AMD's Latest Data Is In

This AMD 2017 GRI index is prepared in accordance with the GRI Standards’ Core option. 

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GRI 102: GENERAL DISCLOSURES

Disclosure

Reference (URL and/or Page Numbers)

2017 Data and Responses

1. ORGANIZATIONAL PROFILE

102-1 Name of the organization

2017 Annual Report, Pg. 3

Advanced Micro Devices, Inc.

102-2 Activities, brands, products, and services

2017 Annual Report: CEO letter and Pg. 4-10

We are a global semiconductor company primarily offering: x86 microprocessors, as standalone devices or as incorporated into an accelerated processing unit (APU), chipsets; discrete and integrated graphics processing units (GPUs), and professional GPUs; and server and embedded processors and semi-custom System-on-Chip (SoC) products and technology for game consoles. We also license portions of our intellectual property portfolio.

For financial information about geographic areas and for segment information with respect to revenues and operating results, refer to the information set forth in Note 13 of our consolidated financial statements, beginning on page 88 of our 2017 Annual Report.

102-3 Location of headquarters

2017 Annual Report, Pg. 3

2485 Augustine Drive, Santa Clara, California, US

102-4 Location of operations

Global Operations Map

Contacts

Operating in over 40 locations in 19 countries, including R&D facilities, data centers, and international sales offices.

102-5 Ownership and legal form

2017 Annual Report, Pg. 3

Corporation, publicly listed on the NASDAQ Capital Market.

102-6 Markets served

2017 Annual Report, Pg. 10

Global Operations Map

Markets We Serve

We are a global semiconductor company. The x86 Microprocessor and Chipset Markets, including Central Processing Unit (CPU), Graphics Processing Unit (GPU), Accelerated Processing Unit (APU), System-on-Chip (SoC) and Chipset. Our microprocessors are incorporated into computing platforms, which are a collection of technologies that are designed to work together to provide a more complete computing solution and to enable and advance the computing components.

102-7 Scale of the organization

2017 Annual Report

Global Operations Map

Data Tables

Total assets; $3,540 (in millions)
Institutional ownership represents about 64% of outstanding shares with Vanguard Group Inc as the majority shareholder as of June 27, 2018.

102-8 Information on employees and other workers

Data Tables

Press release link related to outsourcing of supply chain

 

Number of Full-Time Employees: 8,904
Americas: 53%
Asia-Pacific/China/Japan: 45%
Europe/Africa: 2%

99% Exempt
1% Non-Exempt

AMD's supply chain is totally outsourced as of April 2016.

102-9 Supply chain

CR@AMD

The major elements of AMD’s supply chain are listed below.

  • Design: AMD engineers design the circuitry for microprocessors, graphics, embedded devices and accelerated processing units.
  • Silicon Manufacturing: AMD’s designs are manufactured on a silicon wafer. A typical wafer is made out of pure silicon that is formed into cylindrical ingots. These ingots are then sliced into wafers about 0.75 mm thick. Each wafer undergoes multiple steps in the fabrication process to produce an AMD designed processors, or “die”. The working die from the silicon wafer are cut and sent to be assembled into a chip.
  • Assembly and Test: In the assembly process each die is attached to metal connectors so it can function with other devices on a circuit board. The die is then assembled into a protective package to dissipate heat and protect it from other elements. Once fully assembled, each chip is tested for functionality.
  • Product Shipping: Qualified chips are then packaged for shipping to our customers. AMD works with channel partners to sell "processors in a box" direct to the DIY computer enthusiasts community as well as to Original Equipment Manufacturers (OEMs) that integrate our technology into their branded devices.
  • End Product Manufacturing: AMD technology powers millions of intelligent devices, including personal computers, game consoles and cloud servers that define the new era of surround computing.

We market and sell our latest products under the AMD trademark. Our desktop PC product brands for microprocessors are AMD Ryzen™, AMD Ryzen™ Pro, AMD Ryzen™, Threadripper™, AMD A-Series, AMD E-Series, AMD FX™ CPU, AMD Athlon™ CPU and APU, AMD Sempron™ APU and CPU and AMD Pro A-Series APU. Our notebook and 2-in-1s for microprocessors are AMD Ryzen™ processors with Radeon™ Vega GPUs, AMD A-Series, AMD E-Series, AMD C-Series, AMD Z-Series, AMD FX™ APU, AMD Phenom™, AMD Athlon CPU and APU, AMD Turion™ and AMD Sempron APU and CPU. Our server brands for microprocessors are AMD EPYC™ and AMD Opteron™. We also sell low-power versions of our AMD Opteron, AMD Athlon and AMD Sempron, as well as AMD Geode™, AMD R-Series and G-Series processors as embedded processor solutions. Our product brand for the consumer graphics market is AMD Radeon™, and AMD Embedded Radeon™ is our product brand for the embedded graphics market. Our product brand for professional graphics products are AMD Radeon™ Pro and AMD FirePro™. We also market and sell our chipsets under the AMD trademark.

102-10 Significant changes to the organization and its supply chain

NA

There were no significant changes to our supply chain in 2017.

102-11 Precautionary Principle or approach

 

2017 Annual Report, Pg. 17

Core Issues

Governance 

Planet

 

AMD conducts a biennial issue-prioritization process to refine our focus and resource allocation, build a foundation for an updated strategy, and communicate effectively with key stakeholders. The 2017 process determined that the
core business issues to invest in were as follows:
Role of IT in Society
Data Privacy & Security
Human Rights & Labor Issues
Energy Efficiency & Climate Change

These issues and AMD’s efforts to address them are detailed in the Core Issues section of our Corporate Responsibility homepage. For more information please see the Risk Factors section of our Annual Report (page 17).

102-12 External initiatives

 

Governance 

Human Rights & Labor Issues 

Planet 

Our Approach

RBA’s Code of Conduct 

Science Based Targets - Companies Taking Action

 

AMD has adopted the Responsible Business Association’s Code of Conduct.

After achieving our previous environmental goals (2009–2014), we established a new 2020 goal to reduce absolute greenhouse gas emissions (GHGs) by 20% (includes scope 1 and 2 emissions) from a 2014 baseline. This goal was verified by the Science Based Targets Initiative to be aligned with the reductions needed to avoid the worst effects of climate change by keeping global temperatures from rising 2 degrees Celsius. AMD was the first semiconductor company with supplier energy and climate goals verified as science-based targets, meaning they are aggressive enough to effectively mitigate the worst impacts of climate change.

102-13 Membership of associations

Stakeholder Engagement

Our main industry associations are the Semiconductor Industry Association (SIA) and the Information Technology Industry Council (ITI). Other associations are listed on our Stakeholder Engagement webpage.

2. STRATEGY

102-14 Statement from senior decision-maker

CEO Statement

“At AMD, we are at our best when we are bringing great products to market. We create high-performance semiconductor solutions that are designed to help solve some of the world’s toughest challenges. This is our driving motivation – to enable the world’s creators, researchers, inventors, and explorers to transform the lives of those around them through immersive and instinctive computing.”   
-Dr. Lisa Su, President and CEO
View full message here

3. ETHICS AND INTEGRITY

102-16 Values, principles, standards, and norms of behavior

 

Governance 

Worldwide Standards of Business Conduct

Code of Ethics

AMD AlertLine

 

AMD’s Worldwide Standards of Business Conduct support the Company’s commitment to high ethical standards and compliance with laws, regulations and Company policies. They are an integral part of AMD, and they provide guidelines for a broad range of ethics, policy and compliance issues; they also reference additional resources for more information on specific topics. AMD requires all employees complete biennial training on the code.

