Case Studies

See how Cisco’s supply chain auditing, corrective action, and supplier
engagement processes work in practice as part of our overall due
diligence process. Below are recent examples from our supply chain team.

Upholding Responsible Purchasing Practices

• Aligning Our Supply Chain With Our Values

• Controlling Working Hours and Days of Rest
• From Complying to Collaborating: Building Supplier Capabilities
• Helping Contract Manufacturers Avoid Excessive Working Hours

Providing Access to Remedy for Grievances and Recruitment Fee Remediation

• Accelerating Remediation With Early Risk Assessments and Commercial Leverage

• Tracing Workers to Reach as Many as Possible Who Were Impacted
• Taking a Comprehensive Approach to Recruitment Fee Remediation
• Responding to Worker Grievances

Helping Supply Chain Workers Elevate Their Voice

• Elevating Worker Voices for Longer-Lasting Health and Safety Solutions

• TenSquared Initiative
• Protecting Young Workers

Advancing Environmental Stewardship

• Fostering Collaboration for Net Zero: Cisco’s Supplier Roundtable in Thailand

• Empowering Change: How Cisco Helps Suppliers Plug Into Renewable Energy

1
Upholding Responsible Purchasing Practices

FY25 Aligning Our Supply Chain With FY24 Controlling Working Hours and
Our Values Days of Rest
When we identify adverse human rights impacts in our Working hours and days of rest continue to be a chronic
supply chain, we aim to use our influence to address issue in the electronics industry supply chain and our
and mitigate these impacts and remediate workers. most frequent audit nonconformance category.
In many cases, we have been able to collaborate with
suppliers to achieve better outcomes with workers. As a result of the Human Rights Impact Assessment
However, in rare instances where we are unable we conducted at the end of fiscal 2023, we began to
to exercise influence, we may have to consider identify and assess how Cisco could be contributing
disengagement from a supplier that will not align with to working hours fluctuations in the direct materials
our values, despite multiple attempts for collaboration. supply chain with an aim to prevent excessive working
In one case, a Responsible Business Alliance (RBA) hours. We convened a cross-functional team to identify
Validated Assessment Program audit identified that factors that could contribute to suppliers’ working hours
foreign migrant workers had paid excessive recruitment nonconformances. The team assessed factors, such
fees at a component supplier facility in Taiwan, a as supply shortages, forecast accuracy, production
violation of our Supplier Code of Conduct and a risk for goals, rush orders and lead times, and contractual
bonded labor. We engaged with the supplier following terms, to see their potential influence on working hours
our standard corrective action process to address at manufacturing and logistics partners over the past
bonded labor. The supplier agreed to stop the charging year. The team’s analysis surfaced several factors that
of recruitment fees to workers, ceasing further impacts impacted workers and production capacity: COVID-19
to workers. However, the supplier repeatedly refused affected the number of workers who were able to work
Cisco’s requests for the supplier to provide remedy on the production floor; materials shortages sometimes
and reimbursement to impacted workers. Instead, they slowed down or disrupted production; and increased
suggested to transfer production to another facility, demand put a strain on production planning and targets.
thereby avoiding, rather than addressing, the issue. These factors, alone or in concert, could make recovery
Repayment of recruitment fees to workers is required to normal working hours more difficult.
pursuant to our Supplier Code of Conduct and, typically,
With this variety of factors affecting production
Cisco guides suppliers through this process so that
schedules and planning, Cisco worked during fiscal
workers can receive this remedy.
2024 to smooth production spikes and make production
In this case, we had very low spend with the supplier planning more predictable.
and low forecasted demand, as the parts supported
For example, if materials arrived late and caused
a product that would soon no longer be available for
production delays, overtime was likely needed to
purchase. As a result, Cisco had little to no influence
catch up with the production plan and meet deadlines,
to incentivize the supplier to follow international
potentially triggering short-term spikes in working hours.
standards and align to our values. Due to the supplier’s
To mitigate the risk of disruption due to materials
unwillingness to meet our requirements, an assessment
shortages, Cisco has worked to build material safety
was made to remove the site from our supply chain and
stock or extra inventory on hand.
cease allocating business to it. Cisco initiated a process
to disengage, which involved identifying an alternate Cisco has also been working to simplify the
supplier, conducting a risk assessment prior to initiating manufacturing of our products. We have simplified
business with the new supplier, and reallocating our
purchases. At completion of the alternate supplier’s
onboarding, we broke off the relationship with the
noncooperative site.

