Intro Power Inclusive Future For All FY23 Purpose Report | 35 Looking Ahead Clean energy transitions GHG emissions reduction goals Cisco has an opportunity to speed the transition to Net-zero goal low-carbon energy within our own business and among our suppliers, customers, communities, and By 2040: Reach net-zero GHG emissions across our value other stakeholders. chain by reducing absolute Scope 1, 2, and 3 emissions 1 Our focus on GHG emissions reduction is captured in our goal to by 90% (FY19 base year). reach net zero across our value chain (Scopes 1, 2, and 3) by 2040. We are reporting progress through the near-term This goal has been approved by the Science Based Targets initiative targets below: (SBTi) under its Net-Zero Standard, which is aligned with the need to limit global temperature rise to 1.5°C above preindustrial levels. Cisco Near-term targets was one of the 昀椀rst technology hardware and equipment companies to have its net-zero goal validated under the SBTi Net-Zero Standard. 1 By FY25: Reduce absolute Scope 1 and Scope 2 emissions by 90% (FY19 base year). Cisco’s approach to reaching net zero is anchored in reducing 48% reduction emissions across the value chain. Our goal is to reduce all scopes By FY30: Reduce absolute Scope 3 emissions from purchased goods and services, upstream of emissions by at least 90 percent by 2040 and use high-quality transportation and distribution, and use of sold products by 30% (FY19 base year).2,3 carbon removal o昀昀sets to reduce no more than 10 percent of our 4 residual emissions. 14% reduction (based on Cisco’s current Scope 3 emissions calculation methodology and subject to change) 1 We will neutralize any remaining emissions by removing an equal amount from the atmosphere. 2 The baseline and progress reported for our 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 昀椀scal 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. 4 We expect our progress to 昀氀uctuate 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 昀椀scal 2023, thus progress has decreased from 昀椀scal 2022.