2023

Executive
Summary:2023 NXP Corporate
Sustainability ReportIntroduction:
A lot has changed in the 17 years since our founding, in 2006. There isgreater awareness, 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. In thisExecutive Summary, we discuss the sustainability progress we’ve made,our key achievements in 2023 and how we plan to evolve our ESG efforts
in the future. For more detailed information, please read our full2023 Corporate Sustainability Report.

NXP Semiconductors N.V. (NASDAQ: NXPI), headquartered in Eindhoven, the Netherlands,
is a leader in secure connectivity solutions for embedded applications in the following
end markets: Automotive, Industrial and Internet of Things (IoT), Mobile
and Communications Infrastructure. Learn more at our About NXP webpage.

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.

2+60~34,200+30$ 13.28 B~9,500Years of
Combined
Experienceand Expertise

Team
Members

Countries
Worldwide

2023
Revenue

PatentFamilies
Owned

NXP Executive Summary: 2023 Corporate Sustainability Report“We develop
innovative
solutions that
address major.”
Kurt Sievers
President and CEO,NXP Semiconductors“NXP is committed to our ESG
journey and dedicated to driving
further advancements. We
will continue to review oursustainability activities regularly
to ensure that we are taking theappropriate actions to achieve
our ambitious, long-term goals,
which will require the ongoingdedication of all our teammembers, partners, customers
and other stakeholders.
The future is not set in stone,
and everyone has a role toplay in shaping it. We are on

3

NXP Executive Summary: 2023 Corporate Sustainability Report

this journey together, andalthough the road ahead may
be challenging at times, thejourney will be worth it if we cancontribute to making a better,more sustainable world forgenerations to come.
From automotive to industrial,
smart home to smart city,
mobile to communications
infrastructure, we develop
innovative solutions that
address major global needs.”

“Our passion forprogress stems
from our unwavering
belief in NXP’s
ability to createa.”Jennifer Wuamett
Executive Vice President,
General Counsel,
Corporate Secretary
and Chief Sustainability Officer
NXP Semiconductors“The key to a more sustainable
future is making continual
progress. Progress in technology,
innovation, representation,
collaboration — all of which
serve as the foundation of
NXP’ sustainability mission
and strategy.
Our passion for progress stems
from our unwavering belief in
NXP’s ability to create a betterworld and commitment to our4

NXP Executive Summary: 2023 Corporate Sustainability Report

global community. We develop
solutions and design products
aimed at major global needs,
from energy efficiency andgreener mobility to food security
and secure communications.
We also recognize our
responsibility to help foster
inclusion and protect humanrights in the workplace.”

Introduction:
Environmental

SocialGovernance

20%
Women in

Assessed
and Reportedon AllCertified as a

R&D Positions

Great Place
to Work

24%
Decreasein Absolute Scope

Improved Global
Employee Voluntary
Turnover to an

100%of Suppliers

86%
Waste Recycled

Conducted

 Unconscious
-Bias

50%
of Board

Training for
People Managers

Directors
have ESG
Experience70%of Team Members

100%
Certified

Scope 3in China, India,
Mexico and the US

Emission
Categories

All-Time Low

1 and 2 Emissions
Since 2021 Baseline

51%
Water Recycled

39%
Renewable

Electricity Useare Viewed asHighly Engaged

Establishedthe NXP

Human
RightsWorking Group

Published our First

Biodiversity
PolicyMaintained a
Low Health and
Safety Incident
Rate of

0.10
5

NXP Executive Summary: 2023 Corporate Sustainability Report

Signed the Supplier
Code of Conduct
StatementConflict-Free
3TG Smelters



Reviewed andUpdated the NXP
Human Rights

Due Diligence
SystemPublisheda Standalone

Anti-Bribery
andAnti-Corruption
PolicyESG Strategy:
Our ESG mission is to enable a better, safer, more secure and moresustainable world through innovation. That mission has given rise toa series of goals that inform our efforts and enable us to gauge our
performance and celebrate our accomplishments.
Innovation

Environment

Design andmanufacturetechnology that
positively impacts
the planet andsociety

Carbon neutral by

Develop higherperforming,
more energyefficient products

Reduce carbon
emissions by1

in 2027 (2021 baseline)
and achieve

SocialGovernance

women inR&D by 2025

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

underrepresented
minorities in our
US workforce

Integrate ESG into
our business so
we can foster
ownership andaccountability

renewable electricity2
Optimize natural
resources by 2027:
renewable energy

Zero toleranceof forced laborand human-rights
abusesofwastewater recycledof waste recycled
Zero workplace
injuries

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

6

NXP Executive Summary: 2023 Corporate Sustainability ReportProgress Toward Our ESG Goals
Goals

Progress in 2023

Innovation
Design and manufacturetechnology that positively
impacts the planet andsociety

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 and manufacture technology
so it has a positive impact on the planet and society.

