Climate Change Data

INTEL CORPORATION

Climate Impact & Sustainability Data (2023)

Reporting Period: 2023

Environmental Metrics

Renewable Energy Share:99%

ESG Focus Areas

  • Corporate Responsibility
  • Sustainability

Environmental Achievements

  • Reached 99% renewable electricity usage globally in 2023
  • Conserved 1.6 billion kWh of energy cumulatively since 2020
  • Conserved and restored 35.9 billion gallons of water and enabled restoration of 9.6 billion gallons of water to local watersheds since 2020
  • Achieved 5% of waste to landfill

Social Achievements

  • Achieved gender pay equity globally
  • Maintained race/ethnicity pay equity in the US
  • Employee turnover rate of 5.6%
  • Intel RISE Technology Initiative funding projects in areas such as using technology to improve health and safety, making technology more inclusive while expanding digital readiness, and carbon-neutral computing to help address climate change
  • Employees and retirees volunteered 3.8 million hours over the past four years

Governance Achievements

  • Linked a portion of executive and employee performance bonus to year-over-year improvements of employee experience survey results
  • Linked a portion of executive and employee compensation to diversity and inclusion metrics
  • Published inaugural green bond report
  • Published first Climate Transition Action Plan

Climate Goals & Targets

Long-term Goals:
  • Net zero emissions by 2050
Medium-term Goals:
  • Achieve net-zero greenhouse gas emissions in operations by 2040
  • Achieve net-zero upstream Scope 3 greenhouse gas emissions by 2050
  • Reduce greenhouse gas emissions by 10% on an absolute basis from a 2019 baseline by 2030
  • Conserve 4 billion kWh of energy this decade
  • Achieve net positive water globally, conserving 60 billion gallons of water this decade
  • Zero waste to landfill; circular economy strategies for 60% of manufacturing waste streams
  • Increase global annual spending with diverse suppliers to reach $2.0 billion by 2030
Short-term Goals:
  • Reduce water consumption by 12.0 billion gallons in 2023
  • Reduce Scope 1 and 2 greenhouse gas emissions by 130,000 metric tons carbon dioxide equivalent compared to 2022
  • Reach 95% renewable electricity use globally in 2023

Environmental Challenges

  • Lower revenue in CCG, DCAI, and NEX
  • Lower GAAP gross margin from lower revenue, higher unit cost, and higher excess capacity charges
  • Lower GAAP EPS from lower gross margin and absence of one-time gains recognized in 2022
  • Lower operating cash flow primarily driven by lower net income
  • Intense competition across product portfolio
  • Limited experience in the third-party foundry business
  • Significant, long-term and inherently risky investments in R&D and manufacturing facilities
  • Changes in product demand
  • Macroeconomic conditions and geopolitical tensions and conflicts
  • Risks associated with the evolving market for products with AI capabilities
  • Complex global supply chain
  • Product defects, errata, or other product issues
  • Security vulnerabilities in products
  • Increasing and evolving cybersecurity threats and privacy risks
  • IP risks including related litigation and regulatory proceedings
  • Need to attract, retain, and motivate key talent
  • Sales-related risks
  • Significant portion of revenue from a limited number of customers
  • Risks related to transactions with government entities
  • Debt obligations
  • Significantly reduced return of capital to stockholders
  • Laws and regulations
  • Fluctuations in currency exchange rates
  • Changes in effective tax rate
  • Catastrophic events
  • Environmental, health, safety, and product regulations
  • Corporate responsibility matters
Mitigation Strategies
  • Disciplined expense management
  • Internal foundry model
  • Prioritizing capital investments
  • Open ecosystem to foster growth and technology innovations
  • Diversified product strategy across nodes
  • Advanced packaging capabilities with disaggregated silicon
  • Globally diverse supply chain
  • Strategically located supply hubs
  • Smart Capital approach
  • Government incentives
  • Customer commitments
  • External foundries
  • Robust programs to educate and engage suppliers
  • Collaboration with other companies and industry initiatives
  • Emissions reduction strategies
  • Investments in renewable electricity
  • Process and equipment optimization
  • Energy conservation
  • Circular economy and waste management strategies
  • TCFD framework for climate-related disclosures
  • Integrated approach to address climate change
  • Robust cybersecurity program
  • Processes to assess, identify, manage, and address material cybersecurity threats and incidents
  • Security requirements imposed upon suppliers

Supply Chain Management

Responsible Procurement
  • Responsible Business Alliance
  • Intel Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks
  • Drought
  • Wildfires
  • Storms
  • Sea-level rise
  • Flooding
Transition Risks
  • Increased manufacturing costs associated with air pollution requirements
  • Increased energy costs as a result of carbon pricing
Opportunities
  • Development of energy-efficient products
  • Internet of Things solutions

Reporting Standards

Frameworks Used: TCFD, GRI, SASB