2023

Visit nxp.com
nxp.comTable of Contents
ē Introduction
ē Sustainability Strategy
ē Our Businessē Product Stewardshipē Environment, Healthand Safetyē Team Members
ē Social Responsibility
ē Governanceē Data and Indicesē Appendicesē Forward-Looking

Statements

Introduction�������������������������������������������������������������������������������������������������� 3

Diversity, Equality and Inclusion�������������������������������������������������������������������������87

An ESG Message From Our Chief Sustainability Officer����������������������� 6

Development and Growth������������������������������������������������������������������������������������� 98

About This Report������������������������������������������������������������������������������������������������������������ 8

Team-Member Retention�������������������������������������������������������������������������������������103

A Letter From Our CEO������������������������������������������������������������������������������������������������� 4

Compensation and Benefits�������������������������������������������������������������������������������� 96

2023 ESG Highlights�������������������������������������������������������������������������������������������������������7

Future Talent�������������������������������������������������������������������������������������������������������������������� 101

Stakeholder Engagement����������������������������������������������������������������������������������������� 9

Community Outreach����������������������������������������������������������������������������������������������104

Sustainability Strategy������������������������������������������������������������������������14

Social Responsibility��������������������������������������������������������������������������106

Approach�����������������������������������������������������������������������������������������������������������������������������16

Supplier Engagement����������������������������������������������������������������������������������������������� 115

Governance����������������������������������������������������������������������������������������������������������������������23

Governance���������������������������������������������������������������������������������������������130

Our Business��������������������������������������������������������������������������������������������� 25

Board of Directors������������������������������������������������������������������������������������������������������� 132

Overview�������������������������������������������������������������������������������������������������������������������������������15
Goals���������������������������������������������������������������������������������������������������������������������������������������18

Ethics������������������������������������������������������������������������������������������������������������������������������������135

Sustainable Product Solutions���������������������������������������������������������������������������� 30

Privacy��������������������������������������������������������������������������������������������������������������������������������138

Product Stewardship���������������������������������������������������������������������������32

Taxation�����������������������������������������������������������������������������������������������������������������������������140

Total Quality��������������������������������������������������������������������������������������������������������������������� 29

Anti-Bribery and Corruption�������������������������������������������������������������������������������� 137
Cybersecurity����������������������������������������������������������������������������������������������������������������139

Environmental Product Compliance���������������������������������������������������������������33

Enterprise Risk Management������������������������������������������������������������������������������143

Responsible Mineral Sourcing������������������������������������������������������������������������������37

Business Resilience����������������������������������������������������������������������������������������������������144

Environment, Health and Safety������������������������������������������������� 38

Data and Indices����������������������������������������������������������������������������������146

Environment Overview������������������������������������������������������������������������������������������������41

Scope 1 Chemicals List�������������������������������������������������������������������������������������������� 175

Energy�����������������������������������������������������������������������������������������������������������������������������������57

SASB Index������������������������������������������������������������������������������������������������������������������������190

Management������������������������������������������������������������������������������������������������������������������ 39

ESG Performance�������������������������������������������������������������������������������������������������������� 147

Emissions��������������������������������������������������������������������������������������������������������������������������� 43

GRI Index���������������������������������������������������������������������������������������������������������������������������� 179

Water������������������������������������������������������������������������������������������������������������������������������������ 63

TCFD Index������������������������������������������������������������������������������������������������������������������������193

Hazardous Materials���������������������������������������������������������������������������������������������������73

Appendices�������������������������������������������������������������������������������������������� 200

Health and Safety���������������������������������������������������������������������������������������������������������75

UN Global Compact��������������������������������������������������������������������������������������������������201

Team Members�������������������������������������������������������������������������������������� 80

Top 100 Supplier List��������������������������������������������������������������������������������������������������203

Sustainability Policy��������������������������������������������������������������������������������������������������202

Overview�������������������������������������������������������������������������������������������������������������������������������81

Acronyms and Abbreviations��������������������������������������������������������������������������� 204

Thought Leadership��������������������������������������������������������������������������������������������������� 85

Forward-Looking Statements���������������������������������������������������� 209

Team-Member Engagement������������������������������������������������������������������������������ 83

NXP Corporate Sustainability Report

Overview����������������������������������������������������������������������������������������������������������������������������� 131

Overview����������������������������������������������������������������������������������������������������������������������������� 26

Waste����������������������������������������������������������������������������������������������������������������������������������� 68

2

Human Rights���������������������������������������������������������������������������������������������������������������� 107

Introduction

Presenting our Corporate Sustainability
Report and 2023 performanceIntroduction: A Letter From Our CEO
ē Introduction
Our CEO
ē A Letter From Ourē An ESG Message From Our

Chief Sustainability Officer

ē 2023 ESG Highlights
ē About This Reportē Stakeholder Engagement

ē Sustainability Strategy
ē Our Businessē Product Stewardshipē Environment, Healthand Safetyē Team Members
ē Social Responsibility
ē Governanceē Data and Indicesē Appendicesē Forward-Looking

Statements

NXP is on a journey to advance a better world and bring forward a brighter,better future through innovation. As a global technology company, we have a specialrole to play by pioneering solutions that help shape a more sustainable future.
From automotive to industrial, smart home to smart city, mobile to communications
infrastructure, we develop innovative solutions that address major global needs.
Below are just a few examples of smarter and more sustainable solutions that NXP
announced in 2023.
2023 Solutions
Automotive – NXP's MC33775 Battery Cell Controller and FS26 System Basis Chip get more from EV
batteries, with the MC33775 enabling smaller batteries with the same range and the FS26 savingenergy with ultra-low power modes.
Smart City – NFC, UCODE and JCOP® ID 2 find new strengths in sustainability, with our NFC chips
tracking product history and performance in the circular economy, UCODE ICs providing realtime data on food product freshness and location, and JCOP ID 2 advancing document security,
enabling longer lifespans of identity documents.
Industrial Solutions – We announced a major MOU and agtech partnership using i.MX 8M Plusand the launch of MCX N series MCUs and i.MX 91 applications processors, which combine platform
longevity with low power consumption. NXP’s AI/ML solutions help predictive maintenance preserve
resources in every industrial sector, while an MOU with Honeywell aims to optimize and secureenergy use in commercial buildings. A partnership with Aigen and Au-Zone Technologies uses
i.MX 8M Plus to help reduce pesticide use. Our new MCX N Series balances performance andpower, with 42x faster ML on our eIQ® Neutron NPU, reducing power consumption, while the i.MX 91
applications processor family is set to meet the energy-efficient needs of new Linux®-based IoT
and industrial applications.
In addition to our breakthrough technologies, NXP’s commitment to sustainability is further
underscored by our ongoing efforts to achieve carbon neutrality in our operations by 2035. In 2023,
we continued to increase our use of renewable electricity and invested in technology to reduce
harmful greenhouse gas emissions. We also remain focused on our water usage and continue
to improve on our water recycling level.

4

NXP Corporate Sustainability Report

Kurt Sievers
President and CEO
NXP Semiconductors

Introduction: A Letter From Our CEO
ē Introduction

We remain committed to making measurable year-on-year progress in many other areas as well. Here are just a few examples:

Our CEO
ē A Letter From Ourē An ESG Message From Our

2023 Highlights

Chief Sustainability Officer

ē 2023 ESG Highlights
ē About This Reportē Stakeholder Engagement

ē Sustainability Strategy
ē Our Businessē Product Stewardshipē Environment, Healthand Safetyē Team Members
ē Social Responsibility
ē Governanceē Data and Indicesē Appendicesē Forward-Looking

Statements

5

NXP Corporate Sustainability Report

Board Refreshment and Evolution – Julie Southern was
appointed Chair of NXP’s Board of Directors, and is a memberof the Board’s Nominating, Governanceand Sustainability Committee.
Sustainable Portfolio – In 2023, we developed an initialframework that allows us to quantify how our products enable
a more sustainable world through innovation. We calculated
the manufacturing carbon footprint of our products and havea better understanding of how they contribute to sustainability
in use. This baseline guides our strategic portfolio choices andinvestments related to sustainability so we can focus on areas
where NXP can truly make a difference.
Carbon Emissions – In 2023, we ramped up our efforts to
reduce our carbon emissions, both through investing intechnology to reduce the emission of greenhouse gases(GHGs) and by increasing the utilization of renewable electricity.
For 2023, more than 39% of the electricity used to manufacture
our products came from renewable sources, compared with
35% in 2022.
Diversity, Equality and Inclusion – In 2023, 88% of our managers
completed unconscious bias training, creating more awarenessabout unconscious bias and enabling an inclusive environment.
In progressing toward our aspirational 2025 representation
goals, we increased the percentage of women in R&D roles to
20% – an increase of one percentage point over the prior year –and sustained the representation results from the prior year of
women in our indirect labor (IDL) and executive populations.

Ethics and Compliance – In 2023, we published a standalone
Anti-Bribery and Corruption Policy. Ethics and compliance
topics were also included in the fourth cycle of our Winning
Culture Survey. We had a favorability rating of 95% for aquestion related to NXP’s commitment on ethical businesspractices, which was the highest scoring question on the survey.
Human Rights – Our focus on human rights extends beyond oursites to include the people who work in our supply chain. In 2023,
we refreshed and updated our human rights management
system to further reflect the objectives set in our Human Rights
Policy and provide clear guidance on conducting human-rights
due diligence across our value chain.
Health and Safety – Providing our team members with a safeand healthy work environment remains a top priority at NXP. In
2023, we established a global team to standardize ergonomics
initiatives and reduce ergonomic injuries across the company.
Furthermore, we created a team responsible for promoting acohesive safety-awareness campaign. We also maintained
our low injury rate of 0.10 (per 100 full-time employees/working
hours), keeping us well below the semiconductor industry
average.

NXP is committed to our ESG
journey and dedicated to driving
further advancements. We willcontinue to review our sustainability
activities regularly to ensure that
we are taking the appropriate
actions to achieve our ambitious,
long-term goals, which will require
the ongoing dedication of all
our team members, partners,
customers and other stakeholders.
The future is not set in stone,
and everyone has a role to play inshaping it. We are on this journey
together, and although the roadahead may be challenging attimes, the journey will be worth
it if we can contribute to making
a better, more sustainable world
for generations to come.
Best regards,
Kurt Sievers
President and CEO
NXP Semiconductors

Introduction: An ESG Message From Our Chief Sustainability Officer
ē Introduction
ē A Letter From Our CEO
Ourē An ESG Message From Our

Chief Sustainability
Officer
Sustainability Officer

ē 2023 ESG Highlights
ē About This Reportē Stakeholder Engagement

ē Sustainability Strategy
ē Our Businessē Product Stewardshipē Environment, Healthand Safetyē Team Members
ē Social Responsibility
ē Governanceē Data and Indicesē Appendicesē Forward-Looking

Statements

The key to a more sustainable future is making
continual progress. Progress in technology, innovation,
representation, collaboration — all of which serve as thefoundation of NXP’s sustainability mission and strategy.
Our passion for progress stems from our unwavering
belief in NXP’s ability to create a better world andcommitment to our global community. We develop
solutions and design products aimed at major global
needs, from energy efficiency and greener mobility tofood security and secure communications. We also
recognize our responsibility to help foster inclusionand protect human rights in the workplace.
In 2023, we increased our renewable electricity usage
to 39%, up from 35% in 2022, and we continue toinstall abatement tools across our sites and upgradeor replace equipment to further reduce electricity
and natural-gas usage — part of our ongoing efforts
toward achieving carbon neutrality by 2035. For the firsttime, as part of our ongoing Climate Transition Plan,
we determined our broader Scope 3 emissions anddeveloped Scope 3 reduction targets, which are due
to be validated by the Science Based Target initiative(SBTi) in 2024. In addition, we took a deep dive into ourtechnology portfolio and roadmap, and developed aframework that establishes how our products enable
a more sustainable world. This framework enables
us to work closely with team members, partners andcustomers to help identify and focus on the areas
where NXP can make the most difference.

Other ways we continued our ESG
progress in 2023 included:

NXP published a new Biodiversity Policy, whichcontains various commitments to help us and ourpartners contribute to the protection of biodiversity.
These commitments include conducting local risk

6

NXP Corporate Sustainability Reportassessments of our business operations and requestingthat our business partners align with these biodiversity
commitments. Furthermore, we pledge to baseassessments of biodiversity on international guidance,such as the Taskforce on Nature-related Financial
Disclosures (TNFD).
In 2023, we incorporated an environmental metric to
NXP’s Supplier Rating System, which is used to regularly
assess supplier performance and inform sourcing
decisions. This addition raises suppliers’ awarenessthat their Scope 1 and 2 carbon emissions have a
critical impact on NXP’s sustainability goals.
We increased our Employee Resource Group (ERG)
footprint by establishing two new chapters of “No eXtra
Planet” in the United States and India along with two
new chapters of our “Emerging Professionals / Young
Community” ERG in France and India.

Looking Ahead

At NXP, we have the privilege to drive positive change
and sustainable growth. We will remain steadfast in the
pursuit of our sustainability mission, regularly reviewing
our progress towards our goals to ensure that we aretaking meaningful actions.
This mission also remains a guiding principle as we
integrate sustainability in all aspects of our products —from definition to manufacturing — while staying true
to our core values, which are built on a foundation oftrust and respect.
Along with our global team members, I’m inspired by
the work we have accomplished so far and energized
to propel our journey forward.
Best regards,
Jennifer Wuamett

Jennifer Wuamett
Executive Vice President,
General Counsel,
Corporate Secretary andChief Sustainability Officer
NXP Semiconductors

Introduction: 2023 ESG Highlights
ē Introduction
ē A Letter From Our CEO
ē An ESG Message From Our

Chief Sustainability Officer

ē 20232023ESGESGHighlights
Highlights
ē About This Reportē Stakeholder Engagement

ē Sustainability Strategy
ē Our BusinessSocialEnvironmental

51%

Assessed
and Reportedon AllWater
Recycled

Scope 3



Emission
Categories

20%

Women
in R&D
Positions

Governance and Economic Impact

70%of Team
Members
are Viewed
as Highly
Engaged

Certified
as a Great

Place toWork

in China, India,
Mexicoand the US

100%

Certified
Conflict-Free
3TG Smeltersē Product Stewardshipē Environment, Healthand Safetyē Team Members
ē Social Responsibility
ē Governance

24%

39%

Decreasein Absolute
Scope 1 and2 Emissions
Since 2021
Baseline

Renewable
Electricity
Useē Forward-Looking

Statements

86%

Waste
Recycled

Establishedthe NXP

Conducted

Maintained
a Low Total
Case Incident
Rate of

Human
RightsWorking Group

All-TimeLowē Data and Indicesē Appendices

Improved
GlobalEmployee
Voluntary
Turnoverto anPublished
our First

Biodiversity
PolicyUnconsciousBias
Training
for People
Managers

0.10

100%

of Suppliers
Signed theSupplier Codeof Conduct
Statement50%

of Board
Directors
have ESG
Experience

ReviewedandUpdatedthe NXP
Human Rights

Due Diligence
SystemPublisheda Standalone

AntiBribery
andAntiCorruption
Policy7

NXP Corporate Sustainability ReportIntroduction: About This Reportē Introduction
ē A Letter From Our CEO
ē An ESG Message From Our

Chief Sustainability Officer

ē 2023 ESG Highlights
ē About This Report
Reportē Stakeholder Engagement

ē Sustainability Strategy
ē Our BusinessThis Corporate Sustainability Report reflects our commitment to transparency and sustainablebusiness practices. It explores the environmental, social and governance (ESG) aspects of ourbusiness activities and products and allows us to share how we put sustainability into action.

Approach

The structure of this Report is informed by a number of global voluntary sustainability reporting
frameworks. We developed this Report with reference to the Global Reporting Initiative (GRI)
Standards. This report also aligns with other leading reporting frameworks, such as the Sustainability
Accounting Standards Board (SASB) and the Task Force on Climate-Related Financial Disclosures(TCFD). We report annually with our Communication on Progress to the United Nations Global
Compact (UNGC) and align with the United Nations Sustainable Development Goals (SDGs).

ē Product Stewardship

Data presented in this Report covers the 2023 calendar year (January 1 to December 31),
unless otherwise stated.

ē Environment, Health

Additional Disclosuresand Safetyē Team Members
ē Social Responsibility
ē Governanceē Data and Indicesē Appendices

We provide additional ESG information in three documents: our Form 10-K, our Proxy Statement andour Statutory Annual Report, which is prepared in accordance with Dutch law and the International
Finance Reporting Standards. These three documents are available on our Annual General Meetingwebsite.

Scope

The information and data in this Report covers our worldwide locations and joint ventures forwhich we have operational control. Environmental data includes owned, controlled and leased
manufacturing sites, which accounts for the majority of our environmental footprint. Some
environmental data includes non-manufacturing sites, which is specified in the relevant section.
Our reporting reflects the current size and scope of NXP's business lines, which have evolved over
the years. For more information, visit our NXP History webpage.

ē Forward-Looking

Statements

Contact Us
We value everyone's input and invite you to join us on our ongoing sustainability journey. We post
updates on our work at our Smarter World blog, our Sustainability website and our Sustainability
Stories magazine website, or you can contact our team directly at csr@nxp.com.

8

NXP Corporate Sustainability ReportIntroduction: Stakeholder Engagement
ē Introduction
ē A Letter From Our CEO
ē An ESG Message From Our

Chief Sustainability Officer

ē 2023 ESG Highlights
ē About This Report
Engagement
ē Stakeholder
Stakeholder Engagement

Stakeholder feedback is an important part of our environmental, social and governance (ESG) strategy, helping
us evolve our processes and culture while also guiding product development. In 2023, we consulted with all of
the stakeholders in the following table to assess our ESG focus areas. For more information on this assessment,
see the Approach section of our Sustainability Strategy chapter of this Report.
Stakeholder Engagement Process
Stakeholder GroupEngagement Style

Purpose of Engagement

How Outcomes are Accounted Forē Our Business

Civil Society Organizations/ Non-Governmental
Organizations(CSOs/NGOs)

Dialogue, multi-stakeholder projects
and conferences.

To align business and civil society's expectations
on sustainability due diligence and collaborate tosupport affected stakeholders.

Update our policies and actions to include bestpractices that serve affected stakeholders.

ē Product Stewardship

Customers

Conferences, customer productlaunches, trade shows and dedicatedsustainability- or business-review
meetings. Customer-satisfaction
survey and review of customer ESG
documentation.

Understand and align with customer expectations.
Collaborate to create more sustainable products.

Comply with customer requirements andreduce the need for customer audits throughalignment.

Governments / Public
SectorMulti-stakeholder projects, meetingsand conferences. Industry-association
meetings.

Provide business/industry understanding on
how relevant regulations will impact NXP and our
stakeholders, so we can respond appropriately.

Update reporting and processes to comply
with regulatory requirements.

Industry Associations

Workgroup and meeting participationor leadership.

Share best practices among peers and stayaligned with industry expectations.

Update NXP's operations and plans with
relevant industry codes and standards.

Shareholders / Investors

Shareholder meetings, investor calls
and conferences.

Align with investor expectations and priorities to
add value to their initiatives and NXP activities.

Compile and share feedback with relevant
teams when improvements are needed.

Suppliers

Supplier due-diligence audits andsurveys. Supplier review meetings.

Increase sustainability impact, including
greenhouse-gas (GHG) emissions andperformance, by encouraging cooperation
throughout the supply chain.

Conduct supplier due-diligence audits,
complete corrective action closures andcoordinate initiatives. Scope 3 reduction
activities.

NXP Team Members

Engage with team members
through a variety of tools. Quarterly
Pulse meetings, surveys, Employee
Resources Groups (ERGs), town hallstyle meetings, Innovation Summit
and Growth Week.

To highlight and celebrate innovation within
NXP. Gain insights into the priorities, concernsand suggestions of our NXP team members to
help foster a culture of success and innovation,and to be recognized as a good employer andresponsible social citizen.

Compile and summarize feedback from teammembers for review by leadership. Leadershipthen chooses adjustments and improvements
based on identified needs and priorities.

NXP Sustainability Subject
Matter Experts (SMEs)

Regular meetings. Working groups,
surveys and projects.

Utilize the expertise of sustainability practitioners
within NXP to improve our overall ESG Program.

Incorporate suggestions from sustainability
SMEs as feasible and escalate to ESG
Management Board as needed.

ē Environment, Healthand Safetyē Team Members
ē Social Responsibility
ē Governance

External Stakeholders

ē Sustainability Strategy

ē Data and Indicesē Appendicesē Forward-Looking

Internal
Stakeholders

Statements

9

NXP Corporate Sustainability ReportIntroduction: Stakeholder Engagement
ē Introduction
ē A Letter From Our CEO
ē An ESG Message From Our

Chief Sustainability Officer

ē 2023 ESG Highlights
ē About This Report
Engagement
ē Stakeholder
Stakeholder Engagement

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

Engagement

Feedback

Outcomes and Follow-Up

Alignment with customer priorities for
emerging regulatory requirements.

Shared our mid- and long-term ESG/
Sustainability goals with our customers
and provided updates on our sustainability/
ESG roadmaps.

Customers

Participated in conferences, customer
product launches and trade shows,as well as regular business-review
meetings and sustainability-review
meetings. Conducted a customersatisfaction survey, using the Net
Promoter Score method, and performed
a separate customer survey focused on
ESG requirements. Hosted education andtraining events. Responded to questions
and requests relating to compliance,
legal and regulatory issues, as well as
general sustainability inquiries.
Participated in member meetings,
conferences and outreach meetings withgovernments and authorities. Provided
input for the Governance Board.

Sharing of best due-diligence practices,
greater understanding of actual conditions
in mines and the mineral supply chain, alongwith ideas for improving those conditions.

Provided support to mine sites in ConflictAffected and High-Risk Areas (CAHRAs) byfinancing “on the ground” projects.

European Semiconductor Industry
Association (ESIA)

Chaired ESIA Responsible Sourcing
workgroup, actively participatedin 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 fromthe EU Commission on new regulations
concerning sustainability and humanrights. Completed business-impact
assessments for proposed regulations.

Multi-industry human-rights best practices
for businesses.

Global Business Initiative (GBI)

Attended two peer-learning meetings
for members, various ad hoc meetingsand conference calls organized by the
GBI. Promoted NXP's work in community
engagement by visiting vocational schools
in rural Indonesia to raise awareness on
the rights of migrant workers.

Enhanced and strengthened human-rights
due diligence across NXP value chain, in
preparation for upcoming mandatory
regulations. Continued to learn and sharesuccesses and challenges in implementing
the UN Guiding Principles, in a multisectoral setting.

Joined the Multi-Stakeholder SteeringGroup (MSG) for the Responsible
Minerals Implementation Programme.

Challenges related to responsible mineralsourcing.

Provided guidance and support tooperational aspects of the OECD’s
Responsible Minerals Implementation
Program.

ē Sustainability Strategy
ē Our Businessē Product Stewardshipē Environment, Healthand Safetyē Team Members
ē Social Responsibility

European Partnership for Responsible
Minerals (EPRM)

ē Governanceē Data and Indicesē Appendicesē Forward-Looking

Statements

Organisation for Economic
Co-operation and Development(OECD)10

NXP Corporate Sustainability Report

Need for more detailed sustainability
reporting with emphasis on climate change
as well as life-cycle analysis and carbon
footprint of products.

Signed sustainability agreements andresponded to sustainability surveys.
Continued to work on carbon-neutrality
projects, including the increased use ofrenewable electricity. Continued working on
Scope 3 reporting and setting up systems
to report carbon foot-printing of products.

Provided information for case studies.

Introduction: Stakeholder Engagement
ē Introduction
ē A Letter From Our CEO
ē An ESG Message From Our

2023 Sustainability Stakeholder Engagement Results
Stakeholder

Engagement

Feedback

Outcomes and Follow-Up

Attended monthly and quarterly calls
as a Board member and an RBA Full
Member.

Alignment with the industry and member
companies on salient issues regarding laborand human rights.

Worked with the RBA to develop a toolthat will help us map our supply chain
beyond Tier 1. Provided input to a gap
analysis between the RBA's due-diligenceschemes and proposed human-rights duediligence regulation in the EU and the US.
Participated in strategy sessions to define
the RBA's approach to climate change andenvironmental issues in the supply chain.
Participated in expert panel discussions
on Ethical Recruitment and ESG Reportingat the annual RBA Responsible Business
Conference.

Responsible Labor Initiative (RLI)

Attended monthly workgroup meetings
and, as a Board delegate, attended
quarterly Steering Committee
meetings. Supported the RLI in external
stakeholder engagement and meetingsand participated in expert panels at
the annual RBA Responsible Business
Conference.

Guidance on definition of fees, gap analysis
on various guidance standards, labor-agent
training and mapping the labor-agent
recruiting corridor.

Updated our Auditable Standards per the
RLI's revised definition of fees. Shared NXP'spractices at various forums organized by
the RLI. Participated in external stakeholder
engagement process organized by the RLI.

Responsible Mineral Initiative (RMI)

Attended annual member meeting,monthly plenary meetings, smelter
engagement team meetings andvarious conference calls organized by
the RMI.

Tools and resources to make sustainabledecisions about mineral sourcing. Discussed
best practices within the industry.

Upgraded tools for new Conflict Minerals
Reporting Template (CMRT) and updated
Extended Minerals Reporting Template(EMRT). Verified best practices.

Continued our ongoing engagement
as a founding member of the
Semiconductor Climate Consortium.

Collaboration on best practices andinnovation to accelerate the semiconductor
industry’s efforts to reduce the emission ofgreenhouse gases.

Leveraged expertise and resources invarious portions of the supply chain tocontinue to expand NXP’s capability topositively impact our carbon footprint.
Participated in all five working groups, withparticular focus on Scope 1, Scope 2 andBaselining and Ambition Setting. Supported
adoption and publication of industry-wide
ambition statements. Future focus onleveraging joint learning and accelerating
the progress toward carbon neutrality.

Chief Sustainability Officer

ē 2023 ESG Highlights
ē About This Report
Engagement
ē Stakeholder
Stakeholder Engagement

ē Sustainability Strategy

Responsible Business Alliance (RBA)ē Our Businessē Product Stewardshipē Environment, Healthand Safetyē Team Members
ē Social Responsibility
ē Governanceē Data and Indicesē Appendicesē Forward-Looking

Statements

SEMI Semiconductor Climate
Consortium (SCC)11NXP Corporate Sustainability ReportIntroduction: Stakeholder Engagement
ē Introduction
ē A Letter From Our CEO
ē An ESG Message From Our

2023 Sustainability Stakeholder Engagement Results
Stakeholder

Chief Sustainability Officer

ē 2023 ESG Highlights
ē About This Report
Engagement
ē Stakeholder
Stakeholder Engagement

ē Sustainability Strategy

Shareholders / Investorsē Our Businessē Environment, Healthand Safety

Suppliers

ē Social Responsibility
ē Governanceē Data and IndicesTeam Members

ē Appendicesē Forward-Looking

Statements

UN Global Compact (UNGC)12NXP Corporate Sustainability Report

Feedback

Outcomes and Follow-Up

Our Chairman and other membersof our Board of Directors, individuals
from our Management Team, including
our Chief Sustainability Officer, andrepresentatives from Investor Relations,
Corporate Sustainability and otherinternal groups met to discuss ESG
issues with our shareholders.

Inquiries regarding our carbon-neutrality
programs, our commitment to the Science
Based Targets initiative (SBTi), the ability
to adequately monitor Scope 3 emissions,focus on emerging regulatory requirements
such as the EU Taxonomy and Corporate
Sustainability Reporting Directive (CSRD),
increased reporting transparency on gender
pay differential, increased disclosure on
Diversity, Equality and Inclusion (DE&I) metrics
and aligning ESG goals with compensation.

The Board of Directors reconfirmed our
mid- and longer-term ESG goals andapproved our 2023 Annual Incentive Plan
(AIP) with the ESG scorecard. Continued toalign with SBTi by assessing our Scope 3
emissions. Updated supplier questionnaires
to determine NXP's upstream Scope 3
emissions and began to prepare for
emerging regulatory requirements.

Conducted supply-chain socialresponsibility audits (all of which were
onsite) and collaborated with industry
peers through the Responsible Business
Alliance Validated Assessment Program(VAP).

Top three supplier audit nonconformances:
Freely Chosen Employment, Emergency
Preparedness and Working Hours.

Continued to close Supplier Corrective
Action Plans.

Our annual Winning Culture Survey
captures the sentiment of teammember engagement as it evolves.
In 2023, NXP surveyed all NXP teammembers and additional categories
and statements were added in theareas of innovation, growth, ethics andsustainability aligning with enterprisefocus areas.

Ninety percent of NXP team members
provided feedback in the 2023 Winning
Culture Survey. Results were extremely
positive, with the percentage of favorability
for all categories above the 75th percentile
technology benchmark. The largest category
increases were in engagement and growth,with 70% of team members being highly
engaged. Opportunity areas emerged aroundrisk-taking, process effectiveness and teammember feelings of belonging.

Several initiatives were launched in 2023
to support feedback received from NXP
team members, including a refresh of ouronboarding process, increasing our ERG
footprint by establishing new chapters,
conducting Growth Week (described on
our Team Member Engagement webpage)and holding an Innovation Summit. In early
2024, we plan to identify areas where risktaking and process effectiveness can be
improved.

Completed the new Communication
on Process questionnaire on corporate
action and performance related to the
Ten Principles of the UN Global Compact
and the Sustainable Development Goals.

Increased due diligence of environmental
risks within the supply chain.

Continued to increase our efforts to engage
with our supply chain to implement asustainable environmental program.
Created a link between the UN's Sustainable
Development Goals (SDGs) and NXP's ESG
Program.

Conducted proactive outreach with
our major active shareholders and hadinteractive discussions with those who
had specific ESG requests.

ē Product Stewardshipē Team Members

Engagement

This Report includes additional disclosureson DE&I.

Increased supplier training, with a focus
on NXP's priority requirements and the top
three nonconformances.

Introduction: Stakeholder Engagement
ē Introduction
ē A Letter From Our CEO
ē An ESG Message From Our

2023 Sustainability Stakeholder Engagement Results
Stakeholder

Chief Sustainability Officer

ē 2023 ESG Highlights
ē About This Report
Engagement
ē Stakeholder
Stakeholder Engagement

ē Sustainability Strategy
ē Our Business

Verité

ē Product Stewardshipē Environment, Healthē Team Members
ē Social Responsibility

ē Data and Indicesē Appendicesē Forward-Looking

Statements

13

NXP Corporate Sustainability Report

Feedback

Outcomes and Follow-Up

Conducted third-party audits on social
responsibility, supported by consultationand collaboration, to review NXP’s Social
Responsibility program. Supported
capacity-building in NXP's Social
Responsibility programs at NXP sites
and in the supply chain.

Continuous-improvement opportunities for
supply-chain compliance and capacitybuilding.

Continued to strengthen supply-chain
compliance and supplier capacity-building
while also advancing NXP’s Auditable
Standards for Social Responsibility.

Increased transparency to the migrantworker supply chain.

Conducted due-diligence exercises
relating to the recruitment of migrant
workers and the supply chain for
migrant labor.

World Semiconductor Council (WSC)

Chaired the Responsible Sourcing andthe Health and Safety workgroups,
and attended WSC meetings, several
workgroup meetings and various expert
calls.

Used the Cumulus database's mapping
capabilities to better understand thecomplexities of multi-tiered labor
recruitment in the supply chain and how
to reduce the risks associated with this typeof recruitment.
Together with Verité, NXP provided training
to the graduating class of vocational
schools in Indonesian villages. The training
focused on their rights as potential migrant
workers. The school faculties welcomed theengagement activity.

Supported engagement with vocational
schools and helped conduct awarenesstraining for students in schools thatare a recruitment source for migrant
workers.

and Safetyē GovernanceEngagement

Best practices for responsible sourcing ofminerals and Health and Safety practices.
Need for a follow-up of the voluntary
perfluorinated compound (PFC) emissionreduction program. Discussed the industrywide challenges of polyfluoroalkyl substances(PFAS) with governments and authorities.

Continued our application of bestpractices to advance our Health and
Safety programs. Kept track of legal
developments, including PFAS, and alignedwith other industry initiatives. Published an
update in the WSC joint statement.

Sustainability
Strategy

Prioritizing ESG issues for a moresustainable world

Sustainability Strategy: Overview
ē Introduction
ē Sustainability StrategyēēēēOverview

Approach
Goals

Governanceē Our Businessē Product Stewardshipē Environment, Healthand Safetyē Team Members
ē Social Responsibility
ē Governanceē Data and Indicesē Appendicesē Forward-Looking

Statements

15

NXP Corporate Sustainability Report

A lot has changed in the 17 years since our founding, in 2006. There is greaterawareness, inside our company and throughout our stakeholder community,of how ESG can strengthen us as a corporation, hold us more accountable
and make our business more transparent.

We endeavor to provide a safe and healthy working environment, to use resources
effectively and efficiently and to be accountable and transparent regarding theimpacts of our activities. We also strive to exceed existing standards and stakeholder
expectations and actively contribute to industry best practices.

Our efforts to promote sustainability have yielded positive results. We’ve achieved
reductions in emissions and now use more renewable electricity and recycle moreof our water and waste than we did a decade ago.

PolicyOur commitment to sustainability goes beyond how we use resources like energy
and water, by addressing how we treat people, too. We are committed to ensuringa safe and healthy workplace for our team members, and are proud to report our
injury rates remain among the lowest in the industry.
On the topic of human rights, our Social Responsibility Team has helped guide ouractions and decision-making for more than ten years. In 2023, we reviewed andupdated the NXP Human Rights Due Diligence System, which provides clear guidancefor conducting human-rights due diligence across the value chain of our business.
Also in 2023, we formed the Human Rights Working Group – a cross-functional
internal team with representatives from Legal, Human Resources, Procurement, Trade
Compliance and the Sustainability Office – to develop a strategic plan for addressing
the ongoing changes in regulatory requirements and stakeholder expectations as
they relate to human rights.
We have grown considerably since 2006 and continue to align with new challenges
and embrace new opportunities. Our current focus is on integrating sustainability
initiatives into our business and leveraging the many technologies we develop to
enable a more sustainable world.
We view the future with optimism, while maintaining a clear-eyed understandingof the challenges brought on by rapid technological change. We are confident that,by furthering our legacy of sustainable innovation, and continuing to apply ourtechnologies in ways that help advance global sustainability, we can shape thefuture and inspire people, while also positioning ourselves for sustained success.

We work diligently to ensure that we approach our business from an ESG pointof view while delivering long-term value for our stakeholders. Our Sustainability
Policy influences the way we manage our company and the way we interact
with society at large.

NXP Taiwan won first place in the ESG Integrated Performance/Foreign
Enterprise/Excellent Category at the 19th Annual ESG Award Ceremony,organized by Global Views Monthly in 2023. The judges recognized
NXP Taiwan for its sustainability strategy, low-carbon transition andperformance across ESG topics. NXP Thailand was also the first runner
up for the "Outstanding in Corporate Governance" Award.

Sustainability Strategy: Approachē Introduction
ē Sustainability StrategyēēēēWe have a long-standing commitment to operational sustainability, underscoredby a history of continuous performance improvements. Below, we outline our ESG
mission and the key components of our longer-term sustainability strategy.

Overview

Approach

ESG Mission: Advancing a More Sustainable World

Governance

Strategy

Guiding Principles

Innovation

Innovate advancementsthat enable a better,safer, more secure andmore sustainable world.

Push boundaries and explore
new approaches to develop
innovative and sustainableproducts and solutions.

Environmental

Optimize our use ofresources and thebeneficial social impacts
associated with ouroperations.

Pursue continual
improvements to protect
our planet.

Leverage our global andincreasingly diverse
team to actively drive oursustainability mission.

Respect human rights andpromote an ethical, safe andhealthy work environment.
Foster an environment oftrust and respect, where
team members collaborate
to drive innovation and areable to contribute to theirfull potential.

Goals

ē Our Businessē Product Stewardshipē Environment, Healthand Safetyē Team Members
ē Social Responsibility
ē GovernanceSocialē Data and Indicesē Appendicesē Forward-Looking

Statements

GovernanceCollaborate with our
stakeholders on global
sustainability initiatives.
Ensure accountability
and build trust throughtransparency in ourbusiness practices andoperations.

Proactively assess risk andbuild resilience throughrobust governance systems,
including appropriate goals
and processes.

Green Innovation BondOn April 29, 2020, NXP became one of the first semiconductor companies to issue
a green innovation bond, raising $1 billion in proceeds for climate-related andenvironmental initiatives for both R&D and other green projects. Since then, we haveissued two more such bonds — one on May 4, 2021 for $1 billion and one on May 16,
2022 for another $1 billion. All the proceeds from these offerings are allocated to Eligible
Green Projects defined in our Green Innovation Bond Framework, which aligns with the
UN Sustainable Development Goals (SDGs). For each of our green innovation bonds,
we have issued a corresponding report: 2020, 2021 and 2022.

ESG Focus Areas

In 2023, NXP updated our assessment to determine whether we are still prioritizing
the most material sustainability topics1. Our assessment process included inputs
from external and internal stakeholders as well as our executive management team.
The assessment also includes industry-relevant sustainability standards,
ESG rating reports, peer disclosures, research papers and other relevant documents
related to impacts, risks and opportunities of the semiconductor industry.
The outcomes of the update didn't result in substantial changes to NXP's ESG focus
areas. The following table includes the list of our priority topics.
Environmental

SocialGovernanceBusiness

Climate-Change
Mitigation andEmissions

Employee Healthand Safety

Business Conduct

Sustainable
Products

EnergyManagement

Human Rights

Corporate
Governance

Water
Consumption
and Efficiency

1

16

NXP Corporate Sustainability Report

The terms "materiality" and "material" in this Report and other ESG and sustainability-focused disclosures differ
from the same terms used in disclosures for securities or other laws.

Sustainability Strategy: Approachē Introduction
ē Sustainability StrategyēēēēOverview

Approach
Goals

Sustainable Development Goals

Aligning with the applicable UN Sustainable Development Goals (SDGs) helps NXP
create a foundation for shaping worldwide economic progress in harmony with social
justice. NXP reports on the measures implemented for relevant goals and where ourbusiness model can contribute to realizing the goals. The following table lists where
information related to the SDGs is located in this Report.

Governanceē Our Businessē Product Stewardshipē Environment, Healthand Safetyē Team Members
ē Social Responsibility
ē Governance

Ensure healthy lives and promote well-being for all at all ages

• Environment, Health and Safety: Health and Safety• Team Members: Compensation and Benefits, Team-Member Retention• Social Responsibility: Human Rights, Supplier Engagement• Data and Indices: ESG Performance, SASB Index, TCFD Index

Build resilient infrastructure, promote inclusive and sustainableindustrialization and foster innovation• Our Business: Sustainable Product Solutions

Ensure availability and sustainable management of waterand sanitation for all

Make cities and human settlements inclusive, safe,
resilient and sustainable

Ensure access to affordable, reliable, sustainable and modern
energy for all

Ensure sustainable consumption and production patterns• Environment, Health and Safety: Environment Overview, Water• Social Responsibility: Human Rights, Supplier Engagement• Our Business: Sustainable Product Solutions

ē Data and Indicesē Appendicesē Forward-Looking

Statements• Our Business: Sustainable Product Solutions• Environment, Health and Safety: Environment Overview, Emissions, Energy• Data and Indices: ESG Performance, TCFD Index• Our Business: Sustainable Product Solutions• Product Stewardship: Environmental Product Compliance,
Responsible Mineral Sourcing• Environment, Health and Safety: Environment Overview, Waste,
Hazardous Materials

Promote sustained, inclusive and sustainable economic growth,
full and productive employment and decent work for all

Take urgent action to combat climate change and its impacts• Team Members: Overview, Team-Member Engagement, Diversity, Equality
and Inclusion, Compensation and Benefits, Development and Growth,
Future Talent, Team-Member Retention• Social Responsibility: Human Rights, Supplier Engagement, Supplier
Engagement
17

NXP Corporate Sustainability Report• Our Business: Sustainable Product Solutions• Environment, Health and Safety: Environment Overview, Emissions, Energy• Data and Indices: Scope 1 Chemicals List, TCFD Index

Sustainability Strategy: Goals
ē Introduction
ē Sustainability Strategy
ēēēē

Our ESG mission is to enable a better, safer, more secure and more sustainable world
through innovation. That mission has given rise to a series of goals that inform ourefforts and enable us to gauge our performance and celebrate our accomplishments.

Overview

Approach

Goals

Governanceē Our Businessē Product Stewardshipē Environment, Healthand Safetyē Team Members
ē Social Responsibility
ē Governanceē Data and Indicesē AppendicesInnovation

Environment

SocialGovernance

Design and manufacture technologythat positively impacts the planetand society

Carbon neutral
by 20352

25% women in R&D
by 2025

Work with our supply-chain partners
to reduce their environmental footprint

Reduce carbon emissions
by 35% in 2027 (2021 baseline) andachieve 50% renewable electricity3

50% underrepresented minorities
in our US workforce

Integrate ESG into our business so
we can foster ownership andaccountability

Develop higher-performing, moreenergy-efficient products

ē Forward-Looking

Statements

Optimize natural resources by 2027
• 50% renewable energy• 60% of wastewater recycled• 90% of waste recycled

NXP’s strategic approach is to reduce its Scope 1 and Scope 2 emissions by 2035 by prioritizing the implementation oftechnically and socio-economically feasible solutions. We intend to offset any remaining Scope 1 and Scope 2 emissions.
3
We aim to achieve our renewable electricity goal through power purchase agreements, the use of unbundled
renewable energy certificates (iRECs) and, in select cases, self-generation.
2

18

NXP Corporate Sustainability Report

Zero tolerance of forced laborand human-rights abusesZero workplace injuries

Sustainability Strategy: Goals
ē Introduction

Progress Toward Our ESG Goals
Goals

Progress in 2023

Design and manufacture technologythat positively impacts the planetand society

We conducted a thorough review of the entire portfolio, in order to classify and assess how our
products contribute to sustainability. As part of that process, we identified ways to design andmanufacture technology so it has a positive impact on the planet and society.

ē Our Business

Develop higher-performing, moreenergy-efficient products

We strive to increase the energy efficiency of our products. With each new generation, we aim
for higher performance in a smaller footprint, with the goal of saving on raw materials andgreenhouse-gas (GHG) emissions.

ē Product Stewardship

Carbon neutral by 20354

We decreased our absolute Scope 1 and 2 emissions by 24% compared to our baseline year of 2021.

ē Environment, Health

Reduce carbon emissions by 35%
in 2027 (2021 baseline)

We decreased our absolute Scope 1 and 2 emissions by 24% compared to our baseline year of 2021.

50% renewable electricity by 2027

We used 39% renewable electricity, an increase of 4 percentage points compared to 2022, and anincrease of 22 percentage points compared to 2014.

60% of wastewater recycled by 2027

We recycled 51% of wastewater, an increase of 2 percentage points compared to 2022, and anincrease of 15 percentage points compared to 2014.

90% of waste recycled by 2027

We recycled 86% of waste, an increase of 3 percentage points compared to 2022, and an increaseof 13 percentage points compared to 2014.

25% women in R&D by 2025

There are 20% women in R&D, an increase of 1 percentage points compared to 2022.

50% underrepresented minorities
in our US workforce

There are 52% underrepresented minorities in our US workforce, an increase of 1 percentage points
compared to 2022.

Zero tolerance of forced labor andhuman-rights abuses

We increased the number of supply-chain due-diligence audits, and we reviewed and updated the
NXP Human Rights Due Diligence Management System to reflect recent changes in the regulatory
landscape for human rights and prepare NXP for further changes in this area.

Zero workplace injuries

We maintained a low Total Case Incident Rate (TCIR) of 0.10, and remain well below semiconductorindustry averages.

Work with our supply-chain partners
to reduce their environmental
footprint

We surveyed our top-tier suppliers, to gauge their environmental footprints, and included theirperformance in our supplier rating to derive action plans.

Integrate ESG into our businessso we can foster ownership andaccountability

We continued to drive the company wide ESG Program involving all functions and with clear roles
and responsibilities, embedding sustainability in all the relevant areas of our business.

ē Sustainability StrategyēēēēOverview

Approach

Goals

Governance

Innovationand Safetyē Team Members

Environmental

ē Social Responsibility
ē Governanceē Data and Indicesē Appendicesē Forward-Looking

SocialStatements

Governance

4

19

NXP Corporate Sustainability Report

By 2035, NXP will have implemented technical solutions to reduce its Scope 1 and Scope 2 carbon emissions. NXP intends to offset any remaining Scope 1 and Scope 2 emissions.

Sustainability Strategy: Goals
ē Introduction
ē Sustainability StrategyēēēēOverview

Approach

Goals

Governanceē Our Business

Sustainability Scorecard for 2023

We believe that having a diverse workforce makes our operations stronger.
We recognize that our operations have an impact on the environment and arecommitted to reducing that impact, by being good stewards of our planet andhelping to create a more sustainable world.

measure our year-on-year progress toward our long-term aspirations relating topeople and the environment. We encourage all team members to participate inthis progress and, as a result, have made the scorecard part of the AIP for all teammembers. The sustainability component has a weighting of 20% in our AIP.

Since 2022, so as to reinforce our corporate commitment to these ideals, we haveadded a sustainability component to our short-term Annual Incentive Plan (AIP).
As part of this effort, our Human Resources and Compensation Committee (HRCC)
introduced a sustainability scorecard, which contains multiple metrics intended to

The following table lists the goals identified in our 2023 annual sustainability scorecard,
explains why we chose each goal and describes the progress we've made towardmeeting each goal within the past twelve months.

ē Product Stewardshipē Environment, Healthand Safetyē Team Members

2023 Sustainability Scorecard Goal

Why Chosen

Achievement

2023 Performance

Women Representation
Increase women representation to 26.75% of
overall indirect labor (IDL) population by
year-end 2023

Inclusion is a foundational part of our values oftrust and respect. We recognize the importanceof representation, value diversity, equality
and inclusion, and respect the unique talents,
experiences, backgrounds, cultures andideas of our team members. To illustrate ourcommitment and make measurable progress,
we established an aspirational goal for women
representation of 30% by 2025 with interim
milestones of achievement.

As of year-end 2023, women represented 25% of
our indirect labor (IDL) population, which was below
our target for the year. This result was impacted bysignificantly lower hiring activity than planned in
2023. Though we did not meet our intended target,
we were able to grow the population of womenin indirect labor by 5%, higher than the overall 3%
population growth rate. Of those team membersthat we hired during 2023, 30% were women which
was a year over year improvement.

Not Achieved

Retention
Retain global team members at a rate of ≥90%
worldwide by year-end 2023

Retention is crucial for both team members
and NXP as it promotes stability and continuity
within the organization, leading to increased
innovation, productivity and efficiency. Retention
also reflects a positive work culture andemployee morale, as it demonstrates that NXP
values and invests in our workforce, leading tohigher job satisfaction and motivation.

Our 2023 retention rate was 93.5% globally,a marked improvement over previous years.
This is a strong reflection of our focus on culture,
growth, development and engagement.

Achieved

Well-Being
Drive well-being strategy, network and tools
focused on physical, emotional and financial
well-being; design and implement team-member
feedback survey to measure progress of wellbeing initiatives

At NXP, creating an innovation and growthculture means focusing on the personal growthof our team members from every perspective,
including physical, mental, emotional andfinancial wellness. We aim to achieve this goal
through our voluntary well-being program, whichis uniquely designed to fit the personal needs
and goals of our entire population.

We implemented a global well-being program
at NXP focusing on team member well-being.
Engagement in the program was higher than
expected across all regions. Feedback was positive
as measured by our Winning Culture Survey andabove the external benchmark.

Achieved

ē Social Responsibility
ē Governanceē Data and Indicesē Appendicesē Forward-Looking

Statements

20

NXP Corporate Sustainability Report

Sustainability Strategy: Goals
ē Introduction
ē Sustainability StrategyēēēēOverview

ApproachGoals

2023 Sustainability Scorecard Goal

Why Chosen

Achievement

2023 Performance

Reduce Carbon Emissions
Reduce carbon emissions to ≤1,036 kTons
CO2e by year-end 2023 (Scope 1 and 2,
IPCC 2006 standard)

Our roadmap to carbon neutrality includes
annual emission-reduction targets to put NXP
on a clearly defined path to reduce emissions inline with the goals of the Paris Agreement.

As of year-end, we exceeded our carbon emissions
reduction goal and reduced our absolute carbon
emissions to 842 kTons CO2e (IPCC2006). This
result was due in part to investments in equipment
and processes related to reducing emissions.
However, it was also impacted by lower than
expected production levels. Considering the effect of
unexpected lower production, the HRCC adjusted thescoring of this goal to target level of performanceversus the above target performance that wasachieved on an absolute basis, determining thattarget level performance was achieved, but notexceeded.5

Achieved

Renewable Electricity
Increase use of renewable electricity
usage to >39%

Because we have global manufacturing
operations, including wafer fabrication
and assembly and test, we recognize theimportance of using renewable electricity topower our facilities. Renewable electricity
is also an important component of ourroadmap to carbon neutrality.

As of year-end, we achieved 39% usage of
renewable electricity which is on target for this year.
This achievement is driven by additional purchasesof green electricity in 2023 in multiple manufacturing
sites.

Achieved

Water Recycling
Recycle an average 49.8% of waterin manufacturing

We acknowledge water as an important partof our production processes and understandthat, as a good steward, we should limit our use
of water and seek to reuse it where possible.
Since it's not currently technically feasible todrastically reduce the amount of water we
use in manufacturing, we focus instead on
increasing our recycling rate, so we use lessincoming water.

As of year-end, we recycled 51% of the water
we used as a result of projects initiated acrossour sites to reach our 2027 target.

Achieved

Sustainable Technology
Set a baseline for NXP’s sustainability productportfolio by establishing the level of eligibility
according to EU taxonomy of at least 80%of the NXP portfolio and mapping against
the NXP sustainability framework

One of the key pillars of NXP’s sustainability
strategy is our product portfolio. Going forward,
NXP will need to provide a quantifiable measureof how our products impact sustainability
objectives and how we invest
our capital and operating expenditures
regarding sustainability.

We were successful in evaluating our products
for their sustainability contribution, however it was
not completed by year end. Additionally, productportfolio mapping to the EU taxonomy was slightly
below the 80% target.

Not Achieved

Governanceē Our Businessē Product Stewardshipē Environment, Healthand Safetyē Team Members
ē Social Responsibility
ē Governanceē Data and Indicesē Appendicesē Forward-Looking

Statements

521

NXP Corporate Sustainability Report

For the year 2023, this metric includes our Scope 1 and 2 emissions using the Intergovernmental Panel on Climate Change (IPCC) 2006 methodology. For all other reporting and our future goals, we use the IPCC 2019 methodology.

Sustainability Strategy: Goals
ē Introduction
ē Sustainability StrategyēēēēOverview

Approach

Goals

Governanceē Our Businessē Product Stewardshipē Environment, Healthand Safetyē Team Members
ē Social Responsibility
ē GovernanceRoadmap to Carbon Neutrality

Our goal to be carbon neutral by 2035 presents multiple layers of complexity, giventhat we use renewable and non-renewable electricity, fossil fuels, perfluorinatedcompounds (PFCs) and heat-transfer fluids (HTFs). The picture becomes even more
complex when we consider increases in semiconductor production which, in turn,increase our GHG emissions. In 2022, we committed to setting Science Based Targets(SBTs). We compiled the required data and defined the targets in 2023, and will begin
the validation process with Science Based Targets initiative (SBTi) in 2024.
By 2027, our mid-term goal is to reduce Scope 1 and 2 absolute emissions by 35%
from a 2021 baseline. To reach our mid-term goal, we will address Scope 1 reduction byfocusing on designing and/or installing equipment to reduce emissions, substituting
chemicals and optimizing manufacturing processes. Since electricity is our largest
GHG contributor, another of our mid-term goals is to increase our renewable electricity
use to 50% and thereby decrease our Scope 2 emissions. To help achieve our 2027
goal, we created a task force to identify opportunities for additional reductions inemissions. We have a solid roadmap in place for achieving our mid-term, 2027 goals.
Our ability to achieve our 2035 goal will depend on the availability of renewableelectricity in some of the countries where we operate, so we can reduce our Scope
2 emissions further, and on the effectiveness of the technical solutions we plan toimplement to reduce our Scope 1 emissions.

In 2024, we will continue to prepare for the EU Corporate Sustainability Reporting
Directive (CSRD), including the requirement that we publish a Climate Transition Plan.
We intend to publish a Climate Transition Plan consistent with CSRD requirements
no later than 2026. As part of our Climate Transition Plan, we have set goals for our
Scope 3 emission reduction initiatives and plan to have our climate goals validated
by the SBTi in 2024. This process is underway and the outcome is necessary to finalizea Climate Transition Plan. Our progress will be reported in future Reports.

