www.nxp.com
2022
MODERN 
SLAVERY REPORT
COMBATING FORCED LABOR AND ENSURING 
TRANSPARENT SUPPLY CHAINS



KURT SIEVERS
President and CEO,  
NXP Semiconductors
At NXP, our values are built on a foundation of trust and respect, 
and the belief that everyone is entitled to fairness, dignity, and 
the basic freedoms set forth by the United Nations Universal 
Declaration of Human Rights. 
We employ more than 34,500 people worldwide and partner 
with more than 10,000 suppliers globally. We recognize our 
responsibility to engage respectfully with all our stakeholders, 
and to make our commitment to labor and human rights an 
integral part of our operations and our culture. 
This annual Modern Slavery Report states our expectations for 
how people should be treated, defines our goals for ongoing 
improvement in our supply chain and external engagements, 
and shares our progress toward those goals.
In 2022, we introduced our Human Rights Policy, which guides 
our engagements with internal and external stakeholders, in 
conjunction with NXP’s longstanding Code of Conduct. We also 
updated the NXP Human Rights Management System to identify 
potentially adverse human-rights impacts, and added prevention 
and mitigation measures. We continue to participate in peer-
learning forums, such as those provided by the Global Business 
Initiative on Human Rights, and we remain a full member of the 
Responsible Business Alliance.
A MESSAGE FROM KURT SIEVERS, PRESIDENT AND CEO
2022 HIGHLIGHTS
INTRODUCTION
LABOR AND HUMAN-
RIGHTS COMMITMENT
HUMAN-RIGHTS  
DUE DILIGENCE
LOOKING FORWARD
CONCLUSION
ACRONYMS AND 
ABBREVIATIONS
2

We are honored to have been recognized for our focus on labor and human-rights issues. In 2022, we were ranked #10 on 
KnowTheChain’s 2022 Information and Communications Technology Benchmark, #25 on the World Benchmarking Alliance’s 
2022 Corporate Human Rights Benchmark, and we achieved an MSCI ESG rating of AAA. 
We are also proud to have been included in several events where we had the opportunity to discuss best practices and share 
our experiences of working within a multi-tiered supply chain. For example, 2022 was the fifth consecutive year that the UN 
Working Group on Business and Human Rights invited us to be a featured panelist, this time at the 2022 UN Asia-Pacific Forum 
on Business and Human Rights, where we spoke about our work in the supply chain and our efforts to help foreign migrant 
workers, who are some of the most vulnerable to human-rights abuses. 
As we continue our work to combat forced labor and human trafficking across a complex, global supply chain, I’d like to 
acknowledge our team members, partners, and stakeholders for their contributions. Only through our collective efforts can we 
hope to ensure and preserve the universal human rights to which everyone is entitled.
Kurt Sievers 
President and CEO, NXP Semiconductors 
June 2023
Other notable achievements of 2022, also described in more detail in this Report, include:
A MESSAGE FROM KURT SIEVERS, PRESIDENT AND CEO
99%  
of our suppliers signed the 
NXP Supplier Code of Conduct 
Conformity Statement
2022 ACHIEVEMENTS
We doubled  
the number of supply-chain 
due-diligence audits compared 
to 2021
We achieved an 88%  
closure rate for supplier 
corrective action plans and 
continued to work on the closure 
of nonconformances from 
previous years
3 
2022 HIGHLIGHTS
INTRODUCTION
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DUE DILIGENCE
LOOKING FORWARD
CONCLUSION
ACRONYMS AND 
ABBREVIATIONS

4 
TABLE OF CONTENTS
2022 HIGHLIGHTS..........................................................................5 
INTRODUCTION.............................................................................8
   	
Our Business...........................................................................10  
	
Our Operations.......................................................................12 
	
Our Team Members................................................................13 
	
Our Supply Chain...................................................................18 
	
Our Goals...............................................................................19
LABOR AND HUMAN-RIGHTS COMMITMENT.........................20 
HUMAN-RIGHTS DUE DILIGENCE..............................................24
	
Identify and Assess.................................................................31 
	
Integrate and Act....................................................................39 
	
Track........................................................................................57 
	
Communicate.........................................................................65
LOOKING FORWARD..................................................................70
CONCLUSION...............................................................................73 
ACRONYMS AND ABBREVIATIONS...........................................75 
4 
ENGAGE • PROTECT • RESPECT
4 
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ACRONYMS AND 
ABBREVIATIONS

2022 HIGHLIGHTS

Ranked #10  
on KnowTheChain's 
2022 Information and 
Communications Technology 
Benchmark 
Ranked #25  
on World Benchmarking 
Alliance's 2022 Corporate 
Human Rights Benchmark 
AAA  
MSCI ESG Rating
Added a 
Sustainability 
Component to our  
Annual Incentive Plan  
for All Employees
2022 AWARDS, RECOGNITIONS, AND ACCOMPLISHMENTS
2022 HIGHLIGHTS
In 2022, the re-opening of international borders and the willingness of our supply-chain partners 
to welcome NXP into their facilities helped us reinvigorate our supply-chain due-diligence efforts 
and redouble our work in addressing labor and human-rights issues. We are honored to have 
been recognized for our commitment to these issues, and are proud to have been included in 
several events that let us discuss best practices and share our experiences of working within a 
multi-tiered supply chain.
In particular, for the fifth consecutive year, the UN Working Group on Business and Human Rights 
invited NXP to be a featured panelist in a session about lessons learned from the COVID-19 
pandemic. As part of the 2022 UN Asia-Pacific Forum on Business and Human Rights, we 
described our work in the supply chain and our efforts to help foreign migrant workers, who 
are some of the most vulnerable to human-rights abuses. We discussed seeking remediation 
as a result of unfair treatment, and shared the ongoing challenges, even as the restrictions and 
impacts of the COVID-19 pandemic continue to ease, of unethical hiring practices associated 
with foreign migrant workers. 
2022 also saw the publication of our Human Rights Policy, a document that was approved by the 
NXP Board of Directors and reflects our engagement with external and internal stakeholders.
2022 SPEAKING ENGAGEMENTS
UN Asia-Pacific Forum on Business and Human Rights
Annual Member Peer Meeting of the Global Business Initiative (GBI) on Human Rights
ENGAGEMENT
SESSION TOPIC
1.	 UN Private Business Session and Workshop on Implementing the  
UN Guiding Principles       
2.	 Panel Session on Access to Justice and Remediation
Spotlight Session on Remedy in Focus: Cases and Challenges (GBI Member Meeting in 
October), and Embedding Human Rights Due Diligence Across Your Organization (GBI 
Meeting in May)




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ACRONYMS AND 
ABBREVIATIONS

2022 HUMAN-RIGHTS PERFORMANCE
SUPPLY-CHAIN COMPLIANCE GOALS
2022 SUPPLY-CHAIN COMPLIANCE PERFORMANCE
14 
Supply-Chain Due-Diligence 
Audits in 2022 
100%  
of Key Suppliers Sign Supplier 
Code of Conduct Conformity 
Statement
99%  
of Suppliers Signed the NXP 
Supplier Code of Conduct 
Conformity Statement
Shared Practical Approaches 
to Labor and Human-Rights 
Challenges 
85%  
Closure Rate for Corrective 
Action Plans
88%  
Closure Rate on Corrective 
Action Plans for Supplier 
Audits Past 90-Day Maturity
HUMAN-RIGHTS DUE DILIGENCE
EXTERNAL ENGAGEMENT
DUE-DILIGENCE RESULTS
LABOR AND HUMAN-RIGHTS 
COMMITMENTS
Found Instances of 
Working-Hour Challenges, 
Recruitment-Related Fees 
Paid by Workers, and 
Insufficient Rest Days
100%  
Certified Mineral Smelters
100%  
Certified Mineral Smelters1
Published NXP's First Human 
Rights Policy
Supply-Chain Due Diligence 
and Collaboration
Follow-Up Due-Diligence 
Surveys with External 
Manufacturing Partners and 
Wafer Suppliers on the Use 
of Polycrystalline Silicon 
Originating from Regions 
Deemed High Risk for Forced 
Labor
2022 HIGHLIGHTS
1 This data point is reported annually, but primarily reflects 2022 calendar-year data to align with our 2023 Conflict Minerals Specialized 
Disclosure Form (Form SD) and Conflict Minerals Reporting Template (CMRT) filing.
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ACRONYMS AND 
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INTRODUCTION

INTRODUCTION
Our Corporate Social Responsibility and Human Rights 
Program is designed to protect and respect human rights and 
reflects the highest possible standards of ethical business 
conduct. This dedication to social responsibility and human 
rights is expressed in our NXP Human Rights Policy and the 
NXP Code of Conduct (the Code), which are both approved by 
our Board of Directors. 
NXP is guided by the international norms expressed in the 
Universal Declaration of Human Rights and Guiding Principles 
on Business and Human Rights of the United Nations (UN), as 
well as those stated by the International Labour Organization 
(ILO). We are a full member of the Responsible Business 
Alliance (RBA) and, as a signatory of the UN Global Compact, 
we publicly report our Communication on Progress.
Continuous improvement is central to our approach to labor 
and human rights, and we identify ways we can advance our 
efforts by regularly engaging with and seeking feedback 
from key stakeholders, including our team members, our 
supply chain, our customers, our shareholders, industry 
and government regulators, UN agencies and members 
of Non-Governmental Organizations (NGOs), Civil Society 
Organizations (CSOs), and academia. 
This Report summarizes the ways we worked to protect and 
respect human rights during the 2022 calendar year. In keeping 
with the California Transparency in Supply Chains Act of 
2010, the United Kingdom Modern Slavery Act of 2015, and 
the Australia Commonwealth Modern Slavery Act of 2018, 
this Report discloses the efforts and actions we took during 
this period to ensure modern slavery is not taking place in 
our operations and supply chains. We use the term "modern 
slavery" as defined by the UN and the ILO, referring to 
practices such as forced labor, debt bondage, and  
human trafficking.  
This Report was prepared by the NXP Sustainability Office, 
under the supervision of the Environment, Social, and 
Governance (ESG) Management Board, and is approved by the 
Nominating, Governance, and Sustainability Committee of the 
Board of Directors.
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Our Business 
Our Operations 
Our Team Members 
Our Supply Chain
Our Goals
INTRODUCTION
ACRONYMS AND 
ABBREVIATIONS
9

OUR BUSINESS
NXP Semiconductors N.V. (NASDAQ: NXPI), headquartered in 
Eindhoven, the Netherlands, is a leader in secure connectivity 
solutions for embedded applications in the following end 
markets: Automotive, Industrial and Internet of Things (IoT), 
Mobile, and Communications Infrastructure.  
Advancing a Better, Safer, and More Sustainable World
NXP is pushing boundaries and building solutions that 
enhance the capabilities of people, organizations, and the 
world at large. We are committed to keeping our customers 
ahead of the competition and helping them prepare 
for change. We design purpose-built, rigorously tested 
technologies that enable devices to sense, think, connect, 
and act intelligently to improve people's daily lives.		
We believe that technology can help us get things done 
faster – in ways that are easier, more reliable, safer, and use 
less energy – and can create opportunities for more people to 
participate in business, culture, and community.
Whether we reduce the amount of energy consumed by 
smart devices, extend the range of batteries used by electric 
vehicles (EVs), or make 5G more efficient, our collective efforts 
contribute to a more sustainable future.
This winning strategy enables us to capture growth 
opportunities in the end markets we focus on: Automotive, 
Industrial and IoT, Mobile, and Communications Infrastructure.
1 On December 31, 2022, we had approximately 34,500 employees, including approximately 1,500 employees in our joint venture.
+60
~34,500
1
+30
 $13.21 B 
USD
~9,500
Years of 
Combined 
Experience and 
Expertise 
Team Members
Countries 
Worldwide 
2022
Revenue
Patent Families 
Owned
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10

SENSE
Everything 
Aware
AUTOMOTIVE
We provide the foundation for vehicles that can sense, think, connect, and 
act with confidence, so drivers enjoy more convenience, safety, and comfort 
while on the road. Our technologies are enabling the future of safe and secure 
mobility, and support greener driving through enhanced efficiency and the 
transition to electric driving. 
INDUSTRIAL AND IoT
We power optimal performance across industries by automating intelligence 
and increasing security at the edge of the network. Connected devices and 
advanced manufacturing demand flexible, scalable, and sustainable solutions. 
Our broad range of secure, connected solutions simplify edge processing  
and protect interactions with the cloud. We also enable machine learning,  
so devices can be equipped to sense, think, and act. 
 
MOBILE
We support today’s on-the-go lifestyle with innovative solutions, such as the 
mobile wallet, so consumers can securely connect their devices to the world 
around them. With technologies like secure elements, end-to-end services, 
and Ultra-Wideband (UWB) technology, we enhance mobility while  
ensuring privacy. 
COMMUNICATIONS INFRASTRUCTURE
We deliver real-time responsiveness at the speed of 5G, whenever and 
wherever data happens. Our solutions power the 5G-connected, edge-
computing infrastructure that supports adaptive communication networks 
worldwide, leveraging differentiated processing and RF power technologies. 
While this describes NXP today, we are also focused on the future. 
As part of our daily operations, we explore the challenges ahead 
and evaluate opportunities to help advance our world by making it 
better, safer, and more sustainable. 
 Everything safe and secure
 Easy–to–implement, scalable system solutions
NXP’s Unrivaled Technology Portfolio for the Secure Edge
THINK
Everything 
Smart
CONNECT
Everything 
Connected
ACT
Everything 
Efficient
OUR BUSINESS
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INTRODUCTION
ACRONYMS AND 
ABBREVIATIONS

Nijmegen 
Aluminium Technologies
ATMC 
Austin 
Copper Technologies
Chandler, GaN 
Chandler 
Aluminium Technologies
Tianjin
Kaohsiung 
Kuala Lumpur 
Bangkok 
SSMC2 
Singapore  
Aluminium Technologies
Oak Hill 
Austin 
Aluminium Technologies
Wafer Manufacturing Sites
Assembly and Test Sites
OUR OPERATIONS
WORLDWIDE MANUFACTURING SITE LOCATIONS
As a global company and significant player in the semiconductor industry, NXP has a 
responsibility to protect and respect human and labor rights around the world, both in our 
operations and in our supply chain, through ongoing engagement, due diligence, and 
continuous improvement. 
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. 
2 SSMC is a joint venture. 
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INTRODUCTION
ACRONYMS AND 
ABBREVIATIONS

37%
34%
of Team Members 
are Women
of Team Members 
Dedicated  
to R&D
~34,500
Team Members3
9,497
Online Training 
Courses  
Completed4
OUR TEAM MEMBERS
PEOPLE ARE THE HEART OF NXP
Our diverse and talented team members drive the innovation that sets our company apart and 
fuels our success in the market. 
OUR PURPOSE  
Our purpose is to bring together bright minds to create breakthrough technologies that 
make the connected world better, safer, and more secure.
We have a long history of empowering our team members to develop their skill sets and 
expand their capabilities. When it comes to engagement and development, we want our 
team members to grow, progress, and advance across job types, functions, organizations, 
geographies, and levels – all at a pace that is unique to the individual.
OUR VALUES
Our values are our fundamental beliefs and guiding principles. They speak to how we operate, 
how we engage with and develop our team members, and how we push the boundaries of 
creativity and innovation. Our values build on a strong foundation of trust and respect for one 
another. We hold ourselves accountable to these values by ensuring they are reflected in our 
talent programs, including hiring, learning and development, our performance evaluation 
process, our rewards programs and our promotions.
3 On December 31, 2022, we had approximately 34,500 employees, including approximately 1,500 employees in our joint venture.
4 Training by all team members includes approximately 20,000 hours of completed training on the Code of Conduct, which has a 
section on Human Rights. There are also on-demand resources available to NXP team members related to Human Rights.
TRUST AND RESPECT
HIGH PERFORMANCE
INNOVATION
EXPERTISE
COLLABORATION
OWNERSHIP
GROWTH
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Our Business 
Our Operations 
Our Team Members 
Our Supply Chain
Our Goals
INTRODUCTION
ACRONYMS AND 
ABBREVIATIONS

OUR TEAM MEMBERS
OUR POLICIES AND PROGRAMS
Across the globe, we have policies and programs to find and retain the best talent, with a 
specific focus on the following: 
•	Driving team-member engagement
•	Building thought leadership 
•	Embracing diversity, equality, and inclusion
•	Providing competitive and fair compensation and benefits
•	Enabling talent development and growth opportunities
•	Investing in future talent
•	Focusing on team-member retention
•	Giving back to our communities 
We are also committed to protecting the human rights, as well as the health and safety, 
of our team members. To that end, our well-established Corporate Social Responsibility 
and Human Rights Program includes a comprehensive set of requirements for sustainable 
business, and these requirements are incorporated into our core business practices.
OUR TEAM-MEMBER DEMOGRAPHICS
The NXP workforce includes:
•	Direct labor (DL) team members, who are directly involved in the production of goods and 
typically work in our fabs
•	Indirect labor (IDL) team members, who are professional team members at the individual 
contributor, manager, and executive level in non-fab functions, such as R&D and General, 
Sales, and Administrative (GS&A)
On December 31, 2022, our total extended workforce was 39,731 team members, 
representing 33,037 NXP employees, 1,492 joint-venture (JV) employees, and 5,202 people 
working as contingent labor across three regions and 30+ countries. This is representative of 
total NXP headcount (HC) and not a Full-Time Equivalent (FTE) count, as disclosed in the NXP 
International Financial Reporting Standards (IFRS) filing. 
NXP directly hires recruited foreign migrant workers with support from NXP-approved labor 
agencies that help with document processing, such as visa applications, renewals, and 
dormitory accommodations.
Demographics data, given on the following pages, is represented as total NXP HC and is as of 
December 31, 2022.  
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INTRODUCTION
ACRONYMS AND 
ABBREVIATIONS
14