Develop higher-performing,
more energy-efficient
products

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

Environmental
Carbon neutral by

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

Reduce carbon
emissions by

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

2035

3

35%

in 2027 (2021 baseline)

50% renewableelectricity by 2027

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

60% of wastewater

recycled by 2027

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

90%

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

of waste recycled by 2027

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.

3	

7

NXP Executive Summary: 2023 Corporate Sustainability ReportGoalsProgress in 2023

Social25%

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

50% underrepresented

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

Zero tolerance of forced laborand human-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 humanrights 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 semiconductor-industry
averages.

women in R&D by 2025

minorities in our US workforce

GovernanceWork with our supply-chain
partners to reduce theirenvironmental footprint

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

Integrate ESG into ourbusiness so we can foster
ownership and accountability

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

for 2023
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, NXP introduced a sustainability scorecard, which contains multiple
metrics intended to measure our year-on-year progress toward our long-term
aspirations relating to people and the environment. We encourage all team members
to participate in this progress and, as a result, have made the scorecard part of the AIP
for all team members. The sustainability component has a weighting of 20% in our AIP.

8NXP Executive Summary: 2023 Corporate Sustainability Report

Environmental Highlights
Objectives and Certifications
As an environmentally responsible manufacturer committed tocontinuous improvement, we strive to optimize our use of natural
resources, emissions to the environment and achieve operational
efficiencies. To support these objectives, we maintain and implement
an environmental management system.
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.

Roadmap to Carbon Neutrality
Our goal to be carbon neutral by 2035
presents multiple layers of complexity,
given that we use renewable and nonrenewable electricity, fossil fuels, PFCs
and HTFs. By 2027, our mid-term goal
is to reduce Scope 1 and 2 absoluteemissions by 35% from a 2021 baseline.
To reach our mid-term goal, we
will address Scope 1 reduction
by focusing on designing and/or installing equipment to reduce
emissions, substituting chemicals andoptimizing manufacturing processes.
Since electricity is our largest GHG
contributor, another of our mid-termgoals is to increase our renewableelectricity use to 50% and thereby
decrease our Scope 2 emissions.

9

NXP Executive Summary: 2023 Corporate Sustainability Report

Scope 3 Assessment
2023 marked the first time we made adetailed 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, wewill also work to establish methods toreduce our Scope 3 footprint, and will
also set Scope 1, Scope 2 and Scope 3
SBTs in 2024.

Emissions

Energy24%

39%

We take a three-pronged approach tocarbon reduction: 1) reduce, remove
or replace chemicals with a highglobal-warming potential (GWP)
in our manufacturing processes, 2)lower our absolute and normalizedenergy consumption and 3) execute
our carbon-free energy transition
plan. This approach helps us achievecarbon neutrality while reducing oreven eliminating our carbon offsets inthe future. Since 2013, we’ve lowered
absolute emissions by 42%.

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

Decrease in Absolute
Scope 1 and 2 Emissions
Since 2021 Baseline

Renewable
Electricity Use

Renewable Electricity

39%
61%

Scope 1

Scope 2 (Market-Based)
Scope 3

Renewable Electricity

10

NXP Executive Summary: 2023 Corporate Sustainability Report

Non-Renewable Electricity

Water

Waste

51%

86%

of Water
Recycled

We understand that, in addition to
impacting our manufacturing sites,
water availability also impacts otherindustrial, agricultural and residential
users in the communities where we
operate. By using less water, we canhelp increase the supply for othersin our communities. Our decadelong focus on water conservation
has emphasized the use of more
efficient tools, taking advantage
of opportunities to increase water
recycling and finding ways to optimize
processes. A large part of our water
consumption is fixed, such as the use ofwater for chillers, plating and cleaning.
In addition to our water recycling
efforts, we are looking at options to
reduce the overall water consumption.

of Waste
Recycled

We are committed to reducing theamount of waste we send to landfill
and work to recycle/reuse thewaste we generate. We continue tocollaborate with our supply chain
to identify opportunities for waste
reduction or alternative use and lookfor ways to reduce manufacturing
waste by improving yield, optimizing
processes and minimizing the wasteof scrap material.