ē Data and Indices

Scope 1 and 2 Key Decarbonization Leversē AppendicesElectricity

PFCs

HTFs

Increase Percentage of Renewable Electricity

Replace or Minimize Use of GHGs

Substitute Chemicals to Reduce HTF Emissions

Optimize Building Operations and Product-Testing
Processes

Optimize Processes

Design and Purchase New Equipment to Prevent
EmissionsPower Down Equipment When Not in Use

Reduce Leakage

Phase Out Non-Critical Uses of HTFs

Use Efficient Lighting Technologies and Schedules

Install PFC-Abatement Equipment

ē Forward-Looking

Statements

622

We take a three-pronged approach to carbon reduction: 1) reduce, remove or
replace chemicals with a high global-warming potential (GWP) in our manufacturing
processes, 2) lower our absolute and normalized energy consumption and 3) execute
our carbon-free energy transition plan. This approach helps us achieve carbon
neutrality while reducing or even eliminating our carbon offsets in the future.

NXP Corporate Sustainability Report

The SBTi provides guidance to companies regarding their efforts to reduce emissions in line with the goals of the Paris Agreement. https://sciencebasedtargets.org

Sustainability Strategy: Governanceē Introduction
ē Sustainability StrategyēēēēOverview

Approach
Goals

Governanceē Our Business

Our Sustainability Strategy is aligned with and incorporated into the company’s longterm business strategy. NXP's Board of Directors has ultimate oversight responsibility
for ESG matters. The full Board focuses on significant ESG matters, with Board
Committees undertaking oversight of ESG issues relevant to their responsibilities andthen integrating committee work on these issues in their reports to the full Board. NXP
has had third-party consultants with ESG and sustainability expertise present to theBoard of Directors to help the Board make business decisions that best align withsustainable development.

ē Environment, Health

ESG Program oversight is delegated to the Nominating, Governance and Sustainability
Committee, which oversees integration of a broad set of ESG considerations intobusiness functions. Specific aspects of ESG oversight are delegated to the Auditand Human Resources Compensation Committees for ESG matters within their coreareas of expertise.

ē Team Members• Nominating, Governance and Sustainability Committee – Oversight of policies
and practices relating to significant ESG issues

ē Product Stewardshipand Safety

ē Social Responsibility
ē Governanceē Data and Indicesē Appendicesē Forward-Looking

Statements- Oversee policies and practices related to climate and sustainability initiatives- Review sustainability initiatives and goals including progress toward achieving
those goals- Review and approve the annual Corporate Sustainability Report as wellas other ESG-related reports requiring Board-level oversight- Review stakeholder feedback related to sustainability on an annual basis• Audit Committee – Oversight of financial disclosure processes and controls,
and internal and external assurance over ESG reporting- Oversee disclosure controls and procedures over ESG disclosuresand any assurance being provided by independent auditors- Ensure NXP prepares appropriately for legislative and regulatory
developments affecting ESG reporting in financial reports

23

NXP Corporate Sustainability Report• Human Resources and Compensation Committee – Oversight of human-capital
policies and programs, DE&I and compensation, including the alignment of ESG
goals to incentive-pay programs- Oversee alignment of Sustainability Strategy with compensation programs- Select from goals identified as strategic ESG goals by the Nominating,Governance and Sustainability Committee- Incorporate ESG goals into compensation programs and design such programs,
if relevant

The Nominating, Governance and Sustainability Committee receives quarterly
updates from representatives of the ESG Management Board and, in turn, reportson these efforts in plenary meetings of NXP’s Board of Directors.
The CEO and the NXP Management Team, together with and under the supervision
of NXP’s Board of Directors, are responsible for implementation of NXP's sustainability
strategy, policies and goals.
NXP's ESG Management Board, which is comprised of Management Team members
and other senior leaders, oversees the implementation of sustainability strategy
and policy and ensures appropriate resourcing. The ESG Management Board ischaired by our General Counsel and Chief Sustainability Officer and supported by
our Chief Financial Officer, Chief Strategy Officer, Chief Technology Officer, Chief
Human Resources Officer and Chief Operations and Manufacturing Officer. The ESG
Management Board meets regularly to ensure our ESG performance is in line with ourstrategy and goals.

Sustainability Strategy: Governanceē Introduction

Eight Pillars of NXP's ESG Programē Sustainability StrategyēēēēOverview

Approach
Goals

Governance

NXP ESG Governance Model

Sustainable Manufacturingē Our Businessē Product Stewardshipē Environment, Health

Board of Directors
Ultimate ESG Oversightand Safety

Peopleē Team Members
ē Social Responsibility
ē GovernanceSupplier Management

Management Team ESG
Management Board
Chaired by Chief Sustainability Officerē Data and Indices

Strategic Business Model
Reportingē Appendicesē Forward-Looking

Statements

NXP ESG Program

Customers
Brand and Reputation
Governance24

NXP Corporate Sustainability ReportOur Business

Advancing a better, safer and moresustainable world

Our Business: Overview
ē Introduction
ē Sustainability Strategy
ē Our Businessē Overview
ē Total Quality
ē Sustainable Product

Advancing a Better, Safer and More Sustainable WorldNXP is pushing boundaries and building solutions that advance the capabilities ofpeople, organizations and the world at large. We design purpose-built, rigorously
tested technologies that enable devices to sense, think, connect and act intelligently
to improve people's daily lives.

Solutionsē Product Stewardship+60~34,200+30$13.28 B~9,500ē Environment, HealthYears of
Combined
Experienceand Expertise

Team
Members

Countries
Worldwide

2023
Revenue

PatentFamilies
Owned

and Safetyē Team Members
ē Social Responsibility
ē Governanceē Data and Indicesē Appendicesē Forward-Looking

Statements

26

NXP Corporate Sustainability Report

NXP Semiconductors N.V. (NASDAQ:
NXPI), headquartered in Eindhoven,
the Netherlands, is a leader in secureconnectivity solutions for embedded
applications in the following end
markets: Automotive, Industrial andInternet of Things (IoT), Mobile andCommunications Infrastructure.
We believe that technology can help us
get things done faster – in ways that areeasier, more reliable, safer and use lessenergy – and can create opportunities
for more people to participate inbusiness, culture and community.

Whether we reduce the amount ofenergy consumed by smart devices,extend the range of batteries usedby electric vehicles (EVs) or optimize
commercial energy use, our collective
efforts contribute to a more sustainable
future. This winning strategy enables us
to capture growth opportunities in theend markets we focus on: Automotive,
Industrial and IoT, Mobile andCommunications Infrastructure.

Our Business: Overview
ē Introduction
ē Sustainability Strategy
ē Our Businessē Overview
ē Total Quality
ē Sustainable Product
Solutions

End Markets
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.

ē Product Stewardshipē Environment, Healthand Safety

Industrial and IoT

ē Governance

We power optimal performance across industries byautomating intelligence and increasing security at theedge 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 withthe cloud. We also enable machine learning, so devices
can be equipped to sense, think and act.

ē Data and Indices

Mobileē Team Members
ē Social Responsibility

ē Appendicesē Forward-Looking

Statements

We support today’s on-the-go lifestyle with innovative
solutions, such as the mobile wallet, so consumers cansecurely connect their devices to the world around them.
With technologies like secure elements, end-to-end
services and ultra-wideband (UWB) technology, weenhance 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.
27

NXP Corporate Sustainability Report

NXP’s Unrivaled Technology Portfolio for the Secure Edge
Sense

Think

Connect

Act

Everything
Aware

Everything
Smart

Everything
Connected

Everything
Efficient

Everything safe and secureEasy–to–implement,
scalable system solutions

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.

Our Business: Overview
ē Introduction
ē Sustainability Strategy
ē Our Businessē Overview
ē Total Quality
ē Sustainable Product
Solutionsē Product Stewardship

ATMC

NijmegenAustinCopper Technologies

Aluminium Technologies

Tianjin
KaohsiungOak Hill

BangkokAustinAluminium Technologies

ē Environment, Healthand Safetyē Team Members
ē Social Responsibility
ē Governanceē Data and Indicesē Appendicesē Forward-Looking

Statements

SSMC
Chandler, GaN
Chandler
Aluminium Technologies

28

NXP Corporate Sustainability ReportSingapore
Aluminium Technologies

Kuala Lumpur

Wafer Manufacturing Sites
Assembly and Test Sites

Our Business: Total Quality
ē Introduction
ē Sustainability Strategy
ē Our Businessē Overview
ē Total Quality
Qualityē Sustainable Product
Solutions

LRQA
Certified
ISO 9001ANAB
ANSI National Accreditation Board
Accredited
ISO/IEC 17021-1
Management Systems Certification
Body

LRQA
Certified
IATF 16949-2016

ē Environment, Health

We are committed to operating according to stringent, internationally recognized
requirements for quality and reliability. All our manufacturing sites are ISO 9001
certified and our sites that manufacture automotive products are IATF 16949
certified. See the Quality Certifications website for more details.

ē Team Members

Our Total Quality Mindset aligns our thinking and approach, flowing from top
management to every NXP team member.

ē Product Stewardshipand Safety

ē Social Responsibility
ē Governanceē Data and Indicesē AppendicesTotal Quality VisionFirst–time–right development, designs and qualifications
Deliver zero defects to our customers
Provide flawless customer support

ē Forward-Looking

Statements

29

NXP Corporate Sustainability Report

We believe Total Quality is a critical component of how we operate. We demonstrate
our commitment to Total Quality by continuing our journey toward zero defects andexceptional customer support. This includes bringing innovative products to market
on time while improving our responsiveness to customers, lowering our quality
incident rate and enhancing our quality standards. We recognize that incorporatingthese objectives enables NXP to use our quality and reliability to drive corporate
growth. Ultimately, our goal is to exceed customer expectations.

Our Business: Sustainable Product Solutions
ē Introduction

Product Portfolio

ē Product StewardshipOver the past twelve months, we conducted a thorough review of the entire portfolio,
with the aim of classifying and assessing each NXP product on its contribution toenvironmental sustainability. The review helped us perform a baseline analysis of theportfolio and will help guide our strategy for future portfolio choices and investments.
As part of the review, we considered the portfolio features and criteria that will
support sustainability while also meeting our company’s growth vectors, brand andpurpose. Our Sustainable Portfolio framework also takes into account the EU Taxonomy
Regulation, which classifies economic activities in terms of their sustainability. As aresult, the NXP Sustainable Portfolio includes an initial assessment of the potential
economic activities that are relevant to us and demonstrates our commitment todesigning and manufacturing environmentally friendly products.

ē Environment, Health2023 Product Solutions

ē Sustainability Strategy
ē Our Businessē
ēēOverview

Total Quality

Sustainable ProductSustainable
Product
Solutionsand Safetyē Team Members
ē Social Responsibility
ē Governanceē Data and Indicesē Appendicesē Forward-Looking

Statements

At the core of our solutions is our commitment to our global community. We
understand that smart, innovative technologies can help bring us all to a moresustainable future. For this reason, we develop solutions aimed at major global needs– from energy efficiency and greener mobility to food security. This section highlights
some of the ways we've addressed these global needs, by introducing innovations
across key markets.

Automotive – Connected Experience; Using Less and Saving MoreElectric Vehicles (EVs) have become a major part of the transition to greener mobility.
Efficiency is a vital part of optimizing EV applications, such as in battery management,
power conversion and distribution, which helps prolong the EV range and extend theuseful lifetime of EV components.
High-precision measurements in NXP’s MC33775 Battery Cell Controller enable
automakers to safely charge and extract more power from EV batteries. Announced
in 2023, this solution allows automakers to use fewer resources by designing in smaller
batteries that achieve the same range.
The FS26 System Basis Chip, part of an extensive power-management IC family alsoannounced in 2023, provides ultra-low power modes and advanced system wake-up
mechanisms to safety-critical applications, which can save energy in EV applications
while keeping everyone safe on the road.

30

NXP Corporate Sustainability Report

NXP provides EV solutions that are used throughout the electric powertrain, and ourconnected EV system solutions put carmakers on the fast track to building greener
innovations. Our EV solutions are designed to help improve energy management,
range and efficiency, and to enhance safety through software updates that are
seamlessly connected to the cloud and delivered directly to the vehicle.

Smart Home – Enabling Little Actions for Big Impacts

In 2022, we introduced UWB radar for presence detection. In smart homes, presence
detection lets light, sound and other functions follow you from room to room, so you
only use energy where it's really needed.
Our Machine Learning (ML) and Artificial Intelligence (AI) solutions, supported by ouri.MX 8M Plus microprocessors, can help save energy in other, unexpected ways, too.
Our smart refrigerator system, for example, can track the freshness of fruits, vegetables
and other perishables. That helps reduce food waste and makes it easier forhouseholds to save on groceries and send less unused food to land-fills. Extend that
benefit across entire communities and there's more food available for emergencies
and humanitarian purposes and less energy used to produce and deliver food overall.

Smart City – Focusing on Efficiency

MIFARE 2GO brings mobile ticketing to the busiest cities in the world, making it moreconvenient to use public transport and access-management solutions. With MIFARE
2GO, transit agencies also benefit from reduced cash handling, decreased card
lifecycle management (less paper and plastic) and lower infrastructure costs, while
offering time savings for passengers. Public and private institutions can also increasesafety by controlling access.
At the edge of the network, in the IoT, our sustainable technologies help promoteenergy efficiency. Our Green IoT innovation enables smart farming, so it takes lessenergy to grow larger quantities of quality agricultural products. What's more, to makelogistics more environmentally friendly, we're using our expertise in mobile robotics
to help create low-power industrial drones and rovers that can be used for rapid
response and zero-contact delivery.
We're also working with other technology leaders to support the EU's plan for productsthat are more environmentally sustainable and support circular economies. For
example, our NFC chips are used to generate product histories and performanceOur Business: Sustainable Product Solutions
ē Introduction
ē Sustainability Strategy
ē Our Businessē
ēēOverview

Total Quality

Sustainable ProductSustainable
Productlogs that are readily and securely accessible to manufacturers, consumers andrecyclers, to help businesses, consumers and authorities make better, more informed
purchasing and recycling decisions.
Labels with our UCODE ICs can provide real-time updates on a given food product’s
location, within the supply chain or in retail outlets. This data, combined with intelligent
algorithms that estimate trends in demand, can help suppliers avoid the kinds ofoverproduction and overstocking situations that lead to food waste.

ē Environment, Health

Our JCOP® ID 2 secure eID solution is designed to help make personal identity
documents more secure, while also complying with the most recent governmental
requirements and supporting future changes. The JCOP ID 2 solution includes
advanced security features designed to help governments protect the lifespan of
personal identity documents.

ē Team Members

Industrial – Bringing the Health of People and Machineryto the Forefront

Solutionsē Product Stewardshipand Safety

ē Social Responsibility
ē Governanceē Data and Indicesē Appendicesē Forward-Looking

Statements

Agriculture, raw materials, manufacturing, energy grids, supply chains – in every
industrial sector, significant resources are dedicated to the creation and maintenanceof mission-critical applications. We believe predictive maintenance, which helps
keep industrial processes up and running, is an important part of using thoseresources wisely and extending product life. Our AI and ML solutions make predictive
maintenance even more seamless, by making it easier to monitor status, avoid
downtime, streamline repairs and, ultimately, keep industry moving. We recently
signed a Memorandum of Understanding (MOU) with Honeywell to help optimize theway commercial buildings sense and securely control energy consumption.
Partnering with Aigen, an agtech firm, and Au-Zone Technologies, a company
specializing in embedded technologies and computer vision, we are testing a solarpowered, medium-sized robotic platform for weed detection and management. The
aim is to reduce the use of pesticides and improve the efficiency of farms. NXP’s i.MX
8M Plus solution is being used to analyze high-resolution data from cameras, mounted
on farm equipment, to identify weeds.
We also recently announced our i.MX 91 applications processor family. Built on morethan two decades of leadership in developing multi-market applications processors,
the i.MX 91 family delivers the energy-efficient performance required for the next
generation of Linux®-based IoT and industrial applications.

31

NXP Corporate Sustainability Report

A growing number of our solutions are integrated into medical products that makehealthy living more achievable. Whether it's in a medical facility or at home, NXPenabled monitoring systems provide accurate status and alerts, which can help save
lives by delivering remote diagnostics and prompting earlier action and treatment.

Mobile – Enabling Smart Wearable Technology

Consumers around the world are increasingly comfortable with wearable devices andare using these devices to track and monitor their health and well-being. Technology
needs to keep pace with demand, delivering the right mix of battery life, precision,connectivity and security. Our i.MX RT crossover microprocessors balance highperformance with power efficiency and offer as much as three weeks of battery life
on a single charge.

Communications Infrastructure – Connecting the Dots
with Data-Center Productivity

When it comes to addressing environmental and social challenges, the importanceof data cannot be overstated. Seamless data management is crucial to solving thesechallenges – from tracking progress to evaluating impacts and making informed
predictions. Building on our deep technological expertise, we are creating solutions
that make data centers more efficient, more secure and more flexible.

Learn More

Like our customers, partners and other stakeholders, we view sustainability as ajourney. To learn more about how our latest products and solutions help support
that journey, please visit www.nxp.com for updates, news and other insights.

Product
Stewardship
Minimizing the environmental
and social impact of eachproduct we design and produce

Product Stewardship: Environmental Product Complianceē Introduction
ē Sustainability Strategy
ē Our Businessē Product Stewardship
Product
ē Environmental
Environmental ProductComplianceē Responsible Mineral
Sourcing

ē Environment, Healthand Safetyē Team Members
ē Social Responsibility
ē Governanceē Data and Indicesē Appendices

Our Approach

As an innovative and responsible manufacturer, NXP aims to prevent the use ofhazardous substances in our products. In addition, we ensure responsible sourcingof minerals to prevent the use of materials linked to human-rights abuses.

New Product Design

To address current and future requirements for compliance during the design phase, weestablished the Environmental Compliance Organization for Products (ECO-Products)
as part of the management systems for introducing new products and technologies.
Checklists of currently banned materials, as well as chemicals that may be problematicfor particular markets, are considered early in the design phase. This translates to
products that are more resilient and more marketable for our customers.

Regulatory Compliance Resources

Supplier Requirements

China RoHS

We rely on our suppliers and their subcontractors to help us identify and verify
potential substances present in the raw materials, parts and products they supply
to NXP and to use appropriate methods, such as internal design controls, declarations
and analytical testing, to ensure accuracy and completeness and attest that
information is correct to the best of their knowledge.
Suppliers must meet the requirements of the NXP ECO-Products Substance Control
for Products and Packaging specification. We require suppliers to provide material
content declarations and annual analytical test reports from third-party laboratories
certified to the ISO/IEC 17025 standard. Also, all declarations and reports must be
specific to the material's homogeneous material level.

Regulatory Compliance

Like other technology companies, NXP is subject to and complies with a host of
product regulations across multiple global jurisdictions. We also go beyond what
is required by local, regional and global laws.

33

NXP Corporate Sustainability Report

NXP anticipates that sustained stakeholder interest in product responsibility may resultin new or updated regulations and exemption lists. This, combined with the arrivalof new chemical substances, means compliance remains a challenge and we will
maintain on-going diligence. See below to learn more about NXP's efforts in this area.

Environmental Compliance Overview
EU RoHS Statement

REACH Statement
ELV Statement
WEEE Statement
EU Packaging Statement
California Proposition 65 Statement
Responsible Mineral Sourcing Overview and Reports
Product Content Search

Product Stewardship: Environmental Product Complianceē Introduction
ē Sustainability Strategy
ē Our Businessē Product Stewardship
Product
ē Environmental
Environmental ProductComplianceē Responsible Mineral
Sourcing

ē Environment, Healthand Safetyē Team Members
ē Social Responsibility
ē Governanceē Data and Indicesē Appendices

Substances of Concern in Products
SCIP Established Under the Waste Framework Directive

In 2021, NXP became subject to a new EU reporting requirement known as the"Substances of Concern in articles as such or In complex objects (Products),"or "SCIP" database reporting.
The EU Directive 2008/98/EC on Waste, commonly known as the Waste Framework
Directive (WFD), sets stringent requirements on waste management, recycling andrecovery of products manufactured in, supplied to or imported to the European
Economic Area. An amendment of the WFD (Directive 2018/851) requires companies
to provide information on articles supplied to the EU market containing Substances ofVery High Concern (SVHCs) above 0.1%. This sparked the European Chemicals Agency(ECHA) to establish the SCIP database.
The EU aims to use the SCIP database in several ways. This includes:• Decreasing the generation of waste-containing hazardous substances by supporting
the substitution of substances of concern in articles placed on the EU market,• Making information publicly available to further improve waste-treatment
operations and• Enabling authorities to monitor the use of substances of concern in articles
and initiate appropriate actions over the whole lifecycle of articles, even at
the waste stage.
At present, NXP has submitted 53 notifications, covering about 4,000 products,
to the SCIP database. These products appear in the public ECHA SCIP Database.

Other Regulations

NXP also tracks and verifies compliance with other major legislation in the
countries and regions where we operate. This includes China RoHS, California
Proposition 65, EU Directive 94/62/EC for Packaging and Packaging Waste, EU
Persistent Organic Pollutants (POP), US Toxic Substances Control Act (TSCA),US Conflict Minerals and Ozone-Depleting Substances in the Montreal Protocol.
Learn more at our Environmental Certifications website.

34

NXP Corporate Sustainability ReportProduct Stewardship: Environmental Product Complianceē Introduction
ē Sustainability Strategy
ē Our Businessē Product Stewardship
Product
ē Environmental
Environmental ProductComplianceē Responsible Mineral
Sourcing

ē Environment, Healthand Safetyē Team Members

Environmental Product Compliance
Performance
EU RoHS-Compliant Products

NXP's RoHS-compliant semiconductor devices containno more than 0.1% lead (Pb) by weight per homogeneousmaterial, unless exempt by the EU Restriction ofHazardous Substances (RoHS) Directive (2011/65/EU).
NXP’s Pb-free initiative commits to the removal of lead(Pb) from our entire product portfolio without impacting
technical specifications or customer manufacturing
processes. For many years, the majority of our Dual InLine Packages (DIPs), Single In-Line (SIL) packages andQuad Flat No-Lead (QFN) packages have been Pb-free.
While most customers have shifted to Pb-free products,

we continue to manufacture some parts that containPb for those who require it. Our customers who use NXP's
Pb-containing components in their end products are
responsible for declaring compliance status. We only
sell non-RoHS-compliant products, when required byour customers, for use in legally allowed applications.

Halogen-Free Products

Our goal is to maximize the number of products thatare free of halogens, a chemical category that includes
chlorine, bromine and antimony. The threshold for
halogen-free is set at 900 ppm at the homogeneouslevel1.

ē Social Responsibility

2023RoHS
RoHSProductProductPortfolio
Portfolio
2023

ē Governance

3.1%

1.3%

2023
Halogen-FreeProductProductPortfolio
Portfolio
2023
Halogen-Free3%

ē Data and Indicesē Appendices

95.6%

97%
Halogen-Free
Contains Halogen

RoHS-Compliant

Non-RoHS-Compliant

1

35

NXP Corporate Sustainability Report

RoHS-Compliant with Exemptions

Halogen-Free

A product is deemed halogen-free if it contains less than 900 ppm of chlorine and bromine compounds
combined by weight of homogeneous material. The halogens fluorine, iodine and astatine are not in scope.

Not Halogen-FreeProduct Stewardship: Environmental Product Complianceē Introduction
ē Sustainability Strategy

Pb-Free and Halogen-Free Products

Product
ē Environmental
Environmental ProductWe offer products that are Pb-free (also known as
lead-free) and halogen-free because we believe it
is important to develop eco-friendly products andintegrate environmental safety aspects into thelife-cycle of product development.

ē Responsible Mineral

EU REACH Productsē Our Businessē Product StewardshipCompliance
Sourcing

ē Environment, Healthand Safety

NXP products do not contain EU REACH SVHCs except
where noted in the appendix of our 2023 EU REACH
Statement, which lists the materials in our products that
may contain substances in excess of 0.1% by weight.

Together with our suppliers, we identified eight SVHCs
in excess of 0.1% by weight that may be contained insome of the materials that are used in manufacturing.
It was determined that the chemicals declared are in
their original molecular form, are contained as a small
residue within the materials and cannot be released
under normal or reasonably foreseeable conditions.
Nevertheless, we still declare these substances in excess
of 0.1% by weight for 12% of our product materials2.

ē Team Members
ē Social Responsibility

2023Pb-Free
Pb-FreeandandHalogen-Free
Halogen-FreeProductProductPortfolio
Portfolio
2023

ē Governance

2023
REACH
SVHCs
Product
Portfolio
2023
REACH
SVHCs
in in
Product
Portfolio
12%ē Appendices

93%

88%

Pb-Free andContains
Halogen-Free
Pb and Halogens

Pb-Free and Halogen-Free

2

36

NXP Corporate Sustainability Report

Not Pb-Free or Halogen-Free

Lead in glass/ceramic and BPA in substrate cores.

Does Not Contain
Contains
SVHC
SVHC> 0.1%> 0.1%

Does Not Contain SVHCs > 0.1%

The latest Waste Electrical and Electronic Equipment(WEEE) document, Directive 2012/19/EU, applies
to producers of certain electrical and electronicequipment.
We are primarily a component manufacturer, so
our products are generally not considered within
the scope of the WEEE directive until they areincorporated into a final product.
Some NXP products use plastic encapsulations that
contain brominated flame retardants, which areconsidered a WEEE-relevant substance. NXP productsthat do not contain brominated flame retardants areeasily identifiable by the Halogen-free logo on our
packaging label.

ELV-Compliant Products

NXP declares that our semiconductor products
are designed to meet the requirements of the EU
End-of-Life Vehicle (ELV) Directive 2000/53/EC and its
amendments. NXP's ELV-Compliant products do notcontain cadmium, mercury or hexavalent chromium
above the allowable limits per homogeneous level.
NXP's ELV-Compliant products that contain Pb meetthe criteria per exemption.

7%

ē Data and Indices

WEEE-Relevant Substances

Contains SVHCs > 0.1%

Product Stewardship: Responsible Mineral Sourcing
Responsible Mineral Sourcing Goal

ē Introduction100%

ē Sustainability Strategy

Certified Conflict-Free for Tungsten, Tantalum, Tin and Gold (3TG) Smeltersē Our Businessē Product Stewardshipē Environmental ProductResponsible Mineral Sourcing Performance

Complianceē Responsible Mineral
Mineral100%

Sourcing

ē Environment, Health

Certified Conflict-Free 3TG
Smelters3

and Safety

Collection and Reportingof Cobalt Smelters using
the Extended Minerals Reporting
Template (EMRT)ē Team Members
ē Social Responsibility
ē Governanceē Data and Indicesē Appendices

NXP Corporate Sustainability Report

By working collaboratively with other stakeholders, we aim to create better social andeconomic conditions for mine workers and local mining communities. We also actively
assist in supporting artisanal and small-scale miners on their journey to becoming
responsible supply-chain participants with greater access to the global market.
Obtaining data on conflict minerals requires ongoing vigilance. Our due-diligence
activities are based on the Organization for Economic Co-operation and Development(OECD) Due Diligence Guidance for Responsible Supply Chains of Minerals from CAHRAs.

NXP’s responsible sourcing of minerals is an important part of our ongoing efforts
to optimize resources and manage the environmental and social impacts of eachproduct we design and produce. It is a priority that our products do not containminerals derived from nonconformant sources that may originate inConflict-Affected or High-Risk Areas (CAHRAs).

NXP continues to monitor global efforts to address and incorporate other minerals,
including voluntary information collection and reporting processes. Our ECO-Products
processes and Environment, Health and Safety (EHS) Management database support
our efforts to collect 100% substance information for all of our products. The databaseallows us to track new minerals against our portfolio of products.

The four minerals commonly referred to as “conflict minerals” are tin, tungsten,tantalum and gold (3TG). While NXP does not generally use minerals in their raw
form or purchase them directly from mining companies or smelters, we require
our suppliers to report the smelters that source the minerals we purchase. We thenvalidate supplier information against the list of “conflict-free” smelters, as designatedby the Responsible Minerals Assurance Process (RMAP). We encourage our suppliers
to direct their smelters to participate in the RMAP. We monitor information fromthe Responsible Minerals Initiative (RMI), which records changes in smelter status
and identifies those smelters who refuse to participate in audits, so we can takeappropriate action.

NXP has chaired the World Semiconductor Council's conflict-mineral teams since 2013and has been a member of RMI since 2014.

3

37

Since 2017, the systems and processes we have put in place drive our supply-chain to
be Conflict-Free. All suppliers, including contractors and external manufacturers, arerequired to comply with NXP's Supplier Code of Conduct, which includes requirements
relating to conflict minerals and responsible mineral sourcing. If a smelter becomes
Non-Conformant, NXP works proactively to resolve the issue with the smelter orwill remove them from our supply chain. We are also looking into expanding ourawareness and education within our Global Procurement organization.

This data point is reported annually and primarily reflects the 2023 calendar-year data. However, unlike mostof the data in this Report, it does not align with the 2023 calendar year (January 1 to December 31), but aligns
instead with our Conflict Minerals Specialized Disclosure Form (Form SD) and Conflict Minerals Reporting
Template (CMRT) filing.

As the 2021 chair of the European Partnership for Responsible Minerals (EPRM), NXP
worked with various industries, members of government and institutions, supply
chains and Civil Society Organizations (CSOs) to increase the proportion of responsibly
produced and sourced minerals in global supply chains. We remain a strategic
partner and participate in EPRM activities.
To learn more about NXP's Responsible Mineral Sourcing Policy and to access reportsthat include our Conflict Minerals Reporting Template (CMRT), our Extended Minerals
Reporting Template (EMRT) and our Conflict Minerals Specialized Disclosure Form
(Form SD), please visit our Responsible Minerals Sourcing website.

Environment,
Health and Safety
Optimizing and improving our environmental,
health and safety performance

Environment, Health and Safety: Management
ē Introduction
ē Sustainability Strategy
ē Our Businessē Product Stewardshipē Environment, Healthand Safety

ē
ē
ē
ē
ē
ē
ē
ē

Management

Environment Overview
Emissions
Energy
Water

Waste

Hazardous Materials
Health and Safetyē Team Members
ē Social Responsibility
ē Governanceē Data and Indicesē Appendicesē Forward-Looking

Statements

Certification

In accordance with criteria from the International Organization ofStandardization (ISO), our Environment, Health and Safety (EHS)
management system is certified to both ISO 14001 and ISO 45001 at all our
manufacturing sites as well as our headquarters. All of the manufacturing
sites are audited both externally and internally for third-party certification. Our nonmanufacturing sites follow our internal procedures related to Environment, Health and
Safety and are also periodically audited based on local regulations and according to
our internal standards.

Governance

Our EHS Management Board is responsible for environmental management, including
strategy, approval and resourcing. The EHS Management Board is chaired by the Chief
Operations and Manufacturing Officer and supported by senior leaders in businesslines and staff functions. The Board defines the development, approval, purpose, value,
strategies, policies, goals and metrics used to gauge the success of each plan.
NXP's Sustainability and EHS Teams manage annual strategies, policies, goals andmetrics and review progress monthly. Corporate EHS and the Global EHS Leadership
Team collectively establish risk-mitigation strategies and develop and deploy
standards, programs and procedures to reduce environmental, health and safety
impacts and risks worldwide.
Our EHS Team performs formal reviews with management at all our manufacturing
sites on a monthly basis, to examine data, discuss the progress of improvement
projects and set expectations for the next period. In addition, each manufacturing
site's EHS Team collaborates closely with the manufacturing teams to review safety
metrics, investigate all incidents and conduct root-cause analyses. The corrective
actions taken are communicated to all our global sites for continuous improvement.

Risk Assessments, Self-Assessments and Audits
Risk Assessments
Environmental Risk Assessments
All NXP manufacturing sites conduct internal environmental risk assessments annually.
To meet the requirements of ISO 14001, we evaluate potential risks associated with
our manufacturing processes, including material handling as well as energy, water

39

NXP Corporate Sustainability Report

and waste management, to proactively identify, mitigate and manage potential
environmental impacts using programs, procedures and engineering controls.
Health and Safety Risk Assessments
We conduct annual risk assessments to evaluate the in-place management system
and identify any potential risks or safety hazards. Each year we consider the likelihoodof a given occurrence and proactively mitigate risks and hazards through programs,
procedures and engineering controls.

Self-Assessments

As part of our membership in the Responsible Business Alliance (RBA), each of oureight manufacturing sites is required to complete an RBA Self-Assessment thatcovers environmental, health and safety management systems. Conducting selfassessments helps us evaluate potentially significant social and environmental risks
at our manufacturing sites so we can apply appropriate mitigation and controls as
needed. During annual EHS self-assessments, each site completes a checklist that
evaluates the Management System elements of the ISO 45001 and ISO 14001 standards.
To address issues, each site creates a corrective action plan and closes out thenonconformances accordingly.

AuditsThe EHS and Social Responsibility Teams use external audit firms to conduct internal
EHS audits. These selected firms are experts in the standards for EHS Management
Systems and NXP Social Responsibility Standards. EHS audits are typically conducted
every 30 months and audit nonconformances are categorized according to severity.
Our registrar, Lloyd's Registrar Quality Assurance (LRQA), conducts annual thirdparty audits to evaluate corporate EHS and, on average, two manufacturing sites as
determined by LRQA. In 2023, NXP successfully completed all the required surveillancemeasures at three sites and our corporate headquarters, in accordance with the ISO
14001 and ISO 45001 standards. At all of the audited sites, LRQA audited a sampling ofcompliance and management systems. A formal report was issued and corrective
actions are being tracked until LRQA indicates that they have been satisfactorilyclosed. Larger offices and R&D sites conduct annual self-assessments and areaudited by a third party approximately every five years.

Environment, Health and Safety: Management
ē Introduction
ē Sustainability Strategy
ē Our Businessē Product Stewardshipē Environment, Healthand Safety

ē
ē
ē
ē
ē
ē
ē
ē

Management

Environment Overview
Emissions
Energy
Water

Waste

Hazardous Materials
Health and Safetyē Team Members
ē Social Responsibility
ē Governanceē Data and Indicesē Appendicesē Forward-Looking

Statements

40

NXP Corporate Sustainability Report

We take Notices of Violations (NOVs) seriously. We work quickly to identify corrective
actions and take steps to minimize the chance of reoccurrence. In 2023, we received
one NOV for a minor infraction resulting in a fine less than $1,000. We resolved theinfraction quickly, and otherwise maintained an exceptional compliance record.

Training

We offer company-wide training to ensure our global workforce is equipped withthe skills and knowledge to perform their functions safely and without harming theenvironment. This includes job- and site-specific training, on-the-job training andspecialized training that includes the prevention of stormwater pollution, managementof hazardous waste and wastewater, handling of chemicals, chemical management
and safety, emergency response, ergonomics, shipping of hazardous materials andother topics related to the environment, health and safety. Training and awarenessincludes engaging our team members in incident investigations, to identify potential
improvements and assist in the implementation and ongoing improvement ofmanagement systems. We completed over 99% of our safety-training programs in 2023.

Validation

NXP's data-management system tracks and calculates our environmental, health andsafety performance at each manufacturing site. On a quarterly basis, the EHS Teams
validate the reported data for every site that: a) we own, rent, lease or manage, b)
has 50 or more team members and c) is included in our financial reporting. Validationconsists of the following steps:• Check for completeness of data (sites and parameters)• Compare data from the previous period with data from the current reporting period• Determine whether changes in data are significant• Seek explanations for any significant data changes• Compare related data (e.g., number of illnesses and injuries versus lost workdays)• Investigate significant eventsThe EHS Teams at each manufacturing site meet regularly with the senior
manufacturing management to review performance, the progress of improvement
projects and expectations for each project milestone. To ensure reliable, accurate
and complete reporting, EHS also conducts internal data audits of our manufacturing
sites as well as our larger office and R&D sites. The audits check for proper reporting
procedures and data trails.
When the data from prior reporting years exceeds a 2% change in total values, wewill restate values and give an explanation in the related section. We have revised
the 2021 and 2022 N2O values in the Scope 1 Chemical List to align with adoption of
the 2019 Refinement Intergovernmental Panel on Climate Change (IPCC) Guidelines
for National Greenhouse Gas Inventories. For more details, see the Emissions sectionin this Report. Otherwise, there are no restatements in this 2023 Report.

Environment, Health and Safety: Environment Overview
ē Introduction
ē Sustainability Strategy
ē Our Businessē Product Stewardship

Long-Term Environmental Ambitions
Carbon Neutral by2035

Minimize Impact on

Global Water Supplies

Develop Collaborative

Solutions for Circular
EconomyReduce Use of Targeted

Chemicals of Concern

Collaborate with our
Suppliers to Reduce
their Environmental

Footprint

ē Environment, Healthand Safety

ē
ē
ē
ē
ē
ē
ē
ē

2027 Mid-Term Environmental Goals

Management

Environment
Overview
Environment Overview
Emissions
Energy
Water

Waste

Hazardous Materials

35%

Reduction in Scope 1 and 2
Carbon Footprint(2021 Baseline)

50%

Renewable Electricity Use

60%

of Wastewater Recycled

Waste Recycled

Carbon Footprint

Health and Safetyē Team Members

2023 Environmental Performanceē Social Responsibility
ē Governanceē Data and Indices

Decrease in Absolute Scope
1 and 2 Emissions since 2021
Baseline

Renewable Electricity Use

Wastewater Recycled

ē Appendicesē Forward-Looking

Statements

41

90%

Work with Our Supply Chain
to Reduce Impacts andMeasure Our Portion of TheirNXP Corporate Sustainability Report

As an environmentally responsible manufacturer committed to continuous
improvement, we strive to optimize our use of natural resources, emissions to theenvironment and achieve operational efficiencies. To support these objectives, we
maintain and implement an environmental management system. Key environmental
principles are embedded in our Sustainability Policy.

Waste Recycled

Assessed andReportedon AllEmission Categories

Environment, Health and Safety: Environment Overview
ē Introduction

Biodiversity

ē Sustainability Strategy

NXP is committed to protecting and preserving biodiversity in our operations andbusiness relations. As a practical step, we’ve adopted a dedicated Biodiversity
Policy in 2023, where we introduce new measures that include the following:ē Our Businessē Product Stewardship• Request to all business partners to establish a biodiversity policy and consider
local biodiversity assessments, as part of NXP’s Supplier Code of Conduct.

ē Environment, Health• Commitment to better understand NXP’s biodiversity and nature-related
dependencies, impacts, risks and opportunities based on international guidancesuch as the Taskforce on Nature-Related Financial Disclosures (TNFD).

and Safety

ē
ē
ē
ē
ē
ē
ē
ē

Management

Environment Overview
Environment
Overview
Emissions
Energy
Water

Waste

Hazardous Materials
Health and Safetyē Team Members
ē Social Responsibility
ē Governanceē Data and Indicesē Appendicesē Forward-Looking

Statements

42• Local risk assessments to assess potential adverse impacts on biodiversity.

NXP Corporate Sustainability Report

In addition, we continue to support and encourage activities that help address
the ongoing climate and biodiversity crisis through our corporate sponsorships
and exemplary team-member volunteerism.

Environment, Health and Safety: Emissions
ē Introduction
ē Sustainability Strategy
ē Our Businessē Product Stewardship

Long-Term Emissions Ambitions
Carbon Neutral by2035

Collaborate with our Supplierson Their Environmental

Footprint

ē Environment, Healthand Safety

ē
ē
ē
ē
ē
ē
ē
ē

Environment Overview

Emissions
Emissions
Energy
Water

Waste

Hazardous Materials

35%

Reduction in Scope 1 and 2
Carbon Footprint(2021 Baseline)

Work with Our Supply Chain
to Reduce Impacts andMeasure NXP's Portion of Their

Carbon Footprint

Our manufacturing sites generate Scope 1 (direct) and Scope 2 (indirect) greenhousegas (GHG) emissions. The main contributors to our Scope 1 and 2 carbon footprint
are emissions from purchased electricity, perfluorinated compounds (PFCs) andheat-transfer fluids (HTFs). Electricity, PFCs and HTFs are essential to semiconductor
manufacturing. Since it's not currently feasible to eliminate the sources of theseemissions from our production processes completely, we have set reduction goals
for both Scope 1 and 2 emissions.

2023 2023
Scope
1 and
2 GreenhousebyType
Type
Scope
1 and
2 GreenhouseGas
GasEmissions
Emissions by
3%

Health and Safetyē Team Members
ē Social Responsibility
ē Governanceē Data and Indicesē Appendicesē Forward-Looking

Statements

432027 Mid-Term Emissions GoalManagement

As semiconductor technology evolves, manufacturing processes become more
complex. Smaller, faster semiconductors require more process steps to produce, whichmeans production consumes more energy and requires more processing chemicals.
That, in turn, may translate to an increase in emissions. We work to offset this bycontinually optimizing our processes and increasing abatement of process emissions.

NXP Corporate Sustainability Report

2023 Emissions Performance
Decrease in Absolute Scope
1 and 2 Emissions Since 2021
Baseline

7%

31%

Assessed andReported on All
Emission
Categories

59%

Electricity (Manufacturing
PFCs
HTFs and Non-Manufacturing)
Other Emissions

Electricity (Manufacturing and Non-Manufacturing)
PFCs

HTFs

Other Emissions

Environment, Health and Safety: Emissions
ē Introduction
ē Sustainability Strategy
ē Our Businessē Product Stewardshipē Environment, Healthand Safety

ē
ē
ē
ē
ē
ē
ē
ē

Management

Environment Overview

Emissions
Emissions
Energy
Water

Waste

Hazardous Materials
Health and Safetyē Team Members
ē Social Responsibility
ē Governanceē Data and Indicesē Appendices

Goals

Our goal to be carbon neutral by 2035 presents multiple layers of complexity, giventhat we use renewable and non-renewable electricity, fossil fuels, PFCs and HTFs.1
The picture becomes even more complex when we consider increases insemiconductor production which, in turn, increase our GHG emissions. In 2022, we
committed to setting Science Based Targets (SBTs).2 We compiled the required data
and defined the targets in 2023, and will begin the validation process with Science
Based Targets initiative (SBTi) in 2024.
By 2027, our mid-term goal is to reduce Scope 1 and 2 absolute emissions by 35% froma 2021 baseline. To reach our mid-term goal, we will address Scope 1 reduction byfocusing on designing and/or installing equipment to reduce emissions, substituting
chemicals and optimizing manufacturing processes. Since electricity is our largest
GHG contributor, another of our mid-term goals is to increase our renewable electricity
use to 50% and thereby decrease our Scope 2 emissions. To help achieve our 2027
goal, we created a task force to identify opportunities for additional reductions inemissions. We have a solid roadmap in place for achieving our mid-term, 2027 goals.
Our ability to achieve our 2035 goal will depend on the availability of renewableelectricity in some of the countries where we operate, so we can reduce our Scope
2 emissions further, and on the effectiveness of the technical solutions we plan toimplement to reduce our Scope 1 emissions.
In 2024, we will continue to prepare for the EU Corporate Sustainability Reporting
Directive (CSRD), including the requirement that we publish a Climate Transition Plan.
We intend to publish a Climate Transition Plan consistent with CSRD requirements
no later than 2026. As part of our Climate Transition Plan, we have set goals for our
Scope 3 emission reduction initiatives and plan to have our climate goals validated
by the SBTi in 2024. This process is underway and the outcome is necessary to finalizea Climate Transition Plan. Our progress will be reported in future Reports.

ē Forward-Looking

Statements

NXP’s strategic approach is to reduce its Scope 1 and Scope 2 emissions by 2035 by prioritizing theimplementation of technically and socio-economically feasible solutions. We intend to offset any remaining
Scope 1 and Scope 2 emissions.
2
The SBTi provides guidance to companies regarding their efforts to reduce emissions in line with the goals of
the Paris Agreement. https://sciencebasedtargets.org
1

44

NXP Corporate Sustainability Report

Scope 1 and 2 Key Decarbonization Levers
Electricity

PFCs

HTFs

Increase Percentage ofRenewable Electricity

Replace or Minimize
Use of GHGs

Substitute Chemicals
to Reduce HTF
Emissions

Optimize Building
Operations and ProductTesting Processes

Optimize Processes

Design and Purchase
New Equipment toPrevent Emissions

Power Down Equipment
When Not in Use

Reduce Leakage

Phase Out Non-Critical
Uses of HTFs

Use Efficient Lighting
Technologies and
Schedules

Install PFCAbatement
Equipment

Environment, Health and Safety: Emissions
ē Introduction

Carbon Footprintē Sustainability Strategy

2023 Absolute Emissions Performanceē Our Businessē Product Stewardshipē Environment, Health

Scope 1 and 2 Emissions

23%

Decrease from 2022

and Safety

ē
ē
ē
ē
ē
ē
ē
ē

Management

Energy
Water

Waste

42%

Decrease from 2021
Baseline

Decrease from 2014

Scope 3 Emissions

Environment Overview

Emissions
Emissions

24%

36%

Decrease from 2022

Hazardous Materials

11.86

We measure our carbon footprint according to the GHG Protocol, a set of internationallyrecognized standards for quantifying and reporting GHG emissions. We report on all
three of the protocol's defined categories: Scope 1 (direct emissions), Scope 2(indirect emissions, owned) and Scope 3 (upstream and downstream emissions).
2023 marked the first time we made a detailed inventory of all 15 categories of Scope 3,
mapping NXP's footprint throughout our entire value chain. Our Scope 3 emissions areunderstandably larger than our Scope 1 and 2 emissions, given that Scope 3 emissions
represent an impact beyond our operations. While we will remain focused on our Scope
1 and 2 decarbonization efforts, we will also work to establish methods to reduce our
Scope 3 footprint, and will have validated Scope 1, Scope 2 and Scope 3 SBTs in 2024.

Million tCO2e Total Scope 3 Emissions in 2023

Health and Safetyē Team Members
ē Social Responsibility

2023
ProportionofofScope
Scope 1,
1, 22 and2023
Proportionand33Emissions
Emissions3%

ē Governance4%ē Data and Indicesē Appendicesē Forward-Looking

Statements

93%
Scope 1

Scope 145

NXP Corporate Sustainability Report

Scope 2 (Market-Based)
Scope 3

Scope 2 (Market-Based)

Scope 3

Scope 1

Scope 2

Scope 3

Direct sources

Indirect sources

Upstream and downstream sources

Environment, Health and Safety: Emissions
ē Sustainability Strategy
ē Our Businessē Product Stewardship

Scope 1 and 2 Carbon Footprint Performance

Due to increased renewable electricity purchase, lower factory utilization and emission
reduction projects, our absolute Scope 1 and 2 emissions decreased 23% compared
to 2022. A decade of collective effort has significantly reduced our Scope 1 and 2
emissions. Since 2014, we've lowered absolute emissions by 42%. By 2027, our mid-termgoal is to reduce Scope 1 and 2 absolute emissions by 35% from a 2021 baseline. So far,
we have decreased Scope 1 and 2 emissions by 24% since 2021.
Scope 1 and 2 Emissions3

ē Environment, Healthand Safety

2000

Management

Energy
Water

Waste

Hazardous Materials
Health and Safetyē Team Members

20

1500

ē Social Responsibility

1000

500

0

ē Governance

765

793

771

766

2014

2015

Scope 1 Emissions

15
650

602

580

459

530
370

723

676

626

665

639

2016

2017

2018

2019

2020

2021

2022

Scope 2 Emissions (Market-Based)ē Forward-Looking

Statements

NXP Corporate Sustainability Report

515

736

ē Appendices

3

356

756

ē Data and Indices46

25

Environment Overview

Emissions
EmissionsThousand tCO2e

ē
ē
ē
ē
ē
ē
ē
ē

Scope 1 and 2 Emissions3Market-based emissions reflect actual data from energy providers.

10

tCO2e/m2

ē Introduction

5
527

2023

0

Normalized Scope 1 and Scope 2 Emissions

Environment, Health and Safety: Emissions

ē Our Businessē Product Stewardship2023 Scope 1 Absolute Emissions Performance30%

Decrease from 2022

28%

Decrease since 2021
Baseline

52%

Decrease from 2014

ē Environment, Healthand Safety

ē
ē
ē
ē
ē
ē
ē
ē

Management

Environment Overview

Emissions
Emissions
Energy
Water

Waste

Hazardous Materials
Health and Safetyē Team Members
ē Social Responsibility
ē Governanceē Data and Indicesē Appendicesē Forward-Looking

The GHG Protocol defines Scope 1 emissions as direct emissions from company-owned
and -controlled resources, including process emissions (from onsite manufacturing)and stationary combustion (fuels, heating sources, etc.). Our Scope 1 emissions only
includes data from manufacturing sites.

In 2023, our absolute Scope 1 emissions decreased by 30% compared to 2022. Since
2014, our efforts to optimize our processes, upgrade tools and install abatement
equipment have lowered our absolute Scope 1 emissions by 52%.
Scope 1 Emissions5

Our Scope 1 emissions include PFC emissions, HTF emissions, emissions from theconsumption of fossil fuels and emissions of gases identified in the Kyoto Protocol,
including Nitrous Oxide (N2O) and Sulfur Hexafluoride (SF6).
In 2023, NXP completed adoption of the 2019 Refinement to the 2006 Intergovernmental
Panel on Climate Change (IPCC) Guidelines for National Greenhouse Gas Inventories.
The goal of the IPCC's 2019 document was to update and refine the 2006 IPCC
Guidelines. The 2019 Refinement is important because it provides two things:• Supplementary methodologies for sources and sinks of greenhouse gases forareas that currently have gaps and where new technologies and production
processes necessitate revised methodologies. The additions also address
sources and sinks that were not well covered by the 2006 IPCC Guidelines.

Scope 1 Emissions5

1,000
800
Thousand tCO2e

ē Sustainability Strategy

Having adopted the 2019 Refinement, we have updated some of our historical data.
As a result, some of the N2O emissions and, by extension, our Scope 1 emissions, differ
from what were previously reported. To be specific, we now use IPCC 2006 Tier 2a for2014 through 2020 data and IPCC 2019 Tier 2c for 2021 through 2023 data. To makecomparison easier, we report N2O values for 2021, 2022 and 2023 using both IPCC
2006 and IPCC 2019 methodologies in the N2O subsection of this chapter. In future,
we will only report using IPCC 2019 methodology for totals after 2021. For additional
information on our updated IPCC calculation methodology, please see our discussionof N2O emissions on the following pages.

18

42

600

173

9

186

17

41

18
40
114

400
530

0

• Updated default values of emission factors and other parameters, based on
the latest available scientific information, where there are significant differencesfrom the default values presented in the 2006 IPCC4.

18

39

130

200

550

15

41

95

42
114

460

429

PFC Emissions

2015

2016

HTF Emissions

2017

427

2018

19

14

289

2014

12

2019

Fossil-Fuel Emissions

44
105

14

42
82
346

217

2020

2021

N2O Emissions

21
46
62

6
16
45

400

2022

27

tCO2e/m2

Scope 1 Emissions

ē Introduction

3

283

2023

0

Normalized Scope 1 Emissions

We use IPCC 2006 Tier 2a for 2014 through 2020 data and IPCC 2019 Tier 2c for 2021 through 2023 data.

Statements

4
5

47

NXP Corporate Sustainability Report2019 Refinement to the 2006 IPCC Guidelines for National Greenhouse Gas Inventories
The Scope 1 Chemicals List section of the Data and Indices chapter of this Report lists the chemicals includedin each Scope 1 category.

Environment, Health and Safety: Emissions
ē Introduction

Scope 1 Emissions by Typeē Sustainability Strategy

PFC Emissions

ē Our Businessē Product Stewardshipē Environment, Healthand Safety

Management

Decrease from 202218%

Decrease from 2021
Baseline

47%

Decrease from 2014

Environment Overview

Emissions
Emissions
EnergyWater

PFC Emissions

Waste

Health and Safety

ē Social Responsibility
ē Governanceē Data and Indicesē Appendicesē Forward-Looking

Statements

NXP Corporate Sustainability Report

PFCs are critical to semiconductor manufacturing. At present, there are no viable
alternatives for the PFCs used in the manufacturing process to etch integrated circuitry
onto silicon wafers and to clean the internal chambers of deposition equipment.
We use a variety of controls to minimize the impact of PFCs on the environment.
NXP is a signatory to two documents – the Memorandum of Understanding in the
United States and the Memorandum of Agreement in the European Union – whichseek voluntary reductions in PFC emissions. We also support the Global Semiconductor
Industry PFC voluntary agreement, which is supported by all members of the World
Semiconductor Council (WSC).
Our PFC usage today is significantly lower than it was ten years ago, because wehave engaged in purposeful efforts to minimize usage, where feasible, and to update
abatement infrastructure. As a result of our ongoing efforts to optimize our processes,
upgrade tools and install abatement equipment, absolute PFC emissions decreasedby 29% in 2023 compared to 2022. Since 2014, our absolute PFC emissions havedecreased by 47%.

