Climate Change Data

Environmental Metrics

ESG Focus Areas

• Sustainability
• Social Responsibility
• Philanthropy
• Stewardship
• Environmental Responsibility
• Employee Well-being
• Community Commitment
• Responsible Advocacy
• Corporate Governance

Environmental Achievements

• Decreased energy required to design, market and manufacture a semiconductor chip by 24 percent
• Decreased water required to design, market and manufacture a semiconductor chip by 20 percent
• Recycled 95 percent of waste
• Achieved LEED gold certification for new assembly/test facility in Clark, Philippines
• Reduced nitrogen oxide emissions by shutting down old equipment and using advanced abatement systems
• Invested $6 million in efficiency projects, saving $3.7 million in annual energy costs
• Finalized agreement to source about 10 percent of electricity used by Texas sites from renewable resources
• Reused 1.5 billion gallons of water

Social Achievements

• Named to Working Mother Magazine’s Hall of Fame for 15th consecutive year
• Granted $28.2 million in cash and in-kind donations to support education, cultural and community initiatives
• Received the National Association of Software and Service Companies’ Social Innovation Award
• Maintained one of the best safety rates among U.S. Semiconductor Industry Association members
• Scored 100 percent for the third consecutive year on the Human Rights Campaign Foundation’s U.S. Corporate Equality Index
• Increased salaries following a wage freeze in 2009
• Paid 17.3 percent profit sharing to all employees globally (except France and Mexico)
• Enabled employees to donate 31,383 hours of volunteer time

Governance Achievements

• Rolled out a computer-based ethics and compliance awareness program to 99.1 percent of the workforce
• Included on the “World’s Most Ethical Companies” list for the fourth consecutive year

Climate Goals & Targets

Environmental Challenges

• Conflict minerals legislation
• Climate change management
• Water use
• Energy use
• Renewable energy

Mitigation Strategies

• Put processes in place to comply with new conflict minerals legislation and identify alternative sources
• Established the company’s first greenhouse gas (GHG) emissions reduction goal
• Formalized global energy strategy including operating efficiency improvement, renewable energy procurement and employee involvement
• Invested in water conservation programs

Supply Chain Management

Responsible Procurement

• Processes in place to comply with new conflict minerals legislation
• Spent 5.1 percent of total U.S. procurement dollars with certified minority- and women-owned suppliers

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G3 Guidelines

Awards & Recognition

• Dow Jones Sustainability Index – North America
• Best Corporate Citizens list – CR Magazine
• Most Ethical Companies list– Ethisphere Institute
• Green Rankings list – Newsweek
• Most Admired Companies list - Fortune
• Global Sustainability 50 Index – NASDAQ OMX CRD
• Working for Clean Air Award from the North Texas Clean Air Coalition
• Talent Development Innovator Award by the Association of Educational Publishers
• Top 50 Companies for Executive Women by the National Association for Female Executives
• Most Admired Employer by U.S. Black Engineer, Hispanic Engineer and Women of Color magazines

Environmental Metrics

ESG Focus Areas

• Sustainability
• Social Responsibility
• Philanthropy
• Stewardship
• Company Operations
• Product Stewardship
• Environmental Responsibility
• Employee Well-being
• Community Commitment
• Responsible Advocacy
• Corporate Governance

Environmental Achievements

• 134 energy-efficiency and water conservation projects that saved $8.6 million in utility costs
• 1.5 billion gallons of water recycled
• 92 percent of waste recycled
• Reduced nitrous oxides emissions by shutting down old equipment, and using advanced burner technology and abatement systems
• Reduced chlorofluorocarbon refrigerant leak rate from 7.27 percent to 4.8 percent

Social Achievements

• $22.2 million contributed to education improvement and local communities
• $14.6 million for more effective science and math education
• Almost $1 million contributed to disaster relief in Japan
• A new supplier environmental and social responsibility policy
• Achieved the best safety rate in the U.S. semiconductor industry
• Reduced the on-the-job recordable injuries rate to 0.19 per 100 employees
• Named by Working Mother Magazine as one of its 100 Best Companies for Working Mothers for the 16th consecutive year
• Enabled 60 percent of our workforce to telecommute
• Increased salaries and paid about 17.3 percent of profit sharing
• Increased new college graduate hires worldwide by 75 percent
• Successfully resolved five allegations of discrimination filed by employees and contractors

