- Sustainability Strategy and Goals
- Progress vs. Target Tracker
- Key Sustainability Innovations and Technologies
- Measurable Impacts
- Challenges and Areas for Improvement
- Future Plans and Long-Term Goals
- Comparisons to Industry Competitors
- Enterprise Technology Sustainability: Cisco vs. Dell vs. HPE
- What to Watch: 12 to 18 Month Indicators
Cisco Systems, the world’s leading networking, security, and collaboration technology company with FY25 revenues of $55.8 billion and approximately 90,000 employees across 100+ countries, published its FY25 Purpose Report in January 2026, confirming that the company has met its most ambitious near-term sustainability milestones ahead of its 2040 net zero deadline. By the close of FY25 (July 26, 2025), Cisco achieved a 90% reduction in Scope 1 and 2 GHG emissions compared to its FY19 baseline, matched 100% of global annual electricity needs at all owned and leased facilities with renewable energy, and embedded Circular Design Principles across 100% of new products and packaging, all three of which were multi-year commitments originally set in 2021. Cisco’s sustainability strategy is branded as “The Plan for Possible,” structured around three pillars: clean energy transitions, circular transformation, and resilient ecosystems, and is validated by the Science Based Targets initiative under the SBTi Net-Zero Standard.
The FY25 Purpose Report also confirms that Cisco has achieved a 35% reduction in Scope 3 emissions from purchased goods and services, upstream transportation, and use of sold products, exceeding the 30% by FY2030 near-term target five years ahead of schedule. In February 2025, the Cisco Foundation rebranded its $100 million, 10-year climate investment commitment as the Regenerative Future Fund, refocusing capital on biodiversity, climate adaptation, and decarbonisation through catalytic grants and equity investments in early-stage startups.
Key Highlights
- 90% reduction in Scope 1 and 2 GHG emissions achieved in FY25 vs. FY19 baseline; target met
- 35% reduction in Scope 3 emissions (purchased goods and services, upstream logistics, use of sold products) achieved in FY25; exceeds FY30 target of 30% five years early
- 100% renewable electricity matched to global annual electricity needs at all owned and leased facilities in FY25; first time in company history
- 100% of new Cisco products and packaging incorporate Circular Design Principles as of FY25
- Net zero across full value chain target: FY2040 (SBTi validated, FY19 base year)
- Scope 3 use of sold products represents approximately 70% of total emissions; Scope 3 purchased goods and services: approximately 25%; Scope 1 and 2 operations: less than 1%
- 92% of component, manufacturing, and logistics suppliers by spend have set public, absolute GHG reduction goals as of FY23 (target: 80% by FY25)
- Cisco Foundation Regenerative Future Fund: $100 million over 10 years ($50M grants, $50M equity and debt investments in seed-to-Series A climate startups)
- Cisco Foundation Impact Report 2024: 170 million lives improved globally
- Cisco Networking Academy: 17.5 million+ learners trained across 190 countries; goal of 25 million learners over 10 years
- IRE (Intelligent RMA Engine): avoided nearly 13,397 RMAs through automated troubleshooting in FY25, reducing product returns and associated waste
- Catalyst 9000 switches: eliminated oil-based paint, saving 3,400 metric tonnes CO2e and $9 million in production costs
- Webex Room Bar: 55% recycled plastic, foam-free packaging; saves 32,000 pounds of material annually
- CDP submission: annual; SBTi validated for near-term and long-term targets; RE100 member
- Third-party limited assurance: covers Scope 1, 2, and 3 emissions, waste, and water usage; updated April 2025
Source
https://www.cisco.com/c/dam/m/en_us/about/purpose/reporting-hub/_pdf/purpose-report-2025.pdf
https://www.cisco.com/site/us/en/about/purpose/environmental-sustainability/net-zero.html
https://blogs.cisco.com/our-corporate-purpose/reintroducing-the-cisco-foundation-regenerative-future-fund-redefining-impact-in-climate-investing
Sustainability Strategy and Goals
Cisco’s sustainability strategy, titled “The Plan for Possible,” is formally aligned with the SBTi Net-Zero Standard and covers all three scopes of GHG emissions across an FY19 base year and an FY2040 net zero target year. The strategy is structured in three integrated pillars: clean energy transitions (decarbonising operations and enabling customers to do the same), circular transformation (eliminating product waste through design), and resilient ecosystems (investing in community, biodiversity, and climate adaptation through the Cisco Foundation). Cisco is a member of RE100 for renewable electricity, submits annually to the CDP, and has third-party limited assurance on Scope 1, 2, and 3 emissions, water, and waste data.
