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Cisco’s Environmental
Sustainability Strategy Governance of environmental
sustainability topics Active targets and goals
Scope 1-3 emissions summary Completed goals Historic GHG methodology

Strategy, goals, and emissions data

We are accelerating the transition to clean energy, evolving our business to circular, and investing in resilient ecosystems.

Cisco is embedding sustainability into the way we operate. We believe that through collaboration, we can help build not just a sustainable future, but a regenerative one. This means moving to a mindset in which we build the capacity of our social and environmental systems to heal and thrive.

Our holistic approach to environmental sustainability includes how we operate our business, how we help our customers and suppliers make progress toward their sustainability goals, and how we do our part to help the world adapt to a changing climate.

Cisco’s Environmental Sustainability Strategy

In fiscal 2023, we developed the next generation of our environmental sustainability strategy: the Plan for Possible. The Plan for Possible lays out our three key priorities for helping to create a regenerative future:

Priority 1: Transition to clean energy

To power the world with renewables, the grid requires updated digital infrastructure to connect diverse, decentralized sources of clean energy. But even as the world electrifies, it must simultaneously reduce the amount of energy used by a connected economy.

One important piece of Cisco’s clean energy strategy is our goal to reach net zero greenhouse gas (GHG) emissions across our value chain by 2040 by prioritizing reductions across all scopes of emissions. We are proud that Cisco’s 2040 net-zero goal was approved by the Science Based Targets initiative (SBTi) in 2022 under its Net-Zero Standard. Cisco was one of the first technology hardware and equipment companies to have its net-zero goal validated under the SBTi Net-Zero Standard.

Net zero strategy

For Cisco, our biggest source of emissions comes from the electricity used to power the products we sell (Scope 3 Category 11). To make progress toward our net zero goal, Cisco must prioritize energy efficiency innovation; connecting clean energy; and collaborating with our customers, partners, and suppliers to accelerate the transition to renewable sources of energy. Some of the cross-functional initiatives we undertook in fiscal 2023 to reduce all scopes of emissions include:

  • Investing in renewable energy within our own operations, supporting suppliers in their clean energy transitions, and engaging with governments to advocate for policy changes that lead to the advancement of the decarbonization of the global grid
  • Continuing to invest in increasing the efficiency of our products to consume less energy, which can help to reduce customers’ emissions
  • Increasing the energy efficiency of our buildings, with a focus on electrification, to reduce emissions from our operations
  • Prioritizing circularity and waste reduction as a part of business model decisions

For more details about our net-zero strategy, please read The Plan for Possible.

Priority 2: Evolve to a circular and regenerative economy

Now is the time to accelerate the transition from a linear economy that extracts resources and eventually wastes them, to a circular one that finds new uses for products and their inputs. We aim to transform our business to extend the useful life of our products and provide ongoing services.

We are embedding circularity into how we design our products and packaging. This means designing to enable reuse, minimize environmental impacts, drive innovation, and realize value for our stakeholders. We are deploying new offerings that help Cisco and our customers capture more value throughout a product’s life, such as payment solutions and as-a-service models designed with circularity in mind. And we are striving to minimize waste and extend the lifecycle of our products by recapturing hardware and redeploying those assets through remanufacture, reuse, and recycling. Circularity is a business model that is both good for business and good for the planet.

Priority 3: Invest in resilient ecosystems

Value chains benefit from resilient ecosystems, both financially and ecologically, and it is in our shared interest to help humans and nature navigate a changing climate by investing in technologies and workforces that support a regenerative economy, as well as investing in nature itself. This includes enabling communities to adapt to climate realities, cultivating skills and talent for the regenerative economy, and deploying technology to protect and restore ecosystems and biodiversity.

In 2021, the Cisco Foundation—a charitable organization established in 1997 with a gift from Cisco—committed to investing US$100 million over the next 10 years in climate solutions that draw down the carbon already in the atmosphere and/or regenerate depleted ecosystems. The Cisco Foundation funding takes two main forms: impact investments in for-profit ventures, and grant funding for nonprofits and NGOs. This innovative blended finance approach allows the Cisco Foundation to seek out and scale the best solutions, no matter their profit model or financing avenues available to support such early-stage ventures. One funding recipient is Nia Tero and their initiative to train Indigenous community members as technicians who build, operate, and maintain solar electric shuttle boats in rainforest communities. These boats can reduce deforestation by removing the need to create roads, while creating economic opportunity for community members.