Governance Achievements

• Provided ethics and compliance awareness training to 99.2 percent of employees
• Experienced no material incidents and received no material fines due to noncompliance with environmental, labor or human rights laws
• Received no formal allegations of suspected bribery or corruption

Climate Goals & Targets

Environmental Challenges

• Devastating earthquake and tsunami in Japan
• Global economic uncertainty
• Flooding in Thailand
• Increased energy use from expanded TI operations
• Increased total water use globally due to the addition of several new facilities
• Slight increase in employee-initiated turnover

Mitigation Strategies

• Mitigated production and supply-chain impacts resulting from the March earthquake and tsunami in Japan, and flooding in Thailand
• Launched a supplier risk solutions portal
• Strengthened our ability to meet customers’ needs through the acquisition of National Semiconductor and use of its global suppliers
• Implemented efficiency projects that saved about 467 million gallons of water and $1.5 million
• Reused 1.5 billion gallons of water
• Developed a new health and safety metrics tracking system

Supply Chain Management

Supplier Audits: 22 in-depth assessments of critical suppliers

Responsible Procurement

• New supplier environmental and social responsibility policy
• Expanded supply-chain assessments to include suppliers’ programs and performance related to human rights

Climate-Related Risks & Opportunities

Physical Risks

• Earthquake and tsunami in Japan
• Flooding in Thailand

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Global Reporting Initiative’s (GRI) Sustainability Reporting G3 Guidelines

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• TI-Nspire CX calculator with rechargeable batteries
• PowerStack™ packaging technology

Awards & Recognition

• Dow Jones Sustainability Index – North America
• 100 Best Corporate Citizens by CR Magazine
• World’s Most Ethical Companies by the Ethisphere Institute
• Global Most Admired Companies list by Fortune Magazine
• Green Rankings list by Newsweek Magazine
• Global 1000 Sustainable Performance Leaders by CRD Analytics

Environmental Metrics

ESG Focus Areas

• Company operations
• Product stewardship
• Environmental responsibility
• Employee well-being
• Community commitment
• Responsible advocacy
• Corporate governance

Environmental Achievements

• Reduced chlorofluorocarbons refrigerant leak rate from 4.8 percent in 2011 to 2.8 percent
• Implemented 181 energy-efficiency projects that prevented 46,000 metric tons of carbon dioxide from entering the atmosphere
• Reused 1.8 billion gallons of water (a 20 percent increase)
• Improved total waste recycling to 93 percent
• Reduced polyvinyl chloride content of retail packaging by 55 percent in about 1 million Education Technology products
• Replaced printed instruction manuals for about 1.5 million graphing calculators with digital versions

Social Achievements

• Achieved among the safest performance records in the U.S. semiconductor industry with a 0.24 on-the-job recordable incident rate
• Named by the National Business Group on Health as platinum winner of the 2012 Best Employers for Healthy Lifestyles Awards
• Launched a 12-12-12 campaign to encourage employee health and wellness
• Named by Working Mother Magazine as one of its “100 Best Companies for Working Mothers” for the 17th consecutive year
• Increased female hires by 23 percent
• Launched a Veterans Diversity Initiative
• Granted $30.4 million to local community organizations
• Enabled employees to contribute almost 47,000 hours of volunteer time

Governance Achievements

• Adopted a new protection of personal data policy
• Experienced no material incidents and received no material fines due to noncompliance with environmental, labor or human rights laws
• Provided ethics and compliance awareness training to all employees; 98.7 percent completed the course

Climate Goals & Targets

Environmental Challenges

• Increased emissions of volatile organic compounds in the U.S. by an estimated 11 percent
• Increased nitrogen oxides emissions from U.S. sites by 3.7 percent
• Increased carbon footprint 1.5 percent
• Increased energy use 5 percent
• Increased water use 9 percent
• Increased ergonomics-related injuries

