Corporate Responsibility 2010 Report
Content
2010 Corporate Responsibility Report
At Intel, we never stop looking for bold ideas in technology, business, manufacturing, and corporate responsibility. Amazing things happen with Intel Inside.® In this report, we discuss our corporate responsibility performance during 2010, including our strategic approach to key environmental, social, and governance indicators. We prepared this report using the Global Reporting Initiative* (GRI) G3.1 guidelines, and we self-declare the report at the GRI Application Level A.
On the cover:
The “visibly smart” 2nd generation Intel® Core™ processor family features built-in graphics that enable a richer, higher performance computing experience while efciently managing power use.
“Corporate social responsibility is no longer optional for business leaders. I am very proud of Intel’s long history of transparency and leadership in this area, and for the actions taken by employees in 2010 to push to higher levels of performance; we continue to extend our impact worldwide, with our education programs and driving energy efciency in our products.” Jane E. Shaw, Chairman Chairman of the Board
L e t t e r
f r o m
o u r
C e o
Throughout Intel’s history, we have pushed the boundaries of what’s possible to improve how people work, live, and play. Our vision for the next decade is even more ambitious: to create and extend computing technology to connect and enrich the lives of every person on earth. A key determinant of our success will be our ability to innovate and advance our leadership in corporate corpo rate responsibility. responsibility. At Intel, we don’t separate corporate responsibility from our business. One of the four objectives in our global strategy is, “Care for our people and our planet, and inspire the next generation.” Every person at Intel has a role in achieving this objective, whether they design our products, work in our factories, or interface directly with our customers or suppliers. Our
$1 billion to improve education globally, partnering with educators, governments, and other companies to develop a range of transformative programs and technology solutions. In 2010, in conjunction with U.S. President Barack Obama’s “Educate to Innovate” campaign, Intel announced a $200 million commitment to advance math and science education in the U.S.
employees’ ongoing focus and achievements create value for Intel and for society. Ca ppl. We ppl. We work to cultivate a safe, respectful, and ethical work environment that enables employees to thrive both on the job and in their communities. We invest heavily in mentoring, training, and leadership development programs, including targeted initiatives aimed at increasing the number of women and under-represented minorities in our managerial ranks. By investing in our employees, we empower them to build stronger communities; in 2010, close to half of Intel’s workforce donated more than 1 million hours of service in schools and nonprot organizations globally.
In February 2011, I was honored to host President Obama on a visit to our Oregon site, where we discussed our shared commitment to improving education, and its critical importance to fueling innovation and sustainable economic development.
Ca h pla. Development pla. Development of energy-efcient computing technologies is a key part of our efforts to help our customers conserve energy and address the issue of climate change. Our new Intel® Xeon® processor 5600 series for servers, for example, can increase performance by up to 40% while also saving power compared to the previous-generation Intel® Xeon® processor 5500 series. For the past three years, Intel has been the largest voluntary purchaser of green power in the U.S., according to the U.S. Environmental Protection Agency. In 2010, we also opened our rst Leadership in Energy and Environmental Design (LEED)-certied building, a design center in Israel. Ipi h gai. gai. We We believe that a solid math and science foundation coupled with key skills such as problem-solving, critical thinking, and collaboration are the foundation for innovation. Over the past decade, Intel and the Intel Foundation have invested more than
Looking ahead, we will continue to address challenges in reducing water use and chemical waste in our operations as we grow, and to drive leadership in supply chain responsibility. As part of our effort to operate with the gentlest environmental footprint possible, we will explore new ways that we can apply our technology—along with the considerable energy and talents of our employees—to improve economic and environmental sustainability, and to transform education and technology access around the world. While the world faces huge social and environmental challenges, I am proud to be part of a company that can—and is—making a difference. I encourage you to read this report and give us your feedback and ideas. Working together, we can make our world a better place for everyone.
Paul S. Otellini President and Chief Executive Ofcer
C o n t e n t s
overvIew
5 Cpa Pl 9 sagy a maag Appach 10 An Integrated, Strategic Approach 11 Management and Decision-Making 12 Stakeholder Engagement 16 Sustainability Trends: Key Challenges and Opportunities 17 Performance Summary 18 Corporate Responsibility Goal Summary 19 Awards and Recognitions GovernAnCe And eConomIC fACtors
20 fiacial Pac a ecic Ipac
envIronmentAL fACtors
32 ei 33 Our Approach to Environmental Sustainability 36 Climate Change and Energy Efciency 43 Water Conservation
79 spply Chai 80 Our Approach to Supply Chain Responsibility Responsibility 84 2010 2010 Assessment and Audit Summary
Click on image to watch video.
86 Conict-Free Minerals
? Click on icon for more information.
48 Waste: Reduce, Reuse, Recycle
87 Supplier Diversity 88 Supplier Environmental Impact
50 Reducing Air Emissions
91 Performance Summary & Goals
51 Energy-Efcient Performance and Product Ecology 53 Applying Technology to Environmental Challenges 55 Performance Summary & Goals soCIAL fACtors
58 wkplac 59 Our Approach to Empowering Employees
92 Cibi sciy 93 Our Approach 95 Education Transformation 100 Community Engagement and 100 Employee Volunteerism 104 Entrepreneurship and 104 Social Innovation 107 Empowering Girls and Women 107 109 Performance Summary & Goals 109
21 201 2010 0 Financial Performance
APPendIx
23 Economic Impact
66 Workforce Diversity and Inclusion
111 About This Report/Approach to Assurance
70 Compensation, Benets, and Work/Life Effectiveness
112 GRI Content Index 112
26 Governance and Ethics 29 Public Policy and Advocacy 31 Political Accountability
Look for these icons throughout this document to learn more.
63 Career Growth and Development 65 Communication and Recognition
25 Gac, ehic, a Pblic Plicy
Ab thi dc
74 Health and Safety, and Employee Wellness 78 Performance Summary & Goals
119 UN Global Compact— 119 Communication on Progress Progress
The information contained here is interactive. Use your mouse to roll over select content to get more details.
rc sa • Adobe Acrobat,* Version 7.0 and above. • QuickTime*
Note: References to “Intel” throughout this document pertain to Intel Corporation. Intel Foundation is a separate entity.
o v e r v I e w
3 Letter From Our CEO overvIew
5 Cpa Pl 9 Strategy and Management Approach GovernAnCe And eConomIC fACtors
20 Financial Performance and Economic Impac t Impact 25 Governance, Ethics, and Public Policy Polic y envIronmentAL fACtors
32 32 Environment Environment soCIAL fACtors
Corporate Prole Intel is committed to pushing the boundaries of technology to make the lives of people everywhere more exciting, fullling, and manageable. We enable innovation across a spectrum of computing devices by building successive generations of microprocessors that can cost less to manufacture, have improved performance and energy efciency, and offer more capabilities.
58 58 Workplace Workplace 79 79 Supply Supply Chain Chain 92 Contributions to Society Societ y APPendIx
11 1 11 About This Report/Approach to Assurance Assurance 112 1 12 GRI GRI Content Index Index 119 1 19 UN Global Compact— Communication on Progress Progress
m b iag.
1
2 3
Ky Cpa lik:
90
61
Percentage of 2010
Percentage of wafer
Number of transistors
revenuethat derived from products did not exist at beginning of year
manufacturingand (including microprocessors chipsets) that took place at our U.S. sites as of year-end 2010
that in Intel shipped 2010
~
Access the Report Builder 2010 2010 Corporate Responsibility Report www.intel.com/go/responsibility 5 Back
Next
Previous View
%
%
10
Quintillion
Intel 2010 2010 Annual Report and Form 10-K Intel Investor Relations Intel Sponsors of Tomorrow.™ Intel© Products Technology Leadership Innovation at Intel
o v e r v I e w
3 Letter From Our CEO overvIew
5 Cpa Pl 9 Strategy and Management Approach GovernAnCe And eConomIC fACtors
20 and Financial Performance Economic Impac t Impact 25 Governance, Ethics, and Public Policy Polic y envIronmentAL fACtors
32 32 Environment Environment soCIAL fACtors
58 58 Workplace Workplace 79 79 Supply Supply Chain Chain 92 Contributions to Society Societ y APPendIx
11 1 11 About This Report/Approach to Assurance Assurance 112 1 12 GRI GRI Content Index Index 119 1 19 UN Global Compact— Communication on Progress Progress
Intel is the world’s largest semiconductor chip maker, based on revenue. We develop advanced integrated digital technology, primarily integrated circuits, for industries such as computing and communications. Our goal is to be the
New categories of compute devices such as smartphones, smart TVs, tablets, in-vehicle systems, and more are connecting to the Internet and becoming more intelligent—and Intel is at the center of this trend. We shipped our 80 millionth Intel® Atom™ processor into the netbook market segment in 2010, and our products are being designed into more than 35
preeminent computing solutions company that powers the worldwide digital economy.
tablets, many of which are expected to launch in 2011. In 2010, we introduced nine products for the smart TV market segment, for televisions, Blu-Ray* players, and set-top boxes. For more information, visit our Products Products web web site or our 2010 Annual Report and Form 10-K. 10-K .
We are transforming from a company with a primary focus on the design and manufacture of semiconductor chips for PCs and servers to a computing company that delivers complete solutions in the form of hardware and software platforms and supporting services. We serve customers in more than 120 countries, and at scal year-end 2010 we had 82,500 employees in more than 50 countries. To learn more about Intel’s history of innovation, visit our Corporate Timeline Timeline web web site.
Pc Our products include microprocessors, chipsets, motherboards, and wireless and wired connectivity products, as well as platforms that incorporate software to enable and advance these components. We strive to optimize the overall performance of our products by improving energy efciency, seamless connectivity to the Internet, and security features. Most of our revenue is from the sale of microprocessors and chipsets, and the majority of our microprocessors are manufactured using our 32-nanometer (nm) second-generation Hi-k metal gate silicon process technology. In December 2010, we introduced the 2nd generation Intel® Core™ processor family (formerly code-named Sandy Bridge Bridge),), a new micro1 architecture based on our 32nm process technology that represents the largest increase in computing performance and capabilities over any previous generation in our history. Members of this family incorporate over 1.1 billion transistors.
Access the Report Builder 2010 2010 Corporate Responsibility Report www.intel.com/go/responsibility 1
6 Back
Next
Previous View
Microarchitecture refers to the layout, density, and logical design of a microprocessor.
C We sell our products primarily to original equipment manufacturers (OEMs) and original design manufacturers (ODMs). We also sell our products to other manufacturers, including of a wide range of industrial communications equipment. Ourmakers customers include those who buy and PC components and our other products through distributor, reseller, retail, and OEM channels throughout the world. In 2010, Hewlett-Packard Company accounted for 21% of our net revenue and Dell Inc. accounted for 17% of our net revenue (these percentages were unchanged from 2009). No other customer accounted for more than 10% of our net revenue. In 2010, 80% of our revenue came from outside the Americas.
opaig sg Intel has multiple operating segments spanning the continuum of computing products and services. In the rst quarter of 2011, we completed the acquisition of McAfee Inc. to accelerate and enhance our hardware and software security solutions, improving the overall security of our platforms; and the Wireless Solutions business of Inneon Technologies AG to expand our capabilities in the area of connectivity.
o v e r v I e w
3 Letter From Our CEO overvIew
5 Cpa Pl 9 Strategy and Management Approach GovernAnCe And eConomIC fACtors
20 and Financial Performance Economic Impac t Impact 25 Governance, Ethics, and Public Policy Polic y envIronmentAL fACtors
In 2010, 69% of Intel’s revenue was attributable to the PC Client Group, 20% to the Data Center Group, 7% to the Other Intel Architecture Group, 1% to the Software and Services Group, and 4% to All Other.
58 58 Workplace Workplace 79 79 Supply Supply Chain Chain 92 Contributions to Society Societ y APPendIx
11 1 11 About This Report/Approach to Assurance Assurance 112 1 12 GRI GRI Content Index Index 119 1 19 UN Global Compact— Communication on Progress Progress
7 Back
Next
Previous View
PC Cli Gp
Delivering microprocessors and related chipsets and motherboards designed for the notebook and desktop (including high-end enthusiast PCs) market
Glbal opai
Intel Mobile Communications
As of the end of scal 2010, 61% of our wafer fabrication, including microprocessors and chipsets, was conducted within the U.S. at our facilities in Arizona, New Mexico, Oregon, and Massachusetts. The remaining 39% of
Delivering mobile phone components such as baseband processors, radio frequency transceivers, and power management chips.
Embedded and Communications Group
Delivering microprocessors and related chipsets for embedded applications.
Netbook and Tablet Group Digital Home Group
Delivering microprocessors and related chipsets for the netbook and tablet market segments.
Ultra-Mobility Group
Delivering low-power Intel architecture-based products for the next-generation handheld market segment.
our wafer fabrication was conducted outside the U.S. at our facilities in Israel, Ireland, and China. Our facility in Dalian, China began wafer manufacturing in the fourth quarter of 2010. Following the manufacturing process, the majority of our components are assembled and tested at facilities in Malaysia, China, Costa Rica, and Vietnam. Our Vietnam facility began production in the rst half of 2010. To augment capacity, we use subcontractors to perform assembly of certain products, primarily chipsets and networking and communications products.
As of the end of scal 2010, the majority of our microprocessors were manufactured on 300mm wafers using our 32nm process technology. In the second half of 2011, we expect to begin manufacturing microprocessors using our 22nm process technology. The benets of moving to each succeeding generation of process technology can include using less space per transistor, reducing heat output from each transistor, and/or increasing the number of integrated features on each chip. These advancements can result in microprocessors that are higher performing, consume less power,
2010 2010 Corporate Responsibility Report www.intel.com/go/responsibility
dci d cipi pi
daa C Gp
In addition, we have sales and marketing ofces worldwide.
Access the Report Builder
op op a aig ig s sg g
Subsequent to year-end 2010, we divested our Digital Health Group by forming an equally owned joint venture that will focus on independent living and delivery of health-related services via telecommunications. The new company, Intel-GE Care Innovations, LLC, LLC, was was formed by combining assets of the General Electric Company’s GE Healthcare Home Health division and Intel’s Digital Health Group.
32 32 Environment Environment soCIAL fACtors
Il opaig sg a Ya- 2010
and/or cost less to manufacture. For more information about our products, customers, and operations, see the Intel 201 2010 0 Annual Report and Form 10-K 10-K..
segments; and wireless connectivity products. Delivering microprocessors and related chipsets and motherboards designed for the server, workstation, and storage computing market segments; and wired network connectivity products.
oh Il Achic Gp
Delivering Intel architecture-based products for next-generation consumer electronics devices.
sa a sic Gp McAfee
Wholly owned subsidiary delivering software products for endpoint, system, consumer, and network security; and risk and compliance.
Wind River
Wholly owned subsidiary delivering device soft-
Software Group
ware optimization products to the embedded and handheld market segments, serving a variety of hardware architectures.
Software and Services Group
Delivering software products and services that promote Intel architecture as the platform of choice for software development.
All oh Non-Volatile Memory Solutions Group
Delivering advanced NAND ash memory products for use in a variety of devices.
Corporate
Revenue, expenses, and charges such as: a portion of prot-dependent compensation and other expenses not allocated to the operating groups; divested businesses andinitiatives; the resultsand of seed businesses that support our acquisition-related costs, including amortization and any impairment of acquisition-related intangibles and goodwill.
o v e r v I e w
3 Letter From Our CEO overvIew
5 Cpa Pl
Intel Worldwide Operations
9 Strategy and Management Approach GovernAnCe And eConomIC fACtors
Ireland
20 Financial Performance and Economic Impac t Impact
Oregon
25 Governance, Ethics, and Public Policy Polic y
Chengdu
Massachusetts
Dalian
Arizona New Mexico
envIronmentAL fACtors
Vietnam
Costa Rica
32 32 Environment Environment
Penang, Kulim Israel
soCIAL fACtors
58 58 Workplace Workplace 79 79 Supply Supply Chain Chain 92 Contributions to Society Societ y APPendIx
11 1 11 About This Report/Approach to Assurance Assurance
Wafer Fab
Assembly/Test
thi ap h h lcai Il’ a abicai acilii (ab) a ably a acilii a h l.
112 1 12 GRI GRI Content Index Index 119 1 19 UN Global Compact— Communication on Progress Progress
Ci ih m tha 50 eply1 Lcai Argentina Belgium
OS, SM
60
Brazil
OS, SM
Canada
R, SD, SM
China
A, C, F 2, OS, R, SD, SM
7,302
Costa Rica
A , OS
2,701
France
C, OS, SM
Germany Hong Kong India
OS, R, SD, SM
Ireland
F, L, OS, R, SD, SM
Israel
C, F, OS, R, SD, SM
5,696
Japan
OS, R, SD, SM
Lcai
Aciii
As of December 31, 2010.
South Korea Malaysia
A , L , SM , SY
9,109
147
Mexico
C, OS, R, SM
541
108
Netherlands
L
178
Poland
OS, R , SM
527
Russia
OS, R, SD, SM
923
226
Singapore
OS, SM
150
C, R, SD, SM
422
Spain
R , SM
76
OS, SM
175
Sweden
R , SM
58
2,614
Taiwan
OS, R , SM
553
2,531
United Kingdom
C , OS, SM
738
United States
A, C, F, L, OS, R, SD, SM
Vietnam
A
525
2
Our wafer fabrication facility in Dalian, China and our assembly and test facility in Vietnam both began operations in 2010.
2
Il i haqa i saa Claa, Caliia a icpa i h a dlaa. w ha 300 acilii lca i ha 50 ci. Back
Next
Previous View
eply
SD, SM
123
43,759 500
A Assembly and Test C Communications f Fabrication L Logistics os Other Support r Research and Development sd Sof tware Design sm Sales and Marketing sY Systems Manufacturing 1
8
eply 179
Access the Report Builder 2010 2010 Corporate Responsibility Report www.intel.com/go/responsibility
Aciii SD, SM
o v e r v I e w
3 Letter From Our CEO overvIew
5 Corporate Prole 9 sagy a maag Appach An Integrated, Strategic Approach Management and Decision-Making Stakeholder Engagement Sustainability Trends: Key Challenges and Opportunities Performance Summary Corporate Responsibility Goal Summary Awards and Recognitions GovernAnCe And eConomIC fACtors
20 Financial Performance and Economic Impact Impac t 25 Governance, Ethics, and Public Policy Polic y
Strategy and Strategy a nd Management Approach At Intel, corporate responsibility is not separate from our business; it is a core part of our global strategy and helps us create long-term business value. Our approach to corporate responsibility is rooted in our unwavering commitment to ethics, transparency, collaboration, and innovation.
1
2 3
m b iag.
envIronmentAL fACtors
32 32 Environment Environment soCIAL fACtors
58 58 Workplace Workplace 79 79 Supply Supply Chain Chain 92 Contributions to Society Societ y APPendIx
11 1 11 About This Report/Approach to Assurance Assurance
Ky Cpa rpibiliy Lik
112 1 12 GRI GRI Content Index Index 119 1 19 UN Global Compact— Communication on Progress Progress
Access the Report Builder 2010 2010 Corporate Responsibility Report www.intel.com/go/responsibility 9 Back
Next
Previous View
10
80
3
Number of corporate
Awards and recognitions
Number of years that we
responsibi responsibility reports Intel has lity published
received for our lity corporate responsibility responsibi performance in 2010
have linked acompensation portion of every employee’s to environmental environmen tal metrics
>
Corporate Responsibility at Intel Intel Values Awards and Recognitions UN Global Compact Communication on Progress
o v e r v I e w
3 Letter From Our CEO overvIew
5 Corporate Prole 9 sagy a maag Appach > An Integrated, Strategic Approach Management and Decision-Making Stakeholder Engagement Sustainability Trends: Key Challenges and Opportunities Performance Summary Corporate Responsibility Goal Summary Awards and Recognitions GovernAnCe And eConomIC fACtors
20 Financial Performance and Economic Impact Impac t 25 Governance, Ethics, and Public Policy Polic y envIronmentAL fACtors
32 32 Environment Environment soCIAL fACtors
58 58 Workplace Workplace 92 Contributions to Society Societ y APPendIx
11 1 11 About This Report/Approach to Assurance Assurance 112 1 12 GRI GRI Content Index Index 119 1 19 UN Global Compact— Communication on Progress Progress
Access the Report Builder 2010 2010 Corporate Responsibility Report www.intel.com/go/responsibility 10
By incorporating corporate responsibility into our strategy and objectives, we manage our business more effectively and identify ways to apply our technology and expertise to benet the environment and society and create shared value. Our focus on responsible business practices helps us mitigate risks, reduce costs, protect brand value, and identify new market opportunities. For decades, the backbone of our corporate culture has been our Intel Values:: Customer Orientation, Discipline, Quality, Risk Taking, Great Place to Values Work, and Results Orientation. These values dene who we are and how we act as employees and as a company. They move us forward toward common goals—in both business and corporate responsibility. We are committed to operating with transparency, as it holds us accountable and encourages two-way dialogue with our employees and other stakeholders. As highlighted throughout this report, we focus on building relationships and partnerships with external organizations to help improve our performance and increase the impact of our programs and initiatives.
o Glbal sagy
79 79 Supply Supply Chain Chain
Back
An Integrated, Strategic Approach
Next
Previous View
Il’ vii a Glbal sagy Our vision is to create and extend computing technology to connect and enrich the lives of every person on earth, by focusing on the following key strategic objectives:
• Grow the PC and data center center business with new users and uses. Extend Intel’s PC platform leadership and develop exciting innovations to deliver new user experiences; and lead the transform ation to open data centers and cloud computing. • Extend Intel solutions into adjacent markets. markets. Transform the embedded industry with Intel® architecture (IA) in new market segments; and launch and ramp IA solutions in smartphones, tablets, smart TVs, and vehicles. • Create a continuum continuum of personal computing. Expand IA differentiation with new capabilities across devices; excite leading software developers to create the best user experiences and applications on IA ; and deliver new usage models with multi-communications connectivity. • Care for our people and the planet, and inspire inspire the next generation. Cultivate a workplace where employees can thrive both on the job and in their communities; develop technology solutions to address major global problems while reducing our environmental impact; and accelerate education transformation worldwide through technology, program, and policy leadership. sic 2008, i claiy a c glbal agy, Il la ca a -pag cpa agy c. th agy a pa i 2010, a cpa pibiliy i agai a ky cp appach.
Our vision is to create and extend computing technology to connect and enrich the lives of every person on earth. The number and variety of devices connected to the Internet are growing, and computing is becoming an increasingly personal experience. End users value consistency across devices that connect seamlessly and effortlessly to the Internet and to each other. We will help to enable this experience by innovating around three pillars of computing: energy-efcient performance, connectivity, and security. To meet these objectives, we are using our core assets: our silicon and process technology, our architecture and platforms, our global presence, our strong relationships across the industry, and our brand recognition. We rolled out the 2010 update of our vision and strategy for our employees through a campaign that included videos from our senior leaders, training materials, and intranet communications.
Frameworks such as the United Nations Millennium Development Goals (MDGs) help inform our corporate responsibility strategy and approach. (MDGs) help While we keep all of the MDGs in mind, we focus on two areas where we believe Intel is especially well suited to play a transformative role: education quality and access (especially for girls and women) and environmental sustainability. We believe that our technology can play a signicant role in improving education, and that we can combine information and communications technology (ICT) with our experience in environmental management to help improve energy efciency and address critical challenges such as climate change. Other frameworks also inform our thinking on corporate responsibility. Intel is a member of the United Nations Global Compact, and our Human Rights Principles Compact, Principles reference reference external human rights and International Labour Organization standards. standards .
o v e r v I e w
3 Letter From Our CEO overvIew
5 Corporate Prole 9 sagy a maag Appach An Integrated, Strategic Approach > Management and Decision-Making Stakeholder Engagement Sustainability Trends: Key Challenges and Opportunities Performance Summary Corporate Responsibility Goal Summary Awards and Recognitions GovernAnCe And eConomIC fACtors
20 Financial Performance and Economic Impact Impac t 25 Governance, Ethics, and Public Policy Polic y
Management and Decision-Making At Intel, we never view corporate responsibility and sustainability as “nished”; we maintain a focus on continuous improvement, taking steps each year to further integrate these concepts into our decision-making, corporate culture, and compensation practices. Intel’s Board of Directors—specically the Board’s Corporate Governance and Nominating Committee—provides oversight for corporate responsibility and sustainability issues at Intel. Our global Corporate Responsibility Ofce acts as an internal business advisor to a number of groups and cross-functional Management Review Committees (MRCs), which manage corporate responsibility and sustainability activities across the organization. Cpa rpibiliy maag sc CEO and Board-Level Oversight
envIronmentAL fACtors
32 32 Environment Environment soCIAL fACtors
58 58 Workplace Workplace 79 79 Supply Supply Chain Chain 92 Contributions to Society Societ y
Management Review Committees (MRCs)
We have engaged in a number of planning sessions and have also discussed this topic externally with investors and research organizations. Working with a team from our corporate nance organization, we developed a framework and supporting nance tools to better assess how corporate responsibility factors create business value and to further integrate these factors into our decision-making. Our focus on designing products with improved energy-efcient performance helps us meet new customer needs and indentify market expansion opportunities; our investments in energy efciency in our operations help us reduce our emissions and energy costs; and our training, diversity, and benets programs enable us to attract and retain a talented workforce. nteg egra rate te nt
a ue ra rame mewo worr
Risk Management
MRCs bring together senior executives from across the company to review performance and set strategy in specic areas. For example, our Corporate Responsibility MRC reviews emerging issues across a
Operations
range of focus areas, and our Eco-MRC reviews Intel’s approach to environmental management.
APPendIx
11 1 11 About This Report/Approach to Assurance Assurance 112 1 12 GRI GRI Content Index Index 119 1 19 UN Global Compact— Communication on Progress Progress
Access the Report Builder 2010 2010 Corporate Responsibility Report www.intel.com/go/responsibility 11 Back
The Board of Directors’ Corporate Governance and Nominating Committee receives briengs from our Corporate Responsibility Ofce twice a year, in addition to updates on specic corporate responsibility issues as needed. Our CEO receives regular corporate responsibility updates from executive management.
We have long believed that a strategic and integrated approach to corporate responsibility and sustainability results in clear benets for both our company and our stakeholders. In recent years, investors have been increasingly interested in the connection between corporate responsibility performance and the creation of business value.
Next
Previous View
Business Group and Cross-Functional Teams
Multiple business groups have dedicated teams that address corporate responsibility issues within their organizations, helping to develop plans and set goals in support of Intel’s overall strategy and objectives. Those groups include, but are n ot limited to, Environmental Health and Safety, Eco-T Eco-Technology echnology Program Ofce, Ethics and Compliance Program Ofce, Corporate Affairs, Global Public Policy, Human Resources, Corporate Diversity, Supply Chain, and Information Technology.. In addition, cross-functional teams Technology coordinate efforts that span business groups. For example, our Eco -Stakeholder -Stakeholder Council brin gs together representatives from across Intel to develop clear and consistent strategies for improving our environmental performance and engaging employees.
Brand
Revenue
License to Operate & Governance • Regulatory risk (i.e., environmen environmental) tal) • Community engagement • Supply chain responsibility Cost Savings & Continuous Improvements • Operational efficiency • Management quality • Employee engagement Reputation & Goodwill • Differentiation Differentiation • Trusted partner • Goodwill Growth & Innovation • Market expansion • Product innovation • New customer needs
Igaig cpa pibiliy a aiabiliy i bi a ciiakig ca al Il i ai ay, a i hlp : c ik a pc lic pa; ip h cicy a ci pai; pc a bil ba al; a i gh hgh iai a iicai ak ppii. w ill ci hi ak, hich a ba a b al ak, iclig mcKiy a B Cllg C Cpa Ciizhip.
Back
Next
Previous View
o v e r v I e w
3 Letter From Our CEO overvIew
5 Corporate Prole 9 sagy a maag Appach An Integrated, Strategic Approach Management and Decision-Making > Stakeholder Engagement Sustainability Trends: Key Challenges and Opportunities Performance Summary Corporate Responsibility Goal Summary Awards and Recognitions GovernAnCe And eConomIC fACtors
20 Financial Performance and Economic Impact Impac t 25 Governance, Ethics, and Public Policy Polic y envIronmentAL fACtors
32 32 Environment Environment soCIAL fACtors
Stakeholder Engagement We derive signicant value from our diverse stakeholders and maintain formal management systems to engage with, listen to, and learn from them. We take their feedback seriously, and, when appropriate and relevant to our business, incorporate it into our thinking and planning. We prioritize our stakeholders and their concerns by looking at both the relevance of the stakeholder’s relationship to our business and the importance of the issue being raised. We evaluate our community programs based on local input, and we work to adapt our reporting methodology and the content of this report to meet the needs of our stakeholders. We have developed a number of tools and processes that provide valuable, ongoing feedback on our performance and strategy. In addition to faceto-face meetings, we generate discussion through web tools and social media. We maintain an e-mail account on account on our Corporate Responsibility web site that enables stakeholders to share their issues, concerns, and comments directly with members of our corporate responsibility team. Through this account, we receive and respond to hundreds of messages each year on a wide variety of topics.
58 58 Workplace Workplace 79 79 Supply Supply Chain Chain 92 Contributions to Society Societ y APPendIx
11 1 11 About This Report/Approach to Assurance Assurance 112 1 12 GRI GRI Content Index Index 119 1 19 UN Global Compact— Communication on Progress Progress
Access the Report Builder 2010 2010 Corporate Responsibility Report www.intel.com/go/responsibility 12
In addition, we have an external CSR@Intel blog, blog, where members of our corporate responsibility team and leaders across Intel discuss their views and opinions, and receive and respond to comments made by other blog participants. In 2010, we continued to expand our use of other social media channels, such as Twitter, Twitter, to reach new audiences with information on our corporate responsibility performance.
We also held a stakeholder panel to gain input for the development of our 2020 environmental goals. This session, convened by Business for Social Responsibility, included investors, peer companies, and representatives from non-governmental organizations. Priority issues identied in this session included: water, climate change and energy conservation, transparency and reporting, supply chain responsibility, and using Intel technology to address environmental challenges. Feedback from these meetings has informed improvements in our reporting and goal-planning processes. We work with community stakeholders to consider the impact of our operations at all phases: entering, operating, and exiting. When entering a community, we work with third parties to conduct needs assessment studies to prioritize our community engagement activities. We also begin working with community organizations to develop programs and initiatives prior to commencing operations. When making the difcult decision to close a facility, we try to minimize the impacts on employees and the local community by collaborating with local ofcials and providing severance packages and job search search support for employe employees. es. During our operating phase, we work to build relationships with local stakeholders through informal meetings, community advisory panels (CAPs), working groups, and community perception surveys (usually completed by third parties). CAP members provide constructive input on a broad range of issues, such as education, environmental impact, health and safety, and emergency response and management.
For more than 10 years, we have completed an annual “SRI road trip” to meet with leading environmental, social, and governance research rms and socially responsible investors (SRIs) to review our Corporate Responsibility Reports, gain a better understanding of emerging issues, help set priorities, and gather feedback on our performance. In 2010, we
For example, the Intel New Mexico Community Environmental Working Group (CEWG) meets monthly to discuss concerns about Intel’s environGroup (CEWG) mental impact. The CEWG is chaired by John Bartlit, chairman of New Mexico Citizens for Clean Air and Water, and is facilitated by a third party. CEWG meeting minutes and agendas for the last six years are posted on the CEWG web CEWG web site. In 2010, we also conducted third-party-administered community focus groups and surveys to understand the concerns and priorities of the local community. In early 2011, we launched a pilot in New Mexico for a new transparency web site, “Explore “ Explore Intel Intel,”,” which provides
met with representatives of more than 20 rms in three cities. Key discussion topics included: water conservation, political accountability, conict minerals and supply chain responsibility, and reporting best practices.
real-time disclosure, monitoring, and videos for the local community. The web site also features a blog and e-mail account where community members can engage with our environmental managers.
Back
Next
Previous View
o v e r v I e w
3 Letter From Our CEO overvIew
5 Corporate Prole 9 sagy a maag Appach An Integrated, Strategic Approach
sakhl egag Aciii (continued) sakhl
B a rl
Open-doorr policy designed Open-doo designed to give eemploy mployees ees access access to m managem anagement ent aatt all leevels. vels.
Multiple ple processes processes su support pport dirrect ect ccommunicat ommunication ion up and down the organization. OHS results allow us to track our performance in key areas and identify gaps on a regular cadence. For more detail, see the Workplace section Workplace section of this report.
eply
Management and Decision-Making
Employee surveys, including o ur Organizational Health Survey (OHS).
> Stakeholder Engagement Sustainability Trends: Key Challenges and Opportunities Performance Summary Corporate Responsibility Goal Summary Awards and Recognitions
tl a Pc
Circuit News, our daily intranet “newspaper,” which includes direct feedback tools. Quarterly Business Update Meetings for all employees, and Executive Open Forums and webcasts that include Q&A sessions.
C Customer Excellence Program (CEP), a struc tured program that uses a web-based survey administered by a third-party market research rm to obtain and prioritize customer feedback on the quality of Intel’s products and services. A portion of Intel employees’ annual variable compensation is tied to CEP results.
GovernAnCe And eConomIC fACtors
20 Financial Performance and Economic Impact Impac t
Consumer Support web Support web site.
25 Governance, Ethics, and Public Policy Polic y
External blogs, such as Technology@Intel, with discussions of interest to customers.
envIronmentAL fACtors
sppli
32 32 Environment Environment
Intel’s Supplier Site. Site.
soCIAL fACtors
58 58 Workplace Workplace
Intel Supplier Day conference, which brings together hundreds of our top suppliers for training.
79 79 Supply Supply Chain Chain
Participation in the Electronic Industry Citizenship Coalition (EICC).
92 Contributions to Society Societ y APPendIx
11 1 11 About This Report/Approach to Assurance Assurance 112 1 12 GRI GRI Content Index Index 119 1 19 UN Global Compact— Communication on Progress Progress
Objective customer feedback enables us to identify areas for improvement. In 2010, employees received two additional days of pay based on the high customer satisfaction levels under the CEP. For more information, refer to the Intel Quality System Handbook. Handbook.
Setting consistent expectations for our suppliers reduces risk and improves efciency across our supply chain. In this year’s report, based on stakeholder feedback and benchmarking research, we have provided additional detail in the Supply Chain Chain section.
Cii Community advisory panels and working groups, two-way forums where community members and Intel representat representatives ives collaborate to address community issues and concerns. Community perception surveys and needs assessments conducted as needed. Intel Community web Community web site, which includes feedback mechanisms.
Maintaining an open dialogue with our communities has allowed us to build positive and constructive relationships at the local level. For more detail on our community engagement activities, see the Contributions to Society Society section section of this report.
Placement of Intel employees on local nonprot boards and commissions.
Access the Report Builder 2010 2010 Corporate Responsibility Report www.intel.com/go/responsibility 13
Extensive working relationships with educators and educational institutions worldwide, and third-party evaluations of our education programs. (continues on next page)
Back
Next
Previous View
o v e r v I e w
3 Letter From Our CEO overvIew
5 Corporate Prole 9 sagy a maag Appach An Integrated, Strategic Approach
sakhl egag Aciii (continued) tl a Pc
B a rl
Management and Decision-Making
Regular face-to-face meetings with social responsibility-oriented fund managers and analysts.
> Stakeholder Engagement Sustainability Trends: Key Challenges and Opportunities Performance Summary
Timely interaction with investors and research rms through e-mail exchanges, conference calls, and detailed investor surveys.
Feedback and benchmark data drive improved performance and help us identify emerging issues and concerns. In response to feedback from these groups in 2010, we adopted a new Intel Water Policy.. We amended the charter Policy charter of of the Board’s Corporate Governance and Nominating Committee (which already included reference to corporate responsibility) to include language clarifying that the committee is responsible for reviewing sustainability issues.
Corporate Responsibility Goal Summary Awards and Recognitions GovernAnCe And eConomIC fACtors
20 Financial Performance and Economic Impact Impac t 25 Governance, Ethics, and Public Policy Polic y
sakhl I
Online stockholder forum, forum , launched in 2009, featuring investor surveys on a range of issues, an d information on corporate responsibility. Intel Corporate Responsibility e-mail account, account, Intel Investor Relations e-mail account, and account, and CSR@Intel blog blog..
G a Plicy mak Active engagement in policy and legislative efforts worldwide through individual discussions and exchanges with joint industry and government committees. Intel Global Public Policy and Intel Corporate Affairs working with policy makers. Policy@Intel web Policy@Intel web site and blog.
envIronmentAL fACtors
32 32 Environment Environment soCIAL fACtors
58 58 Workplace Workplace 79 79 Supply Supply Chain Chain 92 Contributions to Society Societ y APPendIx
11 1 11 About This Report/Approach to Assurance Assurance 112 1 12 GRI GRI Content Index Index 119 1 19 UN Global Compact— Communication on Progress Progress
Access the Report Builder 2010 2010 Corporate Responsibility Report www.intel.com/go/responsibility 14
Our efforts in policy development foster credible, trustworthy relationships; strengthen regard for Intel as a valued corporate citizen; and create a supportive public policy environment. For more information, see “Public “ Public Policy and Advocacy Advocacy”” in this report.
n-Gal ogaizai (nGo) Is Issue suess meet meetin ings, gs, forma formall dial a loogues gues and pr proj oject ects, s, and and m mul ulti ti-sect - sector or effo efforts rts..
Inte Intel’l’s inte intera ract ction ionss with t h NGO NGOss promo promote te mut mutua uall understanding on environmental issues, regional education priorities, technology options and solutions for developing countries, supply chain management issues, and other topics. Details on our collaborations with NGOs in our main corporate responsibility focus areas are covered in other sections of this report.
Back
Next
Previous View
o v e r v I e w
3 Letter From Our CEO overvIew
5 Corporate Prole 9 sagy a maag Appach An Integrated, Strategic Approach Management and Decision-Making > Stakeholder Engagement Sustainability Trends: Key Challenges and Opportunities Performance Summary Corporate Responsibility Goal Summary
Corporate Responsibility Materiality Analysis
Identify
Prioritize
Identify issues from a wide range of stakeholders and sources.
Use a consistent set of filters to determine the significance of each issue and develop a list of the most material issues.
Primary Sources
Issues
Key Criteria
• Employee blogs and forums
• Climate change
• Business continuity
• Water conservation
• Customer concerns
• Air emissions/quality
• Impact to brand/ reputation
• Corporate Responsibility web site e-mails
• Education
• Results of community advisory panels and community perception surveys
• Stock price performance
• Fair compensation
• HIV/AIDS
• Alignment with Intel’s business strategies
• Meetings/feedback sessions with mainstream and socially responsible
• Antitrust • Health concerns related to wireless technology
• Ability to attract and retain talent
20 Financial Performance and Economic Impact Impac t
investors • Proxy resolution negotiations
• Energy
25 Governance, Ethics, and Public Policy Polic y
• Ethics and Compliance Oversight Committee
GovernAnCe And eConomIC fACtors
envIronmentAL fACtors
32 32 Environment Environment soCIAL fACtors
58 58 Workplace Workplace 79 79 Supply Supply Chain Chain 92 Contributions to Society Societ y APPendIx
11 1 11 About This Report/Approach to Assurance Assurance 112 1 12 GRI GRI Content Index Index 119 1 19 UN Global Compact— Communication on Progress Progress
• Nanomaterials • Labor unions • Materials restrictions
• Strategic chemical review process
• Employee health
• Community relations
• Political contributions
• Corporate responsibility/sustainability conferences
• Taxes/incentives
• Market research on reputation issues • Meetings with government officials • Review of external standards • Participation in industry working groups
• Privacy
• Diversity • E-waste • EHS/human rights in the supply chain
• Regulatory impacts
This materiality matrix illustrates the topics that we believe are of greatest interest to our stakeholders stakeholders,, who want to make informed decisions about Intel’s environmental, social, and economic performance.
Water Use
15
EnergyEfficient
s r e d l o h e k a t S e l p i t l u M o t e c n a t r o p m I
Recycling and E-waste
Medium Human Rights in Supply Chain
HIV/AIDS
Supporting Education and Technology Access
Worker Safety
Diversity Political Contributions Supporting Local Communities
Taxes
Low
Medium
High
Impact on Intel’s Business
• Extractives sourcing
Environment
Social
Economic
concerns • Human right to water
Review Embed the process in internal decision-making and external review. Internal Review
External Review
Decisions
• Board of Directors and Corporate Responsibility Management Review Committee (MRC) reviews
• Outreach to socially responsible investors
• Set new performance goals
• Business group MRC/planning
2010 2010 Corporate Responsibility Report www.intel.com/go/responsibility
Financial/ Economic Health
Products
• Corporate strategic discussions
Access the Report Builder
Reducing Energy Use
High
• Applicability to multiple regions
• Impact on the community
Awards and Recognitions
Materiality Matrix
• Corporate Responsibility Report review • SustainAbility participation and benchmarking
• Initiate new projects or develop new policy • Communicate with stakeholders • Include i n Corporate Responsibility Responsibility Report, site/local reports, Corporate Responsibility web site
w ha h saiabiliy maialiy fak lp by h ach AccAbiliy cpa pibiliy aialiy, bh hi p a agy lp. (n ha “aialiy” i hi c acial aialiy.)
Back
Next
Previous View
o v e r v I e w
3 Letter From Our CEO overvIew
5 Corporate Prole 9 sagy a maag Appach An Integrated, Strategic Approach Management and Decision-Making Stakeholder Engagement > Sustainability Trends: Key Challenges and Opportunities Performance Summary Corporate Responsibility Goal Summary Awards and Recognitions GovernAnCe And eConomIC fACtors
20 Financial Performance and Economic Impact Impac t 25 Governance, Ethics, and Public Policy Polic y envIronmentAL fACtors
32 32 Environment Environment soCIAL fACtors
58 58 Workplace Workplace 79 79 Supply Supply Chain Chain 92 Contributions to Society Societ y APPendIx
11 1 11 About This Report/Approach to Assurance Assurance 112 1 12 GRI GRI Content Index Index 119 1 19 UN Global Compact— Communication on Progress Progress
Sustainability Trends: Key Challenges and Opportunities Climate change, water, education, labor standards, and supply chain responsibility are among the major sustainability areas that present challenges and opportunities for Intel.
Clia Chag a egy ecicy As impact to climate and energy have become major focus areas for businesses and governments, we have taken steps to reduce absolute emissions from our operations—even as we grow—and to address the climate change impact of our products. We continue to work on lowering our normalized and absolute emissions, with the goal of a 20% reduction in absolute emissions by 2012 from 2007 levels, and improving the energyefcient performance of our products. Worldwide efforts to reduce emissions and address climate change also present potential market opportunities for Intel technologies, including smart grids and home energy management systems.
wa u Sustainable water management is a key focus at Intel and is increasingly important to our external stakeholders. Intel has developed innovative water conservation solutions that we share with local governments and other companies. Still, we continue to face challenges in reducing our water use as our manufacturing processes become more complex. We have expanded our disclosure on our water use and conservation efforts, and continue to engage with external organizations to understand emerging best practices. In addition, in early 2010 we adopted a new water policy policy that reinforces our commitment to conservation and to the respect for the human right to water.
ecai taai a h digial dii Access the Report Builder 2010 2010 Corporate Responsibility Report www.intel.com/go/responsibility 16
Global economic health and Intel’s success depend on young people having access to a quality education and technology. As a leading technology company, we believe that we can help governments around the world achieve their economic development and educational goals by effectively integrating technology into their programs and strategies.
rcyclig a elcic wa In 2010, we continued to recycle a signicant percentage (over 75%) of the solid and chemical waste generated in our operations. However, in the past three years, our chemical waste on a per chip basis has increased, despite our reduction and recycling efforts. In recent years, companies have also been increasing their efforts to manage electronic waste (e-waste). Intel’s products are sold primarily to original equipment manufacturers (OEMs) and other companies that produce nished products. While our components are not typically subject to recycling or e-waste laws, we work with OEMs, retailers, and others to identify shared solutions for end-of-life product management and address this challenge.
Lab saa a spply Chai rpibiliy In our industry and others, companies are taking a more active role in pushing for improvements in the labor and safety practices of their suppliers. We have engaged with other companies to promote collaboration and shared processes for accountability in the electronics supply chain. We have also taken steps in the past year to promote transparency and accountability account ability in our supply chain, such as disclosing our top suppliers, increasing the number of completed assessments and audits, and proactively working with our gold, tantalum, tin, and tungsten suppliers to address signicant challenges related to the traceability of conict metals in the Democratic Republic of the Congo.
wkc diiy In recent years, we have signicantly improved the diversity of our workforce in a number of key categories, including increasing the number of women at the vice president level by 24% since 2004. The overall percentage of women in our global workforce, however, has remained relatively at over the past ve years. We continue to work to increase the number of under-represented minorities and technical females in our workforce— especially at management and senior leadership levels—through initiatives such as global education and scholarship programs aimed at building the talent pipeline in engineering and technical disciplines.
Back
Next
Previous View
o v e r v I e w
3 Letter From Our CEO overvIew
5 Corporate Prole 9 sagy a maag Appach An Integrated, Strategic Approach
Performance Summary The following table provides a high-level summary of our key economic, environmental, and social indicators. Click on the headings in the table for details that appear in other sections of this report. Ky Iica
Decision-Making Management and
ecic ecic
2 010 20
2009
2008
2007
2006
Net revenue (dollars in billions)
$43.6
$35.1
$37.6
$38.3
$35.4
Net income (dollars in billions)
$11.5
$4.4
$5.3
$7.0
$5.0
> Performance Summary
Provision for taxes (dollars in billions)
$4.6
$1.3
$2.4
$2.2
$2.0
Corporate Responsibility Goal Summary
Research and development spending (dollars in billions)
$6.6
$5.7
$5.7
$5.8
$5.9
Awards and Recognitions
Capital investments (dollars in billions)
$5.2
$4.5
$5.2
$5.0
$5.9
2.12
2.05
2.75
3.85
4.02
Stakeholder Engagement Sustainability Trends: Key Challenges and Opportunities
ei
GovernAnCe And eConomIC fACtors
Greenhouse gas emissions (million metric tons of CO 2 equivalent)1
20 Financial Performance and Economic Impact Impac t 25 Governance, Ethics, and Public Policy Polic y envIronmentAL fACtors
32 32 Environment Environment soCIAL fACtors
58 58 Workplace Workplace
Energy use (million kWh—includes electricity, gas, and d iesel)
5,192
5,113
5,649
5,757
5,793
Total water withdrawn (millions of gallons)
8,152
7,923
7,713
7,517
7,651
Chemical waste generated (tons)
31,265
24,665
28,486
23,260
29,951
Chemical waste recycled/reused
75%
71%
84%
87%
64%
Solid waste generated (tons)
51,345
4 4,484
83,822
58,746
60,917
Solid waste recycled/reused
83%
80%
88%
80%
74%
82,500
79,800
83,900
86,300
94,100
28%
28%
29%
29%
30%
scial
79 79 Supply Supply Chain Chain
Workplace
92 Contributions to Society Societ y
Employees at year end Women in global workforce
APPendIx
11 1 11 About This Report/Approach to Assurance Assurance
Investments in training (dollars in millions)
$254
$267
$314
$249
$380
Safety—recordable rate2
0.56
0.48
0.46
0.48
0.43
112 1 12 GRI GRI Content Index Index
Safety—days away case rate2
0.11
0.11
0.12
0.13
0.11
119 1 19 UN Global Compact— Communication on Progress Progress
Organizational Health Survey scores—"proud to work for Intel"
85%
82%
83%
75%
—3
Supply Chain
Supplier self-assessments and audits completed
756
574
358
—3
—3
Society
Employee volunteerism rate
48%
38%
54%
38%
38%
$126
$100
$ $102 102
$109
$96
0.8% 9
1.8% 7
1.3% 6
1.2% 5
1.4% 3.9
Worldwide charitable giving (dollars in millions)
4
Access the Report Builder 2010 2010 Corporate Responsibility Report www.intel.com/go/responsibility
Charitable giving as percentage of pre-tax net income Teachers trained through Intel® Teach Program (millions, cumulative) 2 Rate based on 100 employees working full time for one year. Including renewable energy credit purchases. Includes total giving (case and in-kind) from Intel Corporation and the Intel Foundation.
1
4
17
Information not available for this year.
3
Back
Next
Previous View
o v e r v I e w
3 Letter From Our CEO overvIew
5 Corporate Prole 9 sagy a maag Appach An Integrated, Strategic Approach Management and Decision-Making Stakeholder Engagement Sustainability Trends: Key Challenges and Opportunities
Corporate Responsibility Goal Summary Based on feedback from stakeholders, we have incorporated the discussion of our performance to goals and future goals into each relevant section of this report. The following table provides a high-level summary of our company-wide goals in the key corporate responsibility areas. Click on the headings in the table for more detail on our goals in other sections of this report. Gal rp sci
2010 Pac Gal
Gal 2011 a By
Environment
At the beginning of 2008, we set new ve-year goals related to global-warming emissions, energy, water use, waste reduction, recycling, and product energy efciency. While we have achieved signicant reductions in emissions and energy, we have faced challenges in areas such as water conservation and chemical waste. We are at risk for not meeting our chemical waste generation goal.
In 2011, we will continue to work toward achieving our 2012 environmental goals, with a targeted focus on energy and water conservation, and identifying n ew ways to reduce the generation of chemical waste.
Workplace
We continued to improve our perform ance in organizational health, as measured by our employee Organizational Health Survey. We partially achieved our 2010 diversity goal. Although the overall percentage of women in our global work force remained at, we saw gains in the number of women in senior leadership roles. Our safety performance continued to be world-class compared to industry benchmarks. However, we did not meet our aggressive goal for ou r recordable rate.
We will continue to drive key improvements in diversity and hire at full availability for technical under-represented minorities and women. We will also focus on improving our organizational health as measured by our employee Organizational Health Survey. In the area of workplace safety, we will continue to work toward improving early reporting of injuries and drive further reductions in our recordable rate.
Supply Chain
We made signicant progress in integrating corporate responsibility factors into our supplier management systems. We met our supplier diversity goal and increased the number of risk assessments and third-party supplier audits completed. We made signicant progress on our efforts to address the issue of conict minerals in
In 2011, 2011, we will continue to work to improve assessment an d audit processes and have committed to complete a minimum of 50 audits in 2011. 2011. We will also continue to focus on supplier diversity and further integrating corporate responsibility factors into our processes and systems.
the supply chain. Our global volunteer rate exceeded our 40% goal, at 48%. The total number of volunteer hours remained strong, at over 1 million hours, and we saw an increase in our skills-based volunteer hours. We met our impact targets for the Intel® Teach Program and Intel® Learn Program, and expanded Intel’s reach and impact with the addition of the new Intel® Teach Elements curriculum. We also met our goal of completing 100,000 PC donations to jump-start education programs in developing markets.
We will deepen the impact of our Intel Involved program through a new engagement campaign called “I’m In.” F or 2011, 2011, we will continue our work to advance education transformation through strategic collaborations and development of technology solutions. We will also continue to expand our entrepreneurship programs and initiatives to improve education opportunities for girls and women, and promote social innovation by empowering people to us e technology to solve social programs.
