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intel malaysia
2014 CORPORATE
RESPONSIBILITY REPORT
www.intel.com/responsibility
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Intel Corporation chose Penang, Malaysia
changing the world as we know it and
as the site for its first location outside of
Intel Malaysia has a crucial role in this
the United States in 1972 and since its
transformation.
establishment has flourished from a
workforce of 100 to around 7,000 today.
Engineers from Intel Malaysia are also
part of the global development team for
Intel Malaysia operates from its facilities
the latest Intel® Core™ Processor and
located on 160 acres in Penang and
Intel® Atom™ Processor. This
Kulim. In addition to that, there is also a
highly-skilled workforce is a testament to
sales and marketing operations in Kuala
Intel’s commitment and continuing
Lumpur that was established in 1995.
investment here in Malaysia as its
operations move up the global value
Intel’s initial investment of US$1.6 million
chain.
has now grown to over US$5 billion –
growing our operations as a
With one of Intel’s largest ATM
manufacturer of microprocessors,
(Assembly Test Manufacturing) facilities,
chipsets, network processors,
Intel Malaysia has shipped out over 4
microcontrollers and motherboards into
billion microprocessors. Our Malaysia
one of Intel’s most comprehensive sites.
Design Centre, one of the largest silicon
As Intel innovates to bring smart,
design centres in the region, has
connected devices to every person on
contributed significantly to the design
earth, these devices grow not only in
and development of Intel's 14
number and variety but also in their
nanometer technology based on
ability to enrich lives.
second-generation Tri-gate transistors.
Intel Malaysia also plays a strategic role
The Internet of Things (IoT) – the
as the regional and global center for
integration of computing into devices
shared services in IT, Finance and Human
and connecting them to the Internet, is
Resources.
www.intel.com/responsibility
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Executive Summary of Intel Malaysia’s 2014 Corporate Responsibility Report
A LETTER FROM OUR CORPORATE VICE PRESIDENT
As of 2014, all Intel Malaysia factories and 2 major office buildings in Penang and Kulim are LEED-certified under the Green
IF IT IS SMART
AND CONNECTED,
IT IS BEST WITH INTEL.
Building Rating System for Existing Buildings: Operations and Maintenance (EBOM) category by the U.S. Green Building Council.
The certification verifies sustainable systems in place and ‘green’ improvements made to the factory building and operations. We
also continue to make progress toward achieving our ambitious 2020 environmental goals; saving 16.3 million kWh of electricity
and 140,000 cubic metres of water in addition to recording a 93.6% solid waste recycling rate, but we recognize that additional
investment and focus on these areas will be necessary to further reduce our operational impact.
In 2014, we donated 43,000 Intel® Galileo development boards to 1,900 universities around the world to encourage students to
become makers of technology. Universiti Sains Malaysia (USM) has since embedded the development boards into their
Computer Science courses, giving second year students the opportunity to solve every day problems with technology. In addition
to that, we also spearheaded the opening of an IoT Cloud Data Centre and Research Lab in partnership with Collaborative
Research in Engineering Science and Technology (CREST) as an incubator and co-working space for companies working with
rapidly emerging technologies.
We continue to make significant investments in employee training and development, programs to encourage employee
That's our corporate vision, but to us, "best with Intel" goes far beyond just
delivering great products. We are committed to developing energy-efficient
technology solutions that can be used to address major global problems while
Robin Martin
Corporate Vice President,
Technology and Manufacturing Group
General Manager,
Assembly Test Manufacturing
Intel Corporation
reducing our environmental impact. We seek to empower people and expand
economic opportunity through education and technology access. And we cultivate
a work environment in which engaged, energized employees can thrive on the job
and in their communities. These initiatives aren't an afterthought—they are
integrated into the way we work because they are good for our business.
volunteerism, and great-place-to-work initiatives. In support of our belief that a diverse workforce helps us advance our
leadership in both technology and corporate responsibility, we organized activities like the Diversity and Inclusion Leadership
Council and a Women's Progression and Advancement Forum in line with our global goal to achieve full representation of
women and under-represented minorities at Intel by 2020. We also quadrupled spending with WBEs (women-owned businesses)
from our baseline at the beginning of 2014.
