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As a company focused on innovation, we are known for our ability to solve problems and address societal challenges, and we are proud of the progress we've made since our founding, in 2006, regarding our environmental, social and governance (ESG) performance.
Our ESG mission is to enable a better, safer, more secure and more 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.
| Goals | Progress in 2022 | |
|---|---|---|
| Innovation | Design and manufacture technology that positively impacts the planet and society | We work to reduce the environmental impact of our facilities and our supply chain, and we consider ways to decrease the use of raw materials in our designs. |
| Develop higher-performing, more energy-efficient products | We strive to increase the energy efficiency of our products. With each new generation, we aim for higher performance in a smaller footprint, with the goal of saving on raw materials. | |
| Environment | Carbon neutral by 2035 | We strive to increase the energy efficiency of our products. With each new generation, we aim for higher performance in a smaller footprint, with the goal of saving on raw materials. |
| Reduce carbon emissions by 35% in 2027 (2021 baseline) | In 2022, we decreased our absolute Scope 1 and 2 emissions by 1% compared to our baseline year of 2021. | |
| 50% renewable electricity by 2027 | In 2022, we used 35% renewable electricity, an increase of 4 percentage points compared to 2021, and an increase of 21 percentage points compared to 2012. | |
| 60% of wastewater recycled by 2027 | In 2022, we recycled 48% of wastewater, an increase of 1 percentage point compared to 2021, and an increase of 16 percentage points compared to 2012. | |
| 90% of waste recycled by 2027 | In 2022, we recycled 83% of waste, an increase of 7 percentage points compared to 2021, and an increase of 10 percentage points compared to 2012. | |
| Social | 25% women in R&D by 2025 | In 2022, there were 19% women in R&D, an increase of 2 percentage points compared to 2021. |
| 50% underrepresented minorities in our US workforce | In 2022, there were 51% underrepresented minorities in our US workforce, an increase of 2 percentage points compared to 2021. | |
| Zero tolerance of forced labor and human-rights abuses | In 2022, we took the following steps to ensure zero tolerance of forced labor and human-rights abuses:
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| Zero workplace injuries | We maintained a low Total Case Incident Rate (TCIR) of 0.10 in 2022, and remain well below semiconductor-industry averages. | |
| Governance | Work with our supply-chain partners to reduce their environmental footprint | In 2022, we surveyed our suppliers, to gauge their environmental footprints, and used the results to derive action plans. |
| Integrate ESG into our business so we can foster ownership and accountability | In 2022, we established an ESG Program that addresses all the relevant areas of our business and also identifies roles and responsibilities. |
“Our collective and individual expertise differentiates us in the marketplace, and enables us to create innovative solutions to advance a more sustainable world.”
Kurt Sievers, President and CEO
We know that, as a large, multinational company, our operations are stronger when we leverage workforce diversity. We are also committed to reducing the environmental impact of our operations while being good stewards of our planet and doing our part to create a more sustainable world.
In 2022, we added a sustainability component to our short-term Annual Incentive Plan (AIP) to reinforce our corporate commitments is these areas. Our Human Resources and Compensation Committee (HRCC) approved the introduction of a sustainability scorecard. The scorecard contains multiple metrics and targets that support measurable year-on-year progress toward our long-term environmental and people-related aspirations. It is important to us that all team members participate in this progress. Therefore, the scorecard is applicable to the AIP for all team members and the target weighting of the sustainability component is set at 20% of our AIP.
The following table lists our 2022 Sustainability Scorecard Goals, explains why we chose them, and describes the progress we made toward meeting those goals over the past twelve months.
| 2022 Sustainability Scorecard Goal | Why was it chosen? | Achievement | 2022 Performance |
|---|---|---|---|
| Roadmap for Carbon Neutrality Publish carbon neutrality commitment, submit Science Based Targets initiative (SBTi) commitment letter and develop a comprehensive roadmap |
After engaging with external and internal stakeholders, climate change, in particular carbon neutrality, emerged as an important environmental topic to be addressed in a transparent and measurable way. We also received feedback from shareholders that committing to the science-based targets is important. A roadmap with the interim steps to achieve the long-term goals are a fundamental part of that SBTi commitment. | We sent a formal commitment letter to SBTi, stating a goal of carbon neutrality by 2035 using science- based targets. We developed a roadmap for Scope 1 and 2 emissions with specific actions to achieve the given goal recognizing that key steps and investments must be taken along the journey. | Achieved |
| Renewable Electricity Attain renewable electricity usage ≥ 29% |
Because we have global manufacturing operations, including wafer fabrication and assembly and test, we recognize the importance of using renewable electricity to power our facilities around the world. It is also an important component of our roadmap toward carbon neutrality. | As of year-end, we have achieved 35% usage of renewable electricity. | Achieved |
| Minimize Impact on Global Water Supplies For the countries and regions where we have manufacturing, assembly, and/ or test facilities, update water- recycling goals |
We acknowledge water as an important part of our production processes and understand that, as a good steward, we should look to limit our use or reuse. Since it's not currently technically feasible to drastically reduce the amount of water we use in our manufacturing processes, we focus instead on increasing our water recycling rate so we use less incoming water. | We established a detailed roadmap of actions and investments to improve water management through future investments and process improvements. | Achieved |
| Reduce Carbon Emissions Reduce carbon emissions to ≤1250 kTons CO2e by end of 2022 |
Our roadmap to carbon neutrality includes annual emission-reduction targets to put NXP on a clearly-defined path to reduce emissions that are in line with the Paris Agreement goals. | As of year-end, we reduced our absolute carbon emissions to 1,099 kTons CO2e.1 | Achieved |
| Worker Safety Conduct a global safety survey and ensure team members are properly trained on safety |
A safe and healthy workplace protects workers from injury and illness. It can raise employee morale, increase productivity, and improve quality, while also lowering injury/illness costs, reducing absenteeism, and minimizing turnover. While safety is important for all our team members, we especially focus on those who work in our various factories around the world. We want to maintain our historically low injury rate and remain among the best in the industry for this metric. | We conducted safety surveys to identify areas of safety risk. As a result, we developed and conducted safety training for 99% of relevant team members and implemented corrective actions where needed. | Achieved |
| Cultural Transformation Demonstrate that we have made innovation and growth essential components of our corporate culture |
Our diverse and talented team members drive the innovation that sets our company apart and fuels our success in the market. We aim to create a clear purpose, connecting to the underlying values that define the way we work and the everyday behaviors that demonstrate those values. | The purpose and values were defined through engaged leadership ideation. The values were further defined and connected to demonstrable behaviors built on a foundation of trust and respect. These values are now embedded in our people systems and programs from enabling performance to NXP manager training. | Achieved |
1 This metric includes our Scope 1 and 2 emissions using our the Intergovernmental Panel on Climate Change (IPCC) 2006 methodology for Perfluorinated Compounds (PFC) emissions.
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.
We work diligently to ensure that we approach our business from an ESG point of view while delivering long-term value for our stakeholders. Our Sustainability Policy influences the way we manage our company and the way we interact with society at large.
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 ESG 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. |
| Environment | 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. |
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. Learn more about our board committees.
We are here to answer any inquiry regarding our corporate sustainability efforts, including EHS and environmental product compliance.
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