As another example, we seek to reduce water use as much as we can in our operations and supply chain. Cisco recognizes that water is a vital shared resource that we share with the communities where we operate. Water challenges are projected to grow more acute as the impacts of climate change—like droughts, extreme weather, flooding, degraded water quality, and water scarcity—intensify and become more widespread.

Cisco Foundation climate funding disbursed since 2021
Grants US$10.1M
Impact Investments US$9.7M
Total US$19.9M

Additional examples of how Cisco and the Cisco Foundation are making progress in this area include:

  • We have a multiyear, multimillion-dollar partnership with Mercy Corps, the global humanitarian nonprofit, to help them develop and scale technology-enabled climate solutions that can build resilience in communities that are experiencing devastating drought conditions in Kenya. We support local partners to develop digital services that can help agricultural and pastoralist communities adopt climate-resilient approaches to nature resource and land management.
  • We assist those experiencing severe effects of a changing climate through the Cisco Crisis Response Team, which can respond when natural disasters and other crises affect communities. This team can provide emergency connectivity for local organizations so they can speed the delivery of food, water, medical care, and other aid, and begin to rebuild. They also help nonprofits and other organizations build their capacity to respond to crisis, build stronger communities, and adapt to climate realities.
  • The Cisco Networking Academy program helps build the skills and capabilities for a digital, regenerative economy.
  • Since 2015, Cisco surveillance, data, and analytics technologies have been used to protect endangered species around the world through Connected Conservation—the first solution of its kind to proactively protect animals while leaving them to roam freely.

By putting possible into action, we can accelerate the world’s transition into a regenerative future.

Governance of environmental sustainability topics

Cisco named Mary de Wysocki as our first-ever Chief Sustainability Officer in fiscal 2023. Mary leads the company’s environmental sustainability strategy, oversees its progress toward public environmental goals, and helps Cisco drive long-term value for the business, its value chain, and the planet.

At Cisco, environmental sustainability spans multiple functions and job roles. We continue to enhance governance to mitigate risk and oversight of our ESG efforts. In fiscal 2023, we enhanced governance by:

  • Creating the Cisco Sustainability Council to drive cross-company governance and execution. The Council includes Vice President and Senior Vice President representation from critical functions throughout the company, including Finance, Legal, Supply Chain, Engineering, Operations, Communications, IT, Procurement, Government Affairs, Cisco Services, Sales, our Partner organizations, and the Chief Sustainability Office.
  • Creating a new Board committee, the Environmental, Social and Public Policy (ESPP) Committee, which oversees Cisco’s initiatives, policies, programs, and strategies concerning environmental sustainability and other key corporate social responsibility (CSR) and public policy matters, as more fully set forth in the Committee's Charter.
  • Establishing governance processes for external communications, public goals, and claims related to sustainability.
  • Performing a Task Force on Climate-related Financial Disclosures (TCFD) scenario analysis.
  • Building a sustainability data foundation to further support reporting consistency, strategy, product design, and customer needs.

Active environmental targets and goals

Our goal to reach net zero by 2040 includes two near-term targets and a long-term target:

Cisco net-zero targets
Date goal announced Target timeframe Target FY23 progress (against base year unless otherwise specified)
Date goal announced: September 2021 Target timeframe: Long-term Target: Reach net zero GHG emissions across our value chain by reducing absolute scope 1, 2, and 3 emissions by 90% by 2040 (FY2019 base year).1 See Scope 1-3 summary table below for details or visit our net-zero page. FY23 progress (against base year unless otherwise specified): Active. We are reporting progress in the following rows through our FY25 and FY30 near-term targets.
Date goal announced: September 2021 Target timeframe: Near-term Target: Reduce absolute Scope 1 and Scope 2 emissions by 90% by FY25 (FY19 base year).1 FY23 progress (against base year unless otherwise specified): 48%
Date goal announced: September 2021 Target timeframe: Near-term Target: Reduce absolute Scope 3 emissions from purchased goods and services, upstream transportation and distribution, and use of sold products by 30% by FY30 (FY19 base year).2

See Scope 1-3 summary table below for details.		 FY23 progress (against base year unless otherwise specified): 14%3

We expect our progress to fluctuate year-over-year based on the number and type of products we sell each year. Due to increased product sales, there was an increase in GHG emissions in FY23, thus progress has decreased from FY22.