We remain strongly committed to transparency and leadership in corporate responsibility that creates value for our company,
our stockholders, and society. This report provides a summary of our 2014 performance and the goals we have set for our
future. We welcome your feedback at intel.com/responsibility.
I am proud to work for a company that profoundly impacts the lives of people
around the world every day. A great example is our six-year quest to ensure that
our products do not contain tantalum, tin, tungsten, or gold derives from sources
that benefit armed groups in the Democratic Republic of Congo (DRC) or adjoining
regions, We have accomplished our goal to manufacture microprocessors that are
DRC conflict-free for these minerals, and in 2014 set a new goal that all of our
products for 2016 and beyond will be DRC conflict-free. Non-governmental
organizations report that lives are already changing in the DRC: Miners' wages are
increasing, their working conditions are improving, and armed groups are being
replaced by hospitals and schools in mining communities.
Robin Martin
Corporate Vice President,
Technology and Manufacturing Group
General Manager,
To view or download the complete global Intel 2014 Corporate Responsibility
Report, visit www.intel.com/responsibility
Assembly Test Manufacturing
Intel Corporation
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Executive Summary of Intel Malaysia’s 2014 Corporate Responsibility Report
www.intel.com/responsibility
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EXECUTIVE SUMMARY
Operating with Transparency
Our business success has always depended on our ability to build strong
OUR BUSINESS
AND INTEGRATED
VALUE APPROACH
relationships with all stakeholders, including employees, customers, suppliers,
stockholders, governments, and communities. We work to develop a culture of
trust through open and direct communication, and are committed to operating with
transparency. At Intel Malaysia, the Managing Director issues a quarterly Ethics
Message that transparently shares Code of Conduct issues with employees
site-wide. Case studies and educational videos created based on actual or
simulated cases are also provided to managers for interactive discussions during
staff meetings while trending Code of Conduct cases are openly shared during
business update meetings to create awareness and drive the highest level of
business integrity.
We relentlessly push the boundaries of smart and connected technology to outdo what’s been
done before. As the world leader in computing innovation, Intel makes amazing experiences
possible for every person on Earth. We have embedded corporate responsibility and sustainability
into our strategy, management systems, and long-term goals. We believe that this integrated
approach creates value for Intel as well as our stockholders, customers, and society.
Cultivating an Ethical Culture
Intel has a long-standing commitment to investing in systems to help ensure that
the company operates at the highest levels of business ethics and accountability.
All employees receive regular training on the Intel Code of Conduct, which directs
them to consider the short- and long-term impacts on the environment and the
community when they are making business decisions, and to report potential issues
as soon as they arise. We regularly recognize teams and individual employees for
their contributions to Intel’s ethical and compliant environment through the Intel
Ethics and Compliance Excellence Awards program.
To drive strategic alignment with
our corporate responsibility
objectives, Intel has linked a
portion of our executive and
employee compensation to
corporate responsibility metrics
since 2008.
Promoting Supplier
Responsibility
Linking Compensation
With more than 16,000 suppliers in over
To reinforce the strategic importance
100 countries, Intel has one of the
that we place on corporate responsibility,
world’s most complex, technologically
we link a portion of every employee’s
advanced supply chains. We hold the
variable compensation—from front-line
many suppliers with whom we do
workers to our CEO—to the achievement
business accountable for operating with
of corporate responsibility metrics. In
the same high standards that we expect
2014, employees earned an incremental
of ourselves. We communicate our
bonus tied to support our 2020
issues at the system level, and provide
energy efficiency in our operations. Our
infrastructure, direction, and tools to
2015 corporate responsibility bonus
measure results and help suppliers
metric will focus on diversity in the hiring
improve their performance.
gold beginning in 2016.1
and retention of employees.
In 2014, 123 suppliers worldwide were
audited for compliance on ethics, labor,
and environmental, health, and safety
factors; recognizing them with the Intel
2014 Preferred Quality Supplier award.
We also rolled out our Program to
Accelerate Supplier Sustainability (PASS)
which places stringent requirements on
capability-building to approximately 100
Executive Summary of Intel Malaysia’s 2014 Corporate Responsibility Report
free for tin, tantalum, tungsten, and
expectations clearly, identify and address environmental goal related to improving
compliance, transparency, and
6
In 2014, we set a goal to validate that
of our strategic suppliers.
