Orange Business and Cisco sign first-of-its-kind MoU to accelerate GHG emissions reduction and support net zero goals

Rhea-AI Summary

Orange Business and Cisco form a collaborative partnership to reduce greenhouse gas emissions, setting ambitious net zero goals. The agreement focuses on circular economy practices, emissions baseline creation, and eco-design principles. Both companies aim to accelerate progress towards GHG emission reduction targets by sharing data and best practices.

Insights

Environmental Sustainability Expert

The Memorandum of Understanding (MoU) between Orange Business and Cisco marks a significant commitment to environmental sustainability within the technology sector. By establishing a joint GHG emissions trajectory, these companies are not only setting an industry precedent but also aligning with growing regulatory and consumer demands for climate accountability. The emphasis on circular economy principles, such as refurbishing and recycling, is a strategic move to extend product lifecycles and reduce waste.

Moreover, the integration of eco-design into future products is an innovative approach that can lead to significant reductions in environmental impact. This could potentially create a competitive advantage as businesses and consumers increasingly prefer sustainable options. The MoU's focus on providing Lifecycle Analysis data is crucial for informed decision-making, enabling Orange Business to quantify and communicate the environmental benefits of their offerings to customers.

Market Research Analyst

The collaboration between Orange Business and Cisco reflects a broader trend in the market where companies are leveraging partnerships to achieve sustainability goals. This strategic alliance could influence customer perception positively, potentially increasing market share for both companies among environmentally conscious consumers. The provision of GHG emissions data for products and solutions could also serve as a differentiator in the market, as transparency in sustainability practices is becoming a key factor in procurement decisions.

However, the transition to a circular economy model and the adoption of eco-design principles may require substantial upfront investments. It is essential to monitor how these investments impact financial performance in the short term while potentially delivering cost savings and revenue growth in the long term through operational efficiencies and enhanced brand reputation.

Financial Analyst

The financial implications of this MoU for Orange Business and Cisco are multifaceted. Initially, there may be increased costs associated with the transition to circular economy practices and the development of eco-designed products. However, these costs could be offset by long-term savings from reduced material usage and waste management. Furthermore, the ability to provide customers with detailed emissions data may improve customer retention and attract new clients looking to reduce their own carbon footprint.

Investors should consider the potential for these sustainability initiatives to drive innovation and efficiency, which could enhance profitability over time. As the market increasingly factors in environmental, social and governance (ESG) criteria into investment decisions, this partnership may improve the companies' ESG ratings, potentially attracting socially responsible investment funds.

• Companies form collaborative partnership to accelerate progress towards GHG emission reduction goals.
• The agreement includes circular economy best practices, including refurbishing and recycling products.
• The collaboration will allow Orange Business to provide their customers an estimate of the GHG emissions from their products and solutions based on Cisco technology.

BARCELONA, Feb. 26, 2024 /PRNewswire/ -- Orange Business and Cisco have signed a Memorandum of Understanding (MoU) for a joint action plan to help reduce their greenhouse gas (GHG) emissions. The plan represents a first for both companies, deepening their partnership, and facilitating the sharing of data that will inform progress towards their net zero goals. They agree to create an emissions baseline regarding the GHG emissions of Orange Business solutions that integrate Cisco products, allowing both organisations to measure GHG emissions across their shared portfolio.

Both companies have ambitious net zero goals and other near-term targets related to reducing emissions and evolving their businesses to a circular model. Orange has set a goal to reduce its GHG emissions by 45% across all scopes by 2030*, committing to reaching net zero by 2040. Cisco has set a goal to reach net-zero GHG emissions across its value chain by 2040 and has also set a goal to reduce absolute Scope 3 emissions from purchased goods and services, upstream transportation and distribution, and use of sold Cisco products by 30% by 2030**.

This MoU arose in recognition of the interdependencies in achieving both companies' GHG emission reduction goals, and the understanding that a new kind of collaborative partnership is required to help accelerate progress. Both organisations hope that this MoU will represent the first of many collaborations towards joint net zero models.

"Sustainability is woven into everything we do at Cisco, from our product development, to our operations, to our partnerships," said Chuck Robbins, Chair and CEO, Cisco. "We have an aggressive timeline to reach net zero and our partnership with Orange Business is a major step in that direction. By sharing data and best practices, we are going to hold ourselves accountable to our shared goals and mission, and hopefully inspire others to join us in this journey." 

"Orange Group is committed to being Net Zero by 2040. At Orange Business we support both our enterprise customers and partners in their transformation to lead a more responsible economy and society," explained Aliette Mousnier Lompre, CEO Orange Business. "We encourage all stakeholders to embed environmental issues as a key priority into their day-to-day processes and activities. Together with Cisco, we can drive and satisfy these ambitions to build and empower a more sustainable future for all."

