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Sensible Investing 2007

 
Intel (NASDAQ:INTC)
www.intel.com
Share Price (3/15/07): $19.14
OVERVIEW:
Market Value (3/15/07): $110.4 BIL
Revenue (2006): $35.4 BIL
Employees: 94,100
Return on Equity 2006: 13.8%
HIP PRACTICES:
Vision: “Eliminate harm, do good things, build businesses” is mantra for impact and profit.
Metrics: 1st public environmental report in 1994; full-scale eco-reporting today.

30 impact goals to track this year, with aggressive carbon- and water-reductions.

Actual and normalized data since 1998; product-specific data since 2002.
Financials: 67 pilot projects to test next-generation technology and health-care products for global low-income markets.

Supply chain breakthroughs shared among competitors--seek to reduce materials and environmental intensity overall.
Accountability: Board's Stakeholder Committee has spurred plans and visions for all direct and indirect group in company.

Quarterly site reviews "down to nitty gritty" on safe, usable and sustainable materials and processes.
Decision-Making: Comprehensive integration of impact targets into pay, reviews and promotions--especially earth and equality. Company's "sustainability network" encourages front-line staff to mobilize ideas and solutions for improvements, share them globally, and tap outside experts--and competitors.
HIP OUTCOMES:
Health:
  Halfway to goals

Partnered with Omnimedix Institute to supply personal e-health records to 2.5 million individuals in the US in 2007, saving health-claim processing costs.

6500+ employees and family members self-identify health risks and re-set habits for wellness, resulting in fewer illnesses and injuries, and reduces disease conditions.
Wealth:
  World-class impact

Intel's contribution to the Sheltered Employee Retirement Program (SERP) and 401(k) was once again 8% of annual base pay for each employee.

Employees receive above market compensation based on multiple geographic benchmarking.
Earth:
  Needs momentum

Reduce greenhouse gas emissions per production unit by 30% by 2010 from a base line of 2004, including collaboration with industry suppliers to drive GHG reductions.

Seek to reduce energy consumption by 4% per unit of production each year.

In 1999, joined other members of the World Semiconductor Council to target reduction of per-fluoro-compound (PFC) emissions 10% below 1995 levels by 2010--on track to reduce PFC emissions by 90% per wafer, and in 2005 we reduced our PFC emissions 13%.
Equality:
  Halfway to goals

Board and senior management team lacking in gender and ethnic diversity.
WHAT'S NEXT:
Practices: Innovations in low-cost devices, both health and telecom, could create explosive-growth markets.
Outcomes: Overtook AMD's pioneering energy efficiency in many chip sets, retaking market share, revenue and re-establishing margin strength.
OTHER RATINGS:
KLD (+/-): Companies rated from negative (0) to positive (6) in seven areas. Community: 4.0
Governance: 5.0
Diversity: 5.1
Employees: 6.0
Environment: 5.3
Human Rights: 3.4
Product: 3.1
Included in KLD Indices for: 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). Environment: 5
Workplace: 5
Business Practices: 4
Human Rights: 5
Community Relations: 5
Included in Calvert funds: Yes
RESOURCES:
Sustainability or CSR Report: Corporate Responsibility Report 2005
Annual Report: Intel Annual Reports

--Lisa LaMotta and R. Paul Herman