CSR Report 2009
CSR Report 2009
CSR Report 2009
Corporate
Responsibility
Report
At Intel, we never stop looking for bold ideas in technology,
business, manufacturing, and corporate responsibility.
In this report, we discuss our corporate responsibility performance during 2009, including
our strategic approach to key environmental, social, and governance indicators. This report
was prepared using the Global Reporting Initiative* (GRI) G3 guidelines, and we self-declare
the report at the GRI Application Level A.
L e tt e r f r o m o u r C EO
Corporate responsibility is about doing the right things right. Throughout Intel’s history, we have
focused on building an ethical culture, reducing our environmental impact, investing in our employees,
and engaging with our communities. Our approach has created value not only for our stakeholders and
society, but also for Intel. We have reduced costs through energy conservation investments, minimized
risk by proactively working with our communities and supply chain, and enhanced our reputation as a
leading corporate citizen by building trusted relationships around the world.
In 2009, we continued to invest in our corporate responsibility priorities, despite difficult eco- to partner with governments and educators to develop and implement programs that
nomic conditions. We completed a number of energy efficiency, water conservation, and solar combine technology, Internet connectivity, and training to improve teaching and learning
installation projects in our facilities, and Intel remained the largest purchaser of “green” power around the world.
in the U.S., according to the U.S. Environmental Protection Agency. To help drive accountability,
In 2009, we faced challenges related to antitrust allegations, including cases brought by
again this year a portion of all employees’ variable compensation was dependent upon Intel
the European Commission, the U.S. Federal Trade Commission, and the New York Attorney
achieving its environmental goals. We also became a member of the United Nations Global
General. We firmly believe that Intel has operated fairly and lawfully, and we are continuing
Compact and published new Human Rights Principles, reinforcing our commitment to leader-
to appeal and to make our arguments in a court of law.
ship in corporate responsibility.
We also faced challenges in reducing our water use and waste generation in 2009, but we
Corporate responsibility for Intel is also about innovation, as we apply our resources to
expect that the implementation of new technologies will enable us to improve our perfor-
address global challenges. In 2009, we launched the Intel Sponsors of Tomorrow™ marketing
mance in these areas so we can achieve our 2012 environmental goals.
campaign, which celebrates the accomplishments and contributions of Intel employees—
innovators in the truest sense of the word. I continue to be amazed by their relentless focus As you read this report, I hope that you will sense a continued progression, noting how we
on operational excellence, and their generosity in sharing their time and talent in our commu- are building on successes, further integrating corporate responsibility into our culture and
nities. Every day they are discovering new ways to bring about improvements in education, decision-making processes, and seeking new challenges to work on. We appreciate that our
the environment, and healthcare. leadership position—in both innovation and corporate responsibility—must be earned every
day. We welcome your feedback on this report, as well as suggestions for how we can drive
By improving the energy-efficient performance of our products, for example, our employ-
performance improvements and increase value for our stakeholders around the world.
ees are helping our customers and entire segments of the economy reduce energy use and
address climate change. We estimate that the conversion to the energy-efficient Intel® Core™
microarchitecture saved up to 26 terawatt-hours of electricity between 2006 and 2009,
compared to the technology it replaced. Our employees are also involved in initiatives to accel-
erate the integration of intelligent renewable energy sources, smart grids, and smart buildings. Paul S. Otellini
President and Chief Executive Officer
Innovation—and the economic development and competitiveness of countries—depend on
the availability of a workforce with a strong mastery of math and science and the skills to
apply knowledge in new ways. To inspire the next generation of innovators, Intel continues
C o n t e n t s
22 Economic Impact 93 Performance Summary & Goals The information contained here is
65 Compensation, Benefits, interactive. Use your mouse to roll over
and Work/Life Effectiveness select content to get more details.
24 Governance, Ethics, 94 Education
69 Health and Safety,
and Public Policy 95 Our Approach to Improving Recommended Software
and Employee Wellness
25 Governance and Ethics Education Worldwide • Adobe Acrobat,* Version 7.0 and above.
72 Performance Summary & Goals • QuickTime*
28 Public Policy and Advocacy 98 Inspiring Young Innovators
30 Political Accountability 100 Empowering Teachers
5.7135.123100
O v e r v i e w
90 64 2
Key Corporate Links
% % > Billion Intel 2009 Annual Report
and Form 10-K
Intel Investor Relations
Percentage of revenue at Percentage of wafer Number of
Intel Products
Access the Report Builder end of year from products manufacturing transistors on our
Technology Leadership
2009 Corporate Responsibility Report that did not exist at that takes place microprocessors
Innovation at Intel
www.intel.com/go/responsibility beginning of year at our sites in the U.S.
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9 80 6
109 GRI Content Index Key Corporate
116 UN Global Compact— > Responsibility Links
Communication on Progress
Corporate Responsibility at Intel
Intel Values
Number of years Intel Awards and Years that we have had
Awards and Recognitions
Access the Report Builder has published a corporate recognitions received for a Board committee
UN Global Compact
2009 Corporate Responsibility Report responsibility report our corporate responsibility with oversight for
Communication on Progress
www.intel.com/go/responsibility performance in 2009 corporate responsibility
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Awards and Recognitions Customer Excellence Program (CEP), a structured program that uses a web-based Objective customer feedback enables us to
survey administered by a third-party market research firm to obtain and prioritize identify areas for improvement. In 2009, employ-
Governance and
Ec o n o m ic Fact o r s
customer feedback on the quality of Intel’s products and services. A portion of Intel ees received two additional days of pay based
employees’ annual variable compensation is tied to CEP results. on the high customer satisfaction levels under
19 Financial Performance the CEP. For more information, refer to the
and Economic Impact Consumer Support web site. Intel Quality System Handbook.
24 Governance, Ethics,
External blogs, such as Technology@Intel, with discussions of interest to customers.
and Public Policy
E n v ir o n m e n tal Fact o r s
Suppliers
31 Environment Intel’s Supplier Site. Setting consistent expectations for our suppliers
reduces risk and improves efficiency across our
S o cial Fact o r s Intel Supplier Day conference, which brings together hundreds of our top suppliers supply chain. In this year’s report, based on stake-
53 Workplace for training. holder feedback and benchmarking research, we
73 Supply Chain Participation in the Electronic Industry Citizenship Coalition (EICC). have provided additional detail in the Supply Chain
82 Community section.
94 Education Communities
A pp e n d i x Community advisory panels and working groups, two-way forums where Maintaining an open dialogue with our com-
108 About This Report/Approach community members and Intel representatives collaborate to address community munities has allowed us to build positive and
to Assurance issues and concerns. Community perception surveys and needs assessments constructive relationships at the local level. For
109 GRI Content Index conducted as needed. more detail on how we use stakeholder feedback
to assess and manage our community impacts,
116 UN Global Compact— Intel Community web site, which includes feedback mechanisms. see the Community section of this report.
Communication on Progress
Placement of Intel employees on local nonprofit boards and commissions.
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24 Governance, Ethics, Active engagement in policy and legislative efforts worldwide through individual Our efforts in policy development foster credible,
and Public Policy discussions and exchanges with joint industry and government committees. trustworthy relationships; strengthen regard for
Intel as a valued corporate citizen; and create a
E n v ir o n m e n tal Fact o r s Intel Global Public Policy and Intel Corporate Affairs working with policy makers. supportive public policy environment. For more
31 Environment information, visit our Public Policy web site.
New Policy@Intel web site and blog.
S o cial Fact o r s
53 Workplace Non-Governmental Organizations (NGOs)
73 Supply Chain Issues meetings, formal dialogues and projects, and multi-sector efforts. Intel’s interactions with NGOs promote mutual
82 Community understanding on environmental issues, regional
education priorities, technology options and
94 Education
solutions for developing countries, supply chain
A pp e n d i x management issues, and other topics. Details on
108 About This Report/Approach our collaborations with NGOs in our main corporate
to Assurance responsibility focus areas are covered in other
sections of this report.
109 GRI Content Index
116 UN Global Compact—
Communication on Progress
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> Stakeholder Engagement • Employee blogs and • Climate change • Business continuity
High Reducing Financial/
forums • Water conservation • Impact to brand/ Energy Economic
Sustainability Trends: Key • Customer concerns reputation Use Health
• Air emissions/quality
Challenges and Opportunities • Corporate Responsi- • Applicability to
• Education
Performance Summary bility web site e-mails multiple regions
• Fair compensation Water Use Energy-
• Results of community • Alignment with Efficient
Corporate Responsibility advisory panels • Stock price
Intel’s business Products
performance
Goal Summary and community strategies
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S o cial Fact o r s Solid waste generated (tons) 44,484 83,822 58,746 60,917 54,634
53 Workplace
Solid waste recycled/reused 80% 88% 80% 74% 75%
73 Supply Chain
Social
82 Community
94 Education Workplace Employees at year end 79,800 83,900 86,300 94,100 99,900
Worldwide charitable giving (dollars in millions)2 $100 $102 $109 $96 $111
Charitable giving as percentage of pre-tax net income 1.8% 1.3% 1.2% 1.4% 0.9%
Access the Report Builder
Education Teachers trained through Intel® Teach Program (millions) 1.2 1.1 1.1 0.9 0.8
2009 Corporate Responsibility Report
www.intel.com/go/responsibility 1
Rate based on 100 employees working full time for one year. 2
Includes total giving (cash and in-kind) by Intel Corporation and Intel Foundation.
