2012 Corporate Responsibility Report Intel Israel. Executive Summary

Transcription

1 2012 Corporate Responsibility Report Intel Israel Executive Summary June 2013

2 Intel Israel Investing in the Next Generation 2012 was a challenging year for us, with ups and downs, in which we achieved new heights and substantial growth, but also had to contend with tough competition and a challenging business environment. Intel Israel s seventh annual Corporate Responsibility Report allows us to look back on the past year and forward to the next. The report is for you employees, colleagues and stakeholders. It reflects our ideology and endeavors, which are characterized by contributing to the Israeli economy, technological leadership and investment in the next generation. Creating Jobs, Enriching Israel s Economy. In 2012, the number of Intel employees increased by 10%, reaching 8,500. The scope of our direct and indirect employment is estimated at some 25,000 people, for which we are proud. Intel s exports of $4.6 billion last year represent 20% of Israel s high-tech exports and 10% of its industrial exports. Adding the export operations of Israeli suppliers deriving from partnerships with Intel, which total some $500 million, the export total rises to $5 billion, reflecting an enormous contribution to the Israeli economy. In 2012, Intel s direct and indirect reciprocal procurements from some 1,000 local suppliers amounted to $737 million. This year alone, Intel Israel invested $1.1 billion, close to the total amount of all the grants ever received from the State. 2 Intel s 2012 Corporate Responsibility Report Focus on Israel

3 Letter From Our President Thanks to our significant contribution to the Israeli economy, President Shimon Peres honored us with a State visit to our Qiryat Gat plant. We presented an overview of Intel s contribution to society and the economy and reviewed the latest technologies and developments. We received special praise from the President, who said that thanks to Intel, Israel is the land of milk, honey and chips. Intel Israel also continues to lead in environmental responsibility. In 2012, all our buildings in Israel received Israeli Standard for Green Building certification in cooperation with the Israeli Green Building Council and the Standards Institute of Israel. This year we were also recognized by the Environmental Protection Minister s Award for Greenhouse Gas Reporting, the CleanTech Committee Environmental Protection Award, an award for our contribution to promoting shared travel to work, and more. In 2012, a website that allows direct communication with the public on environmental matters was also developed: Intel Israel Development and Manufacturing at the Core of Intel Corporation. Intel Israel is in the forefront of Intel Corporation s future technological developments and is a partner in developing the fourth generation Core processors. In 2012, Intel Israel s engineers completed development of the Atom range of processors for tablets with Windows 8. At the same time, an Atom processor was designed as a new platform for multitasking smartphones. In 2012, Intel founded the Perceptual Computing development center, which currently employs more than 100 engineers. We expect to expand this operation over the coming years and continue to develop new human-machine interface technologies. In 2012, we announced our intention to invest some NIS 55 million over the next five years in the Israel Academic Research Institute for Computational Intelligence. In 2013, Intel Capital venture capital fund is also expected to increase its investments in Israel. Fab28 in Qiryat Gat succeeded in meeting the challenges of high-volume manufacturing in addition to upgrading the fab to 22nm technology. This impressive achievement makes it one of Intel s leading fabs. Leading Tomorrow s Generation Today. In 2012, Intel announced that it would invest NIS 20 million over the next four years to increase the graduation rate of high school students with high-quality scientific and technological matriculation diplomas from 6% to 14%. We believe that strengthening scientific and technological education in Israel is key to boosting and encouraging the next generation of engineers and scientists. In the school year, some 3,500 students participated in the We Are The Future program, developed with the Ministry of Education to support this goal. Next year, Intel will expand the program to additional schools and enlist more high-tech companies and organizations to join the multi-sector coalition. We continue to believe in the value of people, promoting occupational diversity and employing people from all sectors of Israeli society: from peripheral areas and the center, men, women, adults, youths, Arabs, Druze, Orthodox Jews and the disabled. Intel employees lead a strategy of ongoing dialog with the community. Approximately 50% of Intel employees volunteered in the community in 2012, devoting more than 39,000 hours of their time. The company also donated some $7 million to associations, schools and academic institutions. For Intel, 2013 is also a challenging year in which we will continue to invest in quality of life for the next generation in all areas of its activity. We will do this by developing and manufacturing innovative products that enrich our lives and help us communicate with one another, by contributing to export, employment and the high-tech industry, and by promoting scientific and technological education. We shall continue to lead through a culture of excellence, contribution to the community, environmental responsibility and investment in people from all walks of life. Mooly Eden Executive VP, Intel Corporation President, Intel Israel 3