1 We will neutralize any remaining emissions by removing an equal amount from the atmosphere.

2 The baseline and progress reported for our fiscal 2030 goal includes: purchased goods and services from manufacturing, component, and warehouse suppliers; upstream transportation and distribution from Cisco purchased air transportation; and use of sold products.

3 We updated our methodology in fiscal 2023 for calculating “Scope 3 Category 11: Use of sold products” to further align with the Greenhouse Gas Protocol. For more information on our current methodology, as well as data and goal tracking using our previous methodology, visit the Historic GHG methodology discussion in the Strategy, goals, and emissions data section on our ESG Reporting Hub.

In addition to our net-zero goal, Cisco made additional public environmental commitments that reflect our aspiration and willingness to tackle difficult problems. We also set internal annual targets that are reviewed on a regular cadence to support progress toward our public goals. Cisco's publicly stated environmental goals align with the United Nations Sustainable Development Goals (SDGs).

Links in the left-hand column in the table below direct to Cisco's public announcement of each goal. Links in the goal column direct to other places where we report performance against a goal.

Active Cisco environmental goals
Date goal announced Goal topic Goal FY23 progress (against base year unless otherwise specified)
Date goal announced:August 2019 Goal Topic:Energy/GHG Goal:80% of Cisco component, manufacturing, and logistics suppliers by spend have a public, absolute GHG emissions reduction target by FY25.4 See Supply Chain Environmental Stewardship for details. FY23 progress (against base year unless otherwise specified):92%
Date goal announced:July 2019 Goal Topic:Product and packaging materials Goal:
  1. 100% of new Cisco products and packaging to incorporate Circular Design Principles by FY25.5
 FY23 progress (against base year unless otherwise specified):27% meeting circular design criteria
Goal:
  1. Reduce foam used in Cisco product packaging by 75%, measured by weight, by FY25 (FY19 base year). 6 See Packaging for details.
 FY23 progress (against base year unless otherwise specified):22% reduction
Goal:
  1. Increase product packaging cube efficiency by 50% by FY25 (FY19 base year).7 See Packaging for details.
 FY23 progress (against base year unless otherwise specified):65% cumulative improvement
Goal:
  1. 70% of Cisco component and manufacturing suppliers by spend achieve a zero-waste diversion rate at one or more sites by FY25.8 See Supply Chain Environmental Stewardship for details.
 FY23 progress (against base year unless otherwise specified):60% by spend with at least one certified site
Date goal announced:October 2022 Goal Topic:Product and packaging materials Goal:50% of plastic used in our products (by weight) will be made of recycled content by FY25.9 FY23 progress (against base year unless otherwise specified):24%

4 Suppliers are expected to set absolute GHG emissions reduction targets or intensity targets that produce an absolute emissions reduction during the target period. Cisco encourages suppliers to set targets in line with an approved science-based methodology. Progress toward this goal is quantified using Cisco’s supply chain spend which can vary annually. Cisco will continue to work with suppliers to set their own absolute GHG emissions reduction targets, and to report progress toward this goal annually through fiscal 2025.​

5 The scope of this goal is limited to hardware products and associated packaging, excluding: standalone components (e.g., chassis, ASICs, optical modules), standalone basic product accessories (e.g., power cables, brackets), Original Equipment Manufacturer products (where Cisco does not own the design), products and packaging of nonintegrated acquisitions. Product and packaging designs achieving a score of 75 percent or higher are counted toward the goal.

6 To improve measurement accuracy, we changed our methodology for this goal in fiscal 2023 to calculate the foam used in our shipped product packaging instead of the total foam purchased from suppliers. The base year (fiscal 2019) foam use was recalculated using the updated methodology, and fiscal 2023 progress is measured against this.

7 Packaging efficiency is measured by comparing the size of the product relative to the packaging, using dimensional weight. Dimensional weight uses volume and a standard dimensional factor to calculate the weight of a package. In this methodology, the packaging efficiency metric is based on the difference of the normalized dimensional weight (by volume) between the baseline and current year. In fiscal 2023, our calculation methodology was updated, and we are using that to report our fiscal 2023 progress. This goal applies to high-volume packaging requiring redesigns.

