Sustainability at Intel
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1 Sustainability at Intel John Harland Design for Environment Program Manager Intel Corporation October Western U. S. Sustainability & Pollution Prevention Conference "P2 Solutions to Climate Change and Sustainability" 1
2 Consumer Expectations Consumers increasingly judge products and companies on their environmental performance Other names and brands may be claimed as the property of others 2
3 Why is Environmental Leadership Good Business? Can provide competitive advantages and cost savings: Manufacturing processes Product development Purchasing decisions Workforce Brand strategy License to operate 3
4 Triple bottom line Financial Social Environmental Sustainability Continuous improvement perfection as enemy of the good Not just one path understand the business model 4
5 Today s Presentation Intel Business Model Operations Products and Technologies Industry Initiatives 5
6 6
7 7
8 2. R&D: Develop Manufacturing Process Moore s Law 8
9 Intel s Environmental Focus Sustainable Operations Products & Technologies Industry Initiatives 9
10 A LONG HISTORY OF ENVIRONMENTAL COMMITMENT We need to continually improve our manufacturing process, thereby reducing our burden on the environment and becoming an asset to the communities in which we live and work. Gordon Moore, Intel Chairman Letter in EHS Report, January 1995 Taking a proactive, integrated approach to managing our impact on local communities and the environment not only benefits people and our planet, but is good for our business. Paul Otellini, President and CEO CSR Report, May
11 Intel s Silicon R-D-M Pipeline Research Development Manufacturing 11nm 16nm 22nm 32nm 45nm Continuous stream of new technologies in pipeline 11
12 12
13 REDUCING ENVIRONMENTAL IMPACT OF OPERATIONS Air Pollution Global Warming Gases Energy Buildings Water Logistics & Transport Chemicals Wastewater Chemical Waste Solid Waste 13
14 Reducing Environmental Impact of Operations Intel tops EPA s list of green power partners Intel s Ocotillo Campus wins EPA Water Efficiency Leader Award Intel s newest 45nm processors to go lead* and halogen free** Intel wins the California Clean Air Award for outstanding leadership Intel pursues LEED certification for fabrication plants and buildings Intel pledges to reduce global GHG emissions by 30% per production unit Packaging reductions of 16-40% decreased number of shipments and fuel consumed Over 3 million gallons of water is reclaimed each year using special collection systems Intel, regulators and neighbors join together to reduce waste and increase recycling Solid waste and consumer recycling initiatives reduce E-waste 14 Other names and brands may be claimed as the property of others. * 45nm product is manufactured on a lead-free process. Lead is below 1000 PPM per EU RoHS directive (2002/95/EC, Annex A). Some EU RoHS exemptions for lead may apply to other components used in the product package **45nm Applies only to halogenated flame retardants & PVC in components. Halogens are below 900 PPM bromine & 900 PPM chlorine.
15 Intel s Long History of Environmental Focus Ahead of the Curve Transparency and Disclosure Driving Company-wide Continuous Improvement 1994 Public Environmental Reporting Led industry agreement on PFC reduction: world s 1st voluntary GHG reduction agreement Public Reporting of Total Energy Use 2000 First Global Sector-wide Climate Change Goal Public Reporting of Climate Footprint Global Energy Conservation Goal Green Fab 32 Comes Online 2008 Join US EPA Climate Leaders: Global Climate Footprint Goal Largest Purchaser of Green Power in US Intel s Climate Awareness Timeline 15 Source: Intel 2006 Corporate Social Responsibility Report.
16 The Next 5 Years: Our Environmental Goals Reduce absolute global-warming gas footprint by 20% by 2012 from 2007 levels. Reduce energy consumption per chip 5% per year from 2007 through Achieve engineering and design milestones to ensure that Intel products keep the energy-efficiency lead in the market for our next two product generations. Reduce water use per chip 1 by 2012 from 2007 levels. Reduce generation of chemical waste per chip by 10% by 2012 from 2007 levels. Recycle 80% of chemical and solid waste generated per year Assuming a typical chip size of approximately 1cm2. (Chips vary in size depending on the specific product.)
