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[PDF] The Microsoft carbon fee: theory & practice - Microsoft Download

Microsoft's carbon fee model is doing just that: making the costs and consequences of climate risks The fund that it produces enables us to invest in citizenship

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[PDF] The Microsoft carbon fee: theory & practice - Microsoft Download 78683_2microsoft_carbon_fee_guide.pdf The Microsoft carbon fee: theory & practice

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efforts to drive culture change

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Microsoft Corporation

December 2013

Contents

Foreword .............................................................................................................................. 3

Executive summary ............................................................................................................ 4

7OH ´ROMPµ POUHH ŃULPLŃMO ŃRPSRQHQPV .......................................................................... 5

7OH ´RO\µ NHQHILPV RI POH ŃMUNRQ IHH PRGHO ............................................................. 8

Efficiency ................................................................................................................................................................................. 8

Responsibility ........................................................................................................................................................................ 9

Leadership ............................................................................................................................................................................10

7OH ´ORRµ ILYH VPHSV Po establishing an internal carbon fee ................................ 12

Step 1: Calculate your carbon impact .......................................................................................................................13

Step 2: Establish a carbon reduction policy and develop an investment strategy ..................................16

Step 3: Determine your internal carbon price ........................................................................................................23

Step 4. Gain approval and establish governance and feedback loops ........................................................27

Step 5: Administer the fee, communicate results, and evolve to increase impact ..................................29

Conclusion ......................................................................................................................... 34

The role of technology in accelerating the transition to a low-carbon economy ..................................35

Our resources ................................................................................................................... 37

7OLV JXLGH SUHVHQPV NRPO 0LŃURVRIP·V MSSURMŃO to building a simple carbon fee model and a five-step

process to help you customize the model for maximum impact. It is designed for leaders who are

interested in learning what our voluntary organizational carbon fee is, why it might be helpful in your

organization, and how to implement this simple model³whether the goals are to reduce costs, align

with the RUJMQL]MPLRQ·V ŃRGH RI HPOLŃV OHOS PLPLJMPH HŃRQRPLŃ VRŃLMO MQG HQYLURQPHQPMO ULVNV IURP

climate change, make a difference with citizenship projects, or drive innovation. These leaders include:

CEOs, CFOs, and sustainability managers in the private sector Public officials Professors and students in areas such as environmental economics, environmental finance, and environmental law Members of non-governmental organizations (NGOs)

How to read this guide: People in different roles will likely want to focus on different sections of the

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section provides detailed guidance for those actually implementing the model. The Microsoft carbon fee: theory & practice | 3

Foreword

by Mindy S. Lubber, President, Ceres When it comes to mitigating risks associated with sustainability issues, the importance of having

robust corporate policies that reflect a ŃRPSMQ\·V VXVPMLQMNLOLP\ SULRULPLHV ŃMQQRP NH RYHUVPMPHGB

Ceres works with companies across a wide range of industries to address environmental and social

issues in their core business practices. We see time and again that the companies that integrate their

sustainability goals across their entire business platform³rather than cloistering these strategies in

an isolated department³are the ones best positioned to capitalize on changing economic, environmental, social and political conditions.

0LŃURVRIP·V ŃMUNRQ IHH PRGHO LV GRLQJ ÓXVP POMP PMNLQJ POH ŃRVPV MQG ŃRQVHTXHQŃHV Rf climate risks

and opportunities tangible to the broader company. For a company to choose to become carbon

neutral is not novel, but Microsoft is taking an additional step by detailing the way to get there with a

carbon fee. By disseminating the costs associated with its carbon neutral policy across the

organization (based on which divisions are actually responsible for the carbon emissions), Microsoft

has created a self-replenishing fund to subsidize green initiatives and offset any residual emissions.

MLŃURVRIP·V PRGHO LV based purely on consumption³WKHUH

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