AMD’s Code of Ethics supports the commitment of our Corporate Officers and key finance executives to the highest ethical standards and compliance with laws, regulations, and company policies applicable to corporate financial transactions, reporting, and disclosure.

AMD Executives are vested with responsibility, and in some cases, authority, to protect, balance, and preserve the interests of the Company’s stakeholders. AMD Executives fulfill this responsibility, in part, by prescribing and enforcing appropriate policies and procedures for the company’s finance organization and by enforcing and adhering to the principles set forth in this code.

AMD employees can report illegal activities, violations of the Worldwide Standards of Business Conduct or obtain guidance about AMD policies by calling the AMD AlertLine (1-800-381-6221). The AlertLine is toll-free, multi-lingual, accepts anonymous reports and is accessible 24 hours a day, seven days a week.

4. GOVERNANCE

102-18 Governance structure

 

Governance 

Board of Directors

Governance & Charters

Principles of Corporate Governance

 

AMD’s Board of Directors is responsible for selecting the Chief Executive Officer of the Company, monitoring the operating performance and financial condition of the Company, and overseeing the Company’s adherence to corporate standards.

The AMD Board has developed a set of Principles of Corporate Governance as a framework for its oversight activities devoted to protecting and advancing the long-term interests of shareholders and other stakeholders—including employees, customers, suppliers, creditors, and the communities where we operate.

The AMD Board will continue to assess the appropriateness and effectiveness of these principles and to update these guidelines periodically as needed.

5. STAKEHOLDER ENGAGEMENT

102-40 List of stakeholder groups

Stakeholder Engagement

AMD’s stakeholders include our workforce, customers, investors, social investment analysts, our local community, our suppliers, non-government organizations (NGOs) and others.

102-41 Collective bargaining agreements

NA

AMD estimates that up to 4% of employees are covered by national or industry collective bargaining agreements in 2017.

102-42 Identifying and selecting stakeholders

Stakeholder Engagement

Working with Ceres, an award-winning nonprofit group focused on business and sustainability, AMD has established a stakeholder advisory panel consisting of experts from industry partner organizations, advocacy groups, and socially responsible investment firms.

102-43 Approach to stakeholder engagement

Stakeholder Engagement

We typically meet with the panel once to twice a year to share our progress against goals and gain a deeper understanding of how we can improve our corporate responsibility strategies, communication, and performance.

102-44 Key topics and concerns raised

 

Core Issues

Governance 

Stakeholder Engagement

 

In November 2016, Ceres hosted a stakeholder engagement session to gather feedback on AMD’s most critical business risks and opportunities and prioritize material issues. The panel’s feedback led to a prioritized list of corporate responsibility issues. In October 2017, Ceres again convened a stakeholder panel, this time to gather feedback on our disclosures and our system for managing human rights and labor risks in our supply chain.

6. REPORTING PRACTICE

102-45 Entities included in the consolidated financial statements

2017 Annual Report

Advanced Micro Devices, Inc

102-46 Defining report content and topic boundaries

 

Governance 

Stakeholder Engagement

Core Issues

 

AMD’s GRI Standards reporting strategy is defined by external stakeholder engagement, customer feedback, certification requirements, and internal strategy. We look to the GRI principles to guide our content development, including sustainability context, materiality, completeness, and stakeholder inclusiveness.

102-47 List of material topics

 

Governance 

Stakeholder Engagement

Core Issues

 

AMD hired SustainAbility to support the company in updating our biennial materiality assessment, through which we identify and prioritize environmental and social issues important to our business and stakeholders. This issue prioritization, which began in late 2016 and concluded in early 2017, helped us to refine our strategic focus and resource allocation, build a foundation for an updated strategy, and communicate effectively with key stakeholders.

The Core Issues identified through this materiality assessment include:

102-48 Restatements of information

Data Tables  

Any figures in italics in the data tables are restated from the previous year and are footnoted where necessary.

102-49 Changes in reporting

NA

There were no significant changes from previous reporting periods in the list of material topics and topic
boundaries.

102-50 Reporting period

NA

Calendar year 2017

102-51 Date of most recent report

Corporate Responsibility

 

2017

102-52 Reporting cycle

NA

Performance data and other relevant information is updated annually.

102-53 Contact point for questions regarding the report

NA

CorporateResponsibility@AMD.com

102-54 Claims of reporting in accordance with the GRI Standards

NA

GRI in accordance with Core option.

102-55 GRI content index

NA

Information contained within this GRI content index.

102-56 External assurance

NA

We do not currently rely on external assurance for our corporate responsibility reporting.

GRI 200 ECONOMIC TOPICS

Disclosure

Reference (URL and/or Page Numbers)

2017 Data and Responses

GRI 201: ECONOMIC PERFORMANCE

103-1 Explanation of the material topic and its boundary

2017 Annual Report

Information contained within this GRI content index.

103-2 The management approach and its components

 

Governance 

Worldwide Standards of Business Conduct

 

2017 marked a key product and financial inflection point for AMD. Our newest wave of high-performance, margin accretive products created significant momentum for our business. Intense focus on great products and deep customer relationships resulted in 25 percent annual revenue growth, expanded gross margin, full-year profitability and significant earnings-per-share improvement from the prior year. Importantly, we set a solid foundation for ongoing growth as we take the next steps towards meeting our long-term product goals and financial commitments.

103-3 Evaluation of the management approach

 

Governance 

Worldwide Standards of Business Conduct

 

The purpose of the Audit and Finance Committee is to oversee the accounting and financial reporting processes of the Company and the audits of the financial statements of the Company.

201-1 Direct economic value generated and distributed

Data Tables

2017 Annual Report, introduction, p. 43, 49

$5,329 - Total revenue (in millions USD)

GRI 205: ANTI-CORRUPTION

103-1 Explanation of the material topic and its boundary

Worldwide Standards of Business Conduct  
 

                                                                        

AMD's Worldwide Standards of Business Conduct includes the policy that AMD does not tolerate the offer or acceptance of bribes or kickbacks, nor does AMD tolerate corruption in any of its business dealings. Advanced Micro Devices, Inc., and all of its subsidiaries and affiliates (collectively, the “Company”); all Company officers, directors and employees; all agents, contractors, consultants, other intermediaries, and other third parties representing AMD or acting on AMD’s behalf (collectively, “Agents”); and all joint venture partners and other business partners, shall comply fully with all applicable provisions of anti-corruption laws, including the United States Foreign Corrupt Practices Act of 1977, as amended (the “FCPA”), the US Anti-Kickback Act, UK Bribery Act, the Brazil Clean Company law and Russia’s Federal Anti-Corruption Law, and all other anti-corruption and/or anti-bribery legislation applicable to the Company (whether by virtue of its jurisdiction of incorporation or the conduct of its business operations).

103-2 The management approach and its components

Governance and Reporting

Worldwide Standards of Business Conduct

AMD anti-corruption policy applies to everyone at the Company, including all officers, employees and agents or other intermediaries or third parties acting on the Company’s behalf. Each officer and employee of the Company has a personal responsibility and obligation to conduct our business activities ethically and in compliance with the law. The Company has a principle of zero tolerance for violations of anti-corruption and bribery laws, and we reserve the right to evaluate individual situations on a case-by-case basis for appropriate disciplinary action, up to and including termination of employment or termination of your business relationship with AMD.

