2015 CSR Report - cisco.com

1 2015 corporate social responsibility Report What is good for the world and good for business are more closely connected than ever before. Chuck RobbinsCEOINTRODUCTIONA4 Message from CEOA5 CSR & Our BusinessA7 About This ReportGRI INDEXG2 General Standard DisclosuresG6 EconomicG7 EnvironmentalG10 SocialGOVERNANCE & ETHICSB1 Our PrioritiesB10 The DetailsB11 Governance and Sustainability ManagementB13 EthicsB14 Data Security and PrivacyB16 Human RightsOUR PEOPLEC1 Our PrioritiesC12 The DetailsC13 Our People DealC15 Inclusion, Diversity, and CollaborationC21 Developing Our PeopleC23 Rewarding Our PeopleC24 A Safe and Healthy WorkplaceSOCIETYD1 Our PrioritiesD13 The DetailsD14 Employee VolunteeringD15 EducationD18 Economic EmpowermentD21 HealthcareD22 Critical Human Needs and Disaster ReliefD23 Supplier DiversityENVIRONMENTE1 Our PrioritiesE11 The DetailsE12 Environmental SustainabilityE18 MaterialsE21 Energy and GHG EmissionsE38 Water UseE40 Biodiversity and Land UseE41 Non-GHG EmissionsE41 Effluents (Liquid)

2 E42 WasteE48 AppendixSUPPLY CHAINF1 Our PrioritiesF11 The DetailsF12 Our Supply ChainF13 Embedding Sustainability in Core Business PracticesF15 Promoting TransparencyF16 Working with Suppliers to Build CapacityContentsHow to Use This ReportCisco s 2015 CSR Report is based on the Global Reporting Initiative G4 Guidelines. Each topic shown to the right has two sections: Our Priorities: Highlights cisco s strategy and key CSR issues The Details: Provides more information requested by our stakeholdersBookmarksThis PDF is SoftwareAdobe Acrobat Version and above. Further information on cisco s CSR activities are available online at 2015 cisco CSR ReportFeedbackWebsiteTOCI ntroductionCisco has pioneered the development of networking technologies for more than 30 years. We design and sell a broad range of routing, switching, and other networking-based technologies.

3 Increasingly, we deliver our technology and services to our customers as integrated solutions including cloud, video, mobility, security, collaboration, and analytics. 2015 cisco CSR ReportA1 FeedbackWebsiteGOVERNANCE & ETHICSSOCIETYENVIRONMENTSUPPLY CHAINGRI INDEXOUR PEOPLEINTRODUCTIONM essage from CEOCSR & Our BusinessAbout This ReportP1 IntroductionOur products and solutions connect people, processes, data, and things in meaningful ways and are the foundation of the next wave of the Internet the Internet of Everything (IoE). IoE enables countries, cities, industries, and businesses to develop new models, deliver better customer experiences, and create new revenue streams and operating models to drive efficiency and value. Together with our ecosystem of partners and developers, these new capabilities are creating unprecedented opportunities for our customers creating jobs, making cities smarter, and enhancing healthcare and education systems changing the way the world works, lives, plays, and learns.

4 2015 cisco CSR ReportA2 FeedbackWebsiteGOVERNANCE & ETHICSSOCIETYENVIRONMENTSUPPLY CHAINGRI INDEXOUR PEOPLEINTRODUCTIONM essage from CEOCSR & Our BusinessAbout This ReportUS$ billion net sales in F Y15$ ,000 engineers focused on innovative research and development25,000US$ billion ( of our FY15 revenue) invested in R&D$ $286 million in cash and in-kind contributions to community programs by cisco and the cisco Foundation$286 MMore than 71,500 employees71,50 02015 Highlights16 5 Operations in more than 165 countries700700 suppliers around the world 2015 cisco CSR ReportA3 FeedbackWebsiteGOVERNANCE & ETHICSSOCIETYENVIRONMENTSUPPLY CHAINGRI INDEXOUR PEOPLEINTRODUCTIONM essage from CEOCSR & Our BusinessAbout This ReportChuck RobbinsA message fromIn today s world, technology is enabling us to create incredible value at a pace faster than we have ever seen.

5 As we connect people, machines, and devices around the world, we create enormous opportunity while changing lives. I am proud to introduce cisco s corporate social responsibility (CSR) Report , which shows in so many ways how our focus on combining human and technological innovation is helping people and our an example, over the last 18 years, our cisco Networking Academy program has helped more than million students at 9500 learning institutions in 170 countries develop the skills to thrive in the digital economy. Our four-year investment in the Jordan Healthcare Initiative has benefited 150,000 patients through a series of projects that use collaboration and communication technologies to transform how healthcare is delivered. In FY15, we also made solid progress on our environmental goals. We increased energy efficiency and renewable energy through our EnergyOps Program, and we broadened the scope of our goals to include our supply chain.