8 According to current standard definitions used in certification protocols, “zero-waste” diversion is defined as a 90 percent or greater overall diversion of solid, nonhazardous wastes from landfill, incineration (waste-to-energy), and the environment. Diversion methods can include reduction, reuse, recycling, and/or compost.

9 The scope of this goal excludes plastics contained in commodity components (e.g., plastic screws, fans, and cables) and in products designed and manufactured by our Original Design Manufacturers.

Scope 1-3 emissions summary

The table below summarizes our Scope 1, 2, and 3 emissions. For information about specific Scope 3 categories, please see the drop-downs below, or reference C6.5 of our 2023 CDP (formerly Carbon Disclosure Project) response. Details on Cisco’s operational energy use and Scope 1 and 2 emissions are included in Our operations.

Important context for understanding the values provided:

  • We are continuously enhancing our methodology for calculating several Scope 3 categories. As a result, Scope 3 figures reported in the table below may differ from those reported in previous versions of the ESG Reporting Hub and historical CDP responses. We report the most up-to-date data available as our methodologies improve.
  • Scope 3 figures can vary from year to year based on various factors, for example, changes in sales and supply chain spend.
  • Every year, companies reporting GHG emissions as part of CDP’s supply chain program submit data for their last completed fiscal year for which data is available. In Cisco’s case, we reported fiscal 2022 data in July 2023, because our fiscal 2023 data was not yet available. Therefore, we will report fiscal 2023 data in 2024 to CDP.
Scope 1-3 emissions summary
Emissions category CDP response evaluation status FY19 base year (metric tonne CO2e) FY20 (metric tonne CO2e) FY21 (metric tonne CO2e) FY22 (metric tonne CO2e) FY23 (metric tonne CO2e)
Emissions category:Scope 1 emissions CDP response evaluation status:N/A FY19 base year (metric tonne CO2e):47,276 FY20 (metric tonne CO2e):38,743 FY21 (metric tonne CO2e):26,694 FY22 (metric tonne CO2e):34,931 FY23 (metric tonne CO2e):40,402
Emissions category:Scope 2 location-based emissions CDP response evaluation status:N/A FY19 base year (metric tonne CO2e):651,331 FY20 (metric tonne CO2e):607,218 FY21 (metric tonne CO2e):579,445 FY22 (metric tonne CO2e):564,012 FY23 (metric tonne CO2e):568,141
Emissions category:Scope 2 market-based emissions CDP response evaluation status:N/A FY19 base year (metric tonne CO2e):187,428 FY20 (metric tonne CO2e):163,645 FY21 (metric tonne CO2e):147,801 FY22 (metric tonne CO2e):108,373 FY23 (metric tonne CO2e):81,711
Emissions category:Scope 3 emissions total CDP response evaluation status:N/A FY19 base year (metric tonne CO2e):26,479,732 FY20 (metric tonne CO2e):21,542,949 FY21 (metric tonne CO2e):20,399,732 FY22 (metric tonne CO2e):17,845,589 FY23 (metric tonne CO2e):22,115,029
Emissions category:Category 1: Purchased goods and services CDP response evaluation status:Relevant, calculated FY19 base year (metric tonne CO2e):6,873,154 FY20 (metric tonne CO2e):5,822,879 FY21 (metric tonne CO2e):5,379,884 FY22 (metric tonne CO2e):4,764,119 FY23 (metric tonne CO2e):4,970,027
Emissions category:Category 2: Capital goods1 CDP response evaluation status:Relevant, calculated FY19 base year (metric tonne CO2e):N/A FY20 (metric tonne CO2e):N/A FY21 (metric tonne CO2e):N/A FY22 (metric tonne CO2e):N/A FY23 (metric tonne CO2e):130,218
Emissions category:Category 3: Fuel- and energy-related activities (not included in Scope 1 or 2) CDP response evaluation status:Relevant, calculated FY19 base year (metric tonne CO2e):120,398 FY20 (metric tonne CO2e):110,917 FY21 (metric tonne CO2e):105,740 FY22 (metric tonne CO2e):92,562 FY23 (metric tonne CO2e):108,750
Emissions category:Category 4: Upstream transportation and distribution2 CDP response evaluation status:Relevant, calculated FY19 base year (metric tonne CO2e):989,830 FY20 (metric tonne CO2e):846,694 FY21 (metric tonne CO2e):756,169 FY22 (metric tonne CO2e):835,024 FY23 (metric tonne CO2e):1,010,261
Emissions category:Category 5: Waste generated in operations CDP response evaluation status:Relevant, calculated FY19 base year (metric tonne CO2e):816 FY20 (metric tonne CO2e):1114 FY21 (metric tonne CO2e):509 FY22 (metric tonne CO2e):569 FY23 (metric tonne CO2e):621
Emissions category:Category 6: Business travel CDP response evaluation status:Relevant, calculated FY19 base year (metric tonne CO2e):387,856 FY20 (metric tonne CO2e):182,638 FY21 (metric tonne CO2e):7283 FY22 (metric tonne CO2e):81,815 FY23 (metric tonne CO2e):216,735
Emissions category:Category 7: Employee commuting CDP response evaluation status:Relevant, calculated FY19 base year (metric tonne CO2e):79,735 FY20 (metric tonne CO2e):49,463 FY21 (metric tonne CO2e):4575 FY22 (metric tonne CO2e):7249 FY23 (metric tonne CO2e):14,586
Emissions category:Category 8: Upstream leased assets CDP response evaluation status:Not relevant, explanation provided          
Emissions category:Category 9: Downstream transportation and distribution2 CDP response evaluation status:Relevant, calculated FY19 base year (metric tonne CO2e):150,100 FY20 (metric tonne CO2e):103,854 FY21 (metric tonne CO2e):102,983 FY22 (metric tonne CO2e):79,164 FY23 (metric tonne CO2e):91,409
Emissions category:Category 10: Processing of sold products CDP response evaluation status:Not relevant, explanation provided          
Emissions category:Category 11: Use of sold products3 CDP response evaluation status:Relevant, calculated FY19 base year (metric tonne CO2e):17,867,750 FY20 (metric tonne CO2e):14,416,920 FY21 (metric tonne CO2e):14,033,250 FY22 (metric tonne CO2e):11,978,535 FY23 (metric tonne CO2e):15,563,298
Emissions category:Category 12: End-of-use treatment of sold products (end-of-life) CDP response evaluation status:Relevant, calculated FY19 base year (metric tonne CO2e):10,093 FY20 (metric tonne CO2e):8470 FY21 (metric tonne CO2e):9339 FY22 (metric tonne CO2e):6552 FY23 (metric tonne CO2e):9124
Emissions category:Category 13: Downstream leased assets CDP response evaluation status:Not relevant, explanation provided          
Emissions category:Category 14: Franchises CDP response evaluation status:Not relevant, explanation provided          
Emissions category:Category 15: Investments CDP response evaluation status:Not relevant, calculated Screened for relevance in fiscal 2019, determined to be immaterial

