What are the NXP Goals?

Our ESG mission is to enable a better, safer, more secure and sustainable world through innovation. That mission has given rise to a series of aspirational goals that inform our efforts and enable us to gauge our performance and celebrate our accomplishments.

Design and manufacture technology that positively impacts the planet and society Develop higher performing, more energy-efficient products

Carbon neutrality by 2035 Carbon reduction goals are aligned to our SBTi commitment Reduce carbon emissions by 35% in 2027 (2021 baseline) Optimize natural resources by 2027 50% renewable energy 60% wastewater recycled 90% waste recycled

25% women in R&D by 2025 50% under-represented minorities in our U.S. workforce Zero tolerance of forced labor and human rights abuses Zero workplace injuries

Partner with our supply chain to reduce their environmental footprint Integrate ESG into our business to foster ownership and accountability

ESG Approach

We endeavor to provide a safe and healthy working environment, to use resources effectively and efficiently and to be accountable and transparent regarding the impacts of our activities. We also strive to exceed existing standards and stakeholder expectations and actively contribute to industry best practices.

Mission
Focus Areas
Sustainable Development Goals
Governance

ESG Mission

We have a long-standing commitment to operational sustainability, underscored by a history of continuous performance improvements. Below, we outline our ESG mission and the key components of our longer-term sustainability strategy.

	Strategy	Guiding Principles
Innovation	Innovate advancements that enable a better, safer, more secure and more sustainable world.	Push boundaries and explore new approaches to develop innovative and sustainable products and solutions.
Environmental	Optimize our use of resources and the beneficial social impacts associated with our operations.	Pursue continual improvements to protect our planet.
Social	Leverage our global and increasingly diverse team to actively drive our sustainability mission.	Respect human rights and promote an ethical, safe and healthy work environment. Foster an environment of trust and respect, where team members collaborate to drive innovation and are able to contribute to their full potential.
Governance	Collaborate with our stakeholders on global sustainability initiatives. Ensure accountability and build trust through transparency in our business practices and operations	Proactively assess risk and build resilience through robust governance systems, including appropriate goals and processes.

ESG Focus Areas

In 2023, NXP updated our assessment to determine whether we are still prioritizing the most material sustainability topics. Our assessment process included inputs from external and internal stakeholders as well as our executive management team. The assessment also includes industry-relevant sustainability standards, ESG rating reports, peer disclosures, research papers and other relevant documents related to impacts, risks and opportunities of the semiconductor industry.

The outcomes of the update didn't result in substantial changes to NXP's ESG focus areas. The following table includes the list of our priority topics.

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

Note: The terms "materiality" and "material" in this Report and other ESG and sustainability-focused disclosures differ from the same terms used in disclosures for securities or other laws.

Sustainable Development Goals

Aligning with the applicable UN Sustainable Development Goals (SDGs) helps NXP create a foundation for shaping worldwide economic progress in harmony with social justice. NXP reports on the measures implemented for relevant goals and where our business model can contribute to realizing the goals

Good Health and Well-Being

Ensure healthy lives and promote well-being for all at all ages.

Clean Water and Sanitation

Ensure availability and sustainable management of water and sanitation for all.

Affordable and Clean Energy

Ensure access to affordable, reliable, sustainable and modern energy for all.

Decent Work and Economic Growth

Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all.

Industry, Innovation and Infrastructure

Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation.

Sustainable Cities and Communities

Make cities and human settlements inclusive, safe, resilient and sustainable.

Responsible Consumption and Production

Ensure sustainable consumption and production patterns.

Climate Action

Take urgent action to combat climate change and its impacts.

For more information on our alignment to the SDGs, please see our 2023 Corporate Sustainability Report.

ESG Governance

Our sustainability strategy is aligned with and incorporated into the company’s long-term business strategy. NXP's Board of Directors has ultimate oversight responsibility for ESG matters. The full Board focuses on significant ESG matters, with Board Committees undertaking oversight of ESG issues relevant to their responsibilities and then integrating committee work on these issues in their reports to the full Board. NXP has had third-party consultants with ESG and sustainability expertise present to the Board of Directors to help the Board make business decisions that best align with sustainable development.

Board Committees

ESG Program oversight is delegated to the Nominating, Governance and Sustainability Committee, which oversees integration of abroad set of ESG considerations into business functions. Specific aspects of ESG oversight are delegated to the Audit and Human Resources Compensation Committees for ESG matters within their core areas of expertise.

Nominating, Governance and Sustainability Committee

Oversight of policies and practices relating to significant ESG issues

Oversee policies and practices related to climate and sustainability initiatives
Review sustainability initiatives and goals including progress toward achieving those goals
Review and approve the annual Corporate Sustainability Report as well as other ESG-related reports requiring Board-level oversight
Review stakeholder feedback related to sustainability on an annual basis

Audit Committee

Oversight of financial disclosure processes and controls, and internal and external assurance over ESG reporting

Oversee disclosure controls and procedures over ESG disclosures and any assurance being provided by independent auditors
Ensure NXP prepares appropriately for legislative and regulatory developments affecting ESG reporting in financial report

Human Resources and Compensation Committee

Oversight of human-capital policies and programs, DE&I and compensation, including the alignment of ESG goals to incentive-pay programs

Oversee alignment of sustainability strategy with compensation programs
Select from goals identified as strategic ESG goals by the Nominating, Governance and Sustainability Committee
Incorporate ESG goals into compensation programs and design such programs, if relevant

The Nominating, Governance and Sustainability Committee receives quarterly updates from representatives of the ESG ManagementBoard and, in turn, reports on these efforts in plenary meetings of Management Board of Directors.

Contact Us

We are here to answer any inquiry regarding our corporate sustainability efforts, including EHS and environmental product compliance.

SUSTAINABILITY CONTACTS