2
Upholding Responsible Purchasing Practices (continued)

our network, or the number of manufacturing sites that FY24 From Complying to Collaborating:
build Cisco’s final products, resulting in a consolidation Building Supplier Capabilities
of business volume across fewer facilities. We have
At Cisco, we know first-hand the value of fostering
also simplified manufacturing processes to increase
collaborative relationships with our suppliers to drive
throughput and implement universal production
social and environmental outcomes. When one of
lines where possible. These provide benefits to our
our suppliers rolled out a new sustainability program
manufacturers by allowing them to better plan and utilize
and expressed an openness to learn from Cisco on
their capacity. The higher baseline production volumes
social and environmental issues, we recognized this
should provide more stability over time, reducing the
as an opportunity to pilot a new partnership model
likelihood they will be significantly impacted by erratic
to help build their capabilities. We initiated quarterly
demand fluctuations for niche product lines.
social- and environment-focused touchpoints with
Cisco has worked to provide manufacturing partners their sustainability team to support their efforts.
with increased visibility into the forecast pipeline,
This partnership model set the stage for open,
extending that visibility from less than one year, to a
transparent conversations about challenges and
rolling 24-month window across the Cisco hardware
various paths toward improvement. Cisco shared
product portfolio. Updated monthly, these forecasts
valuable lessons learned from our own journey, such
could provide manufacturers with a longer-term
as overcoming the challenges of greenhouse gas
outlook on demand within the pipeline and help
(GHG) emissions accounting or standardizing social-
support materials and capacity planning.
and environment-related data. In return, the supplier’s
When Cisco forecasts, it aims to give manufacturers sustainability team provided insights into their sub-tier
the most accurate outlook. When there are projected supplier management efforts around GHG reduction and
discrepancies in forecasts and the actual customer industry-level climate work they were involved in.
orders, Cisco’s supply chain works with the sales
Our conversations advanced to forward-thinking
organization to analyze the differences. We then quickly
dialogue about tackling shared challenges, the industry’s
adjust so manufacturers have the most accurate outlook
future trajectory, and ways to stay ahead of the curve.
and mitigate potential challenges. The difference
For example, at the start of our engagement, the
between forecast and actual is reviewed on a quarterly
supplier had not yet set an absolute GHG reductions
basis in an effort to make continuous improvement
goal, a Cisco requirement and common industry
of estimates.
expectation, but it had committed to setting a science-
It is challenging to determine how much impact any of based target to reduce GHG emissions and was in
these singular actions make on smoothing production the process of developing the goal. The collaboration
spikes and production planning, especially since Cisco enabled open sharing between Cisco and the supplier
continued to see the lingering effects of the COVID-19 of common experiences and lessons learned on climate
pandemic on supply chain operations through the first target setting and roadmap development. Today, the
half of fiscal 2024. However, we are optimistic that supplier’s target has been formally approved by the
these actions, in addition to collaborating closely with Science-Based Target initiative, which means it is in
manufacturing partners, support both Cisco’s and line with the latest climate science, and the team is
our suppliers’ goals for more feasible and predictable ramping up its own supply chain engagement program
production targets, and consequently, optimized staffing around GHG reduction. The supplier continues to
and reductions in last-minute changes to overtime. report its climate progress publicly through annual

3
Upholding Responsible Purchasing Practices (continued)

sustainability reports and CDP, as well as collaborating As a result, both Cisco and the manufacturer
proactively with Cisco to discuss strategies to achieve collaborated to implement short-term solutions to
the established emissions reduction goals. reduce working hours and eventually prevent excessive
working hours over the longer term. While there were
Cisco’s journey toward net zero and advancing other robust communication channels to address production
social and environmental goals is linked with our needs, there were less robust channels open around
suppliers’ progress. Collaborating with our suppliers the impacts of variable working days, such as holidays,
to understand and address their unique challenges and their impact on working hours and consecutive
has proven to be an effective model for strengthening working days. As a near-term solution, production
business relationships and co-innovating solutions that schedulers were empowered to factor in the variety
drive mutual environmental and social progress. of observed holidays to create a more effective overall
working schedule to support working hours and days-off
goals. Over the long term, Cisco and the manufacturer
FY22 Helping Contract Manufacturers Avoid
intend to work more closely with supply planning to
Excessive Working Hours communicate the timing of supply shipments and
During fiscal 2022, Cisco discovered that one of our adjust deliveries in a manner designed to support
third-party contract manufacturers’ locations was workforce planning.
experiencing persistent working hours nonconformances
for several quarters in a row. As part of our due diligence, The discovery process generated valuable lessons
we worked to understand why. During the discovery that Cisco is working to operationalize so that we
process, Cisco brought together stakeholders from the can better support our contract manufacturers to avoid
contract manufacturer and Cisco’s internal operations excessive working hours. Through this process, Cisco
and production planning departments to identify the gained greater understanding of the ways in which
root causes. It was revealed that multiple factors were supply chain constraints can demand more dynamism
at play: late shipment arrivals were prompting overtime from plant managers and how these variables impact
work on weekends, lengthening consecutive working workers’ schedules. We are continuing to work to give
days; order backlogs created pressure to manufacture plant managers the tools to more effectively forecast
products outside of planned production schedules how ebbs and flows in component parts could affect
to meet customer expectations; and labor shortages the volume of product produced, and thus the number
exacerbated the situation. In addition, there were of workers needed to realize such orders.
plantwide shared staff — emergency personnel — whose
total number of hours were not being accounted for.