103-3 Evaluation of the management approach

Governance and Reporting

Worldwide Standards of Business Conduct

AMD’s Corporate Compliance Committee is the internal group responsible for oversight of AMD’s Worldwide Standards of Business Conduct and related policies/procedures (e.g., Foreign Corrupt Practices Act and conflict of interest rules). The committee provides regular ethics and compliance activity reports, as well as status updates to the Board of Directors.

205-1 Operations assessed for risks related to corruption

Worldwide Standards of Business Conduct

 

AMD’s Internal Audit Department performs comprehensive risk analyses (including regarding corruption) of all AMD sites/departments.

205-2 Communication and training about anti-corruption policies and procedures

Worldwide Standards of Business Conduct

 

All employees worldwide receive copies of and training on AMD’s Worldwide Standards of Business Conduct, which includes strict anti-corruption provisions. Training typically takes about one hour per employee and must be completed during the employee’s first 90 days of service, and on a three-year cadence thereafter.

205-3 Confirmed incidents of corruption and actions taken

NA

AMD is unaware of any such incidents during or related to 2017.

103-1 Explanation of the material topic and its boundary

Governance and Reporting

Worldwide Standards of Business Conduct

AMD's Worldwide Standards of Business Conduct addresses antitrust, stating "Antitrust and competition laws are designed to promote competition among businesses and prohibit acts that unreasonably restrain such competition. Activities that limit competition, restrict trade or otherwise dominate a market may violate federal or state antitrust laws. Such violations can expose the Company and individual employees to criminal penalties, large fines and civil lawsuits."

AMD stands for fair trade and open markets across the globe. We believe that by encouraging open, competitive markets, everyone wins.

103-2 The management approach and its components

Governance and Reporting

Worldwide Standards of Business Conduct

AMD’s antitrust and competition policy applies to everyone at the Company, including all officers, employees and agents or other intermediaries or third parties acting on the Company’s behalf. Each officer and employee of the Company has a personal responsibility and obligation to conduct our business activities ethically and in compliance with the law. The Company has a principle of zero tolerance for violations of antitrust and competition laws, and we reserve the right to evaluate individual situations on a case-by-case basis for appropriate disciplinary action, up to and including termination of employment or termination of your business relationship with AMD.

AMD understands that activities that limit competition, restrict trade or otherwise dominate a market may violate federal or state antitrust laws. Such violations can expose the Company and individual employees to criminal penalties, large fines and civil lawsuits. To avoid antitrust problems AMD does not enter into agreements with competitors to fix prices or otherwise restrict AMD’s pricing freedom, to divide markets or customers, or to boycott third parties.

103-3 Evaluation of the management approach

Governance and Reporting

Worldwide Standards of Business Conduct

There is Vice President level oversight within the Law Department for intake of any concerns, and compliance is regularly monitored. AMD's Worldwide Standards of Business Conduct training includes this antitrust and competition compliance as a topic, and there is also a law department education website available to all employees on this topic.

206-1 Legal actions for anti-competitive behavior, anti-trust, and monopoly practices

2017 Annual Report

There were no legal actions for anti-competitive behaviors, antitrust, or monopoly practices brought against the company in 2017. Any material legal proceedings involving AMD would be discussed in our 2017 Annual Report on Form 10-K.

GRI 300 ENVIRONMENTAL TOPICS

Disclosure

Reference (URL and/or Page Numbers)

2017 Data and Responses

GRI 302: ENERGY

103-1 Explanation of the material topic and its boundary

Environmental Sustainability
 

AMD manages energy use across the value chain, with a focus on energy efficiency in wafer manufacturing and product design, as well as sourcing renewable energy. Product use is the largest source of energy use in our value chain due to the electricity required to operate computing devices. Several limitations exist on estimating energy use from AMD processors, including wide variations in what percentage of system-level energy use is attributable to AMD processors, as well as wide variations in the use cases for system operations. Regardless, AMD focuses on maximizing performance per watt of energy consumed across our products and estimates energy use when standard uses cases are known, such as for notebooks and desktops (ENERGY STAR® typical use scenario). In our supply chain, the largest energy use occurs at wafer manufacturing and ATMP (Assembly, Test, Mark, and Pack) facilities due to fuels, chemicals, and electricity. AMD’s wafer manufacturing suppliers are in Taiwan, Germany, and the United States; our ATMP partners are located primarily in Malaysia and China. Compared with our suppliers, energy use at AMD locations is not material (under 20%). AMD’s main facilities include office space with some laboratories, as well as datacenters, and are in the United States, Canada, China, India, and Singapore.

103-2 The management approach and its components

Environmental Sustainability
Energy Efficiency & Climate Change Issue Brief 
 

AMD manages energy use across our value chain by gathering available data, monitoring trends, engaging with key stakeholders, and pursuing continuous improvement through goals and corrective actions.

For our supply chain, we gather data regarding the energy used to manufacture AMD products from wafer foundries (quarterly) and outsourced assembly and test sites (annually), collectively covering approximately 70% of our annual supplier spend. Wafer foundries represent the largest source of energy use, so AMD has public goals to keep electricity use at these operations to 40% below the industry average and to keep scope 1 GHG emissions from fuel use to 75% below the industry average, based on a manufacturing index. (The manufacturing index = sq. cm of silicon x masking layers x wafers per year.) The estimated total contract manufacturing energy use is analyzed annually and publicly disclosed. AMD works with directly with suppliers on corrective actions as needed through Supplier Business Reviews (SBRs).

For AMD operations, the environment, health and safety (EHS) and facilities teams gather monthly energy use data and review trends on a quarterly basis. Any unexpected increases are evaluated, along with potential capital projects such as equipment upgrades, HVAC or lighting schedules, etc. Employees are educated through our Go Green program and annual Eco-Challenge; the latter addresses actions they can take such as turning off desk monitors and lights.

For product use, AMD estimates annual energy consumption (in kilowatt hours, or kwh) from all notebook and desktop “accelerated processing units” (APUs) sold globally using the ENERGY STAR® 6.1 typical energy consumption (TEC) model. The TEC is multiplied by the number of units sold for each product family. A cross-functional team meets monthly to review topics related to energy efficiency. We have a goal to improve the energy efficiency (performance per watt) of notebook APU processors by 25 times by 2020, from a 2014 baseline, and we report progress annually.

103-3 Evaluation of the management approach

Environmental Sustainability
 

Annually, the management approach for collecting, evaluating and acting upon energy data is reviewed as part of the corporate responsibility reporting cycle. This entails review of data collection forms and processes, calculations for evaluating the data, and corrective action processes.

302-1 Energy consumption within the organization

Data Tables
 

129 gigawatt hours (GWh)

We use direct measurement where possible to track energy use (e.g., via fuel consumption data or bills) and electricity use (e.g., via utility bills). If direct measurement for electricity use is not available, as in the case of approximately 25 small office locations, usage is estimated based on square footage and published average electricity usage data. Similarly, in cases where only small amounts of fuel are used for emergency generation, estimates of usage may be made based on generator runtimes. Energy use is uploaded by sites monthly into a central database. Any renewable energy is noted, along with resource conservation projects and estimated energy savings.

302-2 Energy consumption outside of the organization

Data Tables
 

779 GWh

We report estimated energy use from outside the company based on supplier electricity use from wafer manufacturing and final assembly (also called outsourced assembly and test, or OSAT) manufacturing. Electricity emission factors are based on the World Resources Institute (WRI) GHG Protocol. Each supplier manufacturing facility in scope discloses total electricity use and the amount allocated to AMD based on the percentage of manufacturing applied to AMD products at the facility, using a manufacturing index to account for product complexity, size, and volume.