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$
5.7 80 $
1.4
Key Financial Performance
Billion % Billion and Economic Impact Links
Intel 2009 Annual Report
and Form 10-K
Amount invested in Percentage of Revenue from Intel Investor Relations
Access the Report Builder research and revenue generated Intel® Atom™ processors Intel Products
2009 Corporate Responsibility Report development in 2009 outside the Americas and associated chipsets
Technology Leadership
www.intel.com/go/responsibility in 2009
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G o v e r n a n c e a n d Ec o n o m ic Fact o r s
Dollars in Billions
26.5 26.8
and Economic Impact
We reported 2009 revenue of $35.1 billion, operating income of $5.7
> 2009 Financial Performance 20
billion, net income of $4.4 billion, and earnings per share of 77 cents. We
Economic Impact
generated more than $11 billion in cash from operations, and ended the
24 Governance, Ethics, 10
year with $13.9 billion in cash, short-term investments, and trading assets.
and Public Policy
Our cash dividend payout for 2009 totaled $3.1 billion.
E n v ir o n m e n tal Fact o r s
31 Environment Despite the worldwide economic recession, microprocessor unit shipments
00 01 02 03 04 05 06 07 08 09
S o cial Fact o r s for the PC industry were up 6% in 2009, according to Mercury Research—
53 Workplace illustrating how essential computing has become in our lives. As the year
73 Supply Chain progressed, we saw increasingly strong consumer market sales—fueled in
large part by the popularity of mobile computers, including easy-to-use, Geographic Breakdown of Revenue
82 Community
94 Education affordable Intel® Atom™ processor-based netbooks. Our revenue for Intel
100
A pp e n d i x
Atom processors and associated chipsets totaled $1.4 billion in 2009. 7% 9% 10%
108 About This Report/Approach Our 2009 results reflect the impact of a $1.45 billion fine that we incurred 80 15%
27% 23%
to Assurance
in May as a result of the European Commission conclusion that Intel had
109 GRI Content Index
violated competition laws in Europe. We strongly believe that the decision 60 20%
116 UN Global Compact—
Percent
was wrong and are appealing it. Our results were also affected by a 23%
Communication on Progress
$1.25 billion payment that we made in November to Advanced Micro 40 43%
particularly in the design and manufacture of integrated circuits. Research Japan Europe Americas Asia-Pacific
and development (R&D) expenditures in 2009 were $5.7 billion. Our capital
In 2009, 80% of our revenue was from outside the Americas, compared to
expenditures were $4.5 billion in 2009. 57% in 1999.
Dollars
0.32
> 2009 Financial Performance 10 0.30
9.2
Economic Impact
Dollars in Billions
24 Governance, Ethics, 8 0.15
7.7
and Public Policy 7.1
E n v ir o n m e n tal Fact o r s 6
5.7
31 Environment 2005 2006 2007 2008 2009
S o cial Fact o r s 4 3.9
53 Workplace
2.4
73 Supply Chain 2 2.0 2.2
Capital Additions to Property, Plant and Equipment
82 Community 1.3
Dollars in Billions
to Assurance
109 GRI Content Index 3.0
116 UN Global Compact—
Communication on Progress
Diluted Earnings Per Share 1.5
1.60
1.40
0.92
Dollars
0.86
0.80 0.77
For more information on our financial performance, products, customers,
0.40 technologies, opportunities, and key challenges, see the Intel 2009 Annual
Report and Form 10-K.
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G OVE R N A N C E A ND E C ONOM I C F A C T O R S
Dollars in Billions
and Economic Impact
We have periodically conducted local economic assessments to better
2009 Financial Performance 3.0
understand our impact on the communities where we operate. These
> Economic Impact
assessments have helped us demonstrate a net positive impact on
24 Governance, Ethics, 1.5
communities and have been important resources in discussions about
and Public Policy
long-term community viability with local stakeholders and governments.
E n v ir o n m e n tal Fact o r s
For examples of Intel’s impact on communities, read the case studies on
31 Environment 2005 2006 2007 2008 2009
Intel Oregon and Intel Costa Rica.
S o cial Fact o r s
53 Workplace In 2008, we commissioned IHS Global Insight to conduct an independent
73 Supply Chain study of Intel’s economic impact in the U.S. and Europe, including our direct
82 Community and indirect role in fueling economic growth, creating jobs, and enhancing
94 Education productivity across multiple industries. In the study, “The Economic Impact
A pp e n d i x
of Intel Corporation in the United States and European Union, 2001–2007,”
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G OVE R N A N C E A ND E C ONOM I C F A C T O R S
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G o v e r n a n c e a n d Ec o n o m ic Fact o r s
90 27 9
Key Governance Links
% % Intel Governance and Ethics
Intel Code of Conduct
Access the Report Builder Board made up of on our Board at the in which the Intel Public Policy
2009 Corporate Responsibility Report independent directors end of 2009 Intel Code of Conduct Competition in the Innovation
Economy
www.intel.com/go/responsibility is available
Political Accountability Guidelines
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G o v e r n a n c e a n d Ec o n o m ic Fact o r s
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G o v e r n a n c e a n d Ec o n o m ic Fact o r s
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G o v e r n a n c e a n d Ec o n o m ic Fact o r s
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G o v e r n a n c e a n d Ec o n o m ic Fact o r s
Access the Report Builder facilities. Through negotiations with the European Commission, we are
working with other U.S. companies to establish standards that will enable
2009 Corporate Responsibility Report
the exchange of electronic medical records across international borders.
www.intel.com/go/responsibility
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G o v e r n a n c e a n d Ec o n o m ic Fact o r s
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E n v ir o n m e n tal Fact o r s
K e y I s s u e s & P ri o riti e s
Climate Change and Energy
Efficiency
Water Conservation
Waste: Reduce, Reuse, Recycle
Reducing Air Emissions
Product Ecology
Performance Summary & Goals
S o cial Fact o r s
53 Workplace
73 Supply Chain
82 Community
Watch Video
94 Education
A pp e n d i x
108 About This Report/Approach
to Assurance
1 80 36
109 GRI Content Index
Key Environment Links
116 UN Global Compact—
Communication on Progress
% Billion Intel Environment Site
Product Energy Efficiency
Intel is the largest Percentage of our Gallons of water saved Technology for Environment
Access the Report Builder voluntary purchaser of solid waste since 1998 as a result Environmental, Health, and
Safety Policy
2009 Corporate Responsibility Report “green” power in the U.S., recycled in 2009 of our water conservation
Intel’s Climate Change Policy
www.intel.com/go/responsibility according to the U.S. EPA investments
Intel’s Water Policy
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E n v ir o n m e n tal Fact o r s
A pp e n d i x
108 About This Report/Approach 1
Applies only to halogenated flame retardants and polyvinyl chloride (PVC) in components. Halogens are below 900 parts per million (PPM) bromine and 900 PPM chlorine.
to Assurance 2
Lead is below 1,000 PPM per European Union (EU) Restriction of Hazardous Substances (RoHS) Directive of July 2006 (2002/95/EC, Annex A). Some RoHS exemptions for lead may apply to other
components used in the product packaging. 32nm products are manufactured on a lead-free process. Lead-free per EU RoHS Directive of July 2006 (2002/95/EC, Annex A).
109 GRI Content Index
116 UN Global Compact—
Communication on Progress
About Performance Graphs: Throughout this section, we have included graphs for some of the key indicators that we use to manage our environmental, health, and safety
performance. For close to 20 years, our senior managers have reviewed these indicators on a regular basis. We report our performance both in absolute terms and on the
basis of a “per unit of production” or “per chip” normalized production index (NPI). The NPI is derived directly from our worldwide wafer production and is indexed to a
baseline year of 1999 (NPI = 100 for baseline year 1999), with the exception of our greenhouse gas emissions and energy use indicators, which use a baseline year of 2000.
Access the Report Builder
With this direct correlation to Intel’s global manufacturing levels, the NPI enables year-to-year comparisons and supports trending comparisons. References to “per chip”
2009 Corporate Responsibility Report assume a typical chip size of 1 cm2, but actual chips vary in size depending on the specific product. In 2009, manufacturing output was significantly reduced to match lower
demand, a result of the worldwide economic downturn. Because of this, many of the normalized environmental indicators that we track saw steep increases in 2009, leading
www.intel.com/go/responsibility
to atypical results. As manufacturing volumes rise, it is expected that these normalized indicators will return to their historical ranges. Underlying data for the performance
graphs is available for download using the Report Builder on our Corporate Responsibility Report web site.
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E n v ir o n m e n tal Fact o r s
Watch Video to see videos on a number of our initiatives, visit our gram, an industry-government partnership working to develop strategies
Access the Report Builder
Technology for Environment web site. to reduce overall climate change. In conjunction with the program, Intel set
2009 Corporate Responsibility Report a goal to reduce our greenhouse gas emissions by 30% per unit of produc-
www.intel.com/go/responsibility
tion from 2004 through 2010. As of the end of 2009, we had reduced
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E n v ir o n m e n tal Fact o r s
Responsibility
Intel leads industry Intel founds Intel Open Energy Initiative.