1
Intel Malaysia has one of Intel’s largest
ATM (Assembly Test Manufacturing)
facilities, one of the largest silicon design
centres in the region - the Malaysia
Design Centre - and supports a global
shared services operations for IT, Finance
and HR as well as Payroll in other Intel
sites around the world.
www.intel.com/responsibility
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EXECUTIVE SUMMARY
CARING FOR
OUR PEOPLE
Intel encourages direct communication, risk taking, and the open exchange of ideas essential
for innovation. We work to give employees the right mix of autonomy and direction, and are
committed to helping them get the most out of their careers—from recruitment through
retirement. Our safe and respectful culture enables employees to thrive on the job and in
their communities.
Embracing Diversity
Emphasizing Health and Safety
Encouraging Volunteerism
In line with Intel's 2020 diversity goal,
Our safety programs help employees
Engaging our workforce in meaningful
Intel Malaysia site leaders participated in
enjoy a better quality of life and
volunteer experiences benefits
a pledge to retain, progress and advance
contribute to Intel’s success, since
communities while positively impacting
women in the workforce. Activities like
employees who are physically and
employee satisfaction and pride.
the Diversity and Inclusion Leadership
mentally fit can be more productive. Intel
Through the Intel Involved volunteer
Council and a Women’s Progression and
Malaysia ended 2014 with an
program, more than 3,000 Intel Malaysia
Advancement Forum were also
Occupational Safety and Health
employees provided over 44, 000 hours
organized to help create an inclusive
Administration (OSHA) recordable rate of
of service to 29 schools and 23
environment in the workplace. We
0.29, which is four times better than the
non-profit organizations in 2014. In
further communicate our diversity and
U.S. semiconductor industry average
addition to that, we collectively raised up
inclusion messages through a series of
recordable rate of 1.2. In addition to
to US$100, 000 through donation drives
videos, weekly short email messages and
maintaining an on-site fitness centre,
aimed at assisting relief efforts for the
quarterly newsletters to create
Intel’s wellness program - Health for Life
flood victims of Kelantan and earthquake
awareness among employees. In addition
- includes on-site primary care (with
survivors of Nepal. The Intel Foundation
to that, we implemented required
convenient access to quality care at low
further extends the impact of that
training course on micro-inequities for
cost), annual health assessments, fitness
volunteerism by donating more than
Intel managers and included Diversity
programs, wellness seminars, flu
US$150, 000 in matching grants to
and Inclusion elements into our
prevention, and personalized wellness
qualified non-profits and schools in
leadership development (LEAD –
coaching deployed through Health for
Malaysia through the Intel Involved
Leadership Expectations and Disciplines)
Life Centers at Intel.
Matching Grant Program.
In line with Intel's 2020 diversity goal,
We invested US$265 million in
In 2014, 80 IIMGP volunteers built 8
Intel Malaysia site leaders
employee training and development
modular homes for East Coast Flood
participated in a pledge to retain,
in 2014, or an average of
victims with Tzu Chi; who plans to
progress and advance women in the
approximately US$2,500 per
build 300 homes in total.
workforce.
employee.
courses.
Developing Talent
Our commitment to career development has led to increased manager capability, a stronger infrastructure, and improved
employee satisfaction. Intel Learning and Development continues to roll out Career Development Workshops where
employees and managers connect with one another, acquire new skills, and share their knowledge as volunteer instructors.
Site programs designed for future leaders include experiential courses for both managers and individual contributors like the
DOME (Developing Our Managers Experientially) development program and the Knights leadership program, Strategy
Alignment and Execution courses as well as an ATM (Assembly Test Manufacturing) Front Line Manager Development
Bootcamp. In 2014, Intel Malaysia also introduced the Career Advisors Network, a platform for volunteer advisors to provide
insight and guidance to employees on areas such as career assessment, exploration, resume writing, interviewing, and
networking. The Malaysia Design Center also ran a Technical Leadership Pipeline to groom technical individual contributors
towards becoming Principal Engineers.