Performance Summary > Corporate Responsibility Goal Summary Awards and Recognitions GovernAnCe And eConomIC fACtors
20 Financial Performance and Economic Impact Impac t 25 Governance, Ethics, and Public Policy Polic y envIronmentAL fACtors
32 32 Environment Environment soCIAL fACtors
58 58 Workplace Workplace 79 79 Supply Supply Chain Chain 92 Contributions to Society Societ y APPendIx
11 1 11 About This Report/Approach to Assurance Assurance 112 1 12 GRI GRI Content Index Index 119 1 19 UN Global Compact— Communication on Progress Progress
Access the Report Builder 2010 2010 Corporate Responsibility Report www.intel.com/go/responsibility 18
Society
Back
Next
Previous View
o v e r v I e w
3 Letter From Our CEO overvIew
5 Corporate Prole 9 sagy a maag Appach An Integrated, Strategic Approach Management and Decision-Making Stakeholder Engagement Sustainability Trends: Key Challenges and Opportunities
Awards and Recognitions Third-party recognition gives us valuable feedback on our programs and practices, and helps us drive continuous improvement over time. Below is a selection from more than 80 corporate responsibility awards and recognitions that Intel received in 2010. For more information, visit our Awards and Recognitions web Recognitions web site. 2010 slc Aa a rcgii oall Cpa rpibiliy
• • • • • • • • • •
Dow Jones Sustainability Indexes. Listed on North Americ a and World indexes (12th year) Corporate Knights. Global 100 Most Sustainable Corporations in the World (6th year) Fortune magazine. World’s Most Admired Companies (1st in CSR in our industry) and Blue Ribbon Companies lists CRD Analytics and Justmeans. Global 1000 Sustainable Performance Leaders (8th overall) FTSE Group. Listed on the FTSE4Good In dex (10th year) Covalence. Ethical Ranking 2010 (2nd overall) Corporate Responsibility magazine. 100 Best Corporate Citizens 2010 (2nd overall) (U.S.) Corporate Citizenship Committee. Five-Star Best Corporate Citizenship Award (China) MAALA Corporate Responsibility Index. Platinum rating (7th year) (Israel) 2010 Corporate Social Responsibility In dex (12th overall) (U.S.) Boston College and Reputation Institute. 2010
ei
• • • • •
2010 0 Top 500 Green Companies in America (5th overall) Newsweek. 201 U.S. EPA. A Green Power Partner of the Year (3rd consecutive year) (U.S.) Computerworld. Top IT Green Vendors 2010 (global) Korea Ministry of the Environment. Environmental Excellence Award International Charter. Committed to the Environment Award (global)
Bi/wkplac
• • • • • • • • • • • • •
Bloomberg Businessweek magazine. World’s Most Innovative Companies (12th overall) Fortune magazine. Best Companies to Work For 2010 (U.S.) Ten Employers in Argentina Great Place to Work (GPTW) Institute. Top Ten Hewitt Associates. Best Employers in Poland Epoca Magazine. Most Admired Companies in Brazil The Marker magazine. 50 Best Companies to Work For in Israel GPTW Institute and The Economic Times. India’s Best Companies to Work For 2010 Working Mother magazine. 100 Best Companies for Working Mothers (U.S.) Human Rights Campaign. Corporate Equality Index (8th year with perfect score) (U.S.) National Business Group on Health. Best Employers for Healthy Lifestyles–Platinum level (U.S.) National Insurance Institute. Preventico Award for Workplace Safety (Costa Rica) NISO/NISG Organizational Health and Safety Awards. Distinction Award (Ireland) AMR Research. Top 25 Supply Chains (global)
sciy
• • • •
2010 0 Engagement Award of Excellence (U.S.) Points of Light Institute. 201 Committee Encouraging Corporate Philanthropy. Chairman’s Award (U.S.) China Ministry of Education. Outstanding Contribution to China Educ ation Award (7th year) Public-Privatee Partnership Award (U.S.) National Governors Association. Public-Privat
•• • • • •
BolivarBest Medal Colombia Ministry of ofPhilanthropy Education. Simon Practices Award for CSR in Education Mexican Institute (CEMEFI). National Council for Youth. Recognition for Intel® Learn Program (Egypt) Vietnam Ministry of Education. Recognition Award for Intel® Teach Program Global View magazine. CSR Role Model Award in Education (Taiwan) Korea Economic Daily. Grand CSR Award (for Intel’s education programs)
Performance Summary Corporate Responsibility Goal Summary > Awards and Recognitions GovernAnCe And eConomIC fACtors
20 Financial Performance and Economic Impact Impac t 25 Governance, Ethics, and Public Policy Polic y envIronmentAL fACtors
32 32 Environment Environment soCIAL fACtors
58 58 Workplace Workplace 79 79 Supply Supply Chain Chain 92 Contributions to Society Societ y APPendIx
11 1 11 About This Report/Approach to Assurance Assurance 112 1 12 GRI GRI Content Index Index 119 1 19 UN Global Compact— Communication on Progress Progress
Access the Report Builder 2010 2010 Corporate Responsibility Report www.intel.com/go/responsibility 19
Back
Next
Previous View
G o v e r n A n C e
A n d
e C o n o m I C
f A C t o r s
3 Letter From Our CEO overvIew
5 Corporate Prole 9 Strategy and Management Approach GovernAnCe And eConomIC fACtors
20 fiacial Pac a ecic Ipac Ipac 201 2010 0 Financial Performance Performance Economic Impact 25 Governance, Ethics, and Public Policy Polic y envIronmentAL fACtors
32 32 Environment Environment
Financial Performance and Economic Impact Intel reported its best nancial results ever in 2010. Strong growth in the business and consumer PC market segments, the continued build-out of the data center, the leadership of our product portfolio, and improvements to our cost structure all contributed to making 2010 the most protable year in our history.
soCIAL fACtors
58 58 Workplace Workplace 79 Supply 79 Supply Chain Chain 92 Contributions to Society Societ y APPendIx
11 1 11 About This Report/Approach to Assurance Assurance m b iag.
112 1 12 GRI GRI Content Index Index 119 1 19 UN Global Compact— Communication on Progress Progress
1
2 3
Ky fiacial Pac a ecic Ipac Lik
43.6
80
Intel revenue in 2010
Percentage of
Number of Intel® Atom™
revenue from outside the Americas
processors shipped into netbook market segment as of year-end 2010
$
Access the Report Builder 2010 2010 Corporate Responsibility Report www.intel.com/go/responsibility 20
Billion
%
80
>
Million
Intel 2010 2010 Annual Report and Form 10-K Intel Investor Relations Intel® Products Technology Leadership
20 Back
Next
Previous View
G o v e r n A n C e
A n d
e C o n o m I C
f A C t o r s
3 Letter From Our CEO overvIew
5 Corporate Prole 9 Strategy and Management Approach GovernAnCe And eConomIC fACtors
20 fiacial Pac a ecic Ipac Ipac > 201 2010 0 Financial Performance Performance Economic Impact 25 Governance, Ethics, and Public Policy Polic y envIronmentAL fACtors
32 32 Environment Environment soCIAL fACtors
2010 Financial Performance 2010 was a record year for Intel. Broad-based demand for our products across all regions and market segments continued, contributing to revenue of $43.6 billion, up 24% compared to 2009. Operating income for 2010 rose to $15.6 billion, net income to $11.5 billion, and earnings per share to $2.01. Our continued focus on factory reuse and efciency drove costs down again in 2010, helping to increase our gross margin to a record 65%. The cash-generating power of our business was evident in 2010, with $16.7 billion of cash from operations. Our total dividend payout for the year was $3.5 billion.
58 58 Workplace Workplace
2010 marked the rst year in which more than 1 million PCs were sold per
79 Supply 79 Supply Chain Chain 92 Contributions to Society Societ y
day, and for the year the PC segment grew approximately 17% worldwide. Part of that growth is driven by the increasingly “personal” nature of PCs, which is causing a shift from one PC per household to one or more PCs per person in many mature markets. PC growth also continues at a strong pace in most emerging markets. As millions more people join the global online community, demand for high-performance servers continues to increase. In 2010, we delivered Intel® Xeon® processors and Intel® Itanium® processors that give servers signicantly higher performance as well as new reliability and security features, helping to boost our Data Center Group revenue
APPendIx
11 1 11 About This Report/Approach to Assurance Assurance 112 1 12 GRI GRI Content Index Index 119 1 19 UN Global Compact— Communication on Progress Progress
We are committed to investing in world-class technology development, particularly in the design and manufacture of integrated circuits. Our research and development (R&D) expenditures in 2010 were $6.6 billion, and our capital expenditures were $5.2 billion. Investments such as these help Intel maintain its position as the most advanced semiconductor manufacturer in the world. Net Revenue 43.6
40
38.8
s n o i l l i B n i
s r a l l o D
30
38.3
37.6
35.4
34.2
35.1
30.1 26.5 26.8
20
10
01
02
eograp rap c rea eog
03
0 04 4
own o
0 05 5
0 06 6
07
08
09
10
evenue ev enue
100
9%
35% over 2009. The computing landscape is changing. New categories of compute devices such as smartphones, smart TVs, tablets, in-vehicle systems, and more are connecting to the Internet and becoming more intelligent. Intel is aggressively pursuing opportunities to expand our business in new device categories with the Intel® Atom™ processor family. We closed 2010 with 1,700 design wins for embedded Intel Atom processors and over 4,900 total design engagements in the embedded market segment. Our products are also being designed into more than 35 tablets, many of which are
10%
80 Earnings Per Share Diluted 24%
10% 13%
21%
2.01 20%
2.00 t n e c r e P s r a l l o D
60
19% 1.50
41% 41 %
40
1.18 1.00
0.92 50%
0.86
20 0.50
57% 0.77
26%
Access the Report Builder 2010 2010 Corporate Responsibility Report www.intel.com/go/responsibility
expected to launch in 2011. In 2010, we also introduced nine products for the smart TV market segment, for televisions, Blu-ray* players, and set-top boxes. Past performance does not guarantee future results.
2000
Japan
2006
2005
Europe 2007
2008
2010
Americas 2009
20 10 Asia-Pacific
21 Back
Next
Previous View
G o v e r n A n C e
A n d
e C o n o m I C
f A C t o r s
3 Letter From Our CEO overvIew
5 Corporate Prole 9 Strategy and Management Approach
ute
Economic Impact
are
“2010 was a year for the record books. Our revenue, operating prot, net income, and gross margin were all the highest in Intel’s history. Growth
2.01
2.00
GovernAnCe And eConomIC fACtors
20 fiacial Pac a ecic Ipac Ipac > 201 2010 0 Financial Performance Performance
arnngs er
1.50
s r a l l o D
25 Governance, Ethics, and Public Policy Polic y
opportunities, ourinstrong product lineup, and our industry lead manufacturing process technology tech nology give me condence that 2011 will be even better. bet ter.”
1.18 1.00
0.92
0.86
0.77
0.50
Paul S. Otellini, President and Chief Executive Of cer
envIronmentAL fACtors
32 32 Environment Environment
2006
2007
2008
2009
2010
esea earr c a n es
eve ev e op opm m en en t
soCIAL fACtors
58 58 Workplace Workplace
6.6 6.0
v
79 Supply 79 Supply Chain Chain 92 Contributions to Society Societ y
en s
er
a re
11 1 11 About This Report/Approach to Assurance Assurance 112 1 12 GRI GRI Content Index Index
s n o
0.63
0.60 0.56
APPendIx
0.45
0.40 s r a l l o D
2006
2007
2008
5.7
s r a
2.0
o
0.20
2006
2007
2008
2009
2010
6.0
5.9 5.0
4.5
2010
16.0
15 s n o
5.2
2009
Income Before Taxes and Provision for Taxes
Capital Additions to Property, Plant and Equipment
Access the Report Builder
5.7
4.0
s r a l l o D
5.8
n
0.55
0.40
119 1 19 UN Global Compact— Communication on Progress Progress
s n o i l l i B n i
5.9
a
5.2
10
n s r a
4.5
9.2 7.7
7.1
5.7
5
4.6
o
2.0
2.2
2.4 1.3
3.0 2006 1.5
2007
Income Be Before Taxes
2008
2009
2010
Provision fo for Taxes
2010 2010 Corporate Responsibility Report www.intel.com/go/responsibility 2006
2007
2008
2009
2010
For more information on our nancial performance, products, customers, technologies, opportunities, and key challenges, see the Intel 2010 Annual Report and Form 10-K. 10-K.
22 Back
Next
Previous View
G o v e r n A n C e
A n d
e C o n o m I C
f A C t o r s
3 Letter From Our CEO overvIew
5 Corporate Prole 9 Strategy and Management Approach GovernAnCe And eConomIC fACtors
20 fiacial Pac a ecic Ipac Ipac 201 2010 0 Financial Performance Performance > Economic Impact 25 Governance, Ethics, and Public Policy Polic y envIronmentAL fACtors
32 32 Environment Environment soCIAL fACtors
58 58 Workplace Workplace 79 Supply 79 Supply Chain Chain 92 Contributions to Society Societ y APPendIx
11 1 11 About This Report/Approach to Assurance Assurance 112 1 12 GRI GRI Content Index Index 119 1 19 UN Global Compact— Communication on Progress Progress
Economic Impact Intel provides high-skill, high-paying jobs at sites around the world. We also impact economies through our sourcing activities, consumer spending by Intel employees, and tax revenue. In addition, the company makes sizable capital investments and provides leadership in public-private initiatives to spur economic growth and innovation.
Iig i h Iai ecy Even during the strained economic climate of the last few years, Intel has continued to invest, stimulating economic and job growth. In February 2009, we announced a $7 billion upgrade to our manufacturing facilities in Oregon, Arizona, and New Mexico—projects that are helping to maintain approximately 7,000 high-wage, high-skilled U.S. jobs while providing 4,000 contract jobs for technicians and construction workers. In 2010, we announced that we would spend an additional $6 billion to $8 billion over the next several years to bring next-generation manufacturing technology to several existing factories across the U.S. and to build a new development factory in Oregon. This investment will support approximately 6,000 to 8,000 additional U.S. construction jobs during the building phase, and will eventually add up to 1,000 Intel jobs. In February 2011, in conjunction with U.S. President Barack Obama’s visit to visit to our Oregon site, Intel President and CEO Paul Otellini announced additional Intel investments in the U.S., U.S. , including plans to hire 4,000 U.S. employees during 2011 and to build a new $5 billion high-volume manufacturing facility in Arizona. The Arizona project, scheduled for completion in 2013, will result in thousands of construction and full-time manufacturing manufacturing jobs. In conjunction with the announcement, President Obama named Otellini to serve on the President’s Council on Jobs and Competitiveness.
Access the Report Builder 2010 2010 Corporate Responsibility Report www.intel.com/go/responsibility
Intel’s global investment organization, Intel Capital—one of the largest venture capital organizations in the world—seeks out and invests in promising technology companies. Since 1991, Intel Capital has invested over $9.8 billion in more than 1,100 companies. In 2010, Intel Capital made 119
investments, for a total of about $327 million, with approximately 56% going to companies in the U.S. and Canada. With support from other corporations and venture capital rms, Intel is leading the Invest in America Alliance Alliance,, an initiative to support investment in U.S.-based, growth-oriented industries. As part of the alliance, launched in 2010, Intel and 17 other technology and corporate leaders have committed to increase their hiring of college graduates, a group whose unemployment rate has been signicantly higher than the national average. The Invest in America Alliance also includes a commitment from Intel Capital and 24 venture capital rms to invest $3.5 billion in U.S.-based technology companies over a two-year period. These investments include a $200 million Intel Capital Invest in America Technology Fund, which targets key innovation and growth segments, such as clean technology, information technology, and biotechnology. Intel Capital has already invested the original $200 million commitment, and in early 2011 pledged to invest an additional $200 million in U.S. technology companies in support of a new White House initiative, Startup America America.. Intel Capital has also joined the Startup America Board of Advisors. Intel provides resources resources and and hosts events for small and medium-sized businesses to help them scale their operations using technology. For example, in 2010, Intel Israel hosted the Local Small Business Conference for some 150 businesses from southern Israel. In China, our local teams worked with others to host sessions on intellectual property training for small and medium-sized Chinese companies to help support innovation. We also announced the expansion of our Digital Transformation Initiative in the Middle East, East, which focuses on improving education, supporting start-up companies in the high-tech sector, and building opportunities for R&D in the region.
ealaig o Ipac We periodically conduct local assessments to better understand Intel’s direct and indirect economic impact on the communities where we operate. These assessments have been important resources in discussions with local stakeholders and governments about long-term community viability, including but not limited to our two largest operating sites, Intel Oregon and Intel Arizona.
23 Back
Next
Previous View
G o v e r n A n C e
A n d
e C o n o m I C
f A C t o r s
3 Letter From Our CEO overvIew
5 Corporate Prole 9 Strategy and Management Approach GovernAnCe And eConomIC fACtors
20 fiacial Pac a ecic Ipac Ipac 201 2010 0 Financial Performance Performance > Economic Impact 25 Governance, Ethics, and Public Policy Polic y envIronmentAL fACtors
32 32 Environment Environment soCIAL fACtors
58 58 Workplace Workplace 79 Supply 79 Supply Chain Chain 92 Contributions to Society Societ y APPendIx
11 1 11 About This Report/Approach to Assurance Assurance 112 1 12 GRI GRI Content Index Index 119 1 19 UN Global Compact— Communication on Progress Progress
• Intel Oregon. With Oregon. With over 15,000 employees, Intel Oregon is Oregon is our largest site. It had a payroll of $1.8 billion in 2010, making it the state’s largest private employer. Intel Oregon is also the largest property tax payer in Washington County, with payments of approximately $28 million a year. Since rst acquiring property in Oregon in 1974, Intel’s capital investments in the state have exceeded $20 billion, and additional investments are planned. Intel, Intel Foundation, and Intel employee investments in local education and community giving exceeded $2 million in 2010. • Intel Arizona. In Arizona. In 2010, Intel employed approximately 9,700 employees at our sites in Chandler, Arizona. Since 1996, Intel has invested more than $12 billion in high-tech manufacturing capability in the state and spends over $450 million each year on R&D. Intel contributes more than $2.6 billion in economic impact to Arizona, including over 20,000 non-Intel jobs that result from our operations in the state. In 2010, more than 4,000 Intel Arizona employees volunteered in the local community, resulting in over $1 million in matching grants from the Intel Foundation to area schools and nonprot organizations. In addition, through our annual Intel Community Giving campaign, Intel Arizona employees donated $4.2 million in 2010, resulting in a total contribution of $7.2 million for qualied schools and nonprot organizations, including $3 million in matching funds from the Intel Foundation. Intel’s non-U.S. sites also signicantly impact the economies of countries around the world. For example, our operations in Costa Rica Rica have have provided more than 2,800 jobs and support for local industries such as electronic electronicss and construction. Our economic impact on Costa Rica has also been a catalyst for direct investments from other countries.
Access the Report Builder 2010 2010 Corporate Responsibility Report www.intel.com/go/responsibility
In 2008, we commissioned IHS Global Insight to conduct an independent study of Intel’s economic impact in the U.S. and Europe, including our direct and indirect roles in fueling economic growth, creating jobs, and enhancing productivity across multiple industries. industries. In the study, “The Economic Impact of Intel Corporation in the United States and European Union, 2001–2007,” calculations of Intel’s economic contributions were based on four layers of impact. The rst three layers measured the direct, indirect, and induced
effects of Intel’s own operations, and the fourth layer considered productivity gains throughout the economy that stem from the use of Intel® microprocessors. our ayers o
conom cono m c mpact mpact
Direct Impact
Indirect Impact
Induced Impact
Productivity Impact
Intel sells products, provides above-average wages to employees, and pays taxes.
Intel pays suppliers and creates business for resellers, who in turn generate employment.
Consumer spending by Intel employees and supplier and partner employees stimulates additional economic activity.
The use of Intel® products and our technology leadership result in productivity gains in the economy.
thi illai a aap a IHs Glbal Iigh p gaphic. t ca h a, IHs Glbal Iigh h ImPLAn hlgy, hlgy, a iy-aa appach iig h cic ippl c ca by h pci a pc ic.
The study found that between 2001 and 2007, Intel contributed $758 billion to the U.S. gross domestic product (GDP). Of this total, $458 billion was stimulated by Intel’s operations, and $300 billion was attributable to our productivity-based impact. The study also revealed that Intel contributed $247 billion (€177 billion) to the European Union GDP over the 2001–2007 period. Of this total, $28 billion (€20 billion) came from the operations of Intel and its extended ecosystem, and $219 billion (€157 billion) from productivity-based productivity -based gains. We also recognize the impact that Intel’s investments in education have in helping countries advance economic development and improve competitiveness. In addition, we have published white papers examining the economic impact of broadband Internet connectivity connectivity in in developing nations, strategic ICT spending, spending, and e-Learning environments. environments. For For more information, see the Contributions to Society Society section section of this report.
24 Back
Next
Previous View
G o v e r n A n C e
A n d
e C o n o m I C
f A C t o r s
3 Letter From Our CEO overvIew
5 Corporate Prole 9 Strategy and Management Approach GovernAnCe And eConomIC fACtors
20 Financial Performance and Economic Impact Impac t 25 Gac, ehic, a Pblic Plicy Plicy Governance and Ethics Public Policy and Advocacy Political Accountability envIronmentAL fACtors
32 32 Environment Environment soCIAL fACtors
58 58 Workplace Workplace 79 79 Supply Supply Chain Chain 92 Contributions to Society Societ y APPendIx
11 1 11 About This Report/Approach to Assurance Assurance 112 1 12 GRI GRI Content Index Index
Governance, Ethics, and Public Policy “ Conduct business with uncompromising integrity and professionalism.” This statement, part of the formal Intel Values, expresses our commitment to upholding the highest standards of corporate governance and business ethics in our day-to-day activities at Intel and in our engagement with external stakeholders. We work continuously to develop a strong culture of trust through open and direct communication, and we are committed to accountability and transparency in our work on public policy issues.
1
2 3
m b iag.
119 1 19 UN Global Compact— Communication on Progress Progress
Ky Gac Lik Intel Governance and Ethics
90
%
Access the Report Builder 2010 2010 Corporate Responsibility Report www.intel.com/go/responsibility
30
%
13
Percentage of
Percentage of women
Number of languages
independent directors on Intel’s Board
on our Board at the end of 2010
in which the Intel Code of Conduct is availab available le
Intel Code of Conduct Human Rights Principles Intel Public Policy Competition in the Innovation Economy Political Accountability Guidelines
25 Back
Next
Previous View
G o v e r n A n C e
A n d
e C o n o m I C
f A C t o r s
3 Letter From Our CEO overvIew
5 Corporate Prole 9 Strategy and Management Approach GovernAnCe And eConomIC fACtors
20 Financial Performance and Economic Impact Impac t 25 Gac, ehic, a Pblic Plicy Plicy > Governance and Ethics Public Policy and Advocacy Political Accountability envIronmentAL fACtors
32 32 Environment Environment soCIAL fACtors
58 58 Workplace Workplace 79 79 Supply Supply Chain Chain 92 Contributions to Society Societ y APPendIx
11 1 11 About This Report/Approach to Assurance Assurance 112 1 12 GRI GRI Content Index Index 119 1 19 UN Global Compact— Communication on Progress Progress
Governance and Ethics Our corporate governance structure, formal Code of Conduct, and Ethics and Compliance Program help to ensure that we maintain the highest standards of integrity in everything we do. Our Code of Conduct, Corporate Governance Guidelines, Board of Directors membership, Board committee charters, and Human Rights Principles are available on our Corporate Governance and Ethics web Ethics web site. Detailed executive compensation information is included in our most recent Proxy Statement. Statement.
Cpa Gac As of the ofindependent 2010, Intel’s directors. Board included President and CEO Paul Otellini andend nine Jane Shaw, a non-executive independent director, assumed the role of Chairman in May 2009. The Chairman presides over all meetings of the Board, independent directors, and stockholders; prepares Board meeting agendas; and manages the Board’s process for annual director self-assessment and evaluation of the Board. Directors are not paid for any service to the company other than their director compensation. We rely on them for their diverse knowledge, personal perspectives, and solid business judgment. They meet individually with senior management, attend and participate in employee forums, and—unaccompanied by senior management—visit Intel sites around the world to assess local issues. A number of directors have expertise and backgrounds in key corporate responsibility areas, including corporate governance, education, and energy efciency. Director biographies are available on our Biographies Biographies web web site. The Board’s Audit, Compensation, Compliance, Corporate Governance and Nominating, and Finance committees consist solely of independent
Access the Report Builder 2010 2010 Corporate Responsibility Report www.intel.com/go/responsibility
directors who provide objective oversight of the company’s management. The Corporate Governance and Nominating Committee is responsible for reviewing and reporting to the Board on our corporate responsibility and sustainability performance—including performance—including environmental topics such as climate
change—and the company’s public reporting in this area. Information on our director nomination processes is available in the committee’s charter and charter and in our Proxy Statement Statement,, including information about our approach to board diversity. Intel received Corporate Secretary magazine’s 2010 Corporate Governance Award for most effective shareholder communications, in recognition of our innovative use of technology and social media to promote engagement and transparency. For many years, stockholders who could not attend the Intel annual stockholders’ meeting in person have had the opportunity to attend via the Internet. Over the past two years, we have expanded this functionality to allow stockholders to submit questions online prior to the meeting, and to cast votes online during the meeting. View the most recent Intel annual stockholders’ meeting. meeting. Il Cpa Gac a a Glac • Independent non-executive Chairman of the Board • Nine of our 10 Board members are independent directors • All of our Board committees (other than the Executive Committee) are made up of independent directors • Corporate Governance Guidelines and committee charters are publicly disclosed • Majority vote practices have been voluntarily adopted • Board-ap Board-approved proved CEO succession plan is in place • Policy limits directors to no more than four external board seats • Board self-assessment process and individual director annual performance reviews are in place • 30% of Board directors are fe female male • Charter dictates Board committee responsibility for corporate responsibility responsib ility and sustainabiliity ty issues • Corporate responsibility and climate change information has been integrated into our annual report • Employee and executive compensation are linked to to corporate responsibility factors
26 Back
Next
Previous View
G o v e r n A n C e
A n d
e C o n o m I C
f A C t o r s
3 Letter From Our CEO overvIew
5 Corporate Prole
Il C Cc
ehic a Cpliac Pga
9 Strategy and Management Approach
The Intel Code of Conduct guides Conduct guides the behavior of our employees, ofcers, non-employee directors, and suppliers, and serves as a cornerstone of Intel culture. The Code’s business principles and guidelines seek to promote honest and ethical conduct, deter wrongdoing, and support compliance with applicable laws and regulations. The principles embodied in the Code also express our policies related but not limited to conicts of interest, nondiscrimination, antitrust, anti-bribery and anti-corruption, privacy, health and safety, and protecting our company’s assets and reputation. The Code directs employees to consider both short- and long-term impacts on the environment and the community when they are making business decisions.
Our Ethics and Compliance Program advances a culture of the highest levels of business ethics and legal compliance. The Board reviews implementation of ethics and compliance programs and continuously assesses the integrity of senior management. Intel’s CEO sets the tone for our ethical culture and holds the senior management team accountable for addressing ethics and compliance risk; role-modeling ethical behavior and holding their managers accountable; communicating policy and conduct expectations; and overseeing business group ethics and compliance systems.
GovernAnCe And eConomIC fACtors
20 Financial Performance and Economic Impact Impac t 25 Gac, ehic, a Pblic Plicy Plicy > Governance and Ethics Public Policy and Advocacy Political Accountability envIronmentAL fACtors
32 32 Environment Environment soCIAL fACtors
58 58 Workplace Workplace 79 79 Supply Supply Chain Chain 92 Contributions to Society Societ y APPendIx
11 1 11 About This Report/Approach to Assurance Assurance 112 1 12 GRI GRI Content Index Index 119 1 19 UN Global Compact— Communication on Progress Progress
All employees are expected to complete training on the Code of Conduct when they join the company and annually thereafter. The Code is available in 13 languages, and training sessions incorporate real case scenarios. Employees are encouraged to raise ethical questions and issues, and have multiple channels to do so—anonymously, if they prefer. Employees assert adherence to the Code through an annual disclosure process for targeted populations across the company. In 2010, we added a series of questions to our Organizational Health Survey to Survey to assess our employees’ knowledge of ethics and compliance. Our employees reported that the Code of Conduct expectations had been clearly communicated to them and that they understand the consequences of not adhering to the Code. Depending on their roles and geographical locations, certain employees are assigned more in-depth ethics and compliance training courses, including those covering anti-corruption, import-export compliance, insider trading, and antitrust. Approximately 16,000 employees were trained on our anti-corruption policies and procedures in 2010. Intel has also published a set of Human Rights Principles Principles to to complement the Code of Conduct and express our commitment to human rights and responsible labor practices. The Code, our policies and guidelines, guidelines, and the annual Code training course cover these principles.
Access the Report Builder 2010 2010 Corporate Responsibility Report www.intel.com/go/responsibility
At the beginning of each year, our CEO communicates with employees and senior managers the importance of ethics and legal compliance. This “tone from the top”—combined with our annual ethics training, regular communications throughout the year, and educational resources on our employee intranet site—help to create an ethical and legally compliant culture. We maintain distributed responsibility for managing ethics and compliance, with a number of cross-functional teams and leaders in place to drive awareness and accountability throughout the company. Intel’s Legal Compliance organization ensures world-class compliance programs for government laws, regulations, and decrees relevant to our global business activities. Our Ethics and Compliance Oversight Committee (ECOC) includes senior representatives from across the company and is chartered by and reports to the Audit Committee of the Board. The ECOC is co-chaired by the Director of Internal Audit and the Vice President, Director of Corporate Legal. Each quarter, the ECOC invites various organizations within Intel to assess and report on ethics and compliance in their respective businesses, and reviews risk topics that span business groups. Our Ethics and Compliance Program Ofce is responsible for the day-today administration of Intel’s Ethics and Compliance Program. Integral to the success of the program are the many Ethics and Compliance Business Champions across the company, who are responsible for advocating and monitoring ethics and compliance within their groups. We also have regional leadership forums that bring managers together to review issues and program effectiveness. Support organizations such as Finance, Audit, Human Resources, and Legal provide expertise to help management and employees execute to the company’s ethics and compliance expectations.
27 Back
Next
Previous View
G o v e r n A n C e
A n d
e C o n o m I C
f A C t o r s
3 Letter From Our CEO overvIew
5 Corporate Prole 9 Strategy and Management Approach GovernAnCe And eConomIC fACtors
20 Financial Performance and Economic Impact Impac t 25 Gac, ehic, a Pblic Plicy Plicy > Governance and Ethics Public Policy and Advocacy Political Accountability envIronmentAL fACtors
32 32 Environment Environment soCIAL fACtors
58 58 Workplace Workplace 79 79 Supply Supply Chain Chain 92 Contributions to Society Societ y APPendIx
11 1 11 About This Report/Approach to Assurance Assurance 112 1 12 GRI GRI Content Index Index 119 1 19 UN Global Compact— Communication on Progress Progress
Our 2010 focus areas included: reinforcing a culture in which issues are raised and addressed effectively; promoting ethics and compliance leadership; tracking emerging regulations; and updating our Code of Conduct, policies, and training accordingly. In 2010, our senior management team had in-depth conversations with their staff members on the importance of role-modeling ethical behavior related to the ethics and compliance risks of their business unit.
them to review with the leaders of their respective business groups. The largest categories of veried cases in 2010 included corporate travel card misuse, expense reporting misconduct, falsication of employment credentials, and misuse of assets. Given our commitment to maintaining the highest levels of ethics and compliance, we addressed these concerns at a systemic level through senior management discussions and our employee communications, and corrective action measures at an individual level.
In 2010, six Intel business groups and one Intel site completed a comprehensive risk assessment review with the ECOC. Business groups monitor their performance (including training, management tone, risk assessment, and more) on a quarterly basis and send the results to the Ethics and Compliance Program Ofce. The business groups also conduct self-assessments and put in place action plans and training. In 2010, we also implemented an ethics and compliance model for standalone subsidiaries.
In 2011, as we continue to expand into new markets and businesses, complete acquisitions, and ramp new factories, we will continue to assess risk and execute our training and ethics programs consistently for all current and new employees, to ensure that we demonstrate uncompromised integrity in our actions worldwide.
In 2010, we launched the Intel Ethics and Compliance Excellence Awards program, which is designed to recognize teams and individual employees for their contributions to Intel’s ethical and compliant environment. Award recipients made signicant contributions to the development and deployment of our tone and accountability programs, Code of Conduct training and surveys, and risk and controls systems. We also launched a successful internal Ethics and Legal Compliance speaker series and newsletter in 2010. Themes included export compliance, antitrust, anti-corruption, product security, and government contracting.
In May 2009, Intel incurred a $1.45 billion ne as a result of the European Commission’s conclusion that Intel had violated competition law in Europe. We believe that the decision was wrong and are appealing it. In 2009, the New York Attorney General led an antitrust lawsuit against Intel. We disagree with the plaintiff’s allegations and claims. We believe that Intel has competed fairly and lawfully, and we intend to conduct a vigorous defense of this lawsuit.
Intel’s processes for informing senior management and the Board about misconduct issues include periodic reports of overall misconduct statistics,
In November 2010, the Federal Trade Commission (FTC) publicly announced nal approval of a settlement between Intel and the FTC that fully resolves a 2009 FTC lawsuit against Intel. Among other provisions, the agreement includes a statement that the agreement does not constitute an admission that Intel has violated the law or that the facts alleged in the complaint are true, as well as provisions with respect to the treatment and extension of certain intellectual property agreements between Intel and Advanced Micro Devices, Inc., Intel and NVIDIA Corporation, and Intel and VIA Technologies, Inc. Intel continues to disagree with the FTC’s allegations that Intel has violated any law. Nevertheless, Intel believes that the settlement is in the best interests of its stockholders, employees, and
as well as communication of details about key investigations while they are in progress and after they have been completed. A quarterly investigative package is provided to our Ethics and Compliance Business Champions for
customers. Based on our current understanding and expectations, we do not believe that any changes in our business practices to comply with the agreement will be material to our nancial position, results, or cash ows.
We maintain a robust process for reporting misconduct, including online reporting channels, channels, and have a non-retaliation policy that we clearly communicate to employees. In 2010, we enhanced communications with employees on available channels for raising issues. From 2008 through the end of 2010, employee use of our “Ask Ethics” portal for answers to ethical dilemmas increased 100%.
Access the Report Builder 2010 2010 Corporate Responsibility Report www.intel.com/go/responsibility
Ai I
28 Back
Next
Previous View
G o v e r n A n C e
A n d
e C o n o m I C
f A C t o r s
3 Letter From Our CEO overvIew
5 Corporate Prole 9 Strategy and Management Approach GovernAnCe And eConomIC fACtors
20 Financial Performance and Economic Impact Impac t 25 Gac, ehic, a Pblic Plicy Plicy Governance and Ethics > Public Policy and Advocacy Political Accountability
In the spirit of transparency, we created the Competition in the Innovation Economy web Economy web site, which includes information and regular updates on these matters. Additional information is also available in the Intel 2010 Annual Report and Form 10-K. 10-K .
Public Policy and Advocacy Our goals in working on policy topics are to engage as a trusted advisor, to fully understand different perspectives, and to educate legislators on the effects that regulations have on our industry, customers, and employees.
envIronmentAL fACtors
32 32 Environment Environment soCIAL fACtors
58 58 Workplace Workplace 79 79 Supply Supply Chain Chain 92 Contributions to Society Societ y APPendIx
11 1 11 About This Report/Approach to Assurance Assurance 112 1 12 GRI GRI Content Index Index 119 1 19 UN Global Compact— Communication on Progress Progress
The following is a brief summary of our key areas of interest and engagement in the public policy arena. For more information, visit our Public Policy Policy web site and our public policy blog.
Iai a Cpii Intel seeks to promote innovation and competition by engaging in policy advocacy in the following areas: Ip/C. We support customs and trade facilitation policies that Ip/C. We foster administrative ease, cost-effectiveness, speedy and barrier-free entry, predictability, fair enforcement, and transparency with respect to exporting and importing products. Illcal Ppy a Pa r. Intel r. Intel depends on sound patent systems worldwide to protect intellectual property (IP) and enable the development and deployment of new technologies. We work to improve the quality and reliability of patents, help new World Trade Organization (WTO) members conform their patent laws to WTO requirements, develop procedures to lower the costs of resolving patent disputes, and ensure that the interests of patent holders and good-faith manufacturers are properly balanced through fair litigation rules.
Access the Report Builder 2010 2010 Corporate Responsibility Report www.intel.com/go/responsibility
ta. Intel ta. Intel supports measures that enhance the ability of innovative companies to compete in the global marketplace and, in turn, produce economic prosperity. Our business is highly cost-conscious and capital-intensive, and
the location of our facilities can be substantially affected by the tax and economic development policies of host countries. An increasing share of Intel’s revenue comes from outside the Americas (80% in 2010), requiring us to locate at least some facilities overseas near our customers. Creating competitive tax and other conditions in the U.S. will help Intel maintain its high number of well-paid employees in the U.S. ta. Intel supports trade agreements and rules that facilitate general ta. Intel commerce between countries and expand the high-tech industry’s access to world markets. We work proactively to support the development of free trade agreements (FTAs) on a worldwide (via the WTO), regional (e.g., the Central American FTA), and bilateral (e.g., the pending U.S.-Korea FTA) basis. Such FTAs improve Intel’s access to markets by eliminating tariffs on products, increasing IP protections that are critical to innovation and investment, and ensuring a more open and transparent regulatory and standards environment. wkc. To ensure that the U.S. has access to the highly skilled talent wkc. To needed to remain competitive, we advocate for immigration reforms to enable businesses to recruit, hire, and retain highly skilled foreign nationals in job elds that have a shortage of qualied U.S. workers. ei a egy. As egy. As an environmentally responsible manufacturer of energy-efcient products, Intel reaches out to governments worldwide to help identify policies that address government and stakeholder concerns while preserving our industry’s ability to operate and market its products. Intel has led industry efforts to implement voluntary measures that can make regulation unnecessary, such as pulling together an industry commitment to reduce emissions of high global-warming gases. We have also led a project with governments to eliminate the vast majority of the industrial use of potentially harmful chemicals, known as PFOS. Intel is also helping to shape government policies that recognize the role that semiconductors and other high-tech devices can play in improving energy efciency—and thus helping to address climate change issues throughout the world. For more information on our environmental policy initiatives, see the Environment Environment section section of this report.
29 Back
Next
Previous View
G o v e r n A n C e
A n d
e C o n o m I C
f A C t o r s
3 Letter From Our CEO overvIew
5 Corporate Prole 9 Strategy and Management Approach GovernAnCe And eConomIC fACtors
20 Financial Performance and Economic Impact Impac t 25 Gac, ehic, a Pblic Plicy Plicy Governance and Ethics > Public Policy and Advocacy Political Accountability envIronmentAL fACtors
32 32 Environment Environment soCIAL fACtors
58 58 Workplace Workplace 79 79 Supply Supply Chain Chain 92 Contributions to Society Societ y APPendIx
11 1 11 About This Report/Approach to Assurance Assurance 112 1 12 GRI GRI Content Index Index 119 1 19 UN Global Compact— Communication on Progress Progress
Access the Report Builder 2010 2010 Corporate Responsibility Report www.intel.com/go/responsibility
ecai. We collaborate with international ministries of education, the ecai. We U.S. Department of Education, states, local school districts, and other associations to help improve education—particularly in the areas of math, science, engineering, and technology. In 2010, we also commissioned a white paper on paper on the role of information technology in transformative education policy. For more information, see the Contributions to Society section Society section of this report.
tchical Plicy a saa To advance a forward-thinking technical policy and standards environment, we engage in the following policy areas: Cicai a Baba. Intel Cicai Baba. Intel promotes policies that encourage the deployment of wireless and wired broadband services to improve communications and technology access for customers and businesses. To help bridge the digital divide, we also promote policies that expand the allocation of universal service/access funds to include broadband access, especially in remote regions where it has previously been cost-prohibitive. Pal Halh a Halh Iai tchlgy. Through tchlgy. Through the recent global healthcare reform and economic stimulus programs, Intel partners with policy makers to drive public policies that increase the use of information technology (IT) in healthcare worldwide as a means to reduce costs, increase accuracy and effectiveness, and expand access to remote areas. This includes improvements in medication adherence monitoring, early detection and prevention of chronic diseases, and mobile monitoring. We support policies that provide incentives to increase alternatives to traditional hospitals and other institutional care facilities; establish standards that will enable the exchange of electronic medical records across international borders; and remove regulatory barriers that present challenges in the shift to home healthcare, such as practitioner licensure regulations restricting the use of telemedicine across state, national, and international borders.
sciy a Piacy. Intel Piacy. Intel works to create user trust in information technology, and a policy environment that fosters innovation and empowers users to protect the integrity of their systems and data. Trust in the global digital economy is contingent upon providing robust security and a high level of privacy protection. Intel works to inform policy stakeholders in the legislative, regulatory, standards, and academic arenas about the future of technology, and then takes the results of these discussions back to our product developers, who design security and privacy into our products and services. Intel is a member of the International Association of Privacy Professionals, and with additional organizations celebrated annual Data Privacy Day, Day, aimed at promoting privacy awareness and education, particularly among teenagers. We also host events and collaborate on other projects, including employee volunteer initiatives. In Argentina, for example, employee volunteers developed a privacy education program called Tu Privacidad Online, which had reached 5,000 students, parents, and teachers by the end of 2010; and in Israel, Intel hosted the International Conference of Data Protection and Privacy Commissioners at our site. To read Intel’s privacy policy for our own business, visit the Intel Privacy Policy Policy web site. saa. Intel advocates for information and communications technolsaa. Intel ogy standards that provide benets to industry, consumers, and governments worldwide, including interoperability and consistency in quality. mia a C. We C. We support media and content policies that expand markets for digital products while respecting IP rights and consumer interests. Such policies include support for design freedom and technical innovation, as well as content exibility, portability, and choice for consumers.
Increased use of IT in healthcare worldwide has the power to help reduce costs, increase accuracy and effectiveness, and expand access to remote areas.
30 Back
Next
Previous View
G o v e r n A n C e
A n d
e C o n o m I C
f A C t o r s
3 Letter From Our CEO overvIew
5 Corporate Prole 9 Strategy and Management Approach GovernAnCe And eConomIC fACtors
20 Financial Performance and Economic Impact Impac t 25 Gac, ehic, a Pblic Plicy Plicy Governance and Ethics Public Policy and Advocacy > Political Accountability envIronmentAL fACtors
32 32 Environment Environment soCIAL fACtors
58 58 Workplace Workplace 79 79 Supply Supply Chain Chain 92 Contributions to Society Societ y APPendIx
11 1 11 About This Report/Approach to Assurance Assurance 112 1 12 GRI GRI Content Index Index 119 1 19 UN Global Compact— Communication on Progress Progress
Political Accountability In the past few years, stakeholders have requested greater disclosure regarding corporate political contributions. Intel’s Political Accountability Guidelines outline Guidelines outline our approach to making political contributions, including details about accountability at the senior management and Board of Directors levels. In drafting the guidelines, we referred to the Center for Political Accountability’s Model Code of Conduct for Corporate Political Spending. Spending. In early 2011, we updated our guidelines to provide additional transparency and clarication on certain practices regarding independent expenditures. On an annual basis, we report Intel’s corporate political contributions for the previous year. In 2010, our corporate contributions to state and local candidates, campaigns, and ballot propositions totaled $151,900. We also contributed $210,480 to local chambers of commerce. For a list of our contributions, visit Intel 2010 U.S. Corporate Contributions. On Contributions. On a quarterly basis, Intel les reports with the Secretary of the U.S. Senate and the Clerk of the U.S. House of Representatives detailing our lobbying activities. These reports can be found on the Senate’s Lobbying Disclosure Act Database.. In 2010, our reported lobbying expenditures totaled $3.7 million, Database compared to $3.9 million in 2009.
ta Aciai a Bi Calii mbhip Our memberships in industry and trade associations help us work collaboratively with other companies and groups to address key public policy issues. The ve organizations that received the largest contributions from Intel in 2010 were the Semiconductor Industry Association, the Information Technology Industry Council, the National Association of Manufacturers, the Technology CEO Council, and the U.S. Chamber of Commerce. Information on trade association payments is included in the list of Intel Access the Report Builder 2010 2010 Corporate Responsibility Report www.intel.com/go/responsibility
2010 U.S. Corporate Contributions. Contributions. We also have increased transparency by providing a breakdown of dues payments to our top associations that are applied toward political activities in this list.
During 2010, signicant controversy surrounded the U.S. Chamber of Commerce’s public statements and actions on the topic of climate change, including opposition and lobbying against provisions in proposed climate legislation. Some stakeholders asked Intel and other companies to clarify their positions on climate change or to pull out of the organization altogether. After continued review of the issue, Intel decided to remain a member of the Chamber, because the organization provides a strong industry voice on a wide range of policies that affect our business, not only in the U.S., but around the globe through Chamber afliates and other organizations. The Chamber has a diverse membership, and we are not aligned 100% with the group on all policy matters. Likewise, our positions do not always align with those of other industry and trade organizations to which we belong. To ensure that stakeholders understand our policies on various matters, including climate change, we post our positions on our Corporate Governance and Ethics and Ethics and Public Policy web Policy web sites.
Il Pliical Aci Ci The Intel Political Action Committee (IPAC) was created in 1980 as a way to enable employees to support candidates whose legislative goals align with Intel’s public policy priorities. Although Intel pays the administrative expenses of IPAC, corporate funds are not contributed to the IPAC fund, and all employee contributions to it are voluntary. An IPAC Executive Committee made up of Intel employees reviews and evaluates candidate requests. U.S. congressional and some state legislative candidates are eligible to receive IPAC contributions and are evaluated on many factors, most importantly their support for Intel Values Values.. Whenever possible, IPAC donations are made directly to candidates rather than through leadership PACs and 527 organizations. For the 2010 election cycle, the sum of political contributions from IPAC to federal candidates was $434,560. For a list of contributions, see Intel PAC Contributions—2010 Cycle. Cycle.
31 Back
Next
Previous View
e n v I r o n m e n t A L
f A C t o r s
3 Letter From Our CEO overvIew
5 Corporate Prole 9 Strategy and Management Approach GovernAnCe And eConomIC fACtors
20 Financial Performance and Economic Impact Impac t 25 Governance, Ethics, and Public Policy Polic y envIronmentAL fACtors
32 32 ei ei Our Approach to Environmental Sustainability
Environment We incorporate environmental performance goals throughout our operations, seeking continuous improvement in energy efciency, emissions reductions, resource conservation, and other areas. Recognizing that consumer use of our products accounts for the largest portion of our overall carbon footprint, we focus on improving the energy-efcient performance of our products and collaborating with others to develop innovative ways that technology can help address long-term sustainability challenges across other industries.
KeY Issues & PrIorItIes
Climate Change and Energy Efciency Water Conservation Waste: Reduce, Reuse, Recycle Reducing Air Emissions Energy-Efcient Performance and Product Ecology Applying Technology to Environmental Challenges Performance Summary & Goals
m b iag.
1
2 3
soCIAL fACtors
58 58 Workplace Workplace 79 79 Supply Supply Chain Chain 92 Contributions to Society Societ y Ky ei Lik
APPendIx
11 1 11 About This Report/Approach to Assurance Assurance 112 1 12 GRI GRI Content Index Index 119 1 19 UN Global Compact— Communication on Progress Progress
Access the Report Builder 2010 2010 Corporate Responsibility Report www.intel.com/go/responsibility
Intel Environment Site
1
40
Billion
136
$
Million
Intel is the largest
Gallons of water saved
Cost savings from 11 employee
voluntary purchaser of “green” power in the U.S., according to the U.S. EPA
as a result of our conservation efforts since 1998
projects that receiv received ed Intel Environmental Excellence Awards in 201 2010 0
Product Energy Efficiency Technology for Environment Intel’s Environmental, Health, and Safety Policy Intel’s Climate Change Policy Intel’s Water Policy
32 Back
Next
Previous View
e n v I r o n m e n t A L
f A C t o r s
3 Letter From Our CEO overvIew
5 Corporate Prole 9 Strategy and Management Approach GovernAnCe And eConomIC fACtors
20 Financial Performance and Economic Impact Impac t 25 Governance, Ethics, and Public Policy Polic y envIronmentAL fACtors
32 32 ei ei > Our Approach to Environmental Sustainability KeY Issues & PrIorItIes
Climate Change and Energy Efciency Water Conservation Waste: Reduce, Reuse, Recycle Reducing Air Emissions
Our Approach to Environmental Sustainability
materials that we use in our products. We seek alternatives for hazardous materials, and when we must use them, we take rigorous steps to ensure that they are handled safely from the time they enter our operations until they are properly disposed of or recycled.
Building and designing the world’s most sophisticated products in a sustainable manner requires careful management of energy consumption, air emissions, and resource conservation. We incorporate Design for the Environment principles throughout all phases of our product development process. We address the environmental challenges of each new generation of technology long before manufacturing begins. Our teams consider environmental impact when we perform site selections, design Intel buildings, set performance levels for manufacturing tools, and establish goals for new production processes. Intel supports a cautionary approach to the
Product energy efciency has become increasingly important in our industry, given the growing demand for more powerful electronics, the increasing cost of energy, and the corresponding impact on the environment. We are focused on reducing the environmental impact of our products, including efforts to drive new levels of energy-efcient performance. Although our components generally make up only a small portion of an electronic device sold to a consumer, we believe that we can play a signicant role in helping to minimize the environmental impact of electronic products by designing our products with higher energy efciency, removing environmentally sensitive materials, and collaborating on industry initiatives.
Intel® Product Life Cycle and Value Chain
m iaga l aiial iai.
Energy-Efcient Performance and Product Ecology Applying Technology to Environmental Challenges Performance Summary & Goals
Research and Development
Supply Chain and Logistics
Manufacturing and Facilities
Product Use
End of Life
soCIAL fACtors
58 58 Workplace Workplace 79 79 Supply Supply Chain Chain 92 Contributions to Society Societ y APPendIx
11 1 11 About This Report/Approach to Assurance Assurance 112 1 12 GRI GRI Content Index Index 119 1 19 UN Global Compact— Communication on Progress Progress
Access the Report Builder 2010 2010 Corporate Responsibility Report www.intel.com/go/responsibility
w ci ial ipac hgh h i ag pc li cycl, iig i ach a lp gy-ci pac a aial lci --li aag.
Ab h Pac Gaph: Gaph: thgh hi ci, ha icl gaph h ky iica ha aag ial, halh, a ay pac. f cl 20 ya, i aag ha i h iica a gla bai. w p pac bh i abl a h bai a “p i pci” “p chip” aliz pci i (nPI). th nPI i i icly li a pci a i i a bali ya 1999 (nPI = 100 bali ya 1999), ih h cpi gh ga ii a gy iica, hich a bali ya 2000. wih hi ic clai Il’ glbal aacig ll, h nPI abl ya--ya cpai a pp ig cpai. rc “p chip” a a ypical chip iz 1 c 2, b acal chip ay i iz pig h pcic pc. I 2009, aacig p a igicaly c ach l a, a l h li cic . Bca hi, ay h aliz ial iica ha ack a p ica i 2009, laig
aypical l i ha ya. ulyig aa h pac gaph i aailabl la ig h rp Bil Bil Cpa rpibiliy rp b i.
33 Back
Next
Previous View
e n v I r o n m e n t A L
f A C t o r s
3 Letter From Our CEO overvIew
5 Corporate Prole 9 Strategy and Management Approach GovernAnCe And eConomIC fACtors
20 Financial Performance and Economic Impact Impac t 25 Governance, Ethics, and Public Policy Polic y envIronmentAL fACtors
32 32 ei ei > Our Approach to Environmental Sustainability KeY Issues & PrIorItIes
Climate Change and Energy Efciency Water Conservation Waste: Reduce, Reuse, Recycle Reducing Air Emissions Energy-Efcient Performance and Product Ecology Applying Technology to Environmental Challenges Performance Summary & Goals soCIAL fACtors
58 58 Workplace Workplace 79 79 Supply Supply Chain Chain 92 Contributions to Society Societ y APPendIx
11 1 11 About This Report/Approach to Assurance Assurance
We have joined forces with businesses and governments worldwide to nd and promote additional ways that technology can be used to address environmental challenges across all sectors of the economy. We recognize that this represents a market opportunity for Intel and are helping to drive initiatives aimed at using technology for data collection, analysis, and modeling, to enable better energy management and actions to reduce environmental impact.
maagig eial Pac Our commitment to environmental sustainability is embodied in the Intel Code of Conduct and Conduct and Intel’s Environmental, Health, and Safety Policy Policy.. For more detailed information about our commitments in the areas of climate change and water conservation, see Intel’s Climate Change Policy Policy and Intel’s Water Policy Policy.. In 2010, we continued to work to make progress against the 2012 goals that we set at the beginning of 2008. We also establish clear environmental expectations for our suppliers and have initiated a number of sustainable purchasing and supplier footprinting initiatives. For more information, see the Supply Chain Chain section section of this report. Multiple groups across Intel play critical roles in driving strategy, operational and product improvements, and policy initiatives related to environmental responsibility. Our Environmental Health and Safety (EHS) organization has primary responsibility for managing our environmental compliance and driving performance improvements in our operations. Product-related
Access the Report Builder 2010 2010 Corporate Responsibility Report www.intel.com/go/responsibility
For a decade, Intel has maintained a multi-site, third-party-veried ISO 14001 registration. The registration evaluates the effectiveness of our environmental management system (EMS). A major achievement in 2010 was Intel’s company-wide certication for OHSAS 18001, the internationally recognized standard for occupational safety and health management systems. As a result, in 2010 we successfully completed fully integrated ISO 14001 and OHSAS 18001 audits at several of our manufacturing sites, in addition to an annual audit of our Corporate EHS Group, which oversees key elements of our EHS management systems. All audits were conducted by the National Standards Authority of Ireland (NSAI), an independent third-party registrar. Intel’s fully integrated multi-site registration (MSR) to both ISO 14001 and OHSAS 18001 extends 18001 extends through December 31, 2013. As new sites are added, we will continue to complete the necessary certication audits to add them to our integrated ISO 14001 and OHSAS 18001 multi-site registration. Going forward, Intel will complete initial certication audits for our new manufacturing operations in Vietnam and China.
