Intro Power Inclusive Future For All FY23 Purpose Report | 39 Looking Ahead Addressing emissions in our Collaborating with clean supply chain energy initiatives Engaging our suppliers is necessary to reduce the emissions that Cisco also supports suppliers in their clean energy transitions. In In January 2023, Cisco joined the Eco-Skies Alliance, which brings arise from manufacturing and transporting our products. Along with together United Airlines and leading global corporations to help 昀椀scal 2023, we engaged with suppliers through surveys and in direct reaching net-zero emissions across our value chain by 2040, Cisco conversations to better understand their own challenges in GHG power lower-emissions air travel by investing in sustainable aviation has a near-term target to reduce emissions in our supply chain and emissions reductions and renewable energy utilization. Looking fuel (SAF). SAF is a biofuel with similar properties to conventional from our customers’ use of our products by 30 percent by 昀椀scal 2030 ahead, we are working on developing a renewable energy strategy to jet fuel but a smaller carbon footprint. Depending on the feedstock 1 (昀椀scal 2019 base year). The 昀椀rst step in reducing our supply chain help us guide suppliers in accessing clean energy solutions that are and technologies used to produce it, SAF can reduce lifecycle GHG emissions is to ensure our suppliers are committed to making right for them and that add new renewable energy to the grid. Learn GHG emissions dramatically, compared to conventional jet fuel. For emissions reductions and tracking and reporting on those e昀昀orts. more about supplier engagement on emissions reduction in our ESG now, SAF is not widely available and is not yet incorporated in our That’s why Cisco also set a goal to have 80 percent of our component, Reporting Hub. emissions accounting reporting. With this investment, however, Cisco manufacturing, and logistics suppliers by spend set a public, absolute is sending a demand signal to support increased production of SAF. GHG emissions reduction target by 昀椀scal 2025. We collaborate Cisco also recently joined the RE100 initiative, which brings together with suppliers to reduce the emissions of their operations, such as businesses committed to 100 percent renewable electricity. supporting initiatives to reduce energy use and providing resources for Sourcing more renewable energy is an important part of Cisco’s emissions accounting and absolute or science-based target setting. Supplier climate target goal to reach net zero by 2040 and our near-term Scope 1 and 2 In 昀椀scal 2023, we piloted the RBA's new Emissions Management Tool target. Beyond helping us make progress toward our own goals, with key manufacturing suppliers to help businesses better understand By FY25: 80% of Cisco component, joining RE100 supports Cisco’s ambition to increase clean energy energy use and related emissions at their sites. manufacturing, and logistics suppliers by access globally and contributes to the private-sector demand for spend have a public, absolute GHG emissions renewables. We also continue to engage with renewable energy 2 reduction target. providers and buyers through the Clean Energy Buyers Alliance 92% with targets (CEBA) and the U.S. Environmental Protection Agency's Green Power Partnership, and we are a founding member of the Asia Clean Energy Coalition. 1 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. 2 Suppliers are expected to set absolute GHG emissions reduction targets or intensity targets that produce an absolute emissions reduction during the target period. Cisco encourages suppliers to set targets in line with an approved science-based methodology. Progress toward this goal is quanti昀椀ed using Cisco’s supply chain spend which can vary annually. Cisco will continue to work with suppliers to set their own absolute GHG emissions reduction targets, and to report progress toward this goal annually through 昀椀scal 2025.