Net Zero and Carbon Emissions
Cisco’s most significant FY25 achievement is meeting its 90% Scope 1 and 2 reduction goal vs. the FY19 baseline, a target the company set in 2021 and has now confirmed as met through the FY25 Purpose Report published January 2026. The Scope 3 achievement is equally significant: a 35% reduction in the three most material Scope 3 categories (use of sold products at approximately 70% of total footprint, purchased goods and services at 25%, and upstream logistics at 4%) against an FY30 target of 30%, meaning Cisco has exceeded its near-term Scope 3 target five years early.
- Scope 1 and 2 FY24: 74% lower than FY19 baseline on absolute basis (pre-final FY25 confirmation)
- Scope 1 and 2 FY25: 90% reduction confirmed vs. FY19 baseline; near-term SBTi target met
- Scope 3 FY25: 35% reduction in purchased goods and services, upstream logistics, and use of sold products vs. FY19 baseline; FY30 target of 30% exceeded five years ahead of schedule
- Scope 3 use of sold products: approximately 70% of total company footprint
- Scope 3 purchased goods and services: approximately 25% of total footprint
- Scope 1 and 2 combined operations: less than 1% of total footprint
- Net zero target: 90% absolute reduction across all scopes by FY2040 vs. FY19; remaining emissions neutralised through credible removal projects
- RE100 member; 100% renewable electricity matched to global facility needs achieved in FY25
- 92% of component, manufacturing, and logistics suppliers by spend have public, absolute GHG reduction goals (target: 80% by FY25; target exceeded)
Water Stewardship
Cisco has committed to improving water use efficiency across its data centers and offices and reports that 92% of water withdrawn in FY23 was returned to the source without significant contamination, reflecting the low-intensity nature of Cisco’s water footprint relative to manufacturing-intensive peers. Water data is included in the scope of third-party limited assurance alongside Scope 1, 2, and 3 emissions and waste, providing independent verification of reported figures. The FY24 Purpose Report (updated April 2025 post-assurance) includes water usage figures subject to limited assurance review, confirming the governance framework for water stewardship.
- 92% of water withdrawn in FY23 returned to source without significant contamination
- Water data included in third-party limited assurance scope alongside GHG emissions and waste
- Water efficiency improvement commitment at data centers and offices; specific reduction target not publicly stated
- Supply chain water management: 2 priority findings and 2 major findings across 179 initial supplier audits in the most recent audit cycle
Regenerative Agriculture
Cisco’s most direct connection to regenerative agriculture is through the Cisco Foundation’s Regenerative Future Fund, which includes investments in regenerative agriculture startups as part of its focus on biodiversity and carbon sequestration. The Foundation explicitly targets “ventures in regenerative agriculture, carbon sequestration, and clean energy innovations” within its $50 million equity and debt investment program for seed-to-Series A climate startups. No formal regenerative agriculture goal tied to Cisco’s own operations or supply chain has been published.