PFC Emissions

700
600
500

530

8

550
460

400

6
429

427

400
346
289

300

283

4

217

200

2

100
0

2014

2015

2016

2017

2018

PFC Emissions

2019

2020

2021

2022

2023

0

Normalized PFC Emissions

We use IPCC 2006 Tier 2a for 2014 through 2020 data and IPCC 2019 Tier 2c for 2021 through 2023 data.

tCO2e/m2

Hazardous Materials

ē Team Members

48

29%

Thousand tCO2e

ē
ē
ē
ē
ē
ē
ē
ē

2023 PFC Absolute Emissions Performance

Environment, Health and Safety: Emissions
HTF Emissions

ē Introduction

2023 HTF Absolute Emissions Performanceē Sustainability Strategy
ē Our Businessē Product Stewardship

57%

74%

Decrease from 2022

84%

Decrease from 2021
Baseline

Decrease from 2014

ē Environment, Healthand Safety

Management

Environment Overview

Emissions
Emissions
Energy
Water

Waste

Hazardous Materials
Health and Safetyē Team Members

HTFs are used in manufacturing processes and device testing to maintain a particulartemperature. The majority of HTFs are used to test hermetically sealed RF products,
while the remainder are used in manufacturing processes.
To address HTF emissions, our team members have designed and implemented
new tools to create a semi-automated, closed-loop system that collects emissions
from vapor-diffusive loss and fluid drag-out. Since 2014, absolute HTF emissions havedecreased by 84%. Compared to 2022, HTF emissions have decreased by 57%.
HTF Emissions

ē Social Responsibility
ē GovernanceStatements

Thousand tCO2e

ē Forward-Looking

3250

ē Data and Indicesē Appendices

HTF Emissions

300

200

173

2

186

150

130

100

114

95

114

105
82

62

50
0

27

2014

2015

2016

2017

2018

HTF Emissions
49

NXP Corporate Sustainability Report

1

2019

2020

2021

Normalized HTF Emissions

2022

2023

0

tCO2e/m2

ē
ē
ē
ē
ē
ē
ē
ē

To confirm that semiconductor packages are hermetically sealed,
semiconductor manufacturers typically use what's called a Gross Leak
Test, which involves submerging the package in an HTF-based coolant.
It's an effective test, but the HTF-based coolant has a high global-warming
potential (GWP) if released into the environment. Reducing or eveneliminating the use of the HTF-based coolant, while still producing reliable
results, requires the invention of a new method. Our team in Malaysia
succeeded in doing just that. Through their hard work and determination,
multiple lab tests and close alignment with customers, they were able toreplace the Gross Leak Test with an alternative that doesn't require an HTF,
yet is just as effective.

Environment, Health and Safety: Emissions
Fossil-Fuel Emissions

ē Introduction

2023 Fossil-Fuel Absolute Emissions Performanceē Sustainability Strategy
ē Our Businessē Product Stewardship2%2%

Decrease from 2022

6%

Decrease from 2021
Baseline

Decrease from 2014

ē Environment, Healthand Safety

Management

Environment Overview

Emissions
Emissions
Energy
Water

Waste

Hazardous Materials
Health and Safetyē Team Members

Our use of natural gas varies each year depending on outdoor temperatures andmanufacturing levels. We burn natural gas to power furnaces and generators used
to heat and control humidity in our clean rooms.
In 2023, our absolute emissions from fossil fuels decreased by 2% compared to 2022,
and increased 6% compared to 2014. While our absolute emissions of fossil fuelsremain relatively stable, our normalized consumption went up due to lower loadingin our factories.
Fossil-Fuel Emissions

ē Social Responsibility

ē Forward-Looking

Statements

50
Thousand tCO2e

ē Appendices

40

42

39

41

41

40

42

44

0.60
45

0.40

20

0.20

10

2014

2015

2016

2017

2018

Fossil-Fuel Emissions

NXP Corporate Sustainability Report

42

46

30

0

50

0.80

60

ē Governanceē Data and Indices

Fossil-Fuel Emissions

70

2019

2020

2021

2022

Normalized Fossil-Fuel Emissions

2023

0

tCO2e/m2

ē
ē
ē
ē
ē
ē
ē
ē

Environment, Health and Safety: Emissions
N2O Emissions

ē Introduction

2023 N2O Absolute Emissions Performanceē Sustainability Strategy
ē Our Businessē Product Stewardship24%

Decrease from 2022

20%

Decrease from 2021
Baseline

12%

Decrease from 2014

ē Environment, Healthand Safety

Management

Environment Overview

Emissions
Emissions
EnergyWaste

Hazardous Materials
Health and Safetyē Team Members
ē Social Responsibility
ē Governanceē Data and Indicesē Appendicesē Forward-Looking

Statements

N2O Emissions

N2O is used at several points in the manufacturing process, including chemical vapor
deposition of silicon dioxide, doped or undoped silicon oxynitride, diffusion, rapid
thermal processing and chamber seasoning.
Transitioning from IPCC 2006 to IPCC 2019 has changed the calculation for N2Oemissions, resulting in an increase in total N2O emissions by an average of 28%
compared to the total values calculated using the IPCC 2006 methodology. Even so,
we remain confident that we can meet our 2027 goal of 35% reduction in Scope 1 and 2
emissions, as well as our 2035 goal of carbon neutrality.
The following charts illustrate the differences in calculation methodologies. The original
results, using the IPCC 2006 Tier 2a methodology, will continue to be used for historicalvalues up until 2020. The results using the IPCC 2019 Tier 2c methodology, for 2021 and2022 data, include revised emission factors, with further refinement by process type.

25
20

NXP Corporate Sustainability Report

0.30
21

18

18

17

19

18
15

15

14

14

15

16

16

0.20

12

10

0.10

5
0

In 2023, our absolute N2O emissions decreased by 24% compared to 2022 and 12%
compared to 2014. This decrease is a result of our lower factory utilization in 2023.

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

0

N2O Emissions: IPCC 2006 Tier 2a Methodology / AR4
N2O Emissions: IPCC 2019 Tier 2c Methodology / AR5
Normalized N2O Emissions

651

N2O Emissions6tCO2e/m2

Water

Thousand tCO2e

ē
ē
ē
ē
ē
ē
ē
ē

Normalized N2O emissions in this chart use the IPCC 2006 Tier 2a methodology for data leading up to andincluding 2020, and the IPCC 2019 Tier 2c methodology, with Global Warming Potentials of the IPCC Assessment
Report #5 (AR5), as of 2021.

Environment, Health and Safety: Emissions
Scope 2 Emissions

ē Introduction
ē Sustainability Strategy
ē Our Businessē Product Stewardshipē Environment, Healthand Safety

Management

17%

Decrease from 2022

21%

Decrease from 2021
Baseline32%

Decrease from 2014

Our efforts in the past ten years to conserve electricity, obtain renewable energy
and optimize our process tools have produced a continuous decrease in Scope 2
emissions, even though many of our processing steps are more complex and require
more electricity to run. Since 2014, our absolute Scope 2 emissions have decreased by
32%. In 2023, our absolute Scope 2 emissions decreased by 17% compared to 2022.

Environment Overview

Emissions
Emissions

Scope 2 Market-Based Emissions7

EnergyScope 2 Market-Based Emissions7

Waste

900

Health and Safetyē Team Members
ē Social Responsibility
ē Governance

12

1,000

Hazardous Materials

800

30

32

27

700

24

10
22

22

600

22

22

21

500
400
300

740

735

729

712

701

654

604

643

614

200

ē Data and Indices0ē Forward-Looking

2014

2015

2016

2017

2018

2019

2020

Non-Manufacturing Emissions

Statements

7

6
4
2

Manufacturing Emissions

NXP Corporate Sustainability Report

506

100

ē Appendices

52

8

25

Market-based numbers reflect actual data from energy providers.

2021

2022

2023

0

Normalized Scope 2 Emissions

tCO2e/m2

Water

Thousand tCO2e

ē
ē
ē
ē
ē
ē
ē
ē

2023 Scope 2 Absolute Emissions Performance

The GHG Protocol defines Scope 2 emissions as indirect emissions from the generationof purchased energy supplied by a utility provider. At present, all of our Scope 2 energy
use consists of electricity. We use our energy providers' actual, market-based emission
data when we calculate our Scope 2 emissions. Our Scope 2 emissions includes datafrom both manufacturing and non-manufacturing sites.

Environment, Health and Safety: Emissions
ē Introduction
ē Sustainability Strategy
ē Our Businessē Product Stewardshipē Environment, Healthand Safety

ē
ē
ē
ē
ē
ē
ē
ē

Management

Environment Overview

Emissions
Emissions

Scope 3 Emissions

We understand that our impact extends beyond our operations and recognize theimportance of addressing emissions along the entire value chain, not just within thebounds of our company. The Greenhouse Gas Protocol defines Scope 3 emissions
as indirect emissions, not included in Scope 2, that occur in the value chain of thereporting company and divides the upstream and downstream emissions into 15
categories.
2023 marks the first time we took a comprehensive, detailed inventory of our Scope 3
emissions for all 15 categories. In so doing, we followed the calculation guidance laidout by the GHG Protocol. At the same time, as part of the commitment to the Science
Based Targets initiative (SBTi) we made in 2022, we determined our Scope 3 emissions
baseline with the aim of setting targets in 2023.

Cataloging Scope 3 emissions is a complex endeavor that presents specificchallenges. It necessitates cooperation from multiple actors along the entire value
chain, both inside and outside our company, and involves assumptions on the use of
our products in their end markets. During our assessment, we considered all sites andactivities where NXP retains operational control, including our own manufacturing sites
and our joint venture, to be in scope of our measurements.
NXP embraces the challenge of measuring our Scope 3 emissions and, due to thecomplex nature of the process, we do not consider the assessment of our Scope
3 emissions to be a one-time effort. We view it as an ongoing activity, where we
gain more granularity into all categories over time, and focus on the ones that
contribute the most to our emissions. In the coming years, we will continue to review
our calculations, refine our methodologies and evaluate whether the underlying
assumptions made earlier in the project are still accurate.

Energy
Water

Waste

Upstream Categories

Hazardous Materials

Downstream Categories

Health and Safetyē Team Members
ē Social Responsibility

Category 1
Purchased Goods
and Services

ē GovernanceCategory 7
EmployeeCommuting

Category 9
Downstream
Transportation
and Distribution

Category 2
Capital Goods

Category 5
Waste Generated
in Operations

Category 3
Fuel- and EnergyRelated Activities not
Included in Scope 1 or 2

Category 6
Business Travel

ē Forward-Looking

NXP Corporate Sustainability Report

CHART-NETWORK

Category 12
End-of-life Treatment
of Sold Products

Category 14
Franchises

Sack-dollar
Category 8
Upstream Leased
AssetsCategory 10
Processing of Sold
Products

Statements

53



TRASH-ALTē Data and Indicesē Appendices

Category 4
UpstreamTransportation
and Distribution

Not Material Categories

Category 11
Use of Sold
Products

Category 13
Downstream
Leased Assets

Category 15
Investments

Environment, Health and Safety: Emissions
ē Introduction

Scope 3 Emissions Performanceē Sustainability Strategy
ē Our Businessē Product Stewardshipē Environment, Healthand Safety

ē
ē
ē
ē
ē
ē
ē
ē

Management

Environment Overview

Emissions
Emissions
Energy
Water

Waste

Hazardous Materials
Health and Safetyē Team Members
ē Social Responsibility
ē Governanceē Data and Indicesē Appendicesē Forward-Looking

Statements

54

NXP Corporate Sustainability Report

2023 Scope 3 Emissions Performance

11.86

Million tCO2e Total Scope 3 Emissions

36%

Decrease from 2022 Baseline

In 2023, our total Scope 3 emissions were 11,857,054 tCO2e and account for 93% of our
total carbon footprint, underscoring the importance of responsible environmental
stewardship that goes beyond the strict boundaries of any given company. As a resultof the ongoing implementation of energy-consumption reduction measures in our
products, slight updates to our calculation methodologies, and lower loading in ourfactories, our total Scope 3 emissions decreased
in 2023 compared to 2022.
Within the 15 GHG Protocol categories, we identified three which, combined, areresponsible for approximately 98% of NXP's total Scope 3 emissions. These include,in descending order of contribution: Category 11 - Use of Sold Products, Category
1 - Purchased Goods and Services and Category 2 - Capital Goods. During ourassessment, we also concluded that two categories (Category 14 - Franchises
and Category 15 - Investments) are not material to NXP at this time.

Environment, Health and Safety: Emissions
Scope 3 Emissions by Category8

ē Introduction

Scope 3 Emissions by Category8
20,000ē Sustainability Strategy

17,500ē Our Businessē Environment, Healthand Safety

ē
ē
ē
ē
ē
ē
ē
ē

Management

15,000Thousand tCO2e

ē Product Stewardship

12,50010,000

Environment Overview

Emissions
Emissions

5,000

0

Water

Waste

14,511

264

Category 1 - Purchased Goods and Services
Category 2 - CapitalGoods

Category 11 - Use of Sold Products
Categories 3-10 and 12-13

8,035

7,500

2,500

Energy

320

267

3,430

3,291

2022

2023

Hazardous Materials
Health and Safetyē Team Members
ē Social Responsibility
ē Governanceē Data and Indicesē Appendicesē Forward-Looking

Statements

Top Scope 3 Emission Categories
To account for all 15 categories defined by the Greenhouse Gas Protocol, we gathered
input from inside and outside the company. For those categories we consider to be
hotpots or where data was readily available, we used activity-based calculations todetermine emissions. For other categories, we used spend data or a hybrid approachto calculate emissions. Reporting emissions is an ongoing pursuit, and we aim to havemore precise data in coming years.
Three categories make up approximately 98% of our Scope 3 emissions, and wecover them in more detail here. Information about NXP's results in the remaining
categories can be found at the ESG Performance section of the Data and Indiceschapter of this Report.
Category 1 — Purchased Goods and Services
Category 1 includes emissions from the extraction, production and transportationof goods and services purchased or acquired by NXP. In 2023, the main contributors
were materials and semi-finished goods used in our front- and backend
manufacturing processes. Emissions from this category were estimated at 3,291,179
tCO2e for 2023, which represents 28% of our total Scope 3 footprint.
8

55

292

NXP Corporate Sustainability Report

Categories 14 and 15 are not material for NXP at this time.

Category 2 — Capital Goods
Category 2 includes all upstream emissions from the production of capital goods,
mainly tools and equipment, purchased or acquired by NXP. Emissions from theuse of these goods are accounted for either in Scope 1 or Scope 2. In 2023, emissions
from production of capital goods were approximately 266,665 tCO2e, which represents
2% of our total Scope 3 footprint.
Category 11 — Use of Sold Products
Category 11 was the largest contributor to our Scope 3 emissions in 2023, responsible
for an estimated 8,035,180 tCO2e emissions, which represents 68% of our total Scope 3
footprint.
Emissions from the use of sold products are calculated for the entire life-cycle ofproducts sold in a year, and come from the greenhouse-gas emissions resulting fromthe production of electricity needed to operate the semiconductors manufactured by
NXP. When estimating product lifespans, we took into account industry standards, suchas the AEC Q100 standard for the automotive industry, and, where available, reviewed
data in our products' end markets, to best assess how our products are used.
Products from our RF business make up a large portion of the emissions in thiscategory, because they have long lifetimes in the field and tend to be powered oncontinuously. According to our benchmarking, however, our RF products are stillamong the best in energy-efficiency in this market. For this reason, we still consider
them to be an important step in building a sustainable future, even if they havehigher emissions than the rest of our portfolio.

Although business travel is not one of the main contributors to our Scope 3
footprint, we still consider it to be an important emission category. In 2023,
we participated in airline programs that offset our business travel-related
emissions and, as a result, received a certificate, representing an offset of
one ton of greenhouse gases, from the German branch of myclimate, aninternational organization for climate protection.

Environment, Health and Safety: Emissions
Non-GHG Emissions

ē Introduction
ē Sustainability Strategy

2023 Non-GHG Absolute Emissions PerformanceNOxē Our Businessē Product Stewardship2%

Decrease from 2022

SOx

21%

Decrease from 2021

VOCs

36%

Decrease from 2022

NOx, SOx and VOCs

Our non-greenhouse gas (non-GHG) emissions, which include nitrogen oxides(NOx), sulfur oxides (SOx) and volatile organic compounds (VOCs), mostly comefrom our manufacturing processes, including the use of chemical solvents in thephotolithography process, but also from our boilers and emergency generators.
We aim to reduce our use of non-GHG emissions by installing and updating
abatement equipment at select sites.

ē Environment, Health
ē
ē
ē
ē
ē
ē
ē
ē

Management

Environment Overview

Emissions
Emissions
Energy
Water

Waste

Hazardous Materials
Health and Safetyē Team Members
ē Social Responsibility
ē Governanceē Data and Indicesē Appendicesē Forward-Looking

Statements

56

NXP Corporate Sustainability Report

66%

Decrease from 20147%

Decrease from 2014

Non-GHG Emissions

28%

1.9

250

Decrease from 2014

0.7

Thousand Kilograms (kg)and Safety

Non-GHG Emissions

200
150

116

0.8

106

0.7

115

0.7

108

0.8
1.0
0.8

117
103

0.6
185
0.8

100

130

112

83

50
0

98

95

94

95

99

86
37

2014

2015

2016

2017

2018
NOx

2019
VOCs

2020
SOx

67

2021

34

34

2022

2023

Environment, Health and Safety: Energy
ē Introduction
ē Sustainability Strategy
ē Our Businessē Product Stewardshipē Environment, Healthand Safety

ē
ē
ē
ē
ē
ē
ē
ē

Management

Environment Overview
Emissions

EnergyLong-Term Emissions Ambitions

100% Renewable Electricity, Contributing to Our 2035
Goal of Being Carbon Neutral

2027 Mid-Term Emissions Goal

50% Renewable Electricity Use

Water

Waste

Hazardous Materials
Health and Safetyē Team Members
ē Social Responsibility

2023 Emissions Performance

39% Renewable Electricity Use

ē Governanceē Data and Indicesē Appendicesē Forward-Looking

Statements

57

NXP Corporate Sustainability Report

Primary sources of energy for our manufacturing, testing and office sites come fromthe electrical grid. We purchase renewable electricity when available and continue
to purchase electricity from fossil-fuel sources in jurisdictions where reliable andabundant alternative energy sources are not available.
We use natural gas to power heating, cooling and humidity-management equipment
critical to manufacturing and test processes and diesel fuel for emergency generators.
The emissions from these fossil fuels are included in the totals of our Scope 1 emissions.

Environment, Health and Safety: Energy
ē Introduction
ē Sustainability Strategy

Semiconductor manufacturing is an electricity-intensive process, with wafer
fabrication requiring more electricity than assembly and test. Electricity consumed
at our non-manufacturing sites accounts for only 3% of NXP's total consumption.

ē Our Businessē Product StewardshipElectricity Results

Electricity Overview

2023 Total Absolute Electricity-Consumption Performance

1%

5%

Decrease from 2022

11%

Increase from 2021
Baseline

2023
Manufacturing
Electricity
Consumption
2023
Manufacturing
Electricity
Consumption

Increase from 2014

ē Environment, Healthand Safety

ē
ē
ē
ē
ē
ē
ē
ē

Management

Environment Overview

41%

Emissions

Energy
Water

59%

Waste

We produce increasingly complex products that involve many more processing steps,
requiring greater electricity consumption. Our ongoing efforts to conserve electricity
and optimize our manufacturing processes have helped us use electricity more
efficiently. Compared to 2014, our absolute electricity consumption has increased only
11%. In 2023, our absolute electricity consumption decreased by 1% compared to 2022.

Hazardous Materials
Health and Safetyē Team Members

Does Not Contain
Contains
SVHC
SVHC> 0.1%> 0.1%

Assembly and Test

Manufacturing and Non-Manufacturing Electricity Consumption

Wafer Fabs

Manufacturing and Non-Manufacturing Electricity Consumption

ē Social Responsibility

ē Data and IndicesStatements

97%
Does Not Contain
Contains
SVHC
SVHC> 0.1%> 0.1%

Non-Manufacturing

NXP Corporate Sustainability Report

1,514

1,521

1,525

1,526

1,551

1,540

1,534

1,610

1,702

1,684

1,000

ē Forward-Looking

58

2,000
1,500

ē Appendices3

Manufacturing

2

1

500
0

2014

2015

2016

2017

2018

Total Electricity Consumption

2019

2020

2021

2022

Normalized Electricity Consumption

2023

0

kWh/cm23%

2,500

Gigawatt Hours (GWh)ē Governance

2023
Manufacturing
and2023
Manufacturing
andNon-Manufacturing
Electricity
Consumption
Non-Manufacturing
Electricity
Consumption

Environment, Health and Safety: Energyē Sustainability Strategy
ē Our Businessē Product Stewardshipē Environment, Healthand Safety

ē
ē
ē
ē
ē
ē
ē
ē

Management

Environment Overview
Emissions

Energy
Water

Waste

Hazardous Materials

Electricity Consumption

This sub-section includes data from manufacturing and non-manufacturing sites.
Manufacturing
To reduce our consumption of electricity, our manufacturing sites continually optimize
processes and replace or upgrade equipment. Examples of this ongoing work include
the following:• Reducing air-flow velocity in clean rooms• Reducing and optimizing exhaust and air-extraction systems• Upgrading air dryers• Optimizing the water flows of cooling towers• Purchasing energy-efficient chillers, compressors and vacuum pumps• Powering equipment off when not in use• Upgrading to LED lighting

Health and Safety

ē Forward-Looking

Statements

70

1,400
1,200

542

551

542

551

563

NXP Corporate Sustainability Report

540

608

670

670

1,000
800
600
400

908

907

928

930

937

944

944

952

979

966

200
0

63

63

60

54

50

51

51

50

50

2018

2019

2020

2021

45

54
48

40
30
20
10

2014

2015

2016

2017

2018

Wafer Fabs

59

545

Non-Manufacturing Electricity Consumption

80

1,600
Gigawatt Hours (GWh)ē Appendices

Manufacturing Electricity Consumption

1,800

ē Social Responsibility

ē Data and Indices

Non-Manufacturing Electricity Consumption

Manufacturing Electricity Consumption

ē Team Members

ē Governance

Non-Manufacturing
Electricity at our offices and R&D sites represents 3% of our total consumption. In 2023,
our absolute non-manufacturing electricity consumption decreased by 10% compared
to 2022 and 24% compared to 2014. Our non-manufacturing electricity consumption
decreased by 24%, mainly due to site consolidation and various site-specific projects,
such as switching to LED bulbs and communicating more with team members about
energy conservation.

Gigawatt Hours (GWh)ē Introduction

2019

2020

Assembly and Test

2021

2022

2023

0

2014

2015

2016

2017

2022

2023

Environment, Health and Safety: Energy
ē Introduction
ē Sustainability Strategy
ē Our Businessē Product StewardshipElectricity Sources9

Renewable and Non-Renewable Electricity Sources

This section includes manufacturing sites only.
Electricity is generated from a variety of energy sources and these sources varydepending on region and country. Currently, we use a mix of energy sources becauseof their availability, stability and reliability. However, our ambition is to transition to100% renewable electricity.

and Safety

Management
Emissions

39%

Energy40%

Water

Health and Safety1%ē Team Members

6%
Natural Gas
Coal

Natural Gas

ē Social Responsibility

ē Forward-Looking

Nuclear

Coal

Other Non-Renewable

Other

23

24

32

31

83

83

80

77

77

76

68

69

65

2014

2015

2016

2017

2018

2019

2020

2021

2022

35

39

61

2023

Renewable

Renewable

NuclearRenewable

Renewable Electricity
Since 2015, we have steadily increased our use of electricity that comes fromrenewable sources. In 2023, 39%11 of our overall electricity use was from renewableenergy sources. Overall, our renewable electricity usage increased by 4 percentage
points compared to 2022, to a total of 39% renewable electricity for the company
overall in 2023. Since we set our renewable energy target in 2021, our renewableelectricity usage has increased by 9 percentage points.
Renewable-energy information from utility providers is published after the release of our annual Corporate
Sustainability Report. Utility providers are approximately one year behind our reporting schedule. We makeadjustments as needed for the previous reporting year’s data on renewable energy.
10
These values reflect energy sources from the grid as well as purchased international renewable energy credits(iRECs). Our numbers for grid sources are market-based and reflect the most recent data available from utility
companies. As a result, grid data may not exclusively reflect the 2023 calendar year.
11
Occasionally, utility companies revise their reported percentage of renewable energy. When this happens,
we use the utility's revised information to update our historical figures.
9

NXP Corporate Sustainability Report

23

14%

Statements

60

20

Non-Renewable

Hazardous Materials

ē Appendices

17

75%

0%

Waste

ē Data and Indices

17

25%

Environment Overview

ē Governance

100%

50%

2023 Electricity Sources102023 Electricity Sources10

ē Environment, Health
ē
ē
ē
ē
ē
ē
ē
ē

Renewable and Non-Renewable Electricity Sources

To increase our access to renewable energy, solar installations areunderway in our Bangkok, Thailand, Kuala Lumpur, Malaysia and Kaohsuing,
Taiwan locations. This renewable electricity will be used to offset some ofthe higher carbon-content electricity available from local utilities. We are
evaluating similar installations at our other locations.

Environment, Health and Safety: Energy
ē Introduction
ē Sustainability Strategy
ē Our Businessē Product Stewardshipē Environment, Healthand Safety

Management

Natural Gas

We mostly use natural gas to heat buildings, generate steam for humidity and run ouremissions-abatement equipment. Our use of natural gas depends strongly on both
external weather and our internal production activity. Our consumption has remained
relatively stable over the past few years, but has increased in part due to factory
expansion. In 2023, our absolute natural-gas consumption decreased 1% compared
to 2022, however consumption increased by 2% compared to our baseline year, 2021,
and by 5% compared to 2014.
Natural-Gas Consumption

Environment Overview
Emissions

Energy
Water

Waste

Hazardous Materials
Health and Safetyē Team Members
ē Social Responsibility
ē Governanceē Data and Indicesē Appendicesē Forward-Looking

Statements

61

Our direct energy consumption metrics include data from manufacturing sites only.

NXP Corporate Sustainability Report

Natural-Gas Consumption
25,00021,774

Thousand Cubic Meters (m3)

ē
ē
ē
ē
ē
ē
ē
ē

Direct Energy Consumption

20,00020,022

20,792

20,34820,614

2016

2017

2018

21,173

21,16120192020

22,33323,09422,8892022

2023

15,00010,000
5,000
0

2014

2015

2021

Environment, Health and Safety: Energy
ē Introduction
ē Sustainability Strategy
ē Our Business

Diesel Fuel

In case of power interruptions, we have diesel-driven emergency generators that
support essential safety systems. Our consumption of diesel fuel fluctuates depending
on how often we test or need to use these emergency safety systems. We used 25%
less diesel in 2023 compared to 2022 and 64% less since our baseline year, 2021.

ē Product Stewardshipē Environment, Healthand Safety

Management

Environment Overview
EnergyDiesel-Fuel Consumption

Water

Hazardous Materials

150

144

Health and Safety

ē Social Responsibility
ē Governanceē Data and Indicesē Appendicesē Forward-Looking

Statements

NXP Corporate Sustainability Report

Other Fossil-Fuel Consumption

Diesel-Fuel Consumption

Other Fossil-Fuel Consumption
50,000138

42,852120

40,000

104

90
67

62

60

52

54

54

50

39

30
0

Gigajoules (GJ)

Waste

ē Team Members

62

Other fossil fuels we use include gasoline, liquefied petroleum gas (LPG) and town
gas. LPG is a relatively clean-burning fossil fuel that, compared to gasoline, produces
fewer emissions and is safer to use indoors. We use LPG to run forklifts and in some of
our onsite cafeterias. Town gas, also known as coal gas, is a manufactured gaseous
fuel made from coal and is used for heating in some geographic regions, including
Asia. We use town gas as part of the recent expansion at our SSMC wafer fab in
Singapore, which accounts for the increase in other fossil-fuel consumption in 2022.
However, this accounts for a relatively small portion of our overall carbon footprint.
In 2023, our consumption of other fossil fuels decreased by 23% from 2022, but has
increased by 54% since 2014. Since our 2021 baseline, other fossil fuel emissions haveincreased by 5%.

EmissionsThousand Kilograms (kg)

ē
ē
ē
ē
ē
ē
ē
ē

Other Fossil Fuels

30,00020,00025,724
21,45021,422

2014

2015

28,727

27,73620172018

32,80632,87920192020

32,97731,43910,000

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

0

2016

2021

2022

2023

Environment, Health and Safety: Water
ē Introduction

Long-Term Water Ambition

ē Sustainability Strategy
ē Our Business

Minimize Impact on Global Water Supplies

ē Product Stewardshipē Environment, Healthand Safety

ē
ē
ē
ē
ē
ē
ē
ē

Management

Environment Overview

2027 Mid-Term Water Goal

60% of Water Recycled

Emissions
Energy2023 Water Performance

Water

Waste

Hazardous Materials
Health and Safetyē Team Members

51%of Water Recycled

15

Percentage-Point Increase
from 2014

ē Social Responsibility
ē Governanceē Data and Indicesē Appendicesē Forward-Looking

Statements

Semiconductor manufacturing, especially wafer fabrication, is a water-intensive
process. It also creates wastewater that is discharged from our manufacturing sites.
Our global water strategy includes a focus on conservation, recycling and highstandards for wastewater treatment and discharge.
We understand that, in addition to impacting our manufacturing sites, water
availability also impacts other industrial, agricultural and residential users in thecommunities where we operate. By using less water, we can help increase the supply
for others in our communities.
Since drastically reducing the amount of water used within our manufacturing
processes is not currently feasible, we anticipate that our demand for water will
increase in line with our increases in production. To reduce the amount of incomingwater we consume, we focus on a mid-term goal of increasing our water recycling
rate to 60% by 2027.

63

NXP Corporate Sustainability Report

Environment, Health and Safety: Water
ē Introduction
ē Sustainability Strategy
ē Our Businessē Product Stewardshipē Environment, Healthand Safety

ē
ē
ē
ē
ē
ē
ē
ē

Management

Environment Overview
Emissions
Energy

Water

Waste

Hazardous Materials
Health and Safetyē Team Members
ē Social Responsibility
ē GovernanceOur water-related metrics include data from manufacturing sites only. Many of ourmanufacturing sites are located in semi-arid regions that may become increasingly
vulnerable to prolonged droughts associated with evolving changes to the climate,which may lead to resource scarcity. Each manufacturing site is addressing theimpacts of water scarcity based on their location and we are identifying best practices
associated with water recycling and conservation in order to reach our mid-term goal.

ē Forward-Looking

Statements

64

NXP Corporate Sustainability Report

2023 Absolute Water-Withdrawal Performance1%

Decrease from 2022

Global Water Stress Scores

The Water Stress Index (WSI) evaluation tool is used by the United Nations and otherorganizations to study the relationship between water use and water availability.
The WSI, published by the data-analysis company Verisk Maplecroft, quantifies
baseline water stress where water naturally collects, at the catchment level, while also
identifying localized variations within the catchment boundaries. A risk category is
assigned to each catchment based on the ratio of water use to renewable supply, so
it's easier to visualize the inherent water stress in the area. Within catchments, the map
reflects different levels of combined demand for domestic, industrial and agricultural
water.
WSI scores are divided into four risk categories: extreme (0.0-2.5), high (>2.5-5.0),
medium (>5.0-7.5) and low (>7.5-10.0). The index is based on mean annual water
stress and therefore the seasonality of water stress is not captured. Countries
and regions are assigned a rank according to their relative position in each index.
According to the WSI evaluation tool, many of our manufacturing and testing sites
are located in semi-arid regions and five are identified as extreme or high risk. These
manufacturing sites may become increasingly vulnerable to water scarcity.

ē Data and Indicesē Appendices

Water Withdrawal

8%

11%

Increase from 2021
Baseline

Increase from 2014

As semiconductor technology evolves, manufacturing processes become more
complex. Smaller, faster semiconductors require more process steps to produce,
which in turn increases the amount of water used for cleaning, so as to ensure productquality and process safety. Total water withdrawal can also increase due to factory
expansion.
In 2023, our absolute water withdrawal decreased by 1% compared to 2022.
Semiconductor wafer fabrication represents 68% of our total manufacturing water
withdrawal, while assembly and test represent 32%.
2023
2023 Water
Water Withdrawal
Withdrawal

32%2023 Water Stress Index (WSI) Scores
Wafer Fabrication Site

Score

Assembly and Test Site

Score

ATMC, Austin, Texas, US

5.7

Bangkok, Thailand

5.3

Chandler, Arizona, US

0.0

Kaohsiung, Taiwan

3.8

Nijmegen, Netherlands

7.7

Kuala Lumpur, Malaysia

2.8

Oak Hill, Austin, Texas, US

5.7

Tianjin, Mainland China

0.0

SSMC, Singapore

0.0

68%

Does Not Contain
Contains
SVHC
SVHC> 0.1%> 0.1%

Assembly and Test

Wafer Fabs

Environment, Health and Safety: Water
ē Introduction
ē Sustainability Strategy
ē Our Businessē Product Stewardshipē Environment, Healthand Safety

Management

Environment Overview
Emissions
EnergyWater

Recycled water represented 51% of our total water use in 2023, meaning we used about
the same amount of recycled water as non-recycled water. We identified a mid-termgoal for water recycling, with a target of recycling 60% of our water by 2027. Setting
a mid-term goal reflects our understanding that increasing the amount of water werecycle generates positive results for NXP and our communities.
Our decade-long focus on water conservation has emphasized the use of more
efficient tools, taking advantage of opportunities to increase water recycling andfinding ways to optimize processes. A large part of our water consumption is fixed,
such as the use of water for chillers, plating and cleaning. As a result of the lower
loading in our factories, the normalized consumption went up. In addition to our water
recycling efforts, we are looking at options to reduce the overall water consumption.

Waste

Hazardous Materials

Water Withdrawal

Health and Safety

ē Social Responsibility

2023Water
Water Withdrawal
Withdrawal by
by TypeType
2023

2023 Water
2023
Water Recycling
Recycling

Statements

15

12,00010,00049%

ē Data and Indicesē Forward-Looking

20

14,0006%

ē Governanceē Appendices

Water Withdrawal

16,00051%

94%Does Not Contain
Contains
SVHC
SVHC> 0.1%> 0.1%

Purchased Third-Party Water

Extracted Ground Water

Does Not Contain
Contains
SVHC
SVHC> 0.1%> 0.1%

Recycled

Non-Recycled

3,265

3,265

3,283

8,000

3,518

3,522

3,290

3,307

3,940

4,269

4,008

10

6,000
4,000

8,067

8,069

7,886

7,418

7,406

7,442

7,313

7,700

8,354

8,547

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2,000
0

Water Withdrawal from Wafer Fabs

Water Withdrawal from Assembly and Test
Normalized Water Withdrawal

65

NXP Corporate Sustainability Report

50Liters/cm2

ē Team Members

Thousand Cubic Meter (m3)

ē
ē
ē
ē
ē
ē
ē
ē

At our manufacturing sites, water mostly comes from nearby municipal facilities.
The Nijmegen and Oak Hill facilities are our only manufacturing sites that extract
well water, together representing 6% of our total water withdrawal.

Environment, Health and Safety: Water
Water Recyclingē Introduction

2023 Water-Recycling Performanceē Sustainability Strategy

51% of Water Recycled

ē Our Businessē Product Stewardship2

ē Environment, Healthand Safety

ē
ē
ē
ē
ē
ē
ē
ē

3

Percentage-Point
Increase from 2022

Management

Environment Overview

15

Percentage-Point
Increase from 2021
Baseline

Emissions

Percentage-Point
Increase from 2014

Energy

Water

Waste

Hazardous Materials
Health and Safetyē Team Members
ē Social Responsibility

We implement projects that collect and recycle water at our manufacturing sites.
This reduces the amount of incoming water consumption and reduces our reliance on
local water supplies. Since 2014, our percentage of water recycling has increased by
15 percentage points, and 2 percentage points compared to 2022. As of year-end 2023,
we recycle 51% of our water and have Recycled
createda task force to identify new opportunities
Water
for water recycling, so we can achieve our 2027 goal of 60% recycled water.

ē Governance

Recycled Water1260%

ē Data and Indices50%

ē Appendices40%

ē Forward-Looking

Statements

30%

20%

12

66

NXP Corporate Sustainability Report

2014

2015

2016

2017

2018

Recycled-water data only includes manufacturing sites.

2019

2020

2021

2022

2023

Environment, Health and Safety: Water
ē Introduction
ē Sustainability Strategy
ē Our Businessē Product Stewardshipē Environment, Healthand Safety

ē
ē
ē
ē
ē
ē
ē
ē

Management

Environment Overview
Emissions
Energy

Water

Waste

Hazardous Materials
Health and Safetyē Team Members
ē Social Responsibility
ē Governanceē Data and Indicesē Appendicesē Forward-Looking

Statements

67

NXP Corporate Sustainability Report

Wastewater

We are committed to returning water to the environment that is as clean as, orcleaner than, what we sourced. We employ onsite water-treatment facilities to treat
wastewater outflows and ensure any chemical constituents from our wastewater that
could potentially impact the environment are avoided. Our Facility Teams continuously
monitor and test our water, as required by local authorities, and aim to discharge
wastewater that is cleaner than what local regulations require.
We set our effluent discharge standards to meet or exceed local discharge
requirements based on the profile of the receiving water body. Our water-pollutant
identification and classification process also varies by region and site. Threeapproaches we use to assess potential water pollutants include: 1) internal parameter/
chemical monitoring before discharge; 2) third-party sampling and reporting ofresults; and 3) regulatory agency sampling and reporting of results.
In late 2020, we included wastewater discharge in our data-management systemand, as of 2022, publicly disclose our wastewater discharge. Our total wastewater
discharge is less than our total water retrieval because a certain amount of water islost due to evaporation (caused by cooling towers and condensed-air humidifiersin our factories), landscape irrigation and as part of non-hazardous sludge disposal.
We do not measure evaporation directly, but recognize that the weather can impact
evaporation rates. In 2023, lower evaporation rates, related to weather in affectedareas, may have increased our wastewater discharge although our rate of water
retrieval was lower.
NXP did not receive any excursions, fines or penalties in 2023 related to wastewater
discharge.

Wastewater Discharge
Total Wastewater Discharge

Unit

2022

2023

m3

8,753,231

8,896,447

The two manufacturing sites in Texas, Austin and Oak Hill, received the cityof Austin's 2023 award for Excellence in Wastewater Pretreatment (basedon 2022 performance). The award honors significant industrial water users
who exhibit environmental stewardship by proactively preventing pollution
and managing wastewater discharge. This is the ninth consecutive year forAustin to receive the award and the eighth for Oak Hill.

Environment, Health and Safety: Wasteē Introduction

Long-Term Waste Ambition

ē Sustainability Strategy

Develop Collaborative Circular-Economy Solutions

ē Our Businessē Product Stewardship

2027 Mid-Term Waste Goal

ē Environment, Healthand Safety

ē
ē
ē
ē
ē
ē
ē
ē

90% of Waste Recycled

Management

Environment Overview
Emissions
Energy2023 Waste Performance

Water

Waste

86% of Waste Recycled

Hazardous Materials
Health and Safetyē Team Members
ē Social Responsibility
ē Governanceē Data and Indicesē Appendicesē Forward-Looking

Statements

68

NXP Corporate Sustainability Report

Semiconductor manufacturing generates hazardous and non-hazardous waste
streams, including lithography-related solvents, metal-plating waste, specialty
cleaners, spent sulfuric acid, ammonium sulfate and calcium fluoride. Our operations
generate paper, plastic, metal and kitchen waste, along with general office waste. We
also have one-time waste from construction and/or other one-time manufacturing
activities. The waste-related metrics in this Report include data from predominantly
manufacturing sites.

Goals

We continue to evolve our approach to the sourcing, consumption and disposal ofmaterials critical to the manufacturing and testing of our products. We have set a
mid-term goal of recycling 90% of our waste by keeping products and materials in
use via reuse, resale, repurposing and recycling. We understand that reducing or
eliminating waste streams not only contributes to greater operational efficiencies but
also contributes to a more sustainable circular economy. Our long-term ambition is
to collaborate with our supply chain to develop better, more sustainable products.

Environment, Health and Safety: Wasteē Introduction
ē Sustainability Strategy
ē Our Businessē Product Stewardshipē Environment, Healthand Safety

ē
ē
ē
ē
ē
ē
ē
ē

Management

Environment Overview
Emissions
Energy
Water

Waste

Hazardous Materials
Health and Safetyē Team Members
ē Social Responsibility
ē Governanceē Data and Indicesē Appendicesē Forward-Looking

Statements

69

NXP Corporate Sustainability Report

We know we can add value by looking at our entire supply chain and asking, at eachpoint in the chain, if any or all waste can be repurposed as an input to the system.
We will continue to work with our supply chain to purchase goods and services locallyand to find alternate uses for materials we have as by-products. We believe weplay a crucial role in helping our supply chain adopt circular-economy principles.
Going forward, we plan to continue identifying additional opportunities to reduce
environmental impacts, unlock potential value and enable the setting of future
performance goals.

Approach

We are committed to reducing the amount of waste we send to landfill and work torecycle/reuse the waste we generate. We continue to collaborate with our supply
chain to identify opportunities for waste reduction or alternative use and look forways to reduce manufacturing waste by improving yield, optimizing processes andminimizing the waste of scrap material. As part of this approach, we do the following:

Promoting a Circular Economy

Moving toward a circular economy, by finding ways to keep products and materials
in circulation through processes like maintenance, reuse, refurbishment and recycling,
benefits the environment, our communities and our company. We believe thatmeaningful change toward a more sustainable and circular future must come witha systematic approach to our efforts, and must guide the decisions we make. NXP
works to advance the circular economy vision by doing the following:• Striving to decrease the amount of our generated waste, increase the rate ofrecycling and investigate viable reuse methods for manufacturing byproducts• Accounting for sustainability in our design processes, and taking measures to
produce high-quality products with extended life-cycles for our customers• Continuously seeking ways to develop more sustainable means of production

Waste Results• Recycle/reuse spent materials, such as sulfuric-acid waste and then sell thematerials to other companies for their use• Expand our list of recycling vendors in local regions• Identify recycling vendors who can recover precious metals from our e-scrap
and finished product• Replace single-use plastic in our cafeterias, cafés and pantries with sustainable
and reusable alternatives

2023 Total Waste Performance1%

Decrease from 202217%

Decrease from 2021
Baseline

21%

Increase from 2014

Our total waste generation includes regular ongoing waste generated by our
manufacturing sites (including manufacturing, office and cafeteria waste), as well as
one-time waste. We consider one-time waste to be those waste streams that are notgenerated as part of normal operations but rather by unique, one-time projects. Onetime waste accounted for less than 1% of total waste generation in 2023 and is
not included in our normal waste metrics and analysis unless otherwise indicated.
In 2023, our efforts to reduce, reuse and recycle the waste produced by our
manufacturing processes improved our overall waste performance. Compared to2022, our hazardous waste decreased by 6%. Additionally, our total amount of waste
sent to landfill decreased by 19% and our total amount of non-hazardous waste sent tolandfill decreased by 16%. We continue to review opportunities for further improvement.

Environment, Health and Safety: Wasteē Introduction

Waste Directed to Disposal13

6,000

ē Our Business

5,000

and Safety

ē
ē
ē
ē
ē
ē
ē
ē

Management

Environment Overview
Emissions
Water

11%
2,721

4,000
3,000

2,580
2,638

2,588

1,000

2,178

2,065

2,594

2,176

1,882

2,082

2,122

1,955

2,400

2,786

3,084

3,330

2,975

86%
2,792

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

Health and Safety

ē Social Responsibility
ē Governanceē Data and Indicesē AppendicesIncineration

Landfill

Incineration

Disposal and Diversion of Total Waste14

Non-Hazardous

Hazardous Materials

ē Team Members

Recycling Landfill

Recycling

Hazardous

Waste

2,292

2,405

2,000

0

Energy3%

Disposal and Diversion of Total Waste13
25,000We have waste-reduction management programs in place at our sites to handle
hazardous and non-hazardous waste in an environmentally responsible manner.
For any waste that requires special handling, we ship it to vendors equipped withthe knowledge and expertise to properly reclaim, recycle or destroy it. All our waste
handling is done according to local rules and regulations.
We regularly audit our waste-management vendors to confirm they are meetingcompliance requirements, handling waste responsibly and managing disposal
with minimal impact to the environment.

537 –––

20,000Thousand Kilograms (kg)

ē Environment, HealthThousand Kilograms (kg)ē Sustainability Strategy

ē Product Stewardship

2023
Waste
Recycling1313
2023
Wasteby
byDisposal
DisposalMethod
Method andand andand Recycling

Waste Directed to Disposal

15,000Statements

2,216

185
923
1,269

190
1,121
1,291

2,395

271
864
1,354

10,00015,055

14,731

20182019

11,800

5,000

2020

Recycling70

NXP Corporate Sustainability Report

Recycling percentage includes waste-to-energy incineration.

535 –––

86
1,107
1,386

2,101

19,041

19,5432022

2023

14,8262021

Landfill Non-Hazardous

Incineration Non-Hazardous

13

1,448
1,658

2,102

0

ē Forward-Looking

189
887
1,367

320

Landfill Hazardous

Incineration Hazardous

Environment, Health and Safety: Wasteē Introduction

Recyclingē Sustainability Strategy
ē Our Businessē Product Stewardshipē Environment, Healthand Safety

ē
ē
ē
ē
ē
ē
ē
ē

Management

Environment Overview
Emissions
Energy86% of Waste Recycled
3

Percentage-Point
Increase from 2022

10

Percentage-Point
Increase from 2021
Baseline

13

Percentage-Point
Increase from 2014

Water

Waste

Hazardous Materials
Health and Safetyē Team Members
ē Social Responsibility
ē Governanceē Data and Indicesē Appendicesē Forward-Looking

Statements

71

2023 Recycling Rate Performance

NXP Corporate Sustainability Report

We collect and recycle a variety of materials, including office waste (paper, cardboard
and beverage containers), cafeteria waste (food and other compostable items), items
from support operations (scrap metal, wood, coolant chemicals and calcium-fluoride
cakes used in wastewater treatment) and manufacturing materials (spent acids andsolvents, waste molding compound, plating hazardous waste, etc.).
In 2023, we recycled 86% of our total waste (hazardous and non-hazardous), an
increase of 3 percentage points compared to 2022. Our recycling rate includes wasteto-energy activities, which involves the conversion of non-recyclable waste materials
into usable heat, electricity or fuel through incineration. If we exclude waste-to-energy,
the 2023 recycle rate is 79%. We increased the recycle rate by continuing to search forrecycling vendors who can add to our recycling opportunities.

Environment, Health and Safety: Waste
Recycling rate

Semiconductor manufacturing includes dealing with leftover scrap material, such as
failed products and test devices, as well as used metal, engineering materials andsilicon. Some scrap material contains precious metals (gold, palladium, platinum
and silver) and non-precious metals (copper, nickel and tin). Our E-Scrap Program
ships scrap waste to processing plants that reclaim and recover these valuable(and potentially toxic) metals to reduce the amount of e-waste sent to landfills.

90%

ē Sustainability Strategy

85%

ē Our Business

80%
75%

ē Product Stewardship70%

ē Environment, Health65%

and Safety

60%Management

Environment Overview

2014

2015

2016

2017

2018

2019

2020

2021

2023

Emissions

E-Scrap Reclaimed16

EnergyWater

E-Scrap Reclaimed14

Waste

Hazardous Materials
Health and Safety

1,000

The waste by-product of chip manufacturing, usually called “sludge,”
consists of water and particles of various materials that could be
hazardous to the environment if not contained. Reducing and repurposing
sludge is a thorny technical challenge for the semiconductor industry.

ē Team Members
ē Social Responsibility
ē Governance

NXP’s facility in Taiwan is making meaningful progress addressing thischallenge. The team is working with a third-party partner to process its
sludge and extract minerals, including recovering refined copper which
is sold and used by other manufacturers. The facility has increased theirwaste recycling rate to above their 92% target, while processing remaining
waste in innovative ways.

ē Data and Indicesē Appendicesē Forward-Looking

Statements

14

72

2022

In 2023, our e-scrap went down mainly due to process-yield improvements
implemented during the year. Since 2015, we have implemented various programs
to improve the identification and collection of e-scrap, but the overall approach is
to decrease the amount of e-scrap by increasing efficiencies in process yield.

NXP Corporate Sustainability Report

This data is collected on an annual basis, but is not aligned with the calendar year.

Thousand Kilograms (kg)

ē
ē
ē
ē
ē
ē
ē
ē

E-Scrap Reclaim

Recycling Rateē Introduction

800
600
400
200
0

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

Environment, Health and Safety: Hazardous Materials
ē Introduction
ē Sustainability Strategy
ē Our Businessē Product Stewardshipē Environment, Healthand Safety

ē
ē
ē
ē
ē
ē
ē
ē

Management

Environment Overview
Emissions
Energy
Water

Waste

Hazardous Materials
Materials
Health and Safetyē Team Members
ē Social Responsibility
ē Governanceē Data and Indicesē Appendicesē Forward-Looking

Statements73

NXP Corporate Sustainability Report

The semiconductor industry as a whole uses a wide variety of chemicals and materials
in wafer fabs, assembly and test facilities and in final products sold. Some of thesechemicals and materials are highly specific and vital to specific process technologies
and/or products. At NXP, we have several programs in place to regulate our useof hazardous chemicals and materials and we follow some of the most rigorous
standards in the industry for protecting our team members, our customers and theenvironment.
We focus on select chemicals to minimize and/or phase out based on regulatory orother potential risks. Specific near-term challenges for the semiconductor industry
include addressing concerns related to per- and polyfluoroalkyl substances (PFAS),
hydrofluorocarbons (HFCs), phthalates and die-bond epoxies.
NXP takes a multi-tiered approach when working with chemicals. That includes finding
safer and/or alternative materials, providing engineering controls to separate teammembers from potential emissions, providing personal protective equipment (PPE),
creating standard operating procedures that take into consideration operational risks,
providing training and awareness to enhance personal safety and routine monitoringof industrial work areas to ensure hygiene monitoring, which includes monitoring
the ambient air and team-member health to ensure all controls are functioning andeffective.
Our mid-term goal for 2027 is to recycle 90% of all waste, including hazardous waste.
Much of the waste NXP currently generates, while considered hazardous, is often clean
enough for use as "virgin" raw materials in other industries. NXP works with vendors to
redirect these waste streams, as applicable to other companies, while increasing ourrecycling percentage.
NXP must always comply with all relevant legislation and aims to stay ahead of
new chemical legislation and customer requirements. Our chemical-management
programs are guided by two primary objectives. First, we must control the risks posedby chemicals used in our production processes, in terms of team-member health andsafety, as well as environmental effects, such as pollution, climate change and ozone
depletion. Second, we must ensure that any products and shipping materials we
supply pose no or negligible risk, due to the presence of hazardous chemicals, to ourcustomers or the environment.

Environment, Health and Safety: Hazardous Materials
ē Introduction
ē Sustainability Strategy
ē Our Businessē Product Stewardshipē Environment, Healthand Safety

ē
ē
ē
ē
ē
ē
ē
ē

Management

Environment Overview
Emissions
Energy
Water

Waste

Hazardous Materials
Materials
Health and Safetyē Team Members
ē Social Responsibility
ē Governanceē Data and Indicesē Appendicesē Forward-Looking

Statements

74

NXP Corporate Sustainability Report

Ozone-Depleting Substances

Ozone-depleting substances (ODSs) are long-lived gases, containing chlorine and/or
bromine, that destroy ozone when they reach the earth’s protective ozone layer in thestratosphere. Some ODSs do more damage than others. The ozone-depleting potential(ODP) of an ODS indicates its relative harmfulness to the ozone layer. The higher the
ODP number, the more damage the ODS does in the ozone layer. Some greenhousegases, including HFCs, do not contain chlorine and, as a result, have a zero ODP rating.
These gases are referred to as non-ODP substances and, in some cases, can be used
to replace ODSs.
As of 2007, we phased out the use of all ODSs in our manufacturing processes andthese substances are now prohibited at our manufacturing sites. When an airconditioning system that uses ODS refrigerants is scheduled for replacement, we
replace it with a new system that doesn’t use ODS. The majority of air conditioners
that use ODS refrigerants have either already been replaced or are being replaced
wherever possible and practical.

Substances of Concern

NXP is committed to the safe handling of all substances of concern. We continually
search for alternative substances and aim to discontinue using all substances ofconcern except those that don't have a safe, proven manufacturing alternative.

GovernanceAn internal Chemical Management Committee meets regularly to review current andpending regulations, such as the Registration, Evaluation, Authorisation and Restrictionof Chemicals (REACH) and the Restriction of Hazardous Substances (RoHS), as wellas the requirements of various governmental organizations, including the European
Union and, in the United States, the Occupational Safety and Health Administration(OSHA) and the Environmental Protection Agency (EPA). The goal is to not only
remain compliant and proactive but also, where possible, exceed legal and safety
requirements.
Our Chemical Management Committee consists of cross-functional team members
from Sustainability, Environment, Health and Safety and Environmental ProductCompliance. Working collaboratively, the Committee has succeeded in implementing
global processes and procedures that serve to keep our team members safe andminimize our environmental impact. The Chemical Management Committee reports
progress to the EHS Management Board.

PFOS/PFOA Commitment

NXP complies with the World Semiconductor Council’s (WSC’s) Voluntary Agreement
for Perfluorooctyl Sulfonates (PFOS). In 2017, we eliminated all manufacturing
uses of PFOS. In previous years, we made notable progress in also eliminating all
manufacturing use of Perfluorooctanoic Acid (PFOA).