302-3 Energy intensity

Data Tables
 

0.024 kwh/$

We calculate energy intensity based on internal energy use divided by annual revenue. Internal energy use includes electricity, natural gas, and fuel (e.g., diesel/gas oil and liquified petroleum gas used for boiler, fire pump, heater, exhaust oxidizer, and power generator fuel consumption). Electric utility bills and fuel bills are used, along with direct measurement where possible, to gather the data. In cases where only small amounts of fuel are used for emergency generation, estimates of usage may be made based on generator runtimes.

GRI 303: WATER

103-1 Explanation of the material topic and its boundary

Planet 

Across our value chain, the highest use of water occurs in the contracted wafer manufacturing stage. These fabrication plants are in Taiwan, Germany, and the United States. We work closely with our foundry wafer partners to track water usage and performance goals, as well as to understand local water risks. We identify contingency plans for potential situations in which local water restrictions may be implemented.

103-2 The management approach and its components

Planet 

AMD manages water use and associated business risks by working with contract manufacturers and AMD facilities to gather available data, monitor trends, and pursue continuous improvement through goals and corrective actions.

For supply our chain, we gather data regarding the water used to manufacture AMD products from wafer foundries (quarterly) and outsourced assembly and test sites (annually), collectively covering approximately 70% of our annual supplier spend. Wafer foundries represent the majority of water use, so AMD has a public goal to keep water use at these operations to 40% below the industry average based on a manufacturing index. (The manufacturing index = sq. cm of silicon x masking layers x wafers per year). The estimated total contract manufacturing water use is analyzed annually and publicly disclosed. AMD also uses the WRI Aqueduct Water Risk Atlas to identify high-water-risk supplier locations. Wafer foundry operations in high-water-risk areas provide AMD with annual water risk mitigation and reduction plans. Other high-risk supplier facilities may be asked for this information if/when they undergo a Supplier Business Review (SBR).

For AMD operations, the EHS and facilities staff gathers monthly water use data and reviews trends on a quarterly basis. Water use is defined as the total quantity of water used at the point the water enters the site; it is documented through water bills and, where feasible, direct measurement. Most water use within AMD operations occurs at our most populated campuses and data centers, mainly located in the United States and Canada. We collect rainwater and reuse gray water in Austin, Texas, and Bangalore and Hyderabad, India.

103-3 Evaluation of the management approach

Planet 

Annually, the management approach for collecting, evaluating and acting upon water data is reviewed as part of the corporate responsibility reporting cycle. This entails review of data collection forms and processes, calculations for evaluating the data, and corrective action processes.

303-1 Water withdrawal by source

Data Tables
 

200 million liters (ML)

To the best of our knowledge, all water used by AMD is from municipal sources or rainwater collection.

GRI 305: EMISSIONS

103-1 Explanation of the material topic and its boundary

 

Planet 

 

AMD manages scope 1, 2, and 3 GHG emissions across the value chain, with a focus on energy efficiency in wafer manufacturing and product design, as well as sourcing renewable energy. Product energy use is the largest source of GHG emissions in our value chain due to the electricity required to operate computing devices. Several limitations exist on estimating GHG emissions from the use of AMD processors, including wide variations in what percentage of system-level energy use, and related emissions, are attributable to AMD processors, as well as wide variations in the use cases for system operations. Regardless, AMD focuses on maximizing performance per watt of energy consumed across our products and estimates energy and related GHG emissions when standard uses cases are known, such as for notebooks and desktops (ENERGY STAR® typical use scenario). In our supply chain, GHG emissions mainly occur from wafer manufacturing facilities (located in Taiwan, Germany, and the United States) directly from fuel use or indirectly from electricity generation. At AMD operations, GHG emissions mainly occur from electricity use at large campuses and datacenters. Conservation projects are implemented, and renewable energy is sourced where appropriate.

103-2 The management approach and its components

Planet 

Energy Efficiency & Climate Change Issue Brief

 

For our supply chain (scope 3) GHG emissions, we work closely with our foundry wafer partners each quarter to track GHG emissions (scope 1 and 2) and performance goals. Our public goals are to keep scope 1 GHG emissions from manufacturing AMD wafers to 75% below the industry average, and electricity use (which leads to scope 2 GHG emissions) to 40% below the industry average, based on a manufacturing index. (The manufacturing index (MI) = sq. cm of silicon x masking layers x wafers per year.)  For outsourced assembly and test sites, we gather GHG emissions (scope 1 and 2) annually, review trends and efficiencies based on the MI, and engage suppliers as needed on corrective actions. Our scope of supplier GHG management covers ~70% of our total annual spend. The estimated total contract manufacturing GHG emissions are analyzed annually and publicly disclosed. AMD works with directly with suppliers on corrective actions as needed through Supplier Business Reviews (SBRs).

For AMD operations (scopes 1 and 2), GHG emissions are mainly due to the electricity use in our office buildings and datacenters. We manage these impacts through sourcing renewable energy and implementing energy conservation projects.

For product use (scope 3), we estimate annual GHG emissions based on electricity generation from all notebook and desktop APU processors sold globally using the ENERGY STAR® 6.1 typical energy consumption (TEC) model. Processor TEC is multiplied by an average electricity emission factor of 0.69 kg CO2e/kwh (based on previous third-party-reviewed AMD carbon footprint studies), which is multiplied by the number of units sold of each product family. A cross-functional team meets monthly to review topics related to energy efficiency across product lines. We have a goal to improve the energy efficiency (performance per watt) of notebook APU processors by 25 times by 2020, from a 2014 baseline, and we report progress annually.

We report other scope 3 GHG emission estimates based on WRI GHG Protocol methods. Business air travel data is provided by our travel agency. We utilize Skype for Business and other video/teleconference tools to minimize air travel. For employee commuting, we estimate transportation modes (e.g., drive alone, carpool, cycle, bus) at our five largest locations and then estimate their associated GHG emissions. Product shipping data is provided by our two primary freight companies and includes estimated GHG emissions from air travel shipments.

103-3 Evaluation of the management approach

Planet
 

Annually, the management approach for collecting, evaluating, and acting upon GHG data is reviewed as part of the corporate responsibility reporting cycle. This entails a review of data collection forms and processes, calculations for evaluating the data, and corrective action processes.

305-1 Direct (Scope 1) GHG emissions

Data Tables
 

3,847 metric tons of carbon dioxide equivalents (MTCO2e)

Our scope 1 emissions from fuel use represent just under 10% of our total scope 1 and 2 GHG emissions. The scope 1 value increased 46% from 2016 to 2017 mainly due to new product testing equipment use; the 2017 value is 10% higher than our 2014 baseline year. The gases include hexafluoroethane (HFE) and hydrofluorocarbons (HFCs). Emission factors for fuels are based on the Intergovernmental Panel on Climate Change (IPCC) Assessment Report, and for chemical use are based on the GHG Protocol Calculation Tool (Global Warming Potential Values) and IPCC Assessment Report Table 2.14. The scope is based on operational control (i.e., AMD-occupied facilities). We follow the GHG Protocol, the internationally recognized standard for the corporate accounting and reporting of GHG emissions. The method includes Site Metrics Coordinators entering the monthly amount of fuel and chemicals use, by type, into AMD’s central database, and then applying the emission factors.

