Engagement Process

External Stakeholders

Stakeholder group Engagement style Purpose of engagement How outcomes are accounted for
Civil Society Organizations / Non-Governmental Organizations (CSOs/NGOs) Dialogue, multi-stakeholder projects and conferences. To align business and civil society's expectations on sustainability due diligence and collaborate to support affected stakeholders. Update our policies and actions to include best practices that serve affected stakeholders.
Customers Conferences, customer product launches, trade shows and dedicated sustainability- or business-review meetings. Customer-satisfaction survey and review of customer ESG documentation. Understand and align with customer expectations. Collaborate to create more sustainable products. Comply with customer requirements and reduce the need for customer audits through alignment.
Governments / Public Sector Multi-stakeholder projects, meetings and conferences. Industry-association meetings. Provide business/industry understanding on how relevant regulations will impact NXP and our stakeholders, so we can respond appropriately. Update reporting and processes to comply with regulatory requirements.
Industry Associations Workgroup and meeting participation or leadership. Share best practices among peers and stay aligned with industry expectations. Update NXP's operations and plans with relevant industry codes and standards.
Shareholders / Investors Shareholder meetings, investor calls and conferences. Align with investor expectations and priorities to add value to their initiatives and NXP activities. Compile and share feedback with relevant teams when improvements are needed.
Suppliers Supplier due-diligence audits and surveys. Supplier review meetings. Increase sustainability impact, including greenhouse-gas (GHG) emissions and performance, by encouraging cooperation throughout the supply chain. Conduct supplier due-diligence audits, complete corrective action closures and coordinate initiatives. Scope 3 reduction activities.

Internal Stakeholders

Stakeholder group Engagement style Purpose of engagement How outcomes are accounted for
NXP Team Members Engage with team members through a variety of tools. Quarterly Pulse meetings, surveys, Employee Resources Groups (ERGs), town hall-style meetings, Innovation Summit and Growth Week. To highlight and celebrate innovation within NXP. Gain insights into the priorities, concerns and suggestions of our NXP team members to help foster a culture of success and innovation, and to be recognized as a good employer and responsible social citizen. Compile and summarize feedback from team-members for review by leadership. Leadership then chooses adjustments and improvements based on identified needs and priorities.
NXP Sustainability Subject Matter Experts (SMEs) Regular meetings. Working groups, surveys and projects. Utilize the expertise of sustainability practitioners within NXP to improve our overall ESG Program. Incorporate suggestions from sustainability SMEs as feasible and escalate to ESG Management Board as needed.

2023 Engagement

The table below gives examples of how we engaged with internal and external stakeholders in 2023. Frequency and type of engagement varies by stakeholder group and is tailored to stakeholder requirements.

