Cisco is a multinational technology company based in San Jose, California, that specializes in designing, manufacturing, and selling networking equipment, software, and services. Founded in 1984, Cisco has grown to become one of the largest technology companies in the world, with a global workforce of over 75,000 employees and a market capitalization of over $200 billion.
As a company that operates in the Data Networking Equipment sector, Cisco is well aware of the impact that its operations have on the environment. In recent years, the company has made a concerted effort to reduce its carbon footprint and promote decarbonisation across its operations.
One of the key ways in which Cisco is working to reduce its carbon footprint is through its corporate energy program. This program focuses on increasing the efficiency of the company's data centers, buildings, and other facilities, as well as promoting the use of renewable energy sources. Cisco has set a goal of sourcing 85% of its electricity from renewable sources by 2022, and has already made significant progress towards this target.
One of the ways in which Cisco is achieving this goal is through the use of corporate power purchase agreements (PPAs). A corporate PPA is a long-term contract between a company and a renewable energy provider, in which the company agrees to purchase a certain amount of renewable energy at a fixed price. By entering into these agreements, companies like Cisco can provide a stable revenue stream for renewable energy providers, while also reducing their own carbon footprint.
In 2018, Cisco signed a 20-year PPA with a wind farm in Texas, which will provide the company with 200 MW of renewable energy. This agreement is expected to reduce Cisco's greenhouse gas emissions by 25%, and will help the company to achieve its goal of sourcing 85% of its electricity from renewable sources.
In addition to its corporate PPA program, Cisco is also investing in renewable energy projects directly. In 2019, the company announced that it had invested in a solar project in North Carolina, which will generate 20 MW of renewable energy. This project is part of Cisco's commitment to invest $10 million in renewable energy projects over the next three years.
Cisco's commitment to decarbonisation and renewable energy is not just limited to its own operations. The company is also working to promote sustainability across its supply chain, by encouraging its suppliers to adopt more sustainable practices. In 2019, Cisco launched a supplier sustainability program, which aims to help its suppliers reduce their carbon footprint and improve their environmental performance.
Through this program, Cisco is working with its suppliers to set sustainability targets, measure their progress, and share best practices. The company is also encouraging its suppliers to adopt renewable energy sources and to reduce their use of fossil fuels.
Overall, Cisco's commitment to decarbonisation and renewable energy is a key part of its corporate strategy. By reducing its own carbon footprint and promoting sustainability across its supply chain, the company is demonstrating its commitment to environmental stewardship and helping to build a more sustainable future.