Mitigation Strategies

• Assessed facility systems, including air quality controls, to address opportunities for improvement
• Worked with the U.S. Environmental Protection Agency (EPA) to identify and develop workable and more accurate GHG accounting methodologies
• Implemented 217 energy and water efficiency projects resulting in annualized savings of $10.1 million
• Joined the U.S. Department of Energy’s Better Plants program
• Consolidated product volume, optimized shipping network, and negotiated better prices to save on transportation costs
• Developed a new health and safety metrics tracking system

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Updated supplier environmental and social responsibility policy
• Exceeded goal of spending at least 5 percent of U.S. procurement dollars with minority- and women-owned suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI G3 Guidelines

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Energy meter integrated circuits
• Smart meter system-on-chip and platform
• Low-voltage motor drivers
• Ultra-low-power microcontroller
• SafeTI™ functional safety platform
• DLP® LightCrafter™ design platform

Awards & Recognition

• Dow Jones Sustainability Indexes (North America component)
• CR Magazine (100 Best Corporate Citizens, 10 Best in IT)
• Ethisphere Institute (World’s Most Ethical Companies)
• Fortune Magazine (World’s Most Admired Companies)
• Thomson Reuters (Top 100 Global Innovators)
• Newsweek Magazine (Green Rankings)
• Working Mother Magazine (100 Best Companies for Working Mothers)
• Minority Engineer Magazine (Top 50 Employers)
• National Association for Female Executives (Top 50 Companies for Executive Women)
• Woman Engineer Magazine (Top 50 Employers)

Environmental Metrics

ESG Focus Areas

• Responsible supply chain
• Community support
• Innovation
• Energy efficiency
• Employee well-being
• Diversity and inclusion
• Ethical business practices
• Climate change
• Water use
• Waste management

Environmental Achievements

• Decreased total energy use by 4 percent despite increased production
• Achieved a 23 percent reduction in normalized energy use from the 2010 baseline
• Reused 28 percent of total water consumption
• Completed 46 water-saving projects reducing water use by 2.6 million gallons
• Achieved a 90 percent total waste recycling rate
• Reduced energy required, water extracted and emissions-per-chip produced by 7 percent or more (on average) since 2005

Social Achievements

• Contributed a record $7.4 million to United Way in the U.S.
• Global employee volunteer hours increased more than 50 percent
• Invested more than $36 million to support access to education globally
• Launched Performance Matters, a global performance-management campaign
• Provided competitive compensation, professional development and growth opportunities, a diverse and inclusive workplace, and flexible work arrangements resulting in leading retention rates

Governance Achievements

• Established the Citizenship Executive Committee (CEC)
• Strengthened the Citizenship Stakeholders Team
• Completed an internal audit of report-development and data-collection processes
• Revised employee code of conduct
• Achieved broad recognition for ethical practices and commitment to citizenship (Ethisphere Institute, CR Magazine, Dow Jones Sustainability Indices)

Climate Goals & Targets

Environmental Challenges

• Shortage of qualified STEM applicants
• Employee turnover in the semiconductor industry, particularly in Asia
• Risks related to the availability of resources (water and metals) in the supply chain
• Supply disruptions and price volatility for key materials
• Increased pressure to use energy-efficient products and reduce emissions
• Changes in climate change-related legislation

Mitigation Strategies

• Investing in education in communities to prepare future talent
• Revamping onboarding processes and providing targeted training for managers to improve retention in Asia
• Working closely with suppliers to address and mitigate potential risks
• Developing low-power solutions and energy-efficient technologies
• Monitoring risks and preparing for potential business impacts to minimize interruption
• Implementing energy-efficiency projects and other initiatives to reduce GHG emissions

Supply Chain Management

Supplier Audits: 157 major production suppliers completed EICC self-assessment questionnaires

Responsible Procurement

• TI supplier code of conduct
• Supplier environmental and social responsibility policy
• CETRAQ scorecard
• Conflict-Free Sourcing Initiative (CFSI)

Climate-Related Risks & Opportunities

Physical Risks

• Prolonged droughts (Texas and China)
• Hurricanes, tornadoes, and typhoons (Texas, Asia, and Japan)

Transition Risks

• Changes in climate change-related legislation

Opportunities

• Investments in energy efficiency

Reporting Standards

Frameworks Used: GRI G4 Sustainability Reporting Guidelines (Core level)

