2011 Corporate Responsibility Report Connecting and Enriching Lives Through Technology This document contains interactive elements on mouse-over and click. Intel’s vision: Over the next decade, we will create and extend computing technology to connect and enrich the lives of every person on earth. In this report, we discuss our corporate responsibility performance during 2011, and the actions we are taking to achieve our vision. 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 3rd generation Intel® Core™ processor family, built using 22-nanometer process technology with 3-D Tri-Gate transistors, delivers energy-efficient performance that will help shape the computing era ahead. LetteR FROM OUR CEO 2011 was an outstanding year for Intel. Despite a tough macro-economic environment, the company set records in platform unit sales, revenue, and earnings, reflecting strong global demand for our products and solid execution by our employees around the world. We have an ambitious vision for the next decade: Create and extend computing technology to connect and enrich the lives of every person on earth. Four strategic objectives guide us toward this vision. One of these objectives, in particular, Inspire the next generation. As a technology innovator, Intel depends on the availability reminds us of the integral role that corporate responsibility plays in the achievement of our of skilled workers, a healthy technology ecosystem, and knowledgeable customers. In turn, vision: “Care for our people, care for the planet, and inspire the next generation.” Over the past the health of local economies—including those where our employees live and work—depends year, we have made significant strides in each of these areas. on access to technology and quality education. In support of our efforts to transform educa- tion, Intel and the Intel Foundation collaborate with governments and educators, and invest Care for our people. I am honored to work with the employees of Intel, who deliver approximately $100 million annually in programs around the world—from professional devel- extraordinary results every day to make our company’s vision a reality. Ours is a company of opment for teachers to entrepreneurship programs to premier science and engineering fairs. inventors. Our success rests on our employees’ ability to create and innovate—in technology, In 2011, we reached our goal of providing technology training to 10 million teachers. Our initia- in business, and in their communities. One of the six Intel Values, “Great Place to Work,” rein- tives and technology solutions for the education market helped create economic and social forces the strategic importance we place on investing in our people. We support this value by opportunities for people in over 100 countries. cultivating a safe, respectful, and ethical work environment that enables employees to thrive both on and off the job. In 2011, we invested approximately $299 million in employee train- Intel is committed to continuous improvement in our own practices, and works with other ing and development, and through our extensive volunteer programs, we helped empower organizations to advance best practices in corporate responsibility worldwide. In 2011, our employees to donate more than 1.1 million hours of service to their communities. Our we also continued to raise the bar for expectations in our supply chain, through increased workplace practices once again earned us a spot on Fortune magazine’s annual “100 Best assessments and audits and by tackling difficult issues such as conflict minerals. Companies to Work For” list. As a global technology and business leader, we are committed to doing the right things, the Care for the planet. We believe that technology plays a fundamental role in finding right way. Deeply embedding corporate responsibility into our business creates value for solutions to the world’s environmental challenges. Intel is a recognized leader in sustainability Intel by helping to mitigate risk, save costs, protect our brand value, and develop new market for the ways we work to minimize the environmental impacts of our own operations and opportunities. For Intel, corporate responsibility is simply good business. design products that are increasingly energy efficient. In 2011, for the fourth year in a row, We welcome your feedback on this report and your suggestions on how we can continue to Intel was the largest voluntary purchaser of green power in the U.S., according to the U.S. improve our performance and apply our technology to create a better future. Environmental Protection Agency, and became the first semiconductor company to obtain LEED* Silver Certification for an entire manufacturing campus. We