The waste by-product of chip manufacturing, usually called “sludge,” consists of water andparticles 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.
NXP’s facility in Taiwan is making meaningful progress addressing this challenge. The teamis 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 their waste recycling rate to above their 92% target, while processing remaining
waste in innovative ways.

11

NXP Executive Summary: 2023 Corporate Sustainability ReportSocial Highlights
Our Purpose
We have a long history of empowering our team members todevelop their skill sets and expand their capabilities. When it comesto engagement and development, we want our team members togrow, progress and advance across job types, functions, organizations,geographies and levels — all at a pace that is unique to the individual.

Team-Member Engagement

91%

Feel “Proud”
According to Winning
Culture Survey
Respondents
In our 2023 survey, we solicited input
from all NXP team members. Ninety
percent of team members participatedin the survey with Ethics, Collaboration,
Engagement and DE&I being thefour 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% believingthat NXP is a great place to work.

Awards and Recognition
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, like collaborating with their colleagues, andexperience an engaging workplace environment. The survey launched in four countries andculminated with NXP being certified as a 2023 Great Place to Work in China, India, Mexico andthe United States. In 2024, NXP plans to continue the momentum and survey team members
in 13 additional countries.
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NXP Executive Summary: 2023 Corporate Sustainability ReportDiversity, Equality
and Inclusion

At NXP, inclusion is key to living our corevalues, which are built on a foundationof trust and respect. We recognize
the importance of representation,
value diversity, equality and inclusion(DE&I) and respect the unique talents,
experiences, backgrounds, cultures andideas of our team members. We invite
everyone to be their authentic selvesat work, without exception. This is whatmakes us who we are at NXP.
To support an inclusive environmentand create more awareness about
unconscious bias, we deployedunconscious bias to all managers
within the company with 88%
completing the training.

20%

Women in R&D
Positions
We monitor gender statistics globally,
across all roles and look for continuous
improvements, which include anevaluation of the practices at thecountry level. Women in R&D roles
increased by 1% over the prior year,
resulting in 20% representation. In
support of our aspirational goal ofincreasing representation of women
we have implemented development
programs and retention strategies.
Using feedback from our Winning
Culture Survey, roundtable discussions
and exit interviews, we took action to
improve retention. We reduced theoverall attrition of women, and saw
a reduction in the attrition of womenin R&D from 7.7% in 2022 to 4.6%
in 2023.
13

NXP Executive Summary: 2023 Corporate Sustainability ReportBenefits

Development and Growth

Global
Well-Being
Portal387,179

In 2023, NXP introduced Wellbeing@
NXP, aimed at helping our teammembers maintain their physicalhealth, mental health and financial
well-being through our various
programs offered at the local level.
Through an app-based portal, we
support challenges throughout theyear and provide daily tips, journeys
and online programs for employees
to maintain their well-being.

NXP has a wide variety of learningand development programs for ourteam members across the globe,
including new offerings introduced in
2023 and others to come in 2024. One
highlight was the unconscious-bias
training for people managers. In 2023,
we delivered the training to our entire
Human Resources (HR) organizationand launched it enterprise-wide to ourpeople managers. Approximately 2,533
employees participated in the training,
including 2,168 people managers.
This will be an ongoing initiative toensure we train people managers
who are either new to the company
or have moved into roles with peoplemanagement responsibility.

Online Training
Courses Completed

Social Responsibility

Human Rights
Working GroupNXP collaborates closely with ourbusiness partners to proactively andtransparently identify and address
potential human-rights allegations
and prevent or address credible
human-rights abuses. In 2023, NXP
established the NXP Human Rights
Working Group, consisting of crossfunctional representation from Legal,
Human Resources, Procurement,
Corporate Trade Compliance andthe Sustainability Office.
14

NXP Executive Summary: 2023 Corporate Sustainability ReportGovernance Highlights
ESG Oversight
Our sustainability strategy is aligned with and incorporated into thecompany’s long-term 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 and thenintegrating committee work on these issues in their reports to the full
Board. The CEO and the NXP Management Team, together with andunder the supervision of NXP’s Board of Directors, are responsible for
implementation of NXP’s sustainability strategy, policies and goals.