Certifications: ISO 14001, BS OHSAS 18001:2007

Sustainable Products & Innovation

• Low-power semiconductor chips
• Energy-efficient power management ICs
• Sensor technologies
• Solar microinverter development kit
• LED matrix manager IC for adaptive automotive headlight systems

Awards & Recognition

• World’s Most Ethical Companies (Ethisphere Institute)
• 100 Best Corporate Citizens (CR Magazine)
• 10 Best Corporate Citizens, Information Technology sector (CR Magazine)
• North America Component, Dow Jones Sustainability Indices
• Top 100 Global Innovators (Thomson Reuters)
• Fortune Magazine, “World’s Most Admired Companies”
• 2020 Women on Boards, “Winning ‘W’ Company”
• Alliance for Work-Life Progress, “Work-Life Seal of Distinction”
• Black EOE Journal, “Top LGBT-Friendly Companies”
• CareerBliss, “50 Happiest Companies in America”
• Glassdoor, Employees’ Choice Awards, “50 Best Places to Work”
• Human Rights Campaign Foundation, “Best Places to Work for LGBT Equality”
• Minority Engineer magazine, “Top 50 Employers”
• National Association for Female Executives, “Top Companies for Executive Women”
• Professional Woman’s Magazine, “Top Diversity Employers”
• Universum, “Top 100 Employers”
• Newsweek Green Rankings, “Greenest Companies”
• Outstanding Industrial Property Manager (Long Creek Watershed District)
• Governor’s Award for Environmental Excellence (Maine Department of Environmental Protection)
• Confederation of Indian Industries, Southern Region, five-star rating
• Philippine Chamber of Commerce and Industry, Special Citation for Excellence in Ecology and Economy
• Taiwan Council of Labor Affairs, First National Occupational Safety and Health Award
• Taiwan Environmental Protection Administration, Enterprise Environmental Protection Award
• United Way of Metropolitan Dallas, Spirit of Caring Award

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance
• Safety
• Ethics
• Supply Chain

Environmental Achievements

• Reduced energy intensity at U.S. manufacturing sites by 39 percent (from a 2010 baseline)
• Increased energy conservation projects by 26 percent, resulting in 270 projects
• Conserved nearly 2.1 billion gallons of water and 1.45 million MMBtu of energy in the last five years
• 100 percent of the metals used to manufacture integrated circuits are from certified conflict-free sources

Social Achievements

• Grew philanthropic and employee charitable giving to $35 million, with $20.6 million invested in education
• Improved tracking and increased employee volunteerism by 22 percent to 159,000 hours
• Achieved exemplary safety performance – among the best in the industry

Governance Achievements

• 92% of board directors are independent
• Provided ethics and compliance awareness training (including anti-corruption) to all employees; 99.9 percent completed the classes

Climate Goals & Targets

Environmental Challenges

• Slightly higher risk in factories in Asia and Japan compared to other regions
• Closure of GFAB manufacturing facility in Greenock, Scotland, impacting approximately 365 jobs

Mitigation Strategies

• Transferring work from Greenock facility to more cost-effective plants in Germany and the U.S.
• Continuous improvement in safety and environmental performance through aggressive processes and goals

Supply Chain Management

Supplier Audits: 100% of suppliers using conflict-free smelters for TI’s integrated circuit products; 7.9% of targeted suppliers completed environmental and social responsibility assessments

Responsible Procurement

• Conflict-free sourcing of metals
• Environmental and social responsibility assessments

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G4 Sustainability Reporting Guidelines (Core level)

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance
• Supply Chain Management
• Community Investment
• Employee Well-being

Environmental Achievements

• Invested in energy conservation projects that saved $6.9 million in energy costs and kept 285,556 million British thermal units (MMBtu) of emissions out of the atmosphere.
• Recycled 33,031 metric tons of materials, an increase of 22 percent over the previous year.
• Reduced energy intensity at U.S. manufacturing sites by 41 percent (from a 2010 baseline).

Social Achievements

• Grew philanthropic and employee charitable giving to $38.7 million, with nearly $25 million invested in education.
• Increased employee volunteerism by 9.2 percent to 173,439 hours.

