Climate Change Data

Environmental Metrics

ESG Focus Areas

• Employee well-being
• Environment
• Social impact
• Education
• Diversity and Inclusion
• Product Accessibility
• Waste Management
• Energy Efficiency
• Responsible Supply Chain

Environmental Achievements

• Reduced normalized greenhouse gas emissions by 2.5% (FY2006 vs FY2005)
• Purchased over 17.5 million kilowatt hours of renewable energy
• Recovered and processed 4,516 tons of equipment, with only 0.9% sent to landfill
• Achieved ISO 14001 certification at eight sites, covering 64% of employees

Social Achievements

• Improved employee satisfaction from 81% to 85%
• Invested $115.5 million in social impact initiatives
• 160,000 employee volunteer hours
• Reached 474,679 students through Networking Academy programs
• Launched 21st Century Schools initiative with a $40 million investment
• Middle Eastern Women Gain Business Experience program

Governance Achievements

• Established a Citizenship Council and a Stewardship Council to oversee citizenship efforts
• Consistently reviewed and improved privacy policy
• Complied with all U.S. government regulations prohibiting product sales to certain destinations or users

Climate Goals & Targets

Environmental Challenges

• Increasing energy consumption and greenhouse gas emissions due to business growth
• Managing e-waste and complying with evolving regulations (e.g., WEEE, RoHS)
• Balancing employee flexibility with business needs

Mitigation Strategies

• Ongoing energy efficiency programs and renewable energy procurement
• In-house management of take-back and recycling programs
• Implementing flexible work arrangements to improve productivity and reduce commuting

Supply Chain Management

Responsible Procurement

• Cisco Supplier Code of Conduct
• Electronic Industry Code of Conduct (EICC)

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, UN Global Compact

Certifications: ISO 14001

Sustainable Products & Innovation

• Energy-efficient networking equipment

Awards & Recognition

• Helen Keller Achievement Award

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Accountability and Responsibility
• Responsible Management and CSR Governance
• CSR, Business Resiliency, and Responsible Risk Management
• Supplier Diversity
• Stakeholder Engagement
• Education
• Environment
• Human Needs

Environmental Achievements

• Reduced GHG emissions from air travel year-over-year despite business growth.
• Implemented Cisco Connected Workplace, reducing energy load by 44% in one building.
• Recycled 10,249 metric tons of electronics materials (44% increase over FY07).
• Reduced energy consumption by 23% in Australian operations over two years.
• More than 80% waste diversion rate at San Jose headquarters.

Social Achievements

• Cisco Networking Academy reached more than 700,000 students in over 160 countries.
• Launched the Egypt Education Initiative, training over 109,000 teachers and administrators.
• Implemented the Rajasthan Education Initiative, providing IT skills to students.
• Partnered with the Clinton Global Initiative for Sub-Saharan Africa, committing $10 million.
• Community Voice Mail provided services to over 165,000 individuals.

Governance Achievements

• Board of Directors adopted majority voting for uncontested elections of directors.
• Majority of Board members are independent of management.
• Established a highly regarded code of business conduct (Grade “A” from Ethisphere Council).
• Implemented measures to align management interest with shareholders (stock ownership guidelines, compensation recoupment policy).

Climate Goals & Targets

Environmental Challenges

• Reducing GHG emissions from air travel in sales and field service organizations.
• Incomplete data in prior years for GHG emissions reporting.
• Lack of green power availability in some emerging markets.
• Managing a complex global supply chain for environmental and social responsibility.

Mitigation Strategies

• Deployment of Cisco TelePresence and other collaborative technologies.
• Improved data collection and analysis methodology for GHG emissions.
• Purchasing RECs and REGOs to offset emissions where renewable energy is available.
• Implementation of Supplier Code of Conduct and third-party audits.

Supply Chain Management

Supplier Audits: Approximately 20 third-party audits in FY08.

Responsible Procurement

• Cisco Supplier Code of Conduct (aligned with EICC code).

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products and solutions.

Reporting Standards

Frameworks Used: Global Reporting Initiative (GRI), United Nations Global Compact (UNGC)

Certifications: ISO 14001 (20 sites)

UN Sustainable Development Goals

• Goal 1: No Poverty
• Goal 3: Good Health and Well-being
• Goal 7: Affordable and Clean Energy
• Goal 8: Decent Work and Economic Growth
• Goal 13: Climate Action

Various initiatives contribute to these goals through education, community development, and environmental sustainability efforts.

Sustainable Products & Innovation

• Energy-efficient networking devices and collaboration solutions.

Awards & Recognition

• Ethisphere Magazine’s “world’s most ethical companies” (2008)
• DiversityBusiness.com’s top 50 companies providing multicultural business opportunities.
• Working Mother magazine’s Top 100 companies (2007)
• Human Rights Campaign’s Corporate Equality Index score of 100% (2008).

