Intel allocates more than $400m in green bond funding

Intel has invested $425m in green bond proceeds across energy and water efficiency, circular economy, and waste management projects, in a bid to achieve net-zero greenhouse-gas (GHG) emissions across global operations by 2040.

Intel allocates more than $400m in green bond funding

Pictured: Intel's Ocotillo Brine Reduction Facility in Arizona

Green bonds are fixed-income financial instruments used to support projects that advance a low-carbon, resource-efficient, or socially sustainable future.

Intel confirmed this week that it has allocated the green bond funds across various project categories, including circular economy and waste management ($21m), renewable energy ($39m), energy efficiency ($51m), water stewardship ($99m), and pollution prevention and control ($215m).

The environmental impacts of these projects are calculated using internal measurements, project tracking, and emission factors such as International Energy Agency (IEA) carbon dioxide equivalent (CO2e) emission factors and World Resources Institute (WRI) GHG protocol.

During 2021-2022, Intel reduced 5.3 million metric tons of GHG emissions (as CO2e), saved 59 million kilowatt-hours (kWh) of energy, conserved 4.5 billion gallons of water, and diverted 56,000 tons of waste from landfills, with an additional 1,900 tons of waste reduction.

In line with its long-term energy conservation objectives, Intel has set a target to conserve 4 billion kWh of energy from its 2020 baseline by 2030.

The tech company has pledged an investment of $300m in energy conservation projects. These projects have already yielded positive results, with new energy conservation projects saving approximately 162 million kWh in 2021 and 160 million kWh in 2022.

Intel’s commitment to environmental sustainability extends to its manufacturing facilities, where point of use (POU) abatement technologies have been installed, reducing Scope 1 and 2 GHG emissions by 80% over the last decade.

Looking forward, Intel has set Scope 1 and 2 GHG reduction targets of 10% from 2019 levels by 2030, with the ultimate goal of reaching net-zero GHG emissions across all global operations by 2040.

In a recent announcement, Intel expanded its net-zero commitment to cover upstream and downstream Scope 3 (indirect) emissions by 2050.

Water impact

Intel has also pledged to achieve a net-positive water impact by 2030.

Over the past two years, the company conserved approximately 19 billion gallons of water through operational and community partnerships, while also funding projects that facilitated the restoration of more than five billion gallons.

For example, Intel’s water reclaim facility, Ocotillo, located in Arizona, conserved over 6.3 billion gallons of water in 2021 and 2022.

According to a recent analysis by Linklaters’ Debt Capital Markets, green bond issuance exceeded a $350bn between January and June, setting the stage for a potential record-breaking year in 2023.

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