Input from key stakeholders and a comprehensive ESG materiality assessment1 help us set ESG strategy and goals and maximize impact. Ongoing analysis helps us align our business to the changing landscape.
An important input to our strategy and reporting is an ESG materiality assessment.1 The assessment helps us understand ESG topics that are most important to our stakeholders and continuously assess our strategy and goals. We conduct a full assessment every two years. In years that we do not conduct a full assessment, we conduct an internal assessment refresh. This helps us validate priorities relative to business risks and opportunities.
In fiscal 2023, we completed a full ESG materiality assessment.1 This assessment included using big data and input from a broader set of stakeholders to understand priority ESG topics. The analysis consisted of three phases: 1) benchmarking, analysis of global trends, and identification of ESG topics and definitions; 2) interviews with key stakeholders; and 3) in-depth analysis and summary of findings. Stakeholders included investors, employees, Cisco executives, customers, and thought leaders.
We identified 18 ESG topics that are important to our stakeholders and, of these, eight emerged as the highest in terms of importance:
In addition to our formal ESG materiality assessment,1 Cisco business teams regularly gather input from stakeholders.
We have been a strategic partner of the World Economic Forum (WEF) since 2002. Our engagement with WEF provides us with world leader insights, influences our strategy, and enables us to learn from others and share best practices. Other partnerships and memberships include Business for Social Responsibility (BSR); the Conference Board’s Sustainability Council II on Innovation and Growth; the CEF (formerly the Corporate Eco Forum); and the Responsible Business Alliance (RBA).
We also participate in a range of initiatives and organizations2 focusing on environmental and social topic areas as described here.
Cisco recognizes the power of collective action. We collaborate with a number of nongovernmental organizations (NGOs) and peer companies and join coalitions and initiatives to further sustainability practices within the technology industry. We participate in initiatives and working groups spanning a variety of sustainability topics, including GHG emissions, supply chain sustainability, circular economy, product sustainability, packaging, renewable energy, and resource efficiency. Groups we work with include, but are not limited to:
| Organization | Engagement description |
|---|---|
| Alliance for Telecommunications Industry Solutions (ATIS) | Cisco is an active member of ATIS Sustainability in Telecom: Energy and Protection Committee and engages with other member organizations to develop standards relevant to the telecommunications industry. |
| AmCham EU | Cisco is a member of Amcham EU, a trade association speaking for American businesses in Europe, working on being a constructive partner for the industrial vision of the EU Green Deal, and participating, among others, in the Environment and Transport, Energy and Climate Committees. Cisco is also an AmCham EU Executive Council member. |
| Association for Connecting Electronics Industries (IPC) | Cisco participates with IPC as they actively engage in global government relations and environmental policy advocacy. |
| Australian Packaging Covenant Organization (APCO) | Cisco is an active member of APCO—a co-regulatory, not-for-profit organization that partners with government and industry to increase sustainable packaging in Australia. Cisco has made a voluntary commitment to benchmark its circular design principles and packaging sustainability efforts against the APCO Packaging Sustainability Framework. By completing an annual report and action plan, we seek to drive sustainability across our packaging portfolio. |
| Business Roundtable (BR) | CEO-led association, looking at consistently advancing pro-growth policies, including on environment and energy to enable a competitive U.S. economy and create employment opportunities for Americans. Cisco’s Chair and CEO Chuck Robbins will be serving as the next Chair of the organization for a two-year term starting on January 1, 2024. |
| Capital Equipment Coalition (CEC) | Cisco is a member of CEC, a project of Circle Economy (formerly a project of PACE), which focuses on advancing a circular capital equipment industry. Members of the coalition share best practices and capture progress toward company pledges established in 2018. |
| Cellular Operators Association of India (COAI) | Cisco collaborates with other companies at COAI in presenting industry views on crucial issues relating to the growth and development of the Indian telecom Industry. |
| CENELEC | Cisco is actively working with CENELEC, a European standards organization, on standards for circular design. |
| Circular Electronics Partnership (CEP) | Cisco is an active participant in a multistakeholder collaboration with seven organizations [The Global Enabling Sustainability Initiative (GeSI), Green Electronics Council (GEC), International Telecommunication Union (ITU), Platform for Accelerating the Circular Economy (PACE), RBA, WEF, World Business Council for Sustainable Development (WBSCD)] and peer companies to establish a shared vision and roadmap for a circular electronics value chain. |
| Clean Energy Buyers Association (CEBA) | Cisco is a member of CEBA, which is a business association that activates a community of energy customers and partners to deploy market and policy solutions for a carbon-free energy system. Our engagement focuses on advancing clean energy procurement worldwide and supply chain decarbonization. |
| Consumer Technology Association (CTA) | Cisco is a member of CTA and actively participates in the Environmental Policy Committee. CTA works closely with state and federal regulators, legislators, and public policy stakeholders to represent the entire industry’s interests. |