Environmental Metrics

ESG Focus Areas

• Employees
• Corporate Governance
• Environment
• Society

Environmental Achievements

• Reduced global Scope 1 and 2 GHG emissions by 40% absolute compared to FY07
• Reduced GHG emissions from all Cisco business air travel worldwide by 39% compared to FY06 (exceeding the 10% goal)
• Achieved Gold LEED certification for the Cisco LifeConnections Center
• Reused or recycled all returned electronics, with only 0.44% of materials sent to landfill

Social Achievements

• Launched the Cisco LifeConnections Center, an integrated childcare, medical center, and fitness facility
• Implemented the Cisco Center for Collaborative Leadership to transform leadership
• Centralized manager and employee learning and development
• Launched the Inclusive Advocacy Program to increase opportunities for advancement for globally diverse high-potential employees
• Increased employee satisfaction to 90% (up from 86% in 2008)

Governance Achievements

• Evolved to a collaborative management model
• Implemented a comprehensive REACH compliance program
• Established a robust ethics program, overseen by Cisco’s Ethics Office
• Named one of the World’s Most Ethical Companies by the Ethisphere Institute for a second year running

Climate Goals & Targets

Environmental Challenges

• Economic downturn impacting hiring and investments
• Reducing GHG emissions from electricity use
• Rolling out programs across the company
• Managing risk in a complex global supply chain
• Maintaining business continuity during potential disruptions

Mitigation Strategies

• Implemented initiatives and policies to ensure a leading role in the eventual economic upturn
• Increased energy efficiency of labs, data centers, and office facilities; decreased indirect emissions associated with business travel; supported development of renewable and low-carbon electricity
• Implemented standardized processes and best-practice sharing across Cisco facilities
• Implemented a worldwide alert service to monitor potential disruptions in the value chain; conducted regular performance reviews with suppliers
• Developed a global, multitiered crisis management structure; implemented business continuity plans

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Cisco Supplier Code of Conduct
• EICC Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Regulatory changes, market access risks

Opportunities

• Development of energy-efficient products and solutions

Reporting Standards

Frameworks Used: Global Reporting Initiative (GRI), United Nations Global Compact

Certifications: ISO 14001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 13 (Climate Action)

Cisco's initiatives contribute to these goals through energy efficiency, renewable energy, and climate change mitigation solutions

Sustainable Products & Innovation

• Cisco EnergyWise
• Cisco TelePresence
• Cisco WebEx
• Cisco Virtual Office
• Smart Grid solutions
• Smart Connected Buildings

Awards & Recognition

• Barron's World's Most Respected Companies
• CRO 100 Best Corporate Citizens
• Fortune World's Most Admired Companies
• Ethisphere World's Most Ethical Companies
• Great Place to Work Institute awards
• Working Mother Magazine awards
• DiversityInc awards
• NAFE Top 50 Companies

Environmental Metrics

ESG Focus Areas

• Governance and Ethics
• Value Chain
• Our People
• Society
• Environment

Environmental Achievements

• Reduced packaging material by 1200 metric tonnes in FY11 and a total of 3000 metric tonnes over the last three years.
• Conserved approximately 16.9 million kWh of energy and avoided GHG emissions by 7400 metric tonnes CO2e through an investment of US$1.9 million in energy conservation projects.
• Reduced GHG emissions from business air travel by almost 40 percent on an absolute basis compared to FY07.
• Achieved LEED certification for 23 Cisco facilities, 15 of them Gold or Platinum status.

Social Achievements

• Made US$295 million in combined cash and in-kind contributions (3.77% of earnings before income tax).
• Employees volunteered 166,445 hours.
• Cisco Networking Academy enrolled more than 1 million students.
• Opened a new childcare center in Bangalore, India.

Governance Achievements

• Reinforced ethical conduct and strong corporate governance.
• Simplified organizational and operating model.
• Reduced annual costs by US$1 billion.

Climate Goals & Targets

Environmental Challenges

• Economic downturn impacting workforce and operations.
• Supply chain disruptions (implied by audits revealing labor, health, and safety issues).
• Meeting increasing stakeholder expectations for transparency on social and environmental issues.
• Water scarcity and water quality issues in the supply chain.

Mitigation Strategies

• Implemented a comprehensive action plan to simplify the organization and reduce operating expenses.
• Worked with suppliers on corrective action plans to resolve audit findings.
• Increased focus on stakeholder engagement and transparency in reporting.
• Commissioned third-party audits of suppliers to address environmental concerns, implemented corrective actions, and shared guidance with other suppliers.

Supply Chain Management

Supplier Audits: Series of audits completed in FY11, focusing on labor, health, and safety.

Responsible Procurement

• Supplier Code of Conduct
• EICC Code of Conduct
• Sustainability criteria integrated into scorecard for preferred suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products
• Reducing energy consumption and GHG emissions

Reporting Standards

Frameworks Used: GRI, UN Global Compact

Certifications: ISO 14001

Third-party Assurance: Internal verification

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• EnergyWise
• Cisco Connected Workplace
• Cisco TelePresence
• Virtualization technologies
• Smart grid products

Awards & Recognition

• Ethisphere’s World’s Most Ethical Companies 2011
• Greenpeace’s Cool IT Challenge #1 ranking
• CDP’s top IT company ranking
• Computerworld Honors Program recognition for education programs
• State Department Award for Corporate Excellence

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Reduced all Scope 1, 2, and business-air-travel-related Scope 3 GHG emissions worldwide by 25 percent absolute by 2012 (from a 2007 baseline).
• Conserved approximately 15.6 million kWh of energy and avoided 7,300 metric tonne CO2e through an investment of $1.6 million in energy conservation projects in FY12.
• Reduced 466 metric tonne of corrugated cardboard, plastic, and paper in shipments in FY12 through packaging improvement projects.

