Cisco's Green Story for Greening Greater Toronto

EcoBoard Cross-Functional Structure Capabilities Market Positioning/ Market Access Differentiation Enablement Competition Collaboration Gov’t Affairs Engineering Sales Communications Legal Initiatives / Task Force Teams Corporate Green Engineering Green to Market Sustainability Presentation_ID © 2009 Cisco Systems, Inc. All rights reserved. Cisco Public 7

Cisco’s Green Ecosystem Industry and Financial Analysts Partners Employees Customers Nonprofit/NGO/ Volunteer Suppliers Organizations Regulatory Local, Regional, and Compliance and National Bodies Governments Presentation_ID © 2009 Cisco Systems, Inc. All rights reserved. Cisco Public 8

Cisco’s Commitment 25% Reduction in GHG Emissions by 2012  Labs and data centers  Cisco connected workspace 40% 2010  Collaboration technologies Year One Results: 27.7 Percent Reduction in GHG Emissions Presentation_ID © 2009 Cisco Systems, Inc. All rights reserved. Cisco Public 9

Cisco’s Green Vision If it can be connected to the Internet, it can vision be greener; the network is the platform for sustainability and green innovation strategy Green Collaborative Working Model execution  Initiatives & Programs to drive results  Capabilities to sustain differentiation Presentation_ID © 2009 Cisco Systems, Inc. All rights reserved. Cisco Public 11

How a Small Part of the Problem Can Be a Big Part of the Solution  According to the SMART 2020 Report, ICT could reduce global emissions up to 15% by 2020; five times its own footprint in 2020.  Key requirements to capture opportunity: New Business Models Energy Efficiency R&D Investments New Ecosystems New Regulatory Models Active Carbon Markets Presentation_ID © 2009 Cisco Systems, Inc. All rights reserved. Cisco Public 12

How a Small Part of the Problem Can Be a Big Part of the Solution Make Every Connection a Greener Connection  Electricity use in offices MONITOR  Appliances in homes  Traffic flows in cities MANAGE REDUCE Presentation_ID © 2009 Cisco Systems, Inc. All rights reserved. Cisco Public 13

Commitment to Standards Cisco is playing a By actively participating in these leadership role in organizations, groups, and others. the development and consistent application of environmental standards. Presentation_ID © 2009 Cisco Systems, Inc. All rights reserved. Cisco Public 14

Sustainable Company Operations  Understanding and reducing our environmental impacts and helping others do the same.  Lowering energy consumption, reducing business air travel, and using technology to reduce our overall GHG emissions.  Energy efficiency and responsible use of scarce resources in our labs, data centers and office buildings.  Strategic procurement of renewable energy in our operations.  Involving employees in all aspects of the company’s environmental efforts. Presentation_ID © 2009 Cisco Systems, Inc. All rights reserved. Cisco Public 16

Understanding Our Impact Cisco’s Environmental Data Tool (EDT) is a Cisco developed energy and GHG management tool  EDT enables a corporate-wide facility inventory of GHG emissions and creates a framework for gathering and reporting corporate environmental metrics  EDT can be used to track GHG emissions associated with electricity, natural gas, diesel fuel, propane, and refrigerants used or consumed by facilities. Presentation_ID © 2009 Cisco Systems, Inc. All rights reserved. Cisco Public 17

From Carbon to Collaboration GHG Emissions from Air Travel Compared to Headcount and Revenue FY05 FY06 FY07 FY08 FY06 to FY08 Headcount Change 5% 13% 19% 20% 42% Year to Year Revenue Change Year to Year 13% 15% 23% 14% 40% GHG Emissions from Air 23%* 13%* 4% <1% 5% Travel Change Year to Year Cisco’s 2006 Clinton Global Initiative Carbon- to-Collaboration commitment is to reduce emissions from business air travel by 10 percent, using FY06 as a baseline. *Percent change in GHG emissions based on previously reported FY04 and FY05 air travel emissions. Presentation_ID © 2009 Cisco Systems, Inc. All rights reserved. Cisco Public 18