Governance Achievements

• Board of directors: 85% independent directors, 31% female.

Climate Goals & Targets

Environmental Challenges

• Increased GHG emissions by nearly 0.4 percent (from a 2015 baseline).

Mitigation Strategies

• Continued investment in energy conservation projects.

Supply Chain Management

Supplier Audits: More than 300 supplier sites evaluated.

Responsible Procurement

• Responsible Business Alliance’s Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Severe weather events, droughts

Reporting Standards

Frameworks Used: GRI Standards: Core level

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced absolute Scope 1 and 2 GHG emissions by 15.6% by the end of 2019 (against a 15% goal by 2020).
• Reduced total GHG emissions by more than 10% in 2019.
• Reduced per-chip energy intensity by 62% since 2005.
• Reduced water use by 2.5% in 2019 (exceeding a 2.2% goal).
• Implemented 474 water conservation projects since 2015, saving $11.5 million and over 33.3 billion gallons of water.

Social Achievements

• Recognized for water conservation practices at TI Chengdu, China, saving millions of gallons annually.
• Continued to recycle electronic waste, diverting 258,367 pounds from landfills since 2015.

Governance Achievements

• Maintained ISO 14001 and ISO 45001 certifications.
• Compliance with GHG regulations and reporting to relevant agencies (EPA, CDP, S&P Global Assessment).

Climate Goals & Targets

Environmental Challenges

• Complexities associated with evaluating Scope 3 emissions due to supply chain, employee travel, and distribution network.
• Potential regulatory and physical risks associated with climate change.
• Reducing or eliminating the use of brominated flame retardants (BFRs) and chlorinated flame retardants (CFRs) in semiconductor packaging materials.

Mitigation Strategies

• Offering video conferencing, electric vehicle charging stations, flexible work schedules, and subsidizing mass transit to mitigate Scope 3 emissions.
• Closely tracking global trends in environmental and energy policy, regulatory changes, and extreme weather events.
• Working with industry associations to provide context on potential impact of legislative and regulatory proposals.
• Removing BFRs and CFRs from 90% to 95% of products during the conversion to Pb-free and RoHS compliance.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Compliance with Responsible Business Alliance (RBA) Code of Conduct; screening of incoming materials and chemicals; restrictions and standards related to chemicals in supplier contracts.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Changes in regulations

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: Null

Certifications: ISO 14001, ISO 45001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Semiconductors enabling energy-efficient electronics; smart water meters using TI technology.

Awards & Recognition

• Dow Jones Sustainability Indices, “North America Component”
• 3BL Media, “100 Best Corporate Citizens”
• Fortune magazine, “World’s Most Admired Companies”
• Barron’s “The 100 Most Sustainable U.S. Companies”
• Euronext Vigeo, U.S. 50

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance
• Sustainability

Environmental Achievements

• Reduced greenhouse gas emissions by 22.4% from 2015 to 2020 (exceeding a 15% reduction goal)
• Reduced water usage by 4.4% versus the previous year (exceeding a 2.6% conservation goal)
• Reused or recycled nearly 90% of waste and surplus materials

Social Achievements

• Supported employees during the COVID-19 pandemic with additional paid time off, extended leave benefits, and mental well-being resources
• Donated nearly $50 million to support community needs, including over $16 million to education and over $10 million to COVID-19 relief efforts
• Received a 100% rating from the Human Rights Campaign Corporate Equality Index for the fifth consecutive year
• Received recognition for the 16th consecutive year by the National Association of Female Executives for efforts to advance women

Governance Achievements

• 91% of board members were independent at year-end 2020

Climate Goals & Targets

Environmental Challenges

• Reducing or eliminating the use of essential but potentially harmful compounds (brominated and chlorinated flame retardants, perfluorinated substances, and perfluorooctanoic acid)
• Managing risks associated with the use of critical materials
• Potential risks and opportunities associated with environmental issues (climate change, water availability, etc.)