Social Achievements

• Launched a web-based course on green initiatives for product development employees (over 1400 completed the training).
• Developed a web-based training module on sustainability and the Supplier Code of Conduct for employees who engage regularly with suppliers.
• Expanded the use of electric vehicle charging stations to multiple locations, resulting in savings of 4415 gallons of fuel, $11,204 in fuel costs, and 23,622 pounds of CO2e in GHG emissions in FY12.

Governance Achievements

• Integrated sustainability criteria into the overall business scorecard for preferred suppliers (representing 5-8% of the total score).
• Maintained ISO 14001 certification for sites with significant potential for environmental impact.
• No significant fines or penalties greater than US$10,000 in the past five years.

Climate Goals & Targets

Environmental Challenges

• Growing carbon footprint of operations as emerging markets adopt ICT and the number of user or consumer-premises equipment increases.
• Need to prevent average electricity emission factors from increasing as Cisco grows in emerging markets where low-carbon electricity is not readily available.
• Challenge to promote awareness of take-back and recycling programs among channel partners and customers.

Mitigation Strategies

• Deployment of global space policy and Cisco Connected Workplace to increase office space utilization and enable remote collaboration.
• Implementation of a global program to reduce electricity consumption in labs through infrastructure improvements, power monitoring technologies, and employee engagement.
• Purchase of electricity from certified low-carbon and renewable sources where available.
• Use of Cisco remote collaboration technologies to reduce business air travel and employee commuting.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• EICC Code of Conduct, Cisco Controlled Substances Specification, sustainability criteria in preferred supplier scorecards.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products and solutions.

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 14001

Third-party Assurance: WSP Environment & Energy (limited assurance for GHG inventory)

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• EnergyWise, Cisco Connected Workplace, remote collaboration technologies, Energy STAR qualified set-top boxes.

Awards & Recognition

• #2 on Greenpeace Cool IT Challenge Leaderboard, #1 IT company by CDP

Environmental Metrics

ESG Focus Areas

• Governance and Ethics
• Supply Chain
• Our People
• Society
• Environment

Environmental Achievements

• Achieved FY12 Scope 1, 2, and business-air-travel Scope 3 GHG emissions reduction goal of 25 percent absolute.
• Cut 634 metric tonnes of packaging and saved $7.7 million in material and freight costs by improving packaging efficiency.
• Purchased 425 million kWh of energy through Renewable Energy Certificates in FY13.
• Achieved a 28 percent absolute reduction in Scope 1 and 2 GHG emissions worldwide from a FY07 baseline.
• Customers returned 12,539 metric tonnes of Cisco products for reuse and recycling, and reused over $360 million of Cisco equipment.

Social Achievements

• Cisco employees and dependents earned more than $13.4 million in health incentives for participating in wellness programs.
• Launched a Diverse Interviewer Panel initiative to increase the likelihood of recruiting diverse candidates.
• Spent US$153 million on more than 3.1 million hours of learning and development activities for our employees.
• Opened a new LifeConnections Health Center on our Bangalore Campus.
• Employees volunteered 129,000 hours to support their communities, up 20 percent from FY12.
• Cisco and our employees responded to emergencies and natural disasters across the globe with over $2.49 million in direct aid and communications support from our Tactical Operations team.
• Cisco and the Cisco Foundation provided a total of US$297 million to community programs in cash and in-kind contributions.

Governance Achievements

• 100 percent of eligible employees completed certification to the Cisco Code of Business Conduct.
• Formalized our human rights policy in alignment with the UN Guiding Principles on Business and Human Rights.
• Engaged with organizations that are setting best practices in CSR reporting and disclosure, such as the Global Reporting Initiative and the Sustainability Accounting Standards Board.

Climate Goals & Targets

Environmental Challenges

• Employee survey highlights recognition and development opportunities as key challenges.
• Need for an overall picture of Cisco’s supply chain.
• Need to analyze data from supplier reporting more effectively to create impact.

Mitigation Strategies

• Addressing recognition and development opportunities in FY14.
• Working to improve sustainability standards and performance throughout the supply chain by embedding sustainability into core business practices, engaging with suppliers to improve performance, and partnering to build capability.
• Continuing to engage with stakeholders to improve CSR programs.