Governance and initiative on PFC reduction with
Ec o n o m ic Fact o r s the first voluntary agreement
to reduce global-warming Intel becomes largest corporate purchaser of “green” power in the U.S. under U.S. EPA Green Power
19 Financial Performance gases. Intel starts public Partnership; sets new absolute emissions reduction goal; and founds Digital Energy Solutions Campaign.
reporting of total energy use.
and Economic Impact
24 Governance, Ethics, Intel establishes Intel joins U.S. EPA Climate Leaders
energy conservation program and commits to reduce per
and Public Policy goal: average 4% chip global-warming gases 30%
per year reduction from 2004 baseline by 2010.
E n v ir o n m e n tal Fact o r s on a per chip basis.
31 Environment Intel joins
Intel begins public PFC agreement adopted Intel begins CO2 emissions
Our Approach to Chicago Climate
environmental by World Semiconductor participating in are regulated at Exchange
Environmental Sustainability reporting. Council. Industry-wide Carbon Disclosure Ireland site; Intel and co-founds
goal set to reduce PFC Project. starts participating Climate Savers
K e y I s s u e s & P ri o riti e s emissions 10% below in European Union Computing
1995 baseline by 2010. trading program. Initiative.
> Climate Change and Energy
Efficiency
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Water Conservation
Waste: Reduce, Reuse, Recycle Ahead of the Curve Transparency and Disclosure Driving Industry-Wide
Continuous Improvement
Reducing Air Emissions
Product Ecology Since the mid-1990s, we have taken voluntary steps and set aggressive goals to reduce our greenhouse gas emissions.
Performance Summary & Goals
emissions more than 40% below 2004 levels on a per chip basis. In 2008, In 2009, we completed a research paper, “Developing an Overall CO2
S o cial Fact o r s
we set an additional goal to reduce the absolute global-warming gas foot- Footprint for Semiconductor Products,”1 published by the IEEE, to gain a
53 Workplace
print from our operations 20% below 2007 levels by 2012. As of the end better understanding of the Scope 3 impacts from our industry, including
73 Supply Chain
of 2009, we had reduced our absolute emissions more than 45% below embedded CO2 in the supply chain. The calculation of an overall CO2 foot-
82 Community
2007 levels. print still contains many limitations and uncertainties. In this research, we
94 Education
primarily focused on activities that directly support manufacturing opera-
A pp e n d i x Since 2007, Intel has been a member of the Chicago Climate Exchange,
tions, and did not include potential impacts from other support operations
108 About This Report/Approach North America’s only cap and trade system for six greenhouse gases.
to Assurance or assess the embedded CO2 impact from capital goods such as buildings
Members made a voluntary but legally binding commitment to reduce their
109 GRI Content Index or manufacturing equipment.
aggregate emissions by 6% by 2010 compared to a baseline of average
116 UN Global Compact— annual emissions from 1998 to 2001. Our research confirmed previous findings that the largest CO2 impact from
Communication on Progress
semiconductors comes from consumer use. Excluding product consumer
Intel has for many years reported its Scope 1 and 2 greenhouse gas emis-
use, semiconductor manufacturing has the greatest impact, accounting
sions publicly, but like many companies had an incomplete understanding
for approximately 60% of the CO2 impact, with the balance attributable
Access the Report Builder of Scope 3 emissions. Scope 1 and 2 emissions refer to direct emissions
to logistics, supply chain, and commute and business travel. For additional
from facilities and purchased electricity, respectively. Scope 3 emissions,
2009 Corporate Responsibility Report information about our ongoing work on understanding the carbon foot-
www.intel.com/go/responsibility according to internationally accepted protocols, are from sources not
print of our supply chain, see the Supply Chain section of this report.
directly attributable to a company’s manufacturing operations, but are
created indirectly as a result of its operations or the use of its products.
36
© 2009 IEEE. Reprinted, with permission.
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E n v ir o n m e n tal Fact o r s
Product Ecology to our corporate goal of reducing absolute greenhouse gas emissions
Performance Summary & Goals 3 90 20% by 2012.
S o cial Fact o r s
4.8
Finding efficient ways to support business growth and respond faster to
4.7 4.6
2 4.4 80
53 Workplace 4.2 business needs while enhancing services is critical for IT. Our long-term
73 Supply Chain data center strategy focuses on delivering innovative solutions to optimize
82 Community 1 70 server, storage, network, and facilities infrastructure that we project will
94 Education help us realize an estimated $650 million in savings by 2012.
A pp e n d i x
We also extended our videoconferencing capabilities, enabling Intel to cut
108 About This Report/Approach 2005 2006 2007 2008 2009
energy use and carbon emissions resulting from employee travel, saving
to Assurance
Natural Gas Electricity
an estimated $14 million and 43,156 travel hours in 2009.
109 GRI Content Index Diesel Energy Use—Normalized
To read more about our IT group’s efforts to reduce Intel’s
116 UN Global Compact—
Communication on Progress In 2009, energy use in our operations decreased 10% from 2008 on an absolute basis energy use, read the 2009 Intel IT Performance Report
and increased 29% on a per chip basis. The significant increase in the per chip figure Watch Video
and see the videos and case studies.
was due primarily to lower manufacturing levels.
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E n v ir o n m e n tal Fact o r s
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E n v ir o n m e n tal Fact o r s
Based on our estimated Scope 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 specific product.
1
Billions of Gallons
24 Governance, Ethics, 6 90
While our ultimate vision is to achieve the continuous reuse of water in
and Public Policy
semiconductor manufacturing, we currently discharge water from our
E n v ir o n m e n tal Fact o r s 4 80
operations in compliance with local permits. Discharge methods vary by
31 Environment site based on the needs of the community. We work with local water man-
Our Approach to agement agencies to determine solutions for each manufacturing location. 2 70
Environmental Sustainability
53 Workplace
73 Supply Chain Intel’s Water Footprint
82 Community
Mouse over diagram elements for
Evaporative Loss
94 Education additional information.
(Estimated)
A pp e n d i x
1.5 Billion
108 About This Report/Approach
to Assurance
Intel Operations 6.5 Billion
Water Supply 8 Billion Water Discharge
109 GRI Content Index (Scope 1) 0.4 Billion1
116 UN Global Compact— 3.4 Billion 0.7 Billion 0.4 Billion 0.6 Billion 5.5 Billion
Communication on Progress 1.1 Billion
42
© 2010 IEEE. Reprinted, with permission, from “Performing a Water Footprint Assessment for a Semiconductor Industry.”
1
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E n v ir o n m e n tal Fact o r s
3
Under construction in 2009.
4
Site captures and reuses all water (minus evaporative loss, assumed to be 20% due to arid location, fountains, ponds) and also captures rain water for use on-site.
2009 Corporate Responsibility Report 5
In addition to 1,192 million gallons of fresh water used at the site, we took back 436 million gallons of gray water from the local municipal water treatment facility, further reducing our use of fresh water at the site.
www.intel.com/go/responsibility
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E n v ir o n m e n tal Fact o r s
Thousand Tons
Product Ecology 60 75
58.7
Performance Summary & Goals 54.6
73 Supply Chain Each year, we recycle a high percentage of the waste from
20 74% 80% 25
75%
82 Community our operations. In 2009, our employees continued to iden- 80%
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E n v ir o n m e n tal Fact o r s
Thousand Tons
27.4
and Economic Impact 24.7
23.3
3% 20 100
24 Governance, Ethics,
and Public Policy 11%
17%
E n v ir o n m e n tal Fact o r s 10 84% 50
Landscape and Food Waste Metal Plastic 64% 87% 71%
58%
31 Environment Cardboard Paper Wood
Our Approach to
Environmental Sustainability We recycled 80% of our solid waste in 2009 (with the balance disposed of in landfills),
2005 2006 2007 2008 2009
meeting our corporate-wide goal. Landscape and food waste are turned into mulch and
K e y I s s u e s & P ri o riti e s composted, respectively. Chemical Waste Recycled Chemical Waste
Climate Change and Energy Chemical Waste Generated Generated—Normalized
Efficiency
Chemical Waste
Water Conservation Chemical waste generated was down 13% on an absolute basis and up 23% on a
In 2008, we announced a goal to reduce our generation of chemical waste per chip basis in 2009 compared to 2008. The per chip basis was up due to lower
> Waste: Reduce, Reuse, Recycle
per chip by 10% by 2012 compared to 2007 levels. Since 2007, our chemi- manufacturing volumes. Our recycling rate was 71%, which is below our goal to
Reducing Air Emissions recycle at least 80% of our chemical waste. The drop was driven primarily by the
Product Ecology cal waste has increased due to the growing complexity of our manufactur- closure of a U.S. recycling facility and reduced recycling opportunities in Israel.
Performance Summary & Goals ing processes, such as more layers per wafer and smaller feature sizes that
require additional chemical rinsing. Chemical Waste Management Methods
S o cial Fact o r s
53 Workplace 5%
We are working to reverse this trend and achieve our 2012 goal, including
13%
73 Supply Chain installing systems at two of our facilities to recycle dissolved metal waste.
82 Community This on-site process will allow for the recovery of valuable dissolved metal-
11%
94 Education lic copper, eliminating off-site shipment of this chemical waste stream
A pp e n d i x (and the associated transportation emissions). We have also established
108 About This Report/Approach teams to identify ways to reduce two of our largest waste streams. 71%
to Assurance
109 GRI Content Index Recycle Incinerate Landfill Neutralized/Filtered
116 UN Global Compact—
Communication on Progress The recycled amount also includes chemicals directly reused, chemicals recycled,
and fuel-blending activities.
