71 intel.com/responsibility 2021-22 Corporate Responsibility Report Product Energy Efficiency Each new generation of products offers higher perfor - mance and improved energy efficiency compared to previous generations. Building energy efficiency into our products not only reduces our Scope 3 GHG emissions, but also presents an opportunity to create value for our customers by helping them lower their Scope 2 GHG emissions, energy use, and overall environmental impact. In 2021, we launched 12th Generation Intel® Core™ pro - cessors for desktop and notebook computers, with hybrid architecture comprising performance cores and efficient cores. Performance boost 1 with hybrid technology will lead to higher performance per watt in client products, helping us meet our 2030 10X product efficiency goals. During 2021, we continued our work on energy-efficiency initiatives and have made substantial progress in replacing traditional system sleep and idle states with Modern Standby. Intel maintained 100% adoption of Modern Standby on notebook PC designs using 12th Generation Intel Core processors (ADL-P and ADL-U). The transition of desktop PCs to Modern Standby ramped in 2021 with a doubling of design wins through ecosystem partnerships. Intel collaborated with the technology industry to enable customers to successfully transition to Tier-2 specifications of California Energy Commission (CEC) computers standard (approximately 15% annual PC energy use reduction). We also worked with industry partners and the Consumer Technology Association to influence US computer and display standards to align with the existing CEC standards and future CEC revi - sions. This alignment is critical to prevent a patchwork of state-level certification requirements. Working with the European Commission and other stakeholders on EU Lot 3 Computers regulation revision, Intel continued to make progress with DIGITALEUROPE on new software tools for PC active mode energy-efficiency labeling recom - mendations. We also worked with government policy makers In South Korea to influence the direction of the new version of computer standard. For server energy efficiency, Intel collaborated with technology industry consortia and European Standard - ization Organizations to support development of new harmonized standards in support of EU Lot 9 server regulation already in effect. We also contributed to server energy-efficiency standards initiatives in the UK and India. In China, as part of industry consortia we are working with China National Institute of Standardization to agree on a workable solution for SPEC® SERT® suite and China’s indigenous benchmark tool (BenchSEE) to co-exist, in order to comply with China’s upcoming server energy- efficiency standard. We have estimated the GHG emissions due to energy consumption by Intel® processors sold in 2021. The annual and lifetime emissions of Intel processors when used in customers’ compute applications (i.e., server, desktop, notebook, and workstation) equate to approximately 5,264,000 and 22,903,000 metric tons of CO 2 e, respectively. The decrease in annual and lifetime emissions compared with 2020 is driven primarily by significant improvements in our server CPU calculation methodology for product energy usage and associated GHG emissions. Refine - ments for 2021 included incorporating both enterprise and cloud data center models. While there was no change to traditional enterprise data center methodology, the cloud data center model required significant refinement to CPU percent average active power in line with CPU usages in today’s data centers. Further refinements for 2021 included accounting for the emissions reduction impacts of the use of renewable electricity by our cust- omers. Specifically, calculations included consideration of cloud service provider publicly reported use of renewable electricity in data centers. Yearly emissions due to energy consumption of Intel processors are expected to trend downwards as our customers further adopt renewable electricity initiatives and goals. Net lifetime emissions after accounting for renewable electricity is going down, even with higher percent average active power in cloud data centers. For more information, see “ Achieving Carbon Neutral Computing ” later in this section. 2030 Goal: Product Energy Efficiency Description. Increase product energy efficiency 10X for Intel client and server microprocessors to reduce our Scope 3 emissions. Baseline. Progress on the client component of our product energy efficiency goal is measured using SPEC® CPU2017 Integer Rate benchmark and Display On Idle Power using an end of 2019 baseline. Desktop and notebook product efficiencies will be reported together as a single number through a weighted average of desktop and notebook pro - cessor sales volumes. Progress on the data center component of our product energy efficiency goal is measured using SPEC® Server Efficiency Rating Tool (SERT®) suite 2 on Intel and/or OEM commercial systems, using an end of 2019 baseline. Progress in 2021. Client product energy efficiency is slightly behind goal. In 2021, we released our 12th Generation Intel® Core™ processors, which achieved 2X improvement in product energy efficiency vs. 2019 baseline but fell slightly short of our aggressive internal goal of 2.3X. Server product energy efficiency is slightly behind goal. In 2021, we released our 3rd Generation Intel® Xeon® Scalable processors, which achieved 1.48X improvement in product energy efficiency vs. 2019 baseline but fell slightly short of the 1.53X internal goal that provides a linear path to 10X by 2030. Looking Ahead. For 2022, we plan to report on server progress toward the 2030 goals based on soon-to-be released 4th Generation Intel® Xeon® Scalable processors (code-named “Sapphire Rapids”) and client progress based on our next-generation processor code-named “ Raptor Lake . ” 1 https://download.intel.com/newsroom/2021/manufacturing/12th- Gen-Blueprint-Series-Presentation.pdf 2 SPEC and SERT are registered trademarks of the Standard Performance Evaluation Corporation (SPEC). Introduction Our Business Responsible Inclusive Sustainable Enabling Appendix