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2016 CORPORATE RESPONSIBILITY REPORT A sustainably sourced light show installation built with Intel® technology and recycled materials. intel.com/responsibility Introduction Our Business Environment Supply Chain Diversity Social Impact Appendix TABLE OF CONTENTS Introduction 3 Supply Chain Responsibility 47 Appendix 84 Corporate Responsibility at Intel 3 Strategy and Management Approach 49 About This Report 85 Letter from our CEO 4 Combating Forced and Bonded Labor 54 Independent Accountant’s Review Report 86 Supplier Environmental Impact 55 Intel’s Support of the UN Sustainable 88 Our Business 5 Development Goals Responsible Mineral Sourcing 56 Company Profile 6 Intel 2016 Water Use by Location 89 Integrated Strategy, Governance, and Ethics 14 Diversity and Inclusion 58 2016 Environmental, Health, 91 Respecting Human Rights 18 Strategy and Management Approach 60 and Safety Violations Investing in Our People 20 Our Workforce and Culture: Inclusion and Equity 63 Top 100 Manufacturing, Logistics, 92 and Services Suppliers Stakeholder Engagement 24 Supplier Diversity and Inclusion 66 United Nations Global Compact – 93 Key Corporate Responsibility Challenges 26 Investing in a Diverse Technology Ecosystem 69 Communication on Progress 2016 and Opportunities Building Pathways into the Technology Industry 70 Applying Technology to Solve 27 Global Challenges Social Impact 71 For a high-level overview of Intel’s approach to Corporate Performance Summary and Goals 29 Strategy and Management Approach 73 Responsibility, supporting documents and data, past reports, Intel® Innovation Generation 74 Environmental Sustainability 32 and to customize a report with the sections you choose, visit Make Tomorrow 76 our Corporate Responsibility and Report Builder websites. Strategy and Management Approach 34 Future Skills 77 Employee Engagement 36 We prepared this report using the Global Reporting Initiative* Higher Education 78 Climate and Energy 37 (GRI) Sustainability Reporting Guidelines, and self-declare the She Will Connect 79 Water Management 42 report to be prepared in accordance with the GRI Standards: Intel Foundation 80 Waste Management 44 Comprehensive option. Our GRI Content Index is provided on Employees Changing the World 82 Greener Buildings and the Internet of Things 45 our Report Builder website. Product Ecology 46 Table of Contents 2 intel.com/responsibility Introduction Our Business Environment Supply Chain Diversity Social Impact Appendix orporAte repot t $ 122 1. $ $ corort nd emplo nt it intd in dirit Int oundtion ountr dir focud tcnoo critabl iin our uir crr twa ror 1. $ 3.5 5 4. on in ric in rturnd to gallon o o urcd rn or, rcd trou orr uir tr conrd uint to o t Int i inc rut inc or u nd o o Connct ror o our or on t or u to dt iu o orcd nd ondd or BUILDING A BETTER WORLD IS OUR BUSINESS What Corporate Responsibility Means at Intel Intel has a long-standing commitment to corporate responsibility. We set ambitious goals and make strategic investments to drive improvements in environmental sustainability, Intel is empowering people to solve the world’s biggest challenges. We are using supply chain responsibility, diversity and inclusion, and social impact. We believe our technology to empower more people to do more and contribute to the well-being of focus on corporate responsibility—built on a strong foundation of transparency, others and the planet. Technology has the power to connect people to new information governance, and ethics—creates value for Intel and our stockholders by helping us and data, greater opportunities and to one another. More connections means more mitigate risks, reduce costs, build brand value, and identify new market opportunities. diverse ideas, more realized potential, and more sustainable solutions around the world. Connected by innovative thinking and technology, we can make the most A foundational element of our corporate responsibility approach is our commitment amazing experiences possible. to transparency. We published our first voluntary environmental report in 1994, and over the past 20 years have continued to evolve our reporting to meet the needs of our stakeholders. This year’s report provides a comprehensive summary of our management approach and performance for 2016. Introduction 3 intel.com/responsibility Introduction Our Business Environment Supply Chain Diversity Social Impact Appendix 2016 was a year of tremendous change for Intel. We Supply Chain Responsibility. We significantly increased the percentage of our suppliers A LETTER accelerated our evolution from a PC company to one who meet our advanced expectations in ethics, environmental performance, labor, that powers the cloud and billions of smart, connected and human rights