Reimagining a better future together

Reimagining a better future together

While the start of a new decade typically brings hope, we quickly saw the world come to a near standstill in 2020, confronted by compounding crises: a public health and an economic crisis, persistent issues of systemic racial injustice and inequity, and the devastating...

Microsoft-2020-CSR-Report
Reimagining a better future together
2020 Microsoft Corporate Social Responsibility Report

Table of contents

03

Letter from Satya Nadella

04

Our purpose

06

Support inclusive economic opportunity

14

Protect fundamental rights

21

Commit to a sustainable future

24

Earn trust

29

Empower our employees

31

Our response to COVID-19

35

SASB Materiality Reference Index

2020 Microsoft Corporate Social Responsibility Report

Support inclusive economic opportunity Protect fundamental rights Commit to a sustainable future Earn trust Empower our employees Our response to COVID-19

3

A letter from Satya Nadella
While the start of a new decade typically brings hope, we quickly saw the world come to a near standstill in 2020, confronted by compounding crises: a public health and an economic crisis, persistent issues of systemic racial injustice and inequity, and the devastating effects of climate change. It is easy to fall prey to pessimism, or the sense that we individually or as a company can't make a difference. But helplessness is corrosive to hope, and hope plus work is what is required. Amid this disruption, what's clear is that we have a once-in-a-generation opportunity to harness digital technology to define the world we want to live in. And for that, I am optimistic.
It is in times like these that our ability to stay true to Microsoft's mission and corporate purpose is of the utmost importance. As a company, we are steadfast in our mission to empower every person and every organization on the planet to achieve more. Our mission is enduring. It drives who we are and everything we do, emphasizing our passion to empower both people and the lasting institutions they build.
As we pursue our mission, we also recognize our enormous responsibility to ensure the technology we build benefits everyone on the planet, including the planet itself. We must always use technology to help address the world's challenges, not create new ones.
But the challenges facing people and the planet are complex, and no one company, sector, or country can solve them alone. That's why we're committed to working across the public and private sectors to foster partnerships and solutions that will have lasting impact and redefine what "achieve more" means for the world. For us, it means focusing our efforts on four key commitments:
1) Support inclusive economic opportunity
2) Protect fundamental rights
3) Commit to a sustainable future
4) Earn trust
While we are proud to share our progress in these areas, we understand companies like ours that can do more, should do more. Our promise to you is this: we are, and we will.

Satya Nadella Chief Executive Officer

Support inclusive economic opportunity Protect fundamental rights Commit to a sustainable future Earn trust Empower our employees Our response to COVID-19

4

By any measure we are living through extraordinary times

Our mission--to empower every person and every organization on the planet to achieve more--has never felt more urgent. These times demand different thinking, concerted effort, and collective action in partnership with our global community.
As our CEO Satya Nadella mentioned in his opening letter to this report, we believe there are four areas where we must harness our resources if we are to continue to have a positive impact on the future of humanity and our planet.
· We must ensure that economic opportunity is inclusive--for every country, developed and developing; every community, urban and rural; every business, small and large; and every person, including the one billion plus people with disabilities.
· We unequivocally and actively support the fundamental rights of people, from defending democracy, to addressing systemic racial injustice and inequity, to protecting human rights.
· We must address climate change for a sustainable future. That's why we've set ourselves ambitious climate goals and have detailed plans to achieve them, while empowering others to use technology to create and achieve their goals.
· We are committed to building trust in technology and its use. That's why we take seriously our responsibility to earn trust. Without trust, none of our progress is possible.

Our community

163,000 employees 17 million partners 75 million customers 190 countries

In tackling these commitments, one of our strengths as a global company is our ability to drive impact at scale through our technology and in partnership with our global community.
We understand that meeting our responsibility to address these challenges and drive opportunity requires a principled approach, principles that guide us over the long term while inspiring us to take action today. Throughout this report, we'll discuss our efforts over the last fiscal year, as well as new initiatives which we have launched in the last month or so, across our company and through an array of partnerships across our community to reimagine and build a more equitable and sustainable future in these unprecedented times.
We know there is more work to do, that we must work faster, and that we cannot do it without our employees, customers, and partners. As always, we look forward to collaborating on this journey.
Learn more about our approach to corporate social responsibility and reporting
For the next 10 years, the United Nations (UN) Sustainable Development Goals (SDGs) represent a shared and universal commitment to deliver on ambitious global goals for people and the planet. Each SDG presents challenges bigger than any one organization--or even one sector of society--can accomplish alone. Microsoft believes in its shared responsibility as a business to apply the unique assets that a technology company of our scope and scale has toward the global effort needed to achieve the SDGs. We are committed to working with governments, civil society, and other companies to achieve more progress together.
Learn about Microsoft and the United Nations sustainability goals

2020 Microsoft Corporate Social Responsibility Report

Support inclusive economic opportunity Protect fundamental rights Commit to a sustainable future Earn trust Empower our employees Our response to COVID-19

5

Impact at a glance

Support inclusive economic opportunity

200% growth
Our Disability Answer Desk has answered more than a million requests for technical support for people with disabilities and seen a 200% growth in calls since the start of the pandemic, which offers great feedback from the community as well as the opportunity to support people with disabilities in working with technology in this remote set up.

17.2M people
In the three years since its launch, the Microsoft Airband Initiative has helped provide access to broadband for 2.1 million people in the US who live in previously unserved rural areas. Outside of the country, we've done the same with connectivity for 15.1 million people living in rural areas.

13M learners
Since launching our Global Skills Initiative in June, Microsoft, LinkedIn, and GitHub have collectively reachedmore than 13 million learners around the globe, a significant milestone towards our goal of reaching 25 million learners by early 2021. People from 231 countries and territories and all 50 US states have learned through the program.

$1.9 billion
In fiscal year 2020, Microsoft provided $1.9 billion in donated or discounted products and services to help 243K nonprofits globally better serve their communities.

20 new collaborations
To help close the "data divide" we will develop 20 new data collaborations by 2022, partnering with nonprofits, universities, companies and governments to collaborate around data to address major societal and business challenges.

$750 million
We've pledged $750 million in loans and grants to accelerate the construction of more affordable housing in the Puget Sound region. In total this year, we allocated over $380 million to support the preservation or creation of over 6,500 affordable housing units in the greater Seattle area.

Protect fundamental rights
29 countries
We made our Microsoft AccountGuard threat notification service available at no cost to healthcare providers on the front lines as well as human rights and humanitarian organizations. Both AccountGuard for Healthcare and AccountGuard for Human Rights Organizations will initially be available to organizations in the 29 countries where we already offer AccountGuard.

Nearly $4 billion
We have contributed nearly $4 billion with diverse-owned businesses, continuing to place Microsoft in the top 20 companies for diversity spending globally.

$42 million
We contributed $42 million to six humanitarian emergencies around the world through donations, technology, services, and employee giving. We also conducted 100+ Services Disaster Response missions in 28 countries involving over 1,000 employees providing critical technology support and solutions to nonprofit, government, and international organizations.

1 company
Microsoftwasthe only company to file a lawsuit to object to the rescission of the DACA Program in 2017, a case that went all the way to the Supreme Court.

Commit to a sustainable future

21M metric tons
This year, our top suppliers reduced their collective carbon footprint by 21 million metric tons of carbon dioxide equivalents (CO2e).

Preserve language
As part of our ongoing efforts to preserve languages around the world, in Southwestern Mexico we're engaged in capturing and translating Yucatec Maya and Querétaro Otomi, using AI to make them more accessible to people around the world.

Earn trust
7 privacy principles
We have developed 7privacy principles for governments, public health authorities, academics, employers, and industries to consider as we collectively move forward with widespread COVID-19 tracking, tracing, and testing.

2020 Microsoft Corporate Social Responsibility Report

23 malware disruptions
Since 2010, our Digital Crimes Unit has collaborated with law enforcement and other partners on 23 malware disruptions, resulting in over 500 million devices rescued from cybercriminals.

Empower our employees
750,000 hours
In fiscal year 2020, Microsoft employees donated $221 million (inclusive of company match) to nonprofits worldwide and volunteered more than 750,000 hours in the US alone.

Support inclusive economic opportunity Protect fundamental rights Commit to a sustainable future Earn trust Empower our employees Our response to COVID-19

6

Support inclusive economic opportunity

We believe that economic opportunity can and must be inclusive. That's why we invest to help individuals, organizations, communities, and countries access pathways to growth and opportunity. When each of us succeeds, we all succeed.

Support inclusive economic opportunity Protect fundamental rights Commit to a sustainable future Earn trust Empower our employees Our response to COVID-19

7

Promoting accessibility and inclusion
With more than one billion people with disabilities in the world, we believe accessibility and inclusion are essential to delivering on our mission.

