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Intel’s Environmental, Social & GovernanceExpectations for our Supply Chain

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Today’s presentation contains forward-looking statements. All statements made that are not historical facts are subject to a number of risks and uncertainties, and actual results may differ materially. Intel may make changes to or discontinue the program described in this presentation at any time, without notice. Please refer to our most recent Form 10-Q or 10-K filing for more information on the risk factors that could cause results to differ.

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Target Audience and Objectives

This presentation is intended for all suppliers within Intel’s supply chain.

1. Intel’s Commitment to Corporate Responsibility

2. Environmental, Social & Governance (ESG) and Electronics Industry Citizenship Coalition (EICC) Supplier responsibilities

3. Resources

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“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 with the world.”

- Paul Otellini, President & CEOIntel’s Corporate Responsibility website

Innovation in everything we do.

Corporate Responsibility

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We incorporate environmental performance goals throughout our operations, seeking continuous improvement in energy efficiency, emissions reductions, resource conservation, and other areas.

Key Issues and Priorities:

Carbon: Climate Change and Energy Efficiency

Water Conservation

Waste: Reduce, Reuse, Recycle

Reducing Air Emissions

Product Ecology

*As of October 5, 2010

Intel and the Environment

Total Cost = Cost + Quality + Availability + Technology + Environmental Sustainability + Corporate Responsibility

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Intel’s 2009 Environmental Goals and Performance

Source: Intel 2009 Corporate Responsibility Report

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We strive to cultivate a safe and respectful work environment where

employees can thrive, create, and innovate. We also work to promote dignity and respect for people and our planet throughout the global electronics

supply chain. As a company whose success has been grounded in innovation,

we focus on improving the quality of education and finding ways to

strengthen communities around the world.

Key Priorities:

Invest in People and Innovation Culture

Environmental, Social, and Governance focus in our Supply Chain Management

Strengthen Communities

Improve Education and Promote Technology Access Globally

Intel’s Social Impact

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“Conduct business with uncompromising integrity and professionalism.” This statement, part of the formal Intel Values, expresses our commitment to upholding the highest standards of corporate governance and business ethics in our day-to-day activities at Intel and our engagement with external stakeholders.

Key Issues and Priorities:

Intel Governance, Ethics and Public Policy

Governance and Ethics

Corporate Governance

Intel Code of Conduct

EICC Commitment Letter

Ethics and Compliance Program

Conflict Minerals White Paper

Antitrust Compliance

Public Policy and Advocacy

Innovation and Competition

Technical Policy and Standards

Political Accountability

Trade Associations and Business Coalition Memberships

Intel Political Action Committee

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EICC is:

A coalition or collective of many large electronic industry companies working

to implement a Code of Conduct (“CofC” or “Code”) via the methodology

A methodology – not only the collection of thoughts on the CofC, but creation of the

methods and tools by which it is to be implemented

A Code of Conduct – a minimum standard of expectation for the electronics

industry and its supplier network

The Code is intended to apply to all companies in the electronics and

computer supply chain, including Intel

These are the minimum expectations that will be followed by all EICC member

companies and delivered to their supply chains

Electronic Industry Citizenship Coalition (EICC)

EICC URL: http://www.eicc.info

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Labor Environmental Health and Safety Ethics

• Permits & Reporting

• Pollution Prevention

& Resource

Reduction

• Hazardous

Substances

• Wastewater and

Solid Waste

• Air Emissions

• Product Content

Restrictions

Management Systems

• Freely Chosen

Employment

• Child Labor

Avoidance

• Working Hours

• Wages and Benefits

• Humane Treatment

• Non-Discrimination

• Freedom of

Association

• Occupational Safety

• Emergency

Preparedness

• Occupational Injury

& Illness

• Industrial Hygiene

• Physically

Demanding Work

• Machine

Safeguarding

• Sanitation, Food &

Housing

• Business Integrity

• No Improper

Advantage

• Disclosure of

Information

• Intellectual Property

• Fair Business,

Advertising &

Competition

• Protection of

Identity

EICC Code of Conduct Elements

A management systems approach drives sustainable solutions

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The Conversation: Congo

and Your Computer

ABC News with Diane Sawyer, June 29, 2010

Silicon Sweatshops20 November 2009 – goodelectronics.org

Jonathan Adams and Kathleen E. McLaughlin

“ … Hourly wages below a dollar. Firings with no notice. Indifferent bosses. Labor brokers that leech away months of a worker's hard-earned wages. A corporate shell game that leaves no one responsible. Such conditions are widespread at the contract factories cranking out some of the most popular gadgets on the holiday season’s gift lists, according to labor rights activists and workers interviewed by GlobalPost..