OUR TEAM MEMBERS
TEAM-MEMBER FOOTPRINT
0%
25%
50%
75%
100%
Americas
EMEA
APAC
21%
59%
21%
60%
2018
2019
2020
2022
2021
21%
20%
19%
20%
61%
18%
21%
61%
18%
20%
59%
Team-Member Workforce by Region
0%
25%
50%
75%
100%
Contingent Labor
Joint Venture
Employee
88%
84%
Employee
APAC
EMEA
Total NXP
6%
12%
16%
4%
83%
13%
13%
81%
2022 Extended Workforce by Region
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GENDER REPRESENTATION5
5 While we present gender representation data by men and women, we acknowledge this is not fully encompassing of all gender identities.
6 Executive positions are defined as individuals at the level of Vice President and above.
OUR TEAM MEMBERS
0%
25%
50%
75%
100%
EMEA
Americas
APAC
12%
79%
11%
79%
2018
2019
2020
2022
2021
12%
9%
9%
11%
80%
9%
12%
78%
11%
9%
79%
Women Representation by Region
0%
25%
50%
75%
100%
Women
Men
36%
64%
36%
64%
2018
2019
2022
2021
2020
37%
63%
37%
63%
37%
63%
Workforce by Gender
0%
10%
20%
30%
40%
50%
Individual Contributor
People Manager
Executive
17%
10%
16%
13%
2018
2019
2020
2021
2022
39%
39%
59%
16%
38%
16%
13%
39%
39%
18%
16%
14%
Women Representation by Role6
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AGE REPRESENTATION
OUR TEAM MEMBERS
RACE AND ETHNICITY
0%
25%
50%
75%
100%
51+
31-50
<31
63%
12%
59%
19%
2018
2019
2020
2022
2021
61%
25%
22%
57%
22%
21%
55%
25%
20%
23%
15%
Workforce by Age
United States Race and Ethnicity
Unit
2022
White (Not Hispanic / Latino)
%
49%
Asian (Not Hispanic / Latino)
%
22%
Hispanic / Latino
%
16%
Black or African American  
(Not Hispanic / Latino)
%
6%
Native American or Alaska Native  
(Not Hispanic / Latino)
%
1%
Native Hawaiian or Other Pacific Islander  
(Not Hispanic / Latino)
%
0.2%
Two or More Races (Not Hispanic / Latino)
%
1%
Undeclared
%
6%
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17

NXP is committed to ensuring that working conditions in our supply chain are safe, that 
workers are treated with respect and dignity, and that our products and processes are 
environmentally responsible. 
NXP has business relationships with more than 10,000 suppliers globally. Our suppliers range 
from external manufacturing partners and direct materials suppliers to labor agents, tool and 
machine manufacturers, logistics providers, packaging services, and onsite service providers 
for NXP and supplier facilities. 
We take a collaborative approach to supplier and contractor relationships, observe applicable 
rules of law, and demonstrate respect for ethical business, environmental, and human-rights 
practices. To help drive continuous improvement, we conduct annual risk assessments and 
audit those suppliers identified in the risk-assessment process. 
We hold our suppliers accountable for responsible conduct and performance by requiring 
them to comply with applicable laws and regulations and the NXP Supplier Code of Conduct.
NXP recognizes that, regardless of region, collaboration and transparency contribute to 
long-term sustainability. We proactively work with our suppliers to ensure an ethical and 
sustainable workplace. 
The NXP Top 100 Supplier List represents 98% of procurement expenditures in 2022 for 
materials, manufacturing, and assembly of our products worldwide.
Managing the complexity of our interlinked global supply chains beyond our Tier 1 suppliers 
is a significant challenge, but in recent years we have gained a deeper understanding of 
the labor-agent network in our supply chain by engaging with the independent, non-profit 
organization, Verité. 
Future Reports will include additional activities to map Tier 2 suppliers through industry 
collaboration, and will cover our efforts to screen and prioritize supply-chain partners  
and labor agents. 
OUR SUPPLY CHAIN
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As part of our commitment to prevent human-rights abuses, we make human rights and team-member health and safety key 
pillars in our Human Rights and Sustainability Policies and prominent elements of our strategy and goal setting. 
The goals we set for 2022 were meant to ensure continuous improvement in our Corporate Social Responsibility and Human 
Rights program, not only in our own operations but also in those of our supply-chain partners. In view of the easing COVID-19 
pandemic conditions and the re-opening or international borders, our intent was to reinvigorate due-diligence work in our supply 
chain and continue our efforts to align our suppliers to our values. 
To read about our 2022 goal performance, see the "Track" section of the "Human-Rights Due Diligence" chapter.
OUR GOALS
Internal NXP Audit Scores
>95%
Self-Assessment Scores
>90%
Work Week of <60 Hours and One Rest Day 
per Six Days Worked
SOCIAL-RESPONSIBILITY GOALS
NXP GOALS
SUPPLIER GOALS
85% Closure Rate for Corrective Action Plans
Supply-Chain Due Diligence and Collaboration
100% Certified Mineral Smelters
100% Key Suppliers Sign Supplier Code of 
Conduct Conformity Statement
No Priority or Major Nonconformances from 
Internal/Customer Audits
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LABOR AND HUMAN-
RIGHTS COMMITMENT

NXP and our business partners must not be involved in any form of human-rights abuses. This includes the transportation, 
harboring, recruitment, transfer, or receipt of persons by means of threat, force, coercion, abduction, fraud, or payments to any 
person having control over another person for exploitation.
We are committed to the abolition of child labor, and we prohibit discrimination based on race, national origin, color, gender, 
religion, age, pregnancy, sexual orientation, physical or mental disability, and/or political affiliation. NXP also prohibits the practice 
of charging fees to workers at any stage of employment and the retention of personal or government-issued documents. NXP 
respects workers' rights, including the freedom of association and the right to collective bargaining.
If any human-rights abuses or priority nonconformances are found in our due diligence, NXP is committed to carrying out full 
remediation efforts.
LABOR AND HUMAN-RIGHTS COMMITMENT
NO FEES  
NXP has had a no-fees policy for all workers, including 
temporary, migrant, intern, contract, direct team-
member, and all other types of workers, for internal 
operations since 2013 and for suppliers since 2016.  
This policy ensures workers are not required to pay  
fees, deposits, or debt repayments for their recruitment 
or employment. 
 
Examples of fees include application, recruiting, hiring, 
placement, and processing fees of any kind at any 
stage, as well as additional fees, such as pre-departure 
fees for tests and medical exams, documentation, 
and government-issued documents, as well as all 
transportation (such as transportation when a worker 
returns to their sending country at the end  
of employment). 
 
If NXP discovers that any fees have been paid by 
workers, either in our company or our supply chain, 
these fees must be fully reimbursed to the worker by 
their direct employer. 
NO RETENTION OF DOCUMENTS   
NXP, suppliers, and labor agents may not withhold 
personal documents, travel/residency permits, or 
government-issued documents unless required by law. 
Personal, lockable storage units must be provided for 
the safekeeping of such documents. 
WORKING HOURS AND REST DAYS     
A work week must not exceed 48 hours of regular 
time or 60 hours of regular work plus overtime, or the 
maximum set by local law, whichever is stricter, except 
in emergency or unusual situations, such as natural 
disasters or national holidays in which mass workers 
travel to their hometowns. These situations must be 
approved by executive management. 
 
Workers are allowed legally mandated time off, 
including breaks, holidays, vacation days, and other 
types of time off, such as maternity leave. Workers 
shall have at least one scheduled day off every seven 
days and not work more than six consecutive days. All 
overtime must be voluntary.
21 
2022 HIGHLIGHTS
INTRODUCTION
LABOR AND HUMAN-
RIGHTS COMMITMENT
HUMAN-RIGHTS  
DUE DILIGENCE
LOOKING FORWARD
CONCLUSION
ACRONYMS AND 
ABBREVIATIONS

LABOR AND HUMAN-RIGHTS COMMITMENT
CHILD LABOR AND YOUNG WORKERS    
Child labor is prohibited. The term “child” refers 
to any person under the age of 15, under the age 
for completing compulsory education, or under the 
minimum age for employment in the country,  
whichever is stricter. 
 
Subject to compliance with local laws and regulations, 
the use of legitimate workplace apprenticeship or 
internship programs which employ young workers 
between the ages of 16 and 18, and comply with all 
laws and regulations, is supported. However, young 
workers must not perform work that may be likely to 
jeopardize their health or safety, such as night-shift, 
overtime, or hazardous work. 
EMPLOYMENT CONTRACTS   
Employment contracts must be written in a language 
understood by the worker and must be provided prior 
to departure or hiring. Contracts must clearly outline the 
working conditions, including the nature of work, details 
of working hours/work shifts and rest days, wages, 
benefits, and duration of the contract. No substitutions 
or changes are allowed in the employment agreement 
unless the changes are made to meet local law and 
provide similar or better terms. 
 
All workers must be provided a copy of the 
employment contract and any amendments. If housing 
accommodations are part of the contract, they must 
meet country housing and safety standards as well 
as the housing standards found in the NXP Auditable 
Standards on Social Responsibility. 
 
Workers are free to leave work or terminate their 
employment at any time without penalty, upon 
providing reasonable notice. Any legal limitations on 
the movement of foreign workers are indicated in the 
employment contract. However, no undue restrictions 
on a worker’s freedom of movement are permitted 
during or outside working hours. Workers  
are guaranteed unrestricted access to toilets and 
drinking water. 
COMPENSATION AND BENEFITS  
Compensation and benefit practices must comply with 
all applicable wage laws, including those relating to 
minimum wages, overtime hours, and legally mandated 
benefits. Workers must be compensated for overtime at 
pay rates greater than regular hourly rates as required 
by applicable laws and regulations or employment 
contract, whichever is stricter. 
 
Deductions from wages as a disciplinary measure are 
prohibited. Workers must be offered vacation time, 
leave periods, and holidays consistent with applicable 
laws and regulations. 
 
Wages must be paid in a timely manner in which there 
is no delay, in accordance with local legal requirements 
and contractual agreement. No worker is paid less 
than the legal minimum wage, and there is equal pay 
for equal work. If the country does not have a legally 
set minimum wage, the industry prevailing wage must 
apply as the standard. For each pay period, employees 
must be provided with an understandable wage 
statement that includes sufficient information to verify 
accurate compensation for work performed and in which 
deductions for room and board have consent  
of the worker. 
 
Workers must not be forced or required to participate 
in a forced savings or loan scheme where repayment 
terms are indicative of debt bondage or forced labor. 
Deductions required by applicable law and regulations, 
such as taxes and social insurance, must be understood 
by the worker. 
22 
2022 HIGHLIGHTS
INTRODUCTION
LABOR AND HUMAN-
RIGHTS COMMITMENT
HUMAN-RIGHTS  
DUE DILIGENCE
LOOKING FORWARD
CONCLUSION
ACRONYMS AND 
ABBREVIATIONS

HUMANE TREATMENT  
Harsh or inhumane treatment of workers, including any 
sexual harassment, sexual abuse, corporal punishment, 
mental or physical coercion, or verbal abuse is  
not tolerated. Nor is there to be the threat of any  
such treatment. 
 
Free and easily accessible channels for workers 
to anonymously report violations of policy on fair 
treatment must be available. In addition, there must be 
a non-retaliation policy for reporting incidences of unfair 
treatment that is clearly communicated to workers. 
NON-DISCRIMINATION  
Workers must be free of harassment and unlawful 
discrimination. Workers or potential workers may not  
be subjected to medical tests or physical exams that 
could be used in a discriminatory way. Workers must  
be provided with reasonable accommodation for 
religious practices.  
 
Discrimination based on race, color, age, gender, sexual 
orientation, gender identity and expression, ethnicity or 
national origin, disability, pregnancy, religion, political 
affiliation, union membership, covered veteran status, 
protected genetic information, or marital status in hiring 
and employment practices, such as wages, promotions, 
rewards, and access to training, is prohibited.
FREEDOM OF ASSOCIATION AND COLLECTIVE 
BARGAINING 
The rights of workers to associate freely, join or 
not join labor unions, seek representation, or join 
workers’ councils in accordance with local laws must 
be respected. Workers or their representatives must 
be able to openly communicate and share grievances 
with management regarding working conditions 
and management practices without fear of reprisal, 
discrimination, intimidation, or harassment.  
 
Within the framework of applicable laws, regulations, 
and prevailing labor relations and employment 
practices, workers have the right to be represented 
by labor unions or other worker organizations, and to 
engage in collective bargaining.
LABOR AND HUMAN-RIGHTS COMMITMENT
NEW NXP HUMAN RIGHTS POLICY 
NXP collaborates closely with our business partners to proactively and transparently identify and address potential human-
rights allegations and prevent or address credible human-rights abuses. The scope of this commitment includes, but is not 
limited to, the transportation, harboring, recruitment, transfer, or receipt of persons by means of threat, force, coercion, 
abduction, fraud, or payments to any person having control over another person for exploitation. This commitment is 
reflected in the NXP Human Rights Policy published in 2022. The Policy was prepared by the NXP Sustainability Office, 
under the supervision of the ESG Management Board and with consultation and feedback from external and internal 
stakeholders, and was then approved by the Board of Directors.
NXP IN ACTION
23 
2022 HIGHLIGHTS
INTRODUCTION
LABOR AND HUMAN-
RIGHTS COMMITMENT
HUMAN-RIGHTS  
DUE DILIGENCE
LOOKING FORWARD
CONCLUSION
ACRONYMS AND 
ABBREVIATIONS
23

HUMAN-RIGHTS  
DUE DILIGENCE


HUMAN-RIGHTS DUE DILIGENCE
•	Policies, standards, and tools
•	ESG Management Board
•	Capacity-building
•	Collaboration with Purchasing Team
•	Monthly post-audit follow-up calls 
INTEGRATE  
AND ACT
We use assessment 
findings to help guide  
our growth
•	30/60/90-day post-audit follow-up calls
•	Verification audits
•	Monthly key performance indicators (KPIs)
•	Survey
•	Private worker interviews
TRACK
We gauge progress by 
monitoring our actions 
and responses
•	SpeakUp hotline
•	Worker-management dialogues and focus-group discussions
•	Internal and supplier grievance mechanisms
•	Annual reporting
COMMUNICATE
We share how we are 
addressing our impacts
•	Supplier risk assessment
•	Self-assessment questionnaire
•	Audit
•	Collaboration and engagement with stakeholders and  
human-rights experts
•	Review and assessment of previous due-diligence results
IDENTIFY  
AND ASSESS
We evaluate actual  
and potential human-
rights impacts
OVERVIEW 
In 2022, to identify potentially adverse human-rights 
impacts and put in place prevention and mitigation 
measures, we updated the NXP Human Rights 
Management System. The Management System provides 
clear guidance on how human-rights due diligence is to 
be conducted across our business value chain. We use 
input from internal and external resources to inform our 
approach and responses. 
Due diligence is an integral part of our business 
decision-making and risk-management systems. Our 
in-place due-diligence processes respect the way we 
manage labor and human rights, health and safety, and 
environmental risks associated with our operations and 
supply chain. Such due diligence includes risk assessments, 
compliance monitoring, remediation, and consultation and 
engagement with workers, management, and other key 
stakeholders, as well as measurement and public reporting. 
NXP examines human-rights risks on a continual basis, and 
relies on stakeholder feedback and engagement when 
evaluating these risks. 
NXP's due diligence is based on the UN Guiding Principles 
on Business and Human Rights (UNGPs). Our model 
includes the four elements of the due-diligence process: 
1.	 Assessing actual and potential human-rights impacts 
(Guiding Principle 18)
2.	 Integrating and acting upon the findings (Guiding 
Principle 19)
3.	 Tracking responses (Guiding Principle 20)
4.	 Communicating how impacts are addressed (Guiding 
Principle 21)
UNGP 18
UNGP 20
UNGP 21

UNGP 19
25 
2022 HIGHLIGHTS
INTRODUCTION
LABOR AND HUMAN-
RIGHTS COMMITMENT
HUMAN-RIGHTS  
DUE DILIGENCE
Identify and Assess 
Integrate and Act 
Track 
Communicate
LOOKING FORWARD
CONCLUSION
ACRONYMS AND 
ABBREVIATIONS

HUMAN-RIGHTS DUE DILIGENCE
For each element of the due-diligence process, we gather 
important information from many sources, including relevant 
stakeholders, about the topics involved. We then use 
strategies, processes, and tools we develop to address and 
analyze the input. We use our output as part of a feedback 
loop that creates an ongoing due-diligence approach with 
built-in mechanisms for continuous improvement. 
FEEDBACK
INPUTS
STRATEGY, PROCESSES,  
AND TOOLS
OUTPUTS
26 
2022 HIGHLIGHTS
INTRODUCTION
LABOR AND HUMAN-
RIGHTS COMMITMENT
HUMAN-RIGHTS  
DUE DILIGENCE
Identify and Assess 
Integrate and Act 
Track 
Communicate
LOOKING FORWARD
CONCLUSION
ACRONYMS AND 
ABBREVIATIONS
26

