Microsoft (NASDAQ: MSFT) is stepping deeper into climate action by targeting two of the world’s most emissions-intensive industries: cement and steel. The company invested in Fortera, a U.S. startup making low-carbon cement, and signed new agreements with Stegra, a European producer of green steel.
These efforts support Microsoft’s 2030 goal to become carbon negative and its plan to cut supply chain emissions. Since cement and steel are core to buildings and technology, new solutions in these materials are key to global decarbonization.
Microsoft Backs Green Cement with Fortera
Cement production causes 7–8% of global CO₂ emissions, mainly from heating limestone and powering kilns. Fortera uses a new process that locks carbon into the cement itself. This can cut emissions by up to 60% compared to traditional methods.
Microsoft’s funding supports this innovation and signals corporate demand for cleaner building materials. The company can use green cement for offices, data centers, and infrastructure.
The global green cement market was worth about $28 billion in 2024. It is forecast to nearly double to $60 billion by 2032, growing at a rate of over 9% per year. Demand is rising due to stricter climate rules, more construction, and corporate sustainability targets. Microsoft’s move shows how tech giants can shape this market.
Microsoft and Stegra: Green Steel for Data Centers
Steelmaking is another hard-to-abate sector, responsible for around 7% of global energy-related CO₂ emissions. Traditional steel production uses coal. However, new methods are emerging. Hydrogen-based direct reduction and electric arc furnaces powered by renewable energy offer cleaner alternatives.
Microsoft’s new deals with Stegra aim to secure green steel for its data centers, hardware production, and corporate facilities. Stegra makes steel with renewable electricity and low-emission methods. This cuts emissions by up to 90% compared to regular steel. For Microsoft, this partnership helps reduce Scope 3 emissions, which come from the materials and products in its supply chain.
The global green steel market is just starting out. It’s expected to hit over $760 billion by 2030. This growth is driven by rising demand from construction, automotive, and tech companies. Europe leads in green steel production thanks to strong government policies and carbon pricing. However, the U.S. and Asia are gaining momentum, too.
Corporate Demand and Industry Shifts
Microsoft’s actions reflect a broader shift among global companies. Many are now pushing suppliers to provide low-carbon materials. Science-based climate targets cover not only direct emissions but also entire supply chains.
Key industry shifts include:
- Corporate procurement power: Companies like Microsoft, Apple, and Amazon are committing to buying greener materials, creating demand for innovation.
- Policy drivers: The EU’s Carbon Border Adjustment Mechanism and U.S. Inflation Reduction Act incentives are accelerating clean material adoption.
- Investment flows: Global investment in clean industrial technologies reached over US$150 billion in 2024, according to the International Energy Agency, with strong growth expected through 2030.
This combination of corporate demand, public policy, and capital flows is reshaping industries once seen as difficult to decarbonize.
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Microsoft’s Climate Goals and Broader Impact
Microsoft has set some of the most ambitious climate goals among global technology companies. In 2020, it announced plans to become carbon negative by 2030, meaning it will remove more carbon from the atmosphere than it emits.
By 2050, it aims to erase all of its historical emissions since its founding in 1975. To achieve this, the company is cutting direct emissions. It is also investing in renewable energy, carbon removal technologies, and low-carbon supply chains.
A major part of Microsoft’s plan involves reshaping the materials it uses across its global operations. Steel and cement account for nearly 15% of global carbon emissions. They are essential for data centers, offices, and product supply chains.
By supporting low-carbon producers like Fortera and Stegra, Microsoft is addressing these hard-to-abate sectors. If successful, these partnerships will lower Microsoft’s footprint. They will also create scalable solutions for other companies to adopt.
Microsoft is also driving progress in its broader ecosystem. Its Cloud for Sustainability platform gives businesses tools to track and cut emissions. This creates a vital connection between climate promises and real results. This shows how Microsoft is working on both sides of the challenge: cutting its own emissions while helping other organizations do the same.
The company’s climate strategy is also closely tied to investor expectations. ESG-focused funds now manage more than $600 billion worldwide. Companies with solid net-zero plans are gaining favor among institutional investors.
Microsoft’s ability to show progress gives it an advantage in attracting long-term capital while strengthening its reputation as a leader in climate action.
Outlook: Why Microsoft’s Bets Could Reshape Industries
The global clean materials market is entering rapid growth. The International Energy Agency (IEA) reports that annual clean energy investment hit US$1.8 trillion in 2023. It could reach more than US$4.5 trillion by 2030 if countries meet climate targets.
Cement and steel will be vital. By 2050, they could account for more than 20% of all carbon cuts needed. This makes them top targets for innovation and new business models.
Over 6,000 companies worldwide have now set science-based targets. Many are pressuring their suppliers to deliver cleaner products. This could push demand for green cement and steel far faster than the current supply. Microsoft’s early partnerships put it ahead of the curve.
For Microsoft, the benefits are twofold: lower emissions and reduced risk from future carbon rules. Using cleaner materials in data centers, AI facilities, and logistics will also make its operations more resilient.
The tech giant’s deals with Fortera and Stegra show that green materials are moving beyond small pilots into real, large-scale use. This momentum could reshape whole industries in the years ahead.
