Climate Change Data

Environmental Metrics

ESG Focus Areas

• Carbon footprint reduction
• Chemical management (processes and products)
• Conflict minerals
• Energy and water reduction
• Human rights
• Supply chain responsibility
• Worker health and safety

Environmental Achievements

• Reduced normalized total emissions for Scope 1 and 2 by approximately 16% between 2010 and 2017.
• Reduced normalized Scope 1 emissions by 16% from a 2010 baseline in 2017.
• Reduced normalized total PFC emissions by over 33% from 2010 to 2017.
• Reduced normalized total electricity emissions by more than 18% from 2010 to 2017.
• Reduced normalized water consumption by more than 23% from 2010 to 2017.
• Increased recycling rate to 76% in 2017 from 65% in 2010.
• Phased out all ozone-depleting substances (ODS) in manufacturing processes by 2007.
• Became PFOS free in 2017.

Social Achievements

• Awarded the 2016 Thomson Reuters Foundation’s Stop Slavery Award for policy and implementation.
• Implemented an "Employer Pays" policy for recruitment fees.
• Audited third-tier labor agents and sub-agents in Indonesia in 2016.
• Conducted training on labor practices and human rights for potential employees in Indonesia.
• Maintained full member status with the Responsible Business Alliance (RBA) in 2017.
• Audited over 100 suppliers since 2013, with 23 audits in 2017.

Governance Achievements

• Established an Ethics Committee to advise on Code of Conduct and investigate allegations of misconduct.
• Implemented monitoring controls to prevent and detect violations of anti-corruption laws.
• Conducted an ethics survey in 2016 with 75% participation and overall positive results.

Climate Goals & Targets

Environmental Challenges

• Reducing PFC emissions in semiconductor manufacturing despite lack of alternatives.
• Ensuring ethical recruitment practices in the supply chain, including addressing passport retention and recruitment fees.
• Maintaining high ethical and social standards across a global supply chain.

Mitigation Strategies

• Collaboration with the semiconductor industry to minimize PFC use and develop alternatives.
• Implementation of an "Employer Pays" policy and rigorous audits of labor brokers.
• Development of a comprehensive Supplier Code of Conduct and regular audits of suppliers.
• Proactive risk assessments and remediation plans for social and environmental issues.

Supply Chain Management

Supplier Audits: Over 100 suppliers audited since 2013, 23 in 2017

Responsible Procurement

• NXP Supplier Code of Conduct
• Annual Supplier Risk Assessments
• NXP Self-Assessments
• Signed conformance letters from suppliers
• Employer Pays policy for recruitment fees

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Certifications: OHSAS 18001 (Health and Safety), ISO 14001 (Environment)

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 9 (Industry, Innovation and Infrastructure)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)
• Goal 8 (Decent Work and Economic Growth)

NXP's technologies and programs contribute to progress against these goals through sustainable energy management, smart technology solutions, responsible supply chain practices, and commitment to worker well-being.

Sustainable Products & Innovation

• Dark Green products (Halogen-free and antimony-free IC packages)

Awards & Recognition

• 2016 Thomson Reuters Foundation’s Stop Slavery Award

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity & Inclusion
• Governance
• Supplier Responsibility
• Employee Health and Safety
• Human Rights

Environmental Achievements

• Reduced perfluorinated compound (PFC) emissions by 22% over 2018 levels; 52% reduction since 2010.
• 17.7% renewable energy consumption.
• 39% water recycled.

Social Achievements

• Positive impact of social responsibility program for foreign migrant workers in Malaysia highlighted in a worker documentary.
• All but one supplier repaid recruitment fees to workers; the remaining supplier is in the process of repayment.
• 90% of employees feel safe at work.
• Injury rate of 0.12 (per 100 employees/working hours).

Governance Achievements

• 99.95% of employees completed Code of Conduct training.
• Board self-assessment process.
• NXP Ethics Committee reviews complaints and grievances.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to ethical and human rights concerns.
• Maintaining a low injury rate in a high-risk industry.
• Reducing carbon footprint while managing production growth.

Mitigation Strategies

• Supplier audits and corrective action plans.
• Proactive safety initiatives and employee engagement.
• Investment in emission reduction technologies and renewable energy.

Supply Chain Management

Supplier Audits: 17 announced audits in 2019, including 4 verification audits.

