Microsoft's Cloud Hardware Emissions Methodology Overview

This white paper presents Microsoft's Cloud Hardware Emissions Methodology (CHEM), which is designed to measure the embodied carbon of datacenter information and communication technology (ICT) hardware. The methodology integrates process-based life cycle assessment (pLCA), AI tools, and detailed product data to facilitate scalable carbon accounting. The document outlines the challenges of measuring embodied carbon at scale, the operational framework of CHEM, and its applications in supply chain interventions and hardware design optimization. It emphasizes the transition from traditional financial proxies to pLCA, enhancing the ability of teams to prioritize interventions effectively. Key benefits of CHEM include its scalability, automation, and improved data quality, which support targeted decarbonization efforts. The paper also discusses the broader impact of CHEM on the industry, highlighting collaborative efforts to standardize carbon accounting practices and improve data quality across the ICT sector. This initiative aims to support global sustainability goals and enhance the accuracy of emissions tracking.