- Cisco Foundation Regenerative Future Fund: explicitly targets regenerative agriculture ventures within its $50M equity and debt investment program
- Amazon Sacred Headwaters Alliance (ASHA): Cisco Foundation investment protecting 86 million acres of Amazon rainforest through Indigenous-led conservation
- No formal regenerative agriculture target for Cisco’s own supply chain as of March 2026
Deforestation and Biodiversity
The Cisco Foundation’s investment in the Amazon Sacred Headwaters Alliance has helped protect 86 million acres of Amazon rainforest, representing one of the largest Indigenous-led forest conservation programs funded by a corporate foundation globally. The Regenerative Future Fund, launched February 2025, explicitly includes biodiversity as a priority investment theme, filling a gap in the original $100 million climate commitment that focused primarily on net zero and circular economy solutions.
- Amazon Sacred Headwaters Alliance: 86 million acres of Amazon rainforest protected through Cisco Foundation investment and Indigenous-led conservation
- Cisco Foundation Regenerative Future Fund (February 2025): biodiversity added as an explicit investment theme alongside climate adaptation and decarbonisation
- No formal corporate-level deforestation policy or biodiversity baseline for Cisco’s own operations or supply chain published as of March 2026
Packaging and Circular Economy
Cisco’s circular economy program is one of the most comprehensive in the enterprise technology sector, covering product design, supplier standards, take-back, refurbishment, and remanufacturing across its entire portfolio. As of FY25, 100% of new Cisco products and packaging incorporate the company’s 25 Circular Design Principles, covering modularity, repairability, use of recycled content, and end-of-life recyclability, a milestone that represents the culmination of a multi-year design transition across switches, routers, servers, and collaboration devices. Cisco’s IRE (Intelligent RMA Engine) avoided nearly 13,397 return merchandise authorisations in FY25 through automated troubleshooting, directly reducing product waste and carbon from unnecessary shipping and manufacturing.
- 100% of new Cisco products and packaging incorporate 25 Circular Design Principles as of FY25
- Catalyst 9000 switches: eliminated oil-based paint in manufacturing; 3,400 metric tonnes CO2e saved; $9 million production cost reduction
- Webex Room Bar: 55% recycled plastic; foam-free packaging; 32,000 pounds of material eliminated annually
- IRE: avoided 13,397 RMAs through automated troubleshooting in FY25, reducing e-waste and logistics emissions
- Cisco Takeback and Reuse Program and Cisco Refresh: extend product lifecycle through remanufacturing, reuse, and recycling
- FY24 product recycling rate: 90%; product reuse rate: 10% (per Cisco Live FY24 data)
- Target: 70% of component and manufacturing suppliers by spend to achieve zero waste diversion at one or more sites by FY25
- Cisco Green Pay: circular IT equipment financing programme in partnership with DLL Group, extending hardware lifecycles via reuse and remanufacturing
Human Rights and Responsible Sourcing
Cisco conducts supplier audits across manufacturing, component, logistics, and sub-tier suppliers, with 179 initial audits conducted in the most recent cycle, covering air emissions, water management, energy and GHG, labour practices, and health and safety. The company achieved its supply chain GHG target early: 92% of component, manufacturing, and logistics suppliers by spend had set public, absolute GHG reduction goals as of FY23, against a target of 80% by FY25. No systemic priority findings on labour rights were identified across the 179 audited sites in the most recent published audit cycle.
- 179 initial supplier audits conducted across manufacturing, components, logistics, and sub-tier suppliers
- 92% of component, manufacturing, and logistics suppliers by spend have public absolute GHG targets (FY23); FY25 target of 80% exceeded
- Supplier audit findings: 5 priority air emission findings; 2 priority water management findings; 18 energy and GHG findings across 179 sites
- Modern Slavery Policy and Supplier Code of Conduct published and enforced across all supply chain tiers
Community and Social Impact
Cisco Networking Academy is the company’s most impactful community initiative, having trained 17.5 million+ learners across 190 countries since its founding in 1997, with a target of reaching 25 million learners in digital and cybersecurity skills over 10 years from 2022. The Cisco Foundation’s 2024 Impact Report confirms that 170 million lives have been improved globally through Foundation investments in SDGs and digital education, including the Jaza Energy solar-powered battery system that provides affordable electricity to over 100,000 people per month across Tanzania and Nigeria.