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E n v ir o n m e n tal Fact o r s
Tons
24 Governance, Ethics, 100 60
(VOCs) and hazardous air pollutants (HAPs). Where we cannot eliminate
and Public Policy
VOCs and HAPs entirely, we install thermal oxidizers and wet scrubbers
E n v ir o n m e n tal Fact o r s 50 30
to neutralize and absorb gases and vapors. Thermal oxidizers first con
31 Environment
centrate VOCs and then oxidize them into carbon dioxide and water vapor.
Our Approach to
Environmental Sustainability The heat used in this process is passed through a heat exchanger to pre-
2005 2006 2007 2008 2009
heat the incoming air and make the unit more efficient and use less fuel.
K e y I s s u e s & P ri o riti e s Nitrogen Oxide (NOx) Carbon Monoxide (CO)
Wet scrubbers re-circulate water that contains a neutralizing agent to
Climate Change and Energy NOx Emissions—Normalized CO Emissions—Normalized
Efficiency remove acidic gases and other contaminants.
Water Conservation Intel eliminated the use of ozone-depleting substances (ODSs) from man Absolute CO emissions were down 33% and per chip CO emissions were down 9% in
2009 compared to 2008. Absolute NOx emissions were down 7%, but per chip NOx
Waste: Reduce, Reuse, Recycle ufacturing in the 1990s. We have also eliminated the use of Class I ODSs emissions were up 25% due to lower manufacturing volumes.
> Reducing Air Emissions
from refrigerant systems. Although some of our refrigerant systems still
Product Ecology
use Class II ODSs, the units are managed in accordance with the U.S. EPA’s VOC and HAP Emissions
Performance Summary & Goals
refrigerant management standards and other local requirements to ensure
Tons
A pp e n d i x
108 About This Report/Approach 100 20
to Assurance
109 GRI Content Index
50 10
116 UN Global Compact—
26 23 21
Communication on Progress 19
15
73 Supply Chain to develop the new regulation. consensus around halogen-free practices and chairing industry standards
82 Community committees on materials selection and eco-design.
Our 45nm processors are manufactured using a lead-free1 process, and our
94 Education
65nm chipsets and new 32nm processors2 are fully lead-free (RoHS com- Electronic Waste
A pp e n d i x pliant without current exemptions). We have also worked with our supply Intel’s products are sold primarily to original equipment manufacturers
108 About This Report/Approach chain to develop standards for lead-free products. For more information,
to Assurance (OEMs) and others who produce finished products. While our components
visit our RoHS/Lead (Pb) Free Solutions web site. are not typically subject to recycling or electronic waste (e-waste) laws,
109 GRI Content Index
116 UN Global Compact— we work with OEMs, retailers, and others to identify shared solutions for
Communication on Progress used electronics. We continue to support the EPA’s Plug-In To eCycling
campaign, which is designed to gather public and private support for proper
recycling of used electronics.
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1
Lead is below 1,000 parts per million (PPM) per EU RoHS Directive July 2006 (2002/95/EC, Annex A). Some EU RoHS exemptions may apply to other components used in the product packaging.
48 2
32nm is manufactured on a lead-free process. Lead is below 1,000 parts PPM per EU RoHS Directive July 2006 (2002/95/EC, Annex A). Some EU RoHS exemptions may apply to other components used in the product packaging.
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Applies only to halogenated flame retardants and polyvinyl chloride (PVC) in components. Halogens are below 900 PPM bromine and 900 PPM chlorine.
E n v ir o n m e n tal Fact o r s
49
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E n v ir o n m e n tal Fact o r s
73 Supply Chain Recycle 80% of chemical and solid waste generated per year. We recycled 80% of our solid waste, but our chemical waste recycling rate
82 Community fell to 71% in 2009. We will work in 2010 to implement new processes to
reverse this trend.
94 Education
A pp e n d i x
Achieve engineering and design milestones to ensure that Intel® products We met our energy-efficiency and product ecology targets in 2009.
maintain the energy-efficiency lead in the market for our next two prod-
108 About This Report/Approach uct generations.
to Assurance
109 GRI Content Index Achieved Partially Achieved Not Met
50
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51
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E n v ir o n m e n tal Fact o r s
K e y I s s u e s & P ri o riti e s In 2010, we will continue to work toward achieving the five-year goals that we set at the beginning of 2008, placing a strong emphasis on energy con
Climate Change and Energy servation and reducing our water use and chemical waste. We will also focus on identifying opportunities to increase our chemical waste recycling rate.
Efficiency
We will continue our collaborations with external organizations on sustainability issues, particularly in identifying the role that ICT can play in addressing
Water Conservation
global environmental challenges. As 2012 draws nearer, we have begun looking beyond our 2012 goals as part of our strategic planning process, to
Waste: Reduce, Reuse, Recycle
identify environmental trends, threats, and opportunities, and to proactively address them as we plan our future technologies.
Reducing Air Emissions
Product Ecology
2012 Environmental Goals
> Performance Summary & Goals
Reduce water use per chip1 below 2007 levels by 2012.
S o cial Fact o r s
53 Workplace Reduce absolute global-warming gas footprint by 20% by 2012 from 2007 levels.
73 Supply Chain Reduce energy consumption per chip 5% per year from 2007 through 2012.
82 Community
Reduce generation of chemical waste per chip by 10% by 2012 from 2007 levels.
94 Education
Recycle 80% of chemical and solid waste generated per year.
A pp e n d i x
108 About This Report/Approach Achieve engineering and design milestones to ensure that Intel® products maintain the energy-efficiency lead in the market for our next two product generations.
to Assurance 1
Assuming a typical chip size of approximately 1 cm2 (chips vary in size depending on the specific product).
109 GRI Content Index
116 UN Global Compact—
Communication on Progress
52
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S o cial Fact o r s
K e y I s s u e s & P ri o riti e s
Career Growth and Development
Communication and Recognition
Workforce Diversity
Compensation, Benefits,
and Work/Life Effectiveness
Health and Safety,
and Employee Wellness
Performance Summary & Goals
73 Supply Chain
82 Community
94 Education
A pp e n d i x
108 About This Report/Approach
to Assurance
70 27,205 37.8
Key Workplace Links
109 GRI Content Index
116 UN Global Compact—
% Intel Values
Communication on Progress Innnovation at Intel
Access the Report Builder who provided feedback who participated in the hours of training Diversity at Intel
55
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56
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S o cial Fact o r s
53 Workplace
In 2009, our turnover rates continued to decline across all regions compared to 2008 and 2007, due in part to the global economic recession. Regular monitoring of turnover by
> Our Approach to Empowering performance rating (top, middle, and low) helps us spot and address issues and trends swiftly.
Our Employees
K e y I s s u e s & P ri o riti e s Other Turnover1 Total Number of Regular Employees as of Year-end 20091
Career Growth and Development
Reason for Termination Count
Communication and Recognition 100 99.9
Thousands
and Employee Wellness Voluntary Separation 1,361
Performance Summary & Goals 86.3
1
Regular employees only, including those whose jobs were eliminated (who received no comparable
73 Supply Chain 85
offer or who rejected an internal job offer), as well as those whose jobs were eliminated and who 83.9
left voluntarily or involuntarily.
82 Community 2
Redeployment is the movement of employees to areas of greater return when there has been a
94 Education change in business conditions. Intel’s redeployment program provides job-search time and support 80 79.8
for eligible employees whose jobs have been impacted. Redeployment is generally not a layoff,
A pp e n d i x as employees have the opportunity while in redeployment to look for other positions within the
company at their regular pay and benefits, or they can choose a separation package.
108 About This Report/Approach 75
to Assurance This table provides a snapshot of turnover due to changes in Intel’s business, such as 2005 2006 2007 2008 2009
109 GRI Content Index divestitures or changes in our internal business priorities, as well as retirement figures. 1
Employee figures in this graph are from our 2009 Annual Report and Form 10-K, and are
slightly different from the totals in other tables in this section.
116 UN Global Compact—
Communication on Progress
We began restructuring efforts in 2006 aimed at creating a more efficient organization
and reducing operating costs. Our efforts included a significant reduction in the size of
our global workforce.
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S o cial Fact o r s
A pp e n d i x with each employee at least quarterly to review the prior quarter’s goals, first implementing these programs.
108 About This Report/Approach the employee’s performance against expectations, employee develop-
to Assurance ment, and the upcoming quarter’s priorities and goals. These meetings
109 GRI Content Index provide opportunities for recognition and discussion of performance
116 UN Global Compact— issues, and contribute to overall improvement in a team’s performance,
Communication on Progress
execution, and business results. “ Everyone has the right to have a good manager
or leader.”
Access the Report Builder Paul Otellini, Intel President and Chief Executive Officer
2009 Corporate Responsibility Report
www.intel.com/go/responsibility
58
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59
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61
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S o cial Fact o r s
62
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K e y I s s u e s & P ri o riti e s This table shows our worldwide workforce by gender. Despite our continued investments and improvements in recruiting and retention programs, the overall percentage of
women has remained relatively flat around 30% since 2005.