4 Intel Israel Intel Israel has contributed substantially to Israel s economy and society. It has provided more than 25,000 jobs directly and indirectly countrywide. Intel Israel comprises some 10% of Israel s total exports and about 20% of high-tech exports. We see ourselves as partners in the national goals defined by the State of Israel and collaborate with governmental authorities to help achieve them. For example, our flagship We Are The Future program in collaboration with the Ministry of Education, promotes scientific and technological education among youth as well as other goals, such as reducing the digital gap and nurturing future human resources. Intel Israel is committed to supporting higher education by investing in innovative projects, such as the Israel Academic Research Institute for Computational Intelligence, where it invests tens of millions of shekels in study programs and scholarships. Intel employees volunteer and contribute to the community in various programs, reflecting Intel s social philosophy. This business and social dominance would not have been possible without the technological leadership of Intel s development and manufacturing centers in Israel, which helps drive the core of Intel s strategy. Our development centers support many of Intel s breakthroughs and our manufacturing plants spearhead the production front of Intel Corporation. Responsible Business Outlook for the Next Generation. In 2012, Intel Israel employed more than 8,500 employees at its four development centers in Haifa, Yakum, Petah Tikva and Jerusalem, the manufacturing plant in Qiryat Gat and the IDPj facility in Jerusalem. The employees come from all walks of Israeli life, creating a diverse mosaic based on the philosophy of equal opportunities for everyone, which is consistent with the Israeli Government s national goal of advancing workforce diversity. companies and contribute to Israeli industry as a whole. Intel s social responsibility approach is expressed in integrating environmental performance goals in all levels of its business operations, from product planning and manufacturing, through building and operating the manufacturing, development and resource management facilities, to waste treatment according to the government s recycling goal. In 2012, the company was commended several times for its social activities. Investing in the Next Generation. In 2012, Intel continued to spur a corporate responsibility strategy which promotes real influence in education, the community and the work environment. During the year, more than 4,000 Intel employees, some 50% of its staff, volunteered in various community projects, devoting more than 39,000 hours of their time. Intel Israel also donated around NIS 25 million to organizations, schools and academic institutions. The We Are The Future program to advance scientific and technological education, which was initiated by Intel Israel in collaboration with the Ministry of Education, aims to increase the rate of high school graduates with high-quality scientifictechnological matriculation diplomas from 6% to 14% within three years and to 20% by To implement the program, Intel Israel established and heads a multi-sector coalition. Developing and Manufacturing the Next Generation. Intel currently works in four primary areas: processors, platforms, software and services, creating a succession of computing technologies and substantially improving the user experience. Intel alumni form a resource for Israeli high-tech their high standards, striving for excellence and structured work methods are absorbed in other 4 Intel s 2012 Corporate Responsibility Report Focus on Israel

5 About Intel Israel Intel Israel s Development Centers at the Forefront. Since 1974, when its first development center outside the US was established in Haifa, Intel Israel s development centers have been spearheading Intel Corporation s strategic growth. The core technologies developed in Israel include the first PC processor, the 8088; Pentium MMX technology; the Intel Centrino laptop platform; Intel Core 2 Duo products, the basis of Intel s cutting-edge multi core processors; Sandy Bridge processors, manufactured with 32nm technology; and the 22nm Ivy Bridge range of processors. Our development centers are responsible for a substantial share of Intel Corporation s product line in smartphones, tablets, Ultrabooks and others. In 2013, Intel plans to reveal the fourth generation of Intel Core processors, which were developed in Israel and the US. These processors will extend the battery life of next-generation laptops and are expected to provide more than nine continuous hours of operation, freeing users from the need for cables. Leadership by Intel Israel s Manufacturing Centers. Since establishing its fab in Jerusalem in 1984, Intel Israel s manufacturing factories have continued to leverage Intel Corporation s most innovative technologies. The upgrade of the Fab28 plant, to the leading 22nm cutting-edge technology was completed in 2012, with an investment of $3.5 billion. In 2012, the plant recorded excellent achievements and performance and, in 2013, it began manufacturing the fourth generation Intel Core processors. New technologies that support Intel s entire product range were added to IDPj, the die-prep facility in Jerusalem. Thousands of wafers from all Intel facilities worldwide are processed there each week. Intel Corporation World-Changing Strategy. Intel s vision for the next decade is to continue to create and extend computing technology to connect and enrich the lives of every person on earth. We are promoting the following four areas to succeed in carrying out our vision: Growing our core business by making the PC magical again, and ensuring Intel technology remains the best choice for cloud computing and the datacenter. Extending Intel solutions into adjacent market segments to bring thrilling new experiences to the smartphone, the tablet, the car, and the rest of the embedded world. Connecting all these devices to create a continuum of computing. This continuum will give people a set of secure, consistent and personalized computing experiences that they love. Inspiring the next generation and focusing special care for our people and the planet. Intel Corporation in Brief: Leading manufacturer of computer, networking and communications products 167 sites and 572 buildings in 63 countries $54 billion in annual revenues from customers worldwide 25+ consecutive years of positive net income Over 105,000 employees One of the top 10 most valuable brands in the world for 12 consecutive years Ranked #68 on Fortune s 100 Best Companies to Work For list Invests $100 million each year in education across more than 70 countries Largest voluntary purchaser of green power in the United States More than 5 million hours of volunteer service in our communities in the past five years Doing the Right Things the Right Way. At Intel, we never stop looking for bold ideas in technology, business, manufacturing, and corporate responsibility. We strive to ignite imaginations and enable positive change, making people s lives better and more interesting. We incorporate environmental performance goals throughout our operations, seeking continuous improvement in energy efficiency, emissions reductions, and resource conservation. We also focus on designing our products with the environment in mind, and collaborating with others to develop innovative ways that technology can help address long-term sustainability challenges. 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. 5

6 The Israel Corporate Responsibility Report, derived from the Intel Corporation Global Report, is seen as an opportunity to strengthen our relationship with stakeholders in Israel and the public in general. The Israel Report is available for all to see at: It is also open for comment on the Intel Israel Facebook page under the Corporate Responsibility tab at: IntelIsrael, or via to our Director of Corporate Responsibility, Revital Bitan, at: The Global Report is available at: Copyright 2013 Intel Corporation. All rights reserved. Intel, the Intel logo, Intel Inside, the Intel Inside logo, and Stay With It 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.