- Cisco Networking Academy: 17.5 million+ learners trained across 190 countries; 25 million learner target over 10 years from 2022
- 95% of Networking Academy students attribute obtaining a job or education opportunity to the programme
- Cisco Foundation 2024 Impact Report: 170 million lives improved globally
- Jaza Energy (Tanzania and Nigeria): solar-powered battery systems providing affordable electricity to 100,000+ people per month; Cisco Foundation early-stage investment; successful exit confirmed
- SteamaCo and Shyft Power Solutions merger: decentralised renewable energy for Africa and South Asia; backed by Cisco Foundation
- Cisco Foundation Regenerative Future Fund: $100 million total ($50M grants, $50M equity and debt investments in seed-to-Series A climate startups); launched February 2025
- Inclusive clean energy: portfolio companies active across African villages, urban centres, and South Asian communities
Governance and Transparency
Cisco’s sustainability governance is among the most comprehensive in the enterprise technology sector: the company publishes an annual Purpose Report, submits to the CDP, follows GRI and SASB reporting frameworks, and has third-party limited assurance on Scope 1, 2, and 3 emissions, water, and waste data. The FY24 Purpose Report was updated in April 2025 to reflect post-assurance corrections, demonstrating active governance discipline rather than one-time publication. The Chief Sustainability Officer (Mary de Wysocki) reports directly to senior leadership, with sustainability embedded as a board-level governance matter.
Technology and Innovation
Cisco’s sustainability technology innovations span product design, network infrastructure, and grid modernisation. The 25 Circular Design Principles embedded across 100% of new products cover modularity, repairability, recycled content, and end-of-life recyclability, supported by tools including the IRE automated troubleshooting engine that eliminated 13,397 unnecessary product returns in FY25. Cisco is actively developing AI-enabled network and grid solutions that reduce the energy intensity of AI workloads themselves, positioning its technology portfolio as infrastructure for both the digital transition and the energy transition simultaneously.
- 25 Circular Design Principles: fully embedded in 100% of new products and packaging in FY25
- IRE: avoided 13,397 RMAs in FY25; extends product lifecycle and reduces e-waste
- Catalyst 9000: oil-free paint eliminated; 3,400 tCO2e saved; $9M cost reduction
- Webex Room Bar: 55% recycled plastic; foam-free; 32,000 lbs material saved annually
- Cisco Green Pay: circular IT financing enabling remanufacturing and extended device lifecycles
- AI and network efficiency: product-level energy efficiency improvements generation over generation as a core strategic priority for FY26 and beyond
- Grid modernisation solutions: secure networking infrastructure designed to support AI-driven grid optimisation and renewable integration
Global Partnerships and Advocacy
Cisco is a member of RE100 for renewable electricity, an SBTi signatory, and a CDP respondent, placing it among a relatively small group of enterprise technology companies with validated net-zero commitments across all three target tiers. The Cisco Foundation Regenerative Future Fund engages a global portfolio of climate startups spanning Africa, South Asia, Latin America, and the United States, with the fund explicitly designed to address funding gaps in climate adaptation and biodiversity that philanthropy alone cannot fill.
Source
https://www.cisco.com/c/dam/m/en_us/about/purpose/reporting-hub/_pdf/purpose-report-2025.pdf
https://www.cisco.com/site/us/en/about/purpose/environmental-sustainability/net-zero.html
https://www.cisco.com/c/m/en_us/about/purpose/reporting-hub.html
https://blogs.cisco.com/our-corporate-purpose/reintroducing-the-cisco-foundation-regenerative-future-fund-redefining-impact-in-climate-investing
Progress vs. Target Tracker
Source
https://www.cisco.com/c/dam/m/en_us/about/purpose/reporting-hub/_pdf/purpose-report-2025.pdf
https://net0tracker.com/corporates.html/Cisco%20Systems/
https://www.cisco.com/site/us/en/about/purpose/environmental-sustainability/net-zero.html
Key Sustainability Innovations and Technologies
Cisco’s most consequential sustainability innovation for the global technology sector is the commercial-scale proof of circular product design at enterprise hardware scale. The completion of the 25 Circular Design Principles across 100% of new products and packaging in FY25, covering switches, routers, servers, and collaboration devices, demonstrates that circular design is not limited to consumer electronics but is achievable across the full breadth of enterprise networking infrastructure. The Catalyst 9000 programme, which eliminated oil-based paint from manufacturing and generated 3,400 metric tonnes of CO2e savings and $9 million in production cost reductions, is the clearest proof that circular design delivers simultaneous environmental and financial returns at scale.
