WaterRestoration

2023ProgressReport

March2024

2

Intel2023WaterRestorationProgressReport

TableofContents

Introduction 3

OurNetPositiveWaterCommitment 3

ProjectSelectionMethodology 3

WaterRestorationProgressin2023 4

ProjectSummaries 4

ProjectLocations 5

AguaTicaForestProtection–PhaseII 6

RainwaterHarvestinginSchools 6

BenefitQuantificationApproach 7

Intel2023WaterRestorationProgressReport

3

Introduction

Semiconductorfabricationiswaterintensive.Byresponsiblymanagingourwateruse,

guidedbyour

GlobalWaterPolicy

,wecanmeetourbusinessneeds,aswellasthoseofourcommunities.Ourwaterstrategyhasthreemainobjectives:

?reducethewaterusedinouroperationsthroughinnovativewaterconservationprojects,

?reclaimwaterwithinouroperationsthroughlargeinvestmentsinstate-of-the-artwatertreatmentfacilities,and

?restorewatertoourwatershedsincollaborationwithlocalcommunities.

Thisreportprovidesasummaryofourwatershedrestorationeffortsduring2023,includingnewprojectsfundedandtheamountofwaterrestoredforallprojectsfundedtodate.

Informationaboutourprogresstowardouroverallnetpositivewatergoalandwaterconservationeffortswithinouroperationscanbefoundinourannual

Corporate

Responsibilityreport

.

OurNetPositiveWaterCommitment

Asapartofourcorporateresponsibility

strategy

,Intelhascommittedtoachievenetpositivewaterby2030,throughonsitewaterconservationeffortsaimedatreducingourfreshwateruse,andfundingwatershedrestorationprojectsthatwillrestoremorefreshwaterthanwe

consume.Thisreportsummarizestheprogresstowardthecommitmenttorestoremorethan100%ofourfreshwaterconsumption-akeycomponenttoachievingnetpositivewater.

ProjectSelectionMethodology

Intelconsidersarangeofprojecttypesandevaluatesthembasedonasetofcriteria,including:

?Credibleorganizationwithprovenprojectdevelopmentrecordandcapacity.

?Locatedinsourcewatershed,tiedtowatersupply,orconnectedtothelocalcommunity.

?Feasibleprojecttimelinethatincludesprojectinitiationandcompletionintherelativenear-term.

?Potentialforlong-termorpermanentbenefit(i.e.,abletodeliverwaterbenefitfor

multipleyears)orshort-termbenefit(typicallyoneyear)thataddressesacriticalwaterchallengeandalignswithourotherprojectobjectives.

Othercriteriausedtoassesstheoverallvalueofprojectsinclude:

?Potentialtocatalyzeand/orscaleupwatersolutions

?Communityandemployeeengagement

?Abilitytoleverageadditionalfundingthroughmatchinggrantsorothersources

?Favorableprojectcostbenefitratio

4

WaterRestorationProgressin2023

During2023,wecontinuedtofundwaterrestorationprojectsbenefitingthewatershedsthatweimpactandthecommunitieswhereweoperate,includingnewprojectsbenefittingBelen,CostaRicaandHδChíMinhCity,Vietnam.ProjectsthatIntelhasfundedthrough

theendof2023returnedandrestoredmorethanthreebilliongallonsofwatertoourlocalwatershedsduring2023.

Theseprojects,inadditiontoourefficientwatermanagement,waterreuse,and

collaborationwithmunicipalities,haveenabledInteltoachievenetpositivewaterinfourcountries-US,India,CostaRica,andMexico.

IntelLocation(bywatershed)

TotalNumberofProjects

Funded,toDate

RestoreBenefitAchievedin2023

(MillionGallons,MGY)

Arizona,USA

21

1,167

California,USA

3

562

NewMexico,USA

4

137

Oregon,USA

7

940

Texas,USA

1

0.2

Bangalore,India

2

98

Belen,CostaRica

2

120

Guadalajara,Mexico

1

73

HoChiMinhCity,Vietnam

1

0

Leixlip,Ireland

1

0

Penang&Kulim,Malaysia

1

44

GlobalTotal

44

3,141

Table1.AllwaterrestorationprojectsfundedthroughDecember31,2023.

ProjectSummaries

During2023,Intelfunded2newprojects:

?CostaRica:AguaTicaForestProtectionPhaseII-Fundecor,71.3milliongallonsperyear(MGY)expectedvolumebenefit

?Vietnam:RainwaterHarvestinginSchools-CLEANInternational,17.2MGYexpectedvolumebenefit

Informationontheseprojectsareincludedbelow,andinformationonallprojectsfundedfrom2017through2022canbefoundinourprior

AnnualWaterRestoreReports

.

1Netpositivewater%representsthetotalvolumeofwaterreturnedandrestoredglobally.Somelocationshavereturnedandrestored

significantlymorethantheirtarget,resultinginaglobaltotalgreaterthan100%.Netpositivewaterisachievedwheneachregionachievestheirspecifictarget.

5

ProjectLocations

ThelocationsoftheprojectsfundedtodateareshowninFigure1.Thismapincludesprojectsthatachieved2023restorebenefits,andprojectsexpectedtohavevolumebenefitsinfutureyears.

Figure1.LocationsofIntel’s44waterrestorationprojectsfundedthroughDecember31,2023.