4
Providing Access to Remedy for Grievances and
Recruitment Fee Remediation

FY25 Accelerating Remediation With Early helped to expedite progress by overcoming challenges,
Risk Assessments and Commercial Leverage such as tracing payments made by workers and
gathering documentation.
At Cisco, we aim to embed human rights due diligence
into key processes within our operations and sourcing Within eight months, the supplier reimbursed 34 foreign
decisions, starting from the earliest stages of supplier migrant workers a total of approximately US$145,000.
onboarding. Setting expectations early with prospective Reaching this outcome was not just about contractual
suppliers allows us to source from suppliers who align obligations or exercising Cisco’s leverage; it was the
with our values and are more likely to maintain that result of a deep partnership where human rights due
alignment throughout our relationship. It also allows us diligence was woven into the sourcing decision‑making
to identify and prevent potential adverse human rights process and the development of the supplier
impacts and prevent our business from contributing relationship early on.
to or being linked to them. In one such case, early
expectation setting and detection set the stage for a This experience underscores how integrating social and
swift, collaborative response and better outcomes for environmental responsibility into business operations
impacted workers. empowers sourcing teams to drive meaningful change.
By combining commercial leverage with active
Cisco’s process is to require new suppliers and sites partnership and clear expectations and guidance, Cisco
to complete a social and environmental responsibility is better able to maintain a responsible supply chain and
survey before initiating business. During this process, promote better human rights outcomes.
we flagged a potential risk at one of our prospective
suppliers: Foreign migrant workers were paying
recruitment fees, a known indicator of bonded labor risk FY24 Tracing Workers to Reach as Many as
according to the International Labour Organization and Possible Who Were Impacted
a violation of our Supplier Code of Conduct. The Cisco Cisco identified risks of bonded labor at a component
commercial team who manages the relationship with the supplier factory in Taiwan and engaged the supplier
supplier played a pivotal role, having already informed to assess the impacts to workers. The RBA third-party
the prospective supplier of Cisco’s policies and fees investigation uncovered that the issue was more
expectations for responsible social and environmental complex than initially understood. In worker interviews,
conduct early in business discussions. When the investigators confirmed that they had been paying
risk was identified, Cisco escalated to the supplier’s recruitment fees during their employment. However, they
leadership team that resolving the recruitment fee also learned that some workers had been transferred
issue was a prerequisite to completing the onboarding from another employer at which they had also been
process. At that point, the supplier had a choice: Risk subject to fees. Through deeper engagement with
potential future business with Cisco or invest more workers and management, investigators found that those
resources and incur more upfront costs in order to meet workers had been transferred from another business
Cisco’s requirements. unit that reported into the same parent company. The
Recognizing that Cisco treats fee remediation very investigation followed workers’ employment history to
seriously, the supplier committed to meeting Cisco’s itemize fees that they paid with their current employer,
requirements, including an aggressive timeline to fees paid with the previous employer (the other business
institute the Employer Pays Principle and remediate. unit), and fees they may have paid in the sending and
With Cisco’s clear guidance and frequent collaboration receiving countries during their recruitment journey. The
— sometimes meeting three to five times a week — the amount owed to workers doubled after accounting for
supplier navigated unfamiliar territory in reimbursing the other business unit’s activities.
workers for recruitment fees. This hands-on support

5
Providing Access to Remedy for Grievances and
Recruitment Fee Remediation (continued)

Cisco reiterated expectations for the employer to workers. This situation highlighted the importance of
pay all recruitment and employment-related fees, in Cisco-supplier collaboration and the need to support
alignment with international human rights standards. suppliers in making good faith efforts to correct issues.
In collaboration with the parent company, steps were It was also a reminder of the role of effective and
taken to stop fees from being charged across multiple accessible grievance mechanisms, like EthicsLine, in
business units, and to reimburse workers according to driving access to remedy for supply chain stakeholders.
the investigation’s results.

