cisco's green story for greening greater toronto

© 2009 Cisco Systems, Inc. All rights reserved. Cisco Confidential14800_09_2008_c1 1

Cisco’s Green Story

told by Rick Huijbregts VP Smart + Connected Communities | Real Estate

© 2009 Cisco Systems, Inc. All rights reserved. Cisco PublicPresentation_ID 2

65,000EMPLOYEES

40,000,000,000US$


18,000,000SF GLOBAL

119,000SF CANADA

400LOCATIONS


52,000RSF TORONTO

470EMP. TORONTO

111RSF P. EMPLOYEE



Cisco’s EcoBoard

Cisco’sGreenVision

GreenerOperations

GreenerSolutions



Cisco’s EcoBoard


GreenerOperations

GreenerSolutions


Collaboration

Capabilities

EcoBoard Cross-Functional Structure

Market Access DifferentiationMarket

EnablementPositioning/Competition

Collaboration

Corporate Sustainability Green Engineering Green to Market

Engineering Sales Communications

Initiatives / Task Force Teams

Gov’t Affairs

Legal


CustomersCustomersEmployeesEmployees

Suppliers Suppliers Nonprofit/NGO/

VolunteerOrganizations

Nonprofit/NGO/Volunteer

Organizations

Local, Regional,and NationalGovernments

Local, Regional,and NationalGovernments

Regulatoryand Compliance

Bodies

Regulatoryand Compliance

Bodies

Industry and Financial Analysts

Industry and Financial Analysts PartnersPartners

Cisco’s Green Ecosystem


Cisco’s Commitment

25% Reduction in GHG Emissions by 2012

Labs and data centers Cisco connected workspace Collaboration technologies

Year One Results: 27.7 Percent Reduction in GHG Emissions

40%2010


Cisco’s EcoBoard


GreenerOperations

GreenerSolutions


strategy

visionIf it can be connected to the Internet, it can be greener; the network is the platform for sustainability and green innovation

Green Collaborative Working Model

Initiatives & Programs to drive results Capabilities to sustain differentiationexecution

Cisco’s Green Vision


How a Small Part of the ProblemCan 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 ModelsEnergy Efficiency R&D InvestmentsNew EcosystemsNew Regulatory ModelsActive Carbon Markets


How a Small Part of the ProblemCan Be a Big Part of the Solution

Make Every Connection aGreener Connection

MONITOR

MANAGE

REDUCE

Electricity use in offices Appliances in homes Traffic flows in cities


Commitment to Standards

By actively participating in these organizations, groups, and others.

Cisco is playing a leadership role in the development and consistent application of environmental standards.


Cisco’s EcoBoard


GreenerOperations

GreenerSolutions


Sustainable Company Operations

Energy efficiency and responsible use of scarce resources in our labs, data centers and office buildings.

Strategic procurement of renewable energy in our operations.

Lowering energy consumption, reducing business air travel, and using technology to reduce our overall GHG emissions.

Understanding and reducing our environmental impacts and helping others do the same.

Involving employees in all aspects of the company’s environmental efforts.


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.


Headcount ChangeYear to Year

Revenue ChangeYear to Year

GHG Emissions from Air Travel Change Year to Year

FY05 FY06 FY07 FY08 FY06 to FY08

5% 13% 19% 20% 42%

13% 15% 23% 14% 40%

23%* 13%* 4% <1% 5%

From Carbon to Collaboration

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.

GHG Emissions from Air Travel Compared to Headcount and Revenue

*Percent change in GHG emissions based on previously reported FY04 and FY05 air travel emissions.

© 2007 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 19

Solutions: TelePresence Converging All Forms of Human Expression

“The Best of 2006”“The Best of 2006”

Reduced overall company carbon emissions by 10%Reduced overall company carbon emissions by 10%

Better customer service, improved quality of life

Better customer service, improved quality of life

Helping Business Become “Green”

Helped Cisco cut 1B miles of annual air travel by 20%Helped Cisco cut 1B miles of annual air travel by 20%

165k mtgs avoided travel

US$ 661M cost savings on travel

US$ 250M in productivity cost savings

357k metric tons of GHG emissions saved


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


Green Value Chain Management

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.

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.

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.


Efficient Use of Power in OurBuildings, 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.


Reducing Water UseConserving 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.

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.

Cisco uses reclaimed water for landscaping and similar applications. In California alone, we are saving more than 81 million gallons of water each year.

Washing of PCBs with water during the manufacturing process is being eliminated. In FY09, 86% of Cisco PCBs were produced without such washing.


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.


Green Power Purchasing

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.

Cisco Green Power Purchases

Green Power (kWh)

Emissions Reductions (tCO2e)

Equivalent Number ofPassenger Cars

FY07 FY08 FY09

110,000,000 342,000,000 466,000,000

64,300 239,400 352,500

11,800 43,800 64,600


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, reducesenergy usage acrossentire infrastructure

Open technology

Collaborative Cross-Industry Effort


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.

Connected Workplace at Cisco

Estimated Energy EfficiencyGains with Connected Workplace

Number of Employees

TraditionalOffice

300

Cisco ConnectedWorkspace

PercentChange

40033%

Increase

Connected Electrical Load(watts/square footage) 2.6 1.7

36%Reduction

Connected Electrical Load(watts/employee) 432.9 178.7

58%Reduction

Total Connected Electrical Load(watts) 127,169 71,476

44%Reduction

Total Cooling Loads (BTUs) 433.646 243,73344%

Reduction

Total Cooling Provision Tonnage 36 2044%

Reduction

© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential 31

Social

Child Care CentreCollaboration Areas Cafeteria

Environmental

Above LEED Standards:

25% above for lighting energy

27% above for water consumption

31% above for cooling energy

Enhanced air quality by 30%

Economic

Annual Payback of:

OpEx savings of ~15%

Employee productivity of +9%

Energy efficiency of +30%

The Banyan Building: Built for Sustainability

Total Savings: 1005 MWh


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.

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.

Nurturing a Green Culture


Cisco’s EcoBoard


GreenerOperations

GreenerSolutions


Helping Customers Meet Their Green Goals

Innovative Business Processes

Extended Lifecycle Optimized Processes Simplified Architectures

Operational Efficiency

Energy Savings Power Management Tracking and Reporting Infrastructure Consolidation

Virtual Worker Remote Collaboration Resource Virtualization


Business Behavior

Product Efficiency

Energy Savings

Cisco EnergyWise

Intelligent Traffic Redirect

Trusted Flow Acceleration

Service andApplicationIntegration

Power Monitoring & Allocation

Data Center 3.0 Adaptive Power Management

Cisco Virtual Office

Data Center Services

Cisco Motion

Cisco Collaboration UC & TP Services

Cisco TelePresence

PoE Device Power Control

High-EfficiencyPower Supplies

Higher Performance Per Watt

Connected Real Estate

Continuum of Greener IT Innovations