Our commitments and approach
Technology can empower people to achieve more, help strengthen educational opportunities, and make the workplace more inclusive for people with disabilities. We are on a journey and continue to learn and grow as we move forward. We hope that by sharing what we've learned, other organizations can build out and accelerate their disability inclusion accessibility programs, hire great talent, and reduce the unemployment rate for people with disabilities. Our commitment to accessibility and disability inclusion is about more than the products and services we create; it extends to the culture of our workplace and the fabric of our company--from hiring people with disabilities, leaning into the principles of inclusive design to creating inclusive marketing, to building an accessible, modern workplace that empowers all employees.
2020 Microsoft Corporate Social Responsibility Report

Highlights
AI for accessibility
As part of our AI for Good Initiative, we are investing $25 million to support change makers through grants, investments of technology, and expertise to amplify the capabilities of people with disabilities. AI for Accessibility is about empowering individuals and teams who are passionate about making the world more inclusive and firmly rooted in the communities they intend to benefit. We want to invest in ideas that are developed by or with people with disabilities.
Accessibility of our products and services
We are committed to accessibility to empower every person and organization to achieve more. We work hard to design products and services that empower the more than one billion people with disabilities, promote an inclusive workplace and culture, and enable others to advance their accessibility journey. Across our products like Windows and Microsoft 365, accessibility features are embedded to help people stay connected and get work done.
Employees with disabilities
A strong and diverse workforce must also include people with disabilities. Employees with disabilities have been the catalyst of many great Microsoft innovations such as Learning Tools, Live captioning in Teams, the Xbox Adaptive Controller, Seeing AI, and many more. Disability is a strength and it is imperative that we continue to actively work to hire people with disabilities and bring their expertise into our processes, products, and culture at every level.

Disability answer desk
Our disability answer desk has answered more than a million requests for technical support for people with disabilities. We have seen a 200% growth in calls since the start of the pandemic, which offers great feedback from the community as well as opportunity to support people with disabilities in working with technology in this remote set up.
Designing inclusive AI
The Microsoft AI for Accessibility Program co-published two papers addressing the importance of disability inclusion in AI data collections: Disability, Bias, and AI Report (with AI Now Institute at NYU) and Sign Language Recognition and Translation.
Disability representation
We encourage employees to voluntarily self-identify as having a disability, and in our Global Diversity and Inclusion Report 2020, we shared for the first time known disability representation in our US employee population. Of the 46.1% of US employees in our core Microsoft business who responded to the survey by September 1, 2020, 13.2% self-identified as having a disability. This amounts to 6.1% of all US employees in our core Microsoft business having already identified as a person with a disability.

Accessibility evolution model
In 2016, we rebuilt our company-wide accessibility program with a more systematic way to measure progress and set targets. This led to the development of our accessibility evolution model, which we have been using and improving for four years. It has enabled us to track progress, understand year-over-year growth by division and function and has powered our maturity. We are now sharing this model to help other organizations accelerate their accessibility journey and explore how to grow it in a sustainable way.

Resources
Learn about our commitments to accessibility
Learn about our employees with disabilities
Learn about how grantees are making impact

Learn more

Support inclusive economic opportunity Protect fundamental rights Commit to a sustainable future Earn trust Empower our employees Our response to COVID-19

8

Closing the broadband gap
Broadband is the electricity of the 21st century, but more than18 million Americans don't have access to broadband, including 14 million who live in rural areas. 49% of the global population doesn't even have access to the internet. This leaves billions of people on the wrong side of the opportunity gap, meaning existing inequalities, poverty, and insecurity will persist and become more difficult to address.

Our commitments and approach
Through the Microsoft Airband Initiative, we seek to make affordable broadband access a reality for unserved communities around the world. The Airband Initiative also aims to help the communities we serve to digitally transform in the areas of healthcare, agriculture, education, and small business enablement or rural entrepreneurship.
2020 Microsoft Corporate Social Responsibility Report

Highlights
Eliminating the rural broadband gap in the United States
With more than18 million Americans lacking access to broadband, including 14 million who live in rural areas, we set ourselves an ambitious goal in 2017: to provide access to broadband to 3 million people in unserved rural areas of the United States by July 4, 2022. We're on track to achieve our goal, and thus far have helped provide 2.1 million people with access to broadband in previously unserved rural areas of the US, and over 8.1 million people overall.
Expanding access to broadband for communities of color
In June this year, we announced the expansion of our Airband Initiative beyond its rural focus to US cities, confronting some of the largest digital divides as part of our commitment to addressing racial inequity.
Closing the global digital divide
In 2019 we set a goal to extend internet access to 40 million unserved and underserved people around the globe by July 2022. We are concentrating our efforts in areas with significant underserved populations--Asia, Latin America, and Sub-Saharan Africa ­ that have regulatory interest in solving connectivity issues. We're well on our way toward achieving that goal and thus far have provided access to broadband to more than 16.7 million people outside the US, 15.1 million of which live in rural areas.
Our partnerships
Elimination of the broadband gap requires deployment of low-cost technology at scale. We support businesses working to increase internet and energy access and make it more affordable. Partnerships include co-investment and access to resources like technology, digital skills, and reseller programs. We also partner with local organizations to develop cost-effective solutions for the unique needs of their communities.

Technology
We help facilitate a "toolkit approach" to deliver cost-effective broadband access to rural areas which leverages a mix of technologies like TV white spaces, fixed wireless, and satellite coverage. For network providers, this technology model can reduce both the initial capital and the ongoing operating costs of broadband networks.
Keeping communities connected during the COVID-19 crisis
As global communities adapt to a world with COVID-19, access to broadband is even more critical to our lives and livelihoods than ever before. To keep rural communities without broadband access from being left behind, we're donating hotspots and wireless connectivity equipment, and expanding our digital skills offerings with COVID-19-specific digital skills offerings for rural communities. We're undertaking this work in partnership with Internet Service Providers, state and local governments, nonprofits such as the Public Library Association, the National 4-H Council, and other mission-aligned public- and private-sector entities.
Closing the gender digital divide
In August, we signed an agreement with the United States Agency for International Development (USAID) and the Women's Global Development and Prosperity Initiative to work with six Airband partners on projects serving rural areas in Columbia, Ghana, Guatemala, India, and Kenya. The goal of the partnership is to reduce the persistent gender digital divide by expanding women's use of the internet and to help provide women new employment and economic opportunities.

Resources
Learn about the Microsoft Airband Initiative
Learn about Airband partnerships
Learn about technology models

Learn more

Support inclusive economic opportunity Protect fundamental rights Commit to a sustainable future Earn trust Empower our employees Our response to COVID-19

9

Building skills for employability
We must ensure every person has access to the technology, skills, and opportunity to pursue in-demand jobs in the changing economy.

Our commitments and approach
We have a long-standing commitment to closing the skills gap. But COVID-19 has only widened this gap: accelerating digital transformation as companies race to change the way they work to respond to and recover from the pandemic. It is why we are accelerating our investments in programs and partnerships that build foundational digital skills and provide access to high-quality, inclusive computing and computer science training and education.

Highlights
Enable job seekers
This year, we will provide $20 million in cash grants to nonprofit organizations around the world that provide digital skills training for the people who need it most, including $5 million for nonprofits that provide digital and professional skills for Black and African American communities. In less than four months, the initiative has engaged more than 13 million learners.
Expand our reach with customers and partners
We're working with our customers to scale our skills commitment, including a partnership with Grab to help more than 500,000 of its drivers in Indonesia and Vietnam complete digital skills training to prepare them to succeed in a more digital economy. In partnership with UNICEF and UNHCR, we will support quality education, digital skills, and improved livelihoods for displaced and refugee youth, especially girls and young women, in up to 20 countries by 2021.

Close the computer science education gap in the US
We advocate for policies designed to expand access to K12 computer science education for all students. In the last 12 months, 28 states have adopted 42 Microsoft-supported policies. And all 50 states now allow computer science classes to satisfy a core high school graduation requirement.
Microsoft Technology Education and Literacy in Schools (TEALS) connects classroom teachers with tech-industry volunteers to create inclusive, sustainable computer science programs. TEALS is powered by more than 1,500 tech volunteers from over 650 companies. 35% of TEALS students identify as female and 33% identify as racial and ethnic minorities. 85,000 students have accessed computer science courses since TEALS inception in 2009.
Over the next five years, we will bring the TEALS Program to over 600 US high schools that serve primarily Black and African American students.

Resources
Learn about our resources for job seekers
Learn about our community skills grants for nonprofits serving Black communities

Learn more

Support inclusive economic opportunity Protect fundamental rights Commit to a sustainable future Earn trust Empower our employees Our response to COVID-19

10

Learning the skills for in-demand roles: A Global Skills Initiative

Our Global Skills Initiative has reached 13 million learners--and counting
The COVID-19 pandemic has set off job losses that exceed the scale of the Great Recession. At Microsoft, we quickly realized we are uniquely positioned to help. In June, Microsoft, LinkedIn, and GitHub launched a global skills initiative that has collectively reached more than 13 million learners around the globe, a significant milestone towards our goal of helping 25 million learners gain more digital skills for the COVID-19 economy. People from 231 countries and territories and all 50 states have tapped into the program. To further extend the reach of our offering and help groups hardest hit by job loss, we're continuing to expand our partnerships with nonprofits and local organizations around the globe, including Black and African American-led nonprofits in the United States, Goodwill, Afrika Tikkun in Africa, ReDI in Germany, ITPH Academy in the Netherlands, the Department for Education in the UK, and Singapore Government agencies. In addition to our $20 million investment, our global skills intiative includes these commitments: · Make data and analytics available to governments around the world so they can
better assess local economic needs. · Use our voice to advocate for public policy that will advance skilling opportunities
needed in the changed economy. We are committed to leveraging our range of resources to help people develop new digital skills and get back to work, secure a new job--or to maintain the job they already have.
Learn more about our Global Skills Initiative

2020 Microsoft Corporate Social Responsibility Report

Support inclusive economic opportunity Protect fundamental rights Commit to a sustainable future Earn trust Empower our employees Our response to COVID-19

11

Empowering nonprofits worldwide
Technology can enable nonprofit, humanitarian organizations and social entrepreneurs to be more productive, more innovative, and ultimately, to drive greater societal impact.

