 Dec. 1, 2008 - In this sagging economy, every bit counts: Cisco saved over $3 million last year by cutting carbon emissions and waste throughout its global supply chain, according to the company's latest sustainability report.
Cisco reports seeing the most cost benefit from using less paper, saving 2.7 million sheets of paper and at least $1.2 million a year just by converting paper documentation to CDs. The company is saving another 22 million sheets of paper and $1 million in printing costs by changing the format and reducing the font size of required printed material.
Cisco chalks up a further $880,000 annual savings by recycling 13% of the plastic used in the production of its IP phones.
Finally, the company is redeploying about 57% of the $275 million worth of products received through its closed-loop reverse supply chain takeback program. (That’s a 63% jump in value recovery from FY07 to FY08.) Products that are not redeployed are recycled, leaving less than 1% of nonrecyclable material as true scrap, according to Cisco.
These initiatives all contribute to the company’s aim of reducing its absolute greenhouse gas emissions 25% from 2007 levels by 2012.
Cisco considers itself a "virtual manufacturer," outsourcing the bulk of its manufacturing operations to supply partners. Cisco says it is working closely with supply chain partners and monitoring their ongoing compliance with the company's Supplier Code of Conduct (PDF).
"Standardizing the process of measuring environmental impacts throughout a company’s supply chain is still in the formative stage," the report says. "The scale and magnitude of the task requires collaboration with industry peers and supply chain partners."
Cisco received third-party audit reports from just 31 of its 600 suppliers last year. The company says it plans to implement quantitative environmental metrics for measuring greenhouse gas emissions, energy use, and other areas of sustainability throughout its entire supply chain in FY09.
To view Cisco’s 2008 sustainability report, click here. |