Solutions: TelePresence Converging All Forms of Human Expression Helping Business Become “Green” Reduced overall company carbon emissions by 10% Helped Cisco cut 1B miles of annual air travel by 20% Better customer service, “The Best of 2006” improved quality of life Presentation_ID © 2007 Cisco Systems, Inc. All rights reserved. Cisco Confidential 19

357k US$ metric 250M in tons of US$ productivity GHG cost savings emissions 661M saved cost 165k savings on mtgs travel avoided travel

Greener Events  Event Marketer magazine recognized Cisco’s 2008 CIO Summit with a silver award in the Best Green Event/Tradeshow category of its annual Ex Awards.  In May 2009, Cisco held its inaugural Virtual Strategic Leadership Offsite. More than 3,000 participants rated the event a 4.3 on a scale from 1-5 (5 being the highest rating).  In September 2009, 19,000 sales employees gathered for GSX — the first ever program of it’s size. The event saved 150,000 hours in air travel and reduced Cisco’s carbon emissions by 37,500 tons Presentation_ID © 2009 Cisco Systems, Inc. All rights reserved. Cisco Public 22

Green Value Chain Management Ensuring that all Cisco products can be sourced, manufactured, and sold anywhere, any time, in a socially responsible manner.  In January 2008 Aberdeen’s “Supply Chain Executives Strategic Report” highlighted Cisco as a case study on how to drive end-to-end sustainability throughout the supply chain.  Cisco Consumer Products Group is now shipping 92 products in consumer packaging that uses an average of 38% less paper, or in blister packaging that use 50% less plastic, than before.  In FY09, more than 40 areas of environmental packaging innovation were implemented, reducing annualized packaging volume by 4 million pounds and removing petroleum based foam with 100% recyclable plastics.  Eliminating printed circuit board “burn in” is being deployed across Cisco platforms, allowing for 5000MWh of energy savings per year and reducing associated carbon emissions of 3000 metric tonnes. Presentation_ID © 2009 Cisco Systems, Inc. All rights reserved. Cisco Public 23

Efficient Use of Power in Our Buildings, Labs and Data Centers Both emissions and costs can be reduced through improved management facilitated by networking. Cisco has developed and is piloting two software programs designed to achieve greater energy efficiency in our company’s operations.  Cisco’s Automated Management Power System (AMPS) powers down equipment when it is not in use.  Cisco’s EMAN is a web-based system that monitors and reports on equipment power status, sending prompts when equipment has been left on.  The use of these programs is projected to result in an annual energy savings of 5.8 million kilowatt hours representing more than $800,000 in cost savings and rebates. Presentation_ID © 2009 Cisco Systems, Inc. All rights reserved. Cisco Public 25

Reducing Water Use Conserving water ensures availability and allows Cisco to save and reinvest these utility costs.  Low-flow auto-shutoff faucets in our Boxborough facility and waterless urinals in our San Jose headquarters are reducing water consumption by more than 11.8 million gallons per year.  Cisco uses reclaimed water for landscaping and similar applications. In California alone, we are saving more than 81 million gallons of water each year.  We use web-based technology to automate and optimize water schedules.  At product fabrication sites, recycled water is being used for the cooling of PCB ovens, driving our water conservation efforts through to our supply chain.  Washing of PCBs with water during the manufacturing process is being eliminated. In FY09, 86% of Cisco PCBs were produced without such washing. Presentation_ID © 2009 Cisco Systems, Inc. All rights reserved. Cisco Public 26

Managing Operational Waste Cisco strives to manage, reduce, or eliminate operational waste — which includes office, landscaping, and cafeteria wastes.  In San Jose, more than 75% of the total waste stream is now diverted from the landfill.  In our Brussels office, an employee education program and installation of new recycling bins boosted the recycling rate from 40 to 80 percent in 2007.  We estimate that the amount of energy saved through Cisco’s recycling efforts amounts to 35 million kilowatt hours annually. Presentation_ID © 2009 Cisco Systems, Inc. All rights reserved. Cisco Public 27

