2023

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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.

a. 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 theSustainability Strategy chapter of our 2023 Corporate Sustainability Report for more details.

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The CEO and the NXP Management Team, under the supervision of NXP’s Board of Directors, are responsible for implementation of NXP'ssustainability strategy, policies and goals. Climate-related risks and opportunities are included in the ESG and Sustainability function within theCompany and are managed in the same way as other ESG matters.

b. Describe
management’s
role in assessingand managing
climate-relatedrisks andopportunities.

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 Officerand Chief Operations and Manufacturing Officer. The ESG Management Board meets regularly to ensure our ESG performance is in line withour 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.
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.

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.

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2023 TCFD Index
Type of Risk and Opportunity

a. Describe
the climaterelated risks andopportunities
the organization
has identified
over the short,medium, andlong term.

b. Describe
the impactof climaterelated risks andopportunities onthe organization’sbusinesses,strategy,and financialplanning.
c. Describe theresilience of theorganization’sstrategy,
taking intoconsiderationdifferent climaterelated scenarios,
including a 2°C orlower scenario.

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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.

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2023 TCFD Index
Risk Management
Disclose how the organization identifies, assesses, and manages climate-related risks.
a. Describe theorganization’sprocesses foridentifying
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 riskmanagement.

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.

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2023 TCFD Index
a. Disclosethe metrics
used by theorganization toassess climaterelated risks andopportunities
in line with its
strategy and risk
management
process.

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 our 2023 Corporate Sustainability Report for more details, 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.
We measure our carbon footprint according to the GHG Protocol, a set of internationally recognized standards for quantifying and reporting GHGemissions. We report on all three of the protocol’s defined categories: Scope 1 (direct emissions), Scope 2 (indirect emissions, owned) and Scope3 (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.
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.
GHG Disclosure
Total Scope 1 and 2 (Market-Based) Emissions
Normalized Scope 1 and 2 (Market-Based) Emissions
Scope 1 and 2 (Market-Based) Emissions Intensity

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

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2020

2021

2022

2023

tCO2e982,123

1,180,209

1,169,506

897,536tCO2e/m2

17.8

17.6

15.9

15.6

tCO2e/$ Million

114

107

8968

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

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Scope 2 (Market-Based) Emissions
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 2 (Market-Based) Emissions
Scope 3 Emissions

b. Disclose Scope
1, Scope 2, and,if appropriate,
Scope 3greenhouse gas(GHG) emissions,and related risks.

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

Category 9 - Downstream Transportation andDistribution

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

Category 13 - Downstream Leased Assets

tCO2e649

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
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Climate-Related Mid-Term Targets
Emissions: Reduce carbon emissions by 35% in 2027 (2021 baseline)c. Describe thetargets used bythe organization
to manage
climate-relatedrisks andopportunities,and theorganization’sperformanceagainst thesetargets.

Energy:50% renewable electricity by 2027

Water:

60% of wastewater recycled by 2027

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 our 2023 Corporate Sustainability Report for more details.

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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.
For more information about NXP's ESG activities, please
read our full 2023 Corporate Sustainability Report.

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