INTEL.COM/RESPONSIBILITY advancing SupplyChain Responsibility Actively managing our global supply chain creates business value for Intel and our customers by helping us reduce risks, improve product quality, achieve environmental and social goals, and raise the overall performance of our suppliers. We work to advance accountability and improve performance across our own multi-tiered supply chain of more than 19,000 suppliers, and across the entire electronics industry. Assessments, audits, and capability-building programs help us ensure that our supply chain is both resilient and responsible, and that we hold ourselves accountable to meet or exceed the same standards that we set for our suppliers. FEES RETURNED TOWORKERS Since 2013, we have manufac- tured microprocessors that are conflict-free1 for 3TG, and continue our work to establish responsible mineral supply chains for our company as well as our industry. 3TG $ 3.5M TIN,TANTALUM, TUNGSTEN,AND GOLD PARTICIPATIONIN CLIMATECHANGE SURVEY In 2016, we achieved our goal of completing on-site audits for 75 of our top-tier suppliers. Our supplier assessments and audits cover more than 300 environmental, safety, and human rights factors. We have collaborated with our top-tier suppliers to build a strong system to detect and address risks of forced and bonded labor—such as holding of passports and fees charged to workers to obtain or keep employment. Through our efforts, some $3.5 million in such fees have been returned to workers by suppliers in our supply chain since 2014. OFTOP-TIER SUPPLIERS AUDITED All of our suppliers have access to Intel’s complimentary Supplier Sustainability Resource Center, with webinars and information on over 20 critical topics such as working hours, Electronic Industry Citizenship Coalition Code of Conduct changes, and Lean* man- ufacturing and its positive impact on sustainability. In 2016, the center’s number of registered users increased 82% and webinar attendance increased 119% compared to 2015. We partner with suppliers to manage their environmental impact. In 2016, 90 of the 94 Intel suppliers that we asked to participate in the CDP supply chain survey responded. The survey is designed to help companies assess climate change risk and opportunities and improve transparency. Responsible Mineral Sourcing Accountability Combating Forced and Bonded Labor Reducing Supplier Footprint Providing Resources Building Supplier Skills and Capabilities Our Program to Accelerate Supplier Sustainability (PASS) helps our suppliers build internal capacity through rigorous annual commitments to compliance, transparency, and capability-building. As of the end of 2016, participating suppliers represented over 69% of Intel’s supply chain spending, and 83% of them had met all PASS advanced expectations in ethics, environmental, and labor practices. 100% 96% 1  “Conflict-free” refers to products, suppliers, supply chains, smelters, and refiners that, based on our due diligence, do not contain or source tantalum, tin, tungsten, or gold that directly or indirectly finance or benefit armed groups in the Democratic Republic of the Congo or adjoining countries. INTEL 2016 CORPORATE RESPONSIBILITY REPORT EXECUTIVE SUMMARY 8 9