Microsoft invests in AI in Wisconsin and adds supplier climate requirement

Microsoft announces $3.3 billion investment in Wisconsin to spur artificial intelligence innovation and economic growth

https://news.microsoft.com/2024/05/08/microsoft-announces-3-3-billion-investment-in-wisconsin-to-spur-artificial-intelligence-innovation-and-economic-growth

Microsoft announced a broad investment package designed to strengthen the role of Southeast Wisconsin as a hub for AI-powered economic activity, innovation, and job creation. These investments include $3.3B in cloud computing and AI infrastructure, the creation of the country’s first manufacturing-focused AI co-innovation lab, and an AI skilling initiative to equip more than 100,000 of the state’s residents with essential AI skills.

“Wisconsin has a rich and storied legacy of innovation and ingenuity in manufacturing,” said Brad Smith, Vice Chair and President of Microsoft. “We will use the power of AI to help advance the next generation of manufacturing companies, skills and jobs in Wisconsin and across the country. This is what a big company can do to build a strong foundation for every medium, small and start-up company and non-profit everywhere.”

Tech giant reports 30% rise in emissions and says biggest challenge in meeting its own climate goals is reducing carbon footprint of supply chain

https://www.wsj.com/articles/microsoft-imposes-new-climate-requirement-on-suppliers-in-effort-to-lower-its-emissions-32169953?mod=djemSustainableBusinessPro

Microsoft will ask its main suppliers to use 100% renewable energy by the end of the decade, as it reported a 30% rise in emissions and acknowledged that its biggest challenge in meeting its climate goals comes from the construction of new AI infrastructure and tackling emissions from its supply chain.

Chief Sustainability Officer Melanie Nakagawa said the company will require “select scale, high-volume suppliers to use 100% carbon-free electricity by 2030” for goods and services delivered to Microsoft. The tech heavyweight said the requirements will be rolled out at the start of the 2025 fiscal year as part of an overall update to the company’s Supplier Code of Conduct.

Author: Christopher K. Merker, Ph.D., CFA

Christopher K. Merker, PhD, CFA, is a director with Private Asset Management at Robert W. Baird & Co. He holds a PhD in investment governance and fiduciary effectiveness from Marquette University, where he has taught the course “Sustainable Finance” since 2009. Executive director of Fund Governance Analytics (FGA), an ESG research partnership with Marquette University, he is a member of the CFA Institute ESG Working Group, an international committee currently exploring ESG standards, publishes the blog, Sustainable Finance, which covers current topics around governance and sustainability in investing, and is co-author of the book, The Trustee Governance Guide: The Five Imperatives of 21st Century Investing.