6 None of this would be possible without the dedication of our amazing people, who make all of this happen. We ve challenged and empowered all of our employees to connect everything, innovate everywhere, and benefit everyone, and we are investing in the tools, skills, and resources to support them in that effort. cisco s new Executive Leadership Team is also more diverse in gender, ethnicity, age, and work experience than ever before, and one of the most diverse in the industry. I truly believe that what is good for the world and good for business are more closely connected than ever before. As more and more people and things come online and become connected, we have more opportunity than ever to change the world. Our leadership role as a corporate citizen and steward is core to all that we do, and will be a key driver of our long-term success.

7 I look forward to continuing this important work in the years ahead. Chuck Robbins CEO 2015 cisco CSR ReportA4 FeedbackWebsiteGOVERNANCE & ETHICSSOCIETYENVIRONMENTSUPPLY CHAINGRI INDEXOUR PEOPLEINTRODUCTIONCSR & Our BusinessAbout This ReportMessage from CEOP1 Message from CEOCSR & Our Business: A message from Ta e Yo oIn our digitized world, astonishing opportunities emerge when people connect. By 2020, there is the potential to connect 50 billion people, processes, data, and things through the Internet. When you consider the magnitude of that number, you can see how powerful digitization can be as we work to solve some of the world s most pressing vision is to empower people and societies to thrive in this new digitized economy to create exponential social , environmental, and business impact. As our CEO Chuck Robbins noted in his message, CSR is core to cisco s long-term success.

8 Our strategy focuses on 4 primary areas:1. Help advance positive social change through technology-based solutions and multi-stakeholder partnerships that support access to critical human needs, education, healthcare, and economic Address the challenges around the growing Information and Communications Technology (ICT) skills gap and global unemployment especially youth unemployment by empowering a new generation of global problem solvers who innovate like technologists, think like entrepreneurs, and become social change agents . 3. Ensure that economic growth does not come at the expense of the environment by addressing energy consumption from our operations, supply chain, and products, while helping our customers address their own environmental sustainability challenges. 4. Invest in the future to create conditions for sustainable economic growth, earn the ongoing trust of our stakeholders, and promote ethical conduct and human rights in everything we am delighted that each section of the CSR Report this year is introduced by executive leaders from the responsible business functions, reflecting alignment of CSR strategy with core business strategy.

9 We will continue to drive this integration and further sharpen our focus on the most material CSR issues with our new Executive Leadership Team. In 2015, cisco was honored to be named to Fortune magazine s first-eve Change the World list, which recognizes companies that have made significant progress in addressing major social problems as a part of their core business strategy. This CSR Report shares some of the stories about how technology has benefitted the end, the digitization era is bigger than cisco or any company, for that matter. It will require unprecedented cooperation between many companies, organizations, and governments. Together, I am hopeful we can make a difference in people s lives, communities, and the planet. Tae Yoo Senior Vice President, corporate Affairs 2015 cisco CSR ReportA5 FeedbackWebsiteGOVERNANCE & ETHICSSOCIETYENVIRONMENTSUPPLY CHAINGRI INDEXOUR PEOPLEINTRODUCTIONM essage from CEOA bout This ReportCSR & Our BusinessP1 Intro.

10 Sustainability & Our BusinessGOVERNANCESOCIETY ENVIRONMENTSUPPLY CHAINOUR PEOPLEData Security & PrivacyTalentIT Enabling E ectEconomic EmpowermentInclusion, Diversity, & CollaborationSupplier DiversityDigital Inclusion Geographic AccessEthical ConductProduct Energy E ciencySupply Chain Labor StandardsEnergy Consumption (Operations)Ethical SourcingSocial Application of ICTD igital RightsLocal Community ImpactsTransport Emissions (Logistics)Employee Health, Safety & WellnessHazardous Materials in ProductsWater UseOperational WasteDigital Inclusion User AccessibilityLiquid E uents (Water Pollution)Biodiversity & Land UseNon-GHG Airborne EmissionConcern to StakeholdersHIGHLOWI mportance to cisco s Business SuccessHIGHLOWW aste Product End of LifeSustainable Material SourcingWaste Product PackagingSupplier Energy ManagementCSR Materiality Our PrioritiesIn FY15, we refreshed our CSR materiality assessment, bringing our teams across the business together to evaluate the key CSR issues identified with input from external stakeholders in FY14.