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Executive Summary of Intel Malaysia’s 2014 Corporate Responsibility Report
www.intel.com/responsibility
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EXECUTIVE SUMMARY
Designing for the Environment
We strive to reduce the environmental impact of our products, from design through
disposal - including evaluating the environmental impact of materials used in our
processes, collaborating on responsible management of electronic waste, and driving
energy-efficient performance across all of our major product lines. In 2014, we
introduced the Intel® Core™ M processor and platform, which boast reductions to a
CARING FOR
THE PLANET
power-sipping 4.5 watts for up to 20% longer battery life on active workloads and
double the battery life versus a 4-year-old PC.
2
Applying Technology
to Local Issues
Leading the Industry
Intel continues to explore opportunities
technology would lead to a better
to address environmental challenges,
future for the planet. Here in Malaysia,
including developing more
we run comprehensive environment,
energy-efficient production and
health and safety (EHS) programs and
transportation systems, and applying
for over a decade have maintained a
information technology to help
multi-site, third-party-verified ISO
measure, model, and manage energy
14001 registration with all audits
and natural resources more efficiently.
conducted by the National Standards
In 2014, we collaborated with Abbaco
Authority of Ireland, an independent
Controls to deploy a decentralized,
third-party registrar. In 2014, Intel
automatic water demand management
Malaysia was recognised as 1
others to develop innovative ways that technology can address long-term sustainability challenges.
system using the Intel® IoT Gateway.
Runner-up in Large Industry Category
Operating With Sustainability
The first of its kind in Malaysia, the
of the ASEAN Best Practices Energy
system is designed to regulate
Management for Building and
agricultural water usage based on
Industries Awards. We were also
Intel is committed to being a leader in environmental responsibility. We strive to continuously
As of 2014, all Intel Malaysia factories and 2 major office buildings in Penang and
Kulim are LEED-certified under the Green Building Rating System for Existing
Buildings: Operations and Maintenance (EBOM) category by the U.S. Green Building
Council. The certification verifies sustainable systems in place and ‘green’
improvements made to the factory building and operations. Our facilities and
environmental systems are also ISO14001 certified which maps out a framework to
set up an effective environmental management system. In 2014, we also saved as
much as 16.3M kWh of electricity through 93 projects - enough energy to power
about 65,000 Malaysian households for a whole month (based on the average
household electricity consumption of 251kWh/month). In addition to that, we
recorded over 95% of construction waste recycled site wide as well as a 93.6% solid
waste recycling rate.
Intel has always believed that
factors including weather conditions
recognised in multiple categories in the
Intel Malaysia was recognised
and paddy growth cycles. By enabling
2014 Intel Environmental Excellence
as 1st Runner-up in Large
decentralised control systems with
Awards in areas including moisture
Industry Category of the
remote real-time status monitoring,
barrier bag removal and desiccant
ASEAN Best Practices Energy
cloud analytics and data sharing, the
elimination for bare die shipments
system increases farming efficiency,
(Gold) as well as supply chain outreach
helps conserve water and has
programs (Silver).
Management for Building
and Industries
Awards in 2014
We have achieved Leadership in
Energy and Environmental Design*
(LEED*) certification for KM1, KM2,
KM3, KM5, KM6 and PG8 with over
1.5 million square feet of floor
space.
In 2014, we conserved over 140,000
cubic meters of water through
various water conservation projects
demonstrated a positive impact on rice
including rain water harvesting and
crop yields. The positive results of this
reusing industrial waste water.
pilot indicates that the same
application can also be deployed for
other crops as well.
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Executive Summary of Intel Malaysia’s 2014 Corporate Responsibility Report
2
Intel Core M battery life tested vs. 4th generation Intel® Core™ processor-based platforms – 11.6" panel;
19x10; 200 nits; 35 WHr battery; SSD; 4 GB memory. Results have been estimated based on internal
www.intel.com/responsibility
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EXECUTIVE SUMMARY
INSPIRING THE
NEXT GENERATION
We work to transform education and foster innovation that drives economic growth in
countries around the world. Intel’s success rests on the availability of skilled workers, a healthy
technology ecosystem, and knowledgeable customers. In turn, the health of local economies, including
those where our employees live and work, depend on access to technology and quality education.
