Key environmental principles are embedded in our Corporate Sustainability Policy as signed by the CEO. The Sustainability policy is developed and deployed by the Sustainability Management team.

The Environment, Health & Safety (EHS) Executive Board sets and approves targets each year and reviews metrics within our factories. Within the Sustainability Management team, the Corporate EH&S Director and EHS managers have several responsibilities. They establish environmental risk mitigation strategies. Develop and deploy standards, programs, procedures, share resources and appoint people to programs and projects worldwide.

NXP complies with applicable legislation and regulation. Where laws and regulations do not meet our standards, NXP adopts its own vigorous standards to protect the environment. NXP drives continual improvement in its performance by designing, implementing, and maintaining a management system and the programs to achieve its objectives.

Our environmental program focuses on environmental issues including:

• Minimizing greenhouse gases
• Reducing our energy and water consumption
• Manage chemicals of concern, minimize hazardous waste and reducing pollutants

NXP’s 2020 environmental goals are based on a normalized 2010 baseline. By 2020, NXP wants to reduce electricity usage by 30%. Reduce water usage by 30%. Reduce our carbon footprint by 30%. Recycle 90% of all waste generated and phase out chemicals of concern.

Risk Assessments

All NXP manufacturing facilities conduct annual risk assessments for Environment covering the ISO standard. The risk assessments allow the sites to evaluate potential risks or environmental hazards, weigh them against the likeliness of occurrence, and proactively mitigate those risks and hazards through programs, procedures, and engineering controls.

Self-Assessments

Self-assessments are done annually via a checklist that each site completes, evaluating the Management System elements of the ISO standard. Each site follows up with their findings of their corrective actions. As a member of the Responsible Business Alliance (RBA) each NXP factory completes an RBA Self-Assessment questionnaire that addresses environment as well as management systems.

Audits

NXP Corporate EHS conducts internal audits at each manufacturing site. This is completed along with a third-party consultant, if necessary, and a senior EHS manager from a different site. These internal audits are conducted every 2 years and audit findings are categorized according to severity. The corrective actions for these findings are formally reported and tracked via an audit management system.

Third-party audits are conducted by our registrar (LRQA). Each year, on average, they evaluate two sites in addition to Corporate EHS. LRQA determines which sites are audited each year. A sampling of compliance and management systems are audited and a formal report is issued and corrective actions are tracked until we demonstrate to LRQA that they are effectively closed.

Each NXP manufacturing facility has a Social Responsibility audit supported by a NXP-approved third-party audit firm. NXP facilities are required to demonstrate success in the deployment of environment as part of the social responsibility audit. All facilities should not have any core violation findings as specified by the NXP standards on Social Responsibility. The Social Responsibility audits include many different components, such as document reviews, employee, and management interviews and facility inspections.

To ensure that everyone at our sites has the right skills and disciplines to minimize environmental risks, employee training is conducted worldwide each year. A range of educational programs provide on-the-job training. In addition, specialized trainings in environmental matters, quality controls, and chemical management are conducted.

In 2018, EHS continued working on implementing across all sites, a process for workers of all levels to participate and consult in EHS incident investigations and management systems planning.

We use a Sustainability Management System to gauge our performance. Our reporting manuals contain reporting instructions for these systems, including definitions, procedures, and calculation methods. Environmental data is reported and validated by the Sustainability Office monthly. Data is reported on every manufacturing facility that a) we own, rent, or lease and manage, b) has 50 or more people working in production, and c) is consolidated for our financial reporting.

The Sustainability Office validates data and information entered in the Sustainability Management System according to the frequency given in the reporting standards. Validation consists of the following steps:

• Check for completeness of data (locations and parameters)
• Compare data from the reporting period with data from previous periods
• Determine whether changes in data are significant
• Seek explanations for significant data movements
• Investigate notable events

The Sustainability Office performs monthly formal reviews with all wafer Labs and assembly and test sites. During these reviews, we examine the results from our Sustainability Management System, discuss the progress of improvement projects, and set expectations for the next period.

To ensure reliable, accurate, and complete reporting, the Sustainability Office also conducts internal data audits of the manufacturing sites and the larger office and R&D sites. The audits check for proper reporting procedures and data trails.