UK — The Register
Microsoft faces potential vote: Shareholders curious about its plans to tackle emissions
Policy1 min read
Microsoft may face a shareholder vote on how it plans to cut its greenhouse gas emissions. Its emissions have gone up, not down, since it set climate goals in 2020.
What happened
Trillium Asset Management, an investment firm that focuses on sustainable investing, wants Microsoft to explain how it will meet its 2030 emissions targets. It is backing a shareholder proposal, called Proposal 4, to ask for this information. Shareholders will vote on it at the annual meeting on December 8.
Key numbers
- Microsoft's emissions rose from 13 million tons of CO2 equivalent in 2020 to 20 million tons in 2025.
- Without its carbon-cutting steps, Microsoft estimates emissions would be near 34 million tons.
- Emissions are now 62 percent above the 2020 baseline.
- Its cloud business made $214.4 billion in revenue in fiscal year 2026, up 27 percent from the year before.
- Scope 2 emissions (from energy the company buys) were 13 percent of the total in 2025, up from 2 percent in 2024.
Why emissions are rising
Microsoft promised in 2020 to be carbon-negative by 2030. That means removing more carbon than it gives off. It also aims to remove all the carbon it has ever emitted by 2050. Since then, demand for AI has grown fast. This has led to a big rise in new datacenters, which are large buildings full of computers. Building them creates many indirect emissions, called Scope 3.
Why it matters
The proposal says Microsoft should show its plan, be honest about the math, and explain how it will adapt. Trillium warns that missing the targets could hurt Microsoft's trust with investors and its reputation. The filing also says a clear climate plan could be useful to large investors who see climate change as a big long-term risk to the economy.
What to watch
- How shareholders vote on Proposal 4 at the December 8 meeting.
- Whether Microsoft publishes a more detailed plan to reach its 2030 goal.
- Whether emissions start to fall as datacenter building continues.
Glossary
- Trillium Asset Management
- A financial advisor that focuses on sustainable and responsible investing.
- CO2 equivalent
- A way to measure all greenhouse gases as if they were the same amount of carbon dioxide.
- Scope 3
- Indirect emissions from things a company does not directly control, such as building datacenters.
- Scope 2
- Indirect emissions from the energy a company buys, such as electricity.