Supplier Code of Conduct (SCoC) and training

Microsoft trusts our suppliers to ensure all their employees working with or on behalf of Microsoft, both with and without network/building access, are trained annually on our Supplier Code of Conduct.

Suppliers can choose from the following methods to meet their SCoC training obligations:

• Suppliers can leverage Microsoft’s SCoC training course (Note: this link does not record course completion status)

• Suppliers can download a SCORM package of Microsoft’s SCoC training course for use in their own LMS (Learning Management System)

• Suppliers can develop their own training method and materials to train their applicable workers on Microsoft’s SCoC content

Suppliers are expected to have appropriate record-keeping systems for their employee SCoC training completions.

Any external staff engaged in services for Microsoft, or who will bill time to Microsoft, or who otherwise work on Microsoft matters are required to complete SCoC training and agree to comply with the SCoC. External staff includes contractors, vendors, business guests, and Outsourced staff.

This requirement is not time specific and applies to anyone working with or on behalf of Microsoft for any period. We trust our suppliers to use appropriate judgement in how to interpret this.

All external staff who are onboarding through Microsoft systems, requiring access, must complete training prior to being granted access to Microsoft’s Corporate Network and/or buildings. As part of the external staff setup process, external staff workers receive an email notification containing a link to complete the online training. Once the external staff worker completes the training, the process for granting access to Microsoft’s Corporate Network and/or buildings will proceed.

Note: In addition to the pre-access/onboarding training requirement managed by Microsoft, suppliers are accountable to train all employees and agents working on Microsoft matters on an annual basis.

For the United States, Canada, or Latin America, please contact supscrn@microsoft.com.

For Asia or EMEA regions, please contact esscrng@microsoft.com.

If suppliers' employees have questions, they should contact their Human Resources department or management directly.

Microsoft can assist with performing a self-pay screen. This will allow for a supplier employee to be screened when the supplier does not have an account set up. The screen will be paid for upon submittal by the person being screened. Suppliers' employee will receive a notification once the screening is complete. If required, the background screening identification number can be provided to the supplier.

Contact supscrn@microsoft.com if you have an onboarding request.

This builds on steps Microsoft has taken to increase workforce inclusion and support employees and their families. We believe that it was the right step for our business.

Paid time off and paid parental leave benefits both employers and employees by contributing to a happier and more productive workforce. We have long recognized that the health, well-being, and diversity of our employees helps Microsoft succeed. That's why we have long provided industry-leading benefits for our employees, including paid time off and paid parental leave. The people who work for our suppliers are critical to our success, and we want them to have these benefits.

Review the paid time off Microsoft blog post.

Review the paid parental leave Microsoft blog post.

To help achieve the company’s broader sustainability goals, Microsoft has implemented additional sustainability requirements for suppliers. The following language is included in our Supplier Code of Conduct requiring suppliers to:

• Disclose complete, consistent, and accurate scope 1, 2, and 3 greenhouse gas (GHG) emissions data and/or components required to calculate GHG emissions data, as well as any relevant ESG data that is reasonably necessary for Microsoft to meet its ESG reporting requirements. Suppliers may also be required to provide independent third-party assurance over such disclosed emissions data.
• Provide and achieve plans to reduce Microsoft delivered goods and services absolute GHG emissions by a minimum of 55% by 2030 or an alternative reduction target pursuant to the baseline established in their Supplier contract or in other written communication with Microsoft.
• Transition to 100% carbon-free electricity for their Microsoft delivered goods and services and target utilizing sustainable Aviation Fuel (SAF), where possible, for Microsoft business related airline travel by 2030, as part of the above plan. For further information and guidance on Microsoft’s carbon-free electricity (CFE) requirements, please see Microsoft’s Supplier CFE Guidance document.
   

We recognize the challenges some suppliers may face in disclosing and reducing GHG emissions and we’re committed to working with suppliers. Additional details, including specific requirements for data disclosure, method, assurance, alternative timelines and/or targets, and achievement of planned reductions will be set forth in their Supplier contract or in other written communication sent by Microsoft to Supplier.

Due to the limited geographic availability of SAF today, a book and claim approach has been developed to support market development of SAF, ensuring traceability of the fuel from its production to its end use with flexibility to separate the sustainability benefits - the environmental attributes - from the physical fuel.