Mitigation Strategies

• Proactively removed brominated and chlorinated flame retardants from 99% of products
• Stopped using PFOSs in 2015 and planned to eliminate PFOAs from fabrication processes in 2021
• Working with the Semiconductor Industry Association to find safer alternatives
• Continuously monitoring, planning, and training for operational risks (cyberattacks, natural disasters, pandemics, etc.)
• Developing and modifying plans to address risks and training employees on crisis response
• Investing in controls to protect TIers, community, and the environment from harm

Supply Chain Management

Supplier Audits: More than 250 suppliers assessed in 2020; 140 production suppliers with 332 factory locations audited; 95% met expectations.

Responsible Procurement

• Collecting information on suppliers’ human rights practices, environmental and safety records
• Specifying performance requirements and expectations in policies, contracts, and purchase orders
• Adhering to the RBA Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Severe weather
• Water availability
• Flooding

Transition Risks

• Emerging regulations
• Market shifts

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI, CDP, TCFD, SASB

Certifications: ISO 14001, ISO 45001, ISO 9001, ISO/TS 16949

Third-party Assurance: Apex Companies, LLC (limited assurance for Scope 1 and 2 GHG emissions)

Sustainable Products & Innovation

• Microcontrollers for smart thermostats (reducing energy consumption)
• Wireless battery management systems for electric vehicles (improving driving range and reliability)

Awards & Recognition

• Barron's 100 Most Sustainable Companies
• Dow Jones Sustainability Index, North America
• Fortune's World's Most Admired Companies
• Newsweek's America's Most Responsible Companies
• Wall Street Journal's Top 100 Sustainably Managed Companies
• CAREERS and the disABLED magazine's Top 50 Employers
• Human Rights Campaign Corporate Equality Index (100% rating)
• Minority Engineer magazine's Top 50 Employers
• National Association for Female Executives, Top Companies for Executive Women
• Woman Engineer magazine, Top 50 Employers
• Working Mother magazine, 100 Best Companies for Working Mothers

Environmental Metrics

ESG Focus Areas

• Environmental Sustainability
• Sustainable Business Practices
• Workplace
• Community Giving and Volunteering

Environmental Achievements

• Reduced total Scope 1 and 2 greenhouse gas emissions by 18.6% and energy intensity per chip by 33%, both since 2015.
• Reused or recycled 90% of waste and excess materials.

Social Achievements

• Received a 100% rating from the Human Rights Campaign Corporate Equality Index for the sixth consecutive year.
• Donated (along with the TI Foundation, TI employees, and TI retirees) more than $61 million to communities in need, including more than $35 million for education.
• Steady and consistent increase in the number of employees with African American and Hispanic/Latino/x backgrounds in the United States. Employees with African American and Hispanic/Latino/x backgrounds represent 20% of the total US employee population.

Governance Achievements

• Maintained strong governance practices, with a majority of independent directors on the board.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to the global pandemic.
• Increased production leading to higher overall emissions and resource consumption despite per-chip efficiency improvements.

Mitigation Strategies

• Continued investment in emission and energy reduction activities.
• Implementation of water conservation projects exceeding targets.
• Focus on improving energy efficiency through various projects.
• Supplier audits to ensure alignment with RBA Code of Conduct and ethical, sustainable, and social practices.

Supply Chain Management

Supplier Audits: Nearly 300 suppliers audited in 2021

Responsible Procurement

• OECD Due Diligence Guidance for Responsible Supply Chains
• RBA Code of Conduct
• Conflict Minerals Policy
• Human Rights Policy

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI, TCFD, SASB

Certifications: ISO 9001, ISO 14001, ISO 45001, IATF 16949, UL Standards

Third-party Assurance: Apex Companies LLC (limited assurance)

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Energy-efficient products

Awards & Recognition

• Barrons' 100 Most Sustainable Companies
• Dow Jones Sustainability Index, North America
• Newsweek's America's Most Responsible Companies
• The Wall Street Journal's Top Companies for Social Responsibility

Environmental Metrics

ESG Focus Areas

• Environmental Sustainability
• Responsible Business Practices
• Workplace
• Giving & Volunteering

Environmental Achievements

• 23% reduction in Scope 1 & Scope 2 GHG emissions (vs 2015)
• 28% reduction in energy use per chip (vs 2015)
• 3.2% reduction in water use
• 90% waste diverted from landfills