| DIGITALEUROPE | Cisco is a member of DIGITALEUROPE, a trade association representing digitally transforming industries in Europe, leading industry input to the EU ICT impact study, and participating in, among others, the Ecodesign for Sustainable Products Regulation and its Digital Product Passport (DPP), Chemicals and Waste-related issues. Cisco is a DIGITALEUROPE Executive Board member and chairs DIGITALEUROPE's Green Deal Working Group. |
| Electronics Product Stewardship Canada (EPSC) | Cisco is a member of EPSC, which represents the interests of electronics manufacturers for innovation in enhanced end of life solutions for electronics products in Canada. |
| Ellen MacArthur Foundation (EMF) | Cisco was a founding partner of EMF, and we continue to leverage member connections, trainings, and shared learnings as a member of EMF. |
| ETSI | Cisco actively engages with ETSI, a European standards organization that deals with telecommunications, broadcasting, and other electronic communications networks and services. Cisco engages in material efficiency standards related to mandates from the European Commission and is leading the work on secure data deletion (EN 303 800-2) and on energy metrics for servers (EN303470). |
| European Green Digital Coalition (EGDC) | EGDC is an initiative of companies, supported by the European Commission and the European Parliament, based on the request of the EU Council, that aims to harness the enabling emission-reducing potential of digital solutions to all other sectors. Cisco has been a member since October 2021. |
| Federation of Indian Chambers of Commerce and Industry (FICCI) | Cisco participates in this platform for networking and consensus building in India. |
| Global Electronics Council's Electronic Product Environmental Assessment Tool (EPEAT) | Under EPEAT, Cisco contributes to the development of criteria addressing sustainability impacts from technology sector products and services, including EPEAT's Servers and Network Equipment product categories. Additionally, Cisco participates in EPEAT's Conformity Guidance Group (CGG) from which EPEAT seeks technical input and expertise on technical requirements in EPEAT Criteria and implementation of updated and amended EPEAT Criteria for product categories. |
| Greenhouse Gas Protocol | Cisco responds to surveys released by the GHG Protocol to provide input on potential updates to the standards. Cisco will continue to stay engaged as updates are made to the standards. |
| Information Technology Industry (ITI) Council | Cisco is a member of ITI, which educates policymakers on the role of technology in promoting a circular economy and sustainable planet. Cisco Co-Chairs the ITI Europe Sustainability Committee & Vice-Chairs the ITI Asia Pacific Regulatory & Sustainability Committee. |
| International Telecommunication Union (ITU) | Cisco is a contributor to many ITU-T SG5 standards on environmental efficiency of digital technologies, E-waste, circular economy; and sustainable supply chain management, climate change, and assessment of digital technologies in the framework of the UN Sustainable Development Goals (SDGs) and the Paris Agreement. |
| Manufacturers’ Association of Information Technology (MAIT) | Cisco actively collaborates with peer companies at MAIT in representing India’s electronics and ICT hardware sector on environmental matters. |
| Open Compute Project (OCP) | OCP is an industry collaboration focused on speeding the pace of innovation in and around the data center. Within OCP, the Sustainability Initiative is developing a detailed study of and guidance on circular design principles specifically for data center hardware. Cisco is a member of the OCP and contributed to the OCP Design for Circularity Guide. |
| Partnership to Reuse, Refill, Replace Single-Use Plastics (PR3) | Cisco is a technology sponsor of PR3, a cross-industry initiative with the goal of replacing single-use packaging by making reuse systems globally scalable, and economically, socially, and environmentally preferable for consumers and the whole value chain. |
| Product Attribute to Impact Algorithm (PAIA) | Cisco is part of a multistakeholder consortium of information and communications technology (ICT) companies using shared industry-standard inputs in the PAIA platform—hosted by MIT—that provides a streamlined methodology for ICT product environmental footprinting. |
| RE100 | Cisco is a member of RE100, the global corporate renewable energy initiative bringing together hundreds of large and ambitious businesses committed to 100% renewable electricity. |
| Reverse Logistics Association (RLA) | Cisco serves on the Advisory Board and is a Diamond member of the RLA, a global trade association for the returns and reverse logistics industry. |
| Science Based Targets initiative (SBTi) | Cisco responds to surveys released by SBTi to provide input on potential updates to the existing standard or new standards. Cisco will continue to stay engaged as enhancement are made to existing standards or new standards are developed. |
| Sustainable Packaging Coalition (SPC) | The SPC is a member-based organization dedicated to driving sustainable packaging through industry collaboration, education, and action. As an active participant in this organization, Cisco supports SPC’s goal to make the packaging industry more sustainable. |
| TechNet | Cisco participates in TechNet, which actively works at state and federal levels to advise policymakers on the benefits of authorized repair to ensure cybersecurity, product safety and intellectual property rights protection. |
| techUK | Cisco is a member of techUK, the United Kingdom’s national technology industry association. techUK helps Cisco monitor and understand a wide range of technology related policy, engage with and share expertise with policy makers, and collaborate with peer companies. |