Our commitments and approach
Microsoft is committed to delivering accessible, affordable, and relevant technology solutions and services to nonprofits, humanitarian organizations, and the UN and its agencies worldwide. Through Microsoft's Tech for Social Impact, we provide Microsoft cloud technology as well as first-party sector-specific solutions to meet the unique needs of nonprofits. The Microsoft Partner ecosystem provides further innovation and scale, helping nonprofits of all sizes with sector specific solutions, implementation and migration services, and licensing support. Tech for Social Impact runs as a social investment model, where incremental revenue is reinvested in nonprofit sector innovation and social good causes, including affordable housing, skills and employability programs, and technology donations.

Highlights
Providing donated and discounted technology and services
We provided $1.9 billion in donated or discounted technology and services to 243,000 nonprofits globally--many serving on the front lines of COVID-19-- with modern, secure and scalable cloud technology like Microsoft 365 and Teams, Azure, Dynamics 365 and Power Platform, and the Common Data Model for Nonprofits. As part of Microsoft's commitment to address racial injustice and inequity, we are offering additional support to help nonprofits that work with Black and African American communities increase the impact of their mission.
Digital skills training for nonprofit employees
We provide technical training and learning pathways through the Technical Literacy Learning Pathways, the Microsoft Digital Skills Center for Nonprofits, and more learning paths so nonprofit employees can use technology to accelerate their missions--reaching over 50,000 learners to date.

Helping nonprofits digitally transform during COVID-19
As nonprofits faced remote work and fundraising challenges, we have helped nonprofits digitally transform for remote work, business continuity, virtual events and fundraising, and service delivery apps, allowing them to scale quickly in response to COVID-19 and other humanitarian crises.
Empowering social entrepreneurs
This year we launched the Microsoft Global Social Entrepreneurship Program to support social impact startups with technology, connections, and grants. The program offer qualified startups access to technology, education, customers, and grants to help them build and scale their mission-driven companies. Available in 140 countries, the program seeks to support underrepresented founders with diverse perspectives and backgrounds. We also invested in X4impact, the world's first public interest technology knowledge graph and collaboration hub. This platform aligns social entrepreneurs, grantors, technologists, and citizen developers to develop solutions for the UN Sustainable Development Goals (SDGs).

2020 Microsoft Corporate Social Responsibility Report

Resources
Learn about nonprofit offers from Microsoft
See how we are providing more cloud and tech support for nonprofits on the frontline of COVID-19
Learn more

Support inclusive economic opportunity Protect fundamental rights Commit to a sustainable future Earn trust Empower our employees Our response to COVID-19

12

Promoting more equitable access to data
We believe everyone can benefit from opening, sharing, and collaborating around data to make better decisions and improve efficiency.

Our commitments and approach
We are seeing the benefits that data sharing can bring to all organizations. From climate change to the COVID-19 pandemic, data plays a critical role in helping us understand and address major social and business challenges. But the reality is that data, and the AI services that it fuels, are increasingly concentrated in the hands of a small number of companies. So to ensure that every organization can fully realize the benefit of data, we need to build the tools and frameworks to share data across organizational boundaries in a way that is safe and secure.
To help unlock the potential of data, Microsoft's Open Data Campaign focuses on three areas: 1) adopting a principled approach to opening data; 2) committing to deeper collaborations with others to open and share data; and, 3) making data sharing easier.
Microsoft has adopted five principles that will guide our contributions and commitment to trusted data collaborations: Open, Usable, Empowering, Secure, and Private.
We are partnering with the Open Data Institute to help develop new data collaborations and open-up the learnings around tools and processes so that everyone is able to better share, use and collaborate around data. Additionally, together with The GovLab at New York University, we colaunched the Open Data Policy Lab to support decision-makers at the local, state, and national levels to accelerate the responsible reuse and opening of data for the benefit of society.

Highlights
Data collaborations
Microsoft wants to help close the "data divide" by ensuring every person and organization can benefit from the data economy. Through the Open Data Campaign we will develop 20 new data collaborations by 2022, partnering with nonprofits, universities, companies and governments to collaborate around data to address major societal and business challenges.
Unlocking data while respecting privacy
In collaboration with Harvard, we developed and released SmartNoise, a first-of-its-kind open source platform for differential privacy. Differential privacy makes it possible to extract useful insights from datasets, while safeguarding the privacy of individuals. These Insights have the potential to help solve the most difficult societal problems in health, the environment, economics, and other areas.

2020 Microsoft Corporate Social Responsibility Report

Resources
Learn about our Open Data Campaign Learn about our data collaborations Learn about our collaboration with Harvard

LeLeaarnrnmmoorere

Support inclusive economic opportunity Protect fundamental rights Commit to a sustainable future Earn trust Empower our employees Our response to COVID-19

13

In our hometown: Increasing our commitment to affordable housing

Few corners of our world escape the increasing challenges of economic disparity, including the Puget Sound region, home to Microsoft's headquarters. Since 2011, jobs in the Puget Sound region have grown 21%, while growth in housing availability has lagged at 13%. This gap has caused the median home price to surge 96% in the past eight years, making the Greater Seattle area the sixth most expensive region in the US (source) and contributing to housing insecurity as well as rapidly transforming the fabric of the community. Altogether we've pledged $750 million in investments and grants to accelerate the creation and preservation of more affordable housing in the Puget Sound region. In total this year, we allocated over $380 million to support the preservation or creation of over 6,750 affordable housing units in the Greater Seattle area. Here are some of our community partners:
· We provided a no-cost $250 million line of credit to the Washington State Housing Finance Commission (WSHFC) to enable it to preserve and recycle the state's limited tax-exempt private activity bond volume cap. The line of credit will enable the WSHFC to finance approximately 3,000 additional units of much-needed affordable housing.
· We will contribute $50 million to the Evergreen Impact Housing Fund, a newly launched partnership between Seattle Foundation and the Washington State Housing Finance Commission with support from JPMorgan Chase and Co., to promote the development of approximately 1,250 low-income housing units on the eastside of King County.
· We've provided a $2.5 million philanthropic grant to HomeSight's Othello Square Project, which includes 192 units of affordable housing, early learning education, small business incubation, cultural celebration and preservation, and financial services in Seattle's most diverse neighborhood.
· We've provided a $2.5 million philanthropic grant to Rise Together, a collaborative effort between six nonprofit organizations to preserve their communities by creating 400 new units of low-income housing in Seattle's Central District, Capitol Hill and White Center neighborhoods.
We have tremendous gratitude for the support we've had from this community, and we are committed to ensuring our success supports the community in return.
Learn more about Microsoft's affordable housing commitment

2020 Microsoft Corporate Social Responsibility Report

Support inclusive economic opportunity Protect fundamental rights Commit to a sustainable future Earn trust Empower our employees Our response to COVID-19

14

Protect fundamental rights
Whether it's public health, environmental sustainability, cybersecurity, terrorist content online or the UN's Sustainable Development Goals, we at Microsoft have found that progress requires two elements. We need both international cooperation among governments and inclusive initiatives that bring in civil society and private sector organizations to collaborate on solutions.

Support inclusive economic opportunity Protect fundamental rights Commit to a sustainable future Earn trust Empower our employees Our response to COVID-19

15

Defending democratic institutions
We are using our voice and our resources to ensure others do not use technology to harm our communities, our economies, and the institutions that underpin our way of life.

