34 intel.com/responsibility 2021-22 Corporate Responsibility Report Recognizing and Rewarding Performance We provide regular feedback to suppliers on their overall progress and achievements, and integrate corporate responsibility considerations into our Excellence, Partnership, Inclusion, and Continuous Improvement (EPIC) program. EPIC recognizes suppliers that have demonstrated outstanding, distinguished, and valued performance. For more information and a list of recently recognized suppliers, visit our Top 100 Production and Service Suppliers in the Appendix of this report. Supplier Environmental Impact We partner with our suppliers to decrease their waste generated, water usage, and greenhouse gas emissions, and thereby reduce our own environmental impact, lower supply chain risk, and can decrease costs. We also partner with our tier 1 chemical and gas suppliers on green chemistry initiatives. Our procurement teams work with our logistics and packaging suppliers to drive changes in the materials we use to ship products. Reducing Greenhouse Gas Emissions and Water Use We decrease the greenhouse gas emissions related to our transportation and logistics network by optimizing packaging to reduce the quantity and weight of ship - ments, and by increasing local sourcing. Intel is at the forefront of standardizing transportation emissions reporting within the industry through collaboration with organizations such as the Global Logistics Emissions Council . In 2021, we asked approximately 116 tier 1 suppliers that have higher environmental impacts to submit data on their own carbon footprints through the CDP Supply Chain Climate Change Questionnaire. Of those suppliers, 99% submitted the questionnaire, and 92% of them made their responses public, giving both Intel and other stakeholders information about the environmental performance of our supply chain. Using information provided in our suppliers’ CDP Climate Change Questionnaire helps us ensure that we are focusing on the largest climate change impacts. We also sent the CDP water questionnaire to 52 suppliers that are located in water-stressed regions. We achieved a 98% response rate, with 94% of the 52 suppliers publicly sharing their responses. As a result of our efforts, we were recognized in the CDP Supplier Engagement Leaderboard for the fifth consecutive year. For more information, see the Sustainable section of this report. A Risk-Based Approach to Supplier Assessments New Supplier Assessment: A short survey is sent to new suppliers to determine whether a facility is of potential high risk. We work with suppliers during the on-boarding process to remedy any issues identified. Self-Assessment: Critical and high-risk suppliers 4 complete a questionnaire to determine a facility’s potential gaps to the RBA Code. In 2021, we assessed 374 supplier facilities based on this risk assessment and past performance, a 92% increase from 2020. 71% of these assessments were managed through the RBA tools and 29% were managed with Intel-specific tools while using the RBA Code of Conduct as the basis for conformance. Audit: Higher risk suppliers must undergo either an on- site audit by qualified third-party auditors who use the RBA VAP , or a qualified Intel auditor. The latter audits are specialized according to risk and compliance concerns for a particular supplier or facility. Lower risk suppliers, 5 as determined by the self-assessment, may also be audited at our determination. What we learn from audits helps inform our supplier engagement and capability- building programs. Training/Attestation: In 2021, as part of our progress toward 2030 goals, we began requiring lower risk suppliers to complete training classes through the RBA eLearning Academy. The curriculum instructed the companies on human rights principles of the RBA Code of Conduct and their obligation to abide by the RBA Code. 79 suppliers completed this curriculum in 2021. 4 “Critical suppliers” represent a subset of all tier 1 suppliers with which we have significant business relationships and spends. “High/er risk suppliers” refers to suppliers deemed above average risk, based on data and supplier performance. 5 “Lower risk suppliers” refers to suppliers deemed below average risk, based on data and supplier performance. Introduction Responsible Inclusive Sustainable Enabling Appendix Our Business
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