Processes and Procedures
NXP Corporate Chemical Control Standard – Provides direction regarding chemical
controls, approval of chemicals, transport of chemicals, reporting and otherrequirements to or by Corporate EHS.
Approval Requirements for New Chemicals – Before any new chemicals arepurchased or brought onsite, EHS approval is required across multiple systems. During
the chemical review, the local industrial hygienist and the safety expert conduct a
dedicated risk assessment, reviewing all EHS aspects, such as exposure to humans,
environment and/or safety. The EHS Teams also review environmental regulations toensure that new chemicals are not in violation of governmental requirements.
Prohibited and Restricted Chemicals Standard – Corporate EHS maintains a list ofchemicals that are either prohibited in manufacturing or restricted, meaning theiruse is limited to specific applications and accompanied by detailed risk-mitigation
measures. Any onsite usage is reviewed and approved by managers via an electronic
waiver system. The list of prohibited and restricted chemicals is based on current
and future regulations (e.g., REACH, RoHS) and also reflects customer requests.
Onsite teams review and evaluate local restrictions and regulations regarding suchchemicals.
Management of Safety Data Sheets – Safety Data Sheets are managed in a corporate
system that allows for global NXP reporting. Local team members are able to view allsite-applicable data sheets as needed for their job functions.
Environmental Product Centralized Database – We use databases to register andclassify substances used in our products. Following the same approach as withprocess chemicals, restrictions of product substances are based on current andupcoming regulations (e.g., REACH, RoHS) and customer requests. Our system uses
comprehensive information on substances, product-structure data, the latest
legislative guidance and customer restrictions to calculate, track and report on thecompliance of our materials.

Environment, Health and Safety: Health and Safety
ē Introduction

Long-Term Ambition

ē Sustainability Strategy
ē Our Business

Achieve Zero Workplace Injuries and Illnesses

ē Product Stewardshipē Environment, Healthand Safety

ē
ē
ē
ē
ē
ē
ē
ē

Management

Environment Overview
Emissions
EnergyWater

Maintained a Low
Total Case Incident
Rate (TCIR) of

0.10

ISO 45001

Management System
CertifiedOak Hill Site Achieved

Super Star
Among Stars
Recognition Levelin OSHA VPP

Waste

Hazardous Materials

Health and Safetyē Team Members
ē Social Responsibility
ē Governanceē Data and Indicesē Appendicesē Forward-Looking

Statements

75

2023 Health and Safety Performance

NXP Corporate Sustainability Report

Overview

We continuously assess safety risks to ensure they are mitigated where possible.
We are certified to ISO 45001, the Occupational Health and Safety Management
System, and have developed robust Health and Safety programs and initiatives tosafeguard our team members, partners and visitors. As part of that certification, every
manufacturing site has an employee worker-safety council, which allows all levels of
employees to be involved in our Environment, Health and Safety (EHS) Management
System process, from incident investigation and identifying hazards to assessing risks
and opportunities.
In 2022, as a follow-up to our 2019 survey, we conducted a global employee safetysurvey, inquiring about opportunities for improvement and asking how comfortable
employees are about raising safety concerns. Overall, 98% of employees felt thatsafety starts with them and 94% felt that safety concerns are a high priority for NXP.
We will continue to address individual site opportunities based on the results.

Environment, Health and Safety: Health and Safety
ē Introduction
ē Sustainability Strategy
ē Our Businessē Product Stewardshipē Environment, Healthand Safety

ē
ē
ē
ē
ē
ē
ē
ē

Management

Environment Overview
Emissions

Health Programs

We are committed to maintaining an EHS culture that fosters a healthy and productive work environment. "Health" encompasses medical and physical well-being,
as well as emotional and mental wellness, as described below:

BRIEFCASE-MEDICAL
Medicalhand-holding-heart
Physical

Energyhead-side-medical

Waste

Emotional/Mental

Water

All our manufacturing sites employ occupational-health specialists and most have onsite clinics. Most of our non-manufacturing sites
employ occupational-health specialists as well. We contract doctors at certain locations for job-related medical services for our teammembers. NXP has a global focus on reducing work-related ergonomics injuries and strains, allowing for a more ergo-friendly work
environment. We offer comprehensive health-insurance plans and many of our sites organize annual physicals and preventative healthscreenings, including flu shots.
Several of our global sites offer subsidized gym-membership plans, access to fitness classes and/or onsite fitness facilities.
In addition to physical fitness, we offer programs and guidance on nutrition, weight loss and avoiding unhealthy habits, such as smoking,drinking alcohol and drug use.
Team members are offered resources and assistance programs to source and/or consult with specialists for mental well-being and help in
dealing with major life events. In addition, our Human Resources team members are available to help address other workplace concerns.
NXP also offers a variety of internal and external online resources addressing various life events.

Hazardous Materials

Health and Safetyē Team Members
ē Social Responsibility
ē Governanceē Data and Indicesē Appendicesē Forward-Looking

Statements

Safety Programs

All our manufacturing sites have Health and Safety experts who specialize insupervising protective measures and creating safe and ergonomically friendly
workplaces. All areas of the workplace are incorporated, including areas of production,
offices, labs and other technical areas.
Our proactive safety initiatives include the following:• Employee Emergency Response Teams that perform regular training and drills• Active participation of non-management team members in site-level safetycommittees/councils• Multiple grievance mechanisms available to team members that enable anyone toreport safety concerns directly or anonymously to management• 'Stop-work' authority, which lets any team member intervene when they believe an
activity or a behavior may pose an imminent danger• Unannounced safety walkthroughs, performed by trained managers, to identify
potential issues and recognize positive actions that contribute to our EHS culture• Incident analysis, including near misses, first aid and high-potential events to identify
opportunities for improvement• Prevention measures and safety practices adapted to suit different situations
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NXP Corporate Sustainability Report

Environment, Health and Safety: Health and Safety
ē Introduction
ē Sustainability Strategy
ē Our Businessē Product Stewardshipē Environment, Healthand Safety

ē
ē
ē
ē
ē
ē
ē
ē

Management

Environment Overview
Emissions
Energy
Water

Waste

Hazardous Materials

Health and Safetyē Team Members

Safety Committee/Worker Council

Each manufacturing site engages a Safety Committee/Worker Council, which includes
designated team members who are encouraged to consult and participate in the
EHS Management System process. These committees perform periodic walkthroughs
to evaluate safety and potential areas of risk, in order to continuously improve anddemonstrate our commitment to safety. These committees meet regularly to assist
with hazard identification and risk assessments, investigate incidents, implement EHS
policies, identify opportunities for continuous improvement of the EHS Management
Systems and take an active role in safety awareness and training.

Contractor Health and Safety

NXP is committed to ensuring a safe and healthy workplace for all people, including
our contractor workforce. At our manufacturing sites, all contractors are required todemonstrate completion of necessary safety training before working on site. This
training is reviewed by NXP EHS professionals before badging is approved. In addition,
the EHS and Industrial Facilities organizations work closely together to identify any risks,
discuss PPE, risk mitigation and NXP oversight for all contracting companies that may
conduct hazardous work.

Results

In 2023, there were no incidents that resulted in fines or sanctions in connection with
noncompliance of Health and Safety laws or regulations. There were no fatal workrelated accidents for our workers or contractors. The main types of employee injuries
include slips and falls, machine safety and ergonomics. Each incident is documented
and corrective and/or preventative measures are put in place.

Injury Rate

We maintained a low Total Case Incident Rate (TCIR) of 0.10 in 2023 and remain well
below the semiconductor-industry averages published by the Semiconductor Industry
Association (SIA) and the European Semiconductor Industry Association (ESIA), which,based on the latest data available, range from 0.35 to 1.56. NXP's low injury rate is
attributed to the robust Health and Safety programs and training we have in placeat all our manufacturing sites and our EHS awareness initiatives at many of our officeand R&D sites.
TCIR is a measure used by the US Occupational Safety and Health Administration(OSHA) to monitor industry safety. It is defined as the number of work-related
recordable injuries per hundred full-time workers during a one-year period. Tracking
TCIR allows our EHS Teams to identify patterns across different manufacturing andnon-manufacturing sites.
Injury Rate

ē Social Responsibility

ē Data and Indicesē Appendicesē Forward-Looking

Statements

1.6
Total Case Incident Rate (TCIR)ē Governance

Injury Rate

1.4
1.2
1.0
0.8
0.6
0.4
0.2
0

2014

2015

2016

2017

2018
ESIA

77

NXP Corporate Sustainability Report

2019
SIA

2020
NXP

2021

2022

2023

Environment, Health and Safety: Health and Safety
Occupational Illnesses and Injuries

ē Our Business

Each year, the number of occupational illnesses and injuries and the number ofhours worked vary. We continue to maintain our low number of occupational illnesses
and injuries. We attribute this to our ongoing focus on preventative measures. We
will continue to investigate all work-related injuries to determine root causes andcorrective/preventative actions.

ē Product Stewardship

Severity Rate

ē Sustainability Strategy

ē Environment, Healthand Safety

ē
ē
ē
ē
ē
ē
ē
ē

Management

Environment Overview
Emissions
Energy
Water

Waste

Hazardous Materials

Health and Safetyē Team Members

The severity rate indicates the seriousness of injuries. It is a calculation that describes
the number of lost days compared to the number of incidents experienced. The
severity rate can increase due to a work-related injury of a single incident, since it
may require more time off. In addition, as the absolute number of injuries decreases,
the types of injuries and the severity rate will vary.
Our severity rate remained low in 2023. Our focus on risk reduction and incident
management across all sites is reflected in our ability to remain below the industry
average for severity rate, which historically ranges from five to eight. We continue
to emphasize the importance of providing a safe workplace by not only measuring
our injury rate but also identifying trends, conducting year-on-year analyses andcategorizing injury types to help identify corrective actions.

ē Social Responsibility
ē Governanceē Appendicesē Forward-Looking

Statements

Severity Rate

Number of Employee Occupational Illnesses and Injuries

Severity Rate

60
50
Total Countē Data and Indices

Number of Employee Occupational Illnesses and Injuries

40
30
20
10
0

2015

2016

2017

2018

2019

2020

2021

2022

2023

Days Away From Work x 100 / Working Hours

ē Introduction

12
10
8
6
4
2
0

2015

2016

2017

2018

2019
ESIA

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NXP Corporate Sustainability Report

SIA

2020
NXP

2021

2022

2023

Environment, Health and Safety: Health and Safety
ē Introduction

Injury by Category

2023Injury
Injury OccurrenceOccurrence by2023
by Workplace
WorkplaceEnvironment
Environment

ē Sustainability Strategy

Injury by Category
3%

100%

6%

ē Our Business

80%

12%

24%

60%

ē Environment, Healthand Safety

ē
ē
ē
ē
ē
ē
ē
ē

Management

Environment Overview
Emissions
Energy
Water

Waste

Hazardous Materials

94%
Manufacturing

12%

7%

16%

38%

Non-Manufacturing

36%

6%
8%

23%

22%

3%

18%

34%

31%

2015

Ergonomics

2016

33%

2017

Slips and Falls

24%

2018

26%

2019

Machine Safety

36%

40%

14%

25%

16%

2020

6%
19%

20%

33%

19%

3%

19%
26%

2014

28%

29%

56%
24%

0%

39%

23%

20%

Non-Manufacturing

Manufacturing

40%

12%

4%

7%

ē Product Stewardship

10%

28%

32%
25%

28%

2022

2023

4%

2021

Chemical Incidents

Other

Health and Safetyē Team Members
ē Social Responsibility
ē Governanceē Data and Indicesē Appendicesē Forward-Looking

Statements

79

NXP Corporate Sustainability Report

The Oak Hill site in Austin, Texas, has maintained its OSHA VPP Star
status since 1990. OSHA's Voluntary Protection Programs (VPP) recognize
employers and workers in private industry and federal agencies who
have implemented effective management systems for health and safety
and maintain injury and illness rates below national Bureau of Labor
Statistics averages for their respective industries. In 2023, the Oak Hillsite achieved Super Star Among Stars Recognition Level in OSHA VPP byhaving a TCIR and DART (days away, restricted or transferred) 75% below
industry average.

Team
Members

Highlighting the heart of NXPTeam Members: Overview
ē Introduction
ē Sustainability Strategy
ē Our Business~34,200
Team Members

36%of Team Members Dedicated to R&D

36%

of Team Members are Women

387,179

Online Training Courses Completed

ē Product Stewardshipē Environment, Healthand Safety

Our diverse and talented team members drive the innovation that sets our company
apart and fuels our success in the market.

ē Team Members
ē
ē
ē
ē
ē
ē
ē
ē
ē

Overview

Team-Member Engagement
Thought Leadership

Compensation and Benefits
Development and Growth
Future TalentInnovation

Expertise

Collaboration

Team-Member Retention
Community Outreachē Social Responsibility
ē Governanceē Data and Indicesē Appendicesē Forward-Looking

Statements

81

High performance

Diversity, Equality and Inclusion

NXP Corporate Sustainability Report

Trust and respect

Ownership

GrowthOur Values
Our values are our fundamental beliefs and guiding principles. They speak about how
we operate, how we engage with and develop our team members and how we push
the boundaries of creativity and innovation. Our values rest on a strong foundation oftrust and respect. We hold ourselves accountable to these values by ensuring they arereflected in our talent programs, including talent acquisition, enabling performance,
rewards and recognition, climate, communications, development, assessment andsuccession.
Our Purpose
Our purpose is to bring together bright minds to create breakthrough technologies
that make the connected world better, safer and more secure.

Team Members: Overview
ē Introduction
ē Sustainability Strategy
ē Our Businessē Product Stewardshipē Environment, Healthand Safetyē Team Members
ē
ē
ē
ē
ē
ē
ē
ē
ē

Overview

Team-Member Engagement

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:• Team-member engagement• Thought leadership• Diversity, equality and inclusion• Compensation and benefits• Development and growth

Thought Leadership• Future talentCompensation and Benefits• Team-member retention

Diversity, Equality and Inclusion
Development and Growth
Future TalentTeam-Member Retention
Community Outreachē Social Responsibility
ē Governanceē Data and Indicesē Appendicesē Forward-Looking

Statements82

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, wewant 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.

NXP Corporate Sustainability Report• Community outreach

Team Members: Team-Member Engagement
ē Introduction
ē Sustainability Strategy
ē Our Businessē Product Stewardship90%

Response Rate

88%

Engagement

89%

Great Place to Work

91%
Proud

85%
Valuedē Environment, Healthand Safetyē Team Members
ē
ē
ē
ē
ē
ē
ē
ē
ē

Overview

Team-Member Engagement
Engagement
Thought Leadership

Diversity, Equality and Inclusion
Compensation and Benefits
Development and Growth
Future TalentTeam-Member Retention
Community Outreachē Social Responsibility
ē Governanceē Data and Indicesē Appendicesē Forward-Looking

Statements

83

NXP Corporate Sustainability Report

Engaging and developing our team members is how we create long-term value
for our stakeholders.

Engaging Team Members through Surveys

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 avariety of factors, including engagement, strategy, culture, leadership, innovation,
growth, continuous improvement, collaboration, ownership, work environment, ethics,
sustainability and diversity, equality and inclusion. Surveys are administered by a third
party to ensure confidentiality.
In our 2023 survey, we solicited input from all NXP team members. Ninety percent ofteam members participated in the survey with Ethics, Collaboration, Engagement
and DE&I being the four categories with the highest favorability ratings. The survey
results showed an increase in team-member engagement, with 70% of our teammembers being highly engaged. The results also show NXP’s commitment to shape
the organization’s culture through our values, with 89% believing that NXP is a greatplace to work. Lastly, when it comes to Sustainability, NXP achieved an 89% overallfavorability which speaks to the company's focus on environmental sustainability,
social responsibility and community contributions.
Year-over-year, NXP saw improvements in more than 50% of the survey items.
The third-party administrator of the survey reported that 85% of the survey items
scored more positively than the 75th percentile benchmark, composed of companies
operating in the technology sector.

Looking Ahead
NXP remains committed to actively listening to team-member feedback.
We will continue to provide ways for our team members to share input on theirexperiences and ideas on how we improve engagement.

Team Members: Team-Member Engagement
ē Introduction
ē Sustainability Strategy
ē Our Businessē Product Stewardshipē Environment, Healthand Safetyē Team Members
ē
ē
ē
ē
ē
ē
ē
ē
ē

Overview

Team-Member Engagement
Engagement
Thought Leadership

Diversity, Equality and Inclusion
Compensation and Benefits
Development and Growth
Future TalentTeam-Member Retention
Community Outreachē Social Responsibility
ē Governanceē Data and Indicesē Appendicesē Forward-Looking

Statements

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NXP Corporate Sustainability Report

Engaging Team Members in Events

NXP believes that learning, developing and growing is vital for personal fulfilment
and success – individually and as a company.
In 2023, the company launched its first-ever Growth Week, a testament to ourcommitment to fostering an innovation and growth culture. The global event
promoted high-energy engagement through external keynote speakers, panel
discussions, webinars and in-person workshops. During this event, 17,000 teammembers participated in the 11 global virtual sessions, while 7,700 team members
participated in 170 face-to-face sessions along with approximately 27% site
participation.
Growth Week is just one example of how team members are engaged in site,country-specific and global events throughout the year to promote collaborationand engagement.

External Awards and Recognition

NXP is honored to have received external awards and recognition around the globe
in acknowledgement of our ongoing commitment to the engagement, development
and success of our team members in 2023. Some of the honors received include thefollowing:• In 2023, NXP partnered with a third-party vendor to launch the Great Place to Work
Survey, inviting team members to share insights that speak to the company’s
workplace culture and team-member experience. A great place to work is one
where employees trust their managers and leaders, are proud of their work, likecollaborating with their colleagues, and experience an engaging workplaceenvironment. The survey launched in four countries and culminated with NXP beingcertified as a 2023 Great Place to Work in China, India, Mexico and the United States.
In 2024, NXP plans to continue the momentum and survey team members in 13
additional countries.
• For the fifth year in a row (2019 – 2023), NXP received the Leading Employer Awardin Austria, and was rated the number-two semiconductor company in Austria by
the Leading Employer Institute.
• NXP Taiwan was selected as a 2023 Best Companies to Work for in Asia, honoring
the company’s unwavering dedication to employee satisfaction, well-being anddevelopment, and fostering a positive work environment that promotes growthand excellence.
To view a detailed list of NXP awards by country see our Awards and Recognition
website.

Team Members: Thought Leadershipē Introduction
ē Sustainability Strategy
ē Our Businessē Product Stewardshipē Environment, Healthand Safetyē Team Members
ē
ē
ē
ē
ē
ē
ē
ē
ē

Overview

Team-Member Engagement

Thought Leadership
Leadership

Diversity, Equality and Inclusion

Our talented and innovative team members create breakthrough technologies
that make the connected world better, safer and more secure. We do this through adeliberate investment in building thought leaders throughout the company, especiallyin R&D.

Investing in R&D

NXP targets investment of approximately 16% of revenue in non-GAAP1 R&D every year,
primarily focused on the team members who create our intellectual property, ourproducts and our customer solutions. NXP's breakthrough technologies help create
a connected world that is better, safer and more secure – targeting edge devices forthe automotive, industrial, smart home, communications, infrastructure and mobile
markets.

Developing Thought Leaders

Compensation and Benefits
Development and Growth
Future TalentTeam-Member Retention12%

ē Social Responsibilityof R&D
Team
Members
Promotedē Governanceē Data and Indices71

Technical
Directors
Named

8

ProgramDirectors
Named

5

Program
SeniorDirector
Named





9

2

Fellows
Named

ē Appendicesē Forward-Looking

Statements

1

85

NXP Corporate Sustainability Report

We continue the in-depth analysis of the current R&D workforce while building toward
the strategic R&D workforce of the future based on the updated R&D job structure as
introduced last year. As a follow-up to the Strategic Planning Alignment (SPA) of 2022,
insights on workforce planning were discussed with the R&D Management Team aspart of our longer-term strategy for building future R&D talent.
In 2023, the key focus for developing thought leadership was on creating theframework to build the technical leaders we’ll need for our future and exploring
our site strategy for the longer term.

2023 R&D Team-Member Advancements

Community OutreachOur commitment to developing thought leaders is evidenced by the around 12,000
team members representing 36% of our NXP workforce and 57% of our indirect labor
workforce who are specifically dedicated to R&D. Through broad exposure to jobbased development activities, we were able to advance 12% of these team members in
2023 through internal promotions. In addition, we hired more than 1,493 new R&D teammembers in 2023 and named eight program directors, five program senior directors,
71 technical directors, nine fellows and two senior fellows.

Reconciliations of non-GAAP R&D to GAAP R&D can be found on our Investor Relations website.

Senior
Fellows
Named

To further develop the technical community, we expanded the NXP Academy, offeringa variety of learning opportunities, development programs and specialized training in
the areas of architecture and systems engineering, functional safety, design quality,
crypto and security, artificial intelligence and ideation.

Team Members: Thought Leadershipē Introduction

In 2023, many of our R&D team members participated in an NXP school and otherdevelopment activities. Here are some examples:ē Sustainability Strategy• The NXP Crypto & Security School was created in 2015, with the mission to increase
the awareness and create a common language when we talk about secure
products. This program makes the expertise and know-how of the security expertsof the Competence Center Crypto & Security available to a wider audience in NXP
on topics such as cryptography, security architecture, secure design processes,
secure implementations and security certifications. As of year-end 2023, the Crypto& Security School had conducted 234 trainings (either live online or in-person)and has trained 6,140 NXP team-members.

ē Our Businessē Product Stewardshipē Environment, Healthand Safetyē Team Members
ē
ē
ē
ē
ē
ē
ē
ē
ē

Overview

Team-Member Engagement

Thought Leadership
Leadership

Diversity, Equality and Inclusion
Compensation and Benefits
Development and Growth
Future TalentTeam-Member Retention
Community Outreachē Social Responsibility
ē Governanceē Data and Indicesē Appendicesē Forward-Looking

Statements• In India, we hosted season four of the Young Innovator Design Challenge (YIDC),
a platform for the children of NXP employees, designed to encourage their creativity
and increase their interest in Science, Technology, Engineering and Math (STEM).
This year’s theme was Green More Pollute Less – Protect, Prosper & Preserve throughElectronic Innovation. We had 93 registrations across India, more than 75 idea
submissions, 48 projects prototypes and 16 winners across different categories.
• Strong support for Project and Program Managers (PMs) continued in 2023. For
example, in the fourth quarter of 2023, we launched the seventh group for the R&D
Project Leadership Program. As of year-end 2023, 96 senior PMs had successfully
concluded the program. For 2024, three new groups are planned, and we will launch
additional PM Masterclass sessions with a new provider.
• The NXP process for new product introductions is complex, requiring a large
investment as well as successful, timely and efficient completion. Our PM talent
is vital to our ability to drive these projects to completion and, as a result, NXP isemphasizing further investment in skilled and capable project leaders. For example,
the company organized a summit for our key PM leaders, during which we focusedon harmonization, the PM role model, community building and skill building. To
further stimulate Invention Disclosure submissions, we introduced a new “My First
Patent Award” to recognize individuals who have an initial patent granted. To
continue engaging our Master Inventors (employees who have reached the levelof 25+ patents), we introduced an additional recognition (“Principal Inventors”)
for those who reach 50+ patents.
View a detailed list of NXP R&D development activities at our Building Thought
Leadership website.

86

NXP Corporate Sustainability Report

Looking Ahead
NXP anticipates expanding our schools to include the School for System-on-Chip(SoC) Development, as well as continuing its focus on invention and innovation
as a key competitive advantage.

Team Members: Diversity, Equality and Inclusionē Introduction
ē Sustainability Strategy
ē Our Businessē Product Stewardshipē Environment, Healthand Safetyē Team Members
ē
ē
ē
ē
ē
ē
ē
ē
ē

Overview

Team-Member Engagement
Thought Leadership

Diversity,
Equalityand
and Inclusion
Inclusion
Diversity, Equality
Compensation and Benefits
Development and Growth
Future TalentTeam-Member Retention
Community Outreachē Social Responsibility
ē Governanceē Data and Indicesē Appendicesē Forward-Looking

Statements

87

NXP Corporate Sustainability Report

At NXP, inclusion is key to living our core values, which are built on a foundation of trust
and respect. We recognize the importance of representation, value diversity, equality
and inclusion (DE&I) and respect the unique talents, experiences, backgrounds,
cultures and ideas of our team members. We invite everyone to be their authentic
selves at work, without exception. This is what makes us who we are at NXP. As an
ongoing demonstration of our commitment, we invest in initiatives and resources todrive cultural awareness across the company.
Our global team members are instrumental to our success. Collectively, we push theboundaries of innovation and create new technologies that make the connected world
smarter, safer, and more secure. To continually advance as a company, we recruit,select, develop and advance a highly skilled, collaborative, diverse and inclusive teamwith a winning mindset. Creating breakthrough technologies and spawning new ideas
is enabled through diverse thinking, different experiences and varied backgrounds.
In 2023, we continued making progress on our DE&I journey. We started the year byreflecting on our year-over-year progress toward achieving our 2025 aspirational
representation goals, our efforts to embed inclusion deeper within the organizationand the areas where additional focus is needed.

Team Members: Diversity, Equality and Inclusionē Introduction
ē Sustainability Strategy
ē Our Businessē Product Stewardshipē Environment, Healthand Safetyē Team Members
ē
ē
ē
ē
ē
ē
ē
ē
ē

Overview

Team-Member Engagement
Thought Leadership

Diversity,
Equalityand
and Inclusion
Inclusion
Diversity, Equality
Compensation and Benefits
Development and Growth
Future TalentTeam-Member Retention
Community Outreachē Social Responsibility
ē Governanceē Data and Indicesē Appendicesē Forward-Looking

Statements

88

NXP Corporate Sustainability Report

Key Highlights for the Year
• Implementation of DE&I questions within the Winning Culture Survey – For
the second year in a row, in conjunction with our third-party survey partner, we
included diversity, equality and inclusion questions in our team-member survey.
The all-team-member survey gave better insight into team-member experience,
engagement and sense of belonging. There was an increase in favorability for DE&I
as compared to last years’ results. We look to continue advancing our DE&I efforts toenable an environment where all team members feel a greater sense of belonging.
• Unconscious-bias training for people managers – Last year, we announced our plan
to deliver unconscious-bias training to all people managers within the company. The
NXP Management Team kicked-off the initiative by completing their session at thestart of 2022, with additional sessions held for members of our Employee Resource
Groups (ERGs). In 2023, we delivered the training to our entire Human Resources (HR)organization and launched it enterprise-wide to our people managers. This will bean ongoing initiative to ensure we train people managers who are either new to thecompany or have moved into roles with people-management responsibility.
• Leveraging our Diversity & Inclusion Council – Our Diversity & Inclusion Council
serves as an advocate, resource and governing entity to advance NXP’s global,
strategic diversity, equality and inclusion initiatives. The council includes the
President and CEO, Chief Human Resources Officer, Chief Sustainability Officer,
Executive Vice President of Global Operations and Head of Strategy, Vice President
and Head of DE&I along with business and strategy leaders and ERG members. In
2023, the council met on a quarterly basis to review progress toward our aspirational
representation targets, retention of our team members, development initiatives, pay
equity and to discuss potential additional initiatives.
• Focus on diverse hiring practices – We continued our practice of requiring diverse
candidate slates for select roles. We also increased the award amounts for our
Employee Referral Program, where applicable, when qualified women or underrepresented minorities are hired via an internal referral. We conduct a monthly review
with our leaders and Talent Acquisition team to ensure alignment to this process.
• Continued our exit-interview process – To gain a better understanding of what
contributes to the attrition rate of women globally and minority team members
within the United States, we continued our exit-interview process by inviting teammembers at specific job levels to provide direct feedback to the Head of DE&I prior
to exiting the company. The invitation to participate in an exit interview is extended
to the team member upon termination notification.

• Recognized for our Diversity & Inclusion efforts - In September 2023, NXP wasrecognized as one of the three finalists for the Global Semiconductor Alliance (GSA)
Women’s Leadership Initiative (WLI) Designing the Difference Award. This award
recognizes companies that are making a significant and measurable impact on
advancing the industry through diversity and inclusion.
• Increased our ERG footprint – NXP increased its Employee Resource Group footprint
by establishing two new chapters of the Emerging Professionals/ Young Community inFrance and India, as well as two new chapters of No eXtra Planet in the US and India.

Team Members: Diversity, Equality and Inclusionē Introduction

Approach

NXP’s approach to diversity, equality and inclusion is centered around the following:ē Sustainability Strategy

Leadership commitment and ownershipē Our Businessē Product Stewardship

Leadership
Building and sustaining a qualified, diverse talent pipeline
and equitable processes

ē Environment, Healthand Safety

Building

ē Team Members
ē
ē
ē
ē
ē
ē
ē
ē
ē

Overview

Team-Member Engagement
Thought Leadership

Diversity,
Equalityand
and Inclusion
Inclusion
Diversity, Equality
Development and Growth
Future TalentTeam-Member Retention
Community Outreachē Social Responsibility
ē Governanceē Data and Indicesē Appendicesē Forward-Looking

Statements

89

FosteringCompensation and Benefits

Fostering an inclusive culture and a sense of belonging
to attract and retain the best talent by:•	Welcoming and embracing our team members’ diversity
and fostering respect for everyone’s differences•	Leveraging the diversity of thought and life experiences•	Cultivating a collaborative work environment where teammembers feel valued and are comfortable being theirtrue selves

NXP Corporate Sustainability Report

We also support and adhere to all diversity-related legal and compliancerequirements, which vary by country and region.

PolicyThe NXP Diversity, Equality and Inclusion Policy outlines our key belief that every teammember should be treated with respect. In alignment with the NXP Code of Conduct,
we do not tolerate discrimination based on race, national origin, social origin, color,
gender, religion, age, pregnancy, sexual orientation, physical or mental disability, or
political affiliation, among other things. Nor do we tolerate physical, verbal, sexual or
psychological harassment, bullying, abuse or threats of any kind.
We are committed to providing an inclusive working environment for our teammembers and we recruit, hire and promote based solely on suitability for the job andother objective and non-discriminatory criteria. By working to foster a diverse, equal
and inclusive environment where everyone feels welcomed, valued and accepted
as they are, we increase collaboration, advance innovation and enable our teammembers to unlock their full potential.

Team Members: Diversity, Equality and Inclusionē Introduction
ē Sustainability Strategy
ē Our Businessē Product Stewardship

Representation Goals

To support our DE&I approach and demonstrate our commitment to transparency
and accountability, we have established aspirational 2025 DE&I goals to improve
our gender representation globally and, in the United States, our minority race andethnicity representation.
We continue to focus on hiring, development and retention across all global sites tomeet our 2025 representation goals among our team-member population.

ē Environment, Health2025 DE&I Goals

and Safety40%

ē Team Members
ē
ē
ē
ē
ē
ē
ē
ē
ē

Overview

Women in Overall
Global Workforce

Team-Member Engagement
Thought Leadership

30%

Women in Global IDL
Workforce

20%

Women in
Executive Positions

25%

50%

20%

52%

Women in R&D Positions

Minority Representationin the United States

Diversity,
Equalityand
and Inclusion
Inclusion
Diversity, Equality
Compensation and Benefits

2023 DE&I Performance

Development and Growth
Future TalentTeam-Member Retention

36%

Community Outreach

Women in Overall Global
Workforceē Social Responsibility

25%

Women in Global IDL
Workforce

16%

Women in Executive
Positions2

ē Governanceē Data and Indicesē Appendicesē Forward-Looking

Statements

2
3

90

In 2023, our overall team-member population was 32,738 (employee headcount).
Of this population, we saw an increase in the representation of women in R&D
positions, but remained flat or slightly under the prior-year results in other categories.
We continue to focus on hiring, developing and retaining team members acrossall global sites to support our 2025 representation goals. While we present gender
representation data by men and women, we acknowledge this is not
fully encompassing of all gender identities.

NXP Corporate Sustainability Report

Executive positions are defined as individuals at the level of Vice President and above.
Minority representation includes employees who self-identify as Asian, Hispanic or Latino, Black or African
American, American Indian or Alaska Native, Pacific Islander or two or more races. We also include withinminority representation employees who have not self-identified an ethnicity.

Women in R&D Positions

Minority Representationin the US3

Team Members: Diversity, Equality and Inclusionē Introduction
ē Sustainability Strategy

Workforce by Gender

Workforce by Gender100%ē Our Businessē Product Stewardshipē Environment, Healthand Safetyē Team Members
ē
ē
ē
ē
ē
ē
ē
ē
ē

37%

36%

37%

37%

36%

64%

63%

64%

63%

63%

64%

2018

2019

2020

2021

2022

2023

50%

25%

Overview

Team-Member Engagement
Thought Leadership

0%

Diversity,
Equalityand
and Inclusion
Inclusion
Diversity, Equality

Men

Compensation and Benefits

Women

Development and Growth
Future TalentTeam-Member Retention
Community Outreachē Social Responsibility
ē Governanceē Data and Indicesē Appendicesē Forward-Looking

Statements

91

36%

75%

NXP Corporate Sustainability Report

Gender Representation

Women represent 36% of our global workforce and we continue to strive for noticeable
improvements in hiring women across all global sites. Additionally, we are committed
to increasing, developing and promoting more women into technical and leadership
positions within our organizations.
We monitor gender statistics globally, across all roles, and look for continuous
improvements, which include an evaluation of the practices at the country level. Eachcountry's leadership team ensures we are making improvements, where needed.
Our 2025 aspirational representation goals highlight our commitment to increasing
the representation of women and other underrepresented populations at NXP. With
regional hiring targets, diverse interview panels and inclusive leadership trainings andpractices, we increase our ability to advance representation and promote inclusion.

Team Members: Diversity, Equality and Inclusionē Introduction
ē Sustainability Strategy

Race and Ethnicity Representation

In the US, we monitor race and ethnicity representation to ensure we are attracting,developing and retaining diverse team members.

ē Product StewardshipOver the course of 2023, we saw our Asian American population increase by two
percentage points compared to 2022. We saw a one-percentage-point decline in ourBlack/African American team-member population, as well as a one-percentage-point
reduction in our Hispanic/Latino team members from the prior year.

ē Environment, HealthA breakdown of NXP’s US population, as of December 31, 2023:

ē Our Businessand Safetyē Team Members
ē
ē
ē
ē
ē
ē
ē
ē
ē

US Race and Ethnicity

2023
48%

Asian (Not Hispanic / Latino)

24%

Hispanic / Latino

15%

Compensation and Benefits

Black or African American (Not Hispanic / Latino)

5%

Future Talent

Native American or Alaska Native (Not Hispanic / Latino)

0.6%

Native Hawaiian or Other Pacific Islander (Not Hispanic / Latino)

0.2%

Team-Member Engagement
Thought Leadership

Diversity,
Equalityand
and Inclusion
Inclusion
Diversity, Equality
Development and GrowthTeam-Member Retention
Community Outreachē Social Responsibility

Two or More Races (Not Hispanic / Latino)1%

Undeclared

6%

ē Governanceē Data and Indicesē Appendicesē Forward-Looking

Statements

92

NXP Corporate Sustainability Report

Among our inclusion efforts are the following:• Sharing our global recognition calendar

White (Not Hispanic / Latino)

Overview

Throughout the year, team members shared the positive impact that being more
mindful about their interactions with others, perspectives, and behaviors has had.
Anticipated outcomes include better engagement, increased collaboration, higher
performance and advanced innovation. Inclusion creates an environment in which
all team members feel welcomed, valued, accepted, respected and included, andenables everyone to perform at their best.

Engaging our Teams through Inclusion Insights

Culture change happens over time and it requires intent and observed behavioral
changes. As NXP looks to foster a more inclusive culture within the company on a global
scale, inclusion must be a deliberate, demonstrated part of our day-to-day activities.
We continued our practice of "Inclusion Insights" to embed inclusive practices
throughout our company every day. An Inclusion Insight is a one-to-five-minuteexchange about a specific inclusion topic at the beginning of formal team meetings.
Inclusion Insights are intended to serve as regular reminders about the importanceof being inclusive at work, at home and in all aspects of our lives.

• Spotlighting the various countries in which we operate during our global recognitionof Diversity Week, where we shared information about company history, businessaccomplishments and opportunities for community engagement• Promoting cultural enrichment events and activities, along with some cultural
fun facts• Spotlighting the contributions of men, positive male role models and focusing
on men’s health and well-being in connection with "Movember"• Celebration of International Women’s Day across the globe

Fostering Team-Member Engagement via ERGs

An instrumental part of our approach to DE&I are our team-member voices, their
engagement in driving inclusion and their efforts to support our strategic initiatives
for diversity, equality and inclusion.
NXP’s Employee Resource Groups (ERGs) are instrumental in enabling our culture andinclusive work environment, as we work to ensure diversity throughout our company
and bring unique perspectives and skills to help those in our communities. In 2023, we:• Increased our number of ERG chapters from 23 to 27 by establishing two newchapters of the Emerging Professionals / Young Community groups in France
and India, as well as two new chapters of No eXtra Planet in the US and India.
• Grew ERG global representation. NXP now has nine primary ERGs, with
27 chapters represented in Asia, Europe, Mexico and the United States.

Team Members: Diversity, Equality and Inclusionē Introduction

NXP Primary ERGs

ē Sustainability Strategy
ē Our Businessē Product Stewardshipē Environment, Healthand Safetyē Team Members
ē
ē
ē
ē
ē
ē
ē
ē
ē

Overview

Team-Member Engagement
Thought Leadership

Diversity,
Equalityand
and Inclusion
Inclusion
Diversity, Equality
Compensation and Benefits
Development and Growth
Future TalentTeam-Member Retention
Community Outreachē Social Responsibility
ē Governanceē Data and Indicesē Appendicesē Forward-Looking

Statements

93

NXP Corporate Sustainability Report

Asian Cultural
Team

Black
Achievement
Leadership Team

Emerging
Professionals /Young Community

EQUAL

Hispanic
Education
Awareness Team

Membership and participation in ERGs is open to all NXP team members and global
engagement is encouraged. Each ERG has defined mission/vision statements andgoals, as well as executive oversight and sponsorship.
To track the progress of our growing ERGs, we measure membership, team-member
engagement and programming for each group. To measure employee experienceswith the ERGs, team members provide direct feedback to ERGs through surveys sent
to participants. In 2023, the ERGs collectively hosted more than 250 events, including
professional-development workshops, networking sessions and cultural-awarenessactivities.
In addition to planning events and organizing efforts within the countries and regions
where they operate, NXP ERGs identify ways to partner across geographic sites andteams. Examples of these collaborative efforts include the following:• The company’s annual observation of International Women’s Day (IWD), whichcelebrates the social, economic, cultural and political achievements of women.
In 2023, thousands of NXP team members around the world participated in morethan 55 virtual and onsite IWD events.
• NXP’s raising of the Pride flag across our global sites.
• Additional annual observances celebrated by our ERGs include Black History Month,
Pride Month, Hispanic Heritage Month, Global Diversity Awareness Month, Asian
Heritage Month, and Diversity Week.

Interconnection

No eXtra Planet

United Veterans

Women in NXPWhen possible, our ERGs also partner with external organizations committed toadvancing STEM education, community wellness and sustainable environmental
practices. For example, in 2023, our ERGs raised and donated funds and led
20 volunteer opportunities.
This year, our ERGs partnered with more than 20 nonprofit organizations, including
the following:• El Buen Samaritano, Texas• For Our City Day Chandler, Arizona• Huston Tillotson University’s Austin Pre-Freshman Engineering Program (AusPREP),
Texas• National Society of Black Engineers Fresh Start, Texas• one•n•ten, Arizona• Si Se Puede Foundation, Arizona• The National Expert Organization on Girls in STEM (VHTO), Netherlands• The Trail Conservancy, Texas• Valley of the Sun United Way, Arizona• Elles Bougent, France

NXP engages regularly with our ERG leaders, meeting several times a year to shareregular updates about our focus on and progress in DE&I, while listening for areas ofopportunity to consider. In 2023, for example, based on input from ERG leaders, we
invited select ERG leaders to attend an in-depth workshop on executive coachingand development. The workshop, led by an external facilitator, focused on executive
presence, engagement, effectiveness and insights and included role-playing andcoaching sessions with opportunities for direct and focused feedback.

Team Members: Diversity, Equality and Inclusionē Introduction
ē Sustainability Strategy
ē Our Businessē Product Stewardshipē Environment, Healthand Safetyē Team Members
ē
ē
ē
ē
ē
ē
ē
ē
ē

Overview

Team-Member Engagement
Thought Leadership

Diversity,
Equalityand
and Inclusion
Inclusion
Diversity, Equality
Compensation and Benefits
Development and Growth
Future TalentTeam-Member Retention
Community Outreachē Social Responsibility
ē Governanceē Data and Indicesē Appendicesē Forward-Looking

Statements

94

NXP Corporate Sustainability Report

DE&I Commitment

NXP’s commitment to DE&I is also reflected in our collaboration with universities.
We are committed to increasing representation of women and other underrepresented groups in the communication material we use with universities and at
career fairs. To promote recruiting from diverse talent pipelines, our ERGs collaborate
with our internal Talent Acquisition Team.
Below are a few examples of 2023 activities to support NXP’s aspiration to improve
gender representation:• The Taipei office held a Woman in Tech Day, bringing together nearly 40 womenstudents from various schools with backgrounds in Electrical Engineering andComputer Science. They gathered to discuss their careers, challenges and any
uncertainties they might encounter along the way.
• NXP Mexico hosted workshops for Beautiful Patterns, a program by Insituto
Tecnológico y de Estudios Superiores de Monterrey (ITESM, or Monterrey Instituteof Technology and Higher Education in English), which is an interdisciplinary effort
that seeks high-impact solutions to the complex sociotechnical challenges
of women's STEM education.
• The Black Achievement and Leadership Team (BALT) ERG in the United States
continued its partnership with the National Society of Black Engineers (NSBE)
chapters to host Leveling Up Workshops, an NXP-developed, career exploration
workshop that provides university students with guidance, support and early
access to tools, tips and NXP resources.

Team Members: Diversity, Equality and Inclusionē Introduction
ē Sustainability Strategy
ē Our Businessē Product Stewardshipē Environment, Healthand Safetyē Team Members
ē
ē
ē
ē
ē
ē
ē
ē
ē

Overview

Team-Member Engagement
Thought Leadership

Diversity,
Equalityand
and Inclusion
Inclusion
Diversity, Equality
Compensation and Benefits
Development and Growth
Future TalentTeam-Member Retention
Community Outreachē Social Responsibility
ē Governanceē Data and Indicesē Appendicesē Forward-Looking

Statements

Developing our Diverse Workforce

Our Leadership Development Program (LDP), describedin the Development and Growth chapter, targets leaders
at the director level and above. Within the cohort of2023 program participants, we've achieved our target of
having women and other underrepresented minorities
account for 40% of the participants.
Through our ERGs, NXP regularly facilitates training on
DE&I topics. As an example, our BALT and EQUAL ERGs
collaborated on a presentation to discuss fostering
cultural diversity and inclusion in the workplace. These
ERG-led sessions give our global team members theopportunity to engage in open discussions and createawareness of inclusive behaviors.
Our ERG-hosted events aim to promote careerdevelopment, enhancing business knowledge andbuilding leadership skills. For example:• BALT United States conversation with Jens Hinrichsen,
NXP Executive Vice President and General Manager
Advanced Analog, who shared his career journey,development pathway and leadership wisdom.

• Hispanic Education Awareness Team (HEAT) UnitedStates Lunch and Learn with Jaime Pla, Senior Vice
President and General Manager Advanced Interfaces& Sensors Product Line, to discuss key elements oftaking action to support your career development.
• Women in NXP (WiN) Americas executive coffeechat with Chief Human Resources Officer Chris
Jensen, where he provided insights on career advice,collaboration and traits of success.
• WiN India Speed-O-Mentoring session with leaders
including Sourav Roy (NXP Fellow) and Ashish Bhattad(Senior Director Secure Connected Edge), which
covered leadership, technical-skills growth andmicroaggressions at work.
• Young Community Germany Career Insights Session
with Torsten Spinty, Senior Vice President Advanced
Analog Finance, to give insights on how young
professionals can get a jumpstart on their careerdevelopment.
• Young Community Netherlands and Germany hosted
the first round of the new “One Day with an Executive”
initiative, an opportunity for young professionals tospend a day with NXP leaders. In this first round, teammembers were matched with one of six participating
executives and spent a day shadowing the leaders as
they attended meetings, customer calls and worked
through their daily agendas. Participant feedback
indicated the initiative provided valuable experiences
and insights into new functions, executive leadership
responsibilities and qualities and provided new
perspectives.
In addition to these efforts, our ERGs initiate mentorshipplatforms within NXP. For example, our Women in NXP
India chapter launched Building Pathways, an internal
networking platform for team members to shareinspiring stories and provide guidance on career andwell-being.
NXP also engages in professional development
conferences that enable the continued growth ofour diverse workforce. In 2023, NXP team members
participated in the Texas Conference for Women, theCalifornia Conference for Women, Black Engineer of theYear (BEYA) Conference and the Global Semiconductor
Alliance’s Women’s Leadership Initiative.
Looking Ahead
NXP will continue to enhance our diversity, equality
and inclusion efforts, define processes and embedstrategies that will ultimately help us sustain a diverse
workforce and an inclusive environment. We will:• Build upon the inclusive behaviors we’ve establishedwithin the company by continuing our practice ofstarting formal meetings with an Inclusion Insightand expanding our Inclusion Insights library• Make progress toward achieving our 2025
representation targets

95

NXP Corporate Sustainability ReportTeam Members: Compensation and Benefits
ē Introduction
ē Sustainability Strategy
ē Our Businessē Product Stewardshipē Environment, Healthand Safetyē Team Members
ē
ē
ē
ē
ē
ē
ē
ē
ē

Overview

Team-Member Engagement
Thought Leadership

Diversity, Equality and Inclusion

Compensation and Benefits
Benefits
Development and Growth
Future TalentTeam-Member Retention
Community Outreachē Social Responsibility
ē Governanceē Data and Indicesē Appendicesē Forward-Looking

Statements

96

NXP Corporate Sustainability Report

NXP’s competitive compensation and benefits programs are designed to attract thebest talent as well as drive and reward the best performance across all areas of ourdiverse workforce.

Compensation

NXP provides team members with total rewards packages consisting of base salaryand short-term incentives for all team members as well as equity-based long-term
incentives for team members where long-term retention is appropriate.
Rewarding performance is a critical element of our overall program. NXP is committed
to managing all reward-based compensation programs, including merit increases,
Annual Incentive Program (AIP) payouts, Sales Incentive Program (SIP) payments andlong-term incentive awards, to deliver on our pay-for-performance philosophy.
Since 2022, we have linked a portion of our executive and team-member
compensation to our ESG goals. For more information, see our 2024 Proxy Statement
and the Goals section of the Sustainability Strategy chapter of this Report.
NXP has policies and procedures in place to promote pay equity. We perform
pay reviews twice a year, alongside NXP's rewards processes, to ensure we aredelivering pay decisions with an appropriate focus on fairness. We developed
this proactive process to evaluate each reward-based compensation program
in real time, to provide leaders with feedback to create more visibility into fairand equitable compensation while decisions are being made. We also analyze
potential compensation recommendations or changes within functional areas anddepartments in order make appropriate adjustments and promote pay equity.
Summarized results of this analysis are presented to our CEO and Chief Human
Resources Officer, reflecting our commitment to evaluate compensation-related
decisions based on a variety of factors, including, where applicable, gender, raceand ethnicity.
We believe that pay decisions should be made based on three factors: externalconsiderations (i.e., market conditions), employee performance/contributions
and internal equity. NXP utilizes third-party data to formulate compensation andbenefits programs that are fair, equitable and competitive. We then empower
leaders to recognize both individual and team accomplishments through a varietyof compensation programs. Each year, we conduct a formal assessment of theindividual's specific achievements and the demonstrated behaviors – consistent with
our values – to deliver those achievements through our Enabling Performance process.

Benefits

wellbeing@NXP

In 2023, NXP introduced Wellbeing@NXP, aimed at helping our team members
maintain their physical health, mental health and financial well-being through ourvarious programs offered at the local level. Through an app-based portal, we support
challenges throughout the year and provide daily tips, journeys and online programsfor employees to maintain their well-being. We encourage team members to createconnections with others who are working on similar well-being initiatives. They also
have the ability to connect with specific programs within the overall benefits offerings.
NXP offers a wide range of global benefits that may include an employee stockpurchase plan (where eligible team members can purchase NXP shares throughpayroll deductions at 85% of fair market value), life insurance, business-travel accident
insurance, personal accident insurance, paid maternity and paternity leave, personal
time off, tuition reimbursement, certain local allowances and other employeeassistance programs.
We also offer the following:• A global Flexible Work Arrangement program, which allows eligible team members
the ability to work a combination of onsite and remotely. Although our way of working
focuses on meaningful face-to-face interactions, we have incorporated flexibility
into our work arrangements in a way that allows us to maintain the focus on strong
and effective teamwork, collaboration and community.
• Annual recharge days that allow employees globally to either enjoy a local holiday
or enjoy a meeting-free day to catch up on their goals. In 2023, seven Recharge Days
were recognized throughout the company.
• In some countries, we support part-time work schedules, helping to promote overall
well-being and greater work-life integration for our team members.

Team Members: Compensation and Benefits
ē Introduction

NXP’s benefits programs vary by country and region. Below is an overview of someof the benefits we offer in each region:

ē Sustainability Strategy
ē Our Businessē Product Stewardshipē Environment, Healthand Safetyē Team Members
ē
ē
ē
ē
ē
ē
ē
ē
ē

Overview

Team-Member Engagement
Thought Leadership

Diversity, Equality and Inclusion

Compensation and Benefits
Benefits
Development and Growth
Future TalentTeam-Member Retention
Community Outreach

Americas Benefits Overview

APAC Benefits Overview

EMEA Benefits Overview

NXP supports team members in Brazil, Canada, Mexicoand the United States by offering a benefits programthat includes medical, dental and vision insurance,in addition to any statutory benefits. We offer
competitive matching contributions for retirement,
as well as car allowances and lease programs for our
Sales team members. In the United States, we offer
consistent benefits packages for salary and hourly
team members who work at least 20 hours per week.
We have medical and mental-health benefits forteam members who are transgender, and we alsooffer up to five visits of back-up care (for children or
the elderly), tutoring for children, onsite gyms or gym
allowance, onsite health checks and flu shots andtime off for community service and voting.

NXP supports team members in APAC countries with
benefit programs tailored to the specific country.
This can include annual health and wellness checks,
medical-insurance coverage, hospital coverageand certain allowances, in addition to any statutory
benefits. Retirement benefits are available at eachsite, with a mixture of pension plans and definedcontribution plans. At several NXP manufacturing
sites, we supply allowances for the purchase of rice,
as well as cafeterias serving food, for the convenienceof our team members. Certain sites also offer onsite
health centers and designated areas for sporting
activities and religious practices. NXP supports
cultural events with gifts and time off for Diwali, theDragon Boat Festival and Chinese New Year.

NXP supports full- and part-time team memberswith life insurance, personal-accident insurance
and retirement (in line with local market practice),in addition to statutory benefits. We have a varietyof car-allowance and lease programs in the
countries where our customers are present. In several
countries, including France, the United Kingdom andsites in Eastern Europe, NXP provides supplemental
medical, dental and vision coverage, in addition
to the in-country social programs. NXP pays for all
team-member benefits, while team members pay
the additional fees to cover their families. In somecountries, we provide allowances that assist teammembers with commuting, meals and other workrelated costs. We also support health- and sportsrelated activities and cultural events for our teammembers.

ē Social Responsibility
ē Governanceē Data and Indicesē Appendicesē Forward-Looking

Statements

Looking Ahead• We will continue to have our total rewards programs
focus on attracting, motivating, retaining andrewarding our talented team members.
• We will continue to examine our compensation
programs and pay decisions through the lensof pay equity.
• We will continuously explore ways to improve
our processes and systems to ensure the best
investment in our people.
• We will integrate programs with a focus on teammember health and well-being.

97

NXP Corporate Sustainability ReportTeam Members: Development and Growthē Introduction
ē Sustainability Strategy
ē Our Businessē Product Stewardshipē Environment, Healthand Safety

NXP has a long history of empowering our team members to develop their skill sets
and expand their capabilities.
We have a strong commitment to continuous learning and we understand thatdevelopment happens when multiple learning approaches come together.
We believe that, by utilizing the 70/20/10 model, team members can achieve newlevels through experience, collaboration and education.

Our Approach: The 70/20/10 Model
Learning Through On-the-Job Experience (70%)
On-the-job learning begins for team members on day one, with orientation, andcontinues, throughout their time at NXP, with regular and ongoing programs for
growth and development, offered at both the local and global level. We work tocreate developmental opportunities for our team members through challenging
stretch assignments, project roles, cross-functional interactions, cross-geography
engagements and both temporary and longer-term job rotations – all of which areused to stimulate core skills, develop leadership competency and fuel the career
growth of our team members.