OUTPUTS
•	Supplier risk assessments have been effective in identifying 
high-priority suppliers and resulting in due diligence 
that identified new and repeated human-rights risks and 
challenges at some of our suppliers. The process needs further 
enhancement to ensure that all indirect suppliers are included 
in the process.
•	Adjusted the NXP Auditable Standards on Social 
Responsibility. The standards were revised to align with 
updates to the RBA Code of Conduct, and to address growing 
stakeholder expectations.
•	The RBA Self-Assessment outcome is consistent with NXP’s 
own audit results of NXP manufacturing sites, showing 
improved and sustained performance at  
NXP sites.
•	NXP’s audit program and tools are consistently recognized by 
third-party auditors as more progressive and comprehensive 
than the industry equivalent.
•	Audit results have demonstrated the effectiveness of the NXP 
Auditable Standards on Social Responsibility and are effective 
in driving improvement both internally and in the supply chain. 
The goal is to ensure continued relevance and progressiveness 
of the audit program to drive further impact.
•	Peer review and expert engagement have identified key 
areas where NXP's Corporate Social Responsibility and 
Human Rights Program can further develop. One area for 
development is preparation for regulations on mandatory 
human-rights due diligence.
UNGP 18
OVERVIEW OF HUMAN-RIGHTS DUE-DILIGENCE PROGRAM
STRATEGY, PROCESSES, AND TOOLS
•	Conduct annual supplier risk assessments, based on the 
Maplecroft Index on Country Risks, Verité's Cumulus Forced 
Labor Screen risk analysis of labor supply-chain due diligence, 
and data analytics on historical results of human-rights due 
diligence in the supply chain.
•	Deploy NXP’s annual self-assessment questionnaires and the 
Responsible Business Alliance (RBA) Validated Assessment 
Program (VAP) self-assessment questionnaire.
•	Maintain an audit program for NXP and our supply 
chain, based on the NXP Auditable Standards on Social 
Responsibility, the NXP Audit Checklist, and the RBA Code of 
Conduct version 7.0 (for RBA VAP audits).
•	Engage externally and gain insights from our peers by 
participating in peer-learning forums, such as those provided 
by the Global Business Initiative (GBI) on Human Rights.
INPUTS
•	Gauge supplier risk by regularly updating our active supplier 
list, which includes direct and indirect suppliers, as well as 
onsite contractors.
•	Every two years, each manufacturing site undergoes a third-
party audit. The audit is either conducted by Verité, using 
the NXP Auditable Standards on Social Responsibility, or by 
a designated audit firm that uses the Validated Assessment 
Program (VAP) of the Responsible Business Alliance (RBA), 
which is based on the RBA Code of Conduct.
•	Engage with external entities to assess our human-rights 
performance, using benchmarks and data from third-party and 
supply-chain audits.
IDENTIFY AND ASSESS
27 
2022 HIGHLIGHTS
INTRODUCTION
LABOR AND HUMAN-
RIGHTS COMMITMENT
HUMAN-RIGHTS  
DUE DILIGENCE
Identify and Assess 
Integrate and Act 
Track 
Communicate
LOOKING FORWARD
CONCLUSION
ACRONYMS AND 
ABBREVIATIONS

OUTPUTS
•	We adjusted our NXP Supplier Code of Conduct and NXP 
Auditable Standards on Social Responsibility to align with 
stakeholder requirements, such as the RBA's Code of Conduct 
version 7.0. The scoring criteria for Supplier Risk Assessment 
was also reviewed and updated to reflect a changing human-
rights landscape and evolving challenges, especially forced 
labor in certain geographies where our supply-chain partners 
are located.
•	The Nominating, Governance, and Sustainability Committee 
of the Board of Directors approved NXP’s 2022 Corporate 
Sustainability Report and this 2022 Modern Slavery Report.
•	Workers, especially foreign migrant workers, continue to be 
affected by the ongoing COVID-19 challenge of business 
downsizing and/or shutdowns. NXP was able to hire a group 
of Nepali workers who were affected by the shutdown of 
their previous employer, through the Malaysian Recalibration 
program for migrant workers, which allows affected migrant 
workers to seek re-employment at another employer.
•	NXP's Corporate Social Responsibility and Human Rights 
Audit Program continued to be severely impacted by the 
COVID-19 pandemic. We managed to conduct nine supplier 
due-diligence audits through a combination of remote and 
onsite audits.
OVERVIEW OF HUMAN-RIGHTS DUE-DILIGENCE PROGRAM
STRATEGY, PROCESSES, AND TOOLS
•	Regularly review our policies, procedures, and tools, including 
our Sustainability Policy, Code of Conduct, Supplier Code of 
Conduct, Auditable Standard on Social Responsibility, Audit 
Checklist, and Supplier Risk Assessment.
•	Consult about and manage oversight of the requirements 
of our Corporate Social Responsibility and Human Rights 
Program, by working with NXP sites on the impact and 
practicality of changing or revising the NXP Auditable 
Standards on Social Responsibility, and gaining ESG 
Management Board approval of changes and revisions.
•	Engage with external stakeholders and human-rights experts, 
and seek peer review.
INPUTS
•	Review the results of our assessments and human-rights due 
diligence, focusing on results generated by internal and third-
party audits of our manufacturing sites and suppliers.
•	Actively seek peer reviews and feedback from  
human-rights experts.
•	Monitor developments in the regulatory landscape for human 
rights and the work of industry groups and associations.
•	Engage with team members and supply-chain workers to 
generate feedback.
•	Regularly interact with other stakeholders, including investors, 
customers, suppliers, peers, experts, Non-Governmental 
Organizations (NGOs), and Civil Society Organizations (CSOs).
UNGP 19
INTEGRATE AND ACT
28 
2022 HIGHLIGHTS
INTRODUCTION
LABOR AND HUMAN-
RIGHTS COMMITMENT
HUMAN-RIGHTS  
DUE DILIGENCE
Identify and Assess 
Integrate and Act 
Track 
Communicate
LOOKING FORWARD
CONCLUSION
ACRONYMS AND 
ABBREVIATIONS

OUTPUTS
•	The nonconformance closure rate for 2022 was 88%, 
compared to 89% in 2021. The lower closure rate is largely 
due to the fact that we conducted nearly twice as many audits 
in 2022. The lower rate can also be attributed to increased 
strain on the supply chain during the pandemic, and the 
production ramp-up to overcome the semiconductor shortage.
•	We conducted audits of selected suppliers as a result of the 
2020 COVID-19 pulse survey. These suppliers had indicated 
that their business had been affected by the COVID-19 
pandemic challenges and had adjusted how they manage 
their workers.
•	Our KPIs continue to show progress in our human-rights due 
diligence since the program started in 2013. The improved 
process, which uses an innovative data-analysis tool we 
implemented, proved to be a success in helping us analyze 
the impact and effectiveness of our program. We shared the 
process and tool with our peers and received very positive 
feedback on its use.
•	Workers are aware of the grievance mechanisms and are using 
it to express their concerns and give feedback on the impact 
of COVID-19. NXP tracks worker feedback and grievances 
closely and collaborates with internal teams and local CSOs 
to render necessary support and remediation. This is a clear 
indication that having a robust Access to Remedy is critical.
OVERVIEW OF HUMAN-RIGHTS DUE-DILIGENCE PROGRAM
STRATEGY, PROCESSES, AND TOOLS
•	Review due-diligence outcomes and follow-ups, using 
verification audits to confirm closure of corrective actions. 
•	Consolidate and monitor results of due-diligence activities, 
issuing a monthly KPI report to key internal stakeholders and 
holding a monthly supply-chain progress meeting with the 
Purchasing Team.
•	Collaborate with relevant NXP functions to review, address, 
and remedy team-member and worker feedback, working with 
Human Resources for internal NXP team-member feedback 
and grievances, Investor Relations for shareholder feedback 
and benchmarking, Purchasing for feedback and grievances 
from supply-chain workers, and NGOs/CSOs for sensitive 
grievances from workers who will require identity protection.
INPUTS
•	Use our assessments and human-rights due diligence 
to measure progress and monitor closure rates for audit 
nonconformances, based on internal, supply-chain, and 
customer audits.
•	Find alternative engagement methods, such as  
supply-chain surveys, to continue due-diligence during 
pandemic restrictions.
•	Encourage team-member and worker communication and 
gather feedback using various methods, including grievance 
mechanisms, employee focus groups, and independent and 
private worker interviews during audits.
•	Actively solicit feedback from external stakeholders,  
including investors, customers, suppliers, peers, experts, 
NGOs, and CSOs.
UNGP 20
TRACK
29 
2022 HIGHLIGHTS
INTRODUCTION
LABOR AND HUMAN-
RIGHTS COMMITMENT
HUMAN-RIGHTS  
DUE DILIGENCE
Identify and Assess 
Integrate and Act 
Track 
Communicate
LOOKING FORWARD
CONCLUSION
ACRONYMS AND 
ABBREVIATIONS

UNGP 21

OUTPUTS
•	The Winning Culture Survey had an 89% response rate and an 
increase in favorability to 97%. Using team-member feedback, 
we have created and improved company and/or country  
and region-specific programs and made updates to our  
tools and resources.
•	Workers in our supply chain use our grievance mechanism to 
express their concerns and provide feedback. This is especially 
true for those workers who are affected by continued 
pandemic-related issues.
•	NXP tracks all feedback closely and collaborates with internal 
teams and local CSOs to render necessary support and 
remediation. This is a clear indication that having a robust 
Access to Remedy is critical.
•	Through peer review and engagement with human-rights 
experts, we identified key areas where NXP's Corporate Social 
Responsibility and Human Rights Program can further develop, 
such as strengthening our due-diligence approach to prepare 
for new mandatory regulations and improving Access to 
Remedy for NXP team members and workers in our  
supply chain.
OVERVIEW OF HUMAN-RIGHTS DUE-DILIGENCE PROGRAM
STRATEGY, PROCESSES, AND TOOLS
•	Encourage and support internal NXP dialogue, using various 
grievance mechanisms, including the externally-managed NXP 
SpeakUp hotline for anonymous reporting of grievances, focus 
groups, our Winning Culture Survey, and team-member town-
hall and dialogue sessions, as well as private and independent 
team-member interviews during audits.
•	Engage with supplier workforces by providing access to the 
externally managed NXP SpeakUp hotline for anonymous 
reporting of grievances, along with private and independent 
worker interviews during audits.
•	Report annually on NXP’s Corporate Social Responsibility and 
Human Rights Program, through our Corporate Sustainability 
Report, this Modern Slavery Report, and our Sustainability and 
ESG website.
•	Engage with NGOs/CSOs and other experts to discuss NXP’s 
Corporate Social Responsibility and Human Rights Program 
and possible areas of improvement.
INPUTS
•	Regularly communicate with all our stakeholders – from 
management, team members, and supply-chain workers to 
supply partners, customers, investors, NGOs, and CSOs – 
and encourage them to engage with our Corporate Social 
Responsibility and Human Rights Program.
COMMUNICATE
30 
2022 HIGHLIGHTS
INTRODUCTION
LABOR AND HUMAN-
RIGHTS COMMITMENT
HUMAN-RIGHTS  
DUE DILIGENCE
Identify and Assess 
Integrate and Act 
Track 
Communicate
LOOKING FORWARD
CONCLUSION
ACRONYMS AND 
ABBREVIATIONS

IDENTIFY  
AND ASSESS
WE EVALUATE ACTUAL AND POTENTIAL  
HUMAN-RIGHTS IMPACTS
UNGP 18

IDENTIFY AND ASSESS
UNGP 18
ENGAGEMENTS
Stakeholder feedback is an important part of our Labor and Human Rights strategy. It helps us evolve our own processes and 
culture, while also helping us guide our supply chain in practicing continuous improvement.
When making business decisions, we endeavor to consider the views of our stakeholders, by acknowledging their viewpoints 
and demonstrating respect for our shared priorities. We believe this approach reflects our commitment to transparency and 
accountability, and ultimately contributes to long-term value. Throughout the year, we engage formally and informally with our 
stakeholders to explore labor and human-rights issues, along with trends and developments relevant to our industry.
The table below gives examples of how we engaged with internal and external stakeholders in 2022. Frequency and type of 
engagement varies by stakeholder group and is tailored to stakeholder requirements.
2022 Stakeholder Engagement
Stakeholder
Engagement
Feedback
Outcomes and Follow-Up
Team Members
In Malaysia, NXP was able to hire new foreign migrant 
workers as a result of re-opening of borders. New 
foreign migrant workers were recruited and hired 
from Indonesia and Nepal. Newly hired workers 
were interviewed, to ensure that their recruitment 
and hiring is in conformance with NXP policies and 
practices, and to confirm they were treated fairly 
through the entire process. 
Although workers did not report 
any non-conformities during 
their recruitment and hiring, NXP 
must remain vigilant to ensure 
compliance with all recruitment and 
hiring practices, particularly those 
recruitment activities that happen 
deeper in the labor supply chain.  
The COVID-19 pandemic has hampered our ability to conduct 
comprehensive due-diligence of our manufacturing facilities. We have 
scheduled a full RBA VAP audit of our Malaysia site, with a special 
emphasis on recruitment and hiring activities of foreign migrant workers. 
Customers
No customer audits were initiated in 2022.
This is a sign that customers have  
a high regard for NXP's Corporate  
Social Responsibility and Human 
Rights Program.
We scheduled RBA VAP verification audits at our Taiwan and Thailand 
sites, to verify closure of the original RBA VAP audits that were conducted 
in 2021. Both verification audits confirmed full closure of all corrective and 
preventive actions. 
SEMI Semiconductor 
Climate Consortium 
(SCC)
Joined as a founding member.
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 improve our carbon footprint 
and human-rights impact. The SCC expects to announce a governing 
committee and several working groups in early 2023.
32 
2022 HIGHLIGHTS
INTRODUCTION
LABOR AND HUMAN-
RIGHTS COMMITMENT
HUMAN-RIGHTS  
DUE DILIGENCE
Identify and Assess 
Integrate and Act 
Track 
Communicate
LOOKING FORWARD
CONCLUSION
ACRONYMS AND 
ABBREVIATIONS

2022 Stakeholder Engagement
Stakeholder
Engagement
Feedback
Outcomes and Follow-Up
Suppliers
Continued to conduct onsite and remote social-
responsibility audits, and collaborated with industry 
peers through the Responsible Business Alliance 
Validated Assessment Program (VAP). Increased 
social-responsibility training for suppliers.
Top three supplier audit 
nonconformances: Freely 
Chosen Employment, Emergency 
Preparedness, and Working Hours. 
Supplier Corrective Action Plans are 88% closed.  
 
Increased supplier training, with a focus on NXP's priority requirements 
and 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 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.
Responsible Labor 
Initiative (RLI)
Attended monthly workgroup meetings and, as 
a Board delegate, attended quarterly Steering 
Committee meetings.
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 Minerals 
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.
Upgraded tools for new Conflict Minerals Reporting Template (CMRT) and 
updated Extended Minerals Reporting Template (EMRT).
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 on 
access to remedy for vulnerable 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-sectorial setting.
European 
Partnership  
for Responsible  
Minerals (EPRM)
Participated in Governance Board meetings, bi-
annual member meetings, 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.
IDENTIFY AND ASSESS
33 
2022 HIGHLIGHTS
INTRODUCTION
LABOR AND HUMAN-
RIGHTS COMMITMENT
HUMAN-RIGHTS  
DUE DILIGENCE
Identify and Assess 
Integrate and Act 
Track 
Communicate
LOOKING FORWARD
CONCLUSION
ACRONYMS AND 
ABBREVIATIONS

IDENTIFY AND ASSESS
2022 Stakeholder Engagement
Stakeholder
Engagement
Feedback
Outcomes and Follow-Up
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. Created a link between 
the UN's Sustainable Development Goals (SDGs) and NXP's ESG Program.
World 
Semiconductor 
Council (WSC)
Chaired the Responsible Sourcing and the Health and 
Safety workgroups, and attended two WSC meetings, 
several workgroup meetings, and various expert calls.
Best practices for responsible  
sourcing of minerals and Health  
and Safety practices.
Applying best practices to advance our Health and Safety programs. 
Annual collection of Health and Safety data from member companies. 
Kept track of legal developments and aligned with other industry 
initiatives. Published an update in the WSC joint statement.
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.
Cumulus
Conducted due-diligence exercises relating to 
migrant workers and broker supply chain of  
selected suppliers.
Increased transparency to the migrant-
worker supply chain.
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.
Verité
Conducted third-party audits on social responsibility, 
supported by consultation and collaboration, to 
review NXP’s Corporate Social Responsibility and 
Human Rights Program. Supported capacity-building 
in NXP's Social Responsibility programs at NXP sites 
and in the supply chain.
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. 
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ACRONYMS AND 
ABBREVIATIONS

IDENTIFY AND ASSESS
SALIENT HUMAN-RIGHTS RISK ASSESSMENT
In our operations and our supply chain, we use indirect labor, 
direct labor (including foreign migrant workers), temporary 
workers, and agency workers. We engage with all relevant 
functions and businesses across NXP and our supply chain to 
identify practices that may lead to non-compliance with our 
policies and standards.
The Social Responsibility and Procurement Teams identify 
salient human-rights risks using our own risk analysis, our 
collaboration and engagement with key stakeholders – 
including industry associations, expert groups, and non-
governmental organizations (NGOs) – and the results from our 
supplier assessments and audits. The following are the issues 
within NXP and our supply chain we determined are most 
critical to labor and human rights.
Forced and  
Bonded Labor
No Fees
Retention of 
Documents
Fair Treatment 
of Vulnerable 
Workers
Fair Wages
Accurate  
Contracts
Young Workers
Working Hours  
and Rest Days
Salient  
Human-Rights  
Issues
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Track 
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ACRONYMS AND 
ABBREVIATIONS

•	A clear policy prohibits charging fees to workers and  
ensures compliance.
•	If workers are found to have paid fees to gain employment, 
reimbursement to workers must be completed within 30 days  
of discovery. 
•	A grievance mechanism is in place to confidentially report  
policy violations.
NO FEES
•	A clear policy states workers are not required to surrender  
personal documents.
•	Personal, lockable, secured storage units are available in 
facilities and/or dormitories/housing.
•	A grievance mechanism is in place to confidentially report  
policy violations.
RETENTION OF 
DOCUMENTS
IDENTIFY AND ASSESS
•	The well-being and health and safety of workers must be 
ensured during pandemic and post-pandemic conditions.
•	Workers must not be discriminated against, regardless of  
pandemic circumstances.
•	Workers must continue to be given adequate protection from 
exposure to hazards, including the pandemic illness. 
•	A grievance mechanism is in place to confidentially report unfair 
treatment of workers.
FAIR 
TREATMENT OF 
VULNERABLE 
WORKERS
We minimize human-rights risks by making continuous improvements, to our policies, 
strategies, collaborative capacity-building, self-assessments, and audits, within NXP and our 
supply chain, based on our own experiences, shared industry best practices, and emerging 
issues, trends, and developments.
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ACRONYMS AND 
ABBREVIATIONS
36

