Addressing climate change Climate change poses significant risks to people, communities, ecosystems, and businesses. For Cisco, it represents a long-term strategic priority, not just as a risk to manage, but also as an opportunity to help enable the global transition to a low -carbon future. Cisco’s carbon footprint As a large, global company, we have a responsibility to decrease the greenhouse gas (GHG) emissions from our operations and products. This starts with understanding the contributors to our emissions footprint. In 2020, 99 percent of our GHG emissions resulted from the use of our products and our supply chain. Similar to many of our peers in the technology industry, many of the products we make operate 24/7 and stay in use for several years. Therefore, it is a business imperative for us to continue to design our products to optimize energy efficiency, which helps to reduce emissions in our value chain. Our operations account for only 1 percent of our total emissions. However, we remain committed to reducing our energy use by procuring renewable electricity where possible, improving the energy efficiency of our buildings, and minimizing impacts from workforce commuting and business travel. CHART 21: Cisco’s Scope 1, 2, and 3 emissions 1 EMISSIONS SOURCE % OF TOTAL ● Scope 3 use of sold products 75% * ● Scope 3 purchased goods and services 22% * (includes capital goods) ● Scope 3 upstream transportation and distribution 2% ● Scope 1 and 2 emissions 1% ● Scope 3 business travel <1% ● Scope 3 employee commuting <1% ● Other Scope 3 categories <1% 1 Numbers may not add up to 100 percent due to rounding. In addition, we are in the process of refining our methodology for calculating several Scope 3 categories. As a result, the distribution of our scope 3 emissions across categories has changed compared to fiscal 2020. We expect these figures to continue to change over time as we continue improving our processes. Emissions are defined according to their scope. The Greenhouse Gas Protocol defines Scope 1, 2, and 3 emissions as follows: ● Scope 1 (direct emissions): GHG emissions directly emitted from operations that are owned or controlled by the reporting company. ● Scope 2 (indirect emissions): GHG emissions from the generation of purchased or acquired electricity, steam, heating, or cooling consumed by the reporting company. ● Scope 3 (indirect emissions): All indirect emissions (not included in Scope 2) that occur in the value chain of the reporting company, including both upstream and downstream emissions. FUTURE INTRO POWER INCLUSIVE 2021 Cisco Purpose Report | csr.cisco.com | ESG Reporting Hub 75