G Bilig dig
The Eco Management Review Committee, led by our senior vice president and general manager of Manufacturing and Supply Chain, comprises senior leaders from across the company and meets monthly to review environ-
Our engineers have incorporated green design standards and building concepts into the construction of our facilities for many years. Intel now has a policy of designing all new buildings to a minimum Leadership in Energy and Environmental Design (LEED) Silver level. A design center in Haifa, Israel—completed in 2010—is our rst LEED-certied building and was the rst building in Israel to receive LEED Gold certication. We also achieved basic LEED certication in 2010 for an Intel factory and ofce building in Kulim, Malaysia, as a result of improvements made to our 14-year-old facility at that location. In 2010, we submitted an application to the U.S. Green Building Council to get our rst wafer fabrication facility (fab) LEED certi-
mental sustainability, performance, and strategy. A broad cross-section of Intel organizations—including Corporate Services, Information Technology,
ed. In March 2011, we achieved LEED for Existing Buildings Silver certication for tion for our entire Ocotillo manufacturing campus in Chandler, Arizona.
sustainability is managed by a number of groups across the company. The sustainable design of our products is driven by the Corporate Products Regulations and Standards Group, working with our EHS and Technology Development groups. Our Eco-Technology Program Ofce promotes the importance of energy-efcient performance in our products and identies new opportunities for our technologies.
112 1 12 GRI GRI Content Index Index 119 1 19 UN Global Compact— Communication on Progress Progress
Human Resources, Corporate Affairs, Global Public Policy, Intel Labs, and Supply Chain—meet regularly as part of our Eco-Stakeholder Council to coordinate business group strategies and employee engagement initiatives.
34 Back
Next
Previous View
e n v I r o n m e n t A L
f A C t o r s
3 Letter From Our CEO overvIew
5 Corporate Prole 9 Strategy and Management Approach GovernAnCe And eConomIC fACtors
20 Financial Performance and Economic Impact Impac t 25 Governance, Ethics, and Public Policy Polic y envIronmentAL fACtors
32 32 ei ei > Our Approach to Environmental Sustainability KeY Issues & PrIorItIes
Climate Change and Energy Efciency Water Conservation Waste: Reduce, Reuse, Recycle Reducing Air Emissions Energy-Efcient Performance and Product Ecology Applying Technology to Environmental Challenges Performance Summary & Goals soCIAL fACtors
58 58 Workplace Workplace 79 79 Supply Supply Chain Chain 92 Contributions to Society Societ y APPendIx
11 1 11 About This Report/Approach to Assurance Assurance 112 1 12 GRI GRI Content Index Index 119 1 19 UN Global Compact— Communication on Progress Progress Access the Report Builder 2010 2010 Corporate Responsibility Report www.intel.com/go/responsibility
We continue to invest in facility improvements in support of our great place to work objectives. In 2010, we renovated 1 million square feet of ofce space, cafes, and tness centers. The renovations included LEED criteria such as use of low-VOC paints, low-ow faucets and toilets, noadhesive carpets, and furniture that contains recyclable content and is recyclable at end-of-life.
egagig eply In 2010, we further encouraged our employees to help reduce Intel’s environmental footprint through a number of programs. Likig Cpai eial Pac. Since Pac. Since 2008, we have linked a portion of every employee’s variable compensation—from front-line employees to our CEO—to the achievement of environmental sustainability metrics. The 2010 metrics focused on carbon emission reductions in our operations and energy-efciency goals for new products. While the environmental component represents a relatively small portion of the overall Employee Bonus (EB) Bonus (EB) calculation, we believe that it helps focus employees on the importance of achieving our environmental objectives. Benchmarking and discussions with external stakeholders reveal that it is rare for companies to link compensation to sustainability goals for all employees. Environmental metrics for our 2011 EB calculation will focus on energy efciency in our operations and our products. eply saiabiliy Gp. Intel Gp. Intel supports employee-initiated grassroots efforts, including the Intel Employee Sustainability Network (IESN), a chartered employee group. IESN, in place at Intel since 2004, provides employee networking, volunteering, and educational opportunities that align with our corporate environmental focus areas. The group’s activities have included Northwest Earth Institute discussion group courses delivered at several Intel sites around the world. saiabiliy i Aci Ga Pga. Through saiabiliy Pga. Through this program, employees can apply for funding for innovative environmental projects. Employees are encouraged to include external stakeholders in their projects, and many often focus their efforts on addressing environmental
issues in their local communities. In 2010, Intel provided $100,000 in funding for 13 employee projects—including the creation of a proof-ofconcept model to demonstrate how boiler emissions (from boilers that serve the fab) could be captured and used to grow algae, which could then be converted into biofuel. The results of the project, which is being completed in collaboration with globally renowned algae researchers and analysts at Arizona State University and Science Foundation Arizona, are detailed in our “Zero Emission Fabs” video. Other projects included a waterconservation demonstration garden in California, solar PC labs in Costa Rica and Bangladesh Bangladesh,, a composting project in Malaysia, a streetlight monitoring system in Ireland, and a coral reef documentation project project that that uses Intel technology. Il eial ecllc Aa. Since Aa. Since 2000, Intel has presented these awards to employees who have helped reduce Intel’s environmental impact. In 2010, 62 individuals and teams from around the world were nominated for their work to promote recycling and waste reduction, lower the environmental impact of our products and processes, and educate others on sustainability topics. Contributors to the 11 winning projects from seven countries received monetary awards and/or trophies. Their projects included achieving LEED certication for a 14-year-old building in Malaysia, using rain water in cooling towers in India, improving Intel’s internal data center efciency, conducting research to enable consumer electronic devices to operate in a low-power state, and eliminating sulfuric acid from a uoride treatment process. In addition to yielding environmental benets, these employee projects frequently save money for Intel. Estimated cost savings from all of the winning projects totaled $136 million. For example, employees in Ireland were able to reduce the number of lter changes needed on scanner tools used in our factories, saving some 350,000 gallons of water per year, along with over $500,000 related to waste reduction and improved productivity. To learn more about another winning project, see the Supply Chain section Chain section of this report.
35 Back
Next
Previous View
e n v I r o n m e n t A L
f A C t o r s
3 Letter From Our CEO overvIew
5 Corporate Prole 9 Strategy and Management Approach GovernAnCe And eConomIC fACtors
20 Financial Performance and Economic Impact Impac t 25 Governance, Ethics, and Public Policy Polic y envIronmentAL fACtors
32 32 ei ei Our Approach to Environmental Sustainability KeY Issues & PrIorItIes
> Climate Change and Energy Efciency Water Conservation Waste: Reduce, Reuse, Recycle Reducing Air Emissions Energy-Efcient Performance and Product Ecology Applying Technology to Environmental Challenges
oli Cii. To Cii. To increase awareness and engage employees in discussions about sustainability initiatives, in 2009 Intel launched an environmental employee portal and an interactive online employee community, “Green Intel.” Today, more than 1,600 employees are members of the community, where they can connect with local green teams and projects at their sites.
Ciy a Biiiy Ipac We are committed to collecting input from local communities about our environmental performance. Transparency and open communication guide our approach. Regular reports from our Arizona and Arizona and New Mexico Mexico commu community environmental groups, for example, are posted on our web site. In early 201 2011, 1, we launched la unched Explore Intel, Intel, a pilot interactive web site with real-time environmental reporting for our New Mexico operations. Our employees participate in environmentally focused volunteer projects in communities around the world, and a number of our education programs and competitions, such as the Intel International Science and Engineering Fair and the Intel + UC Berkeley Technology Entrepreneurship Challenge, encourage study and innovation on environmental sustainability topics. For more information, see the Contributions to Society Society and and Stakeholder Engagement sections Engagement sections of this report.
Performance Summary & Goals soCIAL fACtors
58 58 Workplace Workplace 79 79 Supply Supply Chain Chain 92 Contributions to Society Societ y APPendIx
11 1 11 About This Report/Approach to Assurance Assurance 112 1 12 GRI GRI Content Index Index 119 1 19 UN Global Compact— Communication on Progress Progress Access the Report Builder 2010 2010 Corporate Responsibility Report www.intel.com/go/responsibility
Climate Change and Energy Efciency We consider climate change an important environmental issue, and many years ago began taking steps to mitigate our impact and publicly report on our carbon footprint. Intel believes in a portfolio approach to emissions reduction and energy management. Through a wide variety of efforts—including but not limited to conservation, energy efciency, solar installations, green power purchases, and efcient building designs—Intel has built a strong and sustainable approach to buying and using energy in an economical and environmentally conscious manner. As part of our commitment to transparency, since 2003 we have disclosed our greenhouse gas emissions and climate change risk through the Carbon Disclosure Project (CDP). To view our public submissions, visit the CDP web CDP web site. In addition, the Intel Annual Report and Form 10-K includes 10-K includes a discussion of climate risk, and our Climate Change Policy outlines Policy outlines our formal position on global climate change.
rcig Gh Ga eii In 1996, Intel and other U.S. semiconductor manufacturers entered into a voluntary agreement with the U.S. Environmental Protection Agency (EPA) to reduce emissions of peruorocompounds (PFCs), materials used in semiconductor manufacturing that are known to have high global-warming potential. The agreement later expanded into a worldwide semiconductor
Based on analysis and mapping, we do not believe that any of our manufacturing or assembly and test operations operations are are located near or have direct impact on protected areas on the United Nations List of Protected Areas. Areas . Some of our operations are located in areas considered by some to be rich in biodiversity, but we know of no major negative impacts from our operations on threatened species or protected areas. In recent years, we have undertaken voluntary biodiversity efforts at our sites. For example, since 1994 Intel has been a sponsor of conservation measures to protect the River Rye, Rye, a tributary to the River Liffey in Ireland and an important salmon spawning ground. During the last decade, studies have indicated improvements in water quality and in salmon and brown trout density as a result of
In 2006, Intel joined the EPA’s Climate Leaders Leaders program, program, an industrygovernment partnership working to develop strategies to reduce overall climate change. In conjunction with the program, we set a goal to reduce Intel’s greenhouse gas emissions by 30% per unit of production from 2004
the restoration activities. The conservation area is also home to the whorl snail species, which appears on the Irish Red List published by the National Biodiversity Data Centre. Centre.
through 2010. As of the end of 2010, we had met our goal, having reduced emissions by approximately 45% below 2004 levels on a per chip basis. In 2007, Intel joined the Chicago Climate Exchange, Exchange, North North America’s only cap
industry agreement to reduce PFC emissions 10% below 1995 levels by 2010, representing what we believe is the world’s rst voluntary industry greenhouse-gas reduction commitment. In 2010, Intel met this goal, reducing PFC emissions 45% in absolute terms and over 80% on a per chip basis from the 1995 baseline.
36 Back
Next
Previous View
e n v I r o n m e n t A L
f A C t o r s
3 Letter From Our CEO overvIew
5 Corporate Prole 9 Strategy and Management Approach
nte s
mate mat e war warene eness ss
me ne Intel announces plans to increase its purchase of renewable energy credits to 2.5 billion kWh, equivalent to 85% of the company's projected 2011 U.S. energy use.
GovernAnCe And eConomIC fACtors
Intel announces plans for eight additional solar projects at our facilities in four U.S. states.
Intel leads industry initiative on PFC reduction with the first voluntary agreement to reduce global-warming gases. Intel starts public reporting of total energy use.
20 Financial Performance and Economic Impact Impac t 25 Governance, Ethics, and Public Policy Polic y
Intel becomes largest corporate purchaser of “green” power in the U.S. under U.S. EPA Green Power Partnership; sets new absolute emissions reduction goal; and founds Digital Energy Solutions Campaign.
Intel establishes energy conservation goal: average 4% per year reduction on a per chip basis.
envIronmentAL fACtors
32 32 ei ei Our Approach to Environmental Sustainability KeY Issues & PrIorItIes
PFC agreement adopted by World Semiconductor Council. Industry-wide goal set to reduce PFC emissions 10% below 1995 baseline by 2010.
Intel begins public environmental reporting.
> Climate Change and Energy Efciency Water Conservation Waste: Reduce, Reuse, Recycle Reducing Air Emissions Energy-Efcient Performance and Product Ecology Applying Technology to Environmental Challenges Performance Summary & Goals soCIAL fACtors
58 58 Workplace Workplace 79 79 Supply Supply Chain Chain 92 Contributions to Society Societ y APPendIx
11 1 11 About This Report/Approach to Assurance Assurance 112 1 12 GRI GRI Content Index Index 119 1 19 UN Global Compact— Communication on Progress Progress Access the Report Builder 2010 2010 Corporate Responsibility Report www.intel.com/go/responsibility
1994
1995
1996
Ahead of the Curve
1997
1998
CO2 emissions are regulated at Ireland site; Intel startsparticipating in European Union trading program.
Intel begins participating in Carbon Disclosure Project.
1999
2000
2001
2002
Intel joins U.S. EPA Climate Leaders program and commits to reduce per chip global-warming gases 30% from 2004 baseline by 2010.
2003
2004
2005
Intel joins Chicago Climate Exchange and co-founds Climate Savers
Intel founds Intel Open Energy Initiative.
Computing Initiative.
2006
2007
2008
2009
2010
2011
Driving Industry-Wide Continuous Improvement
Transparency and Disclosure
sic h i-1990, ha ak lay p a aggi gal c gh ga ii.
and trade system for six greenhouse gases. Members made a voluntary but legally binding commitment to reduce their aggregate emissions by 6% by 2010, compared to a baseline of average annual emissions from 1998
we completed a research paper, “Developing “ Developing an Overall CO2 Footprint for 1 Semiconductor Semiconduct or Products Products,”,” published by the IEEE IEEE,, which analyzed the Scope 3 impacts 3 impacts from our industry, including embe embedded dded CO2 in the supply
to 2001. After achieving these goals in 2010, both the Climate Leaders and Chicago Climate Exchange disbanded. We also continued our participation in the European Union Emissions Trading Scheme Scheme during during 2010.
chain. In this research, we primarily focused on activities that directly support manufacturing operations, and did not include potential impacts from other support operations or assess the embedded CO 2 impact from capital goods such as buildings or manufacturing equipment.
In 2008, we set a goal to reduce the absolute global-warming gas footprint from Intel operations 20% below 2007 levels by 2012. As of the end of 2010, we had reduced our absolute emissions more than 40% below 2007 levels. As greenhouse gas regulations emerge in the U.S. and elsewhere, we continue to evaluate ways to reduce emissions and work with regulators to ensure that new rules can achieve environmental goals while allowing semiconductor manufacturers the exibility they need to operate. We continue to engage in research to better understand our carbon footprint, so that we can best prioritize our reduction efforts. In 2009,
While the calculation of an overall CO2 footprint still contains many uncertainties, our research conrmed previous ndings that the largest CO2 impact from semiconductors comes from consumer use. Excluding product consumer use, semiconductor manufacturing has the greatest impact, accounting for approximately 60% of the CO 2 impact, with the balance attributable to logistics, supply chain, and commute and business travel. For additional information about our supply chain footprint, see the Supply Chain section Chain section of this report.
37 Back
Next
Previous View
©
2009 IEEE. Reprinted with permission.
1
e n v I r o n m e n t A L
f A C t o r s
3 Letter From Our CEO overvIew
5 Corporate Prole 9 Strategy and Management Approach GovernAnCe And eConomIC fACtors
20 Financial Performance and Economic Impact Impac t 25 Governance, Ethics, and Public Policy Polic y envIronmentAL fACtors
32 32 ei ei Our Approach to Environmental Sustainability KeY Issues & PrIorItIes
> Climate Change and Energy Efciency Water Conservation Waste: Reduce, Reuse, Recycle Reducing Air Emissions
Performance Summary & Goals soCIAL fACtors
58 58 Workplace Workplace 79 79 Supply Supply Chain Chain 92 Contributions to Society Societ y APPendIx
11 1 11 About This Report/Approach to Assurance Assurance 112 1 12 GRI GRI Content Index Index 119 1 19 UN Global Compact— Communication on Progress Progress Access the Report Builder 2010 2010 Corporate Responsibility Report www.intel.com/go/responsibility
scp
80
4.0
eii1
Scope 1 Emissions 3.5 ) e 2 O C t 3.0 M M ( t n e l a 2.5 v i u q E 2 O 2.0 C f o s n o 1.5 T c i r t e M n 1.0 o i l l i M 0.5
60
2.8
2.8 2.8
50
40
1.9 30
1.5 1.5
0.2
20
0.2 0.2 1.0
0.1
0.9
0.4 2007
) 0 0 1 = 0 0 0 2 r a e Y ( x e d n I n o i t c u d o r P d e z i l a m r o N
2008
2009
660,000
Scope 2 Emissions Total Scope 1 and 2 Emissions (excluding RECs)
1,460,000 3,120,000
Total Scope 1 and 2 Emissions (including RECs)
2,120,000
Scope 3 Emissions (estimated) • D Diirect materials supplier emissions • Transportation and distribution of inputs and waste generated in operations • Us U se of goods and services sold • Business travel
0.1
0.7
2006
10
n
2
70
Energy-Efcient Performance and Product Ecology Applying Technology to Environmental Challenges
2010 Gh Ga eii rp by typ
Greenhouse Gas Emissions
1,000,000 500,000 42,000,000 95,000
Reported in metric to ns of CO2e Including RECs
1 2
0.5
2010
rla Lik: World Resources Institute (WRI) Global Greenhouse Gas Protocol (GHG Protocol) Mobile Combustion CO2 Emissions Calculation Tool
Energy
Perfluorocompounds Perfluorocompo unds (PFCs)
GHG Protocol CO2 Emissions from Business Travel Tool
Other Greenhouse Gases
Greenhouse Gas Emissions—Normalized
Inventory of Greenhouse Gas Emissions and Sinks: 1990–2004
Il’ abl scp 1 a scp 2 ii p 3% i 2010 cpa 2009, hil ii a p chip bai 17%. o pcha abl gy ci (reC) cib h igica ca i abl ii 2007 2008. th reC l i a ci appialy 1 illi mmCo 2 i scp 2 ii 2008 hgh 2010. th abl hi pag h ii aa ih a ih akig i acc reC pcha. I 2010, reC pcha p appialy 51% u.s. gy .
I aii h ay aa pi ab, a ail bak a ici ii by cy a by yp i aailabl i pblicly aailabl CdP p. p. n ha ligh aiai b aa i hi p a al CdP lig ay i, aiial aa ci llig pblicai hi p.
38 Back
Next
Previous View
e n v I r o n m e n t A L
f A C t o r s
3 Letter From Our CEO overvIew
5 Corporate Prole 9 Strategy and Management Approach GovernAnCe And eConomIC fACtors
20 Financial Performance and Economic Impact Impac t
Intel’s Carbon Footprint Breakdown of Intel Scope 1, 2, 3 Emissions: 46 Million Metric Tons of CO2
2.2%
0.2% 4.6%
1.1%
Equivalent (MMtCO 2e)
25 Governance, Ethics, and Public Policy Polic y envIronmentAL fACtors
32 32 ei ei Our Approach to Environmental Sustainability
92%
KeY Issues & PrIorItIes
Products
Business Air Travel
> Climate Change and Energy
Operations
Supply Chain
Efciency Water Conservation Waste: Reduce, Reuse, Recycle
Transportation and Logistics
Guadalajara, Mexico, to identify new opportunities to reduce energy use. Breakdown of Intel Operations: 2.1 MMtCO2e 0.1%
Reducing Air Emissions
Energy Use
6.4% 9.4%
6
Energy-Efcient Performance and Product Ecology Applying Technology to Environmental Challenges
5
24.8%
soCIAL fACtors Electricity PFCs
Natural Gas Diesel
Other Chemicals
92 Contributions to Society Societ y APPendIx
11 1 11 About This Report/Approach to Assurance Assurance 112 1 12 GRI GRI Content Index Index 119 1 19 UN Global Compact— Communication on Progress Progress Access the Report Builder 2010 2010 Corporate Responsibility Report www.intel.com/go/responsibility
120
1.0
1.0
59.3%
Performance Summary & Goals
58 58 Workplace Workplace 79 79 Supply Supply Chain Chain
egy cai pjc. In pjc. In 2010, we continued to allocate funds for resource conservation and efciency projects aimed at reducing energy use in our operations. Projects included installation of more efcient lighting and smart system controls; boiler and chilled water system improvements; and cleanroom heating, ventilation, air conditioning, and heat recovery improvements. Since 2001, Intel has invested more than $45 million and completed over 1,500 projects, saving more than 790 million kilowatt-hours (kWh) of energy, or the approximate CO 2 emissions from the electricity use of more than 69,000 average U.S. homes for one year1. These investments have enabled Intel to reduce energy costs by an average of approximately $23 million per year. In the rst half of 2011, we approved an additional $13 million for energy-efciency and resource conservation projects. We will also run two smart-building pilots: one at our assembly and test facility in Costa Rica, and one at our design center in
egy-eci opai egy-eci Many of the major trends in semiconductor manufacturing inherently improve energy efciency. For example, the industry’s move from 200mm to 300mm wafers increased manufacturing energy efciency by about 20%, primarily because more chips could be produced at a time. The trend toward smaller chips, such as the Intel® Atom™ processor, generates savings for similar reasons, as do advancements through Moore’s Law that Law that enable the sizes of features on chips to shrink over time.
s r u 4 o H t t a 3 w o l i K n o i l 2 l i B
110
1.0 0.9
0.9 100
90
4.8
4.7
4.6
4.2
4.3
1
80
70
) 0 0 1 = 0 0 0 2 r a e Y ( x e d n I n o i t c u d o r P d e z i l a m r o N
2006
2007
2008
2009
2 20 010
Natural Gas
Electricity
Diesel
Energy Use—Normalized
I 2010, gy i pai ica 2% 2009 a abl bai a ca 24% a p chip bai. th igica ica i h 2009 p chip
g a piaily l aacig ll.
39
Source: U.S. EPA Green Power Equivalency Calculator. Calculator.
1
Back
Next
Previous View
e n v I r o n m e n t A L
f A C t o r s
3 Letter From Our CEO overvIew
5 Corporate Prole 9 Strategy and Management Approach GovernAnCe And eConomIC fACtors
20 Financial Performance and Economic Impact Impac t 25 Governance, Ethics, and Public Policy Polic y envIronmentAL fACtors
32 32 ei ei Our Approach to Environmental Sustainability KeY Issues & PrIorItIes
> Climate Change and Energy Efciency Water Conservation Waste: Reduce, Reuse, Recycle Reducing Air Emissions Energy-Efcient Performance and Product Ecology Applying Technology to Environmental Challenges Performance Summary & Goals soCIAL fACtors
58 58 Workplace Workplace 79 79 Supply Supply Chain Chain 92 Contributions to Society Societ y APPendIx
11 1 11 About This Report/Approach to Assurance Assurance 112 1 12 GRI GRI Content Index Index 119 1 19 UN Global Compact— Communication on Progress Progress Access the Report Builder 2010 2010 Corporate Responsibility Report www.intel.com/go/responsibility
rl-lig Iai tchlgy (It) saiabiliy. saiabiliy. Intel Intel IT’s Sustainability Framework uses data center, compute, and ofce infrastructure, as well as our client compute offerings, to collectively contribute to Intel’s emissions reduction goal. Our IT organization has met growing computing demands while reducing Intel’s consumption of IT-related and ofce energy—resulting in energy cost savings of $5.8 million in 2010 (up from $4 million in 2009) and the avoidance of more than 60,000 metric tons of CO2 emissions.1 In recognition of Intel IT’s sustainability achievements, Intel was named to Computerworld’s 2010 list of “Top Green-IT Organizations.”.” Organizations Intel IT recently developed an innovative application that analyzes server utilization, enabling us to substantially reduce the number of servers used in our design operations. The reduction in servers reduced energy consumption by more than 8 million kWh, saving $645,000 in energy costs, avoiding 4,200 metric tons of CO2 emissions, and earning Intel an InfoWorld 2010 Green 15 Award for Award for the second year in a row. Our data center engineering team also worked with 80 Intel data center managers and facilities engineers to implement Intel IT’s energy-efciency methodology across methodology across Intel data centers in 20 locations. The team’s work on more than 75 sustainability-focused projects saved 9 million kWh of energy, reduced energy costs by approximately $700,000, and enabled us to avoid the release of 4,800 metric tons of CO2 emissions. We also signicantly reduced our server footprint in 2010 by 28,000 metric tons of CO2 emissions, by executing to our four-year server refresh policy and implementing virtualization technologies. Over the past two years, Intel IT has been able to balance reduction with incremental demand and reduce our IT-related CO2 footprint by 10%.
“ Intel’s REC purchases, support for solar installations, and other clean energy investments will continue to be priorities for us as we search for effective sustainability opportunities around the globe.” Brian Krzanich, Senior Vice President and General Manager, Manufacturing and Supply Chain
In 2010, we more than tripled the number of Intel meeting rooms with videoconferencing capabilities, including the addition of videoconferencing rooms in 11 new countries. We estimate that videoconferencing saved employees 57,000 hours of travel time in 2010—a 27% increase over 2009—and saved Intel more than $26 million in travel expenses. In addition, the reduction in travel helped prevent the release of 22,500 metric tons of CO2 emissions. To read more about our IT group’s efforts to reduce Intel’s energy use, read the Intel IT Performance Report 2010–2011 and 2010–2011 and access videos and case studies studies..
Iig i rabl P Since 2008, Intel has been the largest voluntary purchaser of green power in the U.S., under the U.S. EPA’s Green Power Partnership program. We initially committed to purchase renewable energy credits (RECs) to support the generation of more than 1.3 billion kWh per year as part of a multi-year contract. That purchase placed Intel at the top of the Green Power Partnership’s “National Top 25” and “Fortune 500 Challenge” lists. In January 2010, 2010, we incr increased eased our purchase commit commitment ment by by 10%, 10%, to oover ver 1 1.43 .43 billion kWh of RECs per year—equivalent to 51% of our projected annual U.S. electricity use. For our actions, and leadership, Intel received an EPA Green Power Partner of the Year Award in 2010, the third year in a row. In February 2011, we announced that Intel would increase its REC purchase for 2011 to 2.5 billion kWh—equivalent to approximately 85% of our projected 2011 U.S. energy use—a 75% increase over our 2010 purchase. According to the EPA, our purchase commitment—which includes a portfolio of wind, solar, small hydroelectric, geothermal, and biomass sources—has the equivalent environmental impact of eliminating the carbon dioxide emissions from the annual electricity use of nearly 218,000 average American homes or nearly 202 million gallons of gasoline consumed1. Intel’s renewable energy efforts are intended to provide leadership and help spur
40
Includes savings from direct IT hardware energy-saving projects (i.e., server refresh, video conferencing, and other projects). Source: U.S. EPA Green Power Equivalency Calculator and World Resources Institute (WRI) commercial travel assumptions.
1
Back
Next
Previous View
2
e n v I r o n m e n t A L
f A C t o r s
3 Letter From Our CEO overvIew
5 Corporate Prole 9 Strategy and Management Approach GovernAnCe And eConomIC fACtors
20 Financial Performance and Economic Impact Impac t 25 Governance, Ethics, and Public Policy Polic y envIronmentAL fACtors
32 32 ei ei Our Approach to Environmental Sustainability KeY Issues & PrIorItIes
> Climate Change and Energy Efciency Water Conservation Waste: Reduce, Reuse, Recycle Reducing Air Emissions Energy-Efcient Performance and Product Ecology Applying Technology to Environmental Challenges Performance Summary & Goals soCIAL fACtors
58 58 Workplace Workplace 79 79 Supply Supply Chain Chain 92 Contributions to Society Societ y APPendIx
11 1 11 About This Report/Approach to Assurance Assurance 112 1 12 GRI GRI Content Index Index 119 1 19 UN Global Compact— Communication on Progress Progress Access the Report Builder 2010 2010 Corporate Responsibility Report www.intel.com/go/responsibility
the market and make renewables cheaper and more accessible over the long-term to reduce the overall carbon emissions from electricity generation. Intel’s 2011 REC purchase will be handled by Sterling Planet Planet,, a supplier of renewable energy, energy-efcient, and low-carbon solutions in the U.S. All purchases will be certied by the nonprot Center for Resource Solutions’ Green-e* program program,, which certies and veries green power products in order to meet the requirements of the EPA’s Green Power Purchasing Program. sla Iallai. Iallai. In 2010, we partnered with third parties to complete nine solar electric installations at Intel locations in Arizona, California, New Mexico, Oregon, and Israel—collectively generating more than 3.8 million kWh per year of clean solar energy. The projects include a 1-megawatt solar eld that spans nearly six acres of land on Intel’s Folsom, California campus; four rooftop installations; and four solar support structures in Intel parking lots. Each of the U.S. installations, which were completed and are operated by SolarCity, currently ranks among the 10 largest solar installations in its respective utility territory. The RECs generated by these installations are typically transferred to the local utility to support their regulatory obligations and programs. In addition to these new installations, we had previously installed solar energy systems in India, New Mexico, and Oregon. Solar hot water systems in India now supply nearly 100% of the hot water used at our two largest campuses in that country, saving approximately 70,000 kWh annually. Clach I I . . Intel Intel Capital, Intel’s global investment organization, has invested more than $150 million in the solar energy sector since 2008 to accelerate innovation in 20 start-up companies that are developing alternative power sources. In September 2010, Intel Capital announced new investments in investments in intelligent grid software and services to support IT and data center efciency.
Ipig Pc egy ecicy As noted in the Intel Product Life Cycle and Value Chain illustration earlier in this section, consumer use of our products represents the largest portion of our overall carbon footprint. As a result, we have invested signicant resources in recent years to drive higher levels of energy efciency in our products. For a detailed discussion, see “Energy-Efcient “Energy-Efcient Performance and Product Ecology.” Ecology.”
Clia Lahip Aciii a Pblic Plicy According to Gartner Research, about 2% of the world’s emissions come from the information and communications technology (ICT) industry. In addition to the need to drive greater computing-related energy efciency, the ICT industry has an important role to play in reducing “the other 98%” of global emissions. The “Smart “ Smart 2020: Enabling the Low Carbon Economy in the Information Age” Age” report, published in 2008 by The Climate Group and the Global e-Sustainability Initiative, estimated that the ICT sector could reduce up to 15% of business-as-usual emissions globally by 2020. A follow-up report put the potential reduction in the U.S. even higher—to as much as 22% by 2020. Intel collaborates on initiatives with multiple stakeholders to reduce ICT-related emissions, and to identify ways that the ICT industry can help reduce energy consumption and carbon emissions across other sectors of the global economy. egy sa. In sa. In the 1990s, Intel worked with the U.S. EPA to develop energy-efciency standards. Since 2005, that work with the Energy Star* program and the EPA has included helping to establish product, data center (buildings), and alternative energy specications. In 2009, Intel extended collaboration on product energy efciency by helping to establish the Energy Star Program Requirements for Computers Version 5.0 specica5.0 specication, which denes a transition to monitoring energy consumption instead of power levels, and the Energy Star Program Requirements for Computer Servers specication, Servers specication, which establishes energy standards for servers in addition to promoting power management techniques. We also helped author industry implementation guidelines.
41 Back
Next
Previous View
e n v I r o n m e n t A L
f A C t o r s
3 Letter From Our CEO overvIew
5 Corporate Prole 9 Strategy and Management Approach GovernAnCe And eConomIC fACtors
20 Financial Performance and Economic Impact Impac t 25 Governance, Ethics, and Public Policy Polic y envIronmentAL fACtors
32 32 ei ei Our Approach to Environmental Sustainability KeY Issues & PrIorItIes
> Climate Change and Energy Efciency Water Conservation Waste: Reduce, Reuse, Recycle Reducing Air Emissions Energy-Efcient Performance and Product Ecology Applying Technology to Environmental Challenges Performance Summary & Goals soCIAL fACtors
58 58 Workplace Workplace 79 79 Supply Supply Chain Chain 92 Contributions to Society Societ y APPendIx
11 1 11 About This Report/Approach to Assurance Assurance
Intel works with worldwide agencies to establish methodologies common to Energy Star for energy-efciency policies in different regions. For example, we provide technical insight on Energy Star test methods for energy-efciency programs in Australia, China, Europe, India, and Japan. Harmonization on product energy metrics allows the industry to focus on technology advancement instead of chasing divergent evaluation methods. Intel is currently working with industry stakeholders and the Standard Performance Evaluation Corporation (SPEC) to develop energy-efcient performance tools for servers that could be used in Energy Star and other programs. Clia sa Cpig Iiiai (CsCI). Intel, (CsCI). Intel, Google, and the World Wildlife Fund jointly launched CSCI CSCI in in June 2007, with the goal of building awareness and encouraging the use of more efcient components and power management features to reduce computer-related CO 2 emissions. The initiative is unique in that it unites industry, consumers, government, and conservation organizations—securing commitments from manufacturers to produce and sell more energy-efcient products and encouraging consumers to purchase computers with better efciencies. At the end of 2010, CSCI had more than 650 members in 53 countries. Members take a leadership role in deploying smarter computing practices and improving the energy efciency of their computing eets, and thereby eliminating signicant energy waste and carbon emissions. In July 2010, CSCI announced that through collective industry industry efforts, the IT sector has reduced annual CO2 emissions by 32 million metric tons since 2007. To help drive further reductions, CSCI has expanded its charter to improve network device and infrastructure efciency. Intel also helped launch CSCI in India, India, with a goal of cutting computer power consumption in half and avoiding 4 million metric tons of greenhouse gas emissions by 2012.
112 1 12 GRI GRI Content Index Index 119 1 19 UN Global Compact— Communication on Progress Progress
Through the Digital Energy Solutions Campaign, Intel collaborates with other ICT companies, NGOs,
Access the Report Builder 2010 2010 Corporate Responsibility Report www.intel.com/go/responsibility
and trade associations to promote the adoption of public policies that enable ICT to realize its full potential to drive improvements
digial egy sli Capaig (desC). Intel (desC). Intel founded and cochairs DESC DESC,, a coalition of ICT companies, non-governmental organizations (NGOs), and trade associations dedicated to promoting adoption of public policies that will enable ICT to realize its full potential to improve societal energy efciency and reduce carbon emissions. DESC advocates directly with government leaders and through public education, workshops, and targeted research. In 2009, Intel also helped launch DESC in India, India, and in 2010, the group released a white paper paper outlining outlining ICT-related opportunities to help India achieve its climate goals. A chapter of DESC also was founded in 2010 in China and China and includes more than a dozen members. DESC China and DESC India engage with their respective governments to identify ways that ICT can help address climate change via improved energy efciency. Il op egy Iiiai. Founded Iiiai. Founded in 2009, the Intel Open Energy Initiative aligns Initiative aligns and mobilizes Intel and its partners around the application of technology and open standards to accelerate the global transition to smart energy. Specically, Intel is working to accelerate the integration of and synergy between intelligent renewable energy sources, smart grids, smart buildings, and empowered energy consumers. Intel’s actions include: policy inuence; collaboration in relevant government programs, standards bodies, consortia, and coalitions; partnerships with utilities on energy efciency and smart grid programs; and strategic investments via Intel Capital. th G Gi. Intel Gi. Intel serves on the board of the Green Grid Grid,, a global consortium 2007 made up of companies dedicated to energy efciency infounded businessincomputing ecosystems. The Green Grid provides industry-wide recommendations on best practices, metrics, and technologies to improve overall data center energy efciency. Recent Green Grid activities include creating sustainability metrics for data centers around carbon and carbon and water water usage usage effectiveness, with Intel representatives serving as key contributors and editors.
in energy efciency and reduce emissions.
42 Back
Next
Previous View
e n v I r o n m e n t A L
f A C t o r s
3 Letter From Our CEO overvIew
Water Conservation
5 Corporate Prole 9 Strategy and Management Approach
We continue to focus on sustainable water management at our sites worldwide, to meet our business needs as well as
GovernAnCe And eConomIC fACtors
20 Financial Performance and Economic Impact Impac t
those of our communities. We consider efcient and environmentally sound water management throughout all stages of our operations, including reviewing access to sustainable water sources as a criterion when selecting a site for an Intel facility. Water and energy experts at our locations around the world help us manage and research opportunities for reductions, such as incorporating water conservation elements into the design of our facilities and establishing specic water goals for new process technologies. We also work to understand the potential impact of our water use at the community level,
25 Governance, Ethics, and Public Policy Polic y envIronmentAL fACtors
32 32 ei ei Our Approach to Environmental Sustainability KeY Issues & PrIorItIes
Climate Change and Energy Efciency > Water Conservation Waste: Reduce, Reuse, Recycle
and engage in discussions about responsible water use and the human right to water. For more information about our commitment to water conservation and responsible water management, read the Intel Water Policy.
Reducing Air Emissions
Iig i rpibl wa maag
Energy-Efcient Performance and Product Ecology
Since 1998, we have invested more than $100 million in water conservation programs at our global facilities. To date, our comprehensive and aggressive efforts have saved nearly 40 billion gallons of water—enough for roughly 370,000 U.S. homes for an entire year1. We estimate that it takes 16 gallons of water to produce a single chip 2; by comparison, producing one pair of jeans takes 2,900 gallons, one hamburger takes 634 gallons, and one cup of tea takes 9 gallons 3.
Applying Technology to Environmental Challenges Performance Summary & Goals soCIAL fACtors
58 58 Workplace Workplace 79 79 Supply Supply Chain Chain 92 Contributions to Society Societ y
Over time, we have improved the efciency of the process used to create the ultra-pure water (UPW) required to clean silicon wafers during fabrication. In the past, we needed almost 2 gallons of water to make 1 gallon of UPW, but today we can make 1 gallon of UPW from between 1.25 and 1.5 gallons of water. After we use UPW to clean wafers, the water is suitable for industrial purposes, irrigation, and many other needs. Our factories are equipped with complex rinse-water collection systems, with separate drains for collecting lightly contaminated wastewater for reuse. With this
APPendIx
11 1 11 About This Report/Approach to Assurance Assurance 112 1 12 GRI GRI Content Index Index 119 1 19 UN Global Compact— Communication on Progress Progress Access the Report Builder 2010 2010 Corporate Responsibility Report www.intel.com/go/responsibility
Equivalency estimate based on information from the U.S. the U.S. Environmental Protection Agency Ofce of Water.
1
reuse strategy, we harvest as much water from our manufacturing processes as possible and direct it to equipment such as cooling towers and scrubbers. In addition, at some of our locations, we have arrangements to take back gray water from local municipal water treatment operations for use at our campuses. In 2010, we internally recycled approximately 2 billion gallons of water, equivalent to 25% of our total water withdrawals for the year. While our ultimate vision is to achieve the continuous reuse of water in semiconductor manufacturing, we currently discharge water from our operations in compliance with local permits. In 2010, we sent an estimated 80% of the water used at our sites back to municipal water treatment operations, where it could be treated for reuse for irrigation or other purposes in the community or returned to the water source. The balance was lost to evaporation (roughly 20% of incoming supply, or 1.4 billion gallons). Our water discharge methods vary by site, based on the needs of the community. While we work with local water management agencies to determine different solutions for each manufacturing location, we establish wastewater goals for each element based on the site with the most stringent standards. For example, if a particular element is most stringently regulated in Oregon, we will apply Oregon’s standard across all of our other manufacturing sites worldwide. To set our goals, we complete a comprehensive review for each element based on a number of aspects, including but not limited to permit limits for our sites and municipal treatment plants, activated sludge inhibition criteria, receiving stream water quality, and sludge protection. We use a number of key tenets derived from the U.S. Clean Water Act to guide our actions globally, including never causing pass-through or interference at local municipal treatment plants or impacting their ability to reuse their wastewater or sludge. In recognition of our proactive approach to goal setting, wastewater discharge, and related policies, we presented at a March 2011 regional training conference of the Pacic Northwest Clean Water Association in the U.S. for municipal wastewater operators and regulators.
Based on our estimated S cope 1, 2, and 3 water use. References to “per chip” assume a typical chip size of 1 cm2, but actual chips vary in size depending on the specic product. Note that in our 2009 report, we reported an estimated 12 gallons per chip. For this year’s report, we recalculated our per chip water use to exclude the impact from renewable energy credit purchases in order to be more conservative in our estimate. 3 Source: Water Footprint Network Network..
2
43 Back
Next
Previous View
e n v I r o n m e n t A L
f A C t o r s
3 Letter From Our CEO overvIew
5 Corporate Prole
wa fpi Aalyi
9 Strategy and Management Approach
Universally accepted step-by-step instructions on how to calculate a water footprint are not yet available, but in 2009 we drew on a number of emerging frameworks and research to complete a detailed water footprint
GovernAnCe And eConomIC fACtors
1
25 Governance, Ethics, and Public Policy Polic y envIronmentAL fACtors
32 32 ei ei Our Approach to Environmental Sustainability KeY Issues & PrIorItIes
Climate Change and Energy Efciency > Water Conservation Waste: Reduce, Reuse, Recycle Reducing Air Emissions Energy-Efcient Performance and Product Ecology
©
2010 IEEE. Reprinted with permission from “Performing a Water Footprint Assessment for a Semiconductor Industry.”
1
Applying Technology to Environmental Challenges
10
8.1
8
assessment . Our ndings suggested that the largest impact on water use (66%) was from our direct operations, the area where we have historically focused our water conservation investments and where we have achieved signicant savings to date. Recent studies and publications have found a direct correlation between water consumption and the production of electricity—referred to as the “energy-water nexus.” In our 2009 water footprint assessment, we found that water associated with our energy use and generation represented our second largest use of water. We also completed an initial estimate of water use related to direct materials suppliers that provide the raw materials (such as chemicals, wafers, and gases) used in our manufacturing process. This supplier consumption represented the smallest portion of our total water use.
20 Financial Performance and Economic Impact Impac t
Water Withdrawals for Operations Use
7.7
7.5
7.7
7.9
2006
2007
2008
2009
a r e Y ( x e 90 d n I n o i t 80 c u d o r P d 70 e z i l a m r o N
s n o l l 6 a G f o s n o 4 i l l i B 2
Water Use
) 0 110 0 1 = 9 9 9 100 1
2010
Water Use—Normalized
w ha a gal c a p chip bl 2007 ll by 2012. I 2010, a ica 3% 2009 ll a abl bai, a ca 23% a p chip bai. th pik i h 2009 p chip g a i pa l aacig ll la cic cii.
Intel’s Operational Water Footprint
Performance Summary & Goals m iaga l aiial iai.
soCIAL fACtors
Evaporative Loss (Estimated)
58 58 Workplace Workplace 79 79 Supply Supply Chain Chain
1.4 Billion
92 Contributions to Society Societ y APPendIx
11 1 11 About This Report/Approach to Assurance Assurance
Water Supply
8.1 Billion
210 Million
13 Million
Intel Operations
6.7 Billion
(Scope 1)
0.89 Billion1
Water Discharge
0.4 Billion
0. 52 B i l l i o n
5.8 Bil lion
Irrigation
Groundwater Recharge
Replenish Water Sources
2 Billion
112 1 12 GRI GRI Content Index Index 119 1 19 UN Global Compact— Communication on Progress Progress
Energy Providers
Tier 1 Suppliers
(Scope 2)
(Scope 3)
1
Reclaimed water from the municipal water treatment operations in Chandler, Arizona for use at our site. This amount includes 450 million gallons in our manufacturing operations, such as in cooling towers
Access the Report Builder 2010 2010 Corporate Responsibility Report www.intel.com/go/responsibility
and air scrubbers, and 440 million gallons by a farmer who we lease land to on our campus in order to help control soil erosion and dust. Note that the 0.89 billion gallons is not additive to irrigation, recharge, or replenishment because this water comes from non-Intel discharges to the municipal water treatment facility. Intel worked with the City of Chandler to fund construction of a reverse osmosis facility, which s ince 1996 has resulted in over 4.5 billion gallons of water being put back into the aquifer. This strategy supports a key Chandler effort to store water in the underground aquifer to assure that the needs of local citizens and businesses are met for many years to come.
2
44 Back
Next
Previous View
e n v I r o n m e n t A L
f A C t o r s
3 Letter From Our CEO overvIew
In early 2011, we began work on a follow-up study, partnering with Quantis Quantis 1 on a new IEEE paper to further analyze and test assumptions related to our Scope 2 and Scope 32 water use. Since a number of our operations are located in arid regions—including China, Israel, Arizona, and New Mexico— one of the areas we focused on was completing a “water equivalency” analysis, which adjusts total water use by site based on the location’s water stress level and incorporates more qualitative impacts related to human health. In addition, water impact associated with the product use phase was added to the assessment.
5 Corporate Prole 9 Strategy and Management Approach GovernAnCe And eConomIC fACtors
20 Financial Performance and Economic Impact Impac t 25 Governance, Ethics, and Public Policy Polic y envIronmentAL fACtors
32 32 ei ei
In this new study, we found that water use associated with manufacturing energy use and our direct suppliers was lower than in the rst analysis. Water related to manufacturing energy use accounted for 2.58%, and our direct supplier footprint accounted for less than 1% of our operational
Our Approach to Environmental Sustainability KeY Issues & PrIorItIes
Climate Change and Energy Efciency > Water Conservation Waste: Reduce, Reuse, Recycle
water footprint. In addition, the study found that greatest absolute water use were not necessarily the our sitessites withwith the the highest potential impact. Finally, water use associated with electricity used in the consumer-use phase of our products was signicant, representing close to 100% of Intel’s overall water footprint (with the balance in operations, electricity use, and supply chain). This nding indicated that Intel’s continued focus on driving energy-efcient performance in our products has a critical role to play in helping to reduce our overall water footprint. Future research on water-related impacts from the product-use phase could help to identify new opportunities to reduce impact and improve the quality of
Reducing Air Emissions Energy-Efcient Performance and Product Ecology Applying Technology to Environmental Challenges Performance Summary & Goals soCIAL fACtors
water footprinting in the semiconductor industry and beyond.
58 58 Workplace Workplace 79 79 Supply Supply Chain Chain 92 Contributions to Society Societ y
In light of the ndings on the energy and water connection in the product-use phase, Intel’s continued focus on driving energy-efcient performance in our products has a critical role to play in helping to reduce our overall water footprint.
APPendIx
11 1 11 About This Report/Approach to Assurance Assurance 112 1 12 GRI GRI Content Index Index 119 1 19 UN Global Compact— Communication on Progress Progress
Comparison of Water Inventory and Water Stress Assessment by Location 5,761
Ronier Acres, OR
43 5,526
Rio Rancho, NM
1,589
Ocotillio, AZ
1,563
5,435 3,770
Leixlip, Ireland
34 2,422
Dalian, China1
696
Qiryat-Gat, Israel
696
2,422 1,052
Penang, Malaysia
33
Aloha, OR
7
Hudson, MA
31
Kulim, Malaysia
26
908 874 836 579 166
Santa Clara, CA
579
Chengdu, China
4
Ho Chi Minh City2
579 153
Chandler, AZ
511 147 477
San Jose, Costa Rica
8 439 126
Folsom, CA
68 20
Bangalore, India 0
2,000
4,000
6000
Water inventory: x103 m3 of water Simplified water stress assessment: x103 m3 of water equivalent Water usage for the Dalian site i s taken to equal that of Qiryat-Gat.
1
2
Water usage for the Ho Chi Minh City site is taken to equal that of Chengdu.
th p ba h al cbic a a ach i i 2010. th b ba h a “qial a” g aj h a h lcai ig qaliai ac. thi aalyi c ha hl piiiz a i a p ai lcai: n mic, Aiza, Ial, a Chia.
Access the Report Builder 2010 2010 Corporate Responsibility Report www.intel.com/go/responsibility 1
©
45
2011 IEEE. Reprinted with permission from A Semiconductor Company s Examination of Its Water Footprint Approach.” Scope 2 rela tes to water use associated with our energy use. Scope 3 relates to water use associated with our direct suppliers and also the consumer product-use phase.
2
Back
Next
Previous View
e n v I r o n m e n t A L
f A C t o r s
3 Letter From Our CEO overvIew
5 Corporate Prole
Lcal wa u a Ipac
9 Strategy and Management Approach
In addition to taking internal actions, we partner with others to address sustainable water issues at the local level. For example, in Arizona we partnered with the City of Chandler to implement a progressive water
GovernAnCe And eConomIC fACtors
20 Financial Performance and Economic Impact Impac t 25 Governance, Ethics, and Public Policy Polic y envIronmentAL fACtors
32 32 ei ei Our Approach to Environmental Sustainability KeY Issues & PrIorItIes
Climate Change and Energy Efciency > Water Conservation Waste: Reduce, Reuse, Recycle Reducing Air Emissions Energy-Efcient Performance and Product Ecology Applying Technology to Environmental Challenges Performance Summary & Goals soCIAL fACtors
58 58 Workplace Workplace 79 79 Supply Supply Chain Chain
management system that has reduced Intel Arizona’s daily water demand by up to 75%. In Israel, we partnered with Numonyx B.V. to install a $20 million advanced membrane bioreactor (MBR) to treat wastewater from our factory. MBR efuent is extremely clean and suitable for reuse, including in agriculturall irrigation. agricultura At our new wafer fabrication facility in Dalian, China, which opened in late 2010, we have incorporated processes and systems that we estimate will save 68 million gallons of city water per year. At our sites in India, through our water treatment and reuse plan, we currently recapture and reuse 100% of the water that we would otherwise discharge as wastewater; we further capture stormwater for use in our cooling towers. In 2003, our Hudson, Massachusetts site established a $1.5 million Intel Assabet Groundwater Recharge Fund to support projects that help replenish the nearby river and its tributaries. Grants are awarded each year to municipalities and nonprot organizations up to a project maximum of $500,000. By the end of 2010, more than $773,000 in grants had been established for projects that collectively redirect water and recharge aquifers—instead of losing it to runoff or stormwater systems. In 2011, an additional $300,000 grant will be used to fund a groundwater recharge project at a local school.
92 Contributions to Society Societ y APPendIx
11 1 11 About This Report/Approach to Assurance Assurance 112 1 12 GRI GRI Content Index Index 119 1 19 UN Global Compact— Communication on Progress Progress Access the Report Builder 2010 2010 Corporate Responsibility Report www.intel.com/go/responsibility
At our sites in India, through our water treatment and reuse plan, we currently capture and reuse 100% of the water that we would otherwise discharge as wastewater.
In 2010, Intel funded a pilot with the Bonneville Environmental Foundation to purchase water restoration certicates (WRCs) in Oregon, and to explore opportunities related to WRCs in the southwestern U.S. WRCs are voluntary, market-based mechanisms that provide economic incentives for water rights holders to leave water (that they would otherwise use) in critically dewatered ecosystems.
Cllabai Cllaba i a oppiy We regularly benchmark our performance on water use and reuse with other semiconductor companies to identify and share best practices. We actively participate in environmental performance benchmarking activities with other members of the World Semiconductor Council (WSC), Council (WSC), the Semiconductor Industry Association (SIA), Association (SIA), and the International SEMATECH SEMATECH Manufacturing Initiative (ISMI), Initiative (ISMI), which enable us to better understand how Intel compares to others in the semiconductor industry on total normalized water and UPW use. In 2010, Intel was included in a benchmark report on report on water reporting and risk disclosure published by CERES, receiving the second highest score in our sector. Intel is a founding member of the Washington, D.C.-based Water Innovations Alliance, an Alliance, an industry association that focuses on developing funding, reducing regulatory barriers, increasing collaboration, and raising awareness of cutting-edge water technologies and the problems they address. As water resources become more constrained, the need for technologies that promote water conservation is likely to grow and may present a business opportunity for Intel. For more information, see “Applying “Applying Technology to Environmental Challenges.” Challenges.” In 2011, Intel will also participate in the development of the Global Environmental Management Initiative (GEMI) Initiative (GEMI) Local Water Tool, which when completed will be a free, publically available tool to help companies understand their local water challenges.