305-2 Energy indirect (Scope 2) GHG emissions

Data Tables
 

42,049 MTCO2e

Our scope 2 emissions from electricity use decreased 7% from 2016 to 2017 mainly due to an increase in renewable energy credits; the 2017 value is 14% below our 2014 baseline year. The method includes Site Metrics Coordinators entering the amount of electricity used each quarter into AMD’s central database. AMD follows the Greenhouse Gas Protocol, the internationally recognized standard for the corporate accounting and reporting of GHG emissions. Emission factors for locations in the U.S. are based on eGRID total output emission rates, and for outside the U.S. are based on International Energy Agency (IEA) national electricity emission factors. If electricity use data is not available, as for small offices, then an average value for U.S. office buildings is used for all AMD locations (17.3kwh/sf), and the emission factor for the location is applied. AMD purchases renewable energy credits (Green-E certified wind) from the U.S. and applies them to AMD sites in the U.S. (e.g., Austin, Atlanta). The scope of our emissions reporting is based on operational control (i.e., AMD-occupied facilities).

305-3 Other indirect (Scope 3) GHG emissions

Data Tables
 

937,580 MTCO2e

We report estimated emissions from outside the company based on (1) supplier scope 1 and 2 emissions attributed to AMD products from wafer manufacturing and final assembly manufacturing using a manufacturing index to account for product complexity, size, and volume, (2) employee commuting from AMD’s five most populated campuses, (3) product shipping logistics, (4) employee air travel, and (5) and product use for notebook and desktop APU processors. Emission factors and calculation methodologies are aligned with the WRI GHG Protocol. AMD internally estimates employee commute and product use emissions; our suppliers provide the manufacturing facility emissions; our travel agent provides the air travel emissions; and our shipping providers provide the logistics emissions.

305-4 GHG emissions intensity

Data Tables
 

8.6 gCO2e/$

We calculate emissions intensity based on scope 1 and 2 emissions divided by annual revenue. The 2017 amount decreased 23% from 2016 and is 9% below the 2014 baseline.

Scope 1 emissions include fuel use (mainly diesel fuel and natural gas). Scope 2 emissions include electricity use. See disclosures 301 and 302 for our data gathering approach, emission factors, and calculation methodologies for emission estimates.

305-7 Nitrogen oxides (NOX), sulfur oxides (SOX), and other significant air emissions

Data Tables
 

AMD did not have reportable air emissions in 2017.

GRI 306: EFFLUENTS AND WASTE

103-1 Explanation of the material topic and its boundary

Planet
 

Across AMD’s value chain, the highest generation of effluents and waste occurs in the contracted wafer manufacturing stage. These fabrication plants are in Taiwan, Germany, and the United States. AMD works closely with our foundry wafer partners to track effluents and waste, including conducting quarterly data reviews.

103-2 The management approach and its components

Planet
 

AMD manages effluents and waste generation by working with contract manufacturers and AMD facilities to gather available data, monitor trends, and pursue continuous improvement through goals and corrective actions.

For our supply chain, we gather data on hazardous waste generation and recycling from the manufacturing of AMD products at wafer foundries (quarterly), and outsourced assembly and test sites (annually), collectively covering approximately 70% of our annual supplier spend. Wafer foundries represent most of hazardous waste generation, so we have a public goal to recycle 65% or more of hazardous waste from these operations. The estimated total contract manufacturing hazardous waste is analyzed annually. Negative performance trends are addressed through Supplier Business Reviews (SBRs).

For AMD operations, our EHS and facilities staff gathers monthly hazardous waste generation data. Hazardous waste is defined as any waste regulated as hazardous, such any listed or characteristically hazardous waste defined in the regulations of the federal Resource Conservation and Recovery Act in the United States. Waste generation is documented through waste vendor bills and, where feasible, direct measurement. Small amounts of hazardous waste are generated at AMD operations.

103-3 Evaluation of the management approach

Planet
 

Annually, the management approach for collecting, evaluating, and acting upon effluents data is reviewed as part of the corporate responsibility reporting cycle. This entails a review of EHS data collection forms and processes, calculations for evaluating the data, and corrective action processes.

306-1 Water discharge by quality and destination

Data Tables

22 million liters (ML) of wastewater

306-2 Waste by type and disposal method

Data Tables
 

659 metric tons (MT) total (8 MT of which is hazardous waste)

AMD determines waste disposal methods based on regulations and available qualified licensed and/or permitted waste disposal and treatment facilities. We generated approximately 651 MT of non-hazardous waste in 2017. 455 MT was recycled, and 196 MT was landfilled, resulting in a 70 percent diversion rate.  8 MT of regulated hazardous waste was generated in 2017. Below are the amounts by categories and disposal method for hazardous waste.

  • Treated (0.5 MT): Regulated waste materials generated and shipped off-site to licensed and or permitted waste disposal and treatment facilities for treatment (for example, neutralization)
  • Incinerated (6.1 MT): Regulated waste materials generated and shipped off-site to licensed and or permitted waste disposal and treatment facilities for incineration
  • Landfilled (0.7MT): Regulated waste materials generated and shipped off-site to licensed and or permitted waste disposal and treatment facilities to be landfilled Recycled (0.7 MT): Regulated waste that is either reused or recycled on-site or sent to an off-site recycling facility with the intent of being recycled, reclaimed, or reused

306-3 Significant spills

Data Tables

0

No significant spills were known or reported for 2017.

306-4 Transport of hazardous waste

Data Tables

8 MT

AMD uses qualified vendors for hazardous waste transport.

306-5 Water bodies affected by water discharges and/or runoff

Data Tables

0

No significant spills were known or reported for 2017.

GRI 307: ENVIRONMENTAL COMPLIANCE

103-1 Explanation of the material topic and its boundary

Planet
Product Environmental Compliance
 

AMD manages environmental compliance across the value chain, including supplier manufacturing, building operations, and product design (e.g., REACH/RoHS, ENERGY STAR®).

103-2 The management approach and its components

Planet
Product Stewardship
Product Environmental Compliance
 

Environmental compliance relating to products is overseen by our Quality and Regulatory Affairs staff. Environmental compliance relating to suppliers is overseen by our Corporate Responsibility staff. Environmental compliance relating to building operations is overseen by our EHS staff. 

In addition, a cross-functional team composed of individuals from Supply Chain, Public Affairs, Legal, Quality, and Sales meets quarterly to review compliance processes, responsibilities, resources, and projects across the value chain. Third-party advisors are used when needed to support compliance initiatives, including a global monitoring service for new regulations.

103-3 Evaluation of the management approach

Planet
 

An executive team (composed of corporate vice presidents) representing Supply Chain, Public Affairs, Legal, Quality, and Sales is briefed semi-annually on compliance processes, responsibilities, resources, and projects.

307-1 Non-compliance with environmental laws and regulations

Data Tables
 

In 2017, AMD received a notice of deficiency with regard to Section 901.6 of the California Fire Code. This was due to the failure of AMD’s inspection contractor to submit documentation of the closure of deficiencies found during a fire systems inspection in 2016. All items had been corrected, and the contractor provided the necessary documentation. No fines were issued nor further action required.

GRI 308: SUPPLIER ENVIRONMENTAL ASSESSMENT

103-1 Explanation of the material topic and its boundary

 

Planet

Our Approach

AMD assesses supplier environmental performance on energy and water use, carbon emissions, and hazardous and nonhazardous waste generation and recycling. Previous AMD supply chain environmental assessments show that most environmental impacts in the supply chain occurs at wafer manufacturing facilities, which are in Taiwan, Germany, and the United States. The next most significant group of suppliers impacting the environment are OSAT facilities, which are in China, Malaysia, Thailand, Taiwan, and other countries.