ē Team Members
ē
ē
ē
ē
ē
ē
ē
ē
ē

Overview

Team-Member Engagement
Thought Leadership

Diversity, Equality and Inclusion
Compensation and Benefits

Development and Growth
GrowthFuture TalentTeam-Member Retention
Community Outreachē Social Responsibility
ē Governanceē Data and Indicesē Appendicesē Forward-Looking

Statements

98

NXP Corporate Sustainability Report

Learning Through Others (20%)
We believe some of the best career learning is gained by working with andobserving others, mentoring and continuous feedback. Learning new skill sets fromthe industry’s best is both a foundational learning strategy and an opportunity weuse at NXP to develop talent. There are many programs our team members canuse to build relationships with peers and mentors and to enhance team-member
development. We also have a deliberate and continuous feedback process formaking sure that learning and improvement are daily habits.
Learning Through Education (10%)
Coursework is a vital tool, blending internally designed and externally sourced
courses and learning resources to provide our team members with learning
opportunities, in support of key business processes, requirements and initiatives.
We also provide all team members with access to a complete library of on-demand
resources for skills development and micro learning. We support continuing
educational endeavors by providing tuition-assistance programs in various
countries and regions – including China, India, the United Kingdom and the UnitedStates – where we cover a portion of the costs for team members to pursue degrees
and/or certifications in approved fields of study.

Team Members: Development and Growthē Introduction
ē Sustainability Strategy

Global Online Learning4

In 2023, NXP saw an increase of 168% in global online training compared to 2022,
and introduced new face-to-face training opportunities. See the chart below for
details on our online learning.

ē Our Businessē Product Stewardshipē Environment, Health

Global Online Learning

Team-Member Engagement

2022

20235

Number

8,852

9,497

387,179

Online Training Hours

Hours

89,591

168,229451,356

Average Online Training Hours

Hours

3.0

5.1

13.7

Training Courses Completed

ē Team Members
Overview

2021

Overview

and Safety

ē
ē
ē
ē
ē
ē
ē
ē
ē

Unit

Average Online Training Hours by Role

Thought Leadership

Indirect Labor (IDL)

Hours

7.0

8.0

17.6

Compensation and Benefits

Direct Labor (DL)

Hours

0.2

0.6

4.6

Women

Hours

2.2

4.1

9.5

Men

Hours

3.5

5.7

14.5

Diversity, Equality and Inclusion
Development and Growth
GrowthFuture Talent

Average Online Training Hours by Gender

Team-Member Retention
Community Outreachē Social Responsibility
ē Governanceē Data and Indicesē Appendicesē Forward-Looking

Statements

4
5

99

NXP Corporate Sustainability Report

Online training metrics include mandatory compliance training and team-member-elected training.
Due to changes in our internal training system, 2023 numbers are calculated slightly differently than for earlier years.

Team Members: Development and Growthē Introduction
ē Sustainability Strategy
ē Our Businessē Product Stewardshipē Environment, Healthand Safetyē Team Members
ē
ē
ē
ē
ē
ē
ē
ē
ē

Overview

Team-Member Engagement
Thought Leadership

Diversity, Equality and Inclusion
Compensation and Benefits

Development and Growth
GrowthFuture TalentTeam-Member Retention
Community Outreachē Social Responsibility
ē Governanceē Data and Indicesē Appendicesē Forward-Looking

Statements

100

NXP Corporate Sustainability Report

Our Learning and Development Programs

NXP has a wide variety of learning and development programs for our team members
across the globe, including new offerings introduced in 2023 and others
to come in 2024.
Examples of our current programs include the following:• Executive Presence – Led by an external executive coach, this virtual program
consists of cohorts of 10 team members who participate in one three-hour workshop
lecture, two three-hour role-play sessions, where participants present to a mockexecutive audience and receive peer and facilitator feedback (five participants persession), and a 1:1 coaching session. This program is designed for team members
who want to improve presentation skills or who often present to executives, andemphasizes the importance of feedback, of tailoring presentations to the audienceand overall effectiveness and professionalism.
• NXP Engage! – A voluntary program that allows employees to engage with and learn
from people across functions. This program provides opportunities to connect andbuild a broader (global) network at NXP. It supports the 20% of development that
happens by “learning through others.”• Women’s Leadership Program – Designed for mid-career women team members,
this six-month virtual program aims to develop a pipeline for key women talent andadd diversity to our potential executive leaders. In the program, piloted in July 2023
with 30 participants, team members are led by an external guide through curriculum,
discussions, coaching and mentoring sessions and group meet-ups. Select seniorleaders at NXP also present their career journey and provide key insights into theirleadership journey. Topics throughout the program include sharing our leadershipstories, defining authentic leadership, influencing up, down, and across and more.

We also offer a variety of sessions to benefit key audiences. For example:• Business and Function-Specific Training for specific audiences on a wide variety
of topics, including project management, business intelligence and technical skills.
For example, our Assembly and Test and Front-End Operations team members
participated in more than 2,000 courses/sessions, totaling 47,000 hours of training
in 2023.
• Team-Effectiveness Workshops invite team members to understand more about
themselves and others using psychometric tools. In addition to learning to work
better with colleagues, they learn how to have more open, positive conversations,use their strengths with confidence, improve their development areas andunderstand the value they bring to projects. In 2023, we delivered 106 Insights
Discovery sessions to team members across the globe.
• In 2023, NXP launched the global Workday Learning Management System, whichenables full distribution of content creation and learning assignments from thecompany’s employee system of record and allows the company to get the rightlearning to the right people at the right time.
Our customers are key to what we do. We value external collaboration, not only as
a way to share our expertise with our customers and design partners but also as adevelopment opportunity for our own team members. To that end, we regularly hostand engage in external training, conferences and other industry events that help
us stay connected with the growth of the industry and ensure our talent maintains
cutting-edge and competitive knowledge and skills.

Looking Ahead• NXP will offer a refresh training of NXP Manager Intensive to alumni, providingthem with an opportunity to reflect and build upon their learnings and key
takeaways from the program.
• Leveraging the results from our annual Winning Culture Survey, we will provide
all team members with the opportunity to learn more about our NXP values, aswell as offer resources and tools for personal and professional developmentaligned to those values.

Team Members: Future Talentē Sustainability Strategy
ē Our Businessē Product Stewardshipē Environment, Healthand Safetyē Team Members
ē
ē
ē
ē
ē
ē
ē
ē
ē

Overview

Team-Member Engagement
Thought Leadership

Diversity, Equality and Inclusion
Compensation and Benefits
Development and Growth

Future Talent
TalentTeam-Member Retention
Community Outreachē Social Responsibility
ē Governanceē Data and Indicesē Appendicesē Forward-Looking

Statements

101

NXP Corporate Sustainability Report

NXP’s strong commitment to our new-in-career and internship programs is a key
contributor to developing the next generation of talent, including engineers, in our
industry and our company. In addition to recruiting interns, working students andnew college graduates for engineering roles, the Company also hires for generaland administrative positions in Finance, Human Resources, Sales and other areas.

IDL New College Graduate Hires

IDL New College Graduate Hires

New College Graduates

Our internship programs build a highly capable and energetic pipeline of new college
graduates. In 2023, we were pleased to welcome more than 910 IDL new college
graduates, a slight decrease compared to the 1,070 new college graduates we hired
in 2022. These hires represent 44% of our overall IDL hiring activity, in which 36% of newcollege graduate hires were women and 76% were underrepresented minorities in the US.

40%

1,250

Interns

Our internship programs focus on the technical advancement and skills development
students need as they prepare to enter the professional workforce. In 2023, we
continued to welcome university students to NXP. We granted more than 1,380
internships to university students and converted 48% of our interns into NXP teammembers as new college graduates.

48%

1,500

Number of Peopleē Introduction

1,000
750

30%

tCO2e
0

40%

30%

30%

19%
1,070

500
250

39%

598
311

2018

2019

460

2020

New College Graduate Hires

50%

20%
910

10%

644

2021

2022

Intern Conversion Rate

2023

0%

Team Members: Future Talentē Introduction
ē Sustainability Strategy
ē Our Businessē Product Stewardshipē Environment, Healthand Safetyē Team Members
ē
ē
ē
ē
ē
ē
ē
ē
ē

Overview

Team-Member Engagement
Thought Leadership

Diversity, Equality and Inclusion
Compensation and Benefits
Development and Growth

Future Talent
TalentTeam-Member Retention
Community Outreachē Social Responsibility
ē Governanceē Data and Indicesē Appendicesē Forward-Looking

Statements

102

NXP Corporate Sustainability Report

University Partnerships and Engagement

New-in-Career Development Program

To drive deeper awareness and engagement with our university partnerships, NXP
maintains a University Relations Council, which has the goal of driving a coherent andaligned approach toward university partnerships by linking recruitment, global sales
and marketing and R&D programs. In 2023, we strengthened this global and local
collaboration and successfully implemented many initiatives and activities.

The aim of the New-in-Career Development Program is to provide our team members
who are new in their career with the necessary knowledge and tools to understandmore about NXP, our strategy, our culture and our values. In addition, team members
receive guidance on developing the professional skills they will need to successfully
drive their development and reach their career goals.

In 2023, we took a diversified approach to university funding and support. This allowed
us to support advanced research programs and sponsorships as well as encourage
innovation that helps to make a difference. For example, the NXP Foundation gave
major donations to the Graz University of Technology (Austria), the Eindhoven
University of Technology (Netherlands), Arizona State University (Arizona), Maricopa
Community College (Arizona), Prairie View Agricultural and Mechanical University(Texas) and Austin Community College (Texas).

As part of this program, new-in-career hires also receive an onboarding gift to makethem feel welcome and a part of the NXP team.

Through our partnerships with universities across the world, we fund and support
advanced research programs and projects that demonstrate our commitment toinvest in people as well as technology. Quite often, these partnerships translate into
new and exciting solutions for our customers and markets.  

Find more information about NXP’s university partnerships and engagements at our
Future Talent website.

University Ambassador Program

In partnership with our 16 in-country University Relations Councils across the globe,
and to help foster connections with students who go beyond the recruiting team,our University Ambassador Program invites all team members to raise awarenessat universities and encourages young professionals to join NXP.
To help foster connections with students that go beyond the recruiting team, ourUniversity Ambassador Program invites all team members to raise awareness atuniversities and encourages young professionals to join NXP.
As University Ambassadors, team members connect with potential student hires in avariety of ways, such as speaking at job fairs, hosting guest lectures at universities andengaging with students who are interested in getting hands-on experience throughour internship program. In addition, students can reach out directly to our University
Ambassadors, through campaigns organized by NXP, to ask about their experiences
as an NXP team member. There is a direct benefit to those participating, with students
and ambassadors often finding themselves enriched.

We believe early success in a career significantly drives the future success of ourcompany. The first months of a new job can seem daunting. With this in mind, thecompany has a New-in-Career Development Program focused on supporting
emerging professionals in their transition to the working world.

Country- and Region-Specific Programs for Future Talent

NXP empowers our leaders and teams to create and launch programs that target theindividual needs of future talent in a specific country or region. Learn about programs
we’ve launched in specific countries at our Future Talent website.

Team Members: Team-Member Retention
ē Introduction

NXP aims to retain team members and minimize turnover. The graph below shows
our turnover rate from the past six years.

ē Sustainability Strategy

Global Voluntary Turnover

Global Voluntary Turnover
5,000ē Product Stewardship4,000

ē Environment, Healthand Safetyē Team Members
ē
ē
ē
ē
ē
ē
ē
ē
ē

Overview

Team-Member Engagement
Thought Leadership

Diversity, Equality and Inclusion
Compensation and Benefits
Development and Growth
Future TalentTeam-Member Retention
Retention
Community Outreachē Social Responsibility
ē Governanceē Data and Indicesē Appendicesē Forward-Looking

Statements

Number of Peopleē Our Business

3,000

15%
12.1%

8.5%

10%
7.8%

6.9%

2,000
1,000
0

6.5%
3,472

2,352

2018

11.7%

2,151

2019

3,674

1,903

2020
Global Voluntary Turnover

5%
2,125

2021

2022
Percentage

2023

0%

Voluntary turnover varies by country and our turnover rate remains below thecompetitive benchmark in each country where we have team members. The 2023
turnover rate was an all time low of 6.5%6. We continue to drive programs centeredaround retention actions for strategic roles and top-performing talent, as well as
programs targeting all team members, including the following:• Global flexible work arrangements – We incorporate flexibility into our work style byallowing qualified team members to work onsite and remotely. Participating teammembers follow a defined process for their respective country. This way of working
offers a positive benefit to team members, while still supporting our collaborative
style, and allows for constructive and meaningful social interactions.
• Continuous Focus on Well-Being – We continue to support the physical, mental,
financial and overall well-being of our team members realizing that team members'
well-being is crucial to our overall effectiveness as a company. Each country has
well-being embedded into its internal communications, team-building activities andlocal celebrations. In 2023, we continued global Recharge Days, which encourage
NXP team members to take time off or enjoy no meetings in the days surrounding
select company holidays and local celebrations. In 2023, these days coincided with
regional holidays, allowing for seven coordinated opportunities for team members
to rest, recharge and refocus. We also offer benefits programs throughout the worldthat are aimed at physical, emotional, and financial well-being.
• Consistent Communications and Business Updates – This includes quarterly
town-hall meetings, small group sessions between NXP team members and leaders
and regular well-being check-ins led by NXP managers to ensure team members
are thriving.

Looking Ahead
NXP will continue to focus on team-member well-being and on offering rewards
programs designed to retain team members.

6103

NXP Corporate Sustainability Report

We began formally measuring attrition in 2018.

Team Members: Community Outreachē Introduction
ē Sustainability Strategy
ē Our Businessē Product StewardshipWe believe in making a positive difference in the communities where we live and work. We are committed tosupporting these efforts worldwide and encourage our team members to give generously of their time, resources
and talents to impact our communities. Many major NXP sites have their own volunteer and donation programs
focusing on topics such as education, poverty, hunger, health and well-being within their respective communities.

Alignment with the United Nations Sustainable Development Goals

Our community-outreach activities focus on the following four sustainable development goals (SDGs):

ē Environment, Healthand Safetyē Team Members
ē
ē
ē
ē
ē
ē
ē
ē
ē

No Poverty• Donations and volunteerism to support poverty-stricken
communities and disadvantaged youth• Clothing donation drives

Overview

Team-Member Engagement
Thought Leadership

Diversity, Equality and Inclusion
Compensation and Benefits
Development and Growth
Future Talent

Zero Hunger• Food-pantry volunteer service, donations and fundraisers

Good Healthand Well-Being• Supported health-related events and initiatives to benefit
the communities in which we live and work

Quality Education• STEM skills-based training

Team-Member Retention

Community Outreach
Outreachē Social Responsibility
ē Governanceē Data and Indicesē Appendicesē Forward-Looking

Statements• Mentoring and volunteering at local schools and localorganizations• Donating equipment and supplies to support learningand development opportunities

104

NXP Corporate Sustainability ReportTeam Members: Community Outreachē Introduction
ē Sustainability Strategy
ē Our Businessē Product Stewardshipē Environment, Healthand Safetyē Team Members
ē
ē
ē
ē
ē
ē
ē
ē
ē

Overview

Team-Member Engagement
Thought Leadership

Diversity, Equality and Inclusion
Compensation and Benefits
Development and Growth
Future Talent

NXP team members are passionate about having a positive impact on our local
communities. Across the globe, our team members are generous with their time,
resources and talents to make a difference in the areas in which we work and live.
Throughout the year, team members supported a variety of community and/or nonprofit organizations. They gave their time and resources to events that promoted STEM
education, offered food, clothing, computer equipment and basic necessities to thosein need, helped to beautify the environment, supported local blood drives and more.
In 2023, NXP introduced NXP Gives Back, a new workplace giving and volunteering
platform that makes it easier for team members to give, volunteer and make a bigger
impact in their communities. Using the platform, team members in Canada, the United
Kingdom and the United States were able to financially support qualifying community
organizations, as well as log their time spent volunteering with organizations, among
other things.
View a detailed list of 2023 community-outreach activities that center aroundinvesting in STEM education, giving monetary contributions and donation of goods andservices as well as volunteer outreach, at our Giving Back to Our Communities website.

Team-Member Retention

Community Outreach
Outreachē Social Responsibility
ē Governanceē Data and Indicesē Appendicesē Forward-Looking

Statements

105Team Members in Action

NXP Corporate Sustainability Report

Looking Ahead
In 2024, NXP will expand the opportunity for team members to use its NXP Give Backplatform across the world.

SocialResponsibility

Ensuring human rights and engaging with
our supply chain on sustainability issues

Social Responsibility: Human Rights
ē Introduction
ē Sustainability Strategy
ē Our Businessē Product Stewardshipē Environment, Healthand Safety2023 Human-Rights Performance
Human-Rights Due Diligence15

Supply-Chain Due-Diligence
Audits in 2023

External Engagement
NXP Continues to be Called on to
Share Practical Approaches to Laborand Human-Rights Challenges. NXP
Ranked 38 of 1,108 Companies in
the Global Child Forum Benchmark

ē Team Members

Due-Diligence Results

Labor and Human-Rights
Commitments

Instances of Working-Hour
Challenges, Recruitment-Related
Fees Paid by Workers andInsufficient Rest Days

Established the NXP Human Rights
Working Group to Drive the
Next Phase of NXP Human Rights
Program. Reviewed and Updated
the NXP Human Rights Due Diligence
Management System

ē Social Responsibility
ē Human Rights
Rightsē Supplier Engagement
ē Governanceē Data and Indicesē Appendicesē Forward-Looking

Statements

107

NXP Corporate Sustainability Report

NXP recognizes that our operations can impact the human rights of our teammembers, workers in our supply chain and the people in our host communities.
We respect human rights through our own actions and decision-making and we
expect our suppliers and partners to do the same.

In 2023, NXP established the NXP Human Rights Working Group, consisting of crossfunctional representation from Legal, Human Resources, Procurement, Corporate
Trade Compliance and the Sustainability Office. The key charter and responsibilitiesof the Working Group are as follows:

Labor and Human-Rights Commitments• Provide a strategic plan for how NXP will address the continuously evolving
landscape of human rights-related regulatory requirements and stakeholder
expectations

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 Boardand approved by the Board of Directors.

• Review NXP preparedness with respect to these requirements, including an annual
human-rights performance review (from our different perspectives), and reportfindings to the ESG Board• Provide input on changes/updates to the existing human-rights management
system, policies and standards

Social Responsibility: Human Rights
ē Introduction
ē Sustainability Strategy
ē Our Businessē Product Stewardshipē Environment, Healthand Safetyē Team Members
ē Social Responsibility
ē Human Rights
Rightsē Supplier Engagement
ē Governanceē Data and Indicesē Appendicesē Forward-Looking

Statements

108

NXP Corporate Sustainability Report

Human-Rights Due Diligence

In 2023, to identify potentially adverse human-rights impacts and put in place
prevention and mitigation measures, NXP reviewed and updated its Human Rights
Due Diligence Management System. The management system helps ensure NXP
implements a human-rights and environmental due-diligence program that willcontinually identify and address the salient human-rights risks of NXP’s business andoperations, as well as the risks of our value chain. The management system also
helps us comply with relevant regulatory, NXP and customer requirements as wellas the requirements of the International Labour Organization(ILO) Core Conventions,the United Nations Guiding Principles on Business and Human Rights (UNGPs), theOrganization of Economic Co-operation and Development (OECD) Guidelines forMultinational Enterprises and other industry codes, such as the Responsible Business
Alliance (RBA) Code of Conduct version 7.0. 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 riskmanagement 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 and remediation as well as consultation andengagement with workers, management and other key stakeholders in addition tomeasurement and public reporting.
NXP examines human-rights risks on a continual basis and relies on stakeholder
feedback and engagement when evaluating these risks.

Social Responsibility: Human Rights
ē Introduction

Elements of Due-Diligence Process
We evaluate actual andpotential human-rights
impacts.

ē Sustainability Strategy
ē Our Businessē Product Stewardship

Identify and Assess• Self-assessment questionnaire• Audit• Review and assessment of previous due-diligence results

and Safety

We use assessment findings
to guide our growth.

ē Team Members• Policies, standards and tools• ESG Management Board• Capacity-building

Integrate and Act• Collaboration with Purchasing Team• Monthly post-audit follow-up callsē Human Rights
Rightsē Supplier Engagement
ē GovernanceWe gauge progress bymonitoring our actions
and responses.

ē Data and Indicesē Appendices• Supplier risk assessment• Collaboration and engagement with stakeholders
and human-rights experts

ē Environment, Healthē Social Responsibility

NXP's Approach Actions

Track• 30/60/90-day post-audit follow-up calls• Verification audits• Monthly key performance indicators (KPIs)• Survey• Private worker interviews

ē Forward-Looking

Statements

We share how we are
addressing our impacts.

Communicate

109

NXP Corporate Sustainability Report• SpeakUp hotline• Worker-management dialogues and focus-group discussions• Internal and supplier grievance mechanisms• Annual reportingSocial Responsibility: Human Rights
ē Introduction
ē Sustainability Strategy
ē Our Businessē Product Stewardshipē Environment, Healthand Safety

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 andbusinesses across NXP and our supply chain to identify practices that may lead to non-compliancewith our policies and standards.
The Social Responsibility and Procurement Teams identify salient human-rights risks using ourown risk analysis, our collaboration and engagement with key stakeholders – including industry
associations, expert groups and non-governmental organizations (NGOs) – and the results fromour 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.

ē Team Members
ē Social Responsibility
ē Human Rights
Rightsē Supplier Engagement

Fair Wages

ē Governanceē Data and Indicesē Appendices

No FeesAccurate
Contractsē Forward-Looking

Salient Human-Rights Issues

Statements

Forced and Bonded Labor

Young
Workers
Working Hours
and Rest Days110

NXP Corporate Sustainability Report

Fair Treatmentof Vulnerable Workers

Retention ofDocuments

Social Responsibility: Human Rights
ē Introduction
ē Sustainability Strategy

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. We
make these improvements based on our own experiences from our due-diligence work, sharedindustry best practices and emerging issues, trends and developments.

ē Our Businessē Product Stewardship

Sack-dollar

ē Environment, Health

No Feesand Safetyē Team Members
ē Social Responsibility
ē Human Rights
Rightsē Supplier Engagement
ē Governanceē Data and Indicesē Appendicesē Forward-Looking

Statements

file-download
Retention ofDocuments

Person-Carry
Fair Treatment ofVulnerable Workers

CLOCK
Working Hours
and Rest Days

• 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.

• 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.

• The well-being and health and safety of workers must be ensured during a 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.
• 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.

111

NXP Corporate Sustainability ReportSocial Responsibility: Human Rights
ē Introduction• 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.

ē Sustainability Strategy
ē Our Businessē Product Stewardshipē Environment, Health• A comprehensive policy for child labor clearly states the minimum age for workers.

address-card
Young Workers

and Safety

ē Data and Indices• Personal-record systems are in place as a means of identification and verification.

• A grievance mechanism is in place to confidentially report policy violations.

ē Social Responsibility

ē Governance• An age-verification process is in place with inspection of validity of at least two identity documents,
to be returned to worker.
• If workers are discovered to be below the legal age limit, workers will be protected and provided
the opportunity for completion of education.

ē Team Members

ē Human Rights
Rightsē Supplier Engagement• 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.

• Contracts may not violate relevant laws or place a worker at risk.

FILE-CONTRACT
Accurate Contracts

ē Appendices• Prior to departure or hiring, workers are provided with an accurate written employment contract with detailsof 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.

ē Forward-Looking

Statements• 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.

search-dollar• Overtime rates are to be applied to the base wage as required by law or employment contract, whicheveris 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.

Fair Wages• 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.

112

NXP Corporate Sustainability ReportSocial Responsibility: Human Rights
ē Introduction

Salient Human-Rights Issues: 2023 Results
Our Operations

Our Supply Chain

Workers did not pay fees.

33% of audited suppliers had
nonconformances related to hiring fees.
The one supplier with a recruitment-fee
finding has fully repaid their affected workers
and implemented policies and proceduresto prevent recurrence. Findings of othersuppliers were related to lack of policies
and procedures.

Personal documents are retainedby workers.

Of 15 suppliers and two labor agents, three
suppliers were found to lack in policies
and procedures to prevent the retention ofworkers' personal documents. One supplierhas resolved this finding.

NXP continued to comply with
our Employer Pays policy, which
ensures these workers aretreated with respect and dignity
during recruitment and hiring.

The resumption of supplier audits enabled
NXP to interview workers and gauge theirwell-being during the pandemic. No
serious issues have been reported, eventhough workers were provided with the
NXP anonymous phone line to report any
concerns or impacts to their rights.

Working Hours
and Rest Days

All workers worked in compliancewith the 60-hour-per-week work
schedule and received
one rest day after six days ofwork.

40% of audited suppliers did not monitor
working hours and rest days, resulting
in nonconformances against NXP's
requirements. Four suppliers have yet toclose this nonconformance.

Young Workers

No child labor. All young workers
are in accordance with relevantlaws and regulations.

Three cases of child labor findings inrelation to lack of policies and/or procedureson child labor.

Accurate
Contracts

Accurate contracts issued to all
workers in their native language.

33% of audited suppliers had inaccurate
contracts. All suppliers, except one, haveclosed this nonconformance.

Fair Wages

No discrepancies in wages orbenefits.

27% of audited suppliers had discrepancies
in wages and benefits. All suppliers haveclosed this nonconformance.

ē Sustainability Strategy
ē Our Businessē Product Stewardship

No Feesē Environment, Healthand Safetyē Team Members
ē Social Responsibility
ē Human Rights
Rightsē Supplier Engagement
ē Governanceē Data and Indicesē Appendicesē Forward-Looking

Statements

113

NXP Corporate Sustainability Report

Retention ofDocuments

Fair Treatmentof Vulnerable
Workers

Social Responsibility: Human Rights
ē Introduction
ē Sustainability Strategy
ē Our Businessē Product Stewardshipē Environment, Healthand Safetyē Team Members
ē Social Responsibility
ē Human Rights
Rightsē Supplier Engagement

Human-Rights Achievements

NXP’s Social Responsibility Program was again externallyrecognized in 2023 for its work in addressing modernday slavery issues within NXP operations and our supply
chain. NXP was part of a stakeholder meeting organizedby the RBA in partnership with the European Parliament's
Responsible Business Conduct Working Group, IMCO
S&D and the NGO Anti-Slavery International, dedicatedto the EU Forced Labor Regulation. NXP presented acase study on Remediation of Forced Labor throughcollaboration.
The RBA invited NXP to participate in two expert panels
at the Responsible Business 2023 Conference, in Santa
Clara, California. In the first panel, focused on EthicalRecruitment, NXP shared our approach to ethicallyrecruiting foreign migrant workers and our continued
efforts to engage with the rights holders involved.

The second panel focused on how the industry isapproaching the challenges and opportunities posedby the upcoming EU requirements for ESG reporting.
NXP was also invited to speak at the 12th UN Forumon Business and Human Rights. We spoke at thesession titled, "Saliency 2.0: Why Human Rights
Saliency Assessments Matter for Effective UN Guiding
Principles Implementation and Their Evolution." Weshared that NXP has been performing human-rights
saliency assessments on our own operations and in
our supply chain for the better part of the last 12 years
and explained that we have seen the assessment
process evolve from risk assessments to audits and,most recently, to capacity-building and stakeholder
engagements. These assessments have helped us
prioritize our action plans, so we can effectively manage
and mitigate the salient human-rights risks we identify.

ē Governanceē Data and Indicesē Appendicesē Forward-Looking

Statements

114

NXP Corporate Sustainability Report

NXP continues to explore how to advance our human-rights work through community and stakeholder
engagement. In 2023, in conjunction with due-diligence work on our recruitment agencies in Indonesia,
NXP, together with our third-party partner, Verité, took the opportunity to visit two vocational schools
in rural villages in Yogyakarta, in Central Java. These sites were chosen because NXP had, through ourIndonesia recruitment agencies, previously recruited potential job candidates from these schools. The
main goal of each visit was to engage with the students and to provide awareness training on what theirrights are, upon graduation, if they choose to become migrant workers. It is critical to help this groupof stakeholders understand their rights so they avoid becoming victims of exploitation from unethicalrecruitment agents, even though they may or may not be recruited by NXP. In total, around 50 students
attended the training conducted. Alumni of both schools who had previously worked and completed
their employment contracts at NXP were also invited to attend the training to provide accounts of theirexperiences as migrant workers in NXP.

Social Responsibility: Supplier Engagement
Supply-Chain Compliance Goals

ē Introduction
ē Sustainability Strategy
ē Our Business

100%

of Key Suppliers Sign Supplier Codeof Conduct Conformity Statement

85%

Closure Rate for Corrective
Action Plans

100%

Certified Mineral Smelters

Supply-Chain Due Diligence,
Engagement andCollaboration

ē Product Stewardship2023 Supplier Engagement Performance

ē Environment, Healthand Safetyē Team Members
ē Social Responsibility
ē Human Rights
Engagement
ē Supplier Engagement100%of Suppliers Signed the NXP Supplier
Code of Conduct Conformity
Statement

80%

Closure Rate on Corrective Action
Plans for Supplier Audits in 2023

100%

Certified Mineral Smelters

Participated in RBA's ProjecttoRiskin the Poly-Silicon Supply
Chain that is Critical for the
Semiconductor Industry

ē Governanceē Data and Indicesē Appendicesē Forward-Looking

Statements

NXP is committed to ensuring that working conditions in our supply chain are safe, thatworkers are treated with respect and dignity and that our products and processes areenvironmentally 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 andonsite 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.

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NXP Corporate Sustainability Report

Looking Ahead
Our goal is to continue working closely with suppliers who have had audit
nonconformances or priority violations, to ensure they fully understand ourstandards and are equipped with the skills and knowledge to avoid recurrence.
Engagement with high-priority suppliers will continue to be an important activity,
too, since it helps us understand the business and operational challenges they
face and helps us evaluate the adequacy and effectiveness of our standards
and policies. In 2023, we began development of a vendor-collaboration portal,a project delayed by the COVID-19 pandemic. The portal will increase two-way
communication between us and our supply chain and will help us maintain
policies described in the NXP Supplier Code of Conduct and elsewhere.

Social Responsibility: Supplier Engagement
ē Introduction
ē Sustainability Strategy
ē Our Businessē Product Stewardshipē Environment, Healthand Safetyē Team Members
ē Social Responsibility
ē Human Rights
Engagement
ē Supplier Engagement
ē Governanceē Data and Indicesē Appendicesē Forward-Looking

Statements

116

NXP Corporate Sustainability Report

Supplier Code of Conduct

Supply-Chain Due Diligence

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 RBA's
Code of Conduct version 7.0, the Universal Declarationof Human Rights (UDHR), UN Guiding Principles, the ILO
Declaration on Fundamental Principles and Rights at
Work, the 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 conductedinternally and externally, as well as the NXP Auditable
Standards on Social Responsibility.

Suppliers undergo an annual supplier risk assessment.
In 2023, 227 supplier locations received a riskassessment score equal to or above 49%, indicatinghigh or priority risk and, as a result, may be required
to complete an NXP Self-Assessment Questionnaire
and/or participate in an audit.

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.

The Supplier Code of Conduct is reviewed annually.
It had a major revision and update in 2021 in responseto regulatory updates, customer requirements andexpectations, industry best practices and inputs frominternal and supplier audits.
Suppliers must adopt or establish a management
system that is related to the content of the NXP
Supplier Code of Conduct. The supplier's management
system must be designed to (a) ensure compliancewith applicable laws, regulations and customer
requirements related to the supplier’s operations andproducts, (b) conform to the NXP Supplier Code of
Conduct, (c) identify and mitigate operational risks
related to the NXP Supplier Code of Conduct and (d)communicate the requirements and expectations totheir own suppliers.

Our suppliers submit a signed conformance letter
stating that they abide by the NXP Supplier Code of
Conduct and are promptly notified with updates to ourrequirements.

NXP works collaboratively with suppliers to help themachieve and maintain our standards and expectations.
Our preference is to work with suppliers to address

potential deficiencies by helping them develop andimplement a corrective action plan. In 2023, wecompleted 15 supplier audits and two labor-agent
audits. From our supplier audits, we identified a totalof 537 nonconformances. We closed 427 of thosenonconformances, yielding a closure rate of 80%.
We did not terminate business with any of these
suppliers, in light of their willingness to take the steps
needed to close their corrective action plans.
The number of nonconformances decreased in 2023
compared to 2022 even though we conducted more
audits in 2023. This is due to maturity in some of the
suppliers we audited.

Social Responsibility: Supplier Engagement
ē Introduction
ē Sustainability Strategy
ē Our Businessē Product Stewardshipē Environment, Healthand Safetyē Team Members
ē Social Responsibility
ē Human Rights
Engagement
ē Supplier Engagement
ē Governanceē Data and Indicesē Appendicesē Forward-Looking

Assessments and Audits

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 anddevelopments 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 two advisory firms, Verisk
Maplecroft and Verité Cumulus, to identify potential issues relevant to our supply
chains. 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 forcedlabor, child labor and working conditions. Verité Cumulus 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 andassesses labor agents, in both the receiving and sending countries and regions,along with their recruitment practices.

Risk Assessment

Our supplier risk assessment, developed jointly with our procurement andsustainability teams, is reviewed and updated to reflect changing perspectives inenvironment, 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 scoreis the product of the three individual scores, expressed as a percentage. A higher
percentage implies a higher risk exposure.

Statements

Risk Score =117

NXP Corporate Sustainability Report[ (Country Risk) x (Product or Service) x (Spend) ] x 100
1,000

Social Responsibility: Supplier Engagement
ē Introduction
ē Sustainability Strategy
ē Our BusinessCountry 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 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.

ē Product Stewardshipē Environment, Healthand Safetyē Team Members

Definition

Human-Rights Risk Atlas

Labor Rights andProtection

Measures the risk of association with and involvement in violations of laborrights 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 ofexisting 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 byvariations in regulatory and government policy, the costs associated withcorruption and lack of respect for the rule of law.

Governance10%

Climate Change andEnvironmental Risk Atlas

Climate-Change
Vulnerability

Evaluates vulnerability of populations to extreme, climate-related eventsand changes in major climate parameters over the next 30 years.

Environment

10%

ē Governanceē Data and Indicesē Appendicesē Forward-Looking

Statements

Scale Used in Maplecroft Scorecard

118

NXP Corporate Sustainability Report

Index
WeightingIndex

ē Social Responsibility
ē Human Rights
Engagement
ē Supplier Engagement

Relevant Topic in NXP
Supplier Code of Conduct

Maplecroft Report

NXP's Risk Score

Extreme: 0.0 < Score ≤ 2.5

10

High: 2.5 < Score ≤ 5.0

7Medium: 5.0 < Score ≤ 7.5

5

Low: 7.5 < Score ≤ 10.0

1Social Responsibility: Supplier Engagement
ē Introduction
ē Sustainability Strategy
ē Our Businessē Product Stewardshipē Environment, Healthand Safetyē Team Members
ē Social Responsibility
ē Human Rights
Engagement
ē Supplier Engagement
ē Governanceē Data and Indicesē Appendicesē Forward-Looking

Statements

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 productrisk to NXP. Material suppliers and manufacturing-service subcontractors pose thesecond-highest product risk.
The risk level for indirect-spend suppliers, which includes sourcing of all goods andservices 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 yearsof 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
Professional Services (Consultancy, Advisers)
IT-Related Services
Office Services (Telecommunications, Office Products)
Utilities (Gas, Electricity, Water)
Travel-Management Services

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NXP Corporate Sustainability Report

1

Onsite 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.
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

Spend Risk
To assess business-criticality risk, we group suppliers into three categories basedon annual spend: high risk (above $500,000), medium risk ($100,000 to $500,000)
and low risk (under $100,000).

Social Responsibility: Supplier Engagement
ē Introduction
ē Sustainability Strategy
ē Our Businessē Product Stewardshipē Environment, Healthand Safetyē Team Members
ē Social Responsibility
ē Human Rights
Engagement
ē Supplier Engagement
ē Governanceē Data and Indicesē Appendices

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 humanrights, 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 improvetheir processes and procedures in these areas. The audits are notintended to pass or fail a supplier, but rather to guide the supplier ina 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:
1) documentation reviews, 2) management and private worker
interviews and 3) physical inspection of all facilities, including any
dormitories (onsite audit only). Audits also include interviews withlabor agents and onsite service providers, such as janitorial, cafeteria,
security and other services. NXP's Corporate Social Responsibilityand Human Rights Audit Program is conducted in accordance with adefined process flow described in our "Pre-Audit Activities" illustration.

ē Forward-Looking

Statements

In 2023, we participated in an RBA special project to map
and assess risk in the poly-silicon supply chain that is
critical for the semiconductor industry. The project resulted
in low exposure risk for the semiconductor industry andfurther outreach needs to be carried out for two suppliers.

120

NXP Corporate Sustainability Report

Pre-Audit Activities (Under 3 Months)
Start

Supplier
Risk
Assessment

Prepare andFinalize Audit
Plan

Supplier
Selection

Onsite Audit

Training Needs
Analysis

Training
Required?
Yes
ProvideTraining

No

Supplier SelfAssessment
andPreparation
for Audit

Supplier
Corrective
Action Plan

Follow-Up(Re-Audit if
Needed)Annual Review

Social Responsibility: Supplier Engagement
ē Introduction
ē Sustainability Strategy
ē Our Businessē Product Stewardshipē Environment, Healthand Safetyē Team Members
ē Social Responsibility
ē Human Rights
Engagement
ē Supplier Engagement
ē Governanceē Data and Indicesē Appendicesē Forward-Looking

Statements

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 todetermine if additional training is needed.
Self-Assessment
The supplier then completes the NXP Supplier Self-Assessment and sends it backto 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 andcomplexity of the supplier’s operations, a typical audit requires two or three fulldays (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 createa management system to prevent the issue from reoccurring. Audits use threeclassifications for corrective action plans: priority violation, major nonconformanceand 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 immediaterisk of life, the supplier has 24 hours to complete the corrective action. Otherwise, thesupplier 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 ofbusiness.
• 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.

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NXP Corporate Sustainability Report

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 oftraining 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.

Social Responsibility: Supplier Engagement
ē Introduction
ē Sustainability Strategy
ē Our Businessē Product Stewardshipē Environment, Healthand Safetyē Team Members
ē Social Responsibility
ē Human Rights
Engagement
ē Supplier Engagement
ē Governance

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 eased
and borders reopened, we transitioned back to 100% onsite audits in 2023. We will,
however, continue to keep the remote audit protocols on standby in case they areneeded or if there is an escalation of a pandemic-related crisis similar to what wesaw during the COVID-19 pandemic.
Pre-Assessment MeetingTechnical 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

ē Data and Indicesē Appendicesē Forward-Looking

Statements

Identification of Auditee
Resource Personnel
Overview of TechnicalRequirements
Overview of Document Review
Process
Confidentiality and DataPrivacy Concerns

122

NXP Corporate Sustainability Report

Align VideoConferencing with
File-Sharing Platform

Gathering Informationfrom Workers

Employee Roster

Closing Meeting

During the pre-assessment period, the Audit Team and the supplier holdvideoconference calls to validate collected information, agree on a timeline, discussconfidentiality and address data-privacy concerns. Technical rehearsals serve to
confirm that the supplier has access to the videoconferencing platform selected forthe audit and that interview sessions, held with randomly selected workers, will takeplace 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 gave us a way to perform due diligence during the COVID-19 pandemic,
but they were 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 assessmentof environment, health and safety (EHS) concerns, since extensive facility inspections
aren’t feasible with a remote process. Also, certain documents cannot be shared inadvance 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.
Remote audits can be a useful tool for follow-up or verification audits with suppliers
who performed well in their initial audit and are a good alternative for suppliers whoalready have a mature and strong social-responsibility program in place.

Onsite Audits

Onsite audits of our suppliers can be announced or unannounced, conducted by anapproved 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 anaudit, verify that the audit is conducted per the NXP Auditable Standards and provide
consultation if the supplier has challenges.

Social Responsibility: Supplier Engagement
ē Introduction
ē Sustainability Strategy
ē Our Businessē Product Stewardshipē Environment, Healthand Safetyē Team Members
ē Social Responsibility

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 performanceof RBA members and their supply chain as measured against their audit criteria.
In 2023, through our trading relationships with our key suppliers in the RBA-Online
platform, we tracked and followed up with suppliers who had initiated and completed
the RBA VAP audits and ensured that progress was made in the closure of the VAP
audit findings. 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. We
reviewed and monitored 23 RBA VAP audits initiated by other RBA members withthe same supply base in 2023.

ē Data and Indices

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 toany other member company working with that supplier. Report sharing is predicatedon 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.

ē Appendices

Validation

ē Human Rights
Engagement
ē Supplier Engagement
ē Governanceē Forward-Looking

Statements

Each year we report publicly on our supplier’s annual top audit nonconformances andeach month we report KPIs to the Sustainability Office on topics such as violations andnonconformances 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 with the Ethics Committee and raised to the ESG
Management Board in case of significant findings. Monthly and sometimes weekly
meetings are held with procurement managers to discuss the results of a supplieraudit, the corrective action plan and the supplier's progress toward closing out theirnonconformances.
1

123

NXP Corporate Sustainability Report

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.

Workplace Grievance Mechanisms

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 theworkers' languages. Suppliers must train their workers on the grievance mechanism
and communicate the process to them, so workers can raise concerns without fearof 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 to 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, theauditor 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 witha private interview, where potential negative impacts, such as retaliation or
discrimination could occur. NXP addresses this by providing the NXP grievancemechanism 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, weanalyze the root cause and modify the relevant internal control system to preventa possible recurrence. Acknowledgments are sent as soon as possible after receiving
the complaint and investigation records are updated regularly. No allegations werereceived in 2023.

Social Responsibility: Supplier Engagement
ē Introduction
ē Sustainability Strategy
ē Our Businessē Product Stewardshipē Environment, Healthand Safety

Supplier Assessment and Audit Results
2023 Supplier Risk Assessment

We annually conduct a supplier risk assessment to determine our audit schedule forhigh-risk supplier locations. Risk is calculated according to three scoring categories– country, product and spend risks – and assigns a risk factor as either medium risk(≥49% and <70%), high risk (≥70% and <100%) or priority risk (100%). In 2023, we assessed
6,426 supplier locations and identified 148 medium-risk, 73 high-risk and 6 priority-risk
supplier locations. The 2023 supplier risk assessment identified priority-risk supplierlocations in Malaysia.
2023 Medium-, High- and Priority-Risk Scores for Supplier Locations

2023 Medium-, HighPriority-Risk
for Supplier
Locations by Country
byandCountry
and Region Scoresfrom Annual
Risk Assessment
and Region from Annual Risk Assessment

ē Team Members
ē Social Responsibility
ē Human Rights
Engagement
ē Supplier Engagement
ē Governance

100%

75%

ē Forward-Looking

Statements

8.1%
3.4%

2.7% ----

50%

25%

23.0%
35.6%

11.0%

---- 2.0%
11.5%

30.1%

Medium Risk: ≥49% and <70%
TaiwanJapan

124

NXP Corporate Sustainability Report

100%

29.1%

18.2%

0%

4.1%
16.4%

4.1%

ē Data and Indicesē Appendices0.7%

High Risk: ≥70% and <100%

Singapore
United States

Malaysia
ThailandPriority Risk: 100%

Mainland China
Philippines

South Korea
PortugalSocial Responsibility: Supplier Engagement
ē Introduction
ē Sustainability Strategy
ē Our Businessē Product Stewardshipē Environment, Healthand Safety

Supplier-Audit Overview

Since 2013, when we began our Corporate Social Responsibility and Human Rights
Audit Program, we have conducted 201 supplier audits. That includes labor-agent
audits as well as verification audits, which began in 2014.

initiating member fails to do so, the RBA may ask another member with the same
supply base to intervene. In 2023, NXP was not asked by the RBA to help close anyof the corrective actions identified in audits initiated by other members.

In 2023, we conducted 15 announced onsite audits for suppliers located in Japan,
Mainland China, Malaysia, South Korea and Taiwan.

An NXP auditor is present at all our onsite audits. This demonstrates our commitment
to social responsibility and human rights and also lets us observe, in person, howmanagement treats workers.

As part of our membership in the RBA, in addition to the 15 supplier audits we
conducted ourselves, we also reviewed and monitored 23 RBA VAP audits initiatedby other RBA members with the same supply base. It is RBA policy that the initiating
member work to close any corrective actions resulting from an audit but, if theDuring an audit, worker interviews are conducted in private and at random.
To determine the number of worker interviews to be conducted, we take the squareroot of the worker population. In 2023, 424 random worker interviews were conducted,
involving 46% men and 54% women with varying lengths of service and age range.

ē Team Members
ē Social Responsibility
ē Human Rights
Engagement
ē Supplier Engagement

New Supplier Audits and Verification Audits

ē Governance25ē Data and Indices

Number of Audits

Statements

100%

75%

15

18%

18%

10%
14%
5%
24%

50%

10

21
17

19

35%

16

15

14

13
4

0

2014

2015

2016

2017

2018

New Audits

NXP Corporate Sustainability Report

7%
3%

6%

24%

5

125

7%
10%

20

ē Appendicesē Forward-Looking

Audits by Country and Regionand Labor Agent
Supplier
Supplier andLabor-Agent
Auditsby Country and Region

New Supplier Audits and Verification/Closure Audits

2019

2020

15

25%

48%

6

2021

Verification/Closure Audits

2022

2023

2014

48%

2015

TaiwanPhilippines

24%

24%

20%

8%
8%

2017

Mainland China
South Korea

25%

15%

20%

14%

23%

12%

38%

25%
64%
25%

7%

25%

27%

2019

Japan
Indonesia

2020

Singapore
Thailand

24%

50%

46%

2018

12%

18%

7%

18%
12%

2016

7%

13%

12%

24%

0%

6%
6%

7%

24%

13%

14%

12%

2021

2022

2023

Malaysia
Hong Kong

Social Responsibility: Supplier Engagement
ē Sustainability Strategy
ē Our Businessē Product Stewardshipē Environment, Healthand Safetyē Team Members
ē Social Responsibility
ē Human Rights
Engagement
ē Supplier Engagement

Audits conducted in 2023 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 the NXP Supply Chain Program had enhanced socialresponsibility performance and improved working conditions for their workers. At
three of the five suppliers we had previously audited, we noted a maturity in socialresponsibility practices and found they had improved on their previous performance.
We will continue to work with our suppliers as they implement our standards into theirbusiness practices and management systems.
Two ratios – the number of nonconformances identified compared to the number ofaudits conducted and the number of priority violations identified compared to thenumber of audits conducted – are lower in 2023 compared to 2022. There are several
reasons for this. We conducted 15 audits in 2023 compared to 14 in 2022 and this points
to improved performance maturity in the supply chain, and the impact fromthe COVID-19 pandemic has stabilized, enabling suppliers to re-focus on improving
and maintaining their performance. In addition, we also audited in geographies, such
as Japan and South Korea, where the maturity levels are often higher.

Number of Nonconformances by Rating
1,000
Number of Noncomformancesē Introduction

Number of Nonconformances by Rating

Supplier Audit Nonconformance Results

800

35
42

248

600

ē Forward-Looking

Statements

126

NXP Corporate Sustainability Report

228

13

34

246

191

400
555

489

200
0

2015

2016

2017

5

5

314

2018

17
264

204
336

2014

12

473

Minor

Rate of Noncomformances per Total Number of Audits

ē Appendices

33

345

ē Governanceē Data and Indices

53

322

75

148

69
76

80

2019

2020

2021

Major

332

2022

256

2023

Priority

Average Number of Nonconformances per Audit
60
50
40
30
20

51

43

38

35

29

23

10
0

26

36

27

21

1

2

2

1

0.6

0.7

1

0.8

2014

2015

2016

2017

2018

2019

2020

2021

Total Nonconformance Rate

Priority Violations Rate

2

1

2022

2023

Social Responsibility: Supplier Engagement
ē Introduction
ē Sustainability Strategy
ē Our Businessē Product Stewardshipē Environment, Health

Identifying the total number of nonconformances per country/region helps the
Audit Team determine country risks, complete the annual assessment of supplierrisk and strategize the priorities of future audit planning. In 2023, our supply-chain
audits focused on Mainland China, where the recent lifting of strict COVID-19 border
restrictions allowed us to conduct onsite supplier assessments.
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 100% onsite audits in 2023, we are better able to identify gaps
and nonconformances that are harder to identify with remote audits. While twocategories – "Labor and Human Rights" and "Health and Safety" – continue to reoccur
in our findings, onsite audits have made it easier to observe and assess actual
practices. In addition, being able to engage with and interview workers, face-to-face,allows us to better assess their well-being.

and Safetyē Team Members
ē Social Responsibility
ē Human Rights
Engagement
ē Supplier Engagement
ē Governance

100%

200

150

87

ē Forward-Looking

10

100

50

113

19

Japan

14

Mainland China

MalaysiaMinor

NXP Corporate Sustainability Report

12

82
21

0

6%

1%
4%

15%

16%

22%

20%

1%
7%
12%
16%
19%

22%

21%

2%

2%

1%

6%

5%

8%

13%

13%

7%

19%

20%

21%

21%

28%

38%

39%

37%

2017

2018

2019

14%

1%
6%
6%

21%

28%

18%

11%

44%

49%

2020

2021

2% --

19%

1%

1%

1%

7%

7%

14%

11%

18%

23%

25%

21%

36%

37%

2022

2023

101

Statements

127

50%

35

ē Appendices

2%

75%
7

ē Data and Indices

Nonconformances by Category
Nonconformancesby Category2023 Nonconformances by Country and Region
2023 Nonconformancesby Country and Region

Major

South Korea
Priority

36

Taiwan

25%
33%

0%

2014

37%

2015

45%

2016

Labor and Human Rights
EthicsHealth and Safety
Environment

Management Systems

GeneralSocial Responsibility: Supplier Engagement
ē Introduction
ē Sustainability Strategy

After eleven years of auditing our supply chain and identifying more than 5,000
nonconformances, we target the top five subcategories as illustrated below. Freely
Chosen Employment is still the most frequently reoccurring nonconformance.
Top Five Nonconformances by Subcategory 2013-2023

ē Our Businessē Product Stewardshipē Environment, Healthand Safetyē Team Members
ē Social Responsibility
ē Human Rights
Engagement
ē Supplier Engagement

Top Five Nonconformances by Subcategory 2013-2023
10%
8%
6%
10%

4%

7%

6%

2%

5%

6%

ē Governanceē Data and Indices0%

Freely Chosen
Employment

Emergency
Preparedness

Working Hours

Wages andBenefits

HumaneTreatmentē Appendicesē Forward-Looking

Statements

128

NXP Corporate Sustainability Report

In 2023, the top three categories of priority findings were Working Hours, Emergency
Access and Legal Benefits.

The 15 audits conducted in 2023 uncovered 17 priority violations.
Top Three Subcategories of Priority Violations

2023

Working Hours

5

Emergency Access4

Legal Benefits3• Working Hours – The five priority findings for Working Hours were identified at
suppliers in Mainland China and Malaysia, where workers were found to have worked
more than 60 hours per week, including overtime work.
• Emergency Access – The four priority findings for Emergency Access were identified
in situations where emergency exits were blocked.
• Legal Benefits – The three priority findings for Legal Benefits were identified at
suppliers in Malaysia, for 1) not meeting legal requirements for minimum wages, 2)
not meeting legal requirements for overtime wage payment and 3) not providing
legally mandated benefits to workers.

Social Responsibility: Supplier Engagement
ē Introduction
ē Sustainability Strategy
ē Our Businessē Product Stewardshipē Environment, Healthand Safetyē Team Members
ē Social Responsibility
ē Human Rights
Engagement
ē Supplier Engagement
ē Governance

Audit Closure Rate

In 2018, we set a goal to close 80% of our supplier nonconformances within a 90day 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 fromaudits 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, typicallyrequire more than 90 days to close.
In 2013, when we began auditing suppliers, our closure rate was around 40%. Throughcontinuous collaboration with our suppliers, our closure rate has continued to increaseor remain high year over year. The closure rate for 2023 was 80%. NXP is committed
to working with suppliers to reach 100% closure in their corrective actions and this isclearly demonstrated by 100% closure of all audit findings from 2018 to 2022.
While it is our stated goal to achieve the targeted closure rate, indicated by the linein the chart, ultimately we aim for 100% closure on all audit nonconformances foundwithin a calendar year. We continue to work with audited suppliers to fully close theremaining nonconformances in the subsequent year. As of this reporting, we haveclosed all the remaining findings from 2021 and 2022 audits.
Audit Closure-Rateē Data and Indices

Audit Closure Rateē Appendices100%ē Forward-Looking

80%

Statements

3%

29%

15%

11%

12%

89%

88%

2021

2022

60%
97%

40%

85%
71%

80%

20%
0%

2018

2019

Closed in the Reporting Year129

NXP Corporate Sustainability Report

2020

Closed after the Reporting Year

2023
Closure-Rate Goal

Governance
Creating a structured approachto ensure corporate excellenceGovernance: Overview
ē Introduction
ē Sustainability Strategy
ē Our Businessē Product Stewardshipē Environment, Healthand Safetyē Team Members

We conduct our operations in accordance with internationally accepted principles
of good governance and best practice, while ensuring compliance with the corporategovernance requirements applicable in the countries in which we operate.

