As 2025 approaches, after what is likely to be the hottest year on record, the urgency to address our planet’s interconnected challenges has never been greater. Climate change and resource scarcity require businesses, governments and communities to act deliberately and at scale.
At Cisco, we are steadfast in our goals to reduce environmental impact and promote resilience—ensuring that communities, ecosystems, and industries can adapt, thrive, and sustain themselves in the face of uncertainty. Below are six sustainability trends expected to emerge in 2025:
1. Digitization of the grid
Artificial intelligence (AI) has the potential to drive positive change in society, but it will require rethinking networks and cleaner, more resilient and reliable energy sources. If we anticipate these challenges now, we can build the right infrastructure to support this future. This is how we can balance the demands of a rapidly digitizing society integrated with artificial intelligence and have a livable planet.
Digitization of the network is essential to meet the growing demand for energy and to strengthen energy security. For example, the U.S. Department of Energy estimates that much of the nation’s electrical grid was built in the 1960s and 1970s, and 70 percent of transmission lines are more than 25 years old. The integration of artificial intelligence could change the way energy is managed and distributed, creating more efficient and reliable systems.
At Cisco, we believe we must design and future-proof energy networks, buildings, networks, data centers, and technologies for whatever energy demands are around the corner—whether it’s artificial intelligence or otherwise. We continue to use our expertise in secure networks to drive this transformation and support a network modernization that is both innovative and resilient. Efficiency gains can also support greater affordability and reliability across the energy sector.
2. Transition to a circular economy
The shift from linear to circular business models is reshaping how industries operate, creating opportunities to reduce waste and maximize resources. But more needs to be done. The United Nations (UN) Global E-waste Monitor 2024 reports that “a record 62 million tonnes of e-waste were generated in 2022 – 82% more than in 2010; we are targeting a further 32% increase to 82 million tonnes in 2030.”
Cisco is at the forefront of the transition to a circular economy, incorporating circularity into our product design and lifecycle strategies. Our approach focuses on designing for sustainability – creating durable, modular products that can be easily repaired, upgraded and recycled.
We already do this through:
- Setting a goal to incorporate circular design principles into 100 percent of new products and packaging by our fiscal year (FY) 2025. We’re at 96 percent for our FY24.
- It offers initiatives such as Cisco Takeback and Reuse Program and Cisco Refreshwhich extends the life cycle of our devices and enables refurbishing, reuse and recycling to reduce e-waste and conserve resources.
- Reuse or recycle almost 100 percent of the products that are returned to us.
These initiatives not only support our recycling goals, but also enable customers to adopt more sustainable practices that help keep valuable materials in use for as long as possible.
3. Investment in innovation
Innovation is essential to solving the challenges of a changing planet. Globally, annual investment in clean energy technologies is expected to exceed $900 billion by 2030.
At Cisco, we work with early-stage startups that drive transformational solutions in clean energy, circularity, and climate resilience. Two exemplary companies from our Cisco Investments portfolio, CorPower Ocean and DEScycle, are leading the way in these areas.
Our goal is to accelerate innovation by investing in companies that align with our environmental sustainability strategy. These investments don’t just provide capital – they serve as a signal to the wider market about what we value and where we think the future is headed.
In 2021, Cisco Foundation demonstrated this by donating $100 million over ten years to support climate innovation in both nonprofit and for-profit start-ups.
4. Scaling impact through public-private partnerships
No single entity can tackle environmental problems such as climate change alone. The path to a more sustainable future requires partnerships across sectors. According to a 2023 report by the World Economic Forum (WEF) in collaboration with McKinsey & Company, 87 percent of public-private-philanthropic partnerships focused on emerging economies, which may be less able than advanced economies to deliver solutions independently. In 2025, we expect an increased emphasis on public-private collaboration as governments and businesses come together to localize efforts and scale up impact.
From national incentives for clean energy adoption to local initiatives that support water conservation, partnerships are critical to connecting the policies, funding and innovation needed to make meaningful progress.
5. To keep up with the two current topics of sustainability, nuclear power and water scarcity
As global energy demand continues to grow, nuclear power is re-entering the discussion as a potential solution for reliable clean energy because it does not produce greenhouse gas (GHG) emissions. According to the International Atomic Energy Agency (IAEA), the world’s nuclear capacity is now projected to increase by 2.5 times its current capacity by 2050. Nuclear power is increasingly seen as part of the diverse energy mix needed to sustain ambitious climate goals, contribute to energy security and meet growing energy demand.
Water scarcity is becoming one of the most pressing sustainability challenges of our time. According to the WWF, around 1.1 billion people worldwide do not have access to water, and 2.7 billion people experience water scarcity for at least one month of the year. Water consumption is central to the generative AI conversation, as water is a key resource required by data centers that provide AI computing power. In 2025, we expect greater innovation in water management and greater attention to equal access to this vital resource.
6. Building community resilience
Resilience is about more than the challenges of weathering – it is about the systemic ability to adapt, recover and thrive in the midst of change.
Today, technology is tightly integrated with resilience, providing the access and capabilities needed to connect and engage with society. 2.6 billion people worldwide are still without internet access, and even among those who are connected, there are disparities in quality and affordability.
By 2025, resilience is expected to be the watchword of a movement where local communities are at the center of solutions to strengthen critical infrastructure.
At Cisco, we support resilient communities through technology and innovation. From secure digital networks to network modernization, our solutions are designed to help communities and businesses respond to extreme weather and climate risks, enable reliable access to resources, and build a foundation for long-term prosperity. Resilience is important to broader sustainability efforts because stronger communities are better equipped to implement and scale more sustainable practices.
Looking ahead
At Cisco, environmental sustainability means more than just reducing the impact on the climate. We believe in building resilience to meet the challenges of today and tomorrow.
In 2025, we have an opportunity to lead with purpose and scale solutions that address climate risks while enabling communities to adapt and thrive. Read more about what Cisco has achieved in sustainability and where we hope to make progress in our FY24 Purpose Report.
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