| www.amd.com |
|
| Share Price (3/15/07): | $13.93 |
| OVERVIEW: | |
| Market Value (3/15/07): | $7.7 BIL |
| Revenue (2006): | $5.7 BIL |
| Employees: | 11,609 |
| Return on Equity 2006: | -3.7% |
| HIP PRACTICES: | |
| Vision: | Believes company role should have "a brain (processor) AND a heart (access)." Since 2004's World Economic Forum, radical goal of "50% by '15": affordable Internet access and computing capability for 50% of the world's population (3-plus billion citizens) by the year 2015, up from 16% (1 billion) today. Seeking to create breakthroughs that drop the cost of equipment such that low-income people world-wide can use phones and technology with AMD chips inside. |
| Metrics: | Dramatic targets: Reduce water use (liters) and greenhouse gas emissions each by 40% each and energy used (kWH) by 30% by end of 2007 (vs. 2002 baseline); reduce absolute carbon-equivalent emissions by 50% by 2010 vs. 1995. (Metrics normalized by quantity produced, complexity of fabrication, and size of wafer.) Super-large data centers can use as much energy as city of 150,000 people. |
| Financials: | “Performance per watt” metric drives customer costs lower and AMD’s revenue higher. Showcased potential customer savings of $1 billion by firm’s less-energy-intensive chips via electronic-counting billboards in Times Square and Silicon Valley in 2006. Drove market share and margins higher in 2005 and early 2006 until Intel released its eco-chips. |
| Accountability: | As member of World Semiconductor Council. working with environmental agencies globally to force chemical suppliers to be transparent and accurate about chemical hazards. |
| Decision-Making: | Business goals and impact targets all part of the same culture and scorecard; design teams required to hit energy and enviro targets as well as traditional metrics of speed, time to market, and cost to produce. |
| HIP OUTCOMES: | |
| Health: |
Serious injury case rate (per AMD Reportable Cases) reduction goal (relative to prior performance) company-wide was down 15% in 2005 compared to 2004. No absolute target is public. AMD global annual turnover = 8%. All employees covered under health plan. |
| Wealth: |
Toward 50x15 goal, AMD has partnered with Internet service providers in Mexico, Brazil, Turkey, India and throughout Caribbean – expanding access in each market. High pay and benefits for staff, but pensions for any employee even among top 5 ("that's how it is in the whole industry"). |
| Earth: |
Compared to the 2002 baseline, AMD has decreased normalized greenhouse gas emissions by 54 percent, and had already achieved its 2007 goal since 2003. New target under discussion. Beat very aggressive reduction targets for water use (50% below baseline), greenhouse gases (50% below baseline), PFC emissions (24% reduction to previous year) and energy use (48% lower than baseline). Eco-impact of large data centers and savings can be tremendous, as similar energy use to city of 150,000 people. |
| Equality: |
Global management for 2005 was 19% women; total employee population is 36% female. No women on exec management team; only one on Board of 9 Directors. |
| WHAT'S NEXT: | |
| Practices: | Eco-goals and practices create world-class standard that other heavy-industry could integrate. Could explore licensing innovations - or open-sourcing them for even broader impact. |
| Outcomes: | Explosive growth possible if breakthrough chipsets can be commercialized into affordable phones and computers; will need to catch Texas Instruments in this market. |
| OTHER RATINGS: | |
| KLD (+/-): Companies are rated from negative (0) to positive (6) in seven areas. | Community: 6.0 Governance: 4.5 Diversity: 4.2 Employees: 6.0 Environment: 6.0 Human Rights: 2.2 Product: 4.0 Included in KLD Indices for: Domini 400, Broad Market Social Index, Large Cap Social Index |
| Calvert Rating: Companies are rated on a scale of 1 (substantially below Calvert standards) to 5 (superior). | Not published. |
| RESOURCES: | |
| Sustainability or CSR Report: | AMD Corporate Responsibility |
| Annual Report: | AMD 2005 Annual Corporate Overview |
--Sara Olsen, Ruthie Ackerman, and R. Paul Herman