• Any issuance of common or preference shares, for any reason, is subject to theapproval of the Annual General Meeting of shareholders

Corporate Governance Highlights

ē Social Responsibility
ē Governance• Each share of our common stock confers the right to cast one vote at theAnnual General Meeting of shareholders

Overview

Board of Directors
EthicsAnti-Bribery and Corruption
Privacy

Cybersecurity
TaxationEnterprise Risk
Management

ē Business Resilienceē Data and Indicesē Appendicesē Forward-Looking

Statements

131• We do not have a "poison pill" policy in place• We have a transparent corporate structure, with approval rights of our general
meeting of shareholders for any significant change in the identity or nature of
our company or business

ē
ē
ē
ē
ē
ē
ē
ē

NXP Corporate Sustainability Report• Our directors are appointed for one-year terms and are elected or re-elected
every year by the shareholders at the Annual General Meeting of shareholders

We are subject to a variety of requirements for corporate governance and bestpractice codes, but the most relevant are those in the Netherlands and the UnitedStates. The current Dutch Corporate Governance Code (DCGC), dated December 8,
2016, as amended on December 20, 2022, applies to all Dutch companies listed ona government-recognized stock exchange, whether in the Netherlands or elsewhere.
The code is based on a “comply or explain” principle.

• We have a one-tier board structure• We only have outstanding common stock. No priority, preference or other shares withspecial voting rights are issued and cannot be issued without majority shareholder
approval• We allow special meetings of our shareholders to be called when requested,using the written request of shareholders holding at least 10% of our outstanding
voting stockGovernance: Board of Directors
ē Introduction
ē Sustainability Strategy
ē Our Businessē Product Stewardshipē Environment, Healthand Safetyē Team Members
ē Social Responsibility

The number of executive and non-executive directors is determined by the Board.
Our directors have a wide variety of relevant skills, professional experience andbackgrounds. Their diverse viewpoints and varying perspectives help us represent theinterests of all our stakeholders. Each of the directors attended >75% of the aggregate
Board meetings and meetings of committees of which they were a member, during
the periods for which they served in 2023.

ExpertiseTaxationManagement

Diversity

Overview

Board of Directors
EthicsAnti-Bribery and Corruption
Privacy

Cybersecurity
Enterprise Risk

ē Business Resilienceē Data and Indicesē Appendicesē Forward-Looking

Statements

132

Board Composition

The Board, with the support of the Nominating, Governance and Sustainability
Committee, maintains an appropriate balance with respect to the expertise,
experience and diversity on the Board. Evaluations of Board composition consider
a number of matters, including director independence, skill set, experience, expertiseand diversity, to ensure the Board remains effective and well-qualified. In 2023, weadded one new independent director, Mr. Moshe Gavrielov. Mr. Gavrielov has expertisein the areas of environmental, social and governance (ESG) issues, human capitaland risk management, among others.

ē Governance
ē
ē
ē
ē
ē
ē
ē
ē

NXP is committed to effective corporate governance that strengthens theaccountability of the Board of Directors (the Board) and management. The Board iscollectively responsible for the management, general and financial affairs of NXP, aswell as our policy and strategy. The Executive Director of the Board, who is also our
President and CEO, is responsible for day-to-day management and for preparationand execution of Board resolutions, to the extent these tasks are not delegated to a
Board Committee.

NXP Corporate Sustainability Report

The Board is committed to supporting, valuing and leveraging diversity in its
composition. This includes gender and ethnic/cultural diversity, to ensure a balancein representation. The Board comprises a mix of men and women, with neither genderaccounting for more than 70% of seats.

Independence of the Board

The Executive Director, NXP's President and CEO, Kurt Sievers, is not an independent
director. The nine non-executive directors (90%), including the chairman, areindependent directors under the applicable Nasdaq listing standards, the Board's
rules of procedure and the DCGC. Our Board, excluding the Executive Director, has anaverage tenure of approximately four years. Eight of our non-executive directors havebeen members of the Board for four years or less.

Board Directorships and Board Memberships

The Nominating, Governance and Sustainability Committee has determined thatmembers of the Board shall have no more than four board memberships in publiccompanies in addition to service on the NXP Board.

Governance: Board of Directors
ē Introduction

Board of Directors

ē Sustainability Strategy
ē Our Businessē Product Stewardship

Kurt Sievers
President
and CEO, NXP
Semiconductors
N.V.

ē Environment, Healthand Safetyē Team Members
ē Social Responsibility

Ethnic Diversityx

Gender Diversity

Gregory Summe Karl-Henrik
SundströmManaging
Former CEO,
Partner, Glen
Capital Partners Stora Enso

x

x

x

x

x

54

60

52

69

65

67

64

53

67

64

Director Since

2020

2021

2021

2023

2022

2019

2013

2019

2015

2019

Executive Leadership

x

x

x

x

x

x

x

x

x

x

EthicsIndustry and Technology
Experience

x

x

x

x

x

x

x

x

x

Privacy

Strategic Planning

x

x

x

x

x

x

x

x

x

x

x

x

x

x

x

x

Overview

Board of Directors
Anti-Bribery and Corruption
Cybersecurity
TaxationEnterprise Risk
Management

ē Business Resilience

Knowledge and Expertise

Financial Expertise
Manufacturing and Operations

x

x

x

x

x

x

x

x

International Experience

x

x

x

x

x

x

x

x

Human Capital

x

x

x

x

x

x

x

x

x

x

x

x

x

x

ē Data and Indices

Risk Management

ē Appendices

Corporate Governancex

ESG Expertisex

ē Forward-Looking

Statements

IT and Cybersecurity

NXP Corporate Sustainability Report

x
x

x

x

x

x
x

x

x

x
x

x

x

x
x

Board Committees
Audit

x

Compensationx

Nominating, Governanceand Sustainability
133

Jasmin Staiblin
Julie Southern
Lena Olving
Moshe Gavrielov Chunyuan Gu
Former CEO,
Former President Former President Former President Former Chief
Alpiq
Commercial
and CEO,
and CEO of Xilinx, of Asia/ME/
Officer, Virgin
Mycronic AB
Africa, ABB LtdInc.
Atlantic Airways
Ltd

Age

ē Governance
ē
ē
ē
ē
ē
ē
ē
ē

Annette Clayton Anthony Foxx
Former Chief
President andCEO, Schneider Policy Officer,
Electric SE North Lyft Inc
America

x
x
Chair

x

x
x

Chair
Chair

x

x

x

Governance: Board of Directors
ē Introduction

Knowledge and Experience of the Board of Directors

ē Sustainability Strategy

Executive Leadership

Executive-management experience with large or internationalorganizations

ē Our BusinessIndustry and Technology Experience

Experience with and understanding of the technology industry,including the semiconductor and automotive industries

Strategic Planning

Planning knowledge of corporate strategy and strategicplanning and experience with mergers, acquisitions and otherstrategic transactions

Financial Expertise

Financial, audit and accounting expertise and experience withcorporate finance, including financial experts as named in thecompany filings and experience as a Chief Financial Officer,
Auditor, Corporate Treasurer or CEO of a public company

Manufacturing and Operations

Experience with sophisticated, large-scale international
manufacturing operations

International Experience

Living and working in various regions, in the US, the EU and/or Asia, and/or experience with businesses with substantial
international operations

Human Capital

Experience with human-resources management and culture
development in large, international organizations, in particularin overseeing succession planning, talent development andexecutive-compensation programs

Risk Management

Experience in assessing and managing enterprise risks

IT and Cybersecurity

Experience in understanding and managing information
technology and cybersecurity threats

Corporate Governance

Knowledge of corporate-governance issues applicable tocompanies registered with the US Securities and Exchange
Commission (SEC) and listed on the Nasdaq and experience
within international regulatory affairs or legal sectors

ESG Expertise

Experience in understanding and addressing strategic
environmental, social and governance issues

ē Product Stewardshipē Environment, Healthand Safetyē Team Members
ē Social Responsibility
ē Governance
ē
ē
ē
ē
ē
ē
ē
ē

Overview

Board of Directors
EthicsAnti-Bribery and Corruption
Privacy

Cybersecurity
TaxationEnterprise Risk
Management

ē Business Resilienceē Data and Indicesē Appendicesē Forward-Looking

Statements

134

NXP Corporate Sustainability Report

Board Committees

The Board delegates certain oversight functions to
Board Committees, which meet regularly and reportback to the Board. The three standing committees of theBoard are the Audit Committee, the Human Resources
and Compensation Committee and the Nominating,Governance and Sustainability Committee. The scopeand responsibilities of each committee are documented
in written charters, which can be viewed at our Board
Committees website.

ESG Board Oversight

For information on Board oversight on ESG matters, see
the Governance section of our Sustainability Strategy
chapter of this Report.

Governance: Ethics
2023 Ethics Reportingē Introduction
ē Sustainability Strategy
ē Our Businessē Product Stewardshipē Environment, Healthand Safety

133

Reports Received by the Ethics Committee

93%

Closed Reports

49%

Substantiated Reports

ē Team Members
ē Social Responsibility
ē Governance
ē
ē
ē
ē
ē
ē
ē
ē

Overview

Board of Directors

EthicsAnti-Bribery and Corruption
Privacy

Cybersecurity
TaxationEnterprise Risk
Management

ē Business Resilienceē Data and Indicesē Appendicesē Forward-Looking

Statements

135

NXP Corporate Sustainability Report

We aim to compete and operate in an ethical and lawful manner, comply withapplicable national and international laws and regulations, practice transparency,
maintain accurate business records and never engage in bribery or corruption or
insider trading. To protect our company’s reputation, we have policies related to theseand many other topics that we expect everyone who works for NXP to comply with.
In 2023, we published a standalone Anti-Bribery and Corruption Policy. Ethics andcompliance topics were also included in the fourth cycle of our Winning Culture Survey.
We had a favorability rating of 95% for a question related to NXP’s commitment on
ethical business practices, which was the highest scoring question on the survey. This
question scored more positively than the 75th percentile benchmark, composed ofcompanies operating in the technology sector.

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 frameworkand details the behavior expected from every team member, director, contractor oranyone else who works on behalf of NXP. The Code is available in 12 languages. The
English version can be found on www.nxp.com, while versions in other languages areavailable via the NXP intranet.
The Code addresses business and personal integrity, use of company assets,
employment at NXP and external activities, and provides guidance on reporting
potential violations. The Code was last revised in 2021. To incorporate the Code into
our way of working, we train our team members on the principles of the Code.

Ethics Training

In November 2023, the annual online Code of Conduct training was rolled out toour team members, including employees, contractors and temporary workers. The
training was offered in 11 languages and focused on NXP values and expectations as
set forth in the Code. The topics of the Code of Conduct training vary every year andthe 2023 training addressed several topics, including anti-bribery and anti-corruption,(sexual) harassment, conflicts of interest, security and protection of NXP (confidential)
information and speaking up in NXP. Team members were required to acknowledge
receipt and understanding of NXP's Anti-Bribery and Anti-Corruption (ABC) Policy
and the Code. The training includes a test that team members must pass to receive
certification.
NXP's goal is 100% completion by all enrolled individuals. In 2023, we achieved acompletion rate of 96%. Since the training window opened at end of Q4 and the due
date was at the end of December, 2023, we did not reach our 100% completion rate by
the end of 2023. In 2024, as we continue to work toward a 100% completion rate, we will
determine whether those who did not yet complete the training should be given an
exemption, due to long-term leave of absence because of sick leave, parental leave orother extenuating circumstances.

Allegations Approach and Management

We follow up on all reports and concerns relating to the Code of Conduct. All NXP
team members are welcome to submit a report or share concerns via one of thereporting channels, which include the NXP Ethics Committee, a local Ethics Liaison or,
if anonymity is desired, the Speak Up system administered by a third party. All reports
are assessed and discussed by the NXP Ethics Committee. After the initial assessmentof a report, an investigation team, with the right expertise and skill set to conduct
an in-depth investigation, is appointed. Based on the findings of the investigation,a decision is made about whether the report can be substantiated. If so, we takeappropriate follow-up actions. These actions can include education, organizationalchanges, counseling, reprimand, suspension and/or termination, depending on thenature and severity of the finding and the party’s willingness and ability to rectify theissue. While it is difficult to set a fixed timetable for resolution, since complaints vary inscale and complexity, most can be dealt with in under two months.

Governance: Ethics
ē Sustainability Strategy
ē Our Businessē Product Stewardshipē Environment, Healthand Safety

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 leadersfrom Legal, Internal Audit, Human Resources and Sustainability, is chaired by NXP's
Chief Ethics Officer and supported by a secretary.
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 theGeneral Counsel, the Chief Financial Officer, the Chief Human Resources Officer
and the Audit Committee of the Board regarding the number, type, materiality
and follow-up of the allegations and investigations that have been received.

ē Team Members

Number of Reports Received by the Ethics Committee

Number of Reports Received by the Ethics Committee

ē Social Responsibility150

ē Governance
Overview

Board of Directors

EthicsAnti-Bribery and Corruption
Privacy

Cybersecurity
TaxationEnterprise Risk
Management

ē Business Resilienceē Data and Indicesē Appendicesē Forward-Looking

Statements

136

NXP Corporate Sustainability Report

125
Number of Reports

ē
ē
ē
ē
ē
ē
ē
ē

6
133
121
97

100
74

75
50

5

121

4

76

3

52

2

25
0

1

2017

2018

2019

Number of Reports

2020

2021

2022

2023

Reports per 1,000 Team Members

The most-reported types of violations over 2023 included violations of internal policies,
theft and harassment.

0

SpeakUpWe are committed to promoting a culture of integrityand encourage our team members, as well as externalbusiness partners and third parties, to express any
concerns they have related to potential violations of
the Code, NXP policies or the law.

0800–1693502
www.speakupfeedback.eu/web/fust8ma/gb
access code: 07526

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. Concernsand grievances can also be submitted using the phone or web option of
SpeakUp, which is 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.
Reports per 1,000 Team Members

ē Introduction

Our SpeakUp reporting channels are communicated to all team members
through the Code, dedicated intranet web pages, trainings, our website andvarious other means. SpeakUp can be used by any employee, contractor,
business partner, stakeholder or other third parties.
All concerns raised are taken seriously and investigated. We apply the highest
standards of confidentiality in the handling of all reports received. We have astrict 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 importanceof speaking up and the available reporting channels. Also, in 2023, our reportinglevels were actively used throughout the organization, indicating that ourreporting channels are effective.

Governance: Anti-Bribery and Corruption
ē Introduction
ē Sustainability Strategy
ē Our Businessē Product Stewardshipē Environment, Healthand Safetyē Team Members
ē Social Responsibility
ē Governance
ē
ē
ē
ē
ē
ē
ē
ē

Overview

Board of Directors
EthicsAnti-Bribery andAnti-Bribery
andCorruption
Corruption
Privacy

Cybersecurity
TaxationEnterprise Risk
Management

ē Business Resilienceē Data and Indicesē Appendicesē Forward-Looking

Statements

137

NXP Corporate Sustainability Report

NXP values integrity, transparency and professionalism when dealing with customers,
suppliers, government officials and other third parties. It is our policy to compete fairly
and engage in business practices that comply with the anti-bribery and corruption
laws and regulations that apply to NXP, such as the Foreign Corrupt Practices Act(FCPA) in the United States and the Anti-Bribery Act 2010 in the United Kingdom (UKBA).
We take a zero-tolerance approach to any form of bribery and corruption, regardlessof the identity or position of the originator or recipient of the bribe. Bribes, otherimproper or unauthorized payments and acts that create the appearance ofpromising, offering, giving or authorizing such payments are not tolerated. To further
enhance the understanding of NXP's Anti-Bribery and Anti-Corruption requirements,
NXP has a standalone Anti-Bribery and Anti-Corruption (ABC) Policy. The ABC Policy
was deployed in 2023 and applies to all of our team members, directors, officers andorganizations, as well as to any third parties acting on behalf of NXP, and applies to alltransactions in any country where we operate and do (or seek to do) business. Any
violation is deemed a serious violation of the ABC Policy and our Code and will lead tosevere disciplinary action.

Governance: Privacy
ē Introduction
ē Sustainability Strategy
ē Our Businessē Product Stewardshipē Environment, Healthand Safetyē Team Members
ē Social Responsibility
ē Governance
ē
ē
ē
ē
ē
ē
ē
ē

Overview

Board of Directors
EthicsAnti-Bribery and Corruption

Privacy

Cybersecurity
TaxationEnterprise Risk
Management

ē Business Resilienceē Data and Indicesē Appendicesē Forward-Looking

Statements

138

NXP Corporate Sustainability Report

NXP recognizes the importance of protecting andsafeguarding personal data in today’s connected world.
We respect the privacy of everyone involved in doing
business for or with NXP and ensure personal datais handled in a fair, lawful and ethical way. We takeappropriate steps to protect the personal data in ourpossession. We take the principles of data protection,such as data minimization and purpose limitation,
seriously.
Data breaches are unfortunate and can have asignificant impact on individuals and corporations alike.
Proper data management makes data breaches easier
to detect and helps with damage control. NXP's policies
require that we promptly record and respond to data
breaches. Where required by law, we also report data
breaches to the relevant authorities.

Privacy Policies

NXP has a Privacy Policy and a Privacy Statement. The
Privacy Policy provides guidelines and outlines theminimum requirements on privacy and data protection
for NXP. The Privacy Statement describes the types of
personal data we process and why. It outlines the rights
individuals have regarding personal data and how
those rights can be exercised, and describes how we
respond to inquiries relating to data, including requests
to delete personal information. Other guidelines relating
to privacy include our Data-Breach Procedure andData-Retention Policy.

Third Parties and Data Transfers

We take measures to ensure that third parties
who process personal data on our behalf do so inaccordance with applicable laws and regulations.
We conclude Data-Processing Agreements and, inthe case of international data transfers, ensure datatransfer mechanisms, such as the modernized standard
contractual clause, are in place.

GovernanceWe run a dedicated Privacy-and-Data-Protection
Program to ensure we stay compliant with applicableprivacy laws and regulations. We record the activitiesof business processes that handle personal data.
If required, we perform impact assessments fordata protection and privacy. We track regulatory
developments for privacy and data worldwide,
including laws and regulations in other data-related
domains, such as the Artificial Intelligence Act. We havedesignated Privacy Champions, located throughout theorganization, who align with the Privacy Team regarding
the privacy matters that occur in their department.

Training

Privacy Champions are trained on general privacy
topics and meet virtually on a monthly basis to shareknowledge and discuss the latest developments
regarding privacy and data protection. There is alsoa general privacy training available for all NXP teammembers. Departments that deal with aspects of dataprotection and privacy in their day-to-day activities
receive additional training from the Privacy Team.

Governance: Cybersecurity
ē Introduction
ē Sustainability Strategy
ē Our Businessē Product Stewardshipē Environment, Healthand Safetyē Team Members
ē Social Responsibility
ē Governance
ē
ē
ē
ē
ē
ē
ē
ē

Overview

Board of Directors
EthicsAnti-Bribery and Corruption
Privacy

As a leading technology company, we are committed to helping strengthen internet
security and to implementing measures that protect our company against illicit
activities, including cyberattacks and malware.
NXP’s cybersecurity initiatives focus on strengthening our Core IT infrastructureand services against external threats, securing our manufacturing operations fromcompromise, limiting damage through processes and controls and protecting ourintellectual property.

GovernanceMonitoring

NXP’s Audit Committee has oversight responsibility for reviewing the effectiveness of
NXP’s governance and management of Information Technology (IT) risks, including
those relating to business continuity, cybersecurity, intellectual-property protection
and regulatory compliance. NXP senior leadership regularly briefs the Audit Committee
on cybersecurity matters and briefs the full Board on these issues at least annually.

ē Data and Indices

Certifications

Enterprise Risk

ē Appendicesē Forward-Looking

Statements

NXP Corporate Sustainability Report

Training on cybersecurity-related areas is an ongoing exercise. The NXP IT Service
Desk, along with all NXP team members, is trained to identify cybersecurity issues andto escalate them to their correct owners. We deliver periodic cybersecurity updates,
awareness materials and a catalog of trainings to cover different user needs.

On a day-to-day basis, NXP identifies vulnerabilities, breach attempts and possible
criminal activity by third parties. These activities are covered by our process forcybersecurity risk management. At the time of this reporting, we have experienced nocybersecurity incidents that resulted in a material adverse effect to our business oroperations.

ē Business Resilience

Taxation

Training

Safeguarding our confidential information and ensuring compliance with legal
obligations benefits all of NXP. To help our employees understand the important role
they play in protecting confidential information, we released the NXP eMedia Policy
and Monitoring Notice in 2022. The eMedia Policy details the responsibilities we all
have to protect NXP information and systems. The eMedia Policy includes a Monitoring
Notice, which informs all team members that their activities are monitored whenusing NXP eMedia. The eMedia Policy is available in 12 languages and a mandatory
online training was provided, in 2022, to all users who have access to NXP information
systems.

NXP’s program for IT Risk Management is a component of NXP’s overall process forEnterprise Risk Management. NXP’s Chief Information Security Officer manages thecybersecurity risks identified in the Enterprise Risk Management process. This includes
performing risk assessments, prioritizing the most likely and impactful risk elements
and recommending appropriate measures to mitigate the risk.

Cybersecurity
Cybersecurity

Management

139

Approach

NXP is certified and externally audited to ISO/IEC 27001 withcertain additional certifications, such as Common Criteria
Evaluation Assurance Level (CC EAL) 6+, Payment Card Industry
Data Security Standard (PCI DSS) and Groupe Speciale Mobile
Association (GSMA) Security, for dedicated functions. We also
maintain insurance coverage for cybersecurity risk.

We use a multi-layer approach to identify and mitigate information security risks. On
a tactical level, we maintain a 24x7 Security Operating Center that actively monitors
for cybersecurity threats, identifies them and initiates the appropriate mitigation
processes. The Security Operating Center reports to the Chief Information Security
Officer. When handling high-severity security incidents, we create a Computer Security
Incident Response Team. If a potential threat or risk is elevated, we establish a task
force with representatives from Security, IT, Communications, Legal and the relevantbusiness line(s) to lead mitigation activities.

Governance: Taxation
ē Introduction

Taxation Standards

ē Sustainability Strategy

We comply with all applicable tax laws

ē Our Businessē Product Stewardshipē Environment, Healthand Safety

We align our profit allocation with international tax principles

ē Team Members
ē Social Responsibility
ē Governance
ē
ē
ē
ē
ē
ē
ē
ē

We use tax incentives to directly support innovation and R&D

file-invoice-dollar

We have zero tolerance for tax evasion

Times-Circle

We have no active presence in countries on the EU’s listof non-cooperative jurisdictions

DOOR-OPEN

We are open and transparent with tax authorities

Overview

Board of Directors
EthicsAnti-Bribery and Corruption
Privacy

Cybersecurity

Taxation
TaxationEnterprise Risk
Management

ē Business Resilienceē Data and Indicesē Appendicesē Forward-Looking

Statements

140

microscope

NXP Corporate Sustainability Report

Since our founding as a company, NXP has applied a tax strategy that is sustainable,transparent and fully aligned with well-known and widely recognized international tax
principles. In keeping with this approach, this section on taxation describes the same
policies as in prior years.
We believe sustainability is about “doing the right thing” and that’s why we are a
responsible, accountable taxpayer. At the same time, transparency helps us offer
insights for a better-informed public debate and invites public examination. The result
is an approach to taxes that helps us contribute to the overall welfare of society.
To further enhance sustainability, we disclose how we manage our tax obligations inthis section and summarize NXP’s quantitative tax effects in NXP's financial disclosures.
Moreover, since NXP is committed to tax transparency, we will soon disclose countryspecific tax information.

Governance: Taxation
ē Introduction
ē Sustainability Strategy
ē Our Businessē Product Stewardshipē Environment, Healthand Safetyē Team Members
ē Social Responsibility
ē Governance
ē
ē
ē
ē
ē
ē
ē
ē

Overview

Board of Directors
EthicsAnti-Bribery and Corruption
Privacy

Cybersecurity

Taxation
TaxationEnterprise Risk
Management

ē Business Resilienceē Data and Indicesē Appendicesē Forward-Looking

Approach to Tax

Considering our product-development framework, NXP leverages the available tax
incentives and tax regulations in the various jurisdictions where we operate. The
most important tax incentives NXP is eligible for are the ones that drive and promote
innovation and R&D activities. For example, as a Dutch multinational focused on R&D,
NXP qualifies for the innovation box regime, provided by Dutch tax law, which reduces
the nominal tax rate for qualified income associated with R&D from 25.8% to 9%.
The effective Dutch tax rate for NXP is above 15%.

NXP aims to support stable, transparent and predictable tax systems that incentivize
long-term investments and economic growth. NXP is committed to complying withthe letter, the intent and the spirit of the applicable tax laws of the jurisdictions where
we operate.

Approach to Transfer Pricing

NXP’s tax strategy – that is, the way we approach, manage and assess the risk oftaxation – is grounded in the corporate objective to act as a socially responsible
company. The NXP Code of Conduct serves as an ethical framework for taxes and iseffectively embedded within the tax strategy and across the tax organization. Hence,
NXP’s tax strategy also governs NXP’s relationships with employees, customers andcontractors.

NXP’s tax structures are based on global standards and frameworks supported by theOrganization for Economic Co-operation and Development (OECD). We believe that
operating within this framework creates a constant contribution to the advancementof the UN Sustainable Development Goals (SDGs). Moreover, our approach to tax also
supports NXP’s sustainable development strategies.
NXP invests in R&D, manufacturing and go-to-market activities using a crossfunctional model, leveraged by multiple organizations globally. The resulting supply
chain and product development form the foundation of NXP’s structure for transfer
pricing.

As a multinational enterprise, NXP operates in many different tax jurisdictions andfrequently deals with intragroup transfers that involve cross-border payments within
the group. To ensure that all intragroup parties involved get a fair remuneration for theservices they render, internal cross-border transactions use the same pricing structure
as transfers occurring between independent parties.
Given the increased importance of transfer pricing as a method for reaching aninternationally accepted taxable profit allocation between jurisdictions, NXP reviews
its transfer pricing strategy yearly to make sure it is aligned with the value creationof its commercial activities. Furthermore, NXP benchmarks and compares intragrouptransfer prices to ensure that we use what's known as a policy of "arm’s length transfer
pricing" which means the price is comparable to what it would have been if theparties weren't related.
NXP is fully committed to the Action Plan promoted by the OECD to prevent Base
Erosion and Profit Shifting (BEPS). To monitor current and emerging trends in theinternational tax field, regular meetings are held within the tax department to ensure
we act appropriately on them.
NXP does not have an active presence in black-listed jurisdictions1 as defined by the
EU and does not use artificial structures to achieve tax advantages or minimize tax
liabilities. In this sense, all NXP entities are resident for tax purposes in the jurisdictions
where they perform their business and generate profits. After a business acquisition,
NXP’s Tax Team ensures that the acquired structure will incorporate NXP’s Transfer
Pricing Policy.

Statements

1

141

NXP Corporate Sustainability Report

NXP Semiconductors Moscow is inactive as from mid-2022. NXP expects to formally liquidate its Russian
entity in 2024.

Governance: Taxation
ē Introduction
ē Sustainability Strategy
ē Our Businessē Product Stewardshipē Environment, Healthand Safetyē Team Members
ē Social Responsibility

The NXP tax department is a centralized organization that manages both regional andfunctional requirements. The organization regularly engages with external tax advisors
and/or local tax authorities to provide assurances that our tax obligations are properly,
effectively and correctly handled, and disclosed in the annual and quarterly reports.
Furthermore, fact-based tax accounting and policy advice is available in a timely
manner throughout NXP.

Risk Assessment and Mitigation

Board of Directors
Anti-Bribery and Corruption

NXP's 2023 Tax Summary

Cybersecurity• NXP-generated income before taxes was $3,352 million ($1,398 million taxable
in the Netherlands and $1,954 million foreign tax base).

Overview
EthicsPrivacy

Taxation
TaxationEnterprise Risk
Management

ē Business Resilience• NXP’s worldwide income-tax expense was $523 million.

ē Data and Indices• NXP’s effective tax rate was 16%.

ē Appendices• Netherlands tax incentives amounted to $111 million and foreign tax incentives
received were $251 million.

ē Forward-Looking

Statements

142

NXP reviews and approves tax plans and targets annually, consistent with industrywide, best-in-class control and governance frameworks. Within NXP, the tax
department is led by a Senior Vice President, reporting directly to the Chief Financial
Officer. The Chief Financial Officer is responsible for updating the Audit Committeeof the Board of Directors on a regular basis, with support from the tax-department
leadership.

NXP has a low appetite for tax risk. Nevertheless, NXP operates on a global basis
and is potentially exposed to numerous risks, including those related to taxation. To
ensure the identification and resolution of tax issues in a timely fashion, NXP’s global
framework operates through regional and functional dimensions.

ē Governance
ē
ē
ē
ē
ē
ē
ē
ē

Tax Governance

NXP Corporate Sustainability Report• NXP benefited from $80 million in country-specific R&D tax credits as well as$43 million in direct R&D grants from different jurisdictions.

The Tax Team continuously monitors the processes for tax accounting, tax complianceand reporting, to identify and manage potential risks. The Team documents every
stage of the process. When the Team identifies potential risks, it applies critical andprofessional reasoning on an issue-by-issue basis to balance the acceptable risk
limits as they relate to taxes. In addition, to support transparent financial reporting,
NXP follows Generally Accepted Accounting Principles (GAAP) and has implemented
a robust, effective and efficient tax-accounting control framework that assurescompliance with the US 2002 Sarbanes-Oxley Act.
Potential violations of NXP’s Tax Policy can be confidentially reported using various
reporting channels, such as management, an ethics liaison, the NXP Ethics Committee
or our SpeakUp line, a system hosted by an independent third party that facilitates
anonymous reporting via phone or web. A strict policy of non-retaliation is in force
to protect any team member who reports potential violations.

Engaging with Tax Authorities and Stakeholders

NXP is committed to open and transparent relationships with tax authorities, groundedin ethical integrity, collaboration and mutual respect. For all requests of information
or audits, we provide the required documentation in a timely manner. To fosterand maintain long-term relationships with tax authorities, NXP seeks to participate
in cooperative compliance programs available for large taxpayers. NXP currently
participates in such a program in the Netherlands and is considering participatingin similar programs elsewhere, such as in Singapore.
Furthermore, NXP seeks to engage constructively in national and international
dialogue with governments, tax authorities, international organizations, businessgroups and civil society to support the development of effective tax systems,
legislation and administration. As such, when any of these stakeholders asks for
feedback and insights, NXP shares its view as a multinational corporation and memberof the semiconductor industry. Furthermore, as a member of the European Business
Tax Forum (EBTF), NXP participates in the Total Tax Contribution, a study of the largest
companies in Europe whose purpose is to raise awareness and aid in understanding
the contribution of large businesses in the public economy.

Governance: Enterprise Risk Management
ē Introduction
ē Sustainability Strategy
ē Our Businessē Product Stewardshipē Environment, Healthand Safetyē Team Members
ē Social Responsibility
ē Governance
ē
ē
ē
ē
ē
ē
ē
ē

Overview

Board of Directors
EthicsOur management is directly responsible for executing our process for Enterprise Risk
Management (ERM), which helps us promptly identify, evaluate, prioritize, respond toand manage key risks impacting NXP's strategic objectives.
The objectives of our ERM process are as follows:• Identify our key risks in a timely manner, based upon quantitative and qualitative
factors.
• Mitigate risk and keep risk impact at acceptable levels, particularly those risks that
could result in a strategic impact event.
• Ensure there is an effective risk-management framework in place which covers our
key risks and is supported by risk-monitoring mechanisms.
• Prioritize and align risk-management efforts, to use resources effectively.
• Ensure risk-management governance, including quarterly monitoring, reportingand evaluation.
Our procedures include plans for reasonable coverage of potential key risks but,
despite the thoroughness of the process, unforeseen events that impact thestrategy may occur.

The Board of Directors oversees NXP's processes and procedures related to risk
assessment and risk management, and reviews NXP's key risks. The NXP Management
Team oversees, identifies and manages the key risks NXP faces in executing its
strategy, defines risk appetite and manages risks accordingly.
The ERM function helps NXP management make risk management more efficient andeffective, by providing and maintaining a risk-management framework as well as
a risk-monitoring mechanism and by facilitating execution of the ERM process. The
framework includes a yearly risk identification and assessment along with quarterly
monitoring, reporting and evaluation.

Managing Risk According to our Risk Appetite

We believe that our appetite for risk is consistent with that of our semiconductor
peers and is a reflection of the semiconductor industry as a whole. Our risk appetite
is different for different risks and therefore the level of mitigation varies. For mitigationof the operational, financial disclosure and compliance risks, we rely on our frameworkof business controls, process and authorizations.

Anti-Bribery and Corruption
Privacy

Cybersecurity
TaxationEnterprise Risk
Enterprise
Risk

Key ERM Activities

Management

ē Business Resilienceē Data and Indicesē Appendicesē Forward-Looking

Statements

143

Risk Management Governance

NXP Corporate Sustainability Report







Identify andAssess Risks

Respondto RiskConduct
Management
Assurance

MonitorCommunicate

EvaluateGovernance: Business Resilienceē Introduction
ē Sustainability Strategy
ē Our Businessē Product Stewardshipē Environment, Healthand Safetyē Team Members
ē Social Responsibility
ē Governance
ē
ē
ē
ē
ē
ē
ē
ē

Overview

Board of Directors
Ethics

We take prudent actions to prevent and prepare forissues that may threaten the welfare of our teammembers, our customers, our communities and ourinvestors. We cultivate a resilient culture througha Management System that is inclusive of all NXP
businesses, activities and manufacturing sites andis modeled on the International Organization forStandardization's ISO 22301 and ISO 22316, as wellas the International Automotive Task Force's IATF
16949 Section 6.1.2.3.
Business Resilience Teams are established at the
global and local levels to anticipate and prevent
issues, develop proactive plans and systems andcontinuously improve our operations. In the event ofa major issue, local and/or global Crisis Management
Teams are activated, as needed. NXP is committed toproviding timely and accurate information to affectedstakeholders. For a detailed overview of NXP's BusinessResilience Program, see our Global Business Resilience
and Crisis Management Overview.

Anticipate

AssessArrange
5A

Achieve

Act

Teams

The global and local Business Resilience Teams consistof representatives from various business functions
and organizations. These Teams focus on driving
collaboration, alignment and resilience expertise acrossfunctions, levels and locations, so we can accelerate
NXP's ability to thrive and grow stronger. The primary
mission for these Teams is to maximize opportunities
and minimize risks. The Teams are also responsible
for strategic, tactical and operational decisions while
implementing their specific business-resilience plans.

Global and local Crisis Management Teams also
consist of representatives from various business
functions and organizations, as needed. These teams
focus on responding to issues with the potential forvery high risk. The executive-level Steering Committee
receives reports on resilience and crisis situations andprovides strategic and tactical direction. The executivelevel Steering Committee includes the Chief Operations
and Manufacturing Officer, Chief Technology Officer,
General Counsel and Chief Sustainability Officer, Chief
Strategy Officer, General Manager of Automotive
Processing, General Manager of Secure Connected
Edge and Chief Human Resources Officer. During asituation, all groups interact with each other and, if
necessary, escalate issues to the global and executive
teams for additional assistance.

Anti-Bribery and Corruption
Privacy

Cybersecurity

Product Supply Continuity
Product Delivery

TaxationEnterprise Risk
Management

ē Business Resilience
Resilienceē Data and Indicesē AppendicesProtection of Information
IT Systems

Examples of Key Planning Areas

ē Forward-Looking

Statements

Site Assets Risk Management
Sites, Utilities and Natural Hazards
144

NXP Corporate Sustainability Report

Procurement Continuity
Material Delivery

Governance: Business Resilienceē Introduction
ē Sustainability Strategy
ē Our Businessē Product Stewardshipē Environment, Healthand Safetyē Team Members
ē Social Responsibility
ē Governance
ē
ē
ē
ē
ē
ē
ē
ē

Overview

Board of Directors
EthicsAnti-Bribery and Corruption
Privacy

Cybersecurity
TaxationEnterprise Risk
Management

ē Business Resilience
Resilienceē Data and Indicesē Appendicesē Forward-Looking

Statements

145

NXP Corporate Sustainability Report

Business-Impact and Priority Assessments

When assessing how a situation may positively or negatively affect the business, we
focus on likelihood and impact. Each attribute receives a numerical score, assigned
by Business Resilience or Crisis Team members, or from insurance or other external
analytics. Assessments are reviewed at least annually. Each Team defines, executesand measures the results of action plans in order to minimize the risk or maximize
the opportunity.

Plans

Teams document resilience and crisis plans, including regular training and exercises.
The plans build awareness and spread knowledge about how to handle risks andopportunities. Training covers key roles and responsibilities, action protocols andhow to handle site-specific scenarios.
We conduct risk exercises, at least annually, to test the effectiveness of plans for awide range of potential disruptions. This includes disruptions caused by events suchas equipment failures, externally provided products, processes and services, natural
disasters, fires, utilities, labor shortages and IT issues and cyber-attacks.

Notification

We utilize multiple internal and external alert systems to notify us if there are incidents
at or near our sites so responses can begin quickly at the local, regional or global
level. We also use a geographic information system that includes the latitudes andlongitudes of our suppliers so we can identify incidents that may affect them.
Teams are notified whenever events happen and this immediately triggers anassessment and action-planning process. If the event may impact our supply orbusiness continuity, we take immediate mitigation actions. Proactive and timely
communication with our customers is a key part of this process.

Geopolitics and Global Supply Chains

In 2023, NXP continued to monitor developments and impacts related to geopolitics
and supply chains. We closely manage our strategy to ensure our procurement andproduct-supply operations are optimized for our business and our customers' needs,
both in the short- and long-term.

Israel-Hamas Conflict

Our Crisis Management Teams worked to anticipate and respond to risks related
to the 2023 conflict between Israel and Hamas. First, we worked to ensure the safetyof team members in the area. Then we confirmed contingency plans for business
operations. We also evaluated risks to our supply chain. NXP took proactive steps
to avoid or minimize the potential for disruptions from our suppliers and to ourbusiness operations.

Data andIndicesGetting straight to the details

Data and Indices: ESG Performanceē Introduction
ē Sustainability Strategy
ē Our Business

NXP ESG Performance

Unit

2020

2021

2022

2023

Mainland China and Hong Kong

$ Millions

3,324

4,180

4,700

4,366

APAC (excluding Mainland China and Hong Kong)$ Millions

2,773

3,471

4,165

3,741

EMEA (Europe, the Middle East and Africa)$ Millions

1,538

2,036

2,582

3,096

Americas$ Millions

977

1,376

1,758

2,073

Total Revenue$ Millions

8,612

11,063

13,205

13,276

Automotive$ Millions

3,825

5,493

6,879

7,484

Industrial and Internet of Things (IoT)$ Millions

1,836

2,410

2,713

2,351

Mobile$ Millions

1,248

1,412

1,607

1,327

Communications Infrastructure and Other$ Millions

1,703

1,748

2,006

2,114

$ Millions

8,612

11,063

13,205

13,276Percentage of ISO 14001-Certified Manufacturing Sites

%

100%

100%

100%

100%

Number of ISO 14001-Certified Manufacturing Sites

#

9

9

9

9

Number of Spills

#

0

0

0

0

Environmental Fines

#

0

0

1

11

Yes/No

Yes

Yes

Yes

Yes

Revenue
Revenue by Countryē Product Stewardshipē Environment, Healthand Safetyē Team Members
ē Social Responsibility

Revenue by End Market (Unaudited)ē Governanceē Data and Indices
ē
ē
ē
ē
ē

ESG Performance

Scope 1 Chemicals List
GRI Index

SASB Index

Total Revenue

TCFD Index

ē Appendices

Environment

ē Forward-Looking

Overview

Statements

Energy-Efficiency Policy
1147

NXP Corporate Sustainability Report

We take Notices of Violations (NOVs) seriously. We work quickly to identify corrective actions and take steps to minimize the chance of reoccurrence. In 2023, we received one NOV for a minor infraction resulting in a fine less than $1,000.
We resolved the infraction quickly, and otherwise maintained an exceptional compliance record.

Data and Indices: ESG Performanceē Introduction
ē Sustainability Strategy
ē Our Businessē Product Stewardshipē Environment, Healthand Safetyē Team Members
ē Social Responsibility
ē Governanceē Data and Indices
ē
ē
ē
ē
ē

ESG Performance

Scope 1 Chemicals List
GRI Index

SASB Index

TCFD Index

ē Appendicesē Forward-Looking

Statements

NXP ESG Performance

Unit

2020

2021

2022

2023

Emissions-Reduction Initiatives

Yes/No

Yes

Yes

Yes

Yes

Environmental Supply-Chain Management

Yes/No

Yes

Yes

Yes

Yes

Environmental Quality-Management Policy

Yes/No

Yes

Yes

Yes

Yes

Sustainable Packaging

Yes/No

Yes

Yes

Yes

Yes

Waste-Reduction Policy

Yes/No

Yes

Yes

Yes

Yes

Water Policy

Yes/No

Yes

Yes

Yes

Yes

Biodiversity Policy

Yes/No

No

No

No

Yes

Climate-Change Policy

Yes/No

Yes

Yes

Yes

Yes

Climate-Change Opportunities Discussed

Yes/No

Yes

Yes

Yes

Yes

Risks of Climate Change Discussed

Yes/No

Yes

Yes

Yes

Yes

tCO2e

982,123

1,180,209

1,169,506

897,536tCO2e/m2

17.8

17.6

15.9

15.6

tCO2e/$ Million

114

107

89

68

19,722,642

12,754,590

Emissions
Total Scope 1 and 2 (Market-Based) Emissions
Normalized Scope 1 and 2 (Market-Based) Emissions
Scope 1 and 2 (Market-Based) Emissions Intensity

Total Scope 1, 2 (Market-Based) and 3 Emissions

tCO2e

Scope 1 Emissions

148

NXP Corporate Sustainability ReportPFC Emissions

tCO2e

217,326

346,299

400,261

282,709

HTF Emissions

tCO2e82,100104,51062,49926,808

Fossil-Fuel Emissions

tCO2e41,81944,22946,06845,080Data and Indices: ESG Performanceē Introduction

NXP ESG Performanceē Sustainability Strategy
ē Our Business

Unit

2020

2021

2022

2023

N2O Emissions

tCO2e

14,49819,40020,503

15,569Other Scope 1 Emissions

tCO2e

720

777

1,102

8

tCO2e

356,462515,215

530,433

370,174

Indirect Emissions from Manufacturing Sites

tCO2e604,013642,640

613,620506,228

Indirect Emissions from Non-Manufacturing Sites

tCO2e

21,64822,35425,453

21,134tCO2e625,661

664,994

639,073

527,362

Total Scope 1 Emissions

ē Product Stewardshipē Environment, Healthand Safety

Scope 2 (Market-Based) Emissions

ē Team Members
ē Social Responsibility
ē GovernanceTotal Scope 2 (Market-Based) Emissions
Scope 3 Emissions2Category 1 - Purchased Goods and Services

tCO2e3,429,662

3,291,179

Category 2 - Capital Goods

tCO2e

320,199

266,665

Scope 1 Chemicals List

Category 3 - Fuel- and Energy-Related Activities

tCO2e

93,64589,852

SASB Index

Category 4 - Upstream Transportation and Distribution

tCO2e

13,154

10,313

ē Appendices

Category 5 - Waste Generated in Operations

tCO2e

10,945

9,544

Category 6 - Business Travel

tCO2e

9,092

12,980ē Forward-Looking

Category 7 - Employee Commuting

tCO2e

63,07964,805

Category 8 - Upstream Leased Assets

tCO2e

6,441

6,768

Category 9 - Downstream Transportation and Distribution

tCO2e

13,306

10,583Category 10 - Processing of Sold Products

tCO2e

79,50656,351Category 11 - Use of Sold Products

tCO2e

14,510,934

8,035,180

Category 12 - End-of-life Treatment of Sold Products

tCO2e

2,524

2,160

ē Data and Indices
ē
ē
ē
ē
ē

ESG Performance
GRI Index

TCFD Index

Statements

2

149

NXP Corporate Sustainability Report

In previous years, we reported on only two of 15 Scope 3 categories. We now include all 15 categories. For more about our updated reporting, see the Emissions section of the Environment, Health and Safety chapter of this Report.

Data and Indices: ESG Performanceē Introduction

NXP ESG Performanceē Sustainability Strategy
ē Our Businessē Product Stewardshipē Environment, Healthand Safety

Unit

2020

2021

2022

2023

Category 13 - Downstream Leased Assets

tCO2e

649

674

Category 14 - Franchises

tCO2e

Not Applicable

Not Applicable

Category 15 - Investments

tCO2e

Not Applicable

Not ApplicabletCO2e

18,553,136

11,857,054

Total Scope 3 Emissions
Non-Greenhouse Gas (GHG) Emissions

ē Team Members
ē Social Responsibility

Total NOx Emissionskg

37,22566,562

34,482

33,844

Total SOx Emissions

kg

783

1,901

633

768

Total VOC Emissionskg

112,188

185,409

129,988

83,427

ē Governanceē Data and Indices
ē
ē
ē
ē
ē

ESG Performance

Energy3
Direct Energy Use4

Scope 1 Chemicals List

Diesel-Fuel Consumption

GJ

2,351

5,987

2,916

2,182

SASB Index

Natural-Gas Consumption

GJ

717,517756,588783,985776,793

Other Fossil-Fuel Consumption

GJ

32,87931,43942,852

32,977

Total Direct Energy Consumption

GJ

752,747

794,014829,753

811,952

Wafer Fabs Electricity Consumption

kWh944,090,629

952,005,983

978,844,757

965,861,572

Assembly and Test Electricity Consumption

kWh540,215,334

608,430,370

669,542,798

669,858,479

GRI Index

TCFD Index

ē Appendicesē Forward-Looking

Statements

Indirect Energy/Electricity Consumption5
By Manufacturing Site TypeNXP does not sell energy in the form of electricity, heating, cooling or steam. Therefore, we have 0 MWh of sold energy.
Direct energy use is included in our Scope 1 values and includes data from manufacturing sites only.
5
Indirect energy use is included in our Scope 2 values.
3

4

150

NXP Corporate Sustainability ReportData and Indices: ESG Performanceē Introduction

NXP ESG Performance

Unit

2020

2021

2022

2023

Total Non-Renewable Electricity Consumption

kWh1,016,135,214

1,080,042,298

1,066,090,528

993,273,023

Total Renewable Electricity Consumption

kWh468,170,749

480,394,055

582,297,027

642,447,028

Total Manufacturing Indirect Energy Use/Electricity Consumption

kWh1,484,305,963

1,560,436,353

1,648,387,555

1,635,720,051

Total Non-Manufacturing Indirect Energy Use/Electricity Consumption

kWh49,951,895

49,975,324

53,643,676

48,193,874

Electricity

GJ

5,343,497

5,617,569

5,936,364

5,888,593

Heating

GJ

0

0

0

0

Cooling

GJ

0

0

0

0

Steam

GJ

0

0

0

0

Fuel

GJ

752,747

794,014829,753

811,952

Renewable Energy Consumption

GJ

1,685,421

1,729,418

2,097,035

2,314,217

Non-Renewable Energy Consumption

GJ

4,410,823

4,682,165

4,669,082

4,386,328

GJ

6,096,244

6,411,583

6,766,117

6,700,545

Renewable Electricity Consumption

kWh468,170,749

480,394,055

582,297,027

642,447,028

Percentage of Renewable Electricity8

%

32%

31%

35%

39%

By Manufacturing Electricity Energy Sourcesē Sustainability Strategy
ē Our Businessē Product Stewardshipē Environment, Healthand Safetyē Team Members
ē Social Responsibility

Energy Consumption6
By Consumption Typeē Governanceē Data and Indices
ē
ē
ē
ē
ē

ESG Performance

Scope 1 Chemicals List
GRI Index

SASB Index

By Renewables

TCFD Index

ē Appendicesē Forward-Looking

Statements

Total Energy Consumption
Renewable Energy and Electricity7
Renewable Electricity

This data includes manufacturing sites only.
This data includes manufacturing sites only.
8
We use our percentage of renewable electricity for our 2027 ESG goal.
6
7

151

NXP Corporate Sustainability ReportData and Indices: ESG Performanceē Introduction
ē Sustainability Strategy

NXP ESG Performance

Unit

2020

2021

2022

2023

Renewable Energy Consumption

GJ

1,685,421

1,729,418

2,097,035

2,314,217

Percentage of Renewable Energy9

%

28%

27%

31%

35%

Surface Water

m3

0

0

0

0

Seawater

m3

0

0

0

0

Ground Water

m3

691,723

737,640

806,646

715,169

Produced Water

m3

0

0

0

0

Third-Party Water

m3

9,927,988

10,901,858

11,816,162

11,839,265

Total Water Withdrawal

m3

10,619,711

11,639,498

12,622,808

12,554,434

m3

3,869,577

3,657,987

m3/$ Million

0.00030.0003

Surface waterm3

966,746

825,603

Seawaterm3

0

0Ground Water

m3

0

0

Produced Water

m3

0

0

Third-Party Water

m3

7,808,289

8,070,844

Total Water Discharge

m3

8,753,231

8,896,447

Renewable Energyē Our Businessē Product Stewardshipē Environment, Healthand Safety

Water
Water Use at Manufacturing Sites

ē Team Members
ē Social Responsibility

Water Withdrawal

ē Governanceē Data and Indices
ē
ē
ē
ē
ē

ESG Performance

Scope 1 Chemicals List
GRI Index

SASB Index

Water Consumption

TCFD Index

Water Consumption Intensity

ē Appendicesē Forward-Looking

Statements

Water Discharge

9152

NXP Corporate Sustainability Report

This percentage includes direct and indirect energy usage.

Data and Indices: ESG Performanceē Introduction

Unit

2020

2021

2022

2023

Surface Water

m3

0

0

0

0

Seawater

m3

0

0

0

0

Ground Water

m3

0

0

0

0

Produced Water

m3

0

0

0

0

Third-Party Water

m3

2,964,003

3,374,373

3,494,938

3,553,191

Total Water Withdrawal

m3

2,964,003

3,374,373

3,494,938

3,553,191

Percentage of Withdrawal in Regions of Water Stress

%

28%

29%

28%

28%

Water Consumption in Regions of Water Stressm3

869,003

1,149,777

Percentage of Consumption in Regions of Water Stress

%

22%

31%

Scope 1 Chemicals List

Surface Water

m3

0

0

SASB Index

Seawaterm3

0

0Ground Water

m3

0

0

Produced Water

m3

0

0

Third-Party Water

m3

2,625,935

2,403,414

Total Water Discharge

m3

2,625,935

2,403,414

ē Sustainability Strategy

NXP ESG Performance
Water Use at Manufacturing Sites in Regions with Water Stress10

ē Our Businessē Product Stewardship

Water Withdrawal in Regions of
Water Stressē Environment, Healthand Safetyē Team Members
ē Social Responsibility
ē Governanceē Data and Indices
ē
ē
ē
ē
ē

ESG Performance
GRI Index

TCFD Index

Water Discharge in Regions of Water
Stressē Appendicesē Forward-Looking

Statements

10

153

NXP Corporate Sustainability Report

Regions of water stress are classified as such based on the High or Extremely High Baseline Water Stress categories using the World Resources Institute’s (WRI) Water Risk Atlas tool, Aqueduct.

Data and Indices: ESG Performanceē Introduction
ē Sustainability Strategy

NXP ESG Performance

Unit

2020

2021

2022

2023

m3

8,748,915

8,817,566

9,961,142

10,876,297

%

49%

48%

48%

51%

Total Regular Ongoing Waste

kg

16,503,773

19,415,128

23,005,443

22,658,127

Total One-Time Waste12kg

160,124

165,352

163,942

173,937

Total Waste

kg

16,663,897

19,580,480

23,169,385

22,832,064

Total E-Scrap Reclaim13kg

606,138

790,784

683,553

662,853

Wastewater Recycling
Total Wastewater Recyclingē Our Business

Percentage of Wastewater Recycling Rate11

ē Product Stewardshipē Environment, Healthand Safety

Wasteē Team Members
ē Social Responsibility
ē Governanceē Data and Indices
ē
ē
ē
ē
ē

Regular Hazardous and Non-Hazardous Waste		ESG Performance

Scope 1 Chemicals List
GRI Index

Total Hazardous Waste

kg

7,186,777

8,513,808

8,340,735

Total Non-Hazardous Waste

kg

12,305,068

14,586,129

14,317,392

Onsite Recycling

kg

0

0

0

Offsite Recyclingkg

3,856,402

5,539,209

5,548,889

kg

3,856,402

5,539,209

5,548,889

SASB Index

TCFD Index

Regular Waste Diverted from Disposal14

ē Appendices

Hazardous Waste

ē Forward-Looking

Statements

Total Diverted from Disposal

Our Wastewater Recycling and Water Recycling rates are the same value.
One-time waste accounted for less than 1% of total waste generation in 2023 and is not included in our normal
waste metrics and analysis unless otherwise indicated.
13
This data is collected on an annual basis, but is not aligned with the calendar year.
14
We currently do no report waste with preparation for reuse and other recovery operations.
11

12

154

NXP Corporate Sustainability ReportData and Indices: ESG Performanceē Introduction

NXP ESG Performance

2020

2021

2022

2023

Onsite Recycling

kg

0

0

0

Offsite Recyclingkg

9,507,521

12,315,919

12,234,903

kg

9,507,521

12,315,919

12,234,903

kg

13,433,503

17,918,599

17,873,792

Hazardous Waste Recycling Rate

%

54%

65%

67%

Non-Hazardous Waste Recycling Rate

%

77%

84%

85%

76%

83%

86%

ē Sustainability Strategy

Non-Hazardous Wasteē Our Business

Unit

Total Diverted from Disposal

ē Product Stewardshipē Environment, Health

Total Regular Waste Diverted from Disposalē Team Members

Recycling Rate (Regular Waste-Only)and Safety

ē Social Responsibility
ē Governanceē Data and Indices
ē
ē
ē
ē
ē

ESG Performance

Overall Waste Recycling Rate

Scope 1 Chemicals List
GRI Index

SASB Index

TCFD Index

Hazardous Waste

ē Forward-Looking

Statements

Offsite Incineration with Energy
Recoverykg

1,112,663

988,901

1,149,615

Offsite Incineration without Energy
Recoverykg

863,617537,330

535,428

Offsite Landfillingkg

1,354,095

1,448,368

1,106,803

Onsite Directed to Disposal

kg

0

0

0

kg

3,330,375

2,974,599

2,791,846

Total Directed to Disposal

15

NXP Corporate Sustainability Report

72%

Regular Waste Directed to Disposal15

ē Appendices155%

We currently do no report waste with other disposal operations.

