Cisco Aims to Reduce Greenhouse Gas Emissions 25% by 2012

As part of an ongoing commitment to environmental responsibility, Cisco (NASDAQ: CSCO) today announced that it has set a goal of reducing greenhouse gas (GHG) emissions from its worldwide operations by 25 percent over the next four years, reaching its goal in absolute terms by 2012. The company will deploy a unique multiprong approach focused on the power of technology to meet its objectives and to demonstrate how customers can do the same.

Cisco® Chairman and Chief Executive Officer John Chambers outlined the plan at Cisco Live!, the company's annual information technology (IT) and communications conference. In his keynote speech, Chambers discussed the transformative effect that IT can have on the world's environmental challenges and demonstrated Cisco's commitment to sustainability in its operations, culture, products and customer solutions.

"Every corporation has a responsibility to help address climate change and to minimize the impact of its operations on the environment," Chambers said. "Cisco is approaching this challenge not only by curbing our own company's greenhouse gas emissions but also by taking advantage of the power of networking technology to better manage our environmental concerns. By deploying innovative information technology solutions and using the network as a platform for 21st-century environmental management, we believe we can significantly alter our greenhouse gas footprint and help our customers meet their sustainability goals."

Cisco is a member of the U.S. Environmental Protection Agency's Climate Leaders program, an industry-government partnership that works with companies to develop comprehensive climate change strategies. Over the last six months, Cisco has worked with the EPA as well as other parties such as the Environmental Defense Fund (EDF) and sustainability consulting firm DOMANI to assess its worldwide GHG footprint, validate its metrics and establish aggressive, achievable goals. In calendar year 2007, Cisco's gross GHG footprint was 832,000 metric tons of CO2 equivalents (CO2e). This footprint includes emissions from Cisco's globally owned and leased facilities, vehicles and its airline travel. Based upon the EPA Climate Leaders protocol, this figure becomes net 724,000 metric tons of CO2e. With today's announcement, Cisco aims to reduce its GHG emissions by 2012 to a net footprint of 543,000 metric tons of CO2e.

"By setting a long-term greenhouse gas reduction goal and committing to reducing its footprint, Cisco is demonstrating corporate climate change leadership," said Robert J. Meyers, principal deputy assistant administrator of EPA's Office of Air and Radiation.

Reducing the Impact of Operations

In his speech today, Chambers outlined Cisco's approach for achieving a 25 percent absolute reduction in GHG emissions by 2012. In its labs and data centers, which account for a significant percentage of Cisco's energy use, the company will deploy a variety of techniques. These include taking detailed measurements of energy flows, utilizing more efficient lab equipment, using the "virtual network" to store data, adding smart power-distribution units that automatically shut down machines not in use, and upgrading building mechanical and electrical systems. Cisco will also increase its use of collaboration technologies such as Cisco TelePresence and the Cisco WebEx suite of tools to reduce the need for business travel, which accounts for 27 percent of Cisco's GHG footprint. As part of its commitment to the Clinton Global Initiative , Cisco has already decreased emissions from air travel by at least 10 percent per employee. Finally, Cisco will deploy its Cisco Connected Workspace solution in additional locations. This unique hybrid office environment is up and running at sites around the world, including Cisco's San Jose, Calif. headquarters, where it has significantly reduced electrical demand per employee in the impacted areas.

Cisco will also use network-based IT to reduce energy use in its facilities and operate its owned and leased space more efficiently. Cisco is currently piloting a software solution in the United States to model the impact of various factors on carbon footprint, waste reduction targets and other goals. This tool is allowing Cisco to take into account the rising cost of energy and to forecast how it will affect operations and expenditures, as well as to model how certain practices can reduce energy use.

"By employing an intelligent, Internet protocol-enabled building management system, Cisco is creating a model of 21st-century, network-based environmental accounting that will allow us to better manage and report progress on our commitment," said Laura Ipsen, co-chair of Cisco's EcoBoard and Senior Vice President of Cisco Global Policy and Government Affairs.

Finally, Cisco is incorporating environmental standards into new site design and existing site retrofits and purchasing variable amounts of renewable energy to supplement its operational efforts. In 2008, Cisco is expected to acquire approximately 460 million kWh of renewable energy worldwide. Cisco is also part of the EPA's Green Power Partnership , which ranks Cisco as No. 8 on its list of top 25 national purchasers of green power.