Cisco works to minimize the waste output of our operations and our products and packaging. Responsible waste management, particularly around electronic waste, has become a focus of regulation and stakeholder interest. In addition to complying with existing regulations, Cisco has established comprehensive end-of-life management and asset recovery programs to simultaneously keep our products out of landfills while creating value for our company and our shareholders.
Program Highlights
Cisco has developed a global closed-loop reverse supply chain that allows us to recover and reuse or recycle our returned electronic equipment in major markets worldwide. In FY09, we received 23.6 million pounds of returned product, of which only 0.44 percent of materials received were sent to landfill, and these were nonrecyclable materials such as broken pallets, wet cardboard, and shrink wrap.
Reclamation and redeployment of materials is our first priority. Cisco Technology Migration Program encourages product returns by offering a discount on new products in exchange for returning used equipment. In FY09, our Value Recovery group was able to save $153 million by redeploying returned equipment.
Cisco's TakeBack and Recycle program accepts broken and old products from customers. Products that have been returned beyond capability for reuse are sent to a certified recycler that demanufactures, shreds, and sorts materials into the fraction commodities that constituted the product, which can be redeployed into the metals market.
Since 2005, Cisco has gone beyond the requirements in the EU Directive on Waste from Electrical and Electronic Equipment (WEEE) by registering as a producer in all EU countries where Cisco is permitted to do so.
In FY09, Cisco worked with suppliers to implement over 40 improvement projects focused on using less raw material and more sustainable content in packaging.
We encourage all Cisco facilities to take steps to reduce their operational waste. Programs are in place that focus on reducing electronic waste in our operations, food waste, and bottled water. In FY09, our offices and facilities throughout North America diverted 68 percent of waste from landfill.