The reimbursement process was complete for impacted FY24 Update

workers. However, the RBA received grievances from
During fiscal 2024, we continued to engage
two different workers. Both workers alleged they were
with the departed worker who filed the grievance
entitled to reimbursement but were missed due to the
and the employer. The factory increased efforts to
timing in which they were transferred between the
contact departed workers. However, the RBA received
business units and the timing of the investigation. RBA,
grievances from two different workers. Both workers
Cisco, and the supplier are continuing to address the
alleged they were entitled to reimbursement but were
issue so that the remaining impacted workers can also
missed due to the timing in which they were transferred
receive access to remedy.
between the business units and the timing of the
investigation. RBA, Cisco, and the supplier continue to
collaborate to address reimbursement of transferred
FY23-FY24 Taking a Comprehensive
or departed workers so that the remaining impacted
Approach to Recruitment Fee Remediation workers can also receive access to remedy. The worker
Our “no fees” policy prohibits the charging of recruitment who had filed the grievance was able to provide names
fees to workers, and if we discover that workers have and contact information for another 19 departed workers
paid fees, we work with suppliers to facilitate repayment who were also eligible to receive reimbursement. In
to workers. Sometimes, by the time the supplier total, we were able to facilitate the reimbursement of 31
has initiated repayment of fees to affected workers workers who had departed the supplier. Engaging with
according to an agreed-upon remediation plan, some the worker who came forward was critical to being able
workers no longer work for the company. We became to reach as many impacted workers as possible. As a
aware of a situation like this in fiscal 2023, when a result, 49 more workers were able to be reimbursed in
worker reported to Cisco’s EthicsLine that they had not the last year.
been compensated for the recruitment fees they paid.

Cisco worked with the RBA to cross-reference who FY22 Responding to Worker Grievances
had already received payments. We discovered that
In fiscal 2022, the Supply Chain Sustainability team at
the worker was correct, and that they were not alone in
Cisco received a complaint through Cisco’s grievance
having missed out on reimbursements from switching
mechanism, EthicsLine. A supply chain worker alleged
employers. This led to deeper discussions with our
that their employer was a supplier to Cisco and that
supplier on how they were handling reimbursements
they were subjected to a variety of forced labor issues,
for departed workers. In line with our commitment to
including passport withholding, recruitment fees, and
nonretaliation, RBA and Cisco obtained consent from
penalties for resigning.
impacted workers before identifying them to the supplier
so that the supplier could make reimbursements. Cisco reviewed the worker’s allegations and opened
a formal channel to directly communicate with the
Along with the RBA, Cisco is working to help impacted
worker to gather more information and receive periodic
workers receive access to repayment, and the supplier
updates. In conjunction with this conversation, Cisco
is making greater efforts to connect with departed

6
Providing Access to Remedy for Grievances and
Recruitment Fee Remediation (continued)

reviewed our business relationships with the supplier The plan mandated the following changes:
and identified it as a “low-spend” components
supplier — a supplier that provided parts to Cisco’s • A timeline to reimburse employees
manufacturing partners. Due to low spend and lack of • Updates to policies to prohibit fees paid by workers
visibility into sub-tier relationships and data on worker
characteristics, Cisco had not included the supplier • Revised worker contracts to remove a requirement
in our vulnerable worker risk assessment as part of that workers pay fees
our usual risk-based process. However, in light of the
worker complaint, Cisco engaged with the supplier and • Revised labor agent contracts to prevent fees from
confirmed multiple elements of the allegation. being passed on to workers and removed other
restrictions agents put on workers
Cisco took immediate action to address the allegations,
including putting the supplier on a Supplier Improvement Cisco is continuing to work with the RBA to monitor
Plan, an internal Cisco process aimed at improving the supplier site’s progress toward remediating the
supplier performance to comply with our standards and affected workers and to validate that the corrective and
policies. To ensure a comprehensive investigation and preventive actions were implemented effectively.
thorough mitigation plan, Cisco alerted and engaged
This case brought forward a host of lessons learned.
the RBA, which conducted a Specialty Validated
We continue to find power in collective action, especially
Assessment Program on forced labor. The RBA
when it comes to driving change with suppliers with
garnered industry support and used collective leverage
which we have low leverage. We also continue to
to show the supplier that they would have to conform to
explore how broader education of suppliers and direct
a consistent set of conditions and industry standards.
engagement with labor brokers and affected workers
The industry approach minimized confusion for the
can drive elimination of forced labor within the supply
supplier and meant that a single entity would drive the
chain, especially where local law on issues such as
fulfilment of the Corrective Action Plan (CAP).
charging recruitment fees conflicts with international
standards and best practices.

7
Helping Supply Chain Workers Elevate Their Voice

FY25 Elevating Worker Voices for to educate workers on the importance of properly
Longer‑Lasting Health and Safety Solutions wearing PPE to protect their health and safety.