Career Growth and Development
Communication and Recognition
2009 U.S. Workforce by Reporting Category
> Workforce Diversity
Compensation, Benefits, African Asian/Pacific Caucasian Hispanic Native Other1 Total
and Work/Life Effectiveness American Islander American
63
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S o cial Fact o r s
31 Environment
S o cial Fact o r s
2009 Worldwide Senior Management and Governance Bodies
53 Workplace Board of Directors Corporate Officers Top 50 in Total Compensation
Our Approach to Empowering
Male
Our Employees
African American — — — — — —
K e y I s s u e s & P ri o riti e s
Career Growth and Development Asian/Pacific Islander — — 5 18.5% 7 14%
Communication and Recognition Caucasian 8 73% 17 63% 30 60%
> Workforce Diversity
Hispanic — — — — — —
Compensation, Benefits,
and Work/Life Effectiveness Native American — — — — — —
Health and Safety,
and Employee Wellness Unidentified — — — — 4 8%
This table provides 2009 year-end diversity information for Intel’s Board of Directors, corporate officers, and top 50 executives in terms of compensation worldwide. The position
Access the Report Builder of Chairman has been held by a woman since May 2009. Over the past five years, the representation of women on the Board increased by 9%, among corporate officers by 8%, and
among the top 50 in total compensation by 4%. At our May 2010 Annual Stockholders’ Meeting, if all of the director nominees are elected, the percentage of women on the Board
2009 Corporate Responsibility Report
will increase to 30%.
www.intel.com/go/responsibility
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65
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53 Workplace (CTDs), sprains, and strains remained the top three injuries in our workforce.
1.2
Our Approach to Empowering 1.0
Our Employees Recordable and Days Away Case Rates 0.5 0.45
1
Rate based on 100 employees working full time for one year
Compensation, Benefits, 2
Occupational Safety and Health Administration (OSHA) rate for U.S. manufacturers
and Work/Life Effectiveness 0.30 3
OSHA rate for U.S. semiconductor manufacturers
70
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71
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Improve early reporting of ergonomic-related injuries, specifically cumulative trauma disorders, with a targeted First Aid to Recordable Ratio goal of 9:1.
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72
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K e y I s s u e s & P ri o riti e s
2009 Assessment and
Audit Summary
Supplier Diversity
Sustainable Purchasing
Extractives and
Conflict-Free Metals
Performance Summary & Goals
82 Community
94 Education
A pp e n d i x
108 About This Report/Approach
to Assurance
109 GRI Content Index
Number of Number of supplier Eligible bid opportunities Intel Human Rights Principles
Access the Report Builder Intel suppliers, in over facilities that we completed that included Electronic Industry Citizenship
Coalition
2009 Corporate Responsibility Report 100 countries a risk assessment at least one historically
Supplier Ethics Expectations
www.intel.com/go/responsibility for during 2009 under-represented
business Supplier Environmental Health
and Safety Requirements
73
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Governance and Air Products and Chemicals, Inc. Micron Technology, Inc.
To bring about lasting social and environmental improve-
Ec o n o m ic Fact o r s
Amkor Technology, Inc. Mitsubishi Gas Chemical Co., Inc.
19 Financial Performance ments in the global electronics supply chain, we collaborate
Applied Materials Inc. NAN YA Printed Circuit Board Corp.
and Economic Impact with other companies in our industry to develop processes,
24 Governance, Ethics, ASE Nidec Corp.
standards, and tools.
and Public Policy ASM International N.V. Nikon Corp.
E n v ir o n m e n tal Fact o r s ASML Nordson Asymtek
Our Global Supply Chain
31 Environment Daifuku Co., Ltd. Novellus Systems, Inc.
Intel depends on a complex, multi-tiered global supply chain that comprises
S o cial Fact o r s more than 9,000 suppliers in over 100 countries. Our suppliers provide Dainippon Screen Mfg Co. Ltd. Pegatron
53 Workplace a myriad of parts, equipment, materials, and services for our factories and Delta Design Inc. Quanta Computer Inc.
73 Supply Chain offices worldwide. To improve transparency, in our report this year we Ebara Corp. Samsung Electro-Mechanics Co., Ltd.
> Our Approach to Supply Chain
have included a list of our top 50 suppliers. Edwards Ltd. SEH America Inc.
Responsibility
Flextronics International Ltd. Shinko Electric Industries Co Ltd.
K e y I s s u e s & P ri o riti e s Supplier Spends by Region
2009 Assessment and Fujifilm Electronics Materials USA, Siliconware Precision Industries
Audit Summary 12% Inc. Co., Ltd.
Supplier Diversity Gemtek Technology Co., Ltd. Siltronic AG
Sustainable Purchasing Grohmann Engineering GMBH Stats ChipPac Ltd.
Extractives and
28% Harbor Electronics SUMCO Corp.
Conflict-Free Metals
Performance Summary & Goals 60% Hitachi High Technologies America, Tokyo Electron Ltd.
Inc.
82 Community
94 Education Hitachi Kokusai Electric, Inc. Tokyo Ohka Kogyo Co., Ltd.
Americas APAC EMEA
A pp e n d i x
Hon Hai Precision Industry Co., Ltd. TSMC
APAC = Asia-Pacific EMEA = Europe, Middle East, Africa
108 About This Report/Approach Ibiden Co. Ltd. Ultratech, Inc.
to Assurance Inventec Corp. Universal Scientific Industrial Co., Ltd.
109 GRI Content Index Our Expectations KLA-TENCOR Corp. UTi Inventory Management
116 UN Global Compact— Intel first codified supplier expectations regarding human resources, Solutions Inc.
Communication on Progress environmental management, worker safety, and ethics in 1998. In 2004, KMG Chemicals, Inc. Varian Semiconductor Equipment
we adopted the Electronic Industry Code of Conduct (EICC Code), which is Associates, Inc.
consistent with Intel’s own Code of Conduct and Human Rights Principles. Mallinckrodt Baker, Inc. VWR International, LLC
Access the Report Builder Our Electronic Industry Citizenship Coalition (EICC) Commitment Letter, 1
As of December 31, 2009
Code of Conduct, and Human Rights Principles, as well as other corpo-
2009 Corporate Responsibility Report
The 50 production and capital suppliers in this list represent more than 80% of Intel’s
www.intel.com/go/responsibility rate governance and business ethics documents, are available on our
total purchasing spends in 2009. A number of these suppliers were recipients of Intel’s
Governance and Ethics web site. 2009 Supplier Continuous Quality Improvement and Preferred Quality Supplier awards.
74
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75
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76
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S o cial Fact o r s
organizations to help promote supplier diversity (NMSDC), the National Gay and Lesbian Chamber of Commerce (NGLCC),
Access the Report Builder WEConnect International (WCI), and Minority Supplier Development China
awareness, set global diversity certification
(MSD China). We also participate in events sponsored by local organizations
2009 Corporate Responsibility Report standards, and establish cross-industry diver- dedicated to supplier diversity.
www.intel.com/go/responsibility
sity auditing policies and practices.
77
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78
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79
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80
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A pp e n d i x
108 About This Report/Approach
to Assurance In 2010, we will continue to implement ESG tools and processes, and to assess and audit our supply base using a systematic process. We will also take
109 GRI Content Index further action to advance our supplier diversity and environmental sustainability supply chain efforts.
116 UN Global Compact—
Communication on Progress Supply Chain Goals for 2010
Include historically under-represented businesses in 100% of all eligible bidding opportunities, and participate in international supplier diversity standards adoption
and community awareness campaigns.
Access the Report Builder Continue to integrate ESG factors into supplier awards, Supplier Report Card, contracts, purchasing specifications, and training.
81
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K e y I s s u e s & P ri o riti e s
Intel Involved and
Skills-Based Volunteering
Collaborating to Solve
Community Challenges
with Technology
The Intel Foundation
and Community Giving
Performance Summary & Goals
Watch Video
94 Education
A pp e n d i x
108 About This Report/Approach
to Assurance
989,681 22.7 $
190
109 GRI Content Index Key Community Links
116 UN Global Compact— Million Intel in Your Community
Communication on Progress
Intel Foundation
Number of hours that Amount raised Number of e-classrooms Intel Community Giving
Access the Report Builder Intel employees through our U.S. Community built in China by the
2009 Corporate Responsibility Report volunteered in 2009 Giving campaign end of 2009 in support of
www.intel.com/go/responsibility in 2009 earthquake recovery efforts
82
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83
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Governance and Entering We have worked with third parties to When Intel decided to build an assembly and test facility in Vietnam, our needs assessment resulted
Ec o n o m ic Fact o r s conduct needs assessment studies in the creation of local programs focused on construction and road safety, education, and community
19 Financial Performance to prioritize our community engage- recycling. In Dalian, China, we established multiple community programs and partnerships with organi
and Economic Impact ment activities. We also begin work- zations during the construction process, including technical college capacity-building investments and
ing with community organizations to employee volunteer programs in education and environmental projects. In 2009, a year before opera-
24 Governance, Ethics,
develop programs and initiatives prior tions were set to begin, Intel Dalian employees logged more than 5,000 volunteer hours, and the
and Public Policy
to commencing operations. company received a 2009 CSR Award from the Dalian government.
E n v ir o n m e n tal Fact o r s
Operating We build relationships with local The Intel New Mexico Community Environmental Working Group (CEWG) meets monthly to discuss
31 Environment stakeholders through informal meet- concerns about Intel’s environmental impact on the local community, with a focus on air emissions.
S o cial Fact o r s ings, community advisory panels The CEWG is chaired by John Bartlit, who is also the chairman of New Mexico Citizens for Clean Air
(CAPs), working groups, and commu- and Water, and is facilitated by a third party. In 2009, the Department of Health and Human Services
53 Workplace
nity perception surveys (usually com- Agency for Toxic Substances and Disease Registry published a Public Health Consultation in response
73 Supply Chain pleted by third parties). CAP members to a petition from a community group also concerned with air emissions. Intel continued to engage with
82 Community generally provide constructive input community members throughout the year to address concerns related to the report. CEWG meeting
> Our Approach to on a broad range of issues, such as minutes and agendas for the last six years are posted on the CEWG web site.