103-2 The management approach and its components

 

Planet

Our Approach

AMD’s Corporate Responsibility staff meets quarterly with wafer foundry manufacturers to review established key performance indicators and trends. We track progress toward our public goals for supplier wafer manufacturing that compare energy, emissions, water, and waste performance for foundry operations to industry averages, based on a manufacturing index. (The manufacturing index = sq. cm of silicon x masking layers x wafers per year.)  Supplier responsibility performance for wafer foundries is scored on a scale of 1–100 across five categories (communication, management system, performance, corrective actions, and industry leadership). The score is incorporated into our quarterly Supplier Business Reviews, representing 10% of the total score. For OSATs, we collect environmental impact data annually and assess suppliers and/or locations with disproportionately high impacts based on the manufacturing index for OSATs.

103-3 Evaluation of the management approach

 

Planet

Our Approach

Each year, our Corporate Responsibility and Supply Chain staff reviews the effectiveness of supplier environmental assessment programs and processes. If adjustments are recommended, we review the changes and work with our suppliers to incorporate them. Sometimes we will request audits of suppliers that represent the highest risks for environmental (and social) issues.

308-2 Negative environmental impacts in the supply chain and actions taken

NA

AMD’s supplier environmental assessment covers approximately 70% of our total annual supplier spend, including the most significant environmental impacts (foundry wafer manufacturing and OSAT operations). These facilities are located around the world, including but not limited to Taiwan, China, Germany, Malaysia, Thailand, and the United States. We communicate our expectation to all suppliers that they meet all applicable laws and regulations as well as the Responsible Business Alliance (RBA) Code of Conduct.

GRI 400: SOCIAL TOPICS

Disclosure

Reference (URL and/or Page Numbers)

2017 Data and Responses

GRI 401: EMPLOYMENT

103-1 Explanation of the material topic and its boundary

 

Human Rights & Labor Issues

 

At AMD, our goal is to be an employer of choice, with passionate, innovative, fully engaged employees. To achieve this goal, we need a strong culture that reaches across all aspects of our business.

Our founder’s guiding direction was “People first, products and profits will follow.” And that remains true to this day. Our success as a company is dependent on the people who design and manufacture our technology, as well as the people who use it.

103-2 The management approach and its components

 

Human Rights & Labor Issues

 

Much of our future success depends upon the continued service of numerous qualified engineering, marketing, sales and executive personnel. Competition for highly skilled employees and executives in the technology industry is intense. If we are not able to continue to attract, train and retain qualified personnel
necessary for our business, the progress of our product development programs could be hindered, and we could be materially adversely affected.

103-3 Evaluation of the management approach

 

Human Rights & Labor Issues

 

Compensation and Leadership Resources Committee 

Part of our Board of Directors’ Compensation and Leadership Resources Committee’s charter is to “provide advice and guidance to the Company with regard to its talent management and development programs”

401-2 Benefits provided to full-time employees that are not provided to temporary or part-time employees

People

 

To help attract, retain and motivate qualified personnel, we use share-based incentive awards such as employee stock options and non-vested share units (restricted stock units).

401-3 Parental leave

People

“Parental leave” can encompass various types of leaves in different countries; it provides time off for parents to nurture their families and make necessary life adjustments.

GRI 403: OCCUPATIONAL HEALTH AND SAFETY

103-1 Explanation of the material topic and its boundary

People

AMD collects and tracks a variety of health and safety performance indicators across our global operations that are used to monitor trends and help focus our actions to prevent injuries. Related areas include legal compliance, employee well-being, injury and illness prevention, emergency  preparedness and response, electrical safety, equipment safety, chemical safety, and ergonomics.

103-2 The management approach and its components

People

AMD implements global EHS standards to provide the structural framework for the development of best-in-class EHS programs for our operations throughout the world. These standards are designed to be consistent with internationally recognized management systems such as ISO 14001 and OHSAS 18001.

103-3 Evaluation of the management approach

People

AMD publicly reports metrics, key performance indicators, and targets for EHS, labor, and other topics in alignment with the Global Reporting Index. Periodic assessments of performance are tracked and used to drive continuous improvement.

403-2 Types of injury and rates of injury, occupational diseases, lost days, and absenteeism, and number of work-related fatalities

Data Tables

0.05 – worldwide injury and illness case rate (per 100 workers)

GRI 404: TRAINING AND EDUCATION

103-1 Explanation of the material topic and its boundary

People

AMD has a variety of courses on compliance topics available to all employees through the AMD Learning Management System (LMS).

103-2 The management approach and its components

People

Several of the courses are mandatory for all or certain groups of employees and many of them include tutorials, self-assessments, Some of the available courses include: AMD’s Worldwide Standards of Business Conduct; and courses regarding anti-corruption, export control, and confidentiality.

103-3 Evaluation of the management approach

People

All employees receive access to and training on AMD’s Worldwide Standards of Business Conduct. Training typically takes about one hour per employee and must be completed during the employee’s first 90 days of service and/or every three years thereafter. AMD has approximately 90,000 employees worldwide for a total of 90,000 hours of training. All employees also receive an annual reminder email regarding the Standards, including a link to AMD’s Worldwide Standards of Business Conduct.

404-2 Programs for upgrading employee skills and transition assistance programs

People

AMD offers a “My Career” intranet page to employees that provides tools and tips to manage their careers. This includes Career Development, Education & Training. In addition, AMD offers an e-learning for professional development that are available 24x7 from anywhere in the world. The e-learning resources include courses & videos from SkillSoft and Lynda.com, book summaries from getAbstract, stimulating articles from Harvard Business Review, and technical and engineering books from Safari Books Online.

103-1 Explanation of the material topic and its boundary

People

Human Rights & Labor Issues

Worldwide Standards of Business Conduct

AMD is committed to providing all employees with the same opportunities for success regardless of age, ancestry, color, marital status, medical condition, mental or physical disability, national origin, race, religion, political and/or third-party affiliation, sex, pregnancy, sexual orientation, gender identity, military or veteran status. Therefore, AMD employees are prohibited from making employment-related decisions based on any of these factors. We emphasize a workplace in which all employees can contribute fully to the company’s success based in their skills and interests.

103-2 The management approach and its components

People

Human Rights & Labor Issues

Worldwide Standards of Business Conduct

The company values respect, integrity, initiative, accountability, and innovation in support of our customers’ success. Based on these values, we know that:
• Business success is created when the company recruits and develops the most talented people and rewards them for their contributions.
• The company’s customers are best served by employees who have a variety of perspectives.
• Innovation comes from different perspectives and ideas.

103-3 Evaluation of the management approach

People

Human Rights & Labor Issues

Worldwide Standards of Business Conduct

AMD publicly reports data on the makeup of our employee base and other topics in alignment with the Global Reporting Index. Periodic assessments of performance are tracked and used to drive continuous improvement.

The AMD AlertLine is operated by an external, third-party vendor that has trained professionals to take reports, in confidence, and report concerns to AMD’s Corporate Compliance Committee for appropriate action.

405-1 Diversity of governance bodies and employees

Data Tables

 

AMD publicly reports gender diversity figures annually.
2017 Global Employee Data

  • Total Workforce: 24% Female
  • Senior Management: 12% Female
  • Engineering: 17% Female

AMD does not currently report on other employee minority group representation.

GRI 406: NON-DISCRIMINATION

103-1 Explanation of the material topic and its boundary

 

Governance 

Human Rights & Labor Issues

Worldwide Standards of Business Conduct

 

AMD is committed to providing a workplace where all employees have the opportunity to contribute fully to the Company’s success. An environment that is free of harassment and discrimination and built on respectful relationships in the workplace enables the Company to meet this commitment.

