Sustainability 101 is a blog series that you can turn to for information about different environmental terms that may come up at work, during discussions with friends, and even at your family gatherings.
Why Materials Matter
Materials are at the center of the technology that keeps people, businesses, and communities connected. Every hardware product depends on a complex mix of inputs, including metals, plastics, packaging, and the minerals used in electronic components. As demand for digital infrastructure grows, so does the importance of understanding where these materials come from, how they are produced, and how that can affect both people and the environment.
Sourcing materials responsibly requires both environmental and human rights considerations, including working conditions; energy use; community, water and land impacts; greenhouse gas emissions; material efficiency; and reuse and recycling. It also requires working across multiple tiers of a complex global value chain. For example, a mineral may be mined in one region, processed in another, incorporated into components by suppliers in multiple countries, and assembled into products elsewhere. At the end of a product’s useful life, it may be broken down and processed into minerals that are sent back into the global supply chain.
Attention to these issues can support business resilience. An understanding of material flows through the value chain can give visibility to potential bottlenecks. Increasing recycled content can also help ease shortages. And traceability is a growing trend in laws and regulations. But a more sustainable, compliant, and resilient supply chain cannot be achieved by one company alone; it calls for collaboration across industries, governments, and civil society throughout the global value chain.
Cisco’s Approach: Act, Engage, and Collaborate
At Cisco, when it comes to minerals, we act where we have control, engage to influence what we cannot control, and collaborate to reach further into our value chain.
In one example, the Cisco Webex Room Bar’s streamlined redesign reduced the number of internal components compared to its predecessor, resulting in over 32,000 pounds of material savings annually. This is 16 tons of material that now does not enter Cisco’s supply chain each year, while also avoiding greenhouse gas emissions.
At the other end of the lifecycle, Cisco product return programs prevent waste. Over 99% of equipment returned to Cisco is sent to reuse or recycling, giving a second life for equipment where possible and supporting materials recovery.
- Engaging to influence includes working with suppliers to support more socially and environmentally responsible minerals sourcing. We conduct due diligence on multiple minerals in our supply chain. We require our suppliers to shift sourcing through their supply chain to minerals processors who are compliant with our Responsible Minerals Policy. We are also active members of the Responsible Minerals Initiative, which sets standards for minerals processors and collaborative actions across mineral supply chains. Taken together, this work helps assure that the sources of minerals in our products align with our policies to uphold human rights and mitigate environmental impacts.
- Collaborating to reach further helps drive change in the deepest tiers of our mineral supply chain. As a member of the European Partnership for Responsible Minerals (EPRM) we support projects to improve working conditions in small scale and artisanal mines, and to connect them to global supply chains. And we support the Initiative for Responsible Mining Assurance to help increase the number of mines audited to standards for social and environmental responsibility and business integrity.
Connecting responsibility and resilience
Sourcing minerals responsibly is also a business resilience opportunity. Companies depend on access to materials and components to deliver products and services. Disruptions, regulatory changes, shifting customer expectations, and environmental or social risks can all affect supply chains.
A more responsible approach can help companies better understand where materials come from, identify potential risks, improve supplier engagement, and support business continuity over time. Designing products with reuse and recycling in mind can also help reduce dependence on newly extracted materials. Supplier engagement can support greater visibility into responsible sourcing practices. Collaboration across the value chain can help address issues that are too complex for any single organization to solve alone.
A shared responsibility
Minerals will continue to be essential to the technology and infrastructure that support our connected world. As demand grows across industries, so does the importance of sourcing and using these materials responsibly.
Cisco recognizes the complexity of the challenge and the need for continued engagement, transparency, and collaboration. By acting on what we control, engaging with suppliers and partners, and collaborating across the value chain, we can help advance progress in a way that supports people, the planet, and long-term business resilience.