Community Engagement education, environmental impact,
In July 2008, a task force was formed to address concerns about odors coming from brine evaporation
health and safety, and emergency
pools that are part of the water conservation management system at an Intel Arizona manufacturing
K e y I s s u e s & P ri o riti e s response and management.
facility. The group—consisting of neighbors and representatives from the City of Chandler, Intel
Intel Involved and Environmental Health and Safety, and Intel Corporate Affairs—collaborated to come up with an imme
Skills-Based Volunteering
diate fix to reduce the odors as much as possible. Following additional research, a permanent odor
Collaborating to Solve elimination solution was installed, and an air-monitoring system and equipment maintenance plan were
Community Challenges put in place to ensure ongoing success. After going through the heat of summer with an absence of
with Technology odor in 2009, the team reported to the Chandler City Council that the issue had been resolved.
The Intel Foundation
and Community Giving Exiting When making the difficult decision Intel announced in January 2009 that it would restructure some of the company’s manufacturing
to close a facility, we try to minimize operations by taking older capacity off-line and closing five factories during 2009. This included the
Performance Summary & Goals
the impacts on employees and the closing of our assembly and test operations in the Philippines after 35 years of operations in the coun-
94 Education local community by collaborating try. The difficult decision to close the Intel Philippines site was the result of the severe global economic
A pp e n d i x with local officials and providing downturn. Given our long presence at the site and our close ties with the community, we took careful
severance packages and job search steps to minimize the negative impacts as much as possible. We developed a comprehensive exit strat-
108 About This Report/Approach
support for employees. egy and plan, which included advance notice for stakeholders, separation packages and career transi-
to Assurance
tion workshops for employees, and continuation of key education programs in the country. The Asian
109 GRI Content Index Institute of Management (AIM) published a case study presenting Intel as a model of what companies
116 UN Global Compact— can do proactively when faced with the closure of a facility. AIM will use the case study for its classes
Communication on Progress in management and business education.
We work with community stakeholders to consider the impact of our operations at all phases. For more information on our overall approach to stakeholder engagement, see
“Stakeholder Engagement” in the Our Approach to Corporate Responsibility section of this report.
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Percent
E n v ir o n m e n tal Fact o r s 30 Total dollar match under IIMGP1 $6.8 million
82 Community We estimate that approximately 38% of employee volunteer hours in 2009 were
Our Approach to related to education activities, 60% to community and civic organizations, and 2% to
Community Engagement environmental organizations. Actual environment-related hours may be higher, since
2005 2006 2007 2008 2009 this estimate did not include additional environment-related volunteer activities at
K e y I s s u e s & P ri o riti e s Volunteer Goal Volunteer Rate schools and civic organizations. Approximately 17% of employee volunteer hours in
> Intel Involved and
=5,000 schools and nonprofit organizations in 40 countries. 2009 were related to skills-based volunteering activities. For example, our legal team
Skills-Based Volunteering volunteered 2,990 pro bono hours in 2009, which equates to an estimated $750,000
The percentage of Intel employees who volunteered dropped following the end of our in donated services.
Collaborating to Solve 2008 million-hour anniversary challenge. However, our 2009 volunteerism rate of 38%
Community Challenges remained in line with our historical trends and strong compared to our peer companies.
with Technology
The Intel Foundation Intel Involved Hero Award Semifinalists Mouse over countries
and Community Giving for more details.
Performance Summary & Goals
94 Education
A pp e n d i x
108 About This Report/Approach Ireland
to Assurance Oregon
California New Mexico
109 GRI Content Index China
116 UN Global Compact—
India
Communication on Progress
Costa Rica
Malaysia
Israel
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A pp e n d i x
tem that will work in our dynamic outdoor, Intel volunteers contributed to in 2009:
108 About This Report/Approach all-season environment. Whether brainstorming “Leaning” a Food Bank. At a local food bank in New Mexico, employee
to Assurance how to ‘chicken-proof’ a night-vision camera or volunteers got a unique opportunity to practice the “lean” manufacturing
109 GRI Content Index
working with our IT professionals to overcome skills that they had learned at Intel. After analyzing food-packing opera-
116 UN Global Compact—
infrastructure limitations in a forest setting, it tions, they recommended measures to improve efficiencies in processes
Communication on Progress
and safety, and reduce waste. Over the course of the four working ses-
has been a pleasure to see their expertise and
sions, output went from 198 boxes an hour to 300 boxes an hour.
enthusiasm at work.”
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Renata Pomponi, Manager, Massachusetts Audubon’s
2009 Corporate Responsibility Report Drumlin Farm
www.intel.com/go/responsibility
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K e y I s s u e s & P ri o riti e s
Collaborating to Solve Community tion that allows participants to donate their PC’s spare processing power
to drive life-changing research projects. Supported projects focus on find-
Intel Involved and Challenges with Technology ing cures and treatments for cancer, HIV, malaria, and Alzheimer’s disease,
Skills-Based Volunteering
> Collaborating to Solve Intel develops alliances and partnerships with govern- as well as combating global warming. By the end of 2009, Progress Thru
Community Challenges ments, leading NGOs, and other companies to develop Processors had attracted more than 125,000 Facebook fans, and partici-
with Technology
technology solutions designed to address some of the pants had contributed close to 17,000 gigaflop years’ worth of computing
The Intel Foundation
and Community Giving world’s biggest challenges. We believe that public-private power to humanitarian research.
Performance Summary & Goals partnerships are crucial to achieving scalable impact. NetHope Collaboration. NetHope is a consortium of chief information
94 Education officers, senior program managers, and technical experts from some of
Grameen-Intel Social Business. In 2008, Intel Capital, Intel’s global
A pp e n d i x the largest international NGOs. Intel started collaborating with NetHope
108 About This Report/Approach
investment organization, formed a business venture with Grameen Trust
in 2008 to help develop ICT solutions in support of member NGOs’ health-
to Assurance aimed at applying self-sustaining information and communications tech-
care, economic development, and disaster relief programs. Projects to date
109 GRI Content Index nology (ICT) solutions to address issues related to poverty, healthcare, and
include applications of technology to help coordinate post-earthquake
116 UN Global Compact— education in developing countries. The business venture combines Intel’s
relief efforts in Haiti; the use of rugged, Intel-powered classmate PCs to
Communication on Progress technology innovation and Grameen’s extensive experience in creating
help track and eradicate a disease that is attacking the cassava crop in
opportunities for economic development and income generation at the
Africa; and technology access programs for schools in Brazil and Tanzania.
village level. In 2009, the venture launched a pilot program in Bangladesh
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aimed at improving maternal health and decreasing maternal mortality.
2009 Corporate Responsibility Report A pilot in India focused on farmers used ICT solutions to help increase the
www.intel.com/go/responsibility
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116 UN Global Compact— medicine] system, it is much easier to observe Beyond cash contributions, employees are generous with other types of
Communication on Progress
and learn the different techniques in surgical donations; for instance, in 2009 Intel Germany employees donated more
procedures, thanks to Intel’s vision and commit- than 500 boxes of clothes, food, toys, and other items to children living in
poverty in Romania. In Costa Rica, employees participated in a book dona-
Access the Report Builder ment to developing communities.”
tion drive and donated “green” products to local NGOs.
2009 Corporate Responsibility Report Dr. Imad Hajj, Chairperson, Surgery Department, Saint George
www.intel.com/go/responsibility University Hospital, Beirut, Lebanon
90
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93
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K e y I s s u e s & P ri o riti e s
Inspiring Young Innovators
Empowering Teachers
Investing in Higher Education,
Research, and Entrepreneurship
Technology and Access
Performance Summary & Goals
Watch Video
A pp e n d i x
108 About This Report/Approach
to Assurance
109 GRI Content Index
7 1 1,700
116 UN Global Compact—
Key Education Links
Communication on Progress
Million Million Intel’s Education Strategy
Intel® Teach Program
Teachers trained Learners reached Universities using Intel International Science and
Engineering Fair
Access the Report Builder through through Intel’s parallel
Intel World Ahead Program
2009 Corporate Responsibility Report Intel® Teach Program Intel® Learn Program programming curriculum
Intel® Learning Series
www.intel.com/go/responsibility
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E n v ir o n m e n tal Fact o r s support improvements in this area. We are especially pleased that all three education.
31 Environment winners of the Intel Foundation Young Scientist Award at the 2009 Intel
Over the past two years, we have increased our collaboration on education
International Science and Engineering Fair (Intel ISEF), a program of Society
S o cial Fact o r s initiatives with other companies in the technology industry. In 2009, Intel,
for Science & the Public, were young women.
53 Workplace Cisco, and Microsoft announced a research initiative—the Assessment and
73 Supply Chain Emphasis on Collaboration. Systemic improvements in education Teaching of 21st Century Skills (ATC21S)—and formed five working groups
82 Community require collaboration with others who share the same goals. By combin- with more than 60 leading scholars focused on how to best define, mea-
94 Education ing expertise, experience, and resources, we can provide greater benefits sure, and teach the skills needed to compete in today’s global knowledge
> Our Approach to Improving for students and educators worldwide than we can by working alone. As economy. White papers are available for download, and six countries—
Education Worldwide
a result, we engage with a number of development agencies, multilateral Australia, Finland, Portugal, Singapore, the United Kingdom, and the U.S.—
K e y I s s u e s & P ri o riti e s organizations, and nonprofits to advocate for educational excellence have committed to run ATC21S pilots of the assessment methods in 2010.