Inspired by our learnings from the TenSquared program, To make the experience of wearing PPE more
Cisco is continuing our worker engagement initiatives. comfortable, the project team asked 30 workers to
We support suppliers to involve their workers when sample two different masks; one of the options proved
developing and implementing CAPs for health- and to be a clear winner with 80% of the surveyed workers
safety-related audit nonconformances. We equip the listing it as their preference. While some workers were
supplier with guidance and resources — such as sample still resistant, the project team designed two different
surveys and a root cause analysis tool — to facilitate PPE trainings to ensure effectiveness: one through
worker engagement and collect valuable input. their official training platform and another delivered by
production line workers. In the worker-led training, they
We originally launched this model in fiscal 2023 for introduced the risks of failing to wear PPE appropriately,
addressing personal protective equipment (PPE) the type of masks which are most protective and how
nonconformances. Since fiscal 2025, we have expanded to wear them correctly, and how to hold one another
this engagement model to include chemical management accountable for PPE safety. The team tested workers’
nonconformances and accessible infrastructure issues knowledge improvement, collected workers’ input, and
for workers with disabilities, implementing it across adjusted the training material based on their feedback.
11 sites. Finally, they established monthly awards to recognize
Encouraging suppliers to involve their workers in those wearing PPE consistently. As a result, they reached
developing longer-lasting health and safety solutions their goal of 100% compliance in just four months.
has driven notable outcomes. For example, one supplier In fiscal 2025, four sites resolved their PPE
had a Major nonconformance because soldering workers nonconformances, and five different pieces of
were wearing the incorrect type of mask required by an PPE were upgraded based on workers’ feedback,
occupational hazards assessment report. With Cisco’s improving health and safety outcomes for more
guidance, three management representatives from than 574 workers in our supply chain.
the supplier company’s human resources department,
procurement department, and production department, Despite our successes, Cisco has found year over year
alongside four worker representatives from the that not all factory sites are eager to adopt this model,
production line, established a project team to resolve preferring traditional top-down management approaches
the issue. Together, they set a goal that 100% of the to resolve nonconformances. To help overcome this
soldering workers would wear the required masks when resistance, we set regular touchpoints with suppliers to
entering and operating in production areas. coach them throughout CAP closure. We aim to continue
scaling this worker engagement model throughout fiscal
The project team utilized Cisco’s root cause analysis tool 2026 to empower more workers across our supply chain.
and identified that in addition to providing workers with
the wrong kind of masks, there was insufficient training

8
Helping Supply Chain Workers Elevate Their Voice (continued)

FY24 Elevating Worker Voices for culture of peer-enforced safety, the workers from the
Longer‑Lasting Health and Safety Solutions focus team help monitor production areas to ensure
employees are regularly wearing the masks properly
Inspired by our learnings from the TenSquared program, and following protocol.
Cisco has now piloted our own worker engagement
initiative. When we discover that a supplier is After the trial, surveys showed that workers were
nonconformant due to PPE issues, we ask suppliers to satisfied with the new masks. It was time to embed the
involve their workers as part of their CAP. We support new equipment and practices into formal procedures.
the supplier with guidance and materials, such as All workers received a special instruction form
sample surveys and a root cause analysis tool, so that outlining the importance of wearing PPE and signed
they can engage workers and gather their input in an acknowledgement showing they understood the
developing solutions. We piloted this initiative in fiscal protocol. Not only were workers pleased with the
2023 and have continued it throughout fiscal 2024, changes, but factory management saw the value of
learning valuable lessons along the way. workers’ ideas, recognizing that this collaborative
approach would lead to more sustainable solutions
Encouraging suppliers to involve their workers in than just issuing warnings. They plan to expand this
developing longer-lasting health and safety solutions model to address other environment, health, and
has driven some notable outcomes. For example, safety issues in their facility.
one supplier had a Major nonconformance because
workers were not wearing specialized carbon masks So far, Cisco has implemented this model of
needed to filter out hazardous fumes. With Cisco’s incorporating worker voice in health and safety CAPs
guidance, four site leaders and six workers established management across nine different sites, with eight
a focus team to resolve the issue, setting a goal that sites resolving their nonconformances leveraging this
100% of the 750 workers would wear the required model during fiscal 2024. Overall, this work resulted
masks when entering production areas. By surveying in 10 different pieces of PPE being upgraded based
a sample of 29 workers, it was revealed that workers on workers’ feedback, improving the health and safety
weren’t wearing masks consistently because they were of more than 1,300 workers in our supply chain.
uncomfortable. Complaints included small and stiff Despite our successes, Cisco has found that not all
ear straps, hard metal boning across the nose, a lack factory sites are eager to adopt this model, preferring
of size options, and itchy material that was subject to traditional top-down management approaches to
pilling quickly. The focus team considered these factors resolve nonconformant findings. To help overcome this
as they evaluated various alternative mask brands and resistance, we set regular touchpoints with suppliers
selected the most comfortable options. Then, the site to coach them throughout CAP closure. We aim to
conducted a trial run for all 750 employees and provided continue scaling this worker engagement model
education regarding how the mask would protect throughout fiscal 2025 to empower more workers
them from fumes during production. Finally, to foster a across our supply chain.