Responsible Procurement

• NXP Supplier Code of Conduct
• Annual risk assessments
• Third-party audits
• Corrective action plans
• Responsible mineral sourcing

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards, SASB, UN Global Compact

Certifications: ISO 14001, OHSAS 18001 (transitioning to ISO 45001), ISO 9001, IATF 16949

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 9 (Industry, Innovation and Infrastructure)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)

NXP's sustainability work aligns with these goals through products, operations, and engagements.

Sustainable Products & Innovation

• GreenChip resonant solutions
• Energy-efficient microcontrollers

Awards & Recognition

• MSOSH award (Kuala Lumpur site)
• VPP Star Among Stars (Oak Hill site)
• Silver Award for energy savings (Kaohsiung site)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity, Equality and Inclusion
• Governance
• Human Rights
• Health and Safety
• Supply Chain Responsibility
• Product Stewardship

Environmental Achievements

• Met 2020 goal to reduce carbon footprint by 30%
• Reduced absolute emissions of PerFluorinated Compounds (PFCs) by 66% since 2010
• 47% water recycling rate
• Nijmegen wafer fab became the first manufacturing facility to run on 100% renewable energy

Social Achievements

• Appointed a Head of Diversity, Equality and Inclusion
• Achieved a historically low injury rate of 0.08 (per 100 employees/working hours)
• Ranked #5 among 44 companies by the Corporate Human Rights Benchmark and #8 among 49 companies by Know the Chain
• 90% “winning culture” survey response rate
• Supported 41 high-risk suppliers to evaluate their protection of workers’ human rights during COVID-19

Governance Achievements

• Established an ESG Management Board
• 30% female representation on the Board of Directors
• Revised Sustainability Policy

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to COVID-19
• Maintaining energy efficiency despite increased product complexity
• Changes in the recycling landscape impacting waste recycling rates

Mitigation Strategies

• Implemented stringent health and safety protocols across sites
• Transitioned employees to work from home where possible
• Prioritized delivery of medical-device components
• Optimized site-emission reductions, increased abatement projects, and substituted chemicals
• Searched for alternative recycling vendors

Supply Chain Management

Supplier Audits: 4 in 2020 (2 remote, 2 onsite)

Responsible Procurement

• NXP Supplier Code of Conduct
• Supplier risk assessments
• Supplier audits
• Corrective action plans
• Verification audits
• Employer Pays policy

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards, SASB, UN Global Compact

Certifications: ISO 14001, ISO 45001

UN Sustainable Development Goals

• Goal 4 (Quality Education)
• Goal 6 (Clean Water and Sanitation)
• Goal 7 (Affordable and Clean Energy)
• Goal 8 (Decent Work and Economic Growth)
• Goal 9 (Industry, Innovation and Infrastructure)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)

NXP's initiatives contribute to these goals through education programs, water conservation, renewable energy use, ethical labor practices, sustainable product development, waste reduction, and emissions reduction.

Sustainable Products & Innovation

• Energy-efficient chips for power adapters, electric vehicles, smart buildings, and 5G networks
• Intelligent packaging

Awards & Recognition

• Leading Employer Award in Austria and Germany
• Best Employer in the Netherlands
• National Industrial Relations Excellence Award in Taiwan
• National Charity Award from the Ministry of Economic Affairs in Taiwan
• Prevention of COVID-19 Infection Award from the Department of Health in Thailand
• Outstanding Foreign Investment Enterprise Award from the government of Tianjin in China

Environmental Metrics

ESG Focus Areas

• Ethics
• Health and Safety
• Human Rights
• Cybersecurity
• Responsible Supply Chain
• Non-discrimination
• Environmental Impact and Climate Change

Environmental Achievements

• Reduced normalized carbon footprint (Scope 1 & 2) by 11% compared to 2020
• Reduced normalized water consumption by 11% compared to 2020
• 76% waste recycled
• 31% renewable energy use
• Alternative dicing tapes without phthalates

Social Achievements

• Overall employee population grew by nearly 8%, hiring ~8,000 employees, ~3,300 of which were women (1% increase in women employees to 37%)
• 1% increase in women in R&D
• Maintained historically low injury rate of 0.08 for the second year in a row
• 1% increase in Hispanic/Latino and Black/African American representation in the US