Inspiring Young Innovators and access, including the Clinton Global Initiative, the Partnership for 21st
Empowering Teachers Century Skills, the United Nations Educational, Scientific, and Cultural
Investing in Higher Education, Organization (UNESCO), and the United States Agency for International
Research, and Entrepreneurship
Development (USAID). For more information on our public-private partner-
Technology and Access
ships and strategic alliances in education, visit the Intel Education web site.
Performance Summary & Goals
By combining expertise, experience, and
A pp e n d i x In 2009, we announced our support of U.S. President Barack Obama’s
resources, we can provide greater benefits
108 About This Report/Approach Change the Equation campaign, which focuses on the urgent need to
to Assurance for students and educators worldwide than
improve science, technology, engineering, and math (STEM) education in
109 GRI Content Index the U.S. We also signed memorandums of understanding (MOUs) aimed we can by working alone.
116 UN Global Compact— at improving education in a number of other countries. For example,
Communication on Progress
we signed an MOU with UNESCO Bangkok to use Intel® Teach Program
resources to advance teacher education in nine countries across the
Asia-Pacific region.
96
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97
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24 Governance, Ethics, math programs. We also collaborate on initiatives that help ideas, showcased cutting-edge projects, and competed for more than
and Public Policy $4 million in awards and scholarships. In conjunction with Intel ISEF, we
young people develop teamwork and technology skills in
also sponsor the Intel ISEF Educator Academy, which brings together
E n v ir o n m e n tal Fact o r s fun, engaging environments.
31 Environment educators and government officials from around the world to explore
innovative methods for engaging students in the study of science and
S o cial Fact o r s Science Competitions math, and to share best practices in organizing and managing high-quality
53 Workplace The Intel Foundation is the lead sponsor of two premier science competi-
science fairs.
73 Supply Chain tions, the Intel International Science and Engineering Fair (Intel ISEF) and
82 Community the Intel Science Talent Search (Intel STS), which are both programs of In 2009, we increased our focus on Intel ISEF alumni, in an effort to better
94 Education Society for Science & the Public. The competitions encourage students to understand the long-term impact of student participation in the program.
Our Approach to Improving Intel Russia invited former Intel ISEF participants to join a Russian Intel ISEF
solve problems and tackle challenging scientific questions through authen-
Education Worldwide
tic research. In 2008, Intel committed to invest $120 million to extend Alumni Club, enabling them to reconnect with each other, in some cases
K e y I s s u e s & P ri o riti e s
our support of Intel ISEF, Intel STS, and related initiatives for 10 years. By a decade after they had competed. A number of Russian alumni—many
> Inspiring Young Innovators of whom had gone on to earn accolades for educational and professional
celebrating their achievements and promoting, open-minded student sci-
Empowering Teachers achievements—attended the 2009 Intel ISEF event, where they inspired,
ence research and learning, we hope to encourage young people to pursue
Investing in Higher Education, assisted, and shared their experiences with current competitors. In addi-
Research, and Entrepreneurship advanced education and careers in math, science, and engineering.
tion, at a celebration marking 10 years of Intel education initiatives in India,
Technology and Access Intel STS. Intel STS, the oldest and most prestigious pre-college science
a participant from the 1999 Intel ISEF spoke about how the competition
Performance Summary & Goals competition in the U.S., provides an opportunity for high school seniors to
put her on the path to becoming a research scientist.
A pp e n d i x complete an original research project and have it judged by highly regarded
108 About This Report/Approach professional scientists. In 2009, close to 1,600 students competed and
to Assurance
were judged for their individual research ability, scientific originality, and
109 GRI Content Index
creative thinking. Intel awards more than $1.25 million to students and
116 UN Global Compact—
Communication on Progress
their schools during the annual week-long competition. Each of the 300 “ Participating in Intel ISEF was my dream.
semifinalists in 2009 received $1,000, as did their schools. Forty finalists Meeting the President of Brazil was something
traveled to Washington, D.C., where they competed for scholarships rang-
I never thought about. I am only 17!”
ing from $20,000 to $100,000, and enjoyed a visit with President Barack
Ana Clara Cassanti, Intel ISEF participant, São Paulo, Brazil
Obama at the White House.
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99
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100
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Million
0.5
A pp e n d i x real-life situations. For example, participating in the Intel Teach Program
108 About This Report/Approach enabled a teacher on Australia’s Kangaroo Island to deepen students’
to Assurance knowledge of complex environmental issues and their island’s ecosystem.
109 GRI Content Index 2005 2006 2007 2008 2009
116 UN Global Compact— As of year-end 2009, we had trained 7 million teachers through the Intel® Teach
Communication on Progress Program since 1999.
101
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S o cial Fact o r s
understanding and computational skills. Intel Math is being used to support
53 Workplace U.S. President Barack Obama’s STEM initiative, and in 2010 we plan to Investing in Higher Education, Research,
73 Supply Chain make the program more widely available in the U.S.
82 Community
and Entrepreneurship
94 Education skoool™ Learning and Teaching Technology Intel and the Intel Foundation support university programs
Our Approach to Improving The skoool™ Learning and Teaching Technology program supports math
for faculty and students to advance research and edu-
Education Worldwide and science learning for students 13 to 15 years old—the age when many
cation in computer science and engineering—as well as
K e y I s s u e s & P ri o riti e s
young people progress from concrete learning to more abstract thinking.
Skoool.com is a web-based e-learning portal made up of learning modules
initiatives aimed at increasing the number of women and
Inspiring Young Innovators
for students working alone or in a classroom setting. Individual modules under-represented minorities in these fields.
Empowering Teachers
> Investing in Higher Education, can be incorporated into teachers’ lesson plans. The program is now
We also support initiatives that connect Intel and university researchers
Research, and Entrepreneurship available in 23 countries and 7 languages, and has reached over 3 million
through focused grants or funding of larger scale research labs. Intel’s
Technology and Access students. Intel develops and deploys the program in conjunction with
technology entrepreneurship program helps advance technology adoption
Performance Summary & Goals education ministries and public and private-sector organizations.
by combining true business acumen with innovation to create new busi-
A pp e n d i x
ness startups worldwide.
108 About This Report/Approach Intel Schools of Distinction
to Assurance Intel Schools of Distinction exemplify 21st century teaching and learn- The Intel® Higher Education program is active in more than 80 countries,
109 GRI Content Index ing environments, and offer innovative programs that inspire students in interacts with more than 1,700 universities through curriculum programs,
116 UN Global Compact— and is engaged in over 250 research projects worldwide. More than
the U.S. to excel in math and science. To be considered an Intel School of
Communication on Progress
Distinction, a school must develop curricula that meet or exceed bench- 285,000 students now have the skills to develop software with the
marks, including national mathematics and science content standards, and latest technology when they graduate. For more information, visit the
an environment that fosters excellence and excitement in these critical Intel Higher Education Program web site.
subject areas. Winning programs serve as models for schools across the
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country. We hope that by replicating proven programs, schools everywhere
2009 Corporate Responsibility Report can reinvigorate their own science and math teaching.
www.intel.com/go/responsibility
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have contributed in raising the research qual- case global business opportunities that have the greatest potential for
positive impact on society. Competitors from China’s Tsinghua University
ity standard at NTU as well as influencing the
took first place in the competition, earning a $25,000 award from the Intel
Taiwan computer science research community.” Foundation for the development of a biodegradable bone screw. Other
Access the Report Builder Professor Hao Chu, National Taiwan University innovative business plans included groundbreaking solutions for cleaning
2009 Corporate Responsibility Report water and soils affected by oil pollution, methods for addressing pesticide
www.intel.com/go/responsibility
concerns in Chinese agriculture, diapers that diagnose urinary tract infec-
tions, and a social learning platform for math and science education.
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ing a $25,000 award from the Intel Foundation of how broadband connectivity can help address education, and social and
economic challenges, in developed and developing regions of the world.
for the development of a biodegradeable
bone screw.
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82 Community
94 Education
Our Approach to Improving In 2010 and beyond, we will continue to expand and support the development of our education programs, reaching more teachers and young people
Education Worldwide around the world. For example, in 2010 we plan to launch a new curriculum unit, Intel® Learn Technology and Entrepreneurship, through which learners will
K e y I s s u e s & P ri o riti e s discover how computers are used in a variety of jobs and careers. We will also continue to place a high importance on collaboration with governments to
Inspiring Young Innovators advance the quality of education and support systemic change in education.
Empowering Teachers
Investing in Higher Education, Education Goals for 2010 and Beyond
Research, and Entrepreneurship Enable teachers to prepare students with 21st century skills by training 10 million teachers by 2011 through the Intel® Teach Program and expanding our portfolio
Technology and Access of program options to meet local needs.
> Performance Summary & Goals
Reach an additional 250,000 learners in 2010 through the Intel® Learn Program. Extend the program by adding a new curriculum unit, Intel® Learn Technology and
A pp e n d i x Entrepreneurship.