IDENTIFY AND ASSESS
•	Contracts may not violate relevant laws or place a worker at risk.
•	Prior to departure or hiring, workers are provided with an 
accurate written employment contract with details of working 
conditions including nature of work, wages, benefits, and 
duration of contract.
•	Contracts are written in a language that the worker understands 
prior to employment. If amendments are made prior to 
employment, the contract must provide equal or better terms  
of employment.
•	Contracts ensure workers are free to leave their employment,  
upon giving reasonable notice, without penalty per applicable  
law and regulations.
•	A grievance mechanism is in place to confidentially report 
contract-related information.
ACCURATE 
CONTRACTS
•	Workers cannot receive less than the legal minimum wage for all 
regular hours worked. If legally minimum wage is not set, then 
industry prevailing wage will be the standard.
•	Overtime rates are to be applied to the base wage as required 
by law or employment contract, whichever is higher. Where the 
law is silent, the premium must be at least an additional 50% 
per hour of the base wage for piece rate and hourly work, or an 
additional 50% per hour of the average earnings.
•	Workers have wage slips in a language they understand,  
with clear details regarding regular and overtime hours  
worked and rates.
•	Wages are paid within 14 days after the end of the  
working period.
•	Deductions as a disciplinary measure are prohibited.
•	There is a grievance mechanism to confidentially dispute wage 
and benefit-related payments.
FAIR WAGES
•	There is a clear policy to manage and limit worker hours to no 
more than 60 hours per week or the legal limit, whichever is 
stricter, and all overtime work is voluntary.
•	Record systems and mechanisms are in place to identify and 
administer the policy.
•	The regular work week cannot exceed 48 hours and the daily 
scheduled work cannot exceed 12 hours a day.
•	Workers receive at least one day off per every six days worked.
•	Workers are allowed at least a 20-minute rest break every four 
hours worked as well as a defined meal break.
•	Workers are provided with legally mandated holidays and  
vacation days.
•	A grievance mechanism is in place to confidentially report  
policy violations.
WORKING 
HOURS AND 
REST DAYS
•	The term “child” refers to any person under the age of 15 or  
under the minimum age for employment in the country,  
whichever is greater.
•	A comprehensive policy for child labor clearly states the 
minimum age for workers.
•	A comprehensive policy prohibits young workers under the age 
of 18 from performing work that may jeopardize their health or 
safety, including night-shift and overtime work.
•	An age-verification process is in place with inspection of validity 
of at least two identity documents, to be returned to worker.
•	Personal-record systems are in place as a means of identification 
and verification.
•	If workers are discovered to be below the legal age limit, 
workers will be protected and provided the opportunity for 
completion of education.
•	A grievance mechanism is in place to confidentially report  
policy violations.
YOUNG 
WORKERS

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ACRONYMS AND 
ABBREVIATIONS

IDENTIFY AND ASSESS
Our Operations
Our Supply Chain
No Fees
Workers did not pay fees.
35% of audited suppliers charged hiring fees. All but two suppliers refunded these fees. 
We are following up with the remaining suppliers to close out the nonconformance.
Retention of 
Documents
Personal documents are retained by workers.
Of the 14 suppliers audited, six suppliers had retained personal documents of workers. 
All six suppliers have since returned the documents to the workers.
Fair 
Treatment of 
Vulnerable 
Workers
While the hiring of foreign migrant workers at NXP slowed due to the ongoing 
COVID-19 pandemic and border closures, NXP continued to comply with our Employer 
Pays policy, which ensures these workers are treated with respect and dignity during 
recruitment and hiring. 
The resumption of supplier audits enabled NXP to interview workers and gauge their 
well-being during the pandemic. No serious issues have been reported, even though 
workers were provided with the NXP anonymous phone line to report any concerns or 
impacts to their rights.
Working 
Hours and  
Rest Days
At one site, the 60-hour working limit was exceeded for approximately 900 workers, or 
30% of the site's direct-labor workforce, for a period of one week. This was due to the 
continued labor shortage, challenges in hiring foreign migrant workers, and a border 
closure during a significant increase in production demand. The site was able to resolve 
the issue quickly by efficiently allocating the workforce to support production. 
64% of audited suppliers did not monitor working hours and rest days, resulting in 
nonconformances against NXP's requirements. Four suppliers have yet to close  
this nonconformance.
Young 
Workers
No child labor. All young workers are in accordance with relevant laws and regulations.
No child labor. All young workers are in accordance with relevant laws and regulations.
Accurate 
Contracts
Accurate contracts issued to all workers in their native language.
42% of audited suppliers had inaccurate contracts. All suppliers, except one, have 
closed this nonconformance. We are following up with the remaining supplier to close 
out the nonconformance.
Fair Wages
No discrepancies in wages or benefits.
21% of audited suppliers had discrepancies in wages and benefits.  
All suppliers have closed this nonconformance.
ADDRESSING MODERN-DAY SLAVERY ISSUES
NXP’s Corporate Social Responsibility and Human Rights Program was again recognized in 
2022 for its work in addressing modern-day slavery issues within NXP operations and our 
supply chain. 
The Asia-Pacific UN Forum on Business and Human Rights invited NXP to be a featured 
panelist in a session about access to remedy for vulnerable workers during the COVID-19 
pandemic. We described our work in the supply chain and our efforts to help foreign migrant 
workers, who are some of the most vulnerable to human-rights abuses during a crisis such as 
the COVID-19 pandemic and its aftermath. We also offered a proposal for how businesses 
can collaborate with governments and civil-society organizations to address human-rights 
challenges for foreign migrant workers and how these workers can get access to grievance 
mechanisms and remedies.
NXP IN ACTION
SALIENT HUMAN-RIGHTS ISSUES: 2022 RESULTS
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ACRONYMS AND 
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INTEGRATE  
AND ACT
WE USE ASSESSMENT FINDINGS  
TO GUIDE OUR GROWTH
UNGP 19

UNGP 19
INTEGRATE AND ACT
POLICIES AND STANDARDS
NXP commits to the eight fundamental International Labour 
Organization (ILO) Conventions: 
1.	 Freedom of Association and Protection of the Right to 
Organize Convention, 1948 (No. 87)
2.	 Right to Organize and Collective Bargaining Convention, 
1949 (No. 98)
3.	 Forced Labor Convention, 1930 (No. 29) and its 
2014 Protocol
4.	 Abolition of Forced Labor Convention, 1957 (No. 105)
5.	 Minimum Age Convention, 1973 (No. 138)
6.	 Worst Forms of Child Labor Convention, 1999 (No. 182)
7.	 Equal Remuneration Convention, 1951 (No. 100)
8.	 Discrimination (Employment and Occupation) Convention, 
1958 (No. 111)
Additionally, NXP is committed to the guidelines and principles 
set out in the UN Guiding Principles on Business and Human 
Rights, the Universal Declaration of Human Rights (UDHR), the 
Organization for Economic Cooperation and Development 
(OECD) Guidelines for Multinational Enterprises, and the UN 
Global Compact. NXP policies and standards are either fully 
aligned with or more stringent than regulatory, industry-group, 
and customer requirements. We collaborate with external 
stakeholders, including industry associations, customers, 
NGOs, and government agencies, to support important social-
responsibility issues such as labor and human rights.
CODE OF CONDUCT
NXP’s Code of Conduct (the Code) sets out the principles that 
guide us as we work to fulfill our ambitions as a responsible 
and ethical company. It serves as a framework and details 
the behavior expected from every team member, director, 
contractor, or anyone else who works on behalf of NXP. The 
Code is available in 12 languages and can be found on  
www.NXP.com and the NXP intranet. 
SUPPLIER CODE OF CONDUCT
NXP places strict requirements on our supply chain. This is 
reflected in the NXP Supplier Code of Conduct, which is 
posted on the NXP website and available in seven languages. 
The Supplier Code of Conduct is reviewed annually, and had 
a major revision and update in 2021 in response to regulatory 
updates, customer requirements and expectations, industry 
best practices, and inputs from internal and supplier audits. 
The NXP Supplier Code of Conduct is owned by the 
Sustainability Office, approved by the ESG Management 
Board, and based on the NXP Code of Conduct, the 
Responsible Business Alliance's (RBA) Code of Conduct version 
7.0, the Universal Declaration of Human Rights (UDHR), UN 
Guiding Principles, the International Labour Organization 
(ILO) Declaration on Fundamental Principles and Rights 
at Work, the Organization for Economic Cooperation and 
Development (OECD) Guidelines for Multinational Enterprises, 
and guidelines from Social Accountability International (SAI), 
and the Ethical Trading Initiative (ETI). The NXP Supplier 
Code of Conduct also includes elements, modifications, and 
clarifications from audits conducted internally and externally, as 
well as the NXP Auditable Standards on Social Responsibility.  
HUMAN RIGHTS POLICY
Our new Human Rights Policy reaffirms our steadfast 
commitment to all international labor and human-rights laws 
and norms, along with the business practices and technologies 
that contribute to protecting and respecting human rights 
worldwide. This policy includes a stronger focus on our 
salient human-rights risks. The Policy was prepared by the 
NXP Sustainability Office under the supervision of the ESG 
Management Board, in consultation with external and internal 
stakeholders, and approved by the Board of Directors.
AUDITABLE STANDARDS ON  
SOCIAL RESPONSIBILITY 
NXP's Auditable Standards on Social Responsibility  
are approved by the ESG Management Board and specify 
minimum expectations for compliance with the NXP Code 
of Conduct and the Supplier Code of Conduct. The NXP 
Auditable Standards on Social Responsibility apply to NXP and 
all suppliers, contractors, onsite service providers, labor agents, 
and external manufacturers.
Our Auditable Standards on Social Responsibility and 
tools are developed with input from external stakeholders 
and are updated on a regular basis to reflect the latest 
recommendations and regulations on responsible  
business conduct. 
RESPONSIBLY SOURCED MINERALS POLICY
The trade of minerals in conflict and high-risk areas is often 
associated with increased violence and human-rights abuses. 
We are dedicated to ensuring that the minerals contained in 
our products are obtained, produced, and used in a socially 
responsible manner. 
Our Responsibly Sourced Minerals Policy aims to ethically 
obtain minerals from responsible suppliers to ensure that NXP’s 
supply chain does not contribute to human-rights abuses. 
Our program for responsibly sourcing minerals is designed 
in accordance with the OECD Due Diligence Guidance for 
Responsible Supply Chains of Minerals from Conflict-Affected 
and High-Risk Areas, and our suppliers must exercise due 
diligence according to OECD Guidance or a standard of  
similar caliber. 
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Governance
	
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Audits
	
Capacity Building and Training 
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ABBREVIATIONS

INTEGRATE AND ACT
INTERRELATIONSHIP OF POLICIES, STANDARDS, AND PRINCIPLES
SUSTAINABILITY POLICY
Responsibly Sourced  
Minerals Policy
Auditable Standards on  
Social Responsibility
Tools and Templates
ILO, OECD, UN, ISO, SA, RBA , ETI
NXP SUPPLIER CODE OF CONDUCT
EXTERNAL ACTIVITY
COMPANY ASSETS
EMPLOYMENT AT NXP
BUSINESS INTEGRITY
PERSONAL INTEGRITY
NXP CODE OF CONDUCT
HUMAN RIGHTS POLICY
Values and  
Ethics
Labor  
and Human 
Rights
Compliance
Products and  
Operations
Environment
Management 
System
Dialogue
Mitigating  
and Remediating 
Salient Human-
Rights Impacts
Communicating  
and Reporting
Human Rights  
and Employees
Health  
and Safety
Ethics
Local Initiatives
Human-Rights 
Due Diligence
Stakeholder 
Engagement  
and Dialogue
ASSISTANCE IN REPORTING
...
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GOVERNANCE
Integrating a governance structure and accountability for NXP and our supply chain keeps us 
accountable and focused on continuous improvement. 
NXP SOCIAL-RESPONSIBILITY GOVERNANCE STRUCTURE
Nominating, Governance, and Sustainability Committee of the Board of Directors
ESG Management Board
Sustainability Office
Social Responsibility Team
Manufacturing Site 
Steering Committee
Purchasing
Legal
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42

GOVERNANCE
GOVERNANCE RESPONSIBILITIES
NOMINATING, GOVERNANCE,  
AND SUSTAINABILITY COMMITTEE
ESG MANAGEMENT BOARD
SUSTAINABILITY OFFICE
MANUFACTURING SITE  
STEERING COMMITTEE
PURCHASING
LEGAL
SOCIAL RESPONSIBILITY TEAM
Oversee NXP’s policies and report on topics related to Environment, Social, and Governance (ESG). The committee receives quarterly 
updates from representatives of the ESG Management Board and, in turn, reports on these efforts in plenary meetings of NXP’s Board 
of Directors. 	
Lead the implementation of ESG strategy and policy and ensure appropriate resourcing. The ESG Management Board, comprised of 
Management Team members and other senior leaders, meets monthly to review our ESG performance against our strategy and goals. 
Set strategies, develop policies and goals while monitoring metrics, and, if needed, escalate issues to the ESG Management Board.	
Implement, measure, and validate policies, drive continuous onsite improvement, and report progress to site management and the 
Social Responsibility Team.	
Oversee the annual supplier risk assessment for social responsibility, meet monthly with the Social Responsibility Team to receive 
supplier performance data for input into quarterly supplier business reviews, and include the Material Sourcing Board when supplier 
escalations are needed. 	
Review and provide legislative guidance, assist in the review of alleged violations of the Code, and review publicly reported documents 
such as the Supplier Code of Conduct, the NXP Auditable Standards on Social Responsibility, and this Report.	
Oversee strategies, policies, and goals, and report on various metrics, including input from the Manufacturing Site Steering Committee 
and purchasing managers, and report monthly to the Sustainability Office. 	
NXP Operations 
Set targets, conduct annual self-assessments and third-party 
audits, ensure timely closure of corrective action plans, monitor 
and control working hours and rest days, and conduct internal 
capacity building.
Supply Chain 
Set targets, ensure supplier commitment to the Supplier Code 
of Conduct, conduct annual supplier risk assessments, supplier 
self-assessments, and audits, ensure timely closure of corrective 
action plans, and conduct supplier training. 

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GOVERNANCE
VALIDATION
Each year we report publicly on our supplier’s annual top 
audit nonconformances, and each month we report KPIs 
to the Sustainability Office on topics such as violations 
and nonconformances from our supplier audits, signed 
conformance letters, closure rate for corrective action 
plans, and quarter-on-quarter risk indicators within our 
supply chain. NXP monitors improvement by measuring the 
number of priority violations, repeat audits, frequency of 
nonconformances, and the nonconformance closure rate. 
Reports are reviewed frequently throughout the year by the 
ESG Management Board, which is composed of NXP executive 
and non-executive leadership. The ESG Management 
Board discusses the progress that has been made, areas 
for improvement, and new targets. Quarterly reviews are 
conducted with the Ethics Committee, and monthly reviews 
are conducted with the Quality Leadership Team. Monthly 
and sometimes weekly meetings are held with procurement 
managers to discuss the results of a supplier audit, the 
corrective action plan, and the supplier's progress toward 
closing out their nonconformances.
ACCOUNTABILITY
The Senior Director of the NXP Sustainability Office and the 
Social Responsibility Team are tasked with the delivery of the 
Corporate Social Responsibility and Human Rights Program 
across the business and in the global supply chain. This work is 
defined by clear targets and is part of a performance-appraisal 
system that links pay to performance and execution of the 
labor and human-rights commitments specified in our Code 
and Social Responsibility standards.
SUPPLY-CHAIN COMPLIANCE
NXP’s suppliers are required to comply with the NXP Supplier 
Code of Conduct and the associated NXP Auditable Standards 
on Social Responsibility, and the laws of the country or 
countries where they conduct business. In 2015, we included 
language in our supplier contracts that requires suppliers to 
abide by the NXP Supplier Code of Conduct. If there is not a 
contract in place, or because the contract was executed before 
2015, NXP requires a signed conformance statement, abiding 
by the NXP Supplier Code of Conduct. NXP's Legal and 
Purchasing Teams are trained on the policies and practices of 
the Supplier Code of Conduct.
Our goal is to collaborate with our suppliers and to make a 
positive impact on our supply chain. In the rare instance that 
a supplier is unable or unwilling to meet our requirements 
and work on a corrective action plan, we escalate the issue, 
according to management processes, to determine the status 
of our relationship with the supplier and may terminate the 
business relationship.  
RESPONSIBLE PROCUREMENT
Our master purchase agreements, as well as the terms and 
conditions of our purchase orders, require suppliers to certify 
their compliance with our policies. As an added incentive, 
our purchasing scorecards for major suppliers include 
measurements for social responsibility and tie performance on 
this issue to purchasing decisions. 
2022 HIGHLIGHTS
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ABBREVIATIONS
44

