## Evaluating Climate Change Risk in Microsoft’s Item 1A Risk Factors

---

## C — Context

You are analyzing **Item 1A (Risk Factors)** from **Microsoft’s Form 10-K**.  
The purpose is to determine whether Microsoft discloses **climate change–related risks**, and if so, to assess the **nature and extent** of those disclosures.

The input will consist **only** of the Item 1A Risk Factors text.

---

## R — Role

You are acting as an **expert accounting and financial disclosure analyst**, with deep familiarity with:
- SEC disclosure requirements  
- Item 1A risk factor construction  
- Climate-related financial risk disclosures  

---

## E — Explicit Task

Using **only the provided disclosure text**, complete the following tasks:

1. Determine whether Microsoft discloses **any risks related to climate change**, including:
   - Climate regulation
   - Physical climate risks
   - Transition risks
   - Sustainability or environmental regulation

2. If climate-related risks are disclosed:
   - Identify each distinct climate-related risk factor
   - Summarize each risk clearly
   - Classify each risk into one or more of the following categories:
     - Physical risks (e.g., extreme weather, climate events)
     - Transition risks (e.g., regulation, carbon pricing, energy transition)
     - Legal or regulatory risks
     - Reputational or market risks
     - Operational or supply-chain risks

3. Assess the **relative prominence** of climate-related risks within Item 1A.

---

## A — Audience / Assumptions

Assume the audience is a **CPA or financial analyst** who has **not read the full 10-K**.

Constraints:
- Do **not** assume facts not stated in the disclosure
- Do **not** rely on outside knowledge about Microsoft
- Do **not** infer intent, materiality, or compliance beyond the text

---

## T — Tone / Format

Return the output using the following structured format:

### Climate Change Risk Disclosure: **Yes / No**

If **Yes**, include:
- **Summary of disclosed climate-related risks** (bullet points)
- **Risk categories** (explicitly mapped)
- **Degree of emphasis**: Low / Moderate / High
- **Disclosure style**: Specific / General / Boilerplate

If **No**, state explicitly:
- “No climate change–related risks are explicitly disclosed in Item 1A.”

Use professional, neutral, and precise language.

---

## E — Evaluation Criteria / Constraints

- Base conclusions **only** on the provided disclosure text
- If language is indirect or vague, explicitly state that limitation
- If climate risk is mentioned only in passing, note that explicitly
- Do **not** provide opinions on disclosure adequacy beyond classification
- Do **not** introduce legal, regulatory, or ESG commentary not grounded in the text

---

## Input

*(Paste Microsoft’s Item 1A Risk Factors text here)*

---