUT THAT WORK, LET ME ASK TO COME UP, LUCAS JOPPA, OUR CHIEF ENVIRONMENTAL OFFICER LUCAS >>> ALL RIGHT GOOD MORNING I’M UP HERE TO TALK ABOUT PRODUCTS AND CUSTOMERS, BUT BEFORE I DO THAT, I JUST WANT TO TAKE A QUICK MOMENT AND SAY THANK YOU THANK YOU TO EVERYBODY FOR COMING OUT THIS IS AN AMAZING OPPORTUNITY TO ENGAGE WITH ALL OF YOU, THANK YOU TO SATYA AND BRAD AND AMY FOR YOUR AMBITION AND FOR YOUR LEADERSHIP OF GETTING US WHERE WE ARE THANK YOU TO THE ENVIRONMENTAL SUSTAINABILITY TEAM AND THE ENTIRE COMMUNITY ACROSS THE COMPANY THAT’S BEEN WORKING SO HARD TO ENSURE THAT WE’RE ACTUALLY GOING TO BE ABLE TO ACHIEVE THE COMMITMENTS THAT WE’RE MAKING TODAY YOU KNOW, IT’S REALLY A CERTAIN THING FOR SURE, THAT WITHOUT EVERYBODY LEANING IN, WE WOULD NEVER HAVE BEEN GOTTEN TO WHERE WE ARE AND WE DEFINITELY WOULDN’T BE ABLE TO GET TO WHERE WE’RE GOING AND I HAVE THE PRIVILEGE INSIDE MICROSOFT TO REALLY WORK ALL DAY EVERY DAY IN ENSURING THE SUSTAINABILITY OF EARTH’S NATURAL SYSTEMS BUT THERE’S ONE LESSON ABOVE ALL THAT I’VE LEARNED WHICH IS THAT THE TOPIC OF SUSTAINABILITY FUNDAMENTALLY REQUIRES THE DEEP AND ACTIVE PARTICIPATION OF EACH AND EVERY INDIVIDUAL AND ORGANIZATION ON THE PLANET, IF WE ARE GOING TO ACHIEVE THE CLIMATE STABLE FUTURE THAT WE ALL REQUIRE AND AS A TECHNOLOGY COMPANY, THE MOST EFFICIENT EASY WAY FOR US TO DO THAT IS TO INNOVATE WITH OUR PRODUCTS AND WORK WITH OUR CUSTOMERS TO DEVELOP AND DEPLOY LOW CARBON SOLUTIONS ALL AROUND THE WORLD AND, OF COURSE, FOR MANY OF OUR CUSTOMERS, SUSTAINABILITY IS ALREADY A SIGNIFICANT FOCUS OF THEIR WORK CUSTOMERS LIKE JOHNSON CONTROLS, JOHNSON CONTROLS, A COMPANY THAT WAS FOUNDED BY THE INVENTORTHER UBIQUITOUS OF COURSE, A COMPANY FOUNDED IN THE AREAS OF HEATING AND COOLING AND A COMPANY THAT’S USE THE WIN-CORE OPERATING SYSTEM IN AZURE TO DRASTICALLY DRIVE DOWN THE CARBON CONSUMPTION IN THE BUILDING A CRITICAL PASS BECAUSE THE BUILDING SECTOR CONSUMES ALMOST 40% OF THE ENERGY OR CUSTOMERS LIKE BOTENTHAU WITH 24/7 REALTIME MATCHING OF RENEWABLE ENERGY FOR CUSTOMERS THAT WANT TO ENSURE THAT THE ENERGY OF THE ELECTRICITY CONSUMPTION THAT THEY ARE USING IS MATCHED ON THE GRID WE RENEWABLE ENERGY AND WITH RENEWABLE ENERGY PROVIDERS WHO CAN USE THOSE REAL “TIME” MARKET SIGNALS TO BETTER OPTIMIZE THE INVESTMENTS THEY’RE MAKING IN INFRASTRUCTURE OR EVEN COMPANIES LIKE SYLVIA TARA SYLVIA TARA, A SMALL STARTUP, COMBINING AI AND REMOTE SENSORY AND SATELLITE IMAGERY TO LITERALLY COUNT AND MAP EVERY TREE HERE IN THE UNITED STATES AS A START IN PART TO HELP US UNDERSTAND THE CARBON SK SEQUESTRATION POTENTIAL HERE AND AROUND THE WORLD SO WHEN WE THINK ABOUT CUSTOMERS, WE JUST TALKED ABOUT THREE THAT I THINK ARE FAIRLY