also introduced the world’s first 3-D Tri-Gate transistors, which can significantly improve a silicon chip’s performance and energy efficiency. To underscore the importance of sustainability to our business, we again included an environmental component in the formula used to determine bonuses for all of our employees. We continued to face challenges in the areas of water conservation and chemical Paul S. Otellini waste reduction, but we have set new 2020 environmental goals to drive continuous improve- President and Chief Executive Officer ment in both our manufacturing operations and the energy efficiency of our products. COntents 3 Letter From Our CEO EnviRONMental FactORS 84 Supply Chain About This Document 85 Our Approach to Supply Chain 5 Our Business and 37 Environment Responsibility This document contains interactive elements Integrated Value Approach 38 Our Approach to Environmental on mouse-over and click. Look for these icons Sustainability throughout this document. 6 Company Profile KEY Issues & PRIORities KEY Issues & PRIORities 90 Assessment and Audit Summary KEY Issues & PRIORities 94 Conflict-Free Minerals Mouse over or click for interactive content. 10 Strategy and Management Approach 43 Climate Change and Energy Icons appear in blue or white. Efficiency 96 Supplier Diversity 14 Stakeholder Engagement 48 Water Conservation 97 Supplier Environmental Impact 18 Key Sustainability Challenges Click to play video. and Opportunities 52 Waste: Reduce, Reuse, Recycle 99 Performance Summary and Goals 54 Reducing Air Emissions 19 Financial Results and 101 Contributions to Society Click to get more details. Economic Impact 55 Energy-Efficient Performance and Product Ecology 102 Our Approach to Creating < Previous View 21 Performance Summary, Social Impact Click on this link to quickly return to the Recognitions, and Goals 57 Applying Technology to page you last viewed in the report. Environmental Challenges KEY Issues & PRIORities 25 Looking Ahead 59 Performance Summary and Goals 104 Education Transformation Recommended Software GOVERNANCE FACTORS 110 Community Engagement • Adobe Acrobat*, Version 7.0 and above. SOcial FactORS and Employee Volunteerism 26 Governance, Ethics, and Public Policy • QuickTime* 27 Our Approach to Responsible 62 Our People 114 Entrepreneurship Business Practices 63 Our Approach to Empowering and Social Innovation Note: References to “Intel” throughout this Employees 117 Empowering Girls and Women document pertain to Intel Corporation. Intel KEY Issues & PRIORities Foundation is a separate entity. KEY Issues & PRIORities 119 Technology Innovation 27 Governance and Business Ethics in Healthcare 68 Career Growth and Development 30 Respecting Human Rights 120 Performance Summary and Goals 33 Public Policy and Advocacy 70 Communication and Recognition 121 Appendix 35 Political Accountability 71 Diversity and Inclusion 122 About This Report/Approach 36 Performance Summary and Goals 75 Compensation, Benefits, and Work/Life Effectiveness to Assurance 80 Health and Safety, and 123 GRI Content Index Employee Wellness 131 UN Global Compact— 83 Performance Summary and Goals Communication on Progress 132 Ernst & Young Review Report 5 IntegRated Value AppROacH 3 Letter From Our CEO 5 Our Business and Integrated Our Business Value Approach Company Profile and Integrated KEY Issues & PRIORities Value Approach Strategy and Management Approach Stakeholder Engagement Key Sustainability Challenges and Opportunities Financial Results and Economic Impact Performance Summary, Recognitions, and Goals Looking Ahead GOVERnance FactORS 26 Governance, Ethics, and Public Policy EnviRONMental FactORS 37 Environment SOcial FactORS 62 Our People 84 Supply Chain 101 Contributions to Society AppendiX 122 About This Report/Approach Key Links to Assurance 123 GRI Content Index We strive to make the best silicon and technology products in Intel Values 131 UN Global Compact— the world, and through their application, to create a better future. Intel Company Information Communication on Progress Intel 2011 Annual Report 132 Ernst & Young Review Report We have embedded corporate responsibility and sustainability into and Form 10-K our vision and strategy, management systems, and long-term goals. Intel 2012 Proxy Statement We believe that this integrated approach creates value for Intel as Intel Investor Relations well as our stockholders, customers, and society. Intel Sponsors of Tomorrow™ Access the Report Builder Ultrabook™ Inspired by Intel 2011 Corporate Responsibility Report www.intel.com/go/responsibility 6 IntegRated Value AppROacH 3 Letter From Our CEO Company Profile Intel Business Organization and Operating Segments 5 Our Business and Integrated Value Approach