Intro Power Inclusive Future For All FY23 Purpose Report | 11 Looking Ahead The power and possibility in addressing the climate crisis Climate change is here, and its impacts are painfully evident: the last decade was the hottest on record, storms have grown increasingly powerful, and catastrophic 昀椀res are regular occurrences. We’re at a pivotal moment, but with bold, strategic, and collective action, we can help Crucial work to address the climate crisis is already underway in the private sector, mitigate the worst outcomes of climate change, ensuring the opportunity to build an and this momentum creates an incredible and transformative opportunity. But those inclusive future for all. of us in the private sector can do more to help accelerate access to a昀昀ordable All sectors have a responsibility to address the climate crisis, including the private sector. renewable energy. If more businesses move away from approaching environmental We must begin by taking a strategic approach to decarbonizing our own operations goals as a checklist, we can also create new opportunities for our companies and our and value chains, and promoting science-based plans, goals, and commitments. This communities to succeed. The private sector must come together to share our learnings 昀椀scal year, Cisco announced our new environmental sustainability strategy, The Plan for and develop best practices in order to build an ecosystem of partnership to scale our Possible, focused on accelerating our transition to clean energy, circular transformation, impact. We can help catalyze transformation when we work to align our e昀昀orts. and investing in resilient ecosystems. We must also take a new approach to our investments. With a more strategic Building a net-zero world will also require all communities to access more renewable approach, the private sector can help build climate and economic resiliency, drive energy. Innovative technologies have lowered the cost of generating wind, solar, a digital and sustainable transformation, and set up vulnerable countries and hydro, and geothermal energy, making them more abundant and available than communities for success in the future. And this shift can help create economic ever. But connecting renewables to our existing power grids is a challenge. Digital opportunities. According to the International Renewable Energy Agency (IRENA), infrastructure is needed to make grids “smarter,” better able to monitor and balance worldwide employment in renewable energy could reach more than 38 million in energy demands and quickly connect to renewable sources. With digital grids, we 2030. Through our CDA Program, Cisco takes a bold approach to co-investment and can reduce black- and brown-outs while accelerating the clean energy transition. co-innovation. One example of this work is our partnership with Enel Group, Italy’s largest electricity provider. Together, we’re accelerating the transition to a low-carbon electrical grid across Italy. The work is underway, and it has the capacity to scale. Updating and digitalizing global grids will require signi昀椀cant investments. According to BloombergNEF research, the cost to make necessary grid upgrades to support a global Through an expansion of our partnership with Mercy Corps, we’re also focused on net-zero trajectory will be approximately US$21 trillion by 2050. Government initiatives new ways to foster climate adaptation and resilience in the Horn of Africa, and the link like the European Green Deal and the United States’ National Climate Resilience between climate change and humanitarian crises. Framework are driving focus, funding, and action toward net-zero goals. But globally, There is power and possibility in the private sector working in new ways to address the many communities are not seeing equitable levels of investment and momentum. global climate crisis. If we can rise to the occasion and meet the moment, we’ll do good for our businesses and good for the world.