Governance Achievements

• Two additional directors joined the Board of Directors with relevant ESG experience
• MSCI ESG rating raised from B+ to AA

Climate Goals & Targets

Environmental Challenges

• Ongoing COVID-19 pandemic
• Surge in semiconductor demand and associated supply shortage
• Historic snowstorm in Texas impacting wafer fabs
• Increased production leading to higher absolute emissions despite normalized reductions
• Water scarcity in some manufacturing locations
• Challenges in achieving higher waste recycling rates due to vendor limitations
• Increased non-greenhouse gas emissions due to the Texas snowstorm and facility expansion

Mitigation Strategies

• Stringent COVID-19 protocols and support for employees
• Investments in energy efficiency, process optimization, and abatement equipment
• Focus on water recycling and conservation
• Search for alternative recycling vendors
• Implementation of new tools to collect HTF emissions
• Supplier engagement and collaboration to address challenges

Supply Chain Management

Supplier Audits: 8 audits in 2021 (3 onsite, 6 remote)

Responsible Procurement

• NXP Supplier Code of Conduct
• Annual supplier risk assessments
• Social responsibility audits
• Supplier training programs
• Corrective action plans

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Water scarcity

Transition Risks

• Increased climate-related regulations
• Changes in energy prices

Opportunities

• Cost savings from sustainability initiatives
• Improved reputation and market share

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UNGC

Certifications: ISO 14001, ISO 45001, ISO 27001

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 8 (Decent Work and Economic Growth)
• Goal 9 (Industry, Innovation and Infrastructure)
• Goal 13 (Climate Action)

NXP's initiatives contribute to these goals through energy efficiency, responsible labor practices, sustainable innovation, and climate action.

Sustainable Products & Innovation

• High-performance i.MX applications processor for energy-efficient machine learning
• Crossover microcontroller for long-lasting wearables
• Battery management solutions for electric vehicles
• GaN technology for energy-efficient 5G

Awards & Recognition

• 2021 Best Place to Work in Austin
• 2021 JUST Company
• Leading Employer Award in Austria
• Industrial Relations Excellence Award in Taiwan
• Excellence In Wastewater Pretreatment Award for Austin, Texas

Environmental Metrics

ESG Focus Areas

• Carbon Neutrality
• Product Sustainability
• Diversity, Equality, and Inclusion
• Ethics
• Health and Safety
• Human Rights
• Cybersecurity
• Responsible Supply Chain
• Environmental Impact and Climate Change

Environmental Achievements

• Reduced normalized carbon footprint (Scope 1 & 2 emissions) by 9% compared to 2021
• Increased renewable electricity usage from 31% in 2021 to 35% in 2022
• Decreased absolute Scope 1 & 2 emissions by 1% compared to 2021
• Recycled 83% of waste, an increase of 7 percentage points compared to 2021
• Recycled 48% of wastewater, an increase of 1 percentage point compared to 2021
• Eliminated Phthalates from Dicing Tapes

Social Achievements

• Grew executive women population by 3 percentage points over the prior year
• Women in R&D roles increased by 2 percentage points in 2022
• US underrepresented minority representation increased by 2 percentage points
• Maintained a low injury rate of 0.10 (per 100 employees/working hours)
• 97% Favorability from Winning Culture Survey Respondents
• Published NXP’s First Human Rights Policy

Governance Achievements

• Created a Chief Sustainability Officer role
• Issued a $1 billion USD Green Innovation Bond
• Incorporated sustainability goals into the Annual Incentive Plan
• AAA MSCI ESG Rating
• Expanded the Nominating and Governance Committee to the Nominating Governance, and Sustainability Committee

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to the Russia-Ukraine conflict and ongoing COVID-19 pandemic
• Scope 3 emissions quantification
• Meeting 2025 representation goals for women and underrepresented minorities
• Maintaining low injury rates despite increased production
• Addressing supplier nonconformances related to working hours and recruitment practices

Mitigation Strategies

• Developed contingency plans for operations in Europe and evaluated supply chain risks
• Updated supplier questionnaires to determine NXP's upstream Scope 3 emissions
• Implemented diverse hiring practices, including diverse candidate slates and employee referral program incentives
• Conducted global safety surveys and implemented corrective actions
• Actively engaged with suppliers to address nonconformances and develop corrective action plans

