Cisco’s circular economy goals Beyond our goals to reduce carbon emissions , we have set the following targets, which reflect key priorities in our circular economy strategy. Product and Packaging Design By FY25: Design 100% of new Cisco products and packaging to incorporate Circular Design Principles. ON TRACK: Pilot completed By FY25: Decrease use of virgin plastics by 20% (FY18 base year). 1 ACHIEVED : 38% reduction By FY25: Reduce foam used in Cisco product packaging by 75% measured by weight (FY19 base year). ON TRACK: 19% reduction By FY25: Increase product packaging cube efficiency by 50% (FY19 base year). 2 ON TRACK: 26% improvement Supply Chain By FY25: 70% of Cisco component and manufacturing suppliers by spend will achieve a zero waste diversion rate at one or more sites. 3 ON TRACK: 27% by spend with at least one certified site See Cisco’s climate goals for Supply Chain GHG goals. Learn more about our progress toward these goals in the ESG Reporting Hub . 1. Cisco has exceeded this goal, based on increased use of recycled plastic and COVID-19 impacts. While we are closing the goal based on this accomplishment, we continue to reduce our use of virgin plastic through our Circular Design Principles and product takeback and reuse. 2. Packaging efficiency is measured by comparing actual weight to dimensional weight, to determine how well products are packaged to optimize the amount of space used for shipping and storage. See more on our ESG Reporting Hub . 3. According to current standard definitions used in certification protocols, “zero waste” diversion is defined as a 90 percent or greater overall diversion of solid, nonhazardous wastes from landfill, incineration (waste-to-energy), and the environment. Diversion methods can include reduction, reuse, recycling, and/or compost. FUTURE INTRO POWER INCLUSIVE 2021 Cisco Purpose Report | csr.cisco.com | ESG Reporting Hub 85