17 Rapid Defect Reduction for High Yield Contributes to Sustainability 0.13µm 90nm 65nm 45nm Defect Density (log scale) nm yield learning follows 65nm by expected ~2 years and is now is running at record level defect densities 17
18 Recent Corporate Responsibility/Environmental Awards and Ratings 18 Other names and brands may be claimed as the property of others
19 19
20 Intel s Environmental Focus Products & Technologies 20
21 Minimizing Product Footprint Lead Free Technology 60% Smaller Packaging for New Market Segments Copper Bump 22x22 mm Tin-Silver-Copper Solder Copper Pad 35x35mm 13x14 mm 45nm CPU s are both Lead-free 3 and Halogen Free 4 3 See item 3 on page 37 4 See item 4 on page 37 21
22 Climate LCA Supply chain, 1.05 Logistics, 0.49 Biz air travel, 0.27 Commute, 0.11 Operations, 2.71 Excluding product impact Million metric tonnes CO2 Products, Supply chain 23% Logistics 11% Commute 2% Biz air travel 6% Significant differences from some previous LCAs Use phase dominates Supply chain smaller than operations Operations 58% Source: Intel 22
23 Reduction in Hazardous Substances Driving Environmental Sustainability Lead Free Lead-frame & BGA 90nm Flip Chip Lead- Free BGA & Socket 65nm Lead- Free bump 45nm Flip-Chip Lead-Free Process* Intel Shakes the Lead Out Sumner Lemon, PC World, May 23, 2007 Chip giant will quit using lead in CPUs, starting with the Penryn line. Intel Corp. will stop using lead in its upcoming microprocessors, eliminating one of the most toxic components used in semiconductors from its product line. Intel makes Xeons halogen-free Suzanne Deffree, Electronic News, 9/8/2008 Following up on halogen-free promises, Intel Corp today expanded its 45-nm portfolio with the launch of its first four halogen-free Xeon processors. Intel in 2007 had stated it would begin removing halogen from its portfolio and took first steps to make good on that statement when it rolled out nm processors at the January Consumer Electronics Show (CES) based on its hafniumbased high-k metal gate (Hi-k) formula. 45nm Flip-Chip No HFR What s Next? Improve Recycling Process Chemicals / Reduce Waste Stream Less Energy Consumption Under Evaluation * 45nm product is manufactured on a lead-free process. Lead is below 1000 PPM per EU RoHS directive (2002/95/EC, Annex A). Some EU RoHS exemptions for lead may apply to other components used in the product package **45nm Applies only to halogenated flame retardants & PVC in components. Halogens are below 900 PPM bromine & 900 PPM chlorine. 23
24 KWh Consumption per Year Refresh, Power Management, & Form Factor Drives significant power savings Estimated Annual Energy Consumption 1 Unmanaged Typical 3-year old desktop Intel Core 2 Duo Processor, Unmanaged then Managed Typical 1-year old desktop Managed Mobile 491 Client w/crt Client w/lcd Un- Managed 192 Managed Managed 38 Intel Pentium D Processor 945 Intel Core 2 Duo Processor E7200 Intel Core 2 Duo Processor T9400 >26X reduction by going mobile 24 Copyright 2009 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.
25 2005 Datacenter Energy Efficiency Improvement (Same performance footprint) 184 single core servers Intel Xeon 5500 based servers Up to 8 month Return on Investment Up to 9X Server Reduction Annual Energy Costs 92% Estimated Reduction Source: Intel estimates as of Nov Performance comparison using SPECjbb2005 bops (business operations per second). Results have been estimated based on internal Intel analysis and are provided for informational purposes only. Any difference in system hardware or software design or configuration may affect actual performance. For detailed calculations, configurations and assumptions refer to the legal information slide in backup. 25 Copyright 2009 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.
26 Global Regulatory Environment E-waste & packaging laws REACH Batteries IPP Mercury Ban 25 EU States WEEE & RoHS Packaging E-waste, RoHS EuP RoHS Batteries Lead ban, e- waste, and packaging law E-waste 27 states draft e- waste bills WEEE 21 Mercury bans Harmonization is critical for the global IT industry Battery Law Energy law China RoHS E-waste Energy E-waste, RoHS E-waste, DFE product & Packaging 26 E-waste Draft RoHS, Battery Battery law Draft Dfe, Takeback, Packaging E-waste, RoHS E-waste & Energy RoHS study
27 Why Is Harmonization Important? Same product manufactured and sold throughout the world Fab manufacturing A/T manufacturing Product sales 27
28 Intel s Environmental Focus Industry Initiatives 28
29 THE CLIMATE SAVERS COMPUTING INITIATIVE Improve computing energy efficiency by 50% Impact: reduced global CO 2 emissions by 54 million tons/yr That is the equivalent of removal of 11 million automobiles elimination of 20 coal plants from the planet planting 25,000m 2 (~65,000km 2 ) of trees 29 *Other brands may be claimed as the property of others.
30 Eco-Technology: Two Sides of the Coin Drive Computing to Be More Energy Efficient ~2% opportunity Use Computing to Improve Energy Savings Outside Information and Communications 98% the Technology BIG opportunity 30
31 Quadrillion BTU The Most Energy Intensive Sectors Delivered Energy Consumption by Sector History Projections Transportation Industrial Residential Commercial Source: EIA Annual Energy Outlook 2008
32 Billions (Euros) Have Been The Least [Smart] ITintensive Company Segment Percentage of Revenue Spent on IT 300 Information and Communications Technology. Cleantech Global Opportunity Media 8.2% Professional Services 6.9% Information Technology 6.9% Financial Services 5.9% Electronics 5.6% Banking 5.6% Pharmaceuticals 5.5% Health Care 4.6% Construction & Engineering 4.4% Transportation 3.9% Cross Industry 4.5% Motor Logistics Buildings Grid Systems Total Transport Electricity Primary Energy Storage Carbon 32 Source: Gartner Consulting (July 2005), Smart 2020 report
33 Environment A Market Differentiator? Other names and brands may be claimed as the property of others 33
34 Integration throughout the Business Cycle Supply Chain Utilities DFE Development Performance targets Manufacturing Performance Green power purchase Lead Free ** Technology End-of-Life Use Energy reduction Copper Bump Copper Pad Product Content 34
35 35 Questions?