The IRE (Intelligent RMA Engine) represents the most operationally sophisticated sustainability tool in Cisco’s portfolio, automating troubleshooting workflows to resolve common product issues in the field without requiring physical return and replacement. By avoiding 13,397 returns in FY25 alone, IRE directly reduces product waste, reduces logistics emissions, and extends hardware lifecycle at a scale that no separate take-back or recycling programme could replicate.
- 25 Circular Design Principles: 100% of new products and packaging covered in FY25; applicable across switches, routers, servers, and collaboration tools
- Catalyst 9000: oil-based paint eliminated; 3,400 tCO2e saved; $9M production cost reduction
- Webex Room Bar: 55% recycled plastic; foam-free packaging; 32,000 lbs material saved annually
- IRE: 13,397 RMAs avoided in FY25 through automated troubleshooting; reduces e-waste and logistics emissions
- Cisco Takeback and Reuse Program: FY24 product recycling rate 90%; reuse rate 10%
- Cisco Green Pay: circular IT equipment financing with DLL Group; remanufacturing and lifecycle extension for enterprise hardware
- AI-driven network energy efficiency: product-level energy intensity improvements generation over generation; Cisco products designed to reduce data centre power consumption per workload
- Jaza Energy exit (Foundation portfolio): solar-powered battery systems for off-grid communities; successful exit amplifying original mission
- Reverion and SteamaCo-Shyft mergers: decentralised clean energy infrastructure for Africa and South Asia backed by Regenerative Future Fund
Source
https://www.cisco.com/c/dam/m/en_us/about/purpose/reporting-hub/_pdf/purpose-report-2025.pdf
https://www.cisco.com/c/dam/en_us/about/csr/environmental-sustainability/circular-design-white-paper-2024.pdf
https://www.cisco.com/c/m/en_us/about/purpose/reporting-hub/energy-and-sustainability/circular-transformation.html
Measurable Impacts
Cisco’s FY25 Purpose Report marks the most measurable sustainability performance year in the company’s history, with three major multi-year milestones simultaneously achieved: 90% Scope 1 and 2 reduction, 100% renewable electricity, and 100% circular design product coverage. The 35% Scope 3 reduction achieved in FY25 against a FY30 target of 30% means that Cisco has delivered its most material emissions reduction commitment five years ahead of schedule, a performance that places it among a very small group of enterprise technology companies globally to have exceeded SBTi Scope 3 interim targets.
The supply chain programme has also delivered ahead of schedule. At 92% of suppliers by spend with public absolute GHG targets, Cisco has exceeded the 80% by FY25 target by 12 percentage points, and done so two years early at the FY23 reporting date. The Cisco Foundation’s 2024 Impact Report, confirming 170 million lives improved globally, positions the Foundation’s climate and digital inclusion programmes as among the most scaled corporate philanthropic portfolios in the technology sector.