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AguaTicaForestProtection-PhaseII

PressuresonwaterresourcesnearSanJose,

CostaRica,areincreasingduetohighpopulationgrowth,urbanplanningchallenges,andchanginglanduses.

ToprotectwaterresourcesintheGrandeand

VirillaRiversubwatersheds,FundecorandotherstakeholdersestablishedAguaTica,thefirst

public-privatewaterfundinCostaRicato

promotewaterreplenishmentthrough

protectionagreementsthatpreventforest

conversiontograssland,agricultureand

residentialdevelopment.Althoughforest

conversionisforbiddenunderCostaRicanlaw,thispracticestilloccurswithactivitiessuchas

agricultureandcattleproductionneartheforestborders.

AguaTica

ForestProtection-PhaseII

Location:

SanJose,CostaRica

Implementingorganization:Fundecor

Estimatedrestorebenefit:

71.3milliongallonsperyear

Projecttimeline:Initiatedin2023

PhaseIofthisprojectwasfundedin2020,withthefirstbenefitsachievedin2021.Thisproject,orPhaseIIofthiseffort,expandsthetotalarea

coveredbyidentifyingadditionalpropertytobeprotectedneartheSanIsidrodeCoronado

(PatiodeAgua-Cascajal)area.Toaccomplish

this,Fundecorhasestablishedcontractswith

landownerstoprotectapproximately218

hectaresofmatureand/orsecondaryforestfromdegradationforan8-yearperiod,avoiding

increasedrunoffbypreservingforestand

preventingconversion.Thisportionoftheforestwillbesecuredandregularlymonitoredtoensureitremainsprotected.

Theestimatedrestorebenefitiscalculatedasavoidedrunoffvolumeasaresultofprotectingexistingforestfromconversiontoamore

degradedcondition.Therestorebenefitisexpectedtobe71.3MGY.

7

RainwaterHarvestinginSchools

H?ChíMinhCityisthelargestcityinVietnam,

situatedintheSaigonRiverwatershedinthe

southeasternregionofVietnam.Althoughthe

countryreceiveshighannualrainfall,theSaigonRiverwatershedhasexperienceddeclining

groundwaterlevelsoverthepasttwodecades

duetoincreaseddevelopment,population

growth,andover-extractionfordomestic,

industrial,andagriculturaluses.Furthermore,

H?ChíMinhCityandothercommunitieswithintheSaigonRiverwatershedexperienceseasonalfloodingduetothemonsoonclimate,water

pollution,andsaltwaterintrusionintothelocalgroundwatersupply.

Rainwaterharvestingcanhelpmitigatethese

Rainwater

HarvestinginSchools

Location:

SaigonRiverWatershed,Vietnam

Implementingorganization:CLEANInternational

Estimatedrestorebenefit:

17.2milliongallonsperyear

Projecttimeline:Initiatedin2024

risksintheSaigonRiverwatershedbycapturingexcessrunoffandusingittodecreasetheuseoflocalgroundwatersupplies.HarvestedrainwatercanserveasasourceofwaterforlocalschoolsinVietnam,makingitavailableforusethroughouttheschools,creatingamoreresilientand

sustainablewatersupply.CLEANInternationalwillimplementrainwaterharvestingsystemsat86schoolsinandaroundH?ChíMinhCityoverthecourseof2024.

Therainwaterharvestingtechnologyincludesmultipletanksforwatercollection,aswellasafiltrationsystemtoprovidestudentsandstaffwithaccesstowaterfordifferentpurposes.

Theestimatedvolumetricbenefitiscalculatedasthevolumeofwatercapturedandprovidedtostudentsandteachersat86schoolsby

constructingrainwaterharvestingsystems.Thevolumetricbenefitisexpectedtobe17.2MGYoncetheprojectiscompleted.

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BenefitQuantificationApproach

Intel’swaterrestorationcommitmentisbasedonrestoringacumulativeannualvolumeofwatertotheenvironment.Theanticipatedrestorebenefitsareassessedbyourexternalconsultant,LimnoTech,foreachprojectbasedonanestimatedvolumeofwaterthatis

saved,protected,treated,orreturnedtotheenvironmentthroughfundingandprojectimplementation.

Benefitsarecalculatedandbasedonacomparisonbetweenapre-projectconditionand

theexpectedimprovedconditiononcetheprojectiscompleted.Uponcompletionofeachproject,therestorebenefitisquantifiedbasedonprojectresultsreportedbyimplementingorganizations.

Restorewaterbenefitsarebasedonpeer-reviewedquantificationmethodologies(Rozzaetal.,2013)previouslydevelopedbyLimnoTechincollaborationwithTheNature

Conservancy(TNC)(LimnoTech,2017),anddocumentedbytheWorldResourcesInstitute(WRI)(Reigetal.,2019).

Therestorewaterbenefitindicatorcalculatedandthequantificationmethodologyappliedvariesbyprojecttypeanddependsontheprojectobjectives,theactivitiesimplemented,andtheinformationanddataavailabletosupportthecalculation.Itisrecognizedthattheestimatedbenefitshavesomeuncertainty.Toreducethisuncertainty,scientifically

defensiblemethodologiesandconservativeassumptionsareemployedinthe

quantificationprocess,incombinationwithavailabledataandprojectinformation.

Consistentwiththeestablishedquantificationmethodologies,restorewaterbenefitsarecountedintheyeartheprojectiscompletedorpartiallycompletedifactualbenef