Our commitments and approach
We believe technology companies have a responsibility to help protect our democratic processes and institutions. This responsibility requires constant vigilance and an effective collective defense against cyber-based attacks on candidates and voting systems, and disinformation campaigns against the public itself. Our Defending Democracy Program helps safeguard democratic processes globally from cyber-enabled threats by working with stakeholders spanning governments, non-government organizations, academics, political committees, and parties, political campaigns, and industry to protect elections around the world. The program works closely with product groups and services across Microsoft, coordinating efforts to improve the cyber-resilience of our election-related customers as well as other important stakeholders. In addition, the Defending Democracy Program provides trainings, programs, and technology to democratic stakeholders in over half of the world's democracies.
2020 Microsoft Corporate Social Responsibility Report

Highlights
Protecting campaigns
AccountGuard is a free service that notifies organizations of cyberattacks, tracking threat activity across email systems run by organizations as well as the personal accounts of its employees who opt-in. AccountGuard also includes access to cybersecurity training and, to date, we have trained more than 1,500 campaign staffers and consultants in the US on cybersecurity.
We have extended our AccountGuard threat notification service to political campaigns, parties and democracy-focused nonprofits in 30 countries around the world. It now protects more than 2 million accounts. Since the start of the year, we have also expanded AccountGuard to members of US Congress and their staff, state election officials, human rights organizations, journalists and media organizations, and healthcare institutions responding to the global pandemic.
In addition to AccountGuard, we also offer Microsoft 365 for Campaigns, bringing the advanced security capabilities of our Microsoft 365 Business offering to all federal and state political campaigns and party committees in the United States. Earlier this year, we announced international expansions to Canada and New Zealand.
Microsoft 365 for Campaigns brings together the productivity of Office 365, Windows 10, Enterprise Mobility and Security and collaboration solutions like Microsoft Teams. These solutions offer comprehensive email, filesharing, collaboration, cloud storage and conference calling solutions with easy-toconfigure intelligent security and device management capabilities.
Securing elections
In 2019, we announced ElectionGuard, a free open-source software development kit (SDK) from our Defending Democracy Program. ElectionGuard is accessible by design and aims to make voting more secure, verifiable and efficient anywhere it's used in democratic nations around the world. In February 2020, we conducted a successful pilot of ElectionGuard in a local election in Fulton, Wisconsin. Most recently, we made ElectionGuard available on GitHub, so that major election technology suppliers can begin integrating ElectionGuard into their voting systems.

We also recently released Election Security Advisors, a service that brings Microsoft's Detection and Response Team (DART) to election officials and political campaigns. The service offers both proactive security assessments and reactive incident response at an affordable price for political customers.
Ahead of the US 2020 elections, we collaborated with the Brennan Center for Justice and the Cybersecurity and Infrastructure Security Agency (CISA) to deliver cybersecurity training to nearly 400 state and local election officials across 40 US states.
Defending against disinformation
In response to the growing challenge of disinformation online, earlier this year we announced two new technologies to help educate the public about the problem as well as new partnerships to help advance these technologies and educational efforts quickly. The first of these technologies, Microsoft Video Authenticator, is helping identify deepfakes online by analyzing a still photo or video to provide a percentage chance, or confidence score, that the media is artificially manipulated.
The second technology will be offered through a partnership with BBC called Project Origin and focuses on authenticating the source of a piece of media. The tool will enable a content producer to add digital hashes and certificates to content, which can then be fed into a reader to verify over time that the content is authentic and has not been manipulated.
Media literacy is an important component of building societal resilience to disinformation. We recently released two online quizzes to help people learn more about disinformation: "Know My News," which focuses on understanding the credibility of news sources, and "Spot the Deepfake," which explores synthetic media and deepfakes.

Resources
Learn about our Defending Democracy Program
Learn about AccountGuard
Learn about Microsoft 365 for Campaigns

Learn more

Support inclusive economic opportunity Protect fundamental rights Commit to a sustainable future Earn trust Empower our employees Our response to COVID-19

16

Maintaining an ethical supply chain
When it comes to labor and human rights, we leave no doubt as to the standards we expect. Our standards apply to all our suppliers, including those at the farthest reaches of our supply chain.

Our commitments and approach
We have relationships with thousands of suppliers around the globe, spanning both hardware suppliers that manufacture our devices and components and indirect suppliers that provide everything from advertising services to building construction and maintenance.
We expect all suppliers who do business with Microsoft to uphold the human rights, labor, health and safety, environmental, and business ethics practices prescribed in our Supplier Code of Conduct. This code aligns with, and exceeds, the Responsible Business Alliance (RBA) responsible supply chain standards. Our Supplier Code of Conduct is included in all our supplier contracts, and Microsoft Social and Environmental Accountability (SEA) requirements are also incorporated into our hardware and packaging supplier contracts.
As a company, we will never tolerate violations of our standards and policies.
2020 Microsoft Corporate Social Responsibility Report

Highlights
Social and Environmental Accountability (SEA) Academy
Microsoft's SEA Academy is an online platform that provides training programs to build hardware and packaging suppliers' capabilities to promote workers' human rights and protect their occupational health and safety. We train suppliers' management, workers, and third-party auditors, as well as internal Microsoft teams, to increase skills and collaboration throughout the supply chain. The SEA Academy connects capability building for suppliers with targeted program strategies developed to address specific risks in different areas of the supply chain and deliver Microsoft SEA priorities.
Workers' Voice Hotline
The Microsoft Workers' Voice Hotline provides an external channel which workers in our hardware and packaging supply chain can rely on to report workplace concerns anonymously and without fear of retaliation. We use anonymous feedback from workers supplied through the Hotline to improve our Responsible Sourcing Program design.

Supplier diversity
Microsoft has a strong and long-standing commitment to source from historically disadvantaged groups. Our procurement team is committed to increasing our spending with diverse suppliers as a part of our Supplier Diversity Program. In the US in fiscal year 2019, Microsoft spent nearly $4 billion with diverse-owned businesses, continuing to place Microsoft in the top 20 companies for diversity spending globally.
Zero tolerance of forced or bonded labor
The Microsoft Supplier Code of Conduct establishes our prohibition against all forms of forced labor in our supply chains. For our hardware and packaging supply chain, we have continued to enhance our due diligence process through supplier contracts, onboarding training, supplier assessment and audits, corrective action and verification, sub-tier management, and the Workers' Voice Hotline. Our suppliers are required to implement compliance plans to identify and mitigate forced labor risks. Besides risk assessment and management, we build understanding and capability among our suppliers and Microsoft employees to prevent and correct forced labor issues.

Resources
Read our Fiscal year 2020 Devices Sustainability Report Read our commitment to anti-corruption and anti-bribery Read about our anti-corruption policy
Learn more

Support inclusive economic opportunity Protect fundamental rights Commit to a sustainable future Earn trust Empower our employees Our response to COVID-19

17

Providing disaster response and advancing humanitarian partnerships
Our vision is to empower humanitarian organizations and crisis-affected communities to realize the promise and potential of technology.

Our commitments and approach
We seek to help organizations leverage technology to scale the work they do and reach more of the beneficiaries they are trying to serve. Microsoft is uniquely positioned to support humanitarian organizations in their digital transformations to improve delivery of humanitarian response and development programming, creating greater resiliency in an increasingly challenging social and economic environment. We are also committed to mobilizing our digital skills and digital inclusion initiatives to crisis-affected communities.
2020 Microsoft Corporate Social Responsibility Report

Highlights
Digital inclusion and livelihoods
We partner with humanitarian organizations like UNICEF with the Learning Passport to ensure children and young people on the move, or in humanitarian emergencies, can access both online and offline education to gain the skills they need to thrive, regardless of their location or where they are on their education journey.
With UNHCR, the UN Refugee Agency, we partner to ensure digital skills and livelihood opportunities are made available for 25,000 young refugees and their host community in Kakuma Camp, Kenya, through the Connected Education Program.

Increasing capacity
As part of AI for Humanitarian Action we worked together with the Humanitarian OpenStreetMap Team and helped incorporate the 10 million building footprints in Uganda and Tanzania that are published by the Bing mapping team and updated their platform to support machine learning inputs.

Humanitarian partnerships
We partner with global humanitarian organizations CARE and Mercy Corps
to build Azure solutions for consolidation and analysis of global programs.

Contributing to humanitarian emergencies
In fiscal year 2020, we contributed $42 million to six humanitarian emergencies around the world through donations, technology, services, and employee giving. This included responding to COVID-19, wildfires in Australia and the US, and natural disasters such as Typhoon Hagibis and Hurricane Dorian.
We conducted 100+ Services Disaster Response missions in 28 countries involving over 1,000 employees providing critical technology support and solutions to nonprofit, government, and international organizations.

Combating human-trafficking
During the past year, we supported eleven organizations in deploying technology to increase the capacity of anti-human trafficking agencies and incorporate machine learning to assist humanitarian mapping.

Resources
Learn about how we support humanitarian action
Read how we are expanding access and eligibility to bolster impact through AI for Humanitarian Action

Learn more

Support inclusive economic opportunity Protect fundamental rights Commit to a sustainable future Earn trust Empower our employees Our response to COVID-19

Advocating for immigration reform
A well-functioning immigration system is an integral part of our nation's growth, development, and strength.

Our commitments and approach
We believe the diversity of our employees is one of our greatest strengths and that a healthy immigration policy is important from a humanitarian perspective and as a vital engine of the nation's economic growth.
In the US, Microsoft continues to support legislation to reform the immigration system so our nation can attract and retain skilled talent to help grow the US economy, including proposals that eliminate per-country limits on immigration, increase the number of employment-based green cards given in the US, improve security at the border, enhance the integrity of our nation's immigration programs, and provide a path to citizenship for eligible individuals under the Deferred Action for Childhood Arrivals (DACA) Program.

Highlights
Microsoftwasthe only company to file a lawsuit to object to the rescission of the DACA Program in 2017, a case that ultimately went to the Supreme Court. Microsoft joined the lawsuit based on concern about the decision's business and humanitarian impacts, including on our employees who are DACA registrants. Alongside amicus briefs filed by hundreds of other businesses, educational institutions, religious organizations, and municipalities, we all stood together to underscore that DACA registrants are important to the economy and the country.