ADVANCED ON THE SUSTAINABILITY PATH OF COURSE, NOT ALL OF OUR CUSTOMERS ARE BUT REGARDLESS OF WHERE AN ORGANIZATION IS ON ITS SUSTAINABILITY JOURNEY, THERE’S ONE THING I KNOW FOR SURE, WHICH IS THAT JOURNEY WILL START, OR MUST START, WITH THE PROPER ACCOUNTING OF AN ORGANIZATION’S CARBON FOOTPRINT AND AS MORE ORGANIZATIONS CHOOSE MICROSOFT AS THE CROWD PLATFORM OF CHOICE, THE RESPONSIBILITY REALLY FALLS ON US TO PROVIDE THAT TRANSPARENCY OF OUR CUSTOMER’S CARBON EMISSIONS ASSOCIATED WITH THE USE OF OUR PRODUCTS THAT’S WHY TODAY I’M REALLY EXCITED TO ANNOUNCE THE NEW AVAILABILITY OF THE MICROSOFT SUSTAINABILITY CALCULATOR THIS IS A CALCULATOR THAT PROVIDES A DASHBOARD VIEW TO ALL OF OUR AZURE CUSTOMERS SO THAT THEY CAN BETTER UNDERSTAND THE CARBON EMISSIONS ASSOCIATED WITH THE USE OF THEIR CLOUD WORKLOADS AS WELL AS PROVIDE BETTER INSIGHT INTO THE POTENTIAL CARBON BENEFITS OF MOVING TO THE CLOUD AND SO, REALLY, THIS CALCULATOR, WHILE I THINK IT’S FANTASTIC AND I THINK IT’S GOING TO BE SUPER USEFUL FOR OUR CUSTOMERS TODAY, IT’S REALLY JUST A REPRESENTATION OF THE MANY NEW PRODUCTS AND FEATURES THAT MICROSOFT’S GOING TO BE ROLLING OUT OVER THE COMING YEAR AND YEARS ALL OF WHICH, IN PART, WILL BE FOCUSING ON PROVIDING THAT CARBON CLARITY TO OUR CUSTOMERS, AS WELL AS TOOLS TO HELP ASSIST THEM IN OPTIMIZING AND REDUCING THEIR CARBON IMPACTS AND THE REASON THAT I THINK THIS IS ALSO IMPORTANT — THE REASON I THINK IT IS SO IMPORTANT THAT MICROSOFT FOCUS ON PRODUCTS AND WORKING WITH OUR CUSTOMERS IS BECAUSE I’M ABSOLUTELY CONVINCED THAT IT IS GOING TO TAKE, ALL OF US WORKING TOGETHER, OF COURSE, BUT ALSO EMPOWERED WITH TECHNOLOGY, TO ACHIEVE THE STABLE CLIMATE THAT WE OUR CHILDREN AND GENERATIONS YET TO COME WILL ALL ULTIMATELY DEPEND UPON AND SO WITH THAT, I JUST AGAIN WANT TO SAY THANK YOU THANK YOU FOR BEING HERE THANK YOU FOR LISTENING, FOR CARING, FOR ENGAGING, AND I’LL BRING IT BACK TO BRAD THANK YOU >> SO, LET ME SHARE THE LAST PIECES OF THIS, AND OF THE PEOPLE WHO ARE RUNNING THE MONITORS CAN PUT THE NEXT SLIDE SO I KNOW WHAT COMES NEXT IT ALWAYS HELPS THERE’S THREE OTHER PIECES THE FIRST OF THESE IS OUR COMMITMENT TO TRANSPARENCY ONE OF THE THINGS THAT IS SO CLEAR IS THAT IN ORDER FOR HUMANITY TO GET THE SCIENCE AND THE MATH RIGHT, WE ACTUALLY NEED REAL TRANSPARENCY WE NEED CONSISTENT MAKEMENT BY ORGANIZATIONS AROUND THE WORLD ONE OF THE THINGS THAT WE ARE COMMITTED TO DO TODAY IS ADVANCE WHAT I WOULD CALL REAL AND EFFECTIVE TRANSPARENCY WE ARE COMMITTING THAT WE WILL PUBLISH ANNUAL REPORTS THAT WILL SHARE OUR OWN CARBON EMISSIONS THAT WE WILL CONTINUE AND ENCOURAGE THE ADOPTION OF CONSISTENT AND EFFECTIVE STANDARDS, AND WE’RE ALSO ANNOUNCING ONE OTHER THING TODAY, TODAY MICROSOFT IS SIGNING UNITED NATIONS BUSINESS