GOVERNANCE
RESPONSIBLE RECRUITMENT PRACTICES
NXP suppliers must have adequate and effective written 
recruitment and employment policies and procedures 
to ensure compliance with laws in sending and receiving 
countries. Responsible recruitment practices include: 
•	Suppliers must ensure workers are not required to pay  
fees, deposits, or have debt repayments for their 
recruitment or employment 
•	Suppliers must not require workers to participate in any 
form of forced savings or loan program where repayment 
terms are indicative of debt bondage or forced labor 
•	Suppliers must provide workers, prior to their departure  
or hiring, with accurate written details, in the workers' 
native language, about working conditions in the host 
country, including nature of work, wages, benefits, and 
duration of contract 
•	Suppliers must not require workers to surrender personal 
documents and ensure the same requirements are in place 
with their employment agencies 
•	Suppliers must ensure that workers are free to leave  
their employment upon giving reasonable notice,  
without penalty 
•	Suppliers must not place unreasonable restrictions on 
movement of workers and their access to basic liberties 
•	Suppliers must clearly communicate to their employees 
the NXP Supplier Code of Conduct or comparable 
requirements pertaining to the recruitment of workers and, 
if applicable, must regularly evaluate the employment 
agencies on their performance and conformance against 
these requirements
Of the thousands of people who work at NXP, a small 
percentage are foreign migrant workers. NXP is aware that 
using recruitment and labor agencies to hire foreign migrant 
workers increases the risk of forced labor, and therefore 
we prefer direct hiring where possible. We encourage our 
suppliers to go through the direct hiring route, too, if possible.
All labor agents acting on behalf of NXP must have a clear 
policy that adheres to the NXP Supplier Code of Conduct 
and must inform employees and their recruitment agencies 
about NXP’s policy at the point of recruitment and in their 
native language. To ensure compliance with NXP's Supplier 
Code of Conduct, labor agents acting on behalf of NXP must 
conduct due diligence with employment agencies, recruitment 
agencies, and sub-agents in their relevant countries  
of operation.
To ensure suppliers follow ethical guidelines when recruiting 
workers, NXP has adopted an Employer Pays policy. This 
policy is a clear contractual agreement with our supply chain, 
requiring that the supplier is responsible for payment of all 
recruitment fees and expenses. Such fees and expenses 
include, but are not limited to, expenses associated with 
recruitment, processing, or placement of workers.
The fight against modern slavery is also focused on impacting 
the lives of foreign migrant workers through our policies, 
standards, and recruiting practices. The positive impact of our 
Corporate Social Responsibility and Human Rights Program for 
NXP’s foreign migrant workers in Malaysia is highlighted in our 
documentary. Additional details on NXP’s efforts to investigate 
ethical recruitment practices are available in our documentary 
on ethical recruitment.
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ASSESSMENTS
We use due-diligence assessments to stay focused on continuous improvement, both internally 
and within our supply chain.
NXP ASSESSMENTS
The Social Responsibility Team conducts operational reviews with Human Resources to identify 
potential adverse human-rights impacts arising from our policies and business practices. At 
manufacturing sites, any issues identified by assessments are addressed in our operational-
review process. The manufacturing site identifies the corrective action and remediation plans and 
engages with the responsible departments to address the corrective and preventive actions.
When we established our Corporate Social Responsibility and Human Rights Program in 2013, 
we identified areas relating to human rights that offered opportunities for improvement. These 
included improving the recruitment, hiring, and management of foreign migrant workers at some 
of our manufacturing sites, improving the living conditions of worker dormitories by setting up 
clear dormitory standards, and enhancing worker-management dialogue and engagements. 
Since then, as our Program has matured, we have evolved our processes and practices and made 
progress in these areas. This does not mean that the effort is complete. Our work is ongoing, 
so we can identify areas where we can further strengthen our practices and performance. We 
continue to assess our manufacturing sites, using team-member engagement and management 
feedback to track our work and identify new issues, such as the impact of the COVID-19 
pandemic, as they arise.
Annual country risk assessments include a review of salient human-rights issues which 
incorporates local stakeholder feedback as well as published information from government and 
non-government sources. These salient topics are incorporated into the due-diligence process. 
The monitoring process seeks to uphold our policies, guidelines, and Auditable Standards on 
Social Responsibility, which are built around international standards for labor and human rights.
Our Code(s) of Conduct, policies, and standards serve to document the internal processes we 
use to protect labor and human rights. Consultation and engagement with external stakeholders 
allow NXP to understand various third-party information and expectations on where to apply 
more in-depth assessments, such as self-assessments and third-party audits. 
The RBA requires its member companies, including NXP, to complete the Self-Assessment 
Questionnaire (SAQ) in the RBA-Online platform on an annual basis. The RBA revises the SAQ 
annually, to reflect either changes to the RBA Code of Conduct and/or changes in the landscape 
for social responsibility and human rights.  
As part of their deployment of the RBA Code of Conduct in the supply chain, RBA member 
companies can require their suppliers to complete the SAQ. The SAQ is used as a risk-
assessment tool that helps member companies plan their supply-chain due diligence. The SAQ 
has a total score of 100% and the RBA classifies any facility that scores above 85% as low risk. All 
NXP manufacturing sites achieved a score of 90% or above.
80%
85%
90%
95%
100%
ATMC, Austin, TX, USA
Tianjin, Mainland China
Kuala Lumpur, Malaysia
Kaohsiung, Taiwan
Bangkok, Thailand
SSMC, Singapore
Oak Hill, Austin, TX, USA
NXP Target
RBA Target
Nijmegen, Netherlands
Chandler, AZ, USA
2015
2016
2017
2018
2019
2020
2022
2021
NXP's RBA SAQ Scores per Manufacturing Site
46 
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INTRODUCTION
LABOR AND HUMAN-
RIGHTS COMMITMENT
LOOKING FORWARD
CONCLUSION
HUMAN-RIGHTS  
DUE DILIGENCE
Identify and Assess 
Integrate and Act
	
Governance
	
Assessments
	
Audits
	
Capacity Building and Training 
Track 
Communicate
ACRONYMS AND 
ABBREVIATIONS

ASSESSMENTS
There are two areas where NXP has an RBA SAQ score classified as moderate risk:  
Environmental Risk and Health and Safety Risk. As a semiconductor manufacturer, we use certain 
equipment and controlled substances which affect the Environmental and Health and Safety 
Risk elements. However, NXP scores high across the Control and Management elements of 
the Environmental and the Health and Safety Risks, indicating that NXP has proper controls, 
protocols, and management systems in place to minimize the risks identified in these areas. 
SUPPLY-CHAIN ASSESSMENTS
As part of our annual risk-assessment analysis, we endeavor to assess all of our suppliers. 
Yearly risk assessments enable NXP to identify and monitor trends and developments 
relating to human rights, forced/bonded labor, the migrant worker index, fair wages, humane 
treatment, child labor, and/or health and safety, and help us highlight topics that may require a 
new or different approach. 
Given the scale of this annual effort, NXP partners with Verisk Maplecroft and our NGO 
partner, Verité, to identify potential issues relevant to our supply chains. This includes use of 
Verité's Cumulus Force Labor Screen risk-management system. 
ADVISORY FIRMS	
0%
20%
40%
60%
80%
100%
93%
97%
90%
81%
97%
99%
75%
100%
97%
97%
98%
95%
91%
Low Risk
Moderate Risk
High Risk
Labor Risk Elements
Labor Control Elements
Labor Management Systems
Environmental Risk Elements
Environmental Control Elements
Environmental Management Systems
Health and Safety Risk Elements
Health and Safety Control Elements
Health and Safety Management Systems
Ethics Risks Elements
Ethics Control Elements
Ethics Management Systems
2022 NXP's RBA SAQ Average Scores
VERITÉ
Cumulus Forced Labor Screen by Verité 
provides NXP with online technology 
to identify forced-labor and human-
trafficking risks of labor agents involved 
in the recruitment of migrant workers. 
Verité Cumulus also maps and assesses 
labor agents, in both the receiving and 
sending countries, along with their 
recruitment practices. 
VERISK MAPLECROFT
Verisk Maplecroft's database provides 
input that we use to screen our supply 
chain for inherent risk, and uses 
predictive models to evaluate areas 
such as forced labor, child labor, and 
working conditions. 
47 
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LOOKING FORWARD
CONCLUSION
HUMAN-RIGHTS  
DUE DILIGENCE
Identify and Assess 
Integrate and Act
	
Governance
	
Assessments
	
Audits
	
Capacity Building and Training 
Track 
Communicate
ACRONYMS AND 
ABBREVIATIONS

ASSESSMENTS
Risk Score = 
[(Country Risk) x (Product or Service) x (Spend)] x 100
1000
RISK ASSESSMENT
Our supplier risk assessment, developed jointly with our procurement and sustainability teams, 
is reviewed and updated to reflect changing perspectives in environment, labor, and human-
rights requirements. Our supplier risk assessment considers three risk criteria: country, product, 
and spend. Country Risk assesses countries, regions, and all other locations in which NXP has a 
footprint. Each criterion has a scale of one (lowest risk) to ten (highest risk). The overall supplier 
risk score is the product of the three individual scores, expressed as a percentage. A higher 
percentage implies a higher risk exposure.
COUNTRY RISK
The geographical location of a supplier is a key factor in determining risk level, as suppliers 
in countries with weak regulations, inadequate enforcement of labor rights, and/or ineffective 
business ethics and environmental laws tend to have higher risk exposure. Our Country Risk 
scores include specific indices, from our third-party partner, Maplecroft, which correlate to the 
NXP Supplier Code of Conduct and provide an overall weighted Country Risk score. Use of  
foreign migrant workers is also a critical element when it comes to labor risk. To account for 
this, the calculated Country Risk score may be increased by one level after a review by the 
Sustainability Team.
The table below presents the criteria used to assess country risk.
Maplecroft 
Report
Index
Definition
Relevant Topic in NXP 
Supplier Code of Conduct
Index Weighting
Human-Rights 
Risk Atlas
Labor Rights and 
Protection
Measures the risk of association with, and involvement in, violations of labor rights within  
a given country. Includes the following indicators: child labor, forced labor, trafficking,  
freedom of association, freedom of collective bargaining, discrimination in the workplace,  
and working conditions.
Labor and Health and Safety
60%
Legal and 
Regulatory 
Environment 
Risk Atlas
Corporate 
Governance
Quantifies the quality of corporate governance, based on the quality of existing legal structures, 
and the extent to which the law is enforced. Includes the following indicators: shareholder 
protection, ethical behavior of firms, strength of auditing and reporting standards, efficacy of 
corporate boards, and corruption-risk index.
Business Ethics
20%
Legal and 
Regulatory 
Environment 
Risk Atlas
Legal and 
Regulatory 
Environment
Identifies and monitors the strategic and operational risks presented by variations in  
regulatory and government policy, the costs associated with corruption, and lack of respect  
for the rule of law.
Governance
10%
Climate 
Change and 
Environmental 
Risk Atlas
Climate-Change 
Vulnerability
Evaluates vulnerability of populations to extreme, climate-related events, and changes in major 
climate parameters over the next 30 years.
Environment
10%
48 
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RIGHTS COMMITMENT
LOOKING FORWARD
CONCLUSION
HUMAN-RIGHTS  
DUE DILIGENCE
Identify and Assess 
Integrate and Act
	
Governance
	
Assessments
	
Audits
	
Capacity Building and Training 
Track 
Communicate
ACRONYMS AND 
ABBREVIATIONS

ASSESSMENTS
PRODUCT/SERVICE RISK
How close a supplier's materials or services are to our products influences the risk they 
represent in our value chain. External manufacturers pose the highest level of product risk to 
NXP. Material suppliers and manufacturing-service subcontractors pose the second-highest 
product risk.
The risk level for indirect-spend suppliers, which includes sourcing of all goods and services 
for NXP business and operations, such as equipment suppliers and indirect service providers, 
depends on the type of product or service provided. NXP groups suppliers based on the risk 
score, which we compile internally, using data from years of auditing, third-party guidance, 
benchmarking, and standards.
Category
Risk Score
External Manufacturing Suppliers (Foundry and Subcontractor)	
10
Category 1
7
Direct Material Suppliers
Warehousing
Logistics
HR-Related Services (Recruitment Agencies)
Construction and Renovation Services
Category 2
3
Capital Goods (Plant and Machinery)
Maintenance Repair and Operations
Category 3
1
Professional Services (Consultancy, Advisers)
IT-Related Services
Office Services (Telecommunications, Office Products)
Utilities (Gas, Electricity, Water)
Travel-Management Services
ON-SITE CONTRACTOR ASSESSMENT
Service providers and contractors who work on the premises are assigned a risk rating 
according to the type of service, as shown in the table below.
SPEND RISK
To assess business-criticality risk, we group suppliers into three categories based on annual 
spend: high risk (above $500,000 USD), medium risk ($100,000 USD to $500,000 USD), and 
low risk (under $100,000 USD). 
RESULTS
Suppliers undergo an annual supplier risk assessment. In 2022, 267 suppliers received a risk-
assessment score above 49%, indicating high or priority risk, and, as a result, may be required 
to complete an NXP Self-Assessment Questionnaire and/or participate in an audit.
Type of Service
Risk Score
Cafeteria, Cleaning, Employee Transportation, Security,  
Temporary Hire (Operators), Warehouse Services, Waste 
Management, Facility Management (Structural)
10
Other: Hardware Maintenance, IT, Onsite Service, Time Hire,  
Facility Management (Incidental)
1
POLY-SILICON SUPPLY CHAIN
NXP has initiated a due-diligence survey of our global suppliers of poly-silicon 
materials. The work is ongoing, but initial results indicate that our sourced poly-silicon 
materials are not affected. In designing this survey, we worked collaboratively with the 
Responsible Business Alliance (RBA) and shared our methodology and due-diligence 
results with them. Our work with the RBA has also confirmed our belief that obtaining 
a fully transparent view of the poly-silicon supply chain has been hampered by supplier 
concerns relating to trade secrets and competitively sensitive information. NXP is part of 
industry-wide efforts to improve transparency in the entire poly-silicon supply chain, and 
we're working to improve transparency within our own supply chain.
NXP IN ACTION
49 
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LABOR AND HUMAN-
RIGHTS COMMITMENT
LOOKING FORWARD
CONCLUSION
HUMAN-RIGHTS  
DUE DILIGENCE
Identify and Assess 
Integrate and Act
	
Governance
	
Assessments
	
Audits
	
Capacity Building and Training 
Track 
Communicate
ACRONYMS AND 
ABBREVIATIONS

AUDITS
We use audits to monitor compliance with our Corporate Social Responsibility requirements. 
Overall, management must demonstrate a good understanding and commitment to the 
NXP Code of Conduct (NXP manufacturing sites), the Supplier Code of Conduct (NXP 
manufacturing sites and our supply chain), and the NXP Auditable Standards on Social 
Responsibility. NXP requirements for ourselves and our supply chain must be integrated  
into policies and procedures, and must be communicated effectively to all team members  
and workers.
Nonconformances for internal and supplier audits are divided into three categories:
NXP MANUFACTURING-SITE AUDITS
Every two years, each manufacturing site undergoes a third-party audit. The audit is either 
conducted by Verité, using the NXP Auditable Standards on Social Responsibility, or by a 
designated audit firm that uses the RBA Validated Assessment Program (VAP), which is based 
on the RBA Code of Conduct. Each audit firm is specially trained in labor and human rights 
and performs on-site inspections (including any dormitories), reviews documents, and conducts 
private interviews with management and randomly selected team members. A formal report is 
issued, and any corrective actions are tracked until successfully closed.
RESULTS
When we developed our Corporate Social Responsibility and Human Rights Program, we 
engaged in many customer audits. Now that our Program has matured and we have our own 
internal evidence and historical data from customer audits, we can demonstrate that we are a 
low-risk supplier and, as a result, customers request fewer annual audits of our sites. 
Similarly, we initiated more third-party audits in the early years of our Corporate Social 
Responsibility and Human Rights Program, but the number has remained relatively steady 
since 2017, with the exception of 2018, when we merged with Freescale and applied our 
standards to their manufacturing sites.
Priority Violation
Confirmed evidence of 
human-rights abuses or 
unacceptable practices 
as defined by the NXP 
Auditable Standards on 
Social Responsibility. 
Such examples are the 
presence of forced/
bonded labor, child 
labor, serious instances 
of worker harassment, 
immediate risk to the 
life of workers, and/or 
negative impact to the 
environment. 
Major Nonconformance
A significant failure in 
the management system 
for social responsibility 
which affects the ability 
to produce the desired 
results. It may also be 
caused by failure to 
implement an established 
process/procedure, or by 
the fact that the process/
procedure is ineffective or 
not suited for the nature 
of the operation.
Minor Nonconformance
A failure that, by itself, 
does not indicate a 
systemic failure with the 
management system for 
social responsibility. It is 
typically an isolated or 
random incident. 
0
5
10
15
20
11
18
15
7
3
5
4
1
1
0
2014
2013
2015
2016
2017
2018
2019
2020
2021
2022
NXP Audits Requested by Customers
Audits by Requested Customers
NXP Internal Third-Party Audits
0
5
10
15
9
6
11
8
3
5
2
2
2
2
2014
2013
2015
2016
2017
2018
2019
2020
2021
2022
Internal Third-Party Audits
50 
2022 HIGHLIGHTS
INTRODUCTION
LABOR AND HUMAN-
RIGHTS COMMITMENT
LOOKING FORWARD
CONCLUSION
HUMAN-RIGHTS  
DUE DILIGENCE
Identify and Assess 
Integrate and Act
	
Governance
	
Assessments
	
Audits
	
Capacity Building and Training 
Track 
Communicate
ACRONYMS AND 
ABBREVIATIONS

AUDITS
SUPPLY-CHAIN AUDITS
NXP’s Corporate Social Responsibility and Human Rights 
Audit Program is a collaborative and consultative process 
aimed at guiding suppliers and ensuring they meet the NXP 
Supplier Code of Conduct as well as the requirements of the 
NXP Auditable Standards on Social Responsibility. The scope 
of the audit covers labor and human rights, environment, 
health and safety, business ethics, management systems, and 
compliance with the NXP Supplier Code of Conduct. These 
audits are conducted to determine and understand suppliers' 
maturity in managing social responsibility and how they can 
improve their processes and procedures in these areas. The 
audits are not intended to pass or fail a supplier, but rather 
to guide the supplier in a collaborative approach. The NXP 
Supplier Code of Conduct and the Auditable Standards apply 
to all NXP suppliers, contractors, onsite service providers, 
labor agents, and external manufacturers. 
NXP supplier audits analyze three main aspects of social 
responsibility: documentation reviews, management and 
private worker interviews, and physical inspection of all 
facilities, including any dormitories (onsite audit only). Audits 
also include interviews with labor agents and onsite service 
providers, such as janitorial, cafeteria, security, and other 
services. NXP's Corporate Social Responsibility and Human 
Rights Audit Program is conducted in accordance with a 
defined process flow illustrated on this page and  
described on the next.
Prepare and 
Finalize Audit 
Plan
Onsite Audit
Supplier  
Corrective  
Action Plan
Follow-Up  
(Re-Audit if 
Needed)
Annual Review
Pre-Audit Activities (Under 3 Months)
No
Yes
Supplier
Selection
Start
Training 
Required?
Training Needs
Analysis
Provide
Training
Supplier Self-
Assessment 
and 
Preparation  
for Audit
Supplier Risk 
Assessment
51 
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LOOKING FORWARD
CONCLUSION
HUMAN-RIGHTS  
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Identify and Assess 
Integrate and Act
	