36 Legal Disclaimers 1 (All) Other names and brands may be claimed as the property of others 2 (page 13) Intel 45nm product is manufactured on a lead-free process. Lead is below 1000 PPM per EU RoHS Directive (2002/95/EC, Annex A). Some EU RoHS exemptions for lead may apply to other components used in the product package. 3 (page 17) 45nm product is manufactured on a lead-free process. Lead is below 1000 PPM per EU RoHS directive (2002/95/EC, Annex A). Some EU RoHS exemptions for lead may apply to other components used in the product package 4 (page 17) Applies only to halogenated flame retardants & PVC in components. Halogens are below 900 PPM bromine & 900 PPM chlorine 36
37 Overall Results - Excluding Product Use Phase Biz Travel 6.0% Supply Chain 23.0% Operations 58% Logistics 11.0% Operations CO2 impact considerably larger than embedded CO2 Commute 2.0% Data: Intel 37
38 38
39 Innovation in Product Design Provides an opportunity for $2 Billon in Energy Savings* 2% of Global CO2 Emissions* = ICT Where do microprocessors fit? Have we reduced energy use? Merom 1 Penryn Nehalem Westmere Sandy Bridge NEW Microarchitecture 65nm NEW Process 45nm NEW Microarchitecture 45nm NEW Process 32nm NEW Microarchitecture 32nm TOCK TICK TOCK TICK TOCK 2006 to date Launched in 2006: Intel Core Microarchitecture 20 Terawatts hours less energy consumed = $2B in energy cost savings* 39 *Estimated, not actual. Source: Intel Blog The Increasing Value of Energy Efficiency Sept 23, All dates, product descriptions, availability and plans are forecasts and subject to change without notice.
40 Intel s Transistor Research down to 10nm DNA is 15 nm wide 30nm 65nm process 2005 production Source: Intel nm = nanometer (1 billionth of a meter) 20nm 15nm 45nm process 2007 production 32nm process 2009 production 10nm 22nm process 2011 production 40
41 32nm Environmental Improvements Ultra pure water use is projected to decrease by up to 10% per unit Chemical waste is projected to decrease by 20% per unit Process global warming gas emissions are projected to decrease by 15% per unit Intel aims to drive environmental improvements with each new process technology Note: Per unit reductions are per cm 2 of silicon and assume die of the same size 41 Source: Intel Copyright 2009 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.
42 Intel is a leader in Renewable Energy Intel receives Green Power Leadership Award from US. EPA: Intel is the largest corporate purchaser of renewable energy in the U.S. and holds the #1 spot on their Green Power Partner list About 47% of Intel s purchased electricity usage will come from renewable sources such as wind and solar Intel site solar installations begin and expand quickly: Bangalore, India - solar water heaters now saving 70,000 kilowatts per year (2% of the site's electricity). Oregon, USA - a 100Kw electric PV system on the roof of Jones Farm campus will be operational later this year. New Mexico, USA - a solar demonstration project highlighting PV uses and benefits in data centers with be completed later this year 42 * Other names and brands may be claimed as the property of others.
43 Highlights Became largest purchaser of green power in the U.S., according to the U.S. EPA. Gave back over 1.3 million hours of volunteer service in over 40 countries. Invested $314 million in employee training, or an average of $3,700 or 37.3 hours per employee. Joined the UN Global Compact and adopted new Human Rights Principles. Adopted say on pay for 2009 shareholder meeting. Aligned portion of each employees variable compensation with sustainability goals. Introduced the high-performance, energy-efficient Intel Core i7 processor family. 43
44 Sustainability Is Not Without Challenges Technical challenges: New materials must be identified and their performance validated. Economic challenges: Limited up-sell for green electronics. Supply chain challenges: Large number of components and parts to convert & manage Industry standards: Many green technology transitions (e.g. lead-free, halogen-free) are too complex to go it alone. Collaboration is critical for success 44
45 Si Technology: The Complexity is Increasing Exponentially +4 Elements +45 Elements (Potential) 11 Elements Regulatory harmonization & flexibility is key 45
46 46
47 Ability to Effect Change Intel EHS Technology Engagement Model Very early engagement through universities and government labs Early engagement through supplier targets Optimum Time to effect change in technology Technology frozen, major changes require much more effort - use continuous improvement External Research Supplier R&D Process Development Manufacturing Ramp 8 Research Commercialization Phases Demonstration Ramp to HVM YEARS to High Volume Manufacturing 47
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