2008 Corporate Responsibility Report What can we make possible? A world of possibilities. LETTER FROM OUR CEO Throughout our 40-year history, Intel has pushed the boundaries of innovation, creating products that have fundamentally changed the way people live and work. But what we make possible goes well beyond our product roadmap. By working with others, we are finding opportunities to apply our technology and expertise to help tackle some of the world’s greatest challenges—from climate change and water conservation to education quality and the digital divide. Our commitment to corporate responsibility is unwavering, even during economic downturns. In education, we surpassed the milestone of training 6 million teachers worldwide through the Taking a proactive, integrated approach to managing our impact on local communities and the Intel® Teach Program. In addition, we partnered with governments to support the advancement environment not only benefits people and our planet, but is good for our business. Making of their education programs, and helped put affordable, portable, Intel-powered classmate PCs corporate responsibility an integral part of Intel’s strategy helps us mitigate risk, build strong into the hands of students in close to 40 countries. We announced a joint business venture with relationships with our stakeholders, and expand our market opportunities. Grameen Trust, using a “social business” model aimed at applying tech nology to address issues related to education, poverty, and healthcare in developing countries. While I am proud of the many recognitions that we have received—including our number one spot on Corporate Responsibility Officer magazine’s 100 Best Corporate Citizens list for At the heart of our commitment to corporate responsibility are Intel’s more than 80,000 2008—we continue to push ourselves to do more. For over a decade, we have set formal goals employees. Early in 2008, I challenged them to give 1 million hours of volunteer service to local in our primary corporate responsibility focus areas, helping to drive accountability and continuous communities in celebration of our 40th anniversary. In true Intel style, our employees didn’t just improvement. In 2008, we set new five-year environmental goals in key areas such as emissions meet the goal, they surpassed it in early December, and by the end of the year they had donated reduction and water conservation. And to help focus all of our employees on environmental 1,346,471 hours to more than 5,000 schools and nonprofit organizations around the world. sustainability, we aligned a portion of our employees’ compensation with environmental criteria I believe this achievement—over 1 million hours of service in a single year—captures the essence for the first time. of corporate responsibility at Intel. It’s an example of the commitment, energy, and innovative In 2008, we became the largest purchaser of green power in the U.S., according to the U.S. spirit that are synonymous with the Intel name. Quite simply, we do what we say and help make EPA. We also built the first solar installations at Intel facilities, and our venture capital arm, Intel the impossible possible. Capital, invested $100 million to support firms that are developing solar technologies. With the 2008 release of the Intel® Core™ i7 processor, we continued to demonstrate leadership in driv- ing both high levels of performance and energy efficiency in our products. In addition, working diligently on water management, we reduced our fresh-water needs by 3 billion gallons per Paul S. Otellini year. We are making progress, but we continue to face longer term challenges in reducing our President and Chief Executive Officer absolute environmental footprint due to our growth and the increasing complexity of our manu- facturing processes. Addressing these challenges will be a strategic priority in the coming years. ABOUT THIS REPORT Intel has provided public reports on our environmental, health, and safety (EHS) performance since 1994, and we have produced a Corporate Responsibility Report annually since 2001. Report Scope and Profile Approach to Report Assurance With the Intel 2008 Corporate Responsibility Report, we aim to provide stakeholders with a The information in our Corporate Responsibility Report is subject to internal reviews and, for balanced view of our corporate responsibility strategy and performance for Intel’s worldwide some content, external reviews. On a regular basis, we validate the management systems and operations during fiscal year 2008 (ended December 27, 2008). Our previous report was processes used to collect the data. published in May 2008. We have maintained a multi-site ISO 14001 certification for our manufacturing locations since We prepared this