46 Back
Next
Previous View
e n v I r o n m e n t A L
f A C t o r s
3 Letter From Our CEO overvIew
5 Corporate Prole
Lcal wa u daa
9 Strategy and Management Approach
The following table details the fresh-water sources for our larger sites around the world. However, most of the water that we use in our operations is returned to the local water system. As mentioned above, approximately 80% of the water used at our sites is sent back to municipal water treatment operations, where it is treated so that it can be reused for other purposes. See our water footprint diagram diagram for for additional details.
GovernAnCe And eConomIC fACtors
20 Financial Performance and Economic Impact Impac t
2010 wa1 u by maacig Lcai Lcai Lcai
25 Governance, Ethics, and Public Policy Polic y
wa wiha
wa dichag
Ial wa rcycl
eia wa L eapai
Piay wa sc2
Chengdu
153
109
29
44
Dalian3
293
192
8
101
Surface: Biliu and Yingna Rivers
126
66
0
60
Ground: Colima Superior Aquifer
18
7
7
11
Surface: Kabini River
996
975
171
21
Surface: River Liffey
Chia
envIronmentAL fACtors
32 32 ei ei Our Approach to Environmental Sustainability
Surface: Fuhe River
Ca rica San Jose
KeY Issues & PrIorItIes
Iia
Climate Change and Energy Efciency > Water Conservation Waste: Reduce, Reuse, Recycle
Bangalore Ila
Reducing Air Emissions
Ial
Energy-Efcient Performance and Product Ecology
Qiryat-Gat
640
414
24 4
224
Applying Technology to Environmental Challenges
Jerusalem
21
20
4
2
Leixlip
Performance Summary & Goals soCIAL fACtors
Surface and ground: Lake Kinneret, Coastal Aquifer, Mountain Aquifer (Yarkon-Tininim), and local desalinization plant Surface and ground: Lake Kinneret, Coastal Aquifer, Mountain Aquifer (Yarkon-Tininim), and local desalinization plant
malayia Kulim
221
151
19
70
Surface: Muda River
Penang
278
181
5
97
Surface: Muda River
58 58 Workplace Workplace 79 79 Supply Supply Chain Chain
ui sa Chandler, Arizona
135
104
10
31
Surface and ground: Salt and Verde Rivers, local aquifer
92 Contributions to Society Societ y
Ocotillo, Arizona4
1436
1234
361
203
Surface and ground: Salt and Verde Rivers, local aquifer
Folsom, California
103
26
0
77
Surface: American River
11 1 11 About This Report/Approach to Assurance Assurance
Santa Clara, California Hudson, Massachusetts
153
147
9
7
Surface: Tuolumne River
231
169
156
62
112 1 12 GRI GRI Content Index Index
Rio Rancho, New Mexico
1460
1280
820
180
119 1 19 UN Global Compact— Communication on Progress Progress
Aloha, Oregon
240
221
0
19
Surface: Tualatin River
1522
1,327
303
195
Surface: Tualatin River
113
68
10
45
Surface: Dong Nai River
APPendIx
Ronler Acres, Oregon
Ground: Assabet River Basin Aquifer Ground: Santa Fe Aquifer
via Access the Report Builder 2010 2010 Corporate Responsibility Report www.intel.com/go/responsibility
Ho Chi Minh City3
2 For each water source, our 2010 water use did not exceed 5% of that source. 3 Opened in 2010. 4 In addition to 1,436 million In mill ions of gallons. Figures represent water use/withdrawals by site. gallons of fresh water used at the site, we used 890 million gallons of gray water from the local municipal water treatment facility for use on our campus, further reducing our use of fresh water.
1
47 Back
Next
Previous View
e n v I r o n m e n t A L
f A C t o r s
3 Letter From Our CEO overvIew
5 Corporate Prole 9 Strategy and Management Approach GovernAnCe And eConomIC fACtors
20 Financial Performance and Economic Impact Impac t 25 Governance, Ethics, and Public Policy Polic y envIronmentAL fACtors
32 32 ei ei Our Approach to Environmental Sustainability KeY Issues & PrIorItIes
Climate Change and Energy Efciency Water Conservation > Waste: Reduce, Reuse, Recycle Reducing Air Emissions Energy-Efcient Performance and Product Ecology Applying Technology to Environmental Challenges Performance Summary & Goals soCIAL fACtors
58 58 Workplace Workplace 79 79 Supply Supply Chain Chain 92 Contributions to Society Societ y APPendIx
11 1 11 About This Report/Approach to Assurance Assurance 112 1 12 GRI GRI Content Index Index 119 1 19 UN Global Compact— Communication on Progress Progress Access the Report Builder 2010 2010 Corporate Responsibility Report www.intel.com/go/responsibility
Waste: Reduce, Reuse, Recycle
Solid Waste Recycled
Each year, we recycle a high percentage of the waste from our operations. In 2010, our employees continued to iden-
17% 35%
tify new opportunities to minimizeprocess waste improvements and recycle or to reuse materials, from large-scale everyday actions.
23% 7%
2%
sli wa Since 2007, we have recycled at least 80% of the solid waste generated in our operations each year. Waste generated during construction makes up a signicant portion of our solid waste. We have implemented several programs to reduce, reuse, and recycle the solid waste resulting from construction activities and other Intel operations. In 2010, for example, we recycled or donated 2,225 tons (equivalent to the weight of 1,511 cars1) of materials, including 250 tons of recycled or reclaimed carpeting and 1,977 tons of recycled or reused ofce furniture, as part of our renovation of 1 million square feet of ofce space.
Metal
Plastic
Cardboard, Fiber, and Paper
Comingled
Wood
a. thy a ack paaly.
Solid Waste Generated/Recycled 100
83.8
80 s n o 60 T d n a u s o 40 h T
center equipment, and make other site improvements. We have instituted composting programs for our cafeteria waste at a number of our sites. At Intel Malaysia, for example, food scraps are fed to worms and transformed into nutrient-rich compost that is used to fertilize the site’s garden and landscapes, and is made available to employees for home use.
megawatts of clean energy to the power grid every year. Since 2008, we have donated a total of 115 tons of silicon wafers for reuse.
Landscape and Food Waste
w cycl 83% li a i 2010 (ih h balac ip i lall), cig cpa-i gal 80%. Lacap a a a i lch a cp, pcily. f a ay al b a pig a. Cha icl ai (i.., c ppli a pl qip) lcic
In 2010, our waste reduction programs enabled Intel to save more than $5 million. To reinforce the value of recycling for our employees, during the past ve years, we have applied funds saved through our recycling activities to provide rebates in our cafeterias, purchase employee tness
In 2010, we sold about 25 tons of silicon wafers that could not be used for production. The wafers provided raw material for the solar industry— enough to manufacture solar cells that could potentially add more than 2.5
15%
20
60.9 58.7 51.3 44.5 88% 74%
2006
80% 80%
2007
Solid Waste Recycled
Solid Waste Generated
2008
2009
83%
) 0 125 0 1 = 9 9 9 100 100 1 r a e Y ( x e 75 d n I n o i c 50 t u d o r P d 25 e z i l a m r o N
2010
Solid Waste Generated— Normalized
sli a ga a p 15% a abl bai a 13% a p chip bai i 2010 cpa 2009.
48
An average car weighs 2,945 pounds.
1
Back
Next
Previous View
e n v I r o n m e n t A L
f A C t o r s
3 Letter From Our CEO overvIew
5 Corporate Prole
Chical wa
9 Strategy and Management Approach
In 2008, we announced a goal to reduce our generation of chemical waste per chip by 10% by 2012 compared to 2007 levels. To date, our chemical waste has actually increased since 2007, due to increasing complexity in
GovernAnCe And eConomIC fACtors
20 Financial Performance and Economic Impact Impac t 25 Governance, Ethics, and Public Policy Polic y envIronmentAL fACtors
32 32 ei ei Our Approach to Environmental Sustainability KeY Issues & PrIorItIes
Climate Change and Energy Efciency Water Conservation > Waste: Reduce, Reuse, Recycle Reducing Air Emissions Energy-Efcient Performance and Product Ecology Applying Technology to Environmental Challenges Performance Summary & Goals soCIAL fACtors
58 58 Workplace Workplace 79 79 Supply Supply Chain Chain
our manufacturing processe processes. s. In 2010, we took steps to reduce two of our largest chemical waste streams: dissolved metallic copper and corrosive solvent. We installed a new system that will enable us to recover dissolved metallic copper on-site, and plan to install a second one in 2011. The new systems will eliminate off-site shipment of this chemical waste stream and associated transportation emissions. In addition, by optimizing feed control systems to reduce excess lime and sulfuric acid in the calcium uoride, we reduced the amount of calcium uoride waste generated in our treatment system.
Chemical Waste Generated/Recycled 200
40
31.3
30 s n o T d n 20 a s u o h T 10
24.7
23.3
100 100
64%
2006
87%
84%
Despite these achievements, we expect to face continuing challenges in reducing chemical waste in our operations, and therefore will continue to focus on recycling as much of this waste as possible. Multiple groups across Intel are committed to addressing these challenges in 2011 and
50
75% 71%
2007
2008
Chemical Waste Recycled Chemical Waste Generated
We have also reduced chemical waste associated with indium, a thermal interface material used to absorb heat generated by our products. Since 2006, we have worked with our supplier to reclaim and recycle over 6,500 kilograms of indium, generating cost savings of more than $2 million from 2006 through the end of 2010.
150 150
28.5
30.0
2009
2010
Chemical Waste Generated—Normalized
Chical a ga a p 27% a abl bai a 4% a p chip bai i 2010 cpa 2009. I 2009, h p chip bai a high ha i h ya, i pa bca l aacig l. o 2010 chical a cyclig a a 75%, bl gal 80%. th cl a u.s. cyclig aciliy a c cyclig ppii i Ial cib icly i achiig hi gal.
em ca
aste anagement et o s 6% 11 11% %
beyond.
8%
92 Contributions to Society Societ y APPendIx
11 1 11 About This Report/Approach to Assurance Assurance 112 1 12 GRI GRI Content Index Index 119 1 19 UN Global Compact— Communication on Progress Progress Access the Report Builder 2010 2010 Corporate Responsibility Report www.intel.com/go/responsibility
) 0 0 1 = 9 9 9 1 r a e Y ( x e d n I n o i t c u d o r P d e z i l a m r o N
75%
Recycled
Incine rated
Landfill
Treated
th cycl a al icl chical icly , chical cycl, a l-blig aciii.
49 Back
Next
Previous View
e n v I r o n m e n t A L
f A C t o r s
3 Letter From Our CEO overvIew
5 Corporate Prole 9 Strategy and Management Approach GovernAnCe And eConomIC fACtors
20 Financial Performance and Economic Impact Impac t 25 Governance, Ethics, and Public Policy Polic y envIronmentAL fACtors
32 32 ei ei Our Approach to Environmental Sustainability KeY Issues & PrIorItIes
Climate Change and Energy Efciency Water Conservation Waste: Reduce, Reuse, Recycle > Reducing Air Emissions Energy-Efcient Performance and Product Ecology Applying Technology to Environmental Challenges Performance Summary & Goals soCIAL fACtors
58 58 Workplace Workplace 79 79 Supply Supply Chain Chain 92 Contributions to Society Societ y
Reducing Air Emissions
NOx and CO Emissions 214
Through careful design of our production processes, we have reduced our absolute air emissions since 2000, while
200
150 150
169 164 169
We work to minimize our emissions of both volatile organic compounds (VOCs) and hazardous air pollutants (HAPs). Where we cannot eliminate VOCs and HAPs entirely, we install thermal oxidizers and wet scrubbers to neutralize and absorb gases and vapors. Thermal oxidizers rst concentrate VOCs and then oxidize them into carbon dioxide and water vapor. The heat used in this process is passed through a heat exchanger to preheat the incoming air and make the unit more efcient and use less fuel. Wet scrubbers re-circulate water that contains a neutralizing agent to remove acidic gases and other contaminants. Intel eliminated the use of ozone-depleting substances (ODSs) from manufacturing in the 1990s. We have also eliminated the use of Class I ODSs from refrigerant systems. Although some of our refrigerant systems still use Class II ODSs, the units are managed in accordance with the U.S. EPA’s refrigerant management standards and other local requirements to ensure that emissions are minimized.
140
138 135
s n 100 o 100
50
2006
2007
2008
2010
2009
Nitrogen Oxide (NOx)
Carbon Monoxide (CO)
NOx Emissions—Normalized Emissions—Normalized
CO Emissions—Normalized Emissions—Normalized
Abl Co ii p 4% a p chip Co ii 21% i 2010 cpa 2009. Abl no ii p 40% cpa 2009 a p chip no ii p 5%.
an 250
In 2010, we saw sizable increases in both our NOx and HAP emissions from 2009 levels. NOx emissions were up 40% due to bringing on new facilities. HAP emissions were up 38% as a result of new process changes. Our longterm trend is positive, however; as we have achieved absolute reductions in HAP emissions compared to 2000 levels.
m s s o ns ns ) 0 0 1 = 9 9 9 1 r 40 a e Y (
254
50
247
211
200
182 162
s n o T 100
50
112 1 12 GRI GRI Content Index Index
23
119 1 19 UN Global Compact— Communication on Progress Progress
e x d n I n o i t c u 20 d o r P d e z i 10 l a m r o N
30
150 150
11 1 11 About This Report/Approach to Assurance Assurance
2010 2010 Corporate Responsibility Report www.intel.com/go/responsibility
170 170 168 168
expanding our operations more than two-fold.
APPendIx
Access the Report Builder
164 164 159 159
) 0 0 1 = 120 9 9 9 1 r a 90 e ( Y x e d n I 60 n o i t c u d o 30 r P d e z i l a m r o N
21
19
15
21
2006
.
2007
2008
2009
2010
VOC Emissions
HAP Emissions
VOC Emissions—Normalized
HAP Emissions—Normalized
I 2010, abl voC ii p 13% a HAP ii p 41%
cpa 2009. voC ii 15% a HAP ii p 4% a p chip bai.
50 Back
Next
Previous View
e n v I r o n m e n t A L
f A C t o r s
3 Letter From Our CEO overvIew
5 Corporate Prole 9 Strategy and Management Approach GovernAnCe And eConomIC fACtors
20 Financial Performance and Economic Impact Impac t 25 Governance, Ethics, and Public Policy Polic y envIronmentAL fACtors
32 32 ei ei
Energy-Efcient Performance and Product Ecology Through our Design for the Environment principles, we strive to minimize the environmental impact of our products at all phases in their life cycle: development, production, use, and ultimate disposal. Energy-efcient performance is a key element of our product design and overall environmental footprint reduction efforts.
Our Approach to Environmental Sustainability
Ipig Pc egy ecicy
KeY Issues & PrIorItIes
Transistors are the building blocks of the electronics industry, so the creation of more energy-efcient transistors leads to more energy-efcient
Climate Change and Energy Efciency Water Conservation Waste: Reduce, Reuse, Recycle Reducing Air Emissions > Energy-Efcient Performance and Product Ecology Applying Technology to Environmental Challenges Performance Summary & Goals soCIAL fACtors
58 58 Workplace Workplace 79 79 Supply Supply Chain Chain 92 Contributions to Society Societ y APPendIx
11 1 11 About This Report/Approach to Assurance Assurance 112 1 12 GRI GRI Content Index Index 119 1 19 UN Global Compact— Communication on Progress Progress Access the Report Builder 2010 2010 Corporate Responsibility Report www.intel.com/go/responsibility
Intel’s 32nm silicon technology with second-generation Hi-k metal gate transistors delivers greater energy efciency than previous generations, because Hi-k metal gates reduce transistor power and increase transistor density. Higher transistor densities drive system-level integration, higher productivity, and lower energy consumption. For example, the Intel® Xeon® processor L5640 (released in early 2010) provides the same performance as the previous generation Intel® Xeon® processor X5570, with up to 30% lower system power usage1. We project that replacing 15 ve-year-old servers with a single Intel® Xeon® processor-based server would cut annual energy costs by 95%. To learn more, access the Intel® Xeon® Processorbased Server Refresh Savings Estimator tool. Estimator tool. In December 2010, we introduced the 2nd generation Intel® Core™ processor family, a new microarchitecture based on our 32nm process technol-
computers. With each new generation of process technology, we can t more transistors onto Intel® processors, while also reducing the energy required to power them. Moore’s Law Law describes describes the pace of these trends, which—when combined with Intel® architecture and circuit design innovations—have enabled us to reduce the amount of energy consumed per transistor by a factor of approximately 1 million over the past 30 years.
ogy. For personal computers, this advancement eliminated the need for discrete graphics components in volume computer systems, saving nearly 25% of the platform power budget. The new family of processors also brings signicant energy-efcient performance improvements for servers. For example, with the Intel® Xeon® processor E3 platforms, Intel projects a 20%−30% performance increase within the same power envelope. The new processor’s energy-efciency improvements for laptops include:
Our goal is to drive energy-efcient performance across all of our major product lines—from netbook and embedded processors to those used in laptops, desktops, and servers. We estimate that Intel technology will
• 25% lower average power consumption with 20%−70% more performance than the 2010 processor.
enable the billion PCs and servers installed between 2007 and 2014 to consume half the energy and deliver 17 times the compute capacity of the rst billion PCs and servers (installed between 1980 and 2007). Each new generation of processors brings important benets for consumers and the environment. We estimate that the conversion to the energyefcient Intel® Core™ microarchitecture saved up to 26 terawatt-hours of electricity between 2006 and 2009, compared to the technology it replaced. That is equivalent to eliminating the CO2 emissions associated with the annual electricity use of more than 2 million U.S. homes.
• A 30% reduction in thermal design power (TDP) compared to previousgeneration processors with discrete graphics cards. • A 10-fold 10-fold reduction in energy use when Intel® vPro™ technology is applied, compared to the energy consumption of unmanaged PCs purchased in 2006. In early 2011, we introduced the Intel® Centrino® Advanced-N 6230 wireless card for laptops, which combines WiFi and Bluetooth* capabilities on a single card. A laptop equipped with the new card requires less material for manufacturing and can use less energy compared to a laptop equipped with two separate wireless cards.
Source: www.intel.com/performance/server/xeon/summary.htm
1
51 Back
Next
Previous View
e n v I r o n m e n t A L
f A C t o r s
3 Letter From Our CEO overvIew
5 Corporate Prole 9 Strategy and Management Approach GovernAnCe And eConomIC fACtors
20 Financial Performance and Economic Impact Impac t 25 Governance, Ethics, and Public Policy Polic y envIronmentAL fACtors
32 32 ei ei Our Approach to Environmental Sustainability KeY Issues & PrIorItIes
Climate Change and Energy Efciency Water Conservation Waste: Reduce, Reuse, Recycle Reducing Air Emissions > Energy-Efcient Performance and Product Ecology Applying Technology to Environmental Challenges Performance Summary & Goals soCIAL fACtors
58 58 Workplace Workplace 79 79 Supply Supply Chain Chain 92 Contributions to Society Societ y APPendIx
11 1 11 About This Report/Approach to Assurance Assurance 112 1 12 GRI GRI Content Index Index 119 1 19 UN Global Compact— Communication on Progress Progress Access the Report Builder 2010 2010 Corporate Responsibility Report www.intel.com/go/responsibility
Intel has pioneered a diverse set of hardware and software technologies that help measure and optimize energy use in computers and data centers. The Intel® Intelligent Power Node Manager and Manager and Intel® Data Center Manager Manager (Intel® DCM) allow IT managers to monitor the energy consumption of their
with industry, governments, and NGOs to balance environmental protection with workable technical solutions for the pending revision of the RoHS Directive. Intel has also worked to help China develop a regulation restricting the use of the same materials as the EU’s RoHS regulation of 2006.
servers, potentially resulting in increased rack density and lower power consumption. A proof of concept concept completed completed with the BMW Group showed that use of the Intel Intelligent Power Node Manager and Intel DCM can lower server power consumption by 18% and increase server efciency by approximately 19%. Power management technologies are also helping our public sector customers. Also read the case study on study on how Intel technology helped the Swedish Public Employment Service reduce its costs and environmental impact.
For details, visit our RoHS/Lead (Pb) Free Solutions Solutions web web site. While legislation does not require the elimination of halogenated ame retardants, Intel has taken steps to reduce our use of these materials. We have played a role in facilitating industry consensus around low-halogen practices and chairing industry standards committees on materials selection and eco-design. Most of our 45-nanometer (nm) processors and all of our 65nm chipsets and 32nm processors use low-halogen packaging technology. Registration, Evaluation, and Authorization of Chemicals (REACH) is an
In 2010, Intel developed a prototype of a personal ofce energy manager (POEM) in collaboration with the Positive Energy Building Consortium (GIE Enjeu Energie Positive Positive).). POEM reads sensors in a modern ofce PC network and displays the energy “footprint” of an individual, as well as the aggregate energy of the ofce oor and entire building. It uses the visual metaphor of a garden of owers to convey a sense of electricity consumed by PCs, printers, and other equipment. POEM helps reduce overall energy consumption by informing individual ofce workers of their electricity consumption and providing tips about how to reduce it. To learn more about this project and other initiatives to improve the efciency of computing, read the white paper paper..
Pc eclgy We work to reduce the environmental footprint of our products from design through disposal, which includes evaluating the environmental impact of the materials used in our processes and working with others on responsible management of electronic waste (e-waste).
EU regulation that went into effect in 2007, affecting the use of approximately 30,000 chemical substances. As part of REACH, registration is required for all existing chemical substances manufactured or imported into the EU in quantities greater than 1 ton per year. The process requires a “re-registration” by the manufacturer or importer for many substances that we use. To prevent supply chain interruption, we are collaborating with suppliers to ensure that they meet REACH requirements. Under certain conditions, REACH regulates chemical substances of very high concern (SVHC) within products. We have reviewed our products against the initial SVHC list, have met current obligations, and will continue to monitor the list as other substances are added.
elcic wa
Over the last decade, Intel has worked with suppliers and customers, and participated in several industry consortia, in an effort to eliminate lead and
Managing electronic waste (e-waste), such as computers, televisions, and mobile phones, is a global concern. Since 2005, the EU’s Waste Electrical and Electronic Equipment (WEEE) Directive has required producers of certain electrical and electronic equipment to develop programs that allow consumers to return products for recycling. Most of our products—including motherboards, microprocessors, and other components—are gener-
halogenated ame retardants from our products. We have now shipped over 500 million lead-free components worldwide. The European Union (EU) Restriction of Hazardous Substances (RoHS) Directive sets limitations
ally not considered to be within the scope of the directive until they are incorporated into a nal product, generally by an OEM. Although the nal assembly and conguration of our chassis-level server products are com-
on the use of six materials, including lead. We have taken a leadership role
monly completed by commercial customers, Intel considers the products to
52 Back
Next
Previous View
e n v I r o n m e n t A L
f A C t o r s
3 Letter From Our CEO overvIew
5 Corporate Prole 9 Strategy and Management Approach GovernAnCe And eConomIC fACtors
20 Financial Performance and Economic Impact Impac t 25 Governance, Ethics, and Public Policy Polic y envIronmentAL fACtors
32 32 ei ei Our Approach to Environmental Sustainability KeY Issues & PrIorItIes
Climate Change and Energy Efciency Water Conservation Waste: Reduce, Reuse, Recycle Reducing Air Emissions Energy-Efcient Performance and Product Ecology > Applying Technology to Environmental Challenges Performance Summary & Goals soCIAL fACtors
58 58 Workplace Workplace 79 79 Supply Supply Chain Chain 92 Contributions to Society Societ y APPendIx
11 1 11 About This Report/Approach to Assurance Assurance 112 1 12 GRI GRI Content Index Index
be within the scope of the directive and provides ways to recycle them. In some countries, our distributors provide recycling options for products covered by the directive. Intel has also facilitated recycling of our digital health products in the EU. Information is available on the Intel WEEE Directive
Intel has been a leading participant in the development of the Electronic Product Environmental Assessment Tool (EPEAT*), Tool (EPEAT*), a rating system designed to help purchasers in the public and private sector evaluate, compare, and select laptops, desktops, and monitors based on environmental
Recycling Program web Program web site. While our components are not typically subject to recycling or e-waste laws, we work with OEMs, retailers, customers, and others to identify shared solutions for used electronics. As a components manufacturer, we believe that the biggest impacts on a product’s environmental footprint occur at the design phase. Intel recently participated in an initiative to develop an international Design for the Environment standard for IT products–IEC 62075 Environmentally Conscious Design (IEC-62075). We are working to integrate the elements of IEC-62075 into our own design
attributes. The tool was developed through a multi-year, multi-stakeholder effort that included representatives from the IT industry, the EPA, federal and state purchasers, recyclers, and non-governmental environmental organizations. The EPEAT system provides consistent criteria for product evaluation, including energy performance, recyclability, and packaging. We provide information to channel partners and customers about EPEAT through our Intel® Reseller Center Center web web site.
practices, and are completing internal studies of design-related opportunities to improve recyclability. More information on the standard is available at the International Electrotechnical Commission web Commission web site.
Challenges
Information on recycling options for Intel products is available through the Intel Product Recycling Program web Program web site. We continue to support the U.S. EPA’s Plug-In To eCycling campaign, eCycling campaign, which is designed to build public and private support for proper recycling of used electronics. Over the past six years, Intel has collected more than 7.7 million pounds of e-waste at community collection events, helping communities recycle their used electronics responsibly. Collected materials—computers, printers, monitors, TVs, and more—are sent to qualied recycling facilities for materials recovery. In 2010, we hosted or sponsored community electronics recycling events in Costa Rica and in three U.S. states, collecting over 90,000 pounds of used electronics. Since many U.S. states now provide opportunities for e-waste recycling, we are shifting our focus and reducing the number of collection events held each year.
119 1 19 UN Global Compact— Communication on Progress Progress
Our PC Services department manages our internal assets. Products that can no longer be used within the company but are in working order may
Access the Report Builder
be sold or donated. Electronic equipment that is obsolete is processed by qualied recyclers. Intel’s surplus electronic equipment, such as idle manufacturing tools, may be donated or sold as part of Intel’s equipment surplus
2010 2010 Corporate Responsibility Report www.intel.com/go/responsibility
Technology echnology to Environmental Applying T People are using technology to help solve environmental challenges around the world. Through technology, individuals, families, companies, and governments gain information that can empower them to drive more sustainable practices in homes and across industries—helping to reduce the environmental footprint of cities and countries. Today, nearly every segment of industry is either in the process of (or beginning to explore) transforming their energy management and IT practices in order to achieve new levels of energy and environmental efciency. Intel continues to explore opportunities to design, develop, and deliver new technologies to address sustainability challenges. Our focus areas include: transforming to a low-carbon economy (energy, transportation); coping with climate change (water, air, modeling, extreme event preparation and response); and promoting transparency (providing data on embedded carbon, materials, toxics, etc.). In each of these areas, systems are becoming infused with IT that measures (senses), models (analyzes), and manages (controls) these man-made and natural systems.
program. 53 Back
Next
Previous View
e n v I r o n m e n t A L
f A C t o r s
3 Letter From Our CEO overvIew
5 Corporate Prole 9 Strategy and Management Approach GovernAnCe And eConomIC fACtors
20 Financial Performance and Economic Impact Impac t 25 Governance, Ethics, and Public Policy Polic y envIronmentAL fACtors
32 32 ei ei Our Approach to Environmental Sustainability KeY Issues & PrIorItIes
Climate Change and Energy Efciency Water Conservation Waste: Reduce, Reuse, Recycle Reducing Air Emissions Energy-Efcient Performance and Product Ecology > Applying Technology to Environmental Challenges Performance Summary & Goals soCIAL fACtors
58 58 Workplace Workplace 79 79 Supply Supply Chain Chain 92 Contributions to Society Societ y APPendIx
11 1 11 About This Report/Approach to Assurance Assurance 112 1 12 GRI GRI Content Index Index 119 1 19 UN Global Compact— Communication on Progress Progress Access the Report Builder 2010 2010 Corporate Responsibility Report www.intel.com/go/responsibility
Our researchers are developing whole-system energy management solutions for commercial buildings, homes, data centers, and utility distribution networks. We are also working with leading scientic institutions to develop high-performance computational models to enable more accurate
• Intel Labs, together with researchers at Sandia National Laboratories, used gaming technology to help teach people about water consumption and encourage their participation in public policy discussions on sustainability. The “Water Wars” game enables players to assume the roles of
climate and weather predictions. In addition, we are conducting research into the use of sensors, analytics, modeling, and decision support systems for urban and rural water management.
water systems managers and users, farmers, gardeners, retailers, and consumers, and take actions when faced with water scarcity. The gaming simulation can help policymakers understand how decisions affect diverse stakeholders.
The following are a few of the ways that Intel is involved in using technology to solve environmental challenges: • In 2010, we we released the Intel® Intelligent Home Energy Management System proof of concept based on the Intel® Atom™ processor. The system’s central dashboard helps family members stay connected and make informed decisions about energy use, home maintenance, and home security. Capgemini, a global technology and consulting leader, has announced that it will offer a home energy dashboard for its utility customers using the Intel proof of concept. To learn more, access the demo demo on our web site. • The Intel Labs research group completed a reference reference design for a wireless energy sensing technology (WEST) to help consumers better understand their electricity bills, identify devices that consume high amounts of energy, and better manage and reduce energy costs. The WEST reference design was demonstrated in multiple research forums in 2010, and 100 beta test units have been produced for pilots in 2011. • Intel Labs Europe drives collaborative sustainability research projects across a number of domains, including smart grids, electric vehicles, smart buildings, smart cities, smart manufacturing, data center energy efciency, and marine ecosystems. One of the group’s projects, the SmartBay project, project, in partnership with the Marine Institute, focuses on understanding and managing oceans in a sustainable manner through technologies that can detect pollution or naturally occurring toxins and monitor long-term shifts in ocean conditions that may be caused by global climate change.
• The Eco-T Eco-Technology echnology Program Of Ofce ce conducted research in 201 2010 0 into assessing technology opportunities related to water. The group will complete pilot studies in 2011 in partnership with water utilities and agricultural users in India and other locations to explore opportunities to apply Intel technology to the global water challenge. • In West Oakland, California, Intel Labs teamed up w with ith a local environmental group, West Oakland Environmental Indicators Project (EIP), Project (EIP), to test new platforms for environmental monitoring. West Oakland residents are exposed to poor air quality and particulate matter, yet the area has only one air-quality monitoring system. The Common Sense Sense project project aimed to add multiple mobile phone sensors to act as air-quality monitoring devices throughout the area. EIP volunteers and local students helped test device prototypes and collected data that was uploaded to Intel servers for analysis. • In New Mexico, Intel Labs has established a collaborative energy systems research center with participants in the New Mexico Green Grid Initiative. One of the center’s rst projects involves installation of a high-efciency high-efciency direct current (DC) lighting proof of concept, concept, which is 200%−400% more efcient than current practices. Project ndings will be published in a white paper comparing DC lighting to AC lighting in commercial spaces, and will be shared with Intel facilities managers for potential use in our ofce redesigns. For more information and examples of how Intel technology is being used to address environmental challenges, visit our Technology Technology for Environment Environment web site.
54 Back
Next
Previous View
e n v I r o n m e n t A L
f A C t o r s
3 Letter From Our CEO overvIew
5 Corporate Prole 9 Strategy and Management Approach GovernAnCe And eConomIC fACtors
20 Financial Performance and Economic Impact Impac t
Performance Summary and Goals In 2010, we continued to take steps to reduce our carbon footprint. We remained the largest purchaser of green power in the U.S., according to the U.S. EPA, made new investments in energy-saving projects in our operations, and linked variable compensation to energy reduction goals to further encourage our employees to take action. We continued to face challenges in achieving reductions in both water use and chemical waste generated, and continued to take steps reverse these trends. We achieved our product-related environmental goals, including energy-efciency targets, and collaborated with others in our industry to develop a new energy-efciency performance metric.
25 Governance, Ethics, and Public Policy Polic y
ei Gal a Pac ei
envIronmentAL fACtors
32 32 ei ei
2012 Gal
2010 Pg Agai Gal
Reduce water use per chip1 b eellow 20 20 0 07 7 levels bbyy 2 20 012.
Trac kkiin g against oouur 20 20 07 07 ba bas el eline, ou ou r water us use w waas up up 14 14% on on a per chip basis. We took steps in 2010, and will continue to work in 201 2011, 1, to reverse this trend, and still expect to meet our 2012 2012 goal.
Reduce absolute global-warming gas footprint by 20% by 2012 from 2007 levels.
Total Total emissions were down 44% on an absolute basis compared to our 2007 baseline.
Reduce energy consumption per chip 5% per year from 2007 through 2012.
Per chip energy use was down 6% compared to our 2007 baseline average of 2% per year. We will continue to work to achieve an average annual reduction of 5% by 2012.
Reduce generation of chemical waste per chip by 10% by 2012 from 2007 levels.
Chemical waste generation on a per chip basis was u p 41% 41% over our 2007 baseline due to increased complexity in our manufacturing processes. We are putting measures in place to change this trend but are at risk of not meeting our 2012 2012 goal.
Re Recyc cycle le 80% of ch chem emica icall and and ssol olid id wa wast stee ggen ener erat ated ed pe perr yea year.r.
We recy recycl cled ed 83% 83% ooff our our sol solid id wa wast ste, e, but our chemic chemical al wa wast stee rrecy ecycl cling ing rate rate was 75%. We will work in 2011 2011 to improve our chemical waste recycling rate.
Achieve and designlead milestones to ensfor ureour thatn ext Intel® products maintainengineering the energy-efciency in the market two product generations.
We met our energy-efciency and product ecology targets in 2010. 2010.
Our Approach to Environmental Sustainability KeY Issues & PrIorItIes
Climate Change and Energy Efciency Water Conservation Waste: Reduce, Reuse, Recycle Reducing Air Emissions Energy-Efcient Performance and Product Ecology Applying Technology to Environmental Challenges > Performance Summary & Goals soCIAL fACtors
58 58 Workplace Workplace 79 79 Supply Supply Chain Chain 92 Contributions to Society Societ y
Achi
Paially Achi
n m
APPendIx
11 1 11 About This Report/Approach to Assurance Assurance 112 1 12 GRI GRI Content Index Index 119 1 19 UN Global Compact— Communication on Progress Progress Access the Report Builder 2010 2010 Corporate Responsibility Report www.intel.com/go/responsibility
Assuming a typica l chip size of approximately 1 cm2 (chips vary in size depending on the specic product).
1
sbq ig 2012 ial gal a h bgiig 2008, cpl h ii nor ah y bi i chag a hip i i ny B.v. t ai h pibiliy aig ci by iclig a ha l b aib h al h pai, ca a i 2007 bali h gal, ih h ny aa . w bli ha ig hi i bali all b ack l aiig h ic aci ha a akig i pai c ial pi. Pcag i h abl h pg a h 2010 agai h i 2007 bali; abl, gaph, a aa i h h p hiical 2007 g.
55 Back
Next
Previous View
e n v I r o n m e n t A L
f A C t o r s
3 Letter From Our CEO overvIew
5 Corporate Prole
Cpliac Iai a rpig
9 Strategy and Management Approach
In 2010, we continued to maximize our EHS performance through our comprehensive compliance assurance program. In addition to the third-party audits for our ISO 14001 and OHSAS 18001 certication, our site operations conduct program self-assessments that are the backbone of effective compliance assurance. The self-assessments cover environment, safety, industrial hygiene, ergonomics, and health and wellness programs, and are periodic, planned,
GovernAnCe And eConomIC fACtors
20 Financial Performance and Economic Impact Impac t 25 Governance, Ethics, and Public Policy Polic y
in-depth reviews of programs or targeted risk areas. The assessments are designed to validate all aspects of compliance and effective implementation. Another key aspect of our assurance program are internal compliance audits completed by senior EHS professionals independent of site operations and under the direction of EHS Legal counsel. These formal audits include evaluation of areas related to EHS business risk and management systems, and include in-depth interviews, documentation reviews, and physical inspections related to applicable EHS compliance programs.
envIronmentAL fACtors
32 32 ei ei Our Approach to Environmental Sustainability KeY Issues & PrIorItIes
Climate Change and Energy Efciency Water Conservation Waste: Reduce, Reuse, Recycle Reducing Air Emissions Energy-Efcient Performance and Product Ecology Applying Technology to Environmental Challenges > Performance Summary & Goals
On an annual basis, we report our releases to air, transfers off-site, and treatment of reportable chemicals in the U.S. in accordance with U.S. EPA regulations. For our most recent SARA Title III Reportable Chemicals by Site report, access the Report Builder on Builder on our Corporate Responsibility Report web site. Environmental, health, and safety ofcials from various regulatory agencies made approximately 75 visits (including audits and inspections) to Intel site operations in 2010. Intel received two Notices of Violation (NOVs) in 2010, totaling $27,400 in nancial penalties. Intel self-identied and proactively reported one of the items to the local regulatory agency to ensure effective resolution and to role model corporate responsibility. In addition to the NOVs listed, in 2010 the EPA identied one area of non-compliance related to emissions calculations, and several areas of concern following completion of an inspection of our Rio Rancho, New Mexico facility. The results of the inspection and ndings are not yet nal and are subject to change; the nal outcome will be included in our next Corporate Responsibility Report. Ipci a Cpliac Lcai
typ
vilai
Rio Rancho, New Mexico
Environment r onmental al
The New Mexico Mexico Enviro Environme nmenta ntall Depa Departme rtment nt (NMED) issued a notice of violation for a c hemical constituent not listed on quarterly air emis-
soCIAL fACtors
fi $25, $25,200 2 00
sions reports. Intel self-identied the missing chemical constituent and notied NMED to ensure resolution.
58 58 Workplace Workplace 79 79 Supply Supply Chain Chain
Il’ Cci Aci The The affe affect cted ed emi emissio s sions ns rep repor orts ts wer weree upda updatted to include the correct chemical information and submitted to NMED. Intel updated chemical management applications and systems to ensure the effective tracking of regulated materials.
92 Contributions to Society Societ y APPendIx
11 1 11 About This Report/Approach to Assurance Assurance 112 1 12 GRI GRI Content Index Index 119 1 19 UN Global Compact— Communication on Progress Progress Access the Report Builder 2010 2010 Corporate Responsibility Report www.intel.com/go/responsibility
Parsippany, New Jersey
Environment r onmental al
The New Jer Jersey sey Departm Department ent of Envi Environmen r onmental tal Protection issued a notice of violation related to procurement of operational permits for boiler and emergency generator installations at a leased Intel ofce building.
$2,200
Intel improved the environmental permit review processes for the due diligence phase of mergers and acquisitions.
56 Back
Next
Previous View
e n v I r o n m e n t A L
f A C t o r s
3 Letter From Our CEO overvIew
5 Corporate Prole
fi-Ya Cpliac say (eHs-rla nic vilai)
9 Strategy and Management Approach
Number of NOVs
GovernAnCe And eConomIC fACtors
20 Financial Performance and Economic Impact Impac t 25 Governance, Ethics, and Public Policy Polic y envIronmentAL fACtors
32 32 ei ei Our Approach to Environmental Sustainability KeY Issues & PrIorItIes
Fines
2006
2007
2008
2009
2010
6
6
4
5
2
$300
$800
$1,794
$1,620
$27,400
may h nic vilai (nov) c i ha ay pali acia ih h. Cci aci p i plac a ack cpli all ii cc. dail h nov a aailabl i pi Cpa rpibiliy rp. rp .
In 2011, we will continue to work toward achieving the ve-year goals that we set at the beginning of 2008, placing a strong emphasis on energy conservation and reducing our water use and chemical waste. We will also focus on identifying opportunities to increase our chemical waste recycling rate. We will continue our collaborations with external organizations on sustainability issues, particularly in identifying the role that ICT can play in addressing global environmental challenges. We will also nalize our 2020 environmental goals and publish them in the second half of 2011.
Climate Change and Energy Efciency
2012 eial Gal Reduce water use per chip1 below 2007 levels by 2012.
Water Conservation Waste: Reduce, Reuse, Recycle
Reduce absolute global-warming gas footprint by 20% by 2012 from 2007 levels.
Reducing Air Emissions
Reduce energy consumption per chip 5% per year from 2007 through 2012 2012..
Energy-Efcient Performance and Product Ecology
Reduce generation of chemical waste per chip by 10% by 2012 from 2007 levels.
Applying Technology to Environmental Challenges
Recycle 80% of chemical and solid waste generated per year.
> Performance Summary & Goals
Achieve engineering and design milestones to ens ure that Intel® products maintain the energy-efciency lead in the market for our n ext two product generations.
soCIAL fACtors
58 58 Workplace Workplace 79 79 Supply Supply Chain Chain 92 Contributions to Society Societ y APPendIx
11 1 11 About This Report/Approach to Assurance Assurance 112 1 12 GRI GRI Content Index Index 119 1 19 UN Global Compact— Communication on Progress Progress Access the Report Builder 2010 2010 Corporate Responsibility Report www.intel.com/go/responsibility
Assuming a typical chip size of approximately 1 cm2 (chips vary in size depending on the specic product).
1
57 Back
Next
Previous View
s o C I A L
f A C t o r s
3 Letter From Our CEO overvIew
5 Corporate Prole 9 Strategy and Management Approach GovernAnCe And eConomIC fACtors
20 Financial Performance and Economic Impact Impac t 25 Governance, Ethics, and Public Policy Polic y envIronmentAL fACtors
32 32 Environment Environment soCIAL fACtors
58 58 wkplac wkplac Our Approach to Empowering Employees KeY Issues & PrIorItIes
Career Growth and Development Development Communication and Recognition
Workplace For over 40 years, Intel employees have been making history— collaborating to tackle some of the world’s toughest challenges and developing technical innovations that have improved lives everywhere. Our success depends on recruiting and cultivating the best talent. Intel is known for its technology, but the people behind the technology are what make the company great.
1
2 3
m b iag.
Workforce Diversity and Inclusion Compensation, Benets, and Work/Life Effectiveness Effectiveness Health and Safety, and Employee Wellness Performance Summary & Goals 79 79 Supply Supply Chain Chain 92 Contributions to Society Societ y APPendIx
11 1 11 About This Report/Approach to Assurance Assurance
Ky wkplac Lik
112 1 12 GRI GRI Content Index Index
Intel Values
119 1 19 UN Global Compact— Communication on Progress Progress
Access the Report Builder 2010 2010 Corporate Responsibility Report www.intel.com/go/responsibility
254
$
Million
Amount invested in Intel employee training in 2010
4,267 Number of Intel employees who took paid sabbaticals in 2010
24
%
Increase in number of women in technical mid- to senior-level Intel jobs since 2004
Innovation at Intel Life at Intel Diversity at Intel Chartered Employee Groups Compensation and Benefits
Intel jobs since 2004
www.intel.com/go/responsibility 58 Back
Next
Previous View
s o C I A L
f A C t o r s
3 Letter From Our CEO overvIew
5 Corporate Prole 9 Strategy and Management Approach GovernAnCe And eConomIC fACtors
20 Financial Performance and Economic Impact Impac t 25 Governance, Ethics, and Public Policy Polic y envIronmentAL fACtors
32 32 Environment Environment soCIAL fACtors
58 58 wkplac wkplac > Our Approach to Empowering Employees KeY Issues & PrIorItIes
Career Growth and Development Development
Our Approach to Empowering Employees Our goal is to cultivate a safe and respectful work environment where employees can thrive, create, and innovate.
Our “open door” policy enables employees to speak directly with all levels of management about their ideas, concerns, or problems, and to collaborate with managers to address workplace issues. Quarterly Business Update Meetings provide two-way communication venues where employees can
We offer competitive compensation packages, a broad range of benets, and career and leadership development programs.
ask questions and share their views about our business directly with senior leaders. Feedback from regular employee surveys provides real-time information and data to drive continuous improvement over time.
o Glbal wkc As of December 25, 2010, Intel had approximately 82,500 employees worldwide, approximately 55% of whom were located in the U.S. Our workforce is highly educated, with employees holding an estimated 42,000 technical degrees, as well as 12,000 master of science, 4,000 PhD or equivalent, and 3,800 master of business administration degrees. o a
or
orce as o
ority, from everyday thank-yous to formal reward programs. We have made signicant investments in the development of strong leaders, recognizing that having skilled managers throughout the organization is critical to our success. We conduct succession planning, provide development opportunities, and set clear management and leadership expectations.
ear- n
Communication and Recognition Workforce Diversity and Inclusion Compensation, Benets, and Work/Life Effectiveness Effectiveness Health and Safety, and Employee Wellness
26%
Pig Iai 55% 14%
Performance Summary & Goals 79 79 Supply Supply Chain Chain 92 Contributions to Society Societ y APPendIx
11 1 11 About This Report/Approach to Assurance Assurance 112 1 12 GRI GRI Content Index Index 119 1 19 UN Global Compact— Communication on Progress Progress
5% U.S. APAC = Asia-Pacific
Americas
EMEA
APAC
EMEA = Europe, Middle East, A Africa frica
o ply’ ac c h c, , a cllag i h glbal ak. thi li ppci ak i pibl aicipa a pi h gig a chagig akplac.
o Philphy a maag Pacic One of the six Intel Values is “Great Place to Work,” which reinforces the importance of positive employee relations as a key component of our suc-
Access the Report Builder 2010 2010 Corporate Responsibility Report
People at Intel grow by continuously learning—on the job, in the classroom, and by connecting with others. Regular conversations between employees and their managers help identify new opportunities and development objectives. Through our Intel University program, employees connect with one another, acquire new skills, and share their knowledge as volunteer instructors. Celebrating the accomplishments of our employees is a top pri-
cess. We support this value by cultivating open and direct communications, rewarding and recognizing our people, and investing in career development
As a prolic inventor of technologies that solve real-world challenges, Intel was granted 1,657 patents in 2010. Driven by our ongoing pursuit of Moore’s Law, Law, innovation has always been an integral part of Intel’s culture. At Intel, innovation isn’t simply something we pursue; it’s who we are. In 2010, BusinessWeek and Fast Company magazines both named Intel on their lists of the 50 most innovative companies. We believe that innovation depends on correctly dening challenges, setting aggressive goals, and putting the right people on the right problems. Innovation also means removing barriers—the ones between research and development and between development and manufacturing—and giving employees the appropriate mix of autonomy and direction. Intel researchers are working in the eld—at universities and at our laboratories around the world—to advance knowledge in areas such as energy conservation, biotechnology, and optical communications. Our product development teams and manu-
www.intel.com/go/responsibility
and leadership. In 2010, our workplace practices earned Intel a spot on Fortune magazine’s annual “100 Best Companies to Work for” list.
facturing engineers, in turn, transform research into an array of products that are improving every facet of life.
59 Back
Next
Previous View
s o C I A L
f A C t o r s
3 Letter From Our CEO overvIew
5 Corporate Prole 9 Strategy and Management Approach GovernAnCe And eConomIC fACtors
20 Financial Performance and Economic Impact Impac t 25 Governance, Ethics, and Public Policy Polic y envIronmentAL fACtors
32 32 Environment Environment soCIAL fACtors
58 58 wkplac wkplac > Our Approach to Empowering Employees KeY Issues & PrIorItIes
Career Growth and Development Development Communication and Recognition Workforce Diversity and Inclusion Compensation, Benets, and Work/Life Effectiveness Effectiveness Health and Safety, and Employee Wellness Performance Summary & Goals 79 79 Supply Supply Chain Chain 92 Contributions to Society Societ y APPendIx
11 1 11 About This Report/Approach to Assurance Assurance 112 1 12 GRI GRI Content Index Index 119 1 19 UN Global Compact— Communication on Progress Progress
We conduct an ongoing dialogue with employees about our innovation goals and investments, and provide resources for managers on innovationrelated best practices, methods, and tools, including how to encourage creative behavior and foster innovation in their teams. We use recognition
In 2010, some 58,000 people—about 73% of our employees—responded to the 42-question OHS during late November and early December. OHS scores for 90% of the questions improved in 2010 compared to 2009. For the 2010 survey, we had dropped a number of questions for which we
and reward programs, leadership resources, and interactive forums to create the cultural support for risk taking and the open exchange of ideas that are essential to sustained innovation. Our IdeaZone employee intranet portal describes concrete methods to use at each stage of the innovation process, and our online Innovation Engine tool serves as a repository of employee ideas for product design enhancements, business process improvements, and more. To meet some of our innovators, visit the Our Innovators web Innovators web site.
had consistently scored very high, so we could focus on areas where we had greater opportunity for improvement. As a result of the survey, we are focusing on the following key areas in 2011: reducing bureaucracy, increasing employee development opportunities, and nding new ways to recognize people and reward great performance. ogaizaiall Halh sy rl slc ogaizaia
maig o Pg Managing a complex, geographically dispersed workforce is extremely challenging, so we have instituted a number of ways to regularly assess the health of our overall organization and business groups, and obtain feedback so that adjustments can be made as needed. ogaizaial Halh sy. Our sy. Our Organizational Health Survey (OHS) tells us what employees think about our workplace. This assessment provides insight into current business-specic issues, historical trending on a core set of questions, and comparisons to external benchmarks. It helps us identify strengths and areas for improvement in our business groups and geographies, and provides data for planning and improvement. Survey results (company-wide and business-unit level) are openly shared with employees, and our CEO uses OHS data to help determine variable compensation for his direct staff. Results are presented in nine broad categories: business process, teamwork, performance, climate, development, organizational direction, commitment, engagement, and environment.
Access the Report Builder 2010 2010 Corporate Responsibility Report
Richard Taylor, Vice President and Director, Human Resources
2009
2008
2007
I am proud to work for Intel
85%
82%
83%
75%
I would recommend Intel as a great place to work
80%
74%
73%
61%
My job makes good use of my skills/strengths
76%
74%
74%
70%
I have the exibility to balance the needs of my work and personal life
79%
77%
77%
72%
I hope to continue working at Intel for another
75%
77%
76%
67%
78%
77%
78%
74%
In my business group, innovation and creative thinking are actively encouraged
76%
73%
73%
70%
At Intel, I am treated with
83%
85%
85%
83%
ve years or more Open and direct communication is practiced effectively in my work group
“ We want to make Intel the place to be. We have worked hard over the last several years to improve our organizational health.”
2010
1
dignity and respect In 2010, we replaced our previous diversity question, “ I understand why a diverse workforce is important to Intel’s success,” with this new question to more broadly measure respect for diversity in our culture.
1
www.intel.com/go/responsibility
diversity in our culture.
Pcag h a “aabl” p h a. thgh bchakig, ha ha 80% p l-cla pac ll.
60 Back
Next
Previous View
s o C I A L
f A C t o r s
3 Letter From Our CEO overvIew
5 Corporate Prole
wkc daa
9 Strategy and Management Approach
Intel has a history of transparency in workforce data, having published comprehensive statistics in our Corporate Responsibility Report since 2002. 2010 eply daa
GovernAnCe And eConomIC fACtors
typ eply
20 Financial Performance and Economic Impact Impac t 25 Governance, Ethics, and Public Policy Polic y envIronmentAL fACtors
32 32 Environment Environment
Aica
APAC
emeA
u.s.
tal
Exempt Full Time
2,375
13,823
8,892
33,017
58,107
Exempt Part Time
4
8
107
106
225
2,379
13,831
8 8,,999
33,123
58,332
N onon-Ex Exem emppt Ful Full T im mee
1,33 ,333
7,344 ,344
2,689 6 89
10,630
21,996 ,996
Non-Exempt Part Time
—
—
32
6
38
1,333
7, 7,344
2 2,,721
10,636
22,034
3,712
21,175
11,720
43,759
80,366
Exempt Full Time
180
1,139
97
626
2,042
Exempt Part Time
72
32
1,501
66
1,671
252
1,171
1,598
6 69 92
3,713
Non-Exempt Full Time
50
1,062
358
686
2,156
Non-Exempt Part Time
1
—
139
73
213
51
1,062
4 49 97
7 75 59
2,369
303
2,233
2,095
1,451
6,082
4,015
23,408
13,815
45,210
86,448
tal
soCIAL fACtors
58 58 wkplac wkplac > Our Approach to Empowering Employees
tal
KeY Issues & PrIorItIes
rgla tal
Career Growth and Development Development
Il Cac eply a I
Communication and Recognition Workforce Diversity and Inclusion Compensation, Benets, and Work/Life Effectiveness Effectiveness Health and Safety, and Employee Wellness
tal
Performance Summary & Goals 79 79 Supply Supply Chain Chain 92 Contributions to Society Societ y
tal
APPendIx
Cac/I tal
11 1 11 About This Report/Approach to Assurance Assurance
Ga tal
112 1 12 GRI GRI Content Index Index 119 1 19 UN Global Compact— Communication on Progress Progress
eply Cagy
rgla1
APAC = Asia-Pacic
EMEA = Europe, Middle East, Africa
Regular employees only. Regular employee denition does not include Intel contract employees and interns.
