Cisco # 8

Cisco Green LeadershipVision

Cisco’s approach of “Changing the Way We Work, Live, Play, and Learn” extends to its ability to reduce the effects of the company’s operations and products on the environment. Cisco’s vision is to combine the power of innovation with collaboration to create the most sustainable model for addressing global climate change. Innovation is at the heart of what Cisco does, and collaboration – internally and externally – is what fuels its ability to drive new ideas across Cisco and with its customers. Cisco believes that the network can become a “green platform” for technology to help transform how we manage global environmental challenges.

Currently, Cisco is driving environmental initiatives in four key areas:

• Responsible operations: Working to lessen Cisco’s environmental footprint by using power in a more sustainable manner and by reducing the greenhouse gas emissions that result from business operations. Strides are also being made to better manage resources and waste, along with ensuring Cisco’s supply chain adheres to the company’s environmental and diversity goals.

• Product stewardship: Commitment to optimizing the functionality, accessibility, and performance of Cisco products while reducing the amount of power they need to operate. Cisco has also instituted strong recovery and recycling programs.

• Architecture: Developing networking architectures and solutions to enable customers and employees to mitigate their environmental impact and achieve their green goals.

• Advocacy: Acting as a catalyst for change with partners in industry, government, and among influencers.

Clinton Global Initiative

Carbon to Collaboration Launched in 2005, the Clinton Global Initiative’s (CGI) mission is to solve global problems that affect the quality of human life. Cisco is a CGI partner as
it aligns with the company’s strategy to reduce dependency on physical travel by investing in collaboration technologies that help reduce carbon emissions. This is demonstrated by Cisco’s commitment to reduce its C02 emissions by 10 percent, primarily through a 20 percent reduction in employee travel. During Fiscal Year 2007, Cisco successfully decoupled its growth in employees and earnings from an increase in carbon emissions due to air travel, which fell 14 percent over the previous year, normalized by sales revenue. Cisco is also investing $15 million through its Connected Urban Development initiative to create urban communications’ infrastructures that demonstrate how network connectivity can reduce carbon emissions for cities, countries, and individuals.

Connected Urban Development

•What: In its first phase, Connected Urban Development consists of building partnerships with three pilot cities—Amsterdam, San Francisco, and Seoul—to apply information and communications technology to promote innovative practices for reducing CO2. Each of the pilot cities will focus on excelling in one or two key areas.

•Why: The result will be a blueprint of best practices and methodologies that can be used as a reference by other cities. These blueprints will be replicated to additional cities during the second phase and scaled on a global basis in the third phase.

•Future: The scope of Connected Urban Development is expected to go beyond the environmental dimension, delivering innovative and sustainable models for urban planning and economic development. CUD recently announced that it will work with four additional cities on specific programs: Birmingham, England; Hamburg, Germany; Lisbon, Portugal; and Madrid, Spain.

Cisco EcoBoard

The Cisco EcoBoard was formed in the beginning of FY07. Made up of 14 leaders from departments across Cisco, the group has collaboratively developed an innovative corporate green strategy to reduce the company’s carbon footprint and deliver ecologically sound products and opportunities to customers.

•Mission:Impact how we operate as a company Create efficiencies and innovations in our products. Provide solutions to customers to address global environmental issues. Inspire employees and people around the wolrd to take action

Members: The board is chaired by Laura Ipsen, SVP, Global Policy and Government Affairs; John McCool, SVP, GM of Campus Switching Systems Technology Group; and Ron Ricci, VP,
Corporate Positioning. In addition, EcoBoard membership includes senior leaders from each
functional area within the company.

Green Leadership in the Information/Communications (ICT) Industries

Cisco believes information and communications technology can play a large role in how the world addresses its environmental challenges. Cisco is innovating in its operations, products, and customer solutions to address environmental issues and is collaborating with employees, customers, partners, and governments to create a sustainable ICT model for addressing climate change. To guide these efforts, Cisco has hired a Vice President of Green Engineering, Paul Marcoux, a founding member of The Green Grid initiative. Cisco has also played a leadership role in the development and consistent application of environmental standards.