9
Helping Supply Chain Workers Elevate Their Voice (continued)

TenSquared Initiative Overall, Cisco was proud of the breadth and depth of
solutions that the program sparked:
FY22 TenSquared Launch
• One of the suppliers focused on increasing workers’
Engaging supply chain workers is crucial but not always
OHS behavior rate from about 80% to about 95% in a
easy. To help facilitate dialogues with supply chain
pressing production workshop. The supplier site has
workers, Cisco in fiscal 2022 partnered with the nonprofit
maintained that improved rate into fiscal 2023. A key
Social Accountability International (SAI) to implement its
innovation the workers requested was to designate
TenSquared program — a 100-working-day engagement
personal safety observers who wore blue vests and
effort that brings together supply chain workers and
who could support workers in maintaining proper
managers to collaboratively identify and address
health and safety behaviors during every shift, day
occupational health and safety (OHS) challenges.
or night. This uniform became a visual reminder for
As part of our emphasis on industry collaboration, workers, especially those new to the factory floor, to
Cisco and another industry peer jointly deployed the follow steps to safeguard their health and safety. This
TenSquared program at four supplier sites in fiscal 2022. simple action has encouraged both managers and
There were 10 participants at each site — five managers workers to continue to work together to ensure that
and five front-line workers — who worked together over safety is a priority.
the 100 working days to jointly identify an issue and
• In addition, they trained workers to take more
achieve a goal focused on OHS. Workers and managers
responsibility around health and safety by helping
were tasked with creating systemic solutions that would
determine if their workplace was safe or not.
last beyond the duration of the TenSquared program.
Managers invited workers to help brainstorm and
Ahead of the program’s launch, the 10 members at each devise workplace safety solutions, including having
site held pre-project meetings to finalize and introduce workers observe and flag safety precautions.
team members. Subsequent two-day launch workshops Workers agreed to rotate this observer role so that
were held, where the teams raised issues of concern, each worker could have the opportunity to perform
such as operational safety rates, noise levels, and and watch the implementation of safe behaviors.
chemical and hazardous chemical risk exposure rates, By engaging more workers in a practical way, the
and started brainstorming ways to tackle them. During supplier found that workers prioritized safe behaviors
the next several weeks, teams came up with ideas to and even reminded colleagues to do the same. In
tackle their chosen problems, review the challenges, and essence, the training created a culture of safety
adjust the plan during a midpoint review workshop. The rooted in worker inclusion and buy-in that has been
program ended with a sustainability review workshop to sustained with new hires who joined during and after
ensure the supplier sites could embed key TenSquared the TenSquared workshop.
themes and implement its methodology, either through
additional workshops or other OHS mechanisms.

10
Helping Supply Chain Workers Elevate Their Voice (continued)

The program team from the four suppliers provided “Working with Cisco’s suppliers was unforgettable and
positive feedback from the workers and managers, meaningful,” said Jane Liu, Senior Manager at SAI,
which convinced Cisco to continue this program in “because of Cisco’s deep understanding of the project
fiscal 2023. Feedback we received included: and creation of an open and independent innovation
space for suppliers. This was very helpful to the workers’
• “The methodology has improved the factories’ efforts, helping their voices be heard and actions
original management weaknesses.” accounted for. The most exciting changes and the most
encouraging achievements took place during these short
• “This program is more useful than internal OHS
100 days. We appreciate Cisco’s leadership in making
training and is very interesting.”
this opportunity available in their supply chain.”
• “100 days is too short; we wish we could have more
opportunities to exchange ideas.”
FY23 TenSquared Update
• “Nice to hear from workers that they need more Cisco and another industry peer jointly deployed
training and info on hazardous materials.” TenSquared at three supplier sites during fiscal 2023.
Using TenSquared revealed that greater worker The 10 participants at each site — five managers and
engagement yields sustainable solutions to tough five front-line workers — worked together to identify a
workplace issues. In addition, bringing together workers health and safety issue and then come up with a durable
and managers improved overall communication, with solution that would outlast the 100 days.
management becoming more aware of workers’ One solution the team chose to tackle was appropriate
ability to contribute solutions to many onsite issues. use of PPE. At one supplier site, available PPE was
The collaborative framework of TenSquared created a going unused, and worker feedback revealed that the
mechanism whereby workers feel more comfortable available equipment was uncomfortable and poorly
sharing their ideas, and where workers can get fitting. The group decided that managers would buy
recognized for innovation. Workers also feel more different types of PPE, and workers would vote on
empowered since they have a better understanding the most comfortable options. This led to greater
of the purpose of health and safety policies and use of the equipment, with more than 180 workers
procedures. The workers thus see how their adherence wearing protective footwear and 56 wearing more
to and participation in workplace safety results in comfortable safety goggles. Learning from this solution,
an overall safer environment. Cisco will continue Cisco adopted new practices as part of its CAP
TenSquared in fiscal 2023 to help these four suppliers process whereby workers are consulted regarding
sustain this program methodology and will partner with findings related to PPE — in essence extending these
additional suppliers to expand the program’s benefits. positive outcomes beyond this one supplier site.
Since implementing these new practices, Cisco has
engaged four factories around their PPE-related audit
findings, and one has already switched to face masks
that workers found more comfortable. This change is
expected to impact more than 750 workers.

