Supplier Code of Conduct (SCoC) and training

Microsoft trusts our suppliers to ensure that all of their employees working with or on behalf of Microsoft, both with and without network/building access, are trained annually on our Supplier Code of Conduct.

Suppliers can choose from the following methods to meet their SCoC training obligations:

• Suppliers can leverage Microsoft’s SCoC training course (Note: this link does not record course completion status)

• Suppliers can download a SCORM package of Microsoft’s SCoC training course for use in their own LMS (Learning Management System)

• Suppliers can develop their own training method and materials to train their applicable workers on Microsoft’s SCoC content

Any external staff engaged in services for Microsoft, or who will bill time to Microsoft, or who otherwise work on Microsoft matters are required to complete SCoC training and agree to comply with the SCoC. External staff includes contractors, vendors, business guests, and Outsourced staff.

This requirement is not time specific and applies to anyone working with or on behalf of Microsoft for any period. We trust our suppliers to use appropriate judgement in how to interpret this.

Suppliers can choose from the following methods to meet their SCoC training obligations:

• Suppliers can leverage Microsoft’s SCoC training course (Note: this link does not record course completion status)

• Suppliers can download a SCORM package of Microsoft’s SCoC training course for use in their own Learning Management System (LMS)

• Suppliers can develop their own training method and materials to train their applicable workers on Microsoft’s SCoC content

All external staff who are onboarding through Microsoft systems, requiring access, must complete training prior to being granted access to Microsoft’s Corporate Network and/or buildings. As part of the external staff setup process, external staff workers receive an email notification containing a link to complete the online training. Once the external staff worker completes the training, the process for granting access to Microsoft’s Corporate Network and/or buildings will proceed.

Note: In addition to the pre-access/onboarding training requirement managed by Microsoft, suppliers are accountable to train all employees and agents working on Microsoft matters on an annual basis.

The Americas screening accounts do not support screening in the Asia or EMEA regions. To learn more about background screenings in Asia or EMEA, review this FAQs PDF. 

You may also contact esscrng@microsoft.com for inquiries related to background screenings for external staff working in the Asia or EMEA regions.

Suppliers will receive training materials from the background screening supplier on how to initiate a background screen.

Upon account set up, suppliers shall designate a representative to upload their employees' contact information to the background screening supplier's online platform. The system will initiate an email request to employees' inbox.

Employees will then input their personal information required for a background screening. Thereafter, the background screening supplier conducts the research and reports results via its online platform.

If discrepant or derogatory information is discovered, it will be viewable by the suppliers' designated representative and Microsoft Global Security only.

Employees can request a copy of their background screening report and the supplier shall be responsible to provide it.

Background checks typically take the following average times to conduct; however, there are exceptional circumstances that can take longer or shorter turnaround times to produce.

• 3–5 business days in the United States
  
  
• Up to 7 business days in Canada
  
  
• Up to 18 business days in Mexico
  
  
• 5-10 business days in other LATAM countries
   

Suppliers should communicate tentative start dates accordingly.

Microsoft can assist with performing a self-pay screen. This will allow for a supplier employee to be screened when the supplier does not have an account set up. The screen will be paid for upon submittal by the person being screened. Suppliers' employee will receive a notification once the screening is complete. If required, the background screening identification number can be provided to the supplier.

Contact supscrn@microsoft.com if you have an onboarding request.

When considering information in an individual's background, suppliers should abide by the laws within the jurisdiction their employee is being considered for placement. If in doubt, consult with your employment law advisors. When considered for placement at Microsoft, individuals should demonstrate a history of conduct that is trustworthy and reliable and does not pose a threat of risk to people, property, or proprietary information. The supplier must determine whether the background screening report contains information such as criminal convictions or other matters that render the individual unsuited to perform work connected to Microsoft. Examples of convictions that may be reasonably related and should be reviewed by the supplier include but are not limited to: crimes of dishonesty (that is, theft, embezzlement, fraud, forgery, etc.) and crimes of violence (that is, murder, rape, kidnapping, assault, robbery, stalking, harassment, etc.).

Supplier must certify that it has conducted pre-placement checks consistent with the Supplier Preplacement Policy and that any convictions, serious delinquency or debt, or any other matters disclosed in the background check that may render the individual unsuitable for placement at Microsoft has been reviewed by the supplier, and that the supplier has determined that the individual is suited for access to Microsoft owned or leased facilities or access to Microsoft virtual resources such as email and corporate network access.

Microsoft reserves the right to review and discuss with suppliers, in a manner consistent with applicable law, pre-placement background information for any individual submitted for placement suitability by suppliers who may require physical access to Microsoft owned or leased facilities or virtual access to Microsoft resources such as email and corporate network access. Based on that review, Microsoft may prohibit access as it deems appropriate to any individual submitted for placement by suppliers. The supplier background screening representative will be notified of Microsoft's suitability decision.

The background screen cost can vary depending on fees incurred by the background screening provider while conducting the screen. Different jurisdictions and courts may charge fees; however, on average, the cost of a background screen is approximately $40 in the United States. 

Contact supscrn@microsoft.com for background screen pricing in Canada and LATAM.

Please contact Microsoft’s Supplier Screening Program with any questions related to the background screening process. Email supscrn@microsoft.com.   

 If suppliers' employees have questions, they should contact their Human Resources department or management directly.

We require companies that do business with Microsoft in the United States:

• To provide their employees physically located in the U.S. with at least 15 days of paid leave each year. This requirement applies to suppliers with 50 or more employees in the United States and to their employees who have worked for them for at least 1500 hours in the prior 12 months and who require access to Microsoft’s network and/or facilities.
  
  
• To staff Microsoft projects only with W2 employees of their companies, and not independent contractors, when access to Microsoft’s network and/or facilities is required.
  
