Cisco has always tried to conduct business in an environmentally responsible manner. We implement environmental management systems (EMSs) to comply with environmental regulations, as well as to look for continuous improvement in our efforts. We are applying EMSs to all our major sites worldwide, to be certified pursuant to the ISO14001 environmental management standard.

At each of Cisco's major sites, a team uses EMSs to identify and prioritize the most relevant and important regulatory and nonregulatory risks and opportunities. These issues may range from managing hazardous waste to increasing employee awareness of environmental issues to monitoring water use. Often these initiatives are driven by the operational practices or community concerns at particular sites. The team prioritizes projects that address risks and identifies opportunities for improvement.

Progress and Future Plans

During FY2006, sites at Austin, Texas; Bedfont Lakes and Reading, United Kingdom; and Amsterdam, Netherlands attained ISO14001 certification, bringing the total number of certified sites to eight and increasing the percentage of employees covered by EMS activities to 64 percent.

In FY2006 we focused on integrating our EMS with other management systems and procedures to improve its effectiveness. We also improved our procedures for training internal auditors and mentors who oversee the program and the communication and information management tools associated with the program.

Cisco's ISO14001 Certified Sites

In the first quarter of FY2007, we expect the following sites to attain ISO14001 certification:

• Paris, France
• Brussels, Belgium
• Tokyo, Japan
• Sydney, Australia
• Herndon, Virginia
• Boulder and Englewood, Colorado

Cisco EMS Audits