HBR: Why Sustainability Is Now the Key Driver of Innovation

Cisco, for example, had traditionally regarded the used equipment it received as scrap and recycled it at a cost of about $8 million a year. Four years ago it tried to find uses for the equipment, mainly because 80% of the returns were in working condition. A value-recovery team at Cisco identified internal customers that included its customer service organization, which supports warranty claims and service contracts, and the labs that provide technical support, training, and product demonstrations. In 2005 Cisco designated the recycling group as a business unit, set clear objectives for it, and drew up a notional P&L account. As a result, the reuse of equipment rose from 5% in 2004 to 45% in 2008, and Cisco’s recycling costs fell by 40%. The unit has become a profit center that contributed $100 million to Cisco’s bottom line in 2008.

https://hbr.org/2009/09/why-sustainability-is-now-the-key-driver-of-innovation

Nice, published in 2009 though, wonder how their ideas have held up.

The following two tabs change content below.
Tito Jankowski lives in San Francisco. He's a public speaker, biotech hacker, and post-hydrocarbon expert. He is the co-founder of Impossible Labs, expediting the post-hydrocarbon economy through partnerships between startups and Fortune 500 corporations. Find him on LinkedIn. Email Tito at blog@titojankowski.comPublic PGP key. PGP Fingerprint: 5A4F 4C5C E8B7 20C3 2867 9100 C56C 881F 13AE 02D7 EFF Guide to PGP Security

Latest posts by Tito Jankowski (see all)

Leave a Reply

Your email address will not be published. Required fields are marked *