Why Demonstrate EICC (Code) Compliance?

Complete supply chain reputational risk mitigation is the new reality for our industry.

Recession boosts global human trafficking….The State Department's annual Trafficking in Persons Report also says trafficking has increased in Africa and slaps six African nations on a blacklist of countries not meeting the minimum standard of combating trafficking. ….The report cites the International Labor Organization, which estimates that at least 12.3 million adults and children are victims of forced labor, bonded labor and sex slavery each year.

CNN June 2009

Reputation is no longer a substitute for data

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We expect uncompromising integrity and professionalism in our business relationships

– Intel conducts business with uncompromising integrity and professionalism and seeks to maintain the highest ethical standards worldwide

– Intel’s Code of Conduct, EICC and ethical expectations for Intel suppliers may exceed the requirements of applicable laws or common practices of a region

– All Intel employees are expected to comply with the Intel Code of Conduct regardless of local business practices or social customs Any noncompliance should be reported to Intel

Helps to assure fairness in our supplier selection and management

processes

Protects our corporate reputation and enables expanded business with our

customers

Intel’s Ethical Principles

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All Intel suppliers and their employees are expected to comply with Intel’s ethical expectations regardless of local business practices or social customs

– Any noncompliance should be reported to Intel

– Suppliers are expected to report concerns regarding ethical issues or violations of Intel’s Code of Conduct (includes EICC Code)

Intel expects that suppliers ensure that their employees understand and comply with Intel business standards

– Train your current and new employees on Intel’s ethical expectations and issue reporting

– Ensure that your employees comply with Intel’s ethical expectations

Intel’s Ethical Expectations

For training materials and more information: https://supplier.intel.com/static/Ethics/

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No Bribes or kickbacks

– Intel does not permit bribes or kickbacks whether directly or through a third party

Please do not give gifts to our employees, not even for traditional festivals or celebrations

– Intel’s Code of Conduct forbids our employees from soliciting gifts, entertainment or favors and strictly limits our employees’ ability to accept gifts

– If a gift would create an obligation (or appear to create an obligation), it is likely to be viewed as a bribe

Avoid conflicts of interest

– Suppliers and Intel employees must avoid even the appearance of conflict of interest

– Disclose potential conflicts to Intel Management

Key Ethical Expectations

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Ethical violations are unacceptable to Intel

– Intel thoroughly and confidentially investigates any allegation

– If verified, Intel takes appropriate action with potential consequences to everyone involved

Suppliers should report any potential ethical issues or violations of Intel’s Code of Conduct to Intel Management

– By an Intel employee or supplier employees

– Concerns about ethical issues in the procurement process

– Any other ethical concerns

– No negative reflection on any person or company for reporting in good faith a potential ethics issue

Report Ethical Issues to Intel

Report issues so Intel can investigate and act

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Notify Intel Management any way you wish:

– Phone call, e-mail, fax, letter

– Signed or anonymous

Anonymous reports may limit Intel’s ability to follow up on an allegation

Sometimes we need clarification or more information in order to verify the allegation

– English or Local Language

– Select from multiple contact points for raising issues to Intel Management

Local Intel representatives

Intel Internal Audit

Intel Security

Purchasing Director

Ethics.reporting@intel.com (monitored by Internal Audit)

Reporting Responsibility

See the Ethics info on supplier.intel.com website for phone numbers,

email and contacts for reporting issues

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REDUCE TOOL/ EQUIPMENT LEAD TIME

Supply Chain Excellence: ESG Focus

Be an active player in supporting Intel’s ESG expectations

Initiate a Corporate Social Responsibility Position Statement

Set aggressive, hard to achieve ESG Goals

Engage and audit your supply chain for ESG

Report , share ideas and successes

Call To Action from Brian Krzanich (Supplier Day March 2010)

ESG has become no less important than

‘traditional’ supply chain focus areas

BACK TO BASICS NO EXCURSIONS

PARTNER TO ACHIEVE COST REDUCTION

ROADMAP REQUIRED ESG PLANS & TREND

ResponsivenessVelocity Efficiency ESG

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Sustainability within Intel’s Supply Chain

Beginning in 2010, TMG added Sustainability as a category within the Supplier Report Card (SRC) to measure supplier:

Financial Health

Ethics/Social Responsibility

Environmental Sustainability

The addition of this criteria into the SRC formalizes the importance of ESG at Intel and within our supply chain.