1
A h 2010, h bak al ply (iclig Il cac ply a i) a: 55% i h u.s., 26% i APAC, 14% i emeA, a 5% i h Aica, hich i ci ih h gial bak i 2009.
Access the Report Builder 2010 2010 Corporate Responsibility Report
www.intel.com/go/responsibility 61 Back
Next
Previous View
s o C I A L
f A C t o r s
3 Letter From Our CEO overvIew
5 Corporate Prole
t by rgi1
9 Strategy and Management Approach
rgi
GovernAnCe And eConomIC fACtors
20 Financial Performance and Economic Impact Impac t 25 Governance, Ethics, and Public Policy Polic y envIronmentAL fACtors
Ya-e Hac 2010
t (%) 2010
t (%) 2009
t (%) 2008
t (%) 2007
Greater Americas
3,680
222
5.7%
6.9%
9.8%
11.1%
Greater Asia
21,175
1,305
5.9%
4.8%
6.6%
10.5%
Greater Europe
11,720
411
3.3%
2.7%
4.7%
8.2%
United States
43,791
1,073
2.4%
2.1%
4.3%
6.8%
80,366
3,011
3.6%
3.1%
5.3%
8.2%
tal
32 32 Environment Environment
t 2010
Regula r employees only. Does not include Intel co ntract employees and interns, or terminations du e to divestiture, retirement, or redeployment. Redepl oyment is the movement of employees to areas of greater return when there has been a change in business conditions. Intel’s redeployment program provides job-search time and support for eligible employees whose jobs have been eliminated. Redeployment is generally not a layoff, as employees have the opportunity while in redeployment to look for other positions within the company at their regular pay and benets, or they can choose a separation package. Turnover related to divestiture, retirement, or departures out of redeployment totaled 1,301 employees in 2010.
1
soCIAL fACtors
58 58 wkplac wkplac > Our Approach to Empowering Employees
I 2010, a ai l ac all gi, ih ligh ica i pa ipig cic cii. rgla iig by pac aig (p, il, a l) hlp p a a i a ily.
KeY Issues & PrIorItIes
Career Growth and Development Development Communication and Recognition Workforce Diversity and Inclusion Compensation, Benets, and Work/Life Effectiveness Effectiveness Health and Safety, and Employee Wellness
ot a
um e r o
m p o ye yee s
100
94.1 86.3 80
83.9
79.8
82.5
Performance Summary & Goals 79 79 Supply Supply Chain Chain 92 Contributions to Society Societ y APPendIx
11 1 11 About This Report/Approach to Assurance Assurance
s d n a s u o h T
Our workforce is highly educated, with employees 60
holding an estimated 42,000 technical degrees, as well as 12,000 master of science, 4,000 PhD or equivalent, and 3,800 master of business administration degrees.
40
20
112 1 12 GRI GRI Content Index Index 119 1 19 UN Global Compact— Communication on Progress Progress
0 2006
2007
2008
2009
2010
Employee figures in this graph are from our 2010 Annual Report and Form 10-K, and are slightly different from the totals in other tables in this section, as the totals include interns and students, in addition to Intel regular employees.
1
Access the Report Builder 2010 2010 Corporate Responsibility Report
w bga cig i 2006 ai a caig a ci gaizai a cig paig c. o icl a igica ci i h iz
www.intel.com/go/responsibility
glbal kc.
62 Back
Next
Previous View
s o C I A L
f A C t o r s
3 Letter From Our CEO overvIew
5 Corporate Prole 9 Strategy and Management Approach GovernAnCe And eConomIC fACtors
20 Financial Performance and Economic Impact Impac t 25 Governance, Ethics, and Public Policy Polic y envIronmentAL fACtors
32 32 Environment Environment soCIAL fACtors
58 58 wkplac wkplac Our Approach to Empowering Employees KeY Issues & PrIorItIes
> Career Growth and Development Development Communication and Recognition Workforce Diversity and Inclusion Compensation, Benets, and Work/Life Effectiveness Effectiveness Health and Safety, and Employee Wellness Performance Summary & Goals 79 79 Supply Supply Chain Chain 92 Contributions to Society Societ y APPendIx
11 1 11 About This Report/Approach to Assurance Assurance 112 1 12 GRI GRI Content Index Index 119 1 19 UN Global Compact— Communication on Progress Progress
Access the Report Builder 2010 2010 Corporate Responsibility Report
Career Growth and Development Our employees grow by continuously learning—on the job, in the classroo classroom, m, and by by connecting connecting with with others. others. We encourage employees to work with their managers to align their job assignments with their strengths and interests, as well as with the needs of the organization. Recognizing that a strong development culture requires a mix of resources and learning methods, our development model is a holistic approach with three main focus areas: • Learn. Provide Learn. Provide employees with a robust range of resources and tools, including Intel University courses focused on skills and role-based requirements, such as manager development, external professional certication resources, and access to world-class institutions via tuition reimbursement. • Connect. Encourage Connect. Encourage employees to connect with managers, senior leaders, and one another through Open Forums, quarterly events, mentoring relationships, employee groups, and online and social media channels. • Experience. Give Experience. Give employees opportunities to expand their skills through rotational, temporary, or sabbatical coverage assignments. Our sabbatical program creates regular opportunities for 90-day rotations and has contributed to a corporate culture that views rotations as a positive and standard practice in which employees are able to apply for corporatewide opportunities. Although every employee goes through an annual review process, performance management and career development at Intel is a continuing conversation between employees and their managers. Managers meet with each employee at least quarterly to review the prior quarter’s goals, the employee’s development and performance against expectations, and the upcoming quarter’s priorities and goals. These meetings provide opportunities for recognition and discussion of performance issues, and contribute to improvement in a team’s performance, execution, and business results.
When employees are ready to try new challenges, they can “test-drive” short-term assignments by providing coverage for employees on sabbatical leave or by taking advantage of one of our rotation programs. They can also use our internal global job-posting system to learn about and apply for new positions at Intel. Many employees pursue career growth by taking assignments in other countries, where they are exposed to unique cultural experiences while acquiring new business skills; approximately 900 employees were on global assignment in 2010. We also tailor development programs to promote career growth in particular markets. Our career development workshop is designed to help employees at all levels think strategically about their career development plans, and to facilitate discussions with their managers. Some 40,000 employees have participated in the workshop since its launch in 2008, and they have provided positive and helpful feedback.
maag/Lahip dlp We set clear, consistent expectations for our managers and leaders, and give them opportunities to gain critical skills and knowledge by attending internal and external courses, connecting with other managers, and taking on new challenges. In 2010, Intel was recognized by the Hay Group for our development of current and future managers and leaders, placing third on the rm’s “20 Best Companies for Leadership” list. Many of our management and leadership development programs focus on supporting employees during transition periods, such as when they assume leadership roles for the rst time or advance to more senior positions. We have seen continuous improvement in our manager and leader performance to expectations since we began implementing these programs: n maag. “New maag. “New to Management” is a program designed for rsttime managers to support a successful transition during their rst year of leading people. New managers attend workshops facilitated by senior leaders, take advantage of self-study resources, and have access to transition coaching. Throughout the year, they have a strong support network that enables them to lead highly engaged teams and obtain great business results.
www.intel.com/go/responsibility 63 Back
Next
Previous View
s o C I A L
f A C t o r s
3 Letter From Our CEO overvIew
5 Corporate Prole 9 Strategy and Management Approach GovernAnCe And eConomIC fACtors
20 Financial Performance and Economic Impact Impac t 25 Governance, Ethics, and Public Policy Polic y envIronmentAL fACtors
32 32 Environment Environment soCIAL fACtors
58 58 wkplac wkplac Our Approach to Empowering Employees KeY Issues & PrIorItIes
> Career Growth and Development Development Communication and Recognition Workforce Diversity and Inclusion Compensation, Benets, and Work/Life Effectiveness Effectiveness Health and Safety, and Employee Wellness Performance Summary & Goals
epic maag. To maag. To support the ongoing development of our seasoned managers and leaders, we offer 20 core instructor-led courses, as well as online performance training and support modules that provide “just-in-time” help. An online Manager Dashboard tool includes resources
Il uiiy
to help managers run the “people” side of their business. si La. Leading La. Leading for Extraordinary Results (LER) is an intensive ve-day residential program that helps leaders develop clarity of vision and personal leadership, so they can create new possibilities for their people and Intel. In addition to LER, our senior leadership curriculum includes several key courses that cover personal leadership, execution, strategy, and organizational leadership. The courses are offered globally, and Intel executives teach many of them. We also offer action learning programs that blend strategic business needs with senior leader learning and growth.
34.6 hours of training per employee.
112 1 12 GRI GRI Content Index Index 119 1 19 UN Global Compact— Communication on Progress Progress
Access the Report Builder 2010 2010 Corporate Responsibility Report
2010 Il uiiy saiic Total learning hours delivered1
2,626,687
Total number of training attendees
1,053,954
maag a La fback sy. Through sy. Through this survey, administered twice a year, employees evaluate how well their managers are communicating, motivating, and developing their teams. Managers share the survey results—both strengths and areas for improvement—with their teams and develop action plans. We also factor the results into our annual
m Il uiiy’ ial c a l by ply l, h lag hi kill a klg a paicla bjc ach h ply.
manager performance reviews. In 2010, more than 85% of managers and leaders received constructive feedback through this process.
tii Aiac
APPendIx
11 1 11 About This Report/Approach to Assurance Assurance
Intel University provides a comprehensive development curriculum, including new employee orientation, cultural integration, skills training, professional certication, and external education. Training programs cover a broad range of topics, such as project management, problem-solving, effective decision-making, cross-cultural training, and technical subjects. Training magazine again recognized our strong focus on employee development by ranking Intel number 37 on its list of the top 125 global training organizations in 2010.
These programs focus on current business challenges to ensure that real work is accomplished during leadership development. In addition, we have an executive coaching program that links senior leaders with professional internal and external coaches.
79 79 Supply Supply Chain Chain 92 Contributions to Society Societ y
In 2010, Intel invested approximately $254 million in employee training and development, including instructor-led and e-learning courses. That amount translates to an investment of approximately $3,200 and an average of
Training programs cover a broad range of topics, such as project management, problem-solving, effective decision-making, cross-cultural training, and technical subjects.
Number of employee volunteer instructors
4,742
Includes a mix of training methods, such as instructor-led/classroom, virtual classroom, web-based, and other (multimedia/on-the-job activity).
1
Our Tuition Assistance Program provides nancial assistance to eligible U.S. employees who are completing job-related degree programs or coursework. In 2010, we invested $8.1 million in the program, helping more than 1,266 employees—2.8% of those eligible—pursue educational opportunities.
www.intel.com/go/responsibility 64 Back
Next
Previous View
s o C I A L
f A C t o r s
3 Letter From Our CEO overvIew
5 Corporate Prole 9 Strategy and Management Approach GovernAnCe And eConomIC fACtors
20 Financial Performance and Economic Impact Impac t 25 Governance, Ethics, and Public Policy Polic y envIronmentAL fACtors
32 32 Environment Environment soCIAL fACtors
58 58 wkplac wkplac Our Approach to Empowering Employees KeY Issues & PrIorItIes
Career Growth and Development Development > Communication and Recognition Workforce Diversity and Inclusion Compensation, Benets, and Work/Life Effectiveness Effectiveness Health and Safety, and Employee Wellness Performance Summary & Goals
Communication and Recognition Open and direct communication has been a hallmark of Intel culture since the company’s founding. Employees report that they value getting the straight scoop from their leaders and managers, and appreciate being able to speak freely about issues that concern them. Intel’s open door philosophy gives employees access to all levels of management to address work-related concerns. Employee surveys indicate that this philosophy promotes two-way communication, contributes to organizational health, improves productivity, and decreases turnover. Because Intel’s success depends on all employees understanding how their work contributes to the company’s overall business strategy, we use a broad range of electronic and interpersonal channels to keep employees informed. Those channels include intranet news articles, Open Forums, webcasts, collaborative webjams, cyber-chats, quarterly Business Update Meetings, small-group executive roundtables, and informal brown-bag lunches. Our overall goal is to ensure that employees receive timely information and candid answers to their questions. Circuit, our employee intranet portal, provides corporate and local Intel news, and information about workplace services and benets.
We also strive to embed a culture of recognition and appreciation. From simple and sincere personal thank-yous to formal banquets, we offer multiple levels of recognition that reward employees for their accomplishments. Recognition ranges from corporate-wide programs to local programs created by individual business groups to acknowledge the achievement of specic goals. Formal programs recognize employees for their performance to Intel Values, years of service, volunteerism, Intel University instructor contributions, and environmental efforts to conserve energy, prevent pollution, and bring environmental innovation to our operations. Cpa-i rcgii Pga Intel Quality Award (IQA)
IQAs are given annually to a few Intel organizations that have made long-term commitments to operational excellence and have demonstrated performance to Intel Values Values.. Organizations complete applications that are presented to a panel of executive judges, who select the winners. Winning organizations are expected to act as role models and mentors for groups that subsequently enter the IQA application process.
Intel Achievement Award (IAA)
The IAA is the company’s highest honor for personal and small-team accomplishments. Less than one-half of 1% of all employees receive
79 79 Supply Supply Chain Chain 92 Contributions to Society Societ y APPendIx
11 1 11 About This Report/Approach to Assurance Assurance 112 1 12 GRI GRI Content Index Index 119 1 19 UN Global Compact— Communication on Progress Progress
Access the Report Builder 2010 2010 Corporate Responsibility Report
Approximately 90% of our employees use Circuit as their web browser’s home page. We also reach employees through an expanded network of digital video screens that broadcast news and information in our factories, lobbies, and cafeterias. Employees are encouraged to utilize Intel’s internal social media channels, such as blogs, wikis, and online forums, for both business and collaboration purposes, and to build a sense of community across our global sites. Senior leaders and other employees publish personal essays to open dialogue about business issues, challenges, and opportunities. Employees have the opportunity to comment on news articles and features, adding their valuable knowledge and perspectives to the corporate dialogue. According to
an IAA each year. Winners are rewarded with company stock and an invitation to a banquet hosted by Intel President and CEO Paul Otellini.
Division Recognition Award (DRA)
DRAs recognize employees for reaching critical milestones or completing projects that demonstrate a strong commitment to Intel Values. DRAs are presented to employees in front of their peers at quarterly Busines s Update Meetings.
Spontaneous Recognition Award
Spontaneous recognition can be given at any time to show appreciation to a peer, subordinate,
(SRA)
or manager, and may include cash, a gift card, or other reward.
www.intel.com/go/responsibility
industry benchmarks, few other major companies embrace employee use of social media and media and welcome employee commentary as openly as we do.
w clba h accplih bi gaizai, a, a iiial hgh cpay-i cgii pga.
65 Back
Next
Previous View
s o C I A L
f A C t o r s
3 Letter From Our CEO overvIew
5 Corporate Prole 9 Strategy and Management Approach GovernAnCe And eConomIC fACtors
20 Financial Performance and Economic Impact Impac t 25 Governance, Ethics, and Public Policy Polic y envIronmentAL fACtors
Workforce Diversity and Inclusion Our ability to innovate depends on ideas, and great ideas come from great people. The wide range of perspectives that we gain by hiring and developing talent from a diverse, global labor pool gives us a better understanding of the needs of our customers, suppliers, and communities, and helps us advance our leadership in both technology and corporate responsibility.
addition, 30% of the members of the Intel Board of Directors are Directors are women. Still, we continue to work on increasing the number of under-represented minorities and technical females in managerial and senior leadership positions. As such, we have key initiatives designed to improve recruitment, retention, and development of African Americans, Hispanics, Native Americans, and technical women in leadership positions.
Diversity is an integral part of Intel’s competitive strategy and vision. Studies show that employees working in a diverse environment tend to feel more fullled, creative, and productive on the job, resulting resulting in increased increased productivity productivity,, efciency efciency,, and innovation. We strive to continuously advance a work environment that honors, values, and respects all of our employees.
We have three leadership councils made up of Intel’s most senior African American, Hispanic, and female leaders, who serve as visible role models, sponsors, and passionate voices for employees at Intel. They are each
32 32 Environment Environment soCIAL fACtors
58 58 wkplac wkplac Our Approach to Empowering Employees KeY Issues & PrIorItIes
Career Growth and Development Development Communication and Recognition > Workforce Diversity and Inclusion Compensation, Benets, and Work/Life Effectiveness Effectiveness Health and Safety, and Employee Wellness Performance Summary & Goals 79 79 Supply Supply Chain Chain 92 Contributions to Society Societ y APPendIx
11 1 11 About This Report/Approach to Assurance Assurance 112 1 12 GRI GRI Content Index Index 119 1 19 UN Global Compact— Communication on Progress Progress
Access the Report Builder 2010 2010 Corporate Responsibility Report
Icaig Lahip diiy. We diiy. We have improved the diversity of Intel’s workforce in several key categories in recent years. Since the creation of Intel’s Women’s Initiative in 2004, for example, the number of women in technical mid- to senior-level Intel jobs has grown by 24%. In
Intel respects, values, and welcomes diversity in its workforce, as well as in its customers, its suppliers, and the global marketplace. Intel will comply with applicable laws and provide equal employment opportunity for all applicants and employees without regard to race, color, religion, sex, national origin, ancestry, age, disability, veteran status, marital status, sexual orientation, gender identity, or genetic information. Intel also makes reasonable accommodations for disabled employees. Intel prohibits harassment of any individual on any of the bases listed above. Our goal is to be world-class in diversity, and we develop annual diversity action plans that are monitored quarterly, with rigorous indicators related to recruitment and performance management. We have been recognized for our diversity practices, including being named to Working Mother magazine’s “100 Best Companies” list, and have earned a perfect score on the Human Rights Campaign’s Corporate Equality Index for nine consecutive years for our policies and practices that support our lesbian, gay, bisexual, and transgender employees.
actively engaged in activities focused on hiring, retaining, and developing our diverse talent. Managers regularly hold in-depth career discussions with employees, challenging them to take on assignments that increase their capabilities and opportunities for growth. In addition to customized internal career development and training, we offer employees external leadership training opportunities at places such as the African American Leadership Institute and the Latino Leadership Institute, which are both located at the University of California at Los Angeles.
“ We seek to attract the best talent, and once they are at Intel, we work hard to ensure that every employee has opportunities to thrive and make it to the top without cultural, gender, or racial barriers to impede their progress.” Rosalind Hudnell, Director, Global Diversity and Inclusion
www.intel.com/go/responsibility 66 Back
Next
Previous View
s o C I A L
f A C t o r s
3 Letter From Our CEO overvIew
5 Corporate Prole 9 Strategy and Management Approach GovernAnCe And eConomIC fACtors
20 Financial Performance and Economic Impact Impac t 25 Governance, Ethics, and Public Policy Polic y envIronmentAL fACtors
32 32 Environment Environment soCIAL fACtors
58 58 wkplac wkplac Our Approach to Empowering Employees KeY Issues & PrIorItIes
Career Growth and Development Development Communication and Recognition > Workforce Diversity and Inclusion Compensation, Benets, and Work/Life Effectiveness Effectiveness Health and Safety, and Employee Wellness Performance Summary & Goals
Cliaig a sppi nk. We nk. We provide managers with tools and resources for rewarding and recognizing diversity efforts within their groups. We also encourage employees—from recent college graduates to Intel veterans—to join one of 20 chartered Intel employee afnity groups.
Urban League, and National Action Council for Minorities in Engineering. By establishing Intel as a trusted advisor and by building strong relationships with external organizations, we continue to enhance our own learning, help to achieve our diversity goals, share our best practices with others,
These groups are organized around racial groupings, national origin, religious beliefs, gender, sexual orientation, or gender identity, as well as other afnities such as parenthood and disability. They provide a powerful means of support and integration for employees, and opportunities to participate in a variety of programs, such as cultural awareness events, mentoring, and community involvement activities. Intel provides funding for group activities; dedicated support staff; space for meetings, study, or prayer; and communications vehicles.
and advance diversity beyond our own organization. We are continuing to evolve our diversity practices to ensure a genuine focus on global diversity and inclusion, and will continue to implement new programs based on a global assessment—not one developed primarily from a U.S.-centric point of view. For regular updates and newsletters from our Diversity leadership team, visit our Diversity Diversity web web site.
Iig i Il’ tchical a Lahip Pipli. In Pipli. In order
A number of Intel programs are designed to support the development
to build stronger pipelines for employees who are pursuing technical and leadership careers, Intel provides a variety of development experiences, including site-based leadership training and a networking series targeted for African American, Hispanic, and female employees. Internal and external research has validated the importance of providing experiences for various populations who might be isolated in the environment. These programs deliver specic leadership tools; careerenhancing strategies; and access to peers, coaches, and some of Intel’s most senior leaders and technologists.
and retention of female employees, especially in technical and leadership areas. The following are a few examples.
79 79 Supply Supply Chain Chain 92 Contributions to Society Societ y APPendIx
11 1 11 About This Report/Approach to Assurance Assurance 112 1 12 GRI GRI Content Index Index 119 1 19 UN Global Compact— Communication on Progress Progress
Bilig mliclal Aa. Several Aa. Several Intel programs are designed to promote cultural awareness among employees. For example, frequent company events give employees opportunities to share their heritages and connect with others. We provide intercultural training, such as “Microinequities” and “Gender Differences in Communication,” and numerous discussion forums within our employee communications portal that foster respectful dialogue between and among employees. Bilig eal Alliac. Intel Alliac. Intel is active on the boards and industry committees of national diversity organizations, such as the Anita Borg
Access the Report Builder 2010 2010 Corporate Responsibility Report
Il w’ Iiiai
Institute, Society of Hispanic Professional Engineers, Society of Women Engineers, National Society of Black Engineers, American Indian Society
• Women Principal Engineers (PEs) and Fellows Forum. This Forum. This 100% technology-focused forum is designed to offer women PEs, Intel Fellows, and those likely to be promoted to PE opportunities to present their work in front of a highly technical audience. • Women’s Leadership Exchange. Site-based Exchange. Site-based luncheon forums presented by the Women’s Leadership Council provide opportunities for female employees to connect and receive high-level coaching and mentoring. Over the past three years, the council has held numerous events at Intel sites, reaching more than 800 of our senior female leaders. • Women at Intel Network. This Network. This employee group has 16 chapters worldwide and hosts six development conferences a year. • Intel Global Women’s Initiative Portal. In Portal. In 2010, we launched an interactive portal for all employees where they can connect with women around the world and interact with female leaders at Intel through blogs and discussion forums.
www.intel.com/go/responsibility
of Engineers and Scientists, Out & Equal Workplace Advocates, National
67 Back
Next
Previous View
s o C I A L
f A C t o r s
3 Letter From Our CEO overvIew
5 Corporate Prole
diiy daa
9 Strategy and Management Approach
We continue to focus on efforts to increase the representation of women in our global workforce, including investments in the talent pipeline for women in engineering and technical disciplines.
GovernAnCe And eConomIC fACtors
20 Financial Performance and Economic Impact Impac t
2010 wli wkc by G
25 Governance, Ethics, and Public Policy Polic y envIronmentAL fACtors
fal
mal
tal
U.S. Workforce
10,580
33,202
43,782
24.2%
75.8%
Non-U.S. Workforce
11,526
24,983
31.6%
68.4%
22,106
58,185
28%
72%
32 32 Environment Environment soCIAL fACtors
wli tal
58 58 wkplac wkplac Our Approach to Empowering Employees KeY Issues & PrIorItIes
Career Growth and Development Development
Aag % wli
80,2911
Regula r employees only. Total differs slightly from other regular employee totals in this sectio n due to some individuals not reporting gende r.
1
thi abl h li kc by g. dpi ci i a ip i ciig a i pga, h all pcag ha ai laily a ic 2006. th li pcag a 28% i 2009, 29% i 2008, 29% i 2007, a 30% i 2006.
Communication and Recognition
2010 u.s. wkc by rpig Cagy
> Workforce Diversity and Inclusion Compensation, Benets, and Work/Life Effectiveness Effectiveness Health and Safety, and Employee Wellness
Aica Aica
Aia/Pacic Ila
Cacaia
Hipaic
nai Aica
oh1
tal
wkc Female
Performance Summary & Goals 79 79 Supply Supply Chain Chain
Male
92 Contributions to Society Societ y APPendIx
11 1 11 About This Report/Approach to Assurance Assurance
tal
112 1 12 GRI GRI Content Index Index
Female
390
3,44 8
5,664
917
80
82
10,581
3.7%
32.6%
53.5%
8.7%
0.8%
0.8%
100.0%
1,148
8,889
19,890
2,581
209
484
33,201
3.5%
26.8%
59.9%
7.8%
0.6%
1.5%
100.0%
1,538
12,337
25,554
3,498
289
566
43,782
18
263
761
42
6
15
1,105
1.6%
23.8%
68.9%
3.8%
0.5%
1.4%
100.0%
80
1,730
4,463
195
18
55
6,541
1.2%
26.4%
68.2%
3.0%
0.3%
0.8%
100.0%
98
1,993
5,224
237
24
70
7,646
ocial a maag
119 1 19 UN Global Compact— Communication on Progress Progress Male
tal
Access the Report Builder
“Other” includes employees who reported as multi-racial and those who did not report race.
1
2010 2010 Corporate Responsibility Report
36,509
www.intel.com/go/responsibility
thi abl pi a high-ll ay u.s. kc by pig cagy. t acc ail u.s. gaphic aiic, h iaci u.s. eply dgaphic (eeo -1) l diiy diiy b b i, h y ca aa by pii yp.
68 Back
Next
Previous View
s o C I A L
f A C t o r s
3 Letter From Our CEO overvIew
5 Corporate Prole 9 Strategy and Management Approach GovernAnCe And eConomIC fACtors
20 Financial Performance and Economic Impact Impac t 25 Governance, Ethics, and Public Policy Polic y envIronmentAL fACtors
32 32 Environment Environment soCIAL fACtors
58 58 wkplac wkplac Our Approach to Empowering Employees
2010 u.s. Hiig daa Ya
tal nb epl y y Hi
miii a Pcag u. s. s. Hi
2010
2,354
57% (1,336 of 2,354 hires)
24% (576 of 2,354 hires)
2009
1,676
42% (701 of 1,676 hires)
24% (396 of 1,676 hires)
2008
4,060
56% (2,275 of 4,060 hires)
31% (1,246 of 4,060 hires)
2007
3,045
52% (1,587 of 3,045 hires)
26% (787 of 3,045 hires)
2006
3,056
50% (1,530 of 3,056 hires)
29% (882 of 3,056 hires)
I 2010, a pg a gal hiig iii a a pcag al hi. th pcag al a a pcag al hi ai a 2009.
2010 wli si maag a Gac Bi Ba dic
KeY Issues & PrIorItIes
fal a Pca g g u.s. Hi
Cpa o c
tp 50 i tal Cpai
mal
Career Growth and Development Development Communication and Recognition > Workforce Diversity and Inclusion Compensation, Benets, and Work/Life Effectiveness Effectiveness Health and Safety, and Employee Wellness
African American
—
—
—
—
—
—
Asian/Pacic Islander
—
—
5
19%
7
14%
Caucasian
7
70%
16
59%
30
60%
Hispanic
—
—
—
—
—
—
Native American
—
—
—
—
—
—
Unidentied
—
—
—
—
4
8%
Performance Summary & Goals 79 79 Supply Supply Chain Chain 92 Contributions to Society Societ y
fal
APPendIx
African American
—
—
—
—
—
—
11 1 11 About This Report/Approach to Assurance Assurance
Asian/Pacic Islander
—
—
1
4%
—
—
112 1 12 GRI GRI Content Index Index
Caucasian
3
30%
5
19%
8
16%
119 1 19 UN Global Compact— Communication on Progress Progress
Hispanic
—
—
—
—
—
—
Native American
—
—
—
—
—
—
Unidentied
—
—
—
—
1
2%
10
100%
27
100%
50
100%
Access the Report Builder 2010 2010 Corporate Responsibility Report
tal
thi abl pi 2010 ya- iiy iai Il’ Ba dic, cpa c, a p 50 ci i cpai li. th pii
www.intel.com/go/responsibility
Chaia ha b hl by a a ic may 2009. A Aal sckhl’ mig i may 2011, i all h ic i a lc, h pcag h Ba ill ai a 30%.
69 Back
Next
Previous View
s o C I A L
f A C t o r s
3 Letter From Our CEO overvIew
5 Corporate Prole 9 Strategy and Management Approach GovernAnCe And eConomIC fACtors
20 Financial Performance and Economic Impact Impac t 25 Governance, Ethics, and Public Policy Polic y envIronmentAL fACtors
32 32 Environment Environment soCIAL fACtors
58 58 wkplac wkplac Our Approach to Empowering Employees KeY Issues & PrIorItIes
Career Growth and Development Development Communication and Recognition Workforce Diversity and Inclusion > Compensation, Benets, and Work/Life Effectiveness Effectiveness Health and Safety, and Employee Wellness Performance Summary & Goals 79 79 Supply Supply Chain Chain 92 Contributions to Society Societ y APPendIx
11 1 11 About This Report/Approach to Assurance Assurance 112 1 12 GRI GRI Content Index Index 119 1 19 UN Global Compact— Communication on Progress Progress
Access the Report Builder 2010 2010 Corporate Responsibility Report
Compensation, Benets, and Work/Life Effectiveness Intel’s comprehensive compensation and benets pro-
The Employee Cash Bonus Program (ECBP) pays cash incentives to employees twice a year, allowing them to share in Intel’s success. On top of their ECBP payouts, employees may receive an additional two days of pay each year based on the results in our Customer Excellence Program
gram is designed to attract, retain, and reward the people responsible for the company’s long-term growth and continuing record of innovation. We strive to provide tools and benets that support the work/life needs of different employees—from working parents and those with eldercare responsibilities to those in the military reserves.
(CEP), which is explained in the Intel Quality System Handbook. Handbook . CEP measures overall customer satisfaction and drives corporate or business unit improvement actions. In 2010, employees received the additional two days of pay under the program as a result of the company receiving a record 91% “Delighted” score from customers. Intel has exceeded the 75% “Delighted” score goal since 2006, enabling employees to receive two extra days of pay for ve years in a row.
Cpai
In addition to ECBP, Intel shares prots with employees worldwide by paying annual incentive cash payments through our Employee Bonus (EB)
Intel’s Total Compensation, or “T-Comp,” approach aligns company, employee, and stockholder interests, and provides employees with incentives to focus on meeting or exceeding business objectives. T-Comp is based on ve guiding principles that support our philosophy of rewarding both individual performance and corporate success: meritocracy and egalitarianism, market competitiveness, alignment with business performance, promotion of health and welfare, and balance between employee and stockholder needs. Intel targets employee cash compensation (base pay plus bonuses) at above-market averages, as long as the company’s performance is comparable to or better than the performance of our peer companies. In 2010, we also invested in communications and education efforts to increase transparency of our pay competitiveness and design principles, resulting in improved perceived value of pay and benets for existing and prospective employees. For more information on compensation and benets at Intel locations worldwide, visit our Compensation and Benets Benets web web site or read our most recent annual report and proxy statement. statement . Our bonus programs are cornerstones of the T-Comp philosophy, linking employees’ compensation directly to Intel’s nancial and operational performance metrics. Higher level employees, who have a wider job scope and greater ability to affect the company’s performance, receive a higher per-
plan. The formula for determining EB payouts is based on three equally weighted components: relative nancial performance, absolute nancial performance, and operational performance. Since 2008, we have included criteria related to environmental sustainability metrics, and in 2010 also added other metrics related to corporate responsibility, such as performance on the OHS and external reputation measures. For more information, see the Environment Environment section section of this report. Instead of the EB program, eligible sales and marketing employees participate in our Commission program, which provides incentives linked to sales performance. eply Cah B Pga (eCBP) Ya
Aal Pay i day Pay
% Pay
eply B (eB) Pla eB mlipli
2006
15.1
5.8%
2.33
2007
17.3
6.7%
3.49
2008
15.2
5.9%
2.66
2009
16.7
6.4%
3.92
2010
26.4
10.2%
4.24
thi abl illa hiical eCBP pay a eB lipli. th eB lipli i
www.intel.com/go/responsibility
greater ability to affect the companys performance, receive a higher per centage of their compensation at risk through our bonus programs.
appli ach ligibl iiial ply’ ag a. I a ply’ ag i 2010 a $1,000, $1,000, h p ly’ pay l h a b 4.24 $1,000, $4,240.
70 Back
Next
Previous View
s o C I A L
f A C t o r s
3 Letter From Our CEO overvIew
5 Corporate Prole
eqiy Pga
9 Strategy and Management Approach
To enable employees to share in Intel’s success and align employee interests with those of our stockholders, we grant equity to more than 90% of our employees annually, including restricted stock units (RSUs) and stock
GovernAnCe And eConomIC fACtors
20 Financial Performance and Economic Impact Impac t 25 Governance, Ethics, and Public Policy Polic y envIronmentAL fACtors
32 32 Environment Environment soCIAL fACtors
58 58 wkplac wkplac Our Approach to Empowering Employees KeY Issues & PrIorItIes
Career Growth and Development Development Communication and Recognition Workforce Diversity and Inclusion > Compensation, Benets, and Work/Life Effectiveness Effectiveness Health and Safety, and Employee Wellness Performance Summary & Goals 79 79 Supply Supply Chain Chain 92 Contributions to Society Societ y APPendIx
11 1 11 About This Report/Approach to Assurance Assurance 112 1 12 GRI GRI Content Index Index 119 1 19 UN Global Compact— Communication on Progress Progress
Access the Report Builder 2010 2010 Corporate Responsibility Report
options. Share-based compensation totaled $917 million in 2010. Through stock options and RSUs, employees may receive an equity interest in the company, acquire a stake in Intel’s long-term growth, and potentially benet from capital appreciation. Although all employees who receive stock grants receive RSUs, our more senior-level employees generally receive a percentage of their grants in the form of stock options. Regular full-time and part-time employees are eligible to receive RSU and/or stock option grants at the time of hire, and may be recommended for additional grants during annual or mid-year performance reviews. Under our Stock Purchase Plan, eligible employees can purchase stock through payroll deductions at 85% of Intel’s stock price at the lower of the beginning or the end of a subscription period. All regular full-time and parttime employees and interns are eligible to participate in this plan.
Halh B Intel’s innovative approach to healthcare focuses on providing comprehensive plan coverage to employees and their families to ensure a healthy, productive, and engaged workforce. Our basic benets package includes medical, dental, vision, and prescription drug benets. Our healthcare programs provide 100% coverage for preventive services as well as nancial protection against a serious illness. Intel has developed a strategy that recognizes the varying coverage needs of our employees and focuses on controlling costs by engaging our workforce with appropriate nancial incentives to foster cost-conscious choices. Today, Intel offers choice through ve different medical plans (Copayment, Coinsurance, High Deductible, Consumer Driven, and HMO); each offers comparable coverage and quality. Intel has been a leader in offering consumer-based health plans; approximately 65% of our employees now participate in such plans. By encour-
expensive or intensive actions, access nurse advice lines for supportive guidance, or visit on-site clinics and urgent care centers before seeking care in the emergency room, we can help them spend on average about 35% less than employees enrolled in traditional plans, while receiving the same level of coverage and quality of services. Intel shares these savings with employees in the form of no or low monthly premiums. We also extend medical and dental benets coverage to same-sex domestic partners. In addition, we provide autism, infertility, transgender, and adoption benets to our employees. Our total spending on healthcare benets in 2010 was $404.8 million, including medical coverage for active employees, prescription drug coverage, and dental insurance. Intel’s health premium spending averages approximately $796 per month per employee, boosting each employee’s compensation package by approximately $9,554 annually (individual amounts vary depending on the plan and usage). We also offer an Employee Assistance Program that provides free short-term professional counseling services to help employees and their dependents through difcult times. See “Wellness “ Wellness Programs Programs”” for information on our award-winning Health for Life wellness program.
ri B ri Planning for retirement is a shared responsibility between Intel and each employee. We encourage our employees to leverage all possible resources to create a savings and investment strategy that will provide a secure and comfortable retirement. Our benets vary by country but can include postretirement medical benets as well as: 401(k) savings, Intel contributions to employee retirement plans, and dened benet plans. Eligibility for these plans varies by country, legal requirements, and employee tenure. Intel considers market practice, retirement readiness, regulatory requirements, and company affordability when funding employee retirement plans. In the U.S., in 2010 we contributed 6% of eligible earnings to an employee’s retirement accounts irrespective of the employee’s ability to save. For employees who retire from Intel in the U.S., we also provide funds based on tenure, which enable employees to purchase retirement medical coverage.
www.intel.com/go/responsibility
aging our employees to use available decision support tools, nd less
71 Back
Next
Previous View
s o C I A L
f A C t o r s
3 Letter From Our CEO overvIew
5 Corporate Prole
spcial La Pga
9 Strategy and Management Approach
Intel provides special paid time off in addition to our vacation and personal absence policies. Our approach creates a robust leave program for employees through a combination of federal and state leave entitlements and
GovernAnCe And eConomIC fACtors
20 Financial Performance and Economic Impact Impac t 25 Governance, Ethics, and Public Policy Polic y envIronmentAL fACtors
32 32 Environment Environment soCIAL fACtors
58 58 wkplac wkplac Our Approach to Empowering Employees KeY Issues & PrIorItIes
Career Growth and Development Development Communication and Recognition Workforce Diversity and Inclusion > Compensation, Benets, and Work/Life Effectiveness Effectiveness Health and Safety, and Employee Wellness Performance Summary & Goals 79 Supply 79 Supply Chain Chain 92 Contributions to Society Societ y APPendIx
11 1 11 About This Report/Approach to Assurance Assurance 112 1 12 GRI GRI Content Index Index 119 1 19 UN Global Compact— Communication on Progress Progress
Access the Report Builder 2010 2010 Corporate Responsibility Report
Intel’s leave guidelines. sabbaical Pga. Full-time Pga. Full-time employees in the U.S. and Canada receive an 8-week paid sabbatical upon completion of each seven years of service. Annual vacation time can be added to sabbaticals, resulting in up to 12 weeks of paid time off. Employees can apply to extend their sabbatical up to six months to teach, volunteer, or complete educational opportunities that signicantly enhance our business or benet the community. In 2010, 4,627 employees took sabbaticals, returning refreshed and revitalized. Pgacy La. Through La. Through a combination of legal requirements and Intel’s own leave guidelines, female employees can take advantage of Intel’s Pregnancy Leave benet. Although unpaid, it allows employees to take time off when their doctors say they are unable to work. Employees often supplement their income during Pregnancy Leave with short-term disability benets. In 2010, 603 female employees used our Pregnancy Leave benet. Additionally, either parent may take leave to bond or care for a newborn or adopted child, or a child placed with them through foster care. Pal La. U.S. La. U.S. employees who are experiencing compelling personal situations may be eligible for unpaid Personal Leave. Employees can apply for Personal Leave to handle family crises or emergencies, provide care for an ill family member (i.e., when such leave is not otherwise covered by the Family Medical Leave Act), or address certain situations not covered under Intel’s other leave programs. In 2010, 148 employees used our Personal Leave program. miliay La Abc a Aj Pay. Intel Pay. Intel supports employees who serve in the U.S. uniformed services or National Guard. Military Adjustment Pay compensates for the difference between an employee’s base pay and military pay. Intel has expanded Military Adjustment Pay for service in Iraq and Afghanistan and other emergencies,
including extending the duration of this benet to up to two years per deployment. The U.S. government has publicly recognized Intel for its commitment and continuing efforts in this area. In 2010, 111 employees used this benet. Il B a wk/Li Pga a a Glac • Paid sabbatical benet for U.S. and Canadian employees • Multiple leave programs, including personal, pregnancy, bonding, and military • Near-site childcare cent centers ers and back-up childcare programs • Elder-care and adoption assistance programs • Voluntary benets, including long-term care insurance, critical illness insurance, and group legal insurance • Comprehensive health benets, including medical, dental, vision, and employee assistance programs • Multiple retirement plan options, including 401(k), retirement cconontribution, dened benet, and post-retirement medical benets • Employee discount programs for online and local shopping, as well as Intel products • On-site tness and recreation facilities and programs • Free fruit and beverages at multiple locations • Commute reduction options • Employee use of Intel facilities for book clubs, music events, events, birthday parties, baby showers, etc. • Scholarship Scholarshipss for dependents of Intel employees (nearly $2.4 million in scholarships were awarded to over 600 recipients in 14 countries in 2010) • “Live Homework Help” for employees’ families, which included 25,000 tutoring sessions in 2010 • Family fun events, which reached over 85% of our employees and their families in 2010 • Employee Marketplace: An online forum for Intel employees where they can exchange items with their colleagues (about 400 items are sold or traded every month)
2010 2010 Corporate Responsibility Report www.intel.com/go/responsibility 72 Back
Next
Previous View
s o C I A L
f A C t o r s
3 Letter From Our CEO overvIew
5 Corporate Prole
wk/Li eci
9 Strategy and Management Approach
Intel is committed to fostering a culture that reduces barriers to work/ life effectiveness. Our commitment to exibility is driven by the demands of our global business environment, which require ongoing collaboration
GovernAnCe And eConomIC fACtors
20 Financial Performance and Economic Impact Impac t 25 Governance, Ethics, and Public Policy Polic y envIronmentAL fACtors
32 32 Environment Environment soCIAL fACtors
58 58 wkplac wkplac Our Approach to Empowering Employees KeY Issues & PrIorItIes
Career Growth and Development Development Communication and Recognition Workforce Diversity and Inclusion > Compensation, Benets, and Work/Life Effectiveness Effectiveness Health and Safety, and Employee Wellness Performance Summary & Goals 79 Supply 79 Supply Chain Chain 92 Contributions to Society Societ y APPendIx
11 1 11 About This Report/Approach to Assurance Assurance 112 1 12 GRI GRI Content Index Index 119 1 19 UN Global Compact— Communication on Progress Progress
Access the Report Builder
across multiple locations and time zones. Program options may vary by business unit and job type, and are tailored for each country based on market needs and statutory requirements. Our work/life effort focuses on four major areas: flibiliy. To help employees manage their work and personal responsiflibiliy. To bilities, we support a wide range of exible work options, including alternative start/stop times, compressed work weeks, part-time schedules, job sharing, ex time, compensatory time off, and telecommuting. Corporate guidelines govern each of these options, and managers and employees have discretion in developing solutions that meet both business and employee needs. Because most of these arrangements are negotiated directly between employees and their managers, Intel does not track usage centrally. However, surveys indicate that about 20% of our employees work a compressed work-week schedule, and more than 80% telecommute on a regular or temporary basis using company-provided laptops and remote access to the corporate network. Chil a el Ca. Our Ca. Our childcare programs are customized to meet the specic needs and market conditions at each site. Intel sponsors 15 near-site childcare centers in the U.S. that offer priority enrollment, back-up childcare, and holiday care. We also provide up to $50 a day (ve days a year) for back-up childcare reimbursement to all U.S. employees. In addition, we sponsor family childcare networks at our Arizona, New Mexico, and Oregon sites. To meet the scheduling needs of our manufacturing workforce, many family childcare network providers offer extended-hours care. Through our Dependent Care Assistance Program, employees can set aside up to $5,000 in pre-tax funds each year to pay for dependent care expenses. Employees can be reimbursed up to $5,000 per adoption, with a lifetime maximum of $15,000 (three adoptions). Intel is committed to supporting employees who have children or other dependents with special
employees and their families. We also provide on-site caregiver training for employees who are caring for an elder relative, and we maintain an elder-care intranet site with easy access to resources such as a nationwide elder-care support and referral service. rc. Our rc. Our intranet site includes a wide variety of work/life resources, and our Global Work/Life team sponsors ongoing seminars on topics such as weight management, coping with depression, identity theft, managing stress, caring for elder relatives, and working parent strategies. Our Employee Assistance Program provides employees with online resources and articles on a variety of work/life topics, as well as 24/7 access to consultants. Several discount programs offer employsic a Cic Cic. . Several ees reduced pricing on products and services, such as computers, cars, cell phones, home mortgages, banking, and home solar energy systems. We also have on-site cafeterias, tness centers, ATMs, dry-cleaning services, and private rooms for nursing mothers. More than 90% of our employees in the U.S. have access to commute reduction options, such as vanpool and transit subsidies and carpool matching services, as well as air shuttles between major sites. We strive to provide comfortable, attractive work spaces that promote collaboration among employees. To that end, over the past two years, we have redesigned more than 1 million square feet of ofce space, replacing tall gray cubicle walls with brightly colored, lower walls. We have added glass-walled conference rooms, and open lounges with at-screen TVs, armchairs, and kitchens, where free fruit and beverages are available throughout the day. The redesigned areas promote innovation, with plenty of space for people to work in groups. We also have incorporated “green” design principles into the plans. For more information, see the Environment Environment section of this report. For rsthand accounts of the Intel workplace, visit the Life at Intel web Intel web site, where employees share their experiences of working at Intel, including our work/life programs.
2010 2010 Corporate Responsibility Report www.intel.com/go/responsibility
needs, and we provide a comprehensive intranet site with resources for
73 Back
Next
Previous View
s o C I A L
f A C t o r s
3 Letter From Our CEO overvIew
5 Corporate Prole 9 Strategy and Management Approach GovernAnCe And eConomIC fACtors
Health and Safety, and Employee Wellness Our safety and wellness programs help employees enjoy a better quality of life. They also contribute to Intel’s suc-
20 Financial Performance and Economic Impact Impac t
cess, since employees who are physically and mentally t can be more productive.
25 Governance, Ethics, and Public Policy Polic y
2010 201 0 say upa
envIronmentAL fACtors
32 32 Environment Environment soCIAL fACtors
58 58 wkplac wkplac Our Approach to Empowering Employees KeY Issues & PrIorItIes
Career Growth and Development Development Communication and Recognition Workforce Diversity and Inclusion Compensation, Benets, and Work/Life Effectiveness Effectiveness > Health and Safety, and Employee Wellness Performance Summary & Goals 79 Supply 79 Supply Chain Chain 92 Contributions to Society Societ y APPendIx
11 1 11 About This Report/Approach to Assurance Assurance 112 1 12 GRI GRI Content Index Index 119 1 19 UN Global Compact— Communication on Progress Progress
Our days away case rate remained at compared to 2009, but we recorded reductions in the severity and the impact of employee injuries, with a 27% reduction in the total number of lost days and a 31% reduction in the number of restricted days. Our recordable rate increased by 17% in 2010, the result of increases in both cumulative trauma disorders (CTDs) and acute injuries within our manufacturing and platform organizations. Intel ended the year with an Occupational Safety and Health Administration (OSHA) recordable rate of 0.56, which is three times better than the U.S. semiconductor industry average. Although we work proactively to prevent the onset of CTD symptoms through employee training and awareness campaigns, CTDs continue to be the most frequent recordable type of injury at Intel. We recently introduced software that reminds employees to take rest breaks, and describes specic steps to take to reduce risks associated with computer use. In addition to proactive initiatives to prevent CTD injuries, we advocate that our employees report CTD symptoms as early as possible, so they can minimize injury severity by obtaining early care and addressing the root cause. With this focus on early reporting, Intel’s overall cumulative trauma injury report rate increased 15% worldwide in 2010, but we recorded a 48% reduction in CTD cases that involved lost or restricted time—an indication that early reporting is helping to minimize injury severity for our employees. While our 2010 safety performance compared to our peer companies is still exceptional, we are committed to improvement, guided by the Intel
Access the Report Builder
Environmental Health and Safety (EHS) policy to “provide a safe and injuryfree workplace.” We want more colleagues to go home injury-free during 2011, and we will continue to focus on core safety programs, injury reduction initiatives, and the next steps on our safety culture journey. Employees and contractors receive a wide range of safety training, starting with orientation sessions and continuing on the job. Instructor-led and web-based training classes are available to help employees understand their safety responsibilities, and to cover materials needed for specic jobs (such (such as elect electrical rical saf safety, ety, eergonomics rgonomics,, contr control ol of hazar hazardous dous ener energies, gies, and chemical safety). Courses are available in multiple languages, and are designed to be tailored for different Intel locations as needed. In 2010, there were 147,713 attendees at our EHS training courses, which included 60 web-based and 91 instructor-led classes. We continued to build on our Everybody, Everywhere, Everyday! (E3!) safety culture strategy in 2010 to reinforce our expectations about maintaining a strong safety culture. Through the 2010 E3! Safety Culture Survey, almost 25% of Intel’s employees were invited to provide feedback on their organization’s safety culture. The survey tool is based on our eight core expectations of a positive safety culture. Surveyed organizations used the feedback to identify their two or three priority safety culture focus areas and supporting tactics for the next two years. The majority of the organizations prioritized opportunities for continuous improvement in the areas of management safety leadership and actions, supportive communications, and employee engagement. say fc Aa 2011 • Grow Intel’s safety culture: Everyone, Everywhere, Everyday! (E3!) • Deliver effective, efcient global programs and standards to enable environmental, health, and safety success and compliance • Deliver quality customer service by building valued partnerships, supporting site needs, and tackling emerging issues
2010 2010 Corporate Responsibility Report www.intel.com/go/responsibility 74 Back
Next
Previous View
s o C I A L
f A C t o r s
3 Letter From Our CEO overvIew
5 Corporate Prole 9 Strategy and Management Approach
Halh a say maag sy
Recordable and Days Away Case Rates
GovernAnCe And eConomIC fACtors
20 Financial Performance and Economic Impact Impac t 25 Governance, Ethics, and Public Policy Polic y envIronmentAL fACtors
32 32 Environment Environment soCIAL fACtors
58 58 wkplac wkplac Our Approach to Empowering
2010 marked a major milestone for Intel, as we achieved company-wide certication for OHSAS 18001, the internationally recognized standard for occupational safety and health management systems. As a result, Intel
0.60 0.56
0.50 1
s e e y o l p m E 0 0 1 r e P e t a R
0.48
now maintains a fully integrated multi-site registration to both ISO 14001 and OHSAS 18001 that extends through December 31, 2013. In 2010, we did not receive any safety-related notices of violation as a result of EHS regulatory visits or audits.
0.48
0.46
0.43
0.40
0.30
0.20 0.13
0.10
0.11
0.12
0.11
0.11
Employees KeY Issues & PrIorItIes
Career Growth and Development Development
2006
Communication and Recognition Workforce Diversity and Inclusion Compensation, Benets, and Work/Life Effectiveness Effectiveness > Health and Safety, and Employee Wellness Performance Summary & Goals
Recordable Rate
2007
2008
20092
2010
Rate based on 100 emp employees loyees working for one year Figures restated due to new cases reported after close of reporting period
119 1 19 UN Global Compact— Communication on Progress Progress
Health and Safety Benchmarks
2
4.3 1
Il’ cabl a ijy a ill ica by 17% i 2010, hil ay aay ca a ai a. w bli ha all kplac iji a pabl, a ill ci c i 2011 icig a g ay cl.
APPendIx
112 1 12 GRI GRI Content Index Index
compliance and self-assessment activities, see “Managing “ Managing Environmental Performance ” and “Compliance Performance” “Compliance Information and Reporting, Reporting,”” respectively, in the Environment section of this report.
Days Away Case Rate
1
79 Supply 79 Supply Chain Chain 92 Contributions to Society Societ y 11 1 11 About This Report/Approach to Assurance Assurance
As new sites are added, we will continue to complete the necessary certication audits to add them to our integrated ISO 14001 and OHSAS 18001 multi-site registration. Going forward, we will complete initial certication audits for our new manufacturing operations in Vietnam and China. For more information about our EHS management systems and
In 2010, Intel achieved certication for OHSAS 18001, the internationally recognized standard for occupational safety and health management systems.
s e e y o l p m E 0 0 1 r e P e t a R
4.0
3.0
2.0 1.8
1.0
1.0 0.4
0.56 0.11
2009 OSHA 2 Recordable Rate
2009 OSHA3
2010 Intel
Days Away Case Rate
1
Rate based on 100 employees work working ing for one year Occupational Safety and Health Administration (OSHA) rate for U.S. manufacturers 3 OSHA rate for U.S. semiconductor conductor manufacturers 2
Access the Report Builder
each ya, Il cpa i halh a ay pac ih ablih
bchak lai h la aa aailabl all u.s. aac a u.s. icc aac. w ci p bh bchak i ijy pi. eal aa i h u.s. Ba Lab.