1 Emissions for capital goods were included in Category 1 for fiscal 2019 to fiscal 2022.

2 Air transportation emission factors from the United Kingdom’s Department for Energy Security and Net Zero (DESNZ)/Department for Business, Energy & Industrial Strategy (BEIS) (formerly Department for Environment Food and Rural Affairs (DEFRA)) include direct and indirect climate change effects.

3 We have updated our methodology for calculating “Scope 3 Category 11: Use of sold products” to align with the Greenhouse Gas Protocol. For more information on our current methodology, as well as data and goal tracking using our previous methodology, see our Historic GHG methodology below.

Each year, an independent third party provides a limited assurance review of our Scope 1 and 2 GHG inventory. In fiscal 2022, we expanded the assurance review to include the Scope 3 categories we report on in the table above. This review is conducted in accordance with the ISO 14064-3 International Standard. After the review is completed, we update the emissions data in the ESG Reporting Hub and related disclosures to align with the assurance statements. Cisco’s Scope 1–3 assurance statement for fiscal 2023 will be available in March 2024. Assurance statements from previous fiscal years are available at the links below:

Scope 3 emissions

The majority of Cisco's emissions footprint is attributable to the use of our products, our supply chain, and other indirect emissions sources. For information about specific Scope 3 categories, please see the descriptions below, or reference question C6.5 of our 2023 CDP Climate response. Cisco calculates our Scope 3 GHG emissions based on the Greenhouse Gas (GHG) Protocol guidance for calculating Scope 3 emissions (version 1.0).