11
Helping Supply Chain Workers Elevate Their Voice (continued)

At another site, workers use carts to transport printed FY22 Protecting Young Workers
circuit boards for temporary storage after they are
Cisco aims to improve working conditions in our supply
assembled. A worker suggested locking carts to the
chain, including identifying and auditing “high risk”
staging area — a solution that can not only protect
suppliers to ensure they comply with our Supplier Code
products from falling and save money, but also prevent
of Conduct. This includes protecting workers between
injuries to workers.
the ages of 16 and 18 who are legally permitted to work
Deploying TenSquared revealed that greater worker in the relevant jurisdiction, specifically against the types
engagement can yield solutions to tough workplace of work that could negatively impact their health, such
issues. It increases managers’ awareness of workers’ as overtime and night shifts.
abilities to contribute solutions, meanwhile helping
Cisco considers young workers a vulnerable group,
workers feel more comfortable sharing their ideas.
alongside others such as migrant workers and
“TenSquared is a very good project,” said one marginalized peoples. We make extra efforts to identify
participant. “It didn’t just help us improve health and and mitigate risks at the manufacturing and components
safety issues, but also helped us understand that good suppliers who employ them. Our Juvenile Labor Policy
ideas are in workers’ heads. Once we find out about and Expectations outlines how we protect workers
those good ideas, we can help each other and build up between the ages of 16 and 18.
mutual trust.”
In April 2021, Cisco conducted an RBA audit of a
Cisco will continue TenSquared in fiscal 2024 to help component supplier site that was identified as high
these three suppliers sustain their achievements. risk in our annual assessment and with whom we had
low spend and low leverage. This audit uncovered
that managers were having their young workers work
FY24 TenSquared Update overtime and night shifts, which is not allowed under
In fiscal 2024, three supplier sites participated in Cisco’s Supplier Code of Conduct. In addition, the site
TenSquared with the goal of reducing workplace did not register all juvenile employees at the local labor
risks. Since fiscal 2022, 10 Cisco supplier sites have administrative department, which is a violation of local
participated in TenSquared and have engaged over legal requirements. There were also other labor and
4,100 workers to participate in the problem-solving health and safety issues at the component supplier site.
process, resulting in longer-lasting solutions.
As part of the CAP, the site registered all the young
workers with the local administrative authorities, but
FY25 TenSquared Update refused to immediately resolve the overtime and night
shift for these workers, citing regional labor shortages.
In fiscal 2025, four supplier sites participated in To address Cisco’s expectations, the site chose to
TenSquared with the goal of reducing workplace reassign workers from Cisco designated production
risks. Since fiscal 2022, 14 Cisco supplier sites lines to another part of the factory rather than stop
have participated in TenSquared and have engaged them from working overtime and night shifts, raising
5,983 workers to participate in the problem-solving a red flag for Cisco. Cisco persisted in asking for the
process, resulting in longer-lasting solutions. cessation of all overtime and night shifts for the young

12
Helping Supply Chain Workers Elevate Their Voice (continued)

workers — not just shifting workers so that they were “Cisco has a Purpose to Power an Inclusive Future
not linked to building Cisco products. In subsequent for All. We believe in a world with equal access to
discussions, the supplier proposed a mitigation timeline opportunity, a world in which businesses operate with
of several years to replace the younger workers with all aspects of society in mind,” said Buckle, Head of
age-appropriate workers. This solution again did not Specialty Technologies, Global Supplier Management.
satisfy Cisco’s requirement for an immediate resolution. “Cisco prides itself on using its supply chain to catalyze
Cisco persisted, and, in December 2021, Gordon Buckle positive impacts for people and communities, and this
and his team from Global Supplier Management held situation showed that Cisco’s persistence could create
steadfast to Cisco’s expectations, and Cisco and the better outcomes.”
supplier were able to foster a path forward.
Cisco continues to ensure that vulnerable workers, such
Cisco’s persistence led the supplier to resolve the issue as young workers, while not a large portion of the overall
successfully; continuous escalation through supply chain worker population, are protected and not mistreated.
management and continued focus on full conformance
to our standards is what finally drove the supplier to fix
their nonconformance. A final review by Cisco’s supply
chain sustainability team validated that all overtime
and night shifts for young workers were stopped
in June 2022, with the supplier providing sufficient
evidence to prove that the issue had been resolved.