Supply Chain Management

Supplier Audits: Audit half of our high-risk manufacturing facilities and one-third of our high-risk component suppliers in FY13

Responsible Procurement

• Supplier Code of Conduct
• Sustainability criteria in Cisco’s supplier scorecards

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Innovation in products and services that promote energy efficiency and waste reduction

Reporting Standards

Frameworks Used: Global Reporting Initiative, Sustainability Accounting Standards Board

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Energy-efficient products
• Remote collaboration solutions

Awards & Recognition

• Ranked number 42 on the Fortune “100 Best Companies To Work For” list
• Ranked sixth among U.S. companies for our commitment to supplier diversity by DiversityBusiness.com

Environmental Metrics

ESG Focus Areas

• Governance and Ethics
• Supply Chain
• Our People
• Society
• Environment

Environmental Achievements

• Reduced total Cisco Scope 1 and 2 GHG emissions worldwide by 30% absolute from a FY07 baseline.
• Saved 1494 metric tonnes of GHG emissions, 888 metric tonnes of material, and US$6.3 million annually through the Pack It Green packaging program.
• Transported products by sea rather than air where possible, saving 70,000 metric tonnes of GHG emissions.
• Customers returned 12,180 metric tonnes of Cisco products for reuse and recycling, and we reused over $360 million of Cisco equipment.

Social Achievements

• Launched Connected Recognition, a program for employees to recognize colleagues for exhibiting Cisco values.
• Introduced an enhanced Occupational Health and Safety management system.
• Launched more ways to support career development, including a Career Development website, Career Days, and Career Advisory program.
• Cisco Networking Academy program helped 1 million students; 88% say the training helped them find a new or better job or an educational opportunity.
• Employees volunteered 136,000 hours to support their communities.

Governance Achievements

• 100% of eligible employees completed certification to the Code of Business Conduct.
• Cisco has been named one of the World’s Most Ethical Companies for seven years running by the Ethisphere Institute.
• Updated CSR materiality assessment based on input from 24 internal and external stakeholders.

Climate Goals & Targets

Environmental Challenges

• Excessive working hours in the supply chain.
• Exploitation of student workers in China.
• Engaging component suppliers on sustainability.
• Improving Cisco Performance Connection (employee performance management).
• Increasing ethnic diversity among employees.

Mitigation Strategies

• Closely monitoring working hours through supplier scorecards and audits; engaging with suppliers to understand and manage factors contributing to excessive overtime.
• Partnering with Nanjing University and an NGO to develop a toolkit for responsible management of student interns in China.
• Providing targeted training for suppliers and training Cisco supplier managers on sustainability.
• Conducting extensive analysis to understand employee concerns and testing alternative processes for performance management; planning to launch a new performance management process in FY15.
• Focusing on attracting and developing talent and providing an inclusive culture that encourages retention; partnering with professional organizations to accelerate ethnicity strategy.

Supply Chain Management

Supplier Audits: 34 audits in FY14

Responsible Procurement

• EICC Supplier Code of Conduct, Cisco Controlled Substances Specification, Conflict Minerals Policy

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI G3.1

Certifications: ISO 14001

Third-party Assurance: Internal and external audits; third-party assurance for goal-related data

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Energy-efficient products, products incorporating DfE principles

Awards & Recognition

• World’s Most Ethical Companies, CDP Global 500 Climate Change Leaders, Dow Jones Sustainability Index, FTSE4Good Index, Global 100 Most Sustainable Corporations

Environmental Metrics

ESG Focus Areas

• Governance and Ethics
• Our People
• Society
• Environment
• Supply Chain

Environmental Achievements

• Reduced Scope 1 and 2 GHG emissions by 22.4% (FY07 baseline)
• 71.9% of global electricity came from renewable sources
• Customers returned 11,718 metric tonnes of Cisco products for reuse and recycling
• Avoided approximately 41 GWh of energy consumption and 19,100 metric tonnes CO2e through energy efficiency projects

Social Achievements

• Cisco Networking Academy program helped one million people develop valuable ICT and career skills
• 155,600 hours volunteered by Cisco employees
• Launched Our People Deal, focused on transforming the employee experience
• Jordan Healthcare Initiative benefited 150,000 patients

Governance Achievements

• 100 percent of eligible employees completed annual certification to the Cisco Code of Business Conduct
• Ethisphere Institute recognized Cisco as one of the World’s Most Ethical Companies® for eight consecutive years
• Maintained Privacy Seal by TRUSTe and recertification with the U.S.-EU Safe Harbor framework

Climate Goals & Targets

Environmental Challenges

• Growing stakeholder interest and business opportunity in education and skills development, inclusion and collaboration, and product end-of-life management
• Data security and privacy concerns related to the Internet of Everything
• Growing concern about the use of networking equipment for improper surveillance
• Global shortage of skilled IT workers
• Disposal of electronic products
• Increasing GHG concentrations in the atmosphere and associated climate change
• Water scarcity
• Improving transparency in the supply chain

Mitigation Strategies

• Refreshed CSR materiality assessment
• Data security by design, cloud security services, compliance with privacy regulations, increased transparency
• Risk-resilient product design, advocacy for reasonable government legislation
• Cisco Networking Academy program, investments in skills-to-jobs initiatives
• Comprehensive product end-of-life services, reuse and recycling programs
• EnergyOps Program, renewable energy initiatives, product energy efficiency improvements
• Energy efficiency improvements, reclaimed water use
• Supplier audits, engagement with suppliers, use of tools like Labor Link

Supply Chain Management

Supplier Audits: 46 supplier facilities

Responsible Procurement

• EICC Supplier Code of Conduct
• Conflict Mineral Due Diligence Program
• Supplier diversity program