Green Power Purchasing FY07 FY08 FY09 Cisco Green Power Purchases Green Power (kWh) 110,000,000 342,000,000 466,000,000 Emissions Reductions (tCO2e) 64,300 239,400 352,500 Equivalent Number of Passenger Cars 11,800 43,800 64,600 In September 2009, Cisco was named an industry leader in environmental sustainability by the Carbon Disclosure Project (CDP) and Newsweek’s 2009 Corporate Green Rankings list. In October 2009, the U.S. Environmental Protection Agency ranked Cisco the seventh largest Fortune 500 purchaser of renewable energy in the United States. Presentation_ID © 2009 Cisco Systems, Inc. All rights reserved. Cisco Public 28

Cisco EnergyWise Technology  Innovative software added onto Cisco Catalyst® switching portfolio  Available to customers for download now or with technology refresh  Enables reduction of GhG emissions—impacting other 98%  Drives significant cost savings  Monitors, reports, reduces energy usage across entire infrastructure  Open technology Collaborative Cross-Industry Effort Presentation_ID © 2009 Cisco Systems, Inc. All rights reserved. Cisco Public 29

Connected Workplace at Cisco Cisco Connected Workplace combines collaborative and networking technologies with an open floor plan and an emphasis on mobility, thereby reconciling productive working patterns with environmental responsibility. Estimated Energy Efficiency Traditional Cisco Connected Percent Gains with Connected Workplace Office Workspace Change 33% Number of Employees 300 400 Increase Connected Electrical Load 36% 2.6 1.7 Reduction (watts/square footage) Connected Electrical Load 58% 432.9 178.7 Reduction (watts/employee) Total Connected Electrical Load 44% 127,169 71,476 Reduction (watts) 44% Total Cooling Loads (BTUs) 433.646 243,733 Reduction 44% Total Cooling Provision Tonnage 36 20 Reduction Presentation_ID © 2009 Cisco Systems, Inc. All rights reserved. Cisco Public 30

The Banyan Building: Built for Sustainability Environmental Economic Above LEED Standards: Annual Payback of:  25% above for lighting energy  OpEx savings of ~15%  27% above for water  Employee productivity of +9% consumption  Energy efficiency of +30%  31% above for cooling energy Total Savings: 1005 MWh  Enhanced air quality by 30% Social Collaboration Areas Cafeteria Child Care Centre © 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential 31

Nurturing a Green Culture Cisco seeks to inspire employees to help make the workplace more energy- and resource-efficient, as well as to engender pride in Cisco’s environmental actions.  Cisco employees learn about Cisco’s environmental strategy via the internal “Cisco Green” website and use it to collaborate and discuss environmental issues and share potential solutions.  Cisco employees commit to change at least one thing in their daily workplace lives by making a pledge to the Think Green, Act Green pledge page, actively contributing toward achieving Cisco’s green goals.  Cisco employees participate in global events such as beach and park cleanups, tree planting, eScrap collection, Earth Day, and Bike to Work Day. Presentation_ID © 2009 Cisco Systems, Inc. All rights reserved. Cisco Public 32

Helping Customers Meet Their Green Goals Energy Savings  Power Management  Tracking and Reporting  Infrastructure Consolidation Operational Efficiency  Extended Lifecycle  Optimized Processes  Simplified Architectures Innovative Business Processes  Virtual Worker  Remote Collaboration  Resource Virtualization Presentation_ID © 2009 Cisco Systems, Inc. All rights reserved. Cisco Public 35

Continuum of Greener IT Innovations Product Business Energy Efficiency Behavior Savings High-Efficiency PoE Device Power Supplies Power Control Cisco TelePresence Higher Performance Connected Per Watt Real Estate Data Center 3.0 Adaptive Power Cisco Collaboration Management UC & TP Services Data Center Cisco Motion Services Cisco Virtual Office Service and Trusted Flow Application Cisco Acceleration Integration EnergyWise Power Monitoring & Allocation Intelligent Traffic Redirect Presentation_ID © 2009 Cisco Systems, Inc. All rights reserved. Cisco Public 36

Cisco's Green Story for Greening Greater Toronto

by Rick Huijbregts on Oct 27, 2010

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