Microsoft shareholders are set to vote on December 8 on a proposal asking the company to show how it plans to meet its climate promises. Microsoft's greenhouse gas output has grown sharply since 2020, when it pledged to become carbon-negative by 2030. The company is urging investors to vote no.
What happened
Trillium Asset Management, a firm that specializes in sustainable and responsible investing, is backing Proposal 4 at Microsoft's annual meeting. The proposal asks Microsoft to share more detail on how it will manage its climate commitments. It asks for the information to be given every year, at reasonable cost, and without revealing proprietary information.
The numbers
In 2020, Microsoft said it would be carbon-negative by 2030. It also aims to have removed, by 2050, the equivalent of all the carbon it has ever emitted. Since then, demand for AI and cloud services has driven a wave of new datacenters.
- Emissions rose from 13 million tons of CO2 equivalent in 2020 to 20 million tons in 2025.
- The proposal says that is 62 percent above the 2020 baseline.
- Microsoft estimates emissions would be near 34 million tons without its existing reduction efforts.
- Microsoft's cloud division made $214.4 billion in the fiscal year ended June 30, up 27 percent.
Most of the rise comes from indirect emissions, known as Scope 3, tied to building and equipping datacenters. Scope 2, which covers emissions from energy the company buys, is also growing. It made up 13 percent of the total in 2025, up from 2 percent in 2024.
Why investors are pushing
The filing argues that missing the 2030 target could hurt Microsoft's credibility and investor trust. It also says Microsoft already faces legal action from investors who allege it did not disclose enough about its AI and cloud spending. Trillium adds that a clear climate plan would likely matter to large institutions that see climate change as a risk to future economic growth.
Microsoft's response
Microsoft told shareholders in another SEC filing to vote against the proposal. It says the proposal does not show that current disclosures fall short. It also says the request goes beyond legal requirements and established voluntary reporting frameworks. In its view, the proposal wants hypothetical scenarios and contingency plans that are uncertain and could change. Microsoft says it will keep relying on its Sustainability Report and other environmental reporting.
What happens next
The vote takes place at the December 8 meeting. The material does not say how likely the proposal is to pass, or what Microsoft would have to do if it does. Microsoft has not said whether its 2030 goal is still on track.
The takeawayMicrosoft's emissions are up 62 percent from 2020, and on December 8 shareholders may ask it to show how it will still reach its 2030 climate goal.