Data and Indices: ESG Performanceē Introduction

NXP ESG Performance

Unit

2020

2021

2022

2023

ē Sustainability Strategy

Offsite Incineration with Energy
Recoverykg

349,680

197,012609,800

ē Our Business

Offsite Incineration without Energy
Recoverykg

270,553

320,260

86,463

Offsite Landfillingkg

2,177,314

1,752,938

1,386,226

Onsite Directed to Disposal

kg

0

0

0

kg

2,797,547

2,270,210

2,082,489

kg

6,127,922

5,244,809

4,874,335

ē Product Stewardship

Non-Hazardous Waste

ē Environment, Healthand Safety

Total Directed to Disposalē Team Members
ē Social Responsibility
ē Governance

Environmental Stewardship Product Portfolio
Percentage of RoHS-Compliant Products without Exemptions

%

93%

92%

93%

96%

Percentage of RoHS-Compliant Products with Exemptions

%

7%

6%

5%

3%

Scope 1 Chemicals List

Percentage of REACH-Compliant Products

%

93%

82%

79%

88%

SASB Index

Percentage of Halogen-Free Products

%

94%

94%

96%

97%

Percentage of Pb-Free and Halogen-Free Products

%

84%

89%

90%

93%

Equal-Opportunity Policy

Yes/No

Yes

Yes

Yes

Yes

Fair-Remuneration Policy

Yes/No

Yes

Yes

Yes

Yes

Team-Member Sustainability Training

Yes/No

Yes

Yes

Yes

Yes

Health-and-Safety Policy

Yes/No

Yes

Yes

Yes

Yes

ē Data and Indices
ē
ē
ē
ē
ē

Total Regular Waste Directed to Disposal

ESG Performance
GRI Index

TCFD Index

ē Appendicesē Forward-Looking

Statements

SocialOverview

156

NXP Corporate Sustainability ReportData and Indices: ESG Performanceē Introduction

NXP ESG Performanceē Sustainability Strategy
ē Our Businessē Product Stewardshipē Environment, Healthand Safetyē Team Members
ē Social Responsibility
ē Governanceē Data and Indices
ē
ē
ē
ē
ē

Unit

2020

2021

2022

2023

Percentage of ISO 45001-Certified Manufacturing Sites

%

100%

100%

100%

100%

Number of ISO 45001-Certified Manufacturing Sites

#

9

9

9

9

Human Rights Policy16

Yes/No

Yes

Yes

Yes

Yes

Policy Against Child Labor

Yes/No

Yes

Yes

Yes

Yes

UN Global Compact (UNGC)Signatory

Yes/No

Yes

Yes

Yes

Yes

Responsible Business Alliance (RBA) Full Member

Yes/No

Yes

Yes

Yes

Yes

Sustainable Development Goals (SDGs) Target Policy

Yes/No

Yes

Yes

Yes

Yes

Flexible Work Schedule and Location

Yes/No

Yes

Yes

Yes

Yes

Team-Member Engagement Survey

Yes/No

Yes

Yes

Yes

Yes

Public Policy Condemning Workplace Sexual Harassment

Yes/No

Yes

Yes

Yes

Yes

Frequency of Team-Member Sexual-Harassment Training

ESG Performance

Scope 1 Chemicals List
GRI Index

SASB Index

At least every
2 years, but insome cases
more frequently
subject toapplicable law

At least every
2 years, but insome cases
more frequently
subject toapplicable law

At least every
2 years, but insome cases
more frequently
subject toapplicable law

TCFD Index

ē Appendicesē Forward-Looking

Workforce Footprint17
Extended Workforce - Total

Statements

Employees
Joint Venture

16
17

157

Years

At least every
2 years, but insome cases
more frequently
subject toapplicable law

NXP Corporate Sustainability ReportHC

33,48036,22339,731

38,589HC

27,73029,86133,03732,738

%

83%

82%

83%

85%

HC

1,454

1,487

1,492

1,454

%

4%

4%

4%

4%

We published our first, standalone Human Rights Policy in 2022. Previously, human rights clauses were embedded within existing policies and commitments.
The sum of percentages may not add up to 100% due to rounding.

Data and Indices: ESG Performanceē Introduction
ē Sustainability Strategy

NXP ESG Performance

Unit

2020

2021

2022

2023

HC

4,296

4,875

5,202

4,397

%

13%

13%

13%

11%

Americas

%

19%

18%

18%

18%

APAC

%

60%

61%

61%

60%

EMEA

%

21%

20%

21%

22%

Americas

%

—%

—%

—%

—%

APAC

%

99%

100%

100%

100%

EMEA

%

1%

—%

—%

—%

Americas

%

20%

18%

15%

11%

APAC

%

53%

59%

60%

62%

EMEA

%

27%

23%

25%

27%

External Temp

%

33%

31%

30%

26%

Contractor

%

67%

69%

70%

74%

Americas

%

24%

22%

21%

21%

APAC

%

44%

46%

46%

46%

EMEA

%

32%

32%

32%

33%

Contingent Laborē Our Businessē Product Stewardshipē Environment, Healthand Safety

Employees

ē Team Members
ē Social Responsibility

Joint Ventureē Governanceē Data and Indices
ē
ē
ē
ē
ē

Contingent Labor

ESG Performance

Scope 1 Chemicals List
GRI Index

SASB Index

TCFD Index

ē Appendicesē Forward-Looking

Statements

Contingent Labor by Type

Employee Type by Region
Indirect Labor (IDL)158

NXP Corporate Sustainability ReportData and Indices: ESG Performanceē Introduction

NXP ESG Performance

Unit

2020

2021

2022

2023

Americas

%

12%

12%

13%

12%

APAC

%

84%

84%

83%

84%

EMEA

%

4%

4%

4%

4%

Individual Contributor (DL)

%

38%

41%

39%

37%

Individual Contributor (IDL)

%

51%

50%

52%

53%

People Manager (IDL)

%

10%

9%

9%

10%

Executive (IDL)

%

0.5%

0.5%

0.5%

0.5%

Americas

%

23%

21%

19%

18%

Scope 1 Chemicals List

APAC

%

36%

39%

41%

41%

SASB Index

EMEA

%

41%

40%

40%

41%

%

32%

31%

34%

36%

Full-Time (FT)

%

99.3%

99.5%

99.5%

99.3%

Part-Time (PT)

%

0.7%

0.5%

0.5%

0.7%

ē Sustainability Strategy
ē Our BusinessDirect Labor (DL)ē Product Stewardshipē Environment, Healthand Safetyē Team Members
ē Social Responsibility

Employee by Roleē Governanceē Data and Indices
ē
ē
ē
ē
ē

ESG Performance
GRI Index

TCFD Index

ē Appendicesē Forward-Looking

Statements

159

NXP Corporate Sustainability Report

R&D Employee by Region

Percent R&D of Total NXP Footprint
Employment Type

Data and Indices: ESG Performanceē Introduction

Unit

2020

2021

2022

2023

Women

%

36%

37%

37%

36%

Men

%

64%

63%

63%

64%

Women

%

21%

19%

18%

28%

Men

%

79%

81%

82%

72%

Women

%

36%

37%

37%

36%

Men

%

64%

63%

63%

64%

Americas

%

11%

11%

12%

12%

APAC

%

79%

80%

78%

77%

Scope 1 Chemicals List

EMEA

%

9%

9%

11%

12%

SASB Index

Americas

%

24%

22%

22%

21%

APAC

%

48%

51%

51%

51%

EMEA

%

28%

27%

27%

29%

Women

%

13%

13%

16%

16%

Men

%

87%

87%

84%

84%

Women

%

16%

16%

18%

18%

Men

%

84%

84%

82%

82%

ē Sustainability Strategy

NXP ESG Performance
FT Employment by Genderē Our Businessē Product Stewardshipē Environment, Healthand Safetyē Team Members
ē Social Responsibility
ē Governanceē Data and Indices
ē
ē
ē
ē
ē

ESG Performance

PT Employment by Gender

Employee by Gender

Employee Gender by Region
Women

GRI Index

TCFD Index

ē AppendicesMenē Forward-Looking

Statements

Employee Gender by Role
Executive
People Manager

160

NXP Corporate Sustainability ReportData and Indices: ESG Performanceē Introduction
ē Sustainability Strategy

NXP ESG Performance
Individual Contributor

ē Our Businessē Product Stewardshipē Environment, Healthand Safetyē Team Members

IDL
DLē Social Responsibility
ē Governanceē Data and Indices
ē
ē
ē
ē
ē

ESG Performance

2020

2021

2022

2023

Women

%

38%

39%

39%

38%

Men

%

62%

61%

61%

62%

Women

%

23%

24%

25%

25%

Men

%

77%

76%

75%

75%

Women

%

58%

56%

55%

56%

Men

%

42%

44%

45%

45%

Women

%

16%

17%

19%

20%

Men

%

84%

83%

81%

80%

US Race and Ethnicity

Scope 1 Chemicals List

White (Not Hispanic / Latino)

%

52%

51%

49%

48%

SASB Index

Asian (Not Hispanic / Latino)

%

21%

20%

22%

24%

ē Appendices

Hispanic / Latino

%

14%

15%

16%

15%

Black or African American (Not Hispanic / Latino)

%

4%

5%

6%

5%

ē Forward-Looking

Native American or Alaska Native (Not Hispanic / Latino)

%

0.5%

0.6%

0.6%

0.6%

Native Hawaiian or Other Pacific Islander (Not Hispanic / Latino)

%

0.2%

0.2%

0.2%

0.2%

Two or More Races (Not Hispanic / Latino)

%

0.6%

0.9%

1%

1%

Undeclared

%

8%

7%

6%

6%

GRI Index

TCFD Index

Statements

161

R&D

Unit

NXP Corporate Sustainability ReportData and Indices: ESG Performanceē Introduction

Unit

2020

2021

2022

2023

White (Not Hispanic / Latino)

%

68%

63%

64%

63%

Asian (Not Hispanic / Latino)

%

9%

10%

13%

17%

ē Product Stewardship

Hispanic / Latino

%

6%

6%

7%

6%

ē Environment, HealthBlack or African American (Not
Hispanic / Latino)

%

5%

6%

7%

6%

Native American or Alaska Native(Not Hispanic / Latino)

%

—%

—%

—%

—%

ē Social Responsibility

Native Hawaiian or Other PacificIslander (Not Hispanic / Latino)

%

—%

—%

—%

—%

ē GovernanceTwo or More Races (Not Hispanic /Latino)

%

—%

1%

1%

1%

Undeclared

%

12%

14%

7%

7%

Scope 1 Chemicals List

White (Not Hispanic / Latino)

%

60%

59%

57%

55%

SASB Index

Asian (Not Hispanic / Latino)

%

19%

18%

20%

21%

Hispanic / Latino

%

9%

9%

11%

11%

Black or African American (Not
Hispanic / Latino)

%

3%

3%

3%

3%

Native American or Alaska Native(Not Hispanic / Latino)

%

0.3%

0.2%

0.3%

0.4%

Native Hawaiian or Other PacificIslander (Not Hispanic / Latino)

%

—%

—%

0.1%

0.1%

Two or More Races (Not Hispanic /Latino)

%

0.2%

0.5%

0.7%

1%

Undeclared

%

9%

9%

8%

9%

ē Sustainability Strategy

NXP ESG Performance
US Employee Race and Ethnicity by Roleē Our Businessand Safetyē Team Members

Executiveē Data and Indices
ē
ē
ē
ē
ē

ESG Performance
GRI Index

TCFD Index

ē Appendicesē Forward-Looking

Statements

162

NXP Corporate Sustainability Report

People Manager

Data and Indices: ESG Performanceē Introduction

NXP ESG Performance

Unit

2020

2021

2022

2023

White (Not Hispanic / Latino)

%

51%

51%

49%

47%

Asian (Not Hispanic / Latino)

%

27%

27%

30%

32%

Hispanic / Latino

%

9%

10%

10%

10%

Black or African American (Not
Hispanic / Latino)

%

2%

3%

3%

3%

Native American or Alaska Native(Not Hispanic / Latino)

%

0.3%

0.4%

0.2%

0.2%

ē Team Members

Native Hawaiian or Other PacificIslander (Not Hispanic / Latino)

%

0.1%

0.1%

0.1%

—%

ē Social Responsibility

Two or More Races (Not Hispanic /Latino)

%

0.6%

0.9%

1%

1%

ē GovernanceUndeclared

%

9%

9%

7%

7%

White (Not Hispanic / Latino)

%

50%

47%

44%

45%

Scope 1 Chemicals List

Asian (Not Hispanic / Latino)

%

10%

10%

9%

9%

SASB Index

Hispanic / Latino

%

28%

27%

29%

28%

Black or African American (Not
Hispanic / Latino)

%

8%

10%

12%

11%

Native American or Alaska Native(Not Hispanic / Latino)

%

0.9%

1%

2%

2%

Native Hawaiian or Other PacificIslander (Not Hispanic / Latino)

%

0.6%

0.6%

0.6%

0.6%

Two or More Races (Not Hispanic /Latino)

%

0.8%

1%

2%

2%

Undeclared

%

3%

3%

3%

4%

ē Sustainability Strategy
ē Our Businessē Product Stewardshipē Environment, Healthand Safety

Individual Contributor (IDL)ē Data and Indices
ē
ē
ē
ē
ē

ESG Performance
GRI Index

TCFD Index

ē Appendicesē Forward-Looking

Statements

163

NXP Corporate Sustainability Report

Individual Contributor (DL)

Data and Indices: ESG Performanceē Introduction
ē Sustainability Strategy
ē Our Businessē Product Stewardshipē Environment, Healthand Safety

NXP ESG Performance

Unit

2020

2021

2022

2023

<31 years old

%

19%

22%

25%

23%

31–50 years old

%

59%

57%

55%

56%

51+ years old

%

22%

21%

20%

21%

Executive

%

—%

—%

—%

—%

People Manager

%

0.1%

0.1%

0.1%

0.2%

Individual Contributor

%

19%

22%

24%

23%

Executive

%

0.2%

0.2%

0.1%

0.2%

People Manager

%

6%

6%

6%

6%

Individual Contributor

%

53%

51%

50%

50%

Executive

%

0.4%

0.3%

0.3%

0.4%

People Manager

%

3%

3%

3%

3%

Individual Contributor

%

18%

17%

17%

17%

%

6.9%

12.1%

11.7%

6.5%

Americas (IDL and DL)

%

5.6%

9.1%

10.4%

5.7%

APAC (IDL and DL)

%

8.9%

15.7%

14.7%

7.7%

EMEA (IDL and DL)

%

2.5%

4.3%

3.8%

3.8%

Employee by Age

Employee Age by Roleē Team Members
ē Social Responsibility<31 years oldē Governanceē Data and Indices
ē
ē
ē
ē
ē

31–50 years old

ESG Performance

Scope 1 Chemicals List
GRI Index

SASB Index

51+ years old

TCFD Index

ē Appendicesē Forward-Looking

Statements

Employee Attrition
Voluntary Turnover
Global Employee Voluntary Turnover164

NXP Corporate Sustainability ReportData and Indices: ESG Performanceē Introduction
ē Sustainability Strategy

NXP ESG Performanceē Product Stewardshipand Safety

ē Social Responsibility
ē Governanceē Data and Indices
ESG Performance

Scope 1 Chemicals List

IDL Voluntary Turnover

GRI Index

SASB Index

TCFD Index

ē Appendicesē Forward-Looking

Statements

DL Voluntary Turnover165

NXP Corporate Sustainability Report

2021

2022

2023

%

5.1%

7.9%

7.5%

4.1%

Americas (IDL)

%

6.2%

8.6%

9.4%

4.3%

APAC (IDL)

%

6.1%

9.9%

9.0%

4.2%

EMEA (IDL)

%

2.7%

4.5%

3.9%

3.8%

%

9.8%

18.4%

18.1%

10.4%

Americas (DL)

%

3.6%

10.5%

13.1%

9.6%

APAC (DL)

%

11.2%

20.3%

19.5%

10.9%

EMEA (DL)

%

0.7%

2.1%

2.9%

3.0%

Women

%

21%

23%

24%

26%

Men

%

79%

77%

77%

74%

<31 years old

%

22%

28%

25%

28%

31–50 years old

%

60%

55%

56%

48%

51+ years old

%

18%

16%

19%

24%

Women

%

63%

55%

60%

60%

Men

%

37%

45%

40%

40%

<31 years old

%

45%

53%

58%

55%

31–50 years old

%

44%

38%

35%

36%

51+ years old

%

11%

9%

8%

9%

Global DL Employee Voluntary Turnoverē Team Members

ē
ē
ē
ē
ē

2020

Global IDL Employee Voluntary Turnoverē Our Businessē Environment, Health

UnitData and Indices: ESG Performanceē Introduction
ē Sustainability Strategy
ē Our Business

NXP ESG Performanceand Safety

ē
ē
ē
ē
ē

ESG Performance

IDL

DL

Scope 1 Chemicals List
GRI Index

2023

%

3.2%

3.8%

1.5%

1.8%

Americas (IDL and DL)

%

5.4%

4.6%

1.4%

5.3%

APAC (IDL and DL)

%

4.1%

4.1%

1.2%

1.0%

EMEA (IDL and DL)

%

5.4%

2.2%

2.8%

1.0%

Americas

%

19%

19%

19%

17%

APAC

%

56%

56%

47%

39%

EMEA

%

25%

25%

34%

44%

Americas

%

2%

11%

16%

10%

APAC

%

97%

89%

83%

87%

EMEA

%

0.1%

0.6%

2%

2%

Women

%

23%

27%

29%

30%

Men

%

77%

73%

71%

70%

Women

%

32%

30%

35%

36%

Men

%

68%

70%

65%

64%

Women

%

56%

53%

56%

57%

Men

%

44%

47%

44%

43%

SASB Index

TCFD Index

ē Appendicesē Forward-Looking

Statements

Employee Hiring by TypeIDLIDL New College Graduate
DL

166

2022

Employee Hiring

ē Governanceē Data and Indices2021

Global Employee Involuntary Turnoverē Environment, Healthē Social Responsibility

2020

Involuntary Turnoverē Product Stewardshipē Team Members

Unit

NXP Corporate Sustainability ReportData and Indices: ESG Performanceē Introduction

Unit

2020

2021

2022

2023

White (Not Hispanic / Latino)

%

47%

42%

32%

35%

Asian (Not Hispanic / Latino)

%

32%

18%

26%

38%

Hispanic / Latino

%

10%

17%

18%

11%

Black or African American (Not Hispanic / Latino)

%

2%

11%

9%

3%

Native American or Alaska Native (Not Hispanic / Latino)

%

0.4%

1%

1%

1%

Native Hawaiian or Other Pacific Islander (Not Hispanic / Latino)

%

—%

0.4%

0.3%

—%

Two or More Races (Not Hispanic / Latino)

%

0.4%

3%

3%

2%

Undeclared

%

9%

7%

12%

10%

White (Not Hispanic / Latino)

%

29%

33%

35%

24%

Scope 1 Chemicals List

Asian (Not Hispanic / Latino)

%

43%

44%

39%

59%

SASB Index

Hispanic / Latino

%

11%

10%

13%

7%

Black or African American (Not Hispanic / Latino)

%

2%

4%

5%

2%

Native American or Alaska Native (Not Hispanic / Latino)

%

—%

—%

0.6%

—%

Native Hawaiian or Other Pacific Islander (Not Hispanic / Latino)

%

—%

—%

—%

—%

Two or More Races (Not Hispanic / Latino)

%

2%

7%

4%

1%

Undeclared

%

14%

3%

4%

6%

ē Sustainability Strategy
ē Our Businessē Product Stewardshipē Environment, Healthand Safetyē Team Members
ē Social Responsibility

NXP ESG Performance
United States Hiring by Race and Ethnicity

ē Governanceē Data and Indices
ē
ē
ē
ē
ē

ESG Performance
GRI Index

TCFD Index

ē Appendicesē Forward-Looking

Statements

167

NXP Corporate Sustainability Report

United States New College Gradate Hiring by Race and Ethnicity

Data and Indices: ESG Performanceē Introduction
ē Sustainability Strategy
ē Our Businessē Product Stewardshipē Environment, Healthand Safetyē Team Members
ē Social Responsibility
ē Governanceē Data and Indices
ē
ē
ē
ē
ē

ESG Performance

Unit

2020

2021

2022

2023

IDL

%

44%

49%

48%

60%

DL

%

61%

66%

68%

69%

IDL

%

45%

44%

45%

33%

DL

%

39%

32%

29%

28%

IDL

%

11%

6%

7%

7%

DL

%

0.7%

2%

3%

3%

Americas

%

13%

11%

14%

13%

APAC

%

38%

61%

47%

38%

EMEA

%

49%

29%

39%

49%

University

%

35%

24%

23%

44%

Global NXP Intern Conversion Rate

%

30%

40%

39%

48%

New College Graduates Hired

HC

460

644

1,070

910

Global Employee Promotion Rate

%

7%

8%

11%

10%

IDL

%

8%

11%

13%

12%

DL

%

4%

4%

7%

7%

Hiring by Age<31 years old
31–50 years old
51+ years old

R&D Hiring by Region

Scope 1 Chemicals List
GRI Index

SASB Index

TCFD Index

ē Appendicesē Forward-Looking

Statements

168

NXP ESG Performance

NXP Corporate Sustainability Report

IDL Talent Hiring

Data and Indices: ESG Performanceē Introduction
ē Sustainability Strategy
ē Our Businessē Product Stewardshipē Environment, Healthand Safety

NXP ESG Performance

Unit

2020

2021

2022

2023

Hours

89,591

168,229451,356

Courses

8,852

9,497

387,179

Global Online Learning
Total NXP Online Training Hours
Total Global Online Courses Completed
Global Online Courses Completed by IDL

Courses352,922

Global Online Courses Completed by DL

Courses

34,257

Average Online Training Hours (All Employees)

Hours

3.0

5.1

13.7

IDL

Hours

7.0

8.0

17.6

DL

Hours

0.2

0.6

4.6

Women

Hours

2.2

4.1

9.5

Men

Hours

3.5

5.7

14.5

ē Team Members
ē Social Responsibility
ē Governance

Average Online Training by IDL
and DL
Average Online Training by Genderē Data and Indices
ē
ē
ē
ē
ē

ESG Performance

Scope 1 Chemicals List
GRI Index

SASB Index

TCFD Index

ē Appendicesē Forward-Looking

Statements

Health and Safety
Total Injury Count Employees

#

23

25

36

36

Total Injury Count Contractors

#

8

7

12

11

Severity Rate

Rate

2.26

1.47

2.86

0.64

Total Case Incident Rate (TCIR)

Rate

0.08

0.08

0.10

0.10

#

0

0

0

0

Employee and Contractor Fatalities
Proportion of Injury Occurrences by Workplace Environment169

NXP Corporate Sustainability Report

Percentage of Manufacturing Injuries

%

90%

97%

94%

Percentage of Non-Manufacturing Injuries

%

10%

3%

6%

Data and Indices: ESG Performanceē Introduction

Unit

2020

2021

2022

2023

Percentage of Ergonomics Injuries

%

16%

4%

25%

28%

%

19%

32%

25%

28%

ē Product Stewardship

Percentage of Slip-and-Fall Injuries
Percentage of Machine-Safety Injuries

%

34%

40%

14%

19%

ē Environment, Health

Percentage of Chemical-Incident Injuries

%

3%

—%

—%

6%

Percentage of Other Injuries

%

28%

24%

36%

19%

Yes/No

Yes

Yes

Yes

Yes

ē Sustainability Strategy

NXP ESG Performance
Proportion of Injury Occurrences by Categoryē Our Businessand Safetyē Team Members
ē Social Responsibility

Social Responsibility
Social-Responsibility Management in the Supply Chain

ē GovernanceTotal Number of Audits18

#

4

6

14

17

ē Data and Indices

Percentage of Certified Conflict-Free for Tungsten, Tantalum, Tin and Gold
(3TG) Smelters

%

100%

100%

99%

100%

Percentage of Suppliers Who Signed NXP’s Supplier Code of Conduct

%

99%

99%

99%

100%

GRI Index

Closure Rate from Reporting Year End

%

97%

89%

88%

80%

TCFD Index

Closure Rate as of 2023 Year End

%

100%

100%

100%

80%

Business Ethics Code of Conduct

Yes/No

Yes

Yes

Yes

Yes

Anti-Bribery Ethics Policy

Yes/No

Yes

Yes

Yes

Yes

Employee Protection / Whistle-Blower Policy

Yes/No

Yes

Yes

Yes

Yes

Consumer Data Protection Policy

Yes/No

Yes

Yes

Yes

Yes

ē
ē
ē
ē
ē

ESG Performance

Scope 1 Chemicals List
SASB Index

ē Appendicesē Forward-Looking

Statements

Governance
Overview

18

170

NXP Corporate Sustainability Report

Total Number of Audits includes supplier audits and labor-agent audits.

Data and Indices: ESG Performanceē Introduction
ē Sustainability Strategy
ē Our Businessē Product Stewardshipē Environment, Healthand Safetyē Team Members
ē Social Responsibility
ē Governanceē Data and Indices
ē
ē
ē
ē
ē

Unit

2020

2021

2022

2023

HC

10

12

10

10

Unitary/
Two-Tier

Unitary

Unitary

Unitary

Unitary

HC

0

0

0

0

Yes/No

No

No

No

No

Number of Directors with Financial, Audit and Accounting Expertise

HC

8

9

6

6

Number of Corporate Executive Officers on the Board

HC

1

1

1

1

%

10%

8%

10%

10%

HC

9

11

9

9

%

90%

92%

90%

90%

HC

9

11

9

9

%

90%

92%

90%

90%

CEO Duality

Yes/No

No

No

No

No

Independent Chairperson

Yes/No

Yes

Yes

Yes

Yes

Independent Lead Director

Yes/No

N/A

N/A

N/A

N/A

Presiding Director

Yes/No

No

No

No

No

Former CEO or Equivalent on Board

Yes/No

No

No

No

No

Board Structure
Size of the Board
Unitary or Two-Tier Board System
Number of Employee Representatives on Board
Classified Board System

Percentage of Corporate Executive Officers on the Board
Board Independence
Number of Non-Executive Directors on the Board

ESG Performance

Percentage of Non-Executive Directors on the BoardGRI Index

Number Independent Directors

TCFD Index

Percentage of Independent Directors

Scope 1 Chemicals List
SASB Index

ē Appendicesē Forward-Looking

Statements

171

NXP ESG Performance

NXP Corporate Sustainability ReportData and Indices: ESG Performanceē Introduction

Unit

2020

2021

2022

2023

HC

3

4

4

4

%

30%

33%

40%

40%

Female CEO or Equivalent

Yes/No

No

No

No

No

Female Chairperson or Equivalent

Yes/No

No

No

No

Yes

HC

10

12

10

10

Yes/No

Yes

Yes

Yes

Yes

HC

1

1

1

1

%

17%

17%

17%

17%

Age of the Youngest Director

Age

50

51

51

52

Age of the Oldest Director

Age

79

79

78

69

Board of Directors Age Range

Age

29

28

27

17

Scope 1 Chemicals List

Board Average Age

Age

65

65

65

61

SASB Index

Board Age Limit

Yes/No

No

No

No

No

Average Board Tenure

Years

6.3

5.0

5.0

3.5

Date Executive Director Appointed to the Board of Directors

Date

May 2020

May 2020

May 2020

May 2020

Number of Board Meetings

#

5

5

5

5

Board-Meeting Attendance

%

>75%

>75%

>75%

>75%

Independent Directors Board-Meeting Attendance

%

>75%

>75%

>75%

>75%

HC

0

0

0

0

ē Sustainability Strategy
ē Our Businessē Product Stewardshipē Environment, Healthand Safetyē Team Members
ē Social Responsibility
ē Governanceē Data and Indices
ē
ē
ē
ē
ē

ESG Performance
GRI Index

TCFD Index

ē Appendices

NXP ESG Performance
Board and Executive Diversity
Number of Women on Board
Percentage of Women on Board

Number of Directors with Executive Leadership
CEO or Equivalent Appointed from Within
Number of Female Executives
Percentage of Female Executives

ē Forward-Looking

Statements

Board Meetings

Number of Directors Attending Less Than 75% of Meetings

172

NXP Corporate Sustainability ReportData and Indices: ESG Performanceē Introduction
ē Sustainability Strategy
ē Our Businessē Product Stewardshipē Environment, Healthand Safetyē Team Members
ē Social Responsibility
ē Governanceē Data and Indices
ē
ē
ē
ē
ē

ESG Performance

Unit

2020

2021

2022

2023

Size of Audit Committee

HC

3

3

4

4

Number of Independent Directors on Audit Committee

HC

3

3

4

4

%

100%

100%

100%

100%

Yes/No

Yes

Yes

Yes

Yes

Number of Non-Executive Directors on Audit Committee

HC

3

3

4

4

Audit Committee Meetings

#

9

10

13

10

Audit Committee-Meeting Attendance

%

>75%

>75%

>75%

>75%

Size of Compensation Committee

HC

4

5

4

5

Number of Independent Directors on Compensation Committee

HC

4

5

4

5

%

100%

100%

100%

100%

Yes/No

Yes

Yes

Yes

Yes

Number of Non-Executive Directors on Compensation Committee

HC

4

5

4

5

Number of Compensation Committee Meetings

#

8

7

6

7

Compensation Committee-Meeting Attendance

%

>75%

>75%

>75%

>75%

Outside Compensation Advisors Appointed

Yes/No

Yes

Yes

Yes

Yes

Claw-Back Provision for Executive Compensation

Yes/No

Yes

Yes

Yes

Yes

Audit Committee

Percentage of Independent Directors on Audit Committee
Independent Audit Committee Chairperson

Compensation Committee

Scope 1 Chemicals List

Percentage of Independent Directors on Compensation Committee

SASB Index

Independent Compensation Committee Chairperson

GRI Index

TCFD Index

ē Appendicesē Forward-Looking

Statements

173

NXP ESG Performance

NXP Corporate Sustainability ReportData and Indices: ESG Performanceē Introduction
ē Sustainability Strategy
ē Our Businessē Product Stewardshipē Environment, Healthand Safetyē Team Members
ē Social Responsibility
ē Governanceē Data and Indices
ē
ē
ē
ē
ē

ESG Performance

Unit

2020

2021

2022

2023

Size of Nomination Committee

HC

4

5

3

4

Number of Independent Directors on Nomination Committee

HC

4

5

3

4

%

100%

100%

100%

100%

Yes/No

Yes

Yes

Yes

Yes

Number of Non-Executive Directors on Nomination Committee

HC

4

4

3

4

Number of Nomination-Committee Meetings

#

4

4

4

4

Nomination Committee-Meeting Attendance

%

>75%

>75%

>75%

>75%

Non-Executive Director with Responsibility for ESG

Yes/No

No

No

No

No

Executive Director with Responsibility for ESG

Yes/No

Yes

Yes

Yes

Yes

4

5

5

Nominating, Governance and Sustainability Committee

Percentage of Independent Directors on Nomination Committee
Independent Nomination Committee Chairperson

Environmental, Social and Governance (ESG) Governance

Scope 1 Chemicals List

Directors with ESG Experience

SASB Index

Executive Compensation Linked to ESG

Yes/No

No

No

Yes

Yes

Board Compensation Linked to ESG

Yes/No

No

No

No

No

%

10%

10%

10%

10%

Poison Pill

Yes/No

No

No

No

No

Blank-Check-Preferred Authorized

Yes/No

No

No

No

No

Dual-Class Unequal Voting Rights – Common Shares

Yes/No

No

No

No

No

GRI Index

TCFD Index

ē Appendicesē Forward-Looking

Statements

174

NXP ESG Performance

NXP Corporate Sustainability ReportHC

Shareholder Rights
Ownership Required for Special MeetingData and Indices: Scope 1 Chemicals List
ē Introduction
ē Sustainability Strategy

Unit

2019

2020

2021

2022

2023

C2F6

tCO2e

57,28437,59943,83652,221

27,699CF4

tCO2e

123,419

91,538

117,939

127,900

88,367

CHF3

tCO2e

32,59829,63341,81845,56438,898SF6

tCO2e23,495

19,95387,760103,255

71,885

NF3

tCO2e

39,43528,82445,64860,55348,538

CH3F

tCO2e

14

16

10

C3F8

tCO2e

2,746

2,968

1,385

1,483

1,168

C4F8

tCO2e

9,521

6,396

7,518

9,206

6,120

ESG Performance

C4F8O

tCO2e

0

0

0

0

0

GRI Index

CH2F2

tCO2e

62

21

152

60

20

C4F6

tCO2e

0

380

225

0

0

C5F8

tCO2e

6

14

4

4

4

Total PFCs

tCO2e

288,566

217,326

346,299

400,261

282,709tCO2e

13,592

14,49819,40020,503

15,569ē Our Businessē Product Stewardshipē Environment, Healthand Safetyē Team Members
ē Social Responsibility
ē Governanceē Data and Indices
ē
ē
ē
ē
ē

We strive to be transparent with our stakeholders regarding our carbon footprint, and specify how we determine what are and are not considered Scope 1 Emissions. Below is the listof chemicals we identify as Scope 1 Emissions, which are subsequently reported as Scope 1 in the Emissions section of the Environment, Health and Safety chapter of this Report.

Scope 1 Chemicals List
List
SASB Index

TCFD Index

ē Appendices

Scope 1 Chemical List of Emissions
Perfluorinated Compounds (PFCs) in tCO2e

ē Forward-Looking

Statements

N2O Emissions in tCO2e
Total N2O175

NXP Corporate Sustainability ReportData and Indices: Scope 1 Chemicals List
ē Introduction

Unit

2019

2020

2021

2022

2023

R-22

tCO2e

197

150

188

181

72

R-123

tCO2e

22

32

5

41

61

R402A

tCO2e

0

0

0

0

0

R-134a

tCO2e

766

2,505

3,258

5,813

4

R-23

tCO2e

93

121

0

19

30

R-404A

tCO2e

135

93

155

49

21

R-407C

tCO2e

0

0

0

0

0

Scope 1 Chemicals List
List

R-410A

tCO2e

244

113

35

0

7

SASB Index

R-422D

tCO2e

0

0

0

0

0

tCO2e

89,47854,48173,78434,0963,969

ē Sustainability Strategy
ē Our Businessē Product Stewardshipē Environment, Healthand Safetyē Team Members
ē Social Responsibility
ē Governanceē Data and Indices
ē
ē
ē
ē
ē

ESG Performance
GRI Index

Heat-Transfer Fluids (HTFs) in tCO2e

Pure HFCs

HFC Mixtures

TCFD Index

ē Appendicesē Forward-Looking

Statements

176

Scope 1 Chemical List of Emissions

NXP Corporate Sustainability Report

Perfluorocarbons
FC40

Data and Indices: Scope 1 Chemicals List
ē Introduction

Unit

2019

2020

2021

2022

2023

FC3283tCO2e

17,544

19,307

21,775

18,595

16,684

FC72

tCO2e

0

0

0

0

0

FC770

tCO2e

4

22

22

51

0

HFE7100

tCO2e

931

675

801

388

284

HFE7200

tCO2e

144

119

139

109

86

HFE7500

tCO2e

51

109

67

128

85

Galden D02 TS

tCO2e

0

0

0

0

0

Galden HT 80

tCO2e

0

0

0

27

0

Galden HT 110

tCO2e

791

804

231

203

236

Galden HT 135

tCO2e

682

610

318

477

0

Galden HT 200

tCO2e

1,638

2,268

3,522

2,142

2,862

Scope 1 Chemicals List
List

Galden HT 270

tCO2e

810

480

0

180

120

SASB Index

Galden PFS-2

tCO2e

280

210

210

140

420

Galden ZT 130

tCO2e

0

0

0

0

0

tCO2e

113,809

82,100104,51062,63826,808ē Sustainability Strategy
ē Our Businessē Product Stewardshipē Environment, Healthand Safetyē Team Members
ē Social Responsibility
ē Governanceē Data and Indices
ē
ē
ē
ē
ē

ESG Performance
GRI Index

TCFD Index

ē Appendicesē Forward-Looking

Statements

177

NXP Corporate Sustainability Report

Scope 1 Chemical List of Emissions
Polyfluoroether Mixtures

Total HTFs

Data and Indices: Scope 1 Chemicals List
ē Introduction
ē Sustainability Strategy
ē Our Businessē Product Stewardshipē Environment, Healthand Safetyē Team Members
ē Social Responsibility
ē Governanceē Data and Indices
ē
ē
ē
ē
ē

ESG Performance

Unit

2019

2020

2021

2022

2023

Emissions of Ozone-Depleting (ODP) and Non-ODP Substances in kg
Halogenated or Chlorinated Hydrocarbons (Non-ODP) Used in Processes
HFC-32 (CAS 75-10-5)

kg

0

0

0

0

0

HFC-41 (CAS 593-53-3)

kg

14

7

20

19

0

HFC-32 (CAS 75-10-5)

kg

0

18

133

69

12

HFC-41 (CAS 593-53-3)

kg

0

0

0

0

0

HFC-134 (CAS 359-35-3)

kg

40

40

41

0

0

HFC-134a (CAS 811-97-2)

kg

450

464

448

737

0

Non-ODP Refrigerants for Cooling Systems Such as Air Conditioning

Ozone-Depleting Substances From Cooling Systems Such as Air Conditioning

Scope 1 Chemicals List
List

HFC-22 (CAS 75-45-6)

kg

32

8

8

56

41

SASB Index

HFC-123 (CAS 306-83-2)

kg

0

45

45

0

1,414

Total ODPs and Non-ODPs

kg

536

582

695

881

1,467

GRI Index

TCFD Index

ē Appendicesē Forward-Looking

Statements

178

Scope 1 Chemical List of Emissions

NXP Corporate Sustainability ReportData and Indices: GRI Index
ē Introduction
ē Sustainability Strategy

Statement of Use

NXP Semiconductors has reported the information cited in this Global Reporting Initiative (GRI) content index for theperiod January 1, 2023 to December 31, 2023 with reference to the GRI Standards.

GRI 1 Used

GRI 1: Foundation 2021

GRI Standard

Disclosure2023 Disclosure/Location

2-1 Organizational detailsa. Our legal name is NXP Semiconductors N.V. andour commercial name is or “NXP Semiconductors”(NASDAQ: NXPI)
b. We were incorporated in the Netherlands in 2006 as a
Dutch public company with limited liability (naamloze
vennootschap)c. Our principal executive office is at High Tech Campus
60, 5656 AG Eindhoven, the Netherlandsd. Our Business: Overview - Worldwide Manufacturing
Site Locations

2-2 Entities included in the organization’ssustainability reportinga. Introduction: About This Reportb. There is no difference between the entities includedin financial reporting and sustainability reporting.
Financial reporting is available on our Investor Relations
website.

2-3 Reporting period, frequency and contact pointa. The reporting period covers calendar year 2023,
unless otherwise stated. NXP publishes Corporate
Sustainability Reports on an annual basis.
b. Our reporting period aligns with our annual financial
reporting. Financial reporting is available on our
Investor Relations website.
c. Publication date: March 15, 2024
d. Contact point for questions about this Report orreported information: csr@nxp.com
Introduction: About This Report

2-4 Restatements of information

When the data from prior reporting years exceeds a 2%change in total values, we will restate values and givean explanation in the related section. We have revised
the 2021 and 2022 N2O values in the Scope 1 Chemical
List to align with adoption of the 2019 Refinement
Intergovernmental Panel on Climate Change (IPCC)
Guidelines for National Greenhouse Gas Inventories. For
more details, see the Emissions section in this Report.
Otherwise, there are no restatements in this 2023 Report.

ē Our Businessē Product Stewardshipē Environment, Healthand Safetyē Team Members
ē Social Responsibility
ē Governanceē Data and Indices
ē
ē
ē
ē
ē

ESG Performance

Scope 1 Chemicals List

GRI Index

SASB Index

GRI 2: General Disclosures 2021

TCFD Index

ē Appendicesē Forward-Looking

Statements

179

NXP Corporate Sustainability ReportData and Indices: GRI Index
ē Introduction

GRI Standard

Disclosure2023 Disclosure/Location

2-5 External assurance

The 2023 Corporate Sustainability Report is not assured
through an assurance provider. We perform extensive
internal due diligence and data validation to ensure theaccuracy of the information and data presented in thisReport.

2-6 Activities, value chain and other business
relationshipsa. Semiconductorsb. Our Business: Overview, Sustainable Product Solutions
Social Responsibility
See our Form 10-K, section "Item 1. Business."
This document is available on our Investor Relations
website.
c. NXP operates owned manufacturing facilities primarily
in the United States, Netherlands, Malaysia, Mainland
China, Thailand and Taiwan, as well as in Singapore
together with our joint-venture partner Taiwan
Semiconductor Manufacturing Company (TSMC).
d. No significant changes.

2-7 Employees

Data and Indices: ESG Performance

2-8 Workers who are not employees

We currently report the headcount for contingent labor.
Contingent labor includes temp-agency workers andcontractors. Temp-agency workers – such as engineers,
administrative assistants and factory workers – are hired
to supplement NXP staff. Contractors are often specialized
consultants contracted to complete projects on behalf of
NXP through a scope of work. In 2023, our external temp
and contractor workforce was 4,397.

2-9 Governance structure and composition

Governance: Overview, Board of Directors
See our Proxy Statement, available on our Investor
Relations website.

2-10 Nomination and selection of the highest
governance body

Governance: Board of Directors
See our Proxy Statement, available on our Investor
Relations website.

2-11 Chair of the highest governance body

Governance: Board of Directors
See our Proxy Statement, available on our Investor
Relations website.

ē Sustainability Strategy
ē Our Businessē Product Stewardshipē Environment, Healthand Safetyē Team Members
ē Social Responsibility
ē Governanceē Data and Indices
ē
ē
ē
ē
ē

GRI 2: General Disclosures 2021

ESG Performance

Scope 1 Chemicals List

GRI Index

SASB Index

TCFD Index

ē Appendicesē Forward-Looking

Statements

180

NXP Corporate Sustainability ReportData and Indices: GRI Index
ē Introduction

GRI Standard

Disclosure2023 Disclosure/Location

2-12 Role of the highest governance body inoverseeing the management of impacts

Sustainability Strategy: GovernanceIntroduction: Stakeholder Engagement
Data and Indices: TCFD Index

ē Product Stewardship

2-13 Delegation of responsibility for managing impacts

Sustainability Strategy
Introduction: Stakeholder Engagement
Data and Indices: TCFD Index

ē Environment, Health2-14 Role of the highest governance bodyin sustainability reporting

Our Corporate Sustainability Report is reviewed
and approved by the Nominating, Governance andSustainability Committee of the Board of Directors.

2-15 Conflicts of interest

Other than the compensation items described in our
Proxy Statement, no decisions to enter into materialtransactions in which there were conflicts of interest
with directors occurred during the financial year 2023.
See our Proxy Statement, “Certain Relationships andRelated Transactions” section for additional details. This
document is available on our Investor Relations website.

2-16 Communication of critical concerns

Governance: Ethics

2-17 Collective knowledge of the highest
governance body

NXP has had third-party consultants with ESG andsustainability expertise present to the Board of Directors
to help the Board make business decisions that bestalign with sustainable development. NXP has five Board
members with relevant ESG experience.

2-18 Evaluation of the performance of the highest
governance bodySee our Proxy Statement, “How Our Directors are Selected
and Evaluated” section. This document is available on our
Investor Relations website.
Also see our Corporate Governance website.

2-19 Remuneration policies

a. See our Proxy Statement, “How Our Directors are
Compensated” and “Executive Compensation” sections.
This document is available on our Investor Relations
website.
b. Sustainability Strategy: Goals

2-20 Process to determine remuneration

See our Proxy Statement, “Executive Compensation”
section. This document is available on our Investor
Relations website. Also see our Corporate Governancewebsite.

ē Sustainability Strategy
ē Our Businessand Safetyē Team Members
ē Social Responsibility
ē Governanceē Data and Indices
ē
ē
ē
ē
ē

ESG Performance

Scope 1 Chemicals List

GRI Index

SASB Index

GRI 2: General Disclosures 2021

TCFD Index

ē Appendicesē Forward-Looking

Statements

181

NXP Corporate Sustainability ReportData and Indices: GRI Index
ē Introduction

GRI Standard

Disclosure2023 Disclosure/Location

2-21 Annual total compensation ratio

See our Proxy Statement, “CEO Pay Ratio Disclosure”
section. This document is available on our Investor
Relations website.

2-22 Statement on sustainable development strategy

Introduction: A Letter From Our CEO
Sustainability Strategy: Approach

2-23 Policy commitments

Governance: Ethics
Social Responsibility
See our Code of Conduct
See our Human Rights Policy
See our Auditable Standards on Social Responsibility
Appendices: Sustainability Policy

ē Social Responsibility

2-24 Embedding policy commitments

Governance: Ethics
Social Responsibility

ē Governance2-25 Processes to remediate negative impacts

Governance: Ethics
Social Responsibility

2-26 Mechanisms for seeking advice and raisingconcerns

Governance: Ethics

2-27 Compliance with laws and regulations

We take Notices of Violations (NOVs) seriously. We work
quickly to identify corrective actions and take steps tominimize the chance of reoccurrence. In 2023, we received
one NOV for a minor infraction resulting in a fine less than
$1,000. We resolved the infraction quickly, and otherwise
maintained an exceptional compliance record.

2-28 Membership associations

Introduction: Stakeholder Engagement

2-29 Approach to stakeholder engagement

Introduction: Stakeholder Engagement

2-30 Collective bargaining agreements

Employees at all of our global locations have always
had the freedom to associate and/or right to collective
bargaining as provided by local statutes. In the countries
and regions where there are collective-bargaining
agreements, we are compliant with all agreements
required by laws and regulations. Approximately 23% of
our employees are covered by collective-bargaining
agreements.

ē Sustainability Strategy
ē Our Businessē Product Stewardshipē Environment, Healthand Safetyē Team Members

ē Data and Indices
ē
ē
ē
ē
ē

ESG PerformanceGRI 2: General Disclosures 2021

Scope 1 Chemicals List

GRI Index

SASB Index

TCFD Index

ē Appendicesē Forward-Looking

Statements

182

NXP Corporate Sustainability ReportData and Indices: GRI Index
ē Introduction

GRI Standard

Disclosure2023 Disclosure/Location

3-1 Process to determine material topics

Sustainability Strategy: Approach

3-2 List of material topics

Sustainability Strategy: Approach

3-3 Management of material topics

Sustainability Strategy: Approach
Governance: Ethics, Cybersecurity
Environment, Health and Safety
Social Responsibility

201-1 Direct economic value generated and distributed

See our Form 10-K, “Consolidated Statements ofOperations,” “Consolidated Statements of Changes
in Equity,” “Note 6 - Income Taxes,” and “Operating
Expenses” sections. This document is available on our
Investor Relations website.

201-2 Financial implications and other risks
and opportunities due to climate change

See our Form 10-K, “Item 1A. Risk Factors” section. This
document is available on our Investor Relations website.
Data and Indices: TCFD Index

201-3 Defined benefit plan obligations andother retirement plans

See our Form 10-K, “Postretirement Benefits” section. This
document is available on our Investor Relations website.
Team Members: Compensation and Benefits

201-4 Financial assistance received from government

See our Form 10-K, “Notes to the Consolidated Financial
Statements” chapter, including “Note 4 - Supplemental
Financial Information” and “Note 6 - Income Taxes.” This
document is available on our Investor Relations website.

202-1 Ratios of standard entry level wage by gendercompared to local minimum wage

We do not currently disclose this information.

202-2 Proportion of senior management hired fromthe local community

We do not currently disclose this information. We
focus on hiring the best and brightest individuals fromthe communities where we operate, for all levels of
employment.

GRI 203: Indirect Economic Impacts 2016

203-1 Infrastructure investments and services
supported

We do not think this disclosure is applicable to NXP’soperations at this time.

203-2 Significant indirect economic impacts

We do not currently disclose this information.

GRI 204: Procurement Practices 2016

204-1 Proportion of spending on local suppliers

We do not currently disclose this information.

ē Sustainability Strategy
ē Our Business

GRI 3: Material Topics 2021

ē Product Stewardshipē Environment, Healthand Safetyē Team Members
ē Social Responsibility
ē Governance

GRI 201: Economic Performance 2016

ē Data and Indices
ē
ē
ē
ē
ē

ESG Performance

Scope 1 Chemicals List

GRI Index

SASB Index

TCFD Index

ē Appendicesē Forward-Looking

Statements183

NXP Corporate Sustainability Report

GRI 202: Market Presence 2016

Data and Indices: GRI Index
ē Introduction

GRI Standardē Sustainability Strategy
ē Our Business

Disclosure2023 Disclosure/Location

205-1 Operations assessed for risks related
to corruption

We assess our worldwide operations and our suppliers
for risks related to corruption. Our in-place policies andtrainings mitigate these risks.
Governance: Ethics

205-2 Communication and training aboutanti-corruption policies and procedures

We define our anti-corruption policies and proceduresin our Code of Conduct and include our policies andprocedures in team-member training. This is also
included in our Anti-Bribery and Anti-Corruption (ABC)
Policy.
Governance: Ethics

205-3 Confirmed incidents of corruption andactions taken

We track any anti-corruption allegations, conduct
thorough reviews and take appropriate remedial
measures. We consider this confidential informationand do not report it publicly.

206-1 Legal actions for anti-competitive behavior,anti-trust and monopoly practices

We do not currently disclose this information.

207-1 Approach to tax

Governance: Taxation

207-2 Tax governance, control and risk management

Governance: Taxation

207-3 Stakeholder engagement and managementof concerns related to tax

Governance: Taxation

207-4 Country-by-country reporting

We do not currently disclose this information.

301-1 Materials used by weight or volume~97% of our finished product portfolio contains tin,tantalum, tungsten and gold (3TG).

301-2 Recycled input materials used

Most of the purchased materials required to manufacture
our products must be of a very high purity. Where feasible,
we reuse purchased materials in other manufacturing
processes.

301-3 Reclaimed products and their packaging
materials

We participate in various recycling programs, but are
unable to determine the percentage of NXP products ourcustomers or end users recycle. We provide information
about the substances within our components socustomers and end users can make informed decisions
regarding disposal.

ē Product Stewardshipē Environment, Health

GRI 205: Anti-corruption 2016

and Safetyē Team Members
ē Social Responsibility
ē Governance

GRI 206: Anti-competitive Behavior 2016

ē Data and Indices
ē
ē
ē
ē
ē

ESG Performance

Scope 1 Chemicals List

GRI Index

GRI 207: Tax 2019

SASB Index

TCFD Index

ē Appendicesē Forward-Looking

Statements

GRI 301: Materials 2016184

NXP Corporate Sustainability ReportData and Indices: GRI Index
ē Introduction

GRI Standard

Disclosure2023 Disclosure/Location

302-1 Energy consumption within the organization

Environment, Health and Safety: Energy
Data and Indices: ESG Performance302-2 Energy consumption outside of the organization

We do not currently disclose this information.

302-3 Energy intensity

Environment, Health and Safety: Energy
Data and Indices: ESG Performance

ē Environment, Health302-4 Reduction of energy consumption

Environment, Health and Safety: Energy
Data and Indices: ESG Performanceē Team Members

302-5 Reductions in energy requirements of products
and services

Environment, Health and Safety: Energy
Data and Indices: ESG Performanceē Social Responsibility

303-1 Interactions with water as a shared resource

Environment, Health and Safety: Water
Data and Indices: ESG Performanceē Governance303-2 Management of water discharge-related
impacts

Environment, Health and Safety: Water
Data and Indices: ESG Performance303-3 Water withdrawal

Environment, Health and Safety: Water
Data and Indices: ESG Performance303-4 Water discharge

Environment, Health and Safety: Water
Data and Indices:ESG Performance303-5 Water consumption

Environment, Health and Safety: Water
Data and Indices: ESG Performance

304-1 Operational sites owned, leased, managed in,or adjacent to, protected areas and areas of highbiodiversity value outside protected areas

We do not think this disclosure is applicable to NXP’soperations at this time.