  
• To provide employee health benefits that comply with the Patient Protection and Affordable Care Act of 2010 (the “ACA”) to their employees physically located in the U.S., who work for them 30 or more hours per week and who are staffed on Microsoft projects when access to Microsoft’s network and/or facilities is required.
  
  

• To provide their employees physically located in the U.S. with at least 12 weeks of paid parental leave at 66% of pay with a cap of $1,000 per week or commensurate with Washington state’s paid family leave law. This paid parental leave requirement applies to suppliers with more than 50 employees in the United States and to their employees who have worked for them for at least 1500 hours in the prior 12 months and who require access to Microsoft’s network and/or facilities.

This builds on steps Microsoft has taken to increase workforce inclusion and support employees and their families. We believe that it was the right step for our business.

Paid time off and paid parental leave benefits both employers and employees by contributing to a happier and more productive workforce. We have long recognized that the health, well-being, and diversity of our employees helps Microsoft succeed. That's why we have long provided industry-leading benefits for our employees, including paid time off and paid parental leave. The people who work for our suppliers are critical to our success, and we want them to have these benefits.

Review the paid time off Microsoft blog post.

Review the paid parental leave Microsoft blog post.

To help achieve the company’s broader sustainability goals, Microsoft has implemented additional sustainability requirements for suppliers. The following language is included in our Supplier Code of Conduct requiring suppliers to:

• Disclose complete, consistent, and accurate scope 1, 2, and 3 greenhouse gas (GHG) emissions data and/or components required to calculate GHG emissions data. Suppliers may also be required to provide independent third-party assurance over such disclosed emissions data.
• Provide and achieve plans to reduce Microsoft delivered goods and services absolute GHG emissions by a minimum of 55% by 2030 or an alternative reduction target pursuant to the baseline established in their Supplier contract or in other written communication with Microsoft.
• Transition to 100% carbon-free electricity for their Microsoft delivered goods and services by 2030, as part of the above plan. For further information and guidance on Microsoft’s carbon-free electricity (CFE) requirements, please see Microsoft’s Supplier CFE Guidance document.
   

We recognize the challenges some suppliers may face in disclosing and reducing GHG emissions and we’re committed to working with suppliers. Additional details, including specific requirements for data disclosure, method, assurance, alternative timelines and/or targets, and achievement of planned reductions will be set forth in their Supplier contract or in other written communication sent by Microsoft to Supplier.

In the Greenhouse Gas Protocol, GHG emissions are organized into three categories, or “scopes”:

• Scope 1 covers all direct GHG emissions caused by sources owned or controlled directly by your company, (for example, emissions from combustion in owned or controlled boilers, furnaces, vehicles, etc. or emissions from chemical production in owned or controlled process equipment.)

• Scope 2 covers indirect GHG emissions caused by the generation of energy purchased by your company, such as electricity, steam, and heating/cooling.

• Scope 3 covers all other indirect emissions not included in Scope 2 that occur in the value chain of your company both upstream and downstream, (for example, emissions generated by your suppliers during production or your customers during their use of your products.)

In most cases, Scope 3 emissions represent the vast majority of a company’s total GHG emissions, which is why it is critical to include in corporate emissions reduction targets.

Yes. During our feedback sessions, we heard from suppliers that a lot of existing resources are quite technical. As such, we have developed some introductory sustainability learning resources designed to help our suppliers measure and report their GHG emissions, develop clean energy strategies and reduce their energy-related emissions. These are available publicly on Tools and resources - Microsoft sustainability: 

• GHG Emissions Accounting 
• Energy efficiency 
• Renewable energy procurement
   

 Additional GHG accounting resources: 

• View the GHG Protocol 
• Use the EPA GHG Emissions Calculator 
• Learn more about Microsoft Cloud-based Carbon Emissions
   

Additional GHG reduction resources: 

• Visit the SME Climate Hub 
• Learn about the Clean Energy Buyers’ Association (Microsoft suppliers are eligible for certain member benefits. Please contact supplychain@cebuyers.org to inquire.)
   

Learn about The Climate Group’s RE100, EP100, EV100 and SteelZero programs

Our Climate Innovation Fund has committed to investing $1 billion over four years into new carbon emissions reduction technologies. 

  We focus our funding on investments primarily based on four criteria: (1) strategies that have the prospect of driving meaningful decarbonization, climate resilience, or other sustainability impact; (2) additional market impact in accelerating current and potential solutions; (3) relevance to Microsoft by creating technologies we can use to address our unpaid climate debt and future emissions; and (4) consideration of climate equity, including for developing economies. 

Learn more about the Climate Innovation Fund

We heard from suppliers that measuring, reporting, and reducing greenhouse gas emissions require a great deal of time and expertise, especially for organizations new to the process.  We therefore intend to take a phased approach in rolling out these disclosure and reduction requirements to our suppliers. 

As such, your company’s specific requirements for emissions data disclosure, assurance, reduction targets, and achievement of planned reductions, including the timing of conformance, will be set forth in your supplier contract or in other written communication with Microsoft.* 

  *If, prior to July 2020, you were contractually required by Microsoft to submit your carbon emissions, then you will need to continue to meet any deadlines relevant to your contract.

All supplier categories are in scope to obtain written permission to use subcontractors on any Microsoft engagement. The supplier must request from the Microsoft business owner’s approval to use a subcontractor for each engagement. There are no blanket approvals for suppliers to use subcontractors beyond the specific, approved engagement.

Approval can be provided or removed at any time during the engagement via a SOW Amendment and/or Change Order. Written approval to use subcontractors on an engagement expires on the SOW termination date unless a new SOW and/or written permission is provided.