Resources
Learn about our approach to immigration reform
Learn about our contest of the DACA rescission

2020 Microsoft Corporate Social Responsibility Report

18
Learn more

Support inclusive economic opportunity Protect fundamental rights Commit to a sustainable future Earn trust Empower our employees Our response to COVID-19

19

Harnessing AI for cultural heritage
It's our business to advance technology, and we believe technology should respect and help protect the world's timeless values. That conviction has led us to leverage the power of AI to empower people and organizations dedicated to the preservation and enrichment of cultural heritage.

Our commitments and approach
Our AI for Cultural Heritage Program uses artificial intelligence to work with nonprofits, universities, and governments around the world to help preserve the languages we speak, the places where we live, and the artifacts we treasure. It builds on recent work we've pursued using various aspect of AI in each of these areas.
We support specific individuals and organizations through collaboration, partnership, and investment in AI technology and resources.
To drive this commitment forward, we have committed $10 million over five years to expand access to Microsoft Azure and AI resources. We will focus these resources on projects across four core areas: people, places, languages, and historical artifacts.

Highlights
Making art collections and archives more easily accessed and enjoyed
Microsoft collaborated with the estate of acclaimed Minimalist and Conceptual artist (and Microsoft Art Collection artist) Sol LeWitt in creating an exciting and immersive new app. The Sol LeWitt app will take visitors on a virtual tour of the artist's studio and locations of LeWitt's famous Wall Drawings in institutions throughout the world. The app can also scan a wall drawing in person and illuminate the process in its creation.
Preserving important monuments and sites
In France, the Musée des Plans-Reliefs brings to life the historic Mont-SaintMichel relief map--an example of the 17th century's most advanced mapping technology--using artificial intelligence and mixed reality. We created an experience that uses current mapping innovations to immerse viewers in a vital piece of French history and culture.
Revitalizing languages through technology
As part of our ongoing efforts to preserve languages around the world, in Southwestern Mexico, we're engaged in capturing and translating Yucatec Maya and Querétaro Otomi using AI to make them more accessible to people around the world.
In New Zealand, with less than 3% of New Zealand residents speaking te reo Mori, Microsoft collaborated with indigenous Mori communities to help preserve and revitalize their language for future generations through Microsoft's Neural Machine Translation (NMT) techniques and advanced machine learning.

2020 Microsoft Corporate Social Responsibility Report

Resources
Learn about AI for Cultural Heritage

Learn more

Support inclusive economic opportunity Protect fundamental rights Commit to a sustainable future Earn trust Empower our employees Our response to COVID-19

20

Addressing racial injustice

In June, we made commitments to address racial injustice and inequity for the Black and African American community in the United States. We are also taking important steps to address the needs of other communities, including the Hispanic and Latinx community, across the company in the next five years. We are focused on multiyear, sustained efforts towards:
· Increasing our representation and culture of inclusion. We will build on our diversity and inclusion (DandI) momentum from the past five years by adding an additional $150 million of DandI investment, and will double the number of Black and African American people managers, senior individual contributors, and senior leaders in the United States by 2025.
· Engaging our ecosystem. We will use our balance sheet and engagement with suppliers and partners to extend the vision for societal change throughout our ecosystem, creating new opportunities for them and the communities they serve.
· Strengthening our communities. We will use the power of data, technology, and partnership to help improve the lives of Black and African American citizens across our country, including to address the safety and well-being of our own employees in the communities in which they live.
No company can change the world by itself. But we believe Microsoft can put the power of data, technology, and partnership to work to help improve the lives of Black and African American citizens across our country.
Learn more about our commitment to address racial injustice

2020 Microsoft Corporate Social Responsibility Report

Support inclusive economic opportunity Protect fundamental rights Commit to a sustainable future Earn trust Empower our employees Our response to COVID-19

21

Commit to a sustainable future

Addressing the climate crisis is good for the planet and good for Microsoft. That's why we're innovating and empowering customers, partners, NGOs, and governments around the world with technology to help them set and achieve their own climate goals.

Support inclusive economic opportunity Protect fundamental rights Commit to a sustainable future Earn trust Empower our employees Our response to COVID-19

22

Environmental sustainability: carbon, water, waste, and ecosystems
We must address climate change for a more sustainable future.

Our commitments and approach
In 2020, Microsoft has committed to becoming a carbon negative, zero waste, water positive company that is building a new planetary computing platform to transform the way we monitor, model, and ultimately manage Earth's natural systems. By 2030 we will: · Be carbon negative by reducing our carbon emissions by half
and removing the rest from the environment, including for our supply and value chains. · Be water positive for our direct operations, meaning we will replenish more water than we use. · Be zero waste for direct operations and products, and eliminate single use plastics in packaging by 2025.
By 2050, we will: · Remove from the environment all the carbon the company has
emitted directly or by electrical consumption since its founding.
Additionally, we will: · Protect more land than we use for our direct operations by 2025
and we will also build a new Planetary Computing platform to help monitor, model, and manage Earth's natural systems. · Continue to invest our $1 billion Climate Innovation Fund to accelerate the development of climate technologies. · Continue our commitment in Microsoft devices, cloud hardware, and procurement to operate as an industry-leading Responsible Sourcing Program and deepen engagement with suppliers to ensure our emissions reductions and water targets are met. · Use our voice to advocate for public policy initiatives that address climate change.
2020 Microsoft Corporate Social Responsibility Report

Highlights
Enabling others
In addition to developing and deploying digital technology to help our customers, we launched the Transform to Net Zero coalition with eight industry leaders to help our customers and others to move from commitments to action, accelerating business action toward a net zero carbon economy by 2050.
Enabling innovation
We announced investments from our $1 billion Climate Innovation Fund: $50 million in Energy Impact Partners' global platform for innovation of new carbon technologies; $30 million in Closed Loop Partners fund for waste innovation; and, $10 million in Emerald Technology Ventures fund to accelerate water technologies.

Investing in renewable energy
We announced a partnership with Sol Systems, a solar energy firm, for 500 megawatts of renewable energy and investments in communities disproportionately affected by environmental challenges.
Reducing electronic waste in landfills
Through our global recycling programs, we help reduce the environmental impact caused by electronic waste, as well as protecting the data of both Microsoft and our customers, by collecting and recycling used electronics. Microsoft extends the life of used electronic equipment by partnering with Microsoft Authorized Refurbishers to rebuild and reuse devices to help people, businesses, and communities around the world embrace sustainable technology.

Microsoft Sustainability Calculator
We launched the private preview of the Microsoft Sustainability Calculator to help our customers measure their carbon emissions and meet carbon reduction goals across all three scopes of emissions and are hosting additional resources to help them on their journey.
Empowering our suppliers
This year, our top suppliers reduced their collective carbon footprint by 21 million metric tons of carbon dioxide equivalents (CO2e). We updated our Supplier Code of Conduct to report greenhouse gas emissions data as a first step to help our suppliers reduce their emissions. And we built an Audit Management System using Microsoft Power BI to embed compliance and sustainability into our business. Now, we can track performance and enable continuous supply chain improvements by tracking supplier maturity in Social and Environmental Accountability. We also used the Social and Environmental Accountability Academy (SEA) platform and Microsoft Teams to train 2,234 supplier employees to improve SEA management capabilities.

More sustainable business travel
We recently announced a partnership with Alaska Airlines and SkyNRG to supply sustainable aviation fuel for three Alaska routes frequently traveled by Microsoft employees. Microsoft Teams enables employees to effectively meet with suppliers, customers, and other employees digitally, reducing carbon emissions associated with business travel.

Resources
Read our ambitious commitments
Learn about our Climate Innovation Fund
Learn about our renewable energy partnership with Sol Systems

Learn more

Support inclusive economic opportunity Protect fundamental rights Commit to a sustainable future Earn trust Empower our employees Our response to COVID-19

23

Putting data and digital technology to work: The Planetary Computer

Our Planetary Computer will offer insights to help save our world.
Creating a more sustainable future requires a much deeper understanding of the species, biodiversity, and ecosystems that are vital to our health and prosperity. We have committed to working to use the architecture of the information age data, compute, algorithms, application programming interfaces, and end-user applications to accelerate a more environmentally sustainable future through a new kind of computing platform: a Planetary Computer.
This Planetary Computer will provide insights into critical questions that scientists, conservation organizations, and businesses already ask every day, often with no easy way to obtain a locally relevant answer. For example:
· Understanding the tree density, land use, and size of forests has implications for biodiversity conservation and climate change mitigation. The Planetary Computer will provide satellite imagery, state-of-the-art machine learning tools, and user-contributed data about forest boundaries from which forest managers will have an integrated view of forest health.
· Urban planners and farmers depend on forecasts of water availability and flood risks to make educated guesses about land management. The Planetary Computer will provide satellite data, local measurements of streams and groundwater, and predictive algorithms that will empower land planners and farmers to make data driven decisions about water resources.
· Wildlife conservation organizations depend on their own local surveys, global views of wildlife populations, and suitable habitats for wildlife. The Planetary Computer will combine information about terrain types and ecosystems with the best available data about where species live, enabling a global community of wildlife biologists to benefit from each other's data.
· Combating climate change requires organizations to measure and manage natural resources that sequester carbon, like trees, grasslands, and soil. The Planetary Computer will combine satellite imagery with AI to provide up-to-date information about ecosystems and provide a platform for leveraging predictive models to estimate global carbon stocks and inform decisions about land use that impact our ability to address climate change.
Addressing the climate crisis is the defining issue of this decade. It requires a new depth of understanding, partnership, and transparency to make gains essential to preserving the health of our planet.
Learn more about the Planetary Computer
2020 Microsoft Corporate Social Responsibility Report

Support inclusive economic opportunity Protect fundamental rights Commit to a sustainable future Earn trust Empower our employees Our response to COVID-19

24

Earn trust

We are optimistic about the benefits of technology, but also clear-eyed about the challenges. You can't drive positive impact with technology if people don't trust the technologies or the companies behind them. That's why we take seriously our responsibility to earn trust. Without it, progress is not possible.

