Microsoft has signed a seven-year agreement with Swedish green hydrogen-based steel producer Stegra to use its steel in Microsoft’s data centres, marking a step toward reducing the company’s Scope 3 emissions.

Under the deal, Microsoft will not purchase the steel directly. Instead, it will acquire Environmental Attribute Certificates (EACs), allowing the tech giant to account for lower indirect carbon emissions in its sustainability reporting.

Suppliers of Microsoft’s data centre equipment will be encouraged to purchase Stegra’s steel at the same price as conventional blast furnace steel. However, these suppliers will not be permitted to make any green claims about the product.

This initiative reflects Microsoft’s on-going commitment to sustainability and its strategy to reduce carbon emissions across its supply chain while supporting innovative green steel technologies.

News source: Hydrogen Insight