Environmental attribute certificates that are associated with the use of SAF are tracked, purchased, and “claimed” separately, without the buyer needing to be connected directly to the physical fuel supply chain. The purchase of these environmental attributes provides a buyer with a claim to the climate benefit associated with a given volume of physical SAF, while simultaneously helping to cover the cost difference between SAF and conventional jet fuels.

Microsoft is asking suppliers to consider using SAF attribute certificates for Microsoft-related business travel as part of our shared commitment to reducing carbon emissions. Business air travel is a significant contributor to Scope 3 emissions (Category 6), and SAF provides a practical, lower-carbon alternative to conventional jet fuel.

By participating in this initiative, suppliers can:

• Help reduce emissions associated with Microsoft-delivered services.
• Align with Microsoft’s Supplier Code of Conduct goals for a 55% reduction in emissions by 2030.
• Support the broader transition to sustainable aviation by signaling demand for SAF.

This approach offers a flexible, accessible way for suppliers to take meaningful climate action—without needing to change travel behavior or airline providers.

Yes, all SAF attribute certificates should at a minimum meet the published SABA-SAF-Sustainability-Framework-9-23.pdf.

Palm oil or its derivatives, including palm fatty acid distillate (PFAD), are not SABA eligible.  To familiarize yourself with all requirements, please review the resource section of the SABA site.

In the Greenhouse Gas Protocol, GHG emissions are organized into three categories, or “scopes”:

• Scope 1 covers all direct GHG emissions caused by sources owned or controlled directly by your company, (for example, emissions from combustion in owned or controlled boilers, furnaces, vehicles, etc. or emissions from chemical production in owned or controlled process equipment.)

• Scope 2 covers indirect GHG emissions caused by the generation of energy purchased by your company, such as electricity, steam, and heating/cooling.

• Scope 3 covers all other indirect emissions not included in Scope 2 that occur in the value chain of your company both upstream and downstream, (for example, emissions generated by your suppliers during production or your customers during their use of your products.)

In most cases, Scope 3 emissions represent the vast majority of a company’s total GHG emissions, which is why it is critical to include in corporate emissions reduction targets.

Yes. During our feedback sessions, we heard from suppliers that a lot of existing resources are quite technical. As such, we have developed some introductory sustainability learning resources designed to help our suppliers measure and report their GHG emissions, develop clean energy strategies and reduce their energy-related emissions. These are available publicly on Tools and resources - Microsoft sustainability: 

• GHG Emissions Accounting 
• Energy efficiency 
• Renewable energy procurement
   

 Additional GHG accounting resources: 

• View the GHG Protocol 
• Use the EPA GHG Emissions Calculator 
• Learn more about Microsoft Cloud-based Carbon Emissions
   

Additional GHG reduction resources: 

• Visit the SME Climate Hub 
• Learn about the Clean Energy Buyers’ Association (Microsoft suppliers are eligible for certain member benefits. Please contact supplychain@cebuyers.org to inquire.)
   

Learn about The Climate Group’s RE100, EP100, EV100 and SteelZero programs

Our Climate Innovation Fund has committed to investing $1 billion over four years into new carbon emissions reduction technologies.

We focus our funding on investments primarily based on four criteria: (1) strategies that have the prospect of driving meaningful decarbonization, climate resilience, or other sustainability impact; (2) additional market impact in accelerating current and potential solutions; (3) relevance to Microsoft by creating technologies we can use to address our unpaid climate debt and future emissions; and (4) consideration of climate equity, including for developing economies.

Learn more about the Climate Innovation Fund

We heard from suppliers that measuring, reporting, and reducing greenhouse gas emissions require a great deal of time and expertise, especially for organizations new to the process.  We therefore intend to take a phased approach in rolling out these disclosure and reduction requirements to our suppliers. 

As such, your company’s specific requirements for emissions data disclosure, assurance, reduction targets, and achievement of planned reductions, including the timing of conformance, will be set forth in your supplier contract or in other written communication with Microsoft.* 

  *If, prior to July 2020, you were contractually required by Microsoft to submit your carbon emissions, then you will need to continue to meet any deadlines relevant to your contract.

All supplier categories are in scope to obtain written permission to use subcontractors on any Microsoft engagement. The supplier must request from the Microsoft business owner’s approval to use a subcontractor for each engagement. There are no blanket approvals for suppliers to use subcontractors beyond the specific, approved engagement.

Approval can be provided or removed at any time during the engagement via a SOW Amendment and/or Change Order. Written approval to use subcontractors on an engagement expires on the SOW termination date unless a new SOW and/or written permission is provided.