Intel & Water Conservation

Suzanne FallenderDirector, CSR Strategy & Communications

Intel Corporation

Canadian Water SummitJune 17, 2010

Copyright © 2010 Intel Corporation. All rights reserved. Intel and the Intel logo are trademarks or registered trademarks of Intel Corporation or its subsidiaries in the United States and other countries. *Other names and brands may be claimed as the property of others.

Integrated Approach to Corporate Integrated Approach to Corporate ResponsibilityResponsibility

Sources: Intel information based on multiple frameworks, including McKinsey Sources: Intel information based on multiple frameworks, including McKinsey and Boston College Center for Corporate Citizenship, “How Virtue Creates and Boston College Center for Corporate Citizenship, “How Virtue Creates

Value for Business and Society”, April 2009Value for Business and Society”, April 2009

REVENUEREVENUE OPERATIONSOPERATIONS RISKRISKMANAGEMENTMANAGEMENT BRANDBRAND

Growth andInnovation

Cost Savings andContinuous

ImprovementLicense to

Operate andGovernance

Reputation andGoodwill

“Continuing our commitment to the highest performance in all we do — from product innovation to corporate responsibility — is good business.”

- Paul Otellini, Intel President & CEO

3Copyright © 2010 Intel Corporation. All rights reserved. Intel and the Intel logo are trademarks or registered trademarks of Intel Corporation or its subsidiaries in the United States and other countries. *Other names and brands may be claimed as the property of others.

Intel’s Approach to Responsible Water Management Site selection Short and long-term environmental

goals Reduce water demand at source Continuous monitoring and reporting Reuse & conservation in new Fab

design UPW efficiency Tailor recycling & conservation

measures to local conditions Proactive transparency and water

footprinting

4Copyright © 2010 Intel Corporation. All rights reserved. Intel and the Intel logo are trademarks or registered trademarks of Intel Corporation or its subsidiaries in the United States and other countries. *Other names and brands may be claimed as the property of others.

Governance and Oversight

Board-level responsibility Eco Management Review

Committee Intel Code of Conduct Link compensation with

environmental factors Stakeholder engagement

and SRI outreach trips

5Copyright © 2010 Intel Corporation. All rights reserved. Intel and the Intel logo are trademarks or registered trademarks of Intel Corporation or its subsidiaries in the United States and other countries. *Other names and brands may be claimed as the property of others.

Policy and Goals Setting public goals

– Reduce water use per chip1 below 2007 levels by 2012

Intel Water Policy– Shareholder proposal and

dialogue– Human right to water

tenets: safety, sufficiency, transparency, physical accessibility, responsibility

1 Assuming a typical chip size of approximately 1cm2 (chips vary in size depending on the specific product.)

6Copyright © 2010 Intel Corporation. All rights reserved. Intel and the Intel logo are trademarks or registered trademarks of Intel Corporation or its subsidiaries in the United States and other countries. *Other names and brands may be claimed as the property of others.

Reporting & Transparency

9th annual Corporate Responsibility Report – May 2010 (GRI G3 report)

Integration into Annual Report/Form 10-K

Water reporting:– Absolute and normalized– By major facility– By “scope” – direct, energy use,

tier-1 suppliers– Local conservation initiatives and

investments

7Copyright © 2010 Intel Corporation. All rights reserved. Intel and the Intel logo are trademarks or registered trademarks of Intel Corporation or its subsidiaries in the United States and other countries. *Other names and brands may be claimed as the property of others.

Water reporting

8

Arizona Case Study

Ultra Pure Ultra Pure WaterWater

IrrigationIrrigation

FABsFABs

Cooling TowersCooling Towers

Air ScrubbersAir Scrubbers

Wastewater Wastewater TreatmentTreatment

Publicly Owned Treatment Works

City Water

Reclaimed WaterReclaimed Water

Chandler RO Chandler RO Treatment Treatment PlantPlant

Aquifer Aquifer RechargeRecharge

EvaporationEvaporationPondsPonds

City Water Demand (MGD)

-1.5-1.57.7

Net 2.5Net 2.5-1.1-1.1““Toolbox” Toolbox”

TechnologiesTechnologies

Internal ReclaimInternal Reclaim

-2.6-2.6--

-

9Copyright © 2010 Intel Corporation. All rights reserved. Intel and the Intel logo are trademarks or registered trademarks of Intel Corporation or its subsidiaries in the United States and other countries. *Other names and brands may be claimed as the property of others.

Intel’s Water Savings

Invested $100 million in water conservation since 1998

Saved 36 billion gallons of water – enough for 335,000 U.S. homes for one year

2007 U.S. EPA Water Efficiency Leader Award 2010 CERES Water Reporting Rating Contributes to our performance/inclusion in

leading sustainability/CSR indexes

Questions

Read more at: www.intel.com/go/responsibility

Suzanne.p.fallender@intel.com

Twitter: @sfallender

Blog: http://blogs.intel.com/csr