Intel 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 e o 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 o v e R v I e w e n v ir o n m e n tal f A C T o R s 73 Supply Chain 102 Investing in Higher Education, Research, and Entrepreneurship 5 Corporate Profile 31 Environment 74 Our Approach to Supply Chain Responsibility 104 Technology and Access 32 Our Approach to 8 Our Approach to Corporate Environmental Sustainability 77 2009 Assessment and Audit 106 Performance Summary & Goals Responsibility Summary 35 Climate Change and Energy 9 An Integrated, Strategic Approach A pp e n d I x Efficiency 77 Supplier Diversity 108 About This Report/Approach 10 Management and Decision-Making 78 Sustainable Purchasing 41 Water Conservation to Assurance 11 Stakeholder Engagement 80 Extractives and 45 Waste: Reduce, Reuse, Recycle 109 GRI Content Index 15 Sustainability Trends: Key Conflict-Free Metals 47 Reducing Air Emissions 116 UN Global Compact—Communication Challenges and Opportunities 81 Performance Summary & Goals 48 Product Ecology on Progress 2009 16 Performance Summary 50 Performance Summary & Goals 82 Community 17 Corporate Responsibility Goal 83 Our Approach to Community Summary s o cial f A C T o R s Engagement 18 Awards and Recognitions 53 Workplace About This document 85 Intel Involved and Skills-Based 54 Our Approach to Empowering Look for these icons throughout this document G o v e R n A n C e A n d Volunteering to learn more. Our Employees e C o n o m ic f A C T o R s 89 Collaborating to Solve Community 19 Financial Performance 58 Career Growth and Development Challenges with Technology Click on image to watch video. and economic Impact 60 Communication and Recognition 90 The Intel Foundation and Click on icon for more information. ? 20 2009 Financial Performance 61 Workforce Diversity Community Giving The information contained here is 22 Economic Impact 65 Compensation, Benefits, 93 Performance Summary & Goals 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 Recommended software and Employee Wellness 95 Our Approach to Improving 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 mouse over numbers Intel by the numbers. for more details. o v e R v I e w 3 Letter From Our CEO o v e R v I e w Corporate Profile 5 Corporate Profile 8 Our Approach to Corporate Responsibility Intel is committed to pushing the boundaries of technology to make the lives of G o v e R n A n C e A n d people everywhere more exciting, fulfilling, and manageable. we enable innovation e C o n o m ic f A C T o R s 19 Financial Performance across a spectrum of computing devices by building successive generations of and Economic Impact microprocessors that can cost less to manufacture, have improved performance 24 Governance, Ethics, and Public Policy and energy efficiency, and offer more capabilities. e n v ir o n m e n tal f A C T o R s 31 Environment s o cial f A C T o R s 53 Workplace 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 ? Click on icon to view locations of Intel’s wafer fabrication facilities (fabs) and assembly and test sites around the world. Key Corporate Links % % > Billion Intel 2009 Annual Report 90 64 2 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. 5 o v e R v I e w 3 Letter From Our CEO o v e R v I e w 5 Corporate Profile Intel is the world’s largest semiconductor chip maker, based on revenue. Inc. accounted for 17% of our net revenue. No other customer accounted 8 Our Approach to Corporate We develop advanced integrated digital technology products, primarily for more than 10% of our net revenue. In 2009, 80% of our revenue came Responsibility integrated circuits, for industries such as computing and communications. from customers outside the Americas. G o v e R n A n C e A n d We serve customers in more than 120 countries, and at fiscal year-end e C o n o m ic f A C T o R s 2009 had 79,800 employees in more than 50 countries. To learn more operating segments 19 Financial Performance about Intel’s history of innovation, visit our Corporate Timeline web site. At the end of 2009, we reorganized our business to better align our major and Economic Impact product groups around the core competencies of Intel® architecture and 24 Governance, Ethics, and Public Policy Products our manufacturing operations. After the reorganization, we have nine Our products include microprocessors, chipsets, motherboards, and wire- operating segments. e n v ir o n m e n tal f A C T o R s less and wired connectivity products, as well as platforms that incorporate 31 Environment Intel operating segments these components.

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