The MoU includes a number of key focus areas that Cisco and Orange Business will work together on, including:

1. GHG Emissions Trajectory
Cisco and Orange Business aim to build a GHG emissions trajectory for the Cisco products used by Orange Business. Both partners will use shared data to help estimate the GHG emissions related to Orange Business solutions integrating Cisco technology with the objective to reduce GHG emissions.

2. Carbon Impact of Products and Services
Cisco aims to provide Orange Business with data on the estimated carbon footprint of Cisco products sold by Orange Business. This will allow Orange Business to integrate this data into their own emissions calculations in order to estimate the overall carbon footprint of Orange's solutions portfolio integrating Cisco products.  Orange Business will then be able to provide their customers with an estimate of the total emissions of their supplied products and solutions.

3. Emphasis on Circular Economy Programs and Principles
Cisco and Orange Business agree to focus on increasing the uptake of circular economy principles and practices by Orange Business and its customers. This will be done through two channels, first boosting the purchase of remanufactured units through the Cisco Refresh Program, then through the uptake of Cisco´s Takeback and Reuse Program facilitated by Orange Business.

4. Eco-designed Products and Solutions of the Future
Orange Business and Cisco will also endeavor to explore different ways to integrate eco-design principles into the design of products and services. For this purpose, Cisco will provide Orange Business with Lifecycle Analysis data for its products, when available. This will help Orange Business to reach its goal of a 100% rate of eco-designed solutions offered to its customers.

Cisco and Orange Business have previously worked together on several joint sustainability initiatives***, including a smart office solution that better manages conference rooms, enhances user experience and proactively optimizes energy consumption. They also collaborated on an energy saving initiative at the Orange Velodrome in Marseille, France, developing a solution that converted always-on Wi-Fi networks to on-demand systems. Last, Orange Business is using the Flexible SD-WAN "One Box" based on Cisco technology, merging several routing features into one single unit, decreasing the environmental impact, and reducing the energy consumption by more than 70%.

Notes to the editor
* Compared to Orange Business GHG emissions from baseline year 2020.
** By Cisco fiscal year 2030 and compared to Cisco GHG emissions from Cisco's baseline fiscal year 2019.
*** Demos of these solutions will be available at the Orange Business booth at Mobile World Congress 2024.

About Cisco
Cisco (NASDAQ: CSCO) is the worldwide technology leader that securely connects everything to make anything possible. Our purpose is to power an inclusive future for all by helping our customers reimagine their applications, power hybrid work, secure their enterprise, transform their infrastructure, and meet their sustainability goals. Discover more on The Newsroom and follow us on X at @Cisco. 

About Orange Business
Orange Business, the enterprise division of the Orange Group, is a leading network and digital integrator, supporting customers to create positive impact and digital business. The combined strength of its next-generation connectivity, cloud, and cybersecurity expertise, platforms, and partners provides the foundation for enterprises around the world. With 30,000 employees across 65 countries, Orange Business enables its customers' transformations by orchestrating end-to-end secured digital infrastructure and focusing on the employee, customer, and operational experience. More than 30,000 B-to-B customers put their trust in Orange Business globally.

Orange is one of the world's leading telecommunications operators with revenues of 44.1 billion euros in 2023 and 298 million customers worldwide at 31 December 2023. In February 2023, the Group presented its strategic plan "Lead the Future", built on a new business model and guided by responsibility and efficiency. "Lead the Future" capitalizes on network excellence to reinforce Orange's leadership in service quality.

Orange is listed on Euronext Paris (ORA) and on the New York Stock Exchange (ORAN). For more information: www.orange-business.com or follow us on LinkedIn and on X: @orangebusiness

Orange and any other Orange product or service names included in this material are trademarks of Orange or Orange Brand Services Limited.

 

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SOURCE Cisco Systems, Inc.

FAQ

What is the purpose of the partnership between Orange Business and Cisco?

The partnership aims to reduce greenhouse gas emissions and accelerate progress towards GHG emission reduction goals.

What are the net zero goals set by Orange Business and Cisco?

Orange Business aims to be Net Zero by 2040, while Cisco aims to achieve net-zero GHG emissions across its value chain by 2040.

What key focus areas are included in the MoU between Orange Business and Cisco?

The key focus areas include building a GHG emissions trajectory, estimating carbon impact of products and services, promoting circular economy programs, and integrating eco-design principles into products and services.

What sustainability initiatives have Orange Business and Cisco worked on previously?

They have collaborated on initiatives such as a smart office solution for energy optimization, an energy-saving project at the Orange Velodrome, and the implementation of the Flexible SD-WAN 'One Box' based on Cisco technology.