report using the Global Reporting Initiative* (GRI) G3 Sustainability Reporting 2001, which requires independent third-party audits at many of our sites each year. Intel Ireland Guidelines and self-declare the report to GRI Application Level B. A GRI Content Index is provided is also accredited to the IS 393 Energy Management Standard certification. at the end of the report. Additional information about Intel’s operations and financial statements As a member of the U.S. Environmental Protection Agency (EPA) Climate Leaders program, our is available in our 2008 Annual Report and Form 10-K. GHG emissions data is reviewed against the Climate Leaders GHG Inventory Guidance, which We produce our Corporate Responsibility Report in Portable Document Format (PDF). A printed includes reviews of our emissions inventory data and our progress in reaching our GHG emissions executive summary of the report is available by request. Our sites around the world also trans- goal. As part of our membership in the Chicago Climate Exchange, our annual emissions reports late and customize the content of the executive summary for local stakeholders. For a high-level are verified by the Financial Industry Regulatory Authority. Finally, our operations in Ireland are overview of corporate responsibility, supporting documents, and past reports, visit our Corporate covered by the European Union Emissions Trading Scheme. Responsibility Report web site. Each year, we assess our approach to report assurance, examining current views on methods The Corporate Responsibility Report does not include performance information for Intel’s joint and types of assurance available. For our 2004–2007 reports, we worked with a team of MBA ventures or firms included in Intel Capital’s investment portfolio, unless specified. This year’s students, under the guidance of a professor, to provide external assurance, using the AA1000 report does not reflect any significant changes in reporting scope compared to our previous Materiality standard. This model created a unique educational experience for students interested report, with the exception of two divestitures in early 2008 and a change in our reporting in careers in corporate responsibility, while providing valuable feedback to improve our reporting. method for our greenhouse gas emissions (see the Environment section of this report). For example, as a result of recommendations from the 2007 assurance statement, we have added goals and performance discussion to each section of the report and added a new section Principles and policies apply to all officers and employees of Intel and its subsidiaries, unless on green purchasing. For the 2008 report, based on discussions with stakeholders and the fact otherwise noted. EHS data includes widely accepted parameters and units. We use the that we did not make significant changes in report content or scope compared to 2007, we Greenhouse Gas (GHG) Protocol to calculate our GHG emissions. Financial data is presented opted not to have an assurance statement prepared. Rather, we decided to conduct a review of in U.S. dollars. external assurance options to determine the assurance method and schedule that will yield the Send questions, comments, or feedback to Suzanne Fallender, Manager, Corporate Responsibility, most value for our stakeholders for our 2009 Corporate Responsibility Report. Intel Corporation, 5000 W. Chandler Blvd., CH7-301, Chandler, AZ 85226 USA. You can also use our web-based feedback form to contact Intel’s Corporate Responsibility team. CONTENTS 6 Management Strategy 31 Environment 74 Community and Analysis 32 Managing Environmental 75 Evaluating Community 7 Strategy and Corporate Performance Needs and Impact Responsibility 33 Climate Change 76 Intel Involved—1 Million 8 Sustainability Trends: Hours of Volunteer Service 38 Driving Sustainability Challenges and Opportunities in Our Operations 79 Collaborating to Solve 1 0 Corporate Responsibility Community Challenges 44 Responsible Product Design Management with Technology 46 Inspections and Compliance 1 1 Performance Summary 80 The Intel Foundation 47 2008 Performance Summary and Community Giving 1 2 Corporate Responsibility Goal Summary 48 2012 Environmental Goals 83 2008 Performance Summary 13 Selected CSR Awards 83 2009 Goals 49 Workplace 14 Corporate Profile 50 Workforce Data by Region 84 Education and Economic Impact 52 Workforce Diversity 85 Enabling Tomorrow’s Innovation 15 Products 55 Career Growth and 86 Improving Teaching and 15 Customers Development Learning with Technology 15 Operating Segments 56 Employee Recognition 87 Inspiring Learning Beyond the Classroom 1 6 Research and Development 57 Open and Honest Communication 87 Sparking Student Interest in 1 7 Global Locations 58 Compensation and