Microsoft, Amazon & SAP: What are Sustainability Strategies?

Nearly 90% of the world’s largest companies publish some form of sustainability report or ESG disclosure according to KPMG.

Often, these examine progress on a company’s sustainability strategy.

In a survey of more than 300 companies, Morgan Stanley found that 85% see it as a value creation opportunity.

“Sustainability strategies and core business strategies are converging,” says Jessica Alsford, Chief Sustainability Officer at Morgan Stanley. 

“Companies increasingly see sustainability factors as integral to the company’s long-term value creation.”

How sustainability strategies are made

To make a strategy, businesses first need to understand their sustainability impact. 

Materiality analysis can be used to identify and prioritise the most impactful ESG issues for the business and its stakeholders. 

Engaging stakeholders can help to understand their views on what is most important and this process can help to align the sustainability strategy with business goals and societal expectations. 

Materiality analysis is being required under some regulations like the EU CSRD. 

Targets can then be set to address any issues identified, followed by a plan to take action and achieve these. 

Progress towards these goals can then be tracked and reported on. 

Some companies may use established frameworks to structure and benchmark their approach such as GRI, SASB or the UN SDGs. 

What is inside sustainability strategies?

Typically, a corporate sustainability strategy will include environmental and social sustainability alongside economic and governance priorities. 

This can include reporting progress on reducing carbon emissions, minimising waste, conserving natural resources and transitioning towards renewable energy and circular economy principles. 

Companies aiming to reduce Scope 3 emissions often make plans with the businesses included in their supply chains.

Often, sustainability strategies will define how sustainability supports the overall corporate strategy and articulate a forward-looking vision. 

In Microsoft’s 2025 Environmental Sustainability Report, Vice Chair and President Brad Smith and Chief Sustainability Officer Melanie Nakagawa said: “We are sharing details about the progress made in each of our core commitment areas: carbon negative, water positive, zero waste and protecting ecosystems. 

“Our report also highlights a number of our breakthrough innovations, drawing insights from the leading edge of climate innovation.”

Microsoft, for example, is working towards becoming carbon negative, water positive and zero waste by 2030. 

Its strategy looks to support these goals alongside business growth.

The benefits of sustainability strategies

Research from Harvard Business School shows that companies integrating sustainability deeply outperform peers in stock market returns and accounting metrics. 

Gartner research found that 85% of investors considered ESG factors in their investments in 2020 and a majority of banks monitor the ESG performance of investments. 

Morgan Stanley research shows that a significant majority of businesses see sustainability as a value creation opportunity in corporate strategy. 

“Sustainability as an investment theme continues to evolve towards more nuance and rigor as investors must confront competing priorities – such as climate and the social costs of high energy prices – and focus on "real" impact,” says Melissa James, Managing Director and Vice Chairman of Morgan Stanley Global Capital Markets.

“As a consequence, companies continue to engage on the topic of accessing capital to finance their sustainability goals and initiatives. 

“As we approach deadlines for various climate commitments from corporates and investors, there will be a continued push for financing clean tech and facilitating the energy transition, resulting in a natural maturation of the market.”

Leading companies’ sustainability strategies

Microsoft

Microsoft’s sustainability strategy is focussed on its aims for 2030:

• Carbon negative
• Water positive
• Zero waste
• Protecting ecosystems

The company says it conducts lifecycle assessments across its operations, assets and products and is committed to accelerating markets, scaling solutions across its value chain and being transparent about progress. 

Microsoft’s 2025 Environmental Sustainability Report says that the company is committed to providing innovative technology to help progress sustainability. 

“Microsoft’s actions alone cannot solve the climate crisis,” the report reads.

“As a global technology leader, we are also committed to helping develop the market conditions and standards and launch solutions that will support a net zero economy.”

Amazon

It is estimated that Amazon ships more than 1,000 packages per minute around the world.

While Amazon’s 2024 Sustainability Report shows a rise in absolute emissions, it also shows the efforts it is making across ESG to reduce its negative impact. 

“Looking ahead, we recognise that the path to being a more sustainable company will never be linear, because we’re charting new territory at an unprecedented scale,” says Kara Hurst, Chief Sustainability Officer at Amazon, in the report. 

“While we are firm on our goals, our approach will continuously evolve with emerging challenges and opportunities, as we’re seeing with the rapid adoption of AI. 

“No matter what we’re faced with in the future, we’ll remain steadfast in our commitment to sustainability and will continue to invest, innovate and obsess over our progress each year, with the same intensity and focus that has defined Amazon from Day One.”

Amazon aims to reach net zero carbon emissions across its global operations by 2040, but has faced a rise in emissions from 2023 from 64.38 MtCO₂e to 68.25 MtCO₂e.

However, its grams of carbon dioxide equivalent per dollar of gross merchandise sales decreased from 75.6g CO₂3/$GMS to 72.6g CO₂e/$GMS.

SAP

Sophia Mendelsohn, Chief Sustainability and Commercial Officer at SAP, says: “Really good sustainability goals are always based on what your stakeholders want to see from the business.

“In our case, we know customers, investors and our communities are looking to SAP to explain and reduce their carbon emissions.

“The main challenges in reducing carbon emissions are not necessarily the emissions themselves – it is the people. 

“They're the change management around the emissions reduction that has to line up with your business incentives and needs.”