ESG is not optional, nor is it a passing trend

Intel’s Senior Management expectation is for increased ESG proficiency

ESG is pervasive across Cost, Quality, Technology and Availability

Intel will continue to “raise the bar” in these areas

We are not asking anything of our suppliers that we don’t do or expect of ourselves

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Understand and incorporate Intel’s Environmental Social Governance scope, objectives and applicability into the supplier’s program

Environmental Sustainability

Provide information about publicly published program Baseline usage/historical data of carbon, water and waste

Work with Intel to make changes to publicly published information, if requested

EICC Risk Assessment

Participate in all applicable EICC Risk Assessments

Drive Gap Closure Plans/Corrective Action Plans on high risk areas in a timely manner as needed

Roles and Responsibilities –Suppliers

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2011 SCQI Program Requirements

All SCQI, PQS, Achievement and Certified award nominees must meet the following minimum requirements (validated by EICC WG):

En

vir

on

me

nta

l

Su

sta

ina

bili

ty

Have publicly published program with objectives, metrics and forward-looking, multi-year goals to show overall flat-to-positive performance trends towards supplier stated goals

Ris

k

Ass

ess

me

nts

Have risk assessment process completed prior to Business Unit pre-screen process with appropriate gap closure/corrective action in placeas needed or no nomination

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EICC Risk Assessments are utilized to prove standards-based approach for evaluating supply chain compliance and performance with codes related to labor, health and safety, ethics and environmental activity.

As of January 2011, Intel is no longer using E-TASC as the tool of record for self assessment questionnaires (RA2). The EICC will be moving to a new tool, Enablon, which will be released in July 2011.

In the interim, an Excel spreadsheet tool is available to fill the SAQ/RA2 gap.

If a supplier is a subscriber to E-TASC currently, it is permissible to complete the SAQ / RA2 in E-TASC and then export the SAQ and scorecard for Intel until their subscription runs out. Then suppliers will be expected to convert.

EICC Risk Assessments (RA)

For more information, contact your Intel supplier owner

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Risk Assessment Process

NMonitor

Y

Gap Closure

Plan

Risk Assessment #1

Y

N

N

Y

RA2 completed in rolling 12

month window N

Y

Decision

CriteriaMonitor

Risk Assessment #2

Risk Assessment #3

Decision

Criteria

Monitor

Dec.

Criteria

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RA3/On-site Audit

The RA3 is an EICC validated audit(s) conducted at the supplier’s facility Key components: Covers all sections of the EICC Code, risk is based on %

compliance and/or critical areas

It is a single credible process where each facility is audited using a common

set of tools

Internal Stakeholders Notification

Supplier Notification

EICC Guidance Document

Facilities Demographics

Pre-audit Checklist

Audit Questions

Scoring

Audit Report

Pre-auditCommunication

AuditorSelection

AuditChecklist

Common

Audit

Auditor Capability

and Quality

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After the Audit

On-site audit/RA3 closure is handled like any other assessment (SSQA, QOS HA, etc).

Supplier provides Intel a Gap Closure Plan/ Corrective Action Plan based on audit findings, if applicable

Intel Commodity Manager/Supplier Owner sends GCP/CAP to EICC WG representative for review/feedback

Intel Commodity Manager/Supplier owner is responsible for holding supplier accountable for performance/closure to the GCP/CAP

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Corporate Responsibility websitehttp://www.intel.com/about/corporateresponsibility/index.htm?iid=gg_about+intel_gcr

Corporate report:http://www.intel.com/intel/cr/gcr/supply.htm?iid=crr_overview+body_supply

Intel Priorities & Goals: http://www.intel.com/about/corporateresponsibility/report/priorities-and-goals.htm

Governance:http://www.intel.com/about/corporateresponsibility/governance/index.htm

Environment website http://www.intel.com/intel/environment/

Eco-Technology Innovation websitehttp://www.intel.com/technology/ecotech/

Environmental, Health & Safety http://www.intel.com/intel/other/ehs/index.htm

Contact EHShttp://www.intel.com/intel/other/ehs/contact_us.htm

Materials Supplier Environmental, Health & Safety https://supplier.intel.com/static/EHS/materials.htm

Selected Resources for Intel’s Programs

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QUESTIONS?

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Copyright © 2011, Intel Corporation. All rights reserved

Intel, Intel logo, Intel Inside logo, and Intel Leap Ahead logo are trademarks or registered

trademarks of Intel Corporation or its subsidiaries in the United States and other countries

All products, platforms, dates, and figures specified are preliminary based on current

expectations, and are subject to change without notice