AMBITION PLEDGE FOR 1.5 DEGREES CENTIGRADE, IN EFFECT THAT COMMITS US, BUT NEEDS TO COMMIT THE WORLD TO WORK TOGETHER TO SLOW AND ADDRESS THE IMPACT OF CARBON >> THE NEXT PIECE OF OUR PLAN INVOLVING USING OUR VOICE USING OUR VOICE TO PARTICIPATE IN PROCESSES AROUND THE WORLD REALLY TO ADDRESS FOUR DISTINCT CARBON ISSUES THE FIRST IS REALLY TO ADVANCE PUBLIC POLICIES THAT WILL EXPAND AND TARGET AND MAKE MORE EFFECTIVE RESEARCH BASIC RESEARCH APPLIED RESEARCH, ESPECIALLY AROUND NEW TECHNOLOGY TO REDUCE CARBON EMISSIONS AND REMOVE IT FROM THE ENVIRONMENT THE SECOND PIECE IS TO REMOVE REGULATORY BARRIERS THAT WOULD OTHERWISE SLOW THE ADOPTION OF THESE TECHNOLOGIES THE THIRD IS TO ADVANCE MARKET-BASED INCENTIVES THAT WILL PUT A PRICE ON CARBON AND THIS CAN BE DONE IN A VARIETY OF WAYS, BUT WE FEEL WE BENEFITED SO MUCH WE’VE SEEN THE IMPACT ACROSS ALL BUSINESS, AS WE’VE UNLEASHED INTERNALLY WITHIN MICROSOFT MARKET INCENTIVES AND WE THINK THIS IS SOMETHING THAT THE WORLD IS GOING TO NEED IN ONE WAY OR ANOTHER, ON A MORE GENERALIZED BASIS AND THE OTHER IS TO EMPOWER CONSUMERS WITH REAL TRANSPARENCY THERE’S AN SPAASPECT OF THIS THI THINK IS SORT OF FASCINATING THINK ABOUT WHAT IT’S LIKE TO GO TO THE GROCERY STORE BEFORE YOU BUY A PRODUCT, YOU

CAN PICK IT UP AND YOU CAN LOOK AT THE NUTRITION LABEL YOU CAN LOOK AT DATA THAT YOU UNDERSTAND BECAUSE IT’S CLEAR, IT’S SIMPLE IT’S MEASURED IN A CONSISTENT WAY AND BEFORE YOU MAKE YOUR PURCHASING DECISION, YOU CAN TAKE INTO ACCOUNT, IF YOU WANT, THE INGREDIENTS, THE CALORIES, THE NUTRIENTS IN THAT PRODUCT SHOULDN’T PEOPLE AROUND THE WORLD BE ABLE TO DO THE SAME THING WHEN THEY’RE MAKING PURCHASING DECISIONS, BASED ON AN UNDERSTANDING OF HOW MUCH CARBON WAS EMITTED TO PRODUCE THAT PRODUCT THAT THEY MIGHT CONSIDER BUYING? JUST THINK ABOUT WHAT THAT WOULD DO TO EMPOWER PEOPLE, TO EMPOWER CONSUMERS TO INCENTIVIZE BUSINESSES AROUND THE WORLD TO MOVE EVEN FASTER SO WE’LL PARTICIPATE IN ENCOURAGING THAT KIND OF APPROACH AS WELL FINALLY, ONE LAST THING, IT IS ACTUALLY THE ROCKET FUEL FOR EVERYTHING IT’S ALL OF YOU IT’S OUR EMPLOYEES WE WANT TO DO FOR SUSTAINABILITY WHAT WE’VE DONE IS A COMPANY OVER FOR THE LAST SIX YEARS FOR ACCESSIBILITY WE’VE MADE IT PART OF MICROSOFT’S CULTURE WE’VE MADE IT POSSIBLE FOR EVERY EMPLOYEE TO GET INVOLVED AND WE WILL NEED THAT HERE AS WELL IT IS REALLY REMARKABLE WHEN YOU THINK ABOUT THE BOUNDLESS OPPORTUNITIES FOR CREATIVITY AND ENERGY TO FUEL INNOVATION ACROSS THE ENTIRETY OF WHAT WE DO AS A COMPANY OF WHAT IT COULD MEAN AS WE THINK ABOUT NOT JUST WHAT WE HAVE TODAY IN SOMETHING LIKE AI FOR EARTH, BUT WHAT IT MEANS TO HAVE MICROSOFT FOR EARTH TO HAVE EVERY PRODUCT AND SERVICE INCORPORATING THE KINDS OF FEATURES THAT OUR