Strengthening STEM
Fostering Innovation
Empowering Girls and Women
The Intel Foundation is the lead sponsor
Intel invests in maker initiatives and
Closing gender gaps in education and
of two premier pre-college science
competitions that help innovators
technology are important for our
competitions, the Intel International
improve communities and create
business as it expands out talent pipeline
Science and Engineering Fair (Intel ISEF)
sustainable enterprises. In 2014,
and creates educated customers in new
and the Intel Science Talent Search (Intel
Universiti Sains Malaysia (USM)
markets. Intel is engaged in multiple
STS), which are both programs of Society
embedded the Intel® Galileo board into
initiatives aimed at educating females to
for Science & the Public. In 2014,
their Computer Science courses, giving
create expanded opportunities; inspiring
Malaysia was represented by twelve
second year students the opportunity to
more girls and women to become
Form 4 and Form 5 students including
create high tech solutions for everyday
creators of technology; and connecting
those from Sekolah Kebangsaan Batu
problems. The program is part of a
girls and women to opportunities
Lintang, Maktab Rendah Sains MARA
large-scale donation of 50,000 Intel®
through technology access, digital
Terendak and Sekolah Menengah Sains
Galileo boards to 1,900 universities
literacy, and entrepreneurship skills. In
Tun Syed Sheh Shahabudin. Since 1999,
around the world. We were also
line with our 2020 diversity goal, we
Intel Malaysia has worked with the
instrumental in driving the country’s
further quadrupled spending with WBEs
Ministry of Education and MARA (Majlis
maiden foray into the maker movement
(women-owned businesses) from our
Amanah Rakyat) to support the
with the Penang Mini Maker Faire (PMMF)
baseline at the beginning of 2014.
participation of 112 students in the Intel
2014. In addition to that, Intel Malaysia in
International Science and Engineering
partnership with Collaborative Research
Fair (Intel ISEF) producing 27 winners in
in Engineering Science and Technology
both individual and team projects.
(CREST) spearheaded the opening of an
IoT Cloud Data Centre and Research Lab
functioning as an incubator and
co-working space for companies working
with rapidly emerging technologies.
Transforming Education
Intel has led over 300 programs in more than 100 countries to provide professional development for teachers; support student
achievements in science, technology, engineering, and math (STEM); enable access to relevant, local digitized content; and more.
Powerful and energy-efficient Intel®-based PCs and servers, combined with software and fast Internet access, help students
acquire 21st century skills and help educators teach more effectively. Intel Malaysia employees regularly interact with school
children in programs including the Intel® Learn Easy Steps digital literacy program, the Intel® Entrepreneurship Basics and the Intel
Youth Enterprise Ideation Camp.
Over the past decade, Intel and
To help inspire students to become
We quadrupled spending with WBEs
the Intel Foundation have invested
innovators, in 2014 Intel donated
(women-owned businesses) from our
more than $1 billion in programs to
50,000 Intel® Galileo development
baseline at the beginning of 2014 in
improve education around the world.
boards to 1,900 universities worldwide
line with our 2020 diversity goal.
including Universiti Sains Malaysia.
www.intel.com/responsibility
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Executive Summary of Intel Malaysia’s 2014 Corporate Responsibility Report
13
EXECUTIVE SUMMARY
2014 Performance Summary Data
Looking Ahead: Corporate Responsibility Goals
This table provides a high-level summary of our key economic, environmental, and social indicators. For detailed information
Setting public goals in our key corporate responsibility areas helps us drive continuous improvement and hold ourselves
accountable for our performance. All goals are for 2015 unless otherwise noted.
Corporate Responsibility Report at www.intel.com/responsibility.
Goals for 2015 and Beyond
Key Indicators
Financial Results and Economic Impact
2014
2013
2012
2011
2010
Caring for Our People
Net revenue (dollars in billions)
$55.9
$52.7
$53.3
$54.0
$43.6
• Achieve full representation of women and under-represented minorities at Intel in the United States by 2020.
Net income (dollars in billions)
$11.7
$9.6
$11.0
$12.9
$11.5
Caring for the Planet
Provision for taxes (dollars in billions)
$4.1
$3.0
$3.9
$4.8
$4.6
• Reduce direct greenhouse gas (GHG) emissions by 10% on a per chip basis1 by 2020 from 2010 levels.