Cybersecurity

ISO/IEC 27001
Certified

Board Experience

NXP’s cybersecurity initiatives focus on
strengthening our Core IT infrastructureand services against external threats,
securing our manufacturing operations
from compromise, limiting damage
through processes and controls andprotecting our intellectual property.
NXP is certified and externally audited
to ISO/IEC 27001 with certain additional
certifications.

15

NXP Executive Summary: 2023 Corporate Sustainability Report50%of Directors withESG Experience
The Board, with the support of
the Nominating, Governance andSustainability Committee, maintains
an appropriate balance with respect tothe expertise, experience and diversity
on the Board. Five of our Board Directors
have ESG experience. Additionally, theBoard is committed to supporting,valuing and leveraging diversity in its
composition. This includes gender andethnic/cultural diversity, to ensure abalance in representation. The Board
comprises a mix of men and women,with neither gender accounting for
more than 70% of seats.

Ethics

Responsible Mineral Sourcing

133

100%

We aim to compete and operate in an
ethical and lawful manner. All concerns
raised are taken seriously andinvestigated. In recent years, we haveincreased our communication about
the importance of speaking up and theavailable reporting channels. All reports
are assessed and discussed by the NXP
Ethics Committee. In 2023, our reportinglevels were actively used throughout
the organization, indicating that ourreporting channels are effective.

Since 2017, the systems and processes
we have put in place drive our supplychain to be Conflict-Free. All suppliers,
including contractors and external
manufacturers, are required 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 thesmelter or will remove them from our
supply chain.

Reports Received by
the Ethics Committee

CertifiedMineral Smelters

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 ahuman-rights and environmental duediligence program that will continually
identify and address the salient
human-rights risks of NXP’s businessand operations, as well as the risks ofour value chain.

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NXP Executive Summary: 2023 Corporate Sustainability Report

Sustainable Product Highlights
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 more sustainable future. For this reason, we develop solutions aimed
at major global needs – from energy efficiency and greener mobility tofood security.

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 andthe FS26 saving energy with ultra-low
power modes.

Smart City – NFC, UCODE and JCOP® ID
2 find new strengths in sustainability,with our NFC chips tracking producthistory 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.

17

NXP Executive Summary: 2023 Corporate Sustainability ReportIndustrial Solutions – We announced
a major MOU and agtech partnershipusing i.MX 8M Plus and the launchof MCX N series MCUs and i.MX 91
applications processors, which
combine platform longevity withlow power consumption. NXP’s AI/ML
solutions help predictive maintenancepreserve resources in every industrial
sector, while an MOU with Honeywellaims to optimize and secure energy
use in commercial buildings.
A partnership with Aigen and Au-Zone
Technologies uses i.MX 8M Plus tohelp reduce pesticide use. Our new
MCX N Series balances performanceand power, 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.

Smart Home – 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.

18

NXP Executive Summary: 2023 Corporate Sustainability ReportMobile – Consumers around the world
are increasingly comfortable withwearable devices and are using thesedevices to track and monitor theirhealth 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 high performance with power
efficiency and offer as much as three
weeks of battery life on a single charge.

Communications Infrastructure– When it comes to addressing
environmental and social challenges,
the importance of 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 secureand more flexible.

For more information on all our our sustainable product solutions, visit our19

NXP Executive Summary: 2023 Corporate Sustainability Reportwww.nxp.com
NXP Semiconductors N.V. (NASDAQ: NXPI) brings
together bright minds to create breakthroughtechnologies that make the connected world
better, safer and more secure. As a world leader
in secure connectivity solutions for embedded
applications, NXP is pushing boundaries in
the automotive, industrial & IoT, mobile, andcommunication infrastructure markets while
delivering solutions that advance a moresustainable future. Built on more than 60 years ofcombined experience and expertise, the company
has approximately 34,200 team members in morethan 30 countries and posted revenue of $13.28
billion in 2023. Find out more at www.nxp.com.
For more information about NXP’s ESG activities,
please read our full Corporate Sustainability Report.