108 About This Report/Approach By 2011, reach the goal of 100,000 PC donations to schools in emerging markets to improve teaching and learning through ICT use.
to Assurance
109 GRI Content Index
116 UN Global Compact—
Communication on Progress
106
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3 Letter From Our CEO
Overview
5 Corporate Profile
8 Our Approach to Corporate
Responsibility
Governance and
Ec o n o m ic Fact o r s
19 Financial Performance
and Economic Impact
24 Governance, Ethics,
and Public Policy
E n v ir o n m e n tal Fact o r s
31 Environment
S o cial Fact o r s
53 Workplace
Appendix
73 Supply Chain
82 Community
94 Education
A pp e n d i x
108 About This Report/Approach
to Assurance
109 GRI Content Index
116 UN Global Compact—
Communication on Progress
107
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A b o u t thi s R e p o rt
Corporate-wide emissions are calculated using the Climate Leaders Greenhouse Gas (GHG)
Inventory Guidance, which defines how U.S. Environmental Protection Agency (EPA) Climate
Leader 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
World Resources Institute and the World Business Council for Sustainable Development.
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 the CSR@Intel blog to contact our Corporate Responsibility team.
3.6–3.8 Boundary of the report; Limitations on scope and/or report About This Report 108
boundary; Basis for reporting on joint ventures, subsidiaries, etc.
3.9 Data measurement techniques and the bases of calculations. About This Report; 32, 108 Additional information provided in discussion of indicators throughout
Environment the report.
3.10–3.11 Explanation of the effect of any restatements of information About This Report 108 Some historical figures have been restated. The majority reflect minor
provided in earlier reports; Significant changes from previous reporting and individual indicator changes that occur when new information is received after the close of
periods. descriptions the data collection period.
3.12 Table identifying the location of standard disclosures in the report. GRI Index 109
3.13 Policy and current practice with regard to seeking external assurance About This Report 108
for the report.
Covered in the Report Partially Covered in the Report Not Covered in the Report
Covered in the Report Partially Covered in the Report Not Covered in the Report
Covered in the Report Partially Covered in the Report Not Covered in the Report
EN2 Percentage of materials used that are recycled input materials. (Core) Environment 48, 79 Given the complexity and size of our products, calculation of percentage
of recycled content is not applicable; more significant are our efforts to
design out materials such as lead and halogens.
EN3 Direct energy consumption by primary energy source. (Core) Environment 38
EN4 Indirect energy consumption by primary source. (Core) Environment 39 Our purchased energy is from public utilities.
EN5–EN7 Energy saved due to conservation and efficiency improve- Environment 37
ments. (Additional); Initiatives to provide energy-efficient or renewable
energy-based products and services. (Additional); Initiatives to reduce
indirect energy consumption and reductions achieved. (Additional)
EN8–EN10 Total water withdrawal by source. (Core); Water sources Environment 41
significantly affected by withdrawal of water. (Additional); Percentage
and total volume of water recycled and reused. (Additional)
EN11–EN12 Location and size of land owned, leased, managed in, or Environment 34 Not reported in this manner. We cover biodiversity in the Environment
adjacent to protected areas and areas of high biodiversity value. (Core); section of the report; facilities owned are reported in 2009 Annual Report
Description of significant impacts on activities, products, and services on and Form 10-K (p 110).
biodiversity in protected areas and areas of high biodiversity value. (Core)
EN16–EN18 Total direct and indirect greenhouse gas emissions by weight. Environment 37
(Core); Other relevant indirect greenhouse gas emissions by weight (Core);
Initiatives to reduce greenhouse gas emissions, and reductions achieved.
(Additional)
EN19 Emissions of ozone-depleting substances by weight. (Core) Environment 47
EN20 NOx, SOx, and other significant air emissions by type and weight. (Core) Environment 47
EN21 Total water discharge by quality and destination. (Core) Environment 42, 44 Aggregate information provided on discharge by total quantity.
EN22 Total weight of waste by type and disposal method. (Core) Environment 45
EN23 Total number and volume of significant spills. (Core) Environment 51 No major spills reported in 2009. Other non-compliance issues reported.
EN24 Weight of transported, imported, exported, or treated waste deemed Environment 46 Hazardous waste reported. Transport, import, and export information not
hazardous under the terms of the Basel Convention Annex I, II, III, and VIII, reported.
and percentage of transported waste shipped internationally. (Additional)
EN26 Initiatives to mitigate environmental impacts of products and Environment 48
services, and extent of impact mitigation. (Core)
EN27 Percentage of products sold and their packaging materials that are Environment; 79 Intel does not have data collection processes to track, record, and report this
reclaimed by category. (Core) Supply Chain information. However, 75% of our packaging material is reusable/recyclable.
Covered in the Report Partially Covered in the Report Not Covered in the Report
EN28 Monetary value of significant fines and total number of non- Environment 51
monetary sanctions for non-compliance with environmental laws and
regulations. (Core)
EN29 Significant environmental impacts of transporting products and Environment; 36 CO2 emissions of logistics and supply chain and percentage of total CO2
other goods and materials used for the organization’s operations, and Supply Chain emissions are estimated, and we are developing tools to help improve
transporting members of the workforce. (Additional) measurement and tracking of our impact in this area.
5c. Social Performance Indicators: Labor Practices
Management Approach Disclosures: Labor Practices Our Approach to CR; 8, 54,
Workplace; 74
Supply Chain
LA1–LA2 Total workforce by employment type, employment contract, Workplace 56 Information provided on turnover by region.
and region. (Core); Total number and rate of employee turnover. (Core)
LA3 Benefits provided to full-time employees that are not provided to Workplace 65 Part-time and contract employees have similar access to health and retire-
temporary or part-time employees, by major operations. (Additional) ment benefits as full-time employees. Benefits related to life insurance,
vacation, and tuition reimbursement are prorated for part-time employees.
Contract employees are not eligible for a number of benefits, including
long-term disability, equity incentive plan, and tuition reimbursement.
Part-time and contract employees are not eligible for sabbatical benefit.
LA4 Percentage of employees covered by collective bargaining agree- The percentage is zero.
ments. (Core)
LA5 Minimum notice period(s) regarding significant operational changes, Workplace 57, 84 We provide advance notice in accordance with local requirements in the
including whether it is specified in collective agreements. (Core) different locations where we operate.
LA7 Rates of injury, occupational diseases, lost days, and absenteeism, Workplace 69
and number of work-related fatalities by region. (Core)
LA8 Education, training, counseling, prevention, and risk control programs Workplace 70
in place to assist workforce members, their families, or community mem-
bers regarding serious diseases. (Core)
LA10–LA11 Average hours of training per year per employee, by employee Workplace 59, 69
category. (Core); Programs for skills management and lifelong learning that
support continued employability. (Additional)
LA12 Percentage of employees receiving regular performance and career Workplace 58
development reviews. (Additional)
Covered in the Report Partially Covered in the Report Not Covered in the Report
Covered in the Report Partially Covered in the Report Not Covered in the Report
SO4 Actions taken in response to incidents of corruption. (Core) GE&PP 26 Data reported on anti-corruption training and assessment processes.
SO5–SO6 Public policy positions and participation in public policy develop- GE&PP 28
ment and lobbying. (Core); Total value of financial and in-kind contributions to
political parties, politicians, and related institutions by country. (Additional)
SO7–SO8 Total number of legal actions for anti-competitive behavior, anti- GE&PP 28 See also Competition in the Innovation Economy web site and
trust, and monopoly practices and their outcomes. (Additional); Monetary 2009 Annual Report and Form 10-K (p 103).
value of significant fines and total number of non-monetary sanctions for
non-compliance with laws and regulations. (Core)
5f. Social Performance Indicators: Product Responsibility
Management Approach Disclosures: Product Responsibility Environment 32, 48 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 Environment 32 For more information, refer to Intel Quality System Handbook.
and services are assessed for improvement, and percentage of significant
products and services categories subject to such procedures. (Core)
PR3 Type of product and service information required by procedure, and Environment 48 We also provide our customers with information on the energy efficiency
percentage of significant products and services subject to such informa- of our products through our web site and publications on our web site.
tion requirements. (Core)
PR4 Total number of incidents of non-compliance with regulations and Zero incidents in 2009.
voluntary codes concerning product and service information and labeling,
by type of outcome. (Additional)
PR5 Practices related to customer satisfaction, including results of Our Approach to CR; 12, 65 For more information, refer to Intel Quality System Handbook.
surveys measuring customer satisfaction. (Additional) Workplace
PR6 Programs for adherence to laws, standards, and voluntary codes GE&PP 26 Covered in Intel Code of Conduct.
related to marketing communications, including advertising, promotion,
and sponsorship. (Core)
PR8 Total number of substantiated complaints regarding breaches of Information on Intel’s privacy policy available on our Security and Privacy
customer privacy and losses of customer data. (Additional) web site.
PR9 Monetary value of significant fines for non-compliance with laws and Information on legal proceedings included in 2009 Annual Report and
regulations concerning the provision and use of products and services. (Core) Form 10-K (p 103).
Covered in the Report Partially Covered in the Report Not Covered in the Report
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 2009,
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.
Copyright © 2010 Intel Corporation. All rights reserved. Intel, Intel logo, Intel386, Intel486, Intel Atom, Intel Core, Intel Sponsors of Tomorrow, Intel vPro, Intel Xeon, and Pentium are trademarks of Intel Corporation in the U.S. and other countries.
*Other names and brands may be claimed as the property of others. 0510/SPF/LAI/PDF 323763-001US