Research and development spending (dollars in billions)
$11.5
$10.6
$10.1
$8.4
$6.6
Capital investments (dollars in billions)
$10.1
$10.7
$11.0
$10.8
$5.2
Customer survey “Delighted” score
90%
91%
92%
93%
91%
Greenhouse gas emissions (million metric tons of CO2 equivalent)1
2.08
1.69
1.85
2.01
2.39
•
Energy use (billion kWh—includes electricity, gas, and diesel)
5.9
5.6
5.5
5.3
5.2
•
Total water withdrawn (billions of gallons)
8.4
8.7
9.0
8.3
8.2
49.4/0%
41.3/1%
35.5/2%
25.1/3%
23.7/1%
94.7/86%
120.7/89%
150.62/88%
81.1/85%
58.4/84%
Employees at year end (thousands)
106.7
107.6
104.7
100.1
82.5
•
Women in global workforce
25%
26%
26%
26%
28%
•
Women on our Board at year end
18%
20%
20%
27%
30%
Respecting Human Rights
Investments in training (dollars in millions)
$265
$300
$299
$299
$254
• Complete a third-party audit of one of our facilities in 2015.
0.66/0.11
0.69/0.13
0.62/0.12
0.66/0.12
0.59/0.11
84%
–
88%
87%
85%
Caring for the Planet
• Achieve cumulative energy savings of 4 billion kWh from 2012 to 2020.
•
• Achieve 90% non-hazardous waste recycle rate by 2020.
• Implement an enhanced green chemistry screening and selection process for 100% of new chemicals and gases by 2020.
Non-hazardous waste generated (thousand tons)/% recycled
Caring for Our People
Safety – recordable rate3/days away case rate3
Organizational Health Survey scores – “Proud to work for Intel”4
2
Inspiring the Next Generation
• Through the Intel® She Will Connect program, reach 5 million women in Sub-Saharan Africa by 2020.
Supply Chain Responsibility
• Complete or review an on-site audit for each of our Top 75 suppliers by the end of 2016.
•
1
Assuming a typical chip size of approximately 1 cm2
2
2010 baseline of an E56xx series processor-based server platform) as well as technology adoption that raises overall data center work output (such as
of volume notebook computers in that model year.
Inspiring the Next Generation
Employee volunteerism rate
Worldwide charitable giving (dollars in millions)
• Save 14 billion gallons of water from 2015 to 2020.
5
Charitable giving as percentage of pre-tax net income
39%
43%
47%
50%
48%
$102.3
$109.5
$105.5
$92.9
$125.7
0.6%
0.9%
0.7%
0.5%
0.8%
123
142
106
49
8
Supply Chain Responsibility
On-site supplier audits (third-party and Intel-led audits)
1
4
An estimated 42% of this total was due to construction waste related
to the building of two new fabrication facilities.
3
Rate based on 100 employees working full time for one year.
5
2
14
We did not conduct an Organizational Health Survey in 2013.
Includes total giving (cash and in-kind) from Intel Corporation
and the Intel Foundation.
Executive Summary of Intel Malaysia’s 2014 Corporate Responsibility Report
www.intel.com/responsibility
15
Over time, the number of devices connected
to the Internet and to one another has grown
from hundreds of millions to billions. Our vision
is if it is smart and connected, it is best with Intel.
drive “Moore’s Law” to enable new devices with higher functionality and complexity while controlling
power, cost, and size. The combination of embedding computing into devices and connecting them to the
Internet, known as the Internet of Things, as well as a build-out of the cloud infrastructure supporting
these devices, is driving fundamental changes in the computing industry. End users value smart devices
that connect seamlessly and securely to the Internet and to each other. We enable this experience by
To learn more about the content in this Executive Summary, visit www.intel.com/responsibility
to view or download our complete 2014 Corporate Responsibility Report, prepared using the
Global Reporting Initiative* (GRI) Sustainability Reporting Guidelines.
Copyright © 2015 Intel Corporation. All rights reserved. Intel, the Intel logo, Intel Core, and Intel Quark are trademarks of Intel Corporation in
the U.S. and/or other countries.
*Other names and brands may be claimed as the property of others.
Past performance does not guarantee future results. This Executive Summary contains forward-looking statements, and actual results could
including our most recent reports on Form 10-Q and Form 10-K and earnings release.