2010 2010 Corporate Responsibility Report www.intel.com/go/responsibility 75 Back
Next
Previous View
s o C I A L
f A C t o r s
3 Letter From Our CEO overvIew
5 Corporate Prole
wll Pga
9 Strategy and Management Approach
Intel is committed to developing a culture in which employees and their families are healthy, productive, and engaged in living wellness-oriented lifestyles every day. We have created a portfolio of health benet plans
GovernAnCe And eConomIC fACtors
20 Financial Performance and Economic Impact Impac t 25 Governance, Ethics, and Public Policy Polic y envIronmentAL fACtors
32 32 Environment Environment soCIAL fACtors
58 58 wkplac wkplac Our Approach to Empowering Employees KeY Issues & PrIorItIes
Career Growth and Development Development Communication and Recognition Workforce Diversity and Inclusion Compensation, Benets, and Work/Life Effectiveness Effectiveness > Health and Safety, and Employee Wellness Performance Summary & Goals 79 Supply 79 Supply Chain Chain 92 Contributions to Society Societ y APPendIx
11 1 11 About This Report/Approach to Assurance Assurance 112 1 12 GRI GRI Content Index Index 119 1 19 UN Global Compact— Communication on Progress Progress
Access the Report Builder
and wellness programs designed to encourage employees to evaluate, improve, and maintain their health and the health of their families. Intel’s Health for Life program is designed to inspire and motivate employees to take action toward achieving their best possible health and quality of life. The program includes on-site primary care (providing employees with convenient access to quality care at low cost), on-site biometrics, annual health assessments, tness programs, wellness seminars, u prevention, and personalized wellness coaching. These programs are deployed through Health for Life Centers at Intel’s major U.S. and international sites.
Intel was among 66 employers that received a 2010 Best Employers for Healthy Lifestyles award at the Leadership Summit, sponsored by the National Business Group on Health’s Institute on Innovation in Workforce Well-being. We earned a platinum award—the highest level given—in recognition of our wellness programs. We were also honored to receive recognition for the Intel Health for Life program from URAC and the Global Knowledge Exchange Network (GKEN) on Healthcare. URAC is a well-known, independent nonprot organization and a leader in promoting healthcare quality through its accreditation, education, and measurement programs. Intel’s Health for Life program was one of only six workplace award entries selected by a prestigious panel of judges in the inaugur inaugural al URAC and GKEN Int International ernational Health Pro Promotion motion Awards competition.
The centers are designed to be hubs for corporate and site-level wellness activities. The program’s 3-Step Wellness Check is now available in nine countries. It provides biometric screening, which includes cholesterol and glucose testing, basic measurements of blood pressure and body mass index, a health risk assessment, and wellness coaching. In 2010, 56% of Intel employees participated in the Wellness Check, receiving critical knowledge about their health status. Intervention programs, such as weight management, tness, and stress management, are available for lifestyle behavior modication. Expanding our focus on employee well-being and preventive healthcare, we opened a new on-site digital tness center at our Chandler, Arizona campus in 2010. The center offers state-of-the-art, Intel® embedded technology-based and Internet-connected machines that communicate tness information to users and provide an engaging, customized workout experience. The center enables employees to proactively manage their health and tness, and serves as a pilot for future corporate wellness centers.
“ The [Health for Life] Centers are here to help employees take care of themselves and manage their health. We want to provide our employees with access to convenient and high-quality care.” Brian Krzanich, Senior Vice President a nd General Manager, Manufacturing and Supply Chain
2010 2010 Corporate Responsibility Report www.intel.com/go/responsibility 76 Back
Next
Previous View
s o C I A L
f A C t o r s
3 Letter From Our CEO overvIew
5 Corporate Prole
oh Halh Iiiai
9 Strategy and Management Approach
We collaborate regularly on research and leadership initiatives as well as other health-related issues that may impact our industry or our workforce.
GovernAnCe And eConomIC fACtors
20 Financial Performance and Economic Impact Impac t 25 Governance, Ethics, and Public Policy Polic y envIronmentAL fACtors
32 32 Environment Environment soCIAL fACtors
58 58 wkplac wkplac Our Approach to Empowering Employees KeY Issues & PrIorItIes
Career Growth and Development Development
sIA Halh sy. Starting sy. Starting in 2005, we participated with the Semiconductor Industry Association (SIA), other member companies of the SIA, and a research team from Vanderbilt University on a multi-company study evaluating causes of death in employees who had worked in wafer fabrication facilities. The study, including over 100,000 semiconductor industry workers who were followed for up to nearly 30 years, was a retrospective epidemiological study designed to determine if wafer fabrication workers had an increased cancer risk compared to other semiconductor industry workers and to the general population. In 2010, the study was completed, and the results were published in the November issue of the Journal of Occupational Occupational and and Environmental Environmental Medicine Medicine.. The researchers found no association between work in wafer fabrication cleanrooms and either overall cancer mortality or mortality from any specic form of cancer.
Communication and Recognition Workforce Diversity and Inclusion Compensation, Benets, and Work/Life Effectiveness Effectiveness > Health and Safety, and Employee Wellness Performance Summary & Goals 79 Supply 79 Supply Chain Chain 92 Contributions to Society Societ y APPendIx
11 1 11 About This Report/Approach to Assurance Assurance 112 1 12 GRI GRI Content Index Index 119 1 19 UN Global Compact— Communication on Progress Progress
Access the Report Builder
nalcic say. Intel say. Intel is collaborating with multiple stakeholder groups to further dene, characterize, and manage the EHS implications of nanoelectronics—the manufacture of extremely small transistor devices—in the semiconductor industry. Intel is also taking the lead in developing EHS standards on the use of nanomaterials in manufacturing, and is currently the convener of the International Standards Organization (ISO) Technical Committee charged with developing international EHS standards on the use of nanomaterials. We continue to support the International Council on Nanotechnology, a multi-stakeholder group of industry, academic, and government institutions dedicated to promoting the sound use of nanomaterials in future applications. HIv/AIds. We HIv/AIds. We believe that employees affected by Acquired Immune Deciency Syndrome (AIDS) or the Human Immunodeciency Virus (HIV) do not present a health risk to other employees under normal working
conditions. We strive to ensure that affected employees have the same working conditions and performance requirements as other Intel employees. We have also developed employee education programs, and our employees have initiated community outreach efforts related to HIV/AIDS, with particular emphasis in areas of the world where we operate that have limited access to information on this topic.
Cii maag Intel Crisis Management (ICM) is our end-to-end response to crises and major business disruption events. The ICM vision is to “save lives, property, revenue, and business opportunity by leading prudent preparedness, appropriate response, and rapid recovery from natural and man-made disasters and disruptions.” ICM sets the standards and provides oversight for our Emergency Management (EM) program and our Business Continuity (BC) program across Intel, and requires every Intel organization to embed BC into their core business practices. This enables Intel to maintain and regularly test business continuity plans for all of its sites, facilities, and operations. As a global corporation with locations and suppliers all over the world, Intel must be prepared to respond to a wide range of disasters and keep the business running. The EM program is designed to quickly respond and ensure the safety of our personnel, safeguard our facilities, and begin the recovery of our business back to “normal operations.” In the event of a business disruption, our BC plans are designed to enable us to continue critical business functions, such as handling customer orders, overseeing production and deliveries, and managing our supply chain. The strong partnership, leadership, and linkage of EM and BC have made Intel an industry leader in these areas, and have helped facilitate our corporate response capabilities to a range of crises in recent years, such as the earthquake in China (Chengdu), the H1N1 pandemic, volcanic ash, political protests in Egypt, loss of critical suppliers, ooding, res, and other events.
2010 2010 Corporate Responsibility Report www.intel.com/go/responsibility 77 Back
Next
Previous View
s o C I A L
f A C t o r s
3 Letter From Our CEO overvIew
5 Corporate Prole 9 Strategy and Management Approach GovernAnCe And eConomIC fACtors
20 Financial Performance and Economic Impact Impac t 25 Governance, Ethics, and Public Policy Polic y
Performance Summary and Goals In 2010, our Organizational Health Survey results remained strong and provided valuable feedback in the areas where we have made signicant improvements over the past few years, as well as the areas where we still can improve. We were recognized by a number of external groups for our leadership, training, and diversity programs. While we saw improvements as a result of our investments aimed at increasing the pipeline of women and minorities in the technology industry, we still faced challenges in increasing the overall percentage of women and under-represented minorities in our global workforce. In the area of health and safety, we made good progress on improving early reporting of injuries and continued to expand our Health for Life wellness program to reach more employees at our sites around the world. We also completed workplace redesigns at a number of our sites, based on successful pilots in 2008, to create more open and exible workspaces that facilitate employee collaboration.
envIronmentAL fACtors
wkplac Gal a Pac
32 32 Environment Environment soCIAL fACtors
58 58 wkplac wkplac Our Approach to Empowering
2010 Gal
2010 Pac
Drive key improvements and hire at full availability for technical under-represented minorities and women.
While the overall percentage of females in our global work force declined slightly, we saw an increase in the representation of women in senior leadership We will continue both internal external initiativespositions. to strengthen the pipelineto ofinvest talentinand advance ourand diversity objectives.
Employees KeY Issues & PrIorItIes
Career Growth and Development Development Communication and Recognition Workforce Diversity and Inclusion Compensation, Benets, and Work/Life Effectiveness Effectiveness Health and Safety, and Employee Wellness > Performance Summary & Goals
Improve the organizational health of the company, as measured by improvements in our company-wide Organizational Health Survey.
Scores for 90% of the survey questions im proved from 2009 to 2010, with 73% of employees participating.
Maintain our world-class safety performance by achieving a target safety recordable rate of 0.36.
Intel’s 2010 2010 recordable rate was 0.56, which is a 17% increase over 20 09. Increases were registered in cumulative trauma disorders (CTDs), where we were driving and advocating early reporting with ou r employees, and in acute injuries within our manufacturing and platform organizations.
Improve early reporting of ergonomic-related ated injuries, specically CTDs, with a targeted First Aid to Recordable Ratio goal of 9:1. 9:1.
We did not meet o ur goal in 2010. 2010. Intel’s 2010 CTD First Aid to Recordable Ratio was 6.8:1, compared to 7.1:1 in 2009. During 2010, we saw a 15% worldwide increase in Intel’s overall CTD injur y report rate and an increase in C TD recordables. Early detection helped drive a 48% reduction in CTD cases that involved lost or restricted time from 2009 to 2010.
79 Supply 79 Supply Chain Chain 92 Contributions to Society Societ y APPendIx
11 1 11 About This Report/Approach to Assurance Assurance 112 1 12 GRI GRI Content Index Index 119 1 19 UN Global Compact— Communication on Progress Progress
Achi
Paially Achi
n m
In 2011, we will focus on making improvements in key areas identied in our 2010 Organizational Health Survey, including career development, decisionmaking, and manager effectiveness; driving continuous improvement in workforce diversity; and building on the solid foundation that we have established in health and safety performance. wkplac Gal 2011
Access the Report Builder
Drive key improvements and hire at full availability for technical under-represented minorities and women.
2010 2010 Corporate Responsibility Report www.intel.com/go/responsibility
Improve the organizational health of the company, as measured by o ur company-wide Organizational Health Survey.
78
Improve early reporting of ergonomic-re ergonomic-related lated injuries, specically C TDs, with a targeted First Aid to Recordable Ratio goal of 9:1. 9:1. Back
Next
Maintain our world-class safety performance, achieving a target safety recordable rate of 0.40.
Previous View
s o C I A L
f A C t o r s
3 Letter From Our CEO overvIew
5 Corporate Prole 9 Strategy and Management Approach GovernAnCe And eConomIC fACtors
20 Financial Performance and Economic Impact Impac t 25 Governance, Ethics, and Public Policy Polic y envIronmentAL fACtors
32 32 Environment Environment soCIAL fACtors
Supply Chain Respect for people and our planet. This principle underlies our business practices, and we expect the companies we do business with to apply the same principle. Because the most reliable, sustainable companies are those that honor their employees and care about the environment, Intel is working to continuously improve transparency and promote corporate responsibility throughout the global electronics supply chain.
58 58 Workplace Workplace 79 79 spply spply Chai Chai Our Approach to Supply Chain Responsibility Responsibility KeY Issues & PrIorItIes
2010 2010 Assessment and Audit Summary Summary Conict-Free Minerals m b iag.
Supplier Diversity Diversity Supplier Environmental Impact Performance Summary & Goals
1
2 3
92 Contributions to Society Societ y APPendIx
11 1 11 About This Report/Approach to Assurance Assurance 112 1 12 GRI GRI Content Index Index Ky spply Chai Lik
119 1 19 UN Global Compact— Communication on Progress Progress
Intel Supplier Site
10,000
~
Access the Report Builder
Number Intelcountries suppliers, in overof100
500
>
Number of supplier facilities that we completed a
217 Tons of plastic that wepaper savedand through
Intel Code of Conduct Intel Human Rights Principles Electronic Industry Citizenship Coalition Supplier Ethics Expectations
2010 2010 Corporate Responsibility Report www.intel.com/go/responsibility
risk assessment or audit for during 2010
packaging and shipment redesigns in 2010
Supplier Environmental Health and Safety Requirements
79 Back
Next
Previous View
s o C I A L
f A C t o r s
3 Letter From Our CEO overvIew
5 Corporate Prole 9 Strategy and Management Approach GovernAnCe And eConomIC fACtors
20 Financial Performance and Economic Impact Impac t 25 Governance, Ethics, and Public Policy Polic y envIronmentAL fACtors
32 32 Environment Environment soCIAL fACtors
58 58 Workplace Workplace 79 79 spply spply Chai Chai > Our Approach to Supply Chain Responsibility Responsibility KeY Issues & PrIorItIes
2010 2010 Assessment and Audit Summary Summary Conict-Free Minerals Supplier Diversity Diversity Supplier Environmental Impact Performance Summary & Goals 92 Contributions to Society Societ y APPendIx
11 1 11 About This Report/Approach to Assurance Assurance 112 1 12 GRI GRI Content Index Index 119 1 19 UN Global Compact— Communication on Progress Progress
Access the Report Builder
Our Approach to Supply Chain Responsibility Our strategy is to balance our goal of lowering our supplier-related environmental and social footprint with our need to ensure the most stable, cost effective, and predictable supply chain for Intel. From respecting human rights and promoting worker safety to reducing environmental impact, we look for leadership and collaboration opportunities to bring about lasting change. As a major supplier to other leading electronics companies, we know that Intel’s actions and those of our suppliers can impact the performance
o Glbal spply Chai Intel depends on a complex, multi-tiered global supply chain that comprises more than 10,000 suppliers in over 100 countries. Our suppliers provide a myriad of parts, equipment, materials, and services for our factories and ofces worldwide. We have suppliers that provide direct materials for our production processes, tools and machines for our factories, and logistics and packaging services; we also have suppliers that provide non-production materials and services, such as ofce supplies and travel services. In 2010, we were again recognized in Gartner’s AMR Supply Chain Top 25 25 list for excellence in supply chain management, including our efforts to improve customer responsiveness and apply supply chain principles across the company to reduce costs and improve efciency.
and reputation of our customers and their products. We continuously seek to establish a leadership position by proliferating and promoting the experience we have gained in managing corporate responsibility issues in our own manufacturing operations throughout our supply chain. We proactively scan trends to understand where there are signicant risks and opportunities for supply chain leadership. Where appropriate, we also enlist the help of others to effect broader change throughout the industry. Our approach includes:
upp p e r p en en s y eg eg o n up
• Setting clear expectations and expectations and providing infrastructure, direction, and
Americas
tools to help suppliers improve their corporate responsibility performance. As part of this process, we incorporate requirements and training into our management systems, scorecards, assessments, and awards; • Collaborating with our suppliers on broad initiatives where initiatives where we believe we can have a lasting impact, such as working with the Electronic Industry Citizenship Coalition (EICC) and other industry associations, ons, and helping to lead efforts to trace and eliminate conict minerals in the electronics cs supply chain; • Engaging our employees to employees to further integrate corporate responsibility considerations into purchasing decisions and supplier management
16%
44%
40%
APAC = Asia-Pacific
APAC
EMEA
EMEA = Europe, Middle East, A Africa frica
“ Supply chain leadership requires setting high expectations for ourselves and our suppliers, and then holding ourselves accountable to the results. By working closely and transparently across the full supply chain, we can achieve lasting and higher levels of performance.”
Jackie Sturm, Vice President, President,
2010 2010 Corporate Responsibility Report www.intel.com/go/responsibility
processes; and • Driving higher levels of transparency in transparency in our reporting and supplier engagement activities.
80 Back
Next
Technology and Manufacturing Group, General Manager, Worldwide Materials
Previous View
s o C I A L
f A C t o r s
3 Letter From Our CEO overvIew
5 Corporate Prole 9 Strategy and Management Approach
To continue to promote transparency, we have included a list of our top 75 suppliers in 2010.
GovernAnCe And
tp 75 Pci, Capial, a Lgiic sppli1
eConomIC fACtors
Advanced Semiconductor Engineering Inc. Advantest Corp. AEM Holdings Ltd. Air Products and Chemicals, Inc. Applied Materials Inc. ASM International N.V N.V.. ASML Holding N.V. Avantor Performance Materials, Inc. f/k/a Mallinckrodt Baker Inc. Cymer, Inc. Daifuku Co., Ltd. Dainippon Screen Mfg Co. Ltd.
Linde LSI Corporation Marvell Semiconductor, Inc. MEMC, Inc. Micron Microprobe Inc. Mitsubishi Gas Chemical Company, Inc. Murata Manufacturing Co. Ltd. Muratec Automation Co. LTD Nan Ya PCB Corp. Nanometrics Inc. Nidec Corporation
Delta Inc. Inc. Delta Design Electronics, DHL Global Forwarding Dupont Air Products Nanomaterials LLC Ebara Corp. Edwards Ltd. Essai Inc. Federal Express Flextronics Fujilm Electronic Materials USA, Inc. Fujimi Corporation Gemtek Technology Co., Ltd.
Nikon Corp. Nordson Asymtek Novellus Systems, Inc. Nuare Technology Inc. Pegatron Corporation Praxair Electronics Quanta Ringchem Company, Inc. Samsung Electro-Mechanics Schenker Logistics, Inc. SEH America Ltd. Shinko Electric Industries Co., Ltd. Siliconware Precision Industries Co., Ltd. Siltronic AG Stats Chip Pac Ltd. Sumco Corp. Tokyo Electron Ltd. Tokyo Ohka Kogyo America, Inc. Tosoh Quartz Inc. TSMC Ultratech, Inc. United Van Lines Universal Scientic Industrial Co., Ltd. UTI IMS Inc. Varian Semiconductor Equipment Associates, Inc. VWR International
20 Financial Performance and Economic Impact Impac t 25 Governance, Ethics, and Public Policy Polic y
envIronmentAL fACtors
32 32 Environment Environment soCIAL fACtors
58 58 Workplace Workplace 79 79 spply spply Chai Chai > Our Approach to Supply Chain Responsibility Responsibility KeY Issues & PrIorItIes
2010 2010 Assessment and Audit Summary Summary Conict-Free Minerals Supplier Diversity Diversity Supplier Environmental Impact Performance Summary & Goals 92 Contributions to Society Societ y
119 1 19 UN Global Compact— Communication on Progress Progress
Grohmann Engineering GMBH Harbor Electronics Inc. Hitachi High Technologies America Hitachi-Kokusai Electric Corp Hon Hai Precision Industry Co., Ltd. Honeywell Electronic Materials Hoya Corp. USA Ibiden Co. Ltd. Inventec Corp. JSR Micro, Inc. JX Nippon Mining & Metals Corp. Kintetsu World Express KLA Tencor Corporation
Access the Report Builder
KMG Chemicals, Inc.
APPendIx
11 1 11 About This Report/Approach to Assurance Assurance 112 1 12 GRI GRI Content Index Index
o epcai We expect our suppliers to actively support Intel’s supplier responsibility goals by: developing a corporate responsibility strategy or policy, setting aggressive goals, engaging and auditing their own suppliers, and reporting and sharing their ideas and successes. Some of our suppliers may in turn have thousands of suppliers themselves, so it is critical that we set clear expectations with our own suppliers. Intel rst codied supplier expectations regarding human resources, environmental management, worker safety, and ethics in 1998. In 2004, we adopted the Electronic Industry Code of Conduct (EICC Conduct (EICC Code), which is consistent with Intel’s own Code of Conduct and Human Rights Principles. Our EICC Commitment Letter, Code of Conduct, Human Rights Principles, Statement on Conict Minerals, and other corporate governance and business ethics documents are available on our Governance and Ethics web Ethics web site. We expect our employees and suppliers to comply with the EICC Code, which describes best practices adopted and implemented by major electronics companies, our customers, and their supply chains. We also expect our suppliers to ensure that their suppliers abide by the EICC Code. The EICC Code sets forth performance, compliance, management system, and reporting guidelines, as well as assessment and audit procedures, across key areas of social responsibility and environmental stewardship. It covers human rights issues and labor standards related to: child and forced labor, freedom of association and collective bargaining, diversity and nondiscrimination, working hours and minimum wages, ethical practices, and worker health and safety. The EICC Code also embodies principles from external standards, such as pertinent International Labour Organization conventions, the United Nations Global Compact, the Organisation for Economic Co-operation and Development (OECD) Guidelines for Multinational Enterprises, and the Universal Declaration of Human Rights.
2010 2010 Corporate Responsibility Report www.intel.com/go/responsibility 81 Back
Next
Previous View
As of December 31, 2010
1
th ppli i hi li p appialy 90% Il’ pchaig p i pci, capial, a lgiic i 2010. s cipi Il’ 2010 sppli Ci Qaliy Ip a P Qaliy sppli aa.
s o C I A L
f A C t o r s
3 Letter From Our CEO overvIew
5 Corporate Prole
Gac a maag
9 Strategy and Management Approach
An internal Intel organization is dedicated to managing our supply chain, and we have chartered specic leadership teams to focus on integrating corporate responsibility into our management practices, including
GovernAnCe And eConomIC fACtors
20 Financial Performance and Economic Impact Impac t 25 Governance, Ethics, and Public Policy Polic y
envIronmentAL fACtors
32 32 Environment Environment soCIAL fACtors
58 58 Workplace Workplace 79 79 spply spply Chai Chai > Our Approach to Supply Chain Responsibility Responsibility KeY Issues & PrIorItIes
2010 2010 Assessment and Audit Summary Summary Conict-Free Minerals Supplier Diversity Diversity Supplier Environmental Impact Performance Summary & Goals 92 Contributions to Society Societ y APPendIx
11 1 11 About This Report/Approach to Assurance Assurance 112 1 12 GRI GRI Content Index Index 119 1 19 UN Global Compact— Communication on Progress Progress
responding to requests from our customers on corporate responsibility topics. The primary leadership team chartered with setting the direction and strategy for supply chain corporate responsibility issues is our Supply Chain Management Review Committee (MRC). This team is made up of representatives from relevant business units across Intel, such as Materials; Technology Manufacturing Engineering; Customer Fulllment, Planning and Logistics; Corporate Responsibility; Environmental Health and Safety; Human Resources; and Legal. The MRC is supported by project work groups focused on EICC Code implementation, environmental sustainability, supply chain ethics, and global supplier diversity. The MRC also provides regular briengs to Intel’s senior vice president and general manager of Manufacturing and Supply Chain, and to other MRCs as needed. Iy Cllaba Cllabai. i. We We actively participate in a number of external supply chain-related organizations, including the EICC. Intel representatives serve on EICC committees to advance improvements throughout the industry, including helping to develop audit processes and tools to track assessment data and emissions information. Our EICC representatives provide regular updates to Intel’s internal working groups and MRCs to ensure
Risk-Based Approach to Supplier Assessments Risk Assessment 1 (RA1) High-level (one-page) analysis used to determine whether a specific supplier facility is a potential high-risk facility. The assessment covers a number of risk factors, plus geographic location, product(s) or service(s) provided, and corporate responsibility concerns. High-risk suppliers move to RA2
Risk Assessment 2 (RA2) Requires a supplier to respond to an in-depth, online self-assessment questionnaire questionnaire with more than 300 questions to determine a facility’s potential high-risk areas. RA2 goes into greater detail than RA1 and covers all sections of the EICC Code. High-risk suppliers move to RA3
Risk Assessment 3 (RA3)
that Intel’s supply chain responsibility priorities align with those of the EICC. In recent years, we have also actively engaged through industry associations, including SEMATECH and SEMATECH and Semiconductor Equipment and Materials International (SEMI), (SEMI), to help set environmental, health, and safety standards and drive improvements across the sector. sppli slci a rik-Ba maag. Commodity maag. Commodity managers and buyers are responsible for overseeing Intel’s supplier selection process and communicating our corporate responsibility expectations to suppliers. Our request-for-proposal documents and other supplier selection
Access the Report Builder
We use an industry-standard, risk-based approach to prioritize our supplier social responsibility activities. Our commodity managers are responsible for working with our suppliers to assess potential risks, using the following three-tiered framework:
processes include corporate responsibility metrics and questions. We also
Consists of an on-site third-party audit conducted for customers. The audit covers covers all sections of the EICC Code and evaluates risk according to the number of compliance concerns and/or critical areas at that location. Audit completed and corrective action plan put in place
thi ak all iiy aa pial cc a hlp piiiz h cpl hi-pay ai aag cpliac ih aa.
2010 2010 Corporate Responsibility Report www.intel.com/go/responsibility
include language in our contracts about our expectations for suppliers on corporate responsibility issues.
82 Back
Next
Previous View
s o C I A L
f A C t o r s
3 Letter From Our CEO overvIew
5 Corporate Prole 9 Strategy and Management Approach GovernAnCe And eConomIC fACtors
20 Financial Performance and Economic Impact Impac t 25 Governance, Ethics, and Public Policy Polic y
envIronmentAL fACtors
32 32 Environment Environment soCIAL fACtors
58 58 Workplace Workplace 79 79 spply spply Chai Chai > Our Approach to Supply Chain Responsibility Responsibility KeY Issues & PrIorItIes
2010 2010 Assessment and Audit Summary Summary Conict-Free Minerals Supplier Diversity Diversity Supplier Environmental Impact Performance Summary & Goals 92 Contributions to Society Societ y APPendIx
11 1 11 About This Report/Approach to Assurance Assurance 112 1 12 GRI GRI Content Index Index 119 1 19 UN Global Compact— Communication on Progress Progress
Access the Report Builder
eply taiig. For taiig. For a number of years, Intel commodity managers and buyers who manage our Tier 1 (direct) suppliers have been required to attend an internal training course that covers corporate responsibility and environmental sustainability. In 2010, we further integrated environmental
sppli Ci Qaliy Ip Pga
and social responsibility considerations into our management systems and training, including:
Our suppliers receive regular feedback through the supplier assessment process and supplier site visits.
• Adding more in-depth discussions to commodity manager training about human rights, conict minerals, and environmental sustainability requirements;
On an annual basis, we publicly recognize suppliers that have demonstrated outstanding performance. Suppliers are awarded either SCQI or Preferred Quality Supplier (PQS) status based on Supplier Report Card (SRC) results; performance against a challenging annual improvement plan; active participation in Intel’s supply chain environmental, social, and governance initiatives; and validated quality and business systems. In addition to the SCQI and PQS awards, we created a new Achievement Award in 2010
• Updating two of our supply chain negotiation courses to include sustainability topics; • Integrating corporate responsibility content into training and web sites for employees who use our corporate purchasing cards, high-volume shopping cards, and Correct Way to Buy tool; • Creating new purchasing desk scripts that cover corporate responsibility issues, and training our helpdesk staff to better respond to questions from employees; • Adding environmental and social considerations consid erations into the strategic sourc sourc-ing plans of a number of groups in our supply chain organizations; and • Creating and implementing sustainability curricula in our int internal ernal employee training program on supply chain management competencies. tapacy. In 2010, we took a number of steps to increase the overall tapacy. In transparency transparen cy of our supply chain responsibility responsibility efforts, including: expanding disclosure of our top suppliers from 50 to 75, providing regular updates during the year on our actions to address conict minerals, expanding our disclosure on our assessment and audit ndings, and redesigning our supplier web site. We also launched a pilot web site with real-time reporting for one of our factories. For more information, see “Stakeholder “ Stakeholder Engagement Engagement”” in this report.
Started in 1987, Intel’s corporate-wide Supplier Continuous Quality Improvement (SCQI) Program utilizes Intel’s supplier management tools and processes to drive continuous improvements in our suppliers’ performance.
to recognize an extraordinary supplier effort that impacted one of Intel’s key business areas. For a list of recent SCQI and PQS winners, visit our Supplier Quality Portal. Portal. In 2010, we continued to improve our internal processes for integrating environmental considerations into the SRC and into the processes that we use to request bids and proposals, select new suppliers, and manage supplier performance. The SRC now includes sustainability metrics, as well as metrics in the areas of availability, cost, quality, technology, and customer satisfaction. Within the sustainability category, suppliers are assessed on an Intel Code of Conduct risk assessment, the presence of an environmental management program with set goals and performance improvements over time, and nancial sustainability measures. Starting in 2011, suppliers subject to the SRC will also be required to provide baseline usage and historical trend data on carbon, water, and waste, including any applicable goals that the supplier has established. The objective is not to set specic improvement expectations for suppliers at this stage, but to determine how to drive improvements in the future.
2010 2010 Corporate Responsibility Report www.intel.com/go/responsibility 83 Back
Next
Previous View
s o C I A L
f A C t o r s
3 Letter From Our CEO overvIew
5 Corporate Prole
sppli tl a ecai
9 Strategy and Management Approach
To ensure that our suppliers are well-informed and compliant with our expectations, we offer training and a number of tools.
GovernAnCe And eConomIC fACtors
20 Financial Performance and Economic Impact Impac t 25 Governance, Ethics, and Public Policy Polic y
envIronmentAL fACtors
32 32 Environment Environment soCIAL fACtors
58 58 Workplace Workplace 79 79 spply spply Chai Chai Our Approach to Supply Chain Responsibility Responsibility KeY Issues & PrIorItIes
> 201 2010 0 Assessment and Audit Summary Summary Conict-Free Minerals Supplier Diversity Diversity Supplier Environmental Impact Performance Summary & Goals
sppli wb si. Our si. Our Supplier Site contains Site contains detailed information about our human rights, ethics, and environmental health and safety policies for suppliers, supplier diversity initiatives, supplier quality and recognition programs, business continuity, and key contacts. The secure area of the site features numerous web-based tools designed to promote effective communications and help suppliers follow proper data collection procedures. The Environmental Health and Safety section Safety section of the site includes Intel’s safety expectations, online safety training tools and manuals, and information about recent supplier safety awards. It also includes our Environmental Product Content Specication, and provides tools for tasks such as screening products for restricted chemicals. Il sppli day. At day. At our Intel Supplier Day conference in March 2010, hundreds of executives came together to receive education, share information, discuss our supplier expectations, and learn about our corporate responsibility objectives for the coming year. Sustainability was one of the main themes at the event. Keynotes, panels, and many of the interactive booths at the conference focused on corporate responsibility and sustainability topics.
92 Contributions to Society Societ y APPendIx
11 1 11 About This Report/Approach to Assurance Assurance 112 1 12 GRI GRI Content Index Index 119 1 19 UN Global Compact— Communication on Progress Progress
Access the Report Builder
ehic taiig. We taiig. We communicate our supplier ethics expectations throughout the year in supplier meetings and training events, as well as on our Supplier Site. An annual reminder letter to suppliers reinforces those ethics expectations. We provide ethics training materials in multiple languages, including English, Chinese, Japanese, Spanish, Russian, and Vietnamese. Suppliers are expected to report any ethical concerns to Intel so we can investigate and take appropriate action. Reporting can be done using any of several reporting methods methods,, in English or in their local language. For more information on Intel’s supplier ethics expectations, training materials, or issue reporting, visit the Ethics and Code of Conduct section Conduct section of our Supplier Site.
2010 Summar y 2010 Assessment and Audit Summary We believe that the most effective way to improve corporate responsibility performance across our supply chain is to direct our audit and performance improvement activities primarily toward suppliers with the highest risk proles. Our assessments and audits cover a range of labor-related issues as well as environmental, health, and safety factors. In 2010, we improved supplier due diligence by signicantly increasing the total number of assessments and audits that we completed using our risk-based assessment process. process. rik A a Ai 2010
2009
2008
RA1 (high-level self-assessment) self-assessment)
576
500
300
RA2 (in-depth assessment with over 300 questions)
172
74
49
8
0
9
RA3 (on-site third-party audit)
sic 2008, ha cpl ha 1,000 ppli l-a ai. 89% pci ppli i p 75 li ha b ala ig ik-ba a pc. I 2011, ill ci pa a pc ac ppli ba, iclig lgiic ppli.
“ Each company can have an impact with an individual supplier, but if you drive change through thousands of suppliers, that can lead to a geometric impact.” Robert E. Bruck, Vice President, Technology and Manufacturing Group, General Manager,
Technology Manufacturing Engineering
2010 2010 Corporate Responsibility Report www.intel.com/go/responsibility 84 Back
Next
Previous View
s o C I A L
f A C t o r s
3 Letter From Our CEO overvIew
5 Corporate Prole 9 Strategy and Management Approach GovernAnCe And eConomIC fACtors
20 Financial Performance and Economic Impact Impac t 25 Governance, Ethics, and Public Policy Polic y
envIronmentAL fACtors
32 32 Environment Environment soCIAL fACtors
58 58 Workplace Workplace 79 79 spply spply Chai Chai Our Approach to Supply Chain Responsibility Responsibility KeY Issues & PrIorItIes
> 201 2010 0 Assessment and Audit Summary Summary Conict-Free Minerals Supplier Diversity Diversity Supplier Environmental Impact Performance Summary & Goals 92 Contributions to Society Societ y APPendIx
11 1 11 About This Report/Approach to Assurance Assurance 112 1 12 GRI GRI Content Index Index 119 1 19 UN Global Compact— Communication on Progress Progress
Access the Report Builder
We restarted our audit activity in 2010, completing eight RA3 third-party audits in 2010, compared to zero in 2009, when audits were put on hold while the audit process was rened. Primary areas of concern identied through the assessments and audits in 2010 included working hours, issues related to wages and benets, emergency preparedness concerns, and insufcient labor and ethics management systems. Examples of ndings included evidence of employees working longer than 60 hours in a week or not being provided at least one day off in seven, and insufcient training or procedures related to re safety and drills. Affected suppliers were required to draft corrective action plans to address these issues, and we continue to work with the suppliers to secure documentation of actions taken and ensure closure. In 2010, several workers at one of these supplier sites, Foxconn (also known as Hon Hai), committed suicide at their workplace in Shenzhen, China. Like many other companies in our industry that work with this supplier, Intel was deeply concerned about this tragic situation. Executives from our supply chain organization have been in continuing discussions with Foxconn’s senior management, and we have offered them our assistance in the form of human resources staff expertise and other general support. In addition, we joined the EICC’s employee health and welfare taskforce to conduct a root cause analysis, and Intel required that a validated audit be performed on-site to identify any major and minor nonconformances to EICC Code. Foxconn has taken a number of actions to address the underlying issues; we are encouraged by their effectiveness to date. In 2011, we will further monitor the issues identied in the audit to ensure that progress continues to be made. When serious concerns are identied through audits, our approach is to engage with the supplier to drive improvements in their management systems and controls. However, if suppliers do not make adequate progress on identied areas of concern, we will take disciplinary actions up to and including termination of their contracts. We plan to complete a total of at least 50 third-party supplier audits in
increase our overall audit activity level. The suppliers in the audits will be able to share the results with their customers, as we will be following the EICC standard audit process. upp p er ac ty up
s
eve s as eve ase e on
sses ss essm smen ents ts
4% 21%
75% Low risk
Medium risk
High risk
w cpl 172 rA2 a ppli acilii i 2010. Aa ii a pially high ik icl lab i, ch a y p chil lab a ci kig h, a ial aag y.
strr uton y st ectt on o ec 2010 Supplier Audits
a or on onco con n or orma manc nces es n
7% 3% 8%
26%
11% 11%
25%
20% Health & Safety
Ethics
Environment
Labor
EHS Management System
General
Labor & Ethics Management System
th c cac ig i 2010 i h aa halh a ay (iclig gcy ppa) a lab a kig h.
We hold ourselves accountable to meet or exceed the same standards that we set for our suppliers. In early 2011, we completed RA2 assessments at
2010 2010 Corporate Responsibility Report www.intel.com/go/responsibility
2011. We remain committed to the EICC shared-audit process, and in 2011 we will supplement that system with additional third-party audits to
85 Back
Next
we set for our suppliers. In early 2011, we completed RA2 assessments at our assembly and test facilities and fabs. We intend to make the summary results public on our Supplier Site Site and and in our next Corporate Responsibility report.
Previous View
s o C I A L
f A C t o r s
3 Letter From Our CEO overvIew
5 Corporate Prole 9 Strategy and Management Approach GovernAnCe And eConomIC fACtors
20 Financial Performance and Economic Impact Impac t 25 Governance, Ethics, and Public Policy Polic y
envIronmentAL fACtors
32 32 Environment Environment soCIAL fACtors
58 58 Workplace Workplace 79 79 spply spply Chai Chai Our Approach to Supply Chain Responsibility Responsibility KeY Issues & PrIorItIes
2010 2010 Assessment and Audit Summary Summary > Conict-Free Minerals Supplier Diversity Diversity Supplier Environmental Impact Performance Summary & Goals 92 Contributions to Society Societ y APPendIx
11 1 11 About This Report/Approach to Assurance Assurance 112 1 12 GRI GRI Content Index Index 119 1 19 UN Global Compact— Communication on Progress Progress
Access the Report Builder
Conict-Free Minerals In 2010, Intel took a number of actions to proactively address concerns that metals (cobalt, gold, tantalum, tin, and tungsten) mined in the Democratic Republic of the Congo (DRC) might be used in the electronics supply chain, and that prots from the sale of these minerals may be fueling human rights atrocities in the eastern region of the DRC. The electronics industry supply chain is deep and wide, with many layers of suppliers in multiple countries. As a result, it is difcult to verify the origin of all the metals used in our products. Resolution of this issue will require the commitment and cooperation of businesses, governments, development agencies, and non-governmental organizations (NGOs). Throughout 2010, we continued to work diligently to put systems and processes in place that will eventually enable us, with a high degree of condence, to declare that our products are conict-free. Our efforts are focused in three main areas: 1) driving accountability and ownership within our own supply chain through smelter validation audits; 2) partnering with key industry associations, including the EICC EICC,, Business for Social Responsibility,, and ITRI Responsibility ITRI (the (the international tin industry association) to drive industry-wide action; and 3) working with both government agencies and NGOs to drive solutions. Our actions in 2010 included: • Smelter Reviews and Audits. We Audits. We completed on-site reviews of 25 smelters in eight countries: Bolivia, Canada, China, Indonesia, Malaysia, Peru, Thailand, and the U.S. Through these reviews, Intel is determining if smelters can verify the mines of origin for the ores they process. While other companies have since joined us in these visits, Intel was the rst company in the electronics supply chain to conduct on-site smelter reviews. The smelter reviews laid the groundwork for the EICC to develop
• Visits to the DRC. In DRC. In late 2010, we sent our lead staffer working on the conict minerals issue to the DRC to meet with local groups and work to understand the challenges related to traceability. • Supplier Communications. We Communications. We continued to reinforce our expectations with our suppliers, following up on a survey on conict minerals that we sent to all suppliers in 2009. • Engagements with NGOs. We NGOs. We continued to meet with NGOs and individuals engaged on this issue. • Industry Collaborations and Working Groups. Intel Groups. Intel continued to cochair the EICC/Global eSustainability Initiative (GeSI) Working Group on extractives, helping to develop a tantalum audit protocol. We also hosted and co-chaired the rst industry-wide meeting with the tin supply chain, and nancially supported the tin industry’s efforts to create a traceability system of metals coming from the region. Intel arranged a ConictFree Gold Sourcing Summit in March 2011 with members of the World Gold Council and the Responsible Jewelry Council to share our learnings from the EICC smelter audit program with leaders in the gold industry. • Policy Work. Where Work. Where appropriate, we shared our unique experience and knowledge to inform government efforts, both directly and through industry collaborations. The U.S. Congress included provisions to address conict minerals in the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. We see this as a contribution to an international solution of multilateral due diligence guidelines and industry efforts to develop a system to validate conict-free sourcing. We have invested signicant resources—including staff time and nancial support of studies and working groups—to address this issue, and we will continue to do so in 2011 (including the completion of at least 10 more on-site smelter reviews). Since conict minerals are an evolving issue, we are committed to providing regular progress updates and white papers on papers on our web site, and continuing to educate our suppliers on this topic (as in this video, shown at Intel
2010 2010 Corporate Responsibility Report www.intel.com/go/responsibility
and implement a process for independent third-party smelter audits. At the end of 2010, the EICC completed two independent, third-party smelter audits, and additional audits are being scheduled for 2011.
Supplier Day).
86 Back
Next
Previous View
s o C I A L
f A C t o r s
3 Letter From Our CEO overvIew
5 Corporate Prole 9 Strategy and Management Approach
Supplier Diversity
GovernAnCe And
As part of our commitment to deliver world-class products and services, Intel has maintained a Corporate Supplier
eConomIC fACtors
Diversity Program for more than a decade.
20 Financial Performance and Economic Impact Impac t 25 Governance, Ethics, and Public Policy Polic y
envIronmentAL fACtors
32 32 Environment Environment soCIAL fACtors
58 58 Workplace Workplace 79 79 spply spply Chai Chai Our Approach to Supply Chain Responsibility Responsibility KeY Issues & PrIorItIes
2010 2010 Assessment and Audit Summary Summary Conict-Free Minerals > Supplier Diversity Diversity Supplier Environmental Impact Performance Summary & Goals 92 Contributions to Society Societ y APPendIx
11 1 11 About This Report/Approach to Assurance Assurance 112 1 12 GRI GRI Content Index Index 119 1 19 UN Global Compact— Communication on Progress Progress
We understand the importance of working with a diverse supply chain that represents our local markets and contributes innovative ideas to our business, helping us to better understand and serve the needs of varying markets and customers. We estimate that in the past three years, Intel derived more than $40 billion in revenue from customers that require us to demonstrate supply chain diversity. We recognize diverse suppliers as businesses that are 51% owned and operated by at least one of the following: minorities as dened by the country where the business was established; women; veterans; service-disabled veterans; persons who are lesbian, gay, bisexual, or transgender; or persons with a disability. Within the U.S., we also recognize suppliers that are in Small Disadvantaged Enterprise, HUB Zone, and 8A categories, as dened by the U.S. Small Business Administration. Intel collaborates with a number of diversity organizations to help promote supplier diversity awareness, set global diversity certication standards, and establish cross-industry diversity auditing policies and practices. Those organizations include the National Minority Supplier Development Council (NMSDC), the National Gay and Lesbian Chamber of Commerce (NGLCC), WEConnect International (WCI), and Minority Supplier Development China (MSD China). We also participate in events sponsored by local organizations dedicated to supplier diversity.
Intel is a member of the Information Systems Technology Group, a consortium that denes guidelines, innovative supplier development solutions, and best-known methods to proliferate global supplier diversity for the high-tech industry and its supply chain. Through classroom and web-based training, we educate our worldwide procurement employees about global supplier diversity practices, policies, and inclusion. Intel’s Second Tier Program supports our efforts to advance the development of a healthy supplier diversity initiative by requiring our strategic suppliers to report their spending with diverse suppliers. Our strategic suppliers that use diverse suppliers reported spending more than $149 million in 2010. We achieved our 2010 goals of: including historically under-represented businesses in 100% of all eligible non-capital bidding opportunities, and participating in interna international tional supplier diversity standards adoption and community awareness campaigns. In 2011, we will continue to include under-represented businesses in all eligible non-capital bidding opportunities, and we will collaborate further on the establishment of cross-industry global supplier diversity policies and practices. We will also work to build greater awareness of the value of supplier diversity throughout the global supply chain. For more information on our supplier diversity initiatives, visit our Supplier Diversity web Diversity web site.
“ Running any business has its challenges. But small, diverse businesses face even greater hurdles. Intel’s Diversity Supplier program has helped our business prepare for opportunity, open doors, and cultivate new relationships.” Noma Hanlon, President, HB Design
Access the Report Builder
2010 2010 Corporate Responsibility Report www.intel.com/go/responsibility 87 Back
Next
Previous View
s o C I A L
f A C t o r s
3 Letter From Our CEO overvIew
5 Corporate Prole 9 Strategy and Management Approach GovernAnCe And eConomIC fACtors
20 Financial Performance and Economic Impact Impac t 25 Governance, Ethics, and Public Policy Polic y
envIronmentAL fACtors
32 32 Environment Environment soCIAL fACtors
58 58 Workplace Workplace 79 79 spply spply Chai Chai Our Approach to Supply Chain Responsibility Responsibility KeY Issues & PrIorItIes
2010 2010 Assessment and Audit Summary Summary Conict-Free Minerals Supplier Diversity Diversity > Supplier Environmental Impact Performance Summary & Goals 92 Contributions to Society Societ y APPendIx
11 1 11 About This Report/Approach to Assurance Assurance 112 1 12 GRI GRI Content Index Index 119 1 19 UN Global Compact— Communication on Progress Progress
Access the Report Builder
Supplier Environmental Impact We aim to use products in our operations that have been designed and produced to minimize environmental impact. To that end, we collaborate with our suppliers on environmental management issues and integrate sustainable purchasing best practices across our global operations. Cab a wa fpiig. Many fpiig. Many companies in the electronics industry outsource much of their manufacturing, so the environmental impact and carbon emissions of their supply chain can be signicantly larger than those from their own operations. That is not the case with Intel, since we continue to conduct the majority of our wafer manufacturing in our own global factory network. As a result, we place a higher priority on investments that reduce the environmental impact of our own operations, but we also remain committed to nding new opportunities to improve sustainability across our supply chain. In 2009, we completed a research paper entitled “Developing “ Developing an Overall CO2 Footprint for Semiconductor Products,” Products,”1 published by IEEE IEEE,, to gain a high-level understanding of the environmental impacts from our industry not directly attributable to direct manufacturing operations. We primarily focused on activities that directly support manufacturing operations;
We also conducted an assessment for an IEEE research paper entitled “Performing a Water Footprint Assessment for a Semiconductor Industry,” 2 using similar methodologies to estimate water use in our supply chain. We found that our Tier 1 suppliers accounted for only 6% of total water use, while 66% stemmed from our direct manufacturing operations. About 24% of the water use was related to the production of energy. In 2011, we collaborated with an outside research rm to build on this preliminary estimate and further rene our methodology. This second paper found that the supply chain portion of our footprint accounted for less than 1% of our total footprint when water associated with the consumer-use phase of our products was incorporated. Over the past few years, we have participated in EICC Sustainability Work Group activities geared toward decreasing the carbon footprint across the electronics industry supply chain, including piloting a new EICC carbon reporting system. In 2010, we collected emissions data from our top 50 suppliers. By the end of the year, more than half of these 50 suppliers had provided carbon data, and we had also received unsolicited carbon data from 22 other suppliers. We have begun an initial analysis of this data, and in 2011 will use it to inform our supplier engagement strategy and footprinting methodologies. As noted previously, suppliers subject to the SRC SRC are now required to provide baseline usage and historical trend data on carbon, water, and waste, including any goals that the supplier has estab-
we did not not assess include the potential impacts other support we did embedded CO 2from impact from capitaloperations, goods suchand as buildings and manufacturing equipment. We collected information on more than 90% (by mass) of the raw materials used in the semiconductor manufacturing process and worked with a third-party consultant to create an estimate of the total CO2 equivalent impact.
lished. We expect that this data will enable us to establish a much broader picture of our supply chain’s environmental footprint. For more information on our activities to reduce our carbon and water footprints, see the Environment section Environment section of this report.
The study revealed that supply chain impact represented only about 2.2% of total emissions. When emissions associated with consumer use of our products were excluded, direct operations accounted for nearly 60% of
driven environmental sustainability improvements, we have also realized positive bottom-line impact, so it is good for the environment and good for our business.”
emissions, the supply chain represented 23%. The calculation of an overall CO and footprint still contains many limitations and uncertainties, and
“ From a logistics perspective, where we have
2
we are continuing to evolve our thinking in this area.
2010 2010 Corporate Responsibility Report www.intel.com/go/responsibility 88 Back
Next
Previous View
© ©
2010 IEEE. Reprinted with permission from “Developing an Overall CO 2 Footprint for Semiconductor Products.” 2 2010 IEEE. Reprinted with permission from “Performing a Water Footprint Assessment for a Semiconductor Industry.” 1
Frank Jones, Vice President, Technology and Manufacturing Group, General Manager, Customer Fulllment, Planning, and Logistics
s o C I A L
f A C t o r s
3 Letter From Our CEO overvIew
5 Corporate Prole 9 Strategy and Management Approach GovernAnCe And eConomIC fACtors
20 Financial Performance and Economic Impact Impac t 25 Governance, Ethics, and Public Policy Polic y
envIronmentAL fACtors
32 32 Environment Environment soCIAL fACtors
58 58 Workplace Workplace 79 79 spply spply Chai Chai Our Approach to Supply Chain Responsibility Responsibility KeY Issues & PrIorItIes
2010 2010 Assessment and Audit Summary Summary Conict-Free Minerals Supplier Diversity Diversity > Supplier Environmental Impact Performance Summary & Goals 92 Contributions to Society Societ y APPendIx
11 1 11 About This Report/Approach to Assurance Assurance 112 1 12 GRI GRI Content Index Index 119 1 19 UN Global Compact— Communication on Progress Progress
Access the Report Builder
Pc Packagig a Lgiic. Our Lgiic. Our product packaging and logistics teams are working to reduce waste generation and emissions through better design of the trays and packaging materials used to ship products between Intel sites and to customers. In 2010, we reduced by 217 tons the
We also redesigned the box that we use to ship small quantities of sample chips to customers, validation labs, and integrated warehouses. We expect that the new box will reduce package weight by about 16 tons over three years, once we begin using it in late 2011.
amount of paper and plastic used to ship a wide variety of Intel products through design changes and reduction of packaging size.
A team of Intel employees received a 2010 Intel Environmental Excellence Award for collaborating with assembly subcontractors and a tray supplier Award for on a tray reuse project. In addition to boosting process efciency and cutting costs, the project resulted in signicant benets, including:
saig Lgiic Packagig rci Pjc i 2010 maial typ Tons Percentage of Total Reductions
Plaic
Cga Pap
w
tal
21
148
48
21 217 7
10%
68%
22%
100%
w c h ial gal by lgiic a c aial packagig by 180 i 2010.
Trays that hold our products account for a large part of the weight of our shipments to customers. When we can reduce tray weight, we not only cut costs, but also save materials resources and reduce transportation fuel consumption. In 2010, we initiated projects to convert some of our trays from heavier, injection-molded plastic to lighter, more exible, thermoformed plastic trays. The conversion generally reduces plastic volume per tray by approximately 50%. As a result, we project that over the next three years, we will be able to reduce the amount of plastic used for trays by 2,267 tons—while saving about $8 million. In 2010, we also began redesigning trays to enable denser shipments of our Intel® Atom™ processors. The newly designed trays, which we expect to start using in the second half of 2011, will weigh half as much as our existing trays and will take up 27% less space due to their nesting ability. We expect to save 265 tons of packaging material over three years, while cutting costs by $5 million as a result of using the new Intel Atom processor trays.
• The conservation of clo close se to 475 tons of raw mat materials erials due to a 4.4 million (approximately 50%) reduction in the number of trays manufactured in 2009. As the program continues and expands to additional suppliers, we project further reductions in raw materials usage. • The recycling of reject and broken trays. Instead of being sent to landlls, unusable trays are now ground up and made into new trays, reducing the need for raw materials by up to 18%. • Indirect benets resulting from the conservation of energy and resources throughout the tray supply chain—from the mining of raw materials through the energy required to transport trays to our assembly factory. • A 40% reduction in cost from the new tray purchase price, for an estimated savings of $1.9 million over three years. • Prevention of the inow of potential ““counterfeit” counterfeit” trays into the supply chain, which can be attributed to quality issues in our assembly and test facilities.