103-2 The management approach and its components

 

Governance 

Human Rights & Labor Issues

Worldwide Standards of Business Conduct

 

AMD has a zero-tolerance policy against harassment, including sexual harassment, and discrimination based on age, ancestry, color, marital status, medical condition, mental or physical disability, national origin, race, religion, political and/or third party affiliation, sex, sexual orientation, gender identity or veteran status. The Company also prohibits employees from retaliating against an individual who reports what he or she believes in good faith to be such harassment or discrimination in the workplace. 

103-3 Evaluation of the management approach

 

Governance 

Human Rights & Labor Issues

Worldwide Standards of Business Conduct

 

The AMD AlertLine is operated by an external third party vendor that has trained professionals to take reports, in confidence, and report concerns to AMD’s Corporate Compliance Committee for appropriate action.

406-1 Incidents of discrimination and corrective actions taken

NA

AMD is unaware of any such corroborated incident during or related to 2017.

GRI 407: FREEDOM OF ASSOCIATION
AND COLLECTIVE BARGAINING

103-1 Explanation of the material topic and its boundary

 

RBA’s Code of Conduct 

RBA Code Letter

Supplier Assurance Letter

 

AMD has formally adopted the Responsible Business Association’s Code of Conduct, which includes respecting worker's rights to freedom of association and collective bargaining, and open communication / engagement between workers and management. AMD shares the expectation that our suppliers do the same through contracts, an annual assurance letter and a due diligence program.

103-2 The management approach and its components

NA

AMD posts federal notices of worker's rights to freedom of association and collective bargaining in corporate bulletin boards across the AMD sites.

103-3 Evaluation of the management approach

 

Our Approach

Human Rights & Labor Issues

 

AMD publicly reports on labor issues and other topics in alignment with the Global Reporting Index. Periodic assessments of performance are tracked and used to drive continuous improvement.

407-1 Operations and suppliers in which the right to freedom of association and collective bargaining may be at risk

 

Our Approach

RBA’s Code of Conduct 

Human Rights & Labor Issues

No incidents related to workers’ rights to freedom of association and collective bargaining were found or alleged via any court or administrative agencies during or related to 2017.

GRI 408: CHILD LABOR

103-1 Explanation of the material topic and its boundary

 

Human Rights & Labor Issues

Our Approach

 

AMD is committed to respecting its employees’ human rights. AMD does not allow the use of forced labor in providing its products or services and prohibits physical abuse or harassment and retaliation against employees reporting harassment amongst its employees. The Company strictly forbids child labor and forced/compulsory labor practices in any AMD operation or our business partners and suppliers.

103-2 The management approach and its components

 

Worldwide Standards of Business Conduct

RBA’s Code of Conduct 

RBA Code Letter

 

AMD’s Worldwide Standards of Business Conduct strictly forbid child labor and forced/compulsory labor practices. Furthermore, AMD has formally adopted the Responsible Business Association’s Code of Conduct, which defines responsible business practices for “young workers.”

103-3 Evaluation of the management approach

Human Rights & Labor Issues

Our Approach

AMD publicly reports on labor issues and other topics in alignment with the Global Reporting Index (GRI). Periodic assessments on performance are tracked and used to drive continuous improvement.

408-1 Operations and suppliers at significant risk for incidents of child labor

Our Approach

We track risk categories and prioritize specific types of corporate responsibility risk based on the operation, location, and results of prior reviews. Certain geographic locations and business operations are known to be more prone to these types of abuses and are given added scrutiny. AMD is unaware of any incident related to forced or compulsory labor related to 2017.

GRI 409: FORCED OR COMPULSORY LABOR

103-1 Explanation of the material topic and its boundary

 

Human Rights & Labor Issues

Our Approach

RBA’s Code of Conduct 

RBA Code Letter

Forced Labor and Human Trafficking

 

AMD does not permit the use of forced labor in providing our products or services, and we prohibit physical abuse or harassment and retaliation against employees reporting harassment. We strictly forbid child labor and forced/compulsory labor practices in any AMD operation or by our business partners and suppliers.

103-2 The management approach and its components

 

Worldwide Standards of Business Conduct

RBA’s Code of Conduct 

RBA Code Letter

 

AMD’s Worldwide Standards of Business Conduct strictly forbid child labor and forced/compulsory labor practices. Furthermore, AMD has formally adopted the Responsible Business Association’s Code of Conduct, which defines expectations for freely chosen employment.

103-3 Evaluation of the management approach

 

Data Tables

Our Approach

 

AMD publicly reports metrics, KPIs and targets on EHS, labor and other topics in alignment with the Global Reporting Index (GRI). Periodic assessments on performance are tracked and used to drive continuous improvement.

409-1 Operations and suppliers at significant risk for incidents of forced or compulsory labor

Our Approach

We track risk categories and prioritize specific types of corporate responsibility risk based on the operation, location, and results of prior reviews. Certain geographic locations and business operations are known to be more prone to these types of abuses and are given added scrutiny.

AMD is unaware of any incident related to forced or compulsory labor related to 2017.

GRI 412: HUMAN RIGHTS ASSESSMENT

103-1 Explanation of the material topic and its boundary

 

Human Rights & Labor Issues

Our Approach

 

AMD does not permit the use of forced labor in providing our products or services, and we prohibit physical abuse or harassment and retaliation against employees reporting harassment. We strictly forbid child labor and forced/compulsory labor practices in any AMD operation or by our business partners and suppliers. AMD is also committed to breaking the link between the mineral trade and ongoing conflicts and human rights abuse in Central Africa.

103-2 The management approach and its components

Worldwide Standards of Business Conduct

Our Worldwide Standards of Business Conduct outline our expectations for ethical conduct and human rights commitments both for our own operations and for our suppliers. Training on these standards is required every two years for all AMD employees. Employees who manage supplier business relationships are required to take additional supply chain responsibility training courses.

103-3 Evaluation of the management approach

 

Human Rights & Labor Issues

Our Approach

RBA’s Code of Conduct 

Supplier Assurance Letter

 

While our global supply chain model supports productivity and efficiency, it can obscure systemic issues regarding the organization and management of human workers. We have a vested stake in ensuring that our goods are produced in a humane manner—not just to meet consumers’ interest in responsible goods but also to help build sustainable economic models based on the values of human rights and global citizenship.
We work with our suppliers to help them improve. Supplier business reviews provide a regular forum where senior leaders from both companies come together to discuss topics relevant to our business relationship. To ensure that our responsibility standards are being upheld, we ask our suppliers to extensively report on their performance, and review third-party audit information. Our base level expectation is that each supplier providing manufacturing materials and/or services to AMD will demonstrate conformance to the standards outlined in the Code of Conduct we adopted, as well as any local labor, environmental, or health and safety regulations. We further expect that each supplier will, in turn, communicate to their suppliers the same expectations and implement reasonable mechanisms to monitor their compliance.

412-1 Operations that have been subject to human rights reviews or impact assessments

 

Our Approach

Supplier Assurance Letter

All manufacturing suppliers are subject to supply chain responsibility risk assessment that includes potential human rights abuses.

412-2 Employee training on human rights policies or procedures

Our Approach

 

100% of AMD’s supplier managers have completed RBA Supply Chain Responsibility training as of July 2018. We also require employees who manage manufacturing supplier relationships to take specific training aimed at recognizing forced labor conditions.