CUSTOMERS CAN PUT TO WORK TO ADDRESS CARBON NEEDS TO THINK ABOUT WHAT IT MEANS THAT WORK EXPANDING OUR OWN WORK AS A COMPANY FROM OUR BUILDINGS AND FACILITIES TO WHAT WE EACH DO WITH EACH OTHER WE’LL BE EXPANDING AND ADDING NEW PIECES TO OUR HACKATHONS AND WE’LL BE PARTICULARLY FOCUSED ON CULMINATING THIS EACH YEAR IN ONE WEEK, TO SHOWCASE THE ADVANCES WE’RE MAKING AND IN EFFECT, TO HELP US ALL LEARN FROM EACH OTHER AND INSPIRE EACH OTHER SO, WHEN YOU PUT THESE SEVEN PIECES TOGETHER, IT’S A BOLD BET IT REALLY IS IT’S A BOLD BET TO SOLVE A BIG PROBLEM I THINK YOU NEED A BIG GOAL YOU NEED A DETAILED PLAN IT ALWAYS HELPS TO ADD TO THAT A LITTLE INSPIRATION AND ONE OF THE THINGS WE’VE THOUGHT ABOUT IS PAYS WE CAN ALL FIND INSPIRATION, NOT JUST IN WHAT MICROSOFT HAS DONE IN THE PAST, BUT WHAT HUMANITY HAS ACHIEVED BEFORE WHAT WE ARE TALKING ABOUT TODAY IS A NEW MOON SHOT I THINK THERE’S SOME INSPIRATION IN ALL OF US IN HUMANITY’S ORIGINAL MOON SHOT WHEN JOHN F. KENNEDY GAVE THE SPEECH AT RICE UNIVERSITY AND SAID THAT THE UNITED STATES WOULD SEND A MAN TO THE MOON NOT BECAUSE IT WAS EASY, BUT BECAUSE IT WAS HARD, HE WAS ACTUALLY UNDERSTATING HOW HARD THE PROBLEM WAS ON THE DAY HE GAVE THAT SPEECH, AMERICAN ASTRONAUTS HAD SPENT LESS THAN TEN HOURS IN ORBIT THEY HAD ONLY ORBITED EARTH SIX TIMES SO FOR HIM TO SAY THAT UNITED STATES WOULD SEND AN ASTRONAUT TO THE MOON BY THE END OF THAT DECADE, IT WAS AN AUDACIOUS THING AND WHEN WE GOT THERE AND WE RETURNED, ONE OF THE THINGS THAT ONE ASTRONAUT SAID IS THAT WHEN WE STARTED ON THAT EFFORT, EVERYONE WAS CONSTANTLY FOCUSED ON ONE THING THEY WERE FOCUSED ON THE MOON BUT WHAT HUMANITY LEARNED TOGETHER IS THAT WHEN WE GOT TO THE MOON IT GAVE US A NEW PERSPECTIVE ON OURSELVES THE FIRST ASTRONAUTS TO ORBIT THE MOON LOOKED BACK AT THE EARTH AND THEY SAID IT WAS A BRILLIANT JEWEL IN THE BLACK VELVET SKY AND IN A SENSE, WHEN YOU THINK ABOUT IT, THERE ARE TWO CRITICAL CONNECTIONS BETWEEN THAT MOON SHOT AND THIS ONE THE MOON SHOT FOR MICROSOFT AND THE MOON SHOT THAT THE WORLD NEEDS TO PURSUE WE WILL NEED TO DO THINGS WITH TECHNOLOGY THAT THE WORLD HASN’T YET INVENTED WE WILL NEED TO RAISE OUR AMBITION AND ACHIEVE GOALS THAT ARE BIGGER THAN ANY THAT HUMANITY HAS EVER ACHIEVED BEFORE AND IF WE DO THAT, OUR MOON SHOT WILL BUILD ON THAT ONE BECAUSE WE WILL BUILD ON WHAT

THEY LEARNED, WHAT THEY CHANGED FOR EVERYBODY ALIVE THEN, EVERYBODY WHO HAS BEEN ALIVE SINCE THE ULTIMATE MOON SHOT IS TO PRESERVE THIS PLANET AS SATYA SAID, THIS IS AN ISSUE AND IT IS A CHALLENGE SO BIG THAT NO SINGLE COMPANY, NO INDIVIDUAL, NO COUNTRY CAN SOLVE THIS BY ITSELF BUT WE’RE HERE TODAY TO SAY ONE THING ABOVE ALL ELSE, AT MICROSOFT, WE WILL DO OUR PART AND MORE THANK YOU VERY MUCH