PRODUCT STEWARDSHIP “ Our success depends upon recruiting and cultivating talented people. Intel is known for its technology, but the people behind the technology are what make the company great. We are committed to helping our people get the most out of their 2015 CORPORATEcareers—from recruitment through retirement” RESPONSIBILITY REPORT – Richard Taylor Corporate Responsibility Report Introduction Business Product People Environment Supply Chain Social Impact Appendix intel.com/responsibility Table of Contents Introduction 3 Our People 30 Social Impact 66 Letter From Our CEO 4 Our Workforce 32 Social Impact and Business Value 68 Management Approach 32 Management Approach 68 Our Business 5 Health and Safety 33 Technology Access and Empowerment 69 Company Profile 7 Diversity and Inclusion 34 Education Transformation 73 Ethics, Culture, and Values 10 Growth and Development 37 Innovation and Entrepreneurship 73 Public Policy and 12 Political Accountability Compensation and Benefits 39 Empowering Our People 75 Strategy and Governance 14 Performance Summary and Goals 41 Performance Summary and Goals 76 Respecting Human Rights 18 Environmental Sustainability 43 Appendix 77 Performance Summary and Goals 20 Our Environmental Footprint 45 About This Report 78 Product Stewardship 23 Management Approach 46 How to Use This Document 78 Our Product Footprint 25 Climate Change 48 Report Scope and Profile 79 Management Approach 25 Energy Use 49 Independent Accountants’ 80 Review Report Product Ecology 26 Water 51 Awards and Recognition 82 Energy Efficiency 27 Waste 52 Countries with More than 50 Employees 83 Privacy and Cybersecurity 27 Performance Summary and Goals 53 Stakeholder Engagement Activities 84 Solving Global Challenges 28 with Technology Supply Chain Responsibility 56 Intel 2015 Water Use by Location 86 Our Global Supply Chain 58 Performance Summary and Goals 29 2015 Environmental, Health, 87 Management Approach 59 and Safety Violations Supplier Diversity 61 Top 75 Production, Capital, 88 and Logistics Suppliers Supplier Environmental Impact 63 United Nations Global Compact – 89 Conflict-Free Products 63 Communication on Progress 2015 Performance Summary and Goals 64 GRI Content Index 90 CONTENTS 2 Corporate Responsibility Report Introduction Business Product People Environment Supply Chain Social Impact Appendix intel.com/responsibility What Corporate Responsibility Means at Intel Intel has a long-standing commitment to corporate responsibility. We believe that this focus creates value for Intel and our stakeholders. It helps us manage our business more effectively and identify ways to apply our technology and expertise to benefit the environment and society, which in turn helps us mitigate risks, reduce costs, protect brand value, and identify market opportunities. This year’s report provides a comprehensive summary of our management approach and corporate responsibility performance for 2015. Key focus areas include: • Diversity and inclusion, including our new 2020 goal and investment commitment • Environmental sustainability, including product stewardship issues • Supply chain responsibility, including our conflict-free strategy OUR VISION IS IF IT IS SMART • Social impact initiatives, including our focus on technology access and empowerment AND CONNECTED, IT IS BEST A foundational element of our corporate responsibility approach is our commitment to transparency. We published our first voluntary environmental report in 1994, and over the past 20 years have continued to evolve our WITH INTEL. reporting to meet the needs of our stakeholders. The only thing more amazing than our technology is what the world does with it. INTRODUCTION 3 Corporate Responsibility Report Introduction Business Product People Environment Supply Chain Social Impact Appendix intel.com/responsibility WE EXPAND THE BOUNDARIES OF TECHNOLOGY TO MAKE THE MOST AMAZING EXPERIENCES POSSIBLE. the U.S. for eight years. Due to the increasing complexity Through multiple education and digital access initiatives, of our manufacturing processes, we face ongoing we are enabling young people to acquire the skills challenges in our efforts to meet our aggressive 2020 they need to connect to a world of health, economic, hazardous waste recycling and water use goals, but and entrepreneurship opportunities. Products such as are committed to looking for innovative solutions in the new low-power Intel® Curie™ module are enabling In 2015, we celebrated the 50th anniversary of Moore’s these areas. young makers to become the next generation of Law, which paved the way for Intel to build the ever social innovators. And through our Intel® She Will I’m proud that we are on track to achieve our 2016 faster, smaller, and more affordable transistors that Connect