Brian Suckow - Business Case for Sustainability at Opportunity Green 2010

The Business Case for Sustainability - Sus Sustai tainab nabilit ility y Business Business Value Value Frame Framework work - Cisc Cisco’s o’s Resu Results lts from from Colla Collaboratio boration n Initiativ Initiatives es

Presentation at the Opportunity Green Conference Brian Suckow Director, Internet Business Solutions Group, Innovations Team September 24, 2010

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Sustainability Business Value Framework Increase Profitability and Shareholder Value

Increase Operating Efficiency

Mitigate Risks    

Regulatory Competitive Physical Reputation

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



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Efficient communications Energy efficiency Networked solutions  Asset utilization

Differentiate Existing Business 

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Expanded green offerings Initiatives to help customers become green Green brand building

Enter New Businesses 

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 

 Vertical integration Renewable energy Carbon credits Technologyenabled business models

Source: Cisco IBSG, 2008 Cisco Public

Copyright © 2010 Cisco Systems, Inc. All rights reserved. reserved.

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Sustainability Business Value Framework Increase Profitability and Shareholder Value

Increase Operating Efficiency

Mitigate Risks    

Regulatory Competitive Physical Reputation









Efficient communications Energy efficiency Networked solutions  Asset utilization

Differentiate Existing Business 





Expanded green offerings Initiatives to help customers become green Green brand building

Enter New Businesses 



 

 Vertical integration Renewable energy Carbon credits Technologyenabled business models

Source: Cisco IBSG, 2008 Cisco Public

Copyright © 2010 Cisco Systems, Inc. All rights reserved. reserved.

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Cisco’s Results from Collaboration Initiatives 

Key Solutions: – Business Travel Optimization – Connected Workplace – Telecommuting

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Fiscal Year 2009 Impact: – $913 million net benefits – 214,000 metric tons CO2e avoided

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Business Travel Optimization Redefi Red efining ning Col Collab labora oration tion with with TelePres TelePresenc ence e

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Business Travel Optimization Enabling Working Team Collaboration

Source: Cisco IBSG, 2010 Cisco Public

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Connected Workplace Improving Productivity and Engagement

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Greenhouse Gas Emissions Reduction From Reduced Air Travel Fiscal Year 

Number of  Employees

Air Travel Emissions, metric tons CO2e/year 

2006

40,785

190,940

Per Capita Emissions, metric tons CO2e/year per  employee 4.68

2007

48,009

205,797

4.29

2008

56,222

197,872

3.52

2009

59,528

115,995

1.95

2009 at 2006 Per Capita Emissions Avoided

59,528

278,865

4.68

162,689

Source: Cisco Corporate Social Responsibility Report, 2009; Cisco IBSG, 2010 Cisco Public

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Cisco’s Results from Collaboration Initiatives Fiscal Year 2009 Results

Solution

Business Travel Optimization Optimization:: - Co Cost st Sa Savi ving ngs s - Pr Prod oduc ucti tivi vity ty - Revenue Connected Workplace

Benefits, Avoided Emissions, $ million/year  metric tons CO2e/year  162,700* $469M $127M $115M $14M 2,700

Telecommuting Total

$299M

48,300

$1,024M

213,700

Net Financia Financiall Impact Impact = Benefit Benefits s – Costs Costs = $1,0 $1,024M 24M – $111 $111M M = $913 $913M M Source: Cisco IBSG, 2010 Cisco Public

*Avoided air travel emissions based on comparison to what would have resulted if emissions per employee remained constant constant at FY06 levels while Cisco grew our employee base. Copyright © 2010 Cisco Systems, Inc. All rights reserved. reserved.

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Resources 

Cisco IBSG Green Business Value Calculators (Remote Collaboration, Collaboration, Telecommuting, Telecommuting, Connected Workplace, Connected Building) http://www.cisco.com/web/about/ac79/docs/ppt http://www.cisco.com/web/about/ac7 9/docs/ppt/Cisco_IBSG_Green /Cisco_IBSG_Green  _Business_Value_Calculators.ppt

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Cisco IBSG Economics of Collaboration http://www.cisco.com/web/about/ac79/docs/pov/Ec http://www.cisco.com/web/about/ac7 9/docs/pov/Economics_Collabo onomics_Collabo ration_POV_FINAL_041009.pdf 

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Cisco 2009 Corporate Social Responsibility Report

(p. C32)

http://www.cisco.com/web/about/ac2 http://www.cisco.com/ web/about/ac227/csr2009 27/csr2009/pdfs/CSR_09.pd /pdfs/CSR_09.pdf  f 

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