Today, technology companies have some of the most ambitious environmental goals, and as a leader in networking technology, Cisco isn’t far behind. Let’s explore Cisco's sustainability goals and efforts.
Cisco employs over 83,000 people and has a global physical footprint. With such extensive operations, its environmental impact is also significant. The company has been making progress on emission reduction. As of 2023, Cisco’s Scope 1 and 2 emissions have reduced by 48 percent. It also hired its first Chief Sustainability Officer (CSO), Mary de Wysocki, who had earlier been VP of CSR & Sustainability.
Cisco, a large-scale manufacturer of hardware and technology services provider, has a significant role in the efforts to stop climate change. While it can decarbonize its operations, it can also empower companies worldwide to reduce their emissions with innovative solutions for IT infrastructure, such as energy-efficient networking devices and smart low-voltage products.
Cisco Sustainability Goals
Cisco has committed to several environmental goals that may be achieved in the next two decades. With these goals, it’s taking a two-pronged approach of targeting its emissions and promoting technologies that pave the way for a green future.
Here are Cisco’s sustainability goals:
- Net-zero status by 2040
- 30 percent reduction of Scope 3 emissions by 2030
- 70 percent (in terms of spend) of Cisco component and manufacturing suppliers to achieve a zero-waste diversion rate at one or more sites by the fiscal year 2025
- All new products and their packaging to incorporate circular design principles by 2025
- $100 million investment by the Cisco Fund for climate solutions to be realized over 10 years, beginning from 2021
Cisco Carbon Footprint
Cisco relies on the CDP protocol to disclose its emissions data. The company not only reports Scope 1 and 2 data but also Scope 3 data. Like many technology companies, the latter makes up most of Cisco's emissions, primarily attributed to its supply chain and the use of its products.
In its 2023 ESG report, Cisco reported its emissions for fiscal year 2023 as follows:
- Scope 1: 39,514
- Scope 2 (location-based): 567,637
- Scope 2 (market-based): 81,806
- Scope 3: 22,115,000
*reported in metric tonne CO2e
Scope 1 and 2 emissions decreased compared to the previous fiscal year. However, Scope 3 emissions have increased.
Cisco reports emissions for all 15 categories of Scope 3 emissions as per the GHG Protocol. Of these categories, sold products are responsible for most value chain emissions (over 15 million metric tonnes CO2e).
The third-party assurance further solidifies the authenticity of Cisco’s emissions reporting.
Cisco’s ESG Strategy
A strong long-term strategy guides Cisco system sustainability efforts. Over the last decade, the company has targeted its direct emissions, including switching to clean energy. To achieve its 2040 goal of becoming net-zero, it targets its energy consumption and its suppliers.
Cisco also plans to target its value chain emissions with ambitious plans, including its products and services. Here are the key strategies Cisco is using for a greener future:
Circular, Regenerative Economy
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Electronic waste is a significant contributor to greenhouse gas (GHG) emissions. As a hardware manufacturer, Cisco is also prone to emissions from the waste of its products.
In 2018, Cisco joined the Capital Equipment Pledge, where tech companies committed to achieving 100 percent product return. To fulfill this pledge, Cisco is actively designing and building products that are recyclable. The company’s technologies are centered around a circular design. Cisco has also introduced programs aligned with its circular vision.
“We must build a sustainable future in which we phase out our reliance on fossil fuels, address centuries’ worth of pollution, provide economic opportunities to communities around the world, and align our activities within the physical boundaries of our Earth. We’re focusing on not just a sustainable but a regenerative future,” writes Wysocki about the company’s vision for a regenerative future.
Investments
Beyond these efforts, Cisco also plans to make climate-impact investments. The company aims to invest in resilient ecosystems that leverage advanced technologies. These investments will fund early-stage climate companies and provide grants for non-profits.
Cisco Products and Solutions for Sustainability
Cisco’s impact on sustainability extends beyond its operations. As a product manufacturer and services provider, it empowers other companies to decarbonize. The company has initiated several programs for better lifecycle management of products.
Cisco Refresh
The Cisco Refresh program extends the lifecycle of its equipment by refurbishing previously used products. Customers can purchase high-quality used Cisco devices at a reduced cost, which targets electronic waste and optimizes resource consumption.
Take-Back-and-Reuse
The Take-Back-and-Reuse program collects legacy equipment at no cost to the consumer and repurposes it for other applications. Similar to the Refresh program, it targets electronic waste, ensuring that end-of-use devices do not end up in landfills.
Remote Work Solutions
A variety of Cisco’s services and solutions enable companies to adopt and optimize remote work. By promoting efficient remote work through collaboration tools and secure networks, Cisco helps reduce commuting emissions and office energy consumption.
A study shows that remote workers who work entirely from home can reduce their emissions by 54 percent. Even one day a week of remote work can result in emissions cuts by two percent.
Smart Low-Voltage Devices
Cisco is developing networking products designed for lower power consumption. These energy-efficient devices help organizations minimize their overall energy footprint and contribute to a greener IT infrastructure. Many of the products in Cisco’s networking lineups are Energy Star certified.
Green Pay
Cisco Green Pay is an innovative circular IT payment solution that provides equipment for use rather than complete ownership. It’s based on a circular economy model where equipment is reused or repurposed.
Instead of outright buying equipment, a company can set up a three-year payment system. At the end of this term, Cisco can recycle, refurbish, or reuse the equipment. By shifting from a traditional ownership model, Cisco can afford customers savings on procurement.
Challenges to Overcome
Cisco's environmental sustainability efforts are commendable, and its vision is globally needed. However, Cisco faces certain challenges, mainly with its Scope 3 emissions.
Its latest ESG report shows that Cisco’s value chain emissions comprise over 95 percent of its total. The company has programs to optimize its product use emissions, where most Scope 3 emissions originate. However, it hasn’t provided a clear pathway on how much its proposed plans and programs will affect value chain emissions.
Cisco also needs to design products that last long and promote reuse and recycling. These measures can help reduce emissions within the product's lifecycle.
Choose a Sustainable OEM
When choosing an OEM for IT infrastructure, research its environmental impact. Cisco has proven its commitment to sustainability through its efforts, initiatives, and programs. The company’s incorporation of sustainability in its product design helps consumers reduce their energy consumption and ultimately reduce emissions.
At PivIT, sustainability is not an afterthought but a top priority. As a hardware supplier, we ensure we partner with OEMs who share our environmental commitment.
Our procurement specialists can help you find energy-efficient Cisco equipment and recycle your legacy equipment.
Learn more about PivIT’s commitment to sustainability!
FAQs
How is Cisco helping partners show their commitment to sustainability?
Cisco offers an Environmental Sustainability Specialization to partners who support its sustainability pledges and participate in its initiatives to reduce emissions and promote a circular economy.
What are Cisco's future sustainability goals?
By reducing emissions across its value chain, Cisco aims to go net-zero by 2040. The company also has near-term goals such as reducing packaging waste, using recycled plastic, and investing in climate initiatives and grants.
What is Cisco most famous for?
Cisco is a leader in network equipment, providing high-quality servers, switches, routers, access points, and more. The company’s products power enterprise networks worldwide, from government agencies to large corporations.