This Scope 3 category is relevant to Cisco because the manufacturing and warehousing of components, products, and services purchased by Cisco produce upstream emissions. It includes cradle-to-gate emissions from both direct and indirect procurement. Direct procurement covers production-related products while indirect procurement covers nonproduction-related products. The boundary incorporates the allocated GHG emissions of our Tier 1 and Tier 2 manufacturing, component, and warehouse suppliers. Emissions are allocated based on Cisco’s financial share of suppliers’ reported global Scope 1 and Scope 2 GHG emissions through CDP. As a member of the CDP Supply Chain Program, we request that our direct suppliers with whom we have a significant business relationship report their carbon impacts to CDP.

With Cisco and the broader electronics industry relying on suppliers worldwide to manufacture components and assemble, test, and ship products, supply chain emissions make up a significant proportion of Cisco’s GHG footprint. To help us understand critical impacts in our supply chain, we use recognized global frameworks and industry standards for accountability and reporting.

Emissions from our Tier 1 and 2 suppliers are included in our fiscal 2030 near-term target, which is part of our 2040 net zero goal. We are working with these manufacturing, component, and warehouse suppliers to set and make progress toward absolute emissions targets, which will be critical to our ability to reduce our supply chain emissions by 30 percent absolute by fiscal 2030.

In addition, we are estimating our Tier 3+ suppliers’ upstream impact using an environmentally extended input-output model. Cisco also prioritizes engagement with indirect preferred suppliers with whom we have a strategic business relationship. This group of preferred indirect suppliers makes up more than half of overall indirect spend with ongoing supplier consolidation efforts. Scorecards are used to communicate and manage supplier performance on responsible business practices.

This Scope 3 category is relevant to Cisco because the production of capital goods purchased by Cisco produces upstream emissions. We use a spend-based methodology for calculating emissions from capital goods in this category. An environmentally extended input-output model is used to estimate emissions from capital expenditure.

This Scope 3 category is relevant to Cisco because we purchased and consumed fuel and energy during the reporting year. We use a fuel-based methodology to calculate emissions from this category. The fuel and electricity consumption data required for this emissions calculation were obtained directly from Cisco’s Scope 1 and 2 inventory.

This Scope 3 category is relevant to Cisco because emissions arise from the transportation and distribution of our products in the value chain. The boundary incorporates the GHG emissions from transportation and distribution services directly purchased by Cisco during the reporting year. While this category covers all modes of transport that are used by our logistics partners, the majority of these emissions are related to air transportation used to deliver products and services within our manufacturing and distribution networks. The emission factors from DESNZ/BEIS (formerly DEFRA) used to quantify air transportation emissions include direct and indirect climate change effects. The scope of these emissions also includes outbound transportation paid for by Cisco (in accordance with the GHG Protocol). These air transportation emissions are included in our fiscal 2030 near-term target, which is part of our 2040 net zero goal.

This Scope 3 category is relevant to Cisco because we generate waste within our operations. We use a waste-type-specific method to calculate our emissions for this category. The emissions from landfilled and recycled waste are calculated using waste data from Cisco’s onsite waste management vendors. The emissions from eWaste are calculated using waste data from Cisco’s recycling partners, who recycle both eWaste generated at Cisco’s facilities and at our customers’ facilities. Learn more about product recycling.

This Scope 3 category is relevant to Cisco because our employees travel on behalf of Cisco to conduct business. We continue to refine and use a combination of distance-based, fuel-based, and spend-based methodologies to calculate our emissions for this category. As a result, the current values listed in the Scope 3 table above differ from historically reported figures and the figures reported in our 2023 CDP Climate response. The restatement of fiscal 2019-fiscal 2022 emissions include additional ground transportation modes. The emissions factors from DESNZ/BEIS (formerly DEFRA) used to quantify air transportation emissions include direct and indirect climate change effects. Due to the impacts of COVID-19 on corporate travel, our Scope 3 business travel emissions are approximately 44 percent less than for fiscal 2019, prior to the pandemic.