Governance
	
Assessments
	
Audits
	
Capacity Building and Training 
Track 
Communicate
ACRONYMS AND 
ABBREVIATIONS

AUDITS
RISK ASSESSMENT 
The supplier-audit process starts with an annual NXP Supplier Risk Assessment to evaluate which 
suppliers have a high priority to be audited by NXP. 
TRAINING 
Once a supplier is selected for an audit, NXP consults with selected suppliers to determine if 
additional training is needed. 
SELF-ASSESSMENT 
The supplier then completes the NXP Supplier Self-Assessment and sends it back to NXP, 
including any applicable policies and documentation. 
ONSITE/REMOTE AUDIT 
The audit is led by a team of auditors from a third-party audit firm qualified by NXP and 
accompanied by an RBA-trained NXP auditor. Depending on the size and complexity of the 
supplier’s operations, a typical audit requires two or three full days (onsite audit), or about 18 
days (remote audit). 
CORRECTIVE ACTION PLAN 
If the audit yields a nonconformance, the supplier must submit a corrective action plan within 
two weeks of issuance of the final audit report. An effective corrective action plan includes 
remediation plans that fix the nonconformance and create a management system to prevent the 
issue from reoccurring. Audits use classifications for corrective action plans: priority violation, 
major nonconformance, and minor nonconformance. 
•	Priority violation – The supplier is given the opportunity to improve performance, but the 
response and resolution of the violation are non-negotiable. If there is immediate risk of 
life, the supplier has 24 hours to complete the corrective action. Otherwise, the supplier has 
seven days to submit a corrective action plan and 30 days to complete the plan. Unresolved 
priority violations may result in the withdrawal or termination of business.
•	Major and/or minor nonconformance – All corrective actions must be approved by NXP 
and, unless otherwise negotiated or approved, must be fully closed within 90 days. Within 
that 90-day period, the supplier must update NXP every 30 days. 
FOLLOW-UP 
NXP may conduct verification audits to assess whether a supplier has fully addressed all 
corrective and preventative actions. These audits are scheduled after corrective actions are 
submitted by the supplier and approved by NXP. 
ANNUAL REVIEW 
Upon completion of the annual audit cycle, NXP conducts a review to determine if any suppliers 
that were audited in the preceding year will be required to be re-audited, based on the severity 
of the previous audit results. 
This video has more about our Social Responsibility Audit.
TRAINING
Training focuses on our suppliers and their onsite service providers. The mode of training can 
be a one-to-one consultation training, a two-hour classroom training, or a webinar session 
conducted by the NXP Social Responsibility Team with support from the site's subject-matter 
experts. The training is the full requirement of the NXP Supplier Code of Conduct. Supplier 
training is done: 
•	Before a supplier’s upcoming NXP Social Responsibility Audit
•	During the closure timeline of the supplier’s corrective action plan 
•	When a supplier requests training 
Coaching the supplier on best practices and providing RBA’s e-learning academy are also part of 
our supplier trainings.
52 
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INTRODUCTION
LABOR AND HUMAN-
RIGHTS COMMITMENT
LOOKING FORWARD
CONCLUSION
HUMAN-RIGHTS  
DUE DILIGENCE
Identify and Assess 
Integrate and Act
	
Governance
	
Assessments
	
Audits
	
Capacity Building and Training 
Track 
Communicate
ACRONYMS AND 
ABBREVIATIONS
52

AUDITS
Pre-Assessment Meeting
Technical Rehearsal
Audit Proper
Validate Facility Information
Detailed Agenda
Opening Meeting
Remote Audit Process, 
Timeline, and Expected 
Deliverables
Test Software, Hardware,  
and Audio
Documents Review
Audit Scope
Video Devices
Management Interview
Identification of Auditee 
Resource Personnel
Align Video-Conferencing 
with File-Sharing Platform
Gathering Information  
from Workers
Overview of Technical 
Requirements
Employee Roster
Closing Meeting
Overview of Document 
Review Process
Confidentiality and Data-
Privacy Concerns
REMOTE AUDITS
Before the COVID-19 pandemic, we typically conducted an average of up to 20 onsite audits  
per year. We are pleased to report that, as COVID-19 pandemic controls have eased and borders 
reopened, we have started increasing the number of onsite audits and are closer to our pre-
pandemic averages. In 2022, we managed to conduct 14 audits, using a combination of formats, 
including onsite and remote audits. We conducted more onsite audits in 2022 than in 2021, and 
conducted only two remote audits in 2022. We also worked with our third-party auditing firm, 
Verité, to develop a new protocol for remote audits, so we could continue our due-diligence 
work with suppliers.
Under normal circumstances, a typical onsite audit takes only two or three days to complete. 
Remote audits, however, are significantly more complex, and are usually spread over an 18-day 
period that includes pre-assessment meetings, technical rehearsals, and the audit proper. Most 
of that time is spent on pre-audit preparations and desktop document reviews. 
During the pre-assessment period, the Audit Team and the supplier hold videoconference 
calls to validate collected information, agree on a timeline, discuss confidentiality, and address 
data-privacy concerns. Technical rehearsals serve to confirm that the supplier has access to 
the videoconferencing platform selected for the audit, and that interview sessions, held with 
randomly selected workers, will take place in a location with adequate privacy. During the audit 
proper, the Audit Team conducts the actual interviews with supplier management and workers, 
and reviews any documents and data, such as employee personnel files and pay slips, that can’t 
be shared in advance.
LIMITATIONS OF REMOTE AUDITS
Remote audits have given us a way to perform due diligence during the COVID-19 pandemic, 
but they are only a temporary solution, not suited for long-term replacement of onsite audits,  
for several reasons. To begin with, remote audits are limited in scope, focusing primarily on labor, 
human rights, and ethics. They leave out the assessment of environment, health, and safety 
(EHS) concerns, since extensive facility inspections aren’t feasible with a remote process. Also, 
certain documents cannot be shared in advance, and screen sharing makes it difficult to review 
data and records effectively. What’s more, it’s easier, during an in-person interview, to keep 
people engaged, ask follow-up questions, and observe body language and facial expressions.  
We do see remote audits as a useful tool for follow-up or verification audits with suppliers who 
performed well in their initial audit, and as a good alternative for suppliers who already have a 
mature and strong social-responsibility program in place. 
ONSITE AUDITS
Onsite audits of our suppliers can be announced or unannounced, conducted by an approved 
third-party audit firm, and accompanied, at a minimum, by an NXP-certified RBA Lead Auditor.  
It is NXP’s principle to understand the issues that arise during an audit, verify that the audit  
is conducted per the NXP Auditable Standards, and provide consultation if the supplier  
has challenges. 
RBA VALIDATED ASSESSMENT PROGRAM (VAP) AUDITS
As a member of the RBA, NXP has at its disposal tools and programs initiated by the RBA, 
including the Validated Assessment Program (VAP). The VAP is similar to NXP's onsite audit 
protocol, but with the RBA Code of Conduct as the audit criteria. VAP audits evaluate the social, 
ethical, health-and-safety, and environmental performance of RBA members and their supply 
chain as measured against their audit criteria. 
53 
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LABOR AND HUMAN-
RIGHTS COMMITMENT
LOOKING FORWARD
CONCLUSION
HUMAN-RIGHTS  
DUE DILIGENCE
Identify and Assess 
Integrate and Act
	
Governance
	
Assessments
	
Audits
	
Capacity Building and Training 
Track 
Communicate
ACRONYMS AND 
ABBREVIATIONS

1 RBA-Online is an online sustainability data-management system designed to help RBA members and their suppliers manage and share 
information from audits and self-assessment questionnaires at the corporate, facility, and supplier levels.
In 2021, we extended our Audit Program by incorporating two RBA VAP audits at two of our 
suppliers who have demonstrated maturity in their social-responsibility performance. Moving 
forward, NXP will look to employ RBA VAP audits at more of our mature suppliers. More details 
of the RBA VAP protocols can be found here.
The goal of the VAP is to help streamline a process that has frequently resulted in audit fatigue 
for suppliers subjected to multiple, similar audits by industry members. A VAP audit may be 
initiated by any RBA member, and audit results are available to any other member company 
working with that supplier. Report sharing is predicated on a Trading Relationship, between the 
member company and the audited supplier, in the RBA-Online system1. It is the responsibility 
of the member company initiating the VAP audit to review, approve, and verify corrective 
actions from the audit.
RESULTS
NXP works collaboratively with suppliers to help them achieve and maintain our standards and 
expectations. Our preference is to work with suppliers to address potential deficiencies by 
helping them develop and implement a corrective action plan. 
In 2022, the 14 supplier audits we completed identified a total of 710 nonconformances. Of 
those nonconformances, 530 reached the 90-day maturity mark. We closed 466 of those 530 
nonconformances, yielding a closure rate of 88% for audits at or beyond the 90-day mark, and 
exceeding our goal of an 85% closure rate. We did not terminate business with any of these 
suppliers, in light of their willingness to take the steps needed to close their corrective and 
preventative action plans. 
The number of nonconformances increased because we conducted more audits in 2022 
compared to 2021, but also because our audits focused on high-priority suppliers that we 
knew were having challenges conforming to our requirements. We engaged actively with our 
suppliers to understand how the COVID-19 pandemic and post-pandemic challenges impacted 
their businesses and the well-being of their employees. 
Using data obtained from the supply-chain pulse survey, conducted at the onset of the 
COVID-19 pandemic in 2020, we continued to engage, through our due-diligence audit 
program, with those suppliers whose survey answers suggested business impact from the 
COVID-19 pandemic. To read more about our 2022 audit findings, see the "Track" section of 
the "Human-Rights Due Diligence" chapter.
AUDITS
54 
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INTRODUCTION
LABOR AND HUMAN-
RIGHTS COMMITMENT
LOOKING FORWARD
CONCLUSION
HUMAN-RIGHTS  
DUE DILIGENCE
Identify and Assess 
Integrate and Act
	
Governance
	
Assessments
	
Audits
	
Capacity Building and Training 
Track 
Communicate
ACRONYMS AND 
ABBREVIATIONS

CAPACITY BUILDING AND TRAINING
Everyday decisions can have a negative impact on human rights, and that means every  
team member at NXP or in our supply chain has a role to play in ensuring we maintain a 
positive impact. 
We understand the importance of team-member awareness, and use capacity building and 
training to help identify issues early and find better ways to drive changes in practice and 
culture. We also use capacity building to strengthen our internal organization and increase 
internal knowledge, to ensure smooth implementation and maintenance of our Corporate 
Social Responsibility and Human Rights Program. 
We use training in our supply chain to increase awareness of our Program and help suppliers 
understand and comply with our expectations.  
NXP CAPACITY BUILDING
The purpose of our detailed capacity-building program is to make sure our manufacturing sites 
can recognize the signs of modern-day slavery for early intervention and a quick response. 
We educate our team members, so they are aware of labor and human-rights issues, with a 
particular focus on team members whose job functions include purchasing, to understand 
compliance with applicable laws and standards.
Since 2013, NXP has trained over 1,000 key team members on labor and human-rights topics 
and 120 team members have been certified as RBA-VAP lead auditors. Each lead auditor 
plays an important role in the deployment and implementation of the Corporate Social 
Responsibility and Human Rights Program at their respective manufacturing site.
The RBA-VAP course for lead auditors, conducted by Verité, is a five-day workshop that covers 
auditing of social systems, investigative skills, and management systems for Labor and Ethics 
components. At the end of the course, each student takes a two-hour written exam, scored 
by Verité and sent for final verification to International Register of Certificated Auditors (IRCA). 
Successful completion of this course fulfills the requirement of IRCA for labor and ethics 
auditors for the RBA auditing program.
Human-Rights Capacity Building	
Group
Training Received
Executive Management Team
Requirements of NXP policies, codes, and standards  
with the expectation that they will support the  
Program by approving/providing the resources  
necessary for its success
Manufacturing Management Team
Requirements for facilitating and implementing the 
standards at a manufacturing site, and how they  
can provide the necessary resources to sustain 
continuous improvement
Manufacturing Site Social 
Responsibility Team
In-depth specifics for implementing the Program  
and standards at their manufacturing site, and how,  
as individuals, they can support the effort in their 
respective functional area
Manufacturing Subject  
Matter Experts
RBA lead-auditor training and certification, emphasizing 
labor and ethics, so they can guide the site's Social 
Responsibility Team 
Our Corporate Social Responsibility and Human Rights Program capacity building addresses the 
four groups shown below.
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CONCLUSION
HUMAN-RIGHTS  
DUE DILIGENCE
Identify and Assess 
Integrate and Act
	
Governance
	
Assessments
	
Audits
	
Capacity Building and Training 
Track 
Communicate
ACRONYMS AND 
ABBREVIATIONS
55

CAPACITY BUILDING AND TRAINING
The capacity-building program is updated whenever there is a revision to the Auditable 
Standards on Social Responsibility. The Auditable Standards on Social Responsibility are 
reviewed on an annual basis to identify any need for revisions based on changes in the 
regulatory landscape, industry best practices, or customer requirements and expectations.  
In 2021, the Auditable Standards on Social Responsibility went through a thorough revision  
to align with the requirements of the revised RBA Code of Conduct version 7.0.  
TRAINING ON GRIEVANCE MECHANISMS
All NXP team members and interns are required to complete NXP's Code of Conduct training, 
which provides guidance and processes that team members and third parties can use to report 
potential violations of our Code, including anonymous reporting via a third-party hotline.  
TRAINING FOREIGN MIGRANT WORKERS
We randomly interview foreign migrant workers before they leave their home country to  
ensure they were recruited ethically, and in compliance with NXP policies. The recruitment 
process must meet NXP’s stringent requirements, meaning workers must be informed of 
grievance mechanisms and the grievance process must reflect NXP's zero-tolerance policy 
against retaliation. 
Upon arrival at NXP, all workers (foreign migrant workers and team members) go through an 
on-boarding process that includes training on NXP's policies and programs for labor and human 
rights, with topics such as workers’ rights and responsibilities, contract terms, the no-fee policy, 
control of personal identification documents, appropriate working conditions, how to read and 
understand details of a pay slip, working hours, housing conditions (if applicable), how to report 
illegal practices and abuse, and protections for workers who report potential violations. 
56 
SUPPLY-CHAIN TRAINING
We train our suppliers so they know what to expect during an NXP audit. Training is conducted 
by the NXP Social Responsibility Team, with support from Verité. NXP provides tools and 
resources to support our suppliers in building and/or improving their social-responsibility 
programs to explicitly commit to the ILO Core Labor Standards. Training addresses our suppliers 
and labor agents in sending and receiving countries, as well as onsite service providers.
Training covers the entire NXP Supplier Code of Conduct, with special attention paid to 
labor and human rights. NXP provides guidance, consultation, and best practices to suppliers 
implementing the standards. Training is conducted either in a classroom or using a webinar 
session, and we provide access to the RBA's e-learning academy. Supplier training can be done 
before a supplier’s upcoming NXP social responsibility audit, during the closure timeline of a 
supplier’s corrective action plan, or whenever a supplier requests it. 
To address nonconformances from our supplier audits, NXP conducts consultation sessions  
with our auditees and holds 30-, 60-, and 90-day follow-up meetings to discuss corrective  
action plans and provide additional training on our standards. We are committed to  
remedying any adverse impacts on workers and to working with our supply chain to  
successfully address nonconformances.
INCREASED CAPACITY-BUILDING ACTIVITIES
In 2022, after a suspension of two years due to the COVID-19 pandemic, we restarted 
capacity-building activities with our supply-chain partners. In Malaysia, for example, we 
provided in-person training to 152 suppliers, covering the requirements of NXP's Supplier 
Code of Conduct and recommendations on how to comply with those requirements. The 
training program also gave us a way to get feedback from suppliers about their concerns 
and challenges.
Our capacity-building activities also included our internal Procurement Team. We 
conducted a virtual training session for 50 team members, covering the requirements of 
NXP's Supplier Code of Conduct, our Corporate Social Responsibility and Human Rights 
Audit Program in the supply chain, and our requirements for restricted substances and 
responsible minerals.
NXP IN ACTION
56 
2022 HIGHLIGHTS
INTRODUCTION
LABOR AND HUMAN-
RIGHTS COMMITMENT
LOOKING FORWARD
CONCLUSION
HUMAN-RIGHTS  
DUE DILIGENCE
Identify and Assess 
Integrate and Act
	