2010 2010 Corporate Responsibility Report www.intel.com/go/responsibility 89 Back
Next
Previous View
s o C I A L
f A C t o r s
3 Letter From Our CEO overvIew
5 Corporate Prole 9 Strategy and Management Approach GovernAnCe And eConomIC fACtors
20 Financial Performance and Economic Impact Impac t 25 Governance, Ethics, and Public Policy Polic y
envIronmentAL fACtors
32 32 Environment Environment soCIAL fACtors
58 58 Workplace Workplace 79 79 spply spply Chai Chai Our Approach to Supply Chain Responsibility Responsibility KeY Issues & PrIorItIes
2010 2010 Assessment and Audit Summary Summary Conict-Free Minerals Supplier Diversity Diversity > Supplier Environmental Impact Performance Summary & Goals 92 Contributions to Society Societ y
n-pci scig Pjc. Over Pjc. Over the past two years, our sourcing professionals have found numerous ways to improve the sustainability of non-production projects, including initiatives in event planning, employee travel, ofce supplies, and printing. For example, each year Intel sponsors or holds more than 1,000 events— from small department meetings to large-scale customer events. In 2009, we launched a concerted effort to improve the design and planning of these events to reduce their environmental impact. For the 2009 Intel Developer Forum (IDF), we selected hotels that would reduce the need for ground transportation, designed more efcient lighting, procured food through local sources, and used more recycled materials. These efforts resulted in recognition from IMEX IMEX through through its annual “green” meeting awards. We employed similar strategies and practices at four major Intel-
saiabl Pchaig Pjc—2010 Highligh Aa
Pjc rl
Paper Use
• We reduced paper use bbyy encouraging employees to opt-in to receiving electronic credit card, stock, retirement, and payroll documents instead of printed statements. • We encouraged employees to pprint rint fewer documents by requiring them to enter a personal code at our printers. This process change raised awareness about printing volumes and resulted in a 27% reduction in paper use, saving 9 million sheets of paper in 2010.
Travel and Ground Travel Transportation
survey tool to understand the impact of the green designations on booking decisions.
sponsored events in 2010. At just one of these events, IDF in Beijing, China, we estimate that our new sustainability initiatives enabled us to avoid the equivalent of 6,900 tons of CO2 emissions. Based on the success of these events, our Corporate Event Marketing and Corporate Strategic Procurement groups developed a Green Events Handbook that covers best practices to improve environmental aspects in event planning. The handbook will be piloted with 15 of our largest U.S. events, and has the potential to eventually impact the planning of some 1,200 Intel events each year.
• We worked with our car rental supplier ttoo increase hybrid vehicle options and the overall fuel efciency of our rental car eet, and promote “smart-way” car rentals in our online travel tool. We also set internal mileage-per-gallon and CO2 targets for both our rental vehicles and our leased eet.
Ofce Supplies
• We completed a pilot with our ofce supplies vendor to test a set of mo re sustainable options and integrated these new items into our purchasing catalogs. As a result, we estimate that we avoided the equivalent of 30 tons of CO2 emissions in 2010.
Marketing
• We encouraged Intel ggroups roups and their suppliers to print marketing collateral and other items closer in location proximity to their nal delivery location, thus reducing the carbon emissions resulting from document transport.
APPendIx
11 1 11 About This Report/Approach to Assurance Assurance 112 1 12 GRI GRI Content Index Index 119 1 19 UN Global Compact— Communication on Progress Progress
Access the Report Builder
In 2010, our employees found new opportunities to further embed sustainability considerations into their purchasing and planning decisions, from the design of Intel-sponsored events to the selection of “green” hotels and rental cars for business travel.
• We requested tha thatt our travel service supplier label green hotels in the database that em ployees use when booking travel, and instituted a
w ci lk ppii pa ih bi gp ac h cpay c h ial ipac hi pchaig cii.
2010 2010 Corporate Responsibility Report www.intel.com/go/responsibility 90 Back
Next
Previous View
s o C I A L
f A C t o r s
3 Letter From Our CEO overvIew
5 Corporate Prole 9 Strategy and Management Approach GovernAnCe And eConomIC fACtors
20 Financial Performance and Economic Impact Impac t
Performance Summary and Goals In 2010, we continued to implement new tools to further integrate corporate responsibility into our management practices. We improved our processes to assess and audit our supply chain and completed eight third-party audits of high-risk suppliers. We invested signicant resources to help develop an industry-wide system to address the issue of conict minerals in the electronics supply chain, including the completion of 25 on-site smelter reviews and two third-party audits, and sending a staff member to visit the Democratic Republic of the Congo. We worked to expand our supply chain environmental footprinting initiatives, and identied new opportunities to engage employees to further integrate sustainability into their purchasing practices.
25 Governance, Ethics, and Public Policy Polic y
spply Chai Gal a Pac
envIronmentAL fACtors
32 32 Environment Environment soCIAL fACtors
58 58 Workplace Workplace 79 79 spply spply Chai Chai Our Approach to Supply Chain Responsibility Responsibility KeY Issues & PrIorItIes
2010 2010 Assessment and Audit Summary Summary Conict-Free Minerals Supplier Diversity Diversity Supplier Environmental Impact > Performance Summary & Goals 92 Contributions to Society Societ y
2010 Gal
2010 Pac
Include historically under-represented businesses in 100% of all eligible non-capital bidding opportunities, and participate in international supplier diversity standards adoption and community awareness campaigns.
We achieved our 100% inclusion target and participated in a number of international supplier diversity forums.
Continue to integrate corporate responsibility factors into supplier awards, Supplier Report Card, contracts, purchasing specications, and training.
We made signicant progress in 2010 to further integrate these factors into our m anagement practices and internal training.
Achi
Paially Achi
n m
In 2011, we will continue to expand the number of third-party supplier audits and continue to integrate corporate responsibility metrics and considerations into our management systems, scorecards, and training processes. In the area of conict minerals, we will complete additional on-site smelter reviews and audits to improve traceability within the four key conict mineral supply chains. We will also complete projects to further reduce the environmental impact of our non-production sourcing activities, transportation, and packaging. We will drive to higher levels of transparency, posting assessment and audit ndings on our supplier web site and encouraging higher levels of transparency by our own suppliers.
APPendIx
11 1 11 About This Report/Approach to Assurance Assurance 112 1 12 GRI GRI Content Index Index 119 1 19 UN Global Compact— Communication on Progress Progress
spply Chai Gal 2011 Complete a minimum of 50 on-site, third-party supplier audits. Complete at least 10 on-site smelter reviews and initiate initiate third-party industry smelter audits ac ross four key conict minerals: gold, tantalum, tin , and tungsten. Require our top suppliers to provide baseline supplier environmental data on c arbon, water, and waste to inform goal setting for 2012 and beyond. Continue to increase corporate responsibility requirements in the Supplier Repor t Card and criteria for Supplier Continuous Quality Improvement and Preferred Quality Supplier winners, adding additional screens in the selection process. Reduce the weight of our packaging by 30% from 201 2010 0 levels.
Access the Report Builder
Increase “green” purchasing alternatives for employees in the areas of travel and ofce supplies.
2010 2010 Corporate Responsibility Report www.intel.com/go/responsibility
Include historically under-represented businesses in 100% of all eligible bidding opportunities.
91 Back
Next
Previous View
s o C I A L
f A C t o r s
3 Letter From Our CEO overvIew
5 Corporate Prole 9 Strategy and Management Approach GovernAnCe And eConomIC fACtors
20 Financial Performance and Economic Impact Impac t 25 Governance, Ethics, and Public Policy Polic y
envIronmentAL fACtors
32 32 Environment Environment soCIAL fACtors
58 58 Workplace Workplace 79 79 Supply Supply Chain Chain 92 Cibi sciy sci y Our Approach KeY Issues & PrIorItIes
Education Transform Transformation ation Community Engagement and Employee Volunteerism
Contributions to Society Technology plays a pivotal role in addressing many of the leading social challenges that we face today—around the world and in our own backyards. From advancing global education initiatives and promoting broad economic development to working hand in hand with neighbors in our local communities, Intel is committed to applying technology and the talents of its employees to improve lives and inspire the next generation of innovators.
1
2 3
m b iag.
Entrepreneurship and Social Innovation Empowering Girls and Women Performance Summary & Goals APPendIx
11 1 11 About This Report/Approach to Assurance Assurance 112 1 12 GRI GRI Content Index Index Ky sciy Ipac Lik
119 1 19 UN Global Compact— Communication on Progress Progress
Intel’s Education Strategy
9
>
Access the Report Builder
Million
Number of teachers
1
$ Billion Amount invested in
48
%
Percentage of Intel
Intel® Teach Program Intel World Ahead Program Intel® Learning Series Intel in Your Community
2010 2010 Corporate Responsibility Report www.intel.com/go/responsibility
trained through the Intel® Teach Program
education transformation over the last decade
employees who volunteered in 2010
Intel Foundation
92 Back
Next
Previous View
s o C I A L
f A C t o r s
3 Letter From Our CEO overvIew
5 Corporate Prole 9 Strategy and Management Approach GovernAnCe And eConomIC fACtors
20 Financial Performance and Economic Impact Impac t 25 Governance, Ethics, and Public Policy Polic y
envIronmentAL fACtors
32 32 Environment Environment soCIAL fACtors
58 58 Workplace Workplace 79 79 Supply Supply Chain Chain 92 Cibi sciy sci y > Our Approach
Our Approach Through collaboration, capacity-building initiatives, creative application of technology, and strategic giving, we strive to
a workforce that represents diversity around the world. Through local and national grants, the Foundation works to fuel classroom innovation and student interest in math and science, empower women and underserved youth, and enable university education and research. The Foundation sup-
transform education, increase economic opportunity, and make the communities where Intel operates better places to live and work.
ports Intel employees’ passion for service by allocating more than half of its annual investments to employee matching gift and volunteer programs. For more information, visit the Intel Foundation Foundation web web site.
Our long history of investment and engagement around social issues has generated signicant value both for Intel1 and for our stakeholders. We have created systems, dedicated staff resources, and worked with third parties to plan and track our social investments and evaluate the longterm impact of our efforts.
Caig sha val
maag Appach
expand an existing Intel campus or build in a new location, we are generally welcomed and supported. Constructive relationships that we have cultivated with community members also yield valuable feedback that helps us improve our performance. In addition, we believe that engaging our employees in meaningful volunteer experiences positively impacts their satisfaction and pride, and helps us attract and retain talented people.
Performance Summary & Goals
Our vice president of Corporate Affairs has overall responsibility for our global community engagement and education programs. Corporate Affairs professionals at our locations around the world give Intel an “on-theground” presence that helps us understand and respond to local community and education-related needs. These employees work closely with nonprot organizations, schools, regional leaders, and policy makers—as well as other Intel organizations—to identify issues and develop comprehensive initiatives that will have the greatest impact while aligning with
APPendIx
our own expertise and values.
KeY Issues & PrIorItIes
Education Transform Transformation ation Community Engagement and Employee Volunteerism Entrepreneurship and Social Innovation Empowering Girls and Women
11 1 11 About This Report/Approach to Assurance Assurance 112 1 12 GRI GRI Content Index Index 119 1 19 UN Global Compact— Communication on Progress Progress
Access the Report Builder
The Intel World Ahead Program delivers resources in the form of technology, Internet access, and digital content, and works to implement effective e-learning environments. Our Emerging Markets Platform Group conducts research and denes, develops, and markets technology platforms designed for emerging markets, including innovative solutions for education. Intel Labs invests in university research and works to advance collaboration among academic thought leaders in essential technology areas such as visual computing, security, and mobile computing.
We search for opportunities that create shared value for Intel, our stakeholders, and society. The trust, credibility, and goodwill that we have built with governments, neighbors, schools, and others in our communities have helped create a positive business environment for Intel. When we want to
Intel’s investments in education expand opportunities for young people, while also beneting the company. Education is the foundation of innovation, and as a technology company, Intel’s success rests on the availability of skilled workers, a healthy technology ecosystem, and knowledgeable customers. In turn, the health of local economies—including those where our employees live and work—depends on access to technology and quality education. International studies show that education plays a pivotal role in fostering labor productivity and economic growth. Our education programs support our long-term corporate diversity objectives by encouraging women, girls, and students in underserved communities to pursue careers in science, technology, engineering, and math. Applications of technology in education also provide market opportunities for Intel.
Funding for our education and social programs comes from both Intel Corporation and the Intel Foundation. The goals of the Intel Foundation— founded in 1989 and funded solely by donations from Intel Corporation— are to increase interest in math and science education, and to help develop
2010 2010 Corporate Responsibility Report www.intel.com/go/responsibility
Intel s nancial and in-kind support—as well as volunteerism by our employees—enables governments, non-governmental organizations (NGOs), and educators to reach their goals more effectively. The net result is shared
93 Back
Next
Previous View
References to “Intel” throughout this section refer to Intel Corporation, not the Intel Foundation.
1
s o C I A L
f A C t o r s
3 Letter From Our CEO overvIew
5 Corporate Prole 9 Strategy and Management Approach
social value that ranges from expanding technology access for students in emerging markets to helping local nonprot organizations serve more people through better use of technology and more efcient processes.
2010 scial I saph I say
GovernAnCe And eConomIC fACtors
20 Financial Performance and Economic Impact Impac t 25 Governance, Ethics, and Public Policy Polic y
envIronmentAL fACtors
32 32 Environment Environment soCIAL fACtors
58 58 Workplace Workplace 79 79 Supply Supply Chain Chain 92 Cibi sciy sci y > Our Approach KeY Issues & PrIorItIes
Education Transform Transformation ation Community Engagement and Employee Volunteerism Entrepreneurship and Social Innovation
maig scial I a Ipac
Intel, academics, and other companies and organizations continue to nd it difcult to quantify the full effects of community and education programs, particularly when assessing long-term impact and change. Intel partners with and supports the research of other organizations that are developing metrics in this area, and we work with independent research organizations such as SRI International and the Education Development Center’s Center for Children and Technology to evaluate our education initiatives and activities. We also invest in our own research to measure and quantify the social impact of our education and community programs. A recent study by study by the Intel Labs Interactions and Experience Research group looked at how social and cultural forces affect the impact of technology interventions in developing communities. To access other reports and case studies on our program evaluation and measurement activities, visit our Evidence of Impact web Impact web site.
APPendIx
Cash: charitable contributions and community
$88,781,421
investments (Intel and Intel Foundation) Estimated value of employee volunteer time
$22,840,0281
In-kind giving (product or services donations) (Intel Corporation)
$36,913,3632
Co-funding secured for three of our strategic education initiatives3
~$36,000,000
Cal culation based on 1,085,432 volunteer hours in 2010 and the 2009 Valu e of Volunteer Time rate of $20.85 per hour, published by Independent Sector. 2 In 2010, in-kind giving increased signicantly due to a one-time large donation of surplus fab equipment to a university. As with surplus equipment donations in previous years, that donation was included at its resale/fair market value. 3 We have inspired other compan ies and governments to make contributions that amplify th e 1
impact of Intel’s social investments, including co-funding for our Intel® Teach, Intel® Learn, and Intel International International Science and Engineering Fair programs.
I aii h i, a b gp ac Il a lpig pc a li a ccial iiiai ha a cial challg i cai, halhca, a h i.
sagic Giig say
Empowering Girls and Women Performance Summary & Goals
A
2010
2009
2008
2007
2006
u.s.
$60, $60,20 201 1,525 ,525
$5 $59, 9,722, 7 22,81 818 8
$6 $62, 2,00 002, 2,26 262 2
$66 $66,0 ,001 01,2 ,263 63
$6 $63, 3,25 253, 3,59 599 9
Total Foundation Cash
$3 $35, 5,2 250, 50,3 352 52
$31 $31,748 ,748,9 ,95 51
$29, $29,249,452
$30, $30,432,6 32,692 92
$33, $33,113,168
11 1 11 About This Report/Approach to Assurance Assurance
Total Corporate Cash
$2 $23, 3,6 642, 42,6 629 29
$18,052, 0 52,4 440 40
$24, $24,533, 5 33,853 8 53
$ $2 24,496,0 96,057 57
$25, $25,625, 6 25,670 6 70
112 1 12 GRI GRI Content Index Index
In-kind Giving
$1,3 ,308 08,5 ,544 44
$9,9 $9,92 21,427 ,427
$8,2 $8,21 18,957 9 57
$11,072 ,072,5 ,51 14
$ $4, 4,514,761 7 61
119 1 19 UN Global Compact— Communication on Progress Progress
Iaial
$65, $65,4 493, 93,259 2 59
$4 $40, 0,34 342, 2,702 7 02
$40, $40,4 471,7 71,738 38
$43 $43,2 ,21 13,066 0 66
$33, $33,156,8 56,898 98
Total Foundation Cash
$5,492 92,6 ,67 79
$5,0 $5,073 73,2 ,277 77
$6,6 $6,60 01,840 ,840
$8,8 $8,860 60,,188
$ $7 7,954 ,954,,777 777
Total Corporate Cash
$2 $24, 4,399, 3 99,062 0 62
$25, $25,233, 2 33,768 7 68
$23, $23,000, 0 00,523 5 23
$2 $24, 4,674, 6 74,666 6 66
$2 $23, 3,319,929 9 29
In-kind Giving
$3 $35, 5,6 604, 04,819
$10,035, 0 35,657 6 57
$10,869, 8 69,375 3 75
$9,678, 6 78,212
$1,882 ,882,,192
$125 $125,69 ,698,0 8,085 85
$100, $100,065 065,52 ,520 0
$1 $102 02,47 ,474,0 4,000 00
$109,2 109,214 14,32 ,329 9
$96,4 $96,410 10,49 ,497 7
0.8%
1.8%
1.3%
1.2%
1.4%
1
tal Giig Access the Report Builder
tal Giig a a Pcag
P-a n Ic 2010 2010 Corporate Responsibility Report www.intel.com/go/responsibility
In 2010, in-kind giving increased signicantl y due to a one-time large donation of surpl us fab equipment to a university. As with surplus equipment donation s in previous years, that donation was included at its resale/fair market value.
1
94 Back
Next
Previous View
s o C I A L
f A C t o r s
3 Letter From Our CEO overvIew
5 Corporate Prole 9 Strategy and Management Approach GovernAnCe And eConomIC fACtors
20 Financial Performance and Economic Impact Impac t 25 Governance, Ethics, and Public Policy Polic y
envIronmentAL fACtors
32 32 Environment Environment soCIAL fACtors
58 58 Workplace Workplace 79 79 Supply Supply Chain Chain 92 Cibi sciy sci y Our Approach KeY Issues & PrIorItIes
> Education Transform Transformation ation Community Engagement and Employee Volunteerism Entrepreneurship and Social Innovation Empowering Girls and Women Performance Summary & Goals APPendIx
Education Transformation Countries around the world share the goal of having a vibrant economy sustained by quality education, a skilled workforce, and innovation. Through our education initiatives and investments, Intel is helping communities build local capacity while preparing the next generation of innovators. Over the past decade, Intel and the Intel Foundation have invested more than $1 billion to improve education around the world. The United Nations (UN) Millennium Development Goals call for a full course of primary schooling for children everywhere. Intel supports this goal and believes that to succeed in today’s innovation economy, children need a solid math and science foundation coupled with 21st century skills, such as digital literacy, problem-solving, critical thinking, and collaboration. Intel’s model combines advocacy for policy reform, curriculum standards and assessment, sustained professional development, information and communications technology (ICT), and support of research and evaluation. We collaborate with governments, policy makers, local organizations, and other companies to make this model viable worldwide—through scalable programs and competitions, technology solutions, and ecosystem support.
11 1 11 About This Report/Approach to Assurance Assurance 112 1 12 GRI GRI Content Index Index
“ The [Intel Teach] program is so much more than
119 1 19 UN Global Compact— Communication on Progress Progress
technology training. It is solid curriculum training. It goes beyond theories and teaches how to develop meaningful technology integration into core subject areas. The program is very powerful
Access the Report Builder
and will change any teacher who embraces it. It has
ucat on rans ormat on
Policy
Research & Evaluation
Curriculum & Assessment
Education Transformation
Information Communications Technology
Professional Development
thi chi appach hlpig g ip cy cpii a h qaliy hi cai y ha l ccl gag i lipl pa h l.
Pga Aac tachig a Laig Intel has over 200 programs in 70 countries that provide professional development for teachers; support student achievement in science, technology, engineering, and math (STEM); enable access to relevant, local digitized content; and more. Below is information about a few of Intel’s programs that are helping to transform education worldwide. Visit the Intel Education web Education web site for more detail on these and additional programs. Il® tach Pga. Since Pga. Since 1999, the Intel® Teach Program has helped teachers integrate technology and create active learning environments in their classrooms. Intel Teach offers in-depth professional development for K−12 teachers, helping them implement real-life projects and make concrete changes in their teaching through the effective integration of technology. As of the end of 2010, the program had provided professional
2010 2010 Corporate Responsibility Report www.intel.com/go/responsibility
denitely shaped the way I taught students, and the way I continue to train teachers today.”
development for over 9 million teachers in more than 60 countries. Intel is on target to train 10 million teachers by the end of 2011.
Jennifer Hettler, Education Specialist, Wichita Falls, Texas Texas 95 Back
Next
Previous View
s o C I A L
f A C t o r s
3 Letter From Our CEO overvIew
5 Corporate Prole 9 Strategy and Management Approach GovernAnCe And eConomIC fACtors
20 Financial Performance and Economic Impact Impac t 25 Governance, Ethics, and Public Policy Polic y envIronmentAL fACtors
32 32 Environment Environment soCIAL fACtors
58 58 Workplace Workplace 79 79 Supply Supply Chain Chain 92 Cibi sciy sci y Our Approach KeY Issues & PrIorItIes
> Education Transform Transformation ation Community Engagement and Employee Volunteerism Entrepreneurship and Social Innovation Empowering Girls and Women Performance Summary & Goals APPendIx
11 1 11 About This Report/Approach to Assurance Assurance 112 1 12 GRI GRI Content Index Index 119 1 19 UN Global Compact— Communication on Progress Progress
Governments align Intel Teach to their professional development offerings, build support into their stafng and budgets, and agree to support localization. In each region, Intel builds capacity and ensures sustainability of the program and its impacts by training Intel Teach trainers, who, in turn,
received Intel Teach training. Independent evaluation is integral to the Intel Teach Program. To view survey results, evaluations, reports, and case studies about Intel Teach, visit the Evidence of Impact web Impact web site.
share their skills with other teachers in the region. Nonprot organizations provide logistical support, and multilaterals (such as USAID and USAID and UNESCO) UNESCO) and other for-prot companies help provide funding, stafng, and policy support. The program has inuenced thinking on policies related to ICT and teachers. For example, Intel worked with UNESCO on a teacher policy toolkit, and with the International Society for Technology in Education on teacher and administrator technology literacy standards.
Il® La Pga.for Pga. Since Since its launch in 2003, Intel® Learn hastobeen providing opportunities children in underserved communities acquire technology literacy, problem solving, critical thinking, and collaboration skills. Funded by the Intel Foundation, the program extends learning beyond classrooms to informal environments in local community centers, and uses an engaging, project-centered approach. Intel and the Intel Foundation provide support for Intel Learn, which has reached more than 1.4 million learners in 15 countries. The program includes over 90 hours of curriculum designed to tap into children’s interest in their communities. In 2010, we added a new program unit, “Intel Learn Technology and Entrepreneurship,”
Intel Teach is highly scalable, enabling systemic change. The program includes face-to-face and online instruction, and comprises a suite of courses and materials that have been translated into 26 languages. To help expand the program’s reach, in 2010 Intel launched Intel® Teach Elements Elements,, a series of e-learning courses. Intel Teach Elements courses are available for free online or on CD, and can stand alone or be used to enhance other Intel Teach Program offerings. Through the Intel Teach Elements user-friendly animated lessons, educators learn to develop materials and activities designed to engage their students with self-directed, projectbased learning. Current offerings include three courses, each with multiple modules and lessons, and we expect to add two more courses in 2011. More than 263,000 teachers have already been trained using Intel Teach Elements coursework. In many countries, Intel Teach is the primary ICT training program for educators, with ministries of education awarding certication, promotions, and salary increases based on course completion. In France, Intel Teach courses are part of the Ministry of Education’s web portal for all teachers; and in Egypt, the Ministry of Education requires that all teachers take Intel Teach or equivalent computer coursework to be eligible for promotion. In China, over 1.7 million teachers—12% of all K−12 teachers in the country—have
through which children formulate a business idea, and then use computer and Internet skills to research, create, and present a business plan. Read more Intel Learn stories of impact. impact.
“ Rates of completion—about 95%—were astounding and almost unheard of for an informal education program. That speaks to the quality of the [Intel Learn] program.” Vera Michalchik, Research Social Scientist, SRI International
Access the Report Builder 2010 2010 Corporate Responsibility Report www.intel.com/go/responsibility 96 Back
Next
Previous View
s o C I A L
f A C t o r s
3 Letter From Our CEO overvIew
5 Corporate Prole 9 Strategy and Management Approach
ecai Pga a Aciii by h nb Teachers trained through the Intel® Teach Program since 1999
9 million in >60 countries
Young people reached through the Intel® Learn Program since 2003
>1.4 million in 15 countries
Youths served annually at Intel Computer Clubhouses
25,000 at 100 Computer Clubhouses in 20 countries
Students reached through the Intel International Science and Engineering Fair (Intel ISEF) in 2010
>1500 students at Intel ISEF
Inte Intel® l® Hi High gher er Educa Educati tion o n Progr Program am
Inve Investm stmen ents ts and pr progr ogram amss at at universities in >80 countries
PCs donated through Intel ICT in Education program as of year-end 2010
~1 ~100,000 00,000 in >40 countries
and learning, we hope to encourage young people to pursue advanced education and careers in math, science, and engineering. Watch the videos of 10 Intel ISEF nalists examining nalists examining 10 global issues.
GovernAnCe And eConomIC fACtors
20 Financial Performance and Economic Impact Impac t 25 Governance, Ethics, and Public Policy Polic y envIronmentAL fACtors
32 32 Environment Environment soCIAL fACtors
58 58 Workplace Workplace 79 79 Supply Supply Chain Chain 92 Cibi sciy sci y Our Approach KeY Issues & PrIorItIes
> Education Transform Transformation ation Community Engagement and Employee Volunteerism Entrepreneurship and Social Innovation Empowering Girls and Women Performance Summary & Goals APPendIx
11 1 11 About This Report/Approach to Assurance Assurance
>6 million students at local and regional science fairs afliated with Intel ISEF
Il a h Il fai ha a ai ci ai a ipig h qaliy cai a chlgy acc li.
kl™ Laig a tachig tchlgy. The tchlgy. The skoool™ Learning and Teaching Technology program supports math and science learning for learners 13−15 years old—the age when many young people progress from concrete to more abstract thinking. Skoool.com Skoool.com is is a web-based e-learning portal designed for students working alone or in a classroom setting. The program is available in 25 countries and has reached millions of students.
112 1 12 GRI GRI Content Index Index
Cpii Ipi Yg Ia
119 1 19 UN Global Compact— Communication on Progress Progress
The Intel Foundation is the lead sponsor of two premier science competitions, the Intel International Science and Engineering Fair (Intel ISEF) and the Intel Science Talent Search (Intel STS), which are both programs of Society for Science & the Public. The competitions encourage students to solve real-world problems and tackle challenging scientic questions through original research. In 2008, the Intel Foundation committed to
Il Iaial scic a egiig fai (Il Isef). The Isef). The world’s largest pre-college science competition brought together more than 1,600 young scientists from nearly 60 countries in May 2010. Each year, more than 6 million students who take part in local and regional science fairs within an Intel ISEF-afliated network vie for the opportunity to attend Intel ISEF. Intel employees often serve as mentors for the young scientists, and also volunteer at the events. For more information, visit the Intel ISEF ISEF web web site. In conjunction with Intel ISEF, Intel hosts the Intel ISEF Educator Academy, which brings together select groups of educators and government ofcials to share resources and explore proven methods of engaging students in math and science. In 2010, we added regional locations for the Intel ISEF Educator Academy. At the rst Asia Science Educator Academy, in August 2010, 67 national education policy makers, education specialists, curriculum planners, and science professionals from 15 countries developed action plans to support STEM education across the region. And at the rst Latin American Academy for Science Educators, in November 2010, 43 representatives from 10 countries learned about Costa Rica’s science fair system—a role model for the region—and participated in workshops, poster sessions, and panel discussion discussions. s. Il scic tal sach (Il sts). Intel sts). Intel STS, the oldest and most prestigious pre-college science competition in the U.S., provides an opportunity for high school seniors to complete an original research project and have it judged by highly regarded professional scientists. The Intel Foundation awards more than $1.25 million to winning students and their schools during the annual competition. In 2010, over 1,700 students entered the contest, and 40 nalists traveled to Washington, D.C., where they competed for scholarships ranging from $20,000
Access the Report Builder 2010 2010 Corporate Responsibility Report www.intel.com/go/responsibility
invest $120 million to extend its support of Intel ISEF, Intel STS, and related initiatives for 10 years. Finalists and winners of these events are regularly invited to meet with presidents and other leaders in their countries. By celebrating students’ achievements and encouraging open-minded research
97 Back
Next
to $100,000. Erika DeBenedictis of Albuquerque, New Mexico, captured the top award for developing a software navigation system to improve spacecraft travel through the solar system.
Previous View
s o C I A L
f A C t o r s
3 Letter From Our CEO overvIew
5 Corporate Prole 9 Strategy and Management Approach GovernAnCe And eConomIC fACtors
20 Financial Performance and Economic Impact Impac t 25 Governance, Ethics, and Public Policy Polic y envIronmentAL fACtors
32 32 Environment Environment soCIAL fACtors
58 58 Workplace Workplace 79 79 Supply Supply Chain Chain 92 Cibi sciy sci y Our Approach KeY Issues & PrIorItIes
> Education Transform Transformation ation Community Engagement and Employee Volunteerism Entrepreneurship and Social Innovation Empowering Girls and Women Performance Summary & Goals APPendIx
11 1 11 About This Report/Approach to Assurance Assurance 112 1 12 GRI GRI Content Index Index 119 1 19 UN Global Compact— Communication on Progress Progress
rgial fai. Intel fai. Intel and the Intel Foundation also partner with governments to support local efforts to increase student interest in STEM sub jects. In 2010 2010,, for example, example, the Intel Foundation partn partnered ered w with ith an NGO to fund the rst science competition in the Arab world. Competitors included
Intel supports the use of technology in developing countries to create one-to-one (1:1) e-learning environments, which have a dedicated laptop computer for each student and teacher. We have developed the Intel® Learning Series,
102 “best of the best” young scientists from 10 Arab countries. Fatimah Abdulhakim, a young woman from Saudi Arabia, received the Grand award of $3,000 for her health science project. The Intel-sponsored competition in Ireland, SciFest 2010, attracted 2,650 competitors from almost 200 schools. Speaking at the SciFest launch, Conor Lenihan, Ireland’s thenMinister for Science, Technology, Innovation, and Natural Resources, said, “SciFest is a fantastic example of industry, the education sector, and government partnering together to promote science, technology, engineering, and maths.... SciFest plays a valuable role in helping to encourage young
a complete 1:1 e-learning solution for students that includes hardware, software, services, and support tailored for local needs and delivered by local vendors in each region where it is implemented. At the heart of the Intel Learning Series are Intel®-powered classmate PCs—affordable, rugged netbooks designed for interactive, collaborative learning in K−6 classes. Classmate PCs are giving thousands of children around the world their rst exposure to computers and the Internet. During 2010, Intel Learning Series solutions were selected for new deployments, including ones in Argentina, Brazil, Japan, Nigeria, Portugal, Spain, and Turkey. See the case study on study on the
people to pursue opportunities in the smart economy.”
Argentine deployment. Watch the videos on classmate PC deployments deployments.. In 2010, Intel partnered with Microsoft, Internet provider Safaricom, Equity Bank, and the Kenya Institute of Education on an initiative designed to make laptop and Internet connectivity more affordable to some 260,000 teachers in Kenya. Intel also helped the department of education in South Africa to launch the Teacher Laptop Initiative, aimed at enabling 400,000 teachers across the country to purchase affordable laptops.
th righ tchlgy ecai Powerful and energy-efcient Intel®-based PCs and servers, combined with software and fast Internet access, help students to acquire 21st century skills and educators to teach more effectively. Through the Intel World Ahead Program, Program, Intel has worked with more than 70 countries on over 200 programs aimed at making technology more available, affordable, and understandable to rst-time users. Intel-backed PC purchase programs enable governments to provide PCs at a more affordable price, allowing thousands of teachers and students to gain access to them for the rst time. Intel also supports initiatives to connect millions of people to the Internet with high-speed wireless technologies. In conjunction with the Intel World Ahead Program, Intel has donated 100,000 PCs to over 40 countries—part of a commitment to jump-start education in emerging markets.
eablig h ecy As a technology innovator and manufacturer of some of the most complex products in the world, Intel has developed effective decision-making practices and problem-solving capabilities that are applicable to addressing the huge challenge of global education transformation. To maximize impact, we share our core competencies as collaborators and partners with others who have visions similar to ours: universities, companies, development agencies, multilateral organizations, governments, nonprots, and more. Some of our activities in this area are described below. For more information on our public-private partnerships and strategic alliances in education, visit the Intel Education Education web web site.
Access the Report Builder 2010 2010 Corporate Responsibility Report www.intel.com/go/responsibility 98 Back
Next
Previous View
s o C I A L
f A C t o r s
3 Letter From Our CEO overvIew
5 Corporate Prole 9 Strategy and Management Approach GovernAnCe And eConomIC fACtors
20 Financial Performance and Economic Impact Impac t 25 Governance, Ethics, and Public Policy Polic y envIronmentAL fACtors
32 32 Environment Environment soCIAL fACtors
58 58 Workplace Workplace 79 79 Supply Supply Chain Chain 92 Cibi sciy sci y Our Approach KeY Issues & PrIorItIes
> Education Transform Transformation ation Community Engagement and Employee Volunteerism Entrepreneurship and Social Innovation Empowering Girls and Women Performance Summary & Goals APPendIx
11 1 11 About This Report/Approach to Assurance Assurance 112 1 12 GRI GRI Content Index Index 119 1 19 UN Global Compact— Communication on Progress Progress
G Pahip. In Pahip. In 2010, in conjunction with U.S. President Barack Obama’s “Educate to Innovate” campaign, Intel announced a $200 million commitment to help advance math and science education in the U.S. Intel was also a founder of “Change “ Change the Equation Equation,”,” a CEO-led initiative designed to answer the President’s call to move the U.S. to the top globally in science and math education over the next decade. In support of the initiative, Intel has committed to provide professional development training to 100,000 U.S. teachers over a three-year period. We are also expanding the Intel® Math Program, Program, an 80-hour professional development course designed to help K–8 teachers in the U.S. improve their students’ understanding of math. In early 2011, President Obama visited Intel to learn more about our commitment to innovation and investment in STEM education. Intel’s education partnerships with other governments include working with the Taiwan government, National Taiwan Normal University, and a group of ICT industry partners to convene over 230 teachers and faculty to discuss best-known methods for implementing 21st century learning and ICT in classrooms. mli-sakhl Cllabai. Intel Cllabai. Intel is a founding member of ATC21S, a collaboration with Cisco, Microsoft, and the University of Melbourne. This group—made up of 60 top thinkers in academia, government, and industry—is developing new approaches to help transform the teaching, learning, and assessment of skills needed by students to succeed as citizens and workers in the 21st century.
Implementers,” a course designed for government ofcials involved in the roll-out and integration of ICT in schools and colleges across Africa. In addition, Intel serves on the steering board of the Global Education Initiative (GEI), which is focused on supporting advancement of educaInitiative (GEI), tion through effective partnerships. GEI—which brings together over 40 companies, 14 governments, and more than 20 NGOs and development organizations—has provided millions of dollars in resource support in Jordan, Rajasthan Rajasthan (India (India),), Egypt, tthe he Palestinian nian Territorie Territories, s, and Rwand Rwandaa since 2004, reaching more than 1.8 million students and teachers. In 2010, GEI’s continuing efforts included restarting multi-stakeholder collaboration efforts in the Palestinian Territories and helping the government of Rwanda develop and implement a new ICT in Education policy. uiii. Intel uiii. Intel and the Intel Foundation support university programs for faculty and students to advance research and education in microprocessor technology, high-volume manufacturing, computer science, and a variety of other disciplines critical to our industry. The Intel® Higher Education Program interacts Program interacts with universities around the world through curriculum programs and research projects. Intel and the Intel Foundation’s support of universities includes grants, fellowships, scholarships, and internships for hundreds of university students each year, as well as funding for larger scale university research labs. In
Intel is also a partner in Innovate+Educate New Mexico, a collaboration of leaders from some of the largest U.S. corporations working to test, align, and support new approaches to STEM education. The group is using New Mexico as a test bed before scaling effective solutions across the country.
early 2011, Intel Labs—Intel’s research organization—announced plans to invest $100 million directly into U.S. university research over the next ve years, including the establishment of Intel Science and Technology Centers at multiple universities. Our university support also includes donations of equipment; for example, Intel Turkey is contributing equipment worth $2.5 million to improve the R&D capabilities and production capacity of a Middle East Technical University research and application center.
Intel also joined with UNESCO, Cisco, International Society for Technology in Education, and Microsoft to develop ICT Competency Standards for
To accelerate the adoption of cutting-edge technology in engineering education and prepare students for careers in critical technology areas, Intel
Teachers. These standards help educational policy makers and curriculum
works with universities to develop and disseminate curricula on advanced
Access the Report Builder 2010 2010 Corporate Responsibility Report www.intel.com/go/responsibility
Teachers. These standards help educational policy makers and curriculum developers identify the skills that teachers need to harness technology in education. In addition, Intel collaborated with Cisco; Education Impact; Microsoft; University of the Witwatersrand, Johannesburg; and the World Bank Institute to create “Certicate in ICT in Education for Policy
works with universities to develop and disseminate curricula on advanced topics, such as the parallel programming models used for Intel’s multi-core products. By year-end 2010, more than 4,300 faculty members from at least 2,000 universities in 93 countries were using our parallel programming curriculum.
99 Back
Next
Previous View
s o C I A L
f A C t o r s
3 Letter From Our CEO overvIew
5 Corporate Prole 9 Strategy and Management Approach GovernAnCe And eConomIC fACtors
20 Financial Performance and Economic Impact Impac t 25 Governance, Ethics, and Public Policy Polic y envIronmentAL fACtors
32 32 Environment Environment soCIAL fACtors
58 58 Workplace Workplace 79 79 Supply Supply Chain Chain 92 Cibi sciy sci y Our Approach KeY Issues & PrIorItIes
Education Transform Transformation ation > Community Engagement and Employee Volunteerism Entrepreneurship and Social Innovation Empowering Girls and Women Performance Summary & Goals APPendIx
11 1 11 About This Report/Approach to Assurance Assurance
Community Engagement and Employee Volunteerism One of Intel’s strategic objectives is to cultivate a workplace where employees can thrive on the job and in their communities. Our employees give generously of their time, skills, and technology expertise, donating more than 3 million hours of service over the past three years. We have a long history of engaging with stakeholders near our sites to identify local needs and determine what Intel and its employees can do to make the communities where we operate better places to work and live. We also recognize that Intel’s presence—particularly where we have large manufacturing facilities—has the potential to adversely impact communities, due to trafc, air quality, water usage, noise, lighting, or other issues. We strive to mitigate any negative impacts by collaborating with community members to effectively resolve concerns—whether we are starting operations in a new location, managing an ongoing facility, or exiting a community due to changes in our business plans. For a detailed chart outlining the stakeholder tools and processes that we use to manage local impacts and engage with our communities, see “Stakeholder “Stakeholder Engagement Engagement”” in this report. For information on Intel’s
Through the Intel Involved Matching Grant Program (IIMGP), the Intel Foundation extends the impact of that service by donating cash to qualied nonprots and schools where Intel employees and retirees volunteer at least 20 hours in a year. In 2010, our employees earned more than $7.9 million for schools and nonprot organizations, bringing total IIMGP contributions to more than $40.3 million since the program launched in 1995. Analysis of corporate volunteering best practices indicates a growing trend toward applying employees’ professional skills to help local organizations build capacity. In recent years, our employees have increasingly found opportunities to donate the skills that they have honed at Intel—providing legal, human resources, marketing, nance, and information technology (IT) expertise to schools, nonprots, and NGOs. During 2010, employees logged an estimated 300,000 hours of skills-based volunteerism. We believe that the impact of these hours tends to be signicant, in part because the services provided are those for which schools and nonprots would have to pay higher rates in the marketplace. Our Legal team, for example, donated 3,473 hours in 2010, estimated to be valued at over $800,000 (based on a $250 per hour rate from CECP CECP and and the Taproot Foundation). Employee Volunteer Rate 54 50
48
economic impact on communities, see the Financial Performance and Economic Impact section, Impact section, and to learn how we work to mitigate environmental impacts where we operate, see the Environment section. Environment section.
40
36
112 1 12 GRI GRI Content Index Index 119 1 19 UN Global Compact— Communication on Progress Progress
30
Il Il a skill-Ba vlig Our employees generously donate their energy, professional skills, and money to tackle environmental challenges, improve education, and help meet other community needs. In 2010, Intel employees donated over 1 million hours of service through the Intel Involved volunteer program—an aver-
t n e c r e P
20
10
38
36
38
40
40
38
40
Access the Report Builder 2010 2010 Corporate Responsibility Report www.intel.com/go/responsibility
age of 13 hours per employee at more than 4,900 schools and nonprot organizations in 38 countries. In 2010, 48% of our employees volunteered, exceeding our goal of 40%.
2006
Volunteer Goal
2007
2008
2009
2010
Volunteer Rate
=5,000 schools and nonprot organizations in 40 countries. I 2010, aly hal all ply li l i hi cii.
100 Back
Next
Previous View
s o C I A L
f A C t o r s
3 Letter From Our CEO overvIew
5 Corporate Prole 9 Strategy and Management Approach
Below are a few recent examples of ways that Intel employees helped to improve communities around the world in 2010. Read more volunteer stories on the Intel Involved web Involved web site.
GovernAnCe And eConomIC fACtors
20 Financial Performance and Economic Impact Impac t 25 Governance, Ethics, and Public Policy Polic y envIronmentAL fACtors
32 32 Environment Environment soCIAL fACtors
58 58 Workplace Workplace 79 79 Supply Supply Chain Chain 92 Cibi sciy sci y Our Approach KeY Issues & PrIorItIes
Education Transform Transformation ation > Community Engagement and Employee Volunteerism Entrepreneurship and Social Innovation Empowering Girls and Women Performance Summary & Goals APPendIx
11 1 11 About This Report/Approach to Assurance Assurance 112 1 12 GRI GRI Content Index Index 119 1 19 UN Global Compact— Communication on Progress Progress
• A team of employees in Folsom, California—all recent MBA graduates with a passion for public service—donated their skills to help create a business plan for Plates, a restaurant and catering business run by the St. John’s Shelter Program for Women and Children. After completing training programs at Plates, several shelter clients started full-time jobs in their communities. • Employees involved in Intel Israel’s agship community program Think Positive+ helped deliver after-school math, science, and English classes to hundreds of high school students. Twelve other high-tech companies have joined the Think Positive+ initiative, now in its eighth year. • 200 employees attending an Intel conference in Arizona spent an evening assembling 90 bicycles for children from the local Boys and Girls Club. Tears, screams of joy, and high ves lled the room when the kids arrived to accept their new bikes.
• In Costa Rica, our corporate investigator for Latin America donated his time to help the government and other local companies develop plans to prevent workplace violence, sharing his expertise and Intel best practices. In 2009, we launched the Intel Education Service Corps (IESC), a program that harnesses our employees’ enthusiasm for volunteerism while advancing Intel’s commitment to improving the quality of education through technology. IESC volunteers receive 30 hours of training, and then travel to schools, orphanages, and other locations in developing countries to facilitate installation of Intel-powered classmate PCs, and teach students, teachers, and parents how to use them. In 2010, 10 teams of IESC volunteers were deployed to Bangladesh, Bolivia Bolivia,, Egypt Egypt,, India India,, Kenya, Kenya, Uganda, Uganda, and Vietnam. Vietnam. The 52 volunteers partnered with seven NGOs on projects that included deploying over 1,000 Intel-powered classmate PCs; teaching more than 2,400 students; and training 100 teachers who, in turn, could train 1,000 additional teachers. The team in Bangladesh also partnered with the NGO BRAC to train over 100 adolescent girls to use computers and teach thousands of their peers.
• Intel Japan employees volunteered at Japan’s at Japan’s Science Science Research Research Festival Festival,, a science fair at the Ueno National Science Museum, and along with their family members created 200 picture books for children in refugee camps in Afghanistan, Afghanistan, Burma, Cambodia, Laos, and Thailand.
2010 vli by h nb Number of hours
38
Number of countries Percentage of employees who volunteered
• In Oregon, Intel employees serve as mentors and support suppor t internships for students with disabilities. In recognition of these efforts, Intel Oregon received the 2010 Outstanding Employer award from Incight, Incight, a local nonprot organization that empowers people with disabilities to become contributing members of society. • When arson destroyed most of Merritt Trace Elementary School near our Santa Clara campus, Intel volunteers pitched in to aid in the cleanup and help teachers ready portable classrooms for the students’
1,095,445
Schools or nonprots beneting from the program Total dollar match under Intel Involved Matching Grant Program1 Estimated in-kind value of volunteer hours 2
48% ~4,900 $7.9 million $22,840,028
Total estimated match based on 2010 employee volunteer hou rs at eligible organizations. Cal culation based on the 2009 Valu e of Volunteer Time rate of $20.85 per hour, published by Independent Sector. Sector.
1
2
w ia ha appialy 33% Il ply l h i 2010 la cai aciii; 57% ciy a ciic aciii; a 10%
Access the Report Builder
return.
ial, halh, a ay aciii. Acal i-la h ay b high, ic hi ia icl aiial i-la l aciii a chl a ciic gaizai.
2010 2010 Corporate Responsibility Report www.intel.com/go/responsibility 101 Back
Next
Previous View
s o C I A L
f A C t o r s
3 Letter From Our CEO overvIew
5 Corporate Prole
rcgizig a fig eply’ Iiiai
9 Strategy and Management Approach
Through the Intel Involved Matching Seed Grants program, launched in 2010, teams of employees can apply for funding from the Intel Foundation to get their creative volunteer initiatives off the ground. The Intel Foundation awards grants of up to $5,000 to underwrite selected employee-initiated community service projects. The amount of each grant is tied to the number of hours that employees plan to volunteer on the project. Projects are selected for grants based on their originality, potential impacts, measurable outcomes, and other criteria. Summaries of a few of the project proposals that received seed grants from the Intel Foundation in 2010 follow:
GovernAnCe And eConomIC fACtors
20 Financial Performance and Economic Impact Impac t 25 Governance, Ethics, and Public Policy Polic y envIronmentAL fACtors
32 32 Environment Environment soCIAL fACtors
58 58 Workplace Workplace 79 79 Supply Supply Chain Chain 92 Cibi sciy sci y Our Approach KeY Issues & PrIorItIes
Education Transform Transformation ation > Community Engagement and Employee Volunteerism
• Employees in Germany proposed building a learning pavilion, raft, and water lab to use for educational programs alongside a river. The seed grant will support the purchase of equipment for the lab. • Volunteers in Mexico proposed a recreational center at a school to give children a safe place to play, practice sports, and spend time with their peers. As part of this effort to get kids off the street, the volunteers plan to organize games and sports.
Entrepreneurship and Social Innovation
• Intel Russia employees proposed a children’s information laboratory equipped with tools for researching natural sciences—biology, ecology, chemistry, and physics—through practical, hands-on study. The employees will help with equipment installation, tutoring, mentoring, and teacher training. • To expand the horizons of young people at a local high school, volunteers from Intel Israel initiated a digital media program. The program introduces students to digital image editing, composition, and more. In addition to planning and setting up the program, volunteers have committed to work weekly with participating students, and to organize an exhibition of students’ work. We also extend the impact of Intel volunteers’ efforts and recognize their extraordinary achievements and impact through the Intel Involved Hero Award program. The annual overall winner of this honor earns a $10,000 Intel Foundation grant for his or her favorite school or nonprot and is recognized at Intel’s highest level recognition event, the Intel Achievement Award banquet in San Francisco, California. In 2010, there were two winners (announced in early 2011)—Amir Davis from Ireland, and Tom He from Chengdu, China—who each earned $10,000 for their volunteer organizations.
Empowering Girls and Women Performance Summary & Goals
m ci ail.
Intel Involved Hero Award Finalists
APPendIx
11 1 11 About This Report/Approach to Assurance Assurance 112 1 12 GRI GRI Content Index Index 119 1 19 UN Global Compact— Communication on Progress Progress
Ireland
Washington California
Arizona
China India
Israel
Malaysia
Access the Report Builder 2010 2010 Corporate Responsibility Report www.intel.com/go/responsibility
Argentina
102 Back
Next
Previous View
s o C I A L
f A C t o r s
3 Letter From Our CEO overvIew
5 Corporate Prole 9 Strategy and Management Approach GovernAnCe And eConomIC fACtors
20 Financial Performance and Economic Impact Impac t 25 Governance, Ethics, and Public Policy Polic y envIronmentAL fACtors
32 32 Environment Environment soCIAL fACtors
58 58 Workplace Workplace 79 79 Supply Supply Chain Chain 92 Cibi sciy sci y Our Approach KeY Issues & PrIorItIes
Education Transform Transformation ation > Community Engagement and Employee Volunteerism Entrepreneurship and Social Innovation Empowering Girls and Women Performance Summary & Goals APPendIx
11 1 11 About This Report/Approach to Assurance Assurance 112 1 12 GRI GRI Content Index Index 119 1 19 UN Global Compact— Communication on Progress Progress
Another Intel program, Sustainability ty in Action, provides provides funding and support for multi-disciplinary employee teams that initiate and carry out environmentally focused service projects. In 2010, Intel funded a range of projects, including creating a community water conservation demonstration garden in California, working with homeless youth to build a vegetable garden in Oregon, and building a windpowered mobile computer lab for remote schools in Costa Rica. For more information, see the Environment section Environment section of this report. To encourage employees to take responsibility for volunteer projects, Intel India launched a Social Initiatives Contest in 2009. Volunteers teamed up with NGOs of their choice to develop project proposals and apply for funding from Intel. In 2010, the second year of the program, employees submitted almost 50 applications, proposing a wide range of projects—including transforming trash into art supplies, working to prevent drug abuse among youths, setting up technology clubs for children living in slums, and creating multimedia education resources for nurses. Intel awarded cash grants to enable volunteers to implement 20 projects.
eply Giig Every year, we are inspired by the generosity of our employees, who, in addition to volunteering their time, contribute to food, clothing, school supply, and holiday gift drives, and donate millions of dollars to their communities. Through the annual Intel Community Giving Campaign in the U.S., employees and retirees make contributions to nonprot organizations that are matched (up to $10 million) with Intel Foundation funds to the United Way. The 2010 campaign generated a record $14 million in employee donations, up 15% over 2009. With the Intel Foundation match, the total contribution amounted to $24.6 million. In 2010, for the third year in a row, Intel placed in the top 10 United Way corporate campaigns in the U.S., and we received numerous recognitions from local United Way organizations for our commitment.
rpig naal a Haiaia dia When disasters occur around the world, Intel and its employees are quick to respond with generous donations of service, cash, and technology. We also invest in long-term recovery efforts and work to measure the impact of our actions over time. Some recent examples follow. Haii. In light of the overwhelming devastation caused by the January Haii. In 2010 earthquake, the Intel Foundation made immediate grants for relief and offered an employee matching program to assist with the relief efforts. Intel Corporation donated signicant hardware and expertise, including a mobile data center. The Intel Foundation and Intel Corporation are continuing to work with government and NGO partners to grant funds committed for rebuilding, particularly in the area of schools and education. Giving and planned long-term recovery support from Intel, the Foundation, and employees totaled more than $3 million. Chia. Intel Chia. Intel launched the iWorld initiative to help to restore education services after the 2008 earthquake in Sichuan Province. Working with other companies, we met our goal of establishing 200 e-classrooms by 2010— benetting more than 150,000 students. Intel and the Intel Foundation donated $5 million in nancial support for the project, and also provided Intel Teach and Intel Learn programs. By the end of 2010, 3,000 employees had also contributed over 50,000 volunteer hours to the effort, including collaborating with Junior Achievement to launch the Laws of Life mentoring program at 100 iWorld schools. The program focused on building student self-esteem and resilience in the wake of the disaster. Students collaborated on projects and wrote essays about their experiences, many of which were included in a book shared with other students throughout the region. Iia. In late 2009, oods hit the agricultural region of the Bagalkot disIia. In trict of Karnataka, causing a tragic loss of lives, homes, and livelihoods. Intel partnered with local NGOs on a program for long-term recovery, which included helping to establish cooperatives to enable farmers to share resources, improve irrigation and farming methods, and market their pro-
Access the Report Builder 2010 2010 Corporate Responsibility Report www.intel.com/go/responsibility
Intel also has a Matching Gifts to Education program, through which 50% of each donation that a U.S. employee makes to a K−12 school can be matched by an Intel Foundation grant of up to $5,000 per institution.
duce. To help those who had lost their livestock in the ooding, groups of families were given cows or sheep, and the program restored the shery occupations of over 48 families. The program also created revenue-generating micro-enterprises for women that led to self-sustaining businesses.
