Climate change is an important global issue of concern for Cisco. Cisco is closely monitoring the development of climate change and energy-related policy and regulation in those regions in which Cisco does business. Cisco participates in climate policy discussions including the G8 Climate Change Roundtable and the Sustainable Silicon Valley program.
To address policies affecting our operations, Cisco has established several strategies to monitor and improve the energy efficiency of our offices and laboratories. This strategy includes, for example, the development and maintenance of a companywide energy and greenhouse gas inventory, and energy-efficiency measures in the design and retrofit of our offices. We also have initiatives to improve office productivity and achieve more flexible working practices to reduce the demand for office space.
Performance
Between FY2002 and FY2005, total carbon dioxide (CO2) emissions from Cisco operations increased by 35 percent. This rise was directly attributable to an increase in energy consumption that resulted from substantial business growth. Between FY2004 and FY2005, CO2 emissions grew by only 9 percent.
When normalized by sales, our CO2 emissions increased by only 3 percent between FY2002 and FY2005, and decreased by six percent between FY2003 and FY2005. The improvement since 2003, a period of continued growth in sales, is a result of more efficient use of existing facilities and the introduction of energy-saving programs.
A number of Cisco sites, including our largest at San Jose, which accounts for 41 percent of our greenhouse gas emissions worldwide, purchase a portion of electricity from renewable sources. At San Jose 9.5 percent of the energy used comes from renewable sources, representing approximately 35,000,000 KWh each year. This translates to the elimination of some 12,700 metric tons of CO2, and is the equivalent of removing 3,000 cars from the road. At our Santa Clara facilities, 68 percent of the energy comes from renewable sources, mainly wind power. This represents 800,000 KWh, saving 290 metric tons of CO2 from being released into the atmosphere, equivalent to the removal of 70 cars from the road.
CO2 emissions and CO2 emissions per $M sales
Greenhouse Gas Emissions by Region FY2005
*Data from Cisco sites in the USA, UK, and India which account for 77% of Cisco's employee population.
Cisco has prepared our Energy and GHG Inventory in accordance with the International Greenhouse Gas Protocol's Corporate Accounting and Reporting Standard and has used associated calculation tools provided by the World Resources Institute. Emissions factors from the U.S. Environmental Protection Agency's Emissions and Generation Resource Integrated Database (eGRID) Version 2.01 have been used to calculate emissions from our U.S. operations.
The inventory includes electricity and fuel use in onsite combustion at owned and operated offices and laboratories and leased offices and laboratories where Cisco has a direct relationship with energy suppliers, owned and operated vehicles, and hydro-fluoro-carbon (HFC) refrigerants. Cisco has an ongoing program to increase the scope of the inventory and validate data.