Governance
	
Assessments
	
Audits
	
Capacity Building and Training 
Track 
Communicate
ACRONYMS AND 
ABBREVIATIONS

TRACK
WE GAUGE PROGRESS BY MONITORING  
OUR ACTIONS AND RESPONSES
UNGP 20

TRACK
UNGP 20
The Social Responsibility Team tracks internal and supplier audits to verify that the outcome and results are aligned with NXP's Code(s) of Conduct and standards. We use internal 
and supplier audits to track nonconformances and verify that our requirements are integrated into codes and procedures, and communicated effectively to all levels of workers.
Using data from successive years of auditing, we can track performance for internal operations and within our supply chain, and thereby measure the progress of our efforts in 
human-rights due diligence.
NXP
SUPPLY CHAIN
NXP Social-Responsibility Performance
Goals
2022 Results
No Priority or Major 
Nonconformances from Internal/
Customer Audits
We completed RBA VAP verification audits at our Bangkok 
and Kaohsiung manufacturing sites. All corrective and 
preventive actions from the initial RBA VAP audits in 2021 
were closed. There were no customer audits in 2022.
Internal NXP Audit Scores >95%
Our >95% goal is based on NXP's audit scoring criteria. 
Since the RBA VAP methodology for audit scoring  
is different than NXP's methodology, we are currently 
mapping the two for a thorough representation of  
the results. 
Self-Assessment Scores >90%
All NXP sites achieved self-assessment scores above 90%. 
Work Week of <60 Hours and 
One Rest Day per Six Days 
Worked
At one site, the 60-hour working limit was exceeded for 
approximately 900 workers, or 30% of the site's direct-
labor workforce, for a period of one week. This was due 
to the continued labor shortage, challenges in hiring 
foreign migrant workers, and a border closure during a 
significant increase in production demand. The site was 
able to resolve the issue quickly by efficiently allocating the 
workforce to support production. 
Supplier Social-Responsibility Performance	
Goals
2022 Results
100% of Key Suppliers Sign 
Supplier Code of Conduct 
Conformity Statement
99% of Suppliers Signed the NXP Supplier Code of 
Conduct Conformity Statement
85% Closure  
Rate for Corrective Action Plans
88% Closure Rate on Corrective Action Plans for Supplier 
Audits Past 90-Day Maturity
100% Certified Mineral Smelters
100% Certified Mineral Smelters2
Supply-Chain Due Diligence and 
Collaboration
Follow-Up Due-Diligence Surveys with External 
Manufacturing Partners and Wafer Suppliers on the Use of 
Polycrystalline Silicon Originating from Regions Deemed 
High Risk for Forced Labor
2 This data point is reported annually, but primarily reflects 2022 calendar-year data to align with our 2023 Conflict Minerals Specialized 
Disclosure Form (Form SD) and Conflict Minerals Reporting Template (CMRT) filing.
58 
2022 HIGHLIGHTS
INTRODUCTION
LABOR AND HUMAN-
RIGHTS COMMITMENT
HUMAN-RIGHTS  
DUE DILIGENCE
Identify and Assess 
Integrate and Act 
Track 
Communicate
LOOKING FORWARD
CONCLUSION
ACRONYMS AND 
ABBREVIATIONS

TRACK
Since 2013, NXP has conducted social-responsibility audits in our supply chain. Each year's 
data is integrated into our assessments and helps us fine-tune our due-diligence process by 
highlighting salient human-rights risks per country and region. Each country/region has a Top 10 
category associated with it so we can determine where to focus our human-rights due-diligence 
efforts in the coming year. The data also supplements each country/region's human-rights risk 
criteria in our supply-chain risk assessment.
STEP ONE – IDENTIFY HIGH-RISK SUPPLIERS
We annually conduct a supplier risk assessment to determine our audit schedule for high-
risk suppliers. Risk is calculated according to three scoring categories – country, product, 
and spend risks – which assigns a risk factor as either <50% (medium risk), 50% – 70% (high 
risk), or 71% – 100% (priority risk). In 2022, we assessed 6,437 suppliers and identified 130 
medium-risk suppliers, 118 high-risk suppliers, and 19 priority-risk suppliers. The 2022 
supplier risk assessment identified priority-risk suppliers in two countries/regions, Mainland 
China and Malaysia. 
0%
25%
50%
75%
100%
Portugal
Philippines
Thailand
USA
Japan
Korea
Mainland China
Malaysia
Singapore
Taiwan
<50%: Medium-Risk Score
50% – 70%: High-Risk Score
71% – 100%: Priority-Risk Score
25.4%
13.8%
2.3%
1.5%
13.8%
28.5%
3.8%
10.0%
0.8%
19.5%
31.6%
68.4%
6.8%
23.7%
40.7%
5.1%
1.7%
2.5%
2022 Medium-, High-, and Priority-Risk Suppliers by Country 
and Region from Annual Risk Assessment
Top 10 Findings by Country and Region (2013-2022)
Working Hours
Wages and Benefits
Sanitation, Food, and Housing
Protection of Identity 
and Non-Retaliation
Occupational Safety
Occupational Injury and Illness
Humane Treatment
Freely Chosen Employment
Emergency Preparedness
Child-Labor Avoidance 
and Young Workers
0%
20%
40%
60%
80%
100%
US
UK
Thailand
Taiwan
South Korea
Singapore
Philippines
Netherlands
Malaysia
Japan
Indonesia
Hong Kong
Germany
Mainland China
8.6%
13.6%
16.7%
25.0%
100%
13.6%
6.9%
7.3%
12.9%
20.2%
7.1%
13.1%
6.1%
12.5%
12.5%
25.0%
12.0%
24.0%
12.0%
4.0%
12.0%
36.0%
12.5%
12.5%
25.0%
17.8%
9.5%
9.5%
13.2%
16.3%
9.5%
3.4%
6.7%
8.0%
6.1%
28.6%
2.8%
11.0%
7.4%
7.5%
10.1%
6.7%
6.7%
9.5%
9.5%
7.1%
10.7%
3.6%
13.1%
9.5%
9.5%
14.3%
24.5%
7.5%
4.1%
2.7%
4.1%
10.9%
12.2%
6.8%
15.3%
14.6%
6.6%
11.7%
9.1%
7.3%
3.6%
5.1%
13.1%
15.3%
50.0%
50.0%
10.6%
22.7%
10.6%
4.9%
6.7%
7.2%
7.2%
11.1%
12.2%
16.7%
15.2%
6.8%
6.8%
9.8%
5.3%
4.5%
12.9%
8.3%
8.3%
16.7%
16.7%
8.3%
16.7%
8.3%
15.2%
6.8%
6.8%
9.8%
5.3%
9%
4.5%
12.9%
8.3%
12.9%
9.2%
8.3%
11.9%
8.8%
6.8%
7.2%
10.1%
16.2%
59 
2022 HIGHLIGHTS
INTRODUCTION
LABOR AND HUMAN-
RIGHTS COMMITMENT
HUMAN-RIGHTS  
DUE DILIGENCE
Identify and Assess 
Integrate and Act 
Track 
Communicate
LOOKING FORWARD
CONCLUSION
ACRONYMS AND 
ABBREVIATIONS

TRACK
STEP TWO – CONDUCT A SUPPLIER AUDIT
Since 2013, when we began our Corporate Social Responsibility and Human Rights Audit 
Program, we have conducted 184 supplier audits. That includes labor-agent audits as well as 
verification audits, which began in 2014.
In 2022, we conducted 12 announced onsite audits and two remote audits for suppliers 
located in Mainland China, Malaysia, Taiwan, and Thailand.
In addition to the 14 supplier audits we conducted ourselves, we reviewed and monitored 15 
RBA VAP audits initiated by other RBA members with the same supply base.
0
5
10
15
20
25
New Audits
Verification/Closure Audits
2014
2013
2015
2016
2017
2018
2019
2020
2021
2022
14
6
21
9
17
19
16
15
13
4
New Supplier Audits and Veriﬁcation Audits
Number of Audits
0%
25%
50%
75%
100%
Hong Kong
Thailand
Indonesia
South Korea
Philippines
Malaysia
Singapore
Japan
Mainland China
Taiwan
2014
2013
2015
2016
2017
2018
2019
2020
2022
2021
3%
7%
48%
24%
10%
7%
5%
48%
24%
10%
14%
15%
46%
23%
8%
8%
64%
14%
7%
14%
50%
13%
38%
25%
25%
25%
25%
11%
56%
11%
22%
18%
18%
24%
35%
6%
12%
24%
24%
6%
12%
18%
6%
20%
13%
20%
7%
27%
7%
7%
Supplier Audits by Country and Region
 
During an audit, worker interviews are conducted in private and at random. To determine the 
number of worker interviews to be conducted, we take the square root of the worker population. 
In 2022, 402 random worker interviews were conducted, involving 51% men and 49% women 
with varying lengths of service and age range. 
60 
2022 HIGHLIGHTS
INTRODUCTION
LABOR AND HUMAN-
RIGHTS COMMITMENT
HUMAN-RIGHTS  
DUE DILIGENCE
Identify and Assess 
Integrate and Act 
Track 
Communicate
LOOKING FORWARD
CONCLUSION
ACRONYMS AND 
ABBREVIATIONS

TRACK
STEP THREE – ANALYZE RESULTS OF SUPPLIER AUDIT
Audits conducted in 2022 addressed a selection of high-priority suppliers who had previously 
been audited to a social-responsibility standard. We chose to re-audit these suppliers to see 
if NXP's Corporate Social Responsibility and Human Rights Program has enhanced social-
responsibility performance and improved working conditions for their workers. At three of  
the five suppliers we had previously audited, we noted a maturity in social-responsibility 
practices and found they had improved on their previous performance. We will continue to 
work with our suppliers as they implement our standards into their business practices and 
management systems. 
 
Two ratios – the number of nonconformances identified compared to the number of audits 
conducted, and the number of priority violations identified compared to the number of audits 
conducted – are higher in 2022 than in 2021. There are several reasons for this. To begin with, 
we conducted more audits in 2022, and this tends to increase the number of nonconformances 
we find. Also, our 2022 audits included a number of high-priority suppliers that we knew were 
facing challenges due to the COVID-19 pandemic. We based our selection, in part, on our 2020 
supplier pulse survey, which was conducted during what proved to be the most challenging 
phase of the COVID-19 pandemic.
0
200
400
600
800
1,000
Priority
Minor
Major
2014
2013
2015
2016
2017
2018
2019
2020
2022
2021
555
322
35
489
248
42
473
228
53
336
191
34
388
105
12
314
246
13
148
204
12
76
69
5
332
345
33
80
75
5
Number of Nonconformances by Rating
0
10
20
30
40
50
60
70
2013
2014
2015
2016
2017
2018
2019
2020
2022
2021
Total Number of Priority Violations per Total Number of Audits
Total Number of Nonconformance per Total Number of Audits
35
56
1
1
2
43
2
29
1
23
1
26
1
21
1
38
1
2
27
51
Number of Nonconformances per Number of Audits
61 
2022 HIGHLIGHTS
INTRODUCTION
LABOR AND HUMAN-
RIGHTS COMMITMENT
HUMAN-RIGHTS  
DUE DILIGENCE
Identify and Assess 
Integrate and Act 
Track 
Communicate
LOOKING FORWARD
CONCLUSION
ACRONYMS AND 
ABBREVIATIONS

Calculating nonconformances using our five categories of standards helps us to identify 
trends, provide a strategic focus, and adjust our engagement plan to continue improving 
our supply chain. 
With the shift back to mostly onsite audits, we are better able to identify gaps and 
nonconformances that are harder to identify with remote audits. While two categories – 
Labor and Human Rights and Health and Safety – continue to dominate our findings, onsite 
audits have made it easier to observe and assess actual practices, and this has lead to an 
uptick in Health and Safety nonconformances. In addition, being able to engage with and 
interview workers, face-to-face, allows us to better assess their well-being. 
0%
25%
50%
75%
100%
General
Environment
Ethics
Management Systems
Health and Safety
Labor and Human Rights
2014
2013
2016
2015
2017
2018
2019
2020
2022
2021
22%
33%
22%
15%
6%
2%
35%
22%
19%
17%
5%
1%
20%
37%
21%
16%
4%
1%
16%
45%
19%
12%
7%
1%
6%
2%
19%
38%
21%
13%
20%
39%
21%
13%
5%
2%
19%
37%
28%
7%
8%
1%
21%
44%
18%
14%
1%
2%
18%
36%
25%
14%
1%
7%
28%
49%
11%
6%
1%
6%
Nonconformances by Category
Identifying the total number of nonconformances per country/region helps the Audit Team 
determine country risks, complete the annual assessment of supplier risk, and strategize the 
priorities of future audit planning. In 2022, we focused our supply-chain audits on Malaysia, 
because we anticipated that tight COVID-19 pandemic restrictions would impact the 
businesses and operations of that country/region's suppliers and their workers. 
0
100
200
300
400
500
Mainland China
Malaysia
Thailand
Taiwan
Priority 
Minor
Major
12
16
2
36
61
1
42
64
2
242
204
28
2022 Nonconformances by Country and Region
TRACK
62 
2022 HIGHLIGHTS
INTRODUCTION
LABOR AND HUMAN-
RIGHTS COMMITMENT
HUMAN-RIGHTS  
DUE DILIGENCE
Identify and Assess 
Integrate and Act 
Track 
Communicate
LOOKING FORWARD
CONCLUSION
ACRONYMS AND 
ABBREVIATIONS

TRACK
After ten years of auditing our supply chain, and identifying more than 5,000 nonconformances, 
we target the top five as illustrated below. Although 2022 included two remote audits and 
did not evaluate all five categories, Freely Chosen Employment is still the most frequently 
reoccurring nonconformance.
The 14 audits conducted in 2022 uncovered 33 priority violations.
Priority Violations by Category
2022
No Fees
9
Working Hours
9
Rest Days
4
Adequate Personal Protective Equipment (PPE) Provided
3
Legal Benefits
3
Retention of Workers' Original Documents
3
Emergency Access
2
In 2022, the top three categories of priority findings were No Fees, Working Hours,  
and Rest Days.
•	No Fees – We identified nine priority violations on No Fees and their related findings, for 
foreign migrant workers hired at five suppliers in Malaysia. The workers paid recruitment 
fees and had their wages deducted to repay any debts owed to labor agencies for advances 
on these fees.
•	Working Hours – There were nine priority findings for Working Hours, identified in Malaysia 
(six), Mainland China (one), Taiwan (one), and Thailand (one), where workers were found to 
have worked more than 60 hours per week, including overtime work. 
•	Rest Days – The four priority findings for Rest Days were identified at three suppliers in 
Malaysia and one in Mainland China. Workers in these facilities did not have a rest day after 
six consecutive days of work. 
0%
2%
4%
6%
8%
10%
12%
Freely Chosen
Employment
Emergency
Preparedness
Working Hours
Wages and
Benefits
Humane
Treatment
10%
7%
6%
5%
5%
Top Five Nonconformances by Category (2013-2022)
63 
2022 HIGHLIGHTS
INTRODUCTION
LABOR AND HUMAN-
RIGHTS COMMITMENT
HUMAN-RIGHTS  
DUE DILIGENCE
Identify and Assess 
Integrate and Act 
Track 
Communicate
LOOKING FORWARD
CONCLUSION
ACRONYMS AND 
ABBREVIATIONS
63

AUDIT CLOSURE RATE
In 2018, we set a goal to close 80% of our supplier nonconformances within a 90-day timeframe. 
In 2021, we set a new goal at an 85% closure rate. We chose this 5% increase after reviewing 
improvements in closure-rate performance from audits performed in 2019 and 2020. We 
continue to provide a 15% threshold since we understand that some corrective actions, such as 
monetary investments and COVID-19 pandemic-related labor shortages, which impact working 
hours, typically require more than 90 days to close. 
In 2013, when we began auditing suppliers, our closure rate was around 40%. Through 
continuous collaboration with our suppliers, our closure rate has continued to increase or  
remain high year over year. 
The closure rate for 2022 was 88%, compared to 89% in 2021. The lower closure rate is largely 
due to the fact that we conducted nearly twice as many audits in 2022. The lower rate can also 
be attributed to increased strain on the supply chain during the pandemic, and the production 
ramp-up to overcome the semiconductor shortage. These overlapping trends created ongoing 
challenges at our suppliers, in terms of working hours and labor supply, in 2022. In particular, the 
labor supply had more nonconformances relating to recruitment practices, including recruitment 
fees being charged to workers – especially foreign migrant workers – and the retention of 
workers’ personal documents. These types of audit findings require more time to investigate, 
since we need to determine the actual amount of recruitment fees charged to workers and the 
amount suppliers will reimburse to affected workers. 
TRACK
While it is our stated goal to achieve the targeted closure rate, indicated by the dotted 
line, ultimately we aim for 100% closure on all audit nonconformances found within the 
calendar year. We continue to work with audited suppliers to fully close the remaining 
nonconformances in the subsequent year. As of this reporting, we have closed the one 
remaining finding from 2019, and have five open nonconformances, associated with one 
supplier, from the initial audit in 2020 that carried over to 2021. We continue to work with that 
supplier to close all five open nonconformances, and the supplier has continued to provide 
updates on their progress and challenges.
3 In 2022, the 14 supplier audits we completed identified a total of 710 nonconformances. Of those nonconformances, 530 reached 
the 90-day maturity mark at the time of data collection for the 2022 Corporate Sustainability Report. We closed 466 of those 530 
nonconformances, yielding the closure rate of 88% reflected in this chart.
0%
20%
40%
60%
80%
100%
Closure-Rate Goal
71%
29%
2018
2019
2022
2021
2020
85%
15%
97%
89%
8%
88%
Audit Closure Rate
Closed in the Reporting Year
Closed after the Reporting Year
3
64 
2022 HIGHLIGHTS
INTRODUCTION
LABOR AND HUMAN-
RIGHTS COMMITMENT
HUMAN-RIGHTS  
DUE DILIGENCE
Identify and Assess 
Integrate and Act 
Track 
Communicate
LOOKING FORWARD
CONCLUSION
ACRONYMS AND 
ABBREVIATIONS

