Cisco and the Environment

Real estate costs are the second-largest operating expenditure for most companies. Fifty percent of the world's energy is used in buildings. Cisco real estate and technology solutions are now fully integrated to provide flexible wireless work space that is efficient in cost and environmental resources. This benefits people, profitability, and the environment.

Through our Connected Workplace project, Cisco is experimenting with new models for the work environment that simultaneously improve the workplace for our employees, lessen our impact on our the environment, and result in savings of millions of dollars in operating expenses each year.

Performance

Cisco has grown steadily over the last decade. As a result, our energy consumption has also increased.

Between FY2002 and FY2005 our energy consumption increased by 31 percent, a figure directly attributable to business growth (sales increased by 31 percent over the same period).

We are actively seeking to mitigate our increased energy consumption through several initiatives to improve energy efficiency. As a direct result, although energy consumption in FY2004 and FY2005 grew by 8 percent, relative to sales, our energy consumption has decreased by 9 percent compared with FY2003 levels.

These gains largely result from more efficient use of existing facilities and the introduction of energy-saving measures in building design and equipment specification. We estimate these initiatives have saved over 62 million KWh of electricity per year, equivalent to approximately 23,000 tons of carbon dioxide (CO₂) emissions annually.

Cisco is continuing to work on improving energy efficiency across its property and operations. Future goals include further identifying ways to reduce energy use by an additional 10 million to 12 million KWh per year, by 2007. To achieve this goal, Cisco will continue to focus on energy-efficient office equipment and systems, as well as a reduction in staff travel.