304-2 Significant impacts of activities, products
and services on biodiversity

We do not think this disclosure is applicable to NXP’soperations at this time.

304-3 Habitats protected or restored

We do not think this disclosure is applicable to NXP’soperations at this time.

304-4 IUCN Red List species and national conservation
list species with habitats in areas affected byoperations

We do not think this disclosure is applicable to NXP’soperations at this time.

ē Sustainability Strategy
ē Our Businessē Product Stewardship

GRI 302: Energy 2016

and Safety

ē Data and Indices
ē
ē
ē
ē
ē

ESG Performance

GRI 303: Water and Effluents 2018

Scope 1 Chemicals List

GRI Index

SASB Index

TCFD Index

ē Appendicesē Forward-Looking

Statements

GRI 304: Biodiversity 2016185

NXP Corporate Sustainability ReportData and Indices: GRI Index
ē Introduction

GRI Standardē Sustainability Strategy
ē Our Businessē Product Stewardshipē Environment, Healthand Safety

GRI 305: Emissions 2016

ē Team Members
ē Social Responsibility
ē Governanceē Data and Indices
ē
ē
ē
ē
ē

ESG Performance

Scope 1 Chemicals List

GRI Index

SASB Index

TCFD Index

ē Appendices

GRI 306: Waste 2020

ē Forward-Looking

Statements

GRI 308: Supplier Environmental Assessment
2016

186

NXP Corporate Sustainability Report

Disclosure2023 Disclosure/Location

305-1 Direct (Scope 1) GHG emissions

Environment, Health and Safety: Emissions
Data and Indices: ESG Performance

305-2 Energy indirect (Scope 2) GHG emissions

Environment, Health and Safety: Emissions
Data and Indices: ESG Performance

305-3 Other indirect (Scope 3) GHG emissions

Environment, Health and Safety: Emissions
Data and Indices: ESG Performance

305-4 GHG emissions intensity

Environment, Health and Safety: Emissions
Data and Indices: ESG Performance

305-5 Reduction of GHG emissions

Environment, Health and Safety: Emissions
Data and Indices: ESG Performance

305-6 Emissions of ozone-depleting substances (ODS)

Environment, Health and Safety: Hazardous Materials
Data and Indices: Scope 1 Chemicals List

305-7 Nitrogen oxides (NOx), sulfur oxides (SOx) andother significant air emissions

Environment, Health and Safety: Emissions
Data and Indices: ESG Performance

306-1 Waste generation and significant waste-related
impacts

Environment, Health and Safety: Management, Waste
Product Stewardship

306-2 Management of significant waste-related
impacts

Environment, Health and Safety: Management, Waste
Product Stewardship
Social Responsibility: Supplier Engagement306-3 Waste generated

Environment, Health and Safety: Waste
Data and Indices: ESG Performance

306-4 Waste diverted from disposal

Environment, Health and Safety: Waste
Data and Indices: ESG Performance306-5 Waste directed to disposal

Environment, Health and Safety: Waste
Data and Indices: ESG Performance308-1 New suppliers that were screened using
environmental criteria

Social Responsibility: Supplier Engagement
Environment, Health and Safety: Management308-2 Negative environmental impacts in the supply
chain and actions taken

Social Responsibility: Supplier Engagement
Environment, Health and Safety: Management

Data and Indices: GRI Index
ē Introduction

Disclosure2023 Disclosure/Location

ē Sustainability Strategy

401-1 New employee hires and employee turnover

Team Members: Future Talent, Team-Member Retention

ē Our Business401-2 Benefits provided to full-time employees that are
not provided to temporary or part-time employees

Team Members: Compensation and Benefits

401-3 Parental leave

We provide our employees with parental leave thatmeets or exceeds local regulatory requirements, but ourofferings vary by location. We do not currently discloseparental-leave data. For more details,
please visit our NXP Benefits website.
Team Members: Compensation and Benefits402-1 Minimum notice periods regarding operationalchanges

We do not currently disclose this information.

403-1 Occupational health and safety management
systemEnvironment, Health and Safety: Health and Safety403-2 Hazard identification, risk assessment andincident investigation

Environment, Health and Safety: Health and Safety403-3 Occupational health services

Environment, Health and Safety: Health and Safety

Scope 1 Chemicals List

GRI Index

403-4 Worker participation, consultation andcommunication on occupational health and safety

Environment, Health and Safety: Health and Safety

SASB Index

TCFD Index403-5 Worker training on occupational health andsafetyEnvironment, Health and Safety: Health and Safety403-6 Promotion of worker health

Environment, Health and Safety: Health and Safety403-7 Prevention and mitigation of occupational
health and safety impacts directly linked by business
relationships

Environment, Health and Safety: Health and Safety

403-8 Workers covered by an occupational healthand safety management system

Environment, Health and Safety: Health and Safety

403-9 Work-related injuries

Environment, Health and Safety: Health and Safety403-10 Work-related ill health

The main types of employee injuries include slips andfalls, machine safety and ergonomics. Each incident
is documented and corrective and/or preventative
measures are put in place.
Environment, Health and Safety: Health and Safety

ē Product StewardshipGRI Standard

GRI 401: Employment 2016

ē Environment, Healthand Safetyē Team Members

GRI 402: Labor/Management Relations 2016

ē Social Responsibility
ē Governanceē Data and Indices
ē
ē
ē
ē
ē

ESG Performanceē Appendicesē Forward-Looking

Statements

187

NXP Corporate Sustainability Report

GRI 403: Occupational Health and Safety 2018

Data and Indices: GRI Index
ē Introduction

Disclosure2023 Disclosure/Location

ē Sustainability Strategy404-1 Average hours of training per year per employee

Team Members: Development and Growthē Our Business404-2 Programs for upgrading employee skills andtransition assistance programs

Team Members: Development and Growth404-3 Percentage of employees receiving regularperformance and career development reviews

We do not currently disclose this percentage, but we
disclose other information about performance and careerdevelopment reviews in this Report.
Team Members: Team-Member Retention

405-1 Diversity of governance bodies and employees

Data and Indices: ESG Performance
Governance: Board of Directors

405-2 Ratio of basic salary and remuneration of
women to men

We do not currently disclose this information.

GRI 406: Non-discrimination 2016406-1 Incidents of discrimination and corrective
actions taken

We track any discrimination allegations, conduct
thorough reviews and take appropriate remedial
measures. We consider this confidential informationand do not report it publicly.

GRI 407: Freedom of Association andCollective Bargaining 2016407-1 Operations and suppliers in which the right tofreedom of association and collective bargaining may
be at riskSocial Responsibility
See our Human Rights Policy
See our Auditable Standards on Social Responsibility,“L&H.7. Freedom of Association and Collective Bargaining”
clauseGRI 408: Child Labor 2016408-1 Operations and suppliers at significant risk
for incidents of child labor

Labor and Human Rights website

GRI 409: Forced or Compulsory Labor 2016409-1 Operations and suppliers at significant risk
for incidents of forced or compulsory labor

Labor and Human Rights website

GRI 410: Security Practices 2016

410-1 Security personnel trained in human rights
policies or procedures

We do not think this is applicable to NXP’s operations
at this time.

GRI 411: Rights of Indigenous Peoples 2016

411-1 Incidents of violations involving rights ofindigenous peoples

We do not think this is applicable to NXP’s operations
at this time.

413-1 Operations with local community engagement,
impact assessments and development programs

We do not think this is applicable to NXP’s operations at
this time.

413-2 Operations with significant actual and potential
negative impacts on local communities

We do not think this is applicable to NXP’s operations at
this time.

ē Product StewardshipGRI Standard

GRI 404: Training and Education 2016

ē Environment, Healthand Safetyē Team Members

GRI 405: Diversity and Equal Opportunity 2016

ē Social Responsibility
ē Governanceē Data and Indices
ē
ē
ē
ē
ē

ESG Performance

Scope 1 Chemicals List

GRI Index

SASB Index

TCFD Index

ē Appendicesē Forward-Looking

Statements

GRI 413: Local Communities 2016188

NXP Corporate Sustainability ReportData and Indices: GRI Index
ē Introduction

GRI Standard

Disclosure2023 Disclosure/Location

414-1 New suppliers that were screened using social
criteria

Social Responsibility: Supplier Engagement414-2 Negative social impacts in the supply chain andactions taken

Social Responsibility: Supplier Engagement415-1 Political contributions

We do not currently disclose this information.

416-1 Assessment of the health and safety impacts ofproduct and service categories

We do not think this is applicable to NXP’s operations at
this time.

ē Team Members

416-2 Incidents of non-compliance concerning thehealth and safety impacts of products and services

We do not think this is applicable to NXP’s operations at
this time.

ē Social Responsibility

417-1 Requirements for product and service informationand labeling

Product Stewardship: Environmental Product Compliance417-2 Incidents of non-compliance concerning productand service information and labeling

NXP did not have a non-compliance with regulations
concerning product information and labeling in 2023.

417-3 Incidents of non-compliance concerningmarketing communications

NXP did not have a non-compliance with marketing
communications in 2023.

418-1 Substantiated complaints concerning breachesof customer privacy and losses of customer data

We do not currently disclose this information.

ē Sustainability Strategy
ē Our Businessē Product Stewardship

GRI 414: Supplier Social Assessment 2016

GRI 415: Public Policy 2016

ē Environment, Healthand Safetyē Governance

GRI 416: Customer Health and Safety 2016

GRI 417: Marketing and Labeling 2016

ē Data and Indices
ē
ē
ē
ē
ē

ESG Performance

Scope 1 Chemicals List

GRI Index

SASB Index

TCFD Index

ē Appendicesē Forward-Looking

Statements

189

NXP Corporate Sustainability Report

GRI 418: Customer Privacy 2016

Data and Indices: SASB Index
ē Introduction

SASB Topic

Code

Accounting Metric

Unit of Measure2023 NXP Response

TC-SC-110a.1(1)	Gross global Scope 1
emissions and(2)	amount of total emissions
from perfluorinatedcompounds

Metric tons (t)CO2-e(1) 370,174(2) 282,709

TC-SC-110a.2

Discussion of long-term andshort-term strategy or plan to
manage Scope 1 emissions,emissions reduction targets,and an analysis of performanceagainst those targets

n/aPlease see the Sustainability Strategy
chapter, the Emissions section of theEnvironment, Health and Safety chapter and
TCFD Index of the Data and Indices chapterof this Report.

TC-SC-130a.1(1)	Total energy consumed,(2) percentage grid electricity,(3) percentage renewable

Gigajoules (GJ), Percentage (%)(1) 6,700,545(2) 88%(3) 35%

ē Sustainability Strategy
ē Our Businessē Product StewardshipGreenhouse Gas Emissions

ē Environment, Healthand Safetyē Team Members
ē Social Responsibility

Energy Management in
Manufacturing

ē Governanceē Data and Indices
ē
ē
ē
ē
ē

ESG Performance

Water Management

TC-SC-140a.1(1)	Total water withdrawn,(2)	total water consumed,
percentage of eachin regions with High orExtremely High Baseline
Water Stress

Waste Management

TC-SC-150a.1(1)	Amount of hazardous wastefrom manufacturing,(2)	percentage recycled

Scope 1 Chemicals List
GRI Index

Metric tons (t), Percentage (%)

SASB Index
Index
TCFD Index

ē Appendicesē Forward-Looking

Statements

1 Regions of water stress are classified as such based on the High or Extremely High Baseline Water Stress
categories using the World Resources Institute’s (WRI) Water Risk Atlas tool, Aqueduct. In our 2022 Report, weused the Overall Water Risk indicator, but now use the Water Stress indicator in the Water Risk Atlas tool to
calculate the percentage of water withdrawal and consumption in regions with High or Extremely High Baseline
Water Stress.
190

Thousand cubic meters (m³),
Percentage (%)

NXP Corporate Sustainability Report(1)	Total water withdrawn was 12,554,434. Of
that, 28% was at manufacturing facilities
located in regions with High or ExtremelyHigh Baseline Water Stress.
(2)	Total water consumed was 3,657,987. Of
that, 31% was at manufacturing facilities
located in regions with High or ExtremelyHigh Baseline Water Stress.1(1) 8,341(2) 67%

Data and Indices: SASB Index
ē Introduction

SASB Topic

Code

Accounting Metric

Unit of Measure2023 NXP Response

TC-SC-320a.1

Description of efforts to assess,monitor, and reduce exposureof employees to human healthhazardsn/a

NXP uses controls and procedures to assess,monitor and reduce the exposure of ouremployees to human health hazards. These
controls and procedures are detailed in
our management system, which is certified
to the ISO 45001 standard. As part of thismanagement system, we reduce risk byconducting risk assessments. Each risk
assessment generates a list of controls tolimit risk. For example, personal protective
equipment (PPE) and extensive training forour employees are provided to effectively
control risks identified through the risk
assessment. Continuous monitoring of
the documented controls is ongoing, toverify that the controls are indeed working
appropriately and that the risk to employees
is minimized. For more information, please
see the Health and Safety section of theEnvironment, Health and Safety chapterof this Report.

TC-SC-320a.2

Total amount of monetarylosses as a result of legal
proceedings associated with
employee health and safety
violations

Reporting currency

In 2023, NXP did not incur monetary losses asa result of legal proceedings associated with
employee health-and-safety violations.

Percentage (%)(1)	At the end of 2023, 4% of employees were
foreign nationals.
(2)	At the end of 2023, the percentageof employees located offshore from
NXP’s country of domicile was 18% of ourworkforce in the Americas, 15% in EMEA
and 60% in APAC.

ē Sustainability Strategy
ē Our Businessē Product Stewardshipē Environment, Healthand Safetyē Team Members
ē Social Responsibility

Employee Health & Safetyē Governanceē Data and Indices
ē
ē
ē
ē
ē

ESG Performance

Scope 1 Chemicals List
GRI Index

SASB Index
Index
TCFD Index

ē Appendicesē Forward-Looking

Statements

191

NXP Corporate Sustainability Report

Recruiting & Managing a
Global & Skilled Workforce

TC-SC-330a.1

Percentage of employees thatare (1) foreign nationals and (2)located offshore

Data and Indices: SASB Index
ē Introduction

SASB Topicē Sustainability Strategy
ē Our Businessē Product Stewardship

Code

Accounting Metric

TC-SC-410a.1

Percentage of products byrevenue that contain IEC 62474
declarable substances

TC-SC-410a.2

Processor energy efficiency at asystem-level for: (1) servers, (2)desktops, and (3) laptops

Product Lifecycle
Management

ē Environment, Health

Unit of Measure2023 NXP Response

Percentage (%)

In 2023, ~19% of our finished-product portfolio
contained IEC 62474-declarable substances.
This percentage is based on the number ofsellable parts, not revenue.

Various, by product category

Metrics related to the energy-efficiency of aprocessor are not applicable to our businessbecause NXP does not manufacture servers,
desktops or laptops.

and Safety

TC-SC-440a.1

Description of the managementof risks associated with the useof critical materials

n/a

See the Product Stewardship chapter,
including the Responsible Mineral Sourcing
section, of this Report. Also see the
Responsible Minerals Sourcing website, which
includes our Responsibly Sourced Minerals
Policy, Conflict Minerals Reporting Template
and Conflict Minerals Report filed underForm SD with the US Securities and Exchange
Commission.

TC-SC-520a.1

Total amount of monetarylosses as a result of legal
proceedings associated with
anticompetitive behavior
regulations

Reporting currency

In 2023, NXP did not incur monetary losses asa result of legal proceedings associated with
anticompetitive-behavior regulations.

ē Team Members
ē Social Responsibility

Materials Sourcing

ē Governanceē Data and Indices
ē
ē
ē
ē
ē

ESG Performance

Scope 1 Chemicals List
GRI Index

SASB Index
Index
TCFD Index

ē Appendicesē Forward-Looking

Statements

192

NXP Corporate Sustainability ReportIntellectual Property
Protection & Competitive
Behavior

Data and Indices: TCFD Index
ē Introduction
ē Sustainability Strategy
ē Our Businessē Product Stewardshipē Environment, Healthand Safetyē Team Members
ē Social Responsibility

If emissions of greenhouse gases (GHGs) continue at current rates, global warming will accelerate. Temperature gains above 2 °C (relative to the pre-industrial period)
would have catastrophic economic and social consequences.
The growing demand for decision-useful, climate-related information from organizations across all sectors of the economy has given rise to several disclosure standards
that support greater accountability and transparency. One such standard, established in 2015, is the Task Force on Climate-Related Financial Disclosures (TCFD), which defines
a set of voluntary disclosures of climate-related financial risk. Using the TCFD format, companies can inform stakeholders of any risks relating to climate change that they face.
The TCFD structures their recommendations around four themes that represent core elements of how organizations operate: governance, strategy, risk management
and metrics and targets.
2023 TCFD Index
Governance
Disclose the organization’s governance around climate-related risks and opportunities.

ē Governanceē Data and Indices
ē
ē
ē
ē
ē

ESG Performance

Scope 1 Chemicals List
GRI Index

SASB Index

TCFD Index

ē Appendicesē Forward-Looking

Statements

193

NXP Corporate Sustainability Reporta. Describe theboard’s oversightof climaterelated risks andopportunities.

The Nominating, Governance and Sustainability Committee of NXP’s Board of Directors is responsible for reviewing the Company’s policies
and practices relating to significant issues of sustainability, environmental, social and governance (ESG) and public issues of concern that
affect investors and other key stakeholders, including climate-related risks and opportunities. The Nominating, Governance and Sustainability
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. A monitoring dashboard of top key performance indicators (KPIs) for our status on progress is reviewed on aquarterly basis.
The Board and Board Committees consider climate-related issues when making decisions involving strategy, major plans of action, riskmanagement policies, annual budgets and business plans. The Board and Board Committees consider climate-related issues when setting theorganization’s performance objectives, monitoring implementation and performance and overseeing major capital expenditures, acquisitions anddivestitures.
The Nominating and Governance Committee reviews and approves our carbon-footprint goals, strategy, roadmap and budget.
Please see our Nominating, Governance and Sustainability Committee Charter for more details. Please see the Governance section of the
Sustainability Strategy chapter of this Report for more details.

Data and Indices: TCFD Index
ē Introduction

2023 TCFD Index
The CEO and the NXP Management Team, under the supervision of NXP’s Board of Directors, are responsible for implementation of NXP's
sustainability strategy, policies and goals. Climate-related risks and opportunities are included in the ESG and Sustainability function within the
Company and are managed in the same way as other ESG matters.

ē Sustainability Strategy
ē Our Businessē Product Stewardshipē Environment, Healthand Safetyē Team Members

b. Describe
management’s
role in assessing
and managing
climate-relatedrisks andopportunities.

ē Social Responsibility

ē Data and Indices
ESG Performance

Scope 1 Chemicals List
GRI Index

SASB Index

TCFD Index

ē Appendicesē Forward-Looking

Statements

194

NXP Corporate Sustainability Report

In addition to the ESG Management Board, NXP also has an Environment, Health and Safety (EHS) Management Board. While the ESG andEHS Management Boards approve the strategy and targets, the Sustainability and EHS Corporate Teams focus on policies, goals, program
development and measurable improvement plans, all while monitoring and controlling operational functions. The Sustainability and EHS
Corporate Teams meet regularly with the ESG and EHS Management Boards to discuss and review NXP’s performance.
The Sustainability and EHS Corporate Teams set targets, conduct annual self-assessments and third-party audits, ensure timely closure ofcorrective-action plans, monitor and control working hours and rest days and conduct internal capacity-building. The Site Steering Committee
Teams implement, measure and validate policies, drive continuous improvement at their respective sites and report progress to Site Management
and the Sustainability and EHS Corporate Teams.

ē Governance

ē
ē
ē
ē
ē

NXP's ESG Management Board, which is comprised of Management Team members and other senior leaders, oversees the implementation ofsustainability strategy and policy and ensures appropriate resourcing. The ESG Management Board is chaired by our General Counsel and Chief
Sustainability Officer and supported by our Chief Financial Officer, Chief Strategy Officer, Chief Technology Officer, Chief Human Resources Officer
and Chief Operations and Manufacturing Officer. The ESG Management Board meets regularly to ensure our ESG performance is in line with
our strategy and goals. The Nominating, Governance and Sustainability 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.

Strategy
Disclose the actual and potential impacts of climate-related risks and opportunities on the organization’s businesses, strategy, and financial planning where suchinformation is material.

Data and Indices: TCFD Index
ē Introduction

2023 TCFD Index
Type of Risk and Opportunity

ē Sustainability Strategy
ē Our Businessē Product Stewardshipē Environment, Healthand Safetyē Team Members

a. Describe
the climaterelated risks andopportunities
the organization
has identified
over the short,medium, andlong term.

ē Social Responsibility
ē Governanceē Data and Indices
ē
ē
ē
ē
ē

ESG Performance

Scope 1 Chemicals List
GRI Index

SASB Index

TCFD Index

ē Appendicesē Forward-Looking

Statements

195

NXP Corporate Sustainability Reportb. Describe
the impact
of climaterelated risks andopportunities on
the organization’s
businesses,
strategy,
and financial
planning.
c. Describe theresilience of theorganization’s
strategy,taking into
considerationdifferent climaterelated scenarios,
including a 2°C or
lower scenario.

Time Horizon

Description

Acute Physical Risk: Severe Storms and Heavy
Precipitation

Short-term(1-5 years)

At some some of our sites, there is a risk of severe storms and heavy
precipitation. This can include hail, rain, snow, high winds, lightning,flooding and tornadoes. The potential impact is primarily on our own
operations.

Acute Physical Risk: Cyclones and Tropical Storms

Short-term(1-5 years)

At one of our sites, there is a risk of cyclones and tropical storms. Thiscan include high winds, heavy rain, lightning, flooding, high currents andtornadoes. The potential impact is primarily on our own operations.

Short-term(1-5 years)

One of NXP’s key climate-related opportunities is to provide products fora carbon-free and low-carbon world. Semiconductor solutions enable
the provision of green energy and the electrification of various sectors
and help optimize power conversion for maximum energy efficiency.
Supplying these kinds of energy-saving solutions has a potentiallybeneficial impact on our operations and the operations of downstream
stakeholders.

Market Opportunity: Low-carbon products

Our climate-related acute physical risks have the potential to impact revenue through decreased production capacity andmay also impact the well-being of our team members.
Our climate-related market opportunity has the potential to impact our product strategy and R&D, as well as our revenue
from increased product demand.
Some risks that are as yet unknown, or are currently believed not to be material, could ultimately have an impact on our businesses,
objectives, revenues, income, assets, liquidity and/or capital resources.

We plan to conduct climate-related risk and opportunity assessments using scenario analysis. We will disclose subsequent resultsin future Reports.

Data and Indices: TCFD Index
ē Introduction
ē Sustainability Strategy
ē Our Businessē Product Stewardshipē Environment, Healthand Safetyē Team Members
ē Social Responsibility
ē Governanceē Data and Indices
ē
ē
ē
ē
ē

ESG Performance

Scope 1 Chemicals List
GRI Index

SASB Index

TCFD Index

ē Appendicesē Forward-Looking

Statements

2023 TCFD Index
Risk Management
Disclose how the organization identifies, assesses, and manages climate-related risks.
a. Describe theorganization’s
processes for
identifying
and assessing
climate-relatedrisks.

Various teams collaborate to assess climate risks and opportunities. This assessment is completed at least annually. For climate-related risks
specifically, our Business-Resilience Team conducts our most comprehensive assessment of physical risks, with the aim of more thoroughly
assessing transition risks in the near future. This assessment of physical risks evaluates physical climate-related risks through site-specific risk
data provided by a third party, stakeholder interviews, surveys and other methods. Risks are prioritized at the corporate and local levels by theirscope and operational controls. We will expand on this in the future as we increase our understanding of how climate risks may impact ourbusiness.

b. Describe theorganization’s
processes for
managing
climate-relatedrisks.

Site and corporate Business-Resilience Teams regularly review and update assessments of risks, including climate-related risks and theirassociated action plans. We document high-priority risks and identify action plans to reduce the relative impact of those risks. All significant risks
and opportunities are escalated depending on the management team member responsible for the risk and opportunity type. Risk assessments
and action plans are used as input for formal goal planning, management review updates and, if applicable, capital financial planning. Feedback
obtained from management-team reviews, the Sustainability Office, the ESG and EHS Management Boards, Business-Resilience Teams and otherstakeholders is also incorporated into risk assessments and action plans.

c. Describe
how processes
for identifying,assessing, andmanaging
climaterelated risks areintegrated into
the organization’s
overall risk
management.

The results of our climate-related risk assessment, along with other risks identified by the Business-Resilience Team, inform the risks considered by
the Enterprise Risk Management function within NXP.

Metrics and Targets
Disclose the metrics and targets used to assess and manage relevant climate-related risks and opportunities where such information is material.

196

NXP Corporate Sustainability ReportData and Indices: TCFD Index
ē Introduction
ē Sustainability Strategy
ē Our Businessē Product Stewardshipē Environment, Healthand Safetyē Team Members

2023 TCFD Index
a. Disclosethe metrics
used by theorganization toassess climaterelated risks andopportunities
in line with its
strategy and risk
management
process.

Normalized Scope 1 and 2 (Market-Based) Emissions

ē Data and Indices

Scope 1 and 2 (Market-Based) Emissions Intensity

ESG Performance
GRI Index

SASB Index

TCFD Index

ē Appendicesē Forward-Looking

Statements

We discuss water, energy and waste with equivalent levels of detail. We make all environmental data available in this Report and on ourEnvironment, Health and Safety website.
Total Scope 1 and 2 (Market-Based) Emissions

ē Governance

Scope 1 Chemicals List

We measure our carbon footprint according to the GHG Protocol, a set of internationally recognized standards for quantifying and reporting GHG
emissions. We report on all three of the protocol’s defined categories: Scope 1 (direct emissions), Scope 2 (indirect emissions, owned) and Scope
3 (upstream and downstream emissions). 2023 marked the first time we made a detailed inventory of all 15 categories of Scope 3, mapping NXP’s
footprint throughout our entire value chain. Our Scope 3 emissions are understandably larger than our Scope 1 and 2 emissions, given that Scope
3 emissions represent an impact beyond our operations. While we will remain focused on our Scope 1 and 2 decarbonization efforts, we will also
work to establish methods to reduce our Scope 3 footprint, and will also set Scope 1, Scope 2 and Scope 3 SBTs in 2024.

GHG Disclosureē Social Responsibility

ē
ē
ē
ē
ē

Our disclosure of climate-related metrics provides current and historical information for analysis of our Scope 1, 2 and 3 emissions. In theEnvironment, Health and Safety chapter of this Report, we include both absolute and normalized data to factor in our production index (square
meters of manufactured wafers) and align with our semiconductor peer group.

b. Disclose Scope
1, Scope 2, and,if appropriate,
Scope 3greenhouse gas(GHG) emissions,and related risks.

Total Scope 1, 2 (Market-Based) and 3 Emissions

NXP Corporate Sustainability Report

2020

2021

2022

2023

tCO2e

982,123

1,180,209

1,169,506

897,536tCO2e/m2

17.8

17.6

15.9

15.6

tCO2e/$ Million

114

107

89

68

19,722,642

12,754,590

tCO2e

Scope 1 Emissions
PFC Emissions

tCO2e

217,326

346,299

400,261

282,709

HTF Emissions

tCO2e82,100104,51062,49926,808

Fossil-Fuel Emissions

tCO2e41,81944,22946,06845,080N2O Emissions

tCO2e

14,49819,40020,503

15,569Other Scope 1 Emissions

tCO2e

720

777

1,102

8

tCO2e

356,462515,215

530,433

370,174

Total Scope 1 Emissions

197

Unit

Data and Indices: TCFD Index
ē Introduction

2023 TCFD Index
Scope 2 (Market-Based) Emissions

ē Sustainability Strategy
ē Our Businessē Product StewardshipIndirect Emissions from Manufacturing Sites

tCO2e604,013642,640

613,620506,228

Indirect Emissions from Non-Manufacturing Sites

tCO2e

21,64822,35425,453

21,134tCO2e625,661

664,994

639,073

527,362

Total Scope 2 (Market-Based) Emissions

ē Environment, Healthand Safety

Scope 3 Emissions
Category 1 - Purchased Goods and Services

tCO2e3,429,662

3,291,179

Category 2 - Capital Goods

tCO2e

320,199

266,665

Category 3 - Fuel- and Energy-Related Activities

tCO2e

93,64589,852Category 4 - Upstream Transportation andDistribution

tCO2e

13,154

10,313Category 5 - Waste Generated in Operations

tCO2e

10,945

9,544

Category 6 - Business Travel

tCO2e

9,092

12,980Category 7 - Employee Commuting

tCO2e

63,07964,805

Category 8 - Upstream Leased Assets

tCO2e

6,441

6,768

ē Appendices

Category 9 - Downstream Transportation andDistribution

tCO2e

13,306

10,583

ē Forward-Looking

Category 10 - Processing of Sold Products

tCO2e

79,50656,351Category 11 - Use of Sold Products

tCO2e

14,510,934

8,035,180

Category 12 - End-of-life Treatment of Sold Products

tCO2e

2,524

2,160

Category 13 - Downstream Leased Assets

tCO2e

649

674

Category 14 - Franchises

tCO2e

Not Applicable

Not Applicable

Category 15 - Investments

tCO2e

Not Applicable

Not ApplicabletCO2e

18,553,136

11,857,054

ē Team Members
ē Social Responsibility
ē Governanceē Data and Indices
ē
ē
ē
ē
ē

ESG Performance

Scope 1 Chemicals List
GRI Index

SASB Index

TCFD Index

Statements

b. Disclose Scope
1, Scope 2, and,if appropriate,
Scope 3greenhouse gas(GHG) emissions,and related risks.

Total Scope 3 Emissions
198

NXP Corporate Sustainability ReportData and Indices: TCFD Index
ē Introduction
ē Sustainability Strategy

Climate-Related Mid-Term Targets
Emissions: Reduce carbon emissions by 35% in 2027 (2021 baseline)ē Our Business

Energy:50% renewable electricity by 2027

Water:

60% of wastewater recycled by 2027

ē Product Stewardshipē Environment, Healthand Safetyē Team Members
ē Social Responsibility
ē Governanceē Data and Indices
ē
ē
ē
ē
ē

ESG Performance

Scope 1 Chemicals List
GRI Index

SASB Index

TCFD Index

ē Appendicesē Forward-Looking

Statements

199

2023 TCFD Index

NXP Corporate Sustainability Reportc. Describe thetargets used by
the organization
to manage
climate-relatedrisks andopportunities,
and theorganization’s
performanceagainst thesetargets.

2023 Results
Emissions: We decreased our absolute Scope 1 and 2 emissions by 24% compared to our baseline year of 2021.
Energy:	We used 39% renewable electricity, an increase of 4 percentage points compared to 2022, and an increase of 22 percentage
points compared to 2014.
Water:	We recycled 51% of wastewater, an increase of 2 percentage points compared to 2022, and an increase of 15 percentage
points compared to 2014.
We also have short-term targets for most of our mid-term goals. These are included in our Annual Incentive Plan (AIP),
and are tied to the compensation of all NXP employees.
Please see the Goals section of the Sustainability Strategy chapter, and the Emissions, Energy and Water sections of theEnvironment, Health and Safety chapter of this Report for more details.

AppendicesDisclosing additional information
and resources

Appendices: UN Global Compact
ē Introduction
ē Sustainability Strategy
ē Our Businessē Product Stewardshipē Environment, Healthand Safetyē Team Members
ē Social Responsibility
ē Governanceē Data and Indicesē AppendicesēēēēUN Global Compact
Sustainability Policy

Top 100 Supplier List
Acronyms andAbbreviations

ē Forward-Looking

Statements

201

NXP Corporate Sustainability Report

In 2017, NXP became a signatory to the United Nations
Global Compact (UNGC), the world’s largest corporatesustainability initiative. In 2023, we completed the newCommunication on Process questionnaire on corporate
action and performance related to the Ten Principlesof the UN Global Compact and the Sustainable
Development Goals. Our UN Global Compact
Communication on Progress can be found on the
UN Global Compact website.

across our global network of sites.

Human Rights

Appendices: Sustainability Policy

NXP believes that business can only ﬂourish in societies where human rights are protected
and respected. NXP recognizes that business has the responsibility to respect humanrights and is capable of contributing to ensuring human rights worldwide. We have formal
grievance and remedy processes to enable anyone, including NXP employees, employees
in NXP’s supply chain and other external stakeholders, to report human rights concerns.

ē Introduction

Employees

ē Sustainability Strategy

NXP has a global workforce that is highly diverse, both geographically and culturally.
NXP is committed to providing a workplace that is safe and secure, where employees
are consulted and engaged, and where everyone is treated with respect and dignity.

Products
Products

ē Our Businessē Product Stewardshipē Environment, Healthand Safetyē Team Members
ē Social Responsibility
ē Governanceē Data and Indicesē AppendicesēēēēUN Global Compact

Our Commitment
For NXP, Secure Connections for a Smarter World involves working
practices that are responsible and sustainable. We provide a safe
working environment, promote good health, and strive to minimize theenvironmental impact of our activities. We also work hard to do morethan just comply with existing standards, we actively strive to establish
a global benchmark for sustainability in our industry.
NXP fosters ethical principles and respect for the environment,
employees, and the communities in which we work. Quality is ournumber one driver, and, as a business, our goal is economic success.
However, we also go to great lengths to ensure that sustainability is
ingrained in our business conduct at all levels.

Sustainability Policy
Sustainability
PolicyOur Policy

Acronyms andValue

Top 100 Supplier List
Abbreviations

ē Forward-Looking

Statements

NXP’s core values consist of raising the bar, engaging curiosity, taking initiative, working
together and developing deep core competence, driven by a total quality mindset.
These values form the basis of our customer-focused passion to win.
EthicsThe NXP Code of Conduct deﬁnes our principles and high standards, which are applied toour business practices and those of our global supply chain. This Code is incorporated inall employee contracts, encouraging respectful, and professional standards of behavior
across our global network of sites.

NXP is committed to creating the highest quality products and packages. These Secure
NXP
is committed
creating
the arehighestquality to
products
packages.
These Secure
Connections
for a toSmarterWorlddeveloped
provideanda positive
contribution
toConnections
for a Smarter
Worldgeneration
are developed
to provide
a positive
contributionimpact
tosociety. With eachnew productwe aimto reducethe environmentalsociety.
Withandeach
new product generation we aim to reduce the environmental impactof their use
disposal.
of their use and disposal.
Operations
Operations
NXP continually strives to improve our operations and minimize our impact on the
NXP
continually
to improve
operations
and minimize
our impact
on the source
environment,
westrivesconserve
natural ourresources,
minimize
our emissions,
responsibly
environment,
we conserve
naturalresources, minimize
ourinemissions,
responsibly
sourceour minerals, andtry to phaseout hazardous
substances
our products
and processes.
our minerals, and try to phase out hazardous substances in our products and processes.

Compliance
Compliance

For our products and processes, NXP complies with applicable legislation, regulations,
For
ourof
products
processes,
NXP complies
withapplicableregulations,codes
practice,and
often
going beyond
speciﬁed
standards.
NXPlegislation,
has a management
codes
practice,Environment,
often going beyond
edSocial
standards.
NXP hasanda management
systemofcovering
Health &speciﬁ
Safety,Responsibility
Product
systemcovering
Health& Safety,Where
Sociallaws
Responsibility
and ProductCompliancethat Environment,
are continuously
improved.
and regulations
do notCompliancethat arecontinuously
improved.
Where
lawsstandards.
and regulations do notprovide adequate
controls,
NXP adopts
its own
detailed
provide adequate controls, NXP adopts its own detailed standards.

Local initiatives
Local initiatives

NXP works closely with partners and individuals to establish meaningful relationships
NXP
closely
with partners
individualsintowhich
establish
meaningful relationshipsthat works
supportand strengthen
theandcommunities
we operate.
that support and strengthen the communities in which we operate.

Dialog
Dialog

NXP actively participates in industry platforms and engages in open, ongoing dialogs
NXP
participatesin industry
platforms
andtheengagesopen,
ongoing
dialogs
with actively
employees,
customers,
investors,
authorities,
public, in
and
other
key stakeholders
withemployees,improvecustomers,
authorities,
the public, and other key stakeholders
to continuously
our investors,
sustainability
performance.
to continuously improve our sustainability performance.

Transparency
Transparency

NXP publishes sustainability results both internally and externally, showing our targets
NXP
sustainability
results
both internally and externally, showing our targets
and publishes
measurements
on a rangeof metrics.
and measurements on a range of metrics.
This policy and its resulting actions are regularly reviewed and updatedThis
policyits resultingneeds.
actions are regularly reviewed and updated
to meetourandstakeholders’to meet our stakeholders’ needs.

Human Rights
NXP believes that business can only ﬂourish in societies where human rights are protected
and respected. NXP recognizes that business has the responsibility to respect humanrights and is capable of contributing to ensuring human rights worldwide. We have formal
grievance and remedy processes to enable anyone, including NXP employees, employees
in NXP’s supply chain and other external stakeholders, to report human rights concerns.
202

NXP Corporate Sustainability Report

Employees

Kurt Sievers
Kurt
Sievers
President
and CEO,
President
and CEO,NXP Semiconductors
NXP Semiconductors
NXP Sustainability Policy, May 2023
NXP Sustainability Policy, May 2023

Appendices: Top 100 Supplier List
ē Introduction
ē Sustainability Strategy
ē Our Businessē Product Stewardshipē Environment, Healthand Safetyē Team Members
ē Social Responsibility
ē Governanceē Data and Indicesē AppendicesēēēēUN Global Compact
Sustainability Policy

Top 100 Supplier
List
Supplier List
Acronyms andAbbreviations

ē Forward-Looking

Statements

203

NXP Corporate Sustainability Report

We pursue mutually beneficial relationships with our suppliers and contractors. We support their commitment to observe applicable rules of law and encourage their ongoing
efforts to improve ethical practices regarding business, the environment and human rights. The NXP Top 100 Supplier List represents 99% of procurement expenditures in 2023
for materials, manufacturing and assembly of our products worldwide.
2023 Top 100 Supplier ListAAM

FURUKAWA

MS-SCHRAMBERG

SOITECADVANCED ASSEMBLY MATERIALSGLOBAL WAFERSMULTEK TECHNOLOGIESSPIL

AIR LIQUIDEGLOBALFOUNDRIESMURATASTATS CHIPPAC

ALLTEK TECHNOLOGYHD MICROSYSTEMSNANYASTMICROELECTRONICS

AMKOR

HDS

NEXPERIA

SUBTRON TECHNOLOGYARDENTECHENKEL

NGKED

SUMCO

ASE

HERAEUSNIPPON MICROMETAL CORPORATIONSUMIKA

ASMC

HONEYWELL

ON SEMISUMITOMO BAKELITEASTINNOV SEMIPAK MATERIALSPEAKTANAKAATXITWPHOENIX SILICON INTERNATIONAL

TCI

BASS

JENTECH PRECISION INDUSTRIAL

PHOTRONICSTDKBEIFANG QITI CHANPINJSR CORPORATIONPOWERCHIPTECHNICCHANG WAH ELECTRONICS

KENJI TECHNOLOGYPROBETECHNOPROBECHIPBONDKENLY PRECISIONRESONACTFMECOHERENTKES

RJR TECHNOLOGIESTOPPAN PHOTOMASKSCPAK

KETECARS TECHNOLOGIESTRIO-TECHDALSAKINSUS INTERCONNECT TECHNOLOGYSAMSUNG SEMICONDUCTORTSMCDATANG NXP SEMICONDUCTORSKOSTATSENJU METAL

UMC

DISCO

KOSTECSYS

SHANGHAI SIRUIXIN MATERIALSUTACDUPONT

KYOCERASHENZHENSHI BOSITE KEJI YOUXIAN GON

VACUUM ENGINEERING & MATERIALSENTEGRISLEADING TECHNOLOGIESSHIN-ETSUVANGUARD

EPAK

LINDE

SHINKO ELECTRONICS

VERSUM

FEINMETALL

LINXENS

SILTRONICWENSON

FUJIFILM ELECT MATERALSMGC PURE CHEMICALSSKYWORKSWIN

FUJIMIMITSUI HIGH-TEC

SMIC

WOLFSPEEDAppendices: Acronyms and Abbreviations
ē Introduction

1 to 9ē Sustainability Strategy
ē Our Businessē Product Stewardshipand Safetyē Team Members
ē Social Responsibility
ē Governanceē Data and Indices

Tin, Tantalum, Tungsten and GoldCEO

Chief Executive Officer

5G

Fifth Generation (Cellular)cm

Centimeter

CMRT

Conflict Minerals Reporting Template (RMI)CSO

Civil Society Organization

CSRD

Corporate Sustainability Reporting Directive (EU)ABC

Anti-Bribery and Anti-Corruption (NXP)

AI

Artificial Intelligence

AIP

Annual Incentive Plan (NXP)

ANSI

American National Standards Institute

DART

Days Away, Restricted, or Transferred (OSHA)APAC

Asia-Pacific

DCGC

Dutch Corporate Governance Code

AR5

Assessment Report #5 (IPCC)

DE&I

Diversity, Equality and Inclusion (NXP)

ATMC

Austin Technology and Manufacturing Center (NXP)

DIP

Dual In-Line Package

AusPREP

Austin Pre-Freshman Engineering Program (Huston-Tillotson
University)

DL

Direct Labor

EBTF

European Business Tax Forum

ECHA

European Chemicals Agency

ECO-Products

Environmental Compliance Organization for Products (NXP)

EHS

Environment, Health and Safety

ELV

End-of-Life Vehicle Directive (EU)

EMEA

Europe, the Middle East and Africa

EMRT

Extended Minerals Reporting Template (RMI)

EPA

Environmental Protection Agency (US)ē AppendicesēēēēUN Global Compact
Sustainability Policy

Top 100 Supplier List

B

BillionAbbreviations
Abbreviations

BALTBlack Achievement Leadership Team (NXP)ē Forward-Looking

BEPS

Base Erosion and Profit Shifting (OECD)

BEYA

Black Engineer of the Year ConferenceStatementsC204

NXP Corporate Sustainability Report

D

E

B

Acronyms andCommon Criteria Evaluation Assurance Level

3TG

Aē Environment, Health

CC EALCAHRA

Conflict-Affected and High-Risk Areas (EPRM)

CAS

Chemical Abstracts Service

Appendices: Acronyms and Abbreviations
ē Introduction
ē Sustainability Strategy
ē Our Businessē Product Stewardshipē Environment, Healthand Safetyē Team Members
ē Social Responsibility

Employee Resource Group (NXP)

HC

Headcount

ERM

Enterprise Risk Management

HEAT

Hispanic Education Awareness Team (NXP)

ESG

Environmental, Social and Governance

HFCs

Hydrofluorocarbons

ESIA

European Semiconductor Industry Association

HR

Human Resources

ETI

Ethical Trading Initiative

HRCC

Human Resources and Compensation Committee (NXP)

EU

European Union

HTFs

Heat-Transfer Fluids

EV

Electric Vehicle
IATF

International Automotive Task Force

FCPA

Foreign Corrupt Practices Act

IDL

Indirect Labor

FT

Full Time

ILO

International Labour Organization

IoT

Internet of Things

IPCC

Intergovernmental Panel on Climate Change

G

UN Global Compact

GAAP

Generally Accepted Accounting Principles (US)IRECInternational Renewable Energy Credit

Top 100 Supplier List

GaN

Gallium Nitride

ISO

International Organization of Standardization

GBI

Global Business Initiative on Human Rights

GHG

Greenhouse Gas

ISO/IEC

International Organization of Standardization / International
Electrotechnical Commission

GJ

Gigajoules

IT

Information Technology

GRI

Global Reporting Initiative

ITESM

Monterrey Institute of Technology and Higher Education

GSA

Global Semiconductor Alliance

IWD

International Women’s Day

GSMAGroupe Speciale Mobile Association

GWh

Gigawatt Hours

GWP

Global Warming Potential

Sustainability Policy
Acronyms andAbbreviations
Abbreviations

ē Forward-Looking

Statements

205

ERG

F

ē Data and Indices

ē
ē
ē
ē

European Partnership for Responsible MineralsIē Governanceē Appendices

H

EPRM

NXP Corporate Sustainability ReportJ
NoneAppendices: Acronyms and Abbreviations
ē IntroductionKē Sustainability Strategy
ē Our Businessē Product Stewardshipē Environment, Healthand Safety

ē Social Responsibility

ē Data and Indices

Key Performance Indicator

kTons

Kilotons

kWh

Kilowatt Hours

LDP

Leadership Development Program (NXP)

LPG

Liquified Petroleum Gas

LRQA

Lloyd’s Registrar Quality Assurance

National Society of Black Engineers (US)NXPI

NXP Semiconductors N.V. (NASDAQ)

ODP

Ozone-Depleting Potential

ODS

Ozone-Depleting SubstanceOECD

Organization for Economic Co-operation and Development

OSHA

Occupational Safety and Health Administration (US)PCI DSS

Payment Card Industry Data Security Standard

PFAs

Polyfluoroalkyl Substances

O

P

m

Meter

PFCs

Perfluorinated Compounds

M

Million

PFOA

Perfluorooctanoic Acid

UN Global Compact

ML

Machine Learning

PFOS

Perfluorooctyl Sulfonates

Top 100 Supplier List

MSG

Multi-Stakeholder Steering Group (OECD)PM

Program Manager

MWhMegawatt HourPOP

Persistent Organic Pollutants (EU)PPE

Personal Protective Equipment

PT

Part-Time

QFN

Quad Flat No-Lead Package

RBA

Responsible Business Alliance

Sustainability Policy
Acronyms andAbbreviations
Abbreviations

ē Forward-Looking

Statements

206

KPI

M

ē Appendicesēēēē

KilogramLē Team Members

ē Governance

kg

NSBE

NXP Corporate Sustainability ReportN
NASDAQ

National Association of Securities Dealers AutomatedQuotations

NCC

Nominating and Compensation Committee (NXP)

NGO

Non-Governmental Organization

NOV

Notice of Violation

NOx

Nitrogen Oxides

Q

RAppendices: Acronyms and Abbreviations
ē Introduction
ē Sustainability Strategy
ē Our Businessē Product Stewardship

REACH

Registration, Evaluation, Authorisation and Restriction ofChemicals

RFRadio Frequency

RMAP

Responsible Minerals Assurance Process (RMI)

RMI

Responsible Minerals Initiative

RoHS

Restriction of Hazardous Substancesē Team Members

Substances of Very High Concern

TCFD

Task Force on Climate-Related Financial Disclosures

TCIR

Total Case Incident Rate (OSHA)

S

tCO2e

Tonnes of CO2 Equivalent

TNFD

Taskforce on Nature-Related Financial Disclosures

TSCA

Toxic Substances Control Act (US)UDHR

Universal Declaration of Human Rights

UK

United Kingdom

UKBA

UK Anti-Bribery Act 2010

Social Accountability International

SASB

Sustainability Accounting Standards Board

SBTi

Science Based Targets Initiative

SBTs

Science Based Targets

SCC

Semiconductor Climate Consortium (SEMI)

SCIP

Substances of Concern in articles such as or In complex
objects (Products) (EU)UN Global Compact

SD

Specialized Disclosure Form for Conflict Minerals (RMI)

UN

United Nations

Top 100 Supplier List

SDGs

Sustainable Development Goals (UN)UNGC

UN Global Compact

SEC

Securities and Exchange Commission (US)UNGPUN Guiding Principles on Business and Human Rights

SIA

Semiconductor Industry Association

US

United States

SIL

Single In-Line Package

UWB

Ultra-Wideband

SIP

Sales Incentive Program (NXP)

SoC

System on a Chip

SOx

Sulfur Oxides

VAP

Validated Assessment Program (RBA)

SPA

Strategic Planning Alignment (NXP)

VHTO

National Expert Organization on Girls in STEM (Netherlands)

SSMC

Systems on Silicon Manufacturing Company (Singapore)

VPP

Voluntary Protection Programs (OSHA)ē Governanceē Data and Indicesē AppendicesSustainability Policy
Acronyms andAbbreviations
Abbreviations

ē Forward-Looking

Statements

207

SVHCs

SAI

ē Social Responsibility

ē
ē
ē
ē

Science, Technology, Engineering and MathT

ē Environment, Healthand Safety

STEM

NXP Corporate Sustainability ReportUVAppendices: Acronyms and Abbreviations
ē Introduction
ē Sustainability Strategy
ē Our Businessē Environment, Healthand Safetyē Team Members
ē Social Responsibility

ē Data and Indices

Volatile Organic Compounds

WEEE

Waste Electrical and Electronic Equipment (EU)

WFD

Waste Framework Directive (EU)

WiN

Women in NXP

WLI

Women’s Leadership Initiative (GSA)

WRIWorld Resource Institute

WSC

World Semiconductor Council

WSI

Water Stress Index (UN)W

ē Product Stewardshipē Governance

VOCs

X
None

ē AppendicesēēēēUN Global Compact
Sustainability Policy

YIDC

Top 100 Supplier List

Acronyms andAbbreviations
Abbreviations

ē Forward-Looking

Statements208

Y

NXP Corporate Sustainability ReportZ
None

Young Innovator Design Challenge (NXP)Forward-Looking
Statements

Forward-Looking Statements
ē Introduction
ē Sustainability Strategy
ē Our Businessē Product Stewardshipē Environment, Healthand Safetyē Team Members
ē Social Responsibility
ē Governanceē Data and Indicesē Appendicesē Forward-Looking

Statements

210

NXP Corporate Sustainability Report

This document includes forward-looking statements which include statements
regarding NXP’s business strategy, carbon emissions, energy consumption, water
consumption, and other environmental targets, external ESG commitments, andworkplace diversity goals as well as any other statements which are not historicalfacts. By their nature, forward-looking statements are subject to numerous factors,
risks and uncertainties that could cause actual outcomes and results to be materiallydifferent from those projected. These factors, risks and uncertainties include thefollowing: market demand and semiconductor industry conditions; the ability tosuccessfully introduce new technologies and products; the demand for the goods
into which NXP’s products are incorporated; trade disputes between the U.S. andChina, potential increase of barriers to international trade and resulting disruptions to
NXP’s established supply chains; the impact of government actions and regulations,
including restrictions on the export of US-regulated products and technology;
increasing and evolving cybersecurity threats and privacy risks; the ability to generatesufficient cash, raise sufficient capital or refinance corporate debt at or before
maturity to meet both NXP’s debt service and research and development and capital
investment requirements; the ability to accurately estimate demand and match our
production capacity accordingly or obtain supplies from third-party producers; theaccess to production capacity from third-party outsourcing partners and any events
that might affect their business or NXP’s relationship with them; the ability to secureadequate and timely supply of equipment and materials from suppliers; the ability
to avoid operational problems and product defects and, if such issues were to arise,
to correct them quickly; the ability to form strategic partnerships and joint ventures
and to successfully cooperate with alliance partners; the ability to win competitive bid
selection processes; the ability to develop products for use in customers’ equipment

and products; the ability to successfully hire and retain key management and seniorproduct engineers; global hostilities, including the invasion of Ukraine by Russia andresulting regional instability, sanctions and any other retaliatory measures taken
against Russia and the continued hostilities and the armed conflict in the Middle
East, which could adversely impact the global supply chain, disrupt our operations
or negatively impact the demand for our products in our primary end markets; theability to maintain good relationships with NXP’s suppliers; and a change in tax laws
could have an effect on our estimated effective tax rate. In addition, this document
contains information concerning the semiconductor industry, our end markets andbusiness generally, which is forward-looking in nature and is based on a varietyof assumptions regarding the ways in which the semiconductor industry, our end
markets and business will develop. NXP has based these assumptions on information
currently available, if any one or more of these assumptions turn out to be incorrect,
actual results may differ from those predicted. While NXP does not know what impact
any such differences may have on its business, if there are such differences, its
future results of operations and its financial condition could be materially adversely
affected. Readers are cautioned not to place undue reliance on these forwardlooking statements, which speak to results only as of the initial publication date ofthis document. Except for any ongoing obligation to disclose material information as
required by the United States federal securities laws, NXP does not have any intention
or obligation to publicly update or revise any forward-looking statements after we
distribute this document, whether to reflect any future events or circumstances orotherwise. For a discussion of potential risks and uncertainties, please refer to the risk
factors listed in our SEC filings. Copies of our SEC filings are available on our Investor
Relations website, www.nxp.com/investor or from the SEC website, www.sec.gov.

NXP Semiconductors N.V. (NASDAQ: NXPI) brings together
bright minds to create breakthrough technologies thatmake the connected world better, safer and more secure.
As a world leader in secure connectivity solutions forembedded applications, NXP is pushing boundaries in theautomotive, 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, thecompany has approximately 34,200 team members inmore than 30 countries and posted revenue of $13.28 billion
in 2023. Find out more at www.nxp.com.

Visit nxp.com
nxp.com