practices. We also continued our work to establish a responsible FROM OUR CEO computing devices. We restructured the company while mineral supply chain for Intel and our industry. launching exciting products and investing for growth. Diversity and Inclusion. We made progress toward our goal—supported by a $300 Our efforts help position Intel as the driving force behind million investment—to achieve full representation of women and underrepresented the data revolution that is transforming industries and minorities in our U.S. workforce by 2020. Our inclusive hiring practices and programs enabling new experiences like artificial intelligence and to improve diversity across the technology industry have created strong momentum autonomous driving. toward achieving our goal. While the world and our company are changing, our Social Impact. We took important steps to ensure that the next generation of commitment to corporate responsibility remains as strong workers and innovators is diverse, inclusive, and ready to succeed in our rapidly as ever. We deeply integrate corporate responsibility changing digital world. Our new Intel® Innovation Generation initiative aims to into our business in ways that create value for Intel and empower young people around the world through increased access to technology our stockholders. We see amazing potential to empower skills and innovation experiences. more people through our technology and to harness the power of data to help address society’s most complex As we continue to evolve our business, innovating and delivering dependable products issues-from climate change and energy efficiency, to that enable amazing experiences, we remain committed to transparency and making economic empowerment and human rights. the decisions that will allow our company, our people, and the planet to thrive. I am proud that at Intel our words and commitments are backed by actions and developed Throughout 2016, we invested in new initiatives to through input from our stakeholders. As you read this report summarizing our 2016 catalyze positive change for Intel, our industry, and performance and our ambitious goals for the future, we welcome your feedback society. We advanced progress against ambitious goals and collaboration. in multiple areas: Environmental Sustainability. We continued to invest in conservation actions and new onsite alternative energy projects that enable us to drive toward the lowest environmental footprint possible in support of our 2020 goals, and worked to empower others to use Intel® BRIAN KRZANICH, Chief Executive Officer technology to reduce their own environmental impact. Intel Corporation Letter from CEO 4 intel.com/responsibility Introduction Our Business Environment Supply Chain Diversity Social Impact Appendix TRANSFORMING OUR BUSINESS 5 intel.com/responsibility Introduction Our Business Environment Supply Chain Diversity Social Impact Appendix SOLVING GLOBAL CHALLENGES COMPANY PROFILE WITH BIG DATA We are a world leader in the design and manufacturing of essential products and technologies that power the cloud and an increasingly smart, connected world. Intel delivers computer, networking, and communications platforms to a broad set of customers including original equipment manufacturers (OEMs), original design manufacturers (ODMs), cloud and communications service providers, as well as industrial, communications, and automotive equipment manufacturers. We are expanding the boundaries of technology through our relentless pursuit of Harnessing the capability of the cloud, the ubiquity of the Internet of Things, Moore’s Law and computing breakthroughs that make amazing experiences possible. the latest advances in memory and programmable solutions, and the promise of always-on 5G connectivity, Intel is empowering people to build a better world. Intel is headquartered in Santa Clara, California and incorporated in the state of Delaware. 06 YEES WORLDWIDE 00 % 0% YEES LOCA 98 OF THE CLOUD ABOUT INTEL RUNS ON INTEL Company Profile p6 Integrated Strategy, Governance, and Ethics p14 Respecting Human Rights p18 Investing in Our People p20 Stakeholder Engagement p24 Key Corporate Responsibility Challenges and Opportunities p26 % Applying Technology to Solve Global Challenges p27 OF THE WORLD’s supercomputers Performance Summary and Goals p29 90 RUN ON INTEL Our Business 6 intel.com/responsibility Introduction Our Business Environment Supply Chain Diversity Social Impact Appendix Our Vision and Strategy Our vision is if it is smart and connected, it is best The Cloud and Data Center. We believe that the most important trend shaping the future of with Intel. the smart and connected world is the cloud. We design and optimize our products to deliver industry-leading performance and best-in-class total