Climate-Related Risks & Opportunities

Opportunities

• Product energy efficiency improvements, renewable energy initiatives

Reporting Standards

Frameworks Used: GRI G4 Guidelines

Certifications: ISO 14001

Awards & Recognition

• Fortune magazine’s “Change the World” list
• Network Middle East Innovation Award for “Cloud Implementation of the Year” (Jordan Healthcare Initiative)
• International AEE Corporate Energy Management Award

Environmental Metrics

ESG Focus Areas

• People
• Society
• Planet

Environmental Achievements

• Completed more than 100 energy-efficiency and renewable energy projects, with a net present value of $69 million over 10 years. These projects will collectively avoid 140 GWh of energy each year.
• Reduced Scope 1 and 2 GHG emissions by 34% compared to the FY07 baseline.
• Increased onsite solar electricity generation from 200 kW to over 2.7 MW since 2012.
• Avoided 128,239 metric tonnes of GHG emissions through the Mode Shift Program since FY12.
• Avoided approximately 192 million GWh of energy and 87,000 metric tonnes of CO2e since FY12 through energy efficiency and onsite renewable energy projects.
• Reduced data center square footage by 20% since April 2012.
• Achieved a Power Usage Effectiveness (PUE) of 1.41 and 1.35 at full load in new data centers in Research Triangle Park, NC, and Allen, TX, respectively.

Social Achievements

• Cisco Networking Academy® program reached more than 1 million students in 170 countries.
• Employees volunteered more than 187,100 hours and contributed nearly $12 million in charitable donations.
• Launched Time2Give, allowing employees five paid days off per year for volunteering.
• Increased overall global workforce diversity, with women now representing 24% of the workforce.
• Improved diverse hiring: over 4% for women, 13% for African-American/Black candidates, 14% for Hispanic/Latino candidates, and 30% for American Indian, Native Hawaiian, or multiracial candidates.
• Implemented the UN’s Guiding Principles on Business and Human Rights.
• Completed human rights training for more than 25,000 employees.

Governance Achievements

• Recognized by the Ethisphere Institute as one of the World’s Most Ethical Companies® for nine consecutive years.
• 99.8% of eligible employees completed annual certification to the Cisco Code of Business Conduct.
• Ethics Office received 871 cases in FY16, demonstrating employee confidence in the process.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to various factors (implied)
• Increasing energy use as the company grows in emerging markets.
• Difficulty in filling jobs due to a shortage of technical skills.
• Low product return rates (less than 15%).
• Challenges in achieving full transparency and data collection across the extended supply chain.
• Balancing consumer protection and business requirements in data security and privacy.

Mitigation Strategies

• Investing in energy efficiency and renewable energy projects.
• Implementing IoT solutions to improve manufacturing facility operations and energy management.
• Developing remote collaboration solutions to reduce business travel.
• Introducing the Send IT Back mobile app to facilitate product returns.
• Using digital solutions to improve supply chain transparency and worker engagement.
• Implementing “data security by design” principles.
• Developing a risk-based approach to supplier audits and engagement.
• Working with suppliers to improve their sustainability performance.

Supply Chain Management

Supplier Audits: 55 audits/year

Responsible Procurement

• EICC Supplier Code of Conduct
• Supplier scorecards
• GHG reporting through CDP
• Conflict Minerals Due Diligence Disclosure

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products and solutions

Reporting Standards

Frameworks Used: GRI G4 Guidelines

Certifications: ISO 14001

Third-party Assurance: Third-party assurance provider for GHG inventory and some other data (details not specified)

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 13 (Climate Action)
• Goal 4 (Quality Education)
• Goal 8 (Decent Work and Economic Growth)
• Goal 3 (Good Health and Well-being)
• Goal 5 (Gender Equality)
• Goal 1 (No Poverty)
• Goal 2 (Zero Hunger)
• Goal 6 (Clean Water and Sanitation)
• Goal 9 (Industry, Innovation and Infrastructure)
• Goal 11 (Sustainable Cities and Communities)
• Goal 12 (Responsible Consumption and Production)
• Goal 17 (Partnerships for the Goals)

Various initiatives align with these goals (details provided in the report).

Sustainable Products & Innovation

• Energy-efficient products
• Products with recycled content

Awards & Recognition

• EPA Climate Leadership Award for Supply Chain Leadership
• EPA Green Power Partner of the Year
• Duke Energy Power Partner of the Year
• Golden Peacock Global Award for Corporate Social Responsibility
• AEE Corporate Energy Management Award

Environmental Metrics

ESG Focus Areas

• People
• Society
• Planet

Environmental Achievements

• Met five-year goals set in February 2013 to reduce total Scope 1 and 2 GHG emissions worldwide by 40% absolute by 2017, and to use electricity generated from renewable sources for at least 25% of our global electricity every year through FY17 (reaching 77% in FY17).
• 41% Absolute reduction in Cisco Scope 1 and 2 GHG emissions worldwide from FY07 baseline to FY17
• 80% of FY17 Cisco global electricity consumption from renewable sources
• Avoided 711,980 metric tonne of supply chain GHG emissions (71.2% of 1 million metric tonne goal)

Social Achievements

• 44% of Cisco employees volunteered or made charitable donations—up 7% from FY16
• 1.3 million students worldwide participated in Cisco Networking Academy—marking 20 years of changing worlds
• $355 million in corporate and Cisco Foundation cash and in-kind contributions
• Positively impacted more than 154 million people through investments in technology-based programs of nonprofit organizations
• 78% of Newport High School students earned Cisco certifications

Governance Achievements

• Over 99.9% of eligible employees completed certification to the Code of Business Conduct.
• The Ethics Office received 951 inquiries, including questions and requests for guidance (44%), allegations of misconduct (33%), and conflict disclosures (23%).