Supply Chain Management

Supplier Audits: 14 audits in 2022

Responsible Procurement

• NXP Supplier Code of Conduct
• Social responsibility audits
• Supplier training
• Corrective action plans

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events, droughts

Transition Risks

• Regulatory changes, market shifts towards renewable energy

Opportunities

• Development of energy-efficient products and solutions

Reporting Standards

Frameworks Used: GRI Standards, SASB, TCFD, UNGC

Certifications: ISO 14001, ISO 45001, ISO/IEC 27001

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 9 (Industry, Innovation, and Infrastructure)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)

NXP's initiatives contribute to these goals through energy efficiency, sustainable manufacturing practices, waste reduction, and climate action

Sustainable Products & Innovation

• Energy-efficient products, products with reduced environmental impact

Awards & Recognition

• AAA MSCI ESG Rating
• King Willem I Award For Sustainable Entrepreneurship
• KLM Royal Dutch Airlines Sustainability Award
• Numerous other awards and recognitions from various countries and regions

Environmental Metrics

ESG Focus Areas

• Climate-Change Mitigation and Emissions
• Employee Health and Safety
• Business Conduct
• Sustainable Products
• Energy Management
• Human Rights
• Corporate Governance
• Water Consumption and Efficiency

Environmental Achievements

• Reduced absolute Scope 1 and 2 emissions by 23% compared to 2022 and 24% since 2021 baseline
• Increased renewable electricity use to 39%, a 4 percentage point increase from 2022
• Recycled 51% of wastewater, a 2 percentage point increase from 2022
• Recycled 86% of waste, a 3 percentage point increase from 2022
• Published first Biodiversity Policy

Social Achievements

• 88% of managers completed unconscious bias training
• Increased percentage of women in R&D roles to 20%
• Maintained low injury rate of 0.10
• Improved global employee voluntary turnover to an all-time low of 6.5%
• Established the NXP Human Rights Working Group

Governance Achievements

• Julie Southern appointed Chair of NXP’s Board of Directors
• Published a standalone Anti-Bribery and Corruption Policy
• 100% of suppliers signed the Supplier Code of Conduct Statement
• ESG component added to Annual Incentive Plan (AIP)

Climate Goals & Targets

Environmental Challenges

• Achieving carbon neutrality by 2035 due to complexities of renewable and non-renewable energy use, fossil fuels, PFCs, and HTFs, and increased semiconductor production.
• Measuring Scope 3 emissions due to the complexity of the entire value chain and assumptions on product use.
• Maintaining compliance with evolving regulations and customer requirements for product responsibility and human rights.

Mitigation Strategies

• Developed a roadmap to carbon neutrality with mid-term goals (35% reduction in Scope 1 and 2 emissions by 2027, 50% renewable electricity by 2027).
• Developed a framework to quantify how products enable a more sustainable world.
• Reviewed and updated the NXP Human Rights Due Diligence System and established the Human Rights Working Group.
• Increased supplier audits and training, focusing on priority requirements and top nonconformances.

Supply Chain Management

Supplier Audits: 15 supplier audits and 2 labor agent audits in 2023

Responsible Procurement

• Supplier Code of Conduct, Auditable Standards on Social Responsibility, supplier risk assessments, audits, corrective action plans.

Climate-Related Risks & Opportunities

Physical Risks

• Water scarcity

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards, SASB, TCFD, UNGC

Certifications: ISO 14001, ISO 45001, ISO/IEC 27001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 3 (Good Health and Well-being)
• Goal 7 (Affordable and Clean Energy)
• Goal 9 (Industry, Innovation and Infrastructure)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)

NXP's initiatives contribute to these goals through various environmental, social, and governance programs.

Sustainable Products & Innovation

• Energy-efficient MC33775 Battery Cell Controller, FS26 System Basis Chip, UWB radar, AI/ML solutions for energy savings, NFC chips for product tracking.

Awards & Recognition

• NXP Taiwan won first place in the ESG Integrated Performance/Foreign Enterprise/Excellent Category at the 19th Annual ESG Award Ceremony.
• NXP Thailand was the first runner up for the "Outstanding in Corporate Governance" Award.
• Great Place to Work certification in China, India, Mexico, and the US.