Cisco Systems, Inc., The Goldman Sachs Group, Inc. - Special Call - SEHK:4333

SEHK:4333

During the transcript of the Cisco Systems ESG Update Call on January 14, 2020, Emily Hunt, the Investor Relations Manager, made the following statements:

1. Introduction and Forward-Looking Statements Disclaimer:

   • Emily provided a disclaimer regarding forward-looking statements, noting that any forward-looking statements made during the call are subject to risks and uncertainties.
   • She directed listeners to Cisco's SEC filings, which can be found on Cisco's IR website at investor.cisco.com, for more information on the risks and uncertainties associated with the forward-looking statements.

2. Handover to Katherine Toch:

   • After her disclaimer, Emily handed over the call to Katherine Toch, the Director of People & Communities at Cisco, to present on the company's commitment to creating an inclusive future through its corporate social responsibility (CSR) program.

These were the main points covered by Emily Hunt during the call.

Katherine Toch, the Director of People & Communities at Cisco, provided a comprehensive overview of Cisco’s corporate social responsibility (CSR) efforts. She highlighted the following points:

• Introduction: She thanked everyone for joining the call to discuss Cisco's commitment to creating an inclusive future through its CSR program.

• Overview of CSR at Cisco: Katherine shared an overview of CSR at Cisco, referring to it as corporate social responsibility (CSR), and highlighted the progress made in fiscal year 2019 globally. She noted that Cisco launched its 15th annual CSR report on December 10, 2019, in accordance with the GRI standards, serving as a single source of truth for environmental, social, and governance work.

• Structure of the Report: The report is divided into two parts: "The Story" and "The Details." "The Story" provides high-level insights into Cisco's strategy around CSR and sustainability, as well as key initiatives related to priority areas. "The Details" comprises 90% of the report and delves deeper into data, metrics, and progress.

• ESG Materiality Assessment: Every other year, Cisco conducts a deep ESG materiality assessment engaging both internal and external stakeholders to understand emerging risks and opportunities and determine the issues most relevant to Cisco's business and where it can have the greatest impact.

• Three Pillars of the Report: The detailed section of the FY19 report is organized into three pillars: People, Planet, and Society. Each pillar discusses priority issue areas.

• People Section: This section covers programs for employees, including inclusion and collaboration, employee community impact, team development, health and wellness, and ethics and integrity. It emphasizes the importance of employees in driving innovations for customers and partners worldwide.

• Society Section: The society section has five key priority areas:

  • Building skills and entrepreneurship: Focusing on creating a talent pipeline and establishing the workforce of the future.
  • Strategic social investments: Leveraging cash and technology grants to accelerate global problem-solving in areas like human needs, disaster response, education opportunity, and economic empowerment.
  • Technology and human rights: Ethical conduct, data security, privacy, and digital rights.
  • Data privacy and security: Protecting customer data and promoting strong data privacy policies.
  • Responsible sourcing and manufacturing: Ensuring suppliers adhere to ethical standards and driving environmental impact.

• Planet Section: The planet section focuses on advancing environmentally sustainable growth in a digital world. Key priority areas include energy and greenhouse gas emissions, and material use and waste.

• Integration of CSR into Business Strategy: CSR is tightly integrated with business strategy, involving a continuous feedback loop that includes stakeholder engagement analysis, feedback to the business, and long-term goal setting.

• Progress Highlights:

  • Employee engagement: 51% of employees engaged in volunteering or donating, aiming for 80% participation by 2020.
  • Impact on people and communities: Positively impacted 469 million people towards a goal of impacting 1 billion people by 2025.
  • Reduction in Scope 1 and 2 GHG emissions: Achieved a 60% reduction.
  • Renewable energy: Generated electricity from renewable sources for at least 85% of the goal by FY22.

• Reporting Process: CSR reporting includes the annual report and stakeholder engagements throughout the year, such as the Carbon Disclosure Project and the Dow Jones Sustainability Index, which help in understanding goals and progress.

• Interactive Tool: Mentioned a new web-based interactive tool for a more engaging approach to the report.

• Closing Remarks: Katherine thanked everyone for participating in the call and expressed appreciation for the insightful questions, indicating a willingness to respond to any unanswered questions promptly.