| The Green Grid | Cisco is part of The Green Grid, where we help create tools, provide technical expertise, and advocate for the optimization of energy and resource efficiency of data center ecosystems that enable a low-carbon economy. |
| U.S. Department of Energy (DOE), Environmental Protection Agency (EPA) | Cisco has been working with the EPA to define ENERGY STAR standards for networking equipment, including SNE, LNE, telephony equipment, and servers. Cisco has also worked with Lawrence Berkeley National Laboratory, the EPA/DOE technical arm; Navigant; the National Resources Defense Council; and Ecova on measurement methodologies and metrics. |
| World Business Council for Sustainable Development (WBCSD) | Cisco is a member of WBCSD, a global community of over 200 of the world’s leading sustainable businesses working collectively to accelerate the system transformations needed for a net-zero, nature-positive, and more equitable future. |
| Organization | Engagement description |
|---|---|
| Alliance for Water Stewardship (AWS) | Cisco has adopted AWS International Water Stewardship Standard for evaluating and driving water stewardship in the supply chain. |
| Asia Clean Energy Coalition (ACEC) | Cisco participates with other key stakeholders in supporting policy development to facilitate corporate renewable electricity procurement throughout Asia. |
| CDP (formerly Carbon Disclosure Project) | Cisco discloses our sustainability initiatives publicly through CDP’s annual Climate Change and Water questionnaires and engages our supply chain partners to publicly disclose through CDP as well. Cisco is also a member of the CDP Supply Chain IT Member Working Group, focused on improved reporting and engagement with suppliers in the technology sector. |
| Clean Electronics Production Network (CEPN) | We are a full member of CEPN, a multistakeholder network with the goal to address workers' exposure to toxic chemicals during electronics manufacturing. We work to develop tools for due diligence and identify best practices to be propagated in the supply chain. |
| European Partnership for Responsible Minerals (EPRM) | We are a member of EPRM, a multistakeholder partnership aimed at increasing the availability of responsibly produced minerals through supporting mine sites and mid- and downstream companies, as well as strengthening linkages between production and sourcing. |
| Institute of Public and Environmental Affairs (IPE) | Cisco has an ongoing partnership with IPE to help prevent, mitigate, and remediate environmental risks with supplier sites in mainland China. |
| Public Private Partnership for Responsible Minerals Trade (PPA) | Cisco is a member of this multisector initiative that supports efforts to improve the due diligence and governance systems needed for ethical mineral supply chains. |
| Responsible Business Alliance (RBA) | Cisco is an original founder and full member of the RBA. We collaborate with peers at the RBA to propagate best practices across the industry and supply chain. |
| RBA Chemical Management Taskforce | We promote the adoption and dissemination of tools and resources to improve chemical management practices and protect workers from exposure to chemicals in the electronics supply chain. |
| RBA Environmental Sustainability Working Group (ESWG) | We collaborate with peers and suppliers at the RBA ESWG to develop tools and disseminate resources to build more sustainable supply chains. |
| RBA Indirect Spend Working Group | Cisco collaborates with other member companies to identify, address, and manage social and environmental risks in the nonmanufacturing and service supply chains. |
| RBA Validated Assessment Program (VAP) Advisory Council | We collaborate and participate in RBA's VAP Advisory Council to support the industry’s implementation of the RBA VAP. |
| RBA VAP Working Group | Cisco participates in RBA's VAP Working Group, which comprises member companies who monitor the progress and implementation of the RBA VAP. |
| RBA Worker Voice Working Group | We participate in the RBA’s Worker Voice Working Group to advance tools, processes, and cross-industry best practices around worker voice initiatives. |
| Responsible Labor Initiative (RLI) | We actively participate on the Steering Committee of the RLI, a multistakeholder initiative focused on ensuring the rights of workers vulnerable to forced labor in global supply chains. |
| Responsible Minerals Initiative (RMI) | We actively participate and collaborate with peer companies at RMI to address concerns and develop new solutions for responsibly sourcing minerals. |
| Scalable Trade for Artisanal Gold (STAG) | Cisco supports this cross-sector initiative to develop secure and responsible routes for artisanal gold to enter the electronics supply chain. We collaborate with partners to advance mining standards, meet downstream expectations, and improve the livelihoods of artisanal miners. |
1 ESG materiality, as referred to in this website and in our ESG reporting, and our ESG materiality assessment process are different from “materiality” in the context of Securities and Exchange Commission (SEC) disclosure obligations. Issues deemed material for purposes of our ESG reporting and for purposes of determining our ESG strategy may not be considered material for SEC reporting purposes, nor does inclusion of information in our ESG reporting indicate that the topic or information is material to Cisco’s business or operating results.
2 Cisco publicly discloses membership of associations/(con)federations/networks and other bodies in the EU, via the EU Transparency Register. Additionally, Cisco discloses U.S. trade association payments of US$25,000 or more on our government affairs webpage.
Matrix of 18 material topics categorized by environment, social, and governance. The horizontal axis represents significance to Cisco’s business, while the vertical axis represents significance to Cisco’s stakeholders for each issue.