Stakeholder Engagement Feedback Outcomes and Follow-Up
Customers Participated in conferences, customer product launches and trade shows, as well as regular business-review meetings and sustainability-review meetings. Conducted a customer-satisfaction survey, using the Net Promoter Score method, and performed a separate customer survey focused on ESG requirements. Hosted education and training events. Responded to questions and requests relating to compliance, legal and regulatory issues, as well as general sustainability inquiries. Alignment with customer priorities for emerging regulatory requirements. Need for more detailed sustainability reporting with emphasis on climate change as well as life-cycle analysis and carbon footprint of products. Shared our mid- and long-term ESG/Sustainability goals with our customers and provided updates on our sustainability/ESG roadmaps. Signed sustainability agreements and responded to sustainability surveys. Continued to work on carbon-neutrality projects, including the increased use of renewable electricity. Continued working on Scope 3 reporting and setting up systems to report carbon foot-printing of products.
European Partnership for Responsible Minerals (EPRM) Participated in member meetings, conferences and outreach meetings with governments and authorities. Provided input for the Governance Board. Sharing of best due-diligence practices, greater understanding of actual conditions in mines and the mineral supply chain, along with ideas for improving those conditions. Provided support to mine sites in Conflict-Affected and High-Risk Areas (CAHRAs) by financing "on the ground" projects. Provided information for case studies.
European Semiconductor Industry Association (ESIA) Chaired ESIA Responsible Sourcing workgroup, actively participated in several Environment, Safety and Health workgroups, the EU Taxonomy workgroup and the EU Human-Rights Due-Diligence workgroup. Shared insights on various EU initiatives and proposed regulations. Participated in several consultations from the EU Commission on new regulations concerning sustainability and human rights. Completed business-impact assessments for proposed regulations.
Global Business Initiative (GBI) Attended two peer-learning meetings for members, various ad hoc meetings and conference calls organized by the GBI. Promoted NXP's work in community engagement by visiting vocational schools in rural Indonesia to raise awareness on the rights of migrant workers. Multi-industry human-rights best practices for businesses. Enhanced and strengthened human-rights due diligence across NXP value chain, in preparation for upcoming mandatory regulations. Continued to learn and share successes and challenges in implementing the UN Guiding Principles, in a multi-sectoral setting.
Organisation for Economic Co-operation and Development (OECD) Joined the Multi-Stakeholder Steering Group (MSG) for the Responsible Minerals Implementation Programme. Challenges related to responsible mineral sourcing. Provided guidance and support to operational aspects of the OECD’s Responsible Minerals Implementation Program.
Responsible Business Alliance (RBA) Attended monthly and quarterly calls as a Board member and an RBA Full Member. Alignment with the industry and member companies on salient issues regarding labor and human rights. Worked with the RBA to develop a tool that will help us map our supply chain beyond Tier 1. Provided input to a gap analysis between the RBA's due-diligence schemes and proposed human-rights due-diligence regulation in the EU and the US. Participated in strategy sessions to define the RBA's approach to climate change and environmental issues in the supply chain. Participated in expert panel discussions on Ethical Recruitment and ESG Reporting at the annual RBA Responsible Business Conference.
Responsible Labor Initiative (RLI) Attended monthly workgroup meetings and, as a Board delegate, attended quarterly Steering Committee meetings. Supported the RLI in external stakeholder engagement and meetings and participated in expert panels at the annual RBA Responsible Business Conference. 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's practices at various forums organized by the RLI. Participated in external stakeholder engagement process organized by the RLI.
Responsible Mineral Initiative (RMI) Attended annual member meeting, monthly plenary meetings, smelter engagement team meetings and various conference calls organized by the RMI. Tools and resources to make sustainable decisions about mineral sourcing. Discussed best practices within the industry. Upgraded tools for new Conflict Minerals Reporting Template (CMRT) and updated Extended Minerals Reporting Template (EMRT). Verified best practices.
SEMI Semiconductor Climate Consortium (SCC) Continued our ongoing engagement as a founding member of the Semiconductor Climate Consortium. Collaboration on best practices and innovation to accelerate the semiconductor industry’s efforts to reduce the emission of greenhouse gases. Leveraged expertise and resources in various portions of the supply chain to continue to expand NXP’s capability to positively impact our carbon footprint. Participated in all five working groups, with particular focus on Scope 1, Scope 2 and Baselining and Ambition Setting. Supported adoption and publication of industry-wide ambition statements. Future focus on leveraging joint learning and accelerating the progress toward carbon neutrality.