Climate Goals & Targets

Environmental Challenges

• Meeting the business-air-travel goal and the operational energy use per unit of revenue goal due to sales-driven nature of air travel emissions and revenue growth not meeting expectations.
• Obtaining Cisco-specific emissions data to prioritize new initiatives and manage existing ones in the supply chain.
• Increased levels of animal poaching rates around the world.

Mitigation Strategies

• Using collaboration technologies to reduce business air travel.
• Investing in digitization efforts to understand and monitor the supply chain.
• Developing the Cisco Connected Conservation program to use technology to track human movement in and around game reserves.

Supply Chain Management

Supplier Audits: 53 audits in FY17

Responsible Procurement

• Supplier Ethics Policy, RBA Supplier Code of Conduct, Conflict Minerals Policy, Controlled Substances Specification

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 14001

Third-party Assurance: Third-party assurance provider for GHG inventory (limited assurance).

Sustainable Products & Innovation

• Cisco IP Phone 7800 Series with recycled plastic

Awards & Recognition

• CDP Climate A List, Corporate Knights Global 100, EPA Green Power Partner of the Year, Frost & Sullivan Sustainability Leadership Award, DJSI World Index

Environmental Metrics

ESG Focus Areas

• People
• Society
• Planet

Environmental Achievements

• Reduced total Cisco Scope 1 and 2 GHG emissions worldwide by 45% since FY07 baseline.
• Avoided 910,582 metric tonnes of carbon emissions (91% of 1 million metric tonne goal) in the supply chain from FY12 to FY18.
• 40% of Bangalore campus powered by two solar power purchase agreements.
• 100% renewable energy at North American facilities.

Social Achievements

• 5-year, $50 million commitment to Destination: Home to address homelessness in Santa Clara County.
• Positively impacted 445 million people through social impact grants and signature programs.
• 1.87 million Cisco Networking Academy students enrolled worldwide.
• 29% record hiring rate for women.
• $21.4 million employee donations to charities and Cisco matching gifts.
• 424,000 employee volunteer hours.

Governance Achievements

• 58% diverse executive leadership team.
• Introduced new ethics and compliance training for employees on open-source and third-party software infringement, as well as on the new General Data and Protection Regulation (GDPR) mandate.
• Achieved a perfect score on the 2018 Human Rights Campaign’s Corporate Equality Index for the 15th consecutive year.

Climate Goals & Targets

Environmental Challenges

• Shortage of affordable housing in Silicon Valley leading to high rates of homelessness.
• Increasing number and intensity of natural disasters worldwide.
• Global skills shortage in ICT.
• Uneven distribution of skills, resources, and access to new technologies.
• Human rights risks associated with disruptive technologies.

Mitigation Strategies

• $50 million commitment to Destination: Home.
• Cisco Tactical Operations (TacOps) team responding to disasters worldwide.
• Cisco Networking Academy providing IT skills training.
• Strategic social investments to build digital skills and entrepreneurship.
• Development of human rights position statements on disruptive technologies.
• Supplier Code of Conduct and audits to ensure responsible business standards in the supply chain.

Supply Chain Management

Supplier Audits: 60 supplier facilities audited through RBA

Responsible Procurement

• Supplier Code of Conduct
• Responsible Minerals Assurance Process
• Circular Economy initiatives

Climate-Related Risks & Opportunities

Physical Risks

• Natural disasters

Opportunities

• Renewable energy investments
• Energy efficiency improvements

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 14001

Awards & Recognition

• #1 on Barron’s Most Sustainable Companies 2018
• #9 in the Wall Street Journal’s Management Top 250 2018

Environmental Metrics

ESG Focus Areas

• Education
• Environmental Sustainability
• Social Impact
• Diversity and Inclusion
• Ethical Business Practices
• Human Rights
• Data Privacy

Environmental Achievements

• Achieved and exceeded the goal of avoiding 1 million metric tonnes of GHG emissions in their supply chain ahead of the FY20 target date.
• Avoided the use of more than 456 metric tons of virgin plastic by producing IP phones with 35 percent recycled content plastic.
• Reduced plastic waste with biodegradable to-go boxes and reusable cups and mugs, avoiding over 10,000 plastic items from landfill each week (6 tons of plastic saved).