Support inclusive economic opportunity Protect fundamental rights Commit to a sustainable future Earn trust Empower our employees Our response to COVID-19

25

Respecting privacy
We recognize privacy as a fundamental human right and work to preserve our customers' ability to control their data and make informed choices to protect their privacy.

Our commitments and approach
Our approach to privacy and data protection is grounded in our belief that customers own their own data. Our privacy principles include a commitment to be transparent in our privacy practices, to offer meaningful privacy choices, and to responsibly manage the data we store and process. In addition, we continue to advocate for strong privacy laws both to ensure individuals are empowered with control over their data and transparency in how their data is used, and to require companies to be accountable and responsible for their use of personal data. We are committed to working collaboratively across industry, governments, educational institutions, and NGOs in the fight to protect privacy and cybersecurity for individuals and businesses around the globe.

Highlights
Giving customers transparency and control
We were early supporters of the European Union's General Data Protection Regulation (GDPR), and we were the first company to expand GDPR's core rights to all our customers around the world. To date, more than 43 million people have visited our privacy tools.

Preserving privacy while addressing COVID-19
It will be critical to preserve privacy as we develop and implement technical solutions to fight the pandemic. Earlier this year, we developed seven privacy principles for governments, public health authorities, academics, employers, and industries to consider as we collectively move forward with widespread tracking, tracing, and testing. These principles are designed to apply to any COVID-19 technological solutions that involve the collection and use of personal data such as health data, precise geolocation data, proximity or adjacency data, and identifiable contacts.
Advocating for privacy legislation and standards
We believe it is time for stronger privacy laws that provide technology companies with clear guardrails on how they can use data for responsible innovation. And whether new laws are passed or not, it is essential that companies develop their own strong privacy standards and assume accountability for how they use customers' data. We recently outlined a framework of trust--both for legislative action and corporate accountability-- that begins with these four principles: Transparency, Consumer Empowerment, Corporate Responsibility, and Strong Enforcement.

2020 Microsoft Corporate Social Responsibility Report

Resources
Learn about our seven privacy principles
Learn about our approach to privacy and an equitable recovery

Learn more

Support inclusive economic opportunity Protect fundamental rights Commit to a sustainable future Earn trust Empower our employees Our response to COVID-19

26

Advancing cybersecurity
Cybersecurity is a central challenge in the digital age, and we are committed to partnering across sectors to address changing digital threats.

Our commitments and approach
We use our voice and our resources to ensure others do not use technologies to harm our communities, our economies, and the institutions that underpin our way of life.
Our work is grounded in partnerships with governments and others in industry and civil society to promote effective ways to manage security risks, including through effective regulation, the use of standards and best practices, and public-private partnerships.
We employ thousands of security experts across 77 countries to interpret and expand the insights gained from our advanced engineering. Our Digital Diplomacy team seeks to promote digital peace and to support the global development and implementation of policies across a range of topics, including cyberwarfare, critical infrastructure security, cloud security, IoT security, AI security, and others.

Highlights
Partnering with the multistakeholder community
Microsoft was an early proponent of The Paris Call for Trust and Security in Cyberspace, an agreement which promotes commitments and norms to protect citizens and civilian infrastructure from systemic or indiscriminate cyberattacks. To date, more than 75 countries, 700+ companies, and more than 400 civil society organizations have signed on to commitments.
We deepened our engagement with civil society by funding the CyberPeace Institute, a Geneva based nonprofit focused on stability of cyberspace and support to communities that are most vulnerable online. We partnered with them to provide assistance to those at the frontlines of COVID-19 response in particular.
Microsoft also continued to drive industry action through the Cybersecurity Technology Accord, including helping recruit over 140 global technology companies to sign the Accord and advance online security and resiliency worldwide.
Generating insights that fuel security
Microsoft analyzes more than 8 trillion signals daily and processes 630 billion identity transactions and scans 470 billion emails for malware and phishing each month, generating insights that fuel security innovation for our customers. We use these learnings and leverage them for increased protection against sophisticated cyber threats.

Promoting community approach to cybersecurity is critical
This year we released a new annual report, the Digital Defense Report. In analyzing cybersecurity trends over a period of time, we can help strengthen the digital defense of Microsoft and our customers, using a combination of technology, operations, legal action and policy to disrupt and deter malicious activity.
One example of this approach is our investment in sophisticated campaign clustering intelligence in Microsoft 365, which enables security operations center (SOC) teams to piece together these increasingly complex campaigns from their fragments.
We are also trying to make it more difficult for malicious actors to operate online by disrupting their activities through legal action. By proactively seizing their malicious infrastructure, the bad actors lose visibility, capability and access across a range of assets previously under their control, forcing them to rebuild. Since 2010, our Digital Crimes Unit has collaborated with law enforcement and other partners on 23 malware disruptions, resulting in over 500 million devices rescued from cybercriminals.

2020 Microsoft Corporate Social Responsibility Report

Resources
Learn about the Cybersecurity Tech Accord
Learn about the CyberPeace Institute

Learn more

Support inclusive economic opportunity Protect fundamental rights Commit to a sustainable future Earn trust Empower our employees Our response to COVID-19

27

Strengthening digital safety
Digital safety is a whole of society problem requiring a whole of society approach.

Our commitments and approach
Microsoft is committed to delivering our services so they are tools of empowerment for people and do not contribute, however indirectly, to causing harm.
We have a responsibility to manage our services in a way that respects timeless human values, like privacy and freedom of expression. We are committed to lending our knowledge and experience to address illegal and harmful content, like child sexual exploitation, abuse imagery, and terrorist and violent extremist content.
Our collaborations across the technology sector and with policy makers and experts from civil society and academia are central to any progress we can make as a company.

Highlights
Countering online child sexual exploitation and abuse
We remain resolute in our commitment to countering online child sexual exploitation and abuse. In line with that commitment, this year we have undertaken a range of activities built on new principles, partnerships, and technology approaches. A few examples of these activities include:
· Endorsing the Voluntary Principles to Counter Online Child Sexual Exploitation and Abuse through our active participation in groups such as WePROTECT Global Alliance and the Technology Coalition with whom we continue to develop new technology and partnerships to support this collective work.
· Joining leading technology companies in announcing Project Protect, a strategic vision for the future of the Technology Coalition focusing on technology innovation, collective action, independent research, information and knowledge sharing, transparency, and accountability to combat Online Child Sexual Exploitation and Abuse.
· We released a grooming-detection technique, by which online predators attempting to lure children for sexual purposes can be detected, addressed, and reported. Developed in collaboration with The Meet Group, Roblox, and Kik and Thorn, this technique builds off Microsoft-patented technology and is freely available to qualified online service companies that offer a chat function.

Combating terrorism and violent extremism online
We continue to take steps to eliminate terrorist and violent extremist content when it appears on our hosted consumer services. We invest in collaborative efforts and partnerships with others who are working to stem the broader issue of violent extremism, including being a leading proponent for the creation of The Christchurch Call, an initiative that brings together members of the technology sector, governments, and civil society to prevent technology from being used to promote terrorism and violent extremism online. We were also one of the founding member companies of the Global Internet Forum to Counter Terrorism (GIFCT), whose mission is to prevent terrorists and violent extremists from exploiting digital platforms.
Promoting digital civility
Understanding the essential steps of internet safety to help people protect their devices, information, and families when they go online begins with research. As part of the Microsoft Digital Civility Index (DCI), in our 2020 Digital Civility research we asked more than 12,500 teens and adults in 25 countries to predict the tone and tenor of online behavior in the next decade. The underlining goal of this research is to shine a spotlight on perceived online risks and to encourage people to adopt more respectful online habits and practices. And while the DCI stands at its lowest level since the survey began in 2016, we are investing in ways to realize some of the positive findings in the research, including continuing to highlight our Digital Civility Challenge which promotes the adoption of positive online habits and practices through common-sense principles for safer, healthier, and more respectful online interactions.