103 Back
Next
Previous View
s o C I A L
f A C t o r s
3 Letter From Our CEO overvIew
5 Corporate Prole 9 Strategy and Management Approach GovernAnCe And eConomIC fACtors
20 Financial Performance and Economic Impact Impac t 25 Governance, Ethics, and Public Policy Polic y envIronmentAL fACtors
Entrepreneurship and Social Innovation Intel was founded by inventors, and the company’s continued existence depends on innovation and entrepreneurship. Our own history reinforces our belief that innovation is key to driving economic growth and improving social conditions. We are passionate about fostering entrepreneurship in communities around the world and advancing innovation to address global challenges.
32 32 Environment Environment soCIAL fACtors
58 58 Workplace Workplace 79 79 Supply Supply Chain Chain 92 Cibi sciy sci y Our Approach KeY Issues & PrIorItIes
Education Transform Transformation ation Community Engagement and Employee Volunteerism > Entrepreneurship and Social Innovation Empowering Girls and Women Performance Summary & Goals APPendIx
11 1 11 About This Report/Approach to Assurance Assurance 112 1 12 GRI GRI Content Index Index 119 1 19 UN Global Compact— Communication on Progress Progress
epig ep Since 2005, Intel has invested in a number of initiatives aimed at inspiring, and providing education and critical skills for young entrepreneurs. Many initiatives include a social entrepreneurship component that encourages students to develop projects or business plans that address social or environmental challenges. Cpii. The Cpii. The global Intel Challenge business plan competition invites university students from around the world to submit plans for turning their technology ideas into business opportunities, and to showcase those plans to potential investors. The Intel Challenge has regional competitions—including several new ones added in 2010 in Europe, the Middle East, and Latin America—and culminates in the global nals at the annual Intel + UC Berkeley Technology Entrepreneurship Challenge (IBTEC). (IBTEC) . Competitors benet from the education that the contest provides, along with introductions to potential investors, publicity, and feedback from industry experts. Employees from Intel Capital, Intel’s venture capital organization, work as mentors and judges for the competition. In 2010, at the sixth annual IBTEC competition, 27 nalist teams from 19 countries presented plans for businesses that could positively impact society through the commercialization of new and innovative technologies. First-place winner, OsComp Systems of the Dominican Republic, received $25,000
ephip ecai a tchical skill. We skill. We partner with educators and governments to encourage the development of entrepreneurial teaching, culture, and learning worldwide through curriculum, training, workshops, and leadership seminars. The Intel Higher Education Program, in partnership with the Lester Center for Entrepreneurship and Innovation at the UC Berkeley Haas School of Business, offers Entrepreneurship Theory to Practice seminars for technical and business university faculty around the world. The seminars demonstrate how to build entrepreneurship programs that drive new uses of technology and promote successful technology commercialization. One of the goals of the seminars is to accelerate the move of technology out of research labs and into local communities. Our partnership with the Lester Center also includes the Global Entrepreneurship Leadership Symposium (GELS), aimed at developing a supportive entrepreneurial ecosystem for start-up companies. GELS provides concepts, processes, and tools to enable qualied individuals to effectively mentor emerging entrepreneurs. Program participants learn how to support entrepreneurial success at the individual level, as well as at national and regional policy and governance levels. In 2010, we added a new entrepreneurship curriculum to the Intel Learn Program,, a project-based, after-school learning program for children in Program underserved communities. The new curriculum introduces young learners around the world to the basic concepts of entrepreneurship, and demonstrates how technology can be used to advance a business idea. Participants use Internet tools and ofce applications to research and formulate a business idea, and then create and present a business plan based on that idea. In 2010, over 375 young entrepreneurs from 15 Malaysian schools participated in the Penang Young Enterprise* (YE) Achievers Sales Fair. The event was organized by Intel Malaysia, in collaboration with the American
Access the Report Builder 2010 2010 Corporate Responsibility Report www.intel.com/go/responsibility
from the Intel Foundation for a plan that would enable energy suppliers to enhance production and cut costs through the use of new natural gas compression technology.
Malaysian Chamber of Commerce, to enable students to showcase their entrepreneurial skills. Through the YE program, students are given the opportunity to learn the entire process of starting up a company,
104 Back
Next
Previous View
s o C I A L
f A C t o r s
3 Letter From Our CEO overvIew
5 Corporate Prole 9 Strategy and Management Approach GovernAnCe And eConomIC fACtors
20 Financial Performance and Economic Impact Impac t 25 Governance, Ethics, and Public Policy Polic y envIronmentAL fACtors
32 32 Environment Environment soCIAL fACtors
58 58 Workplace Workplace 79 79 Supply Supply Chain Chain 92 Cibi sciy sci y Our Approach KeY Issues & PrIorItIes
Education Transform Transformation ation Community Engagement and Employee Volunteerism > Entrepreneurship and Social Innovation Empowering Girls and Women Performance Summary & Goals APPendIx
11 1 11 About This Report/Approach to Assurance Assurance 112 1 12 GRI GRI Content Index Index 119 1 19 UN Global Compact— Communication on Progress Progress
developing a business plan, selling products, and managing a business. After nine months of collaboration with numerous corporate sponsors, students gathered together at the sales fair to showcase their businesses and sell their products. Intel recently launched the Intel® Easy Steps digital literacy program for adult learners who have little or no experience with computers. The program is aimed at helping adults in developing countries learn skills that can assist them in creating small businesses or micro-enterprises. Participants learn basic computer skills, such as Internet searching, e-mail, word processing, spreadsheets, and multimedia. The program is deployed through partnerships with NGOs and governments. Following successful pilots in India and Pakistan, Intel Easy Steps rolled out formally in the Asia-Pacic region in 2010. In December 2010, Intel signed a memorandum of understanding with Nehru Yuva Kendra Sangathan, Sangathan, the the Indian government’s Ministry of Youth Affairs & Sports, to incorporate Intel Easy Steps into the curriculum of a government training program for 50,000 promising youth leaders from across the country. These young leaders are empowered to go back to their communities to share information about opportunities to participate in government programs and social development initiatives.
taig Ia i sli Intel enables the transformation of innovative ideas into action, by architecting solutions, providing training and consultation, and co-creating new products and technology solutions that meet social needs. Our goal is to support sustainable, local social businesses and par tnerships that address critical community needs and to help scale replicable technology solutions. nHp. NetHope is a consortium of chief information ofcers, senior nHp. NetHope program managers, and technical experts from some of the largest international NGOs. Intel started collaborating with NetHope in 2008 to help develop ICT solutions in support of member NGOs’ healthcare, economic development, and disaster relief programs. One of NetHope’s showcase
technology. In November 2010, Intel and Microsoft announced that they would contribute resources for cloud-based computing solutions for the developing world, in support of NetHope’s efforts to accelerate deployment of ICT solutions to help doctors, nurses, teachers, and students in sectors such as micro-nance, agriculture, education, and health. Ga Il scial Bi. In Bi. In 2008, Intel Capital, Intel’s global investment organization, formed a business venture with Grameen Trust aimed at applying self-sustaining ICT solutions to address issues related to poverty, healthcare, and education in developing countries. The business venture combines Intel’s technology innovation and Grameen’s extensive experience in creating opportunities for economic development and income generation at the village level. In 2010, the organization continued to develop projects in India and Bangladesh, including: a maternal healthcare project that is working to identify high-risk pregnancies in rural areas using a mobile software solution to collect information and send it over the Internet to healthcare clinics for analysis; and a soil-testing project that helps farmers increase productivity by selecting appropriate seeds and fertilizers. The goal is to develop technology solutions as a means to economic development using appropriate local skills, knowledge, and partners. For more details, visit the Grameen Intel Social Business web Business web site. Halhca sli. The sli. The Intel Health Guide is a comprehensive, nextgeneration remote health management (RHM) solution that combines an in-home patient device with an online interface that allows clinicians to monitor patients and remotely manage care. The Intel Health Guide encourages patients to take a more active and positive role in their own care. It also enables more informed and personalized care. Another solution, the Intel® Reader, enhances independence for people with reading-based learning disabilities such as dyslexia, low vision, or blindness, by providing convenient and exible access to a variety of printed materials. The Intel Reader’s unique design combines a high-resolution camera with the power of an Intel® Atom™ processor that converts printed text to digital text, and
projects in 2010 was a multi-year initiative launched by the President of Tanzania to revolutionize his country’s education system through
Access the Report Builder
then reads it aloud. Going forward, these products will be supported by Intel-GE Care Innovations, LLC, LLC , formed in early 2011.
2010 2010 Corporate Responsibility Report www.intel.com/go/responsibility 105 Back
Next
Previous View
s o C I A L
f A C t o r s
3 Letter From Our CEO overvIew
5 Corporate Prole
Bilig h ecy
9 Strategy and Management Approach
In keeping with our belief that public-private partnerships are crucial to achieving scalable impact, Intel develops alliances with governments, leading NGOs, and other companies to develop technology solutions to support entrepreneurship and social innovation.
GovernAnCe And eConomIC fACtors
20 Financial Performance and Economic Impact Impac t 25 Governance, Ethics, and Public Policy Polic y envIronmentAL fACtors
32 32 Environment Environment soCIAL fACtors
58 58 Workplace Workplace 79 79 Supply Supply Chain Chain 92 Cibi sciy sci y Our Approach KeY Issues & PrIorItIes
Education Transform Transformation ation Community Engagement and Employee Volunteerism > Entrepreneurship and Social Innovation Empowering Girls and Women Performance Summary & Goals APPendIx
11 1 11 About This Report/Approach to Assurance Assurance 112 1 12 GRI GRI Content Index Index 119 1 19 UN Global Compact— Communication on Progress Progress
Pa a n Bgiig. In Bgiig. In September 2010, Intel CEO Paul Otellini joined the Steering Committee for Partners for a New Beginning, a non-partisan, nonprot organization established by the Aspen Institute to harness private sector and civil society resources to advance engagement with Muslims around the world based on mutual respect and responsibility. Steering Committee members have pledged to use their expertise, global networks, and access to resources to foster projects that advance opportunity in the Muslim world in the areas of economic opportunity, science and technology, and education. schab fai scial ephip. ephip. As As a partner with the Schwab Foundation, Intel helps to promote social entrepreneurship. ship. Working Working with academic partners, Intel and Schwab have produced a detailed document designed to encourage future business leaders to integrate community and environmental concerns into their business plans and promote ethical and responsible business practices. mailaya Halh Pga. The Pga. The Intel World Ahead program recently concluded a project to bring healthcare ICT solutions to Nigeria. A publicprivate partnership between Intel, the Nigerian Federal Capital Territory Millennium Development Goals Unit, and health ofcials has helped increase healthcare delivery to underserved communities by 270%, with over 336 settlements and 10,000 patients served, and has registered a 900% increase in disease detection. Aia nGo Iai si. Intel si. Intel and the Hope Institute of Korea united to organize the rst Asia NGO Innovation Summit in Seoul, Korea in September 2010. The summit brought together 67 leaders, representing
tch Aa—Il ei Aa. Since Aa. Since 2001, Intel has supported the Tech Awards (a Awards (a program of the Tech Museum) by sponsoring the Intel Environment Award, which recognizes individuals and organizations working to solve global challenges by creating and using simple and complex technology. In 2010, The Peer Water Exchange, a project of Blue Planet Network, received the award for helping to support nearly $27 million in member water and sanitation projects, bringing safe drinking water to nearly 700,000 people. Aacig scial Iai i Chia. In addition to helping to connect thought leaders and key stakeholders at the global and regional level, we help drive social innovation at the country level. One such example is in China, where our corporate responsibility team has aligned key programs and initiatives to support the government’s strategic objectives of promoting social innovation and the creation of a more vibrant social sector. In 2010, Intel launched a new Innovation Award for Non-prot and Technology for Social Innovation with the Ministry of Civil Affairs to encourage ICT adoption by nonprot organizations in the country. Intel China also hosted the rst Technology for Social Innovation Forum at the Intel Developer Forum in Beijing, with 17 winners from among 250 entries evaluated by a panel of government leaders and leading think tanks. A key objective of the initiative is to build capacity in the Chinese social sector to help address social challenges more effectively than can be accomplished by the government or companies working alone.
“ The Innovation Award for nonprot collaboration, initiated by Intel, will become an important catalyst of the social innovation ecosystem in China. It could enable a nonprot platform economy, and Intel denitely plays a critical role in the process.”
Access the Report Builder 2010 2010 Corporate Responsibility Report www.intel.com/go/responsibility
NGOs from 15 Asian countries, to address the common challenges that NGOs face when creating and implementing capacity-building and social innovation programs. The delegates shared ideas and approaches for overcoming these challenges.
Yang Tuan, Director Director,, Social Policy Ofce, Chinese Acad emy of Sciences, and a judge for the 2010 and 2011 awards
106 Back
Next
Previous View
s o C I A L
f A C t o r s
3 Letter From Our CEO overvIew
5 Corporate Prole 9 Strategy and Management Approach GovernAnCe And eConomIC fACtors
20 Financial Performance and Economic Impact Impac t 25 Governance, Ethics, and Public Policy Polic y envIronmentAL fACtors
Empowering Girls and Women We believe that to foster innovation and drive economic growth, we must enable everyone—especially girls and women—with education and entrepreneurial skills. This is a goal we share with governments, NGOs, and development agencies, because by empowering girls and women, we also improve the lives of their children, families, and communities.
32 32 Environment Environment soCIAL fACtors
58 58 Workplace Workplace 79 79 Supply Supply Chain Chain 92 Cibi sciy sci y Our Approach KeY Issues & PrIorItIes
Education Transform Transformation ation Community Engagement and Employee Volunteerism Entrepreneurship and Social Innovation > Empowering Girls and Women Performance Summary & Goals APPendIx
11 1 11 About This Report/Approach to Assurance Assurance 112 1 12 GRI GRI Content Index Index 119 1 19 UN Global Compact— Communication on Progress Progress
Intel is actively engaged in a number of initiatives to enable girls and women to pursue education and entrepreneurship, from education programs such as the Intel Learn Program to programs that improve access to technology such as Intel Easy Steps. We are also committed to increasing the representation of women in technical and leadership roles in our own workforce. Read more about our programs to advance opportunities for women at Intel in the Workplace Workplace section section of this report.
ecaig Ca oppiy Research has shown that devoting resources to quality education for girls is among the best investments that any society can make. A 100-country study by the World Bank showed that increasing the number of women with a secondary education by 1% boosts annual per capita income growth by 0.3 percentage points. For many years, Intel’s education programs have been helping to improve the social and economic standing of females around the world. Close to 700,000 girls in underserved parts of the world have participated in the Intel Learn Program, Program, acquiring technology and life skills that enable them to advocate for themselves and their communities. But the impact is often best illustrated at the individual level. For example, 15-year-old Farha from India was pulled out of school by her parents, who feared that her reputation would be ruined if she was allowed to continue her education with boys. Farha learned about the Intel Learn Program at
about the program, the girls convinced their parents to visit the center, and, ultimately, the parents permitted the girls to join the program. Based on their strong performance in Intel Learn, the girls were allowed to return to school, and Farha began to pursue her dream of becoming a doctor. Some 4 million female teachers have participated in the Intel Teach Program,, which helps educators integrate technology and project-based Program approaches to learning into their classrooms. After a teacher in India completed the program, she led her students through a project about young children being forced to drop out of school to work. The students used mathematical models to show parents that, over the long run, their children would earn more if they stayed in school. As a result, seven parents allowed their children to return to school. Another Intel program addresses the problem of math anxiety in women and girls. A study from the University of Chicago indicates that female elementary school teachers who are anxious about math may undermine girls’ condence in their math abilities. The Intel Math Program Program helps helps remedy this problem by providing teachers with 80 hours of instruction to improve their own math knowledge, along with creative ways to teach the subject. In recent years, top winners in the world’s largest pre-college science competitions—Intel competitions— Intel ISEF and ISEF and Intel STS STS—have —have been girls, and they have presented projects with the potential to alter people’s lives. Amy Chyao, 16-year-old winner of the 2010 Intel ISEF competition, developed a photosensitizer for an emerging cancer treatment that uses light energy to activate a drug that kills cancer cells. Asil Shaar and Nour Alarda, two determined Palestinian girls who won a special award at the 2010 Intel ISEF competition, made multiple long trips through several military checkpoints to nd the materials they needed to create their project—an obstacledetecting cane for the blind. Intel and the Intel Foundation also have a long history of providing scholarships and research fellowships to women and underserved minorities to
Access the Report Builder 2010 2010 Corporate Responsibility Report www.intel.com/go/responsibility
her local community center, and without her parents’ knowledge, took her sister to learn more about it. Armed with information they had received
pursue careers in engineering, computer science, and other technical elds. In 2010, the Intel Foundation awarded scholarships and grants totaling over $5.5 million to prepare women and underserved youth with better skills for the innovation economy.
107 Back
Next
Previous View
s o C I A L
f A C t o r s
3 Letter From Our CEO overvIew
5 Corporate Prole
Pig Icli thgh tchlgy
9 Strategy and Management Approach
In many cases, simply providing access to technology can change the outlook for girls and women. Nancy, a girl from inner-city Boston, visited an Intel Computer Clubhouse for the rst time when she was 12. The Intel Computer Clubhouse Network is Network is a community-based, after-school education program operated by the Boston Museum of Science in collaboration with the MIT Media Lab. Computer Clubhouses offer an environment of trust and respect where young people can develop technological uency and collaborative work skills.
GovernAnCe And eConomIC fACtors
20 Financial Performance and Economic Impact Impac t 25 Governance, Ethics, and Public Policy Polic y envIronmentAL fACtors
32 32 Environment Environment soCIAL fACtors
58 58 Workplace Workplace 79 79 Supply Supply Chain Chain 92 Cibi sciy sci y Our Approach KeY Issues & PrIorItIes
Education Transform Transformation ation Community Engagement and Employee Volunteerism Entrepreneurship and Social Innovation > Empowering Girls and Women
Nancy’s Computer Clubhouse experience inspired her to go on to college, studying computer interactions at the University of Michigan. “The Clubhouse was an escape from the turmoil of my foster homes,” Nancy said. “I never guessed that those fun things would turn into skills that would help me be a creative thinker.” One hundred Intel-powered PCs are being deployed in Computer Clubhouses throughout Asia, operated by the Social and Financial Empowerment of Adolescents (SOFEA) project. For 95% of the girls in this program, the centers provide their rst exposure to a PC. The technology, business, and nancial skills that the girls are acquiring will help them overcome inequalities due to early marriage, war, domestic violence, and other problems.
Performance Summary & Goals APPendIx
11 1 11 About This Report/Approach to Assurance Assurance 112 1 12 GRI GRI Content Index Index 119 1 19 UN Global Compact— Communication on Progress Progress
Aacig ecic Ipc Just as technology technology removes removes walls ar around ound the classroom, assroom, entre entrepreneuri preneurial al skills can remove walls around women’s lives. An Intel Foundation grant led to the opening of the Intel Udyogini School of Entrepreneurship, where 3,600 tribal women in insurgency-hit areas of India have received business management training. Some of the women developed businesses that collect and extract lacquer from insects, and then sell it to industry in the region, resulting in economic empowerment for the women. In Bangladesh, a group of women called the “Info Ladies” take Intel-
farmer call an expert to learn how to save his diseased fruit tree, enabling a mother to nd out what medicine her sick daughters need, and allowing a man to chat with his cancer-stricken father on the other side of the world.
Cllabaig Ipac A new global initiative entitled “10X10: Connect the Dots, Educate Girls, Change the World” was unveiled at the Clinton Global Initiative Annual Meeting in September 2010. Intel is proud to be the founding corporate sponsor of the 10x10 initiative, which consists of a documentary lm and social action campaign dedicated to addressing the plight of girls around the world. The upcoming movie (to be released in 2012) tells the inspiring stories of 10 girls from 10 countries, shining a light on the importance of education and what successful girls can accomplish for their families, communities, and countries. Another initiative, TechWomen, was developed by the U.S. State Department in 2010 as part of U.S. President Barack Obama’s vision of greater collaboration between the U.S. and communities with predominantly Muslim populations. TechWomen is a professional mentorship and exchange program that will identify women who are emerging leaders in technical elds in Muslim communities and bring them to the U.S. in the summer of 2011 for a ve-week, project-based mentoring program at leading technology companies in Silicon Valley, including Intel. Goals of the program include strengthening participants’ professional capacity, expanding and diversifying networks of technology professionals in the Middle East and North Africa, and expanding girls’ interest in tech-based careers by exposing them to women role models in the technology eld.
“ There is overwhelming evidence that investing in adolescent girls in the developing world creates transformative change for families, communities,
Access the Report Builder 2010 2010 Corporate Responsibility Report www.intel.com/go/responsibility
powered classmate PCs with mobile phones and digital cameras to remote villages, giving these communities their only telephone and Internet access. The Info Ladies earn a living while performing services such as helping a
and entire countries.”
Shelly Esque, Vice President, Intel Corporate Affairs; President, Intel Foundation
108 Back
Next
Previous View
s o C I A L
f A C t o r s
3 Letter From Our CEO overvIew
5 Corporate Prole 9 Strategy and Management Approach GovernAnCe And eConomIC fACtors
20 Financial Performance and Economic Impact Impac t 25 Governance, Ethics, and Public Policy Polic y
Performance Summary and Goals In 2010, we surpassed the milestones of 9 million teachers trained through the Intel® Teach Program and 1.4 million learners reached through the Intel Learn® Program. We broadened the reach of our learning and teacher development programs, and expanded our role as an advocate for improved science, technology, engineering, and math education—especially for girls and women and under-represented minorities. Our employees continued to inspire us, with 48% volunteering over 1 million hours and sharing their skills to develop and implement innovative projects that benet schools and communities. We also combined our passion for innovation with our technology to support social innovation and entrepreneurship programs, competitions, and partnerships that lead to the creation of shared value. sciy Gal a P ac
envIronmentAL fACtors
32 32 Environment Environment soCIAL fACtors
58 58 Workplace Workplace 79 79 Supply Supply Chain Chain
2010 Gal
2010 Pac
Enable teachers to prepare students with 21 21st st century skills by training 10 million teachers by 2011 2011 through the Intel® Teach Program and expanding our portfolio of program options to meet local needs.
At the end of December 2010, 2010, we had trained 9 million teachers and are on track to reach our 10 million teacher goal in 2011. 2011. We successfully rolled out our new Intel® Teach Elements program, reaching 263,000 teachers.
92 Cibi sciy sci y Our Approach KeY Issues & PrIorItIes
Education Transform Transformation ation Community Engagement and Employee Volunteerism Entrepreneurship and Social Innovation Empowering Girls and Women > Performance Summary & Goals APPendIx
11 1 11 About This Report/Approach to Assurance Assurance 112 1 12 GRI GRI Content Index Index 119 1 19 UN Global Compact— Communication on Progress Progress
Reach an additional 250,000 learners in 201 2010 0 through the Intel® Learn Program. Extend the program by adding a new curriculu m unit, Intel® Learn Technology and Entrepreneurship.
We exceeded our goal, reaching approximately 400,000 additional learners in 2010 and successfully launching the new entrepreneurship curriculum.
By 2011, 2011, reach our goal of 100,000 PC donations to s chools in emerging markets to improve teaching and learning through ICT us e.
We achieved this goal in February 2011, 2011, completing the donation of 100,000 PCs.
Ma int ain ain at lea lea sstt a 40 40% % emplo mployy ee ee vo volu lunt ntee eeri rism s m rat rate glob lob all ally.
Ach Ach ieve vedd 48% 48% vo volu lunt ntee eerr rat rate globa o ba llyy a nd nd ov over er 1 millllion i on volunteer hours.
Continue to engage employees in high-impact, skills-based volunteering opportunities: launch one business group pilot project and integrate skills-based volunteering information into our career development course.
We continued to expand skills-based opportunities for our employees, including business group projects and integration of information into career development resources.
Achi
Paially Achi
n m
In 2011, Intel and the Intel Foundation will continue to expand and support the development of our education programs, reaching more teachers and young people around the world. We will also continue to place a high importance on collaboration with governments and other stakeholders to support systemic change in education, entrepreneurship, and social innovation. We will roll out a comprehensive new employee engagement communications campaign to engage even more employees in our Intel Involved program, including a focus on developing more opportunities to support girls and women.
sciy Gal 2011
Access the Report Builder 2010 2010 Corporate Responsibility Report www.intel.com/go/responsibility
Enable teachers to prepare students with 21 21st st century skills by training 10 million teachers by the end of 2011 through the Intel Teach Program and expanding ou r portfolio of program options to meet local needs. Maintain at least a 40% employee volunteerism rate globally and continue to engage employees in skills-based volunteering ac tivities.
109 Back
Next
Previous View
3 Letter From Our CEO overvIew
5 Corporate Prole 9 Strategy and Management Approach GovernAnCe And eConomIC fACtors
20 Financial Performance and Economic Impact Impac t 25 Governance, Ethics, and Public Policy Polic y envIronmentAL fACtors
32 32 Environment Environment soCIAL fACtors
58 58 Workplace Workplace 79 79 Supply Supply Chain Chain 92 Contributions to Society Societ y APPendIx
11 1 11 About This Report/Approach to Assurance Assurance 112 1 12 GRI GRI Content Index Index 119 1 19 UN Global Compact— Communication on Progress Progress
Appendix
Access the Report Builder 2010 2010 Corporate Responsibility Report www.intel.com/go/responsibility 110 Back
Next
Previous View
A B o u t
About This Report rp scp a Pl With the Intel 2010 Corporate Responsibility Report, we aim to provide stakeholders with a balanced view of our corporate responsibility strategy and performance for Intel’s worldwide operations during scal year 2010 (ended December 25, 2010). Our previous report was published in May 2010. We prepared this report using the Global Reporting Initiative* (GRI) G3.1 Sustainability Reporting Guidelines, and self-declare the report to the GRI Application Level A. A GRI Content Index is Index is provided in this appendix. Additional information about Intel’s operations and nancial statements is available in our 2010 Annual Report and Form 10-K. 10-K . We produce our Corporate Responsibility Report in Portable Document Format (PDF). A printed executive summary of the report is available by request, and an electronic version is available on our Report Builder web site. Our sites around the world translate and customize the content of the executive summary for local stakeholders. For a high-level overview of Intel’s corporate responsibility, supporting documents, past reports, and our customized Report Builder tool, Builder tool, visit our Corporate Responsibility Report web Report web site. Our Corporate Responsibility Report does not include performance information for Intel’s joint ventures or rms included in Intel Capital’s investment portfolio, unless specied. In addition, environmental and social performance data does not include data from our wholly owned subsidiaries, Wind River Software Group or McAfee (the latter was acquired in the rst quarter of 2011). This year’s report does not reect any signicant changes in reporting scope compared to our previous report. Principles and policies apply to all ofcers and employees of Intel and its subsidiaries, unless otherwise noted. Environmental, health, and safety data includes widely accepted parameters and units. Financial data is presented in U.S. dollars. References to “Intel” throughout this document pertain to Intel Corporation. Intel Foundation is a separate entity. Corporate-wide emissions are calculated using the Climate Leaders Greenhouse Gas (GHG) Inventory Guidance, which denes how U.S. Environmental Protection Agency (EPA) Climate Leaders partner companies account for and report their GHG emissions. This Guidance is based on the existing GHG Protocol Corporate Accounting and Reporting Standard developed by the
t H I s
r e P o r t
Send questions, comments, or feedback to Suzanne Fallender, Director of CSR Strategy and Communications, or Michael M. Jacobson, Director of Corporate Responsibility, Intel Corporation, 5000 W. Chandler Blvd., CH7-301, Chandler, AZ 85226 USA. You can also use our web-based feedback form or form or the CSR@Intel blog blog to to contact our Corporate Responsibility team.
Approach to Report Assurance The information in our Corporate Responsibility Report is subject to internal reviews and, for selected content, external reviews. On a regular basis, we validate the management systems and processes used to collect the data. We have maintained a multi-site ISO 14001 certication for our manufacturing locations since 2001, which requires independent third-party audits at many of our sites each year. Intel Ireland is also accredited to the IS 393 Energy Management Standard certication. As a member of the EPA Climate Leaders program over the past few years, our GHG emissions data has been reviewed against the Climate Leaders GHG Inventory Guidance, which includes reviews of our emissions inventory data and our progress in reaching our GHG emissions goal. Even though the Climate Leaders program concluded in 2010, our third-party verication partner, WSP Environment and Energy, on behalf of the EPA, is completing an independent review of our 2010 data. Our intention is to continue to secure third-party verication for our future emissions reporting. Our operations in Ireland are covered by the European Union Emissions Trading Scheme. For our 2004–2007 reports, we worked with a team of MBA students, under the guidance of a professor, to procure external assurance, using the AA1000 Materiality standard. Based on stakeholder feedback received during our outreach efforts and our analysis of the costs and benets of available external assurance options, we did not complete assurance for our 2008 or 2009 reports beyond the data verication and external review measures outlined above. In 2010, we continued to evaluate trends in assurance and other external verication measures, as well as input from our stakeholders. Based on this review, we plan to engage a third party to complete a “pre-assurance” review of our 2010 report following publication, and use the results to help us prepare for our 2011 report assurance process. We invite readers to provide feedback on this topic to inform our assurance strategy for the 2011 report.
World Resources Institute and the World Business Council for Sustainable Development.
111
Intel 2010 Corporate Responsibility Report Back
Next
Previous View
G r I
C o n t e n t
I n d e x
GRI Content Index This GRI Content Index is provided to assist readers in understanding how our report aligns with the Global Reporting Initiative* (GRI) G3.1 Sustainability Guidelines. This index includes all “Core” indicators as well as a number of “Additional” indicators that we have determined are relevant to our business. We self-declare this report at the “A” level. For more information about the GRI guidelines and application levels, visit the GRI web GRI web site. GrI C I (continued) Iica nb a dcipi
sa
rp sci()
Pag()
eplaay n
Letter From Our CEO; Strategy and Management Approach (Strategy (Strategy))
3, 9
2.1–2.9 Name of the organization; Primary brands, products, and/or services; Operational structure of the organization; Location of headquarters; Nature of ownership; Markets served; Scale of reporting o rganization; Signicant changes during the reporting period.
Corporate Prole; Financial Performance and Economic Impact (FP&EI)
5, 21
2.10 Awards received in the reporting period.
Strategy
19
3.1–3.4 Reporting period; Date of most recent previous report; Reporting cycle; Contact point for questions regarding the report or its contents.
About This Report
111
3.5 Process for dening report content.
Strategy
12
the report; Limitations on subsidiaries, scope and/oretc. report 3.6–3.8 Boundary boundary; Basis forofreporting on joint ventures,
About This Report
111
3.9 Data measurement techniques and the bases of calculations.
Environment; About This Report
33, 33, 111
Additional information provided in discussion of indicators throughout the report.
3.10–3.11 Explanation of the effect of any restatements of information provided in earlier reports; Signicant changes from previous reporting periods.
About This Report and individual indicator descriptions
111
No major changes. Some environmental and safety gures have been adjusted. The majority reect minor changes that occur when new information is received after the close of the data collection period. See also 2010 2010 Annual Report and Form 10-K.
3.12 Table identifying the location of standard disclosures in the report.
GRI Index
112
3.13 Policy and cu rrent practice with regard to seeking external assurance for the report.
About This Report
111
1. sagy a Aalyi 1.1–1.2 Statement from the most senior decision maker; Desc ription of key impacts, risks, and opportunities.
2. ogaizai Pl Additional detail available in 2 201 010 0 Annual Report and Form 10-K. 10-K.
3. rp Paa
C i h rp
Paially C i h rp
n C i h rp
(continues on next page)
112
Intel 2010 Corporate Responsibility Report Back
Next
Previous View
G r I
C o n t e n t
I n d e x
GrI C I (continued) Iica nb a dcipi
sa
rp sci()
Pag()
eplaay n
4.1–4.4 Governance structure of the organization, including committees under the highest governance body; Indication of whether the chair of the highest governance body is also an executive ofcer; Number of members of the highest governance body that are independent and/or non- executive members.
Strategy; Governance, Ethics, and Public Policy (GE&PP); Workplace
11, 26, 26, 69
Additional information on Board committees and composition available in 2011 Proxy 2011 Proxy Statement (p Statement (p 13).
4.5 Linkage between compensation for members of the highest governance body, senior managers, and executives, and the organization’s performance.
Environment; Workplace
35, 35, 70
For additional details on our approach to linking pay and performance, see 2011 Proxy 2011 Proxy Statement Statement (p (p 24).
4.6 Processes in place for the highest governance body to ensure that conicts of interest are avoided.
GE&PP
26
Additional information provided in 2011 2011 Proxy Statement (p Statement (p 16).
Process for determining the qualications and expertise of the 4.7 members of the highest governance body on economic, environmental, and social (EE&S) topics.
GE&PP
26
Information on process for selecting new directors included in our 2011 Proxy 2011 Proxy Statement Statement (p (p 7). A number of directors have expertise in strategic CSR areas of education (Yeary), environment (Hundt), and corporate governance (Yofe).
4.8 Internally developed statements of mission or values, co des of conduct, and principles.
Strategy; GE&PP; Environment; Supply Chain
10, 10, 27, 27, 34, 34, 81
See also Governance and Ethics Ethics web web site.
4.9 Procedures of the highest governance body for overseeing the organization’s identication and management of EE&S performance.
Strategy; GE&PP
11, 27, 27, 31
See also the charter of the Co rporate Governance and Nominating Committee on our Governance and Ethics Ethics web web site.
4.10 Processes for evaluating the highest governance body’s own performance, particularly with respect to EE&S performance.
GE&PP
26
Additional information provided in 2011 2011 Proxy Statement (p10). Statement (p10).
4.11 Explanation of whether and how the precautionary approach or principle is addressed by the organization.
Environment
33
Reference also included in Intel Code of Conduct Conduct..
4.12. Externally developed EE&S charters, principles su bscribed to.
Strategy; Environment; Supply Chain
10, 10, 34, 34, 81, 81, 119
Specic charters/principles covered in specic sections of the report by topic.
4.13 Memberships in associations and/or advocacy organizations.
GE&PP; Environment; Workplace; Supply Chain; Contributions to Society (Society)
31, 31, 42, 42, 67, 67, 82, 82, 87, 87, 99, 99, 106
Memberships covered in multiple sections of report. A list of our major trade association memberships is available on our Report Builder web Builder web site.
4.14–4.17 List of stakeholder groups engaged by the organization; Basis for identication and selection of stakeholders; Approaches to stakeholder engagement; Key topics and concerns that have been raised through
Strategy
12
4. Gac, Ci, a egag
stakeholder engagement and how the organization has responded to those key topics and concerns, including through its reporting.
C i h rp
Paially C i h rp
n C i h rp
(continues on next page)
113
Intel 2010 Corporate Responsibility Report Back
Next
Previous View
G r I
C o n t e n t
I n d e x
GrI C I (continued) Iica nb a dcipi
sa
rp sci()
Pag()
eplaay n
Management Approach Disclosures: Economic
Letter from Our CEO; Strategy; Strateg y; FP&EI
3, 10, 10, 21
Additional information included in 2010 2010 Annual Report and For m 10-K 10-K..
EC1 Direct economic value generated and distributed. (Core)
FP&EI; GE&PP; Society
21, 21, 23, 93
Additional information in 2010 2010 Annual Report and F orm 10-K 10-K (p (p 23).
EC2 Financial implications and other risks and opportunities for the organization’s activities due to climate change. (Core)
Strategy; Environment
16, 16, 36
Climate change risk also covered in 2010 2010 Annual Report and F orm 10-K 10-K (p (p 19).
EC3 Coverage of the organization’s dened benet plan obligations. (Core)
Workplace
71
Additional information available in 2010 2010 Annual Report and Form 10-K 10-K (p (p 82).
EC4 Signicant nancial assistance received from government. (Core)
FP&EI
22
The company’s primary use of incentives and grants is for construction of new facilities. These activities are managed on a local level in the location where they are built, and information is usually disclosed by the govern-
5a. ecic Pac Iica
ment/municipality. Additional details on our tax rate and credits are available in 2010 2010 Annual Report an d Form 10-K 10-K (p (p 38).
EC6 Policy, practices, and proportion of spending on locally based suppliers at signicant locations of operation. (Core)
FP&EI; Supply Chain
23, 23, 80, 80, 87
Breakdown of spends by region, information on s upplier diversity programs provided.
EC7 Procedures for local hiring and proportion of senior management hired from the local community at signicant locations of operation. (Core)
Workplace
61, 61, 66
Our recruiting practices are designed to be inclusive, and we hire from the diverse populations and commu nities where we operate. A majority of senior management at our global sites are lo cal hires.
EC8 Development and impact of infrastructure investments and services provided primarily for public benet through commercial, in-kind, o r pro bono engagement. (Core)
Society
93
describing signicant indirect economic impacts, EC9 Understanding including the extentand of impacts. (Additional)
FP&EI
23
Management Approach Disclosures: Environment
Strategy; Environment
11, 34
EN1 Materials used by weight or vo lume. (Core)
Environment; Supply Chain
33, 33, 80
Our systems are not designed to calculate in totality materials in this way. See our Making Silicon Chips Chips web web site for a detailed description of the manufacturing manufac turing process and materials used.
EN2 Percentage of materials used that are recycled input materials. (Core)
Environment
52, 52, 88
Given the complexity and size of ou r products, calculation of percentage of recycled content is not applicable; more signicant are our efforts to design out materials such as lead and halogens .
5b. eial Pac Iica
C i h rp
Paially C i h rp
n C i h rp
(continues on next page)
114
Intel 2010 Corporate Responsibility Report Back
Next
Previous View
G r I
C o n t e n t
I n d e x
GrI C I (continued) Iica nb a dcipi
sa
rp sci()
Pag()
EN3 Direct energy consumption by primary energy source. (Core)
Environment
39
EN4 Indirect energy consumption by primary s ource. (Core)
Environment
39, 39, 41
EN5–EN7 Energy saved due to conservation and efciency improvements. (Additional); Initiatives to provide energy-efcient or renewable energy-based products and services. (Additional); Initiatives to reduce indirect energy consumption and reductions achieved. (Additional)
Environment
39
EN8–EN10 Total water withdrawal by source. (Core); Water so urces signicantly affected by withdrawal of water. (Additional); Percentage and total volume of water recycled and reused. (Additional)
Environment
43, 47
EN11–EN12 Location and size of land owned, leased, managed in, or
Corporate Prole;
8, 36
adjacent to protected areas and areas of high biodiversity value. (Core);on Description of signicant impacts on activities, products, and services biodiversity in protected areas and areas of high biodiversity value. (Core)
Environment
EN16–EN18 Total direct and indirect greenhouse gas emissions by weight. (Core); Other relevant indirect greenhouse gas emissio ns by weight (Core); Initiatives to reduce greenhouse gas emissions, and reduc tions achieved. (Additional)
Environment
eplaay n
Data not tracked in this format. Our purchased energy is from multiple public utilities, which include a mix of energy sources. See also Intel’s CDP CDP ling. ling.
Major locations and manufacturing sites listed in this report, and owned and leased facilities listed in the 2010 2010 Annual Report and For m 10-K 10-K (p (p 20).
36, 36, 38
EN19 Emissions of ozone-depleting substances by weight. (Core)
Environment
50
EN20 NOx, SOx, and other signicant air emissions by type and weight. (Core)
Environment
50
EN21 Total water discharge by quality and destination. (Core)
Environment
43, 47
Additional information available in SARA Title III Reportable Chemicals by Site.
EN22 Total weight of waste by type and disposal m ethod. (Core) EN23 Total number and volume of signicant spills. (Core)
Environment Environment
48 56
No major spills reported in 2010. Other non-compliance issues repor ted.
EN26 Initiatives to mitigate environmental impacts of products and services, and extent of impac t mitigation. (Core)
Environment
51
EN27 Percentage of products sold and their packaging materials that are reclaimed by category. (Core)
Environment; Supply Chain
52, 52, 89
EN28 Monetary value of signicant nes and total number of nonmonetary sanctions for non-compliance with environmental laws and regulations. (Core)
Environment
56
Intel does not have data collection processes to track, record, and report this information in this way. However, an estimated 75% of our packaging material is reusable/recyclable reusable/recyclable..
C i h rp
Paially C i h rp
n C i h rp
(continues on next page)
115
Intel 2010 Corporate Responsibility Report Back
Next
Previous View
G r I
C o n t e n t
I n d e x
GrI C I (continued) Iica nb a dcipi
sa
rp sci()
Pag()
eplaay n
EN29 Signicant environmental impacts of transporting products and
Environment;
38, 38, 88
CO2 emissions of logistics and supply chain and percentage of total CO2
other goods and materials used for the organization’s operations, and transporting members of the workforce. (Additional)
Supply Chain
emissions are estimated, and we are developing tools to help improve measurement and tracking of our impact in this area.
5c. scial Pac Iica: Lab Pacic Management Approach Disclosures: Labor Practices
Strategy; Workplace; Supply Chain
11, 59, 59, 82
LA1–LA2 Total workforce by employment type, employment contrac t, and region. (Core); Total number and rate of employee turnover. (Core)
Workplace
61, 61, 62
Information provided on turnover by region and type. Other turnover information is not provided since it is deemed proprietary.
LA3 Benets provided to full-time employees that are not provided to temporary or part-time employees, by major operations. (Additional)
Workplace
70
Part-time and contract employees have similar access to health and retirement benets as full-time employees. Benets related to life insurance, vacation, and tuition reimbursement are prorated for par t-tim mee employees. Contract are notincentive eligible for a number of benets, including long-termemployees disability, equity plan, and tuition reimbursement. Part-time and contract employees are not eligible for sabbatical benet.
LA4 Percentage of employees covered by collective bargaining agreements. (Core)
The percentage is zero.
LA5 Minimum notice period(s) regarding signicant operational changes, including whether it is specied in collec tive agreements. (Core)
Workplace
12, 12, 65
LA7 Rates of injury, occupational diseases, los t days, and absenteeism,
Workplace
75
Workplace
76
LA10–LA11 Average hours of training per year per employee, by employee category. (Core); Programs for skills management and lifelong learning that support continued employability. (Additional)
Workplace
64
LA12 Percentage of employees receiving regular performance and career development reviews. (Additional)
Workplace
63
LA13 Composition of governan ce bodies and breakdown of employees by category according to gender, age group, minority group membership, and
Workplace
69
and number of work-related fatalities by region. (Core) LA8 Education, training, counseling, prevention, and risk control programs in place to assist workforce members, their families, or community members regarding serious diseases. (Core)
We provide advance notice in accordance with local requirements in the different locations where we operate. We also have regular quarterly meetings with all employees via webcast and provide information on business changes as so on as possible and take steps to mitigate negative impacts. We do not have collective agreements.
other indicators of diversity. (Core)
C i h rp
Paially C i h rp
n C i h rp
(continues on next page)
116
Intel 2010 Corporate Responsibility Report Back
Next
Previous View
G r I
C o n t e n t
I n d e x
GrI C I (continued) Iica nb a dcipi
sa
rp sci()
Pag()
eplaay n
LA14 Ratio of basic salary of men to women by employee category. (Core)
Workplace
69
Overall ratio not reported, due to information deemed proprietary, but break-
LA15 Return to work and retention rates after parental leave. (Core)
Workplace
72
Management Approach Disclosures: Human Rights
Strategy; GE&PP; Supply Chain
10, 27, 27, 81
HR1 Percentage and total number of signicant investment agreements that include human rights clauses o r that have undergone human rights screening. (Core)
Supply Chain
82, 82, 84
HR2 Percentage of signicant suppliers and contractors that have undergone screening on human rights and actions taken. (Core)
Supply Chain
84
HR3 Total hours of employee training on policies and procedures co ncerning aspects of hu man rights that are relevant to operations, including the percentage of employees trained. (Additional)
GE&PP; Supply Chain
27, 27, 83
down of top 50 in senior management reported in terms of compensation.
5. scial Pac Iica: Ha righ
Our comprehensive site selection process evaluates several criteria, including human and labor rights considerations. Supplier contracts also include requirements.
Training on Intel Code of Conduct Conduct and and other policies and procedures is mandatory for every Intel employee and includes content on human rights. Results, while compiled for internal review and action, are not currently publicly reported since this information is deemed proprietary. Information on approach to diversity and ethics an d compliance reported.
HR4 Total number of incidents of discrimination and action s taken. (Core)
HR5–HR7 Operations identied in which the right to exercise freedom of association and collective bargaining may be at signicant risk, and actions taken to support these rights. (Core); Operations identied as having signicant risk for incidents of child labor, or forced or compulsory labor, and measures taken to contribute to the elimination of child labor. (Core)
GE&PP; Supply Chain
27
HR10–HR11 Percentage and total number of operations that have been subject to human rights assessments and number of grievances resolved. (Core)
GE&PP; Workplace; Supply Chain
27, 27, 66, 66, 85
Management Approach Disclosures: Society
Society
93
SO1 Nature, scope, and effectiveness of any programs and practices that assess and manage the impacts of operations on communities, including entering, operating, and exiting. (Core)
Strategy; Strateg y; So ciety
12, 93
SO2–SO3 Percentage and total number of business units analyzed for
GE&PP
27
5. scial Pac Iica: sciy
We operate in a number of cou ntries identied by stakeholders as being at higher risk for labor concerns. We conduct regular Intel Code of Conduct Conduct training, and have Intel Human Rights Principles Principles in in place. We have not identied any operations with signicant risk for child labor or forced or compulsory labor.
risks related to corruption. (Core); Percentage of employees trained in organization’s anti-corruption policies and procedures. (Core)
C i h rp
Paially C i h rp
n C i h rp
(continues on next page)
117
Intel 2010 Corporate Responsibility Report Back
Next
Previous View
G r I
C o n t e n t
I n d e x
GrI C I (continued) Iica nb a dcipi
sa
SO4 Actions taken in response to incidents of corruption. (Core)
rp sci()
Pag()
eplaay n
GE&PP
27
Data reported on anti-corruption training and assessment processes. Summary types of ndings from our ECOC and typical actions taken also provided. We do not provide detailed information on specic ac tions taken since this information is deemed to be proprietary.
SO5–SO6 Public policy positions and participation in public policy development and lobbying. (Core); Total Total value of nancial and in-kind contributions to political parties, politicians, and related institutions by country. (Additional)
GE&PP
29, 29, 31
SO7–SO8 Total number of legal actions for anti-competitive behavior, antitrust, and monopoly practices and their outcomes. (Additional); Monetary value of signicant nes and total number of non-monetary sanctions. (Core)
GE&PP
28
SO9–SO10 Operations with signicant potential or actual impact on local communities and prevention/mitigation activities. (Core)
Strategy; Environment; Society
12, 36, 36, 93
Management Approach Disclosures: Product Responsibility
Environment
33, 33, 51
Product responsibility topics span multiple sections of the report, from environment to health and safety.
PR1 Life-cycle stages in which health and safety impacts of products and services are assessed for improvement. (Core)
Environment
33
For more information, refer to Intel Quality System Handbook.
PR3 Type of product and service information required by procedure, and percentage subject to such requirements. (Core)
Environment
51
We also provide our customers with information on the energy efciency of our products through products through our web site and publications on our web site.
See also Competition in the Innovation Economy Economy web web site and 2010 2010 Annual Report an d Form 10-K 10-K (p (p 98).
5. scial Pac Iica: Pc rpibiliy
Zero incidents in 2010. 2010.
PR4 Total number of incidents of non-compliance with regulations and voluntary codes concerning product and service information and labeling, by type of outcome. (Additional)
PR5 Practices related to customer satisfaction, including results of surveys measuring customer satisfaction. (Additional)
Strategy; Workplace
13, 13, 71
For more information, refer to Intel Quality System Handbook.
PR6 Programs for adherence to laws, standards, and voluntary codes related to marketing communications, including advertising. (Core)
GE&PP
27
Covered in Intel Code of Conduct.
PR8 Total number of substantiated complaints regarding breaches of customer privacy and losses of customer data. (Additional)
Information on Intel’s privacy policy available on our Security and Privacy Privacy web site.
PR9 Monetary value of signicant nes for non-compliance with laws and regulations concerning the provision and use of products and services. (Core)
Information on legal proceedings included in 2010 2010 Annual Report and Form 10-K (p 10-K (p 98).
C i h rp
Paially C i h rp
n C i h rp
118
Intel 2010 Corporate Responsibility Report Back
Next
Previous View
u n
G L o B A L
C o m P A C t
C o P
United Nations Global Compact—Communication on Progress 2010 2010 In June 2009, Intel became a member of the United Nations Global Compact (UNGC), a platform for encouraging and promoting good corporate principles and learning experiences in the areas of human rights, labor, environment, and anti-corruption. The UNGC principles have been engrained in our approach to corporate responsibility and business practices for many years. As part of our commitment to the UNGC, we have mapped the principles with the relevant discussions in the report, which detail our actions and progress made against the principles during 2010, including our work with other organizations in these areas. In addition to our commitment to promote the UNGC principles in our operations, Intel will continue to support the UNGC in its work to expand country networks. unGC Cicai Pg Ha righ Principle 1
Support and respect the protection of internationally proclaimed human rights.
Principle 2
Make sure that business is not complicit in
Lab
Intel’s commitment to respect human rights is embodied in the Intel Code of Conduct, Conduct, Intel Human Rights Principles Principles,, and Intel Water Policy,, the latter of which covers our respect fo r the human right to water. In addition, the topic of human rights is covered in the Policy Electronic Industry Code of Conduct, Conduct, adopted by Intel in 2004. For a discus sion of our approach to respecting human rights and the steps we have taken during 2010, see the Governance, Ethics, and Public Policy and Policy and Supply Chain sections Chain sections of this report.
human rights abuses.
Principle 3
Uphold freedom of association and the effective recognition of the right to collective bargaining.
Principle 4
Support elimination of all forms of forced and compulsory labor.
Principle 5
Support effective abolition of child labor.
Principle 6
Elimination of discrimination in respect of employment and occupation.
Intel’s Human Rights Principles incorporate references to the key labor issues identied in the UNGC, including prohibition of child labor (Intel has established a minimum age of 16), forced labor, and discrimination. Intel recognizes that in many locations where we operate, employees have the right to freely associate or not associate with third-party labor organizations, along with the right to bargain or not bargain collectively in accordance with local laws. Intel respects those rights and is committed to creating an environment of o pen communication where employees can speak with their managers about their ideas, concerns, o r problems, and team together to address workplace issues. For more information, see the Governance, Ethics, and Public Policy, Policy, Workplace Workplace,, and Supply Chain Chain sections sections of this report.
ei Principle 7
Businesses are asked to support a precautionary approach to environmental challenges.
Principle 8
Undertake initiatives to promote greater environmental responsibility.
Principle 9
Encourage the development and diffusion of environmentally friendly technologies.
Intel co-founder Gordon Moore, a longtime champion of the environment, instilled a legacy of environ mental consciousness at Intel that continues today. We incorporate environmental performance goals throughout goals throughout our operations and regularly report on our progress, seeking continuous improvement in energy efciency, emissions reductions, resource conservation, and waste reduction. We strive to minimize the environmental impact of o ur products—from design through disposal—and we collaborate with others to develop innovative ways that technology can help address long-term sustainability challenges. For mo re information, see the Environment section Environment section of this report.
Ai-cpi Principle 10
Businesses should work against corruption in all its forms, including extortion and bribery.
Intel has set clear standards and policies and has put in place training to ensure employee compliance on these topics, including a reference in the Intel Code of Conduct Conduct.. We have a comprehensive Ethics and Compliance program, which is described in detail in the Governance, Ethics, and Public Policy section Policy section of this report. Depending on their role and geographical location, certain employees
are assigned more in-depth ethics and compliance training co urses, including thos e covering anti-corruption. Approximately 16,000 employees were trained on our anti-corruption po licies and procedures in 2010.
119
Intel 2010 Corporate Responsibility Report Back
Next
Previous View
For more information, visit www.intel.com/go/responsibility