GRI 413: LOCAL COMMUNITIES

103-1 Explanation of the material topic and its boundary

Community Affairs

AMD helps empower people to live more productive lives, not only through the power of its products, but also through the power of its employee volunteers, the AMD Community Corps. Every year, hundreds of our AMD employees give their time and talents to help improve the community where they live and work.

103-2 The management approach and its components

Community Affairs

For more than 35 years, AMD has invested money, time, and technology in organizations that help strengthen communities worldwide. This support is ongoing, but we also focus our resources annually for our Day of Service.

103-3 Evaluation of the management approach

Community Affairs

We work closely with community partners to measure the shared value created through our work. We periodically survey our employees worldwide to understand their overall satisfaction, specifically asking them about their impressions of our community engagement programs.

413-1 Operations with local community engagement, impact assessments, and development programs

Community Affairs

 

 

Employees from 20 sites around the world volunteered for the 3rd Annual AMD Cares Day of Service in 2017. All told, 1,600 employees voluntee​red for more than 67 projects benefiting the community.

GRI 414: SUPPLIER SOCIAL ASSESSMENT

103-1 Explanation of the material topic and its boundary

 

Our Approach

Human Rights & Labor Issues

 

AMD’s supply chain, like the rest of the IT industry, is global in nature. While our global supply chain model supports productivity and efficiency, it can obscure systemic issues regarding the organization and management of human workers. We have a vested stake in ensuring that our goods are produced in a humane manner—not just to meet consumers’ interest in responsible goods but also to help build sustainable economic models based on the values of human rights and global citizenship.

103-2 The management approach and its components

 

Our Approach

RBA’s Code of Conduct 

Supplier Assurance Letter

 

We work with our suppliers to help them improve. Supplier business reviews provide a regular forum where senior leaders from both companies come together to discuss topics relevant to our business relationship. To ensure that our responsibility standards are being upheld, we ask our suppliers to extensively report on their performance, and review third-party audit information. Our base level expectation is that each supplier providing manufacturing materials and/or services to AMD will demonstrate conformance to the standards outlined in the Code of Conduct we adopted, as well as any local labor, environmental, or health and safety regulations. We further expect that each supplier will, in turn, communicate to their suppliers the same expectations and implement reasonable mechanisms to monitor their compliance.

103-3 Evaluation of the management approach

Our Approach

We track all risk categories and prioritize specific types of CR risk based on the operation, location and results of prior reviews. Certain geographic locations and business operations are known to be more prone to these types of abuses and are given added scrutiny.

414-2 Negative social impacts in the supply chain and actions taken

 

RBA’s Code of Conduct 

RBA Code Letter

Data Tables

AMD adopted the Responsible Business Alliance (RBA, formally the EICC) Code of Conduct. In 2017 we communicated our expectations to our manufacturing suppliers that they conform to the Code. In 2017, 96% of our major supplier facilities completed their RBA SAQ and no high-risk supplier facilities were identified.

GRI 415: PUBLIC POLICY

103-1 Explanation of the material topic and its boundary

Public Policy

AMD’s commitment to public policy participation includes working with governments and authorities, non-governmental organizations (NGOs), trade associations and other groups to deepen our understanding of issues and diverse perspectives, as well as to share our experience and expertise as part of an informed public policy development process.

103-2 The management approach and its components

Public Policy

We are actively engaged in a number of public policy efforts that are pertinent to our business, our industry and users of AMD technology everywhere. Some of these public policy priorities for AMD include:

  • Environmental Protection
  • Energy Efficiency and Greenhouse Gas Emissions
  • Secure Technology
  • Competition and Market Access
  • Principle Industry and Business Association

103-3 Evaluation of the management approach

Stakeholder Engagement

AMD drives collaboration and innovation in the technology sector. Acting alone, even companies many times our size can only have limited influence. Meaningful improvement in corporate citizenship requires collaboration on a global scale. As such, we work with our industry associations to engage on pertinent public policy issues and measure success.

415-1 Political contributions

Data Tables

 

AMD made no corporate contributions in 2017.

GRI 418: CUSTOMER PRIVACY

103-1 Explanation of the material topic and its boundary

Data Privacy & Security

AMD Processor Security Updates

A confluence of changing conditions makes data protection a top concern for organizations of every size and specialty. Innovations in network infrastructure have brought new capabilities through cloud computing and the Internet of Things, but have simultaneously expanded the attack surface and introduced potential vulnerabilities. At the same time, today’s threat landscape continues to aggressively expand and evolve as cyber criminals devise new and better methods for exploiting security weaknesses or technological innovations.

103-2 The management approach and its components

 

Data Privacy & Security

AMD Processor Security Updates

 

In response to the potential increase in security issues, it’s no surprise that cybersecurity remains a top priority at AMD. This commitment extends across all tiers and work groups within our company—from policies that govern our corporate operations, to technologies and practices that keep our intellectual property and the information we hold safe, to products that support stronger protections for our customers.

103-3 Evaluation of the management approach

 

AMD Processor Security Updates

At AMD, security is a top priority and we are continually working to ensure the safety of our users as new risks arise. Recent public disclosures have brought to the forefront the constant need to protect and secure data.

418-1 Substantiated complaints concerning breaches of customer privacy and losses of customer data

AMD Processor Security Updates

Please visit https://www.amd.com/en/corporate/security-updates for more information. This site is a centralized location for the latest security-related updates as they relate to AMD.

GRI 419: SOCIOECONOMIC COMPLIANCE

103-1 Explanation of the material topic and its boundary

 

 

Worldwide Standards of Business Conduct

Governance 

 

AMD adheres to our business, financial reporting, and accounting practice requirements, and those specified by the laws in each country where we conduct business. We expect Company employees and agents to follow Company policies and employ the highest ethical standards.

103-2 The management approach and its components

 

Worldwide Standards of Business Conduct

Governance

 

Please see our Worldwide Standards of Business Conduct (page 6).

103-3 Evaluation of the management approach

Worldwide Standards of Business Conduct

Code of Ethics

Governance 

 

Business and Accounting and Financial Reporting Principles
The Executives will maintain Company transaction and reporting systems and procedures to ensure:
• The Company adheres to the legal business and accounting practice requirements of each country and location in which it conducts business.
• No undisclosed or unrecorded Company fund or asset is established for any purpose.
• The Company’s books and records contain no false or misleading entries.
• No payment is made on the Company’s behalf without adequate support documentation or for any purpose other than as described in the documents.
• Business transactions are properly authorized and completely and accurately recorded in accordance with Generally Accepted Accounting Principles (GAAP) and pertinent
Company policies.
• The Company adheres to financial reporting requirements set forth in the laws and regulations that govern the Company’s business. In this regard, Executives will ensure that accurate financial statements and disclosures of Company operations, financial conditions and cash flows are prepared, and that periodic financial reports are filed in a timely manner and in a manner that facilitates the highest degree of clarity of content and meaning.
• The Company prepares documents, as may be required, certifying the appropriateness and accuracy of the statements and disclosures in periodic Company financial reports.
• The Company discloses on a timely basis, as may be required, of all material transactions and relationships that may have a material current or future effect on the Company’s business, financial condition and/or results of operations.

419-1 Non-compliance with laws and regulations in the social and economic area

2017 Annual Report

Data Tables

 Please see our 10k (p37).

Footnotes

1. In some cases, the page/URL references link to content from our 2016 corporate responsibility web pages. In August 2018, this index will be revised and published with references to our 2017 corporate responsibility web pages.