|| Throughout the year, our Chairman and other representatives from our Board of Directors, Investor Relations, Corporate Sustainability, and other internal groups met to discuss ESG issues with our shareholders.
We conduct proactive outreach with our major active shareholders and as well as reactive discussions who may have specific ESG requests.
| Inquiries regarding carbon neutrality, science-based targets, the ability to adequately monitor Scope 3 emissions, and aligning ESG goals with compensation.
|| In 2022, the Board of Directors approved the alignment of our 2022 Annual Incentive Plan with the Sustainability scorecard.
Announced our goal to achieve carbon neutrality by 2035 and reduce our carbon footprint by 35% (Scope 1 and 2) by 2027 (baseline 2021).
We expect to commit to the Science Based Target Initiative (SBTi) in 2022.
We will engage with our key suppliers to reduce Scope 3 impacts and measure NXP's portion of our key suppliers' carbon footprint.
||As part of our ESG focused survey, selected global team members were surveyed regarding ESG focus areas that they found most important to address.
||Top results from the ESG focused survey included sustainable products, cybersecurity, human rights, climate change, and water conservation.
||NXP approved mid- and long-term goals addressed in the Environment chapter.
To address increased team member interest in our cybersecurity program, we included a section in this years' report.
|| Continued to conduct onsite and remote social responsibility audits, and collaborated with industry peers through the Responsible Business Alliance Validated Assessment Program (VAP).
Increased Tier 2 supplier social responsibility training.
| Top three supplier audit nonconformances: Freely Chosen Employment, Emergency Preparedness, and Working Hours.
|| Supplier Corrective Action Plans are 89% closed.
Increased supplier training in the top three nonconformances.
| Responsible Business Alliance (RBA)
|| Attended monthly and quarterly calls as a Board member and RBA Full Member.
|| Alignment with the industry on salient issues regarding labor and human rights.
|| RBA requires members to audit 25% of high-risk suppliers.
The updated RBA Code of Conduct (CoC) version 7.0 and Validated Assessment Program (VAP) standards were incorporated into the NXP Supplier CoC and Auditable Standards.
| Responsible Labor Initiative (RLI)
|| Attended monthly workgroup meetings and quarterly steering committee meetings (as a Board delegate).
|| Guidance on definition of fees, gap analysis on various guidance standards, labor-agent training, and mapping the labor-agent recruiting corridor.
|| Updated our Auditable Standards per the RLI's revised definition of fees.
Shared NXP practices at various forums organized by the RLI.
| Responsible Mineral Initiative (RMI)
|| Attended annual member meeting, ad hoc meetings, and various conference calls organized by the RMI.
|| Tools and resources to make sustainable mineral sourcing decisions.
|| Developed tools to cover new EU legislation and cobalt due diligence.
| Global Business Initiative (GBI)
|| Attended two virtual meetings, various ad hoc meetings, and conference calls organized by the GBI.
|| Multi-industry human-rights best practices for businesses.
|| Enhancing and strengthening human-rights due diligence across NXP value chain, in preparation for upcoming mandatory regulations.
| European Partnership for Responsible Minerals (EPRM)
|| Chaired Governance Board meetings, participated in bi-annual member meeting, conferences, and outreach meetings with governments and authorities.
|| Sharing of best due-diligence practices, greater understanding of actual conditions in mines and the mineral supply chain, and ideas for improving those conditions.
|| Created knowledge platform on supply-chain due-diligence regarding responsible mineral sourcing, and launched a Due Diligence Check tool.
Provided support to mine sites in Conflict-Affected and High-Risk Areas (CAHRAs) by financing "on the ground" projects.
| UN Global Compact (UNGC)
|| Participated in Annual Communication on Progress.
||Increased due diligence of environmental risks within the supply chain.
||Continued to increase our efforts in engaging with our supply chain to implement a sustainable environmental program.
| World Semiconductor Council (WSC)
|| Chaired the Responsible Sourcing and the Health and Safety workgroups, attended three WSC meetings, several workgroup meetings, and various expert-led webinars.
|| Best practices for responsible sourcing of minerals and Health & Safety practices.
|| Applying best practices to advance our Health and Safety programs. Annual collection of Health and Safety data from member companies.
Completed the biennial WSC member survey on responsible minerals sourcing and published results in the WSC joint statement.
| European Semiconductor Industry Association (ESIA)
|| Chaired ESIA Responsible Sourcing workgroup, actively participated in several Environment, Safety & Health (ESH) workgroups and lead the Sustainable Corporate Governance task force.
|| Status of various EU legislation and initiatives, including the EU Conflict Minerals regulation, work on PFCs, PFOS, chemical management, Health & Safety, energy savings, and natural resource efficiency.
|| Participated in several consultations from the EU Commission on new regulations relating to sustainability.
Completed business-impact assessments on new chemical legislation, including phase-out scenarios.
Maintained excellence in Health and Safety performance record and met voluntary targets for emission reduction.
||Conducted bi-annual due-diligence exercise relating to migrant workers and broker supply chain of selected suppliers.
|| Increased transparency to the migrant-worker supply chain.
|| Utilized the Cumulus database mapping capabilities to further understand the complexities, and address potential risks of multi-tiered labor supply chain recruitment.
|| Conducted third-party audits on social responsibility, supported by consultation and collaboration, to review NXP’s Social Responsibility program.
|| Continuous-improvement opportunities for supply chain compliance and capacity building.
|| Strengthening supply-chain compliance and supplier capacity building, and advancing NXP’s Auditable Standards for Social Responsibility.
Enhanced remote audit protocols during the pandemic.