What is the current state of sustainability in the region and how fast is that maturing? How do the European and Middle East markets differ when it comes to this maturity?
EMEAR is a big and diverse region therefore the economic, political and market dynamics differ from country to country. Naturally, in our ecosystem, we observe different levels of maturity, scale, and innovation. Having said this, most of our customers are prioritising sustainability and investing in technology to help them reach their business goals.
If we look at the Middle East, the region has historically faced challenges halting progress in the sustainable agenda. During the last decade, however, efforts towards a sustainable future have picked up momentum. On top of the list is sustainable development. Initiatives such as the The Red Sea Project are creating a global blueprint for green, smart cities. At the same time, CIOs are realising the value data analytics and insights can offer towards sustainability therefore we are seeing a rise in investment in platforms and tools that offer improved visibility. Such analytics are helping them become wiser with their energy consumption. Overall, selecting the right technology to meet sustainability targets has become a key priority.
The potential for economic growth is sizable and it is accelerating timelines. The MEA (Middle East & Africa) region stands to unlock more than $3 trillion in economic growth and create more than 1 million future-proof jobs by 2030. This is evident in Europe too, where, especially in Scandinavian countries, the growth aspirations have increased dramatically in recent years. Our customers are enquiring about technology architectures for efficiently distributed energy production and consumption with real-time management capabilities. A lot of them are re-thinking their infrastructure and reviewing efficiencies of their platforms, data centers, and cloud environments. We are seeing this trend specifically in Denmark.
Can you share some of the key issues that are shaping sustainability agendas across enterprises?
A circular economy has been on the agenda of many enterprises over recent years. From supply chain to packaging and re-using products and materials, there is a wealth of opportunities to reduce both the resources we consume and the waste we generate. When Cisco sells something, we expect to see it again when our customer’s no longer use it. We do not charge for returns, and we reuse or recycle 99.8% of the products we get back. We set the bold goal to design 100% of new Cisco products and packaging to incorporate Circular Design Principles by 2025 and are on track.
In the wake of the pandemic, hybrid work has also become a major conversation for many organisations. Sustainability has become a key aspect when shaping the future of work: virtual meetings have replaced business travel, organisations are rethinking the use of office spaces and investing in innovative building technologies (lighting, HVAC, sensors) to reduce energy consumption.
Another key issue is talent acquisition. According to research, nearly 40% of millennials have chosen a job because of company sustainability, while nearly 70% of respondents to a US-based survey said that a strong sustainability plan would affect their decision to stay with that company long term. With this in mind, maintaining a competitive advantage by securing top talent also depends on prioritising sustainability.
There are widespread conversations on the rise of purpose-driven customers. What opportunities does this present for businesses today?
Whether its corporate social responsibility, sustainability or a conscious culture, customers and consumers are increasingly looking beyond the products and offerings, wanting to buy from and engage with companies whose values and purpose they can relate to. To put it in perspective, according to a Harvard Business School report, 77% of customers are motivated to purchase from companies committed to making the world a better place, while 73% of investors state that efforts to improve the environment and society contribute to their investment decisions. This change in customer behaviour is pushing companies to realise that having an environmentally concisions strategy is a competitive advantage.
Based on your conversations with Cisco customers, do you see a lot of recognition when it comes to sustainability being a key business driver for them today?
Absolutely! Keeping in mind the differences in scale and rhythm we discussed previously, customers are ramping up their efforts to implement ESG (Environmental, Social, and Governance) frameworks and policies and they see digital technology as a critical enabler to lessen their environmental impact.
To offer a couple of examples, in Europe, Cisco is working with Enel, an electricity distribution company, to connect solar and wind energy to its network. We are using the Cisco CX Cloud to manage thousands of networking devices and set the path to a cleaner, more sustainable future. In the Middle East, Cisco is designing an entire portfolio of customised smart services for TRSDC, which includes environment sensing measures, ranging from animal monitoring to pollution management. This technology deployment is helping The Red Sea Development Company realise its commitment to making a net positive 30% contribution to biodiversity, relying 100% on renewable energy & achieving 75% LEED Buildings Accreditation.
How can organisations kick off their journeys toward becoming SDG-aligned or ESG-relevant?
The starting point should be ensuring that your organisation’s sustainability goals are aligned to its existing strategy and business priorities. A solid next step is translating these priorities into tangible use cases and defining KPIs to measure success. As a rule, embracing an innovation mindset through the entire process is also essential to leverage the sustainability agenda in generating growth and opening the door to new business opportunities.
Once priorities are defined and key performance indicators (KPIs) are set, organisations should look at the right technology investment to support their vision. This can be a ‘make it or break it’ moment and it can be incredibly complex. Our Advisory team often challenges, ‘you can put a Boeing engine in a car to make it go faster, but is that the right way to do it’? Customers need technology that is designed in an environmentally conscious way and helps them reduce their emissions while improving resource efficiency. They also need access to analytics and insights to advance their suitability agenda.
How is Cisco championing sustainability? What current and future initiatives do you have?
We look for opportunities to minimise our impact on the environment in every corner of our business and supply and seek ways technology can reduce energy use and greenhouse gas (GHG) emissions. Currently, our sustainability strategy is based on three key pillars:
- Developing sustainable technology solutions: We continuously innovate to make our solutions more energy efficient to drive down the emissions of the internet and digital transformation.
- Taking action: For the last 15 years, Cisco has been committed to reducing its environmental impact. We laid out a roadmap of commitments and concrete actions to achieve it and to hold ourselves accountable. Our commitments focus on renewable energy, the energy efficiency of our products, and how our solutions can help our customers reduce their carbon emissions, as well as supply chain and a circular economy. In September 2021, we announced that we will be net zero across all scopes of emissions by 2040, including our products, operations, and supply chain. We will achieve net zero emissions for all our global Scope 1 and Scope 2 emissions by 2025.
- Engaging employees, customers, partners, and communities: Because it will take all of us to deliver an inclusive and sustainable future, we invest in supporting innovative climate solutions across the globe. We look for innovative ideas from both within Cisco and across our ecosystem. This year in EMEAR, we launched the Green & Blue innovation challenge calling our employees to pitch their ideas for solutions that can help Cisco, its partners and customers address environmental matters. We have awarded $1 million so far through our annual Cisco Global Problem Solver Challenge which is open to early-stage entrepreneurs around the world. In the UAE, we have just launched Power the Future; the Cisco sustainability challenge, inviting university students to share their innovative ideas.