- Scope 1 and 2 GHG reduction FY25: 90% vs. FY19 baseline; FY24 interim: 74% vs. FY19
- Scope 3 reduction FY25: 35% across purchased goods and services, upstream logistics, and use of sold products vs. FY19 baseline
- Renewable electricity: 100% match to global annual electricity needs at all owned and leased facilities in FY25
- Circular design coverage: 100% of new products and packaging in FY25 (FY24: 96% per available data)
- Supplier GHG target adoption: 92% of component, manufacturing, and logistics suppliers by spend (FY23); target of 80% by FY25 exceeded
- Product recycling rate FY24: 90%; product reuse rate: 10%
- IRE RMAs avoided in FY25: 13,397
- Cisco Foundation: 170 million lives improved globally through FY24
- Networking Academy: 17.5 million+ learners across 190 countries
Source
https://www.cisco.com/c/dam/m/en_us/about/purpose/reporting-hub/_pdf/purpose-report-2025.pdf
https://sustainabilitymag.com/news/energy-circularity-responsible-ai-ciscos-purpose-report
https://energydigital.com/news/behind-ciscos-energy-efficiency-circularity-strategies
Challenges and Areas for Improvement
Cisco’s most significant ongoing sustainability challenge is the dominance of Scope 3 Category 11 (use of sold products) in its total emissions footprint, which at approximately 70% of total company GHG impact is structurally determined by the energy intensity of Cisco devices during customer use across global networks and data centres. While the 35% Scope 3 reduction achieved in FY25 is a genuine milestone, the absolute emissions from use of sold products remain the single largest contributor to Cisco’s climate impact and are driven by customer electricity consumption behaviour, AI workload growth, and the pace of global grid decarbonisation, all factors largely outside Cisco’s direct control.
The second challenge is the validation of the FY25 supplier zero waste diversion target. Cisco committed that 70% of component and manufacturing suppliers by spend would achieve a zero waste diversion rate at one or more sites by FY25, but no confirmation of whether this target was met appears in available FY25 sources. Given that 18 energy and GHG findings and 4 water management findings were identified across 179 supplier audits in the most recent cycle, the supply chain’s environmental management maturity remains variable.
- Scope 3 Category 11 (use of sold products): approximately 70% of total footprint; driven by customer electricity consumption during product use; limited direct control
- AI-driven data centre demand growth: rising workload intensity increases per-device energy consumption, directly threatening Scope 3 Category 11 progress
- FY25 supplier zero waste diversion target (70% of suppliers at one or more sites): status unconfirmed in available FY25 sources
- 18 energy and GHG findings across 179 supplier audits in most recent cycle; variable supply chain environmental management maturity
- No absolute Scope 1 and 2 figure published for FY25 (only % reduction confirmed); exact tonnage not available in currently accessible sources
- Water reduction target: no specific percentage or volume target publicly stated despite water stewardship commitment
- Post-FY25 near-term targets: with all FY25 near-term milestones met, no updated near-term interim targets between FY25 and FY40 net zero year have been formally announced as of March 2026
Source
https://www.cisco.com/c/dam/m/en_us/about/purpose/reporting-hub/_pdf/purpose-report-2025.pdf
https://net0tracker.com/corporates.html/Cisco%20Systems/
https://www.cisco.com/c/dam/m/en_us/about/purpose/reporting-hub/governance/data-and-assurance.html
Future Plans and Long-Term Goals
With all FY25 near-term milestones met, Cisco’s forward sustainability roadmap now centres on maintaining the 90% Scope 1 and 2 reduction level through FY2040, driving further Scope 3 reductions beyond the already-exceeded 30% near-term target, and scaling product-level energy efficiency to address the energy intensity implications of AI-driven network and data centre growth. The FY25 Purpose Report frames AI energy demand not as a sustainability threat but as an engineering challenge for which Cisco’s networking expertise is uniquely positioned, with three forward priorities: improving product-level energy efficiency generation over generation, using Cisco technology to modernise the electric grid, and expanding access to clean energy globally.
The Cisco Foundation Regenerative Future Fund’s relaunch in February 2025 signals a strategic shift from net-zero-focused climate investment toward a more comprehensive biodiversity and climate adaptation mandate, acknowledging that emissions reductions alone are insufficient for planetary resilience. The 25 million learner target for Networking Academy represents the company’s most far-reaching social sustainability commitment, with 17.5 million learners already reached and approximately 7.5 million remaining over the balance of the 10-year programme.