13
Advancing Environmental Stewardship

Fostering Collaboration for Net Zero: Cisco’s In Southeast Asia and particularly Thailand, many
Supplier Roundtable in Thailand suppliers face significant hurdles in adopting renewable
energy. These challenges include high investment costs,
As Cisco continues its journey toward reaching net‑zero lengthy permitting processes, fluctuating electricity
GHG emissions across its value chain by 2040, we prices, and regulatory policies that limit solar installation
recognize that progress requires collective action capacity. At the same time, accurately calculating PCFs —
across our supply chain. In fiscal 2025, Cisco hosted a critical tool to inform emissions reduction — is hindered
a net‑zero workshop in Thailand, bringing together 27 by a lack of standardized methodologies, limited data
attendees representing 14 Thai supplier sites, as well transparency, and the complexity of collecting emissions
as business partners, environmental professionals, and data across supply chains. Addressing these barriers
local experts. The workshop aimed to address critical supports our 2030 Scope 3 emissions reduction target1
challenges related to renewable energy adoption and and our 2040 net-zero goal.
Product Carbon Footprint (PCF) calculations, promoting
collaboration, knowledge sharing, and actionable The workshop underscored the importance of mutual
solutions to empower our suppliers in advancing their learning and support. Suppliers gained insights into
sustainability efforts while jointly driving progress toward overcoming financial and regulatory barriers, while
Cisco’s net-zero goal. Cisco deepened its understanding of supplier needs
and challenges. Together, participants identified
Key focus areas included: actionable next steps, such as forming a Power
• Renewable Energy Adoption: Participants Purchase Agreement (PPA) cohort for Thai suppliers,
highlighted the financial and regulatory barriers to advocating for policy improvements and developing
renewable energy procurement and explored ways more accessible tools for PCF calculation, including
to streamline permitting, reduce costs, and enhance standardized methods, streamlined data collection,
market access. and capacity‑building.

• PCF Calculations: The workshop emphasized the While the transition to renewable energy in Thailand is a
need for standardized tools and methodologies to long-term endeavor, the workshop successfully laid the
improve data accuracy and enable more targeted groundwork for collective action. Success will ultimately
emissions reductions. Suppliers shared challenges be measured by the level of collaboration achieved, the
in accessing granular data and discussed how launch of joint projects, reductions in investment costs,
Cisco could provide support through training, data and progress on renewable energy adoption. By working
platforms, and IoT-based monitoring systems. closely with suppliers and empowering them with the
tools, resources, and knowledge they need, Cisco is
• Knowledge Sharing and Collaboration: Suppliers helping to pave the way for a more resilient supply chain.
exchanged best practices, from joint purchasing
agreements to innovative energy management
solutions, while Cisco facilitated discussions on
leveraging its network to drive collective impact.

1
Reduce absolute Scope 3 emissions from purchased goods and services, upstream transportation and distribution, and use of sold products
by 30% by fiscal 2030 (fiscal 2019 base year). The baseline and progress reported for our fiscal 2030 goal includes a subset of Scope 3
Category 1 (purchased goods and services from manufacturing, component, and warehouse suppliers), a subset of Scope 3 Category 4
(upstream transportation and distribution from Cisco purchased air transportation), and all of Scope 3 Category 11 (use of sold products).

14
Advancing Environmental Stewardship (continued)

Empowering Change: How Cisco Helps education, and support needed to join the agreement.
Suppliers Plug Into Renewable Energy Cisco’s facilitation of this initiative demonstrates the
power of pooling regional demand to accelerate the
To make progress toward our net-zero goal, we transition to clean energy:
collaborate across our supply chain to reduce emissions
associated with product manufacturing. That’s why in • Four supplier sites, representing three Cisco
fiscal 2025, Cisco joined forces with two consumer suppliers, purchased over 27 million kilowatt-hours
brands to collectively help suppliers access affordable (kWh) of clean energy through this program in fiscal
clean energy in China. 2025 (this includes 22 million kWh from PPAs and
5.9 million kWh from GECs). This collective action
The project began by offering suppliers education is expected to avoid 167,174 metric tons of CO2
sessions about how to procure clean energy through emissions, which is equivalent to the annual emissions
PPAs and Green Electricity Certificates (GECs). The PPA of approximately 3,634 passenger vehicles.
and GEC bidding project allows multiple companies to
buy clean energy in bulk directly from energy providers. • One of the supplier sites had never purchased clean
By pooling their energy demands, companies can energy previously, but is now powering 15% of the
negotiate lower prices, making clean energy more cost- site with clean energy, thanks to the competitive
effective. In this initiative, Cisco worked to coordinate pricing that resulted from this joint effort.
our suppliers’ participation, ensuring they had the tools,

15