Shareholders / Investors Our Chairman and other members of our Board of Directors, individuals from our Management Team, including our Chief Sustainability Officer, and representatives from Investor Relations, Corporate Sustainability and other internal groups met to discuss ESG issues with our shareholders. Conducted proactive outreach with our major active shareholders and had interactive discussions with those who had specific ESG requests. Inquiries regarding our carbon-neutrality programs, our commitment to the Science Based Targets initiative (SBTi), the ability to adequately monitor Scope 3 emissions, focus on emerging regulatory requirements such as the EU Taxonomy and Corporate Sustainability Reporting Directive (CSRD), increased reporting transparency on gender pay differential, increased disclosure on Diversity, Equality and Inclusion (DE&I) metrics and aligning ESG goals with compensation. The Board of Directors reconfirmed our mid- and longer-term ESG goals and approved our 2023 Annual Incentive Plan (AIP) with the ESG scorecard. Continued to align with SBTi by assessing our Scope 3 emissions. Updated supplier questionnaires to determine NXP's upstream Scope 3 emissions and began to prepare for emerging regulatory requirements. We also disclose additional information on DE&I on our website.
Suppliers Conducted supply-chain social-responsibility audits (all of which were onsite) and collaborated with industry peers through the Responsible Business Alliance Validated Assessment Program (VAP). Top three supplier audit nonconformances: Freely Chosen Employment, Emergency Preparedness and Working Hours. Continued to close Supplier Corrective Action Plans. Increased supplier training, with a focus on NXP's priority requirements and the top three nonconformances.
Team Members Our annual Winning Culture Survey captures the sentiment of team-member engagement as it evolves. In 2023, NXP surveyed all NXP team members and additional categories and statements were added in the areas of innovation, growth, ethics and sustainability aligning with enterprise focus areas. Ninety percent of NXP team members provided feedback in the 2023 Winning Culture Survey. Results were extremely positive, with the percentage of favorability for all categories above the 75th percentile technology benchmark. The largest category increases were in engagement and growth, with 70% of team members being highly engaged. Opportunity areas emerged around risk-taking, process effectiveness and team-member feelings of belonging. Several initiatives were launched in 2023 to support feedback received from NXP team members, including a refresh of our onboarding process, increasing our ERG footprint by establishing new chapters, conducting Growth Week (described on our Team Member Engagement webpage) and holding an Innovation Summit. In early 2024, we plan to identify areas where risk-taking and process effectiveness can be improved.
UN Global Compact (UNGC) Completed the new Communication on Process questionnaire on corporate action and performance related to the Ten Principles of the UN Global Compact and the Sustainable Development Goals. Increased due diligence of environmental risks within the supply chain. Continued to increase our efforts to engage with our supply chain to implement a sustainable environmental program. Created a link between the UN's Sustainable Development Goals (SDGs) and NXP's ESG Program.
Verité Conducted third-party audits on social responsibility, supported by consultation and collaboration, to review NXP’s Social Responsibility program. Supported capacity-building in NXP's Social Responsibility programs at NXP sites and in the supply chain. Conducted due-diligence exercises relating to the recruitment of migrant workers and the supply chain for migrant labor. Supported engagement with vocational schools and helped conduct awareness training for students in schools that are a recruitment source for migrant workers. Continuous-improvement opportunities for supply-chain compliance and capacity-building. Increased transparency to the migrant-worker supply chain. Continued to strengthen supply-chain compliance and supplier capacity-building while also advancing NXP’s Auditable Standards for Social Responsibility. Used the Cumulus database's mapping capabilities to better understand the complexities of multi-tiered labor recruitment in the supply chain and how to reduce the risks associated with this type of recruitment. Together with Verité, NXP provided training to the graduating class of vocational schools in Indonesian villages. The training focused on their rights as potential migrant workers. The school faculties welcomed the engagement activity.
World Semiconductor Council (WSC) Chaired the Responsible Sourcing and the Health and Safety workgroups, and attended WSC meetings, several workgroup meetings and various expert calls. Best practices for responsible sourcing of minerals and Health and Safety practices. Need for a follow-up of the voluntary perfluorinated compound (PFC) emission-reduction program. Discussed the industry-wide challenges of polyfluoroalkyl substances (PFAS) with governments and authorities. Continued our application of best practices to advance our Health and Safety programs. Kept track of legal developments, including PFAS, and aligned with other industry initiatives. Published an update in the WSC joint statement.