Microsoft And Carbon Direct Set Quality Bar For EACs

In a significant stride toward decarbonising the global construction sector, Microsoft and Carbon Direct have launched a pioneering framework aimed at enhancing the credibility and impact of environmental attribute certificates (EACs) in the concrete and steel industries. These two sectors are among the most carbon-intensive worldwide, largely due to their massive Scope 3 emissions—indirect emissions that occur across the value chain and are often the hardest to measure and manage.

The new guidance, shaped by collaboration with industry suppliers, sustainability organisations, and materials experts, sets out stringent criteria for high-quality EACs. These certificates act as instruments for companies to support the adoption of low-carbon construction materials, especially when they are unable to directly procure greener alternatives. By facilitating investment in more sustainable options, EACs offer a pathway to reduce carbon footprints in complex supply chains.

According to Microsoft’s fuel and materials decarbonisation lead, Julia Fidler, the potential of EACs to unlock scalable solutions for deep decarbonisation is substantial. “EACs have the potential to address a number of the most critical challenges to scaling deep decarbonisation solutions, not least by providing financial certainty,” she explained. “By setting a high bar for EACs, we’re ensuring that our investments drive real, additional, and scalable emissions reductions as we invite the industry to join us in shaping a credible, high-impact market for low-carbon building materials.”

This first-of-its-kind benchmark is not merely theoretical. To qualify under the new standards, environmental attribute certificates must be tied to products that meet or exceed recognized sustainability credentials. For instance, in the cement sector, products must achieve a minimum ‘D’ rating from the Global Cement and Concrete Association. Similarly, in the steel sector, materials must qualify for at least Level 2 certification under ResponsibleSteel’s Progress framework. Such criteria ensure that only genuinely impactful and innovative projects are recognised, rather than those that merely comply with current regulations.

Crucially, the framework prioritises key principles such as verifiability, additionality, and catalytic impact. Verifiability ensures that the claimed emissions reductions can be independently confirmed, while additionality guarantees that these reductions go beyond what would have occurred under existing regulations or business-as-usual scenarios. Catalytic impact, meanwhile, focuses on encouraging broader market transformation by promoting solutions that can be replicated and scaled.

Meera Atreya, Carbon Direct’s director for decarbonisation science and European advisory, emphasised the broader importance of the new standard. “To decarbonise the world’s largest supply chains, we need solutions that are both ambitious and credible,” she said. “These first-of-their-kind criteria set a quality bar for environmental attribute certificates so that every EAC transaction can drive real, additional, and verifiable emissions reductions in concrete and steel.”

The framework’s rollout also marks a key milestone in Microsoft’s broader sustainability journey. The tech giant has pledged to become carbon negative by 2030—a goal that encompasses not just direct emissions but also those embedded throughout its extensive supply network. Its strategy includes design-led reductions in material use, procurement of low-emission alternatives, and an overarching commitment to decarbonising its entire value chain. By spearheading initiatives like this EAC framework, Microsoft is working to accelerate the adoption of sustainable practices far beyond its own operations.

What sets this guidance apart is its dynamic, future-facing approach. The framework will remain a “living document,” evolving in step with emerging data, technological advances, and scientific understanding. This flexibility ensures it can continue to set a relevant and effective standard as the market for low-carbon materials matures and innovates.

The launch of this benchmark also complements other sectoral developments aimed at fostering decarbonisation. For instance, companies like ClimeCo are developing protocols specifically targeting low-carbon cement production, contributing to a growing ecosystem of solutions aimed at curbing emissions in the built environment.

By integrating rigorous standards with actionable market mechanisms, the Microsoft and Carbon Direct initiative not only helps companies navigate the complexities of Scope 3 emissions but also builds confidence in EACs as tools for real-world climate impact. As the construction industry grapples with the imperative to reduce its carbon footprint, frameworks like this represent critical steps toward a more sustainable future.