Cisco deploys an Environmental Management System (EMS) to comply with environmental regulations and continuously improve our environmental performance. Cisco’s EMS drives a continual cycle of planning, implementation, reviews, and further improvements. The EMS also provides a framework for documenting compliance with environmental regulations such as ISO 14001, a standard that specifies requirements for environmental management that can be certified through an audit. Most of our major worldwide facilities are ISO 14001 certified.

At each Cisco site, included in the program, a team uses the EMS framework to identify, prioritize, and manage the most relevant and important environmental impacts. Issues range from managing hazardous materials, to increasing employee awareness of environmental practices, to monitoring waste water treatment. Initiatives may arise from site-specific operational practices or from local community concerns. Cisco identifies best practices through the EMS audit program and disseminates them throughout the company.

The EMS program also includes Facilities Vendor Management and Auditing. At our San Jose campus, for example, all waste vendors providing recycling, compost, and construction/demolition debris services to Cisco are audited annually to help ensure that they meet appropriate waste disposal requirements.

Virtual EMS Auditing

The wide geographical distribution of Cisco sites has led to significant travel during the auditing process. We have developed a virtual auditing approach that uses Cisco collaboration technologies to increase efficiency and reduce the expense and environmental impact of traveling to audited sites. During CY07 approximately 30 percent of ISO 14001 internal audits have been remote, or virtual, audits. In addition, Cisco is one of the first companies to pilot virtual external ISO 9001 registration audits with TUV America, our ISO 14001 and ISO 9001 certification partner.

The number of EMS audit days during CY07 is expected to increase to 115.5.

Future Plans

By the end of the 2007 calendar year, we expect that 20 Cisco sites will have earned ISO  14001 certification, increasing the percentage of Cisco’s employee population covered by EMS activities to approximately 68 percent.

By the end of calendar year 2007, we expect to obtain ISO  14001 certification for our sites in Bangalore, Beijing, Chicago, New York, Shanghai, and Singapore.

In FY07 we focused on integrating our EMS with other corporate programs and practices to improve organizational effectiveness. During FY08 we will continue to use our EMS program to support corporate initiatives on energy, greenhouse gas emissions, and waste management, with the aim of driving consistent performance and improving general environmental awareness within Cisco.