In January 2023, Cisco joined the United Airlines Eco-Skies Alliance. The Eco-Skies Alliance brings together leading global corporations and United to help power flying in a more sustainable way by investing in sustainable aviation fuel (SAF). SAF is a biofuel used to power an aircraft that has similar properties to conventional jet fuel but with a smaller carbon footprint. Depending on the feedstock and technologies used to produce it, SAF can reduce lifecycle GHG emissions dramatically, compared to conventional jet fuel. While SAF is not widely available today, with this investment, Cisco is helping provide a demand signal to improve production. We have not incorporated SAF into our fiscal 2023 emissions accounting reporting.

This Scope 3 category is relevant to Cisco because our employees commute to their work location. We use an average data method and a distance-based method to calculate our emissions for this category. Cisco used our latest employee commuting survey completed in fiscal 2018 to estimate the emissions produced from employees commuting to work in the current reporting year. Our Scope 3 emissions in fiscal 2020 and 2021 were significantly lower than in fiscal 2019 due to our mandatory work-from-home policy during the COVID-19 pandemic. We expect our emissions for this source to increase as employees return to the workplace.

This Scope 3 category is not relevant because any upstream leased assets are included in the boundary of our Scope 1, 2, and Scope 3 Category 1 emissions.

This Scope 3 category is relevant to Cisco because our products are transported and distributed to customers, where the customers pay for the shipment of products. It is quantified based on historical Cisco shipping data to the customer, paid for by Cisco. We use a ratio with this data to estimate the proportion of outbound shipping that is not paid for by Cisco and is therefore classified under Category 9. This ratio is used to extrapolate the emissions for non-Cisco-paid outbound shipping from the emissions calculated for Cisco-paid outbound shipping. The Cisco-paid outbound shipping is accounted for in Category 4 and is calculated using a combination of activity-based and spend-based methodology.

This Scope 3 category is not relevant to Cisco because our products are in the final form when sold to the customer. They may be packaged up as a total solution with other equipment, but the product is not processed in a manner that changes the final good. Cisco’s products do not undergo any downstream processing.

Scope 3 Category 11 is relevant to Cisco because the emissions resulting from the use of the products we sell are classified as direct use-phase emissions, including emissions from the energy our products consume during use. We use product energy consumption, the number of sold products (in a fiscal year), and the expected product operating lifetime to estimate the total emissions from the use of our sold products. Because our products have varying expected operating lifetimes, we base our estimates on a presumption that they be used for five years. In actuality, depending on the product type and the specific use case, product operating lifetimes can vary greatly. For more on our previous methodology, see our Historic GHG methodology below.

This Scope 3 category is relevant to Cisco because we sold products during the reporting year. Emissions are calculated based on the product weight and assumed material composition of outbound shipped products and packaging during the fiscal year. Material-specific, historical recycling rates from internal data and from the U.S. Environmental Protection Agency are used to estimate the proportion of Cisco product and packaging materials that are recycled at their end-of-life. Material that is not recycled is assumed to be landfilled. Emissions are quantified based on the types and rates of materials recycled and landfilled in the products and packaging.

This Scope 3 category is not applicable to Cisco because any downstream leased assets are included in category 11.

This Scope 3 category is not applicable to Cisco since we do not use franchises.

This Scope 3 category was screened in fiscal 2019 and was found to be immaterial. This category will be reevaluated for potential inclusion in future years.

Completed goals

This table lists our environmental sustainability goals completed prior to the start of fiscal 2023. The table includes a link and page reference to the Purpose Report corresponding to the target or completion year.

