Climate Policy Engagement Analysis
Climate Policy Engagement Overview: Microsoft has demonstrated generally positive engagement on climate change policy within the US and EU, although with somewhat limited recent evidence (from 2023 to present). Microsoft has supported major climate legislation including the Inflation Reduction Act in the US, as well as increased ambition for EU 2040 climate targets. However, Microsoft remains a member of several industry associations that actively engage in opposition to climate policy, including BusinessEurope and the US Chamber of Commerce, where a Microsoft executive serves on the Board of Directors.
Top-line Messaging on Climate Policy: Microsoft demonstrates positive top-line support for climate action. In its 2024 Lobbying Alignment Report, accessed April 2025, Microsoft affirmed its support for a range of policies to address climate change, including carbon pricing, emissions standards, and incentives for the low-carbon transition. In September 2023, Microsoft signed onto an open letter with the Global Renewables Alliance to policymakers at COP28 in support of various mechanisms of government intervention to respond to climate change, including technology standards, renewable development, and pricing carbon into the economy. Through this letter, Microsoft advocated for increased ambition from policymakers to align global climate action plans with the goal of limiting temperature rise to 1.5°C.
Engagement with Climate-Related Regulations: Microsoft appears broadly supportive of a range of government policies to respond to climate change, with most of its advocacy efforts focused within the US and EU. In its most recent Environmental Sustainability Report, released May 2024, Microsoft emphasized the need for public policy frameworks that support the development of market-based solutions for renewable energy development and corporate procurement.
However, some evidence of direct engagement suggests mixed positions in the company’s advocacy. In June 2023, Microsoft submitted a consultation response to the EU in which the company appeared to support increasing the stringency of the ETS framework post-2030, including by expanding the regulations to apply to a broader range of sectors and incorporating non-CO2 emissions. In the same response, however, Microsoft also appeared not to support a more stringent application of the EU Effort Sharing Regulation by advocating in favor of EU-wide sectoral GHG emissions targets over binding national emissions targets, effectively limiting the scope of the regulation.
Positioning on Energy Transition: Microsoft is most actively engaged on policy related to transitioning the energy mix, advocating with consistently positive positions. In January 2025, Microsoft submitted a pre-budget consultation to the Australian government, promoting the data center industry as a catalyst for the energy transition, suggesting that data center operators could help Australia meet its renewable generation goals. In its 2024 Lobbying Alignment Report, Microsoft detailed its advocacy in support of carbon-free energy, calling for the modernization of grid infrastructure and energy storage technologies to help facilitate the transition to a “net-zero carbon emissions economy.” In August 2023, Microsoft strongly supported provisions within the EPA’s proposed power plant rules aimed at decarbonizing the energy sector in comments submitted as part of the Ceres BICEP network. In a January 2023 blog, the company expressed support for efforts by policymakers in its headquarter state, Washington, to “accelerate the transition to cleaner energy sources” through policies such as the Climate Commitment Act and the Clean Energy Transition Act.
Industry Association Governance: Microsoft is somewhat transparent regarding its indirect engagement on climate policy. The company released a Sustainability Policy Alignment report in January 2024 in which it disclosed a number of its industry associations and their climate policy positions and engagement activities; however, Microsoft limited the scope of its report to US-based industry associations, and as a result did not disclose membership in groups such as Business Europe or The Business Council of Canada. Additionally, in this report, Microsoft did not disclose key information on its relationships with some of the disclosed industry associations, including that a company executive serves on the Board of Directors for the US Chamber of Commerce, which regularly opposes climate policies. The company did not provide any disclosure of industry association membership in its 2024 CDP Response.
InfluenceMap collects and assesses evidence of corporate climate policy engagement on a weekly basis, depending on the availability of information from each specific data source (for more information see our methodology). While this analysis flows through to the company’s scores each week, the summary above is updated periodically. This summary was last updated in Q2 2025.