COMMUNICATE
WE SHARE HOW WE ARE ADDRESSING  
OUR IMPACTS
UNGP 21


COMMUNICATE
UNGP 21

With respect to labor and human rights, we communicate our policies, standards, strategies, 
targets, procedures, and progress. Our commitments for labor and human rights are shared 
in multiple ways, across different audiences. Any NXP team member, as well as any supplier, 
supplier worker, NGO, or other external stakeholder, can report an incident to NXP.  
Even workers in the supply chain are provided with NXP’s grievance email and a local  
phone number.
NXP
We communicate with our team members in a variety of ways (in their local language, if 
required), including, town-hall meetings, coffee chats with management teams, focus-group 
workshops, training sessions, one-on-one meetings, internal articles, newsletters, emails, and 
blogs. All team members have access to global and local policies and standards, as well as our 
NXP and Supplier Codes of Conduct, through our external website, the internal intranet site, 
team-member handbooks, and/or briefings. 
To assess and improve team-member engagement, we regularly conduct our global Winning 
Culture Survey. We invite NXP team members to share their feedback on a variety of factors, 
including engagement, strategy, culture, leadership, continuous improvement, collaboration, 
execution, ownership, work environment, support, and diversity, equality, and inclusion. 
Surveys are administered by a third party to ensure confidentiality. 
Our 2022 survey solicited input from our indirect-labor (IDL) team members, meaning those 
team members not directly involved in production of a product. The survey results showed 
positive momentum, with an increase in favorability to 97% when compared to responses 
from our previous survey cycle. The results show that collaboration and ownership are the 
cornerstones of NXP’s culture and that our team members are engaged, feel pride in the 
company, and believe that NXP is also a great place to work. 
Year-over-year, NXP saw improvements in 33 of the original 34 items in the survey. The  
third-party administrator of the survey reported that 88% of the survey items scored more 
positively than the 75th percentile benchmark, composed of companies operating in the 
technology sector.
Insights from our survey equip us to improve the team-member experience as well as our 
policies and processes. Using team-member feedback, we have created and improved 
company and/or country and region-specific programs and made updates to our tools and 
resources. These changes mainly focused on team-member development and well-being.
Our external and internal websites have copies of the NXP and Supplier Codes of Conduct in 
multiple languages, along with our annual Corporate Sustainability Report, this Modern Slavery 
Report, and our grievance mechanism. 
89%
Response Rate
85%
Engagement
83%
Great Place to 
Work
88%
Proud
84%
Valued
In 2020, we began sharing our annual Top 100 Supplier List, which identifies our high-spend 
suppliers for the past year. Please see our 2022 Top 100 Supplier List. 
We also report any occurrences of forced labor discovered in our supply chain. We disclose  
the number of priority violations as well as major and minor nonconformances by type and  
the country or region of occurrence. We also share the closure rate of nonconformance 
corrective actions. 
We have a long history of using international speaking engagements to highlight issues 
relating to labor and human rights, discuss due-diligence procedures, and share  
lessons learned.
66 
2022 HIGHLIGHTS
INTRODUCTION
LABOR AND HUMAN-
RIGHTS COMMITMENT
HUMAN-RIGHTS  
DUE DILIGENCE
Identify and Assess 
Integrate and Act 
Track 
Communicate
LOOKING FORWARD
CONCLUSION
ACRONYMS AND 
ABBREVIATIONS

COMMUNICATE
SUPPLY CHAIN
Communications with our supply chain take the form of trainings, consultations, collaboration, 
and discussions held before, during, and after our audits.
We also communicate our Supplier Code of Conduct and our Auditable Standards on Social 
Responsibility to our supply-chain partners. Our suppliers are bound, either contractually or 
through their conformance signature, to our Supplier Code of Conduct, which states that they 
will uphold standards for labor and human rights. We require our suppliers to communicate our 
policy, standards, and expectations to their own suppliers, including external service providers, 
and require them to audit and monitor their upstream suppliers.
GRIEVANCE MECHANISM AND ACCESS TO REMEDY
We are committed to promoting a culture of integrity, and encourage our team members, as 
well as external business partners and third parties, to express any concerns they have related to 
potential violations of the Code, NXP policies, or the law. 
Concerns and grievances can be confidentially lodged using various reporting channels, such 
as management, ethics liaisons, or the NXP Ethics Committee. There are dedicated ethics 
liaisons regionally and in each country. Concerns and grievances can also be submitted using the 
phone or web option of SpeakUp, a system hosted by an independent third party that facilitates 
anonymous reporting. Team members are encouraged to report potential violations of our Code 
using any of our reporting channels. 
Our SpeakUp reporting channels are communicated to all team members through the Code, 
dedicated intranet web pages, trainings, our website, and various other means. SpeakUp can be 
used by any employee, contractor, business partner, stakeholder, or other third parties.
All concerns raised are taken seriously. We apply the highest standards of confidentiality in 
the handling of all reports received. We have a strict non-retaliation policy to protect those 
who report concerns and grievances. Anyone who reports a concern in good faith is protected 
from retaliation, which can take the form of harassment, adverse employment, or career 
consequences.
In recent years, we have increased our communication about the importance of speaking up 
and the available reporting channels. Also, in 2022, our reporting levels were actively used 
throughout the organization, indicating that our reporting channels are effective.
MANAGEMENT AND RESOLUTION OF GRIEVANCE INVESTIGATIONS
Allegations, Approach, and Management
All reports are assessed and discussed by the NXP Ethics Committee. After the initial assessment 
of a report, an investigation team is appointed with the right expertise and skill set to conduct 
an in-depth investigation. Based on the findings of the investigation, a decision is made about 
whether the report can be substantiated. If so, we take appropriate follow-up actions. These 
actions can include education, organizational changes, counseling, reprimand, suspension, and/
or termination, depending on the nature and severity of the finding and the party’s willingness 
and ability to rectify the issue. While it is difficult to set a fixed timetable for resolution, since 
complaints vary in scale and complexity, most can be dealt with in under two months. 
Ethics Committee
The NXP Ethics Committee reviews reports and grievances and oversees investigations into 
alleged violations of the Code. The Ethics Committee consists of five senior leaders from Legal, 
Internal Audit, Human Resources, and Sustainability. Members are based in the Americas, 
Europe, and Asia-Pacific regions. The Ethics Committee meets bi-weekly to discuss all reports 
received and to monitor the progress of ongoing investigations. The Ethics Committee reports 
quarterly to the General Counsel, the Chief Financial Officer, the Chief Human Resources Officer, 
and the Audit Committee of the Board regarding allegations and investigations that are in 
progress or completed.
2017
2018
2019
2020
2022
2021
Number of Reports
Reports per 1,000 Team Members
Reports per 1,000 Team Members
Number of Reports
0
25
50
75
100
125
0
1
2
3
4
5
6
Number of Reports Received by the Ethics Committee
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COMMUNICATE
NXP
We make use of communication programs to ensure that every 
team member is informed and can report grievances by talking 
to their manager, through our open-door policy, or by speaking 
to the local ethics liaison, the Ethics Committee, and/or the 
third-party-administered SpeakUp line. Information about 
the reporting channels is easily accessible and visible, via the 
external website, our intranet, posters, internal social media, 
and email. 
Open-door Management Policies
Team-member engagement with management is openly 
practiced at all sites, with such events as quarterly calls, 
dialogue sessions, and programs that let workers raise 
concerns directly to the site general manager. We are 
committed to having open dialogue with potentially and 
affected team members and foreign migrant workers. This 
allows us to monitor and develop our approach to human 
rights.  
During an audit, when private interviews are conducted with 
team members, they receive a business card that has the local 
grievance phone number and the email address to be used if 
they have additional information, concerns, or need to report 
retaliation. 
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REMEDIATION
We expect all our suppliers, not just those in the top tier, to adhere to our ethical standards. 
In 2022, during a due-diligence audit of one of our suppliers in Malaysia, we uncovered a 
possible violation of recruitment fees being paid. A group of 13 workers from Nepal told an 
interviewer, from an NGO partner we work with, that they had paid fees while being recruited 
in Nepal and had been told that, if they were to report this to anyone, they would lose their 
jobs and be sent home to Nepal.
The workers used a telephone number, printed on a card given to them by the interviewer, to 
report the labor agent’s recruitment fees and threats to the Malaysian supplier. Upon hearing 
the reports, the supplier investigated the issue and confirmed that the labor agent had, 
indeed, charged recruitment fees and threatened deportation. 
Working with our NGO partner and the supplier, we took immediate action to protect the 
safety and well-being of the Nepali workers. All 13 were transferred from the dormitory 
managed by the labor agent to one managed by the supplier. A worker-liaison officer, 
appointed by the supplier, conducted daily follow-ups with the workers for a month, until 
it was certain that the workers were safe and no longer under threat from the labor agent. 
Our NGO partner provided additional support early in the process by calling on the affected 
workers each day for a week. 
The supplier met with the labor agent to ensure they were fully aware of the need to comply 
with NXP’s requirements for ethical recruitment practices, and to confirm that the labor agent 
would communicate these expectations to their partners in Nepal. 
We worked with our supplier to determine the amount of the recruitment fee paid and to 
calculate the amount to be reimbursed. NXP has verified that all 13 workers have been fully 
reimbursed. As a follow-up to this experience, we plan to conduct a verification audit of 
the supplier and will continue to engage with the affected workers as well as other workers 
employed by the supplier. 
SUPPLY CHAIN
Suppliers are required to have workplace grievance mechanisms in place that ensure the 
confidentiality, anonymity, and protection of whistleblowers who may report any complaints, 
issues, or concerns. The grievance mechanism must be available in the workers' languages. 
Suppliers must train their workers on the grievance mechanism and communicate the process 
to them, so workers can raise concerns without fear of retaliation. Suppliers must state in a 
policy that they will not tolerate any retaliation by management or any other person or group, 
directly or indirectly, against anyone who, in good faith, makes an allegation of misconduct or 
wrongdoing, or who helps management or any other person or group investigate an allegation. 
The supplier's grievance mechanism must also be made available to their own suppliers. 
We expect suppliers to investigate, respond to, and close out all complaints, issues, and 
concerns reported through the grievance mechanism. During a supplier audit, the auditor tests 
the grievance mechanism thoroughly. During a private worker interview, questions regarding the 
ways to report a grievance are discussed. After the interview, the auditor provides the worker 
with the NXP third-party grievance card, which they can use at any time and for any reason to 
make an anonymous report in the local language. 
 
NXP acknowledges that we are putting the worker in a vulnerable situation with a private 
interview, where potential negative impacts could occur, such as retaliation or discrimination. 
NXP addresses this by providing the NXP grievance mechanism and an agreement with the 
supplier that retaliation or discrimination will not occur. Any cases of retaliation reported will 
initiate an investigation and, if substantiated, will prompt NXP to take appropriate measures, 
including possible termination of business with that supplier.
Resolving Allegations Raised From our Grievance Mechanisms 
We monitor and assess compliance, and investigate every allegation. These investigations may 
involve the NXP Ethics Committee. If a problem is detected, we analyze the root cause and 
modify the relevant internal control system to prevent a possible recurrence. Acknowledgments 
are sent as soon as possible after receiving the complaint and investigation records are updated 
regularly. No allegations were received in 2022.
COMMUNICATE
NXP IN ACTION
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LOOKING  
FORWARD


Industry
Increase our engagement and collaboration at the industry level to identify 
and remediate actual and potential cases of labor and human-rights abuses

LOOKING FORWARD
NXP is committed to the elimination of modern-day slavery and abuses of labor and human 
rights. Moving forward, we will continue to conduct an annual review of our programs and 
processes, adopt emerging best practices, and enhance our approach based on real-world 
experience. Evaluating our performance on a yearly basis helps us to better protect the  
people we work with and demonstrates our commitment to being an ethical, responsible,  
and transparent company. 
In the near term, we already have plans to introduce more interactive tools for accountability, 
and more ways to engage with workers and incorporate their feedback. As part of these plans, 
we will focus on issues relating to collaboration, integration, and supply-chain engagement. 
COLLABORATION
Experts 
Continue our work with expert organizations, NGOs, CSOs, and academia, 
stay current on relevant issues, and monitor best practices as they evolve
Customers
Continue to work with customers to address human-rights issues and 
challenges throughout the supply chain, and drive implementation to our 
lower-tier suppliers
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New-Supplier Assessments and Audits
Conduct self-assessments and, if necessary, a third-party audit of suppliers 
prior to onboarding

Human Rights Policy
Reinforce the evolving importance of human rights and ensure a consistent 
approach, with support for all international norms and expectations, by 
extending our core NXP Social Responsibility efforts with our dedicated 
policy on human rights
NXP Human-Rights Due-Diligence Management System
Strengthen NXP's efforts to conduct due diligence across our value chain, 
capture all salient human-rights risks, and take appropriate measures to 
mitigate risk
Codes and Standards
Update the Supplier Code of Conduct and the Auditable Standards on 
Social Responsibility
LOOKING FORWARD
INTEGRATION
SUPPLY-CHAIN ENGAGEMENT
Training
Continue raising awareness, through webinars and targeted training, to help 
our suppliers develop a best-in-class program
Governance
Integrate additional labor and human-rights risks through the Environment, 
Social, and Governance (ESG) Management Board, which reports to the 
Nominating, Governance and Sustainability Committee of NXP’s Board  
of Directors
Audits
Continue to audit our suppliers, with the goal of decreasing the  
number of audit nonconformances and, more importantly, the number  
of priority violations
Going Beyond an Audit
Design a model to assess mature suppliers on their human-rights programs
Worker Voice
Deploy a worker voice app to complement our ethics hotline for labor and 
human rights across our manufacturing sites and create a labor and human-
rights remediation committee to respond to worker grievances effectively 
and efficiently
Vendor Portal and Supplier Data-Management System
Continue developing an online supply-chain portal, which enables us to 
effectively communicate with our global supply chain, represents another 
step in strengthening our collaborative and consultative engagement, and 
helps build the capacity of requirements and metrics within our supply chain

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CONCLUSION

CONCLUSION
Since our founding, in 2006, NXP has made it a priority to provide a safe and healthy 
working environment that treats people with respect and dignity – even while employing 
tens of thousands of people in dozens of countries worldwide, and while working with a 
complex, multi-layered supply chain that spans the globe. 
We recognize that there are universal rights, inherent to us all, and we work continually to 
preserve those rights. Our focus on human rights extends beyond our own manufacturing 
sites, to include the people who work in our supply chain, and we emphasize the need for 
continuous improvement. We strive to surpass existing standards and exceed stakeholder 
expectations, and regularly share our expertise with our peers and supply-chain partners.
In 2022, while building on the results of our ongoing due diligence, we achieved a number 
of important milestones. We published our Human Rights Policy. This Policy applies 
enterprise-wide to all NXP team members, and guides how we work with our value-chain 
partners and our third-party service providers to achieve our goals for human rights. We also 
updated the NXP Human Rights Management System, which provides clear guidance on 
how human-rights due diligence is to be conducted across our business value chain. 
We also took advantage 2022’s easing COVID-19 restrictions to increase the number of 
supply-chain due-diligence audits we conducted. In the coming year, we look forward to 
launching a vendor-collaboration portal, a project delayed by the COVID-19 pandemic, 
which will increase two-way communication between us and our supply chain. 
Human rights are an essential part of our sustainability journey as a company. We will 
continue to embrace collaboration and transparency, and will maintain our commitment to 
worker and supplier empowerment. 
That means continuing to work closely with suppliers, especially those who have had audit 
nonconformances or priority violations, to ensure they fully understand our standards and 
are equipped with the skills and knowledge to avoid recurrence. 
It also means continuing to engage with high-priority suppliers, so we can better understand 
the business and operational challenges they face, and so we can continue to evaluate the 
adequacy and effectiveness of our standards and policies. 
If you would like more information on this topic, please email NXP’s Sustainability Team at 
csr@nxp.com.
Eric-Paul Schat 
Senior Director Sustainability and Human Rights 
NXP Semiconductors 
June 2023
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74

ACRONYMS AND 
ABBREVIATIONS


ACRONYMS AND ABBREVIATIONS
A
APAC
Asia-Pacific
ATMC
Austin Technology and Manufacturing Center (NXP)
AZ
Arizona (US)
B
None
C
CAHRA
Conflict-Affected and High-Risk Areas (EPRM)
CMRT
Conflict Minerals Reporting Template (RMI)
CSO
Civil Society Organization
D
DL
Direct Labor
E
EHS
Environment, Health, and Safety
EMEA
Europe, Middle East, and Africa
EMRT
Extended Minerals Reporting Template (RMI)
EPRM
European Partnership for Responsible Minerals
ESG
Environmental, Social, and Governance
ESIA
European Semiconductor Industry Association
ETI
Ethical Trading Initiative
EV
Electric Vehicle
F
FTE
Full-Time Equivalent
G
GaN
Gallium Nitride
GBI
Global Business Initiative on Human Rights
GS&A
General, Sales, and Administrative
H
HC
Headcount
I
IDL
Indirect Labor
IFRS
International Financial Reporting Standards
ILO
International Labour Organization
IoT
Internet of Things
IRCA
International Register of Certified Auditors
J
JV
Joint Venture
K
KPI
Key Performance Indicator
L
None
M
MSCI
MSCI, Inc. (US)
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N
NASDAQ
National Association of Securities Dealers Automated Quotations
NGO
Non-Governmental Organization
NXPI
NXP Semiconductors N.V.
O
OECD
Organization for Economic Cooperation and Development
P
PPE
Personal Protective Equipment
Q
None
R
RBA
Responsible Business Alliance
RLI
Responsible Labor Initiative
RMI
Responsible Minerals Initiative
S
SAI
Social Accountability International
SAQ
Self-Assessment Questionnaire (RBA)
SCC
Semiconductor Climate Consortium (SEMI)
SDGs
Sustainable Development Goals (UN)
SSMC
Systems on Silicon Manufacturing Company (Singapore)
ACRONYMS AND ABBREVIATIONS
T
TX
Texas (US)
U
UDHR
Universal Declaration of Human Rights
UN
United Nations
UNGC
UN Global Compact
UNGPs
UN Guiding Principals on Business and Human Rights
US
United States
USD
US Dollar
UWB
Ultra-Wideband
V
VAP
Validated Assessment Program (RBA)
W
WSC
World Semiconductor Council
X
None
Y
None
Z
None
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

www.nxp.com
NXP Semiconductors N.V. (NASDAQ: NXPI) brings together bright minds to create breakthrough technologies that make the connected world better, safer and more 
secure. As a world leader in secure connectivity solutions for embedded applications, NXP is pushing boundaries in the automotive, industrial & IoT, mobile, and 
communication infrastructure markets while delivering solutions that advance a more sustainable future. Built on more than 60 years of combined experience and 
expertise, the company has approximately 31,000 employees in more than 30 countries and posted revenue of $13.21 billion in 2022. Find out more at www.nxp.com.