- Net zero across all scopes by FY2040 (90% reduction + credible removal projects for residual emissions)
- Post-FY25 Scope 3 reduction pathway: continued improvement beyond 35% achieved; specific FY30 interim targets to be updated
- AI energy efficiency: product-level energy intensity improvement generation over generation as a core engineering priority
- Grid modernisation: Cisco networking infrastructure positioned as critical for AI-driven grid optimisation and clean energy integration
- Cisco Foundation Regenerative Future Fund: $50M grants and $50M equity and debt investments; biodiversity and climate adaptation added as priority themes
- Networking Academy: 25 million learners target by 2032; 17.5 million reached to date
- Circular design: 100% coverage achieved; next phase focuses on scaling product take-back, reuse, and remanufacturing at global commercial scale
- Cisco Green Pay expansion: scaling circular IT financing globally to extend enterprise hardware lifecycles beyond initial deployment
Source
https://www.cisco.com/site/us/en/about/purpose/environmental-sustainability/net-zero.html
https://www.cisco.com/c/dam/m/en_us/about/purpose/reporting-hub/_pdf/purpose-report-2025.pdf
https://blogs.cisco.com/our-corporate-purpose/reintroducing-the-cisco-foundation-regenerative-future-fund-redefining-impact-in-climate-investing
Comparisons to Industry Competitors
Cisco leads its primary enterprise technology hardware competitors, Dell Technologies and HPE, on the pace of Scope 1 and 2 decarbonisation and on circular design programme maturity, while Dell leads on certain Scope 3 category-level targets and HPE leads on renewable energy transition trajectory relative to its baseline year. Dell reported a 40.6% Scope 1 and 2 reduction in FY24 against a 2030 target of 50%, with 61.5% renewable electricity (target: 75% by 2030) and a 22.9% Scope 3 use-of-products reduction against a 30% by 2030 target. HPE committed to 70% Scope 1 and 2 reduction by 2030, reported a 21% reduction vs. a 2020 base year in FY22, and sourced 52% renewable energy in FY22, three years ahead of its 2025 target.
Enterprise Technology Sustainability: Cisco vs. Dell vs. HPE
Source
Dell FY24 ESG: https://www.delltechnologies.com/asset/en-gb/solutions/business-solutions/briefs-summaries/delltechnologies-fy24-esg-report.pdf
HPE ESG: https://www.sdxcentral.com/news/big-tech-esg-scorecard-rating-cisco-dell-hpe-ibm-and-vmware-on-sustainability/
Cisco net zero: https://www.cisco.com/site/us/en/about/purpose/environmental-sustainability/net-zero.html
What to Watch: 12 to 18 Month Indicators
First indicator: Whether Cisco publishes updated near-term Scope 3 reduction targets for FY26 to FY40, filling the gap created by the early achievement of the FY30 35% Scope 3 target. With the FY30 Scope 3 target exceeded five years early, Cisco has no binding published Scope 3 interim milestone between FY25 and the FY40 net zero deadline. Given that use of sold products at approximately 70% of total footprint is the dominant emissions source and is structurally linked to AI-driven data centre energy demand growth, the absence of a more ambitious updated Scope 3 reduction pathway would signal that Cisco considers its Scope 3 programme largely complete rather than an ongoing engineering discipline. Any announcement of updated Scope 3 reduction targets covering FY30, FY35, and FY40 milestones would represent a meaningful governance signal that Cisco intends to maintain the pace of decarbonisation established in the FY19 to FY25 period.
Second indicator: Whether Cisco confirms achievement of the FY25 supplier zero waste diversion target, requiring 70% of component and manufacturing suppliers by spend to achieve zero waste diversion at one or more sites. Given that 18 energy and GHG findings and 4 water management findings appeared across only 179 initial supplier audits in the most recent cycle, the zero waste diversion readiness of suppliers at the scale required for 70% spend coverage is uncertain. Confirmation of this target in the FY25 Purpose Report data annex or a published supplier audit report would validate Cisco’s circular supply chain ambitions beyond Cisco’s own facilities. A shortfall would indicate that circular design at the product level is not yet matched by circular operations at the supply chain level.