2020 Microsoft Corporate Social Responsibility Report

Resources
Learn about the Voluntary Principles to Counter Online Child Sexual Exploitation and Abuse
Learn about the Christchurch Call to Action

Learn more

Support inclusive economic opportunity Protect fundamental rights Commit to a sustainable future Earn trust Empower our employees Our response to COVID-19

28

Responsible AI: Putting our principles into practice

As artificial intelligence becomes more common in our everyday lives, it's important that we continue our work to maximize its benefits and minimize any risks. Microsoft's Office of Responsible AI is creating the internal governance across our engineering and product teams needed to turn our AI principles into practices, as well as using our voice to advocate for change.
For example, facial recognition can help find a missing child or speed up border crossings, but misuse or bias in datasets can also lead to human rights abuses or civil liberties violations. That's why Microsoft established our own internal principles to guide the development of our facial recognition technology. To help our customers build and use the technology responsibly and get the best results, we developed a Transparency Note for Face API to disclose the limitations and capabilities of our technology. The Face API Transparency Note proved so helpful that we're now underway with preparing similar documentation for other products to ensure our customers fully understand their capabilities and limitations.
On the public policy front, Microsoft's call for government regulations on the use of facial recognition helped kick off a national conversation around the use of facial recognition. Earlier this year we were happy to applaud Washington State when it became the first state to establish detailed safeguards on how the technology should be used. The law put in place testing requirements, established transparency and accountability mechanisms, and offers protections for civil liberties. We view the law as a good first step and a model for other states or Congress to adopt.
To build on this work, earlier this year, Microsoft also confirmed that we would not sell our facial recognition technology to police departments in the United States until there is a strong law, grounded in human rights, that establishes appropriate safeguards.
We know how challenging this work can be, and we're committed to sharing what we learn so that others can adopt the practices, tools, and guidelines that we develop. We launched a Responsible AI Resources Center to make them widely available. The resources include checklists for AI fairness and guidelines for human-AI interaction, Conversational AI, and inclusive design. There are also tools to help build, understand, protect, and control AI as well as webinars and podcasts with some of Microsoft's leading experts on responsible AI.
Our goal is to enable responsible innovation, empower others, and foster positive impact through the use of AI.
Learn more about our Facial Recognition principles
2020 Microsoft Corporate Social Responsibility Report

Support inclusive economic opportunity Protect fundamental rights Commit to a sustainable future Earn trust Empower our employees Our response to COVID-19

29

Empower our employees
We foster a workplace where everyone can use the power of the Microsoft platform to pursue their passions, fulfill their purpose, and empower others. Each day, we show up to make a difference in the world.

Support inclusive economic opportunity Protect fundamental rights Commit to a sustainable future Earn trust Empower our employees Our response to COVID-19

30

Empower our employees
Our employees are essential to fulfilling our company's mission, and we continually strive to improve as a company through having a diverse and inclusive workforce.

Our commitments and approach
To be successful as a business in empowering everyone on the planet, we need to reflect the world we serve. This is our commitment, and we have goals and programs to improve representation in all roles and at all levels.
We expect each employee--no matter their level or function--to play an active role in creating inclusive environments where all employees can bring their authentic selves and contribute their best work. Further, we are strengthening our accountability for progress on representation by deepening our practice of evaluating each Corporate Vice-President and General Manager on their progress on diversity and inclusion when determining their impact and rewards, as well as promotion considerations.
We continually strive to improve as a company through the ideas and feedback of employees. This includes a process called Perspectives, which is built using learnings from neuroscience and social psychology and designed to improve how we ask for, share, and receive high-quality feedback to enable our growth mindset and strengthen our culture.
We are passionate about giving time, money, and skills to address the issues facing our world. It's part of our culture and how we live our mission.
2020 Microsoft Corporate Social Responsibility Report

Highlights
Activating allyship for greater inclusion
We are accelerating our cultural transformation through further investment in inclusion, defining it as a "core priority" for all employees. As part of our performance and development approach, every employee is encouraged to deepen their learning about diversity and make inclusion a daily--and personal--part of their job.
Effective systemic change calls on employees at every level to consciously create inclusive experiences and environments for each other. Accordingly, we launched Allyship at Microsoft, a series of learning opportunities to become a more informed and effective ally through habit formation, building on ongoing conversations, insights, and failures, then recovery and learnings.

Diversity representation from the top down
This year's Microsoft Diversity and Inclusion Report came at a time marked by the ongoing COVID-19 pandemic, amplified acts of racial injustice, and the reality of global uncertainty. Navigating this has required us all to ask hard questions, listen openly to the answers, and then face the challenges head on together. It is through this process, despite the discomfort, that we grow as individuals and as an organization. The workforce data shared in the report reflect a continuous five-year trend of gains in representation of women and racial and ethnic minorities at Microsoft. But more importantly, the data show us the areas where we need to do better--specifically, that improving representation across all levels and roles must be a priority.
Supporting our employees
We continue to build a more inclusive environment through programs like expanded caregiver leave, unconscious bias training, a global allyship program, a commitment to ongoing dialogue, and support for our Employee Resource Groups (ERG), which included the establishment of the new Indigenous at Microsoft ERG this year.

Employee giving
In fiscal year 2020, Microsoft employees donated $221 million (inclusive of company match) to nonprofits worldwide and volunteered more than 750,000 hours in the US alone.

Resources
Read our Diversity and Inclusion Report
Read about activating allyship for greater inclusion
Learn more

Support inclusive economic opportunity Protect fundamental rights Commit to a sustainable future Earn trust Empower our employees Our response to COVID-19

31

Our response to COVID-19

Our partners and grantees make progress against COVID-19 every day, but there is still much to do to fight the disease. The great work being done by our partners and grantees emboldens us to continue working tirelessly against COVID-19, while also supporting and helping those on the front lines.

Support inclusive economic opportunity Protect fundamental rights Commit to a sustainable future Earn trust Empower our employees Our response to COVID-19

32

A global company helping address a global crisis. Response to COVID-19 is unique--strong partnership component
We are focused on providing the critical digital support needed for the world's first responders.

Protecting public health during the pandemic
We believe advancing opportunity starts with protecting public health, an issue that impacts every person on the planet, transcends every border, and is critical to our ability to survive and thrive. Current events have only underscored that without a healthy society, we cannot sustain a healthy economy.
In response to the urgent health crisis caused by the COVID-19 pandemic, we have marshaled our resources to protect public health by providing tools and technology to those on the front lines­including health care providers and researchers­to better understand the virus, its transmission, treatment and potential vaccine.
A few of the specific actions we are taking include:
· Using Azure high-performance computing capabilities and our data scientists and Microsoft researchers to protect public health. One example of this is our expanded commitment to our AI for Health Program, dedicating an additional $20 million in funding to advance the efforts of researchers on the front lines of COVID-19.
· Through AI for Health we are focused on funding projects that use data to help public health authorities make informed and effective decisions on social distancing policies and healthcare capacity needs, help healthcare providers respond to the immediate crisis more safely and effectively, and accelerate scientific efforts to understand and treat COVID-19 and develop a vaccine.

· We have awarded more than 150 grants through AI for Health to organizations tackling the COVID-19 pandemic, including:
· Duke University, selected through the White House High Performance Computing Consortium, whose research team is addressing the short supply of ventilators by developing a new technique that allows them to be split and used with multiple patients.
· COVID-19 Moonshot project by UCB that is leveraging Azure to screen targets and potential entities for research.
· Folding@home, a global organization using distributed computing to research COVID-19 proteins and inform new therapies.
· Helping establish and make available the COVID-19 Open Research Dataset, representing the most extensive machine-readable coronavirus literature collection available for data and text mining to date, with more than 130,000 scholarly articles. The aim is to aid research and discovery efforts for scientists, clinicians, and those working toward a solution.
· Microsoft's subsidiary GitHub is also hosting important data on the spread of COVID-19, making it easier for researchers to use and analyze this vital data. We also use this data to develop visualizations in Power BI to support policymakers around the world as well as deliver a real-time public view of the progress we're making together to heal the world.

2020 Microsoft Corporate Social Responsibility Report

Support inclusive economic opportunity Protect fundamental rights Commit to a sustainable future Earn trust Empower our employees Our response to COVID-19

33

A global company helping address a global crisis. Response to COVID-19 is unique--strong partnership component
We are committed to helping governments and communities use digital technology and the power of data to respond to the immediate crisis and accelerate the recovery.