Social Achievements

• 30+ honors for D&I and talent development
• 50.7 average learning hours per employee
• $52.6 million in giving by TI, the TI Foundation, employees, retirees and other giving
• 257,000 hours of employee and retiree time donated to helping others

Governance Achievements

• Board of directors includes 10 independent directors and 33% female representation in 2022
• 100% employee-funded, regulated, transparent and nonpartisan Political Action Committee (PAC)

Climate Goals & Targets

Environmental Challenges

• Slight year-over-year increases in consumption and emissions due to increased production and ramping up of new factories
• Supply chain disruptions

Mitigation Strategies

• Investment in hundreds of projects aimed at reducing environmental impact (advanced manufacturing tools, renewable energy contracts, solar roof installation)
• Strong partnerships with external foundries and subcontractors to offer supply continuity
• Building and positioning inventory globally at strategically located product distribution centers

Supply Chain Management

Supplier Audits: Nearly 230 suppliers evaluated in 2022 (160 production suppliers with 335 factory locations)

Responsible Procurement

• Supplier Code of Conduct
• Supplier Ethics Expectations
• Supplier Environmental and Social Responsibility Policy
• Anti-Human Trafficking Statement

Climate-Related Risks & Opportunities

Physical Risks

• severe weather
• water availability
• flooding

Reporting Standards

Frameworks Used: GRI, TCFD, SASB, CDP

Certifications: ISO 14001, ISO 45001, ISO 9001

Third-party Assurance: ERM Certification & Verification Services Incorporated

Awards & Recognition

• 30+ honors and recognitions in 2022

Environmental Metrics

ESG Focus Areas

• Environmental sustainability
• Workplace
• Community impact
• Supply chain responsibility
• Ethics and compliance
• Governance

Environmental Achievements

• Reduced Scope 1 and Scope 2 GHG emissions by 22% since 2015
• Conserved 264 million gallons of water in 2023 (equivalent to 4.1% of 2022 water use)
• Diverted 84% of materials from landfills in 2023
• Increased renewable electricity used to 19.3% of total energy mix

Social Achievements

• 87% of global employees view TI’s workplace as inclusive (2023 employee engagement survey)
• 28% women in senior leadership roles in the U.S. (2023)
• 23% improvement in women in technical roles worldwide (vs. 2020)
• 36% Black and Hispanic representation in the U.S. workforce (2023)
• More than 2,400 interns welcomed in 2023
• 277,800 employee and retiree volunteer hours in 2023 (valued at ~$8.8 million)

Governance Achievements

• 10 independent directors out of 12 board members at year-end 2023
• TI pays women as much as men in the U.S. and worldwide (2023 compensation analysis)
• TI pays minorities as much as non-minorities in the U.S. (2023 compensation analysis)

Climate Goals & Targets

Environmental Challenges

• Slight increase in absolute scope 1 and scope 2 GHG emissions in 2023 due to ramp-up activities and increased energy use
• Falling short of the 90% landfill diversion goal in 2023
• Regressed on energy intensity goal to reduce energy use per chip by 50% by 2025

Mitigation Strategies

• Investing in more efficient abatement systems and renewable electricity
• Implementing hundreds of water and energy conservation projects
• Installing newer, more efficient manufacturing technologies
• Announced aggressive new targets to expand renewable electricity use to 100% of 300mm factories by 2025, 100% of U.S. operations by 2027, and 100% globally by 2030

Supply Chain Management

Supplier Audits: 265 supplier assessments in 2023, including 175 production suppliers representing 370 factories

Responsible Procurement

• TI Supplier Code of Conduct
• Supplier Environmental and Social Responsibility Policy
• Anti-Human Trafficking Statement
• Responsible Minerals Policy
• RBA Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Severe weather
• Water availability
• Flooding

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI, TCFD, SASB, CDP

Certifications: ISO 14001, ISO 45001, ISO 9001, IATF 16949

Third-party Assurance: ERM Certification & Verification Services (limited assurance for GHG emissions and energy data)

Sustainable Products & Innovation

• Semiconductors for electric vehicles, energy storage systems, and renewable energy applications

Awards & Recognition

• 30+ honors and recognitions for talent development and diversity programs