Third indicator: Whether Cisco’s AI-driven product energy efficiency programme demonstrates measurable generation-over-generation energy intensity improvements in the FY26 product portfolio documentation. As AI workloads increase data centre power density globally, the energy consumed by Cisco switches, routers, and servers per unit of data throughput becomes the most commercially and environmentally critical performance metric in the company’s sustainability programme. Any quantified improvement in network energy efficiency per workload or per rack unit in FY26 product specifications would confirm that Cisco’s sustainability engineering is keeping pace with the energy intensity demands of the AI era, rather than being outpaced by it.
Source
https://www.cisco.com/c/dam/m/en_us/about/purpose/reporting-hub/_pdf/purpose-report-2025.pdf
https://net0tracker.com/corporates.html/Cisco%20Systems/
https://sustainabilitymag.com/news/energy-circularity-responsible-ai-ciscos-purpose-report
Cisco’s FY25 sustainability report marks the most complete near-term target fulfilment of any enterprise technology company reviewed in this series: it has simultaneously met its 90% Scope 1 and 2 reduction goal, achieved 100% renewable electricity matching, completed its 100% circular design product coverage target, exceeded its Scope 3 near-term target five years early, and advanced its supply chain GHG adoption target beyond the required threshold. No comparable enterprise hardware company has achieved this breadth of simultaneous near-term target completion. The structural challenge going forward is that Cisco’s most material emissions category, the energy consumed by customers using Cisco devices globally, is growing rather than shrinking as AI adoption accelerates, and the company’s current Scope 3 pathway has no published interim milestone beyond the FY40 net zero date.
For CSOs and ESG practitioners benchmarking against Cisco or designing hardware-company sustainability programmes, three strategic takeaways apply.
First, Cisco’s circular design programme proves that the circular economy transition is not a packaging or consumer goods phenomenon but a viable engineering discipline for enterprise networking hardware. The 25 Circular Design Principles, the Catalyst 9000 oil-free paint elimination that saved 3,400 tCO2e and $9 million simultaneously, and the IRE engine avoiding 13,397 product returns in a single year are all proof that circular design delivers measurable cost reductions alongside environmental outcomes. Hardware company CSOs should study Cisco’s model as evidence that circular engineering pays for itself at scale.
Second, the structure of Cisco’s supply chain GHG programme, requiring 80% of suppliers by spend to set public absolute GHG targets, and achieving 92% ahead of schedule, is the most effective supplier decarbonisation mechanism in the enterprise technology sector because it uses procurement leverage to cascade SBTi-aligned accountability into the supply chain. Practitioners designing supply chain sustainability programmes should adopt spend-weighted supplier coverage targets rather than headcount-based supplier targets, as spend weighting ensures that the highest-emitting suppliers are prioritised.
Third, the Cisco Foundation’s Regenerative Future Fund model, splitting a $100 million commitment equally between nonprofit grants and equity and debt investments in seed-to-Series A climate startups, is a more capital-efficient climate philanthropy structure than pure grant-making. The equity and debt investments generate financial returns that can be recycled into future climate investments, while grants fund the community activation and biodiversity protection work that markets cannot fund. Practitioners advising corporate foundations on climate philanthropy structure should evaluate this dual-track model as a means of extending the effective lifetime and impact of a fixed philanthropic endowment.
Source
https://www.cisco.com/c/dam/m/en_us/about/purpose/reporting-hub/_pdf/purpose-report-2025.pdf
https://www.cisco.com/site/us/en/about/purpose/environmental-sustainability/net-zero.html
https://blogs.cisco.com/our-corporate-purpose/reintroducing-the-cisco-foundation-regenerative-future-fund-redefining-impact-in-climate-investing