program, we made progress toward our goal to validate that our broader product base is free of drive our modern world. This anniversary provided goal of connecting 5 million women by 2020 to new tantalum, tin, tungsten, or gold derived from sources that us with the opportunity to reflect upon the increasingly opportunities through technology. transformational role that our technology plays in benefit armed groups that exploit mine workers to fund addressing global challenges and empowering people violence in the Democratic Republic of Congo or adjoining This report provides a summary of our 2015 performance around the world. Beyond the impact of our products, regions. This achievement is the result of our eight-year and the ambitious goals we have set for our future. Our new ambitious goals and strategic investments effort to develop systems to ensure that these so-called commitment to corporate responsibility is as strong as in corporate responsibility are helping us drive “conflict-minerals” do not enter our supply chain. ever. We welcome your feedback so that we can continue improvements in environmental sustainability, to improve our performance. We launched our new Diversity and Inclusion initiative supply chain responsibility, diversity and inclusion, in early 2015, setting a bold hiring and retention and social impact. goal to achieve full representation of women and Intel researchers are working on multiple environmental underrepresented minorities in Intel’s U.S. workforce initiatives aimed at conserving resources, cutting by 2020. We committed $300 million to support this emissions, and boosting efficiency in transportation goal and accelerate diversity and inclusion both at Brian Krzanich systems, homes, buildings, and cities. We continue to Intel and across the technology industry. I’m incredibly Chief Executive Officer make significant investments in resource conservation proud that a thorough compensation analysis in 2015 Intel Corporation and efficiency projects at our sites around the world, and showed that we are at 100% gender pay parity for U.S. have remained the largest purchaser of green power in employees across job types and levels. CEO LETTER 4 Corporate Responsibility Report Introduction Business Product People Environment Supply Chain Social Impact Appendix intel.com/responsibility OUR BUSINESS “We expand the boundaries of technology to make the most amazing experiences possible.” —Brian Krzanich, Chief Executive Officer OUR BUSINESS 5 Corporate Responsibility Report Introduction Business Product People Environment Supply Chain Social Impact Appendix intel.com/responsibility Highlights Since 2008, we have linked a portion of every employee’s variable compensation—from front-line staff to our CEO—to the achievement of corporate responsibility goals. In 2015, the Ethisphere* Institute once again named Intel to its list of the World’s Most Ethical Companies. We reported full-year 2015 revenue of $55.4 billion, including record revenue in our data center, Internet of Things, and memory businesses. In This Section Company Profile Ethics, Culture, and Values Our strategy is to offer complete and connected platform computing solutions, and to continue to Public Policy and Political drive “Moore’s Law.” Accountability Strategy and Governance Respecting Human Rights We primarily manufacture our products in our own facilities, which enables us to optimize Performance Summary performance, shorten time to market, and and Goals scale new products more rapidly. OUR BUSINESS 6 Corporate Responsibility Report Introduction Business Product People Environment Supply Chain Social Impact Appendix intel.com/responsibility • enable smart and connected devices through continued Business Organization and Operations Company Profile development of industry-leading communications and Intel is headquartered in Santa Clara, California and connectivity technology; We are a leader in the design and manufacturing of incorporated in the state of Delaware. As of December 26, advanced integrated digital technology platforms. • expand platforms into adjacent market segments to bring 2015, we had 107,300 employees worldwide, with A platform consists of a microprocessor and chipset, compelling new platform solutions and user experiences approximately 51% of those employees located in the U.S. and may be enhanced by additional hardware, software, to form factors across the compute continuum; and services. We sell these platforms primarily to We have 190 facilities located in more than 60 countries. • increase the utilization of our investments in intellectual original equipment manufacturers (OEMs), original Our principal executive offices are located in the U.S. property and research and development across all design manufacturers