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AMD Wins Latest Green Race Against Intel

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Environmental responsibility may be one area where AMD (s AMD) is beating Intel (s INTC) these days. Its 8th Global Climate Protection Plan, released early this morning, details significant energy and emissions reductions that surpass goals set out in previous plans.

The plan also underscores the benefits of the company’s LEED Gold-targeted Austin Lone Star campus and announces its intention to begin measuring its greenhouse gas emissions through Scope 3, the highest level of the Greenhouse Gas Protocol developed by the World Resources Institute and the World Business Council for Sustainable Development. Under Scope 3, companies have to track carbon impacts not only of their direct impacts but also indirect impacts — from suppliers to employees to product life-cycle impacts. It’s a move AMD senior strategist Larry Vertal told us is “not for sissies, which is why so many other companies have not yet considered addressing it.”

Back in 2000, AMD infamously beat Intel to the 1GHz punch, a move Vertal describes as “resetting the industry from performance to performance per watt,” but since then AMD has slowly been losing ground to its primary competitor. Despite modest gains in the graphics processor unit (GPU) market reported yesterday and the sale of majority ownership of its factories to Abu Dhabi’s Advanced Technology Investment Co., the chipmaker’s stock is still hovering below $3 a share, a 70 percent drop from its 52-week high.

In its latest race against Intel — the 45nm sprint — AMD is trailing, according to various reports. Still, the manufacturing deal frees up capital and enables AMD to work more smoothly with its partners in the IBM Alliance, both of which could positively affect the company’s bottom line. And measuring its Scope 3 emissions with the goal of reducing them could eventually help AMD reduce costs, further freeing up cash flow.

6 Responses to “AMD Wins Latest Green Race Against Intel”

  1. This is interesting piece. AMD’s ongoing strategy and goals to maximize energy efficiency, help lower costs and minimize its environmental impact is a significant contribution to address global climate change.

    This also comes on the heels of the announcement that the Intel Corporation received a 2008 Green Power Leadership Award and was also named a Green Power Partner of the Year by the U.S. Environmental Protection Agency (EPA). The EPA recognized Intel’s voluntary efforts to address climate change through green power purchases and its impact in advancing the renewable energy market.

    Both initiatives are models for other organizations to consider to respond to our current environmental challenges.