Circular economy For decades, the global economy has been based on a “take-make-dispose” model, where products are manufactured from virgin materials, purchased, used, and then discarded. This linear model is not sustainable. It depletes scarce natural resources, creates too much waste, and produces carbon emissions that contribute to climate change. In fact, 45 percent of global emissions are attributable to creating items we use every day, including clothes, cars, technology, and other products. Advancing a circular economy, therefore, is not only a way to preserve limited resources—it is also an important climate solution. Cisco is working to integrate circular economy principles across our business and at every stage of the product lifecycle. This process starts with circular design, which involves carefully selecting the materials we use and choosing recycled and renewable sources where possible. We also design products and packaging to make it easier for them to be repaired or remanufactured, with the goal of extending their useful lives. We are improving the customer experience to drive increased product returns, as well as developing as-a-service models that embed circularity and facilitate return and reuse. We are helping promote a circular economy up and down our value chain and with a variety of stakeholders. For example, Cisco’s digital technology solutions can help customers derive value from a circular model and achieve their own sustainability goals, such as minimizing resource use and waste. We partner with manufacturing suppliers to reduce their own GHG emissions and waste, and facilitate our recycled material sourcing. Our CEO, Chuck Robbins, is a signatory to the Platform for Accelerating the Circular Economy (PACE) Capital Equipment Pledge, committing to 100 percent product return upon request, at no cost to our customers. We are also a Member of the Ellen MacArthur Foundation, which brings together businesses, academia, and policymakers working toward common circular economy priorities. In fiscal 2021, Cisco also formally joined the Circular Electronics Partnership (CEP), a multistakeholder collaboration of NGOs and companies in technology, consumer goods, and waste management, with the shared goal of accelerating the circular transition for the electronics industry. Read about additional key partnerships in our ESG Reporting Hub . The circular economy is about making sustainability a business imperative. Companies that embrace and enact circular principles today are those that will thrive tomorrow and into the future. For the benefit of our customers, suppliers, employees, and the planet, we are committed to being one of those companies. ” — John Kern, Senior Vice President, Supply Chain Operations FUTURE INTRO POWER INCLUSIVE 2021 Cisco Purpose Report | csr.cisco.com | ESG Reporting Hub 84