Supporting the economy and recovery
Beyond protecting public health, we are working to sustain economic and societal activity in the short-term and promote an inclusive recovery for the long term. Our efforts include:
· Helping governments: Governments across the world looked to Microsoft to help them move critical workloads to the cloud so that essential teams can work remotely in a secure and productive way using Office 365 and Microsoft Teams. For instance, in Germany we activated 23,000 seats off Office 365 for the federal government in just over a week, allowing officials to collaborate on crisis response more effectively and to work remotely in a secure way.
· Supporting small and medium-sized businesses: we are providing these businesses with the tools they need to work remotely and continue to serve customers. This includes providing six months free access to the business version of Office 365, which includes Teams for collaboration and video conferencing around the world.
· Helping those who are impacted find new jobs: Through our global skills initiative, we're committed to helping 25 million people acquire new digital skills needed for the changing economy. This comprehensive initiative brings together every part of our company, combining existing and new resources from LinkedIn, GitHub, and Microsoft. We are also providing $20 million in financial grants, plus technical support, to nonprofit organizations around the world that provide digital skills training to underserved communities.
· Working to get people online: As communities around the globe adapt to a world with COVID-19, access to broadband connectivity is more critical to our lives and livelihoods than ever before, providing access to education, telemedicine and commerce. Through our Airband Initiative, we are working with our Airband ISP

Partners to bring expanded Wi-Fi coverage to communities quickly, deploying hundreds of Wi-Fi hotspots in public areas with ample parking, such as fairgrounds, so that community members can safely access the internet while practicing social distancing.
· Supporting the nonprofits that are the first responders: The demands on nonprofits and NGOs are perhaps greater today than ever before and our Tech for Social Impact Program continues to help enable their digital transformation, allowing nonprofits to continue to serve vulnerable communities impacted by COVID-19 and helping many scale further to meet the unprecedented demands. Last year Microsoft put $1.9 billion in donated or discounted technology and services--ranging from Microsoft 365 to Power BI to Azure--in the hands of nonprofits, humanitarian organizations, and the UN and its agencies worldwide. In response to COVID-19, we committed to double our Microsoft Azure credits, increased our Windows benefits, and added new pro bono services to help critical care and first response nonprofits in their efforts to combat COVID-19. In addition, we launched free trial offers including Office 365 for Volunteers and Power Platforms to support critical COVID-19 response scenarios.
· Empowering our employees: After COVID-19 forced employees to work remotely, essentially closing down Microsoft campuses and their services, we promised to continue paying our hourly employees their regular wages--whether or not their full services are needed--creating a financial safety net for more than 4,500 hourly employees.
· Employee giving: Microsoft employees stepped up to support nonprofits across the world as part of a special two month Give Together campaign. Our employees donated over $42.8 million, inclusive of company match, to over 10,000 nonprofits focused on COVID-19 response in 5,564 cities and 76 countries.

2020 Microsoft Corporate Social Responsibility Report

Support inclusive economic opportunity Protect fundamental rights Commit to a sustainable future Earn trust Empower our employees Our response to COVID-19

34

A global company helping address a global crisis. Response to COVID-19 is unique--strong partnership component
We are providing strong protection for cybersecurity, privacy, and digital safety throughout this crisis.

Protecting customers from online threats
Individuals, businesses, schools, healthcare providers and governments are all using technology in new and innovative ways to respond to the COVID-19 pandemic. But we have also seen digital threats emerge and are focused on helping tackle these challenges and protect our customers by:
· Tackling COVID-19-themed threats: A cross-company team including our Digital Crimes Unit (DCU), and threat intelligence teams are providing support to identify and tackle COVID-19-themed attacks on customers, including healthcare customers. As part of this Task Force, the Microsoft Digital Crimes Unit is analyzing data regarding cyberthreats associated with malware, phishing and fraud, and we have shared with the proper authorities 13,971 potentially malicious COVID-19-themed domains and 28,476 URLs since March so they can be taken down, and where possible, the individuals behind them, can be prosecuted.

· Using our technology to keep people safe: In a single day, SmartScreen sees and processes more than 18,000 malicious COVID-19-themed URLs and IP addresses. Microsoft Office 365 Advanced Threat Protection prevented a massive phishing campaign that used a fake Office 365 sign-in page to capture credentials. Roughly 2,300 unique HTML attachments posing as COVID-19 financial compensation information documents were caught in 24 hours in this one campaign.
· Protecting privacy: As people and organizations use technology to stay in new ways, or new solutions to the public health challenges are created, it is essential that we continue to ensure strong privacy protections are in place. Microsoft has advocated for federal privacy legislation in the US since 2005 and continues to push for action, including to preserve privacy while addressing COVID-19.
· Advocating for new policies: Our Digital Diplomacy Team is working to support efforts by the United Nations and others for a "digital ceasefire" in nation-state attacks on essential infrastructure including hospitals, and a longer term "Global Compact" or binding prohibition to protect healthcare institutions against nationstate cyberattacks.

2020 Microsoft Corporate Social Responsibility Report

Support inclusive economic opportunity Protect fundamental rights Commit to a sustainable future Earn trust Empower our employees Our response to COVID-19

35

Conclusion
Transparency is foundational to trust, so we provide clear information on how we run our business and how we work with customers and partners. You can find details on our CSR Reports Hub covering everything from law enforcement access to data, to environmental data, details on our political activities, workforce demographics, and human rights.
Learn more about our approach to corporate social responsibility and reporting

SASB Materiality Reference Index

Dimension

General issue category

Software and IT Services

Hardware

Environment Social capital
Human capital
Business model and innovation
Leadership and governance

Energy management
Customer privacy Data security Employee engagement, diversity and inclusion Product design and lifecycle management Supply chain management
Materials sourcing and efficiency Competitive behavior Systematic risk management

https://www.microsoft.com/en-us/corporateresponsibility/sustainability CDP Climate Change Response 2020 https://www.microsoft.com/en-us/corporateresponsibility/privacy

https://www.microsoft.com/en-us/security

https://www.microsoft.com/en-us/security

https://www.microsoft.com/en-us/corporateresponsibility/empowering-employees https://www.microsoft.com/en-us/diversity/ https://news.microsoft.com/hitrefresh/

https://www.microsoft.com/en-us/corporate-responsibility/ empowering-employees https://www.microsoft.com/en-us/diversity/ https://news.microsoft.com/hitrefresh/

Devices Sustainability Report

Devices Sustainability Report https://www.microsoft.com/en-us/corporate-responsibility/ responsible-sourcing Devices Sustainability Report https://www.microsoft.com/en-us/corporate-responsibility/ responsible-sourcing

https://www.microsoft.com/en-us/legal/compliance/sbc/

Shareholder Letter 2020 Proxy Statement 2020

2020 Microsoft Corporate Social Responsibility Report

Support inclusive economic opportunity Protect fundamental rights Commit to a sustainable future Earn trust Empower our employees Our response to COVID-19

36

More resources
Support inclusive economic opportunity
Promoting accessibility and Inclusion Our commitments to Accessibility Our employees with disabilities How grantees are making impact How we work with designers and engineers to build inclusive products Accessibility Evolution Model Disability Answer Desk and resources How Microsoft is shrinking the data desert
Closing the broadband gap Airband partnerships Technology models Our work during COVID-19 Annual update on connecting rural America Our digital gender equity partnership
Building skills for employability Our resources for job seekers Our community skills grants for nonprofits serving Black and African American communities Our partnership with Grab Our efforts to increase access to computer science Microsoft TEALS
Empowering nonprofits worldwide Tech for Social Impact Providing more cloud and tech support for nonprofits on COVID-19 frontline Global Social Entrepreneurship Program
Promoting more equitable access to data Open Data Campaign Our data collaborations Our collaboration with Harvard
2020 Microsoft Corporate Social Responsibility Report

Protect fundamental rights
Defending the democratic institutions Defending Democracy Program ElectionGuard AccountGuard Microsoft 365 for Campaigns Our work combatting disinformation Take the Spot the Deepfake Quiz Take the Know My News Quiz
Maintaining an ethical supply chain FY 2020 Devices Sustainability Report Our commitment to anti-corruption and anti-bribery Our anti-corruption policy Our Supplier Code of Training Supplier diversity at Microsoft
Providing disaster response and advancing humanitarian partnerships How we support humanitarian action Expanding access and eligibility to bolster impact through AI for Humanitarian Action
Advocating for immigration reform Our approach to immigration reform Our contest of the DACA rescission The oral arguments at the Supreme Court
Commit to a sustainable future
Environmental sustainability: carbon, water, waste and ecosystems Our ambitious commitments Climate Innovation Fund Our renewable energy partnership with Sol Systems Our partnership with Alaska Airlines on sustainable aviation fuel Transform to Net Zero coalition Microsoft Sustainability Calculator Other resources Devices Sustainability Report Environmental Compliance for Devices and Packaging

Harnessing AI for cultural heritage Learn about how AI is helping revitalize a language
Earn Trust
Respecting privacy Our seven privacy principles Our approach to privacy and an equitable recovery
Advancing cybersecurity Cybersecurity Tech Accord CyberPeace Institute Cyber Defense Operations Center Digital Defense Report Protecting people from digital threats Critical steps for securing cyberspace Combat ransomware ahead of US elections Cyberattacks targeting US elections Legal action against COVID-10 cybercrime
Strengthening digital safety Voluntary Principles to Counter Online
Child Sexual Exploitation and Abuse Christchurch Call to Action 2020 Digital Civility Report Digital Civility Challenge
Responsible AI Putting AI principles into practices Our responsible AI principles Transparency Note for Face API Call for government regulations Facial recognition progress in Washington state Responsible AI Resources Center
Empower our employees
Diversity and Inclusion Report Activating allyship for greater inclusion Our global Diversity and Inclusion commitments Our inclusive approach to hiring

2020 Microsoft Corporate Social Responsibility Report

Microsoft.com/CSR


Adobe PDF Library 15.0 Adobe InDesign 16.0 (Windows)