Social Achievements

• Reached 2.15 million students in 180 countries through Cisco Networking Academy, exceeding their goal of reaching 2 million students per year by 2020.
• Positively impacted 469 million people through cash grant investments and signature programs.
• 51 percent of employees donated or volunteered in fiscal 2019.
• Launched the “Conscious Culture” initiative to foster an inclusive and ethical work environment.
• Committed $50 million over five years to help Destination: Home address homelessness in Santa Clara County, California.
• Committed $1 million over four years to support a housing-first pilot in Rome, Italy.

Governance Achievements

• Implemented a new framework called “Conscious Culture” to define and improve company culture, addressing concerns like bullying and unethical behavior.
• Shared internal metrics regarding employee-reported concerns every six months.

Climate Goals & Targets

Environmental Challenges

• Addressing the growing crisis of homelessness.
• Ensuring data privacy in an increasingly connected world.
• Managing water use in regions with water scarcity.
• Reducing GHG emissions and increasing renewable energy use.

Mitigation Strategies

• Partnerships with organizations like Destination: Home and Global Citizen.
• Advocating for comprehensive laws that respect privacy as a fundamental human right.
• Exploring ways to better manage water use in India.
• Investing in renewable energy sources and prioritizing projects that add capacity to the grid.
• Setting GHG emission reduction goals and implementing sustainable business practices.

Supply Chain Management

Responsible Procurement

• Due diligence on minerals to ensure their mining and sale is not benefiting armed groups or actors that commit human rights violations.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, UN Global Compact

UN Sustainable Development Goals

• Goal 4 (Quality Education)
• Goal 9 (Industry, Innovation, and Infrastructure)
• Goal 11 (Sustainable Cities and Communities)
• Goal 13 (Climate Action)
• Goal 17 (Partnerships for the Goals)

Cisco's initiatives contribute to these goals through education programs, sustainable technology solutions, community development projects, and partnerships with various organizations.

Sustainable Products & Innovation

• IP phones with recycled plastic content
• Catalyst 9200 and 9300L products without oil-based paints

Awards & Recognition

• Chairman’s Award for Advancement in Accessibility from the Federal Communications Commission (for Cisco IP Phone 8800 series)

Environmental Metrics

ESG Focus Areas

• Ethics and integrity
• Data security and privacy
• Employee training and development
• Inclusion and diversity
• Energy and GHGs
• Supply chain sustainability
• Material use and waste
• Digital rights and Inclusion
• Employee community benefits
• Local community impact
• IT skills and digital readiness
• Critical human needs and disaster relief
• IT solutions for the environment
• Solid waste from operations (trash)
• Water
• Economic inequality

Environmental Achievements

• 55% absolute reduction in total Scope 1 and 2 greenhouse gas emissions (FY07 baseline)
• 83% of Cisco’s total global electricity was generated by wind, solar, and hydroelectric sources

Social Achievements

• 81% employee participation in community impact
• 2.3 million students participated in Cisco Networking Academy in FY20
• US$458 million in cash and in-kind contributions to community programs by Cisco and the Cisco Foundation
• US$53 million in cash and personal protective equipment to nonprofit organizations and first responders during COVID-19

Governance Achievements

• Ranked #1 World’s Best Workplace 2019 and 2020, according to Great Place to Work ®
• No.1 in The Gartner Supply Chain Top 25 for 2020 report

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic and its impact on business operations and supply chain
• Systemic racism and inequities
• Climate change and its effects on vulnerable populations
• Data breaches and cyberattacks
• Global skills shortage

Mitigation Strategies

• Developed a new framework for responding to crises, injustice, and global challenges
• Introduced a new communications strategy to reinforce ethical conduct
• Implemented a predictive algorithm to identify high-risk deals
• Invested in renewable energy and energy efficiency projects
• Engaged with suppliers to reduce emissions and set targets
• Developed a virtual internship program
• Expanded remote work capabilities
• Provided resources and support for employees' mental health
• Launched a new digital platform for employee community engagement
• Developed Circular Design Principles for products and packaging
• Expanded Cisco Networking Academy program

Supply Chain Management

Supplier Audits: 66 RBA initial audits conducted in FY20

Responsible Procurement

• Supplier Code of Conduct
• RBA Code of Conduct
• Responsible Minerals Policy
• Juvenile Labor Policy and Expectations

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products
• Investment in renewable energy

Reporting Standards

Frameworks Used: GRI: Core Application

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Cisco 8000 Series routers
• Cisco 8201 router
• IP phone 8800 series
• Webex Room Kit Plus

Awards & Recognition

• #1 World’s Best Workplace 2019 and 2020
• No.1 in The Gartner Supply Chain Top 25 for 2020 report
• #2 in IT Industry IPE Supply Chain Climate Action Index (SCTI) and Green Supply Chain Corporate Information Transparency Index (CITI)

Environmental Metrics

ESG Focus Areas

• Business ethics
• Data security and privacy
• Talent
• Inclusion and diversity
• Climate change and GHG emissions
• Human rights and working conditions in the supply chain
• Circular Economy
• Operational waste
• Business ethics
• Talent employee experience
• Employee health, safety, and labor rights
• Community impact
• Digital inclusion
• Critical human needs and disaster relief
• Operational waste
• Water
• Economic empowerment