Completed environmental
sustainability goals
Date goal established Goal topic Environment goal Final reporting fiscal year
Date goal announced:September 2018 Goal Topic:Energy/GHG Goal:Improve large rack-mounted-equipment system power efficiency—as measured from the input power from the facility to the board-mounted ASICs, memory, and other chip devices—from 77% to 87% by FY22 (FY16 base year). See Product use and efficiency for details. Final reporting fiscal year:2022 Purpose Report (p. 8)
Date goal announced:October 2018 Goal Topic:Product and packaging materials Goal:Decrease use of virgin plastic by 20% by FY25 (FY18 base year).1 Final reporting fiscal year:2021 Purpose Report (pp. 11, 85, 86)
Date goal established:September 2017 Goal topic:Energy/GHG Environment goal:
  1. Reduce total Cisco Scope 1 and 2 GHG emissions worldwide by 60% absolute by FY22 (FY07 base year).
  2. Use electricity generated from renewable sources for at least 85% of our global electricity by FY22.
 Final reporting fiscal year:2021 Purpose Report (p. 77)
Date goal established:June 2016 Goal topic:Energy/GHG Environment goal:Avoid 1 million metric tonne cumulative of GHG emissions in our supply chain from FY12 to FY20. Final reporting fiscal year:2019 CSR Report (pp. 135, 142, 150, 152, 169, and 170)
Date goal established:February 2013 Goal topic:Energy/GHG Environment goal:
  1. Reduce total Cisco Scope 1 and 2 GHG emissions worldwide by 40% absolute by FY17 (FY07 base year).
  2. Reduce total Cisco business-air-travel Scope 3 GHG emissions worldwide by 40% absolute by FY17 (FY07 base year).
  3. Reduce Cisco’s FY17 net consumption-weighted electricity emission factor to half of the latest International Energy Agency world average emission factor publicly available before the end of FY17.
  4. Reduce total Cisco operational energy use per unit of revenue worldwide by 15% by FY17 (FY07 base year).
  5. Use electricity generated from renewable sources for at least 25% of our electricity every year through FY17.
 Final reporting fiscal year:2017 CSR Report (pp. 101, 102, 106, and 108)
Date goal established:June 2008 Goal topic:Energy/GHG Environment goal:U.S. Environmental Protection Agency Climate Leaders commitment to reduce all Scope 1, Scope 2, and business-air-travel Scope 3 GHG emissions worldwide by 25% absolute by end of CY12 (CY07 base year). Final reporting fiscal year:2012 CSR Report (p. F14)
Date goal established:September 2006 Goal topic:Energy/GHG Environment goal:Clinton Global Initiative commitment to reduce GHG emissions from all Cisco business air travel worldwide by 10% absolute by FY09 (FY06 base year). Final reporting fiscal year:2009 CSR Report (p. C32)

1 The plastics included in this goal make up the majority of Cisco’s use. However, it excludes plastics contained in commodity components sourced from suppliers (such as printed circuit boards). Most of these electronic components require the electrical insulating property provided by plastics. Cisco exceeded the goal as a result of increased use of recycled plastic and COVID-19 impacts, and we continue to explore ways to further reduce virgin plastic use.

Historic GHG methodology

In fiscal 2023, we adjusted our methodology for calculating Scope 3 Category 11: Use of sold products to align with the latest version of the GHG Protocol Technical Guidance. Our previous methodology was broadly based on the GHG Protocol. It included annualized emissions from products currently in use (sold either in previous years or in the reporting year). The new methodology, by contrast, calculates emissions based only on products sold in the current year, but reflecting their emissions over their entire lifetime. For more information on how we calculate this category, refer to the Scope 3 Category 11: Use of sold products section above.

Our 2030 and 2040 SBTi targets were based on our previous methodology, and revising our methodology to align with the GHG Protocol has shifted our progress toward these targets. To see our latest progress against these targets based on our current methodology, visit the Our progress page or the Active Cisco Net Zero Targets discussion above. For the near future, we will continue to track and calculate emissions using both methodologies, and we will report the results from the older methodology in the table below. Based on this methodology, our progress against our fiscal 2030 near-term target for fiscal 2023 was 28 percent.

Historical GHG emissions using Cisco’s previous methodology
Emissions category CDP response evaluation status FY19 base year (metric tonne CO2e) FY20 (metric tonne CO2e) FY21 (metric tonne CO2e) FY22 (metric tonne CO2e) FY23 (metric tonne CO2e)
Emissions categoryCategory 11: Use of sold products CDP response evaluation statusRelevant, calculated FY19 base year (metric tonne CO2e)19,675,170 FY20 (metric tonne CO2e)18,426,615 FY21 (metric tonne CO2e)17,272,636 FY22 (metric tonne CO2e)15,307,005 FY23 (metric tonne CO2e)14,091,881