Environmental Achievements

• Reduced GHG emissions (Specific figures not provided in the report)
• Reduced energy consumption (Specific figures not provided in the report)
• Waste reduction initiatives (Specific figures not provided in the report)
• Water conservation initiatives (Specific figures not provided in the report)

Social Achievements

• Positively impacted over 680 million people between fiscal 2016 and fiscal 2021 (through social impact grants and signature programs)
• Employee wellbeing initiatives (details not specified)

Governance Achievements

• No specific quantified achievements mentioned in the provided text

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Standards (Core)

Certifications: Null

Third-party Assurance: Limited external assurance from an independent third party for Scope 1 & 2 emissions data in accordance with ISO 14065

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Business ethics
• Data security and privacy
• Talent
• Inclusion and diversity
• Climate change and GHG emissions
• Human rights and working conditions in the supply chain
• Circular economy
• Operational waste
• Environmental compliance
• Employee health, safety, and labor rights
• Community impact
• Digital inclusion
• Critical human needs and disaster relief
• Water
• Economic empowerment

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Standards (Core)

Certifications: Null

Third-party Assurance: An independent third party provides a limited assurance review of our Scope 1 and 2 GHG inventory. This limited assurance review is provided in accordance with the ISO 14064-3 International Standard.

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate change and GHGs
• Circular economy
• Operational waste
• Environmental regeneration and protection
• Water
• Inclusion and diversity
• Talent
• Human rights and working conditions in the supply chain
• Employee wellbeing
• Employee health and safety and labor rights
• Digital inclusion
• Community impact
• Critical human needs and disaster relief
• Economic empowerment
• Corporate governance
• Data security and privacy
• Business ethics
• Innovation and responsible technology

Environmental Achievements

• Goal to reach net zero greenhouse gas emissions across value chain by 2040, approved by the Science Based Targets initiative (SBTi) in 2022
• Continued work towards our goal of 100% of new Cisco products and packaging incorporating our Circular Design Principles by fiscal 2025

Social Achievements

• Ranked #1 in the United States on Fortune Magazine’s 100 Best Companies to Work For list for the third year in a row
• Reached 20.5 million learners across 190 countries through Cisco Networking Academy
• Set a goal to positively impact one billion people by 2025 through social impact grants and signature programs

Governance Achievements

• Created a new Environmental, Social and Public Policy Committee to enhance oversight of Cisco’s initiatives, policies, programs, and strategies tied to environmental sustainability and other key corporate social responsibility and public policy matters
• Incorporated a product annualized recurring revenue (ARR) performance metric into our fiscal 2023 executive compensation program
• Incorporated a team performance factor into our variable cash incentive plan, scored based on the executive leadership team’s joint execution with respect to our overall ESG strategy

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions
• Component shortages
• Counterfeit products
• Cybersecurity threats
• Data breaches
• Evolving ESG regulations
• Competition
• Global macroeconomic uncertainty
• Geopolitical risks

Mitigation Strategies

• Redesigned hundreds of products and sourced alternative key components
• Increased inventory and purchase commitments
• Worked with law enforcement to combat counterfeiters
• Implemented security measures
• Provided security updates for affected products
• Communicated ESG-related initiatives, goals, and commitments
• Invested in priority areas
• Hedging strategies for currency and interest rate risks
• Restructuring plan to rebalance the organization

Supply Chain Management

Supplier Audits: Risk assessments, audits, and targeted engagements

Responsible Procurement

• RBA Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Flooding
• Earthquakes
• Wildfires
• Storms
• Drought

Transition Risks

• Regulatory changes
• Market shifts
• Changes in customer demand

Opportunities

• Development of energy-efficient products
• Investments in renewable energy

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UN Sustainable Development Goals

Sustainable Products & Innovation

• Energy-efficient products

Awards & Recognition

• Fortune Magazine’s 100 Best Companies to Work For

Environmental Metrics

ESG Focus Areas

• Sustainability
• Digital Inclusion
• Responsible AI Governance
• Cybersecurity
• Data Privacy
• Trade
• Innovation

Social Achievements

• Cisco's Networking Academy provides digital skills training.

Governance Achievements

• Advocating for responsible AI governance globally.

Climate Goals & Targets

Environmental Challenges

• Digital talent shortage in Europe.
• Unsupported and outdated digital devices in critical networks.
• Lack of harmonisation in telecoms rules.
• Insufficient spectrum allocation for Wi-Fi.
• Need for alignment of green, energy, and digital agendas.
• Lack of investment and slow adoption of key digital technologies in EU countries.

Mitigation Strategies

• Proposing an 'Alliance for Connectivity' to address broadband needs.
• Recommending the use of the upper part of the 6 GHz band for Wi-Fi.
• Advocating for financial incentives and beneficial tax regimes to support the green and digital transition.
• Promoting collaboration with trusted allies on economic innovations.

Supply Chain Management

Climate-Related Risks & Opportunities

UN Sustainable Development Goals

• SDG 9: Industry, Innovation and Infrastructure
• SDG 13: Climate Action

Cisco's policy recommendations aim to support the development of sustainable and inclusive digital infrastructure, contributing to economic growth and climate action.